Useless . Congress back to work and a lot on the table tax refor, Harvey Relief and fast approaching debt ceiling. Will anything get done every building after Hurricane Harvey how much is it going to cost well ask a ceo of u. S. Concrete im Brian Sullivan power lunch begins right now welcome to power lunch, september is off to a shaky start. Stocks are at session lows, posting the biggest one day tumble since august. In the wake of the saber rattling, the dow plunging more than 200 points and oil soaring hitting the highest level in almost two weeks, gold hitting its highest level of the year as well United Technology down more than 3 , remember its a big yield deal news of the day agreed for 20 billion insmed, more than doubling, positive data on the experimental lung cancer drug. Tyler . Thank you very much good day, welcome. We are going to begin where all of the action is for us, and that is the markets. North koreas latest bomb test reverberating through the markets right now, taking them down dominic chu tracking stocks that are dragging the market lower. We are near the session low if you take a look at the red across the board the dow being down, hugely one of the biggest underperformers of the day nasdaq composite off 1. 5 points, holding relatively steady in relative proportion to some of these losses here. Check out these other parts of the market that are seeing out sized losses, leading the declines, kbe, which is the etf that tracks the bank stocks down almost 3 . Transportation stocks also done 1 as well and check out whats happening with korea that etf very much in play as we talk about tensions in north korea. Those shares down as well. Crude oil up 3 almost the gold mining etf, gold prices soaring here that vehicle tore etf is up 1. 5 and also bonds u. S. Government bonds as well. Keep an eye on safety trades, they could be themes if we get steam in the pressure. North korea fueling fears and congress back to work after the summer break september is typically historically not such a good one for stocks lets bring in brian belski, randy warren is chief Investment Officer of the warren Financial Service. Gentlemen, welcome brian, let me start with you you can take the historical pattern here in september and say its historically not a good time this september you would have to say there is an awful lot for investors to process. Theres a lot to process. How do you do it . Welcome back to work. Weve missed you volume was about 30 to 40 lighter this august relative to what weve seen in history it kind of sets up for what we would believe could be a volatile september, youre right. If you go back to 2011, we had issues with the Super Committee and debt rating. 2013 we had the Government Shutdown then you go back to other recent memories with respect to 2008, which actually was a positive month if you go back and look at history. Since 2009, october has been strong and some of these numbers are kind of different but yeah, the market has been aching for a breaking, quote unquote and you have to be careful what you ask for as everyone comes back to work and begins to deploy capital. Now, i think the kiki thing you have to understand, a correction was coming it needed to happen. We needed to take a little wind out of the sails is the bull market over . Absolutely not is a recess looming . Absolutely not fundamentals of the market remain very well in place. This is now just kind of a timing issue. Randy, is it a time to play defense in your portfolio or offense . No, i dont think its time to become defensive, no. What we know about bull markets is they dont just die of old age. Seems like a Nuclear Situation could derail things when the geopolitical events become this serious of the type of thing were looking at right now i mean, it might have an impact, right . Absolutely. I mean, its a huge deal. Its a huge deal but so what do i do here as i try and process through and wade through the various the various cross currents that are affecting the market whether its money well have to spend to rebuild houston, another hurricane barreling down potentially hitting florida. Debt ceiling, all of that stuff. How do i process and make a smart move or two here its time to start looking for opportunity. Get out your Shopping List and buy list start thinking about when you want to pull the trigger dont be too quick as weve already said the market has been looking for an opportunity to pull back here. So youve got to bid your time a little bit but look at your Shopping List, get things ready and start thinking about wheres the market going to be at christmas time wheres the market going to be at the end of the year its probably going to be higher than it is right now and probably going to be higher than it is in september as we usually have a little bit of a rocky market during the month of september. But brian, if we talk about north korea, i mean, lets be clear, to tylers point and i get the cynicism in his voice, if were talking about nuclear war, you cant plan for that if you believe were going to go to route, it should be 100 cash, 100 gold e theres Everything Else and north korea, right . With respect to north korea, for all intents and purposes have been realities for market for 40 years number two, this whole notion weve been on before talking about the ability north korea has not had a Hydrogen Bomb for 40 years. No, no, but for them to do something stupid, attack the south, attack japan, Something Like that, or give even escalate involvement in vietnam. Number two, this whole notion of trying to prepare for a black swan event is bunk its just bunk its not investing is not all or none. Its about being allocated properly we have to agree that the construct of the u. S. Stock market remains positive. Your emerging markets are beginning to come on were starting to see positive things develop from a fundamental perspective elsewhere. America is still the largest portion of the worlds gdp so lets get through there should only be two schools of thought number one, things are going to be okay fundamentally, harvey will rebuild, that might lift gdp. Correct. As we invest. Then theres the Nuclear Threat option in north korea which means its a binary outcome is everything is not okay. Its a binary could you teou everything is okay you dont know if there is going to be a world. Who cares if youre going to buy apple stock at 70 versus buying it right now. Last quick thought for you, randy. I think its time to get out that buy list. I would be looking at things that have been beaten down here. We like ulta in the retail space even though amazon is doing such a great job, but, you know, ulta has the ability to bring people in through the doors via the Service Model they put together. Theres some opportunity you know, heome depot is doing pretty well today. The defense stocks are doing great. So theres definitely opportunity. The market isnt all up. So theres plenty to look at. Randy warren, thank you very much. Brian, always good to see you. Thanks for having us. Where do we go from here . Lets get to the latest on north korea. Ron allen live in seoul, south korea with more. Ron . The headline here today is there are more indications and reports that North Koreans are planning to launch more missiles, theres a major holiday coming up this weekend and theres talk they might do that as an act of celebration. They are not backing down. Meanwhile in south korea, every day brings another massive show of milt tri force, more exercises today, this time by the navy there have been air force, Army Exercises since that massive potentially h bomb test that they pulled off a couple of days ago. The South Koreans trying to deter the North Koreans but still moving forward developing consultations between south korea and the United States, theres talk of more antimissile defense batteries coming to the country from the United States. Theres also talk of lifting the size of missiles that the South Koreans deploy and even talk of deploying Tactical Nuclear weapon, something that would be a real big step forward, for a country that talks about trying to reconcile and talk with the north. There was interesting comment from Vladimir Putin and russia today saying all of this is hysteria, military hysteria that can lead to a global catastrophe of some sort and kept saying that sanctions, talking tough with the North Koreans is not going to work. But the u. S. Is pushing for more sanctions at the u. N. Security council, perhaps targeting the norths oil Energy Supplies and perhaps targeting countries or companies that do business with the North Koreans and that puts america in t china in the crosshair theres talk of a possibility of more defiance and missile launches by the North Koreans in the coming days, back to you guys. Were watching for all of those things thank you. Back here in washington, President Trump threatening to cut off any trade with any countries doing business with north korea. That would be an extraordinary move because number one on the list, china. Long been the longest trading partner. As of today china said it will stop importing commodities and other things like seafood from north korea. China continues to supply oil to north korea and also allows north korean Front Companies to operate in china theres also russia. U. N. Investigators found that a state owned Truck Company was operating a plant in north korea. The facility produced trucks later used by the north Korean Military theres also malaysia, it has allowed several north korea Front Companies to operate there, and then theres africa several countries there buy weapons from north korea and 15 african countries have used north korean laborers to commission large statues and memorials and other Construction Projects to cut off all trade with every single country, china sounds hyperbolic and most dont believe it because that could be extraordinary. Well see. Lets bring in thomas burn, president of the Korea Society and nancy sotorberg, advisers to president s clinton and obama your analysis of where we stand with the situation, lots of war, war of words here, you heard what ron allen had to say, talking about a Hydrogen Bomb being put on a intercontinental ballistic missile. Your assessment . Certainly north korea rach eted things up and things took a big step up in 2016 after the fourth test when youre talking about market reactions particularly in seoul and tokyo. The fourth test in the icbms this is this is what kim jongun i think is wanting to do, what his father wanted to do and thats to the strategic intent is to drive a wedge between the u. S. And south korea to weaken the alliance i think to the contrary, thats not happening. What do you think about this talk of increased sanctions . Not just on north korea and other countries that aid and abet them. Will that work i think its the way forward. Its gotten lost in all of the hoopla about president s comments of fire and fury, but right before that, the Ambassador Haley had within of the most impressive diplomatic victories at the u. N. Security council, unanimous vote with support from china and russia to cut off one third of north koreas trade. I think we need to let those bite a little bit. You need to look at financial sanctions, trade sanctions, things like that, were clearly not going to cut off our trade with china thats a false statement and not realistic. But focusing on the diplomatic while keeping the military as a last option not a first. I dont think it was wise for the president to extell rain rousely threaten war with north korea. Thats ramping up and dividing a wedge with our allies. You know what tom freedman said about that this morning, he said, maybe a little bit of crazy isnt so bad right now. I disagree with that. I usually agree with tom freedman but i dont think its helpful to have those types of threats not coordinated with our military and not up front let the sanctions bite and see if he can really make the North Koreans feel the squeeze and start trying to deny the funds, that enable him to build these companies, these cost an absolute fortune we want to step back from the brink. This is not a man whos going to step back from the brink unless hes forced to. Theyve got in north korea no doubt looking at the United States and probably a dysfunctional distracted congress and executive branch. They also see the Winter Olympics taking place a few miles south of them in about five months. Kim jongun must feel he has leverage what do you think he wants as i said before, what he really wants is to weaken the u. S. , our alliance and agree with ambassador sotoberg, sanctions can be useful. They proved very useful in getting the p5 1 accord with iran however sanctions take time. The comprehensive sanctions in energy and Financial Service transportation and insurance were in place for four to five years before the agreement was signed. What does that do sanctions did not work with cuba except for impofrishing the citizens we know kim jongun and his family are riding around in First Class Cars eating caviar while the rest of the country suffers. Is it time to go the other way i think the in the case the north korea, north korea is a hard target because the leadership has shown it will sacrifice the livelihood and welfare of most of people. However, there is an elite in pyongyang whose loyalty has to be maintained and that could be the source of vulnerability to deprive them of the pros spert theyve had over the past five to ten years with a huge increase in trade with china. Let me ask for a quick answer here what does having a Hydrogen Bomb give kim jong il what does it give him he didnt have before other than a Hydrogen Bomb . What leverage . How is he going to use it . This is a man whos exploited four Nuclear Weapons and in his view more scary and threatening to us. It doesnt fundamentally change u. S. Calculations, hes ratchetted up the threats and we need to stand up to it theres serious negative consequences there, squeezing him and denying access to the c caviar and money to build these things is the first resort, keeping the military always on the table. All right, ladies and gentlemen, thank you so much thomas burn and ambassador sotoberg. My pleasure. New york back to full service after extensive repairs this summer and amtrak saying the project was done on time and on budget the ceo of amtrak will join us with how his Company Continues to repair the rail as we head to break, lets look 22 s p 500, sector only utilities are in the green ll, na now turning negative as wefincials the biggest loser, it is the biggest down market day in about a month and were back after this. Where the heart beats warm and true, thats texas. Where we always welcome you, thats texas. Where we always find a way, thats texas. Weve got a market selloff, and you have people buying treasuries for safety. That means yields have been falling and that means already had a selloff going and when yields are falling, that hurts the flattens the yield curve and thats how they make money. You can see we have a big selloff across the board with the financials. Meantime new yorks summer of commuting hell is finally over amtrak announcing it completed its program at manhattan penn station and it was on time and on budget. You heard right. Joining us now is the man who pulled off the seemingly impossible, he will probably thankfully step aside in december, one of the hardest jobs out there because youve got so many competing interests, obviously the state of new york, state of new jersey, federal government, csx, freight rail, youve got it done whats next . What else can realistically get done with this congress to make sure a couple00,000 people can get to work . Weve got a solid infrastructure plan for penn station which we own and maintain through the next year no outages like the inappropriately named summer that we just went through, much more of the summer of minor inconvenience, if anything we have a lot of work going orn upstairs in the station. So i think we have a great plan and we continue to invest. Amtrak is a good company and my goal is now richard andersons goal as we get here is just to make it an even better company. Is it funded are all of the things you want to do already funded how much is reliant on Congress Getting any kind of new spending or infrastructure bill through if you look at congresss proposals this year, were fine. If you look at the funding weve received for the past few years, were fine in terms of making incremental improvements in keeping maintenance up where we really need the money for the future is the gate way programs the massive program that improves infrastructure and adds capacity all the way into penn station. Are the railroads safe in america . Yeah. They are . Yeah, they are very safe. Why does it seem there are more than the normal amount of derailments over the past five years or am i wrong about that i think actually if you looked at statistics, derailments continue to track down if you look at the infrastructure of americas railroads having been in the business for a long, long time i will tell you its probably in the best shape its been in in 60, 70 years in terms of Big Investments by all of the freight rail companies, the quarter can get better but the quarter is certainly a very safe railroad. Is it smart though for us as National Taxpayers to subsidized so much of a. Mtrak that isnt profitable if you look at amtrak across the board, the first thing to remember, no Passenger Rail transportation anywhere in the world is profitable in the sense of a Public Company gap accounting kind of company right . Our goal is to get amtrak on an operating basis it breaks even were not that the far from it. Meaning extra money for in a infrastructu infrastructure. Capital expenditure comes and i think thats a great investment in americas infrastructure because if youre not going to spend it on amtrak, youre going to go spend it on some other way to move people around. Separate note, you can take the amtrak to miami, Hurricane Irma expected to hit florida what are you doing in preparation . Weve already started to prepare. You prepare a long way out there will probably come a point its expected to hit sundayish and saturday probably start to curtail service around jacksonville and back. Well watch the storm and see how it develops. We, for example are still not operating through the greater houston area because the freights essentially are shut down. Thats you used to be the ceo of a Freight Company and we talked about 80 of freight rail capacity was shut down through the houston area i know thats not your world but im sure you hear things what are you hearing about the state of rail . I think that they have work to do. Theyve mobilized massive forces our company went through katrina into new orleans and we were probably the first thing running once new orleans opened up. They are all very focused on it. Its the livelihood of those companies as well as that region economically so they have a lot of resources down there they are very competent in putting railroads back together again. Ceo of amtrak, real pleasure to have you back on, on time and on budget, i dont think its ever spoken by amtrak. Have you taken a train ride hes going to look at penn station and see what it looks at down below. Id love to any time. Absolutely. Congratulations on not having the summer of heck still ahead, north koreas bomb test sending this commodity to a near oneyear high rahtl talk about what it is stig ahead back to work for congress. How much work will get done though dont go anywhere. Power lunch is back in two minutes. Not how your money will last through retirement. Let us help you with those decisions, and get on with your life. We make it easier to plan for retirement with day one target date funds from prudential. Look forward to your 401k plan. Youre searching for something. Whoooo. Like the perfect deal. On the perfect hotel. So wouldnt it be perfect if. There was a single site. Where you could find the. Right hotel for you at the best price . There is. Because tripadvisor now compares. Prices from over 200 booking. Sites. To save you up to 30 . On the hotel you want. Trust this birds words. Tripadvisor. The latest reviews. The lowest prices. Kevin, meet yourkeviner. Kevin Kevin Kevin KevinKevin Kevin Kevin kevin kevin trusted advice for life. Kevin, hows your mom . Life well planned. See what a Raymond JamesFinancial Advisor can do for you. A one year high on concerns over north koreas latest bomb test and thats helping to lift gold mining stocks gdx up nearly 2 so far. Leaders include first majestic and harmony gold and kinross, up more than 3 on the day. Etf on track for its best day here in Third Straight day of gains. Certainly a stock to watch. Thank you very much it is back to work for congress. President trump meeting with gop leadership at the white house. It will talk tax reform. Live at the white house with what we can expect if anything. Brian, that conversation is already under way. President trump meeting with gary cohn and rest of the National Council in the oval office right now ahead of that bigger meeting with gop leadership later on this afternoon. Im told this is just a touch glove meeting to reconnect now that everyone is back in washington and as the president himself is stepping up his campaign for tax reform over the weekend, he put out an oped in the milwaukee journey sentinel that called tax reform the foundation of his jobs agenda and saying that he wants to work with congress on a plan that is progrowth, pro jobs, pro worker and pro american worth noting that wisconsin is both home to of course House Speaker paul ryan but also democratic senator tammy baldwin, up for reelection next year and has signaled that tax reform could be an issue that she would be willing to negotiate on however it is clear that theres not much oxygen left for tax reform once you consider all of the things that have been on congresss agenda over these past few months. Microsoft putting out a statement that he wants the administration and congress to work on replacing daca, that deferred action for Childhood Arrivals Program before it turns attention to tax reform. Maybe that reality is setting in with the Business Community as well, guys. Thank you very much, harvey funding the debt ceiling, also a big focus for lawmakers as they return kayla has more on that the two most urgent items on the to do list for lawmakers between now and end of the month, 12 working days for congress those top two items improve an initial aid package for Harvey Recovery efforts and raised the debt ceiling which the u. S. Will hit on or around the 29th. The senate is likely to link the two as the white house has suggested. Secretary m nuxtchin said it would keep the money from getting to texas moody aesz says in the u. S. Misses its debt payment would lose its aaa rating. They acknowledge the importance of both issues and said the two sides must reach a bipartisan consensus. Heres a snapshot 6 what else lawmakers have to tackle this month alone. The governments fiscal year ends and they havent taken up any spending bills they must find a way to extend the line of credit to federal spending or risk a Government ShutdownCongress Must also reauthorize flood and Childrens Health insurance. Expires at the end of the month two. All of that i just listed is what lawmakers must do before october begins thats without even mentioning if they want to take up as elon just mentioned and that is tax reform all right, kayla, thank you very much. Speaking of tax reform, will congress be able to get anything done on that lets bring in larry kudlow and rick johnston, editor at axeios, owned by our Parent Company comcast is an investor in axios. I read it every day. We all do big fans, nick. Thank you. Larry, let me let you get the first word in here where do we stand on tax reform . Where are the fault lines as later today the big six meet with the president. So i think the really important story right now, the big six are closer than you think on tax cuts and reform, much closer. Closer to one another or the president. Closer to one another not cut yet but they are down the road pretty good theyve been working hard on this the president absolutely manic about getting this done. You saw good speech last week but he put an editorial oped peach in the milwaukee sentinel journal. Hes really on to this heres the growing problem with getting tax cuts you have to have a budget resolution no budget resolution then you cant issue reconciliation instructions to have taxes and spending and right now the result of that is what . Well the result that is you have to get 60 votes no, the results of that is you need a budget resolution out of both companies in the senate and house. Diane got her done in the house not the senate then each floor has to pass it and conference then you have a budget resolution with instructions that allow tax cuts and tax reform if youre watching on a daily basis, people think the selloff is about problems getting watch the budget process. So there was just in the last few minutes, there was a one month tea bill described as ghastly the yield is 1. 3 . Yesterday. 95 thats government money due in a month. So clearly wall street is thinking we could have a budget impasse again or some kind of impasse which means the debt doesnt get paid. I have no doubt that youre correct. But i will say this, i personally listening to Mitch Mcconnell and others, i dont think theres any problem with raising the debt ceiling i dont think theres going to be any problem with a continuing resolution to year end i dont think theres going to be any problem with the harvey money, the 8 billion or so forth. What im raising is you need a budget resolution to get the tax cuts and i dont think thats been properly covered. Nick may disagree. Ill be more blunt, given the Harvey Relief and north korea and Everything Else, do you think theres any way congress would be so stupid as to not get something dong i think they would love to get something done but theres a lot of stuff they have to do before they get to that along with the budget resolution and short term things and now throw immigration into the mix for the rest of the year the daca announcement doesnt make congresss job easier of getting tax reform done and also agree the debt ceiling issue and harvey stuff will be done this month. Again, that will kick the Government Shutdown issue back to december. Does the daca issue eliminate the chance that one democrat will get on board on anything related to tax reform . You can always win democrats over with certain policies on taxes but its right it doesnt make republicans any more friends in congress. I covered immigration for six years during the Bush Administration theres a grave yard for policy and compromise things die there youre bringing daca into this mix, that doesnt make any of these any easier. Nick, i agree with you on the agree of difficulty, it seems to me this is the way its going to play out they are going to kick that can down the road. The president is willing to go six months if it has to go longer as i understood what Jeff Sessions said today or tweeted, they are not kicking anybody out. Rescinding the executive order which they believe was unconstitutional. May have lost in court. Thats right. Got the pressure from the federal judges but i just think thats down the road i wouldnt you think they are decoupled fundament fundamentally . I do. I want these youngsters to stay. Im soft or whatever you want to call me. They are doing to do merit based system and change that they should do but i come back to my point, if youre watching for tax cuts and that influences your Investment Decisions in the stock market, watch the budget the budget is a pain in the neck its boring, but its there. Youve got to have a budget. And thats where they are lagging. So youve got to a continuing res, taken through year end. To fund the government, absolutely correct and then if you dont get that budget done, youre spilling over into q1 into the i think thats going to go into next year getting this continuing resolution and we have another hurricane hitting florida it seems in five days, thats going to need additional funding. A lot of harvey stuff wont be solved with first deal they have a full plate before the end of the year. I think tax reform would be very heroic to get that done. You know, let me ask you a question though, if i were a house or senate member, and the end of fiscal 17 in a couple of weeks, september 30th, wouldnt i want to get as much harvey assistance into last years budget as i possibly could by doing it now in other words, the number 8 billion is an interesting number but the total cost as i think you would agree is going to be a whole lot higher than that, maybe 100 billion, maybe more than that. Wouldnt you want to get as much of that into fy17 as possible. You can play these budget games but short term fema does need the money and youre not going to get 100 billion done in the next week. That number goes hire, you start to see fights being picked with the more conservative members. Great story to read my good friend jonathan, to go after Republican Leaders if they get out of the lane on some of the these policy things, that could be taxes, immigration, that will be harvey money and Government Shutdown money it gets much, much more difficult. They get an initial drop now and come back for a whole other fight. Give me a budget. Im going to talk to mr. Meadows, a great friend. Free market give me a budget so i can get my tax cuts. All right. On that note. Thats all i want. Thats all youre a humble guy not asking for much. I would let these kids stay in america thank you very much still ahead, just as one state trying to recover from a massive hurricane, the next one already on track to hit the southern u. S the latest on irma now a witegory 5 hurricane with nds at 180 miles an hour thats next. Let your data live wherever it needs to, but see it all in one view. The ibm cloud. The cloud for enterprise. Yours. Heres your cnbc news update one of north koreas top diplomats issuing a warning on a conference on disarmament being held in geneva, this comes two days after north korea december mate d its fifth test. The u. S. Would receive more gift packages from my country as long as it relies on the attempt to put pressure on the dprk. Hurricane irma strengthening into a monsterous category 5 storm as it heads to the caribbean on a path towards the u. S. Nasa releasing this video earlier today from space winds have reached 180 Miles Per Hour irma is heading towards the Leeward Islands and puerto rico. A new world record has been set for carrying mugs of beer. Germanys 29 mugs filled with beer for more than 40 yards, thats more than 150 pounds. Training since february for the record and held the previous mark of 27 mugs. Didnt spill that much either. Cheers. I guess that would be a big table apparently he started that is impressive. Look at that. We didnt answer you did not answer the most important question of all on the story. Did he get to drink any of that after that i dont know whether he got to drink any of it but it certainly was wearing some of it. So i think he gets one. I think he gets one. Good man. There we go. Thank you very much your money starting off the back to school season, no doubt with a failing grade today, north koreas latest test fearing 100 points of the drop is due to the three stocks, goldman stacks, United Technology and boeing, there are a couple on the upside but michelle, some of these auctions are impacting the financials. Could be. Normally how often do we talk about a one month t bill, never. They are never note worthy except for the one that just happened in the last hour hour when the auction happened last week pfs. 7 now 1. 33 that is a huge increase in the yield. It is a small number overall but for it to go up so much, the key is thats time to be paid back right at the time at the time where there would be a debt ceiling failure. Exactly potentially. Epically. Be more worried maybe they wouldnt get to paid back. They are not yielding like that they think its a temporary issue. If youre worried theres going to be drama in congress. Maybe a group of people, hedge funds are whatever are placing a bet on getting the budget resolution or refusing to buy. Showing the right number there . I dont think it was. Thats a one month time average over time. Its confusing. By the way, really odd new lows, 52 week or multiyear lows, its not one group qualcomm, Harly Davidson and discovery and mow sayic. Spam and motorcycles and semiconductors hitting 52week lows explain that one. Heck of a mix. Even on day like today we have not forgotten to find you interesting investment opportunities. Street talk is up next, t bills are falling once again can we go back below 2 on the 10year . Well try to get it answered coming up. Where the heart beats warm and true, thats texas. Where we always welcome you, thats texas. Where we always find a way, thats texas. For tech advice. Dell Small Business advisor with one phone call, i get products that suit my needs and i get back to business. Im val. The orange money retirement squirrel from voya. I represent the money you save for the future. Whos he . Hes the green money you can spend now. Whats up . Gonna pay some bills, maybe buy a new tennis racket. Hes got a killer backhand. When its time to get organized for retirement, its time to get voya. Its not just a car, its your daily treat. Go ahead, spoil yourself. The es and es hybrid. Experience amazing. When this bell rings. It starts a chain reaction. Thats heard throughout the connected business world. At t Network Security helps protect business, from the largest Financial Markets to the smallest transactions, by sensing cyberattacks in near real time and automatically deploying countermeasures. Keeping the world of business connected and protected. Thats the power of and. Time for street talk, Analysts Recommendations of the stocks you need to know about. Youre supposed to buy low maybe the market declined today. Its going to be an opportunity for sure the first stock, u. S. Steel, bank of america upgrading u. S. Steel to buy, raising the price target from 31 to 27 now steel prices have lagged, they actually think prices could surge towards 700 per ton they believe u. S. Steel is the biggest beneficiary of a rising commodity price forecast. Stock two, palo alto networks, august research up to a buy from the hold. A ramp up in product cycle and they like the addition of new services and recent sales and execution issues appear in the past got 183 price target on the name also today, Summit Research partners and Imperial Capital raised their ratings on palo altos next up home depot and lowes, this time, reinstating buy ratings on both of the stocks for home depot the analyst siz the stock is in a well positioned retail segment and thinks the stock will continue its solid track record analysts as well, when it comes to lowes, stock is under dog, but they focus on remaining the forefront of the smart home trend. Everything is on the smartphone, i could start my coffee maker with my smartphone because we need that. I do. When you get up for squawk box 2 00 in the morning, go ahead. Final stock, Formula One Group this is technically a Liberty Media name citigroup upgrading it to a buy from a neutral after few years of tepid avenue growth, 1 is accelerating. Stock is rising 39 bucks by the end of this year mini Liberty Media. Thats how he does everything like little separate companies. For tax purposes. They all go back to him oh. Back to you a genius is he all right, shares of u. S. Concrete of 14 in one week of 66 since the election well talk Hurricane Harvey and the president s infrtrtuasucre plan with the president of u. S. Concrete, next Financial One of the worst performers today one reason is the insurance stocks theyre having the worst day of the year check out ets tracking them down to 3 . As a new hurricane is bearing down on the caribbean and the mainland of the u. S. Demands for Building Materials is expected to sore and following the devastation of Hurricane Harvey and looking forward to Hurricane Irma. Joining us now from bill san brooke, all your employees are okay and accounted for yes, they are all accounted for. We had a number of employees who are affected though of significant housing damages but they are all fine and safe thats the most important thing and thats a good thing to here now lets get to the long process of rebuilding. What are you hearing of houston and other parts of south texas and louisiana. What is needed do you think there is going to be money i think there is going to be the money. I think there is going to be a lot of insurance proceeds and a lot of charity going on now from many Different Levels of government and the organizations and churches i think houston is going to get back on its feet it is going to take a while, flood water haves not receded. There is awfully a lot of homes impacted but it will get back on its feet for sure i wonder what you think of all the criticisms that we see laws of houston turning into too much growth and you built all these homes and grass land absorbs the water. Some people may target your industry and say youre part of the problem why this is so devastating. I would disagree with that. There is plan to growth. There is been a traditional under investment and structure thats the reason we are talking about 1 trillion bill is needed what is the biggest demand for concrete going to be is it going to be in enlarge buied buildings and road ways. Where is demand going to come r from there will be some road ways you saw on tv and some bridges affected the biggest is rebuilding homes with lumber and roofing and interior products. We are not seeing a huge surge of demand. It is too early to tell, flood waters have not receded. We are not thinking of a significant upgrade or uptake in demand in houston for our product. We are always talking about the disruption that comes out to Silicon Valley has there been innovation of concrete we have low carbon emissions. And our business is just lodgistic business competitors through gps track zg dynamic modelling of the routes that we use to deliver concrete. There is a combination of Product Innovations and delivery innovations. What about consolidation in our business both from u. S. Players and International Players . Are you expecting more of it . Absolutely. There is been significant consolidation earnings in the last 24 hours. But, Domestic Company such as ours as well consolidation is a way of the future our company have made it through the last recession, dont want to go through another recession and they are receptive to sell cnbc buyer spent a couple millions on his own. It is the highest price deal for a sport franchise, details ahead in the second hour of power. So if youre on medicare or will be soon, you may want more than parts a and b heres why. Medicare only covers about 80 of your part b medical expenses. The rest is up to you. 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Youll be able to choose any doctor or hospital that accepts medicare patients. Whether youre on medicare now or turning 65 soon, its a good time to get your ducks in a row. Duck quack call to request your free decision guide now. Because the time to think about tomorrow is today. Welcome to the second hour of power lunch i am Michelle Carusocabrera it is the most expensive deals in u. S. Sports franchise history. Cnbc buyer, buying the Houston Rockets for a record of 2. 2 billion what does it mean for the value of other teams one hint, more. This is one hot stock today, more than doubling well tell you whats fuelling that ride. The second hour of power lunch starts right now welcome everybody well are live at 2 00 in the east lets check in the markets at this hour. Stocks, of our biggest one day drop since august 17th, following north Koreas Nuclear test of the weekend. The dow is down of triple digits of june 27th of 21, 59 in change s p 500 right there, and financials and telecom, those are the worst performance today. U. S. Treasury, tbill is jumping, it is selling at its highest levels in nine years that chart did not show the actual level which is of 1. 3 . I suspect of oil showing a front month, it is not the right number there Goldman Sachs and United Technology are down. A lot of stocks are down we are covering it all for you with more on todays big drop. Seema mody. Technology and financials are lower. The yield as you mentioned is on track. Thats having a negative impact on u. S. Banks, Goldman Sachs is responsible for a quarter of a decline today. Bank of america is having one of its worst day in a while tech valley to a busy september. Traders here are focusing on the progress of debt ceiling and funding for harvey and upcoming Hurricane Irma and policies of the latest provocation of north korea. We a cancellations from harvey could hurt earnings. Take a look at Royal Caribbean and carnival trending as low today by as much as 4 down about 3 on average as analysts try to assess the damage what has been working is gold. It is now up about 10 over the past few months and trading at the highest level of this year the safety trade is gaining strengths copper and oil is higher on the back end of chie m china. Management remains optimistic on earnings now, there is a lot of times until the next earning season, right now the expectations is for a 7 jump in Third Quarter profit that could be what helps stocks Going Forward. Brian seema, well see you soon the dow and the s p 500 is falling below their 50 days moving averages as well. Lets bring in our tom and dan, the director of research. Scott and dan, first to you, are you surprise that the market is reacting this way. Are you surprised that the market is not dropping more given everything north korea debt ceiling fight and hurricanes that is going on . Well, there is certainly a lot to look at, we are not really that surprised. The market came into this correction today with issues and rent and thats participation and of stock levels and issues of volume. It was a challenge of a good deal of august and the fact that we came in today of this years Political Development does not surprise me. I think you can see escalation out of this front. If you think about it. We have not had a major correction in the stock market foreclose to a year now. We still dont have one yet a correction, thats 10 off your highs it is a bad day today. The worst than a few months of different sectors. We are nowhere near being 10 off our highs. Do you think thatll happen . I could not agree more. I do think it can happen the issue is, everybody is looking for the same thing, the market right now is climbing a wall of worries. We are looking at different triggers that can set the market off and thats the consensus cost the market is giving us this trade of higher, in september and october, there will be a period where we do see the flush out and kind of shake out some of the weak hands. I do think we can see a correction here between 7 and 10 . I dont think it is going to dismantle the broader secular picture that we have there do you agree . And if yes, we keep money out ton sidelines until the flush happens . The Fourth Quarter which obviously will be heading into soon tends to be quite strong. Industrials being one of those and we think whats going on in north korea is going to be a positive for a number of aerospace and Defense Company within the industrial sector industrials are usually connected to the economy and we see the yield for a flattening today. Is that just fears of north korea or that does not worry you of the economy overall we still think the economy is going to be strong we do not expect the session i dont think many people is going to expect the sessions on the horizon. The industrial sector does well when there is Infrastructure Spending and we got a budget of process thats been working this way where many people are expecting defense to be a priority we think it is a sector to be focused on a narrow way with some industry, yes quickly, toed, whdd, what wod make you change the view it is rhetoric right now and i think that the economy continues to move forward and we are looking for a strong earning season coming up in the Third Quarter and the fourth corner. Some of those things move weaker and well see more of a focus on the Defense Sector continuing. With yields just about and 2 , we think investors are taking on equity risk. We like healthcare thats partially defenses and the number of sectors are still under guidance dan, you get the last word, response to what todd just said. You know, i dont disagree that the market can turn higher here you know we are bullish on the market picture longer term over the next several years i would not be surprised to see the s p shooting well north. Thats based on a host of factors outside of a lot of the short term, geo political and the macro noise that we are dealing with the market goes there you a shake out period and needs them time and time again to reduce a lot of the excess fraud. In terms of sectors and leadership Going Forward, once rates are at the long end and pressing higher again, you can start to see the financials. Financial sectors still, main component of s p and making 13 or 14 i do like healthcare as well you can look at it as offensive. Thats one of the biggest bets for the next years ahead that index really is start breaking out last week so we think it is going to be a huge driver once the trend resumes itself todd and dan, thank you very much, we appreciate it thank you we have been mentioning the one month treasury bill, the option that happens about an hour ago the yield on that option soaring because the world was not a lot of interests it was at the highest levels in nine years what is that signaling lets bring in Steve Liesman can i get some numbers for context . Last week the yield was. 95 and now it is 1. 33 right whats happening is investors are shunning shows bills that come due around the time that the government is supposed to go out of money and shut down these are the highest yields that we have seen and the great financial crisis in other words, putting that, it is previous incidents like this when you have other things were not taken quite seriously. Have you seen a list of things that congress is supposed to accomplish have you seen the prior you can say eight years particular, the last eight years they did raise the debt ceiling. We did shut downs i am not defending the last congress this particular congress does not have a track record of getting things done. We can show People Treasury which are rallying if we were to show them this one month, it would be showing a sell off we would be running against Everything Else. I dont want people to be confused and they dont know what we are talking about. It is important michelle, the yield that people cared about are down one of a reason of concern about is the cost of harvey is out there and pending irma and affects on gdp Going Forward and you have the fed governor talking this morning, she thought maybe the last rate hike and if we did not get more inflation. Now, we have economic doubts coming in with all of that and that tends to lower. The ten years is 2. 1 does this harvey and likely hit for irma eliminate the chance i think it is a good point. It depends a little bit on how certain the Economic Outlook is. One of the things i am watching closely and i am watching the port of houston opens up thats important growth for america. Theyre not getting things in or out and watching the refineries. Jackie is doing a lot of that. This refinery is up and running. Along with production and refinery that stuff gets up and running quickly. Less economic effect and more certainty on the Economic Outlook. Well watch irma which is not the odds on forecast now and then some certainty over irma, over the effects of harvey and they could be back on track relatively quickly you have to say it stays the hands of the feds in september absolutely. The only question is december right now. And they have to get some inflation and certainty on the Economic Outlook the sentiment, is it in doubt . I would say very much thank you, steve. John chu is tracking our financial stocks absolutely. You know it very well, it is down 2 on relatively heavy volume today it is not over yet it is rapidly approaching 200 moving average at the average price trend line etf has not crossed that mark. Down below is july of last year, i got to give you some context around it. Everest group and xl group and bright house and assurant. They are all down. Well see if that etf can holdup on that trend line don, thank you very much here is whats coming up on power lunch after four Straight Record closing highs. Apples shares is pulling back today. Will that provide another jolt for the stock . Well hear from the ceo of a Company Whose stock is up more than 100 today. And the two billion dollars buyer, shelling out the most money anyone has ever paid for a u. S. Sports team can the values keep ongoing up all that and much more coming up on power lunch. This is not a cloud. This is a tomato tracked from farm to table on a blockchain, helping keep shoppers safe. This is a financial Transaction Secure from hacks and threats others cant see. This is a skyscraper whose elevators use iot data and ai to help thousands get to work safely and efficiently. This is not the cloud you know. This is the ibm cloud. The ibm cloud is the cloud for enterprise. Yours. The ibm cloud is the cloud for enterprise. Wherwhere we always welcome you, thats texas. Exas. Where we always find a way, thats texas. Welcome back to power lunch. Semie etf sinks gu guys, back over to you, guys stocks are getting hit hard today. The count down is on for the big event weeks from now apple has been a big star on the nasdaq up of 40 so far this year lets bring in gene with loupve hello lets talk about apple first what does the trading history of apple tell you what will happen to the stock after this big unveil or reveal next week is this. So the trading his strategtoh past four years is a little bit difficult to look at the biggest product cycle would suggest that you have typically a tail off and i would expect the same thing, think of a 10 sale off over one to two months. Investors have been investigating on the return of the iphones. People are going to shift their focus to march and june of next year thats when the iphone cycles are made or missed there is going to be some people taking profits the simple answer is if you put all the pieces to rgether, what does history tell us are there suppliers that would be an interesting way to make money. Are there second stage players here probably, most so well flushed out. Each time it gets more and more flushed out. The simple answer is this 3d mapping is three suppliers around that but there could be opportunities. This is the high end iphone proversion, the most part, probably one of the x factor on the supply side. There is an outside chance of the 15 they announced lte connected apple watch. That could mean that you have use of apple watch and taking phone calls without having their phones with you. There maybe something along. There is antenna app thats interesting. The lte that we are seeing on the upper left side of the screen means that it uses the Telecom System to work independently hence why you dont need the phone exactly the reason why it is an outside chance here is power issues are higher and so to try to fit that into watches is more difficult. We are probably anywhere from a week to a couple of years away of announcement. Thats one of the things we are looking for. Gene, are we going to see a thousand dollars phone i would think so. A high probability of that thats what we are referring to is the iphone pro. The magic number is 5. 8 which is the screen size verses your larger screen size iphone at 5. 5. It may not sound like a big difference it is a 10 increase of the surface area thats a form factor in a similar factor of the current plus size. What it means is that you get more screens for your size and thats the expensive one and 3dar technolo3 3d ar technology. Amateurs cannot afford that i am definitely a plus size the fast growing segment of Consumer Debt right now is phone debt because you are not getting subsidized by verizon or at t anymore. Dont worry mr. Matheson, it is not a thousand dollars it is 23 a month. Does that benefit apple . Huge benefit. They have this upgrading program, there is a free phone every year but when you go on and go to napa store and go online, thats what the monitorly paymemonitothly payment is that and this higher you are going to look at 20 a month dirc difference kind of like leasing a car. If you can afford the payment, you buy the payment all right, gene, thanks, appreciate it. Well hear from the ceo whose stocks are doubling today. You can see s p 500 right now is a sea of red. More on the market sell off when power lunch returns. I switched to tmobile, kept my phoneeverything on it oh, they even paid it off wow yeah. Its nice that every bad decision doesnt have to be permenant ditch verizon. Keep your phone. Well even pay it off when you switch to americas best unlimited network. People dont invest in stocks and bonds. They dont invest in alternatives or municipal strategies. What people really invest in is what they hope to get out of life. But helping them get there means you cant approach investing from just one point of view. Because its only when you collaborate and crosspollinate many points of view that Something Wonderful can happen. Those people might just get what they want out of life. Or they could get even more. What they want out of life. Not rebalancing your portfolio. Pursuing your passion, not reacting to market downturns. Focused on what you love, not how your money will last through retirement. Let us help you with those decisions, and get on with your life. We make it easier to plan for retirement with day one target date funds from prudential. Look forward to your 401k plan. Have you seen this today insmed doubles all right, guys, talk about a results. Now, that stands for non we spoke with the ceo, willow wallace about it tod lewis today many patients have intense cough and debilitating illness preventing them from going on of their normal life. The goal of treatment is the eradication of bacteria that gets rid of the disease. It is always important to talk about side e dpeffects one of the main side effects that Patients Experience here was respiratory irritation as they inhale the drugs. Side effects were found even between the arms of the trial. As a result of those inhale and respiratory irritations, it is important to know that the side effects are staying across them does it cure it well, what they were looking at here, whether they can kill this bacteria and now what the ceo is talking about there, 29 patients man knowledgaged to gef the bacteria when can it hit the market . Potentially in the 2019 okay, thank you well, call him the 2. 2 billion buyer, cnbc tillman bought the Houston Rockets for a huge price well give you more after this i count on my dell Small Business advisor for tech advice. With one phone call, i get products that suit my needs and i get back to business. What . Pony neighing] hey gary. Oh. Whats with the dogsized horse . Im crazy stressed trying to figure out this complex trade so i brought in my comfort pony, warren, to help me deal. Isnt that right warren . Well, you could get support from thinkorswims inapp chat. It lets you chat and share your screen directly with a live person right from the app, so you dont need a comfort pony. Oh, so what about my motivational meerkat . Inapp chat on thinkorswim. Only at td ameritrade. Some things are simply impossible to ignore. The strikingly designed lexus nx turbo and hybrid. The suv that dares to go beyond utility. Experience amazing. Your insurance on time. Tap one little bumper, and up go your rates. What good is having insurance if you get punished for using it . News flash nobodys perfect. For drivers with accident forgiveness, Liberty Mutual wont raise your rates due to your first accident. Switch and you could save 782 on home and auto insurance. Call for a free quote today. Liberty stands with youâ„¢ Liberty Mutual insurance. Hello everyone, i am sue herrera, floridas governor rick scott is telling residents to p prepare for Hurricane Irma category five storm path is not clear. He has declared a state of emergency for the entire state we have no idea whats in store. We have to pay for the best. The hope would be going out to the atlantic but we got to prepare for the worst. Russian president Vladimir Putin condemning north koreas latest test and also warning against the u. S. And the country saying it can lead to a globalc globalc globalcgloba global lego posts its First Sales Decline in 13 years. The company has not suffered a revenue decline in 13 years. Welcome back sue, thank you very much. We are 90 minutes now financial the worst Performance Group today is Goldman Sachs nvidia and apple the oil market is closing for the day. Lets go to Jackie Deangelis at the cnbcs desk. Almost a 3 move on the day sessions high 48. 98 so testing that level but not able to break it four main reasons that we move higher today perceive demand returns, post harvey, refineries getting back online and weaker dollar contributing to this as well. More conversations of extending the opec cut everyone is looking at irma to see where it is making land fall lets take a look at our prices, because you are seeing it lower, rbob gas prices at the pumps have spike 2. 64 cents. Thats up 30 cents in a month. Consumers are feie feeling that at the pump. Of course, if irma worsen the situation, it can be prolonged at this point. We are watching crude 49. 63 jackie, for more on todays mark sell off, lets bring in cnbc, our director with oneill security gentlem gentlemen, i will begin with you. Those are the tales there. Whats going on today . Listen, by the looks of it. If you look at the independenxef the screen, it looks like the market is getting crushed. With 250 points s p 500 is down 50 . There is not a sense of oh my god and the market is ready. It is just a realization that last weekend went into a long weird and the market did not respond to what happened to north korea and over on friday they had all weekend to dissect and talked about it and what is the next stepme a lot of the rhetoric got the market nervous today and with trump eliminating the daca rules and what that means and all the outrage you are hearing from tech company and all the people thats standing up outraged he would do such a thing. We a in september now and we got a lot of moving parts and i think september is setting up for a weak month it is interesting you should say that i will turn it to you, peter, looks like the market may have hit abbott there at 1 00 and losses have been mitigated a little bit can he touch on a lot of things thats part of the tabloid what are things that are you watching closely now as a tale of what stocks may do. Remotely impossible to imagine, so i really dont have a lot to say all right i will come across with something. Now, i think that the situation of north korea, it is still developing and i think thats going to be a longterm situation. I dont think thats going to be anything like, you know, we hate to see these hurricanes happen and we hate to see the damages that it causes the u. S it is a longterm fix. The market should react to be those particular events very short terms. I think this is something that we have to keep an eye on and i have been saying it for month and i am keeping a close watch on it. I do think that it is not, i dont think anybody has a solution i dont think north korea has an idea and the u. S. Does i think this is one of the things that makes you feel a little bit uncertain about the direction of the market for the short term longterm, i will be bullish and going into 2019 and 2018 this is one of those events where we are still seeing what happens and whatever happens is not good so there is a big rally going on in treasury yields are dropping a lot it is hurting the financials do we read into that buying safety maybe north korea and look to that is that telling something of the economy of something bigger or fundamental to the markets happening. I think it is both. There is definitely that flight of save to trade happening recent actions may have caused damages to the economy there is questions of where is the economy is going are they going to be able to raise rate and really start to shrink the Balance Sheet if the data continues to deteriorate. Therefore, i think thats why you are seeing action there as well as safety i think it is a combination of both the vix is up 30 . 13, is the vix still in measure of anything . The fear is at 20 or 30 and given everything thats going on right now. I agree 100 . I think that people are starting to not look at a barometer it is a trading vehicle and i dont think it is being used and i dont think it is being looked at in that longterm market direction type of instrument i think people are trading it and they are trading it for short term and if you lose money, you lose money. Short term gains, everything in the vicks, Going Forward of a bigger type. Another option. Nice win for your volunteer, peter. Man, squeaked it out. Thank you speaking of sports it is the most expensive deal in u. S. Sports franchise history. Cnbcs very own billion dollar buyer, tillman, you see him here on power lunch. He bought the Houston Rockets for a record of 2. 2 billion what does it moo ean for other sports team . Well take a look at sports next where the heart beats warm and true, thats texas. Where we always welcome you, thats texas. Where we always find a way, thats texas. Cnbcs multi billion dollar buyer, tillman is the soul owne of the empire as well as the Golden Nugget hotels and casinos. Dominic chu has more on this record deal. Lets put it in context. It is a big price tag to put in the franchise. We know they dont come up for sales often. Lets put in some of the biggest deal that is we see for total ownership. Malcolm blazer ba glazer, he took the whole thing over. S same thing with the nets buyer mikhail prokhorov. Dodgers 2 billion, you know that one with magic johnson, came up big for that deal and la clippers, he paid for that franchise and Houston Rockets. A question mark because it had to pass through some of the nba hurdle hurdles. Nfl franchises, they dont come up for sales often and number six, the Buffalo Bills tobacco ov back over to you tillmans deal of the rockets rippling through the market. Take a look at shares for madison garden the stocks is up today with this deal, every teams value should rise and joining us more on what this means is forbes executive. Thank you for joining us makiewicz c we know tillman well we are friends of tillman but it is not a softball. When i see billion 7 for the nets did tillman gets a bargain for the record several years from now the recruit is a fair price. What you are seeing is the nba is doing an excellent job of growing its businessin china that figure is growing in the double digit range we are seeing the nba is doing a good job of growing not nba businesses gaming is the future of big source of revenue. What this deal does is it shows the continued trend of the huge evaluations for big market teams. You mentioned the clippers, 2 billion multiple revenues and same thing here with the Houston Rockets. You go back a few years ago, the atlantic hawks, and bucks only around five times revenue they were trading for you will see the trend continue. Is that because o f the tv rights or real estate. When i look at the clippers, staple center, they shared that with the lakers ochlt t, the toa center in houston is right downto downtown are you paying the state and getting the Basketball Team with it hes getting the right to operating that lease you mentioned television rights, they got a 2. 6 billion annual deal with the nba which is in place for several years. But, where we are seeing growth is in streaming. I think the nba where teams control their local tv rights streaming is going to be common increasing valuable source for revenue. It is not going to be a High Percentage of total revenue but it is going to grow rapidly. Theyre going to tie in streaming locally with expanding as the leagues streaming rights it seems for a long time in china. What i am seeing amazon paying rights for unexclusive games. Does it matter how well the tea performs it seems like you have the regional monopoly and it does not play well and it did not matter i think it does in a certain extent you have james harden signed for a longterm deal this is a term key operation in houston. You are going come in and making a lot of money if you go over to the Miami Marlins in baseball, thats a billion dollars sale price and thats a team where owners will have to come in and kicking hundreds of billions of dollars over the next few years to turn that team around this is you mentioned the knicks, they are unique, they sell out every game despite having a particular good team. Thats really being charitable i am a snicks fan i can tell. The awkwardness of the timing of this transaction coming in as it does on the hill of the big storm last week and hundreds of thousands of people are suffering there. How does that and the fact that people are going to be focused on getting back into their house and rebuilding and so forth. How is that going to affect attendance and the gates potentially over the next couple of years for the rockets games i am an optimist. People look to sports for entertainment and a mean to escape daytoday work life or other difficult things i dont think the horrific storm happens down there is going to have a negative impact at all on the rockets. I think this is a franchise thats going to do very well mike, thank you very much. Appreciate it thank you september is traditionally the worst months for stocks. Todays big seller is only the beginning. Trading nations is next. Integrate any part of your business, and have your systems work as one. The ibm cloud. The cloud for enterprise. Yours. The cloud for enterprise. And i am a senior Public Safety my namspecialist for pg e. My job is to help educate our First Responders on how to deal with natural gas and electric emergencies. Everyday when we go to work we want everyone to work safely and come home safely. I live right here in auburn, i absolutely love this community. Once i moved here i didnt want to live anywhere else. I love that people in this community are willing to come together to make a difference for other peoples lives. Together, were building a better california. The White House Briefing wrapping up just a short while ago and a lot there on the agenda there is also a big meeting in just over an hour on tax reform. Eamon javers live in washington. Hi, eamon. Reporter hi, tyler, youre right. Sarah Huckabee Sanders wrapping up here at the White House Press briefing a few moments ago and defended the president s decision on daca Immigration Reform saying ultimately the president wants to make a decision with compassion, but in the end she says you cant let emotions rule the day. Ultimately the congress is going to have to be the entity here that pulls together Immigration Reform and a comprehensive ray and the president wants congress to take action that adds immigration now over the next six months to a very crowded legislative calendar up on capitol hill which also includes tax reform which itself is a big and tricky political deal in the offing we know that the president is going to be meeting with the socalled big six here at the white house in the next hour or so to talk about tax reform and see what the path ahead is up on capitol hill and the white house saying its up to congress to do Immigration Reform and tax reform and a whole bunch of other issues that well see on congressional plates in september. Guys, back over to you. Thanks very much. Apple ceo tim cook emailing employees about dhaka. Deirdre bosa here with the details. Hey, mishel, thats right tim cook tweeting moments ago saying dreamers contribute to our companies and Communities Just as much as you and i. Apple will fight for them to be treated as equals and sending a letter to employees obtained by cnbc let me read you a few key parts of it. I want to assure you that apple with work are members of congress to work with a legislative solution that provides permanent protection to all of the d. R. E. A. M. Ers in the country and hes working with each of the coworkers to provide them and their families the support they need. Apple has 250 or socalled d. R. E. A. M. Ers. Cook has been vocal loading up to this. Thanks very much. Stocks and your money are sliding today r. More losses ahead in the seasonally soft month of september lets ask our tom brady team, ari wahl and mike, what do you think, the beginning of something bigger or a shortterm swoon based on the headlines i think were due for a shortterm swoon and ill tell you why. On average each year in the stock market we have three 5 corrections and we do have one 10 correction, even in good years, so when you look at this year, we havent had any of those right now at all, so were due for a little bit of a pullback, not a crash, but a pullback you look at the market t. Trades at about 18 times forward earnings on top of that we have a debt ceiling limit we need to talk about, heightened geopolitical risk, and all in all it wouldnt surprise me to see a 5 to 10 correction in the near term, and i would just be wary of putting fresh money into the market. Why mike, why more to you . Why would you be war if its going to be a shortterm swoon wouldnt you be buying into a weakness that will become strength buy low or sell high. I would certainly be buying, but i dont know if i can time it close enough. When hi say i would be wary i would not sell anything in my current positions and if i had president bush money to put if i would wait until we saw a 5 or 10 correction and i think well see one of those in the next couple of months. Ari, what are the charts showing, just a little blip or rollover charts are suggesting just a blip here. Yes, indeed on the surface, september has been worst performing month of the year, but if you dig a little bit closer and incorporate trend into, it what youll find is that returns in september actually marginally positive when the s p is above its 200 daymoving average versus meaningfully negative and all those weak sense, theres usually weakness going into that we dont have that right now seasonals are secondary confirmation to us more importantly for us is we dont see the place for a major market top in particular, the advance decline line made a new high with the s p as recently as late july what we found is that measure usually peaks on average six months before the s p 500. Until we have that, we see this as a healthy bull market indeed, we agree market timing is tough and wed rather be buyers of the pullback rather than trying to time it. Watch the advanced decline line gentlemen, thank you both. For more trading nation a reminder we do two additional segments every day at tradingnation. Cnbc. Com all right check, please is next. And now the latest from the tradingnation. Cnbc. Com and a word from our sponsor. Daily Price Fluctuations of individual stocks can offer trading opportunities. However, if youre unhappy with your returns while trading actively consider taking smaller positions over a greater investment time frame. Evaluating trends over multiple weeks rather than hours can help nstelyer locate more coisnt tradeable trends while possibly trading less frequently for your heart. Your joints. Or your digestion. So why wouldnt you take something for the most important part of you. Your brain. With an ingredient originally found in jellyfish, prevagen is now the number one selling brain Health Supplement in drug stores nationwide. Prevagen. The name to remember. Hey, hows it going . Um. Who are you . Im val. The orange money retirement squirrel from voya. I represent the money you save for the future. See . Were putting away acorns to show the importance of being organized. Thats smart. Whos he . Hes the green money you can spend now. Whats up . Oh you know, gonna pay some bills, maybe buy a new tennis racket. Tennis racket for a squirrel . Hes got a killer backhand. When its time to get organized for retirement, its time to get voya. When this bell rings. It starts a chain reaction. Thats heard throughout the connected business world. At t Network Security helps protect business, from the largest Financial Markets to the smallest transactions, by sensing cyberattacks in near real time and automatically deploying countermeasures. Keeping the world of business connected and protected. Thats the power of and. My check, please, getting the first signs that the markets may be nervous about the debt limit not being raised the onemonth tbill auction that happened today. The threemonth chart shows you the steep rise in yield. 19. 27. It did go as high as 1. 33. Want to show you a full screen of why 1. 27 sounds like too much the onemonth tbills due coming up in the next few weeks look at the yield for september 28,. 16 and october 12, 1. 22 and back down in november. Its not lack of sell, lack of buying. Just ignore it, and then the yield goes up until someone finds it interesting my check, please, has to do with airmana, a category 5 hurricane. Sue herera reported 185mileperhour winds. A lot to think about human life, a toll, harvey, irma and jose. From a financial standpoint, if youre Royal Caribbean and carnival crowds lines and youve got a crews the next couple of weeks, think about it. These stocks are down. Obviously this is going to be a super dangerous storm. Very real implications, but im sure businesses large and small like the crowds companies are thinking about this as well. They will have to forgo revenue for a long time. And Insurance Companies is the next sort of page of this story and those stocks are down today as we look back. Why dont we put that map up again. This is different than the hurricane last week which was largely a water event. This one sounds like it will be a real, really serious wind event that could affect the insurers more than the water event, flooding uncovered in many areas expects by the federal Flood Insurance program. Its going into the islands and bearing down on the Virgin Islands which may get hit very happen, puerto rico, the dominican republic, haiti. The last thing haiti needs obviously is a category 5 storm. Yeah, something to watch for. Its a very scary and serious situation, guys. Thank you. Thank you all for watching power lunch. Closing bell starts right now. Hello, everybody, and welcome to closing bell. Im kelly evans at the new york stock exchange. And im bill griffeth. Good to be back together. Nice to be back together here finally. Summer is over, and 9 selling has bug. Investors getting concerned about the Nuclear Threat from north korea, concerns that tax reform can be further delays i mean, theres a whole list here that we could go through and we will go through. Just about the only thing to smile about is this reunion. Yes. Everything else is gloom and doom and can you see that across the markets