Move and letse1 get a check on where we stand with the markets on this first trading day of september. The dow is sinking, but just off the lowse of the session. R the s p 500 and nasdaq also under pressure the trade sensitive small caps are down by almost 2 right now, and take a look a shares of boeing the big loser today. The stock down nearly 4 oncons that new e1delays could keep it grounded through the travel season okthanks. As new tariffs kick in, President Trump is warning china to make a deal now or else it will get tougher after he gets reelected lets get to Kayla Tausche with the latest on these trade tensions kayla. That warning this morning comes as no date is set for the next round of talks between the u. S. And china and after a call thursday where china said it was making progress onw halting fentanyl shipments and asked u. S. Officials for relief on tariffs. President trump plowingi aheadn the tariffs on sunday, on 112 billion in chinese goods followed by retaliationniby beijing on 75 billion in u. S. Goods. Those tariffs from the u. S. , im told, could have beene1 higher after learning of uhinas retaliation a couple weeks ago, President Trump wanted to double existing tariffs at which point treasury secretary and the trade sector ceos to warn the president of the impact. According to three people wit o knowledge of that eeffort by late that friday, the president had tempered his hike to 5 . E meanwhile, china continues to pull out its own policy tools, filing wto complaints, lowersjf consumer prices, and easing regulations so shoppers go out and still spend money. Whether those efforts can be effective until the 2020 election remains to be seen. 5 melissa. Kayla, thank you. Us dom chuxdis at the stock exchae following the sell off as we talk about the way the trade story is developing, its always certain sectors and stocks that are in focus when the trade relations become a real issue if you look at the overall indic. Uz have been hovering around these levels for just about thelp bulk of the day outside of the first couple hours of trading taal] was down about 425 points at9 the lows of the da so were not far from there, but a bit of reprieve. Around the 2900 level. Its still around thee1 52week average remains. If you look at the sector, outperformers and underperformers, a sea of red, but not everything where defensive sectors like real estate, like consumer staples, utilities, carrying thee1 upside momentum if there is any out there. Meanwhile, financials and industrials are thexdones weighing the most. Now, when it comes to the dow, we talk about the same stocks often. When it comes to u. S. china trade. Those stocks again are to the z rj news about t their relations there, but still, e1boeing, a more trade sensitive stock. aey get a good amount of business in china. n caaq pillar, 3m, apple, all tn ue stocks down w2 or 3 at this stage as we wait to see how these they for traders and then the flight to safety, gold, we talked about it all year. Traders have beenok bidding up e price of gold. Theyre doing itn again today gold future is up almostj 15 meanwhile, the gold miners etf, up almost 2 there. O and newmont mining, up 1. 5 as well so melissa, kelly, it plays out in a riski] averse kind of way, the same stocks, sectors, and havens in focus. Thanks very much. Sment is typically one of thelp worst months for the jfmarket. With the trade dealxdnowhere in sw , athis theo start of september swoon. Let me bring in tom cli, and Quincy Crosby is chief Market Strategist withw3prudential financial. What domwas sayinghut gold, gold and silver have done well, and now today, more weakness in sorry, more strength in i expect that trade to continue to shake out . Well, you know, youve got a lot of retail buying into gold that could get s because remember, whenc you have retail buying of golt ascoopposed to institutional buying of gold, theyre the weak hands so any sense that the dollar weakens, any sense that the treasury yields inch higher or any headline, by the way, on tariffs that actually sja down and get those guys out of that trade gold gld, in myt portfolio. We have0l had that for some ti as auhedge. Its geopoliticale1 concerns its tariffe1 concerns, equity selling off concerns, and one other. Have thetf ceremonial season the world will be buying gold. Perhaps a little too expensive now, but they buy gold for the wedding season its retail buying of gold and very strong. So tom, to quincys earlier point about there being a lot of sort of hot money in gold or in Precious Metals right now, where else do you see thate phenomen . ne sudden shift here . I mean, i think there are markets that kind of lit up this year you know, gold definitely seems like one because its been working as a hedge i do think therese momentum behind longterm bonds i think they have been moonshots this year, and its incredible fall further, you know, we could see someajf mas moves in u. S. Treasuries i think thats another place where were seeing momentum trades, but you know, do these things stillx. if wee have resolution with china . Im not sure people dont seem to bef mean, i dont know how you possibly bet onqthat outcome one way or another, have we gotten any new information in the last couple weeks that tells you,i yes, we have to be nimblejf and ready to forw resolution or does it seem like the president is in this for thee long haul d is not about to pull surprises out of his hat i think the stock market is telling us something thats kind of interesting we had some really negative and deteriorating and scary headlines and the s p has kind of hung in e1there i do think theres underlying resilience in the equity markets, but i think the reason its happening is one is china is adapting to this through currency adjustments and i think u. S. Companies are really starting tojf handle this throu moving the supply chain. I think maybelp the damage to s profits isnt going ton be as scary as people nthink. As we see the tenyear yield go to 1. 44, 1. 43, and possibly lower, is there a point ato whh you say valuations are not q . Thern is a line in the sand, so to speak, which lower rates mean bad things for the economy as well as stocks absolutely. Well get a better sense of it with the isme service sector, well see whether that moves below 50 it hovered justnrabove 50 well see about hiring expectations and new orders. If we see a edeterioration in e labor market, hoursc niworken ape recession, whether it mattersw3 this time, money coming into the treasury market and pushing yields down further. I would think the concern is this all eventuallycohits the consumer which has been the American Economy then services contract, and at what point do you gete1 concern 70 of the economy wont be there . The consumer is caught with sort of two headwinds and some tailwinds. The headwindt is the confidenc and i think every day they see these headlines about recession risk, its going to makezthem cautious but in their actuale1 pocketboo lower Interest Rates meanse lor mortgage costs, lower debt service. Its stigq y how many more people are going to refinance how many peopleq i mean, at a certain point, theyre not going to get lower rates and banks arent going to keept lowering rates. They cant make money. Just, you know, it was ny4n even 15e1 years ago when people said it was a mythical rate to have a sub4 mortgage 3 , and look, if rates gete low enough, what happens if theres a 0. 5 30year mortgage theoretically, i think it would be have very big positive effects. Ih 0nk the Banking Industry just fell out of its chair listening to that idea as you know, in o0italy, for how thexl1 lower rates have be source of Wealth Creation in countries thyt1 have benefitt from it. One nice correlation for the market for investing is the lower prices at the gasoline station. Nice correlation with fast food. You go and fill up, you hav 1 money left over, youre going to go to the next drivethru, maybe not walk in and exercise, but were seeing that positive correlation. X gasoline prices aret attractiv unless youre in california. Fast food, theres some place to watch, and they have done so well this year thanks really appreciate it after thrashing the bahamas, Hurricane Dorian is aboutnr100 miles off the coast of florida o now. It has weakened to a category2, but there are Big Questions about what its going to do to the carolinas. C avaup clie he storm. Thanks, kelly new video that was just shot by cnbc. Com Airline Reporter leslie josephs, who flew . q the air the video once we get up, youll see really e1amazing footage we have we can hear from her as well the sky opened up a little bit. It was not y well formed as th day before, which is part of the reason why the winds were slowing and we saw the downgraded forecasts for the and you can hear she was jus saying really an amazing flight you saw that blue sky, that is the clear area, the benter of the storm, and then the eyewall, the most powerful part of the storm. Lets talk about that because we have the latest updates with i dorian the eye itself not quite as discernible because the winds themselves are starting toe weaken the wind field, the extent of how powerful it is, has expanded, but thee1 winds arent as strong. And starting to finally move to the northwest at 5 Miles Per Hour check out the latest track forecast for dorian. Youll see its holding on to a category2 strength as it continues to move northward through today and right into by thursday, though, cutting close to the carolinas notice that cone of concern does cut over both South Carolina and North Carolina and thats t v bigw concern it maytn only be 15 to 30 mil off shore,n meaning big storm surges of 4 to 7 feet are possible as well as heavy sas lets talk about the heavy rain and the forecasts we have currently as we move forward. W not just for carolinas but across the entire region, what tat lets see if we can pop that up for youe1 and see. Bahamas picking up in some areas up to 30t inches of rain ealr. For florida and georgia, 3 to 6 inches and for the carolinas, 5 to 10 to oke1compile with other forecd problems like storm surge and those Hurricane Force winds. Back toe1 you. Thank you coming up, walmart taking a major step to pull back on gun sales. Well have all the details and were watching a big selloff on wall street. Industrials the worst performer sector financials down e1. 5 energy is also lower the worst xperformer in the moh of august. The only negative sector so far this year. Coming up, well talk to the former ceo of bp, lord john browne ayitusst wh lunch. U5iqannouncing plans to haf ammunition for shortbarrel rifles and handguns. Stopping sales of handgunst entirely in the state of alaska the last state with walmart shoppers to no longer openly carry firearms in stores 1 s Andrew Ross Sorkin wrote ane1 on letter calling for him to take action against gun violence. Andrew joins us live on the phone. Great to have you with us. Thank you i thinkl most people say th is a step in the right direction. It seems fairly narrow, though, from what youre calling for in your column. What is your assessmen up until month and a half has grappled with tunwilling to do so in pubc the bigger issue ise1 lesso1 a what theyre doing in stores and more about what it sayse1 about the debate in washington if you understande1 what Doug Mcmillan is doing today, hes publicly steppinge1nto the aren on the issue of gun violencee america. He is writing letterse1 to thec president , hese1 writinglp let to congress. He is advocating not just for what he is doing inside his own stores but for ac larger debate rgton on this issue virtually, everyn ceo i have talked to since i bega coverin this about ayear and a half ag and really advocating strongly for more sensible approaches to gun sales in america, and let me be clear,xdi have never my argument is never been about stopping sales entirely. Its about saying point blank that we have a problem lphere. And that theu. Laws as construcd today dont work and effectively Doug Mcmillan has now saide at is thak case. Having the largest retailer in the countryt say thate aout l may give licenseo to other peoe who have thus far been unwilling toe talk about es discussion, and when you think about allw e over all this time, the Business Community has largely stayed out of it, out of fear and i think that today, the importance heret of what may be changing, the tipping point, is actually the licensew that mcmillan is going to give any about this whats the nextt7 domino, your view, andrew, in terms of mcmillane exerting pressure on overf ceos . Could it be the banks falling in line as well, not providing financing for purchasing of guns thus far, bank of america, citigroup were the first big banks to step out on this issue in terms of providing financing to gun manufacturers not to customers or to credit card networks. The question, of course, is whether the Banking System is going to get interested in this issue. Its goingn to start thinking d the credit card industry start thinking about reasonable steps they could take to create a fkd possible i also think youre going to see them talk about this in washington you know, for so long, for so many years its been the nnranrversus ve much lesserok funded organizations. Teqjrk that you the Business Community and Corporate America say you know what, this iscoactually somethg that impacts us, the same way, by the way, they stepped out in the past year on issues like immigration and sot many other things this was consideredfa a third rail, but maybe now its not the bigger issue is ceooks going to washington from allc walks life talking about this issue and putting pressure on lawmakers in a way you havent seen before. At least that is my hope thats my optimistic take on you wrote this open letter at the tbeginning of august, andr, and im wondering if you ever thought there would be policy changes at the stores this quickly. I ask you this question because im wondering if you think that perhaps the next step is that walmart could actuallyn put pressure on the gun makers themselves whiche is a step you called for in the letter that they perhaps could exert their leverage on the gun makers to say, make guns with fingerprint technology, for instance ho you know, one of theni6g; tha has gotten lost in todays announcement is doug hast offed to offered his compliance system that walmart uses currently, which by the way, we should say is best in class. Walmartcodoes not deserve the criticism to some degreew its of thee most responsible selle of guns today, and they have offereduneir compliancet syste and programs for free to other retailers around the country i think thats an important and interesting first step, and where that may go, again, you talk about exerting pressure on manufacturers, on other retailers,8aqfinancing and Banking System i think this is going to give rise to some significant changes both in the private sector and also in the Public Sector and that public debate in we appreciate it thank you really appreciate it coming up, boeing, the single biggest culprit in todays selloff, costing the dow about 80 points as delays to get the 737 max byin the air threate to get longer. We have l e glalthanes covered stay with us Office Drones were the way to do it. [ laughing ] drone voice lol. Our market share looks good, but. Drone voice where are the bagels . Well, cdw can help you modernize your company the right way, with a scalable infrastructure from hpe, making you more efficient and secure. Great. Oh. [ drones buzz angrily ] lets find a different room. For transformation that works, you need Hewlett Packard enterprise and it orchestration by cdw. People who get it. Welcome back to power lunch. Im mike santoli at the New York Stock Exchange boeing, one of the worst dow stocks today following reports its 737 max may not be cleared for flight by the Holiday Travel season shares now down more than 20 from a march record high so how do you trade this Aerospace Giant right now . Lets bring in your trading nation team today. Todd gordon and quint tatro. Todd, we mentioned 20 off the high, but the stock had such a huge run going into that peak and has really traded swooi sideways for a while how does it leave you in terms of discerning the trend . The first thing ill bring your attention to is relative performance of boeing to the etf. We have seen some underperformance but a bit of a hookup. Though industrials are underperforming, were seeing boei boeing, which is the largest component, pick up were messing around with this 200day moving average on the next chart, maybe well get context as to where we could buy this a beautiful up trend as you mention eed correctly, michael. A huge massive gain. We simply digests the gains. We have a low of about 290 right here i think theres real value here, which is also comprised of the Blue Parallel channel. If we can get something below 325, the risk is quite low for a potential move back to the highs. I dont say write it off yet quinn, would you be looking for an opportunity in this as well on one hand, its hard to happy cap how the 737 issue and the china stuff is going to do, on the other, its a global duopoly and this company has an order book for years ahead no question, and thats what investors have to be sort of aware of and really not get too blindsided fundamentally, the stock is very attractive unbelievably strong Free Cash FlowBalance Sheet is strong. From our vantage point, theres too many head winds with not only the 737, but 14 of revenue still from china even though its 20 off hikes, this is a no touch for us here, and investors have to be very, very careful thinking that this is, you know, buying the blood in the street, and it could go a lot lower. So even though the fundamentals are attractive, its not that attractive for us just yet in a way perhaps the stock has held up too well for the real value buyers to start getting aggressive well see how that plays from here todd and quinn, thank you. For more trading nation, head to our website or follow us on twitter. Thanks very much. Ahead on power lunch, we continue to monitor the selloff. The dow falling 425 points at the lows, and yields continue to drop well get the traders take. Plus, oil is down more than 2 and Energy Stocks have sleeping deeper into bear market territory. After the break, we sit down with the former ceofo bp, lord john browne, to discuss whats happening to the sector. So. How are you feeling . On a scale of one to five . One to five . Its more like five million. Theres everything from happy to extremely happy. Theres also angry. Im really angry clive actually, really angry. Thank you. But what if your business could understand what your customers are feeling. And then do something about it. Turn problems into opportunities. Thanks drone. Customers into fanatics change the whole experience. Alright who wants to go again . I do i do i have a really good feeling about this. Welcome back, everyone im sue herera heres your cnbc news update at this hour. 34 people are presumed dead in the california dive boat fire, and the search has now been suspended. The bodies of 20 victims have been recovered and divers have seen between four and six others in the sunken wreckage, which must be stabilized of the 39 people onboard, five crew members jumped in the ocean and were rescued Vice President pence urging ireland and the European Union to negotiate in good faith to reach a Brexit Agreement that respects the uks sovereignty and minimizes disruption to commerce he made the remarks at a News Conference with the irish Prime Minister i can assure you we will continue to encourage the United Kingdom and ireland to insure that any brexit deal respects the good friday agreement. We urge ireland and the European Union as well to negotiate in good faith with Prime Minister johnson. The Iranian Oil Tanker that was recently seized near gibraltar has gone dark, turning off its transponder. Its at the center of a dispute between the u. S. And iran. Youre up to date. Thats the news update this hour back to you. Thank you very much, sue herera lets check on the markets the dow is down about 350 points 75 poins points off the lows s p down 28. Nasdaq down 105. Theyre down 1. 3 , the worst performers for the major averages the sectors. The worst performer today is the finances declines led by the reej nn banks and the etf that tracks them down more than 2 all get hurt right now the worst. The oil market is closing for the day. Lets get to eric chemi. Thats right. You can see the red behind me here for Wti Crude Oil prices definitely under pressure, but bouncing back from the worst levels of the session. The demand picture getting hit by a onetwo punch first, china targeting crude imports in the latest round of tariffs. The first tinal the commodity has been targeted in this long ongoing dispute, and following up it with manufacturing data that renewed concerns about our weakening global economy, and add to that apecs crude production rose this year, and thats giving traders a negative outlook on oil right now eric chemi at the commodity desk energy the worst performer sector in the last month, down almost 9 , and the only sector in the red for the year. This as cride proiss sink. Our next guest is a power player on the energy space. Joining us is lord john browne, former ceo of bp thanks for being with us when you take a look at what is going on with oil prices and oil stocks we mentioned the stat for the month of august. The oil sector on the s p 500 has lost almost a quarter of its value over the past 12 months. Is that right for the sector are investors missing something in your view sentiment certainly has changed on the price of oil. Although having said that, the fundamental indicators are reasonably strong. But sentiment is very negative about demand so but infantries are really in pretty good shape. So we have to see what happens small changes will make big differences to commodity prices. I think stepping back, though, the oil sector always needs to be very careful about the level of investment it makes and the cash returns to investors. And investors are very sensitive to that. When they see Oil Companies spending too much money, they expect Oil Companies to waste too much money there was a wall street journal article saying 26 u. S. Oil and Gas Producers have filed for bankruptcy this year when people read that line in that story, you think of the last oil downturn. When oil prices were so low, and it really had an impact on credit overall are we at that point now no, i mean, oil prices are reasonably strong. These companies are heavily leveraged, and Oil Companies who fail tend to invest in the future, and the future never comes. So its too much reliance on expiration, too much reliance on the price of oil or natural gas rises. And so we see these Smaller Companies filing but the Big Companies are in pretty rude health, i would say at the moment. They have done quite a lot to themselves to keep pretty strong speaking of root health, youre here with the british buck is below 1. 25, and help us navigate the latest round of brexit headlines because its headache inducing to follow, but all of a sudden it looks like the new leader may have lost his parliamentary majority what are you following how are you going to figure out whats going to happen in the next couple weeks . I decided i follow it closely, and the more closely i follow it, the more confusing it is theres important posts that hold the tent up one is the nation voted to leave, whether you like it or not. I dont like the idea, but the nation voted to leave. Secondly, the Prime Minister we now have is determined to get us out of europe on time, and thirdly, many people in parliament are saying our role as mps is to stop it happening abruptly so were seeing a game taking place now. Its a very dangerous game do you have any feeling for how its going to turn out at this point no, i dont, because every time i make a forecast, it somehow goes wrong today, just now, the speaker of the house of commons is going to permit a debate on whether the mps in the house can stop the government taking the country out on a socalled hard brexit wow so this is all uncharted territory. Our country, the uk, is very different from the United States in that we dont have a written constitution we have a constitution which depends on people, quote, doing the right thing. And if theres small changes in behavior that isnt what it is, the socalled right thing, something goes wrong i think were seeing some of that happening now what do you think the impact of a hard brexit would be, not just on the uk but also on europe well, i think it will be very damaging its clearly a loss of Economic Activity quite how long it lasts remains to be seen whether or until you couple it from a slowdown in the world economies which is taking place now, partly to do with trade wars but partly because its that time in the cycle so its difficult to say, but i think well see a slowdown and this will accelerate it. If we see an accelerated slowdown and we have already seen pmis, for instance, in retraction in uk and europe and japan, in many countries at this point, what does it do to how you think about the price of oil . So, oil, of course, is highly dependent on demand, but its even more dependent on supply. And of course, the supply is variable because most of the oil in the world is not actually supplied by the United States. Very important supplier, where the free market works, but by many statecontrolled enterprises. And statecontrolled enterprises have different agendas for example, im sure that saudi arabia, if they would like to get an ipo of saudi aramco off the grounduld have to think hard about where they would like to see the prois offile. They just made changes to that effect today. These are typically huge moved, to see them take a guy out of a leadership post, and there was not that much attention paid how much clout has saudi lost if any in your view. Its difficult to say, but i would think they have been very clear. They would like to do a form of ipo, a form of financing with saudi aramco lets see if they do that, and theyre clearing the decks to make that happen are you basically saying opec is going to be the backstop or put it floor in for an oil price . You know, opec, we have declared the death of opec so many times and its still alive and well. So opec plus russia is a very important controller and that will happen the other thing is i think we all get carried away with supply everyone thinks it all goes north. I think the permian is a very important basin, but i would expect the rate of growth of the permian to come down considerably we should mention while youre here, you have also written a book, your fifth book, in fact, make, think, and imagine just came out in the u. S. Last week you do have an optimistic point of view on the future. You say look, engineers and that brain, those solutions, can solve a lot of our problems. Can they solve brexit . Can they fix whats going on in the permian . What do you think here they can certainly start fixing climate change, thats for sure, because i think when you start looking at all the tools and techniques weve got to reduce Carbon Dioxide, we have everything we need, all the engineered solutions are there we just have to put them in place, which means we need incentives so carbon taxes, for example. We need to get those through otherwise, were going to see Carbon Dioxide go up and temperature rise to a degree to whereas we dont want to see i think engineering always produces good results and unexpected, unintended bad results. No one expected to produce all the co2, for example no one expected the convenience of opening your phone with your face to be something to be used to survey people that you dont want to see. So but its normally the case that injury produces great futures, sand what you must not do is stop engineering it seems to create its own job security it does, and also it produces generally a better world if you think of the world, our world is cleaner, better, its more educated, less people starving, and healthier. And health is a really important thing to engineering, then you need more engineering, not less. Okay. Make, think, imagine is your book it hits u. S. Shelves today lord browne, thank you for joining us to the bond market now. Rick santelli is tracking the action at the cme with some headlines today. I tell you, some headlines are that we went into contraction mode in the ism number this morning, and boy, you could really pick it out on a chart. Look at an intra day of the twoyear that swan cliff dive, that was 2 00, down about 5 basis points. 1. 478 is the current yield close. Were challenging that same move at 10 00 a. M. Eastern, current close at 1. 47. Were challenging that as all maturities are. A twoday of italians, tens under 90 basis points. A country with the economy of italy shows you how upside down the world is in Foreign Exchange markets, dollar suffered also at 10 00 eastern, but since its still up on the day at all, its new record territory for a 28month high, and if you look to april of 2017, that was the last time the dollar index had triple digits at 100, and many traders believe with big demand in the dollar global, theres a good chance it will happen again. Thank you very much tech tumbling today as a new round of tariffs kicks in. The nasdaq down more than 1 coming up, well speak with the head of an Industry Trade group that represents apple and thousands of other companies dat do they want the president too about china . Stay with power lunch. [leaf blower] you should be mad at leaf blowers. [beep] you should be mad your neighbor always wants to hang out. And you should be mad your smart fridge is unnecessarily complicated. But youre not mad, because you have e trade which isnt complicated. Their tools make trading quicker and simpler. So you can take on the markets with confidence. Dont get mad. Get e trade and start trading today. Dont get mad. Thats what happens in golf nothiand in life. Ily. Im very fortunate i can lean on people, and that for me is what teamwork is all about. You cant do everything yourself. You need someone to guide you and help you make those tough decisions, thats Morgan Stanley. Theyre industry leaders, but the most important thing is they want to do it the right way. Im really excited to be part of the Morgan Stanley team. Im justin rose. We are Morgan Stanley. Welcome back stocks are sliding today after new tariffs went into effect this weekend, and tech is taking on the trade war head on the Consumer Technology association, which is a trade Group Representing over 2,000 companies, released a Statement Today condemning the tariffs and also calling for congress to take action against the trump administrations decisionss gar president and ceo of the Consumer Technology association. Gary, youre asking for a tweet. Im not asking for a tweet. What im asking for is some reason were asking President Trump to put down that smartphone, which we love, and start getting to the negotiating table. Because hes promised us now for over a year and a half this is just a short tf term thing, and we have gone along with it, not happily, of course, but he keeps increasing hes increased tariffs so much, now on almost every product that consumers are going to feel it in fact, business is already feeling it wall street journal today reported small businesses, almost half of them, are pessimistic about the economy. Because of tariffs so you guys say the tariff, the new tariff list taxes consumers on 52 billion worth of their favorite Tech Products including tvs, digtt cameras, bluetooth earbuds, smart watches and fitness trackers whos going to absorb the price increases . The consumer or the manufactu r manufacturers like apple glitz rr certainly not china, but the manufacturers like apple and best buy and so many others, theres a negotiate there. Everyone is trying to do the best they can to cut costs and respect the fact that consumers are price sensitive, as they should be, but President Trump is forcing us into a recession were feeling it in so many different ways across many categories its hurting American Companies and it will be the trump recession and potentially the trump depression if it goes this way. Thats what happened 90 years ago with smoot hawley. The last time we put tariffs on a whole range of products, it led to the Great Depression and we suffered for years. How have your numbers dealt with the numbers that have gone into effect on sunday. Thats what we saw with the threat of the border tax well, black friday may be dull friday with these tariffsf landing. So essentially, as of a couple days ago, theyre in effect for the new products coming in for the very important fourth quarter. And you know, they just jumped up two weeks go from 10 to 15 . Some are going up october to 25 . Theres obviously going to be price increases. Theres an estimate by the congress now that this is costing the average American Family several hundred dollars and prices are going up for all americans on a range of products so how are we reacting its somewhere between shock and disbelief, and every two weeks its a new tweet, a new uncertainty. It was mexico for a couple weeks. Now tariffs on everything, the components affecting great American Companies and its affecting Business Confidence and the stock market look whats going on today just to put a fine point on the question, youre saying nobody has pulled forward inventory in anticipation of the tariffs going up the tariffs were set to go up several months ago, but there was a new tweet a couple weeks ago saying it wont be 10 , it will be 15 . Theres october tariffs as well. In anticipation of these long known deadlines when youre shipping bulk product across an ocean, it takes months to prepare. There may be at the fringes some accelerated shipping, every company has its own strategy, some believe for a while it never would happen well, its happened and its having a huge impact and affecting not only this industry, affecting retail, consumers, and several Different Industries obviously, its affecting the economy. Were seeing the signs already in so many different ways from slower car sales to delayed car payments to all sorts of things where were seeing a slow down in the economy just before we go, when you come out so strongly and call it the trump recession, do any of your 2,000 members push back and say we support the president more than youre making it out youre right on saying we support the president s focus on china, but he has many other options he can do. He pulled us out of the us out Transpacific Partnership he is pulling us out of the World Trade Organization he hasnt done other things he could do he hasnt gone to reciprocity and go to partnerships, requirements of laws they could follow. He has other alternatives but tariffs are the worst alternative. Theres one economist who thinks its a good idea and sadly he is in the white house with the president today. Thank you for joining us today, gary shapiro. After the break, well get the traders take. We call it the mother standard of care. Its how we care for our patients like job. His team at ctca treated his cancer and side effects. So job can stay strong for his family. Cancer Treatment Centers of america. Appointments available now. Doprevagen is the number oneild mempharmacistrecommendeding . Memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. Welcome back we got news alert out of washington, d. C. On google whats happening more than two dozen states attorney general are planning to laumpl an antitrust investigation into google. Theyre expected to make this announcement september 9th about state ags involved with texas taking the lead and it is a bipartisan effort. We were expecting some news this month after state ags met with the Justice Department earlier this summer and of course it comes as the doj and the house ub Judiciary Committee launched an investigation. Now states looking to move forward with an effort multistate antitrust investigation into google on september 9th. Back over to you. Thank you we are seeing alphabet shares at session lows right now the dow down more than 300 points u. S. 10year yield touching multiyear lows. Jim, great to have you with us it seems like weak economic data, resparked fears of recession, same we have seen it play out before. Sure. Theres an added element it is clearly two things trade and that crummy ism number today. Theres also a report by Morgan Stanley that people talk about on twitter how they dont believe that the stock market can be saved by lower rates so i think thats nonsense. Just begun the fed is just beginning its easing cycle starting if two weeks. I think it can be saved by that. Technically the markets trading around 2900. If we finish above that today, i think the market will come to its senses, realize that low rates are somewhat of a panacea to markets not saying they are for the Macro Economic conditions. I dont want Rick Santelli to jump down my throat here but the fed can save the day. I get that but seeing yields dip, we saw the 10year yield go to break 144 which is last weeks low, you know, all bets were off on the equity side of it when do markets realize lower rates down at these levels are still good for valuation thats a good question. I think its relatively soon i think the pace we get to the rates is important, too. It feels like theres panic in the year then risk assets are hit trading sidewayins at a 145 levl for a while then the market realizes what are we supposed to buy . You get pushed into risk assets and will continue that way. Jim, thank you. Thank you. Check please ines xt at Southern New Hampshire university, we believe in education built for all people. [woman] snhu was the best experience of my life. [man] without snhu, i wouldnt be the leader i am today. [woman] i graduated high school 19 years ago. I still finished. [man] in the military, you feel that sense of accomplishment. Thats what snhu is. You will march from this arena and say to the world. I did it. [woman] you did it. I love you. [graduate] i love you too. Welcome back one of the movers to watch today is boston beer, ticker sam we had the ceo on last week and they said theyre tripling down. Bill tooka sip of the seltzer and the reaction was basically eh. Maybe thats why the stock is down nearly 7 in the session today. Wasnt exactly a ringing endorsement, i guess. He said as people pointed out it is not sweet. It is a very kind of bitter its seltzer in the point its neutral. So i hear. In terms of the market today, seems like a real sort of battle between the belief that there is no alternative and when you have a low rate you have to go into risk assets and this belief that Morgan Stanley is putting forth that with low rates theres support for valuation, that you should have higher valuations because the rates are so low is there a line in the sand . How low is too low how low is things are bad in the economy and thats bad for stocks, as well . We went under 153 today thanks for watching. Closing bell starts right now. Welcome to closing bell. Im Morgan Brennan in for sara eisen. One of the biggest losers in the dow today on report that is the 737 max fleet may remain grounded until 2020, Broader Market down more than 1 59 minutes left of trade well tell you everything you need to know today. Yes, we are, morgan im wilfred frost. Lets look at whens driving the action weak manufacturing data here in the u. S. Fueling concerns and hit stocks. Trad