Transcripts For CNBC Squawk On The Street 20240714

Jobless claims, lowest since april. The president agreeing to a twoweek delay on the tariff pause. Plus, the ecb is launching a new bondbuying program. Could it impact fed Decision Making until the next week and as the democrats get set to debate tonight, Elizabeth Warren propose ago sweeping increase in Social Security benefits financed by taxes on wealth the president delaying the imposition of good will tariffs. All of this coming ahead of planned meetings between the u. S. And china in early october. Earlier on squawk, the treasury secretary described the state of trade between those two countries. Weve had a series of principal level conversations. We have a deputies meeting planned in the next two weeks where the chinese will be coming here and working on material the vice premier coming here at the beginning of october to meet with ambassador lighthouser and myself we look forward to making progress over the next few weeks. Set tariffs could go up, they could go down. Hes looking at the 50year bond potentially next year. Right look, the president is banking on not just a very big ag purchase, but more than that the chinese telling the wall street journal they want to limit this to just trade good luck. The chinese are so misjudging the president. The president is a much harder line than they realize hes not going to cave because they order a lot of soy or pork because they havent been able to get the swine flu under control. Although he does seem to be focused on it. Talk about the farmers, its coming and when he didnt, he seemed to get very upset about it, as well he said if you dont come through, we are going up there and remember, this last round of tariffs, that was that fabled friday he was angry in part because the chinese put tariffs on the imports from the u. S. And they did not follow through with it all. Im thinking that secretary mnuchin represents one side of the white house. The other side of the white house wants to know, look, when are you going to stop secrets . When are you going to stop with what way the hawk eats the dove in the end. Mnuchin said hong kong would be the be part of the discussion, but your point is huawei needs to be yeah. Just because bolton is gone doesnt mean there arent hard lines. The hard liners are saying very specifically you cant delink foreign policy, military issues from trade you just cant thats a pipe dream of the chinese. The chinese are always regarded at face value and our president is regarded as material. I think the chinese are trying to get away with as much as they can. The president is more consistent than people realize. I think the bar is high again. If the chinese do not come through by october 1, i think youre going to see hes going to put those tariffs on and he may do it during that grace period were not the ohm game in town no. But this swine flu is underestimated and i say that because i know the guys at sowetas. Theyre trying so hard to solve it and they cant. This is a crisis of huge proportions of china huge eaters of pork. So they need our pork they need our pork. So if they dont start ordering our pork, we know they are you dont seem particularly positive on prospects for the next round of talks. No, im not look, this is not even accept and verify its literally, you know, you guys have just dropped the ball, the chinese, and i dont think theres anything going on. I say this by the fact that this reprieve, the future jumped really big and then they pulled back entirely. So, no, i just think the chinese better do something and do something fast and not just pork. You saw the journal story about them want to go separate from other issues, huawei or hong kong or National Security they cant. Peter navarro will come on to our network and say the seven sins of what they do i heard him talking about them on squawk thats the president s view thats the president s view, navarros view the president s view is not mnuchins view the treasury secretary is his own man. But i really feel the president thinks these issues are one and the same and i think the chinese think were idiots, bone heads, even senator warrens comments are not i dont hear her trying to save the family farmer. Shes trying to tax people who i think have room to be taxed. Oh, i said it. Youre saying the farmers are a subset of the wealthy . No. Farmers are voting for trump no matter what. The president is not sitting there thinking, well, i need them to put a soy order through to win iowa. The president is going to win iowa his base the base trouble versus base. Can there she is, Elizabeth Warren, talking about her new plan to increase Social Security benefits by i think 200 shes using the realistic wealth for people in the country except if you live in new york city right with a 14. 8 levee on incomes above 250,000 or 400,000 for a couple in Investment Income and another, she would increase the cap. So right now your Social Security tax, your pay is capped at 250,000 which youre paying into Social Security that would go up, come in at 14. 2 . If youre living in a high tax state or city where you are no longer able to deduct your state and local income taxes and this tax burden would be added, im not sure what your actual take home would be, but it would be a lot less youre going to have to move to tennessee is my suggestion or florida. For me, im going to be soon at the 60 tax level which means i start making money for myself. But i do well so i dont care. The way that we are busting the budget, it is pretty funny that the democrats are far more conscious of the budget than the republicans. Well, you survived the salt limits, people moving to florida out of high tax states already so maybe you can survey jive more yeah. I can survive. When you say on this network that you think its okay to pay more tax, there are people who are angry at you. But i am very lucky. Ive done well ill pay more tax. We know where marginal rates have been historically there were so many loopholes back then. Do you know when you say johnny, do you know who that is . Johnny unitis Johnny Carson his pop culture knowledge is weaker than my friend erin burnetts. Look, i think warren versus trump is just the dialogue now and there is a debate. Shes behind biden in the polls. Biden is still well ahead of her in the polls is he yes not kidding warren is i dont know warren is front and center on all the issues that we talk about. She retweeted us for a second straight day i think the lead at drudge was wall street she must be stopped. Thats what they say to me over and over again. There are people who say, how can you put her on how can you put her on sheegs a senator of the United States of america. Shes a serious, rigorous person you bet she is. Smart as a whip. Strong characteristic for people who achieve things. And you will say she is rigorous she tweets and sends you position papers. Shes not calling anyone a bone head, by the way despite the fact that you brought this line to the conversation that were looking at right here, you have a spot spot for her, it seems yes because because i think she has thought about the people who are doing not well in the country and that that is great. Can you say yet, would you vote for her i dont talk about who i vote for. Ive been pretty split who i vote over time if you want to look at my record. Actually, right down the middle. Sorry. Its become a big part of the conversation now and it will more so again if, in fact, she becomes frontrunner or she is to pick momentum up. Becomes but it will play into this larger conversation were going to have that is ongoing about the changing face of capitalism. Yes it goes back to the business round table and the rise of efg as a real focus for investors. And its real, i think what is the role of society and what does it this letter from ceos she is at the forefront of asking those kinds of questions. The letter from ceos on gun control. Wealthel tax on people who make 50 million do you think people who make 50 million will be hurt by that its 2 above 50 million. Those people do great i dont when i get there they can afford it is what im saying they dont feel like they can afford it. She came on mad money and she revealed a series of things and she said what do you think of them . I said i dont know, they seem reasonable she said its exactly what reagan wanted. 14. 8 on Investment Income if you earn more than 400,000 . Why not are restaurants and hotels exempt i dont give a darn why is Investment Income tax lower than the hard working ordinary people. Some say that is why there has been a divergence in income inequality alternatively, we have a president who is not talking about indexing them to Capital Gains to inflation although not any more yesterday he came back out so im confused nancy pelosi is right down the middle i remember when she was a bomb thrower. Shes now the most consensual tip oneill like person in the house, in the country. In the country no single payer for her. Cvs stock up today why . No single payer. Larry moistuerlot. Yes when i speak to ceos after the camera is done, they say, listen, what are you hearing about warren weve said the same thing its true they dont say what are you hearing about biden. Nope. That matters. Shes part of the discussion by the way, this conversation right here is now a podcast. You can listen to us in the opening bell hour squawk on the street. Were going to get stopped trade, jim in a moment dont go away. Were going to do the mad dash now. Jim, are you ready can we do this now of course i can do it now are you kidding me well do it after the break theres a look at futures. Oracle. I was going to do oracle back in a minute. Tell him were flexible. Dont worry. My dutch is ok. Just ok . in dutch tell him we need this merger. in dutch its happening. just ok is not ok. Especially when it comes to your network. At t is americas best Wireless Network according to americas biggest test. Now with 5g evolution. The first step to 5g. More for your thing. Thats our thing. Were got 13 minutes before we start trading here. Oracle reported earnings, also some news ceo mark hurd. What is your take . The Analyst Community is always bias against a company that is nongap13 , 14 , buys back a lot of stock. I think the quarter was fine that is the problem with this company. The quarter is fine. They always find something to pick on. By the way, ellison was back on the call talking about a big win versus work day on mcdonalds. That was the major take away that was one of the headlines. Huge problem. Mark hurd is the aggressive, not just front man, but the guy who drives sales were not sure about what is the matter with mark we wish him well, obviously. Taking a leave of absence shes brilliant has been there for quite some time the chairman he is brilliant yeah. Geez. But theyve had an unusual organization with these coceos and i just think hurd is the public face of the company i dont know i think hes one of the reasons why they have a lot of big wins. Larry elson is an amazing person and any tells in terms of spending no, no. You cant get a read ibm, theres these companies that people just dont talk about. Intel went from 48 to 53 poem don people dont talk about these companies. They care about zendesk and zscale, its an octo market its incredible what people care about now. They care about cloud, cloud, cloud. Ellison has always tried to inject himself and say weve got a great Cloud Business but i demand respect for ellison. When you go out to silicon valley, there isnt a person that doesnt think ellison is a genius hes back in his mid 70s but hes in his 40s, as far as im concerned. We wish you well if you ever Say Something bad about oracle, hurd hears it and hes in your face. Lets get in a break here as we count down to the opening bell, we are going to keep a close eye on smile direct. Selfie generation that is not necessarily meaning its going to be up sharply, but its going to be positioned to go above where its priced. Everything comeins a box a lot move squawk on the street live for you no two patients are the same. Predicting the next step for them can be challenging. Today were using the ibm cloud to run new analytics tools that help us better predict and plan a patients recovery. Ultimately, its helping thousands of patients return home. Return home. Here i go again on my own goin down the only road ive ever known like a drifter i was born to walk alone . Barb you left me hangin on the high harmony there. If you ride, you get it. Geico motorcycle. 15 minutes could save you 15 or more. Smile direct is getting ready rtoing the bell this morning. Keep it here indistinguishable muttering that was awful. Why are you so good at this . Had a coach in high school. Really helped me up my game. I had a coach. Math. Ooh. So, why dont traders have coaches . Who says they dont . Coach mcadoo you know, at td ameritrade, we offer free access to coaches and a full education curriculum just to help you improve your skills. Boom mad skills. Education to take your trading to the next level. Only with td ameritrade. Youre watching krncnbcs squawk on the street. Theres a lot to cover today theres the chinau. S. Moves, these good will gestures we talked about, the president s reaction to that, arguing that the fed didnt say bone head today, i dont think, but he did say the fed needs to cut i think europeans need to be careful. The president is no fan of murkel they could be next if they continue to make it so that the euro is being faced, they ought to be very careful. I think the president is itching for something against them he does not feel the old youve been saying that for a while. Oh, no, hes very upset with the germans. So i think that theyre playing with fire if they continue to go down this path i dont think youll call draghi a bone head. He wants our fed chief to do exactly what draghi is doing, just say in step the problem is they have no growth whatsoever. So they have to do something we have some growth. So i think that when we hear all these discussions about where our rates are going down to, remember that when Draghi Draghi is trying to debase the euro hopefully the business gets better i dont know that business is so weak to china. Europe is so linked to china thats one of the reasons why you never hear them doing anything i think the big test case, by the way, is more london. London Stock Exchange by Hong Kong London Stock Exchange rejected it but would the london Stock Exchange be built by communist chinese. The london Stock Exchange wants to become more of a data provider, but its interesting and its the last chance to buy the lse and break the definitive deal and consolidate exchanges you see their strategy of farm lets say foreign aid, you see theres signs everywhere belton road in english, right in our faces. But i think you have to recognize that they the chinese are so close to europe versus us, we are not part of the equation when it comes to europe because we are not pro europe the reaction to draghi at least was brief. I think the entire german curve is back into negative territory. Lets get to steve and talk more about what he said he said negative rates are a he necessity and he went more into the necessity range there they cut their benchmark rate by another 10 basis points to negative 0. 5 they add 20 billion euros of quantitative easing on top of that he said the easing is in response to a lower inflation, weaker economy he said we see persistence of Downside Risks and muted inflationary pressures, as well. They downgraded the growth outlook. He was asked about the president s tweet, which you guys were just talking about let me play for you what he said the answer is very simple we have a mandate. We pursue price stability and we dont target exchange rates. Period carl, i dont want to make jimmy angry over there, but there are some people who say if draghi is not targeting the exchange rate, then what does he plan to have happen as a result of more negative Interest Rates other than the currency weaken carl so what happens now we declare them a manipulator, jim . It has to do with tariffs look, part of the conversation, youre talking about china with the white house. What have they said . Hey, dont forget the germans. Dont forget bmw just be aware, draghi, thin ice. Thin ice draghi. Well, hes done, anyway that is true. Legardes problem now steve, thanks. Talk to you in a little while. Steve liesman, lets get to the opening bell, s p 500500, on the big board, celebrating the network at the nasdaq. As we said earlier, the smile direct club, consumer medical Technology Company celebrating its ipo today. Original range projected in at 23 this is incredible because this is a company that is valued gigantically its goes up against invisiline. This is a do it part of a subscription economy basically and everybody who has had kids that have been using invisiline, the kids are happy they tend to be instagramaholics. But this is distranscriptive to the industry there are orth dontsicodontistsg me right now saying this shouldnt be allowed it is kind of do it yourself. Yeah. They take pictures. Then they make the molds and then you have a box that spits out every week or whatever it is a new one to address the gaps in your teeth or whatever it might be what worries me is why is the market going nuts for this one is it a revulsion . Is it a stretch to put it in your ulta estee lauder portfolio . No, its not a stretch. I think millennials love straight teeth genx, straightener. By the way, you go to europe, they could use this. United kingdom, holy cow they need they come on its no longer austin powers smile direct uk would be a killer by the way, moving on to ipos that are to come, this will set a tone and if its a positive one, it can only help even the weak company oh, david, youre taking that leap of faith . Im just saying great top of market. Im telling you top of the world, ma. Not necessarily i can see you betting warmer to it at 15, 16 billion where would that be for uber . And when adam gets ahold of you and does the mind melt on you, it would be like where is that company yeah, i guess so. Well see its going on be interesting two weeks from today, maybe. The last time i was with newman, i was with david blain youve taekd about that two magicians, right . One guy is able to get 40 billion and the other guy is able to put a card in your mouth and know what it is. Able to lev tate. Ose and blain are not of this world. Blain says you believe in me more than i believe in me. I said absolutely. Blain is incredible. Hes out of this world nor is newman. We havent talked a whole lot about cpi today. The biggest jump in 11 years there is a fed meeting in which people are looking for a cut what in the world is jay powell going to do . Well, i think that, boy, is he in a hard spot here he does want a little bit 06 inflation. Lets not rule that out. I think powell is capable of saying, lets wait, which would be devastating to the stock market no cut . Do you think no cut next week is possible honest to god, you call the guy a bonehead and he cuts thats just a license to call the guy sparky call him double bone head and then you get 50 basis points you cant with the fed chief. You are insulted daily on twitter. You had a reputation beforehand of being a serious individual. Do you just say im going to secede to his bone headedness . He took rates too high thats what the president s view is not what the numbers are right now. Its just that the rates should have never been too high versus the rest of the world. I think the president is right the president is right on that if that is true, where is the bleed through from those hikes the last couple of years stocks are at a record jobless claims are rock bottom the labor market is tight as a drum people feel manufacturing thats trade, isnt it . Yeah. If he wants to win the trade war, he needs the fed on his side he says is communist chinese of Central Planning, we should have Central Planning its all for one and one for all and he has a bonehead at the fed who is trying to exercise independence that is where he is coming from. He does not want the chinese to win because the bonehead fed chief is saying, hey, listen, i know i raised it too much, but the heck with you. The last i heard, ear not a centrally planned economy. The president wants a little Central Planning you bring on larry kudlow and these other people, theyre not going to abdomen describe to yo your viewpoint about Central Planning the president will. We have two central planners we have the president s central plans and then we have senator warrens central plans saying the rich people are paying too little thats true they come back to the responsibility of the corporation. The margins do get squeezed a little bit, but youre helping overall. They have more in common with each other than they do with nancy pelosi goes to reflect the craziness of our Political Climate right now, i think tonight is a private company. I love their clothes im trying to look a little more youthful what goes on with them is its all sustainability it fixes you almost is that a youthful move it fits you now i had it tailored perfectly win suit david, you know your house, your apartment . Excuse me your apartment. Yes this is an apartment. And you think senator warren shouldnt tax more im wearing an apartment im taking 210 of that suit right now. This is seven times the counted of that kmart suit youre wearing i didnt know k smart still made suits. I didnt know k smart was still in business. Is that part of the lambert collection oh, that is this is a nice suit, i think. Ge, guys, not doing anything today. 2. 5 billion in u. S. Dollar aggregate purchase price, 4 ge company bonds. All of this, of course, part of the companys attempts to delever, particularly its industrial leverage target net debt over ebitda and now they are making this tinder for up to 5 billion dollars. They got money from baker hughes a lot of people feel oracle should be delevering faster. Mark hurd is really important to that company. He wins a lot of business head to head. Earlier, i misspoke that the people in the uk are able to get smile direct they should get scholarships and some sort of subsidy because they need it more than americans. You have no plans to visit london anytime soon. Love london do you think that theyll really . I mean, youre going with the oldest joke in the book, my friend the cat skills where are you headed im going to fly over to london boy, my arms are tired look, james bond had great teeth. That is true. Jim, we havent talked a lot about this momentum shut this week jpm argues that its been largely technical so far, but it could be followed by an upturn in the business profit cycle reminiscent of 2016. Are you in this camp yi am i am there is a vegund. I want you to watch cater pillar and deere. A guy who does a lot of solid work when it comes to how those respects are doing if those stocks go down and stay down, then people who are buying these stocks are going to get in purpose when they have the earnings look at 3m run isnt that something what does that mean i think tusis got too negative on stocks, even though hes correct on some of the facts. He has to get more on the stock pit. Ge is moving up. 3m is moving up. Its not too late for him to declare victory. A lot of that apple is the belief that the apple plus is going to have some great entertainment. Youre just baiting david now. Okay. If you say so. They can afford it. They can. They can afford it and over time i would assume theyll spend more and more and get deeper and deeper in and probably have a platform that actually offers you a variety of different concepts. Its going to be amazing. They know customers better than anyone weve got to go to bob. Walmart is near a record high and we should mention unlimited grocery delivery. They can that, kroger. 98 a year. I want that remember, this is the word plan. You let the guy in to stock your refrigerator i would like that. I would like that service. Take a look at that 25 . You dont have to go out at all. They come right to your refrigerator you dont have to leave your apartment. Right thank you for reminding that. The suit is expensive not because of your apartment. Ive been happy there i live in this you live in that i live in there. You live in that . You do actually do live in it never takes his tie off. Never whenever you imagine hicall, watching those of those binge tv shows, hes always wearing that suit. Absolutely. Its more comfortable than wa j pajamas. We did hit 3,010. Were up and were very near new highs. The question is how much life is left in this rotation rally weve been talking about with the rotation, its been going on for a week now. Its longer cyclical stocks. Retailers had a great week up 7 . Energys had a great time. Industrial is up 3 or 4 . Can it continue . Lets look at whats leading and lagging today. We talk about retail banks energy guess whats lagging retail banks and energy. This tells you were running out of steam industrials on the flat side again, this has been the sort of leadership route in the last five days. Where are we lets look at the checklist where were at and why did this happen why are we getting this rotation weve had trade talk momentum. Weve had Aggressive Central Bank action. We set some decent expectations of Aggressive Central Bank action decent Economic Data and basically the concerns about recessions have receded a little bit. They could come back, of course. What does that all mean . What has this all led to number one, weve seen bond yields lifting thats probably the most important thing. That happened gwennibeginning lt thursday lets go long defensive names, long Consumer Staples and utilities and rates. Lets short big cyclicals, the big retailers, the industrial names, the bank. That crowded trade has unwound its healthy for the market to be balanced. Weve seen good internals. Weve seen low volatility. High pessimism i think that will reverse. This is a good overall scenario for the market heres the problem look at the sa p 500 now were back to that old argument its really pricey. 17. 1 times forward earnings right now and thats the way the market looks whats the multiple for the market right now to get this, to keep this up there, you cant just have crowded trades unwinding you cant have a bunch of Short Covering thats going to run out of steam and may already be running out of steam you need to see some real improvement. Thats why im hardened by the Economic Data. I think its still pretty good youre going to need to keep at least some decent Economic Data to see this going. Let me move on and talk about the ipos because i know were going to have the head of smile direct on. We have been upsizing these ipos i wanted to talk about caterpillar. The biggest call of the day is on caterpillar up, down, up, down on trade talk that call by wells fargo saying weve gone far enough and weve talked about whats going on demand likely to decrease off peak conditions in the United States thats an important call thats a fend mentundamental ca. I think thats the most important call of the day. Three upside ipos this week. You know about smile direct. Well be opening very shortly. 19 to 22 here. Its pricing at 23 upsize there how about all this talk about some of the big ones out there look at this, 31 to 35 a few days ago its pricing at 39 on the nasdaq today finally tomorrow were got cloud player this was 10 to 12. Its now 12 to 14 is the price talk we havent got a final price on that the point here is, carl, ipo business is still very high. Back to you. Absolutely. Thank you, bob speaking of which for more on smile direct club, lets go to bertha at the nasdaq. Carl, its going to be a very busy morning here with two big ipos both of them upsized. Bob was mentioning smile direct. Direct to consumer teeth straightening aligners visiline is the big competitor it did price above the range its going to give it abou in addition to smile direct, also got of course invisiline has suffered its not been a very being mover. Some of the suppliers in the dental market like dentsply and henry schein this is a gene sequencing company that makes technology for gene sequencing. Also priced above the range. Its going to have a better than 3. 5 billion valuation were going to have a very busy morning over here. Back over to you. Thank you very much, bertha. Today we are remembering the life of Legendary Oil tycoon t. Boone pickens. He died yesterday at the age of 91 we talked about him before the top of the hour. I was reminded of his decision to move his childhood home back to his ranch where he will be buried he wrote about that online earlier this year. But what a life. Oh, jeez. This man led many lives. I remember hearing him in 1984 when i was in law school he was a raider. There were people who felt he represented the worst part of capitalism by the end of his life he felt he represented capitalism. He wanted to put people to work, make them Energy Independent he never lost one thing he had from the days i met him, he was one of the funniest ceos just had a grand time. Whatever he did, he had a blast. He led his life to the fullest got to love him. Very much so and was in great physical condition, actually, very late into his 80s as you can see there, that was some time ago. That was eight years ago. And then led the charge on natural gas and sort of energy independence. He had an ad campaign for it but it outurned out he drnidntd the government american industry did it when we started doing 18 Million Barrels a day which is what were going to be doing in five years, look at that man. He believed and one other person believed. Not to mention the hundreds of millions of dollars he donated to oklahoma education. Yes it reminds me of ken who has done so umuch for bucknell. They just support their school how fabulous is that t. Boone pickens, long friend of our network were going to miss him. Passing away at the age of 91. Well be right back. Tell him were flexible. Dont worry. My dutch is ok. Just ok . in dutch tell him we need this merger. in dutch its happening. just ok is not ok. Especially when it comes to your network. At t is americas best Wireless Network according to americas biggest test. Now with 5g evolution. The first step to 5g. More for your thing. Thats our thing. By the way, shes the it wasnext mozart. G day. As usual we were behind schedule. But sophies enthusiasm cannot be dampened. Not even by a runaway donut. We powered through it in our toyota prius. Because a stars got to shine, no matter what. Its unbelievable what you can do in the prius. Toyota lets go places. But were also a cancer fighting, hiv controlling, joint replacing, and depression relieving company. From the day youre born we never stop taking care of you. When i needed to create a better from visitor experience. Improve our workflow. Attract new customers. Thats when fastsigns recommended fleet graphics. Yeah, and now business is rolling in. Get started at fastsigns. Com. I need all the breaks as athat i can get. Or, at liberty butchemel. Cut. Liberty mu. Line . Cut. Liberty mutual customizes your Car Insurance so you only pay for what you need. Cut. Liberty m. Am i allowed to riff . What if i come out of the water . Liberty biberty. Cut. Well dub it. Liberty mutual customizes your Car Insurance so you only pay for what you need. Only pay for what you need. Liberty. Liberty. Liberty. Liberty. For farmers here, this is our lifes work. But when a recall happens, perfectly good food goes to waste. Now, weve got away around that. Looks good. Were on target. Blockchain on the ibm cloud helps pinpoint a problem anywhere from farm to shelf. Its used by some of the biggest retailers everywhere. A nice wedge. So more food ends up on your table, is that daddys lettuce . Yeah. And less food goes to waste. Paypal youll see is up big. What was happening at paypal absolutely nothing its all part of the rotation into regular banks paypal being the best example. Now that everything is reversing, you expect to see lots of the bank stocks go down and that money just keeps bouncing around. Jim, whats on mad tonight . Ive got two of the hottest companies out there. Which is cyber security. A lot of people feel competition has gotten very ripe Michael Preysman he is a very bright and good man. New store in brooklyn opens. Clothing . Yeah, clothing. Brooklyn has that and a new chickfila opened. Closed sundays. David, i just wanted to say that this is not from everland, but anytime you want to sublet, ill let you have it. I want 48. 8 of it right now. Blessed jim, well see you tonight mad money 6 00 p. M when we come back well watch these markets. Well talk more smile direct club as that ipo is in focus with the first trade and an interview with some top executives of the company. Dont go away. Did you know that americans that bought gold in 2005 quadrupled their money by 2012 . And even now many experts predict the next gold rush is just beginning. So dont wait another day. Physical coins are easy to buy and sell and one of the best ways to protect your life savings financial meltdown. [narrator] today, the u. S. Money reserve announces the Immediate Release of u. S. Governmentissued solid gold coins for the incredible price on your screen. These Gold American eagles are official gold coins of the United States and are being sold for the price on your screen. Pick up the phone and call americas gold authority, u. S. Money reserve. 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Dont wait another minute, call now to purchase your American Eagle coins at cost for the amazing price on your screen. Good thursday morning. Welcome back to squawk on the street. Were here on post nine of the new york Stock Exchange. Were getting closer to s p record highs got to 3,010, but muted reaction right now as were watching ecb china trade and more our road map does start with stocks which are still flirting with record highs. This is President Trump delays some china tariffs one question, can the markets keep up the momentum two big ipos make their debut on the nasdaq. Well bring you their first trades live. President ial candidate Elizabeth Warren with a new proposal to tack the wealthy we have those details coming up. Markets are mixed as trade tensions appear to ease overnight and again this morning. Stocks in fairly positive territory. Were still relatively close to record highs this of course after President Trump announced he will be postponing tariffs on china at least at this point by 15 days, or higher tariffs negotiators are set to meet in washington within the coming weeks. U. S. Treasury secretary Steven Mnuchin spoke to cnbc this morning about those talks. Weve had a series of principle level conversations. We have had a deputys meeting planned in the next two weeks where the chinese will be coming here and theyll be working on material in advance of the vice premier coming here the beginning of october to meet with the ambassador and myself we look forward to hopefully making progress over the next few weeks. Joining us with more, chief investment strategist and wells fargo investment senior Global Market strategist. Jim, let me start with you markets reacting the way youd expect to this latest news on trade . I think so. Thats kind of what theyve been doing, david any tweet, any good news that goes up and vice versa we might get more of that before we get to the meetings in october there is some other good things going on here i think, not only the good trade news, but the fact that bond yields have shown a propensity to rise again i think shows a big vote of confidence coming from the bond market which is healthy for stocks too even this morning theres still a really close relationship between the direction of that 10year yield and the direction of the stock market just tick for tick i also think economic surprise indices have picked up they certainly have here in the United States and also emerging world, china and europe. That kind of fresh upside momentum is starting to cause recession fears to fade a bit. I think it just about the trade news thats got more fundamental support going on. The president is focused on some of his tweets on fed rates, on global rates, negative rates, currency exchange. Jim, we should mention by the way the german 10 year bond sort of back to where it was before we got the ecb news in terms of a cut there. Sovereign yields also seem to be evening out to your point. Have we seen the lows do you think in yields in terms of u. S. Treasury so far . I dont know. Thats the Million Dollar question i kind of think theres, you know, a possibility of that, david, in that as i said, some of the Economic Data has started to improve here and i think peoples attitude about recession is starting to change as well. Look at that core inflation rate this morning cpi went to the highest level this entire recovery, 2. 4 its kind of hard to see a 150 tenure again with some elements of infliation, including Wage Inflation and if the real data picks up here and across the globe, i kind of think we might be starting on a little change of character not only in bond yields, but also leadership in the stock market i understand youre focused fairly closely on what the fed may or may not do coming up. We do expect a bit of a cut. Jim there saying he thinks perhaps some of the recession fears have been put on the back burner how are you feeling about the u. S. Economy going into this fed meeting . Sure. So at least on an expectations basis, its clear now to see that people probably got a little too beared up we were there in the Fourth Quarter of last year too and the way expectations work is eventually reality starts to outperform the tricky part is unfortunately you do still have a lot of headwind a lot of the pmis, a lot of Small Business confidence is low. Consumer confidence is starting to rollover. We would be more in the cautious camp youve got yields about 30 or so basis points higher which has been the april and july moves. Its right in line with that we will say at this point its parole a good time to reign in some ftd stoof the stock exposu look at some of the longer duration. Jim, you mentioned what rates have been doing. Youve got stocks near record. Youve got core inflation, claims can powell get away with Holding Steady next week i think that would create a firestorm, carl, if he held steady how does he justify it . I think thats tough. I think hes in an interesting position because i think the data is pretty good here, particularly in the United States i know theres still manufacturing weakness, but much of the rest is doing well. Even the leadership shift here the last few days towards small caps away from defensive stocks, bond markets seeing better growth, credit spreads have come in i think its a tough case to make to cut, except weve still got a massive inversion in the yield curve and that in and of itself can create enough fear to his point to freeze up confidence and create a confidence freeze recession. So i think if i was the fed, id say were dropping rates not because for fundamental reasons, but because were going to try to take that curve inversion out and restore some confidence among the private sector. Can they do that and just say you better like it because thats all youre going to get for now . You know, theres just no need for them to do that i think theyll probably say were cutting because there are risks to the outlook and this rate cut is warranted. I think theyll probably say well remain data dependent. For them to at this point let the cat out of the bag and talked about remaining patient from this side of things, i dont know, its preobably a little premature. Appreciate it thanks to you both. Thanks. Were awaiting two ipos to open at the nasdaq this morning. Leslie joins us with an up date on the latest. What a big week, leslie. A big week indeed and its not stopping anytime soon. Two ipos at the nasdaq today 10 x genomics and smile club both deals got greater than expected smile direct priced above its range as well. 10 x genomics raked in 400 t 400 million in proceeds while smile direct got 1. 3 billion worth of cash smile club is the fifth largest among those listed in the u. S. This year and a banner year for deals. Investors were drawn to the companys top line growth as well as what they believe to be a very large total Addressable Market for orgt dtho do orthodo. Bears are focused on the dentistry world seeking to make the liners even cheaper. They have thei mfies to the business well see whether the investor demand from the road show continues today when the stock begins trading, likely to open within the next few hours. Behind me people are starting to file in and wait for that first trade. Back over you to. Thanks, leslie. It does look like the excitement again is starting to pick up i know youre going to keep us updated. Were going to speak with executives from the company after that opening trade as well youre going to make sure to stick around for that. When we come back, the white house as you know by now taking on ecigarettes. Were going to talk to two Industry Leaders on what potential bans might mean. Then later dont miss a first on cnbc interview with ceo harold hamm well talk Energy Complex as we are Still Holding s p 3k dont go away. 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. The administration in d. C. Taking aim against the, quote, giant business of vaping thats resulted in the deaths of at least six people. Working on a proposal to ban flavored ecigs affecting bans like juul. Behind this is the Cleveland Clinic the ceo joins us this morning in a cnbc exclusive thanks for the time today. Good to talk to you. Thank you for having me. How serious do you think the white house is and why do you think they are some would argue quick to jump on this with six people now confirmed dead . First of all i would like to thank you for bringing this attention to national awareness. Vaping is not healthy. Its a growing health care problem. It affects our youth, our most vulnerable population and were fully supportive of the White House Initiative do you think it actually happens across the board or exemptions what do you think the policy will look like once it gets closer to it im not certain what the policy will look like but i do believe this is an important first step what we would like to see is that this type of initiative spans across our country because of a growing importance of this problem. You know, tom, i understand that about a quarter of the Nations High School students started vaping within the last 30 days. That number seems very high and obviously the flavored vapes or the flavored ecigarettes seem to be the issue here, but if you get rid of the flavor and it still has the nicotine, havent you already addicted a new generation of potential ecigarette smokers . Is that really the answer, just getting rid of the flavors certainly just getting rid of the flavor is not a complete answer, but what will affect getting rid of the flavor will reduce the consumption among those who are most vulnerable. Those are the children a teenage population where vaping of flavored cigarettes is immensely popular. And also very, very damaging certainly there is no type of vaping that is good for a person, so i certainly agree with you that one should strive to eliminate vaping and nicotine consumption all together. What do you say to smokers who are still smoking combustible cigarettes or thinking of trying vaping or maybe they have tried it the fralavors keep them to it ad they say if you take my flavors away, im going back to my original pack . First of all, vaping is not healthy. The concentration of nicotine in vaping devices is much, much higher than it is in cigarettes. We will definitely not advocate vaping in any form we have spent decades fighting against nicotine and cigarette smoking and this new technologies that are being used and the new devices are putting us really at risk to eliminate all the progress that we have accomplished over these decades of intense Public Campaign tom, stay with us just for a moment a little bit of market action. We got a spike in some equity prices the reason why we did see that move higher is because of headlines coming out of bloomberg saying that the Trump Administration may be looking into or weighing a possible interim trade deal with china that would delay or put off some of these tariffs you may recall that the Trump Administration has already put a twoweek delay to a hike in certain tariffs asd will from the administration during these negotiations that is what sent the stock market, specifically the dowas0 particular headlines came out. They ran from about 120 points they pulled back a little but that is the reason youre seeing it move higher well continue to monitor this, but trade is the reason why the markets move higher. Ill send these back over to you. Im looking at the lead here out of bloomberg five people sourced. They say the administrations discussing delaying and even rolling back some u. S. Tariffs for the first time i think thats whats original here. Whats interesting about this too is over the course of the past several months and even the last couple of years, the amount of movement a market has seen based upon trade headlines has become somewhat more tight or more muted when you do have a positive Development Like this, if its worth 100 points on the dow, it kind of gives you an idea that perhaps there is a little bit of sket ti simp skepticism whether whether or not this is seen as progress between the u. S. And china. Stay with us, dom absorbed quickly by the algos and sometimes prices go back to where they were prior to the headline itself. The rollback thing, david, i dont know if you find that interesting or not. Like a lot of people, you dont want to go off a headline. An interim deal, im not quite sure what that means interim to what . Potential rollback in existing tariffs as opposed to just a delay in going up is certainly a potentially significant olive branch well see. We heard from secretary mnuchin this morning on squawk box he has high hopes of what will take place a couple years from now. Jim cramer says others in the administration seem to be negative on the prospects that anything will be done in the near term. The piece goes on and its very short, but the piece does say this would be in exchange for commitments on ag which has been a big part of the discussion obviously for weeks, but also commitments on intellectual property. If that came to fruition in any concrete way, the market might Pay Attention to that. Perhaps that is certainly a big point. Just get this all started from the beginning which i think many executives may not have been in favor of tariffs or certainly in favor of some kind of, you know, renewed interest in looking at the intellectual property, making that better for everyone. I think most people agree that has been a tilted relationship yeah. Thats been a key area we heard the seven points from mr. Navorro a couple days ago when he was a guest on squawk box all the way down the list to fentanyl and its continued exporting from china into the u. S. And obviously with egregious outcomes unfortunately for so many people as dom said, were going to move on these headlines this is a bloomberg story. Well see. This is sort of all you can really do at this point because so much still remains opaque and the talks have yet to take place. Theyre laying the groundwork for the talks, so you can imagine theres back and forth and perhaps what this reporting is coming from. We have moved a little bit less severely on many of these trade headlines, but this is a very noticeable move you can see that sharp move higher its good for about 121 points right now. S p 3,015 is 10 points shy of the alltime record at 3,027 youve got the vix below 15. All sorts of different class reacting to i guess if you were going to extend this and believe in it, you could write a headline later today that argues that youre going to see a pause in the trade war were not there yet, but thats what some were beginning to speculate about. One of the places were looking is crude oil there are a lot of dynamics that played global economically with regard to demand and the supply picture, but crude Oil Prices Also certainly a focus there if there is a detente in terms of trade deal if there is progress, you could see some of the more economic sense of the commodities market. Perhaps copper prices, perhaps oil prices were also keeping a close eye on whats happening. Weve been speaking so much about this idea that there has been this kind of observed rotation out of certain parts of the market into others, higher valued Asset Classes into more value oriented ones. Whether or not these particular headlines do kind of shift the calculus or the thesis bliehind those thought processes. Ive also been watching closely between trade headlines and those Companies Seen as insulated. Those stocks are perhaps outperforming short term, but will they continue that today based upon these headlines and any other developments that may come out of this again, the dow industrials did move up from a 20 point gain to 120 points as courtney pointed out, were pretty much hovering there right now. We talked to mnuchin this morning. The president has been tweeting a lot but not about this particular angle dow is up 130. Our apologizes to tom of the Cleveland Clinic thanks to him. Were back after a short break sd at the start of every race. Every new job. And attempt to parallel park. electrical current buzzing each new draft of every novel. typing clicks the finishing touch on every masterpiece. newborn cries it is humanitys official twoword war cry. Words that move us all forward. The same two words that Capital Group believes have the power to improve lives. And that, for over 85 years, have inspired us to help people achieve their financial goals. Talk to your advisor or consultant for investment risks and information. Talk to your advisor or consultant Liberty Mutual customizes your Car Insurance, hmm. Exactly. So you only pay for what you need. Nice. But, uh. Whats up with your. Partner . Not again. Limu thats your reflection. Only pay for what you need. Liberty, liberty, liberty, liberty lets get back to the Cleveland Clinic ceo tom, sorry for that. I did want to ask you one last thing, though, regarding vaping. So much mystery surrounding these illnesses that weve seen around the country does the clinic have a better view of what that might be about, what the cause may be have you seen patients yourself . We have seen patients and what is really, really alarming here in the Cleveland Clinic we have seen young patients who required a long stay in intensive care unit because of the severity of their lung disease. It is really too early to tell what is exactly causing it, but what we do know is that all of those cases were related to the relatively recent onset of vaping so it is definitely a harmful habit. Our lungs are meant to breathe in clean air anything that is not clean air is harmful for lungs vaping is a very, very harmful habit. And at this point you believe it is a lungrelated disease, because so much of the research lately has looked at cardio rather than pulmonary illnesses. It is really important to emphasize the harmful effects of vaping are not limited only to lungs. Nicotine addiction in particular in teenage patients can affect Brain Development with the long term consequences such as impaired cognitive abilities as well as memory impairments so these harmful habits extend farther from lung disease alone. Tom, our thanks its a huge story around the country right now. Appreciate that very much. Of the Cleveland Clinic. We continue our discussion on vaping joining us is tony, the executive director of Vaping Technology which represents over 800 companies in that space. Thanks for your time. I appreciate the opportunity to be here. You guys are under some fire. What does the industry do now . Well, i think the bottom line is we want to make sure that we speak clearly and that our government and our Public Health officials speak clearly about whats really going on the fire is being caused by what you were just referring to as these illnesses and disease. Thats whats really attracting a lot of attention what you didnt hear from the former speaker but you did hear from the fda is that the root e illicit black market thce not products we immediately have told everybody that nobody should buy products off of the street, but we have a big concern which is that without a clear message coming out from our Public Health officials, theyre conflating all vaping or the use of eintegrities with nicotine with street bought black market thc products thats dangerous not to send the appropriate warning, especially in this context. Ive seen we have seen a number of reports that indicate while certainly that may be one of the culprits, its not clear that is the only culprit i mean, to our last guests point and others, i dont know if youd agree, we dont know yet what is causing some of these illnesses, do we we dont know full details, but we do know enough according to the new York Department of health and the fda which put out clear warnings which said that its the thc products that people should stop vaping. That was the fda statement they put out on friday evening. As far as the new York Department of health goes, they did their findings and their research and they put out their Statement Last week which said that what they found was this Vitamin E Acetate Oil which is cut into thc wax and is used to cut it to make it more soluable, more vapable yes, you are correct, we dont know the full answer yet, but we have a clear indication as to where they are going while we reserve judgment, if you dont properly warn, then youre sending the wrong message. If you dont tell people about the right warning, theyre going to continue to perhaps use that product. Whats really important is we do have a Large Industries thats just been threatened by this ban on flavors the confluence of flavored bans and whats been happening recently, there is no connection a boston Public Health professor just came out and said there is no link between ecigarette flavors and the stories weve been hearing in the press recently bp because yo recently it is important to know how big this market is and what does it mean to Public Health. The fact of the matter is we did a study and there are almost 14,000 vapor companies in the United States. Almost 12,000 are retail vape shops and they sell a wide diversity of flavored vapor products to adult smokers. You take those off the market and what will happen is those shops will shut down were talking about a total Economic Impact of 166,000 jobs, 70,000 of which are direct retail jobs. Take those products out of the market, there is no Business Model for people selling a tobacco flavor the real harm here is the fact that those consumers that are buying those products from them will have two options. Both bad and worse the first option is that they go back to smoking. Thats not what were saying yes what the fda said in open court in june. What they said in court is that dramatically removing vapor products from the market will lead to an increase in smoking the worst case is that it leads to more black market problems, because that is what the American Consumers have said theyll go to smoking or go back to the black market. Thats been affirmed by Public Health experts that wrote a letter to the fda, attorney general tom miller from the state of iowa who submitted findings about how they have to rethink their policy. Were all in agreement this does threaten the business of ecigarettes that is the problem and thats what were trying to get at. What the white house is trying to say is dthis is a Public Health problem and theyre very concerned with the flavors being attracted to teens if a quarter of the countrys high school skuntudents have admitted to vaping in the last 30 days, thats the problem theyre trying to address. What do you say to that . Its hard to argue a mango flavor is not attractive to a teen. What we addressed is what we talked about the last time i was on this show we implemented our marketing standards in 2017, gave them to commissioner gottlieb in 2018, encouraged them to enforce aggressively on marketing issues because we think it is important. But people get really confused when they talk about flavors number one, you need to understand and what science shows us is that fruit flavors, beverage flavors are helping adult smokers quit adultsmokers are not intereste in tobacco because thats what theyre trying to move away from and that is why they rely on a wide variety of flavors. We have to be able to walk and chew gum at the same time in this country and i believe we can do that. Its funny you say that because im not sure the smokers need bubble gum. Quitting smoking is one thing but do you really need flavor . Where is the line . Thats a great question there are a number of things we can do in terms of regulating the way flavors are marketed thats what were talking about. You control the packaging, the labeling, you can control what products are called. Simply ripping them out of the marketplace serves no nobody ultimately you and i know. Im a father with three teens. I know that teen dos stupid things teens experiment all the time. The numbers we see coming from the cdc and fda generally show past 30 day use. Have you used a product, have you experimented once in the past 30 days it does not mean its not an issue. We have to be able to address the problem without taking this tool away from adult smokers who are desperately trying to quit. That is the heart of the debate, no doubt tony, thank you very much. Vapor Technology Association well keep our eye on developments out of the white house. Well send it over to sue herera she has a cnbc news update. Heres whats happening at this hour. British Prime Minister Boris Johnson denying lying to Queen Elizabeth when advising her to suspend parliament for a fiveweek period he made the comment while visiting a london dock yard to announce a new ship building program. Absolutely not. And indeed as i say, the high court in england plainly agrees with us, but the Supreme Court will have to decide. We need a queen speech we need to do all sorts of things at a national level. The Israeli Military says its jets struck targets in the gaza strip. Video shot late last night shows explosions illuminating the night sky. The military says it targeted military compounds in the northe northe northern gaza strip. Singing a song in hong tongue that highlights the creative of demonstrate ares on. The song is glory to hong kong and has been adopted as their anthem more protests expected this week naets t thats the update for this hour. Thank you oil tycoon and billionaire t. Boone pickens has died at the age of 91. He was a wildcatter, a corporate raider, a Hedge Fund Founder and a billionaire philanthropist joining us is fellow oil man harold hamm. Chairman and ceo of continental resources. I certainly want to spend on your reminisces on mr. Pickens, but i want to talk oil with you if i could at the outset im sure boone would approve were talking these days about potentially getting to what . A narrative of lets call it 15 plus Million Barrels per day of u. S. Supply. In your opinion as one of the pioneers of this industry certainly in terms of shale and fracking, do you think thats possible i do. The growth projectile has slowed down the last year which it needed to. We were oversupplying the market one thing you cant do is get ahead of the market. We want to meet demand, but getting ahead of it is not a good thing and weve seen the results of that. And so the Public Market has told us thats not what theyre going to pay for its a lot of growth we dont need Oil Companies have readjusted the percentage of growth that they have in the companies and we certainly have at continental as well. We intend to meet demand, but not exceed it. Anyway, thats where its at can we get to those numbers in the future weve got a great deal of oil here in america, thank goodness. Its possible we can get to 15, 16 barrels a day eventually. Are well efficiency seies one oil side still increasing or start to decline were not close to decline but increases, maybe were getting toward the top of the learning curve on individual wells. The bulk end is still growing. Were getting to the top of that curve maybe. Theres still a lot of room for growth here in americas oil fields. The companies themselves and the stocks, were taking a look at what we have in continental resources. Theres continued concern about the ability of the industry to refinance what is over 100 billion worth of debt coming due over the next three years. Is that a justified concern . I dont believe it is on a macro scale. Companies are able to handle the debt that they have. We certainly are here at continental. Weve been paying down debt. The First Six Months of this year our earnings are about 500 million. Excess free cash flow. And so were where it needs to be both the stock buybacks and debt reduction. So most companies are able to handle it like continental is. Harrell, if we can move to t. Boone pickens and sharing some sort of memories of what he did for the world of business and energy of course, he was quite a character and weve been talking quite a lot about personal stories and memories, but he did an awful lot for the energy world, particularly recently in natural gas. What do you think his biggest legacy will be well, obviously its one of the reasons that i got in this business to start with and that is the generosity of people within oil and gas. Boone pickens exemplifies that as much as anybody he was somebody that made money, made big money, and gave back. Boones a great oklahoman. I enjoyed my time with him i went out just last year and sat down and had dinner with him one evening. He and i talked about, you know, our career and what it meant to us and also just fun stuff hunting and all those things we enjoy so much. Ill miss boone. He as i said was a great oklahoman. He created a legacy and extended a legacy of generosity within our industry and thats certainly important. Yes, he was a maverick in a lot of ways. A corporate raider made a lot of money. Forced companies to achieve greater efficiencies at a certain time and then of course he was a commodity trader deluxe. What are your thoughts, harold, when it comes to whats going on right now with u. S. Policy and trade with china and the impact on the Broader Energy patch . I mean, certainly thats an area that we need to focus on and Pay Attention to the policy changes as we get these headlines this morning that perhaps there may be some kind of a potential rollback or some kind of a resolution i think a resolution will happen i think we just need to make sure that were concentrating just on trade and dont try to correct all the social issues in china. Theyre their own country and theyre going to do things their way. So getting over to intellectual property and all those sorts of things, maybe we just need to stay exactly on track with trade and in our industry were patriots were not out there campaigning and whining about whats going on wed like to see it corrected sooner than later. The administration is working very hard to make that happen. And i believe it will happen it will be good for basically world trade as it occurs you have to remove the road blocks and this administration is doing exactly that. Mr. Hamm, always appreciate you taking some time for us. Thank you. Thank you its good to be with you harold hamm, ceo of continental resources. As we remember t. Boone pickens passing away at the age of 91. Well be right back. [upbeat action music] pilot were going to be on the tarmac for another 45 minutes or so. For farmers here, this is our lifes work. But when a recall happens, perfectly good food goes to waste. Now, weve got away around that. Looks good. Were on target. Blockchain on the ibm cloud helps pinpoint a problem anywhere from farm to shelf. Its used by some of the biggest retailers everywhere. A nice wedge. So more food ends up on your table, is that daddys lettuce . Yeah. And less food goes to waste. The wait for the next big market bounce could be over. More squawk on the street is coming up. Johnson johnson is a baby company. But were also a company that controls hiv, fights cancer, repairs shattered bones, relieves depression, restores heart rhythms, helps you back from strokes, and keeps you healthy your whole life. Ever stop helpstaking care of you. Kes, walmart is expanding the unlimited congre Unlimited Service to for 98 a year or 12. 95 a month, shoppers can subscribe to receive unlimited grocery deliveries to their homes. This is not the one that goes directly into your fridge we talked about before. Thats a separate pilot. This one you do have to accept it at the door shares are higher on this this morning you can see slightly but still a nice chart year to date. Up about 25 this may seem like a no brainer. Pay 98. Its less than amazon prime to get your groceries delivered, but Online Grocery delivery has been a really challenging area for any one retailer to really master i think consumers are still a little funny about somebody else picking out their meat and their fruits they have to coordinate being there for the refrigerated groceries. The market share in the u. S. Is still relatively small something about 5 is the estimate we see. It seems like a great idea, but it may take some time for this to catch on. Still, i think the market is encouraged by continuing dw developments for grocery. Whats the delivery time on this you can pick your delivery window and see whats available. Largely it is the same day of course, if you do it early enough walmart has Something Like 45 on 45,000 personal shoppers which is another problem some people have said the aisles are getting a little crowded with the walmart personal shoppers for the people that are going into the store but walmart says if youre buying your groceries from us, we dont care if you want to come in or you want us to deliver it for you. About half of the market will get this by the end of the year. Walmart has 3,400 stores or so its going to be in about 1,400. But walmart had also said when it was talking about its next day delivery that was going to take some time to roll out by the end of the year and they were way ahead of their projections already for the areas of the countries that get it perhaps this could be something faster than what theyve projected at this point. But we have other retail news to talk about moving on to under armour, earlier i sat down with founder and ceo and i asked the company and him how hes feeling about the effects of china tariffs because weve seen new tariffs come in since the company last reported last year under armour produced about 18 of its goods in china with a goal to get that down to about 7 by the year 2023. Here is what the coo had to say about how the company is handling the higher costs of tariffs today. In large part i think credit to our Operations Team for actually making china as not a place were going to feel that great of an effect. Its great. With the current tariffs were actually not being affected very much at all. We only have about 10 of what comes to the u. S. From china the current state were okay. Meaning you dont have to raise prices you figured out other mitigation tactics . We have and going from defense to offense, we feel this is covering our area right now. Which is interesting at a time when the company is working on pulling back its promotions and going more with fuller priced items you can imagine as theyre already pulling back seeing pain from that. Its hard to put your finger on it but in the last quarter north american sales were down 3 . Traffic to the stores were down but once a shopper got into the store they liked what they saw and conversion was up. Still theyve been managing through these tariffs fairly well and lowering that exposure over time. It was an interesting conversation and we had to ask him what he thinks about this California Law for ncaa athletes or opening the door. Four years from now to allow individual athletes to accept compensation right now under armour does sponsor ucla and berkeley and mr. Plank sort of kept the door open and said we really love our athletes, we want to make sure theyre fairly compensated for the value they add to these institutions and were not quite sure thats the case right now i thought that was a very interesting thought on that new potential rule although others point to it and say if an athlete is in the ncaa and accepts outside compensation, theyre going to be ineligible anyway so its a moot point. Some argue its a matter of time before those athletes who work so hard for the schools get some liberties. Those big schools bring in so much money from those athletic programs. It is a fulltime job. Absolutely. Seven days a week every single day offseason, in season. It doesnt matter. Absolutely. That was great stuff this morning as we watch plank back in action. Meantime, the third democratic debate kicking off tonight with Elizabeth Warren looking to keep momentum john harwood joins us live from houston with more. Good morning, john. Good morning, carl. This is a fascinating development. Elizabeth warren has set the pace on policy proposals in the democratic race and shes been moving up behind joe biden, moving up steadily for several months this is a proposal she has made on Social Security remember the context for the Social Security debate programs set to become insolvent in 2035 as baby boomers retire most of the conversation has been about raising taxes and curbing benefits, though recently democrats have talked about higher benefits for the bottom end Elizabeth Warren is now proposing a 200 monthly increase for everyone current and future beneficiaries how would she pay for that thats a very large commitment of cash. She would impose a new payroll tax on incomes above 250,000nd right now incomes are capped for Social Security taxation around 130,000 if you are over 250, were going to impose a payroll tax split eventually been employer and employee in addition to that, she would impose a 14. 8 tax on net Investment Income income for pe with incomes over 250,000 how much would that income how much would the two tax provisions raise a ton of money, and you can tell it because mark san deestimated not only does it worsen the problem of solvency, it extends it by 19 years interesting way to try to get initiative into the debate expect to hear discussion of this subject market finely attuned to what will be a blistering campaign the next year. Well check in in a bit. Were switching to eamon javers thats right. Administration officials are pouring cold water on the bloomberg report we told you about a few minutes ago. Bloomberg reported that Administration Officials were apparently discussing a limited trade deal with china in which they would lower some tariffs in exchange for agreements on ip and other items. I asked if that report was true. The official texted me back two words, absolutely not. Officials keen to emphasize the president is not giving up his leverage going into that deputys level meeting next week we expect with lower level officials, discussing the potential trade deal next week, leading up to a senior level meeting in the month or october. At this point for that report, official texting me absolutely not true thats fairly definitive, eamon. We talked about the headlines from bloomberg, trying to understand what interim even meant. I guess we dont have to worry about that any more, do we in washington, you get denial, denial this is just a denial. Bloomberg reported there were discussions among Administration Officials internally, not that this was offered to the chinese. Thats a very preliminary step to discuss a preliminary deal internally a lot of things get white boarded. At what level is this true this official saying absolutely not true bottom line, they want to put the ka babash on the story. We get a couple weeks away from talks, i assume we have to brace for more of these reports, push backs as both sides want to enter talks with leverage. There are a lot of participants on both sides of this, particularly the u. S. Side, there are people with different views of this, who are participating in it. You might get leaks coming from one faction or the other going into it, as each side sort of jockeys for ideological supremacy and momentum internally inside the white house as well as with chinese. Theres a lot of moving parts, were going to see a lot of this going forward. Definitive market move. The move is higher on the initial report we stayed there a moment eamon as you came on, told us the official said absolutely not, we lost all gains, gotten right back to where we were before that report there you are. Thank you very much for being here and giving us that update appreciate it. Time for the etf spotlight, looking at the banks kbe erasing most earlier losses from todays session, up almost 6 this week when it comes to big names, bank of america among laggards, goldman, sachs is a bright spot. All right we have some reports, some denial, denials, opposed to nondenial denials and a market not doing much of anything more squawk on the street after this i can. The two words whispered at the start of every race. Every new job. And attempt to parallel park. electrical current buzzing each new draft of every novel. typing clicks the finishing touch on every masterpiece. newborn cries it is humanitys official twoword war cry. Words that move us all forward. The same two words that Capital Group believes have the power to improve lives. And that, for over 85 years, have inspired us to help people achieve their financial goals. Talk to your advisor or consultant for investment risks and information. Talk to your advisor or consultant when didwhen i needed ton . Jumpstart sales. Build attendance for an event. Help people find their way. Fastsigns designed new directional signage. And got them back on track. Get started at fastsigns. Com. Welcome back to squawk on the street. Im dominic chu. Financials now a key focus, Interest Rates a big part of the story. Keep an eye on Insurance Companies out there like progressive, everybody else in terms of overall insurance side of things, and watch banks, specifically regional banks like m and t and bank of america, jpmorgan, all a key focus, carl, as Interest Rates stay in focus. Back over to you guys. Been around the block and back, hanging onto 3 k on the s p. 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