Dow on track for the worst month since january. Icahn the latest the step down as an adviser to the president and now looks like there maybe communications with all of that and another shot fired in adps ackman battle. Well break down what that means. Four week losing streak for the nasdaq and given sort of these levels here. Not surprising that the dow is on track for the first month since january. I have been watching and reading and theres people that feel that a 2 correction was warranted. Thats not a correction. I mean, we had a meandering. Things have been good. Theres things like foot locker that are devastating things like estee lauder its just hanging in there oil tried to put a bottom in on friday news camp was good for oil but that was the most noteworthy thing that i saw obviously the bannon news was okay cohen in and banno out. The failed socalled bannon rally bother you. Not at all. Were at a moment where theres more people taking vacation than usual. These things i know theyre supposed to be slow but, you know, it doesnt mean you have to close we ought to go back and say okay listen 2 00 we are going to knock it off. When you couple the geopolitics, whats going on in washington, the seasonality, augustseptember some argued the standing right now is maybe the most tenuous its been for the year. August is bad its always been bad we have been together where it takes your breath away, august also the first four weeks of september are just skittish times and what i sympathy amazing is there havent been that many earnings disappointments so typically we had them we went through retail and the ones that have been hammered are, lets just say deserve it i heard a lot of discussion about home depot home depot is a test for me. They reported a great quarter and thats been unusual. Most of the commentary for most of the companies that had great quarters was saying the stocks are up one of the themes in the last few earnings quarters and theres see ttoo many retailers its all going to tail wind. That matters tremendously. I think for some of the Largest Tech Companies so i dont know i dont want to say im senquin. I left here on thursday night saying wow i can get hit and then i saw bannon is out well be talking a fair amount of Politics Today the president is due to deliver his primetime address to the nation tonight. The president will speak to the country from arlington, virginia comes after a turbulent week for the white house including the disbanding of the two business panels following the remarks on charlottesville and resignation of steve bannon. Trump and the ceos a soured partnership. Big full page piece. How tenuous its been for months some of these councils were talking about disbanding back in june they were upset about the paris accord and the transgender military issue charlottesville was just the final straw. I think thats true but these people are such universal stake holders that dont want to revisit a lot of these issues. I think chuck robins was emotio emblematic i think they thought they could be integral in the move for lower taxes but that got bogged down by repeal and replace there wasnt anything for them to do. But there was a momentum and i think that those policy groups might have been very valuable or if theyre talked about infrastructure but theres nothing to talk about. Not too late though. Heres what i sympathy going to happen. Hate them or like them the guy. Im not being glib. I think hes going to take it on a smaller scale. I think hes going to take it say golfing. Getting ceos together that he likes the things that obama used to i think hes going to get rid of the big show i think he still wants the input. I dont think theres executives that are going to say no to a golf game. Im not being fetitious and i think what im seeing is going to be small scale. When you go back over by the way frazier started i think the president brought together a lot of groups that dont bring democrats together and you thought it was the spirit of bipartisanship in this case looking at Regulatory Reform i thought that maybe it would surprise me. He plays with an open hand he has an interest in it and people have an interest in drilling and they meet with department of epa. To your point he doesnt need a special title. Designated special adviser its all going to be too from here its not going to be these giant gatherings because people are too angry at this president. The charitable and then again its like okay were not going to identify with this guy. And then people forget i think if he takes, he goes back to exhibition but then it come backs to what happens in c congress september 29th, deadline, debt ceiling, thats the most important thing and for september were going to be in these situations where were going to come in and youre going to ask me does it have a chance to pass and im going to say i dont know thats how dysfunctional it is. Goldman put a 50 number on friday so its regarded as positive for the stock market i think its negative for the woerk but thats not been a factor in this administration. Rekbarding the debt limit. Thats what is going to be the focus. Thats too few days. Plus september 11th is the day after the redskins lose to the eagles. Home opener. Theres nine days because boy thats going to be a set back. The sports business daily says goodell is close to renewing his contract for five years. I think they changed so positively i dont know look, i happen to think they addressed a lot of issue including a suspension of the number one running back for 8 weeks of the season. Theres no more they have a zero tolerance which is what he needed. When we come back this morning, warren buffet getting out bid for that player in the Power Industry well take a look at the premarket here stocks coming off their first two week loss since may and the s p right around levels that was at the end of june were back in a minute this is not a cloud. This is a tomato tracked from farm to table on a blockchain, helping keep shoppers safe. This is a financial Transaction Secure from hacks and threats others cant see. This is a skyscraper whose elevators use iot data and ai to help thousands get to work safely and efficiently. This is not the cloud you know. This is the ibm cloud. The ibm cloud is the cloud for enterprise. Yours. So they called the fire, yodepartment for us. Clearly, the ibm cloud is the cloud for enterprise. My first truck was on the scene within five minutes. I am grateful we all made it out safely. To protect what you love, call 1800adtcares once again i just want to mention. I want to distinguish Elliott Barton from doing a level of homework about what this thing is worth and keeping it alive and buying back a lot of debt. They are when you hear them involved with something it is about rigor. They have a fabulous team. I have at times disagreed with them and listen to their view and say this is the most considered view. When i met with and talked about this it was clearly worth more than buffet was willing to pay for because they kept it alive and its great its great because its a really, really Good Property and buffet doesnt come back he doesnt bid again. What does it say though that he was not willing to budge on this one he just makes up his price. If he gets in good and if he doesnt, hes not going to hurt his business but for somebody like sempra that needed growth, this is great. I love the property. Encore is a really, really Good Property and they can refinance. Its a very good deal for them they shouldnt be doing an equity offer. There is some other news, total got this hlf stuff today. So significant because we keep waiting to see some m a now that the prices are so low and you keep hearing these Oil Executives come on and say its cheap tore drill on wall stree than it is no, people have been shunning anything oil this property, i mean, total was downgraded by barclays today and what it tells me is that theres hope if you own some of these stocks maybe there will be a wave thats why i say the friday bid underneath wasnt just because some libyan wells were taken off. I did not expect anything good in oil was a little bit of a surprise to those that put out the routine shorts. Has it changed your view. I still dont like oil. I really, partnerships still struggling from the egiant enery transfer and is now beneath where the deal was priced. Im not looking for anything big from oil here. Not at all its very interesting. Here is a deal where they basically are sticking it to ackman and you have these rights that come with so youre still kind of in the game. This is a dutch tender so we need david, wheres david faber when we have a dutch tender but its going to squeeze the short which is is kind of what the game plan is and carl icahn is keeping his stock. If you own herbalife well done. An 8 gain. It tried to go private. It was a weird release you dont have to tell us all of that but thank you for full disclosure on that. Some noted the tone there speaking of ackman adp will not nominate three candidates for its board. None of the candidates bring any additional skills or experience to the board they have a significant stake in adp and called for its ceo to be replaced Carlos Rodriguez will be the guest tonight at 6 00 p. M. Eastern time and he already called him the spoiled brat. I got the presentation this weekend and went over it page by page theres a lot of smart stuff about adp in there a lot of points about margins and the idea that they could have extended their franchise. A lot of points about technology more than 80 executives they interviewed. Theres real issues and i think one of the reasons why the stock dropped is its like wow, maybe theyre not as good as we thought. Despite what that chart shows, despite the white glove treatment that you talked about. Right, the total shareholder return has been fabulous but what ackman says is it could have been even better. Now the reason why i dont think ackman has a chance is because it has been really good and those of us that use it are, it worked but their idea of going against the mar jins thgins ver paychecks, the growth they have which is on very often, its inferior it is inferior so it may be there. You have to go to cloud so adp, some people would just it fat and happy so lets find out. You think peltz should go on p g board and adp should listen to pershing. P g has done really well. I like the pressure that peltz has put on but i want to see the presentation when i look at what proctor has done thats been lacking if peltz has a lot of innovation it does matter when i talk to the proctor side what i come up with is its not as bad as i thought. Adp was i have to admit the presentation has gravitas is what i was saying and the other side has to be heard from. Sounds like a good one tonight. I was hoping it was all hot air. I dont mean that. I read it. I told my wife, lets call our managers its a really good website. Yeah. But it was cojent well get cramers mad dash as we countdown to the opening bell a lot heading our way over the next five sessions more squawk on the street is straight ahead mike and i are both veterans, both served in the navy. I do outrank my husband, not just being in the military, but at home. She thinks shes the boss. She only had me by one grade. We bought our first home together in 2010. His family had used another insurance product but i was like well ive had usaa for a while, why dont we call and check the rates . It was an instant savings and i shouldve changed a long time ago. Theres no point in looking elsewhere really. Were the tenneys and were usaa members for life. Usaa. Get your insurance quote today. Oh hey john, im connecting our brains so we can share our amazing trading knowledge. Thats a great idea, but why dont you just go to thinkorswims chat rooms where you can share strategies, ideas, even actual trades with market professionals and thousands of other traders . I know. Your brain told my brain before you told my face. Mmm, blueberry . Tap into the knowledge of other traders on thinkorswim. Only at td ameritrade. This is the first we heard of the jordan franchise has run its course. The steph curry franchise is not existant on the call its like a fad now. Theyre Closing Stores the read group for underarmor is terrible. You contrast that with estee lauder they were thinking about where things were going to be and china has been a big resurgence but a lot of what happened and im comparing the two because he saw a lot of things coming online these guys were just blind sided. I dont think they saw and the speed, they talk about the speed with which the consumer changed. It was they did not see anything comeing hence why this can have such a big decline and the mall, theres almost no, they have no omni channel. Well talk about the downadgred nike. People arent spending on sneakers anymore. Opening bell in just a minute i put everything into my business. And i had all these points from my chase ink card. So i bought ingredients, utensils, even made custom donut cutters. Wow all with points. Thats how i created the ripple the doughnut in a doughnut in a doughnut. Suddenly its everywhere. I mean, it really took off. What will you create with your points . Learn more about the ink business preferred card. Another person was on this morning on squawk. The euro has peaked. The euro peaked. I dont get that at all. The euro has begun a serious descent if draghi has let go but the europeans have gotten away a lot with the euro trying to keep that down. The korean versus gotten away with a lot i tuns focus on china. That was correct i do think draghi should let go. This is really expensive stuff you dont get double digit gains in italy for the most expensive cosmetics if its really doing bad. Weve been over the bannon dynamic earlier. Some argue with bannon out even if hes an outside influence this aggressiveness on trade takes a hit. I think it does its about the bannon group. Lets get to the opening bell and the s p at the bottom of your screen this morning its Mortgage Holdings unveiling a new brand name mr. Cooper over the nasdaq here. Peter thompson, president of the 71st session of the General Assembly of the United Nations speaking of which, theres still a school of investors that are wondering and be watching whether the north korea back and forth resurges. Yeah whatever you do, maneuvers, the north koreans responded to put north korea back in two weeks ago we had the extension with north korea last week we had charlottesville. I was hoping this weekend would be jackson hole which is kind of the janet yellen saying we cant really raise, we cant really lower. This is as you said its a quite week but thats exactly what we had. Someone from the fed will Say Something or someone from treasury or cohen will be like you know, ive had it. He should not have it. There was a shot at him in bright bart today. Get used to that. Yeah, bannon didnt hang in the hamptons someone saw one of the advisers to trump in the hamptons and were saying wow its a pretty liberal town what does it mean . Geez. By the way, among the leerds this morning the free tps port reminds me what you make of coppers action over the last couple of weeks. The china is strong copper is showing strength its related to the fact that the air is so bad in china i was walking with a scientist friend of mine. Copper year to date outperformed the nasdaq. Copper is huge. Theyre building it. Thats a great point especially because the nasdaq has faang. Remember faang i do. People forget about faang i have to tell you the reason why faang doesnt die is the companies have great growth. You actually have to have a thesis you cant just say faang is dead did snap suddenly take back instagram . Did they suddenly start losing to jet. Com netflix yeah talk about whether its a hail mary or not but disneys earnings are going to get a hit. Alphabet acts badly. My Charitable Trust acts badly but i dont have a reason why. Theres people, proctor pulled some ads because they were against things that people werent happy with and i think alphabet is doing its best to clear that up. Starbucks got the cover of barrens and said things about mobile that you said for months. I know, my Charitable Trust owns it and i said well maybe its not as bad. I bumped into, well lets just put it this way, there are i bumped into him and they really solved probably and they did it by saying lets go sit in a store in massachusetts and solve this lets watch and when they did they were like blown away by how bad it was so they had to do this multiyear roll out where they solved it and also my panera, which i love, that was the best acting by far, best really good program. Starbucks Affinity Program has slowed down growth and they have not solved mobile pay that i can think of i got it with skim im not one of those people thats a defector. But im just saying what people were saying. It could grow 20 or so over 12 months. Well that will be a god send. Despite the weakness in retail today jim and its foot locker, nike, ultra at the bottom of the list today. I thought that was very interesting. I think that lulu is having a good quarter the work ive done on it says it was good it moved from 49 to 70 and theyre talking about 5 comps i have to tell you after foot locker i am gun shy but theyre doing a good job there the issue here is that things are changing so fast like johnson on the foot locker call he did not see anything coming because there was no reason to its like this is the best, worst idea its the worst, best, whatever holy cow. 19. 44. And i think when you listen to him on the estee lauder call he talks about the brick and mortar mall is the weakest part of the world the whole world. Spain has better malls and italy and theyre talking about u. K. Doing great but the u. S. Mall is just awful the starbucks in the mall were never really that consequential but when you read these Conference Calls last week all you can say is remember when you used to go to the mall and now you just go on amazon and amazon is a constant theme. Follow the dark star. The dark star. And mr. Blake came up with that, its like on the board at Procter Gamble its one of the reasons that its like not a give me. Hes the lead director hes the man that put boeing on a course that im sure he would say listen i didnt just i was born on third base a little bit. Hes fabulous but wow, looks like he gave him a pretty good hand so proctor, a lot of ways to win Procter Gamble now. Overall, indices largely unchanged. Nike is going to be your lagered this morning. That nike call. How about underarmour. They paid 12 million for steph curry. It wasnt even mentioned there was a great line on that call and great line is that younger people need a story. I guess thats true. They havent heard of jordan and nike. So eventually becomes like chuck taylor its sort of a name you know. Chuck taylor, that would be good now against that, jordan he they did say still has a good franchise but the double digit decline in basketball, basketball is where the money is youth is unfathomable saw some numbers from some of the theme parks that werent that good and then they liked selfies and they like the new go pro the millennials are driving me insane. Theyre driving everyone inside. Im tired of their fickle nature they do like instagram theyre like the backdrop of instagram. With all that dow is down 5 lets get to bob on the floor. Good morning, bob. Good morning, carl. Happy monday everybody just a few more declining stocks lets take a look at the sectors. Gold up again. Gold hit the highest levels of the year on friday although it closed on the down side. Utilities have been a winner for the month and for the year historic highs last week health care is almost a Leadership Group banks are just not doing it anymore. They down 5 for the month theyre approaching the lows for the year and we know what a mess energy has been. Speak of energy theres a lot of talk about value coming back in the second half of the year. I dont know, value is oil stocks and some financials a lot of people are trying to make arguments again about buying oil a number of notes out over the weekend. Talking about lower Capital Expenditures will be putting pressure on the u. S. Supply. This is going to be good news. Finally theyll drop Capital Expenditures and another argument being made is that the fed tightening means there will be less easy cash and fewer near term supply expectations well see. All i can tell you is lets look at the xle people had their head handed to them all year trying to buy oil dips and oil rallies and it hasnt worked. Those are the energy stock its been straight down. We talked about the fact that everyone had 60 oil for the Third Quarter. Its 46, 47 and people had to keep reducing their numbers and you can see the street has so far given up on any kind of rally. Hope springs eternal other interesting phenomenons going on here. The s p remembers up about 8 for the year theres been a lot of commentary and discussion about this. We talked about it on friday li a lot of people believe that since Companies Get revenues from the u. S. That some people feel that the trump tax cuts may be less likely and maybe a vote in a way there you see the s p 500 on the top line and thats the orange and there you see the russell 2,000 on the bottom line some people are trying to argue this is less confidence in the tax cut idea so that extent you might want to watch this if that is true to see if sentiment turns around now that others are working on tax policy or at least thats what they say that theyre doing at this time finally its a very, very sad day at the New York Stock Exchange one of the great titans on the floor of the New York Stock Exchange passed away Jimmy Maguire. He served for 60 years beginning in 1949. There he is ringing the bell including the New York Stock Exchange he was a specialist on the floor for decades. He traded the stock of the Washington Post but perhaps most famously he was the specialest for Berkshire Hathaway and very good friend of warren buffets. He was widely respected on the floor for his witt and leadership and always lead the Christmas Carol singing wait until thenelly he allowed me to stand next to him and watch trading in berkshire. I learned a lot about how the floor on rats by staperates ande me to warren buffet. He is survived by a very large family including his sons james jr. And paul that also work here on the floor Jimmy Maguire was 86 years old a titan has passed away. We will miss him. Absolute legend bob, thank you very much lets get to the oil sector this morning and check out prices jackie at the commodity desk. Good morning. Well, bob laid out a nice picture of the things to watch as we head into the fall but group prices are a little tentative this morning and sits balancing factors now keeping prices in check. The things you need to work for, we have an eye on that refinery outage in tex. Its small 25,000 barrels a day and it was already on maintenance not a huge red flag. The inventory is on wednesday. The u. S. Production number is buried in that report and the rig counts on friday carl. Thank you very much still to come the show down between tech and washington. Well discuss that and more with venture capitalist Roger Mcnamee this morning in squawk ally. Dow is down 9 points and take a look at the movement in treasuries this morning. The 10 year yield getting loes to a 2 month low back in a moment i think that shes a very nice girl. You never got the brakes looked at . Oh yeah. No. At cognizant, were helping todays leading manufacturers make things that think and do automatically. Imagine that, a world of new Digital Products and services all working together for you. Can i borrow the car when its back . Get ready, because were helping leading companies see it and see it throughwith digital. Thats according to recode previously there had been a short list of candidates they are been looking for a ceo since the cofounder sat down in june kara swisher with her story said a vote expected within two weeks. Wow i thought it was very surprising maybe he brings a steady hand and thats what is needed. You go from a colosas. Its a free for all every story makes it look like animal house he did not have an easy run there. If youre going to build the case, kara reports that he is close to ariana huffington, if you can go further and say truly global. He knows where to go. I think that its not a complimentary skill. It does show you that. If it happens get ready for the hot takes on what it mean ifs for founder of a start up. I think that you can do some things infrastructure is target. Its as true as the fact that it will be dark at one point today. I remember when we interviewed i think in november asked him about if he regretted getting out of financials. Almost all the moves were i remember when he had a terrible season before he went to kansas city and i happen to love him he said listen its my fault but in this game that were in you never hear that said it was my fault and yet they get paid a lot it would be really great if someone were to say the stock went down and. You may think its bad but no its not play office it was a game and it makes me crazy where they just say you know what, we were bad because i didnt do a good job. In sports a fan changes loyalties cost you nothing really when they sell their shares. Thats very, very te. Ell get stock trading with jim in a moment. Dow is down 21 heres the deal one of the things that stuck out to me when i read the automatic data piece is how good work day was. He has great growth and another thing is i felt great about those. Now im going to be speaking to the ceo. I dont want to find out exactly what is wrong in ackmans support because he presented a series of things that made you feel like whoa, maybe this company is underearning because its such a great company. It is great and then we also have a Data Center Company i keep track of those because that tells you about faang they all use data centers. Theyre a great Business Real Estate trust they have done a fantastic job but have to know because the companies i deal with in payroll personally and on air are killing it and its a very good company but if you read ackman it could be much greater could be good. When we come back the china trade r wars are focused losing steam in the early going here dow is down 42 dont go away. At fidelity, trades are now just 4. 95. We cut the price of trades to give investors even more value. And at 4. 95, you can trade with a clear advantage. Fidelity, where smarter investors will always be. Welcome back to squawk on the street mike is is back from the break at post 9 of the New York Stock Exchange david faber is off today our road map start with the markets and two straight weeks of declines for the dow and the s p. More shake ups in washington. Steve bannon is out. Carl icahn stepping down and a total Solar Eclipse across the u. S. For the first time in nearly a century well go live in oregon where the shadow will hit land fall first on the continent. Lets get a quick step on stocks at this hour. Two straight weeks of declines for the s p and dow. That puts the dow about 2, 2. 5 away from its record close the s p more than that mike were glad to have you back small caps have been a big focus for investors. Trumps honeymoon turning into a risky divorce and i wonder if he we called it the trump rally after at the election its been months in the making the market has been showing a lot of fatigue under the surface. Obviously the dollar has been weak so all the signs of the Slower Growth story have been manifested in the markets and more new lows than new highs but the headline index is we only had one 3 pull back in over a year and it might be where the indexes are coming down to meet what the average stocks have been doing for awhile now. Larry kudlow. Hole low. Its interesting to me First Quarter 1 Second Quarter 2. 6 Third Quarter were still living in atlanta fed now gdp model 3. 8. And i want to make the point youre talk about jackson hole or will talk about jackson hole. Low inflation is a very good thing. Very good thing. If you have a 4 nominal gdp and inflation rate is 1. 5 you have 2. 5 real. I dont know why the fed wants to raise the inflation rate. The fed should keep the dollars steady and i know theyre going to normalize and they need a tax cut. Well talk about that in a second low inflation is great its the pathway to higher growth and real income. Dont you want the data to confirm your target. I could live with zero. We used to call that price stability which means plus 2, minus 2 range. Thats fine. Again these low wages growing at 2. 5 thats 4. 5 for arguments sake at a 1. 5 inflation rate thats 3 real income for wage earners. If you have 2 or 2. 5 they lose a point. Prosperity an growth done cause inflation. Something is not right in the economy when were not seeing prices rise at all and in many sectors its deflating. We had Technology Deflation its the best kind for the last 25 years its absolutely terrific its not about slack in the economy. If the fed and the treasury protect the value of the dollar and keep the money supply. It was also an inflation rally. Thats the story also undermined by this idea we have to live with 1. 7 cpi. 1 cpi is great. Youre talk about 2 to 3 nominal growth economy i dont know if the stock market loves the idea of that forever. Go back to this great piece business rivals agree on policy. Wall street journal, its the oped of the year if you ask me. Fred smith of fed ex and david abney of ups bitter rivals but mr. Abney generally a democrat giver, what are they telling us here theyre saying if you cut Corporate Taxes and simplify the system, if you invest in infrastructure proerpperly and have fair and free trade, thats what you get 3 to 4 . There it is. Couldnt be any better nobody is smarter than fred smith. This is your road map and the sooner the white house can get back to this message, the better off theyre going to be. By the way as were talking here s p down dow down 55 testing fridays lows when we were buffet bd ed by rumors of bannons future but your argument is get back to consistency on message and then what happens then devote all your resources. All your resources to tax cuts and tax reform and by the way, trump stepped on his lines last week last week for trump was a total eclipse of the sun right now the white house tax cutting team is working very well with the house. I want to see more action in the senate if the senate can come in here and get moving on tax reform theres so much agreement on this its already there its the argument. Simplify and cut Corporate Tax rate infrastructure free and fair trade now we could get a tax cut bill in the 4th quarter if the senate comes on board at the worst most washington watchers say First Quarter its out there and its going to be retroactive and great for the economy and great for trumps political standing thats his message he picked a fight with the Senate Leader mitch mcconnell. Doesnt that raise questions about the senates ability to work with him. He needs him. Do you have senators on this show no. You have to spend time with senators theyre wonderful people theyre just fabulous people they have their own kingdoms and emotions pieempires and say what they feel like saying. Mitch mcconnell has done a good job if you ask me and hell come together with trump. All of these constituents, senators, the ceos who bolted from the two white house committees, okay they will all come together on a strong tax cut and reform plan i would stick with business tax cuts myself. Maybe double the standard deduction but thats not for me to say theyll come back. The ceos will come back. President trump will be on the phone to the ceos. Hell be on the phone to mitch mcconnell. Thats the way you work down there. Senators are senators. I dont want to mess with him. A lot of republicans are good to me they used to come on my tv show. Trump is giving a speech tonight on afghanistan this is not my favorite topic. Not, were going to put another 5,000 troops in afghanistan. Im not sure but what he needs to do right after labor day is launch the tax cut and Reform Movement wit a speech from the oval office to the nation and then go around the country and rally people in favor of this because this piece says that 2 annual growth in recent years isnt enough. We he can pick up 1 to 2 more if we follow this simple plan of taxes and infrastructure and trading. A agree. Listen to these guys these are business men and run Successful Companies thats the blueprint thats the model. What if labor day comes and goes and instead of tax reform were talking about getting the debt ceiling raised. That has to happen. You cant obligate spending and then not go for it this is a common sense thing have to take the overall mandate and whatever theyre called the essential benefits mandate steve bannon as a way to increase the likelihood of getting done what youre talk about and powering them to move forward with this agenda after i would add that very passionate and personal defense of the president from the treasury secretary this weekend. Love that by the way. Steve is such a good guy he is a class act. Look its hard for me. The fact that his protection was not only the big peoples table and adults table thats generally a good thing for business its right here. Really maybe he should do this from the oval office guys layed it out. You save us time on the intro. I just love to come down to this show first thing in the morning is great you guys are great thank you. Thank you great to see you. When we come back speaking of trade the Trump Administration taking aim at china. Well discuss the possible risks of a trade war an also that renegotiation of nafta with the ceo of the largest independent seal tube manufacturer in north korea. Now a look at whats coming up next. Guys we are less than two hours away from the start of the eclipse. At that point folks here will have to get rid of these and put on these oh wow i can look at the sun right now. Gg t we come back, something bierhan topics, bigger than wall street. After the break. Thank you clients . Well jd power did just rank them highest in Investor Satisfaction with full Service Brokerage firms. Again. And online equity trades are only 4. 95. I mean you cant have low cost and be full service. Its impossible. Its like having your cake and eating it too. Ask your broker if they offer awardwinning full service and low costs. How am i going to explain this . If you dont like their answer, ask again at schwab. Schwab, a modern approach to wealth management. If youre flying theres flights going east right into the eclipse. A call into the faa and pilots are being warned dont look at the sun. Some southwest flights are going to be handing out these solar glasses. Hard to find these now have to get these on ebay. Look at the map. It does start here in oregon and it starts technically around 9 06 local peaking with totality at 10 19 and only during that two minutes of total eclipse if you are underneath it can you take off the solar glasses and look with the naked eye but only people directly under it and only during that brief period now you in new york youll have a partial eclipse and dont look at it without these the sun will be more than half covered. Some schools are keeping kids inside im so excited. Its supposed to be me. Thats how you know whether the glasses are the right one. Yes it says iso 123122 it says that but these are also made in china so i have a back up pair because fraudulent solar glasses have been a problem. We cant wait as we get closer and closer to the totality where you are jane wells in oregon well take a quick break here. Take a look at Sempra Energy announcing a deal to buy encore for nearly 10 billion in cash beating out berkshire that had a bit in place dow down 50 and s p down 5 back in a minute theres nothing more important than your health. So if youre on medicare or will be soon, you may want more than parts a and b heres why. Medicare only covers about 80 of your part b medical expenses. The rest is up to you. You might want to consider an aarp Medicare Supplement insurance plan, insured by unitedhealthcare insurance company. Like any Medicare Supplement insurance plan, these help pick up some of what medicare doesnt pay. And, these plans let you choose any doctor or hospital that accepts medicare patients. You could stay with the doctor or specialist you trust. Or go with someone new. Youre not stuck in a network. Because there arent any. So dont wait. 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Do you expect him to make good on threats to chinas steel in terms of their type of projectionist measures. We hope so. The entire industry is waiting for him to do that and we have been waiting for a long time and battled with china for many, many years at some point this has to come to a head. What are you expecting there exactly and how is it going to influence american and other north American Steel producers and steel manufacturers. Its really china influences the world steel manufacturers which inturn influences manufacturers. They have been forcing others to move their steel into our country along with china and circumvent those already with the u. S. And the vast majority of those imports following him down creating jobs, great paying jobs 25, 30 an hour rather than 10 or 12 an hour service jobs were seeing created today. But as a Global Business leader do you worry about the threat of trade and economic warfare. When it comes to trying to tamp down the north korean threat. Well look theres no question were in an economic trade war and have been for many, many years. And you cant have a chronic trade imbalance like we do now we had a 40 year trade deficit and, you know, its just crushing this country so sure china needs us as much as we need them. They ship 350 trade surplus into tuchu. S. Every year and ife were cutoff it would crush them also its a little bit of give and take here but do it in a responsible way. We cant let them be in a runaway train. Aggressive action might increase prices here and obviously be good for steel jobs but what about consumers of steel. Theres many Domestic Industries that would complain. I heard that argument so many times. First off the increase when people look at a headline price of a product whats the true cost to the consumer we have a 20 trillion deficit we have communities that dont have jobs. You have crime and true cost of the product. Its the headline price of the product. Were paying for it one way or another. There is someone that does a lot of business in canada and i think on the mexican boarder as well whats your expectations looks like the first round concluded with a very aggressive time line going forward. Thr going to meet in september and they want to wrap it up by the end of this year or First Quarter. How much do you think is actually going to get done when it comes to machg the tough rhetoric from the trump administrati administration. Remember canada and the u. S. Doesnt have a trade deficit we do two way trade. Im the perfect example. Our company is a Great Success story. I have one plant in canada i started with five employees. We have 15 plants in the u. S. Now with over 2,000 employees so this nafta agreement for Many Canadian and u. S. Kpacompanies worked well. Where the problem lies are these companies that go to mexico and have chronic trade deficit with mexico its not the same. Mexico is not the same as canada and the u. S. There are issues and its appropriate to talk about those. And we need to address it. What do you mean . Well, its 70 billion trade deficit, you know, coming into the u. S. From mexico those jobs are going there for a reason theyre going there to circumvent good paying jobs and labor. They dont have the same Safety Standards and they dont have safety and then coming into mexico is particularly the Auto Industry theyre coming in from third Party Countries being assembled in mexico into cars and then circumventing duties that would otherwise be in the u. S. By shipping a car into the u. S. So now you have a trade in mexico car where really most of those are coming in from other countries that would otherwise apply to if they came into the u. S. And the products coming in as a whole. Were out of time well see if thats a good thing or a bad thing thank you for joining us. Recode is reporting that the former ceo is going to become ubers ceo recode said two other executives are said to be in the running. Had a discussion with jim and its only 61 governments and wasnt running close to what ge was. No, it might be the next act but this is the top ten about what uber is looking for its the type of executive the type of even cultural mix that theyre looking at. Theres no question on a Global Corporate world its worked in his favor and that might be what theyre looking for. Lets get a news update with sue herrera. Good morning. A wide investigation of the Pacific Fleet after two recent collisions today american, singapore and Malaysian Armed forces are searching for the sailors missing after an early collision between the uss john mccain and oil tanker five soldiers were injured and the mccain suffered significant hull damage. Theyre extending the search to all of europe. An overnight raid took place earlier today. Authorities say they do know the identity of that driver. Big ben sounded the hour for the last time today, almost four years of repair work after 12 deep bongs at noon local time the bell begins its longest period of silence since it first range out in 1859. Fans are flocking to the Hollywood Star of the late jerry lewis. Flowers and a picture of the entertainer grace that star. His family said he died of Natural Causes on sunday at his Las Vegas Home the actor and comedian was 91 years old. Youre up to date. Ill send bakt downtoit back do you. I think i read that he has two stars. One for his film work and one for tv so thats an interesting distinction. Thank you, sue when we come back more on the shake up in the president s inner circle former secretary of state is with us. And well bring you up to date on what is going on in the markets. Nasdaq under performing. Squawk on the street will be right back dont go away. Good to see you we have been talking about how the index, the major index is coming back flirting with a 3 decline but theres a tired feel underneath the surface for awhile small cap stocks underperforming and we talked about all of this. You see Economic Growth on track looking good august being august. I dont think theyre going to get that kind of a seizure. Maybe some sort of digesdigesti because youre right housing starts, consumer confidence, the yield curve, none of them is pointing into the red alert category so i would tend to say that its a disectio digestion that would be taken advantage of they continue to do well. Credit markets are pretty well behaved. How does it own that out for you in terms of the end of the year. August is being august i guess with this volatility emerging markets are doing well. Financial conditions are supportive you know, this is the 4th time in the last 10 years global earnings measured by the all country world index have been 30. They did in 08, 2011, 2014 and right now. Every three years. This time i think we push through and we have to support these well above average valuations for this market. One thing that is certainly helping when it comes to the emerging markets trade is the dollar getting weaker by the day again today thats what stands out to me in terms of the action is that a trump trade . It is a little bit of a trump trade. Its also a little bit focused on strength in the euro and strength in the yen based on the potential for changes and monetary conditions and certainly better Economic Growth in europe but heres the thing the dollar may not continue to go down. Theres a lot of short positioning right now. We have seen a lot of that and now were looking at a fed that might still hike Interest Rates late they are year its one of the four drivers for emerging market stocks and great growth within the region and stable Commodity Prices and other supports that may keep earnings headed higher. Probably hitting toward the 2 level and not really dipping into below that. That would be a new low for 17 right well for 17 but i think the real question is whats going to be happening with inflation. Yes we do have the lowest Unemployment Rate in the last 16 years. We do have questions about whether thats going to cause the fed to sit on their hahnds and not raise rates between now and the end of the year. The dollar probably will soften more into the high 80s on a currency basket level and also probably more opportunistic where were looking at low valuations relatively speaking overseas and were looking at a rolling five year relative strength thats at extreme lows. And they will hit them where they aim. We talk about how unusually calm its been and how long its been since we had our 5 decline in the big cap indexes it seems like those things are shadowing the conversation and now you have everybody saying they cooperate whats your call this time volatility should be in the market all this year we have seen individual investors buying. Buying when we had little dips and even buying when we havent. Thats steady in flow of money from the individual investor something we havent seen in a lot of years there were net outflows through much of 2016 to 2017 we have seen it across the industry as well thats a plus supporting this market and helping to keep those dips from being any more significant. We have seen two 1. 5 dips maybe thats all we get. I dont know if holding off and waiting to buy the big dip was the strategy. Well see how that plays out into september thank you very much. And as we head into a break here taking a look at shares of herbalife on the move soaring after announcing a selftender offer and a growing private transaction. The stock up is 9. 5 plus when we come back, icahn out. Well discuss the latest shake up in the president s inner circle, what it means for his agenda and more. Former undersecretary of state with us when squawk on the street returns experience advanced Safety Technology at the lexus golden opportunity sales event before it ends. Choose from the is turbo, es 350 or nx turbo for 299 a month for 36 months if you lease now. Experience amazing at your lexus dealer. Another shake up over the weekend. Aman is outside of the white house with more on that. Good morning. Good morning, carl resigning that roll. I chose to end this arrangement with your blessing because i didnt want partisan bickering about my role in anyway to cloud your administration. Called carl icahns failed raid on washington. He may have been using that position inappropriately to line his own pockets. He denied any wrong doing and the white house has no official comment on this today beyond what they have said previously talking to some aids here at the white house today on background they emphasize that icahns appointment was done during the transition and never formally ratified or implemented after january 20th that was after mr. Trump was sworn in as president of the United States and that might have some legal significance in all of this. Some of the legal issues well touch on what icahns role was. No official portfolio or set of responsibilities and no government salary so well wait and see if theres any other fall out but carl icahn officially out of the inner circle. For more on the president s legislative agenda were swroined by the former under secretary of state for Economic Growth and environment its great to have you back on the program. Good morning. Great to be with you carl. Normally narcotic wouthe mard love to talk about a big push for tax reform whether the relationship between the white house and ceos can be saved. How is this going to fall out . Well, that is a big issue because he relied very substantially on the wisdom of a lot of very good ceos and his advisory groups and now of course theyre disbanded because these people were leaving in droves i think also while there should be a lot of emphasis on what the tax reform proposal is going to look like and much of it is coming from the congress, theres a number of issues between now and then the budget appropriations that comes up at the end of september and also increasing the debt ceiling unless the congress can agree on a new appropriations bill and do it relatively soon we had what we had in 2013 which is the Government Shutdown and unless the congress can agree on raising the debt ceiling we run the real risk of a debt default. Perhaps temporary and perhaps longer those issues will be complicated and hit the market quickly and will divert attention from the tax reform proposals which they want to put forward at some point. So given how meaningful those distractions would be its hard to find people that are willing to go out an a limb and suggest whether or not a default would happen if is your thinking any clearer . I cant really improve on that i think theres so much uncertainty in washington. In the Congress First of all because you have to get the Freedom Caucus on board. And theyre not going to do that so we still dont know what the white house is going to do the treasury secretary is urging the congress to pass a clean debt increase, debt ceiling increase and do it very quickly so you dont come up to the brink but theres other members of the administration but also credibility coming into question with your alabama lice. 2011 lead to the drop of our aaa credit rating. I wanted to get your quick thoughts of geopolitics and expertise and the market is paying attention especially around north korea the tonight the president is said to address the nation on afghanistan. Does he need to reset his rhetoric, strategy at all when it comes to korea after the fire and fury guam threats, guam tourism boost that came the last few weeks . Well i think he does and its how do you work in a comprehensive way with the russians and it remains to be seen what this diplomacy is going to look like topgs of war is one that the pentagon has been very leery of because theres a lot of koreans right near the dmz and a lot of americans there and we have a lot of allies so to get that war started would right at the very beginning entail a huge number of losses of lives so needs to have a strategy that goes beyond the rhetoric and it has to be done relatively quickly. Its certainly true we cant continue to allow the koreans to continue to develop Nuclear Capabilities on the other hand, war being the last option, somewhere in the middle there needs to be a strategy and it needs to be worked out with china. As relates to trade issues would you read into anything the departure of steve bannon instead of taking off the table more aggressive restrictive trade measures or do you think it remains an open question as to what the stance is going to be of the administration. It is in favor hawkish trade policy and hawkish in the sense you take a tough line without alternative measures, for instance, get rid of tpp but there is no plan b for strengthening our trade ties in the pacific. Thats one example i think the president pulled back a little bit visavis china although he did a number of things that irritated them for sure in order to get their cooperation on the big issue of north korea. But there is still a notion, particularly among trumps base, of taking a much tougher line in asia and also well see with respect to nafta whether the administration wants to come up with an agreed solution to reform nafta or really wants to go out and be so tough and try to get things obtainable by either the canadians or the mexicans and blow it up and blowing up of nafta will be very disruptive. So finding the right kprimz may mean that his base doesnt get as much as they want to blow it up, it would really endanger a lot of trade and the American Business community and American Workers would be adversely affected interesting you bring in one last question here, bob. You bring up an issue for a lot of the talk on nato, nast yashgs even the wall trade war, fire and fury and tonight afghanistan, at the end, the president takes a net conventional path. Do you think thats fair can we start to build some pattern recognition at this point . So far that has been the case by and large withdrawing from nafta was a from tpp was a fairly radical step but other than that, with respect and nafta, at least he decided not withdraw he decided to improve the agreement, renegotiate the agreement. He came around ultimately on nato in article five so for the moment he has not taken disruptive measures. His rhetoric has been very tough. And acrimonious and very unsettling to allies around the world on trade and many other things the notion of using troops, for instance, in venezuela the fire and fury with respect to north korea the actions are more moderate than the words the danger is at some point he could get frustrated or provoked they could take more radical action in the area of trade that could cause a trade war and they could do something very disruptive in some other part of the world. But for the moment, i think cooler heads have prevailed on most issues. Hes got a number of rational people around him. It is very sound and the secretary of defense has evidenced a lot of very sound wisdom the way he advised the and the way he spoke about the issues. And mcmaster, the National Security adviser is a very moderate guy theyre tough people they want to be assertive. Theyre not rational people. He may be tough in the language but not erratic or disruptive in his policies it remains to be seen. Hes very hard to predict. Sure. Bob, thank you so much. Its good to see you good to be with you thanks as we head to break, take a look at shares of adp. The Payroll Processing board voted not to nominate any of hershing squares candidates dont miss this interview on mad money tonight with the ceo of adp squawk on the street will be right back risk of burst pipes and water damage. Soon, Insurance Companies wont pay for damages. That is, not if they can help prevent damages from happening in the first place. At cognizant, were turning the industry known for processing claims into one focused on prevention with predictive analytics, helping them proactively protect the things that matter most. Get ready, because were helping leading companies see it and see it throughwith digital. After two straight weekends of losses for the s p 500, it is time to buy the dip or back away find out at trading nation more squawk on the street coming up when a fire is going on, youre not thinking clearly, so they called the Fire Department for us. My first truck was on the scene within five minutes. I am grateful we all made it out safely. To protect what you love, call 1800adtcares welcome back to squawk on the street. Tech is standing out as the worst performing s p 500 sector. Semiconductors the big