Good morning, good afternoon, good evening and welcome from wherever in the world you may be watching. Im Brian Sullivan thanks for joining us. Youre coming off a 767point drop for the dow yesterday that was the biggest drp of the yea year at one point the markets were down nearly 1,000 points we came back a bit futures are slightly higher. At one point down 950. The currency manipulator tag that trump threw on china last night could rattle the markets again. China making a move this morning to firm up its falling dollar setting a peg to keep it from dropping more. Which has futures bouncing back a bit. We are up right now 73 points. S p and nasdaq, i get it, cold comfort. We lost 760, were up 66 still we are in the green, at least at this hour were not seeing a sell followthrough in the markets. Heres what were coming off of yesterday. Every dow stock fell the average decline of a dow stock, 2. 7 . 12 of the dow 30 fell more than 3 the dow is now 6 off its july highs. The thing drivin
Thatdominated yesterdays action, that along with chinas currency move. Overnight Chinas Central Bank setting the yuan mid point firmer than many expected. That happened at 9 00. We saw a turnaround in u. S. Equity futures which were down overnight as much as 600 points at the lows. Right now a positive open across the board. S p looking to be up by 11 points dow jones up by 102. The nasdaq looking to recoup 44 points as for u. S. Treasury yields, we saw a 2016 low also. We had the tenyear note at 1. 758 overnight we breached that 1. 7 level. A key level here. We have cnbc reporters everywhere this morning covering the Market Reaction to this escalating trade war willem marx is in london well get to him in a moment, but across the world to china. Eunice yoon is on the ground in beijing. Reporter china strongly opposes being labeled a currency manipulator. The central bank, which manages a floating currentry cy exchang rate called the move unilateral protectionist behavior that violates
Against the dollar late yesterday. The u. S. Treasury in the day labeling china a currency manipulator. Since then Chinas Central Bank has stepped in we well speak with white house chief Economic Advisor larry kudlow in a few minutes. You and i were talking yesterday, jim, about what we might expect in the market during the course of the day the move down in yields and the 10year in particular also caught a lot of peoples attention. Here we are a day later. We looked like wed be down sharply after other markets opened down. We have now rebounded at least in the futures market. What are your expectations i think that you cant buy enough opening there was a lot of money committed on the sell side i dont know how much short, between when we announced there was going to be designation and probably right to the special last night apple 185, microsoft down 5, facebook down 20 these were very big prints over and over they just kept hitting the bids, hitting the bids, hitting the bids they wer
Welcome to you you and i were chatting about the new space spot that were going to talk about. How is that indicative to risk in this market. You have a spak, which people doing it as long as i have they know the history but its essentially a blank check to merge with a company thats going to take people to space. What does that have to do with the fed it has to do with the risk mentality of people out there. If the fed is going to drive rates down to the negative, people are going to go out and try to find Investment Opportunities and i think this is the perfect metaphor what we saw in the markets the facts were talking about stocks like chewy shows the mentality here of how people are thinking. Lots to discuss over the next hour welcome back. Great to be back. Wouldnt miss a pepsi earning day. Mike doesnt hear its an important company. The word he used is improper hp his words not mine Morgan Brennan has galactics plan to go public. Susan has details on a trade rift between President
Street that the Federal Reserve is likely to cut rates as soon as next month. With stocks back at record highs do you trust in the fed and keep pressing the buy button, guy no. I know it is wedding season dont use this song. It is amazing she is in my head if you are thinking about playing this song, dont do it. Theres no circumstance this song should be played at all. Sounds like he played it at his wedding. No, i didnt. Anyway, back to the record high. Yes, label me skeptical listen, lets go back a couple of months and i thought the s p 500 would get down to 2650 it got down to 2730 so i was off there. Here we are. I understand why it is happening, and frankly the reasons dont matter if the market went up and you were long you made money and thats the bottom line i will tell you, label me skeptical with 24 of global sovereign bonds with negative yields, with gold making a fiveyear high, seemingly breaking out to the upside, with utilities making alltime highs, with every asset on the