Points you were talking about down about 1. 8 for the dow and s p, down 2 for the nasdaq s p indicated up by 7 points this morning nasdaq indicated up by 30 points overnight in asia, some weakness in stocks there, too probably started by what happened here. The nikkei actually ended flat the hang seng was off by three quarters of a percent. The shanghai was down 0. 8 in europe, where there is active trading taking place at this hour, you will see there are green arrows across the board. The biggest gainer of the three major averages is the cac up three quarters of a spent. More modest advances for the ftse and the dax treasury yields will be watched closely. Treasury yields went into a free fall on the feds report yesterday or the idea that it would be one and done. You can see the tenyear barely held on to a yield of 2 that was the weakest level in three weeks. This morning trading back to 2. 04 . There were two key words that sparked a strong reaction from the markets and President Trump. Lets get over to Steve Liesman in washington. Bottom line from yesterdays meeting is the market expecting one less rate cut from the fed and theres criticism fairly widespread of jay powells communications lets look at the probable leai and the change you had a 70 probability of a second cut coming in september before the meeting thats down to 39 it was 100 probability by december, and now thats 64 so still pricing in that second cut. Its the third cut that is pretty much gone away. Look at the next screen. It will show that you a 57 chance of that cut happening in december third cut of the year, two more from here, thats at 33 jay powell did not appear to be confident nor did he clarify the ambiguity of the policy statement. It was a somewhat hostile press conference markets sold off after powell said this was a midcycle adjustment and not a major easing cycle the committee is really thinking of this as a way of adjusting policy to a somewhat 34 more accommodative stance. Again, were thinking of it in the nature of a midcycle adjustment to policy there is a lot of disagreement on the street about where the fed goes next. This is a survey we put together with my crack producer 50 basis cut by year end,ed additional 50 from barclays, bank of america and deutsche 25 basis cut for goldman, jpmorgan the president saying powell let us down. I dont know if you want to talk about it now or at 7 00, but i think the market misunderstands what a midcycle adjustment is. What do you mean i looked at the last two midcycle adjustments, one in 95 and waone in 98 95, three basis point cuts over seven months in 1998, three basis point cuts in three months. If youre worried he called it a midcycle adjustment he just met where you were priced. We only have enough dry powder for an adjustment went doe have enough for an extended easing. We dont. Right. So tell you what i thought yesterday, which was weird once again, the market hears from powell. You know, things are still pretty good. Theres maybe a little bit of weakness in europe i dont think well need a lot to of accommodation. Thats bad that makes no sense. Then from the context of the dollar, it looks like europe is weak, their currencies you saw what happened to the euro yesterday. Dollar straight up. That wasnt supposed to happen from the viewpoint that were not going to get anymore competitive currencywise with a one rate cut, and europes malaise threatens to really keep our dollar too strong. For them to drag us into their slow growth a little bit did you see what Richard Fisher said . He wrote a letter to a bunch of people yesterday he said his mother used to tell him when his brother did something when he did something stupid he would blame it on his brother, he said if bobby stuck your hand in the toaster, would you do that, too . Richard is making the point of if the other Central Banks have these policies that maybe are not working so well, should the fed they are calling the shots over there thats the sad thing about it. Are they . I dont know the central bankers are we have to react to them. Do we do we . Thats part of do we really our growth is better than their growth we follow our own policy were so hung up on this dollar thing youre criticizing him for it or youre saying he came under criticism for it, maybe its unfair i also thought my initial response was my gosh, down 400, 500, were pushing on a string and the market finally realizes it this is not a panacea. I thought that hopefully that wasnt it, it was the disappointment of not being a more extensive cycle elerian is suggesting what the markets want are what the Central Banks cant deliver and wont deliver, having extended growth that has to come from other places one last thing that occurred to me yesterday, steve i can look at this two ways. It could be good that were importing this inflation from europe and slow growth, we can keep our pedal to the metal and maybe nothing bad will happen. We can have an economy with lower rates. The other thing that scares me is because europe is so slow, are they causing us to keep rates below where they should be andmalinvestment occurring . I think those are good questions, joe what im trying to figure out is this, did powell let me set the stage a bit. Ive been talking for a long time about the market being very aggressive relative to where i thought the Federal Reserve was. We have chronicled at least five Committee Members who have said they didnt want to cut at all so you want to think about what was going on in that room yesterday and how much scope powell had to actually explain himself relative to where the committee was in the meeting that said, there was an adjustment coming. Yesterday some of it happened. I think the key adjustment was backing off that third rate hike, at least making it more uncertain rather than definitively priced in thats why i think it was not a miscommunication or a communication error. Did powell mean to do that or was it accidental . Its either that or continue to get led around by the markets. If you want to break free from them a little bit and say youre getting out of whack with where your expectations are and where they should be ive done nothing but ask fed officials the same question. Are you happy where the market is priced . They did not push back against it the reason i think i disagree a little bit, they could have done that before, now they want to do it now after the meeting maybe thats right but i think you mean they should have communicated that message earlier . It didnt seem that well thought out to me. The Market Reaction was initially disappointing, dont market traders realize we have two less months of the Balance Sheet rollof off, we got a quarr pointless. The adp looked okay. We got the quarter point, some easing here. If things are okay tomorrow i think its back to going to new highs. Its the whole weirdness of the markets being so hung up on the fed and what the fed will do ver versus what the economy will do. I always thought they had it backwards. I would take 200,000 jobs over two rate cuts. The market wants 20 point cuts well be at minus 3 by then, but i dont get it we do have some other voices we want to bring to the table this morning we have the global head of rate strategy from td securities. And eric knudson joins us. We can relate gate what yitigat trying to say and the way he said it, but you saw the expectations for the rest of the year i think thats what will move markets one way or the other am i right ill go to you were looking for another two more cuts this year and another three cuts next year let me ask you a different question, where were you 24 hours ago . We have not changed our call. Okay. I think what the market was disappointed with is there was no clear reaction function i think steve is right, the committee is divided here. Some want to do one or two cuts, others are nervous about Global Growth slowdown feeding into the u. S. That division in that committee was clear. And williamson wanted to do at least two and go aggressively exactly you have people across the spectrum i think it was not so much a miscommunication as they just dont know i think its very hard for the market when the central banker says we dont know were you surprised by the reaction of the market since this was the expectation or was this buy on the r50uumor sell on the news in. I think we went in with a lot of expectations. We wanted the fed to clarify that they will continue to cut and they didnt do that. Should he have just shut up honestly right or to say that midcycle adjustment could be more than one cut. The market is pricing in four, maybe thats a midcycle adjustment i think the fed is trying to sell this hard as an insurance cut. I think the bond market is not convinced that essentially insurance cuts work. Rates are already low. Does housing get a boost does capexpic pick up thats where the markets reacted with disappointment does jay powell realize that the markets can put him in a box . I think he realizes theres a third issue of solving the worlds problems is the challenge here almost nothing changed in the official statement the only thing that changed was reference to the Global Economic situation, which is not necessarily anything the fed should be worrying about we have a little didnt view we were one fewer rate cut than what the market was pricing in the market was pricing in three to four, two this year we were always one under that. Even prior to yesterday correct we think part of what happened yesterday you could look at the Market Movement and say powell muddled the communication. Theres an element of that if you were jay powell, what would you have said . What could you have said that would have sort of threaded this needle without coddling the market he could have been clear this was going to be a multicut m mid it was midcycle but there would be multi cuts. What happened was he was taking out the tail upside expectation round of 50 basis point cuts were up 20 on the year instead of 21 pe multiples went from 14. 8 to 17 are you calling this a tantrum . Is this a bigger issue there was more of a heart drop moment i sort of had it i think you will keep going around Jerome Powell says he says what he is thinking and it makes total sense, thats what you cant do as the fed chairman a midcycle adjustment, maybe we got a little too high, the december thing was wrong, well take this back and take a step back and see what happens. Well see what the data says. Were only talking about at the worst levels it was 2 2 for the nasdaq the s p and dow were down 1. 8 to your point were still up 20 here with earnings basically flat thats it its about stopping focusing on the fed. That was largely priced in and getting back to focusing on the real economy and what will drive earnings or Economic Growth from here the biggest concern we would highlight out of yesterdays move was the response of the dollar the fed has not cut for ten years dollar index up 0. 6 . Against the euro it was up more our expectation is that the dollar will start to soften later this year as Interest Rates converge and Economic Growth converges if you get a situation where the dollar is rallying from here, that puts stress on the entire Financial System and does create the potential for some kind of competitive Monetary Policy. What can you do . I would say this is a race to the bottom but we have blown through zero in a lot of countries. Thats an area of concern thats not our best case we think dollar is overvalued, it should be softening from here if it does, that would cause us to be much more cautious i would agree with that the fact that the fed i think its remarkable that for the first time theyve explicitly linked their fed rate cuts to Global Development if the focus of the fed to cut rates is that you want Global Growth to pick up, but in the process you are getting a stronger dollar, that will weaken yen that wont help Business Capex i think one thing that the market didnt like is when he was asked about recession, he fumbled a bit. I think the market wants the fed to say if we see a slowdown were going all in we didnt get that strong reaction function aspect from the fed. If the data does stand out weaker, were very concerned im not sure the u. S. Can continue to grow as this one beacon of strength when the rest of the world is slowing. You look at europe, its all slowing. Im concerned this Business Investment weakness is finally going to show up in hiring data will be critical. Well leave it there. I hope youre wrong. You may very well be right thank you both thank you coming up, beyond meat shares plummeting again today. We have a list of surprising names cashing in on that secondary offering including olympic snowboarder shonn white. And news out from a beyond meat competitor as plantbased fake meat goes mainstream. Oh that guy is so creepy. I like him, but creepy creepier than ronald . I think they tried to outdo each other ronald is a good clown hes not a clown to be afraid of he has those things for kids Ronald Mcdonald house yes hes a good clown okay. Not one of these scary clowns as we go to break a look at the premarket winners and losers in the dow. I want it that way. I cant believe it. That karl brought his karaoke machine . Aint nothing but a heartache. No, i cant believe how easy it was to save hundreds of dollars on my Car Insurance with geico. I never wanna hear you say. No, kevin. No, kevin believe it geico could save you fifteen percent or more on Car Insurance. Geico could save you fifteen percent beyond meat. We were talking about food beyond meat shares are falling again. Beyond meat plans to sell three quarter million shares, and most of those shares are coming from early investors, executives and employees. The ceo plans to sell about 6 million in shares. The cfo, mark nelson, selling about 9 million klein and perkins is cashing in nearly 1 100 million of its stake. Jack welch, evan williams, sean white, General Mills and the Humane Society are cashing in. So anybody i ever heard of who bought stake is now out . Why are they doing it at 160 i guess they got to do that to get someone to buy it, right . You cant do it at the market price. Dont think theyre doing it out of the goodness of their hear heart. To have the ceo and cfo selling big stakes those are not big compared to what they have should you be locked up or should you not we have companies that are not even public trying to sell shares before they become public thats worse. If it was you and it was up how many percent sure, but if i bought the ipo even those people some of those have flipped it. Theyve done well that stock is up. Theres a lot of future growth in that stock. If youre considering buying the stock now and you see everybody who has a stake in it selling because holy cow i cant believe it has risen, does that give you massive confidence about what comes next . No. I saw it side by side for the regular burger versus beyond meat, that was sort of earth shattering the one thing was cholesterol. Everything else costs twice as much. Calories higher. Fat higher sodium higher. Theburg s burger is not for loss, its if youre vegan i thought i felt queazy im not sure but someone else had similar did you eat a whole half of a burger ive done that burger and the impossible burger. You had no issues later . Yes he can eat 12 doughnuts, hes fin. Thats right. If i eat 12 doughnuts i cant. Ill get a new belt. Now its hot in here youre lobbying for the feel how cold i am. Have you ever seen people were on tv theoretically. Yeah. I louse that in the loosest possible sense cable. If its hot, youre going to be when its cold, youre like thats why people in meetings you have pants and sleeves on they dress me like this. Im cold by the way, its august outside. Its probably 65 degrees in here now. No this is why we have to talk we should talk about the attire you can make it cold and everybody can wear a blazer or a fleece thats why hedge funds keep it cold and wear the fleeces. Letterman would keep his studio freezing wanted the audience to be excited. Ceos, some of them have 58 degrees. I need that at meetings at cnbc. I do i need it colder than that coffee and 58 degrees news out from a beyond meat competitor lets get to adidi roy good morning. I have my fleece here with me. Mine is on my legs. I have the same thing. So funny. We need them close by, right right yep we have our little one market logo here. Very nice. Burger king has Just Announced it will roll out the plantbased impossible whopper to more than 7,000 Stores Nationwide starting next thursday. The news follows a successful test launch of the impossible whopper at nearly 60 locations in st. Louis the suggested retail price will be 5. 59, about 1. 40 more than the cost of a regular whopper. This is a big win for impossible foods which is valued at 2 billion and backed by invests like jayz, katy perry and serena williams. The other major chains carrying impossible products are white castle, red robin, applebees and Little Caesars impossible also, by the way, just received fda approval to start selling plantbased ground meat at Grocery Stores and retailers this fall going head to head with beyond. You mentioned beyond meats secondary shares start trading today at 160 per share. Expect it to raise 40 million for the company. The company will use it for scaling up and marketing costs the stock now in the red back to you guys thank you good to see you. Good to see you when we come back, are you worried about your car getting stolen buy a tesla. We have new data on the cars most likely and least likely to get boosted. And later, debate night highlights that matter for your money. Democratic president ial hopefuls square off on everything from healthcare to trade. Squawk box will be right back. How do you gauge the greatness of an suv . Is it to carry cargo. Or to carry on a legacy . Its show of strength. 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