The dow has been up seven sessions in a row. S p is up six out of the last seven sessions you are talking the highest closes since late july overnight in asia, the sang high deposit was closed for a public holiday. The hang seng up almost 1 in europe, it looks like now most of those markets are in the green, one exception is the ftse down by about. 1 . If you check out treasury yields in the united states, another big story is what happens to the yields some of that movement started after treasury secretary told us that Treasury Department is looking seriously at the idea of a 50year bond for some time next year. Right now, the 30 year is yielding 2. 28 i saw him later in washington and he started talking about 100year bond for the next consideration. Did you prepare for seeing him by watching the interview we conducted . I did thats why i decided to take the 50 and up theante and ask him about 100. To beat the record, he would have to serve 13 years see, i knew it were you talking about the president or the dynasty he could work for president ivanka lets talk about the campaign the front running Democratic Candidates lined upsi side by sd in houston well go to kayla for an update. Reporter good morning. It was three hours of wide ranging discussion on education, immigration and more the discussion on health care. The cost, the customers and the role of the private sector this moderate divide was on full display. Senator warren was asked whether taxes would go up to pay for her plan, here is how she responded. On medicare for all, costs are going to go up for wealthier individuals and giant corporations but for hard working families across this country, costs are going to go down and thats how it should work reporter more than a dozen times, senator warren referred to her tax as a 2 cent tax as a small option that would pay for a wide array of programs democrats failed to discuss widely how they would hold china to act on trade. They didnt have a clear take on whether tariffs were good or bad. Pete buttigieg attacked the time line instead the president clearly has no strategy when i first got into this race, he scoffed and said hed like to see me make a deal with him. We will see whether democrats can refine their message there if this is in fact the state of play in a few months, guys i didnt see it i started to watch i sue Julian Castros opening remarks and i through in the towel. I couldnt stay up any movement in the top three . Someone moving in or is it still just the top three, what do you think . Reporter joe, it was interesting. A lot of people were looking for some sort of dividing line between sanders and warren who have been sort of attached at the hip policy wise. The only thing that differentiated them is whether they would end the filibuster which is hard to understand. Whether beto orourke could break into that top tier is unclear. He is at 19 in his home state in texas fielding a lot of questions about stances he has clearly taken on gun control and immigration and civil rights in just the last month. Hes someone who you could look to have a break outmoment. She pitched herself as a unifier. She borrowed the strategy booker and harris had been trying to figure out who exactly is going to be occupying the middle of this race. Vice president bieben tri vice preside Vice President biden tried to. I was struck there were virtually no issues about the economy . Reporter it was interesting. When they went to the first commercial break, they said coming up after the break would be requests about National Security, trade and the economy and much more. They did actually spend a considerable amount of time on trade, which doesnt happen in a lot of these debates it could be because they wanted to get to two things like the conflict in afghanistan and what one of these candidates would do there. Maybe they wanted to move on to other topics we cant know. They did tease it before the break but they didnt get there. The afghanistan question had not been asked in any debates to this point that picked up some Media Coverage too what about castro going after biden on his memory. Did that go over well or badly unclear how voters will take to this . It is clear democratic strategists did not like the way castro handled those moments he did it more than once in that moment where he was challenging the Vice President on something he had said a few minutes earlier. He challenged biden saying, is your memory an issue here. He repeated that line several times. Maybe it would have landed better had he said it once rather than three times. That was unclear you didnt think it seemed seemed completely planned which can is why it went off so badly. Look, it is ageism as a result, he gets headlines and we are talking about him. Not good ones talking about what a jerk he was. Kayla, thank you. Ill admit to something funny. I looked at huff post. And at drudge. I dont even look at huff post the drudge poll last time had like it said view results and you have to vote im admitting this i look down the list and im like, im just going to put andrew yang. Im not voting for any of the other ones he was at 40 . Last time, it was maran williamson won right yang had 40 maybe people want that 120,000. Ten families. If i vote for him, am i in the running . No. No. Okay President Trump making headlines yesterday speaking at a republican retreat saying hes working at a new round of tax cuts aimed at the middle class we are now working on a middle class tax cut for middle income people that is going to be very, very inspirational. It is something that i think is what everyone is looking for and will be announcing it sometime in the next year. Separately, he said he would consider an interim trade deal with china even though he would prefer to make it a full agreement if we are going to do the deal, lets get it done. A lot of people are talking about it i see a lot of analysts saying an interim deal meaning well do pieces of it it is not easy or hard it is something well consider but we are doing very well the comment comes after a wall street journal report that said china is looking to break the dead lock narrowing the scope to only trade matters putting National Security issues on a second track. The last couple of days, weve gone wild on the vaping stuff. Did you see the journal today . The frenzy ignores adults a vaping ban will spend smokers back to the pack those are people who made the decision if you have an oped page and devote half of the page to defending vapors or the Vaping Companies they are saying it is a personal responsibility thing, right . If you have candy flavored nicotine products. I understand letting people do what they want to do it went up 75 in use from 2017. 75 when you are 25 off of 75 the next year. Thats a lot of kids and juul in particular was directly marketing towards children do you want to go confiscate the vape beto, thats a good idea im not sending in. We have more to come including more vaping debates and more democratic debates when we come back, well talk u. S. Equity futures and why commerce sales could be weakening and why amazon could be to blame. A look at the biggest winners and losers in the dow. Welcome back to squawk box. Retail sales coming up at 8 30 eastern. Remember the july numbers were sharply higher than expected thanks to amazons prime day sale some are warning now that the august number could disappoint as a result as spending was perhaps fulled forward to july by all the discounts that is something to watch we are on wall street record watch with the dow less than a percent away from new highs. Joining us now, our guests, go morning to both of you i remember the last week of august, everybody was like in a panic that somehow everything was going to be terrible and come back in september and now the opposite has happened. Now the question is, are people too exuberant . The market has been holding straying at about a 17 multiple earnings season is coming up in a few weeks. We are getting to a point where the 2020 numbers are going to start gettingdo downgraded. Im bullish. Maybe hopes too high for a downgrade now. There is margin pressure there is a fed that is likely going to underdeliver next week. Underdeliver because you think the market wants what . And what do you think they are going to get the market wants four cuts over the next year or so the are market is looking past the strong indicators and looking for a more aggressive fed cycle. It seems to be sticking to the script of the midcycle adjustment and nothing more. There is a fork in the road where the fed says we are doing 25 but dont get your hope up for much more. And there isnt a trade deal and we see the earnings downgrade happening and there is maybe a ceiling on the market. You are more bullish, david . Weve seen this story before where manufacturing goes into contraction and the consumer bails it out i wouldnt say im more bullish but i would say i think there was an extreme amount of pessimism being priced in over summer it rewrites the playbook which would result in further margins. People were pricing in a recession tomorrow i think this is classic wall of worry climbing we are going through here consensus is still looking for 10, 11 . We are in a trend growth economy. That is not going to come through. What do you think the fed does i would agree, they send a message that look, weve got the lowest inflation rate. The fed watches north of 2 . Theyll have to address what is happening with Monetary Policy outside the u. S. With trade and reasons why they are extending rates. I think we will have a problem with earnings. Im worried about the headlines. Not only the Third Quarter but looking into the aggressions, those numbers start to come down margins are also starting to come down. Also, there is a limit multiples are starting to put on these. If the number comes down to 10 earnings broth Earnings Growth to 3 growth, prices need to adjust. If we get a china deal, i dont know a christmas time china deal, what does that mean . I think the big risk there is if you are a business and youve operated in this environment the last 12 to 18 months, what does a deal mean to you are you going to ramp back up investment spending . I would argue the answer is no you are saying, well we have a deal today but does that mean we have a deal tomorrow Business Confidence is damaged for the foreseeable future and any sort of rebound. Remember, margins were at 6 in 09 they are at 12 as of last year. I believe it is ongoing and will continue to go on for years. A lot of that bull Market Dynamic was driven by rising margins. A trade war, even if it is a small deal now puts them in th margin stories what leverage do you have in the National Security . Nothing on trade you lose if the security thing has an issue. Weve always thought there was some sort of kick the can down the road that would be one way of rationalizing. Now what have you got . Now that youve given away the trade, i dont know how you would do that. Coming up, secretary mnuchin and what he had to say later, crack down on the gig economy and atwh one uber investor is telling us about the new bill in california i can shine. Imma do what im made to do. Built for excellence. You start from the foundation up. The excellence is reaching dreams and chasing them at the same time. 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. Breaking news on wework in a new sec filing, its Parent Companies says it has supplied the list to provide to nasdaq. And any chief executive who succeeds him will be selected by the board of directors acting as a group, not by his spouse in other headlines, it will limit neumanns ability to sell. All of these things to make sure they deal with the huge governing problems before you get to whether the Company Works or not they also say hes going to give any proceeds he receives from real estate transactions to the company. These steps would make you feel marginally better he tried to pull it offver on us anyway. Worse, it still highlights the issue. And hes already taken over 700 million out of the companys holdings where were these people four weeks ago . Time for the executive edge. I hosted an event in wash u that brought together leaders where we discussed and debated our nations top policy challenges more from secretary steven mnuchin. Later in the afternoon, i asked him to share his per spec is tiff on Corporate America whether he would sign the round table on the new definition of the purpose of a corporation his answer would surprise you . I wouldnt have you wouldnt have signed it no. Fascinating because you disagree with the premise . Because it is not a simple answer people on a lot of these issues want a one sentence or two sentence answer. Obviously businesses should have a purpose. To be profitable, you have to have a purpose it is not as simple as saying we have a purpose or we have profits. The problem is creating the one simple answer is it doesnt fully explore the issues i think Companies Need to have a purpose and have profits there was sort of a moment there where people in the room gasped i doubt it. You doubt what . It was a New York Times audience there was so much push back. Cantor was in here first of all, he leaned into the answer i give him credit. It is so much easier to give the virtue answer. So much easier to go along with it than to have your whits about you and defend Milton Freeman and what has worked for hundreds of years now im going to be defending Milton Freeman read his article in 1970 in New York Times magazine. Embedded in this article that had the headline effectively saying that businesses didnt have a responsibility to the community. If you go farther down, you understand what hes saying. If you are focused on profits, you are going to be taking care of the community it is a trickle down effect. I also think the question is whether this new business round table headline has been taken to a extreme too. If you read that statement, it is not saying these are at cross purposes right Milton Freeman was speaking at a time when corporate activist was at a high. So companies performed very badly where they had been saying we are doing good. Ive had people massage me from the business round table saying, look, theres lawyers involved i thought they were saying, look, weve always taken care of issues i thought they were saying, liz and bernie, we are going to try to make it better for you. We know wei caused the 2008 crisis you are playing with those that dont understand and havent thought it through that cross purpose i agree people that are already anti whatever you want to say. Looking at corporations, they take a cynical view point. You wrote this down as if you are going to change any behavior you are still going do everything youve been doing chasing profits. I think what the ceos were doing is responding to the changing Public Perception of these things after the great recession. You asked him about guns too . He was great. He took on every question. You must have been great. What did you ask about guns . I asked him about the role yesterday those are 45 companies came out visa came out. 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But youre not mad, because you have e trade, whos tech makes life easier by automatically adding technical patterns on charts and helping you understand what they mean. Dont get mad. Get e trades simplified technical analysis. Announcer welcome back you are watching squawk box. Good morning, everybody u. S. Equity futures have been indicated higher an seven days in a row of gains. Six days out of seven for the s p. Do you up by 107 points. Nasdaq up by 21. We are within spitting distance of new records for the do you and s p. Smiledirect shares opening low. I said it yesterday, and grin is not available. Think of all the stock sim bells. Grin is grind rod shipping holdings smile too many. They could have done that. They did st sdc smiledirectclub. There is a lot. Remember soto. Lbv for stien way. There are really good symbols that could help. Broadcom their ceo said it isnt quite in rebound mode yet. Still to come, in california changing gig workers to employees. What this could mean for uber, lyft and beyond. Later, okta ceo will join us to talk more. You are tcwahing squawk box on cnbc Classical Music playing throughout hour 36 in the stakeout. As soon as the homeowners arrive, well inform them that Liberty Mutual customizes home insurance, so theyll only pay for what they need. Your turn to keep watch, limu. Wake me up if you see anything. [ snoring ] [ loud squawking and siren blaring ] only pay for what you need. Liberty. Liberty. Liberty. Liberty. Car vending machines and buying a car 100 online. Vented now wev