Turs the dow and s p are a little lower. Nasdaq is on pace for the fourth weekly gain. Being looking at raise yeah, the nikkei up and shanghai composite. The ftse is down slightly, actually flat. So is the dax. The cac is up about. 2 . The 10year is yielding 1. 779 in our tariff news du jour, the u. S. Is going to temporarily free more than 400 products from the 250 billion in tariffs imposed. According to documents said to be published by trade representatives today. Including items such as Christmas Tree lights, retractible dog leashes. What . How did that get on the list that wouldnt work for my dogs if it went out, when i brought it in, something would be attached to the mouth. Filters for kcups, tiki torches, grills, electric skate boards stemming from more than 1,100 requests from companies. Holding lower level talks in preparation for higher level talks expected in october. Here is what Vice President pence and black stones steve squartsman had to say. For too long, one administration after another, republican and democrat, were willing to accept extraordinary disadvantages to american workers. Those days are over. China trade talks with the United States. Youve been an advisor to the very top would you think a deal gets done by the 2020 election it is an interesting thing because, it is hard to know in a will start on friday their first group will come over in a week or two in october. Youll know by the time that meeting is finished it is sort of hard to say you know steve well how many times has he been to china . A lot he wants to set up university over there bringing work here i dont know whether you call it a love, not love relationship. He understands the way he does but hes also taken a tougher turn the gift he gave to mit to help them become an ai power center part of that is from the concern of seeing china so advanced. He looks at america and wants to make sure they dont get eclipsed it is interesting, him pointing out that today, theyll show those first cards this is about the chinese companies. It may not last on the same day. Weve seen a good will gesture and thank got the tiki torches are there. Just in time for christmas. Those are summer things some of the grill equipment too. Maybe it wont matter as much. Florida lets get to apple now, the companys newest iphones and watches are available on line and in stores today. Later this morning, well take you live to the grand reopening to the Flagship Store in manhattan where tim took cook i expected to be that spiral stair case that was glass is now made of stainless steel. The new version of the iphone operating system is now available. Early reviewers say you may want to hold off. They say version 13 is buggy 13. 1 is coming out of tuesday next week apple says users can wait and get the updated version. Another update, my new one is ordered. No way. Way i dont even know which one it is someone helped me go through the corporate red tape can you pass on your source no. No can everything be moved on yes it can be copied im getting a little sentiment al you wont when you get the new one. That thing is such a piece of junk, i bet they let you keep it they dont want it back the battery really does start. You are not going to miss it at all when you get the new one you would be surprised how many people on twitter responded to, should i get a new one you feed right into it. Air bnb says it plans to go public in 2020 they provided no Additional Details about the plan including whether it would take the direct listing route. Valued at 31 billion after the last round of funding. Postmates valued at 2. 4 billion ahead of an expected ipo as well the Food Delivery Service has already tapped Jp Morgan Chase and others what do you think with these, every company is its own situation. You dont necessarily look at wework or Smiledirect Club but has the overall sentiment changed . Some of the quality of these has become a little more suspect coming out the food Delivery Business is a competitive space. Air bnb seems different though wework and others, weve said the same thing if we are in such a euphoric sentiment, if wework cant get out the door, it is constantly being written down, it shows sentiment isnt too euphoric looking at air bnb, it can claim it is a Technology Company and it was there first right within other areas of the economy, tech is working into every sector. This is the hotel or vacation industry, air bnb, their technology and platform has created a much more efficient Business Model for providers of rooms and Vacation Rentals the s p is above 3,000, we are going into october so september is usually the bad month it bottoms. You usually see the turn arounds. The second half of september is historically when you run into trouble. We are seeing breath in the market hit new highs it is encouraging we are hitting a narrow rally here. Geding back to fedex everybody warning that they are the canary in the coal mine. It is right in line with average right now, you are seeing a normal pace of companies do you think there is a reported 3,000 or will we go right back to 2,300 . It is hard to say we had a run for new highs in april, then in july. Then trade headlines came back into the mix and the markets sold off here we are on friday. The most important day of these negotiations are we going to come in monday and have another headline. In the short term, there is the most noise but Going Forward, we have a constructive or a positive outlook for the rest of the year right a lot of analysts after the september sell off we are getting close to the end of the year it is coming if we are above 3,100, we are around those levels. When we return, well talk more Market Strategy we are hearing more from st. Louis fed president about why he decented he decented because he didnt want to cut by 50 basis points weve got that story after this. Then tech under fire the latest ahead of the big meeting. As we head to the break. Lets look at the biggest winners and losers in the dow. Welcome back. Fed president out with a statement explaining a dissent one of three discenters. The only one that dissented because he wanted a bigger rate cut. He said there are signs u. S. Growth will slow in the near term he cites the inverted neeld curve and proposes to cut aggressively now and raise rate later if necessary coming up at 10 00 a. M. Eastern in an exclusive interview. Joining us now our guests our guest host this morning is paul hickey from the spoke Investment Group simeon, how are you feeling now . We certainly had some is good Economic Data. The camp that says we might not get another rate cut is growing. At some point, there are low rates. Getting a handle of the 10 year. It will depend. Because of the landscape and pushing back to Market Expectations the fed was trying to switch gears. If they dont do it there that is related to Business Confidence our expectation is not a recession, we still think Business Confidence will stay weak they still feel we need to do something here whether october or december zwroo that cut again and feel good or bad what would concern you more about their view points. This is a Pretty Amazing week ever indicator released was stronger than expected and the fed cut rates. The market is expecting another 25basis point cut thats the point, if they dont get that cut, would that take the optimism is way i think because the market is improving when the yield is falling that is worth a part the higher yield isnt healthy that implies things are Getting Better in the economy. Evolving or moving out of this bunker mentality i think the trade uncertainty, everybody talks about it that is a big worry should things deteriorate further the question is how much is priced in. Does the fed cover trade tensions jo i think 25 basis points, well get that Going Forward i would expect there is a whole lot of rate cuts that could happen. Theyll take measures to keep things afloat. One tricky point about the data, when manufacturing did show signs of life this week, the issue is the first five months of the year, it has been improving. That epicenter is playing behind the idea of this rate cut still in the cards look at high yield rallying and look at small caps and midcaps they react reasonably well to the rate cuts. Why do you think that is there in the rate cuts similar to what we saw in the late 90s weve gone par di on the book to 60 cents on the dollar weve already had this return doubled. To that end, small caps have more exposure, would you be positive on that as well i think think about it from a leveraged standpoint 40 dont make any money if the economy does weaken a little, they are a little too exposed. Thank you for your time paul will be with us for the rest of the show coming up, this was the scene in washington yesterday. Mr. Zuckerberg, how did the meeting go today what was the message today, mr. Zuckerberg more details, squawk box will be right back indistinguishable muttering that was awful. Why are you so good at this . Had a coach in high school. Really helped me up my game. I had a coach. Math. Ooh. So, why dont traders have coaches . Who says they dont . Coach mcadoo you know, at td ameritrade, we offer free access to coaches and a full education curriculum just to help you improve your skills. Boom mad skills. Education to take your trading to the next level. Only with td ameritrade. Thats what happens in golf nothiand in life. Ily. Im very fortunate i can lean on people, and that for me is what teamwork is all about. You cant do everything yourself. You need someone to guide you and help you make those tough decisions, thats Morgan Stanley. Theyre industry leaders, but the most important thing is they want to do it the right way. Im really excited to be part of the Morgan Stanley team. Im justin rose. We are Morgan Stanley. Its an honor to tell you that [ applause ] thank you. Liberty mutual customizes your Car Insurance so you only pay for what you need. I love you only pay for what you need. Liberty. Liberty. Liberty. Liberty. Hi, mr. Zuckerberg, how did the meeting go today what was your message, mr. Zuckerberg can you assure lawmakers your platform will not be manipulated ahead of the next election did you talk about breaking up facebook did you talk about privacy regulation are you ready to deal with californias privacy legislation . That was our own reporter chasing down Mark Zuckerberg in the halls of capitol hill yesterday. He may have brushed her off but was more than happy to meet with President Trump and other lawmakers. The president tweeting this pho photo saying it was constructive that was zuckerbergs first time to visit capitol hill since over a year ago when testifying this time discussing cryptocurrency and some of the political bias some is Senate Leaders did not meet with him. He got a lot of grief in washington uk and eu lawmakers are even out for more blood this is his home turf. Hes getting a lot of grief here but hell get even more overseas some of the questions like would you be willing to get rid of whats app and instagram as a show of good faith and then well work from there well see. It looked like a perp walk. It is not. He was just going in. Thats right. That reminded me of mike huffman. A little more ordererly. When we come back, new numbers from the cdc on vaping related illnesses. That is ahead. As we head to break, lets take a look at yesterdays s p winners and losers through the at t network, edgetoedge intelligence gives you the power to see every corner of your growing business. From managing inventory. To detecting and preventing threats. To scaling up your production. Giving you a nice big edge over your competition. Thats the power of edgetoedge intelligence. But were also a company that controls hiv, fights cancer, repairs shattered bones, relieves depression, restores heart rhythms, helps you back from strokes, and keeps you healthy your whole life. From the day youre born we never stop taking care of you. Announcer welcome back you are watching squawk box live from the market site at time square. Good morning, u. S. Equity futures are up a little bit. About 55 points or so on the dow. Nasdaq indicated up about 17 and s p about 6 that would put it almost at 3,010. The number of vaping illnesses and deaths continue. Eight deaths have been confirmed and more than 500 people have been sickened this comes after President Trump announced a plan to ban the sale of flavored cigarettes vaping advocates meeting had been canceled yesterday. They say seven people have died. Officials continue to look for answers. Some stocks to watch today. Etsy shares are higher they set a price target of 68 the analyst says the push to encourage more sellers to offer Free Shipping and advertising can boost revenue and sales. Steelcase jumped the maker of Office Furniture expects sales to prize 2 to 5 . Shares are up by almost 6 this morning. Check out shares of xilinx, the longtime cfo is stepping down hes been in that role more than a decade that stock is down by about 3. 3 coming up, James Mcgregor and big tech discussing opportunities. That is still ahead. You are watching squawk box on cnbc ive been a caregiver for 20 years. No two patients are the same. Predicting the next step for them can be challenging. Today were using the ibm cloud to run new analytics tools that help us better predict and plan a patients recovery. Ultimately, its helping thousands of patients return home. You spend days researching bed sheets. And weeks picking a dog bed. So why would you settle for just any bank . Just do what you do with everything else. Ask the internet ask your friends. Ask your co workers. Were pretty sure theyll send you over to us. Because were not just a bank. Were an ally. Ally, this is pamela how can i help you . Up 51 on the dow, nasdaq up 17 premarket. Face to face, trade talks with china continuing today. Kayla is here with more on what we can expect. Today, i think, is the day they are supposed to show the cards it is the second day of talks, becky thats usually where you see the culmination will yield they are talking fentanyl an agriculture. Outside observers expect a little more than a statement they are trying to set the table for their bosses and the two leaders to meet in the coming o months they are expected to head to montana next week to meet with farmers. Sunny purd sunny son any purdue is hopeful on these talks it is hopeful on a trade resolution Hudson Institute said they go to a new percent President Trump doesnt mind that harder line because he believes it gives him more room to negotiation china has held a pilot that had air gun pellets in his bag saying they should heed deals at home thank you, kayla. I think, mr. Mcgregor, to maybe summarize and lose some of the color of what you are trying to save you are expecting the president to be able to eventually announce that hes got a great deal at the same time, president xi will announce bullying it will behalf measures. Is that what you are expecting both sides have to climb down because this has gotten ratcheted up to high if we are doing a deal that brings down a boil, china buys more goods and maybe they drop a little on the Technology Just to bring it down to then have more talks Going Forward. Right now, we are more frozen. We have to worry about protecting our system. We need to bring it down for a while to a different way of looking at things. In my view, we should have reciprocity talks. It is no longer just about a rich america, poor china we had. We are both equal, we are competing. If we cant do it in china, you cant do it here get more on an equal basis theyve made big breakthroughs that is the issue, i guess. I guess the point you are making is that china has done well. It is almost systemic. Some of these practices. The only question i have is whether President Trump, now that hes taken it this far, i dont know if he would have risked all of this i think there is a risk to him pursuing this. I think hes serious about Holding China accountable. I think he has some hawks in his ear. Im wondering if you have that right. If hes going to be willing to take a sort of weak deal and pretend that it is a strong deal he responds to things like that. If you call it a weak deal, that could push him into a much tougher bargaining position with china. That is what im talking about. Changing the discussioninto a reciprocity talk that also gets xi jinping to calm down. China doesnt know which tweet it is negotiating with we need a path forward the Business Community, the American Business community, they got 550 billion in sales they need the china market our chip companies, twothirds of their companies go to china they have to have subsidies way beyond what goes to the farmers. No matter what trump feels himself, he has to worry about the Business Community in the stock market i just dont know if its fair to say they dont know what he wants because they are one tweet away they know exactly what they had signed on to do in april and reneged on all of those. The question like what you said, are they willing to change the relationship, which is no longer rich america, poor china, help us bring over a Million People to the middle class. We had steve bannon on yesterday. Saying well be talking about this years in the future about how we handle our relationship w