Im Melissa Francis this is after the bell. There we go. S p 500 ending in negative territory. Both down 3 on the day. Fox Business Team coverage. Gerri willis is on the floor of the new york stock exchange. Edward lawrence where a lot of action was in jackson hole, wyoming where fed chief Jerome Powell was speaking earlier. Phil flynn watching action in oil and gold from the the cme. Hillary vaughn is at the white house. Well start with you. Reporter white house trade advisor Peter Navarro was on fox business this morning. He said that china continues to pay the price in this trade fight but he also said later on fox news that we have more bullets in our gun than they do. He says china exports over 600 billion to the u. S. We export about 100 billion. So he thinks that the u. S. Still is on top even though china has taken new action against u. S. Products going into their country. The president though on twitter promising to respond to this sometime this afternoon. We havent heard any update on what that response will be. Whether it is another round of tariffs towards chinese products or what type of reaction it will be. The president in the meantime though is ordering u. S. Companies to take action, signaling that the u. S. Does not need china, saying quote, we do not need china. Frankly would be far better off without them. The u. S. Chamber of commerce chiming into the tweets, they share the president s frustration but encourage him to continue constructive talks between the two countries. Trump demanding that u. S. Companies move out of china, relocate manufacturing here in the saying our Great American companies are hereby ordered to immediately start looking for an alternative to china. But the National Retail federation is saying that a u. S. Exodus from china would be not only unrealistic, but costly, it could take years to move supply chains out of the country. The president also calling for carriers like fedex, ups, the u. S. Postal service to screen their shipments for illegal fentanyl being funneled from china here into the u. S. Fedex and ups responding to this saying they follow all protocols and security measures to make sure i will is lit products do not make their way into their shipments. The president does not seem bothered by the ma market move or reaction to his comments, making a joke on twitter is because the drop on the dow is because seth mole ton dropped out of the 2020 race for president. Melissa demanding they look at alternatives . What company hasnt already looked for alternatives given everything that has gone on . Hillary, thank you. Tech stocks sinking on escalating feud between the u. S. And china. Go to gerri willis for more. Gerri, wow, i cant even imagine, what was it like on the floor . Reporter it was amazing, so many different sectors hit today, right . One of the once people did not spend a lot of time talking about, tech stocks. They were down. Big tech titans down and down hard. Facebook, amazon, apple, google, netflix all doing poorly today. All about trade tensions here. As you can see these stocks down and down hard. Apple among the worst of the performers today. As you can see for the week here apple down 1. 8 . It has a lot to do with the fact that it is supply chain is heavily invested in china. Very difficult to move. Dan niles from wedbush saying there was a shot across the bow what the president had to say about companies trying, they need to get out of china dan niles saying guess what . It would take five years for the company to get 50 of the production out of the country. Tech taking it very, very hard indeed. Now all three major indexes, guess what . Negative for the week. Thats right. The dow, the s p and the nasdaq suffering mightily this week. Even after beginning of the week we had great retail news. So it has been up, it has been down. But today a very tough days as we close out on a dow down 2. 37 . Very difficult indeed. Look at that nasdaq composite for the week, down 1. 83. Back to you. Melissa tough day, gerri thank you. Connell lets bring in our panel. Deirdre bolton with us, dan shaffer, carol roth, future file legacy Planning System creator. Everybody, deirdre, who run companies are trying to figure out i think how to interpret what the president tweeted about today. Melissa said Many Companies started to move their supply chains but for the big ones like apple, if youre tim cook at apple do you take it literally . Or do you take it well, this means well not make a deal with china anytime soon . I think uncertainty is part of what pushed the markets lower. If your business head, even if you considered other options we know you cant just flick a switch move your operation from china or vietnam or another player in that region. It takes, fastest estimate ive seen anywhere is 18 months. Most people say up to five years. So even if these companies have been thinking about it, they may not have put steps in place yet. Long story short, no matter how long it takes, its a big burden on these companies to now go through with the plans, be a little more serious finding alternatives. Essentially also we just saw President Trump eventually steel the mic from the fed chair, right . Connell yeah. I have to assume at some level President Trump was not really liking what he heard from fed chair jay powell. He said you know what . Im going to ratchet all of this trade talk up a little bit more. Put a little bit more emphasis clearly what is at stake for our markets, our business owners. Also just want to mention, pick on something gerri alluded to, were clearly down this week, this month, ive gone through and counted, we have seen on nasdaq particular, more than six times, just august alone, falling by 1 or more. S p 500 and dow a little bit more, four and five times respectively. A lot of volatility. A lot is based on trade. Connell that is the kind thing, dan, you watch. Coming back from headlines, what they may be on a certain day. Looking in action on financial markets. What did you pick up today . It is interesting. It occurred on a friday. If youre watching markets this morning at 8 00, futures were up pretty strong until remarks started to come out of china. The timing between china and powell talking is very interesting. I think there is tremendous damage that was done in the markets. As you know, i am bearish between the divergence of corporate earnings, where the stock market has been. It has been totally inflated. Central banks have dislocated prices all over the world. Nobody knows what the proper price levels are but when you get a day like today, you get the rattling going on, i say this all the time, ive been saying it for three years, china will not do a deal. Its a communist country. They have their own rules, their own regulations. Theyre not going to let trump get away with this. Trump has a big road in front of him. They will wait him out. Connell some interpreted the president s tweets that he didnt want to do a deal. Decoupling talk. What did you take away from what you saw today . This is complete chaos by tweet. Demand for investments not being held back by Interest Rates it is being held back by chain. Whether you have a supply chain, selling into there, worried about a effect on the global economy. This is a much bigger issue. The fact we have china retaliating. The fact that trump is using language that xi is our enemy, that will not go well in china, this is not moving in the right direction and this is adding problems to the economy. Melissa Jerome Powell talking about as as President Trump takes aim at the fed chair. Edward lawrence live from jackson hole with the latest there. What was it like when the tweets started to hit the fan . Reporter things got a little more serious here in jackson hole. They have a level of independence separating from the president , they are responsible or acted upon by congress. They have their mandate from congress. Federal reserve chairman Jerome Powell said today that the Federal Reserve will act as appropriate to sustain the expansion. Now he did not lay out the case for long term deep cuts. That set off President Donald Trump on twitter. The president saying on twitter, that they have a strong dollar and a weak fed. Then asking who is a bigger enemy, jay powell or chairman xi . The president wanting rate cuts to take on china a trade dispute. Powell says in the speech there is no precedent to integrate trade uncertainty into Monetary Policy. He is saying there is no clear path forward to incorporate cuts in the middle of so many trade disputes. Powell adds that the fed is watching closely specific global events, what is happening in hong kong, germany, chinese economic slowdown and brexit. Fed experts say this is a difficult time to manuever Monetary Policy but the fed must stay focused on the future. Its a tough job right now and thats why all much more important that the Central Banks and central bank of the United States have that ability to make longterm judgments, deliberative process, rather than this political winds keep pushing on it to go whichever way the wind is blowing that day. Its a most difficult time. Reporter and the Federal Reserve chairman seeing wages rising. He also sees Consumer Spending is very strong and driving our economy. He is watching weakness though in manufacturing and business investment. So Going Forward the Federal Reserve now is in the middle of this trade dispute it seems and the president has put them there. Back to you. Melissa no doubt. President trump posing the question who is our biggest enemy, jay powell or chairman xi . The panel is back. Carol, there is a bunch of different ways to look at this. I will give you first one, is he setting up a fall guy in case the economy turns south . Weve seen a few signs. Businesses cutting on spending. You see what is going on overseas, whether germany or china itself where things are slowing down, things are still good here but is he setting up a fall guy . I will take it one step further, melissa. It could be he is trying to take the sentiments from the public against the fed and maybe this is an art of war or art of the deal to make a play to get rid of the fed which would make many of us happy. Otherwise he is very focused on shortterm market returns, having a great market going into the next election. So i dont know, i feel like it could be one or the other. Im not sure which it is but not giving me a lot of comfort in the mean time. Melissa no. Dan, one of the other theories out there, this idea he wants powell to buy him time, lowering rates, keeping economy going, doing anything he can to keep the economy going until closer to the election. At which point he could at anytime take, you know, take this trade off with china. Oh, we won, we made a deal. Its over. Call it a victory no matter what the deal looks like. You watch the market and economy expand. He wants that to happen as close as to the election as possible. So beating the fed is part of buying more time before he declares victory. What do you think of that theory . That is an interesting theory. It is almost like make it worse before he makes it better into the election. That could happen. It could happen. I dont think the Federal Reserve will have a choice. They will have to lower rates. Theyre behind the eightball according to the twoyear treasury. Trump, im not a big believer in the Federal Reserve having control of Interest Rates. I think they should float the way the market is. But global pressure will put it on the fed. Donald trump doesnt have to say anything and fed will have to lower rates. No question about it. The problem will he use the fed to make the dark clouds come now in this period of time, maybe next three to six months and like you said, coming into the election time, lift that weight off the markets by pulling back on the tariffs, pulling back on the fed . Look anything is possible now. Weve seen things that weve never seen before. We have never seen Interest Rates this low. We have never seen the yield curve like this. In 10 years we have not seen producer Manufacturing Index so low. Im telling you, the world is in a major, Major Economic slowdown and powell has been behind the eight ball. Trump knows that. He is a businessman. Whether that is going to help the economy with the lowest rates, that is the big if question that i have. Melissa, so, deirdre, building on that, there is this idea, you heard it from larry kudlow and others who come out that the fed should not be setting rates. They should be responding to what theyre seeing in the bond market. When you see the yield curve invert, that they are doing the wrong thing and he is behind the eight ball . We did not stay there very long, where the yield curve on the shorter end was inverted, i thought, President Trump in his comments did essentially increase the chances of either a larger rate cut or more rates cuts. Melissa right. I feel like in his own way the president is doing, pushing limits. I wasnt kidding, even for our industry, he grabbed the mic from jay powell. This was supposed to be the fed chairmans day. Were talking about it now, but the majority of the day we spent talking about the markets, china, trade and the president s strategy. I think that is exactly as intended. I think he meant to have the fed look slightly irrelevant. And he has. Melissa there you go. Connell . Connell look to oil, down for the Third Straight day. Oil fell by more than 2 in the floor session. Phil flynn joins us from chicago. Take us through the day. It is interesting. It started with tariffs from china, right . It really did. All of a sudden oil prices were trying to recover. We got the report of the 5 tariff on u. S. Oil exports and oil prices really got beat up. The traders are trying to bring the oil market back up. They started to realize u. S. Exports are not even at 3 Million Barrels a day. Because the u. S. Market is so much cheaper than the rest of the world, maybe the u. S. Exports wouldnt get hurt too bad by this. Jerome powell gave it a little more after boost. He seemed to be more dovish. He seemed to suggest he was ready to act if need be to step in front of the economy. Then came the tweets. My goodness, all bets are off. All of sudden Donald Trumps reaction sent Oil Prices Back down again. On the other hand, connell, look what it did to gold today. Incredible day. Safe haven buying like crazy in gold closed at highest level since 2013. It was the a real rush into the metal. Gold is up this month, 7 . If you want to buy gold for christmas, this is the time to do it. Put those things over the weekend, it will be very hairy. Gold if you see more headlines that could explode this week. That looks like the safe haven play. Oil on the other hand may be bad because they will worry about demand. Connell it will be interesting weekend. Well talk about g7 coming up as well. Phil, thank you. Melissa i like idea of gold for christmas. I like idea of gold for christmas. Taking on china, Federal Reserve, President Trump upping pressure on Jerome Powell amid escalation of trade fight with china. Here is steve forbes. Forbes media chairman. Ive been dying to hear your thoughts on this whole thing, what do you think . Wars are not easy to win, traditional wars, combat wars, or trade wars. They take paths you never anticipated. Everyone pays a price for it and whats happening today, people realize this will be overhanging for a while. Maybe the president can end it with a 2003 this afternoon. We hope so. Until these uncertainties are resolved you will have increasingly her economy as investment slows up. This stock market is giving us a warning, get this thing resolved. There are better ways to deal with chinese abuses, going after specific companies, specific industries, specific banks, bringing those entities to their knees, not hurting the u. S. Economy. China is hurt more but were hurt too. Lets get a deal and move forward. Melissa that is interesting. You are saying at that the market say get this thing resolved. Does it matter what the what the solution looks like short term . Or the economy and markets expand no matter, the president says it is over, we won . Lets put all this behind us . There are ways to deal with specific abuses. I think that is going to happen regardless what happens in these negotiations. The market would certainly be happy if they promised to buy more, china bought more of our agricultural goods, did a natural gas deal which would be a natural for hundreds of billions of dollars over the next 10 years, markets would love it but the key thing is removing barriers, not putting in barriers. The other thing that will be weighing on the markets, are we putting auto tariffs on autos and imports from europe . That would devastate europe and put that in recession . Were not isolated in this world. Were doing better than the world, if the world hurts well eventually be hurt. Melissa steve, this is my question, so normally we sat here before in other election cycles, we looked at, oh, my goodness, the economy will makeorbreak this incumbent president. We need the economy to go up, not down, cant go into recession. This is the first time i can remember where the president actually has the power to turn the whole thing around almost overnight. That is my point. That makes me cynical where we are right now. He really could turn things around by saying its over. We havent seen that before with somebody who is running for reelection. He put in some good policies. Real deregulation, fantastic things going on there moving agencies outside of washington to the real country. Tax cut and the