It wasnt the highlyanticipated speech from fed chairman Jerome Powell that sparkedy to intense selling. Instead, it was a new record ou tariffs imposed by the chinese ndvernment on goods President Trumps response to hike more tariffs on chinese goods. It all served to escalate the trade waretween the worlds two largest economies. That clouds the outlook f theon y and it rattles wall street once again. Here are the closing numbers for this friday. The d industrials down 623 points to 25,628. Sdaq fell by239, and the s p fell 75. Seema mody walks you through this day from the new york stoc exchange. It was another dizzying day for the stock market. Equity futures initially rose oe encouraging cs from fed officials but just befor 8 00 a. M. Eastern, china announced retaliatory tariffs firing the latest salvo in the trade wars. At 10 00 a. M. Astern stocksli ed off their lows briefly when the fed chair said that the fed would act as needed to sustain the economy. An hour later President Trump launched a series of tweets taking aim at powell and china, es wlating the trades tngt sent the market spiraling and the selloff was broad. Apple, caterpillar and 3el fedex and others lost groowd. The broke below a key technical level, not the way longter investors wanted to start the weekend. For nightly Business Report, im seema mody at the new york stock exchange. The trade war took an ugly turn. As mentioned, it started with china impo ng retaliatory tariffs on additional products and ended with the president firing back. Ylan mui has the details from washington. President trump doubled down on the trade war with china in response to retaliation from beijing. He announced o october 1st the tariffs on chinese goods will go up to 30 . Er on oct 1st the chinese products that are supposed to be taxed at will be hit with a 15 tariff. Trump tweeted that the u. S. Is better off whout china and ordered american t companieso immediately look for alternatives. It is unclear how the president could enforce the order. Firms like apple, dell and nike are consideriup movingy chains and experts say multinational cpanies will continue to do business there. China is a hugav market. You to be in china to serve that market. To tell American Companies to go out of china would be hugely crippling to the u. S. Economy relative to the rest ofhe world, which is becoming more integrated with china. Hina is slapping tariffs on 75 billion dollars of u. S. Exports like aircraft and oil. Some take effect september 1st, others december 15th. Existing tariffs are already weighing on the u. S. Econy. The reason why the economy is struggling is this trade war, and the trade war n is working. It is doing significant damage to our economy. It risks running the economy into a ditch. At thend of the day i just dont see this getting where we want to go. Automakers are also getting hit by 25 tariffs. They already got slammed last year in a previous round of tariffs. U. S. Exports of finished vehicles dropped by 50 . All of the whiplash is taking a toll. It is not just the tariffs that are in place, but it is the tremendous uncertainty over where the policy is headed and will there be closure any time soon. Businessghing on confidence and we are seeing it on investment. Business groupsay they want both countries to get back to the negot table. For nightly Business Report im ylan mui in washington. The tariffs are set to go into effect september 1st, the same set of one of President Trumps set of tariffs on chinese gooec go into e in the meantime as was mentioned, the president immediatel ordered u. S. Companies to look for other opportunities around the world for production. As eunice yoon reports, it isea er said than done. She is in chinaor us tonight. Reporter with new tariffs just days away, american businessman alfred lispena is in china looking for supplie anyway. The truth is, eunice, right now there isnt another or us. Tive reporter he helps run a Michigan Base startup that specializes in industrial lighting. The company was hit with25 tariffs in may and expects more products to be struckben sept 1st. That pushed him to explore other countries to source his goods, but none could match china. For him,ri fac like this are can make whshat he needs at an acceptable cost. Workers have years ofe experie and often the supply is here. They have helpedo shrug off the s. Tariffs. China for 25 years. Acturing in any additional cost is bad, so it doesnt pay us a lot. So s you dontit the cost . We dont. Reporter have your orders from the u. S. One down because of the tariffs . No. In fact, we see an order increase. Reporter but that means lispena and his startupave to contend with the extra cdt and uncertainty of the trade war. The tariffs are concerning not only for the impact in the cost of pricing today but also in planning going forward. Is there another tariff . Will there be more leveled . How does it impact our marketplace . The that is critical to us. Reporter for nightly business rt, im eunice yoon in china. All of that trade tk overshadowed fed chair Jerome Powells speech on monetary t policy, ade is just opothe moun central bank policymakers. Steve liesman is at the annual symposium in jackson hole, wyoming. Reporter fed reserve chairman j. Powell with his keynote speech at the annual summit here in jackson hole, guardedly suggesting that the Federal Reserve could ces interest r in the months ahead. Even though he said the u. S. Economic situation is favorable, he noted that trade policy is playing a role in a global slowdown and that manufacturing and business has weakened both. Theres only so much the Federal Reserve can do to address trade policy but could address some of the fallout fromt. In a cnbc exclusive interview, e chairmans outlook was backed up. It is favorable, the economy is in a good place but there are significant risks. The Global Economy is slowing. There are uncerinties about trade policy and those are factoring in. We run Monetary Policy for the u. S. But we have to take into account globalop devnts. They impact exports and inflation and we will factor it in as we need to. Other fed members here in jackson hole supported lowererg the it rate but for other reasons. What the market is saying inflation will be over the next five years, lets say, and adjust it because it is cpi adjusted for pc. Right. Market is only effective at 1 or 1. 1 inflation. So were supposed to hit our inflation target. Thats one reason why ive hereed we should get lower reporter it became apparent here in jackson hole that the fed chairman faces aivided committee. Not every fed official a thinkst ropriate to lower rates. My sense was we have added adom da accommodation and it wasnt required in my view. Imbserving the downviide risk and right now im focused on what theas Federal Reserve to do to achieve its mandates. In my view with the low unemployment rate, with wages rising, with the inflation rate staying close to the feds target, i think we are in a good place relative to the mandates we aresked to achieve. Reporr the fed meets in september with markets expecting a rate cut and, indeed, three rate cuts by end of the year. Fed officialshe say will be keenly wating Global Economic developments, further escalation of the trade war with china and figuring out the rest of the business economy. Im steve liesmanor nightly Business Report in wyoming. And the escalation o the trade war with china, we have chi Market Strategist with mellon. The one hand you have two new rounds of tariffs. On the oth hand a fed chair who hinted he is ready to cut ras if necessary. Good or bad for the stock market overall . Overall the stock m reacted more to the escalation of the trade fight with china and the fact that o noty is china putting tariffs on, but that the u. S. Is escala ing. The thi would say about that is that the chinese action is really interesting because it is exactly mirrori what the u. S. Is doing. September 1st and december 15th. To me that suggests a negotiating strategy. So the fear that was in the market tod should not be unexpected, but investors shouldnt bf running out the market either. So late today we did get a ratchetingp of the tariffs by the administration. Nahow do you anticipate c reacting to that monday morning or late sunday night . So things couldefitely get worse before they get better. So ou could see restrictions on u. S. Companies in china. You could see restrictions o joint ventures in china, because ultimately china is running out of goods to tariff byause t only imphet 75 billion dollars from the u. S. So there are other mechanisms where they could make life for u. S. Coanies. Should expect something. Of course, theres the currency issue a couplef weeks ago. We had weakening of the chinese currency, which didend shoulders throu markets. Now, ordinarily hearing a fed chair hint that rate cuts are coming would have sent the stock market higher, but, as you pointed tout, it wa trade tariff tiff that got wall streets attention today. Tariff war could mean lower rates from the fed down the road. Does that help the stock market or not at this point . So i think what we heard from chair powell today is that the fe is ready to go 25 basis points in september, and i lieve he left the door open for an additional 25 basis points byhe end of the year. Absent the trade w i don think we would have heard that today. So clearly the deterioration in lobal outlook is causing the fed to become more dovish and to be more open in cutting rates. Ultimately that will affect stock prices to the posite side and it will support stock prices. Where do you comeown on the issue of recession here in thet uniteds . Are we closer than you thought perhaps before or not . There are divided opinions on that. Thats right. This is a great question because the data are unclear. On the one hand, the consumer data and the labor market continue to be strong, and as we know the consur is 70 of the u. S. Economy. So as long as america keep on shopping were fine. On the other hand, some of thed forwoking data, the sentiment data, the intentions for Capital Expenditures are weakening and theyre starting to look like theyre rolling over. Right. That does mean that the place for the fed to cut and to help stabilize t economy. And then the other question is whether the manufacturing rescission worldwide comes and hits the u. S. Economy. Inde. That i an open question. Alicia levine withbny mellon investment management. Thanks for joining us. Have a good weekenu. Thank needless to say, it is an interesting time for leaders of the worlds Major Economic powers to heet, and are this weekend. Eamon javers reports on the long list of issues they will be tackling. President trump departs tonight for the g7. France will play host to World Leaders in the seaside town. This years official agenda includes promoting gender equality, climate and strengthening globalization through trade. But rheifications of the u. S. china trade war will likell dominate the conversation, particularly on the heels of the late tit for tat, though china is not a member of the g7 and xi jinping will not be present. Of seco the eu is not all we have to do is tax their cars and they give us anything they want. He has repeatedly suggested he would like to slap tariffs on european cars as he did earlier this week and french wine has been a target. Currency manipulation is among the administrations list ofll concerns as s the french digital tax that would hit u. S. Companies. Trump has meetings scheduled with macron, Angela Merkel and well as the newest uk primest mi forest johnson. That meeting will be closely watch. The expectation bar is set prets low for t one. Organizers are already saying there may not be a traditional endofsummit communicate kay as has been done in the past. Last year they couldnt get the president to agree on one and get him to signgeth it. Year theyre happy not having anyommunique at all. For nightly Business Report, im eamon javers at the white house. Still ahead, where the market f monitor isding value in the volatile market. Th new home sales dropped sharply last mrom june, but if you compare sales to last year at this time theyrely actu higher. That could be because the drop in Mortgage Rates isin startingo have an impact. Diana olick has more. Reporter homebuilders are suddenly seeing more demand this summer after a slow spring. Sales of newlybuilt hes bounced 4 higher annually in july according to the u. S. Census, which measures signed contracts during the month so recent read on demand. Junes reading was also revised sharply higher. Prices for new homes were ightly lower than last year, helping affordability, but falling mortgagekeates were a stronger driver. Mortgage rates began falling in may b did pop up slightly in july when the sales contracts were signed but rates were still far lower than in july o last year. Sales of existing homes gained injuly as well, coming higher than july of last year. The first annual increase in more than a year. That read measures clings, so people out shopping in may and june when rates were falling morehaly. While lower rates certainly boosted summer sales, there is concernhat the reason behind the lower rates that is a potentially e weakeningnomy could hurt Consumer Confidence and cause buyers to pullceack ongain come fall. For nightly Business Report, im dianack oli in washington. Foot locker slims and falls and thats where we begin tonights market focus with the athletic footwear and apparel retailer reporting earnings and estimates. Missed analyst the ceo said demand was weak for the apparel and theyre tryinto reigure out how to soften the blow of tariffs a as well. Shares dropped t4 even. An increase in online sales helped retailer buckles surplus estimates. The clothing companype has t expectations three out of the last four quarter but it didnt he the stock price today. It dropped more than 3 to 18. 0 red robin gourmet said fewer consumers dined in their restaurants last quarter but it was offseat by g demand for delivery services. The chain reported better than expected earnings and revenue as a result and reiterated itsull year outlook and shares rose 6 to 34. 90. It is time for our weekly market monitor who has names with value, and hs s they will help you navigate the stock market volume title. Theast tim he was on in july 2018 he liked nova cure, which is up 149 . Americr, to up 60 . Yelp, which is 20 lower. Joining us tonight is richard steinberg, steve Market Strategist at the colony group. Richard, great toyo see good to see you, sue. What a day to have you on. A lot ofvolatility, and thats probablyot going away. Your first pick is yes, we should expt more. I think so. Lowes is your first pick. Why do you like it . This is owned in our growth portfolio, one of our largest names. E it is cond largest home imprement Company Behind home depot which is stillhe class act of the group. But marvel ellison came on from home depot as the new ceo. When he first came on there were high hopes, the stock sell off we have a 140 target for it and i think it is a name for a longterm growth portfolio. I am betting the next company is also in your growth li port it is called ni. I was looking at a chart today. In the last five years itas essentially tripled in valuepl here. Do you still like it though . Yes, this is an israelibased Technology Company in our analyst select portfolio and in our growth portfolio. Ictually ownhis one personally also. The company does cl Center Software as well as Financial Crime and compliance software. They recently made an acquisition called in contact which is in the cloud space within ten callr space. The ceo is a visionary. This is a class case of amazing israeli technology. Willing to you are hold this for a long period of time, it is a great longterm. Na we have 189 target on it. All right. And you are sticking with one of your previous picks, and that is doubling down. Youre doubling down. Were doubling down. Why . Thi i in our special situations value portfolio. The company is really cuttingedge, technolo health Technology Company in the cancer space. Think of odyssey 2000 with a it has had Great Results in both glioblastoma and mesothelioma. I always have trouble with those. Thre showing some great nonsmall cell cancer. Mall i think this is a name that could continue to be owned. Okay. Whave 122arget. If the cancer clinicals go well, than thate higher rich steinberg with the colony group. Thank you so much. Good toee you. He tonight by the way the Business World is mourning the loss of david koch. Of course, he was best known for his politicut activism he ran one of the nations largest privatelyheld conglomerates, kochst ines. Its investments includes subsidiaries in manufacturing, chemicals, fibers and mheerals. And his brother charles financed one ofhe t most influential Political Networks in america. David koch was 75 years old. It is a question asked a lot lately, is a recession coming. Ot af rumblings among economists, market watchers,or inve and consumers. Some Financial Experts say a cline in Economic Activity and widespread drop in spending is inevitable. But there are those that. Disagr what does it mean for you . Our financial corresponnt Sharon Epperson has suggestions on how to recession proof your life. Welcome aboard. Thank you. Here is that question again. What do you do first . What do you say . First thing is noto panic, to breathe, and focus on what you control. The first step there is to look at what you have coming in, what money do you have coming in, what is yournce. Therefore, focus on your job and protecting yr job and the stability of youroob. To th