Day. You can see the hang seng was down by 2 the kospi in south korea, where the closest to these concerns is located, is down by 1. 7 in europe there are also concerns playing out there the dax down by 0. 4 all the other averages down by 1 or greater. Biggest declines in spain, the market there down by 1. 4 . If you check out crude oil prices, the iea releasing a new report saying that Global Oil Demand will grow more quickly than expected this year. Thats not helping prices which are still down by 37 cents. Here are the big stories were watching shares of snap are sliding after the social Media Company reported a bigger than expected loss snap lost 16 cents a share last quarter. Revenue coming in at a lighter than expected 1 181 million the company added fewer daily active users than anticipated. Ceo evan spiegel addressed concerns on the Conference Call. We have always been last to market, competing against giant companies, weve been able to grow our business in markets that are highly competitive because were focused on innovation that explains why were willing to take this wait and see approach in markets around the world that dont make sense for our business at this point but may make sense in the future. Highly competitive meaning Facebooks Instagram stories, which has made a big splash since launching last year. Spiegel said the cofounder wont sell snap shares this year well talk to a snap analyst later on in this hour. And googles ceo cancelled a companywise town hall meeting that was organized after one of googles employees was fired the employee was let go after a controversial memo on women was released some employees worried they would be outed in the media for asking questions some of the presubmitted questions were leaked along with the employees who submitted them and one of ubers earlier investors is suing Travis Kalanick benchmark claiming fraud, breach of duty and breach of contract benchmark wants to boot kalanick from the company totally when is the last time a board member sued another board member at the company this will get interesting. Kalanick owned 10 of the company, benchmark owns 13 . And 20 of voting shares. He does not own enough without the help of camp and others to prevent things he will also lose the right to have his Board Members in addition to his own board seat, the Board Members he was able to carve out through his separation agreement. I was able to read through chunks of the lawsuit. They were saying, y they voted for him to have these things, but he made all kinds of promises and conditions, and they say he didnt let them know about things that was happening at the time, especially with waymo. The allegation almost makes it seem that kalanick was almost orchestrating the theft of some of these items i know north korea is a big story, but lets not forget about Silicon Valley big story with goggle, snap. Snaps pain is a big stock story today. Others are on the move as well nvidia Second Quarter results easily beat demand with Strong Demand for gaming chips, but that wasnt enough the data center and automotive units fell short the stock down 8 . Nordstrom reported better than expected Second Quarter results. Samestore sales rose 1. 7 analysts were expecting a decline. The company said more people shopped at its Online Stores no nordstromrack. Com. News corp. s swinging to a loss in the Fourth Quarter thanks to a writedown in uk earnings the company did beat on the earnings forecast but the revenue missed on estimates, on continued weak demand for print ads. That stock is unchanged this morning. The big overwhelming issue weighing on stocks this week are the tensions rising between the United States and north korea. President trump responding to the escalating threat. Eamon javers joins us with more on that story. Good morning good morning. President trump took questions from reporters at bedminster, new jersey yesterday where hes on a twoweek working vacation he talked about the comment earlier in the week in which he said fire and fury would rain down on north korea if they advance too far in this brinksmanship weve been seeing over the past several days the president said if anything, that comment which was criticized for being too tough may not have been tough enough he also said he will wait and see what the leader of north korea does in terms of his threat to attack guam. Heres the president yesterday lets see what he does with guam he does something in guam, it will be an event the likes of which nobody has seen before, what will happen in north korea. When you say that, what do you mean youll see. Youll see, and hell see. Reporter the president said that was not a dare but a statement of facts another issue he addressed yesterday, he declined again to kr criticize Vladimir Putin the president did not criticize putin for expelling ambassadors, in fact he thanked them. I want to thank him because were trying to cut down on payroll. As far as im concerned, im thankful he let go of a large number of people now we have a smaller payroll. Theres no real reason for them to go back i greatly appreciate they have been able to cut our payroll for the United States. Well save a lot of money. Was a wideranging conversation there the president also talked about paul manafort, his former campaign chief whose house was raided by the fbi at the end of july the president called him a good man and said the fbi raid was tough stuff but also distanced himself from manafort saying he had only known him for a short period of time wow we get a lot out of these press briefings. Thank you. Lets get to the markets, joining us is ed campbell and j. J. Kinnahan. Welcome to you ed, is this the dip where you still buy . Does this feel different this time around . We see a 4 4 spike in volatility transports below the 200day moving average weve been looking for a tullback this summer that so far has eluded us. Weve been through an environment where you typically have if you look at the long history, you have 5 or more pullbacks from a peak every two to three months. We have gone a year without one in a low volatility environment. This could be the catalyst that sparks the meaningful pullback what is meaningful . Is it 5 is it greater . Yeah. I think its 5 , possibly a bit more i do think the underpinnings of the equity bull market that we experienced over the past several years are still in place. That is the long noninflationary business cycle, corporate Profit Growth i dont think the probability of a bare market is high. But we are concerned a bit and our position keople are positiod cautiously j. J. , is it north korea that is the biggest risk to viewers money or Something Else . I think north korea in the shortterm is, brian you know, we could sell ill say one thing, this is our first 1 move in 55 trading days i dont want people to overreact. Were coming off alltime highs. I think its natural we see selling pressure when its a geopolitical risk, when you have both sides sort of talking tough, that does put things in a bit different light. We seen in the vix over a 45 move so i think theres a bit more fear that being said, you know, i think many investors may want to pair back risk because i dont think its time to run and hide. You may want to let this play out a bit more before you go in guns ablazing to buy if youve been a buyer on dips the last five years, youve been a very happy person. Would you advise people selling a bit of stock when you look at this market, we see names like nvidia down nearly 8 . The nasdaq lost more than the dow. People seem to be selling what they made money in should they continue to do that or buy some protection on the market when youre at alltime highs t makes sense to take some risk off the table. You talk about nvidia, which has had an incredible move i think its wise to take off some risk to get back into cash and look for that opportunity to buy back in. As i said, in the past its been 1 youre looking to go. On this one, this may take longer to play out so you may want to, you know, go in very slowly if youre going to buy, or take some risk off the table. Bulls and bears make money, pigs get slaughtered. If you have all the your stocks on and you havent taken anything off, you have to look at your portfolio carefully and say what are we waiting for . I thought picks got rich, hogs got slaughtered any way, we get the point. J. J. Was right to put this move in context were still about 2 off from alltime highs in the s p 500. Its something we would have seen in the past, were just not used to seeing 1 moves. The spike in volatility seems to be troubling so many funds are built on low volatility and long equities volatility goes up, they have to sell equities. Thats the way the fund is constructed. At what point do you get concerned that a spike in volatility as weve seen royals the market because of the construction of some of these funds . Thats a concern thats out there. But, you know, as i mentioned, i do think that from a longer term perspective, in terms of fundamentals, the underpinnings of this equity bull market is sti still in place if we get a 5 or more pullback, i would be a buyerment. Right now, just sitting on your hands and waiting yeah. We started the year off bullish. Our forecast for s p 500 returns this year was 8 to 10 . We exceeded that so weve been pulling back as the markets have run up. Were positioned cautiously now. If we get a meaningful pullback, we would be buyers j. J. , should we be concerned about the spike in the vix given people were short the vix and that could be a squeeze . Are we year stating that move in the vix . I think thats a good point the other thing besides people being short fix is many people were not buying as much protection as they had they said ill take the risk that i may have to pay up on a 50 risk, at the end of the day its still below 20. Once it got to 15 yesterday, you saw more buying pressure on people coming in to buy protection they were willing to take that risk thats a great point again, i think 20 still remains the warning signal because were coming from such low levels. Those who say the fix was broken, volatility, the higher we go, the lower volatility is supposed to go but its only 15. I hear what youre saying about a 40 move, but when we have this 40 move at 15, it seems like the vix is broken or market fear is not high its higher but not that high overall. I agree the other part about it, we did see a gold move for the first time, twomonth highs yesterday. People did come for gold bonds were up yesterday, not even a full point on the 30year future to your point, yes, people are buying risk, heading into a weekend you may see them buy more until we get to the 20 level and people come for bonds and gold convincingly, this has to be a cautionary tale but not a panic tale well leave it there. Thanks to you. Thank you among other headlines. Amazon is reportedly in talks with major u. S. Venues to try to offer tickets to concerts and sporting events. The move could loosen ticket masters grip in this country. Ticket master is owned by live nation amazon said some success in business where it sold tickets to shows may have been behind this. China cyberregulators investigating the countrys top social media sites for breaching laws banning content thats violent or offensive to the communist party. Tencent, baidu and weibo are the points of the probe. The government has shut Live Streaming services and sites, tightened regulations on Internet Access and issued warnings about cleaning up web content. General electrics new ceo is betting big on his own company. John flannery bought nearly 2 27 million in ge stock. Thats according to a regulatory filing he added 104,000 shares to his 401 k account bringing his total holdings to 15 15. 5 milli. As of yesterdays closing price. So a sign of confidence among the new ge ceo on a stock thats fair to say needs a sign of confidence yes this has been not only the worst dow performer the past year and few years, but by far the worst dow performer. Not even close to the other decliners. We dont know if the kitchen sink is out. The next Earnings Conference Call is where we will get that kitchen sink quarter maybe its a bet in oil ge got big into oil. 16 of ges revenue is part of the oil and gas business they got into it as oil started to slide if oil can come back up, maybe well see ge stock recover maybe bet on themselves maybe wish i had that money. To bet on yourself i bet a dollar this show will be one of the top five squawk box this week new reports say that hbo may have been working on a ransom payment to hackers over leaked show scripts, but hbo wont call it a ransom, and it could be paid in bitcoin. That fascinating story straight ahead. [vo] progress is seizing the moment. Your summer moment awaits you now that the summer of audi sales event is here. Audi will cover your first months lease payment on select models during the summer of audi sales event. Hey youve gotta see this. Cno. N. Alright, see you down there. Mmm, fine. Okay, what do we got . Okay, watch this. Do the thing we talked about. What do we say . Its going to be great. Watch. Remember what we were just saying . Go irish see that . Yes im gonna just go back to doing what i was doing. Find your awesome with the xfinity x1 voice remote. Thats appropriate for this first story in science news a team of researchers say they are one step closer to transplanting organs from pigs to humans they have successfully used gene editing techniques to remove diseases that could be transmitted from pigs to humans. Its a potential solution to a huge problem theres currently more than 100,000 people in the u. S. Awaiting Organ Transplants only 20 to 30 will receive them can you imagine if you can harvest them from pigs, how many lives could be saved they didnt say how long it would take before they could do this thats a huge discovery. If it can be scaled up in any way, even for one particular organ, think of the leaps and bounds were already using pigs bladders to heal wounds. And pig valves. Fantastic news. [ pig squealing it is nearly a month until labor day. The countdown to christmas is already on were just 136 days away from christmas. Have you shopped yet no, no, no. Toys r us is getting ready for the holiday. The retailer announcing it will return to times square, but only temporarily beginning this month. The decision comes about two years after toys r us closed that massive 110,000 square Foot Flagship store is the popup going to have the ferris wheel they also had a life sized barbie doll house. Theres no word on how long the store will stay open it was heartbreaking, if you have kids, you want to bring them into times square, that was a fun place to go. Used to be an espn zone, then i dont remember before toys r us toy stores are almost becoming like book stores where you would bring children, they had never been to a bookstore and toystores mine think they actually just come from amazon fao schwarz shut down in the city they must have had the highest rent in the city if our viewers have been there, its right next to the old apple store. A new development in the hbo hacking saga the hacker who told Television Scripts and other data from the network leaked a new email showing a Company Executive offering 250 thoishgs as a bounty payment to the cyberthief this is according to multiple reports. The email said hbo was working to obtain 250,000 in bitcoin. The executive never described the payment as ransom. They called it a bug bounty payment. Thats a term that refers to a payment for those who help you find security vulnerabilities. They have been careful to say theyre not paying ransom, but thats what this is. So Many Companies say we never pay ransom this shows they sometimes do and this is what the ransom hackers are saying, you want your stuff back so badly, you have to pay the ransom theyre trying to friend theyre not paying ransom. Thats not what it is i was joking around with a friend of mine, he said it feels like were going back to the days of the mafia. So many email hacks, high level executives are lichi inin ininig email, after sony, dont put anything into email carrier pigeon is the way to go thats how reuters got its start. Coming up, tensions with north korea are rising markets are nervous but what is the feeling on the ground in south korea . A live update from seoul is next as we head to break, here are some of yesterdays s p 500 winners andize izlosers not a lot of winners yesterday, but a few, perrigo, blaker hughes, darden were back after a couple minutes. Experience advanced Safety Technology at the lexus golden opportunity sales event before it ends. 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Futures indicating a bit of weakness the dow, s p and nasdaq futures are all not moving a whole lot the dow futures are down a bit but the implied open is higher thats where you get that fair value difference the nasdaq is the one to watch the nasdaq has been the bigger decliner its been the biggest gainer so far this year. Nasdaq futures indicated slightly lower but nowhere near the magnitude of the selloff we saw yesterday. On today