On cnbc. Im sara eisen im dominic chu in for wilfred frost this morning sara, i never heard this song before. Thats because its new music friday this is not new either i dont know escalating tensions between the u. S. And north korea remaining front and center for Global Markets a big selloff on wall street yesterday. It was the worst day for a lot of stocks since back in may. Dow futures are pointing higher, perhaps some stability in todays session. This comes after three backtoback losses for the major averages in what is a pullback officially. Dow futures flat s p down 3. 5 nasdaq fought chorutures down 2. The tech sector has been a big winner this year thats receiving some of the biggest moves down it maybe makes sense that the stocks that have had the bigger runs higher are selling off the most during the course of the last three days. We made such a big deal that we saw ten straight sessions up for the dow, then its three in a row. Today could be four. As you pointed out, stability now. In asia, saw those losses from wall street spilling over into the continent japan was closed for a holiday hong kong down 2 . Shanghai down 1. 5. Bigger declines. South korea kospi we watch closely, down 1. 7 after a resilient and stable all year long this week like the rest of global stocks, it has started to cave lower the cbo index, the vix, the volatility index, hitting the highest level since november we watched the levels there, back up to 17. It wasnt long ago we were below 10 indicating the nofear market so things have changed this week lets get the latest on the growing tensions between the u. S. And north korea chery kang is live in seoul, south korea. Eunice yoon is live in beijing, but lets start with tracie potts with the latest from President Trump. Shes in washington. Reporter good morning. So the president says maybe his tough talk against pyongyang wasnt tough enough. President trump saying this is not a dare, but a statement. Really doubling down on some of his heated comments against north korea and the possibility that they might now shoot missiles very close to the u. S. Territory of guam. Hes more of what the president said warning north korea to back off. 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 did clarify he wants to denuke the world, hes not looking for a Nuclear Conflict here. Frankly the b 1 bombers off guam that the u. S. Would send possibly to north korea do not have that capablibiliabilitcapae missiles that north korea looks to send to guam. Those missiles could hit within 14 minutes the military, general mattis, saying he hopes diplomacy works. Tracie potts, thank you very much for joining us. Lets get the latest on the ground from the Korean Peninsula. Thats chery kang live in seoul. Good morning reporter good morning, dom we did not get much reaction out of south koreas top office, at least today. Its been relatively muted in terms of reaction to all this. But the top military official in the country did call for a full readiness for any potential north korean provocation, and also the president ial office did say this morning that the National Security adviser of south korea had a 40minute phone call with his u. S. Counterpart, mcmaster, talking about how the countrys reaffirmed their promise, to cooperate, highlighting their alliance here. Im not so sure what that can do when pyongyangs prime audience seems to be the United States. The whole north korean tension clearly shows this dynamic is becoming highly bilateral for the most part bypassing south korean government. I do note that south korea along with guam is the target in this planned preemptive strike in this latest threat by north korea. Guys whats the economic stake here for south korea we know its a big trading partner with the United States i mentioned the kospi did get hit this week along with global stocks im wondering what economists and strategists are expecting as far as the Economic Impact of all of this on the economy there. I would say the latest round of north Korea Tensions certainly especially in the wake of the new president s term that started back in may this year, a lot of companies have been hurt because of geopolitical issues you mentioned the u. S. , yes. But also china as well and i think the thinking here, when it comes to the korean equities market at least, i think the thinking leer, whats spooking investors here is the layer or the new layer of uncertainty for a lot of south korean investors because we are dealing with a different leader in the United States certainly unprecedented, a different style of an american leader that theyre dealing with here so, when markets hate uncertainties, they are really not familiar with this kind of American Leadership when dealing with north korea that can explain the Market Reaction sara okay. Chery kang, thank you very much. How is the latest war of words playing out with incomes most important ally, china and the u. S. s most important trading partner. Eunice yoon is live in beijing for us what have we heard from the chinese authorities at this point . So far theres not an official statement but the Chinese State media fired a warning shot against pyongyang and washington over this ongoing war of words. There was an editorial in the global times which reads if north korea launches missiles that threaten u. S. Soil first and the u. S. Retaliates, china will stay neutral. If the u. S. And south korea carry out strikes and try to overthrow the north korean regime and change the political pattern of the Korean Peninsula, china will prevent them from doing so whats interesting is this is a significant change from the messaging that weve been hearing out of the Chinese Government as well as the Chinese State media. Up until now the messaging has mainly been to encourage both sides to have dialogue, and also to try to get both washington and pyongyang to tone down the rhetoric but this commentary again, its not an official statement, seems to be more focused and suggesting that if kim jongun does do something rash, that hes on his own. And that the chinese will not step in as they did in the 1950s during that korean war also at the same time theyre warning donald trump that if the u. S. Were to go in and preemptively strike, that the u. S. Is not only going to be fighting with north korea, but also with china. That seems to be what this is suggesting eunice, as we talk about the developments here, we know that theres been at least a little bit of military movement from the south moving towards the border up there. Is there a sense that theres concern coming out of the government in china about some of these sabre rattling and how far it has gotten to the point where we are right now is there a sense that thats going to rattle markets over there . Absolutely. In terms of markets, there maent been hasnt been as much of an impact, but the way its rattling beijings leadership and officials here, its doing that this latest editorial is another version of how nervous beijing has been up until now theyve been looking to defuse the tensions. And this editorial says beijing is looking for ways to hit home that had escalation of war of words is quite dangerous eunice yoon, thank you very much for bringing us the latest from beijing lets check on what that means and how those implications are playing out in european trading. Were seeing weakness there across the board the dax off by a half percent. Off of the worst levels of the day. The cac in france off by 10. 3 we are seeing some ripple effects. More muted than we thought they would be still the european session shows theres more of that risk aversion playing out we saw a 2 decline for the nasdaq yesterday, 1. 5 for the s p. Reaction overseas to that. As for the Broader Market picture, the tenyear treasury note yield is lower. Still some buying of the safe haven treasury the japanese yen has been the Central Point of the safe haven buying the tenyear moves lower, below 2. 20 well see how that cpi report comes out. The iea releasing a new report saying Global Oil Demand will grow nor quickly than expected oil prices under pressure to the tune of 0. 75 , 48. 23 is the wti. Buying of yen has been the trade du jour. Youre seeing it again with the dollar against the yen, higher by 0. 25 as nor the euro dollar, this has been a mixed bag, but mostly Dollar Strength. A more fractional move than the yen buying the pound we put first for a change, 1. 2965 and we keep watching the korean won, down around the risks of the Korean Peninsula the won has been hit this week i would say given the kospis decline, which is pretty much on par with the rest of Global Markets and the korean wons slight decline, its mostly a tale of resilience and the pricing in of a diplomatic resolution to this conflict. You pointed out the dollar yen trade that was much worse earlier on in the session we have seen those yens gains abate a bit here, just to give you an idea of the handicapping thats going on now. So dollar yen at 108. 97. We are seeing dollar weakness and yen strength but not nearly as pronounced as it was. Yesterday was a much bigger move as for gold prices quickly weve been monitoring this one some guying of gold. And it is higher again by a third of a percent there is the trade, 1,293. We will get the latest snapshot on inflation. The july Consumer Price index is out at 8 30 a. M. Eastern time. Both headline and core cpi are forecast to rise 0. 2 . Were going to hear from a pair of fed officials we have dallas fed president , rob kaplan and minneapolis fed president kneel cash kneel kashg comments and on the earnings front, look for news from Jcpenney Department store results have not been well received. Shares of snap are sliding again after the social Media Company reported a bigger than expected loss. Snap lost 16 cents a share last quarter. Revenues also came in light, 1 181 million the company added fewer users than anticipated the results raising concerns about competition which snaps Ceo Evan Spiegel did address on the Earnings Call. We have always been last to market, competing against giant companies, weve been able to grow our mbusiness 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. Joining us is kathleen smith, principal and cofounder of Renaissance Capital cramer tweeted im thinking the eagles Second Period play is about as good as the Conference Call last night. The eagles did not do well last night yes when the ceo talked about focus on innovation, i think for wall street were focused on growth and finding out how this company is going to earn money i think that the priorities, we have to get in line the company has to get in line with what the Public Markets are looking for. Kathleen, how much can we say about the ipo market in total because of whats happening with snap is it a bellwether of sentiment and blu and blue apron. Yes, and blue apron a certain extent snap and blue apron that sets tremors into the market when investors are any new company that looks like these companies, startup companies, they will face much more scrutiny than ever before. Investors are not in business to lose money here. Thats whats happened with these companies in spades. The overall ipo market is operating fairly well. As we know the overall back drop for the market the past week has been very poor but still year to date the average ipo thats been done is up 8 . So still constructive things happening. Ill point to red fin, the discount real estate broker, theyre up from last week. So some very good ipos are happening. As far as results and what was interpreted negatively, in blue apron and snap, they were different metrics and different indications of Slower Growth both companies are still growing revenues, i think at double digit clips, but theres other problems with snap, its user growth. With blue apron costs are rising, becoming more expensive to acquire customers whats the lesson for companies preparing to go public in terms of getting financials in order and figuring out the timing of when to pull the trigger clearly if a company is going public, they have to be ready to meet Investor Expectations these two companies on many levels, including operating level, which is really important. Its not just about growth thats certainly what the market is looking for ultimately Growth Without showing increases losses thats the issue here. So investors have expected higher growth. These companies have not met Investor Expectations. Thats a big nono for an ipo. In addition i think Companies Like these come to market thinking possibly they could be worth what theyve been valued at privately i think that that is not theres not a connection in fact a very big disconnect between private valuation and what the public thinks companies are worth. I would say lastly that, you know, public investors deserve a certain amount of respect in terms of voting shares the lockups. These companies in particular and snap came out with nonvoting shares. Blue apron has limited voting shares, basically controls the companies. Shareholders certainly deserve some seat at the table got you kathleen smith, thank you very much for joining us. Snap one of the stories well be watching in trading today. One of ubers earliest investors is suing the cofounder and exceo, Travis Kalanick claiming fraud, breach of duty and breach of contract ben mark wa benchmark wants to boot kalanick from the company totally when is the last time a board member sued another board member at the company a controversy that cost the ceo their job, potentially other executives their job this is ugly. Certainly a drama. Googles ceo canceled a companywide town hall meeting that was organized after one of the google employees was fired the engineer let go after writing that controversial memo on women and technology and diversity issues at google in an email he said some employees were worried they would be outed for asking questions after he revealed some preselected questions were leaked naming google executives. Is amazon one step closer to global domination . Details of the newest business idea next. Stay tuned Worldwide Exchange will be right back thanks for loading, sweetie. Oh, burnton gravy . Gotta rinse that. Nope. No way. Nada. Really . Dish issues . Throw it all in. New cascade platinum powers through. Even burnton gravy. Nice. Cascade. Stocks to watch in todays session. Nvidias Second Quarter results beating estimates thanks to Strong Demand for gaming chips, but revenue from the data center and automobile businesses did fall short. 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 news corp. s siwinging to a loss in the Fourth Quarter thanks to a writedown in uk earnings revenue missed on estimates, on continued weak demand for print ads. More stocks to watch, pet probass says revenue fell 6 on lower domestic fuel sales. Demand remains subdued amid the countrys recession. Amazon in talks with major u. S. Venues 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. And boeing naming Caroline Kennedy to its board of directors. Chinas cyberregulators investigating the 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. Still ahead on the show, the public spat between President Trump and Mitch Mcconnell heats up and we may he w taavnedeils on a tax timeline thats straight ahead. I dont miss much. Definitely not the traffic. Excuse me, doctor. The genomic data came in. Thank you. You can do that kind of analysis . Yeah, watson. I can quickly analyze millions of clinical and scientific reports to help you tailor Treatment Options for the patients genomic profile. 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