final check on the markets which are being positive for most of the session but marginally the s&p up a little over 20 on the dow. nasdaq up 8. michelle will be here tomorrow. >> make sure you join us to recall squawk on the street begins right

dow on track for the worst month since january. icahn the latest the step down as an adviser to the president and now looks like there maybe communications with all of that and another shot fired in adp's ackman battle. we'll break down what that means. four week losing streak for the nasdaq and given sort of these levels here. not surprising that the dow is on track for the first month since january. >> i have been watching and reading and there's people that feel that a 2% correction was warranted. that's not a correction. i mean, we had a meandering. things have been good. there's things like foot locker that are devastating things like estee lauder it's just hanging in there oil tried to put a bottom in on

friday news camp was good for oil but that was the most noteworthy thing that i saw obviously the bannon news was okay cohen in and banno out. >> the failed so-called bannon rally bother you. >> not at all. we're at a moment where there's more people taking vacation than usual. these things i know they're supposed to be slow but, you know, it doesn't mean you have to close we ought to go back and say okay listen 2:00 we are going to knock it off. >> when you couple the geopolitics, what's going on in washington, the seasonality, august-september some argued the standing right now is maybe the most tenuous it's been for the year. >> august is bad it's always been bad we have been together where it takes your breath away, august

also the first four weeks of september are just skittish times and what i sympathy amazing is there haven't been that many earnings disappointments so typically we had them we went through retail and the ones that have been hammered are, let's just say deserve it i heard a lot of discussion about home depot home depot is a test for me. they reported a great quarter and that's been unusual. most of the commentary for most of the companies that had great quarters was saying the stocks are up one of the themes in the last few earnings quarters and there's see ttoo many retailers it's all going to tail wind. that matters tremendously. i think for some of the largest tech companies so i don't know i don't want to say i'm senquin. i left here on thursday night saying wow i can get hit and then i saw bannon is out

>> we'll be talking a fair amount of politics today the president is due to deliver his primetime address to the nation tonight. the president will speak to the country from arlington, virginia comes after a turbulent week for the white house including the disbanding of the two business panels following the remarks on charlottesville and resignation of steve bannon. trump and the ceos a soured partnership. big full page piece. how tenuous it's been for months some of these councils were talking about disbanding back in june they were upset about the paris accord and the transgender military issue charlottesville was just the final straw. >> i think that's true but these people are such universal stake holders that don't want to revisit a lot of these issues. i think chuck robins was

emotio emblematic i think they thought they could be integral in the move for lower taxes but that got bogged down by repeal and replace there wasn't anything for them to do. but there was a momentum and i think that those policy groups might have been very valuable or if they're talked about infrastructure but there's nothing to talk about. >> not too late though. >> here's what i sympathy going to happen. hate them or like them the guy. >> i'm not being glib. i think he's going to take it on a smaller scale. i think he's going to take it say golfing. getting ceos together that he likes the things that obama used to i think he's going to get rid of the big show

i think he still wants the input. i don't think there's executives that are going to say no to a golf game. i'm not being fetitious and i think what i'm seeing is going to be small scale. when you go back over by the way frazier started i think the president brought together a lot of groups that don't bring democrats together and you thought it was the spirit of bipartisanship in this case looking at regulatory reform

i thought that maybe it would surprise me. he plays with an open hand he has an interest in it and people have an interest in drilling and they meet with department of epa. >> to your point he doesn't need a special title. designated special adviser >> it's all going to be too from here it's not going to be these giant

gatherings because people are too angry at this president. the charitable and then again it's like okay we're not going to identify with this guy. and then people forget i think if he takes, he goes back to exhibition but then it come backs to what happens in c congress september 29th, deadline, debt ceiling, that's the most important thing and for september we're going to be in these situations where we're going to come in and you're going to ask me does it have a chance to pass and i'm going to say i don't know that's how dysfunctional it is. >> goldman put a 50% number on

friday so it's regarded as positive for the stock market i think it's negative for the woerk but that's not been a factor in this administration. >> rekbarding the debt limit. >> that's what is going to be the focus. that's too few days. plus september 11th is the day after the redskins lose to the

eagles. >> home opener. >> there's nine days because boy that's going to be a set back. >> the sports business daily says goodell is close to renewing his contract for five years. >> i think they changed so positively i don't know look, i happen to think they addressed a lot of issue including a suspension of the number one running back for 8 weeks of the season. there's no more -- they have a zero tolerance which is what he needed. >> when we come back this morning, warren buffet getting out bid for that player in the power industry we'll take a look at the premarket here stocks coming off their first two week loss since may and the s&p right around levels that was at the end of june we're back in a minute this is not a cloud. this is a tomato tracked from farm to table on a blockchain, helping keep shoppers safe. this is a financial transaction secure from hacks and threats others can't see. this is a skyscraper whose elevators use iot data

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once again i just want to mention. i want to distinguish elliott barton from doing a level of homework about what this thing is worth and keeping it alive and buying back a lot of debt. they are when you hear them involved with something it is about rigor. they have a fabulous team. i have at times disagreed with them and listen to their view and say this is the most considered view. when i met with and talked about this it was clearly worth more than buffet was willing to pay for because they kept it alive and it's great it's great because it's a really, really good property and buffet doesn't come back he doesn't bid again. >> what does it say though that he was not willing to budge on this one >> he just makes up his price. if he gets in good and if he doesn't, he's not going to hurt his business but for somebody like sempra that needed growth,

this is great. i love the property. encore is a really, really good property and they can refinance. it's a very good deal for them they shouldn't be doing an equity offer. >> there is some other news, total got this hlf stuff today. >> so significant because we keep waiting to see some m&a now that the prices are so low and you keep hearing these oil executives come on and say it's cheap tore drill on wall stree than it is -- no, people have been shunning anything oil this property, i mean, total was downgraded by barclay's today and what it tells me is that there's hope if you own some of these stocks maybe there will be a wave that's why i say the friday bid underneath wasn't just because some libyan wells were taken off. i did not expect anything good in oil was a little bit of a

surprise to those that put out the routine shorts. >> has it changed your view. >> i still don't like oil. i really, partnerships still struggling from the egiant enery transfer and is now beneath where the deal was priced. i'm not looking for anything big from oil here. not at all it's very interesting. here is a deal where they basically are sticking it to ackman and you have these rights that come with so you're still kind of in the game. this is a dutch tender so we need david, where's david faber when we have a dutch tender but it's going to squeeze the short which is is kind of what the game plan is and carl icahn is keeping his stock. if you own herbalife well done. >> an 8% gain.

>> it tried to go private. it was a weird release you don't have to tell us all of that but thank you for full disclosure on that. >> some noted the tone there speaking of ackman adp will not nominate three candidates for its board. none of the candidates bring any additional skills or experience to the board they have a significant stake in adp and called for its ceo to be replaced carlos rodriguez will be the guest tonight at 6:00 p.m. eastern time and he already called him the spoiled brat. >> i got the presentation this weekend and went over it page by page there's a lot of smart stuff about adp in there a lot of points about margins and the idea that they could have extended their franchise. a lot of points about technology more than 80 executives they

interviewed. there's real issues and i think one of the reasons why the stock dropped is its like wow, maybe they're not as good as we thought. >> despite what that chart shows, despite the white glove treatment that you talked about. >> right, the total shareholder return has been fabulous but what ackman says is it could have been even better. now the reason why i don't think ackman has a chance is because it has been really good and those of us that use it are, it worked but their idea of going against the mar jins thgins ver paychecks, the growth they have which is on very often, it's inferior it is inferior so it may be

there. >> you have to go to cloud so adp, some people would just it fat and happy so let's find out. >> you think peltz should go on p&g board and adp should listen to pershing. >> p&g has done really well. i like the pressure that peltz has put on but i want to see the presentation when i look at what proctor has done that's been lacking if peltz has a lot of innovation it does matter when i talk to the proctor side what i come up with is its not as bad as i thought. adp was i have to admit the

presentation has gravitas is what i was saying and the other side has to be heard from. >> sounds like a good one tonight. >> i was hoping it was all hot air. i don't mean that. i read it. i told my wife, let's call our managers it's a really good website. >> yeah. >> but it was cojent >> we'll get cramers mad dash as we countdown to the opening bell a lot heading our way over the next five sessions more squawk on the street is straight ahead

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this is the first we heard of the jordan franchise has run it's course. the steph curry franchise is not

existant on the call it's like a fad now. they're closing stores >> the read group for underarmor is terrible. you contrast that with estee lauder they were thinking about where things were going to be and china has been a big resurgence but a lot of what happened and i'm comparing the two because he saw a lot of things coming online these guys were just blind sided. i don't think they saw and the speed, they talk about the speed with which the consumer changed. it was -- they did not see anything comeing hence why this can have such a big decline and the mall,

there's almost no, they have no omni channel. >> we'll talk about the downadgred nike. >> people aren't spending on sneakers anymore. >> opening bell in just a minute

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another person was on this morning on squawk. the euro has peaked. the euro peaked. i don't get that at all. the euro has begun a serious descent if draghi has let go

but the europeans have gotten away a lot with the euro trying to keep that down. the korean versus gotten away with a lot i tuns focus on china. that was correct i do think draghi should let go. this is really expensive stuff you don't get double digit gains in italy for the most expensive cosmetics if it's really doing bad. >> we've been over the bannon dynamic earlier. some argue with bannon out even if he's an outside influence this aggressiveness on trade takes a hit. >> i think it does it's about the bannon group.

>> let's get to the opening bell and the s&p at the bottom of your screen this morning it's mortgage holdings unveiling a new brand name mr. cooper over the nasdaq here. peter thompson, president of the 71st session of the general assembly of the united nations speaking of which, there's still a school of investors that are wondering and be watching whether the north korea back and forth resurges. >> yeah whatever you do, maneuvers, the north korean's responded to put north korea back in two weeks ago we had the extension with north korea last week we had charlottesville. i was hoping this weekend would be jackson hole which is kind of the janet yellen saying we can't really raise, we can't really lower. this is as you said it's a quite week but that's exactly what we

had. someone from the fed will say something or someone from treasury or cohen will be like you know, i've had it. he should not have it. there was a shot at him in bright bart today. >> get used to that. >> yeah, bannon didn't hang in the hamptons someone saw one of the advisers to trump in the hamptons and were saying wow it's a pretty liberal town what does it mean? >> geez. >> by the way, among the leerds this morning the free tps port reminds me what you make of coppers action over the last couple of weeks. >> the china is strong

copper is showing strength it's related to the fact that the air is so bad in china i was walking with a scientist friend of mine. >> copper year to date outperformed the nasdaq. >> copper is huge. they're building it. that's a great point especially because the nasdaq has faang. remember faang >> i do. >> people forget about faang i have to tell you the reason why faang doesn't die is the companies have great growth. you actually have to have a thesis you can't just say faang is dead did snap suddenly take back instagram? did they suddenly start losing to jet.com netflix yeah talk about whether it's a hail mary or not but disney's

earnings are going to get a hit. alphabet acts badly. my charitable trust acts badly but i don't have a reason why. there's people, proctor pulled some ads because they were against things that people weren't happy with and i think alphabet is doing it's best to clear that up. >> starbucks got the cover of barrens and said things about mobile that you said for months. >> i know, my charitable trust owns it and i said well maybe it's not as bad. i bumped into, well let's just put it this way, there are -- i bumped into him and they really solved probably and they did it by saying let's go sit in a store in massachusetts and solve this let's watch and when they did they were like blown away by how bad it was so they had to do this multiyear roll out where they solved it and also my panera, which i love, that was

the best acting by far, best really good program. starbucks affinity program has slowed down growth and they have not solved mobile pay that i can think of i got it with skim i'm not one of those people that's a defector. but i'm just saying what people were saying. >> it could grow 20% or so over 12 months. >> well that will be a god send.

>> despite the weakness in retail today jim and it's foot locker, nike, ultra at the bottom of the list today. >> i thought that was very interesting. i think that lulu is having a good quarter the work i've done on it says it was good it moved from $49 to $70 and they're talking about 5% comps i have to tell you after foot locker i am gun shy but they're doing a good job there the issue here is that things are changing so fast like johnson on the foot locker call he did not see anything coming because there was no reason to

>> it's like this is the best, worst idea it's the worst, best, whatever holy cow. >> $19.44. >> and i think when you listen to him on the estee lauder call he talks about the brick and mortar mall is the weakest part of the world the whole world. spain has better malls and italy and they're talking about u.k. doing great but the u.s. mall is just awful

the starbucks in the mall were never really that consequential but when you read these conference calls last week all you can say is remember when you used to go to the mall and now you just go on amazon and amazon

is a constant theme. >> follow the dark star. >> the dark star. >> and mr. blake came up with that, it's like on the board at procter & gamble it's one of the reasons that it's like not a give me. he's the lead director he's the man that put boeing on a course that i'm sure he would say listen i didn't just -- i was born on third base a little bit. he's fabulous but wow, looks like he gave him a pretty good hand so proctor, a lot of ways to win procter & gamble now. >> overall, indices largely unchanged. nike is going to be your lagered this morning. >> that nike call. how about underarmour. they paid 12 million for steph curry. it wasn't even mentioned there was a great line on that call and great line is that younger people need a story. >> i guess that's true. >> they haven't heard of jordan

and nike. >> so eventually becomes like chuck taylor it's sort of a name you know. >> chuck taylor, that would be good now against that, jordan he they did say still has a good franchise but the double digit decline in basketball, basketball is where the money is >> youth is unfathomable saw some numbers from some of the theme parks that weren't that good and then they liked selfies and they like the new go pro the millennials are driving me insane. >> they're driving everyone inside. >> i'm tired of their fickle nature they do like instagram they're like the backdrop of instagram. >> with all that dow is down 5

let's get to bob on the floor. good morning, bob. >> good morning, carl. happy monday everybody just a few more declining stocks let's take a look at the sectors. gold up again. gold hit the highest levels of the year on friday although it closed on the down side. utilities have been a winner for the month and for the year historic highs last week health care is almost a leadership group banks are just not doing it anymore. they down 5% for the month they're approaching the lows for the year and we know what a mess energy has been. speak of energy there's a lot of talk about value coming back in the second half of the year. i don't know, value is oil stocks and some financials a lot of people are trying to make arguments again about buying oil a number of notes out over the weekend. talking about lower capital expenditures will be putting pressure on the u.s. supply. this is going to be good news. finally they'll drop capital

expenditures and another argument being made is that the fed tightening means there will be less easy cash and fewer near term supply expectations we'll see. all i can tell you is let's look at the xle people had their head handed to them all year trying to buy oil dips and oil rallies and it hasn't worked. those are the energy stock it's been straight down. we talked about the fact that everyone had $60 oil for the third quarter. it's 46, $47 and people had to keep reducing their numbers and you can see the street has so far given up on any kind of rally. hope springs eternal other interesting phenomenons going on here. the s&p remembers up about 8% for the year there's been a lot of commentary and discussion about this. we talked about it on friday li a lot of people believe that since companies get revenues from the u.s. that some people

feel that the trump tax cuts may be less likely and maybe a vote in a way there you see the s&p 500 on the top line and that's the orange and there you see the russell 2,000 on the bottom line some people are trying to argue this is less confidence in the tax cut idea so that extent you might want to watch this if that is true to see if sentiment turns around now that others are working on tax policy or at least that's what they say that they're doing at this time finally it's a very, very sad day at the new york stock exchange one of the great titans on the floor of the new york stock exchange passed away jimmy maguire. he served for 60 years beginning in 1949. there he is ringing the bell including the new york stock exchange he was a specialist on the floor for decades.

he traded the stock of the washington post but perhaps most famously he was the specialest for berkshire hathaway and very good friend of warren buffets. he was widely respected on the floor for his witt and leadership and always lead the christmas carol singing wait until thenelly he allowed me to stand next to him and watch trading in berkshire. i learned a lot about how the floor on rats by staperates ande me to warren buffet. he is survived by a very large family including his sons james jr. and paul that also work here on the floor jimmy maguire was 86 years old a titan has passed away. we will miss him. >> absolute legend bob, thank you very much let's get to the oil sector this

morning and check out prices jackie at the commodity desk. >> good morning. well, bob laid out a nice picture of the things to watch as we head into the fall but group prices are a little tentative this morning and sits balancing factors now keeping prices in check. the things you need to work for, we have an eye on that refinery outage in tex. it's small 25,000 barrels a day and it was already on maintenance not a huge red flag. the inventory is on wednesday. the u.s. production number is buried in that report and the rig counts on friday

carl. >> thank you very much still to come the show down between tech and washington. we'll discuss that and more with venture capitalist roger mcnamee this morning in squawk ally. dow is down 9 points and take a look at the movement in treasuries this morning. the 10 year yield getting loes to a 2 month low back in a moment

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that's according to recode previously there had been a short list of candidates they are been looking for a ceo since the co-founder sat down in june kara swisher with her story said a vote expected within two

weeks. >> wow i thought it was very surprising maybe he brings a steady hand and that's what is needed. you go from a colosas. >> it's a free for all every story makes it look like animal house he did not have an easy run there. >> if you're going to build the case, kara reports that he is close to ariana huffington, if you can go further and say truly global. >> he knows where to go. i think that it's not a complimentary skill. it does show you that.

>> if it happens get ready for the hot takes on what it mean ifs for founder of a start up. i think that you can do some

things infrastructure is target. it's as true as the fact that it will be dark at one point today. >> i remember when we interviewed i think in november asked him about if he regretted getting out of financials. >> almost all the moves were i

remember when he had a terrible season before he went to kansas city and i happen to love him he said listen it's my fault but in this game that we're in you never hear that said it was my fault and yet they get paid a lot it would be really great if someone were to say the stock went down and. >> you may think it's bad but no it's not play office it was a game and it makes me crazy where they just say you know what, we were bad because i didn't do a good job. >> in sports a fan changes loyalties cost you nothing really when they sell their

shares. >> that's very, very te. e'll get stock trading with jim in a moment. dow is down 21

>> here's the deal one of the things that stuck out to me when i read the automatic data piece is how good work day was. he has great growth and another thing is i felt great about those. now i'm going to be speaking to the ceo. i don't want to find out exactly what is wrong in ackman's support because he presented a series of things that made you feel like whoa, maybe this company is underearning because it's such a great company. it is great and then we also have a data center company i keep track of those because that tells you about faang they all use data centers.

they're a great business real estate trust they have done a fantastic job but have to know because the companies i deal with in payroll personally and on air are killing it and it's a very good company but if you read ackman it could be much greater could be good. >> when we come back the china trade r wars are focused losing steam in the early going here dow is down 42 don't go away. at fidelity, trades are now just $4.95.

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welcome back to squawk on the street mike is is back from the break at post 9 of the new york stock exchange david faber is off today

our road map start with the markets and two straight weeks of declines for the dow and the s&p. >> more shake ups in washington. steve bannon is out. carl icahn stepping down and a total solar eclipse across the u.s. for the first time in nearly a century we'll go live in oregon where the shadow will hit land fall first on the continent. >> let's get a quick step on stocks at this hour. two straight weeks of declines for the s&p and dow. that puts the dow about 2, 2.5% away from its record close the s&p more than that mike we're glad to have you back small caps have been a big focus for investors. trump's honeymoon turning into a risky divorce and i wonder if he we called it the trump rally after at the election -- >> it's been months in the

making the market has been showing a lot of fatigue under the surface. obviously the dollar has been weak so all the signs of the slower growth story have been manifested in the markets and more new lows than new highs but the headline index is we only had one 3% pull back in over a year and it might be where the indexes are coming down to meet what the average stocks have been doing for awhile now. >> larry kudlow. >> hole low. it's interesting to me first quarter 1% second quarter 2.6 third quarter we're still living in atlanta fed now gdp model 3.8. and i want to make the point you're talk about jackson hole or will talk about jackson hole.

low inflation is a very good thing. very good thing. if you have a 4% nominal gdp and inflation rate is 1.5% you have 2.5% real. i don't know why the fed wants to raise the inflation rate. the fed should keep the dollars steady and i know they're going to normalize and they need a tax cut. we'll talk about that in a second low inflation is great it's the pathway to higher growth and real income. don't you want the data to confirm your target. >> i could live with zero. we used to call that price stability which means plus 2, minus 2 range. that's fine. again these low -- wages growing

at 2.5 that's 4.5% for arguments sake at a 1.5% inflation rate that's 3% real income for wage earners. if you have 2 or 2.5% they lose a point. prosperity an growth done cause inflation. >> something is not right in the economy when we're not seeing prices rise at all and in many sectors it's deflating. >> we had technology deflation it's the best kind for the last 25 years it's absolutely terrific it's not about slack in the economy. if the fed and the treasury protect the value of the dollar and keep the money supply.

it was also an inflation rally. that's the story also undermined by this idea we have to live with 1.7% cpi. >> 1% cpi is great. >> you're talk about 2 to 3% nominal growth economy i don't know if the stock market loves the idea of that forever. >> go back to this great piece business rivals agree on policy. wall street journal, it's the op-ed of the year if you ask me. fred smith of fed ex and david abney of ups bitter rivals but mr. abney generally a democrat giver, what are they telling us here they're saying if you cut corporate taxes and simplify the system, if you invest in

infrastructure proerpperly and have fair and free trade, that's what you get 3 to 4%. there it is. couldn't be any better nobody is smarter than fred smith. this is your road map and the sooner the white house can get back to this message, the better off they're going to be. >> by the way as we're talking here s&p down -- dow down 55 testing friday's lows when we were buffet bd ed by rumors of bannon's future but your argument is get back to consistency on message and then what happens >> then devote all your resources. all your resources to tax cuts and tax reform and by the way, trump stepped on his lines last week last week for trump was a total eclipse of the sun

right now the white house tax cutting team is working very well with the house. i want to see more action in the senate if the senate can come in here and get moving on tax reform there's so much agreement on this it's already there it's the argument. simplify and cut corporate tax rate infrastructure free and fair trade now we could get a tax cut bill in the 4th quarter if the senate comes on board at the worst most washington watchers say first quarter it's out there and it's going to be retroactive and great for the economy and great for trump's political standing that's his message >> he picked a fight with the senate leader mitch mcconnell. doesn't that raise questions

about the senate's ability to work with him. >> he needs him. >> do you have senators on this show >> no. >> you have to spend time with senators they're wonderful people they're just fabulous people they have their own kingdoms and emotions pieempires and say what they feel like saying. mitch mcconnell has done a good job if you ask me and he'll come together with trump. all of these constituents, senators, the ceos who bolted from the two white house committees, okay they will all come together on a strong tax cut and reform plan i would stick with business tax cuts myself. maybe double the standard deduction but that's not for me to say they'll come back. the ceos will come back. president trump will be on the

phone to the ceos. he'll be on the phone to mitch mcconnell. that's the way you work down there. senators are senators. i don't want to mess with him. a lot of republicans are good to me they used to come on my tv show. trump is giving a speech tonight on afghanistan this is not my favorite topic. not, we're going to put another 5,000 troops in afghanistan. i'm not sure but what he needs to do right after labor day is launch the tax cut and reform movement wit a speech from the oval office to the nation and then go around the country and rally people in favor of this because this piece says that 2% annual growth in recent years isn't enough. we he can pick up 1 to 2% more if we follow this simple plan of

taxes and infrastructure and trading. a agree. listen to these guys these are business men and run successful companies that's the blueprint that's the model. >> what if labor day comes and goes and instead of tax reform we're talking about getting the debt ceiling raised. >> that has to happen. >> you can't obligate spending and then not go for it this is a common sense thing

have to take the overall mandate and whatever they're called the essential benefits mandate >> steve bannon as a way to increase the likelihood of getting done what you're talk about and powering them to move forward with this agenda after i would add that very passionate

and personal defense of the president from the treasury secretary this weekend. >> love that by the way. steve is such a good guy he is a class act. look it's hard for me. the fact that his protection was not only the big peoples table and adults table that's generally a good thing for

business it's right here. really maybe he should do this from the oval office guys layed it out. >> you save us time on the intro. >> i just love to come down to this show first thing in the morning is great you guys are great thank you. >> thank you great to see you. >> when we come back speaking of trade the trump administration taking aim at china. we'll discuss the possible risks of a trade war an also that renegotiation of nafta with the ceo of the largest independent seal tube manufacturer in north korea. now a look at what's coming up next. >> guys we are less than two hours away from the start of the eclipse. at that point folks here will have to get rid of these and put on these oh wow i can look at the sun right now.

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if you're flying there's flights going east right into the eclipse. a call into the faa and pilots are being warned don't look at the sun. some southwest flights are going to be handing out these solar glasses. hard to find these now have to get these on ebay. look at the map. it does start here in oregon and it starts technically around 9:06 local peaking with totality at 10:19 and only during that two minutes of total eclipse if you are

underneath it can you take off the solar glasses and look with the naked eye but only people directly under it and only during that brief period >> now you in new york you'll have a partial eclipse and don't look at it without these the sun will be more than half covered. some schools are keeping kids

inside >> i'm so excited. it's supposed to be me. >> that's how you know whether the glasses are the right one. >> yes it says iso 12312-2 it says that but these are also made in china so i have a back up pair because fraudulent solar glasses have been a problem. >> we can't wait as we get closer and closer to the totality where you are

jane wells in oregon we'll take a quick break here. take a look at sempra energy announcing a deal to buy encore for nearly 10 billion in cash beating out berkshire that had a bit in place dow down 50 and s&p down 5 back in a minute ♪ there's nothing more important than your health. so if you're on medicare or will be soon, you may want more than parts a and b here's why. medicare only covers about 80% of your part b medical expenses. the rest is up to you. you might want to consider an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. like any medicare supplement insurance plan, these help pick up some of what medicare doesn't pay. and, these plans let you choose any doctor

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good morning, welcome. >> hi, good morning. do you expect him to make good on threats to china's steel in terms of their type of projectionist measures. >> we hope so. the entire industry is waiting for him to do that and we have been waiting for a

long time and battled with china for many, many years at some point this has to come to a head. >> what are you expecting there exactly and how is it going to influence american and other north american steel producers and steel manufacturers. >> it's really china influences the world steel manufacturers which in-turn influences manufacturers. they have been forcing others to move their steel into our country along with china and circumvent those already with the u.s. and the vast majority of those imports following him down

creating jobs, great paying jobs 25, $30 an hour rather than 10 or $12 an hour service jobs we're seeing created today. >> but as a global business leader do you worry about the threat of trade and economic warfare. when it comes to trying to tamp down the north korean threat. >> well look there's no question we're in an economic trade war and have been for many, many years. and you can't have a chronic trade imbalance like we do now we had a 40 year trade deficit and, you know, it's just crushing this country so sure china needs us as much as we need them. they ship $350 trade surplus into tuchu.s. every year and ife

were cutoff it would crush them also it's a little bit of give and take here but do it in a responsible way. we can't let them be in a runaway train. >> aggressive action might increase prices here and obviously be good for steel jobs but what about consumers of steel. there's many domestic industries that would complain. >> i heard that argument so many times. first off the increase >> when people look at a headline price of a product what's the true cost to the consumer we have a $20 trillion deficit we have communities that don't have jobs.

you have crime and true cost of the product. it's the headline price of the product. we're paying for it one way or another. >> there is someone that does a lot of business in canada and i think on the mexican boarder as well what's your expectations looks like the first round concluded with a very aggressive time line going forward. thr going to meet in september and they want to wrap it up by the end of this year or first quarter. how much do you think is actually going to get done when it comes to machg the tough rhetoric from the trump administrati administration. >> remember canada and the u.s. doesn't have a trade deficit we do two way trade.

i'm the perfect example. our company is a great success story. i have one plant in canada i started with five employees. we have 15 plants in the u.s. now with over 2,000 employees so this nafta agreement for many canadian and u. s. kpacompanies worked well. where the problem lies are these companies that go to mexico and have chronic trade deficit with mexico it's not the same. mexico is not the same as canada and the u.s. there are issues and it's appropriate to talk about those. and we need to address it. >> what do you mean? >> well, it's $70 billion trade deficit, you know, coming into the u.s. from mexico those jobs are going there for a

reason they're going there to circumvent good paying jobs and labor. they don't have the same safety standards and they don't have safety and then coming into mexico is particularly the auto industry they're coming in from third party countries being assembled in mexico into cars and then circumventing duties that would otherwise be in the u.s. by shipping a car into the u.s. so now you have a trade in mexico car where really most of those are coming in from other countries that would otherwise apply to if they came into the u.s. and the products coming in as a whole. >> we're out of time >> we'll see if that's a good thing or a bad thing thank you for joining us.

>> recode is reporting that the former ceo is going to become uber's ceo recode said two other executives are said to be in the running. had a discussion with jim and it's only 61 governments and wasn't running close to what ge was. >> no, it might be the next act but this is the top ten about what uber is looking for it's the type of executive the type of even cultural mix that they're looking at. >> there's no question on a

global corporate world it's worked in his favor and that might be what they're looking for. >> let's get a news update with sue herrera. >> good morning. a wide investigation of the pacific fleet after two recent collisions today american, singapore and malaysian armed forces are searching for the sailors missing after an early collision between the uss john mccain and oil tanker five soldiers were injured and the mccain suffered significant hull damage. they're extending the search to all of europe. an overnight raid took place

earlier today. authorities say they do know the identity of that driver. >> big ben sounded the hour for the last time today, almost four years of repair work after 12 deep bongs at noon local time the bell begins it's longest period of silence since it first range out in 1859. >> fans are flocking to the hollywood star of the late jerry lewis. flowers and a picture of the entertainer grace that star. his family said he died of natural causes on sunday at his las vegas home the actor and comedian was 91 years old. you're up to date. i'll send bakt downtoit back do you. >> i think i read that he has two stars. one for his film work and one for tv so that's an interesting distinction. thank you, sue when we come back more on the shake up in the president's inner circle former secretary of state is with us. and we'll bring you up to date on what is going on in the

markets. nasdaq under performing. squawk on the street will be right back don't go away.

>> good to see you we have been talking about how the index, the major index is coming back flirting with a 3% decline but there's a tired feel underneath the surface for awhile small cap stocks underperforming and we talked about all of this. you see economic growth on track looking good august being august.

>> i don't think they're going to get that kind of a seizure. maybe some sort of digesdigesti because you're right housing starts, consumer confidence, the yield curve, none of them is pointing into the red alert category so i would tend to say that it's a disectio digestion that would be taken advantage of >> they continue to do well. credit markets are pretty well behaved. how does it own that out for you in terms of the end of the year. >> august is being august i guess with this volatility emerging markets are doing well. financial conditions are supportive you know, this is the 4th time

in the last 10 years global earnings measured by the all country world index have been $30. they did in '08, 2011, 2014 and right now. every three years. this time i think we push through and we have to support these well above average valuations for this market. >> one thing that is certainly helping when it comes to the emerging markets trade is the dollar getting weaker by the day again today that's what stands out to me in terms of the action is that a trump trade? >> it is a little bit of a trump trade. it's also a little bit focused on strength in the euro and strength in the yen based on the potential for changes and monetary conditions and certainly better economic growth in europe but here's the thing the dollar may not continue to go down. there's a lot of short positioning right now. we have seen a lot of that and now we're looking at a fed that might still hike interest rates late they are year it's one of the four drivers for emerging

market stocks and great growth within the region and stable commodity prices and other supports that may keep earnings headed higher. >> probably hitting toward the 2% level and not really dipping into below that. >> that would be a new low for 17 right >> well for '17 but i think the real question is what's going to be happening with inflation. yes we do have the lowest unemployment rate in the last 16 years. we do have questions about whether that's going to cause the fed to sit on their hahnds and not raise rates between now and the end of the year. the dollar probably will soften more into the high 80s on a currency basket level and also probably more opportunistic where we're looking at low valuations relatively speaking overseas and we're looking at a

rolling five year relative strength that's at extreme lows. and they will hit them where they aim. >> we talk about how unusually calm it's been and how long it's been since we had our 5% decline in the big cap indexes it seems like those things are shadowing the conversation and now you have everybody saying they cooperate what's your call this time >> volatility should be in the market all this year we have seen individual investors buying. buying when we had little dips and even buying when we haven't. that's steady in flow of money from the individual investor something we haven't seen in a lot of years there were net outflows through much of 2016 to 2017

we have seen it across the industry as well that's a plus supporting this market and helping to keep those dips from being any more significant. we have seen two 1.5% dips maybe that's all we get. i don't know if holding off and waiting to buy the big dip was the strategy. >> we'll see how that plays out into september thank you very much. >> and as we head into a break here taking a look at shares of herbalife on the move soaring after announcing a self-tender offer and a growing private transaction. the stock up is 9.5% plus when we come back, icahn out. we'll discuss the latest shake up in the president's inner circle, what it means for his agenda and more. former undersecretary of state with us when squawk on the street returns

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>> another shake up over the weekend. aman is outside of the white house with more on that. good morning. >> good morning, carl re-signing

that roll. i chose to end this arrangement with your blessing because i didn't want partisan bickering about my role in anyway to cloud your administration. called carl icahn's failed raid on washington. he may have been using that position inappropriately to line his own pockets. he denied any wrong doing and the white house has no official comment on this today beyond what they have said previously talking to some aids here at the white house today on background they emphasize that icahn's appointment was done during the transition and never formally ratified or implemented after january 20th that was after mr. trump was sworn in as president of the

united states and that might have some legal significance in all of this. some of the legal issues we'll touch on what icahn's role was. no official portfolio or set of responsibilities and no government salary so we'll wait and see if there's any other fall out but carl icahn officially out of the inner circle. >> for more on the president's legislative agenda we're swroined by the former under secretary of state for economic growth and environment it's great to have you back on the program. good morning. >> great to be with you carl. >> normally narcotic wouthe mard love to talk about a big push for tax reform whether the relationship between the white house and ceos can be saved. how is this going to fall out? >> well, that is a big issue because he relied very substantially on the wisdom of a lot of very good ceos and his

advisory groups and now of course they're disbanded because these people were leaving in droves i think also while there should be a lot of emphasis on what the tax reform proposal is going to look like and much of it is coming from the congress, there's a number of issues between now and then the budget appropriations that comes up at the end of september and also increasing the debt ceiling unless the congress can agree on a new appropriations bill and do it relatively soon we had what we had in 2013 which is the government shutdown and unless the congress can agree on raising the debt ceiling we run the real risk of a debt default. perhaps temporary and perhaps longer those issues will be complicated and hit the market quickly and will divert attention from the

tax reform proposals which they want to put forward at some point. >> so given how meaningful those distractions would be it's hard to find people that are willing to go out an a limb and suggest whether or not a default would happen if is your thinking any clearer? >> i can't really improve on that i think there's so much uncertainty in washington. in the congress first of all because you have to get the freedom caucus on board. and they're not going to do that so we still don't know what the white house is going to do the treasury secretary is urging the congress to pass a clean debt increase, debt ceiling increase and do it very quickly so you don't come up to the brink but there's other members of the administration but also

credibility coming into question with your alabama lice. >> 2011 lead to the drop of our aaa credit rating. i wanted to get your quick thoughts of geopolitics and expertise and the market is paying attention especially around north korea the tonight the president is said to address the nation on afghanistan. does he need to reset his rhetoric, strategy at all when it comes to korea after the fire and fury guam threats, guam tourism boost that came the last few weeks? >> well i think he does and it's

how do you work in a comprehensive way with the russians and it remains to be seen what this diplomacy is going to look like topgs of war is one that the pentagon has been very leery of because there's a lot of koreans right near the dmz and a lot of americans there and we have a lot of allies so to get that war started would right at the very beginning entail a huge number of losses of lives so needs to have a strategy that goes beyond the rhetoric and it has to be done relatively quickly. it's certainly true we can't continue to allow the koreans to continue to develop nuclear capabilities on the other hand, war being the last option, somewhere in the middle there needs to be a strategy and it needs to be worked out with china. >> as relates to trade issues

would you read into anything the departure of steve bannon instead of taking off the table more aggressive restrictive trade measures or do you think it remains an open question as to what the stance is going to be of the administration. >> it is in favor hawkish trade policy and hawkish in the sense you take a tough line without alternative measures, for instance, get rid of tpp but there is no plan b for strengthening our trade ties in the pacific. that's one example i think the president pulled back a little bit vis-a-vis china although he did a number of things that irritated them for sure in order to get their cooperation on the big issue of north korea. but there is still a notion, particularly among trump's base, of taking a much tougher line in asia and also we'll see with

respect to nafta whether the administration wants to come up with an agreed solution to reform nafta or really wants to go out and be so tough and try to get things obtainable by either the canadians or the mexicans and blow it up and blowing up of nafta will be very disruptive. so finding the right kprimz may mean that his base doesn't get as much as they want to blow it up, it would really endanger a lot of trade and the american business community and american workers would be adversely affected >> interesting you bring in one last question here, bob. you bring up an issue for a lot of the talk on nato, nast yashgs even the wall trade war, fire and fury and tonight afghanistan, at the end, the president takes a net

conventional path. do you think that's fair can we start to build some pattern recognition at this point? >> so far that has been the case by and large withdrawing from nafta was a -- from tpp was a fairly radical step but other than that, with respect and nafta, at least he decided not withdraw he decided to improve the agreement, renegotiate the agreement. he came around ultimately on nato in article five so for the moment he has not taken disruptive measures. his rhetoric has been very tough. and acrimonious and very unsettling to allies around the world on trade and many other things the notion of using troops, for instance, in venezuela the fire and fury with respect to north korea the actions are more moderate

than the words the danger is at some point he could get frustrated or provoked they could take more radical action in the area of trade that could cause a trade war and they could do something very disruptive in some other part of the world. but for the moment, i think cooler heads have prevailed on most issues. he's got a number of rational people around him. it is very sound and the secretary of defense has evidenced a lot of very sound wisdom the way he advised the and the way he spoke about the issues. and mcmaster, the national security adviser is a very moderate guy they're tough people they want to be assertive. they're not rational people. he may be tough in the language but not erratic or disruptive in

his policies it remains to be seen. he's very hard to predict. >> sure. >> bob, thank you so much. it's good to see you >> good to be with you thanks >> as we head to break, take a look at shares of adp. the payroll processing board voted not to nominate any of hershing square's candidates don't miss this interview on "mad money" tonight with the ceo of adp "squawk on the street" will be right back risk of burst pipes and water damage... soon, insurance companies won't pay for damages. that is, not if they can help prevent damages from happening in the first place. at cognizant, we're turning the industry known for processing claims into one focused on prevention with predictive analytics, helping them proactively protect the things that matter most. get ready, because we're helping leading companies see it- and see it through-with digital.

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welcome back to "squawk on the street." tech is standing out as the worst performing s&p 500 sector. semiconductors the big