biggest gainers. materials and financials are today's laggers. check out utilities, etf getting a fresh all time high earlier in the session it's on pace for the fourth positive month in the last five. now the financials, a few regional banks losing the main grounds. key cores regions financial, coamerica are lower by 2% w that, i send it back down down for the start of "squawk alley" to sarah, mike, and john back to you. >> thank you, morgan good morning it is 8:00 a.m. at apple headquarters in california 11:00 a.m. here on wall street and "squawk alley" is live

♪ >> good morning. welcome to "squawk alley." with me at post 9, sarah eisen, mike santoli >> north korea firing an unidentified ballistic missile over japan last night. the first such projectile to bypass the island nation since back in 2009 our very own reporter is in japan now with the latest response >> well, like so many japanese here, we were woken up around 6:00 a.m. local time with that latest launch coming from north korea triggering a nationwide alert. broadcasters breaking into programming, warning of a missile passing through. some residents in the areas in northern japan reported getting text messages on their phone urging them to take cover and others said sirens went off in the community calling on residents to look for a safe place. this is a missile that traveled

well over 1600 miles passed over the northern island of hoe kkkao before landing in the pacific ocean. the prime minister abe con deping this saying he would make every possible effort to protect the lives of the japanese. he did speak with president trump over in the u.s. so this is a conversation that reportedly lasted roughly 40 minutes. the prime minister saying that president trump reiterated the u.s. is 100% with japan and committed to japan's defense take a listen. >> translator: this missile which flew over japan poses an unprecedented serious and grave threat and greatly damages regional peace and stability >> the timing of this is no coincidence. this comes amid the joint u.s. south korean military exercises. japanese and american forces also have been conducting exercises over the last few weeks. the prime minister did say this was a missile that was tracked shortly after launch roughly 15 minutes until it landed in the pacific ocean

which is raising some questions about why, in fact, the pack 3 missiles, pack three batteries was not given the green light. there are three on three u.s. bases here in japan. the commander of japan's air self-defense forces simply saying that he didn't get the green light because necessity didn't see a threat to japanese territory. we should mention that the japanese certainly used to provications from north korea with well over a dozen missile launches coming so far this year with half landing in japan's exclusive economic zone. but there is a sense that this time is different. largely because this was a ballistic missile that was designed to carry nuclear payload that passed over japanese airspace. there the implications of the failed launch certainly significant considering it may have fallen on japanese territory. cnbc, japan. and our thanks to our reporter with japan on alert

strong words from president trump following this latest act of aggression. our pentagon correspondent is standing by. you've been covering this all year long. 18 missiles now. what is the u.s. administration do to respond? >> well, the latest on this missile was that was not an intercontinental ballistic missile. that should cool tensions a little bit i have to tell you, officials here at the png while saying, yes, they're ready to present options to president trump, they're still saying diplomacy is the watch word. that is really a theme throughout all of this even when things have gotten quite hot, the pentagon has always said we want to work this diplomatically through our partners here's something we haven't seen yet. we haven't seen a response from either the whole of government meaning core evens or japanese and americans. in the past, almost 12 hours to the dot after a launch, the u.s. either launched some atafk missiles, they fired them in the ocean or flown the bombers up from guam. that hasn't happened yet know they haven't moved any

assets into the region it's very clear that they are taking this very seriously as nikki haley said, they're calling for an emergency session up at the u.n. security council is a very serious matter i'll read the quote you to something serious thooz happen over north korea's violation of security council resolution. enough is enough guys, that's a message as much to the koreans, it is, to the chinese. guys >> all right thank you, hans. meantime, rain continues to fall in southeast texas with flooding expected to peak tomorrow or thursday we've got some live pictures, i believe, from houston where rescue operations, yes, are currently under way and the flooding flooding in dickenson has gotten worse. president trump set to visit the region in just over an hour. our contessa brewer is live with the latest contessa >> the big news we're watching right now is that the two dams

outside of houston have both overtopped they're at capacity. that put six neighborhoods at risk the message to neighborhoods, they're neighbor that's had not previously evacuated to get out now. we're just getting a notice from brazoria county. the levee at columbia lakes breached this is an hour south of houston. they're telling people to get out now. so the dams, levees are at capacity they're overflowing. they know that flooding is going to get worse we're at the convention center now where some 10,000 people are currently getting shelter. look here. we're seeing the police officers just coming in to relieve the officers who have already been on duty. this is exhausting work for everybody. and they're arriving as there are more evacuees coming in. we've seen people donating different kinds of supplies here coming in. but the situation is fluid as i said, logistically they're preparing now for more people to come in because of these levees overtopping at capacity. we've seen them rise something

five feet in eight hours early this morning so incredible situation here it can be very dangerous guys >> yeah. i mean we're sort of mesmerized by some of the devastating photos and footage that we're seeing do they have the capacity in the shelters and are there enough rescue operations on the ground between the local authorities and the federal authorities? >> well, what we've heard from the local authorities is that for people who have not been able to get out yet, they should be putting a towel or a sheet outside a window so that first responders know to come and check the house for people who need to be rescued as for capacity, you know, it's a convention center. has tuj. they had set up with cots and the like for 5,000 people. they already have double that amount they ordered more cots, more sheets, more comfort kits and they say in order to keep the supply southern baptist kitchens is coming in they have the capacity to feed 20,000 people.

and then they'll be resupplied with food and toiletries and other necessities by helicopter. anecdotal lishgs i heard helicopters at minute maid park yesterday where the houston astros play. and i couldn't see them. i don't know whether that they're using that as a staging ground i've been trying to get over there to find out. they said the choppers are now the only means of getting supplies reliably in and out >> contessa, thank you so much we'll continue to check in with you. live in houston where the city and surrounding areas are being hit with historic flooding again today. >> meantime, we're keeping track of the markets the major averages pairing earlier losses following that missile launch from north korea. the dow actually has just gone positive a few notable individual markets to watch, gold saw that safe haven bid early. gold trading near one month highs. oil near one month lows. gasoline prices continue to surge as refineries are kept shut down. joining us now is charles schwab

chief strategist and oppenheimer chief strategist so jeff, as we've seen before when it odometers north korean tensions, there is a buy the dip mentality. it is short lived. do you expect to continue to see this pattern even though what we saw overnight was a clear case lags putting japan in the threat >> it did. but you know, it's interesting the country most exposed to and in this relation to military conflict is south korea. south korean stock is down 23 basis points yesterday and finished at the highs of the session. i think this mild response is typical. i think we like -- we're likely to see more it as north korean continues to provoke the missile technology still very focused on soaring earnings earnings revisions are up 20% this year. expectations for next year's earnings up 20%. so are stocks in south korea

it's really about the earnings not about the geopolitical conflict that's important for investors to keep in mind. >> john, certainly that's been the focus of investors for most of the year. obviously, the funneled. al improvement on the corporate side with global growth coming in line. i do wonder though if you look at the tone of the markets just now and the past several days, you have government yields government buying yields falling throughout the world you have a very weak dollar. you have kind of more defensive groups of stocks working right now to hold the market up. so are we reassessing the picture for global growth or just kind of resting for a little while >> mike, i think it's an interim action right now by the market it is in the proservice digesting the escalation of the uncertainty that's coming out of north korea. but it's also considering what is happening in houston, watching weather conditions. and the third item is simply the weak before labor day and so the

market is really drifting sort of staying in place in here. while remaining very cognizant of the challenges. i think we've got to see what happens when everybody gets back from the holiday my thought is once again funneled ales remain the main picture and underlying the problem in north korea in what is the uncertainty that is generated there, it is 60 years of north korea being a strategic ally of china. and the play that is happening right now is north korea can push just so far before it endangers china's economic store yichl right now north korea is very, very powerful strategic ally in the sense that it prevents the unification of north and south korea which can create a juggernaut parallel to germany, germany's reunification that occurred after the fall of the berlin wall.

china is watching this very carefully. they want to show support in some sense for north korea but at the same time, at some point it is likely to cut the tej because t tether because the importance of the story in china is what prevents another chinese revolution in china and the chinese government recognizes that >> jeff, quite a run precious metals gold and silver have been on since early july how much should we read into that and souch safehow much saf investors lookingfor >> it's interesting. there is some flight to quality in the precious metals we've seen base metals rally as well the common denominator is weaker and weaker dollar. frankly, the extended weakness in the dollar is a bit of a surprise as bullish as traders were on the dollar in the beginning of this year based on speculative futures and options contracts, they are now that bearish on the dollar we're at the point usually where you get a reversal floofrt five, six, seven years, a reversal in

movements in the dollar f that's the case, you'd expect to see both gold and base metal prices begin to come down if can you see some firmness come back to that dollar. >> so what's with that, jeff is the dollar no longer the safe haven? >> no. i guess not. it's funy. you know, we certainly didn't see the rally here instead the yen has become this safe haven currency. kind of interesting given the conflict is based in the east. >> that's always the case. but what is happening now is the euro is appearing as a safe haven. a lot of people are pointing to the politics there first macron and then merkel. >> that's been a factor. >> i'd have to think though, the trend is for the dollar to weaken, once the federal reserve establishes a policy of raising interest rates usually the dollar strengthens and in anticipation of a fed funds cycle. and then once the fed funds height sickle begins, the dollar begins to rain and then also as the federal reserve either raises rates or implies or indicates that it is

moving to higher rates, what occurs is that it's generally a sign of the economy and the u.s. getting better economically. we buy a lot of foreign goods when we buy foreign goods it tends to strengthen the foreign exports currency that's we buy and it weakens the dollar. i think it's got a lot less to do with safe haven gold safe haven play i think is accurate and i'll certainly agree that when the dollar is weak, gold tends to strengthen. >> i'll quickly add that we haven't yet seen a negative impact on exports from the euro-zone from the very strong euro and the euro may hang in here with some strength until we start to see that happen we haven't seen that in forward indicators of export growth like the pmi indexes in europe. they remain fairly strong. >> yes >> well, it certainly is a new dynamic. we should mention treasury yields are at the lows of the year thank you for joining us jeff and john. when we come back, tim cook asking for moral responsibility

among the country's top ceos then we see with one ceo taking that message to heart opening his own retail stores for victims of hurricane harvey. plus, be sure to keep it here and tune in to "squawk alley" tomorrow. becky quick will be sitting down with warren buffett. that is 11:00 a.m. eastern time on "squawk alley" on cnbc. we'll be right back.

meg whitman talking about why she didn't take the uber jovenlt whitman says the company has yet to deal with uncertainty over travis kalanick's role or come up with a new governing structure. two conditions she said were necessary in order for her to take the job joining us now, data collective managing partner and early uber investor, matthew occo and the "new york times" mike isaac. good morning to both of you. mike, as we continue to hear about this ceo search and i believe we have yet to hear from uber, a confirmation that he is going to be the next ceo it seems to me that maybe this board tension has shown a new phase. i mean if the board leaked that it was going to be dara, they come out with a letter saying hey he's going to be great i'm glad that kind of my rival

is on the board and weren't able to screw this process up i mean is this in danger at this point? >> i actually missed watching "game of thrones" over the weekend because i was too busy dealing with this this is actually better like i said, this is -- this process is totally been insane what i can tell you is that meg whitman was definitely in the running up until very close to the end on sunday when we finally were able to report that dara was the pick for them what you have seen a lot of now is sort of -- i would say face saving and backtracking by folks. it became clear earlier this week that -- or on i would say friday night, saturday morning that jeff immelt at ge was not going to be the ceo. and then later when it came down to dara, now people are positioning. okay, well, we couldn't decide on this or that. but i would say the -- be pretty

weary of what is coming out now. it's a lot of face saving basically. >> at what point do you look at even this ceo rollout, slow rollout i suppose, and the board's actions in it? and get really concerned about uber as an investment at a new level? >> yeah. i have to be clear that my day job is actually investing in deep tech companies that cover some of the other topics you talked about today like space-based as sthaets keep watch on north korea or predicting and preventing catastrophic floods or ai powered drones that help bring materials to stranded people so when i'm commenting on uber, i'm not a consumer investor by day job. i'm commenting as a lay person that being said, any kind of ceo

drama at this scale is bad for companies' value it's bad for company's morale. this is a very strong leader this is somebody who personally embodied the immigrant success story for many of us define what really makes america great and i think he will restore the confidence of the board. the employees and the investors. >> who do you think will win out here when you have this sort of unusual fight and lawsuit among fellow board members >> you know, when the unstoppable force meets the removable object, that's a little bit above my pay grade. more involvement to theological question you're asking me. but these are both brilliant and

accomplished people and groups of people who know that there's a lot to lose through conflict and i'm fairly confident that they will reach an accommodation and do what is best for the company and the employees and the investors as a whole >> uber's board drama is no doubt an extreme but board dynamics are so important to these privately held companies and i wonder how that's going to fit with dara coming out of a public company type of setup where the board, yes, they advise you can consult with them they're important. but they're not driving force behind the direction of these companies. i wonlder if there is something about uber being a public company scale but with private company board dynamics >> what he thooz do on the extreme delays is just get

ahoefld the board. say, look this is the leaks have to stop. the drama has to stop between us we have to end this lawsuit between benchmark and travis kalanick who is still on the board by the way and then we have to sort of make sure that travis is not agitating for his way back in or, you know, sort of for position of control in the company once things sort of settle down. i think there is confidence in his -- in dara's ability to do that at this point there's a reason you didn't see his name leak out there in the public and the press before they voted on him he has similar dynamics to uber as far as the economics are kernt. >> of course we'll continue to watch it i know you will as well. matthew and mike, thank you for joining us to day. >> thank you >> thanks for having us. >> when we come back,

catastroph catastrophic flooding continuing to paralyze south texas today. this is picture from dickenson, 30 miles from houston. we'll take you back to texas when we return

check out shares of united technologies and rockwell collins. they're both trading higher right now. a "wall street journal" report that united tech is nearing a deal to buy rockwell for more than $20 billion the companies, this report says are discussing a per share price for rockwell of $140 or less and that this agreement could be announced as soon as this weekend. shares of rockwell are currently trading around $129 a share right now. and we've been get smfg the headlines in some of the reports for just about a month and if you look at shares of both for the month of august, rockwell is

up more than 20% united technologies down about 1% right now both near session highs. each up about 1.5% on this report back over to you >> yeah, certainly morgan we've seen utx help the dow recover. >> this was speculated on. it was reported. i think that maybe the two key words in this incremental change is $140 a share or less. so that -- therefore, the market is not going to take it up to that possible bid. it was a $100 stock a little over a month ago i think the market likes the idea of this deal. it's a strong group. aerospace and defense already. the question is, you know, will the airlines push back >> are the manufacturers going to push back on andy trust i don't know how much overlap there is on parts? >> it's not as much overlap. i think it concentrates more power in a supplier like utx that can supply more of an airplane. >> what happens to jobs? i mean there are big government contracts up >> yeah. this is the kind of thing that president trump said, hey, if

you want to do these mergers, if you want to do deals, don't expect to cut american jobs in the process. we'll see how and whether president trump weighs in on the transaction. >> he had dialogue with utx in the past we'll see what happens there >> speaking with dialogue, the apple ceo tim cook expressing his frustration with the gridlock in washington speaking with our own reporter saying in lieu of government legislation, business leaders have a moral responsibility to help create jobs and grow the economy. here's another quote the reality is that government for long period of time has become less functional and it isn't working at the speed that it once was and so it does fall, i think, not just on business but on all other areas of society to step up. had is the sunt is the subject i cook's meeting that was in cincinnati and then iowa which raised eyebrows. he is campaigning? he is trying run for president

maybe he's just trying to continue this moral crusade that sikhs are on at a time when governments are inactive. >> i think this is one of the cases, mark zuckerberg led wait in this mid america tour, of course, apple and iowa and other places has call centers. they're setting up data centers. they're important geographic areas for apple. it reads like no mistake they're having breakfast in austin, texas. tim cook is talking about moral responsibility of apple. this is very different from apple of ten years ago under steve jobs he didn't deal in politics he didn't deal in philanthropy this is tim cook at a time when president trump's approval ratings are pretty low president trump had been critical of apple. he's talking about tim cook now, talking about government being infective. apple stepping up the role in the world. taking the offensive in a way that i think we haven't seen a lot of tech ceos do post election. >> taking the offensive, perhaps in, a defensive way.

>> i think it's important to remember that they run the empire that's renormous. so they have the ability to do more i think they feel as if the mission is bigger even than just kind of, you know, playing this business role in one country. >> certainly they were empowered after charlottesville when they spoke out and came together with sort of a strength in numbers group exodus from the white house counsel. i just wonder how much of this we'll see. ceo diplomacy, moral leadership and what they feel is the absence of that in washington. >> all right it is 11:30 on the east coast. that means the european markets are closing up seema mody back here with the european close good morning. >> in the move and global assets, it does suggest that north korea is starting to be treated as a real threat this wasn't any missile test it was the first missile test that crossed over japan. the first one since 2009 in response to the flight to safety the german dax off the lows but still seeing one of the worst days of the year

the outside reaction certainly part of the story. today they said the rising euro is almost certain to have an impact on exports and the trade surplus. perhaps alleviating tensions with the white house which has been trying to reduce the deficit with trading partners like germany meantime, take a look at the euro a big talker of the day up now up -- excuse me, trading at $120 against the u.s. dollar. and in term of where we saw the selling in terms of the european equities, selling in banks, that was a prevailing theme today commerce bank, deutsche bank among others down about 1 to 2%. the german ten year yield is falling at 1.3%. gold trading around the highest level of the year. that is a big benefit to the european gold miners like rand gold resources seeing a nice gain of more than 4% john, back to you. >> all right thank you. >> and now we'll send it to

headquarters sue herrera has a news update. >> good morning, jon here's what's happening at this hour after meeting with the german foreign minister this morning, secretary of state rex tillerson talked about the devastating floods in texas. >> we still make our home in texas. we have a lot of family and friends that have been directly impacted and also just millions and millions of texans are really, really suffering right now. so it's simply ask that all americans, keep them in your thoughts and prayers >> rescues continuing this morning in houston coast guard and military helicopters using a bridge on interstate 69 to drop off load after load of people escaping the rising floodwaters from there, the he whaevacuees transported to the houston convention center. voekz wag sen recalling 200,000 sa dans and wagons in the u.s. the fuel pumps can fail and cause the cars o suddenly stall.

that recall covers the cc from the years 2009 to 2016 and the passat from 2006 to 2010 you're up to date. this is the news update this hour hey gary, what'd you got here? this bad boy is a mobile trading desk so that i can take my trading platform wherever i go. you know that thinkorswim seamlessly syncs across all your devices, right? oh, so my custom studies will go with me? anywhere you want to go! the market's hot! sync your platform on any device with thinkorswim. only at td ameritrade

we're seeing some live pictures from our crew shot in texas. we're awaiting president trump's

arrival. he is set to land soon in corpus christi over the next hour or so he's there to visit, lend support to the victims of hurricane harvey, make sure they're getting the federal assistance that they need. may even go a second time on saturday as he suggested yesterday to either texas or louisiana. but as you can see, just people helping people, rescue missions galore across the city look at how high the water is. the make shift boats, private boats. rescue boats from the coast guard. and the local authorities as people continue to evacuate and the rain continues to fall in this region. >> and this is a story that is going to continue to play out for weeks. we're still in rescue phase now. you know, folks in houston area are going to continue to need help we heard earlier today politicians in the area calling for local businesses to help not just financially but also with

technical expertise, with planning this is such an unusual sort of tragedy and really natural disaster that water is going to take a long time to go anywhere >> yeah. could be as much as years whether it comes to the cleanup which we can't even ponder as we're still seeing this relentless downpour across houston and the surrounding areas. we'll keep an eye on it for you and continue to bring new footage as we shoot it we got our crews on the ground brian sullivan, contessa brewer. they'll continue to check in with them. we're also watching this market. it looked like it was going to be a down day. jitters over north korea have largely subsided in the first few hours of trade here. the nasdaq, as you can see, has gone positive. some of the big groups like technology and industrials are all leading this market. dow now up two points as well. we'll be right back on "squawk alley. i think that she's a very nice girl... you never got the brakes looked at? oh yeah. no.

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president trump gets his first chance to play comforter in chief following the devastation of harvey. see you then, mike >> melissa, thank you very much. we'll see new a few minutes. and for more on today'smarkets we're watching the indices claw their way back to the flat line.

they were set up in the wee hours for a 1% loss. they've been grinding higher ever since art cashan joins us. art, anything really to pin this little bit of come back on >> well, i it this was a combination of things. the dip on the opening found some support at 21675 and the 2430, that's a popular number in the s&p 500. and then people began to realize that unfortunately we don't have any real options here. so -- force. >> with regard to north korea? >> yeah. any action would be not immediate. so that brought the dip crowd in and they started going to safe havens began to unwind slightly as everybody realized that it's unlikely that something's going to happen immediately. and that pretty much brought us back there is even some hope that -- i don't want to call it a silver lining given the tragedy of what is going on in texas, but that there may be a little bit of a

bonus in the fact that everybody will want to get federal aid out to help these people as they desperately need and that could, in fact, open the door to cooperation on a budget and a few other things. you can get both parties working together they need to help these people and it will be foolish to act in a partisan way when this kind of help is needed >> yeah, even some talk that an aid package could be attached to the budget resolution or the debt ceiling increase. >> i'm sure we'll see that crafted together >> all right >> but back to north korea, there is so many known, unknowns to use an overused phrase. that seems like a lot of uncertainty for the market to process. why doesn't it feel like these selloffs and these jitters last very long and the market seems to have no fear about it >> well, it's not that they have no fear. but they don't believe that any

action is imminent i mean, i'm sure the president has asked his generals to prepare a plan but there is no quick preemptive strike that's going to work here they've got all -- >> parts of high kid owe, tokkan up and warned by authorities that seems like a pretty big escalation >> there is no question about it i think he doesn't want to push too hard he knows that ultimately if there is retaliation, it will be total suicide. you know, we used to have the process of mutually assured destruction. and he's kind of in that position now so i think for all of that, he's gambling and trying to maybe force them to a negotiatinginging table with a stroer

stronger position. very dangerous the last several mitt lz they set off, a couple of them zrinlt grat disintegrated in flight f you send one over hiokkaido and fall part, it could damage lots of things with just the falling pieces kind of a dangerous game but the belief here is that we're not going to see anything immediate. so while, you know, you start to nibble away and see if you buy some cheap stock >> art, am i reading correctly that the market seems to have continued to have this sort of pervasive optimism looking at north korea well maybe it's not that bad looking at the houston situation, perhaps this will get congress to be more bipartisan and actually get something done. despite the difficult things that we're actually running against, the market seems to continue to be pervasively optimistic is that your read? when is the last time we had a period like that >> i would call it hopeful rather than optimistic they've had on their christmas list is the trump agenda,

deregulation and lower taxes or tax reform if possible and maybe some physical restructuring. and every time that seems to look like it disappeared, back comes a little hope. again out of this terrible tragedy in houston there's a chance that cooperation will put them together and as michael said, if they're crafty about it, they'll get the whole thing into one package. so you'll either get a budget or you'll get the raise of the deficit or maybe a combination thereof. so they look at that and they say, you know, maybe this agenda is only in a coma. you know, it's going to awaken pretty soon and get done that's why they're nibbling away the other thing to remember is it's the week before labor day markets are very, very thin. so what you saw that brought us all the way back into plus territory was no stampede. it was mild nibbling in a very thin market has a big impact

>> all right, thank you very much appreciate it. meantime, catastrophic flooding continuing to paralyze southeast texas this morning tropical storm harvey now proving one of the most destructive storms in the nation's history thousands forced to evacuate local businesses are also stepping up to help including houston retail chain gallery furniture which opened two of the stores as emergency shelters joining us now on the phone, the chain's owner, jim macenvale known as mattress mack thank you for being on the phone. tell us what you've done with your stores. >> well, whethn the storm continued, people were trying to be rescued from our box trucks out. [ inaudible we have a store on the north freeway and ended up with 400 people that night. and our store in richmond, texas, which is west of houston. we have 350 people in there the

first night. now about 450. so we're providing shelter for people who need to he'd and sleep and remembering rate we have lots of sofas and beds and it's amazing how these people are holding on. >> yes, indeed if i understand, you have three stores in the houston area one that i believe is not open as a shelter it's near the galleria is that correct? >> yeah. the one near the galleria is a small 25 foot -- 25,000 foot square footprint the other two have restaurants in the stores. so it's easy to feed the folks and easy to spread out thousands of mattresses for the people to sleep on and couches and recliners. so it's been great for us to do to help out the community and the people are really rallying they've been through a lot of grief, anguish and stress. >> jim, i was wondering to follow up. other than those accommodation

considerations, was there a reason not to open that store because it's right by the wakewood church and, you know, however you might feel about his ministry, joel ostein is getting criticism on line from people that don't live in houston about not opening his facility i'm wondering if your facility which is about two miles from there would be accessible to use as a shelter if it had the right accommodations >> well, i -- i'm a big joel ostein fan i won't get into that i think he's terrific for the city these two facilities were perfect to use as shelt wherz hurricane katrina happened, we had 200 people there for two nice that were new orleans evacuees this isn't our first rodeo we got the people in here and trying to help them get jobs and housing. that's what they need to get back on their feet >> and if we heard you correctly, jim, you're now temporarily sheltering what, almost 1,000 people in the two stores >> yeah.

yes, and we have -- >> how are you -- >> national guard members of the west houston store as well >> so it's essentially -- >> i was wondering how you were getting supplies and food to these people inside the stores >> >> sunday was tough because of the restaurants and grocery stores in houston were closed due to the rainfall but then everything opened up yesterday we're dealing with the logic sticks of getting food and water there because we have great suppliers here in houston. >> how long do you expect to keep these people inside as we understand it, the rain is still bearing down on the city and in the surrounding areas and this continues to be an emergency. >> it continues to be an emergency. people are suffering we will stay the course as long as it takes. i figure some people will be here two or three days some people as long as a week. we have labor day week coming

and the main thing we're going to do is take care of these people forced out of their homes because of this horrific water and flooding and help take care of them. >> do you have internet service? we know you have phone service because you called in here. >> yeah, we have internet. >> jim, we wish you well >> thank you >> you're doing a good deed there, housing almost a thousand people inside of his two furniture stores as we continue to watch people, business, of course, governments all helping out to rescue people across texas that was jim mcingvale, owner of gallery furniture. "squk aly"ilbeigawle wl rht back live-stream your favorite sport

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and live sports on the go. included with xfinity tv. xfinity, the future of awesome. as stranded flood victims of hurricane harvey continue to battle rain, many have turned to social media next door is a free and private social network where many communities have been convening digitally. the ceo of nextdoor joins us now. good morning it's interesting, nextdoor, you have to prove that you actually live in a location to join that community. so i imagine, from what i see on twitter at least, people in houston are communicating quite a bit about safety, flood levels what have you seen on the network and have you ever seen anything like it >> well, we haven't seen anything like it and our heart really goes out to all of the people in houston that are experiencing this tragedy. but we feel like there is a

place for technology to be helpful and, in this case, neighbors are helping each other because the most resilient communities are the ones where people could communicate in some extreme cases, asking to be rescued, neighbors are using nextdoor to lean on each other and stay safe. >> what have you changed about your service or perhaps what have you learned about things that you're going to change or added a based upon the activity that you've seen over the past couple of days >> we started this company because we felt that there was a role for technology to play in bringing neighbors together we know that neighbors want to help each other and they can. and so the platform was built exactly for moments like this.

we are looking very carefully at everything that's going on in this case, we also have integrated lots of public agencies in the houston area, the office of emergency management, the harris county sheriff's department, the police department of houston. and they are actively posting as well so creating the dialogue not just between neighbors but between the public agencies working so hard to rescue citizens, that's a critical part of what's going on at nextdoor. >> we all read about and saw the picture of so many dramatic pictures across social media the one in particular of the nursing home halfway under water in dickinson, texas, the national guard came to rescue them after pictures were posted on social media. how much are you learning about the cooperation between people posting on social media and national guard using it as a tool to respond ala 911?

>> it's really humbling. what we see is in these times of crisis, the best kind of character comes out from neighbors. they are helping each other. in many cases, neighbors are putting themselves in jeopardy to help others in need and, of course, the first responders and all of the agents from the public agencies, this is what they do for a living every day so it's inspiring to see. >> we've got to leave it there thanks for joining us, ceo of nextdoor we'll be right back. ♪ 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.

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welcome to ""halftime" report north korea launched a missile over japan 18 hours ago. that's how japan's civil defense system reacted let's look at how the markets are reacting in the united states today basically flat with us for the hour today, joe terranova, jon najarian and pete najarian is live for us in minneapolis. let's get right to this market conundrum. we were on the air yesterday night when thi