welcome back markets lower with the financials the worst performing sector check out some of the big movers out. there the financials again, stocks to watch. among the laggers, xl group, now back down to "squawk on the street" for the start of "squawk alley. back to you. >> all right thank you very much, dominick. good morning welcome to "squawk alley." we're at post nine this morning. busy day ahead of a busy week of news we're a few minutes away from jeff sessions holding a briefinging to address the deferred action for childhood arrivals program or daca a number of ceos to wall street coming out in support of daca in recent days. as the dow trades close to session lows, down almost 175 points blue chips are down in the worst tumble for stocks since about august 17th.

as we await sessions, let's bring in elevation parters in roger mcnamee this morning, sar sar sarah fagen and elan muy let's set the table for what we expect sessions to say >> the white house wants to end this program and it looks like there will be a six-month delay before it actually phased out. the big question that sessions will have to answer is exactly what will the end of the program look like? is it a shutdown of daca for all the people would are currently receiving those protections and benefits or is there some sort of phaseout that could allow people some perhaps grace period before they see those benefits run out and before they can face deportation. >> quickly here, sarah, we expect the ag in a moment, people turning their attention to what we're expecting to be a six month period for congress to react. with now a number of new obstacles in their way

what might their calendar look like >> the calendar is getting more crowded and certainly with other issues before them this is not a good legislative move by trump in my view he should be doing everything to focus on tax reform. he should not be punting things to congress that get in the way of tax reform. and while this is something that needs to be dealt with, it's an important issue. timing wise, this is ill thought through. >> elan, isn't part of the issue that there's this deadline because of the attorneys general that want to file suit i know there is all this focus on the humanitarian issues and we have the responses from the ceos in silicon valley but ultimately this could go down in court if he does nothing, right it seems like daca could be doomed regardless. >> you know, you're exactly right. >> here is the ag. >> good morning. i'm here today to announce that the program known as daca that

was created under the obama administration is being resinlded. it essentially provided a legal status for recipients for a renewable two year term, work authorization, and other benefits including participation in the social security program to 800,000 mostly adult illegal aliens the policy was implemented unilaterally to great controversy and legal concern after congress rejected legislative proposals to extend similar benefits to -- on numerous occasions to this same group of illegal aliens. in other words, the executive branch through daca deliberately sought to achieve what the legislative branch specifically refused to authorize on multiple occasions. such an open ended circumvention of immigration laws was an

unconstitutional exercise of authority by the executive branch this contributed to a surge of miners at the southern border that yielded terrible humanitarian consequences. it also denied jobs to hundreds of thousands of americans by allowing those same illegal aliens to take those jobs. we inherited from our founders and have advanced an unsurpassed legal heritage which is a foundation of our freedom, our safety, and our prosperity as attorney general, it is my duty to ensure that laws of the united states are enforced and that the constitutional order is upheld no greater good for the overall health and well-being of our republic than preserving and strengthening the impartial rule of law societies where the rule of law

is treasured are societies that tend to flourish and succeed societies where the rule of law is subject to political and personal biases become societies afflicted by corruption, poverty, and human suffering to have a lawful system of immigration that serves the national interests we cannot admit everyone who would like to come here. it's just that simple. there is an open -- that would be an open borders policy and american people have rightly rejected that. therefore, the nation must set and enforce a limit on how many immigrants we admit each year and that means all cannot be accepted this does not mean they're bad people or that our nation disrespects or demeans them in any way. it means we are properly enforcing our laws as congress has passed them. it is with these principles and

duties in mind and in light of imminent litigation that we reviewed the obama administration's daca policy our collective wisdom is that the policy is vulnerable to the same legal and constitutional challenges that the courts recognize with respect to the daca program which was enjoined on a nationwide basis in a decision that was affirmed by the fifth circuit court of appeals the fifth circuit specifically concluded that daca had not been implemented in a fashion that allowed sufficient discretion and that daca was foreclosed by congress' careful plan in other words, the immigration law that congress passed foreclosed this possibility of daca in other words, it was inconsistent with the constitution's separation of powers that decision was affirmed by the supreme court on an

equally -- on divided basis. if we were to keep the obama administration's executive amnesty policy, the likeliest outcome is that it would, too, be enjoined justice as was daca the department of justice advised the president and department of home land security that the department of homeland security should begin an orderly lawful wind down including the cancellation of the memo that authorized this program. acting secretary duke has chosen appropriately to initiate a wind down process this will enable the department of homeland security to conduct an orderly change and fulfill the desire of this administration to create a time period for congress to act should it so choose. we firmly believe this is the responsible path simply put, if we are to further

our goal of strengthening the constitutional order and the rule of law in america, the department of justice cannot defend this overreach. george washington university law professor jonathan turley in testimony before the house judiciary committee was clear about the enormous constitutional infirm tis raised by this action he said, "in ordering this blanket exception, president obama was nullifying part of a law that he simply disagreed with if a president can claim sweeping discretion to suspend key federal laws, the entire legislative process becomes little more than a pretense. the circumvention of the legislative process not only undermines the authority of this

branch, but destabilizes the system as a whole. so this is not a little matter ending the previous administration's disrespect for the legislative process is an important first step all immigration policies should serve the interest of the people of the united states, lawful immigrant and native bornalike congress should carefully and thoughtfully pursue the types rev forms that are right for the american people. our nation is kpricompromised of good and decent people who want the government leaders to fulfill promises and advance an immigration policy that serves the national interest. we're people of compassion and we are people of law but there is nothing compassionate about the failure to enforce immigration laws. enforcing the law saves lives. protects communities and taxpayers and prevents human

suffering. failure to enforce the laws in the past has put our nation at risk of crime, violence, and terrorism. the compassionate thing to do is end the lawlessness, enforce our laws and if congress chooses to make changes to those laws, to do so through the process set forth by our founders. in a way that advances the interests of the american people that is what the president has promised to do and he has delivered to the american people. under president trump's leadership, this administration has made great progress in the last few months toward establishing a lawful and constitutional immigration system this makes us safer and more secure it will further economically the lives of millions who are struggling and it will enable our country to more effectively

teach new immigrants about our system of government and to assimilate them to the cultural understandings that support the substantial progress in reducing illegal immigration and our borders seen in recent months is due to the leadership of president trump and his inspired immigration officers but the problem is not yet solved and without more action, we could see illegality rise again rather than be eliminated. as a candidate and now in office president trump offered specific ideas and legislative solutions that will protect american workers, increase wages and salaries, defend the national security and ensure the public safety and increase the general well-being of the american people he has worked closely with many

members of congress including in the introduction of the rays act which would produce enormous benefits for our country and this is how our democratic process works. there are many powerful interest groups in the country and every one of them has a constitutional right to advocate their views and represent whom ever they choose but the department of justice does not represent any narrow interest or any subset of the american people. we represent all of the american people and protect the integrity of our constitution, that is our charge we at the department of justice are proud and honored to work to advance this vision for america and to do our best each day to ensure the safety and security of the american people thank you very much. thank you. >> attorney general jeff sessions announcing the end of

the daca program, deferred action for childhood arrivals. it was as expected it will be a six month wind down period he gives congress time to act if they so choose to change immigration laws to allow for childhood arrivals to actually stay let's go back to our panel here. let me get to elan seems to me what this does is ends the threat of legislation from those attorneys general and now puts the ball in the court of congress. >> that's right. so the reason why this is all coming to a head today is because attorneys general led by the state of texas had threatened to sue president trump and the administration if he did not make a move by today. however, the attorneys general of washington state and new york have also said that they will sue if president trump does make a move so we don't see the legal action as ending just yet in terms of exactly how daca will be phased out, it's important to note that according to the department of homeland security, those who are currently receiving benefits

under that program, they will continue to be protected until their permits expire the permits typically last about two years. so they will be able to enjoy the benefits for the remainder of the two years anyone who is already submitted a request for renewal, those requests for renewal will be considered but for those people who have not submitted a request or not submitted a request for renewal for protection under this program for those people, the benefits of daca will be ending. >> and just to clarify for people, i think a lot of people are focused that it is probably a lot of children. but actually a lot of the individuals could be 35, 36, 37 years old at this program. when this program was started, you could be as old as 31 to apply for an exemption and so now as we see the years pass, you have -- that's why we have so many companies saying we have a lot of employees that are part of daca >> that's right. the requirements for daca were that you were under the age of 16 when you arrived in this

country. so by the time that you actually applied for these protections or the benefits, you may well be past the age of 16 you may be an adult. >> roger mcnamee, turning to the likely reaction from silicon valley, the news is as expected. but the language that attorney general used certainly struck me as not particularly trying to strike a bipartisan tone he talked about the term illegal alien and said we cannot admit everyone who would like to come here of course, this program is about people who are already here. what struck you about the tone of the attorney general? how do you expect ceos who have already come out on the other side of this to respond now? >> you know, i think that it is ironic that the attorney general of the administration has done more to undermine the rule of law than i think any presidential administration before it would be out there citing the rule of laws, the

argument for doing this. this thing was going through the courts they didn't need to do anything. and i look at this and view it as either this is hostage taking in an attempt to trade this for funding for the wall or something else or it's just mean spirited because you look at this from the perspective of, again, these are people who are american in all but the last legal requirement. they grew up here. they work here they went to school here they paid taxes. and, you know, whether it's apple computer or microsoft, google, doesn't matter, all of them have dreamers as employees. and, you know, if you know dreamers, these are people who are the hardest working, most loyal people you could possibly have the notion that we want to chase them away is just so terrible for the economy on the face of it but what it really does is it undoes a promise it's yet another thing that trump administration is doing that i think -- >> roger -- >> that makes america weaker

we don't follow-through on our promises >> what is tech going to do about it it's one thing to write a letter >> i don't know. i don't know the answer. for the next two years these companies are going to do everything in their power to protect the employees and i think to argue for the logical answer here which is there are 800,000 people here who are overwhelmingly either in school or employed and paying taxes and would are real contributors to society they're not taking jobs away from americans our entire economy is based on having lots of different kinds of people in it. and, you know, there are some jobs that immigrants are literally the only people -- how are we going to repair houston without the undocumented people who make up maybe half of the labor force and construction in houston? i think the tech ceos are going to fight for this because it's the right thing to do and secondly, you know, again, if we're trying to have a stock market, we need to have a real rule of law. we need to actually have contracts observed

>> roger, but one of the things that jeff sessions did say is he talked about the huge surge of children that did come to the border under president obama when it became clear that it was easier for children to stay. it's what lead to president obama being labelled deporter in chief by fusion because he didn't do so many -- how do you reconcile? can you put aside the words that jeff session used. i know a lot of people are going to find offensive. but the idea of rule of law this is done by executive order because it couldn't get through congress how do you reconcile that? >> i think that the real issue here -- let's remember, the reason people are showing up on the border is because of violence taking place in central america. you know, they weren't there because they thought they were going to be able to somehow qualify for daca >> there were many reasons they came to the border >> let us be fair. there was a lot of violence going on in central america. >> there still is. >> and that was coincidental

that was not related i think it's super important when you look at these things to recognize that daca is a separate case. and trying to conflate these things are convenient. >> i agree with that >> but these things are not the same thing dreamers are a separate set of people they're part of our economy. and as americans, what do we stand for? if we do not stand for our word and -- >> roger, hold on. we want to tell people what ibm tweeted out. they believe dreamers made a positive contribution to our company and economy and we support bipartisan legislation in congress to allow them to remain in the united states. sarah, that's where attorney general sessions is trying to get them to go, trying to get congress to actually do something about it what are the chances of that >> that's right. well, they are really backed up as you know, michelle. and there are many pressing issues relative to the economy this being one of them it seems unlikely this congress is going to be able to sol of this in six months based on the track record that we see

but there were two issues that we heard from the attorney general. one is the legal argument. and what he said legally is probably true. that the president acted unilaterally and it's not constitutional and congress needs to act but then there is the whole -- we'll see what the courts say. most constitutional scholars think that but -- >> correct the president sen tigis entitle executive order. >> politically speaking, this issue you raised from ibm this is first of many major u.s. corporations that put out a statement like this. and politically, it is going to be another issue where the president and the administration are on the wrong side of the broad public and the political problems for this president keep stacking up. and i -- again, i go back to what i said earlier in the program which is the timing of this was really ill thought through. and while this is important and perhaps he felt that he needed

to act because of republicans attorney generals. when i was in the white house, we spoke to the folks and able to coordinate issues like this and had they tried, they probably could have. you know, so the whole thing to me, the way that this is staged rolled out, the timing of it, none of it makes any sense politically, policy wise whatsoever >> and let me just add too -- >> sarah, the point is well taken. we're going to watch the degree to which congress can handle this logistically and whether there is some consensus within congress through the influence of companies like ibm and big tech sarah, elan, roger, stay right there we want to talk uber with you guys this morning. today is day one for newly minted uber ceo. we're outside uber headquarters this morning >> hey, carl that's right uber employees are coming back to work here after the long weekend. and they're arriving to a new ceo. as you said, carl, he officials

takes the reigns to day. we've been waiting for him to enter. perhaps he got an early start or took a different entrance given the publicity surrounding the ceo search and the eventual selection. now we talked about that search. we talked about all of the challenges that he faces today day one in this new position, there is federal investigations, legal battles, fixing corporate culture and dealing with former ceo and founder travis kalanick. but in terms of what he brings to the table, a the love folks in the tech space are very excited he is coming in to take this position. at expedia, he was a deal maker. he brought travelocity and home away into the expedia fold though he is coming from seattle, he has an extensive network in silicon valley. take a look at his family as an example. this is going to be useful he has a lot of positions to fill at uber but check out the family he has a brother who is md at the boutique investment bank

that runs sun valley his cousins, they were early investors in some of the biggest tech names out here like facebook, air b & b and uber itself the other relatives that you see here have equally impressive resumes. as for uber's troubled corporate culture, dara comes in with a 93% rating on blackstore he was here meeting employees for the first time he told him i'm not going to bs you and i ask you to not bs me >> a quick comment on darrah, does he essentially have the wind at his back going in or not? >> i hope so i mean i think this is a great moment in time he has enough to go in and deal with the legal problems first. i would try to get the google suit settled, the waymo suit i think that is almost -- the potential harm there is to so

great. go into the various government entities, solve those problems and i think he has enough cash on the balance sheet that if can you take the legal risk off the table, that he can get the thing to something that feels like profitability and that would be a game changer again, it's going to require a different strategy he has to be much, much more disciplined than his predecessors were and he thohaso slow the growth down he has enough scale that if he does that he has a real business when he's done i think there is a ton of challenges but it's really worth going for. >> yeah. a lot of opportunity imbedded in the challenges as well roger, thank you so much for covering so much ground with us today. roger mcnamee and sarah and elan as well. dow down 177 we're going to watch the action trading today. we have the ten year below 209. >> so interesting to watch that ten year, right? once again, we're back to all summer long and after months you could have actually if you had bought when the yield was at,

you know, 2.2 and then you sell and it's 2.1, you could have made money and over again. that is having an impact on the banks today. you keep waiting for that yield curve to steepen and it just never happens. and so the banks end up lagging. >> yeah. enterprise tech stocks really taking it on the chin so far this morning you have qualcomm down nearly 3% after an unfavorable ruling in korea on a legal fight they continue and hp enterprise, box, cisco down more than 1.5%. so as we see the dow down more than the nasdaq, we also see big tech and enterprise tech down the most. >> yeah. it has been a day with tech and financials being the laggers and then really just reversal of harvey trades on the energy front, some retail on the upside >> is this north korea or is it not? is north korean excuse we haven't seen much reaction in the past to north korea?

>> people are going decline premarket that coincided with the president's tweet about selling some advanced military weapons to south korea so north korea is clearly on people's minds we'll get more "squawk alley" coming up. dow is down 172. don't go away. where the heart beats warm and true, that's texas. where we always welcome you, that's texas. where we always find a way, that's texas. ♪

dow is off by 174 points we see the ten year yield rally going on so 2.09 when it comes to the ten year yield you can seat s&p 500 is off by .5% you see oil higher by more than 3% $1.59 for wti. part of the reason we're seeing the selloff in stocks and a rally in treasuries because of what is happening with north korea. president trump and putin and angela merkel condemning north korea's latest nuclear test as tensions continue to rise all over the world we have the latest in south

korea. sherry >> good morning. south korean president is flying out to russia tomorrow for bilateral talks with his russian and japanese counterparts. i think it is a very busy day diplomatically at least for the south korean leader trying to deal with north korea, a different north korea this time around certainly scrambling for a better solution here in the meantime, we got another tweet from u.s. president donald trump. we buy a substantially increased amount of highly sophisticated military equipment from the united states. this is interesting. this is actually a third as you mention of a potential arms deal at least with the south korea coming from the trump administration at least over the last four to five days or so interesting thing here is that south korea's presidential office is saying no such deal.

and it also added that it was just understood it to be washington's expression of support for south korea's defense readiness by supplying this state of the art weapons as well as technology so again, south korea and the u.s. not exactly on the same page and this sort of reminds me of that interview where u.s. president trump said that south korea should foot the bill for this anti-missile defense system called thaad in the meantime, we have north korea's foreign ministry's comment out just over the last hour or so saying that it will be dealing with -- it will be reacting, i should say, in its own style as the u.n. security council countries are trying to find a sanctions package in order to sanction north korea further in the wake of its latest nuclear test guys, back to you. >> all right thank you very much, sherry.

as we were saying earlier, part of the reaction to the stock market today because of north korea as we see weakness we also had two weeks of gains so maybe there is an excuse for selling going on here. we're seeing all kinds of implications when it comes to the financials we see that rally in treasuries. >> not to mention the reversal of the energy trades today on a week we're going to get a ton of fed speak that's later on today. so maybe we get color that affects the way the market views the trajectory of rate hikes we'll find out could be worth noting also precious metals higher which tends to be the sort of trade you see when people are getting a little nervous about geopolitical things. >> gold at $1441 is that one year high that we touched last week people look for safe havens. in fact, art cashen talking about the market's response. he says the play in the safe havens reflects not so much the ideas that the two sides are going to face off in north korea in a dramatic way but that the

easier flow of the weapons and materials is what people are worried about. >> the other thing, too, is earnings season is basically over we have a little vacuum in terms of catalyst. so market participants tend to look for other things to either act on this is also, by the way, the first day everybody's back, right? how many people were on vacation on wall street over the last week i mean we saw it in our own staff. so this is the first time where you see in weeks and maybe full-court press at every single wall street firm in term of what kind of, you know, strategy they're going to take right now. >> yeah. a lot to consider. and we are still keeping a close eye on the aftermath of hurricane harvey as residents in southeast texas continue cleanup efforts. let's get to scott cohen who is there in houston scott? >> hi, john. if there is one certainty of hurricane hits the gulf coast it's going to intersecretary with a love chemicals. what brought that home is the situation we followed over the

last week at the chemical plant in crosby, texas they got the last of the volatile chemicals that were keeping people out of their home burned over the weekend. they sent fire to the remaining trailers yesterday morning ended that 1.5 mile evacuation zone and the company now is promising to make everyone whole >> when you talk to people and understand the impact that this has had on their families, on pets, it's heartwrenching. >> heartwrenching and potentially costly to arkema, a unit of a french company who spun off years ago from the petroleum giant total. that obviously is an active chemical plant but throughout this area there are also lots of sites like the one behind me about a couple hundred yard back there is a super fund site, the former brio chemical site. 58 acres and people are watching that very closely there are had 41 epa super

funnelfund sites throughout the harvey storm zoevenlt ane and the epa letting everybody know they're watching that situation carefully and they're on the case >> we've been working on all of the important issues since before land fall up to the day and we have over 200 people working in this -- in the south texas area from corpus christi to port arthur orange on the response >> so how do those sites do? well, we know according to the epa, 28 of the 41 appear to have come through the storm okay. they're still checking the remaining 13 some of them still have some floodwaters to the point where they may have to put divers in the water and they promise to update later today and monitoringing on going guys >> wow having to go diving near chemicals, great thanks, scott cohn

for more on harvey's cleanup, the ultimate insurance impact weeshgs joined by wayne peacock. he's among the biggest ensurers of homes and autos in texas. >> great to be with you. >> for viewers that may not be familiar with uass, you service, you provide services, all kinds of financial services to membersst military and former members of the military. you're heck head quartered in san an tone yoechlt how are all your employees is everybody okay? >> everyone is accounted for and those impacted, our team at usaa is working to get them back on their feet just as we are with our many military members who we serve at usaa. >> you are the president of the property and casualty insurance group. it seems like autos are turning out to be the biggest issue, correct, because homes rrnt generally covered by private flood insurance if they have flood insurance covered about it

federal government. >> we have about a million of our members who are in the path of the storm and we have seen a notice of claims from about 40,000 of our members so far and about a third of those have been auto claims >> are you surprised at the levels considering what you had heard about the storm? i think back to hurricane andrew in florida when many of the insurers in that state realized they were underpricing risk and felt in the future they need to raise prices how is this modelling out compared to what you had expected >> this is a different storm think about hurricane harvey as almost three storms, right snt land fall impact, the wind implications all the way up the i-35 corridor and then obviously the 1,000 year flood event in houston. so it is normal pattern of claims being filed has been a little bit elongated as folks are still trying to get in and assess the damage in houston >> wayne, tell me, what are you

going to do to try to assess how risk might be different going forward. are you already viewing this as a one off event or do you have people who are going out trying to assess? has our calculation of floods shifted some what? >> so we are absolutely focused on serving each one of our members right now. while we're doing that, assessing the scope of damage against our models and at usaa, we're constantly looking how to update the models and project forward. >> conventional wisdom is they can provide flood insurance because if they didn't, it would be too expensive when it come to the private sector is that a correct way to think about it or if the private sector had been allowed to actually work since 1968 when they started the flood insurance program, would we see a different outcome today? >> i don't know about that,

michelle but what we do know is we're underpricing flood shirns in the national program today i think post harvey, it is a great opportunity for us to kind of reconvene and look at how we might modernize the program. we could get them the funding and get them back on feet as quickly as possible. >> wayne, we're now paying attention to irma where the gusts up to 220 miles an hour. it's about the strongest five storm can you have in fact, they call it a 5 plus plus now and people are going to start trying to draw lines between the ferocity of harvey and irma. do the models suggest this season is a one off on the strength of the storms or are there trends that suggest the warmer waters are due to something larger than that >> i think early reports from industry sources show this might be a above average storm season. it's still early obviously just the first week of

september. and so i think, you know rg we'll be able to tell this at the end of the storm season as to exactly what happened obviously, the rain event from harvey was very significant. but the size and wind speed if irma much more significant, at least as we assess it here this morning. so our teams are obviously working on recovery for harvey but we're also prepared and preparing to be able to serve our members in florida or anywhere else up the east or gulf coast as we see more clearly irma's potential impact. >> yeah. we're going to be watching it. 220 mile-per-hour winds sets a lot of potential damage. wayne, thank you so much wayne peacock. good to have you >> thanks, michelle. >> let's get to seema mody and the european close >> investors trying to assess the north korean risk. take a look at europe. basically in mixed day of trade. some standouts specifically in the uk moving on, here we go. european equities have been favored by foreign investors with the broader european growth

story improving and the populous threat receding. sbout far this year, european stock index is up 4% and that is due in part to the stronger euro. the individual market performance a bit more notable it is up 13% germany up 6%. france up 5% in 2017 traders say this week's monetary policy meeting which kicks off tomorrow, the announcement on thursday could be the big driver mario draggy expected to address the stronger euro as inflation which is currently at 1.5%is well below the ecb's target of 2% so they say this morning 10% precious in the currency will lead to a 30 basis point fall in inflation. today we're looking at the euro. in fact, down a bit against the dollar germany's federal election has taken a backseat to monetary policy, sunday's debate got attention where the chancellor was grilled on immigration and the refugee policy

lastly two stocks in focus share of schneider electric and they take over control of british engineering software group aviva. that stock up is fractionally on the day. take a look at selectis. it's a biotech company in france the fda put a hold on one of the cancer drug trials back to you guys. >> seema, thank you very much. when we return, much more on the president's decision to wind down daca and silicon valley's reaction plus the future of uber under the new ceo. we'll discuss that where to get in... where to get out. if only the signs were as obvious when you trade. fidelity's active trader pro can help you find smarter entry and exit points and can help protect your potential profits. fidelity -- where smarter investors will always be. and her new mobile wedding business.tte at first, getting paid was tough... until she got quickbooks. now she sends invoices, sees when they've been viewed

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good morning once again, everybody. i'm sue herrera. here is your update. a fire forcing japan airlines flight to make an emergency landing at tokyo's airport the left engines of the flight 6 bound for new york caught fire right after takeoff. the eagle creek fire consumed more than 4800 acres the fire appears to be intentionally set and a suspect has been identified. full service is resumed on commuter rail lines into new york's penn station following a two month summer repair project. officials were worried that repairs could create a bottle neck into the nation's busiest rail hub but those fears were overflown

and beyonce, blake shelton and oprah winfrey will headline a telethon to benefit hurricane harvey victims it will be simulcast on abc, cbs, nbc, fox and cmt. it will be live on september 12th and on tape delay at 8:00 p.m. on the west coast you're up to date. back downtown to "squawk alley." jon, over to you >> thank you, sue. the trump administration meanwhile initiating a orderly wind down of the deferred action for childhood arrivals programs known as daca. u.s. attorney general jeff sessions holding a briefing earlier this hour. take a listen. >> i'm here to announce that daca is being recinded >> joining us now kara swisher of recode. even since the attorney general

took the podium there, we have seen the ceo of google tweeting, advocating for congressional action there are lots of ceos across tech, tim cook as well, tweeting, sending letters, advocating at least the policy behind daca. does this move now to congress and does tech have the kind of clout to actually get something done >> it has the money and the action i don't know if you saw the microsoft response they say working with congress getting this passed. that is in the case to protect workers. once again, tech is -- shouldn't be surprised that this is the kind of stuff out of the trump administration he's been saying he was going to do this all along. i think in this case they keep pushing these leaders to really stand up

so i think you'll see a lot of action on this and pressure and money put to bear on getting something passed by congress >> kara, is the calculus changing among silicon valley executives just a few weeks ago it was engagement with the president's staying on the councils. we saw the shift after shar lots shil what is the approach going to be now? >> money you saw we did large piece on reid hoffman today, a billionaire. he's going to be spending billions to not just sort of push back the initiatives by the trump administration, but also work across bipartisan lines he's funding republicans as with as democrats although he is more of a democratically aligned. so i think you're going to see a lot more outspokenness in terms of putting money and power behind initiatives to overturn a lot of this stuff and to get people in office that are more in line with their points of view which would be more pro immigration, more organized

social justice and more organized toward free trade and things like that >> we interviewed the head of forward.us last week on power lunch. he seemed to conclude as well that it really did come down to congress if you wanted anything permanent. anything done under executive order, as we see, can be undone by the next executive who comes in >> yeah, absolutely. come on this is such a cynical move they're using that as an excuse. that's what they're going to do and you didn't see president trump announcing this. he put it off to attorney general sessions and so, you know, this is -- they're just using that as an excuse now he wanted to recind this and now they're putting it in congress's hands. i don't think -- i think it's a question of how you feel about immigrants in this country and that's really -- the main thing is the main thing which is how do we deal with immigration in this country and there's one side that has one opinion and there's another side that has another and we have so sort it out. congress will be the one to do that if they can function. they obviously haven't been able to do much of anything over the

past couple of months. and so we'll see if they have the political wherewithal to get something in place that is not -- that doesn't impact so many of these wonderful kid. i met a lot of them. they're amazing kids that we need in this country, silicon valley needs, that our entire country needs to -- >> when you say "kids," how old are you talking about -- >> i've met -- >> that i have got to be in their 20s, right, if they're employees? >> i met one young woman at a group called college track here in silicon valley, which is a charity backed by lorraine jobs powell and i think it was just amazing. this woman had gone through high school, she had been here -- come here as a young woman, she had become -- she had been doing social work, she had gone to college, she had been the first person in her family to go to college. she's supporting a great deal of people she's one of these people, just exactly the kind of person you want to here, really working hard and trying her best to be a

great citizen, a great tax-paying citizen and you know, most of these kids, who are in this program -- and they are older now and they're in the workforce, just really have a real commitment to america and a commitment to making it a better country and you know, having this happen to them is, you know, a real slap in the face and i do know a lot of silicon valley people have been backing these programs it's not just to get workers i think that's another meme that goes on, they only want cheap workers. a lot of these kids are highly trained and they're fulfilling important roles that we need and there's plenty of jobs to go around in these areas that they're training in. >> but kara, as big tech, you know, exercises their voice on this, though, won't they have to have a response to at least the way sessions frames this, right? the department of justice cannot defend this executive overreach? obama was simply fighting with laws that he personally disagreed with they'll have to answer to some of that, right >> i guess if you want to get into that.

but they could do the travel ban. come on, this is just -- this is politics let's not pretend that that's not what this is i think the question is, can we create a great program that keeps this in place and brings innovative, young people to our country, which it's been doing, i don't know, close to 300 years. this is what our country's about. and so we need people from all over the world to come to this country and create jobs. you know, i think the reason you got such a strong response from microsoft is elon musk is an immigrant. these are some of the greatest job creators in our industry so i don't see why it's the most difficult thing. and they're politicizing it. >> you can certainly go on -- >> yeah. >> go down the lain. quite a few immigrant founders and ceos in silicon valley it's a very closely felt issue for many of them kara, thanks for joining us today. >> thanks a lot. >> we are getting some breaking news from boeing in response to

utx's rodwell collins. >> no surprise that boeing is skeptical that this deal makes sense for not only boeing but for other airplane makers and for the airline or aerospace industry overall in announcing just a the few minutes ago that it is skeptical about the merits of this acquisition of rockwell collins by united technologies boeing says, should we determine that this deal is inconsistent with those interests, the interests being how the airline industry or the aerospace industry is remaining competitive. should we find that it's inconsistent with those interests, we would intend to exercise our contractual rights and pursue the appropriate regulatory options to protect our interests. keep in mind that just an hour and a half ago, david faber was talking with greg hayes, the ceo of united technologies, and he said, point-blank, we do not see anything that will stop this transaction. so, guys, what we're looking at right now is boeing saying, you know what, with we disagree with that, and potentially, we could

see boeing going to regulators saying, stop this deal from going through. unclear whether or not they'll actually do that or if it would be effective, but we expected boeing to have strong statements on this deal, because it is getting into the i haveavionics business and that's what we're seeing here. >> phil, thank you interestingly, more than half of the dow's drop today is goldman, boeing, and utx. we're back after this with art cashin on today's markets. don't go away. not rebalancing your portfolio. pursuing your passion, not reacting to market downturns.

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i'm scott wapner coming up today on the "halftime report," the september playbook as we start this historically bad month with a bad drop for stocks in the wake of another weekend disaster at the box office, an entertainment giant gets an upgrade to buy it is our call of the day today. we're also watching a category 5 hurricane and the commodities. it is likely to move, as that storm closes in on florida "halftime report" starts top of the hour, which, carl, is less than three minutes away. see you in a bit >> thanks, scott markets in a sell-off mode art cashin joins us here on post nine good morning to you. you made the point earlier this morning that the play in the safe haven shows concern about an accident. what do you mean >> well, i don't think anybody thinks that anyone would rationally start a military situation between north korea and the u.s., et cetera. but if they keep testing the missiles, the markets are concerned that they fly over a

populated area and come apart. you know, drop a piece of a missile into an apartment building or something somewhere, raise the ante in this greatly that's a serious concern you can see that in the safe haven plays. they're not quite as strong as they were a little bit earlier but they're still there. and as scott just said, there is some minor concern about hurricane irma and whether it will move into the gulf. you're already seeing orange juice futures and cotton and a variety of other things start to move up. so you've got that out there also >> first day back from what is traditionally the big week of vacation the volume that we see today or the action that we see today, do we believe it more, because all of the major players are back on wall street? >> well, you could, but the day after labor day is historically

a great day for fakeouts the high for the market in 1929 came the day after labor day >> that's a good data point. >> and right after that, things started to deteriorate >> so not necessarily, then? not meaningful >> don't put it in the book quite yet. >> okay. >> let us know when we put it in the book >> keep an eye on the support band in the s&p. 24.61 to 24.64 if that breaks, we could have trouble. >> you talked about concerns over north korea, some other things the dow still just down barely over half a percent. any consolation in that fact and what levels should we watch. you were just giving some levels for the rest of the day. >> i would watch that support band they just spoke about what you're going to see play out here is what's going to happen in congress at the same time one of the reasons that you're still near a high is there is this eternal belief that there's

some hope for the agenda, somewhere, that we're going to move the agenda. and we're going tom find out pretty fast. if they don't want to raise there debt ceiling, it's going to be a bit of a problem >> art, thank you for that art cashin here at the post nine michelle, thank you for coming in >> pleasure being here >> the news flow all week long is going to be fast and furious. let's get back to the judge and the half rnch and welcome to the "halftime report." i'm scott wapner our top trade this hour, your september playbook with a notoriously rough month for stocks, will it hold true to form or surprise investors with another leg to this rally? with us for the hour today, joe terranova, stephanie link, jim lebenthal, josh brown. we do begin today with what else but the markets. stocks under pressure this hour. america heading back to work, back to school, and back to trying to figure out how long nighty bull market is going to last so joe, we come into september on friday.