you've never even heard of a huge week next week in houston. we're coming home. we're watching the markets the s&p was positive for a second it's back lower. the nasdaq is still positive >> thanks for watching "power lunch. >> the "closing bell" starts right now. ♪ live from the new york stock exchange, this is the "closing bell." i'm kelly evans. >> i'm wilfred frost in for bill griffeth. >> the dow down 390 points at the low of the session we're covering the story from all angles and how it's impacting business around the globe. >> we're in beijing with china's reaction, in canada, and jackie is in wheatland, pennsylvania, reporting on steel in america. >> we begin with bob pisani, right here at the new york stock exchange, reporting on how the markets are taking this all on

day two. bob? >> tariff fallout is continuing. we're still seeing big international stocks, down on concerns about trade wars. small cap, the russell 2000 holding up well. they're mostly domestic. boeing biggest stock, down $6, almost 2%. that's 45 points on the dow jones industrial average another big industrial, caterpillar down almost four points that's another 30 points, down 2.5% elsewhere we're seeing some of the more defensive names do a little better, like johnson & johns johnson. they haven't done very well. one day they're outperforming. by and large, the consumer staples, they've been laggards along with the rest of the group. let's remind everyone what's going on there's been an increase in risk in the last few days yes, mr. powell and the possibility of the fed being more aggressive is still the number one issue for the stock market overall now we have new economic risk, tariffs, and the possibility of trade wars is being taken very seriously with the markets

white house turmoil, reports gary cohn is unhappy, may be leaving. the markets care very much with a person like gary cohn. and in japan, mr. kuroda talking about removing some liquidity. the dow jones industrial average and s&p 500, we do have a real weakness in mcdonald's that's really the problem the dow's had. there was an analyst comment from rbc that industry fundamentals might be deteriorating and the dollar menu may not be as successful as they hoped mcdonald's a big problem for the dow jones. >> thank you meantime, let's turn to wheatland, pennsylvania, where jackie is reporting. over to you. >> reporter: wilf, kelly, good afternoon. the employees here at zecleman industries are applauding president trump's tariffs on imported steel

they, in fact, were told by management they got $1,000 bonus -- or they will get it when these tariffs go into effect we're talking about an industry that's been hit hard by anti-competitive trade practices. they hoped when president trump took office that something would be done for them angie has worked here 32 years here's what she had to say. >> hopefully bring more people back there's a lot of people still laid off maybe that will up our business enough to where, you know, we can give more people a chance to -- to get back to work. and the community will be doing a lot better also. >> reporter: now, opponents argue that these policies could spark a trade war. it's certainly something that's impacted the stock market as well the industry says, no, we're going to still have to import steel because we're going to have to meet the demand that's out there. and you will see prices go up, but in the grand scheme of things when it comes to

consumers and end products they buy, it will be nominal. clearly there are two perspectives on this, guys, but right now feel workers feel they're getting their just due they're getting what the president promised them. they'll hire hundreds of jobs potentially at this facility alone, at this company alone, and see growth in the industry so, right now, this is being celebrated by steel workers as a win. >> we'll talk to them about those bonuses a little later on. jackie, thank you. for the fallout from our neighbors to the north, let's send it up to deirdre bosa from vancouver. how are they taking it up there, deirdre? >> reporter: not great, kelly. we've been talking to industry insiders throughout the day. some of them note that even some of the big players in american aluminum are against tariffs on canada they say the problem is countries like china, not reliable dependent suppliers

like their neighbors to the north. certainly, canada would be most impacted by these tariffs as it is the number one supplier of steel and aluminum to the u.s. canada manufactures 16% of all u.s. steel imports and 43% of all aluminum imports the response here has been swift and firm prime minister justin trudeau saying earlier today, calling these tariffs absolutely unacceptable and canada's foreign minister saying that scan da would take responsive measures guys, the threat here isn't just the impact of these tariffs, but of potentially a larger trade war. so, the government and the industry, they continue to push for an exemption, which for a while last year seemed very much on the table but there's been some uncertainty surrounding that in recent months as tensions have risen over nafta negotiations. even some arguing for these exemptions warn that may be a

lose/lose situation because even if canada is exempt, that may make canada a more attractive place to dump their steel. >> do they feel they've been purposefully targeted by president trump or getting hit in the cross-fire, hit much harder than other countries? >> reporter: i don't know they're being hit harder but being grouped in the same category as countries like china. remember, canada and u.s., they have a lot of cross-border ties. they're long-time allies this issue actually across back in the 2000s when george w. bush imposed steel tariffs. president trump was exempt talking to players in the industry flow, they are certain -- most aren't hopeful they'll win this exemption this time they're waiting just like everyone else to hear more from the president. >> thanks very much for that meantime, cnbc's yunis joins us from beijing with china's reactions to the tariffs and what that country could do to

retaliate. >> reporter: thanks so much. the state media is saying president trump is finally building his wall. one of the communist party papers has been calling the tariffs the trump administration's 21st century economic great wall. not bad. officially, the government is much more muted, saying the u.s. is -- should exercise restraint. despite all this criticism, there really is widespread belief here that the chinese probably won't retaliate on this issue. that's because the tariffs don't really impact china very much at all. we were talking to steel companies as well as aluminum producers today who said they just don't export a lot to the united states. if you look at the numbers, less than 3% of u.s. steel imports are from china chinese aluminum makes up about 6% of u.s. aluminum imports. we also called up the china iron and steel association who actually described the tariff as a stupid trade protection measure that would hurt the u.s. more than it would hurt china.

and i also got a chance to speak to a former chinese official who said that, ironically, the trump administration move wouldn't affect china as much as traditional allies -- u.s. allies such as south korea, as well as japan. but he also did say that if china did choose to retaliate, they have many different cards the first thing he mentioned was crops, the second was beef he said that if the trump administration wants to play this game, a lot of american farmers are going to feel the pain guys >> sounds like a threat. eunice, thank you very much. eunice yoon from china joining us for a first on cnbc interview is lee o girard, president of the steel workers do you think this is going to

help the steel workers >> we have to quit using rhetoric of trade war and look at what's happening with regard to trade china has a $400 to $500 billion trade deficit. no matter what they say, their penetration into the global market, into the american market, really sets the floor price. as a result of china's actions, hundreds and hundreds of our members have lost their jobs and their mills have closed. our position are those countries that cheat, south korea, china, india, they should be severely sanctionsed. countries that don't cheat, like eu, canada, they should be left out of it. to be talking about a trade war because american workers want some reciprocity, china has a 300 to 400 $500 billion trade deficit in durable goods should we keep closing our plants i don't -- >> you're clear -- >> by the way, let me make one more i want point.

let me make one more point. >> before you move on, i want to make sure -- >> china - >> these haven't been clarified. if he comes out next week, the president, and says we're going to levy these on china, we're not going to levy these on canada, korea and so forth >> absolutely, absolutely, absolutely because canada, australia, uk don't cheat. they don't tried to hide -- by the way, on steel between the united states and canada, it's basically in balance but when you come back and you look at china, let me remind you, three years ago china said publicly, china said, we're going to dominate the world's solar market even if we have to sell into the price -- the cost of production. they said it publicly. well, you can't make solar panels without aluminum. you can't make solar panels without glass. what have they done? they destroyed the global solar market they destroyed solar plants we have in america. we have to take them on. we have to say, enough is enough no one can say a 300 to 400 to

$500 billion trade deficit is something every other country wants. we have to make sure - >> can i just -- clearly, you welcome these tariffs. we understand that you're saying they should be targeted on the countries that - >> cheat. >> -- undermine the system, as say it, but shouldn't they unitedly be imposed by the likes of canada, europe, or they're not going to have an effect -- >> absolutely. absolutely i've had -- >> these aren't going to work as things stand >> let me finish >> do you have - >> hang on the problem is, you jump ahead of the decision. right now this has happened. canada, i've spoken to the minister of trade, i spoke to the canadian ambassador, they'll mirror whatever america does we're opposed to trans-shipment. we're opposed that they take steel that should have been sanctioned in china and they take it and use it to make tubular goods in south korea south korea doesn't drill one inch in their own country yet they targeted america on 80% of

our drill business and they're building their stuff with steel from china that had been sanctioned in america. so, we're against trans-shipment, we're against transformation i'm pretty sure canada will follow that lead we don't want steel that should have been going to america get sanctioned and then make its way to canada. i think that's something we have to do. and it's going to get done. >> albeit, though comments from the eu trade commissioner, quote, we risk dangerous domino effects. by the way, moving on, your organization represents 850,000 workers. it includes workers from many other industries, rubber, chemicals, paper, oil, et cetera do you want to see tariffs in those industries, too? >> what i want to see is i want to see a trading system where people that -- in countries that trade, trade by a set of rules and they don't try to undermine them i'm glad you asked the question. we file cases on tire -- bus and truck tires. we want a substantial penalty on china because they were cheating again.

china had a three-year penalty within six months of the expire of that penalty, china put 50.6 million tires into the american market destroyed the price of tires we had a number of tire companies that had to quit and cut back and we have a slug of imports coming in now because 7,000 of our members lost their jobs i can do the same thing with aluminum, i can do the same thing with aluminum, with glass. america has to send a signal they're not going to stand for this cheating. any country that plays by the rules, should be left out, whether that's canada, australia, united kingdom, and if they don't play by the rules, they ought to be sanctioned. what i told some countries - >> leo - >> let me make my last point. >> we got to go. >> what i've said is if you need to cheat to survive, you shouldn't be in the business >> fair enough leo gerard, thank you for joining us. >> you're welcome. thank you. >> the international president of the united steel workers of america. and other workers, as you point out. 45 minutes to go to the

close. watching the dow, down 230 points, at it's outsized the declines across the s&p much shallower. the russell is still positive and the nasdaq as well. >> mcdonald's very much dragging down the dow the "closing bell" is just getting started. >> announcer: next up, what industry could be the next to get hit with tariffs we're looking at one that may have already caught president trump's eye and ire. plus, larry kudlow and ambassador bill richardson square off on very different sides of what could be a trade war. is it protecting american workers or hurting us? the "closing bell" live from the new york stock exchange is back in t mutwoines you know what's awesome? gig-speed internet.

you know what's not awesome? when only certain people can get it. let's fix that. let's give this guy gig- really? and these kids, and these guys, him, ah. oh hello. that lady, these houses! yes, yes and yes. and don't forget about them. uh huh, sure. still yes! xfinity delivers gig speed to more homes than anyone. now you can get it, too. welcome to the party. welcome back as the market tracks the president trump's protectionist moves, the question now, which industries could be hit with tariffs next phil lebeau is looking at at least one possibility. >> there's a lot of speculation that perhaps we could see the auto industry or, perhaps, one country that supplies a lot of the autos for not only the united states but around the world a target of the trump

administration at this point it's merely speculation. but as you look at what vehicles are sold in the united states and where they come from, keep in mind, about 43% of the vehicles are built here, that are sold ere there's canada and mexico at 35%. japan, germany and korea, those three are in question. wilbur ross earlier talking about what he considers to be a human imbalance when it comes to tariffs and autos. >> the tariff on automobiles coming into the u.s. is 2.5% a tariff on automobiles going into the european union, 10% tariff on automobiles going into china, 25% that's a disequilibrium. so, while all these countries talk about free trade, they actually are the most protectionist countries in the world. >> and one country that has drawn donald trump's ire in the past, especially when it comes to the auto industry, germany.

look at the trade imbalance between the u.s. and germany in terms of vehicles we send to them versus what we import from them and this is the entire auto industry not just autos, but also auto parts. $25 billion is what we import. we send out just under $7 billion. take a look at shares of the german automakers that were under pressure for most of the day. understandable given the speculation that, perhaps, perhaps, germany might be targeted in the future with tariffs. for the automakers overall, it's been a rough week. back to you. >> phil, quick question. that 10% figure that wilbur ross said is what the eu applies to u.s. cars coming in. is that the same figure that the eu would apply to any car from any country around the world or is it u.s.-specific, do you know >> it's u.s.-specific. it's a different tariff if you build in mexico and ship to europe, which if you look at where the automakers are building their plants, one reason they're building them in mexico, you not only have nafta for the u.s. supply, but you also can send it over to europe

at a far lower rate than if you build and export from the united states >> another incentive to go south. phil, thank you. our next guest will tell us what he thinks the consequences might be of targeting specific products like steel or even cars or targeting long-term trading partners like germany. >> joining us now, matt gold, former deputy assistant u.s. trade representative for north america in the obama administration he now teaches at fordham. thank you for joining us we want to talk about the legalities around all of this, particularly in a moment about possible retaliation that we could expect first of all, what is the legality of what president trump plans to deliver next week, particularly in and around that claim that it's in the interest of national security >> yeah, it's a complete violation of wto rules it's a violation of very, very fundamental rules being committed by the world's foundational economy, the united states, which is also the architect of the entire global system and it has severe implications

for undermining the contradict of the entire trading system, in addition to the fact it will bring litigation to the wto by our trading partners for violation of those rules >> matt, if that's the case, why doesn't the u.s. just leave? i mean, there's been concerns about china's compliance with wto itself i mean, at what point do they just say, fine, why do we even have to stay involved? >> oh, no. it's not even remotely possible for the united states to pull out of the wto the entire global economy is based on the global trading system and there is no possibility, none, that that would even remotely be a consideration by anybody. >> well, is there -- there's a difference between it being a consideration or something that's not possible. i'm sure it could be raised as a possibility. are you saying it can't happen is there anything to prevent that from happening? >> besides the entire united states congress, it can't happen there isn't -- there probably is more than 5% of the congress that would even consider supporting something like that it really -- if you're asking

the question, i'm sorry to say, you don't realize how truly catastrophic that would be >> matt, i want to ask you a little more about the legality of imposing these tariffs. so, first of all, this one has been listed under national security concerns, which you don't think, in fact, apply. that aside, a lot of people are concerned that this could spark further tariffs, whether it's on automakers or others clearly, those couldn't even be claimed to fall under national security so, is it actually much harder to see the administration deliver more tariffs in other areas than, perhaps, the market has got worried about in the last couple of days? >> absolutely. there's a real national security reason for us to be imposing these barriers but it doesn't rise to the level of an emergency and international relations that we would have to have in order to get the exception to the normal wto rules that we were -- that we're account acting inconsistent with there's a natural security reason, but it would have to be time of war or international

relations and we have neither right now. in order for the executive branch to impose trade barriers over and above the ordinary customs duties, we have to be in one of five situations the goods are being dumped, the goods have been subsidized, the goods have suddenly surged, national security or retaliating against another country for violating rules against us it has to be one of those five and -- >> and why - >> -- from germany will not fit into any of those five. >> before we let you go, why would it be catastrophic for the u.s. to attempt something like that with regard to the wto leaving? >> we have so many export markets in so many goods and so many services in every country in the world that depend on wto rules. most people don't realize the staggering number of rules and complexity and the very, very high level of compliance most countries have with most rules upon which our entire export economy is based and if the wto collapsed, which it would if we pulled out, it wouldn't just be u.s. losing all

its exports, the entire global economy would fracture it's become so specialized with different countries producing different things, that it would be a huge economic downturn. i mean, it would really be catastrophic for the global economy. >> matt, just quickly, if you're right that these rules will contradict wto rules, what is the punishment that the u.s. could receive back, aside from simple retaliation is there -- could there be legal battles? could they be sued what will be the punishment? >> two categories. one is a legal battle of the wto that will give our trading partners legal authority to impose high tariffs. that will take a few years other countries will turn around and say, you know what, the united states is following the rules and we're going to follow the rules the same way that's a different argument because that allows them to impose barriers especially to our agriculture on the same national security argument that we're making on steel. >> matt, thank you >> thank you

>> matt gold joining us there. a little more than 35 minutes to go in the session markets off the lows dow's down 171 right now as you can see, the nasdaq is positive by 0.5% the russell is up 1.3% and the s&p has turned slightly positive. the weather outside might not feel like it here, but the spring housing season is under way and home supply is about to get a lot tighter. we have a special report on that next. later, former new mexico governor bill richardson says while he disagrees with the president on many issues, tariffs aren't one of them he'll lay out why he supports trump's latest move. back in a couple minutes (daniel jacob) for every hour that you're idling in your car, you're sending about half a gallon of gasoline up in the air. that amounts to about 10 pounds of carbon dioxide every week. (malo hutson) growth is good, but when it starts impacting our quality of air and quality of life, that's a problem. so forward-thinking cities like sacramento are investing in streets that are smarter and greener.

the solution was right under our feet. asphalt. or to be more precise, intelligent asphalt. by embedding sensors into the pavement, as well as installing cameras on traffic lights, we will be able to analyze the flow of traffic. then that data runs across our network, and we use it to optimize the timing of lights, so that travel times are shorter. who knew asphalt could help save the environment? ♪ we're all under one roof now. congratulations. thank you. how many kids? my two. his three. along with two dogs and jake, our new parrot. that is quite the family. quite a lot of colleges to pay for though. a lot of colleges. you get any financial advice? yeah, but i'm pretty sure it's the same plan they sold me before. well your situation's totally changed now. right, right. how 'bout a plan that works for 5 kids, 2 dogs and jake over here? that would be great. that would be great. that okay with you, jake? get a portfolio that works for you now

and as your needs change from td ameritrade investment management. excuse me, are you aware of what's happening right now? we're facing 20 billion security events every day. ddos campaigns, ransomware, malware attacks... actually, we just handled all the priority threats. you did that? we did that. really. we analyzed millions of articles and reports. we can identify threats 50% faster. you can do that? we can do that. then do that. can we do that? we can do that.

welcome back it may not feel like it in much of the country but the spring housing market is under way. diana olick is in washington with that story for us hi, diana. >> reporter: hi, wilf. the latest read from realtors shows the number of listings down 10% in january from a year ago to the lowest level since they began tracking it decades ago. that supply and the reason is because home building basically ground to a halt during the recession and still hasn't totally recovered. builders cite lack of land and labor as well as high construction costs but what will make the crisis far worse is a demand surge that has yet to even hit. there could be demand for close to 8 million new owner/occupied homes in the next decade, according to researchers at

amherst capital. millenials finally abling into home-buying years and it's the second largest generation, the baby boomers, they're hitting their peak years of homeownership now and they have a longer life expectancy sthan any previous generation, meaning they're likely to stay in their homes longer add to that, migrations. marks like orlando, nashville, dallas, austin, phoenix, have huge growth but don't have homes to meet that it's not just single-family homes but apartment buildings like this one that will be so sorely needed. >> thank you diana olick. time for a cnbc news update. let's get over to sue herera. >> hi, guys, here's what's happening at this hour a london man has been convicted of trying to recruit children to carry out islamic state group inspired attacks across the british capital.

25-year-old umar hike identified sites as big ben, heathrow airport, hospitals, as sites, and accused of radicalizing children at mosques and two schools. president vladimir putin boasting about his new eapons, saying some bordered on science fiction. he said they succeeded thanks to new materials. he made the comments at a public forum. a powerful nor'easter pounding the new england region. a state of emergency for those in massachusetts along the coast where it was battered with whipping wind and heavy waves that caused a lot of flooding. prince harry and wife-to-be meghan markle will invite 2500 members of the public to take part in their wedding celebrations they will be people associated with the couple's various charities. can't wait that's the news -- i can't i can't wait

who doesn't love a royal wedding? >> i think i'm afraid to say, i think i read that that's just for british people, so you're not going to be able to apply to be one of those 2,500, alas. >> i'm always looking from the sidelines, wilf, what i can tell you? >> do have you an in >> i don't, unfortunately. >> which is it >> it's in may. >> i think you can get there >> i would only want them to have their guests there. >> sue, if he does go, he can bring you. >> excellent. >> i want to see the pictures. >> you got it. >> let's switch focus. much more corporate reaction to the president's tariff talk. phil lebeau has the details of that >> we finally have a statement from ford regarding these proposed tariffs for steel and alumin aluminum yesterday ford was saying go through the automotive policy council in washington. today the company out with a statement saying, despite the fact that ford buys the vast majority of its steel and aluminum for u.s. production in the u.s., this action could result in an increase in

domestic commodity prices, harming the competitiveness of american manufacturers this echoes, to a certain degree, what we heard from toyota yesterday and today, saying, look, prices are going to go up now, ford's not saying it's going to raise prices on its products, but it clearly is saying there will be an impact here how much remains to be seen. we heard wilbur ross earlier downplaying what the impact might be on the auto industry. there's no doubt people within the auto industry are preparing for ramifications here. >> phil, thank you very much for that phil lebeau for us there. joining our krb cnn exchange, brent from northwestern mutual, gordon and jack from ucx. good afternoon to you all. brent, i'll start with you, if i may. in terms of the market reaction overall we've seen to these tariffs, do you think underreaction or overreaction? >> i think an overreaction in general i think it's helped me view trump's actions in terms of him being a negotiator to me this is an opening anchor,

where you start a negotiation from i think this will be give and take back and forth. i think the second important point is people worry this is going to cause a great depression-like event because that's what happened back with smoot/holly. you have massive fiscal stimulus on one side, a monetary policy still very easy, an economy growing so i'm not sure it's going to cause a recession but i do think it will cause price increases, which fit into one of my worries, which is longer term inflation rising. >> gordon, do you think that's on the market's mind right now >> i think so. look, i think it's more than just the tariffs, per se i think we're reacting to just headline risk. there seems to be in-fighting here -- in the administration about whether they should do this you've heard rumblings - >> is it more important to you that what happens on the steel front or more important to you that gary cohn is still part of that administration, for example?

mcmaster, jeff sessions' name is thrown around. you look at the administration and you say, he promised to keep the best and brightest but how if he has this revolving door? the underlying is still strong with the tax bill and with tax relief coming, ultimately, i believe there's going to be good opportunities for patient buyers to buy the dips and we'll see this stabilize and start to retrace. >> when we consider the tariffs, what's the underlying impact on the economy? will it lead to significant price rises in many sectors or provided it stays just to a steel and aluminum tariff, is it relatively muted, the impact >> i guess it really depends on whether it stops right with that i mean, you know, the real question is whether this is going to turn into smooth/hawley 2018 what we've been seeing over the course of these last couple of sessions is more of a warning signal than anything else. it is telling you what, in fact, could happen if we pull out of

of nafta if gary cohn loses completely in the white house and actually leaves we're going back to the beggar thy neighbor policy. for all you millenials, google it the problem is that right now, we are at a sensitive juncture think about it we have exported american-style, you know, free enterprise all over the world, lifted billions of people out of poverty this president has done everything right until now protectionism is a prosperity killer, plain and simple the answer to your question is, if it stays just with steel and aluminum, i think we'll be okay. if protectionism spreads into every other part of the economy and turns into another form of b.a.t.t., then we have a problem. >> we'll be reading about beggar thy neighbor all weekend thank you. thank you all. we've got 25 minutes to go before the close the dow is lower still by half a

percent. the nasdaq leading the way is up 0.75%. the dow was down 391 points at the lows so we're well off those lows, down 140 points. coming up next, cnbc senior contributor larry kudlow just called the president's tariffs a bad omen that could cause a major calamity but former new mexico governor bill richardson says they're crucial. we're bringing them together to debate it after the break. gglobal bonds, and high-dividend strategies. sure, these are investments.

but they're not what people really invest in. what people really invest in, is what they hope to get out of life. but helping them get there takes a pure focus. because when you invest their money without distraction, hidden agenda or competing interests, something wonderful can happen. they might just get what they want out of life, and maybe even more. but prevagen helps your brain with an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. the name to remember. what's critical thinking like? a basketball costs $14.

what's team spirit worth? (cheers) what's it worth to talk to your mom? what's the value of a walk in the woods? the value of capital is to create, not just wealth, but things that matter. morgan stanley

we need to be ready for my name's scott strenfel and r i'm a meteorologist at pg&e. we make sure that our crews as well as our customers are prepared to how weather may impact their energy. so every single day we're monitoring the weather, and when storm events arise our forecast get crews out ahead of the storm to minimize any outages. during storm season we want our customers to be ready and stay safe. learn how you can be prepared at pge.com/beprepared. together, we're building a better california.

correct? >> well, that's what the president seemed to announce yesterday. >> well, what does that mean, seemed to announce, commerce secretary? >> let's assume that to be the case >> so, it's not exactly clear where all of this is going necessarily. you heard from wilbur ross that the president seemed to announce something, but they'll work out the details of exactly what that was. part of the confusion comes from the amount of confusion about who is actually in power here in the white house. john kelly, white house chief of staff, has been through a couple weeks of speculation he might depart the white house gary cohn, national economic counsel director lost out big time in that debate yesterday.

there's been speculation now that he might depart h.r. mcmaster, national security adviser, speculation that his relationship has soured with president trump. jeff sessions has been the subject of a barrage of criticism from the president publicly and privately and then jared kushner, there have been questions raised about the appropriateness of his interactions with financial entities and others he's doing business with in terms of his family's private business and in terms of the business he does here at the white house. all of those figures under a lot of pressure in terms of the public media and questions raised about whether any of them or all of them are going to remain as part of this administration so, that makes it difficult to work out the process in an orderly way. we've seen a chaotic role out of the president's announcement yesterday. now at the white house they're trying to figure out how to put order into that process as they go forward, kelly. >> eamon, we'll see. thank you, eamon javers. president trump's trade proposals haven't caused riffs just inside the nation's capital

but inside as well for more on these controversial moves, we're joined by cnbc senior contributor larry kudlow and former new mexico governor bill richardson. larry, we spoke to you at length yesterday about your displeasure on this subject. governor, tell us why you think this is actually smart, prudent policy by this republican president. >> well, i'm a tree frad trader i consider myself that i tonight like what the president has done to get out of the transpacific partnership, other protectionist moves, like solar panels, i want him to stay in nafta, but in this case i think it makes sense china doesn't play by the rules. secondly, our military depends on some of those steel imports there's an overcapacity. china is dumping a lot of steel. i think of those ohio steel workers in the midwest that have been suffering so, i'm going to give the president my support on this one because i think we send a signal

to china that needs to be sent one, we expect you to stop playing around with intellectual property and dumping steel i think it's also a geopolitical message, which i can discuss a little later i generally agree with my friend, larry, on issues like this, but on this one -- >> he's shaking his head right now. >> all right, by the way, bill richardson, one of my favorite democrats, all-time. i just want to say, bill, look, you're right about intellectual property rights. you're right on target that's where the administration should go, selectively china is not a player in steel they're not a player they don't affect us whatsoever. the players here are usa, canada, mexico, brazil, and i'm going to say that the users of steel, whether it's consumers or businesses, are going to get slammed. that's what's it going to happen steel prices before this have been going up for over a year. aluminum and scrap steel and so forth have been going way up this will give them a chance to push steel prices even higher.

the administration keeps telling us they're not worried about the cost i would be worried about the cost you know who gets hurt the most, bill richardson, lower income people they get hurt the most whenever we plug tariffs -- when we did it in 2002-2003 with w. bush, prices soared, 14%, 15%. that's low-income people. >> well, larry, here's my point. we don't know how the world is going to react is china going to retaliate? probably in some way some of the other countries you mentioned. i do worry we hit canada because they're good friends the same with mexico look, we don't know what's going to happen. we don't know eventually what is going to be the final product. is it going to be 20%? is it 10%? you may be negotiating but i just think we need to send a signal to the international community that, all right, if we're all going to be free traders, we got to play for the

rules. here's to other areas, larry you know, north korea, i know you're going to say, what's that got to do with it? i'll tell you what it does we've been saying to china, you've got to keep some strong sanctions on north korea and we're going to be watching you've got to enforce it or we're going to take action against you. i think the fact that the president has made this announcement and will take some action is going to get the chinese maybe a little more moving towards enforcing strong sanctions. >> i agree you know, strategically, i agree with you as i said, intellectual property rights regarding china, i absolutely 100% agree. steel tariffs -- you mentioned canada, our friend in some respects they're our best ally, thick and thin. china imports 50% of their steel. you know where they import it from the usa. so, why are we picking on canada by the way, mexico is a big player they import a ton of our steel, pardon the phrase, and we import

their stuff. let me make this point, strategically, my biggest concern -- the reason they're picking up my quote this could be a calamity. the steel thing won't be a calamity what i do worry about, bill, is running up and hurting our allies for no good reason and, therefore, blowing up the nafta talks. and if you blow up the nafta talks, that will be a calamity, for the stock market, for large chunks of the american economy and strategically as well. that's what worries me we're going right into them and i just fear there's this spillover that will be very damaging to nafta. and if nafta goes down, that will be damaging to everything. >> i agree with you on nafta what i think, larry, this may give the president hopefully political cover to stay in nafta, to improve nafta, to deal with the digital side and energy side of nafta, worker rights, environmental things they're negotiating. maybe this will give them political cover with this

political base that he's always listening to and turning to to stay innafta now that he's taken this move that he had promised in the campaign look - >> that's a very - >> i'm interested -- >> no, governor, you know what, i like that point. that's a very subtle but very interesting point. you and i can't predict. but maybe he understands this relationship i hope you're right on that, for heaven's sake. let me just say also our steel industry is not going to be helped the history of these things, we have so many actions to protect -- you know, anti-dumping action -- >> let's take u.s. steel they got downgraded. why? analysts are concerned steel prices are go down why? because there's going to be retaliation, there's going to be increase in domestic capacity that will push prices higher, imports, there will be substitution - >> that's a very interesting point, too. >> we can't take that as a fact that, you have to raise those prices >> well, i would reckon in the short run prices will go up. this is a very important point look, if we protect our

industries like this, they will not be competitive they will not weather the free market out there, which is a tough market we gauge 100% expensing. use that to rebuild their infrastructure and all their equipment. 100% expensing the next five years. we took the corporate rate from 35% to 21% that's terrific for steel. we have to be competitive. look, president trump said it in davos, my favorite -- i love what he said america is open for business let's stay open, if you ask me and he said, america is first, but america is not alone this, in my judgment, is an alone message. why not negotiate -- bill richardson's concerns about national security are well taken by me. why not negotiate it through with our major steel trading partners that would solve that problem right there without taxing

steel-using businesses and consumers? >> governor, just quickly, aside from the president's base, which you commented on briefly ago, what portion of your own party's voters, democratic voters, do you think will actually welcome these moves by the president >> well, i think the senators from ohio, the house members from ohio and midwest states where there's a lot of steel production will welcome this i'm afraid trader but the democratic party has gone in the other direction because i think a lot of american workers think we're not taking care of them. we're not responding to them so, i worry about that, too. i admit what larry said -- what i'm saying to you has not been consistent i just think in this one case, the president deserves support because of the chinese i know the statistics on steel maybe it's a message to the

world, let's all play by the rules. they're not all playing by the rules. >> in new mexico, you cut taxes -- >> we can't leave on you - >> let me say one thing. >> we can't leave on agreement >> in ohio, senator portman, i've got to get this in, someone asked him about the steel workers in ohio. he said, i worry about the steel workers in ohio. but i also worry about the automobile workers in ohio 7 million plus autoworkers, 200,000 -- >> scott walker, wisconsin - >> so, you've got to be very careful about this thing this could have bad consequences. >> thank you very much to larry kudlow and former new mexico governor bill richardson >> bye, bill. >> ten minutes left. the dow is near session highs. still down 0.2%. it was down -- it was higher earlier. but we are recovering significantly from the lows on the nasdaq up 4% and the s&p is up 0.5%. >> we still have anxiety over this possible trade war taking a toll on the markets.

coming up, we'll discuss if tariffs could lead to a backlash for bonds. there's the ten-year moving back up towards 2.9%. "closing bell" will be right back ones that make it fast and easy to analyze and take action? how about some of the lowest options fees? are you raising your hand? good then it's time for power e*trade the platform, price and service that gives you the edge you need. alright one quick game of rock, paper, scissors. 1, 2, 3, go. e*trade. the original place to invest online.

where can investors seek pin an uncertain world? pgim sees alpha in real assets. like agriculture to feed the world. and energy to fuel its growth. real estate such as e-commerce warehouses. and private debt to finance transportation and infrastructure. building blocks of strategies to pursue consistent returns over time from over one hundred fifty billion dollars in real assets. partner with pgim. the global investment management businesses of prudential.

♪ ♪ wake up early, o. ♪ slap on some cologne ♪ i'm 85 and i wanna go home ♪ ♪ just got a job ♪ as a lifeguard in savannah ♪ ♪ i'm 85 and i wanna go home ♪ ♪ dropping sick beats, they call me dj nana ♪ ♪ 85 and i wanna go don't get mad. get e*trade, kiddo.

welcome back to the "closing bell." as we approach the close, we're down 24 points or so on the dow, but we are near session highs. if we look at the intraday s&p, we opened steadily down and we improved throughout the day and we're near the highs of the day as we approach the close we're looking at the nasdaq up over a 1%, the dow is lagging because of mcdonald's which was downgraded today let's have a look at the s&p sectors over the course of the week even though today is positive, that still shows the impact of these tariffs. which sectors are at the bottom on the week as a whole industrial materials so it has had an impact. utilities down for the week. telco is the biggest winner. we saw buying of bonds today that pushed the yield on the ten-year down to 2.8%. weave seen a reversal.

it's been more of a risk-on mentality and the ten-year yield pushing up to 2.68%. also comments from the bank of japan governor overnight, which suggested they might be getting closer to coming off their loose policy that picked up yields in japan that's picked up yeelsdz everywhere want to end on another international picture. the dax down sharply this week, over 4%. so, that's well in corrections territory. just worth keeping an eye on some declines we're seeing around the rest of the world not enjoying quite a bounceback as we've seen in the u.s as we come to this close, we're near highs on today's session. >> it's been a nice turn-around in the middle of the day i would note most happened since the european close we saw heavy volume in the european etf i think a lot of pressure came from people selling over in europe nonetheless, with the s&p down 2% this week, i think it's still clear the fed and the direction of interest rates is still the number one concern for the market now we have new risks in the market we have the whole global trade

war issue as a major issue it's not just about soup cans or about tariffs on trade on aluminum it's about we pulled out of of the transpacific partnership nafta's looking iffy our trade partners, like south korea, are worried mexico's worried canada's worried this is a much broader than just tariffs on steel and aluminum. >> they signaled that today, less so today than yesterday. >> yes, but this could continue if we see further moves like this that's what the signal of the market we also have the white house and about political issues in the white house. gary cohn, rumors of him leaving definitely sends ripples through the market i get e-mails immediately because they believe he's a stabilizing force there. >> tell us why the dow is down and the other two indices are up. >> the russell 2000 is doing better because many of the small caps have 100% of operations in the united states. the dow is down in relationto

the s&p 500 because mcdonald's is extremely weak. there are concerns about the dollar menu for mcdonald's. >> there's the bell. the dow will close down about 50 points decent gains for the nasdaq and s&p. ringing the bell at the new york stock exchange, masonite international corporation. that is it for the first hour of the "closing bell. selly wi kelly with the second hour have a great weekend, everyone thank you, wilf. bell come to the "closing bell," i'm kelly evans. stocks finishes -- only the dow lower for the day, down about 75 points for the close we were down almost 400 at the lows of the session. quite a turn-around this afternoon. the s&p closed higher by 13 points to 2691, that's 0.5% gain the nasdaq just had a 1% gain to put it at 72.,257 the russell 2000 up 1.7%, up to

1,533. that's with the dollar weaker today. volatility gauge did fall back below 20, at the transports, among some other averages, were still looking at 10% correction territory since the recent highs. so, a lot to digest on the bell. joining me on the panel, we have cnbc senior markets commentator michael santoli alongside cnbc contributor evan newmark welcome. the biggest winner in the dow this week was intel. the chips had a strong week in general. intel was up 2.5% on the week. look at caterpillar, down nearly 10%. in the s&p, the biggest winner was macy's, while patterson companies was the biggest decliner it looked very different this morning when the two-day damage from this tariff announcement was almost 1,000 points off the dow. now all of a sudden things don't look so bad. what's going on? >> it's still a kiddish market

as you can see with these multi100-point swings in the dow every day. i do think there was muscle memory today, which was three fridays ago we actually had a really good intraday rally people thought perhaps stocks sold off enough. that was the day of the low. >> that was the intraday low >> doesn't mean that's going to happen again doesn't mean this is to stay it does show you we're in a market that seems to be buying dips, selling rips, kind of figuring out what the correct range is for stocks. so, i think that the tariff stuff intensified a little bit of the downside action yesterday. but then in the end, small caps were rallying all day yesterday and today. f.a.n.g. stocks -- by the way, adobe systems and salesforce don't use any steel in their products so, all this stuff kind of came up to the surface in the afternoon. >> and why is it the small caps are doing -- they're up like 2% in two days. >> is seems like big selloffs on news when it involves multinationals and trade, it's sort of the crucible for sector rotation and what hasn't gotten

hit and what -- what would maybe weather this environment i don't know if there's a better answer than that because the dollar was rallying. maybe that has something to do with it as well. >> evan, are you sorting through this to say, okay, i -- i think a trade war is coming or i don't, or think these industries are going to get hit by tariffs or not, or all a wait and see. >> i'm in a wait and see mode. i think there's two big uncertainties on tariffs i think the market thinks at the end of the day when the details come out it's going to be a one day, two day bad headline thing and then it will disappear i think that's why the market came back. >> you don't think it will happen the way he described it or - >> they think it will be a headline thing and then the details will come out, it won't be that bad. if gary cohn doesn't leave he can go to ohio - >> let's go back to mike's original point about how many dow points gary cohn is worth. the last couple of days -- >> that's from last year. >> we were say 1,000, 2,000

points on the dow and -- >> i think that's the only reason why you would be buying stocks today if there really was a full-board trade war, the dow should be down 1,000 points. i think that's what the market is thinking. i don't know if they're right at the end of the day i think the second thing is the bond market. i think next friday we'll see the jobs report. we'll have some wage information. and i think this idea of the tariffs and the bond market will be the two things that drive the market and i don't think this resolution on either of those. so, i'm just happy to sit back and wait and bide my time. i think one other thing, i don't think we've seen a full correction yet i don't think until the adobes and the saleforces and the amazons get taken down from there, what i say are very, very nosebleed valuation levels -- >> you could be waiting years. >> i could be waiting. >> scott, evan said he's on the sidelines. what about you, what moves are you making >> you have to keep in mind, fng

is a high-tech etf this is just conjecture, nothing's been signed. it's not impacting the high-tech space as much as everything else nasdaq is up over 1% why? if you're worried about the other areas, you rotate back to high tech. >> you don't think we still need those names for a fuller blown correction >> i think we're going to semin any corrections with those the way we saw at the beginning of february, the way we're seeing now. but if you look at the s.t.a.b. stocks down down -- the chinese f.a.n.g. >> kay >> whereas the f.a.n.g. stocks are down half of that. after today it's less than half of that. we were saying, buy the dip, sell the rip. >> everything that's come out of the white house the last couple of days, possible tariffs, possible trade retaliation, that's going to help that tech trade? >> to a degree i mean - >> around this time that trade -- >> by the way, the idea, which i'm sure some hedge funds believe and i'm sure scott may

believe, that a safe haven trade is going to the adobes -- these stocks have gone parabolic if you look at charts for amazon - >> they're the new staples. >> these are parabolic stocks. i'm not -- >> name the 12th stock on that list, that you think is insane. >> twitter >> my moipoint is it's a locali group of mega winners that have scharts like that. >> that's true. >> it could be very wrong, but it's not this pervasive thing for -- >> you like tech ex-f.a.n.g. the way to look at tech is to look beyond -- >> but you're also looking at substantial earnings growth on some of those names where it was always, oh, we're going to be flat, we don't want to show growth now you have substantial earning growth like with amazon itself aws has blown up the tariff issue, the only risk to f.a.n.g. stock is maybe

google because they have so many international concerns if there's a pushback, they're the ones and get hit harder. >> the issue of intellectual property, especially with regards to china, could come up here. >> guess who doesn't have business in china? facebook and google. >> i'm not even talking -- let's talk -- we want to talk about netflix? netflix's entire future is based on the idea they're going to replicate their business model all over the world that's another parabolic stock that stock is up 50% year-to-date. >> and yet the last two earnings periods they grew internationally, so it's fighting against your argument. >> for more on the president's proposed moves, let's bring in bruce hamon, former ambassador to canada during the obama administration basically serving in this post thank you, mr. ambassador, for joining us. >> good to be here. >> tell us what ul think is rail going to happen here >>, so the reality is when you use the word war, you're talking conflict and conflicted is something the

u.s. and canada should ever have in the dwepgs of our relationship there's a peace arch in blame, washington it was built 100 years after the war of 1812. on one side it basically says, children of a common mother. and on the other side it says, dwelling together in unity is this is the concept of u.s. and canada the actions the president has been taking recently, his language, his style, and now with potential tariffs this next week where we'll define whether canada's part of it or not, is a very hostile act economically -- >> mr. ambassador, i don't think the president is running after i'm going to go african da type of thing what it sounds like going after china to make sure they can't back door -- if we say, canada, you're white listed, they'll dump somewhere else, funnel it it's meant to kind of be all-encompassing so it works,

right? >> canada is the number one trading partner we have on steel and aluminum if you look at chooina, they're way down the list. to use this as a national defense reason, i think it's an affront to canada, canadians believe u.s. and canada together are national defense we do that in norad, we protect north america, we do it in nato. to sit down and talk about supply chain this way is an affront. >> it's not the u.s. saying we're doing this because we woke up and had a national security issue and we want it made in the u.s. there's a problem with china flooding the market with these imports, in some ways doing is it nefariously through mexico and so forth if they want to crack down on china and keeping them from being able to hopscotch and do that through different markets, that's what this is all about, canada just becomes caught up in that, right? it's not a direct attack on our neighbors to the north. >> i hope not. i hope you're absolutely right in describing that but indirectly the impact is fairly significant here.

and i'll tell you, you've seen the canadian currency. i'm up in canada right now i will tell you across the board there's a great deal of anxiety over this here. >> mr. ambassador, can you give me a reason -- i can't find one, but maybe i'm missing something. give me a reason -- give me a good outcome from trump doing this how does this work to his advantage. you probably see it similarly as i do but there must be some underlying reason for this >> you know, and i'm not going to go there to even try to find a reason for this. >> i'll give you one i'll give you one, ambassador. how about this, as a result the u.s. stays in nafta, strengthens it, the u.s. joins the tpp, right? i mean, it's possible. >> i think you can do all of that without, you know, committing to tariffs on any products around the world. and i think that the u.s. should have been in tpp and walking away from the table is a bit more reckless than sitting there and negotiating. and i think that, you know,

nafta should be updated. i've been saying that over the last several years that it's an agreement that's old that needs to be updated but, you know, the reality is the threats of tearing it up and walking away and the -- you know, the fact of the matter is, canada last year had a budget -- you know, sorry, had aid trade surplus with the united states you know, in goods and services. and i think everybody's playing with the numbers and doing it. bottom line, canada is our best friend it's our greatest ally in the world. and they shouldn't even be caught up in side action with other countries. we should be embracing them. >> all right mr. ambassador, thanks for joining us >> pleasure. >> former ambassador bruce hamon. before we go -- i know we're talking about steel and so forth. anything going into the weekend that you're doing to say, okay, i'm ready for whatever's going to come down the pike next week? i'm going into tech or - >> first off, since ehe doesn't want to answer the question is

huberus. >> you might believe that but he could make a different case. >> true, but on a grand scale, i think 99.9% of the people, whether on the left or right, it's huberous and overstepping. >> if china is dumping, should something be done with that? >> the problem with china is the intellectual property and the 301. it's not steel if you look at the percentages, that's not the real problem with china. the problem with china is intellectual property. >> i know you want me -- you want mef -- that money market fund at 1.6%, given bonds are down, everything else is down, you keep laughing at me. you'll laugh me through the correction. >> bonds are where the yield on the ten-year is where it was like five weeks ago. >> no, no, first, i think you're still down year-to-date on bonds, probably the long bond you're probably down 4% on the

long end. >> yet somehow we found something to be scared of that had nothing to do with the bond market my point is the market is in a correction-type mode it will find things to we're about on a day-to-day basis. we'll find if we find some value point where it makes sense to have corporate earnings and everything else be the focal - >> i'm not trying to dismiss what you're doing, but every time you say that, people go, whoa i mean, you're talking about, i'd rather have 1% for the year than be in in any other financial -- >> at 1.6% -- by the way, a lot of people put theirmoney in th bank and the banks are taking all the profit. >> i hear you. last word, scott. >> one thing, talking about the correction and where are we at, the vix is in backwardadtion every time this happened it signaled the end of volatility this could be short term the weekend, a lot of news is going to come out and probably carry us monday, tuesday by the end of next week, there's no reason to think we won't be right back up. >> i don't see you picking on

warren buffett for sticking 100 million in treasury bills. you don't pick on him. >> you say i do that with 50% of my clients. >> you're not picking on him. >> scott, thank you very much. >> thank you. >> there's a lot more still ahead on the "closing bell." >> announcer: next up, an executive that's so happy about the possibility of tariffs, you won't believe what he's doing for his workers. plus, another part of the market where china may be able to inflict massive damage on the american economy the "closing bell" with kelly evans and mike santoli is back live from the new york stock exchange in two minus.te today, innovation in the finger lakes is helping build the new new york. once home to the world's image center, new york state is now a leader in optics, photonics and imaging. fueled by strong university partnerships, providing the world's best talent. and supported with workforce development to create even more opportunities. all across new york state, we're building the new new york.

to grow your business with us in new york state, visit esd.ny.gov.

employee, quote, as a direct result of policy changes announced by president trump for more on this, we're joined by executive price president mickey maclemara

>> thank you for having me. >> how is your company able to afford $1,000 bonuses as a result of this >> we are excited about the tariff and have tremendous impact and the entire domestic steel industry we think it's important to share that with our employees. our employees and their communities and our communities are the places that have been adversely impacted the most by the subsidized and illegally dumped foreign steel over the past decade. we think there are great days ahead and we wanted to share it with all our people. >> we saw a lot of bonuses announced when the tax -- corporate tax rate was cut companies said, right away, up you know, we're going to save. nothing has happened yet this hasn't been formally announced and we don't know how your customers will react. that's how i'm wondering, how are you okay to say, all of a sudden we have the capacity to pay out these bonuses.

>> the bonuses will be paid when the tariffs go into effect and then on each anniversary thereafter as long as they remain in effect so, if something happens and this falls through, we'll have to revisit the situation. >> can you also talk about what you think your customers will do here you know, if i made something and the price went up 25%, i assume people wouldn't just say, all right, fine, we're happy to pay you, you know, that much more what are you -- what are you going to do if demand falls off a little bit >> well, i think that the -- if you read the 232 report, the tariff level is set to reduce imports by 8 to 10 million tons. that's on a market of 35 million tons of imports today. so thafrz going to be a curving of imports but it's not going to knock imports out of the market. we think the opportunities are going to be there for us it's going to grow our market. we're confident on that. you have to remember, we're a pipe and tube company, so we actually buy hot-rolled coil

our input cost will go up as well, but we feel confident that that's going to be offset by the opportunities ahead of us. >> stay with us. we want to bring in ravine gandhi, manufacturer of nonstick coatings thank you for joining us so, help explain how the tariffs will impact your business. >> we're one of the world's suppliers of nonstick coating and they go on cookware, bakeware, small electrical appliances made out of steel and aluminum a lot of our clients are nervous because if those become more expensive, demand will fall off, which -- and for us as a tier-two supplier, that will hurt i applaud mickey for these bonuses. i think it's awesome, great for doing it and all for it. but what i'm for more than anything is capitalism i'm just nervous whenever we have tariffs because it's very arbitrary, it's a thumb on the

scale and distorts free market clearing and is that makes me very, very nervous. >> the argument is china is not playing by capitalist rules. they're cheating in that case -- >> yes. >> so that's why there's this -- you know, this measure to basically punish them for doing that >> look, i can say as someone who built an operation, we do have some manufacturing in china, china is not always fair. there's no doubt about that. and i definitely want to be hard on china but i think ultimately the question is, who is buying all the goods? when we say things are illegally dumped and all these products, whether it's steel or anything else else, it's americans. this is where the rubber hits the road what's really hard is until americans decide to stop wanting the lowest possible prices, i don't know what the solution is. that's why i think it's very difficult what the president has done what about iphones, most industries besides the steel guys -- again, i applaud mickey, but most industries are complaining about this because it says, they say that their

input costs will go up and prices are going to rise so, i just -- i just worry that, you know, we're a country addicted to low prices and, you know, consumption. i'm just as guilty as everyone else but this is why i think tariffs don't work >> mickey, do you want to speak to that? >> sure, i'd love to speak to price. i think you've had a number of people on today, including secretary ross, who have done a good job of pointing out the fact that steel is a component of most consumer products and it isn't the primary component of most consumer products so, the consumers -- the effect on the consumer of increased steel prices is nomal to negligible but what people aren't understanding about the price issue here is how pricing works in the steel market. so, the steel market you have to understand has massive amounts of excess capacity this excess capacity is offshore, it's subsidized and able to sell products without regard to profit so, there isn't a free market

price with respect to what steel is there are -- >> i don't know. i think it's -- >> listen, excuse me, excuse me, the only thing in pricing in the steel market is there's what they do and there's what we do sitting here today it feels really good for america to be doing something. >> you know, i just like -- like i said, i'm all for capitalism if i made steel, i would be out here celebrating, too, because the president gave me this big bonus. i did see secretary ross earlier with his can of campbell's soup and a coke can but i think that's a pretty hard argument to sell when you talk about, you know, cars and you talk about all of the giant industries in america. and the bigger point here, i think it goes beyond steel it's from a game theory perspective. what if this is the beginning of an actual trade war? and at that point, the market already doesn't like this. >> if you want to talk about trade war, we've been in a trade war for decades. >> well -- >> we've been this a war with companies competing against nations and nations that don't

play by the rules. so, you know - >> i'm all for america i'm all for america, but i just think -- >> you keep talking about -- >> one at a time go ahead. >> you talk about capitalism and you talk about free markets, but what you don't understand is in the steel market, it isn't a capitalistic free market environment. the price is not set in a free market system. there are nation players that set pricing and allow products sold into the market for below cost at points no other industry is asked to compete -- >> let me -- mickey, can i just -- mickey, hang on one second, mr. gandhi let me ask you one question, mickey what will you think if by the end of next week, the stock market goes down big time, there's lots of press reports, retaliation, gary cohn leaves his job and the stock market goes down and donald trump backs off the proposed -- or softens

to the point where it is very, very weak. what would your reaction be in that case? >> we'd obviously be disappointed i mean, president trump is -- has made some promises to our industry i think he's so far to date, he's stood behind those promises these tariffs are the latest example of that, you know, following the tax cuts and i think that he's committed to this. we believe he's committed to it and we would be disappointed if something else happened. >> well, and we know the president -- >> the last word. >> look, again, i applaud mickey for giving those bonuses but i think president trump did something that's fundamentally political. why did miller/coors come out against this tariff? they said the price of beer can that will go up. a lot of voters on the right and left drink beer. when those prices across the board go up, i think the market could go down tremendously far and potentially put us in a recession, which i hope does not happen this president is a

destabilizing force. and i just cross my fingers and hope next week he starts backing off. >> ravine gandhi, mickey mcnamara, thanks for joining us. >> thanks, guys. >> i was going to say in terms of this whole idea of consumer prices going up, if you read between the lines of what wilbur ross said today and even before what secretary mnuchin said about companies being able to absorb higher costs, they kind of think that corporate profits are the thing to take the hit here there's a buffer that might be what the stock market, if it really happened, would be a little more worried about. >> the part that i think is crazy is that something we talked about last week, neither of you were here, but i talked about it, is this idea that you can fine tune these things like the fed fine tuning a quarter point here you can fine tune tariffs. people will see that it is much more complex and much more difficult to do than donald trump thinks right now >> so much still depends on what the actual announcement is next week which countries are actually targeted and what happens as a result of that

ahead, how china and japan could retaliate for u.s. tariffs but in a very different way. much more on the nasdaq and russell. those were up big today. look at these gains, even with all of this going on, 1% for the nasdaq, 1.7% for the russell "closing bell" is back in two. and the wolf huffed and puffed...

like you do sometimes, grandpa? well, when you have copd, it can be hard to breathe. it can be hard to get air out, which can make it hard to get air in. so i talked to my doctor. she said... symbicort could help you breathe better, starting within 5 minutes. symbicort doesn't replace a rescue inhaler for sudden symptoms. symbicort helps provide significant improvement of your lung function. symbicort is for copd, including chronic bronchitis and emphysema. it should not be taken more than twice a day. symbicort contains formoterol. medicines like formoterol increase the risk of death from asthma problems. symbicort may increase your risk of lung infections, osteoporosis, and some eye problems. you should tell your doctor if you have a heart condition

or high blood pressure before taking it. symbicort could mean a day with better breathing. watch out, piggies! get symbicort free for up to one year. visit saveonsymbicort.com today to learn more. if you can't afford your medication, astrazeneca may be able to help. wow! record time.s. at cognizant, we're helping today's leading life sciences companies go beyond developing prescriptions to offering subscriptions with personalized, real-time advice for life-long, healthy living. honey? you almost done? nope. get ready, because we're helping leading companies see it- and see it through-with digital. welcome back another wild day on wall street. the dow is down nearly 400 points, only to decline with a

recovery of 70 at the bell that was mcdonald's with a downgrade there. all the other averages were positive today the s&p up 0.5%. look at the nasdaq and russell, the nasdaq up 1.the russell up 1.7% the russell building on a two-day stretch of gains. >> they had to pick up all those netflix shares that were down briefly. >> who, the nasdaq >> yeah. i can't believe that stock is up 50 m 50% year-to-date. >> i agree, it's almost unbelievable but it's actually happened. time for a cnbc news update with sue herera. >> hi, everyone. deputy attorney general rod rosenstein addressing the american bar association in san diego. he delivered words of praise for his boss, attorney general jeff sessions says. >> i can assure you the department leadership team appointed by president trump is very strong on ethics and professionalism. history will reflect that the

department of justice operated with integrity on our watch. delta air lines showing no signs of backing away from a decision to cancel discounts for the national rifle association despite a revenge move by georgia george state leaders that deprived the airline of a significant tax break. it released an internal memo from its ceo to employees that insists the airline's aim is to remain neutral in the gun debate. in california strong winds and heavy snow causing travel problems in parts of the sierra nevada mountains howling winds, more than 2 feet of snow has already fallen and they have another foot expected throughout today and it's not all that great on the east coast either, kelly that's the news update back to you. >> blowing clear across the country. sue, thank you. >> have a great weekend. >> you, too. the nasdaq putting together a late-day rally to finish the day higher by more than 1% the russell up 1.7%. the "fast money" trarsde tackle

tech and small cap right after this

we need to be ready for whatever weather may come our way. my name's scott strenfel and i'm a meteorologist at pg&e. we make sure that our crews as well as our customers are prepared to how weather may impact their energy. so every single day we're monitoring the weather, and when storm events arise our forecast get crews

out ahead of the storm to minimize any outages. during storm season we want our customers to be ready and stay safe. learn how you can be prepared at pge.com/beprepared. together, we're building a better california. stocks extending their losses

reacting sharply to the president's tariff announcement. >> coca-cola has three cents worth of aluminum in it. if that goes up 10%, that's three-tenths of a cent. >> whoever advised him on this ought to be reprimanded. >> the biggest culprit in the global steel overcapacity which impacts our market to a number of different avenues is china. >> chinese, as you'd expect, were quite critical of trump's actions saying global trade would suffer. >> canada is the number one supplier of aluminum and steel to the u.s., so the country is really bracing itself for the impact of the tariffs. >> i am urging people to not panic. >> the stocks finishing -- the dow lower for the day, down 75 points on the close. we were down almost 400 at the lows of the session. >> the other averages are positive be sure to catch all the "fast money" action beginning at 5:00 p.m. eastern tonight before we catch all that action,

let's bring in david sieberg and brian kelly. we're teasing you before we even see you. there you are. >> there you are >> hi, kelly. >> hello let's talk about the nasdaq and russell, because this morning it looked like day two of this narrative about tariffs and trade wars and all this. what is going on with those two? how do they close higher, 1% and 1.7% >> obviously, in a scenario like this, you'll expect the smaller cap or the u.s.-centric companies to perform better on a relative basis therefore, i think it was just about that i think money in the near term probably flows to the russell or towards more smaller u.s.-centric companies versus going into some of these mega cap, you know, multinational names. technology is really what you have to keep your eye on here. watching tech stocks and how they react necessity led the market higher. they'll lead the market lower. we're coming up on an intellectual trade case, sthe 30 intellectual property case that will be released within the next few weeks. that will be interesting because we have the plague of these

trade tariffs with steel we'll start to see it in intellectual property. if we get anything crazy numberswise it will have an impact on technology stocks. >> mike, you mentioned, sure, we have the strong session today but the nasdaq is still down for the week. >> the s&p down 2.5% for the week the s&p is smack in the range of the between the highs and lows it's funny, people say, this is a corrections process. in is what the process looks like it's the rallies, you think you're out of the woods, we're not, and then -- that's kind of what we're in right now. so, it's really hard to say on any given day if we've seen the right bellwethers lead us in a way that tells us where we're headed ultimately. >> brian, what are you going to be watching? >> i think you need to watch the tech sector and the bounce we had. i actually think this is going to fail. you want to watch next week. think about it, why do those things rally today because people said, you know what, probably overdone. am i really going to cancel my netflix account because i'm paying 0.66 cents more for a can

of campbell's soup no so people said, time to buy. once we see over the next couple of weeks what the retaliation is and if there's some real consequences, i don't care if you're a russell, a tech, or an s&p 500, you'll have problems. >> so, evan's netflix won't be -- will that make you feel better if it starts to trade down like the rest of them >> all i'm saying is those have been sach haven stockses, it's weird but true i don't think you'll get a full correction until amazon and netflix and adobe and salesforce earn valuation ranges that make some sense. >> the last thing you'll cancel, right? last thing you'll do is cancel your cell phone and netflix subscription >> my only point is, these things are built on sentiment. if -- i don't think it will come to a trade war but if there's a real trade war, sentiment -- >> won't the last couple of days get a sense of that?

>> when things sell off, everything sells off. >> true. >>ed any comment there would you ever cancel your netflix or cell phone? >> not at all. it's not flying up here because netflix is a story that is a momentum story obviously some euphoria behind it no one's going to cancel their netflix subscription based on the fact that costs for campbell's soup are going up. >> thank you, guys we'll see you in a couple minutes. all the "fast money" action begins at 5:00 p.m. eastern time, about 20 minutes. china and japan could retaliate against the tariffs the president is set to put in place next wk. 'lte y how when we come back iren wailing) (barry murrey) when you have a really traumatic injury, we have a short amount of time to get our patient to the hospital with good results. we call that the golden hour. evaluating patients remotely is where i think we have a potential to make a difference. (barry murrey) we would save a lot of lives if we could bring the doctor to the patient.

verizon is racing to build the first and most powerful 5g network that will enable things like precision robotic surgery from thousands of miles away. as we get faster wireless connections, it'll be possible to be able to operate on a patient in a way that was just not possible before. when i move my hand, the robot on the other side will mimic the movement, with almost no delay. who knew a scalpel could work thousands of miles away? ♪

at holiday inn express, we can't guarantee that you'll be able to contain yourself at our breakfast bar. morning, egg white omelet. sup lady bacon! fruit, there it is! but we can guarantee that you'll get the best price when you book with us. holiday inn express. be the readiest.

welcome back some are speculating if we impose tariffs on imports from china, the chinese might choose to stop buying u.s. bonds. what's the likelihood this would happen and drive up interest rates? what would be the impact joining us now is cnbc analyst ron ensana you think they'd trump treasuries >> it depends how far all this goes if we go forward with this broad, sweeping imposition on steel and aluminum, as larry kudlow was discussing throughout the day, if the trump administration were to risk pulling out of nafta and we make enemies on every trade front, i think any retaliatory action is possible there have been published reports suggesting japan is looking at trump policies even

before these tariffs and thinking they're dollar negative and less inclined to buy u.s. bonds. they're the number two holder of treasuries and i think china could be there as well. >> that's a slightly different rationale if they're looking at their currency and those impacts. if you're telling me that china and japan are going to retaliate by dumping treasuries and pushing up our interest rates, that's going to hurt them, too, right? >> yeah, but it depends on how far this trade war, as it were, goes if it becomes an all-out attack where the trump administration decides to go beyond, you know, targeted and really focuses on broad tariffs that don't really have anything to do with canada, with brazil, necessarily with south korea either, an ally we currently need, it doesn't really affect china all that much, but then moves on to other trade sanctions and has other trade -- even if it goes all out, ron, let's say i'm china and i've amassed huge treasuries to push down my currency, why would i -- but the risk is still

there. there's an effect from everything, so if they dump them, their own currency goes up that would hurt china and the whole point is for them to increase their exports. >> i could point to may of 1987, the japanese in the midst of a large-scale trade war, after they smashed a doutoshiba television on the steps of the capitol, they drove interest rates higher than they were going, it didn't help anybody because it led to a stock market crash in japan took a pretty hard hit as well some of these things can become irrational over time if they go too far. you bet these beggar thy neighbor policies that end up being punitive for everybody. >> ron, it's evan. if you were the -- if you were in the chinese ministry of finance or japanese ministry of finance or japanese central bank, why wouldn't you just over the next few auctions, why would

you just not participate in the next few auctions? >> yeah, you would send that shot across the bow. >> what point are you trying to make by that >> you're just trying say, we have leverage. >> do you have leverage? >> i think you do. >> how much do you - >> by the way -- >> i would say, fine it's not -- good luck if you try to start selling. >> if you're donald trump -- the whole point of wilbur ross going on tv and going about this is basically to say to the world, look, we got leverage. we're going to use the leverage. it's the opening in a game they're saying, look, we have leverage we're going to - >> let's say the treasury yield goes up to 4% as a result, 5% -- >> just so you know, if they make the treasury market, the ten-year move 25 basis points, that's a disaster for the u.s. government that's a disaster. >> no, it's not. >> would you step in and buy that go ahead, ron. >> i would not say 25 basis points is a disaster if rates were to go up meaningfully and the dollar were to sink meaningfully, the debt service burden to the u.s. goes

up rather dramatically as deficits are increasing. the federal reserve is not the buyer of last resort it's shrinking its balance sheet so it's not going to - >> evan just told me he's holding money market funds at 1.6% if the ten-year goes to 3 or 4 -- >> no, you're missing -- >> i'm saying, somebody's going to step in and buy at those levels. >> the point is -- you're saying somebody's going to buy? the biggest holders of treasuries are the japanese and chinese. they're -- >> you're telling me you wouldn't buy that thing? >> the answer is - >> not even that. >> if they're -- >> it's not even that. >> the point i'm making is, they're in a global economy where there's interrelation between trade and finance. there is a complex relationship and if donald trump wants to show for the 3% of chinese imported steel to the u.s. that he's got leverage against china, if i was the chinese ministry or japanese ministry, i'd be perfectly willing to show them - >> and if you were a member of that administration and you realize this is kind of a side show with a tiny percentage of u.s. trade, you're going to

throw the global financial system into crisis because the benchmark instrument -- all i'm saying is -- >> let me follow up. >> donald trump and wilbur ross are making the calculation they're sitting in the white house saying, look, don't worry, we're not going to do anything bad. >> go ahead. >> they're playing - >> michael said if you're a finance minister from china or japan, are you going to throw the world trading system into disarray donald trump is threatening to do that right now assuming he follows through on this. we've seen this in the 1930s that people get very irrational about items like these if they feel there's a war to be had, they'll potentially fight it. >> here's the thing, ron, going back to your opening point my only point is this, if the u.s. says, we're going to put 25% and 10% tariffs on steel and aluminum, is is there not a more effective way for china and japan themselves -- why don't they just say, fine, we're going to double the tariffs on your agricultural products? >> they could do that. >> it's a slippery slope. >> it leads to an intensified

set of battles that's what i worry about is sha slippery slope evan just described. it's not only that look, we have areas through which we can address our grievances it's called the world trade organization and the trump administration is moving towards this unilateralism, wants bilateral trade agreements than a multilateral structures we set up over the last 70 years. if these global mechanisms break down, it can lead to unintended consequences we have an administration that's mercurial in that regard. >> as you and i were talking about earlier, when the eu said they might put duties on harley-davidsons, the governor of wisconsin said, i'm going to urge the president no longer -- i mean, that's all it's going to take it really is it doesn't have to go all the way to this point. >> we'll see ron, thank you for stirring things up. we'll see if they do respond in kind. >> that's all i'm good for. >> no it's a valid point we do -- this is one of the main things people are concerned about. ron insana has more on cnbc.com.

thank you for joining us. markets having a roller coaster week sharon epperson joins us with a few tips on how to protect your portfolio. coming up on "fast money," shares of boeing have been flying high this year, but the air could be starting to come out of the trade carter worth thinks so stick around for his warning signs tonight at 5:00. we just got married. we're all under one roof now. congratulations. thank you. how many kids? my two. his three. along with two dogs and jake, our new parrot. that is quite the family. quite a lot of colleges to pay for though. a lot of colleges. you get any financial advice? yeah, but i'm pretty sure it's the same plan they sold me before. well your situation's totally changed now. right, right. how 'bout a plan that works for 5 kids, 2 dogs and jake over here? that would be great. that would be great. that okay with you, jake? get a portfolio that works for you now and as your needs change

from td ameritrade investment management.

it's been a volatile week for markets making inestors nervous about what this means for their 401(k)s. >> volatility has many investors on edge. and they're worried about the impact on their 401(k) data shows they're making dramatic moves with that retirement money february 5th, the s&p 500

plunged over 4% in a day and net trading activity in 401(k)s was almost 12 times the daily average. that's according to a light solutions, a record keeper for 401(k) plans trading activity got to normal mid february as the market stabilized this week as the market dipped again, we saw 401(k) trading jump again to more than double the average on wednesday now many 401(k) investors appear to do exactly what financial advisors say not to do, they panic. here's how you can protect your 4 401(k) if you're losing sleep at night, your portfolio mix may toob aggressive and you may need to make minor tweeaks. many 401(k) plans offer the option to re-adjust the portfolio to the mix that you set to reach your retirement goal sign up for a managed account. pay a small fee to have a professional take care of it for you. nearly 60% of companies offer

this with their 401(k) plans according to a light now knee jerk reaction is the biggest threat to your 401(k). protect yourself from yourself to ensure that you can reach your time and goals. kelly? >> i think evan got some thoughts >> you know, to me, i agree with what sharon's observation s people do exactly what they shouldn't do the fact that the trading picks up my advice to people is 401(k) money is supposed to be long term money if you're younger, stick it in equities and just let it sit there and 40 years from now -- >> if you're older, you shouldn't be -- you can't -- if you're counting on that retirement money, you shouldn't -- you should be able to sashgs you know what, i just lost 20% in that account and be able to live with that if you can't live with that, then it shouldn't be in equity >> don't you think that is the trickier one, people five or ten years away i don't want to go into a down turn at the moment that i'll realize all this >> so i spoke to a financial adviser today who put it for me.

ted jenkins of oxygen financial said you want to think about your return of principal more than your return on principal. if you're really, really worried. so maybe does it make sense to have a greater percentage than you have right now in a money market fund. you may want to do rebalancing and changing in the portfolio if you're really concerned and close to retirement and really want to make sure that money that you've earned and invested stays there. >> all right sharon, thank you. >> i'm thinking a lot about money markets in another minute or so i'm done with that for the day. >> that's our sharon epperson. will next week be another volatile one for the markets we'll look at the big things coming our way after this. hey, what are you guys doing here? we're voya. we stay with you to and through retirement. so you'll still be here to help me make smart choices? well, with your finances that is.

we had nothing to do with that tie. voya. helping you to and through retirement.

feel that? that's the beat of global markets, the rhythm of the world. but to us, it's the pace of tomorrow.

with ingenuity, technologies, and markets expertise we create the possible. and when you do that, you don't chase the pace of tomorrow. you set it. nasdaq. rewrite tomorrow. we are keeping an eye on this major storm currently barrelling down on the east coast. snow, wind, very difficult driving conditions by the way, it's already knocked out power to 1.6 million homes and businesses amtrak just tweeted it has canceled all service along the northeast corridor until tomorrow according to flight aware, more

than 2,900 flights have been canceled in the u.s. today nearly 700 of those at laguardia. you have a relatively easy commute. >> i want to know what subline there was where the tracks were flooded. >> h hoboken is flooded >> i would not fly to laguardia feen i were flying right now i'm just saying, it's kind of -- it's bad out there >> i know. it's going to get very windy here more power outages >> bob was telling me he was hoping to get on amtrak around 5:00 to head out >> bob, godspeed we wish you luck the supplier of generators always goes up in situations like this when we realize, i should have one of these. >> that's what you get for living in the boonies. >> exactly >> let's talk about next week some of the things headed our way. the payrolls report on friday, i mean this puts us on everything happening with washington. but if that wage number is not 2.9%, if it's higher, huge

story. if it's lower, huge story. it just means that this is what the entire move in the -- >> it's weird. it is a big deal and i think though there will be other things that will come into play before then largely with this -- you know, either by wednesday of next week, theernlg tariff thing will be kind of like, you know, they'll have massage things politically >> maybe >> or it won't be. but i would say that it could be very volatile next friday depending on both the tariff and the wages. >> what is your get feeling on what happens with the tariffs? >> my gut is that trump this weekend people stay the ahome, if you want the stock market to be down 2,000 points next week, then you come out strong on the tariffs things if not, let's finesse a way out of this where we can save face >> i think there is a tremendous amount of concerted pressure being brought on him by business people trying to say let's not do this right now. but i don't know i really don't have a feel for how it plays out >> the weird thing is he's the

one tied himself to the stock market in a weird way. there is kind of -- he's getting and come uppance here in a little bit >> unless he decides that was true then and something else is true now >> or the nasdaq takes market up 5% next week and netflix goes to $400 >> you know, aluminum, what does it have to do with netflix >> "fast money" begins right now. >> live from the nasdaq market site over times square, eye brian sullivan in for melissa lee. welcome, everybody here are your traders tonight. tonight on "fast," one of the hottest stocks on the market boeing, showing signs of cracking one trader says it's about to get worse. plus, stocks come under pressure this week. bitcoin soared now trading back above $11,000 and bk says the crypto could emerge as any trade war. he'll explain why. first, we start with reall