good morning it's 11:00 p.m. in beijing it's 11:00 a.m. on wall street and "squawk alley" is live.

good tuesday morning, welcome to squawk alley. here at post nine at the new york stock exchange. china has initiated a trade war, violated the rules of the market this, after the president issued his own statement saying i directed the united states trade rep to identify $200 billion worth of chinese goods for additional tariffs at the rate of 10% these tariffs will go into effect if china refuses to change its practices and also if it insists on going forward. for a closer look of what this means for the market and what it might mean in the days ahead saying it's almost a war of choice, as you put it, in your words. >> that's why i think there's been so much friction with the investment community, ceos every time we get one of these new

salvos in the trade war. if you focus on wall street and the big companies, they say we don't think trade with china in this way is necessarily the first battle we ought to be fighting at the moment maybe that's also the why, broad ly, the market has been able to localize the damage when it comes to the impact it's likely to have as we try to project ahead the next moves obviously industrials, materials are t"the biggest loser"s today bow boeing is right in the crosshairs and is dragging the market down. the market is less than half the loss of the dow at the moment. some stress in emerging markets. the worry is that it gets exacerbated. it's a pretty off-risk day you're seeing the nasdaq down, treasury yields go down. the dollar is up we'll see if it's a quick reset

because the market has seemingly been craving a little bit of a pullback or if, in fact, the rhetoric keeps up and we get another exchange of china retaliation and it becomes a driving story as opposed to what i think it has been so far, more of an annoyance and distraction for big investors and ceos. >> again with these trade war fears. i think it's important to keep in mind if you're talking about names like boeing, caterpillar, 3m, these other industrials that are getting impacted by these headline headlines. >> exactly, morgan matter of fact, it wasn't too long ago -- really just a few months ago i was out here saying, oh, yeah, it looks like the market is up big because the dow is up 250 but it's really just boeing or these other industrials. it is a give back of some of the stronger areas banks are not doing well

no one really thinks that banks will be directly impacted by anything going back and forth with china it's a july kind of mood shift that says maybe we have to kind of consider the fact that the yield curve is flattening and again we have the sense that maybe the best of growth momentum for the world has passed once again, just a 1.5% off the recent highs we traded at this level just about at yesterday's open. it's not just a washout just yet. it's more of a trimming of risk appetites at this point. >> we'll talk to you in a little while. mike santoli on the floor for us the nasdaq sees its biggest drop in nearly two months managing partner, obviously long-term focus on china and mike mchugh, co-founder and ceo, former twitter board member. good to see you both. >> good morning. >> impact on tech. where do we feel it first, semis, cross border, m & a,

something else we haven't considered yet >> during the recent development, you see zte stock in hong kong drop down a lot when there's a trade war going on, it will be affected. you can't produce any equipment. you don't have the chips across the board in m & a, you see they tried to invest and buy companies in the u.s and both the chinese government and the u.s. government is putting a hold on that for different reasons. we see slowdown in both areas for sure. >> do you think by a certain point this year, u.s. says china, you may not buy a u.s. company, at all? >> that could happen but with the current administration, you never know and i think the impact on tech stocks is limited, in general. you look at the e-commerce company, amazon or alibaba, they're not as affected by this. they can buy from other countries.

it doesn't have to be in the u.s. japan, china, korea. unfortunately what's being hurt is the american brands. >> mike, i'm wondering how this reverberates for you out in silicon valley granted you're dealing with more of the content platform environment but more and more chinese start-ups are innovating, building out their own media platforms to some degree there's a competition on the technology front for talent and mind share is this tariff and trade battle having an impact where you operate? >> no, i don't think so yet. i think that this is a short-lived situation. i think between now and the midterm elections this will mostly get resolved. i believe that's going to be the case i think a lot of other people in the industry think that as well. if it gets prolonged it could, overall, impact the ad industry, which would be bad for everyone. i just don't think this is a sustainable, political situation. if you look at the republican

party and what they're really hanging their hats on for the mid terms, it's all about the economy. i think that ultimately this is going to end up getting resolved between now and then. >> hans, to go back to the point you made about chip stocks, what does this do for qualcomm's purchase of nsp? >> i think qualcomm will continue to do what it needs to do and the chinese government, obviously, is putting more scrutiny on this we see a lot more turbulence the next few months of government being involved we're an investor in footboard as well and we want to see the u.s. company doing a better job of expanding its chinese market and in this current environment that makes it harder to do that. >> josh lipton is at apple. >> reporter: mainland china is

critical to apple's success. company doesn't give us hard numbers on that country in particular but estimates of about 15% of annual revenue apple, of course, has vast manufacturing operations in china. most iphones, remember, are assembled there and shipped around the world apple ceo tim cook has made china a real priority, making frequent visits, making big investments in companies like ride hailing giant didi. he has been talking to the trump administration, impressing upon them that trade wars will hurt the american economy the administration has told cook it wouldn't place tariffs on iphones. apple declined comment on that report but it's consistent with what cook told cnn earlier this month, saying that i don't think iphone will get a tariff on it, is my belief, based on what i've been told and what i see i just don't see that. munster says china would want to be careful about socking it to

apple here after all it's a big employer over there, with more than 1 million chinese working in some way on apple products. china has used apple, in the past, as a weapon retaliation. they did delay approval of the iphone 6 apple execs interpreted that as a retaliation of obama aes administration's inindictment of chinese hackers. the last thing they want is a trade war ahead of its next big iphone launch, which we expect in september. >> josh refers to this new york time's piece that does a bit of a tick tock between cook and the president where he consumers would pay for these tariffs imposed and the trade deficit is not as large as the administration advertises. >> that's completely right you look at the trade deficit average iphone costs $500.

importing from china into u.s. counts 100% into $370 billion deficit. $150 goes to samsung, south korea. 250 because, you know, each iphone is over 50%, goes to u.s. and that's hurting itself. >> this is what joe tsai said in code a couple of weeks ago. >> exactly. >> what do you expect to happen in the flow of money in tech between the u.s. and china jd ceo saying we've been planning to make some u.s. related investments this year. >> yes. >> but is now delaying that. on the other hand you have google putting money into jd, which is money into china. as these tensions increase, margins, perhaps, get impacted with what happens in the supply chain, how will that affect the flow of money? >> we actually work with alibaba and hope they can do more things in the u.s in the current market you see

more hesitation on both companies as a result. that's hurting american business because that's companies that could be putting money here to help with import/export a lot more and making trades better. that's been a hold pattern the second thing that's interesting is that google is investing in jd and google is not in china, but through jd is getting the upside of e-commerce growth in china. at the same time was worried about amazon now it helps google to figure out how to do its job better in the u.s. and elsewhere we always say politics is localized. local elections and so forth but the business model is increasingly global. >> mike, looking at the nasdaq, it's still up, double digits for the year even as the dow turned lower today. does tech and these big software companies in the u.s., does it make sense to keep investing there if you do want to be

defensive? >> yeah. i think one of the macro things for people to understand is that this is really still early innings for two major transformations that are happening. the global advertising business and global e-commerce. this is a huge opportunity where we're really just beginning. if you look at the ad industry, there's about $600 billion a year that were spent only $200 billion of that has moved to digital and even less, half of that or so is now mobile so the opportunity in digital advertising remains absolutely huge you'll see new companies here. also -- and hans is very familiar with this you're going to see a massive increase in global commerce. i think we are just getting started on that front. these two worlds will be very connected to each other. these two massive new parts of

the industry so i think we're in early days and, long run, these stocks, as well as new companies, have a very, very bright days ahead of them. >> mike, hans, thank you guys. we all try to make sense of the interesting world we live in appreciate your time thank you so much. >> thank you. >> live to cannes with a cnbc exclusive with the ceo of hulu m & a and the battle for fox plus, tesla, what elon musk is doing to get to the bottom of a possible employee sabotage

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cannes lion happening now in cannes, france andrew sorkin is live with the ceo of hulu. >> thank you we are live in cannes and have the ceo of hulu. whether you know it or not hulu is one of the crown jewel in what is perhaps the biggest media battle of world between disney and comcast, all vying for 21st century fox's assets. you're one of those major assets you're watching this and thinking what? >> the key for us is to focus on business if we want to continue to be

valuable to whoever ends up with a majority stake we have to get about our business, adding subscribers, keeping those subscribers and delighting them with the best content and video experience possible. >> do you look at the different potential suitors as, by the way, different parents and think one is a better outcome than another? >> no, i don't think about that at all even if i did, i probably wouldn't announce it here either all of our owners have been incredibly supportive over the years. disn disney, fox, nbc and even time warner, now at&t, have been incredibly supportive. >> let me ask it in a different way. >> okay. >> would it be better to have one owner? you have multiple parents now. you have to serve multiple masters, i imagine you buy content from a lot of these different parents. if there were only one would it be easier for you? >> i don't think so. the best thing we get from all of our owners is the vast amount of resources we have the amount of content both they make and put on their networks

and make available to us, the support they provide, the marketing opportunities. look, i don't know if one owner would be better than three or four but what we know today is that we have every opportunity to drive our business forward and be right in the middle of where consumption is going everybody talks about ownership in this. reality is that consumers are moving in this direction in record numbers every day and we're here to take advantage of that movement. >> strategywise, right now in terms of buying new content, either from your parents or new contact creators coming with shows, has this period of uncertainty created any kind of con conundrum for you? do you feel there's any sort of pause until the dust settles if you will >> i don't we've been able to launch castle rock with jj abrams and stephen king we purchased little fires everywhere, which is produced by reese witherspoon and carrie

washington we're making more originals. we acquired library content. quite honestly we've been blessed with riches of the resources of all of our owners and i think a friendly environment for curators that our organization continues to drive forward. >> do you want more money, though, to be able to spend on content when you see netflix out there, spending $8 billion >> i think it's how you spend that money that is really important. we're not going to make 800 shows. next year we'll probably make 20 or 25. it's important to us to make big, impactful shows that delight our customers that are relevant and entertaining and have cultural conversations going. we've been incredibly blessed and luck which handmaid's tale season two is better than season one and we're looking forward to season three we've been incredibly lucky to focus on our business of growing, which we've been successful at, and doing our

best to keep them? >> what are the ramifications of the at&t/time warner merger? >> time will tell as that shakes out. clearly they'll have a tremendous amount of customer information and how they start to transfer value from one place to another i think they already offer some directv now opportunities. it's an incredibly competitive environment for live tv as well as the on-demand service and think it will get more competitive as more people get into the market. >> at&t -- not at&t. apple announcing a deal with oprah winfrey. you read that headline and thought what >> how did we miss out no apple is a tremendous company. oprah is a tremendous talent i'm glad they were able to figure something out i also wish it was us that we were able to do something. >> what do you think they're going to be able to do >> that's a better question. >> what do you think it does to

discovery, given that they own own? >> that's a better question for apple and discovery than it is for me. >> okay. >> look, talent should never be underestimated oprah is an incredible talent over a long period of time i'm sure she'll create a lot of value for apple in that process. >> the world cup, obviously one of the great big sporting events in the world right now what do you think about live events, live sports ultimately on streaming >> we think live adventure incredibly valuable. if you look at the biggest events are best on hulu, something we like to do. live subscriptions are up 50% week over week since the world cup started. we're seeing a big uptick. >> where do you think the big sporting rights get acquired by the hulus and apples, when is everyone jumping into that pool? >> amazon has bought some things already. twitter has been in the market before as we ultimately get enough customers we'll compete for the

best product that will engage those customers in the biggest and best way hopefully, hulu will be right at that table. >> this is a marketing and advertising conference you have multiple services, but you have a service that includes advertising in a fully paid service that includes no advertising. by the way, i was the cheapskate that started with the advertising and then upgrade long-term, do you see more people doing that or where do you see advertising and the role in your business >> for hulu, advertising can be a strategic advantage. you really have to flip it, though, and come back to, yes, we offer choice for a no-ad environment. then you have to get back to in the ad environment you have to bring the customer something of real value we're not locked into a real format we have half commercials today as linear tv that's not a format we're locked

into we can explore how we better target and address advertising, how we better work with brands to bring the communities who love shows a better way to connect with them. >> randy freer, ceo of hulu, thank you. >> thank you. >> come back when we find out the outcome of all of this. >> be happy to. >> it's bright out here i have to put these on. >> generally sunglasses are foreboden on live tv. >> i know. but it's bright. it's bright. >> i know. great interview with the ceo of hulu so many headlines embedded into that and the least of which not how did we miss oprah. >> that jumped out. >> also being judicious about choices. does he wish he has as much to spend as netflix going to make 25 shows, wants them to be big how does he pick those shots interesting mind-set into the

mind of a media executive in this changing time. >> very much so. we did get breaking news on trade. let's get to kayla tausche for that. >> peter navarro just wrapped up a call with reporters where he called the president's response and furthering of the administration's tariffs visionary and courageous he affirmed the white house's view that china has more to lose than the u.s. in a trade war the council of economic advisers will work together to choose a product list within that $200 billion or $400 billion response that will be the most effective in fighting back against china i asked how they plan to limit the impact on consumers because the previous list of tariffs had sought to eliminate televisions or pharmaceutical products to limit the impact on consumers. he said the fact that this tariffs set would be 10% versus

25% tariffs is a move to try to limit the consumer impact there. perhaps most interesting, though, was his commentary on where talks go with china from here he said there's nothing planned, that the u.s. has two priorities in talks with china. number one, to cut the trade deficit and, number two, to protect the intellectual property that he continually called the crown jewels of american business. he said china previously made overtur overtures on the former. u.s. goods over three to four years. as talks progressed, the chinese offer continued to shrink. the u.s. was not satisfied and they never made a concerted effort to try to fix the ip problem. that's why we're here right now. there are no talks with china planned but the phone lines are open carl >> really quick, kayla, got much clarity on exemption for apple iphones? >> he did say that he had no knowledge or intel on whether, in fact, the president had told

tim cook that iphones would be exempted so, we'll have to do a little bit more digging on that. >> kayla tausche, what a busy morning on her beat. thank you, kayla >> as we go to break, we're watching the trade fallout in equities dow down 310 china had a very rough session overnight, on pace for its ninth straight daily loss, first time it's done that in a couple of years. day after calling for space force, what the aerospace agency is saying about the president's galactic ambitions ckout... ...down-alternative pillows... ...and of course, price. tripadvisor helps you book a... ...hotel without breaking a sweat. because we now instantly... ...search over 200 booking sites ...to find you the lowest price... ...on the hotel you want. don't sweat your booking. tripadvisor.

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welcome back to "squawk alley. establishing a, quote, space force as a sixth military branch we're joined by axiom space ceo where he was at the conference where the president made those comments thank you for joining us post

nine today. >> you for having me. >> as somebody who was in the room yesterday, your takeaway? >> national space council, in general, has been a very effective tool since they stood it up. it was great for the president to come and show his support for what we're doing of course, there were a couple of big announcements in there. the big was the space force idea the other is near and dear to my heart, his push to have his administration commercial in lower orbit. it was a great day in general for us. >> i want to get more into the commercial push and also into what axiom, your company, is doing in and the vision there. >> what is your thought on the idea of establishing a space force? do you think that makes sense right now? >> i think -- i'm no expert. i'll say this just so we all agree that's where we're

starting as the air force and military starts look at what it takes to operate in lower earth orbit and protect assets in lower earth orb orbit, which are critical to our success on the military, everything they do uses satellites i think it's important to have a focus on that. and i know u.s. air force does that today but it could be getting so big that they need to focus a branch on it. that seems to be what the president thinks. >> in terms of commercial space, today is day two of the conference one thing they're focusing on is lower earth orbit and commercialization of international space station and future of iss. you spend time managing that project and now axiom is looking to target space station technology tell us a little bit about that. >> our concept is exactly what you said we would like to build a commercial capability in lower earth orbit so that both commercial entities, private

individuals, governments can procure time on orbit instead of simply own the infrastructure. the idea behind what we're trying to do is build a space station that starts at the international space station, allows the transfer of existing research and manufacturing to occur in an orderly fashion so that when iss is ready to be retired we can just keep growing the market what will have grown on iss at that point could be transferred over we separate, iss can be retired and we continue on with the research and stuff going on in orbit. >> where do you think the blind spots are for investors? there's so many different things that people are looking to invest in spacewise. are there areas that are, perhaps, being overlooked or underfunded? >> well, i think investors are certainly much more -- much higher risk takers than the rest of the community of companies

and governments. so in that respect, i have to give them a lot of credit. they're very into what we're doing. you see the investments in alpha centauri if you take a really long view you can imagine there is one there. i don't think that the investment community is particularly risk adverse. i see a lot of interest. there's a lot of interest in what we're doing, even the level we're at today we want to attach to the international space station and that capability to compete has been drug out a little bit with the government they're working it, but it's taking a long time in spite of that, investors are look at us and saying maybe we want to invest anyway. we have a lot of faith in what you're about to go do in your company. i think the investment community looks at this a lot different than typical industry does and the governments. these guys are betting on a business case that's not obvious to you today but the internet

business case wasn't obvious to us when the internet was created either. >> you also just launched this opportunity for space tourism in lower earth orbit. $55 million a ticket as all of that develops we would love to have you back on to talk about it see what that interest is like. >> we look forward to that. >> michael suffredini, thank you for joining us. >> thank you for having me appreciate that, morgan. let's go to dom chu back at hq with the european close. >> european stocks off their worst levels of the day. still mostly in the red, as you can see with this map behind me here, all on worries about escalating trade tensions between the u.s. and china germany and france showing the most weakness. autos are weighing on both markets. you can see there down about 1% and dax in germany down about 1% now volkswagen, renault, peugeot

and daimler all down audi executive has been named as the interim ceo there. mi miners also the biggest drop this, amid all those trade war concerns here. it could reduce possible chinese demand for certain metals. as apple shares decline in the u.s., european suppliers like asml, dialog all showing some impact and stock story related to earnings down sharply after posting its third profit warning of the year, british retailer citing

heavy discounting by competitors. shares in debenhams down about 11% here. >> dom chu, thank you for that. let's get to contessa brewer for a news update. contessa >> demanding that the trump administration end a zero tolerance policy that's resulted in thousands of children being separated from their parents 21 states prosecutors sent a letter to attorney general jeff sessions and homeland security chief nielson. the u.n. is criticizing rich countries for ignoring refugees. up 3 million in just the past year. >> governments have projected an image of emergency, of invasion and many political leaders have

capitalized on that to gain votes. they've built fear, to build their electoral basis. i think this is despicable and irresponsible. russian lawmakers draft aid bill imposing a fine of 160 bucks against anyone who criticizes the national soccer team they insist the planned law will protect the honor of the country. i bet you a lot of countries think about doing that cnbc news update this hour back to "squawk alley" now carl >> thank you, con tessa. down 314 session low down 419 we'll continue to track the big moves in a minute. don't go away.

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soon there will be tariff troubles for apple iphones in china. that's a commitment that trump made to cook "new york times" tech reporter isaac and managing partner juli julian mantis to talk about it mike, you know as well as anyone that apple has had trouble in china at certain points. the government appearing to slow their momentum benefit, perhaps domestic companies

even if there's no tariffs out of china, there are ways that apple could get caught in the crosshairs here. >> as we read in the "times" report, tim cook is doing something really smart, which is essentially getting in front of president trump to say this could potentially harm our business we don't know how the chinese will retaliate here but any sort of back and forth between the trump administration and the chinese government has the ability to hamper iphone output. in 2014, we had in that story, in 2014 the obama administration went after chinese hackers and that he retaliated by slowing down approvals for iphones in china. there's probably different ways that the government could go

after apple and this time tim cook is trying to get ahead of it who knows what's going to happen really. >> julia, your thoughts on how this affects, i don't know, the investment environment as you're looking at where it's safe to invest, how much. >> i think there's a problem with how we're viewing investment there's a confusion between a competitive advantage and free trade and fair trade there's also this problem we're seeing between free trade versus fair trade we do in the investment community feel it is a positive thing to start implementing some fair trade policies. but what does that mean? if we start to create this path of pure protectionalism, i worry that it will -- global recession will have a tremendous, obviously, impact across all markets. what's happening at apple, we have to remember apple is really -- they sell more iphones in china than here in the united

states so, 20% of sales in mainland china is -- represents 20% -- main land china sales represent 20% of the revenues, 200 billion revenues of china, of apple. i think we're not realizing that this is a slippery slope i think this say slippery slope. investors are keeping an eye on this but this pure protectionalism path is very, very dangerous this confusion between the competitive advantage and the fair trade is a dangerous one, and trump is walking it. >> how crucial is the ip piece of this puzzle we got comments from navarro a while ago, talking about how important stipulations from china on intellectual property protections are. >> it is a very big piece. we worry about this all the time we worry about even having chinese investors in our funds because we're worried about that exposure our companies are tremendously

frightened of any type of vulnerability on that front. but you have to understand, tech companies are very nimble. and i think they can get other -- they can supply and source outside of china, like in vietnam. so if apple had to pull out of china in terms of their manufacturing, there are alternatives once again -- right? >> how long would it take? >> it would take. >> years and years. >> completely. and we're going to take a hit. apple will take a hit no matter what and tim cook is swrufed in being very, very concerned. >> want to talk a little tesla as well. ceo elon musk sending an e-mail to workers saying an unnamed employee engaged in extensive and damaging sabotage and he is investigating if the employee was working with any outside organizations. jillian, it's a curious thing to see, given -- i don't know if we've seen police reports filed based on this. there's so much attention around

this stock. >> elon musk is not an alarmist. he is very practical he is very pragmatic i happen to know that. we have to really take this and understanding the transparency of sending an e-mail out and announcing this is a very positive step for elon musk. if you're going to -- you can't really do apples to apples here. if you look at what facebook is doing and what travis did at uber, they kept everything inside that was even more of a danger he is going out and saying to all of his employees, we have a leak we have a problem here let's all work together. when 40,000 employees, 99% of them are great, 1% of them might not be so great, that's not bad. that is noth going to -- this is not going to take -- it's not going to hit the company as uber got hit and facebook got hit

i think he's taking a proactive approach and i commend him for being transparent. >> mike, comparison to uber there. what's your thoughts, embattled at least in his reaction to shorts. >> totally i think -- my read on this e-mail is like one of these dangers for these companies, uber, facebook, when people stop believing in the mission and you're essentially doing the right thing. elon for some of his shortcomings and rantings on twitt twitter, last week when we saw them doing layoffs, there were employees on twitter who were laid off and still believed in

the mission and said my layoff is actually a good thing and positive for the company that culture is hard to instill. it's still a cult of personality a lot of times if you can put out this memo and say it's us against these people who want us to fail, that's how you instill that loyalty over time. >> right maybe it's a little easier when unemployment is below 4% mike isaac, jillian manus, thank you. >> absolutely. costco, highly coveted retail spot. averages way off the day's lows. "squawk alley" continues in a minute alerts -- wouldn't you like one from the market when it might be time to buy or sell? with fidelity's real-time analytics, you'll get clear, actionable alerts about potential investment opportunities in real time. fidelity. open an account today.

let's get to the santelli exchange with rick good morning, rick >> good morning. i would like to welcome my guest. matthew, thank you for taking the time well, you know, i'm holding your book magic bean, the rise of soy in america. and i'll tell you what, i read it this weekend. really enjoyed it. i have enjoyed a lot of beans at my time here at the board of trade. but the real issue today, in my opinion is, how will the 25% tariffs and how escalation on both sides ultimately arrives at various percentages of tariffs, how will it affect farmers and soybeans i would like to have your answer to that, matt.

>> well, i mean, it is hard to predict fast-moving current events, but there are parallels in history most obviously, the 1980 embargo or boycott of grain to the soviet union, which i describe in the book, ultimately as being a game of musical chairs by that time, brazil had emerged as a major soy producer. so they basically sold to the soviets and we took up the slack with their customers so it was kind of a game of musical chairs with plenty of chairs to go around. >> absolutely. now, let me stop you right there, matt. let me stop you right there because that's a wonderful example. two things happened and i remember both quite well, brazil now exports more beans than we do so we really put brazil, to some extent, argentina on the map by that embargo the second issue i want to

discuss right now is the musical chairs, i call it subs substitution global demand is x for beans and the other is y they go together, do they not? >> i believe so. >> having said that, i'm not saying it is logistic, but musical chairs is appropriate here how could that play out with regard to the damage to the bean farmers in the here and now? >> well, i think it's -- ultimately depending on the demand in china. if they maintain that level of demand, perhaps they will just import, ultimately import beans at the higher price. though i should point out that will also have some effect on the american companies, as in the last few years, much of the

soybean processing yesterday has actually moved to the ownership of the american companies, like adm and cargill, as well as international companies. so it is hard to predict exactly what that will be. >> matt, we're going to have to leave it there but the point of the story is, it's going to be rough to move around contracts and get different export receipts all situated but the damage, as much as it may be, really can be mitigated a bit by just musical chairs as to who they're buying it from, that isn't us, those customers now become our customers matthew roth, i thank you. john, back to you. the dow is down 260, about 1% s ckn k allie" iba ia home

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the market is catching a bit, at least relative to the session lows down 419. transports, one of the worst days in a few weeks. >> absolutely the worst performers today every dow transport is in the red today on trade fear wars and the commodities are taking it on the chin when you look at what is leading to the downside, names like fedex with reports after the bell user names that have a lot of exposure to the transpacific trade activity. >> and you know who else is having a bad day snap we just had evan spiegel on yesterday, but cohen cut estimates and the stock is down

7% this morning. >> twitter is one of the big s&p losers as the squeezes get unwound. netflix, don't tell netflix the market is having a hard day. they came within a buck and a half on 400 of new street high targets for the day. so we'll pay attention to that oracle tonight along with fedex. let's get to the judge welcome to the "halftime report." i'm scott walker the top trade this hour, the battle with china undermines the rally. here to debate that, joe, josh, steve and pete the dow is up for the sixth straight day of losses pete, feels like here we go again. the wall street said the market is starting to take the trade war more seriously that's what we're faced with now. >> it sure feels like that, but also, scott, we have seen this time and time again before actually, when we saw the volatility come back into the market g