>> my final trade is micron. they reported their quarter and did great quarter and great guidance i like micron. >> adding the walmart, costco and target, those are names you can buy and these gentlemen at 1:00 got a killer tie going on >> that tie starts right now it is a killer >> stocks are tanking as president trump is doubling down, he's planning to block china on investing in u.s. tech firms. are we heading towards a major correction the fallout for tariffs. harley davidson expects the cost to spike the stock is getting slammed we'll talk about the road ahead for h.o.g. the best performer this month, does that trade have to keep going? "power lunch" starts right now

all right, welcome to "power lunch," i am the guy with the tie, tyler mathisen, trade tensions heat up at this hour. the dow is dropping, since early may and today's losses all the gains of june is gone and out of here the dow is moving closer to correction territory once again. 23,955 is the level to watch there. wall street so-called fear index have spiked. the vix hitting its highest level today. the five ye-year or two-year hitting its lowest levels. utilities, defense area, of course, tech and consumer discretionary, those are the worse performing s&p 500 sector right now. >> let's go to bob pisani at the nyse

>> hi there tyler, there is several attempts to rally at the bottom all of them failed are in another attempt to rally of 12 or 14 points above the s&p of where we were an hour ago. the usual suspects, industrials and materials had been notably on the downside all throughout the day. here you see the big materials name and all the steel stocks and the big industrial names and transport and a lot of logistics and ch robinson and fedex and caterpillar and boeing the two most common names then we have the other problem, the big momentum names you know what's been moving the markets all year the fang name and the seven conductor name all of them are having problems today. you see semis like this and i have not seen these kinds decline in several months and you have the big momentum name

outside. i call them big fang plus names and netflix you see there, too but also companies like allibab or twitter, i call them fang plus, these are big momentum names and start to get out and you see the volume picking up there. semiconductor have been fantastic throughout the year. they really topped out about march sometimes, this is the last couple of days of notable decline as you can see there big semiconductor names. talking about momentum and material names having problems, guys, back to you. >> bob pisani, thank you, today's big sell-off sparked by president trump latest tough talk on trades and tough talks of europe as well. cayla tausche is joining us. >> reporter: we are expecting with the nbc director larry kudlow is back in office, principl principals are planning to meet to full-timize these restriction

that is are intended to target china. they'll be working out the percentage ownership that'll encapsulate the investment that'll be reviewed. the scope of these restrictions considering that congress has legislation pending and people who are briefed on the plan expected to be implemented in about a month without a common or hearing period for companies that could be swept up in this they expect to target specific sensitive investments in u.s. technology the treasury secretary earlier today tried to knock down reports that they are targeting china saying that those are false and fake news reports. the statement will not be specific to china but will target all countries that are targeted or trying to sale u.s. technology meanwhile u.s. ceo, multi national ceos that were in china last week for a meeting with president xi, we are told that china plan to punch back in a

big way. urging the ceos not to go backward to isolation and flexibility and protectionallism among those ceos who were present, the ceo of pfizer and ups and goldman sachs, we'll see how china plans to hit back right here guys, back to you. >> kayla, thank you very much. the dow is breaking below its 200 day moving average and about a percentage point of being back from correction territory. is this where we are going again into correction territory, maybe some where deeper? let's bring in michael, good to have you with us

michael, one would have to give president trump a fair amount of credit for improving generally the business climate and business sentiment in america so far. you point out that the real worry over trade tensions may not be so much whether it shaves o one-tenth or two-tenth of a point of gdp what does those tensions do for business sentiment >> no question, tyler. probably the moment president trump was elected a year and a half ago, markets started to rally and came as a great surprise to many market watchers they have continued to rally as regulations have fallen and interest rates have stayed low and president have met any number of his campaign promises. the business environment and the business sentiment have been very good but i think if you look at what happens on wall street of the 15th, which is one the president announced

additional tariffs of $50 billion tariffs on china that begins a tic-for-tat exchan exchange the industrials are down and 6% in that ten-day period we have seen the broader market fall 4% over the same period so while you know washington may call this a trade negotiation, wall street is saying it looks like a straight wall we don't like it >> is wall street really saying that, yes, the market is down but what kind of economic low down or chunk of economic growth is wall street pricing here as a result of all the trades back and forth tariffs. >> that's unnotable. >> i will tell you in talking of purchasing managers at various companies, they are preparing for a trade war. they are always preparing for the worse. my contacts in d.c. and i was up

there recently tell me there is not going to be a trade war and something is going to be worked out and china cannot hit for tac with the u.s. because they don't buy that many goods in the u.s >> michael, let me turn back to today's news or reports that there may be some impediment and viceversa, does that explain why the nasdaq is down as much as it is today more than the dow and s&p and quite a little standard there and down by 2.3%. is this in any way a time to get in and buy technology? >> tyler, i think no, it does not explain, you know point for point because you can't do the math and make it work out. your first point earlier and as you began the interview was spot on it is a shift in sentiment we know a lot of the psychology of wall street defines whether

we are heading in and out the door there is a new cloud of fear will it last, we have not seen any one of those downward prints taking over yet. is this enough of a pull back over a few days to actually stepping by and maybe perhaps carefully, you have to look at stocks like netflix that are up over 110 or 15% since january 1st. we have seen remarkable runs in these stocks and it is hard to get them down a few percent and think they are cheap >> another good run, certainly domestically exposed or protected from some of these trade protections. breaking down today, dow 1.7%, is this still a save hide out? >> yes, i was on the phone with amy zang, i think it is up about 2% today and still a good place to be.

there are rumors circulating and washington, d.c. of a shake up and general matt mattis generalo be sideline. >> one of your picks, michael, is fedex, why do you like it here >> fedex have had a tough year, they're looking still for 11% to 15% growth year over year. i like to buy stuff that has not done much and j.p. morgan is another name fred smith is as optimistic as he ever ben. been. i think fedex makes sense. >> michael and jeff, great to always see you and thank you for the conversation >> thanks. >> a big sell-off on wall str t street the dow is down 36 0 points

the biggest companies of boeing and mcdonald's the impact of trades on your money is coming up on "power lunch.

welcome back to pur"power lunch. stocks are having the worse day. right now we are all session lows but still down 100 points president trump hitting

investors confidence the president plans to block more tech exports. is this a good strategy to bring both sides to the table or is it going too far, or could push the u.s.nto an all out trade allan, it is always good to check in with you. it is hard to find someone who has done economic thinking who's supportive of the president's action on trade, why are you >> sara, i have to say that it is because the conventional wisdom on u.s. economic relations with china going back to the early 1990s when this current phase of tremendous trade zr also investment expansion with china trying to began the conventional wisdom on how it turns out has been completely long and could not have been longer

the expectation is china would become freer and easy to deal with regarding national security considerations, exactly the opposite is happening on almost every front to the point where this country now is faced with a rival, the likes of which it probably has not seen before in its history and arrival whose rise have been largely -- and encouraged by the administration >> is the president and the treasury right to go after technology investments from china in this country? >> every country is interested in looking at american's technology and not just the chinese. of course the chinese are taken special attention to it. every country is and putting every country in close allies of ours the transformation of china and

some of it good and some of it bad and the past 25 years have been pretty clear. there are some companies in china that are trying to do the right thing when they invest in the united states and certainly setting off that and will have enormous consequences for american firms and in a particular american technology firms. we are shrinking the pool of potential investors in american companies. i think back to 11 years ago, we approved the lenova transportation of ibm's think pad business which is gone really well for everybody involved in the united states for the united states and lenova and workers and people interested in having great la laptops to buy that transaction has zero chance of getting it down today and nobody trying to finance that transaction and try to it giving it with some new directives. you think china is unrepented

and b e unchangeable am i getting it right? >> that's exactly right. in this respect, i would fault president trump for not remotely adequately explaining to the american people the stakes involved i would award him for these steps of chinese investment and there is also legislation by the by the way that's been sponsored by senate yore rubsenator rubio capital to the chinese technology sector. i would wish that his china's economic policies have been focused more on steps like this which would achieved the very

important goal of strategically disengaging ing country. >> what would be your marketing campaign if you put in charge of the trump's administration marketing campaign for chinese tariffs, what would you say? how would you sell that to the american people? >> we need to stop feeding the beast. >> simple. >> tony, and allan seems to clear an economic cold war >> we are in a trade and tariff war with china and the rest of the world. >> we have been in a trade with china for 30 years now, we have not been engaged in it >> we have done well in it >> have we the belief that we have failed in our come pipetition with chis flat out wrong >> let's be clear, if you are an american firm that has to compete globally against other firms that are competing gleblly

and you want to shut them off from china as a market and a source for components then you are putting an anchor -- so there will be a tremendous opportunity that opens up. >> we are continuing to grow >> you guys are talking at the same time. sorry, i can't understand either of you tony, why don't you go ahead >> the myth of hollowing out of american manufacturing, it is exactly what politicians have sell voters and why voters have come to a lot loose faith in it and not because we have industrial power housing we continue to be in the face of

arising china and other rising country in east asia it is a miracle how well >> allan, even if your points are valid and there is reasons for the u.s. to move to block intellectually property thefts and a number of unfair trade practices. we leave in a global connected world at this point that what you are going to see is unintended consequences like harley davis is moving production to europe to avoid getting hit with tariffs or air bus getting the next contract out of china instead of boeing >> sara, first of all, let's look at harley davidson's story real fast. davidson said it would take nine to twelve months to relocate some production. that tells me big manufactures like harley davidson have become very in-depth responding quite effectively and efficiently when

various foreign governments race trade barriers and they have been doing this for 25 and 30 years in response to trade barriers erected by much more weaker economies than the united states and they're going to adjust they're good at this that's how they make money largely. >> we got to leave it there. it was a great debate, guys. we'll continue to have it here tony fratto and laaln toleson. >> we are getting technical next on "power lunch. select securities 24 hours a day, five days a week. that's amazing. it's a pretty big deal. so i can trade all night long? ♪ ♪ all night long... is that lionel richie? let's reopen the market. mr. richie, would you ring the 24/5 bell? sure can, jim. ♪ trade 24/5, with td ameritrade.

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it is a sell-off in the street the dows are down. it is getting closer to correction levels again and 23,966 is the number to watch. the s&p 500 is fallen since may 9th. where do we go from here let's bring in our managing partner affairs of lead strategy, katy, it is great to have you on a day like today have we made any significant damage in the past, you know, eight days or nine days or so? >> not in my work. it is a healthy correction when you think how the break out proceeded it and that targets higher prices over the intermediate terms but short term we are in the grits

of the pull back and something worse and something that should be much more prolong and fact today we have the short term conditions since early april for the dow industrial and the s&p 500. >> it feels a little different today katy in that and it is not just the sort of trade war stocks that's getting hit of the industrial and so on at what point would you start to get concerned? >> under performance today and the fact that there is such a divergence going into today of the last couple of weeks, that's why i don't think the pull back have run forcefully yet. tech is the established upside leader of the marketplace. the pull back is healthy and normal after the run up that we have seen and of course our new highs and the benchmark representing technology and here if you look at the counterfeit move to give you opportunities to add exposure to various

stocks i don't see it something that'll belong lived but rather than something should provide an opportunity and not have a major impact in the participation. a day like today is extreme enough that it could get over readings in the markets and internal measure we'll be watching the short term condition to lead tuesday's stabilization and include short term momentum. >> when we have the big sell-off, you look across assets to see correlations and the credit market have been calm and the bond mark, and the dollar is getting a little bit stronger. do you see any signs of worry or panic of other places that would be a leader for stocks >> not in my work. i have not seen much of anything either i expect 10-yr treasury view to pull back.

i think it will pull back there and help get the emerging markets a little bit of a boost here and much needed boost there. so i think we'll see some shifts but really nothing worrisome >> katie stockton, thank you for your time. >> harley davidson, they had to move overseas we'll explain. the dow have been down at 378 points, looking at our worse day from the&p a snd nasdaq. nasdaq is down 2.5%. "power lunch" will be right back welcome to holiday inn!

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hello everyone, i am sue herrera, prince williams is arriving to israel by a member of the british royal family. the trip is being built as non political but williams will be

meeting with israelis and palestinian leaders and visiting landmark sites in jerusalem. brendan dassey's confessed in murdering teresa helbeck special discount for amazon's prime holders will be available in whole foods members will receive 10% off and dozens of sale items more fallout of sara sanders refused service in virginia. the restaurant says callers are not interested in an explanation, they just hang up after offering their opinion there you go that's the news update at this

hour, sara, back to you. >> power of the president's tweets sue herrera, thank you >> let's check in on the sell-off at this hour. the dow is sinking triple digits it was down more than 400 points it is dow for the ninth times in ten sessions it is the nasdaq getting hit of the biggest decline. investors are going into safety, u.s. government bond and yields on the benchmark, 10-yr note yield. 2. 2.88 on the 10-year. as far as groups, all down of 2% 10% off recent highs there you see some of the damage, technology is by far the worst performing sector by the group. >> harley davidson is caught in the middle of the trade war

moving manufacturing to europe to avoid e.u. tariffs that would raise the price of harleys over there. fill lebeau is joining us now from chicago >> those go into effect in september. the prices are gone up substantially. harley davidson is planning to move vehicles built in the u.s. and shipped over to europe we'll fly other way to supply to europe so we are not sending as many from the u.s. from there. the eu tariffs will go up 31%. what does it mean for a price of a harley davidson deeper ship over there it will go up on $2,200. harley is not passing that along with customers tl compa if passed onto dealers and retail customers would have an immediate and lasting detrime

detrimental impact to its business in the region and negatively impacting the sustainability of its dealers businesses how much would it mean to the bottom line at harley davidson the estimated impact on an an a annual bases, $90 million. there is been a couple of times since he took office since 2017, he praised the company and said it is a great company. here he is with the white house with harley motorcycle in front. that is company that's struggling it has seen sales slumped in the united states and they're dealing with higher tariffs over in in asia. the ttp may have helped in that regards. they're planning to open a plant in thailand. the bottom line is this, this moves to limit the impact of these eu tariffs

this is a move of a company that needs to react as quickly as possible it can't wait around and say sure, jack up the price of $2,200 because that'll clearly hurt business in europe. >> phil lebeau in chicago. what does the overseas mean for harley business? let's bring in james hardman, great to have you with us. >> thanks for having me. >> when i hear harleys is eating the price of tariffs they have no pricing power people are not willing to pay up and maybe that this is just systematic of a lack of strong demand for these motorcycles what's going on in terms of demand for harley and why they can't split those costs for dealer sns. >> i think that's right.

the last few years have been hard for harley davidson this is the fourth year of retail decline consecutively europe was seen as a target of growth, relative out performance verses some of the difficult demographic trends that they have here domestically i think they looked at potential of raising those prices, not $2,200 and thought from a competitive standpoint, it would be counter to everything they're trying to do in europe and other parts of the world you talked about the famous meetings with some of these executives and the trump administration administratio administration, they're hoping that ttp is something that would be pushed through because they look at asian markets as a major area of expansion. things have moved against them in a number of ways and thus far the trump economy has not been very good. >> they're stuck between a rock and a hard place

they're not only seeing demand going outlindown and they're clg and consolidating plans here which they have already announced. what is your outlook for this stock? >> we have a neutral on the stock. they face a lot of pressure and there is an argument to be made that it is a very cheap stock but until we see some inflection point demand and improving is hard to get too excited. i do think that there is an argument to be made that over the long run, the move of production to europe may actually benefit the company they're a company that's is uniquely boxed in in terms of looking to out source their production, just giving them how important is made in america an opportunity base >> how quickly can they ramp up production in europe and where is it likely to be and how many american jobs will be lost as a result of it

>> it is the latter point was the point that i am going to get to i think harley is going to be able to respond to this much more quickly than their workers who many be potentially out of work i would be surprised if they open production in europe and they already got a little bit of production in india and thailand as i think you pointed out earlier. i think those would be the destination of increased production out of harley davidson they would still be dealing with existing tariffs i think the tariffs on motorcycles is all right 6% which gives the cost benefit that they would get out such a move they may long-term be better off and near term it is going to hurt >> it sounds like a mess >> don't they get hit by the steel and aluminum tariffs this got to be their chief raw

material costs >> what's the all and all total on harley's bottom line? >> it is the 90 to $100 million on an annual bases that they announced today. $15 million hit from inflationary pressure on steel and aluminum that was three months ago. i would not be surprised if the pressure is twice as large when they report here in the next few weeks. i can see it being $130 million on an annual bases there is a lot of moving parts here but it is very significant. >> james hardiman. thank you. >> rick santelli is tracking the action at the cme group as always, hi rick. >> you look at how much equities are down and some of the runs we had especially of the dow. it does not seem equitable when you look at how little impact. you are looking at two-days of

tens you open the chart up to january 2011, you can see 3% has not been an easy trade we never seem to pop through we have everything in place and we have big issuance and we have a fed that's tightening and best economy in the world other forces are keeping it down like equities and dollar index, if you look at that since the beginning of 2017, you clearly see the 95 level, we are starting to back away and everyone though it is down a fifth of a percent and small increments of dropping price of the last week or so, it is starting to add up a little bit. if you look at what's going on in china with all the trade talks, maybe we should be paying more close attention to their currency the dollar verse of what you want it has been drifting higher as a matter of fact, we are trading at the highest levels of the year on the dollar side of that equation. tyler, back to you up next, check on the health of

housing. it is a strong economy boosting the market or is prices still too high >> discretionary stocks are getting hit hard in today's sell-offs especially some travel names, carnival cruise and marriotts they are all down. much more on this sell-off, coming up on pouchb. "power lunch. "power lunch. "power lunch. you always pay your insurance on time. tap one little bumper, and up go your rates. what good is having insurance if you get punished for using it? news flash: nobody's perfect.

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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. new home sales jumping in may. what does it mean for the housing market >> diana olick is looking at the number >> there was a negative revision to april's reading sales were up 14% compares to may verses a year ago. that's a wider annual jump than april. as you can see those sales are still well below historical norms of demand. never mind the spike during the

housing boom most of the demands are at the low end where builders have the tightest margins they're building higher in homes and demand is lower so they are putting up fewer of those homes. notable change in today's report the median price of a new build home was lower than a year ago that could be a welcome sign going forward. >> back to you >> for more now in the jump in the new home sales and what it says of the health of the housing markets. let's bring in patrick newport with ihs markets patrick, is this up stake in sales so highly regional that we should make more of it than maybe the headlines suggest? >> patrick, that was for you and

susan, i will get you. >> that's what we are seeing this year and so it is yes, it is recovering in the west and the south and now on the other two regions. >> susan, your positive heerspe, how healthy is the market? we have we have recovered in some levels that we have not seen in a long time all the growth in housing new home sales is in in the south where housing is affordable. that has i mplications going forward. >> so what does this mean, susan for prices if the pick up is in in affordable sector, number one, and number two in the south where prices are lower than they are in california, boston and d.c. >> it is not in the

affordability sector and not first time buyers. they're still sitting on the sideline and more affordable across the board around 330,000 is not that affordable none the less, it is down 3% because of the concentration where housing is more affordable then the rest of the nation. that's where we'll see the growth of population and household in con strustruction. >> patrick i was talking over the weekend about a friend of b lumbar lumber costs are going up. what are the implications of that for house sales and prices? >> i think it is going to make a small dent in sales and construction market is driven by the demographics you are right. lumber prices are up

it is going to probably hit sales, construction this year. mainly, what really drives the new home sales, housing service members are the demographics the houses are going to be more expensive and you will see mo more rallies >> to that point, what happens to first time buyers and how does that influence how the housing market develops because if i think they stay rentals for longer and home builder is not as profitable to build those so-called first time homes then there is going to be those gaps. >> we are seeing people staying longer and going to homeowner ship later in life multi families have been doing quite well there is demand as millennials move up to that -- let's have that first child and start our life path. there is a demand. as long as interest rates

staying low, we'll see an increase in demand for first time homeowner shhomeowners >> patrick let's talk about interest rates and what impact it could have as rates move to levels we have not seen in quite some time. >> well, if you look at home sales, they are down from last year and they may be down for the year and then we are seeing higher -- the bottom line is they're going to hurt sales going forward and probably not going to go up that much more. we think they're going to settle around 50 or 75 points higher than they are now two or three years. >> patrick and susan, thank you very much as we enjoy having you. >> pleasure. >> one great spark in today's down market, consumer staples, can this trend continue? "power lunch" will be right back jurassic world: fallen kingdom

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let's drill down on that ken goldman is with us nice to see you, ken >> always nice to be with you. that you know for having me. >> the overall buying of the group, is this about dividends or deals >> i think a little bit of both. you know, when my group is up, it's usually not a good sign for the rest of the market people are looking for safety so i'm sure there's some dividend part of it but there's a little bit of m&a too the "new york post" wrote about kraft maybe for campbell and we heard about some speculation so i think it's a little bit of both >> let's talk about that "post" report somehow it was news to investors that kraft would be interested in coampbell's. we know that campbell's is looking at all strategic alternatives why would a kraft be interested in campbell's when it's nearly all domestic, it's a very slow-growing category or shrinking category, condensed soup, and it doesn't really offer a path beyond synergies to

profitability from kraft, which is learning the hard way now that once you squeeze all the costs out of it, there has to be another plan >> you make some great points. if kraft were to be interested in campbell, we think it would be almost purely from a financial perspective. now, kraft might want the brands, right? you can't deny that the pepperidge farm brand is terrific the campbell's soup brand is iconi icon iconic kraft would be looking for the financial accretion. >> wouldn't it prevent kraft from making bigger deals down the road for another company because if kraft bought campbell's, then it would have that big snacks business and threaten there's no way the anti-trust trust authorities would let them buy more. >> i don't want to get too speculative but there has been some belief that kraft would use or need to use its stock, its equity, as currency for the next large deal perhaps what 3 g is thinking, and this is just me speculating,

i don't really know, is that they need that equity price to get higher so when they do use it as currency for the big deal, it has more value and maybe this is a steppingstone, hypothetically, if they are going to look at a campbell's soup, toward that end. >> so if kraft bought campbell's, you said that it would be an accretive deal back in may, we saw that huge decline in campbell's soup on their earnings and now we've got it back basically to those pre-earnings levels because of the speculation noise in the stock. are you telling me that kraft is actually going to benefit from buying a company that just about a month ago was seen as really having a problem in terms of its growth prospects >> i don't think they are going to benefit, which is why we wrote in our note that we don't think a deal is likely to happen all i'm sort of suggesting is if a deal does happen, it would be more for financial purposes and they would be taking on an awful lot of risk in doing this. campbell's soup has many issues right now. i think they have better days ahead of them but right now, i would imagine that kraft would

have to look at that and say, boy, is that something we really want ttaght now. so if not kraft, is there another one out there? is campbell's a target in your view, period >> only as a break-up and i haven't necessarily run the math on that to say whether that would work for everybody, but i don't think there would be another suitor out there for the entire business. frankly, i'm not sure kraft would want the entire business either >> is there another company in your coverage universe that you like the best that might well be acquired by somebody else, either because you like it because it's an acquisition target or because you like the fundamentals of the business >> i like kellogg here you know, when we're on the record, kellogg is one of my favorite stocks right here they're starting to turn around the cereal business. you can see better data with special k coming out is there. getting rid of dsd has done better than anyone might have thought, i think including kellogg itself the stock isn't at any big multiple think of all these companies i cover, general mills, smucker,

they've all done deals lately and all done big deals where their balance sheets have moved up higher. kellogg hasn't done that so i think there's less execution risk >> do any of these bring back growth topline growth has been elusive whether they combine big brands all together or spin off other brands is the sector going to grow? >> no, i would not count on the packaged foods sector growing again unless something dramatic happens. i would count on very limited zero percent, maybe 1% growth with population if they're lucky. most of these companies would be thrilled to have a positive number for their organic sales >> that's quite a statement from a food analyst ken goldman, thanks for joining us trade troubles sinking stocks today tech, the biggest loser. utilities, the biggest gainer, so how do you protect your portfolio during a trade war that's coming up in the second hour of "power lunch."

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i'm melissa lee. here's what's on the menu. trade war fears, famed economist robert schiller joins us with his take on what the tariff tit

for tat means for the economy and your money tech's market take over the sector has been leading this year with the nasdaq outperforming big time but will the trend last your second half playbook is still ahead. and while the markets are falling, bitcoin is moving higher has the bottom been put in is now the time to buy "power lunch" starts right now welcome, everyone, to "power lunch. i'm sara eisen let's check in on the markets. big selloff, stocks lower across the board as trade fears continue to shake investor confidence the dow has now wiped out its june gains, breaking its 200-day moving average we'll see if it closes below there. it would be the first time in two years. right now you can see we are off the session lows but still down triple digits, dow down 1.3% the nasdaq composite down 2.25%. utilities and staples are actually in the green today. technology, energy, the big losers speaking of tech, f.a.n.g.

stocks getting hit hard. netflix, the biggest loser and semis are slumping as well with the sector etf breaking its 50 and 100-day moving averages micron, nvidia, the laggards materials getting hit on trade fears. tyler, over to you >> sara, thank you very much i'm tyler mathisen welcome, everybody let's get a little bit more on the market slide and to do that, we'll go to bob pisani and mike santelli live at the nyse. mike, is all this trade related or are there other factors at play here? >> i mean, obviously, trade seemed to be the trigger today you could see the futures selling off yesterday as you got these reports about new measures against chinese investment and things like that and certainly semiconductors down 3%, that's very much directly in the cross hairs, but it seems like an excuse for hot money to come out of other areas small caps down almost as much

as the s&p 500 so i think a combination of trade and global markets have been weak, it's a risk off tone. >> i would agree trade leerl is the primary thing but two things to bear in mind number one, we are approaching the end of the quarter, the end of the first half. there's a lot of little screwy things that can go along you get pension funds rebalancing, we've got certain sectors like tech, huge outperformers and so you not only get people rebalancing, you might get some of the momentum people saying we want to take some profits at this point and indeed that's what you're seeing, the biggest momentum name we've seen, the f.a.n.g. and f.a.n.g. plus names all down today. dollar strength is a big problem. you are going to see plenty of companies coming out complaining about the strengthening of the dollar affecting their earnings. so yes it's trade, but there's other things floating around approximate of b >> bob and mike, quick question. how come one day trade war fears send the market down more than

1%, a few hundred points, and another day, the's trade fears and new tariff threats and the market appears to brush it off >> well, go ahead. >> i was just going to say, it's always a combination of interpretation and the market's field position on that day, and whether the news of new trade measures was truly unexpected or incremental. it seems likely to be put in place. i think all of it fits in there and we had a market here, that little rally we had from late may did not really get escape velocity it didn't persuade anybody that we were making a run directly to the old highs so i think it all of a sudden matters then >> so there's also quality atatl different -- not all tweets are created equal. when the president says, i might not allow u.s. companies to invest in chinese technologies, that's a different qualitative statement so i think there's broader concerns here as well. i mentioned this morning, an ipo in hong kong, one of the biggest investors is qualcomm.

they might be wondering, is something going to come down the pike where the president is going to try to interfere? that's got the market, we don't know what's going on kind of thing. >> guys, thank you valuable as always bob pisani and make santoli. the president has said the economy is the best it's ever been do americans feel the same way and what do they think of his policy so far? steve liesman joining us with the results of the survey. >> strong american economic optimism translating into strong numbers on the economy for the president. 51% approve his handling of the economy. 41% approving overall. that's up two points but this one up here is up six points 47% disapprove of his handling of the -- overall job on the presidency that's down ten points but this number here, 36%, disapproving his handling of the economy, that's also down as well let's take a deep dive on the issues and see where americans agree and disagree with the president.

let's talk about the best issues for the president here individual tax cuts, 60/26 are renegotiating trade deals, the public supports him on that. business tax cuts, 51% to 35% and deregulation of business, 47%, 34% where he doesn't do quite as well, immigration policies, repealing obamacare, still a negative, and bank deregulation does not poll well with the american public. moving on now, let's look at the best issues -- let's look at who gets credit for the economy. 55% say president trump. 12% say obama. this is among those who have positive views on the economy. republicans in congress, not so good and none of the above or not sure, 20%. how about congress interesting results here we asked who would the country be better off with, democrats or republicans in control 34% say republicans. 32% say democrats. and 34%, neither, not sure, or about the same

it will be interesting from here >> that's about an even split. people just started throwing up their hands. steve, stick around if you wouldn't mind. investors not quite as optimistic today as maybe some of those numbers would suggest the dow losing its june gains. it is just 1% away from a correction the president's good marks on the economy in danger of being taken away by a brewing trade conflict let's bring in robert schiller, professor of economics at yale university and the cofounder of the case-schiller index. good to see you. thank you for joining us you are recently back from china. a trip there about a month or so ago. i wonder what you heard when you were over there about a brewing trade conflict or trade war. what are the feelings over there like before we get to some of the other questions that are top of mind? >> i don't think that i have a lot to report. they don't like it i can tell you that. they tend not to bring it up with me as an american i had the same problem when i

visited russia a few months ago. you know, it was just the sanctions, that was a delicate topic. maybe i'm not the right kind of ambassador, but they tended to be silent about the whole thing. >> let's turn to some of the things that steve just reported. overall the president seems to get more than half of the country approving of his -- of his stewardship of the economy they seem to favor his renegotiation of trade deals by an even greater percentage or plurality, i guess you would say. what does that tell you about the feeling that the american people have about the business climate and business confidence and economic confidence in the face of all of these other things that could presumably bring it down a notch? >> well, it seems the americans are angry and they've put someone who's a someone whose prevailing mood is angry about our being treated unfairly president trump says they're

laughing at us for having made bad deals. that's calculated to bring out anger and i don't -- i think that trump has been supporting the markets with his capitalist tilt people believe that he's good for the markets. but not necessarily if we start antagonizing, you know, the g7 meeting recently looked kind of grim this kind of antagonism with our allies, i think, will eventually harm confidence. >> i mean, that is the question, steve, right how much of a pain tolerance does the president have to see the market go down and the economy get hit as a result of the trade action >> so, he has a bit in the bank on that issue, right he's got 40% up overall. now, each month that goes by that we don't have another gain, it kind of ruins those monthly returns that we've had under president trump. and the work that we did shows there were, like, 15 or 16 days of minus 1% on the dow and half of those were related to news

from the trump administration on trade. it is unusual -- the president has listened to business on a lot of issues. he is not listening to business or the markets on this issue he's apparently not listening to larry kudlow or kevin hastet on these issues which are two people that the market put a lot of stock and faith in. i will tell you that when i look at every single day where had trade was substantially about trade, the market never rallied when there were going to be more tariffs >> so professor, let's get to how you think this will impact the economy. you actually said that you think it's going to result in an economic crisis. what's the shape and what's the -- how deep is that crisis going to be? >> well, i think the market is highly valued, using my cape ratio, and in the past, it's

very hard to predict exactly when the correction will come but it's perfectly normal that there could be a correction. we've seen a remarkable stock market ever since 2009, and it's not all trump, obviously mostly obama but trump is the -- is maybe related to the last stages of it, when it's looking really elevated, and it's not just me who thinks this. i did my own surveys, and i know that recent years, people have been more and more concerned about over valuation of the market, and they're still investing in it. this is one of the paradoxes of human nature, but i think that there could be -- every time the market goes down, like it did also in january of this year, for a little while, people are thinking, is this it then they've changed their mind and come back. we'll see if that happens consistently >> professor, these aren't random events, right i mean, you have a good economy

right now and you have these very, very favorable tax cuts for businesses whether or not they end up helping the economy over the long haul, but you have this input into earnings that are going to help for at least three quarters or at least two more from here. i guess we have one coming up in about a couple weeks that should show every time you're going to compare this year to last year, earnings should be up more than double digits. that's inexorable, isn't it? >> the real question, which i don't hear talked about very much, is how enduring are these corporate tax cuts will they be reversed? now, things can happen we could have a democratic congress there could be a quick reversal. but i don't think so the same thing goes with tariffs, that trump might push them up and then be forced to pull them back down. that's what happened, by the way, in the great depression they pushed tariffs up with the

smoot-hawley tariff. they didn't work there was retaliation. they learned their lesson. same thing here. but i think that my opinion ist will probably hold on. these tariffs are not. they're too crazy. they're generating so much anger around the world it's not a sustainable policy. >> well, i don't know. just when everyone thinks that, steve, we get an announcement of a new set of tariffs >> the trouble is our data the president has an exquisite ear for certainly his base and maybe the broad public on this issue. when we put up the numbers showing that a majority of the public supports renegotiating trade, and i will points out, the numbers fall when it comes to putting on taxes and tariffs on imports public likes that less, but there's still a plurality in favor of it. so he has the public behind him if not the market and business on this issue. >> yeah, they want to see us fight back, right, against unfair trade practices

i get that, but it hurts >> the trouble, sara, is that this is a one-way debate there is nobody, no party -- only the economists stand up and talk about the benefits of free trade and it's a bit like kevin bacon at the end of "animal thousan house" saying, all is well, while everybody riots and runs to the other side. nobody's listening to that argument that we're all better off because of the free trade system that has dominated this world for the last couple decades. >> steve, we have to leave it there. professor, thank you very much we'll have you back soon to talk more thank you. coming up, it's a new week, but old stories. stocks sliding on trade tensions, so how do you protect your money in this environment that's next. plus, has bitcoin hit bottom the cryptocurrency dropping to its lowest price over the weekend. it has since bounced back and is up on a down day for the market. and take a look at some of the big cap tech losers in today's session. intel is down nearly 4%. microsoft, ibm don't go anywhere. much more on the selloff when "power lunch" returns in two

a big down day on wall street as trade tensions hit investor confidence. the dow and the s&p 500 now negative for the month of june dow's on track for its lowest close since early may and it's broken through its key 200-day

moving average volatility jumping with the fear index at a two-month high. let's bring in michael, chief investment officer and bruce, chief investment strategist. the loss of leadership groups from technology and financials, what does that say to you? >> well, you know, we're looking at -- and i don't mean to make these sort of all about today's market action and i think this is something we've been thinking about for a while. the trade tariffs are very clearly targeted at the supply chain in technology and industrials and we've been pondering for a long time this two-year sort of large gap growth technology nasdaq leadership that has been really sort of super charge fwd by the f.a.n.g. stocks and this feels like it could be doing that. if you remember, in 2015 and '16, we had a period where defensive stocks, the staples, utilities, health care and so on led the market higher even while they weren't growing because

there were lower interest rates, not higher, and economic growth was relatively weak and it's a possibility for us to start to see that nut turn back to that direction. you certainly see it in today's trade. >> but michael, last week, i mean, you saw divergence within the technology sector with the f.a.n.g. names doing pretty well, seen my some as safe ha b havens versus the semis, which did break down more on the trade worries. >> right you know, that's the interesting part you've got -- people can sort of argue that facebook and amazon and google and netflix are defensive in some way because they're growing earnings and they're not particularly manufacturers, so it's going to be interesting to see how they react. i think the hardware stuff on the technology side, ibm and cisco and some of the others could have difficulty. >> bruce, what do you make of the overall selloff that we've seen over the past nine days, ten sessions, i should say, nine days of losses for the markets i mean, what's interesting about

this is that it started with the fed meeting. it started with jerome powell, and trade wars certainly added fuel to the fire, but i'm just wondering what you think is behind the overall declines that we've been seeing of late. >> well, the decline to this point has been pretty well contained given the backdrop of the trade wars and the fed raising interest rates, and the offset, of course, has been the economy doing the best it has been in many, many years, so that balance continues until maybe today. maybe we're starting to see a break that's going to continue and we're going to have a correction that's a lot deeper than previously felt but the market's also suffering from internal problems breadth of the market has been pretty poor. it's been led by only a handful of tech stocks and maybe some consumer discretionary issues. seven of the ten s&p sectors are flat or down for the year, so the breadth of the market has not been great

it's not negative but it's not great either i'm more concerned about the seasonals where the market typically runs into trouble in the summer and fall in a midterm election year. and of course, you have august and september approaching and those are two of the weakest months of the year for stocks. >> bruce, you've just got my attention. what -- you talked about what is in the past. what do you expect over the next six months are we in for some really rough sledding >> i think we're in for a struggle in the market at the beginning of the year, we thought 2018 would basically be a flat year, a consolidation year of the 2017 gains with the midterm elections approaching, the fed raising interest rates, and we haven't had a correction of any significance in 2017 we thought the volatility certainly would change, and that was probably a no brainer on the volatility, that is, but nonetheless, the backdrop

certainly different than it was in '17 and then you look at investor sentiment and despite all the trade wars, despite rising interest rates, there's a lot of optimism out there and a lot of complacency and that causes us to pause as well we don't think long-term trend of the market is in jeopardy, but we do think, over the near term, that the action could be problematic. >> volatility. the name of the game guys, thanks michael and bruce. all righty, coming up, bitcoin bouncing back a bit today. good time to buy or should you just stay clear of it? going to take a closer look at that one that's coming up next. and as we head to a break, take a look at retail stocks estee lauder, williams sonoma and the container store among the biggest losers in retail right now. once there was an organism so small

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the ibm cloud is the cloud for smarter business. down day for the markets with the down do down. while stocks are lower, bitcoin is bucking the trend, bouncing off its lowest levels of the year, now up more than 2% on both coin base and bit stamp as well as in the futures market. would this be a sign of a bitcoin bottom

let's bring in brian kelly good to see you. >> hey, emily, how are you >> you are saying this looks like a past bitcoin bottoming process so explain that to me. >> so, we saw over the weekend, we saw a bitcoin hit new lows. i think we went to $5,779 and then within about 10 or 15 minutes, you had a huge ramp-up, 100 to 200 points and that's typically the action bitcoin has shown at bottoms $5,900 or so is mining cost. there's an incentive for miners to keep that price above that level, so it's still early, but we're starting to see the early signs of it, and actually, this morning, we actually saw quite a bit of baedemand coming from as, so that's very positive. >> when you say you're seeing increased demand coming from asia, what exactly are you looking at what should people be looking at >> there's a couple different things one, we're seeing it from our otc group but also tether printed about $250 million worth

of tether today, which generally indicates there's demand coming and most of that demand is asian demand as most of the asian exchanges use quite a bit of the tether product so that, you can kind of infer what's going on. >> that's basically because you have to put fiat currencies into tether, which are then used to buy bitcoin or other crypt currencies >> right a lot of the asian groups don't have u.s. banking accounts so they use tether, which is a cryptocurrency backed by u.s. dollars and they use that as a proxy. >> what fundamentally is driving bitcoin? i've seen everything today from the iranian real going to new lows and that sort of currency collapsing, creating some underground demand to, you know, the u.s. dollar to the chinese currency is there anything fundamentally driving it or some correlation we should be watching? >> so, in general, what we have seen is exactly that, is that there -- it goes higher when there are currency crisis. remember, this is an alternative currency, so it works very well for that

so, i think iran's probably one of it. we've seen argentina i would also say it kind of t g tangentially has to do with the trade war and what's going on for china. what's the final option for china here probably a devaluation of the currency i'm not saying that's what's going to happen but that's ultimately what they can do to retaliate. if you're a wealthy chinese person, where would you want to put your money certainly not in rmb maybe in some btc. >> good to see you have fun ringing that closing bell down there. >> looking forward to it >> brian kelly of bkc. f.a.n.g. stocks are down today but having on fire with netflix leading the way, up 100% this year. will the f.a.n.g. rally continue into the second half or are we starting to see it fizzle? as we head to break, take a look at some of the energy stocks, marathon oil down more than 4%. ow lchisacinwowinners on friday. "perun" bk t

welcome back to "power lunch. trade fears hitting the market today. the dow breaking its key 200-day moving average key technical level losing all of its gains for the month it's down 1.5%, off session

lows, which were down more than 400 points s&p 500 down more than 1.5% but it's really the nasdaq that's getting slammed today, down more than 2%. as far as names that are moving, intel, mcdonald's, visa, the biggest losers in the dow. american express, walmart, and coca-cola leading the average. and take a look at some of the steel stocks, the etf tracking the sector slx down more than 3% led by caterpillar, united steel and commercial metals. so we're seeing a lot of pain in some of the materials and industrial names on those trade fears as well. now to sue herera with a news update. >> thank you very much, sara here's what's happening at this hour doctors caring for house candidate katie arrington say they removed her from a ventilator she's showing motivation to recover. just three days after being severely injured in a car crash in south carolina. she plans to keep running for the senate seat after defeating representative mark san ford in the gop primary on june 12th

new york's governor andrew cuomo signing legislation that paves the way for the construction of a rail line between midtown manhattan and laguardia airport. he signed the air tran construction bill after detailing the plans during an event at the world trade center today. a major rock slide closed all eastbound lanes of west virginia's route 60 near huntington, causing significant traffic delays the rock slide happened just after midnight, sending large boulders tumbling on to the roadway but luckily no one was injured. and about 1,200 school-aged boys and girls raced on to the field of the football stadium to break a record for the most people playing table tennis at the same time. the ping-pong record also included players with varying levels of disabilities congratulations to them. you are up to date >> that was a little chaotic there with the ping-pong >> you think yeah and with the 1,200 kids. >> wow wow. all right, sue, thank you very

much let's check in with jackie at the commodity desk. >> crude prois pricices were hii morning, brent near its pre-opec sweet spot, if you will. $75 a barrel even after opec said it was going to put that million barrels a day back online wti, on the other hand, popped on news this morning of a canadian outage. goldman warning that that may tighten the north american supply but that pop was short lived. fear over trade tensions, stock market volatility and less demand issues outweighing all those factors at the moment. the dollar holding steady. back to you. >> jackie, thank you taking a look at the major indexes this year, the nasdaq continues to be the clear outperformer despite this recent downturn helping push the index higher are the f.a.n.g. stocks. so which one should be in your second half playbook let's bring in brian white with

his top picks. just when it comes to today's action, i know it's hard to draw a trend from one day's action, but it seems like we're seeing a drawdown in technology in particular because it's being used as the atm of the stock market should we be concerned about the performance of tech longer term if we do continue to see overall volatility in the marks from whatever the cause >> well, you know, it's one of the few bright spots out there in the market. the numbers in the first quarter were great the economy seems to be doing very well. some of these stocks have had massive runs so there's some profit taking. that's not surprising. but we would stay the course i still think there's some, you know, great values in this group, and we, you know, we highlighted specifically within the f.a.n.g.s, apple, facebook, and google that are all up, you know, maybe 8% to 13% year to date, underperforming a group that's up over 30% >> is there a concern that apple will become a trade war stock

just because it manufactures in china, it needs to bring in components from taiwan and elsewhere in asia to china >> the news flow, you know, can be a bit of a head wind. the nice thing is apple still trades at 12 times x cash, is returning a ton of capital to shareholders i do think -- you got an iphone event coming out in the fall, so i think there's a lot of unique things around apple where even today it's relative to our group, it's not getting hit as hard >> do you have an explanation why netflix is getting hit so hard today >> it's been a -- just a fire storm. >> because it's been so hot. >> it's been so hot. and so, you know, you might, like you said, melissa, use it as an atm and that might be happening. i do think that these type trends will reverse because the trends are very strong and they're not just cyclical trends, that's the beauty of it. these are very, very strong secular trends as we go through the digital transformation >> but if we do go into a period where there's more worry about

an economic slowdown as a result of trade or whatever, the latest worry is how vulnerable are the names that have been such big winners. >> obviously, if there's any issue with the economy, all these companies are vulnerable luckily, they have some pretty phenomenal secular trends that allow them to grow even in bad times. but you know, any time you get into a recession, forget about it all the stocks are going to go down >> in terms of apple, you mentioned the product cycle, the new launches in the fall there has to be a point in time where you say, we've got to figure out the trade war issues and any impact on the supply chain because they've got to start getting components in place. what is that sort of deadline for them to manufacture enough to get ready for that fall launch >> well, you generally -- this is the time, june-july, you start making the components. so you'll start to see a jump in the supply chain we put out something called our apple monitor so you'll start to see it at that point in time i'm not expecting an impact, fundamentally, but the news flow, you know, can be a bit of

a head wind as we said >> who gets to a trillion first, apple or amazon? >> well, we have our price targets have $1 trillion on both you know, i think because apple is so undervalued here and closer to that trillion dollar mark, i tend to think it will be apple. but our price targets for both are predicting a trillion market cap for both companies for sure. >> we had an upgrade on the microsoft today and the big driver was the analyst estimates for the asia or the cloud business, saying they expect microsoft to capture $100 billion in revenues over the next decade out of a $450 billion revenue market. that puts a lot on microsoft's shoulders in terms of market -- or market share. you cover a lot of the other cloud names. do you see this kind of growth in the names that you're looking at what does that mean? if microsoft is that sort of leader in ten years, what do you see for your group >> well, you know, we see great things ahead for amazon's aws business for sure and this is a

$22 billion revenue run rate, you know, there's no reason why they can't grow, you know, about 30% a year for the next 5 years, somewhere in that range. google cloud is a baby this is a $4 billion revenue run rate, and i see great things ahead for the google cloud so, you know, i think there can be a few winners here, but i would say aws and google cloud are going to be tough to bet against for sure >> brian, thanks for joining us. >> thanks, melissa g.e. saying good-bye to yet another one of its businesses today. morgan brennan is live at the new york stock exchange with the details. and less than enthusiastic market reaction. >> yeah. sara, that's right ge is announcing a $3.25 billion sale of its distributed power business to take over firm advent international now covers ge power's yen bjenb

and waukesha engines the deal, which is the latest in the broader strategy to divest at least $20 billion of assets by the end of next year, this is a move to shed non-core businesses as the struggling industrial tries to turn itself around this is the latest deal among the sales that have been struck under flannery so far. you've got industrial solutions for $2.6 billion, health care i.t. for about $1 billion and also that complex $11 billion merger of the transportation unit with wabtec through which ge will receive almost $3 billion in cash up front. still on the block, you've got lighting and current, which is the energy management business ge has also said in the past that some smaller aviation platforms are up for grabs as well and meantime, today, also marks ge's last day as a member of the dow industrials. this is really the end of an era for a blue chip that's been in the index continuously for more than a century throw in all this trade angst

that is really rattling the broader market overall today and take a look at shares of ge, they're down almost 2% and this last day on the dow, they are the worst performer, down more than 25% >> it's a humbling time for that company, i'm sure, for its management as well is there any sense of what it would take or what the market is looking for to make the stock move up? it's just a drip, drip, drip of sort of depressing news. >> yeah, well, i mean, there's this longer-term plan that's under way, under flannery. the divestitures are a big part of that. there's also been this expectation in recent months that we could see broader, longer-term strategy that could even potentially involve a larger break-up or spinoff or divestiture of one of its core businesses david faber has reported a lot on this over the months and even just recently last week so i think investors are looking for even just a couple years out from now, what are the longer-term plans and also that power business, which has been ge's biggest what's the turn around look like

there and of course, cash flow, which has been the big issue you've had a number of analysts come out talking about the dividend, whether you could see a cut, a suspension, et cetera >> all right, morgan, thanks very much. morgan brennan on the floor of the nyse chip stocks sharply lower, what that could mean for the sector in the future and as we head to break, take a look at the s&p 500 heat map. more than half the index is now in correction territory or worse. about 20% of the s&p is at bear market levels, down 20% or more. more on the selloff ahead. red a winter weather emergency... extreme risk of burst pipes and water damage... soon, insurance companies won't pay for damages. that is, not if they can help prevent damages from happening in the first place. at cognizant, we're turning the industry known for processing claims into one focused on prevention with predictive analytics, helping them proactively protect the things that matter most. get ready, because we're helping leading companies see it-

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stocks down more than 400 points, 433 on the dow, 431, that's close to session lows as we head into the close in about an hour's time semiconductors selling off today on concerns about efforts to block chinese investment in u.s. tech firms, so what's the long-term impact on this sector? joining us is b.j., managing director and senior

semiconductor analyst at zuvo securities vijay, welcome joining us on the phone. how do you explain today's selloff and how enduring or concerning do you think it is? >> yeah, thanks for having me on i think definitely it's the headline risk and averting risk here but what you're seeing today seems to be a knee jerk reaction when we look at the semiconductor space overall, we don't think china has a lot of the technologies in-house to supply their own demands, so processors or analog, or even memory, they really don't have the capacity or the capability to supply that in-house, so they'd have to depend on many of the u.s. suppliers, at least in the next two to five years also, when we talk to many of our companies here, there's obviously concern, but it has not shown up in any change in demand or outlook for any of the semi guys, except for, i would

say, zte, where there was a very specific, you know, shutdown in that case. >> you know, secretary mnuchin has disputed reports that came out over the weekend that the administration was preparing to put in place impediments to chinese investment in semiconductor companies and other technology companies, saying that whatever happens will be applied more broadly than just in the cases -- in the specific instance of china do you think that is what is behind this here i mean, you say that the fundamentals are going to be strong no matter what happens on that front >> yeah, i think when you look at many of the stocks, names we look at on semiconductor side, the big secular trend is toward safety and automotive mandates with ev, even in names like avago so we think there's a much stronger underlying theme in terms of technology and demand that's coming through. sure in the near term, some of

this creates concerns and has risk but longer term, we see demand signals pretty much intact >> vijay, whether or not this report out of the "wall street journal" about a two-track program is true or not, i mean, the chinese could put up barriers to mergers of companies that are not chinese as we've seen or might see with qualcomm and nxpi is there a concern within the sector that consolidation could actually be hampered just because the chinese could reject a deal >> yeah, i think we are already seeing that in the last year and a half where there's been -- there has been a slowdown for them and has taken some of the premium out of the semiconductor names. but on the flip side, and i think it's still -- is something when you look at the overall market, that demand is still intact we think consolidation aside, you still see fundamentals

pretty strong, but you're right, from a secure standpoint, we have seen a little bit more, you know, a little bit more focus on some of these security issues, and some of the programs are down a little bit. but that, we think, is already reflected in many of these names because in the past six, nine months, even longer than that, the last year, you have not seen any major cross part of that, so that premium has come off already. >> vijay, based on your discussions with management in the industry, how much of a concern is the technology transfer from china for the semiconductors, the intellectual property theft i would think they would be supportive of at least the president's motives on this front. >> yeah, i mean, i think if you look at ip in general for the technology industry, it's always a concern, so you know, i think tech firms are always, you know, moved ahead to protect their ip and i think that is always the

secret sauce that drives profitability. so, i think it's a double-edged sword, and i think -- but i think you're seeing tech companies in general have been very aggressive to protect ip and that will always be the case >> vijay, thank you very much. we appreciate it tyler, you mentioned the selloff. we do want to point out that the dow is at session lows, now having its worst day since april 6th. this follows its worst week in months the selloff continuing, deepening as we head into the close here, down 455 points, guys it's the big technology in some ways names that are getting hit hard, intel, visa, mcdonald's and boeing are the biggest losers coming up, we're getting close to a key level on the s&p 500 that could spell trouble ahead. let's take a look at the s&p 500 sectors. sara had mentioned technology. really under tremendous pressure today. the nasdaq itself is just about

five points off session lows consumer discretionary also ilieancoumere. utits d nser staples are bucking the trend. stay tuned she thought it was a fire. it was worse. a sinkhole opened up under our museum. eight priceless corvettes had plunged into it. chubb was there within hours. they helped make sure it was safe. we had everyone we needed to get our museum back up and running, and we opened the next day.

time for "trading nation," a selloff underway, and major averages at session lows, more than half of the s&p 500 down in correction levels 10% down from the highs. gary is here, and bill with blueline ventures. there's a lot of technical levels here with 50 day and 200 moving day averages. how big is the damage in your assessment >> the damage is not significant yet. i think the one liner for us is that this weakness is viable as long as you're above 2670. i think that's the more important level. now, speaking in terms of elliot wave series based on assumption markets moving in five way we're in the fourth wave correction during this, lagging stocks build their stock, but until we get a new high with non-con fir nation, i think we're set up for the fifth wave higher.

of course, as long as support is held, support is for us at 2670 mark the may low converges with the ind index's moving day average, that's the level to stay above >> 2670, 2600 now in the s&p, bill, what about you >> i'm not as doom and gloomer, but i did update our research last week to go bearish on the stock market because the trade tensions are not priced in the problem with that is a amount of time between now and july 6th, you also have the july 4th holiday, and this gives a lot of time to sell into that holiday. if you look at the end of the second quarter, portfolio managers and investors look at the s&p that's coming into the week 8% from the low, and as well, the nasdaq and russell were 14% from the low at the quarter. there's a lot of selling that can come into here, and it pushes the market lower. now you have on june 30th, a potential deadline president trump will announce the restrictions on chinese investments or tech exports.

so our sellers are going to come into the market, lock in quarter gains before the holiday, and i think so, so, again, it's a matter of time between now and friday that's never a straight line lower, but i think we're in for a big volatile week. >> volatile end of session certainly, guys, thank you bi head to our website at trading.nation.cnbc.com. more on the market selloff straight ahead and now the latest from tradingnation.cn tradingnation.cnbc.com and a word from our sponsor. >> a good first step of any risk management strategy is determine the amount you're willing to risk on any given trade. some traders use a 2% rule where they try and limit their loss on any given position to no more than 2% of the total trading capital. duncan just protected his family

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trusted choice independent insurance agents represent multiple insurance companies and customize coverage to help protect you and your business. announcer: to find an agent, visit trustedchoice.com a big selloff today, all near session lows. we're down 496 points, 463 now, a lot, and as you see the big selloff there in nasdaq stocks, down almost 3% at 7486 dow broke the 200 moving day average, and the s&p, its 50-day, and dow and s&p lost whatever gains they had in june. intel, visa, mcdonald's, boeing,

the big dow lousers netflix having its worst day in four years volatility index at a two-month high question for technology is where do we close? if it's the lows of the session, it would be on good volume already gaining the momentum etf, which is fang, a lot of the other growth names out there, and they already traded their full day's volume up until this point with an hour to go in trade. >> the selloff looks ugly in stocks, but something that a number of guests reminded us, it's not a widespread panic. 10-year is lower, there's some demand, but it's not like it's tanking. gold is actually lower, so there's not a big, you know, run into safe havens the dollar is a little weaker. watch that and see how it develops >> i have not looked lately, but some of the sectors were actually higher. i guess -- >> staples, utilities. >> and reits i think were higher i don't know whether that's

still obtaining right now, but it is a nasty day with technology bearing the brunt of it >> i think the administration, they talk so much when the market went up and had this incredible run, and the economy's doing so well. they have to address questions how much pain they are willing to tolerate here on the market and economy on trade >> particularly if it continues. >> that's all for us here on "power lunch," and "closing bell" starts right now hello, everyone, i'm wilfred frost at the new york stock exchange stocks sell off as trade fears with china elevate once again. president trump's top trade adviser will join us live. we're at the new york stock exchange, and china's trade tensions could have an unintended consequence, the ipo market i'll explain ahead >> we're at cnbc headquarters, and the latest of the all-american economics survey results are out, and one sign in particular could be a bullish one for the president.

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