deal it's somewhat controversial with nike it's tuesday, september 4, 2018. "squawk box" begins right now. ♪ live from new york where business never sleeps, this is "squawk box. >> good morning. welcome to "squawk box." i'm melissa lee along with joe kernen and wilfred frost welcome back from your long weekend. let's look at how u.s. equity markets are setting up s&p 500 set to open up fractionally higher. the dow is looking lower by 22 overnight the action in asia, we did see gains in the hang seng as well as the shanghai, which was up 1.1%. over in europe, see what early going indicates here

we are seeing red arrows predominantly across the board except italy the picture in the u.s. treasury market, ten-year yield, 2.871%, slightly lower from the friday close. two-year note is yielding 2.637% tropical storm gordon is moving across the eastern gulf of mexico and is expected to become a hurricane gordon is expected to hit the northern gulf coast by this afternoon or this evening. crude prices rose overnight off the back of this after the evacuation of two oil platforms in the gulf of mexico in preparation for the hurricane. up 2% nearly for wti >> we gave you the hurricane story. have you heard him do his -- you know how these great british

actors can all speak american when they try? >> they speak american better than you can >> i'm not an actor. i speak the truth. >> i know you do i don't want you to get a hernia, i know you can say hurricane, right you can say it, right? you won't hurt yourself. >> one of the great british plains hurricane. >> do you have hurricanes? >> no we have hurricanes we don't just rains >> this is big stuff happening this week. automakers today will report their monthly sales umbers we will also get manufacturing data in washington the senate judiciary committee will begin confirmation hearings for brett kavanaugh. the ginsburg standard, that's something you can read about in the "wall street journal." they're quoting her during her

confirmation hearing, no hints, no forecasts, no previews she said in 1993 saying a supreme court to be completely unbiased once you're seated, you can't be expected to lay out all your cards beforehand which is exactly -- now, with the shoe on the other foot the democrats will be grilling this guy. >> they'll press him for sure today. >> that want answers almost reminds me of the biden rule when he said we won't put a supreme court justice in during an election. in sports -- if you want to read it, kavanaugh and the ginsburg standard the left love rbg. >> they love her news from the ryder cup team captain jim furyk will announce

three of his four captain picks tonight. i can almost tell you what they are. the final pick will come monday. after the bmw championship, the european tle european team will announce its four captain picks capta tiger you figure for sure, phil you figure for sure, bryson almost for sure. and then the fourth, tony finau. >> those are the four people expect >> you can still play if you want if you want to show up in france, bring your euro squad. >> i don't think i would aid the team well. >> not you all right. you know what? i'm kidding. best -- people say these two teams that -- the european versus the united states, best ever should be great.

rory, all his friends, justin. >> so great to see tiger back. >> it is >> it was a shame last night to see roger federer lose >> i wasn't totally shocked. he lost a five-setter. he had whim whimbledon in the b then didn't close that out >> he did win a major this year, australian open. >> he hasn't won the u.s. open in ten years or something. >> having won it five on the trot >> what is that? >> five in a row >> we need subtitles >> you need a translator the rest of us are fine. >> he doesn't. he just likes to pretend >> you're so continental you've been around and everything i have not spent enough time in london to hear -- >> you like london >> love london >> the edge of it is gone for you. you haven't been recently? >> it hasn't been that long.

we went to adele over there at the zero -- >> 02. >> the 02. >> formerly the millennium dome. >> the what? >> the millennium dome >> thank you you're here. >> i'm the translator. the chinese founder of jd.com was arrested in minneapolis on friday on suspicion of criminal misconduct rich chard liu was released witt bail requirements. the arrest was a top trending topic on social media in china with bloggers discussing the intricacies of the u.s. legal system. colin kaepernick doesn't have a job in the nfl but he has a deal with nike he is one of the athletes featured by the company as it

the marks the 30th anniversary of its just do it company. he tweeted in the ad believe in something, even if it means sacrificing everything colin kaepernick kneeled during the 2016 season to protest racial injustice as part of the new deal nike will produce kaepernick apparel. last week his lawsuit was allowed to proceed against the nfl. >> i'm looking at the post, the anthem policy is in flux with regards to the nfl the controversy drags on we're right in the middle of this it's polarizing in the country i don't know how it will finally play out nike deciding to insert themselves full force into the controversy. that's their right i think it's a smart business move because i think millennials are 80%, 90% behind probably the

anthem protest millennials, we're watching all the old brands trying to live in this new world you can't. you can't when you compete against this private label stuff. millennials are calling the shots. i think people are saying nike, they're not afraid they're standing up socially for what's right it's a smart thick smart thing probably a smart thing >> whafhalf a percent down. >> if you go out and burn your nikes, you are saying just burn it is a hashtag, if you're burning your nikes, you're protesting and people will say that the nfl players are protesting here you are exerting your --

using your right to protest when you don't want them to protest it will be a double standard >> the cohort wearing nikes might wear in support of that message. so in that respect an nfl player can go out on the field, sport nike and protest without kneeling >> right >> it is a slight shame we take the focus off the rest of the stars in their 30-year celebration, serena williams >> you said that, not me >> for nike, none of us has said the word sweatshop today all we're saying is what a socially responsible company nike is. >> so you're saying some might say nike is being hypocritica hypocritical -- >> i think it's a smart business move i'm more cynical if they're going to set themselves up as a social justice company, they need to make sure that they know where all the shoes are being made i don't know if they have that totally clued in they had the deal with that.

>> i agree you open yourself up to scrutiny on many different levels we'll see how this plays out i'm watching my twitter feed for the trump/kaepernick feed. >> trump/nike tweet. >> that's what i mean. he didn't over the weekend president trump tweeting about trade over the holiday weekend. here with a look at the agenda this week in washington, ylan mui. good morning is there trade happening that's right canada i forgot about that. three days i forget everything >> was a cooling off period there, but the u.s. and canada come back to the negotiating table tomorrow trade was on the president's mind over this long weekend. he canceled an outing from the white house yesterday morning. the motorcade was all lined up and ready to go, then the president went back inside a white house spokesperson said he instead made phone calls on

trade and other international issues but no word on with whom he spoke what we do know is what he said on twitter that is that there is progress being made the nafta talks and tremendous upside potential for the economy in a revamped deal trump will need congress to approve any agreement. orrin hatch says canada has to be a part of that deal the president doesn't seem to be backing down from his hard line tweeting there's no political necessity to keeping canada in nafta and warning congress not to interfere in those negotiations beyond nafta, tomorrow is also the last day for comments on white house's proposed 2$200 billion in tariffs on chinese goods. the administration could move forward as soon as that deadline passes we could face an escalation of tension with xhin thchina at th

time as we're locked in with canada welcome back to work >> it just feels like we're back there was the dog days of august volume everything else. you're thinking about being somewhere else now we're back we need to be here we got elections kavanaugh. trade. >> trade times two >> trade times two >> yeah. we're back >> i was wondering, haven't you wondered where ylan mui has been >> yes, congrats everything is great. everything is great with everybody. >> yes >> very good >> okay. let's check the broader markets and the economy on this first day of trading in september. joining us now is josh jalinsky

and mart vitner from wells fargo securities gentlemen, happy security. josh, markets are close to record highs at this point we have, as joe outlined, trade stuff happening. canada, china, tariffs going into effect this week. we have tech hearings on the hill with the major f.a.n.g. stocks being called up what are you thinking? >> i think a lot of short-term noise. i think trump will come out winning. as he proved with mexico i think the trump playbook is simple, talk harsh, back off, cut a deal i think we'll see a deal with china this year before the midterms >> before the midterms even though the chinese have said no talks until after the midterms >> if you look at alibaba stock, down significantly since the early part of the year tencent down significantly the chinese web infrastructure

down they're putting significant pressure on some of chinese biggest equities i think they'll break them before the end of the year so the stock market will outweigh president xi's push for 2025, basically the cornerstone of the communist party's promise to the chinese people. >> they need american dollars to do that. when we see some of the biggest stocks in the world trading at 30% off their highs, that will break president xi >> mark, what do you foresee what struck me this morning as we all get back to work, barclays was out with their best case scenario for the economy, now they say 20% tariffs on all goods from china with the chinese responding in kind there's a change in tone in terms of how this is being looked at by economists. have you changed the way you're looking at the situation

>> i have not changed it i don't think it will have that much of an impact on the u.s. economy. there's a lot of attention on what it means for prices, but it's been fairly modest. the real impact has been that we have seen slower global economic growth, more uncertainty in the economy. we have strong momentum in the u.s. economy the consumer is in so much better shape than we thought they were. the revised gdp figures showed we had trillions more in saving than previously. so we have strong momentum going into the second half of the year we're looking for 3% growth in the current quarter. >> mark, josh was outlining how some chinese stocks are feeling the pain of the trade war what about the chinese economy? is it feeling similar pain or is it resilient >> it's feeling a lesser amount of pain but it's feeling pain.

the chinese economy has slowed i don't know that it will push them to do something sooner than the midterm election i think they feel they would likely have a stronger hand afterwards rather than before. i doubt it gets pulled up. at the end of the day, there really is not that much mystery with what has to happen here in that we -- the united states is basically playing -- is the freest trader of them all. trump had a case that we have been taken advantage of in many of our trade relationships they need to be modernized i think that we don't have to have that much movement on the part of the chinese in order to have a meaningful impact on the global economy >> josh, you sound bullish in terms of how you think trade

will resolve itself. are you recommending that people buy at record highs? >> i see we're due for a pullback from now to columbus day. but i think mid october will be a great entry point. >> just before the elections reload >> lock and reload we'll see a massive trump bump >> when you say trump bump, do you mean the sectors that benefited the most initially from president trump industrials, financials? >> i could see healthcare also do well. financials could do well banking has been kind of sluggish relative to the overall economy. banking could do well certainly. >> we'll leave it there, guys. thank you very much. coming up we'll talk food stocks should you put your money where your mouth is? we'll ask the ceo of the a2 milk

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stay with their families until their 40's. last week reuters reported on the progress of a large campbell soup holder who is supposed to replace board members. and joining us now to talk about all of this is jayne hrdlicka ceo of the a2 milk company before we get to some of those issues, a2 milk company, there is a unique protein in the milk that's better for digestion and things like that >> that's right. we're a company that has created

a ro dublproduct that makes you better especially if you have some level of lactose intolerance. >> what percentage of the milk market do you fill and what is the price difference >> we're predominant in the natural challenge and in premium retailers. we sit at a price premium relative to normal milks, but the product is starting to take care of the itself now the consumer demand for the product is impressive. we're getting pulled by consumers across the country trade is picking up the story. we announced entry into walmart and costco a few weeks ago >> the number of people today i reckon since ten years ago who say i don't eat dairy anymore, is this an alternative to them or if they have a full dairy intoleran intolerance -- >> we find that most people who think they have an intolerance for dairy really v. have an

intolerance to the a2 protein. so now dairy is not off limits >> we had someone else on from this company before. >> probably blake waltrip. >> are there some cows somewhere that are -- >> they are genetically predisposed. >> where are they? >> india the discovery of a1 versus a2 proteins came from dairy scientists understanding there were dynamics different around the world in terms of dairy intolerance. in india they don't see dairy intolerance, rarely do they see diabetes or heart disease. >> did you bring cows over >> no, it was a gene mutation in the european dairy herds looking at herds across the country, 30% of dairy cows are

a2 only. >> you just use those. >> we have genetic testing to allow us which cows are only a2 only and we keep them segregated. >> how tough is the market so many people are used to nut milks, they have dominated the milk category as people move away from cow milk they move to nut milk so people are already used to that substitute. >> what we're seeing -- you can see the testimonials on social media. we are seeing people come back into the dairy cabinet because they are recognizing that they can actually drink milk. instead of having to drink nut alternatives, have cereal with a nut milk which is a different experience, they're coming back to drinking fresh milk, which is fantastic. it's giving growth back to dairy farmers, tresh mifresh milk sale

finally starting to rise >> it's a passionate issue and sector with trade talks with canada and dairy farming do you expect to see any ground made in that area? do you think there will be wiggle room? >> i don't know. it will be interesting to see how it plays out we've ensured throughout the supply chain everybody is benefiting from a reintroduction of an a2 only product. >> do you export to canada >> we don't export to canada today. we would expect to see demand building into canada as well we would love to see dairy farmers benefiting from the opportunity to reinvigorate the category. >> people need to try milk again. adults don't drink it that much. recently i was somewhere where they had fresh baked chocolate chip cookies, the big glass of really cold milk i did it it was like, oh, my god. nothing comes close to that.

>> awesome experience. >> to milk after eating that >> will you make yogurt and other dairy product with this a2 milk >> it's early days >> can you get rid of the fat, too? >> it turns out the fat is not bad for you. >> now we're finding that out as wel well >> it's like a glass of red wine >> not anymore >> we know salt is bad no salt is okay what about a milkshake with vodka. no we have to leave it there. jayne hrdlicka, thank you. coming up, nick johnson from axios will join us to talk about nafta negotiations president trump's tweets he tweeted it was a three-day weekend i can only imagine as we head to break, a look at yesterday's s&p 500 winners and losers let's begin.

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welcome back you're watching "squawk box" live from the nasdaq market site in times square. good morning among the stories front and center shares of wpp are falling.

the ad giant reporting a key sales metric improving during the second quarter but overall revenues declined this comes a day after wpp tapped mark read as its coe following martin sorrell's abrupt resignation in april. jd.com's ceo returning to china after being arrested in the u.s. the company's fonder accused of criminal sexual conduct but was released without being charge and without posting bail jd.com maintained the chief executive was falsely accused. and samsung is set to unveil a foldable smartphone this year. the company is focusing on how to make the unfolded phone different from a traditional tablet the device is expected to be unveiled at the samsung developer's conference in november read more about that story on cnbc.com apple has its own unveiling of a new product on september 12th. u.s. equity futures are mixed. dow slightly lower the s&p and nasdaq higher.

asia is mostly higher. big gains in the month of august for the u.s. president trump tweet iing it's not necessary to keep canada in a new trade deal, and warned congress to stay out of negotiations joining us is nick johnson editor and chief at axios. you know, there's a lot to talk about. what happened to the mueller bombshell on friday? is it too late now are we talking about mid-november until anything can happen now i didn't understand that all that hoopla. there was a lot of smoke did anyone have any fire >> i will say one thing about mueller. nobody knows anything about what is coming out of that investigation. >> when can it come? can it come now? >> i don't know. what our reporting on the

fringes, which is all people have, is that you wouldn't expect mueller to drop a bombshell now before the midterms you're cognizant of the criticism comey faced when he unveiled a lot of that clinton investigation stuff leading up to that election the conventional wisdom is don't expect anything until after november 6th the only caveat is nobody knows anything what about him -- i thought he told people he would finish up by the end of summer >> he has not told anybody that. this is conjecture from lawyers saying it will be done by thanksgiving, done by the new year it will be done when it's done who knows when that will happen. >> let's good back to trade. will congress do a mexico-only trade deal >> probably not but there's a

lot of moving pieces here. the president extended the deadline one thing about washington and congress, all of the deadlines are malleable. they can change the rules how ever they want to push it back a lot of people on the hill didn't want nafta to be completely overhauled the way trump did. without canada in there, it makes it much more difficulty to spread scrutiny. so what does the congress now look like when the new trade deal gets there? will it be a democratic-controlled congress if it drags on to next year? that changes the calculus immensely. >> we don't know how democrats feel necessarily about trade in the past they may have looked some of this stuff, but they can't like it because it's trump. i don't know how that works. >> and which democrats are you talking about here there are democrats who are far

closer to where trump is >> i don't think they can say that. >> bernie sanders will that's where it puts leadership in the tough spot. that's why being speaker of the house is no fun. paul ryan will have to juggle these competing interests here to figure out where the sweet spot is. >> this whole -- we're having a midterm, i know that if cavanaugh is confirmed before that, that changes a lot of things a lot of the calculus for democrats, republicans, the country, everything else do you expect that to happen before the midterms? >> i think kavanaugh will be confirmed. unless there's a bombshell that will happen in the building behind me. he's on a clear glide path to getting this done by the end of the month. instead of that, it will be an issue people hammer on in the midterms republicans will say we have two supreme court justices, you have

to back republican candidates, democrats will say they're remaking the federal judiciary, we have to get these guys out of office you guys want in >> i was going to ask about the tech companies coming to capitol hill this week is this an issue that really can unite left and right should those companies be more worried than the share prices suggest? >> i think they're showing they're worried by sending top executives to the hill this is an issue that unites left and right look for attacks from both sides.s will criticize both platforms. these platforms are in a tough spot because they're having to make decisions on who is and who is not on these platforms. that opens you up to immense criticism on both sides. >> do you think lawmakers are

fully educated on the topic? some criticized the zuckerberg hearings with the basic line of questioning. >> right these are some older folks who may not be on the internet as much as these young kids it's always interesting to see how well they understand these issues that speaks to the point a lot of americans don't understand the power of these algorithms, how these decisions are made who decides what gets promoted on the facebook feed, who gets kicked off twitter if senators have a problem understanding that, most americans do as well that's the challenge executives are facing >> why should the executives be concerned at all about legislative action maybe there's a fundamental lack of knowledge about how these things work. now you're introducing the possibility of asking about google's algorithm and how that works. good luck trying to explain algorithm to somebody who didn't know what facebook's business model was. >> but if the hill doesn't

understand this, senators get worked up. they hear from constituents saying i don't understand what facebook is doing, i don't understand why these things are showing up on google the way they are not a lot of stuff gets done on the hill, but on this issue both sides have come forgot >> i guess my point is maybe the lack of understanding really underscores the notion that perhaps any legislative action would not go after the quoer co these businesses because of the lack of understanding on the side of congress >> that would be more damaging it's not exactly what happens on the hill jack dorsey is on the hill today to committee staff trying to explain these things they said they were open to real iic regulation i think they're trying to explain their position on the hill there's the points they will make to staff on the hill and agencies to try to get good regulation >> one more question on trade.

200 billion is a lot that ramps things up, that goes from trade skir sti skirmish to trade war. we will have a guest on who said this is not just negotiating tactics with president trump he views china as a threat 5, 10, 15 years down the road that economically they can win the war and make us less great he is taking a stand now with a long-term viewpoint that we're going to make sure that we're competing 10, 15, 20 years from now against this >> that's certainly the way steve bannon would explain it to us when he was back in the white house. >> he won't be explaining it at "new yorker" conference. >> he will be explaining it on his social media platform. trump views trade as a primal -- the key element where this fight comes from xi in china has a plans for made in china 2025 belt and road

initiative they take a long view on this. some in the trump administration take the view this is the conflict of the century, the economic clash between china and the united states and it may play out in this trade war >> i think remnick made the right choice there maybe they can get jim carrey -- you know how his face is like rubber he can do crazy stuff with his mouth. the most annoying sound what can bannon do? i would side with jim carrey 9 out of 10 times if i was david remnick. you have seen him in dumb and dumber that hair cut? wouldn't you rather have him than someone like bannon i would. >> you have to get on twitter with everybody else and make that point known >> way to go david good choice. there's no comparison. c carrey -- have you seen that most annoying sound? have you seen that he's funny he's really funny.

great rtistartist, too. coming up at the top of the hour, we'll talk nafta negotiations with fred kempe of the atlantic council and then daniel arbess will join us and then a tech grilling on capitol hill as sheryl sandberg th wk.ck dorsey chair lawmakers isee y with m my life is here... [telephone ring] ahoy-hoy. alexander graham bell here... no, no, my number is one, you must want two! two, i say!! like my father before... [telephone ring] like my father before... ahoy-hoy! as long as people talk too loudly on the phone, you can count on geico saving folks money. fifteen minutes could save you fifteen percent or more on car insurance.

♪ time for the executive edge. a new report finds self-driving technology is putting nearly 300,000 trucking jobs at risk. the study looks at the impact over 25 years. while the number sounds big, it's less severe than some have predicted. among the key findings, the report finds higher paid trucking work could take a hit

kind of interesting that there's a trucking shortage right now of drivers. they are high-paying jobs. wages are going up there it's a good story now. could turn into not so great a story. >> good story for the truckers bad story for corporate america. we heard that time and time again in the earnings conference calls. >> when are you going to see autonomous trucks? is that really only five years away ten years away >> ten years away for the cars, trucks have to be further behind >> if they're standard point to point routes -- the thing about cars, your route is always different. for trucks oftentimes for long haul it's standard point to point. you go from this port to this warehouse. there is no deviation from that route. it's easier to program that truck to do that >> for the third straight week,

"crazy rich asians" was top of the box office the warner brothers film took in an estimated $28.3 million over the four-day holiday weekend now it's raked in $117 million in the u.s. and canada that makes it hollywood's most successful romcom in a decade. coming up, tiffany pham the ceo was on forbes' 30 under 30 list and she is the author of a new book "you are a mogul. she will join us next. before that, a quick check of european markets red across the screens significant decline in france, over 1% despite gains axros most o across asia. at&t provides edge-to-edge intelligence, covering virtually every part of your manufacturing business.

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our next guest started a media and technology company in 2014 and since then has been on lists of influential women under 40 here now tiffany pham. her book you are a mogul, how to do it yourself and do it now, out today. welcome to the show. >> thank you so much for having me

>> everyone wants to be a mogul. what is your definition of mogul? >> for me it wasn't necessarily a successful business woman, it was someone who is the best version of themselves. basically someone who is an incredible sister, friend, daughter, mother, team player, team leader. >> in business, what are the top tips right now that you would give to a young woman out there? >> for me, it is essentially three lessons that i always share. top business tips, rapidly prototype any ideas and it rate towards perfection over time don't worry about being perfect, just get started two, reach out to your role models when i started, i reached out to 50 of my role models and each one one by one until they all became our vinvestors, collabors and then finally, to always be

kind and authentic and generous. those are definitely the values that we he espouse at mogul >> and is the book specifically catering to millennial women and how is that advice different from advice to millennial men or nonmillennial women? >> great question. so it definitely does cater most to millennial women, although it is applicable to all since many of the things that i share are universal truths but it does apply to millennial women because on the millennial side, there are a number of things that i think are applicable to our generation such as site hustles, how i not only had a job at cbs for example during the day where i was one of their youngest direct

directors, but at night i would take on different side jobs such as with the advice mayor of beijing at night, collaborating on a venture and even further into the nights i said produce speech or film documentaries. so i had all three jobs at once and that is very millennial. and in terms of women, definitely applies to millennial women because ultimately a number of the things that i share along the way are things that i did in order to overcome our context today. women right now are just 10% to 15% of global voice. and so mogul actually collaborates with tons of fortune 500 companies in order to present jobs from them to our millennial women and then finally there is over 62 million girls around the world prevented buyfrom attendig school so we talk about how everybody

can contribute their voice toward this action needed. >> and you talk about discovering your passion early on and a not settling for something that seems like a great job initially, but isn't really what you want to do do you think too many people don't -- aren't ambitious enough to seek that job that they really love? >> it is not that they are not am bibitious enough, but they dt realize that they deserve it that is what i see for myself is that i was able to do something i was passionate about every single day and everyone always says i'm one of the few people that seems to always get out of bed so excited to get to work. and because for me, it is not work and so i think it is not about ambitious, but just knowing that you deserve an incredible life and career that is one in the same >> you said a lot of millennials do the side hustle which maybe is counter to what people think about millennials in terms of having all those

jobs but also being able to pay the bills while you pursue what you love what are the stereotypes of millennials that the number one that you have to get past? >> it might be that millennials might unfortunately be stereotyped as being self-entitled and therefore feel like they deserve -- >> well, you said that you have to believe that you deserve that dream job. and you just said one of the stereotypes is that millennials feel maybe perceived as entitled so that is -- those things go -- >> it can be conflicting, but in this context it is not so c confli conflicting. in terms of why people are stuck in a linear career, it is because they might feel like they don't deserve that kind of life whereby again they can do something that they love and they are passionate about because they might not earn money that way whereas the stereotype is the opposite so --

>> tiffany, great to speak with you. thank you. her book is out today. and coming up, showdown over nafta. we'll talk to fred kempe about the negotiations with canada and later dan arbess will be here you always pay your insurance on time. tap one little bumper and up go your rates. what good is your insurance if you get punished for using it? news flash: nobody's perfect. for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident. switch and you could save $782 on home and auto insurance. call for a free quote today. liberty mutual insurance.

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back to business wall street returns and should investors fear history september is traditionally a terrible month for the bulls developing story, oil platforms are being evacuated as tropical storm gordon takes aim at the gulf coast. plus love it or hate it,

there is no denying that the auto correct has been a game changer for iphone users everywhere we will introduce you you to the software engineer who invented it, the second hour of "squawk box" begins right now. ♪ one foot in front of the other ♪ live from the beating heart of business, new york, this is "squawk box." good morning and welcome back to "squawk box. i'm joe kernen along with fellow moguls melissa lee and wilfred frost. andrew and becky are off today u.s. equity futures at this hour are lower a little bit just 28 points or so i'm reading -- but that is mixed because the nasdaq is actually higher and now the s&p is up a little bit >> look at the effect you just had. >> i did

just my positive -- >> your sunny demeanor >> that is a good name for somebody isn't it >> d-e in the middle >> yeah. that is good mercedes-benz is unveiling an electric suv today in what is seen as a significant challenge to tesla i mean, where are you guys bmw, mercedes, general motors just seedsing the entire electric car market. the new vehicle is the first to be released under the company's electric sub brand known as eq bmw and audi are also set to release electric vehicles age vd at the high end market and samsung is producing a foldable smartphone. i miss those >> are you talking about like the clam shell kind of phone >> like the old motorola flip

phones they say the details will be released before the end of this year and he did not say when such a phone might actually be available. >> what also used to have the flip flown was jack bower. did you ever watch 24? that ctu ring phone. >> but you only had it for one day i think and then the other series -- advertising giant wpp has a new chief executive officer. company veteran mark reed was named on monday filling the post long held by the company founder. quarterly sales growth is up, but still face profit far begman challenges >> yeah, he is still speed ahead. he approached one of the big clients wpp was about to sign up

with, and yeah, i'm sure that he will -- but relative to the size of wpp, it is very small new venture, but if you are cherrypicking the best clients and the best business, then it won't be easy. >> he's done it before with like a wire company or something. >> yeah, wire and plastic products >> big fan like we are of the woolsey. >> yes, very nice. >> see, you're right, i do like london >> and you haven't been for like two years. you said you had lost your interest in london but you didn't like the trip to budapest >> yeah. >> you you you didn't like budapest >> no, i did >> it is a great city. >> i didn't love it as much as -- what i love about it is that they are still dealing with some of the remnants of communism. and they are trying so hard and

they are so pro west there the rest of the eu thinks they don't need the west. when americans walk in hungary, they are like -- but they are very welcoming and in between the beautiful architecture, you see what the communists builtle a and they ae still mad about it so a constant reminder >> familiar name has a new job andrew liveris has been named as a special adviser to saudi arabia sovereign wealth fund, this is as the fund is working on the sale of its majority stake to aramco. liveris joined the aramco board july 1 qvc of jd.com was arrested on suspicious of criminal speks and i will mi sexual misconduct.

he was released without being charged and without any bail requirements minneapolis police say they are treating it as an active investigation. amazon is looking to take a piece of the $88 billion online ad market. the "new york times" reports that the e-commerce giant is emerging as a major competitor to google and facebook and this could mean consumers will likely see ads in places they didn't before amazon's latest quarterly report, it says revenue from selling banner display and key word search driven ads rose about 130% to $2.2 billion among today's stocks to watch, facebook getting a downgrade today. the firm points to revenue growth deceleration. their long term margin guidance says combination does not provide a meaningful near term path for outperformance and this of course coming as coo sheryl sandberg heads to capitol hill this week. specifically in the note they do

mention these political headwinds, they say facebook is increasingly under the eye of global politicians and regulators which will force the company to become aggressive on spending to show contrition. they have already ramped up spending, increased staffing in order to police bank accounts, et cetera. so saying that spending could actually continue and still be a headwind trade still front and center for the markets. and welcome back, good to see you again. >> thank you the u.s. and canada will go back to the negotiating table tomorrow and trade was clearly on the president's mind over this long weekend. he canceled an outing from the white house yesterday morning. the motorcade was actually line up and ready go but then the president went back inside and a spokesperson said that he instead made phone calls on trade and other interester national issues but no word on who he spoke with. what we do know is what he said on twitter and that, that there

is big progress being made in the nafta talks and tremendous up side potential for the economy in any revamped deal but trump will need congress to approve that agreement senator or written hatch is saying canada had to be a part of the deal. but the president didn't appear saying canada had to be a part of the deal. but the president didn't appear to be backing down he tweet there had is no political necessity to keep canada in and a halfnafta. tomorrow is the last day for public comments on the white house's proposed $200 billion in tariffs on chinese goods the administration can technically move forward as soon as that deadline passes, so we could be facing an escalation of tension with china at the same time that we're deadlocked in talks with canada. going to be a busy week in washington >> and we'll talk more about it right now, as i'm looking at these foldable phones. they are not like cool like flip

flowns they are mini ipads or something. they are ugly. anyway -- >> but think about the technological innovation to the screen >> it looks like a little notebook >> they are big. >> dick tracy secret agent -- >> you want to be jack bauer >> yeah, always have been. joining us now fred kempe of the application council to talk trade. i don't know whether your ears were burning earlier, but i was talking about some of your points that you're not convinced that all of this stuff with china with president trump is necessarily near term, sort of let's get a few concessions and go about our business. but that he has a long term view that eventually china would like to sub plant the united states as the biggest economy in the

world and he will take steps to either try to slow that down or prevent it from happening. >> yeah, there are three stories on trade this week and i think the u.s./china one is the most important of them. the first of course is canada talks resume again tomorrow. my guess is that tllt ere will deal there is a lot of bluster on the president's side about withdrawing from nafta dooring it just by lat lteerally with mexico but you look what the is at stake, 33 u.s. states have canada as their number one export partner so i think that that will get solved i think china is the more serious -- and then the third issue is the subsidies that farmers can ask for, ranchers can ask for, start today so they can under u.s. law from 1933 the depression, they can ask for relief from anything that they have lost in terms of trade from soybean farmer,

sorghum, that sort of hing and then there is china. by thursday this week, you could have the president starting to raise tariffs on $200 billion more -- or up to $200 billion more of chinese goods. my guess is this lasts in to next year because this isn't just a trade dispute as you noted, this is a geopolitical dispute. the chinese are starting to think that president trump isn't really looking for a trade -- >> we are were breaking up a little we'll try to get -- fix that and get him back i'm trying to figure out whether you view the world as a zero sum game i mean, it would seem like a really prosperous china, they buy a lot of levis and a lot of stuff from us. and i don't know, do we -- do we really think of that as a -- do we not want china to succeed can't we both succeed at the same time? i don't know how do you view that

necessarily. fred, i don't know whether you heard my question. is it a zero sum game if china wins, do we lose or if everybody prosper, isn't there more trade and we have sell a lot of american goods into a new prosperous china? >> no, it is not a zero sum game at it is a global competition and it will get fiercer probably way into next year and trade is just one part of this you saw a huge african summit yesterday in china where president xi jinping was offering $60 billion of new credits, incentives and other things so they are taking up markets where we are absent and winning trade deals and infrastructure deals where we're not as present any longer so they see this as a global competition. and in the u.s. and intelligence fields, they believe that russia is there to disrupt us while china is there to displace us. and there is more evidence of

that recently. >> what is the willingness of president xi do you think to actually concede anything? i mean he is in a position right now to not concede anything and perhaps it is more important for him to stay committed or at least appear to stay committed to china 2025 domestically a as opposed to concede anything to president trump. i mean maybe that is why the chinese delegation when they were here were willing to say, hey, we will move to help resolve this trade deficit issue, but we won't give on other points >> yeah, the tone of the chinese toward president trump and toward the u.s. has changed in private conversations. a while ago they felt that president trump was the deal maker, and now they do feel that he is trying to take them down a few notches. that makes them less willing to do the negotiations that might actually bring that about. so you find them very confused and looking strategy, trying to

figure out what direction president trump wants to go in and a lot of chinese are trying to sort that out so that is why i think that this is not a short term thing. i think we'll sort out nafta pretty short term, but my guess is by the end of 2019, we'll be talking about not just a trade dispute, but an overall sort of global contest between the u.s. and china heating up a little bit. >> when does president xi start to feel the pressure domestically in china? clearly the president here has to face midterms, et cetera, and the talk usually is that xi jinping is all-powerful. but is that changing a little bit? >> what you're seeing is there is additional economic pressure on xi jinping now. he has been cracking down on corruption he has been cracking down on overspending on infrastructure that has been driving up the debt bubble. now that you see the new pressures from trade in the united states and they really haven't hit the chinese economy

yet, that is yet to come, you are already starting to see some loosening up on chinese banks and the liquidity because he can't fight the u.s. on trade and continue to squeeze liquidity out of the system both at the same time so i think that you will see some reflation in china as the trade conflict heats up. >> all right fred, thanks won't be long you'll be back on and maybe we'll have more to talk about, see if that $200 billion really goes in to effect coming up, senate confirmation hearings for brett kavanaugh will begin today what will the street need to know on that topic and whether it will move markets that is coming up. and as we head to break, here a look at the biggest pre-market winners and losers in the dow.

i think we should do that meeting tomorrow. well wait. what did you think about her? it's definitely a new idea, but there's no business track record. well, have you seen her work? no. is it good? good? at cognizant, we're helping today's leading banks make better lending decisions with new sources of data- so, multiply that by her followers, speaking engagements, work experience... credit history. that more accurately assess a business' chances of success. this is a good investment. she's a good investment. get ready, because we're helping leading companies see it- and see it through-with digital. dinner date...meeting his parents dinner date. why did i want a crest 3d white smile? so i used crest. crest 3d white removes... ...95% of surface stains in just 3 days... ...for a whiter smile... that will win them over. crest. healthy, beautiful smiles for life.

this wi-fi is fast. i know! i know! i know! i know! when did brian move back in? brian's back? he doesn't get my room. he's only going to be here for like a week. like a month, tops. oh boy. wi-fi fast enough for the whole family is simple, easy, awesome. in many cultures, young men would stay with their families until their 40's. brett kavanaugh has his first hearing today. joining us now with what we can expect, john malcolm, director of the me center and senior legal fellow great to have you with us. you know, there is a pro and con

to a candidate like kavanaugh. he has written approximately 300 opinions during 12 years on the bench. pro is you know where he stands on a judicial basis, the con is that perhaps anybody who seeks to block this nominee has a lot to work with so what are you expecting? what are some of the opinions that you would point to and say dems will latch on to that and make it an issue >> after you've authored 307 opinions and joined 391 other, there will be some case that somebody is going to object to kneel go gorsuch had the frozen trucker case and certainly there are cases where brett kavanaugh has ruled against or with administrative agencies he's ruledagainst the epa on a number of occasions. he wrote a dissent in a case involving a trainer at seaworld who was killed when dragged under water and drowned by one of the killer whales

and osha held that she was entitled to damages and that the employer should have been fined. and brett kavanaugh dissented from that. so there will be opinions that the left will focus on that they don't like and they won't focus at all on the cases in which he has ruled in favor of employees over employers or ruled in favor of agencies or in one case where he ruled against the epa but in favor of environmental groups. they won't focus on those, but they will cherrypick the opinions that they don't like. and what they will not do is criticize the reasoning that he employed, they will criticize the result that he reached >> they will most likely also try to press him on how he would rule in certain instances. and i'm wondering how successful they might be in trying to force some sort of prediction as to how he might go about that. >> yeah, i don't think that they will be very successful at all ruth bader ginsburg when she testified said that it is improper for a potential supreme

court justice to even given a hint as to how they might rule on cases that would reach -- >> that didn't count anymore, john no, no, no, no, no >> well, that is certainly what the democrats are going to say and that they are all going to say they want somebody who will be fair, independent and impartial while at the same time trying to get him to commit to upholding the precedences that they happen to like and get him to commit that he would be open minded to overruling the precedences that they have don't like that is not what a judge should do in advance. >> john, we'll have to leave it there. great to speak with you. coming up, oil platforms are being evacuated as tropical storm gordon takes aim at the gulf coast >> it's the hurricane part -- >> no you said it cool >> gordon. >> yeah, you had a prime minister gordon, right >> but that's not why i said it

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welcome back the gulf coast is under a hurricane warning this morning

as tropical storm gordon strengthens. kerry sanders joining us live from about a about a locks city. >> reporter: there is a lot of concern and attention to what could happen here along the coast of mississippi they have already said school closed today and tomorrow. some schools in new orleans will also be closed a year ago, nate came to shore it is one that a lot of people seem to have forgotten, but nonetheless it brought in a storm surge. and in this particular case there could be a similar storm surge, water that was well up to here, went in about a half mile along the coast. so residents are preparing along the coast for this storm it may be a hurricane by the time to makes landfall because of that, people are given the opportunity toda because of the timing of the storm to still get to the grocery store, get the supplies they need, to batten down the

hatches and of course to get gasoline right now there are mandatory evacuations, but those are just in gulfport, la buloxi, people the harbors. back to you. >> thank you very much and wti is trading higher by 1.9& this morning. coming up, dan arbess will join us with his take on the markets right now.

good morning and welcome back to "squawk box. we're live at the nasdaq market site among the stories front and center, u.s. fund managers have been trimming their holdings of financial stocks average u.s. mutual fund reduced its stake in financial companies by about 1.1 percentage points

during the second quarter. that is the biggest decline in about five years u.s. automaker will release their august sales figures this morning. analysts think u.s. sales rose 1.2% last month compared to the same month last year general motors will not an august number, it now only reports on a quarterly basis and crazy rich asians stopped the movie box office for the third straight weekend, it took in about $28.3 million. the success as well as the latest mission impossible movie helped boost labor day box office by about 64% over of the same weekend a year ago. mission impossible was awesome haven't seen crazy rich asians yet. in other headlines this morning, colin kaepernick has a new deal with nike he is one of the athletes featured by the company as it

marks the 30th anniversary of its just do it ad campaign he tweeted believe in something even if it means sacrificing everything, end quote. kaepernick knelt during the national anthem during the 2016 season to protest racial injustice. as part of the new deal, nike will produce kaepernick apparel and also donate money to kaepernick's know know your ri campaign his lawsuit against the nfl is being allowed to proceed time for our special guess, dan arbess one of the things that you're highlighting is that globalism is one thing, but be careful what you wish for, it has delivered a lot and if you start messing with it, you may end up saying what was i thinking down the road >> and i think specifically, joe, in relation to china, we're reading old newspapers

china has been very clear in telegraphing what they are going to do. they were going to be the world's manufacturing workbench for a while. and then they were going to urbanize and then they were going to transition their economy to consumption. they are actually doing a spectacular job of creating an independent consumer economy that can exist largely without the need to dump products. i have a couple numbers here today china represents a third of global growth the united states represents 11%. china's gdp growth is 90% driven by consumption and domestic investment and our surplus, our trade surplus in the last ten years, has gone from 9.9% of gdp down

to 1.4%. while their deficit has gone down from 5.9% to 2.4%, all that should tell you that china is doing exactly what it said it was going to do. and this narrative that we've had dominating since really the election that our jobs are being on stolen by chinese because chinese are dominating manufacturing is absolutely wrong. not the case any longer. the chinese have the same labor challenges as we do, which are related to technology. it isn't zero sum game they get the employees and manufacturing or we do everybody is having less labor input in the whole economic process. >> but you mentioned there growth is consumption. and yes it might have been growing from ten years ago, but

it is remarkably low still for a company at its stage of development. and relative to the u.s. where consumption is 70% of gdp -- >> and i don't have that exact number now, but i remember 18 years ago looking at the number and it was sub 30% of gdp. today i think it is somewhere over 50% and rising very, very quickly. >> it rose and then it pulled back be again in the last couple years as they had to turn on the domestic funding and monetary policy to offset other pressures. >> and the funding is going into telecommunications and other things that are supportive of the technology economy so what i'm concerned about is that we're going into these trade negotiations with a narrative. and again, the narrative may be different from what we actually know in the background for example, henry mcvey kkr recently wrote, i don't know whether you've had him on, but he wrote a terrific paper from

his last trip to china in which one of the observations that he made was where we assume that we have a multihundred billion dollar deficit with china, that is because in our numbers, we're only counting direct sales, exports from the united states homeland, we are not including foreign subsidiary sales in china. apple for example is doing $45 billion a year of sales from its sub sird arsidiary in china ands growing 20% annually versus about $84 billion a year in the united states pretty soon apple will be selling more in china than it is selling in the united states and if we don't consider that, we're putting ourselves at huge risk now, tim cook has met with the president many times i cannot believe -- i'd be shocked if that wasn't a topic of conversation. so again, the narrative might be

different from what is really going on >> all you're talking about is trade. do you dispute the narrative that they steal technology from us we develop it here and -- >> absolutely not, but i think there are other ways to go about it in other words, we have -- >> yeah, play fair >> i agree with you 100% >> open the markets. >> i agree, but i'm saying that the mechanism for in-sencent advising them of slapping on tariffs -- >> where they a free ride. >> no, i'd line up with our allies -- i'll give you another example. take pollution china is dumping tremendous amounts of fluorocarbons, glass ticks into the ocean and causing tremendous pollution with its manufacturing. why don't we get together where our allies rather than fighting

over iran and sparking a trade war with our allies in europe, get together with our allies and make their environmental behavior an issue that we collectively punish them for it. >> so the subject of intellectual property, we line up with our allies and then do what >> bring them to whatever the relevant organization, the wto, whatever the relevant organizations are. my point is, we're a country that respects the rule of law and we believe in a law based on rules based global order that's what i mean by globalization. >> so how do you act on that is your outlook for the united states full blown trade war and then some? and how does that impact the equity markets or your view of chinese equities which are already down well into bear market territory

>> so i don't know whether we'll have full blown trade war. i don't think that it will be the case because i think that the administration is smarter than we give it credit for because we're all distracted by the president's tweets and his tactics. i think that there is a more -- i hope there is a more sophisticated understanding going on there where we will avoid full out trade war because trade wars beg thy neighbor trade policies everyone understands are not a good idea. i don't think that anybody wants them i don't think the president wants them the president wants a robust u.s. economy the president wants u.s. manufacturing to succeed that is all taking place china wants their own domestic economy to succeed and by the way, they have got 300 million millennials, as many as we have in the united states,

the millennial generation in china is driving the whole economic game over there and they are not interested in -- >> so you're interested in the chinese domestic consumer economy? >> big time. and by the way, to me -- >> regardless of what happens with trade, that is -- >> regardless what happens in trade, best idea that i've got as a stock idea, the chinese equities they have gotten killed. so i'd be buying more and are more because they are dirt cheap relative to their comps. and much more competent tentative. they have social media, e-commerce, finance all wrapped into one their entire ecosystems. and they are dominanting the choices of what goods and services get into the chinese

economy and the chinese millennial consumers they are the gateway to china. so when we're busy think that that we'll do better selling more track, to they are not looking for that and they are confining what is coming in by their own companies. >> those millennials might be a big cohort to want to get exposure to, but it misses the point that overall china has an aging economy apopulation and ty has to setoff that so the gdp will shrink >> and more people is not necessarily better when you need fewer people to generate economic value >> but those people that are retiring still need to be supported. and their debt to gdp is --

>> but you are looking at a growth vehicle. >> but coming back to the point that china could be strong relatively speaking, there are a lot of challenges there. just by arguing that there is 300 millennials misses the point. >> i think there are challenges, but i agree with what fred kempe said, if you think about it in an i win/you lose terms, not into to work there is enough potential in the global economy and in each of our economies to figure out a way for everybody to get what they want. the united states and china in particular as the two largest economies in the world our our economies are interdependent so we have to find a way to access their consumers, they have to find a way to live well to get i will on and by the way, they are becoming more and more independent of the united states every single day they are buying their oil denominated this juan from saudi arabia which has implications

for our treasury market as well. and implications for the dollar. do not underestimate the power of power of their long term -- >> and just to tell you and melissa i think hit the nail on the head, people that criticize the current administration's approach on china always say the same thing as a default position and that is when you say what would you do, we've had 20 years of this, we've gotten nowhere, and they always say bring in our allies and they always say that, but then what? and you came up with it. we've tried bringing in our allies we've gone to the wto. >> and i'm not criticizing -- >> no, but that is the default position immediately bring in the allies and confront them that way. we've tried that i don't know what we do, but the intellectual property is a real problem when we develop all of it here and spend all the time with basic science and put all the seed money in and all the

venture capital and then all of a sudden they just adopt it as their own, that can't stand. who do i stand like? that will not stand man, that's what the dude said >> and that is why they are busy trying to hire- -- >> so we'll all stomp our feet together, eu and everybody else? we've been doing that for 20 years. >> i have no problem, no problem, i totally support the idea of the administration confronting china. >> don't sound like it >> no on, , no, on intake lengtl property theft, no problem at all. i'm big rule of law guy. when i say globalization, i mean the legal strunkts and tcture a processes. however, i think it is dangerous for us to mix metaphors, to ride in on tariffs and talk about jobs, we should say what we're

trying to do we want to penalize china because they are stealing intellectual property. it isn't jobs, it isn't this, this isn't that. let's say what it is as opposed to taking an apple and fighting an orange race >> have you heard that default position a lot especially with critics that don't really offer on an alternative, any type of solution to how we deal with this that is what they always say >> but that is not what i'm doing. i'm open minded to -- >> so half trade, half intell t intellectual property theft is what we're trying to accomplish. you need to play hardball. >> and it will have its own intellectual property soon presumably with all the investments in ai and it will recognize its value presumably >> say way with wto. >> we'll be out of the wto by

then >> and you could also say not peel l. putting steel and aluminum tariffs was necessarily needed >> we have our own issues with canada i think and when i think of the trade war that we supposedly started, there is something to what larry kudlow said, we've been on the receiving end of a trade war for the past 20 years just taking it and now we're responding to what was already out there. >> i think there is a lot of rebalancing needed but i don't know, could have been done in a more polite way >> thank you, dan. still to come, has auto correct changed your life or have you cursed it for sending embarrassing mistakes via text whether you love it or hate it, we'll introducei invenin inventor when we come back .

apple expected to announce new versions of the iphone next week the iphone dominance is a key driver of their march to a trillion dollar valuation. the inside story of apple's design process is told in creative selection, a book by

the former softwareventor of aut so take us back to when you were working on the team secretly developing the iphone before anyone kind of thought apple was going to go that one of the crew pal paucial par touch screen typing. >> it was part of the concept for the original iphone. again, you mentioned the older devices that had the smaller screen above and that hardware keyboard below with the plastic keys a lot of people like that. but you see the concept for the iphone was that the keyboard would be in software so they could get out of the way when you weren't typing and this made room for apps. of course once apps became available, the product took off. >> made room for a bigger screen of course as well. auto connect therefore then was

a crucial part of making typing easier for us when we'd never used this new formatted keyboard it was something that helped us and sped things up initially >> right of course that blackberry keyboard had those plastic keys, you could feel them with your fingers. and so typing on the iphone, it was just a sheet of glass. so maybe you found it hard to keep track of where you were so the idea was with auto correct was to give you software assistance so that it would figure out what meant to type. you would just go as quickly as you could and the software would help you type what you wanted. >> if we go back to the late 90s before the iphone came out, apple was predominantly a computer company, what unleashed the new innovation, what allowed you to come up with this new product and do you think the company today still has that or the new levels of the iphone just small developments as opposed to that ground breaking

switch of what you were part of? >> back when i joined apple in 2001, you mentioned the ipod, at that time it wasn't even out yet. mack was the company's main product. but it had a 5% market share so where i think it started steve jobs' vision for the company. with products like the ipod and the iphone, he wanted to make the company relevant in people's minds. and of course that has worked out pretty well. >> but i think the question is at this point with this sort of incremental updates to the iphones, the sort of revolutionary aspect of those product launches have largely gone away. it is an update to the phone there may be bigger screens, some things around the edges can the iphone be revolutionary again, can there be another

product unveiled that just knocks the socks off of people >> i think there is an ebb and flow to it these paradigm shifts take a while. i think there is potential we forget how successful even the apple watch has been so i guess we'll see, you know, what comes in the next couple of years. >> though the competent tigts you'd have to say today is fierce that the level. it is had to pick with the top other phones that they compete with do you think apple will continue to demand this $1,000 a year upgrade cycle from its consumers or is there is a risk that that breaks down. >> well, we haven't seen any sign of that yet i mean, clearly with the trillion dollar market cap being crossed a short time ago, phones are still pretty popular

and with these new products coming out next week, there seems to be quite a buzz about it people are excited to see what these new products are going to be >> what do you think is the next big innovation software-wise that any phone company out there could -- are there further innovations to auto correct, further innovations to the keyboard >> i'm really interested in technologies like augmented reality. so that you could take your phone and you could point its camera at something in the world and it would tap into the network, the hardware and software network and all collaborate to give you a feature like say you're traveling in a foreign country and you don't speak the language you can just point the camera at a sign and it will just translate it and so that kind integration of all of these features, the hardware, software, the networking makes for some pretty exciting products.

>> joe needs that just for when i'm speaking >> i'm going to go home and write code and solve some of this you probably know how to write code >> that was my job most of my days was sitting at a desk staring at a computer screen writing code. >> someone sent me the beginning -- i read like two pages and i was -- i'll let other people write code. i decided that >> we all have our strengths, joe. >> we all have our strengths >> if you want to be a mogul, you have to pursue the things that you want to do. >> you deserve to do that. >> i need confidence then. i don't have it with the -- i'm intimidated by code writers. >> ken, thank you very much. the book creative selection is out now. coming up this morning's stocks to watch, plus cue the countdown clock. the government employment again due at 8:30 eastern on friday.

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top tech execs heading to capitol hill this week we'll tell you what to expect. colin kaepernick signing a new deal with nike, we'll talk to the author of "big game." and tropical storm gordon is targeting the gulf coast we'll show you how companies and residents are preparing. the final hour of "squawk box" begins right now ♪ live from the most powerful city in the world, new york, this is "squawk box."

grmt aood morning and welco back live from the nasdaq market site in times square, i'm joe kernen along with melissa lee and wilfred frost. everything is down now nasdaq down 22 or so and the s&p is indicated down about 6. pretty good week last week a little bit of weakness at the end. we have a lot of data, a lot of politics, a lot of things happening. kavanaugh, trade, jobs report. we're back full force. it is september. so shake it off. summer is almost over. some leaves are on the ground, it has already started >> autumn. >> autumn, yes autumn leaves. >> a nice time >> september is nice >> september and october is best >> september can be better than april a lot of times

>> september and october probably the best full stop all year >> i agree with that >> except that you know what you're -- >> christmas >> no. dreary is coming >> that is why that two on month period is the golden time. >> november and december is still fine, it is by late february that you are a bill bored of the cold. >> there is a sonnet about the changes that you see in me is like -- and it is not a good feeling when you're at that point. like if you compare your life to the late fall -- >> are you feeling like fall, joe? >> well, i understand the metaphor and i prefer spring. is that okay >> i understand. this transcends a weather discussion at this point here are the stories investors will be talking about. front go front go tropical storm gordon is expected to become a hurricane and hit the northern gulf coast by this afternoon or evening the national hurricane center

already issuing a warning for the alabama and mississippi coasts two platforms have been evacuated and wti prices right now higher by 1 p.9%. and in washington, senate judiciary committee will begin hearings for brett kavanaugh hearings are expected to last four days before a vote is taken on whether to send the nomination to the full senate. chinese founder of jd.com was arrested in minneapolis friday suspicion of criminal sexual misconduct he has thousand returned to china. jd.com says he was falsely accused and released without being charged or bail requirements minneapolis police say they are treating it as an active investigation. shares of jd in the pre-market are down by about 3% a few stocks to watch, nordstrom was rated buy. goldman notes that nordstrom is running a successful full and off price corporation.

the stock upgraded to outperform saying it sees odds of qualcomm to settle the dispute. and facebook is under some pressure after a downgrade to a neutral from a buy the move based on the view revenue growth is slowing and long term profit margin guidance doesn't provide a case for the long term outperformance shares down by 0.9%. and sheryl sandberg is going to the hill on wednesday and within this downgrade, they do mention the need that facebook will have to keep spending in order to sort of prove to congress people that they are doing all that they can to actually police their site so we'll be watching these shares automakers will release their sales numbers and phil lebeau has more. you love this, just ready made news for you every time it happens. >> yeah, and it is interesting

as watch it over several months, you see he whether the market is slowing down or remaining relatively strong. when you look at the august number, overall the expectation is that we'll see a sales rate of about $16.8 million that is a strong sales rate. steady demand is what we're hearing from dealers there are targeted incentives, primarily looking at cars that are seeing most of that, but overall the stating rates when you look at the last five years and we've been up over 17 million the last three years, this year we're at about 17.1 million vehicles not close to the record high of 17.5 a but not bad. it would be the fourth straight year with sales at a pace of greater than 17 million. take a look at shares of ford. friday they said that it would scrap plans to import from china the focus active automobile starting late next year. we'll be watching ford sales today, there is some expectation

that perhaps, perhaps, they could eclipsed by fiat chrysler for the month of august in terms of sales also a note from lmc automotive, taking a look at china auto sales, this came out overnight, third straight month if you include july now that sales have dropped month over month in china. a couple factors there there was the expiration of a tax that was an incentive. and also lower consumer confidence particularly on some of the areas that are being hit hardest by the trade war with the u.s., those in the export cities along the coast volvo outreporting u.s. sales up 12.2% in the month of august and overall sales in china up 18% as we wait to see whether or not volvo does move forward with an ipo later this year. back to you. >> phil, great stuff thank you very much. let's get back to the broader markets.

joining us now, when we look at the market performance in august, the u.s. really only significant bright spot and then toechld foreign m developed foreign markets, emerging foreign markets really disappointing. is it time for any of those to play catch up and if so which asset classes? >> a lot of that depends on the dollar and of course monetary policy certainly the gap between u.s. and nonu.s. markets so far this year has been enormous and a lot of that can be attributable to the divergent path of earnings growth. earnings in the u.s. are growing at 23%, earnings elsewhere are glowing at about 8% and decelerating so there is a very large gap of course the story is the tax cuts boosting the u.s. picture while the rest of the world does not have that. and meanwhile we have the fed in

tightening mode, that tightens liquidity conditions so we've had this tale of two markets. but the dollar are looks like it is maybe peaking here. market thinks that the fed will raise rates three more times and probably end the cycle by mid 2020 while the ecb of course as you know will start tapering soon and maybe even start shrinking its balance sheet by 2020 so the market starts to look past that policy divergence and if the earnings picture starts to narrow, then certainly there is room for nonu.s. markets to start outperforming again. but i don't think that we're quite there yet, but a lot will depend on the dollar and liquidity conditions here in the coming few months. >> what is your view on the strength of the u.s. economy and whether it does support continued tightening to the up side >> it does indeed. we worry about the up turn in inflation. fed has target 2% and we are litter at that and coming up through that for the last six, eight months.at that and comingp

through that for the last six, eight months rest of the world and in particular emerging markets are doing relatively poorly, so the u.s. benefiting in many ways, particularly u.s. rates from the problems in turkey, arrest agge. >> whethers of the ecb, uk, japan, do you think that they can surprise investors as to when they start to tighten policy relative to the u.s.? >> one would expect the emerging market issues to start subsiding later this year. also brexit of course continues for a while longer but at the end of the day, there is an end date to that an hopefully we'll get more clarity on that. and finally europe we begin that to subside as we begin to see both qe end later this year. >> embedded in that assumption though is that the dollar is capped, correct? even with the rising interest rates here in the united states. that the dollar won't go too much higher.

i mean that would be a major obstacle for em. >> that is true, but the issue is that several emerging are markets have separate stories that have very little do with much else. and that are creating some panic attacks by some saying that u.s. rates is better despite the risks of the fed raising rates and also inflation >> and what do you think about the valuation levels of u.s. equities at the moment >> so the forep.e. was way too high in january at 19.5. it came down to 16.2 which is really a great result when you consider that the market didn't really have to go down very much it went down 10% and now back at new highs. it has come up to about 17 or so on again expected earnings and of course we have a huge boost from the fact that earnings are growing at 23% year over year. q1 at 23, q2 around 23, 24 so the valuation picture i think

is good. it is not great. but really the three moving targets always driving markets are earnings, valuation and really financial conditions or interest rates and so earnings of course are booming, but they are peaking here it looks like 23%, 24% will be the peak at least in the rate of change valuations are okay. and then it really just comes down to how much more does the fed have to go if inflation stays 2ish and the fed does another three or four hikes and declares victory basic li, then i think we're all systems go but if inflation forces the fed to go wherebasicli, then i thinl systems go but if inflation forces the fed to go where it has gone had to go many other times, then it is a different scenario but i think that is a story for 2019 so for 2018, i think that it is more of the same as we go in to

the end of the year. >> okay. gents, thank you very much we'll leave it there coming up, colin kaepernick signing a new deal with nike, we'll talk about the nfl's anthem controversy with mark leibovich, author of big game the nfl in dangerous times nike shares are down 2.25% right now. and later tech execs head to the hill we'll tell you what to expect when srysabe ahel ndrgnd jack dorsey face lawmakers this week.

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oh boy. wi-fi fast enough for the whole family is simple, easy, awesome. in many cultures, young men would stay with their families until their 40's. welcome back to "squawk box. let's take a check on how we're starting up for the first trading session of september it looks like we're actually in the red. s&p looking to be down five points, dow by about 75. the nasdaq looking to open lower by 20 points nike doubling down anthem controversy signing a new deal with colin kaepernick as part of the 30 year anniversary of the just do it campaign. and nike shares are indicated

down about 2.25% right joining us now is mark leibovich, his new book out is called "big game, the nfl in dangerous time." i referenced the "washington post" piece to put it in perspective that the anthem policy is still in flux as we're kicking off and controversy drags on with little compromise on the horizon and nike decides to step jerry injerry -- jerry into the middle whofrlt thinwhole thing. >> the nfl has dragged their feet, they have created this vacuum of action on any level at all. and you have a corporation like nike to say we're taking a stand, we'll be the issue here donald trump has done the same thing periodically he has sort of filled the void, he has taken a stand it is a total mess the nfl basically had this handled after last year.

i mean it was a bit of a nuisan nuisance, it was a flare-up, but at the end of the year, football rehe inadvertented to itself and people love football and then all of a sudden the league decided to mess it up and trump weighs in again and now we have this muddle this won't be resolved by the time the season starts >> and anyone hoping that we'd all just start getting along together again, it is naive. >> we have until thursday. >> i don't want to get -- nike, there is hashtag this, hashtag that in terms of -- >> right >> i think nike, i'm a little cynical about it because i think they know exactly what they are doing, i think it is calculated to play to the virtue signaling of being a corporation that is doing social justice i think that they know that millennials are the people they want to sell to mostly and most millennials will agree with nike for this and i think will take the flack and i think that it

will probably be good for sales down the road. >> i think stylistically it is a bold move. and i think what nike tries to be about now is just boldness. and that is a millennial -- >> reminded me of the benneton where they did some crazy stuff. >> right, but at the same time -- >> this is more mainstream >> it is mainstream, but it does cast into relief the kind of mealy mouthed way that the nfl has gone about this. and the fact that -- >> but when you see -- it just occurred to me, sacrifice everything and this is what the ad says, no matter what the consequences you may not tie the guys, you may try to say it has nothing to do with the kneeling during the national anthem, but some people do think about guys that are overseas or even cops sometimes that are sacrificing

>> they themselves think this, yes. >> and a guy playing a game for millions of dollars and now getting a million dollar contract sacrificing everything, that will ring -- >> no question that it will be a very divisive issue. >> polarizing. >> and this kind of dresses it up around sort of madison avenue and nike and coolness. >> and we haven't said sweat shop though with nike now. >> just now. yeah, i did, but now they are no longer employing people in sweat sho shops. >> and amazing that they could have run this ad and stopped short of donating to the fund. but they are going all in. and we're seeing in the shares this morning that they are down 2.25%. there could be other reasons why the shares are down as well. but do you think -- >> like what >> i'm just saying who knows >> but it is only 2%, only one

day. six months from now, who knows unless sales are actually up adidas was already making in-roads into nike's turf. but they are not necessarily a u.s. company >> moore broadly on the nfl, how long do you think it is that the majority of the live coverage is on streaming platforms when you see particularly the moves that some are making in foreign sports >> yeah, we could be maybe ten years out on that. that to me is the paradigm shift. and what they are really concerned about as far as, you know, the monopoly within football has been a television one. they even today have like 70 of the 100 top rated shows in america last year were football games. that will change and this is all going to be eatsen away at and what is interesting in this culture, these are not the titans of industry that you want sort of looking your way

forward. >> how long is nike's nfl contract >> it's a long time. >> nfl stuck with nike >> and i think they know it, almost embraced it >> so they are happy about it? >> look, nike knows what they are doing. this is calculated they had months to talk about it >> i agree which is why i think i'm kind of cynic cynical. >> and i think it will call attention to an issue that is hurting ratings. i'm shocked that trump hasn't tweeted on this yet. >> i am too. >> i'm sure he will in the next 24 hours or so, the president will weigh in. and that is what he does football ten year ago was one of the most unifying institutions in the united states today it is by far the most polarizing sports brand we have. and again it is an opportunity for the nikes and donald trumps of the world who think that they have their head in to the

culture to seize on it >> espn might be the most polarizing sports brand we have. but espn is right there. >> you yeaare right, espn is a little -- >> i am i don't know if i would say sad, but i'd like to just watch and not think about anything else. >> i would too i do think that big takeaway in this book is that i think football will survive because of the greatness of football. and i think that it will survive in smite of the last of people who run and oent gawn the game i point. >> nike is everywhere. u.s. open, tennis, not just football >> yeah, the culture war dips in even deeper. >> all right mark, thank you. maybe we shouldn't pretend like i'm shocked that there is some divisiveness going on here >> we're not shocked at all. one of the reasons that i wrote this book, it was a break from

politics and you realize there is no break from politics in anything these days. >> you're right. mark's new book is "big game, the nfl in dangerous times." if i were roger, i'd be like i'm making $45 million, i can deal with this. >> and a new contract. >> could be worse, i could be making $43 million his new contract is 40 plus. >> well, it could be 200,000 over 5 years, so -- or $200 million over five years. >> it is not soccer. football, we're talking about this other thing we do here in america. he is like what? where is arsenal, manchester >> you are now a soerk fan -- soccer fan >> yeah, i am. so progress. >> you just assumed we were talking about songer coming up, chick-fil-a wants

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good morning welcome back to "squawk box." among the stories frond and center, two oil drilling

companies are joining forces transocean says it will buy ocean rig in a cash and stock deal worth about $2.7 billion. obviously a fairly small company compared to rig obviously. and gambling revenue jumped 17% in august compared to last year, that marks 25 straight months of revenue gains for the chinese territory. and today the institute for supply management releases its august manufacturing index while the government is out with july construction spending, both of those reports out at 10:00 eastern time germany's largest lender will be demoted from europe's leading index of blue chip companies. deutsche bank says it will drop out of theyou're stoxx 50 index. market cap has plunged 30% just

year to date sorry, one year over 12 months down 27% the market cap about 22 billion euros now versus hundreds of millions -- billions of course for america. pay chext out with its monthly small business report. both job growth and wages declined while hours worked continue to rise joining us now, president and ceo at payc chchlt ex. overall decrease in wage growth has fallen, index fault gone three consecutive months what is the overall picture of small business, still optimistic >> yeah, the nfib index, if you think about the optimism index, very high. consumer confidence still high i think we will see the growth over last year some small business jobs because the market is so tight. it is very difficult for small

businesses to find the employee. what is interests is even though hourly earnings is down 2.2% which is pretty interesting, the weekly earnings are up about 2.7% because more hours are being worked so about half a% higher hours being worked, so when they are not finding the folks that they need to fill the jobs, they are working everybody a lot more hours than they were >> but the rate of hourly earnings growth stands at 2.21%. so workers are working longer hours because the job market is so tight, but wages aren't necessarily going up that much >> right the hourlies are picking up some of that in overtime and so forth because you are seeing the weekly earnings up about 2% seven. but hourly earnings at about 2.2% wage growth is what you're seeing and what it looks like is the higher earners are really getting less of an increase and those front line minimum wage

kind of folks are seeing the bounce of minimum wage increases across the country they are actually seeing about 3.5% wage increase on the front line is where they are he seeing the biggest wage increase. >> if i'm trying to figure out what industries on what sectors might feel the greatest wage inflation pressures, where is the tightness in the labor market by sector, where is the tightness in terms of skill level? >> yeah, in skill level i think it is across the board but probably the hardest to find are information technology developers there is so much in software development that those are the most difficult jobs to find. and small businesses who have the small development shops probably having the hardest time because they don't have quite the flexibility and recruiting power of the larger businesses the ones that are seeing the biggest wage increases are of course the lowest wage earners so those that are make minimum wage in other services, discretionary services, leisure

and hospitality, even though they are down from a job be growth from last year, they are still the strongest opportunities for jobs unfortunately, they are the lowest wage. >> can you write code? >> no, joe, just like you, i better stay away from that >> you are lucky you got it job like a while ago >> why would you say something like that to a guest that we have on regularly? >> because he is not cut out for anything else now in this -- neither am i i don't know what we'd be doing here you know what i might do there are not enough truckers. i still think that is a romantic sort of, you know, like cowboys of the road. >> going to automate that too. >> yeah. so got a few years but marty, me and you -- as kids, you have to learn how to write code, but it is hard i feel bad so you can't >> no. >> i wasn't insulting him, just saying he is -- >> it came across as one

>> well, ceo of paychex, keep that job >> can you do a spreadsheet? >> i can do that >> dinosaur. >> you got the e-mail thing going? >> with auto correct and someone else wrote that. mar marty, thanks. >> you can turn the car on in the morning? >> i have someone else do that now we're counting down to friday's jobs report, but there are several other big data points before that steve is here as you can see >> i'm just wondering if we should do that other news we were talking about, maybe get some red banners splashing on the bottom should we wait until they are ready? >> let's go for it >> carney in front of parliament saying he might be staying on. >> yeah, crucial thing here, he has admitted that treasury and chance that they have approached

him to discuss that topic. >> you are so kind discuss that topic >> so they are discussing it that is the news and so therefore thought that he probably will stay on 37 originally he get an eight year term he said i'm only doing five years. they convince him to do six. and now it looks like he will stay for the full eight. >> so i'll read you the headline it says i'm willing do whatever i can to promote smooth brexit when asked if he will stay says finance minister and i discussed this, announcement in due course says cannot make the announcement now >> treasury would have to make it, but it does sound like that he will stay on. this will really an note brexiteers because they feel like he has been too political anyway so the treasury as well is often seen as being the dooms sayer about brexit because phillip hammond is the remainor. >> carney was a cogoldman sachs guy who was governor of the bank of canada. became a global monetary policy

rock star in the financial crisis i think >> across the uk you mean? >> around the world. he was very well regarded. >> people know his background. >> that's what i'm saying. >> the thing he is hit for in the uk is that his salary is so high and he came there as the rock star you're saying he was and he is paid four times what the central bank governor is >> i want to talk about the week ahead. it is a big week ahead nobody cares >> i would never say that. but i think that you have some good stuff to talk about >> you're right. let's take a look at the week ahead. back to work we're calling this because this there is a lot of stuff on the econ calendar ism manufacturing report, construction spending and light vehicle sales. this will tell us a lot about the trajectory of growth in the third quarter. international trade tomorrow thursday, adp. so when you get to wednesday and

you have no adp, roll back the tape when i told you it would happen thursday because of the holiday. ism services on thursday leading to payrolls and quarterly services survey which is increasingly a bigger part of the forecasts that are out there. let's look at the outlook for jobs adp looking at 190 that is a nice graphic payrolls also 190 because the government is the difference between the two. unemployment seen ticking down by a tick to 3.8%. wages still 0.2% and there is the july payrolls, so something of a bounce back. i want to talk real quickly, where are the workers coming from take a look at the not in the labor force number which is up about a million and change it is kind of flattened. so you have people retiring and dropping out of labor force. but it is not going down, but it is not going up. and then on the way out i was trying to calculate this, take a

look at the next graphic which shows the floes in and out of the labor force. those going from employed into -- out of of the workforce into not being in the labor force, it is about even with those flowing into the labor force. so it has gotten to a point where the baby boomers are retiring and other people are coming in. and that is really the bottom line i don't know if those people would have been wearing nike shoes or they burned them, but it is interesting, you have this kind of balance where people leaving the workforce and people coming into the workforce are about even at this point so that 95 million of people not in the labor force isflattened w >> and dollar overall surprisingly flat for august despite all the talk of dollar strength >> well, it did strengthen and then flattened out there are so many different

cross currents we could discount it you have the fed with this higher rate than everybody else. and so that tends to strengthen it and then you have issues like somewhat higher inflation, you have all these trade issues that are out there that seem to go both ways. and as the trade things comes off the boil, the dollar weakens because a lot of these currencies weaken in response to hire tariffs >> steve,s eve as ever, thank yu very much. >> do you like the fall? >> i love the fall i take time off in the fall to fish in the sports man's capital of the world which is the bronx. >> "game of thrones" >> yes >> fall means winter is coming and winter is not great around here >> so down beat this morning >> i like spring i like things blossoming >> he's using it as a metaphor for life is the problem. he's in a mood this morning.

>> the thing about me, i get to leave the set now and you have to stay. >> believe me, i'm counting. >> a mixed message >> can't code. can you code >> what? coming up, sheryl sandberg and jack dorsey will head to capitol hill this week and face questions from congress. what investors need to watch when "squawk box" comes right back need a change of scenery? kayak compares hundreds of travel and airline sites

so you can be confident you're getting the right flight at the best price. cheers! kayak. search one and done. omar, check this out. uh, yeah, i was calling to see if you do laser hair removal. for men. notice that my hips are off the ground. [ engine revving ] and then, i'm gonna pike my hips back into downward dog. [ rhythmic tapping ] hey, the rain stopped. -a bad day on the road still beats a good one off it. -tell me about that dental procedure again! -i can still taste it in my mouth! -progressive helps keep you out there.

to stay. when "squawk box" comes right

welcome back let's take a look at futures we seem to have arrested, the dow looking to open lower by about 63, s&p by 4, nasdaq down by 21. facebook shares down 1.2%. and this ahead of big hearings on capitol hill this week. the senate committee oin tell against will hold a hearing tomorrow to address the issue of russian meddling into the 2016 election the panel invited executives to testify. julia bourse continue horstin ht what we should expect. we hope the senators and everybody involved did a little bit more home work than the last time that they had facebook exec on the hill. >> well, i would expect that since a fair amount of time has passed and this time around to explain what they are doing to present election interference. sheryl sandberg along with jack

dorsey will testify about their responses to foreign influence operations facebook tells us we can expect sandberg to focus on the platform taking responsibility around preventing answer detailing facebook's investment in a combination of technological improvements along with new hires and facebook's clollaboration with other experts jack dorsey tweeted that we acknowledge our responsibility and commit to greater account ability. i plan to share our learnings an proactive measures we're taking. we will listen, learn and engage in any practical ideas we hear looking forward to the conversation the senate intelligence committee also invited alphabet ceo larry page, but as of now, he is not scheduled to attend. the committee jeekts erejected offer to send ken walker this is ofis after president trp

tweeted that google is biased and raises antitrust concerns. jack dorsey has a second hearing tomorrow afternoon for the house energy and commerce committee, it will address whether there is bias in twitter's monitoring of content. dorsey tweeting that there he will show the company's quote commitment to impartiality, transparency and account ability. so a lot to cover tomorrow afternoon. >> yeah, we'll be watching thanks joining us now, national correspondent for the atlantic he is author of "world without mind." ful it will be available in paper back next week will we see the partisan we see every else tomorrow or are both sides sort of united on trying to make this something that maybe it really is a concern i can imagine it would be a concern to both sides.

>> yeah, i think that big tech right now is the meat in an ideological sandwich they are getting attacked from the left for the role facebook played allegedly in the election of donald trump and the way that they enabled russians to on influence the election and on the right they are being attacked by trump and others for being ideologically balanced and in my view they will be fending things off in essentially all directions and a lot of the big questions, they stuck they don't have great answers to some of the questions about how -- a lot of people want the internet to be cleaned up, they feel like discussion is very uncivil, that there is a lot of trolling and harassing and the thing is a mess. and they want these companies to excerert more power but as soon as the companies assume that responsibility, they are essentially admitting that they have become too big, that they -- and that opens them up for the possibilities of

antitrust enforcement or greater regulation >> so you have all the big book advances are you buying tech or selling these names? can you tell us what investors should take away from all this in terms of whether they stay long, add or sell positions? >> i think it is interesting the way the companies have been thrust in on the spotlight it is clear that facebook has just positioned itself in the worst sort of way where it has allowed itself to become the poster child for a lot of these attacks on big tech. we see google which has been attacked by the president and they have managed to essentially avoid the spotlight for a long time i think it is really interesting that larry page is essentially the absentee landlord of big tech he is the guy who is not on the magazine covers, he is not submitting himself to testimony. and so i think that they have had some -- they are just better

practiced in dealing with the politics of these issues >> melissa has a segment call pops and drops >> no, that has been gone for years. like a decade. thanks for watching, are you gk franc? >> don't your viewers need to know whether to buy or sell the stocks >> i think the big question, franc, you know, even if there is regulation is that going to threaten the core business models of these companies or/or will they have to increase spending in order to satisfy congress saying we spend this many billions of dollars to help solve that problem isn't that enough? either scenario bad for investors. >> right i think they'll try to spend more to try to stave off regulation i don't think that regulation is necessarily bad for them over the long run i think the thing they fear is anti-trust enforcement you see the ways in which these

companies are scrambling to write new privacy regulation that will be favorable to them you can imagine all sorts of ways that facebook and google and get together in a back room and try to script privacy regulation they'll script something that will be bad for their competitors. i don't think that regulation is necessarily a net negative for these guys. >> is amazon part of this? or just social media companies amazon is part of it in they've been attacked by donald trump. the amazon "washington post" and getting attacked by bernie sanders. he attacked them for their treatment of workers last week i think that amazon, in a way, escaped the debate about regulation and kind of more than these other guys because they're not in the thick of these discussions about how to regulate speech, about privacy, about the election aftermath so, in a way, they've managed to skirt the issues that have proven so troublesome for the other companies. >> okay. all right.

franc, thank you author of "world without mind. some other people, melissa, on your show. instead of yelling at me when i'm trying to help -- >> i wasn't yelling you. i was correcting you. >> the new segment is called "would you rather". >> there are many. >> trade it or fade it. >> why didn't you -- instead of like lashing out -- >> i was appalled you haven't watched the show in that long. when we return, jim cramer is back and he's at the new york stock exchange

welcome back let's get down to the new york stock exchange jim cramer is back and he joins us now hey, jim. >> great to see you! thank you for reading my book. i very much appreciate it. i hope it's still a good read. >> it's a great read particularly your first one. i love it. >> thank you. >> nike is down now 3% it was down half a percent earlier. are you surprised by the

reaction >> well, you know, something was tweeted by adam schefter saying colin was on payroll for a long time they were just waiting. obviously this is controversial and we're talking about it i don't think it's going to matter this much it's an opportunity, i think nike is a controversial company that involves cool cool is what foot locker said gets sales i think there are a lot of people who think it's cool we're in a divided nation. >> does the nfl, more importantly, fight back this year with ratings? you'll be there for the season kickoff. >> i will. down at the comcast center i think a lot has to do with contests not just playing the jaguars at wembley. i hope you'll join me. it determines we need match ups. we need the giants to be better. sorry, giant fans. we need some of these big areas like the bears are starting just maybe i took a bear last night

in fantasy but i think big markets have to step up and small markets have been dominant jaguars? i love jacksonville. been there many times but wow. hello. >> thank you very much, jim. later on cnbc, don't miss john hennessy at 1:30 eastern e? a basketball costs $14. what's team spirit worth? (cheers) what's it worth to talk to your mom? what's the value of a walk in the woods? the value of capital is to create, not just wealth, but things that matter. morgan stanley

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september logs the worst average for stocks the dow, nasdaq, and s&p each dropping more than half a percent. all right. oh, my god make sure you join us tomorrow everybody is back tomorrow "squawk on the street" is next ♪ good tuesday morning welcome to "squawk on the street." i'm carl quintanilla with jim cramer who is back and david faber. welcome to september seasonally the worst month of the year for stocks. futures are red ahead of a busy few days in washington europe down about a percent. oil above 70 as tropical storm gordon nears the gulf coast tonight. stocks near historic sighs but said to start september with a slump. facebook is falling