it is 5:00 a.m. in wilmington, north carolina more than 1 million people up and down the carolina coast are ordered to evacuate as hurricane florence takes aim it's a category 4 storm. nafta negotiations picking back up today between america and canada can a real deal finally be hammered out the white house says it is coordinating a second meeting between president trump and korean dictator kim jong-un. sonos posting a big loss. and a new study sheds the dirty truth on those hand air

dryers, why your pant leg may be better it's tuesday, september 11th, "worldwide exchange" begins right now. good morning i'm brian sullivan it is always a day of remembrance on 9/11, wherever in the world you may be, i hope you have a happy, healthy and safe day. that includes unfortunately the southeastern part of the united states, because it is facing down hurricane florence. the now cat 4 storm is gaining strength in the atlantic evacuations have already been ordered for more than 1 million people up and down the carolina coast. we'll have more on this storm coming up in moments first here's your morning setup. not getting a lot of help from futures. dow futures are mildly lower now. your one big number today that has to be japan. the nikkei 225 is having a good day, rising more than 1% chinese stocks did fall again.

europe is little changed in the early trade. let's talk more about the markets and your money going forward. grace peters from jpmorgan private bank joins us now from london grace, we have talked about the four ts, tech, trade, trump, tariffs, maybe the one thing we have not talked enough about is the amount of repatriated money still to come into the united states because of the fifth "t," tax bill how much more money do you think we'll see come into the united states that could also go into stock buybacks helping to give another leg, a floor under the u.s. market? >> good morning. absolutely we pateiation repatriation is a key driver for the u.s. market this year. already so far we had extremely high levels of share buyback announcements. many of those announcements have not been executed. that should continue to support u.s. stock markets into the end of the year. of course it's not just companies buying back their

stock. it's also m&a, which is also reaching record high levels as companies seek to buy growth, particularly heading towards the latter stages of the cycle we've seen lots of it so far, we think it will be a recurring theme into the end of the year >> how much will it matter, grace? >> it is an incremental buy in the u.s. equity market when you look across which sectors benefit the most tech, healthcare, energy are sectors that benefit from overseas cash being repatriated into sectors where balance sheets are already pretty strong therefore excess capital can be returned so we do think it will be one of the key drivers. those are the three sectors that we're most focused on at present when it comes to capital allocation >> what else looks good out there then >> so, the u.s. is still our preferred equity market. other than capital deployment the sectors we're focused on, as we head towards the latter end

of the cycle, those offer secular growth as well as si as sicklar growth. the opportunity is in emerging markets and most notably china because of the large draw back in chinese equities over recent months you have seen the stimulus coming back into chinese markets from policymakers. that will be another month or two until we start to see that stimulus showing up in the data. we do think that will afford asian equities some support going through the end of this year >> you believe with china's drop, it's cheap but cheep inap good way >> when you look at cli these v chinese valuations they have pulled back, that shows the market and investors are fearful that the market will

significantly roll over. whether that's a consequence of the deleveraging that the chinese are undertaking or trade overhangs that have been much discussed. our sense is that chinese earnings will prove to be reasonably resilient we think gdp will slow into next year, but to a manageable level and corporate earnings will remain robust. we think the pullback is overdone on negative sentiment and it's time to start dipping our toe back into asian equities >> the biggest risk to your thesis right now is what >> trade it's trade ultimately ma hasthat has a hug impact on sentiment and that's drawing down earnings multiples. that's the contraction we've seen including in the u.s. market around the world, global indices have seen a contraction in the pe multiple representing a greater risk premium we think the number one reason

for that is trade, following on from that, the u.s. yield curve, the flattening we've seen in the twos and tens spread is something else we're watching. >> grace peters, appreciate it we'll see you soon thank you. >> thank you your top stock story today, sonos first quarter earnings report lacking earnings. the stock tumbling meg tirrell is with us this morning on "worldwide exchange." you see what i did there >> i did >> they have to face the music missed a beat. >> i missed a beat on that one too early. >> it's late >> wow >> if you don't sleep, it's late >> that's true let's talk about sonos its stock went on a romam rolle coaster ride yesterday it went up 13% then fell as much as 15% in extended hours after the maker of wireless home speakers reported a third quarter loss of $27 million, nearly double the loss sonos reported in the same

quarter last year. revenues were down 6% from a year ago sales of wireless speakers rose 1%, but revenue from home theater speakers and components fell sonos is one of the first companies to make and market a home wireless system in a letter to shareholders, the ceo cited the timing of new product launches for the dip in revenue. he is focusing on growth from the upcoming holiday season and the expansion into japan sonos is still up more than 20% since its ipo on august 2nd. >> that's a stock we have to watch. maybe not the release and public debut you want >> i cover biotech, i'm used to that volatility. >> we have a hand dryer story for you, you're the biotech medical expert you have to hear that. phillips 66, an s.e.c.

filing shows that warren buffett's berkshire hathaway has cut its stake in the company to under 5% as of the end of august that means berkshire could sell the rest of its shares without further public notice. so you're on notice. japan's renaissance struck a deal to buy idt. who is renaissance a sluemicon dublgt educsemicond and casey's general stores, look for that stock to rise. better than expected second quarter results. same-store sales rising. let's now get back to your top story, that's the category 4 massive weather alert. hurricane florence gaining strength in the atlantic as it eyes the carolina coast.

it's projected to make landfall by thursday, mass evacuations already under way ahead of the storm. jack deangelis is heading into the storm. she joins us live from carolina beach, north carolina with more on preparations. good morning what a difference a day makes. when we got here yesterday, it was sunny. people were walking on the beach. they were swimming, eating outside. this morning the air is thick. you can feel the moisture. the boardwalks are all wet, it feels very heavy, very muggy here something is certainly brewing as you mentioned, it's hurricane florence projected to be a category 4 storm. it is supposed to be one of the strongest to hit north carolina in a long time the governor saying this state is right in the bullseye what's interesting here is the president is weighing in already, telling folks that he has granted fema assistance, homeland security assistance as well saying people should be prepared and that the country is with

them what is happening on the ground here in terms of that preparation. state of emergencies declared in north carolina and south carolina as you can imagine on these coastal towns mandatory evacuations. in wilmington people are being asked to leave by 7:00 a.m. this morning. it's causing a little hysteria they're not sure where they can go at this point people have been taking it seriously, but the approach was wait and see what happens, which can always be a bit of a dangerous one. the authorities wanted people to get out of these dangerous areas as soon as they can. last night we went to gather our own supplies we saw there were food stocks in the supermarkets but water is very, very difficult to come by. gas lines getting quite long as people are preparing for this, some always in the storms i've been in hunker down and will stay through it. but of course everybody is saying it's better to be safe than story and it's better to leave rather than stay in harm's way. back to you.

>> jackie what are you hearing about the possible length of the storm? from what we understand, a big storm. fast-moving in the atlantic, it will slow down when it hits the coast. it's likely to hit thursday morning. how long is it supposed to stick around >> it's supposed to stick around for a while. that's part of the problem here. once it makes landfall, if it is, in fact, a category 4, it is supposed to hover. that rain will collect so we're talking about many, many inches of rain. on the coastal townspeople are worried not just about the winds that could be 130 to 150 miles an hour, they are worried about flooding last night the manager of our hotel says he expects his lobby to be under water. that's something that people are very, very concerned about the length could be long hitting on thursday, lasting throughout friday and of course from the other storms that we've covered, the potential for the aftermath to be difficult, taxing on people with power outages, road closures, damage in the streets, downed power

lines, trees, et cetera. there could be a lot to get through with this one. some people are even saying that it's going to be a monster >> we know that peninsula you're on on southern north carolina and carolina beach, we want you to be careful. we'll see you in a few minutes >> thank you on deck, ten years after the financial crisis, you might think that debt levels would be below that of a decade ago if you did, you would be wrong up next, what may be the next big risk to the markets and your money. we're on washington watch again. trade talks picking back up with canada today the key things that need to be on your radar when we meco back after this 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. all week as we look back at ten-year anniversary of the failure of lehman brothers, we also need to look ahead at what risks lurk out there for another financial crisis somewhere down the road what many market pros are talking about now is not tech, trade, tariffs, or trump it's debt. even as debt has become a four-letter word on main street, a different story on wall street here are the five big themes you need to have on your long-term radar with regards to debt since 2008 there has been actually trillions in global debt growth. global death levels are far higher than they were a decade

ago. not a total terrifying things, because the markets have grown, economies have grown, but corporate debt, global debt, much higher. as a percentage of company's gdp, corporate debt levels have surged back to about 45% of gdp in the united states. that's around pre-crisis levels. number three, when you issue debt you have to repay it. payback time is coming for the next five years between 1.5 and 2.1 trillion in bonds is coming due globally every single year risk four, do you remember the acronym clo? remember covenant light loans? they're back and back in a big way. number five, one reason we talked about energy and oil so much on this network, much of the debt growth has been in the energy space, and it is tied to oil prices if oil prices tumble, much more

difficult to pay back all of those debt those are your five big debt themes to focus on let's drill down in one part of the debt market that has people starting to worry. not fearful yet, but starting to worry and quietly rattle some nerves that's the massive growth in low quality investment grade debt. we'll call that the triple b market triple b is really the lowest level of investment grade debt, just before junk that's according to s&p's ratings. that market has surged according to informa global markets, the amount of triple b rated debt has gone from 700 billion at the beginning of 2008 to about 3 trillion today. that's more than a 300% jump in the lowest quality investment grade rated debt level now one big reason is deals. companies like at&t buying time warner, united technologies and others have wracked up debt to afford and pay for those huge

acquisitions to be sure, nobody right now is saying there's any kind of imminent debt crisis on the horizon. this is a slow-moving money train. but if you want to understand what the longer-term risks may be to the market, they're there behind us. if rates keep rising, if global economies slow, we may once again find out that debt is a big-time four-letter word. let's bring in peter boockvar, chief investment officer at bleakly advisory group. peter, i want you to comment on what we just talked about. nobody is saying we have imminent -- i want to make that clear. it's not that debt is going to cause an imminent collapse, but should we be worried about the fact that corporate debt, investment grade debt and sovereign debt levels have grown in the last decade >> this has been where the excess has been when you have rates at zero for seven years and multiple rounds of qe, everyone looks at where is the bubble this time

it has been in credit and corpora corporates, certainly the sovereign bond land. just to enhance the corporate debt to gdp ratio, if you include all business debt, that number gets to about 72% so a total of $14 trillion you throw in a 100 basis point increase in interest rates, you're talking about 1$140 billion of added interest expense. >> yeah. i guess i wonder, peter, what the absolute risk is here. it's not expected that we'll see oil prices collapse again. so the energy side, take that out. we have interest rates that are slowly on the rise in the united states so we're not expecting a quick big jump that could send that down if we had to point to some bigger single risks to the global debt market, would it be simply the inability of u.s. companies to pay

each rate hike raises the cost of servicing that debt you have trillions of dollars that are libor based loans around the world and the fed will raise at the end of september, that will raise the cost of funding by another 25 basis points it's the foundation for trouble if -- >> if. >> we'll get another economic downturn that's the economic cycle. so you have a debt wall with an economic downturn which is driven by rising interest rates because it gets more expensive to service this debt >> i was talking to david aiter, we talked about the risks. he said we're at 45% of gdp on the investment grade side. we're basically back to pre-crisis levels, which sounds scary. whenever you say 2007 on anything in the financial markets, peoples hackles go up, as they maybe should he said right now it's not a huge deal. here's the risk. when gdp or if gdp were to slow

down, suddenly that percentage grows, the denominator has simply gotten smaller, and it makes that debt level look a little more unwealdy, which could affect psychology. >> if you add in total business debt, the highest that ratio got was in the first quarter of 2009, that was the depths of the recession. the problem is that in an expansion we're at the highest debt to gdp ratio that we've seen similar to what we saw in '07. >> but again, it's a weird spot we're doing this big piece on debt, i'm thinking it sounds scary, but everything is so good, debt is not always a four-letter word it's not always a negative thing. if boockvar and corporation wanted to issue 100 million in debts to build a factory to provide 500 million, that's not

a bad thing. >> as long as you can service it there's a lot of cash on corporate balance sheets, but that's in the top 25 big companies with most of those being the top five technology companies. that will be the argument against that >> did your yeeyebrows raise wh i said clo >> ten years ago, 25% was the clo market you mentioned how the investment grade corporate land has gotten junkier with the triple bs, the clo market has gotten junkier, too, the highest percentage of "b" credits as opposed to more "bb" credits and in the high yield market there's "c" credits. so we've gotten junkier, the

real test is the next downturn when you cannot service that >> peter boockvar, debt a four-letter word, thank you. >> thanks. still ahead, it may be breakfast, but we have a lunch alert. subway could be ditching one of your favorite go-to meals. those details ahead. ene latest on hurricane florce as well. we're back after this. - i love my grandma. - anncr: as you grow older, your brain naturally begins to change which may cause trouble with recall. - learning from him is great... when i can keep up! - anncr: thankfully, prevagen helps your brain and improves memory. - dad's got all the answers. - anncr: prevagen is now the number-one-selling brain health supplement in drug stores nationwide. - she outsmarts me every single time.

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good morning welcome back 5:25 on the east coast let's check the other top headlines including preparations for remembrances for 9/11 today. phillip mena is in new york with more today marks 17 years since the september 11th terror attacks. memorial services are scheduled at the sites where four hijacked planes crashed that day. president trump and the first lady will be in shanksville, pennsylvania remembering the 40 victims of united flight 93. in arlington vice president mike pence will speak at pentagon in memory of the 184 lives lost there. in new york, hundreds will gather at the national 9/11 memorial and museum to read the names of the 2,983 victims at the world trade center, both in 2001 and in the 1993 bombing the senate judiciary committee is set to vote on thursday on brett kavanaugh's supreme court nomination democrats want to delay the vote

until next week. and now dramatic video of a bus crash in san francisco that injured the driver and three passengers the bus veering across the median into oncoming lanes before slamming into a dry cleaner's. police and a bystander freed the trapped driver there. still to come, a dallas-based money manager who has never before been on cnbc. we'll give him the "wex" welcome. and sonos slumps and the dirty truth, a new study confirming what you already knew about those high-power hand dryers, use your leg our expertse numbers to examine investment opportunities firsthand. like a biotech firm that engineers a patient's own cells to fight cancer. this is strategic investing. because your investments deserve the full story.

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. mass evacuations under way hurricane florence taking aim. a big warning on big tech. why one market pro says a pullback may be coming and it's not just your imagination. why those hand dryers you hate are as dirty as you think. all that and more as "worldwide exchange" marches on right now ♪ welcome back thank you for being with us on cnbc i'm brian sullivan hope you're having a great start to your tuesday. it's time to get to your top stories. meg tirrell is now back with those. >> brian, here's what's leading cnbc.com hurricane florence gaining strength in the atlantic

the category 4 storm is expected to strike the east coast by thursday we have a live report coming up. shares of sonos having had a wild ride, the stock falling as much as 15% after the maker of wireless home speakers reported a third quarter loss of $27 million. this is sonos first report as a publicly traded company. russia launching the biggest war games ever with china. as many as 300,000 russian troops are expected to take part in large-scale military drills starting today and ending next monday a former national security official telling cnbc the pentagon will be watching the war games very closely brian? >> meg, thank you very much. we'll see you in a bit nafta negotiations between america and canada pick back up today in washington. u.s. trade representative robert lighthizer will be sitting down with canadian foreign minister chrystia freeland. discussions were not expected to resume again until the end of the week. the white house also says it is coordinating another round of

talks between president trump and kim jong-un of north korea this comes after the north korean dictator sent what the white house describes as a "warm and positive letter to the president asking for a follow-up to june's singapore summit." the timing and location of a second summit is still unclear here's how your money and investments look right now stock futures are mildly down right now. keep in mind they were up big this time yesterday and the markets ended down the ten-year yield ant 2.95%. china weak overnight the nikkei had a good run, and a mixed trade in europe. mildly high in some markets, mildly lower in other markets. outside of stocks, let's get more on your markets with a global look at commodities and

currencies oil market is something to watch. a lot of fighting in iraq. keep an eye on that. so far no disruption to output but that could come. euro/dollar at 1.16. comex little changed let's give a warm "wex" welcome to a man who has never been on cnbc, his name is mark giambroni. he's based in dallas, we appreciate you getting up so early. good to see you. >> good morning. thanks for having me >> thanks for coming on cnbc now let's get down to brass tacks. no let's talk about market risk we've been talking about trump, trade, and tariffs, the fed, china and interest rates your job is to protect and grow your client's assets when you sit down with them and they ask you the same question, what do you tell them is the biggest risk to their money? >> sure. keep in mind that we're a

bottoms-up shop so we think about these global macro issues. interest rates being the first clearly the interest rates are rising it's a concern for the market. it's a concern for long duration assets it's something to think about. we think that helps us on the value side >> how so? how does that help you >> the way it helps us, if you think about as rates rise, most of the value for growth companies are based on future discounted cash flows. so the value stocks have most of the value based on today's current cash flows so as interest rates rise your discounting those cash flows back to growth companies at a higher rate. today's assets are worth as much as they were before. on a relative basis they become more attractive. >> lun leunless interest rates fast enough to slow the economy down, they bring the economy down, earnings slow down, multiples go up artificially >> always a risk

completely agree at this point it doesn't look like we're quite there yet, but the reality is if there wasn't anything else going on, then the fact that the fed is raising rates at this point would be a big concern because generally this leads to the next downturn. the market tends to rally as rates are rising but we tend to go too far. and then exactly what you're suggesting happens >> do you have a macro market view you're a stock picker. do you have a view on the overall market are things still good? >> there's a bifurcation in the market with the u.s. clearly leading that i do think that's going to continue for a while the u.s. economy is strong earnings are growing extremely well because of that, yes, i think it can continue longer. are we late in the cycle are there warning signs with rates rising, things happening in the eurozone, with china trying to delever? lots of those things are adding to external pressures. yes. it's a concern >> you have identified -- this is your job -- some companies

and sectors that you think look even better. >> yes >> the cruise lines -- every ship we hear about is packed >> yeah. >> the economy is good but carnival, norwegian cruise line holdings, they have had a rough go the last couple of months why are you big buyers of these stocks >> i would mention royal in there also it's a great product for the consumer 20%, 25% discount to a land-based alternative high satisfaction rates. more than half the people tend to repeat. clearly they like it if you look at that, then the cruise lines themselves are growing share within the vacation pie and on top of that earnings, if you look at the earnings growth for the companies, it's strong over the next several years, yet the multiples have come back, there's a concern over supply growth supply growth is picking up. we think it can be well absorbed in the market. the two highest growing groups are the 30 pluses and the 7 pluses

if you're a consumer group and you can get the millennials and baby boomers to agree -- >> those are the bearish cases one is supply growth the new ships are like we have 70,000 people on one ship. you are a texas guy, oil prices that price is going up sounds like you're not worried about those things >> it's not that it is not something to worry about, it is, but the newer ships are more efficient. 20% more fuel efficient. we're moving to alternatives like liquid natural gases. so the new ships are more efficient, higher returns. at this point oil prices have impact but it's not high enough yet to make our future outlook look poor >> you and i chatted earlier you noted to me that the performance in auto parts between oh ril'rileys auto partd

auto zoou advanced auto parts is something like 8%. but that doesn't prevent you from buying the stock. why? >> we believe these dunnturns are temporary. o'riley, the margins are almost twice that of advanced auto parts. we think margins can double at advanced auto parts. >> you think the new management is that much better? >> number one, yes so blocking and tackling is important. number two, just being able to, you know, execute appropriately and you look at the gold standard and say is there a structural difference here the answer is no if there's not a structural difference they should be more similar than they are, which drives value for advanced auto parts. >> advanced auto parts, the cruise lines, you're a buffalo bills fan, you need more blocking, tackling, everything else >> we need it all it looks like. >> you need taylor to come that's my hokie talking.

we hope to see you again on cnbc >> thank you back to your top story what will be your top story all week long. we wish we had better news on hurricane florence but we don't it's a category 4 storm. it is gaining strength it is gaining steam in the atlantic evacuations have been ordered for more than 1 million people on the carolina coast. let's get back to jackie deangelis in carolina beach. >> i want to start by paraphrasing a tweet from the national weather service saying that it can be ecalm in the eye of a hurricane, but this is a dangerous category 4 storm and dren residents should heed all the warnings these waves are picking up a little bit as i mentioned before it's getting muggy, but you stand here and you ask yourself what kind of storm is coming? it could be a regular storm, or it could be the potential for this category 4.

that is what everybody is worried about at this point. states of emergency have been declared for north carolina and south carolina the coastal towns, a lot of folks urged to evacuate. here in wilmington that will start at 7:00 a.m. this morning. this is well in advance of the storm that is not expected to hit until late thursday and get more serious brewing into friday but of course the authorities always will tell you it's better to be safer than sorry it's better to leave sooner rather than later. the problem is a lot of residents here don't know where they're going to go. several of the folks i spoke to yesterday said they'll just try to move inland a lot of them have pets. a lot of them are taking care of elderly people these are some issues that we faced in previous storms, in harvey and also in irma. the danger here, of course, are the winds that could potentially be as strong as 130 to 150 miles per hour with the storm of a magnitude like this. but also the storm surge

some are saying we could see ten feet of water on this beach. also, of course, the potential for the storm to hover and really just pour and pour and let a lot of rain down that, brian, would cause severe flooding a lot of concerns in north carolina at the moment as residents prepare for florence's arrival. >> a lot of discussion about hurricane hugo back in 1989, a lot of talk about a bigger storm than that. where you are, i believe, jackie, carolina beach, are you on the peninsula you have the bay on the other side of you as well? >> we have the river on the other side of us >> the river >> the cape fear river the concern is that that river could rise up and add to the potential for flooding one of our producers mentioned that his brother has a home here he came, he boarded up, he left. he expects that his home will essentially be under water so the expectation is not that

everything will be just sort of flow through normally in terms of the process of a storm here the expectation now is for devastation and a lot of people are saying that this may not be or this may be as bad as hazel, in the 1950s, but also some hurricane names like matthew, floyd, fran, those ones hit north carolina pretty hard >> these are names that everybody down there would like to forget. jackie deangelis, thank you. >> exactly still to come on "worldwide exchange," the end of a lunch era. one of subway's most iconic menu items could be on its way out. and scores and more if you went to bed early last night we'll give you the football game highlights the jets happy the lions sad. we'll still give you the scores. . luckily for all your hard-to-wash fabrics... ...there's febreze fabric refresher.

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good morning, chicago. time for your top trending stories. meg tirrell was nice enough to come in early for you. >> stunning images of hurricane florence as seen from space. these images captured from the international space station. the category 4 storm is taking aim on the carolina coast. more than 1 million people have been ordered to evacuate ahead of the storm >> that is -- wow. that is a monster.

>> yeah. >> terrifying. >> really scary. an iconic fast food offering could be on its way out. starting this month franchise owners will be allowed to decide whether or not to offer the famous $5 foot long sandwich many franchisees have complained about the slim profit margin it can cost more than 4 dollars for the stores to make them. >> is it iconic? is that an iconic sandwich >> you think of the song >> what's your choice. give me your sub of choice we'll buy you lunch. you came in early. >> turkey sub with cheese. i'm not allowed to eat cold cuts right now because i'm pregnant >> you can't have cold cuts when pregnant >> i know. >> or sue shsshushi >> i know. >> we put this story for you >> i love when

germs they think of me a study published in the journal of hospital infection says hospitals should consider ditching hand dryers, the reason is they spread germs not only on your hands, the sink, the floor -- >> they just spray the germs everywhere >> the study found that restrooms that used jet powered hand dryers can harbor more bacteria than paper towels big paper towels funned this st funded this study. >> a couple things here. there's a european tissue symposium, which we knew, is it just the ones where you -- the newer ones where you dip your hand in like a toaster or also the old school ones? it's like a single -- >> from the synopsis of study,

don't know, they didn't make clear. >> we always thought i'm just cooking the dirt on my hand. now we sort of confirmed that, and you're spreading it around, blowing it around. >> part of the problem is you don't wash your hands well enough >> here's the worst part of the story. we did a story two weeks ago about those trays at the airports that they have more jerels th germs than the toilet seats. if you're at an airport with the hand dryers, you have the dirty trays, the dirty hand dryers >> no wonder everybody gets sick when they travel >> it's not the plane. >> it's probably the plane, too. >> it's the little thing you pull down, the tray. that's the dirtiest part >> is it >> so i shouldn't lick those anymore? >> probably not. though we did learn that on unite the flights cross-country yesterday, they didn't have food, you may resort to that >> i heard that from michelle.

>> how could you eat it? wow have to go down your hands are so filthy. thank you very much. this week marks ten years since the collapse of lee mrman brothers, considered by most to be the epicenter of the crisis we are looking back with a documentary "crisis on wall street." here's a sneak peek. >> i have never been in a war. i never had people trying to shoot me we felt like we would get shot we had to survive. we pulled out every relationship, everyone we knew hank paulson, you can say you were competitors years earlier, none of that mattered. it was about morgan stanley and the system just like what lloyd was trying to do, we were all trying to figure it out. we didn't want to go the way bear sterns had gone or the way l leman brothers had gone.

it wasn't about i want to be cute or take advantage of anyone if i had had all the money i needed and more, i would have given the loan to goldman sachs or another competitor, especially one like goldman so well managed and run wall street is famous for these equity syndicates and bond syndicates believe it or not everybody works together i think at a time of stress we're all in the same business, the same boat. so it wasn't about trying to take advantage i would have helped anyone we could have helped to survive if i had the wherewithal to do it the problem is we didn't have the wherewithal to do it >> you can watch the entire special tomorrow night at 10:00 eastern. still to come, a big warning on the big tech stocks the f.a.n.g. names one market pro says a pullback is coming. we'll challenge him when we come back ambition? helping people get what they want,

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. 5:52 here on the east coast. jim, dow futures are down 70 i know you're watching the nasdaq more. we've seen some weakness in the nearly unstoppable tech stocks, with the exception of facebook, but do you see weakness ahead? >> if the weakness is going to come t will come from there. those things that have done the heavy lifting. any time we're in a transition leadership it will be awkward. i don't think this is the beginning of a bear market we just need to look for something else soon. if amazon trades below 19.25, that's where i think we'll have this somewhat short-term awkwardness in the market. i think, you know, 2850 seems like a reasonable level in the s&p if that breaks, 2800 even.

at the end of the day the underlying story is still positive there's two things that are relatively negative, that's rates are going up, september and december, they probably are going to move. and then the trade talks trade talks heated up last night. every once in a while we'll realize that china may be in this for the long haul that will take some getting used to >> can the market go up if amazon, alphabet and others do not? that's the question. if those stocks, five or six names that we talk about every day, if they can't go up or don't go up, can the rest of the market go up >> yes, i believe it can over the last couple of years there's ban few een a few instaf that about a year and a half ago, they had difficulty and the banks did well it was a net neutral probably a bit negative because those names have been so important, but i think leadership sometimes gets transferred. when the baton is passed,

there's a lot that can go wrong in the short-term. you look at a little story, a little story like china going to the world trade organization, you see how the market reacts. to me it's more the way the market is positioned more than the fundamental story itself that might trigger the deeper correction again, i think we're pretty decent here. i'm looking to sell puts probably around the 2850 level and look to buy the market there. >> is there one stock more than others we need to watch? >> no. i'm looking at the banks if rates are going up -- and the banks have done well i will look at good chart patterns there but i think the overall market is probably best >> the banks, we'll watch the banks, jimmy, just very quickly. obviously we have this big storm, we were watching energy prices as well do you think there will be a disruption in the markets because of the storm i hate to talk about storms in that term, but it's a monster

and there's a lot of concerns out there. >> no doubt about it, the first storm, florence, that's the one that is supposed to hit the carolinas, that one we're not really worried about related to energy markets there's one unnamed that is supposed to hit texas, and people have their eye on that if that storm was just occurring by itself now, i don't think the market would be worried about it the fact there's a bigger storm ahead of it puts everybody in a hurricane frame of mind and we realize the potential that could happen that could develop into something bigger >> jimmy, appreciate you joining us we do appreciate it. you're welcome back any time >> thank you finally your tuesday rbi, today there's nothing random about it 17 years ago today, a day no one in america will forget 3,000 people lost their lives, more than 6,000 injured, many more families and lives impacted forever including those of the first responders who ran in as everyone else was running out.

in this age of political separation, let's remember we were all new yorkers that day. peace be with everybody. "squawk box" is next

good morning more than 1 million people up and down the carolina coast have been told to evacuate as hurricane florence takes aim it's a category 4 storm. we'll take you live to the coast. the u.s. and canada resuming nafta negotiations in washington today, a few days earlier than expected a live report card from d.c. and shares of sonos are plummeting after the first earnings report as a public company. we'll tell you what's driving that selloff on this tuesday september 11, 2018 "squawk box" begins right now.

♪ live from new york where business never sleeps, this is "squawk box. good morning, everybody. welcome to "squawk box" here on cnbc we are live from the nasdaq market site in times square. i'm becky quick along with joe kernen and andrew ross sorkin. let's look at the u.s. equity futures. you will see that right now it looks like there are red arrows across the board dow futures down by 56 s&p futures down by 3. nasdaq down by 6 markets were mixed yesterday the dow was down, the s&p 500 and the nasdaq were up here is a weird statistic for you. the three major averages have not risen together on the same date since august 29th we'll see what happens today we should point out the dow transports rallied by 1.8% yesterday closing at an all-time high up by 206 points 1.8% also we should talk abou