yes. when we do we launch? unfortunately, in 2 or 3, hours. why the delay? cognizant is helping banks use digital technologies at scale to advance speed to market. with the dow down more than 40 pau point, good morning, it's 8:00 a.m. at facebook

headquarters and "squawk alley" is live. ♪ good thursday morning. welcome to "squawk alley." i'm jon fortt with sarah eisen on the floor of the new york stock exchange >> got to begin this morning with the markets stocks again selling off all three major indices deep in the red. technology again the worst performer, the nasdaq composite now tracking for a loss of more than 4 per% for the leaf

bob pisani has more. >> important thing the usual suspects industrials and tech weakest that we have seen. terrible materials also on the weak side. we're at the low of the day, but with we have bounced twice already from this level. we'll see if we can hold it four or so on the dow m again, there are three outcomes trade, three outcomes, number within is we get a trade deal, number two, we don't, but we don't get a tariff increase and negotiations continue. this is sort of what the street is hopeful for then the third, the worst outcome for the markets. a lot has been made about the fact that the chinese markets are underperforming and are down notely bly and while that's true, that shouldn't give everybody a lot of comfort remember, the shanghai is up, was up 30% the best global performer on the year, off of that highs right now 10% or so. but still among the best

performers better than 20% this year. and our trade names here aren't doing any better than the shangh shanghai just this week, the big names, deere, big chemical companies, free port, best buy, these are names associated with trade and china. not doing well down 6, 7, 8% the other sector down 6, 7, 8% and micron down about 12%. remember something for all this mess this week, the s&p 500 is only 3.5% off of its historic high. shanghai's a little bit more perhaps 10 or 12%. this comes of course right behind me is going to be the post for lyft tomorrow still 44 to $50. there's talk it might price in the mid middle l of the range, but we won't know what those numbers will be, but we'll be here tomorrow morning. >> bob, thank you. steve joins us now to talk about

this market. barry, how do you tell investors to game out these china trade talks from here? >> yeah, when you look at the trade talks, of course that political system, the situation leeked into the economic system. i think the chinese just sensed the u.s. was in a weak position and they decided to aggregate parts of the deal. that ratcheted up the tensions and now we're dealing with it in the market >> is can you buy the market on dips like this >> no. on friday, we wrote a report saying that we reiterated a 750 s&p target down .5% from that price level i look at numbers and 0.9% real rate is worth a 17.5 pe multiple on this year's number. we were at 157 for s&p earnings. the street was $165. we saw weakness in tech, health care and energy earnings and we thought the market would

come in to reflect that. you can get to a 17.5 multiple even if the fed cuts rates a quarter, which i don't think they'll do i've been saying and i said it on your show recently, eggs are going to have to break before the fed turns chick b b. they're not going to be that preemptive >> yes, you did. you said that quite recently barry, how did the market get this so wrong? the state of negotiation on trade with china was the tweet misdirecting, because normally, the gets these things right. apparently not >> you know the funny thing about the market is they always try to look across the valley but what they experience is a canyon and anybody who's been hiking knows what that feels like they had run up the cyclicals, talking things like tech and industrials and materials at the expense of the defenses. utility, staples and such. and when the nominal growth

outlook deteriorated, what you saw is the cyclicals were too high and the semiconductors was the poster child of that we're seeing the socks come in and break the 50 all right. looks like you got a target of 27.50. thank you. and now, a company losing more money than any other will probably end up raising more than any in a long time. uber ipo just a day away. shares expected to price tonight. latest report suggesting pricing at the midpoint of the 44 to $50 range. maybe even below that. weighing in now on what's looking like a case of lower expectations, opinion columnist at "the new york times" who wrote the uber ipo is a moral stain on silicon valley and diedra, who's followed the company through every twist and turn good morning, guys

the same company it was a couple months ago, but public market investors could get a good discount given how bad the markets have look ed this week it's not a great set up for existing investors for an ipo, right? >> yeah, i mean that's a good fortunate bit of timing for the public markets, but in general, i feel the worry with the company is a lot of the growth has gone out so i don't know if public market investors are going to get a huge deal from this in the long run either there's a lot of problems with this company we're seeing it in their relations with drivers there's more and more worries about their effect on traffic in major cities there's this plong term problem of what's going to happen as cars get more automated. just this sector in general.

though it's been huge life changing part of society for many people over the last decade or so. i still think this sort of big question marks over the company and their future despite that future, uber is in many ways, in better shape than it's been in in a long time. in term of management stability. board stability. at least the feel of the direction of morale inside the company. how does this set up look for you? >> i think they put a lot of the right pieces in place. you had dara come in and clean up travis, how they talked about brand and doing right by the drivers and customers. but what it comes down to, especially when you see the market selling off like this, what is is appetite for a company losing so much money you see what's happening with lyft not as global and the markets haven't responded well they had earnings this week and they looked good, but what public markets can't seem to

sort of accept so far are these enormous losses and the fact that their best growth days may still be behind them because they're going to the public markets so late. uber is a decade old >> still just talk iing about t set up and gaming this out i feel like it's been an exercise in curbing your enthusiasm between the lyft sell off, the market trade turbulence, the giant losses that everyone's scrutinizing couldn't it set it up for a nice pop? >> it could, but i don't know that it bodes well for ride sharing industry as large because the most anticipated ipos of f the lathe last few ye priced above that range. uriber says it's pricing at $47, giving it 86 billi$86 billion. yes that's above, but it's not as high as anticipated it could set up for a pop, but given all the questions about the ride sharing industry and i don't think we are any closer to

knowing about that to profitability than we were a few months ago >> i want to get to that moral stain that you talked about. because there are companies, facebook, one of the chief among them do you think it's juuber's business model we talkeded about the $10 an hour the delivers end up making. one of my last uber drivers in las vegas was a delta human resources employee making extra money so maybe that's okay >> maybe i don't know perhaps the hundreds or thousands of uber drivers may not think so what they're pushing for is a liveable wage and some worker protections. i think it's a moral stain in the long run where we have this system that this sector gets to evade minimum wage laws.

i feel like that's going to change doesn't seem tenable to me you're going to have to company with this huge workforce and get this special treatment it seems like in the long run this is going to change in some way, perhaps not classified as employees, but there may be some middle ground like regulation in the way new york has over ride sharing. a lot of skis may consider that for worker reasons and traffic reasons. and so i think that kind of the idea that we can tolerate this is just false. >> the worker strikes, the bernie sanders tweets, diedra, obviously the fact the contra contractors are core to the business model where do you stack this up on the list of ris b ks >> it is a huge risk i can't say this enough because drivers are are one of the costs that uber and lyft can control and even though it's a small group of people who are out there striking and protesting, there's still about 60,000 drivers pushing or have pushed

for regulations to change and that could affect the bottom line and the path to profitability that public market investors seem so concerned. >> all right, we are covering every step on the way to this ipo. you are right there. thanks >> nice shirt, too >> and coming up, we are all over this sell off the dow still down more than 400 points just over 1.5% nasdaq off quite a bit s&p. trade tensions continuing to weigh down the major indices stocks having their worst week in a month we discus where the opportunities are in the volatile market next and later, what to expect from jeff bezos and blue origin this afternoon morgan, what's coming up >> oh, we have a whole lot coming up, jon we talk about the new space race and billionaires behind it one of the most secrettive is blue origin the other company founded by

jeff bezos he sells about a million dollars worth of amazon work a year to fund it. he calls this the most important work he's doing. so in just a couple of hours, invite only event. bezos is going to get more public about those space plans we will be there and coming up on "squawk alley," what all this means for investors and quite frankly, humanity. we got a big show. stay with us and, you're probably right. electric just doesn't have enough range. it will never survive the winter. charging stations? good luck finding one of those. so, maybe an electric car isn't for you after all. or, is it? ♪

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dow is off about 370 points now. the only gainer is chevron all 29 other dow stocks are over, apple, boeing, caterpillar, all ratcheting up of tensions ahead of the big meetings in washington this week now that we're down almost 4% for the week >> looking at the breath of it, the comprehensive aspect of this piece of the sell off, it started out earlier in the week. i think traders were trying to put up a fire wahl between some of the china exposed areas i think what's potentially healthy about this as dicey as it is now, we're kind of building in a deal it's kind of rethink iing the whole case a little bit. we have to be clear about the fact we made a decisive new high

in the s&p last week we made a very, very tentative one and we've kind of come off that wesharply from there and sf the leadership groups like tech, software and some sickly ccyclie had a gut check so now, you say okay, was that the top of the trading range? how are we supposed to think of this this right now? on the other hand, we're down 4% if you go to 28, that's about a 5% pullback from a high. every year except two in the h risry of the stock market have had a pull 2017 and 1995. >> saying the context is healthy. >> right now it's healthy right now, tas pullback. now i think some of the areas that make it look like a little bit unstable is the volatility index bob was talking about. the vix futures. that's telling you traders are clinched up. there were too complacent. you can think about it as a short squeeze in volatility.

a lot of people r were leaning against the idea because it had been so common, so elegant for most of the last few months. that's getting reverseded. >> some people are looking at the debt markets saying there's not a panic there. yes, yields are lower, nothing extreme and also it's been healthy for corporate debt and a lot of companies have raised a lot of debt this week. >> absolutely. just a modest risk off tone in treasuries the markets remain open. we'll get through this a little supply in the stock market with uber and see how the tape absorbs that. so you might be building up to a moment here we're goeing to kno what's been bothering the market we get a deal or no deal then you get through these ipos in retrospect, we'll know if it was a mini panic based on the factor or if the market used up a lot of fuel and now it's going the other way. >> desive 24 hours

mike, thank you. now back to jon fortt who is at our new set at the new york stock exchange take it away >> thanks, sarah it's been a vol hit market for all kinds of stocks, especially tech twilio shares have been outperforming. the platform used by google is up more than 40% joining us now is the cofounder and ceo, jeff lawson great to have you. >> thank you great to be here >> so with all of this market v volatility, what if anything is the impact on a growing company like yours silicon valley does it spook customers? do you have to change the way you talk about benefits? >> we focus on the long-term and the long-term is our customer success and for our customers, the for them growing their business which means growing their relationships. build great digital relationships with their

customers, investing in customer experience and creating happy customers. in my market, growing your revenue, your base and keeping your customers happy, that's what companies do. then for us as a company, we went public on the day of brexit, so you know, these sort of things are just pfor the course over the long-term, the long-term, that's what we do >> i guess we forget about those. uber, one of your earliest and probably most effective case studies, talk about the effect of uber on twilio and the silicon valley ecosystem >> it's been a great customer of ours still one of our largest customers. mobile phones and computing. we're going to have that enable software companies to challenge and disrupt almost every industry out there and you know it's the case study that's often pointed to, but truly, the fact that you have mobile devices in every pocket

the power of cloud computing behind those apps and the cloud distribution from app stores and google and facebook. these, the ko alesing of these has meant software companies can change how we live our lives ef day and challenge the incumbents in every industry and vertical on the planet. what's the significant of them going public >> you have a tech titan, how we get where we're going and they've obviously made a huge dent in many of our lives in the way we get to where we're going. and it's a huge milestone for them to have been you know going from the challenger building an amazing company to then going public and i'm very happy and proud for all the people there >> you recently bought sangrid for $2 billion adding e-mail and voice messaging. it seems to be bringing you into

close competition with some of your partners that's talking about experience aadobe was talked about experienced clouds your streeblgic advantage over an adobe which is about to report by an e-mail capability to try and help their customers. >> it allows developers to add communications into the applications they're building. whether that's with our progr programmable apis or engagement cloud, which is about platforms developers use to innovate on behalf of customers, which is very different from a sass type model. we started with voice, then added sms then chat and video then facebook messager and what's app e-mail of course is the missing channel from the twilio story, so we are so excited to acquire sangrid, bring in the market leading market developer for e-mail so we can have the leading platform and be the

undisputed leader for developers looking to embed not just the marketing clouds, which is what the app a later typically does we address all the areas that developers are building into those apps >> and you're up more than 140%, but you went public in the shadow of the brexit vote. jeff lawson, thanks. investors need to remember that on a week like this, sarah >> absolutely. jon, jeff, thank you both very much we have more china news out of d.c. kayla. >> hey, the trump administration is putting down another stake in its hard line against china. this time, the fcc just voted 5-0 unanimously to block a license for china mobile to operate in the united states china mobile submitted its license seven years ago and the order accompanying this decision says that china mobile poses a national security risk to the

united states and should not be allowed to operate here. in addition, the fcc today said that it should potentially investigate retroactively approvals for other chinese companies to operate in the u.s. we'll see if anything comes of that and whether there's in timeline for that investigation. but certainly, big news out of the fcc at its meeting today to block china mobile's operations here sarah. >> i mean any sense, kayla, of the time iing of this as these trade talks are kicking off and the tensions are only gone from bad to worse in the last week? >> this has something that's been telegraphed for a while the fcc put this out a month ago signalling it was going to take this decision and because this license was applied for b seven years ago, this is something that's long been in the works. so it's not a surprise decision in that sense that's likely to throw a new wrench in talks, but it's just another signal of the hard line that the administration's willing and going to take against china this weekend after that >> cramer calls it hell week on

twit ter just now that is what it's feeling like when it comes to those tensions. thank you. dow is down 420 points the worst week of the year transports having a big impact getting slammed as well. take a look at the names having the biggest drag on the dow this morning. 29 out of 30 dow stokes are lower. it's those that have china exposure like boeing and apple getting hit the hardest. more squa"squawk alley" still ad

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dowment continues to sour. down 1.7%. 439 points looking at the worst week for the s&p and dow of the year. s&p 500 is down 1.5% pretty broad all sectors are in the red 2% declines for information technology and materials. the tensions and rhetoric really ratchet higher ahead of these

two-day meetings between the u.s. and china hours before a new tariff hike is set to go into effect on chinese imports european markets yet to close shortly. courtney reagan is on that not looking pretty >> exactly right this is a global concern so what's going on is not just happening here in the u.s. trade concerns also hitting the major european averages today as we get moments away here from the close. so the stock 600 now pacing for its worst week since early october. auto and tech stocks, those are load ed leading the losses in europe today those are two sectors that have heavy china footprints dime leh dame, that's the most of any other european car manufacturer. in banking, profits in asia

brought in more than 80% of the company's total this past quarter, so that stock logging the worst week in more than two years. tech and chip names in particular, they're also weighing on the major european averages asm international, one of the big laggards there, more than half of its revenues last year came from china. also several consumer names like swatch montclair, adidas. swatch generates more than 35% of its total revenue fs from the chinese market there's also fears about slowing economic growth and tomorrow, investors will get u.k. gdp so there's a lot of concern here really rip 8ing around the world. jon, back to you >> thank you, courtney with u.s. major averages near session lows, let's get to sue

for a news rupp date >> dpood morning, jon, good morning, everyone. here's what's happening at this hour north korea firing two short range missiles towards the sea according to the south korean military less than a week after test firing multiple rockets and a missile. north korean state tv described the weekend launches as a routine and defensive military exercise drill mean tile time, the u.s.s. abraham lincoln passing through egypt's suez canal amid escalations with iran. the u.s. dispatched the carrier and b-25 bombers to the gulf area pope francis issued a new law requiring all catholic priests and nuns to report sexual abuse to church authorities. the new effort is designed to hold the tath rick hierchy accountable for failing to protect its members. and prince harry returning to work three days after the birth of his son this to mark one year until the 2020 invick tuss games

he founded the event in 2014 for military personnel wounded in action you're up to date. that's the news update this hour guys, back downtown to you >> sue, thank you. watching this market sell off. pretty hard right now. the nasdaq is down 4% this week. today it's really the chip names in the cross hairs on concerns about the tariffs going into effect they could see price increases also lots of china exposure there. nasdaq is down another 1.5% right now. much more on the sell off. and late aero, is nis now the to break up facebook? senator richard blumenthal and his take, next >> big tech may be is no longer entitled to be as big as it is misuse of bigness can be in

violation of antitrust laws.

there are in checks and balances on facebook mark has no boss and he cannot be fired >> do you think facebook is dangerous? >> i do. i think facebook has become too big, too powerful. >> that was chris hughes calling today for the break up of the very company he helped create. this as tech stocks continue to take it on the chin once again part of the broader market sell off we are seeing today in a scathing "new york times" op-ed, the facebook cofounder called

the company a monopoly that must be stopped, saying it should p separateded into multiple companies, that its acquisitions of instagram and what's app should be undone and warning mark zuckerberg's power is unprecedented and un-american. joining us now is former twitter coo. nice to see you. you know this was a long and powerful case made by mr. hughes how did you react to reading it? >> well, honestly, i've been kind of harboring some of the same concerns for a long time about facebook's market power. and influence over o society you know as chris points out, they own four platforms that have over a billion monthly active users and the influence they have over the ideas that we see, the information that we share, the things that are deemed important, things that are

deemed truthful et cetera, is extreme. i think facebook's dominance has stifled information and i think honestly, antitrust skurtny is warranted. i don't know what the right answer is, but i think it's certainly warranted. >> do you think the should then shift to a european standard of considering harm to competition versus harm to consumers is there any other way to do this other than that explicit shift? >> i think there's been harm the to both, honestly. i think chris points out that it's not just you can't measure harm to consumers only by looking at how monopoly's affec on price is. >> how else can you do it? >> we pay in other ways in terms of the data we give it in terms of time and attention

and lock dm that it has over us and over society in terms of its ability to sway what people think and sway elections. so i think that just a standard of price is too simple and i think beyond that, i think the competitive impact also should be examined. again, i'm not an antitrust expert i think a call like this is if anything, overdue and i think some antitrust scrutiny is justified and important. >> i get that facebook is a lot larger and has more users and advertisers than twitter, but shouldn't twitter be regulated in a similar way than facebook is and has all the data and problems with interference in elections and everything else that facebook gets nuysed for sells advertising and user data >> absolutely. i think that the sector as a whole should be regulated. i think we need new rules and

laws around privacy and what these platforms can and can't do i don't think any of the other platforms, twitter, snap or anyone else, has accumulateded the kind of market power that facebook has, has been as aquiztive in terms of buying the what's apps and instagrams of the world and is sort of consolidated as much influence over social networking as facebook has i think chris' estimate is that facebook's platforms control 80% of the ad dollars on social media and that's likely to increase, not decrease as the ad networks on what's app and instagram grow >> it seems if you can make the argument for breaking up facebook, it's equally strong for breaking up amazon because if it's influence in e commerce. alphabet for its influence u in search and how things are found

on open web. do you end up breaking up every really large company in silicon valley if you start down this road >> i don't think so. i'm not trying single out facebook and say nobody else deserves scrutiny. but chris' article made a pretty compelling case for antitrust scrutiny of facebook there may be a compelling case for other companies. you hear politicians talk about big tech as if it's one thing. as if the influence of all of these companies is the same or their market power is the same i would argue in commerce the world is much more fragmented online commerce. even though amazon is the big goril gorilla. the world is much more fragmented than it is in social networks, so perhaps amazon deserves skrcrutiny, too certainly i'm sure it will come their way down the line.

but i think the case around facebook is particularly compelling at the time >> thank you very joining us today. >> absolutely. >> speaking of politician, today's calls to break up facebook comeing as we await privacy lment between the social media giant and the ftc which some law u makers say doesn't go far enough joining us from capitol hill, richard blumenthal who sits on the judiciary committee which has oversight. does facebook need to be broken up >> i think it does the acquisitions of instagram and what's app need to be to be unwound and there needs to be department of justice scrutiny about appropriate antitrust remedies and let's remember being legal. the misuse of that bigness and market dominance such as facebook has been doing by acquiring innovative companies before they can really reach

maturity and also copying new technologies so as to stifle competition and innovation that's why i think the antitrust department of the department of department of justice has to begin investigation. >> two poroblems with way i see it number one, consumers like it. it's free to use engagement is high businesses like it small businesses like it, like advertising. number tworks isn't it going to be hard to argue it's a monopoly given it has competition in most areas of its business from video to advertise something. >> it commands 80% of the social media revenue. it eclipses its rivals it reraces competition and yes, consumer, many of them, do like it but maybe they would like alternative to facebook. such as paying fees with out

advertising. greater privacy protections, which now are are totally li lacking. the first step is for the ftc to adopt a really strong remedy as a penalty for facebook's violation of the 2011 consent order. that is barely a tap not even a slap, but also structural remedies that protect privacy and consumers and second, antiskrut any such as what was done for the telephone companies such as microsoft. they got something a lolt better >> do we need new laws to do that >> great question. not to do the traditional antienforcement against big tech or a company that is involved in the big tech industry.

predator ak sigs and denial of competition. but there's a new approach necessary. not only to price effect, but also to innovation and competition. you know, the traditional antitrust approach has been if there's price gouging, then there's a need for antitrust enforcement. there's no charge to consumers because those consumers are the product that sell to advertisers. their data and information >> senator, is that a political land mine though the democratic party's already accused of being antiprosperity and antirich if you go after some of the most successful american companies that consumers love, isn't that a big political risk

>> that's not the reason to do it it's fundamental to our democracy that consumers be protected against misuse of their data information without their consent. and there's only in innovation and greater competition which gives them more choice and competition. we're not talking about attacking prosperity or jobs. in fact, increase jobs and prosperity in more competition and really facebook here is the only company that we're talking about. >> what about mark zuckerberg? i know you've been critical of the power he's amassed that was a big theme in the op-ed this morning by mr. hughes about mark's influence

what do you do about that? >> mark zuckerberg ought to be held accountable in the penalties for violating the consent decree that the ftc is now considering. i've written a bipartisan letter with my colleague, smart holly of missouri. there's nothing partisan or even political about antitrust enforcement. about making consumers whole when their rights are violated and mark zuckerberg dominates a company that in turn dominates the market and he should be held accountable for the violations of facebook, of this consent order that was adopted with facebook's approval. >> senator blumenthal, we're watch thg market fall hard the dow's down 400 points now. everybody's wonder federal government these new hikes are

going to go into effect in a few hours, 12:01 avm on friday do you support the president taking a harder line as these china trade talks kick off in washington >> i support a harder line against the chinese manipulate ing their currency and stealing our technology and taking our intellectual property and in effect, manipulating their own economic policies to increase their exports to the united states unfairly and inappropriately. i support that kind of hard line, but the kind of gamesmanship we're playing really worries me. i don't see the end game here in terms of the tit for tat that the president's playing with the chinese and it seems like a game of chicken that has royal ed the markets and understandably so. >> so just to be clear, you support a hard line, but not higher tariffs >> i support certainly driving a hard bargain and insisting on

fair treatment for our intellectual property, our currency, our products sold abroad we need to insist on a hard line >> senator blumenthal, thank you for joining us >> thank you and halftime is just a few minutes away scott wapner, what's coming up >> we have an exciting show coming up top of the hour. gabelli and cooperman. we're joined by two investing legends today. they're going weigh in on the markets, the stocks they like right now, politics, trade, so much more. always so much fun we're also debating what's happening in what was a leadership sector that shifts as a big name gets chopped today. it's our call of the day see you at the top of the hour m about ten away >> all right scott, thank you and we continue to have our eye on stocks, major averages down 1.5%. s&p less than that those tariffs on china do go

into effect potentially in just over st ho12 hours, so what shod the potential outcomes mean for stocks keith learner joins us now on the phone. keith, good morning. i wonder we're off the lows a bit. what is price d in and how much does it matter at exactly what happens tonight? >> it does matter. probably some type of cease fire if you get the increase from 10 to 25% that's 30 billion. we still think ultimately ste g stepping up gets done, but the marker right now is this resetting expectations because a week ago, most folks thought this was a done deal all in all, i would just remind folks with 3.5% off a record high we were up 25% off the lows and again, we tend to average pullbacks of 5% or more about three times a year

so you have to keep things perspective. granted, there is near term uncertainty. z >> what would you tell a long-term investor hang in there and see what happens? is this a reason to take some money off or some type of strategies that are less correlated but you'll have ongoing carousels of concerns and if you automatically sell based on every headline, it's a losing strategy and this period to me, very similar to 2016. we have the worst start to a year in history, big ramp up, concern about china's growth and the then the market had the big

consolidation and brexit, 5% correction and so i think our underlying strategy at this point has not changed and we're not advising to be aggressive and take money off the table here after the short step back. >> all right, advisers investors to hold tight. keith warner from suntrust, thank you. meanwhile, jeff bezos is hosting an event on space this afternoon in washington, d.c morgan brennan is live with more morgan >> hey, john, that's right i want to show you a tweet this is a tweet that has no words, just a picture and date, today. this is from the account of jeff bezos, blue origin this is a ship in dorrance, attempting to make the first land crossing over the arctic 17 centuries ago. but it's also a moon of the

shackleton crater, which could make a potential lunar outposts because there are large deposits of water there and also major applications in terms of industrial and space explorations here's what we know, jeff bezos is expected to be here in d.c. behind the doors in an invite-only event with blue origin later today we will be inside. blue origin currently has a number of projects under way that could come up new shepherd, sub orbital reusable rocket to carry paying passengers past the edge of space. that's conducted its 11th test flight last week and plans to start flying humans later this year it's also selling rocket engines to future competitors like united launch alliance, and this developing new glenn that is powerful under development to carry payloads into orbit as

soon as 2021 and there are pictures of new glenn on the wall behind me on these pillars. the company is being very tight-lipped in terms of what to expect later today so it really is anyone's guess on what bezos has planned but a number of industry experts i have spoken to do expect the moon to be a key focus of this event today, especially since the trump administration now wants american boots back on the lunar surface within the next five years, which is very ambitious, to say the least, very ambitious deadline that is going to require public/private partnerships with commercial companies like potentially blue origin guys, what we know is bezos is keen on going back to the moon he in the past said it's not enough to go there but this time stay and one of the other things that will be in focus here today the lunar landing blue origin has been believed to have been working on the past couple years

which is actually named blue moon back to you. >> morgan, keep us posted, thank you. morgan brennan in washington getting awe check on the maj averages right now, all sectors in the red the nasdaq down 1.3% the tariff clock is ticking as the chinese premier lu arrives in washington. oh, sir. that was my grandma's. don't worry, ma'am. all of your stuff is in ok hands. just ok? they don't give two and a half stars to just anybody. here you go. what's this? it's your piano. hold this for a sec. we don't have a piano. no.. but the neighbors do. just ok is not ok. especially when it comes to your network.

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key portfolio events. all in one place. because when it's decision time... you need decision tech. only from fidelity. front and center the market is seeing a broad sell-off, although i will note we're off the lows, down 363, we are down 400 moments ago technology getting hit the hardest. information technology, chip stocks, china exposed all in the crosshairs. >> meantime, significant news in

the ride-hailing space with uber's ipo tomorrow. the vision mobile-i was bought for $15 billion and i spoke to the ceo about that news and what it means for the competition take a listen. >> for the past six months i have been doing a very, very big deep study on the economics of what is available as a service, what is the game-changing element going from a human driven ride hailing service, which is today's ride-hailing service, to a rubber taxi service, where the driver today is about 80% of the economics. once you remove the driver and replace it, the cost of the car and technology, and can you have cost of technology of a few tens of thousands of dollars, and still create a gram-changing effect game-changing in terms of the discount but you can provide on current ride-hailing business 40% to 50% discount on the

existing ride-hailing service and still make a viable business, viable in terms of high profitability and this is really game-changing. >> intel piloting this in israel in partnership with volkswagen potential uber and lyft investors can add this to the risk intel down 5% right now due to revenue adjustments, adjustments in expectations for revenue the company announced a few hours ago. >> kind of diluting what would otherwise be promising news with investors waiting to see what they would do with that acquisition and self-driving cars. >> yes and you have an exciting close for the markets coming up. we will continue all day on cnbc to attract a sell-off off lows and uber's pricing after the bell today. >> we've got uber's pricing, always volatile in the final minutes of the trade we will see whether the lows hold that's sort of been the key.

yesterday we erase all of the gains. that was seen as a bearish sign. we saw follow-through today with the sell-off deep anticipating through the morning, with hours to go before the next tariff headline can hit as chinese premier lu does arrive in washington it's going to be wow, a wild 24 hours. >> that will do it for us. let's toss it to the half. john, thanks, i'm scott wapner is the market set for a correction no matter what the outlook on trade and werethis too expensive to begin with the legends are here to weigh in it's 12:00 noon. this is "the halftime report." what a great time for a class reunion. ga belly and cooperman, two of columbia business schools successful investors, both class of 1967, are with us today live and exclusively. we're talking tr