1.1 trillion dollars in market cap gone. that's how much has been wiped out of the market since president trump turned up the heat on the trade war with china. we'll run you through more of the staggering stats around the sell-offed straight ahead. the pregds setting a new timeline for china trade talks we will go live to beijing the market turmoil driving investors back into bitcoin, the crypto that just continues to go higher this morning.

what's app has been targeted by spy wear, and -- another weed killer cancer case all these big stories ahead on this tuesday, may 14th, as worldwide exchange begins right now. s&p and nasdaq higher as well. a far cry from what we wiped out yesterday. again, we were up triple digits on the dow futures when we came in this morning. this number has come down by half that trend continued throughout the day. of course, the dow losing 617 points on monday.

a rate cut is it now almost a certainty according to how it's being priced into the market there are some concerns bond yields could rise if china begins to sell our treasuries to punish trump the question, of course, is if they did that, where would they put their money if not in u.s. bonds?

the european markets are holding up look at this we are seeing every major european market gain not a lot. not making too much of it, but up 6.5 as we have been watching closely here on worldwide exchange, the german ten-year bond, the bund, still has a negative yield. the orange line is our china

trade index. u.s. stocks related to the china trade. we don't need to tell you bhaets happened there way down the white line this is bitcoin. bitcoin continues to go up as chinese-related stocks continue to go down the idea is simple buyers are hedging the trade war by buying something bitcoin seeing as immune to any trade fight. there is your setup. now to the news. president trump giving an updated timeline on those china trade talks saying, "we'll know in three to four weeks in f they're successful." he talked tough on china last night saying that if americans want to avoid tariffs just by products that are not made in china. this then the anti-american

rhetoric has been ridesing i want to show you a graphic that has been going around social media that was done by the people's daily, which is a communist party paper. it's entitled this is china's attitude towards the trade war the translation is negotiate, we can. fight, bring it on, bully us, you wish after 5,000 years of trials and tribulations, what kind of battalions have the chinese people not been through? le state media has been whipping up the nationalism likely because it wants to prepare the public for a long hard fight against the united states and also to try to placate some of the critics here to tell them that china is prepared all of this comes as the two sides have been escalating the tariff tiff, the ustr that

opened its comment period on tariffs of $300 billion of goods. china unveiled its tear ifrs that you know that now pretty much means that alof the goods have extra tariffs on them china is prepared for a comprehensive response that's what they were saying today. this comes also after the foreign ministry reiterated this idea kwsh. >> all you want to do is run money and make money and preserve capital for your

clients, but you have this trade war sort of hanging over everything. that's lot to throw at you, but let's start with the trade war first of all, you know, china needs us more than we need them. all these different countries, and they're all itching to do so china can't replace the u.s. we can replates them they wrongly interpreted trump's discussion about the economy and the fed needing to lower rates as a sign of weakness.

by doing that they were emboldening and thought they could come in and just renege on what the term they had as far as changing their laws on intellectual property. >> you are correct listen, we've all got stuff that's madein cambodia that used to be made in china a couple of years ago, but that could take years and cost u.s. companies a lot of money as they reset their supply chain, which means that could go directly to earnings not even with standing the higher tariffs that may be coming doesn't that mean we need to rachet down earnings expectations and the market multiples must come down and stock prices must come down? the last number that came out on

gdp was more than 50 basis points surprise to the up side i think there's plenty of room to work here, and the way i look at the market yesterday is what started out as bad news turned out to a trade unwind, much like the end of the year in 2018. everything is on sale. it's a great time to go out shopping in the market, and buy a bunch of stocks that shouldn't have gone down particularly in different sectors. >> why do you say they shouldn't have gone down the market is its own master >> well, that's true look at regional or community bairngs, and they have no exposure to china. certainly directly and very difficult indirectly you know, they were down the same amount as some of the big s&p 500 companies or citi group that's got exposure worldwide.

awe these people buying low vol ads in december. do you worry they've been put back on and this market is susceptible to a december-like quick swoon? >> absolutely. i think that's what started to happen yesterday, and it could continue to happen in the next few days as this turns into a technical market versus a fundamental market, that creates great buying opportunities >> dori wiley, commerce street capital live from dallas, we appreciate it. thank you very much. >> thank you.

is it covered that -- by exploiting a flaw in the messaging apps voice call feature. this could be installed even if people did not answer the phone and then the calls would often disappear from the phobe's log financial times reporting that the spy wear was developed by israeli cyber security company nso group. its pegasus software can turn on a phone ais's cam are and microphone, read emails and texts and also collect location data it did punish eye patch. it did urge its users worldwide

to update their app as a precaution nso tells the ft that it's investigating the what's app ens dent let's take a look at shares in premarket trading, and it loose like facebook is relatively flat it looks up .6%. brian, back to you >> see you in a bit. thank you very much. >> well, another big loss for bayer in the courts. a california jury ordered the company to pay more than $2 billion to a couple who says they were diagnosed with cancer after using the weed killer roundup. the jury said the company did not properly warn consumers of its cancer risk. kbir he down a little bit. 2.5% it's seeing that the number may ultimately come down all right. so much more to do on a busy tuesday. up next, retail stocks getting

hammered more than anyone as trade sengss accelerate, but what retailers are specifically exposed if the tariffed continue to rise? you're going to fine out ahead speaking of retail, wal-mart just upped the antti in the delivery wars against amazon courtney reagan is here with another shot across the bow. that company up in seattle dow futures up 70, and we're back after this.

zbriefrmt welcome back and good morning. we're up 69 on the dow, but that's a long way from yesterday's 617 point drop the nasdaq on a percentage basis falling more than the dow. tech stocks simply seen as more exposed not only because of expoisure to china, but higher multiples of the marke well. watch the nasdaq futures they're up again these are very, very slight gands. in the asian markets the hang seng began trading it was closed yesterday. it lost 1.5% actually, the declines in asia, with shanghai down .7% maybe not as much as you might think. all right. new this morning, amazon, you are on the clock because wal-mart just upped the ante in the delivery wars. courtney reagan is here. courtney, what is wal-mart doing now? >> this is a big one you know, loss than a month after amazon told investors it's spending $800 million just this quarter to try to get to one-day shipping for prime members, and wal-mart gets there first.

that is more than the 100,000 items a typical wal-mart store sells. now, laurie says one-day delivery has been part of the plan all along, sothere hasn't been and won't be a step change when it comes to costs to execute the faster shipping. laurie actually explained it's less expensive for wal-mart to ship one day rather than two day.

how is this possible most of the orders will come from six main campuses each of which are located close enough to the end consumers to make one-day ground shipping feasible the big question is now will one day shipping get shoppers to buy more will wal-mart attract new shoppers as a result, and ultimately, brian, will this hurt amazon? >> we've already got the amazon ten million square foot facilities off every interstate. i guess we'll have ball mart's right next to them in a way. 75% of the country by the end of 2019 >> one-day shipping? >> yeah. one-day shipping on these 150,000 to 220,000 items to start they've really -- >> you're not going to be some weirdo item. it has to be something that's common commonly >> they've loongd at date and and what skurmds buy and in what areas to figure out what products need to be close as possible to be able to execute

that, but they're hoping that over time in the more data they have they'll be able to get you more, and maybe you can get those weird items. so we always frame it, it's amazon or wal-mart can everybody win here >> no, but those two can >> that's what i meant it's like those two and everyone else suffers >> everyone else suffers don't you just wonder now did amazon know this was coming and that's why they preemptively announced theirs it really makes me think that they -- >> what did ben franklin say two men can keep a secret if two are dead >> it's interesting because, you know, wal-mart has been encroaching on sam zblon here

regularly. last time i was talking to you, i said, you know, amazon had peaked at 35 cents out of every dollar of new sales. now they're down to 14 wal-mart is up from eight to ten over the same time period. they're getting closer and closer together. how much of those new dollars of sales they're getting. things like this keep wal-mart in the game. and amazon, it costs them a lot to do it wal-mart, it will not cost a lot to do this because they're using the jet molgts model as long as they can box it up the way courtney was talking about, and get it out to the customer, they're shipping costs will be low.

>> it's not jet that's enabling market -- it's the way wal-mart built out their lodge ikss and distribution center largely with his influence that has enabled this to be a possibility >> a couple billion bucks.

today that number is closer to 15% where, that took place in a five-year period there are other things you can do for instance, if you are manufacturing product and you are selling some in china, you want to keep that in china anyway just turn it around and send it to china and bring the stuff out of vietnam to here blsh the

retailers most ekts posed on an earnings per share basis if and when the tariffs go from 10% to 25%, but they haven't kicked in yet. it will take a couple of weeks let's look at the names. costco, 9% hit to eps if they ruz. what would you say to those companies? >> first you have to say you have to get the street prepared for what's going to happen, and then you move as fast as possible remember this. the real problem is not what we just saw for my kind of retailing, the real problem will be if we put 25% on the next 325 billion dollars worth of product that comes into the states. if that happens, essentially we wipe out growth in retail earnings for a year. that's unless we can mitigate it mitigation will start taking place really fast now that

people think it's a possibility. >> and you are saying that's the problem. that hits all the apparel, all the shoes, the sort of main part of the soft line retail gootsds. >> the people i care most about. that hasn't been hurt at all so far with the first 200, and it will be hurt very little with the next 15% on the first 200. if it goes across to the 325 billion that's been touched yet, all of retail has to start reorienting itself out of china or start selling stuff in china they're making in china selling it other places besides the states, and bring in the product that they're making other places outside of china here. >> they've got to have something to put in all those distribution centers for the one-day shipping, or that shipping may not last courtney, great conversation jan, thank you very much investors may have a glimmer of hope this morning. stick around

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to a statement from the carter center, he was treated at phoebe sumpter medical center in georgia. the surgeon who treated the former president said the operation was successful president carter said his main concern is that turkey sees an e h- season ends this week, and heas not reached his limit more after the break ♪ there goes our first big order. ♪ 44, 45, 46... how many of these did they order? ooh, that's hot. ♪

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>> 1.1 trillion dollars in investor value gone in a day as a december-like swoon set to happen again bitcoin busting out, but why we've got the one chart that may explain it is a perfect storm brewing in energy why gas pump prices may be primed to pop. we'll explain as worldwide exchange rolls on right now. >> i am brian sullivan it's a busy day. let's get right to it.

many of you would no doubt wake up and wonder if yesterday's market route is going to continue well, the futures are indicating that it won't. they're up 88 points right now, but. the futures were down, what, 200 yesterday. the market fell 617 points futures had the power to change, but we are up right now on the s&p, dow, and the nasdaq five dow components are now down more than 20% from the recent highs, including apple bond yields are not moving that much what about the rest of the asian markets? let's get a check there because

the hong kong hang seng was closed yesterday it is back open for trading today, and it didn't fall that much down 1.5%. the shanghai composite again, it fell but only about .7%. the idea being there's a lot of talk perhaps that the chinese government with their stimulus plan has stepped in and started buying stocks. in the early trade in europe, we don't see the fear we had here yesterday moving across. look at that green on the screen. the french market, wow, up nearly 1%. well, outside of the stock market, here's a global college on commodities and currencies. oil down just a bit. the euro dollar at 112, but i want you to focus on bitcoin bitcoin is up another 4% right now to 8121. the markets have been hit hard

since trade tensions tartd to heat back up the s&p losing, look that the, one point -- i have to keep walking backwards. 1.1 trillion in market cap since the may 5th tweet threatening a new round of tariffs that sparked the big sell-off including yesterday's slide. if you weren't paying specific attention to the markets, listen to some of the dire stats from yesterday's route. only 48 stocks finished higher 45 stocks in the s&p 500 fell more than 5% the average return of all the members in that index was a loss of 2.5%. the dow is now 6% below its october 3rd highs. talk about a rout. there's one on a skroen. a krs nbc credibilitior. right now, kenny, we are seeing futures. they are holding up just a bit

the markets were ugly yesterday. i think that a lot of what he said the market was prepared for. came out on friday we knew that they were going to retaliate. yet, the market managed to rally on friday. then on sunday when they coup out with the hlds and then they start hitting you with the treasuries and boeing and the industrials and energy and the pharmas and it was all very, very negative.

you read those headlines, those words, and it tends to just feed on themselves. >> i'm starting to think that the stock market is like a bad episode of the bachlorette laura martin over here we'll get to you in a second here's the thing, they fight and always get back together i think the market now -- they worry about the fact that trump and xi may not be getting back together maybe this trade fight goes on a lot longer than we thought >> it will go on until the presidential election in 2020. another 18 months away that's going to be a long 18 months if that's the case. >> everybody seems to think, oh, we have to make a deal because this is mutually assured destruction, so, of course, they're going to make a deal sometimes the cars don't swerve. sometimes the game of chicken doesn't work out, and both people get hurt. >> you are right

i guess we're going to see if that's where it's going. if you look at kudlow and you look at steve mnucin and lighthizer we're telling us we're close, close, close. all of a sudden it falls apart >> because the last 5% of any negotiation is the hardest >> i think it's gamesmanship that's what i think. in the meantime, until you get clarity, then the market is going to be driven by the headlines. then it's going to be driven by technicals we're very close to a trend line support. if we hit that, then it will send another wave of sell orders to the -- 2775 on the s&p. that's the intermediate. the 200 is only at 2752. just 25 points below that. we could test 2775 and very quicklylet's talk about what is

happening in tech and media with laura martin of need ham who i think really appreciated my bachlorette reference. >> there is no such thing as a bad bachlorette episode, so i have no idea what season you're watching >> the market is starting to feel like that zroo we're going to continue to

have china issues, and when that hurts both the demand 20% of apple sales is in china, and it's the sentiment shift on apple stock price. then we have this assembly issue, and i agree with your earlier guests that they're probably going to diversify away from china >> that may be harder for apple than anybody else. what, 100 million i phones a million people working at fox con. you can't just move that.

snoo i think if the government -- of course, the government can just it would hurt earnings per share and apple sales also in europe and probably not in the u.s. so much where. >> have you to bring down estimates on apple is it too early? >> i think it's too early. let's see. you know, trump is threatening another in 60 days another 25%.

the fangs where globally scaled distribution networks. now, facebook doesn't actually work in china. they've allowed google to. not allowed in china they don't have china revenue expoedsure if the global economy slows, advertising slows. >> maybe there are companies right now that are glad that they are blocked in china. >> yeah. >> laura martin. great stuff, as always >> my pleasure >> early morning analyst call to tell you about coca-cola, upgraded to overweight from equal weight they have a $55 price target stocks at 48.51. about $6.30. it has a stronger growth outlook

than many of its peers citing pricing power and volume growth among other factors. straight ahead, fueling the trade war. president trump visiting a major liquified natural gas facility in louisiana all of china slaps new tariffs on u.s. natural gas. we'll break down what's at stake for the entire energy group ahead. and are we in for are more pain at the gas pump or will they level off in time for the start to summer? gas prices could be bigger than tariffs. we'll tell you why stick around ♪ every day, visionaries are creating the future. ♪ so, every day, we put our latest technology and unrivaled network to work. ♪ the united states postal service makes more e-commerce deliveries to homes than anyone else in the country. ♪ because the future only happens with people who really know how to deliver it.

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welcome back 5:44 here on the east coast. stocks fights now up triple digits dow components up 112 as it indicated open the nasdaq up 49 as well not looking at least at the moment like it will continue today. always watching the price of oil especially given the other big macrostory out there.

skmooin raised tariffs from 10% to 25% brian, you have been down there at the ports you know how important china's market is to u.s. producers. over the past three years china has accounted for about 10% of l & g exports. demand there is growing faster than anywhere else, but the trade war is traying some of the steam out of the markets.

choin's retaliatory tariffs will take effect in june, but the consequences could be felt long after that brian, you know the biggest threat here is that this derails the second wave of investment to increase that export capacity. back to you. >> thank you >> a name we have talked about often on this networkser they are in part of the negotiations. perhaps no company out there has more on the line with regards to a long-term energy relationship

than they do where do they stand in these talks? necessity worked hard to bolster their relationship with government officials, and they believe their current contract right now for 1.2 million tons of l & g that's being exported annually to china, that is secure what happens in the future does this $18 billion deal go through? we'll have to wait and see thank you very much. look for the headlines from that trump visit today. thank you. well, there is some good news in energy gasoline prices, they have finally started to level off after rising for months. triple-a says the national average is $2.86 think of this.

if the iran tensions heat up and oil continues to rise rrks the amount of gasoline money that we spend in this country would be far larger than the impact of the tariffs. the average american uses about 50 gallons of gasoline a month a two-car family 100. you raise $1 on the price of gas. that's 1,200 additional dollars that an american family will have to spend your morning rbi this one will make you realize why some people may be happy about trump's trade war with china. as we head out, more staggering stats following yesterday's big sell-off here are the worst performing s&p stocks this quarter. baker hughes, arista networks and mylan down 20% just this quarter. we're back after this.

>> looks look the market rout is not going to continue today. it's still early dow futures, they're up 95 points i know we lost 617 yesterday, but the markets are not in the red right now. all right. i want to talk about bitcoin because you know what has been solidly in the green bitcoin. bitcoin stock, look at this. 110% gain in just a couple of months bitcoin at 8,100 you may be thinking why? there's a theory bitcoin may be being used as a hedge against all the trump trade stuff. a lot of demand comes from asia. buyers are coming in as a hedge against the trade war because it's something that is unaffected by trade and by central banks.

one theory got to watch it china trade stocks down. bitcoin up let's now bring in michael he is managing director of vios advisors michael, don't worry i'm not going to ask you about business coin, but i am going to ask you about the stock market what advice do you give to your clients after yesterday's 617 point drop who probably still have memories of decs market pain. the ermgz have been good 75% of companies have greet

beatsen their stinlts. now we are higher tariffed with don't we have to rachet down earnings estimates the longer this trade fight goes on? >> absolutely. we see three scenarios in this trade fooel fight. the first one, quick resolution. it happens over the next month the second one, which is probably the most likely is this goes on for a little while longer there is some pain the third snae york i don't think that's happening i think you are seeing each person dig in their heels saying i'm going to get the better deal, and i'm going to tell people i'm getting the better deal so i have to push for this. >> i feel like the biggest risk here may not actually be trade it may be sentiment. to your point it was like a dog. the dog bites you in december. the byte dog bit now for a couple of months the dog is being nice, but you are never going to look at the dog the same way again we have this couldive day like yesterday. i just wonder if that december

sentiment that fear gauge it's going to creep back into the markets. >> it's crept back in the markets. it was a purge sell anything market regardless of earnings and regardless of what companies are doing. >> a little more cash maybe? >> you could trn to cash or something that is in the fixed income arena, where you pull it off the table, take it out of the s&p and let it sit on the sidelines for a moment >> take it easy december not that long ago, by the way. dog bites man.

michael, thank you very much see you soon >> thank you, brian. time for your morning rbi. the most random and hopefully interesting things you'll hear all day, and do you wonder why president trump seems so willing to stick to his guns in the trade fight with china even if it means paying for the stock market this may be why. nearly all of the world's fake or pirated goods come from china. that's not opinion or fake news. according to deutsche bank in 2016 the last year for which we have full data 80% of all patent infringing goods searsed by customs officials originated in china. 80%. electronics, jewelry, even medical equipment. eight out of every ten fake items on the planet likely came from a factory in china. it's a lot of money being lost by american companies.

stee you tomorrow. have a great day

>> trade wear turmoil. 1.1 trillion dollars in market cap wiped out since president trump turned up the heat on a trade war with china now president trump says we'll know if we're successful in three or four weeks. dow still above 25,000 still above 23,300, i think last i looked we'll have a live report from beijing straight ahead.

i we're live at the nasdaq market site. i'm andrew ross sorkin along with joe kernan and melissa lee. becky quick off today. our guest host today is shark tank's kevin o'liarier, mr. wonderful. waking us all up this morning. good morning >> great to be sheer >> you've added an accessory, we see.