i think cash is the best place to be. >> from the top of the show. farmer jim >> i don't want to buy anything. bristol-myers seems safe >> end of february i bought colpart, 69, going high per. >> dow is down 425 "the exchange" begins right now. >> thank you, scott. hi, everybody. here's what's ahead. wall street is hunkering down for a much longer than expected trade war. will the just maintain its harder line with china new session lows the u.s. also talking tough with iran secretary of state pompeo telling cnbc he's confident there won't be an oil shot despite the rising tensions in the middle east. crude prices dropping sharply. we'll see if gasoline prices are next tesla's rough week, and "the game of thrones" gone from hbo

dom chu has the play-by-play >> the last 10 or 20 seconds the lows of the session. the dow off by 1.75%, similar move in the s&p 500, its nasdaq off by 162 points, a 2% decline there. one of the main parts of the market we are keeping a close eye on is the transportation industry iyt is off 2%. on a week-to-date basis it's off 3%, again, week to date and it's down 6% on a month to date basis so this could be the first three-week losing streak of the year for transportation stocks and the macro picture, some traileders like to look at copper prices as an indicator of the macro global economy

copper and oil prices that come out of the complex want to follow in this down day. el where come to "the exchange." i'm kelly evans. the u.s. flash manufacturing pmi fell to nearly a ten-year low but a number of americans filing new claims for unemployment benefits held up well at 211,000. housing home sales down 7% last week coming from a multiyear high revised in march. let's drill down more on the trade turmoil and the markets which are down nearly 450 points bob pisani at the nyse >> hello, kelly. reality is strarting to set in there is no said date for talks to begin there's hope president trump and president xi will meet at the

g20 in june but the underlings have not set up any groundwork and there's nothing on the books. if you're bullish on the market, you have to be bullish on global growth but to be bullish on global growth you have to believe trade is getting better. the damage is piling up. the trade relate the names, all down double digits so far this month including the tech guys, intel, apple, industrial material like dupont, 3m, caterpillar as well. nomura a 65% probability if tariffs are put on the additional $300 billion in imports at a 25% rate. wouldn't be imposed at the g20 meeting in june, it would be put on afterwards and what a lot of people are starting to try to >>ob, when you look at the markets, do you see the pressure mostly in the tech sector today, when there's all the headlines about this being a tech war with china? do you see it in manufacturing after the market number this

morning or is it a little bit everywhere >> tech and industrials are the two sectors hit most because they have the biggest exposure forget about hiding out in defensive names. if you go on for months and months on end into the end of 2019 with tariffs on another $300 billion, procter & gamble, doesn't matter, your defensive names, all the global names will come down because global earnings will come down. your numbers have to come down at some point. >> bob, thanks very much bob pisani the bond market buckling in for the trade battle the yields on the 10 and 30-year fresh requires hitting their lowest level at the couple of years. rick santelli, bob said the strong dollar isn't helping either >> the strong dollar had a u-turn today february 2018 last time two-year note levels were down at this level, nine basis points, as

kelly said, depending on what part of the curve, we're value soft the long end is key in many traders and investors eyes, it's the last holdout in terms of important levels it was holding, 237 for 10s. the two-day chart we traded down think about this boone yields are at minus 12, minus 19 from july 2016 as their most negative low yield close in history and only a short amount, seven basis points away. so ten bund spread hovering around 2.43. the rest of the globe is slowing and going to impact us but that spread tells us something. the u.s. is doing better than most and many of their policies are pressuring our rates down. finally the dollar index earlier today look at this two-day chart.

it shot up to fresh 24-month highs, but boy, did it do a u-turn as stocks started to get nasty and so did treasuries. why? maybe because it could bring the fed back in. he's paying more attention to the markets. he should be paying attention to the long end kelly, back to you >> i'm sure he's paying attention today. thanks very much, rick santelli. let's talk about what's happening with china today secretary of state mooiike pompo was on "squawk" and represents a real risk to u.s. security >> you talked about trade cross currents hitting the markets today. we've also got trade cross currents here at the white house today and you mentioned secretary of state pompeo. he laid out the president's case this morning on huawei and specifically why it is this president feels he's the the that needs to tackle this problem now. here's what he said. >> presidents from both parties

ignored the challenges presented to american workers to american technology and to american national security that china presents he is pushing back in every element the decision that was made huawei had an enormous national security risk, tied not only to the chinese community party and that connectivity the existence of the connections >> reporter: it's not just tech. it's ag. they will walk through what the program will be to reimburse farmers hurt by the trade war. here are some of the details a $16 billion plan overall, usda says there will be $100 million of that for what they call trade promotion assistance the funding comes from an existing program called ccc, no from tariff revenues but officials on the conference call earlier insisted that because

tariff revenue goes into the general treasury, therefore you can say that the tariff revenue is paying these farmers but the administration is laying out a transfer of wealth here going from importers who are paying these tariffs into the treasury and from the treasury into these payment programs for farmers hurt by the trade war. so you're seeing that impact hitting the importers and being redistributed here to the farmers ultimately politically the white house hopes it is going to stem some of the bleeding for them in terms of farmers who feel really they're on the sharp end of the stick here in terms of the trade war. >> sure, eamon, thanks very much, eamon javers at the white house. the u.s. and china are leaning into hard line stances against one another and that has wall street hunkering down for what it feels could be a prolonged trade war. the major average is down over 1.5% and the nasdaq nearly 2%. same for the small cap russells. more than half of the s&p 500 is

in correction territory down 10% from recent highs. joining me to talk more is jason trennard and joe lavornga, chief economist and cnbc contributor the fascinating thing about the trading action today to some extent this week is that there's been an absence of real noise. every headline is about the 25-year tech war with china. >> the president doesn't have a lot of incentive to deal the economic numbers are quite good there's a sense that perhaps the economy is peaking too early from a political point of view, so there's incentive to wait there's more bipartisanship on trade i think than people had thought. last week, steve cannon and tom friedman bhaskcally singing from the same himm hymnal and the mas themselves are down, it's not

good to see it go this way but you still have room to play with i think people are coming to the conclusion the president's not going to fold any time soon. doesn't look like china will fo fold >> an interesting line that china believed incorrectly tim cook was the same thing as our chief trade negotiator that was a big miscalculation. >> since china joined the wto, large companies largely ran the table in terms of our trading relationship with china and i think donald trump, whatever you think of him, is representing a different constituency he's more,'s knnot a corporatis, he's a populist. s' a subtle but meaningful change >> the early read on manufacturing and services fell to contractioner it for for the u.s.

>> both. i think we're overly concerned but we can't prove it, because it is too soon to tell a few gdp numbers, government spending and inventories, and large inventory correction is likely this quarter and that's why the market and most of the manufacturing data are going to be soft. so that doesn't surprise me. china certainly, this is going to hurt sentiment and risk taking i come back to the point that the fed has raised rates a lot in this business cycle, more than any of the central bank to me, it's too much growth is slowing against the backdrop of weak inflation, and that to me is still the bigger

concern in my mind weakness in housing and autos, and that's why the fed has to take back some of this tightening and that's why i continue to look early on for rate cuts. >> i see shades of disagreement on the economy the middle is largely fine for right now. i guess my question for you is how do investors reposition and are they doing that right now, if technology is now at the heart of this trade war, does that mean the most loved sector, the best performing and until today the best performer of the year is everyone going to pile out and look for other places to go >> unfortunately, probably, for the time being i think what's so frustrating for a lot of our clients is that before this trade squabble or war really boiled over two weeks ago, the cyclicals were doing well technology and industrials, financials are starting to catch a bit. now you're going back to the tina market. it's really people investing in stocks largely by default

because of the absence of other good alternatives and that gives bid to defensive sectors like utilities, like consumer staples. >> real estate is the best performing sector of the year. >> it's difficult. those are not cheap sectors, especially given the idea that global growth might be slowing >> so you wouldn't be in those areas? >> i would be for the time being but i think what's frustrating and this is what's so hard for i think professional investors, for those who have long-term time horizons it makes sense to be in cyclicals because like joe, i believe there will be policy eactions. >> like rate cuts. >> like rate cuts. >> you do? >> i think if you look -- i don't disagree with joe as far as the economy is concerned. i do agree with him very much on inflation. the real fed funds rate has risen this year because inflation is lower >> ironically the fed is saying the tariffs will push inflation back up to our comfort zone. wait a minute. >> that's not the way you're

supposed to get there. >> joe, final word to you. what happens if the tariffs push inflation up, quote/unquote, but it's temporary and kind of for the wrong reasons? do you think a rate cut and do markets think a rate cut is coming >> the markets are pricing a rate cut by the way, i agree with jason i don't think we've seen the highs for the cycle in equities because of the fed response and the fact that recession is still far away, but the fed my guess is going to treat an increase in tariffs as actually more hurting on the demand side, hurting business confidence and hurting consumers than it will on the price front, because while there will be possibly an adjustment in price, it's a one-off and import prices are still negative here on your, in part because of the strong dollar you talked about earlier. you get the tariffs, it goes lower. you get the fed easing and that helps to stabilize equities and eventually make new highs. >> guice, thank you both appreciate it on a day like today. jason trenner and joe lavorgna,

the dow 15 points off the lows we saw 15 minutes ago. coming up, secretary of state mike pompeo says the oil market is well supplied despite tensions with iran this as oil takes a nose dive today. so where do we go from here? plus, the latest on boeing, as the faa meets with regulators from around the world. and facebook curves incentive to sell political ads. one-millionth order. millionth order. ♪ there goes our first big order. ♪ 44, 45, 46... how many of these did they order? ooh, that's hot. ♪ you know, we could sell these. nah. ♪ we don't bake. ♪ opportunity.

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welcome back to "the exchange." the energy market is fighting with wti crude, brent and the energy etf all on pace for their worst day of the year. this after secretary of state mike pompeo on "squawk box" this morning said the trump administration is taking steps to prevent prices from spiking >> we've had some luck in disrupting some of the tactical things that were in front of us, i think it's fair to say but ma make sure we have the right resources in play. your point, i remember when we began the maximum pressure campaign, there was talk probably on this show, oil going to 150 your listeners know when may 2nd came, we withdrew and oil is

below where it was when we designated them a terrorist organization we're confident we've done the hard work to make sure the market is well supplied and i hope we can continue to maintain that >> we bring in cnn international correspondent hadley gamble and brian sullivan brian, u.s. benchmark oil fly below 60 bucks it was in freefall midday. >> there's too much oil in the world. opec demand is over 1 million barrels less a day than last year and production non-opec production, i.e., us and russia is up. you're up 1.6 million barrels a day year over year demand estimates coming down, 2.6 million barrels of additional oil than they see in demand oil is a perfect commodity, if there's too much of something, that additional barrel has zero dollars of value >> in other words, hadley, we've offset the loss of the iranian barrels which is what the secretary of state was talking

about. there's a couple different ways this could hit the oil price those actual barrels are gone from the market. any supply disruptions in the strait of hormuz is always the concern but he's right prices went up earlier this year but now here we go >> they're not responding to the geopolitical risk. this is interesting because this is the same tone he took with me a week or so ago when i sat down with him, very much emphasizing we haven't disturbed the oil market, haven't done anything to the price voters have to worry about. mike pompeo, 2024, there's that. at the end of the day, remember the iranian crude story. essentially iranian sources are saying there's no way they'll be able to take to us zero. 500,000 barrels per day is the magic number for us and no way they'll get us off the table is that the situation where we see that oil come through iraq what is the narrative there? maybe iraq, maybe elsewhere but there's no way they'll get to us zero >> i've been tracking ships, this he track off their a.i.r.,

the gps system there are iranian oil tankers, some meet up with other ships in the middle of the ocean and off-load the oil they don't ever go to port this is an interesting story >> staying under the radar >> correct think about the geopolitical power that our shale boom has not only given us. >> as a weapon >> 8.4 million barrels a day five years ago last may. now it's 12.2 million. add another 4 million barrels that's geopolitical power, we can be more aggressive and not worry about $6 a gallon gas. >> the whole thing was almost an accident right? the shale revolution, the technology behind that, the timing worked out is china the customer of iranian's crude. do we know if it's either way? they're going to get closer, not just the iranians but uae.

>> the biggest buyer of iranian oil is india the biggest refinery in the world is reliant, 1.4 million barrels a day. our biggest refinery is motiva at 650,000 this is a big refinery they are the big buyer of iranian crude. since the exemptions have been taken off we don't know who the buyers are there's not an official record but to have this point there will be buyers and what happens if you have to buy something on the black market where do prices go down >> aren't you worried about getting more and more in china's pocket one thing, which has become apparent to me over the last couple of weeks of reporting this story, which is that these are operating in a silo on negotiations diplomacy, supposed to be back channeling at all times, the iranians are talking to john kerry, he's the only one taking

their calls. basically the white house said, mr. trump has said again and again, pick up the phone, call us, we want to talk to you when you don't know the number, there's nobody to call what i can tell from speaking to the iranians and gulf are bes, at this point there's no one from the iranians they feel they can talk to us >> they can talk to us and -- >> well bottom line if it helps the u.s. drive at the gasoline pump it's not a bad side effect from all of this thank you. coming up, tesla is trying to break a six-day losing streak and break the cycle of making headlines. is there a catalyst to turn the name around? we'll dig into that. plus catch out this catchy tune ♪charts it has a lot to do with this very conversation on trade as we head to break, take a look at stocks that are dragging down, the dow, we were down 444 at the lows, down 418 right now. ibm and united technologies are

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qualcomm is a monopoly, calling its business model into question and big questions how exposed their earnings per share could be, qualcomm down 3.5% today spotify is sinking after a tech crunch reported the streaming music service has an unspecified number of users to reset passwords p, due to detected suspicious activity but didn't elaborate. spotify down 4.5%. deutsche bank shares fell to a new record low, as the bank held its annual meeting in frankfurt. the krrngsceo said he was readyo make cuts. a 1.5 cutback. now sue herrera for an update. >> white house press secretary sarah sanders says it's insane to think infrastructure talks can continue after house speaker pelosi accused president trump of a coverup >> it's very hard to have a meeting where you accuse the president of the united states of a crime, and then an hour later show up and act as if

nothing's happened the idea of that is insane i think to any normal person >> federal prosecutors charged a banker with trying to buy himself a role in the trump administration by making risky loans to former trump campaign chairman paul manafort steven calk was arrested in new york city on a financial institution bribery charge >> the tsa is preparing for the busiest travel season ever and it kicks off today more than 260 million passengers are expected to pass through security checkpoints at airports for memorial day weekend through labor day. that's about 10 million more passengers than last summer. so get there early and bring a lot of patience. that's the news update this hour kelly, back to you >> thanks very much, sue herr a herrera. here's what's ahead. >> ahead, chipotle downgraded on worries about its pork tesla's troubles continue. why streamers stopped streaming

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"squawk box" tomorrow. welcome back, everyone let's catch up on a few stories that should be on your radar it's rand-fire, brian sullivan, morgan brennan and dom chu what a day, holy cow with the markets. we're seeing damage anywhere shares of chipotle downgraded. concerns about rising pork crops. whole foods cut its outlook for sales because of the pork market the price is up 50% this year because of an african swine fever outbreak in china, estimated to have killed up to 200 million hogs there and on top of that you have the tariff issues >> well, i think people need to calm down a little bit i know chipotle got downgraded by morgan stanley in april and march so this is kind of the third downgrade. let answer not forget hog prices were higher in the early part of 2014 by 35% than they are now

and chipotle's stock rose into that rise so hog prices are up but they were higher five years ago and chipotle did just fine >> this is the other china effect on soybeans, too, in the u.s. and you've seen this have an effect on soy prices. less demand in china for feed for hogs, depresses prices and something also talked about in earnings last week >> one of the basic concepts in economics, that's substitute goods. the reason why it's important for chipotle, the analysts at bemo note they're more leveraged than other stocks towards the pork end of things, not necessarily the beef but you can expect beef prices to rise and chicken prices to rise because if pork prices rise, demand goes higher for beef and chicken. this is a great look at whether or not animal protein in general is going to start trending higher if that's going to affect all kinds of restaurants later on down the line. >> beyond meat, the pork

substitute >> there is no substitute for pork never say that again, please >> bri, i'm with you >> you don't like turkey bacon >> no. don't like turkey bacon. before brian leaves, let's talk about shares getting a bounce after elon musk sent an email saying the company is close to reaching its production target for the model 3, comes on a six-day losing streak. the stock is on its par its worst month since march 2018 investors are relieved although the stock is barely higher on the session, dom >> it was yesterday we were talking about "near term support" around 192 to 197 for this stock and it disappeared right overnight. the idea here is we talked about this idea there's a heavy amount of short interest in this company. the narrative so far has still been to the downside the path of least resistance here we don't know whether or not the production levels will matter in

the longer term but it is enough to provide some kind of a stop gap for right now but the trend is not good for tesla and hasn't been for a while >> couple things i bet you most tesla buyers watch cnbc, expensive car at the higher end will the stock slide alter the perception of buying a car >> i would have wondered the other way around is the remember sep perception of buying a car down? consumer reports, they've gone from, remember the model s >> it's a great car. >> it is >> be careful. let's not confuels the burrito for the hog. the car is a spectacular product. no one is knocking the car >> "consumer reports" was knocking the car the perception, so you take a firm like theirs which does not recommend any tesla. >> they pulled the rating. >> i wonder if that reflects a broader sense, morgan, that it doesn't have the lustre it had a

few years ago. >> i think it's a valid question and yes, capital crunch is a big issue for the company and the stock and i do also think that ca cache associated with the car say concern, concerns around autopilot and elon musk saying the future is robo taxis each automation >> audi and air etron are getting more televised commercial commercials. >> uber's price target ranges from 42 to 53, low to high tesla's is 150 on the low side with a $10 worst case for morgan stanley, to 530. to quote jim cramer, they know nothing. analyst community has a $400 gap in price target. how is that possible >> the etf shop famously put the

$4,000 price tag >> i loved that. i could have had made that for tv for once in my life, i backed off. >> pretty lofty. the margin of uncertainty is extremely high >> very fervent community around tesla stock, the long investors and short investors. >> "consumer reports" jake fisher on "power lunch" said the auto tester is comparable to a first-time driver who is nearsighted. facebook is no longer paying commissions to employees who sell political ads at the company looks to overhaul how it engages with campaigns the "wall street journal" saying senior leaders of facebook debated killing political ads all together after 2016 but zuckerberg decided to keep them. >> i can tell you one of the easiest ways to change behavior is change the way you compensate people for selling stuff from a sales capacity if you are looking to change behavior if you're not paying people to source leads and close

them for political ads -- >> the thing about the whole story, are political ads the problem? wasn't it fake news in general, used as a campaign weapon? in other words was political advertising on the site ever one site a sflproblem? >> vetting and who was paying for the ads and putting the ads up you had employees in the 2016 elections entrenched with the campaigns. that being said, i don't think a company like facebook can pull out of political advertising all together there's billions of dollars and the growth is incredible and you have competitors like google who aren't taking the same steps >> why is this hard? every political ad and tv at the end, blah, blah, blah, this ad was paid for by brian sullivan

why isn't every ad that goes anywhere vetted, approved by somebody just like in television so it's not too bad or lies. >> if that's not the standard -- >> you can't be some dude making an ad and throwing it up on facebook everything should be approved by a third party. too much at stake for ding dongs to make stuff up >> tv and print has gone through decades of evolution to get to that point >> they need the same rules as we've got in television. >> it might take just as long. i'll take the over on how long it takes for them to clean it up axios saying consumers more than 30% likely to cancel a subscription streaming service after the series they're watching ended 16% of hbo subscribers plan to cancel their subscription now that "game of thrones" is over

>> probably because the last season was so disappointing. i'm on the record saying that, i was disappointed. >> if it's over, why stick around >> exactly and here is the other thing. to compare streaming services to more traditional cable bundles, you're usually getting locked into a contract with the cable bundle you are not with streaming service. there is more flexibility. >> this is great for the consumer >> i don't think it's going to last but go ahead. >> the reason why, one is because this puts a lot more pressure on studios and outlets like hbo to keep producing that high-quality content i am a big "game of thrones" fan, i pay for the cable subscription because i like having that cable bundle but i am going to stick around for other shows that hbo might have in the pipeline including "west world" next year, hopefully they like me, but they got to start producing a lot more >> everything is going to go -- tv is not dead i know we work in tv so here is

the reality. look at youtube did, gone back to a free model with ads it's amazing how 50 50 years trying to figure it out in tv and everyone thinks they can rewrite the book, they'll find out nobody like my 15-year-old daughter has never seen an ad in her life >> that's going to start to change >> it's going to change. >> the channels of netflix are doing better once they are included on channel tv i subscribed to hulu for one summer to watch owl of "seinfeld" and that's it i've never subscribed since. a whole new level for singing a tune in china. check this out ♪ >> a propaganda song, the lyrics say trade war, trade war, not afraid of the outrageous challenge and call to beat the

enemy, quote, out of its wits. >> a flying fist with the flag seems so communist china >> that song was rewritten that is from the 1950s called tunnel war and about anti-japanese sentiment in china. that is reworked as a post-world war ii pop began da thing. it's scary what's going on but i don't know what leverage, how does china -- jim cramer i think is exactly right china is an important nation but be clear, the amount of exports we sell to china are a little less than the gdp of utah. the gdp of utah. >> but if you're starbucks, if you're apple, those are the two that haven't been hit yet. this song going viral what does that tell you about the attitude in china going toward american problems >> it's probably one of the biggest concerns for a company like apple, not necessarily the cost pressures from tariffs and

what that does to the supply chain, what it does to consumer confidence and the appetite to buy their products >> let alone starbucks, kfc. >> come on, hold on, dom starbucks is not people saying we hate america, let's stop buying starbucks it's the lucken coffee is 50% less than starbucks because who is backing them? how do they have the money to charge half the amount >> something that's an american brand if you're not warm and fulzy. >> let's be clear. i've been to china, not to confuse these. the chinese people and the chinese government we assume they like the government i don't think they do. >> you have a choice, starbucks who wants to make china practically its second home market or with lucken who has the implicit backing of the chinese government >> you go with the stag over the mermaid. >> i don't know what that means. >> they're logos >> thanks, guys. brian sullivan, morgan brennan and dominic chu. >> we'll talk about the hog now.

some of the biggest retailers in the country waited in earnings in the shadow of the trade war. who is surging, who is struggling and who has the most to loose the tech heavy nasdaq has been hit hard by trade concerns here are the stocks pulling the index lower, jd.com is off 5%. we're back in two. i don't want any trade minimums. yeah, i totally agree, they don't have any of those. i want to know what i'm paying upfront. yes, absolutely. do you just say yes to everything? hm. well i say no to kale. mm. yeah, they say if you blanch it it's better, but that seems like a lot of work. no hidden fees. no platform fees. no trade minimums. and yes, it's all at one low price. td ameritrade. ♪

welcome back i'm julia boorstin with headlines. mark zuckerberg responding to calls to break up facebook facebook hoetsing a call with reporters talking about some updated numbers. zuckerberg responding to a question noting seven to eight different services to communicate and on the advertising side less than 10% of the global ad market, 20% of the digital ad market, saying

that any arguments there was some dominant position might be a little stretched and no committee is calling for regulation so zuckerberg responding to calls to break up the company by noting they do not have a dominant position guys, back over to you >> you know you're dominant when you say no, we're not. julia, thanks very much. julia boorstin let's talk some best buy which posted better than expected results this morning on the back of strong appliance, wearables and tablet sales the shares sliding as much as 6% with the broader market on the trade fears. joining me is oppenheimer director of research brian nagel. welcome to you best buy was initially higher. what is the specific concern here >> well look, i think best buy got caught up in a bad tray day. you're right results hit the tape this morning at 7:00 a.m., the initial premarket trade stock was $71, $72, it was a very good report best buy discussed in the conference call tariffs and that happened just as the market was getting more concerned about the trade war and that's what happened to the stock.

>> the interesting thing here to quote the outgoing ceo, tariffs all go to 25% that result in price increases and felt by u.s. consumers more to minute miles the impact of this sounds not like it's profit pressure on best buy but it means higher prices so are people worried about the consumer reacting to that? >> i'm having this conversation with a lot of my retailers including best buy that there's a lot of pricing power here. so on any individual item, best buy and a company like a home depot or auto zone could easily pass that on to the consumer the concern in the market as i see it if all the retailers are doing this at the same time, that is going to put a lot of pressure on the consumer and potentially affect spending. i was talking to best buy and the cfo said that to me, too the worry that this could happen all at once. >> everyone loses a little of the wallet quickly, would you stick with the brands that have traditionally been winning in this environment or i know you

can't say this but what if people avoid the sector all together >> i think retail is a base sector and there's clearly i think it's becoming clearer the winners in this category most of that conversation stems from online. you take a company like best buy. best buy has done a phenomenal job building out digital capabilities who are the winners in a prolonged trade war. what i look at is where are the companies that have pricing power that can pass along higher prices to consumers even the dynamic. best buy fits into that camp as well >> brian, thanks >> good news on a rough day, brian nagel from oppenheimer coming up, regulators from across the world are gathered in ft. worth, texas, on the state of the boeing 737 max jets what the faa is saying about a fix and when the planes could get back in the air. and the hardest hit names in ths&e p today include energy, hess, devon energy and concho all down 2% or more as oil sinks.

alright boys, time for bed.

listen to your mom, knuckleheads. hand em over. hand what over? video games, whatever you got. let's go. you can watch videos of people playing video games in the morning. is that everything? i can see who's online. i'm gonna sweep the sofa fort. well, look what i found. take control of your wifi with xfinity xfi. let's roll! now that's simple, easy, awesome. xfinity xfi gives you the speed, coverage and control you need. manage your wifi network from anywhere when you download the xfi app today. welcome back the faa meeting with regulators around the world to discuss the status of the fixes to boeing 737 max jet. and what it would take to get those planes back in the air

philip lebeau is at the faa facility in fort worth, texas, with more on that, phil? >> reporter: kelly, these meetings have been going on for about three hours now and while we're not allowed into the meeting, we have a sense from talking with the faa about what's being discussed and essentially, this is faa leadership three things the regulators around the world and there are 57 representatives who were here, basically tells them where things stand with the 737 max. the acting faa administrator is telling them, there's no time frame for when they will lift the grounding and recertify the max. here's what he told us earlier today about when he thinks the max will be back in the air. >> could be a month, two months. any of what you just said but all determined by what we find in our analysis of the application. and we're pretty confident that the application is in good shape and when we get it, we'll make

our analysis >> if you look at shares of boeing, keep in mind that the airlines that either fly the max or have ordered the max or currently meeting in montreal, talking about the status of the airplane and when it might be possibly back in and reuters out with a report in the last hour, kelly, saying it will take an estimated 100 to 150 hours per plane to recheck those planes, get them ready to be back into service. it's not like you can just flip a switch and say you're ready to fly. it will take time for the airlines to get the planes ready. >> absolutely. the timeline keeps dragging out. phil, thanks very much philip lebeau. china running out of u.s. products to tariff what else do they have in their arsenal to heat it up? what they've used in the past and how it could hurt the u.s. economy when we are back and they have to work.

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tensions continue to escalate between the u.s. and china, it's important to remember this is not the first trade dispute where china has played hardball and as china runs out of u.s. goods to tariff, what other weapons can they use in the trade war? seema mody is here with a closer look. >> specifically, rare earth

metals and compounds, kelly. this trip that president xi jinping took to unearth the mining facility and a strong message to the world and these are chemical compounds used by apple it was certainly an example of how china can use other types and expert quotas with rare earth prices to skyrocket, that's really helping their chinese companies and hurt their non-chinese companies. >> at the time, i believe, that was japan. you talk ud about this, how even india could become a possible jousting partner in a trade conflict so we talked earlier about this song that's going viral in china that kind of urges people to take on the u.s. is there any evidence that would play out on the ground in terms

of people reacting poorly to whether it was japanese or korean or american goods >> it's interesting. china in the past used boycotts to exert economic pressure on having a diplomatic dispute with case in point, 2017, with south korea and china, said the chinese citizens to stop with the country, $llion t to south korea's economy and then the territorial dispute with philippines resulted in chinese not buying bananas from them that's a key export from philippines and then in 2010, territorial dispute with japan resulted in the chinese boycotting cars. this has certainly been a tactic the chinese have used in the past and the question, can they use it with the u.s. amid this trade fight? >> rare earth, probably the most important one. australia has some production. they're trying to do more in the u.s. almost a decade now but no real progress. >> fascinating back in 2010, when we saw this story play out with china and japan, didn't really see a lot of other companies say, hey, let's start

developing our own rare earth. still, china commands 90% of this market. >> we'll see if dhanchanges, sea modi, thank you. i'll join tyler for "power lunch" which begins right now. >> indeed, it does, kelly. we'll see you over here in just a moment or two. i'm tyler mathisen new at 2:00, stocks go south as investors look east mabeing too optimistic about getting a trade deal done quickly with china so do investors need to reset or is that what we've been a part of the last few weeks? another area, trade tensions felt is in the oil market. crude tanking today down 12% in the last month how low might prices go? another worrying call on tesla and consumer reports, warning about auto pilot feature in the tesla an wileyspeak to us first about it as "power lunch" begins right now