here's your top five at 5:00 this is what it sounds like when hawks fly. how the fed spooked the market with just two words -- the words and why they shocked everybody ahead. stocks dropping yesterday, the most since may on the news the question is where do we go from here. the busiest day of earnings season more than 50 companies report their earnings today between earnings and the fed, invests may be at a cross roads. a developing story in texas. crews battling another fire at a u.s. oil and chemical refinery it's the second accident at that plant just this year

and fight night. round two in the motor city. ten more democratic presidential hopefuls taking the stage and debating the issues that matter to the markets and your money -- kind of. it's thursday, august 1st. "worldwide exchange" begins right now. >> afternoon, good evening and welcome from wherever in the world you may be watching. by the way, welcome to august. i'm brian sullivan thanks for joining us. behind us here is the intraday action in the dow yesterday. the dow from peak to trough fell more than 450 points the upside is that the index closed off ets worst levels of the day. the dow finishing down still 333. it's all because of this man right here fed president jay powell delivering the bank's first

interest rate cut in more than a decade the problem for stocks is that powell also failed to deliver a guarantee of more rate cuts down the road something both investors and one guy in the oval office are really hoping for. it all came down to two small words, mid cycle adjustment. >> the committee is really thinking of this as a way of adjusting policy to a somewhat more accommodative stance to further the three objectives to ensure against downside risks, to provide support to the economy if those factors are -- where factors are pushing -- pushing down on economic growth, and then to support inflation. so we do think it will serve those goals. again, we're thinking of it in the nature of a midcycle adjustment to policy >> president trump quick to criticize powell saying he let the country down and he's not keeping pace with the aggressive rate cutting cycle seen in other

countries around the world here's houw things look righ now. it looks like we continuwon't ce to see that follow through in selling. the dow is up. the lone bright spot yesterday was the u.s. dollar. bonds also got bought at the fed's comment, which is was less dovish than expected benchmark ten-year treasury yields at 2.04%. they may be going close to going back below 2% on the ten-year yield. the mover yesterday was the currency marker. it wasn't just the dollar, it was bitcoin. bitcoin spiking on that move chairman powell's comments felt here and in markets around the world. let's talk about how the markets

are going. willem marx joins us in london with a look at how the european markets are reacting to our moves and our commentary >> no clear direction, in this morning on this side of the atlantic in reaction to what chairman powell said yesterday and what the fed decided to do i'll walk you through the individual indices here in europe most of these moves are driven by some earnings numbers out this morning let's start with the uk. the ftse 100, companies like the london stock exchange. barclays bank reporting some quite good numbers 82% in profits you have standard chartered and you've got the ftse 100 down a quarter percent. shell with some not great numbers out thanks to the weaker oil and gas prices that's really weighing on these uk equities. in germany, siemens, we had those terrible manufacturing numbers out of germany another big negative impact on the german market. in france, back to the banking

stocks, socgen with positive numbers. the cac there in paris more than a quarter percent higher in italy, the ftse mib, the strongest performer here again, no clear direction, brian, in response to what the fed decided to do last night >> all right we'll see if that market turns around investors clearly disappointed the federal reserve was not as dovish as it hoped. now you know the setup some investors may not like it, but it is what it is as they say, you have to play the hand you're dealt. let's figure out what might work in this fed-controlled world and bring in sylvia jablonski. so, the fed is done now, may be done with rate cuts for the rest of the year. like it or hate it, it is what it is. what are your clients starting to do or doing with the current fed environment? >> not a whole lot different than what they were doing before the fed announcements. so the fed announcement was

interesting. if you caught the first five minutes, the market barely reacted at all it was sort of what was expected flash forward a half hour later when we dug into the commentary and it felt more like a hawkish cut, the markets pulled back we had the worst hour or so in the past two months in equity markets. if we take a step back from this and think about what it means, why did the fed cut 25 bips? we could have argued whether or not they should have cut at all. the consumer remains strong. spending is up 4%. job numbers are good the big issues in the economy are manufacturing slowdown and trade tensions companies having to worry about going to china, where to manufacture spending to get out and to continue global growth. and not so much that rates are too high what i would say is what we're seeing is sort of flowing into the same sectors we've seen flows into tech we've seen flows into growth

over value, cyclicals over defensive. flows into semiconductors. we have seen flow into gold. yesterday the last hour or so would negate what i'm saying, but if we come back to the market this morning and look at that 2.04 number, rates are pretty low you know, the security trade really is gold you have your growth, your cyclicals, no recession. you generate some alpha there and you hedge with gold and other alternatives >> if interest rates are low it might entice people to buy things like boats, cars, maybe even housing you have one of these three times bull etf, it's doubled this year. are you still seeing attention in the home builders >> we are. one of our marketing guys came out with a great line, home builders is nailing it now love it.

leonard, d.r. horton have had an epic year, up 20%, 30% we thought the housing market would slow down. they went into the new entry market instead of the high-priced hamptons mega mansion market and they have benefited from that. you have masco up 20%, 30% off of higher sales with windows and cabinets while the headwind there could an slowing economy, keeping rates low may keep that sector propped up it's one of the top ten performing etfs year to date, along with tech, smuemiconducto and gold it's a surprise, but the low rates are holding that sector up >> you know who does not care about the federal reserve or the rates? technology investors for the most part apple has no relationship to what the federal reserve does the f.a.n.g. stocks no relationship are you still seeing interest in

technology names >> sure. apple earnings crushed it wearable s were up, a unique client base. we were worried about a china slowdown, and they had about 9 billion in sales there oracle was up, visa, mastercard, alphabet, talking about buyba buybacks the sector just keeps reworking. margins are good growth is strong invests are continuing to go to stocks that have continued to perform well >> no sign of lack of appetite on technology. people still buying it they still want it >> people are still buying it. the average daily trading volume for us over the last 80 days is up the one beta index up.

you have growth over value with a 7% spread. so investors are still flocking to those names not saying we haven't pulled back and gotten defensive, but if you're looking for alpha, tech is the place to find it >> i have to tell you, your co-worker hammered home that point. >> he sure did >> thank you very much >> thank you when we come back, much more on the fed, jay powell, the global market reaction a big interview with william poole. that's an interview you cannot afford to miss. and another trade war casualty qualcomm suffering its fate at the hands of huawei. we'll explain why. it's not just them exclusive comments from another chipmaker on how that company has taken the trade warhead on. and yet another big fire at a houston area refinery leaving dozens injured the latest in what has been a string of savage industrial

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a rainy and quiet day in hong kong. the chinese foreign minister blaming the united states overnight for the increasingly large protests saying it is somehow the work of the united states somehow. all right. let's get back to the markets.

shares of qualcomm under heavy pressure the company issued a weaker than expected outlook and blaming the trade war for recent weakness. that stock down 5% arjun kharpal joins us live from a technology conference in yokohama, japan with more. >> brian, it's a specific trade war issue and it is related to huawei i was listening to the earnings call earlier from qualcomm and the amount of times they mentioned huawei in that call was staggering the ceo of qualcomm said that huawei's share gain in china was a big reason why qualcomm reported those worst than expected numbers let me explain why huawei had a record number of shipments for smartphones in the second quarter in china. and it had a huge number of its shipments specifically in china. that's bad news for qualcomm huawei uses modems made from its own silicon factory rather than

qualcomm's on the other hand you had qualcomm customers see declines in the chinese markets so you had the rise of huawei using its own modems, and the decline of qualcomm's customers, and that equaled bad news for qualcomm the other thing that disappointed wall street was the guidance from qualcomm if you read the earnings statement, what it said was that the guidance excludes royalties from huawei. the reason for that is because huawei and qualcomm are in a royalties dispute. that's another huge cloud hanging over qualcomm ander semy >> you also caught up with the intel ceo at that conference what did he have to say? >> that's right. bob swan was talking to me about how he's seeing a slowdown in the china market, that's impacting intel's broader market and i asked about huawei, intel was a key supplier to huawei now u.s. firms require licenses

to sell to huawei. i asked about that process and where they were in the process >> the process now is we file licenses to try to get approval. we submitted quite a few licenses the administration announced last week they will try to process the licenses from the industry in an expedient fashion. we're encouraged by that >> so, intel confirming that it has applied for licenses with the u.s. government, but been swan told me it hasn't received a timeline on when they might receive those licenses clearly huawei and china are a big black cloud and you saw that in the qualcomm shares

>> arjun kharpal, thank you very much still on deck, why beyond meat is bracing for another day of losses. some early investors are cashing out of the alt meat business. and welcome to august. on average, dating back to 1980, august is the worst year for the month for materials, will that happen again or will this year be different find out when "worldwide exchange" returns.

welcome back it is done the london stock exchange striking a deal to buy refinitiv for more than $14 billion. the deal will help the lse expand into over-the-counter trading through refinitiv's matching platform. this is also the biggest competitor yet, once combined, to the bloomberg data empire the lse stock market up 6% also up, royal dutch shell second quarter profits slumped missing forecasts primarily due to lower oil and gas prices. revenue dropped about 7% production did increase about 4% in the quarter rds down 4.5% right now.

and more on the stock captivating everybody, beyond meat is pricing its secondary offering at $160 per share today, an 18% discount to yesterday's close. that is still more than six times the company's ipo price. beyond meat plans to sell million more shares at that price. still to come on "worldwide exchange," investigators are searching for a cause in the latest of a string of refinery fires in the houston area. we had another one yesterday the second at that facility this year plus woodstock 50, if you even heard about it, it's been officially canceled. we'll tell you why when "worldwide exchange" rolls on.

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all right. welcome back another fire hitting the chemical and refining industry 30 people suffered minor injuries when part of the massive exxonmobil plant in baytown, texas caught fire on wednesday. some drentz residents said the explosion shook their homes. the cause is still unknown this is the latest in a scary string of accidents at oil, gas

and chemical facilities. this is the second accident at that plant just this year. it also coming on the heels of fires and explosions in philadelphia, houston and crosby, texas. we've been on the scene of all of those we'll continue to stay on this story. let's check the other headlines out there on this thursday morning phillip mena has those. an urgent search and rescue is under way for a navy pilot who crashed during a training mission in death valley national park that pilot was flying an fa-18 super hornet over an area dubbed "star wars" canyon seven tourists on the ground suffered minor injuries. the cause of the crash is under investigation. more than eight years after the death of osama bin laden, u.s. officials tell nbc news that his son is dead he was largely expected to be the face of al qaeda's next

generation his last known public statement was released by the terror group last year. officials did not say where, when, or how he died we know the death happened during the trump administration but it's unclear what role the u.s. government played in that if any woodstock 50 has been wood stopped. the anniversary festival was officially canceled yesterday after headliners including miley cyrus and jay-z pulled out money and venue issues had critics predicting this announcement for months. the organizer, michael lang, told rolling stone he was disappointed to pull the plug. he blames early creative disputes with financial backers for derailing that event >> it's all about capitalism not supposed to be, but it is. on deck, president trump not mincing words when it comes to his feelings about the federal reserve. doubling down on putting powell in his place we'll give you his comments

ahead. and a big interview, an exclusive with bill poole, what does he think of the fed's move? you'll find ounet xt at leaf blowers. should bed [beep] you should be mad your neighbor always wants to hang out. and you should be mad your smart fridge is unnecessarily complicated. but you're not mad, because you have e*trade which isn't complicated. their tools make trading quicker and simpler. so you can take on the markets with confidence. don't get mad. get e*trade and start trading today.

watch not only what the fed does but what the fed says >> it's not the beginning of a long series of rate cuts i didn't say it's just one >> the global markets rattled

after hearing those words from jay powell. and president trump is disappointed why he says powell "let us down." and debate night the gloves coming off in detroit. democratic presidential hopefuls squaring off on everything from healthcare to trade. it's thursday, august 1st. you're watching "worldwide exchange" on cnbc. ♪ welcome back and good morning. 5:30 on the east coast thanks for being with us on cnbc welcome to august. i'm brian sullivan after yesterday's sizable drop, more than 300 points for the dow, here's how futures look now. they're up 70 points we're not seeing a follow-through on that sell. perhaps everybody analyzing the fed, looking at the market and realizing the economy is good. long way to go today dow futures up 70 points bonds got bought big time. we were like a hair from going

below 2% on the ten-year note yesterday. we're above that now 2.05%. we were down to 2.01% yesterday. what about in the asian markets? the japanese market,it rose. call it 0.01%. concern there that the united states might be turning into a japan-like economy, slow growth with no inflation. bad combination. the european markets, not a lot of movement. they have their own fed. the european central bank. they have been cutting they've been doing quantitative easing, remember that? so they're stimulating, which, by the way, frustrated our president that we're not doing more of that the big mover yesterday was currencies the more hawkish fed sending the u.s. dollar higher the dollar index rising about a half percent bitcoin also spiking on that move two little words having a big

impact on the markets yesterday and perhaps jay powell realizing the real power of his words. here with a mid show adjustment is steve liesman in washington with a recap of yesterday. steve, you like what i did there? you li mid show >> mid cycle adjustment is what you're referring to. the market expecting fewer rate cuts from the federal reserve. the chance of a rate cut in september has fallen to 39% from 70% before yesterday's meeting a third cut, which would be two more from here, now priced out just a 32% chance in the futures market, down from 57% yesterday it comes from this comment from powell during the press conference

>> the committee is really thinking of this as a way of adjusting policy to a somewhat more accommodative stance. we're thinking of it in the nature of a midcycle adjustment to policy. >> boy, markets fell off on that the chairman's communications skills sharply criticized. here is the former philadelphia fed president writing the explanation and justification left a lot to be desired now, what was unclear is whether powell intended or not to talk down the market or market expectations for rate cuts he later came back and clarified that he did not mean just one cut. i think also the market misunderstands powell when he says those terms if you look back at 1995, three rate cuts over seven months. back in 1998, three rate cuts of

three months i think that's what he was referring to, those midcycle adjustments, markets heard one and partially, i think, the market was out over its skis on this i think some retracement is probably warranted here. >> steve, stick around please. let's dive more into the fed and the message it is trying to convey we're joined by william poole. thank you very much for joining us do you agree with jerome powell's midcycle adjustment or do you believe that was a wording and/or policy error? >> both. what i think is that it's a big mistake for the federal reserve to believe that the one rate cut would satisfy president trump. let's be very clear, president trump knows very little about monetary policy. i doubt that he knows the

difference between a reserve ratio and a liquidity ratio. we've had some very, very sad experience in the past with presidential interference with monetary policy. in the mid 1960s president johnson went after chairman martin that was the beginning of the inflation and the instability of prices and interest rates during the late 1960s then in 1972 president nixon was able to strong arm arthur burns into a policy that supported nixons reelection bid. that was the beginning of the great inflation of the 1970s if we want to go there, we can get there. but the president must not be involved >> bill, do you believe then yesterday's rate cut was sort of

a gift to the white house rather than a necessary reduction of interest rates for the good of the economy? >> what i believe is that it came after trump went after jerome powell, went after the chairman and it did not satisfy mr. trump. i do not find the rational persuasive, the argument about a midcycle rate cut. we should keep in mind that the rate cuts midcycle, if you will, in the past were in response to specific circumstances one of them was the long-term capital management upset in the markets in 1998. that's when i first had come into the federal reserve, into my job

there was a specific circumstance what is there not to like about 1.6 inflation rate and unemployment rates that remain below 4% what is there not to like about this situation so if mr. powell does not stand up to mr. trump, we are headed in a very bad direction. he must act and act firmly if mr. trump wants to take control of monetary policy, let me suggested a way to d a way t. he should introduce legislation that requires the white house provide its advice to the fed ahead of every fomc meeting in writi writing, with an argument, rational and explanation

mr. trump must be willing to take responsibility foreraspon e increases when necessary >> steve, i know you're there. and i loved your question yesterday during the press conference your point was is this the end of sort of being data -- we always hear we're data dependent. is this the end of data dependency and -- >> an insurance cut or one where we follow the headlines. i made a joke later in the day that now kayla tausche who covers trade for us is the most important federal reserve reporter out there, which is fine by me the headlines she reads from what happens in the trade war are more important and decisive for federal reserve policy bill, i have two questions for you, if you don't mind first, do you think trade

potentially constitutes that shock that you were talking about that the fed is responsible for and the second is the failure of the fed to hit the inflation target do you think that's something that also warrants additional action here? >> the trade shock is what economists call a disturbance. a non-monetary disturbance you can't fix it with a monetary action so it's important for the federal reserve to make clear that it is a real disturbance, a nonmonetary disturbance, and the only person who can fix it is president trump. >> what about the inflation target not hitting >> yes what i would argue is that the federal reserve does not have -- as we've seen -- does not have precise control over the

inflation rate or most anything else for that matter the fact that inflation is at 1.6 when the fed has been trying to get it up to 2.0, that's not a very big deal for me certainly the economy is performing well. what's not to like about 1.6 inflation and unemployment sustained below 4% what is there not to like about that situation >> if i'm hearing the president right, the president's beef is really that the rest of the world appears to be stimulating. the ecb is cutting they're doing quantitative easing the bank of england will make their rate call at 7:00 this morning. they may not change but they're still at 0.75% japan has been stimulating since i was about 4 years old, and the chinese market is stimulating. his thing is will we fall behind the rest of the world and lose our advantage?

i just don't buy that argument many countries have done poorly over the years and the united states has done much better. we should concentrate on our own situation and not try to deflect blame or concern to what's happening abroad >> brian, richard fisher, the former dallas fed president who is a cnbc contributor, he wrote about this very thing in a note last night he compared it to his mother talking to his brother if bobby stuck his hand in the toaster does that mean you should, too only richard fisher writes that way. he says it's foolish to follow the policies of other central banks here and the fed should concentrate on policies. one other thing, brian, it's good to see bill poole, who i think i began covering when he

started in st. louis in 1998 >> wow you have been covering him a long time. bill pool from elkton, maryland. is it harve de grace >> there's probably many different pronunciations and i'm within stone's throw, sail boat ride of harve de grace. >> bill poole, thank you very much steve liesman, thank you very much and billy, if you're out there, i hope you're okay. on deck, fight night in the motor city take two. the most important moments from last night's democratic debate after this. and later, we'll tell you more about yet another massive industrial accident in what has been a savage string of them stick around just ok? (in dutch)

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another group of ten democratic presidential hopefuls r wrapping up their debate last night. they battled on topics like race, immigration and kind of the economy. biden and harris faced attacks from each other over healthcare. >> the senator had several plans so far any time someone tells you you will get something good in ten years, you should wonder why it takes ten years. there's no talk about the plan in ten years will cost $3 trillion >> unfortunately, vice president biden, you're inaccurate in what you're describing. the reality is our plan will bring healthcare to all americans under a medicare for all system >> the plan, no matter how you cut it, costs $3 trillion when it is in fact deployed

>> the cost of doing nothing is far too expensive. >> joining us is jimmy p ymy pethokoukis and john harwood the last two nights there's been a lot of talks about programs paid for by the same "wall street and rich person dollar. has the idea of any kind of fiscal management been completely tossed out the window in these debates >> that's certainly where the democratic party and probably republican party is right now. there's no talk about the debt and deficit. the general feeling, interest rates are low. they'll stay low we've probably been too titlght already we need to spend more. making the argument that we can't pay for programs may work in a general election but it won't work with democratic primary voters >> john, joe scarborough tweeted last night this is stupid.

why are they going after each other? even obama's policies and not trump. did you see it that way? too much in-fighting >> i did i think it was a good debate for donald trump and the republican party. you had serious attacks going back and forth last time we had joe biden being attacked on whether he was too in league with segregationists kamala harris was attacked by tulsi gabbard on whether she held evidence in a capital murder case. that's a serious thing to say about somebody biden going after cory booker's record on policing in the city of newark. jay insley going after biden it seems earlier in the process for democrats to go full on after each other or republicans for that matter.

usually you have a gradual work up once the field narrows to the more negative exchanges back and forth. they're going early with that. >> you remember when george moorman mathe foreman came back and everybody said he was too old, he took the bunches and then leveled people and would be back again. biden is taking these punches, is there any sign that's affected him in the polling? >> he slipped after the first debate when harris went after him. he's recovered that ground we've seen a remarkable stable race from april to now the same five people held the same 80% of the democratic vote. even candidates who did well last night like cory booker,

jewulian castro did well in the first debate but didn't move cory booker didn't move. i don't see a strong haymaker coming from biden. he hild held his own, took some last night, but he's not a strong debaterment debater. >> he hjimmy, going back to the economy, not a lot of conversation about the economy not a lot of conversation about china. healthcare, what's interesting is this, you can hate insurance companies and the healthcare system i get it there's millions of americans who work in this, this is a multi trillion dollar economy. many of those americans work in offices in wisconsin and pennsylvania an ohio look at where your billing goes. a lot of times it's those states are you surprised at the level of attacks on what is ostensibly the single largest american

industry >> yeah. they might want to talk about what is going to happen to really millions of workers, where there's job growth, massive industry what happens to them >> medicare for all. we'll kill an industry that employs 1 million people where will they go these are people in wisconsin they're listening to this thinking will i be out of a job? >> people generally like their private health insurance you have tons of people working for these companies. it's that exact observation you're making why republicans and republican intellectuals have given up on the idea of these massive overhauls of the healthcare system. they're too disruptive and they think it's bad politics. >> john, we saw buttigieg come out with this, do you feel that moderate voice which is hey, we don't need to tear it down we need to tweak it. will that shine or will the really strong sort of aggressive

progressive policy ideas, are they going to be what wins the day? >> well, you have to say when you look at the shape of the race right now that he wasing ie industry, not wiping out the industry same with michael bennett. he's hoping if joe biden collapses, he can move into that void the moderate voices are not leading the argument on stage, and you have an unusual zeal for some democrats to basically condemn the idea of a healthcare business which, as you say, very fast growing american business people can argue about how insurance companies behave, but it's going to be very difficult to try and uproot an american

industry that way. if you look at the polling, voters are with the moderate voices they don't want to get rid of private health insurance that's what makes medicare for all go down in the polling when you add that element i suspect that's where the democratic nominee will end up and kamala harris herself ended up with a private industry component of her plan. michael bennett went after her for that last night. >> you carve out private health insurance, you take about a trillion dollars off of gdp. john harwood, jimmy pethokoukis -- you would think the election was in november not in a year and four months. guys, thank you both all right. still got a year plus. on deck, across the pond, the bank of england, will they cut rates? find out coming up here, it all starts with a simple...

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welcome back 5:54 on the east coast all the headlines you need in about 60 seconds barclays posting better than expected quarterly numbers the bank announcing a 20% dividend hike. the bank of england will announce a policy decision on monetary policy at about 7:00 eastern time, that's one day after we cut rates the boe expected to keep rates on hold at 0.75% this policy meeting there comes amid the uncertainty of a possible no-deal brexit. and prominent investor mark mobius telling cnbc that the u.s. stock market will go haywire if president trump does not win re-election. he says stocks have continued to go higher because of the president's pro business policies joining us now is kevin

simpson from capital wealth planning one very simple question to you, kevin. after the mid see ccycle adjustt comment yesterday, are you adjusting what you recommend to your clients do we change our investment strategy at all? >> never a dull moment, huh? >> nope. >> i think for us we're investors, not traders so we're going to be continuing to do things that we always have done we look for companies that have great earnings we look for companies that take good care of shareholders. there's a lot of great things happening in the economy unemployment is at historic lows corporate earnings are coming in higher than we expected. the gdp report was stronger than most people thought it would be. and most importantly consumers are spending if consumers are confident and spending, that bodes well for the economy and for the stock market so our long-term goals, our long-term plans are unchanged. we think we're in a bull market

until proven otherwise and yesterday's pullback is something normal stocks don't go straight up forever. we like where we are >> do they go higher from here >> they don't go straight up wall street didn't like yesterday's decision or the commentary afterwards. the fed has some time now to massage the message. and rewrite the narrative a bit. i think stocks can go higher >> what looks attractive to you guys there >> we buy large cap, proven well known names. so it's a boring strategy. boring companies that increase dividends and earnings and make people wealthy overtime. so we're sticking with our methodology and just looking at companies that continue to increase earnings. >> such as right now we've been buying boeing which has been in trouble now, sometimes when stocks are

cheap it's a good opportunity to buy them we like the technology names and are hopeful august won't be another down month >> it is the dog days, but boeing, i like it. kevin simpson, thanks for joining us >> thanks. time for your morning rbi. today it's not random, it's serious. it's the growing number of industrial accidents happening in america if you have not been paying attention, in the last three years there's been at least 12 major industrial fires and explosions including the baytown, texas fire yesterday. 14 people have been killed many more injured in those blasts not since the bad old days, decades ago, have we seen this level of pace of accidents here's what's random, interesting and important. the agency tasked to investigate these accidents has seen its staff severely reduced as people leave and are not replaced the president said he wants to eliminate the department altogether these are massive facilities

dealing with extremely dangerous chemicals. we need the industry but we need to figure out why these plans keep blowing up. thanks for watching "worldwide exchange." "squawk box" begins right now. good morning two words from fed chairman powell sent the markets lower yesterday. midcycle adjustment. and president trump's response, powell let us down we'll tell you what comes next. qualcomm shares have fallen sharply. the ceo says huawei is partly to plame for i blame for its earnings miss. and who is cashing in on beyond meat's secondary offering we have the list of celebrities, business leaders and company insiders getting ready for a pay day. it's thursday, august 1, 2019. we have to appreciate this month, i think "squawk box" begins right now.

♪ live from new york where business never sleeps, this is "squawk box. good morning welcome to "squawk box" on cnbc. we are live from the nasdaq market site in times square. i'm becky quick along with joe kernen and andrew ross sorkin. it may be august 1st out there, but it's freezing in here. 27 degrees here. we'll start with the fallout from fed chair powell's announcement that yesterday's rate cut could be one and done the dow fell as much as 450 points before moderating losses. the dow was down by 333 points at the end, a decline of 1.25% almost the worst session we've seen since late may first let's show you where the markets are now. u.s. equity futures have gained become a bit of ground they lost yesterday. dow futures indicated up b