announces more will be here with us, whether -- >> one week until the september 1st deadline and we probably will hear a lot of maneuvering around that. the s&p 500 closed just barely off the august lows, so pretty much down at the bottom of the range again. >> don't miss the special report "markets in tour menounos" tonight at 6:00 p.m. we will be there fors. >> that's it for "closing bell." >> "fast money" begins right now. live from the nasdaq market site overlooking new york city's times square this is "fast money" i'm melissa lee. traders on the desk, sincere, brian kelly, karen finerman and steve grasso a major market sell-off, stocks plummeting as the president turns up the heat on the trade war with china, the president blasting china in a tweet at 10:59 a.m. eastern time. and look at the market reaction after that stocks plunged and never recovered. we finished the day near the lows of the session, all of this as fed chair jerome powell

hinted more rate cuts could be coming due to the trade war. steve liesman is at the fed summit in jackson hole, wyoming, but we begin the washington where the president is expected to announce new actions against china. that announcement could happen at any moment. ylan muay is live with that? >> reporter: looks like that response is happening right now. the president put up several tweets, including one that said our country has been losing billions of dollars to china every year with no end in sight, and china should not have put more tariffs on 75 billion dollars on u.s. products that's politically motivated. he said starting on october 1st, the 250 billion dollars of goods and products from china taxed at 25% will be taxed now at 30% he said additionally the remaining $300 billion of goods and products from china being taxed on september 1st at 10%, that now will be taxed at 15%,

and he thanks us for our attention to this matter i think markets have been paying very close attention they've been waiting for this response president trump had said that he would issue a statement on the next step forward and how he would respond to the retaliatory tariffs from beijing now we have it new tariffs starting on october 1st, 250 billion dollars of goods and products from china currently taxed at 25%, now going to 30%, and the list of goods that would be taxed at 10% on september 1st that now will be taxed at 15%. guys, melissa, back over to you. >> all right thank you very much, ylan. we are all sort of shell shock by the tweets coming exactly as we were talking to ylan mui in washington he was increasing the amount of tariffs that goods would be taxed. this will be an impact on u.s. companies as well as the consumer. >> i think the electronics and certainly some of the small

appliances, these are places there's nowhere to hide. i think the response we saw in that part of the sector late day, but to be clear it is a dizzying dynamic of spiraling of this news. we still don't really know where it is going to settle out, but clearly you have increased the pace just to remind, it is not just trade tariffs. remember, when the president uses the word "hereby" american companies will, we are talking about restrictions we are talking about sanctions i remind you we are doing this around the world as well i know china is the most important and foremost in everyone's mind, but, again, we are talking about trade restrictions we are not just talking about tariffs. i don't think we can even quantify that, melissa. >> yes when you talk about taking the global supply chain and global trade and putting it in -- and halting it, effectively that's what you're going to end up doing here, that's not good for stocks we saw it today. i can't imagine these tweets and raising tariffs will be any better for stocks. not only does it create uncertainty, which we all know that the stocks don't like, but it also creates a drag on the

economy. it creates a drag on the consumer it creates a drag on companies what company is going to go out there and say, you know what i am going to open a new plant because i've got some kind of great view on what's going on in the world. it is just not happening. >> yes to me, brian's point, the last point is the most important one. let's say you don't take seriously the tweet of "i hereby order". >> right, out the window. >> let's say you don't take seriously jay powell, who is a bigger enemy, let's say you don't take any of that at face value. i think the much more important message from that is we have a very schizophrenic approach to how we're going to solve the trade war. are we going to talk now we're going -- i have g7 so i will sort of muddy the waters. how are ceos supposed to make decisions? how are they supposed to spend money? how are they supposed to feel confident? we know that confidence is really important part of keeping the economy moving in the right direction. >> special as this tit for tat seems to be escalating it was only this morning that

the chinese said they would slap tariffs on 75 billion. >> let's break it down before the tweet. that didn't make sense to me. >> it doesn't have to make sense. why did trump tweet initially -- >> does it help push the fed into lowering rates? why would they do it today >> i don't understand why trump is surprised when they respond that seems to me -- >> because powell stated that it was trade and lack of inflation and the slowdown in the global economy, those were the reasons for the pivot. >> okay. >> so why give him added ammunition on jackson hole -- >> you're saying why would the chinese help -- you think they're they're -- >> i think everyone is thinking about everything the other thing is he didn't say you have to pull out he said this is -- >> because he can't. >> why even take the tweet seriously then >> i just said, let's say you

don't take the tweet seriously. >> he said alternatives. >> but that's already in the works. >> companies have a responsibility -- >> you mean physically -- >> companies should have been looking for alternatives. >> companies have been looking for alternatives >> people fell asleep at the switch they allowed themselves to fall asleep and let china do it all apples, apples turning companies are turning. >> you are blaming corporate america by playing by a set rule. >> what ruling that china takes overall manufacturing in the world that set rule is going out of the window. >> let's say the other thing you said is true, do you think the way trump is doing this, with tariffs, not knowing what they will be, literally eight days from now they will be different than what people thought they were this morning. >> i don't think he goes about anything the proper way, but -- >> okay. >> -- at the end of the day do you think that there's a fair trade policy between the u.s. and china? >> you know what those are all good questions i don't care about that right now. what i care about right now is

that we don't know what is happening. we don't know when tariffs -- >> you're not going to know what is happening. >> that's the point. how do you trade the market. >> it has been going on too long. >> what does that mean -- >> every dip on trade has been a buyable event. buythe market. >> let them talk. >> let them talk. >> here is what i want to talk about. if part of the discussion over here is about triggering the fed or really who is the one that will drive the fed to the next move, today the fed is irrelevant the fact the market was hinging on every word out of jerome powell and it seemed as if this could have been a response to, you know what, let me get the fed into next year, from second to third year or sixth year, it is not about that. the problem here is that we really -- to be putting restrictions on american companies takes this into an entirely different realm it is one thing obviously to have companies to essentially be, you know, maybe coercion is not the right word, but ultimately finding ultimate sources for manufacturing, and there are some sectors able to do that.

clearly high-tech semi conductors, electronics, cannot do that. in terms of american production of apparel, yes, there are other places to go ultimately -- >> there's no restrictions, tim. that's the point. >> it has no bite to it. >> it doesn't happen overnight. >> we are talking about the stock market today the supply change does not change overnight that's the problem you have here there will be a period of time where these actions and this uncertainty is a drag on earnings, is a drag on the consumer that's why the stock market is effectively traded in a broadening range over the last year, and the problem you have is the more uncertainty and the broader that range is and the lower those dips get, something breaks at some point in time. >> people are getting probably sick of talking about macro all the time on this show, or maybe our viewers are getting tired of it let's talk about it from a bottom-up perspective. nothing that happens today is positive from a bottom-up perspective. i'm talking about confidence confidence, eps outlook. we ask why is the market reacting different to trade inversion than it was.

look, it was reacting to the macro. the equity market will react to the fact eps was up 2.5% a year ago, they were up 14 1/2 percent. there's nothing a ceo heard today that will be stock positive. >> let's get to powell because it was an important part of the story today. fed chair powell signaling more rate cuts could be on the way, especially in light of the trade tensions he spoke earlier today at the summit in jackson hole steve liesman is there steve, you spoke to all of these fantastic fed people prior to the most recent round of tweets from the president in terms of ramping up tariffs i'm wondering if this gives powell and company much, much more cover to go much more aggressively come september and october? >> reporter: that's a good question, melissa. i'm not really sure. i think what we know from the speech today is how the fed is going to react when these tariffs take place he was guardedly suggesting the

fed could be cutting rates in the months ahead even though he said the u.s. economic outlook remains favorable. here are some of the things powell said. he said there's evidence of global deterioration since the last meeting, said trade policy is playing a role in global slowdown, said manufacturing has weakened he noted there's only so much the fed can do as far as trade he sat down in an exclusive cnbc interview and backed up the chairman's outlook. >> the economy is in a good place. we try to filter day-to-day, but obviously the global outlook worsened since the july meeting. the global economy is slowing and there are inflationary pressures. we are not looking at any one day but at the trend in the data to make our decisions. >> reporter: for the record, clarity did not specify whether or not the fed would be cutting

rates. not every fed official thinks it is appropriate to lower interest rates. >> i think there were very koeg e cogent arguments i supported leaving rates the same and letting it play out a little longer. i haven't made up my mind yet. >> reporter: she thinks they're in a good place right now. since the president's tweet, the market is fully pricing in three rate cuts by year-end. in answer to melissa's question, i think the tradout come outcome more determinative of fed outcomes than anything else. you guys are right, the trade story is in front of the fed story, melissa. >> absolutely. steve liesman joining us from jackson hole, wyoming. it does look like at this point -- it almost looks like the fed is a derivative of trade because trade has a direct impact on the economy, the global growth outlook, and that will determine what the fed

does. >> and you saw it manifest itself in the stock market today. jay powell said, listen, there's no set way, set rules on how to handle a trade dispute, and they're going to be by the data dependent, which they always say. if you look and say, okay, a trade dispute is going to make the data deteriorate, of course you will have a fed that cuts rates. it is not going to help, but they'll continue to cut rates because that's all they can do. >> so are we at a point where the fed cuts rates and the market doesn't look at that positively >> yes i think you are at a point where it is 50 basis points is going to reenter the conversation. i don't think 50 is going to happen, but i think there was a shot that 25 didn't happen before i think there was a shot that they were going to do nothing and just say we will continue to monitor. now i think you get your 25. 50 enters the dialogue you at least get 25, but i don't know if there's a diminishing return. >> look. >> think there is definitely diminishing return i think it is going to come back again to trade where are we on trade? if they're making progress, then

the fed cutting or not won't be as important i don't know ceos out there who say, you know what, i would spend but i need to know what the fed is going to do on september whatever it is, on the last 25 basis points or not. that's not what they're concerned about. it is trade. >> it is the uncertainty -- steve liesman played a sound bite earlier, and one thing that stood out to me was her comment to him talking about talking ourselves into a recession that's almost where we are at this point with all of the volatility and the uncertainty are ceos going to pull the trigger? we were talking about this last night. it is another wrench in the whole sort of planning process of a ceo. >> so a ceo -- and a ceo has to listen to a fed who has no idea. let's be clear the feds had no impact on the impact of what trade meant, no idea of the impact of energy energy is in a deflationary spiral i think people are underestimating to the u.s. economy because of over capacity that's about to start happening. but i think if you think of the leading indicators that have been so important for economists

over the last 18 months, business confidence is one of them it is probably arguably the most important because that's going to dictate the next dollar spent in terms of cap ex steve is right i think the divided fed was not going to cut 50. let's be clear we had basically 25, september 25, october. 25, december, is what we started the week with. have we left the week with a different play yes, we have. >> you know, when you are talking about tax and tariffing at 30% instead of 25%, 15% instead of 10%, that's a big difference to your point on margins for companies that may not have margin room. >> absolutely. for companies that at some% already told us, hey, you know, this is going to compress margins for us and you are now making it worse. so anybody exposed to the global supply chain, not to mention semi con dungtductors, anybody t area apple is right in the

crosshairs anybody take sells equipment, talk about caterpillar i will go back to the fact some of these factories are here in the u.s. people work in the companies here, and if you are a ceo and you are saying, i don't know how much i'm going to sell, then how do you pay your employees more how do you hire more how do you do any of that. >> it is trickling down -- >> it will trickle down to the u.s. we're not an island, not isolated. >> retail comes to mind. macy's with an attempt to try a price increase unsuccessfully. >> right. >> it gives you the indication that the 15% will be a real problem. >> there are some that can handle it better we saw home depot and lowe's were able to do better with the pricing. i'm not even so much afraid of the tariff escalation. i am afraid of china taking it to a new level, right, and just, you know, apple, very iconic company, doing something very dramatic beside just, you know -- who knows what it would be but that makes me more afraid.

>> are you talking about -- sorry. are you talking geopolitics? >> yes. >> in china it escalates to something like that. >> we have an enemy today. that was a term that was applied. >> they're running out of stuff to tariff. >> right. >> it could be something broader than that. it is much more difficulty think for us -- one other thing. we are better off with having certainty, even if it is a high number on tariffs, having a lot of certainty and a deal. even if it is not a deal that we would like, at least you can plan around. >> you can plan around it. >> we have never had less. >> we never had less than we have this afternoon. having said all of that, let's look closer, look back on this really quick for the last ten days we have been talking about the resilience of the u.s. consumer, talking about the stocks that outperformed in the environment. if you saw some of those trade down today, and even a starbucks and a mcdonald's were not immune today's activity i think these are going to continue to be safe haven places, the u.s. consumer is fine. >> up next, headed back to

jackson hole steve liesman is sitting down with the bank of evening governor mark carney that's a can't-miss interview in 15 minutes from now. first, president trump is upping tariffs on china we will break down how that will affect these three big names here much more "fast money" right after this ♪ you should be mad they gave this guy a promotion. you should be mad at forced camaraderie. and you should be mad at tech that makes things worse. but you're not mad, because you have e*trade, who's tech makes life easier by automatically adding technical patterns on charts and helping you understand what they mean. don't get mad. get e*trade's simplified technical analysis. doprevagen is the number oneild mempharmacist-recommendeding?

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welcome back to "fast money" three big stocks feeling the pay. we're talking apple, caterpillar and fedex. how would you trade these three big movers who seem to be in the crosshairs of the ramping trade war. apple, tim >> i think apple is one to be cautious of around 200 i'm long in the stock and not running for cover here i think it is a case where you have a company that today of all of the iconic american brands that probably felt the hit, apple of course is that story. it is interesting. apple seems to have some sympathy in the white house. you know, it was tim cook's sunday night meeting with donald trump that almost changed the rhetoric on huawei's treatment so you have this sense that there is a pipeline going on back and forth of really understanding the business

dynamics i'm not losing my mind on apple here. >> i mean trump actually said he had one of the best relationships with tim cook. >> yes. >> does it offset concerns you might have in terms of the impact on apple in the trade war? >> a little bit. you go back to the point if china wants to make a statement. it is a pretty good one to make a statement with i'm long like tim, i'm long but nervous about it. >> as the president has shown if you have a good relationship that stays that way? i don't think so. >> the recession is now with the consumer the recession could be a manufacturing recession. i think apple fits into the bucket of a consumer-driven name it is up 30% year-to-date. i feel better at least he has a rapport that he can talk to him. will it mean a lot of difference on the macro no but incrementally it could change it for them i'm still on the name. i probably would buy more. >> fedex is a company specifically called out by president trump. he wanted fedex along with amazon, u.p.s., usps, to specifically go through

shipments and make sure fentanyl from china is not coming through to our borders, singled out. >> that's a nice thing and really easy to play that card and it is an emotional card. no, we don't want fentanyl on our soil killing our citizens. fedex to me has made a major adjustment in terms of the valuation, i will say this, and i think probably use this term at times when the stock was even a little higher. but i will call it trough multiple on fedex. i think you have determined -- systemically i'm not sure how they will get in and execute on that, but i think they're in the middle of any trade war. >> let's hit cat. >> listen, i think cat and fedex to me when you look at the charts, they're cliffs of death. >> they might be. >> wow. >> they look like they're about to fall off the edge. >> do we have music to that? >> look at it. they've traded side ways -- >> say it again, say it one more time. >> exactly >> i love it >> anyway, i don't like them

you sell them and you sell them again. >> all right well, i'm long i'm long the cliffs-of-death trade. >> in terms of fedex >> in terms of fedex and i agree that the fentanyl is a shiide show, not the issue. >> continuing coverage today in a special report tonight "markets in turmoil" following "fast money", up next, final trade.

welcome back just to recap the news that broke in the past half hour, president trump is hiking tariffs on 300 billion dollars worth of goods from china, taking them from 15% -- from

10%. we have goods that will be taxed at 30% instead of 25%, so a ramping in terms of the tariff in response to china this morning. to the final trade now tim seymour. >> enjoy the weekend on the beach, folks unitedhealthcare i think health care remains resilient. the earnings growth will be counter to the s&p and you are down 15% off the highs. >> b.k., brian kelly. >> monday morning, assuming, it is a big assumption, the vix is still in the 20s, i think you can buy some protection. spy, puts. >> karen finerman. >> what is isolated u.s. and shouldn't be involved here, cbs. this is what we do well, content. >> we do this well. >> when markets are in turmoil today. >> yes, they are. >> you know what rallies gold rallies you know what rallies more than straight gold? gold miner >> and bitcoin. >> and bitcoin for our friend bk. >> that does it for us don't forget, our "markets in turmoil" special on cnbc following "options action" at

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welcome, everybody the trade juarez cattiwar escal fevered pace the president raising tariffs in rapid response to china this morning boosting tariffs steve liesman in wyoming with mark carney. take it away. >> reporter: thanks, melissa with mark carney, governor of the bank of england. china escalated tariffs, president trump escalate it. talk about the global effects of the trade war between the u.s. and china. >> obviously can't comment on today's effects, but if we take a step back what has been happening is the direct effects between the u.s. and china of the actual tariffs, you know, they're starting to get up towards potentially over the course of