which has turned out to be a huge disappointment. they were worth more than $3 billion. about $30 million and trading >> wow and that tellsx you -- that les it right there.e jordan, thank you for adjoining us lord brown will be on "power lunch" today inhlfact,cpower lunch begins right now. af#u)zmelissa óee a major selloff on the street. the dow falling 400-plus points at the lows of the session as trade tensions remain high are we in for a september swoon? >> energy stocks sinking deeper intox bear markete range lord john browne will be here to could get. gun salese1e1 following two deay shootings in stores over the summer we'll bring you the details on this lppotentially ground-breakg

move and let'se1 get a check on where we stand with the markets on this first trading day of september. the dow is sinking, but just off the lowse of the session.r the s&p 500 and nasdaq also under pressure the trade sensitive small caps are down by almost 2% right now, and take a look a shares of boeing the big loser today. the stock down nearly 4% onçóns that new e1delays could keep it grounded through the travel season >> okthanks. as new tariffs kick in, president trump is warning china to make a deal now or else it will get tougher after he gets re-elected let's get to kayla tausche with the latest on these trade tensions kayla. >> that warning this morning comes as no date is set for the next round of talks between the u.s. and china and after a call thursday where china said it was making progress onw halting fentanyl shipments and asked u.s. officials for relief on

tariffs. president trump plowingi=aheadn the tariffs on sunday, on $112 billion in chinese goods followed by retaliationñiby beijing on $75 billion in u.s. goods. those tariffs from the u.s., i'm told, could have beene1 higher after learning of uhina's retaliation a couple weeks ago, president trump wanted to double existing tariffs at which point treasury secretary and the trade sector ceos to warn the president of the impact. according to three people wit&ó knowledge of that eeffort by late that friday, the president had tempered his hike to 5%.e meanwhile, china continues to pull out its own policy tools, filing wto complaints, lowersjf consumer prices, and easing regulations so shoppers go out and still spend money. whether those efforts can be effective until the 2020 election remains to be seen.5 melissa. >> kayla, thank you.

us dom chuxdis at the stock exchae following the sell off >> as we talk about the way the trade story is developing, it's always certain sectors and stocks that are in focus when the trade relations become a real issue if you look at the overall indic.uz have been hovering around these levels for just about thelp bulk of the day outside of the first couple hours of trading táaî] was down about 425 points at-9 the lows of the da so we're not far from there, but a bit of reprieve. around the 2900 level. it's still around thee1 52-week average remains. if you look at the sector, outperformers and underperformers, a sea of red, but not everything where defensive sectors like real estate, like consumer staples, utilities, carrying thee1 upside momentum if there is any out

there. meanwhile, financials and industrials are thexdones weighing the most. now, when it comes to the dow, we talk about the same stocks often. when it comes to u.s./china trade. those stocks again are to the z) rj news about t their relations there, but still, e1boeing, a more trade sensitive stock. áey get a good amount of business in china.ñ caáq)pillar, 3m, apple, all tñ/ue stocks down w2% or 3% at this stage as we wait to see how these they for traders and then the flight to safety, gold, we talked about it all year. traders have beenok bidding up e price of gold. they're doing itñ again today gold future is up almostj 15% meanwhile, the gold miners etf, up almost 2% there.o and newmont mining, up 1.5% as

well so melissa, kelly, it plays out in a riski] averse kind of way, the same stocks, sectors, and havens in focus. >> thanks very much. sment is typically one of thelp worst months for the jfmarket. with the trade dealxdnowhere in sw'$, áthis theo start of september swoon. let me bring in tom çli, and quincy crosby is chief market strategist withw3prudential financial. what domwas sayinghut gold, gold and silver have done well, and now today, more weakness in -- sorry, more strength in ì% expect that trade to continue to shake out? >> well, you know, you've got a lot of retail buying into gold that could get s@() because remember, whenç you have retail buying of golt asçóopposed to institutional buying of gold, they're the weak hands so any sense that the dollar weakens, any sense that the treasury yields inch higher or any headline, by the way, on tariffs that actually sja

down and get those guys out of that trade gold gld, in myt(portfolio. we have0l had that for some ti as auhedge. it's geopoliticale1 concerns it's tariffe1 concerns, equity selling off concerns, and one other. have thetf ceremonial season the world will be buying gold. perhaps a little too expensive now, but they buy gold for the wedding season it's retail buying of gold and very strong. >> so tom, to quincy's earlier point about there being a lot of sort of hot money in gold or in precious metals right now, where else do you see thate phenomen? #ñe sudden shift here? >> i mean, i think there are markets that kind of lit up this year you know, gold definitely seems like one because it's been working as a hedge i do think there'se momentum

behind long-term bonds i think they have been moonshots this year, and it's incredible fall further, you know, we could see someájf mas moves in u.s. treasuries i think that's another place where we're seeing momentum trades, but you know, do these things stillx.- if wee have resolution with china? i'm not sure >> people don't seem to bef -- mean, i don't know how you possibly bet onqthat outcome one way or another, have we gotten any new information in the last couple weeks that tells you,i yes, we have to be nimblejf and ready to forw@ resolution or does it seem like the president is in this for thee long haul d is not about to pull surprises out of his hat >> i think the stock market is telling us something that's kind of interesting we had some really negative and deteriorating and scary headlines and the s&p has kind of hung in e1there i do think there's underlying

resilience in the equity markets, but i think the reason it's happening is one is china is adapting to this through currency adjustments and i think u.s. companies are really starting tojf handle this throu moving the supply chain. i think maybelp the damage to s profits isn't going toñ be as scary as people ñthink. >> as we see the ten-year yield go to 1.44, 1.43, and possibly lower, is there a point ato whh you say valuations are not q" ? therñ is a line in the sand, so to speak, which lower rates mean bad things for the economy as well as stocks >> absolutely. we'll get a better sense of it with the isme service sector, we'll see whether that moves below 50 it hovered justñrabove 50 we'll see about hiring expectations and new orders. if we see a edeterioration in e labor market, hours'c ñíworken ápe recession, whether it mattersw3 this time, money coming into the

treasury market and pushing yields down further. >> i would think the concern is this all eventuallyçóhits the consumer which has been the american economy then services contract, and at what point do you gete1 concern 70% of the economy won't be there? >> the consumer is caught with sort of two headwinds and some tailwinds. the headwindt is the confidenc and i think every day they see these headlines about recession risk, it's going to makezthem cautious but in their actuale1 pocketboo lower interest rates meanse lor mortgage costs, lower debt service. it's stigq%y >> how many more people are going to refinance how many peopleq-- i mean, at a certain point, they're not going to get lower rates and banks aren't going to keept lowering rates. they can't make money. >> just, you know, it was ny4ñ even 15e1 years ago when people said it was a mythical rate to have a sub-4% mortgage

3%, and look, if rates gete low enough, what happens if there's a 0.5% 30-year mortgage theoretically, i think it would be -- have very big positive effects. >> ih(0nk the banking industry just fell out of its chair listening to that idea >> as you know, in ó0italy, for how thexl1 lower rates have be source of wealth creation in countries thyt1 have benefitt from it. >> one nice correlation for the market for investing is the lower prices at the gasoline station. nice correlation with fast food. you go and fill up, you hav/1 money left over, you're going to go to the next drive-thru, maybe not walk in and exercise, but we're seeing that positive correlation.x gasoline prices aret(attractiv unless you're in california. >> fast food, there's some place to watch, and they have done so well this year thanks really appreciate it

>> after thrashing the bahamas, hurricane dorian is aboutñr100 miles off the coast of florida o now. it has weakened to a category-2, but there are big questions about what it's going to do to the carolinas.c) (áváup&clie he storm. >> thanks, kelly new video that was just shot by cnbc.com airline reporter leslie josephs, who flew@.q!the air the video once we get up, you'll see really e1amazing footage we have we can hear from her as well >> the sky opened up a little bit. it was not y& well formed as th day before, which is part of the reason why the winds were slowing and we saw the downgraded forecasts for the >> and you can hear she was jus saying really an amazing flight you saw that blue sky, that is the clear area, the@benter of the storm, and then the eyewall, the most powerful part of the storm. let's talk about that because we have the latest updates with i dorian

the eye itself not quite as discernible because the winds themselves are starting toe weaken the wind field, the extent of how powerful it is, has expanded, but thee1 winds aren't as strong. and starting to finally move to the northwest at 5 miles per hour check out the latest track forecast for dorian. you'll see it's holding on to a category-2 strength as it continues to move northward through today and right into by thursday, though, cutting close to the carolinas notice that cone of concern does cut over both south carolina and north carolina and that's t$v bigw concern it maytñ only be 15 to 30 mil off shore,ñ meaning big storm surges of 4 to 7 feet are possible as well as heavy sas let's talk about the heavy rain and the forecasts we have currently as we move forward.w not just for carolinas but across the entire region, what tat let's see if we can pop that up for youe1 and see. bahamas picking up in some areas up to 30t inches of rain ealr. for florida and georgia, 3 to 6 inches and for the carolinas, 5 to 10

to oke1compile with other forecd problems like storm surge and those hurricane force winds. back toe1 you. >> thank you >> coming up, walmart taking a major step to pull back on gun sales. we'll have all the details and we're watching a big selloff on wall street. industrials the worst performer sector financials down e1.5% energy is also lower the worst xperformer in the moh of august. the only negative sector so far this year. coming up, we'll talk to the former ceo of bp, lord john browne ayitusst wh

lunch. u5iqannouncing plans to &háf ammunition for short-barrel rifles and handguns. stopping sales of handgunst entirely in the state of alaska the last state with walmart shoppers to no longer openly carry firearms in stores 1 s andrew ross sorkin wrote ane1 on letter calling for him to take action against gun violence. andrew joins us live on the phone. great to have you with us. >> thank you >> i thinkl most people say th is a step in the right direction. it seems fairly narrow, though, from what you're calling for in your column. what is your assessmen up until month and a half has grappled

with tunwilling to do so in pubc the bigger issue ise1 lessó1 a what they're doing in stores and more about what it sayse1 about the debate in washington if you understande1 what doug mcmillan is doing today, he's publicly steppinge1nto the aren on the issue of gun violencee  america. he is writing letterse1 to theç president, he'se1 writinglp let to congress. he is advocating not just for what he is doing inside his own stores but for ac larger debate r'gton on this issue virtually, everyñ ceo i have talked to since i bega' coverin this about ayear and a half ag and really advocating strongly for more sensible approaches to gun sales in america, and let me be clear,xdi have never -- my argument is never been about stopping sales entirely. it's about saying point blank that we have a problem lphere. and that theu. laws as construcd today don't work

and effectively doug mcmillan has now saidé$at is thak case. having the largest retailer in the countryt(say thate aout l may give licenseo to other peoe who have thus far been unwilling toe talk about és discussion, and when you think about allw e over all this time, the business community has largely stayed out of it, out of fear and i think that today, the importance heret(of what may be changing, the tipping point, is actually the licensew that mcmillan is going to give any about this >> what's the nextt7 domino, your view, andrew, in terms of mcmillane exerting pressure on overf ceos? could it be the banks falling in line as well, not providing financing for purchasing of guns >> thus far, bank of america, citigroup were the first big banks to step out on this issue in terms of providing financing

to gun manufacturers not to customers or to credit card networks. the question, of course, is whether the banking system is going to get interested in this issue. it's goingñ to start thinking d the credit card industry start thinking about reasonable steps they could take to create a fkd possible i also think you're going to see them talk about this in washington you know, for so long, for so many years it's been the ñnrañrversus ve much lesserok funded organizations.teqjr'k that you the business community and corporate america say you know what, this isçóactually somethg that impacts us, the same way, by the way, they stepped out in the past year on issues like immigration and sot many other things this was consideredfá a third rail, but maybe now it's not the bigger issue is ceooks going to washington from allç walks life talking about this issue

and putting pressure on lawmakers in a way you haven't seen before. at least that is my hope that's my optimistic take on >> you wrote this open letter at the tbeginning of august, andr, and i'm wondering if you ever thought there would be policy changes at the stores this quickly. i ask you this question because i'm wondering if you think that perhaps the next step is that walmart could actuallyñ put pressure on the gun makers themselves whiche is a step you called for in the letter that they perhaps could exert their leverage on the gun makers to say, make guns with fingerprint technology, for instance &ho you know, one of theni6g; tha has gotten lost in today's announcement is doug hast offed to -- offered his compliance system that walmart uses currently, which by the way, we should say is best in class. walmartçódoes not deserve the criticism to some degreew it's

of thee most responsible selle of guns today, and they have offereduneir compliancet syste and programs for free to other retailers around the country i think that's an important and interesting first step, and where that may go, again, you talk about exerting pressure on manufacturers, on other retailers,8áqfinancing and banking system i think this is going to give rise to some significant changes both in the private sector and also in the public sector and that public debate in we appreciate it >> thank you really appreciate it >> coming up, boeing, the single biggest culprit in today's selloff, costing the dow about 80 points as delays to get the 737 max byin the air threate to get longer. we have l e glalthanes covered stay with us office drones were the way to do it. [ laughing ] drone voice: l-o-l. our market share looks good, but... drone voice: where are the bagels?

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welcome back to "power lunch. i'm mike santoli at the new york stock exchange boeing, one of the worst dow stocks today following reports its 737 max may not be cleared for flight by the holiday travel season shares now down more than 20% from a march record high so how do you trade this aerospace giant right now?

let's bring in your trading nation team today. todd gordon and quint tatro. todd, we mentioned 20% off the high, but the stock had such a huge run going into that peak and has really traded swooi sideways for a while how does it leave you in terms of discerning the trend? >> the first thing i'll bring your attention to is relative performance of boeing to the etf. we have seen some underperformance but a bit of a hook-up. though industrials are underperforming, we're seeing boei boeing, which is the largest component, pick up we're messing around with this 200-day moving average on the next chart, maybe we'll get context as to where we could buy this a beautiful up trend as you mention eed correctly, michael. a huge massive gain. we simply digests the gains. we have a low of about $290 right here i think there's real value here, which is also comprised of the

blue parallel channel. if we can get something below $325, the risk is quite low for a potential move back to the highs. i don't say write it off yet >> quinn, would you be looking for an opportunity in this as well on one hand, it's hard to happy cap how the 737 issue and the china stuff is going to do, on the other, it's a global duopoly and this company has an order book for years ahead >> no question, and that's what investors have to be sort of aware of and really not get too blindsided fundamentally, the stock is very attractive unbelievably strong free cash flow balance sheet is strong. from our vantage point, there's too many head winds with not only the 737, but 14% of revenue still from china even though it's 20% off hikes, this is a no touch for us here, and investors have to be very, very careful thinking that this is, you know, buying the blood in the street, and it could go a

lot lower. so even though the fundamentals are attractive, it's not that attractive for us just yet >> in a way perhaps the stock has held up too well for the real value buyers to start getting aggressive we'll see how that plays from here todd and quinn, thank you. for more trading nation, head to our website or follow us on twitter. >> thanks very much. ahead on "power lunch," we continue to monitor the selloff. the dow falling 425 points at the lows, and yields continue to drop we'll get the traders' take. plus, oil is down more than 2% and energy stocks have sleeping deeper into bear market territory. after the break, we sit down with the former ceofo bp, lord john browne, to discuss what's happening to the sector. so ...how are you feeling?

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welcome back, everyone i'm sue herera here's your cnbc news update at this hour. 34 people are presumed dead in the california dive boat fire, and the search has now been suspended. the bodies of 20 victims have been recovered and divers have seen between four and six others in the sunken wreckage, which must be stabilized of the 39 people onboard, five crew members jumped in the ocean

and were rescued >> vice president pence urging ireland and the european union to negotiate in good faith to reach a brexit agreement that respects the uk's sovereignty and minimizes disruption to commerce he made the remarks at a news conference with the irish prime minister >> i can assure you we will continue to encourage the united kingdom and ireland to insure that any brexit deal respects the good friday agreement. we urge ireland and the european union as well to negotiate in good faith with prime minister johnson. >> the iranian oil tanker that was recently seized near gibraltar has gone dark, turning off its transponder. it's at the center of a dispute between the u.s. and iran. you're up to date. that's the news update this hour back to you. >> thank you very much, sue herera let's check on the markets the dow is down about 350 points 75 poins points off the lows

s&p down 28. nasdaq down 105. they're down 1.3%, the worst performers for the major averages the sectors. the worst performer today is the finances declines led by the reej nn banks and the etf that tracks them down more than 2% all get hurt right now the worst. >> the oil market is closing for the day. let's get to eric chemi. >> that's right. you can see the red behind me here for wti crude oil prices definitely under pressure, but bouncing back from the worst levels of the session. the demand picture getting hit by a one-two punch first, china targeting crude imports in the latest round of tariffs. the first tinal the commodity has been targeted in this long ongoing dispute, and following up it with manufacturing data that renewed concerns about our weakening global economy, and add to that apec's crude production rose this year, and that's giving traders a negative

outlook on oil right now >> eric chemi at the commodity desk >> energy the worst performer sector in the last month, down almost 9%, and the only sector in the red for the year. this as cride proiss sink. our next guest is a power player on the energy space. joining us is lord john browne, former ceo of bp thanks for being with us when you take a look at what is going on with oil prices and oil stocks we mentioned the stat for the month of august. the oil sector on the s&p 500 has lost almost a quarter of its value over the past 12 months. is that right for the sector are investors missing something in your view >> sentiment certainly has changed on the price of oil. although having said that, the fundamental indicators are reasonably strong. but sentiment is very negative about demand so but infantries are really in pretty good shape. so we have to see what happens small changes will make big

differences to commodity prices. i think stepping back, though, the oil sector always needs to be very careful about the level of investment it makes and the cash returns to investors. and investors are very sensitive to that. when they see oil companies spending too much money, they expect oil companies to waste too much money >> there was a "wall street journal" article saying 26 u.s. oil and gas producers have filed for bankruptcy this year when people read that line in that story, you think of the last oil downturn. when oil prices were so low, and it really had an impact on credit overall are we at that point now >> no, i mean, oil prices are reasonably strong. these companies are heavily leveraged, and oil companies who fail tend to invest in the future, and the future never comes. so it's too much reliance on expiration, too much reliance on the price of oil or natural gas rises. and so we see these smaller

companies filing but the big companies are in pretty rude health, i would say at the moment. they have done quite a lot to themselves to keep pretty strong >> speaking of root health, you're here with the british buck is below $1.25, and help us navigate the latest round of brexit headlines because it's headache inducing to follow, but all of a sudden it looks like the new leader may have lost his parliamentary majority what are you following how are you going to figure out what's going to happen in the next couple weeks? >> i decided i follow it closely, and the more closely i follow it, the more confusing it is there's important posts that hold the tent up one is the nation voted to leave, whether you like it or not. i don't like the idea, but the nation voted to leave. secondly, the prime minister we now have is determined to get us out of europe on time, and thirdly, many people in parliament are saying our role as mps is to stop it happening

abruptly so we're seeing a game taking place now. it's a very dangerous game >> do you have any feeling for how it's going to turn out at this point >> no, i don't, because every time i make a forecast, it somehow goes wrong today, just now, the speaker of the house of commons is going to permit a debate on whether the mps in the house can stop the government taking the country out on a so-called hard brexit >> wow >> so this is all uncharted territory. our country, the uk, is very different from the united states in that we don't have a written constitution we have a constitution which depends on people, quote, doing the right thing. and if there's small changes in behavior that isn't what it is, the so-called right thing, something goes wrong i think we're seeing some of that happening now >> what do you think the impact of a hard brexit would be, not just on the uk but also on

europe >> well, i think it will be very damaging it's clearly a loss of economic activity quite how long it lasts remains to be seen whether or until you couple it from a slowdown in the world economies which is taking place now, partly to do with trade wars but partly because it's that time in the cycle so it's difficult to say, but i think we'll see a slowdown and this will accelerate it. >> if we see an accelerated slowdown and we have already seen pmis, for instance, in retraction in uk and europe and japan, in many countries at this point, what does it do to how you think about the price of oil? >> so, oil, of course, is highly dependent on demand, but it's even more dependent on supply. and of course, the supply is variable because most of the oil in the world is not actually supplied by the united states. very important supplier, where the free market works, but by

many state-controlled enterprises. and state-controlled enterprises have different agendas for example, i'm sure that saudi arabia, if they would like to get an ipo of saudi aramco off the grounduld have to think hard about where they would like to see the prois offile. >> they just made changes to that effect today. these are typically huge moved, to see them take a guy out of a leadership post, and there was not that much attention paid how much clout has saudi lost if any in your view . it's difficult to say, but i would think they have been very clear. they would like to do a form of ipo, a form of financing with saudi aramco let's see if they do that, and they're clearing the decks to make that happen >> are you basically saying opec is going to be the backstop or put it floor in for an oil price? >> you know, opec, we have declared the death of opec so many times and it's still alive and well.

so opec plus russia is a very important controller and that will happen the other thing is i think we all get carried away with supply everyone thinks it all goes north. i think the permian is a very important basin, but i would expect the rate of growth of the permian to come down considerably >> we should mention while you're here, you have also written a book, your fifth book, in fact, make, think, and imagine just came out in the u.s. last week you do have an optimistic point of view on the future. you say look, engineers and that brain, those solutions, can solve a lot of our problems. can they solve brexit? can they fix what's going on in the permian? what do you think here >> they can certainly start fixing climate change, that's for sure, because i think when you start looking at all the tools and techniques we've got to reduce carbon dioxide, we have everything we need, all the engineered solutions are there we just have to put them in place, which means we need

incentives so carbon taxes, for example. we need to get those through otherwise, we're going to see carbon dioxide go up and temperature rise to a degree to whereas we don't want to see i think engineering always produces good results and unexpected, unintended bad results. no one expected to produce all the co2, for example no one expected the convenience of opening your phone with your face to be something to be used to survey people that you don't want to see. so but it's normally the case that injury produces great futures, sand what you must not do is stop engineering >> it seems to create its own job security >> it does, and also it produces generally a better world if you think of the world, our world is cleaner, better, it's

more educated, less people starving, and healthier. and health is a really important thing to engineering, then you need more engineering, not less. >> okay. make, think, imagine is your book it hits u.s. shelves today lord browne, thank you for joining us >> to the bond market now. rick santelli is tracking the action at the cme with some headlines today. >> i tell you, some headlines are that we went into contraction mode in the ism number this morning, and boy, you could really pick it out on a chart. look at an intra day of the two-year that swan cliff dive, that was 2:00, down about 5 basis points. 1.478 is the current yield close. we're challenging that same move at 10:00 a.m. eastern, current close at 1.47. we're challenging that as all maturities are. a two-day of italians, tens

under 90 basis points. a country with the economy of italy shows you how upside down the world is in foreign exchange markets, dollar suffered also at 10:00 eastern, but since it's still up on the day at all, it's new record territory for a 28-month high, and if you look to april of 2017, that was the last time the dollar index had triple digits at $100, and many traders believe with big demand in the dollar global, there's a good chance it will happen again. >> thank you very much >> tech tumbling today as a new round of tariffs kicks in. the nasdaq down more than 1% coming up, we'll speak with the head of an industry trade group that represents apple and thousands of other companies dat do they want the president too about china? stay with "power lunch." [leaf blower] you should be mad at leaf blowers. [beep] you should be mad your neighbor always wants to hang out.

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welcome back stocks are sliding today after new tariffs went into effect this weekend, and tech is taking on the trade war head on the consumer technology association, which is a trade group representing over 2,000

companies, released a statement today condemning the tariffs and also calling for congress to take action against the trump administration's decisionss gar president and ceo of the consumer technology association. gary, you're asking for a tweet. >> i'm not asking for a tweet. what i'm asking for is some reason we're asking president trump to put down that smartphone, which we love, and start getting to the negotiating table. because he's promised us now for over a year and a half this is just a short tf term thing, and we have gone along with it, not happily, of course, but he keeps increasing he's increased tariffs so much, now on almost every product that consumers are going to feel it in fact, business is already feeling it "wall street journal" today reported small businesses, almost half of them, are pessimistic about the economy. because of tariffs >> so you guys say the tariff, the new tariff list taxes consumers on $52 billion worth of their favorite tech products including tvs, digtt cameras, bluetooth earbuds, smart watches

and fitness trackers who's going to absorb the price increases? the consumer or the manufactu r manufacturers like apple glitz rr certainly not china, but the manufacturers like apple and best buy and so many others, there's a negotiate there. everyone is trying to do the best they can to cut costs and respect the fact that consumers are price sensitive, as they should be, but president trump is forcing us into a recession we're feeling it in so many different ways across many categories it's hurting american companies and it will be the trump recession and potentially the trump depression if it goes this way. that's what happened 90 years ago with smoot/hawley. the last time we put tariffs on a whole range of products, it led to the great depression and we suffered for years. >> how have your numbers dealt with the numbers that have gone into effect on sunday. that's what we saw with the threat of the border tax

>> well, black friday may be dull friday with these tariffsf landing. so essentially, as of a couple days ago, they're in effect for the new products coming in for the very important fourth quarter. and you know, they just jumped up two weeks go from 10% to 15%. some are going up october to 25%. there's obviously going to be price increases. there's an estimate by the congress now that this is costing the average american family several hundred dollars and prices are going up for all americans on a range of products so how are we reacting it's somewhere between shock and disbelief, and every two weeks it's a new tweet, a new uncertainty. it was mexico for a couple weeks. now tariffs on everything, the components affecting great american companies and it's affecting business confidence and the stock market look what's going on today >> just to put a fine point on the question, you're saying

nobody has pulled forward inventory in anticipation of the tariffs going up >> the tariffs were set to go up several months ago, but there was a new tweet a couple weeks ago saying it won't be 10%, it will be 15%. there's october tariffs as well. >> in anticipation of these long known deadlines -- >> when you're shipping bulk product across an ocean, it takes months to prepare. there may be at the fringes some accelerated shipping, every company has its own strategy, some believe for a while it never would happen well, it's happened and it's having a huge impact and affecting not only this industry, affecting retail, consumers, and several different industries obviously, it's affecting the economy. we're seeing the signs already in so many different ways from slower car sales to delayed car payments to all sorts of things where we're seeing a slow down in the economy >> just before we go, when you come out so strongly and call it the trump recession, do any of

your 2,000 members push back and say we support the president more than you're making it out >> you're right on saying we support the president's focus on china, but he has many other options he can do. he pulled us out of the us out transpacific partnership he is pulling us out of the world trade organization he hasn't done other things he could do he hasn't gone to reciprocity and go to partnerships, requirements of laws they could follow. he has other alternatives but tariffs are the worst alternative. there's one economist who thinks it's a good idea and sadly he is in the white house with the president today. >> thank you for joining us today, gary shapiro. after the break, we'll get the traders' take. we call it the mother standard of care.

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welcome back we got news alert out of washington, d.c. on google what's happening >> more than two dozen states

attorney general are planning to laumpl an anti-trust investigation into google. they're expected to make this announcement september 9th about state ags involved with texas taking the lead and it is a bipartisan effort. we were expecting some news this month after state ags met with the justice department earlier this summer and of course it comes as the doj and the house ub judiciary committee launched an investigation. now states looking to move forward with an effort multi-state anti-trust investigation into google on september 9th. back over to you. >> thank you we are seeing alphabet shares at session lows right now the dow down more than 300 points u.s. 10-year yield touching multi-year lows. jim, great to have you with us it seems like weak economic data, resparked fears of recession, same -- we have seen it play out before. >> sure. there's an added element

it is clearly two things -- trade and that crummy ism number today. there's also a report by morgan stanley that people talk about on twitter how they don't believe that the stock market can be saved by lower rates so i think that's nonsense. just begun the fed is just beginning its easing cycle starting if two weeks. i think it can be saved by that. technically the market's trading around 2900. if we finish above that today, i think the market will come to its senses, realize that low rates are somewhat of a panacea to markets not saying they are for the macro economic conditions. i don't want rick santelli to jump down my throat here but the fed can save the day. >> i get that but seeing yields dip, we saw the 10-year yield go to break 144 which is last week's low, you know, all bets were off on the equity side of it when do markets realize lower

rates down at these levels are still good for valuation >> that's a good question. i think it's relatively soon i think the pace we get to the rates is important, too. it feels like there's panic in the year then risk assets are hit trading sidewayins at a 145 levl for a while then the market realizes what are we supposed to buy? you get pushed into risk assets and will continue that way. >> jim, thank you. >> thank you. check please ines xt - at southern new hampshire university,

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welcome back one of the movers to watch today is boston beer, ticker sam we had the ceo on last week and they said they're tripling down. bill tooka sip of the seltzer and the reaction was basically -- eh. maybe that's why the stock is down nearly 7% in the session today. >> wasn't exactly a ringing endorsement, i guess. >> he said as people pointed out it is not sweet. it is a very kind of bitter -- >> it's seltzer in the point it's neutral. >> so i hear. >> in terms of the market today, seems like a real sort of battle between the belief that there is no alternative and when you have a low rate you have to go into risk assets and this belief that

morgan stanley is putting forth that with low rates there's support for valuation, that you should have higher valuations because the rates are so low is there a line in the sand? how low is too low how low is things are bad in the economy and that's bad for stocks, as well? >> we went under 153 today >> thanks for watching. >> "closing bell" starts right now. welcome to "closing bell." i'm morgan brennan in for sara eisen. one of the biggest losers in the dow today on report that is the 737 max fleet may remain grounded until 2020, broader market down more than 1% 59 minutes left of trade we'll tell you everything you need to know today. >> yes, we are, morgan i'm wilfred frost. let's look at when's driving the action weak manufacturing data here in the u.s. fueling concerns and hit stocks. trad