>> put the puddle to the metal on the chinese the euro, if you're worried about a strong dollar, there's the ten-year quickly take a look at the euro. we don't have much time left i'm going to have to say good-bye santoli, you're not here tomorrow >> no. i'm not here tomorrow. >> thank you make sure you join us tomorrow "squawk on the street" is next good thursday morning. i'm carl quintanilla, with david faber and jim creamer on "squawk on the street. in over a year, some good will gestures on trade from both china and the u.s. the president says the fed must cut despite the biggest jump in core cpi in a decade today

jobless claims, lowest since april. the president agreeing to a two-week delay on the tariff pause. >> plus, the ecb is launching a new bond-buying program. could it impact fed decision making until the next week and as the democrats get set to debate tonight, elizabeth warren propose ago sweeping increase in social security benefits financed by taxes on wealth the president delaying the imposition of good will tariffs. all of this coming ahead of planned meetings between the u.s. and china in early october. earlier on squawk, the treasury secretary described the state of trade between those two countries. >> we've had a series of principal level conversations. we have a deputies meeting planned in the next two weeks where the chinese will be coming

here and working on material the vice premier coming here at the beginning of october to meet with ambassador lighthouser and myself we look forward to making progress over the next few weeks. set tariffs could go up, they could go down. he's looking at the 50-year bond potentially next year. >> right look, the president is banking on not just a very big ag purchase, but more than that the chinese telling "the wall street journal" they want to limit this to just trade good luck. the chinese are so misjudging the president. the president is a much harder line than they realize he's not going to cave because they order a lot of soy or pork because they haven't been able to get the swine flu under control. >> although he does seem to be focused on it. talk about the farmers, it's coming and when he didn't, he seemed to get very upset about it, as

well >> he said if you don't come through, we are going up there and -- remember, this last round of tariffs, that was that fabled friday >> he was angry in part because the chinese put tariffs on the imports from the u.s. and they did not follow through with it all. >> i'm thinking that secretary mnuchin represents one side of the white house. the other side of the white house wants to know, look, when are you going to stop secrets? when are you going to stop with what way >> the hawk eats the dove in the end. >> mnuchin said hong kong would be the be part of the discussion, but your point is huawei needs to be >> yeah. just because bolton is gone doesn't mean there aren't hard

lines. the hard liners are saying very specifically you can't delink foreign policy, military issues from trade you just can't that's a pipe dream of the chinese. the chinese are always regarded at face value and our president is regarded as material. i think the chinese are trying to get away with as much as they can. the president is more consistent than people realize. i think the bar is high again. if the chinese do not come through by october 1, i think you're going to see -- he's going to put those tariffs on and he may do it during that grace period >> we're not the ohm game in town >> no. but this swine flu is underestimated and i say that because i know the guys at sowetas. they're trying so hard to solve it and they can't. this is a crisis of huge

proportions of china huge eaters of pork. >> so they need our pork >> they need our pork. so if they don't start ordering our pork, we know they are -- >> you don't seem particularly positive on prospects for the next round of talks. >> no, i'm not >> look, this is not even accept and verify it's literally, you know, you guys have just dropped the ball, the chinese, and i don't think there's anything going on. i say this by the fact that this reprieve, the future jumped really big and then they pulled back entirely. so, no, i just think the chinese better do something and do something fast and not just pork. >> you saw the journal story about them want to go separate from other issues, huawei or hong kong or national security >> they can't. peter navarro will come on to

our network and say the seven sins of what they do >> i heard him talking about them on squawk >> that's the president's view that's the president's view, navarro's view the president's view is not mnuchin's view the treasury secretary is his own man. but i really feel the president thinks these issues are one and the same and i think the chinese think we're idiots, bone heads, even senator warren's comments are not -- i don't hear her trying to save the family farmer. she's trying to tax people who i think have room to be taxed. oh, i said it. >> you're saying the farmers are a subset of the wealthy? >> no. farmers are voting for trump no matter what. the president is not sitting there thinking, well, i need them to put a soy order through to win iowa. the president is going to win iowa his base

the base trouble versus base. >> can there she is, elizabeth warren, talking about her new plan to increase social security benefits by i think $200 >> she's using the realistic wealth for people in the country except if you live in new york city >> right with a 14.8% levee on incomes above $250,000 or $400,000 for a couple in investment income and another, she would increase the cap. so right now your social security tax, your pay is capped at 250,000 which you're paying into social security that would go up, come in at 14.2%. if you're living in a high tax state or city where you are no longer able to deduct your state and local income taxes and this tax burden would be added, i'm not sure what your actual take home would be, but it would be a lot less >> you're going to have to move to tennessee is my suggestion or florida.

for me, i'm going to be soon at the 60% tax level which means i start making money for myself. but i do well so i don't care. the way that we are busting the budget, it is pretty funny that the democrats are far more conscious of the budget than the republicans. >> well, you survived the salt limits, people moving to florida out of high tax states already so maybe you can survey jive more >> yeah. i can survive. >> when you say on this network that you think it's okay to pay more tax, there are people who are angry at you. but i am very lucky. i've done well i'll pay more tax. >> we know where marginal rates have been historically >> there were so many loopholes back then. >> do you know when you say johnny, do you know who that is?

>> johnny unitis >> johnny carson >> his pop culture knowledge is weaker than my friend erin burnett's. look, i think warren versus trump is just the dialogue now and there is a debate. >> she's behind biden in the polls. >> biden is still well ahead of her in the polls >> is he >> yes >> not kidding >> warren is -- i don't know warren is front and center on all the issues that we talk about. >> she retweeted us for a second straight day i think the lead at drudge was wall street: she must be stopped. >> that's what they say to me over and over again. there are people who say, how can you put her on how can you put her on sheegs a senator of the united states of america. >> she's a serious, rigorous

person >> you bet she is. smart as a whip. >> strong characteristic for people who achieve things. >> and you will say she is rigorous she tweets and sends you position papers. she's not calling anyone a bone head, by the way >> despite the fact that you brought this line to the conversation that we're looking at right here, you have a spot spot for her, it seems >> yes >> because because i think she has thought about the people who are doing not well in the country and that that is great. >> can you say yet, would you vote for her >> i don't talk about who i vote for. i've been pretty split who i vote over time if you want to look at my record. actually, right down the middle. sorry. >> it's become a big part of the conversation now >> and it will more so again if, in fact, she becomes front-runner or she is to pick momentum up.

>> becomes but it will play into this larger conversation we're going to have that is ongoing about the changing face of capitalism. >> yes >> it goes back to the business round table and the rise of efg as a real focus for investors. and it's real, i think what is the role of society and what does it -- >> this letter from ceos >> she is at the forefront of asking those kinds of questions. >>. the letter from ceos on gun control. >> wealthel tax on people who make $50 million do you think people who make $50 million will be hurt by that >> it's 2% above 50 million. >> those people do great >> i don't when i get there -- >> they can afford it is what

i'm saying >> they don't feel like they can afford it. >> she came on "mad money" and she revealed a series of things and she said what do you think of them? i said i don't know, they seem reasonable she said it's exactly what reagan wanted. >> 14.8% on investment income if you earn more than $400,000? >> why not >> are restaurants and hotels exempt >> i don't give a darn why is investment income tax lower than the hard working ordinary people. >> some say that is why there has been a divergence in income inequality alternatively, we have a president who is not talking about indexing them to capital gains to inflation >> although not any more >> yesterday he came back out so i'm confused >> nancy pelosi is right down the middle i remember when she was a bomb thrower. she's now the most consensual

tip o'neill like person in the house, in the country. in the country no single payer for her. cvs stock up today why? no single payer. >> larry moistuerlot. >> yes >> when i speak to ceos after the camera is done, they say, listen, what are you hearing about warren >> we've said the same thing >> it's true they don't say what are you hearing about biden. >> nope. >> that matters. she's part of the discussion >> by the way, this conversation right here is now a podcast. you can listen to us in the opening bell hour "squawk on the street." we're going to get stopped trade, jim in a moment don't go away. we're going to do the mad dash

now. jim, are you ready can we do this now >> of course i can do it now are you kidding me >> we'll do it after the break there's a look at futures. >> oracle. i was going to do oracle >> back in a minute. tell him we're flexible. don't worry. my dutch is ok. just ok? (in dutch) tell him we need this merger. (in dutch) it's happening..! just ok is not ok. especially when it comes to your network. at&t is america's best wireless network according to america's biggest test. now with 5g evolution. the first step to 5g. more for your thing. that's our thing.

we're got 13 minutes before we start trading here. oracle reported earnings, also some news ceo mark hurd. what is your take? >> the analyst community is always bias against a company that is nongap13%, 14%, buys back a lot of stock. i think the quarter was fine that is the problem with this company. the quarter is fine. they always find something to pick on. by the way, ellison was back on the call talking about a big win versus work day on mcdonald's. that was the major take away >> that was one of the headlines. >> huge problem. mark hurd is the aggressive, not just front man, but the guy who drives sales we're not sure about what is the matter with mark we wish him well, obviously.

>> taking a leave of absence >> she's brilliant >> has been there for quite some time >> the chairman -- >> he is brilliant >> yeah. >> geez. >> but they've had an unusual organization with these co-ceos >> and i just think hurd is the public face of the company i don't know i think he's one of the reasons why they have a lot of big wins. larry elson is an amazing person >> and any tells in terms of spending >> no, no. you can't get a read ibm, there's these companies that people just don't talk about. intel went from 48 to 53 poem don people don't talk about these

companies. they care about zendesk and z-scale, it's an octo market it's incredible what people care about now. they care about cloud, cloud, cloud. ellison has always tried to inject himself and say we've got a great cloud business but i demand respect for ellison. when you go out to silicon valley, there isn't a person that doesn't think ellison is a genius he's back in his mid 70s but he's in his 40s, as far as i'm concerned. we wish you well >> if you ever say something bad about oracle, hurd hears it and he's in your face. >> let's get in a break here as we count down to the opening bell, we are going to keep a close eye on smile direct. >> selfie generation >> that is not necessarily meaning it's going to be up sharply, but it's going to be

positioned to go above where it's priced. >> everything comeins a box a lot move "squawk on the street" live for you no two patients are the same. predicting the next step for them can be challenging. today we're using the ibm cloud to run new analytics tools that help us better predict and plan a patient's recovery. ♪ ♪ ultimately, it's helping thousands of patients return home. ♪ ♪

return home. ♪ here i go again on my own ♪ goin' down the only road i've ever known ♪ ♪ like a drifter i was-- ♪ born to walk alone! ...barb! you left me hangin' on the high harmony there. if you ride, you get it. geico motorcycle. 15 minutes could save you 15% or more.

smile direct is getting ready rtoing the bell this morning. keep it here

(indistinguishable muttering) that was awful. why are you so good at this? had a coach in high school. really helped me up my game. i had a coach. math. ooh. so, why don't traders have coaches? who says they don't? coach mcadoo! you know, at td ameritrade, we offer free access to coaches and a full education curriculum- just to help you improve your skills. boom! mad skills. education to take your trading to the next level. only with td ameritrade.

you're watching krncnbc's "squawk on the street. there's a lot to cover today there's the china-u.s. moves, these good will gestures we talked about, the president's reaction to that, arguing that the fed didn't say bone head today, i don't think, but he did say the fed needs to cut

>> i think europeans need to be careful. the president is no fan of murkel they could be next if they continue to make it so that the euro is being faced, they ought to be very careful. i think the president is itching for something against them he does not feel the old -- >> you've been saying that for a while. >> oh, no, he's very upset with the germans. so i think that they're playing with fire if they continue to go down this path i don't think you'll call draghi a bone head. he wants our fed chief to do exactly what draghi is doing, just say in step the problem is they have no growth whatsoever. so they have to do something we have some growth. so i think that when we hear all these discussions about where our rates are going down to, remember that when draghi -- draghi is trying to debase the euro hopefully the business gets better i don't know that business is so weak to china. europe is so linked to china

that's one of the reasons why you never hear them doing anything i think the big test case, by the way, is more london. london stock exchange by hong kong london stock exchange rejected it but would the london stock exchange be built by communist chinese. >> the london stock exchange wants to become more of a data provider, but it's interesting and it's the last chance to buy the lse and break the definitive deal and consolidate exchanges >> you see their strategy of farm -- let's say foreign aid, you see there's signs everywhere belton road in english, right in our faces. but i think you have to

recognize that they -- the chinese are so close to europe versus us, we are not part of the equation when it comes to europe because we are not pro europe >> the reaction to draghi at least was brief. i think the entire german curve is back into negative territory. let's get to steve and talk more about what he said >> he said negative rates are a he necessity and he went more into the necessity range there they cut their benchmark rate by another 10 basis points to negative 0.5 they add 20 billion euros of quantitative easing on top of that he said the easing is in response to a lower inflation, weaker economy he said we see persistence of downside risks and muted inflationary pressures, as well. they downgraded the growth outlook. he was asked about the president's tweet, which you

guys were just talking about let me play for you what he said >> the answer is very simple we have a mandate. we pursue price stability and we don't target exchange rates. period >> carl, i don't want to make jimmy angry over there, but there are some people who say if draghi is not targeting the exchange rate, then what does he plan to have happen as a result of more negative interest rates other than the currency weaken carl >> so what happens now we declare them a manipulator, jim? >> it has to do with tariffs look, part of the conversation, you're talking about china with the white house. what have they said? hey, don't forget the germans. don't forget bmw just be aware, draghi, thin ice. thin ice draghi. >> well, he's done, anyway >> that is true.

>> legarde's problem now steve, thanks. talk to you in a little while. steve liesman, let's get to the opening bell, s&p 500500, on the big board, celebrating the -- network at the nasdaq. as we said earlier, the smile direct club, consumer medical technology company celebrating its ipo today. original range projected in at 23 >> this is incredible because this is a company that is valued gigantically it's goes up against invisiline. this is a do it -- part of a subscription economy basically and everybody who has had kids that have been using invisiline, the kids are happy they tend to be instagram-aholics. but this is distranscriptive to the industry

there are orth dontsicodontistsg me right now saying this shouldn't be allowed >> it is kind of do it yourself. >> yeah. >> they take pictures. then they make the molds and then you have a box that spits out every week or whatever it is a new one to address the gaps in your teeth or whatever it might be >> what worries me is why is the market going nuts for this one is it a revulsion? >> is it a stretch to put it in your ulta estee lauder portfolio? >> no, it's not a stretch. i think millennials love straight teeth gen-x, straightener. by the way, you go to europe, they could use this.

united kingdom, holy cow they need -- they -- >> come on it's no longer austin powers smile direct uk would be a killer >> by the way, moving on to ipos that are to come, this will set a tone and if it's a positive one, it can only help even the weak company >> oh, david, you're taking that leap of faith? >> i'm just saying >> great top of market. >> i'm telling you >> top of the world, ma. >> not necessarily i can see you betting warmer to it at 15, 16 billion >> where would that be for uber? >> and when adam gets ahold of you and does the mind melt on you, it would be like where is

that company >> yeah, i guess so. >>. >> we'll see it's going on be interesting two weeks from today, maybe. >> the last time i was with newman, i was with david blain >> you've taekd about that >> two magicians, right? one guy is able to get 40 billion and the other guy is able to put a card in your mouth and know what it is. >>. >> able to lev tate. ose and blain are not of this world. blain says you believe in me more than i believe in me. i said absolutely. blain is incredible. he's out of this world nor is newman. >> we haven't talked a whole lot about cpi today. the biggest jump in 11 years

there is a fed meeting in which people are looking for a cut what in the world is jay powell going to do? >> well, i think that, boy, is he in a hard spot here he does want a little bit 06 inflation. let's not rule that out. i think powell is capable of saying, let's wait, which would be devastating to the stock market >> no cut? do you think no cut next week is possible >> honest to god, you call the guy a bonehead and he cuts that's just a license to call the guy sparky >> call him double bone head and then you get 50 basis points >> you can't with the fed chief. you are insulted daily on twitter. you had a reputation beforehand of being a serious individual.

do you just say i'm going to secede to his bone headedness? he took rates too high that's what -- the president's view is not what the numbers are right now. it's just that the rates should have never been too high versus the rest of the world. i think the president is right the president is right on that >> if that is true, where is the bleed through from those hikes the last couple of years stocks are at a record jobless claims are rock bottom the labor market is tight as a drum >> people feel manufacturing -- >> that's trade, isn't it? >> yeah. if he wants to win the trade war, he needs the fed on his side he says is communist chinese of central planning, we should have central planning it's all for one and one for all and he has a bonehead at the fed who is trying to exercise independence that is where he is coming from. he does not want the chinese to win because the bonehead fed

chief is saying, hey, listen, i know i raised it too much, but the heck with you. >> the last i heard, ear not a centrally planned economy. >> the president wants a little central planning >> you bring on larry kudlow and these other people, they're not going to abdomen describe to yo your viewpoint about central planning >> the president will. we have two central planners we have the president's central plans and then we have senator warren's central plans saying the rich people are paying too little >> that's true they come back to the responsibility of the corporation. >> the margins do get squeezed a little bit, but you're helping overall. >> they have more in common with

each other than they do with nancy pelosi >> goes to reflect the craziness of our political climate right now, i think >> tonight is a private company. i love their clothes i'm trying to look a little more youthful what goes on with them is it's all sustainability >> it fixes you almost >> is that a youthful move >> it fits you now >> i had it tailored perfectly win suit david, you know your house, your apartment? >> excuse me >> your apartment. >> yes >> this is an apartment. and you think senator warren shouldn't tax more i'm wearing an apartment >> i'm taking 210% of that suit right now. >> this is seven times the counted of that k-mart suit you're wearing

i didn't know k smart still made suits. i didn't know k smart was still in business. is that part of the lambert collection >> oh, that is -- this is a nice suit, i think. ge, guys, not doing anything today. 2.5 billion in u.s. dollar aggregate purchase price, 4 ge company bonds. all of this, of course, part of the company's attempts to delever, particularly its industrial leverage target net debt over ebitda and now they are making this tinder for up to 5 billion dollars. >>. >> they got money from baker hughes a lot of people feel oracle

should be delevering faster. >> mark hurd is really important to that company. he wins a lot of business head to head. >> earlier, i misspoke that the people in the uk are able to get smile direct they should get scholarships and some sort of subsidy because they need it more than americans. >> you have no plans to visit london anytime soon. >> love london do you think that they'll -- >> really? >> i mean, you're going with the oldest joke in the book, my friend the cat skills where are you headed >> i'm going to fly over to london boy, my arms are tired look, james bond had great teeth. >> that is true. jim, we haven't talked a lot about this momentum shut this week jpm argues that it's been largely technical so far, but it could be followed by an upturn in the business profit cycle reminiscent of 2016.

are you in this camp >> yi am i am there is a vegund. i want you to watch cater pillar and deere. a guy who does a lot of solid work when it comes to how those respects are doing if those stocks go down and stay down, then people who are buying these stocks are going to get in purpose when they have the earnings look at 3m run isn't that something >> what does that mean >> i think tusis got too negative on stocks, even though he's correct on some of the facts. he has to get more on the stock pit. ge is moving up. 3m is moving up. >> it's not too late for him to declare victory.

>> a lot of that apple is the belief that the apple plus is going to have some great entertainment. >> you're just baiting david now. >> okay. if you say so. >> they can afford it. >> they can. >> they can afford it and over time i would assume they'll spend more and more and get deeper and deeper in and probably have a platform that actually offers you a variety of different concepts. >> it's going to be amazing. they know customers better than anyone we've got to go to bob. >> walmart is near a record high and we should mention unlimited grocery delivery. >> they can that, kroger. >> $98 a year. >> i want that remember, this is the word plan. you let the guy in to stock your refrigerator i would like that. i would like that service. >> take a look at that 25%. >> you don't have to go out at

all. they come right to your refrigerator you don't have to leave your apartment. >> right thank you for reminding that. >> the suit is expensive not because of your apartment. >> i've been happy there i live in this you live in that i live in there. >> you live in that? >> you do actually do live in it never takes his tie off. >> never >> whenever you imagine hicall, watching those of those binge tv shows, he's always wearing that suit. >> absolutely. it's more comfortable than wa j -- pajamas. >> we did hit 3,010. >> we're up and we're very near new highs. the question is how much life is left in this rotation rally we've been talking about with the rotation, it's been going on for a week now. it's longer cyclical stocks. retailers had a great week

up 7%. energy's had a great time. industrial is up 3% or 4%. can it continue? let's look at what's leading and lagging today. we talk about retail banks energy guess what's lagging retail banks and energy. this tells you we're running out of steam industrials on the flat side again, this has been the sort of leadership route in the last five days. where are we let's look at the checklist where we're at and why did this happen why are we getting this rotation we've had trade talk momentum. we've had aggressive central bank action. we set some decent expectations of aggressive central bank action decent economic data and basically the concerns about recessions have receded a little bit. they could come back, of course. what does that all mean? what has this all led to number one, we've seen bond yields lifting that's probably the most important thing. that happened gwennibeginning lt thursday let's go long defensive names, long consumer staples and utilities and rates.

let's short big cyclicals, the big retailers, the industrial names, the bank. that crowded trade has unwound it's healthy for the market to be balanced. we've seen good internals. we've seen low volatility. high pessimism i think that will reverse. this is a good overall scenario for the market here's the problem look at the sa&p 500 now we're back to that old argument it's really pricey. 17.1 times forward earnings right now and that's the way the market looks what's the multiple for the market right now to get this, to keep this up there, you can't just have crowded trades unwinding you can't have a bunch of short covering that's going to run out of steam and may already be running out of steam you need to see some real improvement. that's why i'm hardened by the economic data.

i think it's still pretty good you're going to need to keep at least some decent economic data to see this going. let me move on and talk about the ipos because i know we're going to have the head of smile direct on. we have been upsizing these ipos i wanted to talk about caterpillar. the biggest call of the day is on caterpillar up, down, up, down on trade talk that call by wells fargo saying we've gone far enough and we've talked about what's going on demand likely to decrease off peak conditions in the united states that's an important call that's a fend mentundamental ca. i think that's the most important call of the day. three upside ipos this week. you know about smile direct. we'll be opening very shortly. 19 to 22 here. it's pricing at 23 upsize there how about all this talk about some of the big ones out there look at this, 31 to 35 a few

days ago it's pricing at $39 on the nasdaq today finally tomorrow we're got cloud player this was 10 to 12. it's now 12 to 14 is the price talk we haven't got a final price on that the point here is, carl, ipo business is still very high. back to you. >> absolutely. thank you, bob speaking of which for more on smile direct club, let's go to bertha at the nasdaq. >> carl, it's going to be a very busy morning here with two big ipos both of them upsized. bob was mentioning smile direct. direct to consumer teeth straightening aligners visiline is the big competitor it did price above the range it's going to give it abou in addition to smile direct, also got -- of course invisiline

has suffered it's not been a very being mover. some of the suppliers in the dental market like dentsply and henry schein this is a gene sequencing company that makes technology for gene sequencing. also priced above the range. it's going to have a better than $3.5 billion valuation we're going to have a very busy morning over here. back over to you. >> thank you very much, bertha. today we are remembering the life of legendary oil tycoon t. boone pickens. he died yesterday at the age of 91 we talked about him before the top of the hour. i was reminded of his decision to move his childhood home back to his ranch where he will be buried he wrote about that online earlier this year. but what a life. >> oh, jeez. this man led many lives.

i remember hearing him in 1984 when i was in law school he was a raider. there were people who felt he represented the worst part of capitalism by the end of his life he felt he represented capitalism. he wanted to put people to work, make them energy independent he never lost -- one thing he had from the days i met him, he was one of the funniest ceos just had a grand time. whatever he did, he had a blast. he led his life to the fullest got to love him. >> very much so and was in great physical condition, actually, very late into his 80s as you can see there, that was some time ago. >> that was eight years ago. >> and then led the charge on natural gas and sort of energy independence. >> he had an ad campaign for it but it outurned out he drnidn'td the government

american industry did it when we started doing 18 million barrels a day which is what we're going to be doing in five years, look at that man. he believed and one other person believed. >> not to mention the hundreds of millions of dollars he donated to oklahoma education. >> yes it reminds me of ken who has done so umuch for bucknell. they just support their school how fabulous is that >> t. boone pickens, long friend of our network we're going to miss him. passing away at the age of 91. we'll be right back. tell him we're flexible. don't worry. my dutch is ok. just ok? (in dutch) tell him we need this merger. (in dutch) it's happening..! just ok is not ok. especially when it comes to your network.

at&t is america's best wireless network according to america's biggest test. now with 5g evolution. the first step to 5g. more for your thing. that's our thing. by the way, she's the it wasnext mozart.g day. as usual we were behind schedule. but sophie's enthusiasm cannot be dampened. not even by a run-away donut. we powered through it in our toyota prius. because a star's got to shine,

no matter what. it's unbelievable what you can do in the prius. toyota let's go places. but we're also a cancer fighting, hiv controlling, joint replacing, and depression relieving company. from the day you're born we never stop taking care of you. when i needed to create a better from visitor experience. improve our workflow. attract new customers. that's when fastsigns recommended fleet graphics. yeah, and now business is rolling in. get started at fastsigns.com. i need all the breaks as athat i can get.or, at liberty butchemel... cut. liberty mu... line? cut. liberty mutual customizes your car insurance so you only pay for what you need. cut. liberty m... am i allowed to riff? what if i come out of the water? liberty biberty... cut. we'll dub it.

liberty mutual customizes your car insurance so you only pay for what you need. only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪

for farmers here, this is our life's work. but when a recall happens, perfectly good food goes to waste.

now, we've got away around that. looks good. we're on target. blockchain on the ibm cloud helps pinpoint a problem anywhere from farm to shelf. it's used by some of the biggest retailers everywhere. a nice wedge. so more food ends up on your table, is that daddy's lettuce? yeah. and less food goes to waste. ♪ ♪

paypal you'll see is up big. what was happening at paypal absolutely nothing it's all part of the rotation into regular banks paypal being the best example. now that everything is reversing, you expect to see lots of the bank stocks go down and that money just keeps bouncing around. >> jim, what's on mad tonight? >> i've got two of the hottest companies out there. which is cyber security. a lot of people feel competition has gotten very ripe michael preysman he is a very bright and good man. new store in brooklyn opens. >> clothing? >> yeah, clothing. >> brooklyn has that and a new chick-fil-a opened. >> closed sundays. david, i just wanted to say that this is not from everland, but anytime you want to sublet, i'll

let you have it. >> i want 48.8% of it right now. >> blessed jim, we'll see you tonight ""mad money"" 6:00 p.m when we come back we'll watch these markets. we'll talk more smile direct club as that ipo is in focus with the first trade and an interview with some top executives of the company. don't go away. - did you know that americans that bought gold in 2005 quadrupled their money by 2012? and even now many experts predict the next gold rush is just beginning. so don't wait another day. physical coins are easy to buy and sell

and one of the best ways to protect your life savings financial meltdown. - [narrator] today, the u.s. money reserve announces the immediate release of u.s. government-issued solid gold coins for the incredible price on your screen. these gold american eagles are official gold coins of the united states and are being sold for the price on your screen. - pick up the phone and call america's gold authority, u.s. money reserve. with nearly two decades in business, over a billion dollars in transactions, and more than a half a million clients worldwide, u.s. money reserve is one of the most dependable gold distributors in america. - [narrator] today the u.s. money reserve is releasing official gold american eagle coins at cost for the incredible price on your screen. these government-issued gold coins are official u.s. legal tender made from solid gold mined here in america

and fully backed by the united states government for their gold weight, purity, and content. do not delay, call now to purchase your gold american eagles for the amazing price on your screen. gold is now on sale at prices unseen in years and this year could be one of the greatest gold-buying opportunities of all time! call now while vault inventory remains. as one of the largest u.s. gold coin distributors in the country, the u.s. money reserve has proudly served hundreds of thousands of clients worldwide. don't wait another minute, call now to purchase your american eagle coins at cost for the amazing price on your screen.

good thursday morning. welcome back to "squawk on the street". we're here on post nine of the new york stock exchange. we're getting closer to s&p record highs got to 3,010, but muted reaction right now as we're watching ecb china trade and more >> our road map does start with stocks which are still flirting with record highs. this is president trump delays some china tariffs one question, can the markets keep up the momentum

>> two big ipos make their debut on the nasdaq. we'll bring you their first trades live. >> presidential candidate elizabeth warren with a new proposal to tack the wealthy we have those details coming up. >> markets are mixed as trade tensions appear to ease overnight and again this morning. stocks in fairly positive territory. we're still relatively close to record highs this of course after president trump announced he will be postponing tariffs on china at least at this point by 15 days, or higher tariffs negotiators are set to meet in washington within the coming weeks. u.s. treasury secretary steven mnuchin spoke to cnbc this morning about those talks. >> we've had a series of principle level conversations. we have had a deputy's meeting planned in the next two weeks where the chinese will be coming here and they'll be working on material in advance of the vice premier coming here the beginning of october to meet with the ambassador and myself we look forward to hopefully making progress over the next

few weeks. >> joining us with more, chief investment strategist and wells fargo investment senior global market strategist. jim, let me start with you markets reacting the way you'd expect to this latest news on trade? >> i think so. that's kind of what they've been doing, david any tweet, any good news that goes up and vice versa we might get more of that before we get to the meetings in october there is some other good things going on here i think, not only the good trade news, but the fact that bond yields have shown a propensity to rise again i think shows a big vote of confidence coming from the bond market which is healthy for stocks too even this morning there's still a really close relationship between the direction of that 10-year yield and the direction of the stock market just tick for tick i also think economic surprise indices have picked up they certainly have here in the united states and also emerging world, china and europe.

that kind of fresh upside momentum is starting to cause recession fears to fade a bit. i think it just about the trade news that's got more fundamental support going on. >> the president is focused on some of his tweets on fed rates, on global rates, negative rates, currency exchange. jim, we should mention by the way the german 10 year bond sort of back to where it was before we got the ecb news in terms of a cut there. sovereign yields also seem to be evening out to your point. have we seen the lows do you think in yields in terms of u.s. treasury so far? >> i don't know. that's the million dollar question i kind of think there's, you know, a possibility of that, david, in that as i said, some of the economic data has started to improve here and i think people's attitude about recession is starting to change as well. look at that core inflation rate this morning

cpi went to the highest level this entire recovery, 2.4% it's kind of hard to see a 150 tenure again with some elements of infliation, including wage inflation and if the real data picks up here and across the globe, i kind of think we might be starting on a little change of character not only in bond yields, but also leadership in the stock market >> i understand you're focused fairly closely on what the fed may or may not do coming up. we do expect a bit of a cut. jim there saying he thinks perhaps some of the recession fears have been put on the back burner how are you feeling about the u.s. economy going into this fed meeting? >> sure. so at least on an expectations basis, it's clear now to see that people probably got a little too beared up we were there in the fourth quarter of last year too and the way expectations work is eventually reality starts to outperform the tricky part is unfortunately you do still have a lot of headwind a lot of the pmis, a lot of

small business confidence is low. consumer confidence is starting to rollover. we would be more in the cautious camp you've got yields about 30 or so basis points higher which has been the april and july moves. it's right in line with that we will say at this point it's parole a good time to reign in some ftd stoof the stock exposu look at some of the longer duration. >> jim, you mentioned what rates have been doing. you've got stocks near record. you've got core inflation, claims can powell get away with holding steady next week >> i think that would create a firestorm, carl, if he held steady >> how does he justify it? >> i think that's tough. i think he's in an interesting position because i think the data is pretty good here, particularly in the united states i know there's still manufacturing weakness, but much

of the rest is doing well. even the leadership shift here the last few days towards small caps away from defensive stocks, bond markets seeing better growth, credit spreads have come in i think it's a tough case to make to cut, except we've still got a massive inversion in the yield curve and that in and of itself can create enough fear to his point to freeze up confidence and create a confidence freeze recession. so i think if i was the fed, i'd say we're dropping rates not because for fundamental reasons, but because we're going to try to take that curve inversion out and restore some confidence among the private sector. >> can they do that and just say you better like it because that's all you're going to get for now? >> you know, there's just no need for them to do that i think they'll probably say we're cutting because there are risks to the outlook and this rate cut is warranted. i think they'll probably say we'll remain data dependent. for them to at this point let the cat out of the bag and talked about remaining patient

from this side of things, i don't know, it's preobably a little premature. >> appreciate it thanks to you both. >> thanks. >> we're awaiting two ipos to open at the nasdaq this morning. leslie joins us with an up date on the latest. what a big week, leslie. >> a big week indeed and it's not stopping anytime soon. two ipos at the nasdaq today 10 x genomics and smile club both deals got greater than expected smile direct priced above its range as well. 10 x genomics raked in 400 t$400 million in proceeds while smile direct got $1.3 billion worth of cash smile club is the fifth largest among those listed in the u.s. this year and a banner year for

deals. investors were drawn to the company's top line growth as well as what they believe to be a very large total addressable market for orgt dtho do orthodo. bears are focused on the dentistry world seeking to make the liners even cheaper. they have thei mfies to the business we'll see whether the investor demand from the road show continues today when the stock begins trading, likely to open within the next few hours. behind me people are starting to file in and wait for that first trade. back over you to. >> thanks, leslie. it does look like the excitement again is starting to pick up i know you're going to keep us updated. we're going to speak with executives from the company after that opening trade as well you're going to make sure to stick around for that. >> when we come back, the white house as you know by now taking on e-cigarettes.

we're going to talk to two industry leaders on what potential bans might mean. then later don't miss a first on cnbc interview with ceo harold hamm we'll talk energy complex as we are still holding s&p 3k don't go away. - at southern new hampshire university, we believe in education built for all people. - [woman] snhu was the best experience of my life. - [man] without snhu, i wouldn't be the leader i am today. - [woman] i graduated high school 19 years ago. i still finished. - [man] in the military, you feel that sense of accomplishment. that's what snhu is. - you will march from this arena and say to the world.. i did it. - [woman] you did it. i love you. - [graduate] i love you too.

the administration in d.c. taking aim against the, quote, giant business of vaping that's resulted in the deaths of at least six people. working on a proposal to ban

flavored e-cigs affecting bans like juul. behind this is the cleveland clinic the ceo joins us this morning in a cnbc exclusive thanks for the time today. good to talk to you. >> thank you for having me. >> how serious do you think the white house is and why do you think they are some would argue quick to jump on this with six people now confirmed dead? >> first of all i would like to thank you for bringing this attention to national awareness. vaping is not healthy. it's a growing health care problem. it affects our youth, our most vulnerable population and we're fully supportive of the white house initiative >> do you think it actually happens across the board or exemptions what do you think the policy will look like once it gets closer to it >> i'm not certain what the policy will look like but i do believe this is an important

first step what we would like to see is that this type of initiative spans across our country because of a growing importance of this problem. >> you know, tom, i understand that about a quarter of the nation's high school students started vaping within the last 30 days. that number seems very high and obviously the flavored vapes or the flavored e-cigarettes seem to be the issue here, but if you get rid of the flavor and it still has the nicotine, haven't you already addicted a new generation of potential e-cigarette smokers? is that really the answer, just getting rid of the flavors >> certainly just getting rid of the flavor is not a complete answer, but what will affect getting rid of the flavor will reduce the consumption among those who are most vulnerable. those are the children a teenage population where vaping of flavored cigarettes is immensely popular. and also very, very damaging

certainly there is no type of vaping that is good for a person, so i certainly agree with you that one should strive to eliminate vaping and nicotine consumption all together. >> what do you say to smokers who are still smoking combustible cigarettes or thinking of trying vaping or maybe they have tried it the fralavors keep them to it ad they say if you take my flavors away, i'm going back to my original pack? >> first of all, vaping is not healthy. the concentration of nicotine in vaping devices is much, much higher than it is in cigarettes. we will definitely not advocate vaping in any form we have spent decades fighting against nicotine and cigarette smoking and this new technologies that are being used and the new devices are putting us really at risk to eliminate

all the progress that we have accomplished over these decades of intense public campaign >> tom, stay with us just for a moment a little bit of market action. we got a spike in some equity prices >> the reason why we did see that move higher is because of headlines coming out of bloomberg saying that the trump administration may be looking into or weighing a possible interim trade deal with china that would delay or put off some of these tariffs you may recall that the trump administration has already put a two-week delay to a hike in certain tariffs asd will from the administration during these negotiations that is what sent the stock market, specifically the dowas0 particular headlines came out. they ran from about 120 points they pulled back a little but that is the reason you're seeing it move higher we'll continue to monitor this,

but trade is the reason why the markets move higher. i'll send these back over to you. >> i'm looking at the lead here out of bloomberg five people sourced. they say the administration's discussing delaying and even rolling back some u.s. tariffs for the first time i think that's what's original here. >> what's interesting about this too is over the course of the past several months and even the last couple of years, the amount of movement a market has seen based upon trade headlines has become somewhat more tight or more muted when you do have a positive development like this, if it's worth 100 points on the dow, it kind of gives you an idea that perhaps there is a little bit of sket ti simp skepticism whether whether or not this is seen as progress between the u.s. and china. >> stay with us, dom absorbed quickly by the algos and sometimes prices go back to where they were prior to the

headline itself. the rollback thing, david, i don't know if you find that interesting or not. >> like a lot of people, you don't want to go off a headline. an interim deal, i'm not quite sure what that means interim to what? potential rollback in existing tariffs as opposed to just a delay in going up is certainly a potentially significant olive branch we'll see. we heard from secretary mnuchin this morning on squawk box he has high hopes of what will take place a couple years from now. jim cramer says others in the administration seem to be negative on the prospects that anything will be done in the near term. >> the piece goes on and it's very short, but the piece does say this would be in exchange for commitments on ag which has been a big part of the discussion obviously for weeks, but also commitments on intellectual property. if that came to fruition in any concrete way, the market might pay attention to that. >> perhaps that is certainly a big point.

just get this all started from the beginning which i think many executives may not have been in favor of tariffs or certainly in favor of some kind of, you know, renewed interest in looking at the intellectual property, making that better for everyone. i think most people agree that has been a tilted relationship >> yeah. that's been a key area we heard the seven points from mr. navorro a couple days ago when he was a guest on "squawk box" all the way down the list to fentanyl and it's continued exporting from china into the u.s. and obviously with egregious outcomes unfortunately for so many people as dom said, we're going to move on these headlines this is a bloomberg story. we'll see. this is sort of all you can really do at this point because so much still remains opaque and the talks have yet to take place. they're laying the groundwork for the talks, so you can imagine there's back and forth and perhaps what this reporting

is coming from. >> we have moved a little bit less severely on many of these trade headlines, but this is a very noticeable move you can see that sharp move higher it's good for about 121 points right now. >> s&p 3,015 is 10 points shy of the all-time record at 3,027 you've got the vix below 15. all sorts of different class reacting to i guess if you were going to extend this and believe in it, you could write a headline later today that argues that you're going to see a pause in the trade war we're not there yet, but that's what some were beginning to speculate about. >> one of the places we're looking is crude oil there are a lot of dynamics that played global economically with regard to demand and the supply picture, but crude oil prices also certainly a focus there if there is a detente in terms of

trade deal if there is progress, you could see some of the more economic sense of the commodities market. perhaps copper prices, perhaps oil prices we're also keeping a close eye on what's happening. we've been speaking so much about this idea that there has been this kind of observed rotation out of certain parts of the market into others, higher valued asset classes into more value oriented ones. whether or not these particular headlines do kind of shift the calculus or the thesis bliehind those thought processes. i've also been watching closely between trade headlines and those companies seen as insulated. those stocks are perhaps outperforming short term, but will they continue that today based upon these headlines and any other developments that may come out of this again, the dow industrials did move up from a 20 point gain to 120 points as courtney pointed out, we're pretty much hovering there right

now. >> we talked to mnuchin this morning. the president has been tweeting a lot but not about this particular angle dow is up 130. our apologizes to tom of the cleveland clinic thanks to him. we're back after a short break sd at the start of every race. every new job. and attempt to parallel park. (electrical current buzzing) each new draft of every novel. (typing clicks) the finishing touch on every masterpiece. (newborn cries) it is humanity's official two-word war cry. words that move us all forward. the same two words that capital group believes have the power to improve lives. and that, for over 85 years, have inspired us to help people achieve their financial goals. talk to your advisor or consultant for investment risks and information.

talk to your advisor or consultant liberty mutual customizes your car insurance, hmm. exactly. so you only pay for what you need. nice. but, uh... what's up with your... partner? not again. limu that's your reflection. only pay for what you need. ♪ liberty, liberty, liberty, liberty ♪

let's get back to the cleveland clinic ceo tom, sorry for that. i did want to ask you one last thing, though, regarding vaping. so much mystery surrounding these illnesses that we've seen around the country does the clinic have a better view of what that might be about, what the cause may be have you seen patients yourself? >> we have seen patients and what is really, really alarming here in the cleveland clinic we have seen young patients who required a long stay in intensive care unit because of the severity of their lung disease. it is really too early to tell what is exactly causing it, but what we do know is that all of those cases were related to the relatively recent onset of vaping so it is definitely a harmful habit. our lungs are meant to breathe in clean air

anything that is not clean air is harmful for lungs vaping is a very, very harmful habit. >> and at this point you believe it is a lung-related disease, because so much of the research lately has looked at cardio rather than pulmonary illnesses. >> it is really important to emphasize the harmful effects of vaping are not limited only to lungs. nicotine addiction in particular in teenage patients can affect brain development with the long term consequences such as impaired cognitive abilities as well as memory impairments so these harmful habits extend farther from lung disease alone. >> tom, our thanks it's a huge story around the country right now. appreciate that very much. of the cleveland clinic. we continue our discussion on vaping joining us is tony, the

executive director of vaping technology which represents over 800 companies in that space. thanks for your time. >> i appreciate the opportunity to be here. >> you guys are under some fire. what does the industry do now? >> well, i think the bottom line is we want to make sure that we speak clearly and that our government and our public health officials speak clearly about what's really going on the fire is being caused by what you were just referring to as these illnesses and disease. that's what's really attracting a lot of attention what you didn't hear from the former speaker but you did hear from the fda is that the root e illicit black market thce not products we immediately have told everybody that nobody should buy products off of the street, but we have a big concern which is that without a clear message coming out from our public health officials, they're conflating all vaping or the use of e-integrities with nicotine with street bought black market thc products

that's dangerous not to send the appropriate warning, especially in this context. >> i've seen -- we have seen a number of reports that indicate while certainly that may be one of the culprits, it's not clear that is the only culprit i mean, to our last guest's point and others, i don't know if you'd agree, we don't know yet what is causing some of these illnesses, do we >> we don't know full details, but we do know enough according to the new york department of health and the fda which put out clear warnings which said that it's the thc products that people should stop vaping. that was the fda statement they put out on friday evening. as far as the new york department of health goes, they did their findings and their research and they put out their statement last week which said that what they found was this vitamin e acetate oil which is cut into thc wax and is used to cut it to make it more soluable,

more vapable yes, you are correct, we don't know the full answer yet, but we have a clear indication as to where they are going while we reserve judgment, if you don't properly warn, then you're sending the wrong message. if you don't tell people about the right warning, they're going to continue to perhaps use that product. what's really important is we do have a large industries that's just been threatened by this ban on flavors the confluence of flavored bans and what's been happening recently, there is no connection a boston public health professor just came out and said there is no link between e-cigarette flavors and the stories we've been hearing in the press recently bp because yo recently it is important to know how big this market is and what does it mean to public health. the fact of the matter is we did a study and there are almost

14,000 vapor companies in the united states. almost 12,000 are retail vape shops and they sell a wide diversity of flavored vapor products to adult smokers. you take those off the market and what will happen is those shops will shut down we're talking about a total economic impact of 166,000 jobs, 70,000 of which are direct retail jobs. take those products out of the market, there is no business model for people selling a tobacco flavor the real harm here is the fact that those consumers that are buying those products from them will have two options. both bad and worse the first option is that they go back to smoking. that's not what we're saying yes what the fda said in open court in june. what they said in court is that dramatically removing vapor products from the market will lead to an increase in smoking the worst case is that it leads to more black market problems, because that is what the american consumers have said they'll go to smoking or go back

to the black market. that's been affirmed by public health experts that wrote a letter to the fda, attorney general tom miller from the state of iowa who submitted findings about how they have to rethink their policy. >> we're all in agreement this does threaten the business of e-cigarettes that is the problem and that's what we're trying to get at. what the white house is trying to say is dthis is a public health problem and they're very concerned with the flavors being attracted to teens if a quarter of the country's high school skuntudents have admitted to vaping in the last 30 days, that's the problem they're trying to address. what do you say to that? it's hard to argue a mango flavor is not attractive to a teen. >> what we addressed is what we talked about the last time i was on this show we implemented our marketing standards in 2017, gave them to commissioner gottlieb in 2018, encouraged them to enforce

aggressively on marketing issues because we think it is important. but people get really confused when they talk about flavors number one, you need to understand and what science shows us is that fruit flavors, beverage flavors are helping adult smokers quit adultsmokers are not intereste in tobacco because that's what they're trying to move away from and that is why they rely on a wide variety of flavors. we have to be able to walk and chew gum at the same time in this country and i believe we can do that. >> it's funny you say that because i'm not sure the smokers need bubble gum. quitting smoking is one thing but do you really need flavor? where is the line? >> that's a great question there are a number of things we can do in terms of regulating the way flavors are marketed that's what we're talking about. you control the packaging, the labeling, you can control what products are called. simply ripping them out of the marketplace serves no nobody

ultimately you and i know. i'm a father with three teens. i know that teen dos stupid things teens experiment all the time. the numbers we see coming from the cdc and fda generally show past 30 day use. have you used a product, have you experimented once in the past 30 days it does not mean it's not an issue. we have to be able to address the problem without taking this tool away from adult smokers who are desperately trying to quit. >> that is the heart of the debate, no doubt tony, thank you very much. vapor technology association we'll keep our eye on developments out of the white house. >> we'll send it over to sue herera she has a cnbc news update. >> here's what's happening at this hour. british prime minister boris johnson denying lying to queen elizabeth when advising her to suspend parliament for a five-week period he made the comment while visiting a london dock yard to announce a new ship building program. >> absolutely not.

and indeed as i say, the high court in england plainly agrees with us, but the supreme court will have to decide. we need a queen speech we need to do all sorts of things at a national level. >> the israeli military says its jets struck targets in the gaza strip. video shot late last night shows explosions illuminating the night sky. the military says it targeted military compounds in the northe northe northern gaza strip. singing a song in hong tongue that highlights the creative of demonstrate ares on. the song is "glory to hong kong" and has been adopted as their anthem more protests expected this week naets t that's the update for this hour. >> thank you oil tycoon and billionaire t. boone pickens has died at the age of 91.

he was a wildcatter, a corporate raider, a hedge fund founder and a billionaire philanthropist joining us is fellow oil man harold hamm. chairman and ceo of continental resources. i certainly want to spend on your reminisces on mr. pickens, but i want to talk oil with you if i could at the outset i'm sure boone would approve we're talking these days about potentially getting to what? a narrative of let's call it 15 plus million barrels per day of u.s. supply. in your opinion as one of the pioneers of this industry certainly in terms of shale and fracking, do you think that's possible >> i do. the growth projectile has slowed down the last year which it needed to. we were oversupplying the market one thing you can't do is get ahead of the market. we want to meet demand, but

getting ahead of it is not a good thing and we've seen the results of that. and so the public market has told us that's not what they're going to pay for it's a lot of growth we don't need oil companies have readjusted the percentage of growth that they have in the companies and we certainly have at continental as well. we intend to meet demand, but not exceed it. anyway, that's where it's at can we get to those numbers in the future we've got a great deal of oil here in america, thank goodness. it's possible we can get to 15, 16 barrels a day eventually. >> are well efficiency seies one oil side still increasing or start to decline

>> we're not close to decline but increases, maybe we're getting toward the top of the learning curve on individual wells. the bulk end is still growing. we're getting to the top of that curve maybe. there's still a lot of room for growth here in america's oil fields. >> the companies themselves and the stocks, we're taking a look at what we have in continental resources. there's continued concern about the ability of the industry to refinance what is over $100 billion worth of debt coming due over the next three years. is that a justified concern? >> i don't believe it is on a macro scale. companies are able to handle the debt that they have.

we certainly are here at continental. we've been paying down debt. the first six months of this year our earnings are about $500 million. excess free cash flow. and so we're where it needs to be both the stock buybacks and debt reduction. so most companies are able to handle it like continental is. >> harrell, if we can move to t. boone pickens and sharing some sort of memories of what he did for the world of business and energy of course, he was quite a character and we've been talking quite a lot about personal stories and memories, but he did an awful lot for the energy world, particularly recently in natural gas. what do you think his biggest legacy will be >> well, obviously it's one of the reasons that i got in this business to start with and that is the generosity of people within oil and gas. boone pickens exemplifies that

as much as anybody he was somebody that made money, made big money, and gave back. boone's a great oklahoman. i enjoyed my time with him i went out just last year and sat down and had dinner with him one evening. he and i talked about, you know, our career and what it meant to us and also just fun stuff hunting and all those things we enjoy so much. i'll miss boone. he as i said was a great oklahoman. he created a legacy and extended a legacy of generosity within our industry and that's certainly important. yes, he was a maverick in a lot of ways. a corporate raider made a lot of money. forced companies to achieve

greater efficiencies at a certain time and then of course he was a commodity trader deluxe. >> what are your thoughts, harold, when it comes to what's going on right now with u.s. policy and trade with china and the impact on the broader energy patch? i mean, certainly that's an area that we need to focus on and pay attention to the policy changes as we get these headlines this morning that perhaps there may be some kind of a potential rollback or some kind of a resolution >> i think a resolution will happen i think we just need to make sure that we're concentrating just on trade and don't try to correct all the social issues in china. they're their own country and they're going to do things their way. so getting over to intellectual property and all those sorts of things, maybe we just need to stay exactly on track with trade

and in our industry we're patriots we're not out there campaigning and whining about what's going on we'd like to see it corrected sooner than later. the administration is working very hard to make that happen. and i believe it will happen it will be good for basically world trade as it occurs you have to remove the road blocks and this administration is doing exactly that. >> mr. hamm, always appreciate you taking some time for us. thank you. >> thank you it's good to be with you >> harold hamm, ceo of continental resources. >> as we remember t. boone pickens passing away at the age of 91. we'll be right back. [upbeat action music] ♪

(pilot) we're going to be on the tarmac for another 45 minutes or so. for farmers here, this is our life's work. but when a recall happens, perfectly good food goes to waste. now, we've got away around that. looks good. we're on target. blockchain on the ibm cloud helps pinpoint a problem anywhere from farm to shelf. it's used by some of the biggest retailers everywhere. a nice wedge. so more food ends up on your table, is that daddy's lettuce? yeah. and less food goes to waste. ♪ ♪

the wait for the next big market bounce could be over. more "squawk on the street" is coming up. johnson & johnson is a baby company. but we're also a company that controls hiv, fights cancer, repairs shattered bones, relieves depression, restores heart rhythms, helps you back from strokes, and keeps you healthy your whole life. ever stop helpstaking care of you.kes,

walmart is expanding the unlimited congre unlimited service to -- for $98 a year or $12.95 a month, shoppers can subscribe to receive unlimited grocery deliveries to their homes. this is not the one that goes directly into your fridge we talked about before. that's a separate pilot. this one you do have to accept it at the door shares are higher on this this morning you can see slightly but still a nice chart year to date. up about 25% this may seem like a no brainer. pay $98. it's less than amazon prime to get your groceries delivered, but online grocery delivery has been a really challenging area for any one retailer to really master i think consumers are still a little funny about somebody else picking out their meat and their

fruits they have to coordinate being there for the refrigerated groceries. the market share in the u.s. is still relatively small something about 5% is the estimate we see. it seems like a great idea, but it may take some time for this to catch on. still, i think the market is encouraged by continuing dw developments for grocery. >> what's the delivery time on this >> you can pick your delivery window and see what's available. largely it is the same day of course, if you do it early enough walmart has something like 45 on -- 45,000 personal shoppers which is another problem some people have said the aisles are getting a little crowded with the walmart personal shoppers for the people that are going into the store but walmart says if you're buying your groceries from us, we don't care if you want to come in or you want us to deliver it for you. >> about half of the market will get this >> by the end of the year.

walmart has 3,400 stores or so it's going to be in about 1,400. but walmart had also said when it was talking about its next day delivery that was going to take some time to roll out by the end of the year and they were way ahead of their projections already for the areas of the countries that get it perhaps this could be something faster than what they've projected at this point. but we have other retail news to talk about moving on to under armour, earlier i sat down with founder and ceo and i asked the company and him how he's feeling about the effects of china tariffs because we've seen new tariffs come in since the company last reported last year under armour produced about 18% of its goods in china with a goal to get that down to about 7% by the year 2023. here is what the coo had to say about how the company is handling the higher costs of tariffs today. >> in large part i think credit to our operations team for actually making china as not a place we're going to feel that great of an effect. >> it's great. with the current tariffs we're

actually not being affected very much at all. we only have about 10% of what comes to the u.s. from china the current state we're okay. >> meaning you don't have to raise prices you figured out other mitigation tactics? >> we have and going from defense to offense, we feel this is covering our area right now. >> which is interesting at a time when the company is working on pulling back its promotions and going more with fuller priced items you can imagine as they're already pulling back seeing pain from that. it's hard to put your finger on it but in the last quarter north american sales were down 3%. traffic to the stores were down but once a shopper got into the store they liked what they saw and conversion was up. still they've been managing through these tariffs fairly well and lowering that exposure over time. it was an interesting conversation and we had to ask him what he thinks about this california law for ncaa athletes or opening the door. four years from now to allow individual athletes to accept

compensation right now under armour does sponsor ucla and berkeley and mr. plank sort of kept the door open and said we really love our athletes, we want to make sure they're fairly compensated for the value they add to these institutions and we're not quite sure that's the case right now i thought that was a very interesting thought on that new potential rule although others point to it and say if an athlete is in the ncaa and accepts outside compensation, they're going to be ineligible anyway so it's a moot point. >> some argue it's a matter of time before those athletes who work so hard for the schools get some liberties. >> those big schools bring in so much money from those athletic programs. >> it is a full-time job. >> absolutely. >> seven days a week every single day off-season, in season. it doesn't matter. >> absolutely. >> that was great stuff this morning as we watch plank back in action. meantime, the third democratic debate kicking off tonight with elizabeth warren looking to keep momentum john harwood joins us live from

houston with more. good morning, john. >> good morning, carl. this is a fascinating development. elizabeth warren has set the pace on policy proposals in the democratic race and she's been moving up behind joe biden, moving up steadily for several months this is a proposal she has made on social security remember the context for the social security debate programs set to become insolvent in 2035 as baby boomers retire most of the conversation has been about raising taxes and curbing benefits, though recently democrats have talked about higher benefits for the bottom end elizabeth warren is now proposing a $200 monthly increase for everyone current and future beneficiaries how would she pay for that that's a very large commitment of cash. she would impose a new payroll tax on incomes above 250,000nd right now incomes are capped for social security taxation around

$130,000 if you are over 250, we're going to impose a payroll tax split eventually been employer and employee in addition to that, she would impose a 14.8% tax on net investment income income for pe with incomes over $250,000 how much would that income -- how much would the two tax provisions raise a ton of money, and you can tell it because mark san deestimated not only does it worsen the problem of solvency, it extends it by 19 years interesting way to try to get initiative into the debate expect to hear discussion of this subject >> market finely attuned to what will be a blistering campaign the next year. we'll check in in a bit. we're switching to eamon javers >> that's right. administration officials are pouring cold water on the

bloomberg report we told you about a few minutes ago. bloomberg reported that administration officials were apparently discussing a limited trade deal with china in which they would lower some tariffs in exchange for agreements on ip and other items. i asked if that report was true. the official texted me back two words, absolutely not. officials keen to emphasize the president is not giving up his leverage going into that deputy's level meeting next week we expect with lower level officials, discussing the potential trade deal next week, leading up to a senior level meeting in the month or october. at this point for that report, official texting me absolutely not true >> that's fairly definitive, eamon. we talked about the headlines from bloomberg, trying to understand what interim even

meant. i guess we don't have to worry about that any more, do we >> in washington, you get denial, denial this is just a denial. bloomberg reported there were discussions among administration officials internally, not that this was offered to the chinese. that's a very preliminary step to discuss a preliminary deal internally a lot of things get white boarded. at what level is this true this official saying absolutely not true bottom line, they want to put the ka babash on the story. >> we get a couple weeks away from talks, i assume we have to brace for more of these reports, push backs as both sides want to enter talks with leverage. >> there are a lot of participants on both sides of this, particularly the u.s. side, there are people with different views of this, who are participating in it. you might get leaks coming from one faction or the other going into it, as each side sort of jockeys for ideological

supremacy and momentum internally inside the white house as well as with chinese. there's a lot of moving parts, we're going to see a lot of this going forward. >> definitive market move. the move is higher on the initial report we stayed there a moment eamon as you came on, told us the official said absolutely not, we lost all gains, gotten right back to where we were before that report >> there you are. >> thank you very much for being here and giving us that update appreciate it. time for the etf spotlight, looking at the banks kbe erasing most earlier losses from today's session, up almost 6% this week when it comes to big names, bank of america among laggards, goldman, sachs is a bright spot. >> all right we have some reports, some denial, denials, opposed to nondenial denials and a market

not doing much of anything more "squawk on the street" after this i can. the two words whispered at the start of every race. every new job. and attempt to parallel park. (electrical current buzzing) each new draft of every novel. (typing clicks) the finishing touch on every masterpiece. (newborn cries)

it is humanity's official two-word war cry. words that move us all forward. the same two words that capital group believes have the power to improve lives. and that, for over 85 years, have inspired us to help people achieve their financial goals. talk to your advisor or consultant for investment risks and information. talk to your advisor or consultant when didwhen i needed ton? jumpstart sales. build attendance for an event. help people find their way. fastsigns designed new directional signage. ...and got them back on track. get started at fastsigns.com.

welcome back to "squawk on the street". i'm dominic chu. financials now a key focus, interest rates a big part of the story. keep an eye on insurance companies out there like progressive, everybody else in terms of overall insurance side of things, and watch banks, specifically regional banks like m and t and bank of america, jpmorgan, all a key focus, carl, as interest rates stay in focus. back over to you guys. >> been around the block and back, hanging onto 3 k on the s&p. some executives from smile direct club join us after they have their first day of trade as a public company ne has somethin. but in a world full of talking, shouldn't somebody be listening? so. let's talk. we are edward jones. with one financial advisor per office,

we're built for hearing what's important to you. one to one. edward jones. it's time for investing to feel individual. experience the style, craftsmanship, and technology that have made the rx the leading luxury suv of all time. lease the 2019 rx 350 for $399 a month for 36 months. experience amazing at your lexus dealer. doprevagen is the number oneild mempharmacist-recommendeding? for $399 a month for 36 months. memory support brand. you can find it in the vitamin aisle in stores everywhere. prevagen. healthier brain. better life. (classical music playing throughout)

should always be working harder. that's why your cash automatically goes into a money market fund when you open a new account. just another reminder of the value you'll find at fidelity. open an account today. of the value you'll find at fidelity. liberty mutual customizes your car insurance, hmm. exactly. so you only pay for what you need. nice. but, uh... what's up with your... partner? not again. limu that's your reflection. only pay for what you need. ♪ liberty, liberty, liberty, liberty ♪ through the at&t network, edge-to-edge intelligence gives you the power to see every corner of your growing business. from using feedback to innovate... to introducing products faster... to managing website inventory... and network bandwidth. giving you a nice big edge over your competition.

that's the power of edge-to-edge intelligence. smile direct headquarters in nashville, tennessee 11:00 a.m. on wall street. "squawk alley" is live ♪