no indication that's in the offering, but he praised the man even as he criticized the country and system, carl. >> after mentioning dumping forced transfer, intellectual property theft, and trade secrets on a grand scale, not to mention the concrete example of micron, does seem like a bit of a back handed compliment >> yes absolutely but complimenting the individual leader this is a president that views all these things as resolvable one on one, if he can get into a room and negotiate with figures around the world, the president feels like he can cut a deal you get the sense he is leaving a little wiggle room open for the president of china to come to the table like i say, whether that's going to happen, unclear he did go through the bill of accusations against the chinese government as you layout in a detailed way and comprehensive way. >> eamon javers, outside with those familiar flags at u.n.

headquarters thanks as always good morning, welcome to "squawk alley. it is 11:00 a.m. at the united nations headquarters in new york 11:00 a.m. on wall street, and "squawk alley" is live ♪ ♪ ♪ good tuesday morning welcome to "squawk alley." i am carl quintanilla with morgan brennan and jon fortt at post nine of the new york stock exchange >> we're going to begin with wework founder adam newman has started talks with board directors and investors on his future with the company. this comes after "vanity fair" says he met with jamie dimon how

to get the ipo back on track joining us to discuss the latest in that saga, good morning to you both stephanie, i'll start with you what do you think? is adam neumann poised to leave the company, does the board have the ability to make it happen? >> there's a lot of stuff in play now i think adam neumann needs to think of what's best for him and the company and other shareholders i suspect that in addition to talking to board members, he probably needs to be doing some consultation with his family, with his closest advisers. the challenge adam faces now i suspect is like a lot of fallen founders, he is finding himself with not a lot of friends to turn to. it is clear from news coverage coming out that former employees are starting to reveal things about what's happening inside the company, big supporters are

falling by the wayside i think there's a real lesson for founders about the way to comfort themselves as they build their companies. when things get rough, you need friends. it seems like adam's friends are falling by the wayside. >> we talk a lot about what it means from an investor standpoint, i can't help but think this is probably weighing on blou east aemployees and folr within the company as well >> absolutely. i think there are parallels to the uber situation and down fall of travis kalanick clearly it had a big impact on employees at the time that was going on at uber this is one of the kinds of messy by-products of having these visionary founders yes, they're able to, you know, harness all of this energy and momentum for their companies, including among their blemployee base, but when they fall and they pile up and you see through the cracks, i think there's also a lot of fallout with the

employee base. we're definitely starting to see that one of the interesting things is figuring out how much is an adam neumann and how much is a wework problem. >> i may argue this is softbank chickens coming home to roost. they encourage crazy founders with outlandish ideas, trying to grow like gang busters at all costs in this era. we see it at wework, saw it at uber there's a sense that this concept is hitting a wall of some sort. i don't see how it plays out in a way that's great for the likes of softbank either way if you replace neumann, don't you stick a shiv in the growth story, if you don't, you have to mark down the investment, right? >> i think all these things are happening. certainly every portfolio company in vision fund portfolio

that follows this pattern of the visionary founder, these are all going to get scrutinized heavily. there are companies in the softbank vision portfolio that don't follow this pattern. i think of an arm, for example that's not a company, it is tied to the vision, but that's a very different company than an use or wework >> and already public. >> and already public. nvidia is another. softbank has made investments that feel more run of the mill, but you're right, jon. there will be assessment of the founder visionary investment that softbank has made, and i think everyone, including people at that company will be going through the portfolios. >> i'm looking at the list uber is the vision's largest, followed by arm and nvidia, doordash, sofi, slack, they're not all founder stories, that's for sure. >> no.

and stewart butterfield is the corollary, opposite to adam neumann or travis kalanick story. you know, i don't want to get too far ahead of myself, but i think that someone like stewart butterfield comported himself in a way that's visionary and business like, and there's proof you can be both. >> turning to netflix -- >> i was going to say he hasn't hit pot in the cereal box at least. >> okay. turning to netflix, that's going negative for the year, more competitors rush into that space. the cover story on netherlands that covers the bet on original content, women that are leading the charge tell us about it >> it is interesting obviously we have seen netflix go through pivots in the past, they have been technological pivots, move to streaming is the biggest one probably

now netflix is finding itself in a very different place where content is king. you have all of the other streaming services coming out. a lot of them priced at lower price points than netflix is offering it finds itself having to compete on content and part of its strategy is it hired on diverse group of people to create content for everyone on a global level. >> stephanie, netflix has gone negative for the year, gave up a 46% gain folks come on, talk about competitors, the fact that they are going into the biggest battle, the race for eyeballs, keeping subscribers. is it overdone when you see 46% reversal >> i think 46% reversal feels like a big drop. but i'll point to something from the cover story, ted sarandos says we started as a tech company but have become a media,

entertainment company. if you put it out there that you're a media, entertainment company, be prepared to be valued like a media, entertainment company as opposed to being valued as a tech company. the way they're operating, spending, putting their energies feels more like a content company than tech company. >> seems to me something fundamental about netflix is about to be tested and that's how much value can they extract from the data. i feel they sold this idea that got so much data on consumer taste, what they want to see, they can develop content for a better price, targeting a specific demographic that will keep them on the platform. disney doesn't have that data, apple doesn't have that data if they steal netflix customers, does that disprove a big part of netflix's tech thesis? >> i think this is definitely going to be tested in coming years. one point to keep in mind, even though netflix has this advantage, other players don't have the data, both because they

haven't had the time to invest in it and build it out, maybe don't have the audience that would help to populate that data, but they will catch up not only is this going to be tested now, how valuable, is this really netflix, how valuable to other players and is it a competitive advantage i don't think it will be for long >> this goes back to the conversation we have been having a couple years what would you rather be, content player with the brand and needs data or the data company, phone company in some cases who wants to be a content player and needs a brand, right? who's got the biggest ask? >> the classic content versus distribution question. you know, it is very hard to use data to create the marvel cinematic universe i will always bet on a great content creator over artificial intelligence and data any day of the week. >> finally to another faang name, facebook, acquiring

startup control labs wi >> i have an interesting theory. i think facebook should embrace this acquisition, position it as tech for good. it would be an incredible pr move there are already scientists that are developing neuro technologies that enable people that aren't able to speak to use their brain waves to communicate, tell people what they're thinking, to use this technology for good. i think some examples from the company are that they're using an arm band to help with muscle control and things like that i think if facebook wants to push into the acquisition, they could use a pr win this is a real opportunity to go out and use it as tech for good platform. >> even though they get larger trust us, we're going to be good now, but we're larger. >> they are larger, but if they lead with something, instead of

saying this is mind control, if they position this as here's how we can give voice to the voiceless, here's how we give movement to people who can't move, i think it could be a win for them >> in a way, it links indirectly to artificial intelligence and what you need to control an ai environment, but does this also show that facebook is plowing ahead with smaller acquisitions, despite the antitrust scrutiny they're under? >> they have to keep innovating, just because they're under scrutiny and getting fined and hit from different sides, they have to keep innovating. how have they innovated the last few years? they made acquisitions i think this is not that surprising >> what do you think it signals about the future of facebook and direction mark zuckerberg is looking to go? >> i mean, i would expect them to do a lot more on the payment side, private messaging, in that area

they still haven't exactly shown us how they're going to monetize the new direction they're going in the neural interface stuff is something that a lot of different people are doing, elon musk is invested in this they have to show that they're making some progress they've been at it a few years, it is not an entirely new area i think they have to innovate a cross -- across a lot of areas, but this isn't it yet. >> thanks for joining us today >> thank you when we come back, california cracking down on vaping, launching a probe into juul as the nationwide death toll and vaping related deaths reaches nine dow has come well off the gh up 32 points when did you see the sign?

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micron produces memory chips used in countless electronics. to advance the chinese government's five year economic plan, a company owned by the chinese state allegedly stole micron's designs valued at up to $8.7 billion soon, the chinese company obtains patents for nearly an identical product, and micron was banned from selling its own goods in china

>> that is president trump last hour saying china got a patent on stolen micron technology. shares of micron falling nearly 2% this morning, on pace for its worst day since august micron ceo is going to be joining "squawk on the street" friday morning, guys part of the carrot and stick approach that the president seemed to have talking about china, what has happened since china was admitted into the wto, and what hasn't happened, kind of personally complimentary towards president xi, calling him a good leader, but outlining what hasn't changed and what needs to >> the u.s. did indict chinese and taiwan firms for targeting micron and these practices november last year this has been a case, and micron specifically has been out in the news because of these investigations, so it's certainly moving the stock today. but we've known this type of

probe was under way. >> yeah. worst day for micron in almost a month or so. federal prosecutors in california conducting a criminal probe into juul this morning rahel solomon has more. >> this news the latest in regulatory head winds for the company as teen vaping use surges this month alone, a bipartisan group of lawmakers urged the fda to immediately pull juul and similar products from store shelves, the fda warned juul over marketing products as safer than traditional cigarettes, and requested documents within 30 days of the letter, and the white house announced plans to remove all e cigarettes from the market until the fda reviews them walmart announced friday it would stop selling e cigarettes in u.s. stores but juul is sold in stores like 7-eleven, chevron, exxon, quick trip at one point, the company was

worth more than $35 billion, but reporting from our david faber now indicates a lower value today. nine deaths are linked to vaping, u.s. public health officials are investigating hundreds of vaping related lung illness, and none of the deaths are linked to juul products. but carl, as you know, when you spoke to the ceo of juul, kevin burns, about teenagers using vape products, apologized to parents, said it is not intended for teens. we reached out to the company again today, they said no comment. meantime, shares of the tobacco giant altria with 35% stake in juul not reacting, it is up .2%. there you have it, carl. back to you. >> thank you for that. all of this is while a house hearing on vaping is under way in washington, investigating what they call the youth vaping epidemic with us, former ceo fred hasan

welcome back good to see you. >> good to be here. >> i wonder what you think of how we regulated these products as a country since the beginning and allowed them to grow so quickly. >> yeah. i think in this case the science has moved forward very quickly we've seen very fast advances in the devices, powerful devices that can deliver this nicotine very efficiently, very powerfully, and the regulatory framework has simply not kept up we're looking at a public health crisis 5 million teenagers who vaped this year is just too high and the number has doubled in the last two years this is a public health crisis nobody could have seen it five years ago, but it is happening now. >> yeah, the science moved quickly. of course, advocates of the industry would say look, we're trying to help people quit

smoking. we know that's the biggest killer of the american population, next to heart disease, perhaps what happens are you worried about the category going away? >> well, so on the subject of quitting smoking, my former company was the innovator in the nicotine gum and patch, the brand name was nicorette but we came through the front door applied through the fda, got it approved, and nicotine was delivered gradually into the bloodstream, it was not a hit. so i would just recommend that if this truly is helpful to quit smoking, that they should be invited to do the research and then to file their application with the fda and to get a lawful approval to be a help to quit smoking. i think the problem we're seeing

now is that these devices are allowing a large amount of nicotine to be hit very hard, very quickly, and as we know, nicotine is a very powerful and addictive substance. some people say more powerful than cocaine >> yeah. you know, fred, you mention the regulatory framework didn't keep up with the market i wonder what you think of government reaction so far have the right steps been taken? enough steps been taken? >> i think some reactions are occurring, but what we need is the congress to come together bipartisan manner, deal with this directly. this is not a partisan issue, give the fda the support to do it the fda already recognizes that nicotine is an addictive substance. all the e cigarettes have a flavor, they're invitation to recreation, they should be banned also, why not try to encourage

more counseling for the mothers and fathers of the children. have them talk to the nine-year-olds and tell them, don't take on the peer pressure from school. this is not going to be good for you. i was hoping we would be seeing this be free of nicotine, and it is disappointing we're seeing a problem these days >> fred, this has me worried about what else regulators maybe haven't checked or spent enough time on. there's the whole warm tobacco or whatever you call it that the industry is saying surely it has got to be safer than cigarette smoking. is it really have enough tests been done on this stuff before it's been released to the public under whatever marketing scheme the companies have >> there is no question that smoking is very dangerous. 35% of cancers are linked to smoking. smoking is bad this thing requires more experience, a lot more data, and a lot more people willing to

invest in the r&d required to understand these things. what i am concerned about is the very fast move through very powerful marketing tools, virtual viral marketing to get to younger people in this manner, to get them onto the product. let's learn more if it does good things like nicorette gum, let's do it all it does now is gives you a powerful nicotine hit. >> finally, fred, the company probably expected regulatory risk in the states i wonder what you make of india and china and the idea that maybe those international gold mines are lost >> well, they're also clamping down obviously this is a global problem nicotine nicotine addiction is a problem around the world people are seeing the data the u.s. and uk are more free

for products of this type than many other countries i really think it has to be stopped before it becomes a real problem. getting young people onto nicotine is a real issue nicotine is such a powerful addictive substance. >> certainly reminded of that every day. always good to get insight on an important topic. thanks again after the break, can you tell the difference between the two pairs of shoes you have a pair of allbirds and amazons onset. -- on set. a look at that in a moment woman: my reputation was trashed online.

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all right. let's get back to a controversy that came to light last week, having to do with allbirds, popular hipster shoe, and amazon, which is arguably copying allbirds one box, brown cardboard box,

black lettering. this is allbirds the company is worth $1.4 billion, a startup. they've got a shoe that has a distinctive look you see here, bowool, this whit the laces. you see allbirds, you generally know it is allbirds. here is 206 collective that's amazon, seattle this company is obviously worth quite a bit more the shoe is 50 bucks cheaper than this shoe you can see wool upper, very light color if not white bottom. wool laces some say these are being ripped off. what do you think, morgan? >> well, i think this looks like a priceyer shoe. i'm not surprised to see this is

$95 versus this one being $45. they look certainly similar, especially the materials, the colors i'm going to see how much they weigh. they're both very lightweight. i think they look similar enough that you might have to do a double take. >> carl? >> yeah. i think there's no longer a surprise, is it? >> i'm not an ip lawyer, but i mean it looks to me like these two are pretty close interesting legal action wise to see what happens here. it goes once again, we were just talking about facebook versus snap, and people saying that facebook has copied snap features now we have amazon versus allbirds it is important for investors, these companies are under scrutiny across a number of different metrics. one of them, in amazon's case,

how it treats other retailers, including third party sellers on its own internal network if it can be argued that amazon is using whatever power it might have in e-commerce to crush others, i don't know who knows how this might play out on the governmental stage. >> sort of gets back at that key factor where a company like amazon is concerned, the role that data plays. as companies gather more data, they know what their consumers and customers want, and how they develop products to's attract mr dollars, what it means for the competitive landscape. allbirds is not one to shy away from suing if they thought their shoe was being copied. they sued steve maddon, and earlier sued an austrian foot company. interesting to see what they do

with this amazon specimen. i think there have been comments from the ceo as well tongue in cheek comments >> copy our environmentally sustainable practices, amazon, taking a shot at them there. you don't need data to figure out how to make a specimen that looks like another one >> there you go. our unboxing of the sneakers still to come, talk about a price cot. pivotal taking the netflix target down from 515 to 350. dipping into the red for the year, netflix that is. stock down 2% now. we're going to talk about the stocks, oh boy, arrested development, next. stay with us why are you so good? 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

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welcome back i am sue herera. nuclear negotiations between the u.s. and north korea will likely resume within two to three weeks. the national intelligence service briefed lawmakers in seoul, hours after president trump said another meeting with kim jong-un could happen soon. iran lashing out against the u.s. and other world powers accusing it of the recent oil attack in saudi arabia a senior military official telling its parliament, enemies that try to attack iran will face captivity and defeat. a ninth person died from a severe lung illness linked to vaping

kansas officials say the male patient was over 50 years old, had underlying health conditions it is the second vaping related death in that state. according to the cdc, at least 530 vaping related illnesses have been reported in 38 states. a big recall to tell you about. nissan recalling 1.3 million vehicles mainly in the u.s. and canada to fix a problem with backup camera displays the recalls cover various 2018 and 2019 nissan and infinity cars there are no reports of crashes or injuries. you're up to date. that's the news update this hour carl, i will send it back downtown to you. >> sue, thank you very much. european markets will close mixed as data shows german business sentiment rose a little, but fell to a decade low. the top court ruling johnson acted unlawfully suspending

parliament we have more from london >> reporter: whether they feel they could have jurisdiction over the issue, the rule has been a scathing verdict that the prime minister, boris johnson, offered no reasonable justification for suspension of parliament, and as such, acted in an unlawful manner. the court ruled in favor of that members of the opposition party are also thrilled at the result. this was johnson's initial verdict, response to the verdict. >> i have the highest respect of course for judiciary and independence of our courts but i must say i strongly disagree with this judgment and we in the uk will not be deterred from getting on and delivering on the will of the people to come out of the eu on october 31st

that's what we were mandated to do. >> reporter: it may not be that easy, of course. what we're looking at tomorrow, parliament re-assembling late morning wednesday. opposition lawmakers and leaders i have been speaking to saying they're intending to push ahead potentially with the effort to oust prime minister johnson, calling for his resignation. others saying they would like to see general election as soon as possible, others saying a second referendum on brexit would be their preferred course of action as usual, more potential volatility over the currency, more political uncertainty, a bit like the weather in london, yet more storminess ahead potentially. >> we appreciate you continuing to watch that. now shares of netflix lower again, going negative for the year in a precipitous drop for the stock. more streaming players like apple and disney enter the space. mike santoli has more on

netflix's fall this year mike, netflix fell last year from around midyear into the end of the year when everybody else was falling. and then rebounded is this similar or is it different? it was precipitated by earnings. >> it is similar in magnitude, but when the market was rushing lower, it was about stocks that had the greatest profits, fast moving stocks hit harder you look back at the chart of netflix against the nasdaq 900, it is tremendous surrender of what had been amazing outperformance two years ago, the following ten months, up 200% more than the nasdaq 100 and it has come back almost the entire way essentially it is neck and neck with the nasdaq 100 over two years, but had been up by --

tripled it a big premium is being drained it is the specialness, uniqueness, certainty on the business model, how fast they could get to whatever subscriber base people thought was proper scale to get profitable. i think a lot of that is what's going on also, you're seeing a drip, drip of the street getting more cautious incrementally, but not in a dramatic way. look at the breakdown of analyst ratings. you have 70% of ratings still buys, higher than it was a year ago, average price target is still 393. it is a 50% up side to the average price. essentially, the stock rushed in a direction the street caught flat footed a little bit to me it is not zero sum game, disney gets it, netflix loses it, for me it is about the fact that you only had to own netflix if you wanted to bet on streaming. now you have other options the other thing, half billion for seinfeld coming shortly

after netflix was saying it didn't -- >> and three movies to scorsese. you mention the street pivotal was a street high at 515, cut it to 350 that will get your attention >> without a doubt i think they're following the stock. they're not leading. it is still a hundred bucks up. >> you talk about the role of faang more broadly in the market, have been having this conversation about the idea of rotation the weakness we have seen recently in netflix, how is that effecting the broader market >> to be honest, you would have to say it is absorbed relatively well s&p holding close to highs things like software more or less took over for faang even there, you flattened out. but to the point about the rotation, it is unclear if anything enduring is going on. growth stuff still hasn't

surrendered that much of its grounds. seems like it is in an up trend. netflix is a different story but in general, i think the general long term growth story in the market is working. >> back to the issue of the analysts, it seems like investors have gone in a different direction than the analysts have. so much of the narrative that we hear is people aren't going to drop netflix for the other things it is the primary one that you have to have, it is part of the basket of things people hold onto what's the lesson for the investor who might be listening to analysts, doing homework, but still, the narrative is changing, whether it appears to be or not. >> to me, the lesson is you have to try to figure out what's priced into the stock. i don't think now the market is saying that people in droves are going to be cancelling netflix they're probably saying it is a slower trajectory to getting to

whatever number of global subs you had to get to. to me, it is how is the business gain working, it is what's priced in, how much pulled forward. now you're pushing that back out a bit. also, is pricing caps. netflix looks expensive relative to everything else. >> we had needham's analyst, said they need 6.99 ad supported deal >> that was not part of the story. >> at the least, price hikes are done. >> that's the way the market is viewing it >> can you exorcise from faang and have a relatively stable faang overall? >> i think so. might as well throw microsoft in there or something without a doubt, there are big s secular growth companies that i think the market is willing to give the benefit of the doubt and have leadership for the market i don't think faang suffers that badly, it is just tracking the

nasdaq 100 for two years see where it goes from here though >> thank you. dow is down 30 points, s&p down 6 after the break, mega moon contract for a defense name. ayitust.plain that nex st wh hmm. exactly. liberty mutual customizes your car insurance, 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 ♪

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in streaming wars, they continue to amp up netflix losing gains for the year, disney on a roll, and big analyst call on disney we debate which may be the better bet for you. nike reports earnings after the bell traders take their position ahead of numbers all of that and more straight ahead on the halftime report i am send tg to carl you showed both those shoes. i can say, i wouldn't wear either of them >> thanks for that, brian. take that under advisement. >> they're women's shoes anyway, brian. let's go to cme and rick santelli. >> i want to welcome johnny fine from goldman, sachs. thank you for joining middle east -- joining me the funding market is smaller than precrisis we do repos, buy securities, put cash in, also have record growing debt and deficits which means we have big issuance which

pulls cash out are these funding issues going to keep recurring in your opinion? >> firstly, rick, i don't think these funding issues are real strains on capital markets activity i think they're largely technical in nature, well documented, well explained due to record treasury issuance, due to technical factors related to tax payments, and ultimately the fed stepped in and did what they're supposed to do in soothing markets, calming them down that's going to help markets get to quarter end i don't think we're signaling anything worse that will happen from here. i expect the fed will continue to proceed with these operations so long as there is signs of being stress in repo markets. >> on another front, on corporate debt, nonfinancial means everything outside of financial institutions like banks. if you look at total nonfinancial corporate debt as a function of gdp, peter bookfar

sent out a chart saying it is at all-time highs around 74% of gdp. is that something that will ultimately effect pricing of corporate securities in your opinion? >> there's been a number of structural changes that have enabled growth in this leverage throughout the cycle yes, we are at cycle highs in leverage, but importantly, last time we were at this level of leverage, interest costs were higher we're now in a situation where a lot of debt has been incurred and is much more affordable than it ever has been the second point to this as well, rick, i believe we're at the point where leverage has likely peaked in the nonfinancial sector. companies are fiercely protective of their ratings, large debt borrowers looking to reduce the funding footprint, all of this together i think made our market investment grade

incredibly attractive place for investors to part cash. >> we had a wild ride in august in fixed income, specifically sovereign debt markets plunged ten year note yield from well above 2% to 1.46. do you think moving forward that we're going to continue to see downward pressure on rates, and is it mostly due to capital flows in your opinion or is there something nefarious it is trying to broadcast regarding the state of the economy, whether it is global or u.s. or maybe just global. >> sure. so i think a small component in the rally in treasury yields we have seen this year has been driven by a slow down in economic data from the u.s not a sharp slowdown, i don't think that treasury markets, i don't think the shape of curve or level of yields is forecasting recession or any significant slowdown in the coming years i think the majority of the variable behind the rally is because of the slowdown outside

of the u.s., the negative yield index complexes outside the u.s., and capital flows into u.s. fixed income, because simply you're one of the few countries in the world with positive underlying government bond yields. >> is positive underlying bond yoelds. >> thank you for joining me today. >> rick santelli, thank you. the broader might have turned negative. there is one name that renames firmly in the green and that is lockheed martin. why? nasa is awarding the company a contract for six spacecraft with the ability to order up to 12 total. it's a spacecraft, hardware belonging to nasa but built by lockheed. nasa plans to use orion for the artemis program that's looking

to put americans back on the lunar surface and establish a permanent outpost. earliest iteration of orion dates back to the w. bush administration. and as it has been adapted, development has actually cost upwards of $16 billion in total, something that's drawn criticism over the years. but this contract signals a shift and a commitment to production. this is insuring the survival of orion long term, cementing it as a key part of the artemis program. but it also speaks to the turf battle between states after the lunar lander was designated. texas lawmakers loudly voiced opposition so it will be managed by texas johnson space center. one of the lawmakers is quoted very prominently in the release. this really i think gets to the heart of why space is seen as so

crucial, not just because of national security and the idea of u.s. dominance on earth and beyond, but because space programs like orion are jobs programs, as well. all right. important news in the world of space. still to come here on squawk alley, what ever happened to the supposed apple/disney merger that's next. stay with us. geico makes it easy to get help when i need it. with licensed agents available 24-7, it's not just easy. it's having-jerome-bettis- on-your-flag-football-team easy. go get 'em, bus! ohhhh! [laughing] c'mon bus, c'mon! hey, wait, wait, wait! hey man, i got your flag! i got your flag, man! i got your flag!

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stock session highs today about 129 to the upside. consumer confidence was not great today, worse number since march. and the president at the u.n. today seemed to throw cold water on at least the idea of a light interim deal with china, a pretty fiery speech about china's business practices. we are down about 40 points. one bit of news. jim cramer sat down with bob iger on mad money. this is iger on apple and specifically tim cook. >> just as a consumer, i use those products, and i want those products. talk about a wow factor.

they continue to wow me. apple continues to raise the bar as far as quality and quality of service and experience and design. i don't think they lost a step at all. they went through a tough period of mourning when steve went. it had to be extremely tough. i saw some of it first hand. i think tim has done a great job. no matter what direction you look or how you point i think you conclude that that company is one of the great companies in the world. >> full interview tonight. we're back in a moment. when did you see the sign?

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♪ liberty. liberty. liberty. liberty. ♪ let's get a check of the major indexes thmpt dow is off about 21 points. the s&p off fractionally. the nasdaq off also fractionally, but closer to one percent. a number of tech stocks especially the smaller caps really getting hit hard this morning. shopify which is more established, $34 billion market cop off six percent. tesla is off about six.

trullio is off five. so is lyft. so is etsy. so is stitch fix about 4.5%. even though the overall indexes not showing a lot, those tech stocksreally getting hit hard. >> indeed. we'll watch that closely. we'll look for nike tonight. let's get to sully in the half. thank you very much. good to have everybody with us. your investment committee on "halftime report" is mr. joe, stephanie leak, josh brown. we have two special guests today, courtney gibson and michael far who is an actual person and not just a camera shot. it's great to have you in person. stocks are getting up gains across the board. the dow was up triple digits earlier. we will ha