>> it is 5:00 here at cnbc china responds and what it means for the trade talks. boeing inking another deal at the dubai air show after a crushing call from regulators to redesign an engine component the new numbers behind ali baba's offering. president cook -- maybe. president trump and tim cook meet face-to-face at a plant in

austin, texas and carl icahn out with a new bet against some place i bet we all hung out as teenagers. good morning, good afternoon, good evening i'm brian sullivan if there is a president cook some day, you can say you heard it here first. that song as annoying as it is gives us a big theme today that is retail yesterday's slam of home depot and kohl sending shock wave through the world. that one, ouch, urban outfitters down 16% first, let's go to the macromarkets and stock futures

are down again they are in the red today. off 1.07 right now technology continues to power on yet another record for the nasdaq and nasdaq 100. the nasdaq 100, if you are not paying attention, please do, it's soaring on pace for the best year in a decade year to date. we are up almost 32% because we always like to make you a little bit smarter here. listen to this, 49 of the 100 stocks are up 45% this year. two of them, semiconductors lam research and amd have doubled. in the bond market, not moving

too much down a bit today 1.74%. yields have ticked down a bit has stocks have had a little weakness around the world, pay attention to asia. we have drops across the board japan's numbers are weaker that is the biggest drop since 2016 the chinese market both domestic and hong kong are down one of the few indices down this year globally. also keep an eye on the interbank lending. it remains high. the cost they use to charge each other. it has gone up in europe, we are seeing more red on the screen. those markets have been read hot. european markets are down a half to 1%. these are markets down

a bit of a pull back do want to do a quick check on the energy markets after a rough day for oil. coming off the worst day for performance. oil now off 17% from its 52-week highs adding so much pressure. now all the focus will return to the meeting and the pricing from the day before we'll talk oil in about 10 minutes. >> right now to your top business stories boeing inking a deal with dubai based emirates for 37 dream liners one day after boeing inked nearly $6 billion in deals the faa said it is not following any time line for the max to return to service and time pressures will not influence

that process also keep an eye on doordash looking for a direct market debut. yet to file with regulators but that listing is expected sometime next year another developing story out of china this morning. that country firing back on u.s. lawmakers after the senate unanimously passed a bill backing the hong kong protesters in their fight against oppression by the main land. these moves not playing well for beijing? >> absolutely not. the reaction was almost immediate. only hours after the senate had passed that bill aimed at protecting human rights that the foreign ministry put out a

statement strongly condemning the move telling the u.s. to stay out and threatening to take counter measures the government took another step by sum onning a political officer here to lodge a formal complaint. now the bill if it turns into law would require the secretary of state to review the special status of hong kong at least once a year and to see whether or not from the u.s. perspective they are maintaining enough autonomy from the special relationship with china. if it's deemed it does have autonomy, it will continue to enjoy trading privileges that it has with the united states the bill still need to be reconciled with the house and will end up on the desk of president trump where he will have ten days to decide whether he's going to turn it into law or veto it

>> so that's one side of the story. what if any implications could there be from this move and that counter to those u.s./china trade talks? >> well, in theory, the president could use this hong kong issue and this bill as possible leverage in the trade talks since beijing is reacting so strongly. obviously doesn't want to see this bill go through today, i spent quite a bit of time speaking and some who advise chinese policymakers. for the most part, they don't think president trump is going to use this as leverage. the argument was made that president trump has shown he's not so interested in getting involved in other country's affairs. they do not priorities

ideological issues that means human rights and democracy before getting a deal done for his own campaign they also said to me that president trump when he has spoken out about hong kong has indicated that he wants beijing to handle this issue all of that points to president trump not wanting to use hong kong as a bargaining chip. >> thank you eunice. we have some breaking news now around alibaba setting its hong kong share price offer at $176 hong kong per share. about $11 billion u.s. dollars certainly one of the largest secondary listings president trump heading to

texas today to meet with tim cook at a facility that makes the mac pro. frank joins us with more >> joining tim cook in austin in a facility run by flex they've been a assembling mac books since 2013 president trump is expected to use today's event to promote his efforts to get companies to add more u.s. jobs tim cook seeks further relief from further tariffs on chinese exports. apple fought for exemptions that would affect apple parts apple has hired a pro trump lobbyist to help betle thoattle

tariffs. coming up, why unrest in iraq could be the biggest wildcard for crude good news from the fda has one stock soaring. later, it has been on target why the retailers big arye could get even bigger and make investors even happier that's next. for silky hair, glowing skin and healthy nails. nature's bounty, because you're better off healthy. step up, please. empty your pockets. looks like you're all set for that business trip. you've got your smartphone, laptop, your other smartphone... woman: is this all the devices you have? your tablet... seriously? smartwatch, your backup tablet, and... woman: anything else in your bag? ...whatever that is. (beeping) this isn't working. introducing samsung mobile workspace solutions.

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>> oil pressures are flat to slightly down by follows yesterday's biggest draw for crude. inventories in the u.s. keep building up. concern about the trade war pressuring the other side. there are a couple global wildcards you want to have on your radar let's talk about that with matt smith. good to see you. how are you doing? >> good. don't get in the weeds there is this rule around shipping fuel called imo 2020. i won't get into it. this rule is changing how we refine fuel, which is leading to a giant build up in crude oil stocks, is it not? >> there's a few things going on really particularly with imo getting through. you'll have this increment al demand coming on line in 2020 because of the switch in fuels

these refiners have been encouraged to run as hard as they can to produce this diesel. >> that all ships on the sea will have to use next year >> exactly the high sulfur fuel is out, low sulfur fuel is in. the big pull of crude going to asia to be available for 2020. >> a trade war aside, we are shipping more oil to china because we are making moves here that is something to do with crude production currently they are like 500,000 below the goal levels. we are seeing this build up of

crude. crude industries in the u.s. continue to rise every single week we are getting this bearish influence hitting the market >> because if you are not refining it, you are just storing it how long will that last? >> as long as the crack spreads the incentive to refine remains low in the u.s as these guys are refining diesel, too much gasoline is being produced that will continue to weaken as refiners go after the diesel and getting more of what they don't need >> growing protest in iraq how big a wildcard is that >> every week, we seem to have a different country. iraq, at the moment, protesters are going on there in the southern part of the country the port and production has not

been affected for that there is a growing concern specifically that is the wildcard >> showing unrest in other oil producing nations. oil remains stuck in the 50s it is incredible >> it is we have that surplus building up in the u.s we have inventories coming through. we have other countries putting oil on to the market we know opec can put more on the market >> quickly, is the u.s. destroying its own industry? >> a little bit. we'll have to see next year as a real change up next year, we'll have a big meeting there. >> on deck here, the big short mall version what karl eye khicahn is doing

against retail the big number today, 20%. saying that is apple's exposure to china a big event involving tim cook and president trump today. we'll get more on that ahead stick around

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today. looking at chicago, is that the wabash avenue bridge gorgeous city. pharma and retail topping your charts to watch on this wednesday. shares of urban outfitters falling. down 16% retailer blaming higher mark downs due to weaker sales of women's clothing amarin down also a $7 price target underwell amming sales growth lower the odds of amarin being a take overtarget. and endo, the fda has accepted a

treatment for secellulite. still ahead, rh's ceo speaking out for the first time plus, it is your money and your vote top democratic presidential candidates will decent on atlanta today. more of "worldwide exchange" when we are back after this. for silky hair, glowing skin and healthy nails. nature's bounty, because you're better off healthy.

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>> welcome back and good morning. dow futures solidly in the red they are off 115 points right now. we'll get you more on the markets in a minute. let's check on other top headlines including new charges in that massive college admissions scandal frances rivera with more >> good morning to you two american service members were killed in a helicopter crash in afghanistan the cause of the crash is under investigation. reports say they did not die by enemy fire there are close to 13,000 troops supporting missions to train and assist afghan forces the names will not be released until families are notified. lori laughlin and her husband are facing new charges

adding bribery to her case laughlin is facing fraud, money laundering and bribery and accused of paige $500,000 to get her daughters into usc she has waived her right to appear in court. look at this scene in southeastern australia a badly burned koala was trying to escape a brush fire a woman saved it then pouring water on it. we hope we have an update saying that koala is okay >> dangerous move she made hope they are both okay. thank you so much. when we come back, why red hot target may get even hotter one day after new york filed a lawsuit against juul, a doctor's group is calling out the company

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investors should love. you got an extra $200,000 sitting around for a car you might want to spend it we'll show you aston martin's new suv. stay with us as the second half of the show starts right now ♪ good wednesday morning welcome back thanks for being with us on cnbc i'm brian sullivan, almost exactly 5:30 stock futures down about 125 points right now the dow did fall a bit yesterday ending what has been a very strong run partly because of home depot technology continues to power on another record for the nasdaq and the nasdaq 100 that has been

absolutely on pace for the best year in a decade check out these nuggets. 49 of the nasdaq 100 up more than 25%, two of them, chip makers lam research and amd have doubled. my math says 10% are down this rear it has been a red hot run for technology in the bond market, yields have come back down 1.74 on the 10-year. a lot of red on the screen in europe and asia. we saw japan exports continued unrest in hong kong. that market down what has been a big run for the european markets the dax and germany up 19% we are seeing right across the screen in europe new this hour, alibaba at 176 hong kong dollars per share,

roughly 176 u.s. the american medal association is calling for a ban on all vaping products not approved by the fda and encouraging lawmakers to carry out the crack down saying they should only be available by prescription following california and north carolina >> it is said a distracted operator was to blame for a deadly crash of an uber self-driver crash.

adding inadequate safety culture at uber was also a major contributing factor. >> ceo of rh speaking out after it was revealed that berkshire bought shares making it the fourth biggest share holder. last night discussing having his company picked by warren buffett. >> whether the oracle somehow finds your company in all the companies in the world, we think we've done a lot of good work over the years every now and then i'll get reached out. i've never had so many people call or text me about an event ever in the history of my career another big story we are watching also has to do with retail but not warren buffett. maybe not yet. target is set to announce third

quarter earnings in about an hour it continues to score high-profile partnerships. let's bring in senior consumer analyst. matt, it is not the same space but yesterday home depot spooked people kohl's is it fair to say is a direct competitor to target, they scared everybody. what can we expect from target will it be a good news story >> i think it will be a good news story target is taking market share from kohls they are taking it from a lot of what i would call the challenged retailer home depot's miss is entirely related to a little softening in the housing market >> they had their own internal stuff that make the market will react to

>> agree on that think of home depot not related to home depot where target is positioned to take market share from all of these challenged retailers. they are putting in levis. that used to be primarily sold at macys when you see weakness at kohls, that winner is not just amazon that winner is target. >> i don't like to give shopping anecdotes because i'm just one dude i will say this, going on amazon lately, when you search for basic things what i have noticed, maybe i'm wrong, the brand names don't seem to be there in the searches there is a bunch of names i've never heard of the levis may not be the first

thing i see. is that something actually happening where the brands, maybe the nikes and levis are coming off the amazon platform >> right i think exactly is happening >> i remarked to my wife the other day where are all the brand names on amazon? >> yes about three years ago, brands decided they need to be where the consumer is. they made this decision to run to amazon. what they've discovered is that amazon is not taking care of their brand. nike leaving is the first indication of a major brand saying, i don't necessarily need you. one of the reasons they can do that is there are good strong retail partners they can run to. for example, target is a strong retail partner with positive traffic relative to the consumer with a nice store experiment,

improving digital appearance >> i just severarched amazon fo jeans, no levis there. you have lee, maverick but there is a blend there maybe consumers are noticing that target sounds like they are doing it right i guess to steal an old tag line from sears maybe not the best analogy >> let's hope not. they are so target has a long history of developing their own brands. they've been successful with good fella and cat and jack. and with their partnerships. >> this is what they used to do really well 15 years ago when they were target you went there to get fafst

inexpensive fashion, masimo and other brands >> now they are bringing in national brands saying i don't get a good experience for my brand at a macys or a kohls. my store is presented in a store where there is light bulbs flickering and nobody is there they go to look at target. they are wonderful stores. they are clean >> there is a starbucks. >> they are clean. you can do drive up. you get a better brand presentation if you are the brand, you are looking at this target saying, this is not as good as macys, maybe even better. >> do we own the stock >> 100% you own the stock. >> i like that not 99 target ceo will talk about their earnings result coming up on

"squawk box. that is a big interview. what they are doing right coming up still ahead, fight night in atlanta. the 2020 democrats taking the stage for the latest debate. we'll give you a preview and investors betting millions atainst mall owners. th hasn't stopped karl ecarl icn more coming up shop small and watch it add up. small business saturday by american express is november 30th. whether your beauty routine is 3or 57,... make nature's bounty hair skin and nails step one. it's the number one brand uniquely formulated for silky hair, glowing skin and healthy nails. nature's bounty, because you're better off healthy.

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up their debt. he's short mall owner debt traders telling the journal it is likely the largest short sale of mall debt right now talking with the ceo of cane international. you might know one of their products, the beverly hills bely hilton you got carl icahn betting against malls. is that sort of separate from what you see >> it is an understandable bet in the real estate market,

you've got dropping foot fall and increasing vacancies the shopping on line market is growing so fast that the secondary markets are not able to respond openers don't have the capital base to convert into more experience experienceal offerings your main city malls are still doing well but the secondaries, people don't go there. >> a lot of it is hotels we mentioned the waldo waldorf astoria. you have a hotel with apartments on the top the largest building in miami. some say this is an overheated market you don't feel that? >> we've vested in several

businesses a golf business, swingers, opening in d.c >> it is a minigolf. >> a women's club called all bright the mall owners that have the space to convert are interested in the different offerings you have to have a reason to go to these centers if you don't, they'll continue to struggle. >> you are a london based investments. d.c., new york, miami. you still need to stay if you vest in these a plus locations you are not going to cleveland, using them as an example >> we are big believers in gateway cities, the place where people want to live in from leisure to sport to

business is attractive miami, los angeles, new york city these are places that continue to grow. while they may go through small dips, the strength of the gateway cities gives them greater resilience >> is the appetite for investors to still acquire debt out there? >> it is we are in a very low interest rate environment >> even negative in parts of europe >> that's right. people are looking and prepared to take a little morris being to get some yield on their money. ultimately that is good for people who want to hold debt they understand that actually small amounts of long-term growth is good for them. >> i can't let you go. we are both huge tottenham fans. the coach is out it is done >> it is done.

>> dubai tottenham >> in 2014 you have to thank the previous coach. he's changed the perception of the club jose, it seems like a roll of the dice we wish him well >> i know you do jonathan, a real pleasure. thank you for coming on. on deck, futures pointing to maybe another rough day. the impeachment hearings set to resume ene uronl impact to yo mey wh wcome back. and are gluten & dairy free. they're all clean. all the time. even if sometimes we're not. sundown vitamins. all clean. all the time.

>> we have got a big time line up of ceo s across the board

target, golden state warrior's coowners a big time line up you cannot afford to miss cnbc today. most of them are exclusive the recap you need in about 60 seconds. china criticizing the u.s. after the senate unanimously passed a bill supporting the protesters that bill will now head to the house which already passed its own legislation on the matter last month australian banking giant west pack has been accused of breaking money laundering laws saying they violated the law more than 23 million times including failing to detect transfers that may include child exploitation in asia each to face a fine up to

$15.7 million. aston martin is entering the suv market for the first time in the company's history saying it marks a bold new chapter for the company. also features the bold new price tag of $190,000. you may see this in the james bond movie at some point 2020 democratic presidential hopefuls face off tonight. it marks the fifth debate since impeachment hearings began we have full team coverage going live to our reporters. let's start with you, what can we expect from today's key witnesses on the impeachment hearing side of the story? >> reporter: perhaps the most crucial is gordon sondland,

ambassador to the eu some have said it was sondland who said the importance of the meeting in order to get military aid. democrats will try to make the case that this is tantamount to bribery. >> bribery does involve a quid pro quo. bridely involves the conditioning of an official act for something of value it may be a white house meeting or $400 million in military aid and something of value to a president might include investigation of their political private al it will be our job to decide whether the impeachable act of bribery has occurred >> republicans say it is a game of semantics >> in these pages in just these 10 transcripts so far, the word

bribery appears in these 3,500 pages exactly one time ironically, it appears not in the description of president trump's conduct. it appears in the description of vice president biden's conduct >> sondland's testimony will start this morning officials will testify this afternoon. any indication that this will go well into the evening. >> the house was able to pass a short-term spending bill amid these hearings could the democrats still legislation while they investigate the president. we need to kind of have a functioning government >> yes let's not forget that government funding runs out tomorrow. there is not a lot of time president trump still has to sign it. one of the big questions around impeachment is will the

political 5 political accramony spill over pelosi met yesterday with others and perhaps there is movement there. clearly the party divides are getting deeper >> now turning to atlanta. welcome, we overlayed the nice animation and music just for you. >> thank you >> you are welcome great to see you you are going to have a long day, my friend what are the expectations tonight for when these 2020 democrats take the stage later on you've got the impeachment and the a sanction of one mr. mayor pete that's right so much at stake for many of these contenders you'll have 10 candidates on

stage facing the shifting dynamics, the growing divide look at the latest poll out of iowa you see mayor pete buttigieg with 25% then biden, warren and sanders there fighting for the second place finish if history is any guide, that means mayor pete may be in the hot seat getting questions and attacks from other candidates. the rest of the field here, we have four candidates on the stage that do not qualify for next month's debate. they'll try to have that moment. a lot going on and a change in dynamics in the race >> if we don't see a turn by those four candidates, this may be the first time we see them on the stage and as democratic candidates what are the other points we

need to watch for this evening that's right they are almost running out of debates at this point. we have a debate in december and january. they'll try to make that moment. another thing i'll be watching this will be the first time we see some real daylight between senator warren and sanders you'll remember senator warren has said she's with beeny on the issue of medicare for all but she's rolled out a different transition plan and way to pay for that we'll watch to see if she's the main focus of attacks as she was in last month's debate >> thank you a long day for you, buddy. we'll see you soon from politics to the markets. futures are down we are off about 115 bringing in a man who has been bullish. he's probably right.

jeff, welcome. i remember back in august when the yield curve was turning. you stayed easy. that's been right. do you remain so even after what's been a pretty nice little run? >> we do we didn't stay long and strong until lately the technical indicators >> if you say moving average diverge ens, you have to put a dollar in the jar. >> a nice cross and rally since that signal. picked up some stocks, a lot of different sector rotation funds. >> like what what looks attractive to you guys >> two big stocks that have done well the 5g chip maker just came through our screens.

>> regn and qrvo >> i'm glad you are not saying microsoft, facebook, amazon. >> we don't go for those we go for stocks off the radar sort of sleeping there but not underperforming. about 20 stocks there, two of them doing really well >> since you said it, i'll say it i'll call and raise on rsi relative strength indicator. a lot of these technical measures are starting to flash overbought, overvalued you are not worried about the mark row macromarkets? >> not right now a lot of these have continued to stay elevated going into the year end yeah, we are concerned but we

have been tracking closely trade is still a problem it continues every time something goes wrong there or something doesn't happen smoothly in a trade deal >> we just talked about the debates. i had lunch yesterday with some fund managers. they weren't be political but they were worried about this war on wealth tax. if there is a transaction tax, they worry that could damage the underlying core of the market and that it is something for investors to pay attention to. where does politics play on your watch list right now >> it always plays we are not biased politically either but you have this cycle. you have the election that drives activity that the market

reacts to. >> it is a wildcard to seasonal bullish patterns is what i'm trying to say? >> not really, it's really strong into the last year. >> but we've never had a politician ever say let's tax the stock market >> true. we have different fees and rates like squachwab and others cuttig rates. it is strong fourth quarter and year end and probably a strong 2020 >> jeff, thank you today your rbi the queen and prince philip, it's their 72nd wedding anniversary. in the time the two have been married, america has had 13

presidents and 30 different supreme court judges they were married in 1947 in the time the queen and prince have been we had, the dow has been a school 15,455% here is to celebrating a 73rd year records all around that's it for us, "squawk box" begins right now good morning, lowes set to report a day after home depot missed guidance fell more than 5% and actually took the dow down yesterday. retail giant target reporting this hour. we'll bring you the numbers and exclusive interview with the chairman and ceo carl icahn reportedly betting hundreds of millions

that mall owners won't be able to pay their debts november 20, wednesday "squawk box" begins right now. >> good morning, welcome to "squawk box" here on cnbc. becky quick will be joining us in just a little bit she's got a big exclusive interview with brian cornell something you don't want to miss plus exclusive interview with the ceo of walmart and activision blizzard. we'll talk about that with