>> good morning. welcome to "squawk box" on cnbc. we are live from the marketsite on times square. we are live from the nasdaq in times square andrew is out today. we have tom farley in today. former president of the nyse and he is a cnbc contributor already you are seeing some pressure coming to this. dow pressure is down on the news of president trump saying he doesn't care if this gets done now or he doesn't care if it it waits until after the election dow is down. s&p off by 10.

nasdaq off by 35 we have been thinking the new deal would be by december 15 the huge question is do those new tariffs come into effect >> the market has been punched in the mouth twice since yet yesterday, futures were up almost a full percent. the first china news yesterday that things weren't looking great for december 15. these new comments imply phase one is not nowhere but if people are still thinking december 15, that's hard to believe >> yesterday, the pull back was the worst day we've seen in months but still talking about a decline. the dow up 4.2, s&p up by 5.5. well see today >> while the move yesterday wasn't too significant, volatility spikes more

dramatically that implies that today's move was not unexpected we may see bigger moves in the days ahead >> we have the sound bite. getting to the comments from willem marx in london. >> the president arrived here late last night. stayed at the u.s. ambassador's residence. he gave some public comments including on china saying he wants to wait until the deal is right. take a listen. >> the china trade deal is dependent on one thing, do i want to make it. do i want a deadline, no in some ways, i think it is better to wait until after the election, if you want to know the truth. i'm not going to say that. i just think that. i just tell you. >> so, you know, we've sh discussions about the phase one

trade deal clearly, we are expecting things to step up that preliminary deal is not concluded. it doesn't sound like he's in much of a rush, guys >> it is an old technique. i'm not going to say it but in some ways -- i'm not going to point out you know nothing you can say it without saying it that is what he just did interesting the take from the new york times versus the wall street journal wall street journal plays it straight trump to levee tariffs on brazil the times, trump's adding south americans to his trade war no president this clown in the white house adding anyway, different ways of saying the same thing

how many couldn't nants now? >> asia, europe, south america >> not australia yet >> we took a few shots at australia. >> these people need to get their act together if they want to trade with the superpower >> i agree with him in some ways there is this question of is there somebody goingto be more china friendly in the white house. >> if they have taken a 340r hard lined stance, if you have a super skinny deal, maybe it is better to wait. >> elizabeth warren might be tougher. >> not tougher not tougher. >> how about joe his son still got a billion from the sovereign fund

>> what about mike bloomberg >> he has a consistency they have to comply with otherwise they'll get sent to a concentration camp we probably just got blacked out. >> a tweet said the list is being fast tracked in response to the bill requiring sanctions against chinese officials that had been linked to alleged abuses of muslims. joining us now to talk about the comments is alec young >> great to be here. >> what do you think if there is not a trade deal that happens, even a skinny deal what does that mean for the markets? >> i think the market run off

has been predicated to a certain extent the exchange for perhaps some movement on intellectual property when there was word that entered the talks the december 15 tariffs moring them out is expected >> the chinese have now not only said they don't want the december 15 tariffs to come on but they want the original tariffs removed as well. >> there is stronger risk in light of the detail. if the positive inflection is more frag i'll than one thought, there are more problems on the front? >> that would be risk off to s&p, maybe there is a tendency to overreact

to the president's commentary. we've seen this movie like 57 times. >> let's talk about the real things we are approaching that december 15 deadline. what would matter to the market, what wouldn't? >> if those tariffs go into effect, that would be a negative that is being priced in as we speak. >> the president does because of the election the market won't like it it is selling off on that possibility. that doesn't mean we get a bare market or this rally is over you have to take things from the measures perspective there is a lot of gray and the tendency to look at the black and white issue.

the dow up 4%. those are some really strong moves. you could see an additional rally at the end of december do you think that is still on that >> a lot has to do with what you are talking about on the tariff. certainly the season at is favorable. one of the risks is that we pulled from this year's performance. you ask yourself what good news hasn't been priced in. this digestion is good it does set us up for the santa clause rally >> we are talking about a move just over 1% it is not a big move >> we could see some follow through. it might be a slightly 3 or 4%

move you would tell people to go ahead and work at that point is. >> i'm not ready to see these talks collapse even the december 15 deadline passes and new tariffs go into effect you feel okay. >> all about what markets have priced in. then it is like, okay. what is the next step? the market may take a slightly more negative view both sides have an incentive to get something done more of an incentive to move forward. >> how do you like stocks versus international stocks >> you want to be looking at rebalancing up that exposure

historically, when you see this kind of a spread, it is when you start to see the reversion up from the asset class it has gone down because of how much the u.s. has outperformed if international growth saw on the pmis china and europe beat a low bar. a weaker dollar helps international. in other stuff happening you know why you slap a punitive duty you know why it is a slap? >> i defer from the word that you are angry. >> no. when stuff used to be coming in, they would actually slap piece of paper >> duty.

> > trump administration said it may slap, you could say levee. these are punitive duties up to 100% of imports of french champaign. handbags cheese other products move in response to the 3% digital services as u.s. trade rep's office found the french tax was unusually burden some for u.s. companies including facebook, google and amazon >> emanuel had an idea let's tax those companies. they are american companies. if anyone is going to take

advantage of the american companies, it is going to be us. it is not going to be france >> shares of several french luxury goods stocks. >> he's even said he doesn't like a lot of these. he's talking about protecting amazon and others. >> he likes apple and i think he kind of likes facebook >> you said champaign. does that include burgundy >> is that your thing? >> yeah. it is delicious. they are ready i wonder if there is an additional slap going on >> you know my life now, finger up, chardany beer, just too much volume >> it is interesting

>> you are like the fat nyse guy. you like the $800 red wine >> i'm a simplton. my mother was a catholic nun for f five years >> when she met your dad >> they say no my father had just lost his leg in vietnam she leaves the convent and she's at home in a spare bedroom she had lost the two up. my grandmother set them up and they got married shortly after >> i had no idea

>> so no, i wasn't drinking. >> you were. you were nyse president. >> my mother was a nun for a while. >> i was adopted my uncle was a priest. >> my uncle as well. thomas wells >> very good >> i'm getting a little teary. >> what's the next plot? >> i think it is the early years. what about the early farley years? how was kindergarten >> when we come back, early forecast for cyber monday show americans likely spent a record amount on line and why companies

went big after this. and how trump's trade comments is moving futures this morning the next hour, china expert will join us. "squawk box" will be right back. what do advisors look for in an etf? don't just track an index, help me meet a client's need. is the fund built to sell or built to last? etfs are only part of a portfolio. so make it easy to explain. give me a quality fund that helps me get clients closer to their goals. flexshares etfs are designed and managed around investor objectives. so you can advise with confidence. before investing, consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully. ♪ yes i'm stuck in the middle with you, ♪ no one likes to feel stuck, boxed in, or held back.

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welcome back cyber monday sales are expected to have hit a record $9.2 billion according to new data. courtney reagan joins us with more you are back good to see you. >> i'm back. cyber monday is officially behind us. really just a couple of hours ago. that number a bit below official expectations as expected, those peek hours were pretty late around 11:00 p.m. eastern time a third of sales were done on mobil devices. some top sellers include frozen 2 toys, lol surprise dolls, nerf toys, air fryers amazon's cyber monday was biggest day of the year.

25 million items were joined on black friday and cyber monday combined the two days the biggest for toys ever. and the biggest ever for fashion on the site. amazon sold millions more devises. best sellers include echo dot and fire tv stick. stagt a reporting of more than 2 inches of snow saw a 7% increase of on line sales i've asked about whether snow helps on line sales in the past. there really hasn't been a difference i guess if it is black friday and you are going to shop anyways and it is snowing you will move on line. >> i went to the mall yesterday to do some shopping because it was snowing and no one was there. it was great >> right

retailers want it cold but dry when you have big snow days in new york, do people shift on line it hasn't happened >> they just lose the sales. >> it did seem to happen at least on black friday. >> yesterday, we were talking to a couple of people about it. should we anticipate i'm conditioned to think we are going to get these deals through the holidays or did i miss the opportunity? >> we have asked how much room they've given themselves in earnings to discount their prices they almost all say, look, we've given ourselves a little bit of room we have a shortened season >> i feel like they'll get

desperate. >> i only have three gifts i feel nervous about waiting >> no has no idea what you are talking about. >> i thought about thinking about the gifts. that's good for you. >> i'm glad santa does all that work for you >> she does. she does the consumer we refer to is she and santa we refer to. >> not really mrs. clause. >> i need one of those >> what war? >> vietnam >> my dad froze his feet

>> i grew up in a very, lucky, lucky time >> what about us >> the worst thing that happened to me, my dad made me pay my own car payment. >> we got to reap the benefits of the greatest generation >> opec meeting at a crucial time for the aramco ipo. later, we'll talk to china expert about president trump's new trade comments we'll be right back. (vo) the moth without hope, struggles in the spider's web.

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we are just days away from the most interesting opec meeting in years it comes as the audi aramco ipo prices, the new minister taking over and oil producers are at a dangerous cross roads. here is a preview. >> reporter: opec meets on thursday it is the first meeting with the new energy minister.

one of the son's of the king and half brother to the crown prince replacing the former minister with a member of the royal family shows how important opec's choices have become the long awaited ipo of saudi aramco that also prices on thursday, the day the opec meeting begins. its performance should add another later of drama to the meeting. finally, can opec move prices higher cuts were. extended it has been stuck in the mid-50s. that is bad news for producers and investors. a struggle to remain profit. the biggest decline is down 25% and others down more real concerns about a flood of oil related bankruptcies next

year >> the eirani is that opec wants prices to move high. but with doing that, you keep prices going higher and the struggling u.s. companies keep alive. this may be the only group that has the power to save the oil and gas industry from it self. there are 78 u.s. oil and drilling services publicly listed the combined market cap is $1.3 trillion. aramco's ipo is likely to bring $1.6 trillion. aramco is worth more than all 78 u.s. drilling and services companies. >> brian, you think that's a

fair evaluation? >> on what side? >> do you think aramco is overvalued or the u.s. is undervalued? >> on the u.s., it is all debt you probably care about the overall markets or at least the economy. millions of people and hundreds in debt in the oil and gas industry you talk about that. are they undervalued you eliminated date. on the other side, the aramco side, sure some suggest the evaluation could be high and they probably make the case the valuation could be slow. you got that pricing on the sanl day of the opec meeting with the new energy minister who is also one of the son's of the king that shapes up for a pretty important meeting.

>> the saudi ipo looks like an ipo in name only it is ending up about half a percent. >> 0.5% float. typically companies float 10% to 20%. i'm not sure it looks like a large private deal do you think this has any impact on the market? >> no. in a word. but i will say this. remember that ipo is pricing the local exchange the key here, you know better than i do. just getting the ipos going. the float is min school. getting it out there having a sliver of the trade, i think is sort of symbolic

forgetting the world's company the company is the world's biggest. getting it going to the market is a big first step. >> brian, thank you. good to see you. when we come back, it is getting more expensive for companies to use corporate jets thanks to some tax law changes but companies are being kept in the dark let's look at yesterday's s&p 500 winners and losers ♪ ♪ ♪ through the at&t network, edge-to-edge intelligence gives you the power to see every corner of your growing business.

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good morning welcome back u.s. equity futures swinging after president trump said there isn't a time line for the u.s./china trade negotiations. he said if it doesn't happen until after the election, maybes that for the best. we'll speak to our expert to get his take on it dow futures down about 81 points s&p down by 7.5 and nasdaq down by 28. ceos using business jets on the personal tab the cost has climbed from roughly $96,000 to $106,000. the hire cost comes from taxes the irs made companies can typically deduct

expenses ranging from pilot salaries but not for personal trips. the sec doesn't require companies to disclose loss deductions or to log the corporate jet use. they have a lot of different reasons. i understand the rational. the personal use, if they pay for it themselves, i understand that as well >> if they pay for it themselves >> if they pay for it. coming up -- what was the -- >> back to you >> the rules are very stringent. >> i like dick grasso. >> he was promised and deferred

compensation for years >> i'm trying to paint you with the same fat cat brush and you are not allowing me. by time you got there, it was owned by >> intercontinental. the rules around private jet use are very stringent the days of i'm going to use the jet, you get ousted by dan lobe if you are using the jet for personal use. >> he'll fly on his personal jet to see you to tell you to stop >> doing business in china ahead of the tariff schedule we'll talk about the comntmes. bloomberg flies all over the climate smeeti climate meeting in his jet i'll. i'll. eliquis. eliquis is proven to reduce stroke risk

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snoot futures have been up president trump made some comments that sent the futures into the red about 90 minutes ago. we are down around 79 points the president is at the nato summit here are the comments that caused it. >> the china trade deal is dependent on one thing, do i want to make it. i have no deadline, no in some ways, i think it is better to wait until after the

election, if you want to know the truth. i just think that. i just tell you. >> not going to say it just thinks it there are times he will say things he's thinking sometimes, i think he doesn't realize. >> you do the same thing >> i do. >> you do. i'm not going to say >> joining us now to join the discussion and the climate in china, jim mcgregor. thinking about what to actually put on your plate, james there are seven or eight things. the president just signed this bill they don't like that very much i don't know where the skinny phase one negotiations stand i don't know whether you do to are those even in the skinny

deal where are we now and i'll point out that it is december and there is an election in less than a year >> if you talk to the american side in beijing here, it doesn't look like any of the real serious stuff is in any kind of a phase one deal phase one will not work on reciprocity or forced transfer and technology issues. it will be more of china buying american products. the u.s. removing some tariffs china making some concessions maybe on intellectual property it is not going to good very deep china is chill on this i've been around a bunch of senior retired officials through a couple of events they are saying things like this is inevitable.

there is talk that next five-year plan that is under way is going to be focused on decoupling and reducing dependence on the u.s. >> jim, what was the idea that these two nations would come to a head >> yes the difference between the two systems, i think it was even the former commerce minister said that eventually that the u.s. could tolerate the differences between our system and the u.s. system when we were small but now that our economy is so big and powerful that the u.s. can't tolerate the differences that's what this is all about. how do we deal with the differences and have a different interface? right now, china gets a lot of the advantages i was talking to the swedish

diplomat saying there is a tunnel connected to a subway in stock home that the bidders came in with a 70% discount to the next lowest bidder because it is an open, fair bidding system, they won the contract. that can go on all over the world because of the subsidies of a state-owned system. china seems a bit relaxed about it the chinese official who negotiated china getting into the wto said the way huawei is handling this is giving all of china great confidence that was quite interesting >> when you were talking earlier about that we are ready for some decoupling and it was only a matter of time you could have been talking about the u.s. position. amazing all the similarities

there are times you use the word chill and there are times people here think they are in the driver's seat. none of this sounds that great, jim. >> i'm not a stock picker but the market is kind of funny how it kind of goes up and down on these hints. the truth of the matter is that the u.s. and china are facing a very different future. we don't know what it looks like yet. the europeans and others have to do their own deals this is not two countries. >> you don't think the threat of additional tariffs is really much of a threat at all, to china? it can be a threat, remember their system had a lot of threat that we don't. they can do a lot. they just took $150 billion in

special bond in localities and front loaded them from 2019 to get $150 billion more in infrastructure going they have a lot more to play with here. they have the population they have people geared up here that this is china's time. we have to get over this this is the world trying to keep us down. i've had friends of mine, u.s. educated to a driver for uber. who said, you are american and you had your time. this is our time we are going to surpass america. that attitude is pretty strong here >> come home, jim. i'm worried about you. >> i'm fact based.

not based on ideology. >> you've heard of the stockholm syndrome i don't want the beijing syndrome taking over you still got a pretty nice place over here. beautiful. don't come now thanks, jim. we'll check back with you. >> when we return, a college student in cifnialora is suing tik tok. we'll tell you more after this ! ! yes. when we do we launch? unfortunately, in 2 or 3, hours. why the delay? cognizant is helping banks use digital technologies at scale to advance speed to market.

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welcome back, everybody. a california college student has accused video sharing app tiktok of transferring private user

data they say it does not store personal data there. tiktok is owned by bite dance technology but says that it operates entirely outside of china. the company is already facing u.s. government probe about data storage and possible censorship. joining us is sarah fischer, axios media reporter also, david mccabe who's tech policy reporter at "the new york times. what do you think about this david, we'll start with you. is this a big deal and what does this mean for the future of tiktok >> i think it's a big deal because it points to the potential of consumer reports. you referred to the review of the acquisition that led to the product. it came at least after congressional concerns were raised we're also seeing consumers raise concern about the censorship issues you mention

and now about the privacy issues through the class action lawsuit. what exactly happens with the sui suit remains to be seen. it's one thing for the government to be concerned, it's another for the consumers to express it as well. >> this is one consumer expre expressing this, sarah if you look at the number of teenagers using this, this probably doesn't hit their radar screen will this have an impact >> it probably won't have an impact on the mass amount of users right now. they're so young, not thinking about privacy. what's different is the girl alleges that ticktock was creating biometric data about her, that tiktok was creating a profile about her even though she never uploaded photos. those are allegations i've never heard -- >> they don't back up the allegations at least for now i haven't seen proof of that have you >> i haven't seen any proof of

that the fact that there are brand-new allegations, that's the point. kids won't care this is a legal headache and regulatory headache. >> david, this gets back to the point, will this be something that the regulators take and run and what kind of headaches will that cause down the road >> the lawmakers who are concerned about chinese tech companies, whether it's huawei, tiktok are willing to grab on to any concerns and amplify them and build their case around them regardless of whether or not the technical specifications are going to back it up or they're public i think we'll see that happen here. >> sarah, i wonder if it's a security matter as well. i think of the types of things kids could put on tiktok if you take a long enough view, ultimately these things could be used for blablg purposes or extorsion purposes i don't want to be alarmist but if somehow this is connected to

the chinese kind of super structure, isn't that a concern? >> it's a huge concern and you should be alarmist we saw when snap chat was first introduced there was a lot of concern with kids sending naked pictures and child pornography allegations. this is something that happens the issue that you're addressing, could another state hold these photos and sometime down the line if someone runs for office withdraw them, absolutely that's why lawmakers want to get to this early. >> president trump's re-election campaign says that it's going to be barring bloomberg news journalists from attending the president's rallies and political events it's a response to cease investigating democratic candidates as owner michael bloomberg campaigns. president trump weighed in on twitter, didn't mince any words. he wrote mini mike bloomberg has instructed his third rate news organization not to investigate

him or any democrat but go after president trump only it's not okay. sarah, what do you think >> well, this is a huge problem, one for bloomberg news we knew that michael bloomberg stepping into the race was going to conflate their editorial responsibility, call it into question now it's become a national spat with the president and it will continue to carry on unless they can address this one of the things you keep hearing is there are other billionaires that have no problems with their news rooms covering them, like jeff bezos and the washington post. this policy, a long standing policy adopted for the campaign is going to come back and hurt the newsroom unless it can defend itself from these types of attacks. >> david, i have a lot of respect for michael bloomberg, great mayor, perhaps greater business person. i was on the other side of that bloomberg press asperatus. i was on the other side of that.

do you see anything inappropriate with the president drawing a line with bloomberg news here? >> well, you know, i think more broadly it's really a part of a trend where the president and the administration have been willing to push back on news organization and push back on channels of information and brand them as bias we've seen this with the social media platforms as well. the bigger picture is less about one news organization versus how the president and his campaign brand either the world of media or the world of sort of -- >> you can't even comment on this -- you just back to just trump hates all? you can't find it in yourself to say this might not -- even sarah had no problem you can't find it in yourself to say maybe this isn't such a great idea to not cover bloomberg and democrats but to investigate -- you can't even bring yourself to say that because you're at "the new york times" seriously? >> regardless of where i work, i think the bigger picture -- >> bigger picture.

>> okay. never mind i don't expect you to say it. >> how about the one example where the news organization is actually named after his competitor >> well, trump bashes the press. >> we are out of time. >> david, sarah, thank you both for being here >> coming up, futures tumbling this morning >> there's no problem with the mainstream media it might wait until after the presidential ectn.leio futures off the lows we'll bring you full coverage next donald trump failed as a businessman.

he borrowed billions and left a trail of bankruptcy and broken promises. he hasn't changed. i started a tiny investment business, and over 27 years, grew it successfully to 36 billion dollars. i'm tom steyer and i approve this message. i'm running for president because unlike other candidates, i can go head to head with donald trump on the economy, and expose him fo what he is: a fraud and a failure.

break news this morning. president trump says it might be better to wait until after the 2020 china deal. mcdonald's chicken has a break.

>> tom farley who is in for andrew he's the former cnbc contributor. >> breaking news this morning. >> strike a deal with china. >> yesterday morning, a couple hundred. he joins us.

>> in some ways i think it's better to wait until after the election >> i just tell you >> the president said in some ways >> they are slow walking the deal to get there and now the president is saying he may also want to wait until after the election i asked the president yesterday about all of this and whether or not signing that hong kong bill was making it more difficult to get to a trade deal with the

chinese. the president said it doesn't make it any better but we'll see what happens i also asked kellyanne conway, the president's adviser at the white house if the president had made a mistake by announcing the so-called phase one deal back in october when he did and announced it was all but complete and papered kellyanne conway said, no, the president didn't make a mistake and that was the right way to proceed. she said he didn't put himself in a bad negotiating position by announcing the deal was all but complete before it was actually inked on paper the president said there would be a signing ceremony with himself and president xi jinping. not clear when that would happen and also not clear whether the presidents comments reflect some underlying breakdown in the trade talks themselves or just an indication that he's not sure where it would land.

>> eamon, it's december 3rd today. we are 12 days away from the december 15th deadline what do you hear, what do you think will happen when we get to december 15th? will the additional tariffs get put on >> watch this space, right we don't know. you can imagine that if the president is frustrated, that he might go forward with those tariffs but all of the political incentives are the other way that last traunch of tariffs could have political ramifications. there are some advisers saying he better get a deal of some kind before november 2020 before the election cycle heats up. there's question about the timing would he announce some suspension of that or would he announce he's not going forward with that? we just don't know politically that would be his incentive but the president takes these things personally as well as politically. he's said what he is looking for here is a total rearrangement of

the trade relationship between the united states and china. that is more important to him than the politics. >> same thing from one of our guys based in china. china is over there talking about decoupling, eamon. they're ready to decouple, too like a cold war. >> uncouple. >> conscious -- i love that. >> we're all self-partnering. >> you may be. >> that sounds dirty >> i'm a married man. >> did i congratulate you on a panthers win are you a redskins fan or not? >> no, no, i'm from philly, man. eagles are having a tough year. >> that was horrible. >> we did win the super bowl once in my lifetime. >> what a backhanded way to bring up that loss i did not try to do that for you. >> for once. >> that was hideous. >> for once. >> a lot of things happened on sunday that will never happen again. i think the bengals -- thanks, eamon. >> you must have had a better weekend than i did.

>> impressive. >> what is that on 500 >> 20%. >> thanks. >> and it's not even a year yet. analyzed that's a 40% gain might want to pay attention to what i do. >> or not. let's bring in a few voices to talk about everything that's been happening with china. steve liesman is here and cnbc contributor michelle caruso cabrera. >> in studio. >> marty. >> michelle, you've been following international politics for a very long time how would you read it at this point? what do you think is happening >> i've long been convinced that you actually don't get a deal until after the election and now i'm getting more convinced that you maybe never have a deal until after the election i'm not convinced the politics were ever in favor of trump getting a deal done before the election there's a lot of consensus thinking that this would be a big deal

the democrats are just as hard as china as he is when you look at them on the trail the politics in china for a long time with xi jinping, your guest he had on live, anecdotal evidence talking to people on the street, the united states is treating us, trying to keep us down, the internal politics don't suggest there should be a deal so i'm not convinced with the stock market doing what it's doing, the economy not faltering, president trump feels he has ammunition to keep the situation exactly as it is. >> steve, earlier when we spoke with jim mcgregor who is in beijing on this, he brought up the point that when he talks to people in government, people in some of these negotiating positions -- >> even uber drivers. >> there's not a real sense of urgency on the side of the chinese to get something done. what would happen to the economy if these additional tariffs come on >> not good things i mean, there's not anything you can see that's been positive as a result of these tariffs that are out there. in general, fourth quarter growth running about 1.5%.

you did 2% the prior quarter most economists feel as if you've taken away the benefits of the tax cuts that you've seen ceo uncertainty -- sorry, ceo confidence decline you've seen political uncertainty rise president trump had the ability, i think, and initially was the president for business, and i think he's sort of undermining that in a big way in the sense that some of the uncertainty that's out there has made business investment decline quite sharply. he had a run -- a good run of manufacturing jobs -- manufacturing job growth that's come off. a lot of the things that the president wants to happen and actually took steps to make happen have been undermined by this trade war i just want to agree with michelle here. i wrote a piece in april of 2019 that said brace for forever trade wars he's called himself the tariff man. he's advised by a man who is a

proponent of tariffs as a way to fix -- >> peter navarro. >> peter navarro, things that are wrong with this country. if you look at jim bullard, he has a framework which is that the feds should not be banking on trade wars going away he sees it as part of the landscape for a while and that's why he believes in lower rates. >> marty, why don't we talk about what this means from the jobs perspective to this point jobs have been doing incredibly well. you do see this as a situation where it's a lot easier to get hired but if business confidence is hampered by this, what will that mean down the road? is this a concern for you or do you think the economy soldiers on >> especially for small businesses, businesses under 50 employees, most of them aren't impacted by the tariffs because they're more regional businesses those who are, 25 to 30%, they're impacted a great deal. they don't have the clout to change their supplier if they want to get out of china or something. you do see a big impact for

those who are impacted it depends on the sector it tends to be a minority. they will have a bigger impacted those who aren't impacted -- >> let me throw this up as a jump ball to the table we have seen business spending, capital expenditures not growing at a rate that's expected. ceos are nervous, waiting to see what happens is there a point where we have to invest anyway because there is consumer demand what happens in the sort of give and take >> first of all, i'd say overall a lot of the forecasts for a rebound next year are predicated on trade truce so i wonder how those forecasts are going to be recalibrated i think that's one piece of it to your specific question, i think you get to a point where, yeah, you're going to have to say this is -- these are the cards i'm dealt. in fact, i think the market and ceos have to get there the place jim bullard is this is not a one off thing. >> right

got to live with it and as a result you're going to make your plans. let's plan this is the new normal. >> my next study is going to be one that looks at whether or not -- i suspect this is what happened the sensitivity of the market to trade headlines, i think it has to be a bit -- >> i'm surprised all you are saying -- >> i think it's come down. >> 95 point decline based on the fact that the president said -- >> you're suggesting a year ago it would have been a much bigger drop >> 95 points, that's nothing when you start looking at this as 1/3 of a percent on futures. >> i am shocked to the degree that the market had continuously reacted to all of these trade headlines when, yes, it raises uncertainty, et cetera, but when you look at the actual numbers on the impact on the economy, yes, certain small businesses are hurt, but at a macro level it was never going to have that huge an impact it was more what are the secondary consequences. >> retailers kind of dodge and make sure they're not raising

prices. >> michelle, they've turned out to be worse than expected. in other words, the dollar value as estimated or modeled was minimal, .1, .2, but the idea you'd have this retrenchment in spending was not the idea that you would have falloff in the trade war members of the federal reserve and the imf as well, that a big piece of the global slowdown is related to this trade war. it comes in at two pieces. >> do we know, michelle, what the impact is to china of the tariffs that are already existing, potential new tariffs? we're looking at it have a very american perspective how much pressure are they feeling? >> that's part of the global slowdown that we're talking about china as well. >> to tom's question, it's hard to separate this from all of the other things that china is doing. i would say incorrectly. going backwards, right the subsidies, the state-owned enterprises is a big one >> i'll tell you the number. the number is 53 billion

their imports to the u.s. are down by 53 billion compared to the same period last year. our exports to china are down by 14 billion so there are 53 guys in china, men and women, who are doing a billion dollars less business because of the tariff. >> we know that we've been waiting forever for europe to bottom out that may be exacerbated by the trade war starting here. >> they have their own issues. >> multiple issues looking at anything in a vacuum without considering all of the other things, then it all comes down to whether you think now is the time to confront 30 years worth of wto abuses, even cramer are like this on this entire issue. >> joe -- >> if we can be at 3.5% unemployment and new highs in the stock market, why not take on china right now >> what if you think taking on

china is a good idea but you completely disagree with the means. >> i've heard that for 30 years. >> no, you haven't >> yes, i have. >> joe, that's a lie china entered the wto in -- >> how are you going to take them on? >> you would take them on with allies. >> you always hear that. >> why not >> because that's what democrats say we would have done. >> republicans don't say it. i'm a centrist republican on trade. what you used to believe before trump came into office. >> what he said today that surprised me the most is they had anticipated that this was coming the chinese knew they would eventually be butting heads. we've been pulling the wool over for a while. eventually we knew this was going to come to a head, but there are two different systems. they go up head to head -- >> becky, the point made earlier, the biggest thing with businesses is trying to hire the right people they're not as concerned about the trade wars

what they're concerned about is i can't find the people to fill the jobs what we're seeing this month, for example, is wages are increasing. >> that's a good problem. >> that's a good thing to have the work that is increasing. hours are the highest increase we've seen in weekly hours in three years. wages up over 3% across the board all sectors, all regions the biggest issues for businesses is can i hire the right people -- >> is it that i will go ahead and pay them the wages because the demand is here >> i have to keep people it used to be minimum wage increase is driving the wage increase now we're seeing all levels, the fifth quintile of wages is going up as well. >> just in the last two months >> just in the last two months you're finally seeing wages increase because they have the demand, which is a good thing, and they have to fill and re -- >> do you think the stock market would be up 40% without -- >> do you want an answer because i'll give you an answer? >> you didn't say 40.

>> what are you going to do, joe? >> you say 40. >> the president has now taken a page from the way other administrations dealt with the china trade problem. the phase one concept is almost precisely the way other administrations have partitioned problems with china into much mother mana more manageable pieces the way they came in and will solve this is one huge problem through one fell swoop has ended up, the president has learned, to be wrong. and now they're doing it in a way that is much more in line with the way other administrations, republican and democrat, have confronted it. >> confronted it but never got it. >> that's not true, joe. >> did they get a phase one deal what if it's followed by phase 2. >> i highly recommend everybody go watch it cnbc.com what struck me was the bidding for the tunnel in stockholm.

thechinese came in and undercu everybody. >> because they an because everything is subsidized by the state >> that's supposed to be handled by the world trade organization. >> the world trade organization is starting to handle things like with boeing, the big one they got the united states got over the subsidies to the air manufacturers there. maybe the wto does start to take on some of these things. >> maybe it has already. we win 90% of our cases at the wto. >> when we go ahead and say we're going to -- >> when we go and run a case at the wto we win 90% of the cases. we lose 90% of the case. >> but the bidding process that he explained exemplifies how china on the international stage -- >> needs to be delicate. >> agreed. agreed >> have you seen the horrific cpi fears. have you seen it pass to consumers. >> joe, let me ask you a question. >> have you seen it?

>> we'll ask marty we know where you stand. >> marty, you cut him off because he was saying good things he was saying good things, marty, we don't want you here. >> from the very beginning, joe, i said tariffs were likely a disinflationary impulse. >> where are we seeing it mainly in the investment? is that your biggest problem you used to do the market's now down a trillion, it's down 2 trillion now we're up 20% and you stopped talking about the stock market. >> how can i talk about it when you keep cutting me off. >> my favorite thing i've heard is marty saying that wages across the wage earner spectrum, including the fifth quintile are growing 3% plus. >> right >> and hours worked are up the best we've seen in thee years. there is demand. the business is pretty strong. frankly, business equipment investment is up in the last -- so we're starting to see businesses invest j.

>> is up >> just in the last month. >> which, by i way, i reported. >> there you go. >> you missed that, joe. you missed that. >> on your 3 a.m. report. >> no, we were 7 a.m >> steve, thank you. >> it's always a pleasure. >> you have that look on your face. >> michelle, thank you. >> i was smiling because it came back >> and i'm smiling as i take us to a break before we head to the break, you'll see that the dow futures are down by 106 points s&p futures indicated down by 10 the nasdaq down by 34 after the market turned in its worst performance in two months yesterday. that was a decline of less than 1% but we'll continue to watch this today. when we come back, apple celebrating the best apps and games of 2019. we will talk winners and disappointments when we come back each day our planet awakens with signs of opportunity.

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apple unveiling its favorite apps last night. joining us is todd hazelton. todd, this is an event that is brand new. >> brand new. >> that you put out a press

release and say that's enough. why do you put out a press release? >> i asked that specifically apple said in the past they would have a list that they would put out in a press release. best music of the year, podcasts, other things they felt it was over shadowing the apps one of the things i found interesting is these aren't the most downloaded apps, not the apps generating the most revenue. >> how did they pick them? >> so they go through this crazy process i learned about wherein side the app store they have a whole 130 editors writing posts and reviews that come out from october to october that team gets together and picks nair favorites among them. it doesn't have to be popular apps like tiktok, user experience what they call magic because it's apple and other

things then they say, okay, here's our finalist they bring it up to phil schiller, the head of marketing, and he decides whether they get awards or not. >> he can blackball somebody >> apparently he can that's what i learned yesterday. they might have two or three apps and he can say yes or no. then it comes to awarding the developers, they bring them into an event that was new last night, cocktail party sort of environment, and we got to see the apps normally this press release would come out it would be a list of sometimes obscure apps i hadn't heard of some of them but we got to sit there, play with the apps with the developers, get demos, talk to them, learn a bit more this is important for one really big reason apple is facing antitrust concerns about how it places apps in the app store so if you search for, say, a certain app, maybe apple's app comes up

first. i asked some developers what they thought one gave me a nice response i wanted to read he base basically you think -- this is the spec tre app if you think of this as business you're about to run into disappointment he worked on an app that apple copied and he said, i kind of deserved that. these are apps that are unique, we don't see everywhere else that aren't being copied and apple thinks it's worth highlighting. >> apple game of the year, skylight >> it's a fun, rural game where you explore the world. i was playing it last night. what really surprised me was it felt like i was playing on a console, like an xbox or ps 4. the graphics were impressive they support game pads which they didn't until i.s.o. 13. you can run around and play with

other gamers it was neat. one of the things i would say is this is a more obscure app, maybe one i wouldn't have stumbled upon or written about had apple not highlighted it one of the things i noticed is they highlighted games with good sound tracks >> music matters. >> yeah. you have another one or two we can highlight that people may not have heard of? >> i liked spectre that was the number one one. i took a few photos. >> this is a camera. iphone app of the year. >> camera app. >> it takes long exposure apps. >> this picture on screen is not doing it justice i don't know if you can get a closeup of what you're looking at take a shot of this one. turn it here to kyle. >> normally a professional photographer would do. that's long exposure shots i took pictures outside in times square it removed all of the people from the picture

>> can we do that in real life >> you can look at traffic, the lights of the cars are kind of blurring by. you can take cool pictures like that something unique apple doesn't have. >> we're totally out of time you set this up. the guy in charge of marketing has final say on what this has. >> yes. >> they're trying to get out of antitrust concerns that are being brought. do you think this is being used in some way to make happy the guys most likely to speak up and say something? >> i do think so in some ways this is saying, hey, we want the developers to get in front of the press. >> this is for you. >> yeah, this is for you apple's revenues are up 8% for the 12.5 billion in revenue services business. so that's a big business for apple. it needs to keep the people happy. i think this is an event we'll continue to see. >> thanks for coming in. >> by the way, you can read more about his apple app story on

cnbc.com when we return, your latest corporate headlines. the futures have been under pressure dow futures down by 101 points "sawbo wl rhtacquk x"ilbeig bk.

a couple of corporate headlines. being bought by ak steel cleveland cliffs shares now hold u.s. gene therapy company adentes therapeutics agreed to a takeover by astellas the deal is worth more than $60 a share. and -- >> latin root of audentes. >> i took four years of latin in case i moved to latinia. you know what i remember agricola, agricoli quid pro quo

but now i use the word bribery because it polls better. dow component issued a 2020 adjusted earnings outlook that falls largely below consensus forecasts. it gave an upbeat 2020 outlook atlanta businesswoman is set to become an interim u.s. senator. brian kemp is expected to pick kelly loeffler as the ceo. she's the ceo of a bitcoin company. >> a very close friend she will be -- she's an excellent pick she will be -- look, it's time for the republican party to let more women in. i think there's seven women in the u.s. senate. and the real question in this seat -- this is an important seat think of georgia senatorial seats. historically they've been quite democratic senator nun, miller, so on and

so forth >> georgia democrats. >> georgia democrats believe me, sam nun is different than -- >> same as miller. >> they need to win. this is only a one-year appointment and i think she'll be a great candidate >> republicans have some women, tom. we can use them in every party. >> not enough. not enough. >> on boards and -- >> not enough. >> so you specifically said the republicans in kindof a weird way i thought so -- >> yeah. >> you think republicans more than democrats >> yeah. i think there are 17 democratic women in the senate. >> in the senate >> he was just talking about the senate >> i was talking about the u.s. senate. >> by the way, audentes comes from a latin word audens which means daring, venturing, risking.

ready for battle. >> i don't think i ever -- yeah, that may have not -- >> crossed your -- >> portos, agricola is a farmer. that's about it. there are some legal terms, i guess, right, quid pro quo >> i knew you were going to say that. >> a lot of our segments go on ad nauseam. >> let's end this one. still to go on "squawk box." president trump saying it might be better to wait until after the 2020 election for a trade deal with china. that has the mashts on edge somewhat this morning. futures are down but by just under 100 points dow futures down by 98 points. higher education being put to the test with college closings on the rise, is this a sign it is brewing. >> the elon musk defamation trial begins today pedo trial "squawk box" begins after a quick break.

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i have no deadline, no in some ways i think it's better to wait until after the election you want to know the truth i think in some ways it's better to wait until after the election with china >> for more on the president's comments about possibly waiting until after the 2020 election to strike a trade deal with china, we're joined by eric knudsen, are we pronouncing it correctly? >> yes >> why have it if you don't -- >> got to use it. >> be proud, say it loud, say it proud. you changing anything based on the latest nuances to the deal, what we're hearing from the president? >> no. our expectation was that if there was a deal it would be a skinny or light deal it was probably going to disappoint relative to what was priced into markets especially

the latest and in 2020 we're going to have to look for other drivers. we are looking for a handoff we need to see businesses start to invest instead of relying on the consumer to drive the economy. >> right do we need a china resolution for the economy and the stock market to continue to do well? >> i think most of the potential damage has been built in. >> has it been significant >> some to the u.s. >> modest? >> hit on gdp. maybe 25 to 50 basis points negative on the u.s. higher in china. biggest damage was collateral damage on europe other major exporters, japan, south korea. u.s. and china have largely reconfigured and restructured to prepare for and be positioned for kind of an ongoing lack of

trade peace, let's say, as opposed to conflict. >> what about this next wave of tariffs? is it linear another 25, 50 basis points in the u.s. and 50 to 100 in china? >> so you look at the incentives for the current administration they do not have an incentive to add another tariff on to december 15th to create more volatility we think of this administration as having a volatility budget associated with trade conflict they can spend someof it but they're not going to want to spend a lot of it in creating another negative december like last year. the big risk we would say would be their escalation with the chinese which we don't think is likely neither side is strongly insented to create volatility although we don't see strong incentives with the grand bargain. maybe later than what we were initially anticipating the big question would be a pivot to europe or broadening the trade conflict there are some rumblings. >> you gave the counter factual

for the gdp. there hasn't been a trade war. what do you think it would be for the stock market what do you think it would be for the unemployment rate? what would it be for wage gains? so would the market be up twice as much? would unemployment be 2% would wage gains be 7% some things are at historically low levels like unemployment other things are at historic highs like the market. are you telling me this has been a really negative thing for the united states, the trade war >> certainly if you translate those numbers into earnings and apply current valuation on the stock market then, yes, the stock market could be somewhat higher based on earnings growth this year which are going to be flat. >> could be 30%. by the end of december could be up 30%. >> what if earnings growth were 10%? >> might contract. >> it's hard to put the -- just hard to imagine. >> exactly

>> certainly -- >> also i wonder a big part of that is low interest rates, right? >> we've had that for 15 years. >> if the economy was slightly better -- >> looks like they're not going up any time soon i think what jim -- jim cramer made a point yesterday, really interesting. just the idea if you think prices are going up here because of multiple expansion, because people are willing to pay more for the same thing, maybe you should think again he's concerned for the short term. >> indeed, that's why we are cautious right now for equities. starting to look for opportunities over seas. we pulled back from non-u.s. stocks at the end of the summer. a thesis where you're owning stocks because you expect multiples to expand, it can be more speculative

it certainly can we haven't had that late cycle kind of exuberance blowoff >> you think that there are quantifiable impacts on earnings per share based on the tariffs >> oh, absolutely. >> really? >> yeah. >> on the big multi-nationals? >> you look at what corporations have -- just listen to the cfo and ceo comments. >> they like weather, too. >> look at ceo confidence. >> you think there would be more investment >> more. >> really? >> the u.s. economy has been driven by the consumer cap exhas been sliding certain industries it's been down you take away the uncertainty, you would have seen greater business outcomes and the u.s. economy is in good space when you look at consumers, unemployment, consumer spending. in 2020 we need to see handoff from consumers, fiscal policy to business investment. or else the risks of recession

increase. >> eric, thanks. >> pleasure. when we come back, a breakdown of what's been moving this mniorng including some of the fang stocks getting downgraded "squawk box" will be right back.

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welcome back to "squawk box. i'm dominic chu. we have a small slate of analyst actions. coverage initiation for shares of facebook. they're off half a percent roughly 21,000 shares of pre-market volume. they get initiated with over weight ratings and a $230 price target by analysts over at pipe perfect javaheri they elected lower trajectory of expenses they're sticking with facebook as well as recent pr woes. next up we have shares of alphabet down fractionally as well just around 3,000 shares of pre-market volume. the parent company of google and youtube is getting started they've gotten over weight and a $1500 price target they like the company's positioning within a lot of different areas for growth they could see some up side long term for initiatives like waymo

self-driving cars. netflix. citigroup is switching the analyst coverage of this stock as a result the new view there is a downgrade to neutral and a $325 price target. they think wall street estimates are too high they see some subscribers as lowering or some of those costs rising, becky. off 2% >> thank you for the update. when we come back, is a college closing crisis brewing scott cohn has a preview >> reporter: becky, we've been talking for years about student debt this is the other college debt crisis, the colleges themselves, particularly small liberal arts schools. we're going to have some pretty startling numbers coming up but also we'll visit this school in ohio where they think they may have found a sutn.olio that's coming up when "squawk box" for a tuesday comes back.

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students aren't the only ones crushed by debt some are going out of business scott coons joins us now from one school that is determined to buck the trend hey, scott. >> yeah, they're not going to go out of business here, joe. this is hiram college, small liberal arts school 40 miles outside of cleveland

their answer is to change the definition of liberal arts these colleges are closing left and right according to moody's they're expecting 15 colleges when all is said and done to close. that is the most in years. three times the rate of 5 years ago or 10 years ago. in fact, moody's says 1 in 5, 20% of small private colleges are in what they call fundamental financial stress >> very competitive environment out there and so a high cost model, small class sizes, high fixed costs and it's posing financial challenges for them. >> so here at hiram they say they saw this coming a while ago when they were trying to refinance their debt they're doing the new liberal arts they've done away with the less popular, career oriented like religious studies. they're moving to things like career oriented things like

criminal justice, requiring students to do internships before they graduate >> we looked at the graduation requirements, we looked at technology, we looked at the 21st century skills set and mind set. >> they have about 20% of the faculty over the last several years, a lot of it through attrition as they continue to try and retool, but they feel like this is a model for the future and the rest of higher ed, guys, will be watching. >> scott, thank you very much. for more on the sustainability of high college tuition, let's bring in our guests. joining us is neil mcincludes can i, cato institute and andre perry. gentlemen, i think we can all agree that college tuition is soaring, whether you're looking at private colleges or public in some cases what would you do to try and bring down costs

andre, what do you think >> yeah, the first thing we really need to do is do a reset. i was a college administrator for years and i've never seen a college tuition hike a president didn't like. when something went wrong in the college of natural sciences, they lifted tuition for the entire student body. at some point we need to control costs and set caps or limits on how much you can raise tuition that's why i am supportive of states that are trying to bring more transparency to the college financial crisis >> andre, how do you think government subsidies for loans has impacted tuition increases making it very easy for students to borrow money even if they're not otherwise able to afford it? >> you called it the -- because of there's so

much cash in terms of the federal governmental loug folks to take out loans, colleges acquiesce. and that's a core part of the problem. certainly there are other issues there's wage stagnation and other issues, particularly with low income black and brown communities that -- where they're not able to afford rising prices. but as long as colleges can raise their tuition, they will, and that's the problem. >> neil, how would you address it >> that's absolutely right the evidence is pretty clear colleges are always looking for money because they always see something they think is important to do and as long as the federal government supplies lots of loans and also grants but the loans are the biggest problems and tax credits and lots of other aid to students, schools will look at students as a source of fund being

colleges are sort of caught because students with a lot of money available to them often tend to demand from a school that's why we see water parks in some colleges. and a college often feels they need to supply those things and they don't get the students and those small liberal arts colleges have the toughest time doing that. >> do colleges have to go through a crisis in order to fix that i spoke to a president of a catholic college who said he expects half of the catholic colleges to close. >> neil? >> a crisis tends to focus people higher education is no different. if they can continue on doing what they've always done, they're going to tend to do that they need some sort of shock to do that. >> neil, andre, want to thank you both for your time good to see you. >> thanks. >> high end gyms. >> you need a monorail >> coming up, futures dropping

on president trump's trade comments that story next. ok, ready sweetie? nice, you ready to go again? are you ready, dad? i'm ready. imagine if your life insurance could help you live for today and safeguard tomorrow, so you're ready for anything. life insurance designed to protect generations of families. that's the power of pacific. ask a financial professional about pacific life.

>> after the 2020 election

>> we're talking about the funding security the nba is down. cord cutting involved. the final hour of "squawk box" is now >> you know what i sneen good morning. welcome back >> every compliment comes with -- >> welcome back to "squawk box." live from the nasdaq market side you're a natural tom farley's in. andrew is off. >> tom farley. hi, andrew i'm doing my best. >> joe says we're the right person.

>> right there we need that component the whole yin and yang thing becky is sitting and moderating. >> somebody said a referee had no joke. mailed it to the office. >> chairman and ceo of far point and cnbc contributor down triple digits they got worse last time i looked at 173 on the dow. down 56, 57 on the nasdaq, s&p down about 16. treasury yields at this point, about 178, that's trade. remember we were back to 180 184. >> things were going well, 185 wrench gets thrown in the works and then we go back down by the way, doesn't take much for you to be left. >> to be left of you >> yeah, right >> don't feel bad. >> it's a high bar. >> exactly. >> it was president trump's comments on the possibility of a trade deal with china, the idea that that trade deal could be delayed until after the 2020

election that was what first hit the futures this morning eamon javers joins us with more on the tiktok and how this went down. >> reporter: that's right, becky. the president is in london he's traveling for a big nato event. he was taking questions from reporters and was asked about this idea of a china trade deal. he suggested that he might want to wait until late next year here's what he said. >> the china trade deal is dependent on one thing do i want to pick it i have no deadline, no >> mr. president -- >> in some ways i think it's better to wait until after the election you want to know the truth. i think in some ways it's better to wait until after the election with china, but i'm not going to say that i just think that. i just tell you. >> the president saying, you know, in some ways i just think it might be better to wait until after the 2020 election. not clear here whether this reflects some underlying problem in the ongoing negotiations or if the president is just sort of ruminating about which way to go the president announced the

phase 1 deal as he called it back in october. he suggested at that time that it was all but done. he had the chinese officials in his office at the white house and said they just needed to paper it the white house never though put out any specific details of what was in the deal that the president said they agreed to back in october. now the president suggesting that there may not be a deal until after november of 2020 and i asked kellyanne conway yesterday at the white house, the president's advisor, whether or not the president had made a mistake back in october to announce a deal before it was finished she said no and she asked whether or not we had any indication that there was a deal or not she seemed to be suggesting yesterday there was something going on behind the scenes that we simply couldn't see the white house had no obligation to tell us. today the president suggesting here that he might want to wait until 2020 we'll have to see what the rest of the white house economic team says during the course of the day today to get a sense of whether this is just the

president sort of chin scratching here or whether this is the president suggesting that that might be where this lands no deal until after the election >> all right eamon, thank you very much >> you bet. >> let's talk more about what this latest trade deal means for the market joining us is jim luria. and cnbc senior markets commentator mike santoli here as well mike, what do you think? we watched this this morning futures went from up to down to not down so much to all of a sudden down by 170 points? >> it's a perfectly handy excuse for a pull back. we went up 9%. no pull backs from october 8th or something like that until a couple of days ago you were right for kind of some disturbance in here to the bull case the very, very gentle consensus bull case was de-escalation on trade. we have an inflection point. both of those things got challenged, the ism number i think exacerbating factor. i don't think it's possible for

the markets in any systematic way in any kind of rigorous way to discern what the meaning of the president's comments were. it could easily have been one of his normal conversational switchbacks. it could have been a signal he was getting tough. it could have been a signal maybe putting china on -- who knows but the point is that the premise of de-escalation and a rubber stamp deal and no tariffs december 15th is at least a challenge. >> don't you get nervous when he feels like he's got some house money to play with >> the pattern has been there. when the markets had a high and -- >> 25 percentage points on the s&p to work with, i can get back 3 or 4 to force china, you know, to force their hands. >> that could be although i would say that works better if the rest of the economic numbers are cooperating and you don't actually have it snowball into a larger field

>> everything wasn't down. we're up 1%. >> it's an up side maybe the rally. >> trying to get there the negotiations that lands us back there october 10th some nervousness in the market all the short positions in the vix. >> there is some risk in the market >> just to shake out people.

i was hoping that. powell should be lowering rates. some have even noticed business as usual. >> short positioning on the vix. shortening vix is usually a great play up until the moment that it's not and you lose five times more than you make i don't understand that trade how everybody piles into it so willingly but there was some complacency. >> mike, we have two weeks until the december 15th deadline. >> tell me what it's going to do in the next two weeks. we got up to the point in the market where relief from the fact that the economy was in a 2% mode became just sort of the

assumption as opposed to the up side surprise. i do think that if we get a new round of tariffs from december 15th the market is not going to take it particularly well. >> mike, one more thing, too if the lingering trade talks gives the fed ground cover to stay dovish, so i don't think it's all bad if things linger a bit. >> no, i agree with it the market seems to really like the idea of three cuts and then the fed goes on hold it fit this really tidy script from the '90s. if we're talking about a little more open ended easing cycle to start that soon, that's a little bit of a different story line. at a time when we really need to see the economic numbers coming back from early october till friday you had apple at 140 billion in market cap microsoft in 100 billion in market cap had nothing to do with exports and china trade. it had to do with sentiment

getting better and people thinking the economy was inflecting and willing to take on some risk yesterday the nasdaq was the underperformer >> market was up 7% since october to your point. we've had a number of guests on the last two days that have said basically no chance that the new tariffs get put on december 15th that concerns me that concerns me. >> absolutely. the baseline assumption. >> if those do get put on, how much volatility are we going to see? >> all of a sudden we're on slowdown watch again what's your economic numbers looking like what's china's economic data i think we're back on the same treadmill if we get the tariffs. if we don't get the tariffs and all of a sudden they're already in the base and we operate on a year over year clock and so that's not a problem if you don't get new tariffs in there we can easily absorb it. >> thanks for coming in. great to see you.

>> jim, thank you for joining us. coming up, a big league ratings battle we're talking about the differing fortunes of the nba and nfl and why cord cutting might not be hitting everyone equally. as we head to break, take a look at futures headed down 190 headed for 200 perhaps stay tuned, you're watching "squawk box" on cnbc one... two... and three is how many times carson has beat cancer. yup! but carson is alive today thanks to a breakthrough treatment pioneered at st. jude... one that we shared freely to help save kids near you. st. jude is on a mission to cure childhood cancer. four... ever. high five! give thanks for the healthy kids in your life, and give to those who are not. donate now at st.jude dot org or shop wherever you see the st. jude logo.

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welcome back to "squawk box," everybody. we've been watching the futures. they're taking a turn for the worse. this is the first time we've seen the dow down by 200 points. nasdaq off by 69 and s&p off by 20 the nba season is reportedly off to a rough start for viewership as of november 22nd the average number of viewers watching games on espn and tnt was down 18% versus last year yikes. that's according to sports media watch. meanwhile, nfl viewership is up.

last thursday's cowboys/bills game saw the biggest audience for a thanksgiving contest for 20 years unfortunately for jerry jones. anyway, with more than 32 million viewers. cowboys. right now we want to take a look at the different ways cord cutting is hitting the american sports leagues joining us is patrick rich scott davis, senior sports reporter for business insider. scott, welcome i don't know if you've been in studio before. good to have you. >> no, i haven't thank you. >> we were just talking off camera i haven't been watching much nba and i've been watching a lot of nfl and i watch a lot of -- i've even been watching college basketball already what's the problem i told you i think it's the shot clock. i think they need -- they just run down and shoot and run down and shoot and -- i think they need more plays and more defense. am i wrong

or is it cord cutting? >> i think it's a confluence of factors when you look at just the landscape of the league right now. i think the nba was affected by lebron james moving west he's no longer in the eastern time slot. >> there's no china hangover, is there? >> i don't know. i think they're trying to figure that out in terms of the u.s. ratings. you also have the golden state warriors dynasty, they've fallen off. >> what about the fact that kawhi sits every fourth game that's really frustrating. >> that's a topic the league is grappling with letting these players sit and rest when the games really count. not turning off fans who want to turn on a game on thursday night and watch kawhi play there's a bunch of things. zion williamson, star rookie from duke, he's out. new york knicks, not really a very good theerm on the east coast.

>> yeah, that's new. >> there are a lot of factors. it's early the nba season for a lot of people doesn't start counting until after christmas into the spring nfl is coming on strong. >> some of the best teams are the small market teams like milwaukee or even utah has a good team. those are small markets. >> yeah. yeah i think -- i think the nba would be very happy if the new york knicks turned things around. >> we're not even close. >> patrick, what's the word out in the midwest -- he's a professor, too he's got all the answers what's the real issue here, patrick? >> no, i think he hit it all on the head. >> really? >> you're talking about injuries, load management, the fact that you have some of the stars of the game that moved out to the west. kuwhi was one of the best players in the nba and he's in los angeles. all of these factors and throw in cord cutting as well. the legalization of sports gaming has helped the nfl but i

don't think it really has much of an impact on the nba because there's not as much handle there's not as much action on regular season nba games. >> i was going to say that i tried to bet on college basketball, too. it doesn't work. best to take the points. on any given night people keep it close but nfl is definitely -- that's what i would say nba may be down a little bit the nfl is up much more and i think a lot of it has to do with a lot of people on draft kings and fan duel. >> yeah. there's no question about that again, there's cord cutting across all spectrums but you've got the legalization of sports gaming in 13 states now and football you see the most action we also don't have as much discussion the last two years about player safety or politics. i think that matters you've also -- this is the 100th season of the nfl. the nfl did a great job leading up to the season, promoting the games and placing the marquee match-ups in the right time

slots. that's helped as well. >> you mentioned politics. how much do you think the ratings increase has to do with people not kneeling for the national anthem? >> i -- you know what, i think it plays a very, very small role i won't give it much, but i'll say maybe worth 1 percentage point in the ratings >> yeah. you don't think it's china at all, the nba situation where -- that was not the nba's finest moment, although they -- i think they minimized the bad effects of that to some extent adam silver got in there finally. it was going the wrong way, wasn't it? >> joe, what's so funny about that is it happened before the season started once the season started, what happened no one was talking about it. >> yeah. you figure you did -- that's a tough one. there's more fans, more nba fans in china than we have people nut states so that's -- you've got

to walk a fine line. did you write about that, scott? >> yeah, a little bit. certainly the league trying to grapple with a really unprecedented situation, a complicated problem, i guess >> so at this point -- i mean, let's get into the weeds a little with the nfl. just quickly, are the patriot -- does it hurt that the patriots are vulnerable or it helps that the patriots are vulnerable? i think it helps. >> go ahead, patrick. >> i was going to say the fact that the patriots, maybe they're vulnerable last i looked they're still 10-2. >> i know but -- >> they're a powerhouse. i think the other thing that a lot of people haven't talked about this year is when you have legacy teams that step up to the plate and re-establish themselves and say what you want about the 49ers, but the 49ers were the team of the 1980s and now all of a sudden they're with a 10-2 record, one of the top teams in the nfc i think that helps >> yeah. that plays into the patriots, too. they decided to stick with brady

and let garoppolo go out there. >> it's going to be interesting when you talk about the nfl versus the fba a l -- nba season. >> it's wide open after the warriors broke up. it's going to be interesting versus the nfl you had one people dominating people tune in for them or root against them. the nba will have an interesting test. >> as a business reporter at "business insider" do you constantly have to pretend you're talking about money and you're talking about sports? how does that -- >> yeah. >> like pretend that you're doing the money angle but really you're talking about kuwhi. >> same thing in the classroom, joe. >> we do that here, too. sometimes i feel guilty because it's so transparent. >> patriots do not look like a 10-2 pass. >> can't get gronk. >> ravens/seahawks in the super bowl. >> i watched russell last night. that guy -- you can't sack him

because you can't -- you know, you can't catch him. can't sack him if you can't catch him. thank you. coming up -- i watched -- >> ravens/seahawks, i agree. >> saints. >> all right sorry. this is you. >> sorry coming up, tariffs get personal. the u.s. says it could hit french cheese and champaign with new taxes. french government officials say they are ready to fight back oui oui. we have the latest. an elon musk today from over a year ago is coming back today to haunt him check out the futures as we head to a break dow futures down by 226 points that's the weakest levels of the morning. ladies and gentlemen, your attention please. geico would like to take a moment to say thank you to our military service members at home and abroad for all their hard work and sacrifice.

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dow down 221 the s&p is indicated down 20.5 and the nasdaq down 72 >> we should point out there are a lot of moves afoot the dollar index hit a low of 97.79. the two-year yield just hit a low of 1.556%. that's its lowest level since

november 21st. copper hitting its lowest level since november 22nd and then the dollar versus the chinese yuan spiking to a high of 7.0692% that's the highest level that it's seeing since october. cyber monday sales are expected to hit a record $9.2 billion when the final data comes in that's according to new data from adobe analytics that will be up 17% from a year ago. courtney ragan is here joining us with more on what it means, at least for the consumer. >> so far all records is a little bit softer than what was initially expected, actually, becky from adobe analytics for the full day for cyber monday. but also as expected the peak hours were really late, around 11 p.m. eastern time until midnight ultimately 1/3 of the sales came from the mobile devices. top sellers on cyber monday across the board include frozen 2 toys, lol surprise dolls, nerf

products, maddon 20, air pods and air fryers cyber monday was amazon's biggest day worldwide. that's a data point we hear over and over more than 25 million items were ordered on black friday and cyber monday combined. the two days were the biggest ever for toys for amazon amazon says cyber monday was the biggest day for fashion ever they've been pushing their apparel private label brands they sold millions more of their own devices. the echo, fire tv stick. we did see that from a lot of search results amazon didn't make the top four searched for retailers when you're going to a search and typing in amazon, perhaps you're going there directly. that's according to captify. it said best buy was the most searched for retailer. costco did ultimately surpass

walmart with a 908% increases in searches for costco versus last year on cyber monday no surprise electronics the top searched category, but it was the first time that captify saw travel searched on cyber monday. we talk about experiences over things perhaps that's part of the reason for the search. i have gifted a trip before so -- but i didn't search yesterday. i still have a lot of shopping to do. >> would be nice for santa. >> i would love it. >> today is giving tuesday after five days where we've been spending on ourselves, today is the time to give back. find the charity you care about. it is giving tuesday after all the spending we've done on ourselves, probably time to do that >> we concur with that. when we come back, it's been more than a year since a world watched a group of boys get rescued from a flooded cave in thailand now something that ceo elon musk said in the crisis, it was

bizarre, is about to land him in a california courtroom jane wells, perfect, what do you have coming up >> reporter: well, joe, when you call someone a pedo guy, does that mean you're calling them a pedophile? a jury will have to decide that. elon musk could testify as early as today the story when we come back. "um houston, we've had a problem" it's human nature to hate problems. but why is that? problems inspire us to re-write the rule books. the history books and future books. that's why so many people work with ibm on everything from city traffic to ocean plastic. from flight delays to food safety. problems even got us to the moon and back on one tank of gas. and who knows where they'll take us next.

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welcome back to "squawk box" this morning this is cnbc and we are live from the nasdaq market side in times square the futures selling off in a pretty significant way following the comments from president trump earlier this morning >> the china trade deal is dependent on one thing, do i want to make it. i have no deadline, no in some ways i think it's better to wait until after the election you want to know the truth i think in some ways it's better to wait until after the election with china but i'm not going to say that. i just think that.

i just tell you -- >> so originally the futures were up this morning on this news we saw things begin to decline pretty quickly turned down about 100 points. showed some improvement earlier this morning but now you can see things are snowballing a bit the dow futures down by 231 points this came after a decline of 9/10 of a percent. that's the worst the markets have turned in in two months. >> i just wish we really, really knew where the pain is being felt because we have both sides presented on a daily basis. >> everyone today has made it seem like this is no issue for china. they can go on forever and ever. >> you've heard the other side >> i don't buy it. i don't believe it i think xi's under significant pressure hong kong, the tariffs, declining economy. >> we forget that, you know, our per capita gdp is $60,000. china's up and coming but it's still like $10,000

they've got a long way to go their people -- >> she's under pressure from several different constituencies he's facing the hard liners who do not want him to come up with a deal. >> he's facing hong kong and somehow navigating really a country that some day has to become -- in terms of human rights has to come out of the dark ages. >> the economy has to become consumer led. >> exactly and truly market. >> do you think it's possible that the president made that comment today? he didn't say it, he just thought it >> right. >> as we just heard. >> he said he thought. >> trial balloon. >> it was one of those bubbles above his head i'm thinking wait till after -- >> do you think it was a trial balloon to see how the market would react to help him decide whether or not to cut a lesser deal by december 15th? >> i think it's more china knowing -- hanging on, you know?

i think it's more massaging it -- >> say, look, you don't want to do it, isn't the election in november does china want to wait another year with exports the way there are. >> that's the question do more tariffs get put on originally they were asking for them not to be added without a deal there's no way they're getting pulled back. if the additional tranch of tariffs comes, that could be significant. >> there are voices in his ear in the white house, we know who they are, who are saying put those additional tariffs -- >> put the pressure on. >> put the pressure on we're talking about an s&p at 31.13 is where it closed yesterday. >> we're still up 24%. >> breathing room. >> breathing room. house money in his view. yeah, okay here are some of the other stories investors are going to

be talking about today the white house just eluding to tariffs, but in this case considering tariffs of up to 100% on champaign. imports of champaign, handbags and other products from france but the nyse is worrie the burgundy $400 a bottle is enough to spend. >> 100% tax. >> that would be $800. >> that's fine god forbid for a bottle of burgundy. >> in response to france's 3% digital services tax and lands' end reported a rise unexpected increase in same store sales. upbeat current earnings. popular video sharing app tiktok has been accused in a lawsuit of interfering -- or of transferring private users data to servers in china.

tiktok as i said in the past, stores all u.s. user's data in the united states. >> could that become a sithius matter >> that discussion -- >> if that is accurate, you can imagine the u.s. government responding. >> particularly because it's kids that use it more than anybody else. >> potentially compromising. >> it's not good to share compromising information no matter what. >> kids are kids they do dumb things. >> i guess so. >> yeah. >> i guess so. even adults. >> even us >> i was thinking of bezos just don't point the camera anywhere near your privates. it's just a simple -- you know, one of the things that you wake up in the morning. today i'm not going to point the camera near -- >> good habit. keep the camera away from me. >> keep the camera away from -- >> hillary clinton might be our president. >> yeah, you're right. >> okay. good one >> elon musk will not be on stage with a new car or truck today. instead he's going to be inside

a california courtroom jane wells is in california as well she joins us with more on what to expect. hi, jane >> reporter: hi, becky we're heading down to federal court shortly. musk could be on the stand potentially as early as this afternoon in what is expected to be a fiery trial did he say uns worth was a pedophile and did he take reasonable care to determine if that was true before he said it? this is when musk's spacex sent a mini subto rescue the 12 thai boys in a cave unsworth was there saying musk could, quote, stick his submarine where it hurts he never saw unsworth on this. and then he tweeted this, sorry, pedo guy, you did ask for it bet you a signed dollar it's

true now musk later deleted the pedo guy tweet and apologized but doubled down in a series of tweets that he was a child rapist he's sued for defamation he wants to use those emails musk has said pedo guy is shorthand in south africa for a creepy old man, not a pedophile. unsworth is seeking compensatory damages of at least $75,000. that's it. meaning this trial in a u.s. federal court house is going to cost more than damages he's seeking punitive damages and he has asked, he's pushing for musk's financial records to see how rich he really is. musk says that is unnecessary. it's clear he's worth over $1 billion. is he worth $24 billion? we don't know. we'll see if they get anywhere getting the financial records

which always fascinates me mediation went nowhere no settlement so far at 9 a.m. pacific the trial starts. >> jane, that's quite a dance. it's pedo from the ancient greek is child creepy old man in south -- that's bs. we know the derivation of that world. that's child. >> your honor, i would like to dismiss juror number 12. >> oh, yeah. so i'm out south africa -- where does it -- >> south africa where he's from. >> reporter: south africa. i don't know if that is -- i don't know they'll have to present evidence that -- well, you know, other things in local cultures slang wise mean other things >> but if you look up the derivation of just the term pedo. >> reporter: of course. >> not even in a vile way, just in -- from the greek, i've got the -- i can't read greek -- >> reporter: but musk is also pushing for jury instructions to be clear that jurors can

determine whether or not he was saying something as a statement of fact or as an insult and whether that then is defamation. >> what about the emails do you think those will definitely make their way into emails. >> so far the judge is letting them in. what's interesting is unsworth was originally suing for defamation with the emails and the tweets for some reason he's just focusing on the tweets now but wanting to use the emails where musk refers to him as a child rapist as state of mind. was musk joking or being serious. >> he hired a detective to investigate the guy. there's a lot that shows this was more than a casual insult. >> is there an impact -- >> yeah, well. >> is there an impact on tesla, the business here, jane? >> reporter: so far i don't -- look, so he has to pay 75 grand? so maybe the jury has punitive damages. it's all out of his pocket or

whatever i don't see it being large enough to have an impact my goodness, with elon musk diverting things. >> why didn't he just settle >> this is so fascinating, becky. federal taxpayers are footing the bill to use a courtroom for this today over two guys who couldn't come to some sort of agreement three mediation. after it comes about after you pick a jury. unsworth is suing in court in the u.k. so there are two lawsuits going on at the same time. >> great to see you. keep us up to speed. for more on musk's legal challenges, let's welcome jeff sonnenfeld president of yale's chief executive leadership institute and a cnbc contributor what do you think? >> i think after that fabulous

discussion that the four of you might have just had, what more could people add they're dropping the emails to narrow the defamation suit just on the tweets because the emails were labeled off the record, confidential so that his intention on the emails weren't so clear to have a mass publicity the way he clearly wanted to publish the tweets because he did so. that nuance. tom asked a really good question, what's the impact on the company and -- hi, tom, by the way. and i think that that is compelling it's a distraction, as you point out. master of disstrakdion it has fear of founder issues. whether or not we're looking at facebook and mark zuckerberg or of course looking at the problems with adam neumann and wework and jack dorsey is going off but to disappear for six

months to leave both twitter and square as the ceo of two companies, we have boards that seem unable to direct genius founders and in this case until this past several months where musk seems to have cleaned up his act we had a fairly reckless person out of control that's the significance, tom, is how does a board kind of rein in these twitter tantrums. >> great to see you again. i had a question about that exact meltdown that elon had a year, year and a half ago. whole funding secured, 4/20. a board that was a bit lame quite frankly. has the company made improvements in its governance in the past year, year and a half from your perspective >> yeah. it seems that he was making mockery of the initial sec settlement which amazing, this was happening at the same time as that 4/20 stock dangling which seemed to not be based on any fact in terms of the private placement. as that melted down it was the same time that musk was coming

out with these nonsensical attacks on pedo man. joe, you're wondering what else could be a derivation of pedo. one of the producers here, jessica, said maybe he was talking about pedestrian >> a whole different area of perversion with the foot, right? they don't need -- that doesn't help that doesn't help. >> i don't understand that what are you talking about >> you know what i was also thinking of, jeff, you remember the good old days -- you remember the necks on takes and we had epithet deleted why do we know everything that everybody is thinking. why do they put it on twitter? we used to have some decorum social media -- >> this is one guy that should have hired rosemary woods to delete some things for him >> he was having a meltdown. >> twitter is so -- it's like nitroglycerin, you know what i mean when you see it you just -- >> it's crazy. self-imposed he was having a tantrum. he could have gotten himself out of this and it's completely

unforced errors. instead of coming up with the settlement, the best settlements are usually on the courthouse steps so maybe something will happen before midday today surely this didn't have to happen it's forced error. 18 days to rescue the 12 stranded soccer players and the coach. that's what should have been celebrated instead it's distracting the attention on to this we have the successful launch or perspective launch of the cyber truck with a quarter million folks putting money down to buy, fully refundable we've seen successes out there that have surprised people it was a profitable last quarter. why distract with this kind of nonsense he gets into. >> jeff, great to see you. >> thanks. you should never t-w-i ever. >> what? >> tweet while intoxicated.

>> everyone on the joe rogan podcast smoked weed. >> that's intoxication. >> under the influence. >> the rapper that was on at the house. >> also the grimes and the acid. coming out ectasy coming up. supposedly, i don't know coming up, we're going to talk market strategy and positioning your portfolio as december kicks off with a whimper on wall street take a look at this. futures down more than triple digits down triple digits twice and then some. stay tuned don't forget to subscribe to our podcast. you'll get interviews, original content, behind the scenes access look for us on apple podcasts or on your favorite podcast app and subscribe to squawk pod today.

the best technique is act half crazy. >> the biggest names in business are on cnbc. >> welcome back, everybody the cost of tariffs is piling up and futures are down on the possibility we will not see a trade deal until after the election next year u.s. is now opening the door to new taxes, targeting iconic french products as well. kayla tausche joins with us more with what is happening on the trade front. >> if you were thinking of buying a le crueset dish, you may want to do that sooner than later.

this despite an agreement between the u.s. and france in august the move is a counterpunch to france's tax on revenues of digital companies like amazon and facebook president trump this morning in london said he's not especially fond of those companies but any penalty should come from him >> there are companies, they're american companies, i want to tax those companies. they're in the going to be taxed. >> this is the second round of tariffs hitting france in two months after the u.s. targeted european products to offset illegal airbus subsidies and before $160 billion in consumer goods in china could be hit if phase one doesn't come to fruition mr. trump today said it may not. >> i have no deadline, no. in some ways i think it is better to wait until after the election, you want to know the truth. i think in some ways it is better to wait until after the election with china. >> suggested that before about phase two, the deeper dive into

the issues, but this is the first time he is suggesting that that lower hanging fruit in phase one could be at risk and certainly something, becky, the markets have taken note of. >> thank you very much >> kayla tausche in washington >> we're about 45 minutes away from the opening bell on wall street >> nervous >> i don't like 250 at the open. you know how -- >> turned around yesterday maybe we'll end the day up. >> where did we end -- >> one tweet away from it. >> where did we end? yeah, down 268, turned around the wrong way, yes joining us now to talk markets, futures point to a lower opening as steve parker head of advisory solutions at jpmorgan private bank, mike santoli was here, now he's -- he moved downtown. down at the new york stock exchange so, what's this? 500 points in it days, from 28,000 2% or so >> yeah. >> beginning of anything >> not a huge deal when you think about a year when markets

are up 25 plus percent. >> only the third. >> yeah. >> things can happen in december we saw last year >> i think the difference now is the direction of policy is much more supportive on the monetary side than it was last year that's what got people. >> let's talk about that i wonder whether that -- you buy that, santoli it wasn't trade, the fed did do a couple of -- a couple of hikes that they shouldn't are done or at least one. >> i think it was conflungs enc all of it. the momentum was lost faster than the fed was giving it credit for they did squeeze in the rate hike last year but also we were just in a liquidation mode you have a situation where you go from 20% annualized earnings growth down to something close to zero, the situation a year ago, market isn't really well set up to handle that. i think on the fly so i think, yeah, the fed getting tighter in that moment was not necessarily a helpful thing. i don't think last december has a whole lot of bearing on here,

just because the field position is different, not just the fed we have a kind of overstretched market to the upside, all it is doing is shaking out and maybe testing the basis for this last little extension of the rally. i don't think we necessarily really compromised anything about the trend that got us here except a lot of people thought just taking it as a given that we were going to have no tariffs in december 15th and that the manufacturing economy was bottoming, going to gain some pace those things right now are just slightly more in doubt in december, you have a tension mond among tactical investors, let it ride or lock it in. >> we don't have that much time before the end of the year then we got china won't be fixed probably obviously. and an election. what -- what about next year what is going to dictate what happens in january and february, which are important for the rest of the year, right >> clearly that's what's going to dominate the headlines.

the reality is really the fundamentals the positive news is you look yesterday global manufacturing pmis, improved for the fourth month in a row, tick back above 50 we have to remember monetary policy works on a lag, it takes nine to 12 months for that to really impact the economy. the pain that we felt the start of this year was the result of the tightening last year plus trade. now we have seen significant shifts from the fed, and also central banks around the world that is starting to feed through positively into the fundamental narrative. you're going to need to see corporate earnings we have seen the rally this year come from valuations moving higher i think that's pretty much done. now we need to see the earnings story come through that's what is going to decide what markets do in 2020. >> thank you we'll remember what you said santoli, we'll see you again tomorrow, i'm sure thanks for the rest of the day. nothing else on, basketball, i meant. i watch, i do. >> we all do >> let's get down to the new york stock exchange, jim cramer is standing by you called this yesterday, you

were concerned about what you were seeing out there. this morning, down 250 what do you think? >> 420, a lot of hope that the -- they were buying the heck out of it. 520, the president said what he did. the president got betrayed on thursday, the mnuchin wing, including john thornton, formerly of goldman, hank paulson, steve swartzman and henry kissinger all said we got a phase one deal if we keep our mouth shut the harder line said if we keep our mouth shut, china will roll back tariffs we're losing the upper hand. we're not going to be tough. that's what the chinese did on saturday, sunday they let the president know, look, we won't even come to the table unless you roll back the tariffs. the president feels betrayed what does he do? he lashes out. who can blame the guy. once again, betrayed by the soft liners in the white house. soft liners in the white house, they love calling the media.

they do it all the time. i don't think the president likes that either. not in favor of leaks. >> jim, we got to run so we can get to you at top of the hour, just in time >> i don't like it >> people are going to want to tune in to hear what you have to satoy day. thank, jim see you in a few minutes "squawk box" will be right back. and there are things we wouldn't. ♪ when work is worth it. work is worth it. work can be closer to home... pay more... make us proud. careerbuilder. work can work. find your work at careerbuilder.com

final check on the markets, down 262 on the dow this morning. and nasdaq indicated down 90 now. s&p down 25. that would be two straight days of some pretty significant losses maybe totalling 2% at this point. see you again tomorrow hope to see all of you tomorrow. "squawk on the street" is next ♪ good tuesday morning welcome to "squawk on the street." i'm carl quintanilla with jim cramer, david faber at the new york stock exchange. coming off the worse day for the dow in a couple of months. the president at the nato summit says a china deal could be delayed until after the 2020 election europe's reacting to that and the possibility of some new u.s. tariffs on french goods. two-year yield, th