with us topght and good night from new york. lauren: here are your market movers at 5:00 a.m. the u.s.-china trade war escalating after president trump's latest threat to ramp up tariffs. with the chinese delegation on the way to washington this week, will the deal get done by the friday deadline? what did they know and when did they know it. a stunning new admission from boeing about the 737 max jet causing outrage this morning. 2020 democrats bickering over who could move the party further to the left. the latest debate between biden anand sanders. derby drama, how the horse that was disqualified is fighting for the trophy. it is monday, may 6th.

"fbn: a.m." starts right now. cheryl: here is how your money is moving at 5:00 a.m. futures are hitting overnight lows after two tweets from the president threat trade threatene negotiation coughs be derailed. the s&p is down 54 and three quarters, nasdaq is down 185, 2 andown 2 and a quarter percent. oil prices pulling back as well. worries that demand could he slow and the u.s. deployed to the middle east. the london stock exchange closed for a l holiday. we're seeing pressure on the china-u.s. trade negotiation. japan and south korea are closed. the shanghai comes pos i compos.

the hard line with china spooked investors. lauren: welcome to "fbn: a.m.." good morning. happy monday. i'm lauren simonetti. cheryl: good morning, everybody. i'm cheryl casone. of course, the big news, the markets this morning. lauren: the tweets that rocked global markets and a stern warning is coming for china from president trump. this is what he tweeted over the weekend. for 10 months china has been paying tariffs to the usa of 2 a 5% of $50 billion of high tech and 10% on other goods. these payments are partially responsible for our great economic results. the 10% will go up to 25% on friday. $325 billion of additional goods sent to the u.s. by china remain untaxed but will be shortly at a rate of 25%. the tariffs paid to the usa have had little impact on product costs, mostly borne by china.

the trade deal with china continues but too he slowly as they attempt to renegotiate. cheryl: larry kudlow clarified the be president's remarks. listen. >> the president is i think issuing a warning here. we've made great progress. we want to be optimistic. but if it doesn't work out, then i think what the president is saying in today's tweet is that we will continue the tariffs. we believe that's in the best interest of the united states. and china has got to end its unfair, nonreciprocal trading system, they're breaking the laws. we hope they'll come around with this deal. cheryl: china maintaining that a trade delegation is preparing to come to the u.s. to continue talks, but the chinese vice premier's trip is in question right now. let's bring in trade economist tori whiting. what do you make of the new threat from the president of

jumping the tariffs to 25% by i friday and additional tariffs on new goods? and we've never seen this tariffs before. this is the president of the united states' story. >> here's the thing, cheryl. i think the proposed tariffs or threatened tariffs are counter-productive to what the administration is trying to do vis-a-vis china. there have been gains it seems like in the negotiations and we need to focus on eliminating the tariffs that have been imposed thus far, not increasing the taxes on the american people. the things that could see taxes under this threat are apple products and clothing and regular consumer goods. this would have a direct impact on the american people. cheryl: i was looking at some companies that have maximum sales exposure to china. wynn resorts, 70% revenue exposure to china, qualcomm, apple, 20%. it's american companies. the heritage foundation has been clear on this, this is a tax on the american consumer. the president is taking a hard

line negotiationing tactic. can we see past that to the fact that a better deal could be on the horizon with china, based on the president's moves? >> you're absolutely correct, the heritage foundation has been saying for 45 years, since the institution was established, that tariffs are taxes on the american people. i think that what we've seen is that the president's negotiating tactics with china have not borne fruit whfruit-car -- not . we're looking at futures right now, down more than 500. cheryl: goldman sachs put out a note, before the news, had that the chinese delegation was still coming, again, the vice premier is the question mark. they said whether or not the delegation comes on may 8th, that's the biggest question. they said this lowers the idea that there's going to be a successful deal. they say that all of this back and forth and the global market

selloff this morning lowers the chances of a deal. do you agree? >> i'm optimistic an agreement will come to fruition. my fear is this additional pressure will result in a watered down agreement between the u.s. and china. we're talking about intense negotiation that's cover a wide swath of issues and that takes time. and the continued pressure by the administration to get something on the table rather than the right deal could be counter productive to the ultimate goal. cheryl: we're looking at qualcomm, that stock down more than 4.5%, intel stocks we have to watch, as we look at the trade policy that could be in jeopardy and the talks could be in jeopardy. tori whiting, thank you very much for being here. we appreciate it. thank you for your time. >> thank you. lauren: a major admission from boeing contributeing to the red we're seeing for the dow this morning. boeing says it knew about the problem with the 737 max safety alert system for about a year before it fold the faa and the

-- told the faa and the airlines. boeing said they discovered the problem shortly after the jet was put into flight in 2017 and didn't believe it would affect the aircraft's safety. they said it was after the second accident that boeing became more forth coming about the problem. boeing shares are set to chop some 70 points out of the dow jones industrial average. cheryl: dow futures off 522 right now. also breaking overnight, the u.s. is sending iran a clear and unmistakable message. an aircraft carrier and strike group have been deployed to the middle east after a report that iran may have been deploying military forces. >> reporter: a defense official told the associated press that

there were clear indications that iran forces were preparing to attack u.s. forces in the region, both on land and at sea. in response, the u.s. is sending a bomber task force to the middle east along with the strike group, including several destroyers. john bolton said the purpose is, quote, to send a clear and unmistakable message to the iranian regime that any attack on the united states' interests or those of our allies will be met with unrelenting force. on his way to europe a meeting, mike pompeo says the u.s. has been working on this move for a little while and told profiters that it's the case that we've seen actions from the iranians and we will hold the iranians accountable for attacks on american interests. this is just the latest move by the trump administration in its effort to exert maximum pressure on iran to change its aggressive

and destabilizing behavior in the region. however, last week on fox news sunday, iran's foreign minister was defiant, telling chris wallace president trump's strategy will not work. >> but i believe president trump's intention to put pressure, the policy of maximum pressure on iran, in order to bring iran to its knees so that we will succumb to pressure is doomed to failure. >> reporter: the trump administration is reportedly considering additional sanctions against iran. less than a month ago the white house took the step of designating iran's islamic revolutiorevolutionary guard a t institution. tensions are ongoing. lauren: thank you very much. cheryl: garrett, thank you. breaking overnight, israel and palestinian leaders appear to have reached a cease fire in gaza. palestinian officials say an agreement was reached this

morning. the israeli army announced that protective restrictions on residents in southern israel have been lifted. this comes after some of the bloodiest fighting since the 2014 war. ♪ sounds o[sounds of explosionsg hundreds of rockets towards israel. at least 23 palestinians and four israelis were killed. president trump tweeting once again, israel faces barrage of deadly rocket attacks by hamas and islamic jihad. he continues to the ghassan gasn people, end the violence and work towards peace. it can happen. cheryl: there are new photos emerging that show north korean leader kim jong un overseeing missile tests over the weekend.

despite showing little faith in kim's words, the trump administration still sees a path forward on denuclearization. >> we don't expect chairman kim to tell us the truth. that's why we're going to verify any denuclearization that takes place, that's why we will ensure we see on-the-ground outcomes. we still believe there's a path forward where chairman kim could denuclearize without resorting to anything beyond diplomacy. cheryl: north korea fired seven missiles on friday which pompeo said did not violate the nation's self-imposed ban on testing and the launches come amid the stalled talks between the u.s. and the rogue regime. secretary pompeo reiterating again, diplomacy the best option with north korea. lauren: let's get to otherred headlines this morning. a criminal investigation underway in russia after 41 people are killed in a plane accident. the aircraft bursting into flames moments after take- off. 78 people were on-board

passengers went down an emergency exit slide. president trump made his make for the next director of i.c.e. here he is, mark morgan. he is a strong support i of thee president's immigration policy. he will need to be confirmed by the senate. avengers end game keeps crushing the box office. >> whatever it takes. >> whatever it takes. >> whatever it takes. >> disney's superhero movie topping $2 billion in ticket sales in two weeks, faster than any other film in history. it is the second highest grossing film of all time unseating titanic. it's the fifth film to ever cross the $2 billion mark. that is a lot of money. cheryl: yeah. lauren: it's a long movie. cheryl: your money is not

moving this morning. well, it's moving in the wrong direction. futures are selling off. we're right now sitting at near session lows. we're barely off the session lows for the futures market for the dow. we're down 511 right now, a loss of almost 2% after the dow and the nasdaq so close to record territory last week. s&p is down 54 and-a-half, nasdaq down 184 and three quarters. of course, these fresh tariffs threats from the president and a series of tweets have spooked global markets. coming up, as the 2020 race heats up, democratic candidates trying to take a swipe at one of president trump's biggest successes. who they say is really responsible for the economic boom. plus the latest on the college admissions scandal, why the usc rowing team could be under hot water as a recruiting poster

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lauren: if you're just waking up this morning, the dow futures are now down over 500 points, just about 2%. s&p futures down 55 points, that is also just about 2%. and the nasdaq, folks, it is selling off by 2 and a third percent this morning, a 185

points to the downside. this is ugly. this is because of two tweet that's the president sent over the weekend threatening not only an escalation in tariffs but addition tariffs on china as the u.s.-china trade talks are set to resume this week. cheryl: we're following what's happening with the 2020 race. democrats now bickering over who could move the party further to the left. lauren: we have more ons this debate over which democratic candidate is the most liberal progressive. good morning. >> reporter: what a question, lauren and cheryl. let's a take a trip down memory lane, back to march. back before joe biden even entered this i race. remember this? >> i'm getting criticized by the new left. i have the most progressive record of anybody running -- anybody who would run. >> reporter: i have the most progressive record. not so fast.

according to perso bernie sandee takes the most progressive title and he's pushing back. >> if you look at joe's record and you look at my record, i don't think there's much yes about who is more progressive. >> reporter: sanders saying while biden was out there voting for the war in iraq, he was fighting against it, same thing with the deregulation of wall street. meantime, sanders and cory booker trying to get barack obama all of the credit for the current economic boom we're experiencing, but not without the national economic council director stepping in to say uh, uh, that's not true. >> i love that trump is taking credit for a recovery that started under obama. who is the economy going to work for? >> what mr. booker and some others are saying is not true factually. potus policies, to rebuild the economy, have entered us into a tremendous prosperity cycle.

>> reporter: so here's what we know for sure. the u.s. economy added 263,000 jobs in april, dropping the unemployment rate down to 3.6%. that's the lowest number since 1969, pretty good. lauren and cheryl. cheryl: markets rallied on that news on friday. that's another economic boom. great report. thank you very much. lauren: today is a different story. it's a he global selloff. the chinese market tumbling more than 5% and we're seeing follow-through in the u.s. with the dow down 516, nasdaq down 184. coming up, federal investigators now have the black box from the 737 jet that skid into a river in florida, forcing passengers to evacuate. details on the latest incident involving a boeing aircraft. and our very own liz klaman is in nebraska with warren buffet and they get a surprise visit from a tech titan. who it is coming up on "fbn: a.m." ♪ that's what i want.

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cheryl: we're looking at a he global market selloff after president trump tweeted yesterday about possibly putting more tariffs onto the chinese, that threatening trade negotiations. the dow is down 525, s&p down 55, nasdaq down 18 a 5. the nasdaq down more than 2 and a quarter percent in the premarket. the nasdaq, lauren, record close on friday. the jobs report, big market boost on friday. s&p and dow were close to records. lauren: the narrative has changed and investors are responding. we'll see come the end of the session if they're over-responding. nearly 50,000 people ascended on nebraska for berkshire

hathaway's shareholder meeting to get words of whic wisdom from warren buffet. we were close to the action. >> reporter: what a scene, all weekend long a in only yo home . these crowds, a record-breaking crowd. when all is said and done, it should be 42,000 plus people who descendnd on omaha, nebraska over the weekend to hear warren buffet dispense his words of which is come on investing, his view of the world and life. we were able to catch up with him and break all kinds of news. the uber ipo is coming up on friday. warren buffet said he looked at uber about 18 months ago involving a poe ten the shale pt before it went public and ultimately passed. i asked about interest rates and

how president trump expressed unhappiness with the federal reserve chief. warren buffet said there is nobody better out there to run the fed than jay powell. you have to ask him about bitcoin every year. in the past, he and his vice chair called it rat poison and rat poison squared. this year, he still told us he considered it a gambling device. he pulled off a button from his jacket and he said it's like this button, it doesn't do anything and its value does not change. while comments about bitcoin and the fed chief get real interest, it was the shareholders who were very concerned about warren buffet's investment in kraft heinz. in 2015, berkshire hathaway poured $10 billion into buying the maker of mac and cheese and veal seandveveeta.

last year, a huge wrow write-dod i asked him whether kraft was behind the 8 ball when it comes to the new way of eating. >> when you look at unit sales for the top 10 products of kraft heinz, they're quite steady. that's true throughout the food industry. now, with the population growing 1% a year, the american public will eat 1% more food. >> reporter: shareholders weren't exactly buying it. one questioner, one shareholder specifically asked why 3g had cut research and development at kraft and that that would have been an opportunity to develop healthier snacks at the food guy. cherylgiant. cheryl: the meeting also attracts celebrities, tim cook was one of them. the apple ceo made a surprise visit, not only attending the he meeting but he walked the floor,

talked to shareholders and took selfies and liz scored an interview with him on what he learned from buffet. >> reporter: are you enjoying your time in the meeting? >> i love it. >> reporter: what have you learned from warren buffet? >> warren to me -- other than the obvious wisdom, integrity, humility, straight language, plain language. i don't think there's a better teacher. >> reporter: and do you feel happy that he invested in apbe ? that's got to be great. >> i'm thrilled. lauren: thrilled indeed. we'll have more from the annual shareholder meeting all day. stay with fox business for the very latest. cheryl: let's take a look at u.s. futures right now. we have got a bit of a blood bath going on with global markets. dow is around session lows right now. we've got thre three hours befoe market's out. the s&p is down 55. nasdaq, after closing at the record high on friday, is down

more than 2 and a quarter percent. you want to watch the chip makers today as the china-u.s. trade deal may be in jeopardy. tensionses flairing as president trump confirmed a new set of tariffs set to hit china. china is preparing to return to the u.s. for further talks maybe without the vice premier. is there relief in sight? the internet banding together over wendy's spicey chicken nuggets. how the restaurant is giving you a chance to change the menu. you're watching "fbn: a.m.."

morning. what are you doing? isn't it obvious? nah. we're delivering live market coverage and offering expert analysis completely free. we're helping you make sense of the markets without cable or a subscription from anywhere you are. i get that. but what are you doing here? nice pajamas. really? i say pajamas. pajamas, pajamas, whichever. good. yahoo finance live. stream free anywhere. welcome to the show. let's make finance make sense.

cheryl: let's get you caught up on global market action. futures hitting overnight session lows. we're about sitting at the lows down right now, dow down 525. there were two tweets from the president, threatening trade negotiations. the nasdaq is down 186, more

than 2 and a quarter percent. you want to watch chip makers today in particular. oil prices pulling back on worries demand from china will slow. the u.s. deployed an aircraft strike group to the middle east, that's with regard to iran. that's down a buck there. we are seeing pressure in europe, red on the screen. asia, japan and south korea closed but the shanghai composite took a big hit, a 5 and-a-half percent, hong kong down almost 3%, as the u.s.'s hard line with china has spooked investors. over to you. lauren: president trump has put china on notice on twitter, he said trade negotiations with china are going too slowly and the planned tariff increases remain in place. the news taking a chunk out of the asian markets, hitting futures here. the tweets bringing volatility back. here with us is dominic devella. so many people came on the show

and said the trade deal is already priced in. are we starting to price out the trade deal? >> a positive resolution to the trade deal was priced in. we have a bump in the road here. i think negotiations hit a snag, trump would like these things to move forward more aggressively, maybe some issues that they thought were resolved are back on the table. and thus the tweeting started. lauren: do you think it's a delay or cancellation? >> both economies need each other. this is a must have. so will it get resolved? ababsolutely. will it get resolved by friday? i doubt. lauren: the president said the payments are partially responsible for our great economic results. did the tariffs give us a strong economy more or less? >> the tariff% tariffs are a th somebody has to play. what the president is alluding to is if somebody is going to buy something overseas and now they can buy it cheaper in the us, that creates a u.s. job,

maybe profits for a u.s. company. that's a real stretch. sorry. lauren: we have another big week for earnings, even though we're well through the earnings season. disney is a big name r reporting, about 55 other s&p companies report this week. all-in, what's your take on earnings so far? i mean, no earnings recession. >> look, we were pricing global recession in the fourth quarter. that's why the markets corrected. lauren: is that back on the table? >> not yet. if this thing were to get horrific, it would. that was one of the things that put the markets to go down. first quarter, the gdp over 3%, unemployment numbers have been fantastic, this economy is not sliding off the edge. earnings have been holding up, but remember, they were really reduced. the earnings numbers were really lowered. so we are starting to improve. we might get to high single digits by year-end but nothing spectacular, but no recession in earnings which is good news. lauren: what does the fed do with all this? >> they sit on the lines.

the sidelines. they have the best of both words. inflation relatively low, earnings, corporate growth positive, economic growth positive. why do you want to mess with it? lauren: do you think they cut by the end of the year? >> no. lauren: there's a 54% chance we see a cut by december. >> i understand that. negative stuff in the pipeline would have to happen, like these trade negotiations. right now the economy is humming along, there's no reason for the fed to cut. i know the white house would like them to, but they don't. that's ammunition the fed needs for our future. lauren: come back on. >> i would love to. lauren: thank you very much. cheryl: venezuelan opposition leader and u.s. recognized president of the country, juan guaido, is reportedly considering asking washington to launch a military intervention. in an interview, he said he is evidenceal waiting all options to oust nicolas maduro. mike pompeo was on fox news

sunday and he issued a strong warning to russia over venezuela. >> every country must get out, including the russians. that's what i'll tell them. we don't want anyone messing around with venezuela. we want them to be an independent, autonomous state. cheryl: secretary pompeo bomb o scheduled to meet with russia's foreign minister today. lauren: investigators want to know why the pilots of a bodge jet that p landed in a florida river made a last minute runway change. air traffic controllers received a request for a different runway before touching down friday night. the ntsb doesn't have the cockpit voice recorderring, recg fothat. occidental petroleum is revising the offer for anadarko, hoping

to outmaneuver chevron. they are increasing the cash portion of their offer. it was $76 a share. rather than 50/50 cash and stock, the cash portion is now 78%, it would remove any requirement for a shareholder vote. anadarko has an agreement to sell the business to chevron for $65 a share. those are two stocks to watch today. you may have trouble ordering a ride from uber and lyft wednesday morning. drivers are planning a two hour strike against the ride hailing companies over working conditions and pay. the stoppage will take place at 7:00 and 9:00 a.m. wednesday. the strike is planned a day before uber is set to raise $9 billion in its ipo. wendy's says its spicey chicken nuggets are coming back, thanks to chance the rapper. it started with a tweet from chance over the weekend, positive affirmations for today, i will have a good day, i will succeed today, wendy's will bring spicey nuggets at some

point. please, let it be today. wendy's said if the tweet received 2 million likes, chance would get his wish. just after midnight last night, wendy's announced the nuggets will make the return. cheryl: you said they're pretty darn good. lauren: i remember them, i remember liking them. cheryl: you're in good company. we're in bad company in the markets this morning. we have a big selloff to report this morning, after the president in tweets threatened new tariffs and jumping tariffs to 25% on chinese goods, this is threatening negotiations. dow down 509 in the premarket, s&p down a 53, nasdaq down more than 2 and a quarter percent. also, this. tension in washington amidst calls for robert mueller to testify before congress. the president is putting his foot down against the dems. could the fight head to the courts? andrea ma at the derby -- and drama at the derby, how the horse that was disqualified

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lauren: when was the last time we saw 500 plus decline for the markets? right now, dow futures are down by 54 and -- 504 and the nasdas selling off by 2 and a percent. this is all about trade. we'll see if trade talks

continue wean the u.s. and china this week. the china delegation is expected to come here. the president wants negotiations to move faster and so far that hasn't happened. cheryl: president trump changing his position on whether special counsel robert mueller should testify before congress. he tweeted yesterday there was no crime except on the other side, and no obstruction. bob mueller should not testify, no redos for the dems. democrats in the house judiciary committee are aiming to have a hearing on may 15th with robert mueller there. attorney misty mayer joins us now. misty, good morning. >> good morning. cheryl: whether it's the tax returns of the president, whether it's financial documents with his businesses, whether it's the mueller report unredacted, the congressional democrats, the house democrats are going full cars force many-. there's talk about trying to

impeach attorney general bill barr. is this a legal road that they want to go down? it's got be tough one. >> it absolutely is going to be a tough one. while the house is democratic majority, the senate is not. so it's almost a deadened. dead end. realistically, this is going to be a political balance test for the dems. are they going to go after bill barr who quite frankly be a pretty good job while democrats were essentially standing on a political soap box instead of asking questions to get more information about the mueller report. and he did a good job of giving these pointed answers. so is this something that the democrats are going to want to do, likely resulting in an unsuccessful impeachment attempt? it seems like that that could be a problem for them from a political point of view. cheryl: well, they're not stopping. in fact, i want you to listen to representative david sisiline on fox news sunday yesterday. >> the members of the committee need to see the full report and supporting documents so we can

continue to do our work, conduct oversight in a responsible and sober way. cheryl: it's the legal side of this, how much power do they have from a congressional standpoint. >> ab absolutely. with respect to seeing the full report, there was a lightly redacted report that was made available. there are certain portions that legally cannot be turned over. bill barr had done the right thing with respect to whats was released and what has not been released. so, look, only time will tell. i do think we may see mueller actually testify and a lot of that is going to depend on bill barr's decision. he said i'm not going to stop mueller from testifying. whether or not the president's tweet this week changes the game, only time will tell. cheryl: i want to show you, because chuck schumer tweeted about this, he said first donald trump tried to fire mueller,

refused to be interviewed by mueller, now he's trying to silence mueller. chuck schumer is pointing the finger at the president. criminal contempt, that's something congress has used in the past. they could use it against bill barr and robert mueller. criminal contempt is something that would have to go to the courts if they take this road. how possible is that. >> >> criminal and civil contempt would have to go to the courts. i don't think you would see criminal contempt. if you see civil contempt it's something that's not going to come to any fruition because its takes such a long time to work its way through the courts. it's a lot of running around without getting to an actual result. so more time-consuming investigations and, look, we spent astronomical resources and time for a 400 page report. maybe it's time to move on. cheryl: maybe they need to move on instead of dragging this out into the 2020 election. that's another side of the store rim misty, thank you. lauren: let's take a look at

the damage on wall street this morning, all spurring from president's tweets about trade negotiations with china over the weekend. the dow is down 2%, 516 points in the red, nasdaq down 182 this morning. up next, in just a few hours president trump's former lawyer, michael cohen, will begin his three-year prison sentence. we're going live to the prison as we learn that prosecutors refused a final meeting with cohen. tiger woods is heading to the white house, celebrating the masters victory. not everyone is as excited. why one sports hero says he's staying away from the capitol. keep it here on "fbn: a.m.." heading into retirement you want to follow your passions rather than worry about how to pay for long-term care. brighthouse smartcare℠ is a hybrid life insurance and long-term care product. it protects your family while providing long-term care coverage,

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cheryl: watching a global market selloff, trade negotiation was the u.s. and china hitting a sticking point as goldman sachs called it. s&p is down a 52 and a quarter, nasdaq down 2 and a quarter percent. lauren: in a few hours, president trump's former lawyer, michael cohen, will begin his three-year prison sentence. he is expected to speak before heading inside. cheryl: todd piro joins us from outside the prison in of otisville, new york as we learned prosecutors refused a final meeting with cohen. >> reporter: that's right. good morning to both of you. michael cohen will hold a press conference this morning and then travel 70 miles north to otisville at a prison that manyy people call one of the cushist in america. on april 9th of last year, the fbi raided cohen's apartment, hotel room, office and safe deposit box. on august 21st he pleaded

guilty to eight felonies including fraud, tax evasion and illegal campaign contribution. then on november 29th cohen pleaded guilty again, this time to making false statements to congress in connection to the special counsel investigation. and on december 12th, cohen was sentenced to three years in prison. as for this prison, the federal correctional institution here in owe the i isotisville, he will n a minimum security camp where he will have access to a full-time rabbi as well as the cafeteria serving motzo ball soup and snacks like doorly toes and diet -- doritos and diet spite. he offer.his offers to be a whie blower was not accepted by the feds. we asked his attorney for a comment. he said why don't you ask

president trump if it's okay to communicate with me, wouldn't want to get an old friend in trouble. cheryl and lauren, back to you. cheryl: todd piro, live for us in otisville, todd, thank you. lauren: another big story is your money this morning, because it is a global selloff that we're watching. the president wants the trade negotiations to move faster. the delegation from china is coming to the u.s. this week. we'll see if the vice premier actually comes. the dow is down 491 points, better than the five and change we were down moments ago. millions of dollars hanging in the balance after the stunning disqualification at the kentucky derby. i know. and the latest on the college admission scandal, why some are taking another shot at the usc rowing team after this old recruitment ad resurfaces. keep it here. this is the couple who wanted to get away who used expedia to book the vacation rental which led to the discovery

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cheryl: we have a global market selloff to tell you about this morning on tensions between the u.s. and china and possibly the trade deal hitting a sticking point as goldman sachs called it dow down 497, nasdaq is down 2 and a quarter. lauren: let's talk sports. everybody is talking about saturday's historic, controversial kentucky derby. cheryl: it may not be over yet. jared max is here with that story. jared: what an interesting story. the first horse to cross the finish line on saturday was maximum security. he was disqualified after it was

determined that maximum security had impeded three other horses by going out of lane. contact was made between maximum security and country house, the jockeys avoided a disaster, jock see in the yellow silks is the one who won it, the 65 to one long shot. afte the ruling is set to have t betters $9 million. president trump tweeted the kentucky derby was not a good one. it waonly in these days of pligl calpoliticalcorrectness could sn overturn occur. while the owner of maximum security is considering fighting the ruling, kentucky racing law states all decisions shall be final and not subject to appeal. neither horse has committed to

running the preaknes peek preak. tiger woods will be in washington, d.c. today, he will receive the presidential medal of freedom from president trump in a white house ceremony. it's a big sports week at 1600 penpennsylvania avenue. thursday, the red sox will be honored. missing some of the bigger names like the manager who announced he will boycott the trip. the short stop is the same. some cite lack of progress since hurricane maria. somebody found this on twitter. this was posted last august by the university of southern california rowing team, maybe foreshadowing trying to attract rorowers. it even says no previous rowing experience. there's a lot of mockery going on against lori loughlin and

olivia jade. no experience? what college sport can you do that for? cheryl: probably none of them. ping pong? keep us updated on the derby story. catch jared's sports reports on fox news headlines 24/7, sirius xm channel 115. lauren: let's show you the damage on wall street this morning. the dow is down 494 points, and the nasdaq which did close as a record high on friday, it is down 2.2%, 175 points in the red. cheryl: that is it for "fbn: a.m.." "mornings with maria" starts right now. maria: thank you so much. good morning everyone. we have breaking news this morning and developing. i'm maria bartiromo. thanks for being here. it's monday, may 6th. breaking news, the u.s.-china trade deal in turmoil. president trump issuing a massive tariff threat late yesterday. china threatens to skip talks in the united states this week. the news triggering a global selloff in stocks.

take a look at futures, we're just about near the lows of the morning, down better than 500 a minute ago, down 492 points on the dow, down almost 2%. s&p down 51 points, 1 and three quarters percent, the nasdaq futures down 172 points, that's a 2 and a quarter percent decline there ons nasdaq futures. in europe this morning, similar story, take a look at the european indices. we see most of the majors down, although the fq100 is actually up 29 points, almost half a percent. the cac in paris is down 115 points, better than 2%. dax index in germany down 255 points, better than 2%. london stock exchange closed for early may bank holiday and that's why you did see that move in the fq was from yesterday, friday. nikkei average closed as well, holiday in japan, take a look at indices in asia, shanghai composite in china 5 and two-thirds percent. hit hard on this perhaps

collapse that we are talking about in the china trade talks. nikkei closed for holiday. hang seng index hong kong down almost 3%. there's more trouble for bowing this morning. aircraft maker knew about the safety alert problem for a year before telling the faa as well e airline. better than 3%, that will add to really trouble situation. iphone battery life, exaggerating how long phones operate between charges, the stock down 3% in premarket, all the stories coming up. focused on markets and how to invest on potential breakdown in talks, fox business dagen mcdowell, pwc mitch roschelle and lindsey bell. >> good to be here. maria: deal price intoed the market, a lot of people thought, well, this is probably moving towards completion and then we get the tweet from the president yesterday.