price, panic point, and pivot point. liz: two of us are old school. you got that? great to see you, stephen guilfoyle. thank you for your picks. [closing bell rings] the dow still down but moving. we'll see you tomorrow. connell: trade tensions weighing on wall street again and also on the 2020 race for president which we'll talk about. all three major averages in the red. we'll see that second day in a row. lower by 87 point, off the session lows as the chart will show you. good to be with you on a monday. i'll connell mcshane. melissa: i'm melissa francis. this is "after the bell." the s&p 500 and the tech-heavy nasdaq ending in negative territory after two work of losses. the nasdaq closing down more than 1%. more on the big market movers, but first here is what is knew at this hour. ♪ focusing on one of the states at the center of his re-election

strategy, president trump is preparing to leave the white house to hit the campaign trail and for a rally in pennsylvania where polling suggestion he might be in trouble against some of his democratic rivals. i will speak with the chair of the state's republican party on what issues matter the most to voters there. plus sending a strong warning in iran. president trump threatening that the u.s. could bring the country, quote, to an end. now tehran is fighting back. a graduation exist that will be very hard to top. how one billionaire is giving graduates the chance to focus on their dreams instead of their debt. connell: that is some story. back to the markets. the dow is down 83 points as it settles to the close. china trade making its way to the 2020 stage. for the market conversation, president trump on twitter, like bernie sanders is history. "sleepy" joe biden is pulling ahead. think about it i'm only here

because of sleepy joe and the man who took him off the 1% trash heap, president o. referring to president obama. here it is about the trade war. china wants sleepy joe badly. is he right? adam lashinsky, and dan henninger. both fox news contributors. dan you think china is hoping for joe biden? >> i think they would probably refer that. joe biden said earlier in iowa campaigning earlier this month, that china is quote, not competition for us. that remark is disconnected from reality. because the president's trade deal with china has gone kind of dormant at the moment, something he really needs, that joe biden is just waiting there and trump is acutely aware of the fact that that trade deal has gone quiet. now he is trying to compensate that putting joe biden on the spot. connell: china wants him badly,

adam, what do you say? >> there is this theory chinese want to wait out president trump because they want a democrat in the white house because they believe or this theory they believe it may be better for them. they may well be right. by the way i think market wants too. that is the action we've been seeing. most people believe the president is doing the right thing by confronting the chinese but the market want this resolved period and is upset it isn't. melissa: sending a message aft u.s. warship has been sailing in disputed waters off the south china sea neither washington nor beijing is showing any sign of backing down on the ongoing trade war we were talking about. fox's hillary vaughn is live at white house. hellory? reporter: the u.s. navy is confirming they took a warship through the waters of the south china sea. china said these warships violated china's claim to sovereignty. the navy saying it was a direct

challenge to china's excessive maritime claims and part of their routine freedom of navigation exercise but china is saying the u.s. is provoking them by doing this, all indthe guise, all under the guise of this free navigation exercise. this is the u.s. ramps up their crackdown on chinese technology, the latest target, drones made in china but used here in the u.s. we obtained an alert from the dhs's cybersecurity arm that warns this, quote, the united states government has strong concerns about any technology product that takes american data into the territory of an authoritarian state that permits its intelligence services to have unfettered access to that data or otherwise abuses that access. the dhs says these drones can stash or transfer data to chinese authorities including a drone's flight path, surveillance data, even information on the pilots that are manning the drone. 80% of all drones that are flown

in the u.s. come from china and a massive chunk of that come from one drone-maker headquartered in china, dji. they released a statement reacting to the dhs's warnings essentially saying they're already in compliance writing quote, we give customers full an complete control over how their data is collected, stored and transmitted. for government and critical infrastructure customers that require additional assurances we provide drones that do not transfer data to dji or via the internet and our customers can enable all the precautions dhs recommends. the dhs did not call out a specific drone company but one drone maker based in china i talked to today, they said they don't think it has anything to do with national security, they think it is all political because of the back and forth between china and the u.s. melissa: hillary, thank you for that. connell: staying with this theme, cracking down on chinese tech companies, this time around google, joining the effort by cutting off huawei's smartphones

from some of its android services. let's go to susan li from the floor of new york stock exchange with more on that. susan: this is huawei fall out today on wall street exchanges. google with chipmaker qualcomm, broadcom, falling with reaction with huawei put on the blacklist. u.s. suspended all business activities transfer of hardware, software and key technical services when it comes to the android operating system. don't forget huawei is the world's second largest smartphone shipper that runs on android. in future when they sell the smartphones it will have android on it but not google services. it will be more of an open source entity. saying basically that huawei itself is building a safe and stable software ecosystem still. there you go. that is the piece i wanted to

show you. as for the chip-makers, don't forget huawei buys $10 billion of intel, qualcomm, broad come chips. zte last year was a rival to huawei's was put on similar blacklist. president trump stepped in but some say this may not be the kill swim for huawei but will be crippling. connell: thank you, susan. melissa. melissa: a very tight labor market, multiple fast-food are experiencing expedited pay. church's offering half of their pay one day after their shift this is so creative. they're having hard time finding enough workers that will fill these jobs. so what do they do? they offer them, if you show up for the shift today, you get half of that pay tomorrow. because people are not showing up for the shift. you can't really fire them because you don't have anyone to

replace them. what do you think of this creative solution? >> i kind of like it a lot. shows effects of a very strong labor market. melissa, i hope stories like this "wall street journal" had one that incredible pressure small businesses are under to hire people, i hope it puts an end to argument whether we want really strong economy like we've had now or relatively tepid economy like we had before. that strong economies produce this kind of benefit for people at the lower end of the pay and work scale. melissa: adam what do you think about that? pizza hut and checkers are also doing the same thing, incenting you to just show up for the shift. you get half of that money for the shift, very next day. hmmm, pizza. looking at pizza now. say anything you want i won't hear it. because i'm looking at pizza, go ahead. >> i also think it is smart. if you think about the way we pay people is quite antiquated. you work, wait a couple weeks. this is the way money cleared

100 years ago. churches, pizza, they get money from their consumers immediately. they can pretty much afford to pay their workers immediately. dan, i hope this conversation brings us more quickly to a bipartisan agreement that we shouldn't restrict legal immigration in this country. melissa: i thought that is where he was going for that one. >> we need workers. >> i agree. melissa: that is absolutely true. you guys are wrong on all points. i like that point about the antiquated pay system. no reason for it to be like that anymore. connell: love it when you all agree. melissa: yeah. solving problems. connell: the gender pay gap or trying to. this idea of addressing the pay gap genderwise, democratic candidate for president kamala harris, pushing a new plan that would fine larger employers for failure to pay women on equal basis. the company would be fined 1% of profits everyone% of wage gap they allow to continue with workers of equal value. do we still agree? melissa: that is the opposite

what we went through, that is government telling you what you have to do. in a strong labor market feel who don't feel like they are getting what they deserve, say, hey, go take a hike. connell: tough to measure. melissa: who feels what jobs are equal? how are two jobs equal. connell: seems somewhat subjective. never mind. >> i was letting you to hang out there until you think -- speaking directly to voters in pennsylvania. president trump making his way to the battle ground state with a campaign rally. we're speaking with the pennsylvania gop chair with what we can expect. connell: sending a major warning to iran. why he is telling the nation to never threaten the united states again. we'll give you latest headlines on the pentagon. >> did an equal job on the tease. connell: awe. melissa: tornadoes and flash foods are expected. they could cause major damage. this is serious.

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connell: breaking news. the trump administration is telling former white house counsel don mcgain to defy a house subpoena, not testify before a congressional panel. blake burman live at the white house with more on all that. reporter: connell, democrats

want former white house counsel don mcgahn to testify before the house judiciary committee. however the department of justice and the white house said that would amount to something that would be unconstitutional. the department of justice has written a letter, written its opinion to the white house in which it says the following. quote, congress may not constitutionally compel the president's senior advisors to testify about their official duties. the white house counsel then turned aarp and wrote to the top democrat on committee, congressman jerry nadler, the following quote, constitutional immunity of current and former senior advisors to the president exists to protect the institution of the presidency and stated by attorney general reno may not be overborn by competing congressional interests. among topics of interest for democrats, page 85, volume two, in the mueller report. mcgahn, the former top attorney over here at the white house told robert mueller at points

during 30 hours worth of testimony that the president instructed him to fire the special counsel. according to the mueller report the president told mcgahn, quote, mueller has to go. now president trump has disputed that section of the mueller report. for example, last month he took to twitter, wrote the following. as has been incorrectly reported by the fake news media i never told then white house coins r counsel don mcgahn to fire robert mueller even though i had the legal right to do so. if i wanted to fire mueller, i didn't need mcgahn to do it. i could have done it myself. doj is laying out the case why don mcgahn shouldn't go before the house judiciary committee to talk about some of his experiences inside the white house. speaking of the president. he is set to leave the building. he will be headed to pennsylvania tonight for a campaign rally. his trip to pennsylvania comes two days after joe biden went to the state for a campaign

pickoff. when you look at the most recent polling there the president trails biden and bernie sanders in hypothetical matchups by a pretty sizable amount, 11 and seven points according to a most "qunnipiac poll." the president flipped pennsylvania last go around in 2016. trying to hold on to 2020. connell? connell: they tell me that might be a important state. melissa. melissa: reacting is val degiorgio, pennsylvania republican chair. on the scene of the president's rally tonight. i understand it is pretty loud there. i'm not surprised at all. i hope you can hear us. >> yeah i can hear you. melissa: talk about the poll out of the gate. a lot of people are talking about that today, in a head-to-head according to quinnipiac biden is up by 11 points against the president. how do you battle back against that? >> there is no way biden is beating president at by 11 points. the fifth we've had since i've

been at chairman. overflow crowd outside. every poll had donald trump down in pennsylvania before election day in 2016. the same old story. president gets beat up by the media every day. joe biden gets lavish treatment by the media. so, you know, we'll see what happens on election day. pennsylvania has the greatest economy ever. unemployment is lower than it has ever been in pennsylvania. state revenues -- melissa: let me stop you right there, for that reason alone you would think anyone who answered the phone or answered one of the polls would want to stick with the horse they got right now because the economy is so much better. why are they not saying that? >> i don't know who they polled but the same thing we saw in 2016. you couldn't find a poll in pennsylvania with donald trump winning. he was down by seven, 11, 12 points. one poll had him down 16 points two weeks out. i don't know what it is with polling and pollsters. i know what i feel when i drive around pennsylvania. melissa: also, it didn't transfer to those other candidates that are republicans that were in the state in pennsylvania since 2016. i'm looking at a list.

lou barletta lost a senate candidate. scott wagner lost the governorship by 17%. jeff bardos lost lieutenant governor by 17%. why do you think these guys were not able to win on the republican side with the economy how it is and the president in office? >> what we've seen historically in midterm elections. you know intensity tends to be on the other side. that was the case last year in 2018. so, trump, not all the trump voters were coming out we were seeing in our polling, our data. they're going to be out in 2020. there is no doubt about that. melissa: what do you think is the number one issue on the minds of voters in your state? if he had to come with a single message, would you tell him to hit the economy? health care? what is the number one issue? >> immigration is a big, big issue here. when i talk to folks, it shows up, immigration and economy shows high in every poll.

and people need to know that their president is keeping them safe. they want to see the democrats and republicans work together on this the president put out a couple proposals now on immigration reform. democrats need to come together instead of obstructing, obstructing and compromise. melissa: i don't want to run out of time. i know you're so busy. what do they say to you specifically about immigration? that might be a surprise to some of our viewers because you are not in a border state? what type of things are they saying? >> look what is happening in philadelphia, sanctuary city policy illegal aliens have more rights than citizens do in our courts. they're, where they're actually plea bargaining down felonies to misdemeanors because, the courts, they want to let them out, don't want to turn them overto i.c.e. things like that concern pennsylvanians. we're not against immigration. we're pro-immigration. president said illegal immigration is making country more dangerous than policies put

in place by liberal democrats like philadelphia. melissa: thank you for your time today. >> thank you. connell: interesting ahead of a big rally tonight. on other side democratic candidate pete buttigieg is pitching not one, not two, not three, but four new tax hikes. melissa: what? he made that pitch during a fox news town hall last night. how the plans may impact you. in the wake of the on going tariff battle with jeff flock, takes us to a lake michigan where a boating company is feeling the heat. that's next. ♪ there's brushing...and there's oral-b power brushing. oral-b just cleans better. even my hygienist said going electric could lead to way cleaner teeth. and unlike sonicare, oral-b is the first electric toothbrush brand accepted by the ada.

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it protects your family while providing long-term care coverage, should you need it. so you can explore all the amazing things ahead. talk to your advisor about brighthouse smartcare. brighthouse financial. build for what's ahead℠ connell: making the 2020 pitch to american voters at a fox news town hall democratic candidate for president pete buttigieg wants to impose four different types of tax hikes. >> a reasonable wealth tax or something like that to make sure that people are giving back when they become enormously wealthy. perhaps a financial transactions tax that taxes these millisecond

differences in computer trades that people become enormously wealthy off of. connell: mayor pete proposing a higher marginal income tax rate and closing corporate tax loopholes. dan henninger from the journal. it is interesting to watch that, before we talk about how it fits into the quote-unquote horse race, where do you think mayor pete is in terms of other democrat candidates, from the sound of that he would be pretty far to the left? >> he would be. the thing i was struck by connell, he is the candidate of the future. he is a millenial. baby boomers come in for a lot of criticism. i was struck by how conventional his policy proposals are, especially tax proposal, raising corporate tax, wealth tax. nothing unusual there. connell: we heard it all before. >> we heard it all before. i think that probably if implemented would suppress the economy. i don't understand why someone like mayor pete buttigieg pocket the strong economy, move on to more interesting innovative

ideas surrounding health care or labor mobility. the fact millenials have a hard time moving from one place to the other. instead of raising the corporate tax rate. connell: it was interesting. he was asked about it in that case somebody in the audience, may be compelled to answer it in that way but he has a, obviously an interesting biography which he can sell. he is different than the other candidates in that way. he was all the rage a few weeks ago. you wonder whether he had his moment in the sun and he starts to fade or another leg up where he can challenge the bidens and bernies of the world? >> he has a long way to go. but you know, very interesting, very articulate, very smart, may be reminds people of barack obama, young, energetic democratic candidate. you're coming a long way from mayor of south bend, indiana to the major leagues of presidential politics. connell: a long way. >> it is early, there is no question about it. i think people are giving him a second look. i was struck myself, i watched

the town hall last night with chris wallace i thought he was a little bit too platitudeness for my taste. i thought he might have gotten deeper into substance. it is early. when he gets into debates, gets on the campaign trail, the press, whether something more than simply a guy can be articulate and quick answering questions. connell: in a democratic primary, chris wallace pointed out, what is his biggest challenge, the most striking difference between he and president obama is able to appeal to african-american voters which chris pointed out he hasn't done in the polls. not sure how that would change, with the way the makeup of the primary field is right now? >> i think he would have to appeal in them in distinctive and different way. joe biden has appeal with black voters. they like him. kamala harris, cory booker. how does he break through with a group like that to say, give me a second look? that is what he said.

they will get to know me over time. i think he has to take some risks, go a little deeper on substance. try to stand out in a way that makes sense to minority voters. connell: as final point, acknowledging it is way too early to make any kind of judgment on all of this, the popular story coming into the democratic race this was going to drag on forever. you will have 20 people on the stage we'll not no know who the nominee is. the last few weeks we've seen a very, very strong candidate in joe biden since he officially got into the race. is there a chance this might be over earlier than some anticipated? >> i don't think it could be over earlier. i think the field could shrink earlier than we think. democrats are talking about how have the 23 candidates in the race is damaging them. it is too much choice for people to process. connell: yeah. >> perhaps once they get past the debate, if some of these candidates are not rising they will have to push them aside, let the top seven, eight or nine candidates fight it out. even that is a lot.

connell: that is a pretty big field. >> republicans were up 10 the last time. people thought that was overwhelming. connell: this is 23. dan henninger always good. melissa. melissa: escalating tensions. president trump's stern warning to iran if the country engages in a war with the u.s. how iran's foreign minister is responding now. connell: plus good-bye student debt. one commencement speaker's 40 million-dollar gift to one very lucky graduating class. melissa: in the midwest where storms are heading. that is coming up. i don't want any trade minimums. yeah, i totally agree, they don't have any of those. i want to know what i'm paying upfront. yes, absolutely. do you just say yes to everything? hm. well i say no to kale. mm. yeah, they say if you blanch it it's better, but that seems like a lot of work. no hidden fees. no platform fees. no trade minimums. and yes, it's all at one low price.

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connell: breaking news. update on chinese firm huawei. the u.s. commerce department has list ad revision to the entity list, the banned list huawei was put on so existing customers can maintain their networks. this is interesting. the government is now allowing huawei to provide service and support including software update or patches to existing huawei handsets. the commerce department has created a temporary license, this will last 90 days, 90 day temporary license for huawei and 68 entities through the 19th of august. that is the update just issued. melissa. melissa: tensions escalating between washington and tehran. president trump telling iran that the u.s. is an enemy it doesn't want to make, tweeting quote, if iran wants to fight, that will be the official end of iran. never threaten the united states

again. fox news's. griff: is at the pentagon with the latest -- jennifer griffin. jennifer? reporter: melissa say the unguided rocket fired towards the u.s. embassy in iraq in the green sown landed harmlessly besides the embassy, which is largest embassy in the world. they are leaving the investigation to the iraqis. we're quote, a aware of the explosion outside the green sown outside the u.s. embassy compound on may 19th. there were no casualties. the rocket was fired a day after the state department ordered the evacuation of nonessential staff from the consulate in northern erbil in iraq. the gave what iran wanted, announcing a withdraw of some americans in the iraq.

iranians negotiated the nuclear deal, meantime trolling president trump on twitter. goaded by hashtag b-team on real donald trump hopes to achieve what alexander, genghis khan and other aggressors waited to do. iranians stood tall for millenia while aggressors all gone. economic terrorism or genocidal taunts won't end iran. never threaten an iranian, try respect. it works. uss abraham lincoln trained along the amphibious assault ship kearsage. patrick shanihan who has not been officially nominated and briefed lawmakers on the latest intelligence that led to the pentagon new warning about iran. melissa. melissa: great reporting, jennifer, we appreciate that. connell: we're joined by retired

lieutenant colonel dakota wood at the heritage foundation. listening to jennifer's reporting there, how close are we and how tense is the situation and how close are we with potential conflict with iran? >> it is similar to any other policy or announcement coming out of the white house or d.c. you want to look at what the actual policy being implemented is and ignore all the hand waving and heated rhetoric. what are the forces? what are their posture? are troops moving to the region. none of that is really happening. we had shows of force but nothing postured for some kind of a massive strike. let's look at the actions, and not pay attention so much to the words. connell: okay, as you look at what president trump has said, you say what he has done has been different, maybe what some administration officials have said, there is something written that the president is being purposefully confusing to the iranians in terms of tweets that are sent out and the like? on one hand saying hey, we're ready to go after them, on the

other hand, no i don't want to fight. is that part of what is happening here? is that what you're saying? >> intentional ambiguity. once you solidify your position your opponent knows where the manuever room is right? keep them off balance. are we aggressive, holding back, keeps the iranians guessing and other actors. that provides you manuever place. the president is playing a smart game. connell: what is the goal short term? >> the goal short term, one we're seeing the impact of a full-court press, maximum pressure sanctions. otherwise the iranians would not react like this. getting other actors in the region to get involved. nobody wants war. what are people willing to do to prevent that? iranian problem with nuclear capabilities and support for terrorist organizations and what they're foe meanting in region. have them discuss things instead

of acting militarily, potential sabotage of tankers, rocket attacks against the embassy, et cetera. connell: when the president talks about or threatens the official end of iran, basically saying what war would mean, is that something he is serious about and would he follow through on if it got to that point? would he will be to back up what he is saying? >> problem is with the government from iran, not with the iranian people, persian culture or other things that manifest. a wonderful country, rich in history and culture but these mullahs that exercised power since '79, that is where the real problem is. so i think we need to keep focus on that. connell: do you get regime change without military conflict? can you get regime change in iran without actually going to war? >> i think so. we saw the uprising, popular uprising, color revolutions, arab revolutions occurred during the arab up pricing during the obama administration.

that fizzled out because there was not any support to it. clearly people who travel abod, who study, conduct business, see what life can be like outside of iran. they want more personal freedoms. they want less restrictive imposition of these very intolerant practices by the government in tehran. so there is the potential, certainly for a peaceful upheaval or overturn of the current hierarchy there in the government. it doesn't need military power but we're not going to allow our people to get attacked in iraq. we'll not allow nuclear programs to go unchecked. we're not going to allow or tolerate iran using the $100 billion that it was given under the previous administration to foment terrorist attacks across that region. connell: fair enough. we'll continue to watch it. terrific analysis. colonel dakota wood. we appreciate it. >> thank you. appreciate it. melissa: gives with value of approximately $40 million, billionaire robert f. smith

stunning morehouse college graduates on sunday. fox news's jonathan serrie has the details. reporter: robert smith was well-known among the business majors in attendance. less known for those studying humanities. by the end of his speech he was the most popular man on campus. listen. >> i've pot the alumni over there. this is the challenges to you, alumni. this is my class, 2019. my family is making a grand to eliminate their student loans. [cheers and applause] reporter: smith delivered his gift with a challenge to pay it forward. many of us have given to our alma matters to help scholarships to help students enter college. what smith is calling for is a little different. by paying off student loans he is helping students as they transition from college to careers now debt-free. >> what is, we're able to raise enough money every year to give on the back end as well on the frond end, so we make it to

where seniors are trying to graduate to move to new york or l.a. they don't have to worry about that burden of those loans. reporter: aaron who you mentioned, had student loans totaling $200,000. now that is being paid off, he plans to invest the savings in real estate and then from the money he earns, he plans to give back to the college. melissa? melissa: jonathan serrie, that is a fantastic story. thank you so much, it is a great story in fact. my thinking at some point you will see it, every single college will want a billionaire to speak. melissa: hoping for the best. i don't know we could call bloomberg. this guy will be in huge demand. connell: he is not a great speaker but he has a huge bank. it's a great story. if you're upset about the finale of "game of thrones," listen you got to see it. wait until you hear about this, we have a story about how the trade war is hitting game

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melissa: game ever thrones coming to an end but fans in china were not able to tune in. can you imagine? an hbo spokesperson saying china restricted tencent video from airing the episode due to the trade dispute with the u.s. according to "the wall street journal." many angry fans are now demanding their subscription fees be returned. connell: good luck with that. melissa: oh, boy. connell: we have this speaking of a trade war, unexpected victim of the trade war with china. the boating industry is vital to the american economy. contributing $170 billion. if you look at it, even some as you would think american-made boating products are feeling an impact of the choppy waters due to the negotiations with beijing. we're joined by jeff flock, who joins us out in lake michigan with the story. jeff? reporter: tell you, connell, we've been trying to document the various and sundry folks affected by this i have good news and bad news for you. i'm on a, this is boston whaler

350 realm. it is made by the brunswick corporation and they are heavily involved in both boating, making of the boats as well as the engines. and you know this one, let's go ahead, crank it up and give melissa and connell a sense what it is like when you're cranking it up good. go ahead and punch that thing. there you go. because the boating industry is going strong. both good news and bad news. here is the bad news, yes the tariffs have an impact. we spent the day out along chicago's beautiful harbors. there are harbors all along the lakefront. we spent the day with the ceo of brunswick corporation exclusively on fbn, give u.s. the latest hit from 10 to 25% in terms of the china tariffs has done to his business. take a listen. >> this is about a 7 million-dollar hit to earnings this year but we did include that in our forecast the beginning of the year.

reporter: you were thinking ahead? >> we were thinking ahead. the canadian tariffs were lifted. we were thinking our way through it but it's a headwind though. reporter: here is the good piece of news from this, connell and melissa, when the folks from brunswick went to the commerce department, said, hey listen, we're competing with the japanese in terms of engines made in china and you don't have any tariff on japanese engines coming into the marketplace but you're putting a tariff on us, we don't deserve some sort of exemption. commerce department came back, says, yes, we'll give you an exemption. the tariff thing can cut a couple different ways and, okay, give us a wide open, just so we can abye-bye on wide open -- tell you, the sun is out. isn't it beautiful? connell, melissa, wish you were here. connell: out in the middle of lake michigan. that is a good story. melissa: do not fall in, do not

fall in there, jeff. connell: oh. i think let's take it full. go ahead. melissa: all right. american manufacturers are dealing with the impact of the trade wars with china, one major trade association saying though, luckily there are a lot of other factors going their way. for example, consumers are still willing to spend. joining us bill darcy, the national kitchen and bath association ceo. you are here with your survey and you found some things i was surprised about. they're expecting future conditions to get even better. they're finding people willing to spend, that right? >> that's correct. right now, it is strong growth in the first quarter. we're expecting the second quarter to be even better. right now our members are saying it is very positive, melissa. melissa: there are a lot of head winds for your industry. new home sales. housing market in a lot of places has gotten soft. with respect to the chinese tariffs, all the trade wars, the price of supplies and your raw

materials has gone up. how are your members dealing with that? >> the members are resilient. they're working through the tariffs and trade. it is a headwind as your prior discussion was on that topic. labor is looking to be number one challenge. labor and tariffs, members have to be resilient to work through it. time will tell how that impacts. that is very positive in the market. melissa: yeah. you talked about the labor market. that is always a huge thing with your industry, there are jobs available whether you're an artist, you know, whether you're a designer or whether you labor with your hands. there is a very profitable job in your industry but your folks are having a hard time finding people that are trained in the right area. how do they deal with that? what kind of solutions are they looking for? >> every five people that leave the industry only one enters. melissa: wow. >> we're trying to educate young people and encourting people out of work and so many opportunities in the

construction industry. it is challenging. it is putting pressure on, jobs are taking longer. members are saying approximately 30% longer right now. >> yeah. we did a story about fast-food companies paying people the next day in order to incent them to work in the industry. your problems are a lot tougher because you have to find people like we said with the training. i always say when i talk to folks in your industry they're willing to take part in the training, willing to partner with local communities to do that. are they having any success? what is the big barrier? we'll having success. 70 chapters across north america are working in local markets educating wrung -- young people. the pressures and demand are high. it's a challenge. we're working through it. educating young people on lucrative careers and potential entrepreneurship of business ownership in our industry. melissa: before we run out of time. i notice people, remodel something a little bit down.

we talked about home prices are getting a little bit soft. that benefits a lot of people in your industry though, if you have the money to do it, the thing you want to do is remodel the kitchen and bath? >> exactly where you get focus and return, spend the most time. our members are doing projects in the most popular rooms in the home. if consumers are smart they spend money in the kitchen and bath. melissa: are they stepping up spending on technology is that a big driver or about the feel and materials? >> it is about technology. young people leave the home, go to school. second generation is coming back, the parents coming in the house. kids come back. you have to plan for multigenerational needs in the home so that is driving a lot of it as well. melissa: very cool. bill, thank you very much for being with us. >> thank you, melissa. connell: we have weather coming up. there is a dangerous tornado outbreak expected to hit the central u.s. along with severe flash floods. details are next. ♪

at comcast, we didn't build the nation's largest gig-speed network just to make businesses run faster. we built it to help them go beyond. because beyond risk... welcome to the neighborhood, guys. there is reward. ♪ ♪ beyond work and life... who else could he be? there is the moment. beyond technology... there is human ingenuity. ♪ ♪ every day, comcast business is helping businesses go beyond the expected, to do the extraordinary. take your business beyond.

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connell: two million people bracing for catastrophic tornadoes in parts of texas and oklahoma. fox news correspondent steve harrigan has the latest now from oklahoma city. steve? reporter: the wind here just starting to pick up. we expect it to get much worse over the next several hours. it's going to decline dramatically as we see hurricane watches and warnings over much of the state of oklahoma. the tiny town of geronimo, population 1200, was hit by a tornado on saturday morning, one of more than 40 in the region. several houses were demolished by an ef-2 storm there. three people wounded and it really kept security officials and first responders very busy during that day. >> the gentleman that lives in the house was out walking around and his wife was still stuck in the house. she was standing up through a window that collapsed on her bed.

reporter: what's coming next could be much worse than what we have seen before this. these are supposed to be long track tornadoes coming up. they are going to be on the ground for long periods of time and they could cause some real devastation. we have seen preparations throughout the day. schools are closed, we see military aircraft as well evacuated from the area. you see people in stores now buying what they can or rushing home. a lot of families getting their shelters ready for the night. >> take a shelter. i got my kids, they know where to take shelter. we are actually ready. we know if it starts blowing so hard, we know to go in the bathroom, get in the tub and take cover from there. reporter: the worst of the storms are supposed to hit overnight when people are at their most vulnerable. back to you. connell: some story. thanks, steve. now we take a look courtesy of kwtv. this is a live shot, looks like

the beginnings of a funnel cloud coming at the bottom of that cloud. tough to tell. certainly ominous. melissa: you hope everyone stays safe. we will definitely be thinking of them. connell: thanks for joining us today and every day. melissa: "bulls & bears" starts now. president trump set to make his very first visit of 2019 to the crucial battleground state of pennsylvania for a rally in just a couple of hours from now. the president is facing some challenges in the keystone state. the latest pennsylvania poll showing former vice president joe biden leading the president by double digits there. as pennsylvania state leaders now warn that tariff tussle with china is hitting home. this is "bulls & bears." i'm kristina partsinevelos. joining me on the fabulous panel, because it's usually a fun monday, liz peek, jonathan hoenig, gary kaltbaum