let's get back to honeywell.eywell has been better, really met on the news -- on the nose the revenue. people were anticipating bad news and there wasn't any bad news in the release. they were big on the margin side. .rganic growth 12% in their automation business. across the board good news and they raised a little bit with a quarter left. the best is behind us. david: --hina -- no mention of material cost. terror impacts. -- tariff impacts. alix: honeywell did well and the stock is up. we have the full screen that shows a beat or miss for some of these names and how dramatic the stock moves have been on the day they reported. united rentals, 15%. even though united rentals beat in theory, the stock still hammered. what is this telling us? karen: people have been worried for a while, are we at the end , prices are? people going to go down and they are very capital intensive. the tariff impact being bigger than expected. people went in worried and now they are looking for the things that are negative. the united

i'm going to use a honeywell example. we heard about moppet in the -- i was part of the group that was building that is the prime contractor. it was not designed to last long. it was designed to last five years. we are going on 18 years now, and it is still operating. it is a significant contributor to understand what is happening in our atmosphere as far as carbon monoxide. honeywell comdev did the -- all contributed to a science program. all of these are u.s.-canada collaborations. it goes to show you on the profiling radar that is an example of a subsystem, and moppet is an example of an instrument. it is all part of international partnership. in terms of exploration, everybody knows about the canada. if you look at the canadian $5.00 bill which is worth about $3.80, it has a -- on it. if you ask canada what do we do in space, it is the -- we've heard about the lidar supplied by mda. later on people will be talking about new space. if you are a senior executive in a space agency, you are looking at charts like this, wh

sticking in the same world but here we go with honeywell.avid cody was there forever and everybody loved opheim he is no longer there but he was replaced by by an insider there over a decade. and really loves to work from the standpoint of organic growth that's something i think is going to be very important really impressive guy. he has done an incredible job already early. has done a lot of different things to try to reshape the company process i think good forward, very proactive ceo. i look at the buyback. you talk about the fundamentals, it trades at 20 pe present sounds high but looking at the groekt it's not that high. and i think it's probably owe probably right where it should be might be a little bit of room to the upside for that to expand. the buy backs are strong and they've bought back almost 5% of the stock in the last six years or so. when you look at that combination plus the dividend yield this is a great fundamental story as well. the impressive growth. looking at the cash flows, the cash flows have jumped 29% year over ye

last week now report good earnings >> it stinks every industrial -- even the ones like honeywell. >> why is that >> i think it's a good excuse. there's that all the time. that hams and gives you your looks, your chances over the long term. i do think given the macro concerns and not these perfect reports, there's one little thing going on in each company makes it easier to sell off the stocks later this week we get technology earnings and i think technology and health care will actually be very good. >> important to the overall market netflix rallied for a day or two. and that was it. >> i agree with you on that. i think netflix has issues with competition. i think there truly are bigger picture questions with regard to netflix. i don't think there's bigger picture questions with the cloud, microsoft, amazon, google, not even with twitter especially since it's come down so much. i like the setup of tech and health care. industrials on the other hand, you have to pick your spots. >> 11% in a month. the home builder etf down 22 of 24 days. some of the other names. >> i think partially

you look at earnings today you guys just got done talking about procter & gamble and honeywell.what drive markets with that -- with good earnings, we should continue to see the market go higher but, you know, in my career, i can't really remember a market that's got so much noise around it and that causing people to really question their investments after time or maybe have a little bit of a -- it seems to me that the holding periods for people have never been more divided. what i mean by that is people are in for the quick hit on bounces. or they're saying, you know what i'm going to have to ignore the day-to-day for a few months here because if i don't, i'm going to drive myself crazy and shorten my holding period. >> it wasn't long ago that we were saying this going into the midterms, this looks different than what we usually see and what we usually see going into the midterms is a selloff followed by a rally after the election's over. and given august and september were so good in terms of the market doing well, we thought maybe it would be the opposite but it looks like we

the honeywell is great but they're talking about tariffs.ause it is tariff talk. that's again so incredible higher rates and tariffs you have to look at who the prism of those i know jay powell does not want to think about these if we don't focus on that, we say by honeywell 158 i owe the viewers the naturrati of what's happening right now. they're not ready and that's probably not exactly because i spoken to tariffs. he's completely ready for tariffs. analysts don't want to recommend any stock that are directly influenced for china global and gemini is -- who's global, the united states or china? it is not about tax. >> it seems to be what the ma market is going into slowly. this is something that's going to go on for quite a long time >> you will hear about china proxy. >> we said it many times and you reference during the "mad dash" that there are concerns and it will spill into other areas and it won't be for tic-for-tat. it will spill into antitrust i will tell you that people close to united technologies are still confident. >> what is

is rallying from 352 to 362 as the conference calls end whether it's last week with netflix -- >> honeywell, cat, utx, jpm. >> you have a market that continues to not rally on good news but yet focus on the negative news like a caterpillar, focusing on negative news like a texas instruments, it means continued volatility and as long as we'll see continued volatility uribe not going to get the stabilization we're all looking for to buy stocks. >> i would say what the market is doing today is not a bad thing at all if you're still bullish the market, yes, you want some retests. retests generally don't happen one time you're going to bounce around, go test it one thing you don't want to see is a full-blown relapse and go even lower but this is a pretty decent signal, i would say. >> absolutely. what we had yesterday and you kind of came back and today started off really badly, if that had continued through the day, i think then you would have said, well, the bottom is not close. elections will be done we'll figure out where we're going to be with china we'll have focus a little more and will s

on wednesday, cramer fav hon honeywell holds an analyst meeting. i like this company for its restructuring, hence why we own it for charitable trust. you can follow along by joining the actionalerts.com club. honeywell is going to talk about the spin-off of the residential heating, ventilation and air conditioning business called residio, combination of presidio and residential. this is not the time to own a housing stock, even though they have the best thermostats in the world. i have one the honeywell spin-offs have worked thursday walgreen reports. amazon is still putting enormous pressure on everybody's margins, though they're raising the wages for people, and costs keep rising thanks to tariffs and rising gasoline prices however, like what its rival cvs has been up to with the aetna merger more importantly, right now we're in the grips of a serious inflation scare. you know i think the worries are overblown, but trying to fight this inflation narrative is like jumping in the front of a speeding train what could change my mind? well, it could b

we will be getting earnings from procter & gamble and honeywell. futures are positive dow futures up 34, nasdaq up 15 and 3 quarters. lauren: flipping screen to europe, stock trade to go downside. cheryl: taking a look at asia, big news out of there, china reported poor economic growth bf a downward slide for china stocks there was jump, government taking big steps to reassure investors shanghai composite ended up 2 and a half percent. lauren: look at that. the lotto grips the nation $1.4 billion up for grabs, you do have a chance but you better know the odds before you buy tickets, fbn:am starts right now ♪ cheryl: we are coming at 5:01 a.m. in new york, friday october 19th, good morning, cheryl casone. lauren: always good to say it's friday. i'm lauren simonetti. pressure on china's economy, beijing is out with worst than expected read for third quarter, second biggest economy expanding 6 and a half percent, however, slowest rate of expansion since financial crisis back in 2009. cheryl: exports rose despite china's trade dispute with the united s

the customers are these big companies like ge and honeywell.ing to see slowdown get past the long. alix: thank you so much for joining us. we are going to turn to another sector, that's technology. we will see amazon and bloomberg. this is bloomberg. ♪ david: breaking news. toldttire prime minister bloomberg that 2.5% is a cap. they do not have any plan b. deficit, 2.4%e compared to gdp. that will be our cap. ifare ready to reduce necessary. there is not any plan b. we are not gamblers. we are not basing our kids future on roulette. bonds in europe and by btp's came up. we had selling on the margin in the 10 year and you have euro-dollar paring gains. percolating in the market. he went on to say we are open to negotiation. we want to talk to you. a dialogueut to have with the commissioners. i am moving forward to talk with them and to explain details of the budget. they're going to ask me to change the measures. it will be difficult recovery cannot affect the. difficult because i cannot affect that. the italian not government. he said we are no

honeywell was great.f you hear larry kudlow say you no what, all the stuff with china and you may not think it is all this stuff on china, we are going to put it on pause, you know how we feel and we make our point to the electric and we don't want them to interfere in the midterm. interfering directly that's going to make people say okay, why didn't i sell? you better have a good reason to sell down 2% i don't have a lot of good reason to sell down 2% i just don't >> on united technology, it is not just of the question of the rockwell deal that we have given you gregg hayes' comment on. it is the expectation that the company is going to slit itself up after the rockwell deal is completed. mr. hayes did say listen we are going to talk about it in november that's when they're planning to discuss that and having said that so as the ability on the board to make a different decision right now we are on track and i made my view pretty clear since mr. hayes. focusing on over the long-term he does say the board

honeywell reported much better than expected but the back drop is so hideous. today, united technology had a similar day. greg hayes says he believes he believes he can make the acquisition happen held up by chinese regulators. united technologies can break itself into three separate companies, aero space and climate control and elevators. by the way the otis elevator business saw a 14% increase in chinese orders as the prc is aggressive about the building stocks. honeywell, you should say, listen, this quarter was every bit as gold as what hayes delivered. what else, how about verizon verizon, gave you -- very low churn. big boost in subscriber numbers. this sleepy stock, it closed with a 4% gain in one day. that's astounding. of course, caterpillar plunged 7.6% but i have never seen a two-faced analysis offered about this tremendous company. it was insane. do you know what the truth was they reported fantastic quarters but what you heard, excellent chinese orders the short wasn't as strong as the first quarter but so what, they told you it wouldn't be it was

honeywell reported better than expected earnings and revenue this morning.olence escalating, the congressional baseball shooting taking place over a year ago now but republicans are facing new threats every day. and the search for hq2 goes on, a new development in amazon's search for a second headquarters, the details coming up this morning with the stock trading up going into the open. lebron makes his laker debut, kicking things off with a slam dunk but the game not going l.a.'s way. we have all the highlights coming up. rean bowed ourihanna bowed out r bowl half time show. the golden girls cereal hitting grocery store shelves. it's selling out fast. that is great. all those stories coming up this friday morning. joining me to break it down, dagen mcdowell, kevin kelly and fox news contributor liz pete. great to see you this morning. >> good morning. i want some of that cereal. maria: me too. >> that's amazing. >> we're talking about amazon's hq2, jeff bezos has been particularly quiet considering he owns the washington post, about the saudi arabian situat

this is the actual propaganda from honeywell.ncome margin of 40 points. what is stunning to me is the tax effect, the trump textile of free cash flow at 51%. this is an example of the tangible corporate affect of this tax legislation. >> and we have seen that. in the seen an overall markets. we are seeing earnings growth in the third quarter. we think it will come in about 20% year-over-year. that is far above what one would expect in the 10th year of an economic expansion when margin start to come under pressure, when really you're supposed to be relying on your revenue growth. company have in the market overall. it is important to remember that should fade come 2019. professor hormats, do you look at the tax bill as a one-off? >> yes. it is certainly a big boost, but it is not recurring. it is not a recurring boost. you will see big improvements now on the base of this. the other thing to bear in mind, corporate revenues are up but corporate tax payments to the federal government are down. the notion this is going to pay for it

numbers so far and we have seen some individual stocks not rallying into that, whether it is netflix, honeywell, even some of the other names that we had in the energy sector and elsewhere. it is doing well but just not good enough. when you see amazon and these highfliers report next week, you pay attention not just to their forecast for eps but for margins as well. vonnie: romaine bostick, thank you. stay tuned. china's severe international situation disappointing third-quarter gdp numbers coming out this morning, marking the slowest economic growth in the country since 2009. the vice premier pushed back and it as an investment opportunity. is our guest from the rhodium group. do we get another policy boost in order to help china along or is this situation manageable? >> i think we are already getting a policy boost. if you look at the government's response function, they have been easing monetary policy, we pulledcal leaders being more significantly on the infrastructure spending. third quarter is lower than expectations. expectation is we see expectate fourth quarter surprise on the upside.

honeywell, 80% of all satellite communications have equipment on board. so that's well over 900 spacecraft. and then you have the ground segment that goes along with that. we have a fairly significant there. the only reason i put up and don't want to steal michael's thunder at the end, and is not because of the discussion we just had. the traditionally provided those transponders, repeaters, they did the last one. and then they are coming up, which will be canada's contribution. it's going to fly on gps 3. as far as i know and i'm going to look at you guys, i think we're the only nation that's been invited to participate on gps 3. so we're the only country that watched me supply equipment. which is a fairly significant accomplishment. we heard how critical and strategic it was for everybody. so you heard about the radar set. i was a project engineer a good portion of the payload early on and this is where you get a real appreciation for how integral it is to have good prime contractor, a good government. driven space agency that's driving the program in a

. >> was as we go we saw the y graphi like honeywell and next era energy. things for joining us tonight mike with fbb capital partner/8. >> thanks. >>> and finally tonight the country is obsessed with megamillions. and so are some of us at acast. the jkpot as you know is $1.6 billion. and people spent t day dreaming about all of that green. >> i would b a 747 jet, okay. . a retired one have it gutted edaren't innovnd converted to the a home. >> buy a couple of houses, travel the world. probably just enjoy irlife. >> of all, i'd help my family. and my >> if i got buy the new orleans saints i'm a big fan of the saints. i would buy thafranchise. >> a mansion and i'd get my own room and my sister get horse own room. and a ps 4 and big screen tv. >> but allow me to be the voice reason in the end the game comes down to simple math and very long odds. according a statisticen from columbia verse to convert the odds of 302 million to one toth sog tangible it's like laying820 miles of pennies edge to edge in a line that would extend west from new york city to los ang

and honeywell have open sophisticated plants in. china in the past decade sending jobs overseas from the united states while china was once a final assembly point for foreign made components domestic content of china's exports have risen from about sixty percent a decade ago to about eighty percent today so while trump administration officials claim china has an unfair advantage its export machine only continues to grow reporting in washington dan cohen r t. and time now for a quick break but hang here because when we return we'll be joined by the c.e.o. of the. arm to discuss today's trading record it was up above twenty twenty seven thousand intraday but down to about twenty six eight twenty eight right now plus there's new auto news we'll take a look at a few car company stocks as well and we'll bring you an interview from the ford's under under thirty summit this one is truly out of this world and as we go to break we'll be right back in a flash. the way to the united states is dangerous for most of the illegal immigrants. just

has oepd an investigation no honeywell kpt account be .company said it's cooperate processing. orted better ey r than expected earnings in the recent quarter but warned the ongoing trade war between the u.s. and china will pressure margins in 2019 potentially costing it hundreds of millions of dollars. the stock fell 1% to 153.47. >>> trade concerns have apparently eased at kansas city southern. the railroad operator said today it supports the reworked trade agreement between the u.s., canadand mexico. and added that steel and aluminum tariffs need to be worked through as the ceo put it. the company also repted a 30% increase in profit for the most recent quarter. shares rose more than 3% to 106.12 today. andst not often a ceo belittle wall street analysts and d investoring the company's earnings conference call but that's what happened today when the head of cleveland clifrs id analysts can't read numbers his words. he also went after one unnamed person with jarringanage. >> you are a disaster. you are an embarrassnt to your parents. with in being said, we are going to use mon

biging behind some of their rivals like united technologies and honeywell.ore the report the credit analysis said they were trading to a triple d. >> a lot of that is priced in. on the front end of the curve spreads look tight. on the longer end of the curve they are trading wider relative to some of their triple b rivals by about 30 basis points. ge had talked a lot about their net debt target. relative to some of their rivals their average with companies are dan herne you tx, they way above some of the a rated peers. really interesting to see how they deal with the deleveraging. ourie: taylor riggs with stock of the hour. this hour it is general electric. thank you. 30 minutes until we close out the european markets for the session. doing a little bit better than some of the other markets. the dax had a tough day. the market i want to focus on his foot demand. .- is the ftse mid we will talk about that in the next hour. this is bloomberg. the closes next. -- the close is next. ♪ jonathan: 30 minutes left in the european trading day. from london, i'm guy jo

we were in indiana after days ago sitting down with workers who worked at the honeywell corp..hese people were promised efhealth-care benefits after thy retired, but they were lied to by the corporation which took away their benefits and what we are seeing not just in indiana that all over the country, nsrporations that make billions of dollars in profit and pay their ceos tens of millions in compensation turned their back on the workers that made their companies great. [applause] and our message to corporations is whether you like it or not, we are going to stop your greed which is destroying the nation. [applause] [cheering] and then i was in iowa and we do large rallies but before the rally we sit down with some folks we sat down with a group of people mostly women and i talk to people like us were in their late 20s a single mother and she said for seven years i've been working at a job as am single mom and i make $8 an ho hour. what we say here loud and clear is $8 an hour is a starvation wage. it's not too much to ask if you work 40 hours a week do not live in poverty. [ap

gpx no longer has the half of the honeywell balance yout behind it, but what do plan on doing to convinceers that you can, indeed, aspire to great things on your own? we need to recognize that we are a technology company. now have even more opportunities to get our story moving forward. where not the classic auto supplier. we have been pioneering technology for the past 60 years, working on turbochargers. olivier, talk me through how the business is going to evolve. we have been talking of a lot about tesla -- we have been talking a lot about tesla. they have better cars, reliability, all of the things that will be the future of automotive technology. how does a company like you make the transition? how quickly can you make it? olivier: for us as a company, vehicles.ll kinds of it is great for us because the will come from hybrid vehicles. that is fantastic for us. it is an opportunity to put new technology on those vehicles. i thinkg to batteries, it just shows that there is a cross issue for the time being and we will see huge growth for the industry. the vast majority of those vehicles

unacceptable from a great american company the worst thing is that 3m has no one to blame but itself honeywell delivered terrific numbers. it has a mosaic of business that thrived over the old ceo now, ever since mike has taken the helm, he has led 3m into the dust how about illinois tools a fabulous mix not dependent on any one sector today they told us that they sold auto specialty products and polymers and fluid stock lost nearly $7 today along. we hear from bristol meyers tomorrow, but it looks like bristol meyers has fallen behind the rest group. however, merck still keeps getting stronger i am used to all of these form of stocks trading together eli lilly has become unstoppable not to mention its spin off. maybe bristol meyers will surprise me to the positive tomorrow, but if not this is all about poor execution boeing, keeps performing amazingly welling. which is why the stock roared today. even as the rest of the market got slammed again. terrible aerospace sometimes these divergences are hard to see. what you buy, worried by a slow down let alone a recession in terms of ex cushioecuti

also give us a preview of what the new honey well will look like honeywell has been a good pick for my travel trust. you know what has been a terrible one, where i screwed up slumberger refusing to increase drilling budgets. it has been a severe disappointment will proctor and gamble. if there is any additional growth or any better, a restructuring stock can fly. last but not least vf corp doubling down on high growth brands like vans especially the luxury related ones have hit a wall in part because of worry of trade ba barriers and the numbers can't be as good as they were next year after a week of seemingly endless selling including today, it cowl be volatility selling. acknowledging nation weakness in the system let's go to naveen in texas. >> caller: my question, what are your thoughts on new tannic in the longer room snoo thank you for that question, it was up very big today there is a host of rumors that drove this stock down. it is still a $7 billion company and still losing numbers it is up three today and i say that it is a great company and doing well but for the long-term,

amendment here >> these people were making much less and suddenly, they're making much more and honeywell has done remarkable stuff making these places more automated. i wonder if the automation does not offset at least to amazon. >> they change dramatically over the last four or five years in terms of this you say the number of robots that are doing things that were not done you still need somebody to pick things they can't do that in terms of covering 13 miles and a shift, that has changed to some extent. we are still talking about worldwide amazon has 575,000 employees. we are talking about 250,000 employees that'll be affected by the $15 minimum wage and another 100,000 seasonal employees it is important to point out earlier this year, carl, i remember you talked to mcmilan sometimes ago with walmart, they're at 11 bucks right now with 1.5 million associates in the united states. a lot more ofthem are making closer to that number than the 575,000 overall and amazon making closer to the $15 >> the amazon news does include some workers in london we keep on looking at these ten poll mome

its does have a smaller market value now, ge and honeywell below that it has been a while. boeing is twice the size >> the business of ge is quite strong the aviation business is a jewel without a doubt. it is weighing down by the disaster performance of its power and division it does continue to have a plan to celebraseparate out part of s healthcare decision. larry culp did say you should expect us on two things, an orderly fashion in several years to implement the objectives of selling down baker hughes. he also said we are still at the healthcare that it is operating at independence is probably what's best for the business and the team timing and sequencing change and relatively of some other things we are working on. it is too early to tell but it is certainly something that he and the cfo have been talking about. >> you keep your good and you sell bad >> nobody from ge is going to look back. that's the problem with ge everybody wants to look forward. that's not what a smart company does a smart company looks backward and trying to figure out what's wrong. >> the compa

shares of honeywell are high today. earnings beat estimates -.nn technology was richest woman, but she has lost 66% of her fortune. this is not just china, but it goes back to tesla. romaine: right. they made the touchscreens for tesla. it shows you how integrated we are globally. caroline: and how the mighty fall in terms of their millions. romaine: absolutely but she is still a billionaire. caroline: she is still wealthy, but it has been brutal in chinese stocks. this is bloomberg. ♪ rg. ♪ i'm all about my bed. this mattress is dangerously comfortable. when i get in i literally say, ahh. meet the leesa mattress. a better place to sleep. this bed hugs my body. i'm now a morning person. the leesa mattress is designed to provide strong support, relieve pressure and optimize airflow to keep you cool. hello bed of my dreams. order online. we'll build it, box it and ship it to your door for you to enjoy. sleep on it to up to 100 nights and love it or you get a full refund. returns are free and easy. i love my leesa. today is gonna be great. read our

and china -- honeywell, boeing and caterpillar saying they are nervous. the ratcheting up of the u.s.-china trade war has been going on for nine months. started at the beginning of the year, seems like it has been forever. each time there was a stage where the market said this is temporary, it is going to be over soon, there will be a truce . that is changing. the news today, bloomberg had a great report on the details of mnuchin's comments about the threat of currency manipulation. you pile that on and invoke a 1988 law and say we will interpret this with the 1988 law, not the recent statute. you look at the trade war, the tariff wars which are invoking law which was designed to protect national security and written half a century ago or something like that. you say, what's happening here? the prediction from peter navarro in the beginning of this was we will settle this. it will be quick. if you remember the interview, and there was a column in the wall street journal of march this year, look what has happened. the forecast are wrong. all sides are digg

counties like honeywell also fell after similar warnings this month.er industrial taking a hit, 3m. after lowering its profit forecast once again as sales dropped. third-quarter numbers are pretty good. that is not the issue. it is the outlook that is not doing it. >> the numbers are not the issue. in fact, if you look at s&p 500 earnings, almost a quarter of stocks have reported. all but 15 have beat on earnings. if you look at the average price reaction in the 24 hours following the report, they are down half a percentage point. clearly the numbers are looking good. it is examples like we saw with caterpillar, where they beat on the top and bottom line, but then executives talk about what may be perceived as peak earnings. now we keep seeing this trend about higher input costs. it is having investors question what this means for margins going forward. >> microsoft's first-quarter numbers are in. it looks like its cloud business is still driving growth. profit and sales exceeded analyst estimates. revenue was up 19% to $29 billion. revenue from the az

. >> the consumer is always front and center >> in terms of industrials, you had the honeywell earningsween gains and losses again, the impact of rising costs, which seems to be this emerging theme in earnings >> that's going to do it for us on "squawk alley." over to scott wapner >>> david, thanks. i'm scott wapner is the steep sell-off in china and fears of a bigger slowdown in europe even more reason to stay invested in u.s. stocks after a wild week for the dow, when will this volatility end? it is noon and this is "the halftime report. >>> chinese slowdown, euro-fear, will it hurt the u.s. or make domestic stocks bust out of the slump? plus, a host of bi

today, honeywell reported a monster good quarter i was so thrilled. i walked in and said, wow! someone talked about tariffs and next thing the stock is actually down, which, in fact, it's pretty insane. it's mighty hard to trust the industrials. the feds are not exactly making it easy, either. since united technologies has housing exposure, chinese exposure, pass caterpillar should be tripping a link to china slowing. link to construction in this country slowing, living to mining, eh you look at how united rentals got annihilated. they got annihilated after reporting a solid quarter. more on that later it doesn't bode well mcdonald's on the other hand could be, yes, the son of procter & gamble eighth coiled spring it's a dynamite story about the return to growth in the u.s. all these guys are a fabulous executive. he is invigorating company sales with franchise pleasing numbers. they are important and with great technology and a lot of good, thoughtful ideas wednesday we hear from boeing. the area ro space industry is so strong, even some negatives about china, not that i expec

commercial and consumer goods companies that make items you buy every day like general electric, honeywell of dollars in partnerships with saudi arabia. >> yep. so that starts to explain some of the hesitancy in taking a strong position on something that should be so obvious to take a strong position on. joining us from boston is a senior fellow at university of beirut and known jamal khashoggi for years. you made a point in an op-ed to say your knowing jamal, you haven't been that open about that right now because you want people to understand how frequent this sort of thing is, the mistreatment, the miscarriage of human rights, the mistreatment of journalists and across the arab world, not just saudi arabia. >> that's right. i think there's been a lot of people talkingn't h about how t know jamal and talked to him recently and i think he would say that's not the point. he has created a lot of interest in the u.s. and the west and some serious pushback now by political forces and the u.s. and other places but jamal would be the first one to say that this is really about the condition of h

in other words, you look at some of the industrial names, deere, honeywell, i would like to say mascot doing well because of industrials. dow dupont, good ol' industrial names are steady. that is the value trade to go from growth, tech, to value, industrials. that is i think what you're seeing here. interesting the market not saved by jpmorgan. >> because of earnings. charles: they were strong because the stock was worst performer on the dow. why i think friday was amazing session and today also. >> yep. charles: we gave up 400 points early in the session. gave it all back. >> yes. charles: then all of sudden rallied again. up 300 dow points without leadership from jpmorgan and financials, going into a weekend that told me something. that to me was a buy signal. >> there have been a number of technical buy signals. we we read company transcripts unlike evaluations. some of the technical signals, whether the s&p oversold indicator that's gotten extremely oversold or the third most oversold in about 10 years. if you look at the fact three quarters of the s&p 500 stocks actually were tre

. >> and an eye on investor earnings, kansas city southern and honeywell to name a few. >> let's go toge and the half >>> i'm scott wopner, the question is the bull market more at risk today than it's been in the past eight years or have investors become just too fearful of rising rates? your money might hang on the answer this is the halftime report we're getting right after it today with the markets selling off at this hour we want to discuss and debate with our panel today we have with us, one of the biggest stories of the day, joe terra nova lindsay bell is with us, cra's chief investment strategist. let's begin with the markets, stocks are at the low of the day,

to run honeywell, a major conglomerate.. i don't think conglomerates are out of favor, it is leadership. francine: conglomerates are difficult to manage, especially when thing is moving to tech valuations and everything is being automated and sold online. if he talked about industrial conglomerates, they are not being sold online. they are being sold as they always have been, business to business. what is lost there is the importance of either you innovate or you will evaporate. tom: you mentioned a conglomerate and what are the best practices that will be brought to ge to not make another conglomerate? robert: there and i worked together in receipt, wisconsin and he haswisconsin clear direction. they sold $1 billion of assets in a portfolio with 20 companies. he invested money in 20 experience. that is what he did at danner. will bring clarity and frequency of communication to the people. i have to ask this question could wear down 35% in the ford motor company. four?ould you do at mullally was there and everything was won

if you could buy -- name your favorite and it is down 10% -- >> honeywell used to be the favorite. >> hold on it depends on, as steph said and made it clear and i want to underscore and reiterate, this is a two to three year. >> yes. >> horizon for any kind of changes positive to take place. >> of course i agree. >> you are looking at a stock that has come down so much, 40% year to date, 50% over the year. ten bucks, why not add to the position. >> here's why. steph wants to take a big position it takes time. she wants to be in it for the turnaround you could miss 20% if you blink your eyes. i get that idea of buying early knowing you could be early for some people they have to for an individual investor who does not have to do that, does not have to leg into $100 million, $500 million position, really, this is a stock that on the charts has shown you absolutely no indication that it is turning there has never been any indication that the down trend, which is now years, is showing any fatigue. so you can wait. >> larry culp is the guy at the right time at the right company to do it. >

. >> the consumer is always front and center >> in terms of industrials, you had the honeywell earnings fluctuating between gains and losses again, the impact of rising costs, which seems to be this emerging theme in earnings >> that's going to do it for us on "squawk alley." over to scott wapner >>> david, thanks. i'm scott wapner is the steep sell-off in china and fears of a bigger slowdown in europe even more reason to stay invested in u.s. stocks after a wild week for the dow, when will this volatility end? it is noon and this is "the halftime report. >>> chinese slowdown, euro-fear, will it hurt the u.s. or make domestic stocks bust out of the slump? plus, a host of big calls today, apple, amd, disney and more. and get set for a huge earnings week we'll get you ahead of the game. "the halftime report" starts now. >>> welcome. great to have you with us on this friday. jim lebenthal, josh brown, steve weiss, we begin with the markets today. josh, give me your point of view here you get this weak china growth weakness since '09, issues with europe whether it's corporate earnings, ital

. >> and an eye on investor earnings, kansas city southern and honeywell to name a few. >> let's go to the judge and the half >>> i'm scott wopner, the question is the bull market more at risk today than it's been in the past eight years or have investors become just too fearful of rising rates? your money might hang on the answer this is the halftime report we're getting right after it today with the markets selling off at this hour we want to discuss and debate with our panel today we have with us, one of the biggest stories of the day, joe terra nova lindsay bell is with us, cra's chief investment strategist. let's begin with the markets, stocks are at the low of the day, fed minutes to suggest and draghi comments, warning about italy and other members of the eu sort of a stew of uncertainty at this moment >> scott, we were doing okay until about 11:25, 11:30 i mean the s&p was down about .3%. where it broke to new laws and went down more than 1% when when steve mnuchin tweeted that he's not going to saudi arabia for the future investment initiative that's an observation. that's fac

the honeywell's we have seen, have you gleaned takeaways yet?e is a place to hide. the collection rates are strong. air travel demand remains strong. that is one place to look to pick up on what you are talking about supply chains. bottlenecks give for suppliers. companies say they can make shifts until disruption and extra costs. look at how companies are able to manage that, does the trade war have an impact? david: we see companies talking about changing their supply chains. what is it due to margin pressure? >> there will be some expense because i think that is logical .ut i think it will accompany you talked about aerospace and defense. the other part of the given to sting is transportation. if you look for topline growth, good margin going forward, these transportation stocks ahead up above most. yeah. where does that leave the united rentals? of what you can define transport, because their earnings do not live up. david: we are talking about rail and trucking and every now and then come airlines. i would not put united rentals. david: how

ramy: honeywell on friday 100cally said they see millions of dollars looking ahead even though they beatrnings. we see industrials like bowing and caterpillar fall. boeing you think -- and caterpillar fall. what do you think needs to happen before it starts to clamp down? add trade19, you can and tariffs into that equation, where there is the u.s. economy will start to feel the heat from slowing down. probably and to the first or second quarter next year, you start to get some impact. the earnings result you have seen to date, we have a big week of earnings, so we won't say it has completely been a success. a positive so far, but big numbers this week from amazon, google, twitter, and some of the banks. we will watch closely to see if earnings season ends positively. volatility around the geopolitical risks. but fundamentally, the u.s. economy zynga check. probably looking -- economy is in good shape. ramy: fear of inflation on one hand. we are seeing fed rate hikes. possibly one here in december. the passing on of costs to the consumer, possibly overheating, do you think? what are your

. >> as opposed to when he went to see honeywell he said you have good ideas.ted it ecnolotechnology i ths cordial. >> you need to know when you will bring it and when you don't. this will evolve. the record date is coming up soon. with the meeting on the 29th we'll see. if he still thinks he can somehow hope to have a dialogue that could potentially get him some of the family's votes then he is not going to go after them hard. if he thinks it is a lost cause then it is tougher. we will speak to bob pisani and go to rick in chicago. this might be a chance to -- >> these are not cannabis-infused chuckles. >> they through is no cannabis. >> only 180 calories per package. >> who makes these >> a private company. i don't know the company, but i have to tell you it will take you a while to chew these. >> product of mexico. >> it's not nafta. when these are sir fu-- >> i'm more of a sour guy when it comes to these things. i like the sour patches. >> lemon heads. they make lemon heads, too. >> global economy right here. >> these are made in mexico. this is what the ne

for sales growth >> no, it is not and that's why a lot of these stocks are going down i thought honeywelluarter were terrific >> i think we are too deep to be out. the one that starts with an a. >> someone says nike is going to be able to move near sneaker manufacturing out of china apple is the most chinese company that we have i can't think that anyone is going to be exempted remember the economic policy before it passed away. i am like a diplomat to the associates i think that's what you are going to see here unless the chinese start to come to the table. we'll prove it and you and i both know it is going to be approved and that could be the next -- >> listen. i get asked this a lot >> you do? >> more than how your son play on defense >> the antitrust concerns of china sort of bleeds into the worry of the mma mark, it reaches that level there is conferenidence the confidence they are basing their confidence on, can they be confidence about that. it only come down to one guy, the premier itself can you imagine saying no. >> we are talking about two big mma deals that people do not under

. >> let's get to the hoping bell, first one of the quarter at the big board, garret mosen, honeywellnd celebrating hologic, focusing on women's health >> they're up huge 84.25 last week to 87.375 last week the bonds are roaring. >> wow >> the bonds i got it the bonds are important. looking at some things here. >> i am sorry. get them on the phone. i think it is interesting to garret taking to cell to start people don't like garret because of auto. honeywellloses auto, that's going to make it more attractive people are worried of the electric cars and the kind of turbo charging that's out of sync jesus, sales how about give it a chance all we are saying is give garret a chance >> apparently they did not want him. >> as for ge, it is going to take you back to the 19th and the middle of september basically after the terrible run that it had over the last two weeks. >> we want no more surprises the power right down was s so -- everyone knew the power right down allison field, one of the worst deals. flannery had fingerprints on it. >> he did. ge is marked by deals where they pay too much

commercial cooperation worth over $10 billion with 14 american companies including big names like honeywell jamie dimon are among executives that are slated to attend and it remains to be seen if we'll see any backlash there. back to you. >> thank you >>> here to talk about the fallout robert jordan is with us president of energy and also a foreman exxon arabian golf resident welcome. >> how much of an impact is this business backlash going to have on the kingdom >> i think it will be quite substantial. it has fallen since the financial crisis this last year it really fell off a cliff. a lot of this was in the wake of the arrests and detention of many princes and business leaders. i think we may well see it drop further as a consequence of what appears to have happened here. >> jerry, this latest round of announcements by companies kind of disengaging from this event that's happening, obviously has become some what about public relations not wanting to endorse these alleged acts by the regime over there do you think it will lead to more of a disentangling? is that feasible >> i think there

they can raise prices as much as they want and aerospace was incredibly strong for honeywell and technologyhat's the area of the economy is holding up. i do think some part of tech, the cloud will be good texas instrument, they're in every single device. you have to figure out where the weakness is. illino illinois -- 3-m was execution yesterday and horrendous how long can this fellow roman stay at the job when every single business is showing weakness >> the big debate today will be whether texan or macro or micro story. they are in everything >> let's do texas and the chips now and we'll do at&t in the next blog. you referenced this. investors hate uncertainty and analysts are looking to change their number when they hear the ceo of texas instrument, you reference this this is driven by a slow down and semiconductor, we can't speak to any macro driven event here any of the trade issues are minimal. all we can judge is our customers and the signals they send us and that's what we are basing it on there it is. then everybody else have some questions based on the answer and they don't get it

tariff in their calls. 65% did not. 45 companies, you can see them here from harley-davidson to honeywell, ford, costco, a broad range of companies mentioning tariff in a negative way most had better results because they pulled and 14% mentioning t tariffs. some of the quotes we got ceo said i would expect pricing would increase next year if these tariffs are in place it gets passed down to the consumer in one form or another. we heard an awful lot of that. dana said we thought it was a $10 million a quarter. now with tariffs we expect it to be closer to $12 million, 13 a quarter and others if the tariffs go up now in a separate survey the national association finds 77% of companies said they haven't changed their business in response to tariffs but 23% had and most of those were negative you can take a look at some of the things they answered 10% delayed investment the big place where we saw this, the goods producers, about half wage prices. 38% delayed investments. back to you. >> so that's narrative out there. it goes like this. companies are feeling the impact of tariffs first through