the world's biggest earth moving equipment to make us caterpillar has raised to twenty eight hundred profit outlook after posting record or second quarter earnings revenues were up by almost a quarter to bring in fourteen billion dollars the illinois based company credits the result to rising global demand to specially in its business with china as well as increasing oil in shale gas production in north america caterpillar has been expected to news revenues because of the u.s. china trade to speech. so spiritual financial correspondent yen is core to on wall street yes cassava seeming to shake off any of those trade tensions with china can we expect this to last. there are some challenges ahead of caterpillar especially if you look at the higher tariffs on steel and. that in q greece's costs quite a bit to caterpillar just here on a monday announced that cost because of the terrorists this year might go up by as much as two hundred to million dollars they're quite confident that they can come up was that it was increasing prices and then olds all the overall environment is not bad fo

caterpillar feeding on earnings and revenue.cast coming in $2.97 for the second quarter. willw of s&p 500 companies report earnings this week. there was a, and call over the weekend saying facebook's plunge last week was a sign of a strengthening market. i want to ask our guests, do you agree? >> i am not sure i would call it market.g i would say, is this a sector rotation or just a catch-up of the market leaders? you have to seek new leadership, back. these stocks are priced for growth kind of at any cost. they were looking at the growth and saying we will pay anything for that would with facebook, we saw a change in the profile. suddenly, the math starts to change. we will see what happens, but i think you will see sector rotation. david: as an investor, there is positioning that gets retrenched and it is time to change, as opposed to larger macro factors, such as tightening or a backing off of easing, such as potential trade risks or global growth risks. >> i do the micro bids. it is clear that late cycle, in and the especial

earnings just out from caterpillar. earnings of $2.97 a share.ove the consensus statement of $2.73 revenue also topped forecasts. and they're raising the full year earnings outlook. stock's up 3% in the premarket so apparently the last quarter was not the high water mark. >> yeah. they were originally at $9.10 a year now between $10.50 and $11.50. definitely a raise there let's see if that helps the stock. >> it is now >> one year performance, higher by 27% not bad. but last six month performance, it's gone nowhere. >> part of the issue is obviously trade and -- this has been in that mix of wondering what's going on with the trade impact on the company moving forward. stock's up 3% this morning at least right off the bat. so that's a pretty decent move off of a beat and a raise. >> let's talk more on trade. we're joined by -- >> glad to be here >> how do you assess the current situation with trade considering the meeting that the president had with jean-claude juncker that led to the truce between the u.s. enae eu and yet the situation with china

>> there are challenges ahead of caterpillar.specially if you look at the higher tariffs on steel and aluminum him -- aluminum. they announced that because of the tariffs, this year may go up as much as $200 million. they are quite confident that they can come up with increasing prices. the overall environment is not better for caterpillar. we saw mattel your prices -- material prices go up. they are bigger producers of machinery for the mining industry. have hired their forecast for this year. wall street seems to be a bit skeptical. >> talking about those tensions, we have tyson, the biggest meat producer in the u.s. issuing a profit warning. >> the broader agricultural industry is one of the few in the u.s. where you see a trade surplus, winning those companies export more than import. with tariffs and countermeasures from countries like china or mexico, we do see that there was quite some pressure on the meat industry. prices are falling. these prices hit the lowest in about nine or 10 years. that is why tyson food saw the ne

there are some challenges ahead of caterpillar especially if you look at the higher tariffs on steel and. that in q greece's costs quite a bit to cater piller just here on a monday announced that cost because of the terrorists this year might go up by as much as two hundred two million dollars they're quite confident that they can come up was that it was increasing prices and then olds all the overall environment is not bad for caterpillar we saw material prices go up there also a big producer off equipment machinery for or the mining industry as you mentioned they hired there for cars for this year but wall street seems to be a bit skeptical and the stock actually traded to the downside by almost two percent talking about those tensions with the tyson the biggest meat producers in the u.s. issuing a profit warning to the ratcheting up of those trade tensions i mean tell us more about that. yeah the broader agricultural industry usually is one of the few industries here in the u.s. where you see a trade surplus meaning that those companies of the sector are export more then it import

there's a great move for caterpillar.is what matters the macro backdrop and that's why the earnings are holding up so well. that's why the sectors are just fractionally from new highs here the nasdaq had a rough day on friday nasdaq about 3%. the s&p is 2.5%. everything is 2% from the historic highs, essentially. the big issue is whether or not we're seeing any kind of leadership switch. i mentioned last week the market leaders, the first half of the year the russell 2,000 and the faang stocks this is happening today. the faang stocks, david, i currently noted they're done noticeably here. apple, netflix -- you see all the declines today this is leading to the old debate about value versus growth value has been a laggard for so many years just at the end of last week, we saw the russell 1,000 value outperforming. so value is banks, energy, retail, by and large russell 1,000 growth is largely dominated by technology names. we've been waiting for a long time for value to assert itself a little bit last week was the first ti

that is something to keep in mind for caterpillar. as you can tell the stock for today is doing very well on the second-quarter earnings beat. so a lot of dow components reporting this week. caterpillar one of them. we talked about. watch for pfizer, png, apple. and dow. reason i'm focused on apple, we have kind of a tech hangover. amazon had a amazing quarter. connell, you talked about in reference to the nasdaq are still feeling this after effect from facebook's disappointing earnings. intel earnings in line with expectations but saying they will have some chip delays. that stock still being hurt. twitter talking about the monthly active users, that growth numb much lower than wall street expected. we'll see if we can break a little bit of the tech curse. a report card where we stand so far, of the s&p 500 companies that reported, 82% exceeded expectations for earnings. flip ahead, almost impressive number for sales. of the companies that reported, a little more than 72%, exceeded expectations as far as sales goes. if you look how s

caterpillar recorded a record quarter. the dow easily topped analyst estimates and raised its outlooks for a yearng stachinery sales allowed that company to recover any increase in costs. the stock was volatile early in the session, to close lower by 2%. dominick chu has more on caterpillar's quarter. >> the company benefited worlf ide. it's onee reasons why they made extra revenues than. expect >> they had the highest revenue growth. it looks like it's going to continue this quarter. >> caterpillar is seen as an indicator forhe global company. the company says it sees big strength in the u.s. construction marketse the u.s. and china. ich of the story has focused on theact of trade and tariffs, it estimates that materials costs were increase by around 100 to $200illion in the second half of the year, dueo recently imposed tariffs. >> w on the issue of trade urge government leaders to take actions to remove uncertainty about as a globa manufacturer, caterpillar has long advocated for free trade, because it enhances global c

there are some challenges ahead of caterpillar especially if you look at the higher tariffs on steel and. that in q creases costs quite a bit caterpillar just here on a monday announced that cost because of the terrorists this year might go up by as much as two hundred to million dollars they're quite confident that they can come up was that it was increasing prices and then olds all the overall environment is not bad for cater pillow we saw material prices go up there also a big producer off equipment machinery for or the mining industry and as you mentioned they hired there for cost for this year but wall street seems to be a bit skeptical and the stock actually traded to the downside by almost two percent talking about those tensions with tyson the biggest meat produce in the u.s. issuing a profit warning to the ratcheting up of those trade tensions i mean tell us more about that. in the broader agricultural industry usually is one of the few industries here in the u.s. where you see a trade surplus meaning that those companies of the sector or export more than it imports but now

caterpillar will show the strength of the system. it is a big week for banks , the r.b.i., the bank of england, bank of japan. this is daybreak australia, we are two hours away from the first major market open. ramy: i am ramy inocencio. over the next hour we will look at all the action last week on wall street playing into the asia-pacific trading day. you remember on friday we did get the blowout number for second-quarter u.s. gdp, but that was not what was propelling the markets down. the s&p 500 down .7%, the worst in three weeks. it was earnings. you can thank twitter for friday, the share price just tanking because it missed in terms of the subscriber count, down one million. the nasdaq down 1.5%. there could be some respite for this because looking ahead, apple does report and there is a lot of hope that its market cap might push the one trillion market, which would be the first time ever any company would do that. haidi: much-needed support for the tech sector. bank of america merrill lynch said it stopped buying coal stocks

but caterpillar still raising their outlook the rest of the year.right? does this show that u.s. companies can actually withstand some of this trade tension right now? i'm bringing in fbn's host of making money and fox news contributor, jessica tarlov. good to see you. >> thanks. >> trish: what do you think? >> when i saw the caterpillar report, not only did they blow away what wall street was going to do. they raised their production. they i'm employeded an extra 10,000 people around the world, including 4, 400 in this country. their profit margins were less than 8% and now on their way to 17%. you have a company in the eye of the storm. they sell a lot of equipment to china. the business held up well. they had enough confidence to raise prices. here's the thing. a certain amount of pain with everything. but we were reminded between a gdp number friday and caterpillar's earnings that this is the time to fight the fight you do it now. >> trish: i'm glad you said it. i lock at this and i get three little kids. i want to make sure that my kids, your k

in its business with china as well as increasing oil and shale gas production in north america caterpillar has been expected to use revenues because of the u.s. china trade to speech. so it's total financial correspondent yen score to own a wall street yes cassava seeming to shake off any of those trade tensions with china tom we expect this to last there are some challenges ahead of caterpillar especially if you look at the higher tariffs on steel and. that in q greece's costs quite a bit to cater piller just here on a monday announced that cost because of the terrorists this year might go up by as much as two hundred two million dollars they're quite confident that they can come up was that it was increasing prices and then olds all the overall environment is not bad for cater pillow we saw material prices go up they're also a big producer of equipment machinery fraud the mining industry and as you mentioned they hired their forecast for this year but wall street seems to be a bit skeptical and the stock actually traded to the downside by almost two percent talking about those tensions w

equipment maker caterpillar says it's up its full year forecast after reporting record second—quartern important one for us to watch because caterpillar's results can shed light on how us trade tariffs are affecting american companies. earlier this month, the company, which makes construction and earth—moving equipment, increased its prices to offset rising material costs. growth in china's manufacturing sector cooled for the second month in a row injuly. chinese officials say the official purchasing managers' index fell more than 51.2% in july. that's down from 51.5% injune. economic data from china is being closely watched because of the trade tensions between china and the us. so let's look at financial markets 110w. so let's look at financial markets now. the bank ofjapan is saying is going to keep rates very low at the moment and monetary policy flexible. isaid moment and monetary policy flexible. i said the bank of england tomorrow at the beginning of this programme, i meant actually thursday of course. that is the bank of england meeting on thursday. some of the rail services i

caterpillar had record profits, increased guidance.ure how the conference call is going, but tremendous results for them in this quarter. bring up the tech names because this is the story coming out of last week. can the oh all market survived with big tech getting hammered? you see netflix down 5% at this moment. >>> right now want to bring in, stay on the markets, talk about apa pell, tesla, they will report their earnings this week -- apple. market watcher keith fitz-gerald. what you have to say about both these stocks? audience should know you went three for three last week. we'll roll tape. >> start with google, you would buy it before we know what earnings are? >> sure, because i think the guidance given the trend at hand will be good, it will be powerful. >> tell me about amazon. you would also buy that in advance of their official earnings? >> that's correct. i think the president's tweets are a distraction. i think the ceo's are where we want to concentrate, not the politics as we always talk about and i think team bezos will

caterpillar is saying $200 in additional spending. so event today as well, though they are still doing well both on the top line and bottom goin there is concern going forward. -- going forward. waste: it has been a tiny management company. romaine: the name is avalon holdings. if you have been on finance order, it has been all of the talk. this stock was trading at two dollars per share and how to market cap of less than $10 million, and last week, it mysteriously began rising and we got a filing late friday. a company called mint broecker international took a 60% stake in the companies shares. the company responded to this late on monday and basically said it has no idea who the investor is and that nothing material has changed about the companies business that would warrant this type of share move. the shares. at $20 per share on friday and they are back down to six dollars today. though, triple where they were before all of this happened. there is no real comment on what the value of this company should certainly made for entertai

although with the price to earnings ratio of 38, caterpillar looks a little pricey.upon may be the place to go as the daily deals web site looks to sell itself. alibaba and iac are rumored to be possible bidders here. groupon's jumping 8.75% as investors like seeing a forsale sign out there. it is the most actively traded stock today. less than five hours before president trump reveals his second supreme court justice nominee during his term. of course, neil gorsuch successfully navigated the shark-infested d.c. waters, but who will be next? cato supreme court review editor-in-chief chumming the legal seas for candidates and how they may vote on the biggest business cases facing the court. we'll get that to you when we come right back. ♪ ♪ (♪) i'm a four-year-old ring bearer with a bad habit of swallowing stuff. still won't eat my broccoli, though. and if you don't have the right overage, you could be paying for that pricey love band yourself. so get an allstate agent, and be better protected from mayhem. like me. can a ring bearer get a snack around here? copd makes

need to look at caterpillar. trading higher after reporting stellar earnings and raising its forecast outlook and this was the stock that was supposed to be totally hammered in the wake of the chinese trade tensions. right now caterpillar is flat and trading volume 10.6 million shares but this is helping to ease investor fears about the impact of the global trade war on the industrial giant. however, the ceo said on the, while the quote, we urge government leaders to take action to remove uncertainty with regards to trade. we will see if government leaders read president trump and president she's caterpillar's advice. let's get to that national gases. president trump is part of his discussion in front of the press with the prime minister of italy really got into discussing what is going on with the natural gas and we knew last week that part of the breakthrough that came with the european union would agree upon more natural gas here in the us and that would be liquefied natural gas. president trump doubling down

we had earnings from caterpillar with $200 million tariff related headwind. tyson foods blaming the trade dispute. ramifications across several sectors we are seeing. it is also in part because of the tit-for-tat quality of this. all of a sudden you find u.s. agriculture in the firing line. bmw finds itself in the crosshairs not simply because it , but a lot of fancy cars also it's the largest american car exporter to china and it finds itself caught up in those interconnections. this is before we even start talking about places where you can find a major merger between the european-american chip producer foiled by refusal of chinese regulators to give the green light. we've seen a shaking of the fundamental assumptions about what the future looks like and where we are headed. the consequences of that in markets we see. we see the prices of autostart gyrating. there is very serious uncertainty in which market active lab to hedge against. see the shaking of the market in terms of auto sectors, we sought gangbusters in terms of u.s. economic growth. when i'm lo

. >> earnings from dow component caterpillar later this week. u.s. stock market futures right now. slightly lower this monday morning. dow futures 10 dow futures down to 11th in the s&p down by two and a quarter, nasdaq down by five and a quarter. >> stocks open lower on the back of the selloff in u.s. technology stocks to hit these markets on friday. the ftse can the cac and dax all in the red. >> stocks in japan the biggest loser down almost three quarters of a percent. tree into tom cruise showed this possible to take the top spot at the box office. "fbn:am" starts right now. tracee: 5:01 a.m. in new york on monday, july 30th. tracee carrasco for lauren simonetti. cheryl: i'm cheryl casone. a busy monday ticket two. markets a little rough last week. i know you've been watching those numbers. we've got a lot of got a lot of breaking news to get to this morning. first the top story. cbs board will meet today to consider whether the ceo should step aside for sexual harassment allegations are investigated. the company has opened its own investigation after 67 accused him of miscondu

we heard from caterpillar.ring from, we have pfizer, procter and pro& gamble, apple, dow and du and d. the senior editor noted that to add 37 dow points this morning, also the company says the imposed tariffs are expected to impact materially in the cost of $200 million in the second half, so we'll watch for that to add up. so still talking about tariffs ultimately. we get to apple, we're waiting for 52.3 on apple. overall the stocks, facebook, i'll leave twitter out for a moment, goldman sachs basically made the note and the big outsized appetite for this particular group, facebook, netflix, he was saying the negative has been masked by the outside appetite. in the past, sharp declines have signaled below average one, three, six month returns. so that is for the s&p 500 as well as the larger than average downturn, so what's interesting is that this group may not be as hot. the other thing that i've been hearing, the other theme i've been hearing is the disconnect between the facebooks, the twitter and the netf

earlier this month, caterpillar raised prices to offset the rising cost of materials.and many more we have not fit in the programme on the business live website. but we will talk about samsung. it has issued its latest figures. samsung electronics has reported a 0.1% dip in profit for the second year, compared to the year before. it's blamed that on slowing sales of high end smartphones which dented demand for its flagship galaxy devices. but the chip unit keeps thanks's head above water. katie silver is in singapore. a real mixed bag when you delve into the numbers about what it tells us about samsung's business, and eve ryo ne about samsung's business, and everyone is looking at the smartphone bit of it? yes. it is the pa rt smartphone bit of it? yes. it is the part of the business doing particularly badly. we saw a 34% drop in that part of the business. they had the slowest quarterly profit growth and almost two years, it was still up about 5.7% with a growth of $13 billion, but the smartphones were down across the board. the iphone overtook the galaxy, that is a pa

goldman sachs removing caterpillar and deere from their conviction buy list saying they underestimated the risk of trade war tensions cat worries about weaker costs, trade war implication. >> i don't worry as much about cat as i do deere. i think the deere call makes more sense to me anything ag has been killed this year i own dow dupont, and that's been miserable i think cat is worth a look here it's down 12%. it trades at about 13 times forward estimates. almost yields 3% you are just beginning to see oil and mining capex numbers go higher this company has done an amazing job restructuring, and the new ceo is focused on profitability. i think there's upside to margins. and in terms of raw costs and pressures there, they have pricing power. i think they can manage through this don't forget these guys, they beat by a lot last quarter they raised guidance by $2 for the full year, and the stock went down because of trade and peak cycle i think there's longevity in the cycle. >> it's interesting both stocks are higher on this move. year-to-date both are down 13% cat in the near-term is do

caterpillar coming up on monday. steph, you're focused on it maybe more than any others why?it and it's been horrible. 17% since last quarter their commentary is the most important and whether or not they are still seeing it or still think the last quarter was the pique. i don't see it in all the checks that i see and the end market demand i'm hearing, so i still like it. the it's attractive. low expectation, but it is right in the cross hairs of trade. so if you think the trade is is going to continue, the stock is not going to work. i think the balance sheet is strong and i think they're going to do something with that. with the new u cfo and as i said, i think the business fundamentals are very good >> another take on cat anyone want the other side of that trade >> meow, scott, no one's interesteded >> i like that that no one is interested. i like that. look what happened with twitter. everybody loved it it's down 20%. going to have to buy low >> feels weird that apple is almost an afterthought there's no way of going into the, no new anything coming into the print. which

and then find one for now, now, here's caterpillar this is caterpillar from the 2015, 2016 low and a move, the stock from the right shoulder up about 145% and the key is it moves from the neck line. let's look at another one on a five year chart. they're all a little different but the same principle in this case, up about 270%, and all the good eating starts from the neck line. all right. on the way down, head and shoulders top. just this year, a big asset manager. you can see the formation, you can see the neck line. and you can see the plunge just in the past 2-3 months down 25%. the point is, it doesn't matter what the business is this is truck engines, this has nothing to do with an asset management business, the key is the same you see the neck line, you see the top, and you see the big plunge over the past 4 or 5 months we know we have this beautiful trend line we are hovering on city bank right at the neck line the risk it, it completes the topping formation. head and shoulders, bottoms and tops are very real. >> at what point do you really identify the right shoulder? >> a lo

dow component, caterpillar doc just talk ed about it.down 9% getting a boston today our call of the day. the blitz, lumber liquidators. chipoltle and charter, we'll do it next. michelle has a look at what's coming up. >> 18 minutes. thank you, scott coming up, one trillion dollars worth of advice. the chief investment officer at goldman sachs tells us where he's putting money to work plus, was cbs right in not putting the keon leave or is the board acting irresponsibly what does it all mean? and an exclusive look at the billion dollar property up for sale in l.a. it's an entire mountain. that and much more when "power lunch" starts now in less than 18 minutes don't move, the halftime report is back right after this break >>> shares of caterpillar down 5% now barclays is moouing to the sidelines. the firm downgrades the stock today to equal weight saying growth is appreciated. it's our call of the day all right. give me something on this. what is this about this story is all china, china, china. >> of course it is look at the industrials.

we've had the industrial, caterpillar 3measuri, you go ac the board. i think that's healthy for the market as well.ncredible b i can't believe in amazon, netflix and microsoft have accounted for 70% of, 70% of the s&p's gains this year that's absurd. that's unbelievable. >> incredible. >> and if you don't own them in a big way, you're reminded of it every day because you're going to lag every day so yes, to your point, technology has been the leader i am watching the rotation to pete's point i think for us to get to new highs, i actually do think we need these other sectors to p participa participate. look how strong the markets were yesterday. >> you get to new highs without the financials at least picking up the weight the tech is is such a big part of the s&p now does it really matter? >> i think if you have technology and financials and energy and industrials, you can see new highs. without a question those are the four biggest sectors in the market any way. i don't think you want utilities and staples to lead. >> you get the russell, leads in the

equity fund for investment caterpillar is our stock opening hour.ut the stock is still rising up over one percentage point. barclays, the analysts saying price increases may pressure profit margins. the actually reported earnings yesterday that us with the analyst is referring to. here, a solid raise benefiting from a broader recovery but investors still seem to be working out how to play caterpillar's earnings are the stocks up and down over the past 48 hours and some concerns .egarding trade they said the tariffs could cost between $109 and $200 million. that is how they would have to raise prices. >> really nothing in caterpillar's earnings per se, just the fear that something could change in the not so distant future. >> absolutely. we see from other analysts including goldman, the longevity of the cycle, he said the earnings selloff yesterday, it is now a story for caterpillar. is making,terpillar a quarter selloff, when he got on the earnings and said the prophet could then be a high water mark your the second quarter probably showing that the

in terms of the dow leaders, caterpillar, j pr morgan, caterpillar, and -- twitter shares following onts that it's cracking down on fake accounts the cfo tweeting moments ago about the story, which has helped the stock recover some of its losses saying that the monthly active user number isn't affected by the fake accounts being removed, and that's why you see the stock ticking higher right now. >> there was a recommendation based on that that they're expecting fewer active users and so down go the earnings. i digress because we want to turn to golf right now the oldest trophy in sports -- let me repeat that the oldest trophy in sport is the claret jug we're getting a firsthand look at it right now. they tee off a week from thursday at a fabled course. we'll talk about that in a moment we are thrilled to have mike tarico in the house. host with nbc sports he'll be leading coverage for the open for nbc and the golf channel. >> this is a highlight for me. >> mutual admiration for all of us >> this is -- i live in michigan, and you guys are on in my office during the day, so this is a tre

companies where we do see some pressure of the car industry for example or other multinationals like caterpillar boeing where we do see stock prices falling a bit but overall the market is still taking it easy we just finished the third consecutive week where blue chips actually saw gains even if the market was tiny little bit under pressure on friday but overall the market really takes it to rather cool who at this point and so china com simply impose counter-terrorist as they done in the pasta because they just don't import enough u.s. goods to match what the u.s. is doing so how could trying to respond. and certainly if we look at the figures the u.s. exports goods to china in the amount of a good one hundred thirty billion dollars and they import goods from china in the amount of a good five hundred billion dollars so on this side the u.s. seems to be here in the driver's seat but china certainly has possibilities to counter one for example would be if china just devaluates its currency if the yuan is going to fall further and actually it already dropped to the lowest in about two years so t

let's start with caterpillar everybody knows it after being a phenomenal winner, cat hit a that no earth mover could possibly budge incredibly, the company reported a a total blowout. quarter, then proceeded to throw cold water on the rest of the year with comments about how the great quarter may be the high watermark for earnings at the time it seemed like cat was talking about margins coming down but since then, the trade war has taken on a life of its own and that's made people so scared, so afraid that they sell, sell, sell. >> sell, sell, sell! >> on every opportunity. now the finest industrial in america has a stock that's off 10% for the year, down 32 points from its high because of concerns that it may be cut off from its best growth market, which is china the thing, caterpillar is still doing very, very well. and today people seemed to remember that. even with the stock gaining more than five bucks, i still think it's too cheap to ignore that said, we're about coming up with new ideas on "mad money," and i actually prefer united rentals, with a stock that's also down 10%, but un

first it becomes obvious you sell caterpillar and boeing. i'm shocked, shocked that they're still gambling with these two stocks i'm studying these companies closely. i know china needs boeing more than boeing needs china. the demand for place is just that in fact, i'm more worried about the continuing deterioration in revenue for the u.s. based airlines. american shaded down figures again today. in part because of sharply higher fuel costs, but also because of too much supply and not enough demand. that will get you every time caterpillar is about construction which means it is about china. but here is something no one seems to consider when they sell it down 4 bucks when the trade war heats up and buy it back up when the coals grow cold, asia only represents about 20% of cat sales. sure, that's enough to cut into the numbers. i know cat has plenty of competitors anxious to take its market share but the usual suspect's line that shouldn't be jailed so quickly. if you think that we have a much stronger hand than dealing with china than the m

those trade fears are hurting stocks boeing, caterpillar, 3m and apple. china-exposed companies are leading us lower tyler? >>> thank you very much, contessa oil tanking today and closing prices now we'll go to jackie deangelis and not a second later for the commodity desk update. >> crude prices are dropping today along with stocks on the trade fears. two issues here, first, demand could be impacted. and second, china could impose duties on crude imports. so it's a reasonable threat people are considering and you can tell that the downside sentiment is down today with more than a 12-million barrel draw-down in crude inventories. that's a significant number that should have supported prices more or even turn them positive. obviously it didn't. oil dropping 5% today. the worst day in more than a year session lows are $70.02. that's a test of the critical level. speaking from a technical standpoint, it's a sign it will violate it guys. >>> thank you, jackie. economists sounding the warning signal about the next round of tariffs threatened by the trump admin

the general stock market itself in the us we're already seeing companies like general electric to caterpillar and so. the others. wells fargo in financial stress that there are signs of financial fragility as i call it where francia for gelati is really a condition where the cash flow to finance previous debt becomes insufficient and they can't roll over the debt and they can't borrow that debt so then they have to default or sell off some of their assets first or better assets and then they did they default if after the can't sell off those assets well that financial fragility in my book systemic fragility in the global economy is an indicator of pending financial instability and i think we're approaching that and we may see that emerge in the next year or two. ok let's talk more specifically now about twitter which has just lost a million users have to purging fake account cia a cohen internet lore expert and social media and if he joins me on the line do you think twitter is per g.'s really are we doing out fake accounts could they potentially be used as a pretext to suppress certain kinds

we're already seeing companies like general electric and caterpillar and some of the others. wells fargo in financial stress that there are signs of financial fragility as i call it where francia fragility is really a condition where the cash flow to finance previous debt becomes insufficient and they can't roll over the debt and they can't borrow that debt so then they have to default or sell off some of their assets first their better assets and then they did they default that after they can sell off those assets well that financial fragility in my book systemic ruggieri in the global economy is an indicator of pending financial instability and i think we're approaching that and we may see that emerge in the next year or two. u.s. lawmakers and the american civil liberties union of raising the alarm over amazon's facial recognition tool this is after it falsely matched photographs of members of congress with criminals there are no calls for a ban on its use by law enforcement and identification with that accurate or not could cost people their freedom or even their lives co

in other news, caterpillar says it has bumped up the full year forecast after reporting record second—quarterit is important to watch. these results can shed light on how a us trade ta riffs can shed light on how a us trade tariffs are affecting american companies. earlier, the company which makes construction and earthmoving equipment, increased its prices to offset rising materials costs. samsung has posted a 5.7% rise in the earning report led by sales of semiconductors which helped the south korean giant defy sluggish growth in the smart phone market. operating profit for the biggest maker of memory chips and smartphones was almost $13 and a half billion. mount everest, of course, the world's tallest mountain, notorious for its harsh climbing conditions and treacherous weather. climbing to the top can cost as much as $100,000 and you need significant technical mountaineering experience and fitness, but for those unable to climb, they can track to the base camp, which is becoming increasingly popular. in this week's experience, we look at how tourism is changing the economy in mountain vil

rise rise dow jones on six six weeks with our our expendable and had a caterpillar. up three three and 2% respectively taken to have last october to break every. day using street vested as its alleged* is result was only three just under under nine time anything about trying to crososs loss in the tech sector major major he's into clothes out of here on on the on the on the one hundred hundred leading thing about success have. some of those. during. let's let ex an extended remarks from a major gingin new official says junichi. the present sent down toilets lightly first for ordered border for some reason is again hot coffee to reaches for exaggeratedly deal. form jon jontron tara. five three three china [inaudible] right. and he said he said he might might central.. partnership for signs earlier earlier by eleven let huntress trees aftfter donald donald trump for food state state. listen. it's not adding that he was all done it day key we have now calculate out that i'm a fine mind you. eleven los los. you use mine mine. might not expectations [inaudible] another mo

you want to talk about it now. >> right caterpillar goes up. mean, this is too granular but goes down. it was down $5 then $4 and finishes down. and at the end of the day, it continued growth but already appreciated the steepest let me give you my feeling on caterpillar. the analysts are now watching how stock acts and when it doesn't act well, they say it's not going to get valued up. so turn your position. that's a new theme that has just developed for 2018 which is it ain't moving it's because of tariff, trade, because of the different cross turns. it's time to go. and that is something we have not seen this whole year which is basically i can summarize as its down. >> right. >> basing their calls on price actions as opposed to fundamentals. >> right they raised numbers. the demand is really strong everywhere but people are saying, hey, it's late in the game they're trying to anticipate micron at 60.62. do youknow micron sells at fou and a half times. >> i didn't know that. >> you can make the market cap because they're buying back a huge am

if you remember caterpillar day, everyone was saying, we've reached the high water mark. we couldn't possibly match that in q2. now in q2 expectations are 20%, pretty much where we were in q1. the eps numbers are not dipping. >> no. we have a much higher rate and if we get 20% the market will want more than that to go up, but i think we've also had really good economic growth. corporate earnings over the long time tend to track no gdp growth per share. we have the u.s. growing at 3% per year, we have tax cuts, coming back into the u.s. from repatriation i think that's a pretty good environment. >> what if you're wrong? what if growth runs out of steam. they'll debate that global growth will start growing on momentum do you hedge against that? >> i think having a good, diversified portfolio is a good way to handle it you have to be certain about timing with those types of things i think in the u.s. the biggest risks are over heating from inflation and most recessions tend to happen from the fed over tightening that's something we watch closely. the yield curve flattening i

. >> you can call caterpillar a value stock. i think it trades like a growth stock. a 19 pe oon highly selected company is great >> it's 19 >> 11.5. >> forward meaning this year. >> remains to be seen. >> i think july 30th, i feel comfort b bable that not going to fall out of bed if china goes worse, it could. if i could try to summarize this >> can i steal it quickly? >> because look you're going get value taking over from growth it has to be because people are paying attention to price. if they get burned bay 20% down day and you don't see it bouncing back, that's when people are going to say hey, i'm going pay attention to the price apaid r earnings >> one of our own stock pickers are making an interests move a and d a shares havehave soared hey, josh. >> let me help out jim and steve. value versus growth is basically the yield curve if it widens between twos and tens, you'll see value stocks outperform. here's the stock that really has had 15 starts, virtually every breakout now you've got breakout. you have to go back to to 20 120 find a time where it was able t

general stock market itself and you know as we're already seeing companies like general electric to caterpillar and some. the others. wells fargo in financial stress that there are signs of financial fragility as i call it where fragile fragility is really a condition where the cash flow to finance previous debt there becomes insufficient and they can't roll over the debt and they can't borrow the dead so then they have to default or sell off some of their assets first or better assets and then they did they default that after the can sell off those assets well that financial fragility in my book systemically jilin the global economy is an indicator of pending financial instability and i think we're approaching that and we may see there emerge in the next year or two. u.s. lawmakers and the american civil liberties union of raising the alarm of amazon's facial recognition tool after it falsely matched photos of members of congress with criminals they're now calls for a ban on its use by law enforcement and identification with accurate or not could cost people their freedom or even their lives c

caterpillar is typically a market mover. tuesday will be a big market day. then earnings from am and pfizer. wed date latest data is for the adp employment report. auto sales are out as well. and tesla, sprint and the carlisle group. turning to earnings we have cvs, and kellogg reporting earning. tune in to "mornings with maria" at eight:00 a.m. eastern when we identify where the jobs are today. i hope you will join us. we'll talk private equity investing today. my exclusive interview on "mornings with maria" with vice president mike pence. the president tweeted with the federal reserve. if the economy is so great where not raise -- why not raise interest rates? >> we respect the federal reserve. but what we don't want to see happen goin going forward. we don't want policies that diminish the tremendous energy we have in this economy today. maria: you can see my exclusive interview with the vice president monday at 6:00 a.m. thanks for >> i'm bob massi. for 35 years, i've been practicing law and living in las vegas, ground zero for the american real-estate c

we're already seeing companies like general electric to caterpillar and some. the others. wells fargo in financial stress that there are signs of financial fragility as i call it where friends of fragility is really a condition where the cash flow to finance previous debt becomes insufficient and they can't roll over the debt and they can borrow that debt sold then they have to default or sell off some of their assets first their better assets and then they did they default that after the can sell off those assets well that financial fragility in my book systemically jilin the global economy is an indicator of pending financial instability and i think we're approaching that and we may see that emerge in the next year or two u.s. lawmakers and the american civil liberties union are raising the alarm over amazon's facial recognition tool now this is after it falsely matched photos of members of congress with criminals and there are now calls for a ban on its use by law enforcement and identification with that accurate or not could cost people their freedom or even their live

boeing down, caterpillar down.he stocks that sell off in trade jitters but also bounce back. so would you go out and buy caterpillar and/or boeing today? >> i think i'd wait a few days, stuart. i'd like to see what comes out in terms of the list specifically on the $200 billion tariffs from the u.s., and i'd like to see what china does in retaliation. at that point, i think there could be more fear in the markets, and you may be able to scoop some of the stocks that are most impacted at better prices. stuart: by the way, the tariffs would not be imposed until september. we've not yet heard from china about any kind of retaliation at this point. another one for you, christian. morgan stanley just downgraded big tech because they think there may be a sell-off coming in those big tech stocks. would you make the comment? would you say that the rally in big tech is now over? >> i would not, stuart. i think the rally in big tech is going to continue here. we're going into an earnings season that will be very strong, tech

ramy: the upside, caterpillar, people are optimistic, bullish but people are saying not so fast. >> a year ago they talked about the high water mark. this year they posted 297, the high water mark moved up and you saw the stock rallied at the open but faded as we got in later to the day, that was primarily the cost of the tariffs. they were saying $100 billion to $200 billion primarily tied to rising steel prices and that basically took the wind not only out of caterpillar but a lot of their competitors as well. still a lot of concern here about how the tariffs are going to affect these companies. haidi: over the past few days it sounds glamorous, a tiny waste management company, what's going on in terms of its runup, has the company said anything about it? >> avalon holding has take then internet by storm. this company had less than a $10 million market cap a week ago. then started mysteriously rising, topping out at over $20 a share after averaging about $2 a share over the past year. basically, a company in the bahamas named mint broker took a $1.92 million share stake, that's abou

something could adverse hi hit like boeing and caterpillar. not today. all on the belief here that we'll weather this storm nicely and europe is in total disarray. the british government is in a world of trouble. boris johnson resigned today and another key member also stepping down. that least theresa may in a world of hurt here. in germany, signs that angela merkel is beginning to blink in the face of potential tariffs saying there's a way to safe some of the american demands. the french say they're not growing to cave. and the read from gary calpon and charles payne from fox business network. is -- what sit here? >> the fundamentals are it. we saw this great jobs reports friday. first six months, the big rigs, semis. they're report numbers. bases have never made these investments. they believe this economy is going to keep going and they're investing for it. by the way, i also believe it's not that wall street doesn't think we're in a trade war that it won't get too deep. i think we're winning it is the notion despite the atlantic, that will probably

caterpillar, one of the lampest -- large est exporters, down 2.7%.dmittedly off different factors, off 3.4%. wherever you look at the moment you are seeing the damage that is being done. remember the important thing about a trade war. the gains are very limited. they are those industries that benefit. the losses are widespread and diversified throughout the wider economy. we'll talk about that on cnn markets now live which comes from the stock exchange, cnnmoney.com. >> the gains limited, the pains widespread and hitting everyone. richard, great to see you. >>> congressman jim jordan defending himself against allegations that he ignored sexual abuse as a coach at ohio state. what he is saying now -- next. ♪ you shouldn't be rushed into booking a hotel. with expedia's add-on advantage, booking a flight unlocks discounts on select hotels until the day you leave for your trip. add-on advantage. only when you book with expedia. >>> a congressman facing tough questions, a congressman not backing down. ohio congressman jim jordan defending himself once aga