caterpillar shares rose more than 1.5% to 140.59.clays telling clients to buy shares of walmart. the analyst started coverage of the stock with an overweight. rati the firm predicts that walmart's sales growth will rmoutperts peers. the price tart't $110. walm shares rose. 1% to $96. ubs lowering its price target on general electric now to 13 a share. the analyst cites pricing pressures and share losses in the power market. e firm maintains its neutral rating ohathe stock. to fell a fractio $12.56. >>> anthem upgraded to overweight from equal weight at morgan stanl. the analy says merger activity in the sector and drug pricing reform could result in accelerated profit growth. the price target now $368. anthem shares rosee man 1% to5. 267 still ahead, a german automaker's big, surprising bet. >> in the midst of president trump's trade dispute, mercedes benz is expanlang an auto in south carolina. i'm phil lebeau outside of charleston. that story coming up on "nightly business report." ♪ ♪ >>> trade tensions between the u.s. and europe

caterpill caterpillar, amex. banks are up, hard to have a down market if the banks are going to wake up. >> we've talked about the industrials over the last week or so we talked about the healthy rotation, we've seen a lot of technology selling off of particularly yesterday we were talking about the f.a.n.g., when you see other areas starting to take the leadership roles, we've seen bowing and caterpillar, we've seen 3m moving to the upside throw in the financials and suddenly everybody loves the banks when they start to get to those levels once again. it hasn't been about the velocity of the move that they've been fearful of in the past it's been a nice steady move out of the ten-year. >> jp morgan has been pushing on a 52-week high cat pillary outperform at baird, nike, got a price target raise what trade skirmish war, whatever, market doesn't care about any of it. >> it's a perfect solution they came up with let's put 10%, put 10% in 200 billion. tick them out of the ballpark in terms of what they can retaliat

helping out caterpillar. caterpillar gaining on the tariffs being less bad than predicted. we had an upgrade on a risk reward ticking shares to an outperform saying evaluation was attractive considering the input costs are peaking. top stocks, interesting. simply a big point boost. will the gains continue for caterpillar? this is the relative valuation within the bloomberg that suggests perhaps it is possible. we see we have caterpillar trading at a discount. of the historic range suggesting shares could have more room to run after a strong week. the strongest week since november 2016. stocksgene editing became all of the rage, they are taking a hit today. crisper therapeutics is the pioneer. they are down 9%. down 15% -- the technology is called crisper. they have been on a tear. they have not sold a single dose . raymond james came out with a note initiating coverage saying that it was overdone. specifically citing disappointing progress on a sickle cell treatment and said that recent disappointing trial , aa for a separate company slightly different technology, appointed

the mark has said we accept it and now are moving higher. >> the point about caterpillar, when you're looking at that, it's up 2.5% today if there were the fear, you mentioned currency, when you look at what's going on in caterpillar, the reverse of when people were aggressively talking about the tariffs and what they would mean now it's like, water off a duck's back. >> we're going to age ourselves. ever play mike tyson's punch out? >> no. >> i do wonder, this is a market that has dealt with the body blow of tariffs. you've had the gut punch, if you will, of the currency move and now a higher funding cost. interest rates are going up. you're not going to be able to refund and refi the way you used to be. it feels like the market, anastasia, has taken a bunch of hits at what point does it wobble >> if you look at the fundamental backdrop >> for how long? >> the foreseeable future. think about the s&p 500. it's not like rising costs today will reset everybody's interest rate expenses. back to the trade conversation this is not about $60 billion, it's $500 billion goods under tariffs. i

higher bys lifted train sensitive stocks like caterpillar. by banking shares. we saw the 10 year yield soared past 3%. take a look at what oil is doing because we saw oil jump past $71 a barrel. it has been rising for the past three sessions. oil prices. let's see how all of this is being felt in asia. sophie: we are getting ready for a mixed session. japanese stocks could be at a three month high. tight the race might be. an interesting week for korean investors. this as they wrap up the visit which kim jong-un pledged to move towards denuclearization. take a look at what is going on in new zealand. looking to snap a five day event. the kiwi dollar gaining ground jumping about that u.s. handle greenback after the better-than-expected gdp that we got to the second quarter. up.s indian markets are closed this thursday. in hong kong, we will be welcoming the latest trading debut. so much for you that. a lot to look out for. let's get to first word news. presidentcommission says the u.k. is still far from a brexit deal. irish prime minister added to the negative t

do you like caterpillar? >> and i answered both parts of the question >> you're making it much more difficult than it needs to be. >> you're making it -- >> josh. >> i want to hear more of this >> you're the one who is making it more difficult. >> i want to know why he took a shot at soccer moms. >> all right josh laura in las vegas what isa good price to jump in on workday >> i don't like it so -- but if you have to, it's about 10% above a rising 200 day. last time it hit that 200 day was in july or late june served as flawless support about 128, 129 if you need to own it, maybe look to see if it tests at that level successfully personally, i prefer service now. >> all right steve weise. david in fort lauderdale i'm getting slaughtered in alibaba. how do i play that trade with tariffs looming? >> look, i've been tempted to get back into alibaba. tariffs don't really fit alibaba all that much. most of their business is in china. trying to expand to the u.s. >> haven't a lot of those chinese stocks gone down a

caterpillar, lockheed martin bowing leading the way our next guest says there is three to buy right now >> how you doing first let's look at the xli, the sector s p. d. r tracking the industrials. you can see from a technical point of view since 2011 we are in a beautiful parallel chnl, no reason to fight the trend at this point more over where will we run into technical resistance we have more upside to go? we are range bound inside of the little channel here. so neither overbought or sold. within the maup of xli there are three industry groups to look at, the are railroads, defense and industrial conglomerates the mention here the conglomerates are weak, g.e. and 3 mment. as i mentioned defendants strong, bowe something in a beautiful signed of sideways pennant here caught between a ceiling and floor process. at some point the trend in place prior should break out boeing. i think boeing will follow suit with rating on next is lockheed martin. not as strong as boeing and rating on. you have a low a higher low shorts are caught. panic buying, starting to get on the horse. buyers coming

and this is a three-month relative high for the industrials versus the s&p and this is made by caterpillar and deere ultimately getting better here's deere, de 30% correction this year i thought very important bottom back mere on august 17th on three times average daily volume the stock is on the verge of breaking out and we get it above 148 and it bodes well for industrials and it bodes well for the market and the em stress is not spreading >> chris, come on over >> wait a second >> did he poll the team? >> no. so does this mean that there is a rotation going on or rotations that you would recommend i mean, if we're going to value industrials, we're going to value banks and to say technology >> i think it may be, but these are sectors both industrials and banks that have quietly been improving all summer if you look at the responses that post earnings it was the sectors that worked best relative to anything else. bellwether stocks with deere and mmm and honeywell, the transports and we see the strength in the rails and we see the strength in the airlines and this is a sector that's gettin

the likes of boeing and caterpillar.r in and out of breaking through its 200 day average, gets a lot of technicians excited. financial issues doing quite well. before you get into the weeds, uncertainties with the market climbing. the president blasting democrats on this whole letter and treatment of judge kavanaugh. listen. >> what i don't like is that senator feinstein has this -- has this letter for a period of like three months from july, maybe even before that, but from july. why didn't senator feinstein bring this up at her meeting with judge kavanaugh? why didn't these democrats a? they knew about the letter. they were showing it to democrats. why did they wait until everything was finished and then bring it up? that doesn't look good. neil: all right. how does this all go now? i mean they're going to have this monday meeting that is a judiciary committee will hold a special hearing. but we're told without the accuser, christine blasey ford will not be there we're told. her lawyer wants an fbi investigation first

if you want to buy 50 shares of caterpillar, you don't pick them all up at once that is done never buyll at once. instead i should have been buying it in increments of 5,000 shares you buy it gradually over time trying to get the best price you could. you can put it on a strong position i know institution guys are saying, 50,000 is not, but you know what, i know longer trade in size, but i still invest and i invest in my travel trust and you can follow along over the course of multiple days, it makes sense when you buy at all once, you are declaring that the stock won't go lower buying gradually in stages is all about recognizing that our judgment is fallible why don't people do it my way? why not buy it in 100 share increments i think because they want to be big too. your broker wants to get the trade done my brokers hated it when i would place incremental orders it maybe it will go into free fall right after. you need to resist like you are making a statement i bought and sold billions of stock. how often the last price was the lowest and then off to the races? maybe one trade in 100

monthly retail sales have been phenomenal for caterpillar. it's moving faster in america than the rest of the world. the street, i think right now comfortable with the fed hiking two more times this year. wall street yawned. so keep watching the transportation index. that's for validation of the economic boom. brought in one of my best friends here, one of the smartest guys. market resolve. i love the way the market closed today. we could have been off 200 points easy. >> the headline today. you saw that slight hit that we got the report the president was going to move forward. this is typical of what he does. in the past, most of our leaders in past would look at the other side. when the rhetoric got soft you would look back the other way. resolve is high. americans today, they are excited about the economy. they are excited about their job and the prospects of a better job. it's a bright future. that's when you open your wallet and that translates to the bottom line. charles: the university of michigan said one third of the respondents did

we've got walgreens, boeing and caterpillar down. >> this week marks ten years since the financial crisis of twragt which was triggered by the fall of lehman brothers. andrew ross sorkin sat down with those who tried to save the back and its ceo dick fold only to see the last chance slip away in a new documentary slip away premiering tonight on cnbc. >> they collected us all and said the barclays deal had fallen through and we should all prepare for a lehman bankruptcy later in the day. >> you've got a group of ceos and leaders in government, and they all wanted to know why, what happened? and that was the place to start, but right away how do you switch on to saying where do we go next >> in many ways it alleviated us how to figure out could we take on those assets? no one said oh, [ bleep ] and no one said thank god they just said next play. >> for some people a sense of relief. >> at least in my case it was. >> there is no sense of relief for paulson. >> i remember stepping out of the room, calling my wife, just telling her, wendy, i'm afraid that this is something very bad. i don't kn

i am proud of caterpillar and comcast and caterpillar. can have an improving k-12 education system. balanceor has got to different priorities. ms. rivera: all right, let's move on. this is for you, mr. ducey. ms. rivera: mr. ducey, you often -- that arizona is open for business. what is the definition of "open for business"? gov. ducey: that's correct. arizona is open for business. had 300 countries that have expanded or relocated here. our unemployment rate was this low, people were renting at blockbuster. in arizona we have simplifies and improved our tax code. we have eliminated in limerick -- we have eliminated regulations. we have made it a better place to live. people vote with their feet. the fastest-growing states in the country. all of those companies and businesses are in nevada or texas. ms. rivera: mr. garcia, 30 seconds. mr. garcia: tucson is nearly at the bottom of all economic indicators are not growing at the rate the rest of the state is. let's put this in perspective. arizona is growing, but so is the rest of the country. of 2017, arizona and this is what we need t

shares of caterpillar boosted the dow, helping it outpace its peers.ot only headlines from china and the u.s. but the ongoing nafta talks. we heard from canada's foreign that the talks will continue on thursday. we also have the s&p 500 gaining 1/10 of 1%. banking shares lifting the s&p 500. we have the 10 year yield rising past 3%. that helping banks can the nasdaq finishing flat. let's see how this will be felt in asia. we are gearing up for a fairly busy day and asia whether it is politics or eco-data in japan. counting down to the ruling party election. the question is, by how much will he win and what would that mean for his policy priorities moving forward? holdingnikkei futures higher. it has been an interesting week for korea investors. this is us moon jae-in wraps up his visit to the north which kim jong-un -- kim jong-un legend -- pledged to do that. we do have aussie contracts looking flat ahead of the start of the session. have stocksnd, we and wellington opening lower by 1/10 of a percent after a five-day advance. this ahead of the latest

you're at session highs in part because of boeing and caterpillar.se proxies for trade having a pretty good session this morning. >>> now to energy. a new report says right now north dakota's producing as much oil as the entire country of venezuela. susan that is a heck of a statement. a a testment to our independence. susan: state of north dakota is making more oil than venezuela. we're looking 1.27 billion barrels a day in the month of july according to bloomberg. that is approximately the same level as venezuela and it is four times what they were producing at the peak of the previous peak back in the 1980s but if you couple north dakota with texas, north dakota only second to texas at this point, we're producing more energy than the saudi arabia according to eia. isn't that amazing. charles: those are great, great jobs. susan: decline of venezuela which has the most proven reserves in opec because of the political situation, they're just wasting their -- charles: they kicked out western expertise. you know, they cheated us on contracts and they d

are more sense i have to what's going on globally as well in the u.s you look at something like caterpillar. boeing names where do et revenues come from when you break it down i want more defect than people would expect i think that there are names in the industrial pace that still are cheap. putting off incredible amounts of cash and more upside even over the ngs ifs but i have exposure to both i i own caterpillar and jp morgan and some of the others i'm waiting for the financials but it's been a long wait and disappointing. but maybe the latter part of the year we see that accelerate. >> the industrial trade and whether it's been rails, whether airlines, whether it's been some of the other transports, i do think it's been a cyclical rotation back and forth. bottom line pete talks about the valuations they are more interesting in that pastor world. but this to me, the which it has acted last 12 months tech has outperformed and nonwe have seen the tech rally over because we get the move back to value. that's where we are. industrials have attractiveless valuation. i think they are front loa

can we look at boeing and caterpillar? both of these names started off the session lower.are exposed to global trade. they are still down. caterpillar down 1 1/2%. we have boeing lower by a full percentage point. there is the news flash. the trade war with china is frightening ceos. the latest business roundtable survey. they talked to all the ceos. they found 63% of ceo's say recent tariffs and uncertainty about trade would have a negative effect on their company's capital investment decisions. meaning whether they will spend money to grow in the next six months. ali mccartney, ubs wealth management. you have more than a billion assets you're watching with private wealth clients. translate to names of stocks, you don't have to name them but wealth stocks your clients own and whether this will have impact on the names. >> the markets don't like uncertainty. markets don't like uncertainty. individuals don't like uncertainty. ceos don't like to make decisions in vacuum with uncertainty. this doesn't distract us from where we are focused right now. we are in the longest bull

is the story for today's rally. >> caterpillar money is the story? that would. >> citi was so far behind record 119 and change, why the disparity. >> his bank can make a lot more money than just trading revenue, which is what -- make a lot more than morgan stanley, the number of cuts today, which is a fee-based business, that jpmorgan has made so much more money when they open the doors i would contend that bank of america is a close number two, but we're talking about next week's fed if you raise the rates and adopt raise how much you pay your depositors, it's a huge win. i was looking at how much i get on my cash balance it's pathetic, frankly. >> a little pathetic it's more than a little pathetic it's motivation for not keeping your money there >> well, when you put your money if tilray and bitcoin? >> yeah. you spread your money around the world in the form of -- >> but it's in real estate that's done by my wife who is in real estate. that's her business. >> we all benefit from that. >> we rent out our places. >> we have places to go. >> the pres

ever seen and that's going to be on the other end of the spectrum from the high water mark from caterpillar from several months ago. now the bulls are going to hang on cornell. >> well, it wasn't just cornell. >> but he was the most emphatic with that language. >> caterpillar is not selling to consumers. >> walmart has had the best u.s. camp sales in ten years. >> sentiment surveys, whether it's investor or consumer are very high right now. you know, that's been getting some aggregate demand. you look at the ism survey, granted it's manufacturing so to your point, josh, it's not the retailer, but it shows that this economy ibroadly moving very high >> new orders up 5% as well. >> there's cap ex being spent from the tax cut. >> let's talk about another big stock story that has ownership on the desk. you know we normally do our call of the day after the first commercial this one is big and it's facebook the stock is down 2.5% they take it down to neutral today. they cut the price target to 175 from 200 you see the stock is at 171 but there's some blistering commentary in here the likes of whi

. >> i'll give you name how about caterpillar.itched this a while become. 140, upgrade today you go over the last three years. they were earning $3 a share back in' 15 backup go to 16, 17 now 18 that number is now 10 or potentially $11 a share. why is that? because they have so much strength right now and they have all the capital. incredible cash flows. and you look how they are made up right now 50% from the u.s. really focused op construction here but you have the international component as well. you have a little bit of both. we have tim's world in the international because you were talking about that tim and the u.s. exposure. that's a name where i don't -- when you look where it phrased from a valuation perspective this is a name that has plenty of upside. definiteliwise it's under the snch 500 trades at 16, 7 something like that we are looking at a name trading at 11 or 12. this is a stock i think today -- the upgrade today i think they gave it a 170 target i think that's reasonable. they could hit it in the next year. >> a

it was propelled by rear drive sprocket wheels, mounting capital -- caterpillar-style steel tracks. its tactical mission on the battlefield was to support the advance of the infantry over no man's land. captain eisenhower was fortunate to welcome to camp colt two british advisors who commanded tank battalions in the battle of cambrai in november of 1917. one of the veteran officers was 46-year-old lieutenant colonel frank sommers who had been awarded his nation's distinguished service cross in march of 1915 and the distinguished service order for his leadership as a tank company commander during the battle of transferred back to the united kingdom in 1918 to organize tank training, he soon departed for the united states and was assigned as a liaison officer at camp colt. take a look at this photograph. i've got everybody identified except the young man on the far right. notice the older officer has a black armband. that is for his son who died at the battle. the other british advisor that you see here was major philip hammond "at about the same time we received the tank, two british

usually it's the boeings and caterpillars but what about now with the additional tariffs? >> it's incredibly broad based. they feel some 6,000 comments from a industr from individuals on the impact of these tariffs. companies like dell, intel, apple warrant about the potential impact on some of the products they use to make their goods. you're also hearing retailers like office depot and sears saying that they might have to raise consumer prices. then, of course, manufacturers like cummings and owens corning, they're also sayinghat their supply chains will be disrupted. so the size of thea tariffs that this is veryad b based and almost every industry will be affected. >> ylan, china has vowed to retaliate so where does this leave negotiations between the u.s. and china? >> reporter: sue,od earlier white house economic advisor larry kudlow said presdent trump not satisfied with the state of the talks with china so far, however, he said they remain at the negotiating table. they were waiting for china to comek and discuss these issues with them, however, one senior administr

the dow suffered its bigge drop in about a month and led lower by boeing, united technologies and caterpillar beginning talks with japan and so far also appeared to ae off to difficult start. no surprise that the usual trade-related suspects traded down. metal to mining stocks, oil companies and large chinese stocks like alibaba, and baidu. it fell off 3% and it was strong hose atal media and for home keeping score of what exactly moves the market. number one it'srade fears a number two, it's the federal reserve raising rates, and number three, technology, leadership faltering, but political turmoil in washington, not so mucht a big mar mover. for "nightly business repois," i'm bobi at the new york stock exchange. >>> apple says some of the proposedit tariffs would some of its products. in a letter to the u.s. trade representative,pplendicated that a proposed 25% tariff on $200 billion worth of chinese imports would affect a wide variety of its productsg includhe apple watch. shares fell a fraction in ing today. >>> well, trade, the economy and taxes are just some of the issu b that wi on the

>>time to look flou at some of the upgrades and downgrades we begi with caterpillar groupad from outpaerm to neutral. the demand growth any say will continue into the next year. price target at $191. the stock rose 2% today to 156 even. ralph lauren was upgraded to neutral from underweight pat piper jaffrey. the anast says earnings estimates are likely to go higher for that company. price t now shh 125. stock gained more than 1in the rally at 136.17. >>> general electric's pce target was cut to $10 over at jp morgan. the analyst expects weaker results for the power business. the rating remains eiundet. the stock fell 3% to $12.46. sketchers was downgraded to market perform from outperform at could youen. the analyst slights growing vrpt levels and the price target is 28. the stock fell 5%o 26.58. >>> still ahead why one business owner says don't toy with tariffs. >>> it has been a tough year for the toy makers as many lost a major partner when toys "r" us filed for bankruptcy and closed its doors. acing at industry is another blow, rising costs from tariffs. elon mo dwr is in northtown, p

. >> caterpillar up when trade looses down. it is not always good news on trade.industrials are down. bad day for bank and the banks are doing nothing again >> this is at the nasdaq back to you. the dow is down for the first time in five trading days. less than 100 points naz dang down 1.4% amazon's decline, apple as well. russell 2000 falling a full percent. kimbal musk is talking about how president trump's trade war with china could impact his latest venture in the food space. >>> on this market we have cnbc mike santoli we are awaiting an announcement. it could come when it comes to china trade. do investors assume it is the next round of tariffs? >> i think it's the apprehension no saying for sure but i think a lot of that i think is more or less priced in we don't know for sure finally if it is all is. i think the play book is pretty clear negative trade headlines has a quick negative effect. it hasn't lasted all that long i look today and say s&p has been kind of oscillating in this area first caterpillar was the leader of the dow it wasn't the case >> simi

and this tiny caterpillar pot from the city university london long is capable of carrying heavy loads an area inside the body requiring treatment. the robot can move efficiently inside surfaces and immersed in bodily fluids. and for an more digestible and dread news, research is at the university of cambridge have developed a leftish peeling robot. using image recognition to detect the letters, such an case of the leaf without damaging the rest of the vegetable. the entire process takes a savoury 27 seconds. if you believe the hype every year for the last two years was the year of virtual reality. but despite that, somehow virtual reality has still not gone mainstream. so last year we talked about how our long—term goal was to help get a billion people into virtual reality. let's start off with how that is going all —— how thatis with how that is going all —— how that is going. facebook invested billions in 2014. at the 0culus conference this week, an embattled mark zuckerberg get a good user wa nts. mark zuckerberg get a good user wants. i am excited to announce 0culus quest. vr this

think boeing and caterpillar. in fact ups hitting all-time high today for the second day in a row.ump up against 3%. federal reserve set to hike interest rates one week from today. look at nasdaq. this is a different picture. it is lower. it has been a seesaw week. big cap tech names like apple, amazon, and microsoft under pressure. word on amazon the eu is looking how they do some of their business with their merchants that is the latest from the floor of new york stock exchange. more "varney" after this. attention homeowners age sixty-two and older. one reverse mortgage has a great way for you to live a better retirement... it's called a reverse mortgage. call right now to receive your free information kit with no obligation. it answers questions like... how a reverse mortgage works, how much you qualify for, the ways to receive your money and more. plus, when you call now, you'll get this magnifier with led light absolutely free! when you call the experts at one reverse mortgage today you'll learn the benefits of a government-insured reverse mortgage. it will eliminate your mont

. —— caterpillar. how much trouble is he in? quite a lot.cantly increased problems for brett kava naugh significantly increased problems for brett kavanaugh and the nomination and it has done just that. you have to remember that the senate judiciary committee that has been hearing the evidence has already agreed to hear from hearing the evidence has already agreed to hearfrom christine blasey ford on thursday, the first accuser, and it is difficult, having done that, for the not to hearfrom and it is difficult, having done that, for the not to hear from the second accuser. can they do it before thursday? pretty unlikely so it will throw the timetable off if nothing else and it will increase the pressure for an fbi investigation which democrats have been pressing for and the white house has been resisting. all this against the backdrop of the supreme court session beginning on the 1st of october when they want him nominated by and keep mid—term elections in november when there is a possibility the senate could flip to democrat controlled and

honey well, caterpillar, all stocks that should have gone down and down hard if we are concerned about the tariff war you know what went down? f.a.n.g. f.a.n.g has hardly any chinese exposure let's see what it tells us united technologies is the major player united technologies is tripling in china first the elevator business third, when it comes to the aerospace business, feel any stress in that relationship. you didn't expect this stock to be performing worse than it is yes, they had veto power, the stocks trading just a couple of points away from 52-week high, that tells me wall street isn't worried about the future of industrial and china another one, emerson electric. emerson has been there forever just this summer, the company decided to build a research center in china. with we were worried about the trade war, this stock would be at or near its low instead it is a couple of cents away from its high honeywell. but you know what is not overlooked, the chinese exposure bared sites honeywell's double digit growth it makes sense to me, when ceo came on the show and made a compelling

both deere and caterpillar took legs lower, but rockwell is in the green.a clear reaction when it comes to companies that you would think would be affected most by more tariffs potentially. still, this is what we have seen pretty consistently. there is a reaction in the market, but it is neither a consistent nor a dramatic or large reaction, because even and the decline in deere caterpillar, neither is down even 1%. of's get a better picture the year, and look at the s&p industrial index as a ratio to the s&p 500 overall. we have seen underperformance and trending lower. we have seen it bounce off the lows, but even today the industrials are doing well, versus the s&p. here definitely not clear what market participants think about all of this, or the takeaway is they do not know what to think. caroline? caroline: julie, we thank you and our entire markets team. let's talk, more tariffs. president donald trump instructed aides on thursday to proceed with tariffs on about $200 billion worth of chinese products, despite the treasury's work to restart talks wit

caterpillar looking really good here. the way they put out retail number last week that were phenomenal. that this is the best moving economy in the world. we have a pretty mixed bag.>> so much for trade tensions when you've caterpillar leading the way. >> it is really amazing they are doing extraordinarily well. we will keep an eye on that for you. meanwhile, the woman accusing judge kavanaugh of sexual misconduct says she's ready to testify. now top top advisers say she should be heard. we have judge napolitano next. how do you win at business? stay at la quinta. where we're changing with stylish make-overs. then at your next meeting, set your seat height to its maximum level. bravo, tall meeting man. start winning today. book now at lq.com designed to save you money. wireless network start winning today. even when you've got serious binging to do. wherever your phone takes you, your wireless bill is about to cost a whole lot less. use less data with a network that has the most wifi hotspots where you need them and the

caterpillar is among the worst. industrials are areas of that are affected by the trade war, the idea that global demand could be affected and that could eat into profits. gm is down 12%, on pace for its worst quarter since 2014. here is some area of weakness. a bright spot, let us take a look at oil. sectorup 2.3%, the best on the day, helping to explain why weaker sectors are being offset by this energy strength. we do have cautious selling. haven bonds are pulling back. david: thank you. coming up, we talk with a former united states attorney in the -- an and -- about rod rosenstein. this is "bloomberg." ♪ david: this is "balance of power." i'm david westin. we turn to mark crumpton for first word news. >> deputy attorney general rod rosenstein, the official in charge of robert mueller's russia investigation has verbally resigned to john kelly. tell bloomberg rosenstein delivered his resignation to general kelly last week. it is unclear whether he is planning to follow through with a formal resignation. this foll

remember back to the caterpillar hi mark? we were worried about the slowdown and how it would hit.w profitg with growth because we are worried about the rest of the world. romaine: so at least it is profit growth -- joe: so at least it is profit growth. luke: exactly. the expectation is for global profits to deteriorate so it is the only place to be is one way to read the survey. romaine: luke, thank you. we have breaking news with jpmorgan. they are raising their dividend to $.80 per share. the current one stands at $.50 -- $.56 per share. they are boosting it to $.80 which is pretty big. caroline: we will see how those shares react after hours. we are taking a deeper look into crude oil and intelligence is up next. this is bloomberg. ♪ . ♪ caroline: let's get the outlook for oil. they have been trading higher today and up in terms of brent contract. that is on the back of saudi arabia. our next guest is taking a look at the energy sector through satellite imagery and machine learning. anton joins us now -- and one joins us now. how did your company china light on the supply situa

which give mustard its flavor were evolved by the cabbage family as a chemical defense against caterpillars. hey, there. hey, you're early. the movie doesn't start for an hour. actually, we're not going to the movies. we are here to kidnap you. what are you talking about? well, you eloped and we didn't get a chance to throw you a bachelor party, so there's a van downstairs and we're here to take you to a surprise location for the weekend. well, i'd hardly call this kidnapping. where's the blindfold? where's the duct tape? where's the part where you call me and demand ransom and i try to keep you on the phone, but you hang up seconds before i can trace it and then i say, "i'm getting too old for this crud"? when do we leave?

we are higher by that by 20 points boeing, caterpillar, tech outperforming.enry blodget, business insider ceo talk about the action we are seeing what do you make of this took 8 months, we are finally back to the industrials. >> everybody loves a bull market great. valuations are getting more and more extended. as we know, can last for a lot longer than you think possible >> we had a year of multiple compression. are things expensive in your view >> the market as a whole is tremendously expensive on any cyclically adjusted metric nobody should be surprised by draw down, hope it happens way in the future and hope it is a new era of valuation >> steve, where are you? >> yesterday was an interesting day. price to sales ratio that just passed what we saw in 2000, so 19 years and it is getting scary. i agree with henry we love for this to ride as long as possible, but it is feeling like it is getting scary >> steve, is it time for another rip good times slide deck out of silicon valley how come more people are worried, sending messages to limited partners, to inve

dow is up by names that have exposure to china, like nike, intel, caterpillar >> i don't think you can priced in entirely, but it tells you when the market has lived with a particular threat for six or eight months, we worried about it, talked about it, and parts of the market were punished for it, it isn't much surprise we were down yesterday, up a half percent today i think that one of the mechanisms it was going to hurt if it was going to was fears of severe trying to slow down, disorderly chaos in dollar markets. none of that is going on now you don't have that channel from trade fears to today's stock market the way you might otherwise. >> i would say mike hit the nail on the head. it's probably mostly priced into industrials, not fully now it is seeping into tech. think back to second quarter tech rallied hard, it was supposed to be the safe haven for trade fears. nobody is saying that any more >> hard to know what tech means any more we are separating things to different categories oracle's report last night that didn't impress a lot of analysts, then adobe's report last week th

here is the dow movers you have your boeing, caterpillar, chevron stronger on oil today. tech has been weak and the banks where doing nothing again today. goldman sachs, 11 days in a row on the down side semiconductors all weak. pressure in the techs. we had a big goldman sachs down growed grade of the whole group so we're not getting a lot traction most important thing right now is china trade wars. the dollar has been quieter. tech leadership is an issue today. fed rate highs are not disruptive yet and finally speaking of china, big ipo today here, we have a tesla competitor, an electric vehicle company going public here at the new york stock exchange $6.26. strange number price at the lower end why? a simple problem don't go public when you are in a bear market. china stocks are down, about 20% to 25% so far this year. and of course you have a lot of issues with tesla and their performance recently pretty pictures though of electric vehicles. >> impressive looking cars >> they have only made 1600 vehicles, so that could be another problem. >>> all right. let's bring in

boeing, caterpillar, intel and apple pushing the dow higher today. and a final point, neil, on the bond market, something you brought up. ten-year treasury yield backing up to 307. no matter what happens here, is not having an impact on stocks, whether it is hovering in recent days and weeks. if it were to get on 3.11, the highest since 2011, none of that seems to hurt the stock market and it's backing up. i saw a tweet from our old friend brian wesbury, he said some of the business networks and including us in this, should call back the analysts who said 3% would be the end of the stock market, if the 10-year treasury yield were to get to that. it's been there, and above, that and the market today at record highs, neil. something else. neil: connell, thank you very much. and you're right, that was something expressed by a lot of folks, over 3% on the 10-year note, gray-haired folks remember when it was well north of 10% we would have trouble. everybody is stepping back, seeing it in perspective, the strong earnings, the political and other drama tha

remember, we use boeing and caterpillar as sort of proxies for trade war discussions. they're having a great day apple, another one having a great day, and all of the steel metals, mining companies we use as proxies for trade wars. they're having a good one. fit bit exempted from that, where the other thing is people saw the chinese stock market holding up it was up about 2% be careful here. china is up because there's a lot of talk of more stimulus over there, and you can see that if you look at the leadership of what was moving really big over in china. you saw it from jack mah, and all of them are trading down, although not dramatically. be careful thinking trade doesn't matter you look and say, oh, trade doesn't matter trade war could last for two decades. what was the most passed around comment on any of the trading desks this morning the chinese businesses could even move outside of china placy's ceo also said more tariffs are going to affect our businesses you'll hear a lot more about this in the next couple of weeks assist we go into earnings season back to you

boeing, caterpillar 3m, utx accounted for most of the gain. what do you make of that?ls have underperformed a good portion of the year, as a group, relative to the more digital or tech names. so a little bit of relief rally there. lauren: do you see unintended consequences with the trade spat, trade war with china, in that china bulks up its own manufacturing, its own high tech manufacturing and they can just do more for themselves? >> you know, i don't think that happens soon. one of the big issues on the table is intellectual property and key negotiating point from the us is they don't want u.s. companies to have to turn over intellectual property to chinese partners to access the market. i think if that's secured, that puts china in a least favorable position as far as being able to bulk up. lauren: how does this affect the economy? how does it shake out. you have seen some companies trying to get ahead of the tariffs by bulking up orders and getting more goods in now. that inflates the numbers. how do you see that playing out let's say in the new year. will there b

>> the dow is up, being led by sensitive names like boeing or caterpillar.sting reaction, counterintuitive if you look at the headlines, financial publications in the media. even overnight, china's market was up, their shanghai market was up almost 2%. there is a couple of theories. one is that perhaps the escalation of this gets us closer to a resolution. also the 10% tariffs announced weren't 25%. there is a few things that work here. >> harris: is there a time to get this to the point where it is not so escalated? you always hear time is running short, you know the component china plays in north korea to denuclearize. is there a timetable we should be aware of? >> it could be to date -- the ceo of alibaba said it could take 20 years. this week or in a year, 2,038. i think it could be resolved fairly quickly and i think there is a lot at stake for both countries. i do believe that we have the advantage and i think if we were ever going to fight this fight, which is long overdue, this would be the time to do it. >> harris: what would you say to those compan

it was helped out mostly by gains in boeing and caterpillar after there was news of potential trade talkstates and china again. the dow's gains were capped by losses in 3m

even if there is recent runs, caterpillar stock went from $138 to $156 including today. it's off 17 points from the january highs. hey, doesn't that mean it has room to run? for those of you really concerned about that move, listen while the stock was marking time its earnings went higher it sells for 12 times next year's numbers i think you are getting a bargain. now, i am not denying the trade dispute with china keeps escalating i think it's getting hotter and hardly no doubt about it. but last night jamie dimon, the head of jpmorgan told cnbc he thinks, and i quote, it's not a trade war. i call it a skirmish, end quote. he explained if you look at tifs on $200 billion, just make belief they got passed on to american consumers, they have to pay another $20 billion, something like that. it's a $20 trillion economy. so the actual economic effect is not that dramatic, end quote i think he is right. we will go over it again on monday, okay i have to flesh this stuff out way tooimportant a good interview coming up as i told you over and over again, we have a lot less to los

nike which i get to in a moment, goldman sachs and caterpillar.e three names are accounting for about half of the dow's losses and when we talk about nike in particular, so we have colin kaepernick as the face of the just do it. believe in something, even if it means sacrificing everything. this is the 30th anniversary of nike. they chose colin kaepernick as their face. some traders first thing walked in, how about the marines? they had a million and one other people would have preferred to have seen. others thought he was a good choice. you saw on social media, one person said, dear nike, i appreciate thaw are standing with colin kaepernick. there is also the #nike boycott. the boycott seems to be more front and center. it is taking down foot locker. charlie brady says 2/3 of food locker's revenue comes from sales of nike products. so there are worries surrounding both of those. a quick peek at the tech titans apple and amazon. both hit all-time highs. apple hit trillion dollar mark in early august. amazon today, did the very same, crossing a tri

caterpillar leading the way.tick around, "squawk box" will be right back. >>> welcome back an investigation into mark cuban's dallas mavericks uncovered a two decade long culture of misogyny and harassment the investigation found no evidence that cuban participated in wrongdoing or even knew about it he spoke to cnbc yesterday >> first an apology to the women involved a couple women were assaulted. not just to them but to their families because this is not something that just is an incident and then it's over it stays with people it stays with families and i'm just sorry i didn't see it i'm sorry i didn't recognize it. i hope that out of this, you know, we'll be better. >> adam silver calling the findings of the investigation disturbing and heartbreaking >> if you ever had an embarrassing typo in a work e-mail or even worse, if you get a tattoo -- >> i've seen them. you think would notice but employees of cathay park airlines knows the feeling one of the planes made it to the runway with it spelled like that i do

i'm proud of caterpillar and comcast and and expansion in southern arizona.ou can have an improving education system and an economy that is providing jobs for our kids. the governor has to balance different parodies. and publicucation, safety are what we have been working on it he do see administration. >> this one is for you, mr. ducey area -- mr. ducey. you said arizona is open for business which included a lot of deregulation. what is the definition of open for business? >> great question. to one or 40,000 new private sector jobs come to the state of arizona in the last three years. we've had three hanna companies expand or relocate here. the last time our unemployment rate was this low they were meant -- people were renting their movies at blockbuster. california,eaving the oppressive taxes and regulations. we have simplified and improved our taxco the last three years. we eliminated 676 regulations. a higher quality of life in a better place to live. with their feet and arizona is one of the top five fastest growing states in the country. where there is

have thought in the face of all of the trade chatter and noise that you would have stocks like caterpillar and boeing and these others up as much best quarter for industrials in five years is this where you want to stay >> we're actually advising clients to stay in u.s. equities more broadly so it's not necessarily a sector play but u.s. equities going into the end of the year. the fourth quarter tends to be the strongest. and so we have a lot of clients that are asking should i pull back on my exposure? and the conversation there is convincing people to stay invested because we think the market has room to grow. for those people who are a little nervous, though, protection is really cheap we look at volatility in the market it's at 12%. historical averages are closer to 18% and so you can buy really cheap down side protection if you're a little nervous to get you through the next six months. >> mark, how do you see it >> the anti-trade war trade that we're experiencing right now i think investors have finally come to the conclusion that a lot of the multinationals have been unfairly punis

opportunity, and i'd like to broaden it beyond the dow 30, but intel may be up but so is dowd dupont, caterpillar, disney, microsoft, the list goes on. >> i own every stock you named fred listen, today tech rallied, materials rally, stable rallies. tech is really two areas. it doesn't matter, they all rallied together. tonight we have micron earnings. i've given you this name before. i about got punched in the no's on this name. we have a little bit of a bounce a couple days ago at $41. i bought it there, i think you can still buy it here at 46. if you get into this trade today, i'm telling the home gamers, i think you want to sell a call, maybe a 48 hour call or $45 push, maybe want to sell both of these to lower your bases by about two dollars. you buy at 46 but it cost you $44 net if you know they mean. then you go on to the earnings tonight, maybe you see a little rally tomorrow, maybe not, either way you have a lower base. >> charles and want to finish with you because we've got the august existing home sales, they kinda flatlined but this after a couple months of downward movement. this is

97% invested in stocks and 3% in a volatility hedge i took that 3% off yesterday and put it in caterpillar. and this is simply respecting what the market is telling me. forget volatility right now. everything we've been talki ini about industrials, you look at this chart and you have to say if not now, then when? if not now, then never this is attractively priced unless you think there is a recession in the offing which i just don't see >> my time frame is eight years not eight weeks, not eight hours. i look at the business whether it's deere or another company i particularly like 1.8 billion shares in stock. >> we're on the same rhythm now. >> you bet it takes a while for me to adjust independent of that over the next three or four years the stock goes from $12 to $20 who knows what happens beans are down to $8.27. the resilient farmers applauding and so there's a lot of things going on i'm looking at where is the company going to be worth three or four years from now, and where do i buy it relative to that that's my time frame. >> if someone comes up to you and just says with the most si

closing in negative territory for the second day, weighed down by trade sensitive stocks like boeing, caterpillar, 3m. nicole petallides on floor of the new york stock exchange t could have been worse. >> it could have been worse. we came down off the lows. we're down about 1/3 of 1%. president talked about more tariffs ready to go. $200 billion in the hopper ready to fly out there. that certainly put people on edge. intraday we saw the dow sell off. we've been up three weeks for the dow. today we're seeing markets to the downside. you saw the selling. s&p 500 down a quarter of 1%. here is a look at tesla, down just for this quarter, about 25%. so of course, elon musk appear's rogan's show smoking marijuana. tesla employees allowed to do that? i don't know. meantime we have so many things. departures of executives. you have investors on edge. and i spoke to james at consumer edge. basically they are suggesting that somebody else come on board a co-ceo, someone who can drive the ship and help elon musk with his vision. meantime, as i mentioned, this week to the downside, a lot of tech stocks got h