for "nightly business report," i'm courtney reagan in nework city.>>>ome new reports on the economy added to the optimism today. sthe servi sector expanded at a faster-than--tpected pace in august, driven by a rise in business activity a new orders. the report gives investors a sense of business conditions for things like restaurants, banks, and consulting firms, and the services secr accounts for more than two-thirds of u.s. economic activity and it's been expanding for 115 months. >>> and the. oth new repor this morning said that private compmpies in august added the st jobs in four months. according to adp, payrolls grew by 195,000, ave t estimates of 140,000. many of th00 new jobs were in te ucation and healt services fields. adp is the largest processor of paychecks for thousands of companies and for millions of >>> and then rrow, as we mentioned earlier, we are going to get the government's monthly bs report, and it comes at a time when there are plenty of questions about the health of th labor market. brian levet is global markets us to talk a

i am courtney reagan in today for brian sullivan we are half way through the 5:00 a.m.urs to go until the opening bell sounds. the dow jones, nasdaq and s&p 500 indicated slightly ower opens. a lot waiting to see the decision and commentary will be. let's look at what is going on in the treasury market as we look at the spread between the 10-year yield and two-year yield. two year sitting at 1.711. looking at the asian markets remaining focused on the reserve. a bit of a pause in a lot of big movements around the world for trading before we hear from chairman powell. we did see mixed action in asia overnight with the shanghai kpozikpo composite higher european markets open for trade. we have several hours to go largely in the green muted as we wait for the federal reserve. turning now to saudi arabia. set to hold a news conference later today following the weekend attacks on the the processing facilities. as they gain back some of its gains. wti higher by 5% right now hadley joins us from the region. >> reporter: good morning. we saw a major price correction after a pre

courtney reagan is at the annual goldman sachs retail conference where we got the starbucks headlinese's got the rest of them for the major companies there so far. court? >> hi, kel most of the ceos here feel like the u.s. consumer is strong. lowe's ceo says the macro environment is supportive of home improvement and not just things you have to replace like a refrigerator but more discretionary categories >> we feel confident that those discretionary categories are holding up really well to levels that give us confidence that the consumer feels good about their economic situation >> also today tapestry replaced its long time board member jide zeitlin and he says the economy is still strong despite tariffs, a big uncertainty point for the sector and the consumer in general the fear is that if higher prices start to deflate consumer confidence and/or spending, what impact will that have sort of on the broader economy? invially, the retailers are managing through >> what we are seeing is a relatively small percentage of our products are facing price increases from the vendors as they hav

here to take on the headlines are courtney reagan, robert frank and seema modi welcome, everybody first up, smile direct club. not a great debut. shares opened below their ipo price. down nearly18% this is on pace to be the worst ewunicorn debut of the year. even worse than uber, because that was down 7.5% we just mean a billion dollars in size or larger. not great. >> not great and it's also interesting how many other competitors are out there. there are two or three that have been rise e raising a lot of pr equity one told "the wall street journal," everyone has teeth, everyone has noses, too. but we're not going to have nose straightening technology over the internet >> i hate hearing the total addressable market it's everyone with a pair of teeth. is someone going to invent a better mouse trap? candid is a company i've seen all the time >> leslie's interview was terrific where she was raising some medical concerns from doctors and orthodontists about gum disease and all these other issues which are scary >> if you look at align technologies, that stock is down over 50% it's patents

it's rapid fire to break down the headlines with dominic chu, courtney reagan and we've been talking of tennis, but it's time to move on let's talk some wework instead the parent company is having evaluation struggles again "the wall street journal" reporting that the new valuation could fall below $20 billion that's well less than half of the $47 billion valuation it received earlier this year sparking all kinds of discussion just last hour dick was quite tough on wework saying basically they're giving all of tech a bad name right now while you have ags about to go on the supreme court steps coming off technologies they're making themselves the postor child giving us all a bad name. >> he talked at the top of the show that a lot of enterprise software companies are underperforming the market today. that's been the momentum trade one of the things that's also interesting is one of the etf's, the ticker ipo is down about 3% the past month from a 50 two-week high. >> yeah. >> no doubt. but the overall market has been up 2% in the s&p since then. so are you starting to see signs of this

>> all right, courtney reagan. thank you very much for that. >>> turning now to facebook. ceo mark zuckerberg meeting with lawmakers on capitol hill to address the growing number of calls to break up the company. zuckerberg even making it into the oval office with president trump, who later called it a, quote/unquote, nice meeting. while washington seems to be laser focused on tech privacy and regulation right now, the numbers would suggest that users and customers might not be for more, i'm joined by policy analyst at the american enterprise institute, and ylan mui as well. take us through the play-by-pray what exactly happened with mark zuckerberg, ceo of facebook, and how many lawmakers is he meeting with these days? >> reporter: he's met with a lot of lawmakers, dom. he's now officially left the capitol. he is done with meetings today, but he was also very careful to make sure that he met with lawmakers on both sides of the aisle. so this morning, he met with republicans, minority leader kevin mccarthy as well as doug collins, one of the top republicans on the judiciar

courtney reagan has details. >> with less hand 100 days until christmas two consultant groups are outith upbeat holiday sales forecasts saying will grow 5% above last year topping $1.1 trillion. alex partner's forecast the sales increase a little bit more than that both forecasts are twell above l year's who will tau sales growth. >> we werep against interesting interesting camps in the midst of a government shutdown and december w also had a really tough time in the market. and so we have a lowerase to compare to. that's one reason the forecast is higher., secoemployment and job growth continues to be good appear that bod well for the consumer. >> this year they warn that while the forecast strongs for a strong season it axe acknowledges unprecedented uncertainty. so i want retail clients to, quote, be ready for virtually anything both this holiday season and into a 2020. >> what we can't factor in is uncertainty. and so our advise to i clien really related to focusing on the element of uncertainty that that are likely to drive consumer behavior oneirection or the other. and then be

courtney reagan is tracking the movers, dominic chu is diving into the sectors at all-time highs to find some undervalued names and sara will have more on today's jobs number and jerome powell's comments. >>> stocks selling on gains, though off session highs, briefly negative early in the session. materials, health care are the leading sectors, utilities lagging. docu-sign, earnings miss overshadowed by a revenue beat the ceo points to a growing number of customers and some new product launches shares up almost 21% >>> beyond meat issued underperform on d.a. davidson. but the firm says it's not a negative view of the company or the ability to execute but a cautious approach to the total addressable market, which they think might be more like plant-based milk right now those shares are down more than 4.5% sara. >> who knew. courtney, thanks. >>> consumer staple stocks near the top of the pack today. also among the strongest sectors in the past month, dom chu with a look. >> past year, whatever you want to call it, consumer staples have been trading so much higher than the broader market.

. >> i'm courtney reagan are in today for sara eisen trade optimism tariff sensitive stocks like apple continue to rally. yields bounce as they called the fed, quote, bone heads, saying rates should be taken down to zero or even less. >>> and possibly easing sanctions on iran. josh, kind of a quiet market day here interesting rotations going on what do you make of the action today? >> this week it's just been incredible for anything of value versus growth, anything small over large and there's a tend densy when we see these outside moves. for example, russell up 5.5% over the last week there's a tendency to look at that and say i've missed it or that has to be the top of something. when you actually go back and find examples of this sort of thing happening in the recent past, actually that always had taken place at notable bottoms in the russell 2000. for example, we had three versions of this in the year 2016 where you have just this incredible week for small cap, for value and it wasn't the end of something or a blip it lully was the end of the selling. you can stay with this trade i

. >> i'm courtney reagan are in today for sara eisen trade optimism tariff sensitive stocks like applee to rally. yields bounce as they called the fed, quote, bone heads, saying rates should be taken down to zero or even

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courtney reagan has a little lesson in called price elasticity. >> i need the screen, brian. professor. >> thank you very much if you want to figure out how retail is handling tariffs you have to brush up on economics 101. typically raising prices is the last option. if that's the case, it doesn't necessarily mean the tariffed goods are the ones that end up with higher prices well, it's largely determined by price elasticity this is the economic theory that connects price, quantity and demand so this is our demand curve, right? so for an item that's demand elast elastic, it's going to be higher up on the curve which basically means -- i knew i would have a couple here. the higher the price. >> she's heightening the higher the price, the fewer items that a consumer is going to buy now, if it's less demand elastic, it's going to be over here on the curve which basically means that prices that go up are not going to change the quantity demanded as much. there is such thing, of course, as something that is perfectly pliesed in elastic inlins or milk >> you have to buy it. >> you

courtney reagan has that part of the story. hi, court. >> reporter: hi.now 98% of u.s. retail companies employ 50 people or less that means 40% of retail employees or 11.5 million people work for a small business in retail we are here at united legwear and this is a company that has about $500 million in annual revenue and 1,000 employees so larger of one of those private small retailers. they manufacture legwear and accessories for brands like sketchers and puma and a number of countries, china, by far the biggest. they make 270 million pairs of socks there. every year >> as far as being able to protect our financials, our margins, our infrastructure, sourcing base and overall supply chain. >> reporter: now, carlton's is just one clothing store that sells tommy bahama and it's in delaware the co-owner said a 15% tariff increases his prices and expects to lower the amount he sells and worried about the larger domino effect of tariffs. >> my consumers paying more at the grocery stores, the hardware stores, et cetera and coming in here with less dollars to

courtney reagan is here with a preview. hi, courtney >> hey there, joe.'re going to sit down with c.e.o. kevin plank and chief operating officer patrick. we're going to talk about the consumer, talk about tariffs, talk about strategy and lle ottion, maybe a little coegfoball if we have time that's when "squawk box" returns. y independence. mmm... good. so i've spent my life developing technology to help the visually impaired. we are so good. we built a guide that uses ibm watson... to help the blind. it is already working in cities like tokyo. my dream is to help millions more people like me. ♪♪ it is already working in cities like tokyo. ♪♪ ♪♪ >>> welcome back to "squawk box. uber and lyft say they won't reclassify their drivers as employees despite a new bill that was just passed in california that legislation is designed to give so-called gig workers things like minimum wage and overtime by calling them employees rather than contractors. uber's top lawyer says the bill only gives companies a higher bar to prove workers are true contractors. and he's co

the ones that don't have the same negotiating power as giants like walmart and target and courtney reaganns us now with more. the little guys, courtney. >> reporter: that's right. believe it or not, more than 98% of u.s. retailers employ 50 people or less, which means about 40% of the country's retail employees work for what is considered a small business this year this is united leg wear this company does have a thousand people employed directly, 200 people employed indirectly around the world. annual revenue of 500 million. it designs, manufactures and licenses leg wear and accessories for brands including puma, champion and sketchiers. it manufactures in other countries, china is the biggest. >> we see that the tariffs are going to inevitably drive inflationary effects in the u.s. consumer base as well as price increases at retail. and it is going to end up slowing down capacity needs, retail needs, retail selling and in turn will decrease our ability to build our employment base and continue to grow our employment base in the u.s >> reporter: gold metal international is an accessories

turning to retail, a number of companies speaking out at retail conference courtney reagan joins us with more hi, courtney. >> hi, sara. a lot believe the consumer is strong there is uncertainty around tariffs, of course, but many are managing through ceo marvin ellison says broader economic environment is supportive discretionary holding up well. no evidence so far there's any trade down even and some of those big ticket items dick's sporting goods ceo ed stack said he and his vendors used their negotiation power as well as their buying prowess to do a pretty good job mitigating tariffs. therefore, there's going to be relatively few price increases williams sonoma ceo laura al better saalber said in the areas they counter-raise prices they have more four than they thought. patrick gris merced u.s. environment is supportive and helping his business even though the company lowered the forecast for the year disappointing the street back to you. >> thanks very much. >>> starbucks is not the only company revising forecast, jetblue and tyson in the last 24 hours also let's get to mike santoli

courtney reagan joins us live from the conference with highlights courtney >> reporter: hi, sara.k about the ceos of course being asked at the goldman sachs conference about their best tariff mitigation strategies, their expectations for the second half, what inventories will look like, as well as even store bases over the next two years. as you could imagine, the health of the consumer is front and center today starbucks ceo patrick breeze merced he does believe that the u.s. consumer is healthy and the greater macro environment is helping his business here domestically, even though the company set its profit forecast for the year below analysts' estimates. tapestry's ceos is new this is the parent company for coach and kate spade i had an opportunity to speak to him very briefly he also believes that the consumer environment is healthy in this country and he believes that that's going to help propel their multi-brand strategy forward in the come years. tariffs a big point of uncertainty for many retailers, particularly if a number of companies end of passing along the higher cos

did you see on the 5 this morning, courtney reagan did a segment about neuman >> the ft has this piece webcast yesterday he admitted he needed to learn some lessons about running public companies that his personality played a role in this ipo delay. >> he mentioned the word humble. >> people hope he feels that way, it would help. >> you don't think he has remorse? >> i haven't spoken to mr. neuman i look forward to talking to him at some point, privately, publicly, or both. >> he's funny, you know. >> he's a very charismatic man >> totally. >> you don't found and create a company like that without having a lot of talent. >> i find him spell binding. >> a lot of people frustrated with him, i can tell you, inside and outside, some frustration in terms of his unwillingness to listen absent by saying he's been humbled, maybe he listens more those who perhaps can impart some valuable advice and they're able to get this thing going next time. we'll see. i don't know they're going to be able to. i don't -- >> i know, but -- >> very difficult. we'll see what the numbers look like. >> tim cook