for "nightly business report," i'm dominic chu. >> sohat happens next to the market? joining us to talk about is dean sanders from small cap investme strategy a whittier trust. welcome, good to have you with us. >> thanks for having >> let's start with the day's late news and that ishe guilty plea by president trump's former personal lawyer mr. cohen in a case that now iolves campaign finance violations that he says were made at the direction of the president. does this introduce a political headline risk into the broader market that is more than the market can withstand? >> well, i think the last point of your statement is the most important thing. there's definitely been thopolitical risk ongoing for a while. e's not new allegations and we've seen this coming for a little bit of time and the fact thatha w eight plea convictions is a little bit interesting, but i don't think it's too much for the market to thstand. we've seen broad, fundamental strength across a nu industries and sitting at the end of the y, the market will bea able to move forward and the topolitica

dominic chu explains how it works. >> reporter: buy low, sell high. that's simple market cliche capturing the essence of investing. purchase an asset like a stock today at a certain price. and if it goes up in value, sell it for a higher price at a profit. for most investors, if that formula works, y make money. fit goes down in value, you lose. but what if you could make money by reversing the steps? sell high, then buy low. that's the basic framework for a short sale. here's how it works. let's say zyx corporation shares are trading at $100 each. but a trader believes the shares are only worth about $90, given its businessprospects. that trader then goes out on the hunt for anyone who owns shares of the company who's willing to let her borrow them with a promise to return them at some point in the future. once the shares have bn borrowed, the trader sells them at the current $100 price and pockets the money. if she's right and shares fall to $9 in the future, she then takes hermoney, buys the stock at $90, and returns those shares to the original ow

that's when that contagion takes effect >> well said dominic chu, thank you very much >>> let's bringanton you focus on banks i know you have regional things, u.s. stocks to talk about welcome, by the way. you look at financials they're taking a hit because of turkey you are worried about this >> you never know the outcome. escalation can go long ways. having run money for 22 years, i've seen it all >> you not only walked through crisis, but numerous turkey crises you hope for reconciliation. none of the comments this morning lead to that dominic said dead cat bounce that's what it looks like. hopefully people calm down how do the turkish companies repay their debts to the banks, the bond markets they can't they're very levered they can't pay back those debts until the lira strengthens everybody has to play nice or we do have contagion. >> your fund and your company focuses on banks and financials better or as well as anybody in the world. are you looking at some of these big international banks that have been beaten up? are you sniffing around them or will you focus more on the u.s.

i'm dominic chu. let's get straight to the markets.tability in the futures side of things the dow opening up by 17 points. the s&p just about flat. the nasdaq up by 9 on the treasury side of things, those ten-year u.s. treasury note yields are moving a bit ten-year note yield at 2.85% the two-year at 2.65%. in asia in the overnight session, we were seeing a bit of a reaction to some stuff happening on the afraid front. the nikkei in japan just about flat the hang seng up a quarter percent. the shanghai off by 0.1% in europe, as trading just kind of gets going, here a check of what's happening over. there the dax just about flat. the ftse 100 up by 0.25% the ftse mib off by 0.10%. here's a look at commodities and currencies oil on the wti side up about a quarter of a percent $69 there. the euro at 1689 gold at 1219 bitcoin is at 6915 >>> so let's talk more markets with bill stone, chief investment officer at stone investment partners. as we talk about the way markets are set up is there any reason why we should think this run cannot con

dominic chu is in the newsroom with all of the details.om. >> michelle, by now we've all heard the comparisons between u.s. companies and their respective chinese counterparts and those comparisons as imperfect as they are, alibaba is like the amazon of china and waymo is like the google of china and aichiyi is the netflix of china it had 67.1 million total subscribers and not everyone that uses the platform is a subscriber paying or otherwise the company's ipo document showed that as of the end of last year it had 421.1 million monthly active users around $126 million active users on devices. it had its public debut on the nasdaq and they got a lot of headlines after it priced its ipo at $18 and it dropped and it's up 60% sense then and it's been a volatile stock thus far in its short life. if you look at trading volumes which were relatively tame until june those volumes have taken off since then according to data from fact set, average daily volume over the last 30 days has shot up 30 million a year that was an average of 20 million sha

for "nightly business report," i'm dominic chu. >>> it is time to take a look at some of today's upgradesnd wn grades. barclays is downgrading shares of intel from overweight to equal weight. the firm sayinges theis behind intel and its server business and margin pressures could intensify next year. barclays shaved the price target 15% to $53. intel closed today at 49.30, down 3 cents. qualcomm is being raised at cowen from market perform to outperform. the analysts citing lower spending, and qualcomm's $30 billion buyback. cowen also raised the price targetmo 80 f 64. today qualcomm closed at 65.7al up a percent. >owen is also upping chip equipment maker, applied materials, from market perform to outperform. citing attractive valuation and a rebound on spending on its geiver fabrication equipment. the price t was raised slightly to $62 a share. shares finished at 49.4 up more than 1% today. >>> atlantic equities is upgrading comcast from neutral to overweight on fewer concerns about comcast's future, now that it has dropped that bid for 21st century fox assets. the price target was raise

i'm dominic chu. stocks are mixed the dow is off its session lows right now, it did fall by more than 100 points at one point this morning if the nasdaq holds on to the gains, it would be the sixth up day in a row for that particular index here tech and telecom are the sector leaders. materials and financials are lagging within the dow caterpillar, dow, dupont, worst performers, home depot and microsoft leading the way higher the retail in spotlight again today, williams sonoma, soaring on an earnings beat. wayfair as well, and l brands, seven year low after giving weaker than expected guidance. tyler? >> we begin with president trump with a warning about the stock market ayman javers has that story. >> new news here this hour as well in terms of this legal swirl around the president nbc news confirming that dow jones report from earlier in the hour that david packer, the ceo of american media, the company that publishes the national enquirer, has received immunity from federal prosecutors to talk to

for the decease and is holding a tournament in new jersey raising money for the foundation and dominic chu more hi,dome. >> hey, tyler. the idea that muscular dystrophy can be used as a positive force is something that morgan hoffman wants to hit home and that's why he puts this event together and getting dozens of business and sports leaders together for the event. he told us a little bit about his story. here is what he had to say about what he he feels about his story and what it means in the future. >> my story is i was diagnosed with muscular dystrophy in late 2016 and i didn't want it about myself i knew with the platform i can help so many other people. >> now it's something he at least is trying to spin in past way. they have raised a lot of money thousands from this event. about almost over a million dollars for the foundation rory mcilroy was drawn to the story as well. he is here here is what he had to say about why he showed up. >> i read his players tribune piece and was so moved by it i thought this is a guy delta pretty bad hand. but he is trying to make the most of it and h

i'm dominic chu. brian sullivan is off today.ere's how your money is setting up stock futures indicating the dow will open by 20 points to the upside relatively calm so far the s&p 500 is up by 1.5 and the nasdaq up 6 points first tesla's ceo elon musk rocking the investment world in one single tweet tweeting yesterday am considering taking tesla private at $420. funding secured. musk adding a final decision has not been made. his tweet comes on the back of a bombshell ft report that saudi arabia's sovereign wealth fund built a $2 billion stake in tesla. we'll get shareholder reaction in a second. first let's get to the man who blew the lid off of this story joining us is arash masudi. i remember when this came out yesterday. tell us what you know so far about this saudi investment in tesla. >> thanks. thanks for covering that the way you did yesterday. so i've been looking into this for about six to eight weeks i've been hearing things in the market that someone had taken a position in tesla. i was trying to piece it together we

cnbc's dominic chu joins me now. hey, dom, this is a first. >> this is a first. or months from now, when a "jeopardy" answer comes up, what is apple, the answer is a $1 trillion company. it's notable right now because it hit that mark and that was the high price so far today. from there it is now lower than that particular level. what this signals for apple is this is a company that's been reliant on selling smartphones like iphones for the bulk of the last decade. it's now moving more away from that although it still sells a lot of them. it's now growing its services businesses, that's itunes, the app store, things like that. that's now a $9.6 billion a quarter business for apple. a lot of investors are at least optimistic that that services business for apple can continue growing. that growth is what's propelling this valuation back up to the $1 trillion mark. the first ever company on the s&p to get there, ali. >> major markets often move in lockstep. for the last couple of days we've seen it do otherwise. you're seeing the nasdaq higher, tech stocks are highe

joining me now, cnbc's dominic chu. different assertions there. are they true? >> some of them are true and some of them may be a little bit more on the perhaps embellished side of things. there's no doubt the u.s. economy is doing much better than it was, say, during the depths of the financial crisis. it is also worth noting that the jobs market can continue its trajectory that started back in the obama administration in 2009. there are some signs of things developing that may not be as positive. we are seeing some slowdowns in certain key real estate markets. we know that interest rates are on the rise. certain those key markets out there are showing signs that new existing homes are selling at a slower pace. while there are yes economic signs of positive, there are certainly ones out there that need to be kind of remedied as well. >> meantime, the fed chair, jerome powell, speaking next hour. monday, trump said he was not thrilled with the fed under powell because of the raising of interest rates. he says it can hurt the economy. the president's comments, a

. >> dominic chu. >> let's kick some of these around amd. i will continue to give josh brown the credit he deserves on that he said you can still buy the stock even when up 100% and it's up another 30% or so since he said that. what about some of these other names on here. >> i'll start with flowserve, i'm the industrials guru on this desk unfortunately or fortunately flowserve is a competitor to emerson electric, trading at a 15% discount to emmerson and for good reason, execution issues and management problems and that sort of thing. the second quarter was an inflection in terms of new orders they were the best we've seen since 2015, the first quarter, so i think that if you believe energy is going to continue to stay strong in terms of the oil prices and activity -- >> the energy has lagged as a sector. >> but they need a higher oil price. right. oil price and that leads to activity these guys helped that activity, right. they make the pumps and valves and that sort of thing you want a healthy energy market you do have a healthy energy ma

cnbc's dominic chu, thank you very much for being with us.reciate your insight. >>> still ahead, rudy giuliani keeps on attacking robert mueller. in an interview with the "new york times." a new polling shows one of his arguments just isn't accurate and, my gosh, seems that more and more americans are backing what robert mueller's doing and believing that the president is lying. we'll be right back with those numbers when "morning joe" returns. i get it all the time. "have you lost weight?" of course i have- ever since i started renting from national. because national lets me lose the wait at the counter... ...and choose any car in the aisle. and i don't wait when i return, thanks to drop & go. at national, i can lose the wait...and keep it off. looking good, patrick. i know. (vo) go national. go like a pro. it's a revolution in sleep. the new sleep number 360 smart bed is on sale now, from $899, during sleep number's 'biggest sale of the year'. it senses your movement, and automatically adjusts to keep you both comfortable. it even helps wit

. >>> time for a closer look at oil prices dominic chu is at the commodity desk. >> oil prices are upings don't look exactly positive we have on pace for a third week in a row for brent, wti is on pace for seven weeks of straight losses, as the fears of global economic growth weigh in, and ampling supplies of cruel, they sentiment dampeners. you add to that a bigger-picture trend of dollar strength, and as for the impact on the stock market, energy by far the worst-performing sector in the s&p 500, down this week by nearly 4%, entering that's trade, and we can see the markets are starting to slip a bit. back over to you, sara >> having a little comeback today. as you say, a rough week for energy overall dom, thanks. >>> coming up taking a well-known ice cream brand to a new level. we'll talk to the new ceo of ben & jerry's. "squawk on the street" will be right back with the dow down five points. >>> what a week it's been for retail and that continues today, some of the best s&p gains of the moment, "squawk on the street" continues in a moment. dow is down 14 so we can fit them into ou

and speaking of the rest of the world, we've seen a huge move just in the last hour when dominic chu mentioned that about a 3% move in the emerging markets and 2% move in china etfs $160 billion of new money in etfs so far this year, but the iemg has $10 billion year to date, $2 billion just in the last month and it's got a pretty big move for getting market representation for only 14 basis points if talks improve this might be the link everyone is looking for as far as valuations getting better, markets getting better overseas, especially emerging markets in china >> thanks, everybody >>> still ahead on "the closing bell," a hedge fund billionaire says wall street critics are suffering from a bad case of buy back derangement syndrome. his case for why stock buy backs could be viewed as a positive ahead. >>> plus last month president trump criticized the federal reserve. remember this? >> i've been a very good man in the fed. i don't necessarily agree with it because he's raising interest rates. >> those words surely will be a hot topic of discussion at next week's fed gathering we'l

. >>> let's get to dominic chu for the market hi, dom. >> courtney one sector from the s&p 500 in negativeconsumer staples but the one to focus on today has been health care it hasn't been one of the leader leaders. but it hit a record high from earlier this year back in january opinion the snch 500 expired car hit a record high. up by a third of a%. look at these names. they have been upside standouts. illumina up side. cycle forward to some other names. united health care and others as well some names, tyler, big moves in upside trade today. >> back to you. >> thank you very much it has been of course ulysses been sleeping a busy week in washington long time trump attorney michael cohen pleading guilty while paul manafort was found guilty by a jury on various charges. the president also lashing out against his attorney general and the media. and as we get closer to november, will the president shift his focus to the kmie and trade as he looks for a win ahead of the midterm elections joining us to discuss all this and more is nbc news and msnbc political analyst hue hewitt so much to talk

dominic chu has the numbers and how it is impacting the market.ars it did have a big impact on the overall market. >> much more so than turkey. china makes up more than a third of the index. a number of these major chinese index stocks are at the middle of trading action. tencent falling due in part to the numbers. the tencent drop just adds fuel to a lot of the down side. check out some of these names. alibaba perhaps the most important one because it is roughly down about 21% from june record. many say it is the blue chip of the chinese internet names, the amazon or alphabet of the complex. xiaomi down 22% from the high we saw. baidu is down 23%. shares moving to the down side. tencent 27% below its high. huya has lost around half of its value since its post ipo highs earlier this year. china large cap etf, that group of stocks is down more than three percent on pace for the worst day since late march and that is entering what some call bear market territory down 23%. another etf that tracks chinese internet names is the kwee. and take a look at

dominic chu looking at strength and energy this week hi, dom. >> the s&p and 2900 mark for the firsthich translates into a 8 to 9% gain for large cap indext over the course of the last week best performing, today's top performing sectors like tech and energy doing a lot of heavy lifting. these are the two best performing sectors in a one week span as well that spider technology etf, xlk is an outperformer on day as is the spdr energy etf, xle within the energy sector, it's the oil services companies outperforming the broader sector on the day, at least just today, the oil services etf, oih is doing better than the others xop. if you look on a year to date basis it is the xop following oil prices higher and that is the driving force behind the performance in the broader energy sector overall. today it's the oil services but over the course of the last year to date period it has been those explorers and producers drive ag lot of the energy gains. back over to you. >> domesti, thank you. let's get to sue herera for a news update. >> good morning, morgan. here's what's happening at this

. >> harvey, stay with us we want to get to dominic chu for breaking news. elon musk tweeting again dom. >> all right so he has been responding to other people via tweet after the initial tweet about a possible take private transaction at $420 a share. this latest one was in response to a tweet from someone who said that they feel like they would miss out on the upside for those investors who have been around a while to which elon musk tweeted back as you can see there. my hope is all current investors remain with tesla even if we're private. even if we're private. would create special purpose fund enabling anyone to stay with tesla, already do thisfy delts. s spacex investment. so maybe to tyler's point prior, this idea that he is maybe not denying but perhaps even more so hinting at this idea that is now coming out we should say right now that tesla shares are halted as of this moment for news pending so tesla may be looking to make some kind of a statement here. but again a trading halt right now. that's the latest on the tesla shares as you can see halte

dominic chu spent the weekend pondering that topic. >> apple is arguably the most important stock in u.s. market publicly traded universe because it has such huge waiting for the market cap weighted indices like the s&p 50 on and the nasdaq and it kaerps the most weight. let's put in perspective first of all given the weighting we are about 4.2% weighted for apple in the s&p 500. microsoft in second place at 3.5% alphabet the parent company of dw google 3.1% amazing about the same range and facebook a little far behind but still almost at 2% weighting in terms of apple being the biggest in the s&p 500 let's put it in more perspective. if you look at over time, the most heavily weighted stocks in the s&p 500, howard slr blat at s&p dow jones indices looked back to 1980 at the year end waitings for sout will ibm big blue with the biggest weighting in the snch 500 on a relatively basis in 1985 where it was nearly 6.5% of the overall s&p 500 remember 4.2% for apple today. at&t at 1 pount 9815.5% np exxonmobil was a 5% weighting then microsoft back near the height of.com nearly a 5% weigh

dominic chu joins us from the wall of worry.e don't have enough room for all the bricks but the bull/bear debate back on the front burner with stocks trying to set record highs again. we hit the levels. all of the 401(k)s are better off. they are great but it's worth looking at the bear argument so they don't catch you off guard in case coming to fruition we are talking about economist david rosenberg, he has five reasons why the bug market may end sometime soon. first of all he looks at the job market the job market is there. there aren't enough skilled workers out there to fill the open jobs we've got. it means that job market has pretty much stalled out a bit. second we have a tighter labor market which means higher wages eventually and while that does sound good for all of us that price inflation associated with the higher tariffs couple with higher wages and conditions for a possibly tighter policy from the fed could be tapping the brakes on the economy. third slowing growth of money supply, specifically the real growth rat

dominic chu is looking at other companies. we call them the mega stores or something like that, dom the corporate stores or something like that. >> the indominous rex. that trillion dollar mark like you said could be attained pretty soon if you take a look at some of these companies they are the biggest ones in america after apple and we want to highlight them because it puts amazon scarily in second place. nearly $900 billion in market cap so about a 12% gain needed alphabet a 17% gain needed there and it hits that mark. microsoft about 21% and facebook given all of its woes over the past couple of weeks here needs in essence a double to get to that trillion dollar mark. you can see the trajectory of amazon.com shares over the last year and past few years, far and above that trend line for apple. it could get there pretty quickly if you look at that measure. if you're looking for specific numbers, when will it get there? take a look at these the share price for it to hit that trillion dollar mark is a little over $2,050 per s

dominic chu has answers. >> so there are.tom line here is turkey is a very small portion of the msci emerging markets index. only about three quarters of 1% waiting and that total index who are the hershavy weights. let's take a look at these according to msci and blackrock, these are the countries that have the most weighting that index. china, a massive part of that particular emerging markets index. south korea at 15%, taiwan at 12%. india is 9%. you heard seema refer to what's happened with the rupee. south africa, it's a 7% weighting as a country in the index. take a look because if you look at the overall etf country wise that tracks these names, where you have the emerging markets index in total up a little bit today. see the down trend firmly in place since the beginning of this year. also take a look at these three countries in particular. they are the ones over the last week from a country perspective that have among the worst performances the msci turkey over the last year 53% down. the msci indonesian index, 16% t

let's get to dominic chu. >> we are looking at shares of oracle near session lows off by almost a percentis a cnbc story citing stories that amazon is looking to transition from oracle products. this has been a process that has been reportedly in works for the past number of years but it will come to a head. we have a timeline on it according to sources familiar. we are watching those shares pretty closely. oracle shares are up about maybe a half a percent for the year to date period, down five percent for 12 months. we did reach out to both companies and they both declined comment for the story. >> thank you very much. check please is next. you always pay your insurance on time. tap one little bumper and up go your rates. what good is your insurance if you get punished for using it? news flash: nobody's perfect. for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident. switch and you could save $782 on home and auto insurance. call for a free quote today. liberty mutual insurance. ♪ liberty. liberty. liberty. liberty. ♪ >>> welcome back to "

. >>> let's turn now to business before the bell and dominic chu. good morning.can resolve the trade tensions that set the world on edge. >> the officials said the meetings will take place later on this month. as of earlier on this morning, the treasury department had not made any comment on this particular announcement. the timing is still pretty un clear. what we know is that august 23rd is when the next round of u.s. tariffs were going to take place. the last formal round of trade talks happened in beijing. that was in early june. we'll see if the white house weighs in on that. that possibility of trade talks resuming is being felt immediately in the markets. the dow jones industrial average will be set to open around 240 points. any possible developments on the trade front are potentially big market catalysts. for now, that positivity is over-shadowing continuing situations with turkey and other emerges markets, as well. on the corporate front, u.s. regulators are looking deeper into tesla or elon musk. the electric carmaker has been satinaed by the u.s. secu

for more on this, let's bring in dominic chu. is this a real thing?ng. but there's a reason why this is bringing up all kinds of debate about whether this is worse or better for everyday investors. right now, krn has reached out to thor securities and exchange commission. this takes away some of the reporting requirement that companies have to investors. they have to right now, every quarter, tell you how much money they made, how much stuff they sold, what their plans are for the future. if they only have to see it twooit twice a year, that could save company's costs. but certainly something we're watching right now. but it goes in that spirit of deregulation that president trump has reached about ever since the campaign trail. speaking of deals and president trump, he obviously wants a bigger and better deal in terms of trade with china. derg a cabinet meeting yesterday, he said we are talking to china. they are very much wanting to talk. he said the only acceptable agreement is the one that treats america fairley. that next.round of trade talks is