kayla? >> reporter: kelly, it's a make or break week for trade talks in china. raising in the stakes and the end date for this friday to make a deal for the biggest to see rates more than double going too slowly and trying to renegotiate. given the new demands by donald trump, china is weighing whether to pull out of talks as it did under similar circumstances last september. and progress for a deal and president xi but the foreign ministry said they're looking for more information mick mulvaney and larry kudlow and mike pence with the possibility the deal won't work wut outbut cl out but more in the coming days. >> the president claiming that tariffs are actually good for the u.s. tweeting that they are, quote, partially responsible for the strong u.s. economy. let's bring in pimco, managing director hamilton plays strategy partner and our own steve liesman but, steve, we start with you to do some fact or fiction, sussing out of the president's comments. >> off of truthfulness it's just way

kayla tausche is breaking these headlines for you. kayla? >> reporter: kelly, we just received the joint statement between the u.s. and canada on the removal of the tariffs expected to happen within the next two days. in response, canada will remove its retaliation against the u.s. which has been in place for close to a year. they will drop all lawsuits at the world trade organization over the tariffs and open a new cons consultative process if they realize it's becoming a bigger issue in the future, the u.s. has the right to put new tariffs in place this is a significant cease-fire between the u.s. and canada, which have been trying to figure out how to move the usmca forward in the respective legislatures in the countries. we're not only expecting remarks from president trump momentarily where he's expected to address this issue we're also expecting remarks from canada's prime minister justin trudeau that will take place, flanked by steel workers at a steel plant in ontario. the same location, we might add, where canada announced retaliati

let's get to kayla tausche with the latest kayla. >> morgan, we've been talking about autos and steel and aluminum all throughout the day but i want to bring you an update on china where it appears negotiations between the u.s. and china have stalled with both sides digging in after disagreeing earlier this month on the deal text two sources briefed on the status of talks said the scheduling of the next round of negotiations is in flux because it's not clear what the two sides would be negotiating china hans signaled it's willing to revisit past promises on which it reneged in early may despite showing up for talks in washington last week the u.s. delegation has been invited to beijing, which earlier this week treasury secretary steven mnuchin appeared open to accepting but now sources say scheduling discussions have been put on hold essentially since the trump administration ratcheted up its scrutiny of chinese telecon companies seen as a shoot across the bow to beijing we reached out to the white house, the u.s. trade representative and treasury for comment. we did not get one befor

valerie says she decided to take kayla to dr.after seeing one of his billboards touting sinus surgery is a cure for headaches. >> i took her to his office. they did an immediate ct scan and said she had a deviated septum, polyps, and he could make her headache free for the rest of her life if she had immediate surgery. >> how quickly did it happen? >> within two weeks i believe. >> and how is she? >> the headaches never stopped. the light sensitivity actually became worse. >> valerie says it wasn't until she took kayla to see specialists at the university of chicago medical center that she finally discovered the cause of kayla's misery. >> and they did a ct scan as well of her head and they told us that evening that there was a tumor there. >> and what was that night like? >> that was the worst nate of my life. >> though the tumor turned out to be noncancerous it was growing and surgeons told the thomases kayla would need immediate brain surgery to reduce the pressure in her head. >> kayla, do you understand what the doctor said?

and china escalate kayla tausche is in washington with a busy few days on your beat, kayla. >> scott, one of the worst weeks for stocks all year coming off of whiplash on these trade talks, but ending with a rather sanguine set of staples from president bush on twitter after a week where he weighed in in a very vitriolic way and he said he held candid and constructive conversations, his administration did with china and the delegation led with the vice premier and the relationship between president xi and myself remains a very strong one and conversations into the future will continue and he doesn't say exactly when those talks will resume and up until now we don't know when those talks will be held and safe to say it won't be next week and the treasury secretary will be testifying on wednesday on the treasury department's budget and of course, normally he and the trade representative ambassador lighthizer have been the ones to travel to beijing, but certainly a rather calm end and conclusion to this week where the president did increase tariffs last night, more than doubling them on

kayla tausche with the latest. hi, kayla. >> reporter: hi, kelly we're trying to parse exactly what that comment from the treasury secretary meant and exactly what they conveyed the global times that is a state affiliated newspaper in china and the editor tweeting this saying, i learned from authoritative source that china trade talks did not break down both sides think the talks are constructive and will continue consultations. the two sides agree to meet again in beijing in the future so that is the editor of this state affiliated global times in china. now it's unclear where the president stands on this he said yesterday he would be speaking with president xi jinping and unclear whether that call happened last night but the tariffs did get raised at midnight we expect to hear from the president later today at an event at 4:15 where he's honoring military mothers with the first lady he is tweeting this afternoon but about the disaster relief bill and nothing, again, so far on trade since the tweet storm from earl

mike santoli here to break down the move that got started a few minutes ago when we got word out of kaylasche's reporting as well that it looks like we're going to delay any decision on auto tariffs for europe. happy with -- >> i think for as long as a little bit of a twitch, yes, it makes sense. what i like to look at is what works when you get one of these moves. we, obviously, are just reclaiming that last hour of losses yesterday, not even coming close to doing that just yet, but it's big tech again it's not -- it wasn't the car stocks driving us higher at this point. it was basically we like when we're in the buying mood, when we think the market has had enough pain for the short term it tends to be the large growth stocks that's offsetting weakness in the banks today. that to me is a little bit of a tell of where maybe the leadership still has to be >> so auto tariffs were worth 150 points in the dow, but i'm still trying to figure out what is this crummy economic data out of china and the u.s. mean for us i mean it field feeds into the global deflationary story again. it feeds into

she saw me, and she was shocked, and i just, like, my world was complete. >> reporter: as for kayla -didn't expect it at all. i was really excited for, like, the first three minutes, and then i was, like, okay. let's get off stage. >> reporter: a magical moment on stage only a mother could write. [ applause ] >> and we thank sergeant tina bailey for her service, and for sharing her family's story. we thank you for watching. i'm tom llamas in new york. "gma" and "this week" in the morning. i'll see you back here tomorrow night. have a great evening. good night. you back here tomorrow night. ♪ >>> tonight, a soggy saturday in the bay area causes trees to come down and we're not done with the rain. >> it was kind of scary, the first time seeing a shotgun right in front of you. >> a former 49ers coach is being hailed as a hero for stopping a student and potential mass shooting at a school. >>> and in the middle of a schwarzenegger is attacked. >> from abc7. >> it is a wet weekend in the bay area. live doppler 7 lit up green and yellow making for a soggy saturday night and the rain is far

>> and, kayla, even as you are reporting the dow is down more than 700 points. you mentioned soybeans and how hard they are hit. the list of tariffs that china is targeting includes agric agricultural products. do you think that is an intent to hurt the president's base >> i do. i think it is also an intent to perhaps exact how much pain as possible because part of what the deal itself is going to do is it's going to see china make some pretty vast agricultural purchases and also change the mix of some of the products that it was putting tariffs on to exclude gricultural products so, it knows from the course of the negotiations that the administration cares deeply about how the pharma community is feeling and reeling over the last year financially from the fallout from this and china knows from its conversations with the u.s. that that is an area where it can exact the most pain >> one more inside baseball question for you i was struck and we know larry kudlow so well when he's asked and point blank, look, won't these tariffs hurt the u.s. and china he has to sa

>> thank you, kayla. kayla tausche in washington. next is michael froman, u.s. representative thanks for coming back this june anniversary of tiananmen square seems like it could be important how do you think, if at all, it changes the chinese stance toward trying to make any sort of a deal with the u.s.? >> it's an important date in their history and all sort of domestic politics about nationalism and asserting themselves we see coming out but over the long run, we need to be looking at what's going to happen with the u.s. and chinese economies. are we going to continue to be interconnected as we have been and we see that playing out in the rare earth discussion or a decoupling in terms of trade and technology that's the bigger, probably more substantial issue than when we get a new trade agreement in the short run. >> that's an interesting point, michael. as the trade war goes on, working around for six months so as not to impact their first quarter results. do you foresee this decoupling becomes much more substantial and that power shifts away from china econ

kayla tausche has the very latest kayla? >> reporter: melissa, president trump is leaving his options open with china. he both praised liu he and praised china's president who sent what he called a beautiful letter but hammering china for breaking the deal and not only hiking tariffs this week but targeting the rest of china's imports too. >> it will be $325 billion at 25% and we're starting that paperwork today. so we'll see but you know what? as president of our country, i've got to do something about it and as president of our great country, we're going to be taking in more money than we've ever taken in. >> reporter: administration officials tell me that president trump thinks the federal reserve is hurting the u.s. economy more than tariffs ever will but a steel stomach for tariffs and repeatedly told ambassador lighthizer, if there's not a good deal, he wouldwalk away perhaps now that this has spilled out into the public, the administration has been on the record about exactly what china did. they can hold them to acco

kayla tausche takes a look at where we epstand. >>orter: in the weeks after the u.s. and china talked tradee face to face, rift has widened. president trump doubling down blaming china for reneging. >> we had a very strong deal. we had a good deal and at the end they changed . i said, that's okay. we're going to tariff their products and we p a 25% tariff on their products. >> reporter: china's foreignai ministry that deal never existed. the u.s. has extravagant expectations. the trade now threate geopolitical issues. a u.s. warship sailing near chinese areas. korean war ng the era films echoed the current era. r an's foreign minis suggesting to china the countries could team up against washingtonphod the 2015 nuclear deal. cretary of state mike pompeo and huang ye spoke over the weekend. they said won warned the u.s. not to go too far in harming interests. google suspended android f servicm new had a way devices after the u.s. put them on a black list. congress can ban any use by huawei to disrupt rural networks. u.s. companies impacted by the trade war are cutting c

does it matter, kayla, that the talks ended so soon? >> reporter: four hours of talks last night, two hours of talks today before the u.s. team bid good-bye to the chinese officials and then we saw the top two u.s. officials, the trade representative and the treasury secretary head over to the white house ostensibly to brief the president and his economic team over there and here was the summary from the treasury secretary on his way out. >> we are done >> reporter: and what were the results? >> they were constructive discussions between both parties. that's all we're going to say. thank you. >> reporter: steven mnuchin using an adjective he's used nearly every round to describe the trade talks. what will president trump and president xi do? the vice premier said he came here to the u.s. under pressure and also communicated that it really was up to the leader in china to make a decision how to proceed. >> okay, kayla, thanks i thought we'd hear from him directly kayla, thanks very much. kayla tausche with the tick tock there. >>> marx g

>> kayla, thank you. kayla tausche in washington. joining us now to talk about what all of this means for the markets is senior portfolio manager at ubs financial services charlie barinskoy is the vice chairman of ariel investment and ace l. levine from bmi mellon joining us for the hour how do you see it? what do you do on the market >> what's interesting is it looks like a classic tit for tat strategy and game theory problem here because you have the u.s. putting on tariffs, going slowly on whether or not we're going to go with the 325, 25% on the next 325. and china going slowly signaling retaliation but a stepped retaliation. so not overly done and signaling a willingness to talk i'll say this. i think this goes longer than june i think the market has not priced in this going longer than june and today we're feeling it and i don't think we're done yet >> how much -- when you talk about getting priced in, how much more are you talking about? we're almost 5% now from the record highs on the s&p. >> right let's put it this way. the

sara wilf >> kayla, thank you. joining us with more on today's market rebound and what to do from here, alec young from ftse russell and serat sefi from douglas c. lane and associates joins us it's a mini rebound. we're making back about half of what we lost yesterday how does it feel to you? >> i think there is some meat on the bones. so i feel okay about it because i think there is some substance. we've certainly been whipped around the last few days but i think the key, investors just needed to believe that the talks haven't completely collapsed, that tar talking and president trump -- >> they're talking but they're also taxing, new tariffs >> they are. but tariffing when you're not talking is worse than tariffing when you're still talk and president trump confirmed a meeting with president xi at the g20 june 20th. so i think as long as people feel that way and as leader msh connell mentioned, as long as these negotiations as difficult as theymay be get to us a plac where the current tariffs are lifted and no ne

kayla tausche in washington with the latest kayla, let's start with you. >> it's unclear where things will land. president trump is keeping all of his options open, saying he'll start paperwork targeting every dollar of chinese imports with tariffs and then china, as you just heard, broke the deal. but he also praised its leaders and said there could be a positive outcome this week >> i very much like china. the vice premier's coming here today. we were getting very close to a deal then they started to renegotiate the deal we can't have that i think it will be a very strong day, frankly but we'll see. we'll see. their idea to come back. >> the vice premier's presence it's said shows china is committed to negotiating but his credibility is damaged and lu is not traveling as special envoy for these talks. special envoy that would give him the ability to negotiate on xi's behalf. a call between the two leaders tonight could prove fruitful, but in a time where the market is trying to prognosticate exactly what will happen, wilf, it's really impossible to do that at this stage >> kayla, th

kayla, let's remind our audience, tariffs are paid by importers, not the mexican companies. so the importers would pass the costs to the american consumers. help us understand the impact. >> reporter: yes, and consumers would feel that when they're going out to buy a new car. vehicles are the top item that companies import from mexico that they make there and then send across the border. it would have a dramatic impact on consumers if this were to go through. as hans notes, this isn't a done deal yet. the white house is allowing a slight grace people for mexico to come to the table and make a proposal that it sees as sufficient, that we don't know exactly what that is. economists are having a hard time figuring out exactly what the impact on consumers would be because they don't know if this is goeing to go into effect and at what point the tariffs would rest. they could potentially about up to 25% on october 1st if this situation still isn't resolved. those two numbers would have a dramatically different impact on the market. if it's just a 5% increase, companies are unlike

kayla tausche in washington with more on that kayla? >> reporter: an event commemorating the country's 1930s civil war known as the long march, president xi jinping told a cheering crowd, reportedly, we're embarking on a new long march and we must start all over again the company's top trade adviser, a company that produces rare earth materials, next front in the trade war. go into electronics and automobiles produced here in the u.s. and the stock of the company that xi toured rose on a signal that china would move to protect those domestic companies. meanwhile, president trump at a rally last night reiterated his belief tariffs work and his respect for president xi said on may 9th he expected to have a call with his chinese counterpart. no word on whether that has taken place. but the u.s. is moving to help tech firms and farmers affected by these tensions. the commerce department rolling out a 90-day grace period for the huawei ban and then there are reports of a new package of aid to u.s. farmers that could be rolled out this week.

kayla tausche starts us off tonight in washington. .the trump administration's multi-faceted trade sites and stalling on the other. today brought news house would seal aminum in mexico. or that deal is going to be a fantastic deal our country and hopefully congress will appro approve it quicy. >> it will be in the next 48 hours that ends retaliation on products like beer kegs, whisky and pork in hopes of clearing the path for the trade agreement. canadian prime minister justin trudeau expressedfi cnce. >> now that we've had a full lift on these tariffs we are going to work with the united states on timing for ratification, but we are very optimistic we will be able to move forward. w >> tte house shelving a tariff, ts time on automobiles with the decision delayed up to six months while itegiates with europe and japan, but trump hasn't ruled out those charges entirely. >> they take udvantage of on trade. it's not fair. we lost th80 billion wit european union. >> republican lawmakers who have stopped to persuade the president against tari

valerie said she decided to take kayla to dr.ting sinus surgery as a cure for headaches. >> i took her to his office. they did a cat scan and they said she had a deviated septum and polyps and he could make her headache free for the rest of her life if she had immediate surgery. >> how quickly did it happen? >> within two weeks. >> how is she? >> valerie says it wasn't until she took kayla to see specialists at the university of chicago medical center that she finally discovered the cause of kayla's misery. >> they did a cat scan as well of her head, and they told us that evening that there was a tumor there. >> and what was that night like? >> that was the worst night of my life. >> though the tumor turned out to be noncancerous, it was growing. surgeons told the thomases kayla would need immediate brain surgery to reduce the pressure in her head. >> and kayla, do you understand what the doctor said? >> i didn't understand most of it, but some of it like i would have to have surgery and then how i would have to be taken care of

kayla tausche. we've seen the u.s. and chinese markets hit this week. the etf attracts large-cap china stocks down 7% and the s&p 500 down 3%. so if a deal doesn't get reached who has more to lose is this the right metric to look at i ng president trump looks at it and says okay, we're only down 3% and the chinese market is down 7%. we are winning by 2 1/2 times and i can do that math in my head and maybe he's right. i don't think so the chinese are looking at a much longer picture and we look in terms of weeks and they look in terms of decades and i don't think the chinese have any interest in making a deal any time soon and they have tweets saying they're close, we're not close and the market goes up and down this is now 15 months after the fact give or take when it started in march 2018 and me, personally, i don't think we're any closer now than when we were 15 months ago. >> without getting overly dramatic on this which i never do i do think if we really want the global economy to be strong or the implications for the u.s. economy are such that if y

kayla, suddenly the president is saying three or four weeks. maybe we're going to get a deal with china. where on earth is this coming from? >> well, i think this is coming from the idea that it's going to take about three weeks for the increase in tariffs that he put in effect last week to actually hit u.s. companies when goods from china get here at the end of the month. and then when china announced the retaliation yesterday, it said it was going to put a tariff of 25% on a host of goods and raise tariffs on $60 billion in goods. it said that wasn't going to take effect until june 1st. so there's this window of good will between the sides. we expect that the treasury secretary and the trade representative will go back to beijing if not next week, the following week and there will be some movement toward a deal to try to get the talks back on track. the president has a history of moving the goal post and saying we're going to give it two weeks, three weeks, four weeks. at least in this case there is some grounding for the three or four week t

kayla tausche joins us with more on that. kayla?hey, wilf the official readout from a truncated round of trade talks came via the president's twitter account where he had an adjective for each of his top trade officials. constructive, which is the favorite word of the treasury secretary. to describe this round of negotiations during heightened tensions between the u.s. and china. he says that conversations into the future will continue that's an undetermined time frame there. it is expected that the next trip will be by the u.s. delegation over to beige i saw ambassador lighthizer just after this statement came out. i asked him when they would be heading over there he declined to comment and the treasury secretary told our eamon javers that there were no talks planned as of yet so we will wait and see compactly when this next round continues. i do know from sources who are briefed on these talks that it's expected to be a matter of weeks before the president greenlights this potentially massive new round of tariffs on the remaining

i'm kayla tausche in washington. >>> we've been reporting how tariffs are impacting ifferent businesses today we take you to different parts of the country where the trade tenons are definitely being felt. contessa brewer is with the lobstermen in massachusetts and diana olick reports on the home remodeling business in shington and we begin with jane wells at ground zero for chine import, the port of los angeles. >> yeah, you know, a funny thing is happening in th trade war between the u.s. and china, companies aorking around the tariffs. how? >> the chinese factorywn might a production site in vietnam and they simply move the production from china totn v and the chinese factory still makes the profit, but the u.s. impoer is t taxed because the goods are coming out of vietnam. >> okay. let me throw out new numbers in this trade war. according to a congressional group which monitors u.s.-china trade during theirst quarter, u.s. exports to china fell almo 20% but check this out. at the sam utime overall,. exports grew t.3%. hina is not buying as much of our stuff someones. >> we are seein

kayla tausche starts us off tonight from washington. >> in a series o meetings in washington today tohore up the prospects for president trump's signature trade deal, the usmca. robert lig hhizer meetinge on capitol hill with house leadership after hosting canada's foreign minister where aluminum tariffs were on the top of the agenda. they've been soar f been the main roadblock to the deal. the u.s. would float a proposal chart a path forward. treasury secretary stephen mnuchin said all four companies were close to a deal. >> i think we are close to annd undersg with mexico and canada. i've spoken to the finance ministers and ambassadors lighthizer i leading the effort on this, but i can assure you that it is a priority of ours. >> chrystia freeland said she wouldn't estimate how long it >> we don't believe in negotiations. it's never wise to talk about time lines to predict the future? in the meantime t, the white hoe faces a decision whether to impose tariffs, it chose tohe delayecision by up to six months as it keeps negotiations open with canada, mexico, europe and japan, all of w

guys >> all right, kayla, that's big news the market on a net basis likes the delay.positive. 2836 going to check on where some of the other major averages stand dow narrowing its losses now to 28 after opening i think session low was down 170 plus. we're back after this. ♪ ♪♪ ♪♪ ♪♪ feel that? that's the beat of global markets, the rhythm of the world. but to us, it's the pace of tomorrow. with ingenuity, technologies, and markets expertise we create the possible. and when you do that, you don't chase the pace of tomorrow. you set it. nasdaq. rewrite tomorrow. >>> stocks were down sharply at the open, coming off the lows, s&p popping into positive territory. headline crossing as kayla tausche brought us that the administration plans to delay the auto import tariffs. it is also having a move in the bond market, the yields, lower all day, lower off the weaker retail sales report,he fact thap administration is going to delay the auto import tariffs. again, this is a much broader issue than just china, would affect our european trading partners, a lot of cars from europe,

kayla tausche reports. >> talks with china re-opened tonight after the dispute that the language had become public and vitriolic. president trum l isving his options open, praising chinese leadership, but scolding them for backing off their commitments. >> i have no idea what's going to happen. i did get last nighty a v beautiful letter from president xi, let's work together. let's see if we can get something done and they re-negotiated the deal. >> hiking tariffs on $200 billion in chinese goods from 10% to 25% effective at 12:01 a.m. and threatening the rest of china's imports, too. >> it will be $325 billion at 25% and we're starting thatpa rwork today. >> trade isn't the only area the trump administration is rssping up pree, it denied china mobile license to do business in the u.s. and is a lookingt revoking licenses granted to chinese-owned carriers. the security of our next generation networks cannot be an afterthought. it has to be a top-level priority now. >> tensions simmer, this could be areakthrough or a breakup of the world's two biggest economic powers battling over trad

guys >> all right, kayla, thank you kayla tausche in washington.t of the u.s./china tariffs on retail, let's welcome matt shea, national retail federation president and ceo. matt, always good to speak with you. >> melissa, good morning. >> how are your members thinking about this tariff increase there was a bank of america merrill lynch note out saying that a 25% tariff on apparel, for instance, would cause retailers to raise price by about 2.3%, just to maintain gross margins. 2.3% doesn't sound like a lot, but i'm sure to a lot of consumers, it could really make a difference in terms of their buying patterns. >> yeah, well, certainly, we know that we're operating on very thin margins to begin with in the retail industry, so it's very, very competitive out there. consumers are still very, very value-oriented i think to put it in perspective, there's wide agreement with the president and the administration on the overall objectives we certainly agree that we need to reset in a very fundamental way with our trading partners in china. but we just hav

back to you. >> kayla, thank you very much. boy, getting ready to storm there behind kayla like a tornado coming. >>> the dow having posted its longest weekly losing streak in eight years. down now for five straight weeks barring a strong rally over the final four trading days of may the three major averages have their first negative month of may since 2012 as well as the first negative month of 2019 more declines to come or should we look on the brighter side should we set up for a summer rally? cnbc contributor michael farr. farr, miller and washington ceo and oliver pursh with bruder man asset management is it brooder or bruder? >> broouderman. >> do you think it's a time to dip cautiously into the market or play more defense >> absolutely. and i'm 100% unanimous on that, tyler. look, there's always something out there that you can buy this market has pulled back maybe 4% off of the highs from april 23rd overall, we're still up over 20% since the lows that we made in the big pullback in december this isn't awful we made new

kayla tausche is going to have much more. "squawk on the street" is coming up now >>> good monday morning, i am carl quintanilla with jim cramer and david faber. another monday, you just heard the chinese announced retaliatory tariffs on 60 billion u.s. goods europe is right across the board. that ten-year approaching two for one. our road map is going to begin with trade tensions taking stocks todayme china retaliates >> uber's big suffer, suffering the first dollars loss and shares are falling again in the market was the fix in 44 states against teva and other drug company accusing them to inflate drug prices. china is striking back against the u.s. saying it will raise tariffs of $60 billion of u.s. goods beginning june 1st the president warns china not to retaliate. "i say openly to president xi that china will be hurt very badly if you don't make a deal because companies will be forced to leave china for other countries, you had a great deal and almost completed and you backed out." jim, that confirms some of the reporti

>> kayla, on that real quick, what changed between the rumors or the source information that we were within days of a deal being announced later this week and all of a sudden the president last night saying, hey, i'm not pleased at all with how things are going >> well, two things, kelly first of all, some of the change in tack happened in beijing last week and the information that we had reported was the expectation. the rough timeline for how things were supposed to play out. administration officials had expected that at the end of the vice premier's visit this week, this friday was the date that was essentially circled on the calendar for that deal in principal. they had called the vice premier the closer and they expected he would be the one that would come here and close this deal things changed last week in beijing, once the top officials returned to washington, briefed the president and expressed some concern about some of these commitments that china started to walk back there is, of course, also a difference in opinion among the president's advisors and which advice he choos

>> all right kayla, thank you kayla tausche in washington. so no deal with china. thing it does from the market's perspective it creates that political uncertainty and the fighting back and forth of the usmca and wharf we want to call it it's certainly not a positive and at best it's a negative. >> a slew of retailers out reporting after the bell, gap, ulta, costco, let's go to courtney reagan at headquarters. >> costco shares have been flat to slightly down after hours here after holding relatively steady for the last two months they did surge following the previous earnings report and haven't done much since and earnings are stronger than expected and revenues in line and the wholesale club posting strong comps more than 5.5% and the u.s. division the strongest. membership fees $576 million, a bit below estimates and above last year and there was a negative drag from foreign exchange and membership renewal rates still strong at 95% from the u.s. and canada. chief financial officer richard gallanti spoke about tariffs before going to questions and answers. >> as y

let's get straight to the latest on the new tariff threat to mexico kayla tausche has been lighting up the news wires all day and just got off the phone >> reporter: we're trying to learn exactly how the policy which was hastily rolled out yesterday afternoon, how it came to be and where the support and where the opposition was from within the white house and beyond we've learned from our sources including one close to the white house, one source briefed on the matter and senior administration official that the treasury sect and the trade representative boast b ambassador bob lighthizer were opposed to the mexican tariffs i received a call from jeff emerson who tells me on the record that ambassador lighthizer supports the president and says he supports this strategy. that is directly against what we have learned from our sources, but we will present both of those pieces of information to you are viewers. and i've also learned that the president's frustration this week originated from his trip to gentleman can pan where he spent a lot of time with stephen miller, his hard line immigrat

. >> remember valerie thomas' daughter kayla?rable 8-year-old who got sinus surgery from mark weinberger back in 2004 when her real problem was a brain tumor. >> he knew what he was doing. he knew that the surgery could cause me problems. >> what kind of a man do you think would skip out on all this trouble? >> a coward. >> while weinberger was chasing adventure in europe -- >> are you happy? >> i'm happy, baby. >> -- kayla thomas had been growing up with a benign tumor in her head. kayla's mom says the tumor could not be removed because extensive scar tissue from the weinberger surgery blocked access to it. >> and she's had many spinal taps since because the tumor caused increased intercranial pressure. >> a lot of things are taken day by day. i guess right now there is no other way the take it. >> she wonders what life would have been like had she never met mark weinberger. >> if they had gotten the tumor out, maybe my life now could be a little bit better. >> patients and others hoping mark weinberger would be severely punishe

>> kayla v.rly collegacademy in south jamaica, new york. go -- [ cheers and applause ] >> jimmy: academy, okay, good. last night, the met gala was last nig . katy perry, one of our favorites showed up dressed as a chandelier and a also a a hamburger. that's how it was last night. if you went to the mala dressed up as an office supply, which office supply would you dress as? >> i would dress up as a a stapler.: >> jimmys! [ cheers and applause ] yes! and which celebrity would you bring as your plus one? >> honestly? >> jimmy: say who you want? >> idris elba. [ cheers and applause ] >> jimmy: ha, i knew it! i knew it! i knew it! he's too good looking. he is too good looking. okay, roots, we have kayla who teaches math at the york early college academy. [ light laughter ] york early college academy and you better p the whole thing in there. [ laughter ] if she went to the met gale as an officpply, she would dress up as a stapler. and her date, of course, would be idris elba. the one and only. we lov

let's get to kayla tausche in washington. >> u.s. soy bean farmers hit from multiple forces, delaying and stockpiling crops. china halting good will purchases that would have totaled nearly 6 million metric tons on saturday the total tariff rate on soy products entering chain will rise from 28% from beans and 34% from oils. trade sources say the fight is likely to intensify further before it cools down i'm told vice president mike pence is planning a speech on china's human rights record tied to the 20th anniversary of the tiananmen square massacre and could mention human rights sanctions. a white house official plans commemorating the speech around the anniversary. one of many hawks vocal about china within this administration, it's important, kelly, because as we expect potentially this administration to weigh further sanctions on companies like hick vision, my sources are saying this speech is a potential venue for that announcement >> kayla, that's huge news that would be next tuesday now you have all weekend of speculation going

kayla with an update on the china trade talks. >>> alicia, if there's a rollback of the tariffs, how does it change the calculus of the fed? >> it's good for markets and good for earnings. so the markets, the path of least resistance will definitely be upward. the other thing to think about is we're seeing green chutes globally china looks better, asia looks better, europe doesn't look bad. if that's the case, it keeps commodities firmer it will work toward top line of the inflation number we're low now, but i've learned the markets have a way of making a fool of all of us at some point. when we're at 1 .5%, you have to ask where's the risk and that's why we think that this is probably the bottom. >> markets inflect the greatest pain on the greatest number of people >> that's right. you have to think well, how could you get higher and actually the way you could get higher on inflation is not implausible, and in fact, the building blocks are already there. and so the question is how strong will china's stimulus be ultimately what will the affect be globally on asia and in europe? we t

but that's not all he said kayla tausche has been following the action all day for us. kayla. >> president trump slowing down the sabre rattling in the last 24 hours, saying last night he's allowing three to four weeks to make a deal. today that he respects china's leader, xi jinping, and that he thinks the u.s. will prevail >> this has never happened to china before our economy is fantastic theirs is not so good. we've gone up trillions and trillions of dollars since the election they have gone way down since my election so that's the way it is. that's the way it stands we're going to do very well. >> so that's where the president is but over on capitol hill lawmakers are divided. some like mark rubio and steve scalise praise the president but others say they're disappointed. mitch mcconnell is expected to weigh in within the hour and that could be newsy when he does. >> we'll look forward to that, kayla, thanks. let's take a closer look at the impact of the tariffs and whether the u.s. is pushing on a string by pushing for a better deal joining me is derrick scissors

tausche, who's in washington, d.c., this morning kayla. >> good morning, andrew.out its next aid package to farmers this week to blunt the effect of retaliation from china, even as retaliation from mexico and canada ends. three soybean farmers we reached out to did not know what was in the package, and a usda statement said "the program is being designed to avoid skewing planting decisions one way or another. farmers should continue to make their planting and production decisions with the current market signals in mind, rather than some expectation of what a farming support program might or might not look like based on inaccurate media stories." as the administration moves to try to diffuse these negative effects, though, a new quinnipiac poll shows deteriorating support for the administration's trade efforts on president trump's handling of trade, 39% of voters approve 53% disapprove on policy toward china, 40% approve while 50% disapprove and when asked whether president trump's trade policies are good for the economy, 40% say they are, 48% say they're not the w

kayla tausche at the white house. >> reporter: we're learning more about where the personnel with the white house stood exactly on this mexican tariff decision i learned from two sources, including one who is close to the white house, that the idea for this strategy originated with steven miller, the president's immigration advisor who was traveling with him on his trip to japan over the weekend. and according to my sources, the president returned from that trip riled up about the surge in border crossings because steven miller had had his ear on that trip but i'm toldthere wasn't broad support for the rollout of these tariffs, including, as you just mentioned, opposition from the treasury secretary and the u.s. trade representative, two officials whose ideological views on tariffs are not normally aligned but in this case, they were. i'm also told that ustr staff was not in support of this because they felt that it would jeopardize the usmca deal. of course, the vice president was in canada. we've learned that larry kudlow, one of the loudest free trade voices in the room at the whit

kayla?trade tension have gone mostly quiet, despite the fact that tensions continue to simmer behind the scenes between the two sides you did see china's foreign ministry spokesperson at a daily briefing today say, yes, china prefers to resolve disputes through direct talks, but then officials told the "wall street journal" overnight that the chinese side does not know of any u.s. plans to travel to beijing for a next round of talks. but you are seeing china take some actions, and it's playing out a little bit behind the scenes here. you saw china, its central bank intervening to prop up the chinese yuan above the $7 level, that key psychological level and then, of course, there is some news about potential purchases of jet fuel in china that could happen later this summer to blunt the effect of the trade war. these are both according to reuters. and then, china's also canceling a major purchase of u.s. pork orders this is according to data from the u.s. department of agriculture. in the las

kayla tauschi as mentioned in washington with the latest on trading. kayla, we'll kick it off with you and what wuf learned >> we've just reported in the last hour, sara that it does appear the chinese are committed to coming to washington for trade talks this week according two sources who have been briefed on the status of these talks and where things stand at this very moment in time there are a few key pieces of information we are still seeking. the first is the size of this delegation the chinese had been prepared to bring up to 100 officials with them this week to washington one source says that we should expect a smaller delegation because of the tensions that have erupted between these two countries in the last week and also whether this delegation will in fact be helmed by china's vice premier and special envoy leo hu senior administration officials have previously described liu he as the closer with the expectation he would be the one to negotiate a deal on behalf of china's president and that that deal in principle could be reached as soon a

over to florida where little kayla just got surprised at school by his older brother who's come backoyment. they're so close and his big brother's been gone for several months.mthe one recording the >> he loves the crunch. >>> this guy in china has itching, tickling in his ear. so he went to an e nerks g. >> i see what the is. >> but he got out his endoscope. that spider has covered the entire ear canal with a wedge. it was too small and too quick. so a couple of drops of say lean and that made the spider evacuate. >> what made the spider think that's the best place to catch insects? what else was in that ear? >> he didn't go in there to find insects. he went in there to lay baby spider eggs. so his whole head is going to erupt and -- >> how many of you are at home right now going -- is that allergies or is that a spider? >> they're going to curse you in the midof the night when that ear itches. >> is that a spider in your ear? >> harris the dog really needed help. >> oh, my goodness. >> happy ending next "right this minute. "and still to come, the globe trotters see if they've got g

let's get into the stories driving the market kayla tausche with the latest china trade developments diana olick with the new software housing data. leslie picker outside facebook's shareholder meeting this afternoon and deirdre bosa with three things to watch from uber's first quarterly report as a public company kayla'sar let's start with you on trade >> the trade war between the u.s. and china is set to heat up the trump administration is planning to censure china on relthz freedom and human rights in a hawkish speech in the works from vice president mike pence the speech will be after next week's 30th anniversary of the tiananmen square massacre a white house official confirms. and it comes as china weighs cutting off critical minerals from the u.s. manufacturers. as a chinese diplomat accuses the u.s. of naked economic terrorism. and as rhetoric ratchets up in state media and of course those tariffs from china set to increase on saturday wilf >> kayla, thank you very much for that let's get to diana olick with the latest housing data. diana. >> reporter: wilf, pending home sales

bill >> kayla, thank you very much. so despite all these trade fears, the s&p and the nasdaq are positive for the week. should investors still stay the course david kelly is chief global market strategist with j.p. morgan, and says it could push the u.s. into recession and allie at ubs financial services, a little more optimistic and thinks the u.s. and china will reach a deal what leads you to believe that >> i think that we all knew that this was not a single issue and combatting or dealing with years and years of a relationship and turmoil on both sides. there are reasons why each administration wants to get the success and put it behind us and we think that the escalat n escalation, and that's what it is and we're going through negotiating and bargaining tactics on both sides and we see some, a deal coming. >> for how long? how long before that deal happens? that's the thing >> that's the issue. i think it's weighing on the market every day that's what we've seen but i think you continue to get a back and forth in t

on that kayla, good morning again!e state of u.s./china trade talks in five tweets he's saying he's in no rush to make a deal, that he's working to put tariffs on all chinese goods sent here to the u.s., which he estimates will reap $100 billion in proceeds, which he'll then funnel to farmers hit by chinese retaliation and other policies like infrastructure he also incorrectly suggests china is paying these tariffs, which are actually footed by u.s. businesses importing these goods. but he has a recommendation for those businesses, saying, build your products in the united states and there are no tariffs! these proclamations come as top negotiators from the u.s. and china held four-plus hours of talks last night, including a working dinner near the white house, but those talks failed to produce a breakthrough before a tariff increase took effect at midnight there is no scheduled meeting between president trump and china's vice premier today, and it's unclear whether trump spoke with china's president, xi jinping, last

. >> hold your response for one second breaking news on trade kayla tausche, what's going on >> the official between the u.s. and canada on this deal that was reached to end steel and alum nuinium. canada will end its retaliation against u.s. products, the two sides will drop all lawsuits brought at the world trade organization on this specific metal tariffs issue and canada will have an enforcement mechanism to block the transshipment through its country from places like china to the united states and if there's an issue of oversupply in the future, they could potentially open up new consultations or negotiations on this matter. this is a significant cease-fire between the two countries. the tariffs have been in effect for close to a year and it is expected to be the road block that's removed that, allowing the usmca deal to go forward. >> thank you, kayla tausche. and george, if there was a decline in live sports, it would be a disaster for the traditional media companies, right? >> that's right. but still right now, the top 100 programs, sports is still highly valuable >> it might be high

kayla's military father surprised her at her graduation. get this, they haven't seen each other in 10 years. >> wow. >> he's a tank commander stationed in korea. face facetime kept them connected all the time. but to actually hug your dad. she hadn't seen him in 10 years, since she was 8 years old. the snow coming down steadily in the sierra. if you're traveling, heads-up. you want to check the road conditions. there may be chain controls going up. as we bring it back home, get a closer look, we had rain that was heavy for a few minutes that moved through san jose. so everything is still wet. a little bit of a soggy start for some. we haven't seen as much of that rain in the north bay. we can see there are some showers just to the north of you. we will be watching that moving in over the next several hours. our hour-by-hour outlook shows at 8:30, scattered rain moving through, very hit or miss. for the east bay, it starts to move in a little bit later this morning. and we may all take a break during the early afternoon hours. but then that

we'll see what the tenor is tonight when the two sides meet. >> and kayla, been fascinating watching the dow go from being down 400 points all morning to this big turn around as eamon said earlie tgs not as if the president struck an optimistic tone, it just seem to be a few phrases where he said maybe a deal could still come together or item going to be on the phone with president xi. >> the president usually highlight both options he has. he talks about the vice premier being a good man as he said last night at his rally in florida but then says i don't have to do this deal, i can walk away he usually talks out of both sides of his mouth on this topic and he did that again today. he talkeded about president xi getting on the phone with him and this beautiful letter he received, but then talked about negatively about what china did in the last week and how they reneged on a deal so itseems he's leaving both opgs squarely op the table >> absolutely. thanks let's drill down on the market rebound first. bob pisani is at the new york stock exchange with the run of things, bob. >> just t