in 2017 guys, back to you. >> meg terrell, thank you. >>> the always trade war vulnerable retail sector falling two and three quarters percent today. let's get to courtney regan live with more on the damage, courtney >> of course, for retail china is a very important market for several reasons. first of all, it's the number one country of manufacturing origin for the clothing and shoes we buy in this country with the growing middle class it's important for u.s. brands and retailers to sell into that market so when you put it together, tariffs on imports from china and retaliation imports on goods that are sold to chinese consumers are double painful for some retailers and brands so far in 2019, tariffs have been mentioned on 166 times on different retailers and brands earnings calls but today, a lot of those retailers are letting the trade groups do the talking and responding for them so the national retail federation just putting out a statement here talking about the president hiking those tariff rates after the close and the statements say it's impossible for businesses to plan for t

. >> later in our program, meg terrell will look at t opioid litigation still pending and explain thence. >>> onl street, stocks bopped and inverted, a phenomenon we'ven telling you about that has preceded recessionsn thes past. that sent bank shares lower and if you add in concerns over trade you have a down day for stocks. the dow jes industrial fell to 25,727. the s&p 500 slid nine. let's turn to mike ryan to talk more about the stock and the bond market. he is chief investment officer at ubs global management americas. mike, welcome. nice to have you here. >> thanks. >> you do not see a recession coming. you think the u.s. can avoid a recession, but you are paring back some of your equity positions? >> we are.on again, we see a recession, at least not over the course of loe next six to twelve months. certainly thel economy has decelerated, but you balance it ket with strong labor m conditions in the u.s. and a healthy consumer sector as well. the risk of recession are still fairly lown our estimate. that deent mean we don't want to pare our risks back a bit because of the uncertai

meg terrell with your reporting as well, thanks, >>> ahead on power lunch, our power player, shaq is in the house. the nba legend will joins live to talk sports, business and a whole lot more retail stocks rallied more than 2% after the break we'll tell you the one stock in the group traders say is screaming by the ceo of washington federal bank joins us. all this when " .power lunch" returns. returns. >> stand up if you're a mother. if you are actively deployed, a veteran, or you're in a military family, please stand. twil you this, southern new hampshire university > can change the whole trajectory of your life. . >>> welcome back to "power lunch," i'm mike santoli retail stores, five below, dollar tree and dollar general are hanging up gains, dollar free and dollar general results come out tomorrow. let's bring in trading nation team hatchesh harry, this group has held up better than the typical resale stock. how does the sector set up right now in terms of discounters? >> 83, i'd say themematically, we're not seeing the type of broad-based industry strength that would make the gr

. >>> and pharma stocks among those moving to the downside meg terrell has more on that from headquarters. meg? >> they are moving downwards, health care stocks are actually holding up a little better than other sectors, down now about 1.3% within drug makers, biotechs, the ibb biotech down 2.3%. the bigger biotechs are all off a bit less than smaller companies, chuck see reflected in the performance of the xbi biotech, which is influenced more by those smaller company stocks than the ibb. in big pharma, most holding up bigger bristol meyer, merck, johnson & johnson, abbvie, for those companies, earnings season have been pretty good, the exception is pfizer. it faced a sell-off last week after its deal with mylan and disappointing second quarter results. the company also said friday evening a clinical trial with partner glioco medmedics failed, guys health care stocks overall a bit more defensive, and they are also in the red. back over to you >> meg, thank you. casino stocks are also taking a hit. contessa brewer has the latest on that. >> china concerns definitely weighing on those maca

meg terrell was there wfor the verdict. orning, meg. >> reporter: good morning, joe the judge here saying j & j was responsible for causing the state's opioid crisis saying essentially what it caused a public nuisance by aggressively marketing to doctors in his decision he said the opioid marketing was false, deceptive and misleading causing exponentially increasing addiction and overdose deaths in oklahoma they must pay $572 million toward remediating the problem in the state the state had asked for $17 billion so that was quite a lot less than what they wanted wall street said j & j could be forced to pay $1 to $2 billion you did see their stock rise as well as stocks in other cases that could go to trial companies like teva and endo in particular a lot of these cases are still pending and we'll see them start to accelerate this fall, including a massive case in ohio a federal lawsuit that's consolidated thousands of ha suits around the country this one is not over for johnson & johnson. it said it plans to appeal it said

. >> pharma is onesector that is holding up pretty well let's get to meg terrell for a check on that. >> drug stocks are down. it is the larger more defensive names holding up the best. johnson & johnson, abbvie, bristol-myers, merck one exception is pfizer. it is a similar story in biotechs the larger names are down less than the smaller ones. ibb biotech etf there, more heavily weighted to larger cap, amgen and gilead >> meg, thank you. >>> let's look at how defense stocks are performing today. morgan brennan has that story for us >> the ita aerospace and defense etf trading down 3% now. many of the defense names are actually outperforming northrop grumman trading higher now. lockheed martin, raytheon, harris holding up right now. why are we seeing this defense stocks are defensive little to no exposure. strong cash flow big order backlogs that provide some longer term sales guidance and for many names, valuations look reasonable if not even cheap relative to the s&p now. the exceptions, contractors with other businesses that are exposed to trade, also the global economy, like unite