i'm morgan brennan along with dominic chu. you up to speed on market action starting in the u.s. with equity futures as you can see we are indicated to hope popen positive this morg the dow jones is up 1 12 futures up 112 above fair value. s&p 500 up 8.5 nasdaq up nearly 30 points here with the futures above fair value. apple earnings after the bell and a see of other earnings this morning. all of this after the indexes closed higher for the month of july turning to oil, also green arrows wti crude is trading above $50 50.36 a barrel ice brent at 52.84 and rbog gas is trading higher >> a new report out overnight puts staggering new numbers on brexit's impact on the banks so the headline here, britain could lose up to 40,000 investment banking related jobs after brexit is said and done. let's bring in martin arnold, banking editor for "the financial times. the study puts a fine point and some serious numbers behind it how big of an impact could it be is it just the jobs or elsewhere in the financial markets >> it's really about

i'm morgan brennan. >> shares of j.c. penny hit an all time low. they lost more thmoney than fea revive sales just don't seem to be sticking. the company reported a decline this a key sales metric, making it the latest department store chain to announce dismal results. the stock took a beating and fell 16%. courtney reagan has more. >> they aren't inspiring any more hope this week. going out of business sales at nearly 130 store, plus higher levels of shoplifting and damaged merchandise led to a bigger than expected loss for the retailer, even with sales in nearly all categories improving. on the flip side, the liquidation sales are helping them clear merchandise going into the most important part of the year. >> they do go into the second half of the year with a much cleaner slate. they continue to get a nice contribution from alliances. the ceo mentioned on the call they've started august strong in terms of their back to school selling season and so still a hurdl remain. up. but we would say it was a bit of a cleaner report. >> j.c. penny still t

this is going great for my business. >> reporter: for "nightly business report," i'm morgan brennan in newark, new jersey. >> the trucking industry may be getting uberized, but the trucking funds override the savings. it may hurt business. according to portfolio holdings, vanguard, hartford and t.r. price have overcut their investment by as much as 50%. uber is currently looking for a new ceo. since uber is a private company, its formalization rate changes for investors. they are used as proxies in investment sentiment. >>> american eagle shares soar. the teen clothing retail reported higher revenue helped in part by the company's strong area brand. the sales also beats street estimates. shares rows nearly 8% to 1208. revenues at top expectations. suggested profit was better than expected as well. the company also said it's making efforts to drive more traffic to its stores. the shares soared 19% to $6.56. >>> the medical device striker cut its earnings for the full year after saying it was voluntarily recalling some of its oral care products due to cross-contamination concerns. strike

. >> i'm morgan brennan in new mexico. holloman air force base is home to the 49th wing and where most are trained, but something else is here right now as well and that's something that could help transform the way military equipment is acquired. that's coming up next on "nightly business re >>> consumer report ss pulling its recommendation on four microsoft laptops. this after one survey found users were complaining about problems with those devices. based on the results, the magazine ple dikted that one quarter of microsoft's laptops and tablets would have reliability problems in the first two years of ownership. >>> the air force needs new fighter jets, but they're expensive. so, it's doing something unusual that could give smaller contractors a chance to build a cheaper plane. morgan bren p reports from holloman air force base in new >> in the middle of the desert, fighter pilots have been conduct testing in a new kind of experiment. >> we took a problem we saw or area we thought we wanted to experiment and engaged in

. >> reporter: >> reporter: i'm morgan brennan in windsor, connecticut. take a look weather analytics, social media fees. big data. some of the tools that insurers like travelers are using to begin assessing damage from hurricane harvey. before adjusters are even on the ground. that story is coming up in "nightly business report." >>> we're starting to see harvey's exposure for mortgage giants fannie mae and freddie mac. fanmy they says there were more than 46,000 fans whose mortgages in the initial impact area with about $5 billion of unpaid balances. meanwhile, freddie mac estimates it has 167,000 mortgages in the 18 counties affected so far but says that number could grow. >>> insurance stocks were hit today as investo wait on the initial estimates of damage from harvey but the insurers aren't sitting idly by. they are using state of the art technology to get a head start on assessing the damage. mo takes us to travelers catastrophe center in windsor, connecticut. >> reporter: as harvey continues to linger over the texas coast, insurers are using techn

could match katrina's $15 billion cost more on the insurance impact of this massive storm morgan brennan live at the travelers insurance national catastrophe center in connecticut with more. morgan >> reporter: good morning, guys, it is too early to know what the damage and cost will be, probably still weeks away from final estimates, but early risk modeling estimates that were released before the hurricane made landfall as category four, already anticipating billions of dollars. some are saying this will be a top ten hurricane in terms of cost, tens of billions of dollars. to put it in perspective, costliest hurricane from insurance loss standpoint, katrina, 2005, almost $50 billion. followed by andrew, $24 billion, adjusted for inflation, superstorm sandy, $20 billion. texas specifically, this hurricane compared to 2008 ike and 2005 rita. in terms of property coverage in the state, this is according to insurance information institute, names to look at all state, state farm, farmers among the biggest underwriters of homeowners, travelers and aig also have consumers, but some of the bigg

. >> i'm morgan brennan in for sara eisen >> great to have you with us let's get straight to the latestn harvey in a few moments, first a check of global markets. in an extraordinary turnaround. yesterday at this time, we saw dow futures down 150 points, p in the end they ended up 56 points higher. that turnaround coming a half hour after the open in terms of the most pronounced fashion, consumer confidence came in, but the main reason is that that realization that the north korean missile test did not affect things much we got that turnaround and it's continuing today the dow higher by 45 points. the nasdaq by 15 ten-year treasury note fell below 2.1% we're back above 2.1, but the net fall in yields yesterday did weigh on bank stocks >> turning to the rest of the world, that similar dynamic we saw playing out in u.s. equitie yesterday playing out today in the asian markets which closed mostly higher. the nikkei up 0.8% the hang seng, that was up more than 1%. the shanghai composite closing about flat the koz spi up 0.3%. all of these indexes are higher on the week and we're 36 hours ou

morgan brennan is live in windsor, connecticut morgan >> hey, melissa.ake a look behind me, we have weather analytics. social media feeds, big data this is all some of the tools that insurers like travelers are begin assessing damage before hurricane harvey before the adjusters are even on the ground we have that story coming up when "power lunch" returns. befh ground >>> welcome back, harvey can top hurricane katrina. how are insurance companies are dealing with the devastation they don't have to worry about floods can you believe that >> morgan is live at the traveler national center, hi morgan brennan john, i want you to take a look at this. we are in the national center for travelers. you can see behind me, we got weather and analytics and big data and social media feed all of this is monitored at a realtime look at harvey. which is still sitting in texas and parts of louisiana now a lot of technology in it is relatively new it did not exist for hurricane katrina or did not exist for 2008 this center did not exist and yet it is a crucial part of the

meanwhile, morgan brennan is live here in the studio. >> i want you to take a look at this this is a google map of the houston area right now you could call this a rough sketch of what the road closures look like in the houston area. all of those red lines and the circle with the little dash through it, these are road closures and basically closed from flooding and other obstructions in the area. now, brian just talked about cars and the rescues happening with cars. this means that trucks are also having a hard time getting in and out of the area. 7% of overall trucking in the u.s. is going to be affected for two weeks, thanks to this storm, and then a month out, it's expected to fall to 2% nationally, which is a significant number for this sector trucking rates are expected to rice due to the spike in long-term demand that will come from the massive rebuilding effort with all of this. that's why the stocks have been trading up if you take a look at warner enterprises, night and swift, in the process of merging, also, schneider national, these names have been trading, for the most pa

i'm morgan brennan. >> today, the u.s. launched an investigation into china's alleged theft of american intellectual property. the move was widely expected. the it is the administration's first direct measure ae tra pras theft of such property could amount to as much as $600 million. china said it will defend its interests. >>> trade is one of the president's top priorities, bringing jobs back to the u.s. is another and progress was made on that front today. wisconsin's state assen tax bre package that would bring a fox con plant to the state. the bill heads to the wisconsin is that the. fox con, best known for its role in manufacturing the iphones has agreed to build a $10 billion plant in the state, but requires the approval of certain tax incent he'll explain. >>> a rough day and week for shares of major movie theatre chains. today, there are reports that apple and hollywood studios are discussing the possibility of creating a video on demand format that would release films just weeks after they open in theatres. cinema

morgan brennan explains ho >> the rocket race is ramping up. and for the start ups leading the charge, when it comes to new business ideas, space is the limit. the latest example, vector space systems, which s launched its new rocket from a georgia space pad this week. it was the second test of the 40 foot tall vector r and while it didn't reach orbit, the launch puts the company on track to begin flying tiny satellites to space next year. the ceo and cofounder was a founding member of elon musk's team. he says the goal is to flag year for the staggering low sum of $3 million per launch. >> what you have to be able to do to scale rocket to that kind of flight rate is three things. one, you have to design the smallest and simplest rocket possible, our vector r, then you have to manufacture them like sausage, then learn how to fly them like crazy. t >> they've sold more than 180 so far and has freed -- from venture capital firms. they are targeting the satellite undersiege by some new ones that launch bigger, more valuable payloads less frequentl

ken is too decent to actually have corrected what is as usual trump's playing with untruths. >> morgan brennannt to shift to another sector. financials we've seen the stocks selling off in the last couple of people and you sat on the board of morgan stanley as well given what we've seen developing this week, do you think we get financial -- more financial deregulation moving forward? >> well, you know, i think it's a god general questi a good general question. the question is can trump get anything done? can kelly, you know, keep him at all in line or is the market looking through and saying, well, you know, pence, if he were to succeed trump under any or a variety of different scenarios, what would he be able to get done and the reason the market has been reasonably calm is that it sort of sees through to the other side and earnings have been good. >> final question. you've spent a lot of your career in europe and overseas, and i gather you may be there on holiday now. what is your impression of the view of european business people about making investments in the united states, about uncertai

i'm morgan brennan a successful liftoff for elon musk's spacex.his mission is spacex's 12th for nasa to resupply the international space station. they are carrying more than three tons of cargo and science experiments and is expected to hook up to the iss on wednesday. the first stage of the rocket has already landed successfully at cape canaveral. this brings spacex one step closer every successful lunch brings it one step closer to its test flight of the much anticipated falcon heavy, which is expected in november. back over to you. >> morgan, thank you so much morgan brennan with the latest there. great picture. it never gets old seeing pictures like that, does it? >> no. >> has anyone ever seen a launch it's so exciting. >> so unreal. >> private sector doing this, jim, is amazing. that's why musk gets as much gravitas as he does. >> let's talk about earnings jim, you talked about the big box retailers. walmart, target, depot >> i think walmart is so back. no matter what home depot says, the next eight people say they are going to be the next a

cnbc's morgan brennan has been tracking the stock's one-day performance and joins us now doesn't lookt, morgan. >> yeah. i would agree, sara. a bright red for brighthouse financial, bhf trading down 5.5%, trading at $61 a share one reason for this, unlike its parent company, the spinoff does not pay a dividend meaning forced selling by funds, that has metlife shareholders receive stock in brighthouse now on "squawk box" this morning ceo saying this spinoff creates two very different companies with very different risk profiles as a pure play retail life insurance and annuity businesses, brighthouse is levered to interest rates. asset management and international life insurance is now about 40% of the company's businesses, and in other words brighthouse is high beta likely to appeal to deep value investors and metlife is now a simpler story, less market sentivesity and better cash flow generation and likely accelerated capital return to shareholders few earnings surprises are tied to unexpected costs from the spinoff which has been in the works since early last year and which, again, we

morgan brennan is back at headquarters with more on the ballout. >> reporter: hey, kelly. flooding and need for safety freight movement in the gulf has really ground to it a stand still. not surprising kansas city southern is still suspended after a force major was enacted on friday and freezing shipments from mexico berkshire hathaway's bnsf and analysts think volumes will remain impacted because not the networks will take time to get up and running and so much chemical refining and it has been and will be disrupted trucking bouncing back and one of the biggest factors currently affecting trucking is actually rising fuel prices a gallon of diesel is 1 cents higher than it was a week ago on expectations that the supply will be disrupted. that will start to show up in truck rates which are widely expected to rise as the rebuilding effort will boost demands for trucks that are carding supplies into texas. that's the reason you've seen trucks of warner enterprises and schneider national and nyx transportation and swift international, all rising are and they have closed up hig

. >> thanks for joining us, morgan brennan. >> come back any time, all right? >> we can say "closing bell" starts right now >>> hi, everybody. welcome to "closing bell." i'm kelly evans at the new york stock exchange. >> and i'm bill griffeth stocks round pressure today. the dow actually in negative territory for the week now it's been hovering above and below that line all week earnings from cisco and walmart dragged the average lower, and, of course, the uncertainty coming out of washington doesn't help as well. >> yeah. even p & g is negative all 30 dow components are. investors looking at the fate of former goldman chief operating officer gary cohn. the white house says he's not leaving his post we'll have all the details. >> steve bannon says we're at economic war with china. the former ceo of lvmh will tell us why he actually doesn't think the u.s. can afford a trade war right now. let's start with the two big things investors are watching carefully. retail earnings again and more potential drama in washington. courtney reagan is covering the walmart stor

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liberty mutual insurance. >> all right my check, please morgan brennan gave you headlines on this as watch herbalife, newskin they are down on a report china may crack down on them i wonder if this is a retaliation for the story we just did technology, china says, you know what, mlms, the stocks down pretty big. >> i enjoyed interview and meeting john rantsberger from "cheers. wish him the best of luck with his gift box company. >> thegiftbox.com. >> and how about the white moose. i want to see this again a swedish white moose. only about 100 of them, and what a lovely animal that is. nice white moose. >> like the end of "cbs sunday morning. >> thanks for watching "power lunch. >> okay. we can't show the white moose video. that's done. >> what about the golfer >> the golfer we'll get to that's coming up. >> welcome to "closing bell," everybody. i'm kelly evans at the new york stock exchange. >> and i'm bill griffeth any moment now president trump is going to announce a new investigation into china's trade practices. we'll take you live there to the white house as soon as that gets un

president trump will address his strategy in afghanistan in a primetime speech tonight morgan brennans now with a look at defense stocks ahead of the president's remarks morgan >> hey, that's right, scott. so a mixed session for defense stocks but the sector is continuing to be in focus as president trump outlines that strategy for america's longest running war. lots of unknowns still, but if that includes more american troops in afghanistan, more engagement would mean more money, so, first of all, how is it going to be paid for? the trump administration proposed a 2018 defense budget of 639 billion all in, but the overseas contingency operations oco portion which makes up the war fund would likely increase if there's going to be a ratcheting up, service contractors like leidos and caci could be likely beneficiaries. could see more orders for remotely piloted aircrafts from general atomics, and could see more potential switch blades from small-cap contractor aero environment and like the text call armored vehicles made by bae systems, general dynamics and oshkosh corporation. lastly,

guys >> great okay, morgan, morgan brennan, thank you. us now, managing director covering the life, property, casualty and mortgage insurance sectors at fbr capital markets. how's it all work? how much -- who gets exposed how much are they exposed when we consider all the bermuda companies that do reinsurance. how does the risk really get spread around, randy, in a nutshell >> sure, good morning. so, you know, we are running this morning with a $2 billion to $4 billion loss for the storm overall. i cover primary companies like allstate and travelers our view is that this event is mostly going to be covered by the primary insurers i think reinsurers are more likely to see risk from offshore energy and maybe some onshore energy. as you mentioned in your broadcast all morning, it's more of a water event than a wind event and that means the federal flood program and ultimately the government's going to bear the brunt of this. >> randy, just to make it clear the $2 billion to $4 billion number you're talking about is just the insured losses. l

morgan brennan has more. >> that's right, so general electric is now trading in bear market territorydown 22% from its december high. it is the dow's worst performer and it came under pressure today on news that berkshire hathaway sold its stake now, remember, warren buffett invested $3 billion during the financial crisis this was a special deal. and it resulted in a roughly $1.5 billion plus profit that stake accounted for less than a quarter% of outstanding shares so small but the move was interpreted as one fewer vote of confidence for this beaten down stock and just as john flannery takeses he the. so what will it take for ge to reverse course for starters, investors and analysts want to see more stable cash flow. that has been an issue all year long there is also skepticism that it can hit its 2017 forecast and some are concerned that the power business which is ge eechlt largest is showing signs of softening but the biggest thing to watch, going to come in november. new 2018 eps guidance after flannery's review of the company. the street limits that ge will miss its $2 per share

. >>> hey, guys, morgan brennan here with breaking news regarding ge, specifically ge's chairman through the end of the year, jeff immelt, in a statement, he notified members of the manufacturing council this morning that he could no longer serve on the manufacturing council saying, quote, the president's statements yesterday were deeply troubling, there would be no ge without all peoples races, genders and sexual owner yenations. ge has no tolerance for hate, bigotry, and the white supremacist is extremism that the country witnessed last weekend. he goes on to say that he joined this panel because ge exports over $20 billion of american-made goods to the world and he believed we are best served when we constructively engage with leaders in the u.s. and around the world, but that given the recent events, the ongoing tone of the discussion, that he no longer feels that this council can accomplish these goals. that's a statement from jeff immelt back over to you. >> morgan brennan with comments from ge's outgoing ceo, thank you. >>> well, there's other stuff going on, by the way, in washin

another key to the crucial energy puzzle is the pipelines of course morgan brennan is working on that part of the story. >> hey, it's look a look at the picture in the wake of hurricane harvey start with the clone dwryale pipeline have been impacted by harvey that's thanks to out ages at supply points and a lack of supply remember about a quarter u.s. refining capacity off line in the gulf right now the privately held pipeline moves up to about 3 million barrels of refine the product per day, it's supplies as you can see key eastern markets. everything from nashville, atlanta, charlotte all the way up into new york that's the lenden nurse outpoew. the company said the lines are down from houston to herbert you can see the red dots but operating east of lake charles in louisiana colonial warns however that devote deliveries will be intermittent ant dependent on terminal and refinery stlie but does hope to be able to return to service to houston starting on sunday. colonial isn't the only one. the explorer pipeline carrying about 660,000 barrels of refine the products daily north ward.

joining us now to talk about what that means for the military's suppliers, morgan brennan.hat did you find out? >> president trump will become the third president to send more troops to afghanistan. here's the key about that. what are the roles they're going to fill? the center for strategic and international studies published a 160-page report on this he says this will likely involve specialized officers who will train and assist the afghanis. also expects to see increased air support. to analysts say services contractors will be early beneficiaries of increased activity other names to watch, makers of remotely piloted air crafted, which are inaccurately referred to as drones sometimes manufacturers of light tack cal and armored vehicles bae systems. and if we boost air support, you're talk about lockheed martin and boeing. we're still light on details here in the meantime there's another development to watch today when the markets open this occurred last night the air force awarded two new development contracts for t northrop grumman will compete for that lockheed will no

cup for a hole in one and congratulations to him that's the news update for this hour over to morgan brennanith what's coming up on "power." >>> coming up at the top of the hour, we have an exclusive interview with house speaker paul ryan. we'll talk taxes, the trump agenda and the debt ceiling and much more. plus, what happens when a company stock is tanking but it's still paying a very high dividend we break down when you should worry that the payouts are about to be cut. and we're tracking tropical storm harvey what it could mean for oil prices, also the local economy that and so much more straight ahead. in the meantime "the halftime report" is back after this i think that she's a very nice girl... you never got the brakes looked at? oh yeah. no. at cognizant, we're helping today's leading manufacturers make things that think and do automatically. imagine that, a world of new digital products and services all working together for you. can i borrow the car when it's back? get ready, because we're helping leading companies see it- and see it through-with digital. mikboth served in the navy

. >> nafta talks kicking off this week our morgan brennan focusing on the stocks that could stand to win or lose from a revision. "halftime report" returns to post nine right after this at ally, we offer low rates on home loans. but if that's not enough, we offer our price match guarantee too. and if that's not enough... we should move. our home team will help you every step of the way. still not enough? it's smaller than i'd like. we'll help you finance your dream home. it's perfect. oh, was this built on an ancient burial ground? okay... then we'll have her cleanse you house of evil spirits. we'll do anything, (spiritual chatter) seriously anything to help you get your home. ally. do it right. >>> deere falling more than 5% in today's session according to our data partners at kensho, there have been ten other times the stock has dropped at least 5% in one day since 2010 a month after a similar drop, agco jumps nearly 11%, deere rises about 8% cart pillar and torro gain more than 7%. for more, go to cnbc.com/kensho. now back to the "halftime report". >> welcome back. nafta renegotia

. >> what will morgan brennan be doing in the year 2045 >> working for cnbc, naturally. >> will "fastbe here in 254 2045. >> it will be, you won't. >> ouch. that's hurtful where are you? >> over here you really cannot see. let's get to stocks. next eclipse, 2024, april 8th. i already requested the day off. no one else is getting it. stocks for the next 28 hours, pete najarian? >> look at the camera. >> where is it >> i'll continue to own it, likely, unless something major changes, apple i love the company they continue to innovate, go the right direction. augmented reality will be the next step. listen to gene munster he's right. >> these glasses, it's tim seyless. >> brian, goog the is the one that sticks around a company that has their operating at margins up to almost as high as they've ever been multiple billion-dollar businesses within the company we're going to hear about over the next 20 years. >> unless the internet is a fad. steve grasso >> look at alibaba i don't know about the next 28 years, the next 2 to 8 years alibaba is following in amazon's footsteps. alibaba. >> guy >

thanks. >> coming up next we'll check back in with morgan brennan.n on a real time beer run with the truck that's using some disruptive technology as we head to break, here's a quick programming note just one week until becky's live interview with warren buffet that's wednesday august 30th on squawk alley which is kind of part of squawk box i guess we'll be right back. >> user friendly apps operating on the cloud and powered by algorith algorithms so take this big rig we're riding in right now. he's got 2,000 cases of budweiser beer in the back of truck. it was loaded up in newark we are on our way to a distribution center in the bronx. now this road was brokered by a seattle based start up that raised $80 million from the likes of bill gates, jeff besos and they say using this technology is making its supply chain more efficient >> we can learn more about our business for example we can understand where we're delaying drivers at pick up or we can see the truck as it evolves and delivers along a map along it's route through delivery and we also get i

looking to disrupt the way shippers are connecting with truckers our morgan brennan is live on a truckaltime delivery right now. good morning, morgan >> reporter: hey, that's right, i am technology is changing the way truckloads are brokered. think user-friendly apps, operating on the cloud, powered by algorithms matching freight to trucks at market competitive rates. so take the big rig we're riding in right now our driver, william, just dropped 2,000 cases of budweiser at a distribution center in the bronx. we are now heading back to the anheuser-busch brewery in newark to pick up a second load now, he uses convoy. that is a start-up that has raised about $80 million from the likes of jeff bezos, bill gates, mark benioff, and he started using the app six months ago and already is resulting in more business for him. as for anheuser, it's better navigating the highly fragmented truck industry to find capacity for all the loads. but convoy certainly isn't alone in this space. uber launched the freight service earlier this year. amazon is exploring this space and other startups include w

i'm demarco morgan in houston. >> brennan: and i'm margaret brennan in new york.us and good night. captioning spo >> it's long term, not short term. the water hasn't gone anywhere since we've been here today. >> it's a tough time for people. but you can come out here and really make yourself feel like a true texan helping people in need in times like this. >> i didn't think i was going to live and the lord allowed me to live. >>> the heavy rain is done, but the work is far from over. rescues going on 24/7, and one entire city has no running water tonight. long gas lines

powering up its catastrophe management center to assess the damage and that's where we find our morgan brennanorgan. >> reporter: hey, wil. travelers is assessing harvey right now from here in windsor, connecticut, at its national catastrophe center, and it also has resources on standby for the golf region. it's not just homes or businesses that adjustors are going to be assessing. several analysts expect the auto losses to be much greater than we typically see for a hurricane because the flooding has been so extensive and also because new cars are just more high tech the acceptsors are much more vulnerable to water damage that's something to watch with progressive, all start, berkshire hathaway and travelers as well which actually trains a lot of its adjusters on vehicle damage in this very room here in winder, but that's just one piece of the property puzzle since this is largely a flooding event, it is a complicated picture, and that's one reason so many of the early estimates on losses have been so varying depending on the sources, so here's how to think about this the federal government i

president trump addressing the nation yesterday what does his plan mean for the defense industry morgan brennanback with that. >> remotely piloted drones, mor military vehicles and munitions. keep in mind we're still very, very light on details. the first to benefit from a troop increase likely to be the service contracts, caci and leidos this could also help make the case for a light attack aircraft program. now as i saw firsthand earlier this month, the air force is test i testing as it explores this option the super tacano is being produced for the afghanis. we're paying for that as well. that said, analysts are skeptical about how quickly the program would translate into planes as we wait more from the pentagon on all of that, another piece of news is fueling the defense sector today minute man 3 ballistic missiles one of which was test fired earlier this month it means lockheed martin is no longer in the running for this contract valued at $25 billion telling me, quote, they are disappointed with the outcome and looking for a debrief about the selection. meantime take a look at defense sto

morgan brennan is here with more >> that's right, over the weekend, a u.s.ded missile destroyer, this is uss john s mccla mccain off the coast of singapore. the fourth times this year that a u.s. warship has been involved in the accident of asian waters. it is the second time that destroyed the ship fitzgerald deadly crash of the coast of japan the navy's top admiral ordered a fleet wide review in the pacific. these two cases. we are talking about clash d destroyer. they are made by general dynamics they are equipped with lockheed martin they are stocked with raytheo tomahawk missiles. according to a number of other shipping companies in recent weeks and months, we have seen that traffic pick up significantly so as all of this unfolds, eyes are turning to the korea peninsula where the u.s. just kicked off military drills with south korea this will be taking place the next ten days. tonight, when we have president trump taking to television talking about his much anticipated long away of afghanist afghanistan. >> morgan, thank you very much the great american

which is right over here, is the biggest port in the united states regarding tonnage, you heard morgan brennan how rail lines, airports, a lot of things you may not realize come through houston. of course the city is best known for one thing, that is oil and gas. and let's update a little bit on the refinery numbers again, what happens here matters on the west coast and matters on the east coast because about half of the gasoline that we use in the northeast, heaviest gas market in america is refined right here and brought up by pipeline about 20% of national refining capacity is currently offline. i say about because the numbers are fluid. some of the companies are not giving us exact numbers. some are not saying refineries are completely shut down here's what we know. the majority of the refineries as we talked about yesterday and this morning around here maybe about 2 million to 2.2 million barrels per day are offline. further east in bu mont, exxon confirmed the beaumont facility is shut down, reuters reporting that and motiva has shuttered 60% of the production at the big port arthur fact

let's get back to morgan brennan with those numbers, morgan >> let's look at the numbers american internationalright up here to look at reported adjusted earnings of 1.53 per diluted share this was a big beat versus the analyst estimates. and lower than invested casty losses this is behind the beat. 1.26 billion versus expectations and 975 million. but commercial is what disappointed pretax income, there was only 716 million commercial insurance net premiums written, also dropping by 9% on a constant dollar basis, divestitures and closely watched metric, that came in at 73.8 for commercial. with some of that increase related the company says to second half 2016 loss estimates that are tied largely to the u.s. casualty business now in the release, ceo and president brian saying, quote, we will build on aig's strong franchise by maximizing the value of our international footprint which distinguishes us from many of our competitors while market conditions remain challenging, we are committed to disciplined underwriting and are focussed on investing in profitable growth. kelly, more from him tomorr

. >> now as we show you they are in the way staying with defense, morgan brennan is at the air force >> reporter: hey, michelle the air force space is home and the vast majority of pilots trying to fly zones. >> something else is a foot here right now. as tensions escalate with north korea, there is been so much focus on military readiness. the air force is experimenting new ways to streamline its procurement process. that holomon they're testing jets this marks a big potential shift in the way the market can make puch congresswomen and tman, te that the goal is easier to ladies to work with the grove. >> were not going to spend a whole lot of team to come up with specific environments all right, lets see what people have and lets touch it and that's lauren from that and we'll see where we go. >> this except except striifts you have three elements and also tech hchlt tron. >> all three of those contractsers have put up money to be here and they're doing it without any guarantee that any of this could actually materialized into an official program of record >> guys. >> sorry, i want to

coming up s will the biotech climb continue that's ahead first to morgan brennan for a cnbc news update. >> the u.s. is requiring russia so close the consulate in san francisco and washington, d.c. and new york city in response to the kremlin aegs decision to reduce the mission in russia last month wells fargo says it's uncovered twice as many potentially unauthorized fake accounts than it originally estimated. the bank now says 2.5 million accounts were impacted by the fake account scandal it says it will pay out an additional $2.8 million in refunds to impacted customers. and a look at one of the many air rescues performed this week in houston these pictures are from tuesday as members of the new york air national guard performed one of its 345 rescues of families and animals who were stranded in the flood waters unfortunately, there's another hurricane on the horizon irma strengthened over the eastern atlantic forecast to become a major hurricane by tonight and could become a category 4 storm by the weekend. it's too soon however to speculate on the potential continental u.s. threat.

on the floor here with morgan brennan here today we had rally mode most of the day but it's kind of moderatedfternoon. we had some relief it seems that gary cohn says he's sticking around and will try to push through tax reform and what else is on your radar today >> that's certainly been the case we've seen all 11 s&p sectors higher today at all. i think sort of the big move that everybody has been watching in the past hour is actually not in stocks but in currency and the fact that we've seen the euro strengthen against the dollar, highest level since january 2015 after ecb president draghi spoke in jackson hole didn't lay out any kind of indication on a timetabling for paring back on the bond buying. >> does show how sensitive people are to any sense that things might change over there, that they might start to reduce accommodation. the currency markets, as you say, took it and ran. >> yeah. >> so we'll see if that's a follow-through or just a little bit of a blip on a friday. i would also point out that the bank stocks were outperforming today even though treasury yields didn't go off not

morgan brennan joins us right now with more on how the talks could hit the transport sector morgan, goodorning >> good morning, becky for those companies that are moving all those autos, avocados, energy products around north america, that cross border trade has been a growth story. especially on the southern border so take warner enterprises the biggest u.s. truckload carrier doing business to and from mexico. the ceo told us yesterday on power lunch that mexico business is now 15% of warner's total business that has grown for ten straight years he echoes what i hear from other transport ceos that it's time to modernize nafta. address e-commerce automate border crossings. both of which are on the table right now with these talks but beware, if nafta just goes away, all three economies would be hurt. that's what they say u.p.s. and fedex have been outspoken on trade as well with rival shipper ceos co-authoring an op-ed as they said earlier on your show, u.p.s. chief david abney maintains every new trade agreement has resulted in a 20% jump in u.p.s.' export business meaning more jobs. al

morgan brennan drew the short stick and joins us with what to expect from aig, metlife and prudentialrgan. make it interesting. >> good morning, joe it's going to be a really exciting day this is insurance super day a flurry of insurers reporting including the u.s. top three, aig, metlife and prudential financial expected to post strong earnings growth group underwriting expected to be favorabiliorgavavorablefavor. growth in the pension risk transfer business, a lot of companies have been offloading pensions to these companies, and expect an impact from low interest rates which has fallen with the yield curve flattening, despite more hikes by the fed. hi all three have conference calls tomorrow morning comments from the new aig ceo, bria dupperrault will be the most watched since he talked about more tech adoption and m&a for metlife, this is the last report before that company spins off its slower growth more volatile u.s. retail life insurance and annuities business that will start trading next monday as brighthouse financial. that's adding to the debate about metlife's fate as a sy

let's get over to cnbc's headquarters morgan brennan is digging through the numbers of hurricane harvey'se impact. while it's still early, she does have some things to tell us about. good morning. >> good morning, becky that's right, it is still very early. we're just starting to see assessors get out on the ground. the bigger number will come out in the coming days and weeks but the latest estimates of the impact of hurricane harvey, now, the risk modeling firm says economic losses, that's not the same thing as insured losses, could total $70 to $90 billion most of that flood related with less than 10% from storm surge and wind now, about half a million flood insurance policies, which are underwritten by fema, could be affected from the storm and they are warning that this could be the largest loss event ever for the national flood insurance program. now, as of wednesday, fema had already received about 35,000 claims these are just the initial claims to put this in perspective, hurricane katrina is the biggest event on record from a flood standpoint $16 billion paid by the government on

. >>> let's get over to morgan brennan. secretary about the north korea threat morgan, what did you hear? >> reporter: yeah, good morning, becky. so here the air force is taking the unusual step of testing off the shelf light attack aircraft from three contractors to see basically what is already available on the market. it is one of the ways the secretary of the air force, heather wilson, is looking to bolster the air force's readiness. as tensions escalate, she spoke with me about what is needed to keep america safe. >> this year's budget proposal, we've turned the corner on trying to restore the readiness of the air force the united states air force is too small for the missions that the nation is expecting of it. and as a result, we are stretched very thin. we have asked to increase the end strength in the united states air force but also putting money into immediate readiness and then medium and long-term modernization so that we're ready. >> reporter: so the air force has a huge shopping list that includes modernizati