steve grasso running away. is with us, yale university professor of economics, founder of the case-shiller index great to see you you just released his 13th book, called "narrative economics:how stories go viral and drive major economic events. here we are, at what may or may not be another economic event. you look at the numbers and before we get into it, what is your reaction? >> well, the unemployment rate seems to me to be the headline it is kind of an important boost there of confidence to see that we are at such a low unemployment rate. it looks hard to criticize trump's economic success but, of course, the unemployment rate is a fuzzy number depends on a person's willingness to be looking for a job. and i don't know if it is entirely comparable to 50 years ago. we have different thoughts about that now >> we have had a lot of people on the set this morning say this is a goldilocks number it is a bit of a choose your own adventure situation to some degree you also have the wage issue on the other end of i

steve grasso guy adami and jeff mills chief investment officer at brid more trust beginning with the story of the day stocks surge as president trump says we reached a substantial phase one deal with china but the market closing well off highs as the news came out. a tariffs will not go into effect on tuesday. huawei will be dealt with separately and the deal is not yet writtenups agreed upon in principle. let's get to kayla tausche live at the white house with all the details. kayla. >> melissa, the president saysis it's the first of a potentially three-phase deal he calls it substantial. he says it's bigger than previous iterations of the deal. and some of the items you mentioned were in it a pledge on currency transparency, a pledge by china to buy up to $50 billion in u.s. agricultural goods a tariff hike that was planned for october 15th will not be going forward. and the signaling from the trade representative ambassador robert lighthizer was that there will be many weeks between the signing of the phase one deal and the december 15th tariff hike or the december 15th consumer f

our guest this morning is steve grasso, a cnbc market analyst.u we are going to put you through the paces today talking about what happened. what is likely to come up today with the wild ride for stocks. the dow down 1,000 points this week check it out we were up 96 on monday,down 343 on tuesday, down

let's bring in cnbc contributor michael farr and steve grasso. gentlemen, welcome michael, where are you on the idea of another rate cut do we need it given the health of the economy that the president keeps saying is the best its ever been >> yeah, it's a bit of a mixed message that we have been getting out of the white house where this is the best economy we've ever been which is why we got to cut rates dramatically. i think steve's reporting, cover your years for a second because i really hate paying you compliments but your reporting has been really excellent and i think very insightful for cnbc viewers. steve is sending a message here that maybe they are going to pause. maybe this is a mid-sickle adjustment and we have seen short term volatility in this market but longer term stocks have marched higher. i think that trend in the path of least resistance is still higher you know the economic data are a bit more wobbly. >> steve, i'm looking at the dow today. it's up 21 points. the nasdaq up a third of a percent. everybody said one of the bric

minutes or so but a significant fall from where we opened up 129 points or so let's check in with steve grasso from stuart frankel who's joining for the full hour. steve, what is this? recession fears again or is it justified to see this slippage >> you know, it's funny, you know, i'm tempted to just jump onboard and say it's all recession fears. and then you have the first day of the month and then you have impeachment. and then you have trade. but definitely, this is recession fears, but i wouldn't read into it as much as everyone wants to you have the first day of the trading month, there's a lot of different rotation things at work >> energy, materials, industrials are the three worst-performing sectors they're all down more than 2%. >> all cyclical. >> cyclical manufacturing. it makes sense >> should you be buying some of the non-manufacturing sectors today? >> i think you have to wait until the market action clears just a bit, but i know there's a train of thought that you want to buy those cyclical-based companies that have been beaten up already, to deep, deep, deep valuation discounts

traders are tim seymour, karen finerman, dan nathan and steve grasso beginning with breaking news stocks slammed as a major selloff hits wall street the s&p 500 posting the biggest two-day drop since august. and the selling widespread all 11 sectors finishing in the red. so the question tonight is simple is it time to get worried, tim. >> the data seems to be getting worse. so we have important data coming up tomorrow and friday ism services and we want to believe this is the more important ism number as opposed to manufacturing number which got everybody spooked. this is a trade war that seems stob a manufacturing trade war to what extent we get that tomorrow it should be noted that last month's ism services was a very bullish number which had the markets reverse a two-tai plunge like the one we had when people thought okay here we go but you had adp showing the labor market could be -- if you look at the three-month average on jobs on adp down about 85,000 over the 12-in month but not much changing. >> karen you said last night you were getting worried you're more worried on a relative

karen finerman steve grasso guy adami. it's if the kids said last tring are drink of water now go to bed. we debate in tempered language starbucks gets a jolt from better sales of hom and abroad and bean counting. but we begin with apple and facebook both up about the same josh lipton is on apple. julia boorstin on facebook we start with you job. >> the a few metric i call ou iphone revenue better than expected at 33.4 billion-dollar. ive nef due 7% a sequential improvement q 23 down 12%. mac revenue a bit lighter than but wearables home and accessories better than expected at 6.5 billion and services revenue up 18%. also better than expected. 12.5 billion the q 1 forecast, mel, apple a.m. guiding between 85.5 and 89.5 the street at 87 billion one of the metric i call out china revenue down 2%. a sequential improvement in q 3. down about 4% before i did have the chance to catch you have with tim cook we talked about trends and themes. one the competition in video streaming. apple tv plus launching friday we now know that h

traders are tim seymour, karen finerman, dan nathan and steve grasso beginning with breaking news stocksmajor selloff hits wall street the s&p 500 posting the biggest two-day drop since august. and the selling widespread all 11 sectors finishing in the red. so the question tonight is simple is it time to get worried, tim. >> the data seems to be getting worse. so we have important data coming up tomorrow and friday ism services and we want to believe this is the more important ism number as opposed to manufacturing number which got everybody spooked.

karen finerman steve grasso guy adami.ast tring are drink of water now go to bed. we debate in tempered language starbucks gets a jolt from better sales of hom and abroad and bean counting. but we begin with apple and facebook both up about the same josh lipton is on apple. julia boorstin on facebook we start wit

health care and materials lead the charge joining us for the full hour, steve grasso from stuart frankel. steven, good afternoon to you. >> good afternoon, sir >> thanks for joining us we slipped the last hour or two, but why was that >> i think you hit it on the head it was about the trade headline. and we've had an enormous rally in the market. being as though we couldn't get above all-time highs, we popped above them so there's a high benchmark to keep us moving higher. we need better trade data or we need better trade progress fmoc tomorrow. and we also need to see earnings weech got earnings and any negative headline on trade is going to be perceived as a sell first, ask questions later. and that's what we saw today >> is that what's hurting apple? melissa mentioned it just down before handing over. was up a percent, record all-time highs down 2%. what's happening there >> i think it's silly to put that much into one headline that we saw today things are still moving forward and you heard the administration say, this doesn't mean that a trade deal is not moving or progressing forwar

steve grasso guy adami and jeff mills chief investment officer at brid more trust beginning with the surge as president trump says we reached a substantial phase one deal with china but the market closing well off highs as the news came out. a tariffs will not go into effect on tuesday. huawei will be dealt with separately and the deal is not yet writtenups agreed upon in principle. let's get to kayla tausche live at the white house with all the details. kayla. >> melissa, the president saysis it's the first of a potentiall

here in the u.s., but the imf did lower its global growth forecast joining us for the hour is steve grasso from stuart frankel you know, we hit these highs earlier in the session didn't hold on to it for very long what do you make of today's action >> we didn't hear about impeachment. we didn't hear about china trade, really. we haven't heard much about a lot of things, but we did hear mostly about were earnings so the market wants to get back to something that they can look at and say, it's binary. either services it was a win, it was a beat, they got it higher or lower and we're going to run with the market there. not enough to make new highs, but we're on our way there with earnings, i would guess. >> it is interesting to look at companies' fundamentals, actually push the trade headlines aside just a bit still hopeful, perhaps but let the day be run by earnings >> it's true everybody has been run by macro lately so two-thirds of all stocks trade with the overall market. so if there's a negative headwind, the overall market is going to go down, regardless of the fundamentals on that one