post midterm >> look at what it has done for united technology stock. is is what i am talking about, about selling into united tech at the opening you got 125 and now you get 129. listen, you want to go now this is a mark thatet that's reg to good news and it has not reacted to good news in days also, went up when gregg hayes talked about what some would appear to be the likelihood of potential split of that company once it completes it >> we had day after day. here is something -- split is a good thing and you can argue wait a second, that's new news i am coming back and saying i am seeing certain situations and stocks that have come down and come down and it is nothing new. what i feel is that people are saying wait a second, let the market rally i think that's reasonable. i am very, very negative about this mark. i am looking at mcdonald's up six. hey, we talked about the idea. people are saying wait, plus five so good companies that report good numbers are having stocks that go higher and that's an important thing. verizon, david, there is no break u

have reported so far during this earnings season so american express, verizon, mcdonald's, united technologies, johnson & johnson, jpmorgan, united health all reported sharply better than expected earnings ♪ hallelujah 3m and ibm were abysmal, although the latter seems to have bottomed here just as predicted last night what have we got nine good, oneok kay, -- one okay, two bad. i find that encouraging. how about you? because the tape acts so terribly nobody is willing to deal with the facts except for me because i'm bound by them not by the emotions. what else? i love it when a stock gets downgraded the semiconductor group rebounded dramatically after being hit with a downgrade now texas instruments after the close gave us tepid guidance, but let's see if the group doesn't bounce tomorrow. watch nvidia they need to hold say 214, 2 is a. i told you to sell it higher, but geez, it's getting interesting. all right, let's get to the heart of the matter. what continues to go on is a vicious pincher movement the feds are running a hard-line against the economy totally undeserved many fed leaders sa

mcdonald's, verizon and united technology.omberg. ♪ guy: 30 minutes left in the trading day. i'm guy johnson. vonnie: this is the european close on bloomberg markets. guy: here are the top stories we are covering from the bloomberg and around the world. stock selloff is continuing. corporate profits may have peaked. european equities finger lowest level since december's. turkish president erdogan rejecting saudi arabia's claims about the death of jamal khashoggi. he says the killing was meticulously planned. however he didn't come up with any evidence. and there's no plan b. the prime minister is saying he won't out to the eu's demand to rewrite its budget.

united technologies is one of the stocks in the green. company raised its profit forecast for the year. thathird quarter straight they have raised its outlook. for more, want to bring in brick southerly. both you tx and rockwell were positive earlier. it is clear this is a positive story. is it positive enough? brooke: i think it is. united technologies really strong today. there was weakness at the elevator business. barry -- they are having trouble off of that rising raw material costs. they do not have necessarily the pricing power is that they need there. longer cycle business which is harder to push through those pricing increases. across the board, their era space growth was part -- of their era space growth was impressive. the best since 2011. these are strong numbers. were almost an afterthought. everybody is looking at what happens at the rockwell collins acquisition does get approved? is unitedes, what technologies going to do with its portfolio? vonnie: right. that's the fascinating thing. doj has given an approval. we are wait

if it closes it could allowed united technologies to break itself up into three separate companies. otis elevator, climate control business anda aerospace which includes pratt & whitney really terrific company but the operative term in that sense is "if. the chinese have the ability to block it on antitrust grounds. s that is what china did rockwell had high ophopes it wod close by the end of september. that was up from 106 when we first got wind of it china hasn't approved it yet and the stock has shed a quick 12 points indicating that there's a tremendous amount of angst among the ashburbitrage community. get this, nxp's stock plunged from $127.50 where it was supposed to close -- it never got to there, 127. all the way down to $76. oh, man. with most of that coming because china blocked qualcomm from acquiring them i don't think rockwell collins will fall that hard. it will not be a picnic. at the same time united technology taking it on the chin because of the holdup in this transaction and as long as the chinese drag their feet it will make it less likely. it would unlock so mu

alix: united technologies are front and center. and a boostedt its low-end sales forecast for the year. the stock is up .4%. companies,industrial you have a house and have-nots. you have the big conglomerate guys are doing well. we will spend more time on industrials during the program. harley davidson had a big beat. the estimate was $.51. it was 3.7% better than analysts estimated. if the stock is up almost 5%. a lot of motorcycles are going out the door. alix: that will weigh on the stock market. you have the s&p futures a little bit off the lows of the session. this is a very good side for risk off. it started over in china despite actions from the government. it spread to europe. it's now continuing in the u.s. the euro-dollar is flat. it's a flight to safety. when it comes to bonds, it doesn't matter what it is, the yields are down by four basis points. crude is getting whacked. -- energy minister of saudi arabia speaking. there could be 2 million barrels of oil a day. david: it's time now for the morning brief. we're going t

since united technologies has housing exposure, chinese exposure, pass caterpillar should be tripping a link to china slowing. link to construction in this country slowing, living to mining, eh you look at how united rentals got annihilated. they got annihilated after reporting a solid quarter. more on that later it doesn't bode well mcdonald's on the other hand could be, yes, the son of procter & gamble eighth coiled spring it's a dynamite story about the return to growth in the u.s. all these guys are a fabulous executive. he is invigorating company sales with franchise pleasing numbers. they are important and with great technology and a lot of good, thoughtful ideas wednesday we hear from boeing. the area ro space industry is so strong, even some negatives about china, not that i expect any, can't derail this story i bet they will talk about the burgeoning service business. which like with apple has terrific margins and not to mention, of course, they have an insanely large backlog at boeing you want to see how time warner is doing don't you? i think they will regal us with the gre

china that seem to have scuttled a number of potential mergers by leading companies including united technologies and qualcomm. and turning to south asia a new report from the accounting firm price waters of pricewaterhouse coopers now branded as p w c finds that india is having a largely unheralded boom in burgers and acquisitions the report a joint project of see and the confederation of indian industry cites official figures and reputed private marsan as smart contract but right now because of the fact it's too slow it takes about twenty minutes thirty minutes sometimes for their contract to actually start all right now the practicality of its mass is actually kind of low so that's why in everyday usage repl is kind of better. and fine. christine what are you looking forward to coming up here in the last day or so the forbes under thirty summit in boston today is a day of excursions we have a lot of field trips outside of with a lot of the leaders here in boston so we have a trip to the t.d. garden to see how they're managing sports team and the latest technology for like training and sports t

earnings out from united technologies you'll see the dow futures are down by 258 points believe it or. we're going to watch this closely because the volatility is still here. but utx gets us into earnings season utx is the first of five dow components reporting profit of $1.93 a share. that comes in above estimates of $1.81. it's good for about a 50 cent pop right now with shares of utx. $126.90 is the last trade. you still have 3m, mcdonald's, k caterpillar to go. >>> arconic -- that would be worth between $23 and $24 a share. compared to yesterday's closing price of $21.25. still below that bid at $22 a share. and we've got some earnings just out from harley-davidson harley beating estimates with profits of 68 cents a share. revenue also beating estimates as well. obviously harley has been in the middle of all of these trade war talks about where it's going to be manufacturing its motorcycles and other vehicles but again, on this earnings report, better than expected news and a gain of 4.5%. >>> treasury secretary steven mnuchin met with the saudi crown prince yesterday mnuchin with

china that seem to have scuttled a number of potential mergers by leading companies including united technologies and qualcomm. and turning to south asia a new report from the accounting firm price waters of pricewaterhouse coopers now branded as p w c finds that india is having a largely unheralded boom in mergers and acquisitions the report a joint project of p w c and the confederation of indian industry cites official figures and reputed private analysts to conclude that the value of indian m. and a activity grew in the first quarter of fiscal year twenty nine nineteen at a rate ten times that of the same quarter in f y twenty zero twenty eighteen the authors also find any activity has accounted for a full twenty nine percent of foreign direct investment in india over the past ten years two of the biggest notable indian mergers will be familiar to boom bust viewers last month warren buffett invested estimated five hundred three hundred fifty million dollars to take a reported three to four percent stake in india's online payment platform paty m. and in may u.s. retail giant wal-mart spent six

biging behind some of their rivals like united technologies and honeywell.ore the report the credit analysis said they were trading to a triple d. >> a lot of that is priced in. on the front end of the curve spreads look tight. on the longer end of the curve they are trading wider relative to some of their triple b rivals by about 30 basis points. ge had talked a lot about their net debt target. relative to some of their rivals their average with companies are dan herne you tx, they way above some of the a rated peers. really interesting to see how they deal with the deleveraging. ourie: taylor riggs with stock of the hour. this hour it is general electric. thank you. 30 minutes until we close out the european markets for the session. doing a little bit better than some of the other markets. the dax had a tough day. the market i want to focus on his foot demand. .- is the ftse mid we will talk about that in the next hour. this is bloomberg. the closes next. -- the close is next. ♪ jonathan: 30 minutes left in the european trading day. from london, i'm guy jo

vonnie: united technologies was and jeto aircraft parts engines. where is that growth coming from?> i don't cover you tx. i would just say that you are seeing very strong aircraft demand from the aircraft leasing companies and the airlines. especially the asia-pacific airlines. european airlines. americans basically done. united. you're seeing pretty good strength in the boeing order books. try has that stock rated and outperformed for the demand that we see over the next five years. vonnie: our thanks to helene becker. from new york and london, this is bloomberg. ♪ vonnie: from new york, i'm vonnie quinn. guy: i'm guy johnson. this is the european close on bloomberg markets. the european commission has rejected the italian government's budget giving him three weeks to make a new plan to lower spending. saidtalian prime minister there is no plan b. available to the commissions. i'm looking to sit around the table to talk with them and to explain details. of course they're going to have to change the measures. it will be different for me because i cannot affect the. guy: let's go to

. >> what is the conference baided on do they know something about beijing. >> united technologies makehe chinese military >> it is a waiting game. >> yeah. >> investigators continue to wat for the collins deal and they're expected to split itself up. >> waiting for board's approval. >> they're still waiting for approval for the chinese it is not as situation like nxp but what i continue to come back to, i ask the same question that you do, does anybody know anything >> no, they don't want to know you are done i know you're done and you are going to get aprooufprovalapprol >> did you know what the kremlin is going to do the russian market were smaller than during the timeof stallin because they watched 20 million people in the works. you got to start thinking bipolar. >> speaking of bipolar paypal is up and ebay is down. >> it turns out -- because there is gmv trends in the paypal numbers that don't look particularly good for ebay >> cross quarter is lucrative for paypal 18% down to 11%. that's not reflective of how it may actually hurt may palpaypala little bit paypal every time you ru

and even united technologies and he has his eye set on starbucks. vonnie: exactly. how was that trick for he can move markets and it turns out that is about a 10% stake in terms of funds, it is $900 stake in starbucks. we'll continue to bring news and any thing -- anything else emerges from their conference in new york city. $900, 10% of his funds. coming up, indicate we look at the applications of nikki haley's resignation as the u.s. ambassador. this is bloomberg. ♪ vonnie: i am finally quinn. nikki haley making a surprise announcement. the u.s. ambassador announcing a long sign president trump she would leave her post by the end of the year. why she is stepping down amazing question. she was quick to rule out one theory. >> to all of you that a going to ask about 2020, no i am not running. i can promise i will be campaigning for this went. i look forward to supporting the president. vonnie: let's get context with cheap washington correspondent kevin cirelli. kevin, what is the consensus in washington. -- washington? she is not running for president at least. kevi

caterpillar for example out with earnings, 3m, united technologies citing headwinds from what has beenappening with the higher tariffs. when you look at auto makers, harley davidson, ford, b.m.w. all see tougher times ahead. the u.s. slapped tariffs on $250 billion worth of chinese imports and beijing has retaliated with duties of $110 billion of products in the u.s. and maybe we'll get an escalation. hopefully not, the start of next year. guys? rishaad: not exactly looking forward to the issues on both sides, pessimistic about the prospects for a deal between resident trump and x ping. what is the best hope really? obviously really lowering expectations? >> yeah, they are. larry kudlow the president's economic adviser said they'll be meeting for a bit on the sidelines at the g-20 late in november early december which already is not making a big deal out of it, for a bit on the sidelines. there have initially been hopes that maybe with both there they could start to talk more seriously about what to do about the trade situation, the escalating tariffs. but it looks like now they may be

is going to bottom is the verizoners and the pfizers and the second thing is something like united technologygs stock bottom. and now believe it or not, i studied these so many darn times and that has been, that has been the progression. so zuora, on the fourth day, they said it is okay to buy it it is scarey out there i am saying, listen, i am seeing some prices, maybe not in the 70s, but in other places where i say maybe it is time for buying. you may be tempted to piggy back and i wanted to sit with the ceo who has been there and donthe at to navigate tough times. and the edition of the lightening round stick with cramer. >>> brutal day, okay dow and s&p worst days since february so what is the best plan of attack when the market goes through a tail spin, you may be tempted to circle the wag begons. take companies like ppg, campbell soup and starbucks. meanwhile, bill ackman's persian square say they accumulated a stake in starbucks but listen, and no fault of these gentlemen, piggy backing is a mistake hedge fund managers don't work for you.% take campbell's soup, the company that would,

everything heads south it is united technologies, your 3ms. all of these global industrials. the second was fang, particularly fang and semi conductor names there had been stories about a new tax in the u.k. that had been weakening amazon was drooping going into the -- just after the open you can see the fang names as well today most of them down about 3, 4, 5% there has been a small group of beaten up names that have done well today retailers have held on very very well remember they had generally been down since the second quarter earnings the other would be autos and building related stocks. they too started getting picked on thursday and friday generally autos up today some of the home builders also up as well that's small group we are sitting near the lows of the day. >> what is amazing, it is hard to believe, half the douw is actually higher. >> that is on a very very specific story all of the aerospace stocks are down on that particular story. so we have a situation where anything where you can press the market now, even a head line like well if things don't go so well

united technologies shares are up 3/4 of 1% right now, 1 point higher at 127 and change.uestions this morning for saudi arabia. the president of turkey says the kingdom planned the murder of saudi journalist jamal khashoggi. he went further to condemn the saudi coverup. what it means for the u.s., saudi relations coming up this morning. caravan crisis, the massive group of illegal immigrants making their way toward the united states, president trump not happy about it, doubling down on his tough stance on immigration. >> and in that caravan you have some very bad people, you have some very bad people, and we can't let that happen to our country. maria: we have the very latest coming up this morning as the president continues to hit the campaign trail. plus, hurricane willa taking aim at mexico this morning, the category 4 storm is set to make landfall later today. we are tracking the storm's path and we'll bring you the details. all those stories coming up this tuesday morning. joining me in new york this morning, dagen mcdowell, james frejamesman with -- james freemn wit

mcdonald's verizon united technology all on tap today and that could certainly change the story as weet these numbers. this week you know forget the day-to-day even the week could be better. but caterpillar is really the story when it comes to trade. what do you make of that? >> caterpillar tremendously important and interestingly a lot of trade oriented stocks very real as of lates cheryl. ford yesterday just this week mentioning that the trade tariffs are costing their bottom line u.s. steel is now try prely expense nigh a third of the s&p have are mentioned that tariffs are impacting their bottom line they're keeping an eye on it. so it is one of the factors quickly again put it in some context we are inst of the longest bull market and bulls eventually die or tire this might be it for us. >> real quick before i let you go we're waiting to hear from one supposed to give us new details about et it of the journalist over there. do you think that saudi u.s. relationship is in jeopardy or markets really worried about that right now. >> it is another thing that is sapping liquidity and

but chinese authorities can hold up deals united technologies is a huge employer in china, indispensable for the chinese aircraft business so it might be rational for them to approve the deal. but maybe the chinese government wants to send a message that they mean business and block the deal you better believe that would hurt maybe they boycott apple who knows? but something we still need to consider, we have to keep in the back of our minds. at this point, when you listen to these conference calls, you here question after question of tariffs, as in how are the tariffs impacting you? and it's become quite dispirt i ing. as far as the white house is concerned, they have bigger fish to fry trump is feeding the chinese, he wants to be reagan he wants that wall torn down this time, though, it's a chinese wall but the soviet union was on its last legs in the '80s, while the prc is a rising world power. like it or not the fed chair refuses to acknowledge the damage the tariffs are doing. he's as oblivious as the president. the president wants the fed to be more accommodating. you know what? he

caterpillar moved up, united technologies moved up, 3m moved up this is associated with these three orr names. other industrial stocks that moved up, tended to move up. fluor, deere moved positive as well the banks, we talked about this this morning, a number of reasons, not a lot of loan growth, flat yield curve morgan stanley, 52 week low for them most important thing, q3 earnings may hit 25% 20% plus earnings the last three quarters, haven't seen that in a long time, and it is not just tax cuts only a third of that 21% is due to tax cuts. we're getting close to 8 and 10% revenue growth that's powering the market, firing on all cylinders. back to you. >>> amazon is raising minimum wage for all u.s. based employees to $15 an hour new wages benefit more than 250,000 amazon employees this includes part time and temporary workers. joining us with what it means for the stock, jeffries analyst brent phil i asked dave clark how much is this going to cost amazon, he said we're going to talk about that in our earnings call, but it suggests to me maybe it's not material or wouldn't they have t

united technologies move up. put it together, that was about 70% of the dow >> you heard mentioned about the retailers this week, we saw a number of these stocks down 3, 4% today >> i think this is probably related to amazon raising that minimum wage to $15. that could put a lot of pressure on these retailers that tend to pay lower wages. banks doing nothing today again. i've been gone for 10 days, banks were straight down since they were, that's a new 52 week low for morgan stanley all the regional banks are weak, city group, we've been talking about this for a while banks are not getting any energy at all we have a problem with the flat yield curve. the upper end isn't doing anything, that's not going anywhere that's not helping we've seen deposit costs higher for them >> jerome powell speaking this weekend up in boston, we're going to go there as soon as the q & a begins, the u.s. economy looks very good. and forecasters have a remarkably positive outlook. he expects the low unemployment rate to continue let's

the afist fund is up 16% president ac annual he is publicly disclosed of investment you nike united technologies a lowes and starbucks have been followed by very little saber rattling by the investor billionaire. we haven't seen the 300-page powerpoints, 3-kour kvs o conference calls or proxy fights. today's presentation on starbucks was complimentary toward management and the strategy saying they are taking the right steps to boost the same store company sales and the stock is poised to double in three years. it doesn't appear there will shall much fighting between starbucks abper shalling for their pennsylvania part starbucks looks forward to a productive dloeg as with all shareholders to be sure, a source tells me this will not be the end of activism at per shalling square. but for now keeping focus ds on fundamental stock pick something in focus for the firm, the source says. the starbucks stake, $15.2 million share was revealed at of an investor conference closed to press. however i'm told by someone in attendance that ackman gave the presentation with the starbucks drink in his hand. >> wh

morning, expecting $100 million head wind from tariffs but pricing will offset that similar story united technologiesecifically in the otis elevator segment. they say costs are outpacing price. they had this gang buster aerospace report, that seems to be offsetting head winds in otis elevator last year specific saw big runups in stocks, big earning beats, saw big outlook raises throughout the year. it has been a slightly different story this year, and perhaps some of the valuations have gone out and you're seeing dramatic selloffs, particularly in cat and 3m. >> worst day for cat since '09 >> big move for the stock. >> we are watching the raft of fed speakers, including voting members. >> carl, one down, four more to go minneapolis fed president did not talk about rates or the economy in his speech this morning, but we're waiting to hear from the fed president f atlanta, dallas, chicago, kansas city investors will be paying close attention to charlie evans one of the fed's biggest doves he is going to argue because expectations are low, the fed won't have to raise rates as much we will watch to see i

and the dow's busy, busy session of the lows, dragged down by shares of 3m, caterpillar and united technologies. ashley, isn't great to have volatility back? >> it is although you need pepto bismol, susan. volatility is down a little bit, 3.20, that settled things a little but still concerns out there about some global growth. as you can see, there it is 3.20 on the 10-year-year-old, down two basis points, but still the market a little spooked. i want to look at tech stocks if we can. you can see the dow there. tech stocks mostly higher after three days of selling. that was encouraging. as you can see, just alphabet google down. they continue to have their problems. now more scrutiny of that google plus data exposure but for the most part the tech stocks turning it around. i wanted to mention the airlines. american airlines putting out a warning saying higher fuel costs will eat away at any gains they make in revenues. stock is down 6 1/2%. other airline stocks are down 2% or more today. >>> walmart to buy from hold by deutsche bank. sales are better than expected. also -- susan: get to break n

. >> the justice department is giving approval for the takeover of united technologies buying rockwell under the stipulation that they sell two of their aerospace businesses. reuters is reporting it. back to you, melissa. >> thanks, eric. >>> love chevron on valuation alone. >> karen >> ge is the way to go i know exactly what i'm going to risk january 20 leaps. >> electronic, underperformed and will outperform the next two months. >> guy >> bitcoin being sort of the beta tell. >> "mad money" starts right now. higher "mad money" starts right now >>> my mission is simple, to make you money i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. "mad money" starts now >>> hey, i'm cramer. welcome to "mad money. welcome to cramerica other people want to make friends. i'm just trying to save you some money. my job is not just to entertain but to educate and teach you so call me at 1-800-743-cnbc or tweet me @jimcramer. >>> saved. the bulls got saved again. ever since the market bottoms over a decade ago, goo

. >> did they get a gift in united technologies that opened at 125 and change and is above 128? >> honeywell, caterpillar, united rentals, lockheed martin, northrop grumman had strong fundamentals but sold off anyway 3m terrible. >> cramer said, and i quote, it was atrocious execution. >> it absolutely, positively was. this is the second quarter in a row the ceo has done this. i get that textron missed some of the others are throwing everything out and that's why i'm saying go back to fundamentals stay calm, pick your prices. they will rally back when the market calms itself down >> and the reason -- >> in the process of trying to do that. >> the reason the stocks get sold down is investors are saying we think there's a recession starting right now caterpillar -- >> 115 times earnings? wow. >> a way of saying we don't think they'll earn $13 a share next year. we think they'll earn $6 it's a referendum. >> i'll get your thought right after this break i know you have a good one michael farr, options traders betting against one stock seeing a slide of 8% in one month unusual activit

tariff issues so a second sector show the industrials here and you've got boeing, caterpillar, united technologies, all down we're debating whornt value will come back. should we buy consumer staples now that's been out of favor for a long time. you see some of these defensive names. these names are up here so the market is acting in a rational way if you understand the transition from low growth, low yield to higher growth, higher yield. >> i think the market investors would be very comfortable with that you make this uneasy piece with a higher threshold of yields if they were persuaded the high growth would be sustainable. that's what i think you're seeing here when you see housing, auto, material stocks this idea that there's a little more friction in the world economy because of trade and currency stuff, i think that's what's kind of knocking people back a little bit. also, though, just context wise, the s&p is now down 3% from it's closing high it seems like a catch down move to the average stock and small cap stocks which have been suffering quietly or less quietly recently with greater loss

with stocks now near session lows names like general electric, boeing, general dynamics, and united technologies down about 1% to 2% on the day. and keep in mind, this is a sector that is now close to entering correction territory. you are also pointing out that the airlines once again under pressure today despite the drop in oil prices. remember brent crude has traded down in six out of the last seven trading sessions american, united, and southwest now all trading in negative territory. another pocket of weak ness are the financials keep an eye on that sector >> will do thank you very much. let's go back to this because we're talking about the airlines in some respects and we've talked about some of the other industrials. and oil. mentioned oil being down oil could go below $70 again today. what about chevron chevron is one of the biggest dow losers down 6% you know, that stock got upgraded recently. there was talk that big oil was back i've had picks on this desk in the last week or so. where are we today >> i don't really see the case for owning big oil if you have a positive view on energy,

caterpillar, united technologies were all strong.e elated names look at these numbers here all down4, 5, 6, 7% overall. >> the u.s. banks pull back a little bit >> they may be raising rates on the short end. the yield is slightly climbing up >> there we go thanks very much the dow record all time low since the 21st of september. 26780 the level there. nasdaq down a bit. russell down 4%. that does it for the first hour of the closing bell. back to you. >> and welcome to the closing bell join us in just a moment here is how we are finishing up the day on wall street a new record close for the dow jones industrial average it closed up more than 100 points it did hit a record high on the close. first time we have seen that since september 21st some of the games were lost and it closed just around the flat line nasdaq has lagged. the nasdaq set a record high yesterday. there is your record high update the russell 2000 continues to suffer down 1% we'll talk about that in a moment >>> shares of amazon did finish the day lower after the comp

that's why you now see united technologies, intel, nvidia, advanced microdevices moving lower. texas instruments still saying our products aren't directly affected by tariffs. hard to really wrap your mind around that because this sector is particularly reliant on profits from china. okay. moving on. we have got so much to tell you at the moment and the dow continues to fall, down about 345 points at the very moment. what do we have here? we can also look at the fact that the transports are really starting to fall. then you've got the domino effect. even boeing couldn't save the dow jones industrials after blowout results this morning. they upgraded their full year 2018 guidance and that stock, while up 2.5%, is sort of this one beacon of positivity in the dow jones industrials, and let's stretch it out to the s&p 500. of those 500 stocks, 119 of them are now in bear market territory. 119 of them. that means bear market, down more than 20% from their recent highs. that's a lot. we've got some big names in correction territory. amazon, alphabet, jpmorgan, throw in exxonmobil whi

png is talking about it, and even united technologies. david: yeah. 4%. i am not worried about that. i am worried about 8%, 10%. these guys don't have the pricing power. deregulation has brought in competition. be abley would love to to raise those prices, and maybe this will be an excuse with trade, but global aggregate demand? it is not ripping out of europe. we had some pretty weak pmi data. a.m. still soft, and will probably stay soft. the stronger dollar is just going to keep prices in check. that means we are on pace for a fed pause that is not going to come with an over tightening at this cycle. ll sort of powe insinuated, which i think was a huge slip of the tongue. let's talk about m&a. these kinds of m&a transactions are reason to think there is a top? thingsit is one of those we waited for for a long time, and we finally got more of it in recent history. for theetty good sign disinflationary themes we have been pushing. -- it ist coming, cost-cutting, it is a way to maintain cost structure a little bit better. i think it is not a sign that it i

united technologies. bill ackman wants to break up the company, a huge advocate for that.a new position lowes as he tries to improve the company's performance. also they are taking money off the table, a soul position with nike. about $100vocacy, million. there is a sale for part of a stake in chipotle. 7.4% is the stake they now have. looking ahead, it seems bill ackman is on track to make his investors quite happy. haidi: let's take a look at some of the stories trending across the bloomberg universe. goldman lost another senior executive. terminal subscribers are reading all about the departure of a top sifixed income salesman. more on the china chip hack story, this time with new evidence. over on tictoc, we are watching australian's potential breakthrough in eliminating cervical cancer. do check of those stories, online on bloomberg or the terminal. ♪ shery: breaking news on the bloomberg. japan's machine orders beating estimates for august, core orders raising month on month. the estimate was for a decline of 3.9%. it is still at a slower pace than in july, when it j

united technologies and general electric is trading higher, proctor & gamble.le stocks provide a lot of yields trying to look for money and safety in this environment. stuart: brian wesbury is on the phone. brian is on economist. not specifically a stock market watcher. brian has always been very positive about the economy. always say we're heading towards a very strong growth rate and i believe you made the comment, brian, we're headed towards new highs for the dow industrials. so how do you feel about the market right now, brian wesbury? time to pull in your horns and take some money off the table? >> i don't think so, stuart. you know corrections, they're not designed isn't the perfect word but they're designed to shake stocks, shakin' investments out of weak hands, move them into strong hands. in other words to those people who believe the economy will continue to grow and i'm one of those. i believe the odds of recession in 2019 are virtually nil. the federal reserve is a long way from being tight. tax cuts and deregulation are in place. would i argue, one

>> are these worries overblown especially when you get things like united technologies making comments that yes, maybe there is potentially slowing but they are not seeing it? >> i think they are not overblown. if you look at the trade wars it will be an extended trade war here for us what we have done and we think it is a place that we have actually pulled out of our shorter time because of china's slowing, because of interest rates rising and because of just the trade wars in general. so i think that, you you know, it makes sense for people to be concerned about the trade wars and, you know, the effect they will have as far as inflation down the road. >> do you think it is a reason for people to buy earlier this morning or there is not that much support from evaluations? >> i personally think evaluations are pretty high. i think there's a lot of people looking at forward pe's. some i have seen as high as 180. i just think we'll continue to have problems with a 3.7% unemployment rate with growth pushing up cost. that is labor as well as capital costs. it will keep the fed in position

that would be terrible it is like united technology how are they going to holdup that deal. logy is so many people work in china. >> we'll talk more about what cook said in brussels, tim cook, recording privacy that was published a couple of weeks ago and he called it 100% lies and went on, and as privacy remains the old concern. at the big board is hewett-pakard and we'll be watching boeing for sure and commercial reservenue is up one. it is a defense of space and security at 18 that helped the quarter and in terms of their revenue guidance, they're looking at potentially at $100 billion for reserve new for the year >> you got to be proud of them they have this fabulous service screen that's making them a lot of money there is no sensation. this is worldwide travel the futures could give up the ghost here because a lot of people are just incredible decline at texas instrument. we have not mention the complete give up in the bank stocks a lot of that may be, we are getting the snow curve, if we are seeing the highs of the year for interest rates notice oil is going down happy

. >> is united technologies going to get approval?approval for fox in china those are two key deals. you would think one was on the heels of another there's no antitrust in any of these deals and you saw rockwell was approved in the u.s. and cigna got approved so there is rationality as far as things getting approved but there's overall unpredictability which came from the whole blocking of the broadcom deal. >> but that unpredictment is not stopping people from having people do big things including cross border >> the unpredictability may cause people to try things that were viewed as more difficult in the past t-mobile/sprint, no one would have tried that in the prior administration. >> well, they did and it failed? >> they never got anywhere in it they didn't even get to a signed deal here i think the view is that in this stragsz it's less predictable, maybe more commercially focused so people may be trying things they may have not tried before. >> that sounds hopeful for interesting stuff. that continues to play an important role

united technologies said, quote, i would expect the pricing will also have to increase next year if these all gets passed on to the consumer in one four another leggett & platt says, quote, waiting to see if in fact tariffs will go up 25% at the end of the year. we're fully prepared to act immediately. it's not a cost anybody can avoid if it comes to be. so 45% of companies mentioned it in a negative way. most of the positive, five, came from companies bettering results because customers pulled forward business in order to beat tariffs. in a separate survey, the national association for business economics finding that 77% of companies have not changed their business in response to tariffs. 23% had and most were negative look at some of the highlights of those responses 13% delayed investments -- sorry, raised prices 10,% delayed investment 4% accelerated investments and 4% delayed hiring. a lot of the negative tariff affects are reported by goods producers. about half raised prices and about 40% delayed their investments. sara >> steve, interesting, those who were producing goods here, im

caterpillar and united technology. we will keep an eye on that.he stocks in one direction or another. the sox went higher when the opening bell rang this morning. it quickly turned negative. right now it is bouncing back a little bit. a little bit of up and down. let's look at the numbers right now. taking you to the big board. the dow jones is up a little bit. less than a point. 29,445, just about flat. the s&p 500 is about the same. nasdaq is 75.09, hanging down dishman onto the 7500. facebook is reeling from a recent hack that exposed 29 million users. it is reportedly planning to buy a cyber security company. according to the industry website, the information, facebook has offered deals to several companies. analysts say that the purchase would signal that facebook is serious about upgrading security and that they will buy a software company that could fold into existing services such as tools for flagging hacking attempts or securing individual accounts. >>> elon musk getting closer to making his project a reality. he says that the company wi

approve deals as another weapon in this ongoing war between our countries specific to approval of united technologies rockwell-collins or even disney's acquisition of those fox assets do you have a sense for whether that's a possibility or a view on how those deals are going to fare with the chinese regulators as they await approval >> well, i don't think it's appropriate for me to comment on acquisitions that are pending before another country's regulatory authorities i was surprised when the chinese vetoed the qualcomm acquisition of nxp because that had been approved by quite a few other countries and china was the only one who turned it down now the chinese say that was not related to trade disputes but you never know all i know is everybody else approved it and they turned it down >> and specific to china overall and where things stand in terms of the possibility of continued negotiations, i'm seeing something on the wires just now from larry kudlow, the economic adviser, saying china hasn't responded yet to u.s. requests over trade and talks is that your understanding as well is there a continu

pulled forward business to beat tariffs 14% mentioning tariffs in a mutual way here's what united technologiesct pricing would also have to increase next year if these tariffs remain in place. it all gets passed on to the consumer in one form or another. and here's harley davidson, a well-known issue with tariffs. in total we now expect to occur 33 to $38 million of increased costs related to tariffs in 2018 in a separate survey out today the national association for business economics finding that 77% of companies say they have not changed their businesses in response that leaves 25% that have and most of those were negative. you can see on the next screen here i have to go over to this side here 13% raised their prices and 10% delayed investment and 14% accelerated and 14% delayed hiring most of the negative tariff reported by goods producers half raising prices 38% delaying investments. back to you. >> all right, steve, thank you very much for those numbers. >>> so, while a slew, a slew of companies are already seeing negative impact from tariffs, kevin hast, the chairman of the council of

. >>> industrial stocks among the biggest culprits in th sell-off 3m united technologies and caterpillar, look at that, down 25% in just one month, the worst performer in the dow trade and tariffs weighing on those companies, but also higher material costs and the tight labor market we'll talk to a manufacturing ceo, next. >>> but as industrials have struggled, utilities have been the best performing sector is a 3% dividend yield suddenly sexy >> huh. >> "power lunch" will be right back checkout is at 4pm. plenty of time to enjoy your ride. (bicycle bell sound) ♪ ♪ (bicycle bell sound) ♪ (bicycle bell sound) ♪ ♪ explore more with a guaranteed 4pm checkout at over 1,000 fine hotels and resorts. it's another way we've got your back. ♪ ♪ the platinum card from american express. don't live life without it. >>> industrials one of the worst performing sectors in the s&p 500, down 11% in just a month. this industry caught in the middle of trade turmoil as the president aims to bring manufacturing jobs back to the u.s. elon mowie is at a factory in gibsonton, florida. >> this is one of the newes

united technologies trailed again today. rium medical was a big winner but dxc technology lagged. how did the selloff feel to you? >> it accelerated and it was definitely not indiscriminate. and i don't mean that in a positive way it was not everybody saying absolutely sell everything it was basically levels giving way. we actually stretched the down side a little bit of this move to the early year lows and i think that that will be where we'll have to start the conversation and say what has changed since then it has been a derating of stocks for a long time. basically investors unwilling to pay up for tomorrow's earnings and that has been the story for eight months it is not good to close on the lows that being said, i do think that it is a net positive that you finally got some of the glamour stocks that everyone thought could be bulletproof through almost anything. it really got hit hard >> faang has collapsed >> yeah. >> and we're negative for the two major indices. all year we've been saying europe down 10%, asia down 20

we're concentrating on qatar pil sxr 3m just want to note mcdonald's beat, good domestic comps, united technology they're all trading up verizon affirmed you'll hear more from pulte from diana about their numbers but not bad at all bank earnings something happening today i haven't seen the whole time they report decent numbers, these three big regionals and they didn't drop it's been an absolute disaster since skrorng. that was on the 12th jpmorgan had terrific numbers but it's down 6% and today it was right near a 52-week low finally bounced around 103 at the bottom this is jpmorgan now moving to the up side. the important thing here is when is the bottom? when i see jpmorgan really starting to move aggressively up and it gets back to where it was before its earnings, 109d, 110, somewhere around there, then i'll start talking about i definite bottom. not yet but getting there. back to you. >> robert, thank you very much let's move on to housing pulte group, bucking the down trend. and rallying today up 8% on earnings. diana olick live in washington with more. hi, di >> you're right. pulte beat e

stock that is contributing the most to the dow's losses today united health, goldman sachs, united technologies. those are the three that are "power lunch" will be right back we opened our doors with 70-megawatts, 35 mules, and an ice plant. but we brought power to the people- redefining what that meant from one era to the next. over 90 years later we continue to build as one of the nation's largest investors in infrastructure. we don't just help power the american dream. we're part of it. this is our era. this is america's energy era. nextera energy >>> cramer saying this morning, "we're going to see more and more bad earnings because 5% mortgage is the end. that is the line in the sand diana olick joins us more with the impact of rising rates hi, di >> hi, ty. it's the combination of rising mortgage rates and overheated home price that's have slammed affordability. take a look at rising home prices in the past two years, passing the last price peak from the housing boom, all because of the supply shortage. now the price gains are starting to shrink, but that was before rates jumped affordabil

we know about harley, 3m, united technology, so different industry is getting affected. higher costs because of tariffs affect earnings which affect margins and affect stock prices. connell: other thing currency adjustment. we talked about the last few days. the strong dollar comes up in a lot of these conference calls. >> it is true. a lot of negatives out there as i said before. consumer spending in the gdp report, 4% growth coming from consumers which bodes well for christmas which will be important, for sales there. everybody is worried about amazon. revenue wasn't what we expected but i have to tell you look at the earnings, it is funny one of those cases where the same set of facts read postively and negatively depending on sentiment generally. >> amazon, overloved, overleveraged, basically priced to perfection, you come out with guidance was markedly lower than expectations this is what we're seeing. amazon is down 20% from the highs. up 80% from last year. it is still way up there. connell: are you seeing this as phase, nine 1/2 year bull market we needed somethi

of health care technology unit could raise $2 billion.ess provides platforms used by hospitals, insurers and pharmacies, and we are told the listing could come sometime next year. softbank'sncluded vision fund. it's: nomura says underperforming european armed need to shake contributing to wider losses in the last order. the cfo said he intends to reduce the unit to an appropriate size after the business lost $102 million in the three months through september. japan's against brokerage posted a rare net loss from year earlier. paul: bank of japan is sticking with it yield curve control policy as it tinkers to improve sustainability. kathleen hays here with the details. let's start with governor kuroda's press conference. it's pretty clear the policy is not changing anytime soon. kathleen: there may be tweaks and conjecture and speculation about how those tweaks could lead to an eventual pulling away from all the stimulus, but not yet. thernor kuroda underscored biggest picture has not changed from an other words, they've made some progress