Known name to mall goers files for bankruptcy its monday, september 30th and Worldwide Exchange begins right now. 5 00 a. M. , good morning, good afternoon, or good evening and welcome from wherever in the world you may be watching. Im Brian Sullivan thank you for being with us here on cnbc. This hash a pretty decent month for stocks, not great but decent the dow was up 1. 5 coming into this morning doesnt sound good, but keep in mind september historically the worst month of the year for stocks and we could add to those gains here we are seeing dow futures up 95 points today s p and nasdaq also higher at the moment in the asia markets, green on the screen there as well lets get a check there. You can see japan fell but the hang seng in hong kong thats relevant because of the protests Hong Kong Market continuing its march higher despite what is happening now for 17 straight weeks. And in the european markets, again, not a huge trend this morning. There we go. Lets bring the european markets up you can see a mixed bag here waiting on data points to get things moving. Mixed trade there. Meantime, on a macro level, the u. S. china trade fights continues now for a year and a half to dominate the Global Markets. Now, on friday, stocks dropped amid reports that the white house is considering limiting American Investment into Chinese Companies. Eunice yoon from washington with the latest here. Eunice here i am in beijing, brian but it was a really rare move the Foreign Ministry actually reacted to the comments in the reports that appear to be happening out of the Trump Administration saying that any decoupling of china and the u. S. Would harm both sides and cause instability in Global Markets. Now, analysts here have been talking about this and saying that if the Trump Administration did go ahead with this move, it wouldnt necessarily be so harmful to the Chinese Foreign investors more broadly dont have a very big role in the chinese stock markets here and then on top of that, beijing has been really pushing its own markets as an attractive place for Chinese Companies to list. And if you remember, only recently that china launched its own nasdaqstyle exchange. So, separate to that, we also had some Economic Data out, the pmi both the private one as well as the official. Both of them looked relatively good, some modest improvement for the most part, new orders swung back to growth the private survey, showed that factory activity grew at a 19 month high and all of this coming just ahead of a massive celebration that were expecting to have tomorrow, october 1st, when president xi jinping is making a big address to the nation you know, sorry about that, eunice i just thought i hoped you were in washington but then you would be closer and just take the train up and come see see how i just backed out of my own mistake. Any way, tomorrow obviously 70 years of communist party rule. How big of a holiday is this expected to be in china . Reporter well, this is a really big event actually the celebrations even started today. So president xi jinping with with some other tom commune kais Party Leaders at Tiananmen Square he laid a wreath to commemorate and memorialize some of the past heroes of chi that, but the big festivities will take place tomorrow part of that is going to be a massive military hardware parade here in beijing and along with that, a big party for the communist party in the evening and its a way that the communist party is using it to really market its own achievements so, theyre talking a lot about how china has been so successful under communist party rule, but you mentioned washington the parade here is not like what you would see in washington. There arent going to be a Million People on the mall you know, eating hot dogs per se if it was july 4th instead the Public Participation has been heavily restricted. In beijing, large parts of city will be shut down. We just to a personal anecdote, our office oversees the parade route. And we are not allowed to open the windows. Were not allowed to go on to the balcony and i think its a way it really just goes to show how sensitive the government is about some would say paranoid about anything going wrong, anything that could be potentially embarrassing for the government. They just want to make sure that its totally orchestrated and nothing goes off script. Brian . Youre not allowed to open the window no. No we were even told that we were going to have to not we wont be able to use the elevator in our building, so we have to walk up eight flights of stairs its very extreme. Theyre nervous about it not sure how i connect the elevator in our building to the Chinese National day parade, hey, its their parade and they can do what they want apparently eunice yoon, wear track shoes tomorrow thank you very much in beijing. Its a big week. Its a big rest of the year ahead for investors, of course, we close out the Third Quarter today. You get a little bit of data but then of course on friday you get the monthly jobs number. Still, lets bring in global chief Investment Officer at ubs Wealth Management and mark is my officially guest of the week and also my first guest of the week because any man who references the classic apocalypse now movie in their latest Research Note is okay by us you talk about helicopter money. What do you mean by that and what are your concerns right now, mark . Well, thank you for that wonderful opening. Ive got to say, youre my favorite host starting with the g r this week. Wonderful. Nice. So, look, i think what were referring to is the press conference with mario draghi where he was asked about helicopter money in europe and he said that is a fiscal matter. That is one for the politicians. Although i think that fiscal policy is needed and hes followed up on those comments about what he thinks it will take for europe to move their economy ahead. And its not based on Monetary Policy and so what were saying broadly is that Monetary Policy now can help us on the downside, probably prevent Something Like a recession. But for the upside for risk assets, the upside for equities, we are going to probably need some fiscal stimulus or better data to drive returns from here after a great year well, whats interesting and by the way thank you for that, mark whats interesting is that globally youre recommending an underweight on stocks, but theres a caveat, you believe the United States equity market will do proportionally better than other places from a stock perspective. So does that mean you expect us to fall less or do you think the u. S. Markets can still gain more well, i think broadly around here may be flat, slightly up. But you know maybe a little down not kind of lackluster. Where we would put our overweights right now is on credit and getting some yield. We still see a tremendous demand for yield from our clients so on a risk reward basis, we would like to clip some coupons into the end of the year until we see either the Economic Data improving or we do get a trade deal thats why i think you have to hesitate on what the equity markets are going to do because we acknowledge that if we do get a trade deal then the picture looks somewhat different. Well, where can we find yield right now . I think thats the great Scavenger Hunt globally, mark. There was an article in the wall street journal yesterday how some high end clients are buying things like cocoa and butter futures anything you can do generate any kind of return where are you guys at ubs seeing that right now yeah. Well, we would point investors to tips. We would also look at u. S. Dollar denominated emerging market sovereign bonds having a yield pickup and then also to a basket of em currencies have a higher yield than some develop market currencies so youre right that investors are looking more globally for yield even in the United States. Yeah. You also recommend we havent heard this much at all, mark, something called tips. Im not talking about what you leave at a restaurant. Im talking about treasuryinflation protected securities now, what i know about tips is this, is that theyre safe when inflation goes up. They can gain a little, but youre not going to ever get a big return on tips does that kind of sort oif guess from a 30,000 foot perspective sort of sum up what youre talking about here, take what you can get type of return market i think that it is a market not just over the near term but over the medium term where investors are going to probably have to accept lower yields and lower returns because some of the fiscal stimulus that we saw after the u. S. Tax cuts has come out. The very low yields on debt globally mean that weve taken weve take an lot of the returns forward now, pushed by the fact that discount rates have fallen already. They probably cant fall that much further mark, out of ubs out in zurich switzerland, perfect time have a great week. See you soon thank you. When we come back, Hong Kong Police clashing with protesters now for the 17th straight week latest unrest coming ahead of Chinas National Day well show you more of the video. Plus a major fire breaking out at a new multibillion dollar train station in saudi arabia. Well tell you why there are more questions than answers about that this morning. Later, the House Intel Committee says it has reached a deal to have the trump ukraine whistleblower testify likely this week. What investors need to know about this big political story when Worldwide Exchange returns right after this servicenow put our workflows in the cloud. This changes everything. Youre right sir. Everything. No not everything, i mean youre still blatantly sucking up to me gary. Brilliantly observed, sir. Always three steps ahead. Six steps ahead. Sixteen. So many steps. You done . A million steps ahead. Servicenow. Works for you. Good morning and welcome back it is 5 14 a. M. Here 5 14 p. M. There in hong kong well, there may have been more protests there over the weekend. Well get to that in a minute, but that did not stop markets from running and new buyers to find an ipo. Shares of beer maker ab inbev the old budweiser bush raising on its second day of trading this is the second largest ipo in the year behind uber. Its a major test of informser sentiment amid those protests in hong kong. If so, it apparently passed with relatively good grades. But it was not all good news from hong kong protests there taking place for a 17th straight weekend and once again they turned violent as protesters and demonstrators clashed. We are live with more from hong kong reporter good morning, brian. So once again we saw one of the fiercest urban street battles i should say between the protesters and police this past weekend. And certainly an ominous setup for National Day Celebrations for beijing tomorrow, by the way. And of course, you know, beijings celebrating that occasion and a lot of hong kong protesters are saying that theyre going to mourn that part of occasion. So of course what youre looking on in some of the video footage certainly goes to show how the protesters are not really coming down in their intensity. We saw some of the hard core protesters setting on fire the entrance of major mtr stations a lot of anger have been directed toward mtr operators because some of the protesters suspected that they the operator is actually colluding with the Hong Kong Government. So thats really the mood of the weekend in the leadup to this celebration. And what youre looking at behind me is the traditional venue for the Handover Ceremony as well as national day ceremony, but a lot of elements of tomorrows celebrations have been scaled down chief executive carry lam will be in beijing for the ceremony the fireworks have been cancelled because of the mood of hong kong and also the flagraising ceremony scheduled for tomorrow is going to be moved indoors, basically guests will be watching that event flag raising ceremony on a screen brian . Chery, we talked about it a couple weeks ago when we were there, but what are the protesters still asking for. They have their five big demands. Have they shifted . Theyre still looking for the same things they were a couple months ago and theyre determined to get it reporter not at all. They are asking for five they got one but theyre not backing down, saying no less not one less demand here. And you know, when you look at the demands, Something Like duel universal suffrage some outside of hong kong may think this is about independence its a tiny majority its about having a Hong Kong Government that cares about and represents the people of hong kong thats really the main idea here Going Forward, driving this protest. And i think there is that sense of a frustration or anger towards police because they feel like the police is not really on their side and rather working for the government to really clamp down on this protest when it comes to, of course, Chinese Government versus hong kong people and hong kong protests, i think they want the Chinese Government as well as the Hong Kong Government to really accept this idea that hong kong, yes, perhaps it is a china, part of china, but it is a different part of china. Brian . Chery in hong kong. Thank you very much. On deck, videos you have to see. A massive fire burning down a brand new multibillion dollar rail station in saudi arabia later from saudi, back to hong kong and beijing and washington were going to talk about all the mornings biggest stories with a chair of the Financial Times u. S. Editorial board gillian tett were back on worldwide exchgerit tethan ghafr is so. How are you feeling . On a scale of one to five . One to five . Its more like five million. Theres everything from happy to extremely happy. Theres also angry. Im really angry clive actually, really angry. Thank you. But what if your business could understand what your customers are feeling. And then do something about it. Turn problems into opportunities. Thanks drone. Customers into fanatics change the whole experience. Alright who wants to go again . I do i do i have a really good feeling about this. Think you need to pay prestige prices for better skin results . Try Olay Regenerist. 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First off, check out this video after a fire breaking out at a new high speed rail station in the coastal city of jeda that fire was brought under control after 12 hours, but most of the station was destroyed now, this is part of a 280 mile railway that links the two holist cities in islam with the red sea city of jeda now, this station was opened last year. It cost more than 7 billion to build. And the rail link was part of the key part of the kings vision 2030 economic plan. In other news, also from jeda, the personal body guard of king solomon was shot and killed yesterday. State run medimmediat media says involved in a personal dispute and was shot at home the deceased was not just a body guard, he was also one of the highest ranking generals in saudi arabia that is not all for the kingdom. Crown Prince Mohammed bin solomon is blaming iran for the attacks on Saudi Oil Fields earlier this month here is mbs on 60 minutes reque request. No sound bites one of the things he said is he thought oil prices could skyrocket in the next couple months and years if the situation with iran does not calm down. But he did say he prefers a peaceful solution and warned that a military confrontation could even collapse the global economy. Coming up, the anonymous whistleblower at the center of ukraines probe is now likely to testify before the House Intelligence Committee as soon as this week but dont expect to learn his identity and then, snow now . An early fall storm pounding the rockies. Its 90 degrees in new york. Video you have to see to believe when we come back. Upbeat music no coverup spray here. Cheaper aerosols can cover up odors in a flowery fog. But febreze air effects eliminates odors. With a 100 natural propellent. It leaves behind a pleasant scent youll love. [deep inhale] freshen up. Dont cover up. Febreze. I thats the retirement plan. E, with my annuity, i know there is a guarantee. Its for my family, its for my self, its for my future. Annuities can provide protected income for life. Learn more at retire your risk dot org. Coming up, chicago fed president Charlie Evans already today has sat down with cnbc he was in europe well bring you the highlights coming up. Then a very special guest, gillian tett is here well talk about everything from the trade fight to tech under fire to Everything Else thats happening in the world when Worldwide Exchange comes right back ou this. When one student gets left behind, we all get left behind. This is a problem that affects each and every one of us. Together with ibm, we created a whole new kind of School Called ptech. Within six years, students can graduate with a high school diploma, a college degree, and a pathway to a competitive job. You know whats going up today . My poster. Today, there are more than a hundred thousand ptech students around the world. Its a game changer. High protein. Low sugar. Tastes great high protein. Low sugar. So good high protein. Low sugar. Mmmm, birthday cake pure protein. Find our coupons in sundays paper. Call it the great rate debate Charlie Evans telling cnbc today he is, quote, open minded about the right level rates. Well hear from him straight ahead. Tech still under fire. While antitrust investor regulators are now looking at googles new plans. Plus, is elon musk really ready to take people to space next year . His latest promises might surprise you its monday, september 30th, and youre watching Worldwide Exchange right here on cnbc good morning and welcome back here just exactly 5 30 a. M. Eastern time on the nose im Brian Sullivan thanks for being with us here on Worldwide Exchange. Impeachment talk is certainly growing in washington. And Top White House aides are now planning a wideranging response lets get more now with nbcs tracie potts who joins us life from capitol hill. Good morning, tracie. Reporter good morning. Heres whats happening most of congress has left on a twoweek break but there are three committees that are still here working overtime on this and were hearing there could be some new subpoenas coming out as early as today reporter over the next two weeks, five state Department Employees will speak to lawmakers investigating whether President Trump tried to pressure ukraine to dig up dirt on rival joe biden in a phone call with the countrys leader. We dont have to show a quid pro quo, although this conversation comes awfully close. Reporter on thursday, Congress Hears from former Ukraine Special envoy kurt volker who just resigned on whether he helped President Trumps lawyer go after biden or scrambled to do damage control then friday, theres a closed hearing with the intelligence committees Inspector General who told lawmakers about the whistleblower who exposed President Trumps conversation lawmakers say theyre working out details to get that whistleblower in to testify soon. If you read the sevenpage little nancy drew novel the whistleblower put together, rips with contempt for the president and righteous indignation. I hope we can protect this individuals name. I find it highly unlikely. Reporter the president tweets i deserve to meet my accuser, questioning if the person who informed the whistleblower was spying on the u. S. President big consequences he warns. President donald trump has been caught red handed with his hand in the taxpayer cookie jar. I have the president s back because i think this is a setup. Reporter we may know more this week. Meantime, what is the public thinking about this new cbs poll 55 , just over half the pollers say they do approve of this inquiry. Brian . Tracie, thank you very much in d. C. Now a check on this mornings other top head looirns outside of the world of money and business including Francis Rivera some snow its going to be 90 degrees here in new york today and its snowing in the rockies. Yeah. Just looks weird, doesnt it on pumpkins and the fall colors but we start with this brian on this monday morning cbs discontinuing zan tack the popular over the counterheartburn medication and cvss new generic version is being pulled off store shelves they issued a warning about heartburn medications containing small amounts of mdma which may cause cancer what we were just talking about, it may be fall but parts of the northwest are falling that winter blast. Look at this areas facing a threat of blizzard conditions this morning. Montanas governor has declared an emergency reporting that as much as 3 feet of snow had buried parts of the state. The National Weather service says it could end up being the strongest on record for early fall people who want to ski, though, the mountains get a head start. Could working out too much lead to bad decisions . A new study compared the brains of male triathletes and found that those who overtrained had a reduced capacity to resist temptation compared to those who trained normally so perfect excuse right there not to push those workouts because, hey, you might be reaching for those cup cakes it works that way for women, too, brian. What time do you wake up in the morning, francis dont ask i have several levels of snooze around 2 00 a. M. Yeah. So when you i dont get up quite as early as you, but that makes it hard to get too much exercise, doesnt it that 2 00 a. M. Wakeup . You have your excuse right there. I got my excuse all over me francis, thank you very much 2 00 a. M 2 01, that one minute that matters. Joining us on set for the rest of the half hour, very pleased to have the Financial Times gillian tett on. Real pleasure. We hope to hear from Charlie Evans, one of our fed guys in europe today, one of the chicago guys without going ecb president , mario draghi, congratulations. What are the key take aways for our viewers . Well, the key take aways are firstly draghi is increasingly of the view that fiscal policy has to be harmonized there needs to be a mechanism in the eurozone to allow governments to come together the reason hes saying that is partly because hes absolutely committed to keeping the euro together on track but hes also in that group of Central Bank Governors who increasingly recognizes that Monetary Policy is starting to reach its limits. Central banks really have been the main game in town for the last few years but theyre now saying actually as we go deeper and deeper into negative territory its time for governments and fiscal policy to step up and, of course, saying that is pretty controversial in the eurozone. It is and fiscal policy, for those uninitiated with the subtle speak of central bankers, basically means its up to you, government stop looking at central bankers. The government is in charge of fiscal policy. It means tax, tax, tax and tax. It means and spending as well. Doesnt mean tax. Not just tax but in this case it means essentially providing some form of public spending thats a crucial thing and theyve been saying for a long time inside the ecb actually theres a limit to what we can do. Theyre already facing really strong opposition inside germany towards any more loosening of policy even the current quantitative easing is very, very controversial there are german tabloids presenting draghi as vampire is dracula sucking all the blood out of the german economy. So theyre saying it up to the governments to provide the stimulus of course the problem is that a lot of german politicians are strongly opposed to any more stimulus measures. And it really does come down to germany right now. Sit tight we have your views all the rest of the half hour i want to get more on that evans thing its not 6 00 a. M. Here and we have a fed head on the record on cnbc chicago fed president Charlie Evans sitting down with cnbc early this morning in europe reporter well, thank you so much, yes. Were here in germany and Charles Evans is here to actually participate at a conference which is organized by the bundes bank, the central bank who is at the forefront of the criticism against the ecb. But let me bring you back to the topic which i addressed with Charles Evans, clearly we had to speak about the spikes and repo market and the reasons behind that as we got so many different potential reasons in the spike in the repo market i had to ask him what his explanation is for that and take a listen the new york fed put together a very Strong Program to offer repos daily, offer term repos over the quarter end and i think its effective i think that this is just a challenging time the Federal Reserves Balance Sheet is lower than it had been. We had been bringing it down we stabilized it, but theres still pressure on the level of reserves as nonreserve liabilities adjust and so the term repos i think had been extremely helpful i think its been a very well designed plan. So, the name of the game is, i guess, uncertainty if you look at the economy in the u. S. , its uncertainty as well about 2020, whether there will be a recession or whether there will not be a recession. Whether the u. S. Economy is actually doing a lot better than the likes here in europe one thing is clear that most likely it will need more stimulus the market is pricing in more rate cuts even for this year and president evan early on was saying that he doesnt expect another rate cut he might actually have changed his mind a little bit, at least if you look at the semantics of what he told me today. So take a listen of what he had to say about the outlook for rates. There are head winds that we are facing we have reduced the federal funds target by 50 bases points. And i think thats helped move us into an accommodative stance more than where we were for sure, but i think that could be a moving target of head winds are increasing and we might need to do more so essentially it is, as i was saying, uncertainty also prevailing over the part of the Interest Rates, but it seems the data is most important if inflation snot picking up, he could change his mind. With that, back to you, brian. Thank you very much. Quick comment, we talk about this repo market, right . Listen, even for people in the market this is this is like the plumbing, the pipes of the Financial System here. How big of a deal do you think this story is . Well, the thing about the plumbing is you only ever notice when the plumbing goes wrong, backs up and creates a mess. Thats true in central banking as it is in everyones house this is a big deal in the sense that unless the plumbing is working, the Financial System doesnt work its that simplsimple we learned that in 2008. Whats been going wrong recently, the plumbing has been hitting an air pocket in that the Federal Reserve knows its taken this incredible experiment with quantitative easing, knows its taking a second experiment or has been with quantitative tightening as it tries to pull in that amount of Monetary Policy it put in there the central bank has never been in this position before. It doesnt quite know how the central Banking System works or the Financial System works when you have this much money swirling around. This much regulatory change. So far the new york feds plunger so to speak has worked for now. Its a big story i want to switch gears, gillian. The Technology Industry remains under fire from regulators the wall street journal is reporting a new story congressional antitrust investors are looking at plans by google to use a new internet protocol called dns over https dont worry about the technicals they fear this could give google an advantage we dont need to get into the pipes again. The pipes and the plumbing of the internet which is what google is trying to do their whole goal is to try to prevent hackers from getting in and spoofing websites. But the tech under fire theme, gillian, seems to be growing in the last couple weeks. What connects the banking crisis and repo, you have geeks who have control of a lot of information that nobody else understands and yet everyone depends on them. So, just with the new geeks dns system essentially you had bankers looking at derivatives the reality is that politician have woken up to the fact that theres this huge information asymmetry they dont understand whats going on in the heart of the tech sector but theyre concerned. Youre getting story after story after story where politicians are saying, yikes and regulators, too, yikes we dont like whats happening we want to try to clamp down were not quite sure how thats tough for investors to cope with. It is your point is well taken if you watch one of these public hearings we broadcast it on cnbc. Im not knocking any politician. Okay but some of the questions they ask, if you even know the basics, you realize they dont have any clue. Do you think theyll be able to effectively better regulate this market or is it going to be the lobbyists that say here is what you need to do to us i think it will be very tough. We all have our cell phones, we all have our internet, we all depend on the internet every single day most of us have no idea how it actually works i think any investoring look at the tech sector today needs to recognize that banking was a decade ago a very long running attempt by the government to clamp down, to try to understand whats going on and thats going to create a bit of uncertainty and thats before you get o the trade war and the degree to which the tech ecosystem could be ripped apart in the coming years between u. S. And china as tensions rise. I will never forget in 2008 rushing down to d. C. And on that sunday night the following sunday i had some meetings on capitol hill and literally high level congressperson i will never name said whats a credit the fault swap in we had to go into here is what it is. Not like im the expert either one more this is about elon musk. The spacex founder unveiling the companys next generation rocket called the starship it is being built to carry people deep into space is there any other place musk outlined a rapid schedule for the program S Development saying we could potentially see people fly next year if spacex gets into orbit in about six months listen we can go to other places in the solar system, like saturn. And but the critical thing we need to focus on, i think, is the fastest path to a selfsustaining city on mars all right its bold. God bless elon musk guarantee no matter what else is happening in the world he has a way of grabbing the headlines. It is bold here is whats really interesting. Theres an incredible race right now for space. Not in the way we saw it before between the u. S. And ussr. These days its between the billionaires and the private sector because a lot of people realize that whoever manages to do clean up in space will make a lot of money its a hot, hot, hot investment area. Talk about mining some of these Rare Earth Minerals these elements we need for all the batteries, the stuff on the bottom of the periodic table some they believe exist out there and we can go get it. Interesting enough while all the focus is on the trade war at the Commerce Department the Commerce Department in washington has been doing very interesting stuff recently to try to open the door towards more private sector competition in space sector. So its a really area to watch. Thats very interesting stuff. Gillian, thank you very. Sit tight. Were not done with you. Coming up, a top wall street strategist raising his s p 500 target hell tell you the reasons why and name some stocks he said look pretty good right now those names actionable ideas for ethwhen we come back right afr is loud, huh . Mmhm. Your employees must love you. Thank you. Ah, you could say that. So how are things with you guys . Great. Thank you. Thank you, sir. Lunch next week . Terrific. Say hi to the team. Will do. Call my office, i will. Sounds good. Alrighty. Servicenow. Works for you. Thats where i feel normal. Having an annuity tells me my retirement is protected. Learn more at retire your risk dot org. Welcome back dow futures theyre up 90 points right now. On deck, a strategist who says more gains may be come, he is raising his s p 500 target and offering a bullish call on a couple of banks. He is piper jaffreys, chief market technician Craig Johnson hell join us live when wi ehaeom rhtesig back all right, welcome back to Worldwide Exchange. 5 49 here. We have been talking a lot recently about the strength of the consumer thats all of you. Here on Worldwide Exchange. And dominic chu with a look at how the entire sector is doing dom. Brian, as we talk about the strength of the consumer, a lot of its focus on the retailers, how much theyre spending in places like amazon and walmart or anywhere else one of the places thats been overlooked by some is just how strong the consumer is with regard to how they spend on their homes. One of the places its playing out in the stock market overall. Look at the s p 500 versus the Consumer Discretionary sector. Its outperforming just a hair over the overall s p if you strike out just the Home Builders which are by the way Consumer Discretionary stocks those Home Builders are surging toward multiyear highs right now. Take a look at this u. S. Home construction etf, that particular one is up now massively versus even the overall market the reason why is because Many Americans are looking at their homes as a way to perhaps invest or capitalize on their future. Look at these stocks d. R. Horton home builder up 50 just in 2019 lennar up 40 . Home depot up 34 as well. So its not just the Home Builders its the Home Improvement stocks, the Building Materials companies and if youre not buying a home, low Interest Rates have helped the American Consumer and its manifesting in these types of stocks, brian watch those Consumer Discretionary stocks not just retail but also the Home Builders as well. Dont they go together, dom you buy a home im going to get the number wrong. I think it was 50 or 60,000 goes into the economy every time somebody buys a home they pay the moverings they buy new sofas they buy a car housing is the halo of a lot of this. Not just that, it creates jobs the National Association of Home Builders says every kind of building that gets put up there creates three or four different jobs i want to say we talk about this kind of environment, you have one where the economy is doing okay. Interest rates are low its promoting this idea that homeownership is still something that people want to take a look at and all of a sudden you start to not just do that, buy a home, but then stock it as well. All of those things are translating into at least those types of companies perhaps thats a decent sign in the future all of these go in cycles and come to an end at what point does the consumer say, ill be more conservative in the real estate and the home spending and see what happens there. Dom chu, thank you. Joining us more to talk more about or the entire market is Craig Johnson, chief market technician at Piper Jaffray and company. He is not known as a wild bull at times hes been more right certainly than most people on the street its interesting that youre raising your s p 500 price target this morning. Thanks, brian thanks for having me on. You and i both get up early. When were coming to work, you sometimes hit that flashing red light. And what do you do you have to stop you have to look carefully both ways and proceed with caution. Thats really what i think you need to do with this market right now. Youre right, brian. We did bump up our yearend objective 3125 from 2725 little more optimistic clearly this market is extremely resilient at this point in time. From a technical perspective, were seeing the breadth of this market widen out and equity markets starting to respond. So, again, we just kind of upgraded our look. Its about 5 higher from where we are now the fed will continue to provide us ample liquidity and continue to think this market is going to push higher to year end. So in addition to that upgrade there, we also upgraded the Industry Manufacturing sector. Were starting to see a lot of improvement in relative strength and we did downgrade the services sector. Were seeing a little bit of weakness we made a few of those step changes this month, brian. You know that industrial manufacturing thing you mentioned, craig, i think thats really interesting because all this talk about how the economy is going to slow down, Business Investments simply has not followed suit with what dom just talked about with the consumer, but it sounds like the street is either ignoring that or thinks at least maybe the stocks are simply undervalued well, brian, i think its partly that. I think its also right now a lot of things i think are being missed whats happening the strength in the economy, the strength of the sectors, these stocks, what theyre doing theres so much noise coming out of washington at this point in time i think investors are getting caught up in that noise that theyre missing to simply stepping back and looking at some of these stocks stocks like boeing are reversing longer term down trends. The financial sector, you have stocks like jp morgan. You have nike which has been consolidating and now breaking out and dom was talking about the Home Builders lennar is ready to take the next leg higher at this point in time. Really. Dom talking about how lennar has been hot and your chart says it may get hotter it may get hotter, another leg up. Jp morgan chase as well i noticed that bank of america, b of a has a decent setup right now. Correct i i do think its a greatlooking setup. All these banks, these major large Money Center Banks are all starting to break out and move to the upside in here. Again, theres got to be a positive scenario for the market because typically when you think about financials, they have to at least participate in this market for this market to be healthy and ultimately to move higher im starting to see these major banks starting to work we cently added the position of Goldman Sachs into our model portfolio we run because were starting to see a nice down trend reversal with the financialsworking, th yield curve is very flat at this point in time, theyre making profits in other ways. Thats a very healthy sign for the overall economy that we shouldnt ignore. Yeah. Just weird, though these banks, you think they need higher rates but it sounds like again the markets simply either doesnt care or thinks at some point, i suppose, rates are actually going to go up. Not done. The refinance activity is through the roof thats a nice opportunity for the banks to pick up some of the fees and again, refinancing, coming back to the housing market, coming back to adding children into doms discussion earlier. You have a house, you get a car, maybe a few children come along the way. Clearly brian, as you know, theres a lot of spending that goes along with that. There was a story over the weekend, millennials are moving to the suburb. Im hold to remember that millennials are going to live in brooklyn in a shack their entire life and anybody with a kid or a crying baby knowing that that one bedroom apartment gets really small when the kid starts to cry Craig Johnson, always great to have you on. Always stop at the flashing red. Look both ways okay we like you. We want you to stick around. Craig, thank you. Lets get a final hang with gillian of the Financial Times here i did think that article was interesting the millennials moving to the suburbs. When you have a kid or two it changes your thinking. Brexit, Boris Johnson, new allegations around his personal life, massive vote in one month. How is this going to play out . Well, yet another source of instability in the Global Markets because the reality is that right now british politics is making american politics look rational and almost boring. Thank you all for that. All of our british viewers, thank you. You make us look stable. I live in new york these days, but the reality is, british politics has a horrific reality tv show. Its quite incredible that right now the uk is almost a month away from supposedly leaving the European Union and theres still complete chaos about whats going to happen. What happens if tomorrow is the vote or the deadline, october 31st, coming up quick. What exactly happened . Whats the mechanism the default option is the uk crushes out without a deal thats going to be chaos. Wakes up november 1st and no longer a member of the European Union trading zone great big cues that the ports and things and all the things that people are used to, its going to be very ugly. But between now and then, the question is firstly, can Boris Johnson cut some kind of deal with the European Union . Doesnt look likely. Will the British Parliament accept a deal . Looks even less likely and if it doesnt happen, will there actually be an agreement to essentially roll the whole thing off for another six, nine months what about general election. Its going to be a very nasty couple of weeks. And the problem is its been dragging on for so long, its like a really bad divorce. The rest of the world is just kind of fed up with hearing about it and the people who are involved are becoming almost increasingly enured. Which is dangerous. Its like the trade war. Everyday were like is there a resolution it was great to have you on Worldwide Exchange. Great to be here. That is it for us here on Worldwide Exchange. Squawk box begins right thousand good morning glad to be here. Made it. Green arrows futures pointing to a positive start to the week on wall street. The big drivers are straight ahead. On the global front, major protests in hong kong over the weekend ahead of Chinas National Day tomorrow. You know why, today is kept 30th tomorrow really is october 1st plus, elon musk unveiling a new rocket design to take you to space. Its monday, september 30th, 2019 squawk box begins right now. Announcer live from new york, where business never sleeps, this is squawk box. Good monday morning and welcome to squawk box here on cnbc live from the Nasdaq Market site in times square im kayla taush. Becky and andrew are off today u. S. Equity futures are in the green at this hour the dow would open up by 83. The s p would open up by 11. The nasdaq would open up by 42 after u. S. Officials are now issuing clarifications on whether or not the white house is considering investments being limited into china treasury official telling several news outlets they are not Going Forward with that policy at this time. Chinese state media called it a pote