Good wednesday morning welcome to squawk alley. Im carl quinnipiac. Jon fortt is at microsofts annual surface event in new york we begin with the markets this morning its been a rough ride to start quk q q4 behave bob pisani and mike santoli to break it down bob, ill start with you the important thing, this is the debate all year, what side of the recession debate are you on if you believe recession will start next yeear anyear, market dro markets will drop. You want to watch the big consumer names this year if theres a slowdown but no recession, these names should do well look whats been up, costco, home depot, nike, mcdonalds theyre across several different categories watch if they start rolling over so far its been modest. Starbucks is rolling over a bit. Jpmorgan had a negative comment on monday about them, but by in large they held up well if they start falling apart particularly after the jobs report comes out, i would get concerned. If youre in a slowdown camp, thats where i fee
Well and apple. That event is just wrapping up now. Announcements shaking out in the stocks of different competitors. Were going to fill you in on all of that action but joining us for the hour is steve grasso from stuart frankel. Steve, great to see you. Good to see you its amazing. Not necessarily a major move for the averages today or right now. Everything is slightly lower and actually, if you look at the week, the dow is actually flat so far to start off the week and yet theres been this great rotation talk to us about that. The rotation is coming out of growth into value. How long does that last is how long the market will be under pressure and for now, it probably will last a little bit longer, but get a trade deal, throw everything i just said out the window and you see everything rally back people are making the analogy back to 09 and 2016, with this rotation that lasted for a couple of weeks. I dont think it will be that long do you really think were going to get a trade deal