And fight night. Round two in the motor city. Ten more democratic president ial hopefuls taking the stage and debating the issues that matter to the markets and your money kind of. Its thursday, august 1st. Worldwide exchange begins right now. Afternoon, good evening and welcome from wherever in the world you may be watching. By the way, welcome to august. Im Brian Sullivan thanks for joining us. Behind us here is the intraday action in the dow yesterday. The dow from peak to trough fell more than 450 points the upside is that the index closed off ets worst levels of the day. The dow finishing down still 333. Its all because of this man right here fed president jay powell delivering the banks first Interest Rate cut in more than a decade the problem for stocks is that powell also failed to deliver a guarantee of more rate cuts down the road something both investors and one guy in the oval office are really hoping for. It all came down to two small words, mid cycle adjustment. The committee is really thinking of this as a way of adjusting policy to a somewhat more accommodative stance to further the three objectives to ensure against downside risks, to provide support to the economy if those factors are where factors are pushing pushing down on economic growth, and then to support inflation. So we do think it will serve those goals. Again, were thinking of it in the nature of a midcycle adjustment to policy President Trump quick to criticize powell saying he let the country down and hes not keeping pace with the aggressive rate cutting cycle seen in other countries around the world heres houw things look righ now. It looks like we continuwont ce to see that follow through in selling. The dow is up. The lone bright spot yesterday was the u. S. Dollar. Bonds also got bought at the feds comment, which is was less dovish than expected benchmark tenyear treasury yields at 2. 04 . They may be going close to going back below 2 on the tenyear yield. The mover yesterday was the currency marker. It wasnt just the dollar, it was bitcoin. Bitcoin spiking on that move chairman powells comments felt here and in markets around the world. Lets talk about how the markets are going. Willem marx joins us in london with a look at how the european markets are reacting to our moves and our commentary no clear direction, in this morning on this side of the atlantic in reaction to what chairman powell said yesterday and what the fed decided to do ill walk you through the individual indices here in europe most of these moves are driven by some earnings numbers out this morning lets start with the uk. The ftse 100, Companies Like the London Stock Exchange. Barclays Bank Reporting some quite good numbers 82 in profits you have Standard Chartered and youve got the ftse 100 down a quarter percent. Shell with some not great numbers out thanks to the weaker oil and gas prices thats really weighing on these uk equities. In germany, siemens, we had those terrible manufacturing numbers out of germany another big negative impact on the german market. In france, back to the banking stocks, socgen with positive numbers. The cac there in paris more than a quarter percent higher in italy, the ftse mib, the strongest performer here again, no clear direction, brian, in response to what the fed decided to do last night all right well see if that market turns around investors clearly disappointed the Federal Reserve was not as dovish as it hoped. Now you know the setup some investors may not like it, but it is what it is as they say, you have to play the hand youre dealt. Lets figure out what might work in this fedcontrolled world and bring in sylvia jablonski. So, the fed is done now, may be done with rate cuts for the rest of the year. Like it or hate it, it is what it is. What are your clients starting to do or doing with the current fed environment . Not a whole lot different than what they were doing before the fed announcements. So the fed announcement was interesting. If you caught the first five minutes, the market barely reacted at all it was sort of what was expected Flash Forward a half hour later when we dug into the commentary and it felt more like a hawkish cut, the markets pulled back we had the worst hour or so in the past two months in equity markets. If we take a step back from this and think about what it means, why did the fed cut 25 bips . We could have argued whether or not they should have cut at all. The consumer remains strong. Spending is up 4 . Job numbers are good the big issues in the economy are manufacturing slowdown and trade tensions companies having to worry about going to china, where to manufacture spending to get out and to continue global growth. And not so much that rates are too high what i would say is what were seeing is sort of flowing into the same sectors weve seen flows into tech weve seen flows into growth over value, cyclicals over defensive. Flows into semiconductors. We have seen flow into gold. Yesterday the last hour or so would negate what im saying, but if we come back to the market this morning and look at that 2. 04 number, rates are pretty low you know, the security trade really is gold you have your growth, your cyclicals, no recession. You generate some alpha there and you hedge with gold and other alternatives if Interest Rates are low it might entice people to buy things like boats, cars, maybe even housing you have one of these three times bull etf, its doubled this year. Are you still seeing attention in the Home Builders we are. One of our marketing guys came out with a great line, Home Builders is nailing it now love it. Leonard, d. R. Horton have had an epic year, up 20 , 30 we thought the Housing Market would slow down. They went into the new entry market instead of the highpriced Hamptons Mega mansion market and they have benefited from that. You have masco up 20 , 30 off of higher sales with windows and cabinets while the headwind there could an slowing economy, keeping rates low may keep that sector propped up its one of the top ten performing etfs year to date, along with tech, smuemiconducto and gold its a surprise, but the low rates are holding that sector up you know who does not care about the Federal Reserve or the rates . Technology investors for the most part apple has no relationship to what the Federal Reserve does the f. A. N. G. Stocks no relationship are you still seeing interest in Technology Names sure. Apple earnings crushed it wearable s were up, a unique client base. We were worried about a china slowdown, and they had about 9 billion in sales there oracle was up, visa, mastercard, alphabet, talking about buyba buybacks the sector just keeps reworking. Margins are good growth is strong invests are continuing to go to stocks that have continued to perform well no sign of lack of appetite on technology. People still buying it they still want it people are still buying it. The average daily Trading Volume for us over the last 80 days is up the one beta index up. You have growth over value with a 7 spread. So investors are still flocking to those names not saying we havent pulled back and gotten defensive, but if youre looking for alpha, tech is the place to find it i have to tell you, your coworker hammered home that point. He sure did thank you very much thank you when we come back, much more on the fed, jay powell, the Global Market reaction a big interview with william poole. Thats an interview you cannot afford to miss. And another trade war casualty qualcomm suffering its fate at the hands of huawei. Well explain why. Its not just them exclusive comments from another chipmaker on how that company has taken the trade warhead on. And yet another big fire at a houston area refinery leaving Dozens Injured the latest in what has been a string of savage industrial accidents coming up next moving is hard. No kidding. But moving your internet and tv . Thats easy. Easy . easy . Easy. Because now xfinity lets you transfer your Service Online in just about a minute with a few simple steps. Really . Really. That was easy. Yup. Plus, with twohour appointment windows, its all on your schedule. Awesome. Now all you have to do is move. That thing. [ sigh ] introducing an easier way to move with xfinity. Its just another way were working to make your life simple, easy, awesome. Go to xfinity. Com moving to get started. A rainy and quiet day in hong kong. The Chinese Foreign minister blaming the United States overnight for the increasingly large protests saying it is somehow the work of the United States somehow. All right. Lets get back to the markets. Shares of qualcomm under heavy pressure the Company Issued a weaker than expected outlook and blaming the trade war for recent weakness. That stock down 5 Arjun Kharpal joins us live from a Technology Conference in yokohama, japan with more. Brian, its a specific trade war issue and it is related to huawei i was listening to the Earnings Call earlier from qualcomm and the amount of times they mentioned huawei in that call was staggering the ceo of qualcomm said that huaweis share gain in china was a big reason why qualcomm reported those worst than expected numbers let me explain why huawei had a Record Number of shipments for smartphones in the Second Quarter in china. And it had a huge number of its shipments specifically in china. Thats bad news for Qualcomm Huawei uses modems made from its own silicon factory rather than qualcomms on the other hand you had qualcomm customers see declines in the Chinese Markets so you had the rise of huawei using its own modems, and the decline of qualcomms customers, and that equaled bad news for qualcomm the other thing that disappointed wall street was the guidance from qualcomm if you read the earnings statement, what it said was that the guidance excludes royalties from huawei. The reason for that is because huawei and qualcomm are in a royalties dispute. Thats another huge cloud hanging over qualcomm ander semy you also caught up with the intel ceo at that conference what did he have to say . Thats right. Bob swan was talking to me about how hes seeing a slowdown in the china market, thats impacting intels Broader Market and i asked about huawei, intel was a key supplier to huawei now u. S. Firms require licenses to sell to huawei. I asked about that process and where they were in the process the process now is we file licenses to try to get approval. We submitted quite a few licenses the administration announced last week they will try to process the licenses from the industry in an expedient fashion. Were encouraged by that so, intel confirming that it has applied for licenses with the u. S. Government, but been swan told me it hasnt received a timeline on when they might receive those licenses clearly huawei and china are a big black cloud and you saw that in the qualcomm shares Arjun Kharpal, thank you very much still on deck, why beyond meat is bracing for another day of losses. Some early investors are cashing out of the alt meat business. And welcome to august. On average, dating back to 1980, august is the worst year for the month for materials, will that happen again or will this year be different find out when Worldwide Exchange returns. Welcome back it is done the London Stock Exchange striking a deal to buy refinitiv for more than 14 billion. The deal will help the lse expand into overthecounter trading through refinitivs matching platform. This is also the biggest competitor yet, once combined, to the bloomberg data empire the lse stock market up 6 also up, Royal Dutch ShellSecond Quarter profits slumped missing forecasts primarily due to lower oil and gas prices. Revenue dropped about 7 production did increase about 4 in the quarter rds down 4. 5 right now. And more on the stock captivating everybody, beyond meat is pricing its secondary offering at 160 per share today, an 18 discount to yesterdays close. That is still more than six times the companys ipo price. Beyond meat plans to sell million more shares at that price. Still to come on Worldwide Exchange, investigators are searching for a cause in the latest of a string of refinery fires in the houston area. We had another one yesterday the second at that facility this year plus woodstock 50, if you even heard about it, its been officially canceled. Well tell you why when Worldwide Exchange rolls on. Applebees all you can eat is back. Now thats eatin good in the neighborhood. All right. Welcome back another fire hitting the chemical and refining industry 30 people suffered minor injuries when part of the massive exxonmobil plant in baytown, texas caught fire on wednesday. Some drentz residents said the explosion shook their homes. The cause is still unknown this is the latest in a scary string of accidents at oil, gas and chemical facilities. This is the second accident at that plant just this year. It also coming on the heels of fires and explosions in philadelphia, houston and crosby, texas. Weve been on the scene of all of those well continue to stay on this story. Lets check the other headlines out there on this thursday morning phillip mena has those. An urgent search and rescue is under way for a navy pilot who crashed during a Training Mission in Death Valley National park that pilot was flying an fa18 super hornet over an area dubbed Star Wars Canyon seven tourists on the ground suffered minor injuries. The cause of the crash is under investigation. More than eight years after the death of osama bin laden, u. S. Officials tell nbc news that his son is dead he was largely expected to be the face of al qaedas next generation his last known Public Statement was released by the terror group last year. Officials did not say where, when, or how he died we know the death happened during the Trump Administration but its unclear what role the u. S. Government played in that if any woodstock 50 has been wood stopped. The anniversary festival was officially canceled yesterday after headliners including miley cyrus and jayz pulled out money and venue issues had critics predicting this announcement for months. The organizer, michael lang, told Rolling Stone he was disappointed to pull the plug. He blames early creative disputes with financial backers for derailing that event its all about capitalism not supposed to be, but it is. On deck, President Trump not mincing words when it comes to his feelings about the Federal Reserve. Doubling down on putting powell in his place well give you his comments ahead. And a big interview, an exclusive with bill poole, what does he think of the feds move . Youll find ounet xt at leaf blowers. Should bed [beep] you should be mad your neighbor always wants to hang out. And you should be mad your smart fridge is unnecessarily complicated. But youre not mad, because you have e trade which isnt complicated. Their tools make trading quicker and simpler. So you can take on the markets with confidence. Dont get mad. Get e trade and start trading today. Watch not only what the fed does but what the fed says its not the beginning of a long series of rate cuts i didnt say its just one the Global Markets rattled after hearing those words from jay powell. And President Trump is disappointed why he says powell let us down. And debate night the gloves coming off in detroit. Democratic president ial hopefuls squaring off on everything from healthcare to trade. Its thursday, august 1st. Youre watching Worldwide Exchange on cnbc. Welcome back and good morning. 5 30 on the east coast thanks for being with us on cnbc welcome to august. Im Brian Sullivan after yesterdays sizable drop, more than 300 points for the dow, heres how futures look now. Theyre up 70 points were not seeing a followthrough on that sell. Perhaps everybody analyzing the fed, looking at the market and realizing the economy is good. Long way to go today dow futures up 70 points bonds got bought big time. We were like a hair from going below 2 on the tenyear note yesterday. Were above that now 2. 05 . We were down to 2. 01 yesterday. What about in the asian markets . The japanese market,it rose. Call it 0. 01 . Concern there that the United States might be turning into a japanlike economy, slow growth with no inflation. Bad combination. The european markets, not a lot of movement. They have their own fed. The European Central bank. They have been cutting theyve been doing quantitative easing, remember that . So theyre stimulating, which, by the way, frustrated our president that were not doing more of that the big mover yesterday was currencies the more hawkish fed sending the u. S. Dollar higher the dollar index rising about a half percent bitcoin also spiking on that move two little words having a big impact on the markets yesterday and perhaps jay powell realizing the real power of his words. Here with a mid show adjust