We lower on the douby just 6 points some individual stock moves on the final trading day of august to hit check out ulta beauty on track for the worst day ever down around 30 after missing on earnings, revenue, estimates for the fullyear guidance also coming in light blooming brands seeing a spike around 2 00 p. M. After Jana Partners to take a 9 stake in the company saying in a filing it believes shares are undervalued and intends to have discussions with the company about a possible sale. Nearly 8 pop there. Shares of lions gate falling on a report of comcast dropping starz. Comcast is parent of cnbc. Joining us for the entire hour, final hour of the final month of trading for final day of the month of august is mark tepper to these individual stock moves like an ulta, wilfred mentioned target up 25 , ulta down almost 30 . Why are these such severe reactions to earnings, these reratings of the stocks individual story or the Market Investors are concerned overall about just carrying risk forward given everything thats happened over the course of the last few weeks with yield curve inverting. Thats driving a lot of volatility you have a lot of investors concerned about carrying risk into a threeday long weekend. Which is 50 longer than the normal weekend which means the chances of a tweet or some sort of a trade headline that negatively moves the market as you show up to the desk Tuesday Morning is more likely i think the investors are just a little more worried right now. Theres more anxiety in the market overall. The weekend is 50 longer we have that ahead of us. Sounds really long. Im up tuesday. What does that make it 100 . 58 minutes of trade to get through and lower on the dow lets get to the big stories today. Bob pisani with a look at the latest and phil lebeau but, bob, lets start with why. Getting out of august the trade that worked this week and the last couple of months is short cyclicals. Go long on Consumer Staples. Nice outperformance for the defensive names and if you didnt sell your Treasury Bonds, my heavens, longterm Treasury Bonds, 10 to 20 years, almost up 7 20plus up 10 thats extraordinary for Treasury Bonds i dont remember when ive seen that thats certainly working the problem is were getting movements. The cyclical rally was back this week united tech, caterpillar, dow, inc. Rallying. People dont believe it will last longer without clarity on whats happening on global trade and commerce back to you. Thank you turning now to the topic of trade, as the latest round of new tariffs set to take effect on sunday, kayla thas the latest in washington. 112 billion in goods leaving china september 1st, even after that list was truncated, still includes back to School Supplies and Sporting Goods it is the first of a slate of new tariff deadlines this fall in one month the existing 25 tariff on 250 billion rises to 30 . And then midnovember the white house will divide whether to slap auto tariffs on well see what state the economy is in. Both in the u. S. And in china at this time. Those deadlines are interspersed with three Federal Reserve meetings President Trump voicing a hope for monetary relief saying we dont have a tariff problem. We have a fed problem. The president departs for camp david 5 30 p. M. Eastern time and likely talking to reporters then. The only important Central Bank Meeting coming up, as well. Thank you. Lets focus on tesla getting some good news from china and gm with heat from the president phil has more for us in chicago. Reporter tesla shares with a bit of a pop this morning but given back some of that after word out of china that tesla models will be eligible for a purchase tax thats applied to electric vehicles in china waved. This is not just for tesla, all electric vehicles. Part of china trying to spur more sales over the next couple of months since they have been slowing down with regard to the president and his thoughts on General Motors, sent out a tweet this morning blasting the automaker saying General Motors is now one of the smallest auto manufacturers there, moved major plants to china before i came into office. Now, they should start moving back to america again. As if to say why arent they thats not going to hatch. They wont close down in plants in china and bring them back to the u. S. General motors employs 46,000 uaw workers here in the u. S. And the contract talks will heat up over the next couple of weeks. Well follow that wanted to ask you about news of another delay for the 737 max. What can you tell us there reporter it comes from United Airlines which had maintained a plan to bring the max back into service in early november now the airline is out saying we plan on doing that by december 19th in terms of the three u. S. Airlines that have the max in their fleet, that had been grounded since march, southwest is bringing it back in january now you see united bringing it back december 19th, thats the plan american remains early november. Dont be surprised if that changes because we dont know when theres a certification of this plane and speaking of which the faa out today saying as you take a look at shares of boeing that the joint authorities technical review, basically all of the Safety Agencies nine of them from around the world need a couple more weeks to do the work and then file their report on the certification of the plane. Filing the report is two weeks away does that mean its approval no, no, no. Lets be careful it means that the board will say, this is what we found looking into how the max was certified, the processes that were involved, whether or not there need to be changes, et cetera its very important. Its going to have some impact in terms of the faa determines with the recertification the actual recertification of the plane, boeing needs to submit the application they have a number of steps to go through we dont see that happening in the next couple of weeks likely to happen soon, maybe by the end of september and no definitive time line there phil, thank you very much boeing where do you stand on this i own boeing and delta. A great thing of delta is it has no max exposure whatsoever right . Thats a hedge . Thats the hedge and own boeing the world estimating they need 44,000 more jets over the course of the next 20 years thats a 7 trillion purchase. A lot of money and most of thats going to come from single aisle jets, boeings specialty. It is a cash flow timing event they will collect the revenues once that thing is no longer grounded. Boeing is up 6. 3 really the sixmonth chart that looks ugly. Yeah. Its hit a point where in my opinion all the bad news is already priced in. We should see more upside from here. Lets broaden out an talk about the broader markets. Bank of america with the latest results of the indicator dropping to the most bearish level since january, a buy signal for stocks. Joaning us now christina hooper. You getting more bullish yourself or not . We have been bullish really since the fed came out as being more dovish starting in june and certainly when it cut rates in july thats a continuation of what we see among other Central Banks creating a more accommodative environment and should be a positive for stocks. Yet stocks are down since the last fed meeting where they did cut rates. Right but they would have been down more i would argue had we not had that fed support because the news has been really awful, especially around trade and i think that that really has made the difference for stocks, that kind of fed dovishness. Does trade outweigh the fed given that we have seen an inverted yield curve for this week and stocks to rally is the market less concerned about that aspect . I think theres a tug of war really between the fed and trade. But at the end of the day i think the fed is going to provide a pretty significant level of support for stocks and other risk assets. That should help them perform relatively well in the coming months. What kinds of stocks do best on this fed call the growthier stocks tend to do best and in a slowing growth economy wed want to if focus on secular name stocks, as well theres such a scarcity in yield right now. Its a volatile month as we have touched on. What have been the key levels to keep an eye on going into september to see a breakout in either direction so theres a lot of resistance in the 2940 to 2950 range. We have been battling that all year in fact earlier today we touched 2940 and pulled back from it 2940s the level we think we really have to blow through, close above that level, in order to get more confident. But septembers typically a sleepier month the market comes alive in october and the next big thing on the schedule is fed meeting in our opinion and sometime in september we are going to meet with china those are the two big things we are in the november 18th. September 18th. We are in the camp that they need to cut 50 basis points just to flatten out the curve probably not going to do that. 93 probability of a 25 basis point cut. Leaves the sort of door open for potentially some disappointment if the fed isnt as agrgressive as the market or mark and others hope for. Theres room for disappointment given Market Expectations and what we expect to see from the fed but the important thing to focus on is that the fed is getting more dovish and that accommodation should provide support in the next several months to stocks. Does dovishness from other Central Banks help or hinder help dovishness everywhere helps stocks everywhere. I think it creates an environment where not only are u. S. Stocks supported but to a certain extent equities around the world are supported by central bank dovishness. What do you like . Tech stocks . Absolutely. And, of course, dividend paying stocks theres a real place for those in a portfolio given just how anemic yield has been. Thats the big debate now looking at whats positive for the month of august it is real estate, staples and do you stick with those defensive trades or go cyclical if your outlook is good i think as a trade the defensive trade will continue to work but the problem is for me longer Term Investment standpoint theyre so overvalued. Paying 25 times earnings to own a consumer staple thats growing earnings at 3 , 4 a year. So what do we like we like high growth names, as well within tech, we prefer software over semis and hardware. A favorite name is salesforce. Youre talking about a company that really they offer two businesses, something that makes companies more efficient, more profitable they generate all recurring revenues and the bear case against salesforce is if the economy slows down these businesses are going to cut enterprise spending. We havent seen that. Probably a last expense to cut. If it makes it more efficient, more profitable, why cut that . Thank you for joining us. Thank you. After the break, mike santoli with a special dashboard for the final trading day in the month. Later, the ceo of Amc Entertainment and why negotiations on the big screen fell through and as we head to break, a check on the data tracker today. Personal incomes in july rising. 1 speci personalpeinditop . Sndg d. 6 i cant believe it. That sophie opened up a wormhole through time . speaking japanese where am i . woman speaking french are you crazy nuts . Cyclist pip pip woman speaking french im here, look at me. Its completely your fault. man speaking french ok . Its me. Its my fault . No, i cant believe how easy it was to save hundreds of dollars on my Car Insurance with geico. pterodactyl screech believe it. Geico could save you 15 or more on Car Insurance. Welcome back to closing bell. We have a mini selloff we have seen gains and losses in the day. Still up nicely for the week with about a quarter percent decline for the s p. Go to mike santoli for the dashboards sara, heres what we have ahead. Monthly rentals. The stock market has actually had an odd month by month pattern to point out time to harvest . Some of the most successful trades of august maybe in danger of being unwound suddenly, last summer. What does it mean . And then well look at days growing shorter. Basically some consumer issues that maybe the consumer is getting wobbly in the outlook not the poirps this is a fivemonth chart of the s p 500 separated by calendar month and we have had a flip of the switch almost from month to month heres april in may you never had a day that closed above aprils high. That was very close but it was not above aprils high in june you never had a close below mays close. So essentially you have had all of these months operating outside the range of the prior month and head for august. We have not closed above julys close. It doesnt necessarily tell you which way were going in september but if this pattern holds it would mean that wed trade outside of either all the way above it or never go one way or the other trading through this months close now, now that we notice this pattern, not saying it continues but Something Interesting going on perhaps about Asset Allocation by month and systemic trading to pivot month end numbers. The other thing thats clear off that is august was much more volatile and less clear direction to it. Extremely choppy and essentially it was all about mean reversion we traded very, very vie lightningly within a pretty narrow range didnt necessarily resolve anything in terms of what the real trend is. Does this speak to you . No. Doesnt tell us much of anything at all again, the biggest thing to watch in september is the result of that fed meeting. I dont think much is going to happen next week people are still on vacation you start to come to midseptember, see action in the market again and all eyes on the fed. The fed needs to act, they need to act quickly to fix the yield curve. Worldwide our Interest Rates are just too high so theres really just not a lot of competition. Were the best game in town. Thats why the 10year yield is down to 1. 5 . 40 minutes until the close. Look at the market red on some of the sectors here weighing down the major averages on the s p, technology and Communication Services a bit weaker materials and industrials also cyclical are higher. Still ahead, a trickle down recession on the horizon well discuss what a dropoff in luxury spending could signal. Up next, ulta beauty on track for the worst day ever after earnings miss the mark 01 welcome back to the closing bell. Time for the word on the street. Earnings reaction edition. Ulta slammed today down 30 on pace for the worst day ever. The stock downgraded to hold by piper jaffray, wells fargo, Morgan Stanley and citigroup wall street reaction not positive cowen and jpmorgan maintaining overweight ratings deutsch bank upgrading abercrombie after citing tariff impact they expect valuation and positive trends for a floor for the stock. In the near term that was big earnings loser the other day. Ulta today mark, any of these look enticing we are buying ulta today. We probably just placed the order recently to buy it into our portfolio at a reasonable price. Nothing long term changed. People are not going to stop wearing makeup. Is this a firsttime buyer . Firsttime buyer. So were always looking for companies where we like the longterm growth story and then they pull back on an expectation miss and down 30 , i would definitely call that an expectations miss which makes the entry point somewhat attractive so we are building a position right now we think the longterm growth story is good. Management executes, a great job. It is a good buy Abercrombie Fitch, not a big fan there. Theres retailing disappointments in the last week or ten days. Do you think that concerns you for the u. S. Consumer more broadly or a couple of individuals . I think the u. S. Consumer overall has kind of changed. So the u. S. Consumer really is much more cost conscious and they also value time so thats why amazon has really been such a big mover over the course of the last several years because of convenience saves people time but when we look at the cost Conscious Consumer one of the things we look at is offprice retailers like tjmaxx and all the apparel that doesnt get sold at abercrombie and kohls and macys going to tjmaxx and consumers love that treasury hunt experience. They have to go in its working it continues to work look at the strength in lulu i wish theres an expectations miss to give us an opportunity to get earnings are next week. Crossing our fingers to get into it finally. Its always out of the price range. What about tariffs . Retailwarnings on tariffs. It doesnt quite feel universal. A company like Abercrombie Fitch cutting guidance on tariffs, is that legit theyre set to go into effect starting sunday and september. And yet, Dollar General boosted its forecast walmart and target seemed to be managing it okay how do you navigate that we own Dollar General and only 6 of their products are foreign sourced. That lot is coming from china and also committed to either substituting the 6 products or eliminating the skews completely and why Dollar Generals holding up well and 75 of the revenues from excuconsumables which is f or cleaning products it is stuff that you always need and prokts within retail to be in and then other pockets to avoid specifically the abercrombie kind of companies where theyre inside the mall and mall traffic is on the decline. Thats a secular head wind you dont want to fight. Still coming here, last chance play and a beer trade 50 extended weekend. Is there a bubble storming in the sparkling water market . Cocacola reportedly taking on bubly and lacroix. Heres a look at commodities to trade for the month. Wti crude and brent losing 6 t . Silver shining and it was a big month for gold closing bell will be right back do you have concerns about mild memory loss related to aging . Prevagen is the number one pharmacistrecommended memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. He