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 sooner rather than later . I think that President Trump looks at this is his best indicator of how hes doing, how the market is doing. And if the market sells off enough, i think that youre going to start to see the wheels start to spin again, and that will rally the overall market. All right well, lets focus in on the big stories were watching today Julia Boorstin is in cupertino with the latest from the alfred event. And Kayla Tausche is monitoring two stories out of washington. Trade and a highlevel departure that sends oil lower but julia, lets go to you first on apple morgan, apple announcing three new iphones, including the iphone 11 that will start at 699 also announcing two versions of its new iphone 11 pro. Both of these have three rearfacing cameras, a longer battery life and are water and crack resistant. The 5. 8inch version will cost 599 and the 6. 5inch version will cost 1099. And they will all ship on september 20th apple also announcing some new details for the launch of its appletv plus it will cost 4. 99 a month, thats half of what some analysts projected and the first shows will launch november 1st with one year free if you purchase an iphone, ipad, or appletv. Take a listen to tim cook. Our mission for appletv plus is to bring you the best original stories for the most Creative Minds in television and film stories that help you find inspiration, that are grounded in emotion truly, stories to believe in stories with purpose these iphone announcements, this appletv news hitting a number of streaming stocks we saw netflix, roku and disney all turn lower on this news. Were learning that roku shares are off more than 11 . It seems like that price point is really impacting those other shares now, apple also introducing a new series 5 apple watch also, new ipads, a seventh generation ipad, a big focus on health, big focus on the better quality screen and also announcing a new tradein program for the iphones. A lot of news out of cupertino here today guys, back over to you julia, a lot of news. Thanks very much for being on top of it all for us lets bring in tom forte from da davidson hes got a buy rating and a 270 price target on apple. Whats the headline for you today . The two Key Takeaways from apples announcements today are the 4. 99 price point for tv plus we were more interested in the price for appletv plus than the specs for the new iphones. What were you expecting 9. 99 its a shot across the bow for netflix. And the tag line for apple iphone 11, it should be, buy the iphone 11 before the government raises the price on the iphone 12 the fact that they did actually cut the price, that iphone 11 is starting 50 cheaper than the previous model, are you surprised by that . Surprised, but pleasantly surprised. I think last year, the expectation was the higher price points would suck up the lower unit volumes i think what youve seen over the course of the year, as the smartphone markets matured, apple has had to be a little bit more aggressive on price did they do any of that price based on the tariff issues do you think that that made them this year, they basically got a free pass from the u. S. Government to the extent that they delayed the enactment of the tariffs. I think that was a huge benefit for apple. All right tom forte, were going to be talking to you a little bit later in the show, as well, to break down all of the details we have been getting this afternoon in more depth. Meantime, steve, youre invested in apple, right . I am. I have been invested in apple for quite some time. But if you look at that Services Number that contributes to revenue, its just under 40 billion. Obviously, theyre going in the right direction. Theyre throwing everything they can at the model to replace the hardwaredependent model and theyre making a lot of headway. And i think its a shot across the bow not only to netflix, but disney with their streaming prices so im still bullish on apple. All right. Well, bank stocks are in focus today as jamie dimon speaks at the Barclays Global Financial Services conference, and wilf has the details on what he said. Youve been following all of these discussions all day very indeed. And he was preparing, he said, for the possibility of zero rates in the u. S but did not expect them to materialize. He added that he thought that rates were already plenty low. He downgraded fullyear net interest income, but only marginally, 57 billion rather than 57. 5 billion and that continued key theme from yesterday, for downgrades relating to lower yields were not too bad. He was constructive on the u. S. Consumer and relaxed about the cycle overall, saying well not have the same level of losses this time. His biggest concerns were trade, china, and Hong Kong Hong kong is a flash point. And trade might be where both sides want to do something, theyve kind of got themselves wrapped up in complex negotiations they are very complex. And next year, i dont know, but taking the trade war off the table is a good thing. To have mature negotiators to try to get it done the stock is up 0. 8 , 0. 9 today, adding to strong gains yesterday. Strong gains, as well, for the last couple of weeks weve seen a bit of a yield pickup anyway in the last couple of weeks, but i think the theme of the last two days has been these Earnings Guidance release from all of the banks, small and large. And they havent been too bad, relative to what they could have been, given how much yields had dropped since the last update. I think he has to be happy with whats gone on in the last couple of days, when he starts to see rates bounce. And we were just talking about this a couple of weeks ago, we were eyeballing that one spot, 31 level on the tenyear and now weve rallied significantly on that basis from there so i think this is going to help the laggards, this is going to help the financials. This is going to help things that were challenged with the inversion of the yield curve, so hes got to be happy, at least, for the last couple of days, even though the overall market is lower i think definitely. And as weve seen that play out this week, i would also point out, theyve had a decent run over the last two and a half weeks. The final week of august, as well first week of september, youve had quite a big jump theyre not now that far from the highs that they reached when the market hit highs, but certainly cheap relatively to s p 500. Financials one of the sectors in the green again today meantime, a number of developments coming out of washington today, as well, including new headlines surrounding china trade and a big shake up in the Trump AdministrationKayla Tausche has all of those details for us hey, kayla hey, morgan National Security adviser john bolton is out after a monthslong policy disagreement with President Trump and his secretary of state, mike pompeo. And just days after secret talks with the taliban were called off. The departure of the administrations Foreign Policy hawk shaved a dollar off wti crude oil, still down about half of 1 . Secretary pompeo briefed reporters with treasury secretary Steven Mnuchin this afternoon. They said President Trump could meet irans leader at the u. N. General leader in new york, but the maximum Pressure Campaign would continue secretary pompeo and myself and the president are completely aligned on our maximum Pressure Campaign i think you know weve done more sanctions on iran than anybody and its absolutely working. Now, the president has made clear, hes happy to take a meeting with no from conditions, but we are maintaining the maximum Pressure Campaign. Meanwhile, the South China Morning Post reports china plans to sweeten its offer to washington to get a trade deal by buying more u. S. Agricultural products a u. S. Based source tells me chinese officials made this offer in a call dwebetween principles last wednesday evening. The source called the proposal modest with china wanting a delay or perhaps a cancellation of the escalation of tariffs expected for october 1st no word on whether the white house agreed to that morgan kayla, thank you. Weve got 50 minutes left of trading and right now stocks are fractionally lower with the dow down about 40 points right now, well off the lows of the trading session. But within the market, some sharp moves below the surface. 2019 darlings like starbucks and visa are sharply lower laggards like macys and kraft heinz surging today. For now, lets bring in bob dahl thanks for joining us. The fact that we have seen this rotation out of growth into value the last couple of days, good or bad for the Broader Market mixed, as you commented earlier. I think look, the market was pricing a recession starting tomorrow morning, in my view and thats why everything defensive and high growth was bid way up and the laggards that are coming on now were just buried we dont have a great economy, but good enough that we can rotate a bit i think there are more legs to this rotational trade, assuming there is no recession anytime soon and thats my working premise. But the s p 500, overall, youre saying, was already pricing in recession i get it when people say the bond market was, but s p is not cheap overall. Not the market as a whole, necessarily. But what was going on inside the market in other words, utilities priced way up here. Machinery stocks priced way down here that was saying, economy, curtains the market itself, i agree with the tenor of your question, not necessarily focused on a recession. Steve, what do you think about the rotation weve seen the last week or so . Does that continue from here so, to bobs point, it depends on where rates go from here so when you have rates ticking up aggressively as weve seen in the last couple of days, you dont have to reach for the rei reits, the utilities and the staples. But as soon as rates flatten out or start to come back in, well see where the rubber hits the road i am long a bunch of chemical names, so im happy about this, because theyve been so beaten down so well see how long it really lasts from the point of conception until conclusion. And theres a lot that could happen with the overall market head winds and trade and Everything Else that needs to be digested so, bob, have earning expectation comes down enough for third and Fourth Quarter of this year . Adore do you think weve got further to fall . Further to go and even next year consensus is still plus ten next year my guess is plus five or six is more reality so well have more earnings debt degradations as time goes by which is not great for the market doesnt mean it goes down, but it cant make forward progress up quickly, top sector pick for next year . Its more about common factors. Free cash flow, give me the Free Cash Flow and please reinvest it in your business before you give me a Dividend Increase or a share buyback. Bob, great to see you we have a news alert on uber deirdre bosa has the details for us reporter wilf, uber says that 345 people across its engineering and product teams have been let go that makes up about 8 of the combined organizations and comes shortly after 400 people were let go from ubers Marketing Team in a statement, the company says our hope with these changes is to reset and improve how we work daytoday, ruthlessly prioritizing and always holding ourselves accountable to a high bar performance and agility. Interesting choice of words there, ruthlessly prioritizing. Dara took over as a consensus builder. We may be seeing a change in tone from uber and perhaps some more ruthless decisions. Is this desperate cost cutting to help turn around a share price, dee reporter well, as he says, theyre doing what needs to be done, but i should also note that they have lifted a hiring freeze in engineering, so i would call this them trying to get back on track and show investors that theyre willing to do what it takes, including letting people go, to get to that path to profitability deirdre, thank you very much na for that still ahead on closing bell, investors are waiting two major Bank Decisions over the next few weeks well talk to don kohn for his expectations about the ecb and the fed. And more uber news a new bill making its way through californias State Government that could put pressure on both uber and lyft well discuss the potential fallout ahead. And as we head to break, heres a check on our data tracker. The Nfib Small Business optimism index fell by 1. 6 points in august to its lowest reading since march and u. S. Job openings fell in july for the second straight month, according to the jolt survey, slipping by 31,000 stay with us closing bell will be right back [upbeat action music] pilot were going to be on the tarmac for another 45 minutes or so. Stand up if you are first stand up if youre a mother. If you are actively deployed, a veteran, or youre in a military family, please stand. I will tell you this, Southern New Hampshire university can change the whole trajectory of your life. Whai tell clients, etfs can follow an index, but which ones target your goals . Its not about quantity. Its about quality. No trendy stuff. I want etfs backed by research. Is it built for the longterm . My reputation depends on it. Flexshares etfs are designed and managed around investor objectives. So you can advise with confidence. Before investing, consider the Funds Investment objectives, risks, charges and expenses. Go to flexshares. Com for a prospectus containing this information. Read it carefully. Welcome back we have 43 minutes left to trade, were down 32 points on the dow. The spread today has been up 22 or down 112 at the low but you can see, the major indices all trading slightly lower as we stand. The big cap indices, i mean by that the russell is outperforming let me send it over to mike for todays market dashboard hey, mike. Heres what weve got for you. Take a closer look at this violent reversal action. Office space, kind of another slice of that, looking specifically at the commercial real estate stocks my favorite year, going to look at the s p in the context of some recent market history and then the money pit thats about the money that might be in households homes right now. Up the down staircase. So weve been talking about this kind of radical rotation thats been happening in the last couple of days its not as simple as out of growth into value. Thats certainly one aspect of it heres a look at a couple of etfs this is the msci momentum index. And from a pure value etf, the cheapest stocks in the s p 500 you dont often see the kind of mirror image action like that for two etfs representing both large cap stocks that shows you lots of money in motion so its coming out of not just growth, but defensive stocks essentially, secular growth or brandnew consumer stocks. Also crowded names so things like software, everybody was in a lot of the Big Hedge Fund stocks are being sold off hard its the systemic strategies that have owned a lot of what have been working in a slow growth environment and own almost none of the cheap cyclical stocks. Thats also reversing. To me, its not so much a careful reassessment of the market, its partially that at the margin, but yields going up kind of told you, this trade had gone far enough, at least for now, were seeing this radical reversal unclear how long it lasts, if its really just kind of a stutter step or a hiccup in this trend. Or if, in fact, its going to blossom into something different, a different market phase, guys. Its a good chart to capture the discussion weve been having since the start of the show, mike you just need a red stapler, thats my request as these next two hours play out youll have to explain that one to wilf. It was something workplace, movies, but i dont know what the 20 years ago, youve got to go back for that one youre dating us both okay thats the answer im too young. You can be dated as much as i can, morgan, so youre fine. After the break, shares of wendys getting slammed as the companys breakfast plans take a bite out of 2019 guidance. Well speak to an analyst who just downgraded that stock, next and later, well get some more comments from jamie dimon including his take on President Trumps desire for lower rates and w hofin Tech Startups are affecting the big banks. Dont go anywhere. Closing bell back in two i can. The two words whispered at the start of every race. Every new job. And attempt to parallel park. electrical current buzzing each new draft of every novel. typing clicks the finishing touch on every masterpiece. newborn cries it is humanitys official twoword war cry. Words that move us all forward. The same two words that Capital Group believes have the power to improve lives. And that, for over 85 years, have inspired us to help people achieve their financial goals. Talk to your advisor or consultant for investment risks and information. Welcome back to the closing bell. I