Lets take a look at what is happening in asia too. Those markets were closed. Hang seng off by. 1 and the shanghai up about a quarter percent. Youll see at this hour, slight gains across the board italy up three major averages up. 1 to. 2 . The tenyear is yielding 1. 772 . The 30year at 1. 28. We were just talking about all of this. All of those moves made. Pretty confusing to figure out what was happening and why i think there are a lot of people looking at a lot of these small events and does it have bigger implications. In this environment where everyone is feeling uncertain. I think these fractures make more people nervous. Whether this is a bigger issue, i will know this weighs on investors sieky i had a 2007, summer of 2007 bnp scare. There was maybe 2 billion that was frozen, sub prime and there was a freak out. At the time, it didnt feel meaningful this is the first time the fed stepped in the only time they did this was in the middle of a crisis. Thats right. This is a warning sign sometimes technical factors are really technical factors there is nothing else. I can say on the black rock trading floor, there was no panic. Interesting just a handful of headlines. Trying to make sense of why they were doing this. Not sure of how much it was happening. I agree a little confusing all of these small things can together really way on how investors act. In the same vein, lets take oil and crude. The issue where even 48 hours ago, there was a freak out they jump by more than 10 after the weekend attacks. Gave back much of those gains the kingdom minister said that that was lost has already been restored indication a third of it may be back on line they are ahead of where people were expecting things to be. They said the attacks wont affect or impact aramcos upcoming ipo now going to be going public and moving ahead nonetheless the country is committed to that ipo and set to hold a News Conference later we expect to hold a lot more about who they think was behind tha that attack. Continuing to deny the attack. We cant believe anything it is going to be six months before they are back on line was the original estimate. Im saying when you are trying to decide right after an event, it is best to hold tight. If we hear that sixmonth disruption, even though we dont report as much skbroo talking about 30 to 40day supply. Six months, i was thinking, wow, they must really be damaged. Weve had power go out and transformers saying, look, when there is even just a fire, it creates lasting damage in this case, it is not going to be six months bringing you the other big corporate story. New developments in weworks push to go publish still before years end adam neumann said he had been, quote, humbled by the shelved ipo and received the role he needed to play he went on to say the weak debut for others contributed to his decision to delay. I sat with him now three or four months ago uber as ipo had taken place. I said to him, how much focus do you put, how anxious are you at the time it was, doesnt matter to me, irrelevant im just suggesting all of this dare i say, there is an element of hypocrisy here. Well, it doesnt matter if you can still get investors interested in you. Having seen what happened to uber, to lyft and smiledirectclub. Because they kicked the tires a little harder. Right if the prices look right you dont have to be concerned about what came before you there will be demand for your shares fedex shares are folding like wet cardboard. That was on fast money last night. Perfect et pretty good. You ever put the trash out in the rain wet cardboard. It is gross. When i read that, i said that person needs a raise and then they messaged me and said im going to use that hes still watching this morning. We appreciate it a big drop in profit sharply cut its output for the year continuing to face weakness in its express unit buying hurt by the u. S. china trade war, amazon, many things here is fred smith on the Conference Call. There is no company or person that has been more vocal in our option to trade policies we are pursuing it is not just the u. S i think china is pursuing bad trade policy ahead of stronger Online Shopping but also spending heavily on transportation and equipment to keep up f fedex ended the contract in months addressing the loss of amazons business the amazon contracts represented a small proportion of revenues, the nature of our business is such that the profits will be affected with significant flow through to the bottom line. We have closed additional business to replace this traffic. They have other deals to replace that with walmart and dicks sporting goods. If it flows through to the bottom line. Small impact but flows through means it was a small impact yo impacto impact outcome chewy. I do everything i can for pet food what did you decide . About the possibility. A dog in the household . Did you put it off. How long can you stall the boys watch the show if it was going to be coming, and it was a surprise. Let me ask you, the more i talk about it, the more they bug you . You believe me, youll be just around germs all the time. I think youll get sick less you want the dog for the kids for the first 20 years of their life for their immunity. At my point, thats over for Mental Health there is a reason all dogs go to heaven, they are all good. They are you know this. I do. I also have a golden retriever wonderful brian, he has these little dogs. Dogs are good for Mental Health ill have to get you more. I already have three. Why President Trump will be likely disappointed. Once we get to the quarter point, we are fine look at the biggest premarket winners and losers in the dow. S been omitted to avoid spoiling this is us for the few who havent seen it. Season 4 of this is us is almost here. To catch every past episode, just say this is us into your xfinity voice remote. Like the one where i. [ buzzer ] or the one where we show. [ buzzer ] when he was a. [ buzzer ] plus you can watch this is us anywhere with Xfinity Stream app. Especially the. [ buzzer ] episode. Awww, that ones my favorite. Catch every episode of this is us with xfinity. It is a big day for the Federal Reserve. Setting the policy decision in the next few hours and injecting another 25point rate cut. Another likely to disappoint President Trump who has called on the fed bone heads. Im quoting. That is actually in the telepromter. Was it . It was. Look. It is right there. I want to have a band, jay and the bone heads bath of pride wear it well how you doing joining us now, alec young our guest host for the hour, kate moore i guess i shouldnt even ask whether the day will come where the overall economy is not as dependent on every minute reaction every little minute action is just the underlying economy. The fed fund futures have gone from 95 chance to 65 because we had better than expected retail sales. I think the market is feeling a little more comfortable. The economy is not on life support. They are cutting from an insurance perspective. I dont think they are cutting because of tremendous nearterm urgency. His range is 2,700 to 3,000. China is coming to talk do you raise to the low end or the high end. I kind of see the overall point. There is a possibility well be pleasantly surprised they said the talks disappointment market sell off in order to get consensus earning growth is around 9 . You need current tariffs to be removed and you need a solid positive trade deal. The market is 17 times to get the expansion you need 7, 8, 9, 10 Earnings Growth. Well probably beat that and come in flat there is no room the tax cut hit a really high bar. Most people are impressed the market has done as well. I would argue that earnings likely to get down 100 in that camp. The valuation on that story is the rest of the opportunity set. Nothing is particularly cheap. Can we stay at 17 times perhaps get another turn on. It is highly possible. If the numbers come down, well be slightly above. You think we can get to 19 times . I would argue. I think it is possible. If we get some of the ticks on the policy side. You mention china trade stuff. You can get an environment the market grinds a little higher. While i see all of the rational for strategists on the street to keep the range between 2,900 and 3,000. Even as a bull, you are not really pounding the table. Relative to where i was six to nine months ago, no, im not. Why not you dont want people to say, yeah, it is not an easy sale and go higher. No. You have all of the sentiment stuff going for you. Weve had to going the entire run, unloved some of the macrodata has been strong. We are quite constructive on the consumer in general. Tell them, kate if you dont have that deterioration there, are we really worried we need to take over aggressively in the overall market if you look at the valuations on the home depot, mcdonalds these are not starbucks. These are expensive. Weve had the move a lot of people are like, wait a minute, these stocks are running too far. Companies like waste management. Great companies but youve got a lot of these trading at 25, 30 earnings dont imply the stocks you just mentioned are 25, 30 which ones mcdonalds is over 200. These are expensive. Are they expensive with sustainable Earnings Growth or because theyll be able to grow throu throughout all parts of the cycle. They are willing to pay a couple of turns higher. Im just saying companies will need time to grow those the fed is still in cutting mode there is no reason to think that rates are going to spike no reason to think you are going to have a multiple contraction it is hard to argue trade is the only wildcard there is big structural al issues that will not be resolved overnight. If they can get rid of the tariffs. I think thats what we need to see. What about the election people Start Talking about some pretty extreme views the market tends to look out six to nine months the other thing, we dont even know who the nominee is. Right it does look like that is shoerg up the street thinks trump is going to win so they dont take these all that seriously the track record is just not that good. Investors get ahead and overexcited and we draw down going to year end, do you expect higher or lower levels . A lot depends on what happens in october i think we know biden and warren are separating themselves two different it is going to be biden warren i think biden warren hell serve one term he thinks thats the ticket he thinks if biden wins, warren will be on the ticket. Make your 6 23 i could change it at 7 23 but right now, thats my call. Viewers are demanding moore. Kate will be with us when we return you have heard that before i have indeed today, the apple watch hes been testing the new watch. Hell join us with the pros and cons and whether im going to have to get a new one. Back in a moment it was sophies big day. By the way, shes the next mozart. As usual we were behind schedule. But sophies enthusiasm cannot be dampened. Not even by a runaway donut. We powered through it in our toyota prius. Because a stars got to shine, no matter what. Its unbelievable what you can do in the prius. Toyota lets go places. And now for their service to the community, we present limu emu doug with this key to the city. [ applause ] its an honor to tell you that Liberty Mutual customizes your Car Insurance so you only pay for what you need. And now we need to get back to work. [ applause and band playing ] only pay for what you need. Liberty. Liberty. Liberty. Liberty. When i needed to create a better visitor experience. Improve our workflow. Attract new customers. Thats when fastsigns recommended fleet graphics. Yeah, and now business is rolling in. Get started at fastsigns. Com. Welcome back to squawk box this morning the apple review here. Wearing it with the always on screen thats the big deal. And a compass which doesnt sound like a big deal but ill explain. Previously, you would let the watch idle and it would turn off. Now when you are on the treadmill, now it is always on certain apps the worst thing is not having it always on when you are in a meeting and you need to see what time it is, you have to do this little arm twitch and now everyone is looking at you it is hard to go back i had the series 4 apple told me 70 of its buyers are new buyers this is the best selling watch in the world now it doesnt surprise me. Series 3 is 200. This thing will set you back 400 right for those people, is this necessary . If you want the best apple watch now. If you are new to this and you want to check it out, get the series 3, it is 200 the compass now when you come out of the subway you can use your compass and figure out where you are by the way, she wears an ora ring i wear one to sleep. Joe doesnt think it is that attractive i think it is one of the greatest devices i dont endorse products but it has changed my sleeping patterns apple watch doesnt have sleeping there are Third Party Apps it is uncomfortable to wear overnight and the battery issue. You need to charge it. Apple has said they are waiting to get it right. They bought bet it i dont know what they are doing with it. You walked in one day about how you hadnt slept all night you knew you hadnt. You had the read thing telling you hadnt slept which makes you feel worse about things. When i see im really trending in the wrong direction, it says take action. I dont need anybody to tell me that. The other thing is the value. The value of deep sleep, which is different than rem sleep. Because i sometime ring and the watch at the same time to see how they are doing i think the ring is more accurate do you remember the pioneers, they set off in a covered wagon. They had compasses. They could never go fully no fossil fuels your world is going to change. We are so pam perrperred i love gadgets. Did you know there is a patch. It will monitor your glucose and your blood you can connect it to the phone. Do you admire them . Do you think you are aspiring i cant sleep without airconditioning you could start with a series 3. Ive worked hard my whole life for a nice watch. I want to be like odell. When we come back, well tell you about new challenges for some of the Biggest Challenges in the United States and vaping alert. A new headline out of china. Well be right back. When you retire will you or will you just be you, without the constraints of a full time job . You can grow your Retirement Savings with pacific life and create the future thats most meaningful to you. Which means you can retire, without retiring from life. Having the flexibility to retire on your terms. Thats the power of pacific. Ask your financial professional about pacific life today. Announcer welcome back you are watching squawk box. Welcome back. It is time for the executive edge Tech Companies under fire in the u. S. And europe. Lawmakers grilled Justice Department and ftc officials over investigations to big tech call the the probes empty suits. Apple continues to fright European Union watch dogs in court calling the 14 billion proposed deal in back taxes something that defies reality and common sense today, facebook, google and twitter are set to testify fighting on line extremeism. And juul sales have been stopped in china just days after they went on sale will. Part of it might be a health thing or even a trade thing. A lot of speculation out there meantime, similar things happening in new york but a bit of a different way officials here have become the second state to ban flavored ecigarettes voting to adopt the request that applies to all flavored products other than tobacco. He left out i think there is a problem menthol that is still allowed. Tobacco still allowed. Retailers have a twoweek grace period coming up, ride hailing drivers staging protests yesterday in new york. Well tell you why and talk with the former general manager of uber in new york and dont list our interview with ken burns to discuss his latest project pretty interesting all kinds of Country Music that is uniquely american you are watching squawk box on cnbc through the at t network, edgetoedge intelligence gives you the power to see every corner of your growing business. From managing inventory. To detecting and preventing threats. To scaling up your production. Giving you a nice big edge over your competition. Thats the power of edgetoedge intelligence. Thats where i feel normal. Having an annuity tells me my retirement is protected. Learn more at retire your risk dot org. You still have service . Call the Insurance Company sfx [phone ringing] its them, calling us. Its going to be a week before they can get through on these roads shhh, sorry, i didnt catch that. I said ask how soon they can be here right now . Whats now . He says theyre surveying our property now theyre probably at the wrong house i dont see any hovering his name is hovering . Look up . By automating claims with Machine Learning and analytics, cognizant is helping Insurance Companies advance how they serve even hard to reach customers. Cool thats what happens in golf nothiand in life. Ily. Im very fortunate i can lean on people, and that for me is what teamwork is all about. You cant do everything yourself. You need someone to guide you and help you make those tough decisions, thats Morgan Stanley. Theyre industry leaders, but the most important thing is they want to do it the right way. Im really excited to be part of the Morgan Stanley team. Im justin rose. We are Morgan Stanley. Welcome back uber and lyft drivers protesting in new york over the new app and how long drivers can use the app. This is different. Congestion prices earlier this year was something uber supported. This is symptoms of what is happening across the company who is responsible for the changes and the new rules . Joining us is josh moore Founding Partner of global capital. Jed, drivers shut down the fdr in rush hour traffic something we are seeing across the country. What do you think . Shutting down traffic is not a good way to bring anyone to your side. Ultimately, unintended consequences of laws created with good intention. Ultimately, if lyft shuts down their app, uber has to respond it is more of a utilization that really take away the flexibility that drivers join. It is abo