Says it will conduct daily repo operations to stabilize the lending market joining us for the hour, jim le camp happy friday investors dont like it when trade delegations cut their trip short. They dont, but god we can buy chinese dog leashes now. Theyve allowed a lot of things to happen and theyre not accelerating things so we need to get beyond what theyre ta talking about, beyond the saber rattling and looking at the actions. We havent ramped up tear i haves in a while then you look at the Federal Reserve board and while a lot of people were disappointed on wednesday when they didnt do too much more than say were going to cut it a quarter of a point, didnt give us a lot to go on in the future, it was more dovish than people look like he set the table for Balance Sheet expansion and Balance Sheet expansion may not be qe, but they could be mistaken as twins at a party its about the same thing. So yeah. I think some of these things are comeing off the boil whether its trade, Federal Reserve board. And if you look at the sell offs, weve seen in wall street, theyve been rather contained. Were still sitting close to highs. A lot of negativity out there. So i think that suggests a lot of nervous nellies would be shaken out of this market. Were going to to hawatch as have close to 3k kayla, some new details on that china delegation bob, sarah, highlights from her interview with clarida Steve Liesman brings us more commentary and news on walmart and their e cigarette announcement this afternoon. But kayla, first to you on trade. Well, carl, the talks are over here in waurk but that smaller chinese delegation will not be visiting u. S. Farms in montana and nebraska next week after all, the montana farm both confirming the vice minister of agricultural will be heading back to china in weekend officials had been arranging these visits, not through official Trump Administration channels the chief purdue confirmed knowledge of the trips yesterday, but said he didnt know whether they would produce any puchls deals in response to a question by eamon javers today, President Trump said purchases wiare good but not enough china has been starting to buy our agricultural product and some very big puchpupss. The president said he did not think the big deal would happen before the election, but its clear the chinese are trying to ramp up the pressure by going to their customers and vendors directly in the states thank you lets bring in bob with a look at Market Reaction we lost about 20 points on the news that china was cutting the trip short this highlights that trade talks with the marichal move of the market and have been herbally all year boeing, caterpillar, boeing technologies, all moved lower, but not too much another predictable group na moves on these, semiconductors otherwise, theyre up Nancy Pelosis drug pricing proposal would be on the senate finally, big volume several names. Reductions in share count and the buy bacaktivity. Bank of america, goldman sachs, while reducing their share count in the s p 500 back to you. We turn to the fed as well. Big interview is sarah today with richard his first appearance his wednesdays rate cut she joins us frhighlights hi, carl, clearly that growing division inside the Federal Reserve is front and center especially with two of the d dissent eers out, starting with the vice chairman about why its happen he reiterated its healthy and center of gravity was supportive of a cut. When i asked about future rate cuts and whether we could expect any, he was a little less clear. So i asked if it depended on what happens between trade on the u. S. And china heres what he said. Le me talk more broadly. The ecd marked down its global outlook. Obviously, the u. S. China relationship is important. Theres a slowdown in Global Capital spending manufacturing and theres some pretty important disinflationary forces but obviously, u. S. And china are part of that and we referred to trade policy uncertainty as a factor so, Global Growth e slowdown. Trade policy uncertainty and disinflationary pressures. Are those all getting worse or better right now. Certainly relative to where we were at the beginning of the year, i think theyre getting worse. I think the Global Economy had been marked down since july. The oecd downgraded relative to this summer. In terms of Global Growth, its getting worse. Its been pretty soft for a while now. The final cut of the year, he did point to the fact that several members of the Federal Reserve expect another cut this year as for the repo operations, the fact the Federal Reserve has had to intervene the shortterm lending market, he said its not a broconcern for the broader economime economy. When i asked if theyd have to expand, he said were going to discuss it in the october meeting. Take it as qe. As central banking oneonone. So didnt want to create any alarm bells about what was happen ng that shortterm financing market interesting arah. Jim, how many eye rolls are we going to get on that one. Reminds me of when bernanke went on 60 minutes and said then later said we are money printing werent you listening to me when i said we werent . So, yeah, i think the fact dissension on the fed board is is a good thing and the reason is these global central bankers seem to be opening on niche economics. What doesnt kill these economies will only make them stronger they keep applying the same medicines. Japan hasnt gotten better and the u. S. Industrial production was good this week. Housing. Consumers are in good shape. Jobs figures were good if you look at senior loan officer surveys, they say credits flowing right now i dont think we need to be stepping on the gas at the Federal Reserve board right now. Were focusing so much on that being the key area of strength and as it has been for some time. Is it Strong Enough to withstand some other weaker points within the u. S. Or Global Economy its a great question and i asked him, do you think the economy can e remain strong and carry the back of the economy. He said i have a great deal of confidence about the u. S. Consumer cited the very low unemployment numbers and the fact that the consumer has been so resilient in all of the data they are seeing despite some of the global head winds. As far as the risk factors, on the business side of the confidence equation. Less so on the consumer side of the equation and just in reference to that, i also asked about the oil spike that we saw this week. And whether that changed the economic look. Hes been through his oil shocks in the past where it has led the u. S. Into recession. Were not as vulnerable as an economy anywhereto those High Oil Prices its because we produce a lot of oil and the share of spending from the consume r is a lot les. Solidly future on the u. S. Consumer thank you for bringing us some comments. Be sure to join us on monday with incoming ecb president. I almost said cnbc president , which is a whole other thing two other fed officials making comments today and they were both dissenters for the Rate DecisionSteve Liesman has more thanks very much. Two of the three from the feds rate cut explaining today and they explain ed the differences jim bull lard wanted a cut by 50 basis points he said the Recession Risk is rising manufacturing may already be in reing session. Inflation, too low and better to act aggressively earlier but boston fed president Eric Rosengren who dissent ed for the second time looks at the same situation comes up with very different bullet points. He says really weird for the fed to be ease iing in good Economic Times given the 2 gdp numbers about what you would expect with this economy the risks are moderate including by the way, the trade risk he says inflations near target and rising then hes really worried about these potential costs to the economy the longer run costs of keeping rates too low for too long he said they can encourage excessive rs k taking, too much leverage and a reach he uses as an examine principle, he uses the real estate model known as coworking space. He did not name rework by name these models, theyre shortterm leases to small, less mature firms that could go under during a recession. Landlords and banks. They dont have much recourse back to the rework Parent Company or cospace and cities where theres a lot of concentration, they could face more defaults. Theres a big concern not the model will cause a downturn, but when we have one, it could make it worse steve, is this the first time youve heard from a fed official thats expressed concern a about a coworking space . Yes, i can go back several months and years and find concern about koconcentration of lending of the Banking System into commercial real estate. B obviously the separate question here, its related. This is the first time i remember a fed official has talked about we work specifically definitely interesting comments i believe at the nyu school of business my alma mater today. Thank you very much. Pleasure. Got news on the e cigarette front as walmart says the it will discontinue sales this is a big move. Worlds biggest retailer just another step for them to take as it looks on tightening the restrictions on nicotine product sales. I obtained a memo sent to walmart employees today saying quote, given the growing federal state and leg ra torre complexity of the cigarette, u. S. And sams club stores are going to stop selling e cigarettes once it gets through its inventory. Now as of july 1st of this year, you might remember walmart increase to by tobacco productso the age of 21 and said this year it would stop selling the fruit and dessert flavors. So it pulled back on those as those being at least marketed to some of the younger age smokers. An interesting move. Obviously we dont know exactly how big the size of the business at walmart, but from what i understand, relatively small so i dont know if it will have a Material Impact on sales, but its still a very big move would you argue their Category Management after their gun memo week and now this has gotten more active thats a food point, especially b on big controversial iras and things that have to do with Public Health and policy. This is the age of a new and different walmart and this is just another step. As no one this week takes the chair of the business round table. I know two people that started spoking again after they tried vaping they used to smoke, they quit, this vaping all about and it delivered such a nicotine rucsh to them, i used to like that stuff s. A lot of unintended consequences here. Pretty soon, were going to be talking about Something Else ive been Walking Around here and smell ed a whole lot of something that isnt vaping. Me, too welcome to new york by the way, all this e cigarette controversy reminds us, a special presentation tonight of cnbcs documentary, vaporized. Americas e cigarette addiction airs tonight at 10 00 p. M. Eastern. Still ahead, tim cook making an appearance at apples Manhattan Store as new iphones and watches hit the shelves. Well discuss with an analyst. And later, Mark Zuckerberg meeting with President Trump cara joins us to break it down as big tech faces increased skrcrutiny from capitol hill. Zblncht heres a live look at the Global Strike happening in San Francisco. 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Just over 40 minutes left to trade on this friday rebalance. Look for a surge in volume perhaps at the end of f the day, but for the time being, dow down less than a third of a percent over to mike for todays market dashboard. Take a look at relationship issues interplay of various r parts of the market give us a gauge on whether were in for a risk mode still the one, thats about apple. It has the ability to carry this market for a little longer then getting past the hurt one year ago today, the market piqued for year 2018 then date night updated. Look at the really the back and forth within the streaming area and some winners and louisers that are shaping up. Relationship issues. This is the very clean u. S. Versus the world type of analys analysis this goes back two years and clear down trend inability to make new highs since early 2018 this gap by the way, itted august 22nd. Maybe theres a rotation now not clear, just a switch back move heres a good fix on the yield dynamic. They havent given much back despite the fact theyre off their lows these things havent told us the market has changed its character. Were into a higher yield. More cyclical, more risk on mode thank you very much tim, what do you make of the banks since the end . Havent had much movement. None have tried to exit that and all nine have gone back to zero so whats happened here in the United States . We were raising rates. Now were cutting rates. Ever since this economic recovery started, the financials have been giving head fakes. Theyll rally, pull back in. Theyre healthier now than in quite some time, but if youre worried about a recession, a global slowdown, is lending really going to accelerate here . And Interest Rates have been low so for long, is lending really going to explode i dont think so i think the banks arent going to blow up on anybody. I think theyre in fairly good shape. Are we going to get a lot of growth out of the banks . I dont think so youre not heartened by any mortgage activity, refi, anything like that youll, youll get small rallies. You draw millennials off the sidelines. Strarting to buy homes and have their first and second kid, but cant afford big homes, so yeah, were going geting a boost i think the howing market is okay do i think a Growth Engine for the economy . No bulls will still argument the worst european banks do, more market share gains for us. Those economies arent going as well as ours ten year yields are so much higher our market has been pretty resilient. Money continuing to come to the u. S. The dollar just keeps getter stronger is he going to set the world be 2017 all over again no, but i think we can grind higher mikes first board there where the just powers higher weve had some narrowing of the spread between the u. S. And the fwloeb globe in the last several years, it comes and grows. Where are you going to get growth around the world . Not europe right now if china deteriorates, its going to affect the emerging markets. Right now, the u. S. Is the prettiest horse in the glu factory here after the break, wall street is divided on roku with the stock on pace for its worst week ever, but well speak with an analyst who upped his price on the stock and says now is the time to buy. Later, well talk to the pilot turned New York Times reporter with a new piece on what really brought down the 737 max. Take a look at treasuries here jim mentioning the tenyear yield, 30year, fell around 6 closing bell is back after a break. I get it all the time. Have you lost weight . Of course i have ever since i started renting from national. Because national lets me lose the wait at the counter. And choose any car in the aisle. And i dont wait when i return, thanks to drop go. At national, i can lose the wait. And keep it off. Looking good, patrick. I know. vo go national. Go like a pro. It also has the highest growth in manufacturing jobs in the us. Its a competition for the talent. Employees need more than just a paycheck. You definitely want to take advantage of all the benefits you can get. 2 3 of employees said that the workplace is an important source for personal savings and protection solutions. The workplace should be a source of financial security. Keeping your people happy is what keeps your people. Thats Financial Wellness. Put your employees on a path to Financial Wellness with prudential. Time now to get the word on the street jpmorgan out with a note on clorox asking will litter be their next problem child. Theyre losing market share and highlights the challenges in kitty litter meantime, jpmorgan maintaining an understood weight on the 143 price target with a 66 and 263 price target respectively firm sees inflection points in a slowly declining industry. Positive on the new ad campaign which invokes chill and relaxation and beer has had a tough run relative to spirits. It has and if you look at people who drink the most b, millennials, young people, what they drink, beer is not as big a part of their catalog as it was 20 and 30 years ago. Around my house, its a consumer staple but if you look at the B