Stock market as well the nikkei was up about 1 the hang seng up about a quarter. In europe, some active trading, you are going to see some red there. Dax is down. Cac off by. 6 the yields there have come under pressure it looked like they were a little weaker as well. Just above that. The 10year at 1. 53 the two year at 1. 444. China conflict escalating the u. S. Adding more companies to the black list and china scrapping the nba preseason games. Eunice yoon joins us with the latest it is not going to a very good place the financial fall out just continues for a second day tencent said it is suspending broadcast of the games for now, these are preseason games. This came a couple hours after the state broadcaster, cctv which has a very long relationship says it will halt all preseason games as well. In their statement, the cctv said we are strongly dissatisfied with the commissioners defense for the Houston Rockets tweet supporting the hong kong protesters saying we believe any speech that challenges sovereignty and stability is not within the scope of freedom of speech he told reporters when he does come to china and will be visiting shanghai next week, hell have conversations with officials to smooth things over. Those conversations might not go over very well there has been such a swift punishment for those comments. The Chinese Basketball Association has canceled all nba games for october 19 and 20. A couple of minutes ago, vivo said it is putting its partnership on ice after all day, we were hearing several celebrities denouncing the nba saying they were also going to suspend their relationships and the term Houston Rockets is no longer searchable on alibaba and jd shopping site. This shows how challengings it right now when it comes to anyone talking about hong kong one more thing on that the Foreign Ministry today gave a hint in a statement it said about a completely different subject that is the u. S. Commerce departments decision to expand the black list for some of the firms because of the Muslim Population in the far west china said the u. S. Should stop interfering in Chinese Affairs they want the Trump Administration and the u. S. More broadly to butt out of their business adam silver has made some is comments you mentioned he is in asia. He said first of all, wed like those connected to the nba to be sensitive to those he said hes upset weve upset fans but not apologizing for his general manager exercising freedom of expression. In china, they have i believe double the number of fans in terms of people in the the United States. Walking a fine line with some of these comments thats right. It is a fine line they have to walk Chinese Companies as well. Right after tencent made that announcement theyd cut ties, there was a lot of discussion on line here about how they inked a h huge deal to get the rights to air nba games. The comment you could see the most is that tencent decided to choose life instead of money that was kind of a hint. If you want to do business in china, you have to fall in line with what beijing wants. We were talking yesterday about joe who was one of the top executives i know hes just stepped down. He owns the nets here in the United States coming out with that essay almost yesterday argument on behalf seemingly of the Chinese Government and whether you think that was directed that is really hard to say whether or not it is directed. There are a lot of people who said it seemed as though he was saying all the right things you would see in a Foreign Ministry statement. He was trying to make the point that there is some history that has gone back many, many years and the reason why china would feel so sensitive about hong kong and having what they would see as foreign forces. Either american or british coming in. He was trying to explain that. I dont know if it was necessarily going over very well even in china, his background is canadian and taiwanese hes been able to benefit in a way a lot of mainland chinese havent been able to in terms of freedoms his point is, that freedom of speech is an important American Value but there are some, what he described as thirdrail issues that shouldnt be touched. It is not openly discussed on line a lot of people are critical he bought this stake in the nets believing they would benefit given his position and prominence and now, the nba has not taken foreign money as a foreign owner of the league. Did he clear his statement with the nba . Is he now a prop to the degree some believe hes a prop to the Chinese Government the whole thing is a very complicated situation. I think it goes back to what you were saying that adam silver has to walk this fine line it looked as though he was trying to support anybody, any employees that they have speaking their mind. It looked as though he was trying to be supportive of people that would Say Something positive with the hong kong protesters and also with joe that he would want him to be able to say what he wants. That was interesting and you didnt have money interest involved, it seems like a no brainer all of us would say, gosh, we sort of stand with the hong kong protesters we understand what they are saying and we are behind them in striving for more freedom and more human rights. It seems like sort of an inokous thing to say unless you have a lot of money on the line nba players and coaches can criticize here it is going to get worse in terms of two sides i think it started earlier when you saw the debate around the Hong Kong Airline cathay pacific. They came under tremendous pressure and staff, the people that protested to go after some of these people. That sparked a discussion even with American Companies in the region as to how much influence, beijing would have or feel that they could have on the decisions of International Companies you are seeing that spread out into the nba and maybe even other companies. It would appear, the complaints im hearing is that beijing appears to shape the way the outside world discusses china and China Affairs in the same way that the people here have their comments sensored. You dont want to be seen coddling the communist party with the uighurs and the internment camps the uighurs then again, we are in trade talks with china and we deal with saudi arabia. There is a lot of hypocrisy. A lot comes from that there are financial interests involved that sort of take precedent over c conscience and human rights. We have an update from hong kong it was another night of violence as Police Used Tear Gas and a show of force to clear protesters two protesters were taken to court and charged with violating the new ban on masks overnight, carrie lam said they have no plans to introduce more powers and plunging more than 50 tourism and hotels have all been hit hard you know we got the knnoble pri for medicine and today for physics for understanding the origins of the universe and discovering an exo planet, a planet outside our solar system. Now they are out circling other stars. Tomorrow is chemistry, thursday is literature and there is two this year because they didnt give one last year they make up for it 2018 and 2019 wow remember bob dillon won one well see german chancellor merkel told Boris Johnson that a brexit deal is essentially impossible. Merkel is said to be Standing Firm on her position that Northern Ireland would have to remain aligned with the european union. 1. 2236 is the latest trade under a little bit of pressure the dax stands by 1 those declines stand up. The cac is down and the ftse is down as well down by just over 1 in spain. Here in the United States, losses have accelerated too. S p futures and the nasdaq down. All of this talk, tensions with brexit, trade talks, concerns about all of those things kind of putting an impact on articles today. You see that was surprising because the pound really did sell off coming up, dipping and signaling a turnaround in the struggling chip market we head to break, a look at the biggest premarket specifically in the dow i can shine, i can shine, i can shine. Imma do what im made to do. Built for excellence. You start from the foundation up. The excellence is reaching dreams and chasing them at the same time. The excellence is reaching dreams and welcome back. One stock to watch take a look at samsung expecting Third Quarter profits to fall more than 50 . That would beat forecasts thanks to strong sails of the new galaxy note 10 saying that would offset the slump. A 50 drop they beat on the other side. You look at that chart, it is hard to make heads or tails there he joining us now chief analyst and portfolio manager. Both of you highlight the same three issues we are talking about. That preyed issue is number one. You are worried about that trade issue and how earnings played out. Those are the three. Does the nba factor into any of this are those the only three things now . We need to have a better deal than just a quick deal earnings season is about to kick off everybody always resets their earnings where theyll push will be 2020. Which selts up for acceleration and hope through the remainder of the year sos that one thing that has changed. We are a bit caution now importantly revenues are forecasted to increase that val dates remember Third Quarter last year we were at that record Holiday Shopping season. That really seems like why we are down 165 now not saying that trade cant happen there is positives and negatives. The wildcard is what happened with earnings and the out look that will be the nearest data point. Youd be buying dips based on that or lightening up for the long term. Looking at consumer discretionary. I think there is more upside potential. There will belongterm volatility on the way. Wed like to see the Capital Spending come back clearly numbers were not great one bright spot we do see is in taiwan what well see there, youll see samsung talking about memory we think there is a recovery that is a bright spot we are looking to deploy capital. Either of you follow the political implications when do you start to factor those into what you dowith you portfolio . I think those things hit the market once we find out who the democrat likelihood. Right now, not on your radar . Not on my radar there is an article that says it is not too early to start preparing for an Elizabeth Warren presidency. Health care has been hit hard probably a bit because of that i dont think either candidate will stand up and defend they want lower drug prices in an Election Year that sken ar kncenario to be moe cautious on. Mark cuban is tied with beto. You can buy a contract for more than one cent now hillary is up four or five cents thats not even on the radar. Bloomberg is there. It is fair to say Elizabeth Warren now shes at 30 cents now and if Bernie Sanders leaves the race these arent percentages these are bets it makes sense. It is weird because trump is at 40 cents but the democrat taking the white house is at 57 cents it makes no sense. The closest democrat is Elizabeth Warren but she was down after the pregnancy did you see that yesterday what do you think of that . No comment whatsoever thats a lot of noise taiwan semiconductor. Earnings are important when we come back, a weaker out look on main street. The read of health on Small Business in america. Up next. Well be right back. The lexus es. Every curve, every innovation, every feeling. A product of mastery. Lease the 2019 es 350 for 379 month for 36 months. Experience amazing at your lexus dealer. Welcome back. The nfib is out with its reading on Small Business optimism the index dropping by 1. 3 points to 101. 8 as the out look on main street weakens talking about a recession or weaker growth are becoming more prevalent calling it contagious. A look at how this is tracking we are down about 7 points from the biggest high from last summer those who believe now is a good time to expand their business. No gains as job openings and satisfaction were flat the major issue. 23 say it is their single most important problem. Down a few points followed by taxes. Government red tape and the cost of labor tied as businesses continue to attract talent about onethird of members say tariffs have negatively impacted their businesses so far. Not a surprise. Given what weve heard, those are similar. Looking at how people are feeling about things interesting that labor quality is what they are worried about it is really tough to find skilled and unskilled labor. It is so tough to find workers as you said, there is a lot of chatter on the minds now coming up, we got a new backlash on boeing the Company Facing 100 million lawsuit over the grounded 737 max planes we have details. We should mention european rates will make it harder to get this plane off the ground a study linking e cigarettes to cancer in mice take a look at yesterdays s p 500 winners and losers 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. Announcer welcome back you are watching squawk box live from the marketsite in times square good morning. Welcome back take a look at u. S. Equity futures. The dow looks like it will open down about 138 points now. Nasdaq off about 38 points and the s p 500 looking off about 15 points news to bring you now on boeing. A new report saying friction between the u. S. Could delay the return of the max to service again. Those expectations would get off the ground in this calendar year if it doesnt win in 2020 and really, is it possible for the faa to approve this plane before regulators or from an optics perspective. Do they have to wait for regulators to say yes, first it used to be the faa was seen as gold standard. In this case, they are concerned, the safety agency, they say the faa and boeing they dont think have adequately reconfigured the safety. They aim to add redid you know redundancy they really feel like they have to wait to hear from other regulators first in this case, given what is taken place. Complicated situation there. Also by the way, in the Airline Industry in the United States that think this has become political and think in this situation with our decision for more tan i haves on things like cheese and other things changing the rules of the game we should tell you there is a lawsuit taking place that southwest pilots have filed a lawsuit alleging the grounding of the max has cost them more than 100 million in loss of wages this is an interesting case. With 34 max in the fleet p when the jet was grounded theying they agreed to by more after boeings sales pitch and they say boeings errors have cost the lives of 346 people, damaged the bond between pilots and passengers and reduced opportunities. Boeing says the lawsuit is meritless but now you have another hurdle in terms of gaining the trust of pilots in the world about this claim you have an ongoing lawsuit when southwest brings this plane back, do the pilots say we are not doing it until this lawsuit is settled it all comes back to money always. If you are boeing 0 do you try to settle the suit this is mice. We know these tests dont necessarily extrapolate to humanitarians but now linking exposure to nicotine to cancer in mice causing dna damage in the lungs and bladder. 57 prechance russ leasons on the bladder. This is what we talk about all the time we just had someone on the other day saying, no, no evidence that nicotine is not harmful. You dont have the tar and the smoke, you just have the Delivery System which is not harmful. I dont know i dont think we know. Telling us you probably dont want to use the lungs as a way of ingesting any drug. Whether nicotine itself is a harmful substance. I made the point, you are not born jonesing for nicotine alcohol, same thing it is not the way it tastes, the feeling you get. What does nicotine do for you . I dont know. Wa walgreens and kroger will stop selling e cigarettes i dont want a nannie state but i dont like vaping. What about secondhand vape . Have we talked about that yet . I dont like the way it looks. You are mostly covered in fog. It is mostly millennials i do see a lot of young people doing it. Im not a fan. Im glad walgreens and others are doing this i know. I dont know what these stores will sell. Im surprised you are not arguing for personal responsibility i am arguing for that youve got your friend from digdi dicks coming on and tax safe havens looking for value. Thats coming up next. And Dicks Sporting Good ceo edward stack, thats coming up on cnbc. Ch and every one of us. Together with ibm, we created a whole new kind of School Called ptech. Within six years, students can graduate with a high school diploma, a college degree, and a pathway to a competitive job. You know whats going up today . My poster. Today, there are more than a hundred thousand ptech students around the world. Its a game changer. Apple is hitting yeartodate highs. Some say there are trade war risks that are not priced in the stock at this point. Looking to be safe in technology joining us now the managing director of consumer technology. Thank you for being here you think things are heating up. I would tend to agree with you what does this mean for Technology Number one, we dont think the u. S. china trade relations are going to ease up it is going to inte