With Steve Liesman and fresh comments frommed fed chairman. Jerome powell sieve times said Interest Rate policy depends on the Economic Data he added the economy is overall in good shape despite troubles on the horizontale many indicator show a strong labor market solid job gates. Unemployment at half century low and rising prime i age participation. There are risks. Prin will i from Global Developments growth around the world mass weakened the last year and a half and uncertainties apprehend trade and, brexit and other issues close risks whats did are does it mean for the outlook process . He appeared neutral about what the fed would do at the late october meeting. Markets took his comments as affirming expect aches for rate cuts jp morgan if the fed leadership wanted to push back gesticulate against expectations we think powell would have chosen language not calling out downside risk. Speaking in denver, the fed chair said the central bank will increase the size of the Balance Sheet on permanent days. Reducing the policy from last year which swild swelled during the financial crisis trying to get more to a normal level. Growth of the Balance Sheet for reserve management purposes should in no way be cuffed kuchzed with the large scale asset purchase plasma we deployed after the financial crisis neither of the recent technical issues for the purchases of treasury bills we contemplate to resolve them should materially alter the stance of monetary policy. This was an opportunity for powell to change the Market Expectations for the october meeting. And he seems to have chosen not to do so so another quarter point will be delivered by the fed around halloween, guys. Steve increasing the size of the Balance Sheet can that be be considered qe. If you want i mean, look what they have to do is permanently replace the temporary operations they have done to get dsh to provide greater liquidity its about 200 billion of work they need to do. The smallest quantitative easing they did was 600 billion and then they grow the Balance Sheet based on the economy i want noh an intent to lower longterm Interest Rates its an attempt to provide ample reserves to keep the funds rate where they put it. Its not intenten and not in actual size or not in execution is it quantitative easing i would argue. Steve liesman now to the other headline rocking markets today, the Trump Administration turning up the heat on china ahead of thursdays trade talks lets get to eamon at the white house with the details. The trade talks are scheduled for thursday and friday. Thats when the higher level officials will meet to hash out all the differences. But ahead of that what we have seen now is in flurry of actions and threats back and forth from the chinese side to the u. S. Side and vice versa laid out some of them here on this graphic you can keep track of everythinghappening. The u. S. Versus china first of all, the u. S. Is talking about restricting government investments in chinese companies. Thats one idea under discussion also black lifting a number of firms on the chinese side. And then finally the visa restrictions we saw on chinese officials in the wake of the crackdown that we saw in china on a Minority Group there. All those actions or threats taken by the u. S. Side on the chinese side, though, this action against the nba is one key area where they are putting pressure on an american entity in a visible and very public way. And were also seeing criticism from the Chinese Media anyway of apple, inc, over an app that some protesters are using to navigate in hong kong during the protests saying that apple is not sensitive to the feelings of the Chinese People a lot of tension points ahead of the talks thursday and friday. Well see if any of that moves the needle the president says he doesnt want a small deal. He still wants that big deal he is talking about, the big unknown this week is whether this impeachment effort against the president is going to change the dynamic here in any way as the chinese sit down with their american counterparts, melissa. Eamon, is the chinese delegation in town there are lower levels here now yes. I dont know when the higher level officials will be in town. About but we have seen some already arrive so yes but well see whether they actually go forward with the meetings because at this point you would say that just about anything could happen here the expectation is everybody will sit down around a table and hash it out later in the week. Eamon, thank you. Eamon javers at the white house. This seems to be like the we are turning up the heat gradually degree by degree as we approach october 11th. Its that whole you put the frog in the thing of water. Boiling point when does it feel the boil . Im not sure. Are we get bag being to frogs. Nobody does that to frogs. Nobody. No frogsy injured or harmed. In the making of the show. Making of the show. But. The more you know. Love the music. And you wonder if you know mr. Powells comments today, President Trump said is a now the fed finally has my back. Now i can ratchet up trade tension talks. Without question im a conspiracy theorist it makes sense. Wall it nag you want, thats exactly what it is quantitative easing. Because this time last year we were on autopilot for reduction and now on autopilot the other way with the s p 500 effectively at alltime highs. I think its crazy the reason the market soltd off in my opinion was the rhetoric we talked about President Trump. The fed might have your back but, again ill say again, this started in march of 2018 its now october i dont think were any closer today than we were 18 months ago. So eamon said Something Interesting about the trade talks later this woke. He said anything could happen. I think thats unically anything could happen i think its likely not a lot happens. Isnt that something. Well, zblot i think that falls under anything back to the boiling frogs. My point my point very simply is give the rhetoric early this week and over the weekend the likelihood of a broad deal that is going to be great for Economic Growth globally and great for the stock market is not likely at this point now we have the situation where we get some deal where each side could maybe save a little face. Maybe thats focused on trafrs or everything falls apart. The president has a tantrum pulse the negotiators which dont think for a second that couldnt happen. That could happen. And i think that would be more of what we had today on in the markets we would see the s p lower on those. I would think for the chinese saving face could mean pulling out of the talks walking from the table and not engaging. What should be very concerning for the markets is not only is doing nothing something but walking away is very bad and the which this administration rightly or wrongly but treating china much like we have treated outlaw at law nations. Apologies, russia. When you start to talk about restricting visa access. You start to talk about some of the restrictions more on the sanctions line with nothing to do with trade. You get into a treatment thats very different its very insulting if you are the chinese. Again im not speaking to is it warranted or not i think china policy right now is very popular in the country but when i look at markets and what the reliance on the fed and today back to was this qe or whatever it was . Powell went out of his way i thought he made it clear to say dont confuse Balance Sheet management with a larger scale asset purchase like we used to do that was the reason where the market clawed back almost all it lost gone to sell off and effectively closed on the lows i think less fed is certainly still a big issue for this market even if today he did say well leave our options open for the next three weeks. I still think the restrictions on the chinese and some of the other rhetoric going on, i think thats the bigger story here we all focus on powell we all do that for all the right reasons. We understand and basically according to liesman now were talking about Interest Rate cut again. Maybe before the end of the year that is almost a given sort of baked in i think still it comes down to the trade war thing. Thats why we sold off that commentary today was enough to get the market really pushing do the zoun downside process we have holding mel at about a 19 vix. Finished over 20 why . Because late in the day late in the day even though revisiting the low late in the day that was a harsh selloff. That was a nice big move to the downside that has stirring up concerns i think people have. I dont know i grow with you on one thing, guy when you said we are no better than we were 18 months ago in terms of negotiation maybe we are better because both economies are suffering. I think the chinese are suffering more than we are by a significant amount but i think were both suffering to some degree because we are starting to see weakness in some of the numbers we arent seeing the win we were seeing for a while and maintaining as well as we were we have more losses. I think there is pressure on both sides right now and that will got get us further along maybe. What did the market moel tell with us the accuracy. We have powell saying data depended. Fed future went up about five points five process Percentage Points as he was speaking he got up to chose to 807 likelihood of a rate cut in october so what do the markets tell us the markets told us that china trade will trump whatever the fed can do but the powell put is debt. That was my point. Its no longer if you ever thought it was its no longer. That was the point maebd i didnt make it clearly enough. But i think thats right when i say i understand what pete says, both sides are absolutely the hurting. But i think for President Trump he wants to save face. He is a very proud man everything is about winning. And president xi in china, the chinese are very proud people. Im hard pressed to belief they are coming to some resolution over the next thats my opinion. Well see how it plays out what does it tell us i have no idea why the dollar is at strong as it is making zero sense to me tp but gold topped oh out, the miners topped out in early september, all seem to consolidate president levels i think the trade back on and again we have this a while is the gold trade if there is a winner out of this its gdx and gold its disbelieve to guys point you hit on the dollar in but in terms of galled. Paper today. Unusual activity was there again today. We have seen it time and again it had taken a pullback down to where it is now but theyre buying and theyre buying time haven safe havens with are back in gold and dplar. The santa trade is sort of wak in terms of shall it dsh yeah the silver and gold. Santa and see santa trade. How did the song go, pete. Im not doing it right now. Silver and gold. It the burl ives trade. Burl ives. Back to you in the joshua tree years. Done for that the bottom line is we have a case where if you listen to the fed who is steep ening the curve talking about treasury purchases thats having people reaching for yield and pushing lower in terms terms of the deplacing frayed semis up 2. 6 . They are continuing on the front line of will they woept they, traded back down to the 50 this was as big a down move as we have seen in the Semi Conductors in weeks even though a lot of roll tilt in the space i kind of agree with the crew. Its difficult to see how we break out of some of the trades. And that continues to support i think whether its staples, utilities, whether also defensive kind of big box retailers which are trading at premiums that i think you have to be very careful about because if all the stuff is coming down as everybodys calling for it, the consumer is going to be in a very difficult place as soon as the end of the year. And i i mean that because we are going to see the fed was asked about payroll numbers. Talked about the downward revision to payrolls at 153 average the the past three months be careful of that. It feels similar but in different ways to q 4 last year. At the end of the day the Government Shutdown was the thing that took out the air from the consumer in the near term and the negative welt effect with the stock market going down process utilities and staples acted well until november, late november the s p already in adown turn last year but when the bottom fell out in december utilities and staplings with went down 10, 12 in line with the market again you see utilities trading at high valueses and staples at high valueses. You have to expect the s p takes a leg lower that those two groups will follow schutt. Thats exactly with what carter said yesterday. It i was in the market zone it was in the market zone that fancy segment. Got to check it out coming up the blue jeans indicate being lee va shares after results, what they say about the state of the consumer. Plus a allgaier to the netflix in the streaming pace. Not who you might expect but the kids love it times from times square in new york city. Much more after this much more after his much more after his that could allow hackers devices into your home. Ys and like all doors, theyre safer when locked. Thats why you need xfinity xfi. With the xfi gateway, devices connected to your homes wifi are protected. Which helps keep people outside from accessing your passwords, credit cards and cameras. And people inside from accidentally visiting sites that arent secure. And if someone trys well let you know. Xfi advanced security. If its connected, its protected. Call, click, or visit a store today. Well back to fast money time for the earnings alert appear lee sigh. Straight to seem iaaf modi at headquarters a volatile session for levi after hours. Here are the take aways from the earnings report. First it continuing to expand internationally. Revenue up 14 up 9 in asia. Process experiencing troubles in the americas where it saw a 3 decline in net revenue coup in part to weakness in the wholesale business lee sigh alsos says the stronger u. S. Dollar will negatively impact fullyear results now after going public in march and pricing at 17 a share levi stock has struggled off by by more than 22 from the april highs but got to upfwrad one from jp morgan and one from guggenheim talk bag unlocking more growth from the direct to consumer channel and expanding outside the u. S. The Conference Call kicked off just and well keep you updated on anything the management sasz for now the stock up 0. 5 in extended trade trouble in wholesale equaling trouble distributing through places Like Department stores, et cetera. Third parties. Right and theyre saying wholesale around 30 of the business and trending down as other parts of the business grow. It gets to a place where it may seem easy to say this now after the stock moved. Although it had a rally of a off the terrible run whie the premium when you look at the Apparel Companies even though koovg carving out a brand trade. Do you have a company like this trading north of 20. I think the market is making a correction on something that made no sense at that time. Fair. But i have it closer to 18 i understand what you are saying forward valuation in terms of forward multiple but then you look and say wait a second, operating margin 12. 2. Process inventories which are important are flat year over year sales growth 3. 8 . Youre saying to yourself, maybe its not as ridiculous a stock as you would think on the surface. Yorng you have to run out with bowing hands but i dont think this is nearly as negative a story as you might look a at on the surface its not as expensive as might might think. When are those stone washed. Guy wears the. We have gone through a number of. He wears the stipper. 501. If you look at macies cant get out of its way at 15 been like this for months at 10ier lows whatever the heck it is. It tells you we are overstored in the department store. But are with are they dwroeing investing in online . We talk to direct to consumer that stuff you lack at asia, asia china and europe great growth over there. Where are they growing and where are they losing . Losing in the biggest area almost to be expected because they are pulling away from all the the tj maxx and everybody else pulling away and trying to get the better margins if you focuses on where they grow, i find it impressive. Well. Up 14 in china, 9 in europe there are growth juries that are impressive and we know they are moving to the womens category its like lulu going to the mens category its something they need to expand a are doing it. By the way, it we just the if the folks at home want to sent gifts whiches from time to time, 501 joins, 3432. Thats interesting thats kind of stubby legs isnt it. 34, 32. He has a small torso. I think its a 30 up if i could get them they content. 3430. They wind chill the show, levi watches. Were not getting threw the door of the studio there are going to be boxes of boxes of 32 x 34. The teen haves spoken, the kids crowned a new king in the streaming wars we tell you who and later the trader says this stock could be prime to pop. We bring you the name when this fast money returns the amount of Student Loan Debt i have im embarrassed to even say i felt like i was going to spend my whole adult life paying this off thanks to sofi, i can see the light at the end of the tunnel as of 12pm today, i am debt free not owing anyone anything is the best feeling in the world, i cannot stop smiling about it car vending machines and buying a car 100 online. Vented now weve created a brand new way for you to sell your car. Whether its a year old or a few years old, we want to buy your car. 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