Amelia . Jobs may have been busting out all over in june but is the a. I. Takeover closer than anyone thought . A ceo on how his companys tech is leading the revolution that could see humans and Digital Workers at a 50 50 ratio in just five years. Farm country on ice. As if the harsh wind of the u. S. china tariff fight wasnt enough, the heartland now grappling with a new blast of trade. We talk to a ceo. And elon musk makes good on his promise of record deliveries in 2q. Dan ives warning of a albatross hanging around the behemoths neck. The hazards he still sees in teslas roads, up ahead. Tesla and major indices stuck in the red but the nasdaq moments ago revving its engine tos to g out of negative territory. This is usually what we see toward the last 15 minutes of the day. We are less than an hour to the closing bell. Lets start the countdown. Kristina breaking news. Powerful aftershocks still shaking in Southern California following yesterdays massive 6. 4 magnitude earthquake. Its the strongest earthquake in two decades. Earlier this morning a 5. 4 magnitude aftershock hit the northeast of ridgecrest, california, 150 miles north of los angeles. This was the strongest of more than 200 aftershocks that measured at least 2. 5 magnitude. The quakes may not be over yet. The u. S. Geological survey says theres a 20 chance of survey of magnitude 6. 0 or higher occurring in the next week or so with an 80 chance of a magnitude 5. 0 or higher quake hitting the state. Everybody in california, our thoughts and prayers are with you. Weve got to turn to the markets. The major averages making a comeback after retreating from record levels ahead of the july 4th holiday as investors fear the strong job report may be the end of rate cut hopes. The major averages are well off their session lows. The dow had been down, actually been down 232 points earlier today. The dow, though, the s p 500 and nasdaq are all poised, look at that, poised to close higher for the week. Lets talk about some safe havens. Youve got gold, sliding down about 1. 5 today following the solid jobs report. For the week, the metal is set to see a decline of about 1 , its biggest drop since midapril. And chip stocks are taking a hit today. Thats after samsung warned its Second Quarter profit could be cut in half from a year ago due to sluggish demand for its memory chip thanks to the ongoing trade war between the United States and china. We are going to be looking at some of the biggest decliners, intel, micron, nvidia, Applied Materials and Marvell Technology group. We got the initial fed funds futures, they were possibly pricing in a half point cut at the next fomc meeting later this month. Investors now are wondering if it will happen at all. Is a rate cut off the table for the end of july . Youve got National EconomicCouncil Director larry kudlow that said this morning he still expects a fed rate cut in the near future even as Economic Data remains strong. I think the markets have been predicting that the fed will probably take back its december rate hike which was probably overbaked. Kristina i want to bring in our traders on the floor right now, along with craig hodges. Hodges Fund Portfolio manager. Lets start with you, craig. Where do you stand . Do you see this rate cut thats coming and being already priced into the market, is it 100 . What are your thoughts . With the good jobs number, they obviously its not as automatic as it once looked. I think everyones still looking for that 25 rate cut, 25 basis points rate cut. They pretty much already told us that. So they cant really tell us that and not do it. I think thats coming. But after that, i think its kind of 50 50 as you go. I love the action of the market today, the fact the market sold off like you said, 230 points and here we are fighting to almost get back into positive territory. Thats a good sign from my standpoint. Kristina i want to bring in phil flynn at the cme. You just saw some optimism. However, craig was talking about maybe the next, forget july, we are talking about september going forward. Are you still positive . Do you think that the fed will continue to cut rates . Do you think its going to be 25 basis points . I think they are. You know what, if you read the feds statement, what do they tell you . It wasnt so much about u. S. Growth but it was uncertainty about whats going to be happening with the Global Economy, right, the trade war stuff, uncertainty, concerns about whats happening with the slowdown in manufacturing across the globe. And its amazing how the markets react. They dont know if they want good news or bad news, right . Last week its doom and gloom, got to sell the stocks, Global Economy selling. Now its like oh, my gosh, we got a great number, we got to sell the stocks because oh, my gosh, the fed might not cut rates. Listen, the federal reserve, Larry Kudlows right. Theyve got to take away that Interest Rate increase. Theyre not going to do it all at once but they are going to take it back so that means at least two more cuts of a quarter percent. Thats what i thinks going to happen. Kristina chris robinson, also at the cme, chris, do you feel like the bond market may be telling us a different story . We are seeing the yield right now a little bit higher today, and thats primarily due to the jobs report but overall, is it a different picture and should we be focusing on that picture instead . Well, i think you have to watch the tenyear. Thats the pivot point, that 2 yield. A couple days ago we were down at 1. 95, people were talking about possibly the tenyear going to 1. 5. The bond market was kind of doing the heavy lifting for the fed so i think a lot of people believe they are going to take back that hike and after that, the feds got to probably want to hold on to keep their powder dry because if the worldwide slowdown outside the United States, if that ever caught up here, they are going to need some ammunition to do something. The risk is they cut, they cut, and then they really have to cut and then weve got a problem, and there is a recession, whoever is going to be the next president is going to be pinning that recession on the fed. I think thats what the feds worried about. Kristina tim, want to bring in tim anderson at the New York Stock Exchange. You just had literally the comment if, if the global slowdown hits the United States. Right now, the United States is an anomaly, when you compare it to the rest of the globe. Do you not think that potentially could start to slow down our economy here given the number of multi nationals . I think our economy has slowed down. We printed 3. 2 , 3. 1 in the First Quarter this year. We are probably not going to print that in the Second Quarter. Its going to be closer to 2 , 2. 25 . So theres no doubt that the economy, particularly the manufacturing economy, has slowed. But i agree with pretty much everyone else, its baked in the cake that theyre going to cut 25 basis points in july. Then there will be a tremendous amount of macro data out between now and september which would be their next decision point, as well as a pretty significant Second Quarter earnings reporting period that will start in about a week and a half. Kristina phil, you just said it was baked in the cake but isnt that a little bit too optimistic, given the unclear standing right now . You have an economy, the jobs report still keeps on coming out strong, we saw that reflected today, essentially the market has priced in all these cuts but could the market be wrong and should the fed have cornered itself right now . I think the fed has cornered itself. You are absolutely right. And could they be wrong. I think theyre wrong about the u. S. Economy because i think we are seeing more and more evidence that its very strong. Yes, we are slowing down a little bit. I think a lot of that slowdown had to come because of uncertainty, whats going to happen with the trade war, businesses are pulling back a little bit. But they are going to be sorry that they did because what we are seeing in the underlying economy is very strong. So they are going to have to play a little bit of catchup and i think the fed will have to play catchup as well. Now, the rest of the world, are they going to be able to turn that around and piggyback off the u. S. Economy . The only way i see that happening is if we do get a resolution to the u. S. china trade deal. If that does, everybodys economy is going to start looking good. Right now, the u. S. Is the only place to be and the fed is forced into cutting at least twice. Kristina craig, i want to bring you back in and discuss certain sectors. From your note, i think you were talking about valuations are relatively reasonable but you said defensive stocks are expensive, cyclicals are cheap. Can you explain . Yeah. As you have seen, a lot of these utilities and flights to safety stocks are trading at 52week highs and doing extremely well. Trading at very very high pe multiples, very high, some of them growing 2 , 3 , trading 25 times earnings. Theres parts of the economy, like commercial metals that is growing, that trades around six times earnings or a lot of things like that. So its a have and have not stock market. So there are areas of the cyclical economy, especially we do have a good economy, its kind of ironic when you hear the president say weve got this great economy, the greatest of all time and we need a rate cut. Its a little bit humorous. Kristina yeah, exactly. The bottom line is weve got a good economy. Second quarter earnings may be a little soft so there probably will be some selloffs and some opportunities but if that was the case, i would be buying Good Companies that go on sale. Kristina i have just about 30 seconds left. Chris, we are talking about certain sectors. Our viewers are watching right now. What should they be doing ahead of the earnings season thats coming . Well, we are at record highs, right . Remember, if you were chewing your fingernails off back at christmastime, we are 25 higher than what we were. So the time to plan for the rain is when the clouds are clear. So if youre worried about that rebalance, make sure youve got your money where it needs to be and nobody knows where we will be a year from now, thats for sure. Long term trends are always higher if you look at the long term trends. But if youre not ready for some volatility, i think you need to maybe pull some cash aside. Kristina thank you, tim, phil, chris and craig. Thanks, guys. Have a good weekend. Despite President Trump warning that iran needs to be careful, the rogue nation says its taking the next step. Amid the tightening u. S. Sanctions, tehran is threatening to increase its enrichment of uranium to any amount they want starting this sunday. The threat comes as iran also warns of retaliation against britain after its oil tanker was seized on its way to syria. Meanwhile, you have President Trump saying china wants a trade deal. The talks are officially back on next week, as the two trade delegations will be talking via phone first to set up when the next inperson meeting will happen. China is now saying that the two will not reach a trade deal, they will not reach a trade deal, unless President Trump rescinds the tariffs hes placed on the country in the first place. Weve got Edward Lawrence live at the white house with the details. Edward . Reporter President Donald Trump again today is what you are saying, sthad the chinese would like to have a deal. We havent quite seen the chinese mirror that language there. However, the president saying the talks are back on. My sources are telling me that there will be phone conversations all next week to try and set up when those facetoface meetings will happen. Also, where they will happen. I know theyre working on coming up with a date for socalled facetoface meetings. That will happen. I dont know if thats this coming week. I think the phone calls are this week. The facetoface may not be for another week. But i dont want to get ahead of that curve. Its under negotiation, which is a good thing. Reporter the chinese say they will not make a trade deal unless the United States pulls back all of the tariffs they imposed on all chinese imports. The u. S. Says china must protect intellectual property and add back all the concessions they had made that the u. S. Says they had deleted out of the last draft of the deal. President donald trump optimistic but also realistic. We had a deal and they broke it. They broke the deal. They shouldnt have broken it. I think if they had it to do again, they wouldnt, because right now, we put very big tariffs on and we have a lot more to put on if we want, but china broke a deal. We are talking to them. Well see what happens. Reporter trade sources say there has been one phone call at least between u. S. Trade representative robert lighthizer, treasury secretary steven thmnuchin and chinese vi premier liu he to try to set up negotiations for when the facetoface will happen. Again, no formal date for those talks or location. Kristina thank you, edward. Nike now in the top three on the dow 30 heat map, as you see on your screen right now, as we head into the close. Shares are weathering the storm this week despite fallout over nikes decision to pull its fourth of july sneakers depicting the betsy ross american flag, thats after spokesperson Colin Kaepernick expressed concern over the flags connection to the era of slavery. Outrage over the decision which some deemed unpatriotic, leading arizonas governor to withdraw a Million Dollar grant that was to be given to the Athletic Apparel giant for a factory to be built in the state. You got California Governor Gavin Newsom jumping in the fray to thank nike for doing the right thing and reminding the sneaker titan that his state is open for business. Shares are currently up about 50 cents and up over 3 for the week. We also have the digital revolution taking over, ai creeping into more corners of your personal life and it doesnt stop there. Up next, the staggering prediction one ceo is making on just how many jobs will be filled by Digital Workers in just five years and why it may not all be bad news for the American Labor force. Countdown is coming right back. Kristina most of us have heard of siri and alexa but what about amelia . As technology continues to change the way we live our daily lives, our next guest says new ai, including his company, is set to revolutionize the way we work and transform the work force to half human, half bot, and im thinking literally right now, by 2025. We are joined by the founder. Thank you for joining us. Lets talk about that statistic. You really see a labor force, say in a building, a manufacturing plant, where literally the same amount of humans as robots . Well, World Economic forum just had a report about that, theres 133 million new jobs that are going to get created, and we see about 78 million getting displaced. Where are we going to end up . By 2022. Today we are 79 humans, 21 automation. By 2025, guess whos going to be dominating. 52 , according to World Economic forum is going to be done by automated agents, algorithmic agents as opposed to humans. The vast consensus to your question, it is a known thing that algorithmics will be responsible for doing the majority of work that is being done by humans today. Kristina which sectors do you think this will hit hard . We often talk about manufacturing and maybe the future of driving and truckers, et cetera. What do you see . This is going to be agnostic to sectors. This is going to be a revolution that would hit just about everyone. What is happening, what we are seeing in the marketplace is there is a digital darwin curve that is emerging and i think companies and sectors are selfselecting where they wish to be on this darwin curve. If you happen to be one of the sectors that is leading is banking, finance and insurance. You find that they are starting to say you are deciding whether you want to be an experimentalist with ai and you just want to be informed this is coming or you decide you are barclays and you want to be a fast follower and you say im going to take a certain sign on my Mortgage Business and make it go completely digital and 62 of my origination will be done by digital agent, or you decide you are going to be a market leader. You are the largest jpmc, 1. 3 billion credit Card Transactions will get done entirely digitally. Bbba, telephonetica saying i will have banking related questions coming in be handled by the lady you mentioned, amelia. Kristina lets go to that. It would be really funny if i were a man and i were to say siri, alexa, now amelia, i cant keep track of all these names but can you tell me what role amelia will have in this digital revolution we are talking about . Today, you want to hire somebody, i just saw a moment ago when i was following your program, there was an ad for Career Builder came on. So you want to hire somebody, you go to Career Builder, you go to monster or linkedin or something to be able to hire a person. Tomorrow, as in the next 24 months before that, you will go the a store where you will hire a digital worker. Kristina we are seeing them slowly. How did it happen . I think the last decade you saw was replacement of labor with cheaper labor, at the risk of being too direct. This decade, onward, its going to be replacing labor with digital labor. You are going to go ahead to the store and you are going to hire your Digital Claims processing agent, your insurance