Apple. Be that as it may, the s p is falling for the fifth straight day. Again it is on track for its biggest loss since going back to december. The 10year note, which is a good barometer how people are feeling, if you are nervous, park your money in notes and bonds, people are doing that, these are the lowest yields in the better part of three years. Were keeping an eye on that, keeping an eye on other things were waiting for. President might comment on that or all the above. He wants to up the trade ante. The latest besides affecting tariffs virtually on everything we get with china, he is talking increasingly now it starts at 10 with the remaining goods. It could go up still further. As stuart was pointing out. A lot of other goods and services were talking aabout could easily ratchet and move in different directions. Well keep an eye on that. Also keep an eye on what has been happening on the Precious Metals front. Gold, for example, getting a lot of buying interest, a little less settled but there had been a runup here. Again the big concern seems to be that the Federal Reserve now is going to have to get off its one an done notion which in the eye of the beholder could go variety of ways, maybe start cutting rates more aggressive been than planned because of the trade quagmire. Edward lawrence at the white house, she might have more what the chinese are thinking in response, what the u. S. Is thinking in response to that possible response. Edward . Reporter the response to the response to the response. The chinese are saying they will emly meant countier measures if trade tariffs go into effect on september 1st. The uncertainty around china trade certainly jumped. White house Economic Advisor larry kudlow says President Donald Trump simply wasnt happy with the progress of talks that happened this week. Although he says it is china will have the problems if this trade conflict continues. There also a lot of shift in production and supply chains out of china. It is doubtful they will get those markets back. So i think the impact falls very heavily on china. And our Consumer Sector remains strong. Reporter today a spokesperson for the Chinese Foreign ministry saying china will not accept an inch on major principles and will not accept extreme pressure. That is in response to President Trump announcing 10 tariffs on about Everything Else that china imports into the United States starting on september 1st. Our chinese trade sources say china will not add back in any of the concessions the u. S. Says they deleted. We had a deal in place. The problem was at the last minute they came back and tried to renegotiate that deal. We understand that but the president said he is not going to sign a bad deal. Reporter china also digging in here, facetoface talks are scheduled for september again. Well have to see if that happens. If the administration sees job numbers just like the numbers that came in today, they do believe that we can hold out for a better deal on this. Jobs, 164,000 jobs created in july alone. That makes the average number of jobs per month this year 165,000. Average hourly wages rising 3. 2 . Unemployment rate at 3. 7 . This is all very good showing the status quo is continuing. It also indicates that at the economic expansion seems like it is contending. Neil . Neil that is if the trade war doesnt continue. So well watch that very, very closely. Edward lawrence, thank you very much. As i said stocks are extending their losses from yesterday. We should posit anything sensitive to trade multinationals that depend on trade with china surprisingly not get caught up in the downdraft. There is a lot of to digest. There could be overreaction. Federal reserve is more inclined to easing Interest Rates, to buffett all of this. Way too early to start adding conjecture to all of this. What we know now the dow is looking at one of its worst weeks of the year. For the s p 500 undoubtedly the worst week of the year. Lets get the read from Deirdre Bolton at new york stock exchange. Hey, neil. A warning that President Trump impose, that remaining impose tariffs will limit consumer purchases, limit hiring. National Retail Federation are one group making voice heard. Walmart, amazon, those are two heavyweight members of that group basically saying this will hurt u. S. Consumers. It will hurt our companies. If you look at the retail index, the s p 500 index, it fell more than 2 yesterday in reaction to the president s tweet. Today Retail Stocks are down again. Trade retail association. Counts them as members. Clothing, toys, home goods, electronics. I went through the list, pages and pages long, neil. Roller skates, writ watches, so many items that people buy every day. Beijing as we know threatening countermeasures if the u. S. Does go through as planned on september first. Saying consumers take a hit more than chinese manufacturers. They say chinese manufacturers produce as much as 42 of the clothing, 69 of the footwear that all of us buy without thinking twice about it. Walmart in may is trying to insulate customers. Theyre trying to switch up the supply chain and basically find new manufacturers. Larger context, worth noting, retail, neil still outperforming the s p 500. One of the groups falling, biggest weight on the market, that is technology if you look at all big tech names they are lower. Facebook, amazon, netflix, google, apple, all lower, particular weakness in chipmakers. We know that Chinas Huawei named 30 u. S. Companies as socalled core component suppliers. Chip index down 2 . Nasdaq on track to close lower for the fifth straight day. Longest losing streak definitely since march. Neil, back to you. Neil thorough as always. Thank you very much, deirdre. Retail, multiples of this on if this starts september 1 we mentioned walmart. Touched on target. Amazon is retail play but thatbe affected by this, but there is separate category hurting retailers those already announced store closings this year, could extend that, theyre particularly vulnerable to this, keep eye on dressbarn, payless shoe, family dollar, gymboree under intest pressure because they have been closing store. Nothing have to do with the china situation but their own vulnerabilities. There are primo retailers, secondary retailers, those closing a lot of stores already retailers. That latter group well keep an eye on here. They could be vulnerable what is going on. All right, barrons jack hough, gordon chang, who saw a lot of troubles with china. What now, gordon. Well have a period of prolonged friction. That interim deal, President Trump, xi xinping, chinese ruler negotiated at g20 that was really favorable to china. China basically gave up nothing. They were going to buy ag products anyway. They got a critical concession on huawei. The thing that is important, china couldnt even honor that deal. That suggests to me something is really wrong in beijing. Neil you say really wrong, someone there changed their mind . Someone there changed their mind or the political system is so frozen they cannot actually do whats good for them. Because they had this sweetheart deal trump gave them. Clearly they cant go forward on it. I think there will be continued friction largely because we dont have a counterparty on the other side we can deal with. Neil do you think, jack, our markets are prepared for this not being resolved at all . I dont think what is happening in the market right now, the market passing judgment on the worthiness of this cause for the u. S. It is just a matter of expectations. People thought that we were in talks, there was a truce a trade truce here. That would carry us through the election. Thats wrong. Now there might be a cycle of retaliation. People are worried about it. What weve seen announced recently, it could cause 1 of s p 500 earnings over the next year. Doesnt sound like a big deal. But earnings are not really growing right now so it feels like a lot. We talk about the fed put, things get bad, fed cuts rates, it will make things better. Im not so sure we have a fed put this morning. I think we might have a trump put. The white house is watching the context of the economy, stock market. If the stock market, economy stay strong in relation to the trade talks i think were okay. If we see a lot of weakening here, you will folks motivated to find a deal. Neil you say put. Does that mean you doubt the Federal Reserve will have additional rate cuts or doubt with they will have any effect regardless . They will have additional rate cuts because of 13 trillion, negative yields in europe. Sending too much capital to our treasurys. It is making the dollar too strong. Neil that will supersede china alone . Automatically you got a Big Stock Market rally when you start cutting rates. The past two rate cutting cycles. You didnt get that first year. You had continuing decline. With this one it is following that pattern. Neil gordon the argument between you and i, how times we mentioned it, that china needs to steal a lot more than we do. China is obviously rolling the dice if we interpret delays in this, figure we can wait him out . Im sure theyre thinking that. It is more than just waiting it out. It may well mean that xi xinping cant actually force other people in the chinese constituency to buy on to a deal. That is what happened at the end of april, when he made across the board concessions to u. S. Trade negotiators. When the agreement came back from beijing that was supposed to incorporate all the changes, none were there. Xi xinping could not force state enterprises to agree to the deal. Neil by the way their argument has been you misinterpreted us, we didnt think these were preagreed to conditions. Doesnt matter, didnt happen. Chinese will say anything, neil. Neil okay. Actually i do believe that across the, you know, u. S. Universe, everyone thought negotiations produced those concessions, it is not just trump, it was lighthizer. Even mnuchin, you can see he was visably crest fallen, he knew he chinese were not honoring the agreements they preliminarily made. There are real problems over there. China has an economy not doing very well. You have got the problems in hong kong, which eventually chinese leaders may think are existential for the communist party. Right now there is a lot going on in beijing. We dont know exactly what is happening. But it is not a good story. Neil chinese already promised to retaliate in response, ask about what you think they would do . More tariffs . China has the advantage of being able to make topdown decisions on what people buy there. They can change their mind in a hurry about their taste for bigname, Popular American goods. Neil they have done that with apple, favoring huawei devices. Do you think they would for example, Nuclear Option, stop buying our debt or selling our debt . They would create a large as a problem for themselves if they do that these are strange times. The context, manufacturing, our economy right now, it is two stories. Manufacturing is quite weak in the u. S. Right now. This really doesnt help. But the consumer right here, retail sales, probably increased 3 1 2 this year in the u. S. Youre going to see a lot of store closings who are than you see last year. You will see retail bankruptcies. That is not about a weak consumer. That is about too many stores for too many years. There will be a reckoning. Were writing about that in barrons magazine, the coming retail reckoning. That is not about a weak retail consumer. Neil you you were shaking your head about the sell debt. They have to sell dollars to support the renminbi. They have sold 800, 900 million since september of 2014. All the things china could retaliate going u. S. Companies those things hurt beijing more than they hurt us because china needs manufacturing, it needs investment. If they go after u. S. Companies even harder than they have in the past, it means that theyre scaring off the japanese, south koreans and europeans. Beijing is lower level officials are apoplectic when they hear xi xinping talk about going after u. S. Companies. Neil a lot of those companies, you talk about south korean companies, theyre also moving out of that neck of the woods as a precautionary measure. That wont change, deal or no deal. U. S. Consumer, all these things will hit an cause price increases because they are consumer goods because of tariffs. Nine to 12 months, they will be made elsewhere, this issue goes away in a relatively short period of time. Neil jack overreaction today, or just about what you think . Markets are still up big this year. Earnings are not really growing. Stocks are up huge this year, in the context how far we have come, this move is no big deal. I think u. S. Stocks at 18 times earnings, even bonds two or 3 with rates going lower, that might be the best deal you get for some time. Neil fair enough. We will still play scary music and red arrows. Dont get calm and hunkydory about this. Interest rates lowest in three plus years. Well have more after this. All right brad, once again i have revolutionized the songwriting process. Oh, here we go. I know i cant play an instrument, but this. This is my forte. Obviously, for auto insurance, weve got the wheel route. Obviously. Retirement, were going with a longterm play. Makes sense. Pet insurance, wait, let me guess. Flea flicker. Yes howd you know . Studying my playbook . Yeah, actually. Neil welcome back, everybody, there is one sector adding to the broadbased selloff, that would be the utilities sector, a flight to quality, a haven, the old line a place for widows and orphans, it is safe, not sexy certainly not exciting. That is only one of the 11 s p 500 sectors, that is not slipsliding away. So there is that. Dow jones is down about 169 points. Lets get a read on all of this politically because this could have impact. Kamala harris was among the first of the president ial candidate to put to and two together to say this drags on. This will impact the economy. Most democrats are leery of raising the subject in a good economy, to do anything about raising it as an issue in the campaign. If this is potentially an issue, they probably will exploit it. Glen hall joins us right now, Dow Jones Newswires chief editor. Glenn, if you think about it, the first i can remember a president ial candidate cite what is happening on the trade front, the need for the Federal Reserve to lower rates as, would be an opening salvo, right, on the economy, what do you think . Its a bit of a gamble, taking a shot if we see further erosion in the stock market, confidence reflected in the stock market, you see that trickle down into the prices that consumers will be paying for goods, then you might be able to mcthat case, that this president has made bad policy for american workers. I think thats the strategy there but, neil, it is a gamble because so far we have one of the longest, we have the longest period of job creation on record. There have been manufacturing jobs created during that part. President President Trump won largely in 2016, that i will help workers and bring back these jobs. Neil manufacturing job growth has stalled a little bit. That could change. But i have a feeling that that is what democrats want to seize on, those gains, particularly when they visit the industrial states like michigan, where they had the recent debate, that will resonate. Will it . Again its a gamble theyre making. President trump actually made inroads in some of those states. Neil thats right. Including winning michigan. Looking good in pennsylvania during that period. So when you look at where the Union Workers are strongest, it is also in those same states, michigan, ohio, pennsylvania, illinois, and of course new york and california. Neil you know, leaving just Union Workers, workers in general out of this to talk about shoppers, the fact that with this latest tranche of tariffs on 300 million worth of goods, those are more consumer related, those things you would see at walmart or target. No mystery why those issues are taking it on the chin today. In other words unlike some other tariffs that have been in effect for a while. They have been in industrial base. A lot of companies, contractors absorbed that, there is delay getting them to the United States as well. This group, not so much. Is that going to change the equation here . I think were already seeing the equation change a little bit. When you look at trade numbers came out today, you see over the past six months, china dropped to number three in terms of our chief trading partners, canada, mexico filled the gap and risen. Everyone needs to bear in mind, in terms of political consequences here china is not the only supplier to the u. S. Consumer. Neil glenn, your thoughts on Federal Reserve role in all of this. They kind ever intimated even though they didnt out right say it was kind of one and done this week. Maybe because of escalating trade tensions, maybe the president will force their hand we could see additional rate cuts, what do you think . I think chairman powell was walking a fine line and having a hard time to do it, the point he made this was preemptive move, largely inspired by the challenges with International Trade were facing right now, so then if you see further moves in that direction where this drags on a lot longer, that may force his hand. He wants to signal this is oneoff there should be expectation there will be more. Neil he has been quiet as a church mouse since. Well see it. Always good having you on, glenn hall, voice of calm and reason when we need it. To put it in perspective, flip side of good news, Interest Rates going down, down, down, looking to buy a home, refinance the one youre already in, looking great. The only problem is, no one is taking advantage of it . What is the deal with that . Let me ask you something. Can the past help you write the future . Can you feel calm in the eye of a storm . Can you do more with less . Can you raise the bar while reducing your footprint . 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