The trade fight drags on, theres going to be a recession by next summer. Right before the election. Both sides have dug in. All signs point to a lengthy fight. Thats that. Now the market. Following that huge selloff, we have a modest comeback this morning. Down 767 yesterday, maybe back up 100, 200 for the dow at the open this morning. The s p was down, what, 2. 5 yesterday. Its coming back this morning, less than 1 . The nasdaq which was down 3. 5 yesterday, back up 1 this morning. This is not a robust rebound so far. Modest, at best. Check Interest Rates. The yield on the tenyear treasury this morning coming in at 1. 75 . By the way, more rate cuts likely coming from the fed this year and rates in europe are still heading south. Hard to believe. Hardly any government over there pays any interest at all. As for the flight to safety, the price of gold this morning at 1478, up another couple of bucks. Oil, not calling that a flight to safety but a key indicator, 54 a barrel. So how you feeling . Nervous about your money . Stick with us. You will know exactly whats going on. Thats a promise. Varney company is about to begin. You only have an attack like this when you have a president who gives people permission to act on this hatred and this racism and this intolerance. It is shocking to me that he is so utterly selfaware and this is why from my perspective, he is not welcome here. He should not come here while we are in mourning. That would not be a welcome visit, given the environment that hes created over the past three, four years. He would not be welcome in my hometown. Stuart some democrats there adamant about the president not visiting the sites of the deadly shootings over the weekend, but ashley, hes going to dayton and el paso anyway. Ashley we believe so. No real confirmation from the white house, but el paso, texas mayor said yesterday indeed, he will be visiting el paso on wednesday. Still no word on whether the president , when he will visit or if he will visit dayton, ohio. It appears likely. Look, youve seen the reaction there. Veronica escobar, the democrat state lawmaker whose area includes el paso saying look, hes told the country we are people to be feared, people to be hated and from my perspective, he is not welcome here. This is a theme we are getting from some democrats, essentially blaming donald trump for the shooting. Tim ryan, ohio, as we saw there, we should quietly tell mr. Trump hes not welcome in the city because of his rhetoric on immigration. Bernie sanders jumping in, i say to President Trump please stop the racist antiimmigrant rhetoric, stop the hatred in this country which is creating the violence that we see. Stuart more on this later in the show, but i think trump derangement syndrome knows no bounds at this point. Ashley right. Stuart onward it goes. Lets get to the trade fight. The currency war with china. Stocks had their worst day of the year yesterday after the government in china set the yuan, their currency, at below a key level. The president s tweeting about it. Here is that late tweet. Massive amounts of money from china and other parts of the world pouring into the u. S. , for reasons of safety, investment and Interest Rates. Were in a very strong position. Companies are also coming to the u. S. In big numbers. A beautiful thing to watch. Market watcher Scott Shellady with us now. Obviously question. Does mr. Trump have the upper hand with china . Hes fighting a noble fight and thats great, but the problem is as my father would always tell me, dont pick a fight with someone thats got nothing to lose. Theres no state media thats going to be bashing xi jinping in china. Theres no state media that will be telling him what he needs to do and theres not going to be no derangement syndrome there. Weve got a problem where they are willing to do anything they can, whether that means sacrificing millions of people, too, to get something across. I think everybodys got the president s back here but he has to negotiate very acutely because this is something thats going to go on into the election, its not going to be a shortterm thing. Its going to be a bumpy ride Going Forward. I still hate the idea we are in a fight with somebody that doesnt care what they lose. Thats always going to be the overriding problem. Stuart hold on a second. Peter morici has joined us, economist. Same question to you. Does mr. Trump have the upper hand with china, in your opinion . No. China has enormous staying power. For the reasons outlined, theyre not going to budge until after the election. Whats more, they are getting a lot of help from people like biden and kamala harris. Basically, trump underreacted yesterday. Calling them a currency manipulator basically puts in process activities that will take more than a year to reach fruition. When china cut off agricultural imports completely yesterday, we should have responded with a 25 across the board tariff and told mr. Xi if he reacted incorrectly to that 25 , it could go higher. He needs to communicate to the American People that their behavior in places like hong kong and the northwestern provinces indicates how difficult it is to negotiate with essentially a dictator and that were not in for just a trade war, but rather, a complete reorientation of the u. S. Economy away from china. That this is likely to be the status quo at least until theres some change in the regimes attitude in china. Stuart gentlemen, im going to editorialize later on the program and take the opposite point of view. I think President Trump is in the very strong position and i think xi jinping is in a corner. Let me move on to the markets. Scott, you are the money guy here primarily, the trader. Is the worst over . No. Its not. This is something thats going to play on throughout the summer and into the fall and actually, maybe the next election. Weve got an issue on our hands where weve got a trade war and a currency war, and we are fighting somebody whos got nothing to lose. Thats going to be the problem here. While we see the dollar getting strength because we are the best economy in the world, we are going to be cutting rates because of that trade war and because of that currency war so were now in a spiral here that is going to be very difficult to get out of. We have to, again, be very very careful how we choose to use these rate cuts and how we are going to manage the economy Going Forward because this is here to stay. Stuart okay. Scott, this is for you. A president ial tweet just coming to us, here it is. As they have learned in the last two years, our Great American farmers know that china will not be able to hurt them and that their president has stuck with them and done what no other president will do and ill do it again next year if necessary. Scott, i think hes talking about paying farmers subsidies for lost business, right . 100 . We have a family farm, as you well know, and i will tell you, the farmers out there will tell you this. They would rather have open markets rather than a subsidy. Bottom line. So while the president does have some good will capital to spend there, that good will capital does run out. Stuart i want to talk to peter about Interest Rates. The yield on the tenyear treasury this morning, 1. 75 , still at that very very low level. The market is telling us there are more rate cuts to come. Now, i think the Silver Lining here is lower Mortgage Rates. Were at 3. 75 at the moment on the 30year fixed. Peter, is that Mortgage Rate going to head lower and if it does, i think it will, will it help the Housing Market . I think it could head lower but i dont know that it will help the Housing Market that much. Whats really holding back the Housing Market are millenials and genxers with the student debt cant buy in because they are servicing the student debt. The fact is the zoning requirements close in are so tough where the jobs are being created around the big cities that it makes building starter homes very expensive and not very profitable. So my feeling is there are structural problems in the Housing Market that are beyond the reach of the administration or the Federal Reserve. Stuart okay. Let me sum it up. Weve got a modest rebound for stocks. Interest rates holding pretty steady. And we disagree on who has the upper hand in the trade fight. I guess you do but thats life. Thats what makes it interesting. Stuart thats my show. Thank you very much indeed. Look at big tech. Boy, did they take it on the chin yesterday. This morning, again, modest rebound. But look at amazon. Amazon is up nearly 20 bucks. Alphabet is up eight. Modest rebound for big tech. Chip makers, please. They took it, again, they were way down yesterday. Back up this morning but it aint no full rebound. Most of them are up about 1 , maybe 2 for amd. The dow component disney, they report after the bell this afternoon. Ahead of that, they took a hit yesterday. Ahead of the report this afternoon, they are at 140, back there again with a gain of 2. 40. Quickly to the futures market. If youre just joining us, we are in for a modest rebound on wall street this morning. Then theres this. North korea launching two shortrange Ballistic Missiles overnight, thats the fourth weapons test in less than two weeks. How does that play into the china trade dispute . Were on the story. Some new york city businesses getting hurt by the increase in the minimum wage to 15 bucks an hour, cutting staff, eliminating shifts, raising prices. Others have closed down all together. It is the law of unintended consequences. And trump derangement syndrome. I think its at an alltime high after the shootings in el paso and dayton. I say it needs to stop. The trump 2020 campaign joins us next on that subject. Varney just getting started. Opportunity to experience thrilling performance. Now at the lexus golden opportunity sales event. Get 0. 9 apr for 60 months on all 2019 models. Experience amazing at your lexus dealer. Now you can, with shipsticks. Com no more lugging your clubs through the airport or risk having your clubs lost or damaged by the airlines. Sending your own clubs ahead with shipsticks. Com makes it fast easy to get to your golf destination. With just a few clicks or a phone call, well pick up and deliver your clubs ontime, guaranteed, for as low as 39. 99. Shipsticks. Com saves you time and money. Make it simple. Make it ship sticks. Were on the move. Hey rick, all good . Oh yeah, were good. Were good. Terminix. Defenders of home. Stuart north korea launches its fourth test missile in less than two weeks, so susan, does that affect the china trade dispute . Susan very good question, because as we know at the g20 summit, we had president xi and President Trump meeting facetoface, and President Trump headed over to north korea. As you know, china holds the keys to the north Korean Nuclear talks and i would say also the north korean economy as well. So this is the fourth in 13 days that we have seen shortrange Ballistic Missile test. Its important to note it is short range, because obviously, if its long range, that goes against a lot of the nuclear pact or this moratorium we have seen so far. Stuart i cant help but think beijing calls up pyongyang and says hey, fire off a couple missiles, please, because we have a sticky spot with trump and trade. Ashley we also have hong kong. We need to give them something to worry about. Stuart lets poke the bear a little bit. Susan i think timing is probably not controlled by beijing, but again stuart no . Susan no, i dont think so. You think theyre trying to launch Ballistic Missiles to test the u. S. china trade talks . Stuart why not . Susan is that also to flex the muscle saying beijing is in charge here and we have other pawns to throw into this negotiation . Stuart i would assume beijing is in control of north korea. They are a client state. I would assume the timing is perfect to interfere with the china trade dispute. Susan right. Stuart it seems to me. Im speculating. Susan fourth in 13 days, i would be very suspicious to see whether or not this timing actually is included in the trade talks. Stuart all right. Fair and balanced. Susan im just saying. Stuart President Trump now facing real backlash from the left over his plan to visit the sites of the deadly shootings, el paso and dayton. Trump 2020 Communications Director is with us. The democrats are basically blaming the president for the shootings. How do you counter that . Well, stuart, thank you very much for having me on here. What the democrats default position is no matter what the issue is to blame President Trump, whatever the issue is, its going to be President Trumps fault. In the case of these horrible tragic shootings in el paso and dayton, the democrats demanded that the president come out and denounce the shootings. He did. They demanded that he come out and denounce bigotry, racism and White Supremacy, he did and has done so on many, many occasions. You take, for example, cory booker, who was on tv yesterday, he said look, the president has to come out and condemn White Supremacy and the host said to him well, this is what the president said today, is that good enough for you, and cory booker said no. So we went through and we found in just a few minutes, found 16 different instances where the president going back to 2016 forcefully condemned racism, bigotry and specifically White Supremacy. 16 different times. And the democrats still are running around under this pretense that the president hasnt done anything about it, when in fact thats not the case. Trump derangement syndrome is alive and well, no question of that. Stuart i can just imagine when the president , if the president does indeed go to el paso tomorrow, the media will focus entirely on the reaction of local people who may, some of them, oppose him. Thats going to be the money shot for the media. Look, tim, ive got to look, in my opinion, trump derangement syndrome has reached an alltime high. I think its got to stop and i want to know how you think you can make it stop. Well, we just have to keep forcefully expressing what the president s record is and trying to counteract people when they completely misrepresent what it is that he has said. The president yesterday delivered a message, strong message of unity. He said that america will win in this situation following the shootings because america always does. It was a positive message, it was uplifting, he very reverently talked about the victims of these shootings and their families and the next thing you know, the democrats are out fundraising off of this, sending out emails trying to raise money on the backs of the people who were killed in these terrible situations. If the president does in fact go to texas and ohio, we do expect that the media will run to the political opponents and we saw joe biden on tv yesterday, for example, trying to lay these things right at the feet of President Trump. Well, by that very logic, then joe biden should be responsible for the dozens of Mass Shootings that occurred during the obama biden administration. That sort of logic doesnt work. There are a lot of factors that go into situations like this that cause someone to go into a crowded place and murder a bunch of their fellow citizens, a lot of it has to do with Mental Health. The president called for addressing Mental Health issues yesterday. He also called for red flag laws to make sure that people who show warning signs of this type of behavior shouldnt get access to firearms. Called on social Media Companies because we know people who are out there on social media giving real warning signs to the fact they may be a potential danger, those are real concrete steps that the president is taking but you know, its never going to be good enough because with the democrats, its always about politics and its always President Trumps fault. Just fill in the issue here. Doesnt matter what the facts are. In their mind it will always be the president s fault. Stuart you will always be fighting with the media because they will always hate him. Youve got a tough job. Thanks for joining us. We appreciate it. Thank you, stuart. Stuart back to your money. This is the day after the big selloff yesterday. Modest rebound. Look at that, the dow is up about 260. Nice gain for the nasdaq. It was down 3. 5 yesterday. Back up maybe 100 points this morning. Thats 1. 3 . Chaos at a democratic socialist convention. The use of gendered language causing the event to grind to a halt. Just wait until you hear this. Youll be laughing. What do you look for when you trade . I want free access to research. Yep, Td Ameritrades got that. Free access to every platform. Yeah, that too. I dont want any trade minimums. Yeah, i totally agree, they dont have any of those. I want to know what im paying upfront. Yes, absolutely. Do you just say yes to everything . Hm. Well i say no to kale. Mm. Yeah, they say if you blanch it its better, but that seems like a lot of work. No hidden fees. No platform fees. No trade minimums. And yes, its all at one low price. Td ameritrade. On a scale of one to five . One to five . Its more like five million. Theres everything from happy to extremely happy. Theres also angry. Im really angry clive actually, really angry. Thank you. But what if your business could understand what your customers are feeling. And then do something about it. Turn problems into opportunities. Thanks drone. Customers into fanatics change the whole experience. Alright who wants to go again . I do i do i have a really good feeling about this. At comcast, we didnt build the nations largest gigspeed network just to make businesses run faster. We built it to help them go beyond. Because beyond risk. Welco