The nasdaq up better than 1 . Thats a rally. By the way, the yield curve is not inverted. Treasury rates are now firmly above their lows of the last two weeks. Got a question for you. Why would apple, with over 200 billion in cash, borrow even more money . They are jumping on the cheap money band wagon, issuing bonds along with cocacola, disney, deere and a host of other Blue Chip Companies. They are making hay while cheap money flows. And they will pull in money from overseas, too. Over here, corporations pay interest. Over there, not so much. In a moment, you are going to see the extent of the devastation in the bahamas and dorians track. Its strengthening and heading for the carolinas. Varney company about to begin. Stuart we start with the hurricane. It is now a cat 3 storm as it makes its way up the east coast and takes aim at the carolinas. Meanwhile, in the bahamas, more images emerging of absolute devastation. At least 20 are dead. That number is expected to rise. Jeff flock is in charleston, South Carolina, in the thick of things. Jeff, whats it like now . Reporter well, i guess it could be worse, stuart. Thats your main headline here as we drive you through the streets of charleston. Maybe if martin looks out the window, you can see theres no catastrophic damage here by any stretch, but clearly, you know, they had a hurricane through here. Look at the houses on the right. Can you see that on the right . Can you get out that window and see . This is what they prepared for with big sandbags and all sorts of things, and now what were getting is mainly huge rains. The streets of charleston, pretty well flooded. I dont know if we get up to this next one, i think you can probably see it. Nobody coming. We will go through that stop sign. Heres a fellow out on the street. They are trying to clear the drains here because if you dont get the drains clear, you dont get the water free to flow out and maybe you saw that guy there. If i open my door, maybe you see ev even, you able to come back over here . Not really . Okay. Well, there you go, streets full of water and you know, were not done with this yet. We got a ways to go. We will be with you all morning. Stuart yes, you will. Thanks, jeff. We will check in with you again on this program today. All right. Thats the hurricane. Now money. Green arrows for the market at the opening bell. China trade talks scheduled for next month. Thats why were going up. Market watcher Gary Kaltbaum is with us. Look, this is a headlinedriven market and you say theres another good headline coming from the fed. Make your case. James bullard was out yesterday morning saying we need a half point cut. Hes the mouthpiece of jay powell. Hes the one who came out in late december of 2018 and in june before the statement. I think a change is coming. Markets for ten years loved easy money. You combine it with whats happening with china, another announcement of another meeting, maybe were getting close or maybe not. I think the combination without a doubt helping markets right here. Now were in the middle of a trading range going back a year to two years depending on which index, and hopefully we can break out of it. Stuart stay there, gary. More for you in a moment. I want to get to brexit, because Vice President pence is in london, meeting with Prime MinisterBoris Johnson this morning. Ashley, why do we care . Ashley we dont. To be honest with you, this is barely even a blip. Let me just back up on this. Because mike pence is going to go there with a message from donald trump saying we support you, boris, in your efforts to get the heck out of the european union. The problem being is the brits just cant do it right now and even more embarrassing for boris today, his own brother quit the party, which is a major embarrassment. Stuart he was a junior minister. Ashley he was a junior minister. He is a remainor and has made no bones about it. For Boris Johnson, hes lost a series of votes in parliament and now his own brother jumped ship. It hasnt been a good week for Boris Johnson. Doesnt mean this isnt going to happen but its not good. As for mike pence, hes come in, hes gone, not really, you know, just with the message of we will get a trade deal done with you but you have to get out of the eu first. Stuart i asked a silly question, what does it mean to us in america. I dont think it means anything to us in america. But its fascinating to see whats going on in our principal ally. Lets get back to Gary Kaltbaum. Why should we care about the events in britain and brexit . Well, the uk is contracting as an economy right now. If that continues, not good news on top of germany and a few others over in europe. So it does matter. But the good news is, the pound keeps dropping so if you want to go visit the uk, you are going to save a heck of a lot of money compared to five to ten years ago. I think thats the big story. Stuart thats only Silver Lining you can find. Okay. Right now. Stuart hold on. Ive got more for you but i want to check on slack. Its a Business Software maker, obviously. They just issued their first Earnings Report since they went public. The stock is going to be down big at the opening bell, 13 lower. Whats going on . Susan its going to be down big because it was a dismal quarter for them. They had losses ballooning ten times from what they saw last year, 359 million is how much they lost, also growth is slowing which isnt good for a company thats still losing money at this point. They only added 5,000 new users in the quarter because they spent less on advertising, and theres a lot of competition as well. Microsoft also has a groupchat software that has 13 million daily users. Slack has 12 million, 10 to 12 million, less than microsoft does at this point. But their users arent created equal according to the founder. But he says they do have paying subscriptions and thats a small number right now for them. Stuart here youve got another ipo thats underwater. Susan thats right. Stuart like uber and lyft and a couple of others. Susan right. Stuart not good for going public. Susan it has not been a good year for a lot of these unicorns like uber and lyft. What does that mean for future ones . Peloton is set to list. Is that good guidance for these type of listings and should you buy in if you dont have performance in a lot of big tech names . Stuart good question. Im not going to answer it, either. Two numbers this morning on jobs. First of all, private sector job growth from adp. 195,000 new private sector jobs last month. I would call that pretty strong. Weve got a very low reading on what i call the firing rate. 217,000 layoffs last month. Gary kaltbaum, come back in again. Those are strong jobs numbers, any way you look at it. You think the strong jobs market is confirmed tomorrow morning with the official big jobs report . I would say well have a decent number tomorrow. Usually does when you get a number like this. Look, theres been a lot of talk about recession for the last couple of months. The media was driving that baby home 24 7 for a couple of weeks. I havent been on the recession call. I think were slowing down and you can see it in manufacturing but jobs are still in very good shape and thats going to be a driving force going forward. If the job market stays strong, its going to be very tough to contract the economy here. Stuart okay. One more for you. I got a shock this morning when i saw that apple was borrowing money along with disney, deere and other Blue Chip Companies. Apples got 200 billion in cash. Gary, explain it for me. Why are they borrowing more . When you can borrow for nothing, you go ahead and do it. That is one of the good outcomes of this ridiculous easy money and the lowering of rates everywhere around the globe. You make hay when you do it. You know, you get to write off the interest as a company and all that fun stuff. I think its the right thing. We will see a hell of a lot more. I must tell you, i think the u. S. , we will start doing 50year bonds real soon because Interest Rates are too low and it helps out our Balance Sheet also, even though our Balance Sheet is a nightmare right now. Stuart i would like a 50year mortgage but im probably not going to get one. You dont want that. Ashley whos going to repay it . Stuart i wont live to see it paid off. Gary, thank you very much indeed. See you again real soon. Its a rally. We will be up 250 points plus at the opening bell. Trade talks are back on with china. Thats the headline. Thats why this market is up. Look at amazon. We have someone on the Program Shortly who says that stock is going to 2600 a share. He will make his case in a couple minutes. We have to get to the sevenhour marathon Climate Crisis town hall. Seven hours. Bernie sanders says weve got to ban fracking all together. And of course we are following dorian, heading towards the carolinas, getting bad. Jeff flock is going to be with us all morning. So, by the way, is the ceo of Royal Caribbean, the shipping line, the cruise line. They are sending a ship full of food to the bahamas. Good stuff. Big day. Just getting started. You wouldnt accept an incomplete job from any one else. Why accept it from your allergy pills . Flonase relieves your worst symptoms including nasal congestion, which most pills dont. Flonase helps block 6 key inflammatory substances. Most pills only block one. Flonase. Inalso available in hybridts kind leall wheel drive. Sport. Lease the 2019 ux 200 for 329 a month for 36 months. Experience amazing at your lexus dealer. Stuart the home builder hovnanian reporting profits, looks like they were pretty good because the stock is up nearly 11 . Im going to talk to the ceo of hovnanian about those numbers later on the program today. Then we have a data base of facebook users phone numbers, its been leaked. Reportedly more than 400 million accounts affected and the stock is not affected at all. In fact, its up two bucks at 189. Same old, same old. Its teflon. Breaking news on weworks upcoming ipo. Ashley . Ashley it was valued at 47 billion, its been almost slashed in half now. They are considering this maybe down to 20 billion. Why . Well, amid ipo skepticism, for sure. We were just talking about this earlier, susan was. Now from 47 billion down to 20 billion range. Its the office space sharing company. I think they have longterm leases of 50 billion. Susan they have been raising a lot of debt as well heading into this ipo. So theres a lot of questions surrounding whether or not this 47 billion valuation is worth it. Softbank also an investor, lost in the uber investment. Lets see how wework goes. Stuart these ipos, something of a problem there. Lets move on. Cnn held a climate town hall with the democrat candidates. It was seven hours long. Okay. We boiled it down to a minute. Roll tape. God is watching as poison is being belched into the air of creation, and people are being harmed by it. Countries are at risk of vanishing in lowlying areas. What do you suppose god thinks of that . I bet he thinks its messed up. This is on par with winning world war ii. Perhaps even more challenging than that. One of the reasons i loved the framing of the Green New Deal is it uses some of the language we might associate with the way that we met the response of nazi germany in world war ii. We should be leading the world to a Global Energy transition and you have a president who thinks its not real. That is idiotic. Do you plan Plastic Straws . I think we should. Yeah. I mean, look, im going to be honest, its really difficult to drink out of a paper straw, like if you dont gulp it down immediately it starts to bend and then the little thing catches it and then, you know, so weve got to kind of perfect that one a little bit more. Stuart uhhuh. Okay. Daniel turner is with us. Hold on a second. The United States is the king of Carbon Emissions reduction. That is a fact. So why are all these candidates being so negative . Yeah. They have yet to explain how two things happen simultaneously. How we are lowering our emissions and at the same time, increasing the amount of fossil fuels that we are producing and building our economy. They havent been able to square that circle. This was really just seven hours, stuart, i watched the entire thing. I felt like i was in clockwork orange where im strapped to the chair watching hours of nauseating film. It was devoid of science, physics, math, economics, it was seven hours of just socialist talking points. It was torture, honestly. It was torture. Stuart it was selftorture. You didnt have to do that, you know. I have to. Stuart yeah, you do. Look, i just want you to look at what Bernie Sanders said about fracking. Heres the quote. Any proposal to avert the Climate Crisis must include a full fracking ban on public and private lands. Daniel, it is fracking which produces our natural gas, and it is natural gas which has allowed us to cut our emissions where everybody else is still rising. Certainly china and india. Whats he talking about . Exactly. They get away with these ethereal comments, you just heard one in the earlier clip, we are putting all this poison into the air, things like that. I heard one of the candidates say there are millions of people in america who dont have access to clean water because of fracking. We have close to two million fracked wells in america. We have fracking in many parts of this country and look at what its done to oil and gas prices. Look at what thats done to food prices and to transportation prices. This is just the economic inconsistency that none of them want to deal with. Instead, Bernie Sanders has a proposal to fight Climate Change, said more taxpayer funding for abortions in third world countries to reduce the population. How are we having this conversation . These people are serious candidates for the president and these are their solutions . It was shocking, the stupidity i dealt with. Stuart well, hu you had to sit there for seven hours, good luck to you. You survived it. Youre on our a at 9 air at 9 0e morning. Thanks for suffering through that and reporting on it this morning. Much more on Bernie Sanders coming up, top of the hour. I will have a my take on him. By the way, joe biden, he was asked a question last night about fossil fuel executives committing crimes against humanity. He did not push back on that at all. Unbelievable. We will tell you all about it. Look at futures again, please. We are going up this morning. A gain of 275 for the dow, better than 1 gain. Same with the nasdaq. Its a rally. Well be right back. Here, it all starts with a simple. Hello hi how can i help . A data plan for everyone. Everyone . Everyone. Lets send to everyone [ camera clicking ] wifi up there . Ahhh. Sure, why not . Howd he get out . a camera might figure it out. That was easy glad i could help. At xfinity, were here to make life simple. Easy. Awesome. So come ask, shop, discover at your xfinity store today. Stuart new tweets from the president. Here we go. Start with this. Bad actress debra the mess messing is in hot water. She wants to create a blacklist of Trump Supporters and is being accused of mccarthyism. Is also being accused of being a racist because of the terrible things she said about blacks and mental illness. If Roseanne Barr said what she did, even being on a much higher rated show, she would have been thrown off television. Will fake news nbc allow a mccarthy style racist to continue . Abc fired roseanne. Watch the double standard. That just came to us. Look at the stock price of amazon, please. It is actually up, what, 20 this calendar year. Our next guest says its going much higher still. Joining us is mark mahaney with rbc capital markets. Amazon right now, 1820 a share. You say its going to 2600 in 12 months. Make your case. Yeah. Amazon is pretty wellknown. Of the large cap tech stocks, it may be the most consensus long on wall street. Theres still a couple of things we think are underappreciated about the company, however, and one is the impact of this oneday initiative. They announced this back in april, weie accelerating Revenue Growth in the june quarter because of it. We think its about a third of u. S. Households and they will roll it out, taking the prime service all of us are familiar with and making it oneday guaranteed delivery. We think whats going to happen is thats going to cause an increase in Adoption Rate for prime. There will be more prime households and the prime households will spend more with amazon with that accelerating Revenue Growth and eventually expanding margins, call it two to three years, materially expanding margins. I think that sets up the company to generate cash flows that would support 2600 price. Stuart you make a good case. What about the tariffs . Concern about tariffs . A lot of the stuff that they sell on amazon comes in from china. Any concern about tariffs . That is a concern. Of all of the u. S. Internet or Global Internet companies, most of them actually unfortunately have very little exposure to china, mostly for political reasons. The one company that does have relatively material exposure to china is amazon, both as a vendor in that country and in terms of maybe almost half of the products that are sold via the amazon marketplace, not by amazon directly but by Third Party Vendors come from china. So yeah, there is a risk there. We havent seen it show up in the fundamentals yet. It could in the future. Thats one of the two or three biggest risks. Stuart that was a gutsy forecast, 2600 within a year. Good stuff. Thanks very much for joining us. By the way, do you personally own amazon stock . I dont. Stuart okay. Got it. Thank you. See you again soon. Check out that market. We are opening up in four and a half minutes. We are going up, 280 points maybe. Its a rally. Back in a moment. Liberty mutual customizes you