Percent. Nasdaq down 53. Major Market Indices falling better than 1 yesterday, the selloff coming after surprise decline in Manufacturing Activity after the World Trade Organization cut global trade forecast for the year, we told you about that yesterday, joining us hodges capital manager, craig hodge. What did you make of manufacturing data and what do you think that tells us about the economy and the markets. Its obviously not positive, we put all the manufacturing, its only ahird of the economy, we are a service economy, consumer is over 70 , one data p, as we go, the consumer what youre talking about the jobs and payroll, that would be more important as we go along. Maria look at the reaction, we have been talking about manufacturing weakening for a little while, dagen, but the market was sizable decline on this news. Dagen because this index contracted in august and expect today rebound above 50 plus and came much worse than expected, worse than literally every estimate that was out there. Just a few things to quickly put out to put it in perspective, weakness in production, backlog exports, one factor that was still above 50 was supplier delivery times but that also fell in september, this could be related not to the broad global slowdown, not to trade tensions, not to weakness in the economy but also boeing and the 737 max jet and also the General Motors strike would be weighing on this. But the fact is that this has a broad impact despite it being a small share of even our gdp, 11 of gdp but manufacturings influence on goods production as those goods are made and then transferred, loaded onto trucks and transferred across the country, the journal points out today, when gdp at 8. 4 annual rate in Fourth Quarter of 2008 during the financial crisis, goods production accounted for the vast majority of that decline, 7 and a half Percentage Points of that decline. Huge, huge impact broadly speaking. Maria what do you want to do in terms of investing today . Yeah, we are focused on the small caps, we think theres a real opportunity in small cap stocks, they are underperformed tremendously, in fact, variance of 10 or more in history, 85, 91 and 98 and every time that the small caps have from the general market die vernalled more than 10 , within 12 months, its more inexpensive place to be and so we are focused there in the small cap area. Maria do you worry about the selloff weakening given the economy is slowing . Not tremendously, we have a pessimistic view out there even though we are near highs and the market has really been resilient and lets look at it from a historical standpoint, the market is not expensive with the lower rates. Maria schwab commission rates. Incredible, no commissions charge. Amazing. Maria how do they make money . Through margin accounts, through fees. Its really an asset, youre trying to gather assets, they make fees in every way they can. We want to talk about economic backdrop, adp report is out this morning, expectation for 140,000 jobs added to the economy in the month of september, then we will get the september jobs report on friday, 145,000 jobs expected that month with Unemployment Rate 3. 7 . How do you see things . The thing that worries me abou jobs numbers is inability of finding workers. One reason manufacture asking down, 58 of employers in manufacturing, Small Businesses that were looking for employees, couldnt find them, how do you add jobs, how do you continue to grow at accelerated pace when no matter what business they talk to theyll tell you they cant find employees, we need to add qualified employees to continue growing. We hear from we hear 2600 company checks, 850 companies and we are hearing a lot the same issue, hiring people is hard and the big problem is people cant pass drug test. Maria a couple of years ago, walmart decided that they were going to stop testing for marijuana, everybody they tested, to, really, they thought they were finding good employees but they failed the drug test, marijuana test, anyway, i dont know where that stands now, youre right, big issue. This is one area that we, i thought we would see further weakness after salt deduction in new york was taken away, whats your take on real estate right now . Some markets are down because of salt. New york is down on residential condo side, wework is going to disrupt the new york city commercial market and washington, d. C. , San Francisco, you are florida doing exceptionally well, charlotte, north carolina, durham area doing really well, you some aspect of real estate doing well but big driver in construction has been new york city, los angeles and then some of the other markets, i think dagen is right, you look at the reduction of manufacturing because of boeing, the uaw and i think also theres a shortage of workers and none of those are bad news kind of bad activities in the economy in terms of the economy itself, i think the economy is doing pretty well, when youre full employment, wages are moving up and wages moving up in free market way as opposed to being on employers like new york city is trying to do and other more progressive cities and states, if you will, i think these are pretty well on real estate, its just where youre doing business and i think right now for new york city, new york city is in a lot of trouble and going to face a lot of pressure and going to continue to see downward pressure on prices and i think you will see stress in financial markets, big savior right now is low Interest Rates. Maria rockbottom rates for sure, does that help anything in terms of backdrop in. The rates are but don mentioned two places, tennessee and florida, zero state income tax. I moved from california, one of the reasons because california is a terrible place to do business and you pay a lot in taxes, you find tax policy having real impact, don is absolutely maria we have been talking about the cities of this nation really seeing terrible situations, San Francisco, la and now new york, we will get into that. Final word from you, craig, in terms of this market, what do you catalyst in terms of next move in investing . Earning season start in about 10 days that will be the next real catalyst, expectations are pretty low, any sort of selloff, any sort of volatility, we will try to take advantage on that. Maria craig, great to have you. We are Getting Started this morning, also next digital founder and entrepreneur jimmy with us live discussing the latest on hong kong, hes on the front line of those hong kong protests as somebody was shot yesterday, we will talk about that tennessee mark green is here. Former ceo and now commissioner of the wnba kathy joining us in cwaa paying College Athletes plus investing, chairman and ceo mario here on septembers manufacturing data and allocating capital today, big 3 hours coming up, stay with us, short break and impeachment inquiry, secretary of state mike pomp bow is warning democrats to stop, quote, bullying as he ready to speak from italy, next hour, north Korea Fires Ballistic Missile days before talks are set with the u. S. , coming up things you can do with schwab you can earn more when you invest your cash. You can get a satisfaction guarantee. You can also wonder why our competitors dont offer that. Schwab, a modern approach to wealth management. Performance comes in lots of flavors. dramatic orchestra theres the ampedup, overtuned, feedingfrenzyof sheetmetalkind. And then theres performance that just leaves you feeling better as a result. Thats the kind lincolns about. Maria welcome back, secretary of state mike pompeo holding joint News Conference with italys Prime Minister after named fact witness in democrats push to impeach President Trump, fox news Griff Jenkins with the very latest, griff, good morning to you. Good morning, maria, we hope to hearing from secretary pompeo being addressed as being labeled fact witness, pompeo has been pushing hard against democrat subpoenas, former state Department Employees issuing letter, they can be understood as attempt to intimidate, bullying and treated properly and several Career Foreign Service officers, democrats wasting no time responding writing secretary of state, pompeo has conflict of interest for reportedly participating in ukraine call and now trying to cover up the list of activities adding any effort would, quote, any effort to intimidate will prevent witnesses from testifying or reporting documents and evidence and meanwhile President Trump whaling against the inquiry, it is a coup, 2020 hopeful harris tweeted at jack dorsey, hey, at jack, something to do something about this, as state Department Inspector general heading to capitol hill after making urgent request to secret lawmaker, specific reason unclear, we should find out more tomorrow by the way the former u. S. Envoy on capitol hill, maria. Maria thats the testimony that everybody is waiting on, kirk, we will watch that. Absolutely. Griff, thank you so much. Griff jenkins in dc, hong kong unrest continues, the city reeling after most violent days of protest days yet, marking 70 years of communist rule, live to hong kong when we come back, activist, special guest and then nogo, the United Auto Workers rejecting gms latestort, protests in week 3 in detroit, back in a minute hmm. Exactly. Liberty mutual customizes your Car Insurance, so you only pay for what you need. Nice. But, uh. Whats up with your. Partner . Not again. Limu thats your reflection. Only pay for what you need. Liberty, liberty, liberty, liberty 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. 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Maria welcome back, hong kong bracings for more violent protests, take a look at the scene overnight this as prodemocracy demonstrateors scuffled with demonstrators, next digital founder, Majority Shareholder democracy advocate, jimmy, tell us where it stands today. Well, after [inaudible] i think the movement has turned to a new page. I dont know what will happen, itll get more violence but i hope they dont escalate the violence with the police because our resisting movement has to proceed and for long time to wear out the chinese after the pressure of the world, so, you know, we escalate violence which would be wrong thing to do. Maria what do you think, does this represent turning point in terms of turning violence . Yes. Maria you do . Yes, yes. I think the key maria what do the people we wanted to, the last time we speak we were talking about universal suffrage, the ability for hong kong to choose their own leaders to elect, is that one of the main sticking points . Yes. Maria tell us more. Well, now its very obvious that we what need is universal suffrage to have the right to elect the chief executive and lets this is, you know, why we were entitled in basic law that, you know, by china in 19 in 2014. So, you know, now we are fighting maria jimmy, have you seen support from the world on this . Many of us know hong kong to be an International Hub for Global Business among other things, freedom, i mean, the promises that hong kong was made with the handoff from beijing. Right. Maria do you think that youve seen support from the world as a result of some of these proms being broken . Oh, yes, definitely, the world knows that, we are fighting for the right thing, the world knows that china has, you know, on their promise, on the law, we are getting a lot of sympathy and support, moral support in the world, definitely. Maria where is this going, look at what is going on in beijing this morning, showing up military hardware, the communist party celebrating 70th anniversary of communist rule to highlight the new weapons including drones, nuclear missiles, some of these missiles can have a range as far as the United States not to mention the south china sea, how does beijing military might Impact Hong Kong in terms of the message that beijing is trying to send . Well, i they would not be able to intimidate us because we are determined, you know, to fight for this suffrage, we have to keep the way hong kong has been, we come and let them take away our freedom or encroach on rule of law and human right and all that, you know, thats why, they have nowhere to go, they can oy fight, they cannot accept the life, the same as those chinese in china, they cannot accept that. Maria im glad that you said that, tell us who are the people who are actually protesting, you say the kids, this is a lot of young people worried about their future, isnt it . Right, mostly the kids are in the front. We old again generation havent done over, we havent done anything for them, so now the kids turn, kids say, okay, if you havent done anything after 30 years, how about we try our way and thats why we have no other say except to support them, so, you know, i hope that they wont go, you know, go really escalating the violence too much, you know, because otherwise we will lose our moral authority and what we are worried about now. We are with them, we are united together, we will not be separate for kids. Maria right now the president in the u. S. Is trying to negotiate over trade deal, from your standpoint in the middle of these now violent protests in hong kong, what do you think the u. S. Needs to consider when doing a deal with china . Well, hong kong definitely is a very good for them to make the view because, you know, what hong kong people are fighting for is the same share value as the u. S. At the end of the day the trade war is a fight of opposing values, behind the trade war is a new cold war, the cold war is rivalry of opposing values and we are we are, you know, fighting with the same values. U. S. Is fighting with china. Maria yes, this is a debate or a war over values, about how to govern as well, you know, we talked a lot about in the past about how and when things change, you said when when xi jinping came into power, there was a change, hes obviously a dictator for life, tell us what happened when he was named the president in china and how when you began to feel differently in hong kong. Well, i think he has posed himself as a strong man, tts a danger, you know, and since he has been, you know, for 7 years we have seen our freedom, you know, our rule of law is being this is why this time hong kong people, you know, just have different law all stood up to fight for our freedom because last 7 years, we know that, encroachment of freedom is getting more and more surreal, its very obvious and thats why this time we have to stand up and fight, how long are you expecting this to go on, we dont know, its a very difficult thing to do, i dont know that they would be alternative to us we will lose everything and this is why this is only way we have to do, this is the only alternative, theres no other alternative for us except we surrender to the chinese control which we are not leading to. Maria jimmy, real quick as we wrap up, can you give us the sense of what went on today, the end of your day there, 6 26 in the evening in hong kong, was it just as violent as we saw over the weekend . Well, yesterday was tuesday, was very violent, kids were confronting the police and thats the day that young boy was shot by real bullet, luckily hes not not fatal. We dont know today yet. Im sure in the evening theyll be other confrontations by the kids in another 6 or 7 phases. Maria yeah, i know that china is tracking everything. Its going to go on. China is tracking everything, you have the facial recognition cameras all over hong kong too, people must be afraid because china right, right. And also some of the kids, the most wild impeached like those who flow the petro bombs, i heard that, they know who they are, like 40 or 50, they know each one of them but they arrest them, i dont know why they dont do that, you know, because they want more violence which will keep them on movement or they want people to get so annoyed by violence of demonstrator that we turn around and and will not support us any more, i dont know what they want. They definitely want to resolve the problem by violence. You know, this is the only way they see this t solution to it without having to talk to us politically, to solve the political problem. Maria yeah, jimmy, we are watching whats happening, we appreciate your time and catching us up and we are with you, thank you so much, jimmy, thank you so much. Thank you so much. Maria live from hong kong, coming back impeachment inquiry, mike pompeo warning democrats to stop bullying, hes in italy this morning about to hold News Conference later this hour and we will take there you live, Johnson Johnson reaching settlement on opioid crisis, the numbers on j j, back in a minute. Instantly and pay over time. And that turns them into serious fans. Hang on, theres more. Want Customer Insights . Weve got those, too. We use data to show you what your shoppers have already bought so we can te