The media giant also announced it is removing its movies or will be from netflix and itll launch its own streaming service. We have someone who says launching a mini netflix could be more difficult than disney thinks we have a lot to talk about disney down almost 5 today. North korea, well get to that in just a moment. Mylan warning today its delaying product launches because of regulatory uncertainty. The latest data shows the drug approvals are on pace to set a record this year what kind of uncertainty are they talking about shares trying to stay positive well have the details coming up and blue apron is rallying ahead of its first Earnings Report as a publicly traded company, thatll be tomorrow the stock is well below its 10 ipo price. As you know, we have a debate on whether there is a buying opportunity ahead of tomorrows news look at that, its up 5 today well, its at 6. 11 right now. That would be a 30 cent raise. Lets start though with this very serious story, the tensions rising between the u. S. And north korea which are weighing on the market for a second day running here, the dow as you see down 74 points thats just about the lowest for the session. Kayla is in washington now with some of the latest details for this day, kayla. Bill, those tensions have escalated over the last week with north korea issuing threats to the u. S. In response to new u. N. Sanctions and the president yesterday responding with a threat of his own. In a briefing that is still ongoing right now, state Department SpokespersonHeather Naurt said the diplomatic effort is working even as other members of the Administration Talk up u. S. Military capabilities whether its the white house, the state department, the department of defense, we are speaking with one voice. And the world is in fact speaking with one voice. And we saw that as it come out of the u. N. Security council with the resolution that passed less than a week ago the United States, along with other nations, condemned north korea for their destabilizing activities secretary tillerson on a multistop tour in asia sought a reassuring tone. Stopping over to refuel this morning in guam. The u. S. Er toir that north korea is now threatening to target, following the president s warning of fire and fury should provocations continue. It was a harsh statement drawn in comparison to president trumans reign of ruin remark as he dropped an atomic bomb. Sarah sanders pushing back on reports the comments were kpreetly improvised telling the press pool, they knew in advance hed address the issue in no uncertain terms. General kelly and others on the nsc team are aware of the tone of the statement prior to delivery the words were his own the president obviously choosing to ad lib a bit, though sanders saying kelly and bill will know that he was going to take a very strong stance on north korea all right kayla, stay with us. Were also bringing joel wit in, hes a senior fellow at Columbia Institute for east asian studies. Professor, thank you for joining us you know, so were all sitting here trying to figure out what happens next how are you thinking about about this well, i think this kroiz is clearly escalating, but were not yet at a break point where were going to have a military confrontation. The problem is, it feels like were drifting to that point, and i think that would be a very serious mistake. Clearly, but is it inevitable what can be done in the meantime what role does china have to play we get around to that question, what china can do to try and deescalate this tension here what do you think . Well, ive been working on this issue for 20 years. And in the u. S. Government, outside of the u. S. Government and i hear is china, china, china, the fact is china is not going to save our bacon here because the chinese have other national interests, including maintaining a stable north korea. And that might not continue if too much pressure is on pyongyang. So china wants us to start a dialogue with north korea and so far, were not being responsive to their requests. Kayla, what is the feeling . The u. S. Is being naive by believing that north korea is on the verge of some kind of u. S. Strike or being naive to, you know, to think that that wouldnt happen . Well, there are some questions, kelly behind the scenes in terms of exactly to what extent the cabinet members. We have the president talking about the u. S. s military capability on twitter. We have defense secretary mathis talking about how u. S. And allies are unmatched in their military capabilities. He said that a couple of hours ago. Then you have secretary tillerson saying that hes still opened to diplomatic talks if north korea would cease its missile test, then you have the Vice President also seeking some diplomatic reassurance as well also guys, remember, there is no ambassador to south korea. There are a lot of these ambassadorships in that region that are still open, and thats something i think a lot of people are focussing on when you need real on the ground expertise in a moment like this. Professor, so youve been studying these for 20 years, what would you do . I mean, if chinas not the answer to this, and its clear tillerson said the other day, we dont Start Talking to the North Koreans until they agree that theyre not going to fire any missiles anymore. Already setting up some red lines there. What would be your beginning to find a solution here well first of all, i think its true that we do need to step up pressure on north korea when they take provocative measures such as their missile tests. So the u. N. Sanctions are fine but what we need to do is also open an escape route for the North Koreans, and that means starting a dialogue with them without preconditions. Aye been talking to North Koreans also for 20 years, and they will tell you theyre willing to sit down and talk, but not if there are preconditions to those talks all right professor, thank you for joining us today and kayla, well see you later, im sure as this day progresses to the markets now, where can they find safety lets get to the exchange down 78 points right now. Janet brown from fund exinvestment group is here with us at post nine, so is kenny from laneil securities and Rick Santelli im going to start with you my friend today because nothing is too exaggerated in this market anymore, but when you think about it, youve seen a slight decline in ten year yields today. Youve seen a slight increase in gold prices today. You know, the kinds of things that we would call a safety trait, stocks are down, do you see that as a response to these tensions with north korea or not . In this case i do, its hard to refute when you line up the charts and the headlines at the yen, the swiss frank, good high quality paper and sovereigns and thus all the spreads are affected you could even make a case maybe some of the junk and the higher risk products were affected, but that could be a function of the drop and the end of the record in equities. But yes, its there. The problem is or the issue is, is that they have a really small halflife and the moves really arent that large. I mean, were talking several basis points in treasuries, which isnt a lot and really, you know, right now were only down two on the day with respect to tens. It did show up i think a bitin the ten year auction for very counterintuitive reason, the marketed rally on flight to safety, and that lack of concession made for a really messy auction. But in the end, i really warned that if, you know, investors are trying to gain geopolitics to get better trades, better be really fleet footed. Janet, thats what you were saying, these questions have been swirling around, and whats your response to all of that exactly avoiding all risk is actually a pretty risky strategy. So staying balanced with the portion you want to avoid risk, you could be on fixed income, you can use a tactical strategy. A lot of clients lack the tactical strategy. I think youve got to know that you want to participate more on the upside than the downside and be ready to get more aggressive. As it will, we know it will. Where do you go for fixed income for fixed income, were in floating rate, were in high yield right now, were in strategic funds, fidelity has a good floating rate what are you getting . Well, i know, like right now. Did 5 over 5 the last 12 months when the bond market was flat so being in the right place at the right time, you can still do pretty well on fixed income. You mentioned, mentioned off the top here that, you know, meanwhile have the dow way down by that. Theres a lot of Company Specific stories while all of this is percolating, put it in perspective for us. Disneys down 5 you said today, the dow is down only 86 points, itd be interesting to see what disney is contributing to the dow lost. If you take disney out, what is the dow really down . Is it down that much that goes to the safety trait. When you think of dow stocks and the dow 30, the big america in a blue chip names. Theyd be a place that investors to want find some safety whats interesting, weve had earnings disappointments before this one here but the market is continued higher now the market is going to go down. Now i think you have that absolutely, you have the geopolitical issue that has changed a landscape. When you think about it, your markets when i came in this morning, they were down 1. 5 across the board this, you know, were not even down a third of 1 right now and thats where the s p probably gives you a purer read. Thats exactly right. So i think the sense is as much as people are clearly concerned, i think that the market is assuming its not going to blow out of control and there will be clear heads in the end will prevail. What are you going to do . Typical person supposed to figure out whats going to happen here and react . I mean, what nobody has any clue how this could play out no, so i think as janet said, you know, you have to be tactical about it. You have to design a portfolio that youre comfortable, that you feel good, thats conservative maybe, maybe more conservative look whats down today biotech is down today. Tech is down today theyve taken money out of the stocks. Unless those are opportunities. Ready to take it. At these levels, do you feel the market is extra vulnerable to a geopolitical problem of some kind kpch. I dont youre going to keep putting money in it. No, stay conservative, but, you know, when it does sell out, get more aggressive. And with a sell off could be sharp because if people get really nervous, theyre going to take the cash, put it over here or bid way down low because they dont to want stand in front of a moving train so let me bid low and see how nervous the sellers get. You could see a correction happen quickly, then you have to be ready to react. You see the bounceback happens quickly too. I had that one day and i missed it as rick said, theyve got a halflife. Thank you folks. Appreciate your thoughts on the market action. Little more than 45 minutes to go. Maybe half of the dows decline is busy. Im sure somebody in our research staffs going to tell us any moment now. I think its around we were talking about this, eight points per i dont know anyway, s ps down six, nasdaq, look at that, down 36, more than half a percent today russell 2000 is down more than 2 we are going to discuss how generic drug pricing pressure will keep it back in the stocks. Blue apron shares down 40 since the ipo in june. Coming up, well debate whether to buy the stock before it releases earnings for the first time as a Public Trading Company tomorrow or not. And we to want hear from you, reach out to the show via twitter, facebook, or send us an umail at nbcuni. Com yore watching cnbc, first in business worldwide this is not a cloud. This is a car protected from storms by an Insurance Company that knows the weather down to the square block. This is a diamond tracked on a blockchain protected against fraud, theft and trafficking. This is a financial Transaction Secure from hacks and threats others cant see. This is a patients medical history made secure while Still Available to their doctor at their fingertips. This is an asteroid livestreamed to millions of viewers from 220 miles above earth. This is ai trained by experts in 20 industries. Your industry. Hello. This is not the cloud you know. This is the ibm cloud. Built for your business. Designed for your data. Secure to the core. The ibm cloud is the cloud for enterprise. Yours. So thats the idea. What do you think . Hate to play devils advocate but. I kind of feel like its a game changer. I wouldnt go that far. Are you there . Hes probably on mute. Yeah. Gary wont like it. Why . Because hes gary. phone ringing what . Keep going yeah. laughs voice on phone its not millennial enough. There are a lot of ways to say no. Thank you so much. Thank you so were doing it. Yes start saying yes to your companys best ideas. Let us help with money and knowhow, so you can get business done. American express open. What has been lately a rare down day, the dow down 74 points right now. I think it was down 80 at the lows, well stop that right now with the s p down about a quarter percent, its the russell thats taken the biggest hit today, down more than 1 dollars not even that week 93. 5 mylan shares are trying to close higher and announce itll defer drug launches until next year. Mylan is reporting a backdrop of a tough earning seasons for generic makers people coming into this quarter for mylan expecting potentially the worst. You have been seeing shares under pressure you can see the tremendous drop they took last week. Saying that u. S. Generic drug prices have been under pressure and will continue to do so coming down on that warning as well wells fargo putting out Research Last week and then warning about the mylan results this week showing that sales volume has been on the decline. You can see there months there, down 12 so this has been prettybad, an they expect that to continue also affected by increased competition for their epipen including their own authorized generic version they said they would launch last year amid the pricing controversy. They are going to delay some big generic drug launches until 2018, taking that out of their 2017 gooins. Sending an uncertain u. S. Regulatory environment right now. Those are generic versions and asthma drugs so those expected to be big launches if and when they come and in terms of the uncertain regulatory environment, interesting one. The fda in terms of generic drug approvals is on pace to set a record year here after 651 last year in 2016, 633 already this year with two months more to go in the fiscal year. However, the generic drug approvals theyll delay until 2018 those are complex generics, similar to the epipen, but we havent seen that competitor and thats where the fda commissioner said he wanted to speed up the fda im trying to muster sympathy that theyre sad that generic drug prices are going down. Thats true and interesting because you are hearing people warn they could come down so far, you might start to see isnt that the point of the generic drug though. It is a point theres a great story from the New York Times wondering if thats getting passed on to the consumer big discussion. Lets talk about this more, meg, stay there, timothy, tim, welcome, is mylan overreacting is the regulatory process too onerous for them right now i think myslan going through a transition phase they have some interesting generic block buster products in the near future. You mentioned advair, others as well i think these are very tough to formulate products it takes longer to put the stamp of approval on them. I think 2018 could be a big year for mylan. So is the problem affecting mylan the same one that the whole industry is dealing with, or is it more specific to this company. Absolutely, its a phenomenon i think mylans business though is global. Only about 40 of their business is based in north america, but they are the number one or number two generic drug company by volume. They too are facing price erosion. What do you contribute the stocks recovery today down 88 earlier today it has come back and its starting to close in the green what do you think is driving that something substantive or covering well look, mylan cut their guidance and that was sort of expected they had already signalled that their generic business was facing pricing pressure and i think it was sort of a given that mylan would also face that same identical pressure when they reported their Second Quarter results. Look, the uncertainty is baked into the stock price here. Thats why i have a buy on it and a 42 price target look, i was being lib earlier about gee, theyre complaining that drug prices are going down, but is that a function of supply and demand right now or is Something Else going on here with generics specifically yeah, its a combination of two factors. First and foremost, youve had sort of a lengthy process for generics to get through. Theyre more reliant on bigger ticket items because theyre so large in the u. S. And their top lines are 15 billion or more. So, you know, my feeling is, its a combination of the older based business eroding, combined with the fact that the timing of the newer products is really still maybe two to three quarters away. Meg, does all of this have to do with the change in administration and whats happening . Was this a concerted effort to speed up approvals its been something youve been seeing far little while you did see high approval. This is something the new commissioner has focussed on deeply and he is speeding up the generics as well well see in if that comes through in the next year. Yes, we will. Meg, thank you, as always. Tim challenge, thank you for joining us as well 38 minutes left in the trading session. Slowly coming back down 67 points, disney announcing its going to pull its movies from netflix, but coming up, whether investors should be concerned about that or if netflix is much morereliant on its own original programming and speaking of which, oprah has a tv network own shelves in supermarkets we have new details on her move into foods when we comrit ck ay with us im living that yacht life, life, life top speed fifty knots life on the caribbean seas its a champagne and models potpourri on my yacht made of cuban mahogany, gany, gany, gany, gany watch this dont get mad bell mnemonic get e trade and get invested you are loved welcome back the dow is down 66 points right now, s ps down five, nasdaq down 29 and the russells down 16 and disney, we got the answer multiply by seven so its accounting for 34 points in the decline there. S