Stock exchange. We await for a fed meeting to begin tomorrow. China slips 3. 5 overnight. Japan leaves policy unchanged. Back here, retail sales okay. July revised up. Good auto sales offset by lower spending at the gas stations. Ahead of the rate decision, former central bankers are out today with more pronouncement force the fed. Asia continues to suffer. Shanghai down 3 as the bank of japan holds on a rate move. An upgrade forfe fitbit. More data for the fed to digest ahead of the twoday policy meeting set to get underway tomorrow. Retail sales up 0. 2 . Last month stripped out auto sales up 0. 1, that marks six consecuticon seco consecutive months without a decline. How does this get digested at the table tomorrow . The areas that are strong in the economy are rate sensitive. Autos, housing. I know a lot of people say bring on the rate increase. But you just mentioned where the strength is. That strength can be taken away. It can be taken away by a belief that unless the statement contains one and done, youll Start Building in what i regard as being bad numbers for manufacturers, because the dollar should go much higher and bad numbers for these areas because people will say in 2016, we cant be at 17 Million Units for auto. We cant maintain this housing number because rates will keep going higher. Nobody will say were out of the woods rates. Not with unemployment where it is. Unless they make it clear. Thats go to extremes to say this is it. This is it. Otherwise more of the same. Its incredible. We lose those who own individual the 57 variety of people who own stick stocks i think its 56. You own a stock, youre down 38 cents. When i looked at the pc, she wantses to be called the wife, okay . None of that stuff on twitter. She says call me the wife. Every time we look at a stock, your screen is frozen. Frozen at minus 38 cents. Before you go on, lets interrupt and get to Mary Thompson with some breaking news on ge. Carl, as expected, the company has indicated that the expiration of the Export Import Bank is prompting ge to move jobs overseas. 500 total. 400 to france, 100 to hungary and china. Ge has 11 billion its bidding on and it needs export financing. Its in talks with the French Agency that would provide it and has some backing from hungary and china the countries would require jobs to move there in order to extend that financing to ge. The jobs are coming from texas, south carolina, maine and new york. They are in the power business. Once again, ge is going to be moving 500 jobs overseas because of the expiration of the Export Import Bank. Back to you. Thank you very much. Talking about the fed and expectations. Summers out again today coming at the fed from a different angle saying that even if a hike were a good idea, which he does not believe, they have not gotten us ready to levels going back 20 years where expectations would not match a hike. I went to a Charity Event a couple years ago to honor Stanley Fisher. Introduction, Larry Summers. Larry summers saying this man taught me everything i know. This is the man whos right. This is the guy we talk to Larry Summers is on the exact opposite page as the stated Stanley Fisher the fish every we heard with Steve Liesman. I find this to be inconceivable that somehow the biggest hawk is alive with the biggest dove. Theres some room here. Maybe we get it done and fisher said we have to be on hold because the emerging markets cant handle it. I dont know. These two men are one in the same. Theyre twins. Not anymore. I dont know we know what mr. Fisher has said what we heard from him when he spoke to Steve Liesman a couple weeks back. Larry summers, you want to call him now, hell come on and tell you exactly. He wants the world to know youre telling me that maybe he would be the cohost . You can add summers to raskoff. Summers is basically saying that the scenario that im most fearful of summers has been there. Summers has been seen seen what the dollar can do. Summers wasnt born yesterday. No. My alma mater and summers didnt get along well. Didnt work out well, but still there. Its not like, you know, the hall of fame. Not an hof figure like julio jones is, obviously. Well talk sports later, trust me. Another day of declines in chinas stock market. The shanghai down 3. 6 on worries about slowing Economic Growth and despite Chinese Government efforts to stem the slide. The bank of japan saying it believes the japanese economy can weather a hit from the chinese slowdown. Fiscal spending in china in august up 26 , accelerating from july. Theyll start spending over there. One thing that i think summers could add to his rap is to say were in a quantitative tightening. The chinese, i believe, are selling everything. Theyre selling to be able to prop their economy up. If this whole thing is to keep the shanghai at 3,000, thats absurd. I dont know that it is. Its at 3,500. Theyve done a good job of that. The flat line. They shut the futures market down. You can now sell futures overseas. Did you a piece about this. Do you think they dont have an algorithm if they hear the word sell, not cell, dont you think they knock on your door. Theres been a significant crackdown. There was an interesting story about cidic, one of the big brokerage firms, investment firms. Theyve been suffering, some of their senior executives. Its been broad ranging, but i dont think the stock market is where the issue is when it comes to china. Its a much broader question in terms of Industrial Production, how much things are slowing down. To your point, the fx reserves, how much they will continue to decline from 3. 56 trillion now. Coming down every day as they defend the currency to a certain extent. And what its going to mean to the emerging markets that rely so much on china and deal with their own fx reserve problems. Thats more important than the chinese stock market. This could be about brazil. Brazil built its reputation on sending materials to china. The baltic freight has dropped 200 straight since i saw you last. 200. 1,000 down, 800. Where is the commerce . Theres no commerce. I saw they had some number last week about factory output at 6 . Yeah. Okay. I mean does anyone believe that . Does anyone believe 6 . Some people do. Yeah. They do. Remember the gentleman we had on from im trying to remember who it was. From the big producer. The big bhp. Yeah. Yeah. Hes solid. Hes solid. Yeah. Hes solid. Hes got a stock that looks like top corp. I learned when i was in italy that alibaba means top that was the top. Alibaba is the economy for the consumer. Bhp is the economy for the industry. An article about the number of basic delivery jobs, guys who move to the city, work on their bicycle, deliver goods take them out of the army. They dont need an army. Its the nay i havy. Yahoo embarrassing. Because of the irs, theyre not issuing a ruling i havent gotten an update on yahoo s plans, to those who believe it will mitigate their willing toness to move ahead one alibaba stake, well see. Well get more on that. As i reported last week, despite there wont be a private letter ruling from the irs, they were focused on doing the alibaba spin. The stronger language from the irs about active trader businesses, wanting to see them be much larger than a simple small thing that goes with the spun company could be problematic. Individuals learned a hard, tough lesson there. Dont fear the tax man. They could have sold at 100. They played a bad game. Though they were locked up. They were locked up. That was the strain. Conceivably in a negotiated transaction they might have been able to unlock. Im not sure. They were locked up, to be fair to them. This was a disaster. That they couldnt get the product out. Well see. You can still move ahead with it. They have expensive lawyers well they can still do it. The stock has been a disaster. Been great, now a disaster. Its a disaster because bob is 62. 60. Where is the actual core business . They lost their chief accounting officer. Lost kathy sabbath this week. I thought she was an important gatekeeper. Im still using the sun god, sun trust. I dont like what i see there. They are you know, theyre in a foot race with twitter. Oh. And twitter will lose that foot race. Yahoo could win it. Alibaba is a stock i dont know. Where does that stabilize . We will get Industrial Production in a few moments. Also ahead, david has kyle bass of hayman capital. He has battles with big pharma. Look at the pre market. Yesterday the narrowest range for the dow since august 18th. 120 points. The average since that time, 405 points. Back in a minute. Im here at the Td Ameritrade trader offices. Ahh. Steve, other than making me move stuff, what are you working on . Let me show you. Okay. Our thinkorswim Trading Platform aggregates all the options data you need in one place that lets you visualize that information for any options series. Okay, cool. Hang on a second. You can even see the anticipated range of a stock expecting earnings. Impressive. Whats up, tim . For all the confidence you need. Td ameritrade. You got this. At ally bank no branches equals great rates. Its a fact. Kind of like shopping hungry equals overshopping. We are still in the pregame twoday meeting beginning tomorrow. Futures are moderately higher after china comes down about 3 overnight. Optimistic optimism in germany low. Back in this country, Industrial Production. Rick santelli, hey. The litany of data continues. Industrial production and Capacity Utilization for august is due out. The clock is ticking. Capacity utilization, 77. 6. 77. 6. Industrial production down 0. 4. The down 0. 4 is fascinating. This year started out with five five negative Industrial Production numbers. This makes it 6 out of 8 of these numbers. That minus 14. 67 on an empire was a backtoback some of the worst data that weve seen on manufacturing since the credit crisis. Well continue to monitor the data. I would like to point out the early data wasnt that spectacular. Retail sales wasnt bad. But yields may be moving to a different drummer. Maybe it is the fed meeting. Getting close to 3 in the 30 and very close to testing 2. 25 as we went up to 2. 21 in tenyear notes. Back to you. Thank you very much, rick. Billionaire investor carl icahn boosting his stake in cheniere energy. He owns 22. 7 million shares in that transporter of liquefied natural gas. Its up from a 19. 4 million position not long ago. He already has two guys on the board, remember. He did enter a standstill, but its interesting hes going again jim chenos who came on last week. Nobody can question icahns instincts. He lost a lot of money on energy in the last year, but hes willing to take longterm views and often mr. Icahn ends up being right. Thats how he ends up having 30 billion. Hes down from that high because of his holdings in chesapeake, for example. I talked to the ceo of cheniere. Its very clear two things. He welcomes icahn. Guy is a smart guy. Guy wants to be on the board, give him a couple seats. Second the cash flow here, once all the socalled trains are going, could be as much as 8 billion. Thats a lot. In the interim, chanos has been right. It has the term energy in it. You see that term energy, you know what that means . Sell. Only baba is a more negative thing to have in your title. Imagine if baba went into the energy business, you would have a double short. Youre all over them. Energy, if you get its radioactive, energy. The last few weeks ive been trying to articulate this this thing that will happen. Thing. Which is that the bank also sta banks will start cracking down on some of the energy guys. I talked about it last week. The journal today did a big story on it. In october the banks will be looking at their lines of credit to many of the energy companies, starting to potentially pull back reviewing them from the capital consideration point of view. The banks are in a strong position do that now. That will bring another potential wave of not necessarily defaults, but restructurings, forced mma, the journal reporting it today. Interesting quote from the vice chairman at freeport, a stock we talk about a lot. He says its raining, it will rain for a long time. Were all going to get wet. A few people will drowned. We just have to make it to the other side. Bob dillon fall thesis. I agree with him. One of the things is you have to watch is well be down 500,000 by yearend because of what you mentioned. Which is that if you felt that oil was going up and you wanted to get a Bank Credit Line to expand, no more credit. I think its important. You have to watch a stock that i lost money on, marathon oil. Mro. They cannot cover things without making sales. Remember, theres a great slit up, marathon oil refining. Refining was the slow growth business. Enp was the fast growth. Watch mro as the point of pain because they are the most exposed now that the chesapeakes of the world chesapeake keeping the wrong asset. Journal looks at this and cites a citi report where they argue bargaining basis could be cut by 15 as the credit runs out on some drillers. Even though halliburton is doing frac now, pay later, the banks dont want to give these guys more money. This is going on right now. Im hearing it from bankers, theyre trying to understand what the landscape will look like. If youre one of these companies, you know its coming, so you will either sell assets and or engage in some sort of merger discussions if you have to as a last resort instead of worry being potential default coming down the road. I watch the preferreds, preferreds giving you the signal you need. A lot of the common stocks are hostage to the various etfs, as so many other groups are. This is a group thats not done going down. I dont buy the goldman 20 thesis because well stop producing well jusp producing as much as we can because of what you mentioned. When we come back, well get cramers mad dash and count down to the opening bell. More squawk on the street in a minute. Its more than a network and the cloud. Its reliable uptime. And multilayered security. Its how you stay connected to each other and to your customers. 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One of my favs. They have Proof Positive in schizophrenia. They had remarkable results. Literally on the hardest to treat schizophrenia. This is marijuana that is legal. Its a class one felony to do it in this country. This is a greatibritish company. If you get offline with doctors, theyre afraid to prescribe marijuana. Some of it is laced with ketamine. This is a standard pill. This will be the talk of the psychiatric profession instantly because of how difficult it is to beat schizophrenia. Youve been on the stock for quite some time. Positive throughout. I talked to the medical profession about it chronic diseases, chronic are all reacting to this thing. This is not something it started with epilepsy in kids. Horrible. Schizophrenics dont know theyre not cured. Its a terrible disease. This has got dramatic results verses what we have on the market. Theres a small sample, phase two. But very hopeful for people. Im not going to say its not. Its big. Lets go to kimberly clark. Typically whats happened when you get a high quality consumer starks that are down 10 from the high with the 3. 3, you buy them. Now, this is a rate sensitive stock. Why . If the fed raises rates, a lot feel they will get out of the Consumer Products story. This is your what to watch. Get out of them because their dividend yields a lot of people are long these, short treasuries. That will be a painful trade algorithmically. 25 basis points will bring about that change . I dont want to go into the m mumbo jumbo of it, but lets watch this closely. Well watch a lot of other things closely. We have the opening bell coming up. Four minutes from now. Stay with us. Good. Very good. You see something moving off the shelves and your first thought is to investigate the company. You are type e. Yes, Investment Opportunities can be anywhere. Or not. But you know the difference. E trades bar code scanner. Shorten the distance between intuition and action. E trade opportunity is everywhere. Squawk on the street live from the Financial Capital of the world. The opening bell in about 60 seconds. Were getting some macro data. Retail sales a slight miss on the headline number. Industrial production a bigger miss. Empire was a dramatic miss down almost 15. The estimate downton abbedown. What is the urgency of tightening. If we were at 2 fed funds rate, we would be cutting. This industrial output is daunting. And this is the strong dollar. This is the strong dollar. Trade partners. I see i believe were peak housing. Auto production down 6. 4. It was up 10 in july. A volatile series. I prefer auto sales in europe. Dramatic increase in auto sales in europe. 11. 5 . The number there, i was looking for 4 to 5 auto sales max. I was bullish. Europe can save the United States. At the big board, arrowshar s arrowshares. And over at the nasdaq, danske bank doing the honors. Were getting headlines out of reuters the that deutsche is looking at job cuts. I saw that. I like this new fella at credit suisse. Goldman says buy to strong buy for credit suisse. A lot of