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tv   Mad Money  CNBC  August 23, 2019 6:00pm-7:00pm EDT

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re comfortable. i could be up for that. that's taking options trading from wall st. to main st. hey guys, wanna play some pool? eh, i'm not really a pool guy. what's the hesitation? it's just complicated. step-by-step options trading support from td ameritrade jim cramer is on assignment tonight because of the big market drop. markets in turmoil stocks getting hammered as the president's tweets on the fed and china send investors running for cover. the dow closing down more than 600 points more than 90% of t 95% of the s0 fell the carnage on wall street started just before 11:00 a.m. when the president tweeted
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american companies should move production out of china and back to the u.s all of this with the eyes of the world on jay powell in wyoming steve liesman has been talking with the most powerful central bankers and will join us in a minute but to e lolon where the president lunaunched a tweet storm. >> on september 1st, the chinese imports supposed to be taxed at 10% will be hit with a 15% tariff on october 1st, the tariffs on $250 billion in chinese goods that were already in place will go from 25 to 30%. and then on december 15th, all of the products that we import from china will start being tariffed the rate will be 15% instead of 10%. in the tweet storm, trump said that china should not have issued retaliation tariffs $75 billion of goods and called
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the move politically motivated we know trump was huddling earlier today with the top trade and economic advisors how to respond to beijing's move. they were all there and just before or just as that meeting was happening, the president went on a separate tweet storm ordering our great american companies to immediately start looking for an alternative to china including bringing companies home and making products in the u.s. the white house is yet to elaborate what if any authority the president has to make that happen but business groups are already on red alert amid this trade war whiplash the business round table put out this statement, quote, the continued escalation trade despite with schina will warm u.s. workers and consumers it was echoed by the farm burro all called for both countries to get back to the negotiating table and settle this trade wore as of last night, officials from beijing were still scheduled to come to washington next month
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for the next round of trade talks but that was nearly 24 hours ago and we will see what the next 24 hours will bring back to you. >> thank you, how is this likely to affect the market. >> the reaction was extensive and comprehensive. it wasn't the market saying let's find the companies affected by these specific tariff items, it was unspecific escalation in the context of a market bracing for some kind of global slowdown, already kind of in a risk off mode and that's where it left us with these losses today. in other words, we traded down in stocks to the bottom end of the range weaver been in for august we've been in a pull back for a month now since the record highs of late july and i think this was more of an exacerbating factor than shockable from the blue i think the risk off tone is
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what stood out bond yields going to the lowest for the month and stocks following them down. >> now let's go to jackson hole, wyoming and more what we head from the federal reserve today, steve? >> reporter: yeah, sarah, the topic of the conference is the challenges of monetary policy and judging from comments around the world the answer is trade. trade uncertainty came from almost every central banker we talked to. we just got -- we just did an interview with mark carney, the governor bank of england and here is what he said where the trade war with u.s. and china is affecting the whole world. >> what's happening is the direct effects from the china and u.s. are getting up over the course of a two three-year period is 1% point lower if they
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remain in place. there is the direct effect globally is a confidenidence ef not just in the u.s. and china but across the supply chain. >> we did several interviews with tfederal reserve officials and were divided where to go with interest rates given the economic uncertainty and favorable u.s. economic backdrop. >> i didn't think the cut was appropriate necessarily but i went along with it to get back to neutral but i'm on hold. my forecast is a hold. >> my sense is we added accommodation and it wasn't required in my view. i think we're in a good place relative to the mandates that we're asked to achieve. >> i was in favor of the rate cut in july. i felt it was appropriate to make an adjustment i like to avoid having to take further action but i think i'll have an open mind about taking action. >> i saw the arguments on both side they were good arguments
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i supported leaving rates the same, you know, and looking for more data and letting things play out longer. i haven't made up my mind yet. >> markets only expecting about 1% or 1.1% inflation, so we're supposed to hit our inflation target that's one reason i argued we should get lower here. >> the economy is in a good place now. markets go up and down so we try to filter through the day to day but the global outlook has worsens since the july meeting the global economy is slowing and just inflationary pressures. we're looking at the trend in the data to make our decisions >> those interviews came before the new tweet storm that was out from the president and the new escalation in trade wars from the president so i don't know, sarah, maybe now they would be more inclined to cut rates but a big question hangs over, is monitory policy up to the task of offsetting the effects of the
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trade war, sarah >> reading through the fed speak you've had in the last 48 hours, how do you see the path of policy shaping up for the rest of the year? >> i think it's meeting to meeting. i think taking richard and vice chairman at his word is the best way to put it. i don't think they are on a preprogrammed plan of rate cuts. they will take a look. they may cut again in october and take a look. the market's price for three, just barely for three well priced in. one over the 50% probability line for december that may be a little aggressive but hey, if this trade war ends up having the kinds of negative economic effects some people forecast, those rate cuts may be part of it and there may be more after that, sarah. >> steve lee in jackson hole the market was looking for some aggressive monitory easing they want to see more rate cuts but took it in stride some of
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the key fed members seem of t optimistic about the u.s. economy and didn't need to promise more rate cuts. >> pointing out domestic data isn't giving need for feeling as if there is a sense of urgency about stimulus i think that, you know, as they were speaking, literally, the markets were reacting to the trade developments you have to wonder if the market is going to assume they can extrapolate from here the fed is maybe going to lean in a more easy direction than they are transmitting now it a dangerous assumption. >> it doesn't matter what the fed presidents are saying, they are late what is happening on trade is more of what they will do on policy. >> the market is seemingly betting on something like that, yeah. >> major averages did tank on the trade developments with the dow and s&p dropping more than 2% josh lipton is covering the sector watching the stocks with the most exposure to china, to
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sem -- seema. >> stock futures rose on encouraging comments from fed officials but before 8:00 a.m. eastern, china announced the firing of the latest china trade war. that sparked a sell off at 10:00 a.m. lifted off the lows when chair powell would be ready to about as needed to sustain the economy but an hour later, president trump launched a string of tweets taking aim at powell and china and escalate the trade conflict that sent the market smiling the dow fell 745 points, that is breaking below the 200 day moving average for market watchers the key concern among traders, the additional tariffs will delay business spending and hurt the american consumer, which so far held up relatively well as we've seen in recent earnings reports from target and gab. t retail was expectations and banks slumped and fears of a yield curve
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flared up again and tech and industrial industrials. specific names, fedex and ups pushed further into correction territory putting this into perspective. with today's losses and major averages are 6% away from record highs. not the way many investors wanted to start the weekend but you can bet traders will keep a close eye on twitter. >> seema, thank you. the nasdaq dropping 3% and semi conductors were the overall hardest hit down 4%. josh lipton is live tonight in san francisco. josh >> so sarah, tech tanked today one of the worst performing sectors in the market. the tech sector we know it is climbing 20% china is an important market and a key part of their supply chain.
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so look at the hood of the tech sector and apple got hit in today's trade closing down more than 4%. china an important market for the iphone maker it's where many products are assembled. remember, president trump praising apple ceo tim cook this week calling him a great executive. also in the red, you mentioned the semis. the etf that tracks the chips finishing down 5%. its worse day in two weeks amd, nvidia and broadcom hit hea hard he acknowledges the risks but bets they can take share from intel in the data center for a tech investor, it was not easy to find green on the screen today but one notable exception here, selales force ending the a higher sarah, back to you.
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>> we'll turn to the u.s. stocks with the most exposure to china. >> let's start with cnbc's trade. it tracks the most revenue exposure and imports from china. we heard josh lipton talk about the impact to apple but 15 to 20% of best buy sells are according to apple essentially apple's problems are best buys problems, best buy saw a plunge finishing 3.76% and tiffany has 16% revenue exposure also finishing lower, 4.7% the company reports earnings next week so we'll hear more then but we know last quarter they pointed to weak tourism from the chinese as a reason for disappointing sales and caterpillar seeing shares tank finishing down 3.25% the heavy equipment maker gets 5 to 10% total sales if you're looking for places to
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hide, there are companies with zero revenue exposure and generate 100% of the sales in the united states. there are a number of consumer staples and utility stocks, also retailers like dollar general and several health care names including cbs and anthem back to you. >> thank you the president argues something had to be done to stop china's aggressive and unfair behavior on the global trade front but is this the right path ron and steve are with us tonight on opposite ends of this debate mike with us, as well. steve, you had defended the president's aggressive and harsh stance on china. how much pain are you willing to see the market take to get what he thinks is going to be a trade deal. >> what's the alternative? we tried the alternative pressures. republican presidents tried the alternatives we tried democratic presidents,
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they have not worked he may not say it in a pretty way. nobody agrees with the way he worded the tweet about powell. he said companies should look for an alternative he didn't say everybody get out. he said look for alternatives. >> is it working >> clearly not i don't think we're seeing any progress being made at the negotiating table or financial markets. the president on day one could have joined the chance transpacc partnership and could have brought it in front of the world trade organization and insist china play by the rules within the constructs and had allies with him at the table that would suggest the entire western world as opposed to the united states wanted to see change that would have more of an impact with the chinese and if you understand bargaining in asia certainly doing it in the public format like this and the way the president does it also causes them to dig their heels
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in even more when it comes to negotiating thorn topics like these. the u.s. has a lot of work to do to get china to behave more in line with world trade. with respects to comments about jay powell, those were completely unspooled and in fact, quite frankly his attacks on the fed are entirely unwarranted. the fed has done the right thing thus far it cut rates in july it's watching data where we are as of tonight given the president's raising of tariffs means we'll have a recession in six months. >> ron, bipartisan, everyone disagree with tpp. >> that's not true at all. >> every democrat, every democrat and republican didn't want to go tpp we're rewriting that no one liked that. >> i don't know where that came from the chance paciftrans pacific p-
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>> all three democratic candidates in 2016 were against t.p.p. >> president obama would have signed it but the republican senate didn't block it from being past. >> steve is right, it became a populist issue joe biden said he wouldn't sign it. >> they are wrong, also. that was a very good piece of trade legislation and president obama could have gotten it signed. >> what does that do for man manufacturing in the united states when we start to have these multi lateral debates on trade? that's why you need these by lateral debates because we're fighting for us, too. >> there is a big difference, steve, between a by lateral debate and a twitter fight. >> i started off saying he doesn't do it properly he doesn't do it properly. nobody agrees. his backers would say he doesn't say it properly but what should we do? should we say at this point, we cave to china and there is no way to defend trade for the united states? >> absolutely not. the way in which this is going
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now and clearly as of this afternoon, late this afternoon, we are headed towards a position in which both sides will be dug in for quite a long time, even secretary of state pompeo just yesterday or day before suggested this may very well last through the 2020 elections. if that's the case we are virtually guaranteed a recession. i don't think it helps the president's election chance that much not that that's a concern of mine. there are a wide variety of opportunities and options the president had at his disposal and using a blunt force as he has thus far is wildly counterproductive. >> i think one thing that steve and ron can agree on, mike, this is going to be prolonged we have only seen a dramatic escalation today between the u.s. and china how should investors think about what it's going to mean for earnings, what it's going to mean for the economy and what to do with short-term volatility bumps. this is the third day in august we have a decline.
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>> the implications for growth around the world and the u.s. growth path is primary so that's what matters most. i also think in a bigger picture way, the president has initiated this campaign. he says chinese have been stealing $500 billion from us every year that has nothing to do with int intellectual property. >> i get it. he came into office treating it as an urgent emergency where this generation of ceo's came into their position and businesses for 20 years say here is our china strategy. we have inner related businesses and capital flows. >> the u.s. economy was doing well -- >> exactly. >> doing better than the rest of the world and juiced it with the corporate tax cut so he had leverage to wage the war. >> you have to recognize in president trump's eyes, like peter navarro and others, the
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president has been preoccupied with bilateral trade deficits. it's almost meaning wills. wipe it away and you'll sell more energy products the issue is whether or not as some advisors believe, the china is an economic and military threat, that might be over blown even though we have to compete with that in high technology. >> thank you both. a lot more ahead on the cnbc special report, markets in tour mile another big part of president trump's swetweet storm. we'll look at the retailers vulnerable to an escalating trade war. before the break some of today's named utilities
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taking big hits. we'll be right back. from the couldn't be prouders
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click, call or visit a store today. health care has been one of the worst performing sectors so far this year and the group was hit hard again in today's sell off with the drug makers leading the decline. search for and refuse, that was what president trump tweeted to ups, fedex, amazon and the post
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office on potential fentanyl deliveries from china. meg terrell is tracking this and joins us with more. >> fenlt unttanyl is a mayor cj contribut contributor, it is legit in some medicines but some shipped into the country from china the cdc says fentanyl and other opioids are responsible for the third waves of deaths. it started with prescription drugs and turned to heroin and now much more potent illegal drugs. fentanyl is 50 to 100 times strong stronger -- the fda and others elicit shippers are finding ways to get it into the country scott tells me that's for several reasons because fentanyl is so potent, not much is needed shippers send it in small quantities to evade detection or
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packages that make it hard for dogs to sniff. they can shift through drop points or overwhelm the system by sending thousands of packages he expanded the number of people designated to inspect those packages but "the washington post" pointed out today customs and border protection has been dealing with the shortage of officers and trained dogs. a report last year from the senator that said the agency had 4,000 fewer officers than needed trump also focused in his tweets on fedex and ups fedex has extensive pleasures in place to prevent the use for illegal purposes and follows the laws and regulations everywhere it does business ups said it follows all laws and works closely with regulatory authorities to monitor for the substances they say it killed more than 28,000 people in the u.s. in 2017 guys, back to you. >> meg terrell, thank you. the always trade war vulnerable retail sector falling
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two and three quarters percent today. let's get to courtney regan live with more on the damage, courtney >> of course, for retail china is a very important market for several reasons. first of all, it's the number one country of manufacturing origin for the clothing and shoes we buy in this country with the growing middle class it's important for u.s. brands and retailers to sell into that market so when you put it together, tariffs on imports from china and retaliation imports on goods that are sold to chinese consumers are double painful for some retailers and brands so far in 2019, tariffs have been mentioned on 166 times on different retailers and brands earnings calls but today, a lot of those retailers are letting the trade groups do the talking and responding for them so the national retail federation just putting out a statement here talking about the president
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hiking those tariff rates after the close and the statements say it's impossible for businesses to plan for the future in this type of environment. administration's approach clearly isn't working and the answer isn't more taxes on american businesses and consumers, where does this end earlier statement from the group said in part quote retailers had been diversifying supply chains but finding alternate sources is costly and a process that can take years our presence in china allows us to reach chinese customers and develop overseas markets retailers that have a descent percentage of manufacturing were under pressure today, madden, g 3, american eagle and gap. others were under pressure in trade because of the sales that they do in mainland china. names like nike and tiffany, 16% of their sales are generated in china with chinese consumers
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15% for coach and kate spade 13% for estee lauder. >> courtney regan, thank you. the fast money team shows us they are treating today's bill fall and uncertainty ahead and also ahead, how smaller individual businesses are preparing to ride out the trade war storm and core neiarnage onl street the real estate investment trust hitting a 52-week high and oflling along with the rest the market the cnbc special market in turmoil will be back in two minutes.
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the energy sector the worst performer. here is a look at the biggest decliners among the group and energy hit hard as much as more than 6% lower.
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welcome back to the special report, markets in turmoil the fast money team making a lot of decisions as the market fell. melissa lee, take it away. >> traders on desk tonight, stocks of course getting hit hard today as trade turmoil slams them how should you position yourself month? b.k., what do you do >> be cautious we talk about buying protection making -- when the sun is shini shining. you can still buy protection what is going to have exposure not just multi national. when you think about okay, maybe caterpillar will get hit what about the company that services caterpillar here in the u.s. at this point you're in the deep end of the pool and caution should be the number one thing. >> mike. >> you know, i think one of the things we'll be talking about later is well, people have been looking to a lot of safe havens and things like staples, these
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theoretically are places to hide out in an environment like this. i would issue caution because evaluations there to me are looking pretty heavy if you look at something like priced earnings, it is a ten-year high but maybe not that high and you look at priced sales like it's near the highs of the last ten years. if you take a look at the fact some companies added leverage to the balance sheet and look at them versus their enterprise value, they look extremely expensive to me. what you could see is better operating efficiency, better margins. they have been keeping the earnings in a good place i think that what has seemed safe might not necessarily be going forward. the other thing i would say, when everything looks grim, it might be an opportunity to use relatively cheap options i still think options are cheap compared to how much things are moving around. you might think about making some even call it a bear market rally bets but buying the spreads. >> how do you factor in valuation at this point when there are so many unknowns out
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there? >> right well it's really hard. i mean, the blessing and the curse of being a long, always positioned long, right so i'm never going to take the position, wow, this is a really volatile place to be in the world, the any market is really volatile i want to be out i don't do that. i can't do that. so i like to be in things i hope directly aren't in the cross hairs of what b.k. is talking about. the semi conductor index those are in the cross hairs i'll step back i have u.s. retail that's in the cross hairs of oth other woes today i look at being in companies with good balance sheets that can survive and a lot of companies had years to get balance sheets in good shape something like a ge is going to be a little more risky, right than an industrial that has a very good balance sheet like i have united rentals, very good balance sheet but this is not a
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great environment for them at the moment. >> outside of defense of stocks, defensive asset classes so do you see long bonds or gold >> certainly gold reacted well today based on the trump tariff tweet so i think that's probably number one thing you want to add to the portfolio for a longer term perspective, you would want to add gold and bit coin bonds, i'm a little nervous about bonds primarily because they move so much. right? it's really hard for me to go uber bullish the fed may cut. other people will come in and buy bonds but they are pretty expensive, as well bonds square me a bit. >> that does it for us here on "fast money. back over to you guys. >> our thank s to the "fast money" team. the next turn in the trade war saga and another vulnerable sector the industrials, including stocks like caterpillar, 3 m and united technologies. a look at the biggesdeint clers
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in the s&p 500 led by l brands and halls burro.
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welcome back to a cnbc special report let's recap the wild action on wall street that pushed the major averages into negative territory for the fourth straight week. the dow 2.37%. it was down 745 points at the lows the s&p 500 falling about 75 points, nearly 2.6% and the tech heavy nasdaq was the biggest loser of all down 3% for the day. let's drill down on one of the hardest hit sectors in today's sell off, the industrials like caterpillar and john deere. >> it's one of the most globally exposed sectors. they are pressured by tariffs but the sec tar is lion tar is steel, copper and oil continue to decline analysts say caterpillar generates 20% of revenue from the resource business, which is comprised largely of mining.
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caterpillar among other industry jel -- industrials, in have response to the tariffs, tariffs are simply a tax cummins said and make both countriesless competitive and it will be passed down to the american and chinese consumers. the escalation and rhetoric are harmful. one pocket of strength within the industrials, aerospace and defense as they have more money to raise the budgets lockheed martin hitting a down today. sarah? >> thank you, seema. for more on today's sell off, let's bring in president of well wells fargo institute and victoria fernandez joins us by phone. steve grasso with us you spent the day on client
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calls, on strategists calls, what did you tell your clients to do? >> i think you got to look in this environment for stable growth where you can find it, defensive yield and defensive quality. right? really kind of sure things up. we finish the day on some key levels, the 28, 22 level on the s&p is the august 5th lows, below that the 200-day moving average. the vix is 200 and change. i think it's time to pull in the reigns and be a little more defensive. sit on your cash and be patient putting it to work because we don't know where it's coming, volatility will be. >> give us an example what defensive quality means to you >> you can still own things like utilities here and actually, people don't realize this but one of the highest quality sector ratings is technology you got solid top line growth, you got most cash on the balance sheet. you got highest buy back and dividend ratios. >> one of the hardest hit today.
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>> it is one of the hardest hit. you have to be careful if you can ride through the short term volatility, there is good quality there. >> victoria, what were you doing today? >> buying? >> we did buy a little bit we bought lenar. we're having customers look through this volatilitvolatility we think with the lower rates there on the housing market there, there is upside potential. we went ahead and made a play there. it's really difficult because we don't want to change strategy based on headline. that's not a good strategy to follow we want our clients to look long term and reach the financial goals so even though we're not going completely defensive, we're saying look at names in the staples, we added health care sectors and try to find ways to take advantage of some of the volatility, whether that's through options or dividend payers.
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>> lenar, one of your favorite names. >> the space got upgraded today and lenar, the price target was raised to about 40% above last sell as we said, the last time we decemb discussed it, $50 is the barometer. keep that in mind. don't be a hero. i'm long lenar i believe in the story tremendous upside in that one specifically. >> how have you been looking at the sector performance and out performance and what works well in this volatile environment >> it's been what darrell is saying people have been going towards better balance sheets, technology a real winner what is interesting today and i talked about the sell off, the market was caught off balance. microsoft was down 3.2% today. that's great performer in the greatest group in technology, which is software. not really a china play. so in other words there was a general selling of things that were up a lot and over owned or heavily owned stocks that's okay.
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that means that basically, people were just taking some off the table as opposed to isolating which companies will be hit the hardest i do think with bond yields, still at their lows, it's going to be tough for stocks to start working better or financials but today i think it's also important darrell pointed out, we're within the august range. the s&p 500 is down 4% this month. it's down 5.5% we're not yet back to last week's lows. i don't think the market -- >> it is a little constructive to darrell's point we did defend last week's low because they could have cut through them. they could have went down to the 200-day moving average, which is what the bears probably thought they would do today. they didn't do that. that is constructive for next week. >> darrell kronk, victoria, all of you thank you. small business slamming the president's action on trade. the harsh comments next and how investors at home should be thinking about portfolios when
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the market tanks and the one thing you should never do. first some of the biggest losers today in the financials, american express, goldman sachs, jp morgan all getting hit hard the cnbc special report, i like to make my life e marks in turmoil bac yes! that's why i wear skechers slip-ons. they're effortless. just slip them right on and off. skechers slip-ons, with air-cooled memory foam.
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welcome back stocks getting hit hard today. food stocks able to hold up but closed mostly lower. not just the major u.s. multi nationals feeling the pain now kate rogers is reporting how small businesses are responding to today's escalation in the trade war, kate? >> hi, sarah small business groups weighing in on president trump's escalation the small business out with a harsh statement saying in part the trade war with china was slowly chipping away at small business confidence and these unprecedented actions tweeted by president trump if followed through on will only accelerate the downturn in business investment and confidence. it will then hurt consumer sentiment. we've seen the markets in small business confidence rebound from this type of rhetoric before but words have consequences. china continues to goose the
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president with retall tory actions and words and sometimes their park is stronger than the bite a more sober response that china would ultimately show who is in charge meanwhile, the national federation of independent business striking a different tone today saying as we saw in last week's nfib small business index, the small business economy is remaining strong throughout changes about a third of small business owners said the changes will negatively fae lly affect theirs and could expand the problem as policy makers return to d.c. from august recess, it is crucial they consider the consequences trade policy can have on these small business economy. it's note worthy our own cnbc and survey a monkey show it's tied for a low score because one of third of businesses believe trade policy will have a negative impact on business in the next year, what's more, a quarter of small business owners say they have already been negatively impacted by u.s. trade policy over the last year,
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guys back over to you. >> kate rogers, thank you. cnbc has a financial wellness and education initiative called invest in you, ready, set, grow as part of our partnership with the app called acorns we'll turn to our senior professional sharon epperson on how to recession proof your life what should we do first? >> not to panic. you need to breathe. you need to focus on what you can control and the first thing you should take a hard look at is what money you have coming in your job security will be key and here is where you need to start. make sure that you are stepping up your performance first thing monday morning be a critical player for a critical issue that the company is trying to solve update your resume, your linkedin profile you should always be networking. >> sharon, what about suring up your own finances, maybe building a savings cushion. >> a lot of financial experts say should be three to six
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months worth of your savings in an emergency fund but keep in mind, trying to find a new job can take longer that that if something happens and you do become unemployed that rainy day fund may need to be six to 12-month expenses. some say consider taking out a home equity line of credit so that you have more of a cushion, not that you will use the credit but to have it and qualify for it now before things get tight. >> sharon, is now the time to be more cautious in your spending >> it absolutely is time to be more cautious. look at any debt and take any extra money once you review the budget to cut out and put some of the extra money toward paying off debt use cash, use your debit card instead of your credit card. these are things that you should be doing all the time but now when people are maybe a little worried, they will be focused on this and ready to take some action to protect their income and portfolios. >> thank you, sharon epperson.
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>> sure. >> for more, go to in you nbc universal and comcast ventures are investors in akrons the blue chip names that drag the index lower and the key events next week that could shed light on the health of the american consumer. here is a look how the airline stocks tded ratoday. stay with us, special repaort
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markets in turmoil will be right back
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welcome back to a cnbc special report, markets in tour mi -- turmoil. boeing the only dow stock to close in positive territory. look at the biggest laggers. apple, intel, american express, ibm with declines of more than 3.5% each. >> the nasdaq 100 index seeing big declines dropping more than 3% biggest losers there were hasbro, microchip technologies and broadcom. up next, we'll look ahead to the next market catalyst as a number of key companies gear up for earnings here say check how media stocks faired faired the special report
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welcome back, consumer stocks, nordstrom and tiffany the biggest decliners. tiffany is one of several to report earnings next week. best buy, dollar general will give us tips on the health of the american consumer. box, dell, workday and auto desk campbell soup, also set to report results so how should investors be positions themselves to best protect their portfolio into the new week we've got steve back with us what will you watch next week? >> have to watch from 50,000 up and the 200-day moving average because to mike's point everything trades with a blanket. it's all going to trade -- if we trade lower and watch the futures on sunday night in the
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evening, and they are cracking and we come in, we want them to be weak before they open at 9:30 in the morning on monday you want them to be weak you don't want to have a head fake pop before the opening and get your head knocked off. you want them to be weak and then open strong. >> to the weakness >> buy them after the opening in new york if they hold the 200-day moving average if they don't hold the 200-moving day average, it could get sloppy on monday morning trading. you don't have to be a hero. we're in the last week of summer there is a lot of people still off. eveni everyone is watching the overall market but play it easy but if you want to dabble and buy the dip, buy a percentage of it. you don't have to go all in monday morning. >> ron, you have g 7 happening what else will you be watching on the front for clues about what happens next. >> well, what's next the unemployment report on friday the federal reserve is talking about the strength in employment
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and consumer spending. that's a pivotal number to determine whether the fed moves forward come early september, mid september. that's going to be key we're not going to be able to get away from tweets anything in a vacuum as mr. grasso is suggesting. >> i'll take his money, ron. >> the chairman of the new york stock exchange in case anybody was wondering. he was suggesting in a thin market environment, news can move things as we saw today in very dramatic ways it will get thinner for the next two weeks. most folks don't come back after labor day for a full force on wall street. g 7 results, tweets, more comments from china, i would be watching hong kong over this weekend, as well, there are more protests expected. that could have a ripple effect here at home. >> mike, you always put a sell off like this in perspective how much damage was done and what will you be looking for
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>> there hasn't been particularly much damage to what we experience in august. we had 6.5% pull back. we're up trend we haven't really lost that up trend as steve is talking about the 200-day average. the market is where it was which is benefitting from low bond yields because it makes equity valuations okay but suffering from the fact we're in a slowdown and don't know how much we're three weeks away probably, three or four weeks from a next fed rate cut we just don't know if the market is going to automatically take it badly. >> do earning expectations come down >> i think the new round is another excuse for expectations to come down into the first quarter. >> remember, the -- because you want a lower benchmark you want a lower hurdle to cross over as you're going into that earnings to the next segment of earnings the other thing is look at 50 basis points back in the conversation whether or not it's probable is another thing but at least you get 25 basis points, which wasn't guaranteed before.
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>> so continue to focus on the fed, the presidential twitter account and the levs th that does it. thank you for the special report full coveragcoins e ntueonline at and all weekend long stay this is "shark tank." ♪ tuned now for "shark tank."e nw recreational sport. radosta: hey, sharks. my name is john anthony radosta, and i'm the chief executive officer at advanced sports technology. i'm here seeking $160,000 for a 10% equity stake in my corporation. sharks, advanced sports technology


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