"worldwide exchange" on cnbc i'm morgan brennan in for sara eisen. >> i'm dominic chu in for wilfred frost. let's look at what's happening for the markets. it's a new trading month, futures for now are showing signs of stability the s&p is now improving up by 10 points. it looks like we could start as long as futures trade where they are now going into the opening bell the dow jones up by 124 points the nasdaq up by 35 as well. as for what's happening with the broader markets, check out the oil trade. it's one we've been focusing on for a long time. wti crude above $50 per barrel $50.32 ice brent cruise, that world benchmark, $52.77, up by 0.1%. as for the currency side of things, that may be showing some signs of what's happening elsewhere. the you'euro now is falling aga the dollar 1.182. dollar/yen 110.38. and pound dollar, 1.3237 for right now some higher oil prices despite we're seeing the stronger dollar against some of these currencies. >> looking at asian equities now. it was a mixed session -- excuse me, stock there's were higher. the japanese nikkei closing the day up 0.3%. the h

, "nightly business report", chicago. ki of experiment is fly iing high. >> i'm morgan brennan in new mexico. holloman air force base is home to the 49th wing and where most are trained, but something else is here right now as well and that's something that could help transform the way military equipment is acquired. that's coming up next on "nightly business re >>> consumer report ss pulling its recommendation on four microsoft laptops. this after one survey found users were complaining about problems with those devices. based on the results, the magazine ple dikted that one quarter of microsoft's laptops and tablets would have reliability problems in the first two years of ownership. >>> the air force needs new fighter jets, but they're expensive. so, it's doing something unusual that could give smaller contractors a chance to build a cheaper plane. morgan bren p reports from holloman air force base in new >> in the middle of the desert, fighter pilots have been conduct testing in a new kind of experiment. >> we took a problem we saw or area we thought we wanted to experiment and engaged i

more efficiently. morgan brennan takes a look at the trucking industry's uberization in the industry. >> reporter: william lugo has been hauling freight with his own semi for 24 years. six months ago he started to use an app on his smartphone to find shipments needed on a truck. >> a lot of down time before this. now technology makes it a lot easier for loading, unloading. >> reporter: call it the uberization of trucking. a technological shift two dozen years in the making that's shaking up the trucking industry. using apps running on the cloud powered by algorithms published by a shipper at a reasonable rate. this was used by convoy. the app connected lugo with anheuser busch who needed to move 2,000 cases of budweiser to its distribution building in the bronx. they say this is making things more efficient. >> we can learn more about our business. for example, we can see the truck as it evolves and delivers along a map along its route to delivery. >> reporter: this represents a big change in how truckers are brokered, a business that has always relied on people, relationshi

broader market sells off. the very scenario that unfolded this week. i'm morgan brennan. >> shares of j.c. penny hit an all time low. they lost more thmoney than fea revive sales just don't seem to be sticking. the company reported a decline this a key sales metric, making it the latest department store chain to announce dismal results. the stock took a beating and fell 16%. courtney reagan has more. >> they aren't inspiring any more hope this week. going out of business sales at nearly 130 store, plus higher levels of shoplifting and damaged merchandise led to a bigger than expected loss for the retailer, even with sales in nearly all categories improving. on the flip side, the liquidation sales are helping them clear merchandise going into the most important part of the year. >> they do go into the second half of the year with a much cleaner slate. they continue to get a nice contribution from alliances. the ceo mentioned on the call they've started august strong in terms of their back to school selling season and so still a hurdl remain. up. but we would say it was a bit of a cleaner r

: i'm morgan brennan in windsor, connecticut. take a look weather analytics, social media fees. big data. some of the tools that insurers like travelers are using to begin assessing damage from hurricane harvey. before adjusters are even on the ground. that story is coming up in "nightly business report." >>> we're starting to see harvey's exposure for mortgage giants fannie mae and freddie mac. fanmy they says there were more than 46,000 fans whose mortgages in the initial impact area with about $5 billion of unpaid balances. meanwhile, freddie mac estimates it has 167,000 mortgages in the 18 counties affected so far but says that number could grow. >>> insurance stocks were hit today as investo wait on the initial estimates of damage from harvey but the insurers aren't sitting idly by. they are using state of the art technology to get a head start on assessing the damage. mo takes us to travelers catastrophe center in windsor, connecticut. >> reporter: as harvey continues to linger over the texas coast, insurers are using technology to model the damage. as they wait out the storm

insurance impact of this massive storm morgan brennan live at the travelers insurance national catastrophe center in connecticut with more. morgan >> reporter: good morning, guys, it is too early to know what the damage and cost will be, probably still weeks away from final estimates, but early risk modeling estimates that were released before the hurricane made landfall as category four, already anticipating billions of dollars. some are saying this will be a top ten hurricane in terms of cost, tens of billions of dollars. to put it in perspective, costliest hurricane from insurance loss standpoint, katrina, 2005, almost $50 billion. followed by andrew, $24 billion, adjusted for inflation, superstorm sandy, $20 billion. texas specifically, this hurricane compared to 2008 ike and 2005 rita. in terms of property coverage in the state, this is according to insurance information institute, names to look at all state, state farm, farmers among the biggest underwriters of homeowners, travelers and aig also have consumers, but some of the biggest underwriters of commercial, covering everything f

morgan brennan in for sara eisen >> great to have you with us let's get straight to the latest on harvey in a few moments, first a check of global markets. in an extraordinary turnaround. yesterday at this time, we saw dow futures down 150 points, p in the end they ended up 56 points higher. that turnaround coming a half hour after the open in terms of the most pronounced fashion, consumer confidence came in, but the main reason is that that realization that the north korean missile test did not affect things much we got that turnaround and it's continuing today the dow higher by 45 points. the nasdaq by 15 ten-year treasury note fell below 2.1% we're back above 2.1, but the net fall in yields yesterday did weigh on bank stocks >> turning to the rest of the world, that similar dynamic we saw playing out in u.s. equitie yesterday playing out today in the asian markets which closed mostly higher. the nikkei up 0.8% the hang seng, that was up more than 1%. the shanghai composite closing about flat the koz spi up 0.3%. all of these indexes are higher on the week and we're 36 hours out

downtown houston and jackie deang lose and morgan brennan looking at the rising cost of harvey she is up in connecticut and angie lassman is tracking the path of the storm. right now, let's see how the markets and your money are doing in reaction with joe kernen. >> yeah, stocks are down the dow, anyway. steady this hour in a narrow range. nasdaq is actually up. apple is among the top leaders announcing a product event september 12th where it is suspected to unveil its latest iphone the big moves happening in energy following harvey's destruction. gasoline prices surging as refineries shut down for the duration of the storm, at least. let's get you caught up on the latest of harvey governor greg abbott announcing he has activated the entire texas national guard that brings the total number of deployed guardsmen roughly 12,000 12,000 new numbers out show more than 1,600 flights have been canceled because of harvey. as brian mentioned, millions under a flash flood watch. about 300,000 are without power. get back now to brian in galveston. you've been able to guess, brian. a new one from

. morgan brennan explains ho >> the rocket race is ramping up. and for the start ups leading the charge, when it comes to new business ideas, space is the limit. the latest example, vector space systems, which s launched its new rocket from a georgia space pad this week. it was the second test of the 40 foot tall vector r and while it didn't reach orbit, the launch puts the company on track to begin flying tiny satellites to space next year. the ceo and cofounder was a founding member of elon musk's team. he says the goal is to flag year for the staggering low sum of $3 million per launch. >> what you have to be able to do to scale rocket to that kind of flight rate is three things. one, you have to design the smallest and simplest rocket possible, our vector r, then you have to manufacture them like sausage, then learn how to fly them like crazy. t >> they've sold more than 180 so far and has freed -- from venture capital firms. they are targeting the satellite undersiege by some new ones that launch bigger, more valuable payloads less frequently. >> these satellites are being b

feared, they've rallied. a sign perhaps that cross border business will continue to boom. i'm morgan brennan. >> today, the u.s. launched an investigation into china's alleged theft of american intellectual property. the move was widely expected. the it is the administration's first direct measure ae tra pras theft of such property could amount to as much as $600 million. china said it will defend its interests. >>> trade is one of the president's top priorities, bringing jobs back to the u.s. is another and progress was made on that front today. wisconsin's state assen tax bre package that would bring a fox con plant to the state. the bill heads to the wisconsin is that the. fox con, best known for its role in manufacturing the iphones has agreed to build a $10 billion plant in the state, but requires the approval of certain tax incent he'll explain. >>> a rough day and week for shares of major movie theatre chains. today, there are reports that apple and hollywood studios are discussing the possibility of creating a video on demand format that would release films just weeks after t

"power lunch" begins right now. >>> and welcome to "power lunch. i'm morgan brennan stocks are sitting around session lows right now nasdaq, the biggest loser. that is down more than 1%. tech and industrials, the biggest drags today. so check out some of the individual movers. we have got mylan is moving higher it's bucking the trend that company is finalizing a $465 million deal with the justice department to settle claims it overcharged the government for its epipens and alibaba, rallying on its earnings beat. that stock is up 4%. l. brands, plunging to new lows on the back of its weak outlook. and walmart lower, despite beating estimates. that stock is down more than 2%. we are going to have much more on what's going on with that stock, straight up ahead >> morgan, welcome to "power lunch. i'm brian sullivan we begin this hour with breaking news from spain, where a truck rammed into a crowd, one of the main plazas in barcelona it is now officially being called a terror attack let's get to sue herrera with the very latest. sue? >> brian, thank you very much. we know at least one pers

screech] [bell rings] >>> welcome back to "the halftime report. i'm morgan brennan a successful liftoff for elon musk's spacex. this mission is spacex's 12th for nasa to resupply the international space station. they are carrying more than three tons of cargo and science experiments and is expected to hook up to the iss on wednesday. the first stage of the rocket has already landed successfully at cape canaveral. this brings spacex one step closer every successful lunch brings it one step closer to its test flight of the much anticipated falcon heavy, which is expected in november. back over to you. >> morgan, thank you so much morgan brennan with the latest there. great picture. it never gets old seeing pictures like that, does it? >> no. >> has anyone ever seen a launch it's so exciting. >> so unreal. >> private sector doing this, jim, is amazing. that's why musk gets as much gravitas as he does. >> let's talk about earnings jim, you talked about the big box retailers. walmart, target, depot >> i think walmart is so back. no matter what home depot says, the next eight people s

companies and supply lines in texas and beyond. morgan brennan is back at headquarters with more on the ballout. >> reporter: hey, kelly. given the flooding and need for safety freight movement in the gulf has really ground to it a stand still. not surprising kansas city southern is still suspended after a force major was enacted on friday and freezing shipments from mexico berkshire hathaway's bnsf and analysts think volumes will remain impacted because not the networks will take time to get up and running and so much chemical refining and it has been and will be disrupted trucking bouncing back and one of the biggest factors currently affecting trucking is actually rising fuel prices a gallon of diesel is 1 cents higher than it was a week ago on expectations that the supply will be disrupted. that will start to show up in truck rates which are widely expected to rise as the rebuilding effort will boost demands for trucks that are carding supplies into texas. that's the reason you've seen trucks of warner enterprises and schneider national and nyx transportation and swift international

galveston. meanwhile, morgan brennan is live here in the studio. >> i want you to take a look at this this is a google map of the houston area right now you could call this a rough sketch of what the road closures look like in the houston area. all of those red lines and the circle with the little dash through it, these are road closures and basically closed from flooding and other obstructions in the area. now, brian just talked about cars and the rescues happening with cars. this means that trucks are also having a hard time getting in and out of the area. 7% of overall trucking in the u.s. is going to be affected for two weeks, thanks to this storm, and then a month out, it's expected to fall to 2% nationally, which is a significant number for this sector trucking rates are expected to rice due to the spike in long-term demand that will come from the massive rebuilding effort with all of this. that's why the stocks have been trading up if you take a look at warner enterprises, night and swift, in the process of merging, also, schneider national, these names have been trading, for t

off from metlife and began trading on the nasdaq today. cnbc's morgan brennan has been tracking the stock's one-day performance and joins us now doesn't look so hot, morgan. >> yeah. i would agree, sara. a bright red for brighthouse financial, bhf trading down 5.5%, trading at $61 a share one reason for this, unlike its parent company, the spinoff does not pay a dividend meaning forced selling by funds, that has metlife shareholders receive stock in brighthouse now on "squawk box" this morning ceo saying this spinoff creates two very different companies with very different risk profiles as a pure play retail life insurance and annuity businesses, brighthouse is levered to interest rates. asset management and international life insurance is now about 40% of the company's businesses, and in other words brighthouse is high beta likely to appeal to deep value investors and metlife is now a simpler story, less market sentivesity and better cash flow generation and likely accelerated capital return to shareholders few earnings surprises are tied to unexpected costs from the spinoff which

. >> he is frustrated. >> all righty. >> thanks for joining us, morgan brennan. >> come back any time, all right? >> we can say "closing bell" starts right now >>> hi, everybody. welcome to "closing bell." i'm kelly evans at the new york stock exchange. >> and i'm bill griffeth stocks round pressure today. the dow actually in negative territory for the week now it's been hovering above and below that line all week earnings from cisco and walmart dragged the average lower, and, of course, the uncertainty coming out of washington doesn't help as well. >> yeah. even p & g is negative all 30 dow components are. investors looking at the fate of former goldman chief operating officer gary cohn. the white house says he's not leaving his post we'll have all the details. >> steve bannon says we're at economic war with china. the former ceo of lvmh will tell us why he actually doesn't think the u.s. can afford a trade war right now. let's start with the two big things investors are watching carefully. retail earnings again and more potential drama in washington. courtney reagan is covering the

morgan brennan joins us now with a look at defense stocks ahead of the president's remarks morgan >> hey, that's right, scott. so a mixed session for defense stocks but the sector is continuing to be in focus as president trump outlines that strategy for america's longest running war. lots of unknowns still, but if that includes more american troops in afghanistan, more engagement would mean more money, so, first of all, how is it going to be paid for? the trump administration proposed a 2018 defense budget of 639 billion all in, but the overseas contingency operations oco portion which makes up the war fund would likely increase if there's going to be a ratcheting up, service contractors like leidos and caci could be likely beneficiaries. could see more orders for remotely piloted aircrafts from general atomics, and could see more potential switch blades from small-cap contractor aero environment and like the text call armored vehicles made by bae systems, general dynamics and oshkosh corporation. lastly, this could make the case for a new light attack aircraft program. the air f

, guys, morgan brennan here with breaking news regarding ge, specifically ge's chairman through the end of the year, jeff immelt, in a statement, he notified members of the manufacturing council this morning that he could no longer serve on the manufacturing council saying, quote, the president's statements yesterday were deeply troubling, there would be no ge without all peoples races, genders and sexual owner yenations. ge has no tolerance for hate, bigotry, and the white supremacist is extremism that the country witnessed last weekend. he goes on to say that he joined this panel because ge exports over $20 billion of american-made goods to the world and he believed we are best served when we constructively engage with leaders in the u.s. and around the world, but that given the recent events, the ongoing tone of the discussion, that he no longer feels that this council can accomplish these goals. that's a statement from jeff immelt back over to you. >> morgan brennan with comments from ge's outgoing ceo, thank you. >>> well, there's other stuff going on, by the way, in washington

falling nearly 1% as buffett jumps his stock. morgan brennan has more. >> that's right, so general electric is now trading in bear market territory, down 22% from its december high. it is the dow's worst performer and it came under pressure today on news that berkshire hathaway sold its stake now, remember, warren buffett invested $3 billion during the financial crisis this was a special deal. and it resulted in a roughly $1.5 billion plus profit that stake accounted for less than a quarter% of outstanding shares so small but the move was interpreted as one fewer vote of confidence for this beaten down stock and just as john flannery takeses he the. so what will it take for ge to reverse course for starters, investors and analysts want to see more stable cash flow. that has been an issue all year long there is also skepticism that it can hit its 2017 forecast and some are concerned that the power business which is ge eechlt largest is showing signs of softening but the biggest thing to watch, going to come in november. new 2018 eps guidance after flannery's review of the company. t

can do this >> and also esports un600% in the past year. let's go to morgan brennan with a market flash >> so take a look at herbalife and the other multi-level marketing companies. they are all down at least 6% in afternoon trade. herbalife down nearly 7%, new skin down 7 abo.5%. unclear what is driving this action to the down side in these names. we will bring you those headlines as we round them up, but again, herbalife, new skin and usana all trading lower. >>> a huge week for retail earnings and are these make or break results? plus an inside look at the financials of venezuela's main oil company and what it means for the chaos the.er "power lunch" will be right back because, when you really, really want to be there, but you can't. at cognizant, we're helping today's leading media companies create more immersive ways to experience entertainment with new digital systems and technologies. get ready, because we're helping leading companies see it- and see it through-with digital. . >>> i'm sue herera here is your cnbc news update. in a statement from the diplomatic reception roo

lot more "power lunch" is ahead. >>> plus the uber-ization of the trucking industry. morgan brennan what do a smartphone and a case budweiser have in common in i'll give you a hint that's coming up what are you working on? let me show you. okay. our thinkorswim trading platform aggregates all the options data you need in one place and 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... what's up, tim. see options data like never before. with thinkorswim only at td ameritrade. won't replace the full value of your totaled new car. the guy says you picked the wrong insurance plan. no, i picked the wrong insurance company. with liberty mutual new car replacement™, you won't have to worry about replacing your car because you'll get the full value back including depreciation. switch and you could save $782 on home and auto insurance. call for a free quote today. liberty stands with you™. liberty mutual insurance. live-streat the airport.e sport binge dvr'd shows while p

morgan brennan is live at the travelers insurance catastrophe center in connecticut. >> wilf, that's right. take a look behind me. we're at travelers national catastrophe center and as you can see, you've got monitors and screens up on the walls behind me that have everything from weather analytics, to satellite imagery. policyholder data. even social media feeds that the company is using to monitor harvey in realtime as it sits on the coast of texas and even as you can see right here, louisiana now, too so this technology, much of which didn't actually exist for hurricane katrina, or even for 2008's ike, is now a crucial part of the claims process for travelers. >> many of the new tools have really expedited the claim process. for instance we can actually build out the footprint of a property before we're on site to inspect it >> so travelers is one of the biggest insurers in texas. about 3% market share on the homeowners side of coverage. and almost 8% market share for commercial that's according to wells fargo. this center has been monitoring harvey all weekend and as the claims b

shippers are connecting with truckers our morgan brennan is live on a truck on a realtime delivery right now. good morning, morgan >> reporter: hey, that's right, i am technology is changing the way truckloads are brokered. think user-friendly apps, operating on the cloud, powered by algorithms matching freight to trucks at market competitive rates. so take the big rig we're riding in right now our driver, william, just dropped 2,000 cases of budweiser at a distribution center in the bronx. we are now heading back to the anheuser-busch brewery in newark to pick up a second load now, he uses convoy. that is a start-up that has raised about $80 million from the likes of jeff bezos, bill gates, mark benioff, and he started using the app six months ago and already is resulting in more business for him. as for anheuser, it's better navigating the highly fragmented truck industry to find capacity for all the loads. but convoy certainly isn't alone in this space. uber launched the freight service earlier this year. amazon is exploring this space and other startups include what anheuser us

. >> nafta talks kicking off this week our morgan brennan focusing on the stocks that could stand to win or lose from a revision. "halftime report" returns to post nine right after this at ally, we offer low rates on home loans. but if that's not enough, we offer our price match guarantee too. and if that's not enough... we should move. our home team will help you every step of the way. still not enough? it's smaller than i'd like. we'll help you finance your dream home. it's perfect. oh, was this built on an ancient burial ground? okay... then we'll have her cleanse you house of evil spirits. we'll do anything, (spiritual chatter) seriously anything to help you get your home. ally. do it right. >>> deere falling more than 5% in today's session according to our data partners at kensho, there have been ten other times the stock has dropped at least 5% in one day since 2010 a month after a similar drop, agco jumps nearly 11%, deere rises about 8% cart pillar and torro gain more than 7%. for more, go to cnbc.com/kensho. now back to the "halftime report". >> welcome back. nafta renegotiations k

gospel tune. that's the cbs evening news. i'm demarco morgan in houston. >> brennan: and i'm margaret brennan in new york. thanks for joining us and good night. captioning spo >> it's long term, not short term. the water hasn't gone anywhere since we've been here today. >> it's a tough time for people. but you can come out here and really make yourself feel like a true texan helping people in need in times like this. >> i didn't think i was going to live and the lord allowed me to live. >>> the heavy rain is done, but the work is far from over. rescues going on 24/7, and one entire city has no running water tonight. long gas lines

, maybe one or two. >> what will morgan brennan be doing in the year 2045 >> working for cnbc, naturally. >> will "fast money" be here in 254 2045. >> it will be, you won't. >> ouch. that's hurtful where are you? >> over here you really cannot see. let's get to stocks. next eclipse, 2024, april 8th. i already requested the day off. no one else is getting it. stocks for the next 28 hours, pete najarian? >> look at the camera. >> where is it >> i'll continue to own it, likely, unless something major changes, apple i love the company they continue to innovate, go the right direction. augmented reality will be the next step. listen to gene munster he's right. >> these glasses, it's tim seyless. >> brian, goog the is the one that sticks around a company that has their operating at margins up to almost as high as they've ever been multiple billion-dollar businesses within the company we're going to hear about over the next 20 years. >> unless the internet is a fad. steve grasso >> look at alibaba i don't know about the next 28 years, the next 2 to 8 years alibaba is following in amazon's foots

disruptive match, but transcript titans -- >> excellent you hurt yourself. >> morgan brennan getting read can to go. >> it's 5:00 somewhere, right? all joking aside in the next couple minutes we're going to quite literally a beer run. we'll be talking technology and how it's finally shaking up the $700 billion trucking industry you're not got to want to economies this so c'mon >>> kell come back, this might be make you feel old the hashtag turn ten today a decade away google design es suggested that it be used to group conversations. twitter initially rejected the idea, but adopted it two years later. studies says 75% of all internet users use hashtags. >> they encouraged you to put a dollar sign in front of the symbol -- >> you still do that. >> that's not number i use that before like number. what is that >> hashtag. >> what is that for? >> to group things. >> not related to hash. >> an issue like the eclipse -- >> even if i didn't mean number? >> so that anybody who wanted to follow the eclipse and your tweet, click on it. >> it's anumber symbol for me. >>> when we return, jim cra

military's suppliers, morgan brennan. what did you find out? >> president trump will become the third president to send more troops to afghanistan. here's the key about that. what are the roles they're going to fill? the center for strategic and international studies published a 160-page report on this he says this will likely involve specialized officers who will train and assist the afghanis. also expects to see increased air support. to analysts say services contractors will be early beneficiaries of increased activity other names to watch, makers of remotely piloted air crafted, which are inaccurately referred to as drones sometimes manufacturers of light tack cal and armored vehicles bae systems. and if we boost air support, you're talk about lockheed martin and boeing. we're still light on details here in the meantime there's another development to watch today when the markets open this occurred last night the air force awarded two new development contracts for t northrop grumman will compete for that lockheed will not. it's the modernization of the ground based leg of the nucle

over to morgan brennan with what's coming up on "power." >>> coming up at the top of the hour, we have an exclusive interview with house speaker paul ryan. we'll talk taxes, the trump agenda and the debt ceiling and much more. plus, what happens when a company stock is tanking but it's still paying a very high dividend we break down when you should worry that the payouts are about to be cut. and we're tracking tropical storm harvey what it could mean for oil prices, also the local economy that and so much more straight ahead. in the meantime "the halftime report" is back after this i think that she's a very nice girl... you never got the brakes looked at? oh yeah. no. at cognizant, we're helping today's leading manufacturers make things that think and do automatically. imagine that, a world of new digital products and services all working together for you. can i borrow the car when it's back? get ready, because we're helping leading companies see it- and see it through-with digital. mikboth served in the navy.s, i do outrank my husband, not just being in the military, but at home. she

trade. another key to the crucial energy puzzle is the pipelines of course morgan brennan is working on that part of the story. >> hey, it's look a look at the picture in the wake of hurricane harvey start with the clone dwryale pipeline have been impacted by harvey that's thanks to out ages at supply points and a lack of supply remember about a quarter u.s. refining capacity off line in the gulf right now the privately held pipeline moves up to about 3 million barrels of refine the product per day, it's supplies as you can see key eastern markets. everything from nashville, atlanta, charlotte all the way up into new york that's the lenden nurse outpoew. the company said the lines are down from houston to herbert you can see the red dots but operating east of lake charles in louisiana colonial warns however that devote deliveries will be intermittent ant dependent on terminal and refinery stlie but does hope to be able to return to service to houston starting on sunday. colonial isn't the only one. the explorer pipeline carrying about 660,000 barrels of refine the products daily north w

catastrophe management center to assess the damage and that's where we find our morgan brennan morgan. >> reporter: hey, wil. travelers is assessing harvey right now from here in windsor, connecticut, at its national catastrophe center, and it also has resources on standby for the golf region. it's not just homes or businesses that adjustors are going to be assessing. several analysts expect the auto losses to be much greater than we typically see for a hurricane because the flooding has been so extensive and also because new cars are just more high tech the acceptsors are much more vulnerable to water damage that's something to watch with progressive, all start, berkshire hathaway and travelers as well which actually trains a lot of its adjusters on vehicle damage in this very room here in winder, but that's just one piece of the property puzzle since this is largely a flooding event, it is a complicated picture, and that's one reason so many of the early estimates on losses have been so varying depending on the sources, so here's how to think about this the federal government is goi

stay positive, kate, thank you. >> meantime, aig's earnings are out. let's get back to morgan brennan with those numbers, morgan >> let's look at the numbers american international, scroll down, the i have the numbers right up here to look at reported adjusted earnings of 1.53 per diluted share this was a big beat versus the analyst estimates. and lower than invested casty losses this is behind the beat. 1.26 billion versus expectations and 975 million. but commercial is what disappointed pretax income, there was only 716 million commercial insurance net premiums written, also dropping by 9% on a constant dollar basis, divestitures and closely watched metric, that came in at 73.8 for commercial. with some of that increase related the company says to second half 2016 loss estimates that are tied largely to the u.s. casualty business now in the release, ceo and president brian saying, quote, we will build on aig's strong franchise by maximizing the value of our international footprint which distinguishes us from many of our competitors while market conditions remain challenging, we are commi

north korea. >> now as we show you they are in the way staying with defense, morgan brennan is at the air force space in new mexico. morgan >> reporter: hey, michelle the air force space is home and the vast majority of pilots trying to fly zones. >> something else is a foot here right now. as tensions escalate with north korea, there is been so much focus on military readiness. the air force is experimenting new ways to streamline its procurement process. that holomon they're testing jets this marks a big potential shift in the way the market can make puch congresswomen and tman, te that the goal is easier to ladies to work with the grove. >> were not going to spend a whole lot of team to come up with specific environments all right, lets see what people have and lets touch it and that's lauren from that and we'll see where we go. >> this except except striifts you have three elements and also tech hchlt tron. >> all three of those contractsers have put up money to be here and they're doing it without any guarantee that any of this could actually materialized into an official program

the trading day, we have the dow up 45, s&p up five points. on the floor here with morgan brennan here today we had rally mode most of the day but it's kind of moderated in it the afternoon. we had some relief it seems that gary cohn says he's sticking around and will try to push through tax reform and what else is on your radar today >> that's certainly been the case we've seen all 11 s&p sectors higher today at all. i think sort of the big move that everybody has been watching in the past hour is actually not in stocks but in currency and the fact that we've seen the euro strengthen against the dollar, highest level since january 2015 after ecb president draghi spoke in jackson hole didn't lay out any kind of indication on a timetabling for paring back on the bond buying. >> does show how sensitive people are to any sense that things might change over there, that they might start to reduce accommodation. the currency markets, as you say, took it and ran. >> yeah. >> so we'll see if that's a follow-through or just a little bit of a blip on a friday. i would also point out that the ban

address the nation tonight at 9:00 p.m. of his plan in afghanistan. morgan brennan is here with more >> that's right, over the weekend, a u.s. guided missile destroyer, this is uss john s mccla mccain off the coast of singapore. the fourth times this year that a u.s. warship has been involved in the accident of asian waters. it is the second time that destroyed the ship fitzgerald deadly crash of the coast of japan the navy's top admiral ordered a fleet wide review in the pacific. these two cases. we are talking about clash d destroyer. they are made by general dynamics they are equipped with lockheed martin they are stocked with raytheo tomahawk missiles. according to a number of other shipping companies in recent weeks and months, we have seen that traffic pick up significantly so as all of this unfolds, eyes are turning to the korea peninsula where the u.s. just kicked off military drills with south korea this will be taking place the next ten days. tonight, when we have president trump taking to television talking about his much anticipated long away of afghanist afghanistan. >>

the defense industry morgan brennan is back with that. >> remotely piloted drones, mor military vehicles and munitions. keep in mind we're still very, very light on details. the first to benefit from a troop increase likely to be the service contracts, caci and leidos this could also help make the case for a light attack aircraft program. now as i saw firsthand earlier this month, the air force is test i testing as it explores this option the super tacano is being produced for the afghanis. we're paying for that as well. that said, analysts are skeptical about how quickly the program would translate into planes as we wait more from the pentagon on all of that, another piece of news is fueling the defense sector today minute man 3 ballistic missiles one of which was test fired earlier this month it means lockheed martin is no longer in the running for this contract valued at $25 billion telling me, quote, they are disappointed with the outcome and looking for a debrief about the selection. meantime take a look at defense stocks all trading higher today sara >> absolutely. boeing

. >> thanks. coming up s will the biotech climb continue that's ahead first to morgan brennan for a cnbc news update. >> the u.s. is requiring russia so close the consulate in san francisco and washington, d.c. and new york city in response to the kremlin aegs decision to reduce the mission in russia last month wells fargo says it's uncovered twice as many potentially unauthorized fake accounts than it originally estimated. the bank now says 2.5 million accounts were impacted by the fake account scandal it says it will pay out an additional $2.8 million in refunds to impacted customers. and a look at one of the many air rescues performed this week in houston these pictures are from tuesday as members of the new york air national guard performed one of its 345 rescues of families and animals who were stranded in the flood waters unfortunately, there's another hurricane on the horizon irma strengthened over the eastern atlantic forecast to become a major hurricane by tonight and could become a category 4 storm by the weekend. it's too soon however to speculate on the potential continental u.s.

morgan brennan about how rail lines, airports, a lot of things you may not realize come through houston. of course the city is best known for one thing, that is oil and gas. and let's update a little bit on the refinery numbers again, what happens here matters on the west coast and matters on the east coast because about half of the gasoline that we use in the northeast, heaviest gas market in america is refined right here and brought up by pipeline about 20% of national refining capacity is currently offline. i say about because the numbers are fluid. some of the companies are not giving us exact numbers. some are not saying refineries are completely shut down here's what we know. the majority of the refineries as we talked about yesterday and this morning around here maybe about 2 million to 2.2 million barrels per day are offline. further east in bu mont, exxon confirmed the beaumont facility is shut down, reuters reporting that and motiva has shuttered 60% of the production at the big port arthur factory. that is the biggest refining factory in the united states 600,000 barr

morgan brennan. she spoke to the air force secretary about the north korea threat morgan, what did you hear? >> reporter: yeah, good morning, becky. so here the air force is taking the unusual step of testing off the shelf light attack aircraft from three contractors to see basically what is already available on the market. it is one of the ways the secretary of the air force, heather wilson, is looking to bolster the air force's readiness. as tensions escalate, she spoke with me about what is needed to keep america safe. >> this year's budget proposal, we've turned the corner on trying to restore the readiness of the air force the united states air force is too small for the missions that the nation is expecting of it. and as a result, we are stretched very thin. we have asked to increase the end strength in the united states air force but also putting money into immediate readiness and then medium and long-term modernization so that we're ready. >> reporter: so the air force has a huge shopping list that includes modernization of two legs of the nuclear triad, both of which will take

. morgan brennan joins us right now with more on how the talks could hit the transport sector morgan, good morning >> good morning, becky for those companies that are moving all those autos, avocados, energy products around north america, that cross border trade has been a growth story. especially on the southern border so take warner enterprises the biggest u.s. truckload carrier doing business to and from mexico. the ceo told us yesterday on power lunch that mexico business is now 15% of warner's total business that has grown for ten straight years he echoes what i hear from other transport ceos that it's time to modernize nafta. address e-commerce automate border crossings. both of which are on the table right now with these talks but beware, if nafta just goes away, all three economies would be hurt. that's what they say u.p.s. and fedex have been outspoken on trade as well with rival shipper ceos co-authoring an op-ed as they said earlier on your show, u.p.s. chief david abney maintains every new trade agreement has resulted in a 20% jump in u.p.s.' export business meaning more

set to report. morgan brennan drew the short stick and joins us with what to expect from aig, metlife and prudential good luck, morgan. make it interesting. >> good morning, joe it's going to be a really exciting day this is insurance super day a flurry of insurers reporting including the u.s. top three, aig, metlife and prudential financial expected to post strong earnings growth group underwriting expected to be favorabiliorgavavorablefavor. growth in the pension risk transfer business, a lot of companies have been offloading pensions to these companies, and expect an impact from low interest rates which has fallen with the yield curve flattening, despite more hikes by the fed. hi all three have conference calls tomorrow morning comments from the new aig ceo, bria dupperrault will be the most watched since he talked about more tech adoption and m&a for metlife, this is the last report before that company spins off its slower growth more volatile u.s. retail life insurance and annuities business that will start trading next monday as brighthouse financial. that's adding to the debate

headquarters morgan brennan is digging through the numbers of hurricane harvey's insurance impact. while it's still early, she does have some things to tell us about. good morning. >> good morning, becky that's right, it is still very early. we're just starting to see assessors get out on the ground. the bigger number will come out in the coming days and weeks but the latest estimates of the impact of hurricane harvey, now, the risk modeling firm says economic losses, that's not the same thing as insured losses, could total $70 to $90 billion most of that flood related with less than 10% from storm surge and wind now, about half a million flood insurance policies, which are underwritten by fema, could be affected from the storm and they are warning that this could be the largest loss event ever for the national flood insurance program. now, as of wednesday, fema had already received about 35,000 claims these are just the initial claims to put this in perspective, hurricane katrina is the biggest event on record from a flood standpoint $16 billion paid by the government on almost 168,000