While President Trump says the U.S. is “locked and loaded” and investors sift through the aftermath of the weekend attack that disrupted Saudi Arabia’s crude output, the Wall Street vet who ran Merrill Lynch’s giant tech fund during the dot-com days issued a warning for those looking to hitch their ride to the tech sector.

A near-term correction is “inevitable,” warns Paul Meeks, portfolio manager at Independent Solutions Wealth Management, in our call of the day.

We’re already seeing red ink spilled all over the premarket, but Meeks’s forecast focuses on the lingering uncertainty of the trade war.

“My typical tech company is deeply embedded in a supply chain between the two nations,” he told CNBC, referring to the U.S.-China tussle. “We’ve also started to see a decline in the economic growth rate particularly abroad, less drastic here in the states. But a lot of people don’t realize that tech products and services, whether that be sold to the enterprise or sold to the consumer, you know typically are cyclical.”

Hence, Meeks is calling for a near-term drop on the tech-heavy Nasdaq Composite

COMP, -0.22%

of 10%, which he says should give investors a chance to sniff out some deals. “I always have my eye on my favorite tech names, and I look for opportunities to buy them on dips,” he explained.

But those deals don’t include tech juggernaut Apple

AAPL, -1.94%

 , as he believes a secular slump in smartphones will weigh heavily.

Read: Apple’s new iPhones are overpriced and behind the times

“I would like to shift out of those names in this kind of environment and try to find some deals in software,” he said. “The one that I like the most particularly as I exit Apple and increase in the software space is Salesforce.com.”

Meeks says Salesforce.com’s

CRM, -1.14%

software business “is growing faster and is much more profitable than anything that Apple is doing.”

The chart

No brainer pick for the chart of the day: Crude prices

CL.1, +8.28%

went vertical at the open: Here’s what a double-digit jump looks like in the oil pits:


Read: U.S. oil’s set for biggest daily gain in 3½ years after Saudi attack

The market

As oil goes nuts, sellers are flocking to safer assets. Futures on the Dow

YM00, -0.42%

 , S&P

ES00, -0.42%

and Nasdaq

NQ00, -0.64%

are all feeling a bit of pressure ahead of the open. Gold

GCZ19, +0.85%

is capitalizing on the uncertainty with a move higher and the Japanese

USDJPY, -0.30%

 is also bid higher.

Europe stocks

SXXP, -0.44%

aren’t doing much better, while Asia markets

ADOW, +0.66%

ended with losses. The dollar

DXY, +0.07%

is heading lower.

The tweet
The buzz

The UAW announced on Sunday that more than 49,000 workers at General Motors

GM, -0.54%

plants in the U.S. would go on strike just before midnight because contentious talks on a new contract had broken down.

China delivered a batch of disappointing data, including industrial output and retail sales. China’s premier Li Keqiang reportedly said it would be ‘very difficult’ for the economy to keep 6% growth going.

New York Gov. Andrew Cuomo is pushing to enact a statewide ban on the sale of flavored e-cigarettes amid growing health concerns connected to vaping, especially among young people.

The quote

“I sat through those hearings. Brett Kavanaugh lied to the U.S. Senate and most importantly to the American people. He was put on the Court through a sham process and his place on the Court is an insult to the pursuit of truth and justice” — That was Sen. Kamala Harris and Democratic presidential candidate, tweeting about the latest allegations facing the Supreme Court justice.

Even as President Trump rushed to his defense, others, like Bernie Sanders, joined Harris in calling for action:

The economy

August housing starts and existing home sales data will be highlights this week, but we won’t get a look at those numbers until Wednesday and Thursday, respectively. We’ll also hear from the Federal Reserve, which is expected to cut interest rates by 25 basis points midweek. As for today’s schedule, which is on the light side, the New York Fed Empire State manufacturing survey is released at 8:30 a.m. Eastern.

Read: The economy’s looking up but don’t get comfortable

The stat

$823,000 — That’s how much the Trump campaign netted by selling plastic straws that make a political point, according to the New York Times. The campaign also managed to convince supporters to pony up another $50,000 by buying Sharpie pens.

Random reads

Processed foods aren’t as bad as you think they are.

But being poor IS bad for you — it makes you age faster.

Have you tried charred chocolate clams?

Speaking of shellfish, competitive shucking is real, and it’s decadent.

This is what happens when you visit a conversion therapist.

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2019-09-16