It's Jim Kramer here. You're listening to the opening bell of CBC Squawk on the Street.

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Good morning and welcome to Squawk on the Street. I'm David Faber with Sarah Eisen and Mike Santoli.

We're live from the New York Stock Exchange. Jim and Carl have the morning off.

Let's give you a look at futures for this Thursday.

As we head into that Labor Day weekend, you can see we are set up for a far higher open, at least at this point. Investor's sentiment. Well, it may be getting a boost from indications that China will hold off on immediate retaliation for those planned U.S. tariff hikes that, of course, are going higher in part because the Chinese did respond to our last hike in tariffs. The spokesman for China's Ministry of Commerce quoted

as saying that escalation of the trade war won't benefit anyone to sides still planning to meet

in September. Of course, much of this rhetoric or communication is what we've been seeing for some time.

I don't think any of it necessarily means that the Chinese are not still in a stance that

has them backing off from full engagement that somehow would lead to a deal in the near term.

I think it was a surprise olive branch maybe, taken as good news by the markets, that

things weren't going

to escalate even farther at the moment but you're right i mean in terms of a de-escalation there's

not much evidence september 1st this weekend we are set to have a new round of tariffs go into

effect on products coming from china into this country, smart watches, Bluetooth headphones,

flat panel TVs, some parts of footwear. And then more confirmation from the trade rep yesterday.

December, it includes cell phones, laptops, clothes, and toys. And boy, did the retailers that

reported today make it clear that that was starting to factor into their guidance.

Without a doubt, I thought that was the most interesting part of reading these press releases

from whether it be a Dollar General or Best Buy or a few others.

There are no, and some actually taking a paragraph, calling it tariffs and the impact.

I think it was a Dollar General specifically that went there. No,

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