country, limiting the influence and power of russia and china that is not really happening and i gotta be honest i fear the defense budget is going to get on the here's a administration. down at the very bottom of the list, dealing with global climate change all the things above it many filling in right now and this is good to be an issue, as far as the stock market is concerned is taken on the chin sent started even up with harris. this is it this is when trump was soaring and the probability pulled against president biden it was rocketing higher now it's coming down this is with the nasdaq and a bigger hit taken on the small-cap, the russell has given up all of its gains and had record-breaking gains. i think with the russell it does represent the domestic economy the u.s. economy so there is a time that maybe it was going to be clear sailing no harsh regulations or taxes and all

that is back in play so the russell rally is over. liz we came back a little bit but i think the last hours would be tough. >> were looking for the rescue boats. i'm not seen on the horizon. liz: as we kick out the final hour of trade, no doubt about it the next 59 minutes of trade will make a difference between a market thunderstorm in an outright cyclone smashing into wall street the downpour of panic selling started this morning sparked by increasing recession worries in the wake of friday's anemic july jobs report the dow went straight down south at the lowest point retreated 1238 points, right now we are down 1053. off the worst of it but a loss of 2.6% that is a decent chunk, as that is the s&p retreat looks down 168 or 3%.

at the lows it fell. slick close to 5100 which would've shoved it over into the edge of correction right not 5175, not too far from it let's look at the nasdaq it was already over the correction cliff after more than 1000-point get punch that it took last week. what you see a loss of 651-point only pushes it further into the goalie. the russell you heard charles talking about look out below nobody coming to rescue the small and mid caps they were in correction already adding another 78 points or 3.7% to a very ugly situation. none of this is near as ugly as what happened to japan's nikkei overnight in a once in a generation freefall the index dove 12.4%. the worst loss that the index has seen its 1987 dreaded black monday, no doubt we bring it

back to the u.s. i read monday in the u.s. for every major sector to the dow not a single bit of green, the best of the worst 3m, walt disney, procter & gamble, j&j are all down from a fraction to what and how%. if you head south to the bottom it is big tech getting slaughtered led by apple down 7.13%. it's toggling back and forth with intel intel down more than 7%, amazon getting clipped by four and a quarter percent. we need to look apple because the selloff has a big star, warren buffett knife can cut both ways. "after the bell" on friday for an berkshire hathaway revealed a cut it's taken iphone maker by nearly half going from $135 billion stake down to 84 billion this is a lesson in discipline profit-taking, buffett began amassing his stake in 2016 with a cost basis of $34 a share, ran all the way up, now

it's at 205. he was sitting around in the last couple weeks thinking i need to take profit all of this looks heinous especially the 1047-point drop in the dow but if you want to see the biggest sign that the patient brought in kicking and screaming yelling cell has been restrained or subdued wall street sphere index right before the market open shot up 181% to 67 that would be the largest gain in history right now it came down still at 53% but stands at 35 let's bring into big voices to help us understand and digest all of this and make the right choices, j.p. morgan global market strategist just family and global investment strategist. how do the markets go from all in equity riding around at the top down by two what we have now

really dramatic selloff. >> that's exactly what happened it with euphoria into amount dmeltdown really quickly but i think it's helpful to zoom out a little bit and put a little bit of context behind the selloff we have to remember markets have been jittery for a very long time, investors have hated this rally from the day that it started they always felt it was too much too quickly even by too few names not enough breath trying to poke holes in the narrative. you remember any time over the last 18 months you got a cpi read that was worse or better than expected inflation that was worse works better than expected using massive outside reaction from the equity market and treasury that's exactly what you see right now more amplified than that without a doubt but it comes back to data in the data not as good as we would've liked an outside reaction of the overall jumping as its defining market sentiment for a very long. liz: the voice of reason if you want to be or not but some

people say carnage, what about the fundamentals in the fact that the s&p earnings have come in relatively stable. >> that's exactly right i think this comes back to earnings quickly the ism and the services and manufacturing is in the headlines but fundamentals matter. to your point this quota has been pretty good s&p are up 12% kamala harris the problem. in 2000 the tech sector was minting money and by 2002 tech earnings were negative. even the concentration risk can be on the earnings front. if you want more evidence of fundamentals matter that russell to the logging that is not up 12% so far in q2 the earnings are down 20% year-over-year in small caps, earnings matter. liz: they do if you listen to these people over the past six month or year, nvidia, nvidia, arm, s mci their great companies today just as good as they were on friday but we are starting to

see there also floor. if you look at nvidia the lower the session was $90, right now folks are at 99, arm was $96. it's on 11% fall same with s mci, arm is back up to $110 anda center darling had been as low as 529. it's now at $606 what does this tell you, does this mean today was a one and done? >> i think if we put aside friday's jobs a lot of the data came into the back half of last week and focus on the bigger things that have happened over the last couple weeks there are two things that need to happen for investors to lose if not confidence and excitement around the names of particular and a little bit of cold water thrown on the a.i. story maybe it's exciting going to be something that is awkward to be at tomorrow or next week. liz: were getting cold water

thrown on consumer names, estée lauder is on a seven-year low you can put these other ones lululemon is hitting at least a one-year low these are problematic. across the board. >> without a doubt the soft landing has hardened up a lot in the last couple of days really because of the jobs report the uptick in unemployment and greater than expected decrease in wages and the disappointing job numbers. to me maybe i have this all wrong but at one point it does not make a trend and this is overall a consumer doing reasonably well, that messiness and some of the consumer driven names i think it's overdone the rotation out of a.i. that could be a little bit or durable over the long-term. liz: if you're buying what are you buying today. >> the top of the list when you said the guys doing the best today a bunch of those are dividend aristocrats mobile the s&p 500 aristocrats they are holding up 1% in the eight or 9%

downdraft in the s&p 500. if you're looking for companies that are going to show up with fundamentals why not look at the ones that are telling you that the confident and that's what happens with the company increases its dividend in lbl. an etf that puts in all the great dividend payers that are reliable not necessarily sexy. what if you want to buy the s&p but you don't want the seven names and their l the mag seven with two medtronic. >> it is a ticker sps tx technology the s&p 500 with the tech taken out if that's your main worry is a simple solution. liz: you can buy the s&p without the seven names if you are a little drenched at the moment. great to have you both. in any event great to see you we appreciate it on a very busy d day. we are continuing to head south, 1082-point loss for the dow.

things may be very sour on wall street but their sweet and salty for the maker of snickers, pop tarts, m&ms and pringles, details on a potential 30 billion-dollar deal in the snack food world the biggest ever straight ahead also coming up i just asked is this it one indent were are the markets practice being for a bear market one of the top economist mohamed el-erian breaks down the moves and whether the fed must intervene now. crypto investor anthony popp leon no on the crypto death-defying drop no shelter there, what we're going to do is take a quick break but we implemented a market squeeze back so you won't miss a martinet of the market moves were back in a second. don't go away ya know, if you were cashbacking you could earn on everything with just one card. chase freedom unlimited. so, if you're off the racking... ...or crab cracking, you're cashbacking. cashback on flapjacks, baby backs,

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liz: breaking news outlet that was already down but it got a big blow in the last couple of minutes the u.s. judge ruled that the search engine google broke the law in the quest to submit its dominance over online searches and related ads this is the u.s. justice department first victory against a monopoly and more than 20 years. the ruling against google paves the way for a second trial to determine potential fixes such as requiring the company to stop paying smartphone makers billions of dollars annually meaning apple to set google as the default search engine on new phones, hence edging out were muscling out all the other search engines out there like duck duck go, et cetera. also that down for a half% to

$159.20. we have the fox business alert, crowdstrike is striking back, the cybersecurity is in the green after very rough couple of weeks. it is up 1% after denying responsibility for thousands of delta flights cancellations last month after a massive outage saying the airline rejected its offers of help the outage was sparked by a botched software that affected millions of computers running the software delta said it was looking at a cost of over $500 million in lost revenue in the ceo said it would seek damages from crowdstrike and it hired top lawyer david boys and right now it's delta down 4% in crowdstrike says we offered help and you did not take it. a couple of stocks wedding investors amidst all of the red tyson foods up 2.5% that's a 52 week high after the meatpackers chicken business helped boost "the bottom line" in the black in the fiscal third quarter tyson reported 54 cents a share

versus a loss of a dollar 18 a year ago shares have done well here today up 17%. investors hungry for kellan nova the snack food company in this venture we candy food maker mars. if the deal goes through it'll be one of the biggest ever in the packaged food sector. kelly noble which has so many names pringles among them. $25 billion in the deal could value the company at 30 billion right now kellan nova up 73 cen. thought works is up double digits after the tech consultancy firm said it would go private in a deal with apex partners the private equity will acquire all outstanding shares for $4.40 each that is a tiny bit higher than where we are at $4.31 because the stock is up 27% right now this will be a $1.7 billion deal and represents a 30% premium over the company

stock price on friday and expected to close in the fourth quarter. israel, iran and by extension the entire middle east is on high alert tensions there on the razors edge as israel braces for retaliation from iran, were getting take you straight to tel aviv live for iran's new warning as a ten -month-old israel hamas war rages on and president joe biden gets into the situation room, crude oil could rally higher. normally if things in the middle east been out of control but west texas crude is down a quarter of 8% in the aftermarket to $73.37 with the dow jones industrial still plummeting a depth of 1089 points we are coming right back, stay with us. ♪ (woman 2 vo) i have a great boss...

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liz: fox business alert we need to look at the u.s. airlines they are losin. a couple of issues, hurricane debby causing chaos as it slams into the northern part of florida as a category one storm it's now been downgraded right at this moment to a tropical storm. according to flood aware so far today more than 1600 flights have been canceled, more than 4000 delayed.

there's this. iran has put out a warning to air carriers to avoid its airspace israel's foreign minister says iran has warned israel through diplomatic channels that it intends to attack. the escalating tensions come after hamas political leader ismail haniyeh was assassinated last week. it's why we presumed israel pulled off the killing in iran seeks blood vengeance in response. we have this president joe biden arrived back at the white house in the last hour and is getting a briefing in the situation room about the situation there. the u.s. has just matched a fighter jet, carrier strike group and additional warships to aid to israel in the event of attack. alex hogan live in tel aviv. how soon could iran strike began. >> that's exactly the question the people here on the ground have been asking themselves throughout the day especially as they go to sleep every night, when will this attack that is very likely when will it happen

but i want to mention breaking news coming across the wires this hour reports of two rockets being fired at the i rocky and al-assad airbase which houses the u.s. troops no reports just yet of any injuries or damage but we will continue to follow that. as you mentioned the main threat that people feel in the region is the potential of an iranian attack and iran says that likely will happen and it will be severe, this is a look at the u.s. presence that we can see within the middle east with the navy fleets that are en masse all around the region as israel is here trying to shore up support from its allies in washington and it will come to israel's defense. today west general michael gorilla is an here meeting with the chief of the general staff talking security and strategy. this weekend israel held the defensive talks on the likely kinds of attacks that iran could carry out in much of the

preparing that we have seen in recent days has been centered around iran attack back in april when it launched 300 drones and missiles towards israel and one night alone so iran sending this warning to washington. >> if the american government acted on its moral legal and human responsibility and put pressure on the zionist regime we would not have seen this level of instability in the region. in gaza today hamas militants fired 15 rockets from the southern part of the strip into israeli territory and follows a violent weekend in the war that sought dozens of palestinians killed in airstrikes according to hamas and the health ministry warning the death toll has surpassed 39000 people killed in the last ten months. looking to the northern part of israel there has been back and forth crossfire between the idf and hezbollah we've seen this repeatedly over the last several

days, tensions only escalating in the ias took out the weapons storage facility this as other countries are sounding the alarm the world health organization delivered 32 tons of medical supplies this includes trauma kids to lebanon for hospitals to stock up as tensions mount. the u.s., uk and france called for their citizens to leave the country as soon as possible. if they're not leaving especially the u.s. embassy telling people to shelter in place and have the resources that they potentially could be able to do so something that you mentioned iran is saying their closing airspace, that continuing to cause the tensions to rise on the ground. liz: can we confirm they are not just warning to avoid the airspace, they are closing their airspace? >> i should clarify they are

warning airlines to stay out and they said there will be an attack and that attack will be severe, given the wording that they are saying in regards to an attack that they say will take place also telling airlines to stay out of the airspace something that we can likely imagine airlines will take the caution and listen to the warning. liz: 100% we know that, thank you very much alex hogan live in tel aviv the world keeps his eyes on middle eastern drama and turmoil market watchers are wondering if something most retail investors don't even invested is what really causing the market meltdown. mohammed alvarion is here on the unwinding of the world's carried train $20 trillion worth and how to survive it, what happened to bitcoin as a safe haven crypto investor anthony probably otto

explains why digital assets are dropping with just about everything else "the claman countdown" is coming right back in the vic's is climbing once again it is up 60%. ♪ [♪] can a personal loan unlock your ambitions?

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liz: breaking news, part of the selloff in getting swept underneath the water, crypto currency, when you look at bitcoin right now, believe it or not this is way better than the price that we saw 2:34 a.m. eastern time, right now we have bitcoin at 53275, guess what at 2:30 a.m. it was underneath 50000 read a tiny bit of a bounce back, ethereum is down 20% compared to bitcoin 13% loss, we have litecoin down 14% and x rp down 15% to 48 cents. as we look at all that's going

on in the aggregate, bitcoin and the other shed as much as $500 billion in total crypto market cap since friday. as far as bitcoin is concerned and see the largest today drop since 2022 and lost its grip on 54000. ethereum is recorded the largest today drop since 2021, let's forget one of the top voices in the crypto verse joining me on a fox business exclusive, anthony prohow do you assess what's goig on in the crypto market compared to the stock market. >> i think this is a classic dislocation between the fundamental and the price action most of the crypto sellers have lost their minds in my opinion. if you look at what was going on a week ago or two weeks ago pq for you it was at 70000 today is low 50 thousands nothing has changed you continue to see bitcoin the struggles computer network and hundreds of millions of people who hold this it is still is not the best the

basement hedges available in finance and i think this is a classic signal where you get the fear and panic and people run to their accounts and they sell but ultimately looking at the fundamentals those with long-term thinking drive and survive much with those with short-term thinking. liz: there is a saying on wall street in the floor of the new york stock exchange the great teddy weisberg has said to me in the past when everything is going downhill you don't sell what you want to sell you sell grandma's pearls what you have to sell, do you think there is selling where people are cashing out the crypto to meet margin calls elsewhere? >> i think there's probably some of that back happening in the stock market everyone's been talking about japan but short-term thinking is a mental disease and infiltrated all of finance and i don't think crypto is insulated from that, when you look at many of the sellers there are people looking for short-term profit and all of a sudden the price goes against

them sometime with margin and they begin to sell what's interesting more than 50% of all bitcoin held by people that have long-term strong hands they have not sold or move the bitcoin for over a year. half of all the circulating supply is liquid and that supports bitcoin from going down even further. yes 25% plus drawdown is big but we used to see 30 and 40% drawdowns of these have become more muted than they were in the past cycle. liz: the fed fund futures are all in notches for 25 basis point cut in september, not just at 50 basis point cut in september but there is now a significant percentage of odds that we will see a 75 basis point cut. what do you make of that and how would crypto react if the fed were to swoop in. >> i think all asset prices like cheap money and obviously the fed one thing that they got right although it hasn't been

much but one thing they have a lot of ammunition so we head into a recessionary period or start t continue to see a market drawdown they have 5.5% rates where they can go and cut. i actually think there is a chance they might do in emergency rate cut if we continue the past that were on, i don't think it's likely but there is a chance and the rate cut in september will get deeper and deeper as the market goes down. the fed has the room to do it there is an argument that they over rotated and stayed with higher rates for too long, now that they have the ammunition we saw in 2020 they perfected the playbook to cut rates and. money and will head back to the regime coming in at the end of the year. liz: how are you viewing the stock market selloff as it pertains to the stocks in the crypto verse whether marathon digital or coinbase and all of the crypto names that are out there at the moment. liz: one of the interesting things a lot of the crypto equity outperform the spot ra

races. on the way down you should expect the same thing to happen but speaking of the stock market one of the most interesting data points is a correlation between trump's presidential odds of winning in the stockmarket performance. as the odds went up we sell the stock market go up and was we sold the stock market come down the stock market came down that is something i'm watching very closely it's true for non- crypto but also true for crypto equities as well. liz: will look at everything from robinhood to coinbase to all of the other names that are looking green around the gills, red around the gills area great to see you thank you very much you just heard him talking about the yen carry trade we will get to that in a second. we need to tell you the magnificent seven is a disaster at the moment hot tech groups set to lose $900 billion in

value although advanced micro devices, nvidia is down in the different ship names are down and apple is down 5.5% but amd is bucking the trend the non- mag seven moving higher on reports that large rival and video is facing delays launching the newest a.i. processors. as investors flee from text to the comfort of u.s. treasuries, yields initially got shoved way down to the lowest levels in the year they have bounced slightly on economic data that came out with the pmi of non- services, services index that came in stronger than expected but they call for a fed rate cut in the navy even in emergency rate cut joining us chief economic advisor and ceo mohamed el-erian, let me start with that. is there a call coming from your side of the world and you for an emergency 75 were 50 basis point

cut? >> absolutely not that would be a big mistake. if the fed were to cut in an emergency mode when all that we had is slightly economic data it would signal something much worse and that in itself could trigger a self-feeding cycle that would damage the economy and markets the fed should wait until september and then cut in september. liz: cut in september by how much? >> you're talking to someone who is urging the fed to cut in july. i said it was a mistake they did not cut last week. having said that i would not have been cut for more than 25. you have to be really careful here if you don't swing the other way you're trying to hit a delicate balance and yes they are late but it doesn't mean they should go 75. they're starting the cycle in they should focus on the length of the cycle they need to do

three things quickly one is regain the narrative they have completely lost the narrative to stop being so backward looking and more strategic in the way that they think about the economy and policy. three share what you're thinking on the neutral rate should be. they have jackson hole as an opportunity to do this and hopefully they will respond. liz: let's bring up the carry trade that many retail investors watching right now have never engaged in and yet an underlying message almost beneath the water that says is the unwinding of the dollar yen carry trade that $20 trillion of money is in this thing it is very risky and for experienced investors but the unwinding as the yen not so strong is the real problem, is it? >> it is one of five contribute factors in terms of importance

it is the third one the first is the gross care, the second is concerned about a policy mistake in the third is what you and i will call bad market technical will been caught of sites but the massive moves part of who's been caught upside is a japanese carrier trade this is something we've known about four years, they had negative interest-rate they did what people in the west borrowed cheap and put your money in a higher-yielding instrument and now they have to unwind although that. liz: let's clarify a lot of people do not understand this basically in the space of four weeks the nikkei to 25 the dow jones industrial of japan has fallen 25% over the same. the yen has strengthened against the u.s. dollar to 142 versus

161 in july so people were borrowing the yen which is very cheap, flying the dollar and suddenly the yen strengthens and that turned tail and left people flat-footed. >> there's two different dynamics one which the stock market for the first expense of the year. the reason why japan was finally exiting in a decade period of economic red we saw the stockmarket go by 25% completely separately from the psychodynamic going on the bank of japan was worried about high inflation in they started to raise interest-rate more aggressively. it's a psychodynamic that is causing the unwind of the carry trade. liz: i do have to ask as far as buying stocks right now what about when the vic's is high you by, the vic's is very high it

went up skyward 180% earlier today. it's now moderating although by any stretch of the imagination of 62% of 38. what about by the fear sell the phone no. >> if you were under exposed to the market you start to see really attractive opportunities it does not mean volatility will disappear but there are number of names that are trading very cheap right now not under exposed that the driven proposition. if you have cash on the sideline looking for an opportunity to come in and i would look at a few names including the ones that you mentioned which will happen to big tech. liz: i'm just looking at nvidia, is down 7% of the moment the blow of the session was $90. is it 99 now. when there's greek theatre,

that's where the guys like warren buffett go in to book things that have been way too expensive. it takes a lot of discipline and a lot of courage but as we continue to watch, do you have any other message beside the fact of any intervening cut would signal more panic? >> absolutely. i think it would be a terrible idea, those were pushing it be careful what you wish for. you don't want the fed to come out and say it's an emergency, it is not an emergency this is a market correction that has its roots in the fact that were optimistic about the market in the economy and the fed is late, we understand why this is happening but that does not mean that the fed should swing the other way. remember when we had emergency cuts it was in 2008, when something terrible has happened, all that happened here is we are

recalibrating a view of the economy and were worried that the fed is making other policy mistakes. liz: things looked find a month ago and there were so many people saying were looking at a soft landing and earnings are good. are we in a recession goldman sachs up this recession from 15% to 25%. are we 100% recession right now something that people just don't see. >> you had me on a few weeks ago he had two things, people don't realize including the federal reserve that the economy is slowing faster than expected and second when you asked me at that time what is my probability of a recession i said 35% i am still at 35% today is not the dominant scenario and if we are not careful it could become something worse but it's not 100% it is 35% a soft landing is

50% and 15% probability that bigger but not hotter assess the distribution look like that the consensus that are really complacent and put the probability very, very low in addressing golden reason from 1g young somethings as you pointed out is a done deal i don't think it is a done deal yet. liz: not a done deal, great to have you in the chair in your voice at a time like this where now the dow is down 1136 silva was the session 1237. what we decided to do is go commercial free were killing our breaks until the close. as you see the dow is lower in the s&p down three and a third% or 178 points that the big haircut, nasdaq and 647-point though low of the session was a loss of 1067 for the nasdaq and

the russell is getting clock 3.6% were 76-point, charlie gasparino is reporting about wall street watchers predicting a black swan market event ahead of the election,. >> that is what mohammed basically said the chance that a recession, what is a 35%. liz: he said he got 35 goldman sachs 25. it's not a given her bacon, is not the likelihood. so what i hear from a lot of people people like mohammed are underestimating or looking at different sets of numbers and there could be a recession before the election that comes in and that would be take the market by total surprise and that would be what you're seeing right now in terms of trade starting to digest. liz: one bad jobs report - is more than that kamala harris what i would say.

i think there's two economies for a long time there was all the headline number economies. it was wall street trading on the headline numbers, or for earnings not great but decent corporate earnings. then the academy for main street which was very difficult and you get this from people who own small businesses i know a lot of them in restaurant, diners, small businesses get average people who aren't involved in the market because they don't have enough money they might have a 401k but they don't make money like you leaving on stocks like mohammed he does not speculate stocks but his wisdom goes to speculator so to speak, they were saying this is really difficult in its high inflation and the economy as far as were concerned is not that great wages have not kept up with inflation and now what you see, the wall street economy the headline numbers that people trade off and mohammed puts into

his his analysis that that economy is catching up to main street and it wasn't one bad report, i tell you i wrote a whole column about this sunday. i did my interviews with jason trennert tuesday. strategic. >> this is before the employment numbers and i spoke with others including jay clinton the sec chair who told me point flake he gave me his view of the economic numbers and how they were starting to get really soft if you looked at them different and closely and jason laid out his elyria employment report and i think that's what you're getting. does this mean were going to the great depression. that's not true donald trump just tweeted about a great depression. liz: is in the earnings up 11%. >> i don't think so but we do have a lot of debt.

wear personal debt at record levels, weaver treasury department that has been papering over is spending, student loan forgiveness and everything with short-term debt and give them a mismatch of assets versus liabilities that is crazy stuff also pump up the economy the best in canada by the administration during an election year. we have some underlying problems here and you can make a great case that the s&p earnings are up but is a market worth what it is right now, a lot of the stocks are trading at astronomical levels. nvidia as great as it might be it is unburdened by his past and all that. i get that but is it there yet are you using a.i. for everything. i think we are in difficult territory here. i'm telling you. liz: you can use a.i. to create

a picture of a cat drinking a mojito. >> is that increase productivity, theoretically i make a case but we're not quite there yet. my guess this is wall street catching up with main street and i will say this. i covered the 2008 election and the financial crisis i broke a lot of stories during the financial crisis tarp what it did and when i broke the tarp story on never forget that the bailout of the banks the markets went up with a minute and 500-point, we should point out that three or four month later they hit the i mean this was, so remember, this -- liz: considering we're at 38,000. had been above 40,000. >> we're going to gyrate here. that doesn't mean anything about, we still have some real structural issues with this economy. we have an administration that threw a lot of regulation, spent a lot of money they didn't need. liz: and, charlie, you add to

that the tensions in the middle east. i don't know if we can put up delta. delta will pause flights between new york, jfk, tel aviv, threw august 31st. iranians through their hungarian diplomat telling the israelis we're going to attack. >> yes it is a factor. there is no doubt global unrest is, makes markets would bely. -- wobbly. we should point out the markets were flying on the notion, this is demonstrable, it is empirical, they were way up on the notion donald trump would beat joe biden, way up. financials trading up, energy stocks trading up, green energy stocks going down. it was very, very positive for the markets. the minute joe biden dropped, kamala harris was named and it looked like it is an even-steven race with her pulling ahead. we don't know how just yet that will shake off, the markets

started selling off. a repeat of the biden economic policies that kamala harris would likely do is not something positive for the markets. so the markets think that hurts corporate earnings and hurts the economy. that is where we are right now. liz: charlie, thank you very, very much. as we look at the markets, the dow is down 1107, more than 1000 points as you sigh. s&p not getting any help here down 3 1/4%. the major averages looking for the three straight down sessions. the dow has never closed down more than 1000 points to december of 2022. this appears to be the 11th big dow point drop in history so significant. last week's dismal data including the july jobs report set off the stock market. thursday we were selling off as well. next week we get more data. this one is really important, cpi, consumer price index for july. that is a very important

consumer inflation number here. july retail sales, what impact will that have on the fed, fed think and market sentiment, with just five minutes left to trade, amid the big selloff. joining me with 280 billion assets under management, u.s. bank cio eric friedman and aaron's portfolio manager dan ahrens. eric as i look at the selloff i'm thinking to myself, buying opportunity? we do have to give to the other side or do you simply say hold tight and wait until the dust settles? >> liz, we be piecing in very gradually. this is an environment where you don't need to be a hero. key levels for the viewer would be the s&p 500, see if we get to the 5000 level, which is 170 points below where we are right now. that would represent the 200-day moving average. the lows that we saw in april. so we really haven't violated that 200-day moving average

since october of last year. so that we think will be an important test. doesn't mean we'll get there but how markets react around that if we were to achieve that level, we really are important. other thing to keep in mind, technology, especially, qqqs, what is happening with the nasdaq 100, to see if we get follow-through. we don't think earnings gotten 10% worse or fundamentals gotten 10% worse. we think there is an environment where they got overbought. we're looking for key data points for companies. we would be gradually buying here as opposed to running for the hills. liz: think about earnings numbers still coming out. we get palantir after the bell. tuesday airbnb, a cop high-flyers. zoeta ceo is on here tomorrow. wednesday cv is. novo-nordisk, warner brothers discovery.

look me bring in the dan here. the index is pretty spiking at the moment up more than 60%. am i right? this started last thursday, did it not, not just tuesday? >> it definitely started last thursday. a little ray of sunshine i will remind people of was wednesday when amd came out with very strong earnings the market was way up. so ever since thursday, thursday, friday, over the weekend, today it's a macroevent so some individual companies earnings still might look quite solid but the, the purchasing managers index, something very rare that most people don't look at came out with some bad numbers last week that could signal a drawdown. then the unemployment numbers, that led into, you know the carry trade and what we saw

happening in the indexes in japan and other places in the far east. so definitely macro, very ugly at this point. so i'm intrigued with what the follow-through is tomorrow and the next day to see how sustained this is or if it is just a regularrish correction. liz: yeah, well, august and september are known as two of the worst months for the stock market traditionally. eric, would you, you said you were piecing into stocks very slowly, not aggressively, what about the s&p weighted index? and do you feel that's an opportunity at the moment to sort of ladder in slowly but surely and catch some of these low prices? >> yeah i really do. liz, sorry to interrupt. we think it is an opportunity to piece in. for the equal weighted index for the viewers what that is is, s&p 500 is market cap weighted index that has a lot of emphasis on technology right now. we still want to own higher

quality companies. we don't think this push towards small cap is necessarily sustainable. by owning an equal weighted index you are actually getting the large cap companies again by definition equal slices. that is what we prioritize, it actually acted pretty well relative to the last couple of days. actually think that real estate has been a surprising area that acted pretty good as well. not new news that there are challenges in the office market but again if this were a really significant growth scare, liz, we expect real estate, expect credit to really suffer. that has not been the case. that says to us the probability of aing chaing downturn have certainly increased but we think this is more of a gradual slowdown as opposed to growth scare in the current environment. liz: dan, eric, great to have you. here comes the bells, folks. important note here, the vix. [closing bell rings] topping 60. it is at 65 in more than four years. the dow wipes out more than 1000 points. the nasdaq down 3 1/2%. we will