day. the dow, s&p, nasdaq all down. the s&p is down by about 2.5 percent. the dow is down similarly. the nasdaq is down by the most. let me give you some superlatives on the market for today. the dow and s&p are felling the most since this past august. august is also the month for the nasdaq, but not since 2011. a lot of superlative's here. i want to show you what the sectors are that are falling. board, you can see that all 10 sectors of the s&p are down. information technology is the most down, about 3.4%. energy is down about 3.2%, but they have been flip-flopping the whole day. it makes sense that energy is down the most because of what is happening with oil. let's take a look at what exactly is happening with oil. oil is down by more than 5.5%,

nearly at session lows. , this is the lowest we have seen since november of 2003. a fresh low. confined to the united states. it is spreading around the world, from europe to asia. let's take a look at european stocks. you can see that from april 1 two now, they europe stoxx 600 from april 1 until now, the europe stoxx 600 is down. dragona, it is exit the and enter the bear. take a look at the shanghai composite. it is now at the 2900 mark, down about 13%. u.s. majors year to date, all down. and the nasdaq is down by 10%. really, a sea of red.

david: thank you. this is bloomberg markets from bloomberg world headquarters, continuing to cover the markets throughout the hour. mark crumpton has the bloomberg first word. russia's military is operating in syria without a time limit according to a deal agreed to in august and published yesterday. it says russia bears no responsibility for any damage its forces cause. russian planes have flown more than 5000 missions against antigovernment rebels in syria. france is losing patience. the french finance minister says the eu is dragging its feet in cutting off financing to terrorist's. .fter the -- terrorists -- just hours after the united nations declared the

a bola outbreak over, a death caused by -- ebola outbreak over, a death caused by the virus was reported in sierra leone. more than one third of the 11,000 people killed during the outbreak were from sierra leone. a rare january hurricane in the onantic ocean is closing in the portuguese islands. authorities are warning of waves up to 60 feet high, wind gust up to 100 miles per hour and torrential rain. hurricane alex is the first hurricane to form in the month of january since 1938. global news 24 hours a day from the bloomberg first word desk. i'm mark crumpton. david: stocks continue to slide. the nasdaq down just over 3%. theirly do investors have eyes on the market, washington is watching as well. josh: obviously, these are moves

that are closely watched at the treasury department. marketsch financial around the world and evaluate what sort of broader impact they could have on the united states. david: let's bring in john stoltz, chief market strategist at oppenheimer. of this,all, amid all what do you see as the principal drivers? we have heard about oil. we have heard about china. we have heard about the psychology of sentiment. what is the biggest driver? john: fed, currency, commodities, in addition to that, plus a earnings. if anything, the first quarter can either look like paradise or living hell, and it looks like a bit of living hell here. , especially if you consider that we are in a transition. last year, a major transition with the fed beginning to normalize.

a genuine commitment. and then what's happening in oil , most of that, we believe, is in part due to slowing demand around the world. a lot of it has to do with technology. there's an abundance of a oil as almost every day consumers and businesses become more efficient at using the stuff. david: so we have exited purgatory and entered living hell. did you expect this this early in the year? john: as a market strategist, i was expecting we could have some trouble ahead, but i would not would haveed that we had quite as much drama. veryhinese valuation was much misinterpreted by western markets. it's actually a good thing. the chinese of held their currency artificially high for

almost a decade and it has hurt their exports. they were hoping to grow their economy fast enough to offset their dependence on exports and it didn't work. but with all the problems in the world, at least they are being addressed. they may not be addressed correctly in the immediate moment, but it does appear we are on a good path. we have central banks that are very well educated and experienced in prices. there was are saying a great deal of overvaluation across asset classes. chineselated to currency. related to equities, it just seems to be that equities was the last place on a list of asset classes that was a favorite and likely to be taken down and spanked in this kind of market. could veryof that much be that this is about liquidity, hedge funds that got stuck with a liquid stuff we don't know about. they sell the liquid stuff.

on top of that, you have what i would call pirates and gremlins attacking the market, short-term players who, in a market like this, pick up a lot of benefit on the downside, benefit from short sales. david: are you blaming technology? something weogy is benefit from, but anything you benefit from mutually has a downside. technology is ubiquitous. but people are held unaccountable for their statements on social media. others on bloomberg and platforms, things tend to be vetted. david: it seems like a lot of have beening factors out there. let's talk about the data on retail sales. the fireore fuel for or is it highlighting something

different here? john: i think that's probably less troubling. is a consumerhis that finds itself more interested in buying high tech and expensive smart phones that operate like a sponge in terms of absorbing disposable income. an iphone cost you around -- costs you around $600 a just a basic purchase. one third of americans are estimated by doctors to be obese. i am hesitant to buy new close. if i were buff and in good condition, i might have bought four new suits. that kind of thing floods down. in addition, you have a younger generation that is less interested in many of the things retailers have been offering for years quite successfully.

is gettinggeneration older. traditionally, people spend less on items they would normally spend on when they are younger. now they spend more on health care and leisure. david: what are you watching? i know we are going to get some new data out of china. what are you looking for? john: my expectation is that energy will fall lower. when i was around $74 and somebody asked me where i saw it going and i said i could see a low of around $60, there was a gasp in the room. $34 tends to be the traditional bottom. it looks to me, based on the interest to sell oil and the momentum we have, we could gaspbly get to around $25,

, 24 dollars. i have been through every boom, bust, and recycle process in the past 24 years. there is a collective thought in the market that this stuff is really cheap. you realize there is an intrinsic value in stock and that most vehicles on the street are still run by gasoline more efficiently than ever before. at the same time, things are not as bad as they look and sometimes the market overreacts. it does happen. david: we appreciate it. we want to take a look at the major indexes. the dow is off. the s&p is down. this is bloomberg markets. more after the break. ♪

david: welcome back. time to look at some of the biggest business stories in the news. walmart is closing roughly 12,000 stores worldwide. 100 of them are express stores. another 60 -- walmart is closing 200 69 stores. 100 of them are express stores. 60 of them are in brazil. oil is hovering near a 12 year low today. an infusion getting of cash for its birthday. the online encyclopedia is getting an endowment that should grow to 100 million dollars with an 11 years. wikipedia was launched 15 years ago today.

that is the bloomberg business flash. global markets selling off to close out the week. schatzker is erik here to ensure -- to assure us that this sky is not falling. >> i am messing around with my bloomberg terminal because i want to show you something. when you see dow industrials drop 500 points, i think it's fair to say that there are a number of people out there who wonder to themselves if this is 2008 all over again. the answer, fairly resoundingly, is no. come into my bloomberg terminal and i will show you why i say that. the yellow line is the stock market. is the s&p 500. it extends through today. stocks since the year began are down almost 9%. terrible, right? the green line in the middle is

the high-yield market. the high-yield market was flashing warning signs in the fourth quarter. was a widespread expectation to perhaps stocks would follow high-yield, and they have, but the high-yield selloff has not continued at pace. the same these three lines clustered near the top represent treasuries, uni's, and high-yield cluster bonds. what that tells us is that everything is not converging to one the way it did in 2008. some sectors are performing well and making money. i am not telling anyone to rush into munis or high-grade corporate's or even to buy high-yield treasuries. this is not an investment recommendation. it's two point off that the selloff is not happening from the bottom to the top. -- it's to point out that the

selloff is not happening from the bottom to the top. it's only at the bottom. it's a good old-fashioned stocks sell. david: there is perhaps a buying opportunity. here is one way of looking at it. the way to look at this is to look at the forward pe. how are people pricing stocks relative to what they think they can earn over the course of the next year. i am almost there. i hit the wrong key. there we are. come into my bloomberg terminal. you can see that stocks are trading about 15 times what to earnings estimates are. we are more or less at the same levels we were back in 2013. almost by definition, if you thought stocks were a buy thehere along the way from

middle of 2013 all the way through to the end of last year, they have to be cheap today. again, it is not a buy relativeation, just a statement. now, let's talk about china, because china really is was underlying everybody's fears. peoplere three things are concerned about in china. there is slowing gdp, of course. we don't know how fast china is growing. then china's twins ling foreign-exchange reserves. they are down by -- do wind ling foreign-exchange reserves. foreign-exchange reserves. those things tend to be linear. then there is the impossible trinity. china would like to do one of three things, devalue the currency, close the capital or reverse the flow of

funds by raising interest rates. it can't really do any of the above without causing enormous trouble for many different constituencies. an overnight evaluation the likes of which we saw from the 2015 national bank in would make things difficult. it's a huge problem. is china really going to raise interest rates? probably not. , thankerik schatzker you. still ahead, we look at individual stocks on this trading day. this is bloomberg markets. ♪

david: welcome back.

let's head to the markets desk. the dow is down. >> taking a look right now at specific information technology stocks. on the bloomberg terminal, it's the second worst performer on the s&p. down by about 3.5%. first of all, let's take a look fang stocks. you can see they are all down on the order of 3%. as low as 3.8% when it comes to amazon. all of these numbers are as low as this past october. take a look at microsoft and apple. two huge tech companies in the battle between the pc and non-pc world. microsoft down by 4.2%. this is the lowest since october. apple down by a blowout -- by about 2.5%. in january,lowest just about a week.

has plummeted today, down by a little more than 8%. been crawling has the entire day through. for intel, this is the biggest december of 2008. the reason is the company said the year is off to "a soft start ," because of global economic growth, particularly in china, which is hurting demand for personal computers as well as servers. there is one plus i want to talk to you about. let's bring up electronic arts and gaming companies. is up by about .42%. it had been up by as much as 2% in part because bankamerica raised the stock from buy to neutral, maintaining its trice par get of $81. it said recent weakness is a -- price target of $81.

it said recent weakness is a buying opportunity. david: thank you very much. shares of citigroup and wells fargo are down after banks reported earnings. wells fargo revenues are up. a bloombergin intelligence bank analyst and start with citibank and those assets. the theme this earnings season has been cost cutting. alice: cost-cutting has been the theme. ,his quarter we saw yesterday jpmorgan operating a little better than people thought. however, in a guidance going forward, they think interest margins that had been helped by gains will be helped in stead by

the first rate increase from the fed. citibank saw a revenue gains. on the cost side, cost falling, but maybe not as much as people would like. david: the story has been how much banks had to set aside for legaltory issues and fees. a fundamental change there. much less being spent. allison: what we have seen with citigroup and bankamerica as haveas jpmorgan is they put most of the legal costs behind them. we have seen a divergence across the global investment banks this year in terms of much lower at city, bankamerica, and jpmorgan. however, i also think the bigger issue for the banks, and what is

overshadowing earnings is the market we are seeing. citigroup does earn roughly 50% of their revenue and profits from international markets. global growth concerns are obviously a much bigger issue .or citi the other issue, and why people are focused even more on cost-cutting, is since the fed willtarted to raise rates, some of the concerns we have seen bleed into the market fundamentally? david: jamie dimon said it would not have that profound of an effect on jpmorgan. is oil and gas a bigger deal for them than the other banks? : think the bigger issue is that they have been releasing reserves for several quarters with a credit tailwind. jpmorgan for the first quarter

since 2000 nine actually built reserves. wells fargo is roughly flat, but , for the first time in years, is actually building reserves. much of that is related to energy, but the key question for investors is, is that going to spill over into other parts of the economy? basically, as we come out of the crisis, and for the last several years, there are some concerns regarding underwriting. people are concerned that some of the issues we have, if the economy starts to weekend, could we see broader issues in credit? david: thank you so much. still ahead, oil continues to slide just when we thought we were seeing a slow and steady climb. ♪

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so your business can get back to business. sounds like my ride's ready. don't get stuck on hold. reach an expert fast. comcast business. built for business. david: from bloomberg's world headquarters in new york, this is bloomberg world markets. let's start with the headlines.

mark crumpton has those. mark: the obama administration has cooled on development of public lands. the administration will study the environmental impact of a coal leasing program and may raise royalty rates. about 40% of coal mined in the united states comes from federal lands. police in indonesia arrested three men suspected of being thursday's terror attack. two people were killed in bombings and explosions of gunfire, along with all five attackers. michigan governor rick snyder once a federal emergency declaration for the town where the water supply was poisoned. water wasp contaminated with lead when it started using a nearby river to save money last fall. penn says he hopes to start

a conversation about drug policy with his article on el chapo, the mexican drug kingpin. article failed. instead, the attention is focused on how sean penn met with guzman while he was on the run. el chapo was recaptured last week. by 2400news powered journalists in 100 50 news bureaus around the world. david: thank you. market's deskthe for the latest. >> the latest is still the same. we are on track for the worst month since 2009. taking a look at the numbers, we are seeing the numbers go a little lower. we had a little bit of a in the past hour or so. -- a rise in the past hour or so. the nasdaq continues to be the down 3.5ag or,

percent. 90% of stocks on that index are down. we were talking earlier today about how it did fall more than 500 points. winners, some in green, so i want to talk about that. first, i want to go to casino stocks. wynn is waning. fourth-quarter revenue for las vegas came in about $11 million -- wynn is winning. fourth-quarter revenue from las vegas came in about $11 million higher than expected. it appears investors are hanging onto to what is happening in vegas. the final result will be coming in the first week of february. another stock to look at is chipotle. up bys turning around,

3%. it turns out all of its stores are going to be closed temporarily in order to look at improved food safety. they did say there is little risk of an additional e. coli contamination. david: markets are getting ready to close in new york. headed to the biggest gain in weeks, closing just per ounce. sanctions on iran may soon be it to boost oil shipment from opec's biggest member. the vice president at turner mason is joining us from dallas. john, let's start with iran and we process -- prospect that

could have more oil flooding a market that is already glutted. what do we think might happen when the sanctions are lifted. john: first of all, thank you for having me. we are going to find out soon, it sounds like, as you just reported. monday may. our estimates -- and everybody has different numbers, is that they can probably get 3000-4000 barrels a day on the market pretty quickly. they are saying they could get up to a million within the next year. we don't believe they are going to be able to do that. they may be up to 500,000-600,000 by the end of the year. david: this has been in the works for a long time. maybe a last check on the things iran has to do before the sanctions are lifted. that if you look at the timing, it couldn't be worse. john: absolutely. the strong dollar, the bearish sentiments in the market, the timing is terrible. at the same time, just like the

, by on the rumor, sell on the news. haveactually happens is we been selling on the rumor and buying on the news, depending on what people perceive about how much they can get onto the market. i think they have priced the worst into it. david: sentiment is such a huge issue here, the psychology of what's going on in the market. how do you see through that? john: it's impossible to predict when it's going to end. it's a catch a falling knife concept. nobody wants to grab whole of it -- hold of it. but it's still falling. my personal view is that it's going to stop sometime midyear. my base case view is that prices

should be in the $50 range, , by the end of the year. i have less certainty about the short-term. i am worried about the long-term. the long term, we have looked at where crude prices have to be to maintain equilibrium between supply and demand. we think we get to $60-75 dollars sometime in the next 2-4 years. it's a wide range. there, we think we stay aware for some time, similar to what happened between 1985-2004 when we were trading in the $20 range. i think we are seeking an equilibrium. how quickly we get there is a big question. david: i cannot imagine that amid all this volatility, just the art of forecasting must be difficult at a time like this. john: it is difficult.

we do a forecast twice a year. and i am struggling. are the toughs ones. nobody knows. it's a guessing game. sentiment is driving the market. and it could drive it somewhere. we have heard people talking .bout $10 a barrel could it get there? it could. i don't think it will stay there long. prices go and the the moreey stay there, supply destruction happens and demand construction happens. that could lead to prices going above the $65 range for some time before it settles back. if it stays lower longer, we might have higher quicker.

avid: just quickly, there is forecast at wanted to. we are sachs is saying going to see a bit of a reverse boom later this year. does that make sense to you? it's yet to be seen. there's some validity to it. i don't think it's going to come that soon. to be athere's going major impact on world crude markets for a long time, and i think that's a good thing. will it recover by the end of the air? i don't know. we'll see. some areas are doing better than others. premium production my continued to grow, but some of the other goings, production is

down. david: thank you so much. appreciate your time. on the way to break, just looking at the major markets, the dow up 463 points, s&p 500 down 3.4%.q hovering around that for the last hour or so.

david:. welcome back. to you.doolittle, over abigail: the stock market selloff here at the nasdaq has been in tench, and as you mentioned, leaving the losses --

intense, and as you mentioned, leading the losses are equity tech markets. it's due to biotech and the overrating of the big tech sector. biotech is in correction territory. foras been in a bear market more than a week now. the question is, is a going to lead to the overall nasdaq lower? an eye on iskeep the current bear market low of 2866. below that, the selling could intensify. big tech is plunging. intel cut its first-quarter forecast, saying that the new year is off to a weak start, especially in china. this is the first big company to report this year and to offer a 2016.outlook on

apple is the biggest drag on the composite index. the company may have to pay an $8 billion tax bill in back taxes on a european tax probe. david? much. thank you very we will be talking more about intel in just a few minutes with corey johnson, editor at large. right now, it's on to iowa. the republican debate was broadcast on fox business last night. donald trump sparred with ted cruz, responding to recent accusations that trump embodies ."ew york values trump was ready with an emotional response. trump: when the world trade center came down, i saw something that no place on earth could have handled more beautifully, more humanely than new york. we saw more death, and even the smell of death. nobody understood it, and it was

with us for months, the smell, downtownand we rebuilt manhattan, and everybody in the world watched, and everybody in the world love to new york and loved new yorkers. i have to tell you, that was a very insulting statement that ted made. david: there has been a lot of curiosity about the -- about how these two men would react to each other. from the get-go, you had donald trump bringing up ted cruz's former law professor in a disparaging way. theas heated from beginning. mark: surprising to some, but not to me, cruz was kind of the aggressor. talk of themn some liking each other, but that appears to have been game theory. they believe they can be the only two finalists. then they will take their chances fighting it out. aggressive.

trump pushed back a little this thisng, but i am not sure is the end of detente. they may flare up and go back to their neutral corners. fundamentally, they both like to not help a third candidate by fighting amongst themselves. david: ted cruz had a polish that has been absent from previous debates. mark: some people view it that way. i respectfully disagree. i think part of why ted cruz has done so well is that when people thinkingring him and about other candidates in the race, jeb bush and others, ted cruz has had a very good debates. he is a champion debater from college. he has a style that appeals to his supporters, and it's a very polished style. he has had zingers. a lot of the stuff that was on display last night, critical of

the media, including fox, which sometimes conservatives won't criticize, criticizing the press as being frivolous, he has been saying that throughout but it's getting more attention now because of his stance among the candidates. bernie sanders was not invoked until about halfway through the debate, and then barack obama. we did see candidates talking more about him than each other. mark: they are auditioning to be the new page, the new chapter in american history. notcurrent president is popular among republicans, to say the least. they talked about how they would be different from barack obama. does tend to pick, particularly after a two-year -- two-term president, someone who is different. so republicans are trying to say here is what was wrong with the barack obama era and how i would be different.

david: thank you very much. mark and john heilemann will be on all due respect tonight. >> the market is manic-depressive and it swings from seeing only the positives to seeing only the negatives and from interpreting everything positively to interpreting everything negatively, and you get these enormous swings of sentiment. >> help us make sense of it. the news we got out of china at the beginning of the year wasn't any great surprise, but it has decimated global markets. what is your take? serious problem, a serious challenge, set of challenges, to convert from exports and construction stimulated by easy money to domestic consumption of goods and services, and to moderate the growth rate, and actually,

to move to a free flowing maybe one which is going to have a recession like the rest of us, which they haven't had for the last 20 or 30 years. a serious problem, but is it something easily surmounted or is it a disaster? people have gone from the first to the second. >> of the headlines we get this morning, shanghai composite back in a bear market, you and i can understand the intricacies of what is happening in china, but for a lot of retail investors, it's very complex. who turns this around? for a number of the earnings season, the central banks are stepping back. who turns this around? >> number one, things don't turn when they should because people are not able to say well, now

.he market is 1% undervalued maybe it has to get germanic we undervalued, which means it swings too far to the negative. >> you have made a good living being a contrarian, taking advantage of other people's fears, being fearful when others are greedy and greedy when others are fearful. how do you know when your ?endulum has overshot >> you have a sense. that's all i can say. it's not enough to be greedy when they are fearful or fearful when they are greeting. you have to know what the market is doing, why they are doing it, and whether it is right or wrong. >> it's not as a fears about china are unjustified. to a certain degree, they are justified. it's just hard to know when they are overshooting the limits of

justification. >> but the key is you have to some bedrock of reality. when you see an asset, stock going like this, stock going like this, knowing that is not enough. we talk about this every time on the year -- air. intrinsic value. you cannot be an investor in less you know something about intrinsic value. up mere fact that a stock is over 20% doesn't make it overvalued and vice versa. that's why you have to be a fundamental investor. and if you don't have the time and intellectual preparation to know these things, then you have to turn your money over to somebody who does. marks earlier today giving us some perspective on what we are seeing -- howard marks earlier today giving us some perspective on what we are seeing in the market. intel shares are plummeting. they've cut their forecast. we will get the latest from cory

johnson in san francisco, coming up next. ♪

david: welcome back. despite a strong finish to 2015, intel says this year is off to a soft start, and shares are plummeting. demand is down for personal computers and servers. we turn to cory johnson in san francisco, our bloomberg editor at large. you spoke with the intel ceo yesterday. what did he have to say? defensive.s a little the results from the prior quarter were strong. quartert quarter, the right now, is disappointing. the market is puking today. single worstst, performer, down about 10% when i last looked at my screen.

i'm right. a .9%. i'm writing. -- 8.9%. i'm wrong. to explain the gross margins. they have typically been 60-65%. when i look at the gross margins, they are good, unless you look at a particular quarter. >> our projection for gross margin for next year is 63%. it is a strong projection. to be clear, that takes out some of the accounting charges associated with an acquisition, so i am kind of giving you an operational gross margin. it is down just a smidgen from what we are seeing in q4, and that is the result of startup our next generation process technology. >> ultimately, this is a company going through big print editions -- big transitions both in the

way they make their chips, usingr and yet less power, but also as those gross margins level out for the year, they are also going through a big market shift with less emphasis on the pc and a lot more emphasis on the data center and the internet of things. i think that is where they imagine the world 10 years from now. they are still great big giant businesses competing in size. david: i am just going on the record to say you're the first person to describe the stock market as puking. rory: that's what it looks like to me -- that's what it looks like to me. i thought i should just say it. david: i am curious about the demand for the kind of chips in data centers. have we seen that growing?

that business is growing, but intel wants to take more space. think about what intel sells. they are selling a chip that's used for central processing. intel geting to see more sockets. they will be plugged into more places in the data center, so they have a lot more room to grow. then they are going to incorporate their process technology into building the chips. johnson, editor at large. coming up, with so much going on in the markets across the globe, you will not want to miss our special report starting in just moments at 3:00 p.m. eastern. right here on bloomberg television. ♪

>> this is a bloomberg news

special report. market selling off big time. it's a critical time for the markets. good afternoon from new york. i'm betty liu. let's head to the markets desk where we have the latest on where we are in trading right now. we are off. not by much. >> we are trading a little bit higher. markets are pushing higher in the past 15-20 minutes or so. take a look at the numbers. they had been lower by about 3% or so. the s&p 500 of the nasdaq are still down. with the s&p, we still are below the psychological 1900 mark. 95% of all stocks are down. we are just up above the 16,000 .ark on the dow all dow 30 stocks are still down on the order of about 1%. year to