twitter, preiphone 6 levels. but to move it all that liquid is not easy. it is almost 8:00 a.m. outwest, 11:00 a.m. here on wall street. squawk alley is live. good thursday morning. welcome to squawk alley. joining us, henry founder and editor in chief of business insider. with us as always, john fort. we want to check on the markets before the stop stories. right now the dow if you are just joining us down almost 200. briefly below below 2,000.

s&p we have not had a loss in about a couple months. that's noticeable as well. that's blown through the 50 day moving average. and the nasdaq down 1 and a half%. keeping an eye on brent oil as well. down to 92.57. and henry what a day you picked to remind us of your call last year. not predicting a 30% drop in stocks but alerting folks to the possibility it could happen. >> based on valuation. you cannot use to it time the market unfortunately can which i have to remind myself when i look at it. but if you are looking at historically predicted valuation measures like professor shiler's pe ratio and others, it suggests we should be prepared for at least lousy returns over a decade if not a sharp pullback. >> do you think this is it? >> it's possible. today is just a good reminder that stocks also can do gown and when they go down they can go

down fast. we remember from the last downturn, 2007 and 8 you wake up in a hurry. >> the fact we even need a reminder shows the market has gone gone so long at this point. stocks in -- elan musk gave tesla a head start maybe it was the right valuation for the long-term and not the short-term. but we're seeing quite a few moves today based on the idea that there is going to be a pull back. >> while that is true, these stocks have been enormously resilient. a lot of people were calling for amazon head after the last earnings report saying investors ran out of patience with it. turned out not to be the case. apple was in the dog house for a long time and it is falling today. but to the levels of just earlier this month. >> and by the way, still up 20% plus, people are pointing out for the year. >> yeah. and so we've also got the holiday season coming up.

and a number of unknowns that could go either way. positive or negative. there have been geopolitical shocks but none yet have thrown the markets off. so this is one day. i think we got to be careful about making too big of a call. because again of the resilience. >> do you think something fundamental has changed? in the economy, in go -- anything that suggests? >> i think we're getting a lot of conflicting signals and investors for a long time have been willing to over look all of the geopolitical stuff. but hey what's next. so it's possible. but what i would say to john's point is again this goes back to 2007 and 2000. it is not a light that turns from green to red suddenly everything's terrible. it happens incrementally. and stocks drop a little and then a little more bad news. they drop a little more. and suddenly bad news and starts to come faster and faster. that is the way real draw downs

develop. and if this were it, we are not going to know at the time. >> go pro is still up 1% today. >> there we go. see we're fine. >> we've tended to put them in the baskets of the stocks that move in tandem together. but this is a stock that's pretty incredible in the way it's been able to perform amid all the critics coming out and saying the stock was too rich. and even when the entire nasdaq tape is red it's up 1%. >> i'm no expert on the valuations but on most measures you look at. go pro is expensive based on what they themselves have said they expect to do. if you believe that this stock is worth close to 80 bucks you think they are really going to shake up not just the action camera market, not just the camera market but that they are going to do something -- bonnic eyes? i don't know. so we'll see where it goes. >> is that in time for the

holiday season. >> in time for the holidays or maybe next year. maybe next year. >> it's hard to remember that it priced at 24. that is a long way from 80. meanwhile another misfire from apple. a rare move apple did pull, a possible kblich that could turn your phone essentially into a brick. comes after the bending news of the phone. bend gate. making way for ios 8.2 as the fix and will release it as soon as it reese ready though in the next few days. no comment on the bending how to from apple. >> this is a series of the errors going back again to the nude celebrity hacking and we're assuming it's hacking or the just guessing passwords. same thing. that was a block on the company. and this now the software issue is really surprising that wasn't caught. and suddenly came out. when it got into the wild.

and bend, so long as it is not too many phones and as long as as people are complaining that if you really, really lean into it with muscle you might be able to break it. look they are not designed to be sat on and jumped on. it is normal use we should be worried about. >> i would argue there are a couple of types of problems that a company like apple can have. there is a serious problem where you put out a bad product or there is a really serious a glitch in the way that the product works. and then there are fixable problems. with ios 8 they designed it in such a way that you can role back to ios 8 if you downloaded 8.1 and had a problem with it. this the bending issue, if it indeed is an issue, you can probably put a case on the phone and keep it from getting warm enough to be more likely to bend if this is an issue. which we don't know. consumer reports and people like appem are looking into it.

so i don't think this is one of the types of issues difficult to recover from. probably the to icloud more serious in the long-term. >> i lost can you count of all the people on twitter who are saying who buys a $600 phone and doesn't by a 35 dollar case. >> i think the issues is the cases were in short supply when the phones first came out. if you got your phone ship like john did, he was looking for a case. couldn't find one. if then you have it in your pocket, etc. interestingly with the review lineups they actually handed out cases towards the later end. so i think maybe they know either the phones are more slippery or maybe more designed to have cases. >> right. we're keeping our eye to see if it is an effect on sales. we'll b find out. >> we'll see soon. finally we want to talk about

yahoo shedding some line after hours yesterday on what it will do with its alibaba stake. don't get too excited. all it really said is the company enter into a one year lockup restricting the sale of remaining stake in alibaba. it did off load some shares in the ipo. there is speculation over what it will do with those proceeds, north of about 8 billion dollars not including taxes but guys this takes at least one question about potential dilution down the road. it says, okay in a year we could see yahoo start to off laid load its stake and this also puts rumor mongers at the strategy at bay. you know you have at least a year before you start talking about some of the big companies that it could be buying. >> you tell me you guys. does this create kind of a sunday death atmosphere around yahoo where okay we've got a year to do whatever it is we're going to try to do. whether activists or anyone else

to influence what they do with the rest of this they don't already have access to t. >> they are saying they aren't going to sell for a year. so that explains of the is valuation action. where alibaba came out last week. and look, yahoo's core business is valued negatively. this is ridiculous. even if you just assume conservative valuations. now we know okay if it is locked up for a year. a lot can change. that stock could be worth a lot less if things go badly for alibaba by the time they monetize it. so you don't know. but they do still have a pile of money. they got a lot of kahhish from the off load. >> they plan on giving at least half to shareholders. so that does whittle away at the pile. but if you look at the chart, since september 19th it up some 30 odd percent. so already quite a run. and not only the idea that it could be longer until there is a big acquisition or transaction

but mark mahaney actually cut his rating on the yahoo from sector perform to outperform. he can move the markets with his reports. he says basically the baba effect is done and he thinks investors will choose to reward themselves with facebook or priceline or other more highly growing stocks. >> baba is 90. on day one was 99 and change. the argument was if we can get through the fed and baba markets have clear sailing. that hasn't turned out to be the case today. >> not totally unclear either. just a couple bobbling days. and we haven't had any for so long. >> dow hasn't fallen 30 points since july 31. my favorite stat in terms of the alibaba was jack ma. he said he could go to macy, buy

everything in the store and then buy macy's. >> when we come back a rare interview with the former ceo of microsoft. the new owner of the clippers, steve ballmer. his take on the microsoft. and the dow and the markets continues to struggle here. just above 17,000 at the s&p at 1974. we'll be right back. machines will be sprayed to be made.

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welcome back. in washington attorney general eric holder is announcing plans to step down at attorney general. one of the longest serving obama cabinet members. we're now told the white house has added an event at 4:30 in the state dining room calling it a personnel announcement. we are expecting though that that is where we are going to see the president and the attorney general together talking about the attorney general's tenure and giving some sense and indication of the president's feelings for him. and possibly some sense of what might be coming next here in washington in terms of who some of these leading candidates might be. all that speculation will unspool throughout the morning and we're looking to assemble a short list as convictiquickly a. >> thanks. meanwhile as clippers new owner steve ballmer is making a lot of noise on and off the court.

we sat down with him who spoke candidly about the software giant. >> when ballmer stepped down as ceo in february he had a lot of fans and critics. and now how does he himself grade his performance. >> let me tell you how i grade my own time. i joined as sort of a number two guy. we had 30 people and 2 and a half million in revenue. i left we were 80 billion and a 100,000. how would you feel? by the numbers i feel pretty good. are there a couple things i would do different? of course. and i kick myself on those things because i'm a guy who pushes to be his best. but when you look at it as a body of work, we went from

nothing. really created had pc. that is an amazing thing. we created personal productivity as people know it today. we revolutionized the data center and the way it organizations work and we didn't quite get the mobile thing right, yet. >> right. >> that is kind of the record in a nutshell. >> i want to give you a chance to respond to critics. they will say revenue tripled o but missed big trend of mobile and social clout. is that fair. >> anything anybody says is fair. they are all welcome to say what they want to say. no one company will do everything. i mean, the key isn't to say hey that company should do everything. apple is a failure because they missed social. nobody would say that. because they are having great success. we have had great discuss. do i believe with 2020 hindsight i see how we could have

navigated particularly mobile better than we did, yes i do. and do i think the company is on that path? yes. am i an enthusiastic shareholder because of that? yes. on the other hand did we do a few things right? absolutely. and do i wish i'd done a few things differently? absolutely. >> some candid insight there on his hits and misses at microsoft. he added though that you can't really judge any tech ceos performance for at least 5 to 10 years after the fact he says because of how long it takes to get ideas, products and services into the marketplace. guys, back to you. >> thanks so much josh. interesting to see him talk about microsoft as a comparison to apple. microsoft on one hand missing mobile. apple missing social. do you think those two are comparable? >> you know, i think his broader point was that and i thought he gave a candid answer when i asked. you did get nailed by some

critics on missing these big trends and his opinion was listen, we couldn't be everything to everybody. i thought he was honest about how, you know, in 20/20 hindsight he would have tackled the mobile challenge a bit differently but clearly proud of his kpliraccomplishments there. i thought he tried to give a kind of mixed report card of his performance there. >> nice job with that interview there, josh. and i wrote a piece a month ago saying ballmer is underrated and pointed out some of the things he pointed out i think. windows continues to be to the top pc operating system. t linux was supposed to dethrone it. apple. is ballmer feeling pretty good like maybe he's going to be judged differently now that he's no longer in the top seat like former presidents tend to feel? >> i think he was clearly proud,

john of his accomplishments there. not only what we did at microsoft. he clearly still is very passionate about microsoft today. when i got him talking about the products out there today he got very passionate. as only ballmer can be. very emotional and very intense. and clearly very proud and clearly has a lot of faith faith and strategy that nadella has put in place. ballmer thinking he's on the right track. >> good stuff. i know we'll get more all throughout the day from that very interesting interview. meanwhile the markets accelerating their losses. nasdaq is down 76 points. the majority of that loss of course comprised by a move in apple shares. we'll continue to watch the markets. nasdaq and s&p breaking through their 50 day moving avrng. much more when we come back. you know what my business philosophy is, reynolds?

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as the saying goes, the names you know. they are the ones having the biggest impact this morning. dom is going to break that down for us this morning. >> technology shares are quickly becoming a big component for traders and investors. the biggest ones are taking the biggest hits and the larger caps are having a bigger impact on dragging down the market. one percent declines in apple, google intel are the most influential. but there is shifting sentiment on stocks that have been volatile performs long island t alongside the broader market. zillow for instance. shares have drifting lower and down to about 121. a quarter of its market since

mid summer. pandora also down in early trading. a stock that's had a strong umds momental earlier in the year and as high as 40 and a half a share. now a as high 24. that's 40% drop. and another performer in today is fire eye a stock that's seen a very high high and now is low lower lows. the 3 and a half% drop today adds onto the second half of this year. as a result fire eye has lost two third of its value since being at $97 earlier this year. and go pro. we noted its record high yesterday in trading. after setting another record high in early trading the action camera maker shares are sea seesawing. sharply higher to start. and now still this positive territory. if it closes positive it it would mean five straight days of gains and another record high.

and this stock went public at 24 bucks a share and it's over 80 now. and that means that it's a $10 billion company. back to you. >> incredible statistic. thanks dom for bring us that. the dow now down 200 points. the last time we saw that was a 300 plus point drop on july 31st. europe a different story. simon hobbs is here just ahead of the close in the u.k. and across continental europe. and simon, what are you seeing there. >> a lot of red. an awful lot of red. and what's happened on wall street has shocked europe. they were trading higher because of the euro. but this selloff in the united states has transmitted its way across the atlantic. it is a broad based selloff right the way across most of those sectors. media, financial, food

retailers. trefl and leisure in negative territories. the minors are up there t. pricing in china and iron ore. some of the the oil majors are also lower again. but really you could go to any sector in the market and see it in negative territory. it is worth mentioning what is happening to the euro. and let me bring you back to that. we've spoken through the program about the strong dollar and the effect that could have in this country. from a european perspective what you are seeing is this weakening of course of the euro which is now down 8% since the highs in may. and what appears to be happening is the mario draghi is becoming more and more possible at the qe moving forward. and second time this week he was talking about altering the size and composition of unconventional interventions. remember he has said he wanted to expand the balance sheet of the ecb from 2 trillion back to

3 trillion euros. the problem is he can't get the banks to take the money on the present way they are trying to get it back into the economy. you could arc the only way really he can effect the european company is by driving that euro lower. and that is precisely the effect happening at the moment. back to you. >> simon, thank you very much. when we return an update on facebook's landmark deal for what's app. and we'll continue to watch the tape. dow down almost 200. who's going to do it? who's going to make it happen? discover a new energy source. turn ocean waves into power. design cars that capture their emissions. build bridges that fix themselves. get more clean water to everyone. who's going to take the leap? who's going to write the code? who's going to do it? engineers. that's who. that's what i want to do. be an engineer. join the scientists and engineers of exxonmobil in inspiring america's future engineers.

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well the bears clearly have the ball this morning. the nasdaq down more than 1%. let's get over to the nasdaq. bertha is there. >> hey carl. i was talking the traders saying is this? and one saying you have to bear in mind nz the rach rosh hashanah holiday today. and that may be contributing. not likely to see a bounce back in his opinion as a result of that. nobody to come in and buy. we are seeing a tech led slide with the nasdaq.

the nasdaq 100 among the worst performers. the russell getting hit hard. everything it took yesterday is giving back today. and really at the center of this is the apple decline. apple falling below 100 since the first time since september 10th. actually below 98 really. apple, is accounting for about a quarter of the slide on the nasdaq big caps. accountable for about 18, 20 points to the down side. so that is the big drag. but we are also seeing other big names following suit. interestingly, you know, we're watching alibaba and yahoo. yahoo getting cut over at rbc. mark sees limited upside. keeps his target at $44. but alibaba now down four straight sessions. still up from the ipo price but dragging down other chinese internet names with it. and also look at the chip sector. the chip is really where a lot of this tech wreckage is

happening today. we're seeing a very big bullback in names like san disk and biotechs as well. they have been the big gainers so if people are taking profits today that is one of the sectors they are really going to look at to really take some money off the table. back to you. >> bertha, thank you very much. speaking of the nasdaq names. facebook may finally be getting the eu approval it needs for the whatsapp approval. they will unconditionally approve the deal for the mobile messaging app. facebook in a tough tape today. only a dollar off the 52 week high of 78.80 or so. how much unstaped -- what are we are going to find out what about the whatsapp synergies now this is getting closer to completion. >> interesting for mark zuckerberg now that he's made commitments he is going to let them operate independently.

but one key strategy is to go to international carriers and emerging markets and say we want to give you facebook and whatsapp for free. i think if he's successful at that using facebook and whatsapp as a one-two punch in social and in messaging it creates a platform for things including commerce they might want to build down the line. >> think we are going to see it overseas first? >> whatsapp's base is overseas mainly. but it's growing fast and it's a different kind of the business model. yorng you are going to see them suddenly change but it is not going to be a contributor for facebook's financial performance for a long time. >> it is interesting to see regulators raise specter of the potential involvement in some of these facebook deals. they took a hard look at the instagram deal. >> and facebook saying we'll negotiate with you in europe if you want to clamp down on us a

touch to get your facebook in that space. >> they are trying to look at some of these companies as they are buying to see if there is any potential cause for concern. >> when you look at it, facebook has been extraordinarily good at avoiding antitrust issues considering the scale and influence they have. >> yes. >> and they put a lot of effort into that. and part is because of the privacy concerns early on. they got on that quickly with some very senior people in washington and elsewhere and that's helped them. >> all i know is early sanberg is a comic book character. we've seen drones the size of a computer screen oar a small car. how about size of a 747. that is what facebook envisions although they say they will be much much lighter and across the pond dhl beating at out amazon and others. delivering medicine to a small island in the north sea. also front page of the

washington post is the faa arguing the faa will allow hollywood studios to start using drones in film production. >> finally we begin to enter the current age. the reality is taking hold. these things are real. they are going to be with us. >> only in closed sets, the article makes sure to note. that said the faa is currently evaluating the rules that are in place. so the fact they are willing to give a little lee way to the n cinematic usage might say something about what they plan elsewhere. so maybe just build a big dome around everything and then we can use them. >> i think that's fairly what we're beginning to see. controlled environments. agriculture is expected to be the biggest market starting off. because you own your own farmland and you want to inspect it. you can use drones there. and once we see the uses and benefits there, then advocates will have a strong case to say here is a benefit we can get economically. >> what do you think catches fire first?

drones or the wearables? >> on can consumer market wearables. there will be a lot of action around the watch. i'm still skept kl but so far a lot more hype in wearables. >> and enterprise. >> it is a great application and there will be others. probably a long time before we get packages delivered. >> don't ask that john steinberg. >> thhe'll say both. >> the dow is down over 200 points. s&p having its worse day since july 31st. something we haven't seen in several months. that said we have rick santelli in chicago. what are the traileders watching, rick? >> they are watching everything. but what they are watching the most is still europe. cause/effect is a dicey topic. do we know if it's russia, china, syria, durable goods t federal reserve. nobody knows for sure. but keep this in mind, when you

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coming up top of the hour, lots of i problems for apple but do they translate to real worry for investors? and investing in the riskiest

markets on earth. should you and the heat is on for our battle trader of the year. that and muche the selloff. the levels you need to watch for stocks you should look to buy on the halftime report. >> thank you very much. #tbt. to the original blackberry product, back to when the product was known as research in motion. that takes young back to blackberry 850. introduced in 1999. a pager that supported e-mail. this week blackberry rolling out the 4 1/2 in square shaped passport. u.s.a. today's at bay this morning, the limited hardwa-- innovative hardware. blackberry is still around? and that point about not liking the software is not what they were shooting for, john. >> not at all.

i think first of all, that throwback, the device, the blackberry pager was just brilliant. a brilliant use of the bandwidth they had and what people actually wanted to do with their devices. that is the zeitgeist that blackberry is trying to get back here. the software has pluses and minuses. it is useable but some people who reviewed it also they had complaints about it. i thought it was relative will i smooth for my expectations but i think what they need to do is make their case to the enterprise behind the scenes from here. >> surprised how many people just anecdotely said i miss the keyboard. i miss it. it's frustrating on what whatever device you are using. >> and this is still a nice keyboard. >> over to rick. >> these are days i really like being on a trading floor. granted had trading floors aren't as wild as they used to be. but there is a lot of energy down here specially in the

energy options market today. many never trusted certain aspect of the hft and when i asked the reasons they would say something so easy to understand. you heard me say it. nobody can be that good. you can't have entities that trade for quarter after quarter with so few losses. well when it comes to equity markets everyone wants to know why we are down 205 today. cause and effect as i said in the tease is difficult. but we really don't need a reason. take the same analogy for hft. this market and i understand that we had an overcompensation most likely that put us down at the levels of the march 09. but to think we've gone so long without a major correction is just not normal. so think we need a specific a ha moment to see a correction in equities probably misses the point at least from a traders perspective. one thing this morning that put me own alert is something i haven't heard anybody talking about. show a 24 hour chart of the dax.

we know europe is at the epicenter of potentially much weaker economic outlook than anybody had in the second third and fourth quarters of last year when the mantra was oh europe is getting better. why do i bring it up? because a full 15 minutes before the stock markets opened up in the u.s., the dax moved to negative territory and a very quiet slightly up session and just starting to gain momentum. and if you open that chart up of the dax you can see year to date yes we are not flirting of the level os 9,000. we're flirting with areas of the 94, 95. but the point is mart is what's going on why europe when you add in the weakness in china and the finance minister story earlier in the week, yes it is important but there is a lot of finance ministers in china. the real point of this is gaining momentum is because of the potential changes a the very top. the central bank of china and

when you look at commodity prices a lot is explained by a stronger dollar. but when you think about the carry trade and add in that the dollar could be stronger because our central bank is moving in a different direction than everybody else, all the pieces come together. my final word that we've seen major flattening on the big down movement in stocks pushing interest rates to the lowest potential levels since the 9th of september. we haven't closed under 250 and 10 since the 8th of the september. but the suffice to it say the flattening is potential sign that the -- the moral of the story it is still an on going reason why you probably don't have to worry about treasury rate zooming too much because the economy has anxiety and it's playing out totted in the equity markets. >> rick santelli. over to morgan and a quick

market flash on sketchers. >> one of the few companies moving higher in today's session. shares gaining after the sneaker released an upbeat report on the state of its business. in response to a buckingham research note yesterday that questions shares and sent stocks tumbling. up now about 4 1/2 percent. >> that's having a positive effect today. when we come back, stocks seeing their worst days since july. the dow is below 17,000. squawk alley will be back in just a minute machines will be sprayed to be made. and making something stronger... will mean making it lighter. one day, factories will work with the cloud. one day...

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. talk about unfavorable market conditions. tough to go public on literally one of the worst market days of the year but travel port has done it and managing to trade to the upside after debuting this morning at the big board. >> u.s. stocks across the board still seeing red. the s&p and nasdaq at lowest levels in over five weeks. the dow and s&p seeing the first 1% drop since july 31st. rus, thanks for joining us this morning. september historically not a great month for stocks as it is. but do you think there is something bigger going on that is leading us to be so volatile this week in particular. >> i think there are a couple things.

the first thing is that while volatility has picked up quite a bit it is important to recognize it is still belong long-term average. so less than a spike in vo volatili volatility. more about normalization. there two things causing that one close to the point where investors are thinking about a first fed hike. ha change in the monetary environment typically associated with more volatility. second we've seen escalation in global geopolitical risk and after several months of ignoring that investors are taking notice. >> and there is this idea, rus, that as soon as if first rate hike does become clear as yields start rising we could see risk be off in a big way out of emerging markets and yet you are writing this morning investors should still be look at putting stocks in emerging markets and particularly in asia. >> our view is that this is a normal correction. i don't think anything that is

changed in terms of fundamentals and longer term we do think investors, particular those without weight in emerging markets should be using this weakness to add to long-term positions. there are going to be bumps along the way but what's happening now is return to normal volatility. the vix at 15 is still less volten than it was ten years. >> but a question about valuations. i want to take it to tech specifically. i was in a room with john chambers yesterday, where he said particularly the high multiple stocks you need to be careful of he thinks in this environment. >> yep. >> michael dell was saying he thinks, hey the stocks with high multiples could be dangerous. they are too expensive. some of the smaller ones for him to want to pick up. so as you see the volatility, even if it is returning to normal, given the escalation this prices of some stocks, what should investors do? >> i completely agree with those statements. look, i don't think the market at the aggregate level is

overvalued. there are pockets that are very expensive. small caps are very instructive. down about 2 and a half percent year to date. off nine or ten percent from highs. to my mind the valuation on small cap is much more extended than large or mega cap. so if volatility is picking up if we are going to more normal, investors want to think less about momentum exposure and more value exposure. >> so when the question is posed then, rus o, do the buy this dip? even if you carve it up into piece, what spaces to look at first? >> i there are a couple. u.s. large and mega cap are still relatively cheap compared to broader market and also likely to hold up better a as the fed normalizes monetary policy. asia, one of the markets actually doing well the last few months is japan. and one of the reasons is that japan is cheap on a relative basis. you have some catalysts there in

terms of buying by pension funds. that's another part of the world that i think offers relative value in a market that is generally somewhere between fairly valued and expensive. >> you take a flyer on energy giving the blood letting its had for the quarter at least relative to the broader market. >> energy is interesting. one, again cheap compared to the broader market i don't necessarily believe the selloff in the long end is justified. there is a lot of uncertainty still in the middle east. u.s. oil production will start to decelerate next year. and as you get to 90 on brent you are going to see a floor on oil prices so energy is another part investors may want to give a second look. >> and what about financials? we talked about how yields racing and eventual rates rise too banks will be the first to benefit. but how long until we see some of the fruit being born? >> well i think the banks in

some of the larger financials, i think will be the beneficiaries and to me the key variable to watch is loan growth. we've seen some rebound already particularly in commercial industrial. and in that continues the theme makes sense because they are going to benefit from seeing a continuation of that trend. >> rus from blackrook, always great to get your perspective. thanks. >> thank you. >> when we come back more on the market selloff. the dow down 214 points. relative to the rest of the year, ft is now saying this is the 7th worst day for the s&p in 2014. we'll be right back. this is a burrito made with chocolate, soybeans, and apricots. what kind of chef comes up with this?

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two wearables are battling it out to take the tech crowd mantle this week. ella moon is a smart braceality and it's up against the mota smart ring. a smart watch that just sits on

your finger. it is thursday so poll closes in one hour. cnbc.com slash tech crowd. tomorrow we'll reveal the winner and see carl how the viewers feel about the jewelry wearables space. >> yes on a day where there was a positive analyst callout on tiffany. apple is down after the company says it was pulling its latest software update. it's going to be hard to separate, john sort of the news and its influence on the stock from the broader markets influence on the stock. >> yeah it is. but again, you know, it is a holiday today. i think we are in that period where there tends to be a lot of the fear spread about apple, whenever they come out with a new design there is always this fear. give it a few weeks. we are going to see some numbers from apple in the earnings report in october that are going

to be illuminating and we'll hear about how sales continue to be effected or not by the hype and the fear. >> u.s.a. today called this the cycle of hype and gripe. essentially a cultural right of passage to get the products and then start complaining about them. >> it's a blood sport. and the journal looks at gross margins, 48 in 2012. 38 in 2013. is that going to sacrifice something in the december quarter? >> i'm not too worried because apple has been i think very careful about the technologies they have use in this. not as if they are using entirely different display technology o there. there have been larger phone for quite a while. and you got to remember, 10 million of these things sold. if 50 of them have a problem. what percentage is that?

it's very small. >> you just don't want those 50 to be 50 people with twitter accounts. >> which increasingly it's hard to find. but we're not used to this kind of scale. so it is kind of the windshield crack phenomenon potentially. once you see it everybody thinks they have one. >> finally. big carr said he's leaving after 15 years with the company. all eyes on transparent, the new original series available on amazon. silly me thinking it had to do transparence and metrics over at amazon. >> you knew that had to be a typo as soon as you read it. interesting to see a executive departure in a key area for amazon. >> after changing qcfos. >> exactly. a question for investors. >> in the meantime keep you eye on the broader market. dow is down 224.

s&p down. 1969. >> and holding above that right now. >> generally seeing we've seen some attempt at a bounce but nothing credible on that front yet. >> if only we knew what traders were thinking at a crucial time like this. >> i think that's why we goth to half. >> welcome to the halftime report. the starting lineup is the stephanie link. john and pete nagerian. josh brown. the selloff. the nasdaq having its worst day since july. s&p and dow both down more than 1% at this hour. technology and energy leading the declines. what is behind the day's selloff? we can't ignore the dollar because the index is four year highs. >> up again from the may lows and what is surprising to me is that