points, 39 points. we had a worse point day and that was back on the 3rd of february of this year when we were down by 40 points. there you go. we're off by 38 points on the s&p. the dow is down by 323. thank you for watching "street signs," everybody. closi "closing bell" coming up next. what a day. welcome to the closing bell. i'm kelly evans at the new york stock exchange. volatility is certainly back in these markets. >> that is for sure. i'm bill griffeth. a daily occurrence these days, when you think about it, today in part attributed to comments by mario draghi of the ecb. so let's review. janet yellen got a 270 point rally yesterday but mario draghi gets a 350 point selloff. >> i think the market's verdict is pretty clear on the different directions of central bank policy. >> who they're most concerned

about, right? >> probably most concerned about german policy makers. in other words, not the ones at the central bank. it's mario draghi saying to the european governments, it's up to you. you have to take the ball here. meanwhile, in the u.s. the deficit is down below 3% of the gdp. >> we'll go into the crucial final hour of trade. the dow down 319 points. at the low it was down about 345. the s&p down 38 points today. we've taken out obviously yesterday's lows. now at 1930 and change. the nasdaq composite is down almost 1.9%. that's down 2 1/3%. 1071. we've also been watching oil which today closed at a two-year low. the price of wti crude here in -- for delivery around $85 a barrel. now i see it at 84. in the electronic trading it

continues lower. >> you know from the electronic trading figures, the futures, that we can follow oil is in a bear market. down 20% from its highs just this summer. so talking about that. keeping an eye on interest rates. let's get to it now in our "closing bell" exchange. joining us kevin koran, jim lowell, heather hughes from sun american funds and our own rick santelli. so welcome one and all. jim lowell, why the selloff here today? how would you describe, summarize this market? what's going on? >> well, first of all, i don't think it's all that surprising that the markets are pulling back. i think it's surprising it's taken them this long to do so. obviously comments from draghi about secular not cyclical issues. attending the eurozone where we think and have been talking about it sliding into a mild and recoverable session. looked a little bit closer than they did 24 hours ago. ultimately we like what we see.

the smaller cap indexes are in correction territory. that's where you'd expect the brunt of the selling to be. the megacaps are basically holding their own, giving up a little bit today. so long as this market sells on fundamentals, we think at the end of the day it will be a buying not selling opportunity. >> peter anderson, warren buffet said on monday's big selloff he was in buying on that day. are you buying on these selloff days as well right now? >> well, as you know, i usually do. i have to tell you, this week has been kind of perplexing. i think it's been one of the most challenging weeks for managers. >> yes, glad you said it. >> just in general. let's just layoff some of these things. i don't know about everybody else, but i was really surprised about the minutes. i didn't expect that kind of direction that the minutes took. then of course you get -- >> what surprised you the most

about the minutes? they were dovish. they showed concern about the rising dollar, the slack in the allegra market but what surprised you? >> well, you know, the fed is supposed to have what's called a dual mandate, right? they're supposed to be looking at unemployment and interest rates. in our office we're now saying well maybe the fed has a quad mandate beside those two factors it's also looking at the u.s. dollar and the european conditions. so it's kind of expanded in our opinion. >> that's not true. it's all -- look, the dual mandate, all that comes down to the fed trying to gauge growth and react to it, you know, correspondingly, inflation, too. they would be crazy not to take the global considerations into effect and take the move of the u.s. dollar into effect, peter. >> point taken, but i'll tell you this, that the first and foremost in my opinion is the u.s. economy, and, you know, kelly, i think u.s. economy is doing just fine. i expected them to say that the first half of next year there would certainly be, well, not

this strong words but that they would still consistently hint that rates would be rising. they would raise rates in the first half. and that was absent. then today you get some of the regional presidents like the one out of st. louis kind of backing -- backfilling that and saying maybe we do need to raise rates. >> but, peter -- >> it's very confusing. >> peter, i would say that yesterday's rally does still make the case in point that the market is correlated to stimulus or keeping rates longer -- lower for a longer period of time. do you think that correlation still holds true as we continue? >> it's a correlation that is frustrating to me because i think that what we should have is a steady drum beat of increasing rates to reflect the fact that at least the u.s. economy by almost all measures seems to be getting stronger, and i agree with you. the correlation does not make sense to me right now. >> if the economy is getting stronger, and i hope you're right, what is concerning to me

is that oil may be a leading indicator of the economy. it tends to move before stocks, real estate, bond indication if the economy is getting stronger. the fact that oil is at two-year lows right now is somewhat concerning also. i want to know why oil is not participating. you're seeing the energy stocks take a hit today and to jim lowe's point, the consumer staples are down also but relative to the rest of the market you're seeing that flight to quality, the safe haven and the megacap large value sector such as the consumer staples. >> kevin coron, why don't you take that oil question and what it says. >> yeah. >> energy stocks certainly have suffered as a result, but it can be good for the economy obviously especially for the consumer here. >> yeah, in fact i think that explains all of this, the two-speed global economy we're dealing with. you have europe that's essentially growing at zero or not growing at all, germany contracted in the last quarter, you have japan trying to stoke growth, you have china growth is

decelerating, meanwhile you have this island of improvement here in the united states. so what you have is weak global growth that's affecting the commodity markets including the oil price. there's a lot of supply out there and then the dollar is explained, too, by that. >> right. >> the fed needs to let the dollar strengthen somewhat to put some purchasing power in american consumer's pockets to buy from all of these other places around the world that are struggling. so this is a very interesting dance. it's somewhat different than what we've seen in the last few years. i'm not at all surprised to see this causing confusion among investors. then, again, getting different messages out of the fed like we did today from stanley fisher and jim bullard versus yesterday's minutes, this is all very confusing. >> by the way, just to interject. stanley fisher, the new vice chair of the fed said today -- he put a time frame on the phrase considerable period of time. he said it's anywhere from two

months to one year. >> and you can imagine how much differently those comments could have moved markets against a different back drop here. the original clarification of six months created a big selloff over the summer before she walked that back. he now trying to expand it. any time you put two months out there. rick santelli, let me pick on a phrase kevin used. island of improvement. can the u.s. remain this island of improvement if the global economy continues to weaken? >> well, i think that investors can think that. i think they're going to be in denial if they don't already know the answer. you know, super mario draghi has been demoted to a luigi plus. i'm sorry. but when he made a statement today that we will do whatever it takes, i'm paraphrasing, the market is only interested in define we. i still say quantitative easing american style may not be something that mario draghi

could pull off but it doesn't matter. and as to the minutes, my guests just nailed it. we all heard that meeting. what was the main center piece of the press conference in the minutes? i'll tell you what it was, about considerable period. i don't recall the dollar strength or the european weakness being a mainstay, but it was a mainstay in the headlines yesterday. i think the fact that the market whitewashed all of that shows that what's going on in europe, they have an export economy, we have a consumption economy so where's the transmission? think credits, think banks, think spanish, think italian yield. think of their loan portfolios that glow in the dark and it's a bit toxic and there's your transmission. that's what we need to pay attention to. keep watching the dax and the cac. it didn't hold the bounce. the dax is under 9,000. watch how fast it takes to get to 75 bases points on that boom.

>> i was going to ask you about that. for those who don't know, the ten year in germany hit an all-time low today. what was it, 89? >> or 83. >> 86. 86 but it popped back up a bit. >> so you think it goes to 75 and what does that do to our own ten year? how much lower? we're at 228 or 203 or something today. >> you know, i think u.s. rates can continue to go down. i know leon cooperman was so smart today. he said historically rates need to look at 2 1/2 growth, add in the inflation. that's where the ten year should be. where would stocks be if we had a ten year 2 1/2%. i think we'll continue to spread against european rates, not one for one but if they go lower i certainly think we'll go lower. if equities go lower, i suspect u.s. rates will go lower as well. >> jim lowell, just a question as well. rick, when i asked him if we could stay an island of improvement here, he said i think we already know the

answer. your answer seems to be yes in that you're behind the weakness because you say this has been a selloff of fear and not fundamentals. why do you think the u.s. economy can continue to hold up its momentum here? >> well, we'll get a very good read not just in terms of rates of earnings growth but also guidance. that will be absolutely mission critical. also, it is clear that the fed, like us, should be a little bit worried about a stronger dollar, strengthening dollar, its toll on the exports. we continue to look at the battleship ballot blue chip sheets. they have cash in the coiffeurs. this is a buying opportunity so long as the fundamentals hold for true long-term investors. for traders, this is a very different kind of marketplace where you really do have to trade amidst confusion. for long-term investors, this is the same scene that set the stage. >> everybody stay right there. we have a treat for everybody.

you'll love the closing bell exchange. we're going to extend it into the next segment because of what's going on. we're going to add one more person. we'll add larry kudlow to the conversation coming up in a few minutes. >> all of that with 50 minutes to go. the dow near the low. off 332 points on some pretty decent volume. the nasdaq is off almost 2%. art cashman telling us 1925. 1929 is the level right now. even a day like this cannot keep a good ipo down. check out hub spot. it defied the downturn and it is trading 20% above its opening price today. it's an online marketing software company. the ceo will be joining us exclusively in just a few minutes. also on the docket, a trio of heavy hitters. hershey ceo and ragu rajan. market reaction all ahead.

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if you're just joining us here, if you wanted to see if yesterday's rally continued, the answer briefly, no. for various reasons. down 318 points. the leader to the down side, down 2.3%. i haven't seen what the transports are doing. they're down 200 points as well. so minus signs very much across the board for the stock market today. >> on the same day that oil is selling off significantly. one of the weakest links of this entire space and continuing our special coverage of this massive market selloff. larry kudlow joining us along with our "closing bell" exchange. good to see you, larry. earlier this week you were telling everybody, stop losing your heads. what do you make of this action? not pretty. >> this is a great time to add to your 401 ks and iras and whatever accounts you have. terrific time. there is no recession. there is no inflation.

energy prices are coming down. king dollar is nice and hefty and strong. all of that's a good sign. you saw unemployment claims this morning, jobless claims, what were they, 287,000. >> right. >> businesses are investing. all i'm saying is the fundamentals, corrections come and go. october's a pretty tricky month, i get that. just ride it out. add to your retirement account. >> but, larry, is this selloff about our economy or is it about the european economy? is mario draghi signaling that he's pointing to member nations that they have to do their part to solve the problems on the continent right now? isn't that partly to a good degree why we're selling off and why we're seeing yields continue lower on the ten year? >> you know, bill griffeth, all the years i've known you, let me just say the answer to your question is i don't know. okay? i have no idea. look -- >> so noted. >> -- mario draghi is going to

do whatever it takes to keep europe solvent. if that means pumping in more money and buying bonds no matter what the germans say, draghi should probably increase the money supply. europe has a lot of other issues. they tax too much. they spend too much. they entitle too much. we could go on forever. europe hasn't grown in two decades. let's be honest. the more interesting question to me, our biggest export partners, i want to make this point, our biggest export partners are canada and mexico. don't forget that. and a half at that trade is 1/3 of our total trade. and you know what, canada and mexico are doing pretty darn good. so, again, i don't know what's cooking today. i can't figure it out. >> i'm glad you brought up the jobless claims -- >> stay with it. >> peter respond here. please tell us as well whether you think this is the right opportunity for people who might have been on the sidelines for the last leg higher to get involved. >> well, you know, larry

itemizes a lot of positive things, right? and i have to agree with him. let's just take some of that stuff in a vacuum. if i told you, say, two or three years ago that by now we would be almost at the verge of declaring ourselves energy independent, we would think that's fantastic, right? and so the fact that energy prices are decreasing for some reason today we think that's a bearish statement. but if you isolate that, that is a very, very bullish statement on a number of levels, right? you've got a tax on society, for instance. so that will be a decreased tax level and you also have independence from the other countries in terms of generating energy. so i think it's all very positive. for some reason the market has taken a very negative tone on all these items he's mentioned. >> because of central banks. the fed doesn't want a strong dollar. they don't want the average guy to be able to buy more. they don't like when prices go

down. they are a central bank. who are they working for? banks. that's why. >> look, rick san -- >> it does not help their inflation expectations, larry. i want to get back to other panelists, when you have king dollar, you don't have the inflation rate that the fed wants to achieve right now. >> good. good. >> the down side to that. >> no, that's terrific. >> larry, you don't want them to keep stimulating. >> they'll keep the cheap money policy in place until they get it. >> that's the wrong answer. >> i don't think so. by the way, i don't like what the fed says. i agree with my pal rick santelli. the fed, they look at labor market indicators, they think too many people working causes inflation. that's really stupid. but you know what, i'll give yellen some credit here, how about this for a first? she is ending qe and they are going to gradually and slowly raise interest rates next year. and that is exactly what they should do.

if i had one wish in the entire world for the american economy, i would say slash the corporate tax rate which will give the fed cover to snuggle up their short-term rates and normalize. by the way, the republicans are going to take the senate and they're going to put a corporate tax cut on the president's desk early next year. >> larry, it is -- i completely agree. it is absolutely unpatriotic, not that we are undergoing tax inversion, but the unpatriotic stems from having the highest corporate tax rate in the world. >> right. >> we used to be at least lower than japan and that's no longer the case. >> hold that thought. >> that's where i think we are being unpatriotic. >> hold that thought. >> no, that's a great thought. i think i just heard a nobel prize winning thought. >> there you are. let's bring it back to the individual investor. kevin caron, is this an opportunity to buy or an opportunity to take some money off the table and take some

profits if you have them? >> i think it's an opportunity to buy but i think you want to be looking for very high quality stocks because if you think about what's happened in the last two years, this market has roared ahead relentlessly. it's been led by lower quality, high beta stocks. you add selectively to great companies with fantastic balance sheets, consistent profitability, reasonable price, all that stuff is good. keep in mind, the market is only down something like 4% from the peak. most of the data is moving in the right direction. this is why we're fundamentally bullish. we're tilted more towards equities. i would look at price and look very closely at quality of the holdings in the portfolio. more investment is coming. that's a very positive thing for the future. >> can i make just one -- quick stock market math real quick. at $120 a share you're at 16 times earnings, all right? that's not ultra cheap but it's

not very expensive. at 16 times earnings your forward earnings yield is about 6 1/4%. that's a very hefty premium over other interest rates and so forth. that's why i can't get excited about this. look, markets go up and down, dipsy doodle, dipsy doodle. >> it goes up, larry. we have a long ways to go. >> we have to go in a second. jim lowell, isn't it fair to say that the reason we focus on the market on a day or a week like this, a lot of times when we, the people writing the articles can't figure out what's going on, the information from the market itself tells us something. this is the news, in other words. i guess -- so it's less about sort of is this justified and more about trying to figure out why this is happening and what predictive power it may have. >> fair enough. it's pretty clear that why today's selloff is happening is directly correlated to fears that the global slowdown is going to have a contagion effect on our own relatively slow

economy. bank of japan, while they may not ride to every rescue, they're clearly capable of putting a pro found safety net under long-term equity investors. that's why i don't worry about walking out on today's high wire although it was clearly wobbling a week ago. >> all right. everybody, thank you so much for sticking around. we enjoyed the conversation. larry, dairy say it's always fun having you on being the straw stirring the drink as well, if i may use that metaphor, my friend. >> okay. any time. >> see ya later. thanks. we've got 35 minutes left in the trading session. the dow's come back to some degree. i guess you can call it -- >> we're only off a hundred points right now. >> you can call it progress. the level that art cashan identified, 1925 on the s&p has held. we're at 1932. >> he will be joining us in a moment. >> yes, he will.

we're watching hubspot. here at the new york stock exchan exchange, up 23%. the online marketing software firm ceo making the case for his company. how he plans to put $120 million raised from this ipo to work. that's straight ahead. also ahead, more information on the whiplash stock market. we'll be joined by hershey's ceo and sprint's former ceo and india's bank governor. goal is to grow. gotta get greater growth. i just talked to ups. they got expert advise, special discounts, new technologies. like smart pick ups. they'll only show up when you print a label and it's automatic. we save time and money. time? money? time and money. awesome. awesome! awesome! awesome! awesome! (all) awesome! i love logistics.

welcome back. not every day you see a decline of 300 points in the dow. we seemed to have a couple of those lately. i think this is the 12 triple digit move bill in 18 sessions, something like that. volatility has picked up. the vix is up at a level of almost 19 and declines across the board especially in the small caps and energy. >> all the stats we've been keeping have been written down in pencil. we have to keep erasing them. dominic chu is moving up the board today. >> the big loser today in all of that sea of red is gap stores. this is after the surprise announcement, the ceo is leaving the company. they're off by 12% on the day. then there's a positive health story. gentiva health services is bucking the news and kindred healthcare will buy it. it's $19.5 per share.

they're moving higher in today's sea of red. a tough day for energy stocks as oil prices hit their lowest level since december of 2012. the majors, exxon mobil, chevron, also other names like anadarko, halliburton. >> two companies making their wall street debut. mol global plummeting at $12.5 a share. they're down at $8.30. a different story for hubspot. it soared as much as 31% after the marketing and sales company priced 5 million shares at $25 a share. the market volatility not just for established stocks but, kelly, bill, for the new issues. >> great point, dom. let's talk more about hubspot's first day of trading. >> joining us cnbc exclusive, brian halligan. i saw you looking over there.

>> i was looking. planning an ipo is like planning a wedding. it rained today but you still stayed dry, didn't you? >> that's exactly right. it did rain. we're thrilled to be here. thrilled to be here on the exchange. >> why are you going public? what do you need the capital for? >> we're growing fast. coming out with new products. doing tuck m and a. we grew 48% last quarter. business is growing good. we want to keep going. >> are you immune to the economic conditions? things seem to be slowing down right now no matter whether it's here or overseas. are you going to be affected by that? >> i think we'll be in good shape. the idea behind hubspot is your success is much more like the width of your brain than the width of your wallet. we help people use their brain and pulling customers in. i think it works either side up or down.

>> what's the need that you're solving out there and how has the grateful dead helped? >> we help customers grow. the grateful dead have been immensely helpful because they're the ones that have decided we're going to give all of our music away for free. people are going to share that music widely. when they like the music, they're going to start coming to our concerts and buying the tickets. the grateful dead were very early on the idea of giving away content and using it as a magnet to fuel customers coming in. >> written a book about this which is why i bring it up. >> marking lessons from the grateful dead. >> are you an ad agency or are you the company that's going to kill the ad agencies? >> neither. we're software platform. oftentimes agencies do their work on top of our platform. they'll build a new website, blog and do the social on behalf of the customer through the software. >> we had the head of one of the large agencies here recently.

we talked about whether or not it's much easier for small companies who can't afford an expensive ad campaign to use technology that's available to do their own advertising. i suspect you're a part of that. >> it absolutely is. it's a great time to be a startup. great time to be an attacker. the internet is sort of disproportionately helping the attacker and the person growing. the person on the way up relative to the defender because, like i said before, your success is more about the width of your brain than the width of your wallet. you don't need a lot of money to get attention online and pull customers in. the dynamics have changed. >> i just looked for you. it's still up 23%. you're okay. >> thank you. >> brian halligan, co-founder of hubspot. >> thank you for being here. half an hour to go. >> go ahead. >> 273 point selloff, that's not as bad as it was heading into the hour. we'll see again lately on the

close we've seen things accelerate one way or the other. we'll check in with market veteran art fashion. we'll see if he thinks we're in for a rebound. he's seen it all. we don't get nervous until he does. >> this is typically when we check in with him on the commercial break. we're going to do it on the air for you folks. plus, find out how hershey's ceo is determining if this market is a speed bump? plus what about the coco prices. 60% of the coco comes from west africa. we'll talk about that coming up. try a new way to bank, where no branches equals great rates. watch this. sam always gives you the good news in person, bad news in email. good news -- fedex has flat rate shipping. it's called fedex one rate. and it's affordable. sounds great. [ cell phone typing ] [ typing continues ]

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i'm supposed to tell you what's going on with the markets. >> art, you talked about volume. it looks heavier than usual. >> a couple of things are going on. we're trying to bounce here. the early look on closers is neutral. if it stays that way, you'll get a little room here. what happened was we came in this morning, another round of bad economic data out of germany. they sold off. they were trying to get their

circle the wagons and along came mr. draghi. he said he couldn't perform any further easing until they got fiscal reform and everybody knows they're not going to get fiscal reform so that was an empty plate that he brought and we sold off pretty heavily. >> but we're in a period of this volatility here. have we completely forgotten about the fed minutes from yesterday? i mean, can we have it both ways here? >> not forgotten but draghi -- the threat there is less about straight what it means to europe but a divergence between the central banks. they were all rowing in the same direction. if he's not going to be able to move his little skiff along, then it can present problems to the fed, maybe even to japan. so with that uncertainty it popped up. and then you have the background noise, which is negative. ebola. >> yes. >> there were stories around today about what happens if it comes to the western hemisphere.

fear that isis is going to take that kurdish town and then maybe move on baghdad. that's not directly pushing things down but it is inhibiting some risk taking. >> real quick you said 1925 level to watch on the s&p. looks like we're holding on 1935. why is that level so critical than any other? >> well, we tested it. we did 1926 last thursday. we did 1925 in the more recent low so the real theory would be if it came down, hit 1925 and held, you might really get an appreciable rally from that. people would say, wow, a three-time test, that really looks good. we didn't get exactly to it. we got within hailing distance, 1927, i think. i would have liked them to get to 1925. i'm check on market on closing. >> we look forward to that. >> thank you, art. appreciate it. despite today's selloff,

consumers are looking at our next guest's company with halloween quickly approaching. we are talking about hershey. >> ceobilbrey is joining us. corporate responsibility is why you're here. we have to talk markets here. what do you think is going on with the markets, j.p.? >> well, you know, i think that we're pretty positive, actually, you know, about the things that are happening. we have a long-term view. you know, we go out. we try to execute hard every day. for our company, we offer accessible indulgences. so really products that are for the mass consumers. people may give up a lot of other things, but they still have the ability to afford a hershey bar, participate in a category. the category is done well. >> coco prices we all know have gone higher. what many people may not know is where the coco comes from. and we've highlighted here that 60% of the world's coco comes from west africa, not liberia,

but ghana and the ivory coast. are you concerned at all about the price going even higher or even just getting the coco out of that country -- out of that part of the world if god forbid the ebola continues more? >> sure. one of the things that you may not know is, is that coco is a pretty structured market. we have the ability to buy forward quite a bit and, you know, we've had a very good rainfall, very good crops this year and a significant percentage of our 2015 needs, in fact, are already in our control. they're in the u.s. or in the other places where we'll be processing that so from a supply chain standpoint, we would not expect any interruption. obviously we're following, you know, the ebola situation very closely, but we wouldn't anticipate any supply issues. the markets pulled back a little bit on those fundamentals down

around 3,000. >> right. >> been higher than that. >> and just -- speaking of the supply chain, that's what you're in new york for, the commit to a responsible culture and supply chain forum. so how important is that issue to you? and i guess, j.p., should people expect higher prices for their trick or treat candy this year? >> well, you know, halloween is basically sold in. we've had great response from retailers. merchandising is good. pricing is not going to change. in fact, on our seasonal events we sell well ahead so, you know, we shouldn't see any impact from pricing to the consumer really until next year. we did have a price increase this year, but the way that that works is is that the instant consumables tend to go up right away but the balance of the brands and merchandising is protected. the consumer won't see anything unique from a purchasing

standpoint. >> she's already thinking about mother's day next year. well past halloween. j.p.bilbrey. >> you're very smart. >> we know how all of that works with you guys, manufacturers. thank you for joining us. appreciate it. >> hey, thank you so much. you bet. bye-bye. 18 minutes left in the trading session. the dow looks like we're going to whoevhover with a decline. >> big markets. dom chu will show us how volatile it's been since october 31 1st. later levin portfolio manager is telling us how he's navigating these choppy markets. >> $200 million to sell so a little bit to the sell side here. former ceo of sprint dan hesse will give us his first interview since being ousted. that should be interesting. stick around for that on the "closing bell."

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>> it may not look it but over the course of the past week it's been a spooky october. for the past week we're just about flat. we're down .7 of 1%. that doesn't tell you about all the ups and downs we've had. this is, again, going to be the third straight time we've moved up or down by at least 200 points in the dow jones industrial average. just for reference, the last time we had this many days at least of these kinds of swings, 200 points or more, was back in august 8th through 11th of 2011. that was a monday through thursday. the reason why that date is important is because the previous friday was a day that standard & poor's downgraded the u.s.'s credit rating from aaa down to aa. that caused all the volatility last time. this time we're not seeing that kind of catalyst. back then the dow was around 11,000. these big moves meant a lot more in percentage terms back then. take a look so far at what's been moving the way. leading the way is caterpillar,

chevron, johnson & johnson. exxon mobil and goldman sachs. focus on goldman sachs, johnson & johnson and maybe exxon mobil and cat to a certain degree. those have the highest prices in the dow. the dow is a price weighted index. the higher the stock prices, the more weight the stocks carry. these guys leading to the down side. now if you look at our market ped come to ter, how many steps we've taken, up and down, up and down, it's like a game of chutes and ladders. we've seen the market move by a total number of steps, or points if you will, of around 2,000. that means we've gone up or down by quite a bit. down 360, up 425, up 344, down 316. it's been a very volatile october. remember, some traders have been expecting this, kelly, bill, because remember we heard from howard silver over at s&p dow jones indices. of the times they've posted gains or losses 6%.

25% have come just where, in the month of october? back to you. >> not our imagination. art cashman came by and signaled. the amount to sell in this market on the close is growing. we're up to $500 million. >> down 322 points. do we hit 340? >> 345. >> near the low. not quite there. i think it was monday or tuesday where we saw the previous sharp decline pretty much on the bell. keep it here. 12 minutes to go until then. later we have an update on the deadly ebola virus in america. that's another thing we're watching very carefully. stay tuned. (vo) rush hour around here

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from new west. >> i apologize. so caught up with the market. >> we've been discussing things. we'll catch everybody up. >> the trade index, it measures the amount of volume going to up stocks versus down stocks. there's a lot more volume going to stocks. it's usually a negative indicator for the moment. we're not really bouncing here so that would make a lot of sense. >> what are you making of this, larry? the thing i've been asking everybody, are you seeing this volatility as a buying opportunity or a selling opportunity? >> well, we're going to have great buying/trading moves. we've had a lot of those over the last couple of weeks. one thing i noticed is we've had three consecutive days with two standard deviation moves back to back, three consecutive. that hasn't happened -- that's only happened four times in the last 30 years. '87, 2011, 2013 and today. 12 total days the market's been down eight of these 12 with a

lot more volatility. >> you're expecting more volatility. >> i would get ready to trade this market. i fear, real fear, we're not quite at capitulation fear and sell the rallies for the next two weeks. >> we're pretty oversold. we're talking about exploration production stocks. we're seeing 20% declines in seven or eight trading sessions this month in some of the big shale names we've seen. obviously there's a concern that these companies become uneconomical when oil gets near $80. oversold, you talk about standard deviations. we're maybe three standard deviations. >> the best trade on the board in terms of oversold, the coal names are a spectacular buy down here because if the republicans take the senate, you're talking about pushing back on obama's clean air initiatives. that's a big win for coal. >> a lot of people wouldn't want to make a trade predicated on that especially the way the numbers look lately. >> we think we're at 65, 70% chance of the gop taking the

senate. right now the number is 53 seats. >> we'll take a quick break. we'll bring larry and bob back. we'll see how we do when we get to the closing bell. >> family dollar after the bell. earning season gets underway here. you're watching cnbc, first in business worldwide. e financial noise financial noise financial noise financial noise

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quick recap of what has happened today. yesterday, 270 point gain on the

dow. today selling. just intensified as the day went on, in part because of those comments from mario draghi looking to members nations of the eu to help him revive the economy. here we are near the low of the session. down 345 a couple times. now down 300 points as we head toward the close. the ten year yield, yields we haven't seen since june of last year. we were at 228. what about oil and are you looking? is that a contrary buy right now for energy stocks do you think? is it time to look at that?

oil has a way to go. it has 8 dozen. >> $8 on the down side. oil in the 30-year bond, 30 year is about to break 3%. 30 year telling us that china, japan, and europe are all in recession. if you get a 30 year recession at 3% and oil at down 2%. >> demand for oil overseas is such that it's going to bring that oil price continued lower he here. they'll come over and buy our treasuries. >> small caps have been the most annihilated. i want to start looking at the

regional banks. >> there's a contradiction going on. very hard to reconcile what we're seeing. you should be u.s. centric. we know the u.s. economy is getting better. dropping oil is great news for us. >> that's the problem, everybody has been saying that for 6, 9, 10 months so everybody is crowded into the u.s. trade and as the world slows down, that slowing down the u.s., you have a crowded trade and more value, potentially lower earnings as the world slows down the u.s. >> even as oil continues, it would seemingly benefit the most is moving sharply lower. >> there you have the ebola factoring in. you have all kinds of strikes at laguardia. that's hurting the transports. but i'm looking at some of the regional banks versus the big banks over the next 12 months because of regulation.

that's a value place. >> 1945 is at a low. larry, thank you very much. bob. thank you. that's it for the first hour. you do not want to miss the next hour. it's the second hour of the "closing bell" with kelly evans. thank you, bill. welcome to the "closing bell." another incredible day at the new york stock exchange. the dow jones industrial average going off the decline of 331 points or almost 2%. in fact, the other major average is hitting that 2% mark with the s&p giving up 40 points. just about the worst day since early february. in fact, the very dejan net yellen took office. that was the other day we saw decline on the s&p. the russell 2000 hit hard. bill said, let's try to make

sense. nom nomiaprins, michelle, how much of this is mario draghi's fault? >> i think a lot of it is mario draghi. he has been saying forever, i can do my part, but when we have economies in europe that are calcified due to too much regulation, too many labor problems, they can't grow. i can't fix a problematic economy. i can fix monetary policy. so they've got to do their park. >> do you blame angela merkel then? >> i would blame the italians, the greeks, the portuguese. all of them. even the germans. blame all of them. but mario draghi also said price stability is his mandate. that works when inflation is happening and when deflation is happening. he's going to do what he needs to do. it just might be scary as we get to that needing to do point. >> i see you shaking your head,

andrew. i want to say so everybody knows in terms of deflation, prices are 0.3% year on year. >> inflation has been on their target for 20 months. they have a problem. they have a big problem. if people don't understand inflation, very simple. why would i buy anything today if i know it's going to be cheaper next week? i won't buy a car today because in a month it will be cheaper. a house will get cheaper. >> hang on, everybody. we have a news alert with dominic chu back at headquarters. dom. >> friend of corporate divorces continues here. we've got some news on symantic will split itself into two publicly traded companies. the board of directors has unanimously separating. one will focus on security and one will focus on information management. the separation follows an extensive business review of the company's strategy and

structure. they believe creating two stand alone businesses will allow them to maximize their growth opportunity and drive greater shareholder value. symantic following the trend of value into two companies. symantic will be one company to focus on cyber security and one focusing on information management. at the close they're down 2 1/2% with the rest of the market. we'll see what happens on this news pending hold. back to you. >> symantic had been rumored, speculated, that they would be next after hewlett-packard. comments on that? the broader trend or if you want to take us back to the markets? >> let's talk about everything, kel. that's the way i roll. symantic bounced off of that 18 level when the ceo resigned. you can see this stock has woefully underperformed. this is probably a good thing.

who knows, i mean, intel has mca if mcafee embedded in there. ibm is comprised basically of five publicly traded companies. i think you could spin two of those off. we're in an environment where you can absolutely see that happening. in terms of the broad jerel market when i was with you last i said 1970 was when support becomes resistant. look what we traded up to yesterday and failed at in the s&p. i've been in this sort of 1904 camp. we're obviously closer to that than we were yesterday. >> okay. >> i've been saying for a while that the russell has been the warning sign. the weakness in the russell absolutely continues. >> yeah. we saw by the way in terms of companies weighing often the dow, it was across the board. we had names like caterpillar. we had names like visa and goldman sachs. how much of this is about whether the u.s. in the midst of everything we've been talking about continues to see strong growth? >> i don't think that the job

today is just about what happens in europe. there's been slow growth in europe going on. this is just another plea for help. zero interest rate policy, cheap money, bond buying in the u.s., negative interest rates in europe, questions about bond buying, that cannot continue to plug the holes of an overall economy that simply isn't growing. that's what's coming in. most of the s&p 500 are using their profits to buy stocks and pay dividends to their shareholders to keep markets up. >> here's the thing that makes this all so confusing. look at the jobless claims numbers today. incredibly strong. i understand that that has a lot to do with we've already had quite a few layoffs. there isn't a lot of supply to go. in the last year, that's one of the strongest periods we've had since 1999. there is some genuinely strong

data. >> it is. you have geopolitical risk in the ukraine, ebola concerns, earnings coming up. >> speaking of ebola, we have developing news with a man jab beers. what can you tell us? >> hi, kelly. wanted to give you an opportunity to listen to some comments. they were made earlier in the week by general john kelly. he's a ma ryan corps general head of u.s. southern command. he made comments about ebola and the potential spread into the western hemisphere. >> there's no way we can keep ebola in west africa. it's going to run its course for some period of time. if ebola breaks out in haiti or central america, i think it is

literally barring the door in terms of the mass migration of central americans into the united states. >> general kelly went on to say in those comments earlier this week that central americans and south americans who get infected by ebola if that happens, which he thinks is a possibility, will be fleeing either the fear of ebola or the actual infection itself and wanting to get to the united states as a safe harbor or as a way to get better treatment and better medical facilities here in the united states. he says that's the nightmare scenario. he thinks it may be just around the corner. now that contrasts fairly starkly with the reassuring message that we've been hearing from the white house including in the press conference in which a number of white house officials said the united states is fully prepared to handle this. no discussion of course from the white house about fears of mass migration from central and south america due to ebola. i spoke with the white house about this. they said that they continue to feel that the chances of an outbreak of ebola on any significant scale here in the

united states are slim but clearly differing points of view and people who are preparing for whatever might happen. >> ayman, thank you for bringing that to us. the gist of his comments have been contributing to the selloff. that was ayman jab beers from washington. let's get people to weigh in. dennis, first of all, how concerned are you and how concerned should investors be about ebola and the threat of it spreading further in the west as the general just indicated? >> well, i think that investors have to be concerned about it. i think this is getting ridiculously overplayed. i think the media has run amuck with it. general kelly made these comments several days ago. i understand why they have to make them. the odds of ebola becoming an epidemic are minuscule. compared to what happened in 1918 with pandemic flu, compared to other problems we've seen

4e89 wise in the 19th century, early 20th century, ebola is a small problem. it could become a large one. right now it's weighing heavily on investor's psychology. never discount the psychology. i think it's overblown. >> but the point there, dennis, being from what you're saying, any time we see the selloffs, if it's on, for example, fears of ebola, that should be a buying opportunity because it's on fears, not fundamentals, is that right? >> no. i would tell you right now things are fearful enough, the manner in which the stock market traded today, i have to tell you i came in this morning after yesterday's rally and bought a little bit. within the first hour i pitched it immediately because we didn't respond the way we should have. this market the way it closed this afternoon is still going down a long way, i'm afraid. i'm very dismayed. this is very discouraging. >> wow. how much further, dennis? why was today so discouraging? >> kelly, today the manner in which we closed today with a

reversal and opening weaker and closing on the highs, you should have followed through and there was no follow through. draghi's comments dragged upon this stock market egregiously today. and how far -- how much lower can it go? write this down. it will go down until it stops. it will go down until we get panick panicked. it will go down until the public throws up on its trades. i'm afraid today was a very discouraging circumstance. i trade only from my own account. i bought stuff early and i pitched it midday because we simply did not trade the manner in which we should have. this was a very, very bad trading session. >> let's bring in greg to see if he could give us a sense as to why, greg? what do you think is going on? is our market right to be so fearful. are the fundamentals they're so fearful about right? >> you have continued signs of pretty good strength in the united states. the recent data suggesting that job vacancies are declining. you have a labor market that

seems to be tightening up, reaching the criteria that the fed has laid down for when to start tightening. that alone is reason for people to pause and reassess the assessment that interest rates will be zero forever. that collides with bad news coming out of europe. we have an economy as big as america, as big as japan like circumstances and the central back trying hard to fix it but manifestly not able to do it all by itself. those two things i think are prompting people to ask, number one, do you have tension between the u.s. situation and the european situation causing the dollar to rally? you have uncertainty about the interest rates that create volatility. i think a growth question, fundamental question, can the united states continue to grow as strongly as it does when so many other major growth economic centers are flagging. >> kelly, i think everybody just needs to take a deep breath. take a look at the ebola virus. 36,000 people a year in the united states die from the flu. 8,000 people globally have the ebola virus. 4,000 have died.

we can take common sense precautions without shutting down the entire country and without the markets going into an absolute crazy, crazy guy rags. >> nahomi? >> i agree with dennis. the ebola virus has nothing to do with the downplay. you cannot plug general economic and regulatory holes with cheap money forever globally. that these problems if they are not fixed continue to exist. you can plaster for so long. the plaster comes off. the market comes down. >> what do you take in terms of a response? >> i think companies, for example, have to acknowledge the fact that they've used money to prop up their stock. we know that. they have to start thinking about investments. the jobs we're getting are low paying jobs. not increasing the average wage. people can't go out and buy things. the confidence will go down and there's a ton of debt that will have problems that will make the mortgage price which is one sector look like a component of what could be a ten year price. >> well, i'm encouraged now. >> very ugly. >> we're still bailing out 2008.

>> exactly. >>e haven't completely got over that. europe obviously has to get their house in order before the rest of the world. we'll have to see. >> wait for europe forever. >> forever. >> greg, do you think anybody in europe has the ability? i mean, can italy ever right its ship? >> i don't know. >> well, you know -- >> they're unbelievable. >> let's remember, italy has been in a quasi recession for a decade so i think that what tells us, that's a terrible situation for the italians. the world grew just fine the first part of that decade. italy can continue to come along without fixing the problems if we can get europe to grow if we can get the rest of the economy to grow a modest rate. we are not expecting barn burner rates. the situation in the united states, we've been getting up side, not down side based on the economy. let's keep something in mind. we've had absurdly low volatility for a number of years now. part of what's happening, we're trying to get a normal

volatility. that will push the equity risk premium up. that will make valuations come down. that may be a healthy thing. >> we have to go. greg, i will give you a hat tip. you told us weeks ago that's what was going to happen. we are seeing it play out. the ball is in the policy maker's court here. thanks, dennis and greg. everybody keep us posted on your thoughts on the markets. guy, we'll let you go. guy's coming up with "the "fast money"" crew at 5:00 p.m. they'll talk about the black hole the black gold is falling into. it's an energy wreck. investors getting motion sickness from the market volatility. what should investors be doing right now. how should they put their money to work? john levin is here to weigh in on that. that's next. stay tuned. to retire. not "if."

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and if enough weren't happening, now family dollar's results have hit the tape. come to is looking through it. what can you say? >> we're sifting through this. right now the stock is down by 2 1/4% on very light volume. about 1700 shares have traded. the headlines coming out here, first of all, family dollar reports earnings of 73 cents a share. that misses the average analyst

estimate of 77 cents a share. revenues, however, come in slightly better. $2.61 billion. analysts were expecting $2.58 billion. they also did say that q4 comp store sales were up .3 of 1% versus up .1%. so better comp store sales. also, no guidance will be provided for the pending possible deal with dollar tree on that merger and acquisition front. again, a miss on the bottom line narrowly. a slight beat on the top line. comp store sales slightly better. what we have here is a stock, again, that's down marginally about 2 1/4% but about 8,000 shares of volume. very light trade so far kelly for family dollar. back over to you. >> i think everybody is taking a breather, dom. thank you. speaking of that, my guest has been managing money for better

than a decade. john levin, ceo of levin capital strategist. i'm sure you can tell us. >> that is not what i came to discuss. >> we will talk aig in a second. >> i think listening and being on the exchange and being with you, i think for quite a number of months the market has tended to ignore certain kinds of problems and tended to move up while it emphasized some of the favorable factors, and i think in a broad sense it was overdue. the negatives are well known. so in terms of today, it wasn't startling new news and in terms of yesterday, the fed had a statement. but the market is incredibly building up its volatility based on is it the good news of continued easing and liquidity or bad news? it's not bad news but there are several things going on that are giving people pause. one is definitely the rise in

the dollar, which is shading revenue estimates for the major companies and shading earnings. it's known. it's been going on for weeks. professional investors are talking about it. if the market goes down, it's something people can focus on. the other thing i think is disconcerting is the phenomenal break in certain commodity prices which is a sign of weakness in china and some of the emerging markets. i've not talked about the international arena. united states business continues to be moving ahead. >> let me ask in a word before you go onto the topic you're here to talk about, aig. is it the kind of market that you sell into the weakness or do you buy into it? >> our general strategy has been for years is to buy quality weakness when we can. >> okay. >> and weakness is generally a buying opportunity on a selective basis. >> stay right there. the other story we're watching here closely is the aig bailout lawsuit. john with you earlier this week with some strong views. there's a lot happening today in this case which our mary thompson has been watching in

washington for us. today was former fed chair ben bernanke taking the hot seat, mary. >> mr. bernanke's first turn in the chair was far less cordial than tim geithner's. he appeared slightly combative and vaguely annoyed from the questioning from david boyce mostly providing curt responses like yes, sir, i don't recall. they got an exchange of aid package and loans and commitments. asking bernanke, as you understood it in 2008, did rates include equity? bernanke, i don't recall. they claim it violated their fifth amendment rights by not compensating them for that. geithner and paulsen is trying to paint the officials as forcing a slap dash agreement

that failed to properly value the company and unfairly punish its shareholders. as for why the equity stake was taken, bernanke did have an answer to that telling the court it was taken for the public saying, i know the equity component was additional compensation to the taxpayer for the risk being taken. mr. bernanke had to leave court around 3:15 today. he will be back tomorrow morning for more questioning and we'll be here to cover it. kelly, back to you. >> mary, thank you so much. we really appreciate following the story, one that john levin is following closely. you were one of those shareholders back in 2008. you remain dissatisfied with the handling of this entire episode, don't you? >> correct. in view of the time i'm going to make four simple points. the preface to the point is a lot of us believe despite the goodwill and the expertise and the problems of the man running the country, that there was an abuse of process and an abuse of law and favoritism was paid. the first point is that the

terms that were imposed on aig were punitive. none of the counter parties suffered the same thing. citi corp and the others, lower rates. different policies. bear stearns, citi corp, fannie mae. second point is we don't believe the law was followed. aig is different than fann fannie mae. aig is a state chartered company. on the new york stock exchange. many opportunities for a shareholder vote. the third point is the board was supine. once the money was in they could have negotiated better terms. >> right. >> and they could have had a shareholder vote. the third point i want to read from mr. paulsen's book, the beginning of it, because i think this characterizes part of the problem. mr. paulsen said the president bush asked me, he said, the very first words of chapter one, do they know it's coming, hank?

question mark. mr. president, i said, we're going to move quickly and take them by surprise. the first sound here is their heads hitting the floor. this is how fannie mae and freddie mac went under. this is the process that scares people. >> aig has nobody to blame except themselves. the federal government didn't want to put $182 billion of taxpayer money at risk. for aig and mr. greenberg to say, gee, these terms are too onerous. >> they could have followed the process. >> follow due process, absolutely. if you didn't give them the money they're gone and god knows what happens to the economy. for them to be complaining -- >> i agree on the complaint and there should have been a better process. the reality was aig was being downgraded. because it was downgraded it could not ensure all of the contracts it had with the

largest banks in the company and their co-dependent banks. the first chunk of money went to pay off the margin calls to these banks. >> exactly. >> it was a funneling through the banks. that should have been considered. the whole thing should have been considered. >> that is my point. in my view, aig first and foremost, everybody for the money through aig. that doesn't invalidate. less money would have been required if the terms of payout had been different. it's whatever the necessity, that didn't apply -- what should the interest rate have been, 20? >> it should have been something punitive as a moral hazard to make sure they don't engage in this reckless activity that got them into this position in the first place. the only question is what's aig saying, the terms were too on ner sflous we couldn't make good on our debts but the terms are too onerous. i think the lawsuit is frivolous but the federal judge will

decide. >> michelle. >> question about due process or general principal? >> they were incredibly onerous. i don't know if you recall, capital fled the market. people around the world said, oh, my god -- >> but they're not -- >> 14% interest rate. a 14% interest rate is probably what should have been charged. >> it wasn't because of the interest rate, the system was failing. the money was going out because the realization there was so much co-dependency. >> the interest rate -- the interest rate -- interest rate had nothing to do with saving the system. >> nothing. exactly. >> interest rate was a political judgment in my view before the election for congress and the politics. citi corp after the election got 8%. >> what was the alternative? should we have simply given them an interest free loan and you got in trouble in the first place. >> you know what, goldman sachs, you're not going to get 100 cents on the dollar. >> we are on the cusp of a global worldwide depression.

the government had to act quickly. >> did they prevent it? >> yes, they did. they prevented a global worldwide depression. >> we are still in it. >> if i can say respectfully, that is the most fabulous point because i believe always that legal and appropriate process is necessary. the governments just can't take arbitrary action under the thing that they say the system, picking winners and losers. >> but at that time i think it's different. >> no. and it's clearer how many years, five, six years we're pretty much at square one. john levin, you're so right. thank you so much for being here. >> i appreciate it. >> we'll have much more as we follow ben bernanke's testimony. right now we'll send it back out to dominic chu for a market flash. dom. >> it is seven minutes past when symantic shares reopened. one company is focusing on information management and the other on cyber security.

they're up 2 1/2%. again, we have a trade. shares are up 2 1/2% on news it will split itself into two separate publicly trade the zblps another breakup rewarded, dom. sprint stock seeing a down day today on this market. there's a new pricing plan, a new ceo trying to boost the company's fortunes in the wake of ceo dan hesse's departure. we'll get his take here exclusive exclusively. it is his first interview coming up since leaving sprint. also india's stock market has been blowing away the rest of the emerging world. this year a 26% gain has a lot to do with this man. later the head of india's central bank here to talk the global economy and markets in a rare interview. stay with us. s that capture their emissions. build bridges that fix themselves.

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welcome back. we begin with dominic chu. a very busy day, dom. >> very busy day. focus on the oil side of things. crude oil, west texas intermediate. it continues to fall in the after hours. in the evening session, it's currently trading right below or around $85 a barrel. it did dip below $85 a barrel since november 15th of 2012. almost a two-year span. oil down $83.71 right now. oil, kelly, trades below $85 per

barrel. west texas intermediate for the first time since november of 2012. back over to you. >> ouch. that's all you can really say for oil today for the markets generally. we're taking the pulse of markets in the economy. let's bring in somebody who was at the helm in the face of one of the major wireless companies in america. former ceo daniel hesse, welcome back. good to see you again. >> good to see you, kelly. thank you. >> how are things? and you can take that wherever you want. personally, with the u.s. economy right now. >> well, personally, they're great. i'm getting to spend time with family and friends and traveling. based upon the stock market today, i'm no expert with respect to the stock market, but things could be going a little bit better. the u.s. economy seems strong but there are concerns with the global economy as well as its impact on u.s. exports, isis, ebola, a few other issues.

things are good with me. >> i want to talk a little bit about what happened at sprint. do you have any regrets about leaving the company and what do you think about where it's heading today? >> well, from what i can see, i think sprint and marcel are making the right moves. it was a great move. we had a transition a little over a year ago. the transition was mutual and very amicable. i'm pleased with how sprint is doing. >> do you think the wireless market in the u.s. is competitive and needs to stay competitive? or should there be tie-ups allowed, for example, between some of the smaller players? >> well, from a pricing perspective, i think as the consumers look at it, they do see a lot of competition in the area of pricing. the real question is how sustainable is that if more consolidation isn't allowed in the industry. for example, sprint, t-mobile and others. at&t and verizon is very large.

they almost have monopoly power in the industry. there is a question long term if the level of price competition that consumers are enjoying now is sustained. >> do you want to answer to john lejare who love to take issue with the framily plan. his whole tact is to attack your strategy. >> that is john's strategy. john and i used to work together at at&t years ago. so i know him pretty well. >> so it does not surprise you? >> no. that's his -- that's his personality and, quite frankly, he's been quite effective. >> when you look at the product

that apple is launching here, iphone 6, are you going to buy one? is this going to continue to put pressure, create opportunity of other wireless companies, do you think? >> well, from what i can tell, and i don't have any inside information, but the iphone 6 has been extremely successful. actually, significant change from the 5s. i'm very happy with my current phone so -- and i'm not upgrade eligible yet. now that i'm not working at sprint i have to worry about things like that. >> yes, those percs do matter. . finally, what's next for you? what's on the docket? >> i don't know, i'm going to take six months or more just to relax. i'll use the time to think about what i want to do next. i haven't made any decisions. >> there seems to be no shortage of ceo opportunities out there lately. so much turmoil and transition in the u.s. space, u.s. consumer

space. daniel hesse joining us after he left sprint. daniel, thank you so much for your time. >> thank you, kelly. today's market selloff may be in part due to concerns about the global economy. up next we'll get a view about how important part of the world is when we hear from the bank of india. another 200 plus points in the tegtive. some of the hardest hit stocks today. we'll be right back.

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minds in economics. they're up more than 25% this year unlike here in the u.s. the reserve bank of india is resolving to keep interest rates high. they have a problem with the interest rate hovering around 7%. i see steve sitting down for a rare interview with the governor of india's reserve bank. steve? >> let's just say i followed his work closely, steve. for years. 4. >> the governor of theback of

india, thanks for joining us. >> we covered u.s. reporters at the university of chicago. we learned a lot from you. today the markets u.s. is one places strengthening. >> how important is that for the reach a skate velocity. what if it doesn't? we're hoping that the u.s.r there. unfortunately every year at the beginning of the year we think by the end of the year it'se1 d] took 2. >> one of the things i thought i knew about monetary policy, centrale1ñri] bankers could get inflation rate. i look?; around the world and i see key central bankers losing this war onñi disinflation or deflation. they can't seem to get the inflation. what's going on in the world in your opinion that these inflation numbers keep coming any lower while they keep putting on the accelerator more whe&i ié comes to monetary policy? >> essentially monetary policy has limits.xd every time you press the accelerator you pump more banks are not lending and increasing credit. then monetary policyçó is pushi on the strength. many countries are in that

situation now. (eqiq%=. we in india don't have that problem. >> i want to talk about india in just a second because it's astonishing how different it is from the rest of the world. i want to focus on the globe for one more question here. this issue of monetary policy and the ability to get traction and get out of the current trap that they seem to be in right now, do you think that europe and mario draghi has the ability place or are the politics just too difficult? >> well, i don't know. i thinke1 mario draghi has time3 europeju the political system has to take that forward through the reforms that are needed in what we have to wait and see ise >> getting now to india. one of the things you've spoken about is your concern about u.s.

rate hikes. is it still something that concerns you and the effectñi o indias3ñi you've said we have nojf longer cooperation. is that still true? >> we hit the temper tantrums in july of last year. since that time we've had two other episodes. argentina hadi] problems.e1ñi india came through very safely india was relatively calm at that time. my sense is we're in a much better situation relative to them because there have been major changes in india's macro stability. we've got a lower fiscal deficit, lower infuu)jjy >> what's your inflation rate? people aren't going to believe that. what is your inflation rate there? >> e17.8% as of the last count. >> everybody else is near zero. you have 7.8%. >> yes. >> it's been coming down? >> it's been coming down.

>> people are beginning toñi believe sometime next year you're going to cut interest rates. >> well, we believe that. i can'ti] enlighten them on tha now. as far as reaching our target of 6% by the end of next year goals, but if the data come in more friendly we'll be in a position to cut rates. if they're morexdñi hostile to inflation targets we'llñr have raise@çórates. we're deeply dependent as the fed would say. person here in the united states)s he's very pro business. when you,- at him, what is your view of the effect it will have on)8ocv the indian economy? stable governmentc is a very bi plus for india. there was a lot of politicalçó uncertainty that has been removed by the vast majority that the government has. secretary, it's a businessi] friendly government. it's working at the micro level, clearing out the regulations, dr(áh#ar as say taxation goes.

so thelpçó number of places whe they're trying toçóñr improve t business environment, they have a goal of bringingó[ india on t world bank scale down from 130ç on how easy it is to do business to the 50th country on that list. let's see how it works out. action is happening. >> thank you for joining us. i'll see you when you're back in chicago several years from now. >> thank you very much. >> kelly back to you. rock star in the economic world. rock star in the political world. exciting times in india. steve, thank you very much for that interview. some think ebola fears are' contributing to the worldzvxd mt economy. they're saying ebola could have serious economic costs.?; serious economic costs.?; we'll have more come back. stay with us. i see how you've been investing. setting long term goals. diversifying. dip! you got our attention.

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at london's airports. the cdc has advisedqe1 from blocking flights saying it will be counter productive. the virusxd is taking ane1 econ toll as well. the world bank says ebola'st( financial impact could be e1$32 million by 2015 if thei] epidem affects neighboring countries. it's severe in liberia, sierra leone and guinea could be catastrophic. key stakeholders met onw3 ebola today in washington. is based onñr the notion that w don't get these services in place, and if we don't, cases will start to move to other countries. 32.6 million is not because of the virus itself. 80 to w390% itself is the aversn behavior. people don't go to work, people don't go to school. no flightse1fá coming in. trade slows dowáf# >> cdc director tom frieden says

he's hearing from people thatxd there's been a reduction inok africa that are no way involved with the outbreak. this morning he compared ebola to another virus. >> in the 30 years i've been working in public health, the only thing is not the world's n aids. >> today, more than 8,000 cases of ebola primarily in liberia, and see jere leone and guinea and nearly 3,800 deaths which the world health organization says is underreported. >> well, that comparison to the aids is going to raise concerns. thank you, meg. that story is front and center in the market of the 300-point sell-off today. much more when we come back right back. (vo) watching. waiting.

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it was a rough day for stocks today, and it has been a rough week in fact. and dominic chu, who are the biggest lose toersday in theis ex? is. >> well, kelly, let's go through the whole thing the dow is wiping all of the big gains by the end of the day. and you have leading the way caterpillar, and goldman saks and john&johnson and walt disney and united tech. and again, vodafone this

afternoon, and they cut the rating on the mobile communication stock to reduce from the neutral competition. and the weakest sector in the s&p 500 was oil, and exxon and chevron and majors and anadarco, and halliburton and neighbabors also jcpenney getting hit hard in the third quarter session after sales warning, and so a lot of red letters across the board and especially in the energy stocks, kelly. >> well, mark hagan is not happy today. or maybe he is filling the boots with a cheaper jcpenney. thank you. >> and next week, we will have a panel with the review preview. we will be right back. [ male as was the first modern airliner,

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slide s. that good news for the people at the gas pump filling up more cheaply? >> i think it is, sure. and i think that it is. and the next three days every central banker known to man will be at the imf meeting and listen for the dutch and the austrian and finnish banners, do can they support mario draw gi or the fed? we will have real market moving headlines. >> yes, out of places that people would not expect? >> yes. >> naomi? >> we will see the down moves regardless of next week. they can cat tall iize catalyze with the u.s. and the global economy is not going to be restored by cheap bonds. it is going down. >> and do you think that the u.s. reserve was called out in the meeting? >> well, the reserves not being used in productive measures and he said it in a different way,

but $2.5 trillion for the banks to use and they have done nothing to grow. nothing. and that is the problem. >> and pushing the strings. >> well, i am dying to see the end of the aig trial and i can't see any scenario where they prevail, and it is the classic case of the kid who kills both of the parents and then cries that he is an or fa and it is the ultimate of chutzpah. >> and he is a lawyer. so encouraging the fiesty debate, i encourage you the go watch. and we will hear more from chief ben bernanke, and the fed would like to hear some thoughts on the monetary policy at this juncture. >> well a good lawyer would at least ask. what does it mean for us now? >> well, you need him on the show. >> and we are dealing with the legacy of all of this, and thank you for joining us this hour, and a 300--point drop in the dow

jones today. we head over to melissa lee, and what are you making of it? >> well, thank you, kelly. and talking about the big drop in crude oil which is in its own bear level since summer levels and we have an expert and you don't believe where he is headed next by november in fact. >> all right. over to you guys. >> all right. "fast money" starts right now, and live from the nasdaq marketsite life in times square, i'm melissa lee. and now the today, closing out all of the gains yesterday and closing out in the lowest levels in three months. and also ahead, we will have one underperforming internet stock that could be a safety play, and we will look at the ebola treatments, and separate the fact from the fiction, and of course, we start with the return of the volatility, and the s&p 500 is moving 1% in three straight days and more than a year that has happened and the volatile si rising 24%. dan nay