and the stock soars. normally the buyer goes down. market loved the deal. they did something right. >> i want to make a correction and sears is higher earlier today and slightly lower now. thank you for watching, everybody. >> have a spectacular weekend. "closing bell" is next. ♪ see what we're doing there? "anxiety." i'm kelly evans where anxiety continues to grip investors and an upbeating sounding song. >> spinning a little pat benatar for us. on the midst of a worst week since august and market today is enough to make you sick. i mean, up down, up down. people want the know whether we're in the midst of what will be the big one, the big correction that people are talking about. >> this market having a 5% correction, roughly the middle of this.

becoming the event t watch out for. 10% is where it's been a couple of years since we have had an event like this. >> by now you probably know i'm scott wapner today in for bill griffith. it was a white knuckle ride with triple digit moves and norm rather than the exception. >> certainly the case. take a look. calming down a bit and not at the nasdaq and tech stocks taking tonight chin. semiconductors, morgan brennan joining us now with how things look at a pretty wild week. >> a wild week for the nasdaq composite and closer to the close the selloff is accelerating here at the nasdaq. down at fresh lows. 1.4% so far for the day and on track to log a 3.5% loss for the nasdaq this week, the third consecutive week of losses for the nasdaq.

semiconductors leading. weak demand in china. that's pushing all of the chipmakers lower, including texas instruments, micron and intel, a large cap name that tends to drive the nasdaq's performance. that's fueling fears over global growth and that's in turn setting other large cap, other large cap tech stocks of google, microsoft and facebook into the red and making the tech sector in general worst performing on the s&p today. other big movers to the downside, a lot of momentum names. tesla. sedan didn't excite investors and others like gopro, net flex and priceline and investors are shifting out and into defensive plays like utility and consumer staples. major selloff in the tech sector. >> thank you. the chip etf down like 13%. >> intel getting crushed today. if what he is saying is true and

the end of the cycle and because of china or what have you, that's a big deal looking to the semiconductors as a leading indicator for the global economy. >> following that closely. in the other indices right now, dow jones industrials all over the place today. currently sitting at 22.5 to the downside. likely not to stay there as you know in this the last and most important hour quite often of the trading day. yeah. i got it done. done the show enough. i know what's going on. s&p 500 there down fractionally and the nasdaq where the focus as morgan said. russell 2000, down .5%. >> we want the foe if you think the market can rebound next week. go to cnbc.com/vote and with that said let's get to the guests and get into the confusing markets and "closing bell exchange" with tom lid dell, michael giac, walt zimmerman, patricia powell and

our own rick santelli. rick, i'm going to start with you today to put this week in context for us. is this the bond market's fault? >> you know, to put this week in context, let's start at the markets to pay the most attention to which's highly core lated with ours. dax at 9195. this week at 8788. down a little over 400 points. the cac last week, 4281 and change. closed at 4073. down over 200. so you get the idea. the 5-year is a winner this year. yield dropped 17 basis points! 17. 172 last week. 155 as the crow flies right now. listen. you in the top lead-in said confusing. to me when you have the type of bull market in equities that hasn't had any rollover, hasn't had any corrections, won't go down without a fight. that fight starts with the "v"

and called volatility. we are getting this market volatility at the top. i don't know. i think as an objective person with no ax in this one, no fl flesh in the game,i looks like market in transition and then seeing yields follow closely. >> michael, to rick's point, the vix at an 8-month high. yes, volatility picked up. the fear gauge is ripg. is this gong to get worse before it gets better? >> think the answer to that depends purely on the behavior of junk debt. which really is i think the source of what's causing this volatility. look at the way the spreads are widening, junk debt falling. treasuries rallying. that's the wrong combination of a bull market and i think that it is wildly underestimated how severe the deflation pulse continues to be in the system. we're seeing a questioning of central bank power, omnipotence and the last great bubble and the conditions are changing. one effect retaining of changes

and fighting the fed and employ risk management. >> okay. so we have heard conditions are changing. the market's in transition. patricia, what's an investor to do? >> i think you have to differentiate of what your investments supposed to be doing. if you're a trader for speculator and put your stops in along the way, probably stopped out in the last few weeks and i certainly was on my trades and speculations. but if you're long-term investor, you ride it out because what you're looking for is not to find the perfect top and perfect bottoms. you are looking to be in the right investments. now, to ride out a market like this, we have long been in large cap value and really been out of things like small cap growth because they don't tend to do well when you're 5 1/2 year into a bull market and economic cycle. >> tom, why's there so much volatility this week? the dow moved 2,000 points in

the last 7 trading sessions. >> it is a correction that makes your hands sweat a little bit but as kelly pointed out earlier it's healthy from time to time. if you took a correction in the past as an opportunity to put cash to work, especially in some of those areas that buck the trend, like morgan mentioned earlier. consumer staples, utilities. the xlu from the spdr and consumer staples xlt and doing quite well in the last three weeks in the correction. both have attractive yields and looking at the earnings so far, things look pretty steady. look at this as a buying opportunity for sure. >> buying. tom, are you talking about buying into the sectors working? or are you talking about using this as an opportunity to buy in the beaten down parts of the market not performing right now? >> no. i think for those looking for a more defensive play, this is absolutely the place to go. i don't have the guts right now to go in and buy chips at this

point or get into technology. but there's still a ton of cash on the sidelines in earnings and definitely in play. >> tom, good to see you, first of all. it's been a while. defensive sectors issue. i quote a -- co-authored a paper about the power of utilities and been on the road better part of two months presenting to chapters about these award-winning papers and talk specifically about predicting environments of a correction. when you see utilities outperform the way they are, treasuries on the long duration side outperforming and consumer staples and health care, we are all in on that. in a way no other equity sector fund is but there's a signal that something is wrong with the state of markets e s of percept and growth. the bond market is screaming. the s&p wildly disconnected. small caps continue to break. a quick point about the s&p and large caps, the last to fall. the fact that most people still have gains in large caps i recommend everyone look up the

term the disposition effect. studies show that people tend to sell winners first before the losers. the last one standing is the s&p. large caps and that is what's extremely vulnerable. >> let's come back to that in a second. i want to bring walt zimmerman into the conversation. you have heard michael lay out concerns. tom says maybe it's a buying opportunity. what are you doing right now? >> we think this bear is just starting to wake up. this week, the russell 2000 and the dax both gave a major sell signal from the confirmation of a huge head and shoulders top. the target's 22% loss from the high for the russell. actually, 28% loss for the russell and a 22% loss for the dax. we have the s&p sitting on its up trend line from 2011. and i think you have the market putting way too much hope in the fed's concern over a strong u.s. dollar. because when's driving u.s.

dollar strength is euro fx weakness and japanese yen weakness. both of which are completely beyond the reach of the fed to have an impact. >> so let me ask then because we're going to have to go in a second. michael, what do you think ends this? if you want to call it as walt just did a bear trend, what ends it here? taking a policy response? >> well, probably a credit event where you shake out and the age of the internet, everybody has so much information, everybody's a weak hand and trading off of noise and not signal. a credit event and junk debt spreads blow out like they did an hour before the dow dropped 1,000 points on the flash crash, that is your source of vulnerability. probably a buying point abe a lot of pain in between. >> you sound -- how long have you been more negative on the market? >> i have been of the deflation thesis since the better part of last year. i'm correct on the thesis with europe and trillions of out

there and not worked. the ecb and fed, it's the velocity of money. you cannot get people to spend despite the money out there and supposed wealth effect. >> patricia, do you want a last word in here? >> i really do. you know, i understand what he's saying but i don't think it matters. i think you are looking right now 71% of the s&p 500 is trading under their 50-day moving average. and it tells you that it's really the large stocks holding up the index. not a good sign. but it may mean a correction. the pessimism abounds. i was on a month ago and the optimism abounded hitting 2000 and now every bear coming out. we go through corrections and you need to have a plan do get through the correction. how you're going to deal with it and then what you deal with it at the end. you know, there's a lot of things that have been giving off signals for a fairly long time but now we're finally here. what are we off? 3%, 4% off the highs.

really, the chicken little of oh my gosh the sky is falling, i can't believe it. to be an investor you have to be able to take a little bit of wriggle room, some of the stuff may have come off aggressive and belongs off and now what you have is left to investments. >> everyone loves to buy and hold at the top. >> if we could our good friend sitting here, bull markets don't end because of old age. corrections don't happen because they haven't happened in a long time. they end because of recession and the u.s. economy seems to be picking up even in the face of what seems to be a dramatically slowing european economy. >> on top of that, scott, sit back. take a deep breath. let's wait for earnings. i mean, 80% of earnings either made, you know, hit expectations or tweeded expectations. those are going to move stocks going forward. >> all right. watching the nasdaq here going into the close. it's worsening. down 1.5% now. and we're closing our poll here,

as well. asking will the markets rebound next week. unscientific responses here, the answer seems to be yes to the tune of 53% to 37%. >> shocking. >> make of that how you will. i think that was rick. >> it was me. shocking. you don't want to hear three little words come out but i just think that we may. qe -- >> where's japan? >> holding up but you never know. >> everybody, thank you. have a great weekend. to the exat the present time that you can. we have -- >> i should also say that people who have overwhelmingly held that view in the last months if not years have been right. >> that's a point. >> a point. laugh all you want but that's the fkt. >> it is true. it's a great point. the dow off 41 points. this day, really first we have had in probably five, six sessions, scott, seeing some real die vur intelligence on the major indexes and negative at the moment and especially the nasdaq off 70 right now.

people are watching with about 37 minutes to go. why's the market all over the place? is it ebola? isis? what if this is about the market searching for a right price in a post-fed world? we'll examine that. why $80 a barrel oil could be the make or break number for u.s. shale producers and happen to a -- >> dave and busters gaining ground after pricing at the low end of the investments and they're delaying the ipo until next year. will companies go slow until things settle down a bit? we're back in a moment. go ahead and put your bag right here.

have a nice flight! traveling can feel like one big mystery. you're never quite sure what is coming your way.

but when you've got an entire company who knows that the most on-time flights are nothing if we can't get your things there too. it's no wonder more people choose delta than any other airline.

welcome back. we have breaking news regarded france's credit rating. steve liesman has the story. scott? >> s&p revising the outlook for france to negative from stable. saying that the french budget tear position is deteriorating. saying that they have doubts about structural reform. saying a recovery of the french economy could prove elusive and

that france's public finances might deteriorate beyond 2014. although that is not their base case. they do say that france has the ability to pay their debts. the economy's supported by their view of high income per capita and productivity but the company has quote receding fiscal space and that the french government and economies constrained real and nominal growth. raising the target for what they think debt to gdp will be in 2017 to near 100% from 95%. they had said back when they were previously downgraded that they would do so if that debt to gdp ratio rose and here they are revising the outlook, scott, stable to negative. not changing the aa rating, though. kelly? >> steve, what to do about it at this point? when you already have a raging debate as to whether they should do full-blown qe over this europe, whether it would even work and then today when you're

hearing from a number of big bank ceos including deutsche banc saying monetary policy alone can't fix the problems. the recent drop in europe will help. they need government action with real reforms. >> and s&p suggesting they don't have that room for that -- >> exactly. >> what to do? >> the issue is a two-pronged attack here. the fiscal side. three-pronged attack in terms of being on the fiscal side, in terms of spending with a lot of economists saying the cutting is not the answer right now for the economy but structural reforms, those that are medium and long-term effect are while the ecb does what it can on the monetary front. and you saw yesterday the markets, let's say, disappointment with what the president of the ecb draghi said saying we'll do everything we can to increase the size of the balance sheet and not necessarily to do anything different from what we're doing right now in the immediate future. >> all right, steve.

thank you. actually, stay with us. we want reaction of two of the guests with us. walt zimmerman and patricia powell. our bob pisani joins the conversation, as well. do you think this is why we've seen the dow take about 20 points, an additional 20 points lower in the last couple of minutes here? >> well, yes, could be a factor although there's some general selling pressure we have seen throughout the afternoon. this is very huge volume and echo steve said. i'm not surprised. mario draghi is saying for months now saying i can't do everything by myself. you have to implement structural reforms and now they have gotten called on it directly. doubts about strublt ral reform. they have to do political reforms, tax reforms, make it easier for companies to hire and fire people, as well. there's a whole litany. mario renzio in italy trying to deal with this for a while and frustrating for him, as well.

kelly? >> patricia, wouldn't you believe that this just continues the conversation and the action, frankly, that we have seen? assets come swoing into the uni states. perceived to be the best house in a kind of screwed up neighborhood. >> yeah. >> assets coming into equities in the u.s., assets coming into the u.s. dollar which is led to a tremendous amount of dollar strength over the last many weeks. >> absolutely. money goes where it is most welcomed. and, you know, you can look at what's been going on in france and i agree with everyone that said it so far. this is not a shock. when you have really poor fiscal policy, it's fighting your monetary policy and counterproductive. at the end in this case, fiscal policy's basically won out and worse and what they could do from a monetary standpoint. i really commend the honesty of draghi in the sense that he's speaking to -- truth to power. we can't do it alone.

canes would be sitting there saying the same thing. all the qe just doesn't do it alone. you have to get your -- get your fiscal house in order. tax productively. >> okay. >> i'm sorry. went too long. >> no. just saying that raising the spector of canes isn't the best way to get the germans to win them over. listen. walt, you just told us that you think the bear is just waking up here. your quick reaction to the news of this outlook for france being downgraded by s&p here? >> for a couple of years now the french stock market has had much more in common with the stock markets of, say, italy and spain than it has with the stock markets of germany and the uk so i think the s&p is just giving expression to the reality here. the way the french markets are going, they much more seem to belong to a southern european mentality than a northern european but it's not exactly that the northern european is shining. you have a major breakdown in

the dax. that's northern europe. and now you have the credit cut for france. it's just underlines the fact that we're going to have to live with a strong dollar because the euro is going to need a very weak euro fx for sometime. >> kelly? >> go ahead. >> i want to read you some more from the statement i'm just going through here. but they believe -- they talk about france making some of these structural changes. we believe that implementation risks persist. a lack of a strong track record in structural policy, possibility of vocal opposition to many of the planned measures. high unemployment with respect to 10% and according to opinion polls an unpopular political leadership. so again, this is similar in a sense of the united states where the downgrade we had was because of the political dynamic. a big part of the net change to negative is also because of s&p's lack of belief in the

political dynamic and france coming to structural reforms. >> and worse in italy where renzi is vocal about the difficulties of getting reform. he has to reform the political system, easier for decisions as well as the fiscal systems, as well. >> bob, walt, patricia and steve, thank you very much. the dow off about 44. tune in monday to "squawk box" and mark carney will react to this news on france, again. mark carney will be on "squawk box" monday morning. you do not want to miss this. >> limited reaction to the broad market from the news and point out the nasdaq. that's where the story has been throughout much of this story and the deterioration is certainly picking up. within the last, you know, ten minutes or so. nasdaq down now 77 points. >> ouch. >> much of this could be put on the warning of microchip saying a correction is beginning. you have big chip names stocks

crucialed throughout the day, intel getting hammered, micron, the smh is plastered. >> but again, if you think about everything that chips go into, saying that the industry is turning, that's -- it's obvious that this is the reaction. for now, face value. we have a ton of earnings coming up with some executives who will probably confirm or deny that report from microchip down almost 12% on the session. intel off about 5% weighing on the nasdaq with 35 minutes to go. yep. take a look at the dow again down 46. s&p as we said 35 minutes to go in the week. you are watching dave and buster's ipo today. >> seeing green on the market debut. as box, that's the web storage firm delaying the initial public offering to january. and later with stocks all over the place this week, sharon epperson tells you how to protect your portfolio from the wild cross currents. e

financial noise financial noise financial noise financial noise today could be the day. the day we give you hope.

relief. a cure. today, we believe every life deserves world-class care. as one of the top four hospitals in the nation, over 100,000 people from around the world come to cleveland clinic for care each year. and we're ready for you with a second opinion or a same-day appointment today today today and everyday. call today, for an appointment today. the ultimate arena for business. hour after hour of diving deep, touching base, and putting ducks in rows. the only problem with conference calls: eventually they have to end. unless you have the comcast business voiceedge mobile app. it lets you switch seamlessly from your desk phone to your mobile with no interruptions. i've never felt so alive. get the future of phone and the phones are free. comcast business. built for business.

welcome back with breaking news on beats and bose. details, julia? >> that's right, kelly a. resolution to a patent dispute, beats sued bose alleging patent infringement. they have settled their patent infringement lawsuit out of court avoiding a pricey lawsuit here. the terms of the settlement were not disclosed and the two companies said that the dispute had been resolved.

back over to you. >> big story. >> these two companies, remember, there was the nfl quarterback capper nick as part of breast cancer awareness week wearing his beats headphones in pink even though the nfl has a sponsorship with bose so he got fined $10,000. so these companies have been linked for over a number of different issues for -- >> and owner apple, perhaps not surprising, one to watch in any case. 30 minutes to go here, keeping an eye on markets as the dow is lower by 57 points and again the nasdaq off almost 2% off 84. >> dominic chu, when's moving? >> scott, kelly, let's start off with the biggest laggards of the day. microchip lowered the forecast. you can see dragging down the semiconductor industry with it. tough day for tesla, as well. investors unimpressed with the

"d" model of the sedan. the shares down by session lows. a different story for exact sciences soaring on news that the medicare committee recommended a higher than expected reimbursement rate for its colon cancer screening test and good news for exact sciences. darden rest rapts losing ground. its entire board of directors ousted at a shareholder meeting by activist investor starboard value and ending with dave and busters rose as much as 13% in its market debut today. play ticker and pricing 6 million shares and that's the low range of expectations and open up, guys, at $17 per share. back over to you. >> all right. dom, thank you. we'll pick up there with dave and busters doing well on the first day of trading but yesterday there were some shaky ipos amid the market volatility and today that box delaying the

offering to january because of the recent market. will others follow suit? >> joining us for their takes is cathy smith, excuse me, from renaissance capital and scott rosten of training the street. welcome to you both. good to have you in this conversation. scott, you have to have some guts to go public into this volatility, right? >> that's right. something we bring up in class training on the topics is ipos are windows of opportunity. windows open and close and move very, very fast and make sure you're getting in and out as the companies are filing to go through the process. >> we have to wonder if alibaba helped close that window. >> the ipo market is under some pressure as the overall market. roils those new ipos and since alibaba is priced, 25 ipos we have seen since those that opened today on average trading below the ipo price and 60% of them are breaking the ipo price

and not a pretty picture in this market environment and requires as we saw today these companies to discount their prices to get the deals done and the post-ipo trading to be positive and happened with dave and busters and also with the diplomat pharmacy ipo today. >> what does that tell you in terms of comparing this year which i think is the biggest year for ipo since 2000, what does that tell you this underperformance? >> well, it tells us that the ipo market is going to slow down. prices have to be adjusted downward to reflect market realities and the ipos priced against often the peers f. the peers are down, the pricing will be down. so what it says is market will adjust and then i think we are in for a slowdown in issue shans and this year is a record anyway with alibaba. >> scott, how about what cathy is saying of a slowdown? do you think it lasts for sometime? >> who knows? very difficult to say.

obviously the market volatility right now, your commentary before about the downgrade of france and europe and all that weighs on to investor psyche and important to remember that ipos usually about growth stories of companies and companies come to market with exciting products and technologies that investors get behind the growth story, you will see pockets and hear there of companies going to perform well. >> what if they're sucking for air, though? what if alibaba sucked the air out of the room? there's the danger. when you have that elephant in the room, there could be a crowding out effect and something that could invite someone and showing a very strong top line growth and good profit kt and innovation and everybody thought box was a darling and postponement does show the dangers in the difficulty navigating the troubled waters. >> that's why it seems so interesting. it would seem to match the criteria you laid out. in any way case, leaving it there for now. thank you for your perspective, scott and ath lean.

again, markets, look at this, scott. selloff into the close happening again. off 65 points. going to be a lot for investors to think about over this weekend. >> dow's effectively flat now on the year. positive territory by 20 only. >> absolutely. the bond market and lately pushing everybody else around closed for monday here in the u.s. >> 16,576 on the dow so 20 points from now and that will make the dow flat on the year giving everything it had, a tremendous gain, nonetheless -- >> no. moments it looked like a double-digit this year after the double-digit gain last year. this is not helping make that case. up next, are the markets trip triple-digit moves driven by the realization of the fed out of the market and raising rates in the pros talk that out. don't touch the remote. ings acc? that's right. it's just that i'm worried about you know "hidden things..." ok, why's that?

no hidden fees, from the bank where no branches equals great rates. dad,thank you mom for said this oftprotecting my future.you. thank you for being my hero and my dad. military families are uniquely thankful for many things, the legacy of usaa auto insurance could be one of them. if you're a current or former military member or their family, get an auto insurance quote and see why 92% of our members plan to stay for life. an unprecedented program arting busithat partners businesses with universities across the state. for better access to talent, cutting edge research, and state of the art facilities. and you pay no taxes for ten years. from biotech in brooklyn, to next gen energy in binghamton, to manufacturing in buffalo... startup-ny has new businesses popping up across the state.

see how startup-ny can help your business grow at startup.ny.gov so i can reach ally bank 24/7, but there are24/7branches? it's just i'm a little reluctant to try new things. what's wrong with trying new things? feel that in your muscles? yeah... i do... try a new way to bank, where no branches equals great rates.

welcome back. let's take a look at where the damage is done today. the nasdaq down by 2%. but thereabouts down about 85 points. we have talked so much of what's happening in the chips and may be the catalyst for today. microsoft down nearly 4%.

looking at some other names. apple's barely hanging on to positive territory. maybe the icahn bounce and damage across the board in the market today. >> microchip tech kicking off the earnings season and won't hear from the bigger guys for about a week or two and the question is whether they say, no, in fact, they see legs nor cycle. but if not, again, a bit of a warning sign not just for the chips but the companies named in the space. all or a lot of which use this or ultimately are reliant on the tech sector here and often a leading indicator. >> we showed a number of names now. qualcomm down more than 3%. taking a look at broad come today down more than 5%. it's widespread, really. the damage that's done across tech. sanddisk down. >> perhaps more against the backdrop of the dow off only 51 points here so a relative

outparls frou outperformance. s&p down about 14 and the damage mostly concentrated for now in the nasdaq. but a lot to think about. >> the other point real quick we should make is that the real number to watch, despite that dow number is 1904, 1905 on the s&p. that's the number literally every single person in this entire stock exchange is watching today and all of you at home should be, as well. getting close to that and breach that, you could potentially get some kind of gap lower. if you go through that number. >> 1913 is where we're sitting at the moment with 20 minutes to go. a woke close here for a couple of sessions and similar activity and that, as you said, watch the s&p for that 1905. less than half an away from closing the wild market week. >> jeff cox says there are moves, the moves are all part of a post-fed price discovery. what does that mean? >> he's here with peter costa.

jeff, this is the fed's fault? >> well, kelly, i think it's the fed's doing. depends on what your perspective is of whose fault it is or whether it's a fault. you know, i kind of remember back in the olden days and peter can probably remember this, too. stocks used to go up and down. and actually sometimes some stocks would go up and other stocks would go down. now, since our last five years, that hasn't happened. i was back in the days of the free market. now we're in the less than free market because we have the fed orchestrating things. well now that market's starting to look ahead and trying to figure out what what happens when the fed is gone. hence this concept of price discovery. it's just meaning looking at a company's fundamentals, compared against a normalized income tax gap and that's where we're going with the markets and investors watching and going to be the key in the future as we get further away from the fed's manipulation of the markets.

>> peter, maybe, though, it's as james gorman said today at the event i think down in d.c. the market's overly focused on the timing of when the fed is going to raise rates. >> i think that should be taken into consideration but, you know, it all boils down to earnings and if you look at thor andings and the fundamental of companies and jeff said i think would be -- much more important looking at the fundamentals that's what you are seeing right now is rejigger iing and i thin interest rates start rising sooner rather than later and i think the market is looking at that -- >> not ready to throw the chips on that view yet, peter? i believe the bond market's closed monday and that is good tell of where psychology is. under 2.3 on the 10-year. >> yes. that's obviously indicating to see that. but, you know, i mean, just hear me out on this. the next week we have the

financials. a lot of financial stocks, banking stocks reporting earnings. i think if they come in lighter we'll break through the s&p's 200-day moving average and watch out. >> very interesting. >> i was asking you about the rising rate environment. you're sticking to your guns and think rates rise sooner than later? >> yes, i do. i've said december but the fed said three or four times that's not going to happen. probably sometime in, you know, mid, early to mid-2015. i still think that because the economy, you know, when you look at the core part of the economy, things are getting better. only thing you are not seeing is rising inflation. i think you will start seeing that soon because companies are starting to hire and now going to start seeing a rising inflation. >> peter -- >> i'm sorry, jeff. one more question for peter. you're here on the floor. what happens if, you know, someone just pointed out to me. you say, well, the bank earnings, bad take you through

the 200-day moving average. what if the market doesn't give you a chance to get there? what if overnight into the morning on monday the s&p is below that? then what happens? >> you have to watch out. the thing is it's not so much if it strikes through the level. if it closes at below that level, that's what's significant and then the follow-up the next day, you have to see what happens there. sometimes you can break through a 200-day moving average and bounce off and never see it again. it's the follow-up of breaking through and closing behind that level that's extremely significant. >> good point. thank you. jeff, we have to leave it there. tight on time here watching the markets. appreciate it. to both of you. and again, just little more than 15 minutes to go here. dow off 63. >> yeah. the s&p 500 is down 16. again, 1905 is the level to watch. really a critical technical level. 200-day moving average of the s&p 500. not that far above it. certainly anything can happen in the next 15 minutes. the way things have gone lately with a pick-up of selling into

the close you can reach that level in a short period of time. >> as you just heard jeff cox saying, this is the market and dominic chu with a special report of stocks doing the best and worst since the s&p 500 hit its record high last month. there are some still climbing and may be a few surprises on his list. stick around. i make a lot of purchases for my business. and i get a lot in return with ink plus from chase. like 70,000 bonus points when i spent $5,000 in the first 3 months after i opened my account.

and i earn 5 times the rewards on internet, phone services and at office supply stores. with ink plus i can choose how to redeem my points. travel, gift cards even cash back. and my rewards points won't expire. so you can make owning a business even more rewarding. ink from chase. so you can. ameriprise asked people a simple question: in retirement, will you outlive your money? uhhh. no, that can't happen. that's the thing, you don't know how long it has to last. everyone has retirement questions. so ameriprise created the exclusive.. confident retirement approach. now you and your ameripise advisor can get the real answers you need. well, knowing gives you confidence. start building your confident retirement today. big day? ah, the usual. moved some new cars. hauled a bunch of steel. kept the supermarket shelves stocked.

made sure everyone got their latest gadgets. what's up for the next shift? ah, nothing much. just keeping the lights on. (laugh) nice. doing the big things that move an economy. see you tomorrow, mac. see you tomorrow, sam. just another day at norfolk southern. this guy could take down your entire company.h? stay with me. on thursday a hamster video goes online. on friday it goes viral - a network choking phenomenon. why do you care? he's on the same cloud as your business. the more hits he gets, the slower your business may get. do you want to share your cloud with a hamster? today there's a new way to work. and it's made with ibm.

dominic chu is crunching the numbers on stocks and senior citizen or the that is have done the best and worst since the s&p hit a peak last month. >> september 19th, scott and kelly, the last time we saw the record highs for the s&p. start with the good news first. where the winners were. looking at the sectors, perhaps no surprise here that some of the best performing ones were the more defensive names. health care, consumer staples, product type companies and utilities. one of the only real winners since the record highs and continuing to go higher. looking at the stocks have done the best here so far, weathering the storm. check out the names. mylan labs and monster beverage up 7. nike up 7%, as well. you have the chlorox company. and a consumer theme among the

last three on the screen there. interesting that despite the fact of down markets, maybe oil prices losing steam providing money for people's wallets. sector loser side, here's the bad news. cyclical ones, energy taking the biggest hit. these are the dark and stormy ones. look at these stocks. they have done the worst since the market hit that peak on september 19th. ford motor, among the worst. 17% to the downside and chesapeake energy. all taken rather large hits. the question then becomes whether or not people are buying on the dip. remember this volatility we have seen has given traders a moment of pause and not seen this kind of volatility in the last peaks and valleys that we have seen over the course of the last couple of years. guys, back over to you. >> dom, thank you. with 12 minutes to did into the closing bell. the dow off 79. the s&p sitting at 1909, scott. >> market selling off a bit as we get closer to the close.

i just want to point out 1905 is that number to keep close eye on at the nasdaq. ebola fears may have factored into this week's wild market swings and in particular the u.s. southern command general's dire warning of ebola spreading here in the united states. >> if ebola breaks out, in haiti or in central america, i think it is literally katie bar the door in terms of mass migration of central americans into the united states. >> not a movie. the pros explain if this general is being realistic or exaggerating. go ahead and put your bag right here. have a nice flight! traveling can feel like one big mystery. you're never quite sure what is coming your way. but when you've got an entire company who knows that the most on-time flights are nothing

if we can't get your things there too. it's no wonder more people choose delta than any other airline.

all right. welcome back. the dow now negative for the year. stocks are selling into the close. a couple of really important facts to keep an eye on. nasdaq could have the first back to back 2% declines in 3 years. so you know when's been happening with the nasdaq as of late especially today with the chip rollover? 1905 the number to watch into the close at s&p. three points above that. stocks can bounce off the level or gap below it and then you got a problem. >> art cashin saying about 800

million in sell orders on the close may explain the additional weakness in the last few minutes. the nasdaq far and away the biggest loser of the day. morgan brennan up there. not looking good. any idea what's responsible for the leg lower here wrapping up the week? >> well, well, the you look, i mean, look at the tech sector, seeing the losses. down 2.25%. 97 points for the nasdaq compose sit. huge selloff acceleration and now on track for the nasdaq to close the week more than 4% lower so s&p tech sector by far the worst performer for the s&p 500 today. that's down 2.5% and mentioned throughout the day semiconductors really leading that decline. microchip with the revenue warning. also micron and intel down about 5% now. but here's where it's really interesting.

it is also software and services, microsoft, facebook, that hoo, google. not just the small caps. we are seeing the selloff in the large cap tech stocks, as well. one exception is apple which is in the green today but only just barely and i have spoken to a few strategists and say next week is going to be when you want to look closely at this area because we have got intel, netflix, ebay, google reporting earnings and shape up tech stocks into the rest of the year. back the you. >> morgan, thank you so much. and up next, we're going to see you through the end of a wild week here on wall street. closing countdown is next. after the bell, market insights of one of the best known money pros, bob doll on the panel the entire hour. you're watching cnbc, first in business worldwide. they're coming. what do i do? you need to catch the 4:10 huh? the equipment tracking system

will get you to the loading dock. ♪ there should be a truck leaving now. i got it. now jump off the bridge. what? in 3...2...1... are you kidding me? go. right on time. right now, over 20,000 trains are running reliably. we call that predictable. thrillingly predictable. sometimes they just drop in. always obvious. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities.

cme group: how the world advances. get to the terminal across town.

are all the green lights you? no. it's called grid iq. the 4:51 is leaving at 4:51. ♪ they cut the power. it'll fix itself. power's back on. quick thinking traffic lights and self correcting power grids make the world predictable. thrillingly predictable. all right. welcome back. we are on the floor of the new york stock exchange for the closing countdown. i'll tame you to the board and what to watch. dow jones industrial average negative on the year. fl nasdaq down 2%. back to back declines first time in two years. 1905 the number to watch. 200-day moving average. two points above that heading into the close. that's the story. small caps continue to roll over. chip stocks rolling over. transports not much better than

that. let's bring in experts. david darris and michael black both with us. how do you feel, david, in the markets you have seen, this correction is going to be if, in fact, this is it? >> we have talked in the past. the last two times the fed has ended quantitative easing it cost the market about 15% each time. this is a 4%, 5%, 6% decline so far. to my mind this is a juice cleanse that's been needed and then we feast our way until the end of the year and the market will go back up. >> michael? >> yeah. you know, in terms of markets, this feels a lot like early february and everyone was scared, there was a lot of big movements in treasuries and credit. turkish currency. we remember that. juice cleansing is a great term. that's how i feel about it. i'm looking at things that should do well with weak crude, consumer and health care. tech took a ding today. i think they're overdoing it. we'll find out intel tuesday night but i'm buying things not

related to energy today. monday could be weakness and buying into that, too. >> that's the question. whether this is a buy. whether, david, look at market and say, you know what? there are real opportunities out there and i better pounce while i have the chance and may not get another one. >> good point, scott. this earnings season is supposed to be up only about 4% including to fact set on the earnings per share and 3%. and that could very much give the market a lift here. we have lack of pricing power. we got germany, china. we know all that. but janet yellen, the fed minutes, these are all things that i think are on the positive side and we got the manufacturing and next week you're going to get empire state. >> one more question and answer it quickly if you can. the significance of what could be an ugly equity day on monday without the treasury market open. >> more liquid, scott. i'm going to say there's opportunities both ways.

let's see what happens. earnings should be exciting. the bar is low. sentiment is low. i like counterpunching that. >> s&p pushing up near the 200-day on the close and a turbulent week. dow jones industrial average down. second hour of the bell starts now. thank you, scott. welcome to "the closing bell," everybody. looks like the dow jones industrial average erased the gains for the year. i'm kelly evans. ending a wild week. the dow off 115 at the close. nasdaq off 102. keep in mind in a dow equivalent, talking about, you know, the dow losing 300 points down 2.3%. the s&p giving up 22 going out at 1906. just a hair above the 1905 level everyone is watching. russell 2000 off 2% and 13%

below the 52-week high. bring in the panel, robert lunar, bob doll, our own kayla and that steve grasso off the floor in a moment and steve liesman with breaking news of treasury secretary lew reassuring us? >> no. the other way. global economic weakness saying the global economy continues to underperform. this is the treasury secretary addressing the imf meetings, annual meeting saying the euro area recovery lagged other advanced economies and saying that europe should recalibrate the policies address demand-side weakness specifically structural reforms he mentioned and fiscal policy with flexibility he says and china says there's a risk to the chinese economy have risen and finally he says g-7 and g-20 countries should adhere to the exchange rate commitments and concern on his part expressed

there that the weakness in the globe could reflect itself in exchange rate or currency worries out there. kelly, finally, we were talking, our friends over cnbc europe talking to the french finance minister when the downgrade or the downgrade and the outlook happened of s&p and he said that the problem, this was a euro zone problem, not a french problem. waiting for that tape to come in and that's what the friends of cnbc europe said the french finance minister responded to the downgrade of france from stable to negative. >> steve, thank you. let's get everybody up to speed and thoughts from the panel. we have the outlook for the french economy downgraded by s&p in the last hour. we have these comments of treasury secretary lew warning of the weakness overseas, bob, and the dow selling off and the s&p 500 almost hitting the 200-day moving average. >> it's not a fun week. we have the manufacturing sector improving. we have the employment numbers

better. we have got a big tax cut in the form of energy price decline so, look, i'm not saying the market shouldn't go down in the week. we have had some real issues but remember we are down 4% or 5%. this is the fourth time this year of a decline of that magnitude and technical damage this time. >> your perspective. do you agree? >> yeah. the tough thing, kelly, people wake up on saturday morning and look at the headlines down negative on the year so wouldn't surprise me at all with pressure in the market monday and tuesday and valuations and when's happening is people moving into cash right now and the realization is cash still pays nothing. they'll see some of them even though the market's only pulling back 5%, 6% there's good stocks right now. >> kayla, heading into the heart of financial earnings season, as well. should we be concerned of headline risk there? >> not necessarily. i think the third quarter with some volatility starting to creep back into the market probably good for banks. we heard a lot of the ceos

talking at the institute of international finance conference of lending picking up and that industry is well capitalized and seeing a strong return to growth and said a global recovery without europe is not a recovery so just because things are okay here in the u.s. doesn't mean that people will be willing to put their money into global equities. one thing to watch, kelly, today we got news that the ecb to announce the results of the european bank stress test october 26th. it's a sunday. but there are a lot of investors saying i won't invest in financials until i see either pleasant surprised of how well capitalized europe's banks are or much worse than expected and there's more work to do this. >> steve grasso is joining us from the floor. >> hi, kelly. >> to the point made of the strength of the u.s. economy, would you have thought in the same week of jobless claims near

historic lows and the s&p behaving this poorly? >> no. you willn't have thought -- this market is bulletproof for the longest time and technically breaking down and you see europe slowing down so obviously it's the perfect timing, perfect storm for the market to sell off. look at the s&p. of course, we closed right at that 200 day and 1905 and s&p cash. seven times we have broken the 100-day moving average in a year or so and haven't broke the 200-day in 2 years. we need a clean break. this is not going to be enough to satisfy the market. >> yet, two different messages, here, steve. the fundamentalists are saying, you know, frankly, not so much to be concerned about. am i hearing you right? >> i think that chips were the biggest thing that spooked the market today. if you look at it, leading indicator so we have to really

proceed with caution from here. we have to hear what the companies say next week, september's usually the best month for chips,s no the worst. so i think it could be a very telling week next week but i would say lower versus higher. >> i would argue that we're volatility and liquidity hand in hand. we have had a whoosh of liquidity for how many years now and now the process of the fed taking that off the table. through the tapering process, eventually rate normalization. as liquidity is withdrawn, we are going back to seminormal volatility. what experienced this week is not all that unusual unless the frame of reference is last few years. >> a good thing, an opportunity. sa say for people not involved in the last market and more volatility? >> i wouldn't run out and buy a mall. monday morning. i would be dollar cost averaging in believing the bull mrkt's not over because the economy and earnings are doing a bit better. >> let's get another take on the

markets of winny sun from sun growth and sounds sunny. is your outlook more positive? what do you make of the damage done to the markets this week? >> kelly, wednesday life was great. thursday, not so much. today, not so much either. this is one really moody and emotional market. but we think it's not the time to be panicky. but it's time to review your portfolio holdings. europe, asia, all real concerns. bull is a big one. s&p nearly ape tr iped in last five years and didn't take that much to look smart but you want to look back at this time and have something to show for it so what we're saying is take some profit and hold some cash and be positioned to invest in times of weakness in these little mini corrections we are seeing. >> a question for people this weekend again, maybe reviewing the portfolios where should they

be shopping? >> we still like the story of tech long term. we think if you're time horizon is long, you should be buying on weakness. see the corrections as an opportunity to build. >> i would agree with that. i think cyclicals in general, assuming the economy and earnings are doing better and i think there are lots of evidence to say that's the case and come up and out when the noise is over. remember january, down 8%. august 4st. >> comments of microchip seriously to the extent of saying, look, we think the industry cycle here is ending? >> ending, i think that's really strong. maybe some of the stuff they do individually and other parts of technology brilliantly well and still capital expend yours moving up in cap x and it's not a boom but enough of the earnings of the companies to do better. >> looking at a market getting ready to collapse and i think

what most individual investors are worried about right now, another 2008, and is it 5% correction or a 15% or 20% correction? when you look at companies like jw nordstrom today up, costco up, pepsi. the high-end consumer still in the market. i think a lot of opportunity and probably time to be selective in the stocks and not just buy -- >> retailers are strong, too. comping that year over year comp with the federal government shut down and a lot of those look better on a year over year analysis versus anything else and maybe you could see that pop going into year around and obviously before midterm elections, retail names doing better and then if you're hoping for that pop, kelly, you're playing it after midterms and not before. >> all right. thanks to everybody. steve liesman, was that you? a quick last word here? >> quick board. not a dollar of liquidity of the fed has been withdrawn. in fact, as we speak, the fed is still adding.

it will, i believe, next month, as well. and for all of next year, i believe, the entire amount -- mostly the entire amount of the balance sheet's going to be unchanged and not going to be adding liquidity but the notion that it's withdrawn is not the case right now. >> not right now. you know, steve, markets like to get ahead of what's coming. >> this is way ahead. maybe more than a year ahead of that. >> understood. good reminder, steve. thank you very much. we'll leave it there for now. thanks, everybody. stick around for steve grasso coming up at 5:00. they're going to hone in on the chip makers whacked on the warning talking to one top analyst of which you should buy on this dip. so don't miss that. it's been another wild market day here on wall street. how you can protect your portfolio and sanity from the volatility is next. later, forget the fed. hearing from somebody saying interest rates will be extremely low despite any talk of a possible rate hike by the fed. he'll explain why how's that

possible later. an unprecedented program arting busithat partners businesses with universities across the state. for better access to talent, cutting edge research, and state of the art facilities. and you pay no taxes for ten years. from biotech in brooklyn, to next gen energy in binghamton, to manufacturing in buffalo... startup-ny has new businesses popping up across the state. see how startup-ny can help your business grow at startup.ny.gov

welcome back. truly a week to forget for the bulls after another volatile session today that took the dow back in the red for the year.

sharon epperson looking how main street investors protect their portfolio of the wild streaks. sharon? >> a rough ride this week, kelly. a fact to keep in mind in a volatile market is time horizon and risk profile. look at the stock market's recovery over five years. you may have seen a 50% to 60% return in that time period and down this week it's a blip. if you are a long-term investors, advisers agree it's no time to panic. that said, now may be a good time to sell your big winners and lock in gains. reinvest in more conservative investments and added layer of protection, a stop loss order to preserve the gains. finally consider your asset allocation to be balanced and not just stocks and bonds but also alternative investments like managed futures or long short funds to reduce volatility while delivering solid returns.

all investors keep in mind that stock markets often experience at least one big pullback a year but pullbacks always come to an end. kelly? >> good perspective. stay with us. our panel is here and bring in ann richards. she has over $500 billion under management. how are you protecting money? >> what's said is absolutely right. i think diversification is very important. number of different things to happen in the world and not putting all of your eggs in one basket a very, very sound piece of advice ate not sucked into trying to trade every little up and down that you have in the market, as well. that's when you often lose money one step behind the game all the time. >> do you think we're going to enter another period of currency wars as nations struggle with the appreciation of their currencies? the u.s. included. >> well, i think we've been in a cold war for currencies for a while. i don't think that's new news. i think that euro zone, for example, not very successful about doing what it wanted to do

which is pull the currency down a bit. it's been a bit more successful in that recently and seen for sometime now the yen weak against the dollar so i think actually we're no different. it's just that we have seen a little bit more move on the euro front and what the region needs. >> what do you make, anne, of the downgrade of the outlook of the s&p an hour or two ago? >> completely understandable under the circumstances. what we have needed in europe is some fiscal reform, regulatory reform to back up the loose monetary policy we have had and we have not had that up to now and an important signal basically saying to the politicians you can't allow mr. draghi to try to do everything. you have to do your bit, as well. i think it's a good signal, bob, i wonder, do people's portfolios, does the success of that trade, that investment now depend on fiscal authorities like those in france and germany

and even the u.s. now taking the baton and how much confidence should they have to be able to do dha? >> i think more so corporations and earnings where it's been moving but if i can come back and ask anne a question on the ecb, anne, it seems to me the ecb of late has done a lot of talking and maybe not quite so much action. you may or may not agree with that. the point is can the ecb get ahead of the curve? if they would do that, that would help risk assets around the globe. >> look. you're absolutely right. the ecb is slow and behind the curve the whole way along and it's understandable in a way that because they have got to get the consensus right across the euro zone, very, very difficult thing to do so i think the challenge for them now is only thing really left in the arsenal is full blown qe and shot that bolt, there's nothing left for them to do. i think there's a degree of relunctance of the big governments to get serious about reform.

>> and there still does seem to be intransigence for the european countries and saying they're not sure that it's possible that should be done, bob. >> remember we had a lot of inflation 100 years ago and we have to worry about it. tongue in cheek. i think we're on the subject. if the ecb could get ahead of the curve, the wary this week at the top of the list i think is slowing nominal growth. inflation in europe. we need to reflat europe like here in the u.s. >> will that happen, robert? >> i don't know. whether you see germany with numbers like they posted this week, that's a wrinkle in that. the question is markets are forward looking. i don't know now's the time to be bearish on europe. these markets are down 12%, 15%. if you're an individual investor like we talked about and having a global allocation, underweight europe, i don't think you want to sell more. look, wait into the position and

maybe make an allocation to europe. >> sharon? >> the key is to get investors to get the emotions out of it. seeing in europe or the u.s. right now, if the allocation for them to be in a certain percentage in european stocks or certain percentage in large caps and may have taken a hit this week, keep the allocation to get you to the long-term goal. that's the key. >> you're right. i have seen more money lost by individual investors selling at the bottom than buying at the top. they see the information and portfolio, statements of the quarter saying, wow, my europe fund down 15%, 16%, now's the time to sell and exact wrong thing to be doing right now. >> great reminder. thank you for joining us this afternoon and the perspective there. most investors expect the fed to raise interest rates next year but the next guest says even that move wouldn't cause long-term rates to rise. how's that possible? is it actually a bad sign for

the economy? we'll talk about that. also ahead -- >> if ebola breaks out, in haiti or in central america, i think it is literally katie bar the door in terms of mass migration of central americans into the united states. >> top general giving a dire warning about the ebola threat to the u.s. is this worse case scenario or a real possibility? that's ahead on "the closing bell." when change is in the air you see things in a whole new way. it's in this spirit that ing u.s. is becoming a new kind of company. one that helps you think differently about what's ahead, and what's possible when you get things organized. ing u.s. is now voya. changing the way you think of retirement.

big day? ah, the usual. moved some new cars. hauled a bunch of steel. kept the supermarket shelves stocked. made sure everyone got their latest gadgets. what's up for the next shift? ah, nothing much. just keeping the lights on. (laugh) nice. doing the big things that move an economy. see you tomorrow, mac. see you tomorrow, sam. just another day at norfolk southern. i have $40,ney do you have in your pocket right now? $21. could something that small make an impact on something as big as your retirement? i don't think so. well if you start putting that towards your retirement every week and let it grow over time, for twenty to thirty years, that retirement challenge might not seem so big after all. ♪

all eyes continue to be on the fed. if you think fed hikes about to cause long-term rates to rise, you may want to listen up to the next guest. john bellows here with a fascinating take on what rate hikes might really mean and joins me now with the panel. john, welcome. first of all, lay out the scenario for us in which the fed raises rates and the long end fall. why would that be? >> i think it's important to remember when the fed raises rates it's overnight rates and sensitive to fed actions and long-term rates aren't as sensitive. they're going to depend on what's happening with inflation, with growth and with the broader risk environment. what we see next year is short rates going up as the fed hikes and inflation low, growth moderate and the broader risk environment remaining one in which investors want to hold protection and long term yields and in that environment, yes,

short-term rates go up but could stay quite low. >> do you think the fed knowing the message that would send or typically means when this happens, in other words, that the economy's heading for trouble or is already having trouble, do you think the fed would raise rates in that environment knowing the potential effect it could have? >> you know, i think the thing to keep in mind is long-term rates more important for the economy and financial rates. what corporate treasurers make decisions off and from the fed's perspective, if long-term rates are low, that's good, supporting the economy, financial markets and it's helping growth to continue so i think the fed would be satisfied with that outcome, especially if they could get short term rates off zero, give themselves some flexibility without disrupting the economy. that's a good scenario for the fed, actually. >> kayla, do you think the banks, life insheerure earls wo agree? there's a lot depending on the

yield goes. >> the jury is still out and different executives of different types of companies have varying views on this. but this afternoon we got comments of james gorman of morgan stanley saying if you believe the u.s. economy is getting better next year, it's better right now, but if it continues getting better then where it will be, march or october of next year, it won't impact our business at all except for helping it because ultimately they're lenders and they're making more money off of higher yields. >> right. if that happens. what do you guys think? is this scenario likely, bob? >> i followed your logic and that is will the fed raise rates if nominal growth is so greek and real growth doesn't pick up and inflation doesn't go up, the data dependence good excuse will say we'll wait a little while. >> what if the scenario of right now plays out and growth is pretty good and just no inflation? >> that's an objective. they want inflation up. i think we haven't talked about

labor at all but as the unemployment rate goes below six, we're stuck at real wage increases. not a big problem but enough when rates are this low to say, maybe we'll get some pressure. >> and now the dollar at a data point. unemployment is almost irrelevant with a brand new set of figures to use and a move in the dollar, even though it's somewhat volatile this week, as well. wondering if you see the dollar go up, over the next several months, how much does that change the fed's calculus? >> you know, i certainly think it enters the fed's calculus and more than the dollar and what's happening with the labor market as was pointed out and happening with inflation and, you know, if the labor markets continues to improve, the unemployment rate is below 6% and if inflation stays around the fed's target, i think the fed's going to cautiously raise rates. not aggressive or in a hurry but

they're going to cautiously raise rates. >> john bellows, thank you this afternoon. is it inevitable the ebola spread in the u.s. will have an economic impact? at least one major general is saying he's concerned about its spread this week. hearing from former top fda official on the threat and how the government can possibly contain it at this point. also ahead, famed tech investor marc andreessen not a big fan of carl icahn. >> remember the good and evil captain kirk? he's got the sash and the goatee. >> what is the -- so what is the real captain kirk think about all of this? william shatner is near at the new york stock exchange and ask him about this and the volatile market. we need this after a week like this, i think. that interview coming up here.

dow bouncing back a bit today from thursday's huge selloff if by bouncing back we

mean off 150 points. these are nothing unusual. the dow five days of 200-plus point moves in 8 trading days this month, bob. >> we ended essentially at the week low. while the dow was down rather notably 2.7%, it is really the small caps, russell 2000 getting discussion because if there's a global slow down, small caps should outperform, not underperform as they are here. a lot of people like to say the s&p only down 4% from the historic high. that's true. however, if you look a little bit past that, down 5%. the russell 2000's already in correction territory down 13%. they don't bring that up. we have seen some real damage in the small cap areas. other sectors are already well in a correction and talking this week.

semiconductors down 12. airlines, metal to mining and attempts to buy. the xop and didn't work. huge volume. three times normal. there you see it. didn't quite work. back to you. >> no, it didn't, bob. thank you. are we at a tipping point for an ebola epidemic? this is what general kelly of the southern general command had to say. >> there's no way to keep ebola in west africa and as hard as we'll try to deal with it and snuff it out there, it's going to run its course for some period of time. if ebola breaks out in haiti or in central america, i think it is literally katie bar the door in terms of the mass migration of central americans into the united states. >> is the general right about that? let's ask dr. scott gottlieb. thanks for being here. >> thank you. >> bar the door? you heard the language.

what did you make of the remarks? >> if you continue to see the rate of spread in west africa continue, it engulfs other parts of africa in a month or two and spread to end why and latin america with a risk to become epidemic in the regions because they're dense regions, they have poor health care systems and won't be able to contain outbreaks and epidemics in the markets, you're looking at a global pandemic and incumbent to do more to control it in west africa and keep it from spreading. >> just bringing in the panel here. robert? >> doctor, this reminds me of sars back in 2003 and it seems like we were able to contain that pretty well. how big a problem is the lack of africa we're seeing in africa to contain that from a situation of asia in 2003? >> right. that's a very big issue. with sars they got resources in there fairly early and countries took very strict measures to try to contain the spread of it and as you say they were able to contain it.

it spread to a number of countries. with this we have gotten behind the eight ball here. we didn't get to this early enough and the scope is large enough this it's hard to contain with public health resources alone. once you hit 100,000 to 200,000 cases in west africa, i don't know the number, you reach a tipping point and can't contain it anymore and then trying to get a therapeutic in there. >> bob, should the market be selling off more on the news as we follow it? >> uncertainty is never good for markets, particularly other uncertainties and we don't know to make a market impact. i would ask, okay, so sars could spread at such a rate. this apparently spreads at a much -- much more difficult to pass this along. can we put enough resources in recognizing that added fact to contain this sooner rather than later? >> briefly, doctor? >> we haven't crossed the point

people feel we can't contain it in west africa. here it could have a potentially large outbreak spreading there. hopefully we get a handle in west africa before it spreads out of africa. >> we'll leave it there. our thanks to dr. scott gottlieb. and marc andreessen comparing carl icahn to the evil captain kirk. the real captain kirk will be joining us. william shatner coming to "closing bell." stay with us. tdd# 1-800-345-2550 [ male announcer ] your love for trading never stops,

tdd# 1-800-345-2550 even on the go. tdd# 1-800-345-2550 open a schwab account, and you could earn tdd# 1-800-345-2550 300 commission-free online trades. tdd# 1-800-345-2550 so if you get a trade idea, schwab can help you take it on.

tdd# 1-800-345-2550 we're getting a lot of questions tdd# 1-800-345-2550 about organic food stocks. tdd# 1-800-345-2550 [ male announcer ] sharpen your instincts tdd# 1-800-345-2550 with in-depth analysis by schwab experts. tdd# 1-800-345-2550 and if you want to run your idea tdd# 1-800-345-2550 by a schwab trading specialist, tdd# 1-800-345-2550 our expertise is just a tap away. tdd# 1-800-345-2550 what's on your mind, lisa? tdd# 1-800-345-2550 i'd like to talk about a trade idea. tdd# 1-800-345-2550 let's hear it. tdd# 1-800-345-2550 [ male announcer ] see how schwab can help tdd# 1-800-345-2550 light a way forward. tdd# 1-800-345-2550 so you can make your move, wherever you are, tdd# 1-800-345-2550 and start working on your next big idea. tdd# 1-800-345-2550 ♪ tdd# 1-800-345-2550 open a schwab account and you could earn tdd# 1-800-345-2550 300 commission-free online trades. tdd# 1-800-345-2550 call 1-877-670-3357. tdd# 1-800-345-2550 or visit schwab.com/trading. tdd# 1-800-345-2550 schwab trading services. tdd# 1-800-345-2550 your go-to for trading know-how. tdd# 1-800-345-2550 ♪

well, just an hour or two ago s&p cutting the outlook on france to negative from stable. cnbc europe's jeff cutmore joins with more. jeff in. >> one of the television moments in the middle of an interview with the french finance minister when my producer burst in with the blackberry and said, the outlook has just been cut. i managed to get a question in to the finance minister before the pr dragged him out effectively in some of a bewildered state. he said this is not france specifically. but the euro zone. ie, i'm not bad. the company i'm keeping. let's put the question to cramer because he's the man who draws

up the ratings. this is about france and you are concerned about where this economy is going. >> hi, jeff. first of all, i'm not the only guy working on this as you can imagine and it is about france. it is a change in the outlook as the rating, still very strong, aa. but we indeed think that the risks increasingly tilted to the doneside and having to did with a number of things and pan european phenomenon and no coincidence that today we had another release cutting the rating of finland, for example, from aaa to aa-plus and a lack of growth is a key reason. >> lack of growth is an issue. clearly, we see sclo rattic growth. you feel there's a deterioration post-2014. why? >> well, we're basically these two topics interconnected growth and public finance. without growth, disappointing,

anemic growth, it is hard to consolidate the budget and this is exactly what we are seeing in france and other places. that given the weak economic environment, the measures have been taken is not generating the results the government hoped for and we have been expecting. so as we are sort of changing our own assumptions about the future trajectory of public finances, this has then implications for credit worthiness, obviously. we are doubtful even 2017 which is a new target for the government to hit the 3% deficit to be missed. >> the finance minister saying in my interview we are getting on with reforms, changing tax policies towards companies, we are trying to change the structure of the labor market. did you take that on board when you changed the ratings? >> of course we did. this is a key consideration because growth, you can only generate in a sustainable way of productive companies and

employment. you cannot generate growth through monetary stimulus or fiscal deficits. this can help you provide the breathing room and the reforms of the government has sort of put itself into the to-do list for the rest of the world and compassing. our concern and that's why we changed the outlook, not the rating is that the implementation risks are significant. it is very ambitious. the track record of sort of getting stuck in the process is then there in france and see the results of implementation rather than just sort of announcements of the measures. >> kelly? >> thank you, jeff. just a question from new york here. what i don't quite understand is extent to which s&p effectively putting france in a straightjacket by saying we'll allow you to make structural reforms and we don't think you should be given the space, for example, to do something that's more stimulative. that's exactly, some extent what mario draghi is calling on europe to do to play along here.

do you acknowledge and is it your spent to keep france within those parameters? >> well, we're doing nothing of the sort you're suggesting we are doing. we are not giving any advice. we are not telling the government to do one thing or the other. our job is to assess credit risk and credit risk depends on many things but the, you know, state of the economy, the resilience, the growth of the economy is one public finance is another. we need to calibrate the factors and we have been saying all along since the crisis went through, you have to have economic growth to resolve the leverage problems in both the private and public sector. >> my question is are you giving france room for economic growth may be needed, for example, for increasing the deficit to achieve that on a short term basis? >> we are no shape or form determining policy decisions in france so, yes, we are giving them, of course, the room just like the next would give them the room. >> jeff, last word to you here.

wrapping things up. we really appreciate your time in the interview. >> yeah, thanks very much, indeed, kelly. what was interesting i thought was how much the finance minister was trying to, if you like, point the finger somewhere else and we have seen this already from george osbourne in the uk suggesting maybe the uk hit its peak on growth in this cycle because of weakness in the eurozone but let's not beat around the bush here. france does have its issues and the french do need to get on with tackling some of their structural problems. >> yes. >> if they want growth back in their economy. back the you. >> thank you, jeff. we heard that reiterated from s&p. really appreciate it. as mentioned earlier, as well, we will have the bank of england governor mark carney on "squawk box" monday morning. he took on the role of priceline negotiator in 2007. >> save yourselves.

some money. >> we're going to talk to the negotiator himself, william shatner joining us next. there he is on the floor of the new york stock exchange weighing on everything from priceline to the comments of marc andreessen. where the reward was that what if tnew car smelledit card and the freedom of the open road? a card that gave you that "i'm 16 and just got my first car" feeling. presenting the buypower card from capital one. redeem earnings toward part or even all of a new chevrolet, buick, gmc or cadillac - with no limits. so every time you use it, you're not just shopping for goods. you're shopping for something great.

learn more at buypowercard.com big day? ah, the usual. moved some new cars. hauled a bunch of steel. kept the supermarket shelves stocked. made sure everyone got their latest gadgets. what's up for the next shift? ah, nothing much. just keeping the lights on. (laugh) nice. doing the big things that move an economy. see you tomorrow, mac. see you tomorrow, sam. just another day at norfolk southern.

but parallel parking isn't one you do a lof them.ings great. you're either too far from the curb. or too close to other cars... it's just a matter of time until you rip some guy's bumper off. so, here are your choices: take the bus. or get liberty mutual insurance. for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident. see car insurance in a whole new light. call liberty mutual insurance.

remember "star trek" episode with the good and evil captain kirk? it's one of those. >> carl is evil -- >> the goatee. >> well now we have the good captain kirk on set with us for his reaction to that and a lot more. william shatner with us. we need a break from the markets. >> i know. well, you're spreading fear is what you're doing. >> do you think so? >> i think you compound the -- the effect you must have on people, me, oh my god. the sky's falling. >> what's the alternative? not to talk about it? >> no. but the fundamentals are really good in this country.

where's the money going to go in europe and asia which is far more trepidatious than here? it's going to come here. so how many times have we been told, last time i read about the american dollar was going to plummet. end of the -- china owns us. the debt is overwhelming. >> right. >> nothing. >> everything's changed. >> everything has changed. debt's down. china doesn't own us. and the dollar is up. >> how much do you follow this stuff? >> quite a bit. quite a bit. >> in terms of investments. >> you know, i followed priceline.com quite a bit. >> that's where the money will go, right? >> i mean, traveling. and good -- well-run companies. well-run companies is where you're going to go. >> that goes back to the point of karm icahn and marc andreessen. >> i have enough battles of my own. no, but i work for priceline, and companies that i do do

something for i examine who they are, what they are and what they're doing and that -- encourages me. right now i'm on -- here in the comic-con and 120,000 people going to new york comic-con. people are spending their money. >> but what about the investors that do go knock on the door of some of these ceos? sometimes they ask them to sell the companies or ask them for -- >> this is what icahn does. >> we need a new ceo. are they good or bad captain kirk? >> i don't think you depend on a goatee to invest. i think you have to look at the fundamentals and the fundamentals of many companies are really good, like some that i mentioned. and the future of this country is glorious. all those futuristic stocks that have had a run but nowhere near what the run will be when they finally realize the potential. 3d printing. health stocks. growth stocks. >> what about priceline?

you tweeted earlier this year as it passed through the $1,000 mark and we don't see around here a lot like probably should have held on to the shares. >> should have held on to the shares. >> when did you get out of it? >> when they were a penny stock. >> stock. >> really? >> oh, yes. >> why did you get out of them? >> dotcom was failing and i had a lot of shares. not realizing completely how -- what a well-run company it was. and so it survived the dotcom fiasco. >> oh, yes, it did. >> you've resigned with them in 2012 for the negotiator campaign. did they got give you more stock then? >> well, they did. and i'm glorying in it. >> so you do still have a position. >> i have a position, somewhat bent over the position. >> certainly better than if you had exited entirely from the company. >> exactly. i would never do that. it's too good a company.

>> what's the magic of a thousand-dollar stock price. everybody is all obsessed with it. how would you react to that? >> well, that's an interesting question. the question is will they divide the stock, will they -- and i don't know what they're going to do. of course, i have no knowledge of what the boardroom at priceline does. and i don't want to know. i'm just a follower. >> i think individual investors get caught up on the big numbers. but it really was the company value. >> it's company value. the index is good. and it's a great company. bow i'm doing a book coming out in the fall called catch yourself up. dealing with unemployed over 55-year-olds. >> are you really? that's fabulous. what are you saying to them? >> i'm saying employ yourself. and the book describes how mechanically to do that. very to the moment of what's happening in the country.

>> it's the biggest reason. the decline we've seen in the unemployment rate has as much to do with exactly what you're talking about as the improving economy. >> exactly. so take the skills you have and get them, promote them. and work that way. get income by going to work for yourself. >> how concerned are you about ebola? >> i don't want to catch it. >> i bet. nobody does. >> very concerned. i hope that along with the fear mongering of everybody else -- we're not fear mongering on that. when the general said look the door. what does that mean? when i heard some of you say bar the door when i heard one you you say you better watch out. if it breaks a certain point, watch out. what does that mean? watch out for what? >> for it to go lower.

for ebola to possibly spread. >> but how many times has the market gone lower and gone back snup the fundamentals of the country are sound. >> can i ask you as well when we talk about the movie career that has made you what you are today to the extent to which your fans desperately want to know if there's going to be a william shatner cameo in the next series. >> i hate the word "cameo." >> what would you prefer? >> leading role. but failing that, if -- i don't know. my lips are sealed and so is my mind. >> is that the case? is your movie career behind you? >> no. i'm doing all kinds of things. i'm designing motorcycles, designing watches. i've got an interview show, brown bag wine tasting. >> but what about movies? >> on do it yourself network, six episodes of do it yourself

thing on october 23rd. a variety of shows and three movies this year and a lot of stuff. >> and at 83 years old, we should mention. i have to mention that because i think it is amazing and inspiring. >> we have to examine that and your age. >> we will. i promise. after we take two minutes here with the panel and william shatner. stay with us. ally bank really o hidden fees on savings accounts? that's right. it's just that i'm worried about you know "hidden things..." ok, why's that? no hidden fees, from the bank where no branches equals great rates. take and... exhale.in... aflac! and a gentle wavelike motion... aahhh- ahhhhhh. liberate your spine, ahhh-ahhhhhh aflac! and reach, toes blossoming... not that great at yoga. yeah, but when i slipped a disk he paid my claim in just four days. ahh! four days?

yep. find out how fast aflac can pay you, at aflac.com. (receptionist) gunderman group is growing. getting in a groove. growth is gratifying. 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.

in a we believe outshining the competition tomorrow requires challenging your business inside and out today. at cognizant, we help forward-looking companies run better and run different - to give your customers every reason to keep looking for you. so if you're ready to see opportunities and see them through, we say: let's get to work. because the future belongs to those who challenge the present. so i can reach ally bank 24/7, but there are24/7branches? it's just i'm a little reluctant to try new things. what's wrong with trying new things? feel that in your muscles? yeah... i do... try a new way to bank, where no branches equals great rates.

welcome back. time for some final thoughts with my panel and william shatner. calling us out on fear mongering today. does that mean we can go back and ask you again? what do you think of the star trek reboot? what do you think of chris pine in your role? >> he's young, handsome, talented and rich. >> and you're supportive of the piece? >> j.j. abrams has done a wonderful job. >> has the director reached out to you for this job? >> i wouldn't even recognize his voice if i heard it in my ear. >> we'll take that -- we're good at non-denial denials from people in these parts. what are you looking at for next week. >> corporate earnings. what are they going to say. and the behavior of the market

internally. this advance decline line stuff. next week's an important week. >> i'm watching bankerings. i'm interested to see what executives say about paypal as a stand alone company and the re-emergence of a threat. >> google is going to be a big one. look today for teches to take it on the chin. i want to see what google has to say as well as europe. i think we've got to see europe put in a bottom. i'll keep a close eye on that. >> and i'm looking forward to going home. >> aren't you going to comic-con? >> i'm going to comic-con tomorrow. but the day after that i get to go home. >> first you have to contend with priceline's challenge as it faces a slowdown across europe. we now know you're a shareholder in the stock. >> priceline will do well no matter what because it's a well-run company. >> we've heard managers say you can talk about valuation. but you have to find good people and bet on them.

>> i like the future stocks. i like the stocks. there is so much coming on that a slight deviation in the sale of stocks and what the stock market is doing is minute. >> you're talking about like 3d printing? >> yes. and others like that. >> tesla? >> tesla. >> apple? >> all those. health, water, the environment. >> solar? >> solar. all that. power. those are all the future. >> you're not shorting american innovation any time soon then? >> no. ideas is where it's at in this country. >> terrific. we're just about out of time here, but just thank you for coming by and sharing your perspective this afternoon. and, you know, maybe you want to leave us with a couple of particular stock picks, william shatner. >> topics? >> stock picks. >> if i knew, i would tell you. i feel inadequate in this company.

>> we feel inadequate. thanks for being here. "fast money" coming up in just a few seconds. what's on tap? >> it's been a scary week, right? we've got one chart which made qe 4. we'll show the chart and explain. >> all right. straight over to you guys. live from the nasdaq market site, it is "fast money." the dow saw the worst drop in 2014 yesterday. officially in the negative for the year. nasdaq seeing its first back-to-back 2% declines. today getting hit the hardest. the ceo of microchip firing a warning shot yesterday saying we believe another correction has begun. and this will be seen more broadly across the industry in the fear future. that was after a week where the transports fell more than 6% and the volatility rose nearly