attacked it said drone taking from the sky, melissa, fair to say nature 1, robots 0. >> go drone. i'll see you tonight. >> what? >> "fast at 5:00." >> what will you be doing? >> key reversals. >> all right. thanks. "closing bell" starts right now. and welcome to "the closing bell." i'm kelly evans here at the new york stock exchange. >> i'm scott wapner in for bill griffith today. we have a fluctuating market and the final hour of trading and lately that's been a very eventful 60 minutes for investors. >> certainly has. oil a huge story. gas prices in many parts of the nation below $3 gallon. good news, right? not so fast. there's a downside to plunging prices and we'll explain. the cdc director says he has

no idea how the nurse treating the now deceased dallas ebola patient contracted the virus herself. does the government have a handle on this outbreak? we're live in dallas with the latest. in the markets here's how the major indexes stand w. the new look today. off about 34 points. at the moment, you are looking there on the screen at the percentages. red for the majors. russell, surprisingly, though, up half a percent today. a little bit of a leading gauge for everybody else. >> speaking of new looks, russell 2000, this's a new look. up. >> that's right. >> been on a steady decline since july. a real point of concern for people who watch the market closely and a bounce today back positive by -- it was up more than 1% and now a half percent. >> absolutely. >> all right. joining the "closing bell exchange," sam stovel, anthony

chance and, guys, welcome. i was looking at the notes here. i see renee says market showing signs of being tired. sam says end of the year. lucky to have a single-digit gain. anthony says bad for the s&p 500. you haven't been negative consistently on this. >> still not negative. i actually looked at the relationship of stronger dollar and what it does to the s&p 500 and the russell 2000. conventional view would tell you because the small caps don't have a lot of exposure internationally they'll do better. yet looking at it historically you don't see that. you see the s&p 500 continuing to outperform the russell 2000. do you think then investors fade the russell bounce? >> there aren't that many energy companies in the russell 2000 and the s&p has a lot of energy companies in it so the energy index off almost 1%. the dow not down nearly that. following down the energy index for the time being and looks like the russell broke off and a

positive sign. >> renee, what's changed in the market over the last couple of weeks or even just last week? is it sentiment itself? is the it the fundamentals of where our economy is and the stock market to go from here? >> well, actually, i think the u.s. is the best place in the world to invest your money right now. but i do think is that the market's tired. we have seen ady vur intelligence back to the beginning of this year. russell 2000 officially in correction territory. down about 13%. the vix is high. it's been the highest level since 2012. might i remind everyone that october has been historically the most volatile month? finally, we've also had situation where we haven't had a correction since 2011. since 1932, there's been a correction once on average every two years and we are way overdue. >> sam, that being the case, is this the right time for

investors to back away from this market? can people afford to do so if this is another one of the kind of mini selloffs? >> hi, kelly. actually, no. i don't think you're wise to be selling in this kind of a situation. you're probably better off thinking about where you want to buy rather than where you want to bail. looking back to world war ii, whenever we have had declines of 10% to 20 pgs, the s&p has been able to get back to break even in an average of four months so by the time you spend convincing your adviser or yourselves to sell out the market is probably gone its way back to break even and small cap stocks are quicker taking only three months on an average to get back to break even. >> anthony -- >> excuse me. >> real quick, sam. what would be tell you it's a potentially bigger, deeper pullback event? >> i would have to be really be convinced there's cracks in the

fundamentals globally. we are looking at the u.s. earnings and expecting to see close to 7% increase in third quarter operating results and if this quarter's anything like last quarter we are going to be surprised to the upside by 2% to 4% so i need to see a lot more cracks in the foundation of our fundamental outlook. >> we'll get a good look this week. earnings this week. huge flames reporting. including general electric, google, the banks and other big names. >> dominic chu saying investors might want to pay attention to the names of big movers. dom, with the list we need to know about. >> looking for where the action is going to be this earnings season this time around, what you want to do is look at the companies that move the most after the earnings come out, the day after they come out or the morning, the trading session after they come out. so we took a look at s&p 500 companies for most the activity

upside and downside in earnings reports. so among the best performing stocks on average over the past eight quarters, check out chipotle mexican grill. up 6% in the 8 times reporting earnings. up 6% on average and then netflix shares up 7% on average over that same time span so every time they report earnings on average they go up by about 7%. facebook is also intriguing. up by almost 10% after reporting the numbers and another report you may want to pay attention to looking for an upside move, possibly. the single biggest move on earnings days in the s&p 500 comes from keurig green mountain and over eight quarters up 12%. now, that was helped along by one big report earlier this year when coca-cola announced it was taking a 10% stake in the company here and that's that. downside here, take a look at what's happening here.

alterra down 5% in that time. best buy down 5%, as well, staples down 6% and the worst performing stocks, staples and whole foods, both falling by an average of 6% during their earnings reports over past 8 quarters. guys, it is very interesting where the action is when it comes to earnings in the s&p 500. back over to you guys. >> dom, you are sticking around. anthony, talking a lot about earnings here. the stronger dollar is a late in the last quarter story. it may not have a dramatic impact on the numbers we get now. however, if the dollars continue to strengthen through the fourth quarter that shows up big time in the current quarter's numbers. >> you may see that in the guidance but if you look at what the rhetoric is from many of the central bankers around the world probably going to deal with this fact already at the federal reserve here in the united states. you're hearing stuff from fisher, the vice chairman, hearing things from dudley, the president of the new york fed

and the fact that they may alter the path of monetary policy to offset -- >> feels like dovish around the world with carney today and steve liesman. >> very friendly for earnings if you all of a sudden see the central bankers offsetting the strength of the currency. >> if i may hone in on the airlines and try to show delta, for example, off 8% on the session. united getting hit here, too. airlines you might expect maybe to benefit of lower fuel prices but that's clearly not the case. is it because the lower energy prices reflect demand concerns or the ebola threat potentially and what do you do with the airline space? >> i think the ebola threat is what it's all about. clearly lower oil prices are good for the airlines. this should be a rallying point. i was in jfk coming back from san francisco yesterday. i can report firsthand, not affected the amount of travel. it was a mad house yesterday in 3:00 in the afternoon. there have been a lot of momentum in the stocks. now the wind is coming out of

the bag but i don't think the fundamentals changed for the airline stocks and good time to be buying right now. >> if airlines or something else, are you a buyer of anything in the current market? >> i would. and actually, i think that the small caps is a great place to be. especially given the fact that we are looking at a stronger u.s. dollar. those companies are generally insulated against a strong u.s. dollar so i like small caps and rebalancing in there, i like banks, health care and still technology. >> just do go back, anthony, the point of more dovish tilt lately to central bank rhetoric, today we don't have the fixed income market to look at. it's closed for columbus day and don't have the reliability but the 10-year interest rate is dropping. inflation expectations is dropping and hasn't there been a policy response? >> i think there has and well justified and follow-up on the oil situation. opec production, it's been

increasing. that's why owl eyes on opec for the late november meeting to see if they cut back supply. i think the lower oil prices, reflection of increased supply rather than diminished idea. >> the saudis floated the idea they don't want to take the brunt of cutting production and want other countries to join in and said they'd let it fall to $80 a barrel hoping the kind of shut down production here or slow down production in north dakota but that's not really the case. that was to me a game of cards. think need to get the rest of the opec countries to cut production with them. >> yeah. >> i'm sorry, dom. you want to weigh in quickly before we go on which report or reports you're going to be watching closely? >> i mean, scott, we have talked about this all day. this week is going to be all about the banks and all about technology. there's about 50 -- i want to say 13 companies reporting earnings. everyone is paying attention to the likes of the bank of americas and the goldmans and morley stanleys, citigroups and

jpmorgans and the reason why is because between tech and financials, about 35%, 36% of the overall s&p 500. that's not all of them reporting this week but bellweather names to come to market and give you a sense of the rest of the earnings season to go. energy is important, guys, but still just about 10% of the overall s&p. yes, important. maybe more as an indicator than anything else. back over to you. >> can't wait to hear from intel, especially after the microchip comments last week. thank you so much for being here. with 50 minutes to go and the dow now moving again to the downside off about 60 points. s&p giving up 11. nasdaq off 19, scott. coming up, germany's s.a.p. on the acquisition trail. a $8 billion deal in the back pocket. are they done? the ceo speaks us next

exclusively. leon panetta warned c eed h could take down the financial system. we'll ask if we're tough enough on china. we'll ask you that very same question at cnbc.com/vote. get ready. n, then the bad news on 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) (woosh) (cell phones buzz, chirp) >>and we have to work the weekend... great. more good news-it's friday! woo! ship a pak via fedex express saver® for as low as $7.50. so if you get a trade idea about, say, organic food stocks, schwab can help. with a trading specialist just a tap away. what's on your mind, lisa? i'd like to talk about a trade idea. let's hear it. [ male announcer ] see how schwab

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welcome back. i would say the market is all over the place today but that would be an understatement. dow jones industrials at least for the moment with 45 minutes to go are down .3%. the s&p is back below its 200-day moving average yet again down .5%. nasdaq which was seeing the biggest decline rebounded and now lower, as well, by a bit more than .3% and the russell 2000 up 1% earlier is now backing off that, too. who knows what will happen in the last 45 minutes? it is anybody's guess based on how things traded today. >> i feel like the russell is the one to watch for 45 minutes. the chinese can't book that room for the waldorf just yet. the u.s. officials reviewing the purchase. they're concerned about possible security risks and chinese

sniper snooping because this is where the president stays during any visit to new york. i asked leon panetta about his concerns of the growing number of cyber attacks in the u.s. >> they have the capability to take down our grid system, our power grid, our financial systems, our government systems and virtually cripple this country. we have got to be working together, both the government and the private sector, in order to effectively confront the threat from cyber attacks. i think this is -- this is the battlefield of the future. >> well, we want the know if you think the u.s. is tough enough or champion that's hacking. cnbc.com/vote. let's also get -- >> i was going to say -- go ahead. ladies first. reaction with larry kudlow and contributor and former congressman barney frank. the battlefield of the future,

barney frank. do you agree with the concern here? >> absolutely. i have a great deal of confidence in his judgment and it is obviously the problem. you know, much of the violence in the world is deplorable and regrettable. but it's not a direct threat to the united states because of our physical might, because of our geographic position. but obviously, when you talk about this cyberspace, you know, those oceans don't mean anything. none of the traditional and a physical might is not enough. and so i would very much agree with former secretary panetta. i would add that one way we deal with this stop spending money on threats that don't exist. we still spend a lot of money keeping three ways and dropping thermal nuclear weapons on the russians. we can free up some money and some energy on this. so i very much agree that this is the threat and one of the ways we deal with it is to say, okay, we have spent too much and are spending too much on some of

the past threats. let's redirect the energy and resources. >> larry, the question is, are the chinese at the forefront of that threat? >> of course. >> if you listen to the fbi director james comey he said there's two kinds of big companies in the united states. those who have been hacked by the chinese and those that don't know they've been hacked by the chinese s. that the root of the problem? >> of course, of course. i liked what kelly said. let's get right to the waldorf. i'm near it. we have to do something. you know? we know they're hacking into our economic and commercial enterprises. we know they're hacking into the defense. we they're hacking into the homeland security. i don't agree with barney frank. this has nothing to do with the nuclear defense. this is an entirely different problem. we just indicted five chinese cyber hackers. gootd for the justice department. for a change i defend mr. holder. now, what do we with that?

probably never get them in the court. we should take some economic sanctions here, keep their tell comes out of the united states. stop them from buying up hotels and real estate. whatever. >> are you calling for a trade war, larry? >> i'll take economic sanctions. that's what i call it. until the chinese fess up. until they come to the -- you know, they walked away from the noeshtding table. they walked away from president obama. at california in the meeting last june. so we need to take some actions. all right? they're not our best friend. >> so you both sound like you see the need for aggressive action on this. and barney frank, then, what separates your view of what larry kudlow is saying? >> mainly larry's apparent desire to pick a fight over nothing. i don't understand when he said that he disagrees with me that this is not a nuclear threat. that's my point. resources are not infinite. one of the things i want to do

is take resources we have been spending unwisely and unnecessarily on past threats unrelated to the current one and focus more on this. i very much think we should do that and one of the questions people raise sometimes, well, but aren't we constrained by the fact that china has the debt? they don't buy it as a favor to us. it's the best place to put their money and they're not doing anything about that without damaging themselves. i agree with larry. we should a lot tougher. i would disagree -- >> larry's suggestion is tough economic sanctions. you are saying more or less spend money on the problem. are they mutually exclusive? >> is everybody in a mood to pick a fight? money is part of it. >> i'm going. no. >> you need the public sector. >> all right. i'll put that aside. >> you need them together. >> i agree. >> sanctions, yes. we have been tougher but the way

to be tough is to go after chinese exports to america. i disagree that we should say if they want to buy the waldorf atore yeah and put money in the economy, say no. the president can find another hotel. i am for sanctions of prevent them and punish them for the ability to make money. if they want to assets in america and not strategic, assets, go for it. >> i usually do. i'm a free trader. i would let donald trump buy the waldorf and not the chinese. >> larry, they're not doing -- >> larry? >> i want to take some actions and agree with barney frank about the debt. they buy our debt because it's good for their own financial situation. and they're not going to dump our debt because then the prices would collapse and they'd lose their family jewels. barney, the only point i was making is i don't see a tradeoff here between our nuclear defense and this cyber security issue. i want a fence in between the two and i want to say to you, we need to have better self defense

here at home on top of that. in other words -- >> yes. >> our u.s. government is not doing enough and the private companies are not doing enough to defend. >> but the tradeoff is that one of the things we do -- i agree we should penalize the chinese. i do think we penalize them being tougher on the goods. by the way, on pure economic reasons there's reason for that. they have a one-sided view of trade. american companies are victimized and penalized and pirated. so we should be tougher on them on economic grounds alone. my only point is among the things you have to do is to spend more money to upgrade our cyber security and one way that you do that is stop spending money we don't need on threat that is have passed. >> all right. i'll agree to disagree with this. >> barney, do you think -- >> yeah? >> do you think that chinese really want the waldorf for what it is, for the real estate space? do you think they want

smithfield or for whatever port to get their hands on? do you think they want any other american company or is there some ulterior motive in any deal that the chinese do in this country? >> well, i do think that the chinese better capitalists than they admit and some of what they do is to make money and the question is i'm not worried about them buying smithfield ham. i was a sponsor of the bill that set up a structure that committee on financial investment in the u.s. to block thing that is are strategically dangerous. but i don't think they're going to be bugging people's breakfast through the ham. and if put money here, i don't see how it hurts us. >> i'm saying -- >> last word, larry? >> i don't think you punish them saying they can't give us money. >> look. it is not about smithfield ham but about a shot across the bow. we never seem to do anything with china. you know? let's face it. they're pirating our intellectual property. they're counterfeiting our own goods.

they get away with murder. we go to the wto and nothing happens. >> we want access to the markets for so long. >> larry, let me -- >> one thing you should do. >> we got to go, gentlemen. we got to go. >> not let china -- >> shut down their able to sell to us. >> mr. frank and larry, bottom line, gentlemen -- please. the bottom line is that the people have spoken on the bottom of our screen and that tells ultimately the whole story is 81% of those who voted think we're not tough enough on china so maybe more does need to be done. >> more. including starting -- >> start with the waldorf. >> we have to go. >> thank you both. larry kudlow and barney frank. appreciate it. 35 minutes to go before the bell rings. dow industrials down 85. nasdaq is down about a half of a percent. more than that. s&p negative, as well. and selling off a bit more and whatever gains the russell 2000

had in much of this day, evaporating as we speak. >> a different kind of selloff than we saw with the nasdaq led one this morning. the market keeps changing. we'll get into that more when we come back and jcpenney rising. our courtney reagan has the skinny on the man investors are pinning the hopes on to revive the struggling retailer. stay with us. you, my friend are a master of diversification. who would have thought three cheese lasagna would go with chocolate cake and ceviche? the same guy who thought that small caps and bond funds would go with a merging markets. it's a masterpiece. thanks. clearly you are type e. you made it phil. welcome home. now what's our strategy with the fondue? diversifying your portfolio? e*trade gives you the tools and resources to get it right. are you type e*? ghave a nice flight!r bag right here. traveling can feel like one big mystery.

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weakening here into the close of the dow 70 points. s&p back below 1900. art cashin indicating there's talk of sell orders on the close. we'll update you. the nasdaq was the big laggard this morning. right now the airlines getting hit, scott. >> dominic chu with a round-up of the movers. >> start off with auto retailers like lithium motors following a third and fourth quarter earnings warning. the stock down about 18%. down 20% now. near session lows. taken the rest of the industry down along with it. look at autonation and penske automotive, all moving to the downside and then t-mobile shares lower on word that french telecom company ended the plan to try to acquire the company. those shares there down about 2.25%. tesla also losing ground for the second consecutive session as the rollout of the d-version failed to live up the hype on friday. the stock you can see there down

by about 5% in the trade. and we're going to end with alnylam pharmaceuticals soaring. clinicals of a drug for the nervous system and up 21%. kelly, scott, on today's trade. back over to you. >> thank you. for now. my next guest, company completed a deal for enterprise software company concur and if you do a lot of expenses you may know a lot about. >> yes. website once or twice. >> while striving to be, quote, the number one cloud company in the world. >> joining us now is bill mcdermott, author of "winners dream." it's great to see you again. >> thank you, scott and kelly. >> the deal real quick. it's recent. is the window closing do you think on m & a by vir you of the fact the world uncertain? >> it could be. you know, we focus on what we

will do at the asset after we acquire it and not so much affected by what the turbulence are at the time we do a deal. as we looked at this deal, we looked at land, air, hotel, food, entertainment and the network mash-ups such as saber, expedia, orbitz. think about all of that in one digital network, frictionless commerce for the traveler. talk to any business executive that travels today. they cannot stand the expense report process. >> i was just going to say. anything to improve this, we'll be so grateful. >> isn't it a pain? >> yes. >> isn't it nice if everything you do you do on your device and also have it updated for your cfo and erp system without any paper changing hands? that's what concur does and i always say, we got to get more simple in business. and as jerry maguire once said, you complete us. so they kind of complete the "s"

in similar pal for sap. >> we were having a rousing debate about the security threat with which china, other nations may pose to the u.s. can you talk a little bit about as you guys move towards the cloud and the whole sector really does, what steps you're taking to protect the information in the cloud, how you respond to various governments may or may not try to infiltrate or legally access the information? >> we are fortunate in the sense we're at enterprise systems, large-scale, global enterprise systems for 43 years so the level of complexity in running the world's largest, most complex global companies and keeping them secure for 43 years is something we're very experienced at and we see customers want their cloud in their country and to abide by their standards and we're also complying with that. so we're kind of like when it comes to the cloud, have it your way. where you want it, how you want

it. in the format you want it. but always secure. >> talk about the new book you have. it's about to drop. "winners dream: a journey from corner store to corner office." there it is. praise from some very high places. jack welch, tony bennett, bono. when's the message to get across in the book? >> i'm deeply honored by their endorsement and friendship. i want the underdog to care about themselves and their dreams. as i'm walking in here, i meet frank on the floor. frank says to me, i'm 31. where were you when you were 31? i was getting back from puerto rico on my way to chicago living my dream. he said i want to live my dream and write my book some day. i want every underdog to feel like their story matters. >> did you feel like an underdog? >> absolutely. i talk about my house burning down in long island and on the street corner and we had nothing. not even a house to live in on that particular night.

i came up. one of the first teachers said, mr. and mrs. mcdermott, don't expect too much. a mechanic or a truck driver. be nice. he's a good kid. if you listen to the things that say you can't do something, holding you back, then you need this book. but at the same time, if people think, oh, probably it's 1 in a million to make it, let's be cynical. this guy is a ceo. i get up and i have the winner's dream. i fight for survival now just as i did then and that's what winning's all about. >> the book is filled with examples of different experiences where you've come into a difficult situation and been able to power through it. we have to leave it there now. thank you so much for coming by here. >> thank you. thank you please join me on winnersdream.o winnersdream.org. >> i hope i join you in the winner's dream generally and everyone else feels the same way. appreciate it. pleasure. as i mentioned, markets are moving lower here.

just off 170 points on the dow. the s&p off 22 to 1883. well, the nasdaq was trying to rebound earlier from session lows. morgan brennan will tell us when's driving at the action at the nasdaq and joined the other major averages down now 1%. some sell programs have kicked in big time. >> we lost the russell now in the red. the pros weigh in on the chip sector and slumped to correction territory. is this now a perfect buying opportunity or is something worse coming? we'll be right back. the conference call.

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comcast business. built for business. all right. welcome back. looked like sell signals triggered some pretty big selling. really, last ten minutes or so, the market started to fall out of bed. bounced a little bit off that. look across the board here and you have broad based weakness. i want to note, too, the dow if it closes where it is now, lowest close since august 2nd. s&p would be the lowest since may 23rd. closed at 1900 then. >> watching a couple of people trying to figure out what's

going on here. cash futures about 1879 and going out below taking out the overnight levels. we close, traded better today after europe closed but lately it's been sharply negative. keeping an eye on it. dow off 133. and dominic chu keeping an eye on things at headquarters for us. hi, dom. >> i might be able to part of when's happening. airline stocks. there's a couple big ones in the s&p 500 hit hard today. you would think with low oil prices they're getting a lift but you have the ebola fears and fears of a global economic slowdown and taking the toll on the sector. delta and southwest are big in the s&p. united continental, american, hit hard. they may not be a huge part of the s&p but as a group the single worst performing industry group within the s&p 500 today. back over to you. >> thank you, dom. you heard our guest top of the

hour say he thinks it's a buying opportunity. we are seeing the nasdaq crushed worst than most averages. morgan brennan taking a look at what's working and not in tech, morgan. >> hey, kelly. i'd say a choppy market in the nasdaq composite but it is a roller coaster ride. down .9%. though still off the lows of this morning down about 9% this morning. the story is economy conductor stocks. the semiconductor index and the stocks down about 1%. and this is after last week's steep selloff on microchips revenue warning. the index trading in correction territory from the recent september high of porl focus. intel that's in the red ahead of earnings after the bell tomorrow. but we're also seeing the selloff in so-called momentum stocks. gopro walloped today down about

8.5% that a company camera involved a ski accident. other momentum names of tesla, priceline, netflix all moving to the downside today and we are seeing this as investors continue to move into more defensive stocks, even within the tech sector. mega cap companies like apple and announced more markets for the new iphone models and facebook which j and p securities just upped the guidance and price target for are outperforming relative to the composite and note that apple is now trading in the red. there you have it. >> exactly. morgan, this as the vix spiked to about -- spiked relatively speaking. this is not a spike by a massive historical standards. >> as low as 13. >> week or two ago. >> hibernating. definitely spiked. relative to where it was. >> doesn't it know we're heading into the winter? earnings are ramped up. google, netflix soon and then the avalanche starts. >> what can we expect?

bring in mark mahani and should we be all of a sudden concerned about what tech will maybe not only the numbers but the outlooks especially after last week after noise out of the chip space? >> well, we got two conflicting things going on. we heard from ebay announcing that spin of paypal. they reaffirmed guidance for the september quarter, so at least the overall demand trends should be intact. that's a pretty large data point. but the negatives are what's coming out of europe. this is a very large market for all major large cap tech. you go google, priceline, amazon, ebay. all 30% plus so their revenue and profits out of the region and reduced estimates by 5% because of that fx exposure. that's the head wind to the guidan guidance. >> throwing in the stronger dollar, that had to take a toll,

too. >> we were just talking about the dollar there. if the european markets really roll over hard and we go back into a recession there and a demand impact on the businesses, you will see further cuts to estimates. that's downside risk. >> gotcha. >> larry, what about you? where are you buying and selling? >> well, i tell, buying right now is continuing facebook. you need to be in the evergreen models and that's why you look at facebook, continue to grow. i said last year it's $100 by the end of the year. i theic to that. i think after the earnings call they blow it. video advertising and instagram. apple is going to continue to go up. i have it at $120 stock not just because of the great products and 10 million iphones stole but the enterprise and the ibm and the content and the pay so once again you need that evergreen model. microsoft, i've been with microsoft a long time. continue to buy it. continues to go up. i've been saying it for years

while everyone's saying it will go down. up almost 20% this year. it continues to pop. they have a ton of cash. 85 billion in cash. so while all these other speculative companies are out there and people stay away from tech i like to stay with the main evergreen sticky models to continue to take off. >> a question, though. what about the comments of microchip and the other the way intel sold off on globally speaking the tech cycle is turning? does that concern you? >> doesn't concern me at all. if you're in the right names f. you're in a lot of speculative names, worry about it. >> speculative names? as it relates to chips? i mean, you're writing off completely what this guy very well respected or a company that has a supplies a lot of companies, what he said? i mean, what's speculative about the big chip names, whether it's intel or qualcomm or the other names? >> i mean, you could have some issue with the chips out there. i don't believe what he said. i don't believe it's fully

hitting it down the line and a short-term issue and a matter of belief. i don't think that's long term. >> okay. guys, thank you. larry, mark, talk to you soon. >> thank you. 15 minutes before the bell rings. the s&p 500 down 23 points. >> and the vix is up. tech investor speaking with us exclusively after the close. wait until you hear his take on techs and where they go from here. up next, jcpenney taps a home depot executive as the next ceo. courtney reagan has the lowdown on the new boss. 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.

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welcome back. we'll look at jcpenney which should still be gaining ground. the retailer tapping a home depot executive as the next ceo an shares no surprise are hit by the market. they're negative by 1%. still kind of outperforming. >> courtney reagan joins us with a closer look at what this all means and when he'll take charge and maybe, too, the timing. right? jcpenney had a big analyst day last week and made no mention to

my recollection that anything like this was coming. >> that's exactly right. it is the news that many did expect last week during the analyst day. the retailer has named a successor. evp of stores for home depot joining jcpenney this year. ellie son won't take over as ceo until august 1st, 2015. on that date, mike ullman is executive chairman. on wednesday, i asked him what the plans currently were since the company said it began searching for the successor more than a year and he said it wouldn't be appropriate to discuss it publicly and always been prepared to stay as long as necessary. he indicated that there weren't plans. i'm told that jcpenney would have loved to announce the new role at the analyst meeting an the timing didn't work out. they went able to. read into that what you will. so far analysts are positive on ellison and spent 15 years

before home depot at target and top contender for steve blake at home depot and and highly regarded and analysts were pretty positive on the news this morning and as kelly said, shares were higher before they were tuling down further by the market. >> thank you. and for those falling along, the market down 190 points. the vix has jumped and get out to dominic chu for a market flash. >> one of the bigger decliners so far, bio technology stocks, another industry group hit hard here. the nasdaq bio tech index in the red and has been all day long and moving toward the session lows right now. among the biggest losers are large cap names we talk about all the time. biogen idec and tough day overall for those names among the worst performing industry groups here in today's session. back over to you. >> okay.

dom, thanks so much. a note here the dow and s&p on track for the worst three-day loss since november of 2011. and many of the internals just within the market also are getting pretty ugly. transports are heading for the worst three-day loss since september of 2011. nasdaq for the worst loss since october of 2011. >> art cashin just -- >> russell, mid caps, worst three-day loss. excuse me. i'm sorry. >> great point. art saying what's put pressure on equities heading into the close, there's significant amount of sell orders on the close. those coming down to the tune of about 400 million and exerting pressure. as you can see, also possibly pressure rightly or wrongly ebola. take a look at lakeland hazmat suit maker up 35% today. the airlines off to the tune of 5% to 8% for the huge cap names. and that's probably not helping. off 192 points with about 10 minute toss go. coming up, low oil prices great for nearly everyone,

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street. the dow now down more than 201. joining us is mike leer and bob pisani. bob, i don't know what positive anybody can take from this. i don't think anything. this is not encouraging. >> no. and i think the real problem is we are dealing with an enormous x-factor here, the ebola issue. it is impossible to model for how this might affect the global economy. hopefully little if at all and how it might affect the stock market. we see airlines down today on no particular news and vague concerns floating around on that. and that's problem. we can't model this very well and because of that people just step back a bit. >> the market was all over the place. encouraging signs in the day to get an oversold bounce and then the rollover in the last 20 minutes. the dow down 220 points and fading fast. >> yeah. >> what's it tell you? >> not a whole lot. i mean, there's been a -- this is building for a while. how we have been positioned is

little bit high cash. expecting something to drive the markets lower. but not really -- we hadn't determined a catalyst and now seeing some of that selling pent up for a while. >> what's going to change the narrative a little bit? hopefully -- >> something has to change sentiment. >> earnings will change things a little bit. this point, so much negative sentiment built in. oversold sectors. energy in particular. no bounce today in energy stocks at all. >> had a bounce in small caps. fell out of bed. hold the thought. you are coming back and closing countdown after the short break. after the bell, the cdc doesn't know how a dallas nurse got ebola. we are live at the hospital. don't go away. [ male announcer ] your love for trading never stops.

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the all new, head turningt cadillac ats coupe. y use it's irresistible. ♪ all right. welcome back to the floor firefighter closing countdown. the stock market is looking pretty nasty. the major averages, dow and s&p, looking at the worst three-day loss in years and focus remains on the small cap space. russell 2000 bounced significantly in the day but then a lot of selling again into the close. really in the last 20 minutes, the market started to deteriorate yet again. you can see the bounce here throughout the day. this is the iwm, the russell, the small cap etf and load of

selling toward the latter stages of the day. momentum names shaken, as well, today. netflix, gopro and tesla. questions about ski accident relating to the camera maybe adding to a little bit of selling there. you get the point of them and the big momentum names selling off considerably. let's bring in mike lear, bob pisani. what changes it? what do we need to see? >> changing the narrative and i think it is earnings. what we need to have is u.s.-based corporations to say that the economy is getting better, we are seeing orders improve, revenues improve overall. we haven't heard that yet. great numbers from coca-cola last week. i want to hear about long growth. i'm a little worried long growth isn't as strong as people think. >> just of the concerns building up, you have the stronger dollar. throw that into the mix with

ebola. a number of things. >> yeah. there's a lot of concerns out there and a lot to be positive about. i think you have seen the picture for consumers improve a bit. you have unemployment lower. you had gas prices, oil prices lower. so i think that's a good thing for the consumer. >> okay. that does it for us. second hour with kelly begins now. thank you, scott. welcome to "the closing bell," everybody. i'm kelly evans. wow. what a day. feels like seven days on wall street today. very different picture in the close from what we saw midday, from what we saw at the open. here, in fact, is how we're finishing another rough session across wall street. most of the damage done in the last basically 30 minutes in fact. the dow jones industrial average shedding 223 points at the close. the nasdaq losing 62 points. s&p off 31 to 1874. and even the russell, the small caps, which looked like they would stay in the green today

and maybe lead everybody higher, instead turning lower closing lower at a level about 1049. what to make of it? let's bring in today's panel. joining me now steven wood, carol roth, and kenny pulcari fresh off the floor. also with us, guy adami. kenny, was it sell orders? >> technical levels. breaking 1906 this morning on the s&p, it was struggling all day with what to do, what to do. sold off, rallied back and then hit resistance and just like friday as we got into the last hour of the day you could feel the momentum. right? you could feel the pressure on the market and closed it right on the low side. >> some guys describing it as an emotional selloff into the close and may have been prompted by ebola. a nurse with ebola causes every

stock in the universe to go negative? >> no. i hear you. listen, negative, they throw every negative story. i think it's much more technical and here's the other problem. once it starts to break the technical levels, the buyers know the al go rhythms and needs on itself. so it becomes a self fulfilling prophesy. >> any good news in this, guy, is it to hit the key levels and people look for the bottom-feeding opportunities? >> maybe. you know, you when you say things are going lower and i've been in the lower camp for a while, you know that. >> i do. >> people accuse you of fearmongering. first of all, it is not the case. second of all, the opposite is just as bad if not worse to be honest with you. the glib people that basically tell you to buy every dip. you bet carol on since the spring telling you worried that the divergence leads to this and

now you have it now. i will say that i was in that 1904 camp and if, you know, six months ago if it traded down to that level, the open we had today, the subsequent rally that we had, this market would have closed 20 handles higher instead of where we did today and feels different. i think 1863 is huge support. and 103 in it iwm. >> carol, what does your crystal ball tell you now? >> i'll give props back to guy and been beating the same drum and we have been getting beaten up on it. i'm comfortable about this. sort of similar to guy. i'm not really particularly searched. i think that what you have to look at is the duration and particularly earnings season. i think we are going to see a lot of volatility. a lot of bouncing up and down. the bar is moved lower so i would imagine we're going to see a lot of quote unquoter andings beat and drive everything up

temporarily higher and fear enough in the market to see it bouncing around up and down. >> let's talk fear and fundamentals. fundamentals have changed. worse on europe. understandable, fine. what about the fear and, look, again, we have a series of ebola headlines late in the session. a spike of shares of lakeland making the hazmat suits up 35% or thereabouts today. airlines, like delta, off 8% today. so is that, if it's a fear versus fundamental selloff, what does that tell you? >> that's part of the part we do is figure out is there any there there? the fundamentals in europe getting bad and bad news good news a few weeks ago. the european central bank to get very, very active very, very soon and they will. you're seeing separation of draghi and the european leaders. i was at the bank of japan presentation last week. the japanese will continue to printing money.

the europeans will begin it and puts off the federal reserve maybe a little bit as the fundamentals are not improving dramatically so i think the fundamentals haven't shifted all that much in the last couple of weeks. >> when you get the fear, they talk about the ebola being the fear, it's those kinds of situations so, so short lived, right? doesn't affect the long-term investment thesis at all. >> look at all of the fear that we have had over the past couple of months everything that's gone on with ukraine and syria and iraq and isis, you're going to tell me that ebola is the the one to take us down for the long term? i don't think so. >> no, no. i agree with you a thousand percent but once the technicals broken, it feeds on itself. until guy said 1860, wherever you think it is. >> i see guy's not talking about 1830. so what about that? you saw the action today, especially i keep coming back to the airlines and huge names with huge declines. is this a reflection of the fact

it's columbus day and less liquidity of another day? >> i think that's part. listen. i want to dance around this. i don't want people to label me as a wacko but you have to believe -- >> too late. >> the headlines are not -- they get worse before they get better. and it doesn't matter how the disease is transmitted. if people are scared, whatever it is, getting in the subway, their car, a plane, that's going to affect behavior and then it starts to feed on itself and, again, i'm not saying it should happen. i'm saying this's what can happen. >> understood. >> i can't believe that the headlines can get better before they get a little bit worse. >> so -- >> we've been asking for two and a half years when would we have a correction? we haven't had one and that historically speaking is what investors need to take into account. >> where we stand after the brutal beginning to october, down 7% from the intraday highs

on the s&p. against the backdrop, stay right there. ben white now from politico for his thoughts on this volatility. and, ben, you think it could impact the midterm elections coming up, too. >> it could. as my friend carol said, we are bouncing around here like crazy on the dow and the biggest problem of democrats in the midterm is economic anxiety and the fear of moving in the wrong direction. your poll had 24% saying they trusted obama on the economy. nobody votes on the stock market but adds to the sense things are slightly out of control. people not seeing the wages going up. that's trouble for democrats in vulnerable incumbent seats like louisiana, north carolina, where they're really just trying to hang on in the last couple of weeks of this campaign. a crazy mrkt in addition. that's a recipe for incumbent losses and matters. not directly. part of the context. >> for those looking for essentially whether's there a

gop congress that comes out of this, larry kudlow saying if that happens, we get corporate tax reform in the spring. we know that the senate needs a six-seat pick-up to switch to a gop heavy assembly, if you would, are you saying that this volatility makes that more or less likely? >> i think more likely. at the margin. it is not the thing that decides the election. but it is one more factor adding into what is a very difficult environment for incumbent democrats saddled with an unpopular president and people anxious about the 401(k)s that hurts incumbent democrats and more likely to get that six-seat swing to republicans. i think if the election were today we would get that. not as optimistic as larry of corporate tax reform. >> few are. >> i'm not. i'm down on washington in general. there's a better chance with a republican senate.

>> ben, you know how much i love you an adore you but i'm going to say that the market has absolutely zero affect on whether the gop or democrats take the senate. >> just so absolutely wrong. >> no. no. you are absolutely wrong here. the people are voting with their pocketbooks and what is happening on main street, most people have no idea what's going on on the stock market day-to-day basis. we could go up 1,000 points and the gop will take the snth. >> i think they will but i think people do, they see the headlines on cnbc, they see the evening new quhs the market is going crazy and doesn't mean they're involved in the market or day traders but consumer is an overlay and i don't think they're that far apart. it's in a context of anxious nation. anxious america. >> it's an excuse and an excuse in case the democrats lose. >> we have a month to go until that event, steven. >> yeah. i think that the likelihood to

get structural tax reform is very, very low and where are some of the issue that is there's overlap of the president and gop congress? this happened to bill clinton in the mid-1990s and there were things that were agreed upon and ask him where does that go right now? what do they agree on? >> immigration reform is one big one where if there's a republican senate and they can get something to the president's desk he'd want to sign it. very muches want to do immigration reform and the problem is 2016 republicans trying to stop anything comprehensive and two things to look at is immigration reform and tax reform with a republican senate and both of those in play on the table. not by any means a done deal on either but do some business and probably good for the economy i would imagine. >> we have to leave it there. guy, before you go, a word. again, is this the kind of pain on the street activity now with this late-day selloff that makes people wade back in? >> everybody and you have had people on the show, everybody wants -- i want the dip.

i want the market to sell off making my list. making my list. looking for the selloff and then get it and everybody gets in their clam shell and this is what people are praying for. right? this is the opportunity they've been waiting for so take advantage of it. i think printing 1860 in the s&p and bounce. tremendous trading opportunities if you're so inclined and point one thing and out beat this drum now for a while. don't discount everybody and their mom saying rates are going higher and telling people they're going lower and i think they continue to go lower because of deflationary press e pressures globally which is not bullish. >> well, we can't wait to see the fixed income markets tomorrow. please note the heavy sarcasm there. guy, thank you for being with us this afternoon. catch more guy on "fast money" at 5:00. it's a new week. just today after sailing in a sea of red late last week, where can investors find safety and a

profit? roger mcnamee is about to weigh in. stay tuned. 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.

welcome back. it was a pretty tame day on wall street until the last hour. even last half hour. that's when stocks really began

to plunge and bob pisani joins us. >> all anybody wanted was to move sideways to build some kind of base and started out okay and then last hour hit. take a look. it was pretty tame up until that point. and then the volume started to pick up in the last hour and we just drew more than 160 points in the last hour. a lot of this on vague concerns of ebola. just very difficult to model what might happen. hopefully very little. but that's the bottom line. travel stocks, delta down notably. some of the use ships down 4.5% there. lakeland, never on anybody's radar, makes hazmat suits. up dramatically today. not a typo. 47% increase in lakeland today. looking for oversold bounces in several areas. we talked about the russell all day. iwm for the russell 2000. a nice move up on heavy volume and then kind of fell apart.

same situation with the xpo. we never really got the bounce we were anticipating there even though oil did try to rally in the middle of the day. see it closing at the lows of the day. similar with semiconductors. another very oversold group here. same situation. never really rallied and just moved -- drooped lower on the end of the day. we want to look at the -- there's the xxd and pint out the vix here. 24 and change here, folks. this is a two-year high for the v ix. i said it many times, over 20 i start to pay attention. i'm paying attention right now. kelly, 3.4 billion shares i believe that we just did. we are on the heavy side here. i have to get the final numbers here but on friday 4.5 billion shares from the nyse altogether. that's the fifth highest volume day of the year and definitely getting volume back. remember the light volume days?

gone ire a gap lower. bob, stay right there. we want to bring guy adami with the panel. kenny, we were talking about volume. >> the fact there was such high volume on a day that's a holiday and people out and goes to the angst and anxiety and other side of the fence like guy was saying before, this is an opportunity for the long-term investor. for every seller there's a buyer. there are other people on the opposite side of the trade putting trade on and believe what guy and they were saying. >> back to the ebola thing. what did happen towards the end of the session today, reports of potentially a plane in boston where there was a hazmat crew looking at a potential case of ebola. whether or not there's anything that the plane turns out to have involved or whether -- just the psychology of the selloff tells you something and shouldn't it typically tell you that's the kind of scenario where people are overreacting?

>> absolutely. and it feels like capitulation and what you need. you really need like they're throwing everything out including the kitchen sink to find the bottom and it didn't -- i mean, getting to feel like that, certainly the up tick of volume makes it feel like that. >> guy made a relevant point and won't make you repeat but about the fact, look, if people react to the headlines in a way that does impinge on activity, economic activity, you can understand a bit of the pressure but, steven wood, there's a fundament fundamental concern at play, too. >> i think so, too. the battle for the previous generation is inflation and everyone has an intimate experience especially over 65 years of age and the battle for this generation is deflation and looking at the global economy, growth rates looking at central banks to do, the role to play, we have to adjust investment perspectives accordingly and

calling this for years the squeeze play. the federal reserve and the bank of japan and the european central bank and the bank of england they're going to conspire to squeeze yield and create a different investment dynamic. you need to update your investing strategies, lower growth, lower inflationary environment. and adding volume; not just equities. >> that's right. >> take advantage of that. >> i think the bigger issue, i think everyone feels like europe is slowing down. asia's slowing down. that america may be the one place that is going to be battling its way out of it. what i'm looking for heading into the middle of earnings season, the earnings numbers, the forward guidance and going to be the tale thatlets us know if we bounce out of this or not. if we get forward guidance, companies aren't having the confidence, that acts on top of these global issues going on. >> go ahead, guy. >> for the russell 2000 dropping because that's a u.s. based

largely u.s. based company so most of them less than 15% of their earnings from overseas so that should be doing better and the fact it's snot really a little bit disconcerting. >> that was bob. sorry. guy? >> i've said this to you before. earnings growth without revenues growth is not growth at all. it is financial engineering and i think we would admit is going on and the funny thing of oil and wanted to discuss that quickly, we race and rant against the speculators when oil from 80 to 120. speculators, speculators, speculators from 120 to 80 which it's done, nobody says a word. and don't for a minute disdoupt fact that oil going lower is not nearly as bullish as everybody makes it out to be. it's this tax break for the consumer. >> absolutely agreed. >> i think it is bad. >> this past decade, oil and equities and growth positively core lated and hope it's different now and that's what

we're pinning our hopes on. guy, thank you for real this time. and bob, really appreciate it, as well. crazy close there. what should investors make of the market and especially tech? will people be holding off on investments? start-ups even. we'll ask roger mcnamee. and what is the bigger threat to the u.s. -- is it ebola or is it isis? >> the bigger threat to america is isis. frankly. than ebola. isis is out there and it's not going away. >> is tom brokaw right? a former top military official has his own ideas. find out what's keeping him up at night coming up.

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welcome back. markets continue to be volatile today closing down triple digits again. the dow down 1% for the year. where do stocks go from here and where are the best opportunities? well, with us now in an exclusive interview is roger mcnamee. roger, great to have you with us. do you think that what microchip said about the semi conductor cycle broaddy speaking turning, coming an end send a chill up your spine? >> you know, i really think the way to look at the tech sector is look at the high teens of a percentage of the economy so it's not a single thing. there are a lot of things going on within it. and the part that microchip

touches is very broad duh not the whole definition. the truth of the matter is that the tech sector today is -- it's a very large, very mature sector and the good thing is that stocks like apple and google are really inexpensive so you don't have to believe in an industry wide recovery to find places to invest today. >> i guess the question, though, is not about a recover ri at this point but whether things having gotten -- i would say frothy, exuberant, but, you know, we have gone well past recovery, haven't we? i guess that's the concern here that this is telling us about some deceleration. >> let's be careful. i mean, $19 billion acquisition of what's app maybe a pretty reasonable deal. the thing that concerns me more are valuations played for uber and the like, and there i do think things are totally out of control but again, it's not a monolithic market. my view of the thing is that we're correcting right now for

really obvious reasons. chaos has risen all over the world. the republicans in congress are trying to win news cycles and as a consequence have done things like cutting the funding to get rid of ebola. we had a ten-year program for ebola and they undercut. and thso, to me, until we see everybody on the same side of the ball, it's hard to be confident in anything other than t-bills. >> you know better than anybody it's uncertain out there and people in washington use it. i'm frankly confused to hear you say it. >> i'm serious. whether it's putin, whether the middle east, going on with ebola, what's going on with european economies and going on in china's economy, there are plenty of reason to be concerned and climbing that wall of worry steadily for two years and we shouldn't be shocked. i mean, you know, having a correction now seems like a totally reasonable thing to do. >> it's interesting the point you made, as well, about the

extent of the frothiness building in the public companies and getting the price discovery. steven wood, focusing on the publicly-listed companies, perhap that is the problem. >> i think so. we're doing work on valuations, u.s. and globally. i would ask mr. mcnamee, what are his views on valuations? it's a component of what we're seeing right now. >> it depends where you look. apple and google trade meaningfully below the multiple of the s&p 500 with enormous cash generation and lots of growth. i distinguish it from the s&p itself largely in the game of moving, you know, peas around underneath walnuts and doing tax games and not real growth and i think that part of the s&p is a very hard thing for investors to be enthusiastic going forward.

>> this is carol roth. i have a question about the government since you brought it into the discussion here. it seems to me that the government is sort of in the opposite camp of technology. technology streamlined everything. made everything more transparent and we have a government that's moving in the opposite direction. when will we see that convergence and tech effect get into the government? whether -- regardless of the side of the aisle you're on, that seems to be the bigger problem is the fact it's so big and bloated and can't ploouf as quickly as we need it to. >> technology cannot overcome the active undermining of our economy by one of the political parties. i mean, that's the real problem. you know, as long as one party believes that -- either party believes it gains advantage subverting the economy, we have issues. to me the remarkable thing is globalization allowed u.s. companies to put up good numbers in the face of some of the worst governmenting we have seen in my lifetime and again you can accuse the president of one thing, accuse the republicans of

another thing but the truth is that the republicans have been -- they have made a choice and, again, it's america. people get to make choices. i sit there and say, wait a minute, i don't need to be long stocks while this nonsense is going on. >> i'll add before i hand it over to a panelist i don't think that it's the republicans or the democrats. i certainly think that both parties have a hand in the situation. >> come on. that's ridiculous. that's ridiculous. >> this is going on for -- >> only one side is undercutting the government. >> deficits going on and inefficient use of capital, as somebody that puts capital to work, i'm surprised to hear you say capital is being put to use efficiently by one party than the other. >> i'm not. it's impossible for the government to put capital to work efficiently if the two sides aren't laying together. if you take an issue like ebola, it is simple. infrastructure. you have to want to do it. if one side doesn't play with the other, you won't have a productive government.

i agree with the government right now is a horrible misuser of capital but that's because one party made that a strategy. i respect that. that's how they think they will win. as an investor i have to make choices based on the consequences on that and ignoring climate change, ignoring ebola, those are not healthy things for us to do and those are not going to be good for stock prices. >> you know, this is steven wood with russell and i like talking policy but not politics and bringing you back to revenue. we have been saying for a while now at russell this is a top-line driven market. no fig leaf on the top line and that security stock, revenue going to drive by the year's end performance within the market and if you could have some observations on that. >> where do you see the opportunities, roger? >> i'm a huge believer in long-term fundamental investor and the tech sector offers real windows. my focus has been on apple,

google, facebook and alibaba. these are four incredibly successful and incredibly well positioned companies with real growth going on and in each case, the growth rates at apple and google will not be huge but the stocks priced in a way you don't need them to be huge. facebook and alibaba larger rates of growth and more risk, more volatility. i would stick to those. getting away from that-you know, you are subject to a lot of forces you may not be able to anticipate. >> we have to leave it there. kenny is uncharacteristically quiet in this politics. >> i tried to -- >> i'll make one observation. >> i'm a view and opposite of his. >> trying to pretend politics doesn't matter won't solve the problem. >> this feels like an awkward dinner party. roger, thank you. >> that's why you brought me on. >> yes. it is. absolutely. we appreciate it. we'll air it more fully going

forward. ebola fears adding to the anxiety in this market. a nurse in texas that treated the first patient to die in the u.s. tested positive for the virus. how exactly did she get ebola and does the cdc really know how this deadly virus spread? we'll be right back. in a world that's changing faster than ever, we believe outshining the competition tomorrow quires 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.

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how did a nurse in dallas contract ebola? the head of the cdc doesn't know. mega terrell is in dallas. what's the latest, meg? >> reporter: hey, kelly. that's right. the health care worker was involved in the treatment of thomas eric duncan who passed away here last week in dallas. hers is the first transmission of ebola here in the united states. health care monitoring others saying it's possible others were exposed and more cases an ennot known exactly how she was infected. but they are looking at a couple different things and saying when he received intubation and dialysis and could have been potentially high risk procedures and removal of personal protective equipment could have been a time when somebody was contaminated. looking at ways to make

treatment and care of patients easier in hospitals saying that the team involved should be kept as small as possible. pru procedures limited to those essential and one person make it the only job to oversee infection control at hospitals. cdc director saying every hospital needs to be prepared to diagnose ebola patients. >> the single most important thing for every other hospital in the country to know is the importance of taking a history of travel. that if someone has fever or other symptoms that could be ebola, ask where they have been in the previous 21 days. and if it's to liberia, sierra leone or dwi kneguinea, consults and we'll go from there. >> reporter: so a lot of questions being raised of preparedness and the texas nurses association saying there are a few things to do to help

if they present with a fever, make that clear right away and they should also say whether they have traveled to anywhere outside the country. kelly, back to you. >> yep. sounds pretty obvious, megan. stay right there. if you would. bring in the panel to discuss and remind people again looking at what happened in the market today, we can't rule out that some concerns about this spread in the u.s. had something to do with the late-day selloff. >> and the plane in boston, headlines create the anxiety. is this happening in france, germany, and italy and spain? are they dealing with this the way we are? we haven't heard about it s. that causing even more global angst? >> and is that the mentality, kenny, of the people around here? in other words not just about what you do know and the information represents about howl that you don't know. >> i think it's the phrase of aversion behavior. i know that the imf came out saying within africa the cost is going to be about $32.6 billion of people not going to school

and not going to work, not going about their normal routines because they're afraid of what might happen here. and that's the potential cost here in the u.s. and we need to be on the lookout for. and because there's misinformation out there and the true costs really could end up piling on. >> steven, give us context here of typical market reactions. is it -- do you expect further weakness? like a wildfire? market weakness until there's clarity and been contained or too much emphasis on one virus? >> there's a report in spain and the united states. so i think right now it could be that, you know, it's a contained situation and markets are reacting to it because they price in worst-case scenarios sometimes. going back, look in the three legs of the stool, corporate earnings and revenues and the macroeconomic performance globally and the united states, that's what people need to look

on. railings of a rope bridge, keeps you center. >> meg, it is interesting. not as if ebola came to the u.s. right after it first started to spread in west africa. it is many, many months now. it would seem like the first thing the cdc would do is simple procedures to deal at the local level but when we had michael leavitt on the program last week, he said you have to rely on local authorities and not national ones. >> reporter: there's been a lot of questions of who has control here. cdc defers to the states and in the communications, sharing the stage in texas. not trying to assert themselves and folks are saying it's time to do that. i was talking with scott gottlieb now with the american enterprise institute saying regional hospitals need to be able to take in patients because you can't every single hospital to be able to care for patients. tom frieden saying they need to

diagnose and isolate and can every hospital be expected to care for patients here in the united states? maybe the cdc needs to be able to take more control. >> and finally, meg, what is the status of the nurse there where you are in dallas? >> reporter: sorry. could you repeat that? >> what is her status, the latest that you can tell us. >> reporter: we have heard that she is currently in stable condition. >> okay. we'll be following that throughout the week. >> reporter: we're also hearing and getting some reports of her name, i believe nina pham is her name according to a family friends. >> hope that she is able to do something with the help and some of these drugs to survive it. mega terrell in dallas for us, thank you, meg. just working oornd the clock to follow that story. ebola gripping america. tom brokaw saying we have bigger problems. >> the bigger threat to america is isis, frankly, than ebola. isis is out there and not going away.

>> up next, retired air force colonel layton joins us with his take on the isis strategy. and investor and "shark tank" star mark cuban likes to fancy himself of an expert on how to help the economy. capping the student loans and could be on today's hot list. stay tuned. [ male announcer ] your love for trading never stops. so open an account with schwab. and when a market move affects, say, a cloud computing stock you're holding, we can help you decide what to do. with tools that help you see how market activity is affecting your positions. so when the time comes to decide whether to scale in or scale out... you can make your move, wherever you are. and start working on your next big idea. ♪

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selloff at the close. just even in about the last 30, 40 minutes of trade, the dow giving up 223. the s&p 500 hitting some key levels. volume was reasonably high. the vix jumped above 23 and adding to the angst in this market is the isis threat. now knocking on baghdad's door in iraq. in fact, on "meet the press" yesterday, the topic is ebola but veteran tom brokaw shifted it to isis. listen to this. >> the bigger threat to the u.s. is isis than ebola, frankly. we have a system in place. a few deaths. it is a big, big crisis in west africa. it is the reality of the global world in which we live, but isis is out there and it's not going away and the system that we have in place for dealing with it is going to take a long time. >> let's get reaction now from retired air force colonel layton with the panel. colonel, welcome. thank you so much for being here, and do you agree with tom brokaw there? >> great to be with you. yes, kelly, i basically agree

with tom brokaw. a big thing you have to look at is a disease like ebola is something that we're working to contain. we haven't really found the formula yet to contain isis and that's the big difference. >> what about the current strategy? is that helping or hurting do you think? >> oh i think the current strategy against isis is definitely hurting. it is not working and not a full use of the military power or economic or diplomatic power against isis and difficult to implement strategies of this type but it is a very really poor response and it's a response that doesn't involve what i would call the whole of government approach with the defense department, the state department, treasury, all the other places that, you know, have something to do with containing terrorism and put them altogether and we really haven't done a coherent job of that in my opinion. >> come yell, first 0 of all, thank you for your service. but i also want to ask you, when's the right strategy, particularly in that area of the

world? because it seems to me once we contain one group another one pops up. we saw it with al qaeda. now isis. could be somebody else down the line. how can we contain this evil in this part of world and wipe it from the face of the snert. >> that is 2 really difficult question and those are all great points. one of the real issues we have here is containing the way in which they do their propaganda so you have got young people who are constantly bombarded by this kind of stream of consciousness propaganda from the isis group and it's a very difficult thing to counteract if you're not present there. i was advocate a presence in the region. doesn't necessarily mean a military presence but a diplomatic and economic engagement in the area and it means providing hope to a generation of muslim youth that really doesn't have that hope right now. >> wait. well, colonel, as well, i thank

you for your service to the country. >> thank you. >> i should say part of the hope is basic things like education and the quality of life and fresh water and the ability to improve your life because the problem is in that part of the world there is no hope and so, therefore, they get dragged in as children and they hate america and they hate anything westernized and it's this poison that infects their brain and can't get rid of it. >> that's the whole thing. excellent, really an excellent analysis into your question because what we're talking about here is changing the education of millions of people in the muslim world right now. there are elements of the muslim world that have pro-western and also significant elements as we see with isis and al qaeda, and a whole bunch of other groups, that doesn't have that entity, that real desire to go after a good, coherent let's go after the facts, let's be rational about this type of educational system and something that

requires not only our help and requires a look at within the arab world as well and that's a very difficult thing to achieve and can happen engaged in the region. >> steve wood here. i, as well, thank you. it strikes me that a distinguishing characteristic is financial access. and access to wealth, what would you recommend there? >> in a world, colonel? >> i would say cut their supply. cut the way in which they can get money. you know, of course, when you rob a big central bank like the bank of mosul, there is a huge flow of gold and other elements that the isis forces were allegedly able to get. gives them a lot of money. and that's the kind of thing that you have to prevent as much as you possibly can and cut it off at the source. >> colonel, thousand. appreciate it. come back. lots more to discuss. >> you bet. straight ahead, we're going

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for more on what is on the hot list, allen wasser joins us. >> markets, markets and then markets. especially with the afternoon going the way it was, market coverage is just blistering up the website right now. right now we put out an explainer of what a 200-day moving average is. because, you know, we throw these technical terms around sometimes and not everybody is up on it. that's doing real well. then we have a piece from jeff cox. he is look agent the super spike almost in the vix. it has gone up 74% in the last three months. now that's feeding into people's fears about which way the market is likely to go. and then finally we also have the interview up from this morning. peter thiel, the well-known venture capitalist out of silicon valley, he was on our air on "squawk on the street." we put his interview up there. people really focusing on his comments about how he sees a massive government bubble in the bond markets and what that's doing. >> the tech guy turns around and points a finger back at the government. i love it. >> exactly. 130,000 people have already read

that story. and it's still burning up there. so all that blending into basically a big market theme today. >> maybe a little help from drudge. thank you, allen. good to see you. earnings season under way. csx, intel, wells fargo all out tomorrow. coming up next, we'll ask the panel what they're watching and what they expect to see. ce. turn ocean waves into power. design cars that capture their emissions. build bridges that fix themselves. get more clean water to everyone. who's going to take the leap? who's going to write the code? who's going to do it? engineers. that's who. that's what i want to do. be an engineer. ♪ [ male announcer ] join the scientists and engineers of exxonmobil in inspiring america's future engineers. energy lives here. sometimes they just drop in. always obvious. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets

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welcome back. and time now for some final thoughts with our panel. we were just talking about the fact that on dotcom they were explaining the 200-day moving average. i'm saying each of us should write an explainer piece because there is so much misunderstanding about the market right now. what do you think people most misunderstand? >> i think they confuse the economy with the market. and earlier the guy talking about the bubble in treasuries is not the same thing as the national debt. take a breath, go back, look at the fundamentals and you understand where the cycle is or the economy is. you want to understand where valuations, because valuations ultimately are very important. and what you're talk about, kenny, on momentum, how do shorter term dynamics affect. but if you put those three together, that gives you a medium to shorter term ability to navigate some choppy waters. >> and kenny, about these terms, momentum, all the technical trigger, the key levels that we always talk about. >> and that's something that people don't understand. once you break technically, once you start breaking the key levels of support, the momentum

guys, the algorithms kick. in we broke the support, you need to sell x%. the computer triggers. you need to sell x% to protect the portfolio. it's kind of an argument. >> i'm more of a long-term investor so i'm not as into the trading. i'm looking out for the long-term. so for me as we're, again, getting more earnings out, i'm going to be looking for ward guidance. but i'm also going to be looking at capital expenditures, in terms of where we're going and will we see some growth. i'm looking to see if we'll have capital expenditures and given the way that energy has been moving and some of these big capital intensive industries, that's an area of concern for me. >> to remind people, the cap ex cycle, the energy sector is usually the biggest dollar spender on cap ex. >> i think people are going to be surprised with this earnings quarter. i don't think it's going to be nearly as negative you would expect when you look at what has happened in the market the last couple of day. >> and what about intel? i know we have jpm and wells

fargo and i know they're important. but intel the most important one right now. >> i can't talk about specific stocks. it's all about the top line right now. what we do is we marry the short-term with the long-term you. do have the ability at the margin to manage risk and return. but you want to keep your eyes on the long-term. >> i think the top line has been important. i've been pounding the table on that for at least a year, if not longer. it's been important. but i don't think that even right now with what is going on with the fed, the fact that they're probably not going to move rates, i don't think that that's what most people in the market grog to be paying attention to. >> look what has happened over previous quarters when the top line wasn't growing, but earnings kept beating because it was financial engineering. >> it will be important next year. but it's not going to be important this quarter. >> watch janet yellen. >> right. >> just focus on dr. yellin. >> we're going hear from her on friday, i believe. we heard from stanley fischer over the weekend, who is the number two. he the vice chair of the fed and he did indicate there will be more responsive to a deteriorate rate. >> he said that today, everyones

said the same thing. talking about trying to slow the market from falling out of bed. >> and the dove have the numbers on the fomc. >> especially heading into 2015. a couple of other things briefly to watch. the dollar is going to be one. >> right. >> that one, again, sometimes you have to look against the euro or the yen, sometimes just the trade-weighted index, but that's been pushing things around quite a bit. >> ford a couple of weeks ago came out in front of their earnings, here is what we're concerned about. this is why they punished the stock. but less so than they would have punished it had they kept their mouth shut. >> the interesting thing is the stocks that are as sensitive to the dollar moves, the ones that are doing most of their business here in the rust the ones that have fallen out of favor. >> that's why we were thinking the russell would get its mojo back. and it looked until the last half hour like it would. and again, to remind people, there might have been some ebola concerns contributing to the sell-off. does that make you -- how does that make you feel about the fact that we performed so badly at the close? >> i think as the market is a looking for bad information to

be bad information right now. but finger we go back, revenue gain, look at the fundamentals. and for those who are moving their interest rate hike time period up on the fed, the dollar strengthening, what is happening in the corporate sense as you mentioned right now, i don't know that the fed is in a hurry in a low inflationary environment. >> we'll leave it right there. as the clock strikes 5:00. with my thanks to everybody here on closing bell. "fast money" is next. "fast money" starts right now. hive from the market site in new york city's time square, karen finerman and guy adami. we start off with the market alert. stocks selling off into the close today. this is the first time in nearly fife years that the s&p 500 has closed down, at least 1% in three straight session. at one point, it did look like we might get a reverse until the small cap russell index, but it also closed in the red. tech taking a hit with the semiconductors closing lower