volatility not going anywhere. major selloff today. the dow down about 370 at if low. currently down about 202. historic action in the temperature year which we'll get to in a moment. the interday chart, the dow moving over 600 points in just the first 30 minutes of trading. despite the comeback, the dough on track for a worst five day losing streak in over three years. normally we try to focus on tech but it is a day where you can't take your eye off the markets at large. art, good morning. do you want to explain what happened in the first half hour? >> yeah let's put it together. you started in the morning. the futures were weak. you had isis. you had ebola. you had a break up of a big corporate deal. and you had oil continuing to free fall. so that kind of dislodged a lot of things. at 8:30 you got dreadful data.

that compounded things even further. and when we opened, it looked like there was some mandatory selling built in. i don't think the markets were prepared for it. and it kind of overwhelmed what was going on. then oil went back into plus territory. and i think that prompted a couple of people to start buying and that kind of turned the herd. and now you are at an equilibrium somewhere between minus 190 and minus 230. >> let me interrupt and take us to eamon javers in washington. >> the fiscal 2014 budget defense. the treasury saying at this hour the budget deficit fell to $483 billion. that is $197 billion less than the fy 2013 and 165 billion less than what was forecast in

obama's 2015 budget. also as a percentage of gdp the deficit falls to the.8%. the lowest since 2007 and that is the lowest -- less than the average of the percentage over the last 40 years for the budget deficit as a percentage of gdp at 2.8%. i should tell you karl i had a chance to talk to presidential secretary jack lou a few moments ago and asked about the stock melt down this morning and the global economy. when i did ask a press aid stood up and said this is only about the numbers and blocked the secretary from answering that. so the head line from the white house is the fy 2014 budget deficit down. >> also got breaking news that an ordinary day it would be

gigantic. >> big news from time warner on breaking up the cable bundle. hbo chief saying next year the company plans to offer a stand alone hbo service and over the top service that would not require a cable or paid tv subscription. a big deal showing that hbo is trying to take on netflix directly. saying this is the most exciting inflection point for hbo here in the u.s. and overseas. >> we're going to keep our eye on time warner and nets flix. back to art cashin. some argued you took out 1845. that was a balance level for a lot of technicians. fair or not aga. >> again i think the market was ill prepared. i wouldn't be too shocked at it.

i would suggest you want to keep an eye on oil. i think if oil again weakens you are going to see selling pressure on the market. >> that's interesting. because this morning larry fink was on cnbc and talking about oil as basically a gift to the u.s. consumer. and i don't know -- i believe we have this so let's listen quickly to what larry had to say. >> i believe the emerging world will be a much better place with lower petroleum. india will probably increase 1% in gdp if oil prices stay this low. the american consumer, this is app early christmas present. we're e going to see 30 to 40 cents decrease at the pump right into the christmas season. ao i should be good for u.s. retailers. >> retailers haven't faired well and the u.s. consumer when they see the stock market losing 370 points in a single few minutes

they don't feel that great. so do you think that is really going to be the follow on that we see from this. >> i think larry is arguing the conventional wisdom that gasoline prices go down. it is like a small tax cut and you will be able to use it in your spending. but i agree with you. certainly destabilized markets are not reassuring. until we get a handle on some of these things like ebola, people will not feel very secure. and that will be negative. >> art, in kind of parsing out this morning again when you look a global stuff, the ebola and the weak consumer data this morning. which thing impact ted the market how. can you parse it out? >> i would say isis ebola and the break --

points and another hundred points for the weak economic data based on the holy smoke, everything is coming apart. and don't discount oil in free fall. while the long range it might be good and there are hedge funds to people who have commitments to other levels and higher. >> and the bank, i think you could probably call the trend bumpy as best. bank of america would have otherwise been up today. but every question was about its exposure to interest rates and at what point do you tip the equilibrium between marginal rates being good for consumers and really low rates being a threat to business models? >> particularly with the new onerous regulation that is around. >> you can see it yourself. we have several trillion dollars in excess free reserves. traditionally banks would take every penny and try to lend it out and make money. it is not happening yet. the economy is not providing for

it. the consumer doesn't have the appetite for it. >> and do you have any sense of what was the buying that brought the market levels back up. everything was down over 2%. now looks like the indexes are down a little less than one percent. was it hedge funds saying these are cheap? layer robbins was on. what was the buying activity in the market. >> they don't come with fingerprints on them. so i can't tell you exactly who. but i would suggest as i said before that the market was overwhelmed. it was ill prepared and i think people looked and said wait a minute, down 300? i got to go in and nibble on some of that. and it is like a cattle stampede in an old cowboy movie, when the herd turns it turns pretty well. >> you are not using any kind of capitulation in your language when you write this tonight. >> i don't think that is the

right word. i've seen historic whip saw bounces that didn't like capitulation. it looked again like an market that was ill prepared for mandatory selling at the opening they just didn't expect. >> i'm sure we're going to talk again. >> okay. >> not helping was the call on intel. calls shares to underweight. still one of the biggest losers on the dow. with all this action let's goat the alex of jmnp securities. the gross margin guidance was strong. floods pc clients with microprocessors and the idea being they are not going to o follow up with more buying. is that fair. >> jmp agrees with most of that. we made the very same gross marge nls are peaking, growth is

peaking and we're staying on the side lines with this name right now. i intel did miss guidance on gross margin. and as far as trends, yes great in data center but a host of competitors. and we think that is more about the future than what intel is doing today. >> the report is basically they benefitted from 15% unit volume growth. 5% asp declines. is this channel stuffing? is this the last bust of pc sales in what otherwise would superficially seem more positive data? >> i don't think we can go so far as to say it is channel stuffing at this juncture. the products have become modestly more compelling. some is windows 8 upgrade cycle playing out. we'll have to see at the end of the day i think there are a lot of alternatives for consumers now in the android camp.

so if you are going to play the notebook trend, which the unit volumes are healthy. we're recommending investors buy invidia. because they have the jpu attach for the future which is 4 k e t editing and more video. >> do you think there is a risk that given the rosie outlook for q 4, even though people are managing expectations at this point, that we could still be surprised at the end of the year. >> i think either way in fact. intel didn't give us a lot of comfort in the way they built the q 4 forecast. they said normal seasonality and i think we are in anything but normal economic times right so not a lot of confidence in the outlook now. as far as what could go wrong, asp resume in decline right now. more importantly is the company is using cash. signed up for dividends and buy

backs and capital expenses that right now its operating cash flows can't back up. cash balance is falling. if you are looking for a dividend i'd steer you in the direction of apple right now. >> you don't think there is any risk to the dividend, do you alex? >> i think ner not they are not in a good position to try to increase it any time soon. they need to turn the ship around in a many ways. probably the most exacerbating is mobility. they are losing a billion dollars a quarter. they don't van answer. just made a new $2.5 billion in -- a company they --. i think intel is still casting around for an answer in mobility. >> that would be interesting if they made a move on the balance sheet either direction. alex thanks. still keeping our eye on the broader markets. off low but still major declines and approaching the european

close which of course has been a major driver of the market lately. "squawk alley" back in the momentum i have the worst cold with this runny nose. i better take something. dayquill cold and flu doesn't treat your runny nose. seriously? alka-seltzer plus cold and cough fights your worst cold symptoms plus your runny nose. oh, what a relief it is. ghave a nice flight!r bag right here. 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.

a big impact on fed policy if we continue to see not just the market but a data trend also going in the wrong direction.

steve leaseman is back at hq to explain. >> you are right to focus on the data. one question on the mind of the markets and fed observers this morning is is this data deflationary. and i think if you look it essential looks like it is certainly not pointing towards inflation. retail sales down 03. the core sales, unchanged. wholesale prices down 01. business nvnt inventories up.2. >> decline in gas we expected but furniture and a bunch of other stuff. electronics the only one up largely because of the introduction of the new iphones. here is the two year note and i want you to look at this and remember the number. was a it's trading at 0.3. that's over two years. so where does that put us?

well into 2016 when the fed has been raising rates. it seems like the two year has a mind of its own here. fed funds unfutures which is above this this is the contract for 2014 and this is a major reset. and now what's happening kayla as you correctly point this out is the market is rethinking at least today on this data and the deflationary tenor of it what the fed is going to do next year. you can't be at 0.4% with some not betting there is going to be no rate hikes next year. >> steve a lot of people watching that very closely. thank you for breaking that all down for us this morning. steve he'sman back at hq. pacific crest given gopro a sector perform rating. the analyst is brad ericsson.

>> thanks for having me. >> incredible franchise but basically reached its potential at this point. what leads you to believe that. and other opportunities aren't necessarily around the corner. >> we really do believe in kind of the value of the franchise and the momentum of the brand. and with the recent launch of new products i really feel like q 4 sets up to be a really strong quarter but given the valuations at which the hardware business is currently trading coupled with the potential optimism priced in around future monetization opportunities, seems like the market is potentially, you know, very optimistic here at current levels. >> brad, price aside i look at your estimates. you have 985 for this year. 1250 and 1.5 billion for 2015. isn't that kind of sandbaggy? ate they hit it or blow the numbers out of water.

really only 1.5 billion in 2015. >> i think it depends over the next couple quarters as they have broadened the product pf portfolio. so they have gone up as well as down in price. i think again if you are a buyer of the stock into the 70s or even 80s you are probably banking on the fact you some reaction that warrants a hockey stick response to estimates. and the historical sp they have seen with accessories and mount sales is in line at this point and warranted. >> brad, obviously there have been a lot of analysts coming out to weigh in on the fact there might not be much more upside potential given where valuations have come and how rich the stock may look. but this week we got the first taste of the head lane risk. there was a report that a helmet camera was actually more dangerous in one injury than had

the person just been wearing a normal helmet. and i'm wondering do you think there is further head line risk here? >> there certainly could be. we saw the head lines just like everybody else. at this point i think the brand momentum isn't likely to be impacted by a oneoff headline like that. but it is something to be a part of. certainly activist, enthusiast brand type companies like gopro, the brand is extremely important in terms of maintaining momentum particularly in the holiday season. so it is something to be watching going forward. >> looking at gopro at roughly $73 a share and thats a where you say the price should be discounted if you look at 2020 earnings. so spot on least for a day. but we'll have you back to talk about this stock. >> thanks for having me. >> e breaking news on the ebola story. back to mel at hq.

>> the second healthcare worker just diagnosed in dallas. we're being told by the cdc she had taken a flight on monday before she started to feel symptomatic but she flew from cleveland to dallas fort worth an frontier airlines flight 1143 and they are asking all 132 passengers on the flight contact the cdc to be interviewed. she didn't report feeling feverish until the next morning but because of the proximity of having taken the flight they are asking all 142 passengers on board to contact the cdc to be interviewed. back to you. >> we'll keep our eye on the airlines thanks to that annualize. federal health officials ramping up screenings for ebola in major hubs. rehad a chance to talk to mayor rahm emanuel yesterday how the thinks his city and the government are prepared.

>> you know the federal government just announced that there is going to be a number of airports at which o'hare is part of, from a security standpoint. we have a very good public healthy system in place. and we've had a series of discussions to making sure all the agencies and capacities both at the federal, state and city level are integrated and working to make sure that we prevent any incidence here in the city of chicago as we've all witnessed in texas. >> you have confidence in the cdc. >> yeah well, yes i do have a confidence in the cdc. it's a very capable entity. i worked with it as staff and a as mayor and i haved can in the syst -- confidence in the system as well. we got to make sure all aspects are up to snuff. >> let's get a check on the markets. off the lows. still seeing major losses this morning.

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you can see red from the markets today. not good at all even though the dow is off lows. a lot of that coming from concerns of ebola. meg just broke news about that a moment ago. and starting so see not just travel band bus whether or not we restrict travel among the healthcare workers working on these cases.

>> news just coming out from the cdc about this worker who felt feverish yesterday and that she had traveled before she started feeling feverish. they are talking all the precautions here. and asking all on the passengers on that frontier airlines 1143 on october 13th to call the cdc so they can be interviewed and follow-up with questions and they will be actively monitored. but it is important to note that the healthcare worker exhibited no signs or symptoms on the flight according to the crew carl. >> in the meantime the cdc says it regrets some of these protocols have been developed on the fly. america's hospital structure apparently at least right now is not equipped to deal with these patients. is it your sense if there were to be a new confirmed case they would not go to a traditional hospital. >> what the cdc has been saying

is that every hospital needs to be equipped to diagnose. if folks are coming in with a fever, they could go anywhere. so every hospital needs to be asking the questions and need to be thinking ebola. and need to be thinking are you feverish, have you traveled to any of these places in the last 21 days. and now this is so present there should be more confidence they will be asking the questions. but then what happens after that is still being decided. are they going to be treated in the hospitals? will they be regional hospitals designated for such treatments or one of the four hospitals in the u.s. with designate ed biocontainment units. the cdc is saying they regretted what happened in dallas. they are sending another team there and having another team in place to oversee infection control. saying we should have done that sooner. and perhaps we wouldn't be seeing more healthcare workers getting infected. >> airlines are responding somewhat to this news.

jet blue, american, united all in the red. and that is with oil down from highs in june. >> it's usually the opposite. low oil prices are good for airlines and transports but there is a fear. 132 people on this flight. 76 workers that have had some interaction with the patient in dallas that passed away last week. so there is a concern about the scale of this problem and the scope of the potential exposure. and while last week we talked about the fear in the airlines maybe more obliquely, it does appear now that is becoming more tangible at least with this scenario. >> our thanks to meg who i know is going to be all over that story. really quickly one of the more concerning head lines to me was in the times. these cases in spain are going into centers that have been essentially hollowed out by the

cost cutting that they have had to go through. >> scary to read that. >> yeah. >> just one of the many head lines of course that is effecting the markets. marketing we are seeing still down strongly. off the lows of the day. bertha coombs is at the nasdaq. that touched correction territory earlier in the trade be but although bouncing back that was a pretty terrifying point to hit this year. >> a lot of folks have been watching and saying the big caps in particular have been hard hit in some ways as a source of funds. people want to be liquid right now. so they are selling some of those big names. if you take a look at the biggest caps drawing down the nasdaq 100, dragging it down. combined, the top five, microsoft, intel, apple. they are very very mega caps. they are combining for about half the losses in the nasdaq 100 at this hour. but one of the things i thought

was interesting today is some of the areas normally harder hit are relative outperformers on a down day. take a look at the small caps or the chips. intel is down despite beat its earnings. qual com is having a fairly good day. others bucking the trend. and the russell 2,000 in fact at one point today went positive which was very interesting because the russell was what had been leading us down. and here in october is a relative outperformer. not down as badly as the larger cap indices. back to you. >> thanks bertha. >> let's bring in simon hobbs here at post 9. european markets closing moments ago. what's going on? >> i would just really look at

that screen and just take in the magnitude of the falls that you have mad just on this europe session. it is rough, got rougher through the session as a result of what we saw here on wall street. and again we actually have a graphic close now. can you show greece here? down 6%. potentially a major issue. 6% top session. we've traded since september highs, you will see the move now since then is 23%. that is actually not -- it is actually worse. it's about 30% since the beginning of the september. let me show you where we are on the yields in greece. a tenuous political session. the coalition wants to exit the bailout so they can say hey we're okay. but they may not be able to pay the bills so they have been dumping greek bonds. they passed 10% yesterday.

and that is a major headache both for the markets and of course for the politicians as well. now through the session you saw the oil equipment services, which are basically in the nordic region in the main of europe selling off. because a lot of the contracts that they have presumably they are not being fulfilled if the price of oil is so low and the contracts are canceled. the now the other complicated factor is you have those inversion targets in europe falling today notingly shyer as abbvie walks away. whether that dislocate what is the hedge funds in europe are doing or not, i don't know. clearly it was an issue here. i would just point out through the session, the spanish and italian banks moved sharply to the downside. whether that is cause and effect, i have no idea. but they are big losses and don't forget that we have the

asset quality review on all the major banks in the euro zone coming through one week on sunday. back to you. >> simon thank you for that. john, thank you. >> quite a day. >> quite a day. >> and we're not done yet. when we come back, stocks still in the red, off the lows of the morning. we'll get a closer look at the biggest losers when we come back. opportunities aren't always obvious. sometimes they just drop in. 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. goodnight. goodnight. for those kept awake by pain

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markets have been under pressure all morning. a lot driven by economic data we've gotten, signs that m and a is beginning to crumble a bit and also oil prices, which are now back in the red is something to watch. the dow down about 247. s&p, 1849. we got down to 1837 earlier. bob pa is any on the floor with the latest. >> futures were weak going into the opened at that point about 8:35 we were down 18 points. then at the o open we were down 40 points around 9:44 or so. that is just not retail sales. we saw enormous, big, big trades going up in some of the etfs that are most actively traded. there is one. big sloppy trades. not price sensitive. just get out and the volume was enormous in these particular etfs.

this is the s&p 500. another one professional traders use to get in and out of. suddenly 9:44 or so the volume exploded. they turned around, nearly 100% by 10:00 on normal day shares in some etfs and the another is the ibm and the russell 2,000s. as to what turned everything around, obviously some felt they had seen enough selling and were jumping in to buy. and some are pointing out that oil went positive around 9:40 or so. given some of the concerns as oil as a deflationary factor may have been an influence. and a lot of people watching the dollar it. turned around at the time too. retails sales were disappointing but not 369 poibts in the dow disappointing. that's hard to believe.

david faber i believe had a very accurate report on the shire abbvie deal. this was just another problem for them. a $50 million deal falling apart. i was surprised how many traders specifically cited this deal as a factor in the decline of the market. certainly 369 in the dow is not just weak retail sales. back to you. by the way we did two billion shares in the first hour on all the markets. normally we do three quarters of a bill to billion shares. we did twice normal volume in the first hour. >> incredible statistics. one quick comment to your point of m and a and faith in the system. we're talking about a record

year but roughly half the deals haven't closed yet. so there is this concern that anything out there pending now is at risk. we'll keep an eye on that. but bob, thanks for bringing us the latest. shares of alibaba in the green today coming on the heels of an upbeat assessment from ubs yesterday. the bank initiating coverage with a buy rating and a $100 price target. joining us is ubs managing director for equity research eric sheridan. >> good morning. >> you are saying alibaba is not only going to see above industry growth but sustainable above industry growth. why do you think? >> they operate in china where they have 80% market share. we believe china is a duopoly. and the vast market share is captured by two companies.

we think that environment sustains over the next three to five years and more importantly a lot of growth in china. less than 55% of people online have ever bought anything online versus e-commerce. and e-commerce as a percentage of total consumer sales in china is still only high single digits so a long runway for a penetration story free commerce in kmooin china. >> a huge market but not without risks and my favorite part on the reports have the upside scenario of 136 and then the down side of 65 dollars a share. that is quite a big range. what is the risk for one side or the other. >> i think the upside scenario we highlight is obviously faster than expected growth. continued strength in the margins. alibaba is obviously one of the most profitable companies in the globe in terms of the model they

have today. and that would point to the upside obviously. on the downside, macro is one thing we highlighted. the second is corporate governance concerns with alibaba specifically. both the control jack ma and the alibaba partnership have over the listing structure and the share structure. >> eric, compared to a lot of other ipos this year, they have traded in a narrow range. that range getting a little larger now. but what accounts for that. why has it stuck so close to the first day's trade. >> you are looking at a company with a very large market cap. excess of $200 billion market. so to be able to expect an enormous ipo pop with smaller ipos for something that large when there was a large amount of stocking with sold into the market is unlikely. so this is a story that evolves over multiples of years.

how they come out of the gatd with their first, second and third quarter of operating performance as a public company is going to continue to o compound the impact to the upside for this stock going forward. >> we've got an trickle of information how alibaba might be entering a u.s. market going forward with first costco. opening a t mall site, using t mall distribution to get entry into china and also opening up payment system to u.s. users as well. or to rather chinese users who want to buy on u.s. sites. do you think we are beginning to see the first of alibaba's ambitions in the u.s. market. >> one thing we focused on this is a company clearly with global ambitions. they would like to be a global e-commerce power house. i think other the next couple years they are going to look at a number of means. one is building out the websites country by country. partnering with offline retailers.

billing out a third party seller network. buying properties to expand. but alibaba clearly has set itself up to be a global e-commerce leader over the next five plus years. >> we appreciate you joining us this morning. >> thanks for having me on. >> eric sheridan of ubs. >> mean while back to the markets. the dow down triple digits, 241 right now. steve misoka with web bush equity management. i'm just looking at the notice you gave us and you basically think that the selling is over done. but how can you disagree with the mosaic that the market is working with this morning. >> i think the economy is softening. i think it's been soft for a long time. we haven't seen great gdp growth in months. two percent in a recovery, we should be seeing four percent. the employment number, realistically outside of the head lines haven't been good. the one thing that's been really

good is corporate profitability. and if you pace stock prices on things. i bet the corporate profitability is a good thing the hang your hat on. the numbers have looked pretty good. wells fargo, citi bank. intel. a lot of this is psychology and a lot of this is the market needing to correct after many, many months of just going straight up. but it is a needed correction. but i don't think it is anything more than that. it is a correction. we're down 8% off the top in the s&p. my guess is we're about done with it. >> that doesn't make into account at all the notion of a global outbreak of a virus we don't understand and for which we have no vaccine and no timetable to get one. there are extraneous factors. >> ebola is a scary thing. it is out of control in an area of the world that simply doesn't have the resources that the western world has. you know, the early stories out of west africa where they didn't

even have the basic rubber gloves to treat the patients with. we are going to track this very closely. we've got a lot of of organized efforts i think in the western world which will keep ebola from becoming a huge problem. it is very scary, i agree. but i just don't see it ultimately having a huge impact on the stock market. >> bank of america, great earnings, down 5%. is there a point that you think the blood letting ends? >> very soon here. i think that we are -- psychology, obviously this morning reached a nader. and i think we're very close so right now a lot of cheap stocks on my radar screen and now the great time to put money to work. >> a lot who hope you are right. steve, thanks for joining us. >> over to the cme and rick santelli. >> it is a crazy day. but crazy is actually kind of orderly in certain ways. look at these charts really quick. the interday two, the interday

five, ten and 30. i said on the air i think we wrote a mini chapter on the capitulation in the fixed income. my comment regarding that word is still out for review in the equity markets. look at the charts. the weak retail sales number. and here is rates at the time when i was talking to beck questi questiky quick. we saw a 30 basis drop in fives. unbelievable. if you think in percentages it is mind boggling. from 216 to 185 back to 204 and a ten. and 293 and 267 in the 230 back to 282. so these a kpachcapitulation le bus great trading levels also. the pack man effect. you clear a new zone for a range we haven't seen in a while, what

that is going to tell you is we are going to most likely come back. and i'll pick the five year because i still think it is the most important part. the that most likely the 110 in yield out to 125 is the area we're going to have to come back and fill in. look for more wood to come in some of these zones and treasuries. and with regard to what is going on in equities, all i can tell you is we put a couple of things to bed. there's no alternative. i think we put that to bed but we also put something else to bed. how many times have you heard, fed fund futures, march 20u 15. that is when the fed is going to tighten and how many times have i said it is just a market. it's based on the arbitrage, market efficiency and lines one t the other spreads. so now we shoot to 2016. there's the flaw. don't look at the market as views into the future. look at them what they are. trying to handicap the unknown. and it is unknown to everybody. from bernanke to gellen to gund

la -- yellen to gundlach. it's unnotebook known to everyb. my final two cents, remember steven chu. he was the energy secretary from 2009 to 2013. one of the famous lines he said was somehow we have to figure how to boost the price of gasoline to the levels in europe. like 8 to $10. that's how the current administration is bringing together this wonderful drop in gas. were they responsible? it is going the wrong way for their taste. back to you. >> when we come back more in the markets with the major averages all down over 1%. and j.b. pritzker is here with us when squauk al continueses. ♪

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two hours into today's trade and already wild moves. a great lineup of guests. elherian. rick rydeiyder ryder.

originally we were going to talk about chicago and the ability to lure in start-ups and financing and what silicon valley's done and austin and new york have done. today it's hard to get away from the conversation about the broader market. is that beginning to impact how start-ups are lining up financing and the world view of v.cs. >> i don't think that seeped down into early stage investing. the investors that have come from all over the country here to the chicago venture summit are here to see great entrepreneurs. and there might be some pricing change that occurs in the market but, you know, only a few days of selloff hadn't yet changed the mood. >> volatility though j.b. is of course the buzz word in all our conversations not just today but in recent weeks and i'm just wondering from a venture capital

standpoint, is there a point at which volatility means that your portfolio can no longer thrive in the markets? whether it's consumer spending or other investments getting effects. at what point would that actually effect you? >> well obviously to the extent that the ipo market is significantly effected by this volatility, you know, exits are effected and therefore prices in general are effected. because venture capital is all about the exits and we think about that in terms of timing and the capability of the market to take on as many ipos as it has over the last year or two is important for that. so, you know, in one sense i think this volatility is going to have a negative impact. in another sense i do think there's been let's say pricing to perfection in some deals around the country. so perhaps this will ease off a bit and let venture capitalists get in. >> j.b. what are the main

tenants you are seeing in the ipo market now. you mentioned -- priced to perfection. we have seen deals do well, but what are you seeing in terms of what deals can still happen amid a backdrop of volatility? >> well i don't want to be too broad in my answer but i must say it is the disruptive technology that is really got everybody's eye. when you can spot that, those are the ipos that will happen. those are the deals that will happen. in these kind of frothy and now volatile markets, i think those deals that don't have that disruptive quality to them look like just another deal. so we'll have to see what the impact is here. but to me when i look around the chicago venture summit and talk to investors here from around the country, there is still a

ton of interest in digital technology. there are still markets that have been barely affected by the internet b 2 b revolution we're all familiar with in silicon valley. but think about the industrial midwest and how little of that has seeped into most manufacturing. so the opportunities are there for disruption and change in markets and we've seen a couple of those great examples here presenting at the chicago venture summit. >> and chicago has done a great job on this. finally j.b., quickly you mentioned exits. we have 50 companies with the billion plus estimations. is an ipo no longer the metric by which we judge success? >> partly it depends on the perspective you are coming from. in part of my -- one hat that i wear in the world is as

long-term capital. so i'm a venture capitalist which tends to be relatively short-term, you know, five year kind of investors. but on another side of my world we are long-term investors. so depends on your perspective. from my perspective, i will say that the ipo market is not the only exit. there are lots of strategic buyers out there with a lot of cash and i think they are looking for deals. >> j.b., appreciate your time. please come back as much as you can. j.b. pritzker from chicago. 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

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norfolk southern. one line, infinite possibilities. ebola continuing to be a linger head lines that troubles the markets. dow continuing losses down 249 points. but if you missed the last hour or so the news is that the second healthcare worker who's tested positive in dallas flew on frontier airlines, flight 1143, cleveland to dallas fort worth on october 13th. the cleveland to dallas, landed about 8:00 p.m. central time. the cdc is asking anyone on the

flight to call the cdc at 1-800-cdc-info. >> the ohio department of health is also investigating as this becomes a public investigation. >> the halftime report starts now. >> thanks so much. welcome to the halftime show. stephanie link. john and pete najarian are co-founders of option monster. steve franco on the flor of the new york city stock exchange today. and steve leaseman is with us onset. we begin with the markets and stocks showing more volatility than we've seen in years. big selling at the open. bit of a bounce though things remain