welcome to "worldwide exchange." i'm wilfred frost. >> and i'm seema mody. >> european stock markets give up early gains after a volatile session stateside sees the dow posting its biggest intra day drop in three years. >> the yield clings after falling to the lowest level since may 2013. brent and wti crude continue their slide. shire shares plunge for a second day at abbvie pulls the plug on its takeover.

meanwhile, roach is still on the hunt for a targeted acquisition. sales of nestle and car four tradi carrefour trading in the red. good morning and welcome. the stoxx 600 was up as much as 1% about an hour or so ago ppts now down just below flat, 0.13%. but even a decline of 0.13% does not tell the full story. the uk and germany were both down nearly 3%. frabs, italy, spain down nearly 4% and greece was down 7%. 7% in one day. what on earth is going on? unsurprisingly, we see a bit of a bounceback today across the board relative to yesterday.

the other european bourses are struggling particularly over the last hour, particularly portugal down 1.3%. portugal and greece are now down 30% from their highs earlier this year. that's significant correction territory and most of the other major bourses in europe are now down 10% from their highs earlier this year. let's look at bonds. we also have volatility in the bond markets yesterday. in particular, let's check on the u.s. ten-year. it hit 1.8% before settling just above 2%. this is meant to be a safe, secure asset, seeing huge volatility through trading. we've seen yield compression across the board. germany is now 0.75%. look at the uk, it's now below 2%. it touched 2.6%. massive yield compression there. there's country-specific examples going in the opposite

direction. greece now above 8%. it was below 6% a few days ago. massive moves in greece. that's mainly a political fear. will there be early elections, despite winning a vote of confidence last friday and will greece exit its imf loans early? let's look at forex. the u.s. dollar gave up some ground early today, but it's now strengthened in the last hour or so. the competing worries, it has stronger growth than elsewhere. should it be strengthening? but lower bond yields make it less attractive on interest rate differentials. anyway, as we look at things now, it is in stronger territory for the day. the euro, 1.2795 against the dollar, against the yen, flat, 105.9. aussie/dollar, giving up quite a lot of ground today. 0.8757. cable is at 1.5991. that's basically flat. let's hear what's happening in markets in asia. sri jegarajah is in singapore

for us. good morning, sri. >> good morning, wilfred. the contagion that we got from the european markets and stateside with the exception of a few pockets of brazilians, the aussie, asx 200 in positive territory, up by 0.2%. and the jakarta benchmark sticking its head above the powerful. but again, only just. take a look at some of these losses. the lending data was better than expected, but the losses at the close. down by 0.7%. 4 1/2 month lows for the nikkei. this correlation with the markets is still very, very tight. we have seen safe haven flows go into the japanese yen appreciation in the currency. that labels the exporters and by implication the broader index, as well, well below 15,000. wilfred, seema, i think it's going to come down to the data, is going to come to the down to

the fed speak, as well, culminating with janet yellen on friday. this is going to be interesting. is she going to try to draw a line under this volatility and is she going to reassert her credentials? if she does, is that going to be the salvation for these markets? >> absolutely. on that note, take a look at what happened on wall street. it was a roller coaster ride on wall street, a sharp sell-off in equities. traders saying it was a combination of factors, slowing growth in asia and europe. plus, that disappointing retail sales numbers coming into question the strength of the u.s. economy. the dow at its lowest level since early 2014. the dow, in fact, ending the day down around 173 points. but keep in mind, incident was down as much as 460 points in mid day, so a lot of volatility

just in the dow jones industrials. stronger dollar and global growth also sent oil prices down. once again, keep in mind, the price of crude now down about 24% just this year. but if you really want to take a look at where we saw the action, that is in the vix. the volatility and fierce of a more pronounced correction since the vix up higher. it was above 30 at one point indicating that there is a lot of fear in this market. wilfred. >> thanks, seema. joining us now, james butler. james, huge volatility, monetary policy, which for you was the most profitable? >> probably global growth. if you look at the retail sales figures in the united states, well below expectations. but in these sort of times, you really have to question, step back and stop and look at the fundamentals and do they really

justify this sell off? i think the u.s. down from peak now is around 7% in world equities are down 9%. so think really want it. we've looking at quite a few indicators here and there seems to be a manufacturing slowdown. if you look at pmi. but that's quite limited to europe, primary my. and a lot of services pmi figures are still quite low. there are positives to look at, particularly if you look at retail sales. the average consumer household spends around $3,000 a year in gasoline. gasoline has fallen, what, 11%? that's $300 for those $220 boom to that wallet. so actually there could be some winners, particularly consumerism here. >> and, james, asiding global growth worries, there seems to be a massive shift in confidence. how much investor sentiment is impacted going forward? >> yeah.

i specifically at some measure some markets will capitulate. late trade yesterday on the s&p, where we quite divergent sector and that suggests maybe there's some profit taking going on there. >> james, the upcoming slowdown in europe will be a shallow one and you remain positive on european equities. do you maintain that or did yesterday's sell-off worry you a little bit? >> that's quite hard. in europe, particularly this earnings season, it's a fight between the weaker euro, which is still at 26% over the quarter, versus slightly slower global growth. and you have to balance the two. balance became weaker euro is going to benefit europe. and it's quite possible we'll see another. we saw the first quarter last quarter of growth for almost three years in earnings. and we believe this next quarter we'll see continued growth. >> and what about greece and portugal, now trading in bear market territory, now down more than 20% from their recent

highs. is that concerning? >> a lot of that was due to banks and the statements, the european banking authority made statements. i think it highlights just how sensitive investors are to the upcoming stress test. and so investors are very volatile. >> james, also, we look at the greek bond yield particularly, i think it was perhaps more focused despite the bank's announcement, more focused on political concerns. but one of overconfidence as recently as last friday. is that creating a pocket of opportunity in greece at the moment? >> it's not an area that we're investing in. but if you look genuinely what's happening, it seems to be a bit of a consensus trade. and i think a lot of people have jumped on that bandwagon. if you look at irish bonds, they were trading at one point below u.s. ten-year. is that really warpted? so i think there's a bit of a correction going on here in consensus trade. >> james, thanks very much.

more from james in a few minutes' time. >> make sure to head to our website for all the latest market action. we want to hear from you, worldwide@cnbc.com. coming up on the show, president obama cancels a campaign trip to deal with the ebola crisis as it emerges that a u.s. health care worker was let on a plane despite having a live fever. we head live to washington for the latest. >> and what's on the script for netflix? we find out how they plan to restore subscriber growth as it sees shares plummet in after-hours trade. and after a roller coaster session on wall street, what should investors do now and would an official correction be a good thing? more market coverage coming up next. from fashion retailers to healthcare providers, jewelers to sporting good stores, we provide financing solutions

for all sorts of businesses. banking. loyalty. analytics. synchrony financial. bankinengage with us. ytics.

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welcome back. nest wli is off 2.9%. they're looking at currency head winds for the miss. shares in carrefour are flat after results showing weak consumer sentiment in europe,

weighing on third quarter like-for-like sales growth. stephane is in paris with more on that. >> good morning, wilfred. in europe, the numbers were really disdisappointing. it questions the strategy put in place of a bounce one year ago. in spaen, for instance, carrefour posted almost 1.2% contraction in the third quarter. it comes after an increase in the quarter. and italy spain dropped by almost 5% in the third quarter. it comes after the second quarter, but it was the first good performance in three years. this is having a negative impact on carrefour. not only the company claims that third quarter sales in france also profit from the bad weather conditions in july and august and also it suffers from a cyclical decrease in fruit and

vegetable price. in france, which is really important, because carrefour makes more than 50% of its revenue out of perhaps. the sales from the hyper market, a key metrics decline by 0.2% in the third quarter, it comes after gradual decrease over the last 12 months for carrefour. all in all, the numbers are not so bad because they are in line with expectations. >> stephane, diaggio, 0.6% in the green. it's on third quarter sales for 1.5% in weakness in emerging markets. the slump was inline with expectations and the stock has now given up some of its earlier gains. roach, up 0.8%. the pharmaceutical is trading higher after beating second quarter expectations.

the cfo told cnbc earlier that the group is not making any changes to its m&a strategy. >> the screening the market were very targeted opportunities, m&a opportunities where we can build our existing franchises be it in technologies or products. we are not into mega mergers. we have a very targeted approach. >> shire nears double digit losses on the ftse after abbvie's board recommends voting against the $54 billion takeover of the uk company. the drugmaker's board cites recent government changes and infraction deals. abb have i e's ceo says the

breath of the new scope of rules add a level of uncertainty for the deal. it's a $1 million break-up foo fee. if the deal collapses, that's one of the reasons shire shares are trading down by around 8%. shares are down about 30% after the past one month. >> and on the shire story, out about 20 minutes ago, the board of shire has said that they noted the announcement by abbvie, the board voted to recommend withdrawing its and a further announcement will be made in due course. >> bob pisani wrote in his blog that the whole pushback on tax inversions and the hard tax deals is not much of a side show. there's a fear that these deals will not go through because there's a lot of huj funds that have invested in these deals and now there's a fear these deals might not go through, that's a concern and one of the reasons

we did see that sell-off yesterday. >> it's a hell of a long way to go. i wonder whether this is a slight reaction. but it's one to continue to watch. >> important to note that even though we have seen a surge in the number of mergers and acquisitions this year, only half have been closed. after a roller coaster session stateside, how should you be positioning yourself in these markets? earlier our colleagues on "squawk box" asked dennis gartman for his thoughts. >> you stay in cash and you stay in short-term bonds and you don't move out. this is a very difficult period of time. and i'm afraid -- i don't like to think about it, but i'm afraid that this might be the very jennings of a bear market that could last for some period of time. i think it's going to be more than a mere 7% to 10% correction. i don't like to be that way. as an old friend of mine once said, you have to remember in

the business of trading, bears don't eat. i.e., bulls in the market enjoy the upside. only bulls get paid over time. >> mr. gartman saying you stay in cash, you stay in bonds. we want to hear your thoughts on the market moves. what do you think is behind the sell-off and how are you protecting yourself on the volatility? worldwide@cnbc.com, @cnbcwex. our personal handles are on the bottom of the screen now. we'll discuss your view and various expert views throughout the show. james is still with us. he's a global equity strategist at coup. james, equity markets seeing volatility. the other area we're seeing a significant sell-off is the oil price. you said that created some opportunity for consumers, but what did it mean for energy stocks particularly? >> it feels quite shocking at 23% in oil prices. but actually, if you look throughout history, we had a very similar fall in 2002, 2003,

2004. i think, what, 2005, '6, 2011 and 2012. very similar falls. and so at 23%, there's lots of geopolitics here and lots of market increasing supply. but from a historical perspective, it is not unusual. and naturally in the energy sector, you see sell-offs. we have been long energy sector and it has hurt us. so when you see these falls, if you look historically what happens to the energy sector, it tends to rebound six months after and outperform against the market. if you look at the fundamentals in the energy sector, they are restructuring their businesses, becoming leaner, improving cap yex discipline and we see great dividend play, too. >> in 2008, the price of oil fell from 144 to 33. does that mean oil prices could potentially move even further south from here?

>> if you look at the reason why, that was a mega bear market and real problems with economic growth. we've just come off a massive bing. are we in that same position now? we don't believe we are. if you look in the united states, economically, it seems to be on much sounder footing. so it's unlikely. >> what do you think is weighing on price more, stronger dollar or the oversupply of oil in the middle east and u.s.? >> i think it's probably a mixture of -- actually, historically there are examples where a strengthening dollar oil can do quite well. but it's probably a mixture of weak sentiment, strong dollar. >> we talked about all the possible reasons for why market volatility picked up, why equity markets are down. but one hasn't been mentioned much over the last month is that quantitative easing is ending this much. decisions about rate rising aside, how big of an impact for the markets? >> there aren't any historical examples to take from.

but what you can look at is what's happened when rates in the united states have been low for a long period of time and start rising, which is effectively -- you know, tending of qe is a form of tightening. what we see is roughly example since the 1950s of this low rate environment. and markets tend to have a bit of a bobble because you're moving from a stimulus-led economy to an economy that has to be more self-sustaining. and markets tend to question is the growth sustainable? this might be what we're experiencing right now. >> james, thank you very much for joining us, james buckfeld, global equity strategist. now, hedge funds could be on path for their worst year since 2011 as they've been forced to cut losses. in september, the industry lost 75%.

other betts from u.s. lending giants fannie mae and freddie mak have unraveled recently. >> the second dow patient identified with ebola has been identified as amber wilson. she's been transferred to atlanta. she was moved from cleveland to dallas on monday, the day before testing positive. reports say she told the cnbc her temperature was 99.5 degrees, below the agency's threshold so she wasn't told she could not fly. but the cdc says the chance other passengers was affected were minimal, but reports say the crew has been put on three weeks leave. ordering the government to respond more aggressively with a cdc s.w.a.t. team dispatched to

any place there is a case. the chances of an outbreak in the u.s. is very low. >> these protocols work. we know that because they've been used for deckads now in ebola cases around the world, including the cases that were treated in emory and in nebraska. so if they're done properly, they work. >> congress is holding a hearing today on the u.s. response to ebola. cdc director tom freed sxn other health officials set to testify before the house oversight committee at noon eastern time. house speaker john boehner says president obama should consider a temporary ban on travel from the u.s. to west africa. the italian cabinet has approved the country's 2015 budget, ignoring concerns that rome is not committed to raiping in debt. according to the italian prime minister, ma tateo renzi, the budget lowers by 18 billion euros. the biggest tax cut in the

history of the remember. the plan will be send to the european commission. although there is concern brussels may reject both the italian and french budgets. western president vladimir putin will join european leaders when they meet asian counterparts at the asian/europe summit. claudia is in milan with the latest. >> we are awaiting the heads of state. they are expected to arrive any minute here at thi asia/european meeting which is held every other year. this is the 10th meeting. now, what is expected to come here of course is -- trade how to improve security and growth promote sustainable growth. those are the objectives. but, of course, on the sidelines, the dramatic issues facing russia and ukraine will, of course, take center stage. as for the economic assets, remember, 44% of european imports go to asia.

30% of european exports -- of imports come from asia. so very significant numbers. the biggest numbers of these trade ongoings are for china and russia. there will be bilateral meetings regarding the economic aspects. coming to italy, as well, where deals were close for 8 billion euros for sectors like energy as well as engineering. so did bilateral meetings will discuss the dramatic issues that we were saying. vladimir putin will be the most important guest here in the next two days. there are hopes that something can happen in terms of moving forward in reopening the dialogue between poroshenko and putin and that may be done by the likes of cam ropp, hollande, merkel and renzi. back to you. >> thanks very much, claudia, for that. now we're going to bring you some live shots.

in court for a fourth day for sentencing, oscar pistorius is in court. those are live pictures and we'll bring you more as and when we get it. still to come on the show, is netflix a house of cards really to tumble? we find out what's behind the stock's massive after hours move up after this break.

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the you row zoe is just above 3% after falling to the lowest level since may 2013 while brent and wti continue their slide. shire shares plunge for a second day as abbvie pulls the plug on its takeover. meanwhile, roach che is still oe

hunt for targeted acquisitions. let's take a look at european markets. we started the day in the green, but since then, france and italy showing a little bit of red right now as the italian markets down about 1% on the day. france down 0.3%. germany holding on to a gain of 0.2% p. and italy showing a little bit of green up about 0.2%. keeping in mind, taking a step back, the euro stocks down about 10% from june highs. greece and portugal in bear market territory all down about 20%s from recent highs. >> the u.s.-ten year treasury as we just said in headlines dipped below 2%. it hit 1.8 during trade from 2.2% the previous day. so moving around a lot.

the u.s. ten-year treasury yields, the same thing that we're seeing in germany and the uk. the ten-year german yield is 0.75%. the ten-year uk yield is below 2%. top sit direction mode for greece, now 8.3%. it was below 7% two days ago. yesterday it moved 80 basis points. today it's moved about another 50 basis points. investors very concerned about the greek banks and about the outlook for the greek government. will they face early elections if they continue to push from the imf bailout early? >> and after the luxury shoemaker jimmy chu expected to go public this week, we know it narrowed its range earlier this week. just want to get you a headline here. reuters quoting sources at the lower end of its range. its initial price was 140 to

160. >> netflix reporting disappointed third quarter earnings. julia boorstin has this report. >> netflix shares dropping dramatically after hours. after the video streaming service reported new subscribers than analysts projected and that i was forecast. netflix says it is not the result of more competition from the likes of amazon or hulu, but rather the result of its price increase back in the second quarter. the company's revenues right in line with specations at $4.09 billion and earnings per share of 96 cents beat analyst expectations by 3%.

>> this is a stock that has been up on the year. the company wasn't able to deliver this time around, but it has seen growth of the last couple of months. the films, now they face massive competition. particularly in europe first. that is what the stock price after hours is moving off the back of. it will be interesting to see if they can continue with their first move advantage. >> absolutely. another company ebay gets set to

spin off paypal. shares fell about 1% in after hours trade will be in focus. we got that news that ebay is spinning off paypal. that's been the main reason they've been able to post better revenue growth after the quarter. what happens to ebay once paypal spins off? >> paypal was seen as the darling of ebay. as we were just saying with net flex, it's a growing segment overall, but facing competition. lots of people want to get into it. social media stocks and i think people are concerned as to how ebay can defend its market position without paypal moving forward. another big tech stock, of course, is apple. it's holding an event at its headquarters today at 1:00 p.m. eastern time where it's expected to unveil new ipads and max. these images of an ipad air two and mini 3 are in apple's guide to ios 8 and they were spotted

by a blog site on wednesday. it shows both tablets will now include the touch id fingerprint sensor. apple pay is expected to get some stage time today. apple shares trading up a little bit, almost 1% in frank first today and up around 7.5% over the last three months. nestle is trading lower after sales growth slowed in the first nine months of the year. the food and beverage group is blaming decelerating in asia. however, nestle's ceo says the company is in track to meet its full year guidance. joining us knob but john cox. thanks for joining us, john. i want to ask you, how much did weakness in emerging markets weigh on nestle's earnings weigh on earnings this time around? >> you can back out what happened in the first half of

the year. emerging markets seem to decelerate from 9% growth to close to 11% in q2. and i think probably the most shocked thing is that overall organic sales growth from the group is probably close to the 4% the market was looking closer to 5%. >> and, jean, even though outlook was weak, there was still growth there. how do they management to get that number into positive territory?

>> it's no surprise that you can properly grow your business around 4% or 5% with those emerging markets growing at 10%. so i think emerging markets are the key things to keep in mind. that is still the main growth driver. it's not a bad figure compared to some of the other businesses there. but i think the bigger concern, the market, the stock has been priced with perfection for some time. that is why the stock is coming off. if you see a weakness today, you may see a slight recovery tomorrow. but overall, clearly unsettled investors.

they are stilt going for that 5% target for the year. i think it will be close, but i don't think they'll get there. i want to bring smu flashes on greece. the ecb has said it will move to boost liquidity offer to greek banks. 80 basis points yesterday, around about 60 basis points today. significant yield gap difference as you look across europe there. 8.376% on the ten-year greek yields. >> and if there wasn't enough to worry about around the world, hurricane gonzales, tropical storm, is seen over the caribbean ocean gaining strength. a category had right now. conditions on bermuda are

expected to deteriorate tonight. it is, of course, gaining strength here and that is what we wanted to bring your attention to at this moment. we've been asking our guests what they think of the recent moves. >> for those investors who can live with the volatility, it's a great time to get back into the market. >> in the united states, it's been a long time since we have had the correction. we had medial valuations. our view is that while this correction is normal and to be expected, we are not concerned about anything unraveling in terms of the potential crash at bear market of 20%. >> over the last two years, the markets have essentially risen in a pretty smooth, straight line. really, ever since mario draghi

said, you know, whatever it takes. we've had no correction for the last 2 and a quarter years. so i think we should expect this correction. i think fundamentally we're still in the bull market. we're in the mature end of the bull market, but it hasn't finished yesterday. >> a situation that ultimately could be supported. there is good news for stock but has yet to be discounted.

a second ebola case occur in the u.s. her temperature was 9957 degrees, below the agency threshold. no one told her she could not fly. president obama met with the cabinet and u.s. health officials wednesday at the white house. he's ordered the government to monitor and respond more aggressively to ebola threats. straight out to nbc's tracie potts live in washington with the latest. tracie. >> seema, we are monitoring things from washington here

today. additional screening, where they'll be taking pictures of people coming in from those affected west african nations. meantime, there is a lot of concern here on capitol hill about whether the cdc is doing enough. there is a hearing happening here today. we'll hear from the head of the cdc. he's facing some tough questions. also, the chief medical officer for that texas hospital. we've been going through his advanced testimony. he will admit that mistakes were made and they need a more proactive approach. but telling employees about ebola is not the same as training them to deal with it. so that is happening here today. also, the airlines are notifying passengers who were on that plane with amber vincent who you just mentioned, 132 people. that plane has been scrubbed repeatedly and taken out of service. seema. and house speaker john boehner says president obama should consider a temporary ban on travel from west africa to the u.s. what is the likelihood of that happening? >> the president has said that that is not going to help the situation because a ban would

mean that we can't send our people over to help contain the virus overseas. >> watching for the latest, tracie potts, thanks so much for your time. and on this subject joining us now is anna rosenburg, sub-saharan african analyst. we've been very focused in the news on what's happening in europe and the u.s. in terms of spread. what is the latest on the ground in africa? >> obviously, we're seeing a very bad economic impact on the three worst affected countries in the region. that's sierra leone, guinea and liberia. for all three countries, gdp growth has been revised down considerably. for liberia, it's down 8% from previously 11%. for sierra leone, it's going down from 6% to about 2.5%. and for guinea to from about 2.4% from 5%, as well. so it has impacted the three worst affected countries in the region. but it's important to note here that the overall economic contribution to west africa is very small.

we have 16 countries within west africa. and the three worst affected cups only make up 2% of the overall gdp, up all 16 markets, which is about 7$700 billion u.. >> and in terms of the disease spread, is that -- >> it has not further spread into neighboring countries so far. niger nigeria, which had a few cases, has been very effective in containing the disease now. i think on monday, they're going to officially declare to be ebola free. sin gal has had no deaths as well as ivory coast which borders directly with liberia. >> and what's the threat of ebola and the ivory coast on its cocoa production? we have seen a significant drop in the price of cocoa.

>> we have sign a problem in that forecasters weren't able to travel to the region. we expect that to impact the ivory coast. >> if we look to take a step back from ebola. >> general and look at west africa as a case, are you still pretty positive on that? >> absolutely. it's spec'd to catch up with the lights of stickersky in a few years in terms of sheerside size. the presence on the ground and looking at africa, nigeria is a top spot market still. that hasn't changed. and liquidity aside, what about corporate governments? there's another big fear for potential investors. >> that's an issue, not just in sub-saharan africa and emerging markets. multi nationals are getting better in avoiding that risk. this was being tackled and

addressed in the region and are getting better, as well. as local governments, local business also have an interest in trying to reduce corruption risk. can that off set what we're seeing in africa right now? >> absolutely. both free markets are not of the mind of multi nationals right now. we are seen kenya and angola in the sub-saharan africa. overall, there is a lot of interest. >> but in terms of the threat for ebola, what about 2015, as well. >> lower gdp forecast only for the three small affected countries, not for west africa if there is no further spillover. >> we'll leave it there, anna rosenberg. recruit, the japanese

advertising and human resources company took its stock public on the tokyo stock exchange today. we have the story live from tokyo. >> thank you, wilfred. the ipo is japan's biggest since 199 8. the stock performance well despite a closing market and outstripping its ipo price by 5%. recruit ratio is 29 far higher than the average of 15 for all first section stocks. but market participants say the stock is not overvalued and that the company has strong growth potential. recruit has smoothly transitioned from paper base to digital media over to years. advertising fees are its main revenue source and the company provides services geared towards specific life events, such as changing jobs, buying homes or getting married. recruit doesn't plan to stop

there. it hopes to grow into a business along the lines of google. recruit plans to use the money raised through diversing to finance overseas m&a. after japan's ipo market, it seems to be heeding up. an estimated 70 to 80 companies are prompted to go public in 2014. back to you, wilfred. >> i'll take it there. thank you so much for your time. in other news, we're keeping an eye on brazil, brazil's presidential election is heading towards a photo finish on october 26th, that according to the latest poles. the leader will go head to head. two new polls out today indicate nevez has 45% of voter support compared to 43%. there is a margin of 2 percentage points in both polls.

let's have an update on markets. it's an important couple of days trading. it's been so volatile. pretty mixed today in europe so far. the stoxx 600 is just in positive territory. it was up about a percent at the start of play. it then moved down and now it's up about 0.2%. let's look across the board in european markets. this split up and down doesn't tell the story yet. the uk in germany was up 3%. italy, spain, off in and around 4%. all the bourses in general are pretty much down around 10% from their highs. so a big correction in europe over the last few weeks. let's look at bonds. the volatility hasn't just been in equities.

yesterday it touched 2.8% before settling at 2.on 06%. significant volatility in what is meant to be a safe haven asset. that yield compression has been seen across the board. the ten-year german yield is now 0.747%. incredibly low yields there. that's been similar across olympic all of europe. on the 18th of september, as recently as then, was up 2.6%. it's now 2.0%. so seen as a relative safe haven trade across europe. significant yield come expression pretty much on all european bonds apart from greece, which has hit 8.56%. only two days ago, it was below 77% significant yield rises because of fears of possible early elections, possible leaving the imf bailout early and fears over the banks.

let's move on and have a look at forex. the u.s. dollar which has just flirted with giving up some of its recent gains over the last ten days has bounced back so far today. the euro giving up about 0.3%, 12798. the yen is at 105.96. that's basically flat today. the aussie/dollar has given up a lot, 0.873. cable is basically flat so far today, 1.6 exactly. let's have a little bit of a focus on individual stocks, as well. nestle shares are falling as sales growth for the swiss multi national slowed in the first nine months of the year coming in below estimates of 4.5%. the food and beverage group is planning decelerating growth in asia. carrefour are trading just higher today up 0.86%. this after results show weak consumer sentiment in southern europe weighing on the retailer's third quarter

like-for-like sales growth. but, in fact, expectations have been worse than that. so even though there was weakness in europe, the shares up slightly today. diageo is up 1%. the drinksmaker saw overall third quarter sales from 1.1 to 1.5% in emerging markets. the slump was inline with analyst expect ages and the stock has given up -- well, it gave up some of its earlier gains. it's been volatility tile in and around the 0.5% to 1% in the green. roach is up about 1%. the swiss pharmaceutical is trading higher as it beat thrd quarter sales specations. the ceo told cnbc earlier that the group is not making any changes to its m&a strategy. >> the screening the market for very targeted opportunities, m&a opportunities where we can build our existing franchises, be it in diagnostics or in pharma, be it in technologies or products.

we are very targeted approach. >> shire is looking at almost a double digit loss after abbvie's board recommends against the $534 billion takeover of the company. they quote changes in the rules to curb so-called tax inversion deals. abbvie would have moved its headquarters to ireland. abbvie says the breath and scope of the new rules add a, quote, unacceptable certain level of uncertainty to the deal. abbvie may owe shire a $1.6 billion break-up fee if the deal ultimately collapses. on that note, let's broaden it up to the u.s. markets. it was a big day on wall street with the dow seeing its bill biggest move to the downside since 20111.

at one point, the dow was down as much as 460 points. nonetheless, a big day auto wall street and futures are indicating a lower open in today's trade. and we want to hear your thoughts on the market moves yesterday and today. man has tweeted in to say it's a good thing, don't put a damper on it. trumpet this confidence. seymour tweets slowing global growth is the only real issue. changes in monetary policy and ebola are making it more volume title. get in touch with us, @cnbcwex or e-mail us, worldwide@cnbc.com. and coming up, we'll be talking more about the markets and what is moving them. stay with us on "worldwide exchange."

a big day for wall street. welcome to "worldwide exchange." i'm seema mody. >> the dow posted its biggest interday drop in three years. futures point to go a negative open. >> the yields on the ten-year clings just over 2% after falling to the lowest level since may 2013. while brent and wti continue their slide.

netflix and necessarily fall after hours. >> president obama says the cdc will be armed with a s.w.a.t. team to deal with the ebola crisis. this after the second dallas nurse affected with the virus is transferred to a hospital in atlanta. we're getting eurozone september inflation independent numbers coming out as we speak. 0.8% year on year and 0.5% month on month. the month on month number had been forecast at 0.5 last month. the year on year forecast came in at 0.7, it came in at 0.8%.

so those numbers broadly coming in line with specations. the euro/dollar is down about 2% on the day. 1.2808. it bounced fractionally in the last minute or so since it came out. trade data out, eurozone data to a surplus of 26.1 billion euros. the august trade surplus versus a surplus of 7.3 billion. but back to those inflation numbers, pretty much in line with expectations. 30.4%, that's nothing to get excited about is given the threat of deflation and that being the big fear out there. no? >> absolutely. in line with expectations largely as you say because we've had the visit countries come out in the last few days. germany came out yet. 0.8% year on year and flat month on month. so these numbers confirming that inflation is very low. the euro/market is down.

italy down about 1.3%, france down about 0.5% and the ftse flat. >> let's take a look at futures right now. it was a volatile day on wall street. right now, futures indicating a lower open. we did see the dow trade down by around 460 and then rebounded. the dow after being down that much traded down by around 173 points. leading the comeback, the energy sector. materials rebounding in yesterday's trade. the russell 2000 ending the day in the green at the lows of the day. nasdaq, by the way, briefly entering correction territory. the dow, nasdaq and s&p 500 all lower for the year. they have wiped out their gains. if you look at the ftse cnbc global 300 index, we are lower across the board. down at session lows at the moment, down about 8 points. those renewed concerns over global growth continue to be at the top of mind for investors.

interestingly enough, we continue to see this flow of capital out of equities into bonds. does that trend hold true today, wilfr wilfred? >> absolutely. i want to quickly touch on the u.s. ten-year to start with. the u.s. ten-year wasn't simply a compression story yesterday. it was quite significantly volatile. it was at 0.2% yesterday. yesterday, it did touch 1.8% during the day's trade. so moving very volatile for bonds. and nonetheless, ending at 2%. we've seen yield compressions across the board for most bonds. the ten-year german yield very low. in the uk, we're below 2%, 1 is.98%. we were at 2.6% as recently as the 18th of september. but one bond that is moving in the open set direction, we haven't got it here is the greene greek yield, now well above 8%. where is it? there it is. 8.58%. it was below 7% only two days ago. significant moves there.

that country very much in focus. let's look at forex. the euro/dollar is at 1.28. over the last ten days, the u.s. dollar has flirted with its highs. the only day when it showed signs of giving up some of those yields, it's bounced back the following day. it's flat against the yen, 105.8. the aussie/dollar, 0.8732. cable is basically flat, bang on 1.6. sri jegarajah is in singapore with an update for us. let's check on the asian markets. >> i want to pick up where he left off in the dollar/yen cross. the glory days that we saw of 110, that appears to be something of a brick wall right now. so the dollar is on the defensive against the japanese yen. so appreciate bing japanese currency. bad news for the exporters. we did see it drag down the likes of toyota motor and honda

exerting broader pressure on the nikkei 225. at the close, we're looking at 4 1/2 month lows for the nikkei. elsewhere, shanghai, the composite was a bright spot earlier on the session. it was trading in positive territory. it's succumbed to the weakness, as well, despite the fact that we had better than expected lending data from the big banks. the market there settling 0.7% lower. we're looking at risk aversion in the main with the exception of the aussie battler here. in my opinion, it's going to come down to fed speak today. yes, the topic is quite academic. she's going to be talking about inee equality. is she going to sole vaej market

sentiment? one wonders. back to you now. >> it was a big day for u.s. equities. the dow, s&p 500 and nasdaq have erased their gains for the year. the s&p 500 moving well below its 200-day moving average. renewed growth concerns, fears about ebola and disappointing data out of the u.s., that retail sales number weighing on investor sentiment. but if you're looking for volatility, look no further than the dow jones industrial. still, a big move in the dow. its worst day of trade since 20111. price of oil is in focus. it continues to slide. wti crude trading at the lowest level since june 2012. brent settles down by 1.5%. now, fears over a broader sell-off, disappointing data out of the united states, that

resulted in the vix trading above 30, indicating that there is a lot of fear out there. >> seema, thank you. a lot of volatility. what is driving that volatility? joining us now, matthew hensley. there's lots of possible fears and factors out there. yesterday, what was it? >> i think investors had quite a few of their core beliefs shaken in recent weeks. the fed having our back regardless of the economic environment, that's been challenged. members of the federal reserve talk about raising rates, not raising rates. so people become uncertain about the trajectory there. >> emerging markets are flowing not least of all because rates

are rising, but we all thought the u.s. economy was the one rock which we as global investors could rely on. yesterday with the data that we saw, that was shaken. >> does that beg the question whether the u.s. economy can continue to strengthen despite global growth fears? >> that is the question investors ask themselves. clearly with yields where they are, lack of economic growth globally. we've had china to rely on, but growth is clearly slowing there. other parts of asia and emerging markets, there are issues there from brazil to russia. we have always had the strong u.s. economy and suddenly they are looking to with stand the pressures that the global world is having to deal with. >> the s&p 500 bottomed on the 6th of march, 2009. that's 5 1/2 years we've had of

appear equity market rally. surely this has been expected. >> yeah. if you look at the average bull market, this is the typical average if you look at history. but this is not a typical market. the fuel behind markets is clearly being questioned. that is confusing people. >> you were just saying the fed. is there a chance, given the recent market volatility that the fed will step back in and perhaps provide quantitative easing from qe4? >> all we heard is that rates are going to rise and the data suggests rates need to rise.

>> we need to look for clues that this is weakening. it's going to be very, very important. >> markets will be in focus. matthew beesley, thank you so much for your time from henderson global investors. head to our website for a live blog of all the latest market action, as well, cnbc.com. let's give you a rundown of what to watch this trading day. it will be a big day for wall street. weekly jobless claims out at 8:30 a.m. eastern, forecast to rise by 3,000 to a total of 290,000. at 10:00, we get the latest association of survey of home builders. charles plosser, atlanta's dennis lock heart and minneapolis's president kocherlakota. for earnings, united, delta air lines, goldman sachs and united

health out before the bell. google and sandisk will be out today, as well. warren buffett has cut his stake in tesco to under 3%. he previously had close to 4% holding of the troubled u.s. grocer. berkshire hathaway's portfolio recently called the investment a, quote, huge mistake. tesco shares down a fraction today and down significantly over the last 30 days and year-to-date. a dow component was in focus today and that was walmart. walmart cutting its full year sales forecast citing the strong dollar and the u.s. cuts to food stamp program on its lower income customers. the retailer slowing the number of new store openings as it shifts more spending to its joan line operations. shares fell more than 3% wednesday and it fell further in after hours trade down about 1.9% in frankfurt.

>> so what should investors do now? more of our special market coverage after the break. act i. scene 3. open port twenty-two-oh-one-seven on the firewall for customer db access. install version two-point-three of db connector and ensure verbose flag is set in case of problems. (clapping sound) isn't the cloud supposed to make business easier? get the one that can connect to the systems that you already have. today there's a new way to work.

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welcome back. u.s. futures in the red after a volatile day on wall street sees the dow swings about 213 points.

share plummet in hbro arrives on the scene. >> and president obama mobilizes response teams to deal with the ebola flagship. >> net flex plunging in after hours trade. third quarter profits were in line with expectations, the company added fewer than expected subscribers. hbo plans to launch a stand alone streaming service next year. julia boorstin discusses the disappointing growth. >> we get addicted sometimes to beating our own numbers. for the last three quarters, we underestimated our growth and

overperformed. this quarter, it was the other side. we estimated too high and we came in below that. >> you can see more of julia's exclusive interview with reed hastings today. right now, netflix down 19% in frankfurt. indeed, a big mover. >> it's great to have you back again. structurally, such an interesting area. but in the shorter term, so much competition coming up. these results, quite a negative supply. >> that's right. we've been negative on netflix for a while because this company is turning from the hunter to the hunted. when netflix came along, it offered -- about five years ago, it offered unlimited streaming on its own technology platform built by roku. that was totally unique. nobody else did it. now it has competition in every field. so it has technology companies competing on streaming platforms. there's nothing new there. it has content companies like

time warner's hbo providing their own service with their own subscription. >> what is the key for success moving forward? >> two things. at the moment, everybody is talking about content. the movie studios are deciding not to give their best to the platform companies like netflix, amazon. they're keeping some for themselves and using other people's technology to make a profit for their own content. but i think the real threat is the fact that no technology company is going to get a full package of content. so i see streaming move. the real winners are the content housers. the real losers in the short-term are tech companies.

and because netflix doesn't have an internet ecosystem, it's just a one-trick pony, it could be in trouble. the other thing to remember is net knew translatety. any minute now, the fcc is going to rule on whether they allow fast lane access and people on netflix could be hit. >> we'll talk more tech stocks in just a couple of minutes. the second dallas nurse infected with ebola has been identify as 29-year-old am better vincent. she flew from dallas to cleveland on monday. she told the cdc her temperature was 99.5 degrees, below the agency's threshold. so she was not told she could fought fly. chris has the latest. >> hi, seema. that's absolutely right. this nurse has been taken to

atlanta emory university hospital in atlanta. that is one of four specialty sites that streets diseases like ebola. she was removed from dallas about 5:00 local time yesterday afternoon and flown to atlanta for further care there. that hospital has successfully treated three ebola patients n united states. meanwhile, back here in dallas, another nurse continues to be taken care of, although the local nbc here is reporting that it is also possible that she might be moved to atlanta. that hospital just has a certain level of expertise, trained nurses and doctors who are used to taking care of this type of problem. here at texas presbyterian hospital, there are currently about 7 5 staffers who dealt with the ebola patient who died last week, thomas eric duncan. those people are being monitored for any symptoms. texas health officials have said they expected health workers to

come down with ebola from dealing with duncan. two of them now have. they're watching the other 75. so far, none are showing signs of ebola. back to you. >> chris, thank you so much. ebola fears one of the things rock rocking markets yesterday. coming up on the show, we're going to go big on wall street and what's impacting stocks going forward. that's coming up on "worldwide exchange."

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let's get a check on u.s. futures. the dow jones industrial indicating a move to the down side by 99 to 100 points. we are seeing a triple digit move to the downside. wow, s&p 500 indicating a move to the downside by 16 points. nasdaq down 47 points. this after we did see a big sell-off on wall street. we saw this move from the equity to the bond market and that continues to be holding true today. >> absolutely. it's not the only place where there's a big surprise. european markets opened up 1% earlier today. the stoxx 600 now down 1% after the big sell-off we saw yesterday and following suit today. the most notable one, italy, down 2.14%. >> earnings will be in focus, as

well. ebay third quaer profit beating expectations on continued growth from paypal, but revenue missing expectations. the company is cutting its full year revenue outlook. trading flat, though, on the day. 1234 what are your thoughts on ee bail and the spin-off of paypal? >> ebay looks like a company that could be in trouble. all of its peers are building internet ecosystems. it's doing that at a time when it's only a leader in two out of all the tech cycles that are in play. >> and so let's just take a step back and we'll talk about the greater competition with netflix. we're talking about the likes of amazon and ebay and alibaba continue to threaten ebay. is it best to go with the

biggest innovators like google with the biggest firepower? >> i think the internet is withdrawing. people are closing in, they're creating gardens. facebook is trying to cut off google from its search. amazon, if you go shopping, if you go to amazon, you cut off google from its search, as well. the successful companies are building new ecosystems. ebay looks like a company without a vision. it doesn't know how to build an ecosystem. instead of building one, it's splitting it up. >> and looking ahead to apple's event today, anything significant you're expecting there? >> i'm hoping to get some news on am tv and i'm hoping to get more news on apple pay. we don't know much about these two products that could be block busters, but we don't know. and with the internet tv products, it's important to signify that we still have a blockbuster product to come. so the internet tv that many people think of today is really nothing of the sort. it's a hybrid smart tv, just a

tv connected to the internet. when all television viewing is based on a single operating system, that's when you get internet tv because that's when apple or google can see everything you're doing on the tv. >> cyrus, thank you so much for joining us. as mentioned, apple is holding an event at its headquarters today at 1:00 p.m. eastern where it's expected to unveil new ipads and maces. leaked images of an ipad mini 2 and ipad air 3 were spotted on a website wednesday. they were later removed, but expected to show both tablets will now include a touch id sensor. bucking the downward trend in the market, up about 0.8% in premarket trade. hedge funds come out as the big losers on a volatile day on wall street. we get details after the dow poses its biggest intraday drop in three years.

u.s. sfurchs kath a lower open. i'm seema mody. welcome to "worldwide exchange." >> and i'm wilfred frost. >> the dow indicating more than 100 points to the down side after seeing its biggest

intraday drop in three years. >> the yield clings to just above 2% after falling to the lowest level since may 2013 as brent and wti continue their slide. netflix shares tumble after signing up fewer new subscribers than expected in the third quarter. president obama says the cdc will be armed with a s.w.a.t. team to deal with the ebola crisis after a second dallas nurse infected with the virus is transferred to a hospital in atlanta. up, down and all around. it was a wild day on wall street. fears over ebola and isis on the

march all resulted in investors hitting the sell button. still, a significant decline in equities. bond getting a lot of attention. we've got the ten-year treasury yields breaking below 2% for the first time since may 2013. you can see futures indicating a lower open. dow down about 100 points in premarket trade. s&p 500 down about 20 points and the nasdaq seeing a drop of around 47 points in premarket trade. so the volatility will likely continue into today's trade. all eyes were on the dow. in fact, it was down as much as 460 points at one point in the day, but then it recovered a little. financials, in fact, the worst performing sector, despite that better than expected report from bank of america. keep in mind, all ten s&p sectors did end lower. but despite the overall sell-off in stocks, there were some bright spots. one sector bucking the trend, home builders.

this as investors flocked into bonds, sending rates lower. we saw lenar, kb homes all seeing gains across the board. some of the energy stocks and utilities, they rebounded. we had duke energy and a couple of the other showing a little bit of green. johnson & johnson, up about 1.23%. so despite that sell-off, wilfred, a couple of bright stocks, stocks that saw a gain. >> exactly. and not just the green spots, some of the red spots creating opportunities can make the money. volatility back with a vengeance. and we've been asking our guests what they think of the moves and where they're putting their money. european markets, of course, very much in the red and those things do create opportunities for people to make money. the ftse 100 down 1%. germany down 0.8%. france down the best part of 2% and italy off 2.5%.

the stoxx 50, theed broer indicator of the european sentiment is down 1.63%. down about 12% so far today. over 30 days. an announcement is chief options strategist at bull's eye options. allen, extraordinary volatility over the last few days. what do you think is driving that? >> i think it's a couple of things, but technology is one of them. the fact that everybody uses this information instantaneously, the velocity of money is faster than it's ever been. electronic trading, people can make decisions good or bad very, very quickly and they can react instantly. .i think people overreact. i think that's what this is. i was caught a little bit on this move. i didn't expect a big, big sell-off, straight down over the past three weeks. we haven't seen any stabilization or bounce and that's what we need to see to judge whether the bottom is in. >> you are right. you've got a little bit of blood

on your chin. i'm not sure if you're all right. i hope you're doing okay. we don't mind at all as long as you're all right. we'll come back to allen in just a second. of course, a significant volatility in markets over the last couple of days. allen pointing to volatility in the tech sector. we're looking forward to google results there. to buck the trend and get markets going again. >> i don't know. we had that better than expected report from bank of america yesterday. the financial sector underperformed the worst sector in the s&p 500 in yesterday's trade, all focused on goldman sachs, of course, their earnings due today. google, if they can buck the trend and help the tech sector come out of the recent negativity, it will be interesting to see if that does take place. >> absolutepy. allen, let's go back. i hope you're doing okay, allen. what about this volatility? where are the opportunities for you? yes, it can be painful in the short-term, but a lot of value coming out. >> well, you've got to think

long-term. what's your investment horizon? are you thinking next week, next month, next week? these are opportunities. so markets here are showing positivity. we have oil at extreme lows, that's positive for the consumer. you have interest rates continuing to go down. that's very much a positive. we're not going to raise rates anytime soon. and gold made a key reversal, whereas it made new lows in the last month and closed higher on the date. if gold gets back about 1350 1k3 targets 1500. so there's some upside potential there, but a lot of these stocks obviously are at a discount. >> where do you put money right now, allen, is it cyclical stocks or defensive? >> i don't think you want to get that. i think from a risk/reward standpoint, you want to look at opportunities here and not give them large leash. but i think the action from yesterday is very important. we had that flush out and that's typically how these things end. if you look at volatility, the vix, the mid point in the vision from the last couple of years, 2011 highs to these recent lows

is about 29. so on a weekly basis, we want to look at that. but i'm looking at options from january 2016. some in the money calls from companies that i would like to be in position to gain from in the long-term. again, it's only been three weeks. and there are some strategies right now. you can sell cash, stocks you want to own at a lower price. puff the money and you want to get into them, that's a great strategy to get in at a discount. and if you don't, you get paid for it. >> this has impacted investor sentiment. how much do you think confidence has been rattled by the convenient market volatility, allen? >> yeah, i think, you know, the confidence issue is big. and it's amazing how quickly people can go from being so optimistic to so pessimistic. i think that's a master of technology with twit he, with instagram, with online video. everybody gets information instantaneously. the big issue in america is ebola. if you look at it, we have had the same amount of people die

here in illinois from west nile disease as all of america from ebola. it's obviously very unfortunate, but i think it's a fair/panic reaction. unfortunately, panic can cause further panic, even though the fundamentals are still very, very solid. i think the ee moel motion comes into play longer than it ever has. people need to think through things as the long-term and look at this as a market opportunity. earnings are fantastic. corporations are doing fantastic. >> thank you, allen. chief investment strat gets at bull's eye options. we want to hear your thoughts on the market moves. what do you think st behind the sell-off? john tweets selling and buying gold for the long haung, the bears are here to stay for a long time. so we got some people that are, despite the recent moves to the down side, are bullish on this market. man tweeting u.s. fed quantitative easing is a good thing. don't put a damper on it by driving down sentiment and confidence. trumpet this triumph. while timer tweets slowing

global growth is the only real issue, changes in man tear policies and ebola are making it more volatile. and gordon wiebts herd mentality, it makes more money. join us on the conversation here on "worldwide exchange." get in touch with us, worldwide@cnbc.com or tweet us@krenz wex. coming up, "house of cards" may still be a popular show, but that doesn't mean people want to pay more to watch it. why netflix saw a huge drop in its price after hours after the break. go ahead and put your bag right here. have a nice flight! traveling can feel like one big mystery. you're never quite sure what is coming your way. but when you've got an entire company who knows that the most on-time flights are nothing if we can't get your things there too. it's no wonder more people choose delta

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the second dallas nurse infected with ebola fly from dallas to cleveland the day before testing positive. she was not told she could not fly. president obama has ordered the government to monitor and respond more aggressively to ebola threats. nbc's tracie potts is in washington with the latest. >> well, president obama is actually clearing his schedule again today to stay here and deal with ebola here on capitol hill. there is a hearing and we're going to hear from the head of the medical division for the

texas hospital that has been dealing with these ebola patients. he says in his advanced testimony that he admits they made mistakes and also that they've learned there's a difference in communicating with their employees, telling them what you should do if an ebola patient comes in and training them hands on how to deal with that. so some lessons learned there. we're going to hear from dr. thomas frieden, the head of the cdc, who has 13 pages of advanced testimony from here. i'm facing some tough questions about whether or not the cdc did enough quickly enough to deal with this. they are now considering putting the names of people who are being monitored on a no-fly list after one of those nurses who was infected flew to cleveland and back and now there are repercussion us as a result of that. >> tracie, thanks very much. let's take a look at u.s. futures. this morning, point to go a lower open across the board. the dow jones now down 204 points in premarket trade. s&p 500 down about 31 and

implying a lower open. and the nasdaq, we've seen a lot of volatility in the nats dak which at one point briefly entered correction territory in yesterday's trade. right now, indicating a lower open by around 70 points. renewed economic fears, volume till market raising questions of whether the fed needs to step in and issue a new round of quantitative easing. and the bulls running for the exit today as they did on wednesday. and it biggest losers of all in the recent market turmoil might be the hedge fund industry. >> jackie deangelis has the latest. >> good morning. hedge funds on pace for their worst year since 2011 as several of their big and most popular trades turning south. managers, of course, forcing to cut some of their losses. the sharp and sudden falls in u.s. treasury on wednesday caught many times offgaund. they've been positioning themselves for an improving u.s. economy and the likelihood that the fed would start hiking interest rates next year. now, october is shaping up to

away worst months for some of the funds than september was while the industry lost nearly 1%. big named managers including the tiger clubs like chase coleman who used to work under veteran julia robertson have all seen their funds fall into the red as tech stocks have been hit pretty hard. the sharp drop in oil prices has created huge losses through several funds. in addition to using crude as a bet on improving economic growth, funds have been buying energy stocks and bonds. the possible collapse of the merger between abbvie and shire have hurt additional funds. but the u.s. government's crackdown on tax inversions have forced companies to reconsider the merits of deals like this. abbvie announcing today it will recommend shareholders vote against the merger.

paulson, perry capital and big ackman' per shing square are among the funds to have bet on the common or preferred shares of fannie mae and freddie mac. those stocks fell earlier this month after the lawsuit dismissed the lawsuit against the government that had been seek to go restore value to the company's equity. ackman's per sheer squares down 13% from its flow price on wednesday. some analysts are attributing the late rebound in the markets on wednesday to hedge funds, buying back stocks so they can cash in some profits on short position and cover losses on long positions. back to you. >> jackie, the volatility in the commodity space must be weighing on edge funds. in 2008, it went from 144 to 33, i believe. does that mean the price can continue to move to the south from here? >> you bring up a really

interesting point. it's one of the points that traders have been using as a calming to these volatile markets. they say, look, it could get worse. it could go down to 3 the 3 as you pointed out. what is interesting to me, being n pits and talking to these guys, usually there's consensus on where they think the price is going. some 350e78 think we're going to go up from here. this is a bottom in oil pries and others are saying it could get worse. the truth is, no one really knows at this point. back to you. >> we'll continue to watch. thank you so much for your time. we got move of our professional market coverage coming up. the dow down 200 points in premarket trade. stamps.com is the best.

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talk about big moves, netflix is down 25% in premarket trade. netflix blames a $1 price hike for the discouraging numbers. it's down about 3% in trade. u.s. banks stocks suffered their worst day in nearly three years on wednesday. the recent market turmoil and worries about slowing global growth is fueling fears it may push back its rate hike. jm morgan down more than 4% yesterday. goldman sachs reporting first quarter results today at 7:30 a.m. eastern. theback is forecast to earn $320

a share up from $2.80 a year ago. analysts expect revenue of $7.8 billion, down from last quarter's 9.1 billion. davis, what do you think of goldman sachs ahead of earnings? yesterday bank of america reported better-than-expected earnings. right now, financials are being driven by the macro issues. alternatings season has been pretty good. in terms of goldman sachs, they're 8 for 8 over the last eight quarters, in terms of beating earnings. they've beat earnings by about 25%. yet the stock has gone down the day they're reporting earnings. we think it positions the stock to do better when the markets settle down.

>> do you want to have access to retail banks or investment banks right now? >> we like the financial group in aggregate, but we would be very diversified within that group. so we like a regional bank which is reporting earnings today. we like jpmorgan, which reported good numbers earlier this week and we also have morgan stanley. we don't own goldman sachs. we do think that probably if you have a 6 to 12-month time wore rideson, the stock should be about 10% to 20% higher. >> david, thanks so much. >> i want to update on the markets because it watts a wild day on wall street. oourchs futures indicating a lower open in pretty market trade. the s&p 500 and the dow jones suddenly at the lowest level ever since april of 2014. 2 nasdaq entering briefly correction territory, 10% below

its recent highs. down about 40 points in premarket trade. the s&p 500 very much in focus for investors. it is still trading below its 200 day moving average. the focus on the dow, as well, after it traded down as much as 460 points at one point in the day, sparked by that u.s. retail sales number which disappointed the street. wilfred, i know you're watching, but european markets which are now especially low. i know that inflation number coming in in line with expect ages. investors don't seem to be reacting positively to that number. >> absolutely, seema. it confirmed inflation is weak across europe. we're looking at the four main markets in upper, all down significantly. the stoxx 600 joufr all is down about 2.25%. it upped up today, down about 1% throughout the open and it has worsened throughout the day.

now down 2.25%. france down 2.6%. italy down 3.3%. and also significant decline necessary both greece and portugal, as well. the stoxx 600 intra day trade down significantly having opened up. joining us still, david katz at matrix asset advisers. extraordinary moves across the board over the last few days in volatility. what is the main factor driving this? >> right now, the path of least resistance is lower. the market is panicked about a lot of things. good news is overlooked and bad news is considered to be very bad news. the ebola scare in the united states is putting a -- on the overall attitude in market sentiment. we think if you have a three to six-month time horizon, you might feel bad if you're buying stocks today or tomorrow.

there ever a lot of very good businesses. if you can turn down the volume and see stocks go lower, we think this is a very good entry point. >> and is this just an institution shakeout, david, or is this a good time for retail traders to buy the dip as valuations get reset? >> right now, you've got a lot of people leaving the market. the it's very, very worrisome when people wake up today like, futures are down, you're expecting a bad day. we think eventually the dust is going to settle. earnings season is starting pretty good. jpmorgan and wells fargo said yesterday or the day before that the u.s. economy is doing pretty well. johnson & johnson raised their earnings guidance for the year. if you can turn down the volume, we think the news flow is not going to turn out to be as bad as people are anticipating.

we would buy this dip. >> do you think that trend will hold true in 2014, david? >> we actually do think it will hold true. if you look, a bad october is generally followed by a strong november -- dice. the midterm elections from november to the following 15 months has generally been an exceptionally good period for the stock market. we think this is setting the stage tore a good enof the year and a better next year. david, thanks for your time. dow jones industrial indicating a lower open by 224 points. a big day expected on wall street. >> absolutely. the euro stoxx 600 is down 2.6%. stoxx auto volatility has hit 35.5. will that carry into u.s. trade? that's it for today's show on

"worldwide exchange." i'm wilfred frost. >> and i'm seema mody. "squawk box" is next. tomorrow. dads don't take sick days, dads take nyquil. the nighttime, sniffling, sneezing, coughing, aching, fever, best sleep with a cold, medicine.

good morning. breaking news, that nurse, the second one infected with ebola was granted permission to travel on a plane. this raises more concerns about the government's ability to control the spread of the deadly disease. and ebola was among the many fears impacting the markets. stocks managed to bounce off their lows and gain back 400 points. in any event, the dow closed

down almost 173 points. but here we go again. u.s. futures are doing this morning opinion. and shares of netflix taking a big hit after subscribers numbers came in a little bit light. don't look now, but hbo is getting right into your backyard. is sate here. i guess they meet netflix's. it's october 16th, thursday, 2014. the world is still spinning, at least for now, and "squawk box" begins right now. good morning, everybody. welcome to "squawk box" here on cnbc. i'm becky quick along with joe kernen and andrew ross sorkin. this is coming as we learn more details about the second flas dallas nurse to be infected by the deadly