nobody cares because of ebola. >> could affect jobless claims in the future. probably not. >> we'll see. >> market knee-jerk. >> market is not going to care about jobless claims. >> thank you. that does it for us today. right now it's time for "squawk on the street." good morning and welcome to "squawk on the street," i'm david faber along with jim cramer live from the new york stock exchange. carl is on assignment today. let's give you a look at futures as we are a half hour from the open of trading on another important day. you can see we are set up for a significantly lower open, similar to what we saw yesterday. of course, we did plunge yesterday and then came back a bit. then plunged. then came back a bit. how about that ten-year yield?

in many ways that was the story yesterday. that incredible drop in interest rates we saw falling below 2% briefly. 2.047%. again, crude oil almost 25% off the highs of june, i believe it was. wow. >> these are two stories favorable for consumers, even though we did get that retail number that got people scared. >> what is that about this positive spin? >> mortgage rates and gasoline prices are important things. they both are coming down sharply when it comes to the consumer. jobless claims today. >> jobless claims are amazing. $1 trillion cut for the consumer in oil. refis. a tremendous number of people at 5% that can refi and a

tremendous disease that can kill people in our country. >> and fear moves markets. that fear may be real but not necessarily rational? >> i think when the government creates confidence, it's not rational. i think the government created a lack of confidence in its response. >> how much will the market move? yesterday we had so many different reasons we can cite. how much is related to concern about ebola. >> huge. >> you believe that? >> yes, i do. i like the fact that rates are down. i like the fact gasoline is down. yes, baker hughes has a bad quarter. we have companies with great quarters, no one cares. i think that has a lot to do with ebola and less to do with the fact interest rates went below 2%. i know doesn't fit the jpmorgan model. we are free form here. >> we are. we are going to hit everything we need to hit, whether it be goldman sachs' concernings which

were good and netflix yesterday which was bad. >> this sounds silly to people because they don't know what shire is. you look back and think about united airlines. >> that was far larger, by the way. >> relative size for the market and everything -- >> let's go back yesterday. the futures were up 5/6 between 3:30 and 5:30 in the morning. then we got the second health care worker and immediately we went down. today there was nothing. we were up 4.5% at 3:30. the hours i'm trying to keep on this thing are not healthy. we have 3:30. then went down 24. that move even though we had a huge volume day yesterday, things are happening with very little money.

then being followed up on. >> i also think to a certain extent you are seeing a number of hedge funds clear the deck to reposition themselves and say i'm going to take the pain. i'm done for now. i'm not going to ask if i'm right or wrong. i'm just going to say the market's right and i'm wrong. let me take my pain and let me start again. i've got three more months to this year and i may need to reposition. abbey shire forced repositioning. again yesterday, i would have argued that was one of the more important components in the dynamic why we moved down sharply. that was pain felt at a level we have not seen. >> waiting for that to bounce. >> in 25 years. >> and that risk guard community is much bigger than it used to be. >> we are talking billions of dollars which pressured other stocks. it can have that spillover effect.

>> you saw in the margin, typically when the margin clerks are done you had to woosh up. they were finished selling. at the same time, this notion of where people were, where were the big hedge funds? they were in oil because why not? isis is about to take over baghdad. >> they are getting crushed. they are long oil and short treasuries? >> yes. >> that's a good place to be. >> stanley is one of the smartest people i ever met. i met him in 1989. >> is he clearing the decks, repositioning? >> he gave a presentation delivering alpha. it was a brilliant presentation because it said with these inputs we should be at 4% on the fed. if anyone acted on that and did the tlt and did the bonds, they are not in business if they lever. they went out of business. i'm talking about -- i have seen in 1987 i was working out of someone's office.

okay? that person didn't open the next day. i came to work and he didn't open. i'm looking for office space. someone went out of business. you don't find out who went out of business for another four weeks. if you took the position that to be long oil and short treasuries -- >> you're in trouble. >> you've got to call -- >> this is not 1987. >> no. it's not systemic. we can go back to 2007 when i was worried about my paycheck. i remember seeing joe kernan in the kacafeteria. this is nothing like it. >> there are no moments equivalent to what we are seeing. we are down from the highs. >> i saw the former treasury secretary at lunch yesterday. no one ate lunch during that period. you ate at your desk. we ate at four seasons.

>> let's move on to particular stocks. >> i want to be very serious. the losses are big. >> they are. greek yields are up too. >> it was the greek situation that broke at 5:40. global growth is slowing, which is true. certainly in europe. we can no longer rely on our central banks to control it. it's going to move out of their realm of ability to control. >> we went from inflation, huge inflation scare four months ago to a big deflation scare. that's on a dime. now a lot of the commodities i follow are not down that much. they would spike if china were to come back online. that's a whole other issue.

you see iron ore stocks being cut. the thing that shocked me the most baker hughes reporting that the gulf of mexico drilling, and margins are compressed. the hedge funds are so poorly positioned. you see that play out. then you are going 0 see companies report good quarters and people will say they're bad quarters. >> was goldman sachs a bad quarter? was a good quarter. judge, not at all. it was a good quarter. soon as it went down we reported, well the stories were it wasn't good. bank of america, i speak to senior management. going over line by line. i read when the stock was up 17 cents, i couldn't believe how much money they could make without the justice department. c-car will be good. they'll return capital. when the stock was down 50 cents at the opening, it suddenly became a bad quarter. i read a twitter, someone said you can't tell if they made

money. i've been analyzing bank earnings all my life. it does take five hours. it takes a long time. >> it does take a long time. >> but to say bank of america was good at 8:30 and bad at 9:35 with a good conference call thax's what we are dealing with right now. >> let's tell you what we are dealing with with netflix. shares taking a big hit despite a beat-on earnings. the video streaming company reporting slower than expected subscriber growth saying $1 price hike to $8.99 a month discouraged new sign-ups. here is what the ceo told julia last night. >> we had such great growth over the years. we get addicted sometimes to beating our own numbers. for the last three quarters we underestimated our growth and overperformed. this quarter was the other side. we estimated too high. came in below that. >> we are going to have of julie's interview with reed

hastings. >> that is a 27% move down after hours. >> when they raised the costco ca card, what happened? more members. when amazon changed pricing, what happened? more members. these guys changed pricing, member decline. >> is there not enough price elasticity from a buck up? it's significant value. you're still paying $14.99 a month for hbo. >> the conference call was very disjointed. at one point they said, i don't mean to laugh, we could have blamed the home depot breach. really? >> i hadn't thought about that. i was watching "orange is the new black." i not once thought i shouldn't pay them because of home depot. >> they spent an enormous amount

of content. netflix is similar to what hbo is. it's going to have original content. nothing near what hbo has at this point and a lot of movies you want to watch again. and other tv shows. >> when things are going good, you're fine talking about adam sandler. he has a hit every summer. when things aren't going well, i don't want to hear about adam sandler and how that is going to be good. this is a conference call that is more like a warhol than the rembrandt conference call of bank of america. i read through it. it's like there is a moment where david wells, who is very smart, the cfo. they are going into the conference call. he goes, not really, before i jump into this -- they are midway through the beginning, before i jump into the question, i didn't provide the safe harbor statement. we will be making forward

statements. michael, back to your question. in terms of the revenue number, we sort of missed on the totals. sort of missed? s my dog ate my homework, man. sort of missed? >> the history of this company has been marked by -- >> seat of the pants. >> exceeding expectations far beyond anybody's imagination then occasionally disappointing. and sometimes making a poor move, including one key move. >> and it's been a buy. is the long-term situation good? netflix "breaking bad" and "house of cards." we think that puts us in good business. we do not believe u.s. subs can exceed 59 million. total address of market, not there. >> netflix will be down over 100 points.

$329, $63.30. >> maybe it's chipotle. they are down 126 points. turned out to be a great buy. i'm not saying netflix is toxic. i am saying the glib nature of the conference call rubbed some people the wrong way versus what would have been a more, what you would have expected when chipotle missed, let me explain why we missed. it was solid. this was jocular. >> understood. let's move now to ebola. numerous developments regarding the outbreak. let's go to meg terrell in washington. >> president obama canceled planned travel today after staying to meet with cabinet members on the u.s. response for ebola. he'll be here today to follow up on yesterday's meeting. we are here ahead a congressional hearing where cdc

director tom frieden will testify. along with officials of the fda, homeland security and the hospital system in dallas. in prepared remarks dr. daniel varga chief clinical officer apologizes for mistakes made in the initial treatment of thomas r. duncan. mr. duncan was initially discharged when he arrived at the hospital. he testified when mr. duncan returned to the hospital it followed cdc and texas state health recommendations using protective equipment. we expect to hear questions about the response from dallas and on u.s. preparedness overall. there have been renewed calls to block flights from affected countries in west africa which the cdc said would be counterproductive to stopping the outbreak at its source. we know the second health care worker to be diagnosed with ebola flew from cleveland to dallas on monday before she started feeling ill. now the 132 passengers on that

frontier airlines flight are asked to get in touch with the cdc. vincent was said yesterday to be ill but in clinically stable condition. she was transferred to emery university hospital in atlanta for treatment. >> thank you, meg. time for breaking news on production with rick santelli in chicago. >> industrial production for may better than expected. 79.3 capacity utilization. both numbers are better, but last month takes a bit of a revision hit. the originally released down 0.1%. capacity goes from 788. 79.3 significant. this is our ninth number of the year out of those nine we had four 79.1, the highest levels of utilization going back to june '08. this now makes the comp april

2008 since we've seen a higher operating rate. we want to pay very close attention to that. back to you. >> when we come back, we'll continue to stay on top of the markets. we'll set up for what is a significantly lower open, but we'll see. things change rapidly, don't they? a lot more "squawk on the street."

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take a look at futures there. we are poised for another lower open which we've been seeing a lot lately. s&p closing high, 2,019 on 9/19, less than a month ago. here we are now down rather sharply. although again, it does put things in some perspective for you. >> people are nervous. i have guys that haven't checked in me a long time that are are talking about selling. >> up next, we'll have cramer's mad dash as we count down to the opening bell.

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there is a look at the futures, the nasdaq and dow. netflix not going to help them. well over 100 points. eight minutes from the opening bell. we are expecting that lower open. let's get to our mad dash. >> stock actually up, unitedhealth. why talking about anything up? there are situations where a company reports a quarter. stock has been going down, this is a health maintenance company. they had much better than expected numbers. they raised forecast. your stock can go up. this is a company that historically is sensitive to job xwroet. we had a job growth number today that was good. all these things, if we didn't have ebola and didn't have russia, europe, we would be saying, let's buy this to $90. >> when do we get back to that market? >> that is a difficult question.

>> you keep coming back to ebola, which amazes me. i find it hard to imagine it would have that impact on professionals making rational decisions. maybe it is rational. >> maybe that's the opportunity. i see a lot of reports about companies downgraded. i know every day there are new polls about what whether it is worrisome and we discovered it could be transferred more easily. dr. nancy sneiderman ventures outside her house. she is supposed to be in quarantine. >> those exposed to duncan, so far no one. >> the pioneer airplane has used before the woman. this is a situation hard to

discount, to get into the marketplace. hca had a number. if you were shorting on that, you got your head handed to you today. this company is doing well. if you see the stock down at the end of the day, you know earnings don't matter at all. >> we'll take another look at note flicks and goldman sachs, not to mention that warning yesterday from walmart. we had the impact yesterday. worth discussing in addition to that broader market which we are about five minutes away from the opening bell.

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you'll see baker hughes is down huge. the ruble. you can talk about north american markets were terrible. we are taking 300,000 barrels a day from the saudi. we don't need that. that is displacing u.s. oil. it's almost as if there is a deal to bring down russia. >> thomas frieden has an article at the "times" saying that thing. iran, as well. you pressure iran and russia. we've done it before to russia. this is an oil-based economy. >> putin is saying we are not going to turn off the natural gas. he'll change that in a second. the idea we are taking in 300,000 barrels a day and exxon is paying marathon to take this.

we don't need this. every other country cut back or ceased sending. >> after talking about it on "mad money" what is the number that it becomes not a good thing to pump any more here? is it $70? below that? >> it's case by case. some people have not so great real estate. chesapeake sold huge properties to southwestern. chesapeake needed the money. marcellus. that's not gas. nat gas holding up well. i would tell you there is a lot at $60. there is a lot at $18. the average return at $60 a barrel is gigantic.

they make a fortune at $60. don't believe all the stories you hear. >> we are going to watch oil. the stocks of the major oil companies have been getting it. there's the opening bell here at the big board. ringing that bell liqtech that manufactures filtration systems. at the nasdaq atara. >> look what they are breaking today. they are breaking the procter and gamble. the ten-year at two. the procter and gamble yield is vastly superior. all the input costs have gone down dramatically.

proctor could raise the dividend. where does it go? does it go to $76, $75? do we say sell proctor right here at $81? but buy it back at $70. >> let's talk about goldman sachs which is down after reporting far better than expected numbers. i think the fourth quarter profit was $4.30. estimates below that. they hired more people. started increase. comp ratio about 40% right now. this was a good quarter for goldman sachs. >> you take it out of context of this market. hca and unh, they are able to

give a clear path of what they are going to earn. goldman is not. what you should do is look at the core business. core business is very strong. this is their market environment. stock market traded at $1.85. a person who wants to say i want a bargain. >> they are not the only guys getting roes in double digits. return equity 11.8% the third quarter. they are back at that level, that key level. earning more than their cost in capital. >> no one wants to hear that. they are looking at the stock down saying what does jim cramer know about goldman sachs other than he worked there? i've been waiting for this quarter for ages. this is the quarter that shows you the core strength. nobody cares. >> in a different environment. in the market we had four weeks ago. >> it would be $190.

>> the company did buy back 7.1 million shares during the quarter. that cost $1.25 billion. average price $1.76. >> they are always not that definitive on when they are buying back stock. there is a time the stock was way down. i wish they bought more. this stands for the core. the core is very good. goldman would be up. >> right. >> it was down six one point today. i said i'm going over it line by line. good, better, good, good. stock's down six. i must be wrong. i'm not going to let the stock determine whether i'm wrong or not. i've been trading since 1978. i know how to read these things. i'm not going to let the stock do that. everybody else is. they are letting the stocks dictate their feelings about what the quarters are. csx, monster good quarter. who cares? las vegas sands. this is a good example. sorry to go to my machine.

las vegas sands had a not good quarter. the fact is -- >> 83 cents a share excluding items. >> everyone was looking for a bad quarter. ebay down this quarter. lower than expected outlook. ebay is splitting. >> they go from buy to sell when you see that dramatic. 9.5 growth to 9.1 growth. i could make a place ebay -- >> marketplace business growing significantly. >> thank you. when baba goes to $82, it still will not go through where i felt it would go which is an

incredibly strong story. it's insane because china is slowing. >> singles day is coming up for alibaba. >> we didn't talk time warner. >> was up again this morning and was up yesterday. raised guidance dramatically then introduced what you call an over the top option for hbo. puts it squarely in competition with netflix. you can't have cable. >> we don't have pricing, we don't know when it's coming. viacom was the loved one. you know how scorned viacom has become. >> people are concerned about ratings. the numbers have not looked good. ratings across the board as i reported a number of times are down for everybody, which raises the larger question of the

changes taking place in viewing habits and the way people go about watching. >> "walking dead" beat the nfl. nothing beats the nfl. nothing. >> except when the eagles are transing the giants. >> fantasy says watch the fourth quarter. 0 million people playing fantasy. >> i want to get back to commerce. walmart yesterday -- that was great. >> the walmart earnings, by the way, you know this man who is running it. >> doug mcmullen. i met him a number of years ago. >> he is resetting expectations we've been waiting for. i find that -- t expectations. >> it's not your old walmart any longer. the capital expenditure number still higher than people thought it would be.

they are not going to spend on super vendors. they've got to ramp that up quickly. trying to figure out where their customer is and how to get them into the score. >> i had federal realty on last night. compelling story making the shopping center exciting, putting a hotel on top of the shopping center. walmart is unexciting. in order to get people into a store, you have to have a little pizzazz these days. restoration hardware, we saw initiation. they've got pizzazz. they say when we open a store it's like a big movie. walmart is the most anti-pizzazz store. >> it's hard to have pizzazz. >> have you seen disney? >> i'm looking at it right now. >> this is a stock we'll look back saying what were we thinking? i want you to sell it at $80, buy it back at $77.38.

if do you that -- want to play that game? i can't play that game any more. >> nasdaq is in correction territory. the year high on the composite was $46.10. on the 19th of september. now we are down what you would call at least a correction for nasdaq. that has been driven to a certain extent, you have to believe by netflix, of course, which is down 24%. >> you need to see the speculative stocks get hammered. chesapeake sold properties. sold about $9 million of properties to southwest. southwestern is spending money to buy high quality west virginia and marcellus properties. they are getting killed. natural gas is holding up. this is the irrationality of the market.

that has nothing to do with ebola. people like chesapeake's balance sheets are getting better. it's nitty-gritty, but i'm focused on oil and gas. stock was up four last night already coming down. hedge fund names under tremendous pressure. great thing with larry robins yesterday. >> thank you. hedge fund names will continue to be under pressure. vast majority are going underperform. the s&p certainly. they are competing within their own peer group to eke out what can be gained. >> if you were big in shire, you are trying to bail out the vote. i'm going to get to that in a minute in the faber report. >> sorry. i didn't mean to jump. >> let's get to bob pisani and get me organized here. >> this is not like yesterday. we were down over 300 points at

9:40 yesterday. markets don't care about the number. jobless claims were fine. one trader said, i care about putting in an order and trying to buy at the bottom and finding out i'm 2% 15 minutes after the market is open. they care about oil. when we drop below $80 on crude about 7:10 a.m., the futures went down. you see west texas below -- i saw below there. you've got $80.32. it did drop briefly below $80 about 7:00, 10:00 a.m. big oil still can't catch a break. that is still on the weak side. looking at some of the big names there. you see 3%, 4% decline. those are the big names. we don't know where the bottom

is. ebola, geo politics, none are near conclusion yet. there are small signs of reversal. look at the russell 2,000. it did outperform the s&p in the last three days. it's doing slightly better today. this morning the molsons of the world, walmart, constellation, kroger, all those stocks are down. that defensive play isn't working much. that flattening yield curve is killing banks every single day we see the yield moving down below 2% on the ten year hurts the bank stocks. bank of america, jpmorgan, wells fargo, they are all down side. bank of america went positive on the day. as far as earnings, they weren't stellar. goldman was terrific overall here. they had a strong beat on the top and bottom line.

stock trading revenues were down. it's down 1.75. i wonder if they'll pass on any savings to the rest of us after raising rates throughout the year. there is nothing in the commentary on any concerns about ebola. that is going to come up. the conference call will happen in 18 minutes. i'll see what they have to say. baker hughes, that was a big disappointment. apparently they cited a sharp reduction in activity in the gulf of mexico because of customer. they get a lot of revenues in africa and russia. they had disruptions in libya and iraq. they had a decline on the russian ruble. they had reduced margins all throughout that area, as well.

i did not have a chance to listen on the conference call. down 98 points from the dow, better than it was a short while ago. jimmy choo will be pricing. 160 pence is the expectation. that's 1.40 to 1.60 pounds. goldman sachs highest investment banking since 2007. that's where you make all your money. important to point out. i know that's not what people want to hear. dividend yielding stocks are where you should be buying. no one wants to hear that either. i don't care what people don't want to hear. >> you tell them what you want them to hear. abbey and shire. the deal is dead officially, so

to speak. let me correct that. until abbey shareholders vote against it, if they are given that opportunity. i guess it's not officially dead. abbey's board of directors came out and said what we all anticipated very well might be the case after the late night release we got on tuesday. namely they are done. they are recommending against the deal and put out a press release and a statement that is, to say the least, not that easy to fully understand. they did pay an extraordinarily high price. they went hostile initially. then they became friendly. it was a very big premium. a lot of that premium was to be funded by essentially the benefits of receiving a lower tax rate. and the inversion that would have taken place had they acquired shire. could you fight the treasury and fight certain things that are

changing, but it also could get worse. the board, apparently from what i'm hearing, people close to that board, said it was too much risk to take on for this company begin those changes. here is the language they uses to use. yesterday was the big move down in shire. you had a huge liquidation from so many event funds taking drastic losses on that position. some may own abvie. over 100 million shares being covered, maybe 120 million. here is the language i want to read. the breadth and scope of the changes, including the unexpected nature of the exercise of administrative authority to impact long standing tax principles, and to target specifically a subset of companies that would be treated differently than either other inverted companies or foreign domicile entities, introduced an unacceptable level of uncertainty to the transaction.

many big investors spent enormous man hours saying even in the worst-case scenario, these guys are benefitting from this deal. >> it was just 2% additive in the bottom line according to the work we have done, stephanie and i. >> not enough. hard to imagine you go to a vote here. abvie shareholders will vote and get a vote in favor. that doesn't seem likely. the pain from this is still being felt. you see it in other names. medtronic. the spread blew out yesterday. they are giving that comfort to people asking saying, we're fine. even with that language from abvie which says we are not fine.

they got some guidance that would seem from treasury that said we'll keep making it more difficult for you. the spread has come in after blowing out yesterday. m&a has been a driver of this market. when you see volatility, i talked to bankers saying stuff in the pipeline gets a lot harder to get done. that's always the case. you can't negotiate an exchange ratio and price with this market volatility. it may certainly slow what has been an otherwise extraordinary year in m&a. >> a big boost to the market. >> let's get to the bond pits with rick santelli. >> good morning, david. today's two-day chart day. yesterday's extreme low yields/high prices are significant trying to handicap the next moves in interest rates. looking at two-day of 5s. we haven't taken out the earlier

high yield from today. even as we sit 1.31, we are 21 basis points from the intraday low which is around 1.10 yield. same dynamic in place for a two-day of ten. arguably it hit 1.87, 1.86 yesterday on the low yield. that is significant. tune in to the santelli exchange and we'll talk about symmetry. let's look at the two-day of gilt. yesterday traded down to 192 yield. now hovering about 11 basis points above that. it has taken out its earlier session high yields. we may do the same thing here. what you see is the difference is really starting to shrink.

this could auger from yesterday being a bit of a capitulation on the low yield. tens minus twos, what you'll notice is that is getting flatter. 1.75. normally that would be a couple of quarters away from a recession. does it mean that any more? i am not sure. it's been a heck of a move taking big gains away from the dollar. david faber, back to you. >> thanks, rick santelli. coming up, julia borgson's exclusive with reed hastings. saying the stock has taken a beating is an understatement with shares down 23.3%. one quick look at the markets here. alright guys. the usual. double wings, extra ranch.

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i want to say why ebola is back on people's minds today. very good bloomberg story. diagnose of ebola of a second health worker raises questions how well researchers understand how the virus spreads. is the virus changing in a way that makes it easier to transmit. that's what people are thinking. you count on the other side all the people who lived with this man who died. >> i think it's 48 people. it's 21 days, but we are getting there, so far luckily nobody has been diagnosed. the two that have are health care workers that treated him. >> and how that hospital is known as a great hospital. you've got this feeling of every time we lift maybe there will be an ebola story and we'll give it up. that is central. otherwise when rates go higher, the stock market goes higher. rates were down dramatically at

5:00 a.m., they moved up almost a point. the market is going up. >> down 0.7%. i want to get on what's on "mad money" tonight. >> one of the epicenter is the regional banks. we have bb&t. >> you've got ulta tonight. >> i'm going to an ulta store in queens. mary dillon did a great presentation. she is giving tremendous growth. there will be stocks that will matter again. >> i look forward to that. >> thank you very much. >> more of course on these volatile markets when we return. this is kathleen. setting up the perfect wedding day begins with arthritis pain and two pills.

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welcome back to "squawk on the street." october philly fed comes in a bit better than expected, rounding out data in total today better than expected, 20.7. our last look at 22.5 sticks. to give you some context, our recent high has been the 28 level from august. that was the best since march 2011. let's go through the internals. we saw a huge drop on the

employment index from 21.2 to 12.1. you want to watch new orders. they firmed up just a bit from 15.50 to 17.3. there is another october number out. association of home builders index. diana olick, d.c. >> home builder sentiment down five points to 54 on the nah b's monthly index. street was looking for unchanged. that is a big disappoint. after jumping to the highest levels last month, confidence took a sharp u-turn in october. still in the positive range, above 50, this reverses four straight months of gains. why? the biggest drop in the index components were in current sales conditions and buyer traffic. both down six points. buyer traffic the only component in the negative. sales expectations were also lower, but just down by three points. higher prices blamed for a showdown in sales of existing homes. new home sales took a huge leap in august, but most expect that

number to be revised down. both housing starts and building permits were down in august from july. we get the september read tomorrow morning at 8:30. stocks of the big builders were the outliers yesterday, pulte, d.r. horton. >> we are seeing declines across the major indexes as the nasdaq moving in and out of correction territory today. bertha coombs live with an update for us. >> it's one of those things we've been watching yesterday. it was touching close to there. this morning we touched it. 44149 is the level on the composite. one area we are seeing a little bit of strength is in the chip stocks, the philadelphia semiconductor index is now modestly positive. that's what led us higher to end higher yesterday at the close.

we are going to watch the chip stocks. the biotechs are other thing to watch. we see people swoop in and look for bargain hunting. the biggest drag at the nasdaq today is netflix. that shocking drop following their earnings report continuing to weigh this morning as the stock is a mega decliner. we also have a number of other big caps that are following suit. we do have some signs of a few stocks that are seeming to buck the trend here. including chip stocks. xilinx, micron, wynn and baidu. the chinese internet stocks have been one of the sources of pain of late and showing resilience here. looks like folks are picking their stocks in terms of where they are coming in to buy in this big decline. back to you. >> thank you for that.

the dow is tracking back down. we lost 180 at the open. currently down 116. let's bring in art cashin. yesterday was a big day. you had the heavy sell-off then the recovery at the end. some are suggesting that may be an indicator the selling pressure is beginning to abate. do you think that's fair? >> it's a possibility. i think what we want to try for is a successful test of yesterday's lows. that would make everyone feel better. there is a strange relationship building the past several days. the market reacted to west texas intermediate. the price of oil moves up. we see market sees some buyers come in. they move back down, sellers. >> why is that? s. >> beats me. it may be that some huj funds

may have positions that feed in. it's an undeniable relationship. could be a coincidence. >> who is selling? how much of this move is really being driven by hedge funds who are having margins, trying to get out of some of their crowded stocks that aren't doing too well or shorted positions? >> we only know that anecdotally. the orders don't come in with signatures on them or fingerprints. yesterday's did look to have a large dollop of forced liquidation. >> some people think what we are witnessing here is a big change in market structure and reaction. not the end of qe, but volatility is rising because liquidity is in there partly because of changes. this is maybe the new normal.

these very big swings which could feed back into the economy. do you have sympathy with that? >> i agree with it whole-heartedly. i think regulation was well intended, but we have fewer intermediar intermediaries. that would make for heightened volatility. i think you are seeing doubt pop-up as to the efficacy of the central banks. mr. draghi got away with verbal why i moving markets. i don't think he'll get away with that any more. we'll wait to see if he says something over the next few days. >> one of the things that happened yesterday was because of the moves in the markets, the market appears to be suggesting there is no red lines from the fed. as they begin to speak, what do they now say? >> you heard it from williams. he prepped up qe-4. he said we might have to buy assets again if things got

terribly bad. >> it's interesting to watch the u.s. economic data today has been a positive one in terms of the releases. yesterday, negative with retail sales. is there a growing concern about the u.s. consumer? it wasn't just retail sales. walmart also put out a lower forecast. >> the walmart thing gave a little bit of a hit in the afternoon yesterday. i think there is somewhat of a concern about the consumer. the prices of gasoline are going down. everybody's got a great hope that that will translate into a great christmas season. no sign of it so far. >> maybe they are saving up. $50 for the average family a month is the gain so far. >> we'll see. either that or they are waiting for a giant tooth fairy. >> the question is the sentiment is out there. the stock market continues to slide that could hit consumer retail sales offset some of the benefits of lower gas prices. >> from the investor standpoint, the recent survey still shows bulls outrank bears. it's hard to talk about making a

meaningful bottom when you've got more bulls than bears. >> i have a feeling we may see you later in the show. art cashin. >> keeping him busy. goldman sachs is one of the big movers to the down side. third quarter results beat estimates. mary thompson has been listening in to the conference call. >> goldman as you said reporting stronger than expected numbers. with the help of lower compensation expenses and sales in its investment and lending unit. the company benefitting from a slightly better trading environment at the end of the quarter. on the call, cfo harvey schwarz commenting on yesterday's actions saying it was a tough day for customers and example of investors shooting first and asking questions later. >> yesterday in particular, clearly a mark in the morning where investors were, quite frankly, shooting first and asking questions later. we've seen this market reaction in the past. while painful, it's somewhat a

normal part of how markets function. >> their economists say fundamentals haven't changed in the past 24 hours. doesn't mean the economy will grow or stall. a lot of questions out there. let's look at goldman stock up 6% this year. right now it is trading lower, at least it was earlier. off just about 2.50%. better trading environment for fixed income commodities and currencies in the latter part of the third quarter, driving a big improvement in this important unit for goldman. it was up 74%. quarter over quarter is down 11%. that was weaker than what some analysts were expecting. 4.75 a share, 1.36 more than expectations. revenue coming in about half a billion above forecast. raising dividend to 60 cents a share. back to you. >> also interesting to get those comments from goldman on the market action.

let's send it over to dom chou. >> airlines are trying to rebound after falling hard earlier on the ebola fierce providing support for those. you can see some of the names, delta after the carrier posted better than expected third quarter profits on increased sales. sector getting a boost from falling oil prices. you can see somewhat of a mixed board. overall airline index showing signs of getting flat on the day. >> thank you very much. up next, shares of netflix in freefall since reporting results last night. price increases led to a disappointing number of new users in the third quarter. hear what the ceo had to say about all this. we spoke to him exclusively on "squawk on the street". traveling can feel like one big mystery. you're never quite sure what is coming your way.

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shares of netflix in freefall today. the stock is down more than 20%. 23% right now after subscriber numbers for the third quarter came in lower than expected. julia borgson sat down with netflix ceo reed hastings yesterday afternoon. she joins us with the highlights. you asked him about this miss and subs. >> absolutely. reed hastings defending the number most concerned investors.

700,000 fewer subscribers than forecast. saying it was from a lack of big hits and a $1 price increase back in may. >> with a little bit higher prices, you get fewer subscribers. so that's our sense of it. we can't be 100% sure. we had so much benefit from "orange" and q-2. that's what we think. >> hastings was eager to talk about the big news yesterday hbo is launching a rival streaming service saying it's inevitable because online distribution is the way to go. despite me pressing him on just how bad this competition could be for netflix, he insisted he is not concerned. >> we compete with them like baseball and football compete. people are really in a sports watch both and are involved with both. we have different shows. >> i also asked why netflix is investing so much in movies with the new four picture deal with adam sandler and the "crouching

tiger, hidden tiger" sequel. same day hitting netflix as imax theaters. >> consumers around the world are tired with waiting. with tv shows, it comes on netflix i can see it right away. as movies, i have to wait months and months. we wanted to provide consumers what they want. all the theaters that want to carry "crouching tiger" can do so. they mostly will reject us probably. we are excited about the i max partnership because of the epic filming and scale of what the weinsteins have done. >> coming up on "squawk alley" hasting's strategy for managing rising content costs. back to you. >> that was a disappointing number yesterday. thanks for the comments julia boorstin. joining us to talk more about

it, rob sanderson covering the internet sector. he took down his netflix price target. do you buy this idea reed hastings says the big miss in subscriber numbers is due to higher prices and fading momentum from "orange is nut black" launch earlier in the year? >> i don't know how much we can read into a $1 price increase. does that price many households out? i don't think so. the elasticity comments are debatable. they didn't get the free publicity they get with the big content launches and spent less marketing. at the end of the day, adoption trend is up to the right. they've been above trend line several quarters and came below this quarter. you are seeing the reaction of the stock today because of it. >> what about what he said about the hbo fear? clearly investors are worried about it. he said it's like baseball and football, not really a competitor. should netflix be afraid of a

stand-alone go product? >> i think more content that comes over the top is good for the sector. the practicality of cord cutting gets better and better as you get more options. the analogy is a good one. people will subscribe to the content they like. if you're looking for content options, netflix is a good value. there is a deep library and a lot of originals. >> if i hear you right, is it fair to say you think thesis remains in tact and that eco system becoming a key, but we'll get that more slowly? >> that's the way i'm looking at it. we moderated our adoption trajectory. year over year we were coming from 32% penetration to 38. that is a robust adoption curve. down tick in enthusiasm for the steep of that trajectory, but that's the direction we are going. >> is a loss of a quarter in

market value justified today? >> i think it's a little harsh. this has been the best performing stock in the s&p two straight years. there's a lot of momentum behind it. you've got to break in the key momentum metrics. that's what happens with momentum stocks when metrics down tick. it's harsh. >> i was going to say with this drop, can you call it cheap? it's still trading at 90 times earnings multiple. >> i think you can't value it on earnings. they are investing all their cash flow in cultivating new market. earnings-based valuation is kind of meaningless because of the investment cycle they're in. cheap is hard to argue, as well. depends on what they grow into. that's more controversial today than it was yesterday. >> you brought up international. are investors too excited by the prospect of growth? the number missed.

came in below forecast and is costing them a lot to expand all over europe and beyond. >> i think the value proposition for over the top video will play in every market. there will be a winner. netflix will be in a lot of those markets. the investment community wants them to spend that cash to go cultivate that greenfield ahead of others. i think that is going to be a very long investment cycle. you are not going to be an earnings based story for many years. they are creating a lot of value cultivating these new markets. >> you took down your target 535 for the stock? >> from 565. >> one final thought, if you have one. >> i was saying we are looking at what ultimately it grows into in four, five years in discounting the earnings power out scale. >> jpmorgan, piper jaffray cutting their target for netflix.

thanks for joining us. just a quick check on the market. we are down almost 200 points. session lows. apple is holding a big product event today. apple levels will get new versions of the ipad and i mack today. i make a lot of purchases for my business.

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>> all of that is making the utilities trade interesting right now. it was one of the worst-performing sectors. it's clawing its way back. leading the way lower for utility stocks are edison

international, firstenergy, american electric and ameren. like you said, we are seeing a bit of volatility in the trade. those utilities, the ones to watch. they are trying to claw their way back in the trade, simon. >> thank you, dom. let's look where we are on the dow. this extraordinary move. they say 150 points of losses cuts in literally a couple of minutes. we trade down 58. we were down the best part of 200 a few minutes ago. one of the major reasons we have turmoil in the markets is ebola concerns over protocols and procedures in that ongoing story after two health care workers in dallas were diagnosed with the disease a nurse who works at texas health presbyterian spoke to the "today" show this morning. >> from here to here was uncovered. >> that concerns you and you complained about it or at least asked the officials at the hospital why that was being allowed to happen, correct?

>> in fact, i'll be honest. i threw a fit. i couldn't believe it. >> there will be a hearing on capitol hill today. >> good morning. we are here in washington two hours away from the beginning of that hearing where we expect to hear from cdc director tom frieden and others. a lot of fears arising on travel fears with the second health care worker boarded a flight monday the cdc says she shouldn't have taken. in a number of scares, local reports that an air france plane has been isolated at madrid after a passenger traveling from nigeria complained of fever, shivers and headache. it did see a few cases health officials look to be contained.

in the united states, the cdc is interviewing the 132 passengers on that frontier airlines flight ms. vincent took though says the risk to travelers is low. ms. vincent is ill, but clinically stable. health authorities are monitoring three of hrkac. 50 health care workers entered the room of thomas duncan in dallas. the cdc warned we may see additional cases in coming days. ms. vincent was transferred yesterday to emery with special biocontainment units. there are questions about whether additional payments should be transferred to these speciality hospitals in nebraska, montana and nih in maryland. there are bound to be questions about that and other aspects of the u.s. response today in washington, as well as focus on efforts to stop the outbreak in west africa where it's afflicted about 9,000 people killing more than 4,400.

>> we have an expert on infectious diseases on the show in about a half hour. we want to look at the dow again. incredible volatility. five minutes ago we were down about the best part of 200 points. we cut those losses to down 60. now as you can see, heading back down 129. in the meantime, breaking news on natural gas and what's moving the markets. oil.

lots of action in the energy pits. traders waiting for the department of energy to release data on natural gas storage injections for last week. we are looking for 88 to 92 billion cubic feet. that would be higher than last year. would be higher than the five-year average. it's 94. it's in the high end of the range here. prices are going down. 3.81, 3.76. traders wanted to see a triple-digit injection. prices moving lower because we have seen triple digits over the last few weeks. 94 is a good number. just under 100. we are about in the level where we should be this year. options activity in the high 3.70s to 3.80 range.

i want to point out demand has picked up on the commercial and residential side. we'll have more data on crude inventories delayed from columbus day. we are getting those 11:00 a.m. eastern time. traders focusing on that. crude prices $81.03. that is a snapshot in the energy complex today. >> and there is a lot of focus on the price of oil back above $80. want to focus on the stock market. u.s. stocks are incredibly volatile losing 50 to 100 points in a matter of minutes. the dow is down 125. let's bring in joe lavorgna with deutsche bank, bill stone with us, chief investment strategist with pnc asset management. russell 2000 is now in positive territory. bill, where are these wild sharp

swings coming from? >> i think we all enjoyed the longer than normal move upward. you pile in those that were later in, more nervous holders. we now added, you get the ebola and other things that are difficult to come up with a probability of how bad things could get. you add that volatile mixture. >> there is a laundry list of concerns. do you also see this as a sentiment, psychologically-driven sell-off? >> exactly the latter. the technicals as bill was alluding to. fundamentals don't change in three weeks. jobless claims, tax receipts, ism. >> jobless claims are at a 14-year low. does that matter with the federal reserve focused on a stronger dollar? >> the fed is hurting the

economy. they worried about the dollar. they shouldn't. claims are low. job growth should be over 200,000. we, right now, are running at the fastest pace of job growth since '99. the economy is pretty good. >> i'm told one of the reasons we may have had these really big swings on the market in the last few minutes because one of the feds gave an interview of pushing rates back further and further. we have yellen tomorrow. we have an old situation where because of the moves on the treasury market, it's indicating no rate rise next year at all. they wiped that out. that is the signal the market is giving which is in conflict with the dots they came out with to raise rates. how do they square that? they further upset the markets

maintaining that situation. >> they messed up the communications policy so bad saying qe would end when we got 7% unemployment. they haven't started. they changed the guidance on the numerical targets on unemployment and inflation. they took considerable time which is a calendar date and walked away from that. they are all over the place. i don't think people believe them. what i sense -- >> you don't think people believe them? >> yellen said focus on the statement. you get the minutes and they seem to be more dovish than the recent statement. i don't think the market is paying attention to them but does seem to be pricing in pushing the fed to continue with the qe. i think it's a technical trade. >> here is my question to you. how do we put in a bottom for sharp swings for the sell-off? in the past, what we have seen, some regional fed president or even the head of the federal reserve will jaw bone this market saying we stay in easy

policy. is that what it's going to take? >> i guess it certainly could be part of the mixture. i don't put quite as much power in the fed and maybe we are in some agreement here. i actually prefer to say i think you clear out some of the holders that have come in recently. you get stronger holders there. secondarily, as we were talking about, the fundamentals aren't bad. they are pretty good. hopefully this earnings season, again, it hasn't seemed to pattpa matter. eventually fundamentals win out. >> analysts will come out with buy ratings on the fall woos he had so far. ebola is the one question everybody is getting calls about and trying to quantify and finding it difficult. as an anecdotal piece of information to take data from the lodging sector in dallas, which actually for the week to

sunday, was strong. revenue per available room was up 9.4% well above the urban national average. it's only one small indicator. it may be that we've got this ebola thing way out of proportion to the degree it will actually affect company profit flows moving forward. that's the point i'm trying to make. >> i think it's true. i think about what for me, i'm making all the business trips i was planning to make before. there might be marginal other people doing something slightly different. i would bet that's the case. >> do we run the risk of talking ourselves into a slowdown? >> temporarily. i tell people that if you look at bear markets and equities, they occur because there are recessions. the last six recessions are all because of higher energy costs. not lower energy costs. we've yet to have a cycle where we fundamentally slowed growth on longer term basis with lower rates or lower energy costs. for that reason, i don't think we are in bear market territory.

>> the silver linings of what's going on right now. thank you for weighing in here. >> thank you. up next, fears mounting that a wider spread of the ebola virus is on the way. what can be done to contain it? has the cdc goes it? we'll be joined live by one of the leading spokes people on the disease. [ bell rings ]

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stepped-up screenings at new york's jfk began last week. health officials at airports in washington, atlanta, newark, new jersey, chicago, will be taking temperatures of passengers coming from liberia, sierra

leone or guinea. 95% custom officials say land first at one of those airports. >> as you know, the federal government announced there is going to be a number of airports which o'hare is part of from a security standpoint. we have a good public health system in place. we had a series of discussions to making sure all the agencies and capacities, at the federal, state and city level are integrated and working. to make sure we prevent obviously any incidents here in the city of chicago as we all witnessed and texas. >> you have confidence in the cdc. >> yes. i do have confidence in the cdc. it's a very capable entity. worked with it as a former chief of staff. worked with it as mayor. i also have comforts in our tsa workers. i have confidence from our transportation system. a lot is focused on the airport appropriately.

we've got to make sure all aspects are up to stuff. >> speaking to carl earlier in the week. president obama ordered the government to monitor response to the ebola threats in a much more aggressive way. after several failures in containment it's worth asking is the virus winning? joining us now, dr. michael osterholm, director of research and policy at the university of oklahoma. what people want to know, and it's a difficult question to answer, but what they really want to know is how bad is this likely to get? is the media exaggerating what is happening here, infections of one hospital in one city so far with health care workers? >> first of all, what happened in the united states is a minor player in the big global picture of this infection. it is unfortunate what's

happened in dallas. the fact is, however, it has not spread through the community as we said it wouldn't. the concentration has to be on the health care workers. the other tale being missed is what's happening in west africa. that situation is becoming every day increasingly worse. it's becoming a situation seven or eight weeks ago we predicted would happen if we didn't respond. we have not responded as a global community. we talked about global response but have not responded. >> as far as we are concerned in this country, you don't believe from what you are saying it's going to spread to the general population. people are looking at the cdc and questioning whether the cdc is competent in this. in the beginning of the week they were blaming the hospital for protocol breaches. now we have one hospital in each state deal with it and rapid response crews crisscrossing the country. it looks to some people as if the cdc doesn't have this with all the planning it's done.

>> first of all, there have been mistakes made. we have to admit that and they've been made. we also learned from those mistakes as a public health community that. 's the important message. one of the things we have to do is fine-tune the message. i would suggest the mayor of chicago just now has a lot of confidence in his local community. i wouldn't have confidence in every community hospital in the chicago area or any community hospital in the country. it's not their job to be prepared to handle an ebola patient as a patient inhouse. they don't train routinely with this equipment. they don't have the qualified staff to do that. if we are going to successfully deal with this situation, remember, it's only a minimal number of cases that will show up in the united states. we need to have every medical facility prepared to see a patient. we don't know what emergency room or clinical office. once we have reason to believe they may have ebola, we should have a small number of regional treatment centers that are highly skilled in both treating

the patient's illness and safely protecting the workers. we can do that. i won't guarantee it in every community hospital. we will do that if we have this regional system set in place. the cdc swat team is a great idea. that's calling for the new york city fire department to help on a blaze in indianapolis. they won't arrive on the ground the first 24 to 36 hours, critical hours. we have to be ready to go from the first second a patient is suspected. >> i want to ask your medical opinion on the vulnerability of the 132 passengers on that frontier airlines flight with this woman from cleveland to dallas. not to mention the five other flies that exact plane took. how vulnerable are they to getting ebola? >> let's take a step back and look what happened to dallas in general. we are not out of the woods with

the direct contacts mr. duncan had in that apartment building. none have become infected yet. it's our hope in the next week they will be out of the risk of danger of infection. that was a situation where they were in contact early in his illness. they didn't become infected living in the same apartment. the health care workers that have become infected were with him as his illness progressed. patients become much more infectious as they become severely ill. i s would i say the passengers on that air flight were at risk? yes, but a low number. they had a higher risk of an adverse outcome getting in their car driving home from the airport than it would be having been on that plane. i can't say it's absolute, but a low risk situation. >> i want to pick up the point you made earlier about west africa and ask the question i asked earlier week which i make no apologies.

mark zuckerberg got a lot of headlines donating $25 million to the cdc foundation. if people want to donate do they donate here or to come back to the point you made to doctors without borders or whoever is leading the fight in west africa? do you need to contain it here or fight it on the streets in this country? >> first of all, let's make it clear. there is a big difference between donations and actual feet on the ground, boots on the ground doing the work. doctors without borders are the leading organization over there providing care. if any organization can win a second nobel prize, it should be them. let's remember. the president promised 3,000 troops on the ground seven weeks ago to set up hospital beds. to date, there are 300 on the ground. we have not as a country put up one hospital bed yet. three days ago the health workers of liberia went on strike. 80% of them do not have gloves,

gowns or masks. we can bring iphones and other electronic equipment from asia in this country and in weeks we can't get masks, gloves and gowns to west africa. be careful about giving and assuming that's going to mean the difference. we need action. i want to see those dollars making a difference. right now, they are not. >> is there any reason we should be afraid to fly domestically or internationally right now? >> no. i'm flying frequently right now. i don't have a fear at all. i would be more worried about somebody getting on the plane with influenza so therefore, everybody get a flu shot. do we want to be concerned about individuals coming into this country that may have ebola and we want to detect them early and make sure we don't have transmission, yes. i'm not going to tell somebody we are not going to have another dallas event occur. what we don't have to have is the kind of mistakes made in dallas that resulted in more

transmissi transmissions. i wouldn't stay away from an airplane today. >> good to see you, sir. >> thank you very much. >> the markets are climbing back here. actually toward positive territory. dow is only down 39 points at this hour, way off session lows. s&p 500 down 0.25%. it was uglier earlier at the open. we've seen wild swings here in the opening 1 1/2 hours of trading. much more on the volatile session and what's driving it after the break. opinions. there's no shortage in this world. who do you trust? whose analysis is accurate? how do you make sense of it all? a simple, unbiased stock score consolidated from the opinions of independent analysts...

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you do with comcast business. and often even more. it's reliable. just like kung pao fish. thank you, ping. reliably fast internet starts at $89.95 a month. comcast business. built for business. markets remain vulnerable, very dow gyrating all over the place. it's been clearly a rough week. here's dom. >> simon, we're watching at least some of the sectors bucking the downward trend. chesapeake energy is moving higher on news it would sell oil and gas in the marcelus and ute kah shale fields. to southwestern for about $5.4 billion. shares are up about 15% in the

trade. for southwestern energy it is lower after rising largely yesterday. down by about 6 and a half percent. the energy side a focus for investors specifically on deal news over here. >> thank you dom. let's also get a check on the bond market. hey rick. >> hey. class of '81 here. i'm class of '79, talking about floor traders. what was your sense of the trading activity in markets yesterday. >> a short covering blowoff top in the long and fixed income. >> so treasuries. >> the treasuries. very interesting. the open in in 5 years. >> 12 billion notional in five year that is the drop in open interest. it is large. not huge but large. >> and the d 16 euro dollars. >> five year. >> that was five year.

dropped 83,000 contracts. or 83 billion notional. >> so 83 billion notional. the 90 day rate not the currency. and why do we talk about drops in open interest on a wild session like yesterday where i use the word capitulation in treasuries. >> because it gives a clear -- >> so it is a liquidation. not oto say new people didn't come in but it was overwashed by the amount of people getting out hence the drop in open interest. overseas. >> last week they had the longest -- in the overseas i see leverage accounts trying to take leverage off. a perfect example of that is the greek situation. the greek temperature yen year hundred basis points. >> to be fair folks, in 2012 i

believe march it hit 37%. >> so it is going up and not near the hies. but the area where the leverage accounts generally have been exposed to take advantage of the carry is in the three year sector. >> greek. >> the greek three year. and that is up 200 basis points today. so that is remarkable. >> here is what everybody is asking and i'm almost ready to go on record considering we traded up to a yield of 215. in treasuries are we seeing what is referred to as a bull trap? a bull trap means you get the big rally pushing prices up and yields down and it sends a signal to be buying and looking for lower yields. is this a bull trap you think. >> i believe it is but yop i don't believe we're going to see a big run up in rates. generally the rates spike. they are not going to spike. the deleveraging in the equities and is going to keep rates here and keep the fed on its toes.

>> in the old days when we wanted to look at normalization and this is simple stuff. what we would look at is take a gdp level and looking at 2 and a half percent. take what inflation is, call it one and a half percent and that should be your ten year note yield. do you think we're going to any of these areas any time soon. >> i do not. >> i do not either. >> one final note. if you were trying to talk to someone who was nervous yesterday in the heat of emotion on the markets, what would you tell them specifically about treasuries and yields now? >> i think the yields, the yields have come back down to where we were before the bernanke speech may of last year before the concern. so i think these rates will stay this way for a little while but we're not going to see lower rates. >> thank you. rob mckenzie. thank you for taking the time. you look dapper without that trading jacket. >> simon hobbs it's all yours. >> thank you. we just went positive by the way

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another stomach churning day here on wall street. the dow is down about 66 points, way off session lows but also off the session highs. s&p briefly going positive here. it is lower by about .36. over the jackie. >> we got a build in crude of 8.9 billion barrels. higher in expectation of two million barrels and the prices are continuing to go lower here now. domestic crude at 81.04 down about 75 cents. [inaudible] in terms of what we're seeing with with brent right now trading around 83.70 after a four year low earlier t