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tv   Squawk Alley  CNBC  October 16, 2014 11:00am-12:01pm EDT

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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 this morning and driving the brent a
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little rebound of course is the fact that it's gotten beaten down a lot of traders with a lot of different opinions how to read this data. some saying they want to stay away from train trading at all because they are not sure which way it will go. but again we're breaking under 81 and 80.89. and the $80 level is a key technical level. if we see more selling, lots of people are saying mid 70s is where we could go next. opec continuing to lower its price, digging its heels in saying we're not going to cut production. we're going to take the lower prices into account. that's it for us here at the nymex. >> jackie, i think just the noise level and activity behind you is evident how important that $80 level is for the crude market. it is a wild day across the
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entire market. plenty of volatility but right now stocks have been whip sawed nearly into positive territory. the nasdaq touched correction territory earlier this morning but now down 24 points. s&p briefly touched positive and now down 9 points. the dow had been down 197, now it's down just 84. of course a lot of data to work with. a lot of earnings but it is those comments from one of the fed presents james bullered who talked about extending the bond buying program that did spur the markets a bit underneath those levels today. a loss for the dow would be six days in the row. it hasn't done that since august of last year. that would be quite a streak for that index. we're going to talk more about the markets. joining us henry blodget will be here all.
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and simon hobbs. and i know we'll be watching the european close very closely. john fort is with us also live outside the apple event in cupertino, california. and we want to stay with the markets. bob is on the floor to tell us what is going on in quite a volatile day. >> not as crazy as yesterday but a lot of movement and bullard did move things. said fed should consider delaying the end of the bond purchasing program. that's little surprise and moved the market, moves a lot of things, nine handles on the s&p and also the u.s. ten year. the yields moving up more aggressively on that. the ten year note now turned positive, the yield i mean. oil also rallied. briefly below 80 early in the morning prior to open about 7:10
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eastern but it too moved up as you can see it is still on the downside by about one percent. one interesting point is a lot of shale plays have now turned around today. we haven't seen this for a while and it's a good sign to see stability. eog has a terrible month. pioneer natural just it was positive but just move o down a few moments ago. hospitals a terrible day on ebola concerns yesterday. and they turned around. down 4 and 5 percent. the big names. turned around today but not back to where they were but nice to see signs of stability there as well. the banks, look, we are still hovering around 2% on the ten year yield. not great news. goldman sachs had an overall very good report but not much is moving the banks to the upside today as the net interest marge is going to have a lot of
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trouble. the internet retail. that is the weak group here. sales had a disappointing outlook for them. back to you. >> thanks bob. michelle caruso cabrera is also with us back at hq. but jeff, bob just showed had board of the financials. we heard from not only the ceo of goldman sachs but the president of blackstone. the fundamentals haven't changed, just the psychology they said. is that true? >> i think the fundamentals are changing a little bit. europe is on the cusp of its third recession in six years. maybe you could say that is more of the same since they haven't gotten that far away from it. but as the serious threat to global growth. the retail sales report was weaker and walmart had weaker things to say about the consumer as well. if we see global weakness begin
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to effect the u.s. that is not business as usual and we could see further downside. >> but the industrial production figures are very good to counter that. the philly fed has countered expectations. if they were to extend qe purchases beyond this month, what would that do for the market? and why would they be doing it? >> it might be a short-term shot in the arm. really we need nor action from the european central bank. but bully's a dub. he's not a voter. so i'd watch where oil is headed. that's been the real leading indicator here for the markets. >> and were you surprised to see bullard come out so quickly? the market is down but we're hardly heading for a collapse. to see that so quickly just shows how focused the fed is on this. >> policy makers are jumpy. this is a real shake in
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confidence. maybe not so much on the economy but more around policy makers. can they take the needed actions and will they? clearly in europe they have shaken expectations from two years ago where draghi could do no wrong. >> and remember we got fresh inflation data which shows five countries in the euro zone in deflati deflation. which means they are showing prices lower compared to a year ago. not disinflation. but overall numbers they are in the wrong direction. a five year low for overall inflation and the big declines. and when you look at the difference between german yields and people are very confident the germans will always be able to pay their debts. people seek safety there. but when you look at italian, spanish, portuguese yields they have been rising.
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the market is starting to differentiate between different credit qualities in a way they had ignored because they believed mario draghi would step in and do something and they are not so sure she has the political ability to do that at this point. >> this is the biggest risk. remember the euro zone has not improved its debt situation. debt to gdp in europe has gotten worse. 2% more than last year. 94% debt to gdp. so the problems are getting worse and deflation makes the problem terrible. >> but there was this idea that the u.s. was figuratively going to be passing the baton to europe. saying we're done here but the economy is recovered but we understand that the stimulus is not even close to being over in europe, in fact it is just beginning. >> no this fear kayla is that it is never going to begin. that is what's happening right now that the germans are going to tell draghi, no you are not
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going to be able to print money like the united states did. that is the concern. it hasn't begun yet. >> well right now certainly we are off the lows of the session but europe and the u.s. continue to be in focus. thanks for joining us. >> okay. netflix has had a huge mover this morning. down 20% after cyber growth came in just below analyst expectations. >> reid hastings defending netfl netflix add. >> we added 3 million subscribers in the quarter. pretty tremendous. a million a month. we're expecting to add 4 million in q 4. so the big picture of people moving to internet tv, it's as
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as strong as as ever and you heard that with great and interesting news from hbo. >> hastings saying hbo's move validates the potential saying he is not -- >> both services, will probably both do really well. >> but if people have to choose between the two do you think they will choose hbo over netflix? >> no way. they are going to choose netflix. >> in the meantime hasings says he'll expand overseas as fast as we can. pointing to national markets as a sign of the huge potential. >> hastings also addressed investment concerns about rising costs sending free cash flow plummeting. >> it can look scary and that's why we put it in there. we want to make sure everyone understand that when we were in licensed content we pay as we go. once you start producing you are paying up front so you use more
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cash. >> hastings noted had company's debt to equity is low and that they have plenty of cash to finance original programming. more of the interview on cn cnbc.com. >> thanks julia. we're still keeping our eye on the markets. volatility reigning supreme today. right now markets aren't necessarily positive. not off the lows of the session either. down about half a percent for all the major averages and less than 30 minute from the european close, which could be a big catalyst how we end the day. plus in just under 2 hours apple is set to unveil a new line of ipads, maybe something else. all at an event in cupertino. where we're live on the ground with the latest. so i can reach ally bank 24/7, but there are no branches?
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dow transports currently trading up just under 1%, 73 points higher to 8010. the best performing stock in the index, avis. increased stock buy back. and that's causing trading higher. and the hertz is up more than 4% in sympathy. back to you.
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>> the markets a lot of red still on the screen. dow down 56 at the moment. a lot of people telling me clearly worries over ebola are a big part of the happenings this week. and the airlines especially. phil is live at dallas fort worth. a lot of questions for a lot of people here. >> and those questions are at the root of what we're seeing when we talk with people getting on frontier flights. listen to these passengers who came off a frontier flight from denver. we asked how you feel about flying following this second reported incident with ebola. and here is what they had to say about the frustration over the lack of information. >> i hope we'll get the powers that be pay attention to this and be sure we're doing the right thing to cake care of this. >> i don't think we have a
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handle on it. >> how can they sufficiently regulate something like this. >> in short they do not believe that the cdc has a handle on this. what about the plane involved in this incident? flight 1143 from cleveland to dallas? it was ferried to the head quarters for frontier. they have taken it out of service and they are going to replace the seat covers as well as the carpet in the immediate area where the healthcare worker was sitting. the worker laters diagnosed with ebola. and they are then going to also be putting the crew on paid leave. it will be a while before they put the plane back in service. as for the passengers on the flight with the healthcare worker, many are here in the dallas area and as you can imagine they are frustrated by the lack of information from the cdc. >> was he behind me? i at this point would like to hear back. i called. i did what i was told to do. >> quickly we want to shift gaers and look at shares of
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delta which have been moving higher today following the company reporting third quarter earnings that beat the street by 2 cents. crow richard anderson was asked about the impact of ebola on future bookings. >> we monitor on a daily basis and have not seen any changes in the booking trends. >> reporter: in addition, delta during the conference call, the question came up whether or not delta crews have asked to get off of those flights that go from the u.s. to west africa? they have a few flights that go to that part of the world. and delta was emphatic saying look we've had no crew saying take us off those flights. it's been normal business for them on those routes. back to you. >> thanks so much for that phil with the latest on the airlines. meanwhile turning our attention to cupertino and apple expected
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to unveil the next generation of the ipda and the ipad mini. apple one of the biggest mooufrs on the market from a volume perpetrative and right now down more than three quarters of one percent. john fort, we're not seeing much of a bid under apple going into the event but do you expect it to be a block buster of sorts given how many different products are possibly behind the curtain? >> look at the ipad itself in the quarter. but it's been pretty flat overall year over year. not the big draw that the iphone is. a little bit of a leak yesterday. apparently in the documentation for ios 8.1 that the air 2 and
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the mini 3 are expected to come out. but we don't know what is coming out with that perhaps new software applications. keep in mind holiday season last year this made up $11.5 billion in sales. up 7% from the year before. so potential there. also expecting imac updates. pcs have been doing well. we saw that in intel earnings this week. yosemite, is expected to see its update today. that ties in more closely with ios devices so perhaps the big boon in i iphone could benefit the mac this season. and finally apple pay and we're expecting to hear more from retailers when they will launch that sthat service that allows pay by touch and by phone using the actual device to complete the payment. so all of that on deck here. but particular attention to these ipads that you expect to
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have touch id. some of the payment capability. might cause iphone 6 buyers to want to upgrade ipads as well. >> are people unexcited about what's going to be announced? products would be beautiful and they're excited for the next generation. is there anything that could be truly exciting and say wow we're not expecting that? >> we got to be careful about excitement because when the original ipad came out people were like oh it's just a bigger ipod touch. i would say some wind is out of the sails because of that leak that apple seems to have unintentionally done yesterday but i see some potential here with touch id in the ipad. if you get a significant bump in ipad sales versus what people have been expecting given those have been pretty flat, well then in january when the q 4 holiday quarter results come out there
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could be upside surprise there. >> and what could be really interesting is apple pay. what are you hearing on the launch date? i thought it was going to be from what we were being told the beginning of next month. some have suggested it could be this saturday. >> reporter: what i expect to see is just different retailers having a slightly different rollout depending on how many different locations they are trying to roll that out too and where they are in staffing training. i'm expecting to hear something about the couple retailers and what their plans are. i wouldn't expect to see it go live across all retailers all at once but apple will say we're ready to roll out the capability but here is when you can expect these specific retailers to be ready in store, which are a key part of the technology. >> i don't know we'll stay tuned. i know you will bring us the latest when you have it. from cupertino. >> the markets still in red but
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back from earlier losses. clearly the volatility is still being maintained. not as bad as yesterday. europe closes about 9 minutes time it's been for many front and center of the action. potentially the origin of so much floor selling. the look at the impact on the u.s. and europe when come back. this is a burrito made with chocolate, soybeans, and apricots. what kind of chef comes up with this? a chef working with ibm watson, on the cloud. ingredients are just data. watson turns big data into new ideas. and not just for food. watson is working with doctors and bankers to help transform their industries. today there's a new way to work. and it's made with ibm.
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volatility reigns this morning, the s&p now in positive territory up nearly one point. the nasdaq was moveding the other way. briefly dipped but the nasdaq is now hovering near the flat line. what is the latest. >> we sort of have a tail of two different asset classes within the nasdaq. it is basically the big caps that continue to be the drag here. they are under performing, led my netflix and ebay on disappointing earnings results and subsequent downgrades wruit result of that.
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a couple of stocks on the upgrades. a few big gaps denying the drag. buy due. fire eye and alumina. we are seeing movements again with the big caps. that is what's moving frds and if you look through at the small caps t russell 2,000, the s&p small cap 600 you are seeing names across the board and analysts are looking at that a domestic play here. if the u.s. is going to hold up in the global economy. small caps have a lot more domestic exposure. they are bottoming first it appears. they were the first to be lower. same story with chips stocks today. chips very strong. bounced back. following through on yesterday's
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reversal. so we'll see whether the chips can lead the rest of tech here. back to you. >> russell of course is often the leader of both the rally and the downturn. we'll see if that continues to hold. thanks for update. let's send it to simon hobbs here at post nine as we're nearing the european close with a mixed map simon. >> this is a much better close than it looks on the surface. because it was so much worse than europe say about five hours ago. we started the session in europe with bad news in inflation which michelle mentioned that across the european union you have 8 nations on negative territory on deflation. and spain was down about 3%. so we've come back was a of w t what's happened here. it is worth mentioning the european damage is much greater. look at broad market across europe. the stock 600 down 11% since the
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highs we had and that is an indication that we are actually now in -- in correction territory. over a 10% move there. today on the session it was the banks that led much of the session. though we've had a slight change on that. we are of course heading towards the stress test. the asset quality review from the, ecb. more importantly a lot of guys are exposed to soverei ed td td. we know people are stampeding into the center and germany and france and driving yields lower but the yields are doing the opposite at the edge and the eye of the storm remains greece. look at the greek ten year at the moment. 8.9%. you can see the pummelling down of the price the yield moving higher. last night the european central bank governing council said if you stay within the bailout we'll give the banks more money. there will be a lifeline. the politicians in greece want
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to exit early so they can hopefully keep the coalition going and prevent the far left radicals from winning any snap election. in spain actually they had a problem auctioning some of their debt. they didn't get to their target level. you have a slight movement there on the spanish yields but it is not big. around the rest of europe, italy for example, there are questions to the direction which we'll now have move with the ecb in terms of what it's physically able to follow through with. >> and of course the stress tests coming out just a couple days before the next fed y and interesting week. thanks simon. we are going to be all over the markets. off the lows still in the red right now, trading mixed. the s&p up by just a fraction of a point. dow meanwhile still in the red by 20. nasdaq by five. a lot more on today's move in a moment. plus a form eer dictator is takg on act vision and former mayor
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back welcome back to "squawk alley." >> we're just getting news that nina pham, the first u.s. healthcare worker to be infected with ebola may be transferred to nih today. that coming from a federal
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government official with direct knowledge of the plans but warning that could be fluid. we should know more later today. the plans are currently evolving but we are hearing that nina pham, the first nurse treated in dallas for ebola may be transferred to the nih later today. >> thanks mega. okay a quick check on the markets. it is interesting that we have actually erased the losses for the session overall. that is a pattern that will encourage a lot of people. through yesterday you saw heavy selloff by heavy rebound and that is a mini version of the last few hours that would suggest to some that the selling has abated. >> bullard flips to dovish and that is huge. clearly there is some news underpinning this strong swift move we've seen this morning. new ipads, imacs and other
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things like apple pay are just a few of the things to be announced in the next few hours. weighing innen is guy kawasaki. guy, we'll start with you. just a little more than a month ago you told us apple wants to make consumers shell out all of their new money for the new iphone with just a little left over for food and clothing. do they have any left for the new ipad? >> let's hope so. you have to admire the genius of apple of splitting these two things into an event. the iphone and then the ipad event. you have to admire apple for that. >> we admire apple for a lot of things. guy, is there any chance as we go forward and get new apps for the tablets and ipads that we will have some something that can replace a keyboard? which is i think what keeps a lot of people who would like to simply carry an ipad from doing
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that. you have to have a laptop. it's easier to have it all in one unit. are there any apps that will help with that. >> there are more keyboards and better keyboards and now you can integrate and select your own kind of keyboard for your ios device. i think a lot of it is just getting acclimated to how these things work on an ios device or any smart device. i think it is a matter of just learning to do it. i don't think that is a make or break kind of issue. >> are you expecting anything out of apple that nobody else is expecting? like a big surprise? >> well you always hope for that. right? so the logic tells you, the street tells you it is going to be a better ipad. it is going to be a better imac. apple pay is very exciting. but then there is the always famous phrase, you know, "one more thing" and that is what everybody is holding their breathe for. and not just consumers but all
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the competitors of apple. there are people from korea and china who are watching with fingers crossed hoping apple doesn't do something to totally toast their market too. >> john fort, we have frequently discussed one of the problems with the ipad is the fact that the replacement cycle is longer than for a phone. duke touch id and the introduction of apple pay will be enough to get consumers to upgrade to the latest model? >> i think touch id is key. apple pay i'm not so sure about. i'm not sure you are going to bring especially one of the larger tablets and wave it in front of the register when shopping. but with the ipad in particular i think what we've sooempb the last year, year and a half is consumers are tending to use it more like a pc than an iphone and because of the engagement level on the ipad and the replacement cycle, i think you have to wonder what is it that apple can do to make it better
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productivitiwise. i was trying to get an audio file from a colleague into the ipad so i could listen to it and not just have to stream and it that's way harder than it could be if apple decided to tackle some of these issues. so do they make the ipad more maclike or more iphone like even though causes a productivity problem. i this think we might see signals for the vision for the next year which is going to be key for growth. >> guy, can i ask you, we also have apple reporting its figures monday, where do you stand on the buy backs. carl icahn has approached cook again saying there could be a massive increase in the buyback of pl and it should use its cash for that. is there potentially a an acquisition that could actually move the dial for apple and be as big as iphone sales at $150
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billion? >> it's hard to imagine who apple could buy that would move the needle for apple. maybe it could buy a large carrier to totally control the end to end experience of a phone and tablet. but it is hard to imagine spending billions and billions of dollars. who would you buy? google? that's out of the question. >> what about paypal? >> not a lot of choices. >> what about paypal? would that fit if it wanted to be king of payments? >> well i don't think they could buy it. but never say never. one thing i learned working for apple and buying apple products is you just never know. and sometimes you just wake up in the morning and say oh my god, who would have thought of that? and with hindsight it's genius. so never say never when it comes to apple. and i was chief evangelist there and i know better than most people, wow, that company is capable of doing almost anything its sets its mind too.
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>> quickly before we let you -- sorry john. >> i think you have to watch what's happening with gt advance right now, the company working on sapphire glass that's filed for bankruptcy. apple has been known to use cash to shore up supply chains. maybe they need to invest that money a little differently or maybe more aggressively given that you see it doesn't always work out. if they want sapphire supplied rather than just fund somebody they need to make their own moves a little more aggressively. >> thanks john. we'll see you later this hour. guy kawasaki, as always a pleasure. >> thank you. >> rudy juligiuliani heading to court today heading activision against the disgraced panamanian
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dictator whose suing iing in fo use in the hit game for con soels. >> i'm going to tell the court that noriega has no right to sue because he's become a historical figure. he doesn't own his own history anymore than any other prominent historical fig does. if you are included in a biography or a movie, if you are included in a video game you do not have a right of publicity to sue to recover. otherwise there would be thousands and thousands of these lawsuits. if noriega were to win, bin laden's heirs could sue zero dark 30 and recover for him being included. >> interesting because these video games have become so
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realistic you could almost argue it is a portrayal in real life of them. and activision -- he's included in it, shouldn't he get a peace of the pie is the argument. >> well so are thousands of other historical figures included in it. a movie was done about me called rudy, starring james woods. shouldn't i have gotten a piece of the pie? i couldn't because i'm a historical figure. i don't have a right to recover for being a historical figure. now if i had created my fame based on my art. if i had created my fame based on my artistic achievements that might be a different matter. but where i become a piece of history, if i have to -- if i as an author have to pay everyone person whose a piece of history about including them this a book i couldn't write a book. it would cost too much money. it would become impossible. plus by becoming a part of
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history you waive that right of publicity. now he can sue. he can sue for defamation. he has that right. he could see for defamation. now he'd have a hard time proving defamation since he kills so many people, since he beheaded his best friend. since he was a dictator for eight years. he would have a hard time recover but he could sue for that. >> the argument you made about writing and creating your own history is one the wolf of wall street has used. he wrote the book and wrote his memories wory memoirs so he deso profit off that. but what do you think of his case succeeding? >> you never predict -- you never predict a lawsuit. you never predict ab outcome but there is a california supreme court case that has already
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decided this. it was brought by the nephew of rudolph value value tino. and the court held they could not recover because valentino was a historical figure and they had a right to do a biography, a movie, a fictionalized move about him because he was a historical figure. so this case has already been decided bety supreme court of california. and if the judge follows that ruling then we should prevail. >> mr. mayor, let me change the subject if i may and ask you about where we are with the outbreak of ebola. >> sure. >> there are people in public office having to plan. they are concerned about what they should do. if you were still mayor of new york, what would you be doing? do you feel that the cdc has not got this on behalf of the country?
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>> the cdc, unfortunately the information the president gave and the cdc gave, gave people a great deal of confidence that this is totally under control. turns out it is not totally under control. the only thing you can do now is bring in experts and review all the protocols and make sure they are all being followed and if there are some that aren't being followed that they are added to the list. because it is quite obvious that the control we thought we had, we didn't have. so the only thing you can do now is go back and try to figure out what else can we add to this, including screening people much more carefully who come into the united states. >> would you be denying access? speaker boehner is getting perhaps more aggressive on travel policy. do you think we should restrict people from certain countries to a greater extent? >> i think we certainly should
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monitor them much more carefully. i know people get nervous about profiling but this is an area in which profiling is quite sensible, meaning this is coming from certain parts of the world and not others. now whether you exclude them or set up much more intense monitoring, i would probably opt for more intense monitoring. >> thank you for joining us. >> thank you. call for duty is a great work of art. >> i know. >> and at one point i failed to mention, video games are treated the same as books, movies and other productions. for purposes of the first amendment. justice scalia decided that several years ago in the brown decision. >> good to have you on the show sir, thank you. >> thank you. >> now let's get to the cme group. rick santelli is standing by. >> good morning kayla. well, i always like when the market is just on cue with the santelli exchange. look up. what do you see in fives.
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136, 137. tens you see 215. the interday charts. the right side, the levels i just talked about. hugely significant. why? let's look. yesterday we reached 110 yield on the low yield during all the aggressive activity in the morning. a 186 in the ten year. and when we come towards the end of the session, you remember the big bounce in equity, still in negative territory but you basically saw the high yields reflected in the last half hour of trade. so for five years the high yield is 136. they kopd a 134 settlement. for the ten year we traded to 215 and change so 215 or 216. i picked 215. we settled at 214. no nomo or --. the bottom in yields top in price and treasuries based on my experience is how you see things with momentum.
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the five year hook ins with regard to yield curve trades and it is an important issue to note that we saw the big drop in open interest. it continues to point to liquidation. so if that is true and momentum starts to dissipate you have to proceed as if it's boull trap. in simple english, that means in close proximity, and today is the day after, if you start to usurp the levels, which we're doing as we speak, that could turn the market. and remember if it turns the market here it will be super important for the weekly settlement. those are levels to watch. my call in the early stages of the information we have you want to be very careful getting too aggressive on the long side again for the treasury complex. >> thank you. the markets meanwhile remain excessively volatile. i'm sure i'm just watched the dow drop about 60 points in 30 seconds.
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more to dom with more. >> this is typical for the month of october so far. by want to narrow to this week in particular. so far this week the dow is down 2.5%. 16,500 at one point to others. so let's day by day. monday from peak to trough the dow dropped and rose in a rage of 292. well over a percent. tuesday as well. 190 points separating the low from the high. wednesday, just yesterday that was when it was really amazing. 458 points and thursday, 202. this is 226 now that the market has gone where it is. and we shouldn't expect the same at least for today. >> back at headquarters, up next
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on concerns over ebola have been a big part of the week's selloff but how worried should you really be? we'll ask the form chief medical officer for the department of homeland skurtd ecurity we needed 30 new hires for our call center. i'm spending too much time hiring and not enough time in my kitchen. [ female announcer ] need to hire fast? go to ziprecruiter.com and post your job to over 30 of the web's leading job boards with a single click; then simply select the best candidates from one easy to review list. you put up one post and the next day you have all these candidates. makes my job a lot easier. [ female announcer ] over 100,000 businesses have already used zip recruiter and now you can use zip recruiter for free at a special site for tv viewers; go to ziprecruiter.com/offer2.
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. coming up on the half, wall street's biggest bull is now having second thoughts. we're going talk to netflix. and is the business as gloomy as
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suggests? and the latest on ebola. and the big turn around we've seen in stocks. have we seen the worst on the correction or not. see you in about ten minutes time. meanwhile growing concerns over lapses in ebola containment here in the u.s. after two healthcare workers in dallas have been diagnosed with the disease. a nurse who works at texas health presbyterian which has been the epicenter of later for ebola concerns spoke to us this morning and here is what she had to say. >> we were unprepared in the sense we did not know what to do with his lab specimens. they were initially mishandled and that is what the lab technician told me. and it was choaotic. our inefficiency disease
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department was contacted to ask what is the protocol. and the answer was we don't know we're going to have to call you back. >> joining us is dr. alexander garza. dr., it's good to have you on our program. >> thank you. >> as a medical professional, when you encounter an unknown, what is the policy? because ebola hadn't come to the united states before it came to dallas. and you could argue as well that people just didn't know how to handle it or even what it was. what do you believe? >> well i think it is a combination of things. first off the initial handling of mr. duncan, clearly they missed him as a case of ebola. i think that's been pretty well established. but your next question of how do you take care of patients like this that have never presented to your facility before is a very fair question. and i think it's hard to fault
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institutions that were not given a proper training, a proper equipment and really just did not have the right set up to take care of a highly infectious patient such as mr. duncan. >> we have the new enhanced security checks now at the major international airport likes jfk coming into the country. if i am someone who thinks i'm infected with ebola and i want to get out of west africa or want to get into u.s. medical care i'm going to lie on your survey and i'm going to take ibuprofen to lower my temperature. will you be able to find me with those checks sh. >> as you have pointed out no system is fail proof. clearly a people can be deceptive and evasive as other things like drug trafficking and that exists every day. so clearly you can be deceptive on the forms. clearly you can take medications
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to mask a fever. no system is foolproof. it is the layering of the systems that we try to fill all the holes whether interviewing patients in west africa, skre screening them here, so on and so forth. >> as the disease has evolved t cdc has changed its tact. we're awaiting a hearing where cdc officials will be questioned on capitol hilt hill. what would you like to hear from them today? >> i think what people are expecting to hear is they have investigated the failures of the system. and they have tried to address those. so moving forward people have confidence in the public health system. because that is really what is eroding right now is confidence that our governmental officials, that the agencies really have the best plan forward to protect the american people. >> dr. garza, we appreciate your time this morning. >> thank you. >> dr. alexander garza of
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st. louis university. when we come back, a house panel set to begin on ebola, the director of the cdc and other obama administration officials will testify on capitol hill momentarily and "squawk alley" will be right back. an unprecedented program arting busithat partners businesses with universities across the state. for better access to talent, cutting edge research, and state of the art facilities. and you pay no taxes for ten years. from biotech in brooklyn, to next gen energy in binghamton, to manufacturing in buffalo... startup-ny has new businesses popping up across the state. see how startup-ny can help your business grow at startup.ny.gov
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we're still gyrating all over the place on the markets. nothing like yesterday. still down 6 on the dow. henry, before we go, is netflix a buying opportunity? saying we didn't get subscriber growth we wanted because we put the price up by a dollar. >> i think netflix is in a wonderful position for the shift to internet television over the next few years. a great product. stock is still expensive. if the european and international operations work long-term you are find. i think what everybody is glossed over is they may be hitting a the market penetration point in the u.s. where the growth significantly slows. 37 million households now. so it wouldn't surprise me if that was part of the slow. >> in the meantime a lot of talk
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about ebay and the revenue cut. it does seem the stump of the ebay company is going to be slow growth. >> many years they effectively driftedsi eed sideways. amazon blew past. and it's going to be hard to accelerate that. >> thanks for joining us. over to post 9 where scott is with the half. all right thanks very much. welcome to the halftime show from post nine. today's starting lineup. joe terranova. john najarian, pete najarian. and here is where we stand right now. the dow trying to avoid its sixth straight losing

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