of the hour. of course, "power lunch" will have that for you live. let's do final trades. >> low interest rates. >> hewlett-packard, quality names go higher. >> alibaba lorng, traded great through the liquidation. >> "power" has that apple event bebeginning now. a very big hour ahead. another volatile session. the dow touching an eight-month low but making a big comeback. >> you know, meanwhile, ty, apple is kicking off its special event right now in cupertino, california. we're expecting a new ipad. we have all the breaking news as it happens. first, how volatile has this day been today? well, the best way to see it really look at the chart. talk about peaks and valleys today. right now, the dow jones industrial average has turned negative just slightly after moving into the green a short while ago. the s&p is in the green by better than 0.1% to 1864.77.

the nasdaq touch and go early on. briefly dipping below into correction territory. but it's now in the green, up better than a full point. in terms of the long bond yield on the ten-year note, treasuries and commodities, they are also on the move in today's trading session. after moving sub-2% in yesterday's trading day, the ten-year note. the yield is now 2.171%. in terms of oil, west texas intermediate is on the upside by almost 2% on the trading session. and gold is near a one-month high, although it is in negative territory. so we have a lot ahead for you in this hour. we have every angle covered. bob pisani is going to join me here at the nyse momentarily. bertha coombs is at the nasdaq. rick santelli's at the cme. and skrjackie deangelis is over the nymex. >> that's right, a very busy hour ahead. it was just one day ago that we hit the bottom in the dow and was off more than 450 points.

europe fueling the fears in the markets. seema mody is in london. michelle caruso-cabrera tracking those soaring yields there. the other "e" fueling fears, it is hard to kwaupt quantify, ands ebola. meg terrell is on capitol hill. the hearings under way on how to stop the virus. phil lebeau at the dallas-ft. worth airport on what airlines are doing, sue, to ease travel fears. >> we're watching apple this hour. of course, it's a big mover most of the time on these events. the tech giant kicking off its special event right now. new ipads expected. jon fortt with all the breaking news as the headlines cross. first to bob pisani with me on the floor of the nyse. the volatility was back big time. however, the tone of the market feels much better today. >> we did not have the big, sloppy selling that we saw at the open in the etfs.

people were getting out yesterday. we were down this morning but it was very orderly. the s&p was down -- put it up -- it was down 27 points at one point. rather significant decline. now you can see the s&p has gone positive. it went briefly positive a few hours ago. but we're now in positive territory again with the s&p up 5 points right now. what you want to do is look at some of the stuff that's turned around. the ten-year yield, we were below 2% earlier in the day. boom, we just kind of moved up all throughout the morning. take a look at the yield there. you can see it at 2.17%. oil was below $80. oil was at $79 around 7:00, sue, and the s&p futures were down on that. you can see we've had a nice aggressive move up since then. now at $84. and on that we've seen shale plays and oil stocks move around. eogs, u.s. silica. transports went positive. the russell went positive. ebay, a bit of a disappointment. the regional banks, sue, we are up here as interest rates have

finally moved up, but very modest moves here. there's no big rally going on. >> we'll see if that holds. >> the european banks, very ugly day. >> absolutely. michelle will talk more about that in just a moment. see you in a bit. the nasdaq dipping briefly below the correction level. bertha coombs following big movers over there. hi, bertha. >> with that dip, we were down nearly 2%. if we finish in positive territory as we are right now with the nasdaq composite, robert hung, one of our quant fellas, said this would be the biggest back in 2009 when markets were very volatile. big caps have been the drag. apple now starting to get a little more positive. netflix continuing to be down in the dumps after the disappointing subscriber numbers. ebay with disappointing numbers as well. it's been the chip stocks that have been holding things up. that's the strongest performer. as we look at them, they have been among the most volatile performers quarter to date. some of the biggest losers, and

today we're seeing folks pile in and starting to do a little bit of bargain hunting there. and in the small caps as well, the energy sector has been particular lly strong. we've seen bargain hunting there. i was talking to art hogan. isz in some sense folks are doing bottom feeding in the russell because they're looking at small caps and they're saying these have domestic exposure. i want to be more domestically exposed. some of them have also had some huge, huge declines since the beginning of the quarter. come back out to the wall. the russell has really been the comeback story. it is on pace now for its first positive week in about six or seven weeks. it's a little bit off coming back up here. so watch these small caps. they have been so out of favor. but today it appears, sue and ty, that it's the first -- the last that shall be first. back to you. >> all right. thank you very much. appreciate it. all right. to oil. west texas intermediate fell

below $80 earlier. bob mentioned that, brent sinking to four-year lows. jackie deangelis talking to all the traders who have to really make the market in that. she's at the nymex. hi, jackie. >> reporter: good afternoon, sue. actually, it's amazing, we have turned a corner here in terms of the crude price. almost a $3 rally just moments ago on our hands here. very aggressive action in the crude pits today. and what's interesting to me, jeff grossman, one of the traders here, we got a 9 million barrel build today showing that there is a lot of supply in the market. so why is this not a bearish indicator for the oil pits? why are we moving higher now? >> keep in mind this was all that was expected already. so when the most bearish news that could have come out comes out, suddenly now the market has nowhere to go but back up. that's sort of what happens when a market is overdone in one direction. it has no other choice. >> reporter: one last question really quick, we are seeing the wti price and brent price come close. that spread tightening close to parity. what happens if wti goes

overbrand? >> nothing out of the ordinary. we're going to be exporting soon anyway. it's not a surprise to me here. so again, we're talking about markets that have been trending this way. it's -- remember, many years ago, it was the other way around. so we're just now getting back to the parity level. we'll see. there will be a battle at parity soon. >> reporter: we're following it all. for now, guys, back to you. >> jackie, thank you very much. to jon fortt at an apple product event, tim cook has taken the stage. jon? >> reporter: that's right, tyler. and the most important thing out of this event so far is an update on the iphone, tyler. tim cook taking the stage talking about the big retail moment that the debut of the iphone 6 and 6 plus were says. and this isn't surprising, that it's the fastest selling iphone ever. but take this quote. he says buy a lot, a whole lot. that was pointing forward to the launch in china which is coming up on all three major carriers, he says. it's ready for 4g. so he's excited about that. he's beginning to talk about

apple pay as well. that iphone update, important, of course, because that's the major both sales and profit driver for apple thus far. the stock ticked up slightly. i saw when he made that announcement, we'll see where it goes from here. he's beginning to talk about apple pay, and we're looking for some kind of a launch date on that event coming up. he's just said apparently that 500 new banks are supporting apple pay, which gives an indication that they're looking for a broad-based launch, tyler. >> i'll take it back, jon. thank you. we'll be coming back to you as news warrants. we should note apple is very close to the unchanged level now as mr. cook talks more about the new product launch. over to europe where there was a bit of a recovery at the close, but the ftse, the cac and the dax entering correction territory. seema mody joins us from london and michelle caruso-cabrera is looking at the soari inin ining yields. seema? >> that's right. europe continues to be a major

focal point for investors. part of that due to the weak data that continues to pour out of the eurozone. today's data on inflation coming in at 0.4%, the lowest level since september of 2009. so that's a five-year low. on top of that, five members of the eurozone, greece, spain, italy, slovenia and slovakia seeing a decline in consumer prices over the past 12 months. so those concerns around europe entering a japanese-style deflationary trap, that's becoming a reality. now, we have seen a massive move of the european markets over the past couple of weeks. germany, which is supposed to be the most robust economy in the eurozone trading in connection territory. that's down more than 10% from repeat highs. and if europe didn't have enough to worry about, take a look at greece, down over 33% from its recent highs, putting it in bear market territory. sue and tyler? >> all right, seema, thank you very much. so you think yields on the u.s. ten-year treasury are low when they dip below 2% yesterday. check out the german bund.

elsewhere in europe's weaker economies, they're soaring. michelle caruso-cabrera is here with more. >> hi, tyler. the key is that divergence. look at the one-year chart of the ten-year yield for germany. you can see a very steady decline throughout the year and to the numbers that you were talking about today. take a look at a one-year chart of italian ten-year yields as well. and you're going to see a very similar pattern except look to the right. a divergence there. let's look at the one-week, and it really shows the difference that's been happening. the one-week chart for the german ten-year, pretty steady. with the recovery that we've seen in the markets, we're seeing a slight improvement or a rise in the ten-year bund, but take a look at the italian ten-year as well, and you're going to see that it has risen sharply in terms of the yield in just the last 24 hours. we have not seen that kind of divergence for a long time. it's really significant because it's telling you that market participants are starting to really take a look at different economies there and saying we're worried increasingly about the

weaker economies like italy, like portugal, like spain, particularly greece, whether or not they're going to be able to pay back their debts versus stronger economies, even though germany has been weakening, it's still considered the strongest economy there. the one chart that i think we're going to see more and more of and our colleagues over at cnbc europe use this one a lot, they chart the spread between whatever the german yield is and whatever the country they want to look at. they subtract the german yield from, say, the italian yield, and then you can see the spread. that's what we've done here. you can see the spreads are widening. that's the vernacular we'll have to get familiar with if we continue to see this trend and if people are still concerned that marrou draghi, the ecb and the governments aren't doing enough to improve their economies. back to you. >> thank you very much. dominic chu now, "market flash." >> energy is the best performing sector so far today as oil prices try to stabilize. it's up about 1.5% for west texas intermediate, leading the way higher for the sector. chesapeake on news it's selling

some of its assets. also, anadarko. tyler, overall, the oil sector certainly ones to watch. they do move a lot more than the overall markets. especially these days. back to you. >> thank you very much. back to cupertino now and jon fortt. jon? >> reporter: a couple of details here, tyler. first of all, apple pay, that will launch on monday. apple has said apple pay, the payment service, launches on monday. also, an update on the apple watch. watch kit is a way for developers to make apps for the apple watch. that will roll out next month. that is november. tim cook saying the watch still expected in early 2015. he says every day i look forward to that day. so this is an important detail because developers now have a couple of months at least to figure out what kind of software they'll want to build for this watch. apple is usually announcing platforms like this in the summertime. but for the apple watch, they are rolling this out in november, giving developers their first chance to get

creative and really figure out what kind of apps to deliver for that in november. and again, apple pay coming on monday, tyler. >> all right, jon, i'll take it back. and apple is positive right now by 17 cents. the market rallying back in a big way from a big selloff earlier this morning. the dow is positive by 16 points on the trading session. so is this the time to buy stocks? joining me here on the floor of the nyse is paul pagnotto. and also neil hennessey joins us. he's chief investment officer of the hennessey funds. paul, welcome to "power lunch." nice to have you here. >> thank you. great to be back. >> you say you've been painstakingly patient trying to get entry points into this market. you got one yesterday, i think. >> yes, we did. you know, it's been two years since the market's had a correction like this. and we have had 30% to 40% in cash for our clients' equity allocation. so now, granted, there's some real issues going on here, the biggest one is the fed stopping

the quantitative easing. that's really significant. and it's just going to take time for the market to get their legs underneath them. but you also have europe who's going to start a trillion-dollar quantitative program which will help. and europe is china's biggest trading partner. >> absolutely. >> that will also help asia. >> you know, neil, do you view what happened yesterday as, you know, either forced liquidation or something like that, or do you view it as a sea change in the market's direction? >> sue, i don't know what's changed in corporate america since 2, 2 1/2 weeks ago. productivity is up. earnings are up. cash is up. the market has reasonable p.e., some price to sales. i mean, if you look at it, nothing's really changed. and if i take the market, corporate america in the u.s. and compare it, say, to the dow jones, right now the dow jones 30 will give you 2.5% yield for the next ten years if not more versus a two-year treasury at 2%

or less. it's a no-brainer from the standpoint of if you want to be in the market and you haven't been in the market, this is a time to get in the market. and in the mutual fund world that ideally and at hennessey funds, between money market funds and fixed-income bond funds, there's $6.1 trillion sitting there earning almost nothing. >> so paul, very quickly, where would you put cash to work? what sectors do you like? >> we like areas like consumer growth staples. consumers' incomes are rising. with gasoline prices dropping like they are, that's an immediate tax cut. you have more discretionary this being to spend. so consumer growth staples and also the united states is a global innovator in technology. i know there's a lot of talk about apple going on right now. we like the technology space here. earnings revisions have come down. we think it's a good opportunity. >> all right. paul, thank you very much. neil, always good to see you. thanks for joining us. >> thank you. ty, up to you. >> sue, thank you very much. exactly how and exactly to what extent, we don't know, but certainly fears about ebola have

unsettled an already jittery market. congress holding hearings right now to discuss how to contain this deadly virus. and our meg terrell is there live on capitol hill. hi, meg. >> reporter: hi, tyler. we're in the middle of the q&a. a lot of fiery questions about what happened at that dallas hospital, about the cdc response to helping there and a lot of questions ongoing now about travel restrictions into the united states from those three affected countries in west africa. congressman fred upton, the chairman of the committee, starting out by calling for an immediate restriction on travel from those areas in west africa. and some questions to tom frieden, the director of the cdc, from representative murphy just now. take a listen. >> is this going to be your maintained position of the administration that there will be no travel restrictions? >> we will consider any options to better protect americans. >> reporter: we'll be listening to the rest of the q&a bringing you any updates. sue, back to you. >> great work.

thank you so much. the airline stocks have been getting hit so hard on those ebola fears. news that the second health care worker to test positive for ebola flew commercially on monday night, and spain is dealing with a suspected ebola case abroad in an air france plane that landed in madrid. so how should the airlines respond and how are they responding? phil lebeau is live at dallas-ft. worth airport with some details on that. phil, over to you. >> reporter: sue, a lot of questions from the people who are flying through dallas today about exactly whether or not the government has a true handle on whether or not people who are flying potentially in a plane with somebody who has the ebola virus, are they at risk? remember, the government has said look, it's not an airborne contagious virus. therefore we do not believe that there is a danger here. and there are no flight restrictions. what about the plane that was used yesterday or over the next couple of days and yesterday the cdc came out and said there was a health care worker who flew from cleveland to dallas on this frontier airlines flight? well, that plane was then

ferried last night into denver. the headquarters for frontier airlines. it was taken out of service, seat covers and carpets for some of the parts of the plane have been removed, filters replaced. the crew is on paid leave. most people that we've talked with here in dallas say, look, we have no problem with how frontier has handled this situation. but they have plenty of questions about the cdc. we saw one gentleman yesterday who flew in on a frontier flight wearing a surgical mask, rubber gloves. he and others are saying the same thing. does the cdc truly understand what exposure and what dangers are out there for passengers? >> i'm not too concerned, though. i do think the cdc is mishandling this. they didn't have a grip on this from the start. they were very slow reacting on it. so that's what i'm more concerned about. >> we will be trying to not touch anybody or get real close to anybody we don't know. there's too many people getting it. and they're not containing it at all. >> reporter: as you take a look at the airline index, as you mentioned, sue and tyler, it's

been under pressure in the last week, up fractionally today. delta delivered better than expected earnings for the third quarter during the delta conference call. there was a question for the management about what kind of impact they've noticed so far regarding the ebola virus, and concerns from passengers. delta emphatic in saying they have not seen a drop in future bookings. guys, back to you. >> okay, thank you, phil, very much. despite the big selloff yesterday and the volatility which continues today, nobody on the street is changing their year-end forecasts. why, you ask? well, dominic chu has some answers. dom? >> sue, it has to do with earnings and whether or not those earnings will be impacted by all the market volatility. a lot of experts say no, and that may be one reason why you aren't seeing a lot of revisions. we'll have that story and more coming up next on "power lunch," so keep it right here. i'm type e.

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welcome back to "power lunch." i'm jon fortt at the apple event where we expect to see new ipads. but first let me give you a bit of an update on what we've heard so far. apple right now talking about operating systems. ios 8.1 coming. head of software saying that the new ios 8 has 48% penetration into the customer base thus far. and contrasting that with android, beginning to talk about mac o.s., yosemite. also announcing cloud photos are

rolling out. the first five gigabytes will be free. thin then 99 cents per month for 100 gigabytes and pricing up to 1 terra bi terabyte. the most phones sold in 30 days by a lot. a way for developers to make the apple watch which is still due in early 2015. watch kit is coming next month. that will allow developers to make apps. also apple pay is coming on monday. that service for being able to securely make payments at retail. so a lot of news thus far. still no ipads yet, but a lot of events still to go, guys. back to you. >> jon, thank you very much. amid the massive selloff and all the volatility, not one of the big market forecasters on wall street has changed his or her year-end target for the s&p 500. bulls are holding firm. bears are holding firm. dom chu is holding firm. why haven't they done anything? >> i'm trying to be as flexible as i can, but there's a reason

why. analysts that cover stocks, tyler, they cover the broader market. so when you hear about what a strategist's year-end prediction is for the, they get there for a number of different ways. everyone has their own model, their own secret sauce, but here's generally how to get it done. how much in earnings do you expect out of the s&p, and then when you add up all of those earnings for those companies, you attach a multiple to that particular amount of earnings. so a multiple to those earnings, and that's how you get -- in other words, how many times earnings should the market trade? so strategists will rarely change these forecasts unless there's a material change in one of their model inputs. so take one of the most bullish analysts on wall street, barry banister. he's got 2,150 year-end target. he was just on "fast money halftime report." hear what he said about his forecast. >> we went into the year with an 1850 view and here we are, at 1850. we should have stuck with that. however, we jumped the gun, but it doesn't change the fact that things look very bullish. i expect a strong

november/december rally and gains into 2015. >> so there's the positive view. on the other side of the spectrum, the strategist over at ah ameriprise, the views vary. how earnings estimates change and right now it doesn't appear as though a lot of them have given the current environment. >> thank you very much. let's bring in sue down at the exchange with art cashin and ed doitor at market5.com. >> just launched today. >> congratulations. that's wonderful. try and bring some sense to what we've been seeing in the market over the past week or two. >> i think there's a justifiable worry about global recession outside of the united states, justifiable worry about deflation being imported to the united states. you see until today in the price of oil and other commodities, we've seen it in bond yields here at home that there is some concern that global weakness can spread to the u.s. in the longer run, i would agree with dom who points out there may be no reason to change one's

secular outlook. that doesn't mean we can't have a cyclical correction which effectively we've already had. we can go down 10% or 20% all in and still be in a secular bull market. that would not be unusual over the course of history. this may be the real bounce. this may be the real bottom, but bottoms are processes. i'd be a little careful about jumping in right here, but i think we're in a corrective process. >> you're a master of market history. >> mr. cashin has that moniker. >> and mr. cashin is as well. so you said it's a process. the bottoming is a process. what are the hallmarks of that process? >> art talked about it earlier this morning right here on cnbc, there's usually a retest of the lows. and if it's successful, you can get more comfortable. this is a process in which you take a look at stocks that may be beaten down more than the market. and you start to put some cash to work selectively. and you have to repair some of the technical damage that was done. you know, we saw the new number of new 52-week lows expand to almost 360. you have to do technical repair work on the market before you

can say it's comfortable and safe to get back in the pool. >> sue? >> so art, how does it feel to you today? and was yesterday simply some big players in the market, hedge funds, margin debt at basically record highs for the recent period? were they forced to liquidate? is that what we saw happen yesterday? >> it had all the aspects of a forced liquidation. i don't think it was retail margin accounts. i think it was hedge funds. a lot of the prime brokerage people i think either asking for a little more money up front. >> right. >> and not able to do it. i think some people in oil may have been caught off base. and so we saw a link between the movement in wti and where the stock market was going. and we reached some extremes. the number of stocks in the s&p that are above their 50-day moving average got down under 20. it got down very close to 10%, and that's an historic kind of number. >> how important, very quickly,

is a positive close today? >> i think it's very helpful. again, as ron said, it's not going to clinch things. i think this is going to be a multiday process. we're going to keep checking it, double checking. i'd like to see how things go into next week. there's a lot of pressure right now on mr. draghi because greece is starting to come apart. italy's coming right behind it. he's not going to get away with a verbal q.e. anymore. he's going to have to put something up, and that may dictate where the market goes. >> art, thank you so much. ron, thank you as well. let's send it over to dom for a "market flash." >> all right. sue, a strong session for the casino stocks. las vegas sands increasing its dividend by 30% and began a $2 billion share buyback program. its third quarter profits were better than expected. so here's how its rivals are trading now. wynn las vegas sands, mgm all as a group up 5% to 6%. sue, a nice day for casinos. back to you. >> thank you so much. apple shares briefly moved into the green, then moved into

the red. so we're going to check on those shares right now, and they are in the red by 17 cents. we go live to cupertino, california, where apple's latest product launch is under way. we'll have the latest from that. plus, three top apple watchers. what they think of the new products. meantime, as we head into the break on a volatile trading day, the dow is up 37 points, and the auto stocks, most of them, rebounding. we're back in two. (trader vo) i search. i research. i dig. and dig some more. because, for me, the challenge of the search... is almost as exciting as the thrill of the find. (announcer) at scottrade, we share your passion for trading. that's why we rebuilt scottrade elite from the ground up - including a proprietary momentum indicator that makes researching sectors and industries even easier. because at scottrade, our passion is to power yours. whoyour boss?rk for?

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we believe apple pay is going to be huge. it's going to change the way we pay for things. and i'm excited to announce today that we are beginning on monday. >> all right. there's mr. cook with what seems to be the biggest news so far out of this product launch in cupertino, california. apple shares, let's take a look at them, are, as you can see, down about one-third of -- about a quarter of a prers ercent at7. let's join the conversation with natalie morris and recode's eric hessledahl. what is the big news out of this so far? is it that apple pay will start on monday? >> i think that's the biggest thing we've heard. i think it is the most game-changing thing that could happen. there hasn't been a lot of innovation in payments.

and i think, you know, this is a chance for apple to catch up to amazon, catch up to ebay or paypal or whatever it ends up being called and really kind of find new revenue which would be huge. >> i just used softpay or softcard on my phone which is basically the same thing as apple pay, right? >> essentially. but the number one thing that we have to remember here is that apple has been a slumbering giant waiting to awaken in payments for a long time. >> well, that's right. >> they have more credit card accounts in the itunes system than anybody in the universe. more than amazon. >> it's that fact that makes this so significant. >> by saying we have 500 more banks than you had anticipated, all these other retailers that you had anticipated. we are the big boys. we intend to be the one to really consumerize this. >> and you hold your phone over a little terminal and it rolls right to your card. >> it's so fast and simple that they had to demonstrate it twice because it was so simple. >> yeah. it was simple. i think the charge that i made

at cvs went through. i don't know. i haven't looked. let's talk a little bit about -- >> otherwise you stole that cream. >> i want to talk a little about the new ipads that apparently are coming out here. it seems to me that what may be going on in computing is that these larger cell phones are nibbling away at the pad market, at the tablet market. right or wrong? >> absolutely. i think it's happening in a big way. we've seen sales growth slow a lot. and once you've used one of these big phones, once you've used a note or an iphone 6 plus, you don't really need an ipad. >> no, you don't. i find myself using my phone to do things on screens like watchtv in bed that i used to use my ipad for. >> that's the burning question because what does the street want from apple? to put out products every year that people need to upgrade. and unfortunately, with the ipad, even on a yearly update cycle, people don't need to. even with the ones that were

leaked yesterday were, like, that's nice, but do i need a new one? not really. >> people don't refresh their ipads all that often. >> no, no. we were talking about this before the show. if you are at an ipad 2 level, you might consider it because it's maybe getting slow with the new apps and things like that. but my ipad air will be just fine. >> we have to leave it there. thanks very much. sorry it was a little abbreviated. got a lot going on. max, eric and natalie, stick around for our continuing coverage of the apple product launch taking place right now. dom chu now for a "market flash." >> check out the gap stores. the stock moving higher on news the company approved a new $500 million stock buyback program. gap currently up you see by about 1.5%. at that new prepurchase program, sue, $500 million, it's about 13.5 million shares at current prices. back over to you. >> nice percentage gain. thank you, dom. all right. gold market closing right now. let's take a look at how all the metals are performing. the gold market, of course, was actively traded yesterday.

we're seeing pretty much a pullback across the board with the palladium market now down better than 2% on the trading session. let's head back over to the nymex and jackie. jackie? >> reporter: sue, talking to bill mccarthy about the action that we saw in metals today. very interesting that gold started going lower. we saw equities and crude rebound here. is this just a general rotation, or is there something else happening? >> well, right now the gold market is indecisive. what it's waiting for the markets to do is give it a clue as to whether this deflationary financial stress that we saw in the system is real or not. is this just going to be another head fake? gold is not sure right now. so what you're seeing is as the stock market rallies, you're starting to see gold soften up a little bit. you know, because the stock market's indicating okay, stress relief. >> reporter: yeah, and we certainly have been trading at a range, of course, we'll watch and see if gold is able to break that 1250 level. for now, guys, back over to you. >> thank you very much, jackie. appreciate it. to the bond market now. the ten-year moved below the 2%

mark earlier this morning. it's now back above it a little bit. rick santelli tracking that and the currency market. and basically everything that's moving for us today. hey, ricky. >> reporter: it is. and just for the record, sue's absolutely right, but it not only traded under 2, it traded under $1.90, and it hit 1.86, 1.87 depending. what happened yesterday late in the day when yields popped up is what's significant here. look at two-day charts of 5s and 10s and realize that we are above settlement yields by several basis points, and we delinked briefly, so we left about 15 basis points in the wake before, but certainly the treasury market is telling us the stock market is not going to have a meltdown today. thus far it's been right. when we look overseas at what bund yields have done, if you look at the chart in front of you going back towards october of 2013, you see that the spread is narrowing. that could be a sign that the relative value trade is slowly ending. the last chart-to-dollar index

not having a good two-day run. in fact, the king of the hill today is the british pound. back to you, sue. >> okay, rick, thank you very much. back out to jon fortt. breaking news on apple. jon? >> reporter: sue, tim cook is on stage right now beginning to talk about new ipads. no details on that yet, but we have had some details on software. o.s. 10, yosemite is available today. that is operating system software update for the mac. also ios 8.1 for iphones, ipads and other ios devices. that will arrive on monday with features such as continuity, apple cracking lots of jokes. meanwhile in this presentation which thus far has been a little news light about secrecy, for example. they had stephen colbert up on stage. tim cook right now pointing out the 225 million ipads have been sold overall before they get ready to roll out the new ipad details, pointing out that the

ipad actually beats overall pc sales as shipments over the past 12 months. so this is a big category for apple. and the holiday quarter last year made up $11.5 billion in revenues. so a lot at stake for apple over the next couple of weeks. after this rolls out, tyler. >> all right, jon fortt reporting from cupertino for us. let's take a look at something you probably haven't seen in a few days, a lot of green. now, they're not big moves, as you see there, just about a quarter percent for the dow, a quarter percent for the s&p and about a half percent for the nasdaq. but they are green numbers. amid the wild market swings, where should you put your money now? we are going to put that question to the man who invented index mutual funds, the vanguard founder, jack boegel, next on "power lunch."

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and yet another energy saving opportunity from pg&e. find new ways to save energy and money with pg&e's business energy check-up. welcome back to "power lunch." i'm jon fortt at the apple event. and we have gotten our first look at the new ipad, at least one of them, the ipad air 2. tim cook pointing out that customer satisfaction rankings for the retina ipad mini were

about 100%. the ipad air 2, he says, is even better. it is thinner. and you might recall that commercial for the original ipad air which had it hiding behind a pencil, this time the pencil is laser shaved in the commercial to show that it's even thinner than a pencil this time. 6.1 millimeters in thickness. of course, we'll have to hear about battery life because you still want your full battery life at that extra thinness, guys. so continuing to track these developments live here in cupertino. back to you. >> thin, right, jon? jon? you can never be too thin or too quick. >> reporter: yes. >> and thinness and quickness tends to go together, don't they? >> reporter: but that you're so thin that you run out of energy too quickly, that's a bad thing. so endurance is important here as well as thinness. >> thank you very much, jon fortt. sue? >> that was a pretty clever comeback, jon. i've got to tell you.

all right. stocks clawing their way back after a triple-digit loss at the open. and of course, yesterday's incredibly volatile trading session. so what do you do with your money right now? with the dow now up 53, the nasdaq is up 11. vanguard founder, the father of the index mutual funds, joins us with some sage advice. always great to see you, jack. thanks so much for making time for us today. appreciate it. >> good to be with you, too, sue. and tyler. >> if you're a long-term investor, do you just put what happened yesterday and this morning aside? you know, because that seemed to be kind of a day trader event, if you will. what do you think? >> it's so easy to put it aside when you have something like a 10%, which i guess we had a little less than that in the standard & poor's, 10% decline in the market. it's really nothing when you get right down do it. when you get to 20% and 25% decline, and i think on your program not so long ago, i said we ought to be prepared for something like that. you know, it's a very

speculative market. not that we -- not necessarily that we'll have it, we all ought to be ready for it when it comes. so there it gets a little more difficult. and i can tell you it's 50% decline, and i've been through about five of them, it gets very difficult to stay the course. but it's been right all through my career, and i think it's going to be right again today. don't do something, just stand there. >> right. how does the market feel to you right now, jack? because in some sectors, the valuations were a little bit rich. so you could argue that yesterday might have been a very healthy thing for this market to go through. you've seen so many different market cycles. where do you think we are in this market cycle? >> well, we're not in a bad place. you know, it's not cheap. there are two ways of looking at earnings. at least i use two ways. one is if you look at past reported earnings, after all the writeoffs, the market's selling about 19 times earnings.

and if you look at forward operating earnings, the market is selling at about 15 times earnings. i think the preview of the 19 times is the more accurate representation. but those aren't inflated numbers like we had back in 2000. it was 35 times earnings then. and that is a bubble. this is not a bubble. >> so jack, you once taught me that basically your return on stocks is made up of three constituents, the earnings growth, the dividend you are paid and then the speculative premium, basically the p.e., the speculation that people are willing to pay for each dollar worth of earnings. as you look forward over the next ten years, unpack what you think the forecast will be for average annual returns on stocks. what do you think they'll be? what will come from earnings growth? what from dividends? what from speculative premium? >> yeah, well, not to cop out, and i'll give you the numbers in a sec, tyler, i really look at

rational expectations for the future rather than forecasting the future. the future is something that's very difficult to forecast. so what is a rational expectation? well, today the yield on stocks is about 2%. a little bit above that now with this decline. i think we can expect about a 5% earnings growth. that's probably a little optimistic after the earnings growth we've had. and that would give you a 7% investment return on stocks. i think it's possible -- i think it's highly unlikely that the nullifier, the price earnings multiple, will go up from these levels. i think it's more likely it might ease downward. so if we took a percentage point off that, you'd be looking at a 6% return on stocks over the next decade. and i think that's rational. and when you look at bonds, which is your basically essential -- the other place you would put your money, my opinion two big places are stocks and bonds, and don't fool with commodities. don't fool with gold. don't fool with platinum. don't fool with anything but commodities because it has no

internal rate of return. you can't do this kind of analysis. >> jack, thank you. >> that would give you about a 6%. and bonds would probably give you somewhere, depending on how much your treasuries, somewhere between 2 3/4 and 3%. so even if stocks do not do 6% or 7%, i think it's highly unlikely they will do less than bonds. >> all right. jack, thank you very much. always great to see you, sir. >> good to see you. let's go out to jon fortt with more on apple. >> reporter: tyler, we got the details on that battery life, among other things. ten hours which is about in line with what we've come to expect from ipads. a little more detail on the thinness, too. 18% thinner than the first-generation ipad air. literally half the thickness of the original ipad. so you can stack two of these ipad air 2s on top of each other and get roughly the thickness of the original ipad air. now, they're talking about the camera in the ipad. of course, we've all seen tourists, maybe some viewers have done it, using their ipads as a cameras. the head of marketing saying the

camera is perhaps the feature people like best on their ipads. first time i've heard apple say that. they've added software features to make the screen even better. viewfinder, in terms of colors, looks like there's a gold version to match the gold version of the iphone. some might call it gaudy, but hey, a lot of people like the gold color as well. tyler, back to you. >> jon, just a few weeks ago many were calling on the fed to raise interest rates, and now some are whispering about a potential qe4 as europe faces an economic slowdown. could that be? ron will give us his take next. big day? ah, the usual. moved some new cars. hauled a bunch of steel. kept the supermarket shelves stocked.

made sure everyone got their latest gadgets. what's up for the next shift? ah, nothing much. just keeping the lights on. (laugh) nice. doing the big things that move an economy. see you tomorrow, mac. see you tomorrow, sam. just another day at norfolk southern. i make a lot of purchases and i get aness. lot in return with ink plus from chase. like 70,000 bonus points when i spent $5,000 in the first 3 months after i opened my account. and i earn 5 times the rewards on internet, phone services and at office supply stores. with ink plus i can choose how to redeem my points. travel, gift cards even cash back. and my rewards points won't expire. so you can make owning a business even more rewarding. ink from chase. so you can.

the all new, head turning cadillac ats coupe. it's irresistible. ♪ what might or should the fed do next? ron, you are writing about this in one of your articles. >> i talk the earlier in the week about how instead of doing qe4 or delaying the end of qe3 might want to focus on doing things that would stimulate the velocity money. that would be maybe stop paying interest on excess reserves at the fed, push that money back

into the banking system, start relaxing credit restrictions. instead of focusing on the level of long-term interest rates, which if deflation is a real threat, if global recession is a real threat, we won't have a problem holding down long rates. we'll have a problem getting money to circulate through the system and speed up the economy. >> quick answer, the fed still has tools in the toolbox. >> i would say more than people realize. >> thanks. >> quick thought. we'll be right back following the markets.

with the dow jones industrial average now up about 31 points on the trading session, kenny polcari is here with me on post 9. what are you watching for today? what's the most important aspect of today's trading? >> it's kind of the strength of this little bit of a rally that we see. and i'm not really buying into it. i don't think most people are, right? because you'd expect after the action that we had the last couple of days and the violent way in which it happened, that you would expect a reaction like this. but i would be careful going into especially tomorrow ahead of the weekend that you might see and quite honestly you probably want to see another test of the lows to make sure that the market needs to do some repair. it needs to know that there are bodies there. >> thank you, kenny. out to jon fortt if cupertino. jon? >> reporter: sue, a little bit more detail on the new ipad air

2s. turns out they do have touch i.d., the fingerprint reader. the display has improved with reflectance, down 56%. it's an a8x chip. apple pay built in but it looks like that's for online use only. right now apple partner is demoing an image editing app. take a listen to some of the event. >> this is the new ipad air 2. it's unbelievably gorgeous, and look how thin it is. can you even see it? >> reporter: and more to come. it being looks like they're focusing on productivity with an improved camera including a facetime hd camera, sue. >> all right, jon, thank you. the market starting to lose some steam. we're back in two. sheila! you see this ball control?

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the market has lost its strength right now. we've turned into negative territory. the dow jones industrial average is now down 6 points after rallying back from an early-morning rout. the transportation averages sharply higher on the trading session. that's a big comeback there because it's been decimated in the last couple of days. the airline stocks finally recovering. so we're up about 115 points.

and the yield on the ten-year note after moving below the 2% mark to 1.91% is now holding at 2.146%. ty? >> there is a lot of suspense left in this trading day. >> there really is. >> that will do it for this edition of "power lunch." thanks for joining us. >> "street signs" starts now. well, we have a comeback on our hands. at least from yesterday. stocks are doing something that they have not done in three years. hi, everybody. in moments we'll bring you that remarkable stat and get some big-money advice all hour long. let's take a look at this turnaround more closely. we've got the dow currently flat. okay, yeah, it's flat, but it was down 197 points at the low. even the nasdaq which dipped again in correction territory earlier on today is also managing to recover today. all right. to help you make sense of all of this chaos, we have built it bigger, stronger, faster, let us just call this the $6 million wealth roundtable.