on wall street although we're still seeing big losses we are clearly off of the session lows this morning that had the dow down almost 1,100 points. right now the dow is down 349 points. s&p is off about 45. some of the big dow laggards, dupont, cisco, jpmorgan, travelers, exxon actually got down to $66 today. over at the nasdaq names down over 3%, netflix, yahoo! amazon, facebook, tesla. for a moment netflix was down 16%. and your biggest loser is baidu down close to 6%. the next thing we'll watch is the you'european close in about minutes from now. could we be in for round two of the major volatility that continues today?

we'll bring that to you later on this hour. we're joined by jon and kayla tausche. >> we had a very interesting morning. let's do a quick recap. let's look at the dow industrials. we were down 1,100 points and here is what's really important. real genuine panic selling like i haven't seen in years right at the open. like at the spy here and that was really the heaviest volume in the first minute or so. after we bottomed out, that's when we saw the volume actually drop a little bit and then as it started coming back, the volume increased again into 9:40, 9:45 or so. a bottom within three or four

minutes. all the selling seems partially exhausted and then buyers just come in in droves after abowhen most of the heavy buying occurs. right now 110, 150 million shares on the spyder. that's real panic selling and panic buying occurring within 10 or 15 minutes. the vix went to 53. that's something i've never seen in a two-day period and now back down to 36. remember, it was 13 a little -- essentially a week ago. i mentioned ford and what happened with ford. closed at 13.86 on friday. 10:44 was my understanding and then the panic buying started. you see that vertical up? that's panic buying trying to get in on ford.

10% above or beyond that five-minute period just before, and the stock was actually halted for five minute, not because it was down, because it was up too much. that's real panic buying that you're seeing here. i use this as an example. it's happened with other names. i had some questions about real notable drops, and asking about things so jpmorgan might be one, closed at $63.63 friday. it opened at $59.29, down about $4. a good 6%. then it very quickly went down to the lowest print i saw was $50.07 before bouncing back. of course a lot of people were puzzled and somewhat outraged by these drops at the open but, again, we'll go back and look at the stocks and make sure they're within the bands, but it's hard to describe how really intense the opening print was for a minute or so. i just want to note that a

number of stocks did go positive. i don't see a lot of them but micron is one that was $13.57 at the open and climbed within a minute of that panic selling right at the open. so i guess, carl, my point is a lot of people wanted to dump a lot of stock. maybe it was from europe. they don't put out press releases but a lot of people wanted to dump a lot of stock at the open and within three minutes a lot of people wanted to buy a lot of stock. carl? >> bob, we will talk to you again very shortly, bob pisani, on the floor for us today. thank you. right to david kelly, over at jpmorgan funds, who joins us on this monday. david, good morning. good to have you with us. >> good to be here. >> i need you to tell our viewers what's being said where you are, how they're characterizing the magnitude of that sell-off bob just mentioned and what they believe the reasons are behind it. >> well, the psychology has really taken hold here. that's the case with all corrections and it's obviously

gotten more extreme over the weekend. but the actual causes in terms of slowdown in china and low commodity prices really is not something that should move the markets in the u.s. in this way. i mean if we don't export that much to china, it's not going to not be the u.s. economy off its heels here and then lower xh commodity prices are a stimulus to the u.s. economy. so obviously you check all the fundamentals, what's going on in the markets, what's going on with the psychology, and the economic fundamentals. they look okay. i think an upward revision to gdp and valuations and the reality is even after friday's close, never mind this morning's open, we were actually somewhat cheaper valuations relative to the last 25 years in absolute terms and very cheap relative to inflation, interest rates, and cash yields. overall we checked the economy, we checked valuations and remind investors they are investors and

not traders. the most dangerous thing to be doing in this market is to try to be traders. >> david, we hear words like psychology that you just mentioned, sentiment, emotion as being part of the drivers of this market, but then when you see the point drops and the vix spikes compared to levels we haven't seen since the financial crisis it's hard to believe given where the economy is now the sentiment brings us back to those times. what would you say? >> well, part of it is psychology but, also, that's how that psychology interacts with a modern market. this is a very fast, computer driven market. as we've seen we have a number of instances of crashes both in the equity market and the fixed income market. i don't trust this. bob pisani was talking about some of the moves on the open. i don't trust those prints as being genuinely indicative of the average of investor views as the value of various securities and i don't think that long-term

investors should pay too much attention to them. it's very unsettling to see as much swing in the markets as we're seeing for a relatively boring, stable global economy but i don't think we should overreact to them, realize some of the psychology and also some is the way the markets move these days. >> david, we should mention we are still down 2.5% plus on the major indices. normally we'd be making a bigger deal of that except where we've come from. so i'm wondering fundamentally at what point do you get concerned? it seems to me we've had a number from the u.s. perspective, a number of things wrong, concerns about china, et cetera, et cetera. but it feels like there needs -- to me there needs to be another shoe to drop before this becomes a real concern. what's that potential other shoe? do you see one out there? >> i can see potential shoes drop on both sides here. if china does not like people being so negative about its economy, about its currency, it's stock market. if i woke up tomorrow morning to

find a huge chinese infrastructure expansion, that would help both commodity markets and the chinese market, the global market. so shoes could drop either way here. i think for the u.s. market, though, the key thing is does it impact the economy? is there enough of a wealth effect here to impact the economy? i think the answer is probably not. we have lots of consumer balance sheets, the consumer side and the business side. we have low rates. we've got the advantage of strong job growth in recent months that should give consumers more money. it will take a lot to really knock this economy. if you don't knock the economy, the markets will stabilize and move back up because in europe and in the united states and even in japan, economic fundamentals do look pretty sound right now. >> and on that point, david, i mean, you berated the fed for months now that they needed to move. now that debate is moot.

we have lockhard speaking in a few hours. what are they supposed to do? >> run monetary policy with an eye to the economy not to markets. i think the problem is we have a hyper sense it tiff market because the federal reserve is afraid of scaring us. i think "the wall street journal" had an interesting editorial over the weekend where they said low interest rates have stimulated the global economy and, oh, by the way, it's too late to raise rates. you can't have it both ways. the truth is there's nothing about a rate increase right now in a disciplined way that would hurt market or the economy. the federal reserve would just stay disciplined, react appropriately and begin to move rates back to a normal level in a slow, measured pace that would help psychology, it would not hurt the global economy and that's why i think they should just stick to their guns, have some guts here and raise rates gradually because this economy neither in the u.s. and around

the world does not justify the easiest monetary policy in a century and i think it's just harming things to maintain this level of addiction to monetary ease. >> we'll get a sense that have would-be discipline maybe in a few hours and definitely later in the week. david, thank you. we'll talk to you again. david kelly from jpmorgan. the next hurdle, the european close, is in about 20 minutes. at one point the dow fell more than 1,000 points. but right now we're down 445. the next major driver for our market, of course, is europe's close at 11:30 eastern. could we be in for another round of losses. we'll talk about that in a couple of minutes. the king of the campus on day one. but you're armed with a roomy new jansport backpack, a powerful new dell 2-in-1 laptop, and durable new stellar notebooks, so you're walking the halls with varsity level swagger. that's what we call that new gear feeling.

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major losses on wall street, all averages are down close to 3%. s&p is down more than 3%. the dow in the first 90 minutes of trade traveled more than 3,000 points. meanwhile, the nasdaq very close to entering bear territory down 18% from its highs. bertha coombs is live at the nasdaq with more. bertha? >> reporter: a wild, wild day, kayla. we've seen the nasdaq more than 670 new lows this morning. 410-point swing just at the open, down over 8% at one point. you have apple hitting a new low. traders saying there's just no buyers to be had.

apple was getting near positive about an hour or so ago. pounding the table saying as the market worries about slowing growth in china potentially taking a bite out of iphone growth, analysts there say, quote, they are about to embark on their next phase of strong growth on an iphone 6/6s product super cycle. still, the stock technically weak at the open and throughout the day here, every stock at one point in the nasdaq 100 started in the red, but we're starting to see a little bit of relative outperformance when it comes to the chip sector. chips have been battered in bear market territory since last week, but take a look. micron this morning, skyworks, nxp, bouncing off new year lows. it tells me people are selling their winners still. biotechs, still up 10% on the year but now getting close to bear market territory.

down about 17% from their recent all-time highs and some of these other big technical names like netflix that have led the way higher all year, today tipping into bear market territory off more than 20%. amazon and gilead up about 16%. so they're getting close to that bear market territory. interesting stock today hitting a new high, right at the price with which it is being acquired. "the wall street journal" talking about the health care deals, mergers, the arbitration is a bit off with these gyration in stocks. this one spot on for holders of receptors. kike co-found eer of elevat

partners, good morning. >> good to see you, carl. a very interesting day. >> yes, yes, it is. we know you got cautious i would argue towards the beginning of the year. i forget what percentage you put into t-bills you got really cautious. so to what degree now is your appetite wetted if at all? >> i think this is the kind of thing that markets should do regularly to let steam off. and i think investors should take two things out of today's action. the first is, yes, there really is a connection around the world, when things go bad in china, we don't get a free pass. we also don't go to zero. i don't think this is by any stretch of the imagination the end of anything. but we do have to pay attention and the market is giving us that signal. the second thing we should take away is the market is dominated by algorithms today and when they experience something unexpected, they're going to behave badly as they did on the open today.

and it's really important not to let yourself get freaked out by that. so as i look at this overall thing, i think this is a normal, healthy thing. this is what i was worried about. and i would say to people, listen, if you aren't in the proper allocation mix today, you want to move, but in all probability, we will probably go back to the highs by the end of the year and that's not a production but is the most healthy case that we can build as oppose d to the end of something. >> roger, bill gurley at the end of last week was suggesting that this market volatility, the move to the down side will have an impact on late stage valuations. what kind of conversations are you guys around sand hill road having this morning around what happened last week and what continues to happen this morning? >> well, here's the good and the bad news. i don't think anybody on sand hill road, besides myself, has

even woken up yet. i suspect that they will sit there and tell you none of this has anything to do with the valuation of unicorns, and maybe they're right. my own view is in time, you know, all of these things are going to have to prove their worth and that the valuations that are being carried today have a view of the future that will prove to be the case but i suspect not for most of them. i think again, carl, the core thing is if you're a trader, i think you want to listen to what jim cramer was telling us in the last hour. if europe aninvestor, what you're looking for now is what is the portfolio i want to own for the next wave? where are my entry points? all i can tell you, we're much closer to those entry points than we were a week ago. i'm looking for the things that i want to own because we've

taken a lot of risk out of equity valuations. >> a lot of people, roger, saw a ten handle on ford, and they did step in and buy at those levels. i'm wondering if you're a ceo of a company that has a buyback program outstanding, is today a day that you get in the market and start buying up your own shares? >> you know, quite honestly the whole mania for buying back stock has never made sense to me. i can't even give advice to those people. i look at this and go, to me you have zero percent interest rate. you're supposed to be building your business not buying your stock back, but we have a management mania going on on stock repurchases that i frankly think is insane. >> roger, you mentioned the most likely scenario revisiting the levels we were at before today, clearly. do you believe that this morning when we had apple at $92, exxon at $66, was that the washout? is that what you're saying?

>> no, no. i think that was the algorithms panicking in a metaphorical sense. they were freaking out because what happened in china was not something that was in anybody's map and so the market had a brief freakout. no, no, i don't think we've hit the bottom of anything. all i think we've done here is scare the crap out of people and, you know, we've gone six or seven years without doing that. i just think bull markets really depend on having a wall of worry, on people not actually buying into and believing all the hype and, you know, so it's really healthy when you scare people. you want to scare them without giving them a heart attack. >> right, right. >> and knock wood, that's what we've done here. we'll have to see. let's face it, if the chinese continue to mangle their economy and their stock market, then we may not be done here. my hope is the chinese will concede that things have changed

and try to let the markets run their course. >> really quickly, roger, tim cook responded to an e-mail from cramer this morning and said the growth in iphone activations is accelerated the past few weeks. performance so far this quarter is reassuring. is that too micro for you or do you believe it says something about what's going on there? >> i actually believe the u.s. economy in general is the best it's been in years and it doesn't surprise me there's good news from apple at the margin. the stock, it's hard foe me to imagine the s&p 500 performing well from here without apple performing well. so if you like the market, i think you have to like apple. >> roger, appreciate all that. roger mcnamee, we'll talk to you again soon. joining us from out west. and media names also on the move, and like everything else slipping to the down side. julia boorstin is live with a closer look.

>> reporter: media stock tumbling after a rough week. disney down over 20% from its 52-week high. it has bounced back from its dip at the open. today it's trading down about 2%. last week it lost about 8% dragged down by an analyst downgrade questioning the health of the television business. netflix lost as much as 18% this morning. now it's down about 4.5% after losing nearly 16% last week. the stock is still down about 23% from its all-time high to just august 5. today's decline comes despite netflix announcing partnerships with japanese telecoms and internet giant soft bank to flaunt its video streaming service in japan next week. cbs has fallen less than other media markets. it's now down just about 2%, although it was down less earlier. now cbs has far less international exposure than other media companies. on the other end of the spectrum

falling more than other media shares we've seen studio lions gate that has a deal with china's hunan-tv and discovery and news corp all have significant international exposure. social shares are also suffering. facebook shares down about 4%, having lost as much as 16% earlier today. they bounced back a bit. now twitter shares are also down, of course. they're down about 4% as well, recovering from a nearly 19% dip earlier today. that company, of course, also suffering from larger concerns about its growth potential. linkedin is now trading off more than 2.5%, recovering from a dip earlier this morning. we'll be monitoring these media and social stocks as investors look for opportunity in these companies. kayla? >> julia, thanks. up next, volatility is an understatement all morning

today. on days like this, of course, the european close is usually a big cat a ligs. the market took a cue owe open. it's a moment you can't afford to miss on the other side of this break. tonight at 7:00 eastern time, a cnbc special report "markets in turmoil." we'll have all the information you need to know tonight at 7:00 p.m. as we look ahead to the open in asia and we get you ready for tomorrow's trade here in the u.s. can a business have a mind?

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wab maybe one of the most important european closes in a long time. simon is back at post nine. >> european markets thundering in, once at the open and then when we had that 1,000-point loss from the dow and still in red as you can see. these are real heavy losses today. overall the index, the stoxx 600 index down over 5%. today germany became the first major market in the west to go into correction territory as a result of the losses currently

down 22% as you can see from e the -- the bear market, down 22% from the highs in april. meantime just running through the sectors moving today, the basic resource sector down heavily right from the beginning as you would expect given the china concerns. there you see the global mine is down. oil and gas majors also moved to the down side. just to pick out a few of the sectors as brent fell below $44 a barrel and you know the market is concerned when you see the asset managers and insurers moving to the down side, heavily exposed to equity markets anyway, joined by some of the big banks during the course of the session. a lot were late movers into negative territory. 6%, 7% as you can see on some of these banks here. meantime just a bottom line for august and how bad it's been in europe, in this country you're still down 9% in europe. for august this is down almost

14 and through that period of time the euro has risen which in itself is bad for european equities because so many of them are exporting stocks, as you know, but also a sign arguably of market stress because people invest around the world. you want to square off the trades, the money back into the euro and it shoots high er and just the fact the euro is gaining. if you were exposed to the euro means that perhaps arguably you have to close some positions as well. to balance what is going on here, i just wanted to mention to you a note that came out from jpmorgan cazenove that basically recommended you should have added to your equity exposure throughout today because you should do that, they say, on weakness and they have been bullish in the european market. they say the market is not reacting to the fact the earnings in the macro data are improving for data and the ecb is still engaged in qe in europe

for which no credit is being given. china, they believe, is no longer the key risk for markets. it's actually what's happening with the u.s. cycle although they say that is not immediately obvious at present. become to you. >> hopefully it doesn't become obvious at all. simon, thank you very much. when we come back, not nearly the volatility that we saw in the first couple of hours. more names, though, continue to fall into bear market territory. we're watching the transports right now. meantime, the dow and the s&p on pace for their biggest monthly losses since the end of the financial crisis. but what if you could see more of what you wanted to know? with fidelity's new active trader pro investing platform, the information that's important to you is all in one place, so finding more insight is easier. it's your idea powered by active trader pro. another way fidelity gives you a more powerful investing experience.

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major markets are still in steeply negative territory. the dow falling by 477 points, although we should mention that's about hatch the losses that it saw earlier at the open. s&p down by 60. nasdaq down by 137. major averages close to 3% drops today. charlie is director of research at pension partners, manager of the inflation rotation fund. and, charlie, it's great to have you on a day like today. >> good to be with you. >> we pieced together what happened throughout the morning. it seems a picture where you have this overwhelming sentiment about potential weakness in china or continued weakness in china, coupled with algorithms here and you saw what we saw this morning. how should we position into midday? >> investors should take a step back and not panic.

panic is never a good thing and take a look at where we are and what's really changing. the environment over the last three years has been highly unusual. we've been living in the outlier. we haven't really seen a period like this in history where the s&p has gone up, up, up, up, up -- always up over the past 6 to 12 months. that changed at the end of last week. that's a big change and investors should be prepared for more volatility, more risk management. there's a balance between risk and reward as there always has been in investing. >> there weren't a lot of people at the end of last week who i think expected the move we saw today in the vix which will be catching traders flat-footed that you said may have been shorting the vix last week. how tough is it to have real conviction about the direction of a market like this? >> it's difficult. but, again, it speaks to what's changing here. last week seesaw the highest spike in the vix, advanced over 100% and the playbook has been the past few years when

volatility spikes you get long the market because we've seen these v-shaped rallies back to new highs. well, that's not going to happen this time around. the correction is about 12% this morning. you're not going to get a "v" off that. you have these headwind that we've been talking about for a year and a half where this didn't come out of nowhere. we've seen credit spreads rising, defensive sectors leading such as utilities. we've seen the yield curve flattening. it really has not come out of nowhere. it's been a slow build, an illusion of stability, so to speak in the markets this year just going sideways and now it's coming very quickly that normalization. >> charlie, we were down 500 points on the dow on friday. we're down 450 now off almost 3% on the s&p. i feel like we're catching our breath from this morning, that was crazy, but, still, this is a significant move. so what should people do differently? i understand the sit tight don't panic but even if you're not panicked, if you're being rational, what do you do?

>> right. you have to think about how much risk you can take, right? there's only been reward the last few years. so the message has been the fed has got your back, sevcentral bs have your back. take as much risk as you want and they will be there for you. well, that's changing now. if you're holding too much equity to the point you can't sleep at night, you're coming in this morning, you're holding too much stock. you need to have a balance between risk and reward in your portfolio. you can't take more risk and credit or equity markets because the fed funds rate is at zero for almost seven years. you have to reach. there's no alternative. this is what happens, you know, when risk starts to matter again. >> a lot of people want to tie it to something, to tie it to china, to tie it to rate tantrum. some believe it's a matter of a few big players repeatedly being on the wrong side of a trade like oil this year. does that make sense to you? >> all those reasons could qualify. hindsight, we can always come up

for a reason for a big decline whether it's china, whether a few years ago it was europe. two months ago it was greece. greece isn't even mentioned today. what i find interesting is that s&p 500 earnings are now down three consecutive quarters. they're down 16% over the last year. i've been talking about a revenue recession where s&p 500 sales are down 3% over the past year. it's not just an emerging market, it's a u.s. issue as well. when you have earnings going down and you have elevated valuations, that's typically a recipe for a large decline and that's what we're seeing today. >> and emerging market currencies, this idea that you shouldn't really be chasing risk just for the potential return, just because rates are at zero, but we're seeing mutual fund managers who have been in emerging market currencies and debt and now they're running the other way potentially facing a lot of losses. do you think that we're going to continue to see that being a very ugly space to play in? >> this is not going to be an

easy way to get out of this. you're looking at multiyear lows, sometimes all-time lows in a lot of these emerging market currencies that will be an issue for months to come. that said, i think there's an opportunity there in the next few months. there will be a big rally in not only the u.s. market but emerging markets and we're getting excited for that, defensively positioned right now for 100% treasuries. we've moved there in early july but we're excited for the opportunity in emerging markets. this is when investors should start to think about being greedy. we're supposed to be greedy when others are fearful. i don't think it's enough fear just yet but encouraging to see the vix above 50 this morning and when markets go down i get more excited. when markets go up, that's more risk. now it's less risk. the lower it goes, the more excited i get. >> you're a good voice to have as we look at what is an increasingly red day on wall street. charlie, we appreciate it. >> great to be with you. a programming note tonight at 7:00 p.m. eastern a cnbc special report "markets in turmoil." we'll have all the information

you need as we look ahead to the asian market open tonight and get you ready for the opening bell here tomorrow in the u.s. >> and another sector getting hit hard is biotech. that's right. biotech is feeling it along with the rest of the market but this is a sector folks have been worried about. if you look at biotech compared to the s&p year to date, it is still positive up 9% we're showing. if you're looking at maybe walking through this morning for those big biotech names like gilead, you did see some of that maybe even panic or something weird going on right at the open. look at the drop right at 9:30. it's not clear if that was even a real trade but we're seeing that. now they've started to recover down about 2% on average. now i've been asking around today to investors, what are some of the areas they're looking for to get growth or get back in the green, looking at stocks with nearterm catalysts,

one working an antibiotic with clinical trail data. we're still making a bet on whether that will read out positively or not. so could still be a risk. if we're looking at today across biotech there are a couple names in the green. those are epizyme and exelixis. good news on their cancer drug. if you're making picks, there still are potential areas for growth though across-the-board people are freaked out. >> quite a bit freaked out. thank you, meg. major losses across the board and at one point the dow was on track for its worst daily points loss in history. rick santelli, you have plenty to watch. what's at the top of the pile? >> reporter: this is easy like that song, know when to hold them, know when to fold them. here is the hand that we're dealt. as investors, whatever that hand is, that's the hand you need to play. we'll talk about all the comments i've heard throughout the day, some of the things people on trading floors will say, and we're going to do a little market whispering after

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coming up on "the halftime report" with the massive sell-off in equity, commodities and the global markets, what's your next move? our desk gives you their words of wisdom. plus, as this year's high flyers fall into bear market territory are there values out there. bill nygren has some names on his shopping list. and he warned of a correction

earlier this month but where does he think we head next? jeremy siegel joins us top of the hour. see you then. >> rooking forward to it, michelle. as the global sell-off continues on technology stocks are being hit hard. apple has turned positive on the session, half a percent. josh has a closer look. josh? >> john, hit hard is right. 40% of the tech sector in the s&p 500 in a bear market, meaning a drop of more than 20% from a recent high. that list includes names like micron, sandisk, yahoo, and hewlett-packard among others. being down 10% from a recent high and there you have names like ebay, sales force, microsoft and scisco all down hard. big movers as you mentioned include apple. that stock has been all over the place this morning. it was down 13% at one point but now as you mentioned, jon,

bouncing back. the big worry there is 25% of the tech giants sales coming from china, ceo it tim cook told our own jim cramer business in china remains strong. one question what all this means for the private markets where we know valuations have soared. more capital put to work in startups in the second quarter than any period since 2000. venture capital ooists say it depend on how long and deep it is. if it's just a correction, then the ipo window remains open. the danger, though, the sell-off is more deep, more sustained and that ipo market locks up. regardless, a lot of his colleagues in silicon valley today will be doing the same thing we all are which is watching our stock portfolios. guys, back to you. >> and thankfully this tends to be a quieter part of the year for ipos. we will see, of course, over the coming weeks whether this has any effect on that sentiment. over to rick santelli.

rick? >> reporter: thank you, kayla. i couldn't decide what to talk about today. i had 12 topics, 2 1/2 minutes. i'm just going to make comments about each of them, something new. one thing i've heard from many people and many people not only on the floor but our channel today, hey, the fed needs to make an announcement, to shore up the markets. my question is, why? haven't we already been through what happens when they shore up markets? qe-4, yeah, let's try that again so we can go through the withdrawal again. doesn't seem to make much sense. what about this is all going to affect the economy at-large? well, when we were moving up and many were saying the fundamentals were mismatched with the price level of the equity markets, there was very little trickle up. i suspect that it will be very much balanced in terms of not much true economic trickle down. what we will find is a way to calibrate the true value of stocks when the fed comes up with the true value of interest

rates and we'll get the true value of stocks. further, many think that central banks around the globe are going to start selling like china, like japan because they need to. look at what investors have done, like art cashin says. you don't sell what you want to, you sell what you can. on this one i put an asterisk. i don't think foreign central banks will sell. such a wonderful trade they've been holding in terms of treasuries. why is there so much in the way of stock moves that dwarf the bitty moves in treasury? and this is pretty evident. look at the ten-year. it settled at 204. 30-year bond is actually up two basis points. well, because even though the debate has been raging on for years as to what market is right, we know which market is right now. treasuries have handicapped the long end to global growth and the reason the moves aren't bigger is because everybody is catching up to the reality

treasuries have been pricing all along. what about can't raise rates now. of course they can. does anybody want to go tlou this drip-drip-drip again? the markets are making an adjustment. janet yellen, please, let the markets do it. don't put the markets through this again. oh, the funding trade. one of the reasons you're seeing big moves in the yen against the dollar and the euro against the dollar is because there's a short position created for carry trades. yes. there's another side to this. it doesn't matter how the values get up here. this is a recalibration trade now currencies are recalibrating in favor of the dollar. listen, i only made it through about half but you get the idea. you're dealt a hand, play it. don't live in denial! carl, back to you. >> rick santelli, we'll talk to you in a few moments. thank you. when we come back we're in the midpoint of what is clearly a long day. still major losses across the board. down 345. names like netflix, of course, which had just a terrible

morning, down 16% at one point. facebook, yahoo, have erased some of the losses. tonight at 7:00 "markets in turmoil." we'll look ahead to the open of asian markets and get you ready for the u.s. check out apple. it is trying to go green. has finally made its way there and is trying to hold on. we'll talk about that in a moment. ne. but you're armed with a roomy new jansport backpack, a powerful new dell 2-in-1 laptop, and durable new stellar notebooks, so you're walking the halls with varsity level swagger. that's what we call that new gear feeling. you left this on the bus... get it at the place with the experts to get you the right gear. office depot officemax. gear up for school. gear up for great.

welcome back to "squawk alley." netflix, twitter, facebook and

yahoo all in the red. joining us now on the phone, sun trust managing director and internet analyst bob peck. so, bob, internet stocks have been getting hit hard. when i look at facebook, amazon, netflix, google, all of them still positive over the last three months. how are you feeling after especially the last couple of days of volatility? >> for market leaders going after large markets, strong, fundamental top line growth, improving margins, cash flow generation, strong balance sheets and hopefully some catalyst as well. leading the list, alibaba is a fantastic name only trading on 20 times earnings. a strong second half of the year, 15 times, 30% plus. and then google not only trading 10, 11 times, it has great alphabet coming up for

investors. >> what else do you have that now is a good time to buy alibaba, because there would be a lot of people who would say there's no entry point for alibaba, for badu, it's too risky. why do you think so? >> the general markets weigh across the markets and you have to weigh it as well as the rest of our stocks. a company that's been a dominant player, about $400 billion of total commerce annually and is growing that toward the trillion dollars or so with margins improving from the 50% level towards 60%. we just like it as it's a dominant market leader. a lot of investing outside china so it's growing its portfolio and then the catalyst in 2016 which we blelieve will be a big one. >> you did say an announcement was imminent. what do you say now? >> yes, so we put a note out about a week ago saying we thought the announcement was

imminent. they have a board meeting coming up we hear in early september, that first week. we're surprised we haven't heard anything yet. we think it's critical they get an announcement out if decisions have been made as a final leader and direction. the try >> it seems odd to say because the dow is still down 227 points, but we are at session highs. the s&p now down just 1. 5%. bob, we talked about flash crashes, is this a flash sale that we've had on stocks? is this an end of summer sale here? i mean, there's been quite a bit of buying coming in over the past several minutes. >> yeah, and we recommended investors take advantage of that, particularly the names we talked about, facebook, google and even alibaba. we haven't been recommending amazon trading around 70 times. we haven't been recommending

netflix. i think it's a great opportunity to go after this spot we talked about the strong fundamental growth and market improvement. >> bob, a day last week where we had a sharp reversal in the market. not of the magnitude we're seeing today but then we learned after that it was the busiest day for goldman sachs buyback desk it had ever seen. i'm wondering if the climb we're seeing in stocks right now and this sharp turn that we are seeing and the fact this a lot of these names that are on the rise are companies that have big buyback programs, is this corporate buying you're seeing going on? >> yeah, no. it's a great opportunity for corporate to take advantage of it as well. it's an opportunity for investors. >> all right. >> a way to use their capital. we like that. >> thank you, bob peck. a number of stocks just turning positive, yelp, intel -- >> thank you for having me. appreciate it.

>> go pro now up more than 2.5%. apple up 1 .75%. carl? >> major losses across the board. what does this midday buying mean and does it last? we'll talk about that in a moment.

♪ no student's ever been the king of the campus on day one. but you're armed with a roomy new jansport backpack, a powerful new dell 2-in-1 laptop, and durable new stellar notebooks, so you're walking the halls with varsity level swagger. that's what we call that new gear feeling. you left this on the bus... get it at the place with the experts to get you the right gear. office depot officemax. gear up for school. gear up for great.

really instructive list of names that are going green even as we speak. you sort of would wonder what investors would warm up to before any other names, and they are largely tech names. you mentioned apple and intel before the break. starting to see some biotechs, allergen, cvs. the afternoon will be a tug of war. >> interesting early in the morning when every single dow component except mcdonald's. >> investors deserve a break today. got to say i've never seen a day like this. we were down so far. now apple is positive. tim cook coming out and saying the fundamentals in china are strong on iphone and on the app. i've never seen a signal this strongly that, really, things are fine. >> a remarkable e-mail from tim

cook to jim krcramer this morni saying sales in china are accelerating. probably the most -- the freshest data from any company on the s&p. programming note tonight at 7:00 p.m. eastern, "markets in turmoil." all the information for asia tonight, the u.s. tomorrow. let's get to michelle caruso cabrera back at "the half." welcome to "the halftime report." i'm in for scott wapner. when a wild ride for the markets. the dow plunging more than 1,000 points at the open, then roaring back. right now we are at session highs on the s&p 500, the nasdaq and the dow. trying to make sense of it all today joe terranova, josh brown and steve weiss. let's get straight to the action with our three market reporters. bob pisani at the nyse, bert yeah coombs. bob, trying to make a big comeback here. >> reporter: some maav