track. things will even out. that would take us down to a million barrels a day production by year end. >> brian, i'll see you at 5:00 for "fast money." >> "closing bell" starts right now, folks. >> welcome to "closing bell." i'm kelly evans. >> i'm simon hobbs in for bill griffeth. >> this is the last trading day of what has been a volatile month for investors. today no exception. we'll follow every move for you. today is oil taking center stage, seeing a major rally. up more than 25% over the last three days. we'll take you over to the nymex for more details. >> ukraine clashes outside parliament today.

while everyone is focusing on china, a money manager who says russia and ukraine are the real wild cards for this market. he'll explain why coming up. >> facebook making big moves in the virtual reality arena with its oculus acquisition. apple to be looking to make a big move into the space. >> also ahead, netflix making a big bet on originals. ending its multiyear deal with epics. will "orange is the new black" and "house of cards" be enough to sustain viewership moving forward? >> we start with the big story of the day. it's oil spiking higher after the u.s. energy information administration cut its year-end output estimates. >> this is a huge move in three days. >> huge move. we went from being oversold to being overbought in a matter of three days. it really started with a lot of

shorts being in the market. those shorts got covered. there was a fire in oil sands project in canada. falling production in the u.s. that it's big thing there. and the chatter from saudi arabia. >> this seems like a huge move that has several explanations behind it. on a fundamental basis is this about production or just positioning and trying to fit the story to this sharp upward snapback? >> i don't know so much about positioning. it's basically just shorts covering. they are getting out right now. with the fracking business, with the shale business if we have any sustained rally to $50 or $55, those frackers come back online. it only takes a few weeks and a

few million dollars to set up a shale well versus a deep water well or another well where it takes millions of dollars and years to set it up. >> what about the opec angle here? you would regard talk on saudi arabia as chiter chatter. obviously someone at opec has written a report that says we should do more about where oil is. russia and venezuela are moving. you are not expecting any cut in oil from the cartel from what you are saying? >> here is what i see. opec had a quota of 30 million barrels a day in july. they produced 31.5 million barrels. they can't get their own production under control. and say let's cut production. opec is notorious for overproducing at this point. it's going to have to come from within them, december 4th they

have their meeting. i don't expect production cut because it seems at this point they weathered the worst part of it. at the same time, i expect oil to test that $30 handle again before the year's out. >> that's what we were going to ask. we'll leave it there. testing $30 again. anthony, appreciate it. >> let's catch up on the broader market which is cutting its losses. bob pisani has more on the floor. >> want to show you the s&p 500. we had the usual midday 1:30 to 2:00 swoon. we are not far from the lows of the day. off that right now. the important thing is we might get help at the close. there is a modest buy side imbalance on the market on close to buy stocks at the close. modest buy side. might get help. i want to pick up your theme on oil and show you what's going on here. exxonmobil is positive for the day. it had a huge gap down at the open with everything else.

this was $66 last week. we moved $10 in oil as you pointed out. let me show you what this means to an exxonmobil. we'll make $29 billion in 2014, this year will make half of that. $14 billion. every $10 change in oil, $38 to $48 will add $5 billion to exxon's numbers. if you go from $48 to $58, instead of $14 billion, exxon will make almost $20 billion. the difference is huge. it's even bigger on some of the smaller companies. this is eog. big exploration and production company. they gapped down here. remember this stock was $68 six, seven days ago. take a look at what a $10 change in oil will mean for this company. they are going to lose money this year. they are going to lose $300 million. but a $10 change in oil will add

$640 million to their bottom line. if we go up more in oil, they are going to make money this year instead of lose money. this is not some abstract idea. they can quantify exactly how much money these companies make if oil moves. that's why you get these sudden sharp moves in these stocks. they were all heavily shorted. not any more. back to you. >> thank you very much. joining us for our "closing bell" change today. ben, how do you see what happened today? how do they fit together? >> dangerous market when you have leadership again so singular in the energy sector. the trades we are seeing at princeton are the fact we are seeing huge short covering in the commodity itself which is causing short covering in the underlying. we loved energy for a long time. that is a place where investors

should be. we are seeing a sale going on in the restaurant stocks. >> you link the two? >> absolutely. >> not just restaurants under pressure. take a look at biotech names. celgene down almost 5%. what do you think is going on here? >> i think what we are seeing is the typical recovery post a waterfall decline in equity prices that occurred monday and tuesday last week. the analogs suggest you see a violent recovery in prices, followed by a continued chop that usually lasts weeks if not a couple of months which is setting up for the september, october seasonality feature of the market which are a tough time for equity prices. it's some time before we unwind this corrective process. we've been encouraging caution, being selective where we can. not necessarily going in full

bore. >> rick, what do you see in chicago? in the end, we are recalibrating. you'll see more of this. i love what brian sullivan said about an hour ago. we are currently roughly at the price of crude oil that's the inflation-adjusted price from the last 20 years. somewhere between $45 and $50. if you look at the last day of july for s&ps, we are 21 and change. we are flirting with 19 what right now? 19.73. 10s and 30z within two basis points. the dollar index at the end of

july was 97 1/3. you know what that tells me? interest rates haven't done much. they don't see a whole lot of change in the global economics. they see a lower glide path. dollar index is lower because more investors do not believe they are going to see a tightening in september, which leads me to the equity markets. great interview with steve liesman and stand fischer. they probably haven't made up their mind yet. what is ironic, in the old days we talk about six to nine month lags on monetary policy and now we are rolling the dice on two employment numbers and jobless claims? it's hard for anybody to get their gps. >> interesting you bring up the dollar and how it's softer. ben, what do you make of that? do we need a strong dollar? >> you are looking at intraday fluctuations. the tend will go higher as long as the belief interest rates will go higher. whether it's september or december, the dollar will move higher. one interesting trade you're

seeing is a great deal of pressure on the global equities while the russell 2000 continues to outperform those groups. if you invest, invest in america-centric companies. >> as we come towards the close of the session and the last trading day of a volatile month, do you take heart in the fact we are cutting losses here? people were saying we are in a situation like what we saw last week but that is not true. we are down 99 points. >> in a word, no. the fact of the matter is like i said earlier, given the analogs i looked at the past, it's common to see this upward and downward bias in the equity markets. not suggesting that the recovery has been put in. rarely are these situations flush and done. instead they take time to recover. i would not be surprised even if we finished up that there isn't

more selling to come yet and why we continue to urge caution on a near-term basis. we might see better levels to be more aggressive buying than where we are today. >> before we go, want to address as a follow-up the illiquidity you mentioned in etfs. popular way for people onto vest in the market. it took mellon this morning to deal with the repricing issues. >> what effect did the lack of pricing have to do on last monday's sell-off and volt tilt we saw on etfs? there is more to that story. >> it has legs, as we say. thank you. >> 50 minutes to go into the close. we are down about 105. at the low the dow was down 199. nasdaq close to giving up its gains for the year.

we are seeing red across the board. >> up next, apple's next mobile operating system threatens to shake up the $70 billion a year mobile advertising market. we'll speak to a top apple pro about what's driving the tech giant's controversial move. >> later, it's fisher on fischer. richard fisher gives us his take on comments made over the weekend by fed vice chair stanley fischer. find out if richard fisher thinks a september rate hike is on track. >> are they related? ♪ ♪ (dorothy) toto, i've a feeling we're not in kansas anymore... (morpheus) after this, there is no turning back. (spock) history is replete with turning points.

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with squarespace. i'm a senior field technician for pg&e here in san jose. pg&e is using new technology to improve our system, replacing pipelines throughout the city of san jose, to provide safe and reliable services. raising a family here in the city of san jose has been

a wonderful experience. my oldest son now works for pg&e. when i do get a chance, an opportunity to work with him, it's always a pleasure. i love my job and i care about the work i do. i know how hard our crews work for our customers. i want them to know that they do have a safe and reliable system. together, we're building a better california. you're looking at the nasdaq 100 heat map. broad-based sell-off. plenty of people who follow specific sectors like biotech are hunting around for a reason why the sector is so weak today. there is just a lot of weakness as crude is rallying significantly. in the past, we've seen those moving in the same direction. today a different story. >> apple is making several headlines today, announcing a partnership with cisco in the last hour. this morning the "journal" reported the next operating system will let people install

certain apps that block mobile ads which has the potential to disrupt the $17 billion mobile ad business. >> then there is a new report by analysts that the company could be walking on augmented reality. how should investors be reading all these developments? let's ask gene munster who joins us now. thank you, sir. let's begin with the piece that has everybody's attention this morning. it's the extent to which ad blocking technology is something consumers love, but what kind of impact could it have if this becomes a lasting real thing? >> apple it's a good impact. they can improve the user experience, more people will want to buy iphones. currently they block technology that allows you to block ads. they make it difficult. in the next version of ios, they'll enable that. what that means is just about 5% or so of people that use ad blockers today, it will be easier.

from apple's perspective, this is great. it allows you to have a better experience. from advertisers' perspective, it makes it difficult to get ads in front of people. >> if i try and block cookies, a lot of websites will say you can't play here, i've got to let us put the cookies in. won't they do that with the mobile ads? if you want to be on our site, i've got to let us put the ads on? >> they will. that will be the counterpunch to limit that. consumers have to decide whether they want to put up with ad to get content. you just nailed it the way this is going to, the way these two roads will cross. >> how much are people using the internet browser on the apple phone? if they are mostly using apps or moving in that direction, how much of an impact will this have across those platforms?

>> right now mobile browser's over half how people experience the internet on their phones. 55%, about 45% is on apps. that's been stable over the past couple of years. on the app side what they are talking about today doesn't change how we are seeing ads in app. this is on that 55% usage side of people's mobile internet experience. >> can you explain the deal with cisco? i read the news release. i wasn't any the wiser. it's about trying to get more corporations to use apple products because networking is better. presumably it's a different deal than they have with ibm to the same end. >> it is. ibm side is more on building apps for business applications. they are working with apple to help build apps. on cisco's side they are making it easier for corporations to network with ios devices. on a scale of 1-10, 10 being this is a blockbuster announcement, it's probably a one or two.

corporate market is still a small market. it's still probably not a big announcement. >> we are preparing ourselves for a discussion of augmented reality and apple. quite simply, what's the vision here? >> when we talk about augmented virtual reality, it's the next mega technology theme. the screen as we know it, the television screen, your computer screen, your phone is going to go away in the next ten years. there's some companies making big bets in that space. the company we focus most often is facebook. they have the oculus. that will come out next year. the augmented reality is the part that is more exciting. that is overlaying the virtual in the real world. imagine walking down the street and running into somebody and never forgetting their name. apple gets left out of the conversation because they don't have a lot of press around it.

in fact, no press. as we do more work around apple, we see they are actively doing r&d in this space. one could argue they do r&d in a lot of places. this is based on their acquisitions and they had a big hire from microsoft. this is a big area for apple. >> i get you say they're finessing their ability in fashion and wearables and that is a big deal to create what applications people can easily use. this is a question, not a statement. isn't augmented reality about the data you pull from the world around you? for example, google and google maps and advertisers and what's around the next corner and where i can get a cheap hotel night for this evening? >> yes. google will be a beneficiary. they are providing the data that will power the experiences. google corporate has an

investment in one of the most exciting companies on the private side which is magic leap. google is going to be a beneficiary. i think the wearable side will be a beneficiary, too. it's important apple is doing this. if they don't, they are going to be out in the dark in the next decade if they don't get on to this curve. >> it does seem like they are sticking with the screen with the tv coming out that. could be a big deal, under $200? >> it is going to be something more than they are doing now. will allow an app store in games. it's a start. >> and they have a ways to go to get away from the screen all together. i love thinking through it. thanks for joining us. >> the future is bright. 39 minutes to trade here this monday afternoon. currently down 136 op the dow, but way off the low we had at the beginning of the session. >> coming up, one money manager

explains why he thinks russia is the biggest wild card for markets right now. he says it's more dangerous than the middle east. so you're a small business expert from at&t? yeah, give me a problem and i've got the solution. well, we have 30 years of customer records. our cloud can keep them safe and accessible anywhere. my drivers don't have time to fill out forms. tablets. keep it all digital. we're looking to double our deliveries. our fleet apps will find the fastest route. oh, and your boysenberry apple scones smell about done. ahh, you're good.

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with all the issues plaguing the market, the one big wild card according to our next guest is russia. what do you mean by a risk?

are you talking to even the equity movements here in the u.s.? >> as you know, it's all about versus expectations. right now the expectations in people's risks around russia are not nearly as high as they need to be. if you asked most people what was the latest catastrophe of the last century, they would say world war ii, world war i, the holocaust. if you asked vladimir putin, he would say the collapse of the soviet union. he considers ukraine to be part of russia. he will try to reverse what happened in 1981. in my opinion, the markets aren't nearly as focused on this risk as they need to be. >> that all being said, people are familiar with the collapse of the russian economy, obviously with the initial complications that it creates for all sorts of relationships and power structures in the world, but how big an economic force and how much financial market contagion could there be

from a scenario, and what is the scenario you envision here playing out the effects couple of years in russia? >> so today we saw riots in kiev. 90 police officers injured around parliament with different factions going off against each other. it is highly likely that was provoked by russian agents who do not respect ukrainian independence. so the scenario is russian tanks rolling into kiev with pretext of providing stability or the pretext of oppression of russians in the ukraine. if you get russian tanks moving into kiev, if my opinion, you are going to have significant disruptions in the world markets. i'll have big impact on risk assets. big impacts on commodity prices. big impact on natural gas. frankly, you wouldn't want to be short defense stocks. >> we saw with the sanctions particularly in europe that

began to play out. my question would be the degree to which the west is willing to engage. if you think back, they shot a malaysian airline out of the sky. they buzz nato members down the border and there are very little consequences. there is no appetite to hit back hard with force, it would appear, from the west so far. >> that is the scenario people are playing out. that is what vladimir putin is playing out. he will be able to take the ukraine back the same way he took crimea. but they are all members of the european union and members of the nato. we are not going to react that same way if they reclaim estonia. remember they were part of russia from the time of peter the great. vladimir putin thinks they are part of russia today.

he doesn't respect their being part of nato. people are dramatically underestimating the chance of tanks rolling through this part of the world. >> that includes a lot of people in this part of the world. i happened to be with polish immigrants this weekend. when they talk to friends in ukraine they ask about conditions and they shrug and say, we are not too worried. are they being too complacent, as well? >> absolutely. i think your friends might be outliers there. i think the people in the ukraine are worried about russian tanks rolling. henry kissinger says since the days of peter the great, russia has expanded at the rate of one belgian per year. russia is always getting bigger. that is what russia is. they have never respected the independence of ukraine, estonia, latvia.

vladimir putin believes the disintegration of the ussr is the greatest catastrophe of the century. >> thank you very much. >> time for a cnbc news update with sue herera. >> thank you. here what's happening at this hour. a hate-spewing murder suspect goes too far and is ejected from his trial in kansas. deputies removing frazer glen miller from the court after he told the judge he has no respect for the system. miller has admitted killing three people at jewish sites last year, but pleaded not guilty and is representing himself. the jury is deliberating his fate. >> blue bell creameries resumed selling its product in select locations four months after it halted sales because of listeria contamination. >> a new milestone reached in the tsa's expedited security screening program. more than 1.5 million travelers are enrolled in the precheck. it allows low-risk travelers to

experience faster and more efficient screening at more than 150 u.s. airports. >> u2's lead rocker bono edged out paul mccartney as the world's richest rock star. in 2009 he bought a 2.3 million stake in facebook for $76 million. it's now worth $1 billion, raking in more money than his entire music career. and that is the power of the stock market for you and social media. >> you have to start off with $2.3 million you can invest. >> that is exactly what i was going to say. >> so a rock career is useful. or a career in cable television. >> yes, right. >> how about being a pro athlete? not a bad way to parlay early success. >> absolutely. he is a smart guy. i'm sure he watches cnbc all the time. >> hello, bono and thank you,

sue. >> i'm helplessly unhip. >> it's okay. it's the wrong generation. that's past. he just does apple events now. >> dow is down 126 points. this half hour could be critical whether we finish here relatively quiet to last week or in a more significant way, oil is the big story. s&p is down 17, nasdaq down 55. >> just to cover myself, i know the last set of concerts were great. >> up next on the program, a top trader tells us what he is watching in the final and most important half hour of the session.

26 minutes to trade this monday. the refreshing thing to report is we are cutting the losses here. we are down now 87 points on the dow. we were down about 150 a half hour ago? >> also we are only down 23 on the dow. we had a good day.

people are setting up potentially, hopefully, getting involved for towards the end of the week where we will see a lot of activity. we see a little bit of a rally today over the last 20 minutes or so. that's just laying into the close. >> i should explain the context which we are operating. our theory is we'll get orders to sell. >> we see what the imbalances are. imbalances are solidly to the buy side. not large though. >> thanks, peter costas. >> it is the last day of the month. according to data it's been a busy month for 401(k) investors. it did find activity spiking. after that sell-off monday august 24th, activity was seven

times the norm. for more let's bring in our retailer round table. thanks to all three of you being here. charlie, did you buy or sell this sell-off? >> it's been quite a week to be an investor, let alone a young one. during this correction period, i'm looking at this as an opportunity. as an opportunity to go after stocks that i think might go down in the natural correction trend, but i think that would be more stable moving forward. one of those stocks in particular is american airlines. they have potential with the new merger going through and expanded fleet. i think they are going down just because of the natural correction momentum. i'm looking at stocks like that

to reinvest in the short future. >> you're buying american airlines. caylee, what was your reaction to all the volatility? what names were you buying into it? >> so we are not day traders or anything like that. we are looking at the long term value plays. we weren't making trades last week. really looking at the market to see what in the future would make potentially good moves for us to build that return on our portfolio. one of the names i was going to mention was american airlines, as well. they are definitely benefitting because they don't have to hedge their fuel bets. they haven't signed a hedging contract since 2013. that is one we are looking at, as well. we are already invested in it. are potentially looking to expand that investment as well as our investment in citigroup. they've done a spectacular job shoring up their business in capital ratios ahead of their peers in our view undervalued. >> oliver, what have your moves

been? are you focused on american airlines, as well? >> not quite as much though i think the last speaker had a good point. we are looking at a couple of years in my personal investing activities. i'm looking at long term trends, energy, housing, tech. now is the time generally for me to stand pat, not panic, but also to look for opportunistic adds. one name i like is sun edison. it's been hurt badly the last couple of weeks. if it gets into the high single digits, it becomes a long-term play. i like renewable energy. energy is having a good day today. over the next couple of years i like that name coming back because their development pipeline is undervalued. >> oliver, you mentioned alternative energy sources. do you like the traditional oil and production space? >> it's not the space i spend a

lot of time in myself personally. today has been a good day for those who hold it. i think there is a lot of volatility. i like renewables over time. >> kaley, how do you view the stock market overall? it's been a turbulent few years for a lot of people. you're interested at a fairly young age. what have and your colleagues and your cohort think about the stock market in general? >> sure. obviously, it's a very volatile, especially when you start investing in other regions. we are focused on investing in the u.s. markets. we saw a big down turn last week in china. long term we still definitely have a bullish outlook. the u.s. market is for the most

part doing well. the economic numbers coming out. this week will be a huge week in terms of the economic data. we are watching it closely. overall, we are still optimistic and still very much invested in equities. >> do you stress about interest rate rises like we do? >> it's something we are not predicting as much any more. we've been following it very closely. i think our guess is as good as the next person's. it's a lot of skepticism over potentially a rate hike in september. at this point, the market is so volatile, it's hard to predict. we are definitely making plays that we think would been fut from a rate hike like citigroup, for example. >> guys, thank you all. 20 minutes to go into the close here. dow is down about 105 points. we are watching to see if we are going to have the nasdaq come below its break even line for

the year. it's down 1% or 50 points on the session today. s&p giving up about 15. >> some high-profile movies will no longer be shown on netflix next month. we'll discuss whether the streaming giant's original programming is enough to sustain netflix' viewer growth. >> later, former dallas fed president richard fisher giving us his take on inflation and the role it's playing in the fed's decision on interest rates. whehe trusts onlyon duracell quantum because it lasts longer in 99% of devices.

dow down 90 points. twitter gaining ground after falling below its $26 ipo price last week. suntrust upgrading the stock to buy from mutual citing good things on the horizon. amongst them, they say the new ceo and some product launches and partnerships that they argue could ignite user growth and revenue. amen to that. >> shares getting a bid up 3.5%. netflix, different story today. focusing more on original programming. "through our original films and some innovative license, we are

building a better experience now." >> is exclusive original programming enough to sustain the viewership growth they need around the world? mark mahaney joins us. you did some survey work on this recently suggesting that to some extent they are overachieving. my question would be did, they walk away from a deal with epics or were they outbid? is this a symptom of a bigger war going on? >> well, we don't know is the direct answer. the chances they were outbid by a subscription competitor this had 1/10 of the subscriber base is highly unlikely. i take their word they walked away. they are making a bed they can replace that content. it's good content. they can replace that with original or exclusive content. they have a series of titles

coming up next year. disney titles, adam sandler titles. we think they've been good so far so we stick with the stock. >> does this mean ultimately the universe of netflix is shrinking it from being the entire streaming media space to one channel and perhaps being valued as such? >> i think so. i think they want to be a broad, nonexclusive retailer of video. absolutely. for the last couple of years, they've been signaling they are going to invest more of their spend to original content. next year they said they would spend about $5 billion procuring, buying, developing content. some they will acquire exclusively and some from broad distribution bases. they've got a lot to spend and are trying to make more of that special to netflix and make this hbo on internet steroids long term. >> am i correct saying you publish the survey at the end of last week?

it was a quality survey how high you thought the penetration would go. >> that is right this. issue today is much more of a u.s. market issue. the two key numbers, one is 51% of subscribers thought all-in content improved. and 37% netflix subscribers were just watching original content on netflix. we are seeing the trends move in their direction. so far they've gotten it right. >> i'm trying to move towards the $140 price target. i think the conclusion you had was they'll get to a much higher subscriber base around the world because of the penetration, correct? >> yes. in the uk they are at 30%. where they are in other markets, it's 10%, 15% are looking at

these surveys, particularly stock reactions in the brazil market add and uk market. we think you have to believe that to buy the shares here. we do, we're buyers. >> thank you. only 12 minutes to go. stocks off their lose. dow was down as much as 199 points. currently down 80. s&p down 12, nasdaq 44. >> up next on the program, danny hughes makes the case for energy and material stocks. when a moment spontaneously turns romantic, why pause to take a pill? and why stop what you're doing to find a bathroom? cialis for daily use, is the only daily tablet approved to treat erectile dysfunction so you can be ready anytime the moment is right. plus cialis treats the frustrating urinary symptoms of bph, like needing to go frequently, day or night.

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less than ten minutes to go. markets holding on to a decline of 82 points. art cashin indicated there is $82 billion to buy on the close. it has pared off. >> it's been a historic week, hasn't it? it was such an opportunity, i think. even though everybody expected it, nobody expected it to happen that quickly. we always say elevator down,

stairs up. we looked at names we were looking at that were a little overexposed. disney, for example, was a great buy last week. a number of other energy names were really great buys because of their yield. we took some opportunities last week. >> what about the yield in particular on a lot of these energy names? we had transocean, we had others spend their dividend. concerns about viability maybe diminished by this 27% rebound in crude oil prices. how much of the investment is predicated on crude continuing to rebound? >> i think some of it has to be. if you're a long-term investor, you'll understand oil will come back up. that it's bet we are taking. it's an educated bet. you have to look at companies that have a track record paying out their dividend over a long time. royal dutch shell, 45 years of dividend history never cutting a dividend. things like that lend itself to those ups and downs of markets like in the '80s and they never

cut their yield. >> what are you avoiding? what are you selling? >> we haven't been sellers in this market, as a matter of fact. we have been avoiding tech names. >> which area of tech? semiconductor, social media? >> social media, for the most part. facebook took a nose dive after almost hitting 100 points. it has to find its spot in here. i am long facebook and will be over the long term. things like twitter. >> what else is on the list? have we missed the moment. if investors didn't get in last monday at the close, is the window closed? >> no. there is always another window. china remains to be seen. that's what the opening for this blow hole was. what could happen in the future, they could smash into earnings globally. >> you think there could be another correction? >> there's always another opportunity. >> near term on the set of agenda we have? >> it's august. people are sleeping. there is nothing going on these

next two weeks typically. we'll see more players come in. >> okay. >> thank you, dani. before you nip off for a small sleep, we'll come back with the closing countdown. >> after the bell, john sculley speaking with us in a first on cnbc interview. he wants to plaster emerging markets with a lower-cost smart phone. will consumers buy them? here at td ameritrade, they're always working. yup, we're constantly making thinkorswim better. like a custom screener on your desktop, that updates to all your devices. and you can share it with one click. wow. how do you find the time to do all this? easy. we combined every birthday and holiday into one celebration. (different holidays being shouted) back to work, guys! i love this times of year. for all the confidence you need. td ameritrade. you got this. from bank of america to buy a new gym bag. before earning 1% cash back everywhere, every time

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heading back down in the market the last few minutes of trading. down over triple digits. a move of about 30 points in about a minute's time. >> the most important thing about today, we did get a mid-day droop 1:30, 2:00, we didn't get the big droop between 3:00 and 4:00. orders to buy sell at the close tilted heavily to the buy side. better than $1 billion to buy. generally 300 million to 600 million to buy or sell, that's normal and not statistically significant. when you start getting at $1 billion around that area, that's when people sit up and take notice.

it's statistically less likely you'll have a droop at the close. not always infallible. when you get a number big, it tends to indicate direction. >> in terms of direction, last week wasn't it all orders to sell? >> that's right. that was a major problem. >> you're not talking about redemptions or whatever reason you're disrupting orders. we turned that corner today. >> monday, tuesday and wednesday we had very large market on close to sell orders. numbers that were holy moly, these are big numbers. that was a major problem. when traders saw those negative numbers around 3:00, you sell ahead of it. what you want is things to be boring. >> you are saying we want the last hour of the closing day to

be the most boring? >> no but when you have a situation where people are looking at these numbers and selling ahead of the numbers, it creates -- >> i'm joking. >> it gets chaotic. we want less chaos. >> our chart of the session. >> the important thing is the vix moving in a narrow trade. we were moving in 15-point moves on the vix today. that is a two-point range. we went from 13 to 53 to 23 on the vix. this is an indication that people are not freaking out or you would see this spiking up dramatically. what we saw thursday when the s&p moved two percentage points in 45 minutes, all the shorts covered. it blew out all the shorts.

when the dow moves 2%, it doesn't do that in a year. right now not a lot of meat. >> "closing bell" continues now on cnbc. >> thank you. welcome to "the closing bell." i'm kelly evans. here is how we are finishing up the session. last one of the month. dow going out with a decline about 116 points. s&p giving back 17 and nasdaq down 1%. it's up 27% the last three

trading sessions. plenty to dig through. we have michael santoli from yahoo finance and sara eisen. and "fast money" trader tim seymour. tim, let me start with you on crude oil. what is going on here? >> when long positions have been eradicated as much as they were if you read data, the biggest three-month reduction in net longs in in brent futures is something we see play out. the opec comments today were the most important thing. you had them saying we are ready to come to the table and talk to market where is there a level playing field. if you are a little bit short, that will scare the heck out of you. they indicated they are a little concerned about the investment in oil infrasfructure and future of oil where people are not investing. these are the things people want

to hear. positioning was so extreme, this is where you are. the thing to ask yourself about oil today, are people saying this is an implication where growth is now that oil prices are up 27% in three days? that's what people were saying about growth. >> let's give everybody context to the month we lived through. we had about the worst month in three years. down 2.36%, the worst month since may 2012. the nasdaq down almost 7%. vix turning in its biggest monthly gain ever. more than doubling in august. up 132%. that data goes back to 1990. it's significant. as much as things feel calmer today maybe outside the oil pits, this was anything but a calm month for stocks. >> without a doubt.

actually, the market finished trading heavily. a couple of fairly weak rally attempts. if you are looking for the clues inside, the outperformance by he emerging markets, small caps, lift in energy, it seems like countertrend moves that maybe are good. on a whole, i do think you don't want to see the vix rising on kind of a sluggish down less than 1% today. it shows the market hasn't hit that stability would you like to see for an all-clear. >> the other interesting thing about today's trade was the breakdown in correlations. when energy popped, did you see the market follow and the s&p briefly went positive and lost its momentum which didn't make sense anyway. people thought low oil, cheap gas prices, good for stocks. this breakdown is something to watch going into september. this was a month where stocks really took center stage. the dollar fell a little bit, treasureies rallied a little bit, but the reaction was in stocks. it was brutal in the u.s., but china had a 12.5% move down for

the month. it was its third decline in a row. the hang seng was down 12%. >> that is going to make pmi as they are known, gauges of manufacturing activity which will come out the next 24 hours or so for all these different countries all the more important. let's get out to dominic chu with a recap how volatile a month this has been for these markets. >> you went through the numbers there. let's reiterate some of the items you said here with regard to them. we had multiyear lows. august 2012, may 2012 you look at the major indices. the dow industrials, one month down 7%. we are out of correction territory for the dow. if you look at the nasdaq composite, we are down big. some of the worst losses we've seen in years. still where the damage has been significant.

i would point out in the s&p, this volatility comes after we saw the s&p trade in one of the tightest ranges we've seen in a while. just before the drop off between the top and bottom, 60 points. that was the range we traded in. we fell 233 at an intraday basis. if you look elsewhere in the market where some of this volatility manifested itself, check out what's happening with the sectors overall. telecoms, utilities, energy. the relative winners, energy was a relative winner here, especially begin the fact we saw oil prices spike the way we have the past few days. a 27% gain in three days. utilities and telecom, two of the dividend-paying sectors. the more defensive leading the way higher. as for losers, health care one of the biggest winners the past couple of years was the biggest decliner. biotech not helping the cause there. financials an interesting story

there. the second biggest sector in the s&p 500. consumer discretionary down 6%. the cboe volatility index, over the past year-to-date, you can see that huge spike there. we got close to around that 50 level. we've begin some back. some of the biggest gains we've seen, the biggest month gain for volatility over the course of when records have been kept going back towards 1990, but to put a lot in context, remember that oil price move was huge. 27% in just three days. that's a massive move higher. we'll keep an eye on september and see if it shows that bid of volatility. right now we are seeing at least in august that some traders will want to forget. >> great perspective. thank you. we had about 250 million on the close. it was due to month end repositioning. september, which we are about to

head into is historically one of the worst months for stocks. we have a look at which companies buck this trend. is that right, deirdre? >> that's right. just picking up on what you were saying, volatility may not be set to end. historically august and september, worst months of the years for stocks. in terms of playing the so-called september swoon, we did look at the stat with helps of our partners at kensho. autumn is for amazon and not apple. you may think back-to-school and work means new computers and gadgets, but apple has been the worst dow component when i average out its performance over the last 25 septembers. four of the past five years it's been down on the month. here is a disclaimer, because apple has seen big gains over the summer. perhaps the pullback can be chalked up to profit-taking. keep in mind this summer apple stock has fallen more than 10%. it could be different this year.

historically solid tech bet has been amazon. 14 out of 18 years and returned on average 8%. the tech sector is tough to play in the autumn, trading positive only about half the time and typically underperforming the already-beaten down broader markets during this month. back to you. >> thank you, deirdre. we have a lot to dig through here what about tech? there's a lot of news coming up. what about september? does it matter that it's i traditionally such a poor month? >> i don't know it matters all that much. the seasonal stuff has not been that great the last year. the all these things haven't worked. the big question is how much have we front loaded september's weakness. to me the question is in the next two, three weeks we'll get beyond the fed the corporate earnings preannouncement season. that's when you want to see whether tech and the rest of the companies can perform. >> august is historically weak. if you look back at the last few

years, august has been a pain point. in 2011 was the downgrade of the u.s. in greece. we saw 3% and 4% swings. in 2013, august was down 3%. that's the year the market rallied 30%. you can say seasonals don't matter that much. >> i'm not saying they don't matter. just people don't want to step in front and say that was the low last week. >> this is an unusually uncertain september going into this fed meeting. we could get the first interest rate increase. there is an interesting debate developing whether that's good for the markets or bad. i think the narrative changed. >> stocks and risk assets moving from the hands of people scared the fed will break something to those who think it's not a big deal. >> by the way, for people who aren't just looking at the calendar effect tomorrow, what

data is going to be most significant as to whether we are putting in a bottom here? >> the payroll number friday is probably the most telling number. the chinese data, people think as the growth data. august 2011, the analog, we had a big rally to month end. we had that. some people set up for slaughter in september when there was uncertainty. volatility has been so spring loaded. we haven't gotten through all the anxiety. china data, payroll data friday, that is about the fed. the fed off this weekend tells you they are still in play. they are going in september. >> we'll see. stick around to catch him with the "fast money" crew at 5:00 here. they'll be asking mohammed el-erian why he thinks this is a perfect storm for crude oil. call it the smart phone slowdown. consumers are buying fewer

devices. manufacturers and suppliers are getting hit. it's leading to lay-offs. former apple ceo john sculley is going the opposite way making a big bet on the affordable smart phone space. first, tomorrow the first day of september and federal reserve vice chair stanley fischer says a rate hike could still be on the table. we'll hear from richard fisher. (vo) me? i don't just wait for a moment. i watch for the perfect moment. the one nobody else sees. and when i find it- i go for it. (announcer) at scottrade, we share your passion for trading. that's why we give you the edge, with innovative charting and trading features, plus, powerful mobile apps so you're always connected, wherever you are. because at scottrade, our passion is to power yours.

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all eyes on the big economic data this week. leading up to friday's jobs report. is there a look what we can expect through friday. the service sector pmi, and friday morning the biggie. the big question is which data points could impact the fed's decision to raise rates this month. here to help us decipher is richard fisher, former president and ceo of the u.s. federal reserve bank of dallas and cnbc contributor. good to see you again. let's just start which top level data? which to you is most important

here? >> the vice chairman, the most authoritative person to speak stanley fischer spoke about this saturday in jackson hole. he said the nonfarm payroll was a key number. of course that's been progressing at about 235,000 a month. so that's a key. the ism number for manufacturing since 1948 has been the most reliable single indicator whether or not we are expanding or contracting. for the last seven years we had a service sector index coming out of ism. that's going to be added in there. those are the key variables. the personal consumption expenditure and the core. you can't wait until you get to

2% before you achieve lift-off. wait until that number is achieved. i think september is on the table very clearly. he put it squarely back on the table. he is the most their taest aut k speaker we had. >> how can the fed actually demonstrate that short of actually moving in september and showing with some language that it's not going to do anything else too soon? can it massage market expectations enough before it actually moves? >> actions speak louder than words. the words have been expanding over the ten years i served from 250 to 950 words. we have a press conference by

the chair. you can use words but i think they'll have to show it. the most likely way, which i would have advocated were i at the table is move in september then sit for a while. and the slow and gradual thesis which has been widely debated versus wait till later and move radically. slow and gradual is the dominant thesis among all the members. that is the likely scenario. move whenever it is, september, october or december, then unless you get a radical change in data beings take your time to move again. >> as you know, the imf told the fed to wait until next year. so has the world bank. what do you say to critics of the federal reserve who say there is a dual mandate on the american economy but they have to be mindful and aware of the international spillover of fed policy.

>> add to your list the bank of china came out with a statement which was surprising. so did larry summers. as far as the imf and world bank, i'm sure congress loves to hear them give orders to the central bank of the united states. ditto for china. for that matter, ditto for larry summers, the brilliant economist whose viewed being in line with the clinton camp. these are not helpful voices. there is a deliberative body that meets called the federal open market committee. they do their level best to get it right. they are not going to answer to outside sources. you focus what's in your view best for the real economy of the united states. >> can i ask what's happening in your home district? there's been disappointing readings on economic activity. the oil prices bouncing around. things look serious in terms of

slowdown down there. >> i haven't seen that. the only down turn in employment was in march. 11,200 jobs. since then the job rate growth has slowed down. it's still positive. north texas which is dallas and that area north is booming. unemployment rate in midland, texas, which is the center of the hydro carbon output of the state is still at 3%. houston's been set back. it's still positive. we have a very diversified economy down here. that's the real proof. this isn't the '80s all over again. it's not totally dependent on energy. it is very much diversified and the numbers show it. it's a slower rate of job growth but still very positive. in north texas real estate and those assets are exploding in price. rents are going up. buildings are being built everywhere. if anything, i'm worried we may be overdoing it from a construction standpoint in

response. >> that would be the case if there is a slowing. thank you, richard fisher, joining us in the context of where you are and what the fomc may do hear. appreciate it. >> bears driving emerging markets. that is about to change. he timed the drop earlier this year but saying the fed could turn those markets around. first, the race to capture the lower end smart phone market. it's been a hot one. now seems to be slowing down. companies like blackberry and microsoft cutting jobs as smart phone demand declines. that is not discouraging john sculley. he'll join us with the latest model of his affordable smart phone. ♪ isn't it beautiful when things just come together? build a beautiful website

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welcome back. there is a slowdown in the smart phone market. it's not only hitting bottom lines, but hitting the jobs market. microsoft, qualcomm and panasonic cutting jobs. john sculley sees an opportunity for his new mobile devices. joining us is john sculley, the co-founder of obi world phones. welcome to you. >> thank you, kelly. >> why do you think this is a time to go big in a market that appears to be maturing? >> it's actually a very interesting time. if you are building a design-led company and silicon valley is known for that, companies like

tesla, apple, beats, all built beautiful products, but at the high end of the market. why not take beautiful design and target the low end of the market where growth is really occurring in the fastest growing countries around the world? yes, it slowed down in china. 1.2% growth. yes, there are lots of lay-offs by many of the big traditional companies. they have outdated business models. we are doing it with a lean business model. we launched our phones last week in silicon valley. people were amazed how much technology we got, $700 comparable products $499. >> let's show your product. we can compare it in terms of look and appearance to the apple iphone. the iphone goes for upwards of $700. how much does your phone cost and which emerging markets are you selling it into? >> sure. let's get a perspective. apple is alone at the top 0.

no one comes close to competing with apple. they have 90% of the profits in smart phone industry. the traditional other players, samsung or htc or sony or microsoft, they are hemorrhaging losses, laying off people because they've got outdated business models. thousands of people in these organizations. what we are able to do is price at $199 for our 4g lte phone equivalent to $700 phone in terms of technology. we look nothing like an iphone. we are not trying to compete with apple. the former head of apple design who worked with me for years led the design team. they formally did beats and brought them over to do the obi world phone. it's an exciting launch and amazing reception from the countries around the world. we are going into vietnam, south africa, nigeria, bangladesh,

pakistan, turkey. >> i'm not surprised to hear you're doing this. you've been calling on apple to make a lower-priced phone for a long time. i know you were preparing a bid for blackberry and decided not to auction itself off. how are you making such a cool design phone for under $200? >> we'll make money. let me go back to blackberry. we were asked by the canadian government. we were amazed they had 7,000 people in the field organization for their handset business. i turned to the head of our

asian supply chain. we have a billion dollar business in singapore. i said how many people do you think we need to reach the world? he said, well, probably several hundred. not many thousands. we started to look at it seriously. we saw we could dramatically lower the cost by going directly to the best component vendors in the world, sony, qualcomm, corning, samsung, and put in the best quality components we knew how to design software and hardware together because we learned that at apple. we said we will go in at a much lower price point. $199 for the 4g phone and $129 for the 3g phone. we are able to do it with no compromises and make a profit. >> let us know how it goes. thanks for being here. >> thank you, kelly. >> john sculley. time for a cnbc news update with sue herera. >> here is what's happening at

this hour. the state department expected to release roughly 7,000 pages of former secretary of state hillary clinton's e-mails at 9:00 p.m. eastern time tonight. included will be 150 e-mails that have been censored because they contain information that has now been deemed classified. they will post the documents on its website. >> state-controlled media reporting an explosion shook a chemical plant in an eastern chinese province. no immediate reports of casualties that. photo is from china's people daily twitter feed. >> three people killed and six seriously injured after an explosion at a fireworks factory in north eastern spain. the cause of that explosion is unknown. the blast was heard in a large part of the city. >> the annual list of the top stolen vehicles in the u.s. in 2014 is out. at the top of the list, the honda accord. more than 51,000 of them were stolen last year. second place, the honda civic followed by the full-sized ford

pick-up. that's the cnbc news update. >> that's a scratcher, the ford pick-up. >> that is a hot guy car. >> you can sell the parts. >> you know a lot about breaking into automobiles. >> sorry. >> the honda accord. thank you, sue. one advisor called the drop in emerging markets two days before they started to plunge. the stocks are still struggling. he is saying it's time to start buying. we'll tell you where next.

welcome back. there's a look how we finished on wall street today. it was red across the board. it was really crude oil that had everybody's attention. that 6% rally today not only put it within spitting distance of $50 a barrel, it's a 27% rally over three trading sessions that is the sharpest in 25 years. it's been quite a month for stocks and oil and a number of market strategists upgrading their targets for the year. dominic chu has more from cnbc hq. >> let's set the stage with the

charts overall from month-to-date basis. you saw the daily moves here. the dow industrials, nasdaq composite s&p 500 all down between 6% and 7% on a one month basis. a rough move overall for the s&p 500. we did say they moved out of correction territory. that is plus or minus 10% mark there most these moves have now are are factored in. the median target price among analysts and strategists we survey here puts the s&p year-end target at 2,211. that implies about a 12% upside move from here. the high estimates remains. they say 2,325, the most bullish analysts we target here at cnbc.

the lowest estimates come from barclays. both see 2,100. a more modest move from current levels here. as you take a look at what's happening here, oil will be a part of this overall equation. just to give you another idea on a one-month basis, we are up 2%. between the end of july and the lows we saw, we dropped nearly 20% thereabouts and rallied now 27% intraday today about 24%, 25% to close just to get back to positive territory for the month of august. a very volatile oil trade. people say short squeeze. jackie deangelis has been reporting a lot on the floor over there. that oil trade will factor into what happens in the coming quarter. >> thank you. we have been watching china and emerging markets closely during the past week. my next guest says the crisis

will delay the rate fed hike and investors should position themselves accordingly. welcome. >> thank you very much for having me on the show. >> a week ago, people would have said you're right. there is no way they can raise rates. look at these markets. today everything does feel much calmer. are you still convinced that the fed won't raise rates if there is a crisis to come in emerging markets? >> i think the fed's absolutely desperate to raise rates if they can. i think we saw that at jackson hole from the commentary. i'm just afraid the market dynamics are not going to let them. i'm not sure we'll see the stability you need. they were heavily spooked by the events we saw heading into jackson hole. i'm afraid what we see now could be a precursor. i'm personally, i wouldn't be betting on it. >> why and what was it that led you to foresee this drop in emerging markets? is it because you look at this

commodity move through the lens of a bubble? who or what is in charge here and through what prism do you understand there will be more volatility ahead? >> i think we've seen a number of emerging market crisis. they usually occur at periods of intense dollar strength. i think, unfortunately, this time is different. different in a bad way. we have to provide the world with substitution reserves so their gdp can grow. she has to pay for those in dollars. we supply those dollars via importing goods from abroad or exporting capitals to buy investments overseas. the big thing that changed structurally has been emergence of the shale industry in the u.s. it's structurally changed the current account and leaving the

world short of dollars. that is the problem we are having. >> that is an interesting theory. it's one i tried to bring up with richard fisher. he said outside sources weren't helpful. in terms of this dollar move at its threat, is the currency market, isn't it pricing in an interest rate hike from the fed? and therefore, how much more damage do you really foresee from one interest rate hike this year to the dollar and to emerging markets? >> we are pricing it in if you look at the forward curves. i think this fundamental difference is it's not necessarily the price you have to pay dollars. it's physically the ability to get those dollars. that is where people are necessarily thinking about. supply is the most crucial problem.

their currencies are still falling. >> at some point, i wonder if the emerging market equities markets get cheap enough you can kind of close your eyes who these things and they price much of this in. could we see where it pays to rebuild risk in that area? >> absolutely. i think there is going to come a point. the big difference between '82 and '97 and today is that the u.s. economy isn't as robust as it was. this emerging market hurts here and we are seeing some signs in the manufacturing sector. then i think it will result in the fed having to resort to more qe. sounds like an awful thing to say. that's write think we go. >> if you could boil it down to the most and least vulnerable equity markets you see? >> the ones we see as the most vulnerable are the ones in southeast asia. they have been supported by strong currencies and the we

think the marimbi will weaken. some of the commodity currencies, their markets, i'm thinking soon if this oil move is starting to base, you should start to see a pick-up there. i would be tempted to play those southeast margins against longs in brazil and other countries. >> thank you. a market flash on sun edison. >> this solar company has been taking a beating over the course of the past year-to-date period. stock is down significantly but up after hours on about 2.5% to the up side. 316,000 shares traded after steve cohen, the head fudge giant whose family office reported a 5% passive stake in

sun edison as of august 28th. shares up on that bit of news. a stock that has taken a big beating. there are notable hedge fund names part of the investment community invested in sun edison. they were as of june 30th. the last time regulatory filings were made, including david einhorn's green light capital and glen view capital. big hedge fund and investment names that are part of sun edison the end of june this year. steve cohen's point 72 takes a 5% stake in sun edison. shares up 3.5%, 380,000 shares worth of volume. >> thank you. the term subcontracting may work itself out of the the home building lingo due to a new ruling that is about to get more

complicated. we'll explain. >> there is a new start-up promising to fully charge electric vehicles in record time. we'll chatalk with the chief executive later. you can't always see them. but it's our job to find them. the answers. the solutions. the innovations. all waiting to help us build something better. something more amazing. a safer, cleaner, brighter future. at boeing, that's what building something better is all about. ♪

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the hook for issues involving subcontractors such as labor violations and union negotiations. the nlrb which declined a request for an interview in a release says the board's previous standard failed to keep pace with changes in the work place and economic circumstances. while the ruling covers all employers from fast food companies to health care to high tech, it's particularly profound for the nation's home builders. they rely heavily on specially trade contractors like roofers, electricians and framers. they are call it from unnecessary to saying it's crippling. builders cannot fight the ruling until there is a specific case brought against them. i did speak with the ceo of lennar. he says he thinks his business is highly differentiated from this case, but he admits he is alert to the ruling and watching it. >> thank you. bringing the panel in here. this specific ruling had nothing to do with the builders, right? >> this ruling did not have to

do specifically with the builders. it was entirely another case about a recycling company. it could apply, not just to builders, but across all spectrums. talking about franchises and mcdonald's or even uber. >> how would it manifest in terms of increased cost or liability they are concerned with? >> what the builders associations are telling us that entry liability. more paperwork having to figure out which subcontractors are working maybe a day here, a day there or who is working for months at a time for a builder. sometimes a subcontractor will work for lennar one day or pulte. others are saying this could be brought against all subcontractors. there are 25 separate speciality trade contractors that work for your average builder. >> anyone who had experience with any housing project knows

how many there are. it's a complex project. there is much more information on realty check. appreciate it. talk about a fast fill-up, charging electric vehicles in just five minutes. we'll talk to the ceo next. >> later, the shanghai index falling 21% over the last two months. the chinese government is looking to make some people the fall guys.

welcome back. 6% jump in crude. how about 27% gain? that's what we've seen over the last three trading sessions. it follow as sharp downward draft all summer. israeli-based company is using existing charge in batteries to fully charge cars in five minutes. in today's edition of "the spark" we are joined live from tel aviv. welcome to you. >> thank you. >> we are all ears. to understand how you can fully charge an electric car in just five minutes? can anybody do this if they buy

the equipment today? >> no. not today. today we are demonstrating it in our lab. basically, we developed a new generation of the battery with a new chemistry and new materials. this structure enables very fast charging. >> and would this be technology that ultimately helps companies like tesla, anyone with an electric vehicle, maybe get more people interested in coming into this market, or is this a rival somehow with what they're working on? >> no, it's exactly as you said. this is basically enabling the market to take on people who have anxiety that they won't have enough mileage. if the experience is going to be exactly like fueling just without the fumes, it will enable all drivers to adopt an electric vehicle. bmw just announced today that in a decade all the models will be electric. so this is a trend that everybody's taking.

and we are basically demonstrating in our lab the possibility to have this charge in a minute. in a minute or two. to be able to go and drive your car. >> conventional wisdom has been that advances in battery technology would not really be as rapid or as predictable as they are, let's say, in computing and semiconductors. what's changed? it was supposed to be that chemistry didn't move this fast. >> no. so we are using the chemistry that is used in lithium ion batteries, but we are developing new molecules that enable the fast movement of ions inside the battery. we've actually started in the smartphone domain, where we are demonstrating one-minute charge of a smartphone. and we are leveraging this same technology into the electric vehicle market. so basically, we are not saying anything new. we are just showing how it can be done fast. >> doron, even with a successful

product won't you need partners to adopt the battery technology? have you signed on any major automakers or smartphone makers to start using it? >> so we are in testing with 6 out of the largest 10 smartphone makers. in the electric vehicle business we have not found the partner yet, but tesla would be a good partner. bmw. all the others that are interested in fast charging. we can work with them. >> how soon before this product is commercially available, doron? >> so anything in the automotive industry takes about four to five years. so we are looking at 2020 as the potential launch of an electric vehicle that launches in five minutes. >> 2020. i was hoping you'd at least get maybe the smartphone one out before that. i know i could certainly use the one-minute charging technology. thank you so much for joining us. >> this will be much faster, yes. >> doron myersdorff.

he's the cref storedot. thank you so much. be sure to check out much more. cnbc.com/thespark. people are quick to blame billionaire bankers and big banks and billionaire investors for market volatility. but china is taking a different approach. we'll get you those details next. keep it right here. you're watching cnbc, first in business worldwide. ♪ ♪ isn't it beautiful

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welcome back. china pointing fingers at not just investors but journalists and regulators too for its recent stock market turmoil. eunice yoon joins us from beijing with the details. >> chinese authorities are stepping up their efforts to punish those who they suspect of destabilizing the stock market. the china chief of hedge fund manager man group was taken away by police and reports say she's assisting in a investigation. man group pr wouldn't comment on those reports, but she could be the latest to be targeted in an investigation involving the stock market. the authorities have already detained one financial journalist and one regulatory officer. they're also looking into four senior executives at a top brokerage firm called sidic. the confession of the financial journalist was already put on national tv, and in it he confessed to creating fake news and apologized for having a negative impact on the stock market. now, the point of these investigations is to stabilize the market, but some traders say

they feel paralyzed by all of this and in fact they feel it's going to create more uncertainty in the stock market instead. eunice yoon, cnbc, beijing. >> our thanks to eunice. it is a big deal whether there's confidence enough in the chinese market to stabilize it, right, mike? >> well, there is, although i wonder how much it matters that the confidence extend beyond the chinese borders at this point. it probably matters for global investors but for purposes of the chinese government they're probably happy just to kind of keep the story straight internally. >> sarah? >> i would just watch a few key dates. i couldn't hear eunice very well. but thursday obviously is the big world war ii parade. they've been trying to stabilize their market as a source of pride for that. then in three weeks there's the big diplomatic visit to the united states. that's going to be very important as well as china makes this messy transition to a more market-based economy and finds itself having into the veen more to try to do that. >> and just getting the data in a reliable way is difficult. there was an interesting note from don cohn after paying a visit there talking about how does even the chinese figure out what their growth is? to that point tonight we will get some of the flash pmi numbers for china.

these have been a big market mover in the past, mike. on some level you don't know if you can take them at face value but i imagine we need to see at least them stopping the decline to be a key piece of that. squlu want to see that almost more for the global market than the shanghai market. the shanghai market's doing its own thing. it's metabolizing this bubble. it's not about the fundamentals. but we want to be reassured of the fundamentals. >> that's a good point. you want to watch u.s. futures the second that one hits. tomorrow we start to get the pmi numbers more generally for everybody. auto sales figures. then we get into the jobs report. sara, which do you think are going to matter more to the stock market? is it going to be the jobs report? >> jobs, yeah. >> or could it be the pmis had? >> the pmis are going to be big but it's always the jobs report and that's always going to matter a lot for the federal reserve. what i want to know is if it's a weak number what does the fed do because the trend has been very solid and continual improvement as the unemployment rate goes down. are we making too much of every single little data point? that's what the fed has been telling us to do in a data-dependent world. zblif to say i'm surprised the extent to which the vice chair

stanley fisher and everybody else has honed their decision on the employment data for this month because we know from their point of view one month doesn't make a trend, mike. i guess what's more important is that one month doesn't break the trend that's been set -- >> that it doesn't break it in a decisive way. you've already heard people say august is a funny number, doesn't always come in along the trend. we have to obviously see the way the markets sort of extrapolate from the number. >> absolutely. and if there is stability in the markets more generally we know that's waived them off in the past. the unemployment rate, by the way. the core inflation rate part of the mandate itself. the unemployment rate being so low i imagine it would take a pretty big jump higher if that were to dissuade them. >> especially because stanley fischer described the jobs improvement in this country to steve liesman last friday was something close to full employment was the exact phrase. what they want to see is inflation creep but he also suggested they can raise rates before that happened. >> unemployment is lower right now than at the start of the last two tightening cycles. with don't need to see anything more from the unemployment rate.

>> mike santoli, sara ooinz. that does it for us on "closing bell." "fast money" begins right noimsa lee, what's on tap? >> horrible month for stocks p not so for best buy. up 14% for august. we've got the analyst who says best buy is giving amazon a run for its money. >> it's a very high-tech sounding show. melissa we'll get straight over to you guys. >> thanks, kelly. live from the nasdaq marketsite overlooking new york city's times square i'm melissa lee. your traders on the decemberric tim seymour, david seaburg, pete najarian and guy adami. tonight on "fast" the p'll rumor mill back in high gear. from the car to price on its tv we are separating fact from fiction on all things apple. plus crude wiping out all of august's steep losses. this as money manager mohamed el ariane calling a perfect stop for oil. oil rallying more than 6% capping a huge three-day gain of 27%. so tonight we ask what suddenly has changed