the worst performer. it is one of those days, the dow down 337. really nothing working for most of the session, as we get another sign that the global slow downcontinues, whether it's china pmi, jarngs cap ex, korea exports and here in the states, our ism, a two-year low as the dollar continues to rise and global demand falls, new orders down. employment down, energy not working. financials not working, some of the volatility may lead some to believe the fed will not move in september. energy falling after yesterday's rally in crude. some of the biggest losers include exxon chevron, ge, jp morgan and microsoft. art cashin joins us. walk me through the volume picture and why it might matter today, if at all? >> the first day of a new month. ordinarily it's prejudice to the upside. new money for the new month coming in. so far, it hasn't had a shot. it will be very important to see

what happens on the close. to see if money starts kicking in. but right now out of concern and sympathy for markets and other countries, as well as crude which was in borderline free fall at this point. they're not just correcting, they're hitting bid after bid, so that's a little bit tough. so far, the volume is not a heck of a lot busier than yesterday in some ways it's a little bit lighter. >> bob pisani this is a point you were making earlier. why does that mat centre. >> i think what goes on overseas is a big issue here. and the big debate that we're getting is can we make an argument that the u.s. should decouple from china? now we're seeing some evidence growth stocks are doing better or not as bad as some value stocks and we've seen the u.s. auto numbers have been very good. i think the front line of the debate is that money is going to

be coming here more than coming to china and we can do it. >>s decoupling argument has not had a particularly great history overall so i'm not sure i'm going to argue it strenuously. i think it's the most important debate we're having today. >> what do you think, how does this way on what fisher may be thinking, having gotten through the weekend with his comments? >> i think he's coming to his common sense. i didn't think they were going to hike and i still don't think they can hike. they've got to look around and say if nothing else, these markets are highly volatile. one just can't tell where the surprises will occur. and -- my argument all along is the risk to the fed with the world bank and the imf and the whole variety of people coming in and telling him no, that if they go ahead and do it, and something goes wrong, they will lose virtually all their

credibility. people will say, wait a minute, you're supposed to be the professionals, mr. fisher, you're supposed to be the key adult in the room. how could you let that happen? that's a tremendous risk. even if they think there's a 90% chance that nothing is going to happen. that's got to intimidate them somewhat. >> you think there's no number that we could see on friday, no nonfarm payroll print that would change that risk? >> if you had a blockbuster number up above 300, you would certainly get the conversation started all over again. i think it was deutsche bank and a couple of others that said seasonality, this particular time of year, that number tends to be a little weaker. so i'm going to be on the far outside looking for a number under 200. so -- we'll see where we come in. >> guys, today i think the most important question we're getting other than the china and u.s. decoupling is how much real selling pressure is there left

in the market? and when we got up this morning. when i got up at 5:30, i looked at the markets down 50 points on the s&p and i thought oh, my heches this isn't going to be like last monday. when we got here and came on the floor just before the open. what was surprising was the volume wasn't anywhere near what it was last monday. in other words, the selling pressure last monday was waves and waves of it. there were stocks delayed for many minutes at the open. that was part of the problem we had, figuring out where the indices were. because the stocks weren't open. we didn't have that problem today. the volume was a little heavier than normal. but it was nothing like last monday. and there was a much more orderly open. we were down essentially we gapped down 2% at the open and essentially that's where we've been all morning. and art, i'm wondering if this is an indication at least that while there's less selling pressure, there's not as much buying interest, that's for sure. but we didn't have nearly the kind of panic that we saw last week. >> but remember last week came on the back, monday, you came in

on the back of very weak days prior to that. so there was a compounding factor. i've been making the point on this program again and again that cash and mutual funds was the lowest percentage it's ever been in history and simon kept asking me, what does that mean and i said if you get a series of down days, prompting a redemption, and when they come in to redeem, they'll have to sell more stock to meet that redemption. i think that's what you saw going on. i think you saw a good chunk of that last monday. what we're having today if we close right here may set up for pressure late tomorrow. >> and now people are starting to get a glimpse as to what august did to some fund managers. einhorn of the "times" today -- >> if redemptions come in they have to start exiting positions or not? zwlt hedge funds to a degree. mainly i was concerned about the mutual funds. i think that that will raise concerns about tomorrow if we close this way.

concerns about tomorrow's close. that was thought to be some of the late selling. i put in for redemption today. probably won't be marked until market on the close that may prompt a lot of people to liq d liquidate on the close. >> some of the drop in the data was emotional, it's said because of what's happened in the stock market. i'm wondering where you think we could see stock market sentiment, some concerns bubble up into data. where should we be looking? >> i think more broadly, the confidence numbers and things like that. i think if this lasts for another week, this kind of volatility lasts for another week, you may begin to see it popping up in things like retail sales and you look to the walmarts and you look to others to see if while they don't give weekly sales numbers, you can get some kind of indication that things are not going well.

people start to hunker down and say i don't know what's going on in the stock market. i keep hearing them say we're down for the year. haven't made any progress here. >> what about, i mean one last point on the u.s. data. we've had good durables, we've had good confidence, ism is lower but expanding. services we hope, large part of the economy, will turn out okay. auto sales good. you throw it all out the window? >> it's not that we're looking like a recession, but we're looking at slower-than-normal growth. we haven't gotten back to the growth pattern we had before the great recession started. and the concern is if everybody else is beginning to really slow down, china and elsewhere, then even this slow growth may turn into stall speed. so you're dead right. we're nowhere looking like we're heading for a recession or anything like that. but the slow growth may be a problem. >> that's the argument of the bulls. on a relative performance basis our numbers are still way above everybody else's. look at the auto numbers today

in growth s&p growth still outperforms. s&p value, even doing that today on a generally down day. i'm not trying to be a ra ra for the u.s. stock market. but on a relative valuation bases, we're the place to be and if you're on a global investment basis, where are you moving money, it seems very clear the u.s. is a better choice, that's what the indications are for the investment so far. >> as my good friend dennis gartman wants to say, unfortunately you can't eat relative performance. it's nice to be ahead of the other guy but if he loft more money than you did and you only lost a little bit, that means less in your pocket when you go to that restaurant. so -- >> art, bob, thanks, guys, talk to you a lot through the course of the yoochblt when we come back, as you can see, plenty of red on the screen. stocks down 336 on the dow, some big losers include dollar tree, freeport mcmoran, netflix down despite an upgrade.

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stocks still struggling this morning on fears out of china right now all major averages deeply into negative territory. every single dow component is in the red right now. you are seeing chevron, exxon,

jp morgan leading the down side in the red right there. nasdaq and the dow opening in correction territory. s&p right now just about 15 points above that. some of the biggest movers are u.s. stocks with major exposure to china. dom chu is back at hq with a closer look. >> the worries over choin are playing a role in the market turmoil. may not be the single biggest thing, but they're a catalyst, two economic indicators getting attention, both the measures of health of manufacturing in china and both showing that conditions are weakening. so this is not the only reason i want to point this out. these traders are looking at some of the companies that could be more exposed to weakness coming out of that particular region. specifically tobias lekvocih, issued a note any he looked at stocks that had china-centric

stocks. technology stocks are a big part of the list, if you look at semiconductor giants like intel. which get around 20% of their total sales from china. another smeemiconductor marvell and even apple. it's not even them, if you look at commodity producers, cliffs natural resources gets about a quarter of its sales from china. mead johnson nutrition, about a third of its sales and even yum brands, guys behind kentucky fried chicken and pizza hut, we know the big exposure there, 52% of their total sales. it's worth pointing out that not all companies break out sales by region or country specifically so many of these are estimates here. he also points out that direct sales exposure may be underrepresenting the total effect on the global economy. that's part of the story.

for more cnbc subscribers to pro can go to the website to see what pros are making of the china developments and how you can actually play it. >> for more on this, let's bring in raol sued, founder of unicorn. >> we're graduating here into this environment where we thought china was going to be a leader in the creation for start-ups and entrepreneurship to a point where we're wondering if their economy is even going to grow this year. how is has your thinking evolved over the last couple of weeks? >> it hasn't changed. look, you know, i was, when i was at ventures, we were running one of the best incubators in the country in china. i saw some unbelievable valuations, some unbelievable start-ups in technology happening in the space. we saw companies getting funded ridiculous amounts of money, at very early stages.

obviously some of that is a little bit of bubble. but you know, the fact is, tech is here to stay. tech is a global phenomenon. these companies are ready to scale. i would worry that china is still one of the top start-up ecosystems in the world. if not going to be number one in the future. >> you stand by those comments you made almost a year ago, that you thought china would be the number one generator, not two or three? >> yeah, i really believe that look, i think that's a lot of red that i see on the board, but you know how this thing happens, it happens every now and then, usually before an election cycle you'll see this happen. stock markets come down and people panic, that sort of thing, i think it's a cycle. i don't think it's a bubble. i'm way too close to tech. i've been in tech for many years, i went through the dot-com bubble. i've been through it all and there's never been a time in our history where technology is so prolific, where every company on earth is basically a software

company. so i'm not worried about this at all. >> combine that phenomenon with the rise of the consumer in china, that's probably a large part of the reason why start-ups in china have been able to succeed. i'm wondering how you characterize the market that we're in over there. because we've heard tim cook of apple say prepare for some near-term speed bumps. i heard you use the term bubble. i'm wondering how we should be thinking about this. >> there's, there's a very large growing middle class in china right now. and there are products that are designed specifically for the china market. that are designed for consumers in china. they'll always be consuming. i think there's a gigantic demand potential for products. i know companies that are still private that are doing massive sales in china. i know a keyboard manufacturer that has 80% market share in china that continues to grow.

not to mention the fact that they're shipping products that are manufactured in china outside the country as well. i don't see it i see a lot of red, i hear people panicking and worrying, but this happens a lot in tech. i go back to if the companies focus on their product and building a really great product and just building a really great and focusing on their customer, you don't worry about what's happening on the street. if you do that, and do that well, over time the street will follow and your stock will follow. i'm not a big believer in these cyclical market events. >> i think you're pointing to what people criticize the valley for, they spend like drunken sailors until it ends and they don't see over the horizon. the point about doing the business well is great. that doesn't keep the funding going when this drys up. >> you're right about that, carl. there's something to be said about these companies that go

out and raise money and just burn a lot of cash and burn through it quickly. but then there are those companies that raise money that build a business that has some massive potential. look at uber for example. uber is a company that everybody uses, and they've got such an awesome business potential, such awesome market growth. yet people talk about how much money they're burning or losing or whatever. you know the fact is their valuation is probably nowhere near where it could be. you know down the road because they do have a ton of potential to grow. they do have a ton of potential to scale and in the valley there's plenty of companies that are, that come up that fail. but there's also some good ones that can turn into something really big. there's a lot of smart money there. they're being a little bit more careful about how they invest so they're investing in founders. there was a time when there was a lot of exuberance and people were dumping money in just about anything. but it's getting harder to find good deals.

when you find them, people put a lot of good money behind them. >> there's venture capitalists who have publicly traded companies that they're liquidating piece by piece and to see nearly all the nasdaq 100 in correction territory, i'm wondering why you don't expect there to be an aversion to risk that permeates the system at this point. >> well, look, part of being an entrepreneur is going after risk and making big bets. you will continue to see people making big bets. there's always a little bit of aversion to high risk. at the end of the day, if you're looking at companies that with really well-rounded teams, they're solving a big problem in a big market space, and it's a new or growing industry, vcs have one job and their job is to go out and invest in deals where they can make a return on it. i can tell you the vcs that early invested in companies like twitter and i'll put facebook aside because they're obviously

an anomaly that's way above their ipo. but if you look at twitter or zynga. the early investors in those companies are laughing, they've done really well. fas i as far as i'm concerned, i'll look at twitter and say twitter has incredible potential. they've got everybody uses it that i know. i know you guys use it as well. i just think it's a matter of finding their footing and something really clear about their model, making it easier for mass consumers to use. i don't see it going anywhere. i look at tesla, same thing. i remember a couple of years ago people were bagging on tesla, when the stock was at $30, it's this or that, now look at it the company is changing energy as we see it, changing the car industry or the home energy industry the new battery they're coming out for the home is mind-blowing. again, you know you have great companies, when you focus on really great product and going

after markets and concentrating on your customer, the stock price won't matter. >> a lot of questions about the two companies you mentioned. we'll save it for another time. i know autograph little bit of news about unicorn today, right? >> we do. indeed. today we announced that we launched a global version of our product. we're now available in north america. unicorn for those that don't know, we're like a theme park for e-sports. and e-sports are professional gaming tournaments and we allow people to bet on you know, video games and watch these video games, and win prizes and that sort of thing and the other thing is that ashton kutcher joined our round so having him on as an investor is exciting we have mark cuban and a number of other great investors as well. so it's a big announcement. we announced we brought on some partners to in our market place that are giving away products from companies like alien wear

and hp. and gunnar optics, this company only started nine months ago, we've raised $10 million and we're cranking, so i'm super excited about where we're at. >> rahul, congratulations, we appreciate the insight on china and tech. talk to you soon. ceo of uni corn and founder of microsoft ventures. stocks selling off. trading off the lows of the session, dow down 289 points, the nasdaq negative for the year. but the next big catalyst for today's session could be the european close. we'll bring it to you live in a few moments when "squawk alley" returns.

a. let's get to simon hobbs, to wrap up europe's trading day, about to end in a sea of red. >> calm of alarming things about what's going on in europe.

one is the headline figures, much heavier losses in europe than here. clearly inspired by china and the way in which china is attempting to deal with the situation. but also pointing perhaps to a broader problem on global growth. as far as the growth in the eurozone is concerned, it's still relatively strong and eurozone employment fell to a 3 1/2-year low, albeit, almost 11%, but the europeans roll with higher levels of unemployment than any given time in the cycle. this is the track since the beginning of august, we're heading down in europe for those lows. the loss today on the session is 2.7%. as a weighted average across the stock 600. meantime the uk came back to trade today and the uk has fallen disproportionately partly because it's playing catch up from yesterday and the big issues moving happen to be quoted in london. that's your global miners which have been smacked. in addition, one of the things you don't want to see, if you're

invested in the stock market is for the fund managers, the asset managers to fall as stocks. this is the second dime that notably we've seen that today. because that's a comment on the profitability of getting people to invest in the stock market longer-term. it's because of the reports, that the lady whose leading man in china is one of these that's been herded off to a suburb in beijing. that's rattled a lot of people. mann for its part is down 7%. a lot of the general china exposed plays are also in negative territory today. remember martin sorel at wpp the advertising agency warn about china. these are big automotive parts makers, standard charter, the bank and burberry. another worrying thing is that the big banks that are generally exposed to global growth have fallen during the session.

not necessarily just asia obviously hsbc is a large asian operation. but these, these kind of bellweathers of the stock market in europe and where we're going more broadly have fallen through the session and that's not necessarily a great sign. back to you. while you've been speaking, toyota has come out with their numbers, phil lebeau has that in denver today. >> toyota reporting better-than-expected numbers for the month of august, the decline of 8.8% might have some saying better than expected? most were expecting sales to drop 12%. the comparison of august this year was with august of last year. and there was labor day involved in august of last year. for some automakers they had huge numbers last year. toyota reporting a decline of 8.8%. better than expected. we should point out jp morgan is out with its estimate for august sales. in terms of an auto sales pace it says itten exams the sales rate to come in at 17.5 million

vehicles. so again, strong sales expected for the month of august. we'll get the official number in a couple of hours, carl, back to you. thanks so much, phil lebeau with auto sales. take a look at u.s. stocks, our selloff is accelerating after paring back losses from earlier. the dow down close to %. nasdaq down 1.5%. it was pointed out that volume is relatively unspectacular, should we make too much of that? >> i can tell you for a fact a good many traders who were not supposed to be in, came in for trading. and smartest money that i've worked with in 30 years, the only orders i had today were buy orders. so it is, it is we're trying to absorb, based on what we've been presented, the facts of the slowdown in china and the data we saw don't justify what's happening here today. there has to be something else

or this is another huge overreaction. we're back to around the levels we were tuesday/wednesday. not unexpected with the volatility. we knew that was going to come with this. for the first day of the month it's a little surprising. >> some people are talking about the volume. it's not as big as it was last week that followed options expiration. is the fact that it's less volume than last week a positive sign? a negative sign in that there's an abscess of buyers? i know that flies in what you've been saying. >> the lower volume for those people who have been looking at it as a technical indicator of a capitulation, it doesn't fit. so the volume is up about 25%, on a three-month running average where we are right now. but not up 60, 70, 100%, more in line with the theory of a capitulation. i think what we're see something a standard volatile movement based on where the vx is and a lack of participation and unknown trying to price in, if this is really what china is

giving us, it doesn't justify where we are right now. >> those who bought the dip said we might have been making too much of china that china didn't have that big of an effect on the u.s. that exports were a relatively small portion of the u.s. economy to china specifically. now we've seen how contagion affects the european market. we've see how hong kong and japan trade when they don't what art cashin is calling the rest tu queue teams in buying. what have we learned? >> i think the united states investors should have learned a lot. if you look at what i found most interesting from a trading perspective is the russell 2000, versus the other major indices of the s&p and the dow jones industrial average. it's performed much better, another indication that the united states economy is doing fine and the ought o'sales we continue to see. all the economic data here is saying we're doing just fine, thank you and the fed can justify what it's doing. but going way back to the idea that the oil adding stimulus, i

believe it's a direct impact on auto sales and the a direct impact on the increase and cost of health insurance which is why the health care providers are some of your better performers. >> jeff curry of goldman sachs says it's a month or so until we see the benefit hit the consumers' wallets. ben willis, we appreciate your time. when we come back we're at across the board, all major averages down close to 2%. energy the worst-performing sector, oil is down $3.50. we'll try to find a bright spot in a minute. opinions. there's no shortage in this world. who do you trust? whose analysis is accurate? how do you make sense of it all? a simple, unbiased stock score consolidated from the opinions of independent analysts... is that too much to ask? nope. equity summary score, powered by starmine, will help you execute your ideas with speed and conviction.

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i'm sharon eperson with your cnbc news update. authorities in thailand have arrested a man they believe is the main suspect in the deadly bombing at a bangkok shrine two weeks ago. is a foreigner and was arrested in eastern thailand. north korea state television broadcasting footage of kim jong-un watching a missile launch and inspecting military drills. the footage was shot in june and appears to show june watching test firing and smiling and applauding as monitors show they hit their target. fiat chrysler is recalling more than 200,000, 2014 jeep cherokees sold in the u.s. and canada and mexico.

it sass the windshield wipers can suddenly stop working. yahoo's ceo marissa may certificate pregnant with twins. she said she and her husband are expecting twin girls in dms, mayer said she will take limited time away from work as she did with her son's pregnancy three years ago. now back to "squawk alley." >> our congratulations to marissa mayer. stocks, meanwhile continuing to selloff. all major averages down. the nasdaq is faring the best. it is still turning negative for the year. bertha coombs is live at nasdaq with a look at some of the biggest movers. bertha? >> the nasdaq composite back in correction territory. down 10% from the july all-time high. large caps have been the worst

performers overall. no mystery why. apple barely positive for the year this morning looks like it will be fractionally higher. but august marked its fourth consecutive monthly loss. the worst streak for apple since october 2012 through february 2013 period. a handful of stocks inching into positive territory. biogen and alexian a strong buy at raymond james and in a down market you look for what is less bad. on that basis, altera and nvidia are down less than 10% from recent highs. most impressive given that the chip sector is in bear market territory. taking a look at some recent ipo, blue buffalo which went public in july hitting a new low, only down about 14% from

its high. nantkwested a etsy are in bear market territory. let's stick with the markets, here to give us a sense of where the turbulence is being felt in silicon valley, kate mitchell is the founding partner at scale ventures and a board member at the national venture capital association. kate, good to have you this morning. >> they're based on real earnings and we know what those earnings are, what aftershocks do you see in the private sector. >> it's interesting, the public markets are the hare, we're the to tore toys, our reactions take longer. in the last couple of years there's almost been no impact. our markets have continued to power through and get higher capital and a higher prices. some of us in the market are

hoping that if it doesn't pop a bubble, it prick it is and begins to take the heat out of the private markets. it's been pricey over here so we're hoping our tore toys may catch up a little with the hare. >> an interesting analogy. venture capitalists are managers. if you look at it and decide that your allocation needs to be different. what's the response? >> it's interesting. as an investor, we're early to mid-stage investors, so companies with nascent revenue, we're not concerned about our portfolio companies, i'm going to keep more in reserves. why, because i think people will be conservative in the future. a lot of people who joined the market may leave. which frankly provide me great earnings opportunities, i'll be able to buy my assets and investments at better prices. i think this could be a better time to buy than it would have been six months ago per se, as

often investors think. what we found in our market that a lot of the investors that have been playing in the public markets have moved over to the private markets to get growth. those tourists are going to get home. had could become a better time to invest if all goes well. >> kate over the last couple of years, we've talked about business models or spaces where vcs see the most opportunity. whether that's green energy or health care. are there models now where no one wants to touch it with a 10-foot pole? >> i think it's less models that are an issue. i think anything that doesn't have a sustainable advantage, anything that's me, too, that can be copied easily worldwide that can be copied by the next competitor, i think is a concern. give us an example -- >> if i start a site on jewelry, the next site can. a good example was in the shoe

space. we had fab, we had a whole series of companies that were trying to sell shoes online. that, zappos was the first there, amazon acquired them, game over. when you're trying to do a me tube. i think there will be less interesting ideas, the markets can sustain a winner in most large markets, but not multiple winners, that's what you start to see in a market contraction like this. >> how much of an effect will chine be to us in the u.s. markets and to the venture capital community at large? >> well it's interesting, what happens, china is a psychological impact for most of us, the chinese venture capital market is growing. more of it is focused on the middle market than pure innovation. that in and of itself i think is not an issue because it's not large. i think it will hurt companies like the alibabas of the world, that will find some interesting balance. it's not a big end market for our companies, partly because of the ip issues.

i think it gets back to the issue of psychology. a lot of the excess capital and high pricing in venture capital markets was because we had a lot of crossover investors deciding that venture capital was an interesting place to play. again, think those folks will go home, that will reduce that frenzy i think we're finding particularly in those pre-ipo rounds with, the pricing has become pretty unreasonable. you look at companies like zynga and groupon. they never recovered from the late-stage prices and early public prices. that as memories are coming back. i think those people are going to recede from the business venture and tend to their wounds. think it will bring better balance to where we are. >> you have a very candid, and a very frank take on all of this. we certainly appreciate that. on a day when the markets are not giving us much to work with. kate mitchell. >> thanks, kayla. when we come back this morning we'll keep an eye on the markets, the dow down 321, not

far from session lows, oil not helping. down 350. rick santelli, what part of the action are you watching? >> i'm watching all of the action. we're going to talk about what's going on in canada, our neighbor to the north. new information there. everybody gets a bit of market amnesia. do we all remember how we climbed the mountain to get to the top? as we start to slip down. the same dynamics are coming into play. what are they? we talk about it after the break. it took serena williams years to master the two handed backhand. but only one shot to master the chase mobile app. technology designed for you. so you can easily master the way you bank.

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coming up, one cio is coming home, putting big money back to work in the u.s., despite the sell-off today, why is he so bullish? plus our expert stephanie link says there are high-quality names on sale right now. she'll give you her shopping list. and citigroup says forget the rally in crude. just trade the facts, what are the facts telling them? a controversial call on energy that we will debate. carl, see you at the top of the hour. meantime, let's get to rick santelli in chicago and get the santelli exchange. hey, rick. >> i talked to about canada during the tease, canada officially in recession. if you still believe the old axioms two negative quarters is a recession, four is a depression, imt not sure about the latter any more. i think we revise these things as we go along. but definitely down a half of 1% from the april through june

annualized and they revised their january through march, down .5 or .6 to down .8. you're saying of course, they're part of the whole energy rout. absolutely correct. except for so is texas. what's going on with texas? see, the many of these commodity economies definitely were part of the global growth story and that's really what this entire segment is about. is that we are all arm in arm on global growth. don't we remember how we climbed these big peaks after the credit crisis? the energy market was one and everybody jumped on. commodity goose in the market with regard to commodities. but listen, don't forget the middle east as well. and i always joke about a cartel. you're never going to get a bargain when a group is called a cartel. so the cartels take on the patriotic free marketers that came up with all the yankee inengine out on creating things

like fracking and how to horizontal drill wells and like the article in the "wall street journal" pointed out, a lot of the numbers and scary aspects of the energy reversal here, didn't affect many that it was supposed to affect. and those that it was supposed to affect the least like saudi arabia, well, they're going through burn factor. because we've repriced. we've recalibrated. we're recalibrating energy, we're recalibrating trade. we're recalibrating economies. not only canada, but remember how we had interest rates move so far down in the united states? i remember when the topic was, arm in arm with the european rates. wow, bund yields got down into the single digits, a lot of the first part of the bund curve they were in negative territory and still are. what's going on with bund yields? they climbed up over 80 basis points today. they had the highest yield close they've had since mid july. where was our 10-year at mid july? 2.35. the distance between the two is

narrowing, narrowing because rates are going up. it widened when rates were going down. these are simple things. listen we all know how we got up the mountain. now everybody is saying we're all going to delink and the united states is going to be great on its own that wasn't the story on the way up. and it won't be the story on the way down. back to you at post 9. >> all right. thanks so much, rick santelli in chicago. up next we have one eye on these markets, the dow now down 313 points, but all major averages are resisting a 2% drop. we'll have more on the markets in just a moment. plus apple looking ripe for content. why the company could be eyeing taking on netflix.

my name is mark amann. i'm a gas service rep for pg&e in san jose. as a gas service rep we are basically the ambassador of the company. we make the most contact with the customers on a daily basis. i work hand-in-hand with crews to make sure our gas pipes are safe. my wife and i are both from san jose. my kids and their friends live in this community. every time i go to a customer's house,

their children could be friends with my children so it's important to me. one of the most rewarding parts of this job is after you help a customer, seeing a smile on their face. together, we're building a better california. what a ride for crude oil. the last three days were the best three-day rally in 25 years. splash aid cross of "u.s.a. today," that's the main story. a turn-around, we're down 8%, back to 4549. take a look at apple, slipping to the down side as a report from variety says the company could have big plans for original content. we're joined to talk more about abay lam. >> we wondered for years when they would take the plunge. variety characterizes it as having low-level discussions with hollywood executives. what do you think is going on?

>> there is a possibility they do something like that. keep in mind, apple has a very large base and they're trying to figure out where to monetize that. they have music streaming services and having their own content can help and they've got $200 billion in cash on their balance sheet. to invest. they could be looking at a bunch of different opportunities to and this could be one of them. we still don't know all the details. we would like to see all the details to get a better understanding of what they're trying to do. among the ways that they've tried to monetize this base. we've seen them build out music, build out payments. i think maybe they're spled spred too thin. i've think they've got a lot of resources at this point. i think it's a matter of things kind of sticking. at this point it's essentially an iphone company.

currently iphone drive as majority of their revenues and profits and a lot of these initiatives are probably going to some of them are going to work, some are not going to work, they're going to try most of them and they've got the resources to try as many targets as they want. >> we've been watching the stock. it's having a dramatic last couple of weeks. some on the sell side have argued once it got to 110, 100, you might sense the buy-back kicking into action. is that what you think has saved it going beneath that, flash crash aside? >> you know essentially there is significant demand for the stock as well as it approaches around 100, valuationwise the stock slooking attractive and buy-back starts kicking in. at the same time this is a stock which over the next couple of quarters is going to run into significant headwinds as iphone

shipments are going to come under pressure. >> you think we go negative in december? december quarter negative on phones or not? >> i think there's a real possibility. they have a tough compare of 74 million units, it's a very distinct possibility that the december quarter could be the first time that iphone shipments have negative growth year over year and that could make it hard for the stock to work. >> before we get to the holidays we got to get through september 9th. do you expect any surprises on tap? >> we're expecting the iphone 6 s details about that. and maybe a little more details about apple tv and we don't think there will be much surprise if they went a lot of the things that are very marginal in nature. we're not expecting anything

revolutionary to come out on september 9th. >> we'll be there anyway. >> we'll keep our eye on the markets as well. dow steady in the range, down about 300, between 300, 350. session lows 400-plus, we talk more about what the afternoon may bring when "squawk alley" continues in a moment. 73% of americans try... ...to cook healthy meals. yet up to 90% fall short in getting key nutrients from food alone. let's do more... ...add one a day men's 50+. complete with key nutrients we may need. plus it helps support healthy blood pressure with vitamin d and magnesium.

getting word from google that they have a new logo. the company saying in the intro of its youtube video quote google has changed a lot over the past 17 years from the range of our products to the evolution of our look and feel. the company writes in the intro of the video announcing news and today we're changing things up once again. going to a different font. >> unleash the font geeks. >> some say it's not a new logo, just a new font. but i think it's a new logo. i keep thinking back to the goldman upgrade last week when they put it on their focus list. target 800. we talk about to heather bellini about the changes that alphabet is going to bring. this is one of them. >> speaking of goldman, goldman is responsible for the most losses on the dow right now. it's taking about 30 points off of the dow. so maybe yesterday's dow to buy

on a pullback was premature. >> if you believe stan fisher that the fed is not going to move if 24i7ks things are super volatile that would prevent the fed from elevating the curve. we'll see what the afternoon brings. >> cashin says a 300-plus print on friday could make things very complicated. >> let's get to sara eisen and the half. in today for scott wopner, let's meet today's starting lineup. joe terranova, stephanie link, josh brown and pete najarian. and our game plan looks like this. technically speaking, as the market moves gives investors whiplash, we're pointing out the levels of support and resistance that you should be tradingnd watching. you go have questions, pete's got answere'