for my children and for yours. thank you very much. [ applause ] >> that is the president in front of the u.n. with a full-throated defense of not just democracy as an institution but also diplomacy over force, multilateralism. eventually a bit of scolding of russia on ukraine, russia on syria. called for what he called managed transition in syria. saying that a return to assad is not a reasonable outcome after all the bloodshed there. our michelle cuse sa cabrera. not a lot of applause until the very end. >> no, i would highlight the point you bring up about the managed transition, post-assad. i mean, that was definitely a foreshadowing of what he's going to talk to vladimir putin about this afternoon when they have that bilateral meeting. at the same time, wanting that transition. that's not going to go over well

with putin. he's long been a supporter of assad for the simple reason the russian position, to oversimplify it, has been better the devil you know versus the devil you don't know. what comes post-assad, we don't know. he got very little applause. the biggest applause line he got, carl, was when he called for the end of the u.s. embargo against cuba. that got a strong round of applause. a full-throated defense of democracy and diplomacy. the most elegant line, the strong men of today are the spark of revolution tomorrow. back to you. >> michelle cusic cabrera, we'll keep our eye on putin as he speaks later on this morning. michelle mentioned the bilateral between putin and obama today. a little past 8:00 a.m. at apple headquarters in california. 11:00 a.m. on wall street. "squawk alley" is live.

good morning. welcome to "squawk alley." for this monday. good morn, john. with us as always, kale la toushy and john ford. a new study from scientists at the georgia institute of technology providing the strongest evidence yet there is water on mars. the study suggests there's actually flowing liquid water on the planet surface when temperatures are warm enough. earlier tests had found frozen water. this is the first time liquid water has been detected. this comes from data collected by nasa's mars reconnaissance orbiter.

this could be a topic of discussion for later in the day. in the meantime, as that happens, donald trump expected to host a news conference in new york city today. outlying his tax plan which cuts the corporate rate from 35% to 15%. with the top rate 25%. as we get details on that, we'll bring that to you live. let's move to apple. announcing it sold more than 13 million iphone s-6 phones over the weekend. shares apple falling. as part of the broader sell-off. the dow is down 156. in terms of expectations, john, on the money? >> on the money. maybe a little bit better than some expected. it's not apps to apples comparing to previous years. number one, china was part of this launch. of course that's apple's big growth area. number two, is there were two weeks of preorders.

this time in the past, there's been just about one week. so you had some build-up of demand over that period of time. but even given all that, for it to be up 30% year over year is significant when analysts had been afraid that the december quarter could go negative for apple. >> some interesting numbers that came out. piper actually did a survey. 82% of people that had the larger 6-plus kept with the larger size in the "s" if they upgrade and 56% of people who had a regular-sized iphone 6 upgraded to the larger size as well. good for apple. the larger screen size has higher margins and goes to show people love giant phones. >> now we'll try to parse what this means for apple's quarterly numbers. the company says sales up until saturday, september 26, will be counting towards this current quarter. is that meaningful? is that apples to apples from last year? >> before you answer that, let me take you to donald trump's news conference which is beginning now in midtown,

manhattan. >> -- it's a tax reform that i think will make america strong and great again. americans are working. too many jobs are being shipped overseas. and too many middle-income families cannot make ends meet. this plan directly meets these challenges. and the challenges also of business. it will provide major tax relief for middle-income and for most other americans. there will be a major tax reduction. it will simplify the tax code. it will grow the american economy. at a level that it hasn't seen for decades. and all of this does not add our

deficit. i will be discussing some of that at the end. we have to make much better deals. we have to negotiate much stronger. changes for individuals will be at levels that you haven't seen in a long time. we're going to cut the individual rates from seven brackets to four. simplification. 25%, 20%, 10%, 0%. if you're single and earn less than $25,000, per year, or married and jointly, and jointly, earn $50,000. so, very important. if you're single and earn less than $25,000 or married and jointly earn less than $50,000, you'll not pay any income tax.

nothing. this eliminates very strongly and quickly the marriage penalty. very unfair penalty. it eliminates the amt. which is the alternative minimum tax. it ends the death tax. it's a double taxation. a lot of families go through hell over the death tax. it reduces or eliminates most of the deductions and loopholes available to special interests and to the very rich. in other words, it's going to north dakon [ inaudible ] which is actually true. of carried interest, those are the hedge fund folks i've been talking about for quite a while.

they make a lot of money. carried interest. so it ends the current tax treatment of carried interests or speculative partnerships that do not grow businesses or create jobs and are not risking their own capital. changes for business. now, so important. because it's all about business. it's all about jobs. we have 93 million people in this country that are in serious trouble that want to work. they can't work. so, for business, no business of any size from a fortune 500 company to a mom and pop shop to a freelancer living from gig to gig will pay more than 15% of their business income in taxes. big reduction. a one-time deemed repatriation

of corporate cash held overseas at significantly discount coming back at significant discount. so it comes back discounted at a 10% tax rate and ends the deferral of taxes on corporate income earned abroad. now, it's called corporate inversion. it's a huge subject. i've been watching politicians now for years all talk, no action politicians. i've been watching them for years talking about bringing this money back. the number is probably $2.5 trillion. everybody agrees it should come back. republicans, democrats, everybody. they can't make a deal. they don't know how to go about making a deal. the reason companies aren't bringing it back is the tax is onerous. it doesn't make sense. in fact, many companies are leaving the united states. they're leaving our shores.

to go and collect their money. they're going -- actually moving out of the united states for two reasons. the taxes are too high. and because they have tremendous wealth they can't bring back into this country when everybody wants them to bring it back in. it's called leadership. we will have that money brought back in. as an example, i have millions of dollars overseas. i can't bring it back in. we file papers. we've been doing this for a year and a half. you can't get it back in. so the money stays in other countries. and that's what happens. not good for us. the level of leadership that we need to get things like this done is so important. but this is something, and i've been watching it for a long time, everybody agrees to. we also reduce or eliminate some business loopholes. many of them actually. and deductions made unnecessary

or redundant by the new lower tax rate on business income. the tax rate now is so low th that -- which are complicate and don't make sense, which are unfair, are gone. we phased in a reasonable cap on the deductibility of the business interest expense. so we are going to give you -- we have papers that actually, if you know business, is not so complex. and we're going to hand them out right now to the press. and i think you'll see. we have amazing code. it will be simple. it will be easy. it will be fair. it's graduated. as you get up in income. you pay. some of the very unfair deductions that certain people have been given who make a lot of money will not be available any longer. but i actually believe they'll

do better. because i think the economy will grow rapidly. and we'll have something very special. now, with all of that being said. and before we take some questions. we have to cut the costs of what's going on in this country. if you look at what we're doing and the money we're spending, i read where a washer, you know what a wash is er is, nut, bolt. to send from one state to another, it was a 19 cent washer and it cost 900 some odd thousand dollars. and there are many examples. hammers that cost $800. that you can buy in a store for a tiny amount of money. we will run this country properly. there is so much money to be saved. we're reducing taxes, but at the same time, if i win, if i become president, we will be able to

cut so much money. we won't be losing anything other than we'll be balancing budgets and getting them where they should be. so this is a plan that's simple. that's a major reduction. i think people are going to be very happy. we've already had some very good reviews. i did the plan with some of the leading scholars and economists and tax experts that there are in this country. they love it. they say, why hasn't this been done before. and this is my wheelhouse. that's what i do well. the economy is what i do well. whenever they do polls, i always come out way ahead of anybody else on the economy. and on leadership by the way, but i won't say that. so, if anybody has -- [ applause ]

thank you. that's amazing. some of the press was actually clapping. i don't think i've ever seen that before. all right. why doont don't we take some questions from the press. go ahead. [ inaudible ] no, i'm not going to do that. we have some of the top people in the country worked on this. we're looking at 3%. we thing 5%, it could even be 6%. it will be tremendous. and by the way, if we have more than 3%, these numbers are really spectacular. and one of the things that they don't take into account in any big-league fashion is the cutting. there is so much waste in government that i believe when i get in there, i'll be able to cut without losing anything, to cut tremendous amounts off of -- and we're not even showing anything for that. so they're very conservative numbers. yes, sara. [ inaudible ]

my taxes will -- first of all, i'll have a much simpler tax statement. it will be much simpler. when i do my return, it will be much -- my returns go up to the ceiling and beyond. which is ridiculous. and you spend millions of dollars at a high level on lawyers, accountants and everything else. we want to simplify them to a tremendous level. the bracket of 25, the big difference is, many of the loopholes and many of the deductions, which are old, have been there for years, are antiquated. put there because a lot of the people that get these deductions are contributing to hillary, they're contributing to bush, they're contributing to every candidate but trump. because i'm not taking any money. i'm self-funding. and these people want these deductions. there will be people -- we're reducing taxes. but believe me, there will be people in the very upper

echelons that won't be thrilled with this. we're taking away deductions and that's one of the reasons we're able to lower it. this is actually a tax reduction. i actually -- a big tax reduction. including for the upper income. i believe that the economy will do so well that even though they won't be getting certain deductions, which aren't fair for them to be getting, that they'll end up doing better. okay. yes, go ahead. [ inaudible ] i just think this is a common sense approach. we could say supply side. there's 15 different names given out. i don't think it's supply side or anything else. i think this is a commonsense, well thought out tax proposal that's going to trigger the

economy, going to make everybody go back and really want to work. it's going to create tremendous numbers of jobs. one of the other things that i'm coupling this with is if i become president, i'm going to renegotiate our trade deals. our trade deals are not sustainable by this country. not sustainable. we cannot continue to let our jobs go to all the different countries. there's not a country that we negotiate with that doesn't make a better deal. everybody. we lose money with everything. i'm also going to renegotiate some of our military costs. because we protect south korea. we protect germany. we protect some of the wealthiest countries in the world. saudi arabia. we protect everybody. we protect everybody. we don't get reimbursement. we lose on everything. we lose on everything. so we're going to negotiate and renegotiate trade deals, military deals, many other deals, that's going to get the costs down for running our country very significantly. i'm not showing a big number in

that. but i believe that if i become president, those numbers are going to be massive. as an example, saudi arabia, they make $1 billion a day. we protect them. so we need help. we're losing a tremendous amount of money on a yearly basis. and we owe $19 trillion. i used to say 18. for the last six, seven months. now it's 19. it's only going up. yes, tom? >> that is donald trump unveiling his tax plan. straight out of the supply side school of economics. simplifying the code. down to four rates. ending carried interest. cutting the corporate tax rate. apparently, john harwood, who is going to talk to trump tomorrow, his campaign materials say, if you pay no taxes under this plan, you get to send a one-page form to the irs that says, quote, i win. >> uh-huh, yeah. well, that's the nature of this campaign. he has proposed a 25% top tax

rate. as i understood him, a 15% business tax rate. he said he would eliminate deductions. but there aren't enough deductions around to reduce the rates that low without making a huge increase in the deficit. marco rubio has lowered the top rate to 35% in his plan. it increases the deficit. he acknowledges. jeb bush cut it in his proposal down to 28%. and the estimates are that it would be from 1 to $3.5 trillion added to the deficit. so donald trump said on "60 minutes" last night this would raise as much or more revenue. that is going to be very difficult to square with reality. therefore, it's going to be a very difficult plan to pass, should he get the opportunity to try, by being elected president. >> although, john, he be is talking about it a little bit

differently than he did in that interview last night on "60 minutes." talking about broad-based major reductions. talking about the revenue-neutral nature of this plan, at least in the first two years. how important is that rhetoric for the republican party? >> well, no one can look at this tax plan and believe that it would be revenue neutral. unless we get some details that we can't imagine right now. there simply aren't enough deductions to get the rate down to 25 and get the corporate rate down to 15%. it's extremely unrealistic. so i think that people will treat this as -- kind of like that form that carl was just describing, the form that says "i win." as an entertaining piece of argument, but not one that is -- appears to be grounded in reality. >> i saw grover norquist on some of the morning shows today, john, essentially applauding the basics of the plan. trump didn't specify who worked on this part of his platform. do you have any idea? >> no.

he wouldn't say. i believe that was the first question he got. he said, i'm not going to tell you. we'll see. something i'll discuss with him tomorrow as well. when he was asked not long ago about his foreign policy adviser, he said, i watch the shows. is it the same for his economic plan? we will see. >> john harwood in washington, john, we look forward to your conversation with him tomorrow. and of course you can hear much more from trump and the republican hopefuls at our cnbc republican presidential debate which is quickly coming on october 28. when we come back, don't go anywhere, later on this hour, president bill clinton will sit down for a live interview. a fantastic piece you do not want to miss. eligible for medicare?r ] that's a good thing, but it doesn't cover everything. only about 80% of your part b medical expenses. the rest is up to you. so consider an aarp medicare supplement insurance plan,

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welcome back. let's talk apple again. we were discussing the ramifications for that. you still have confidence in the december quarter. the upgrade cycle in your view looks strong. >> the december quarter, we talked about this before. some people saying, hey it could go negative. i don't see any reason based on the trends of a couple weeks and month ago. certainly these numbers, why that should happen. another reason is only two days of these weekend sales, friday and saturday, fall in the september quarter. the rest, sunday and the rest of the launch week are going to fall into the december quarter.

that is different from what has happened in past years. you've had a weak or maybe a little bit more falling into the december quarter and then the rest is the december quarter. you're going to get the big launch as well as the entire holiday season in that december quarter. >> and then to kale la's question before trump came on, the note out basically saying in the past few years it's been 26% of the phones for the sent quarter are sold in that opening weekend. it's a huge portion of that quarter as well. >> is it too early to say whether the 13 million new iphones that were sold will do anything to get more people on to the app ecosystem, more people looking at that apple watch app that lives on a home screen and buying an apple watch is this. >> because of the iphone upgrade plan, people are more likely to go into the store, potentially buy the phone. when they're in the store, they'll see the watches, the new

bands. fixes some of the glitches with the watch. this is good for the watch. >> the thing you've seen is the software really is coming more to the forefront and they are making some strides in i-cloud. you can add i-cloud as an application. casey newton at the verge has an article talking about drop box being probably the first $10 billion company that really missed its way and maybe what steve jobs just said, it's not a future company who's coming to be true. you are seeing cloud services that would be hard to move off of. i think it's more game changing than i thought it would be. >> that's interesting, box is down about 3%. close to post-ipo lows today. we've talked about some of the challenges of being commoditized or at least run over by extremely large competitors. >> i mean, even look at live photos. it's their own kind of social toy as well. >> enterprise will be further along in that arena. thank you for joining us today. >> coming up, an interview you

can't miss. president bill clinton sitting down for a live interview with our own becky quick. that's come up a limb bit later on this hour. plus, still watching these markets. another triple digit move for the dow. currently down 1.25%. more "squawk alley" when we return. here at the td ameritrade trader group, they work all the time. sup jj? working hard? working 24/7 on mobile trader, rated #1 trading app in the app store. it lets you trade stocks, options, futures... even advanced orders. and it offers more charts than a lot of the other competitors do in desktop. you work so late. i guess you don't see your family very much? i see them all the time. did you finish your derivative pricing model, honey? for all the confidence you need. td ameritrade. you got this.

markets near session lows here in the states. taking something of a cue from europe. simon hobbs is here. >> this is a rough session. look at the figures on the screen there. it's hard to imagine the ecb is engaged still in massive qe. it's not doing anything for the equity market. the same thing we had at the end of last week that are front and center again. notably, glen core, at the heart of this sell-off. remember, it's down about $50 billion from where we were just at the beginning of the year. the latest problem we have for

this trading metals stock, suggesting that the equity could virtually disappear. that's not in the main scenario. they believe commodity prices will pull higher. there is value. and then you have the dividend policy of the sort of black holes that would show up if they maintained their dividend moving forward. vw has fallen again today. the technicians, according to reports, were warning the illegality of the targets. now under investigation for possible fraud. at the same time, the european central bank has had to reassure people they can still use vw abs, asset backed securities. they said they would no longer

be buying vw's abs as part of the qe policy. the automatives have continued to fall around europe. you get this contagion moving through. a lot of the banks are lower as well. which is quite interesting. i mean, it's a broad base sell-off you're witnessing. these are some of the highlights. voda phone is also down on talks of possible sales to liberty global. the pro-independent parties were returned. there's a feeling guys, just to cut through the analysis that ultimately madrid will do a deal with then, perhaps on taxation, further down the line. this is not a precursor, probably, to independence. back ton you. >> when we come back, as kale la said, keeping an eye on the sell-off here. s&p, 1,899. all the major averages down over 1%. the nasdaq, the worst of the bunch. and then of course president

bill clinton sitting down with our own becky quick. that's a live. we're coming back in just a minute. it really opens the passages. waiter. water. so why would you invest without checking brokercheck? check your broker with brokercheck.

i'm sue herrera. here's your update at this hour. pope francis back home after his week long trip to cuba and the united states. he paid a private visit to basilica this morning to give thanks for his trip. he laid flowers at the altar and

spent a few moments in private prayer. israeli riot police clashing with protesters. the protesters barricaded themselves inside the al aska mosque and threw firebombs at police. a scary moment for gop presidential hopeful carly fiorina. she was speaking as you can see there at the national women's business conference yesterday. a backdrop collapsed. luckily, no one was hurt. and miss fiorina made light of the situation, saying she is plenty tough to be commander in chief. star gazers around the world were treated to a rare astro nomical phenomenal. making its closest approach to the earth. that's the first time it's happened since 1982. it won't happen again until 2033. it was a beautiful sight if i do say so myself. i saw it last night. it could be seen across many don't nens. that's your cnbc news update. let's get back down to the nyse.

>> the clouds thwarted my viewing of that but i'm glad you got to check it out. moving on. apple's iphone success launched on friday. after the weekend sales, the numbers are in. 13 million of those new phones have been sold in the past three days. can we expect that mo mementum continue going forward? chris sullivan is the ceo of gazelle. gazelle specializes in trade-ins and used phones. it's hard to compare apples to apples on these iphone numbers. it's interesting, if you see more people trading in iphone 6s than the trend would have been comparably last year. because that gives a sense of people trading those in, they're probably upgrading. what are you seeing over the past few days? >> we are seeing the same thing. we're seeing that trend. for the last few days, actually for most of this month, the iphone 6s have been over 40% of our total trade-in.

in prior years, one generation old phones, are between 30% and 35%. we are seeing a noticeable uptick in the percentage of one generation's old phones being traded in. >> do you have any sense of whether that's because people are eager to get on these new annual upgrade plans apple is offering? while the major carriers are offering some version of upgrade your phone every year? if you already had a contract and it wasn't up yet, maybe you want to sell that existing phone in order to get on those plans, do you have a sense of what's causing people to upgrade? >> i do think that's probably a factor in nthat. the carriers and the oems are offering similar programs. one thing that consumers should be aware of is for instance in the apple upgrade program, we're seeing varying reports on the complexity and the consistency as how it's being applied. one issue is if you don't have pristine credit, it can be a

little bit troublesome for people who are going in to upgrade their phone. i have no doubt it's having some positive impact on the overall tendency to upgrade. >> i actually did that upgrade program to test it out. i had no problems though. they weren't giving me the value for my 5 ss i wanted. so i shipped them elsewhere. i'm also wondering about demands for used phones. this is an area you're pushing now before more than ever before. what are people buying from your certified used, a term we're used to hearing in cars, lineup? >> our market data told us people were going to be increasingly more interested in used phones. our actual data is barring that out. over the past few days and over the past few weeks, we've seen a significant increase. up about 113% week over week for iphones. so we're seeing a strong count. we're up this week over prior

weeks. interestingly enough, we're also seeing an uptick in i-pads. with the announcement of the new ipad, it was tended to be more professionally focused, as opposed to the average household consumer. so we're actually seeing an uptick now in the demand for ipads. >> all right. well, thank you to you, chris, over at gazelle. perhaps people looking to upgrade to that mini-4. coming up, president bill clinton sitting down for an interview with our own becky quick.

as stocks sell off, billionaire activist carl icahn has a new warning for investors. plus, one of the biggest bulls on the street says this market still has a lot of room to run. he makes his case with us. and searching for good long time buys that are cheap. hopefully not getting cheaper, i guess. >> meantime, check out the dow. as we said earlier, s&p with an 18 handle for the first time since late august. let's get to rick santelli and the santelli exchange, rick. >> thanks, carl. i always say when markets are proactive, they're guns hot. there's little doubt the equity market's to the down side of it the bearish trade of late, equities, are running gun hot

now. when guns are hot, what happens? it gets a whole lot more attention from other markets. but specifically today what i wanted to point to is the linkage between equities falling and what's going on in high yield and how that spills over into corporate sectors in general. we've talked today about the barclays widening. whether it's investment grade or high yield. let's look at the etf. clearly show the markets moving down. i can't run more than two intradays in a row. this is the seventh session in a row where the hygs moving lower. opening it up to august, you can see that dynamic. if you open it up the last time we're at these levels was around thanksgiving of 2011. it's a bigger story than that. it's about the debt legacy. today, the president at the, you know. we covered it here at cnbc. is talking about climate change and the legacy those of the current planet are leaving to future generations.

now, wie can debate the human factor and how much actual accomplishments we're going to get and quantify it against the dollars being spent. we all agree, take care of the planet. what i don't understand is, with the tenuous issues of government overlooking things like natural gas with the energy grid talking about how a tesla car is good when it's most likely fired up through these grids, but when you talk about debt, nobody really talks about the legacy we're leaving with regard to debt on future generations. much more tangible. much easier to quantify. just look at omb or congressional budget office. look at what they're telling us we're going to be facing. a mountain of debt starting around 2026. moving to 2035. where the numbers and the demographics and entitlements get downride scary. back to the equity relationship with debt. we know that since the credit crisis, there's about 56 trillion more global debt.

i think that somebody should go to the u.n. and talk about these issues. they are a concrete, no argument, no debate, there's no science to be settled here. how do we know it's true? because, if you look at some of the issues being talked about, if you're holding any of these less than perfect credits of sovereigns, and this market continues, what we're going to see is a lot more selling and futures to hedge high yields and corporates. is the market deep enough? i'm not sure that it is. carl, back to you. >> i'll take it from there, rick. it's a real fear and a good reminder. we appreciate it. up next, still keeping an eye on these markets. s&p 500, nasdaq, down for five days straight. down has been down four of the last five sessions. we will tell you what you need to know about the markets as major averages continue selling off. plus, the interview you do not want to miss. president bill clinton speaking live to our own becky quick. that's coming up next on "squawk alley."

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i've been with pg&e nine years. as an employee of pg&e you always put your best foot forward to provide reliable and safe service and be able to help the community. we always have the safety of our customers and the community in mind. my family is in oakland, my wife's family is in oakland so this is home to us. being able to work in the community that i grew up in, customers feel like friends, neighbors and it makes it a little bit more special. together, we're building a better california. chinese president xi something ping with remarking at the u.n. >> king abdullah of jordan is addressing the assembly. xi just finishing up.

we had heard from him already, with the policy speech last week in seattle and his appearance at the white house. next up will be vladimir putin. he's arrived. he's in the building. he's likely going to be a counterpoint from what we heard from president obama earlier. the two are meeting in a bilateral late this afternoon. president obama gave us a hint of what he's going to say to vladimir putin in his speech earlier. >> yes, realism dictates that compromise will be required to end the fighting and ultimately stamp out isil. but realism also requires a managed transition. away from assad and to a new leader. and an inclusive government that recognizes there must be an end to this chaos so the syrian people can begin to rebuild. >> so that wasn't an outright call for regime change in syria, but a managed transition post assad. certainly is something that he's going to bring up with putin. he's made that clear. putin is unlikely to be receptive to that.

he's long been a supporter of assad in syria. russia has said we'd rather stick with the leader who's in power there. we don't know what comes after assad. >> going to be be a busy afternoon as well for you at the, you knothe u.n. and then president clinton in an interview with beck question quick. don't go away. i'm only in my 60's. i've got a nice long life ahead. big plans. so when i found out medicare doesn't pay all my medical expenses, i looked at my options.

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market continues to struggle here. we're down about 215 on the dow and below 1900 on the s&p. on a day where the news has hit fast and furious. it began with more hard landing fears in china overnight as industrial profits came in, down 8.8. that led to more concern in europe. specifically regarding glen core. and a massive intraday decline that, according to some analysts, has some worried about equity value long term if commodity prices stay here. alcoa splitting into two companies. headlines on square and twitter. whole foods laying off 1500. it's like three days packed into one. >> then we didn't even mention data that had very little to write home about. personal income a touch lower than expected. pending home sales down 1.4%. which is now adding fuel to the

conversation about whether the housing recovery actually may be using some steam. >> cramer this morning mentioned art cashin, who joins us, mentioned 1867 as his short-term target. wonder if you've got some of your own? >> that's a longer range. that would be going back to the lows of the 24th infamous last crash kind of thing we had. we've got two negative pressures working on us. oil, which is dipping down and threatening to challenge the $44 level. the other thing is the bio techs that got beaten up so badly. so the viewers should watch the russell, if you can get it on your screen, it needs to defend 1,100. if it breaks 1,100, we might get a little cascade selling after that. so we've already broken 1,900 in the s&p. so we probably got the weakest of maybe another eight points there. so i would keep my eye on the

russell. if oil goes down, that will put pressure on the market. and if the bio techs break that 1,100 level. >> is is there any follow-on nervousness from the events of the last week, the unexpected pending resignation of john boehner, what the impact of that is going to be? >> yes, people are trying to figure that out. will he try and get together as big as package as possible before he leaves. it's pretty apparent that the guy sacrificed his career to make sure we wouldn't have a government shutdown. but that's going to lead us to a debt ceiling problem. and right before christmas. and right when the fed meets, perhaps to decide whether they move rates. the fed funds people don't seem to believe it any more. even with dudley coming out. it's slightly under a 40% chance. >> we have chairman yellen speaking later this week. also from the feds, dan fisher

speaks on friday. how are we going to look going into the fourth quarter? >> this could be bumpy. it's not only just the third quarter. in a lot of places, it's the fiscal year. in japan and other places. you'll see major window dressing and things of that type going on. so these next two weeks look like they could be pretty bumpy here. you know, you remain seated until the ride has come to a complete stop. >> does it fit within what we suspect the last two weeks of september are usually like? >> so far, it does. unfortunately. that is not very pleasant and often filled with some negative surprises. and we have the u.n. we have yet to hear from mr. putin. see where they go from there. there's a lot of balls in the air here. we're not sure how they're going to come down and how gently. >> icon releasing parts of the video he produced. we'll see more of it tonight. his view is that we're in for

somewhat of a world of pain. that at least he's hedged more than he has been in years. how seriously do you take comments like that from someone like him? >> i'd like to see a little bit more of the detail on it. you know, hedged is not outright i'm so disgusted i'm short and whatever. so there's kind of a protective quality in there. but i do think that, as i say, we've got a lot of things on our plate. this is a positive lazy susan of things coming at us. it's going to be a very, very interesting two weeks here. >> the u.s. has been particularly strong. where a lot of other areas have been weak. if we get this increased u.n. uncertainty, there are any silver linings you see out there, can kind of take the baton from the u.s. economy? >> well, you know, i hear all these people saying that if they do hike rates, that will mean they have enough confidence in the economy and things will move ahead. i'm not really sure that that's

so. i think there are enough things around to make people more than a little trepiditious and deservedly so. >> you know, we think about some of the smaller companies that have seen their valuation just come in so sharply since august. most of them don't really have ripple effects in the broad economy. when you see a company like glen core use a third of its value. have a report say it's equity could be wiped out, are we getting to where this could have systemic implications? >> i don't think another lehman moment. but we're going to have some connectivity in some of these remote areas. people keep talking about china's not as weak as it looks. yet, no one is fully sure about that. you might begin to get some spillover in europe and other places. yeah, glen core is on life support, for sure. >> yeah, a lot of charts of glen core's cds floating around. the fact that alcoa's splitting tells you something else about

what other companies will do. >> being in the commodity business is not a good thing at this time. >> art, thank you for that. >> my pleasure. >> director of floor operations for ibs. thank you for that. for the time being, let's get to headquarters, wapner and the half. >> all right, guys, thank you so much. there's your market picture. as the halftime show comes on your air. noon in the east. not a pretty picture down on wall street today. the dow jones industrial average down by 1.3%. the s&p down 1.75%. the damage, yet again, most strong, to the nasdaq, down 2%. bio tech continues to get hit. extraordinarily hard. the market stories today that we are following, there's the glen core story that the guys on squawk on the street were just talking about. concerns about what's taking place in the high yield market. data here at home, not