notwithstanding we are still bullish on healthcare, it's a sector for all seasons. within the sector you can have rotation between defensive and pro growth. with the innovators we're still bullish on them. there's still near term weakness to have had. >> a real pleasure. thank you. melissa, big show tonight at 5:00 we'll watch that. "closing bell" starts right now. >> announcer: this is cnbc breaking news, market selloff. >> and welcome to the "closing bell" i'm kayla tausche kelly evans will be joining us from the buckeye state shortly. >> i'm bill griffeth. the volatility continues on wall street street, sometimes it's a 200 point gain, today it's a 300 point decline. china growth concerns weighing on commodity driven stocks for one. take a look at some of the big

mining and oil names and you will see they are all under pressure today. energy transfer equity down 11.5%. the williams companies down 10.6%. this is just one sector. we haven't even gotten to the biotechs yet. >> and financials, too, are down big, too, because of her counter party exposure to some of these mining names. safe to say the biggest loser is the nasdaq. it's getting dragged down by biotech yet again. the ibb down 6.25% just today, down by 15% this month alone and in the last couple of hours we got news out of washington dealing yet another blow to valiant pharmaceuticals. >> so much price pressure on that sector and that seems to be what's causing a lot of the selling. plus kelly is going to be part of today's show, we will have the read on the u.s. economy and the consumer from the heartland. she's got the ceos of

international paper and windy's live from i paper's factory in ohio. that's coming up in just a few minutes. let's start with the selloff tomorrow. mary thompson is spending the day for us tracking some of the selling here. >> it's been quite a day, bill. the markets were down at the opening bell, behind it weakness in chinese corporate or industrial products, weakness in the commodities space continued weakness in biotechs, all this have contributing to yet another decline as the dow is off almost actually at its lows of the day right now, down 307 points. also concerns about the upcoming third quarter earnings season here in the u.s. all contributing to what's a down day pretty much right across the board, the only thing getting a bid right now is the bond market. we're seeing weakness in healthcare reflecting the continued decline in biotech stocks, energy stocks under pressure, materials as well. the commodity space is weak despite the weakness we're seeing in the dollar today and consumer discretionary stocks down as well.

disappointing numbers on pending home sales hoping to put pressure on the home builders and that's one reason we're seeing a pull back there. among the dow movers the only one in the green today is intel the last i checked the rest of them being pulled lower, the leaders include visa, united healthcare, goldman sachs which had a price cut as well as pfizer. as well as the s&p movers, this pretty much reflects the concerns we've ban talking b biotech stocks particularly weak and energy weaker. the dow is off 302 points off its lows of the day. >> mary thompson on the floor, thanks. let's get to jackie deangelis for details on the skmodities crush we have seen today and many days before t jackie. >> good afternoon. that's right. really not a good bay twooi start the week when you looked at the energy complex and selling in the metals as well. when you you get news like this

out of china you see a sell offer in the space. anything that's related to industrials. so not just the energy commodities, but also the metals as well. gold having a rough day, more than $10 drop, broke 11.50 last week, couldn't hold, oil seeing a 3% decline. 44.43 is where we settled and traders think the selling pressure could continue. it's not just what's happening in china it's what's happening here as well. traders had discounted the fact that we would get a rate hike but you had janet yellen last week, dudley hinting at the fact that it could happen as soon as october. if that's the case when it comes to commodities that will send the dollar higher and will send these commodities lower so that is one of the concerns that trade remembers worried b when it comes back to oil and comes back to the energy space, supply and demand has not worked itself out so when there is weakness in china and concerns about who is going to want oil, who is going

to use oil you see selling pressure like this. the volatility continues. >> all right. jackie, thanks very much. let's talk about all of this in our "closing bell" exchange right now. we have onmanly from wells fa o fargo, peter kosta s rick santelli of course is in cubby land where they clinched. congratulations to the cubs there. peter, conversations around here on the floor tells me that an awful lot of traders are licking their choms waiting for the market to get back to the august 25th lows and i think you are one of those, aren't you? >> yes, i am and, bill, i've been saying it for months. when we get around that level i think that that's when the cost of family fortune will get back involved. i want been in the market since november of last year. i do think once we reach those lows -- there's always that chance that the market is going to break through 1850 and go to the next level, but i kind of think that that's going to be the bottom for at least this

phase. >> john, there are so few safe place toss play in this market, especially in a quarter with as much carnage as we've seen. normally when you get to the last couple of days of corner the term we hear a lot is window dressing. how would you dress your windows on your portfolio is such a thing is possible right now? >> i don't know if it's possible on a day like this. traditionally when things get bad you hide in drug stocks, you listen to the chair of the federal reserve. i think it's very, very difficult market. i don't think the fed is going to tighten, i don't think the valuations are too high. i do think the earnings are coming under a little bit of pressure coming into the end of the quarter and it's not just this quarter it's looking out to next year as well. i don't think china is as weakening as people think it is but i think you have to watch the earnings. they are not acting well. >> what do you think the message of the markets -- not just equities, but commodities, the treasuries and everything out there. what's the message right now do you think? >> i think it's the same message. i think it's wrong -- the calibration is wrong.

when we talk about the glen cores or china it's always under the guise that these commodities are a proxy for demand, but that's only part of the story. there's also a recalculatiibrat the fly because it was a sector that was overfunded for years. the stockpiles of copper in china then the stockpiles were used to collateralize loans. i could go on and on. the glen cores of the world couldn't have done -- or gotten in trouble if it wasn't easy access to liquidity. it's a two front war. imagine the world if all commodities were -- the stockpiles and all inventories were pretty much at zero. we would see a cleaner demand picture but maybe not the type of trading commodities. i think this recap grags is on so many levels with interest rates as well and it's gone going and it's going to continue to go and i know that peter says the family fortune is going to buy a dip and i'm not saying

that's incorrect, but remember, we're thinking the market is going to act orderly when it gets to those support levels. it didn't act orderly when it was taking out resistance and defying the fund amount als of the economy not that many years ago. >> peter, we're looking at levels s&p blew right through 1901 this morning, dow is pretty close to a 15 handle which we haven't seen in quite some time and then you have the russell which has just had a stunning move this quarter down 14%. you wonder how much technical damage has been done. how much technical makeup needs to be done now. >> i think that you're probably going to see at some point this week some making back of that technical damage, but the bottom line is i still think the s&p is ripe for hitting 1850. a lot of people like to say when you hit a level like that you want larger volumes as a sign of a bottom. we're not going to see the volume part of it but we definitely will see it bounce off of 1850 at some point.

>> you and i were joking earlier, i asked you when you finally do get back into this market what are you going to buy first, biotech or energy? >> i'm not buying biotechs, to me it's an extremely volatile industry and i don't understand enough about it to put my money to work in it, but definitely as far as the energy sector, i do understand their makeup and looking at it and as we were talking about before, you know, the supply and demand issue is going to be probably that's going to carry forward for a while because i think that until you get a better handle on what's going on in china the supply and demand issue will be there. we've had this problem for a while now and we've basically bounced off 37 and $40 a barrel oil. i think that's where the bottom is and long-term the energy sector has probably got very good upside potential. >> john, anybody that comes through here and still bullish on the equity market typically will give us the fundamentals, the economy is improving, you

know, earnings are not as bad as expected and so forth, but -- it's the old adage, the economy is not the market and vice versa and this market selloff really doesn't feel like it's responding to economic reports lately, does it? >> no, it's not. i think it actually is looking out faster than it usually does, usually the market gifsz you some time usually if the economy rolls over, this was true in 2000 and 2007 you had got warning and time to do something. this time there was no time. it's very coincidental. the rules aren't working the way the rules usually work. what we said earlier about a recalibration is probably a good point. we have to let it settle. i'm not in a rush, i still think there's great potential out there, but i'm not in a rush, let it settle. >> we'll see who gets in first, john manly or peter kosta. see you later, rick. chance right side the international paper plays a part in your life every day from paper for your printer to coffee

and soda cups at starbucks, wendy's and shake shack. we have kelly evans walking us through an international paper plant in ohio. i'm told we have a huge audio play. the audio play is longer to canton, ohio, than mars so i'm going to slow throw it to you and you can tell us what you have coming up over the next couple of hours. >> the time of that delay we're probably going to see ten more cups shooting around me in this fact richlt i love a good economic indicator. the cardboard box indicator one of the best. who can figure out what's going on with the data these days? we talked to international paper, we've gone right to the source, we've actually gone to the source of the paper cups, call this the coffee cup indicator. right behind me is where we're making these very cups for wendy's. you have 150 cups which come out of this machine, shoot over my head and get back ajd. these are self insulated cups

which helps to eliminate a step for wendy's and some of the other fast food drive tloous. now, let's come over and look at one of the machines behind me. this one makes 330 cups an hour. it's a high speed machine that, by the way, goes for about a million bucks. what do we want to see in this economy? we want to see more million dollar investments in these kind of super fast machines because every single cup flying over my head is a source of demand in this u.s. economy. we're going to talk more about what's really going on on the ground with the ceo of international paper mark sutton coming up in just a little bit. we also have the ceo of wendy's joining us as well. so much to talk to these guys about, especially as we watch these markets so concerned about what the pace of global growth is really like. there's a whole lot more ahead here in canton, ohio, guys. stay tuned. >> all right. >> that is a mesmerizing live shot, it's like an obstacle course. >> technology playing a role in the old economy. kelly, i'm begging you for a

hair net selfie at some point over the next hour here on "closing bell." >> we have a news alert on golf company titleist. >> we're learning that the parent company of titleist is considering going public and according to a source familiar with the situation they have approached some of the u.s. banks, among others, about the possibility of doing that sort of deal and hammering out what the details may be. it sounds as though a so-called beauty contest where the banks compete for the mandate, the job of taking a acushne tcht is com soon. could have a public company with titleist as an important unit in the coming months. >> the golf industry has

struggled for years but acushnet has been one of the few bright spots in that area. it will be interesting to see what kind of reception they get. >> it's a power fortunately brand and popular sport. >> skate kelly, thanks very much. see you later. >> we're heading to the close here. if you are just joining us, big sell off today to start the week off, the last week of the quarter here with the dow down 323 points. >> and up next, biotechs getting hit again today, part of the nasdaq which is down more than 3% and our meg terrell has a special report on why this inspector is having its second worst month ever. >> also, believe it or not, there are a few green spots in today's market, alcoa among them and we will explain why they are bucking today's selloff when we continue on "closing bell." stay tuned. [ male announcer ] eligible for medicare? 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, insured by unitedhealthcare insurance company. like all standardized medicare supplement insurance plans, they could save you in out-of-pocket medical costs. call today to request a free decision guide. with these types of plans, you'll be able to visit any doctor or hospital that accepts medicare patients... plus, there are no networks, and virtually no referrals needed. join the millions who have already enrolled in the only medicare supplement insurance plans endorsed by aarp... and provided by unitedhealthcare insurance company, which has over 30 years of experience behind it. with all the good years ahead, look for the experience and commitment to go the distance with you. call now to request your free decision guide.

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. welcome back. 43 minutes left in the trading session. if you are just joining us, yes, we have a selloff going here. the dow is down 308 points that's good for that 179% decline, the s&p down 2.5. the biggest decliners, though, in the nasdaq biotech, leading that lower. let's just show you before we

get to that, more on that, the heat map as we call t the sectors inside the s&p 500 index, utilities, everything is lower. sectorwise, the utilities are down the least, down two-thirds of a percent and healthcare down the most right now. >> close down to 4%. biotechs sinking again. wiping out all of its gains so far in year. meg terrell joins us with a closer look at what's been beating down this sector. safe to say janet yellen warned us of this a year ago. >> this seems bigger than that. now the person in the limelight is hillary clinton a lot of this is tying back to what simmered up in this drug pricing debate. this has been simmering for a long time but it's reaching a boil right now as hillary clinton came out with her plan to combat what she calls price gouging with awful this attention being paid to the industry over this one private

company turing pharmaceuticals rising the price of that drug by 500%. because biotech has been outperg for the past five years nonspecialists have come into space and may be thinking now is the sometime where there is a lot of fear, time to take some off. today we are seeing negative headlines on valiant. we're wearing that a congressional committee wants to subpoena that company and try to get their ceo to appear in front of congress to answer questions on drug pricing concerns. i'm hearing two things that i want to address which is i just had lunch with an list over there who says that during election cycles, over the last four presidential elections biotechs have typically underperformed when compared with the prior market. >> because it becomes -- drug pricing becomes a campaign issue. >> it is a hot butt boston

issue. they say as long as there is no clear republican contender for hillary clinton right now because it's kind of unclear what's going to happen on the republican side this is going to continue to be front and center. >> it's one thing to have smaller companies like niche drugs like turing. to have one or two products they kick up the price, that's where their earnings come from. now for this to be hitting valiant, too. is this going to be an across the industry, across the sector phenomenon that's going to basically take no prisoners? >> yeah. it's been hitting the rest of the industry, people have been targeting cancer prices, targeting other things. so the question becomes people are take incremental price increases every year, every six months on drugs for lots of different citizens. >> before we let you go, what's the ultimate fear? i mean, that there's some sort of bill coming out of congress that puts a cap on prices? >> the biggest fear is that hillary clinton or whoever becomes president will enable medicare to negotiate on drug

prices giving the government, the u.s. government, the power we see in european countries where prices are much, much lower than in the united states. >> so the selling is happening now because there's no place to hide basically if that ends upcoming to pass? >> maybe. people don't expect that to come to pass there is just a lot of fear happening and that's cycling through. >> good to see you. thank you. let's get back to head quartz, morgan brennan has a market flash. >> thanks to bird flu, no the company has not experienced an outbreak of the sooirs, rather higher costs of purchasing eggs and increased bio security weighed on the results. still reporting record revenue and products, cal maine stock up 30% as competing egg producers were affected by bird blue flu, analysts expected them to have greater expectation.

shares of cal maine down 12%. >> yes, cracking those expectations. i saw what you did there. morgan, thank you very much. see you later. 39 minutes left in the trading segsz here. the selling -- we're holding steady but it will be very interesting to see what we do in the final 40 minutes of trade here. do they continue this selloff or is there a come back of sorts? we'll see. >> the momentum has seemed to be toward the down side, we saw the dow dip below 16,000 but it is just about 10 points above that right now, but up next the new ceo of international paper will speak exclusively with our kelly evans. find out what's worrying him the most about the global economy and how that could affect his profits. >> also ahead alcoa is splitting itself into two separate companies and investors like that move. we will have details on that coming up on "closing bell." stay tuned.

but what if you could see more of what you wanted to know? with fidelity's new active trader pro investing platform, the information that's important to you is all in one place, so finding more insight is easier. it's your idea powered by active trader pro. another way fidelity gives you a more powerful investing experience.

call our specialists today to get up and running. take a look at the dow, close to session lows, down 316 poing points, down for the fourth time in five sessions and at its lowest point since september 1st. the dow and s&p and nasdaq down more than 10% this quarters alone, looking at the dow,

goldman sachs shaving 42 points, it's the biggest lag guard from a point perspective, bill. >> how many years have we been waiting for a 10% correction, and, boy, are we getting one now. let's look at a couple of movers. media general surging after broadcaster next star offered to buy the local tv station owner for $14.50 a share. next star's previous offer was rejected last month, media general agreed to sell to competitor meredith processing, the next star deal would create the second largest tv operator in the united states. alcoa is bucking today's downward trend, the aluminum maker planning to split itself into two bubble clee traded companies next year, one of them will keep the alcoa name and continue its legacy commodity business, the other company will include it's tranls portion and construction business, what alcoa calls its value-added basis and ceo clause kline felled will run that new entity.

>> if you've been to starbucks, wendy's or pan ra recently you have used products made by international paper which is why the company is often seen as a consumer and economic indicator. >> let's send it out to kelly evans who is got an exclusive interview with ceo mark sutton there at that ip factory. kelly, it's all yours. >> thank you very much. mark, welcome and thank you for having us here. >> thank you, kelly. we are happy that you chose to come to our canton facility, our employees are proud what have they do here and we thank you for coming here as well. >> we will get into some of the changes that happened there's 70 million people around here. let me begin with some of the things that are driving these markets lower. in markets where you do business, including china you were early to say that you saw flat lines in china. have you seen a decline. >> the business that we are in in client we make boxes in china, we have seen flat growth. we also make coated paper board,

nothing has really changed, it's been flat for a while. the chinese market is important for us, we also supply it with imported products from our russian joint venture where we have seen increasing demand. a lot of that product goes into tissue products and from some of our u.s. businesses like fluff pulp for baby diapers. increased demand sunshine creased demand in russia, that's interesting. what about brazil, you must be pretty concerned. >> brazil is an important market. two businesses in brazil, the packaging business is affect by the brazilian economy and our paper business is interesting, though. we export 50% what have we make in brazil to the rest of latin america and to europe and asia. so that business is actually holding out pretty well because only a portion of it is dependent on the brazilian economy. >> let's get back to this country. obviously your biggest market the u.s. is and many are wondering can this hold up as an

oasis where there is growth where so many other parts of the world with struggling. what can you tell us about the volumes especially in recent weeks right here? >> the biggest indicator is our corrugated box business. year to date it's up 2%. probably softened a little bit in the last month or so, but still a good steady growth rate and we see some early indicators about holiday season so we feel pretty good about demand for the corrugated business and it's really tied to nondo you remember abls and you can see the nondurable numbers, what the consumer is doing. >> i'm assuming nondurables would be the paper cups. >> the stood industry, restaurant industry, the kinds of things that consumers spend money on that's not automobiles or really expensive durable goods. >> and a window into how a paper company transition noose a digital age, you're seeing a volume growth there. you mentioned it's really this area that's helping you guys. there are a lot of people concerned about the more

durable, the manufacturing parts of the economy, the more export driven ones and just asking if we're seeing a real slow down in the manufacturing sector of the economy at hand here. >> so i think that's a great question. the issue of exports, we export 25% what have we make in the u.s., but the secondary effect of our customers' business maybe being impacted by a strong dollar is where we see some demand issues, but exporting the kind of products we export from the u.s. as far as products industry, they're globally competitive products and the demand is there because the product is needed. what we see is some profitability in margin erosion when we go through these currency changes. >> actually i think one of the analysts at key banks said he expects you guys to see your earnings by measure end da decline this year and next year and your stock being down in the upper 20% year to date probably reflects that. >> i think it reflects if you look -- if you look over the last year the s&p materials

index is down 19%, we're down 22 or so so we're tracking that index pretty well. for all the reasons you just mentioned. >> you are as hopeful as anyone about a turn maybe in the commodities cycle. >> we have a long-term view, our base performance as a company and industry is good, cash flow is very strong, we've got good demand, great assets and a real talented work force. we will weather this and come out the other end okay. >> two of the policy issues important to you and a host of other businesses include the export-import bank you mentioned your export business or that you're related to, the highway transportation bill, you guys spend $2 billion a year on the roads. both of those will they delta set back these initiatives important to you with the upcoming resignation of house speaker john boehner. >> it's possible that there could be reshuffling of priorities, we're hopeful when the new leadership gets in place that it will be pro business leadership. i think the jury still out on that. both of those are important and

we think we will just continue with our work and hopefully get back on track. >> speaking of is that work, you have about 700 employees here. >> that's right. >> just talk a little bit about are you seeing any problems in finding skilled workers? is there still a plethora? what's happening with wage inflation here as a micro could say m of the economy what are you experience at this plant? >> there is a great example of where we do a lot of our manufacturing, it's not in big cities, it's smaller tounls. we're seeing differing accent to talent based on where we are in the country. one of the reasons we expanded this plant in canton is because of the skilled labor and work force. we had a good base to build off of, but sometimes we have to get involved in the schools all the way into high school, vo-tech colleges, other times we just hire talent, people who can work on teams, have the right attitude and we can train them in the technical skills we need. i think we have a competitive wage and benefit package here where we can attract really top talented workers. >> and no shortage of us

drinking our coffee each morning, mark, out of one of these paper cups. >> that's right. >> thank you so much. great to talk to you. mark sutton with a look at what's happening really in the global economy. giels. >> all right. >> and taking long-term view at that, kelly. fantastic stuff. kelly wechbs mark sutton. >> we will see her later with the ceo of wendy's. >> sometime for a sknk news update with sue herrera. >> here is what's happening this hour. president obama addressing the u.n. general assembly calling for more cooperation to fight isis. saying the u.s. is ready to work with any nation to resolve the conflict. he also said the u.s. is increasing the number of refugees welcome within our borders. britain's opposition labor party says companies like google and starbucks will be paying their fair share of taxes in england if the labor party comes to power. it says it will force multi-national companies to anti up on taxes to fix that country's public finances. many americans are relying too heavily on social security

when estimating their future income, that's according to a survey released by aarp. the study reveals half of consumers aged 45 to 64 expect social security will become a major course source of their retirement income. and mars appears to have flowing streams of salty water at least in the martian summer. nasa scientists reporting is that today. the finding could have major implications for the possibility of life on the planet. earlier tests confirmed the existence of frozen water. this is the first time liquid water has been detected. that one is for you, bill. i know you you look that stuff. >> i am a huge astronomy buff and i have already on twitter seen the pictures of the martians water skiing. >> did you see the super moon, the blood moon last night? >> i did, yes, when the cloud cover would allow it. to it got in the way a couple times. >> so cool. >> thanks, sue. >> see you later. just less than a half hour before the scloesing bell. dow and s&p still sharply in negative territories, dow down

by 292 points, pairing its losses just a bit. we will see how we look going into the final anyone else of trade. >> one trade already tell us what he's watching into the close and this final and most important half hour of the trading day winding down. stay tuned.

take a look at where we are in trading. the nasdaq fairg the worst of the major averages down 2.75% led by biotech and a steep selloff in energy. solar stocks taking beating despite the fact that climate change is at the top of the agenda at the u.n. general assembly. take a look at a basket of solar stocks. first solar down 5.5%, sun power down more than 8%, solar city down 3.5% but sun edison is down 18%. bill. >> it's tough to find a second store that's not getting clobbered today. we were wondering will they continue the selloff or maybe try to come back? joining me on the floor of the

new york stock exchange matt cheslock. we are blowing through a lot of those mefls. where do you see support here? >> obviously a lot of people are talking about the s&p support around the 55 level. 1855 level. i don't know if support level is going to hold, technical analysis may be out the window with what we're seeing. there's so much out there, there's so much out that's not just stock related, jie owe political related, i don't think technical levels are much to look for. maybe we will get the reversal we saw in china last night, they were down 1.6% in the last hour, they closed up 4%. >> are you look to go buy something at some point? and what would that be? i was joking with costa, are you going to buy biotech or energy first? >> biotech is probably not done y yet. we are starting to see a bullish

bet as far as traders go. that's found some support level above 40, i would be a buyer in the energy sector over the bio stek sector. >> thanks, matt, very much. >> meanwhile bertha coombs is up town tracking today's selloff from the nasdaq. >> we're watching the nasdaq, it's still holding above the august 25th lows as is the nasdaq 100, but where the volume is where we've seen things break and that's where the russell 2000. below those august 25th lows today, breaking below 1100 right back below where it was at the end of the september quarter a year ago and it's one of the worst performers. large caps today very few at all have been in the black or in the green, if you will. intel had been higher on the day, it's been either side of unchanged at this hour and apple after announce that go 13 million record sold still not

getting any respect today and the biotech etf 10.5 million shares already crossing the tape, kayla, that's four times the average volume. you have got to think we might be somewhere near some sort of capitulation when you've got that much negative sentiment. >> you would think so, but we'll see. as we love to say in this business, bertha, as you know, time will tell. >> yes. it will. >> thank you. see you later. 19 minutes left in the trading session here. we've come back a little bit, the dow down 272 points, but the one we are really watching as we've been highlighting, the nasdaq and those biotech stocks. >> mining and trading company glen core hitting its all time stock lows. up next kate kelly will tell you what this could mean for the entire mining sector because zen core is such a huge part of that. >> and still ahead we will get back to kelly evans in hor and she will delve into the fast food wars with the ceo of wendy's. all of that coming up on the

"closing bell." stay with us.

beating again today over in london. >> kate kelly has been tracking what the struggling of the

mining giant could mean here and abroad. today's headlines are tough to stomach. >> that's right. glencore led a massive down draft in mining stocks today and the crazy thing about it is there really wasn't hard news indicating that the generalized fears around this name is making the market sensitive. today's is that the research firm invest tech raised concerns about earnings at glencore if the price of commodities remains relatively lois a scenario many are predicting. that report led a 24% decline at glencore today. glencore has taken steps to address concerns about its net debt which is a major factor weighing on investors right now in the cash dependent commodity production and trading business, but that includes a recent $2.5 billion equity raise and planned sale of assets including a piece or wlaps even all of its ago

cultural business if worse comes to worse, but for now that isn't really doing a lot to quell fears, the company is held largely by -- well, the largest shareholder is ceo ivan glazenberg followed by can a tear wealth fund and another large holder harris associates stood told bloomberg that the move in the stock was unwarranted if you look at the fundamentals. some show of support for the name but at the same time it's not stopping this falling anvil of market concern. >> kate, in the past we've talk about glencore like a black box. when you look at the market today one of the reasons why goldman is the biggest lag guard on the doubt is because people are trying to price in some counter party risk for goldman sachs and morgan stanley and some of the parties that may hold the debt. do we know anything about who is on the other end of some of their holdings? >> i took a look tachlt they have a revolving credit

facility. they renew it every month. some of the lead names reportedly are b and ppareba, citi group, ing. i placed calls to a couple of those parts and haven't heard much in the way of comment. they don't really need to take a close look at this again until spring of next year for that june renewal. the other thing that could happen and it's a great question is what happens to their counter parties on these trades? the trading business in glencore terms is simply the buying and selling of martin luther king r physical commodities like oil around the world it's not so much hedge fund type trading allow they do a little bit of that. if they are not considered a good credit, if the fear is that they can't pay for the shipment of bunker fuel or the shipment of copper that they have in the works, that's going to create real issues for their business. they need a lot of cash just to make that day to day trading which is a key part of their business other than the mining and production work. so that's definitely something to keep an eye on. >> what we're doing is dusting off some of the counter party

questions we were asking in 2008 as it pertained to some other companies at that time. that's what's going on with glencore right now. >> you don't want for an alarmist and even today i spoke to people that are supporters of the name and think this is over done, this move, but there are some comparisons to 2008 happening. >> and with a report titled bermuda triangle you have to bonder. >> that's right. >> heading to the close, 12 minutes left in the trading session here. kind of holding with the dow down 268 but really it's the -- some of the other indices and averages we're watching very carefully. the nasdaq hardest hit today down 2.76% right now. we will go back to ohio, kelly evans back with the ceo of wendy's among other things in just a moment. stay tuned.

facebook. seema mody give us the gory details. >> some people have been voicing concern about facebook not working. well, facebook just updated their status page to say that they are experiencing a major outage. that's the only detail that we have right now, that they are experiencing this outage. it doesn't seem to be having an impact on the stock, shares are basically trading flat but we

will of course keep you updated on this story. bill for now back to you. >> i tweeted out on twitter a little while ago the top story on twitter is that facebook is down. that's where everybody has gone. thank you, seema. earning season is quickly approaching and according to the s&p capital iq we can expect to see a 4.6% decline in the standard and poor's 500s earnings per share. joining to us talk about that sam stovalt from s&p capital iq. we were talking during the break. not a lot of people are focusing on earnings yet, we have too many other things to look at right now. >> right. and also in a sense earnings estimates have been crying wolf for quite some time. i wrote in my report fool me once, shake on you, fool me continuously shame on me. and that's exactly what's happened over the last 14 quarters. the actuals have outpaced the estimates by an average of 4 percentage points. >> one of the reasons why it's been so easy to overlook the perceived weak innocence earnings is because we like to

look at things excluding energy, excluding financials and when you strip out some of the worst extrapolations of what's happening in different sectors, it looks pretty good. >> oh, it does. actually, if you -- as you said, take out energy, which is expected to be off 66% this quarter, then the s&p 500 is expected to be up about 3.2%. so things actually look pretty healthy under the surface. you have a couple of other sectors like materials which should be down close to 12%, consumer staples off 3.5%. a lot of that has to do with the earnings translation overseas because of heavy international exposure. >> you have had the strong currency, lower energy, the biotech take out. all these issues are going to be some things that would come up in the forward guidance for these companies. >> absolutely. these companies are going to be using them blaming the 50% third quarter of this year versus third quarter of last year, 50%

decline in energy prices. the 16% short -- strengthening of the u.s. dollar as we talk about earnings oil prices, et cetera, that awful those things they are going to be blaming and china in particular i think they are going to be focusing on as well. >> good to see you, sam. thanks for joining snus thanks for having me. up next we're coming right back with the closing count down in just a few minutes time. >> after the bell kelly evans returns, she will talk exclusively to the wendy's ceo about his plans for the fast food giant in a highly competitive field right now. you're watching cnbc first in business worldwide. you may think you can put off checking out your medicare options until you're sixty-five, but now is a good time to get the ball rolling. keep in mind, medicare only covers about eighty percent of part b medical costs. the rest is up to you. that's where aarp medicare supplement insurance plans

insured by unitedhealthcare insurance company come in. like all standardized medicare supplement insurance plans, they could help pay some of what medicare doesn't, saving you in out-of-pocket medical costs. you've learned that taking informed steps along the way really makes a difference later. that's what it means to go long™. call now and request this free decision guide. it's full of information on medicare and the range of aarp medicare supplement plans to choose from based on your needs and budget. all plans like these let you choose any doctor or hospital that accepts medicare patients, and there are no network restrictions. unitedhealthcare insurance company has over thirty years experience and the commitment to roll along with you, keeping you on course. so call now and discover how an aarp medicare supplement plan could go long™ for you. these are the only medicare supplement insurance plans

endorsed by aarp, an organization serving the needs of people 50 and over for generations. plus, nine out of ten plan members surveyed say they would recommend their plan to a friend. remember, medicare doesn't cover everything. the rest is up to you. call now, request your free decision guide and start gathering the information you need to help you keep rolling with confidence. go long™. ♪ when you're not confident your company's data is secure, the possibility of a breach can quickly become the only thing you think about. that's where at&t can help. at at&t we monitor our network traffic so we can see things others can't. mitigating risks across your business. leaving you free to focus on what matters most.

welcome back. about three minutes left in the trading session here and this selloff continues. i just want to show you we're going back to late august. don't quite -- i don't think we can get to see the lows from august 25th with this chart, but this is the dow, the s&p and the nasdaq and over this time in the one month the dow is down 3.6%, the s&p down 5.2%, the nasdaq the hardest hit down 5.73%. why? we've established the biotech sector. so in this same time period we will look at the ibb, the nasdaq's biotech etf and in that time over one month it's down 17%. mary thompson is here with me.

that's breathtaking. one more chart even though that one -- we could just stick with, but the price of wti crude here in the united states, look at the volatility in crude over that time. today it's down 2.7%, but it's been stuck in a trading range overall in one month it's down just 1.6%. how about that bio they can chart. >> it's hard to look at. again, there was more concern about the prices within we had the house democrats requesting a subpoena for valiant pharmaceuticals today. that is obviously building which will continue to put pressure on this group. a number of traders say you have to see crude break out of this trading range if you want to see the markets going up. they say that's one of the reasons we're seeing this overall market stuck in this range, although we seem to have broken a bit down to the down side today. >> there is a sense of anticipation, it's almost like we're going back to the august 25th lows. >> yes, everyone will be watching that tomorrow for the

s&p 500. >> we are not that far away. >> no, it's 1867 and we're looking right now it's 1882 right now for the s&p. everyone is going to be foggy used on that. sometimes when you have something like that out there, a level like that, the markets just want to see it, touch that level. >> it becomes a magnet. >> yes, and then you kind of take your next step, whether it be a leg down or up but they want to get that level. we will be watching that over the next couple of trading days certainly. >> where do you go to hide? really right now even the defensive sectors, the traditional ones and the utilities i think of especially they have been down today as well. >> there wasn't anyplace to hide unless you wanted to go into the treasury market. bonds were the beneficiary, you saw a flight to safety there. even if you look at gold, not the case today, even with the weaker dollar it was higher earlier, then it turned lower, didn't help the commodities space at all in today's session. so today you get the sense of a number of investors were throwing in the towel. again, i think it's very

important to watch that level on the s&p to see what kind of turn, whether we see lower or higher after that. >> thanks, mary. we are going out with some pretty decent declines right now, down 300 points on the dow, the s&p getting ever closer to that august 25th low. that and much more coming up on the second hour of the "closing bell". and welcome to the "closing bell." i'm kayla tausche. here is how we are finishing the day on wall street. stocks getting off to a slumping start for the week. the dow at its low was down 333 points, we finished just above that. the barely above that 16,000 level. the s&p 500 and the nasdaq trading near their lowest points since august 25th and we are watching to see as mary and bill just said whether we will retest that august 25th low of 1867 on

the s&p. not stood, bill, but perhaps tomorrow. joining us for the hour we have catherine van belt from the "washington post" and for more on today's market we are joined by ron mullen camp and "fast money" trading tim seymour. welcome to "closing bell." tim, we will start with you. what really set us up for the weakness is that industrial profits number out of china overnight, down 8.8%, the lowest number since state officials began recording it in october of 2011. and then we got that invest tech report on glencore, it just seems that the troubles are mounting for mining and materials. the worst is not even close to being over yet. >> and this all leads to a credit event ultimately if that's where equity markets are looking at this. the credit contraction has so many implications for equities including cheap access to credit, high cash balances, buy backs, things that inspired the he can writ market, china we get a pmi number this week, we will see if that continues to trend which has not been good.

with glencore they are going after it. "fast money," people that believe that these guys actually have a lot more pain the minute that they get downgraded and you can see what's going on in cds. there are other players out in tl in the commodities space, i would be watching ma tell and other big balance sheets. glencore is not alone. right now they seem to be the poster child. >> catherine, seven straight down days for the biotechs ever since hillary clinton tweeted out she was keeping an eye on drug price and would come up with a plan that would cap drug prices. washington very much has the drug industry in its sites right now. >> yes or no. washington has allegedly been going after the drug industry for years. >> every four years it seems. >> coincidentally, yeah. i mean, obama has proposed a bunch of the same bullet points that hillary has proposed that even bernie sanders has proposed and they haven't really gone anywhere. so, i don't know, i feel like some of this concern about regulatory interference might be a little bit overblown. >> you think this is overdone at

this point? >> it just seems unlikely anything is going to happen anytime soon. >> when you think about where to put your money the fact that the biotechs have retraced to the extent that we have, the fact that financials might not get a rate hike until next year and then who knows how much the consumer will be spending going into this holiday season. if you had to bet on a sector right now given the state of the u.s. economy and global economy where do you go? >> you just gave a decent litany there, but i can tell you that propane at the well head sells for 6 cents a gallon. for the people with balance sheets you can either say there was a lot of people going to be trouble in commodities or you can say there's a few people that have decent balance sheet and they can accumulate more money. we do think that housing still has some legs to go and the whole thing -- the trouble with drugs and with biotech is that the rhetoric risk is going to last probably for another year, i find it fascinating that we

are making -- what we're doing in biotech is stew bend douse and we have other people saying it should not only be a wonder drug but it should be free. hopefully that gets sorted out over the next year. >> you are the classic value player and you've seen cycles like this come and go. are at with the a point where you're starting to develop a laundry list for biotech stocks? >> we're working on the laundry list. a problem -- a remaining problem that we have is there's a whole lot of stocks owned on margin and this can cascade. we've been trying to warn people the last several months. we've solved none of the problems, we've added a couple to it. volkswagen didn't do us any favors a couple days ago, hillary clinton didn't do us any favors a couple days ago. my guess is she'll keep repeating that. but there comes a point where you start putting money back to work as opposed to waiting on it. one of the fears that we have is the amount of money that's on margin as my son says, it doesn't matter if you're bullish

or bearish, if you get a margin call you sell and that still has that potential out there. >> we have a lot of fed speak on tap this week, we have janet yellen, branard, stan fisher speaking on friday. just today charlie evans of the chicago fed said that is there could be more down side risk to a rate hike than he previously thought, maybe middle of 2016 is the right time for a liftoff. do you get the sense that the fed is getting fearful of what's happening on the global stage? >> well, they have certainly said that they are data dependent and a lot of the data coming from outside of the united states has not been good. that coming from inside the united states has been decent if you look at jobs numbers and a bunch of other metrics, but if you're concerned about deflation, you know, we see commodity prices falling, that sort of works its way through the pipeline in terms of lower prices here. we've had lots of volatility coming from china, coming from other countries.

so there is good reason to be cautious at the very least. >> tim, is itten inevitable that we go back to the august 25th lows? this is something we've been talking about for the last hour t seems like everybody is expecting that to happen before they want to get back in or maybe even at the extreme the lows put in last october. >> i think it's good to look at valuation as a catalyst as a whack stop for markets. liquidity conditions are worsening. i think this is about a credit event and i think whether we have one or not, that's where the anxiety is, look at the hyg, that's well through the august 24 lows, a lot of stocks are well through the august 24 lows. technical i think we are in a state where 1740 looks like the next level but i think 1830 is a given. i've said this multiple times, this to me is the 2007 -- 2011 analog, excuse me, 2 r 2011, which means that we got a bit of a rally in september, we are probably not out of this until mid-october and a lot of that has to do with the uncertainty on the currencies and funding

currencies and carry trades which are playing out before our eyes. the dollar is kind of weakness over the last couple days is all about actually unwinding end trades, unwinding euro trades and that's just the beginning. i think you have stob very cautious. >> what, tim, is this credit event that you think we should be looking out for? >> clearly if you look at the energy space and the commodities space these are catalysts of sorts, but even look at vw, you're starting to hear where there is pressure on this company. these are straws and vw isn't necessarily at risk of default, but again, their cost of fund something change. look at the iwm that is price nothing a higher cost of funding, they were dwich when people thought this was a dollar strength growth, global growth issue. if this is a credit event type of environment small caps have more room to mine lower. i think energy will be a catalyst if it happens and glencore is as good a place to start. >> ron, good to see you. we have to go at this point but thanks for joining us today.

>> take care. >> you can get more tim seymour on "fast money" which starts at 5:00 p.m. they will be asking dennis gart man if glencore's massive slump is signaling the bottom in commodities. it's a million dollar question. meantime, we have more on facebook's outage. seema mody has the latest for us. >> facebook dealing with an outage issue where some people are having trouble accessing facebook. according to a facebook spokesperson they are working on restoring facebook services that people had trouble accessing earlier today due to a configuration issue. it's worth noting, though, bill, that the site has been working for many, including some of us in the newsroom, but again the spokesperson at facebook citing a configuration issue. when we have more details we will bring them to you, the stock closing down today by 3.8%. >> thank you, seem machlt. but watch under the circumstances, you don't need to be distracted by things like fsh. we do have more from kelly evans coming up, she is at

international paper's newest plant at canton ohio and she will be joining us. what do you have coming up? >> great to see you and kayla, again. i'm surrounded by paper. in case you miss it had last hour, the ceo of international paper told us he is seeing softness in u.s. volumes recently. why? the strong dollar. sts having an impact. we're going to speak with the ceo of one of international paper's biggest literally customers, wendy's coming up in just a little bit. first just to give you a sense of the scale, 10 million cups a day in in fact ri. i'm seeing names like wendy's, arby's, pan ration there's starbucks and this one might be familiar to new yorkers, the iconic new york coffee cup. each one much these rolls weighs a ton t produces 65 to 80,000 particular labels for the coffee cups that we will all be drinking. you can think of each one of these as a point of demand in the u.s. economy. we will be hearing more coming up shortly about just how strong that demand really s the ceo of

wendy's, emil brolick joining us next. >> i want to see you fit that cnbc cup in the overhead bin on the way back. >> i want to wallpaper my apartment with that. >> what's not to love? >> kelly, we will get more from you later on. also much more of our market selloff coverage still to come including whether this biotech bust could be a buying opportunity. forminger dallas fed president richard fisher back with us, he will tell us how the commodity crush could affect the fed's decision. air watching cnbc first in business worldwide.

my name is chris hughes and i am a certified arborist for pg&e. i oversee the patrolling of trees near power lines and roots near pipes and underground infrastructure. at pg&e wherever we work, we work hard to protect the environment. getting the job done safely so we can keep the lights on for everybody. because i live here i have a deeper connection to the community.

and i want to see the community grow and thrive. every year we work with cities and schools to plant trees in our communities. the environment is there for my kids and future generations. together, we're building a better california. welcome back. the dow down 312 points, we talked about the selloff in kboik, the pressure on drug prices and the one dow component positive today, rather ironically, johnson and johnson. maybe this was the one place to hide in today's selloff. a gain of 37 cents. >> from a dollars perspective it's only adding 2.5 points to the dow. from a percentage perspective it's the only green stock, it is

still barrel adding anything to that index. >> shares of the ibb biotech etf continuing their slide from friday falling another 6% today, the sector is officially in bear market territory and negative for the year. >> joining us to talk about what is causing this selloff michael yee biotech analyst. good to see you. >> good to see you. thank you. >> do we lay this at the feet of hillary clinton with her talk about drug price strategy and calling into question the high prices that are coming out of that sector right now? >> that's a great question. we talked about that last week. i think the second week this week is panic and fear related to a lot of people who are overweight the sector taking exposure down and rotating out of the high growth names like biotech. it looks like there is a long way down to go for some people.

a lot of panic and sphere other than hillary. >> from a pe perspective it's basically trading at the same multiple as the s&p 500. does that mean it's oversold or now it's finally at fair value? >> yeah, so we just put a note out saying if you're looking for technical levels or fundamental levels you look at the four big horseman, a.m. jen -- that's basically the market multiple. whenever biotech trades as a market multiple that's one level. you also have a bunch of names trading near here dcf no pipeline level. names like gilead and bio jen within 5 to 10% of their dcf level. >> i have a question for you. let's say hillary's fantasy plan does actually get through. how much do you think it would actually affect these various companies? i mean, given that a lot of the targets are in d spending and so many of these companies are tiny startups that doenl do one drug

what would actually be the effect if this goes through? >> that's a great question. if you look at what her big proponent is, which is to have medicare negotiate drug pricing, medicare for cancer drugs can be upwards of 30 to 40%. so if they are going to negotiate pricing you assume a 10 or 20% hit to that which would be pressie aggressive. mid single digit, low single digit revenue impact. these stocks are down 20, 30%. far and away past what these types of impacts would be. a lot of that is just uncertainty, people don't want to buy the names, people don't know what's going to happen. so it's a shoot first ask questions later type of impact. they don't think about that right now. >> let me ask you this. there was a lot of hoop law last week with this ceo of turing, the hedge fund guy that raised the price that have one drug by 1500% or something trying to justify the price increases we see, are they justifiable in the aggregate? certainly you are going to have some special situations there,

but is the cry over the rise in drug prices these days justifiable? >> well, i think that's a really important point and we are going gg to emphasize it over and over. you have a couple of select situations where they had a big price increase but i think a lot of people are getting a bad rap for that. gilead got a bad rap but their drug cures hepatitis c. i don't know what the right price is of that but they priced it at the same price as the other drugs. so now we're curing things. if you had a cure for cancer what would be the right price for that? i think there's a couple one off examples that you mentioned that are giving the industry a bad rap and that's certainly not the situation a wros most of these biotechs. >> to have a large cap company like valiant in congress' cross hairs that gives many investors pause. what would seem like relatively price increases went into the spotlight of the house oversight committees they look ridiculous.

>> and, again, so you have examples where now you have a little bit of congress looking at some of this, it's going to cause a lot of uncertainty and fear and they are going to pull out the bad examples, they're going to pull out the bad skpampls and try to apply that to the whole industry when that is not the case for the dbil yads, the bio jens of the world. now we have an innovation system where we're going to try to control pricing. a lot of uncertainty and fear based on add to go that today with the valiant situation and people just don't want to step up right now. >> michael yee, good to see you. interesting conversation there. when we come back kelly's exclusive interview with the ceo of wendy's. we will find out how that company is adapt to go an ever changing taste of consumers out there and competing with fast casual rivals like chipotle and panera. >> and later on we have tell you how donald trump's tax plan compares with former front

runner jeb bush when it comes to taxing the wealthy. "closing bell" will be back in a minute. always obvious.en't sometimes they just drop in. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances.

welcome back to "closing bell." our kelly evans has been wearing many hats today, literally. >> and hair nets, too. >> and figuratively. reporting for us from international paper's headquarters in canton, ohio >> i like that. let's head back there now where she is now joined by one of

their customers. kelly. >> yes, no hair net needed at this part of the factory. emil brolick is presidents and ceo of wendy's which is one of the biggest customers of international paper and he joins me now, emil thank you so much. we're looking at the state of the consumer. what we're desperate for is a read on how strong and weak that is as the rest of the global economy is called into question. what can you tell us about recent trends in terms of how the consumer is doing? >> we're seeing a lot of positive trends out there and certainly the benefit of low gas prices has been very important to the consumer. the restaurant industry is growing at somewhere between a half percent in real terms and 1% in real terms, which is a nice long-term trend for us. we're anticipating a nice continued upswing in the industry overall. >> and you mentioned the low fuel prices. it's i guess reassuring to people that u.s. demand still there. there are different aspects of your business, though, that

could be under a little bit of pressure, there is the minimum wage hikes. >> sure. >> obviously the increase in health regulation a lot of that coming down the pike. how are these costs affecting your business and contributing to the prices ultimately that you are charging consumers as well? >> sure. one of the things when we look at the minimum wage issue, you know, i think it's a little unfortunate there isn't a broader picture that's painted here because there are some important things about our industry that i think people need to be aware of. we as an industry employ 14 million people which happens to be about 10% of the u.s. work force so it's a very significant business out there. the vast majority of businesses that are owned by our franchisees, they are small entrepreneurs and businesspeople -- >> especially you guys during the midst of a transition of full franchisees. >> they are for profit companies. their top line is totally dependent upon the marketplace and competing with other strong players out there.

when their cost becomes impacted by another factor it becomes difficult and they certainly can't pass all that impact on in the form of higher prices >> why not? i have notice that had mcdonald's, jack in the box have increased overall prices, call it 7% over a period of three years. you guys have been a little bit less than that. why do you feel like you can't or is it that you don't want to continue to increase prices a little bit to offset this? >> i think this is a very competitive environment out there and we always can take a little bit of price to offset this, but a large part of it cannot be offset and so i think the individuals that this is intended to help actually end up losing for this because any input cost that comes into our business that has a tendency to be unstable and keep increasing we look for ways to offset that. that could be reduced hours, reduced employment or it could be the use of technology to replace those labor and i think you're going to see that more and more. >> i'm glad you mentioned that because we're here in a factory where automation plays a big role in being able to produce so

much more than they could have in the past n your industry is that kind of change possible? what kind of possibility is there to use technology to handle a lot of the jobs that require just getting the right food packaged and to consumers and all that? >> you start to see this in retailing of course and mobile order, mobile pay is something that i think is going to continue to grow. self ordering kiosk is going to continue to grow. people are going to turn to robotics in restaurants to have some of the repetitive tasks removed from the labor force and the restaurants. >> how far are you from deploying these kinds of technologi technologies? >> you have to look at these things when you're under cost pressures like this, you have to look at these things and we're working very hard, mobile order, mobile pay we have it in three places now. ourself order kiosk is something we are continuing bropden.

millennial consumers we're moving from a service economy to a self-service economy and giving people something that they love to do. they love being in control of it. >> i used to feel that way until the cvs check outline where i'm hitting the screen and you've got to get something to help you out. >> this is wendy's, we have this down. >> speaking of just different aspects you can pull for growth. breakfast still a no go for you guys? >> i don't think so in the foreseeable future. and i look at our business and our average volumes are second only to the big guy, okay? and when you can do that -- >> the big guy being mcdonald's? >> of course. when you can do that without being in that day part and still continue to grow our business and you are probably aware we have set bold goals for having

$2 million annual volumes by 2020 and believe we can get to these average vols lums. when you can do that with two day parts it simplifies your business and allows us to execute to a higher standard. we like the opportunity that we see in fronts of us and our franchisees totally support this perspective. >> before we go people are excited a lot of analysts about you more aggressively increasing your store count in the next couple of years. is that going to continue despite some of these clouds over the economy at the moment? >> definitely. in fact, we have very aggressive programs to take significant costs out of our investment level in our restaurants and when you can improve the attract ichbs of the investment to our

franchisees it's very, very powerful and our franchisees are very dedicated to it. this year we will open 80 new restaurants which is the most we've opened -- this is in the u.s. -- the most we've opened in the past nine years and we are getting to get net positive growth next year and by 2020 we will add 1,000 restaurants. we know exactly where we are going to put those restaurants. impose tifr we're going to get there. >> it's a little humid in here, a frosty would really hit the spot right now, maybe in unwft paper cups of the billions and trillions here behind us. emil, thank you so much for joining me. emil brolick is president and ceo of wendy's. several world leaders but not russian president vladimir putin who was sitting just one seat over from him. mr. obama will meet with putin at the top of the hour. seven more companies could be facing recalls due to defective takata air blag inflaters that's included to letters. mercedes benz, jaguar, suzuki, voluntarily co and spartan motors receiving those letters. a construction vehicle with a crane on top tipped over and the boom damaged a new york police van parked on the street. luckily nobody was in the van and no injuries were reported,

which occurred between broadway and 6th avenue on 30th street. that's going to be a traffic nightmare. gop presidential hopeful ben carson during richard petty's victory junction camp for children with special needs in north carolina. carson shared his admiration for the camp. petty stopped short of endorsing carson's bid for the nomination. you're up to date. that's the news update this hour. back to you guys. and when we come back could today's commodity crush impact the fed's interest rate decision this month? former dallas fed president richard fisher will tell us when he thinks the fed could finally move. then kelly will take us through international paper's new plant to show you how automation is changing the face of corporate america and the labor market. still to come. sure, tv has evolved over the years.

it's gotten squarer. brighter. bigger. it's gotten thinner. even curvier. but what's next? for all binge watchers. movie geeks. sports freaks. x1 from xfinity will change the way you experience tv. welcome back. let's take a look at how we finished the day on wall street. the dow down by just high of 2%. s&p down by about 2.5%, nasdaq down 3%. russell 2000 down close to t bill, for the month of september

a full half of the trading sessions have seen swings of 1% or more. >> and it wouldn't take much of a selloff tomorrow to take us back to those lows that we put in on august 25th by seems to be what everybody is waiting for to happen. >> every other technical level has been blown through except for those august 25th levels. >> meantime, cuban president raul castro speaking before the united nations general assembly in new york city right now. michelle caruso-cabrera has the latest. michelle. >> he just started speaking a few moments ago. this is the first time he speaks at the u.n. general assembly as the leader of cuba. he took over in 2006 from his brother if i had dell who had taken over back in 1959 mplts i fully expect him to say that he wants the u.s. embargo against cuba to be removed to end president obama said he would like the same thing himself earlier today. i would be shocked if he doesn't bring it up. this is the first time we hear from him since its country reestablished diplomatic relations with the united states.

his brother if i had dell addressed the u.n. general assembly four times, the first time in 1960. it was four and a half hours long, that is still the longest u.n. speech in history. after that 1979, 1995 and then 20 2000. if i had dell got sick in 2006 and that's when raul castro took over. this is one of the events that a lot of u.n. watchers were waiting for today, raul castro and what would he say. the other big events were president obama and vladimir putin speaking today. they are going to have a bilateral meeting roughly 5:00 this afternoon. even though the u.s. and europe has tried to isolate vladimir putin the horrific civil war in syria, the fight against isis which has led to the ensuing migrant crisis is forcing europe and the united states to look at vladimir putin as a potential partner in trying to solve that crisis there. guys, back to you. >> michelle caruso-cabrera,

thank you very much. glencore getting crushed today. the stock is down around 50% since the end of august and it has been taking many of the other commodity stocks down with it. >> for more on how the commodity collapse could impact the fed let's bring in richard fisher. richard, it's good to see you today. we've been blessed with your opinions on what the fed should and should not do much of the recent weeks, but i'm wondering how much the addition of glencore and the drop in chinese industrial profit overnight changes the calculus for you. >> well, i don't think it changes it very much, although the commodity markets today were very interesting, the only things that were up were sugar, rice and cotton across the commodity spectrum everything was off and those three commodities a mentioned, they are not little, but had minimal moves on the upside. so i think it's reflecting a correction that has been long in the making. i noticed that our friend, mr.

cramer, now says we are in a bear market, but i don't think this really dissuades the fed from moving. bill dudley the president of the federal reserve bank in new york gave a good speech today. >> right. >> it seemed to me he was backing off of what he said before the september meeting. kept october open. made the point that monetary policy would still be hyper accommodative even if they began the process. so it doesn't appear to me based on the comments that i'm seeing from my former colleagues, even though we have had a significant correction here and as you know the ten year yield ended up at about 210, traded down to 209, 208, you had a little rally in bonds. i think pretty much things are still the same. the real economy in the united states, we saw those second quarter numbers, were much stronger than anybody expected them to be and wage price inflation in the private sector is running at about 4.7%. >> right.

>> so i look to see what these other operators are saying and i pay a lot of attention to president dudley. i think he reflects more the line of the board of governors and it would seem to me that speech indicated they are still considering a move in october or december. >> but as you know, richard, for every bill dudley there is a charles evans the most dovish member of the fed who said he wouldn't support a rate increase until the middle of next year at the earliest. you and i haven't spoken since the last fed meeting. are you surprised they didn't raise? >> yes. >> re they using china and the weak tlns as an excuse not to raise rates right now? >> i think there is some remorse that they didn't move. i noted carefully how stan fisher expressed himself at jackson hole, then they had the meeting and now i have great admiration for charlie evans, we are golf partners and dinner buddies and drinking buddies but i would put more weight on what dudley a saying and also

chairman yellen's speech here, i'm in massachusetts, you can see behind me i'm here in boston her speech at u mass up in a.m. hearst was pretty indicative that the door is open. unless they see something that changes that direction then as dudley said today they're likely to move either in october or december. i was interested this they left the october door much more open than i expected. december has a problem as you know, bill, because it doesn't give people after december 16th or so much time to window dress their books and it could create additional volatility. i think that message is beginning to get through to the new york fed and to the board of governors and the other bank presidents who understand markets. so i was interested that, again, october's door has been opened again. i sense that the reaction in the marketplace to the september decision was not what they expected and i know that they are eager to start liftoff as soon as it is pragmatic for them to do so.

>> right now the united states -- how is that? >> right now the united states is almost like a lonely locomotive, you have a lot of problems in china, you have problems in the eu, brazil, elsewhere. and a couple months ago, i'm trying to remember the exact date, the imf had actually asked that the fed sort of cool its heels because of these concerns elsewhere. not just that they might affect the united states, but that a rate hike could potentially cause more financial turmoil in the rest of the world. i mean, what responsibility does the fed have to consider its impacts on the rest of the world and not just here at home? >> it is the central, central bank of the world, but our responsibility -- i shouldn't say ours anymore -- their responsibility is to the people of the united states and to the united states' economy. just as the u.s. can't be the police person for the world, its federal reserve cannot be the central bank of the world. they take this all into account, but as i and chair yellen and even today in his speech bill

dudley reminded people, our responsibility is to the united states first. you are right, kayla, we are an -- we are an epicenter north america and i would include mexico in that equation, 500 million people in north america and the neft at that countries are the global center of economic growth. this is good for the united states and the commodity price developments we've been seeing are good for the consumers of the united states who drive our economy. so as long as we don't have an implosion or we don't have some major contagion that stems from what's going on in china which i don't foresee, but it's possible, their main concern is their immediate neighbors regionally. only 0.6% of u.s. gdp is dependent on chinese exports or exports to china. >> sure. >> as long as things keep progressing, employment keeps increasing, wage price pressures begin to raise their ugly heads i believe the fed will find it timely to move as everybody has said before year-end. >> all right.

>> we will have more data on friday when we get a jobs number to see what's on tap for the october meeting. richard if sfirver, former dallas fed president we appreciate your time from boston today. >> thank you so much. filmmaker alexander pelosi highlights how silicon valley's boom might be forcing everybody's in san francisco for one to pay the price he is of progress. >> but first donald trump rocking the boat again this morning with his brand-new tax plan. but just how different is it for the middle class and for the wealthy compared to what jeb bush has already put forward? we will have some answers when we return. (vo) rush hour around here starts at 6:30 a.m. - on the nose. but for me, it starts with the opening bell. and the rush i get, lasts way more than an hour. (announcer) at scottrade, we share your passion for trading. that's why we've built powerful technology to alert you to your next opportunity.

because at scottrade, our passion is to power yours.

because at&t and directv are now one! which means you can access your dvr at the dmv. change channels while he changes pants. you don't have to be a couch potato, you can be a train potato! and let them watch all the shows they love, inside the ride that you really kind of hate. introducing the all in one plan. only from directv and at&t.

welcome back. republican presidential front runner donald trump and the one time presumptive nominee jeb bush have now both laid out their tax plans. >> cnbc's robert frank joins us on set with a side-by-side comparison of the two plans. robert, what did you find? >> both of these plans aim to boost growth by lowering taxes for companies and individuals and both candidates highlighting the benefits to the lower and middle classes. trump said today that individuals making less than 25 grand or couples making less than $50,000 will pay a zero tax rate. now, the wealthy he said will lose many of their tax breaks. >> there will be people -- we are 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 -- >> now, despite that populous rhetoric most of the benefits for both plans would likely flow to the top earners. both would cut capital gains to 20%, both eliminate the estate tax which of course applies to the wealthiest two tenths of the state. bush's top tax rate would be 28 and trump's would be 25. now, according to the tax foundation bush's plan would raise the after tax income of the top 1% by 16.4% compared to only 12% for the middle class. now, since trump's plan has lower rates the gains to the top would be even higher. this shouldn't of course be the litmus test for the plan but they're talking a populous game but let's be real about where the dollar benefits would really flow. >> catherine you have written a

column for the "washington post" with the headline merry christmas. >> i don't know if any of you know this two santa claus theory of politics, that the republicans or the santa claus of tax cuts and democrats are the santa claus of spending, they both have beautiful give a ways for taxpayers. >> it's what ross per row used to call free candy. >> trump has cornered the market on both santa clauss, he is giving out tax cuts left and right, mostly to the wealthy, i don't really understand in what version of arithmetic you can come up with an increase for the wealthy based on what the numbers that he has put out and of course he wants to increase spending on lots of other things, give everybody healthcare even though he has den graded obamacare, he wants to build a great wall but he is going to charge that to mexico. it's hard to square what he said with his image of himself -- >> it's all squared with one number which is what they assume for growth which he says will be, what, over 6%.

solves everything. >> magic. >> always does. >> everybody is going to love t that's what we know. >> thanks, guys. >> up next, we head back to canton, ohio, to get a behind the sequence look at international paper's newest facility with machines that can print a mile's worth of paper cups in just three and a half minutes. >> that's how they measure that. >> stay with us. e management can protect capital long term. active management can tap global insights. active management can take calculated risks. active management can seek to outperform. because active investment management isn't reactive. it's active. that's the power of active management.

welcome back. our own kelly evans has been on assignment in ohio ohio checkin international paper's latest printing and packaging a facili facility. >> in this week's edition of kelly's "the spark" taking a look at houtd company is using oughtmation and technology to keep up its growing demand for paper products. watch. >> reporter: in the last 20 to 30 years intimate paper has more than doubled production and in order to keep up with the demand the company also has to keep up with the latest technology. now digital printing is done here for the cut designs instead of analog and then it's sent to the high speed printers. the older printers could do 22 hundred feet of cups a minute and the new ones can do 1,500 feet of cup a minute, about a mile worth of cups every three and a half minutes.

then they have to form the cups, and this is all set up dramatically over the last several years. now they can make 330 cups a minute versus 130 cups earlier. it's done pause they have moved to a one-step process instead of the old two-step wax process and it's still pretty loud, and this is where the cups are formed. in the past employees would have to count, bag and package the cups by hand. today that's all done by machine. the tubes flying around you see in front of me and auto bagging machines. no human hand touches the cups until they arrive in stores, and we have the hairnets to make sure no spare hairs get in there either. these changes have also affect the the kind of workers international paper looks for. it's no longer just about manual labor. it's about the programming skills needed to manage the printers and other equipment that turn these giant rolls of paper into 10 million cups out of this facility a day. >> okay. so kelly joins us right now. so, you're impressed with the gee whiz technology, but what's the impact on jobs and wages

when you're cutting costs using technology? are people still being put to work, and are they making any money? >> reporter: great question, bill. so this factory now employs about 700 people after a $70 million expansion that was just completed in the last couple of weeks, so it's brand new, and i asked that very question to the ceo last hour. he said, you know what? it's difficult enough for us to find people that we go and start to work at high school level to say to them, hey, you don't have to go to college, but if you want a good-paying job, here are some of the voc tech approaches you can make for winked up in our factories. for them getting the skilled work force is important, and it's not always easy. >> how quickly can the company recalibrate its company to meet changes in demands saying look, customers aren't buying more coffee or they are buying more takeout that we put in boxes that international paper produces, how quickly can they

adjust to what the customers need? >> reporter: they can adjust on a dial and there's two different kinds of machines as the technology improves. high speed ones that can turn out 130 cups a minute as opposed to the old ones that do 130, the ones they make them quicker, those machines cost $1 million each that come online. not just the cups, they make the lids and there's a different in the kinds of lids that mcdonald's use instead of the lids at a starbucks. this little notch is what starbucks like. at mcdonald's they like the bigger one and also make popcorn lids, for example, and there's chili cups, different kinds of oatmeal containers. i'm working up a sweat and i'm over here because i've got to cool off with a little drink. it's almost 5:00 over here, bill and kayla. >> great stuff, kel. thanks. safe travels home. >> see you tomorrow. check out much more on

international paper on "the spark" at cnbc.com. silicon valley is not only changing the face of technology, it's changing the face of san francisco. when we come back we'll be joined by alexandra pelosi, nancy pelosi's daughter, always likes to point out about alexandra's new documentary showing how the tech boom has alter the the city. we're back in two minutes. become the only thing you think about. that's where at&t can help. at at&t we monitor our network traffic so we can see things others can't. mitigating risks across your business. leaving you free to focus on what matters most.

(vo) wit runs on optimism.un on? it's what sparks ideas. moves the world forward. invest with those who see the world as unstoppable. who have the curiosity to look beyond the expected and the conviction to be in it for the long term. oppenheimerfunds believes that's the right way to invest... ...in this big, bold, beautiful world.

silicon valley's tech too many has made lots of people rich in the san francisco bay area, but at what price? >> yes. documentary filmmaker alexandra pelosi's latest documentary is "san francisco 2.0" and looks at the impact digital gold rush has had on her hometown and alexandra joins us here at post 9 at new york stock exchange. it has, for one, made the most -- one of the most expensive cities in the country even more expensive, but what's it done culturally? >> well, it's pushing out the middle class, so the question is how do we make a city with affordable housing and make it a place where school teachers and firefighters and policemen can afford to still live? that's the challenge that san francisco is facing today. >> so when you debuted this film, you were debuting it in front of a lot of heavy hitters in the tech industry and in the media industry.

what was the response for people who know about this problem but maybe don't like to watch it in such a fashion? >> i felt at the san francisco premiere like i was in charge of a big group therapy session. everybody got up, like open mike night and everybody got to speak their peace. i think the message i was just trying to communicate to the local community was we all want the -- we're happy that the tech boom is doing, bringing so much revenue to the city of my beloved hometown, san francisco, but we just want to make sure that they are responsible like mark benioff sales force and giving back to the community and making sure that they lead benioff in his pursuit to give back to san francisco. >> cat rin? >> how many political will do you think there is to address the struggles of the middle class given that the middle class and the impoverished, i would add, given that i think of silicon valley as having a very libertarian streak and maybe averse to intervening, using any government mechanisms to intervene. >> it's totally true.

there is the libertarian streak. what i'm trying to ask the questions, i'm not supposed to answer them. i'm just trying to say we need rules. in the new economy, the sharing economy of ground zero of san francisco. aye bnb is going on the ballot. a lot of rules are being decided right now. the whole country, even the whole world is looking to san francisco to decide what are the new rules going to be for capitalism to keep working and be healthy and make everybody rich and happy but also not make cities gated communities where only the wealthy can live? >> very quickly. after you made the film and you visited your hometown again after this whole digital gold rush, good thing, bad thing? >> i would say you can't deny the benefits that it's broumpt i come from a long line of politicians. >> really. >> and my uncle was the mayor of baltimore and when i was telling him about the movie every city in america would die to have these problems. >> first world problems, as we say. >> exactly. >> the film is called "san francisco 2.0" and debuts on hbo

on -- >> tonight, 9:00. >> that's why she's here, alexandra pelosi, always good to see you. >> thank you for having me. >> another good one under your belt. that does it on "closing bell." >> thanks for joining us. >> and look forward to that santa claus column in "washington post." >> check it out. >> look forward to it. >> "fast money" is up right now, melissa lee. >> "fast money" does start right now. live from the nasdaq market side overlooking "new york times" times square. our traders, tim seymour, steve sawgrasso, karen finerman and guy adaem. biotech stocks are pleading and could spell doom for another group of stocks. we'll tell what you they are and what do tim cook and lebron james this in common? one analyst pounding the table and he'll be here to explain what's got him so excited and carter worth is here with a massive call on the market that's sure to have everybody questioning everything about stocks right now and tonight a major selloff on wall street, the dow falling more than 300 point. all three