>> thanks very much, guys. it is 8:00 p.m. at alibaba headquarters. it's 11:00 a.m. on wall street. squawk alley is live. ♪ >> let's start with the markets. the stocks, as you can see, have been lower all morning long. dow down 237. crude hitting the lowest level

of february of 2009. art cashin joins us as well. what is drooeg all this today? >> emerging market currencies, and -- >> right. >> so far the s&p stopped at about 2020, which is where it held wack on november 16th before it started a pretty significant rally. so we'll watch that. if we weaken again, if they violate that area, we could be in a little bit of trouble. we're looking at technicals here, but the markets are very nervous. the buyers are if not on strike, certainly on the sidelines. >> you had drawn 2040 earlier in the week as a line to be

watched. this is decisively on the up side. >> yep. we went right through it, and you're building a series of lower highs and lower lows, so the technical aspect of the market is not very good at all. >> anything the fed is going to do that's going to surprise the market at this point aside from, i guess, not raising. >> the question traders have been asking all week is if the markets keep acting like this going in, what is the fed going to do? they're in a quiet period. they can't communicate with anybody. the fed is going to have an awful decision on its hands. >> it relates to high yield. we're starting to get a picture of what third avenue, what this particular fund owned. people wonder about pockets of excess risk, right?

excessive risk. do you believe it will be limited to pockets? >> hopefully it's an isolated case, but everybody remembers that, and the pain returns when they remember it. >> so holiday season seems to be going fine. we have earnings from adobe last night. they were very positive. adobe, of course, tracks e-commerce spending and seemed bullish on that. >> the fed presses the button. what happens around the world to all the global markets? >> finally, we'll get many china

data tonight, which will set the tone, i'm sure, for the weekend and honest morning. >> monday morning could be very interesting. >> art, thanks. art cashin. as we said wrerl, dow dupont, the other big story today. the companies joining in that merger of equals. worth about $130 billion. david faber talked to the ceos of both of those companies. >> the markets not cooperating perhaps, but the unveiling of this deal, carl, you know, we first reported on it on tuesday night, wednesday morning. wednesday a very good day for both stocks, adding as much as $14 billion in combined market value. not the case today as you see there. perhaps a bit of disappointnt amongst some of the shareholders in terms of rather than wroe. 1.282. also, obviously, a broader down day overall. dow shareholders i have spoken to have also asked the question that $9 billion of the $15 billion in ebida that this company will generate as dow dupont is coming from dow, so

why didn't they, that being dow, get a bigger slice of the overall pie? i asked dow ceo andrew liveris. >> i think they got a terrific deal based on what i said. the market speaks based on equity value. it's not just ebida. it's quality of ebida and predictability of ebida. as we talk about the three business that is will be created, the specialty products group will have a higher multiple. the ag business will have a higher multiple. our multiple is lower as a dow company, and as a group we'll have an uplift in multiple, but it's the multiple verse the ebida and the quality and the predictability of ebida. i'm not telling investors anything they don't know, but when you look at ebida, you have to look at what constitutes the ebida. >> why not just saechl help? why not split down the way you are now in the future? it would have been a lot quicker and conceivably you could have gotten it done in a more expeditious fashion. why was that not preferred? >> this deal, you have to understand is the most

tax-efficient way to put the pieces together properly in no tax. we now create a specialty company that's going to have a nice multiple trading against it. dow puts the right pieces from dupont in to where they belong, and we had the same issue with dupont. a lot of confusion about how do you value all these different pieces. we fix three strategy pieces all at once. then we have the synergy on top of it. then we have our growth plans on top of that. all tax-efficiently, and that would -- that's not ease where i to normally could. >> finally, this idea of who is going to be running these individual units? i mean, you mentioned you're not necessarily going to be out bound. do you know what you like your role to be once, let's acall it, once this closes and the 18 to 24 months is taking place. are you done? >> no. the executive chairman role suspect very clearly spelled out. i've got direction to set up

materials. the peace of that, we hope to get it done as fast as possible. look, i have had a tremendous opportunity to be ceo of the dow company. the vision to get us here has been a board-driven vision, and i'm happy that once we close it deal, execute and put the plan in place to get the deal launched, then we'll make the right decision and there's no need for me to be that person. >> andrew veris will be executive chairman of the combined dow dupont. ed green, as ceo, he referred to there, mr. liveris has been the driving force behind trying to get this deal done. it's not something he really was able to get much traction on when ellen coleman was the ceo of dupont, but with the assention of mr. green taking over for her once she left that office not long ago, it seems that was the first call coming in. let's see if we can put this together. mr. green, of course, as you heard there, much more interested. in fact, he referred earlier in the interview to being interested in the combination

when he was a board member and took over as a board member in february of this year. simply some interesting background there. overall, of course, as they recovery to an agriculture company koreaed here with $19 billion in revenues. material sciences company, largely dow businesses. $51 billion in revenues, and specialty products, another $13 billion in revenues, all of which become their own companies after this deal closes and then another 18 to 24 months pass so they can get those out into the public market. regulatory-wise, it doesn't appear that this is going to be particularly focused on, although you never know. one never knows. we certainly can't say. they don't seem to have enough market power perhaps that the anti-trust regulators will really come down hard on them, carl. the market today, though, saying, well, all right. we'll see. let's see if they can prove it and bring those $3 billion or more in synergy and cost synergy numbers and growth synergy numbers to the fore. back to you. >> certainly a little selling on the news as well in there.

david, thanks so much. david faber. when we come back, jack ma following in the footsteps of jeff bazos. what his big move means for alibaba, and a big executive leaving yahoo. kara swisher will tell us what's going on, and we'll continue to watch this decline in the markets. s&p down to 2,026, and the dow still down 200 points. we're back in just a minute. 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.

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>> the marketed is in in trouble, but we have tech news to get to as well. swrak ma is one of the big stories. alibaba buying the south china morning post. the "new york times" today says trying to polish china's image for a western audience. what do you make of this? >> well, i think they think the coverage of china has been kind of simplistic from the west, and this is a newspaper in somewhat distress, like most of them. the only reason you buy a newspaper is to have influence and impact, and that's what they're going for here. they didn't pay very much money for it, so i think they just want to have an outlet to give better coverage of china. that's the news version. not so nice version is they want impact and influence and want to influence the discussion there. >> this is a hong kong paper

that was already raising eyebrows because its coverage of china. some critics say had softened. jack ma essenticertainly has a interest in not ticking off authorities. is this going to have a broader cultural bakt when it comes to freedom of speech and expression about the chinese government, you think? >> i'm not sure the newspaper is covering itself with glory recently, so it's been an important paper for many, many years, but not for many, many years. i think, you know, the survival of paper is a good thing. obviously it's going to be probably, you know, writing about china ink and the interest for alibaba is the china looks great, and we'll see how they cover it. i don't suspect they'll be doing investigation intuz fraud on alibaba and things like that. at the same time, you know, look, a lot of big companies own big newspapers, and, you know, you could question their motive too. >> does it move the needle

incrementally as to what alibaba may be interested even not just directed toward a western audience, but in a western audience? >> we shoulding they operate in on the new york stock exchange, and every time there's a small thing that happens in china, say, you know, there's a counterfeiting thing, are they -- is the western press covering it correctly is probably a concern of theirs because their stock gets affeed every time something gets covered, so i assume they want a smarter press or a more -- a press that knows the market better to explain things. sometimes that's a good thing, and sometimes that's going to be a bad thing. i don't think it's for entertainment. i don't think they're trying to become a media company in that regard. they're doing that in video. they're doing that in video for sure. >> meantime, on a more serious note, in the wake of the attacks in paris and in california, the fbi director is now calling on tech companies to stop by default end to end encryption. that's a sentiment echoed by presidential candidate lindsey graham this morning on ""squawk box"." take a listen. >> here's my advice to our friends at silicon valley.

if you can't find an agreement with the fbi director soon as to how we, the government, with a court order can find out what's going on with terrorist communications, congress will do this for you. >> kara, we're back to the encryption debate. has it moved although? yeah. no. the companies -- lindsey graham doesn't know how to turn on a couter, so he doesn't understand the complexity of this issue. i think there's definitely major issues at stake here. i think there is -- it's a little bit more complex than it is to just shut off a back door. it affects consumers. it also affects privacy around consumers, and the tech companies have good reason for resisting this on privacy concerns around consumers and protections, and at the same time there are very serious issues. you know, i think that focussing on the tools rather than the terrorists and i get that there is a focus on the tools, but they could use -- there's so many other ways to communicate and stuff, so it's much more complex issues than presidential candidates popping off.

i see why the fbi director is doing it to create pressure, but this is a long and complex discussion, and that has to happen with the government and tech companies and you're not going to see apple or google comment on this at all. >> well, a, why not, and, b, are they going to have some sort of an effort -- third party effort to influence the conversation about this? they've been very, very quiet. haven't even really heard their proxies putting together a coordinated response to why breaking encryption basically -- >> it's not true. >> it's not true? tell me what it is then. i haven't heard the coordinated response. >> that's not true. there was a software group last week or two weeks ago. i was looking into this a couple of weeks ago. they did come out with a response talking about these complicated issues around privacy and consumer protection at the same time. you know, tim cook -- >> what did had he say? just that it's complicated? that's not a response. >> no, that this is -- this impacts -- if you remove the

ability to encrypt things, you open the door to hackers and all kinds of other things. >> yeah, sorry. that doesn't count. we all know that already. we're hearing -- we're hearing -- >> yes, it is a very important concern if you are a tech company. >> that's not a response. we've heard it already. we're hearing this constant drumbeat from the other side. >> i know you wan a response, but they're not going to respond because to do this in public is really -- it's such a complex topic, and i think tim cook, for example, has been incredibly articulate on this subject, whether you agree with him or t is a different issue. he has been out front of this thing talking about not doing it, very firm about it. the government, for their part, is going to be very firm saying this is, you know -- that terrorists are using imessage or other ways to get through, and i just think this is a long-term and important debate that literally lindsey graham has -- he can say what he wants, but i think it's just to score points and scare people. it's not going to -- it's a complicated issue that has lots of parts, and you can't simply just do, like, turn off, close the back door.

it's just not correct from a technological point of view. it creates all kinds of issues if you do it. >> yeah. meanwhile, reuters has a story that turkey has fined twitter relatively small fine, but for what they're saying the platform failing to reduce terrorist communications on the platform. i just wonder if you think that pressure is going to bleed across the atlantic? >> i think it's going to go all over the place. i mean, it's easy -- it's mraming the tools is a good way to do it, and there are some tools being used. i think there have been tons of tools these terrorists have been using for a long, long time, and there's lots of ways to go if they don't -- if areas are closed off. this is a really difficult and important issue, and to, you know -- turkey is -- they can cut that off, and they should respond. these companies should respond. i don't know. it's a -- getting people to stop using twitter, where do you do it? how do you find them? i'm just saying it's much more complex than just a two second debate. >> finally, kara, as you

reported, another yahoo executive, this time it's the svp of advertising products leaving the company. marissa mayer talked to us about attracting and keeping talent earlier in the week. let's listen to that. >> the separation of the alibaba stake is actually incredibly important in temz of attracting talent. one of the things that's happening right now is because so of our value is driven by alibaba, it's hard to correlate some of our business results and business successes to our valuation, and that really does matter to key talent, and so we actually think that we'll be able to get more clarity into the value of our operating business as well as attract better talent because their efforts will be better correlated to our share price.

>>. >> a really top executive there, and there's all kinds of issues why he was leaving, but people like this is, you know, not a great -- not a great sign for yahoo. i don't know if it's -- >> of course, every now and then quality people leave everywhere, but is there any kind of balancing idea that marissa is doing or even her deputies -- doing a really good job recruiting at the same time? >> no. no. i don't think so. i think -- i get that people leave and go, but i was on a radio show with miguel who had a great piec for forbes a couple of weeks ago. i think he had counted 24 major executives leaving. that's a lot. you know, talent is at a premium here in silicon valley. attracting people in, it's harder when there's a massive

exodus going on, and for most of the stories i hear inside yahoo right now is relative chaos in the management ranks, and so the question is can she get it together and for top managers, but if the top managers are leaving, what top managers do you rely on, and this was -- this was not a departure, i suspect, that they wanted to have happen? >> finally, kara, she did say she would not consider leaving. do you take her at her word on that? >> yeah, i do. she's a very strong-minded person. i think she's got a plan that she has told people about, and i talked to lots of her mentors and friends.

>> glad to put this one to bed. >> it never will end, i think. it's a fascinating company on any measure. >> kara swiber joining us from out west. kara, thanks. >> up next, the privacy versus security debate may hav hit a turning point. the latest on what may be changing minds and watching the sell-off in the markets right now. the dow down just even at 200 points. ticking a little lower. s&p 500 down 1.2%. also, we'll bring you europe's close and what it means for the u.s. in just a moment.

steve liesman is back at headquarters. >> thanks very much. our r nbc all america economics survey asking about the issue of terrorism encryption and government monitoring of terrorists is a very interesting result. i want to show you this first graphic here and explain a little bit. we went into the field just

before the san bernardino tragedy. we went back into the field. originally we asked 800 americans. we went back and we re-interviewed 347 to get very different results. flying, more concern there. more concern about visiting big cities. then we asked these two right here about attending big events like concerts, and also going to the shopping mall. not huge and overwhelming, but some increase in concern. what should the government do about it? when it comes to the issue of are you afraid the government won't go far enough or will go

too far in monitoring terrorism, take a look right here. this is july 2013. the height of the revelations from eric snowden. you can see more americans were afraid of the government going too far. more concerned about privacy he here. >> we were the fist to ask about this issue of should tech companies offer or sell that's encrypted devices that the government even can't decode. take a look here. yes, the company should sell it. 53% of americans know it goes too far in protecting criminals and terrorists. just 36%. guys, we don't know how these results would have changed after san bernardino, but these are very large majorities. i will say not a lot of americans were familiar with the issue. we spent time in two separate questions to explain it. in both questions, we got majorities in favor of these

tech companies selling this. i would like to point out, though, that democrats and republicans are actually evenly split on this issue so it's not political yet, guys. >> i'm sure the framing of the question had a lot to do with the results, but that's really interesting stuff, steve. thank you so much. steve liesman. back at hq. stock selling off here. dow down 231. europe has recovered from the absolute lows of the session, but week to date losses, no good. >> session for europe, of course, and it's been a rough week for europe as well. it's an awful lot of red on the screen. this is how europe closes out now for the week. negative territory. all the way around. there you go. greece is doing its own thing with the banks. it's important to understand the magnitude of what is going on in europe.

>> with one of the exchange markets, i thn currency is a one-way bet. cover your ears because no good ever comes of it. i can promise you that. let's get back to the moves on today's market. what's interesting in this down draft is how some of the big banks have come through on the down side. i don't know. i don't have a specific reason, but these are broad-based banks. is this about credit quality? is this about loans or simply because of what's happening more broadly in the market? the south africa plays are certainly lower. that country's president seems of its own val igs to ram the country into some sort of credit crisis. there you see again. the minors and the basic resource stocks have resumed their trajectory down after the short covering that we had earlier in the week. we've got another downgrade on

anglo-american. up one more. it is, of course, the second round of elections regional elections in france this weekend. this is marie lapen who did so well last week had theed in six regional races. the opinion polls suggest she may actually not win one of those regional elections this weekend. partly because it's been no follow-through. partly because the opposition legacy parties have moved against her to restrict candidates. therefore, focussing their opposition in one area. marie lapen suggested that donald trump may have gone too far. here at td ameritrade, they're always working. yup, we're constantly making thinkorswim better.

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to discuss the situations in syria and ukraine. kerry will be in paris on monday to attend the latest talks on the syrian crisis. the paris climate talks have been extended into saturday as more time is needed to reach an accord. climate president fabius telling

french tv he would present a compromise text tomorrow morning. president obama and chinese president xi talking about phone to get a deal done. iraq releasing video reporting to show iraqi forces held by islamic militants in rahm add where i. no date was given on when the video was shot. iraq saying air strikes inflicted heavy losses on isis. north and south korea holding high level talks at a north korean border town. a small step battered by military stand-off in august. no major breakthrough was reached, and the two sides deciding to extend the talks for another day. that's our cnbc news update for this hour. now let's get back to squawk alley. iccheck of the markets. there's a look at the dow 30. a couple of components in the green. >> there's not been much attempt

to rally here. let's take a look at the -- bottom line. simple. 5-1 tee clining on advancing stocks. volume is moderate, bleechbt. not heavy. volatility is elevated. the vix is at a two-month high. let's take a look at the sectors. energy, materials, consumer discretion. all the sick liblgal stocks are the ones that affected. this has been the story all week. the cyclical names. energy materials. discretionary much weaker than the defensive names like utilities and consumer staples. that trend is continuing today. i've been asked a lot about the vix. it's elevated. it's over 20. that's when i start paying attention. it's 22. a lot of people have noted, look, the cash vix, which we quote is 22, and the futures contracts are lower. the december, january, february contracts are actually lower. in the past this has usually indicated at least a short-term bottom because it indicates that the short-term panic going on. i think that what's happening here is that this particular

cash contract represents and encompasses the fed meeting on december 16th, and i think that's why this is elevated because there's market saying short-term concerns around the fed meeting. those other three futures contracts i show you do not incorporate the fed meeting. people have been asking about this, and i think that's why the cash vix is elevated right now. high yield. obviously there's been a lot of discussions here about the third avenue funds, spending redemptions, and i think the important thing here is this fund really looks a little bit more like a distressed debt fund than a high yield fund. 50% of the securities they own not even rated, not even triple c or cc or c. none of that. that looks like a lot of high risk stuff that's in that. obviously, though, it is affecting other high yield funds that obviously don't have as much rescuey stuff.

>> oil is still number one. we do see themes around risk reduction hfd the fed. we mentioned that. cyclicals are notably weaker this week, and finally the credit concerns. you put them all three together, carl, and you've got a weak down market. >> thank you very much, bob. >> meantime, we had a little drama down here on the floor on pbyi. let's get to dominik and see what's going on. >> you guys saw that kind of crowd that was gathering there for puma biotech. the shares are down by 20%. sheer sinking after disappointing data for one of its experimental breast cancer drugs. the data was presented at the biggest cancer conference of the year, and back in june similar data also disappointed as well. if you take a look at this, remember, multiple halts today, john. one for news and multiple ones for volatility to the down side.

>> thank you, dom. >> fresh off of its ipo pop yesterday, shares of software maker atlassian hanging despite a sell-off in the broader markets. could this be a sign of a brighter ipo market, or at least some unicorns next year? denmark partner of connectivity capital partners joins us now here at post nine. >> i think the advice people ask for tends to be consistent. they tend to ask for help raising capital. they tend to ask for help in staffing. they tend for help through scaling. when you have seen a shift is more people are thinking about strategies for how much do i raise, how long should i think i'm going to need to keep my current round open or more importantly, how much time should i plan for between

rounds? >> i think that's half right. i think they're more common. i don't know if they've lost the stigma. i think that people are definitely much more open to the fact that that's a possibility, but no one is thinking i want to have a high valuation now so i can get a down round later. that's still something that is relatively frowned upon from a branding exercise. >> is there an eagerness to ipo in this environment? i mean, atlassian was just yesterday, and it was unique in that it went so well, or are people just trying to hunker down for as long as possible so they don't feel forced to before they're ready? >> it's interesting because you have a couple of factors at play. i think the two have a number of people who are thinking that the public markets are a lot more

difficult to manage and whether it's from a sarbanes oxley regulatory framework, but the work required to be public is something that a lot of entrepreneurs do not don't want to deal with from a headache perspective. the sort of activist shareholder potential hall enkz in the way that you have to manage investor relations also something that they don't seem to be excited about. on the flip side, you have investors that are saying, well, if you don't think about going public, you may miss your window. you know, meris at google venture has made comments to that affect earlier. sales force made comments to that earlier. there's a dynamic tension between people saying, hey, look, you need to hit the window, and then entrepreneurs saying if i can get the money somewhere else, i actually prefer not to deal. >> have you had anyone -- heard of anyone say we did a public exit, and we wish we never had done it? >> you hear that a lot, actually.

>> it's -- there's a number of instances in life where you think you know something going in, and then you get there, and, oh, wow, this is actually a little more difficult than i expected. >> getting deep on me now. >> we're wking together here. >> is the horn coming off the unicorn. comments were made lately saying i'm done with the unicorns and people reaching the valuations of a billion plus. they're gaming the system. are start-ups less eager to hit that point when they're talking about funding, or is that still something -- a ring that people are reaching for? >> i think that there's a couple of issues there. one is the goal of the entrepreneur, which is to get to the billion dollar valuation. that still has all kinds of positive implications. and it's a branding exercise. people want to be a part of that club. even at, you know, 90 some odd

u.s. los to 150, you know, global unicorns, that's a very small group, and to be a member of that club still has a pretty significant stat where yous. the second one is thinking about where the implications are. >> the late stage valuations on the unicorns and i'm going to give you a billion dollars, and i'm going to build in my return based on the exit. >> yes. some of these are horses with carrots strapped to their heads.

perhaps -- >> thanks for shedding light on that from your valuable perspective. >> thanks for having me here, guys. >> great to have. stocks continue to sell off for the dow down more than 1%. 1.25%, actually. what are you watching today? >> i'm watching the markets. i'm watching as markets around the globe recalibrate to what may be a landscape much different on the rate side as we enter 2016. most of all, i'm actually going to show a few silver linings to the notion of rate normalization. all after the break.

>> coming up on the halftime report. experts all over the health selloff. continued carnage, to more sfeerz over china and the emerging markets. here's heating up with high yield and one mutual fund. blocking withdrawals from the first time since the financial crisis that that's happened. better late than never. another downgrade for go pro. carl, maybe that's what the analyst was thinking. raised eyebrows today. we will certainly discuss in about 13 minutes. >> you know, hey, stocks come down. 70% this year. >> chuckles this morning, so the. thanks. we'll see you soon. receipts go to the cme group. rick santelli and the santelli exchange. >> hi, carl. listen, for quite a number of years i have not been a believer in the current medicine that's been dished out by central bankers to remedy what they see

are the problems with regard to local and global economies, but i do see a silver lining, so let's start at the beginning, and the best way to start is one of my sources e-mailed me something today that i would like to read for you, the viewers and listeners, because i found it so fascinating and spot on. i still find it amazing that despite the extraordinary period of low growth and prices in japan that we all observe for years fast forward now the u.s., europe, and china and the parallel time frame of ultra rates that pretty much no one seems to want to consider that the latter is a causative finish nonnon. that's wordy, but what he is saying is accurate. we all notice japan's lost decade and lost decade and a half and lost two decades. now pretty much the whole globe is in somewhat the same boat. they're not getting enough pricing pressure, and that's for a whole other discussion, and certainly not getting enough

growth. whcan't anybody other than a select few seem to look at all of these ultra low rates and all the largest economies and look at what the output of that sausage factory is and find causation? i don't understand it. yet, in a way i do. okay? now, when i bring this up in discussions with traders, there's always a segment that would say something like this. this is the way the central banks and particularly u.s. central banks have done it for decades and had some success. i don't disagree. a little bit of salt on my meat makes it taste delicious. if i put a half a pound on it, it's not good for me. i think the same can be true under normal economic conditions that tweaking these things can result in the wrout come that is they like. i think at the point we're in now where especially all the economy is in the same boat that i don't agree. this is what actually gives me

hope. i think normalization of rates and that recalibration will be painful, but there's pain no matter how you slice it. either spread it out over decades or get it over now, even though it's been close to a decade. in the end rising rates are going to cause things to be much better, and the in the u.s. way better. john fort, back to you. >> all right. we'll see what we get. thank you, rick. meantime, a major setback for draft kings and fan duel in new york. eric joins us with that story. eric, what do you know? >> how are you doing, john? we just talked about it on your show a few moments ago about how unikorns, you know, they're not doing as well as we would like to think. two of these unicorn companies have been valued at over $1 billion in the last couple of months. they had a big setback today because the judge in the new york state, judge mendez, said they can't operate in the state anymore, and that's a temporary ruling while they have their larger trial to figure out. whether these things are stoelgtsly illegal and will they go forever? to the judge's point, he thinks

they're going to lose that case. that's why it's a big setback because if said you guys can temporarily keep going while the trial happens, that will be his way of saying i think you're going to win the case, and everything is okay. it's a big deal. some of the private markets have actually said that these two companies have dropped about 50%. companies that were about $1.25 billion before, now trading at $600 million. that's a big problem because new york state has a 10% of their entry fee on a week to week basis, those entry fees are down about 25% from two months ago when all this controversy started, and because new york was a key state when it comes to setting law precedent. if this goes away, what it means for the rest of the 49 states. john. >> yeah. i know you'll continue to track this and bring us the latest. eric, thanks so much. up next, stocks continue to sell off, but adobe, one bright spot to dave's market. earnings yesterday cheered the street. what the ceo of adobe told me is coming up after this break.

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adobe reporting a fourth quarter revenue and earnings beat after the bell yesterday, and raising midterm targets and digital market. i spoke with ceo -- where heed. here's what he had to say about getting more engagement and revenue from cloud customers. >> very pleased about what we have seen in fiscal 15. we clearly expect that to accelerate in fiscal 16.

when you look at the targets that we gave and reiterated, we expect to add, again, another $1 billion of annualized revenue for 16. it clearly reflects the momentum and going back to max, the large opportunity that we think is still ahead of us. sfwro we feel good about the set of solution spz products that we have. you know, the opportunities for adobe are greater than ever before, and the -- in terms of what we can deliver to our customers is greater than ever before. we remain focused on the stuff that delivering right now to customers, and continuously look for expansion opportunities. >> he managed to tuck in some of the things that they've bought and get subscribers to pay a little bet more for these added

values. stuff like adobe stock. that was the first one he said was on target, what they expected for the we're. >> all the earnings calls with companies in these transitions. half of it is explaining how the revenue will be recognizeded down the road. >> go pro joining the list of losers after the downgrade at citi. a couple more silver linings. we're going to look hard for them, but they're out there. when we come back.

>> go pro shares falling today after the company was downgraded over to neutral at citi, citing softening demand for their products. shares were down a lot earlier today before coming closer to the flat line. the stock recently surged, as you know, following a report that the action camera maker could be bought by apple, maybe one day, but citi states that acquisition is actually unlikely. even with future product launches of karma and they fear consumers may trade down to newly discounted go pro cameras. a reversal for city. one of the catalysts is seeing woodman on qvc, which is not a

new phenomenon at all wrfsh. >> it's not. this discounting that's happening given the inkren sorry issues that they talk about in the last call was concerned that the picture is even less rosy than the call suggested that it wasn't just a matter of getting the pricing on the session down $100 because they've since dropped it another 100. you essential want to offer some deals during the holiday season, but you sort of -- if you are a go pro with those margins, you want to do it in a more apple-like way. you won't see apple dropping $100 on anything this holiday season. >> absolutely. it's even in a deflationary electronics environment, that's extreme. week to date we've been looking at the winners and losers. keurig green mountain is still by far the biggest winner on the nasdaq 100 for the entire week. up 73%. that deal, john, given everything weave been through this week feels like a lifetime ago. >> it does. it feels like it was a couple of weeks ago. a little shot of expresso there in the stock price for sure. fit bit not doing so well. down more than 10%. maybe somebody wilstart a

rumor about them too. >> we will see. we've got a lot to get through tonight. chooun will have industrial production and retail sales after the close. you'll be reading about that during the weekend, and, of course, a couple of trading sessions now from a fed meeting which happens next tuesday-wednesday. have a good weekend. let's get to whop ner and the half. back at hq. >> let's meet our starting line-up for today. jim leventhal along are swrosh brown and we begin today with the markets. several developing stories at this hour. the selloff in stocks, which you see there. drag lower by more carnage for crude oil. china fears emerging once again. we're also learning that the mutual funds since the depths of the financial crisis to stop investors froo withdrawing their money. that has a lot of people talking today. we'll get to that in just a moment. we do kick things off