>> good morning. 8:00 a.m. in burbank, california. 11:00 a.m. on wall street, and "squawk alley" is live.

♪ >> happy friday. welcome to "squawk alley." kayla, myself at post nine. john is off today. also joining us, cara swisher at re/code. good morning, kara. >> the ceo of blackberry, john chen will join us. first, a bit of a friday selloff to accompany the thursday selloff. the worst two days for the dow since the beginning of september. bob pasani is on the floor. bob. >> this is a slightly different feel to it than this week. remember, we have been slaves to the oil market. it's been oil that's been a mover of the stock market this week. this is a little bit different today. take a look at the s&p 500. we started on the weak side, and basically just drifted lower all

throughout the day. remember this is an expiration date. the volume is heavier than normal. >> in fact, that is not bringing down the market. what's interesting here is financials are weak. remember something. if the expectations are for lower rate -- less number of rate hikes, less chance for yield curves staep steepening. financials might have a tougher time. they have run up a little bit ahead of the fed meeting. as you can see, regions, goldman, and citi are all to the down side. the most beaten up energy names today, they're not selling off. your chesapeakes and your range resources, your hess and apaches and southwest energy, look, they're all up today. it's an interesting quasi-rotation going on. i want to show you consumer staples. this is a group that's generally

been a winner for the year. you can see they're down more than the market. your big names. your color objections and colgate. what it looks like to me is a little bit of year-end rotation going on. you sell some of the winners in consumer staples, and you buy some of the big losers that are out there in energy. you sell financials because the rate increase and expectations are a little bit lower here. now, again, we've got an expiration today. we've gotten oil expiration on monday. all of that is playing in. it's very difficult to untangle those particular threads. it does look like a little bit of rotation going on today. finally oshgts volatility, we're up a little bit, but remember, the vix has been moving down really all week. you see 26, 27 on monday and tuesday. the market stabilized middle of the week, that started moving down. up about 3% today. carl, back to you. >> all right, bob. don't go too far. bob pasani joining us on the floor. kara swisher, let's kick it off

with disney. the force has now awakened. fans braving long lines to see the latest installment of "star wars." the movie could rake in $180 million to $220 million in the u.s. and canada, but btig's rich greenfield just downgraded disney to a sell. shares down about 3%. he joined us a few moments ago. >> it's squarely because of espn and the cable network division. everyone is excited about "star wars." look, we believe "star wars" will do $2.6 billion in global box office. we're not taking a negative view to "star wars." this is all about cable networks that's 45% of disney's operating income. >> i would like to look at your broader take on the call. it's essentially saying going direct to consumer is a lot less sticky than subscribing to a cable service and it's going to be easy to stick around for the football season and then leave. >> yeah. i think he is right. i think that's the big problem that either faces at disney is the issues around espn. it's been such a juggernaut for

us in terms of profits and the stock, and now, you know, you're seeing a lot of weakness there. he addressed it himself on the stage when i was interviewing him at the "vanity fair" conference. they're fully aware of the changes going on. "star wars" is terrific, but there are lots of parts of this business, and unfortunately, espn is an important part. >> do you think, kara, that 2016 is the year where that all comes to bare, a year where disney is benefitting from the tale of star wars which for each $100 million it gets at the box office, it's expected to lend about 2 cents per share to its earnings next year. >> yeah. no, "star wars" is critically important. there's -- there's more coming, and they're opening the shanghai park is opening up next year. they have a lot of exciting thin

things. >> it's really a tough business in the cable business. >> rich's point on going over the top. he says netflix is able to flood the zone with new content all year long. he says that's harder to do in something as niche as sports. is that true? >> i don't know. i would say never until somebody has done it. nobody thought netflix would be this successful, and not just netflix but amazon. i spent hours the other night watching the new season of transparent on amazon. i really love it. i spent all my time there. i was not watching abc, and i did sometimes watch abc. so it's just a question of, you know, again, the secular changes in how people behave, and so they've got to be very creative in how to figure out how to reach audiences and also take their sports content and do the

same. >> rick seems to say, too, in the company paying for individual sports rights, they not only overpaid, but they acquired simply too many. what is block anding tackling against your competitors and at what point do you think they went too far if, in fact, that is the case? >> well, i think everybody overpays for these sports rights. the league has been benefitting enormously from the interest in this. how can they monotize it. it's just -- they've got to start trying these kind of things in order to see what consumers are buying in the over the top market around sports. obviously, sports it an area that is not going away. if they do really well eventually everyone will say they didn't overpay. right now i just think it's a more difficult environment to try to eek profits out of. >> yeah. we'll watch disney closely through the session. in the meantime, there's news on apple pay. as you know, heading to china

early next year. the company pashing with union pay and 15 chinese banks to compete with alibaba's alipay. they say they're creating their own mobile wallet as wal-mart has done something similar. it's getting hard sxir harder to catch up with all of this. >> yeah. no, a lot of them. also, samsung pay is also trying to get in there very soon too. i think they're all trying to get in by february or a time frame with the big buying around chinese new year's, but, you know, this is an important market for apple to move apple pay into. it's got to move all its prkts products into, and it's been very successful, and alipay sort of runs the show there along with we chat. it wants to be part of this market where people are buying, and i think it's a must win for apple. or at least a must get into the market in a very deep way. they've done very well there so far, and this is just another piece. an important piece. a lot of chinese consumers do use their mobile phones to buy things. much more so than here. >> one of the reasons, kara,

that alipay started p was not only did they have a way to transact on-line, but they also didn't have an attractive vehicle to store their deposits, to invest their money, and ann financial has been able to give them higher interest rates than any of the chinese state-owned banks. i wonder if you think apple's partnerships are enough to stand up against what alipay and what and financial has been able to build as a full pay financial system. >> well, people have behavior, and behaviors change. if they don't do it, what would you say if they didn't get in there with apple pay? they have to make a serious attempt to -- you know, the chinese consumers are very willing to use these systems, and for various reasons, including utility. the question is who is going to be the dominant player? they don't have to be the number one player, but they certainly have to be a significant player. especially with their phones. it helps sell the phone. it's all part of the same package. it's why samsung has to be in here and why -- there's going to

be a lot of competitors in this payment area, including, i guess, target and wal-mart which have not done as well as the others. you know, it's a formidable rival, but they can't not be in china with apple pay. it's a must have. >> what do you make of the target? is that about loyalty or something else? >> you know, again, everybody wants to control the payment. there's a lot of information that goes with that and shopping behavior and the ability to control payments. it's very important. i mean, these phones are now in a way -- i just bought a hover board for my kid on the phone, and i didn't go near anything else. i didn't go near a store. it's just the way people are behaving, and you have to control the payment, and it's part of the retail process now. payment on the phone is critical. >> absolutely. by the way, tim cook on "60 minutes" with charlie rose on sunday. it will be interesting to see that. finally, kara, there's a couple of other reports on yahoo today. have you donnie work on that? >> uh-huh.

yes. actually, i was just finishing up the story. you know, it's all around the proxy fight, which is coming next. everyone sort of given marissa mayer a couple of weeks off for the holiday. she just had children, twins. i think what is looming by the beginning of the your sometime in january are these proximate where i fights. i don't know how yahoo can avoid them at this point. the people who are interested in waging these things are very determined. they thought it was half measures what happened just a few -- i guess a week ago with shopping the spinoff, but then deciding not to sell the core. i think they want to push very hard for a sale, and, you know, some of the reports say that there's all these circling. they were slowed down by the way yahoo announces. saying we're not sfor sale. we're happy to entertain offers, but we're not going to be proactive about it. definitely closed down buyers by verizon and others. they're going to push for a sale, and it's a pretty tough road that they have in 2016.

>> i think that's true. is there any acceleration in the performance of the core business that could help them make their case? >> no. no. i think it's going to be a very tough order. i don't know -- i mean, that's going to all drop at once. there's going to be a terrible quarter in january announced, and there's going to be a proxy fight. there's a lot more people leaving. very significant executives leaving. you know, it's just going to continue the drumbeat of what should be done. who can turn around this business and whether it should be turned around by marissa mayer or not. there's going to be absolutely -- i would be surprised if there wasn't a proxy fight, and they have a very good chance of winning or at least grabbing some seats. if they had given starboard a seat maybe earlier this year, that might have been enough to assuage them, but i don't think they are now. >> you look so cozy in that sweater and scarf. >> i'm not going to see you for weeks, and i'm going skiing, and i want you to remember me like this. >> enjoy, kara. see you later on. >> thank you.

i'm trying to drive mary duffy crazy too. >> she will love the on air shout-out. our wardrobe chief. >> she's screaming right now silently inside her head. you know? >> kara swisher out west. thank you. blackberry shares up 11% after the company reported earnings. john chen will join us after the break. and the force was with disney last night. thousands stayed up late to watch the latest installment of "star wars." we'll get the latest numbers from disney's back with regard and the impact on some theater stocks. also coming up, the swatch group entering the smartphone business. as we go to break, take a look at the dow. again, the worst two days in a row since the beginning of september. we're back in a moment. being a keen observer of the world has gotten you far, 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.

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welcome back on "squawk alley." i'm meg terrell. we have breaking news for you about martin shkreli. he was arrested at his home in manhattan yesterday on charges of fraud. dow jones is reporting that turing pharmaceutical -- the good news i have been hearing this morning as well, we have heard he is under tremendous pressure from his investors to resign. dow jones citing sources that they are close to replacing martin shkreli as ceo of turing. more news when we get it. back to you. >> thanks so much, meg terrell,

following a story that is developing very quickly. blackberry is reporting third quarter earnings and higher revenue than expected too. will the companies move away from hardware to focus on software and services? how much will that be the key to securing the future? john chen, the ceo of blackberry, and he joins us now. john, it's always great to talk to you after earnings. thanks so much for joining us. >> thank you. thank you for having me. >> the street likes what it saw this quarter. certainly a dramatic departure from the surprise in the previous water. $162 million in software revenue, and the majority of that is recurring revenue. can you keep up this trend? >> well, one quarter at a time. yes, i think that the direction of our software business are pretty good.

>> 71% today is recurring. our goal for next year will be over 80%. by the way, i like to correct something earlier where you said that we're moving away from the hardware business. we just launch a brand new android -- secure android phone, and it's been doing pretty well. we're not really moving away from it, but we really want to build up our software business. >> i know that you have made some comments about shifting the focus of the company to primarily software, although you did launch it earlier this month. we did, john, see the number of devices that the software is operating on, it fell in the quarter, but you did see the average selling price rise. what is the hardware strategy right now, and how are you going to use that to make a profit next year? >> that's a great question. you know, when i came in a couple of years ago, we're losing money on our devices, and the volume was quite high then. we need to really get, you know,

our device business to be profitable, and that's what i have been working on. once we have a good strategy on the product, which we believe we do now, we're going to focus a lot on privacy and security. then we're going to move into a lot more distribution channel, get the volume back, and then we're going to start making money. we're in that transition from the hardware. you know, we make progress, and we'll continue to make progress, and soon we're going to be breaking even and making money there. you're right. on the software side, i think the software -- the assets of blackberry in software is huge. we have about 44,000 patents that are very active, very relevant, and so we're going to take advantage of that, and generally more momentum there. software is going to be a big business for us. >> john, you have written in the past that blackberry is non for their commitment to privacy, but you said our privacy commitment does not extend to criminals.

how does the recent debate over encryption -- how do you see it buffering the business model over time? >> that's a good question. thank you for pointing that out. >> now you make a statement, you know, it gets a little carried away in that statement. it is a true statement. i think beyond business all of us have a responsibility to make our world better, to be more peaceful, and to be more safe. you know, we have a strategy called illegal assets. if a country serve us a subpoena that needed track certain activities, then we will do so, but i have to make a point. we don't ever share content because we don't keep the content. we only share the data surrounding the content, meaning like the locations and, you know, who is talking to whom and -- but, again, this needs to come from the highest level of government. we need to have a court order, a subpoena for it, and then we'll

start responding then. to me it's just, you know -- you know, just being a responsible citizen, i guess, that's what i'm thinking about. every day, you know, good people. you have nothing to fear about your privacy with us. >> what should we expect, john, to see from blackberry next year. you said recently as recently as this morning that you guys are going to launch software for self-driving cars next year. there have been talks about you guys moving more into the android system, and if you don't make a profit potentially getting out of hardware. how will all of that play out over the next year? >> okay. my statement this morning regarding demonstrating the iot and car software, auto software are related to some of the announcements that will come up at the ces, which is about a couple of weeks from today. we're preparing to launch that. we already launched partners who like to use our software in the

auto driven car. we will be a provider of technology component to those efforts. >> it has been early on. we acknowledged november 6th it's been well received, and we

talked about software lsh already. >> john chen, pretty great quarter. hopefully we'll get to talk to you as well. >> the dow down 205. s&p down almost 18. bowing and disney and goldman among the worst dow components. across the atlantic, they're about to wrap you their market week. we'll get to you in just under seven minutes. don't go away.

as the selloff continues here in the u.s., looks much the same across the pond. simon hobbs is here to walk us through. >> european equities, of course. the down draft from yesterday in addition to the selling today. they're actually disproportionately worse than what you have in this country. telecom companies notably -- actually, many of the miners from the commodity stocks are bounced today. just bear in mind whether to leave this now for the month of

december, which, of course, as you come to the end of the year, becomes defining to the year abroad. massive underperformance from european equities. ecb disappointment. fed, as can you see. down 6% for december. although for the year-to-date, european stocks are still positive. it's this market, of course, that on this move here has now turned negative. in brussels the e.u. leaders summit u.k. prime minister david cameron has failed in his attempt to get microns ban from claiming u.k. benefits for four years. the rest say that would be discriminatory. he still says it's a way to the deal that might allow the temporary suspension of benefits anywhere in the union. if public services are overwhelmed. this is an attempt to stock the u.k. populous from believing the european union and the referendum that he is promising.

>> then other coalitions being formed or a coalition being formed that means the spanish shouldn't come under too much pressure, which is kind of a main point here. the whered that anti-austerity politicians could still win. that's very important to keep in the wrurp even union together. back to you. >> good weekend, simon. simon hobbs. the wait is finally over. star wars, the force awakens hits theaters as you know, but the stock feeling some pain today. could star wars become the biggest box office hit ever. the ceo of movie tickets coming up after the break. t's all about understanding patterns like the mail guy at 3:12 every day or jerry, getting dumped every third tuesday. this happens every third tuesday. we have pattern recognition technology on any chart, plus over 300 customizable studies to help you anticipate potential price movement.

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tomorrow. and every day for as long as my doctor tells me. don't miss a day of brilinta. good morning. i'm sue herrera. here is your cnbc news update this hour. ukraine's prime minister says his country will not repay a $3 billion debt owed to russia after moscow's refusal to accept repayment terms. that means ukraine is planning to default on its debt. >> russia's defense ministry inviting the international media to the presentation of the black box. recreated from a crash site of the russian bomber downed by turkish fighter jets last month. russia says it wants to be absolutely open in its investigation and invited international experts to take part. the fda proposing a ban on the use of tanning beds for anyone under the age of 18.

it's part of an ongoing effort to reduce skin cancer caused by the devices. the proposal would also require tanning bed users to sign consent forms acknowledging the cancer risk. pope francis has signed off on the miracle needed to make mother theresa a saint. no date has yet been set for the canonization, but the italian media speculates it will take place september 5th. that would be the 19th anniversary of mother theresa's death. that is your cnbc news wrupt this hour. carl, back down to you where you. >> all right. sue, thank you very much. as you probably know by now, the wait is over. star wars, the force awakens, is in theaters all around the world. we're expecting some official ticket sales figures from disney momentari

momentarily. >> which markets does it need to clearly outperform? is this about new york, north america overcome the difference in china. what part of the world would you be looking at? >> we tend to focus domestically some of the earlier kiters from overseas are going in positively. >> the verge.com did a poll about whether people were going to see it this weekend, had no interest in seeing it, or would see it eventually, and one of the largest shares of respondents said they would see it eventually.

>> people will continue to flock to the theaters this weekend. >> i love the breakdown of age of the -- those purchasing tickets. 19 and under, only 3%. the lion's share, 40 to 49, which is really that window if you grew up with the franchise beginning back in 1977. >> yeah, absolutely. you're seeing a perfect mix of an entirely new fan base coupled with fans who right back following the franchise for nearly 40 years. it's a perfect demographic and just has that vast ability to attract new audiences. >> for people who haven't bought tickets yet, is this too late for people to be able to see it this weekend? what's the market like?

>> absolutely not. the theaters have actually done a great job of keeping up with demand, and we still have tickets available, so i would say absolutely people can reach out to movie tickets.com sflo our 94% of our ticket sales have been for star wars. >> 94%? >> 94%. counter programming is strong. i think that studios and theaters always want something at the theater that will attract different odd wrenss, but this is a different type of film.

this is just a global phenomenon, and i would say we can expect to continue throughout the weekend with a vast majority of sales being for star wars. >> joel, appreciate it very much. >> thank you. thank you for having me. >> elsewhere in the market, gold is up about 1.5% today. hovering just above that $1,000 per ounce mark. the fed's return to rising rates should push gold lower, but they're actually a little more to this story this time around deirdre is at the new york stock exchange with a look at that. welcome, deirdre. >> it's nice to be here in person. >> you look at how assets have performed during other rising rate cycles to sort through some of the noise and knee jerk market reaction that is we've seen, and we found that some of the most conventional thinking really just hasn't held up historically.

that is the case when it comes to gold. rising rates are back for gold because it doesn't pay interest, and it costs money to store. if you believe the dollar strength will continue, that is another knock against the precious metal. history suggests that it is not that straight farther. take a look. >>. >> positive one year after first rate hike, and returned about half a percent on average where, fwet this, the dollar index during that time is also very inconsistent. guys, it's lost more than 4% on average, which is interesting. we consider how crowded that trade is. one year after the first rate hikes in 1999 and 2004 it gained eight and 7.2% respectively, and select miners surged as well.

careful when the onvery longsal wisdom. things like oil, equities as well. history tells us that these trades have not always worked out. with gold as it is currently sitting near the six-year lows, even though it's popped a little in today's session, there could be opportunity there. if you are willing to go a little contrarian. >> all right, deirdre. thank you so much. it's going to be interesting to see how investors find what trade they select now that we're in a new era. >> absolutely. you got to look at some of the history too. at least see what has happened in the past to think, okay, some of the most crowded trades will not turn out this time around. >> deirdre, thank you. >> meanwhile, we want to show you shares of jp morgan because we are getting some news coming out of washington. a settlement 267 million dollars with the s.e. krmplts. the bank will also pay $40 million to the commodity futures trigd commission. this is over asset management disclosures. there were complaints that potentially the bank's asset management division was steering some mutual fund customers into their own products that were

under performing versus better performing but nonproprietary products. the s.e.c.'s enforcement division saying firms have an obligation to confirm all conflicts so a client can fairly judge the investment advice they are receiving. this has been an outstanding issue for jp morgan. something they disclosed in all of their quarterly filings. it is a variable now that the company doesn't have to worry that shares are down 1.5% with the broader market, carl. it's certainly interesting. these banks try to build out their asset management. assets under management and their customer base. they want to sell their own products. they need to tell customers exactly what they're buying. >> that's often complicated. jp morgan, of course, one of the many dow components. >> some of the issues in china. you know, i said many, many years ago that stimulus is

funni fungable. the recalibration may prove bmpy, and we're going to talk about that after the break.

>> we talk to rich, ranked number six on barron's list of this company's top 100 financial advisors. where does he see the market heading in 2016?

plus, one analyst says forget the bank. neck we're is the year of the bagel. we'll explain. disney downgraded sell by one of the most respected media analysts on the street. it is our call of the day. carl, i heard that interview between you guys, and ruch greenfield. we'll talk about it with our folks on the desk and see what they think. >> definitely made waves, he did. thank you very much, scott. let's get over to the cme group and get the santelli exchange. hey, rick. >> good morning, carl. you know, it was very interesting to have john claude, former erb president on today and basically what i was trying to probe is the notion of the recalibration we're going through is based on a divergent policy, in part, of our central bank. if you consider that there was a time where all the central bank policies were all in the same lane. now there's a bit of a -- i personally thought recalibrating would be demonstrated. the transmission of how it's

doing and the aftermath would be in foreign exchange, and indeed, it's correct. i was wrong about the dollar. even though we had some strength yesterday, if you look at the. >> japan and china have a huge trading relationship. the recalibration of what's going on with the dollar yuan, even though it's given way to a basket of valuations for the yuan currency with other currencies, it's had a long string. close to ten sessions in a row of losing ground on the dollar. how do we put all this together? well, i think the fact that you had a failed run-up yesterday on the dollar index is very

enlightening because investors, they control capital. central banks could morph the landscape, but ultimately maybe that's why the federal reserve waited to normalize. waited a long time to normalize because they wanted the market to be fully -- where they were going. investors are now questioning whether it was the ecb and mahero draghi having to walk back some of the comments that he made, or whether it's the bank of japan, that really didn't tweak qe. they rearranged talgts bit. they didn't increase it, decrease it, span the maturities. in the end the confidence that investors have or don't have is now showing up. the foreign exchange markets are interesting.

>> in the asset management division in the proprietary jp morgan products that were underperforming without properly disclosing that to the customers. here's the statement that we just received from the bank. the bank saying "we've always strived for full transparency and client communication and in the last two years have further enhanced our disclosures in support of that goal. the disclosure weakness is cited in the settlements and were not intentional, and we regret them. we remain confident in our investment processes, and are proud of the way we manage money. this issue started as early as 2008 in some cases, and went

until earlier this year. certainly an issue the bank has been dealing with, but $267 million -- in more breaking news. julia borstein has some of the updated numbers from disney and star wars. julia. >> that's right, kale wra. we've got the numbers from disney on the opening night performance of star wars. the force awakens. smashing previous records. the film estimated grossing $57 million in thursday evening previews. now, that beats the previous industry record of $43.5 million in 2011 set by harry potter and the deathly hallows part two. this being in december it's really bucking all expectations. that's because in december people are doing holiday shopping, and most kids are still in school today. big records there. we have a couple more key facts here. imax theaters posted $5.7 million in some 391 screens. it's almost double imax's

previous record of $3 million from an opening thursday. internationally, the two-day international total is now $72.7 million for a global cumulative. this makes it look like star wars really has a shot of beating the prior record holder for domestic opening weekend box office of jurassic world. that was set this past june at $208 million. this really gives "star wars, the force awakeens" a chance at beating that, and a lot of records being set overseas. biggest single day of all time in the u.k., ireland, germany, norway, and sweden as well as biggest opening day of all time in austria, brazil, new zealand, belgium, netherlands. the list goes on and on. huge record here from "star wars the force awakeens" here. we're seeing folks come in and even tell us that they're looking forward to seeing it a second time. it will be really interesting to see how the film performs over the course of the weekend. even in the holiday period where

the performance over the first two weeks is considered more important than even just opening day or opening weekend. guys, back to you. >> amazing. that's as much as some films make in their entire lifetime. one thursday night. julia, thank you very much. julia borestein. >> we do have additional breaking news. this coming out of washington. eamon javers has that. >> the senate is now voting to pass that $1.1 trillion spending bill that we talked about earlier today. the vote count, as we see, it's still open. it's 65 yeas, 33 nays as of right now. they wrapped the enormous spending bill together with the tax package. you will of that is going through the senate right now. earlier we had a vote in the house of representatives to pass this bill. there was some -- a little bit of anticipation going into that that maybe this vote count would be tighter than expected. in the end not so much. ended up being a landslide vote. in the house it was 316-113 was

the final passable. even though nancy pelosi said she might not have the votes. speaker paul ryan had the votes. now we're seeing two big pi partisan votes to pass this $1.1 trillion spending measure, carl. >> thank you very much. continuing to watch the markets. dow down 219. we'll be right back. investment approach remains. we ask questions here. look for risks there. and search for opportunity everywhere. global markets may be uncertain. but you can feel confident in our investment experience... ... around the world. call a t. rowe price investment specialist, or your advisor... ...and see how we can help you find global opportunity. t. rowe price. invest with confidence.

we haven't had a couple of days this bad on the dow really

in a few months. only a couple of components in the green. >> all despite the fact that oil has managed to build on its gains. we are seeing equities in oil split. oil 35.85 is a level that john and others are watching as potentially a key rehearsal up for oil. the spending bill did include lifting the crude export ban. it's not expected to be too material. it could still have squawk alley right back.

stocks struggling once again for a second day in a row. joining us at post nine this morning, kenny. fwood to see you. good morning. >> thank you. >> what's dragging it lower? >> i fwot to tell you, don't necessarily think there's something so specific. today you got skwad ruple. we understand that. really after the rally -- janet yellen rally the other day,

attention starts to focus on really what's changed and not a whole lot has changed in terms of the outlook, in terms of the struggle, in terms of fourth quarter earnings being downgraded. in terms of people being concerned and in terms of four rate hikes potentially next year. people say, okay, four rate hikes, and there's a repricing of assets. people shouldn't be so, so concerned. we also have technically broke 2030, which is our last technical support. now we're below all of them. the 50, the 100, the 200. now there's no real support spt. you get to the 1975, 1950 level. you could see us just kind of struggling and just stale until we get there. >> there has been a little bit of a flight to safety, though. people are buying treasuries.

>> honestly, today is feels like there's house cleaning going on. they're just throwing it out because they want to clean the sheets and start all over. >> i'm remindle s&p hasn't been down for two full years in a row since 8081. is that going to get people's attention? >> i think it will. it should get people's attention. a lot of those years, you know, right after the crisis, 10, 11, 12. >> it's signalling weakness. yesterday the other regional reports have been weak. he is citying nauling the r-word, which you don't want to

say the recession word. what is it really saying? people are concerned. you get the fed -- don't worry, everything is great. we're raising rates. >> it's a myth that it expands to die of old age. therefore, we're into seven years already this bull market, right? it's got to take a breather. especially when you start raising rates in an environment that feels contractionary. >> people are starting to talk about next year. big surprises. some say it's going to be behind one person earlier this morning. sfwa i see industrial names. if you start to see global economies turning around and infrastructure projects and that, i would look towards industrial names and some tech names. >> buy or for m&a? for what? >> well, to buy in the long-term

investment portfolio. i would be looking for those names and sectors to do well next year. i think it's going to be -- i think it's going to be very stock-specific and very difficult to beginning much the year. >> we still got a few more days to -- >> a few more days of a rally. a couple of days. >> thanks. >> that's it for us. have a good weekend. see you monday. let's get over to whopner and the half. >> welcome to the halftime show. let's meet our sdargt line-up for today. steve weiss is here along with jim levanthal. >> disney shares at this hour even as the long-awaited star wars movie hits the big screen. >> the bagel trade. the fang in 2016. the