year ago right about now. it is not our fault. we can't take too much credit. >> it is great to work in here. >> i don't know about living in here. >> it is a great place to live and work and. >> too many people living on top of one another. unnatural. too much waste. we have to run. >> make sure you join us tomorrow. "squawk on the street." also, from new york city is next. good thursday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber. china down 7% overnight. trading halted as you know fort second time in four days. europe has followed suit and then oil below 33 as a fresh 12-year low. as joe just said. china at the center of the global selloff. further devaluation of the yuan.

a halt in chinese trading for the second time this week. that session lasted guys, only 30 minutes. they tried to do this 15-minute circuit break are and then said let's scrap the whole thing. you talked about them holding the line, jim. are they capable of that? >> they obviously don't really know how to handle their own markets. they are playing it by ear. it is very much a work in progress. if we are down 7% tonight, you would, indeed, take out the 2927 lull and be at 2900. it would break the line in the sand. unless they do something, it will be down again. no market can bounce. markets that are down big attract more sellers. you can't get buyers to come in. this is going to sound crazy. i was doing some price changes. you are talking about five, six times earnings.

that will not attract me. i don't trust anything about china. i am saying they would at least let it go. maybe some buyers would come in at some point because of valuations. obviously, if you can't bounce, because they clothes it, you ain't bouncing. >> when they had the turmoil last summer, i remember saying, they may pay the price for this. they did manage to get the market moving in the right direction, if you think the right direction is up again after a great deal of turmoil. they have never let the market actually be free. >> no. >> so, as carl said, you are down 5%. they close it after 15 minutes and you get down to the 7% and it is done for the day. it doesn't tend to create confidence. >> will they take another approach? they have been very active in

the past. when you look at the actual index, there are two indices, the nasdaq of there's. is icbc a real company, bank of china, yes. china life, yes. at a certain point, there would be some value to some even american funds, not if the market is so broken, stow speak, the mechanisms are not working there so you can't catch that. >> all these mixed messages. they have said the yuan is going to stay stable. it is fixed. they said circuit breakers wouldn't become the norm. it is twice in one week. do the communists still have the leverage you argued they have. >> the leverage they have is over what you are allowed to do. if they come out and say, listen, we are not going to let households sell more than 1% of what they won. again, they are making it up as they go along.

it is rather amazing to think that they had no clue, it seems, of what the circuit breakers would do in terms of the consciousness of the country. it is a multitrillion dollar market. we can't just say, listen, it doesn't matter. at the same time, as david said, you have this spillover of confidence. minus seven there translate to minus 3.5 here. theoretically. that seems to be some sort of ratio you can use. >> speaking of where we find ourselves, three days, three trading days into the new year and the s&p down substantially. we are dealing with crude below $33. right now, i have it at 32.87, down another 3%. we have the yuan falling, concern about china, whether it is warranted or not. more of what we saw last year. there certainly is a great deal of focus on it, whether it is manufacturing or whatever it may

be. we don't seem to have anybody here that wants to step in and buy the higher multiple stocks from last year. >> david, you have to go back. let's use some touch stones. on august 25th on our lows, the s&p was at 1526. we are at 1990. the dow was at 15666. we are at 16900. arguably, 1300 down. 100 s&p points. a little more than 100 s&p points too high. >> too high based on what? the idea that we are going to revisit our lows. >> you try to make the corelary. >> frankly, if they threat go down 7 again, you go back to where they were when it was down 7, china, 2900, 2900. let's see. there were six stocks that are

down. chevron was at 69. it is at 83. >> are you taking into account that flash crash low. flash crash comes into play. exxon was at 68. it is at 75. oil is trying to struggle in the december, 2008 low of the crash. we were at $32. almost everyone i deal with other than the goldman sachs analyst were saying that oil would hold here. i think it is important to note that chevron and exxon were the two stocks above. almost everything else is down. >> freeport, a new 52-week low on that stock. below $6 a share.

we can go through all of the names. energy, we have talked about it for at last over a year. to the extent they have access to capital at some of these mid-level energy companies. they are looking at a commodity price that is below 33. it has to be coming soon. >> freeport has done so many different things. they have been able to take the debt from $20 billion to $19 billion. when you look at all the great things that lawler has done at chesapeake and picking off southwest energy from a 5.3 buy and they still can't get their debt down. no cash flow issues. the stocks are meaningless. >> pioneer, has been around telling some institutions they didn't need to do that. suddenly, they jap m at 117.

boone pickens saying i didn't think we would go below 40 and now saying it could go below 70. >> is there ever a bad time to raise money in a market like this if you are an oil company? >> no, no. southwestern had a crystal clear balance sheet, beautiful, until they bought the chesapeake. they have to be thinking, we need to raise equity. >> understood. we know the impact already is being felt in the industrial economy in terms of the big slowdown in oil. we have at least what is in our stock market would seem to be sending signals as well. do we start talking, again, about a slowdown here in the states. we talk about the recession word when it comes to the industrial economy. am i going to start hearing more about that? >> if you do, boeing was at 125 on august 25th.

boeing went substantially higher. home depot was at 110. a big safety move. >> domestic names are bluff, because everybody already went there. >> they did. look at home depot. since the august lows, reported an unbelievable quarter. goldman sachs is the one that is down, not apple. goldman sachs is the one that is down the most from when we were back there other than the obvious caterpillar and american express. gold map is out of sync with the others. am i talking about buying these? >> what i would like to do. please notice some of these stocks are already through their lows but others, we mention home depot, nike, they are still up well above. they could come down. pfizer is where they were. if you want to look at it another way, we have five companies that are now yielding more than 4% in the dow. that's important too with the ten-year at two. >> safe havens, where do i go in

a market like this? >> verizon was below where it was. i could argue other than aol, nothing has happened there that is negative. i am sure you are going to talk about yahoo! later today. >> profits, recession, construction spending has gone negative. everybody now is talking about whether december was a true policy error. >> i don't like to argue with people who are valuing the bloomberg billionaire. george soros did say in 2011 that greece was another 2008. it is important to point out. he is brilliant. he is rich. you can end the conversation right there. one of the things i want to watch is walmart. the 100 million people stock is where it was august 25th. why am i looking at that? because i want to see who really has benefitted from what is going to be $1.75 in gasoline. macy's lays off a huge number of

people and the stock does not trade down. it trades up. i want to have stocks not on the buy list but on my understand list. i want to understand what's happening. i think a lot of people are confused about what's happening. if i understand it, then i can make a decision. >> you mentioned something we rarely hear which is a benefit of lower oil prices. it seems now the narrative is simply lower oil, bad. >> ten states are affected negatively by oil and another 40 states the last time i looked that are actual beneficiaries. in the s&p, you have got 15% you can cut numbers on. you have 85% that you can raise numbers on. >> i know it is saving my building on the upper west side a lot of money. >> that's nice anecdotal information. >> fuel oil, not cheap. it is cheaper than it was. >> i'll go an he can doelt. we have had earnings this morning. leslie wexner is one of the most unbelievable managers. at l brands, he is doing one of

the best decembers ever. why? he has high emotional content. what does l brands sell. we have victoria's secret powering l brands and madello and corona powering constellation. >> both of those things are emotional. maybe people turn to more beer when december is that week. maybe they are drinking mexican beer and avoiding bureritos. wall street bracing for a tough open. take another look at the premarket as china has another spill overnight. we will get to some of these other names, including jcpenney, upgrade for southwest airlines. more "squawk on the street" live from post 9 in a minute. bob dylan. to improve my language skills, i've read all of your lyrics. you've read all of my lyrics?

i can read 800 million pages per second. that's fast. my analysis shows your major themes are that time passes. and love fades. that sounds about right. i have never known love. maybe we should write a song together. i can sing. you can sing? do be bop. be bop do. do be do be do. do do do be do. every insurance policy has a number. but not every insurance company understands the life behind it. for those who've served and the families who've supported them, we offer our best service in return. ♪ usaa. we know what it means to serve. get an insurance quote and see why 92% of our members plan to stay for life. ♪

what a sell off and what a session in china. trading halted after 29 minutes. the shortest session they have ever had. the selling pressure was just too much. for more, we get to eunice un.

>> they had their shortest day in history before circuit breakers were triggered cutting the day short. everybody is complaining about the circuit breakers. investors were spooked after they set the chinese yuan lower in the currency's biggest downward adjustment. they were fretting over the government's decision to lift a ban put in plays over the summer that will allow major share holders to sell stock. they said they would restrict the size of the shares sold and require that they be sold over time. those new rules weren't enough to turn around sentiment. the circuit breakers, that were only installed this year, have added to the panic. that is even though they were designed to calm investors down. a lot of people have been calling for an toentd circuit breakers saying we are not the u.s. market. we are a volatile market, where 5% swings are very normal. that's the trigger point.

there was actually an online poll that showed that more than 86% of the voters thought the mechanism was not reasonable. over half said that the breakers wouldn't be triggered again on friday. i was speaking to one investor that said that tomorrow at 9:30, he is going to be one of the first people to make sure he sells his stocks. not looking very good at all. >> he has us bracing for tonight, that's for sure. thank you very much, eunice. >> interesting statistics. you think tonight could be as bad as last night? >> it will be unless they do something. it is very interesting. they don't know or pay attention to what the s.e.c. says about the way insiders can sell. they just seem to be so ill-equipped to actually run a stock market. >> that's not going to work. down 7% stock trading. wait until tomorrow. down 7%, stock trading.

>> it will. in 12 days, you won't have to worry. >> not to mention the ban supposedly being lifted on insider selling. now, they are saying you can sell no more than 1% and even then, only once every 30 days. >> welcome to the u.s. rules. if you have a small cap stock and you are trying to figure out how you can do it, again, we have ways to deal with this, so to speak, in the united states, about what insiders can do. i think that the chinese ought to just sit down with, i don't know, mary jo white and say, what do you guys do? they should sit down with the late joe kennedy? do they have any idea what they are doing. they think it is going to stop is it. they have become a lightning rod for selling. it is time for the party to stop selling and start getting serious. stimulating. >> he with will get cramer's mad dash. a countdown to the opening bell. one more look at the premarket.

sufficiently ugly to call it another big selloff. we are back in a minute. or stop to find a bathroom? cialis for daily use is approved to treat both erectile dysfunction and the urinary symptoms of bph, like needing to go frequently, day or night. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain, as it may cause an unsafe drop in blood pressure. do not drink alcohol in excess. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long-term injury, get medical help right away for an erection lasting more than four hours. if you have any sudden decrease or loss in hearing or vision, or any symptoms of an allergic reaction, stop taking cialis and get medical help right away. ask your doctor about cialis and a $200 savings card. here at the td ameritrade they work all the time. sup jj, working hard? working 24/7 on mobile trader, rated #1 trading app on the app store. it lets you trade stocks, options, futures... even advanced orders. and it offers more charts than a lot of other

competitors do on desktop. you work so late. i guess you don't see your family very much? i see them all the time. did you finish your derivatives pricing model, honey? td ameritrade. this bale of hay cannot be controlled. when a wildfire raged through elkhorn ranch, the sudden loss of pasture became a serious problem for a family business. faced with horses that needed feeding and a texas drought that sent hay prices soaring, the owners had to act fast. thankfully, mary miller banks with chase for business. and with greater financial clarity and a relationship built for the unexpected, she could control her cash flow, and keep the ranch running. chase for business. so you can own it.

we are poised for another lower open. what was that number for the week again? we are down 2.6% on the s&p. so far, jim, for this week, and for the year. >> the european is down. 2.8% today. >> where are we going with our mad dash? >> i just want to talk about some things that worked last time. in 2008, if you presume sorrow

was right. companies that could afford to pay a dividend, we are on the culp of that. the average s&p stock is now down 20% from its high true bear market. that does not include netflix, far from average or amazon. >> you aptly named that. >> are those overvalued, if you are a regular investor, of course they are. if you want to look into 2008 strategy, what first worked were companies like verizon that maybe even though people were concerned that we knew the cash flow, it covered the dividend. the yield is five.

maybe when it yields six, it is almost back to where it was before the rate increase. that's what you look at if you feel you have to make a move. i've been saying listen, be patient. some people are saying, jim, why haven't you advocated paying? i advocated selling on the "today" show when the dow was 11,000 and went to 6,600. that was right and it didn't help. warren buffett came out and said, how could anyone have sold during that period? i want to take that off the table. if you think there is systemic risk, i can't help you unless you wait until yields get higher. >> you don't believe there is systemic risks? >> no, i don't. china, yes. >> look to the credit markets, not to the equity markets. that's where systemic risks, usually will start. >> let's use 17% of the s&p that's affected negatively by lower oil. there is going to be systemic risk if you are in the oil. that means there are so many

companies that do well. >> it gets you to credit and then back. >> it is $300 billion that's at risk. they find that obviously the market costs towards chevron and exxon. kevin o'leary is a businessman. this is anecdotal. it is great for business that oil and gas are solo. i am like, huh? it is great for business that oil and gas are so low unless you are in the business of extracting oil and gas. >> we are going to keep our eyes on so many different markets. the s&p futures looking like they are, plunging right now. we are back on "squawk on the street" with the opening bell after this. it's hard to find time to keep up on my shows.

that's why i switched from u-verse to xfinity. now i can download my dvr recordings and take them anywhere. ready or not, here i come! (whispers) now hide-and-seek time can also be catch-up-on-my-shows time. here i come! can't find you anywhere! don't settle for u-verse. x1 from xfinity will change the way you experience tv.

at ally bank no branches equals great rates. it's a fact. kind of like reunions equal blatant lying. the company is actually doing really well on, on social media. oh that's interesting. i - i started social media. oh! it was my...baby.

you are watching cnbc "squawk on the street" live from the financial kamt capital of t world. we are looking at the dow to revisit something approaching the august lows. we were last at 16,000 on september 28th. it hasn't been that long since

we were in this neighborhood. >> a very good point. i want to emphasize exactly what you are saying, which is we want to call it a plunge and that's correct. it happened on slower motion then until the flash day. 1566, that's the line in the sand. prices that we thought were abnormal. if that comes back, again, it has two holes, so to speak, without people saying that. high anxiety here. >> it is going to happen in the face of claims today and the jobs number tomorrow. people are going to have to weigh whatever, quote, unquote panic we see. they are spending, just spending at different places than we thought. it is interesting. i was doing some soul searching this morning, early on and was thinking, what happens if you try to say that there are some positives. i think people say, i don't want to hear the fact that what

people want to hear is, please, reaffirm my anxiety. it is harder to do that when it is our country and not china. if i'm in china, and they say, reaffirm my anxiety, i say, on your way, my friend. >> santelli has a point, mike santelli, our markets commentator, that the world sells overnight and then we start nibbling in the afternoon like a country-wide buy back. by the time it gets here, we go down 2.5. i like santelli's analysis. >> all that said, world bank

cuts their outlook for 16. that mobile growth is down from 3.3. china, they see 6.7. they took the u.s. up to 2.7. >> that's quite encouraging now that the bear says, oh, boy, they are really going to have to tighten many times. the spin is negative no matter what you do. sometimes you have to pull back. using the sports analogy of the anxiety people feel. they said, jim, how could you be sa sanguine in the face of inis your rec shun. there are going to be

opportunities. >> the big board, rising capital, a nonprofit assisting struggling individuals and communities building strong businesses. over the nasdaq, mind/body, a provider of cloud-based software for the wellness industry. some of the big names in retail, macy's got covered last night. the lay-offs. the store closures. the cutting guidance. they say warm weather was 80% of the comp decline. >> they went over. i had sent my friend, carlton, english to get some prices for the tommy hilfiger stuff. 50% off. anything coat, sweater, boot, when we did deliver in the alpha conference, there was a conversation when the stock was at 72, it is literally in half. what did you make of the fact that they are actually discussing san francisco, chicago, new york, real estate? >> i think it is interesting. where it ends up, i have no idea, jim, in terms of what the transaction is that they, perhaps, pursue. do you think it is really a

change in language for them? >> i think terry longren is very much like john bud. when it is working, change everything. when it is not, try to change everything. sticking with the 36 stores to close out of 900. i thought that was severe. adding backstage to their discou discount, the soft price thing. >> i have always argued they ought to have the off price to get rid of stuff they have rather than to sell it to some company rather than tjx. >> they are up 30 cents or so. >> yields 4. it attracts me.

it is very hard to watch twitter. people say, i am saying bye, bye, bye. bed, bath, and beyond, buy, buy, buy, yes. you don't need a weatherman to know which way the wind blows. >> verizon. >> i know i don't want to put them in a death match with john legere because they play at different rules, including suit and tie. i think at 5%, if you decide i need a little income, i don't think people are unplugging verizon today. the cord cut on your cell phone is just not happening. >> with at&t, you get a dividend yield of 5.7%. >> an unlimited watching of all football games. now, i can watch it on the major leagues. i can cut the cord.

>> ubs has a note out. they argue that the global stock market is already in a bear market. >> and the ones that are standing tall, the japans, u.s., europe, ex large cap, will eventually succumb. why is that not true? is it because people want dollar assets. is it something else? >> it is not going to succumb because of things like constellation brands. companies that are very well run and doing well. they have lower labor costs and a terrific product. there are enough companies like that. proctor is not well-run right now, i would argue. proctor, is it going to go back to 69 where it yields four in change? if it does, i don't think people are going to say, i am going to wait until five and change for fang, for facebook, amazon,

netflix and google. are those stocks doing well? >> i am not recommending them other than alphabet which is selling at 22 times next year's earnings which seems cheap. to bring full closure, earnings will matter. they tend to matter. this is not china where the average big cap financial sells. i have no hope for that. that is trailing earnings. in our country, we have a lot of stocks that are relatively that offer value on a management yield cash flow business. down 5%. >> you mentioned the earnings we have gotten so far this year. even the revenue is a little light. >> the stock has been down anticipating a not great

quarter. the charitable trust owns it. you saw some amazing numbers there. for retail, we look at comparable sales. the l brands was at 8%. you are dealing with a plus five for walgreen's. prescriptions were up. that's a pretty stable business. pretty good managers there. do you buy that today? a member of the s&p probably succumbs. i am not talking apple or disney. i am not talking anything emotion. those have become emotional battlegrounds, apple and disney. we seem to be getting some reports that the chinese regulators may be announcing the suspension of these circuit breakers. >> that would give you a chance to buy it, down 7% today. i mean, i don't even want to mention the names of some of these chinese companies. they are very difficult to value. do you want to own the largest? i would put that up with

petrochinas up with petrobras being the worst companies to own. do you have faith in china? >> it would be nice to have a day of trading in which there is actually a day. the government can come introduce some buying. the government has the reserves have been flowing out by the way. when you have that currency that has been devalued. when you close the market before buyers can come in, presuming there are some buyers, let's say it goes to 2500 on the shanghai. i am going to regard that as positive. then a large cap investor in this country says, you know what, i've got to start getting 1%-2% china. that's too even in a scenario where china gross, 2%, 3%. >> i know we are trying to confirm this with the shanghai stock exchange to make sure these circuit breakers have been

suspended. >> that would be very positive. >> it would potentially be very positive. >> i think when the market is down 7%, down 7%, and down 7%, there are some buys, theoretically, or at least the government will get a chance. as soon as you hear that, i would say, well, it is phoney. i would argue the whole construct of the chinese market, to some degree has a level of lackey and rigor. is that fair to say? real quickly on the mna front, i wanted to mention media general. they had a deal to be acquired and merge. all these stocks are moving. media general first comes out and says, we have completed negotiations on a transactions with netstar. they are going to pass 1055 shares in cash and a contingent value depending on how much they get in proceeds from the sale of spectrum in the upcoming action where they are selling the

broadcast. it looks clear to roll except meredith wouldn't terminate the agreement and now they are raising it to 390 in cash and going to give you half the company in shares. america's shareholders would receive 2.8244 shares of meredith media general for each share of meredith. this he would only 49.8%. you are saying, we would do a deal. we will see where this ends up. it is having the impact of sending nexstar down and media general up. our charts are not functioning. >> i was going to talk about that in a minute. >> i want to point out, listen, this china news is important. everyone just presumes it is going to be down 7% tonight. either way, if we get price

discovery and it goes down big, either way, stocks are not going to be as negative as you would have thought without circuit breakers. with circuit breakers, we think it is funny. without, we think it is covered and that's positive, even if it is lower. the dow is down 242. let's get to bob on the floor. >> believe it or not, carl, we are not as bad as the rest of the world. this is essentially a down 2%-3% elsewhere in the world. if you look over in asia, not just shanghai, which was limit down for the csi 300. the philippines, the nikkei, indonesia, all the emerging markets, essentially were down about 2%. here in the united states, we are down 1.4% on the s&p 500. while everybody agrees the chinese currency and concerns about the chinese economy are the real cause of the decline, the chinese authorities have taken a number of actions, four of them, since the summer, in an

attempt to limit market volatility and they are now moving back on a number of them. circuit breakers was one of the main ones. you have just heard that the chinese have suspended that circuit breaker. that's a little bit of a surprise. a lot of people i talk to have been agitated. why didn't the bans, 5%, 7% declines, the trading was not big enough. here in the united states, 20% will halt the market. that has never happened. we have never used them. people agitating to use u.s. style circuit breakers. you have heard they are suspending those circuit breakers. this is still in place. over the summer, they limited the number of futures contracts that could be held and the trading that could be done with them. that is greatly limiting the ability of hedgers to limit the market. you heard that was going to expire friday. they have walked that back and revised that essentially still holding that in place. although, they will allow some limited sales in the future. finally, you have heard about

the national team buying stocks. this was also recommended over the summer where the authorities buy at certain periods. they have said they didn't want to do that anymore after the moves in august. that too is still in place. the bottom line is that at least two of the four moves that they took over the summer are still in place. i think the chinese authorities are learning that the law of unintended consequences i very, very strong when you are dealing with a global, interconnected economy. you see daimler and volkswagen and basf, big chemical names and some of the big financial names like deutsche bank. tech is leading the down side. you have the big cap tech names, apples, microsofts, intels, all down roughly 2% across the board. energy on the weak side and materials and industrials. again, i have said this several times this week. this looks a lot like 2015 again in terms of what is down the

most. there is tech with microsoft cisco. i have been asked about why the volatility isn't higher. the vix is at 23. you would think it would be closer to 30. a lot of traders are no the that active. i have called and asked about activity. it hasn't been that strong, either there or on the putt call desk. the options desk. i think that will change if we see these big intradays change. china is apparently going to suspend these circuit breakers starting tonight. let's get back to eunice eun in hong kong. there was plenty of room more that china was going to suspend the circuit breakers, because so many people were complaining about it. we just saw on the shanghai stock exchange, as well as on social media, they are saying,

in order to keep the market stable, it is approved that the shanghai stock exchange will halt the circuit breakers mechanisms from january 8th. so that is tomorrow. there were plenty of complaints ahead of time, rumors that because a lot of people here, i was on the phone with one phone manager who said the reason for this is that the chinese market is different from other developed markets such as the united states. this market is very volatile. we have 5% or 7% swings all the time. it is not enough time for anybody who actually wants to buy in once it triggers at 5 to then break for 15 minutes. anybody who wants to buy in doesn't have the time they need in order to try to help pick up the market a little bit. so there were so many complaints. online, there was a poll that said it all.

86% said they thought the circuit breaker was not reasonable at all. more than half of them believed that the circuit breaker, if it was going to be in place tomorrow would be triggered. now that it is not going to be triggered, there is going to be much more relief in the market. i'm sure that everybody is going to be going there and trying to figure out what the stock market regulator has to say about it. >> it is going to be an eventful night tonight. thank you so much for that. >> we have benchmarks in china even too. 17 months ago, the index was as 2,138. we are still 1,000 points higher than that. there was a giant bubble. that's when the bubble began, 17 months ago. >> they are making it up as they go along. >> that's my point. the prices seem to be abstractions. it is not like we can sit here

and say bristol-myers, it is time. when you look at the actual stocks and this is the index, is this the time for hong fong tech? i don't know. it is hard to get a read. >> would you put this in the category of growing pains. is that where they are? >> thank you. that's terrific. communists are not great capitalists. they have always been great traders. i think the idea haveof an actu stock market. this is a difficult thing for the party to figure out. it is happening when all of us know that china is slowing. we want to be able to relate this. we say, wait a second. we have p.e. multiples that have come down and compressed dramatically. the country has slowing growth. so it is difficult to figure out the value. let's say it is nasdaq 2000. you go back to where the bubble ended. it began. you take it a little bit lower.

let's say it is the nasdaq. i this i it nk it is better tha nasdaq 2000. a lot of those stocks that didn't make it. it is very hard to value. a traditional fund maker is looking at this saying, i don't know what i'm getting. >> earlier, you asked me about time warner. it is about the broader market. if you notice since we started this decline, most media stocks are down like the s&p. not time warner. up 4.7% thus far this week. why? >> a lot of chatter around about potential activism. none of it means it is actually going to happen. when we say activism, there are activist share holders that own stakes in time warner. nothing means that they are going to make a move on the company. there has been certainly speculation out there that perhaps another activist will show up in the stock at some

point. it remains to be seen. when you have moves up like this, somebody might say, in this market, i am going to take a little pay and go home. >> that said, it is certainly something to keep an eye on as the approximaty window opens up about a month or so from now, the ability to nominate directors. the golden globes take place. certainly, he will be visiting with some of the large share holders the company has getting their temperature as he did during the fight against fox a year and a half ago or so. a fight successfully concluded from the perspective of mr. lucas that promised to reduce $6 in '16 and $8 in '18. that's no longer the case. that has contributed to the weakness in the price.

i wanted to put it in people's mind. it is aan outlier, jim, having moved up so dramatically where everything else is down. what would the proposal be? the fox deal would be $73 a share. time warner is larger. would it be something focused on hbo. it is not as if time warner is not aware of those plans. should they actually show up on the stock in a significant way and try to force a proxy fight? >> let's relate this to disney. viacom, a program we can cut easily. disney, espn, we can't. where is time werner in the equation. >> tnt. that said, turner has had some

issues without a doubt. >> hbo is the key asset. >> it doesn't mean the dollar y.

if you were to look at the end of 2014 until around the end of november of 2015, dollar yen was pretty much not going anywhere and solid as a rock.

as a matter of fact, the last day in november was around 123. from december 1st to today, that chart looks like a ski slope. it makes sense. we look at dollar one and dollar yen. >> carl, back to you. >> we are keeping our eye on oil is prices. >> we are seeing volatility in oil prices coming off the session low of 32.10.

technically speaking, lower highs and lower lows indicating that this could affect. any time we see nervousness in the market impacting, it is an issue. something to keep an eye on is the dollar. on the supply side, everyone is continuing to pump. the product is out there. i want to switch gears and talk about the metals. some interesting action. gold reaching a nine-week high. back over 1100. new buyers and short covering there. a flight to safety certainly on a day like this. copper seeing a 6% drop. about a 4% drop o loan today based on fears coming out of china right now. it is giving you a picture of what people are seeing in the marketplace. we'll see you at 10:30. >> thank you very much, jackie deangelis. a couple of reports, one is the journal saying the capital markets are still willing to trade some of these fracking

companies. they are also calling it the frac log. new supply, still able to come online. >> talking to boone pickens last night, natural gas, not enough piping to get it to where it has to go. it has rallied a little bit. oil, way too much. you look at the prices and start thinking, what is the difference? why can't we be back to the 2000, 2003 euro. that's kind of when we had more supply now. boone pickens would say, wait a second. we are only 1 million barrels in excess of demand, 1 million, versus the 80s when there was 20 million barrels. there is a supply/demand issue. hey, let's produce as much oil. no one says, we ought to hold back. i do think this is the level. it is interesting we are holding the december of 2008 level, isn't it, at least for a day. it is interesting. if we go back to where we were the last time. 12 years ago, that was iraq. we went into iraq and we thought

that iraq was going to pump 12 million barrels. they have never o gotten to that. there was a belief we could go substantially lower. the 20s were where we were from 2000, 2003, and 1998 to 2000, we were below 20. these are within the realm but we did have tremendous oversupply then. you are going to anticipate what china is going to bring tonight. >> we are going to talk about the relatives, what did happen and what can happen with our dow. i am focused on yield and whether or not the stocks have come down. maybe we pick. i still think it doesn't work. i know people want to see some sort sof, i can't take it any more. that's what we got august 25th. with are did that get you? >> it got you somewhere good if

you bought and sold. >> how about in 2009 in march, what did that get you? ben bernanke comes on 60 minutes and says, we are done with the banks going under and then we have a haines bottom. >> that was a bottom to end all bottom. >> i was worried about cashing moo i paycheck and where i should put it. now, i'm not that concerned about that maybe cybersecurity. the money is there. >> eagles. now, i'm worried. >> "mad money," we'll see you tonight, at 6:00 p.m. >> when we come back, bob doll on the selloff and his predictions for 2016. dow session low is down 3.18. we have recovered about 100 points of that. back in a minute.

there's a lot of places you never want to see "$7.95." [ beep ] but you'll be glad to see it here. fidelity -- where smarter investors will always be. if only the signs were as obvious when you trade. fidelity's active trader pro can help you find smarter entry and exit points and can help protect your potential profits. fidelity -- where smarter investors will always be.

good thursday morning. welcome back to "squawk on the street." i'm carl quintanilla. the selling continues. up pace. the dow down 205 after shanghai down 7.3% and trading halted after 29 minutes. we're watching crude as well, managesing to come a built off the lows around 33. >> our road map for the next 60 minutes starts in asia. another selloff. we are 100 points on the dow. how farlows on this, day four of trade for 2016. >> pore retail pain. macy's cuts jobs and store account. why is the stock up nearly 3%? cornage in commodity prices. oil dipping below the 12-year lows. >> the world bank cutting its global outlook.

>> the good news, the chinese authorities have decided they are going to abolish a rule that effectively forced many to sell on the shanghai market earlier today. eunice eun has more. >> hi, simon. the trading day here was really cut short, only 30 minutes. the shortest they have had the. people were saying after the market dropped, there was a 15-minute pause and all they did was sell, sell, sell, until it dropped by 7%. they were really upset about the circuit breaker system. all day people have been complaining that the circuit breaker system is not suited for china, because it is such a volatile market. tonight, they announced they are suspending that circuit breaker system. on the shanghai stock market exchange, there was a statement saying, in order to keep the

markets stable, it is approved by the csrc, which is a chinese regulator, that the shanghai stock exchange will halt the circuit breaker mechanism from january 8th, 2015. that, of course, is tomorrow. again, the csrc holds a weekly meeting on friday after the market closes. i'm sure there is going to be a lot of expectation and a lot of questions asked at that particular meeting from the regulators. in terms of how people are reacting to this knees, in some of the investor chat rooms tonight, this is definitely going around. it is still a small slice of the overall picture. online, there isn't that much chatter. then, again, it is quite late here in china. tomorrow, we are going to see whether or not the government was able to make a move that was big enough and send a good signal enough to investors that they are definitely in control.

guys? >> eunice, get some rest. we are likely to see you in just a few hours. our eunice eun joining us. price discovery wins again. what happens tonight? >> well, i think you'll have to see a little more selling coming in. there won't be that pressure to get out before the halt begins. more concern is the currency. they have lost a good deal of reserves. the currency is a concern and the other concern is crude oil. a $32 level is a critical area. if it breaks 32, it might induce some extra selling, because

there are some derivatives products linked to the 32 price. you can see some of those weaken and the other thing is the storage area in cushing, oklahoma, is very close to being filled up. if that gets completely filled up, oil can go into free-fall. you will have no place to store it. it will just come on the market. >> are you looking for the washout in sentiment here. i imagine you are not seeing it today. while the volume has been up at other times, nobody is throwing out the bath water, never mind the baby. we have some further way to go. the volume at this point is higher than normal. that may indicate that our friends are using american liquidity to get out. >> it means essentially, we are not seeing panic selling. >> absolutely not. >> what about levels to watch, below 2000 on the s&p, below

17,000 on the dow. where are the levels of support? >> you have to go almost all the way down to 16,000 for the dow. the other levels to watch would be 1955 to about 1958. there is some support in there. if we can get back down around that, you came very close to that at the lows today. if you get back down around there, that which be an area treasurers will home in on. >> they had a new rule that suggested if you had a 7% fall in the stock market, trade suspended for the rest of the day. this is really important. they have now abandoned. very important to point out the difference between that and what we do here. the idea that after major disaster, the stock market must open to allow people to trade. many people would say, that

seems very almost blood thirsty is perhaps the wrong word. inappropriate sometimes. the reason we do it, surely, is because otherwise the pressure to sell gets greater and greater and greater as you have seen in china. people can't get out. it has a velocity of itself. we do it in this country for the way we do it for very, very good reasons. >> we do have trading halts at certain levels. >> you could bam. you trade later. they are pauses to allow people to regroup. closing for the balance of the section would only occur usually in the final hours. so you are not giving up a great deal of time. >> the other thing occurs to me, having watched stanley fisher with that slept interview yesterday with steve liesman, is how the chinese and other countries don't have the sort of people that can go out in public like yellen and fisher and create calm and say what appears to be the right thing and explain what is happening. nobody in china is explaining what is happening.

eunice e uchtun is reading off website about how we do things here and how they will learn to do things there. >> we try for transparency and full and open knowledge of what's going on. >> it tends to work out better in the long run. >> i would love to know your reaction to soros speaking in sri lanka. >> i am not sure where all the analogies he sees are. obviously, it is apparent we still have areas of contagion. china drops. everybody else sees their markets nervous. i'm not sure where the analogy to the highly leveraged part of 2008 would be. again, we'll see that if we get to some critical prices like crude down below 32 and see if some of those derivatives come back to haunt us.

>> art, we may see you sooner than later. thank you, art cash shiin. >> with the dow down, let's get more analysis on the market volatility. alberto adis joins us. he is the head of bank of -- let's focus on what many serious inves investors are focused on. that's what china did with the currency. was the assumption on world markets that basically the chinese would take one for the team, that they would have their currency artificially high in an economy that was weakening? the reaction seems absurd. when the euro moved by 10%, nobody reacted. when the yen moved by 15% the year before, didn't worry anyone. why does this worry us today? >> i think two reasons.

one reason is that what is the driver of the currency weakening. we clearly see capital flight out of china. we see chinese corporate and retail trying to get their money out. we had reserves overnight showing the biggest loss in quite some time. this was the biggest loss of reserves since august even though reserves benefited from valuation changes in favor of reserves. we had $108 billion of reserve losses and $19 billion evaluation changes. if you take everything into account, they lost $127 billion of reserves in one month. >> right. that outflow is continuing. >> they do have that -- i was going to say. they have $3 trillion of reserves give or take. >> they have a lot of reserves. the magnitudes are important, right? we are talking about big numbers. the second issue is that there is clearly a change in policy

here. the bboc used to manage the currency very tightly against the u.s. dollar. there has been a change here. it is very clear they are managing it against a basket of currency. if we all agree the dollar is going to strengthen going forward, we agree the fed is the only central bank hiking interest rates. there is one direction for the doll are aand if y dollar and if you are managing your currency against the dollar, that's in our forecast. we see it continuing to weaken this year. >> there is a perception that the chinese are behaving in an unfair way. they are master manipulators and artificially deflating their currency in some sense that that is wrong. the point that you are making surely is that the currency is overvalued. there is capital flight. people trying to leave the yuan. the chinese have to meet it with

dollars for dollars each time they do that. it is an untenable situation. the free market solution is for the yuan to be much lower. >> the solution is for it to continue to weaken until the balance of payment stabilizes. it depends on how much capital flight we get out of china. we know that corporates are hedging. remember that the chinese was a one-way bet until not so long ago. there was no point for corporates to hedge their exposure to the dollar. now, it is different. so we have corporates hedging. we think most estimates indicate that about 50% or 60% that was out there to be hedged has been hedged already. there is more room to go. there are retail investors trying to diversify their exposure, getting some of their money and savings out of china. there is still capital flight.

the move would have been a lot more dramatic. >> let's bring it back to the u.s. this whole notion of decoupling, that the u.s. could stay resilie resilient economically. is the u.s. economy and the u.s. stock market signaling different things about the underlying u.s. economy? if so, which one is going to prove to be right a day before jobs report and as we look toward fourth quarter gdp? >> the weakness that we have seen has not been segmented to overseas alone. we've seen very disappointing numbers here in the u.s. as we turn the corner into a new year. the ism has fallin back to back months. housing activity, very dispinting. disappointing consumption numbers. sefr certainly, at least some of the fed has to be questioning whether or not that december move was the appropriate policy move. >> you certainly don't buy the stanley fisher argument that

four rate hikes is within the ballpark given what we have overseas. >> those four rate hikes were based on an expectation of the economy continuing to improve. when he talks about the ballpark, that's based on the fed's internal forecast. what's interesting, we are very likely to see continued rate increases during this year even without further improvement as we know the fed has abandoned the data dependant stance for more expectations model wech. we could see further rate increases. >> many in the markets are fooling themselves. they nl thbelieve that is not g to happen. lindsey and alberto, thank you. retail movers, macy's announcing restructuring, stock up more than 3%. oil at some 12-year lows. a lot more on energy this hour. we are all over the selloff in the markets and what's going to

come out of china tonight. back in a minute.

during the course of the session is higher. courtney reagan is back at hq with more. >> they have given the streets lot to digest. the stock initially plunged on

the news. investors are pushing higher. if you were surprised at the retailer's same-store sales, ceo terry lundgren did set the low expectations going into the holiday quarter after they released their third quarter result. they are making some quick moves to improve operations, including adjusting this as part of $400 million in expense savings. they are lowering the earnings guidance. this is the second time they are doing that. many are still bullish. 4% dividend yields and joint venture real estate exploration. plus, there was that strong online performance over the holiday season. jcpenney reporting holiday sales up 3.9% reaffirming its ebidda

target. upping the lower end of the fourth quarter guidance range. children's place, quarter to date comps up 7.3% and increasing fourth quarter guidance. not all positive. finish shares tanking more than 11%. it is naming the president to the role of ceo at the end of february tichlts also lowering its guidance and announcing 25% of the stores will be closed over the next four years. costco shares are lower despite posting u.s. comps. it is a mixed bag for retail. continue to be very picky when you are looking to buy into the sector. >> macy's, one of the few stocks higher. our senior markets commentator, mark santoli is here with more re, a. you have been talking about the

late day buying. >> now that we have seen it, maybe it will go away. maybe we are seeing it at the open. obviously, our response here has been pretty modest relative to the rest of the year. it seemed like the selling momentum in the past few days has grown overnight and intensified into the late morning, that european close and it kind of sat there. each of those three days, you saw money coming in and taking the market off of its lows. what you saw inside the market, you didn't see these washout numbers of 10-1, down stocks to up stocks. people were buying. i wonder if it means that u.s. investors, hedge funds came in somewhat defensively positioned. hey, there is a hurry to buy stuff. we have to go in maximum long for this year and, therefore, they can sit it out and wait. i am also noting, people have been talking about the lack of panic. the vix is not able to get up much ahead of steam relatively to the global market moves. i don't think people are

cool-headed about this. i this i it is because they are not as exposed coming into this panic around the world as they might have otherwise have been or they were in the summer. >> we have people saying china is going to drop like an anvil or maybe the lack of a circuit breaker means you can sell. you know you will be able to sell throughout the session. no urgency to get out. >> when you have opened up all the exit doors, you don't have to stampede all at once to the one. that might be an rgment for why it eases up. we should be watching the chinese currency action a lot more than we do the shanghai index. that seems to be what really unnerves people is the velocity of that fx adjustment out there. >> tower point about the vix hit a high above 23. we were above 26. they north crazy, panic levels. they are elevated. we are also seeing some flight to safety. again, not extreme. gold is catching a bid. treacheries are higher. the japanese yen is higher.

>> even within our markets, what's been working, if anything, it has been the defensive stuff. it has been the consumer state and the yield and utilities and reads. the yield curve flattening. there is generally a message that says, we are a little bit cautious here. if you wanted to argue that they're kind of rebelling against a potential policy error by the fed in december, you could kind of make that case. i don't think you can say for sure. >> to come back to what you said about the conversation, is the glass very half full. if you go back a year, 18 months, two years, you wouldn't have had these pockets, almost like vacuum pockets in the market. at the beginning, we were down over 300 points for news that two years ago we would have broadly ignored. that surely would be my main focus. maybe it is just because i work at 10:00 a.m. >> it is an incredibly erratic market. i don't think it is glass half full but more of an observation that since this long period and all of these shocks and big

money thrown completely off sides because they got it wrong and the models failed. you had all of these macro actions and policy moves that really had outsize market responses in the short term. i feel like people have pulled their horns in a bit. that's not necessarily glass half full with you want to see panic and capitulation and a washout. the s&p is where it got to a few months ago. it is not as if we have been buying it all and sitting there and expecting great things. >> can you come on every day? >> closing bell. >> talk to the proper people and i'll be here. >> china announcing it is abandoning its circuit breakers as we have been discussing. more on what global investors

and fund managers have been saying about it after the break.

china, front and center for many. coming up on the oil selloff. bob doyle will be here with his 2016 playbook. trader offices. steve, other than making me move stuff, what are you working on? let me show you. okay. our thinkorswim trading platform aggregates all the options data you need in one place and lets you visualize that information for any options series. okay, cool. hang on a second. you can even see the anticipated range of a stock expecting earnings. impressive... what's up, tim. td ameritrade.

good morning. i'm sue herera. cnbc update. french officials say a man shot dead outside a paris police station was wearing a fake explosives vest. he threatened police with a knife and carried a noble phone

and a sheet of paper showing the islamic flag with claims of responsibility in arabic. the attack comes on the one-year anniversary of the charlie hebdo killings. all 17 miners stuck hundreds of feet below the surface in an elevator at a salt mine in upstate new york have now been rescued. the ordeal lasted about 10 hours. a spokesman said they were not in danger. >> forecasters predicting less rain in southern california today. el nino storms flooded part of the region after heavy rains yesterday. some most maotorists were stranded as you see. no jackpot winning tickets sold in yesterday's $500 million powerball drawinging. that means the jackpot will roll over to at least an estimated $675 million for the next drawing on saturday. for all of you dreamers out there, good luck! that's the cnbc news update this

hour. let's go over to jackie deangelis. >> thanks so much, sue. the department of energy out with the weekly natural gas storage report. a drawdown of 117, bcf. we were looking at 93-97. we got a significant leg up, around 235. this has been a weather-driven trade. the demand increasing as temperatures have been getting colder. this drawdown is well below the five-year average. temperatures are more mild this winter than we have seen them the last few years. still, nat gas was down 12% in a month. it is up about 2%, a little more than that. there is some short covering in this trade as well as new buyers. sarah eisen, back to you. stocks, in the meantime, deep in the red. still looking at more than 1% declines on the major averages, on that deep selloff, my

worldwide co-anchor, will ford frost, used to be an agent fund manager. what are they going to do next? wilfred, you have been busy since we talked last. >> good morning. i can't believe it is still morning time. there we go. let's just frame what this chinese yuan debate comes down overall. the key question is whether they are letting the currency slip on purpose or whether the private mark it is is taking things out of their control. market moves suggest investors think the latter so far. i have now had some perspective from some managers in london. one reminded me of the amazing job the chinese have done on managing from rural to urban. this is the next step. have faith. they will get through. that was the sentiment he was saying. he reminded us of the point we were discussing earlier.

on a trade-weighted level it was flat, positive, not down. we are here in the u.s. with too much focus on the yuan move against the dollar and even against the dollar. although, the chart looks quite scary. flat for so long and the sharp selloff that we have seen. only a few percent move. the yen, euro, the rayal. he also said the pbc cares only about its own economy, not the world, not the shanghai, which serves the rich few rather than the many and the corruption clamp down is a good indication of this, something far wider than people expected, for the many in the long-term, not the few in the short-term. in that sense saying the authorities haven't lost control. all of this is planned. a quick further perspective. what does this mean for europe? we have had improving news over the last year. things have gotten better. we also had q.e. over the last

and if we look at the dax, we are back at levels we saw at the start of 2015. it has given up almost all of last year's gains in the space of four trading sessions. if you don't think the europe economy, the economy, not the market, will be dragged down by what's happening in china? you can get back the process we saw 12 months ago before the fundamentals were improving and q.e. had started in europe. this investor is arguing, make sure you consider the link to the economies. the correlations that we see this week in markets, perhaps a little overdone. there is a different perspective from the bearish one we have been discussing most of the day. >> all right, wilfred frost, thank you very much. see you tomorrow morning, bright and early. everyone should tune in. it is the first thing you need to be doing as soon as you wake up. watching worldwide exchange at 5:00 a.m. eastern. a lot of talk about china. boy, did we get a market action

to start our new show. >> it is the first thing i do in the morning, every day. >> good, simon, thank you. you all should be. these u.s. talks in the meantime seeing red again. a broad selloff. off the lows, the dows down about 147. don't fear. this is not the start of a bear market. joining us here on set at post 9. bob doll chief strategist at nuveen out with his new predictions. grading himself on the 2015 predictions, about 7 right out of 10. in terms of your u.s. equity call, single digit returns. doesn't look like a good start. >> to get to single digits, we are going to need double digits. this feels a lot like august. i don't want to be poly an ish. a lot of similarities. china authorities did something then. they will do some things now. >> you have confidence in them. >> i think there will beguns go

make that happen. in the meantime, a u.s. consumer that i think is doing just fine, job growth, wage rate gains, much cleaner balance sheet. i am not pounding the table on the u.s. economy. it is in okay shape. >> we will see tomorrow with the big jobs report. isn't it tough to be a u.s. strategist? don't you have to know the predictions for both? >> bingo. for the market to be up or come out of the funk we are in the first week, we need stabilization of oil prices and the cessation of the move up in the dollar versus the yuan. >> we are not getting it. >> we will get it at some point and stocks will come back to let's pay attention to the u.s. 87% of our economy is domestic. only 13% is foreign trade. far below any other country. >> we were talking earlier about the recovery we have had on the market. we have halved our losses

because of the abandonment of the circuit breakers in china. i actually misspoke earlier. i suggested that we didn't have the circuit breakers here in the united states. we do. it is called a level three circuit breaker. it would cut out trades for the entire session if we fell by 20%, which we did 29 years ago with the stock market crash. china isn't in your prediction here. how can you have a list that doesn't include china? >> i had one last year. china falls below the u.s. in terms of contribution to gdp. it reversed last year. that was the question we got most about that prediction. people couldn't believe what happened. china did slow more than we thought. we did have a second set of predictions related to china, as india overtakes china as the fastest growing emerging market in the world. india's population will surpass china's in the next ten years. >> this interplay with the fed in interest rates is

fascinating. it is fascinating to see how people dismiss what stanley fisher said yesterday. overnight, goldman has issued a really important piece of work. they have the fed models. if you have a further 25% decline in oil, a 10% increase in the dollar, they still only delay the rate hikes by one or two this year and make it up in 2017. many people in the market are not with the fed. they simply don't believe what the fed is telling them. >> well, remember august, september. august, we have the china carfuffle. september, the fed meets in september. many hoped they might begin the rate rise. their whole minutes related to things overseas. if the dollar moves up and the oil is in free-fall, the fed won't raise rates. >> that's precisely what goldman is saying they will do. on the models, two or three rate rises this year. >> why didn't the fed raise rates in september.

all of the same fundamentals existed. look, my view back to sarah's questions. this is going to calm down. when it does, we'll get back to wage rate inflation moving up, the unemployment rate fallin below 5%. >> part of your expectation is that everybody is talking about coming back home, focusing on domestic. you think nondomesticout performs. >> i think we have had five years in a row of u.s. bonds outperforming nonu.s. bonds and 4 out of 5 in equities. i think it pendulum is going to start switching, on the basis global growth and foreign trades picks up eye little ba little b. >> within the u.s. market, you like technology. you liked it last year and it worked. this year, you like financials, which was somewhat of a consensus trade coming in to the fed tightening and hasn't worked out at all. >> you look at that as earnings.

>> of the cyclicals in the market, the financials are the cheapest. if you are going to own some cyclicals, that's where you go and the fed can help us by raising rates two or three times this year, not withstanding goldman's comments. >> the market moves are stunning. we are watching some of the climb back of the dow here. now, down about 134 points. bob doll, thank you. good to see you in person. >> the world bank is cutting its growth forecast for the third straight year. ahead, forecasting, will join us next on cnbc.

>> are stocks becoming a bargain? if not, when they will be cheap? there is more "squawk on the street" coming right up.

welcome back to squawk object the street. tech stocks are one of the

selloff leaders so far today. the sector was down as much as 2%. weighing on the sector, shares of invidia and paychex and oeullet packard and yahoo!. the biggest sector weighing the most. >> only 148 after futures to a 400-point decline before the open. the world bank cutting its forecast for global growth. it sees souring prospects on the world's largest markets. joining us now, ian kohaks. it does feel like a perfect storm leading us to 2.9% global growth which is somewhat pathetic. the sixth year we are about he low growth. what is the likelihood of a global recession? >> we don't envision a global

recession. we had only four of them since 1960. 75-80 to 91 and 2009. the big issue is the local economy is weak. w we still expect emerging economies to. growth has been slowing in emerging market economies. whether this year they can do that and produce a higher growth number. >> i wanted to ask you about china front and center for global investors. you took down the trast to 6.7%, which still seems relatively optimistic for growth. do you see these sharp moves if stock market reflected at all of what's happening in the economy? i would say the currency as well, which is worrying more

people. >> yes. quite a bit of volatility in currency markets. let's look at what happened last year in august. there was quite a big plunge and policy makers came in, understood measures. the impact on the real economy was quite small. after all, the chinese stock market, relative to the advanced economy stock markets still quite small. the ownership of households still relatively small. the overall impact on the real economy last year was quite minimal. china has been able to slow down in an orderly fashion and we expect that this year that orderly slowdown is going to continue. let's remember, it is difficult to slow down an economy that was growing at the really high rate. this is a difficult challenge. these things are going to happen. the hope is that policy makers

are going to adapt and find ways to get to the point they would like to get. >> it doesn't feel very orderly with the moves that we wake up to today in the stock market and currency. in the interest of time, i want to ask you about the u.s., which is the relative bright spot in the global economy. it seems like there is a lot of pressure, though, on u.s. consumers to carry the burden, not just of the u.s. economy with manufacturing and industrials shrinking and under pressure but the entire global economy. can the u.s. consumer be the growth energy they need to be right now. >> the u.s. economy is still quite healthy. labor markets are quite healthy. we will see it is going to continue. to what extent? we envision growth will be around 2.7%. last year, it was around 2.5%. the u.s. alone cannot carry the global economy. we need to see emerging markets

dealing with their underlying problems, putting up higher growth numbers. given that they have become very large, they need to carry their part of the burden. >> should also mention 7.8% growth in india is not so bad, the fastest grower in the world. thank you for joining us on this outlook. ayhan kose of the world bank. >> let's get to rick santelli in chicago. hi, rick. >> hi, simon. i would like to welcome my guest, brian wesbury. you are the perfect person to have on today. we have known each other a long time. you always have a good sense of the marketplace. i think we are at a time where transparency is confused with the truth. medicine is good and proper for the disease that it is applied to and people that go to ivy league schools can control

outcomes without unintended consequences. why do we live in this fantasy land? >> back in 2008, because we believed. >> not all of us. >> we believed it was all capitalism that failed and government saved us. once we did t.a.r.p. and bought into that belief that government can save the economy, since then, everyone. >> you mean the prequel to the big short. >> fannie mae and freddie mac can get everybody a ophome. >> that's why we haven't learned our lesson. >> what came out of that was, even republicans believe that the governments should be saving the economy. >> after the lights go out between the center and right. >> we have gotten to this position where every time the market goes down, we want the

fed or we want somebody to do something. >> it is. >> didn't they teach us to be that way? >> yes, they did. china is the same way. so the chinese stock market has gone down. >> who was the first to dpgo >> that would have be japan in 2001. think about that. >> hold up d >> how did that turn out? who was the next one to do it? >> it was us. then europe. >> once japan and the united states took it to a whole new level. once that occurred, we really can't speak out about other countries managing markets, can we? >> no. >> i think that's why the fed is so dicy with china. >> i agree. >> if your kid was a kid in the neighborhood that teach all other kids to light matches, you're kind of responsible for the drapes being on fire. >> i could not agree more. that's the problem with us

managing our economy. we can't go argue against socialism. >> the final point that's crazy, if the chinese think they the control the price of their can he recollect the equity market. >> they will end up in the same place russia did. >> i can say that much of our government isn't a whole lot different than theirs including where they got their diplomas. it's been a pleasure. simon hobbs, back to you. >> it moved us down 350. thank you very much. apple falling once again below $100 a share. we'll get to the nasdaq to see what else is moving next.

we're rapidly cutting our early losses down here. the big board down. over 300 in the red. the nasdaq in negative

territory. >> i'm thinking i should have worn a different color for contrast. chinese stock coming up pressure. investors finding no trouble selling here. jd.com off the lows this morning is down about 10% already this week. that's the worst week it's seen since last august. the big problem and the big grab for the nasdaq is apple hitting five-month lows. lows we haven't seen. take a look at the lows it's hitting them on strong volume all week. this morning the stock dropped below $99. already trading half a days share. the fundamentals on apple, the concern is there may be slowing iphone sales. that's weighing on the sector that's down. microsoft were end of the year winners. they are getting sold. also weighed heavily on the

nasdaq. netflix is the big exception. take a look at netflix today, investors seem to be taking a bit of safe haven this morning in the couch potato trade with more than 190 countries worldwide. a little retail therapy. walgreens near the highs of the session. among the best performers today after beating quarterly earnings. ross stores higher today. alta is also a winner. looks like folk with a little lipstick on the situation this morning. back to you. >> thank you very much for the report. we are off session lows. the dow is down 108 points. looks a lot better than where we were at the open. s&p 500 down. wti and brent crude oil went positive. just a little over 30 minutes away from the european close.

anything could happen. lots happening. hello folks. i'm here with danny white. we're talk ugh about home safety. thanks for coming in. why are you passionate about people protecting their homes.

good morning. it's 11:00 a.m. eastern. we've seen a significant turn around on wall street this

morning. dow down about 318. making a comeback in the last hour. right now you can see the dow is down and the s&p is down. among the losers oen the dow, boeing and caterpillar. apple falling below the $100 mark. china with losses. jd.com and baidu moving to the down side. that's after the major sell off in asia. >> this is crazy. i don't know if they did it on purpose or show us on a day by day basis.