it is 11:00 a.m. on wall street. big selloff continues on the dow. down about 431 points. the s&p down 55 to 1,826. there's literally six points away from the ebola panic low of october 2014. a lot of this is due to the price of oil. crude dropping below $26 a barrel now, and some of your top losers on the dow, chevron, ibm, cisco, and boeing, at one point a couple of minutes ago there were two, count them two, gainers on the s&p 500.

joining us this morning as always, john fort, kayla, and myself at post nine. let's get more on the selloff and find out what is driving it beyond crude. bob pasani on the floor. >> crude is the most important thing here. important thing is crude has been going down all throughout the day. down about 4%. so is the markets overall. we are getting close to what are considered classic selling cli maximums. i'm a little more optimistic even though the markets are terrible. take a look at the markets in the middle of the day. obviously oil is driving this. we did break through the august lows. that was 1867 on the s&p. we're at 1,826 right now. new lows, you will not see that number very much, folks. that's 1,100 new lows. the new york stock exchange is roughly 2,500 stocks, 2,600, somewhere around there overall. that's a huge number. here's what's amazing. 29-1 declining to advancing stocks, and the volume is heavy. now, this is what i mean by short-term selling cli maximums. normally you get a 90% down side day on heavy volume.

you string them together. at least a couple of days. that's usually a selling cli maximum. we now have 99% down side days in terms of decline and advancing stocks. what i would like to see today is really big volume. germany is still open. when our market opened, and that's the far right part of that grab here. that's an intraday of germany. germany moved to the down side. you get the lows from the day as well. it doesn't really matter if you look at the sectors here, but obviously energy issing leading to the down side.

it was the airline stocks across the board. it's a 4% downgrade. i noted earlier that this is one of those years where it's been extremely difficult to find any kind of relief. there's certainly no parts of the world that are outperforming. it's rather odd that we see everything down about 11%, including the s&p. that's eafe, africa, europe, far east. it's a broad spot in the world. down 11%. overall stock market in the whole world, which there does exist, is down 11%. if you ex out the united states, it's down about 12%. >> that was a big part of ray's comments from bridgewater associates. he joined ""squawk box"" from davos. here's what he said. >> the problem last year is that almost all assets in the world

went down in value. >> i have been saying i think we'll see zero. he is on the right track, i think, and it's impressive company. larry summers and christine lagarde, the bank at the national settlement. we'll wait and see how it turns out. there are new concerns about.

>> the worry is that oil tips everything over. could we have a recession that's limited to one industry, one geography that doesn't get contagious? >> well, i don't know that you can see that. we already know that the manufacturing sector is in a recession. by looking at the ism figures. if things get worse for the ng sector, that would indicate to me things begin to spread out. >> art, how much of this is based on what's actually going on with the oil stuff and how much is based on fear? netflix was up some, well, almost 9%, 10% after hours last night. it's down 9% now. cisco is down about 5%. i mean, some of these things you can draw the lines and say, okay, i can see how this might be affected by oil in general. some of it makes me scratch my head. >> no. you should scratch your head. this is all about psychology. this is not a rationale connection for what's going on.

what happens is you get -- as oil gets lower and lower, you hear people talking about cold war between saudi arabia and iran. will they now begin to push it lower? there's talk of tankers with 50 million barrels of oil getting ready to roll. the other side of it is we've got the conspiracy they'rists talking about how tempting it would be for russia to try and foment actually warfare in the middle east. that would get the oil price back up and help russia out, and so that's some of the concerns you hear being breweded about. >> a couple of times today this point has come up that the sa i saudis in particular, even with iran coming on-line, maybe in this game of chicken they have managed to run or are about to run enough of their competitors, u.s. competitors, off the road. they would like this to stabilize too. i mean, this is hurting them as much as us. >> they're tapping into the debt

market, the bond issue today. they're depleating their assets, their reserves. not their oil reserves, but their monetary reserves rather rapidly. it's to keep a happy group of citizens, then they're going to have to keep paying some of these benefits, and they're running out of some of those reserves. >> we heard jamie dimon dodge a question or decline to comment when andrew sorkin asked would jp morgan underwrite the ceo of iran co. if that company goes public, if we faebl get iran back on-line and those 50 million barrels get shipped, would that put a floor in oil? would that be enough? >> i think you would get a last final gasp on the down side and then you would tell very readily by what happens here with the fracturer spz what goes on. you start to see people going bankrupt in some of the high yield bonds. i think you need that kind of

surge, if you would. >> how much do earnings matter this season given everything else going on? i don't mean in the short run. i mean out a few weeks, even a few months. if investors are willing to stomach the negative sentiment here, should they be watching earnings and placing bets based on those? >> well, they should be watching earnings and watching the outlooks in particular. you know, how do people see the upcoming next quarter and where does that fit? i think right now earnings are not second class, but actually third class to the emotion that's going on. until that emotion subsides somewhat, earnings will not matter that much. >> art, we might just get a chair and have you park right here. don't go too far. >> art cashin of ubs joining us at post nine. when we come back, a strong quarter for netflix. obviously not helping the stock today. it's down close to 9%. what you need to know. top analyst says the next read on iphone sales will be a lot worse than expected. steve is here to make his case.

take another look at the markets. we've now crossed into, if you are looking at largest monthly s&p declines, this is the eighth worst month in the history of the s&p. down about almost 11%. we're back in a minute. these are the hands that plow the data, dig up clues, create opportunity, and weave messages that lead to sales. these are the hands of pitney bowes, the craftsmen of commerce. these are the hands,

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>> u.s. is carrying the world's

growth right now is actually growing at 2.5%. a prediction the rest of the world is slowing down, and the question is can the u.s. get going with all that around it? that's what you see in the current markets is people worried that the impact with china, the impact of other economies emerging economies especially slowing down, that's going to back its way to the u.s. >> certainly investors worried today taking the dow down almost 300 -- almost 400 points, and the s&p down almost 50. take a look at the heat map. no components in the green today or now for the year. even wal-mart has crossed into the red for the year. >> looks rough out there. netflix reversing earlier gains to fall deep into the red. the company beating global subscriber growth sfimts estimates in its earning report late yesterday. is this reversal a matter of growing content costs and competition or just it's the market taking down all these high growth, high valuation stocks. with us is john steinberg from "the daily mail" north america. and mike santolli. john, first to you, your take on

the earnings. they missed on the domestic subscriber number after hours. people didn't seem to care. focused on the international number and some of their projections for the rest of the we're. this morning, i mean, i don't know if this is second thoughts about that or if it's just overall high valuation. amazon is down more than ibm this morning. what's your take? >> i think it's second thoughts. when i originally saw the numbers and i saw the u.s. miss, i was surprised that the stock was trading up right now. granted, the international growth is huge, but that's coming off of a much smaller base. i think people are saying if they're already reaching saturation in the u.s., you know, that's a concern. with that said, they have the winning idea. i mean, the international number is pretty amazing. when you hear the nbc comments from alan saying that people are going to go back to tv as god intended it, that's not the way of the future. that sounds like blackberry trying to attack iphone circa 2007. i can't tell you if amazon or hulu or any of those will be the

winner, but this is the model, and it's basically houlgts it actually took to get there. >> we saw mention of netflix in the report on viacom from spring owl. they said it was a bad deal to license doria the explorer to netflix. you're trading an entire generation to go to netflix instead of going to nickelodeon, but that aside, mike, the company is spending a lot on content. they're trying to get the whole world on netflix or at least turn the switch o every single country by the end of this year. it has grand am businesses, but in the near term there are still obstacl obstacles. >> there are. i think there cannot be a hiccup in international user growth for the stock to actually weather very well. you the other thing is what john just said i think gets to a larger question of netflix's specialness, right? is it just -- am i just going to go for streaming, or is netflix indispensable as netflix. that's why the company is so focused on original content, having that one must have show. i think i see a secondary issue potentially with the domestic story, which is you can sort of see it ahead to a time when netflix is a less consumer

friendly -- you either have to get pricing to be a little bit more stout and under pricing their product, possibly. they have to crack down on sharing of passwords. they have to basically milk the customers and not any longer. they need to be the here wroe against big cable. >> that's the article in "the journal." 90 million subs may not happen in this country. once you come to terms with that, you charge more than a dozen dollars a month. >> there's no reason they won't get to the 30%, 40% margins. when you look at the rbc report, they already have those in the numbers for 2017 domestically. to me the bigger issue is this is not landing a rocket on its tail on a drone ship, right? this is not as amazing -- i don't think netflix is that special. this is a great product with great content. it's not that hard. they were the first. there are going to be a lot of people doing it. look at hbo's success doing it. >> when they transition from

dvd's to streaming, that was the content equivalent of landing a rocket. mike santolli, i'm wonder whatting does this say about the overall markets, small caps? i was just looking through the list. etsy down 70% since swrul. square is down 35%. fit bit down 68%. i mean, winter has already come to a lot of these small caps, stocks that have recently ipo'ed. what should we take away with what netflix is doing? >> this is no longer a generous market. this is a market that's not going to give companies the trance to figure out the business model and burn money while you guys get it straight. i think that's the smaller companies. i don't know that that really applies to netflix. i think when it comes to netflix, these are high valuation growth stocks. they're kind of the winners. we know they're the winners. it's a matter of what you pay for the winner today, and there's a lot of air under them. >> do you see the selling that's happening today? are those people who say, look, i'm still double my money over the last year. perhaps i'm going to sell today because i didn't yesterday, i didn't the day before. today is finally the day. >> if i'm rebalancing out of

stocks because i'm a little bit nervous, what stocks got really big in my portfolio by me not selling them? it's these stocks. i mean, i think it's simple mechanics. >> just to wrap up on netflix, i think that you can differentiate between saying the stock is really expensive and how much of the winner situation will they take, and look at the marger macrotrend? it's really a critical problem for the established media companies, which is this is newspapers all over again. you are going to have new digital entrants that will take a piece of the pie, which will be amazing for them because they have nothing now, and you have some incumbents, you know, like the "new york times" and this world that would cross the casm. to say this is not going to be the winning model in the future is incredibly dangerous, i think, for an incumbent, and if i was an investor and heard any incumbent media company say netflix is not good or that god intended it to be a different way or that people don't like netflix, people clearly love this product. >> all right. well, we'll see what god intended, although it will work out one way or the other. >> it hasn't weighed in yet, but we're waiting for that. >> we'll see. john steinberg, thanks.

mike, you're going to stick around for a bit. >> up next, stocks continue to fall, but the dow down 386 points. down more than 400 at its lows. oil is the root cause of this. tumbling yet again today. now below $27 a barrel. wti down 5.25%. we'll tell you the next thing to watch in today's market. it is the close in europe. bob pasani showed you germany. close to the lows of the day. there is more where that came from. we will bring it to you live in just a few minutes.

sdmrooits been a tumultuous start. want least of which the financials. speaking to "squawk on the street" exclusive ill. somewhere p morgan ceo jamie dimon saying, yes, we are in a period of volatility, but the sky is not falling. here's what he said. >> you got to separate fluctuation of the market from the economy. it could be worse that we thought was possible. i'm hopeful this is all a big

adjustment, and in a couple of weeks we'll take a deep breath and say thank god that's over. >> that being said, he did quip, if you're not nervous, you're crazy, and he said if we do, in fact, go into a recession, you could see more qe from the fed. he is resounding this chorus that we've heard from all bank ceos, whether at davos or earnings calls. caution on the global economy. confidence about the strength of the u.s. by comparison. oil is still sinking the market. today we heard harvey schwartz say the benefits of the decline in commodity prices are being discounted across the board. he was speaking also about goldman's specific exposure. he said $10 billion in outstanding loans to oil and gas companies. about $1.5 billion of that is noninvestment grade, and those numbers are very important as investors are trying to size up exactly what the risks are to these companies. overall goldman did have a big beat on the bottom line if you include the sales from the financial crisis. advisory revenue for m&a are up.

the backlog of deals yet to be done is still up over last year. goldman, because of that, seems to be fairing the best of the bunch today. it's barely negative. it has been positive earlier in the trade. jp morgan shares fairing over in the recent week, but bank of america, citigroup, wells fargo, down sharply. they closed at 52-week lows yesterday despite what were relatively positive earnings, and mike santoli, given the back drop for these companies, they have waited so long for a positive catalyst, they thought earnings this quarter were going to be it. little did they know oil was going to keep sinking. >> oil, the yield curve because of oil in part not cooperating, and i do think the market is taking also kind of a big picture evaluation and saying, look, maybe we just saw a credit cycle. okay? not that it's going to be, you know, a free for all to the down side, but credit is not going to get better. they're no longer releasing reserves. they're building them up. those were the peak returns if you are morgan stanley, goldman sachs, and especially the new york-based banks. i do think the market is saying what do you pay up for that kind

of company? ultimately if jamie dimon is right and this is a storm and we should not pile into treasury bonds right now, then, in fact, i think that the broader based consumer exposed banks probably are a better bet. >> dimon said he as an investor would avoid treasuries at all cost. there are still some places in the high yield market where they're being priced as if we are already in a recession, and they might actually be attractive buys. do you think that's safe for the average investor? >> i don't know if it's safe. i think he is correct in terms of how these markets panics do play out. the last time the ten-year treasury note was sustainably under 2%, you go back to 2012. it has paid whenever the ten-year gets down here to say, okay, people are just a little bit too averse to risk. maybe you want to take on some more. it's just not clear to me, though, exactly how it plays out in the high yield market. we probably have some bad headlines to come before it becomes -- at least before it feels safe. >> worst perhaps not over. mike, thanks. let's send it back to carl, john, and post nine. >> thank you very much, kayla. let's head over to the nasdaq. currently the worst performer. down over 3%. bertha coombs has a lot more.

>> it's a fairly broad decline. a sea of red on the board here. pretty much parade of horribles any way you look at it. you've got large caps, nasdaq 100 down about 3% now. although chips and tech are relatively outperforming because this today is where you are seeing the worst decline overall. we've seen the worse decline year-to-date that biotech index off more than 2%. it's had almost a bear market.

>> dozens of new lows in the sector. take a look at zions with 8% of its portfolio exposed to energy names. back to you. >> all right. thanks, bertha. coming up, a lot of red on the screen. major averages down more than 2.5%. the next big thing to watch is the european close. we'll bring that to you when we come back. i'm here at the td ameritrade trader offices.

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pakistan's prime minister vowing to fight to the end to destroy the taliban. secretary of state john kerry meeting in zurich with russia's foreign minister sergei lav rov in hopes of resolving differences over who was eligible to join u.n. medicinated peace talks for syria set to begin next week. the differences have threatened to delay those negotiations. sarah palin expected to join gop presidential candidate donald trump on the campaign trail today. last night she endorsed trump praising him for taking on the establishment and trying to make the u.s. great again. palen's endorsement could give trump a significant boost among

conservatives in iowa. the driver was drunk and speeding when he careened off the road. he was charged with a dui. pretty dramatic stuff. that is the cnbc news update this hour. let's go back down to you, carl. >> thank you very much, sue herrera, back at hq. wrurp is closing as we speak. we saw a couple of wild swings as europe closed. simon is here at post nine. simon. >> the european traders -- i don't know what happens after we shut down. do look at the figures on the screen here. do you see how bleak it is here in italy over in greece. there is obviously a deep red coming through europe. moving further and further into negative territory. it's very broad based. i could slice it any way. let's do it this way and look at energy stocks. miners have had a real big session, but every day the miners are on the move. royal.shell as it merjz with bg is now talking about a 40% fall in profits, and an axing of

another 10,000. you can see the way the energy stocks are lower. within the insurance sector, zurich today warned in the wake of the storms in the u.k. on its operating profit, but you see these big -- the big insurers like prudential which are in themselves big owners of assets on european markets and elsewhere in negative territory. i guess for many people the eye of the storm potentially moving forward continues to be the italian banks and then the portuguese banks and the span ush banks that whole discussion about the nonperforming loans and the ecb investigate and whether. >> you see the yields are rising.

i do want to mention the other major banks in europe. it's interestinging that you see them caught up in the down draft as well. the bonds are rising on the safe haven trend beyond the disappointment that we had at the beginning of december when they didn't do what everybody thought they would do. clearly not down to the super levels that we had before when bill gross called it the short of a lifetime. let me wrap it up here. let me show to you where we've tradeed in europe over the last two years now against where we've traded here in the united states. the s&p 500 is the white line, as you can see. the point i'm making here is that europe bounced on the expectation of qe from the european central bank. those gains, even though they're

engaged in $60 billion euros of asset purchases each month, have now been more than erased. antoinette carnivale, despite qe from the european central bank -- >> for that on qe let's get to the cme group. rick santelli and the santelli exchange. >> i would like to welcome my guest doug lazere. thanks for taking the time this morning, ed. >> always a pleasure to be with you, rick. >> all right. i want you to translate for me. be my translator. how in the world country world economy be better, okay, when we have huge amounts of nonperforming loans in china and in europe. we have italian banks falling by the way side. we have quantity takive easing where printed paper money is buying financial assets that can't support themselves on their own fundamentals. why is going back to a world

where leverage becomes the only way we can transmit growth and end up with equity index that is are positive territory? where is it logical to go back to that world? i constantly hear all the ostriches on their sand pillows with their head in the sand saying it's the fed's fault for normalizing after, what, we haven't had any type of rate increase in a long time. is that the trigger? is this the world we live in where slerchlg now the only growth that's sustainable? >> well,, first of all, wronk that's the trigger. second, i think that you and i agree that we should have been in a posture of normalizing a long time ago. probably at least a couple of years ago. had we been there, we wouldn't have this situation right now. at least i don't think we would. on that point, i certainly agree with you. the one thing i would say in some sense to come to the fed's defense, although i don't think you would probably view it that way, is that the fed has been

waiting for a period when the recovery generates consistent positive numbers, and we have never generated consistent positive numbers throughout this recovery because it's been such a weak recovery. what is the definition of sustained normal growth? was it didn't have a three or four handle on gdp? what is that definition? it looked like 2013 and 2014 had pretty much sustained roughly 2.5% gdp growth. 2015 is probably going to be very close, maybe even below 2%. >> based on fundamentals, isn't where we've gone off the track that the picture we're trying to paint wasn't a real picture to

begin with. >> well, i agree with that. again, as i said, you know, i didn't think that you would buy my defense of the fed. the point that i was trying to make -- >> see, i think -- i think everybody knows the fed made a mistake, and if it was a republican president that made the decision to the fed, we read a whole lot more about the mistake itself. is there really a solution as easy as just going back to zero in qe? >> no, i don't think that is the solution. european banks are tight, and when the fed is tightening slightly, european banks are loosening. that doesn't contribute to a stable monetary system.

i would agree with you there. i think, though, if you look at what's happening right now, there is no simple justification for what we're seeing. first of all, if you look at china, if you look at oil prices, a major recession in china that lasted ten years would cost the united states about 2 percentage points of gdp. you can't get a market fall like we're observing right now based on that. second, oil prices declining generally are a positive. now, it's a negative if that reflects all kinds of problems in the world. >> i have a hard brake, and we are out of time, and i'm going to have to leave. i like your solutions. just don't think buying more securities with printed money is going to get us to that solution box that are you outlining. thanks for taking the time. >> thank you, rick. good to see you. >> kayla, back to you. >> thanks on to both of you. we are still watching shares of netflix amid heavy selling. at one point the shares fell below the $100 mark. julia borestein is live in l.a. with more reaction.

julia. >> quite a roller coaster after the past few days. this morning it gave it all up and more. it's now trading down about 4% fog the market slide. several analyst advisory raised the price of the stock. questions are being raised by the company's valuation in light of slowing growth here in the u.s. this past quarter and the company projecting slower u.s. growth in q1. plus, there's potential for some of the u.s. growth slowdown is inevitable. >> you are seeing when you grow steady on a larger number, that percentage of growth is smaller

year-over-year, and that's what we've predicted, and that's what you see in our guide for q1 as well. >> no question that the biggest growth for netflix is overseas. the world expansion worldwide broad enz its potential market by 190 million homes. if those concerns about u.s. saturation is weighing on investors' minds today. kayla. >> thanks, julia. up next, more trouble for the iphone. a top analyst says sales this quarter will be a lot worse than expected. he will make his case up next. take a look at the s&p heat map. very few s&p stocks remain in the green, if any at this hour. we are back in just a moment.

>> coming up, with the well swrof picking up again, march wroe joins us for the hour. what is he doing in the current environment? plus, we'll trade netflix after its earnings. apple now a long-time bull is making a gloomy prediction about iphone sales. our experts answer your questions. tweet us@halftime report. kayla, i can't wait to see the interview you guys are about to do, and then we're going to react to it on our program in about 15 minutes. >> yeah. it was a big call this morning, scott. thanks. well see you in just a few minutes. a new apple survey, as scott just mentioned, out from ubs this morning. not just confirming some of the shipment concerns surrounding the iphone, but also saying the results were worse than even ubs had expected. the firm, nonetheless, maintaining a buy rating. a price target of $130 a share.

shares continue to fall this year. down 2% today. below $95 a share. joining us is the ubs analyst behind that survey. steve, it's great to see you. >> great to be here. thank you. >> so we've heard the shipment concerns, but you say that it's actually the mix of products. what did you find? >> let's be clear. we're not changing our unit numbers. i think everybody has a sense there have been two production cuts, and units have come down on the street. today working with our partners who conducted the survey, we're looking at what people actually bout baut in the december quarter, in the u.s. we're finding a shift to the older phones. maybe the features of the 6s aren't getting them. the older phone is doing a bit better this time than a year ago. that has an impact on the average selling price per unit. we think the asp is probably

going to come in lower than the street thinks. you mentioned the u.s. what conclusions can you draw about the global demand picture from what you found? >> so this survey is u.s. only. it doesn't tell us anything about what's going on overseas. however, the ubs evidence lab work that we do suggests that the search volumes overseas are still fairly good. particularly in china. a lot of what we're talking about here is timing of upgrades, but the apple ecosystem appears to be as strong as ever. >> steve, why do we even care about the u.s. upgrade numbers given that the growth is overseas, the margin opportunity largely is overseas. could there be a huge blind spot in this in that it is looking at the u.s. number and not the

global picture? >> well, there could be, and that's why we do our own surveys to try and get what's going on overseas. we did the china survey not long ago, and people in china are looking to spend more on their next phone. apple is expected to gain more in china than anywhere else. now, if the chinese economy weakens to the point where it hurts apple, all bets are off. we don't think that's what's happening today. china tends to go for larger size phones. you'll probably see more 6 pluses than in the u.s. never the leshgs u.s. is important. it's the leading market. they still sell more phones in the u.s. than they do in china. >> i'm trying to think of theories that your survey came in the way it did. maybe they figure i have enough bells and whistles now or i'm already spending a ton of money on mobile, or i'm going to upgrade in 12 months anyway. why would this be happening? >> i think there might be a couple of reasons. certainly the features of the 6s versus the 6 aren't as dramatically new as moving to the large screen phone with the 6.

i think we've seen a fair amount of upgrade demand in the developed world that maybe we haven't yet seen in places like china. it's going to take some time to know. i have friends who get $25 off their verizon bill per phone because they've kept it more than two years, and they have paid it off. that might be another reason people are holding on to phones. >> you have $130 price target, so steve, even though you say we -- you still believe there's some light at the end of the tunnel. woel see how it pans out. we appreciate your time this morning. >> thank you very much. >> steve from ubs. >> ibm reporting a fourth quarter earnings beat after several bad quarters. ibm's lower than expected forecast for 2016 weighed on the stock. it's still down, let's see, around more than 4% right now. ibm's highly profitable software business also suffering.

customers who weren't on services contracts already were not buying much software in q4, and that echoed intel's concerns about enterprise spending are as we heard about just last week. ibm wants the strong u.s. dollar, and it will continue to weigh heavily on them as they compete in a growing cloud business base against the likes of amazon's aws service. we'll have a better sense of that when amazon reports. hey, shares of square also joining the list of tech stocks now below their ipo price. it's not looking so great out there. coming up, we're going to ask one early square backer and venture investor whether jack dorsey is still the right man for the job and why tech seems to be having an ipo malaise. don't go away.

another tough day in terms of both square and twitter, falling sharply with square dropping below the november ipo price of $9 a share for the first time. is dorsey able to effectively run both companies. joining us this morning to talk about it, square investor and managing partner at jgp capital. it's good to have you back.

>> whether the stock is at nine or where it was a few weeks ago, he is still doing a great job. i think as a square shareholder we're excited and happy with the job that jack is doing. >> it's so hard to decouple the stories of these two very different companies from each other. you see a major product outage at twitter. people are going to sell square because they believe that's more of a distraction there dorsey because he has more to fix at twitter. how do you keep these two stories from being intertwined? >> if you look at square, it's a newly public company. it's during that time when they're just public the first few quarters of being a public company that there's a lot of misinformation. there's not much real information out there on the company. it's going to take time for them to show good kwaurtsz reporting and showing the metric that is

they're going to show and show that the company is being well managed and growing. we're long-term investor, and we're going -- assist a long-term investor we're focused on things like is this company achiefing the goals we think they can achieve over a long period of time, and so far we continue to see the company executing well. >> i wonder if you had a response to, i believe it was -- several days ago who came out and said it's wrong to compare jack dorsey to steve jobs running apple and pixar at the same time because the product cycles of apple and pixar were completely different. apple had fewer products coming out on a more staggered schedule with twitter and square they're both software and services driven companies that are supposed to be coming out with

product updates daily. srnl weekly. there's no way a single person can run a company on that kind of schedule. what say you to that? >> i think that criticism was levied at what's on at twitter. we're not an investor at twitter. obviously, you know, your viewers will have their own opinions on where that stock is headed. i use the service quite a bit, and i know that you guys do as well. as far as the stock and the health of the company, i think it's a fair criticism to say, hey, what's going on at twitter? the story at square is very different. i look at the job jack has done folks below him who are reporting directly to him that are excellent. sarah fryer, and the one that runs the product at square, the product cycles in companies like square are much faster than they were back in the day when steve jobs was running both pixar and apple.

jack has put good people in place to help engineer great, fast, quick product cycles. if you look at square, their customers are extremely happy. they are taking the new products that square is releasing very rapidly in the market. as it relates to square, i don't think that criticism is all that warranted. >> maybe it's not so much about the division of dorsey's management time. maybe it's about the number of potential new clients, right? if the economy truly runs into trouble, that small business owner doesn't add a separate stosh or can maintain their payments manually. do you worry about that? >> that's a good question. again, we're in an environment where square has been growing for the last five, six years. in a relatively healthy economic environment. if you look at the cohort data at square, their merchants grow

with them methodically quarter by quarter. as the economy -- if the economy turns down, what's going to happen to merchants? it's a good question. i think square is in as good a position as anybody to weather that storm because they are enabling small merchants to grow. their products are all dined to help small measure has notes run their businesses better, take payment in more and flexible ways. i think they're in good position. >> we appreciate that. >> coming back, stocks continue to fall. we're near session lows. down 457.e e the hands that build the machines, the machines that sort, stack and seal. these are the hands that keep private information private. these are the hands of pitney bowes, the craftsmen of commerce. these are the hands that dig for opportunity, identify patterns,

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annual rate, and very stable commodities falling at a 2.15% annual rate. that's according to the latest government data. >> it was zero or below 11 of 20 years. that is a deflation problem. only in 2013 did it break below, and now the two are very close indaed. critics argue it's defractured deflation because of the on again off again rate policy. monetary policy praised by many for acting early and forcefully, even too much, to fight deflation.

>> close to session lows. the afternoon still ahead, though. let's get to headquarters. scotts whopner and "the half." thanks so much. welcome to the halftime show. let's meet our starting line-up for today. josh brown is here along with john and pete. also with us is gabelli funds. kenny, director with o'neil securities. we begin with breaking news at this hour. the selloff on wall street. stocks down sharply again today as crude oil dips to its lowest level in 12 years. the s&p has suffered its worst monthly point decline ever. hard to find many assets up today. others in gold, maybe bonds. mario, it's good to have you here. we've been fortunate to have some very expnc