jokes. there's a saying [ speaking foreign language a joke like that would make latins very nervous. you shouldn't test fate with a joke like that. >> i'm sure a lot of investors who do not like that joke either "closing bell" starts right now. >> hi, everybody welcome to the "closing bell." i'm kelly evans at the new york stock exchange. >> i'm wilfred frost a bearish start to april the dow down more than 750 points at the low. >> we're down about 613 points right now, but in -- and the lows were, what, within the last 30 minutes, an hour. >> it was a steady selloff from the open, about 12:00, a brief reprieve for 90 minutes and down to the lows in the last hour or so. >> don't blame the londoners europe was closed.

futures weren't budging that much. >> asia was a decent session up in asia but europe closed >> a very different picture as we enter the final hour of trade. >> let's get to our reporters monitoring this broad selloff. bertha coombs at the nasdaq, bob pisani on the floor of the exchange. >> you're hearing about how some of this is generated by tech concerns, semiconductors being overvalued and f.a.n.g. stocks but there's a general deleveraging going on. i'll stick with the dow components nike down 4% nike is about 10% off recent highs just about a month ago then we have some of the industrial names they're all down the same way here look at this it's a 3% to 4% down 3m, was $359 in january. $210 that's close to 20% off. big names that did well, home improvement, home depot is down 3.6% it was $207 at the end of

january. now $170 down 15% or so even financials have been weaker we noted that. not quite as bad as the rest of the market goldman, about 50 points on the dow. gold was $275 two weeks ago now $244 that's down 10%, 11% finally, energy is doing nothing even notice oil has been relatively high. energy has underperformed the whole year here's a 52-week low, exxonmobil, $72.44 what's going on besides the tech issue, valuations? the tariffs are really weighing. the ism services number was strong this morning but a bit below expectations and we saw comments from a number of participants here's one they don't put the names on them this is one of the participants. new tariffs are causing concern across the supply change full impact will take a few weeks to reveal itself that's the hard, quantifiable issues floating around in the market going from, oh, it's all

about the tax cuts and the global economic expansion now towards other issues on the negative side like tariffs, trade wars and, of course, potentially higher deficits. back to you. >> bob, thank you for that meantime, it the nasdaq on pace for its lowest close since early february bertha coombs is watching the action there for us. >> wilf, the nasdaq dipping into negative territory it so far has held those february lows, the swoon we saw. it's coming off its worst quarter, having snapped seven consecutive up quarters. right now it is down 10% from its recent high in march, but the composite, the nasdaq composite has not closed in correction since 2016 following the brexit selloff and it really is about tech, but biotech also getting hit hard today with disapointing news on a drug for depression. biotech down 14% from highs.

technology and chips are also down more than 10% from their recent highs as well apple putting some pressure there on the chip space. really when apple talks about switching chips or there are reports of that, it often does impact their suppliers intel today taking it on the chin on those reports. and then the f.a.n.g. names today, the majority are right now down more than 10% from their high in the case of amazon, they are -- and netflix are off 15% facebook is actually now at bear market levels off more than 20%. you know, kelly, it feels like over the last couple of weeks it's been nothing but horrible, terrible, no good news for technology >> yeah, certainly the market looking for those reasons to sell off as this continues bertha, thank you very much. that's our bertha coombs is this the time to buy some tech stocks? you heard bertha talk about how much they're off their highs joining us is media analyst

scott devit. thank you for joining us you can get facebook down 20%, netflix down 15%, apple or microsoft down 9%. any opportunities there for you? >> we have a short list of buy recommendations at the moment. mostly centered around the e-commerce names, amazon, alibaba, booking holdings downgraded a number of these stocks earlier in the year i think you have to go one by one to see what the issue is in terms of whether there's opportunity. i mean, netflix is up 70% year-to-date in two months you have to put things in perspective. facebook is going through the biggest crisis in the history of the company. so, i think there's more information to kind of be understood before you can truly understand whether it's a buying opportunity today or at some point in the future. >> scott, let's talk a bit about amazon then since you mentioned it clearly that is off sharply today partly because of president trump's ongoing comments against it. what do you make of those

comments from the. the? is it likely to lead to any negative action against the company or is it just words at this stage >> as it relates to the topics that have been discussed, which are sales tax collection and the postal service, sales tax collection and implementation at this point in time actually is a net positive for amazon because the company already collects on its own inventory. it doesn't collect on third party. all you're doing is disadvantaging small businesses and third parties. and to think that even playing field, you know, for, say, a $200,000 merchant that may be selling for amazon versus amazon that does $250 million in gross merchandise value, if you put equality in place, amazon wins so, the sales tax advantage clearly is to amazon the post office situation is more debatable we certainly think, you know, that amazon will do just fine through that, but that's a more debatable topic. >> scott, let's get into that

for a moment the president, and i wonder how much this contributed to the selloff. we mentioned futures were quiet this morning at 9:35 a.m. the president tweeted again about amazon and the post office, saying the post office loses a fortune on amazon what's your understanding of the economics there? >> well, the post office loses a fortune on everything. and the post office was put in place, you know, to have a truck go by every house in america as a social service and so their core business, which is their noncompetitive business, which is first class mail and marketing mail, that business was shrinking per year. you have this competitive business they built on top of the service business over the years that leverages that legacy infrastructure and actually in many ways, i would argue, subsidizes the business that is dying, which is that nobody sends mail anymore because of this new invention

called e-mail. >> wilf does a lot of thank yous >> scott, back to what it means for amazon is it a screaming buy given the pullback and your sentiment on these tweets >> any time you begin to incorporate kind of irrational political actions and/or just political actions in general, you don't -- you know, you lose certainty around any situation i think that's a factor not just for amazon but the whole group in the long run, as it relates to these two topics specifically, i'm highly confident amazon will be in a strong position in both areas. and as we've said in our published work, for long-term investors, we've been buying the stock here in an expectation of long-term outperformance in the short term, anything can happen >> switching focus very quickly, just to facebook as we mentioned, off 20%, did tim cook

have a point late last week when he seemed to suggest that he puts customers first in a way facebook doesn't and 20% pullback is a buying opportunity for that stock >> the cook comment, i think others have commented already and i'll leave that to others. as it relates to, you know, facebook's business and where it stands today, there's a lot of information now in the market. there's still a lot that's not answered, which is ultimately the impact on the business i think there have been good points that have been made that it's less about users leaving the service. it's potentially more about using the service less because you may trust what the information that is put on the service and much less than you have in the past and so that dynamic, which by the way was beginning to surface in the fourth quarter before cambridge analytica is the area that deserves, you know, more attention. i think that's -- we're not going to know the answer there until the company reports next quarter's results coming in

early may. >> we'll be watching that closely. scott, thanks for your time. appreciate it. let's talk about these markets. joining us on set are kenny, cnbc contributor and trader here for o'neill securities alongside kevin o'leary. welcome to you both. kenny, i feel like you're champing at the bit to talk about these markets. it's extraordinary what did you think about the way it's unfolded so far >> you know what, you could tell the minute we sliced right through the long-term support at the 200-day moving average we tested it three times today when the market opened, it was weak, it was approaching that level we didn't even stop and think. it just went straight right through. the minute it went straight right through is when you saw that pick up in volume because that signal, that piercing of the long-term support level initiates a lot of these risk ml management software programs that signals out to asset managers to protect their

portfolio. by no means is this a panicky selloff. people aren't jumping out the windows. you shouldn't get that sense at all. it feels ugly, uncomfortable we're down 3%. it's not anything anyone is not necessarily surprised by considering all the headwinds we've been talking about for three, four months. >> kevin, your take in terms of the broad nature of this selloff and the size tech stocks are down but they're not the worst performing sector. is this broad etf type selling >> i don't blame etfs for this i think this is a compression of multiples right now. earnings are going to be quite good in the next two weeks you'll be surprised at two elements free cash flow will be fantastic, which i look at the problem when we talk about indices like the s&p down 2.9% today, you look at the high stocks represent as much as 15%, 20%. the so-called f.a.n.g.s, which everyone loved for the last

seven years, they're losing 4%, 5%, 6% today that's the volatility coming into people's portfolio saying, wow, i'm really paying for the fact that i overpaid, maybe, and i'm willing to own stocks at dramatically high pes. there's a good lesson here we have a whole generation of investors that have been in this market since '08, '09 that never had corrections like this. never experienced when a stock you love takes a 30% hit most investors have lived through three and four of these cycles and understand this these high pes will have a hard time getting back to the stratosphere any time soon. >> was google ever that expensive? the interesting thing about that basket is you have companies like netflix trading at triple digit multiples and -- >> netflix, nvidia - >> apple kind of got looped in there, too. >> there's two type of tech stocks there are ones that matured into

investments, apple, microsoft, they pay dividends, and then stocks like nvidia or, you know, a tesla, which are not really investments. they're speculations you one day think tesla will be the same as general motors maybe, maybe not now you're learning the lesson of, oh, gee, it has four wheels. it must be a car maybe i should trade it at a car pe instead of something else pe. >> tech. >> that's painful. by the way, i bought the product. i would never buy the stock. >> kenny, you wanted to jump in there. >> part of that is just the fact that some of these stocks have been way overpriced. people got excited and high-growth names and exciting names have carried the market higher to kevin's point, when you get a selloff like that, those names will get hit the hardest, the quickest and maybist a painful lesson for people that got caught up in the excitement of it all and they need to be more

methodical. >> even the bitcoin is getting hit. everywhere you look, it's trauma speaking of tesla, we have news. phil lebeau joins us. >> a lot of people have been talking today about elon musk's april fool's tweet where he said, we've gone bankrupt, we avoided it by selling a massive number of easter eggs. it was clearly his attempt at some april fool's humor. well, after hearing or seeing much of commentary regarding whether or not that was a wise thing to do, he just issued a tweet saying, seriously, obviously i'm not going to do an april fool's joke about going bank bankwupt if i thought there was any chance it would actually happen sigh there you have it. ee long musk feeling a little frisky today not only commenting about people who don't think he should have issued that april fool's tweet also going after ntsb for criticizing tesla for releasing data regarding that model x

that's under investigation out in california. guys, back to you. >> thank you for that. kevin, your reaction to the latest tweet, all the tweets over the weekend from elon musk. is he sort of acting like early stage entrepreneur instead - >> i'm going to speculate he 100% regrets making that tweet here's a market that knows he's going to finance either with debt or equity you know, i -- look, i really admire the guy he's a remarkable entrepreneur but his board cannot be happy with that. i mean, if you're a fiduciary and we have to raise capital, we don't want to talk about bankruptcy with our name. >> at the same time, does it display a degree of confidence for him to be able to make the joke it's want like he came up with this we've been talking about their cash flow issues and had people talking about, you know, tesla is going to run out of money by the end of the year. >> the bears are all over this issue. the question is, is this something you should do?

there's another -- >> elon musk is never goinging to behave like a seasoned -- >> i get it. i'm okay with it let's draw the analogy, because i have another thing about the market today regarding what's happened with bezos and the president. do you think now having seen what's occurred in the last two months that it's a good idea if you're a ceo of a really large cap tech company to buy a newspaper? is that a -- do you think you could sit here as a journalist and also run for office and be allowed to talk about the market >> but he didn't do it with amazon he did it on its own. >> you're the board. you're the board and he says the, is it a wise idea is is it a good thing to do? buy a newspaper that throws, you know, axes at the president every weekend, is that a good idea just practically speaking? >> i get your point. i get your point. >> i think it goes to the fact that he just doesn't -- the rules don't apply to me. i'm going to do what i want. >> i'm a shareholder, i'm not so

happy. >> i think it's an arrogance. >> i know i have to give editorial control to the board of "the washington post. at the end of the day, it's not helping me as a shareholder. it's caught ire of a man who likes to read the paper, or have someone read it for him, i don't know, and i don't like that article -- >> to moving fast and -- >> it doesn't sound like a good idea to me. >> here's my question. they've come out as these great disrupters and built hugely us successful businesses. we're at the turning point are the same people who got us to this point do they all need to be cleared out to bring in corporate executive types to get -- >> i'm going to tell my ceo, buy sports teams, not newspapers that's the way i look at it. don't get involved in politics when you're running a large, public company. >> are these people still the right people for their companies? >> absolutely. i mean, these are the greatest entrepreneurs we've ever seen in america but they're learning the lesson today, after ten years of only going up, they're learning

the hard way when you lose 4% and 5% in an hour, something you did maybe has an affect on it. i'm just speculating here. i prefer we don't see added volatility from politics into my companies. that's the way i look at it. it's a personal opinion. >> but some of that you can't avoid. i mean, some of it you can, for sure. >> we can live and learn how many ceos is going to say, i want to buy the next newspaper going under? is that a good idea? >> created a lot of favor in washington by people going, you know what, jeff bezos backing of "the washington post" is the best thing that happened to this paper. they invested so much. but the point is, they see him now as a sort of benefactor of the struggling media you know how powerful the media is in washington. >> kelly, let's put together "the new york times" and "the washington post. what i learned in the last election is they do not represent america, okay? because i read those and went,

wow. and then i looked at what happened i'm not trying to be biased. the point is it adds vol to your company when you write nasty articles about a politician and not expect him to fight back >> kevin, quickly, back to what you said about tesla you love elon musk as an entrepreneur you bought the stock but you don't like the stock >> all through the process, as i watched this company develop with a remarkable product, it looked more and more and more like a car to me i can go as an investor, i do, and look at the market caps of volkswagen or general motors or anybody else that's public that trade 11 to 17 multiple. by the way, they're also making electric cars. then you take this company that makes one or two electric cars and says, that company is the same that makes -- we learned it makes 2,000 a month. supposed to make 5,000 okay, but they only make 2,000 versus a company that makes

10,000 and is worth the same $48 billion, $48 billion so, maybe, just maybe it walks like a duck, quacks like a duck. it's a car company and, oh, golly, it's going to trade down to the same multiple as a ge. that means the stock is going to 80 bucks >> that's right. but there was something about elon musk, something about -- the story was sexy, right? he was sexy. the idea was sexy. so i think the market got caught up with itself. >> it's still incredibly expensive. it's $255. >> it's very expensive >> we're through the 200 day. >> i would say 2514, the level in july of 2015 which is where it should find some support. >> 25.14, we're at 25.74 right now. thank you for that we'll see more of kevin throughout the show. for now, consumer discretionary is the worst performing s&p sector today let's get to seema modi.

>> all 11 s&p 500 sectors are down on the day. ten losing more than 1% and on pace to close in correction territory. the key laggard, consumer discretionary led by auto parts retailers which have been under pressure on worries that am simplon would disrupt their industry speaking of amazon, since its highest close on march 12th, it's lost $112 billion in market cap. lower today as it continues to be caught in the line of fire from president trump shares down more than 5%, kelly. >> seema, thank you very much. seema modi amazon still down more than 5% tesla we showed a moment ago a little less than 5%. that was hit a little worse this morning as well. >> interesting in terms of the sector moves today last week all of the sectors were higher, last week all low it's very broad. we talked about the focus over the last couple of weeks about tech and financials. clearly both are suffering but they're not the worst. that is worth taking note on

similarly with the financial moves. yes, banks are down 2%, 3% today. yields haven't moved that much today. it's just a broad selloff of taking profits across the board. >> if anything, yields have softened up. the ten-year was around 2.72 the last i saw dow down 589 points. the lows we're down more than 730, i think, so we're off those levels still 2.4% drop. the nasdaq still down 3% today, down 211 points. the president took to twitter to sound off on amazon this morning just after the markets opened he tweeted, only fools or worse are saying that our money losing post office makes money with amazon they lose a fortune and this will be changed. also our fully paying tax retailers are closing stores all over the country not a level playing field. now, the president's tweet this morning just one in a series of tweets he has lobbed against amazon over the last couple of days the stock down 5.5% right now. joining us for more on this, pennsylvania governor ed rendell

and liz dunn, here on set with us thank you for joining us governor, let me begin with you. listen, this the -- we had senator rubio tweeting about amazon as well, referencing the fact that mall vacancies are at a six-year high. the president piling on this morning. your home state has a couple of cities vying to become its next headquarters so, how much trouble do you think amazon is in here? >> i don't think there are in any significant trouble. the president, as usual, has his facts wrong. he said over the weekend that amazon paid little state or local taxes. that may have been true in the first five years of its birth when there was the internet moratorium against sale tax but 45 out of 50 states amazon pays the same sales tax as infrastructure retailers do. if you impose the internet sales tax on those that don't have a physical presence in states, you'd actually be benefiting

amazon because they're a third-party sales tax collector business would go up dramatically it's not hurting amazon's bottom line look, the president of the united states can do just so much and if he renegotiates a deal with the post officeand raises the charge on amazon, not only does that raise the charge on small businesses, but then fedex and u.p.s. will raise their prices and that will further hurt small business. what's the president doing here? it makes no sense at all look, this is all driven by the fact he doesn't like "the washington post. that's not a responsible way for any president to act >> liz, do you think it's down to that, he doesn't like "the washington post," or is there a fair reason for him to be going off on amazon to the fact that the company is destroying jobs in the retail sector le. >> unfortunately, i think it has a lot to do with the fact he doesn't like "the washington post." your last guest sat here and stalked about, you know, perhaps

jeff bezos shouldn't have purchased "the washington post." i think that's kind of -- you can't have it both ways, right conflicts of interest cut both ways and i think the president is taking up a fight with "the washington post" against amazon. and i don't think it's appropriate and his facts aren't right. they are paying taxes to governor rendell's point they are paying taxes in all states that collect sales tax. they're paying those 45 states they're also paying federal, state and local taxes as a corporation. and the usps, post office, is saying we make money with amazon i don't know if there's much o an argument to be made the argument he's making doesn't have a lot of teeth. >> we have this article, the journal pointing out mall vak can'tcies are at a 6% high that's one thing senator rubio point out and what amazon plays in that. you cover retail what do you see there? >> i think amazon is absolutely

a factor it's one factor. i think there's quite a bit to be said that the retailers themselves have been complacent about products and offerings they've opened too many stores in some ways they've been irresponsible with financing a lot of mall vacancies have to do with overgrowth and lack of innovation from the retail companies. amazon certainly has been an accelerant they made it more difficult for them to operate but it's not all amazon. >> governor, what would be your advice to jeff bezos on how best to reply to the president's latest tweets? >> i would just make this point almost as directly as liz made there are absolutely correct points to virtually everything the president has said why would the post office lie? they do make money on their deal with amazon. where they're losing money is on things that have nothing to do with amazon. have everything to do with the internet and, look, the president shouldn't be doing this. he says he's the best friend small business has ever had.

he wants to drive up prices on small businesses look, retailers, i agree with liz, some of the retailers are starting to get smart and fight back and they're putting experiences in the mall. one of our malls in suburban philadelphia, they've put a legoland and it has all these pictures of the great philadelphia buildings and historic buildings people are flocking to the mall. >> shouldn't you be thanking amazon for that? what was going to catalyze all these malls and retailers for better experience? i rarely hear customers complain about amazon maybe it's doing something better for competition. >> i agree i think the bitterness was the first five years when there was an internet moratorium on sales tax. that's over with and now they're paying they're fair share of sales tax. i think you're right i think the malls will fight back i think they can fight back effectively. every kid in philadelphia wants to go to that legoland.

>> the struggle against online retailers, is there a sense a little protection from the government would be called for, whether we talk about that now as industries like facebook or whatever developed so much that a bit of regulation is needed? is that needed on amazon or not really >> i think that the point about them not paying their fair share of tax historically, that was certainly -- you know, that was a competitive advantage for them and -- a little competitive mode that allowed them to build a business without paying sales tax. i absolutely agree with the fact that, you know, there's been -- there have been laws enacted to make them pay their fair share but i think protection for retail, which is a struggling industry, i don't know that's in the best interest of consumers fran frankly, i disagree with the idea that amazon is putting people out of jobs because they're also creating jobs there's reporting that as malls

close, distribution centers are growing. there are jobs growing and being created as a result of amazon. i think retailers need to focus on what is their offer do they have the right size fleet to, you know, service their business and customers and how can they integrate with their online businesses to most effectively serve their customers? >> amazon is down about 6% retail down about 3% we'll leave it at that, governor thank you for joining us >> mr. bezos is listening, tell him we would love those 50,000 jobs in pittsburgh. >> see, you just want the jobs liz dunn and ed rendell, appreciate you joining us. >> also the one-year chart there, amazon is still up 53% or so. >> healthy. >> a bit of a pullback but not in the grand scheme of things. coming up, national trade council peter navarro will join us on "closing bell" around 4:35 p.m., in about an hour or so don't miss that interview with peter navarro coming up. dow heading back toward

session lows we're not quite there yet but shedding 630 points right now. the s&p with sectors on the screen is down 75. and the outperformer, if you want to call it that, utilities and telecom still down about 1.3% to 1.7% consumer discretionary and tech. discretionary hit by netflix and amazon they're down in the range of 3% to 3.5%. >> oil is slipping down quite a bit and gold moving in the other direction, up 1.4% a safe haven trade. bob pisani with an update on the latest movement in the market. >> the important thing is we are off the lows, wilf, but not by much the s&p 500, 2555 was our low. notable decline. the whole market fell apart around 11:00 when we saw the 0 200-day average get breached

we saw tech and f.a.n.g. stocks. you can see they're down again apple off the lows these are all off their lows but most are in correction territory. in the case of facebook, if you take a look, down about 20%. that's in what we would normally call bear market territory the full screen. facebook down 20%. apple down 9%. apple only down 9% i think the important thing is the correction is a little broader than this. we need to look at the fact that we see bank stocks, for example, 10% off the recent highs technology we mentioned. industrials lso, consumer discretionary. that's where amazon and netflix is so, wide swaths of the market are now in correction territory. on top of that, there's stuff even deeper down energy stocks never bounced despite the fact that oil was moving towards $65, $66 throughout the last several

weeks. energy is down about 16% material stocks are weak health care is down 14%. consumer staples even utility, which we considered to be a defensive name is down 12%. the correction we're seeing is very broad and should be thought of as more than just technology stocks finally, we're having another 2% move today in the s&p 500. you know we've had seven 2% moves this year. you know how many we had last year zero so, in just the first quarter we've had seven 2% moves none last year 2016, 2015, 2014 the last time we had anything close to this was 2011 you might remember, that was the european banking crisis. with we had 35 2% moves. we're close to what we were doing back in 2011 seems like a long, long time ago. the volatility is back that's the bottom line here.

back to you. >> thank you we'll check back in shortly. bob pa san i with the dow down 610 points joining our "closing bell exchange," chris joins us, tim anderson from mmd partners and very own rick santelli welcome to you all you're here with us at post nine tim, we'll start with you as we watch the action with less than half an hour to go into the close, we're starting off the month and the week and the quarter in a pretty weak fashion. >> i think it's likely a lot of portfolio managers got caught off-balance in the first quarter when we hit that big selloff in february and it's possible they just want to get ahead of this right from the very beginning of the quarter. and not all of a sudden say we're down 3%, i haven't done anything yet so, on top of that, it turned into a little bit of a perfect storm for tech with, you know, apple announcing midday they're not going to use intel's chips

in their macs going forward. they're going to make their own. we know the issue on facebook and some social media data mining space even though the sharp declines in netflix and amazon are extending into early this week, those stocks are up sharply year-to-date. >> chris, it's clear, at different day, it's different sectors, it's clear the higher pe growth stocks are the ones that suffered the most in recent weeks. telecom is more defensive names. is that a switch you think can continue for a little longer, still? >> i think it could be an inflection point in the market seven years right now where growth stocks, higher pe stocks have outperformed value stocks at some point that has to come back to equilibrium. this could be the point, especially as we see tech names selling off. those tech names that don't have a lot of profit underlying them.

>> your intel is selling offer today. >> well, that -- that -- that's a great point. intel sold off but that's a great buying opportunity intel is one of the tech stocks that has earnings. selling 15 times earning. >> are those under threat? >> it's under threat but the market is overdoing it intel only gets less than 3% of revenue from apple it's not going to occur until 2020 if it does occur. the stock is off 6% today. talk about overblown in is a great buying opportunity to get into a stock with some profits. >> you know, rick, we're looking around for reasons on to explain the selloff. we talk about the president's tweets we know about trade policy what about the ism data this morning. you basically had key components going the wrong way. i think new orders were down employment was down and prices paid were up >> some of the components were down, at i think to levels that would make me nervous. you are correct. the one area many focused on and

i had quite a few e-mails on was prices paid. it was basically at the highest level in almost exactly seven years. but at this point it seems to me it's all up to friday's numbers. let's look at the lay of the land today you had 5s, 10s, 30s, within a basis points unchanged. we have some default curve steepening in the end, if you look at year-to-date chart of 10s, outside of the first three weeks of the year, we spent the entire of 2018, as much into the year as we are, all above last year's high yield close of 2.63 it's still a biased towards higher rates but we're certainly the credit markets take much of the nervousness in equities in stride but it will take something big, in my opinion, to spark life back into equities or get rates to rechallenge 3%. i can give you a bunch of those coming out this friday wages, participation rates, those are going to be

scrutinized. also we're looking at under 2% in first quarter gdp as recently as the 23rd of march it's now 1.8 and jumped up towards 2.4% from 2.4% to 2.8%, actually in my opinion, we need to see something tangible in a big macro frame. whether it's jobs, growth, retail sales, to spark the market back to life. otherwise, i still think you'll see it firm rates, no matter what the stock market does but i think it's going to remain in a very tight range. >> chris, we know you like the idea of rotation from growth into more defensive names. when we hfd thinks about the broader causes for this market selloff, some perhaps a little overdone, whether it's tariffs or facebook or something else? >> i think a lot are overdone because if you look at the underlying economy, the economy is still growing and growing well bull markets don't just die of old age. there has to be a catalyst to take them down i don't think tariffs is enough. >> like fed tightening

>> fed tightening but it's tightening in a measured way if we can't get the ten-year up above 3.00%. i don't think the market has to come crashing down i think we're taking a necessary breather and i think it's a great time to look for stocks that can put profits underneath you. >> tim, you remind us that we still have incredible performance since january in parts of the tech sector like amazon and like netflix. do you view this whole move on another day where we're down 600 points as putting us on a more sustainable path >> down 600 is hard to say it's a healthy selloff because it's a big number but we kind of live in a world of big numbers right now. i think when push comes to shove, it's the macro economy numbers are going to support the market i mean, even the prices paid number this morning that you mentioned earlier, i think that was actually a positive because it reinforces the wage growth number we saw last thursday from

the pce chain. and the market has been pining for wage growth for years. >> it wants the wage part. it doesn't just want the prices up, it wants the wages up, too. >> right we had wage growth in 17 of the 18 sectors in the ism report earlier this morning >> and you think that's exactly the kind of confidence they're looking for right now. is it possible they are reacting but it's just looking towards fed -- it's hard to even ask those questions because the yield on the ten-year hasn't budge. >> powell will testify later in the week i just think there's another thing that not too many people have mentioned i'm not saying he has said anything wrong or done anything wrong. the market always gets a little nervous when you have a new fed chair for the first month or so, the first three or four times that he speaks publicly. because the fed watchers just love to go over -- go --

overanalyze every single word that was said or wasn't said rick could probably speak to that more thoroughly. >> rick, we saw the dollar index, but if we look at pairings, like the dollar/yen, looks like today we're moving in the opposite direction is the yen about to set -- to break quite significantly higher >> you know, to me, if you hiel a gun to my head and said you have to have a position in dollar/yen, i would be short the dollar and long the yen. you take a look at the dollar chart, void of the dollar/yen, sideways activity. i don't expect much of the dollar index, it can't even get in positive territory. it can't even get within half of positive territory but it's treading water i would assume you'll see more of the same type of trade for the foreseeable future. >> rick, you think they're testing powell, like tim was saying >> i really like jay powell up

know how i feel about most fed officials. i don't think what we're seeing in the market can be contributed to him as a matter of fact, i've never seen so much confidence in a new fed chairperson even though we haven't had all that many over the last 30 years, most traders on the floor really like jay powell >> chris, banks have been weak but one financial stock you like >> sure. i like prudential. having it being released from the significant financial institutions list, that's just going to help it grow long term. i think it's selling at a great price. >> no worries about the accounting issues and pension checks unpaid and -- >> every company's going to have some hiccups the long-term fundamentals of prudential, i think it's good. >> thank you all very much sn

shares of tesla falling today. concerns mount over the safety of tesla's autopilot systems phil lebeau has been monitoring the situation and joins us for another update. >> it's not just about the autopilot situation and the investigation the ntsb is investigating and the back and forth between musk and them. but what they expect to see fro model 3 tesla numbers. they report at the end of quarter. we expect them some time later today, tomorrow or the next day after that here's what's at stake in terms of what investors are looking for. the guidance from tesla was model 3 production of 2500 vehicles per week by the end of the first quarter. there was a media report earlier saying mufk sent out an e-mail suggesting they hit a level of 2,000 per week last week we reached out to tesla and have not heard back most analysts expect the final production numbers for model 3 to come in from 1500 to 1700

vehicles per week. the target for model 3 in the end of the second quarter is for 5,000 vehicles per week. so, the second part of the story is whether or not tesla, if it doesn't make the production schedule it set, do they push back that 5,000 per week into the third quarter or further out, model 3 production is the key to cash flow generation for that company earlier today jeffries putting out a note saying there is a high probability that management and the board will take more drastic action in terms of guidance and on funding in terms of restoring future credibility. essentially saying, look, this is a wake-up call. one way or the other, we get good news on production or if it falls short, the board will step up and change things one last night as jeffries upgraded the stock to a hold, ron barron, the investor who's been extremely bullish regard d regarding his belief in tesla, he's out with a note today saying he's not changed his position at all when it comes to

investing in tesla. >> i was waiting to see if you said, he's selling everything. >> no. >> probably makes more sense he's sticking with his well-known position on that one. phil, stay with us phil lebeau there. joining us now -- sorry -- to discuss more about this -- >> no, no, go for it. >> kevin o'leary is back phil, you're with us as well >> i don't think it should be traded as a car company, per se, but clearly it's ate credibility issue. it's all about the "c" word and credibility on two front model 3 production the model 3 is the midprice tesla and producing that successfully and high quality and high volume is critical to justify this valuation of the company's stock. and so far it's not proven the

company can do that. back to the autopilot system the bet is, can you produce automatic pilot system or semiautonomous systems that allow the driver to disengage and expect the driver to quickly re-engage at a moment it's critical that's a big open question, too. i think the "c" word, credibility, is what's at stake right here >> kevin, you mentioned early are you bought the car. >> yes, i did. >> how much did you like the car and have you tried any of the other companies' electric vehicles, which you also made the valid point exist and so sometimes the valuation for tesla seems high >> i'm a believer that ultimately i'm safer in a car that's being controlled by technology so, i'm of the ilk that i'd rather be drivings with thousands of cars beside me talking to each other in a seamless network and that's coming now, which company is going to do this? waymo ordered 20,000le jaguar

cars if i could buy one of those and have that as an option instead of a tesla, i would look at that product. i believe, maybe it's perception only, they have as good or better technology. they can apparently go and drive completely hands-free in san francisco to the inch. >> it's ironic because the tesla people who love driving their teslas love it because they love to drive the cars. >> i like it to drive me. >> you're not interested -- you just like the technology >> look, i test drove it, kelly, and i said, i want it to drive me to my lake house while i'm sleeping in the back she said, that will never happen but it's as good as it's going to get right now even though the technology exists to do that on a straight open highway the point is, if you're looking at tesla thinking it's the only car company over the next decade that will offer this technology and this quality and style, i think you're veryi inwrong. i would like to have a jag with waymo technology but i don't have that option i assume i'm going to get it at the end of the day, have you to look at the context of this

company compete be with all the other offerings. maybe gm will catch up and get to 400 mile distance on their battery one day. it's want like they're the only company doing this, which is why i don't like the stock price. >> are the other companies catching up with tesla in terms of electric vehicle technology >> slowly. you know, i've been listening to this for the last three years. people saying, don't worry, more competitors are coming tesla won't have the field to itself three years later, if you ask somebody, are you interested in buying an electric car almost immediately they will say tesla. a few might mention the chevy bolt that's a completely different type of buyer looking at the bolt opposed to the tesla, model s, model x or model 3. so, yes, these vehicles are under development but we don't see a big flurry of them coming any time soon. it will probably be here in 2020, late 2019. we hear a lot of talk when we go to the auto shows. we're working on electric cars tesla has it out there

that's why they command so much of the mind share of the market when people say, i'm interested in electric cars. >> paul, quickly, you make the point that it's not even an electric car stock that's been the best performer in the last recent years. >> no, absolutely. the last -- the best performing car stock in the world, the last 2 1/2 years, has bennifen ferrai they don't have electric cars. they have wonderful cars but that stock is up 120% since the ipo in october 2015. put it this way. if you would have bought enough ferrari shares back then, you would be driving a ferrari now. >> have you driven a ferrari >> yes, i have frankly, they're very expensive go-karts as far as i'm concerned. the suspension is not good for my back. that's the way i look at it. there's a good example look at the multiple on ferrari and apply that to tesla and you have $100 stock. that's what's going to happen. but there is no -- i think the

bigger issue to ask every shareholder, why buy companies that make no money that have to finance even their debt with more debt or equity? why is that a good investment? why? isn't that a question we should all ask ourselves? or maybe these people that own this stock are going to have to learn a horrible lesson as to why this isn't a good example. >> they are learning a little lesson today with the stock down sharply. thank you very much for that i think we should be getting to test-drive more of these. >> you're the car guy. >> i couldn't fit in a ferrari, but i would happily try for an hour to test-drive. gold and silver are doing well and seema has more. >> this flight to safety theme is certainly playing out today with the dollar weaker take a look at gold and silver both higher by 1% to 2%. gold just saw its third positive quarter. the first time wooe've seen that since 2011

three positive quarters for gold since 2011 gold at $1,344 only one dow stock is higher and that's united health group as analysts speculate which player is next to be acquired following news that walmart is in discussions with humana. >> seema, thank you very much. humana up on -- we thought that would be the deal news of the day, right it was going to be, hey, this speculation about walmart/humana gets announced, this will be the big corporate story. instead, granted the market is coming back. >> some interesting takes on it. clearly, walmart has suffered along with the rest of the dow morgan stanley was out with a note outlining the positives, even for them to address this even if it's not an overnight positive only one stock that has been

positive all day on the dow and that is united health care, which is up 1.4%. >> so much consolidation across that space the question the journal was raising what the effect would be on hospitals if a company like walmart is trying to provide more of your health care or gaming up with one of the insurers not a lot of bright spots, at the dow is off its lows. >> only down 480 points. >> yeah, only down 480, about 2% how about financials hit hard today trading lower. around 2% or so, 2.25% last check. >> down more than 4% this year is there still opportunity for investors within that broader sector joining us is tom brown. thank you for joining us it's interesting to see the whole sector off to me year-to-date, quarter-to-date, given that clearly yields are still up from where we started the year they slipped a bit and volatility is up as well on both levels, thinking simply,

shouldn't we see these stocks gaining over the last three or four months instead of falling back >> we should be. some of them have. our portfolios are up so far this year. you know, there's a technical term among financial services investors for days like this that is it's fugly meaning it's ugly but a lot worse than that. >> financially ugly. >> financially ugly, yes, that's what we're talking about. >> what does that mean is that opportunity? >> i think it's an opportunity in fact, while i was waiting, i took the opportunity to buy some shares of a company. >> are we allowed to talk about that company >> sure. it's a consumer finance company, regional management. but another one i really like in this environment, bigger cap, is capital one. >> and the reason behind that? >> capital one is a leader in -- the digitalization of the world, let alone financial services capital one is a leader trading at a low double digit multiple i'm just very excited about it.

>> is that a threat both digitalization and some of these smaller names, are they a threat to the big six or so banks in the united states? or can they also harness the new digital era? >> i think -- i spent the first 30 years of my career complaining about the big banks losing and now what i see is the top three particularly, but let's call it the top ten, are really gaining deposit market share in terms of accounts. they are winning the retail banking battle that will become more important in this rising rate environment because smaller banks will need deposits and they'll have to pay up for them, which means their margins will compress. >> the biggest are getting bigger and better and payment systems to - >> they got bigger 30 years ago, for the last 30 years, but they didn't get bother, they got worse. now they're getting bigger through organic growth because they are better. >> address one threat people have point to for banks over the

last couple of weeks, which is libor, that has spiked quicker than some other domestic u.s. rates. is that bad for banks? which banks is it bad for, if so >> no. it's bad for tom brown because my mortgage is tied to the libor. >> you have an adjustable rate mortgage >> yes >> you own bank stocks and adjustable rate mortgage >> yes i run a hedge fund >> but it's not to be kerpd even for european banks, deutsche bank, things like that >> to be clear, i don't understand how we do libor anymore. it's a rate i can't figure out and, therefore, i'm concerned about ultimately how it's going to settle out. the prime lending rate we can understand banks set the prime lending rate >> i want to know if amy's comfortable with that adjustable rate mortgage. >> no, she's not, kelly. >> tom, they're wrapping us up of your top bapnks, which is yor

top pick >> bank of america. >> thank you very much >> thank you. read his banking weekly, if you can. >> i'm going to get added to that. >> you should have shared it with me before two years you could have shared it and you haven't. >> bertha coombs standing by. >> i'm wearing red it's red behind me on the wall i wanted to take a look at the nasdaq 100 heat map. we had a couple of stocks that edged grew the green a couple there trading higher. seagate has been one of the standouts. overall really a big decline when it comes to technology. chip stocks among the biggest losers intel is the worst performer in the nasdaq 100 on reports that apple may switch out on its macs in 2020 and not use intel chips anymore. analysts saying they thinks this is overdone. not as big a deal for intel. nvidia has been one of the big losers with all of these concerns about self-driving

cars it's one of the chipmakers that plays in that space. today biotech is also a big drag here on the nasdaq off about 5% for the large cap biotech firms. alkermes getting crushed, the fda rejecting its application for a depression drug. saying go back and do more research also alnylam seeing damage as well as a competitor looks to bring out a rare heart disease drug that could also eat into its market share so, those are some of the big momentum movers that are really dragging things lower, wilf, but it's definitely the technology that is the biggest drag overall because of those mega caps back over to you >> bertha, thank you very much for that we have got about 3:30 to go before the bell rings on the floor of the new york stock exchange and it's still a big selloff staring in the face, but

not quite as bad as two or three hours ago. we're down 465 points right now as we speak on the dow at the lows of the day we were down 3%. we're down about 2% right now. let's take a look at the intraday chart the nasdaq has been the laggard so let's use the nasdaq. didn't open too soft sold off pretty steadily until 12:00. lunchtime we got an hour or two of reprieve and have improved steadily over the last hour into the close. we are near sort of midrange of the day. we're not near the bottom. a look at the s&p sectors today. all the focus has been on tech with the likes of amazon and tesla trading down but, in fact, tech's not really the worst performer. there it is for you. we have utilities, telecom, some boring sectors outperforming but tech is not bottom consumer discretionary is. financials having a tough day as well it's pretty broad selling acrosses the day -- across the

board. let's take a look at sectors year to date only one stays in positive territory for the year, and that is tech. only slightly higher a lot of selling elsewhere, including te banks have been a seller that is despite decent performance in the ten-year bond when we talk about year-to-date. if we look at the yield on the ten-year year to date, its higher from where it started the year albeit it's been slipping. bob pisani joins me with a summary of today there's a bit of volume to speak of, which is a little concern. >> people have been asking me, what's going on. i think it's easy to summarize this the markets like talking about tax cuts it likes talking about global economic growth. it likes talking about earnings going up, which is what we were obsessed with throughout the first quarter and the first part of this year the market does not like talking about trade wars, tariffs,

higher deficits, for example, issues around individual companies and high valuations. so, the tone of the conversation has changed. we're in areas the market isn't particularly comfortable with. one thing that's important to understand is while tech has the highest valuation, this is not just a tech selloff. we're deleveraging across the board. all major sectors are down about 10% right now. i don't want to put too much of an emphasis on technology. >> if we talk about some of the other sectors, oil prices, that's not looking very attractive today gloe gold is up that's a worrying signal you can talk about tech is not too bad but worse it's so broad and a risk-off sentiment. >> that's a good point energy is a good example energy throughout the year, we've seen oil moving up to $65, $66 and energy was never bought. it was never part of the overall rally we saw

nobody had a lot of confidence in oil now that's part of the decline energy is one of the big decliners. that's down 13%, 14%. >> bob, there is the bell. lives only ringing it and at the hill is money smart. we're down 472 points on the dow so we're off those lows which is close to 700 points. still a big selloff for the first trading day of the quarter. kelly with the second hour >> thank you, wilf welcome to the "closing bell." i'm kelly evans. we were down more than 700 points but closing with a decline of 460 a lot better than it could have been look at the s&p and the nasdaq the s&p down about 2.25% around 60 points to 2581 the closing level for the dow, by the way, 23,640

over in the nasdaq, down 2.75% a brutal day for a lot of big tech names the nasdaq closing down to 6870. the russell down 2.5% to 1492. the volatility gauge, the vix was up above 25. it's come back a little bit. transports sold off quite hard today as well. our market pros are standing by to monitor the moves for us. bertha coombs in the nasdaq watching some of the tech wreck again up there bob pisani on the floor of the nyse >> the pain train is a phrase to describe what trade would cause the greatest difficulty. traders were primed once we broke the 200-day moving average. i don't think they were primed to see a modest rallygoing int the close we -- i want to

emphasize the breadth of the decline. we have emphasized technology because of its heavy weighting and because much of the earnings momentum is in technology stocks if you look at the big dow movers, you look at nike, which is now down about 10% from its recent highs we saw. 3m, another company, $259 in january. you could see it's down almost 20% from its highs home depot is another stock. was $207 a few weeks ago that's at $172 goldman sachs was probably $275 a few weeks ago and it's down significantly. there's a 52-week low. exxonmobil never participated in any of the rally throughout this year etf movers, again, very broad swaths biotech down 4%. semiconductor, there's a tech group, obviously oil and gas exploration down 3%. arca, the airline index, down 3%

home builders down 3%. you can see how broad the declines are i want to note we have now hit correction territory for most of the major sectors in the s&p 500. financials down 10%. tech down 10%. industrials, consumer discretionary including amazon and netflix. you can see what i'm talking about here these are the biggest sectors we're talking about. smaller sectors like energy and materials, they fared even worse. energy is down 16%, 17%. materials, health care, consumer staples. yes, even utilities which everyone says is a defensive group and doing better if you just look at it from where it was at its highs, down about 12%. the issues out there, we have talked about, everyone was enamored with tax cuts and earnings growth and now the tone has shifted to talk about trade tensions and tariffs, social media issues around facebook, issues with individual companies like twitter, amazon, driverless

cars has impacted nvidia, tesla as well. and overall valuations are some sectors it, but particularly around technology and semiconductors the conversation has changed from the end of last year and the beginning of the first quarter. back to you. >> bob, thank you. let's get over to bertha coombs with a look at where the most damage was seen today. >> the nasdaq closing down 10% from its recent highs. sort of the third time we've seen it this year that it's moved into the correction territory. however, it's the first time they closed there since 2016 we've seen a broad selloff in the tech sector. biotech a big drag today as well a lot of disappointments there when you look at the large cap tech, the big names that have been the momentum movers, that have moved us to the upside are now all in correction territory. off about 15% with its highs facebook down more than 20% in bear market territory. netflix, for example, still a

big outperformer year to date, up 40% when you add up the declines and the negative year-to-date returns now on facebook, on apple, on alphabet, they are really offsetting the gains we have seen so far in terms of point impact from amazon finally, i wanted to look at tesla. tesla hitting a one-year low on pretty strong volume that stock getting really shellacked today now also as well in bear market territory after some controversial tweets and concerns about their ability to meet production levels kelly? >> thank you, bertha joining me are cnbc senior market reporter, dominic chu >> it's been a long time. >> mike and i go, maybe it will be a quiet week next week. instead, you come in, sir. and we are down 700. >> we work in the news business. i'm happy to be here on a day when we have such eventful stuff

going on >> eventful? >> it's a great time to be on the "closing bell. and the idea we could be here in the most important last hour of trading, wall-to-wall coverage, no commercial breaks -- >> i hope they paid you handsomely for this promo. well done. he's next to kevin o'leary, back with us, and managing part at douglas elaine and associates. glad to have you on board. let's start with you what do you think about the action today we finally turn the page on the first quarter only for it to start in the way we ended it. >> the amount of uncertainty out there. the market isn't used to this. we had 18 months of goldilocks, february and market is down 10%. i think the market is looking for earnings earnings are coming. we need some direction we can talk about tax cuts and cash flow and talk about growth rate but until we see that and when the banks lead us off, that will be a good indication. i'm bullish the banks will do well >> everyone is bullish

i haven't heard a single person come up and say, i think the earnings are going to disappointment they all go, they're going to be great. no way expectations are high enough they'll be awesome, calm down the market. >> i agree with all that but what are you seeing here, and i think the debate that rages on days like today when individual stocks move down 5% is, what multiple should i pay for those earnings which we never discuss for almost eight years whatever the market wanted to pay, it was worth it because everybody was willing to stay with an increasing expansion of price ratios which is not the case today whether you call it uncertainty or maybe it peaked out or maybe what's occurring is the fact that there's a differentiation between risk and return. >> here's my question, sarat has that price basically people are paying been rising across the board? yes, of course, the overall market has gotten a little more expensive, but a lot of times we've been talking about tesla or netflix and going, man, they just -- the multiple just keeps

expanding. but there are a lot of stocks that got left behind in that, too. >> i think if you look at those three stocks, their earnings are so low comparedto where their price is each one has their own individual story tesla, look at the credit markets. that's going to tell you what the equity will do given where we are in the economic cycle and one could argue we're a year or two away from a slowdown. if you look at your pe ratios, they'll comprescompress. >> why do you say that because the best of times for earnings, people are looking around the corner and saying, as good as it is right now, it's only going to get worse? >> i don't think it will get better and i think you have to be selective as to which company will grow over the next period we've had such a great period of liquidi liquidity. that's coming to an interest interest rates are moving up and the market is suspecting maybe we get a flat yield curve which could -- they'll shoot and then ask questions later stock stocks like the teslas of

the world are going to get hurt. >> dom, we saw the yield curve is flattest since 2007 unlike any comparison to 2007. >> things are so different now there's no doubt we are not nearly in the same kind of bubble or crisis situation we were in '08 to '09 with the prelude to it back in '07. the idea is if you look at the markets the way they are developing, things have been constructive over the last two years we've had this unprecedented level of market calm where people kept paying higher prices for the same assets, regardless of what you thought of them. now traderss are left wondering, what happens what's the catalyst for potential downside not that it's going to happen but what hapsz if people buy the dip like they do on a day like today where the dow is down 700 at the lows and recovers because people buy in. what happens if they lose money a week or two now? >> even going back to the original question, what is the reason why we're down so much

today? is it because -- we had a couple tweets around the time the market opened. in the premarket it looked quiet. 9:08 the president talked about mexico making a fortune and improvement to nafta and then he tweets about post office and amazon. amazon - >> i don't think the tweets move the market anymore used to be you got a tweet on your company like boeing and you did lose 3%. now the market understands the tonality of this administration, what the president does with twitter. it's his own news feed he does what he wants. i don't think it creates policy. that's what really matters this is strictly about how much do you want to pay for earnings. i'll note if you look at the problem we have in market cap-weighted indices, s&p is a market cap-weighted indices. the f.a.n.g. stocks are 15% of that market company. so, they don't have much earnings and so when we correct

5%, it really slams that index down my bet is, if you want to make a good return for the rest of the year, you go back to boring names that actually return capital. >> i think one of the things that could be the downside to this market, if earnings don't come out where we expect them, we are going to see a selloff. >> what are you holding right now, by the way? >> we are about 20% in financials i like the large caps, bank of america, jpmorgan, citi or morgan stanley -- >> regardless of interest rates? >> i think they help the short term has gone up and a lot are making money with cash sitting on their balance sheet any activity in m&a, any business activity. business activity is increasing so they'll do well and they sell at 14 times earnings. >> what's interesting about that point is, kelly brought it up, the yield curve is the flattest it's been in a while it used to be about profit margins for banks. you needed the short end or the long end to be wide apart so those profit margins would be big. now they're compressing. there should be a reason why banks aren't performing well yet

they might be. >> don't forget they're getting all this money and not giving you interest rates to hold them. if you go to bank of america and put money there, you're getting 0.1%, unless you ask to put money in a special fund. >> you say you're 20% in fn financials >> we're also overweight them industrials with airlines and home product companies. >> like home depot >> lowe's -- >> you're picking lowe's over home depot >> we are. cheaper, they have - >> you can get a bargain on home depot right now. >> i think you can get a bargain on both those. those are activities that will have secular demand because the consumer has money they want to put money back into their home and i like those type of companies that are going to grow their earnings no matter what happens. >> those are the fundamentals. let's talk about technicals for a moment you heard kenny talk about it last hour. a lot of traders focus on the technical levels the market broke through this afternoon eric chimi with a look at that.

>> the 200-day moving average, that's the big story of the day. you heard bob talk about it many times how we broke through from that level it's an old-school thing the chart technicians back in the day they did it by hand. it represents roughly one year it's a way for traders to figure out the trend is your friend if you're above that moving average, the trend is in your favorite if we can get this loaded i'll show you where we are on the s&p 500 relative to the 200-day moving average you see this line below. that's the 200-day moving average. that's where we hit that level that's going on today. that's the big story the last time we were there, election day 2016. we had that big bounce low and then we came back and then the time before that, you can see earlier in 2016 we had another bounce we actually haven't gone below the 200-day moving average at all in the last couple of years. that's why it's a big deal for traders. another thing i want to point out, the 50-day moving average for the first time in a while it's turning negative.

you might not be able to see that right here. if you go into the charts you'll see the 50-day has turned negative now i want to move forward to today's trading action what you saw in the move around lunchtime today where we saw this big move. you can see it right here. look at that yellow line coming in right here that's -- that's the 200-day moving average we went there right before noon and dropped suddenly after bouncing above it a few times. once you went below, you couldn't come back up. we tried to get above it, we tried to get above it, we couldn't that line used to be support now it's resistance. one thing traders told me, these moves come in instantly now because of electronic trading. all these computer models, they can instantly react as soon as you hit that average back on you're day you had to look on your computer and call to make that trade now the response times are much quicker. back to you, kelly >> eric, thank you eric chimi there if you want to take the big

picture fundamental view and you say, if this is how the machines or even traders are trading it, is this opportunity? do these numbers matter? >> when the algos take over, they sell, sell, sell. oil was down and transports were down that doesn't normally correlate. the ten-year went up banks went down. this is when you look through the model and you say, okay, what do i want to own at these points let me start dollar cost averaging in good companies -- bank of america is below 30 again. nothing happened it's down 15%. i think from its peak, that's where you look. >> dom, what do you think the importance is? >> the importance for the average investor and those long in the market, own stocks but are not long through leverage, that's the important thing, algorithmic trading is important. it's not going to drive your fundamental investment thesis. you shouldn't worry about the fact there may be a flash crash here or there. >> the 200-day has been around a long time before the algorithms

keyed onto it. >> they say, if it happens do this and they do it thousands of different ways if you own the market -- if you feel as though a stock is great and has good fundamentals, good earnings power and everything else, it shouldn't matter the fact the stock has gone down 2%, 3% in a week if you own it, not exposed to a margin call, exposed to the fact you could be washed out a position, you -- i noticed -- i spoke to a lot of traders today. no one ever said the worried panic. everyone said it was the complete opposite on a day when the dow was down some 750 points. >> europe didn't participate we don't know sovereign funds how they'll react to this. i'll be intrigued to see how the new ipo, another company that makes no money, spotify, prices in this environment. that is a wild card extraordinaire. >> dropbox had a great debut coming amid some horrible

sessions in technology so, it shows -- granted, this is different. spotify is doing something no one else has. >> they have a low end of a 9 billion market cap valuation to 25 you can drive the entire transport sector through that. so, i'll be interested to see how that happens. >> the private market price has gone anywhere from 50 to 140. >> these stocks don't have a lot of float it's very hard to -- >> oh, sellers only. >> they're not an etf yet so they're different from the model. >> underwriters will be there to support them. >> i'm assuming we'll get a market maker involved. what i've been waiting for in this market is who is the next sector to lead us? i've been intrigued by energy. cash flows are the lowest of any sector and earnings, i think, will be spectacular and yet you can't catch a bid there. >> what do you think might be the leadership >> energy is a compelling spot the idea you can grow earnings triple digit right now because the comparables are easy it was so bad last year.

they see that pick up and oil prices are stable. >> i think financials and transports will lead it. >> really? >> yes. >> you like those airlines. >> i really do. >> thanks for joining us we've got a market flash to get to bill griffeth joins us what's going on? >> if you have a chart there, i would invite you to take a look at the chart comparing the dollar to the mexican peso peso coming back today there's a report out there on bloomberg that says that the president would like to see a nafta deal in place in two weeks. he's pushing for a deadline of some kind. as you know, kelly, you know, he has said in recent times that what he would like to see in that nafta deal is a provision where the mexican government pays for the wall. but that's -- not how the market is taking it because we're seeing that come back. and the peso on this word that the president would like to see nafta renegotiated and completed in two weeks we'll see. >> yeah, that's a tall order bill, thank you. mr. griffeth back at

headquarters. more news on the president from eamon javers down in washington. >> reporter: we have an official readout on the president's meeting with larry kudlow in the oval office. it was the first meeting with larry kudlow want a whole lot of news in this official readout but they say the president is glad to have director kudlow on board following decades of experience in both the private and public sectors, including at the white house under president reagan they go on in the readout here to cite a number of economic statistics, underscoring how strong the white house sees the economy being at the moment. they don't say, however, what was discussed in this meeting. they don't say whether they talked about today's market selloff or some trade worries that have been affecting the market throughout the afternoon that you guys have been talking about. still, larry kudlow's first official meeting with the president in the oval office as national economic council director has now concluded. >> eamon, i like the whiskers. >> reporter: thank you we all made bad decisions on

spring break. >> i think it looks pretty good. i don't know if that came up in their discussions at the white house. we'll have to ask larry separately. >> reporter: i doubt it did. >> good to see you. weakness in the semiconductors helped drag the tech sector lower. it wasn't just f.a.n.g.s seema modi has more. >> dissecting today's move in technology, widespread fear among analysts over the trump administration possibly unveiling a list of new tariffs that will negatively impact the tech sector, specifically those semiconductor names. if you take a look at the charts, weakness in chip stocks was a major theme in today's trade. separately a report that apple is ditching intel as one of its suppliers for the mac in 2020 has sent intel shares down 6% in today's trade. another notable mover is nvidia. wells fargo put out a note this morning saying the fall and oint

ether, the cryptocurrency, could fall worries over trade, of course but also the specific report on the impact cryptocurrencies are having on semiconductors, something analysts were talking about today as well. kel kelly? >> thank you, seema. joining us by phone with more on today's action is steve grasso from stuart frankel, because he's on a beach somewhere. i told you you would end up trading on the beach what did you just sell >> i actually did last week so i could relax on the beach but i sold square, ali alibaba and -- obviously, bitcoin, blockchain has been under pressure. let's think about what's in the bull's eye in the target zone for this marketplace it's financials, it's tech, it's china-related. look at square

then alibaba, which is anything china related and anything large cap tech is in focus so, that's the reason why these things are trading lower i wanted to clear the deck, so to speak, clear the deck and see where it is when i come back the bears only have a week or so to really dig into this market once earnings start, those taxes will flow through eps and you'll find out wall street analysts have underestimated what tailwind the corporate tax wind is going to be for the u.s. global - >> we're chuckling here. i was giving the crew a hard time how excited they were for earnings i want to bring them in. sarat, how do you know when it's time to sell steve mentioned he wanted to avoid parts of the market out out of favor what do you look for >> i'm looking for negative news trade wars are going on. china comes back, we -- now we'll come back. this is all negotiation. at the end of the day, yes, this

is -- >> this is when you want to sell >> this is when you want to buy. you could sell now we could have another 5% or so%. but if you're a long-term investor, this is your opportunity to get into some really good companies. >> you'd be buying what steve is selling? >> i wouldn't buy those companies because those aren't the ones i like but i do like some semiconductors. intel at these prices, i would even buy qualcomm at these prices when you look at long-term growth -- semiconductors as a whole have had fluff because of the consolidation but that came out once broadcom wasn't allowed to buy qualcomm. but they're making earnings, 3%, 4% dividend. >> same question, how do you know when it's time to sell? >> i'm going to watch tomorrow what happens to this 200-day i'm not a big technical guy but i do watch those averages. i look at it and say we pierced it today, came back above it which is healthy if it goes down tomorrow and stays below the 200 day, that signals another 5%.

>> i think we closed below it on the s&p. >> that's not great. if you don't close at the low of the day, usually that gives you some relief with the exception i'm nervous europe follows suit on the downside. i'm kind of feeling, there's another 5% down here probably led by more selling in the f.a.n.g.s and everything else. then it's going to start to get interesting because when you can get close to a 4% yield on a large cap dow or s&p stock, regardless of the sector, that's my shopping list it's full of those big, fat, juicy dividend stocks. i'm just waiting they traded down today, too. i'll be buying them and i just don't know when yet. i'm not in a rush. and i raised a lot of cash. >> one of the phrases we've heard today and the last couple of weeks is a buyer's strike no one is showing up to buy these stocks. >> it's something sarat mentioned earlier, this idea

that liquidity is not there. some of the individual sectors in etfs had an individual volume trading day. you asked about whether there's a sign out there that people could be wanting to get out in droves what we want to see is whether or not there is a downside move, a violation of the trend and it happens on heavier volume. we have not seen that just yet. >> steve grasso, before we let you get back to spring break, and we appreciate you joining us mention a few things you're selling, so is there anything you're buying on your list >> i am a professional day-to-day trader. when i'm looking at square over 180% profit in square, i had about a 50% profit in alibaba, about 45% in avis/budget i'm looking for the pressure that kevin just talked about i'm looking for 5%, so% more in the next couple of days you want to watch that february 9th

low, 2532. if you market can't hold that, it gets really, really squishy and really interesting for the longer term investor that's when you want to start gobbling up financials, consumer discretionary and your large cap tech that's when you'll get bargains, not now. >> steve, thank you. 2532 he said and we're at 2581 on the close today mr. grasso joining us from stuart frankel coming up, we have national trade council director peter navarro. he'll join us in a couple minutes. he'll talk about tariffs we'll try to figure out about the market, what the president makes of it, amazon. stay tuned for that. the home elder etf falling 4% but american homeowners are sitting on a record amount of tapable home equity. diana olick with those details. >> reporter: not only did we see the biggest jump in home equity ever but now at the highest level of equity cash and you can

thank fast rising home prices. the amount of tapable home equity hit a collective $5.4 trillion meaning the homeowner would still have 20% equity in the home after they cashed out that's three times what homeowners had during the recession and 10% more than at the peak of the last housing boom it rose by $735 billion last year all these numbers courtesy of black knight now, as with everything in real estate, home equity varies depending on location. californians held 39% of all tapable equity in the country. seattle and las vegas saw huge jumps as did the new york city metro area, up 13% last year the average new york city borrower has just over $200,000 available for the asking nothing compared to san jose, though, where borrowers can pull out over $600,000 on average the question is, will they today's borrowers are very conservative but three-quarters have tapable equity with high

credit scores. it would be pretty easy to do. home equity lines of credit are expected to rise as borrowers take money out to remodel rather than buy a move-up home because today's housing market is very competitive and very pricey. kelly? >> thank you diana olick. shares of hd and lowe's sunk today. could this give the home equity system a boost joining us is alan, home analyst at btig. thank you for joining us home depot down 3% i think it's down 15% from the recent highs lowe's down as well. is any of this fundamentally justified? >> on the surface both home depot and lowe's would be beneficiaries because through an increase in home equity lines of credit, this would be unlocking capital that's presently tied up in liquid assets of -- and that base would be transferred into capital which would be in the form of discretionary spending one would have to believe home

depot and lowe's would be beneficiaries of that. >> one would believe, but look at the shares. so, home depot is down 3% today. down 15% from its recent highs. any reason this selloff is justified? >> i think selloff for both of these stocks -- certainly, these are highly cyclical names. with the fed committed to raising rates at least three times this year and three times next year, the fear on the part of the investment community is that higher interest rates will slow down the housing market and the housing market, of course, is critical for both of these names. >> by the way, do you have a preference for one versus the other right now? >> we do prefer home depot over lowe's tha they're a much more sound company, more consistent company, their comps have exceeded lowe's for many, many quarters in a row. if we were forced to choose one of the two, we would go with home depot

but we have buys on both names. >> just doing that for sarat's sake thank you for joining us here's a quick look at how we finished today on wall street not as bad as it could have been the dow down more than 700 points at the lows but only closed down, only, about 450 458. still nearly a 2% drop that was the best performer relatively speaking. the s&p down about 2.25% the russell down nearly 2.5% nasdaq down 2.75%. a lot of weakness in the big cap tech names. apple was down 1% but "fast money" jim is staying bullish. he says apple is the one tech stock that could lead us out of this correction. >> apple is the highest weighting of all the etfs. there's other answers, please.

>> here to discuss this "fast money" traders guy adami and dan nathan welcome to you both. pretty crazy day for everything that's just happened guy, we'll just start with you tech did get hit hard. apple maybe not so much. what are your thoughts >> apple maybe not so much this is my thoughts. if these tariffs are going to happen, i think the bull's-eye is firmly on the back of technology i think that's what you're seeing now valuations don't matter if the market's going to sell indiscriminately intel we talked about a week ago looking like it was going to $65 to $70 a share you had the apple news today and it's down 5% my short answer is you can't look at valuations in this type of environment i think the crosshairs in terms of tariffs are firmly on the back of tech >> dan, you agree? >> it's interesting what jim had to say in the "half time" and i think in 2016 or '17 that might have been correct. maybe not so much in 2018.

maybe apple hasn't been hit as hard as facebook, amazon or google because they don't have the dramatic growth expectations sales are expected to grow about 10% this year. that's going to be the fastest sales growth they've had in a few years. to me, this is a company that has much less leverage than, say, some of those other internet names growing 20%, 30% a year in sales. to me, apple, yeah, it's a safe pick but to me if the market stays this volatile in the near term, that stock's going back to 150, which is mid-february low, or that february 9th low, in my opinion. >> do you think, before we go, guy, this is the end of f.a.n.g. just in the sense we don't talk about it as a group anymore? facebook and google go their own way, amazon and netflix go their own way? >> i think we'll talk about it for a long time. each of them have a very unique story. obviously, the facebook story we've talked about for a number of weeks now look, netflix is its own story i'm surprised netflix is seeing the weakness, at i can understand given its

environment. the test for netflix will come in the form of the quarter which report in the next couple of weeks. google, by the way, and brian kelly mentions this all the time, if you don't like facebook the same reasons you shouldn't like google. quite frankly, google probably has the same -- maybe has the same problems facebook is facing right now. >> i don't agree with that, but -- >> you don't like brian kelly. >> no. what i'm saying is facebook as a company is very different than google google is serving a lot of ads and get paid on clicks but the social aspect they don't really have right now. >> i'm sure google is trying to play that up lately, too appreciate it. we'll let you go and get ready a big show coming up guy adami and dan nathan 5:00 p.m. when you can catch all of the "fast money" action in under half an hour's time. the markets today were plunging was it fears of a trade war with china? in a first on cnbc interview we're joined by national trade council director peter navarro thank you for joining us what a day

>> what a day. >> what is the president thinking about the market? >> look, the market is reacting in a way which does not comport with the strength, the unbelievable strength in president trump's economy. everything in this economy is hitting on all cylinders because of president trump's economic policies we've cut taxes. that's stimulating investment in a way which will be noninflationary. that's going to drive up productivity and wages that's all good. mick mulvaney is orchestrating one of the best deregulation events since the reagan administration that's a supply side benefit to the economy that pushes inflation down and growth up we've got an unleashing historically of the energy sector, which is going to drive down cost to the american manufacturers, make them competitive even as it drives down costs to consumers and allows them to spend more and get more out of their dollar in terms of trade policy, by

reducing the trade deficit, which is the intent of the president's fair and reciprocal trade policies, that will add thousands of jobs to this economy and bring in foreign investment when we put the tariffs on solar and washing machines in january, that brought in a flood of new investment you wonder, and if i put my old hat on as a financial market analyst, i'm looking at this market and economy and thinking, the smart money will buy on the dips here because the economy is as strong as an ox. >> is the president -- have you heard him comment on the market weakness, peter? is he asking about it? have people -- >> i haven't spoken with him today. but let's be clear, the president -- the president's focus, singular focus is on economic growth, rising wages and a strong manufacturing and defense industrial base. >> i know, but you know -- i know he's watching it. he used to tweet about it all the time. >> the market will go up

ology that's kind of where we're at it's the aaron rodgers thing everybody needs to relax and look at the chess board. look, this economy is just strong it's not just the u.s. economy we have the synchronicity globally where europe and asia, latin america, they're all doing very well moving together on this that helps everybody so, again, relax >> let's talk about the chess board for a moment because just this afternoon there was word the president wants to wrap up these nafta negotiations within two weeks. is that realistic? >> well, the issue here, which the president understands keenly is the mexican elections are approaching. you'll get to a certain point, like as you do in the american elections, where it becomes difficult to do meaningful policy changes so, i think whether it's two weeks or 30 days, it's got to be soon ambassador robert lighthizer has been doing a great job going through multiple rounds with his

canadian and mexican counterparts we need to be hopeful about this but not get our expectations up too high let's see what happens what the american people need to know is they're in very good hands with the best negotiators in america, the president himself and ambassador lighthizer. >> what does it mean to have the negotiations finished? do you think it's more important to the president to finish the negotiate, period, with the election coming up or that that's funding for the wall or that mexico says we'll do more to help keem central american immigrants coming through to the u.s. >> look, immigration policy is critical to this administration. it's the four pillars of that policy have been spelled out and the president is firmly committed to that the nafta negotiations are a separate issue from that, as said there's literally hundreds of people on all three sides of this negotiation meeting over the last number of months,

trying to come with a good solution to a bad agreement. you go back to 1994 when bill clinton signed that, we were promised 200,000 jobs and the moon what we basically got was hell for the american workers and american manufacturers that has to end. >> what do you make of chooip's tariffs this morning they're going after pork, 25% tariff looks like they're not putting soybeans on that list. do you think they're targeting trump states and trump voters? >> here's the bigger question to me you have china, which everybody knows around the world is stealing our intellectual property and also using industrial policies which force the transfer of our intellectual property to chinese firms and allowing them to utcompete us. the practical loss has been loss of millions of jobs and

factories to chinese soil. all the president is doing is trying to defend american workers and american businesses against that economic aggression of china what's china doing they're basically throwing another punch at us. i'm not sure that's the best way to get - >> how should the president and the u.s. respond peter, if we read this as the usz is simply trying to level the playing field and now china is coming forward to put on more tariffs, what should the u.s. response be? >> i don't think this is going to be an action/response, action/response. that's not what this should be about. that leads to escalation spirals. i do know the president is firmly committed to a course of action which will level the playing field between the united states and china and he has the full support of the american people. he was elected, in many ways, on the basis of having fair and reciprocal trade, particularly with china so, the course here is going to

be a course of resoluteness and firmness in terms of writing rig the wrongs the american people have suffered. look, they steal our stuff everybody knows that they force the transfer of our stuff. everybody knows that what are we supposed to do are we supposed to not defend ourselves and then when we defend ourselves, are we supposed to take another punch from them? i mean, i think the chinese side needs to think very carefully about how they respond because the american people are not going to stand for that kind of response. >> but i wonder, peter, it's interesting, we've seen multiple examples in recent months of american companies not necessarily standing up to china and, in fact, kind of bowing down to their wishes apple, for example, moving some of its cloud operations into china. you know, whether it was mercedes or anybody -- marriott when they put taiwan as an independent country in a drop-down list and then had to back off and say, hey, we're

sorry. do you see corporate america as a partner in this effort or are they getting in the way? >> the problem is historically that previous presidents have not had the back of corporate america. they basically let corporate america go to china, get ripped off and that has rebounded back to the american people and the american manufacturers here. this president, president donald j. trump, has the back of american businesses and workers. and that's going to be the difference so, i think the dynamic going forward is going to be a lot healthier and we're going to see what we're going to see. the status quo cannot hold here. we can no longer have companies, whether it be apple or anybody else, go to china, surrender their technology and then have chinese competitors come back and beat us in the marketplace unfair and nonreciprocally that's an unsustainable equilibrium for the global economy. that's why i say, if you think about the trade issue, ultimately i think it's really a good thing for the market that

we are doing these kinds of trade actions. what we're trying to do with this situation is try to get to a place where we have fair and reciprocal trade, balanced trade across nations and everybody trades freely in a way that textbooks used to write about but which we never get in reality. i mean, that's -- and i teach that stuff i mean, let's remember if anybody knows what goes wrong with those models, it's the guy who knows how to teach them. >> let me ask you about amazon for just a second because we sometimes hear people say the u.s. should defend its corporate champions in much the way china, frankly, is doing. it should say, you know what, amazon and facebook and google, these are companies that have made incredible inroads around the world, they need to be supported, et cetera you know where i'm going with this the president continues to attack amazon. there's a lot of chatter about whether it will be found guilty of being a monopoly, of taking

advantage of the post office, of needing to be broken up and having too much market power what's your assessment is amazon too big or not >> i like the department of justice deal with the anti-trust issues and stay way out of their lane, but i would say to you that president donald trump has hit it right on the nail -- the nail on the head about amazon on a couple of points i mean, for example, amazon doesn't pay the kinds of sales tax it could it has now gotten to the point where it collects sales taxes from all 45 of the states that levy them. but in a lot of -- some of those states it doesn't collect local taxes. that gives an advantage to amazon over the local retailers. more importantly, there's over 800,000 independent vendors that account for about half of the $136 billion in annual revenues to amazon. amazon doesn't even try to collect much of those sales taxes at all that's a huge disadvantage to

the bricks and mortar retail stores don't forget, amazon earned a ton of money last year they didn't pay anything in taxes. finally, on the post office issue, there are some studies that show if amazon paid the full freight on every parcel it shipped without paying its sales tax properly, that would be about $1.50 per parcel the president is dead right about amazon this is about fairness, recipe prosty, and that's what the president is all about. >> it sounds like you're more focused on saying -- listen, if the post office says, we'll raise prices, amazon could build out their own network. it sounds like you're more focused on the post office issue, and make merchants pay sales taxes rather than break it up. >> the big issue, i think, that the president has hit upon is this failure to pay sales tax.

look, i lived in california for years before i got to washington, d.c. and the swamp and i remember, you know, ordering stuff on amazon, sitting in a county where the sales tax was up almost 10%, thinking, wow, i can buy on amazon 10% off it's like that has sort of gone away now as amazon has pretended to collect its sales tax but remember, half of -- all those independent ven do, it's not really -- amazon is not doing its job. we need to get to the bottom of that these bricks and mortar stores are an important part of the fabric of this country they shouldn't have to compete unfairly against the big behemoth of amazon. >> let me ask you about the economy. as you mentioned, there's a lot of strength out there. we're not only looking at the selloff in stocks today, peter, but interestingly enough, the yield on the benchmark, the ten-year treasury note, it's falling. it was almost 3% and now closer

to 2.7%. frankly, no one around here can really explain it. what do you think is going on? >> yeah, i was a little puzzled when the fed announced three rate hikes before the end of the year because when i look at the chess board, i don't see any inflation to speak of in the economy. and a lot of reason is things like the president's tax cuts, which are going to stimulate a lot of investment, productivity, growth, downward pressure on wages. remember, the supply side effects of deregulation. i think if you see the yields go down, that's -- that has as much to do with the fact there's moderating inflationary pressures due -- >> which is great. you're right that's the ideal outcome but final question here, does that mean that there's no reason to keep hiking interest rates >> well, that's the federal reserve job. all i can tell you is i was surprised when i saw that

announcesment. i remember in the late '90s when alan greenspan was hurrying to raise interest rates and we had tremendous productivity, growth and low inflationary pressures then so, again, you know, bottom line here is that the market -- >> is is it a mistake? was it a mistake then? >> i won't say that. i'm not in -- that's the federal reserve chairman's lane. we've got a good - >> i think you're hinting that it's -- hinting at a mistake. >> all the i'm saying is the vinnestevi vinnest -- investors watching cnbc here, the economy looks very, very strong on all parameters and doesn't seem to be significant infralationary pressures to detract from that strength >> thank you peter that nnavarn.

>> what are your thoughts? >> one thing echoed from me is the idea this brick and mortar aspect is a fabric of the american society i would say this much of america probably agrees with him the idea that the evolution of retail, everything else, is going to be something we have to deal with no matter what we just don't know what it means for amazon on balance. i mean, on the one hand, many american shoppers pay less s they get to keep more of their paycheck, which we all know isn't growing nearly as fast as someone would want, so amazon is helping. the deflationary measure is probably a bad way to put it but the idea we can pocket more money and spend on other things is a good thing, or save it. >> if we want to focus on helping those small businesses -- now, there are some in brick and mortar and some selling on amazon right now and their sales tax is not being collected, so in a way we're kind of taking from one hand, which is the small businesses on the platform to give it to small businesses and the brick and

mortar zone. >> right the whole eco system in retail has to be fixed in a way that everybody can maybe be seen as benefiting whether or not amazon is the ultimate culprit or ultimate at least beneficiary of all the retail woes befalling bricks and mortars, i don't i know if it's fair to say they're the end of, be all cause of the woes. >> society likes a scapegoat, dom. >> who to blame. >> who to blame for this problem, give me a one word answer, do something about it and move on. >> fix it. >> we know that's not how it works. there's always more nuance thank you dominic chu. food stocks were under pressure we mentioned those were retaliatory tariffs china announced and they're hitting everything from fruit to pork. seema modi with a run-through. >> latest trade announcement from china could have an impact on the u.s. agriculture sector overnight china raising import

duties on certain pork products in retaliation tyson foods seeing the worst day in 17 months downgraded to sell at pivotal research china is the second largest export market for u.s. pork producers, export market for pork producers, accounting for 20% of our exports. shares closing down 6% so these trade worries have extended beyond commodities and technology, the u.s. consumer in focus as well. >> we'll see how this shakes out. cherries, you know almonds -- >> $20 billion we sell -- export to china agricultural product. >> in the grant scheme of thing, that's not a huge number but the fruit and nuts and pork, we do a lot of business. >> for an industry, agriculture is 1% of the u.s. economy but it's a huge part in terms of the overall export market for the united states so it's a big deal. >> let's move on to tech names like intel and cisco who are some of the biggest drags in the

dow today and industrial names like 3m and caterpillar aren't too far behind josh, let's start with you in tech. >> kelly, investors slamming the sell button on some of tech's biggest names. let's start with facebook extending the losses due to this data scandal trading in bear market territory. the company in the cross hairs of lawmakers, investors, silicon valley peers like apple ceo tim cook amazon. you were just talking to peter navarro about that also in the red following more critical tweets from president trump. in fact, amazon, netflix, alp alphabet in correction territory. apple down 9% from its 52 week high intel, we have to mention that name that chart having a rough session following these reports that apple plans to use its own ch chips. as a sector, tech is down 10% below its recent intraday high though barely positive for a year can a strong earnings season ride to the rescue

tech is expected to post q 1 earnings growth of 19.3% and revenue growth of 13.6%, also better than the market cfra's lindsay bell notes it's training 18 times earnings >> all right, thank you, josh. tech gets more of the attention but industrials had some big movers in the selloff today, morgan. >> industrial as long as sliding into correction territory. the s&p sector down 2% in trading. big cap names among the biggest losers 3m, caterpillar, united technologies, boeing, general electric despite ge saying it's selling health care asset, ge in bare market territory but utx, cat, 3m, boeing, these are high flyers ae they're down 10%.

two big factors, factory activity slowing after the ism index came in weaker than expected and flaring trade tensions as china ratcheted up the rhetoric amid the prospect of more u.s.-imposed tariffs but the selling was broad based. defense stocks fell today. the ita etf was down 1% despite the fact that this is a group seen as a more defensive play. lastly, transports among the biggest losers the dow transportation average also in correction territory market watchers are warning the transports could be poised to signal a dow theory sell signal. that's average that had a key technical number earlier into the session. that's if you buy into dow theory even so, telling about what we saw in terms of selling in industrial today. >> with the guys around here still talking about it

it's like we're in one of those dow theory cell signals. appreciate it. morgan brennan with the run through for us some news, viacom shares are under pressure in after hours trading. jul julia, what's going on there >> cbs is evaluating making an all-stock bid for viacom, one that would value viacom at below-market value and having les moonves at the head of the company for two years after a merger this is according to sources close to the situation, both cbs and viacom declined to comment i'm hearing no word on the timing but negotiations would be you have to because it's looking like cbs' bid would be below market value this news was first reported by reuters and it's worth noting it

was february 1 that both cbs and viacom announced they were creating special committees to explore this potential merger. back over to you. >> no wonder viacom unhappy about it julia thank you. shares down about 2.5% stocks were lower across the board today and the dow dropped more than 450 points we are down 700 at the session lows joining us to talk talk about this selloff, paul schatz is here from heritage capital and tom essay from the sevens report thank you for joining us paul, what does it say to you that this weakness continues >>. >> i think this is part of the correction that began january 6 26 the actions still look like -- if it's a football game, looks like the fourth quarter of the correction in a note this morning i hoped we'd see a thousand-point down data, really flesh out the remaining sellers, give us a chance to bottom more easily

the fact that we closed off the low is a good sign everybody is talking about the 200 day moving average which makes me concerned because when non-technicians become technicians those levels typically fail we certainly could bounce and probably will bounce a couple three days this week but we have more down side before we hit all time highs 27,000 or more this year. >> wowment 27,000. we're at 23.5 thousand here. when we started off it seemed like we'd get through in the a matter of days now we're seeing the flip side of that. >> yeah, absolutely. we've forgotten how a breakneck pace we saw in january it was a market up like 8% before we turned over so look this has been painful. there's no question about it but we have to differentiate between positioning and fundamentals

positioning got too bullish, that's unwinding now the tech decline is exacerbating it but fundamentals still remain positive for the economy. >> and when it's true for the economy you assume it's true for if stock market, tom but plenty of reasons it might not be it could be one of those periods where interest rates go up or where they feel like this is as good as it gets. are we this anything like that to worry about now >> we should be worried about it there has been a little bit of a slowing of economic momentum the 10s two spread should make everybody nervous but corporate fundamentals remain solid and there's nothing we can see to tell us things are rolling over. all the big names are down in tech, google, apple, amazon. but if you look at the fundamentals of the company they haven't changed because president trump is yelling at amazon on twitter and hopefully we'll see that in earnings season in a couple weeks. >> are you a buyer of names like

that, tom? >> i think over the long term i think you could be a buyer, yes. short term the momentum is clearly negative there's probably lower lows in the next few days but earnings season will offer us a glimpse that corporate america should be on strong footing. that will help break the negative feedback loop in the markets right now. >> and ait would also get phone the data goes to the upside again. >> people are talking about the idea that the trends may stay intact there's nothing that said things will break to the down side. it's a great time too talk about the idea that what is your risk tolerance or investment horizon. i tell people every time there's a dip i'm a buyer. they're like that's crazy. i have decades, my daughter has 18 years before her college education is due, yes i'm buying in the stock market every time there's a dip so with two decades to go maybe it's a good

decision >> paul, i don't know how old your kids are. >> they're 14, 12, and 10. >> so you don't have quite as much time. we have to go. paul schatz and tom essay talking about this market after another big selloff yet again today. after hours look at shares of switch. seema, tell us what's going on there. >> switch reporting earnings loss of $2.09 a share including a $71.3 million non-recurring equity based compensation expense. shares down as much as 24% but now down 8%. back to you, kelly. >> thank you, seema. a reminder that we'll get earnings, dom. the main data kick ooff is april 13, j.p. morgan, bank of america. but here's the news making headlines. viacom is under pressure after sources said cbs is evaluating an all-stock bid for viacom that is below market value. cbs will ask les moonves to stay

on for two years if that happens. the dollar plunging against the peso on reports the president is pushing for a nafta deal within two weeks and stocks closed well off the lows of the days 4 c 4.58 looks better than 7:59. >> thanks for joining us dominic chu. "fast money" starts right knew. i'm melissa lee. tonight on fast, tesla ceo elon musk with the tone-deaf april fools joke about bankruptcy. the company is facing issue after issue. are we witnessing the unraveling of the eccentric car maker plus, the markets are tanking, we have you covered. we're live for the next two hours and if you are distraught after the selloff, give us a call 800-743-cnbc we'll answer your questions live