park, california, 11:00 a.m. on wall street. "squawk alley" is ♪ ♪ ♪ ♪ good thursday morning, welcome to "squawk alley." i am carl quintanilla with julia boorstin and jon fortt at post 9 of the new york stock exchange morgan is off this morning session low is 253 rates put investors on edge. bob pisani is watching where everything is moving >> hello, carl, we have a new story to talk about, always like to talk new stories, a yield

story. let's show you some of the issues the markets are dealing with it is not the only story but global bond yields are rising. that's the principal thing to move the market. we are seeing emerging market pressure, yields go up, that hurts emerging markets they had been rebounding recently and another secondary story about china worries, not just trade but tech spying stories, a data web service run by apple may have been subject to surveillance by chinese government they say it didn't happen, wasn't an issue. we don't know the answer it is effecting the maskt, t-- e market the whole faang complex is down 2% i mention emerging market, higher rates is generally a problem for emerging market. the eem, the benchmark is there, that's on the bottom

chooin internet down, bras -- china net down, brazil, turkey what's up with rising yields big story, obvious story, we had strong data recently, not just u.s. services data but some data out today has been strong and better than expected the fed has been less accommodative. powell said very accommodative policy is no longer appropriate in the current environment that got a lot of attention. trade fears subsiding a bit, that's also an issue interest rate-sensitive stocks, it has been heading this direction but spiked up monday, that got everybody's attention home goods, construction, utilities, over the last month weaker with the overall market to the up side bottom line, we don't know how far the interest rate story is going to go. it may stop right here, but for the moment it is suddenly getting everyone's attention back to you. >> thank you, bob pisani

mike santoli is with us and s & p investment advisory reportfolio manager erin gibbs good morning to you both not just rates, pmi slowing, oil, is this how we go into q4 >> it is off sets to all of the good news, i think it is the story of the year. s&p 500 is up less 2% since end of january what the market has been doing all year is figuring out how long the good canlast and off sets can last. rates, higher cost of corporate deb debt i don't think it is bailing on the bond market for stocks i think it is adjustment to stock bond valuation ratio, stretching to cycle highs, and i think the market has to come to some kind of terms with the new level of yields if they stay here. >> erin, heading into q3

earnings, what are you watching in terms of growth targets and what can happen in light of the stock move today >> a couple of things. there are big hurdles for a few sectors, q3 can be one of the hardest. financials is expected to have earnings by 40%, they have been lagging most of the year some higher rates, spreads are small, that can be tough and dragon the market. tech has a slightly easier hurdle of 22%. but i think one of the things we have been looking at is the beat rate is 80%. now the expectation is 80% of companies beat earnings and revenue targets, and that makes it that much harder. if we are going into earnings season where valuations are a little on the higher side, and right now we're still pretty healthy, but that could be some worry. people are used to having very high growth rates and very --

>> mike, looking at the tech stocks roku, chegg, shopify, smaller stocks seen as perhaps a risk, investors may have been putting in for growth, is that what you expect to see given what you see in the bond market >> i think ones that run a lot that people have good profits in, i don't think it is a direct bond market effect to those particular companies but it is about risk appetite, ratchet it down tech in general is a narrower story, it is mostly software, some huge platform companies, lost semi conductors as a leadership group and lost other areas along the way, so i think smaller cap, junior varsity internet names that had people with speculative interest in there backing away. >> the consumer holiday season,

4.3 to 4.8 how do you square that >> we have seen this in the consumer discretionary some has been killing it, they figured out inventory management, they've gotten margins under controls, and some are still behind in basically the new economy of online shopping >> namely amazon. >> namely amazon but we have seen we had great returns with nordstromss, macy's, big box retailers that really turned around. >> broken down to some degree, right? macy's an example is coming off 33 versus 41 a couple months ago. >> there again, they had the run and then have come back down we see fourth quarter as a real area for discretionary stock to come back, bounce back big they're well valued, have great growth rates, easier comps,

better inventory management. >> what are the key factors that determine whether we see a pull back in october? >> this could be what amounts to a little bit of a pull back now. we have had a stealth pull back in sectors and small caps. now it is less stealth y with te dow down 200 points. i am watching the emerging market dynamic and the dollar. it starts to look like a two week bounce in a big down trend as opposed to revival, and that could complicate the story i honestly still think the u.s. big cap index remains kind of intact we haven't undercut anything that -- it is a sector based thing. the economy, talk about the retail, this market is separating everything, the world into disrupter versus disrupting like auto and some financials,

asset managers, and that's an interesting thing that i don't think will change soon. >> for the investors playing at home, is this a time you think of shifting allocations? if you had been tilted toward risk because you believed in the rally, with again the ten year doing what it is, with so many stocks having been on such great runs, do you perhaps think of shifting things more conservative at this point >> we have been, when we have been looking at how well the stock market has done this year, comps are getting tougher over next year and worse for farther into 2020, so it is definitely something where we may not have been quite as rosy now versus six months ago another thing we're looking at is the difference between growth and value stocks and until we see the value stocks start to participate more in up trends, we are more concerned we are getting too long under the tooth in the under trend because it is the

reverse stocks driving it. there's a 13% spread between growth and value, that's enormous, largest in a ten year history. until there's better participation, you question how long can this keep going. >> another way of making the point you just made. >> on the jobs number, does the market want a barn burner tomorrow or something that misses >> tough call. we always prefer barn burner, but misses are -- tend to have longer term trend. >> cool the fire >> i would think the market doesn't want a super hot wage number that flares this bit of inflation panic. i think tomorrow could be a very good opportunity for the yield gains to moderate a bit and say okay we're going to buy bonds on the news because we already panicked in advance. >> see what happens in the morning. thanks coming up, we keep an eye on shares of amd.

the stock dropping this morning after falling into bear market territory yesterday. amd was trading as high as 34.14 on september 14th. why facebook is doubling time to delete your account and data eaua aeyafr e teth brk. [ upbeat music ]

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time it takes to delete your account and data from 14 days to 30 julia, you got a statement from facebook they say we've seen people try to log into accounts they opted to delete after the 14 day period the increase gives people more time to make a fully informed choice joining us at post 9, henry blodget, business insider ceo, and kevin delaney. henry, it reminds me of the temptation to text your ex after a breakup. now there's a longer waiting period before it is finally over something about it seems wrong am i reading too much into it? >> no. i think they've probably seen a lot of people say wait a minute, is it really gone? that was a fit of anger, i was drunk, and they want to help those folks, and it can be spun the other way, trying to keep their hooks in you forever. >> the implication in articles covering it, they're trying to slow down decline in users

>> what we saw second quarter is facebook active users in the u.s. was flat, in europe it declined that's a number that they're surely keeping a close eye on and investors, is it because of privacy scandals, gdpr in europe that said, i see it the same way henry and don do, this is a consumer feature people need a little more time, basically are regretting they delete their accounts and facebook has to deal with the mess >> at some point facebook has a thing about perception it does matter they need to show consumers, if they want to delete data, they give them the opportunity to do so in a clean, easy and quick way. are they not getting that message? >> they have a lot of work to do on perception around all of this stuff, going back to all of the scandals of last year and so forth and this going forwards.

my guess is this is not a big deal for people, they go in, it is inactive. it will disappear if you want to, probably not being used for bad stuff, but in general facebook has to devote more energy than in the past to restoring their reputation, solidifying it, to kevin's point, one of the good things here is that instagram is a gem, changes there are important. that is facebook's hedge against facebook usership declining or becoming older, the instagram generation. >> you can only delete if you sign up for instagram or you have to delete through what's app. 160 on the stock is a firm floor. they were already throwing so much in the kitchen sink in terms of expenses last quarter what could they possibly say this quarter. >> we are seeing all tech

companies being hit more broadly. there's a lot of concern as investor, i have concern about mark zuckerberg's grip on the company. we have seen a real shakeup at instagram, how much turnover in key parts of the company are we going to see, and i think some investors want to come out of third quarter with conviction that zuckerberg is on top of things. >> one thing that i don't have a question about is mark zuckerberg's grip on the company. it seems extremely firm. for a silicon valley company, turnover seems low they have a new structure in place, lot of people around a long time. key players, truly key players business wise seem to have stayed in place unlike companies in the valley. >> recently they lost people, i think the question with

instagram is whether as zuckerberg exerts more control over it, women he a -- will he allow it to stay separate from facebook and something with a distinct identity and people feel different about than facebook or will he bring it so much into the fold it becomes one in the same. i think that's something that's in focus this quarter. >> i think it is fascinating you chart year to date snap versus facebook, snap has fallen off the face of the earth compared to facebook, right? >> yes. >> just on a return basis. >> absolutely. >> finally, let's move on to a report in "business week" that chinese spies used a compromise a supply china of 30 companies, including apple and amazon, a report those companies deny. this as vice president pence delivers remarks about attempts to undermine the trump administration and interfere

with u.s. politics the thing about the story and situation that leaves me scratching my head is i don't see the incentive of apple or amazon to lie about this and say there was no compromise when there's no allegation that customer data was involved here. they talk about the need to be transparent, about security and data breaches. if this happened, why not say three years ago this happened, our security got better and we moved on. >> i agree with you. a lot of people parse statements by the two companies, relatively firm denials there are ways to read them. amazon refers to aws and maybe doesn't refer to amazon more broadly, and apple's statement refers to servers deployed in their services, so there are windows in their statements for conspiracy theories. >> but overall, henry, why they would lie about it why wouldn't they just say here's what happened

consumer data wasn't compromised, we had some corporate issues but we continue to be vigilant. >> it is a little embarrassing, for one. >> but that happens all the time this is the least embarrassing reach if it is a unicorn jumping over a rainbow >> here's what we do, we test everything, this issue came up with due diligence in acquisition on amazon, appears they caught it they look like they're in command of what they're buying and doing. i think the broader question is this is something people theorized about. hey, all of this stuff is made in china, maybe it is getting baked in there, we have all these things watching us all over the place this is a step toward that i think it is interesting with president trump and some of the tariffs and so forth, national security justification, using the car industry, this might be where you start to see some

national security justifications for tariffs and bringing manufacturing here in this industry. >> there have been so many movie plots about this this is like science fiction brought to life. if this is something that needs to be examined as a security tlel threat, it puts the spotlight on them in a different way. just yesterday we were here talking about tim cook denying the fact that they have privacy issues because they're hardware, that's an issue for software and facebook and google, but now the fact that their hardware raises another issue, i am curious what comes of that. >> there are two issues. seems that user data wasn't compromised, if it was in there, they probably caught it based on their statements, the second issue that henry points to, the supply chain for most of the technology we use passes through china one point or another, and actually in this instance,

there's a company with employees based in california as well. i think the real ramification is pressure on the supply chain that runs through china in terms of ratcheting up the call for protectionism for trying to fix it i don't know how you do that without raising prices for tech goods dramatically and i think among other things it is another thing in the potentially inflationary basket over time. >> we talked to sonos chief and asked how quickly supply chains can be moved to vietnam. it is not like flipping a switch, very expensive, takes a long time. >> the most infamous thing we heard from ed snowden, the u.s. cisco system headed to other countries. the idea it is fixed by moving out of china and the u.s. is pure in all this, questionable >> i agree. >> all right

henry, kevin, thanks for being with us. >> thank you. when we come back, a closer look at two cloud companies. and first, look at the markets dow is down about 200 points keeping our eye on the ten year and 30 year. s & p down 21. back in a few minutes.

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ten year at 3.2, up 30 basis points let's get to the santelli exchange and rick santelli. >> if you're a fixed income person that enjoys watching interest rates and how things align globally, this is your time how did we get here quickly. we did many santelli exchanges about double tops. the reason that was so important is the double bottoms that we

had around 138 basis points between july of 2012 and july of 2016 made anything powerful. so the fact of the matter is the 311 standing out, the high yield in may other than what occurred yesterday with interest rates was glaring as the market spent basically the last week and a half, two weeks hovering around 305. why? we went over this. because if you know that double tops are so important but the powerful nat ure of the notion that rates are going up for n t fundamental technical reasons, if you take out 311 and there's no double top, this should have room and it does and it has. let's look at the setup around this i look and see tens to 2s, around 32 basis points, high yield today in 10s we came into the time zone, it was 323. you see the long end rocketing

to some ex-at the present titent many issues effect the longest maturity on the curve, not the least is pension institutional demand, how tax changes and effected the amount of purchases effected by higher tax rates versus lower and the window is closed there's also the dynamic between savers and investors the big story, everybody is selling treasuries, running into stocks i'm sure it is true, but let's not dismiss the motion that savers have been left in antarctica a long time and globally when you look at what investors can get, you want to make this idea that it is in and out of treasuries, and the problem is it is an impacted market from history and manipulation quickly. other signals. thank you, barkley's look at ten year charts of high

yield. you can see the spreads collapsed. there's virtually no fear of extending on a credit issue for high yield same could be said for investment grade if you're willing to take the risk in corporate and high yield for more yield and treasury yields moved higher, you want to watch these. maybe the taste buds of investors will change from a credit perspective the other issue, u.s. ten year versus booms you look to 1989, we have taken out all other metrics, hovering 268 to 270 yesterday i thought i saw 275. this is huge the european rates and japanese rates and other asian rates aren't going to keep up with what's going on with recalibration of the u.s. economy under normal fundamentals after the credit crisis, this will eventually be

problematic. you hear about things like twists in the ecb as they look at this and think this is flight unsustainable. jon fortt, back to you >> rick santelli, thank you. two former rivals are merging. valuing the combined companies at $5.2 billion. both stocks seeing dramatic gains, up 12.5, close to 13% both specialize in making software that makes it easier to store and come through massive cloud data they say that in fiscal 2020, the combined company will surpass a billion dollars in revenue, guys. >> interesting looking reaction. even though the companies were rivals, they were complimentary and competed in different markets. that's why we are seeing both stocks up so much and they're different in what they bring to

the table. >> the thing i wonder, did they need this for leverage is this a sign the mega scale cloud providers are having maybe a pressure impact on smaller technology providers, they felt like they needed to do this. >> for scale so much advantage for scale when you compete in this kind of market >> feeds the debate about cloud overall. the european close, let's get to seema mody. >> european markets retreating following a global pull back amid rising treasury yields. ten year german yield following the lead of the u.s. bond markets, that's a chart to watch. switching to britain benchmark index, tracking for the biggest drop in a month, dragged down by weaker than expected economic

data brexit is still in focus the pound jumping against the dollar prime minister theresa may plans to rush the brexit deal to head off rebellion from her own party. ireland backs her plan, and all uk customs union with the pound at 1.30 now. more trouble for two recent london ipos, aston martin and lending fund, extending losses funding circle down from last friday's price and aston martin down 6% since debut yesterday. julia, back to you >> thanks so much. let's get to sue herera for a news update. >> good to see you, julia. good morning, everybody. here is what's happening at this hour the justice department charging seven russian intelligence officers with hacking,

anti-doping agency and other organizations hours after western officials leveled accusations, new accusations against moscow's military spy agency three of the seven were previously charged by special counsel robert mueller >> this indictment alleges a conspiracy to use computer hacking to obtain nonpublic personal health information about athletes and others in the files at anti-doping agencies and sporting federations in multiple countries and to release that stolen information selectively and sometimes misleadingly iran's supreme leader says the islamic republic will quote slap the u.s. about sanctions to the nation he made the comments in a speech before thousands of people and melania trump meeting in a classroom in malawi on the second stop of her african tour.

plans to meet with her malawi counterpart later in the day you're up to date. back town -- downtown to you. why shares are up sharply and where the cannabis investment fits into the picture. looking at the markets, the dow down about 196 points. the s down an equal amount on percentage basis, three quarters of 1%. we'll be right back. it's time for sleep number's fall sale

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welcome back shares of constellation are up frank holland is back at hq with more on their quarter. >> constellation brands leading the s & p on track for the best day of trading since june last year the earnings call just wrapped up i just got off the call and there was a lot on the call about cannabis they announced additional investment of $4 million in canopy that deal to be completed later this month constellation posting a solid beat, the revenue numbers are beating expectations and going forward, the company raising guidance for the fiscal year

the streak has them 9.34 constellation raising the bottom and top end of projections to range of 960 to 975. earnings numbers released before the bell, 5% improvement in inter day trading. looking at the numbers the past year, constellation improving by 8% the company reporting success with introduction of corona premier, saying beer shipments increased more than 8% and depletion, the amount distributors are selling increased by more than 10% one surprise, shipments of wine and spirits slightly outperforming beer strong quarter overall on the conference call, executives had this to say about the entrance and cannabis space. >> we expect to reap the benefits of the cannabis business i am very excited about the excellent prospects for this business as the global cannabis spac

spacey -- space emerges. >> seeing a $700 million increase in the value of the investment in canopy the company reporting solid returns on the beer business, raising guidance on eps. julia, back to you >> thanks, frank a question on the focus of cannabis were investors concerned at all about whether or not there could be legal ramifications, if they were being cautious enough, optimism about being able to expand cannabis business in the u.s. when it is not federally legal. >> that's one thing that came up they talked about cannabis being legal in canada later this month. said right now it is not legal federally but are optimistic that will change in the near future there's a lot of legislation in states to make it legal on the state level, but they have a lot of optimism about it becoming legal in the u.s right now, executives seem to believe taking advantage of the

investment in canopy and maximizing their business knowledge in canada would help them if things take a turn here in the u.s. >> great frank, thanks so much. sticking with the cannabis industry, cb insights expect to see the legal marijuana market top $20 billion by 2025. this as beauty and wellness lines and snack and beverage companies enter this disruptive space. we are joined by co-founder of cannabis focus fund. poseidon asset management. i live in california where marijuana is legal, but when i talk to investors even in california, there's a lot of concern about the fact that federally there's still big question marks on what will happen how are you approaching this >> yes, similar to what rob was saying about optimism in the united states, it is still federally legal, but we're now

30 states medical, legal, nine adult use states the progress is happening. we are optimistic as well, and it is going to roll out probably similar to how prohib igs was. you had the states and then the fed. that's something that constellation brand's dna, they're away how it happened before and playing the same game it is smart how they approach canada first, where it is federally legal, understanding the marketplace and getting ready to expand. you see that $4 billion investment in canopy, to us that's a signal of what's coming in the united states. >> investors seem bullish about the opportunity to get exposure to cannabis through constellation brands you look at the other stocks, tilray and aurora. where do you think is the best best >> in the public markets, this kind of volatility is normal

surprisingly low for a big announcement for a company like tilray with convertible notes to only trade down as much as that. we are used to price swings far greater, and those stocks specifically have seen those moves in the not too distant past when we look at this industry, there's so much opportunity across the value chain and across the investment landscape where certainly there is opportunity in public markets, but when you look at the high valuations, it is not surprising to see these levels of capital raises happening last week along, saw numerous companies raising tilray, gw pharma, gti last week, so it is smart for them to do that at high valuations but we look at the private markets where things are more sensible and could be acquisition targets for large multiple companies

>> morgan, so many hopes seem to be riding on what happens federally in the u.s i wonder what you think the impact of midterms will be one way or the other, which party seems to have the upper hand, whether that might be reflected in some of the valuations of the companies, startups that are trying to place bets on pot. >> yep so right now we have a couple of weeks away from canada opening the fully legal market cramer has done a great job of alerting the marketplace about what could happen on the back side of that but we have some elements in the united states such as midterms coming up that could become very interesting. we have the states act that's been in play here and gaining traction, that would be a powerful move for the cannabis industry it would create a framework for legal state protection and allows the fed to have more time to understand how they want to roll it forward.

we are watching the states act closely and watching the farm bill very closely. that seems like it has been extended that's another powerful bill of protection for industrial hemp and potentially cbd. we are watching those and certainly as midterms come into play, that could add a lot of bullish sense around both of those and for the industry at large. >> morgan, i know you can't speak for big beverage companies. we talked to the pepsi cfo earlier in the we are, he was mum on plans for cannabis or cbd beverages. what do you think they're thinking, where are they in the process of gaming the industry out? >> constellation set the bar they came in, got their position established. now the rest of the market and beverage makers, whether alcohol or traditional coca-cola and pepsi, everyone is trying to figure it out now. constellation has a great jump on them and did so smartly

early on people thought they were paying too much, hindsight is quickly showing that was smart. they're learning with real capital and real insights by being directly involved, where other players are having to learn. they're in catch up mode where we see them playing, and certainly cbd makes a lot of sense with belief the farm bill could pass that could be a legal play for them to get involved, and benefits of cbd are fantastic and how it is derived, making sure it is quality, and how it is being integrated into these delivery methods, whether it is beverage are very important to efficacy but there's so much more that we're still learning about potential for cbd and just proving how large a market it is to see a large, conservative company like coca-cola or pepsi looking at t whether or not they're willing to admit they're actively looking at it, it is clear they all are at this point. >> great thank you for joining us fascinating space to watch

>> thank you very much. when we come back, more on the reported blockbuster cyber security hack out of "business week." amazon and apple deny they were infiltrated by a little chinese chip and what the president is saying about that. keeping an eye on this morning's sell off, approaching session lows s & p on track for the first back to back weekly loss since june i don't know what's going on. i've done all sorts of research, read earnings reports, looked at chart patterns. i've even built my own historic trading model. and you're still not sure if you want to make the trade? exactly. sounds like a case of analysis paralysis. is there a cure? td ameritrade's trade desk. they can help gut check your strategies and answer all your toughest questions. sounds perfect. see, your stress level was here and i got you down to here, i've done my job. call for a strategy gut check with td ameritrade. ♪

i am scott walker. here's what's coming up at the top of the hour. rates and the rally. the ten year hitting the highest level in seven years stocks are paying the price today. what happens if yields keep climbing and the big cell call on ibm. we debate that stock's future. and pete ll at the top of t. see you in little more than ten minutes. >> see you then. and a report out that apple, amazon and other tech companies have been hacked by chinese spies using a tiny microchip the company is denying that report josh lipton has more on that story and the trump

administration's response. josh >> reporter: that's right, john. we heard the vice president there talking more generally and very tough about china, the latest report could only increase tensions. the report based on 17 anonymous sources says the chinese government did target american companies. here's how the attack apparently worked chinese military designed a microchip about the size of a grain of rice, inserted it at chinese factories that supply to hardware company called super micro, compromised mother boards were built into servers that made it into data centers operated by dozens of companies. the chip could contact computer control by hackers, creates an open door into hardware. supposed corporate victims of the attack as you mention are pushing back against the report. amazon telling cnbc at no time past or present have we ever found any issues relating to modified hardware or malicious chips in super micro mother

boards in any elemental or amazon systems apple pushing back, too, saying each time we have conducted rigorous internal investigations based on their inquiries, meaning their bloomberg, and each time found absolutely no evidence to any government agency in this regard ic see the impact on super micro, it's down, falling 55%, falling below 500 million in market cap bottom line for viewers, no consumer data is known to have been stolen. it speaks to broader concerns from u.s. officials about china engaging in spy cam campaigns, based on the tech hardware assembled over there and shipped here guys, back to you. >> not a good day for big tech at all apple down 16 and amazon down 2.

we go to break, wopner mentioned that sell call on ibm over at moffett initiates coverage with a sell rating, call the recovery protracted and uncertain. shares down 1% dow is down 234 and the s&p 500 below 2900

the labor market is hot and it's going to get hotter. >> when you look at what's been powering the market, scott, it's old school tech. it's been ibm, cisco, it's been intel which has been on fire >> a new record close fo

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buying the right stocks and using money from shorting others to finance it has led to eye-popping gains in some names. dom chu has a look at some winning pair trades. >> as we look at technology, we know that it's been one of the outperformers so far this year during times of market stress like now, could we see the bigger divergence as happening in some of the big pairs trades? take a look at some of these, when you look at the technology sector, it's been an outperformer but within technology and communications services, look at the divergences happening. what you have is nvidia versus a broad com. those particular ones, that's a determiningens, whether or not the market stresses lead to more of that remains to be seen if you look at the software and services side of things, you have intuit and symantec

those particular stocks have diverged pretty markedly you can see as well, one other one to highlight, on the communications services side, within the megacap social internet google and facebook. we'll see if carl in times of stress if those big pairs trades end up widening out even more. >> thank you very much dow is down 228, we're back in a moment. whoa. this looks worse than i thought.

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the vice president taking a confrontational tone toward china. he accused beijing of using a quote whole of government approach to interfearing and influence democratic processes in the united states he also accused beijing of running an extensive and wide-ranging campaign to undermine support for the president. >> beijing is pursuing a comprehensive and coordinated campaign, to undermine support for the president. our agenda, and our nation's

most cherished ideas >> pence also called out specific companies that he said had been threatened by chinese authorities. he said that beijing had forced delta to apologize for not calling taiwan a province of china on its website he said that marriott was forced to fire a u.s. employee who had liked a tweet about tibet. we want to point out that cnbc has not verified those instances. pence went on to say that china's tactics are much worse than anything that russia has been engaged in so far carl, back to you. >> fascinating to hear the vice president getting granular on individual stock names. we mentioned the pressure on the market and on bonds. dow is down 246, some individual names in addition to big cap tech snap with 7 handle for the first time twitter one of the worst names last month getting pressured again.

>> dow down 6%, a lot of concern about what we're going to the hear in the next quarterly earnings report. competition, pressure on growth. >> that's not all. i mean spotify, alphabet is down 3%, too. tech is having a bad day. >> close to session lows, over to the judge and the half. >> i'm scott wopner is a big jump in interest rates about to kill the rally in stocks why the rest of today's trade could very well hold the key to your money it's 12:00 noone a and this is e halftime report. rates and the ralliy time to change the strategy? a new tune from f.a.n.g. and two moves on big names, ibm and ge only on the halftime report to defend their calls it starts right now. good to have you with us on this thursday, here to debate and trade the biggest storie