. this is cnbc breaking news, market selloff stocks slammed as a major wall street selloff goes global. it's a sea of red now from asia to europe to here right here in the u.s. front and center as we gear up for a new trading day, what should you be doing right now and more importantly is your money actually safe? we'll get answers to all of those important questions. it is thursday, october 11, 2018 this special selloff edition of "worldwide exchange" begins right now.

good morning welcome to "worldwide exchange." i'm dominic chu. we are all over this massive market selloff right now futures are indicating another lower open the dow would open down by 370 points on top of the 800 points it already lost yesterday. the s&p off by 35. the nasdaq off by 94 points. the bond market obviously front and center interest rates playing a huge part in the narrative for the market selloff the two-year u.s. treasury note yielding 2.84% the ten-year 3.16. we have seen a back off in rates from those multi-year highs.

the ten-year hit a seven-year high in the last couple of days. there's a sea of red now asia overnight, china having its worst day in 2 1/2 years the shanghai composite off by 5.25%. the nikkei nearly 4% losses there. that sentiment carrying through to europe. the major bourses out there, the dax off by 1.25% the ftse 100 off by 1.75%. the cac in france off nearly 1.5% declines. we have full team coverage of this global selloff. we have steve sedgwick in london geoff cutmore in bali, and let's start with sri jegarajah live in our singapore newsroom their markets are closed and that u.s. negativity went really, really negative in the asian session, right >> it was a rough day.

let's start with china that's seen as ground zero as far as the sign of u.s. trade tensions are concerned worst day for the shanghai composite since february of 2016 this market closed 5.2% lower. that puts the overall losses over thepast 12 months at 24%. we have china trade data coming out tomorrow, that's friday. this is going to be another risk fact their this market will have to contend with. given the fact we are seeing these trade tensions raise uncertainty, expect to see exports slow down for the month of september so that could clobber the market sentiment over here. no surprise that technology was a loser today. the index in taiwan down 6.3% at the close. apple suppliers like log and precision down by 10%. the japanese yen did catch a

safety bid dollar/yen around the 1.12 handle there is a big sense over here this volatility is not going to go away any time soon. if we see a hotter number from u.s. cpi on your end, that could feed into dollar strength, that could feed into stronger yields. not the best of looks for the markets out here back to you now. >> thank you very much, sri jegarajah over in singapore. let's turn to the selloff in progress in europe steve sedgwick is live in london for us >> i'd like to brag, if i may, about europe not only do we have the same factors that everyone else has, but a couple extra ones. we have concerns about tightening financial conditions, about what's going on in the bond yields, with global growth, about the earnings season coming, about the midterms, we got that, but in europe we have

special concerns as well, which is leading this lot behind me into negative territory. the stoxx 600 in negative territory. the dax at the lowest level since the start of last year let's look at individual bourses. i'll give you those extra stories about why i'm bragging one is the ftse mib. we've even got the ftse mib going down again on the back of yet more concerns about a government in italy yet again that doesn't understand the relationship between markets and the economy. salvini, the most powerful man in italy, the deputy prime minister, head of the liga party, he is basically daring the markets not to push them to 400 basis points for the italian ten-year paper over german ten-year paper he's daring the market to push them lower that's a hell of a challenge which some want to pick up the gauntlet for how about a break on brexit? we have basically good news on

brexit michel barnier who is leading the european negotiations -- we could be close to a deal as early as next week hang on. ftse down 1.7% that's because the ftse 100 is made up of mostly dollar earnings, big oil companies and pharmaceutical companies the pound goes up, dollar earners go wrong not only do we have the factors that you have got, we have also got brexit and btps. consternation about italy and politics, german politics and french politics as well. back to you. >> steve sedgwick, thank you for that let's bring it back here to the u.s. shores. two-thirds right now of the s&p 500 stocks are in correction territory, a pull back of 10% or more 20% are in what some call a bear market let's bring in george goncalves

from nomura and larry macdonald, the editor of the bear traps report george, we will start with you rates have been at the epicenter, so i've been told, so everyone has been told about the market turmoil we've been seeing as we see rate stories play out, is it fair to say they will continue to be a driver of the volatility that we are seeing? >> without a doubt how fast it unravelled was impressive last week and earlier in the month good news, good data, it was good for the equity market and the bond market. rising yields for the right reasons. a big snap higher, and that spooked the markets. the 3.25 level is a critical level for markets to digest. >> as we talk about the movements in the markets, we have seen a massive selloff and one that looks like it will continue today does it feel like to you that there is a bottom in sight or is

this the beginning of something much deeper? >> the correlation between stocks and bonds has been negative for the last decade this year on a monthly basis we're positive so that means this month, the last 40 days, bonds have lost close to $2 trillion. so 2 trillion lost in bonds before the stock pullback. most of the last 25 years bonds have been a cushion for stocks every time stocks have sold off the last 20 years, bonds have given a cushion. now we're selling off in equities, but bonds already lost $2 trillion globally

now stocks are catching up so net net, this move of passive asset management, 2 trillion has gone into passive, and people will get their statements, they're losing on their bonds, they're losing on their stocks, that will force more selling it will probably be double or triple as long as the selloff was in february. >> george, as we talk about that kind of environment, if larry -- if he is right, we see a deeper pullback here, it stands to reason that safety assets like treasury bonds and notes, like the japanese yen, like swiss francs, like gold, traditionally viewed safe havens could catch a bid. we're not seeing any kind of real safety move as of yet why is that? >> the losses we experienced a

big and it's not like there's a finite supply of fretreasuries the supply deluge is the perfect storm. ecb pulling back, treasuries pumping in treasuries. given where rates are on the front end and cash yields, cash is an alternative asset class. >> are you saying from a rate strategist standpoint that bond yields at multi-year highs and savings rates, money market rates at multi-year highs provides an attractive alternative? >> it's competition without a doubt. that's why the curve is steepening the fed is not done hiking yet and the curve is steepening. we don't think the fed will stop hiking but this reflex is a reminder that yields were too low to begin with. >> george, larry, jim cramer did sit down last night with barry

sternlich, they were on "mad money" last night. jim asked about the health of the u.s. economy he said costs are rising for materials and labor and we may not feel the full effect of those tariffs until next year. >> i think the fed has to be careful. the economy is not as strong as the number indicated >> can i just say, i feel it's only you and me. >> that's probably right >> but we're right >> yeah. >> larry, barry says the numbers are not as strong as the numbers indicate do you agree if that's the case what else can we expect to see in the market >> remember, two, three years ago when we had a cold winter, a cold winter in the first quarter of 2014 that brought us close to recession. so a 200 basis point increase

opt front end, it's a huge drag on the economy housing as we pointed out last week, housing is in a bear market for much of the last month. housing stocks the regional banks went into a correction maybe about ten days ago. goldman sachs, their regional lending platform called marcus, they lent $4 billion the last two years. 4 billion. they are scaling it back so something is going on in the consumer credit side because of this increase in rates goldman smells it and they're pulling back so near-term the economy is not as strong as people think because goldman would be increasing their lending platform to consumers, not pulling it back. >> certainly a lot of signs to watch. thanks to you george and larry

we'll come to you guys for insight in the coming days as well tech has taken a tumble in the selloff. look at these numbers. facebook and apple falling more than 4% yesterday. amazon dropping 6% netflix a whopping 8.5%. joining me now on the cnbc news line guy adami f.a.n.g. stocks, we talked about them for a long time now they are the epicenter of this latest pullback is there an end in sight is this a buying opportunity or do we have to wait longer? >> good morning, dom >> good morning, guy >> how are you doing, sir? it's interesting it's a great conversation you had. i'll talk about f.a.n.g. quick let me ask you a question, this is not me talking. president of the united states says this is the best economy in the history of our country his words, not mine, right if this is the best economy in the history of the country, the fed is doing what they should be doing. so for him, the president, to

call the fed crazy twice yesterday on the tarmac or wherever he was sounds ridiculous to me this is a president when he was candidate trump talked about the fed being crazy because they weren't hiking rates it's one or the other. you can say we have a strong economy. costs are going higher because there's inflation. if there's inflation, the fed is doing what they should be doing. let's not confuse strength of the economy and costs of goods going higher there's a lot of contradictions going on i'm not suggesting anybody is right or wrong, but you have to look at it if the economy can't withhold or can't fend off this fed trying to normalize rates, real rates are still around zero. at what point does this get out of control job of the fed is not to make the market go higher the job of the fed is to follow the data and do what they need to do, number one. number two, in terms of f.a.n.g., you saw a couple

months ago, and you were on the show that night, facebook reports the stock is trading $206, give or take during the conference call the stock went down 23%. 23%. think about that that was a 6$600 billion company at time and went down 23% in six minutes. there are air pockets to the down side that nobody want acknowledge. amazon, which was 2040 a month and a half ago, everyone talking about there's no end in sight, that stock went to 1850, then back to 2,000, now back below 1,800 so there's warning signs >> you're not weighing in just yet. guy, thanks for the early wakeup call i'm sure you will have a busy day. >> oh, yes i'm sure you will be with us in 12 hours

>> i know. exactly. tune in to guy and the "fast money" traders on "fast money" this afternoon at 5:00 p.m. eastern time we are all over this global market selloff up next, going loco. that's what president trump is now saying about the fed more of his comments and the market reaction straight ahead. and later on in the show, some safety plays. where you can take cover if this global selloff continues the way it is. we're breaking out the protection playbook. as we head out to commercial, a look at the global markets in correction, your full market rundown and more as this special edition of "worldwide exchange" on cnbc llonros x1 is here to help.

you can do things like change your settings, learn tips and tricks, troubleshoot, and even manage your account. finding your xfinity username or wifi password, restarting your equipment, or paying your bill is easier than ever with x1. x1 help. another reason to love x1.

say "teach me more" into your voice remote to get started. if you are just waking up, hold on to your hats we have a global selloff on our hands in progress. futures on the u.s. side of things are now lower the dow would open down by 380 points for the overall market. the s&p 500 off as well. this follows yesterday's 831-point plunge, the worst day for the index since february in asia markets closing down 3.5% to 5% in china. on europe, negativity paced by declines in the ftse 100 president trump weighing in on yesterday's selloff calling it a correction that we've been waiting for for a long time.

he also doubled down on his attack against the federal reserve. >> i think the fed is making a mistake. they're so tight i think the fed has gone crazy you can say that's a lot of safety, actually, and it is a lot of safety and it gives you a lot of margins, but i think the fed has gone crazy >> the fed has gone crazy, that's making ite ing its way t social media and the broadcast stations all morning now we're getting some comments from biggest names in the global markets. jegeoff cutmore is live in bali, how are those comments being tak taken? >> not very well at all. there's been a spirited defense of jerome powell here. some consternation that he's been attacked again by the

president and that the institution of the federal reserve is coming under pressure the reason is two-fold it's important here that there is perceived to be independence for the central bank and also concern about the politicalization of the process. i spoke to christine lagarde about these comments this is what she had to say about jerome powell. >> i wouldn't associate jay powell with craziness, no. no he comes across and members of his board as extremely serious solid. certainly keen to base decisions on actual information and desire to communicate that properly that's what i have observed. >> so christine lagarde is concerned these comments have

been made and some views here that maybe these attacks on the federal reserve, part of the reason are a lack of confidence in share markets dominic, back to you >> if you don't mind me following up, this is a large gathering of some of the most policymakers in global finance yes, president trump's comments are important. what else have you been seeing throughout your time wandering around there, your reporting what is the sense about the biggest problems or where are the biggest hurdles that the global economy faces what are the hot spots we should be watching for? >> the central bankers are swarming around the same issues that investors are having to work with. high oil prices. where is the trade war with china going and how will china ultimately react is there a nuclear option where they sell treasury the of course dollar funding costs

rising there are a lot of representatives from emerging economies here we have a g20 meeting that will take place here. those countries are worried about the headwinds being generated by higher u.s. interest rates and what that means for the outflow and the pressure on their own domestic currencies these topics are just coming up over and over again in the conversations. of course, as you know,they were the feature of the financial stability report that expressed short-term worries about the financial markets. and also raised issues around growth going forward with the imf chipping down growth expectations, largely because of these concerns not everybody here believes that we're going to have that bad global growth outlook, but it is one of the key issues at this event in bali. >> geoff cutmore, thank you very much for that update from the imf world bank meetings. we'll hear more from the white house in the coming days larry kudlow will join us live

at 10:00 a.m. eastern time tomorrow steven mnuchin will sit down with the "squawk" team at 7:00 a.m. eastern time as well must-see interviews. while we continue to stick on top of the global market selloff, let's get you up to speed on the other top story which is hurricane michael businesses across the florida panhandle are assessing some of that damage after the massive storm ripped through the region. courtney reagan is live with us in panama city beach, florida with the latest it seems as though it's the calm after the storm right now. >> right now things are calm, it's warm and we may end up with a sunny day. look at the damage behind me we are at legendary marine this is a boat storage facility and those boats have been toppled. the roof collapsed the side collapsed almost everything is gone of the

structure. as marco pans over, in the middle there are still some boated supported up high and all the way in the back that piece of the structure is intact even here it's a small microcosm of what we're seeing all over pan mra citpanama city. there's downed power lines, damaged buildings. we're under a boil water advisory in bay county there's a kur vicurfew in effecl 8:00 a.m the tyndall air force base says they suffered extensive damage many of the planes were removed in advance, but the facility itself was heavily damaged power outage is extensive across the region in florida, more than 323,000 are without power. almost 350,000 in georgia. in alabama, 361,000 for a total

of 734 without power verizon communications are largely down you can get peeks here and there of it. the power is also out. as far as business response, many are still going to wake up and have to assess the damage, try to determine if they can open up their doors. tim cook tweeting today that apple is standing with friends and neighbors in the gulf coast region and we'll be donating to the recovery and relief efforts. we know 65 walmarts are closed in the region. home depot had to close a distribution center in georgia, so things could be slow getting back up, but we'll keep you updated. >> courtney, where are you headed today what will you be looking for as you assess some of the story lines coming up out of this? >> as we were driving around this morning, we had a lot of roads we couldn't cross.

downed power lines dipping into the road as well as wires themselves, trees everywhere so first when the sun comes up we'll see how much we can get around we want to check in on the local businesses we want to check in on indicators like the waffle house but also the big retailers a lot of people will need supplies to restock their homes and get things back in working order. water could be an issue. we have to watch that closely. >> great reporting stay safe out there. we'll check in with you throughout the day. coming up, continuing coverage of the global market selloff. it's a sea of red from europe, asia, to here in the u.s how can you brace yourself for the big day ahead. and the tech wreck, how to trade the turbulence first as we head out, another staggering stat. the volatility index jumping a massive 40% yesterday. that's the biggest jump since

february much more on the global market tuoiwhrml en "worldwide exchange" comes back from some unexpected friends. these zebra and antelope. they're wearing iot sensors, connected to the ibm cloud. when poachers enter the area, the animals run for it. which alerts rangers, who can track their motions and help stop them before any harm is done. it's a smart way to help increase the rhino population. and turn the poachers into the endangered species. ♪ ♪

global markets are in selloff mode as a major wall street rout spills overseas to asia, to europe, and right here in the u.s., all in the red with

just four hours until opening bells ring on wall street. what should you be doing with your money you're watching a special selloff edition of "worldwide exchange" right here on cnbc i'm dominic chu, brian sullivan on assignment today we're all over this global market selloff the u.s. futures picture indicating another red open at least for the dow jones, off by 370 points not as bad as we were about 15, 20 minutes ago the s&p off by 35. the nasdaq off by 98 points. the bond market, the ten-year treasury note yield is actually lower, reflecting some of that bid for treasury prices and safety ten-year note yield, 3.16%

in asia, the shanghai was off by 5% the nikkei off by 4% in europe losses are being paced by the ftse 100 in the uk, off by 1.75% the dax is off by 1.5% the cac as well off by 1.5%. with the dow yesterday, as you look at how things played out, we knew already at the course of the open yesterday that the dow was going to be lower. we saw that, a bit of stable, then as we moved towards the med day session, another small leg lower, it wasn't until around 2:00, 3:00 when things accelerated to the down side closing at the lows off by 831 points looking at the epicenter for many of these trades, the technology side. the nasdaq 100

if you look at the way it's played out over the course of the past year, it's had ups and downs, generally an up trend what we've seen over the last couple of days is a massive move to the down side here. we've broken down below the 200-day moving average for the nasdaq let's bring in boris schlossberg. as we talk about the markets and the way they're shaping up, is there a sign that today could be maybe a bit of stability compared to yesterday or is it too early to two long this market >> i think it's too early. there's no doubt we could get a bounce and have a couple days of stabilization, but it feels like we're due for a much more serious selloff. the overall situation has changed. the macro picture now is a tight monetary policy with higher inflation. the fed is trapped now in a

problem of its making. if you look at inflation, tariff also have an impact on inflation and higher oil prices will have an impact on inflation the fed can't just stop raising rates. in some way this is probably the least surprising selloff ever because we were at record low cash positions going into this it seems natural we're due for serious correction >> george earlier in the show said cash has become relatively attractive is it the case -- is there a case to be made now that perhaps that cash or the raising of those money market instruments is an attractive alternative for investors?

it >> it is and until we get to extreme levels of cash, it will only be at that point that it's time to look at equities as a trade back into them up until now we've been so overbought for so long that the correction will be much further than it is at the minimum we'll look at $25,000 dow, the first level to break. i think it will also go much larger we don't have brexit resolve, a lot of macro issues are adding salt to the wound at this point. >> borisoris schlossberg thank u for joining us. technology is a major factor in the selloff netflix, amazon, apple, all tumbling the tech sector suffering its worst day in more than seven

years. let's bring in timothy lesko those technology names have been the fuel for the upside, maybe no surprise they are leading the declines here. is this a valuation adjustment or more of a whole sale risk off event in the making? >> i think it started as somewhat of a rotation we've had pressure on the tech stocks, more in the likes of facebook, amazon have been under pressure for the past few weeks. the rest of the market got caught up in interest rates. people are not just getting out of the market, they're getting out of the high fliers i would maybe separate apple from that group, they never traded at the valuation premium that a netflix or amazon traded at so there may be some opportunities to pick up inexpensive stocks

>> so what goes on your buy list if these things become more attractive >> as long-term investors we look at those companies that the streets are really selling off you've seen it in the semiconductor space and in the old tech internet services space. so companies like intel, ibm, even accenture, where you have strong cash flow companies that really are not worried about interest rates but are getting hammered in what appears to be an interest rate and mieconomic scare. >> does this feel like early february through the middle part of march, that kind of pullback? back then everything sold off at the same time. this time it feels like retail high fliers and technology have been the big effogest hit >> it's different this time.

back in february we were looking at first quarters where we were going to see the effective tax policy estimates for earnings were through the roof that selloff felt like it would end. i would echo some of boris schlossberg's comments in that you have other crosswinds that are scaring investors so this may last longer as people get more comfortable with what's going on with tariffs and inflation and rates. >> thank you for your insights this morning we are all over this global market selloff still ahead, the energy plunge oil on pace for its biggest two-day drop since july. we're drilling down on the energy selloff when "worldwide exchange" returns after isth break.

if you are just waking up or heading into work, we have a global selloff in progress u.s. futures indicating a lower open again the dow would open up down 370 points at this stage the index with a major move to the down side. the shanghai in china was off by 5% the nikkei off by 4% in europe, about 1.5% to 1.75% moves for many of those indices. the ftse 100 off by 1.8% now

energy markets are under pressure oil on pace for the biggest two-day drop since july. jackie deangelis joins us now with more on that story. how is this story playing out in the energy markets. >> good morning. what's interesting is that the s&p energy sector was a leader over the course of the last month but yesterday it was one of the laggards that everybody was watching that's because of the action in oil prices a couple things to focus on here the first is the steep run up in prices has been because of geopolitical concerns, because of the concern that the iran barrel also come off november 4th and we'll see a spike in oil prices right now some of that fear is going away and energy investors are focusing on what's happening in the market. you have a rising rate environment, concerns of the imf bringing down global growth estimates. that's another issue when you look at these things compiled together, energy investors say this could have an

impact on demand that's why oil prices have come down from 75 to over $77 $1 a a barrel now also inventories have risen. when you look globally, you can see stockpiles are robust. not just here in the united states but also abroad this will bring prices down. there is still that iran fear factor, but right now stocks and oil are correlated >> you'll be all over it, jackie deangelis, thank you very much let's bring in kyle cooper, director of research from iaf advisers jackie brings up a number of different things at play it's always supply it's always demand it's always a mix of both.

what is it on your mind that will drive things forward, the geopolitical side of things or the global slowdown side of things >> all those things combined in real impact is i'm worried about supply, worried about demand, what i am concerned about is the difference between the two. that shows up in storage that really reflects the difference between those supply and demand factors as jackie mentioned, yesterday the api reported a large 9.75 million barrel increase in crude stocks in the u.s. last week there was anmi 8 milln barrel those inventories have begun to rebound. it appears saudi arabia and russia are possibly making due on their promise to bring more barrels to the market. those are reflected in u.s. and worldwide inventories. >> jackie brought up an interesting point about the

correlations or the trading relationships, the statistical ones that exist between certain assets oil and the markets have been fairly closely correlated for months if not a year or so now is that something you're paying attention to is that correlation or trading relationship going to stay intact going forward >> i think crude is more of an asset class. while there's always been a lot of debate that higher energy prices should be detrimental to equities, they really over the last couple of years have become and are a very, very strong directional correlation on a daily basis. about two-thirds of the time equities and the s&p 500 move in the same direction >> we want to at least talk about the idea of a major storm in the gulf of mexico has now blown through, one of the biggest storms in over a century hitting that florida panhandle region it had largely spared many of

the oil and gas rigs in the gulf of mexico. will there be an effect on this storm on the oil market overall or will this be fleeting >> very little so far oil production was curtailed less than 2 million barrels. natural gas less than 2 bcf. after the devastation of ivan in 2004, katrina and rita in 20005, what is left of the energy structures is stout. certainly a direct hit would take them out, but for the most part the companies can get their people off the rigs, shut down operations and then get them back up quickly. i suspect this afternoon crews will be brought back to the platforms bringing production online >> what is the most important thing for you to be watching in the energy markets >> clearly the next tweet is a possibility because of the fact of the impact it could have

realistically and psychologically on the market. those iranian barrels, it's well known those are coming off it looks like the market is prepared for that. i look closely, even though it's a lagging indicator, i look at those inventories and inventory trends how are they changing? what's the direction of the change and is that change intact and sustainable? >> kyle cooper, thank you very muc much >> well, the "squawk box" team is gearing up for a big day ahead. let's bring in becky quick live from the nasdaq market site. i was here for all of it yesterday. i mean, from the opening bell to the close. it was quite a sight at the end of the day to see the market continue to slide. just your thoughts it was interest rates, and now they're seeing a fall over the course of the morning. >> things accelerated to the point where you started to think, okay, is this getting

overdone at this point that may not be the case this morning where you continue to see the selloffs, but you are seeing technical levels that will be tested s&p has not pushed below the 200 day moving average if that's the case, there's another 20 points or so room for down side for the s&p. we will dig through this all morning. just to put it in perspective, there's concerns about the interest rates, the federal reserve, and now earnings season has people concerned that you won't continue to see those massive numbers that to this point through the year have surprised to the upside. this time we'll listen a lot more closely to those ceos during earnings season to see if they have concerns about rising prices or falling demand either one of those twin barbells, either one could put pressure on the markets.

today we'll get a taste of that. we have delta's ceo, ed bastian, he will talk about delta's earnings that will give us insight into one part of this earnings reporting season and you talked about it earlier, dom, technology took it on the chin yesterday if you looked at the s&p 500 technology sector, that sector was down 4.8%, the biggest deline for one day in seven years. we have gene munster who will talk all things technology he's the great technology analyst with loup ventures then we have tom fanning from southern company, the utility seeing so much happening with hurricane michael. he'll tell us how hurricane michael is playing out across the south. and also we'll talk about how the economy is going with him. he's a member of the atlanta federal reserve. he has some good ideas about what's been happening.

atlanta fed can tell us not only what he sees but also the impact from michael and from florence what that might mean in terms of gdp. finally christopher giancarlo head of the cftc the agency has come under scrutiny saying they will not be enforcing as many rules, but he will have numbers and statistics that says enforcement is in full force when it comes to the cftc. we have all that coming up today. >> a massive show like it always is on "squawk box. i'll see you guys in about 10, 12 minutes time with another update on this market selloff. thank you very much. >> thanks. we are all over this major market selloff futures pointing to a big drop at the open. we are off the lows. we're seeing a massive selloff across the global. coming up, what you should be doing with your money on a day like today stick with us. "worldwide exchange" will be

right back an just investment ad. from insurance to savings to retirement, it takes someone with experience and knowledge who can help me build a complete plan. brian, my certified financial planner™ professional, is committed to working in my best interest. i call it my "comfortable future plan," and it's all possible with a cfp® professional. find your certified financial planner™ professional at letsmakeaplan.org.

- anncr: as you grow older, finan-your brain naturallyional begins to change which may cause trouble with recall. - learning from him is great... when i can keep up! - anncr: thankfully, prevagen helps your brain and improves memory. - dad's got all the answers. - anncr: prevagen is now the number-one-selling brain health supplement in drug stores nationwide. - she outsmarts me every single time. - checkmate! you wanna play again? - anncr: prevagen. healthier brain. better life.

wall street pointing to a big plunge at the open following yesterday's major market selloff. wall street's fear gauge, the vix, spiking the volatility index jumping nearly 44% just yesterday alone. that's up big again. its biggest jump since february. let's bring in our cnbc contributor. as we talk about the fix, it's important to look at this because it does tell us some of that sentiment and fear on wall street are you reading into that big jump into the vix as much as other traders are? >> probably less if you think of it this way, in january, the end of january and beginning of february when we had that pounding in the stock market, the vix came into that under 10 to me that was a sign of

complacency. as the stock market broke, we realized that everybody piled into the short volatility funds that needed unwinding. coming into this, the vick wx w 12, low for sure, but not ridiculously low that doesn't mean -- the anatomy of a correction is interesting we break yesterday the way we did, but if people wake up this morning and say i have too much risk on and people are starting to edge risk i believe we could get down to 2700 in the s&p, that's a retracement of the low in february but it's not as big a deal as it was in januariment. >> as we look at the way things are playing out now, much of this is about interest rates the idea with higher interest rates a more attractive vehicle for capital. equity evaluations start to come down as a trader, or as a portfolio manager, is that driving the market action here

does it feel more like a risk-off wholesale selloff situation? >> the market has to get used to higher rates i don't think it's the level of the rate i think it's how quick we went from 2.8 to 3.25 in the ten-year markets become destabilized with things moving quickly. i think we can handle 3.25 rate but i don't think we wanted to go to it in a week's time. i think the entirety -- the highest hurdle for the last two years is the notion that we'll have to live in a higher rate environment. for the ten years preceding that, it is like what else are you going to buy real estate at beginning of that was the toxic asset, eventually we were buying it. this is a different environment. we have to figure out if stocks are the right place to be from growth perspective not just from

a storm perspective. >> does it trouble you now with the market selloff we've seen that we have not seen treasury yields fall further? >> no question that was the standoff yesterday, who was going to blink every time the stocks would take another leg down, now yields will fall. they did fall at the end of the day. i'm a bit shocked that they didn't fall quicker earlier. >> all right jim, thank you so much for those insights that does it for "worldwide exchange" on cnbc. "squawk box" will pick up full coverage of this global market selloff ahead. as you can see, the futures pointing to a lower open dow by 312 points. the s&p off by 29. the nasdaq off by 75 points. the ten-year note yield, 3.16% "squawk box" comes back after

this break we'll have all the markets covered from asia to europe to the u.s. keep it right here on cnbc

♪ this is cnbc breaking news, market selloff >> that was interesting. what is it about the month of october? good morning stocks slammed as a major wall street selloff goes global it's a sea of red from asia to europe and here in the u.s. as well we have information to help you make decisions about your investments. we'll show you the market response around the globe. it's happening now weak futures this morning. we'll take you sector by sector through some of the biggest moves and bring you reaction from president trump and global

market power players it's objec it's october 11, 2018, "squawk box" begins right now. ♪ ♪ live from new york where business never sleeps, this is "squawk box. good morning welcome to "squawk box" on cnbc. we are live from the nasdaq market site in times square. i'm becky quick along with joe kernen and andrew ross sorkin. our guest host this morning is peter boockvar, the cio of bleakly advisory group, also a cnbc contributor let's get you caught up to speed with where we stand on the coverage of the market selloff the dow plunging more than 800 points yesterday the vix hit the highest level since april. a 43% spike in one day there it is playing out in a