two-thirds well up the worst levels of the day. the spider bank etf both up by about half a percent right now to session highs this has been a pretty amazing move higher. >> yeah. i think you made an important point. let's bring in the closing bell team who will take us through last hour of trade team. what an interesting couple of hours with this major market turn around when it comes to communication services names in general, the home builders >> i hope we can continue the improved positive momentum both consumer sectors and the communication services we will pick it up from there. thank you very much and welcome to the closing bell. >> we are kicking off the final hour of trade with major improvements for stocks. we were talking about the dow

turning around after being down 548 points at the low of the session just currently down less than 50 points coming up i'll take to the ceo about how it is impacting his business and first our reporters are standing by. kate and steve wrapping up comments that have been breaking throughout the day let's start with you, bob. >> you know, it's very simple. the market is facing more headwinds than it was and they are trying to figure out is it more positives than negatives? since the beginning of the year we have been dealing with the strong economy, reduced regulation we are about to go positive here look at all of the positives we

have been dealing with this has been happening throughout the year. tariffs, higher material costs we have a populist there it is a major investor in technology funds it is something they had to deal with nonetheless i want to point out what's been going on today we have had some real nibbling in the most beaten up stuff. it opened up 4% today. we have seen them go positive. bank stocks have been dae-- dea. >> home builders, we know what's going on with them

they have been terribly for a long time. i want to point out how far away they are from their 52 week highs. building stocks 35% below their high bear in mind the s&p is only about 5% from the 52 week highs. this is not a straight down market we have had a terrible couple of months now they are trying to figure out whether they are actually really sustainably, heavy trading going on in the beaten up sectors back to you. >> what about volumes? are they on the way down or back up >> in this group all three sectors have been very heavy turning around >> thanks very much for that let's turn now for a look at how

today's earnings reports are impacting. >> the dow is down 25 points right now. s&p components reporting three of them. dow shares of 3m are dragging some of the worst. this is after the maker of everything from scotch stap to post-it notes cut the full year profit forecast. by the way, those 3m shares well off the session lows there is also construction equipment caterpillar. it is still even with the dow moving higher. it reported better than expected profits in sales the full year profit came in slightly worse than expectations it is seeing increased costs tied to things like materials and freight. check out what's happening with mcdonald's it is thanks in parts

to higher priced menu items and higher average per customer. i wish i had more time it's not even the busiest day of the week that is on thursday. those are really shaking things up back to you. >> thanks. let's head back to the knack daz. it is down more than 10% from recent highs we have a look at what's moving. >> that's right. we are only down around .10 of a percent. earlier it had hit the lowest level in six months. it is currently down nearly 7% for the month today.

tech names getting hit hard. those having the biggest point impact many of them were names. facebook having a 1 point impact we did see reversals in names like google and apple. the russell 2000 also down over 10% pacing for the worst month since september of 2011. also remaining as the nasdaq dipped back out of correction territory. other names win biomarin and wynn tesla up around 9.5% another avoiding the name was netflix. we'll watch that into the green. back over to you >> thank you very much for that. five different fed officials making speeches today.

steve has taken a look at all of them and sums up what it means for the economy and rates, steve. >> thanks very much. fed officials engaging in a little bit of car talk some of you remember that program from public radio. dallas's fed president speaking right now in galveston, texas saying the feds should patiently move saying it is time to take the foot off of ak sccelerator i'll give you those in a second. it will be slower, con sierms a -- consumers are in good shape. this is at a slower rate he is a little bit concerned about the yield curve saying if the inversion is of size and duration it would concern him. does see more turmoil coming in. let's skip to what he said from atlanta. he also said it's time for the federal reserve to take his foot

off. he raised the 2018 and 2019. it is strong enough. we have cash curry bostic followed him. tonight two more speakers, charlie from chicago i don't expect a selloff like this or the ones before it to change the feds outlook of a december rate hike and probably three more rate hikes next year as the fed wants to get two neutral. call it to the 3% range. the fed might change its outlook. >> what was the show called? >> car talk. >> car talk. >> it was a call-in show people called about problems getting their car started.

>> there we go fed show a new show >> yes >> cars and the fed together >> done. >> steve, thanks very much let's continue our discussion we have nick and jim. good afternoon to you all. i'll start with you, art main reason for selling this morning and what do you think turned it around for us? >> the strongest region was china. they made the statement they were not concerned about trade wars and tariffs it convinced everybody, oh, it doesn't sound like they want to cooperate. it pulled the plug on things we started out with heavy selling in the morning when they broke through some of

the critical levels there was no trap door selling that followed up when they did it. they are debating because it is all about china. do i want to keep bargain hunting into plus territory? >> are these worries overblown especially when you get things like united technologies making comments that yes, maybe there is potentially slowing but they are not seeing it? >> i think they are not overblown. if you look at the trade wars it will be an extended trade war here for us what we have done and we think it is a place that we have actually pulled out of our shorter time because of china's slowing, because of interest rates rising and because of just the trade wars in general. so i think that, you you know, it makes sense for people to be concerned about the trade wars

and, you know, the effect they will have as far as inflation down the road. >> do you think it is a reason for people to buy earlier this morning or there is not that much support from evaluations? >> i personally think evaluations are pretty high. i think there's a lot of people looking at forward pe's. some i have seen as high as 180. i just think we'll continue to have problems with a 3.7% unemployment rate with growth pushing up cost. that is labor as well as capital costs. it will keep the fed in position to keep their process going. it is going to continue pressuring things. on the other side there's a slow down coming. it is already happening internationally. i think it's coming here in the

united states. it's kind of the message of what the stock market is telling us i think that combination of continued rate pressures and slower growth will still be a challenge here for the stock market going forward >> we are down 62 points at the low almost down 550 could we close lower >> it is a possibility if china doesn't support its market or go sboos free fall again we'll have an ugly day tomorrow sum up for us what you see on the earnings season >> i think earnings season has been good. people are beating on the bottom

line it is 27 and 25 had decent support there. i'm glad to see that we are seeing a bounce today. i think we could go back up to around 2,800 in the short term >> i kind of think earnings will come in more like 160 next year. maybe it would make me a little more excited ultimately. i think we are going to need that kind of moldable for 4% wage in this the other thing which we didn't really get today is fear we have had the selloffs it has always been really

controlled and kind of calm throughout we never get a full on run throughout the treasury. gold hasn't had it i would like to see a full on panic which is to me a little better entry point i think we'll have to go down there again and shake people up a little more before we see this >> okay. thanks very much we'll see you there. thank you all. still ahead, well have much more ahead including a look at why the financial sector has been hitparticularly hard. plus bucking the down trend all day long after earnings and revenue beat expectations. we'll see how the market is impacting his company's trading

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welcome back to the closing bell we do a little summary of financial moves today. we have regional bank. black rock here down 0.9 here. clearly the move is fear falling. it has been big fears after their earnings they are down about 20% over the last one month pnc down 0.9%. going to spin you over here. have a look at citi. why are they selling off today it is not so much the yield curve. it is the big factor for most of the last year or so. there's more factors it is a fear that loan growth

may have peaked. it is also a fear banks are having to pay up for their customers. that is why citi is down today so banks tonight to be down. clearly must've improves from earlier on we'll stick with financials. tdameritrade ceo is here joining us >> thanks for having me. >> good for business >> we get paid on the trade. so up or down it is good for business, absolutely >> in terms of some of the activity you see from your customers do you tend to get

more phone calls, more trading activity how would you categorize that? >> yes they see the news. they see the show and they decide better check on my portfolio. we find our clients trade into the opportunities. clearly today there was an opportunity and we are seeing it rebound right now. >> you have seen it in terms of some of their clients where they are potentially value hunlting and deciding to buy on an afternoon like this? >> yes we have seen the cash levels have been dropping down literally for the last ten years. clients were taking advantage and putting more of their cash to work. >> i have to get their thoughts on what seems to be growing competition. you fidelity and robin hood.

>> how are you thinking about competition and what do you think it means for the industry moving forward >> it is good news that more competition means lower prices i say it is under attack ris rupgs, new technology, our particular feeling is we love our particular price point we think we have great value, great education and our results today proved it. >> do you think given the fact that there is more competition that it is a race to the bottom? >> you can argue it has been since 1975 >> okay. >> that's when our industry was created instead of paying literally hundreds of dollars it was 50 and we are down to 5 to 10 it has been a win for retail clients to trade at lower and lower costs.

>> it is a little over a year since you closed on the stock trade deal e-trade is said to be in play. there because small number of larger players but as you say there are also others that offer value. there might be further consolidation. i think we are pretty stable as an industry. >> you saw the rise earlier this month. where do you see rates going from here through the rest of the year >> no question it just feels like we have had lots of speculation about this whether they are behind it or not we are seeing it in terms of wage inflation and with unemployment rates the way they are there will only be pressure

up >> tim tim, than, thanks for jo today. we have about 40, 45 minutes to go before the bell. the dow has made a dramatic comeback we are down about 32 points the s&p only down about four and a half points right now. caterpillar is seen, today the company sent a chill across the whole market we'll take a look at which stocks tend to move the most plus, are you better off sitting out earnings season all together together we'll discuss how to tackle th instead if getting caught up with the crowd, the investment managers at pgim take a long term view. uncovering opportunities for alpha next few weeks stay with user. next few weeks

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>> welcome back. the dow is down one point. what a huge day for recovery dows are down about 2% the dow is down 0.1% s and p down 1% as well. nasdaq positive. perfect timing as we move forward. caterpillar is down today.

>> we did look for the companies most correlated to caterpillar's performance. the group was made mostly of industrial names first up heavy duty truck manufacturer which released earnings this morning. stock has fallen among other names. deer, cummins set to report earnings in the coming weeks boeing is set to report tomorrow morning. >> thank you coming up we discuss today's wild market action and why it may be time to rethink what's in

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hello everyone at a meeting of the nation nalt space council vice president pence warning that national skuf security threats will increasingly come from space and will not be limited to earth

>> while the last administration too often failed to meet the growing security threats in space president trump stated forcefully a truce that the leaders of the national defense university have long untd that space is a war fighting domain just like the land air and sea. >> a judge reduced the amount of money and then blamed it on the popular weed killer round up she slashed it to 78 million she also denied the request for a new trial. scientists discovered what they say is the world's oldest in tact ship wreck it is more than 2,400 years old. its design had previously been seen on ancient pottery.

>> 2,400 >> it looks like a great fishing trip >> it was. >> we don't know what's in it though so we'll have a to see it is completely in tact >> i think it's exciting that it is over 2,000 years old. >> i agree that it is the best story of the day >> i'm keen on the whole national space force >> mine the wine think think there's a lot of wine on that ship. >> we should talk more about that we have to leave it there for now. >> you got it. let's get back to our reporters monitoring the market action bob has more on blast driving the rebound. mike is looking a how stocks are performing today kate rogers has the big movers let's get started with you >> what did turn things around it was not big buying like the

spider or the russell 2000 it was at the most beaten up sectors initially. at about 11:00 things started changing badly beaten up. it was a big thing i'll show you an example it was 23 and change the volume picked up as it approached break even around 12:00 or so. we know how beaten up the banks have been here they went positive we saw about 11:00 buying there. volume picked up notably the bank stocks started turning around it was the open at 45 or so. you can see it at 47 as we head towards 47 volume dramatically picked up around

11:00. home builders same situation here about 11:00 several of these, you see the move up as it went into positive territory. finally i think the thing that really put us over the top, 3m turned around. around noon it turned around people are watching it 3:00 a.m. which was the leader and kept going down throughout the day. we did turn around about 12:00 we passed the early morning lows some of the worst performers on the day acting a lot better in the middle of the day. back to you. >> thanks very much. see you on the floor in about 20 minutes for the close. let's get a look at how some of the most heavily shorted stocks are falling today. >> yeah. a very similar story the groups that were most stretched to the downside includes some of the most

heavily shorted stocks it is before indexes were coming back it represents in a sense short covering profit taking it is profit taking on your shorts tesla is conspicuous a little bit of excitement about new developments in a short seller saying he wouldn't short tesla anymore. they are outperforming on the upside today it shows once we get the market these are stocks that have been weak for much longer than the market has it is some times a short term change will begin in the stocks that have already been at the extreatmee extremes f extremes for a while kate is monitoring things. >> that's right. we are currently off the lows

for the day. composite downright now. we had preefbriefly turned posi. it is pacing down 7% for the month. it is now having some of the biggest impact nasdaq 100 with apple adding about 100. tesla adding nearly 5. other tech names we are watching amazon, microsoft and facebook are having negative point impacts on the index the biggest percentage gainers include tesla and netflix. we are watching wind and some of the biggest losers here today. once again the russell 2000 down over 10% for the month it is on pace for one of the

worst in september and also remains in correction territory as the nasdaq dipped in and out of correction territory. back over to you >> thank you to everybody. with less than 25 minutes to go before the closing bell we do have the dow down 40 points right now. the s&p is down about five or six points it has been quite the dramatic reversal dow is down after being down 548 points earlier today we'll talk about the best way to play market volatility >> and the ten year yield rising around 30% up next we'll discuss how it is impacting things closing bell back in a couple.

frmg welcome back to the closing bell new 52 week lows it is not seen since september 2017 harley-davidson falling to lows not seen since 2011.

the dow is down 69 points having been down 548 earlier. stocks are staging a major come back today >> areas such as lending as we look at this a lot of that relates to interest rates and concerns about rising interest rates. what are you seeing within your customer base? >> at the beginning of this year we made a decision to focus on quality of loans to make sure we are meeting the needs of our members in a unique way to make sure we can be there to help them get their money right ultimately our goal is to help them achieve financial independence it means buying a house, having

children retire and changing careers. we don't want any of that because of volatility in the marketplace. we want to be there when they are making decisions around uncertainty. >> you sacrificed in order to get a higher quality of loans for your customers are you seeing the opposite to be true as well where they are kind of pairing back their exposure to kind of account for potential for more in the future >> interestingly enough periods like this in terms of rates increasing creates an opportunity in two ways. people are rewe vail waiting what they want to do or their current lending or current interest rate and credit cards it is to uniquely meet their needs. many of the current consumer services company pull back >> you all and as ceo you have been looking to diversify the

businesses it is holding deposits, trading individual stocks. what's it like trying to turn this business as you see some of this volatility in the marketplace especially with competitors like bank of america? >> we are on a mission and it is quite exhilarating we want people to save, spend, protect and invest we are in the saving and spending business. you can earn interest up to 2% on your deposits you can use an atm card with no fees you can use sofi app and crypto currency it includes times like now that create uncertainty >> the bread and butter is really student lending and so

forth. it showed 1.5 trillion are out there for student debt are you seeing students willing to take on more debt in other areas like mortgage or personal loans? >> we are seeing hef sli demand for people wanting to refinance their student loans, that they improved their credit rating we are seeing people consolidate their unsecured personal lending into personal loans. the mortgage business will not be as active but we want to be there for members to serve their needs. it is a big important financial decision and i think people evaluate where am i putting my money from an investment standpoint if they are invested recking noise they need to diversify more >> thank you very much back over to you, morgan >> thank you

with 15 minutes before the bell we see selling begin to accelerate down down about 100 points the nasdaq which was positive a short while ago is also back down about .40 of a percent. >> i think we have four basis points >> it was green. now the market did say turn around but many banks still under pressure options fees? are you raising your hand? good then it's time for power e*trade we are back after this e*trade. the original place to invest online.

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through internet essentials, comcast has connected more than six-million low-income people to low-cost, high-speed internet at home. i'm trying to do some homework here. so they're ready for anything. welcome back to the closing bell the s and p at 2743. it is down about .04%. it is real estate and consumer staples. in terms of laggards is energy and industrial after a string of earnings that investors did not take so kindly to. in terms of the number of bank

stocks we have hitting 52 week lows as well citi group and key bank. >> financials there as a whole has been underperforming good afternoon to you both if i start with you the banks used to be for the most of the last 12 to 18 months it hasn't really been the factor leading to them selling off in the most recent couple of weeks, has it >> partially it is one of the things you and i have talked about. people don't understand the impact of interest rates on banks. it's not just when interest rates go up that it's good for banks. it's not just the shape of the yield curve. some banks are more deposit sensitive, liability sensitive which means that it's harder for

them to attract deposits without paying mier rates. citi's is higher they don't get the benefit when interest rates go up different banks respontd differently and fundamentally banks weren't that cheap it was 1.7 times book. just not that cheap. >> which particular stocks >> i don't think the banks are particularly attractive. the main reason being we saw it is a very flat yield curve there really isn't any sector of the economy that has very very strong loan demand a lot of their business is commodity. i don't think it is very

attractive >> what about goldman sachs of this world they are clearly meant to bent fit and they have banks year to date >> that's a great point. >> goldman sachs is trading for less than that they had a spectacular quarter they are not loved their equity business is coming back strong. investment banking business is strong it is very well positioned morgan stanley very well positioned it has a great asset management business >> how should we think about loan demand? you could potentially start to see the u.s. economy, the growth here begin to slow we have seen growth slowing, are there any sort of signs that it

could be taking place when you look at activities within banks? >> well, i think you really have never seen strong loan growth the way you would expect in a normal economic cycle. i would expect it to slow down i'm not looking for that at all. >> you also hit a 52 week low today. talk us through that one >> yeah. it has been disappointing. it is a higher bait that name. they have a lot which go down when the markets go down people are worried about whether their assets will be declining they haven't benefitted in an increase in interest rates people think they can lend out the deposits that are held at bank of new york at higher rates

than they are paying their clients. it hasn't materialized in the way people would like. it has been a disappointment >> thanks very much. up next we'll be back with the closing count down seven minutes left to trade. and after the bell henry mcvey is joining us, what he says why investors should think about reallocating their about reallocating their portfolios each day our planet awakens with signs of opportunity. about reallocating their portfolios but with opportunity comes risk. and to manage this risk, the world turns to cme group. keep it right herel costs. all so they can manage their risks and move forward. it's simply a matter of following the signs.

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welcome back kenny, an extraordinary day. reason for the bounce back >> it didn't come back with any real strength. it kind of eninched its way up l afternoon. it is getting weaker again you certainly feel the heaviness again. >> china was down overnight. is is that important to watch? >> absolutely. china was down almost 2.75%. it is important to understand what will happen starting in

asia it will be key to see how their markets react. >> thank you very much as always, let's have a look at some of these charts it tells the full story. we opened first half we go to the lows today. since then the last half an hour kind of plateaued. certainly a lot more a tractive than it could have been. it speaks for all four of the major indexes. let's have a look. you can see that we are roughly down about half a percent. nasdaq got positive. all of these were down 2% or more than 2% we should take this down .5% here is a snapshot there germany down more than 2%. france down almost 2%. here in the u.s. we are going to close down about half of 1%. we'll bring out the sector

performance. communication services importantly positive the other two a little more boring oil is down sharply. >> there was no particular news event that turned things around. what happened was about 11:00 some of the most beaten up sectors, home builders and bank stocks started getting volume. why at that time there was no news event. it was a largely technical driven market. we saw those start moving up about noon we saw 3m and caterpillar to the poster child for what was wrong with today also start coming off of their lows and passing the early morning highs. i know it sounds very technical. once you saw 3m start moving above the early morning lows we

saw a volume push into 3m and buying interest in 3m. the fact that the worst performing stocks started turning around attracted volume interest the market started turning around we saw them and saw they weren't going down anymore at 11:00 we were starting to go down a little bit more i know it's not very satisfying. you want somebody to say you saw something happen but people are looking for bottoms here and stuff that's been beaten up. stocks are 30% off of the 52 week high.

regional ban regional badges are not in bad shape. >> financials as a sector are underperforming. they are down. we did see a bit more selling there in the final half an hour. dow is down 122 points but of course the low of the day was 548 points big board closing bringing it and the nasdaq is discovery. back to you >> it has ban major comeback as stocks settle here we have the dow down about 126

points it is closing above 25k. it is off as much as 548 points at the low of the day. caterpillar and 3m the big laggards similar story for the s&p. nasdaq finishing the day down about 31 points. it is after dipping into correction territory and moving briefly positive i'll be there just barely a little over an hour ago. in terms of russell 2000 it is down lower on the year now. we have got team coverage on wall street. we are covering stocks kate will bring us that. looking at the big earnings and watching the international markets. steve is monitoring this and we'll start it all with bob.

what drove to this turn around >> there was no particular news event. nothing that really turned things around. the most important thing i have heard around 11:00 when the most beaten up sectors that we have seen all year, talking about semi conductor stocks and regional banks all started to suddenly lift. why did they lift? there is no news event but there was clearly buying it. regional banks are down home builders are more than 30% off of their highs shares came out and didn't drop even at the open

banks have moved down it was the most beaten up stocks that started lifting around noon. we saw a volume spike into 3m as it started moving above the lows earlier in the day people are looking for signs here they had been dramatically oversold it is a good sign that some people are willing to come in and try to pick bottoms in the market there's a lot of moving pieces in the narrative the you look at sectors a lot of people here who are trying to say wait a minute.

home builders down some people today said i'll take a shot >> back to you >> thanks very much. more on the volatile day there >> hey, kate >> hi. >> nasdaq closing down 31 points or so for the week so far down nearly 3% and for the month down nearly 7%. you mentioned we did briefly dip today. we are also in correction territory. it has been a wild day it has been interesting here so far with reversals with big tech names that helped to lead earlier in the day they wound up having the biggest

points tesla adding nearly 5. google reversed throughout the day. the biggest gainers nasdaq 100 included tesla, netflix and apple. also mentioned the russell 2000 down over 10% for the month. worst since september of 2011 and ended the day as the nasdaq wound up out of that back over to you >> kate, thank you earnings is a big factor we have a look at some of the biggest movers >> we'll start with caterpillar. it finished well off the worst levels of the day. it posted better than expected profits and sales. it falls short of analyst

estimates there. they did try to ease some investor concerns by telling them on a conference call today they were very comfortable with the outlook for china and they expect to have another good year over there the other after the company buying everything from post-it notes to scotch tape posted worse than expected profits in sales. it sited the effects of foreign exchange rate volatility for the bright spot it came by mcdonald's the bilgeggest point contributo. it also posted the 13th straight quarter of same store sales growth thanks in part to average customer spent now it includes at&t and boeing before the opening bell. you then got four, microsoft,

visa, tesla. expect another wild ride back to you. >> thanks for that let's bring in mike. mike, important to see that rally today. talks through what you think was the driving factor behind it >> yeah. important to see it go back slightly below the lows we saw 12 days ago. we talk about this concept of a retest of the lows what does it really mean the index is down for the levels that have been dramatic to see if there was more selling pressure there there wasn't it was actually less intense selling pressure it fapeaked at a lower level. you did have the groups starting to lift off the bottom really all it means is this is a place you can draw a line and say the market doesn't seem to

want to go below that level. the come back was i guess impressive but also methodical it wasn't kind of a grab for stocks >> this is in terms of seeing a positive but i don't think we are out of the woods yet we are in the midst of earnings. anybody that comes out with any type of negative news. before it was any bad news that's fine. we'll oversee it today we are doing all right bank earnings, what's the hard part there their names will not be as high. interest rates will effect them.

i think when you digest all of this because of where we are with the election cycle and because of china it's not easy to see what the next couple of corners will be. it will tell you they are pretty fair and some are pretty cheap >> we have some and josh has the details for us, josh as for guide though texas instruments is calling 114 to 134. analysts looking for 138 it is a revenue of 3.6 to 3 ppt 9. analysts looking for 4 billion chairman and ceo saying that revenue did increase 4% from the same quarter to a year ago

back to you. >> thanks very much for that >> it does come back to the point people wondering whether even though earnings growth remains strong that we might have had the best quarter already. >> and the market has been handicapping that already. you had texas instruments already 15% off of its highs i don't think it will be the only one the market has kind of lead the way here companies will tell you if the market was right to worry. i doesn't look like a huge size. it does seem as if you'll have to make your way through a lot of messy announcements before you get an all clear >> let's get back to our broader report we have a look at how things are fairing. >> it started in asia where it fell after witnesses the best

day in three years south korea at the lowest level since march of 2017. europe caught in the cross hairs. political uncertainty in italy stocks in europe trading at a nearly two year low. earnings have also been bleak. we await results which are set to report tomorrow morning both of those stocks are trading down on the year i also want to pivot to latin america. brazil which has been a bright spot traded down as well ahead of its election this weekend three central bank policy meetings will give investors a better understanding as to whether these global growth concerns are truly justified we'll look out for that. >> thank you very much for that. >> it is important to see the u.s. markets end and it is down less than the international markets. it was shaken off by the end of

the day. >> it was constructive i think you have to see how the overnight goes it seems as people were concerned about the fact that china recovery seemed like a one day thing. it kind of rolled over again i think we'll be sensitive to the push-pull of the world if you remember you were starting to have this story line build in global economic expansion. it was a very rare event it was true far few months i wonder if we'll have to get accustomed to the idea there is a choppier growth picture >> you have the focus on brexit and the deal we don't have a deal there how should we think about that can they do that >> so at this point the market is testing everybody's federal government is the fed going to raise rates?

is this a temper tantrum in europe they are hard pressed to raise rates you have got the china issue i think it is kind of earns that are flat to maybe going up a little bit you'll see the central banks starting to raise rates because of liquidity and the market does not like that right now. they expressing it with selling off financial sectors to say hey, you'll cause a recession. we don't like it does the consumers we are taking a little pause >> they are paying close attention to what members are saying today steve has those details. >> a few more to finish speaking he said he will make every effort to avoid knowingly

creating every serversion. it is the small gap he thinks it is signaling and he says the job is to ask the economy and make policy decisions so rejecting he says -- caplin two of the day's five speakers tonight. they said impatiently move to a mutual monetary policy stance. time to take the foot off of accelerator. also using the metaphor saying the economy is shifting its rate to a higher gear and we have yet to pump the brakes he raises 18 and 19. the economy is strong enough and

the gradual movement is appropriate. >> when would they start looking and should they at all >> well, here is the thing let's put up a three week chart of the dow jones industrial. this is how sort of local or daily traders look at the market with that three week decline they say oh, my god. it's not up yet. don't even bother. there it is right there. there is a three week. there is a decline let's sozoom out they will see a huge rise in stocks well done there gentlemen and

ladies they see a huge rise in stocks their concern is whether or not financial conditions are tighter. they look at that chart over the time and they see stock prices being high therefore the cost is relatively low. they think we would have a long way to go for stocks to fall before they consider financial conditions from the stock market are tighter relative to stay in the past year or past two years? i don't think the fed thinks that way or sets policy given what happens in the market over one, two or three week period. >> okay. thank you very much for that before we discuss some of those points we have breaking news >> yes the president just holding a photo op a couple of plins ago continuing to float the idea that he and republicans on capitol hill will paush middle

class tax cut in the next couple of weeks here is what he had to say >> we are putting in a tax reduction of 10% i think it will be a net neutral because of other things but great for the middle class it will be a tax reduction of 10% for the middle class business is will not enter into it it will be on top of the tax reduction that the middle class has already gotten we are putting in a resolution probably this week i think you folks nou knknow abt >> are you worried about any negative reaction?

>> i'm not worried about anything i don't worry about things >> so you heard the president talk about putting in proposal for a tax cut not clear when this could happen what the mechanics are behind it. it is at some point between now and the election and 14 days time and then the voting would take place on capitol hill after that it is not known to be productive in terms of new legislation. it is not clear this is ever going to happen. so saying it will be for the middle class and not business in addition to what the administration got past in terms of tax cuts. >> thank you very much for that. it sounds like preelection

posturing. back to the market discussions steve was talk about the rate environment. is there a reason why we can get constructive again >> i think what's happening is because rates move so quickly that a lot of market thinking it will slow down the economy with a consumer we know as two-thirds of the economy now pausing and saying do i want to buy that house? do i want to spend money on a car? i think the market has reacted to that saying look at that. it is a late cycled move nobody is helping really they are all having their own issues if you look at it we are not that high. we are 3.2% compare today where you were is really not it's just at the level that the

average consumer looks at and says it's much higher than it was a year ago once it is digested consumers will start saying things are normalized we could see that trajectory again. >> yeah. before we let both of you go we could be seeing midterm posturing in terms of proposed tax cut. if you see rising rates it might be another argument for it >> yeah. i don't think anybody will say if you aren't a mainstream m if right now the market is dealing with as much as fed, and global issues at the moment >> thank you for that. >> somes making a big come back.

i open spop popping up >> later henry mcvey tells us why you should be rethinking your assets in this environment. your assets in this environment. stay with us your assets in this environment. stay with us every investor should ask questions. what am i really being charged? and is it eating into my returns?oney in the right place? is my advisor a fiduciary? is he always a fiduciary? a good place to start is with an independent registered investment advisor. as fiduciaries, they live by a simple rule: always act in the best interests of their clients.

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the dow is down 548 points should investors be getting defensive? >> robert frost from commerce street very good afternoon to you both. what's your take in terms of whether today's bounce back from the lows marks something that's likely to be the bottom? >> we think so i said some times i think we make a mistake of trying to find an ir rational reason. the thing is corporate profits are at an unprecedented level right now.

we don't think it is really indicative of a long-term pull back we think it is after a long period of time we didn't have any real volatility in the markets. >> you have somebody that is a retail investor. they are tuning in now and trying to understand what is going on in this market. what would you tell them >> all of this is fairly predictable. they predicted a lot of weakness in the market. i think we can expect this all the way through the election i would be very very cautious about coming in even if i was bullish about fundamentals we are not going to have any certainty in this market until after the election >> would you be a buyer or seller

>> i would be a buyer. i like energy. i like financials. i was listening to bob a few minutes ago. i agree with bob i think now is the time to start to nibble on some of those sectors that have gotten beat up the most we flight continue to see volatility we think there are real bargains to be got in the market right now. >> the election is a couple of weeks away if you think it's a matter of turbulence after we already had the market down about 7% in the month, is that what you're wanting to be allocating what do you think people should be doing right now >> i think we ought to be and we want to get on there for it. why not wait for a little more

stability. every year the market has gone up on average about 15%. all of the other years less than half of that why not wait for the trend a little bit sure maybe the market picks up a little bit but at least you're catching the wave up instead of missing it >> thanks for joining us volatility has been the watch word in the markets of late we'll look at why the fear factor may be signaling a market comeback we'll tell you what wall street is expected tomorrow we are back in a couple of minutes.

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>> welcome back. breaking news on target's holiday plans. their ceo joins us now with more, courtney >> hi. that's right target is out with the holiday strategy the third quarter earnings come on november 20th he says he is as confident as he has ever been going into a holiday season with regards to how prepared they are. i asked him if he is still as confident about the u.s. consumer now as he was back in august when he said that the

consumer was as strong as he has ever seen. >> for the u.s. consumer they are at work. they are seeing wages rise their confidence is strong i think it will be a really strong retail holiday season and our focus is making sure we capture market share and delight the consumer >> no change since august 22nd >> not in the u.s. today we have got to look to 2019 and beyond as we look at the consumer each and every day they are in our stores, shopping online, shopping multiple categories as we check consumer sentiment it is still really high. >> the main focus is to make sure the experience is easy. that word easy coming up again and again. target offering seven different

way to shop, ship or deliver including free two-day shipping for the first time with no minimum order starting on november 1st for holiday season. even though a number of new tariffs went into effect at the end of september for now they say target is able to keep its prices competitive. >> we have big categories that will flex depending on the economic environment and consumer needs we are looking at what's happening with tariffs i will personally watch that each and every day right now we want to make sure we are focused on the holidays we are delivering exactly what the guests need. we have to continue to prepare for changes in the micro environment. today we are focused on making sure we deliver a great holiday experience >> it is certainly not a holiday

without toys it is the first holiday season without a toys 'r' us. they say target plans to win in toys he says the retailer has been gaining share every day when it comes to toys. typically half of all of target's toys are done in this holiday quarter. they are doubling the number of new and exclusive toys they are adding space, 250,000 square feet of space total they are remodelling them in about 100 stores we'll keep our eye on that maybe it will be more than 50% of those this holiday season back to you at the new york stock exchange >> this is a stark reminder i need to start thinking about my christmas shopping freight and shipping costs, is this something he is thinking about as well as we get into this peak shipping season? >> it is a great question.

we had a media briefing. we talked about that exactly what might it be on margins? they sort of went through the it rations. some you will not pay for. some of them you'll order it online but walk into the store and pick it up there's a restock option that can help offset it. certainly there are a number of costs that are going up, wages too. target offering $12 an hour this year that is $1 more than they were last year. they feel confident how they will mitigate all of those costs. we'll have to see if you pick up a lot on that free shipping. it could end up pretty expensive endeavor >> gauge for us. you know that company well how strong his hint was there for his strong holiday quarter it is stronger than he has been

if past years. are you confident he will get that right >> yeah. you know, i think it is now -- i believe we have done this for five seasons with mr. cornell. he says i never felt as confident as we are now. it is in their stores, in their shipping, in the team. a lot of what we talked about today isn't totally new. it is now things they have been testing, piloting and rolling out. we don't have the third quarter earnings yet retail reports start the earnings season. we are really kind of already into holiday then. i think he feels very confident in everything he has been working on for years is really ready for the big nationwide debut. >> okay. great stuff. thanks for that. we look forward to more of that coming up on cnbc and tomorrow morning as well. saw has an update for us

>> here is what's happening at this hour. white house economic adviser saying president trump's proposal for new middle income tax cuts is doable he warned not to under estimate his ability to get tax cuts passed >> recording the in proposal 10% reduction for middle class families, that's doable. we are working through it. we are going to be consulting with leaders >> a viral outbreak in new jersey has left six children dead and 12 others sick. the facility has been told it cannot admit any new patients until that ends. a prosecutor says he will not charge hill with a crime even though he believes the four women who say hill groped them at a party in march. he said it would be too difficult to prove the case. law officers for the women say they will file a civil suit

instead. that's the news update back downtown to you >> okay. great stuff. thanks very much up next, find out why the volatility index could be signaling a market come back why it is time to rethink why it is time to rethink how you're it's about quality. no trendy stuff. i want etfs backed by research. is it built for the long-term? my reputation depends on it. flexshares etfs stay with us risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully.

another volatile trading session. we are look to go see whether market recovery is on the horizon. >> it has for all of us. this is the volatility index it will give us a clue as to whether the fever has broken the index did kind of go back to the old lows first i want to take a look at early this year. sit a huge volatility speck. it is late january peak. we fell 10 or 12%. had an implosion of all of those exchange products. i want to circle these lower

highs here it is as if it was attempting to bottom there was a lower high in the volatility index this is very tentive we don't know how it is going to play that was the peak. it got above 28 in the middle of the day. today we peaked actually around 24 we got above that level in the morning. it shows you at least right now you have the makings of a less intense selling event. >> if we consider it starts to be quite a worrying sign it's still not as terrifying as ten years ago peaks of the financial crisis >> the absolute levels of stress are far what they were then. we were talking about the market itself moving on a daily basis

it is not out of line with where we should be i would point out that volatility levels are a little bit suppressed because you have so many sectors going in different directions. when all stocks are going to same way the index moves tend to be reflected that way. >> it is priced into mostly downside protection. it is essentially telling you here is the cost a very short term downside protection it was lower than it was a couple of weeks ago. >> thanks very much. another volatile day on wall street the dow finishing low after the session lows which were down 458 points i believe -- >> 548

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and chief investment officer thanks for being here today. >> thanks for having me. >> we have seen pretty dramatic moves. how would you guide investors to be positioned right now? >> i think the biggest thing that's going on is there's a shift from monetary policy to fiscal president trump was talking about another middle class tax cut. we have been in almost a decade long period where global central banks have been putting more and more liquidity in the system that is inflected in october where money is coming out of the system that's one thing we were talking about. people talk about europe being slower growth. we are seeing wages start to pick up in europe. germany's record level unemployment the same thing. you have been reporting about margins getting contracted or getting hit. i think it's real.

i think it will be with us what does it mean for investing? we have been talking about this which is short in duration and probably have less growth in portfolio sa portfolio and really we have been trying to buy things. we are buying 5 to 10 years and some times longer. it is cash flow linked to nominal gdp. it has been a big area focus buying a lot of things in the u.s. and then some things in asia >> i think one of the points i think you're making here is that money is going to come out of bonds regardless and therefore we might not get that classic negative relationship between stocks and bonds >> yeah. i think this is actually a secular shift. it is kind of the immerging market you can actually buy a lot of stocks and lever those up and

buy bonds as your defensive mechanism. when stocks went don your bonds rallied. it is what a lot of funds did. recently what we are seeing is stocks are selling off bonds aren't rallying as much. you don't have the safety net. it is back to what it was like from the 18 hundreds until 1998. so we think it is going back there. if we are right it is a pretty big deal >> how much of a dramatic move would you expect on the actual interest rate side it's fine if they are no longer correlated if yields don't go up very much very fast maybe it's not a dramatic move. >> if you look right now in u.s. bonds they have actually had the two year worst performance we have seen in decades because you have been starting from such a low rate i think it is a little bit like the late 1960s where rates started to go up we actually don't see them moving up.

our peak rate is about 350 the point i'm making is that they have been the shock absorbers for the past few years and that's going away. you know, when it started if you have long growth stocks that's all you needed to know what we are saying is that's changing >> what should be the diversification tool >> what should you do? everything you guys are talking about is a shift from monetary policy to fiscal china is talking about a tax cut for the consumers. what is italy argue about? they are arguing about fiscal spending i would buy infrastructure, real estate that are shorter in duration where you don't have the risk in terms of principal we are about a $200 million alternative manager. we are earning things with cash flow and lots of things around the world have been sold off we have been in a world where

the market has been narrowing and narrowing towards u.s. growth stocks. there's a lot of money in those right now. what we haare saying is this is the way go in this market. that's really from our private e private equity today it's related to some type of correspondent carve out. you guys were reporting on the magnetty and morally process you know i lever which bought out a division from this them. air bus defense business those are the things from our vantage point there is real value for the lps. >> well henry mcvey great to get your insights on a day like this chief investment officer at kkr. the earnings parade marches on ford and tesla having a rough three months but maintaining gains ahead of the tomorrow earnings a preview of those results are next. coming up on "fast money" one top technician says the market bottom may well be very close.

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tomorrow is going to bring a slough of earnings, both before and after the close. in the morning we get results from names like at&t, boeing and deutsche bank. microsoft, visa, ford and tesla release numbers after the bell fill lebeau joins us with a preview of auto make sfwleer let's start off with ford. not expected to be sensational people are saying how ugly will they be bus there are issues overall the expectation is that ford when it reports earning also see a atlantic of about 35%. china sales one issue weighing on the company down 40%. we have talked about this some time but also having weakness in

south america as well as europe. but this man is in focus here. jim hauck a ceo at ford. the big question what does he say about the restructuring plan for the company? as you look at shares of ford keep in mind the stock is trading at 2009 levels this is only the stock in the last year. but you got to go back to 2009 to find the last time it was trading at around 8.59 a share that's one auto story. the other one is tesla it's expected to report what might be a slight profit tomorrow there are some saying it may not make profitability but it will be close if not a few pennies above break even tesla model 3 deliveries have helped the company in terms of q 3 performance. then today the stock got a pop because noted shorl short sell frere credit tron, today reversed course saying plain and simple tesla is destroying the competition. that's all it took for tesla

shares to take off after that. again, tesla reports after the bell tomorrow. if it is a slight profit it will not be a huge surprise since they have said for some time if they hit a certain level of production with the model 3 they believe they can be cash flow positive and turn a slight profit that's the focus tomorrow afternoon. guys >> yeah and of course what a busy quarter it was for elon musk as well up yeks we are looking at the big movers after hours and get you ready for the trading session tomorrow "closing bell" will be right back ♪

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prudential financial, inc. we have new comments from secretary of state mike pompeo and eamon javers has the details. >> mike pompeo saying the united states is going to revoke visas for those it determines are responsible for the killing of jamaul khashoggi, the saudi writer killed inside the saudi consulate in turkey. this has been an ongoing controversy. the secretary of state today here saying though that the united states is continuing to gather evidence and facts in the case they will follow the facts where any lead he says the president is not happy. he is not happy.

the secretary of state was asked specifically if m.b.s., mohamed bin salman was responsible and he didn't give a direct answer to that saying the suns going to continue to look into this matter and gather all relevant facts wilfred. >> eamon thank you very much for that amazing ongoing story still don't get the conclusion of it. e jet streamen javers in d.c we have one minute left to discuss the markets. one thing i didn't ask you yet in the notes earlier whether we see the credit spike if that's a flair. it's not flaring up in a dramatic way it has underperformed a little bit. we had the treasury rally today. and corporate bonds did not follow along it's something to wind chill but not leading the weakness. >> i guess earnings tomorrow, key one perhaps microsoft of a the bell. >> that's interesting because it's one of the big growth stocks that has held up and done its part to support the market that's significant but the texas instruments guide down for the fourth quarter that

has a lot to say how the semi conductors trade in the overall nasdaq maybe see how the market digests that. >> which haven what we sue with industrials boeing is another one to watch. >> bogey saved the day after caterpillar disappointed. >> that does it for "closing bell." >> "fast money" begins right now. "fast money" starts right now. live from the nasdaq market site overlooking new york city's times square traders are the pete narjen dan nathan and guy adami tonight on fast, the earnings wreckage ridges raies as it takes no prisoners process could the sell yofs create the best sells of the year the tesla stock surging 13% bus of something elon just did we will tell you what has ee investors exited it started out looking like total chaos. stocks slammed at the open th