good morning, it is 8:00 a.m. in palo alto at tesla headquarters and 11:00 a.m. on wall street. "squawk alley" is live ♪ ♪ welcome to "squawk alley." i am carl quintanilla with morgan brennan let's get into it. busiest day of earnings. dom chu looking at the markets dow up 280 julia boorstin is here and phil lebeau from dallas,

following tesla and ford earnings meg terrell. >> carl, twitter shares are soaring 17% on top and bottom line, despite user growth falling short of expectations. the earnings of 21 cents a share are 7 cents better than wall street projections revenue of $758 million for advertising. looking at monthly active users, numbers fell more than expected, declining more than 9 million in the course of the quarter to 326 million. 4 million short of expectations. the company expects another mid single digits million decline in the fourth quarter, daily active users grew 9%. jack dorsey says both daily and monthly user numbers were impacted, but the company's focus on cleaning up spam and fake accounts, saying improving the health of the platform is

their top priority, saying it is key for the long term growth of twitter. guys, back over to you. >> julia, thank you. let's get to phil lebeau, he is looking at tesla and ford earnings phil, both those stocks moving higher >> they're moving higher start with tesla you knew tesla would report higher once it reported a profitable quarter and that's what's happened. in the last week, dramatic move in the last seven days average price target, up more than $10 today to $315 two important drivers. elon musk says there's no plans to raise capital and he believes the company can achieve sustained profitability. another auto stock getting a pop, ford up more than 5%, close to 6%. moved after q3 earnings came in better than expected the notes are positive but not quite as glowing as with tesla, in part because a lot of and lists are saying we want more

details on restructuring and those did not come out last night. if you look at the auto stocks, they're all moving higher. this is a sector that's been beaten down badly the last couple of months if you look at the cars eft, it has been a rough month and a half for the auto sector ford and tesla are leading everybody higher today. >> thanks for that meg terrell out of bristol-myers. >> today it has been a mixed bag on earnings. earnings beat, revenue missed. its immunotherapy drugs are coming under increasing competitive pressure from merck. they had a mixed quarter, beating the bottom line, missing on the top the hpv vaccine, and merck

missed they announced 10 million share buy back may raise questions about the appetite for m and a and celgene raised the forecast on the strength of psoriasis drug, that report welcome good news for a stock that lost 30% year to date jon, back to you >> thank you let's get to dom for a look at the markets overall. how do things look as earnings season continues >> as earnings season continues, you talk about the idea we are seeing price action decidedly negative on the sentiment side of things. you look at where market action has been, it is a reversal from yesterday. moves in technology and communication services and retail lead higher utilities and staples, real estate moving lower. as we look at the reason why we

may be seeing a bounce, we could be heading into what traders call oversold condition. sharp move to the down side that doesn't normally happen. to illustrate that, through the closer trading yesterday, the s&p and nasdaq, in the s&p 500 there are only 164 companies that are trading above their long term trend lines. meanwhile, 341 are trading below long term trend lines. again, perhaps some slowing there. and you look at stocks trading within the recent highs or lows, that's something to watch as well 36 stocks within the s&p 500 are within 5% of recent highs, only 36 meanwhile, with regard to the 52 week lows, a lot more of those 169 stocks in the s&p were there. to put it in perspective are things as oversold now as they have been back in february?

according to some at a tidata, not. this chart shows that the number of stocks trading in the normal range or outside normal range is interesting, about 76% of stocks in the s&p 500 are more than one standard deviation away from a 50 day average price it was only 65% back at the desk going back in february something to keep an eye on of why the market is bouncing the way it is now. back to you. >> all right thank you, dom speaking of broader markets, the dow rallying 250 points at this hour after yesterday's massive selloff. the s&p up 1.25% joining us to discuss, sun trust bank chief market strategist keith learner. good morning keith, in a note, you point out that uncertainty is the price of admission to the stock market.

but it never feels comfortable given the bounce we are seeing today, seems pressure. but what should people get concerned about? are there certain signals where you're looking, hey, maybe there's more underlying this than just bad news causing what might be a healthy adjustment? >> first thing to your point, we had the second strongest bull market in history, and during that we had 17 pull backs of at least 5% every one of those came with something, bad news. the after pull back has been 9%. i don't know that this is necessarily over yet, but our work suggests the down side from here will probably be limited in the 4 to 5 to 7 range. the big concerns is earnings now. i think people extrapolating weaker guidance, going back to 2008 if you chop off earnings from 10% to 5% earnings growth, still trading at multiple of 15.5

which is pretty reasonable in this market environment. i think in some ways, investors have overdone it on negativity of earnings. >> as we were getting headlines and fluctuations in markets in recent weeks, a lot of people were saying let's wait until earnings and see how things are. now we have earnings, some concerns on costs cropping up, continuing volatility. what should we be paying attention to >> clearly this year we're getting a decent set of earnings results now. 2019 seems to be where the concern is 2018, 20% s&p earnings growth. it seems like we'll reach that if not to the up side. 2019 are 10% growth. when you have this combination of uncertainty, trade, rates rising, even the dollar has been stronger, markets know at some point this will impact earnings going forward.

there's a lag effect but it is difficult to quantify what percentage we will see a drop that's why we're getting uncertainty now. 10% earnings could be 5% or lower. when you get a little multiple compression on top of that, 2019 is not shaping up to be a strong year that being said, great earnings numbers this year, even with a 5% number next year pretty good, and some uncertainty, rates, for example, even the china trade uncertainty, any alleviation on those two fronts, could see a nice bounce back >> have you changed numbers on s&p? >> we are looking down side to the 10% number trade is 2 to 3 percentage points hit, maybe closer to 7% as we see rates picture unfold, we are probably looking 5 to 7. >> keith >> i agree, 7 or 8%, closer to nominal gdp. a month ago, everyone was

ecstatic on gdp, business optimism, earnings, and all of a sudden we resetting the level. good news in this process which i think needs more time is where we have set expectations a little news can go a long way. >> i want to dig into 2019 a little, too. when you look at what's been pointed to for the correction, it has been global economic growth, interest rates, geopolitical risk, trade and tariffs, midterm elections, heard about peak earnings, but we have been talking about a wall of worry for investors for months why is it coming home to roost in the markets now >> from our perspective, we see october as a volatile month. on top of that, in a midterm election year. and then you put on top of that the last communication we got from the fed, which by the way was in late september when the markets were doing great, when earnings and economic picture was looking better, they were on

an auto pilot path markets are looking at that. there's more uncertainty can the fed be on auto pilot in this environment our answer is probably not there will probably be more data depending on the markets. >> to what degree are they committed to gradual rate hikes and are they not >> i think to some extent december may be in the bag, but i think at that point they have to revisit even powell himself said every meeting, one decision. even though we have this plot out for three rate hikes, really i think it will be data dependent. >> the president keeps poking the fed. does that become less of a problem in 2019 or more of a problem? one line of thinking goes hey, if the economy continues to be strong, the fed has to raise, maybe it is not a big issue, or maybe it is. maybe the more the president does it, the more issue it

becomes. >> my best guess is the fed remains independent. allen greenspan said to put earmarks on. if you start slowing economic growth and they go on this path, that's the risk the market is concerned about. to the point, right now, seeing inflation trends soften a bit, oil coming down, too i think december is in the bag probably march see what happens after midterm elections, what policy is out there, what's happened overseas. i don't think they're automatically raising four times next year, especially if data slows down a bit >> all right we'll see. thanks when we come back, a lot more on earnings some big tech companies expected to report tonight, including those two, amazon, alphabet. you have to watch at 4:00. deeper dive into twitter which was leading the s&p this morning. and countdown to the european close in about 17 minutes.

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unstopand it's strengthenedting place, the by xfi pods,gateway. which plug in to extend the wifi even farther, past anything that stands in its way. ...well almost anything. leave no room behind with xfi pods. simple. easy. awesome. click or visit a retail store today. it is a tale of tech earnings microsoft, tesla, twitter beat expectations last night. is this the start of a turnaround for tekch in a volatile market. henry blodget joins us at post 9 alongside mike santoli welcome, guys.

>> great to be here. >> you have been calling for correction for so long do you believe there's more? >> if i had to guess, yes, i would say there's more, but i don't know >> are you impressed with the results we're getting? >> in tech it is terrific. all of them. tesla, hats off, given the distractions in the past quarter, great to see that >> mike, obviously it is leading us a little higher. >> it is relief. i think there was a chance that the market was going to be reminded that these companies, not a lot has changed. i think the challenge is if you look at the valuation, if you had an up side overissue of the tech stocks into january and into the spring, if you're getting an equivalent to the down side extreme, you're not there. you're about the five year average for a forward pe you're not cheap yet but less expensive. >> that puts it in perspective on the flip side, if you're buying into the idea as it seems to be a narrative emerging in

earnings season that we have slowing economic growth on the horizon, don't you want to rotate back into secular growth names? >> i think the valuations for a lot of tech stocks are not wildly out of whack, 20, 25 earnings you go back to tesla, that's the big issue for me with the stock. even with the company tremendously successful coming forward, reasonable to come to $200 fair value big range on the street one of the most bullish analysts, he has $91 of his 291 price target in a business that doesn't exist yet. i mean, come on. that's where you have to look at the valuation and say there's plenty of down side left there. >> mike, how much should we read into the types of moves we're seeing in stocks that have had surprises or misses, depending how you read it, amd had been a darling. it is down big this morning after revenue miss twitter is up big.

a lot of its earnings up side is based on a one time gain is there much to read into based on short positions or how much is priced into the moves >> i think the general field position of where the stock was before hand, but i also think we can't talk about tech without separating out semi conductors and related hardware that kind of led the rolling over of the overall index. i think it is still suspect now. bounces are suspect in semi conductors because i don't know what it will take to get assurance that the cycle is not falling off in a steep way that i would separate out. and twitter struck me as a company specific story it is no longer about what percentage of social media eyeball hours is twitter getting, it is its own thing people say monthly active users are down because they're cure ating usership and shuttling between a 20 and $40 wild range

of stock price. >> all that matters is whether advertisers want to pay up 29% more do. >> eventually the size of user base and engagement matters, it is a leading indicator how much revenue they can generate from it the big problem with twitter is expectations got absurdly out of whack, people thought it was the next facebook. it was always a niche product. the good news for twitter is there's nothing else that does what it does if you're into the news, it is the best way to follow the news. there's always a segment of the population that's totally into that twitter is great for that. i think they still have a defensible position. >> to that point, we have seen twitter in past quarters fall because they missed on monthly average users. we saw numbers come down this time around. they fell lower than the company's own expectations does this mark a turning point >> i would say with twitter they have more cleaning up and

reducing to do twitter is still a tough platform, often unpleasant there are arguments to make they would be better off if they force folks to real names, had to comment under your own name you could do that and see a big reduction. as long as a core user base, people that are addicted to it and a lot of people are there, then they have a good business. >> and twitter from day one was kind of dealing with a whack a mole problem it wasn't like facebook where it was a denial, said you had to use your real name, twitter was like this is what this is from the beginning. there wasn't a reckoning as there was with facebook. >> how are you thinking about leverage today budweis budweiser cuts it in half, netflix, they require capital from the markets >> it is becoming incrementally

stingy the first couple of weeks, everyone pointed to credit markets and said credit is not flaring up kind of has the last few days, it is following the equity market to weaken a bit but no, i think that the absolute level of yields matters, even if you talk about credit spreads are maintained, the absolute level matters you're back in terms of low investment grade corporate credit, paying as much as you were at the heart of the junk bond crisis in early 2016, so that knocks people out of the box. makes you make capital structure decisions. >> folks like tesla, the equity market is open and they have an extraordinary equity market cap. any chance they need cash, elon musk should come running it is still open >> did say it was possible last night. by the way, session highs this morning up 359 gets us more than half of yesterday's loss >> i think the quote easy part was taking back the final hour,

just complete trap door we saw yesterday. that was probably 1% of the s&p move so we got that back. i think we're fighting out the levels that we really were at a couple of days ago, too. >> let us remember, if this is a big turn and we go into bear market, this is exactly what it looks like you have big down moves, everybody panics, and then monstrous up days. everybody is like thank goodness, it is not happening, pile back in, and boom, another fade >> and looks the same way. we're definitely in the mix. henry, mike, thanks. nasdaq up most of all, 2.6%. and coming up, stocks near the flat line for the year losing all of the gains since january but now surging this morning earnings are a huge part of the story. the story continues today after the bell amazon, alpha beth, snap, intel.

"squawk alley" back after this break.

welcome back to "squawk alley. look at the dow now, session highs, 379, about 1.5% higher. 24,965 cutting losses, steep losses yesterday by more than half. what's leading the way higher, microsoft, intel, and cisco. seema mody has the urn close. >> a positive -- european close. >> a positive close, bouncing off 18 month lows. the big talker, ecb policy meeting, keeping rates unchanged. marching -- mario draghi plans to end the asset purchase program by end of the year earlier in the session it was down a quarter percent right now down two-tenths of a%. sticking with currency,

turkish lira rallying against the dollar voting to keep the benchmark interest rate on hold after a 6% interest rate hike last month. a number of key earnings reports in focus, wpp plunging 17% after reporting slowdown in client spending sales in the quarter fell 1.5% a steeperdrop than analysts anticipated. that stock is posting the worst day in more than two decades, down 17% meanwhile, more bullish news for european retailers puma lifting outlook for the third time after reporting better than expected earnings. saying costs have risen slower than expected, boosting profit guidance that stock up about 6% there are some bright spots, especially on earnings >> thank you seema mody. push and pull between global trade worries, credit fears, rising rates

then strong earnings keep coming out. s&p back to 2703 to sort through it, bring in technical strategist james paulson, investment strategist jim, i am anxious to remind viewers you warned about a downturn way in advance of this one. now i look at next year's look 15 times 160 on the s&p, suggests that you think we have more pain to go through. >> i think the problem is where is goldilocks for this market. if you're a bull, what are you rooting for? if we get growth that stays fairly strong, we've seen what that means earnings have been fantastic it hasn't done anything for the stock market because we're in overheat mode with 3.7% unemployment rate. if we slow and drop more than wall street expects to 2% growth or something, i think 2019

earnings numbers go away if you have to revise them, and recession fears will spike given how late we are in the cycle it is difficult for the market to find a goldilocks if we do a lower valuation, then it can withstand higher yields and growth with higher yields, and i think we have to get to those levels i think down around 15 times or something like that on slower growth probably in order to sustain the bull >> so you're looking at maybe a touch near 2400. analysts aren't bringing down numbers like that yet, at least not yet. >> look, we're looking at earnings those are pretty good. the question comes down to what multiple do you put on them. we're in the camp of rates probably won't go up much higher than now global rates are trending lower, they're not following the u.s.

higher we think our rates are anchored, pes might be -- general area at year end, you trade 17, 18 times. we think investors find value in a world for 3 or 3.5 on the ten year. >> i want to dig into the idea of slowing economic growth what signals out there are suggesting that to you now are you looking at housing, bigger selloff in transports versus the broader markets is it something else leading you to believe that? >> yeah. i think the biggest thing for me is we have been fascinated with fiscal stimulus. but what it covered up is a massive monetary tightening that's been put in place for the last 12 to 18 months we doubled yields on the entire yield curve. yields have come up overseas as well we flattened the curve dramatically money supply has fallen in half from 8% to 4%. those are significant monetary tightenings that eventually with

a lag lead to slower growth. to your point, there's other indicators cropping up look at the trade impact getting worse and worse, starting to impact growth. look at auto look at housing activity and durable goods in general, look at the underperformance of cyclical sectors, including consumer discretionary and financials, industrial, some leading sectors that would be doing the best, and outperformance of defensive. i think it is really interesting we are fascinated today with technology and earnings and great story of faangs, and yet as it closed last night, since january 3rd you could have matched or exceeded performance of the s&p 500 technology index with the boring old utility index this year. >> right >> it is amazing that's happened >> yes, indeed i want to mention the dow is up more than 400 points a few moments ago, it is now trading

around up 391 points the nasdaq up 190 points itself. you say that the risk adjusted opportunities elsewhere in the world are starting to look good based on the type of run we had in u.s. markets. where in particular? >> sure. we like emerging markets start of the year they were quasi tech plays, people flokckd to the samsung and alibaba of the world. right now, trading about 12 times earnings if some trade issues resolve as we expect to the positive, if you get past midterms and some sentiment improves around u.s. politics and markets steady themselves leaving emerging market representing a good value for investors. they are earlier in the cycle. >> we're getting some back today, though taking us back to yesterday afternoon.

thanks we'll talk soon. let's get an update from sue herera >> hello again, carl hello, everyone. here is what's happening at this hour law enforcement officials say the suspected explosive device sent to robert deniro may have been in the mailroom a day or more before it was found investigators say it is similar to other packages sent to top democratic leaders and cnn. turkish media publishing a security camera image allegedly showing a vehicle belonging to saudi consulate scouting the forest on the outskirts of istanbul the saudis now say his murder was planned. china's defense minister condemning comments by vice president pence, saying he has severely undermined relations between beijing and washington earlier this month, pence accused china of interfering in the u.s. midterm elections to undermine president trump's

tough trade policies and residents in northern mariana islands are bracing for months without electricity for the strongest storm to hit the u.s. this year the super typhoon crossed over the territory in the western pacific ocean earlier today. it has been a bad, bad weather year that is our news update this hour, guys back downtown to you jon? >> thank you, sue. coming up, chip maker amd taking a hit after reporting a weak outlook the stock down just over 14.5% and look at how other chip stocks are reacting as they suffer the biggest drop in ten years. "sawaly"s ckext.

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welcome back take a look at amd the company reported a revenue miss >> it is important for people to understand what's going on in our business so when we look at the third quarter, actually lots of our businesses did quite well, the client business did very well, data center business did very well we did have a problem with the gpu, particularly the channel. we had elevated inventory levels going into third quarter, and those ended up being larger than expected, but when you look

overall at the business, actually we're happy with how the business is shaping up, particularly around new products. >> mitch steefs is with us and good morning to you. comments from lisa su, is this a one off quarter inventory issue or bigger read through to the broader sector >> yeah. for amd in particular we think their big issue is crypto gpu, they were used for mining, huge first quarter of the year, and we're still feeling the after effects. we think sales were 400 million higher in the first quarter. we worked through about 250 of that overhang. but there's still another shoe to drop. we think it could happen in the first quarter for them. >> you think it is bursting of the crypto bubble playing out in their results? >> that's right. in the intermediate term for

amd, we think they have one more quarter of pain to take in the first quarter, they may miss that guide after that it is a different story and a lot of stuff that lisa is talking about we're quite positive on. >> mitch, what do you take in terms of read through to intel the stock is up. there was expectation that because of issues at intel, amd would take more market share doesn't seem like that's the case this quarter. >> i like the other side of the arkt they're gaining -- argument. they're gaining sequentially, and pc client size which lisa referred to when she said she had good results, crypto currency, i think they mismodeled that. but when you look at that, q 1, 2019, amd comes out with a chip that's cheaper, faster, smaller,

better, and probably gain shares in q 1 i think q4 and 3 is a wash >> chris, what's the overall semiconductor narrative? lamb research had an optimistic read through to 2019 texas instruments very different. amd, i guess you put that aside, they're a challenger in the market do you need to wait for intel to see what's happening in chips overa overall? they have their own issues. >> for broad based semi, we have seen lead times for the sector increase in the past two years, likely with the increased lead times you have increased inventory across the supply chain. right now we may have a demand blip, but we have compounding that demand blip, we have inventory issues and it could take one or two quarters to work through that for broad base

>> i had to laugh. it wasn't that long ago, a few months, people were writing notes how it flattened out >> surprise. >> before i let you both go, mitch, smh, semiconductor eft, worst day in ten years have seen a selloff in this part of tekin general what do you like now what would you buy >> what you have to do is go to eta and katings. you want to own amd in q1. i think that's going to see some gain on top of that, you own amd around q1, ideally the right time frame. >> thanks for joining us when we come back, tech

earnings have begun. we will layout the stakes as the market has punished certain companies that put out strong numbers and guidance "squawk alley" will be back afr isui bakteth qckre

i am scott walker. morgan stanley mike wilson called the correction in stocks, now he is back with us to tell us if it is time and safe to buy

again. and tech on deck with big earnings tonight, will amazon and google be enough to turn around that sector for real? and unusual activity jon najarian that could cause it to pop and drop as we go to break, hugging close to highs of the session. we hair from the fed vice chairman will he give the markets soothi soothing commentary. back in a moment so no matter what you trade, or where you trade, you'll only pay $4.95. fidelity. open an account today.

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we have some big tech earnings, capping off the busiest day for corporate earnings josh lipton is on alphabet >> jon, here is what the street expects when alphabet reports. revenue of $34 billion that would suggest jumps of 9% and 23% on the bottom and top. alphabet has taken it on the chin in the green now, down about 10% so far this month. sun trust is positive on the name, points to strong demand for search advertising, rebust youtube -- robust youtube consumption, and attractive valuation. also in focus, traffic costs,

tac, payments that google makes to partners like apple to direct traffic to its properties. scully notes the tac rate as percentage of revenue has improved in the last several quarters, and regulatory challenges in europe google will stop bundling apps on android phones in response to the eu fine. a question for investors, does that impact the market share there. and what about google cloud? mark mahaney is impressed with google and cloud offerings this is a big tech trend, benefitting rivals, aws and microsoft azure. scott dewitt highlights other areas for investors. alphabet's china strategy and any details on ramos ramping commercial availability. >> thank you for that, josh. another big faang name expected to report, amazon they could face head winds from

rising postal cost and increase in minimum wages stock up 5%. we have a preview. >> and those two things, wage and postal inflation are making investors a little nervous november 1st, the company

5% now, helping make up some of the heavy losses this month, year to date amazon is up nearly 50%. guys >> all right thank you, deandry. as we get ready for those reports, we want to note a company that reported last night, microsoft, up about 5.5% today. this reaction to me is interesting. because microsoft was one of those companies that stock-wise could never catch a break.

kind of the position that ibm is in now even the good news, you find some bad news in it. in this case, there were a number of good things about the quarter, cloud growth continued for example. but azure's growth wasn't as strong as some people had hoped. the office growth was pretty strong there was an acknowledgement that they have price increase coming so that pulled forward some demand and yet the stock is still getting some pop it had taken a bit of a dive earlier, in a way it's back where it was a couple of days ago. but interesting action given some of the names it's up against. in terms of the dow's rally today. azure to put it in perspective, it's a mind-blowing number is grew 76%, year on year, but that represents a deceleration. 76%. >> a dramatic land grab happening right now across cloud. microsoft is a major infrastructure player along with amazon we're waiting to see if google is going to give enough cloud numbers to put itself in that category as well but no question that

satya nadella not only has gotten that infrastructure cloud in place, but also has the traditional mod toll play with, right? there are some companies that don't want to go all in on cloud. microsoft can play both sides, doing better at that than oracle is as we see in the action in that stock well, definitely one to keep an eye on today. we've got as we head to break, we're going to look at those broader markets right now. the dow is up 378 points right now. the s&p is up 46 and the nasdaq is the big resq 2%.rmer, up.7 mo "uawk alley" after the break.

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your screen. the call is free. and licensed humana sales agents are standing by. so call now. stocks near session highs, dow's up 375 nasdaq up almost 3%. and the comments in the next hour or so look at the one-month chart of the broader index still an ugly october, we don't need to tell you that. at post nine this morning, art carbon floor director of operations is with us. by the travel day after the american league takes a 2-0 lead. >> i think we need to revisit that usually does bottom out in the end of october

one way or another and impressive rally but no volume. >> is that, that's important to today. >> what you're saying is that the sellers have just walked away and you know, the buyers are in there. but this is no stampede. you know, they're not chasing it, so it's really fascinating change of mind overnight now could be that the shanghai held up, again the suspicions that the government was involved in helping that hold up. but we're here and i'm impressed also that with the light volume, you haven't seen much of a pull-back how often do you get those spurts and with no follow-through, they pull right back it hasn't happened yet. >> what if clarida comes out and rolls back any semblance of restrictive policy in terms of his rhetoric >> well you know, it could be

that draghi is getting criticized now for saying that he's going to go forward with the tightening so they may be there i, nick kolas from data trade pointed out that in the fed handbook they used word "tariff" 51 times, they must be worried not just about the american economy, but the global economy as a whole >> art, what about the volume that you're seeing in some of these post-earnings trades in big names? does that tell you anything? is that something you're paying attention to >> it is to a degree but you know, it's been fogged over somewhat by very sharp moves that we've seen here before and to separate them out you know the earnings aren't, aren't having the effect that they normally would. you know, people are caught up in the bigger picture of where were we going and where are we now. >> and to that point, and i know you just mentioned how many

times the word "tariff" was used in the beige book yesterday, do you think after what's been months of investors in the market sort of shrugging off the possibility of trade war fears, that this is really essentially what's coming home to roost when you look at these stocks and how equities are playing out right now? >> i think concern about trade wars, certainly underscored the selling that we had. i mean there were other aspects to it. but it was clearly that. and again, the real hemorrhaging began after shanghai was badly hit. so you know, the foreign influence was clearly there. it was the dominant factor in the sell-off >> one last thing. we have not mentioned these suspicious packages all morning long does it have any effect on sentiment, people have tried to draw lines between what ebola did to the market in '14 >> i don't think it's anywhere

near, thankfully no one has been hurt by it so the market doesn't take any sense out of that. if they thought it was going to change the election, they might see it but so far, no steady pattern. >> art, thanks so much glad to see the holliday ties are back let's get to the judge for the halftime story i'm scott wopner, the street strategist who is call the correction says it is not over yet. and is here to debate your money's best move. it's 12:00 noon and this is the halftime report. bottom or fake bounce? morgan stanley's mike wilson warned investors this was coming in several notes august 3rd, the nasdaq could plunge 15% or more august 15th, correction imminent september 12th, multi-year bear market october 8th, tipping point today, he's back to tell us what he thinks happens