>>. >> lots of trading >> you brought toys. what are these >> my props for check please they are wallets >> chewing gum in merging markets. >> closing bell starts now it is time for closing bell. strong gains at the hope fading throughout the day it is a critical week for apple. we'll speak with who just initiated the stock and says now is the time to buy >> ibm paying a 60% premium.

we'll debate whether they overpaid and who others could be in the works tariffs have been a hot button topic. we'll talk about the corporate impact of president trump's policies on trade. closing bell begins right now >> the dow is down about 200 points loo points losing what was a pretty big rally. all of the sectors opened higher >> wall street saying they are in correction territory.

it is where the economy may be headed >> kate is here from edward jones. neil is here matt and cnbc is always with us from the cme group the economic signals, does it justify some of the moves we are seeing in stocks >> yeah. probably tariffs hurt the existing sort of stock of assets that's what the stock market reflects it is much more than it will be on theeconomy. >> it is fiscal stimulus

it is important for investors to remember that the momentum is pretty healthy >> it is positively slow conditions look reasonably healthy. >> this has been a bad time for the equity markets i think ultimately decent news can help turn the markets >> the equity markets should come around. >> what caused the big reversal? >> i think it is investor psychology or trader psychology.

>> it is an exaggerated move we look and they are far performing on the downside to the s&p. it shows how traders want to be. >> there are almost no corporate buy backs. you also have the end of the year for many. many mutual funds so you may have tax laws selling as well. do you think it will be representative of the next two months or is this just kind of that odd period of time in which what is going to be a strong ek with i -- equity market. >> between now and the end of the year is awfully short term

i think more importantly for most investors you need to look a little further ouchlt thet. i think investors really are reacting and sitting on the edge of their seats it gives you direction over the next year and it probably doesn't and that's really why we are seeing a lot of ups and downs in the markets and such sharp moves. >> what is the bond market telling you? neil mentioned we have a positive yield curve you're not seeing any dramatic concern are you? >> it is what's going on in equities is an vent to pay attention to but an event that should have an outcome over time that doesn't ding investors in a huge way i think it would be much less

buoyant with regard to interest rates. as we sit now on the low yields of the day we are higher only by a basis point or two on most and as we sit at 308 we are what 14 basis points away from the high yield close of seven years i'm not saying that things can't deteriora deteriorate further. one would think that the economy may be idling a little less quickly. it is to come up with a bottom we can all live with the notion of losing strength and several sessions is not a good sign that we will come in tomorrow and everything will be all clear.

>> something you talk about but you never saw it it was coming. people said that's the reason stocks were selling. we are back at 308 suddenly the interest rate goes away. >> i think so. there's probably a big difference between the equity selloff. you know, it looks like -- >> how does the fed interpret this selloff then? >> that being said the president recently made news about calling the fed. it is something we have to keep an eye on. it is really the escape. it has an impact on the impact for inflations

it will not only neutralize but it will introduce downside risks to goods, consumer prices. we know it is stable if you look at break evens this is something that should get the feds attention and i think over time actually get them to, you know, skip a meeting or two >> so it came out today 2% that is on target. i think it vindicates what they have been doing. >> it has been terrible. look at it over the last three months look at it over the last six months it's not consistent with 2%. we have reports every day talking about how rents are slowing in many markets across the country. so i think there's a sort of view that inflation will take off and that it is sort of kinked up these lower rates of unemployment i'm not so sure it is the case i'm not saying don't raise

interest rates but they don't need to be reiterating that we will go three times, four times next year. they should be data dependent. right now it doesn't justify the current pace they are telling us they going >> sort of the president's message said in a different way. >> thank you all we have a market flash now on boeing we have the details. >> that's right. we are tracking this very closely. boeing shares near session lows down more than 6% on pace for the worst day of february of 2016 a number of defense names leading industrials to the downside heading into the last hour of trade. finally take a look that closely watches these defense names. it is on pace for the ninth consecutive day.

a lot of it going on with ongoing concerns around trade. >> all right thank you very much. all right. turning now to the big deal that rocked the markets this morning. ibm announcing the largest ever acquisition buying red hat for $34 billion at a 60% premium josh is back with more on this massive deal, josh >> brian, ibm ceo has bet big but this is her biggest bet yet calling this a game changer. >> for us it's all about resetting the cloud landscape. this is to create the number one company that will be the number one high braybrid cloud provider >> it is to capitalize on what's known as hybrid commuting. they store some data mt. public cloud. other information in their own

private data centers so will investors be as excited? that remains to be seen. the stock is in the red today. it was a fairly expensive acquisition. they also say a deal size like this is really unprecedented there is plenty of competition in this market too you have microsoft and dell. back to you. >> thank you very much we have had other deals around cloud commuting this is the biggest. will it spur others to buy a cloud buying binge let's bring in joel. i have to imagine some are happy a premium to the all time high of red hat stock in your opinion was it a smart deal by ibm or a desperate deal by a company struggling to find

its way? >> in my opinion it's a desperate deal by a company that missed the boat for the last five years i'm surprised that it took them so long. >> could have from 50% two years ago? >> absolutely. >> but does it change ibm's trajectory when it comes to the cloud business >> i think it's a piece of what they need. the question is can they execute? it gives them one of the pieces. as you mentioned, as josh mentioned in the intro they are way ahead of the game now and now ibm is playing catch up. it is yet to be determined whether they can absorb this acquisition. it gives them one of the pieces they probably need to become relevant in this space >> is workday now in play? is it now this play? >> in my opinion we are in a

cloud race right now they all in play red hat represented one of the few companies that had scale, more than a million dollars in revenue. without having knowledge i would suspect microsoft were involved or looking for assets involved i think workday is one of those assets service now the is one of those assets that gives you the scale that can propel you into this business in a meaningful way >> are there room for multiple winners? with amazon web services that's pretty big lead. >> it is a huge lead again, you either evolve or die. this is ibm's stake of the grounld. if they didn't involve their

cloud business we would have seen ibm, you know, lead a slow long bleed so i think other companies, again, that are behind the 8 ball, oracle being one >> why now though? cloud computing is not new hot mail is effectively cloud computing. we should probably kill the term because everything is the cloud. who is running native applications anymore why is it suddenly now people are getting religion around the cloud? it will take a long time for the move into the cloud environment. there is a lot of legacy to have

to be moving over. you have to play catch up here unfortunately. there are companies ahead of the curve. microsoft has done a phenomenal job in catching up and some other assets other players will have to come along and play a game. it would propel somebody and there are afew that would make a lot of sense in our opinion. >> i know these are companies jim cramer has talked about a lot. >> thank you very much we have a 600 point reversal today. let's bring in bob the market was sliding a little bit before that >> it is really two sectors that

have been a problem today. banks and health care have held up relatively well industrials had been weak even after the open >> it is not necessarily surprising comment but the market just drooped on that. we were already going towards the flattish area. everything heads south it is united technologies, your 3ms. all of these global industrials. the second was fang, particularly fang and semi conductor names there had been stories about a new tax in the u.k. that had been weakening amazon was drooping going into

the -- just after the open you can see the fang names as well today most of them down about 3, 4, 5% there has been a small group of beaten up names that have done well today retailers have held on very very well remember they had generally been down since the second quarter earnings the other would be autos and building related stocks. they too started getting picked on thursday and friday generally autos up today some of the home builders also up as well that's small group we are sitting near the lows of the day. >> what is amazing, it is hard to believe, half the douw is actually higher. >> that is on a very very specific story all of the aerospace stocks are down on that particular story. so we have a situation where anything where you can press the

market now, even a head line like well if things don't go so well maybe we'll have additional tariffs. it would make sense given the rhetoric coming out of the administration that's enough to enable people to pull back the buyers pull back the volume is not particularly heavy here the buyers just step back and the market drop. it is a very important distinction. we didn't see heavy selling. we saw buyers step back. >> amazing half the dow is high are we'll talk more about it in a couple of minutes. all right. a shocker in germany merkel says she will not seek reelection we'll talk about what that means for europe's economy and beyond. and what impact are tariffs having on corporate earnings we'll break down hundreds of hours of earnings calls. we'll bring you the highlights

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all of that has slipped here we are now near the lows of the session of the day as bob was talking about it is where the big drag was talking about those were leading again this morning this morning as we saw buyers step into some of the most beaten down classes and sectors and they are selling off here in the afternoon. it is certainly weighing on facebook and apple is lower as well both of them have big vents this week with earnings for apple on

thursday product event tomorrow and facebook earnings tomorrow mike so amazon is really the biggest drag on this market and has been all month. it is on pace to have its worst monthly loss fell below $1,500 a share earlier today. it is holding up above there nonetheless, amazon is back on september 4th achieved that milestone evaluation of $1 billion it has lost 260 billion or so. we do have some stocks in the green. >> tesla holding up on the day

cloud names seeing some interest with that acquisition. back to you. >> thank you very much let us not forget when facebook came out with last quarter earnings it lost 120 billion in market value in 24 hours certainly one of the factors leading the sell off is fears and their impacts on earnings. steve has been digging through all of the major corporate earnings we have seen. transcript by transcript and joins us now >> we know a lot of companies were talking about tariffs we looked at all of the called that happened. we found 35% mentioning the word tariff in their calls. 65% did not. 45 companies, you can see them here from harley-davidson to honeywell, ford, costco, a broad range of companies mentioning

tariff in a negative way most had better results because they pulled and 14% mentioning t tariffs. some of the quotes we got ceo said i would expect pricing would increase next year if these tariffs are in place it gets passed down to the consumer in one form or another. we heard an awful lot of that. dana said we thought it was a $10 million a quarter. now with tariffs we expect it to be closer to $12 million, 13 a quarter and others if the tariffs go up now in a separate survey the national association finds

77% of companies said they haven't changed their business in response to tariffs but 23% had and most of those were negative you can take a look at some of the things they answered 10% delayed investment the big place where we saw this, the goods producers, about half wage prices. 38% delayed investments. back to you. >> so that's narrative out there. it goes like this. companies are feeling the impact of tariffs first through cost increases and we are not seeing it really show up in the real economic data. the u.s. economy is pretty strong and we can absorb it and brush it off is that right? >> i think that's right. it is hard to know we have never had this before. if it remains limited 19% think it's negative or saying something negative about it i think it's manageable.

i think the next round and the next round if you wouldn't mind this is this one here, delayed investment raising prices, i think it's a one time event delayed investment, remember the whole tax cut was about fostering investment this is the one that could hurt at the margin. it is the one i'm most worried about. >> got it. we will watch that >> steve joining us now is neil ferguson, senior fellow there. nice to see you. >> good to see you too >> we have a lot to get to but let's get to tariffs there is word that president trump is ready to go all in if they can't make a deal at the end of november at g20 how do you see this all playing out what's the end game of this trade war with china >> it would be a foolish man

that tried to predict his next move there is a scenario which he surprises us all by cutting a deal when they meet. i must say i think it's a low probability scenario for one simple reason. it is working as a tool to put china under pressure i think the key point here is not to look at this too narrowly we have to see it as a strategic measure. the trump administration has moved from focusing on manufacturing jobs and going to china to more broadly focusing on the strategic challenge china poses to the united states it's why president trump will continue to apply this pressure. he is getting evidence that it is having an effect putting china under real pressure. if you think u.s. stocks have come under pritz is absolutely nothing with the pain inflicted on chinese investors

i'm not surprised to hear president trump is talking about keeping the pressure up from a strategic point of view. he may have found china's weak spot >> yeah. and here is is the dirty little secret around our trade with china. we buy a lot of stuff from them. they don't buy a lot from us they do buy scrap metal and chicken feet, things like that it is one-third the economy of maryland president trump understands this my question to you is what's the goal what's the wind? how do you -- you know, you win this or you win that the president loves to talk about winning. how do you win this? >> that's a great question if you had gone back to the earlier part of this year when the trade war began many people in china thought that a win would constitute reducing. trade negotiators went expecting

they could cut a deal on that basis offering to buy more stuff, more products from the united states. but they were rather shocked to be told by president trump that it was not enough and there would need to be more concessions including made in china 2025 moll ppolicy it is with all kinds of subsidies and things that are not compliant with china's world trade obligations. i think we have seen that the president is not just focused on what used to be hi preoccupation which was try to go bring manufacturing back it is now a broader thing in which he is trying to apply pressure on china to slow the chinese challenge down in that sense the definition of victory has changed. it won't be enough i think just to reduce the bilateral trade deficit if it ever was we have to see some sign that china is going to reduce the

subsidies that it pays, the technology transfer that engages in some of it. it is hard for him to con seed i don't think it will be over soon it is a position which he can make that kind of concession without losing face. >> so it looks like it will be a while. we have to ask you about europe. what do you think the biggest impact will bring? >> merkel seems to be imitating the cheshire cat she is stepping down as chair of her own party. she wants to stay on as

chancellor i would expect this could be gone by some time next year. i can't imagine her being chancellor beyond 2019 the gig question is who will be her successor? it has big implications. if you're a fan of the french president you want somebody to come into the job who shares merkel's vision. i think german opinions fundamentally shifted iaway we have a vacuum at the heart of european politics. it will continue to be the case. >> i hope you're right you written about war many of times. we have got far right candidates that came that close to winning. we know what he did in france. we see what's happening in

germany. ultimately how does this end does it simply go out of vogue and we replace leaders at some point in time or does it end in other ways >> i think it is important not to confuse populism with fascism. i don't think it's necessarily a disasterous thing. i think there are good arguments that ordinary people felt that mass migration and indeed the increasingly financial globalization. i don't think it necessarily is some kind of fast track to world war 3. i think it's a mistake to assume

because politics deviate from the politics that so many political establishments favor that we are heading for disaster i think the most likely scenario is u.s. china relationship go frs trade war to cold war. notice the word is cold war. i think the probability of war in europe is extraordinarily low. the only real thing that could cause a conflict would be if put dp putin decided to go into the balt baltic states. >> thank you very much we appreciate it time now for cnbc news update >> hello everyone. here is what's happening at this hour the man arrested in saturday's mass shooting at a pittsburgh synagogue made his first appearance in court in a wheel chair and handcuffs. he will reminuain in jail witho

bond he is accused of murdering 11 people deputy attorney general says hate crimes in america are seriously under reported he is asking for help to get more victims to report those crimes >> department of justice announcing the launch of a hate crimes web sietd it is a portal with information about all of our resources law enforcement officers, prosecutors, members of the public can readily find information on our web site about resources to prevent and prosecute hate crimes. >> the kodak luster returns to florence, italy. it is the world's most expensive book bill gates purchased it for nearly $34 million it contains his ground breaking thoughts and theories. you're up to date. that's the news update

i'll send it back downtown to you. >> all right see you next hour. thank you. energy stocks gets hit hard. let's send it back for a look at the biggest energy movers. >> a big reversal. the dow swung over 700 points. energy is a big move that we are seeing things like chevron and exxon mobile are down as much as 1 to 6% in today's trade oil closed down about 1% in today's trade. gaining ground now at ability 97 near the highs of the year it's wofrt pointing out that the s&p is already in correction territory. with today's losses it is falling deeper all names and constituents are 10% -- are trading down 10% or more from the recent high. so only one area you're seeing a lot of selling >> thank you 24 minutes to go before the

closing bell the losses are accelerating here the big gains we saw evaporating and leading way to losses. technology leads the way low are. dow is down more than 400 points right now. >> yes it will be a 700 point swing day unless things change we'll have much more on the sharp reversal and how financial advise sow sores are viewing this boeing is down nearly $30 a share. we are back with more right after this

all right. welcome back to the closing bell i don't like to use words like dra mat ilk but there are no way around it. we down 400 points so more than 700 point swing for

the dow. the market started to weaken after hitting highs around 10:00 a.m. we got the headlines possibly considering another 250 round of tariffs around 2:00. that's when the market really start today slide. >> really technology had began to rollover. that had has been the hall mark of what we have seen throughout october. we have only got three trading days left of the month six trading days until the midterm elections. >> and if there are any losses you might be seeing tax laws selling. it is a very dramatic day. boeing is leading bay large

margin it involved a boeing 737 plane some say it's part of the pressure on boeing it is clear that this is a combination of the market selloff as well as trade tensions weighing on shares of boeing i have had a few people say couldn't it be people are worried there might be something wrong? there is no indication at least so far this crash is related to the 737 max having a design issue or mechanical problem. if it drops after the black box recorder it might be a different story. this is due to the trade tensions >> phil, thank you very much this month we have seen some

volatile swings leaving the s&p down a lot so far in october we would give you a number but we don't know where we would end today. while the downturn may have taken many by surprise concern has been lurking under the market's hood for some time. a survey shows a jert majority advisers showed it would fall back in september. joining us now is bernie charge. -- clark oh to be at a conference of financial advisers today, bernie they may have been worried about it back in september but do you think anybody would think we are having the kind of october that by are having? >> yeah. there is a bit of a buzz happening obviously with the turn around. our study told us clients are feeling a little more anxious about the markets.

i talked about individuals that had not seen a financial crisis. >> what is the level of anxiety. are they telling feem stpeople y in this market >> it is an awful lot about life planning when it comes to what they do. they were for all of those coming out of the difficulties of 2008 and they tripled their businesses at that point in time by helping people think about a life plan and making sure they are setting themselves up by future generations when you start to see markets get a little bit rough like they

th you have to turn it into the deep relationships they have with their clients >> i'm sure people are calling you. they are calling randy they are saying what the heck is going on this is the reason stocks were selling. >> you know, the important part about this is as you think about advisers invesing wisdom and supporting them it is worth trying to create that same confidence we are trying to create that discipline in making sure they planning out for the future. they are not overreacting. we have seen a lot of volatility in the market and certainly overreacting it would not be a right answer at this point in time. we'll have to watch and see as it plays itself out. i know advise ors are meegt with their clients with newsletters

and things like that they are putting out. you may have heard a bit about that i think you may have him ton show shortly and clearly we are seeing ourselves in the last 6 to 18 months it might look like more of a correction in the market i'm not sure if it's a cycle we are talking about but i hope it's more of the traditional ones >> that is the current debate. thank you for weighing in. >> vice president at schwabb adviser. let's go out to bertha >> yeah. large cap definitely the big drag one of the things we are watching is the fact we are seeing across all levels, not just the small caps, not just the mid-caps, all of these are

now in correction. we believe the dow is now joining the rest as the stocks begin to sort of break down and you're seeing real technical weakness take a look. it is the big pull back that we have seen. the interesting thing today is not a heck of a lot of new lows particularly here on the nasdaq. nonetheless the stocks are very deep into territory. they are down some 30 to 40% from their recent highs. a lot of chip names are within that space and e-bay of course with some disappointing read through having come through about paypal and its prospects in the future.

96% have beaten on the bottom line and two-thirds have beaten on the top line. people are trying to read through what will happen going into 2019. what's the catalyst that will move them higher in the moment as we have this real sort of negative move in the market if you look at the four on the s&p, apple microsoft, amazon and alphabet, those stocks are down 3.5, 4, 8 and 6% respectively. i think you coined the term sell them if you've got them.

bizarrely four are higher right now. >> this is the attempt broadly to sort of take down the kind of stocks but more broadly it is the -- market is telling you the two things they care about most is china's slowing/tariffs the other is what's going on with interest rates in the fed all of the aerospace stocks and what happened with the plane crash there. the 215 or so is when we came out with talks about the tariffs that would be added if the talks

didn't go well you can see industrial so your bigger names outside of the aerospace and united technologies, all of those stocks, all of the big global industrials just drooped on that news then of course we had the fangs. all of that stock. you can do that here we have a fang index down here you notice that was lower earlier. there has been fatalks over the weekend about this new tech tax going on over in the u.k so you mentioned some stocks that were up what's happening here is once again value is outperforming growth you're getting consumer names that are better today. energy is one of the value groups that aren't doing particularly better. growth now 1.7

value up .15 of a lot of consumer staples names. a few names are also beaten up this quarter that are doing a little bit better. >> and it's interesting because google doesn't do business we talked about trade in tariff concerns it is hard to link up google or alphabet with the tariff story it is hard to link up amazon it is difficult to make that connection >> that particular story is about the global growth story. again, you're taking down the ratio in the country, stocks, because of the global growth slowing story. nobody knows how big the global growth story slowing really is or how significant it is if there was a significant brae breakthrough you'll see a lot of these stocks turn around

so it is not really dropping they will be up about 10%. the market is acting like they don't believe those numbers. the market acting like it will be 5% or possibly even flattish. that's way the market is acting. >> we'll see you in a couple of minutes. >> we just rallied 200 points off the lows it is down 350 still >> it's hard >> it is a weird day when it seems okay like we noted though, not every sector is down the consumer staple sector is higher today let's get back looking at that group of stocks. >> this looks kind of like a flight to safety only one of two sectors holding onto gains during the turbulent moon month and turbulent day. it includes phillip morris

we'll show you this chart right here the tobacco company with revenues this month. walmart the global retailer seeing gains of more than 6% pretty good stuff there. walgreens seeing some stuff this month. a real lay great month but not all of them are created equal. colgate is one of the wos performing in this sector. a miss on revenue last week. monster also down more than 12%. still other companies having an exceptionally strong month its report showing some of the best sales gains in five years the stock on track for the best month in five years. looking forward investors looking to see whether these consumer giants, if they will keep this growth going dow component, coca-cola reporting earnings tomorrow.

dealing with a trend that are moving away from sugary drinks something to keep our eye on back over to you >> it will be a busy week for consumer earnings. thank you. dow entering correction territory. joining us is chad from washington cross and mark from j and p. consumer staples has been your favorite group s. this what you had in mind? >> yes we have been talking about this all year, you and i. it really has to do with flight to safety global growth issues, exunited states that will decelerate consumer staples as well as health care we are overweight. we believe this will continue into the end of the year bob has it 100% right. it is global growth. >> do you share that view, that

global growth is slowing and therefore stock portfolios need to change? >> i think the leadership of the market which has been technology is goung through headwinds i think tariff concerns are absolutely at the forefront of env investors. the tensions is not dissipating. it will continue to weigh until we resolve that through end of 2018 we are not getting a lot of confirmation in the bond market, that there's any sort of growth scare or anything like that. it started with a fear of higher rates. it sort of stabilized around low are levels what does that tell you for stocks >> i think for the u.s. equity markets it tells you it will be a -- the earnings will come in okayish. the focus is concern about year

two and three on the growth side keep in mind a lot of u.s. multi-nationals are embedded expectations are on the em side. as you start to see china decelerate it is having a meaningful impact on the european economy the reason why i'm mentioning this is the growth sector overall has had a tremendous run. as you see in moderation of that that's high correlation that these growth companies will actually start to under for form value. you want to over perform value would you agree? growth versus value? >> i think it is hard to properly assess when multiples will expand. we have seen great growth. i think that's where you want to be for the long term i think the future of our economy and the future of our renovation is really in tech and

health care. if we have an air pocket that's worry dp some. i think with the kind of things we have seen you do not want to underweigh these air pockets you want to be tech and health care because that's where the growth is. >> there you have it thank you both for joining us. >> thank you let's send it bab over to you for the closing count down as we come back a little bit >> yeah. quite a market day two of them you sbring up a lot. the other tells a story. this is fxi. the reason we are looking at that is you can see when it start today cross that etf began to sell as well. it was weakening as the dow went

on anyway. they all started to flow out watch the fxi as kind of a china trade leader-type story. apple the biggest company in the world. look at the apple chart. down 3 to 4% it is not only very important but also heavily weighted in many etfs. it is something we talked about. they are all very important. maybe that is sparking a sell yuf. the vcr, the reason we bring it up we talked about where not everything is down when you look at this amazon is hugely weighted. etf isn't down that big because some other names like the nikes

of the world, home depots of the world are not performing all that badly bob is standing there. just move over here little bit on boeing right here, you see this? $25. given what's going on it is surprising it would have been closer to 10 million. actually it is pretty modest what's happening is the buying interest pulls back. >> it is so bizarre. we are down 264 right now. we were down 500 points 30 minutes ago. >> yes

>> i don't need to know that's whield >> no. that's -- >> that's not mom and pop pulling the trigger. >> there are attempts to buy the market despite they say we are not sure what the earning will be in 2019 >> and there we go ringing the closing bell nasdaq down with a dow still trying to settle sbl what's the end of the market slowing? all right. >> welcome to the closing bell brian is rejoining us in just a moment i'm here with mike and as we sit

through another volatile day on wall street finishing sharply lower. the dow closing down a percent it was down about 500 points abili about half an hour ago s&p down .06 now closing more than 10% off record highs nasd nasdaq losing about 1.6% russell 2000 down about .5%. technology consumer discretionary and communication services all got hammered. the nasdaq big under performer today. we have some of the moves. >> yeah. >> what wasn't moving over here we had fairly good volume and

pretty much everywhere you look you looking at correction territory for the most part. the sub sectors, chip stocks are in bare market territory it is down about 22% from their highs. overall large cap tech down about 12%. those communication names, those sector down about 14%. bio tech is the large cap or getting close to the 20% bare market pull back as well the big drag continues to be fang this is the move we have seen month to date. take a look at netflix down 24%. amazon is right there with it. amazon today was really the source of the biggest down craft. we saw three times daily average. look at that in amazon the last three sessions it has

moved more than 7% facebook hitting a new low today closing near the lows of the session. another big loser that we have seen that is very much in bare market territory. it is off more than 30% from highs. what's holding us up, the cleanest shirt in the laundry is apple. this is where people seem to pour into. for the most part all red. >> all right thank you. joining us to talk more about the market, kevin but first what happened to the big gains at the open we thought we were going to start the week optimistically. >> we kind of kored the whole

span here today. rallies right now are suspect. if you have a market right now that's kind of wounded and all of the attempted bounceball lances have faded pretty quickly. i do think it made sense today as you have been talking about it was not some kind of a comprehensive washout. i'm not sure it is a good thing. you have all of these trading programs looking for that final flush. today was a day you pligmight he gotten it. they took you down >> let's bring it up if you can. we can't emphasize enough what a bizarre and wild day it was we

closed down 245. the market looked very bad about 30 minutes ago >> by widened out the scales it is in the hands of tactical traitors right now it is basically swinging this around it always happens when you have the market under this kind of pressure five or six weeks into an almost straight down move >> the market is very over sold. we really should have a very strong balance here whether it is the beginning of something more >> they said it is oversold. >> so do huge rallies. >> it is down a lot in a short period of time >> do you think there is work

here apple, mike cr apple, microsoft, google, they are getting toeld sold there a reation which effects is skew of the overall direction. >> i don't think that. no >> no. reverse it they are selling amazon so the etfs go down >> no. it doesn't do that what's the mechanism for which it will take down the other stocks >> you had two stocks for every three down today some of these crazy moves we have seeing. >> volatility is back. i want to defend the structure people can't blame etfs. they are very liquid it can take million of dollars in and out in just a few minutes. they were quite well so the gapping has been fixed by most of the trading systems. i will say one thing about this correction as we all look for the bottom, obviously the stocks

are correcting earnings were good basically two-thirds hilt their revenue side and over 90% hit their earnings i always say about a correction, i'm a bond giechlt a correction isn't over until the bond lady sings. she is not singing yet most have issued debt off of theirbalance sheets. if you thought they couldn't pay back debt for the four year and five year periods end because all of this is coming due, most of these are under seven years there are lots coming due in the next 24 months if you really thought that they couldn't pay it back you would have a blowout in the credit markets. they have barely moved so this correction is not over yet. i like it when the bonds are just blown out, then i know the

toilet is flushed on the equity markets. >> you know, when we bring it up kevin will go back into that can we throw this up here? it is probably the most well known etf. it did not move hardly at all today. it was down .7 of 1% are you watching this to kind of determine the macro sentiment if that starts to get much worse do you have that second level of fear that may exist? >> yes that's my point. the hyg and jak, at the bottom 18% or 12%, which ever you look at, they have single c credits they are the worst of the worst. these are companies that are assumed not to be able to pay back or they can pay become with paper and not crash. so the bond guys who should be

the smartest guys in the room, are not yet convinced that we are getting out of the recession, that the market finished correcting, but they are not that worried until the bond lady sings this correction isn't over. >> all i would say is this correction you also didn't see the credit markets have much of a panic before you did find some kind of a low. you could actually do it the other way. it is not giving you a huge tron worry. it has softened up i don't think that's perfect script that say. >> and i don't wap to put railroads in his mouth but it is that the price and oil has come

douchblt it will give you sort of the starting get to let you no, i. >> these bonds dropped in points that would be the flash. it it would silgal to me an opportunity to buy boechlt credits and equities >> to have no movement in the credit markets as we have 200 days being broken, 30% corrections in mayor names and now have their date moved? mom's lady has his dn.

more seven is better devin boeing really leeing the doe the mole kmarkt fell 15% >> and this really accelerated in the last hour to two hours of the session as we take a look at comments that were circulating and reports that trump administration might be preparing to add in more tariffs. it creates renewed fears that as trade tensions get worse that it will ultimately have an impact on boeing because china is the largest market so the big concern is that ultimately you will see a slow

down in terms of china business. so far for as long as these tariff talks have been going on and tariffs have been put on imported products that kline that - china. we have not seen a big fall off. it has been relatively stable. it has accelerated in the last hour you're seeing the stock went down in the 32 to 335 range. >> still up, double digits for the year thank you very much. the dow closed lower at 245 points 152 points of that was boeing. kevin, this is your favorite stock. are you worried about a trade war impacting boeing >> it has ban narrative for six months since the whole trade war thing started

a crash is definitely a technical issue. regarding tariffs i always say this aircrafts are multi-year they are low to give up contracts. if you give up your pecking order it gets picked up by something else i'm not as worried as everybody else it is partly trade war

the upside of solving ip theft and getting access for all sectors is so huge that the market's willing to take a lot of rhetoric and pain from the trumps andeverybody else. >> long term gain. >> how long are you willing to wait for that? >> two more years. >> okay. >> you're willing to endure a market that may go down for a flat for two years to get out -- >> you know why? i'm telling you why. there are so many companies in america that are in the russell

2000 it seems to be bought in the out. they are on fire and growing cash flows 11 to 14% tax reform hasn't effected them yet. as an investor i tell the administration i don't watch the circus i watch policy keep squeezing heads in china. keep going at some point, and they are having major corrections on their currency, at some point they will want to sit down at the table and watch what happens. you do not want to be there when that occurs. you want to have exposure the minute the chinese blink we'll have a major upside correction >> if you're just joining us you missed quite a wild market swing on wall street

>> let's start with you. >> i think analysts and everybody out there after a really wild swing on the market. when the dow was up over 350 points it swung down below 550 we had a huge axel bragtaccelern we hind me the aftermath we are seeing the safety plays here on the flip side over here energy down almost 2%. technology down 1.81%. industrial down over a percenta -- 1.5% today we'll have to figure out

what happened here back to you. >> all right thank you for laying it out. the possibility of new tariffs against china sparking a big selloff later in the afternoon we have details. what exactly do we know about the administration's plans >> i can tell you the white house is aware of that bloomberg report earlier this afternoon. it appears to have spooked a number of people on wall street today. they insist there are no new developments the president has been saying this since july at least that he would be prepared to impose tariffs on all chinese goods they only did about 200 million. the president that has been threatening to do add visional $257 billion worth of goods. it would be effectively everything think sent about $5505 billion to the united states every year. it would be effectively

everything the president has been threatening to do that since july he threatened it a couple of times in july and september. they say it is always about bringing the chinese not the table and if they do not agree then the president will get this we should be keeping eye on that if possible. it seems to be like a real inflection point after which is administration could mean additional problems. >> what wauld a successful time even look like the are the president has audiocassetted about it and because when you're

staeing property i don't say do goent around admitting it. at the @talkedabout and it would be sort of a put-year project. the goal of reducing the tray-in balance they might say it is enough to pull this off. >> thank you very much >> you bet let's get to the market action and bring in a look at some of the biggest reversals we have seen. >> that's right. it is a reoccurring theme that has been possible. we tracked those names it includes a number of technology names take a look at amazon. it was up about 1.5% it closed down over 6% it is now on track for the worst

month since november of 2008 another high growth name is netflix. it was up 3% and it closed down 5% alphabet similar story closed down about 5% a sizable move far company with cap of $710 billion. another beaten down sector, chips and amd started the day with sizable gains and closed down with sizable losses they say it will continue to shed more light. we had the last fang noim reporting, facebook. back to you. >> all right thank you very much. mike, you have been looking at some of the divergences >> yes >> it is an alarming split today it was flat on the day that basically means if every stock had the same vote it was even >> we said half the dow is

higher >> exactly and 150 points was boeing. >> yes >> as i said before, the market went hunting for the big stocks. they took lot of that away this process has been going on for five or six weeks. a lot of stocks washed out it's not to say that means that real bargain hunters are there a lot of parts of the market are sold out for now >> okay. so you said the f word, flush. some people have been waiting for that flush and it looked like we were going to have it at about 3:15 today should we find comfort in that we came back or maybe almost a troubling sign because we didn't have the washout >> you can also have a very strong rally off of this and it turns out it wasn't the real thing and then some too manies

you get your flush weeks or months down the road if that's what you fleetd. >> i think that wungs the mark moves a long distance people resort the technicaling. right now they are tenuous mark is if i is. >> how much of this do you think has to do with the federal reserve raising interest rates is the market sending the feds a message sneer. >> i don't think it has everything to do with rates. if you look back at history rates are moving up. that's basically what the fed is saying they saying they have to be, you know, careful about inflation, worried about wage inflation or

the economy getting too hot. everybody is hoping they stop they are worried about inflation. if we get real inflation and a little wage increase that's not a bad thing for corporate profits. yes, wage is going up but when you get inflation you get pricing power. i like a dash of inflation i wish we had more of it it would give us enhanced earnings i think we might get some of that people will forget about the feds hikes if all of a sudden we really were going to get double digit corporate increases in earnings next year >> it is moderating. >> i'm not sure it is there yet. >> i guess it is such an interesting time because we have the fed hiking on inflationary concerns b, the fed deleveraging $600 billion or so off the books every quarter and every year and a trade fight tussle, war,

whatever you want to call it, all happening individually do you worry about the fact -- there's never just one mouse in the house. you see one you got five >> yaechlt i get it. it's the docockroach theory all of this has to do with enhanced economic activity if china comes to the table that's good news if we have inflation in pricing that's good news the feds are reacting to that. only 36 months ago we are whining about that? they have to unwind. the canary in the coal mine, you may not want to pay for it but there's nothing wrong

earnings >> the mother's milk i don't know what to look at but i'm not if exiting as a house. i just want to speak about the bonds. they are not moving. so the bond guys think the companies can pay them back and that's good thing. >> kevin showing a lot of love for bond guys out there. we have the bond people out there. >> absolutely. >> i have been watching for you dig through the numbers. what's the success >> remember, 62 cents, rnings per share estimates about 61

cents. it includes 4% chance. it really hurts this company it gets 80% of sales of 6.29 billion. so barely. organic refr knews, which is key in this industry is argument chully higher. this sounds like not a lot for this industry it's okay. a story of where the strength was, immerging markets as a whole that was expected. organic revenue guided about two days achlgt i all sort its of

other weakness in the glesh ri store. it is still doing okay and has been a port in the storm in this market m so the ones that have better results and also have the safety play are really shining right now. >> and a few months ago they actually looked cheap especially the food stocks. the food stocks got beaten down. people thought packaged foods would be a decline type of thing. people can get okay with that. i think it helped a little bit >> it is better! snacking is a place you want to go >> mr. wonderful is at 2.95 dividend i will not throw you on the spot

but a food company with slow to no growth is 2.6% enticing enough for you to get in there >> i own this stock but not for this reason. it is a good bell weather of immerging markets. think about delivering five and 6% growth out of immerging markets. is it not good to tell you these markets have this in them. middle classes merging all around the world it is a good 2.5% yield. sit a safety in the storm kind of company sad this to the 93% of companies that hit their earnings. they beat bay penny. just another one by the way, nobody is expecting major growth from this thing not bad. look it is stable in a portfolio.

it is 6% growth. it tells you you're a healthy way. >> and thank you kevin always good to have you. we appreciate it chip stocks entering bare market territory today, down 20% off the high stocks have taken a beating. joining us to digs kiscuss this paul what is the selloff telling you about the broader market and cycle we are in. >> you know, we have been seeing this far little while in semi conductors we were in asia about six weeks ago. it causes a downgrade of the group. i think semi conductors are a good indicator for what's going on the supply chain is pretty long.

they move very fast and touch a lot of things. the other thing is texas instruments was one of the companies that also talked about nings slowing down into the fourth quarter t.i. is one of those companies that's in pretty much everything it is hard to find a piece of lerk tr electronics equipment. we haven't seen it from every country that's so far. >> we had him on cnbc last week. i remember she was talking to gym and david and it was the morning interview. she used the fancy speech. the inventory was an issue maybe it is an industry that just got a little irrational

>> it is one of the problems in semi conductors on a short term when you're in a downturn. you get a little irrational. >> certain segments are more influenced by price than others. it is why. the last time we saw something like this in our view was 2012 it took about two or three quarters to work its way through. the good part is that it went so fast and it corrects very quickly. you know, in that 2012 down tourn actualdownturn it was at the bottom >> it is good perspective. i guess what we are trying to figure out is how much of this big slump has to do with entry dynamics and how much is concerns about tariffs and

everything else happening? >> i think it's a little bit of both here. you're seeing slower momentum not just overseas. in the u.s. growth estimates are slowing and company comments are weak the last three weeks we are down 15%. we have been down. we have seen those about eight times. even though they are oversold it spelled out more weakness as well as broader markets

it's part of the whole nature and economy overall. >> so do you say it will reverse and might take a few quarters. what are you buying? >> i don't think there's very much to buy right now. sit some what different and that's long term secular trend for the rest of the space what we are really looking to do is watching the numbers actually getting to a point where there are no more shoes to drop.

>> i don't think we are quite there yet. >> thank you let's get more on what was an incredible and wild day on wall street. we are mike here who with break down some of the bright spots. there were bright spots today. let's begin with bob >> it was an interesting day here the bottom line is there is still no clear bottom in the market we had all of the big names besides that accelerated around 2:15 on a report that the u.s. might be planning additional tariffs. most of those stocks were already flattish they all turned south. then we had fang issues. these are generic growth concerns that had been around far long time. we had a report over the weekend that the u.k. was planning a

services tax it would raise a lot of money for them those drooped very early on. it was long before that report about the trump tariffs overall. then we had the bright spots we had value stocks notably outperforming growth stocks. in this environment it tends to be consumer staples. growth stocks of course mostly not entirely but mostly technology it has been doing on for a couple of weeks now. just know the amount of wild performance which almost approached 30 at one point you can see it there it was heading for 30. it all of a sudden dropped as we had that big 250 point move in

the last 20 minutes or so drop down to 24.7 >> thank you >> hard hit financial sector t getting a boost today as the market turned lower. we get a look at what it means for the market and he is missing it >> he'll have to watch it on play back. >> yes this is the bank index relative to the s and p the 2016 election right here, they went straight up with the election basically it said deflation fear is over. rates probably going up. it all worked and they didn't work for very long it has been bumpy until this year they went down like that what we have seen is right here they had given up the entire

outperformance since the election it means both is even with the s and p and now that's the little bounce today you cannot say it is a comeback. sit part of this theme of sectors that have been beaten down the most for weeks and months before october are starting to see a little bit of a lift. >> i don't think it is enough to get it must'oving. >> we had a fairly big regional bank it lost 50% of value its loan book was exposed to world. there are external factors >> that happened the last few weeks. >> absolutely. >> all right

see you in a minute. let's get you the nasdaq for more on what was another wild day in tech land >> the interesting thing is nasdaq started in positive territory. one of the things i watched today was the chips. you talked about the fact hay are in bare market territory basically what they did this morning is they sold chips is where investors dame in early. they moved up. they were up as much as 2.5% where the leadership was and then cratered going into the end of the day with the fact that chip remained in bare market territory down 22% from highs there were the early losers in tech that's one of the things that makes it difficult for any of these to take hold a number of chip names what's interesting is we are

seeing e commerce names. you have e bay along with amazon on the other side we had strength today and about the only stocks a few handful of stocks that are not in correctional territory knocked down at much as 6% even. all that, starbucks. it is interesting that we have talked so much about e-commerce. some of these seem to be catching up or at least attracting a bid oft of a bid i this market. apple has held up best of the big momentum maimnames. it is only down about 6% from its all time high. big event tomorrow on new ipads perhaps and new laptops expected and then of course the all important earnings on thursday

we'll see if it proves to be a catalyst here for tech this week back to you. >> yeah. a strong performer >> thank you joining us with more on this wild day on wall street is david ros rosenberg. you have become a regular fixture. a lot of what you have been predicting for stocks and the economy has come to fruition what are the action in today's market signal to you >> you know, really the one thing that caught my eye was the lack of any quality or rally in the treasury market. what's really unusual is since it started a month ago it hasn't

moved. normally when you're actually saying, if the stock markets hit a low normally when that happens the bond market is providing an assist generally at the lows and the correction the ten year note yield rallied an average of 60 b basis points there has been no move in this corrective phase, which is telling you there's a certain sort of feel coming into this place where even if the economy slows inflation will remain at or above the fed's target. as a result, you know, push further into the corner. it is one of the things that's not happening. you're not seeing a big thrust in terms of lower treasury yields >> does this market move does the president's pressure,

does semi muted inflations expectations, does it change i hate to say it, it was basically expectations, do they come down? >> well, you know, it's hard to say. we'll get a new dot. it may well be the market is already -- the futures market is already taken away about half of one rate hike that was in the marketplace for next year before this corrective phase took hold. i think it is one of the areas you know, i talked about this at previous interviews that i was wondering if the president shot himself in the foot. by openly political sizing the fed he sort of painted him into a corner how do they not look politicized if they take a pause in december it has become a little more complicated. i think that the fed, people say they are data dependent.

that is ridiculous no central bank will be operating on today's data when they policy actions impact they are really fraflt depen didn't the question would be do financial conditions tighten enough across the broad spectrum to start having them trim their forecast that's what is going to be most important for next year as far as interest rates are concerned. if they cut their forecast and people will breathe sigh of relief that rates will start to come down. what you'll get on the other side is reduce for profits there's no get out of jail free card because we start having less concern about the fed the question is what does the fed see. it is something that will be quite a bit lower than that. >> david, thank you very much for your time. let's bring in bob with his

take on the market action. come on, the market goes -- we had a 900 point swing in the dow. a # 00 point swing if you just saw the headlines you wouldn't understand the kind of volatility we had what drives that kind? we know it is machines but what's doing that? what's the underlying reason nar volatility >> so the fundamentals are influx it creates uncertainty and volatility we were in an environment where earnings were kind of double digit as far as you could see. we had good pe ratios because inflation was low. the fed was going to move. now all of a sudden both of those are in question. on the pe side it is now inflation and interest rates have moved up some the fed might go too far and

pe's have to come down on the e side we are having finally david just referenced it, a view that no earnings aren't goings to grow at double digit percentage forever how slow we are going get is a concern. that's what i buy. it is a resetting. it could raise all kinds of volatility >> yes >> can we talk about -- >> yes >> i'm sorry >> let's talk about that concept. in the time we have i want to dig more into what we just said. i mentioned it earlier. but in january of 2019 the dow fell 20% or whatever it was in a month. in february we saw extreme selling. now we are seeing crazy volatility it seemingly come out of

nowhere. do you believe there's anything to the theory that the heavily weights of many of these etfs or big kept socks, is there anything that the market structure has done which that has whipped up this round of volatility >> i think so. yes. you're touching on it. i would move more to the amount of money that's being managed on a momentum basis and other programs, other mechanical methods. when the market is doing up the momentum players go long, high volatility and they leverage it. when you get a swing you have got to create that swiftly so i think there are new players in the market in a significant way and the other structural b

system is just not there so markets go where they going to go much more quickly. >> a year ago they were complaining that the market didn't move. >> the market was at a stalemate. >> how many days have we gone without a 1% move? >> unless you a spring loaded effect it is referring to ctas >> so futures, yeah, sure, that's momentum. >> how does that explain a day like today >> let me get into my thing and you can tell me if it's not good i was searching for the right word amazon and apple, they are 150 it is caught in 150 to the top

10 or top 15 >> people out of rotation sell those names and those then sell the entire etf >> it has stocks and it is actually the etf selling or buying >> something is causing a 900 point swing in the dow something is causing that. we have a market structure which you never had before >> but the market used to jump around a lot more than it does you would be surprised >> but not on a given day. >> yes >> it is a world of higher rates really >> it is cheaper than ever to hit a button and get something to move but i don't think etf is the place you want to look

>> thank you for joining us. >> thanks. let's get a check on how some individual sectors faired in today's selloff we are watching biotech and watching the retail names. let's begin with you in los angeles. >> a mixed bag after disappointing user growth last week snap shares lost 5% down near the all time low twitter had a huge twinge todsw. it ended up ending the day in the green afterit added 13% last week facebook shares hitting a 52 week low today ahead of earnings tomorrow afternoon shares falling more than 2%. as the company faces big questions about user growth and the cost of a series of negative

headlines around safety and security and privacy of course all eyes look ahead when they report earnings after the bell back to you. >> all right thank you very much. meg is watchin >> thank you very much in the bi's tech space, what caught your eye? >> positive news in the health care space they duped it out with tech and now year to date, the best performing in the s&p. up about 5% year to date if you look at the stocks, it's health insurers and pharmaceuticals. sturdy names for health care relative to the broader market like pfizer, merck, and eli lily doing pretty well. they have earnings tomorrow morning and the visibility they have is keeping people invested in them. as compared to spaces that are riskier like biotech, month to date, they are both down

significantly. xbi is more mid-cap and smaller name companies down 2o% month to date the ibb is heavily weighted by small caps and down about 16%. dragging that down today, a lex yon, biomarin and illum ina. folks are nervous heading into mid-terms with all of the talk around drug pricing. the volatility continuing and depending on the outcomes, possibly further >> thank you very much let's round it out with a hat trick and send it over to courtney reagan. which by the way, if you look at the dow, there was names that did pretty well. >> retail did the opposite of what everything else did the retail etf was up a half

percent. look at the broader market analysis of the performance in october since 2010 shows they have an average turn of about . 2.1% that's below comparative performance in october since 2010, but at least there is precedent higher in the month. most of the department stores and many of the specialty names and as that nears, one analyst covers retail. there may be selling of names that are discretionary instead, buying of retail ahead of what's expected to be a pretty strong holiday season target was up almost 3% in the down take. macy's up 5% and had been up like 8%. dillard's up dick's sporting goods and decker's is up about 5%. cigna jewellers own like kay

jewellers, zales up 7% children's place up 3% it is extending its run. it has been up 19% month to date on not a lot of new news ralph lauren up 3% a couple of down names restoration hardware down 3% and way fair by about 6% it bucked the broader trend of the down market. back over to you >> the losers in particular saw buying action. wild ride on wall street 900 pound dow swing. we are covering every angle of this market. we are looking at the volatility and why autos were a bright spot previewing a big earnings report from a former dow component and after hours earnings movers. let's start with you, mike >> another one of the spikes and

the highest level for this october sell off you have above 28 or 29. one thing people look at is not just the absolute level, but whether it creates a spike formation. if it comes down three points off of the high for the day, sometimes that's going to trigger a signal that says okay, maybe it's a little bit of a short-term buy signal. we had a couple of these in the last few weeks no telling it's going to happen right away i don't think we are likely to go back down to the sub20 levels until the market proves it can get a few days of slow and steady progress, i think they will remain elevated, but this spike is one they think a lot of the folks are going to look at and say maybe we had a little bit of a welling up of panic and the fever broke for the short-term >> mike, thank you very much

it wasn't all doom and gloom there were a couple of bright spots, one having to do with automobiles. phil is here with that story phil >> it's not often we see the auto stocks moving higher while the rest moves lower let's start with the news surrounding ford this stock has been beaten down over the last 18 months, but it moved goldman gave it cadence when you look at ford, the thing to focus on as far as goldman is concerned, the earnings should bottom out the future vehicles and they have a new cadence in 2019 that's when it kicks in. the other story is what's happening in china and the reports out of china that the country is looking at cutting its sales tax for chinese

residents when they buy a new vehicle. cutting in in half from 10% to 5% 70% of the vehicles juiced the market and it's a market that needs it sales in september down more than 11% when you talk about china, you have to talk about the leader over there, whether you look at them or volkswagen it's general motors. china is critical to gm's bottom line it is the largest market in terms of sales year to date they sold almost 2.7 million vehicles it took a step down and generates about 16% of gm's profits. don't forget on wednesday morning, we will get the third quarter numbers like all the auto stocks, getting relief today and moving higher. back to you. they like like that. falling more than 1% and morgan brennan with a preview of what

we can expect. >> that's right. before i give you the preview. they closed at 1116 a share. they reversed course and the china trade headlines really played a role here none the less, tomorrow it's about earnings three big things to focus for ge number one, first public comments from the new ceo, larry culp he took over abruptly at the start of the month highly respected ceo expect an early outline of the plans to accelerate a turn around details, however, we may not get them until early 2019. number two, guidance more pain and power means they will fall short of earnings and free cash flow they had priced in an eps miss 88 cents per share cash will be key here, especially since it is shrinking

dramatical dramatically number three is the diffident. will he cut or suspend it? given the laundry list of charges and fresh cut under a ceo, a new ceo might be welcomed the details will matter since the shares are widely held for the pay out. q3 consensus 20 cents per share the bottom line here, this may be less about the quarter itself, more about the future. especially since that stock is down another 36% this year i would just note, we saw what some traders and investors called the rally at the beginning of the month when shares rallied about 16% that had come out on the ceo chairman today's loss is to erase the gains. >> morgan, thank you we will watch that tomorrow, especially the use of cash let's get to a couple of names that are moving here on earnings after hours. watching the software company and texas roadhouse.

seema? >> cog nex reported earnings and revenue that beat expectations and raised the diffident slower spending trends in china pushed the company to lower the outlook. that is down more than 11% in extended trade let's pivot to texas roadhouse the earnings missed by a wide amount 40 cents and the restaurant chain did cite a rise in cost. the performance is pressured by higher labor costs despite the earnings decline 2018 is shaping up to be a good year none the less, shares are down about 11%. it am cans ahead of tomorrow's consumer confidence number back to you. >> thank you final word, mike as we look to tomorrow and another batch of earnings >> every rally will be suspect until one holds.

facebook could be interesting. i have been saying no one company is going to turn this thing, but they refer sale >> facebook wiped out 120 billion in market cap its last earnings let's hope that's not the same way tomorrow >> i will be covering coca-cola tomorrow the feel of this market is going to be interesting. let's get over to melissa lee with more on the sell off. >> we sure do. fast money starts now and we start off with the market sell off. what a sell off it was the dow was up as much as 352 points before falling 556 at the lows, ending the session lows down about 250 points. look no further. the fang inferno when the stocks turned, the rest followed suit. they lost a combined market cap of a half trillion this month alone. has it lost and how much worse