we call alphabet g in there. it is really google. we should point out all of the stocks are now also in bare market territory down 20% from the most recent highs. there you see the s&p below 2,700. >> thank you for watching power lunch. >> the closing bell starts right now. stocks down across the board. tech in particular getting slammed. we'll speak to one investor who says this is a buying opportunity. apple getting hit hard we'll debate whether it is a good time to jump in and buy the dip. facebook shares are down nearly 40% from the july high. the stock is getting crushed again today. a shareholder tells us why she thinks major changes need to come from the top.

plus, former berkshire heavyweight joins us live to break down the impact of the trump administration trade policy on the global shipping market the closing bell begins right now. good afternoon warm welcome welcome again. five shows in a row now. >> yeah. >> let's get to the market action and another volatile day here on wall street. stocks sinking the dow at the low down 512 points currently down 430 or 1.7% >> yeah. the nasdaq is the under performer. it is about 2.8% right now all three lower for the month of november in this trading session. again, are reporters watching all of the market action

we have more from the nasdaq and don at cnbc headquarters with a look at the most volatile places in the market. let's start with you >> it started with comments over the weekend at the apec summit not providing any anyone vestments. trade sensitive stocks down about 5% casino stocks widely seen as a proxy for china are also underperforming the market they reported weak guidance among others are trading down. trade and china growth are playing out in different pockets of this market other parts are holding up relatively well. yields lower the dollar is weaker gold is higher and oil is stabilized here at $67 a barrel. on the sector side of things

energy tech that are contributing to the downward move we are seeing today put out a note they say that the pull back we are seeing is an attractive entry point. finally, this snapshot sum marrizes this narrative that has been gaining traction over the past couple of weeks >> thanks very much for that the nasdaq getting hit the hardest today among the major averages let's send it who is at the nasdaq with more on who is driving the decline. >> growth is certainly not what's driving upside. the nasdaq has so far held the october low. so have the kplun cases sector and chips sector that's about the best that can be said is chips in particular are near bare market territory it is not hard to see why.

they have been hit by a double whammy apple supplier sky works today the slowdown and demand for bitcoin has also been a big drag as crypto currencies have swooned. investors have been piling into consumer names take a look at the gains for walgreens and starbucks and ulta it hit a new high today. september's worst performer tesla cleeds tleads the gamers >> what a difference a couple of weeks make >> no. >> maybe a play for relative safety even that sounds wrong >> the fang stocks have been

among the most volatile so far this month it has been driven by some of these consumer services slash retail-type names >> apple moving to the downside. it lost about $218 billion that's something to watch there as well. alphab alphabet is is down.

it will be a huge move lower you take these totals up and it means they have lost more than $920 billion in market caps give or take a few billion dollars based upon market gyrations and perspectives >> thank you very much our next guest says volatility is your friend. thanks for joining us. is that a buying opportunity for your name? >> let's step back and take a look at the big picture. we can use the word crazy at this point if we look at value stocks we are forced that's more than we

saw during the top of the the dot comeboom >> big prices last week. made headlines you're looking at luxury goods all of those are falling it is a result of super high evaluations. >> so there's no opportunities in equity markets? >> there are always opportunity. let's go back and look what happened during the dot com crash? so right now what we don't

necessarily believe you can full-time factors we are tilting away from momentum stock you'll find safety and great return in value as we come out the other side it could be a wlielt before we come out the other side. >> u.s. equities have farther to fall correct me if i'm wrong it looks like a buying opportunity. >> i think they are so overweight technology. if you look at europe it doesn't have technology in things like the u.s. it is just the same story here yes. i think if you look at immerging markets, a lot of head it's lines are pretty negative. it is solid earnings, stable growth and that's where the returns are. >> if we compared back lots of people then said buy your strong cash flow. they should be relative. they were but you still lost money over a year, year and a

half period. again, does that apply now if you're really barrish should you not jouust buy that >> there is no way to avoid losing money at all. there was a wise investor that once told me that bears always sound really smart it is a terrible way to manage the portfolio. i think going into value names and go into some of the parts of the market that's a little bit less expensive will set you up for the rebound. that's how we are positioning. >> thanks very much. jim is joining us there. let's continue the discussion. we have 15 minutes left to trade. >> so joining our closing bell exclang exchange to talk about this,

market analyst good afternoon to all of you steve, i'll start with you given the fact that they were the leaders in, you you know, stock gains over the last couple of years can this market rebound without them >> no. it cannot rebound without them they are tremendously on sale. we have seen that in the last couple of weeks. if you loved all of these things since $12 handle on it traded as high as 100 bucks. now it's $63 it was a paper loss. it is still sort of dark and gloomy you need to see the rest of the market catch up. look at housing today. you want that talk about value it has been sold off bad news today and the whole complex is green maybe in certain areas we are putting in a bottom. >> do you agree with him that

you will be defensive or some of these stocks have sold off too much >> i think it feels uncomfortable right now. that's how it should feel. the key concerns are that growth will go away or liquidity is being pulled out too quickly i think they are both from mature people have been saying all yearlong this is as good as it gets we are really talking about peak earnings growth. it is more of a bullish signal the thing is you'll know when it is tightened too much. we are not there yet to say that we are close or you should be -- >> sorry to interrupt you but the feds should be focused on where the puck is going to be not where it was usually the fed is always

looking rear window. >> right >> so that's the problem they aul always wind up pushing and causing every recession that we had. >> right but the way you know, but it's not a dimmer switch. it's an on-off switch. if you look at this or when it is incredibly flat but not yet inverted that's where we are today. >> what set you on this discussion i mean my goodness it has been very significant in terms of the move up and the move back down >> yeah. i don't know if somebody really did that i would say rates have had their highest closing levels for the year i think that's hard to do actually in basically two years it more than doubled

interest rates are to historically low it won't really make a difference but we do. it is like a log jam of credit it continues to flow from investment to high yield and the they are much faster in adjustment the security is in the garage take a long time to process. the whole thing ends up getting bogged down a bit. i'm not saying stocks can't go up again or this is the big one but i do think interest rates have most likely peaked and it will be fascinating to see two things, to see the excellents should the fed tighten in december regarding how we have moved down a bit in rates and how it may effect them and obviously the china story is a biggie the dollar index everybody looked at it and painted it with the same brush it has given up a lot of ground with respect to yields falling

it is holding a 96 handle. i say it is a bit of a bright spot it is between 4.5% up on the year the problem with the dollar for business isn't its level it's the movement, volatility even at lofty levels if it starts to go sideways it eases the pressure >> a quick final thought, what do you make of the tone there? does it put aside any hopes? i think if anything it should give us more hope. >> yeah. >> the tone from the vice president gives you more hope? >> not tonight tone but look that tone hasn't changed what has clanged is it was seen as u.s.a. versus china it looks like there's more people or at least splitting some differences where it's a lot more behind the u.s.a. it's not just u.s.a. going it alone. >> okay. thanks very much

up next on the closing bell, apple during the market low today over demand for the latest iphone line up we'll tell you whether it is a good time to jump in and buy the dip. shares are down nearly 40% and getting hit hard again today. we'll hear from one shareholder calling for big changes at the board level. stay tuned every road in the world is now an information superhighway. (phone ringing) and the car has become an accessory to the smartphone. ride hailing, car sharing, carpooling... mobility services are proliferating. and there's a new generation who don't seem to want to own cars in the first place. it all means massive disruption to the car industry, cities, businesses and investors.

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and this is moving day with reliable service appointments in a two-hour window so you're up and running in no time. show me decorating shows. this is staying connected with xfinity to make moving... simple. easy. awesome. stay connected while you move with the best wifi experience and two-hour appointment windows. click, call or visit a store today. welcome back the low is 512 points for the dow. currently down 352 points. s&p down a similar amount. nasdaq down 2.5% >> yeah. and the stock that seems to be dragging everything lower more broadly is apple it is driving the tech sector, the overall market lower josh has more.

>> apple has been cutting production orders for all three new iphone models. it is following the warning signs we got including momentum. the problem here lower than expected demand. the decision to offer a wide variety of models making it tougher to forecast the number of hand sets it needs. tim cook argued in the past that his supply chain is big and complex. this selloff is overdone and apple has other levers to pull like including bye backs and services remember that google pays apple to be the default search engine. money flows right to services.

he accepts that money despite potential privacy concerns >> i think their search engine is the best. so by have private web browsing. we have an intelligent tracker prevention >> he tells me he estimates google this year will cut apple a check for about $9 billion back to you. >> thangs you vek you very mucht how should investors approach that we have ben here and max wolf, managing director. good afternoon to you both this selloff we have seen, overdone >> completely overdone

pa people tart to get a little bearish. you have the higher price. plenty of iphones. you have plenty of other products we think it is an opportunity. >> so you don't believe there will be a slow down or you think they have things to offset it? >> we think they will sell 200 million phones you have apple selling through amazon you a lot of new channels you tackle on all of the other stuff. it should easily offset it >> do you agree with that given the fact that the holiday season is getting underway later this week >> no. i don't think apple trades on the ability to sell product. it trades with a mystery bonus factor of being the lifestyle definer and the best of. they have made an unbelievable business they have made an unbelievable

business off of the phone. we are seeing apple knowledge it in its own preliminary way here. bushing up the average sale price. i think they may be able to build the revenue i don't think they are high near 40% margins and their market share can last. that was always the question apple rolls in cycles. if you know its 20 year history they can have the big margins. they will have to choose like everybody else it is still a great company, by

the way. >> yeah. >> one second. clearly all of tech has been selling off since its highs chls ho does it stk up against some of the other big names is apple still more attractive >> for a growth company it still pays a dividend. they also have a pretty low pe sit a good place to park your money historically apple and all of the tech companies are about believing the future is the future and it's where it needs to be. it is about trying to double down on the best days of the past it takes a little bit and apple is along for that ride >> last word >> i disagree. people are still buying iphones. that's a trend that's not changing no one is making the switch. maybe it's a little bit longer of a refresh cycle but people are locked in on that eco

system it is not going to change. services and accessories will drive up what they are missing out on >> love a good debate. thank you for bringing us that with 25 -- just over 25 dlsh 35 minutes before the bell the dow is off the low of the session. sit 1.3% the s and p is also down and nasdaq composite thanks to all of the tech stocks is down still ahead, we are all over this they head into the close and we'll speak with a pair of top stock pickers. plus they have been placed under arrest what could have a big impact of the brouder auto industry. we are back in a couple of minutes. don't go any where

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dow. the low was 512. also for the s&p the nasdaq is down tech is the worst performing sector today let's check in on individual market movers. reporting a beaten and guided below street estimates. the stock is down sharply some 8.3% we should say year over year they saw some 17% growth in sales which is behind the relative consensus estimate. year to date down 46%. you know rgs it throws into question how much are we seeing

economic growth begin to slow down up until recently you did see that in terms of that in the u.s. we are starting to see the u.s. stocks come down i guess and sort of trade a little more in line >> yeah. as mike has been pointing out the last week or two it has come off of lows the last two weeks when the u.s. has been selling off. it is highlighted by the fact that it is only down 12% year to date >> all right watching shares of general electric today company announcing a separation into two units it announced ge gas power and power portfolio. today it announced the leadership tied to the restructuring. it will serve adds chairman of the gas powered business he is coming back after retiring

last year. of course this move coming on the heels of wall street journal report over the weekend that the company actually had -- basically did an flfgs into some of the companies in iraq that it does business with there has been corruption allegations and potential charges there. more potential gas there sit doubling down and expects that ge can cut debt it is probably the reason it is not down more right now. it >> is down 55% year to date. >> it looks pretty negative. we'll see. >> time now far cnbc news update with sue >> hi. here is what's happening at this hour everyone.

new video of a texas police officer appearing in court after being arrested in connection to a double murder in new york. investigators believe along with three others were involved in the shooting deaths of joshua niles. bond set at $250,000 atlanta's airport setting a new record, the most guns con fi skated at security check points. federal government reporting they have been at hartsfield jack sob topping last year's 12 month total. tailor swi-- swift said she will now own her master recordings going forward and the president of the first 4r5id di welcomed the 2018 white house christmas tree a lit earlier today.

it hails from new dchs land, north carolina white house christmas trees must be at least 18.5 feet tall flord to be selected >> holidays are here >> i don't know who made that up it might have something to do with the ceiling height. that where it will be. it will be in the blue room. >> thank you very much >> see you next hour we have 28 minutes left of trade. we are lower but off the session lows we were down over 400 at one point. the nasdaq continues to be down over 2%. let's look at the biggest movers of the day we are here ton floor. let's start with you >> we have made some progress here in the last 25 minutes. we are off the lows. dow down about 380 points.

so certain lay trade driven market selloff names that have been able to burke t buck the trend, johnson a& johnson and verizon. looking at this. tech is still the worst performing sector. holding up relatively well home bimders are up in the face of this home builders sentiment thanks to rates ticking lower. back to this rotation though we are seeing tech lower. chips are down a lot of that has do with this bit coin with today's losses is down >> excuse me >> thank you let's sends it uptown to the nasdaq >> dow we are here at nasdaq apple, all of those slightly off of the lows continuing to be the

biggest drag here today. the biggest drag today right now responsible for about a third of the losses it is a little bit of a claeng -- clan -- change the rest of the gang watching alphabet has been hovering around bare market territory joining amazon and facebook which today hits yet another new low as it continues to deal with a lot of controversy and concerns about leadership. the bigst loser today nvidia it hit like crypto and hit by falling demand as well it is ones i want to point out they had an analyst meeting. this is the invisiline dentist

they was once a high flier and now once of the low fliers, if you will >> okay. thank you very much for that still to come on the closing bell, does facebook need big changes at the top to turn the company around we'll speak for new shapers. the chairman of cspan joins us live to discuss how the trump administration's trade policy are impacting the global shipping market. we'll be right back after this break. hi, kids! i'm carl and i'm a broker. do you offer $4.95 online equity trades? great question. see, for a full service brokerage like ours, that's tough to do. schwab does it. next question. do you offer a satisfaction guarantee? a what now? a satisfaction guarantee.

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wark back. >> daifrd, thanks for joining us

today. >> thank you for having me >> i was kwiquite surprised to e that hearing that the trade tensions could impact things are you seeing that? >> we are seeing that. it is the stock price versus international trade issues it had some difficult times in 2016 and 2017 time frame i think it has had most of the effect on the stock. international trade issues we are seeing effects in the marketplace. it is more acceleration and movement of goods to beat some of the tariffs in that it will effect some of our customers if it continues on >> specifically if we look at china and region for trade you're headquartered in hong kong are you seeing new shipping routes or is china relatively protected in the short term?

>> i think people will have a wait and see attitude. these kind of things take a lot of back and forth and arguing and yelling. i think people are kind of waiting to see is there a resolution that will make sense before they start moving too much the international trade, it is interesting to see how quickly it is growing between europe and asia and africa, over the last 20 years we have seen very significant growth throughout the world. >> do you expect that to continue it is in a unique where you own and lease it out >> we operate. >> yeah. >> so on one hand these trade tariff issues don't effect us directly they effect our china, shipping and cma and those kind of folks.

the growth basically in the past 20 years the growth and container shipping has been twice the global gdp so if we had a global gdp we have seen them on 8% compound growth i think it will always slow down over time given the size of china today versus what it was from a trade perspective it is still amazing. last year $12 trillion in goods were moved in container. >> do you feel like the chinese economy is hurting you made it far long-term increase to continue do you feel like they economy is hurting more than people realize it >> i don't know that i would use the term hurting growth is slowing. you know, they had such a tremendous period of growth averaging 8 to 10% gdp growth.

you've now looking at 6, 6.5%. it is pretty extraordinary but that growth is going to slow you know, there was a lot of low hanging fruit that could be cultivated a lot of that is moving to other parts of asia. >> okay. thank you very much for joining us >> thanks for having us. we have 28 minutes left of trade. we are low on the dow. the low of the day was over 500. we got back down to 300 or so points nasdaq down more than 2% shares of nissan crashing as news breaks the chairman has been arrested over alleged financial misconduct we'll have the latest next on closing bell so a tree falls on your brand-new car and totals it.

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welcome back to the closing bell 15 minutes left of trade there are the sectors for you. utilities and real estate in positive territory not doing too badly. tech is down almost 4% >> poor utilities. >> yeah. they are often moving side by side >> they are. shares of nissan sinking on the chairman being policed under arrest we have the latest >> this is a developing story. we might get more details overnight. she here the what happened today in

japan. he out dchs lined why the company is cooperating with investigators in ja japan. there is a report that among those is underreporting by $44 million, the salary from 2011 to 2014 will there be charges? >> it meets on thursday. it what will he do he is still ceo. this is not a question to be handled lightly given the history of ghosn look what happened with their global sales over the last 20 years. this was a marriage in the late 90s where nissan because dog with flies on the verge of bankruptcy number one worldwide in sales

last year topping $10.5 million. the return of nissan versus toyota and honda, it has been the better investment. we'll see how this plays out over the next couple of days needless to say this arrest and these charges, if he is charged, huge deal not only in japan but really worldwide in the auto industry >> huge deal is right. i have seen some commentary that if ghosn is gone it means musk would be one of the longest ten-year executives at an auto makers is that the case >> he would be one of the longer serving. you have to go back 2009/2010. ghosn is the last of the breed of executives from the late 90s to early 2000s who realized you

got to have global scale global scale is the way to grow an auto maker. the change now is that you men like musk and other newer executives that were saying it is all about monotizing the technology for the future. it's not necessarily just about scale. it's about how do you make money off of the vehicle that is you're building. >> the alliance between mitsubishi, is that not in doubt at all regardless of that? >> well, the nissan ceo says it remains in tact. >> there has been friction between the japanese half of that marriage and the french half of that marriage carlos ghosn has always been the glu. if he is gone do they say i'm

not crazy about me having a stake in you there are real questions there >> okay. thanks very much we are ten minutes before the bell the s and p is downright now the s&p is down about 50 points. the naz down down 3% right now facebook falling to 52 week lows we have the latest on that when closing bell is back let's begin. yes or no? do you want the same tools and seamless experience across web and tablet? do you want $4.95 commissions for stocks, $0.50 options contracts? $1.50 futures contracts? what about a dedicated service team of trading specialists? did you say yes? good, then it's time for power e*trade. the platform, price and service that gives you the edge you need. looks like we have a couple seconds left. let's do some card twirling

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in a two-hour window so you're up and running in no time. show me decorating shows. this is staying connected with xfinity to make moving... simple. easy. awesome. stay connected while you move with the best wifi experience and two-hour appointment windows. click, call or visit a store today. tnch seven minutes to go until the closing bell the dow is down about 454 points, 1.8% it is back below 25k the s and p is also down about 1.9% nasdaq is down 3.2% right now. the losers on the dow today, boeing, visa, apple among

others facebook seeking to its lowest level since february 2017 as well julia has more on what's driving the decline, julia >> losing nearly 6% today on negative headlines and scrutiny of mismanagement the wall street reported adopting a more aggressive style. it shifts to how the lit any of issues will impact user base warning that advertiser concerns about morality are real. last week's new york times article we don't see immediate financial impact but other risks are elevated on many fronts. we reached out to some of the biggest ad spenders. we haven't heard back from any of them on whether they are

planning to pull ad dollars or not. this comes as instagram considered a key driver of facebook's growth admitted accounts have been using third party apps to artificially grow. it is removing excellents from accounts all of this comes amid growing halls of regulation. they say regulation is inevitable former security chief saying congress needs to regulate online ads over to you. >> instagram has continued to be the crown jewel. the disclosures today, how much of that is a risk on what has continued to be an area of strength for the company >> i think instagram understands if they make sure that the follower counts and likes are real and accurate they will have a much more powerful product for advertisers. i think facebook understands it

needs to clean up the platform and make it healthy and accurate for the long run the question is how much m see their numbers drop off dramatically and whether there is a short term pain they need to make sure numbers are accurate >> thank you facebook shares down around 6% right now let's go for the closing countdown. the dow was down 512 points. we are here on the floor you're saying we will close the lows we are off the lows. >> yeah. i feel like they will push them lower. paired down a little bit i think they will push them ton lows i think it needs to. it would set us up for another test tomorrow.

>> is it -- >> tech is leading people are gettingnervous. only traded 540 million. it is a move like this you want to see a flush. the flush means you want to see more volume. it means it is another leg lower. >> and this week with the holidays could we see more big down days? >> the volumes will be wednesday for sure >> we have just over two minutes left of trade. the dow is down 420 points we still have held there for the

last ten michblnutes. we will keep an eye on that. s and p 500, the chart there you can see red pretty much throughout the day very much throughout the day we are near the lows but we are holding ground the low is about an hour and a half or so this is down 1.8%. it is about the same percent on the dow. this is down about 3.1%. if we look at the s and p we see that play out as well. communication services near the bottom consume ir discretionary down. it is the worst performing sector 3.05% quite a way off of those

highs. so rick saying that we have seen the highs. yields have peaked what else are you watching today? >> markets would have been much worse had rates moved higher they actually did fairly well. the rotation finding some areas to put that money to use also the weaker dollar it would have been much worse if we had a stronger environment. it helped stabilize. gold at 1,224. >> people saying if you're looking at that what's happening internationally? >> if you do that you'll see immerging markets are reporting so far in november.

>> the close is down 389 points. it does it for the first hour. back to you. >> welcome back. we have mike, senior cnbc senior markets commentator. stocks settle. the dow closing at 2517 down 1.5% we are down about 395 points

earlier in the sex the s and p ending down 45 points. 2690 1.7% drop for the s and p. the nasdaq closing down about 3% 73028 and ending the day down 2% tech stocks communication services stocks, consumer discretionary stocks lead the way lower today. facebook was one of those having another bad day falling nearly 6% whether this is a buying opportunity or if ths more pain ahead coming up. first, let's get on the floor with today's big movers. >> today's selloff driven by trade concerns growing worries over technology which has provided market leadership throughout the year

today's trade was the worst performing sector. apple entering bare market territory. they actually bucked the downward trend this flight to safety certain lay narrative that has been building momentum over the past couple of weeks. apple trade sensitive names, boeing, 3m and goldman sachs getting hit by lower bond deals. d dividend paying names. very close to hitting the record -- a new record high. yes, on the individual level there are a number of names in bare market territory, rauf. the major indexes are nowhere near that level. the dow is about 7% away the question is whether earnings can change this narrative we'll have to see if it

changes the story and market direction. back to you. >> joining us now is stephanie link guys, mike, i'll start with you. how did you characterize the action we saw today? >> we are still in this thing. you have the waves of correction washing over different parts of the market today the growth stocks have been brounded. you toe know where the floor this was not disorderly. it was not indiscreme nant telling. you had one at of four sets. i don't know if it is falling a

little lit a plash >> so this is a classic day. it has ban leader for such a long time now you're seeing both yofr outside of tech if they have those car tack teristics but this wleer that has not been the year to be buying on the dip. it is usually a classic you buy ton the dips mentality and you're not seeing it

>> it is very broad and very pro flounced if we have days like this we haven't had any -- >> i wouldn't say it has been the theme. you're seeing that the stuff that's held up better is now getting it >> if you look at adobe that kind of traveled they had held up better. they are getting slammed so saying too the market has been hunting for investors basically kind of eating those profits up as they go along. i don't flow know if it means it says down trends, broken stocks and sectors all over the place. it is very defensive and quality in terms of what's working does that mean that recognition point is when we have had that or is it a realization that's the market we are in now >> we saw it when rates started

rising rates are coming off again how should we think about that relationship i think you certainly had defensives which also had some of the really beaten down groups it is like energies and financials that held up on a regular basis. it will be interesting to see people wiare going for the laggards >> to morgan's questions on rates, rick saying he thinks the tenure has peaked in any sort of medium term per specific ifr but

what do they look at is it what the longer term rates? >> they would be looking at market rates if you put down a list of what seemed to get us into this weak phase it was oil crashing. it was concerns about trade tensions there you can go down the list and say they have been aleveruatleviate fully reck cognized. oil has stopped doing gown you can still see the down trends it has overtaken the market and lower bond yields ended there. >> and one of the stocks that has been hit is apple after reports that the company slashed production of the newest iphone models it was down 4% today.

it has been a rough couple of weeks. it is since the beginning of the month. it is a sort of similar discussion point clearly the stock has not shaken out the bears yet. >> yeah. it is a pretty orderly backing off of this stock. it is up 10% year to date. i think through the summer there was a sense of inevident blt i think interestingly the market wants quality stocks they want strong balance sheets, buy backs. they want defensible profit margins. apple qualifies on those kounlts. it's maybe not falling apart more >> it has been very painful. i think part of the problem with apple is the set up. it was such strong stock it held up remarkably well

headed into the print. you this lack of visibility. it is a free cash flow it is building the recuring revenue stream i think people will come back to this i don't think it is extended at all. the problem is it is still up year to date maybe you see it come down a little bit i will be buying more for sure >> and let's talk through that change and how you'll report that sales number. it is a factor that's spooked. it is at a bad time as well. >> yeah. >> what do you think was behind that and do you think it takes a quarter to shake it off or something you'll say wow, they can pretend to be the hardware sales? >> no doubt unit sales are slowing. it has been slowing for quite some time. they have been able to offset

that but this quarter you have this lack of visibility. you this new reporting struck clur chl -- structure. they have to get away from this grind of unit sales and that sor sort of thing. i still believe that services, wearables and even iphones are still solid. it gets you maybe a high single digit earnings growth. you're not paying that much for it with a bundle of cash and they are buying back their stock. i understand the bare side i really do. >> we have an earnings alert courtney has the numbers for us. >> urban outfitters duturning ia stronger than expected revenues. 974 million. it beats 968 million

also company wise comparable sales is up. that's a beat too. by brand it looks like three people were the strongest. it was slightly below what they had been look for. he does say all grands, channels and categories, shares are up by more than 4.35 pngt. is this another reflection are you another on the state of the consumer. >> >> yeah. they seem like they still have a hold on it it was trashed the last coupleover months. relief is the reaction today >> they have dut a we ip i think

the stock is down 27% from the highs. before we move on apple by nine basis point avoided going into the bare market >> it feels like a bare market >> sorry >> sal fa bet a-- it doesn't mae a lot of sense >> absolutely. >> okay. >> okay. home builders pledging to the lowest level since august 2016 it is on rising mortgage rates home building stocks held up relatively low on today's selloff. you can see light there. all up at least 1% there >> it's a couple of ways you can

read this. >> one is you want to see a beaten up group not go down on bad news on the other day he mentioned it is a derisking day you sell the stuff you have owned a lot of maybe the stocks themselves are maybe closer to getting sold out for the short term >> short term -- i think it is about the get better for the home builders. you'll have it eaten up. >> and it's going into the late cycle. good for the home builders there's not the right supply for

the people that are buying it has gotten more expensive there is enough underlying demand if you gate pull back in rates you will see a better balance. i think stocks are ridiculously cla cheap. i have been buying that one. >> could these take this if we come into worse economic growth. >> you can't be heading in and owning these stocks. they are so underperformed really what we are talking about is a step down in growth the fed is not as aggress ifr. i think that's the kind of environment these kind of retrace to the upside a little bit. >> we'll stick with us we'll have more coming up. up next we'll discuss whether or not this is creating some bargains in the market. a pair of top stock breakers are

straight ahead mark zuckerberg needs to own up to the social media unite adshdals and bring in new leerip more coming up on the show stay tuned ♪ ♪ move to the enterprise-grade cloud that's built to handle all your apps. ♪ ♪ the ibm cloud. the cloud for smarter business.

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>> the dow finishing down nearly 400 points another concern corporate debt mike has moreover here >> yeah. so this has been the background concern. here is a very long-term chart of corporate debt compared to gdp. it is telling you they are worried about 45% of gdp where are the others it is in the early 90s that's the backdrop. an awful lot got piled on over the course of this cycle i think there's plmitigating factors. this is the lower end of investment grade bonds over the past year. you can see steadily this is

going up it means they are demanding a higher yield for the risk they are taking on. ge might get out of here here you see this inparticular >> it is why quality right now it will become more expensive. not that many we'll have to worry about. >> if we go back to the first chart another reason is it is not as scary even if rates are

going up they have said what they are paying. not much u.s. debt is floating >> most part it's not. some are concerned about the leverage loan market it is a separate issue that's why it is really about the next two to three years when companies are going to have to rollover the debt that perhaps they will have to pay more they cover things fairly well. >> do you think it's the reason why it has lagged? people are migrating to larger cap quality? >> exactly also, if you look at those companies in the small cap they have more debt and a lot more of their debt directly reprices >> another one which sounds like another factor that means we shouldn't be as worried is that

in 2007 and 2008 banks didn't have enough they were obviously drawn aggressively. >> it is much more about i own stocks. >> it is going to become more x expensive for companies. that's about it. so it's not as good as it was but i think way short of anything that's crisis level >> and when you sent it around earlier i was shocked to see it was 45%. >> thanks very much. a pair of stock pickers tells us if they are finding values in this market. volatility spiking today we'll discuss how it should be and how they should be trading the volatile environment we are back in a coupleover minutes.

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we can do the screening at her house. hi. this is the man that's going to check your eyes grandma. cognizant ai solutions are helping healthcare companies advance diagnostics and prevent blindness in patients with diabetes. everything looks good. you have beautiful eyes. ♪ what are the best opportunities out there? >> stephanie is back, portfolio manager. hello to both of you i'll start with you.

this idea, where are you seeing signs of that? >> to harp on david's old red room green room, what we are seeing is the red room is getting torn apart in the red room it is very exciting and fun there are very few seats in the green room there are tonsovtons of seats that's where the money is being made it is being lost in the red room and haas everything to do with what stephanie said earlier. momentum, tech, it is quite a fun time to say the least. >> what is one of the top more defensive value names that you think is worth buying after these recent selloffs in. >> where to start. you guys talked about the home builders it's a pfrt example. old economy, boring, frustrated in the last 12 months. it has a very bright future. there's good money to be made

there. the things that were going to be hurt, the unscripted content is quite a great way to make must be me sitting here is free continue tent for your guys that's not what the red room players are playing in they want to get very expensive actors and actresses but it's not profitable that's the dispossessiersion go. >> what's exciting to you right now? >> those companies have good earnings it it has been the classic way example, intela a good quarter, how it's getting hammered every single day where nobody liked it nobody was

left for dead. i think there's a bargain there. not just one >> all names have come off here. is there anything in that sector that you like? >> it has been kind of a -- all of the energy has been a tough sector this year they have done a very good job they are buying back their stock. they are not plowing it all. they do have good assets i like the return story that you're getting they believe in their evaluation as they are buying theirshares

>> the momentum factor that was hurt it is perhaps related to the rising dollar. it is pretty well tied to the investment i think there's a bigger kind of benefit to stable higher oil prices that we see -- that matter more and we get a benefit on the coop sumer side >> what are you watching as it gets potential risks in the market it is a number of market moving events in the coming weeks >> what we are dealing with is a torturous environment. it will be enjoyable i call it death by a thousand price target cuts. what is going on in these as they are going lower and lower and lower. the build up has been a ten-year

path >> i'm talking about $40 or less it is chancing right in front of -- collapsing right in front of us. >> we talked about apple was it still up year to date nearly 10% you are buying disney. i think i'm right saying that is up year to date. >> i think 2019 is a nice set up for the company. i think finally they got it behind them. they can close the deal. i think we already know the problems with issues there those numbers and the declines have actually settled down you get the o.t.t. announcement.

we don't flow the details. i don't think it needs much to do that. it is a good earnings report >> achbds even though it is up a little bit today it has been here before and apple about doubled. >> thank you for joining us. let's have a look at how we finished the day on wallstreet it was the worst performing sectors. the russell ended down 2%. we have an earnings alert. >> 7% after hours. stock was down 6% today.

they taking that much back it dropped under the 200 day moving average the strong quarter guidance coming at the perfect time it is up 7% after the bell back to you. >> okay. thanks very much for that. >> time now for a broader cnbc update hi >> hi. here is what's happening at this hour every the former president of peru is seeking asylum. a judge ordered him and garcia fled garcia being investigated with bribes allegedly received. a 59-year-old man reported missing on saturday when he failed to return from a hunting trip in michigan has been found alive following a massive search of the air yafrmt police report he was suffering from

dehydration and hypothermia. india opened the very first hospital for elephants they are an endangered species the hospital will care not only to el fanlts that have been injured but become a center for learning about wildlife conservation and the annual strees for fraps will be given out on bases across the country you're up to date. that's the news update back downtown to you >> i don't know which story i like, an elephant hospital or trees for the soops. >> we have to offset that ugly

looking market thank you very much >> you got it. the fallout is one of the worst performers we'll whether facebook can be fixed and trade troubles keep dragging the market lower. we'll look at if there's any hope far deal teonhelar t closing bell when bob barnett made the first commercial wireless phone call in 1983. yes, this is bob barnett in chicago. (john) we were both working on that first network that would eventually become verizon's. back then, the idea of a nationwide wireless network was completely unreasonable. but think about how important that first call was to our lives. it opened the door to the billions of mobile calls that we've all made in the last 34 years. sometimes being first means being unreasonable. i'm proud i was part of that first call, and i'm proud that i'm here now as we build america's first and only

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welcome back renewed concerns over how they have handled recent cry crises >> facebook telling me we haven't had -- have not seen any meaningful trends. when i asked what they are doing to reassure advertisers facebook telling me we are in regular contact with advertisers the company says it won't

comment on what percent are from big brands wont kel to work to see what's happening in terms of those ak over to you! the question i guess you posed to them quite a short-term focus and they have had system of these various can zascandals tol with >> yeah. and so they talked about how they did not -- it did not like they had any meanfulful trend. we have seen a number of ad agencies say they add pyre or respect what facebook is doing to deal with manipulation and fake news on the platform. it seems like there's an axel bragts of bad news especially by

the issue of mismanagement >> thank you shares ending down almost 6% joining us to discuss what concerns could mean for the company's future, julie is here. found are of north star asset management both julie are shareholders in the company. good afternoon to you both i'll start with you. >> you own $17 million worth of facebook shares. are you going to hang onto it here are you looking to buy more, sell where do you stand on the stock? >> we act dlully like the evaluation at this level we think it is probably more after an opportunity to hold what we have i would think take a look at opportunities to increase that as we go forward we are positive on the stock >> you think that some change there management could have avoided some of these issues in the past, particularly at the

board level? >> i do indeed we are in a very interesting position with facebook one of the things i would have asked them in terms of advertising revenue is how is their advertising revenue changed. i always thought -- i have been doing my research. basically the problem here is that mark skimer -- to virtually nothing can be done to change anything without his buy-in. we have been trying to get them to have a one vote per share model. you know, he is not going for that he has ten times the voting power. what's interesting about that is we have got 81% of the one vote

per share shareholders behind our resolution you know, to clahange the governance >> do you think there needs to be changes >> the important thing for us is this is a community of $2.3 billion they like to be liked on facebook while we can talk about how advertisers might look they go and they generate revenues from where the people are i think until you see a change in users i think we are positive on the stock and the leadership in the company they have problems but they have shown a habit of trying to get through them overtime. we are positive on their leadership we don't advocate any particular change we want to see them create this fabulous community >> so let me ask you a question. i want to understand from you

why you feel like they have got it under control when for the last several years they have known exactly what was going on. there has been very little oversight or even really understanding of what the implications of the kinds of stuff they have been doing would have on, you know, the value of the company. so in other words they did not know any of this stuff was going on supposedly. yet they made some really crazy decisions. it's like you have them try to go climb out of a hole. >> i think that the point of the matter is that, you know, facebook is a relatively young company. they are really working to solve some of the problems they have already begun to work forward to that. i think we need to give the

leadership, the opportunity to begin to work through some the problems that they have. they had problems with mobile and with other things from an operational standpoint i think they are listening and think it's time to give them an opportunity to work through some of the challenges. >> so how do you do that when the board is stacked that's what i'm trying to understand >> thank you both very much. >> thank you >> we'll have to stop there i'm afraid >> thank you very much >> to what extent are people thinking these issues will make theme lose users and going to be tougher? >> i think the combination of user disengagement, general sense of management is not trying to maximize profit bltd they are trying to fight other

battles. plus the massive break in the up trend. i mean i cannot imagine a half trillion dollars company that had a vertical drop the way this one did over the summer and has continued to struggle. >> and we discussed this po potential spat and if one -- if she was to leave or the role was to change would it be bad or can people take that well? >> you do have a sense that people are braiding on their from even if it is am firm mags that she is going to stay. i don't tli she is waiting for the company. we have been our number of people former facebook director may get that question tomorrow as

well he will weigh in on the essential moo ya unite's l. brands is the parent company of victoria's secret and bath and body works. the rev flews for l. brabds beat estimates coming in at 2.77 billion the street had been looking for 2.71 billion coming in up 4%. they are having they will raise it annists estimates are for 264. a new division called john

mehas. we had spoken about how janua singer resigned and they named a new victoria's secret. shares are down, had bounced around initially but now more than 6%. the company just cut the the company cut for achb that has a new c eric o to true to things lrnd that is one of the two big companies under the l. burden of proof important it was a 7% dividend yield

at least perceive that i think working gents it is the founder. there was some thinking that p. >> testimony it is down about 6 to 7%. now, this is surging nearly 11% today. we are teing you how to trade is it the stock on a bigger mover up >> yes ch we iinged had it in neb p we have had some pull backs and butten i think if you look at that -- when you really look it is because of the idea

that say gives you about a 1% move on a daily basis. if you look at that we are having extreme moves the fact that we near 20 is surprising it's not higher than that. we have had spikes up towards 25 it is kind of a no man's land. >> the highs of the year which you would frame as we got up close to 40 close to 50s level the highs were closer to 30. is that fair >> that's very fair. i think it might go a little bit higher we test that 25 level one more time you know, you always look for that woosh in the market i know everybody doesn't like hearing that because it can be

painful. i think it is a very very quick mover and i think we get that push to the downside we have had nothing but order ler proves even today. -- moves even today. so i think at some point we will see that when we do it's more of an all clear in my opinion. you get that big woosh it creates a great opportunity >> okay. thanks very much >> absolutely. thanks very much >> and the catch him and the rest of the crew on fast money we have a news alert hi >> brian cornell, the target this eric o y'all can buy back

over the to you. vice president pence took a hard line on trade at a summit this weekend the impact it could have on your plun is coming up next -- money is coming up next. ♪ introducing e*trade personalized investments professionally managed portfolios

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trade tensions with china contributing. vice president pence making it clear that the u.s. would stand firm in its approach to trade. take a listen. >> we will take a decisive action. we have put tariffs on $250 billion in chinese goods and we

could more than double that number. but we hope for better. the united states will not change course until china changes its ways. >> joining us now to discuss more on the rising trade tensions from the peterson institute for international economics and christopher thornburg for the forecasting and development. very good afternoon to you both. fred, if i start with you, the president and vice president not so much good cop, bad cop, but bad cop and worse cop with the vice president being the latter and also not just delivering a tough tone whenever he speaks on the topic of china trade, but quite a careful and thoughtful and considered approach as opposed to barn storming tweets. which do you think represents the true view of the administration >> they are both in negotiating mode right now. president trump will be having a dinner meeting with president xi jinping in ten days.

the objective is to come to a new trade agreement. president trump, vice president are in negotiating mode trying to strengthen the u.s. posture going into that reminding the chinese that they have trade barriers out against china now. i think they want a deal. i think both countries watt a deal. i think president trump wants a deal. i think there is a good prospect for a deal. all of this is rhetorical runup to what i think and hope will be an agreement that will bring at least a truce if not a resolution to the trade war at least for the time being. >> there has been a lot of focus on the tensions between the u.s. and china this past weekend. to me the big take away was the fact that it was at least according to one u.s. official 20 countries against china when you talk about the verbiage looking to be used in the proposed text from this meeting. does this put more pressure on

china and give the u.s. more leverage >> i think it does. i think the united states has been making a mistake -- >> chris, to you >> i'm sorry. >> excuse me. so, yes, of course. the entire world needs to do something about china. mind you, this administration sort of center focus is the trade deficit with china which focussing is really kind of an incorrect way of looking at trade, but the broader picture is china has continuously violated the basic tenants of the wto which they joined. it is about time someone stood up to them and said enough is enough. the u.s., of course, needs to be the leading country in that coalition. we are the only one big enough to take it on. the fact that other countries are coming up more shows this is really a global problem. while much of the trump administration's trade policy has been largely offbase, on

this one i'm in complete agreement. >> fred, i will put the same question to you since i know you have thoughts on it. >> china does not want to be isolated internationally. it's very important to mobilize america's friends and allies in this battle against china's unfair trade practices. the trump administration made a big mistake by launching trade wars against its own allies over the last couple of years. fortunately, it has resolved or at least called a truce in those other trade wars. now it can mobilize most of the world in this trade conflict with china. the meeting is very constructive in that respect. it shows that even china's asian neighbors are willing to coalesce to try to get to straighten up and fly right. it's very important to them. it's very important to the world economy. i think it adds to the prospect that we will get a constructive outcome in a couple of weeks and

hopefully put the trade war at least on hold and maybe better on a path towards resolution. >> thanks very much. we will leave it there. another down day for stocks. we'll recap the big after hours movers next. something is transforming and our world.. it's the longevity economy - americans 50+ driving 7.6 trillion dollars... of economic activity every year. right before our eyes, aging is unleashing exponential growth... ...in every industry. are you ready? we are. a-a-r-p is teaming up with business leaders and innovators... ...sparking new ideas and real solutions. so, what are you waiting for?

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welcome back. let's check in on the headlines. l brands under pressure after the owner of victoria's secret slashed the annual dividend in half. that is down three percent. my thoughts on that? >> if it is down on the dividend as opposed to the guidance and the results, it is probably not a lasting move i would say because it is one of the things where certain investors were in it for the fat yield of seven percent and it probably will not determine what happens going ahead. >> another retail move, urban outfitters shares are higher after beating wall street's earnings estimates thanks to stronger than expected same store sales. do teenagers like their brands again in. >> i think they do. i think there are spots for these chain retailers to do okay

this year. the stocks today got hit. retail got hit into black friday week. >> clearly the other big take away is tech, a pretty ugly looking finish. >> hard to know where it stops. it has been a bit of a herding out. >> great stuff. >> thank you. >> outstanding week. it's been fun. fast money starts now. >> fast money starts right now. live from the nasdaq looking at times square. let's get right to the major market selloff. the dow falling more than 500 points. the dow and s&p erasing their november gains. the nasdaq was a big loser down three percent. tech is in turmoil. check out the likes of facebook, amazon, netflix getting absolutely crushed. facebook on track for the worsto