>> we'll take a look at the mark right now. you stocks plunging on fears of slowing economic growth. the dow was down about 805 points it is trading down about 640 points or about 2.5% lower >> for a little per specific ifr the lows of the day the major index has given up about half of the six-day rally that we got. we'll see where we end up. coming up we'll talk to john waldron and what he says is behind today's selloff and talk to chris ailman, how he is reacting to this market volatility >> let's look at what's driving the elloff

the next level to watch is 2,700. so we are about 18 points away from the crucial level the dow, the dow transports breaking through their 200 day moving averages. what we are seeing is basically an unwind is one way to look at today's price action and within transports ups and fed ex trading respective highs on their concern there with today's losses the nasdaq is back in correction territory. the s&p about 6.5 away it gives you where those

averages stand there are some bright spots. you tillties on pace for more than a year. names like proctor and gamble are trading at all time highs. it gives you a sense of how investors are placing their bets right now. >> thank you >> bores comes back into fashion. today's selloff has the nasdaq back let's get up to the nasdaq for more on that >> we are seeing trading off of the lows a broad selloff here one thing that's interesting is that we have the small caps lower. part of that is they are concerned that we didn't really get anything resolved with the china meeting between president trump and xi from china. as a result we don't know how that is going forward. that's part of the reason people are concerned about a slow down

in the economy as well they don't know what lies ahead after this 90 day cooling off period am also a drag as well in bare market territory it is off from the recent highs. it is down about that much just this quarter alone also a downgrade with concerns about slowing iphone sales the concerns about a slowdown. it adds to the latest so it's warning about lower demand from major customers. it is actually the better performer today in the midst of the chip meltdown today. if you get a slowdown not just in apple but in autos a lot of chips go into those as well. it could go throughout the sector a few stocks bucking the trend today. a handful of gainers today tesla and xcel is among those

utilities. it is off of that high at the moment, morgan >> thank you for bringing us that context financials are among the biggest losers today cht it is the worst in the s&p he has been speaking at the financial services conference. he joins us now. hey. >> hi. yes. markets including banks in particular setting off in part because people fear we are late in the economic cycle. i asked tim and brian whether they thought this barish market sentiment matched up with what they are seeing in the underlying economy >> it does not when i talk to our customers its is across the board, corporate market i'll get back to small business in a minute. they continue to be fairly optimistic about the economy they will say their biggest challenge is hiring enough people to continue to grow the

business in fact we came out with our wells fargo small business index today. the results for small businesses were off the charts, highest ever >> we feel very good about the u.s. economy the prediction was slow a little bit. under that is a strong growth rate we feel very strong about, unemployment, wage growth, all of the factors are very strong >> i also asked tim savings and loan -- tim sloan whether it is temporary. >> when we look at the impacts relate today the customer base it's not significant nafta would have had a bigger impact if he hadn't reached some sort of agreement. it has a big impact on the u.s. than china does. it certainly impacts those multi-nail national companies that have mur of a presence in

china. >> fairly relaxed about fed rate increases. >> if the reason rates are goicgoin up that's a good thing there's great debate ability how fast or slow they will go. it told you that the rally is underlying economy is is going. >> so they are relaxed all banks selling off the lows we are still down about 4% today. it includes goldman sachs. coming up later we'll get incite as to what they are saying the reason is for their selling today when we speak to the president and coo john waldron

it is also the latest on the banks scandal and his vision for the future of course this is his first interview since being promoted behind david, guys. >> i wonder if perhaps some of that disconnect between what the ceo of wells fargo tell you they are seeing in their customer base is that wells fargo and bank of america very consumer heavy banks. maybe they have not seeing anything in there. it would give them any kind of concern at this point. >> yeah. listen, mike, we discussed this. and even across the portfolio they seemed pretty relaxed about that tim sloan said even if it saw

unemployment jump he still didn't think credit risks would speak it in a meaningful way he was similarly relaxed about the outlook and didn't think that the global growth was going to the tone is pretty unanimous here it is like equity evaluations >> how are the ceos you spoke to today thinking about that? >> they are trying to distance it itself banks lend long and borrow short. steeper yield curve allows them to make a lot more money they spoke about the technical factors suggesting it was down to factors like international

yields is why it is flatter. it is that the evaluations suggest they are about to lose money of these bank stocks it will limit the amount they make moving forward. >> well, great stuff and we are looking forward to seeing you later in this hour joining our closing bell exchange today rick is here in chicago. good afternoon to all of you i'll start with you. we are down about 700 points now on the dow how would you characterize the trading and should folks be really alarmed right now >> no. they shouldn't be really alarmed. not until a few minutes ago did we get up to 500 million shares.

you'll see the dow down 800. you would expect to see some what of a stampede i would like to throw in one other factor because i haven't heard it mentioned all day and that is the renewal. the parliment voted the may government in contempt it hasn't happened since he could wear a baseball cap

>> so that's something to highlight there. rick, you know, you have been at this a long time i would venn clur to say maybe this is the most widely watched vigil far flattening-year-old curve we have had at any cycle what are we supposed to conclude and what are we not suppose today conclude >> the point here is that after everything central banks have done all of the securities around the globe to manage interest rates at a level that would be lower than otherwise has a price to pay i think we are seeing a little bit of that with the yield curve but that doesn't change the dynamic ofinvestors.

>> there's a lot of risk party trades again especially with the holiday and mourning and proceedings tomorrow that is added to the volatility. right around 2763, just around the 200 day moving average 32 billion were sold into the marketplace on some of these program black box set ups. they also at the same time were

coming and buying treasuries there is a lot going on under 325 the 30 year accelerated. in 30s it's below the market at 313. the reason i mention it is unlike many other markets the fixed income space is usually associated with higher rates >> when you look at financials right now it is down 4% given the comments that we just heard from the ceos at that banking conference right now are these a buy? do you stay away from them >> yeah. you know what i will say, namesy names. some banks are very cheap.

it is one of the best indicators >> yeah. >> investment trading for less than that. there are a number of banks but the regional banks are >> and charlie, just in general are you having to -- do you feel a much lower economy next year you look at individual companies? >> you know, we are really not we talk to the people that manage and they are expressing lot of optimism. we think we'll have 2.5 to 3% growth next year i want to remind people that this wonderful bond market indicator has made lots of false critics in the past. we didn't get a recession until 2001 it went flat in december of '05. so it is in the a perfect indicator by any means >> and i tried earlier to put it

in context of where we are in the market would you consider this part of this choppy attempt here we were up pretty big in six days >> yes you were you could see in part of yesterday that there was weakness pulled into this. you know, they got up this morning and they were looking at what happened there klichina. they said my hand is empty that's where it came we had people ask about it believe me it is not. you see them either sell like a trap door is open or if you see a stampede where it is big this has no sign. >> all right we'll keep looking for it i guess if we want to find it. thank you. of course rick is here appreciate it today. joining us to talk more is christopher ailman

chris, great to have you here. obviously you are across pretty much every in a big way. what's going on in terms of signals and how equities are responding to make you rethink allocations or interpret this at all. >> we started having defensive about five months ago in order to stay a tad defensive. we still have a large u.s. and global equity portfolio. i agree 100% with rick he is a legend this is just kind of volatility. you guys have to strap on and put seat belts on the chairs it will stay that way for a while. >> what's the bond market telling us why have we seen this? is it tied to trade or something else how should investors be thinking about something like that?

>> i think equity markets have got to pay attention to the bond market it will lead on this this is just a dip it is not an inversion it is just a dip in the mild of the yield curve it is all the way back at thanksgiving stay invested, rebalance and then consider taking risk off. >> would rebalancing at this point also involve moving money overseas the u.s. outperforming others by

a lot. >> it's really hard. normally i would say yes i'm not sure about the reference to the baseball cap that might be a while ago you know, it's a kind of -- it's in a world where you would hope it would be doing better it is going very slow. there's a china issue and brexit is still unknown the immeremerging markets are cp it's the kind where it is hard to find anything you want to go high to. >> do you think cash is more attractive right now >> tax is always hard. it is zero performing after inflation. you get a return but on a real basis it's flat. it's the kind of thing where you

could go there in terms for people like us that have a negative cash flow we will always maintain a cash decision it has a place in most peoples portfolio. you have to decide if you're over 50 you may want to maintain some cash. either it is dry powder or because you'll hit liquidation mode in a while. >> a lot of the action people attributing it to the imaginations of pension investors or long-term trying to match up with liabilities. is that something you think applies right now? i guess the question to that are the credit markets showing you some value right now everyone starts to worry about where it might go. >> you know, i don't see investors buying that because the yields are too low you can't offset your liability.

i think there is probably some traits going on particularly because it is not going to be a holiday. that has some impact and there are pensions that are moving more i think the bond market is telling us a lot of signals. i wouldn't be moving that in a big way. credit spreads are incredibly tight. i think you have to be really careful about. it's an area where everything is with danger. that's the nature of investing it will be volatile in here. >> you're invested in a number of tech companies. facebook comes to mind given the selloff we have seen in those names and recent weeks and recent months are those an area of opportunity right now? >> you floknow, i think the tech names certainly got highly

valued it is important. you can't just look at the large big names. as i have said it's not faang. that's where you have to be diversified. as those ran up and got so strong we have seen that in the past. financials got really strong tech stocks got strong in the 90s. you have that away from those names and not just stay with the runners. they are going to falter now we are starting to see problems with the ceos, questions of trade i think those are work at home the entire u.s. equity market and not just the big flames. balance our portfolio into small caps >> thanks for joining us today on what has been a very tur turbulent market day >> and she was behead bid henry

xiii >> thank you for clearing that up >> a little history right there. speaking at a wall street journal event earlier this afternoon. he gave us his take on the market action. here is what he had to say >> i think the market is now in a wait and see the market is trying to figure out is there going to be a real deal at the end of 90 days or not. and i will tell you there are very very specific issues that the president agreed on but now have to be dealt with on specific wording for the first time china agreed to a specific time frame, specific deliverables and penalties if they don't respond. now, whether we can get that to a real agreement or at least make a lot of progress over the 90 day period or not time will

tell >> treasury secretary saying time will tell in terms of an umt m ultimate agreement there is some question what he was referring to when he talked about specific things and working on spercific wording around those it is not that the treasury secretary is implying some are agreed to but not announced yes. my sense is that he is is talking about the 142 items the administration has been talking about for a couple of weeks now not really an indication there could be something that could be announced in the coming days but mar sense that they are going to work on those over this 90 day period back to you. >> thank you very much we all kind of struggle to f figure out what we can get out of this agreement. markets here slightly off their low. not that much. you can see the dow is down 723

right now. it is down about 800 at the low. the s&p down just about 3% that is about half of the six-day rally. the nasdaq outperformed yesterday and is the under dc underperformer today the russell 2000 down more than 4% is not providing any shelter even though there is trade concerns out there transports on pace for their worst day since brexit what is going on there >> what is going on there? worst performingov of all of the major indexes. it is down about 4.4% right now. if you take a look every component is in the red. we are lower by ups. fed ex is trading lower. arguing that amazon air which is amazon's cargo plane is already impacting those carriers

domestic air volume growth ups having its worst day since january 2015 you have fed ex falling down as well it is more broadly over the longer term prospects and whether the yield curve is flashing a warning light about the economy's future keep in mind transportation stocks very economically sensitive. you have the transports here for the 200 day moving average keep in mind volume numbers and pricing for freight and passenger carriers very strong right now. pushing back fuel prices falling but the transports didn't really i know you have been keeping an eye on this as well. didn't really rally in the last week they are now down more than 2% for the year this is likely to get attention from some of the dows that are still around.

>> it was not economically sick. it is interesting you mentioned the volume had not given you anything to worry about. i think i saw delta airlines it seems like airlines, rails, truckers, it is not yet a fundamental story that we can see, right >> we haven't really seen it certainly when you talk to some of the ceos and different experts from the market and freight market, for example, they saying things are still strong and going into 2019 concerns around trade and other issues everybody seems to be concerned around keeping a close eye and having it play out in a meaningful way it is a very similar story you're talking about a lot of more sort of u.s. based or north america based companies. very capital intensive so

interest rates become more as well they are tied to u.s. economic growths. >> and we have them saying we are not sure what everybody is worrying about >> we'll see >> you will see. speaking of the dow is down 726 points 25099 is your level right now. it is a little over a half hour from the closing bell. if you take a look at the s&p sectors here right now utilities, the lone sector in the green. real estate and consumer staples are outperforming. financials, industrials, tech, discretionary stocks are all the biggest laggers. we have time now far news update with sue hey, sue >> hello everyone. here is what's happening at this hour a top official at the european union says britain can change

its mind he told the european court of justice it would be legally valid. the french prime minister announcing planned increases there response to weeks of some time violent protests. it was the first major reversal in the 18 months of office former california officer and poland president left as they did a predator handshake. a lighter moment captured during the highly anticipated in poland back here at home on a sad note sully, the service dog that was george h.w. bush's companion arriving at the capital rotunda this morning he was accompanied by individuals benefitted from the americans with disabilities act. it was signed into law by president bush 41 in 1990.

not a dry eye in the capital rotunda this morning you are up to date that's the news update this morning. back to you. >> thank you financials are one of the worst performers on wall street today. coming up we have an interview with goldman sachs president, john waldron we have more on what to look for in 2019. >> that's what we hope to maybe glean out of this. this is only going back obviously to the first week of nofr what i wanted to show was a few different points was when investors got what they thought they were hoping for in terms of the known catalysts. it was midterm elections he was softening his tone and of course some kind of a trade truce we got so here was the election and here was the one day pop after

the election everyone said okay this is the as expected result you rolled back over did not really getful any tract on that. made new lows out here thanksgiving week. this would have been the rally i believe, if i'm getting my days correct right there. that was obviously when the fed chairman came out and tried to walk back a bit of his perceived hawkishness. we were up 6% in the last six days we have this one day rally yesterday. we got what we were expecting out of these things.

i think we have to be on alert for that the fact that we are well above these lows means it's not really crunch time to decide whether all of these were false moves or not. i think that the action is coffin sis te consistent but also consistent of a fact that is stuck. you had two all-time highs that were stuck this year all of that stuff is in the market right now >> certainly a perfect storm just looking at this chart though, historically when we saw the rally usually the markets go up from there. you don't necessarily see this type in general for the fourth quarter you have the whole santa claus rally here >> you're exactly right. it was the dominant line it is almost every single time after the last 18 midterm elections or whatever it was you always were up a year later

we have 29 minutes to go let's look at the biggest movers we are here on the floor we are at the nasdaq let's start with you >> i want to point out that we are proving on significant volume here. the dow down about 746 points. yes. it is technical but it is straight concerns. it is a longer term deal coming through between the united states and china a number of strategists also voicing concerns over the yield curve. saying earlier today that the treasury curve signals the economy is poise today weaken. where we are seeing that is the housing sector posting the first fall in more

than four years. orders fell the most in california it is the largest market by refr knew it comes after d.r. whorton sai it made that news last month it has been. the housing is down about 28% so far this year. right now dow down 751 the dollar continues to lose steam here as well >> let's send it uptown at the nasdaq with what's going on there. >> one of the things i have been watching has been the small caps, the russell 2000 it has struggled to get out of correction while it was the laggard as we saw that rally over the last six days the j. powell rally, it has been the leader to the downsides today. we are seeing with those concerns about whether we might see a slow down in the economy and dragging down the small

caps it is across all sectors that's where we are seeing the most new lows today, whether it is bio tech names like tech names like net gear or retail name which today hit a new low we are seeing a lotov of impact in terms of the drag it is coming from the large caps if you combine amazon and alphabet their losses account for about half of the nasdaq's losses today at least in the nasdaq 100 since the last six days we have lost about half of the gains that we have seen today. one of the things we have seen is we are not seeing quite as strong volumes today as we saw yesterday. we'll watch it into the close whether we see a volume spike ahead of markets being closed tomorrow that's one little bit of silver lining that we are watching, that we saw greater volume on

the upside than we are seeing today on the pullback. >> yeah. that echoes what he was saying here maybe that is a little bit of silver lining. we have that unyususual midweek market closer. >> concerns about the economy rise could it put further pressure on tech joining us is managing director and nicholas at nyi school of business professor, i guess the question now is not just for tech but is the economy in general, the bond market signaling anything to us right now that we have to be more concerned about than we were a month ago >> well, we are seeing the possibility of a slowdown. we are not seeing the possibility of a recession

so slowdown is quite different than a recession i actually think that for the tech sector the gdp slowdown is not going to be that important most of these companies are making money from digital ads which are acquiring from tradition traditional ads. it will not really make a huge difference for them. one never knows thousand market is going to proceed. >> it might not make a difference to them in terms of their earnings growth but what investors are willing to pay for those stocks >> you never know. >> you never know. >> how do you think about this do you see this as potentially economic slowdown or do you see there could be higher risk of recession? longer term when you see something like the bond market what does that mean? i think we are having some

technical difficulties with paul paul, can you hear me? >> i can hear you now. >> okay. great. your thoughts on tech right now especially if we are poised for an kpleconomic slowdown or worse >> yeah. i think tech already was in for a pretty exciting probably more negative than positive 2019 in washington it is things like privacy and anti-trust and making it viable for user generated content these are all going to be topics i think in congress next year regardless i think it leads people to look for scapegoats unfortunately i can think of a ton of scapegoats that are justifiable that have anything to do with recession. people look for scapegoats i think a problem is that the democrats have already started to lay the ground work to say

there's not been enough anti trust enforcement and regulation of the big internet companies and that has a howllowed them. if you get a downturn my concern would be that the intensity of the democratic opposition ramps up next year >> do you think that observation holds up that in fact these companies have either grown too big or the industrial structure of tech is right for dismantling in some sense? >> well, that would not be a cool idea. this company produced a lot. it is crucial for the u.s. economy. i think what will happen in the next six months is we'll have a type of regulation quite different from a trust regulation which has to do with market shares but making sure that our information as consumers that goes to facebook or google gets appropriately

used there are some transparency we use. maybe we get paid a bit to give them their formation and then things are going to be different. i actually don't think that we need to interfere in terms of trust but we definitely need to take care of the privacy issue which has been there for ten years. >> and certainly we are seeing it lay out in terms of regulation >> absolutely. >> thank you both for joining us today. >> all right more of them front and center right now. another big story has been the movers lower in some of those momentum focused stocks. one that tracks these names, the ticker here is the u.s.

momentum it is down 10% or more from recent highs in early october. the holdings of the downside you have names like nvidia and look at some of the shares like square the worst performing momentum stock down about 11% or so on pace for the worst days. we are seeing a little bit of a less trading volume in this and the average over the past ten days we are not seeing that much pan ipg rig ic right now back to you. >> yeah. it is depending on your view financials lagging badly today. jp morgan says he doesn't necessarily view a recession as a bad thing. let's get back to wilfred frost. >> as we were saying earlier all

of the ceos are positive but even a recession could be good for jp morgan's share price. here is their chairman and ceo >> i don't look at a recession as the bad thing it is bad for america and for people unemployed. i don't say earnings will be douchblt i say what are we going to do to do even more. >> there are two things. the first is quite reassuring. bank stocks would perform better in the same circumstances this time around. the second thing less reassuring it means that it is one of the biggest banks with one of the most diversified refr knvenue streams. they could make money elsewhere

and saver trading for example. even if share prices fall they can benefit in the long term by acquiring one of the smaller rivals as they did ten years ago. with that in mind if we look at what the regional bank index an since the october 3rd high j.p. mar go morgan outperformed. again, the main take away is they don't expect the session. they are positive about the economy, guys. >> yeah. it is interesting. for more than a decade jamie dimon boasted about jp morgan's balance sheet. i guess you only want to brag about a fortress balance sheet >> yeah. well, precisely. i do think it's fair to say that all banks have a much stronger balance sheet.

you could argue who has the stronger balance sheet either way. it is fair to say that rev flene streams might have changed as well it is not great for lending and savorings marke savings market you wouldn't see changes as most bac banks experienced. regulation hasn't been raised more capital it has been clanged thanged theu do business. >> thank you we'll be seeing more of you there a little bit joining us now to discuss today's selloff is peter peter how would you characterize this today what would you message be to investors that aren't tuning in on a daily basis it is shrinking balance sheets

and fed raising rates. it should not come as too much of a surprise. our target for the s&p was 2805. we revised that down in march after that brief bounce. again, we had a number of concerns including the effective develop market rate on immerging market growth. we had more recent concerns about europe and u.s. housing and we just came out with a piece yesterday on u.s. corporate credit and how many aspects of the credit markets are really at extremes even for this time in the cycle >> i just mentioned we are pretty close to session lows it is down about 3%. it is just around that 2,700 mark, pete you know, you have also been focusing on the possibility of volatility in the bond market as kind of a trigger for some of this stuff going on. how would you describe what's going on as investors try and

gear up for maybe what 2019 has to throw at us >> we can talk about the risk free bond markets and the rates markets and that's something we have been talking about pretty much all year as well. expectation was far flatter yield curve. we have it from 3s to 5s i think about 10 to 15 basis points right now it's really more of a reflection of the fact that we had very slow global growth and that long rates have been by central banks while the fed has been raising rates here it leads us to the corporate credit markets which, again, have lent support. leverage continued to climb and it supports equities in the meantime it is slowly starting to go away for the first time we have seen high yield volatility. it has not been the case until

very recently. >> peter, what is going on with spla small caps right now if you're concerned about trade, if you're concerned about global growth slowing down, i mean the u.s. in terms of economic activity still very strong and in many ways the best house on the block. why is there so much weakness when you look at those particular stocks? >> right the small cap narrative was clearly you should buy it as a protection or a hedge against the trade war that was at the time i was never really a buyer of that narrative really because i felt the credit markets were starting to tighten up a little bit. it is particularly sense tifr to the credit markets especially when you have seen it. it is on fed policy and also on the fact that we'll see continued bill issues into early next year and smaller companies tend to be more than on the

corporate bond markets i think that concern around the sensitivity to concerns and credit is really what's driving small cap action >> i have to ask you a question. is it still above market you can look at the structure and you see two all time highs, kind of a top looking set up has it been able to capture a lot of benefit from great earnings growth and huge buybacks and all of the rest of it where do you tli the market is situated >> no. i think, you know, we have been very late cycled that's where i think we are. i think it's a little bit too early to call the end of the bull market but we are very ver close. it has been our position not much of a year left. i think 19 probably brings only really downside from here. i guess all of that being said i

think it probably is very close to the end of the bull market. >> peter thanks for joining us today. we got about 12 minutes to go until the close here we are moving back towards lows of the session the dow is down 769 points it is industrial names like boeing and caterpillar on some of these trade concerns and what it looks like and whether we could strike something longer term >> yes financials, transports, it is very much a risk there we have been talking about how volumes in general have not been very strong which is plab a signal and maybe not i will say lopsided. i think it is about 93% in declining stocks that's an extreme number a 90% reading is some times what you're looking for when you get

a climactic flush. for the nasdaq it is almost 90/10 as well. you a lopsided action. it isn't kind of an exitous. >> and it is also worth noting some of our guests have this tomorrow the markets are closed in honor of george h.w. bush's funeral. maybe post positioning desis ki derisking ahead of that. it was not up as much as you would have thought because there's a day of no movement tomorrow but also i think it sort of changes some of the things i don't want to get into it. it makes for a lot of noise and repositioning. we don't flow know if there was trade deal and what others might strike a lot to chew on the market is trying to get through a lot of it. we have more here.

>> hello >> i think it's very clear if you look at the charts today a lot of this selling is ti technically driven sheer when we started to drop. the s&p hit 2750 that is exactly the 200 day moving average for the s & p 500. you can see we move immediately to the downside. it happened before around october 11th the day after the s&p dropped we dropped as well in the middle of the day. it is right here where we hit the 200 day moving average dpa exactly the same thing happened. let's call the momentum trend followings, cta's, whatever you want to call them. they are pegging it as an important indicator of the overall market health. lelts look at the three things that move the market so far in the last few months.

we have a little more clarity. that's little bit less of an issue. tariffs and trade wars, we know he had a discussion. we don't know what the agreement was and the terms of the agreement. let's call that a question mark. i think more importantly is the global growth issue. right now when you see the s&p drop like this and you see a flat yield curve familiarly the ten-year yield implying this drop in the s and p and inverted yield curve, that's a risk off signal to almost any that will be out there so in a certain sense there are fundamentals that are pinning the technical moves. back to you. >> yeah. you know, you have all of that to throw into the pot and you don't have really corporate news that you're expecting. >> right >> it seems like we are in this vacuum

if you weren't it would all be about the kind of sleepy seasonal period. >> right >> and another thing is watch the markets these days if you'll notice everything is kind of quiet. the dow could drop 100 points, 200 points, 300 points, nobody pays attention when you go on towards 300 or 400 points you see volatility pick up dramatically you see kind of liquidity dry up a little bit i think there's overall issues with the market watching very careful at certain levels. when you start seeing moves that are a little bit bigger. the market starts moving very quickly and getting very volatile i think it has to do with liquidity issues and how much stock there is to trade at any time >> yeah. he was on earlier. he points out there is another factor that has been driving markets lower. that's everything that's going

on with brexit as well >> that's right. the vote is coming up. it will be next week it is a very very tough sell overall. i think everybody agrees that a lot of corporations are going to have to describe what the effects are. even if this deal goes through corporations in the united states have not really described what the impacts will be on their operations a good part of the s&p has significant operations we heard very little out of these companies about how it is going to impact their overall business this is assuming that the brexit deal comes through obviously in some cases there will be negative everiimplicatis >> index is hang around and numbers down around 25,000 and s&p around 2,700 it did tell us there are about a billion dollars to sell on the close but expects to be a big pairing off for that it seems like volumes will spike

but might not be as much of a mismatch what are we looking for going into thursday at this point? >> we are looking for a little bit of stability today was a technical event. obviously whatever you want to call them, trend followers and a certain number of those is another factor that tells them that so the question is at this point is that kind of selling that is done and ended any positive news on the trade front would be helpful it is certainly better clarity of what's going on i think the real problem is it's very difficult to solve the global growth problem. how do you plug that in? it is a little bit uncertain it doesn't work. if you said tomorrow we are not getting any tariffs -- anymore

tariffs in 2019 you could plug it in and come up with an earnings estimate. sort of slower growth gives you a much bigger target are we talking about 10% earnings growth? morgan stanley says it is only 4% that's a big difference. that fight over what that earnings growth is going to look like is why we are seeing all of this market volatility >> bob, thank you for your thoughts and putting all of this into context y utilities sector on pace to close at the highest level in more than a year trading higher as investors look for relative safe havens finally, take a look at one that closely watches these names. losing a bit of ground today that group rebounded more than 14% off of its 52 week low

>> thank you the nasdaq is down nearly 4% now as we move closer to the close here we will get back over now. >> you know, morgan, looking and we have only had about a handful of stocks all day that have been positive within the nasdaq if you take a look at that wall in terms of the heat map the only one still standing to the upside the tesla it's the only positive one it is only positive. it moved up 91 cents other than that we have seen that a lot of them saying the fact that you have the stock market closed tomorrow has a lot of people saying this is a time to sell today and not go out long it is going into that pause and n trading. the uncertainty of not having a time line as to when we'll get more definitive terms on those chinese tariffs certainly making

a lot of people feel like they are going to sell their winners. a lot of these stocks are up for the year as is the nasdaq 100. you take a look at the faang names, facebook is the only one that is down amazon, netflix and alphabet have gains for the year. a lot of folks are taking the gains we have seen for the last week with that rally they are locking them in for now and starting to think about cruising into the end of the year, mike >> yeah. take the gains if you have them. i guess it should be it. >> we are pretty much at session lows it is down 3.3%. it is down more than 800 points. it started off as a little bit of a downside. it gave way. we have some headlines on brexit and the bond market remained in

focus. the treasury remaining flat at least between the two year and five year maturities very flat. you also have sort of seen this market had this rally yesterday and we have had a few of these events people -- investors thought they wanted it. we got a rally and we are still around this range. >> what is interesting is a number of wall street strategists said this trade truce lacked substance and that we shouldn't get our hopes up. the fact that we saw such a dramatic reversal is sort of surprising the dow is close to session lows it is down about 804 points. even utilities giving back some of their gains the dollar is lower.

yesterday growth driven sectors worked today those sectors giving back gains. some of those stocks with defense ifr characteristics. there are some areas working for that >> banks and transports, two groups that like to see worked were leaders in the downside today. it is never good i was talking about how lopsided it has been. more than 90% in the declining stocks it seems like there were people caught off balance it was even if it wasn't that dramatic >> we saw it wasn't just the big banks. some saying it is due to what we are seeing in the bond market. it is one of the sectors that lead this market lower >> just as a reminder the lows in late october were 2,600 still a few percent there. it is about 1% up year to date

thank you very much. >> of course >> ringing the bell down here at the big board is first energy. i'm going to send it back over to plor began for the second hour of the closing bell. thank you. welcome to the closing bell. mike will rejoin me here in just a moment here is how we are finishing the day on wall street as stocks settle the dow is closing down near the lows of the session down about 786 points 2536 or down 3%. is s&p closing down 3.2%, 2,700 is the level there the nasdaq down 3.8%

7158 russell 2000 closing down 4.4% and the dow transports closing down about 4.4%. financials, industrials, tech stocks, lead the sly today a lot of things in focus yield curve, u.s. china trade relations and the details on what it looks like longer term and a lot of technicals involved in this trading as well. you have got to markets closed tomorrow with the funeral of former president george h.w. bush we have frost at goldman sachs u.s. financial services conference he'll be join bid john waldron coming up. first let's get a check on today's big movers we are here on the floor bertha is here let's start with you >> we did close off the lows of the session. what a day a dramatic reversal from trade

induced rally. the s&p and the dow transports all breaking below the 200 game moving average the key support levels we watched. we also saw selling pick up steam. a lot of focus on the bond market with yield curve inverting. markets clearly playing a defensive tone with proctor and gamble both hitting all time highs. utility names also moving to the upside there were some stocks that were able to buck the downward trend. dow jones industrial down 798. back to you. >> thank you let's head up and see what drove the selling up there hi >> hi. the tech once again the whipping boys we really saw a broad selloff among the worst decliners. we also had the overall tech index and the tech etf, the xlk

back into correction as we saw the selloff. among the big causes today another downgrade for apple. apple one of the biggest drags again, hsbc worried about a future iphone sales and another apple supplier warningov of low demand as well it hit suppliers especially high you saw it in financials like home bank shares, jb hunt in transport and also kraft hooi . >> thank you joining us to talk about the

market is kathy and michael from destination wealth management. good afternoon to you both kathy, how would you characterize the action we have seen on the market today >> it is the wall of worry particularly since 2013 we have seen a wall of worry yield curve, china and so forth. we actually have a different point of view. i have been listening to c flrks -- cnbc all day if you look at the ratio not too tight. we think the yield curve will invert inflation will be much lower than expected. oil is one reason but we think disruptive innovation which is all we do all day long is deflation n deflationary in nature we think the economy is going surprise ton high 150id.

as far as china/u.s. relations i'm seeing a massive global tax cut brewing in the form of actual income tax rating in china and tariff reductions. even germany wants 0% tariffs. they are fine with that. i think that the market is -- i'm happy it is climbing a wall of worry it is the strongest we'll ever have we don't want anybody chasing that >> we certainly don't have that. i know that your idea about the yield curve as being not a recession signal but a deflation signal goes back 100 something years. >> i goes back to the early 19 hundreds 50 years through 1929. the yield curve was inverted with the biggest inversions takes place during the periods of strongest growth. inflation was surprisingly low and growth was surprisingly high >> michael, whether that is the

case or bl whether it proves ouo be the case investors have their signals and are conditioned to behave in a certain way. the stock market has not been able to make a lot out of what we have seen out in front of us. it is low bond yields. what do you tli it means this year >> i think it leaves us with a more uncertain economy i'm not of a belief we are looking at a stronger than expect expe expected economy i don't think there's necessarily going to be a recession but i just think it's just going to be a more cautious world going forward. i think what happens will be a positive if they can settle the trade issues if you just look at what's happening in china, china is slowing down significantly so. so i just think it is really a reaction to what i think is the reality which is the economy is

going okay but earnings i think are going to decelerate and i think it is going to be slower growth going forward >> and, you know, we should offer some context here which is that today's market we lost half of what we gained in six days. >> exactly >> it did seem to come out of nowhere given the news of what we had talk about financials though they did get hit very hard today. some of the names making big moves. citi group all dropping 4% or more bank of america ceo telling frost earlier today that he isn't too worried about the market swings and warning signs from the bond market >> we feel very good about the u.s. economy the predictions will slow a little bit under that is a strong growth rate that we feel very strong about. unemployment, wage growths, all of the factors are very strong including small business enthusiasm that we just put out the other day. >> i have a feeling i know where

you're going to fall in response to the excellentcomments >> there is a lot of disruptive innovation we'll see a lot of this. they will become more like utilities. they do have a net margin problem as the yield curve does invert i think they will not perform very well. if you look at peer to peer lending 26 million people in the united states are unbanked square is a very nice solution it will bring a lot more people who are banked onto that platform as well >> michael, whether they will be slightly disadvantaged they are getting cheaper, the big banks. >> i don't flow if it peaks your interest or not. >> yes obviously the more interested we get. i think banks are responding to the expect station there will be

slower kplik grow slower economic growth the problem today was the flat inverted yield curve banks are more solid than they were ten years ago i think it is an opportunity i don't really agree with necessarily the ceo of bank of america. i think you'll see a reasonable economy and banks are getting very cheap and that's something investors should look at >> we'll have much more in just a few minutes. wilfred frost speaks exclusively with john waldron. the inversion of the yield curve causing problems and one of the factors sparking today's selloff. >> yes it is. steve joins us now with a look at exactly what the yield curve is signaling >> yeah. the trouble with the yield curve it has done a good job of signaling recessions the good news, not quite there

yet. take a look at the longer term history of the 210 spread. those are the recession bands. you can see when it passes below the line there we'll circle those areas there. there it is. it is within 13 to 17 months later. you get a recession. okay how did we get here? it was pretty all of a sudden. what happened since then in the 210 spread of which the two gave us seven basis points and the ten year, plomost of it the decline. it happened after it seemed like the fed was not going to go much further. people went in and bought that here are some of the gathering clouds u.s. china trade said what happened on sunday people weren't precisely sure. more weakening globally. the question is how much does it effect the u.s. and does it keep

hiking or does it slow down? inversion, it has that recession. there is no recession signal if is difference remains positive it is still positive right now there's a chance this is a false signal as you know, it is getting close. we were just around ten basis points a few days ago it was up near 35 >> yeah. and just to put this in context we have seen points in time where the yield curve is inverted we haven't gotten that in the two years following, correct >> not ton 210 other parts might have inverted. if we go back to the one with the circles on it you'll see there's a period there in the middle therewhere it came down and it was not a recession signal what we find is it has to go negative i want to say that other people look at different spreads. they look at the tenure.

they think it has more ak cure si to it this is the one people look at when it goes negative i think it has a perfect record going back further than this. we showed you the last three recessions here. >> and that fed funds is not as close to inverting >> that's right. >> we'll see how it plays into what the fed may or may not do uncertainty over tariffs, another one of the drivers behind today's selloff president trump threatened more tariffs if they can't reach an agreement. the president tweeted i am a tariff man when people or countries come in to raid the graet wealth of our nation i want them to pay for the privilegeov of doing so the trust of this message is

that the president feels as if there is effectiveness in tariffs. he seems almost eager. how do you filter that into your process? >> i have been watching him since the beginning of his administration i think this is negotiating. that's primarily what it is. i know larry kudlo wnchw. i believe he is having an impact on litehizer i think they will go for as low tariff reduction as -- as low tariffs as possible. in the context of it being the tax cuts that have done our economy, done so many good things for our economy i think they are convincing president trump that's the case and to get germany, chien fla, restovna ale

page it is very different than most people think >> what do you make of that tweet? one of the things i think gets overlooked some times is the fact that there are quite a number of countries that actually do have some sort of tariff or some sort of duty in place even as we talk about free and fair trade i don't know that they would be doing that if they didn't think there was an economic purpose or benefit to it. >> yeah. well, that's absolutely true there are countries where u.s. cars are 40% more expensive basically just because of tariffs. you know, we'll have so see that it's probably a negotiating tool to talk about tariffs. you know, generally, and i think speaking of larry kudlow, he has been a believer in this when he was here at c flrksnbc is that f seem to be sort of a head wind

the question is what is the net result going to be as prices go up >> that's why the market responds so positively when there's news less tariffs are going to be good for everyone. that's the hope that we get down to zero tariffs. bmw would probably like relief on tariffs as well in terms of their ability to compete tarnard the world. >> even if the process heads in the direction there it seems like it will be caught up in the back and forth thank you very much to kathy and michael. >> thank you financials dragged on the market today as fears of

flattening-year-old cur flattening >> hi. i'm here with john waldron thank you for having us and congrats on the new role >> thank you >> we have to start with the markets. massive selloff today. you just stepped across the gold man's office >> we have seen a number of days that have been pretty volatile you know, i think it is a continuation of the derisking that has been going on for some time now i did talk to much of our traders. you know, i wouldn't call this out as relative to what you have seen there was derisking going on market participants are more aware, concerned and reacting more to risks that are accumulating in the broader

marketplace. we came into the year i would say with a pretty heightened sense of optimism. we were hearing from clients in the first quarter places where a number of clients would be in one place. it was a bit of an echo chamber on, you know, positive stimulus in the chinese economy in the form of industrial spending that comes out of the government. recovering than what have been predicted. it was kind of up and to the right. it was a pretty optimistic sense. that optimism has gradually waned as more have become apparent and the risks that were new in the beginning of the year and the conversation it is what is now in front of

us it is a relative hawkishness or lack there of. those are becoming more concerning than market participants what's interesting to me is divergence we are seeing among the marketplace and what we are seeing in the real economy it seems like it is doing quite well particularly in the united states when we talk to ceos and other executives in the real economy, clients of ours their businesses are doing very well. they koncontinue to inves. we see them at very high levels. that's a good indicator. there is a good difference between what we see on the corporate side of life and what we are seeing on the other sideovside of life. >> and big bank ceos echoing

that very positive outlook their stocks down sharply today. would gold pl-- goldman sachs dt >> i think it is a leading per se exception of the cycle >> it is giving you a sense for how the market is proceeding.

>> i wouldn't expect to see significant losses i would think banks would do quite well it is maybe less well than they do in the upturn but not what you saw in the last downturn >> what about the volatility itself whether it is up or down? is that changing nature going to mean we will continue to see bigger moves like this >> well, you know, it has ban bit more volatile in the last couple of months i'm not sure i would call it out as a particularly unique we are seeing a transition in many respects from what's been an easy money across the world on the back of the financial crisis into what looks like it will be a tighter money policy in that transition on the monetary side into a gradual -- hopefully gradual period

that is an unprecedented thing for the market to absorb it's not to us that there would be some dislocation along the deceleration in the stimulus it will be volatile. i'm not overly concerned our traders are actually seeing a lot of activity. it is pretty orderly we have seen down days before and we will see down days again. >> what does this volatility meanfor goldman sachs' volatility >> there is a lot of activity. it would generally be good for us it is getting closer to home it is moving in and out and trying to reposition themtss

we expect it to translate into more revenues for us >> what about ipo activity? >> as we sit here the equity business is quite strong we have talked about the unicorns and other large technology companies that are going to have to go public at some point we'll see a little bit of a tipping point where more are deciding they will go public in the near term. persistent volatility will not be a good thing but i wouldn't say one day that's down 800 will dictate where we go. broadly speaking we see a good pipeline building of large scale

ipos in technology it would be a big driver of that >> i want to move on to dive into something that's been in the headlines, the doj said goldman sachs hod deals ahead of the proper operation of om cliens frungss. is that fair for the bank there 2013 or today? >> it wouldn't surprise you there's a limited amount i can say on the matter. we have been involved in the doj for the better part of two years, since we became aware of the situation and then the matter we assembled a team that is

focused on edngaging on the facs of the case. the rest of the firm is very focused on our client fran chees -- franchise. i have been spending offline more of my time in the chief operating officer role really working inside the firm to make sure the firm is operating the way the firm should operate and some of the businesses i should get myself up to speed on. on my free times i have been out seeing a lotov of clients. in those travels i feel quite good about it. our people are very engaged with clients. it is a moment as we talked about at the beginning there's a fair bit of volatility our clients need and want our advice and per specific ifr. -- perspective >> i understand you can't speak

to the specifics of an ongoing case whatever the facts of the case are, when a deal like this is done it is reviewed by a lot of bankers internally by the global commitments committee. regardless of what facts are is there not a bigger lesson about the quality of the review done in this deal >> as i said, i don't want to excellent on the case. it is an act iive investigation. i feel quite good. i know daifvid feels quite good we spent an enormous amount of time on it we invested a lot on it. >> are you and david boosting that compliant function today since taking over the reigns >> we have been in the job a short period of time

i feel quite good about make you are sure it is very very strong. i would also say that we are continuing to focus on boosting our capabilities in that arena and we'll do that. >> i wanted to also touch on whether it has had on impact on the underlying business at gold n -- goldman sachs. you had close to $120 million in fees you were ranked second in the region since then it averaged around 30 to $40 million per year. is that because of this particular issue or is it unrelated? >> when we look at our business particularly in asia we look at it as a region it is a series of smaller businesses and relatively small countries in terms of the overall profile of the opportunities there. china would be a significant in terms of the opportunities that

exist. i saw a number of clients. i never felt better. we are doing very very well. >> have any of them distanced themselves from you in light of this >> we have a cig infosignificane presence they are big investors in our n investing franchise. i would expect that to continue. >> back to the core business when you were head of the business bank it performed strongly do you expect it to continue in the four or five years ahead >> i think the environment for the investment banking business

and our private wealth business, the environment for those two has been quite good. contrast that with market intermediation business or sales and trades side where it has been much more challenging, not a lot of yield curve, more complicated to really create revenue and profit in that side of the business. it is not surprising that business wouldn't grow to the same extent and the other businesses would we continue on building it while we watch the securities business improve. >> i was interested to see you studied english at the university what's your advice to people coming to wall street now? you have performed very strongly what skills are needed today on

wall street to succeed and reach the top? >> a lot of work we have to do is to make very intelligent and substantial intelligence to build platforms and to be more efficient and create delivery mechanisms if i could go back i would rather be an engineer. it has served me well. my advice would be there's an enormous amount to learn when you first start it is an opportunity to ask a lot of questions. there are no stupid questions. you need to immerse yourself in the facts and the details. you need to learn the analytics. you need to get good mentor ship and you need to act like a sponge and grow. >> in the long term when people come to measure david and yours together what is the one measure

you think you want to be measured by ultimately >> i don't know that i want to focus on one here is what i want to say we'll be very very focused on total shareholder return if i had to pick one that would be it. i don't think i will pick one because there will be multiple things that we'll try to use to drive value in the firm. the true north will be long-term share. we have been spending an enormous amount of time focused on reunderwriting the firm it is a plan to talk about to the outside world that we can hold ourselves accountable for >> it has ban pleasure talking to you thanks for the interview >> thanks a lot. >> thank you >> back to you >> thank you very much

thanks to john were wide ranging conversation there. a lot of topics. really a similar message to some of the other bank ceos markets seem to be acting up there seems to be preoccupation with some of the risks. >> i love that if he would go back it would be an engineer. they are engaged for the better part of two years and they are really feeling good about their compliance and really -- >> and saying it has not dachlked tdachlmage the client franchise as far as he can tell. it takes it back to election day

2016 we went from 182 to 192. it has not been this low since >> yeah. >> we'll see how that plays. we do have an earnings alert on hewlett pack ard. >> turning to the outlook calling for q 1rks eps between 33 and 37 cents. a company also reiterating the 2019 outlook they did give between 151 and 161. turning quickly to the segments here their largest rev flenue i up intelligence edge refr flew 814 million. it was up 17% year over year and financial services 939 million

it was down 7% year over year. conference call kicks offer at 5:00 p.m. eastern. back to you. >> thank you we have an earnings alert. >> marvell stock up right now after an earnings. remember the stock was down more than 5% today. it is sort of a wash the stock 33 cent earnings per share. r revenues 851 weak revenue guidance. it is roughly in line. that stock up about 5% making up today's losses back to you. >> thanks very much. will a little relief let's take a look at how we finished today the dow finished at the lows of the day.

basically gave up about half of the previous six days gains and the flaz dak got hit for almost 4% finished down at 7158 it is really prominent russell 2,000 down as were financials so really there was dramatic moves across the market today. they were more convinced that the crown prince was involved in the murder of khashoggi. >> i have see row question in my mind that the crown prince ordered the killing, monitored the killing and knew exactly what was happening, planned it

in advance if he was in front of a jury he would be convicted in 30 minutes, guilty. what's the harm in eating french fries plenty from a nutritionist, one called them starch bombs they note the potatoes have a high glioseemic index. and the food and drug administration warning pet owners that several popular brandsover dog food may have potentially toxic amounts of viet plin d. orlando brand, m pet food, evolve, triumph and sportsmans pride. that's the news up date at thdas hour i'll send it back to you >> send the bagsov of dog food

back >> just feed them french fries >> starch bombs. stock selling off. joining usz now to discuss any buying opportunities is nancy and kevin the 210-year-old curve telling me the economy is not necessarily done we can sit at flat for quarters or years we are still seeing strong signs of growth in the underlying companies that we own and in the consumer we are adding to stocks in our portfolios we expect to see a lot of choppiness you know, 800 points today is not what 800 points was 20 years

ago. this is all on the short term. yesterday head dplines. we see opportunities >> kevin, now i think you have actually been tilted in a direction of more defensive stocks the kind of stocks that out dpsz performed for months now does it give you a chance to look at stuff or what names might you be looking for right now? >> we are still looking for quality. we are very late in the cycle. you a $20 million stock market it is not really a claep stock market the fed is looking to mover rates higher whether it is faster or slower the direction is higher. monetary policy is becoming less accommodative. we have to watch trade as we saw the last couple of days there's an awful lot of uncertainty there. the bottom line is investors are more cautious than they were a year ago even though our own looks as solid as a rock when you look at

foreign conditions we are concerned about what we see there. watch credit spreads and be careful how you doe employee cash here. >> okay. quickly. i want to get some of those names you like right now, nancy. >> yeah. so we are going to be buying tomorrow not at the open of course but we are picking away at apple we'll add some to some of the industrials and we will be selling some of the defense iiv names that have done well for us it is one of the bank stocks we will be adding to consumer discretionary. we will take it out of some of the high performers. >> your names? >> think about things like

coca-cola, ciscoe, smukers, all of those are good businesses with long term franchises and great balance sheets >> great thank you. >> when we come back, fears about slowing iphone sales keep dragging down apple stock. we'll debate whether there is risk when we come back hey, what are you guys doing here? we've been helping you prepare and invest for retirement since day one. why would we leave now? because i'm retired now. so? we're voya. we stay with you to and through retirement... with solutions to help provide income throughout. so you'll still be here to help me make smart choices? well, with your finances that is. we had nothing to do with that, uh, tie. or the suit. or the shirt. voya. helping you to and through retirement. at&t provides edge-to-edge intelligence, covering virtually every part of your finance business. and so if someone tries to breach your firewall in london & you start to panic... don't.

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we're working to make things simple, easy and awesome. >> shares of apple closing apple's dependence on a single product as the reason behind the downgrade. >> it comes on the heels of sirus. according to a new report am offering promotional deals in order to boost sales of its xr

and xs phone models. we have tom here from d.a. davidson and company i guess the market has kind of come around to a lot of concerns you have put out there your price target not far below where we are right now dhou y how do you think the market is set up right now do you think it is close enough? >> yeah. when you get this the market has sold off around apple. the one thing i see that all of these data points by apple from the supply chain, there is a lack of demand it is interesting to see apple trying to convince to replace

your phone they are not replacing it this year that is going to turn into a very very low guide for apple. if i look at expectations now i still expect a lot of disappointment to suffer one thing you mentioned that i think is important is that we are turning to uncertain economic times and apple is a discretionary device yes. it is from the front line of economic tur bu -- turbulence. >> are you tasticking to that >> i am. the way that i see apple now the

depence dense t -- depence dense is nothing new. why i'm bullish is the company's aability to raise the average selling price of their device. if you look, for example, the least expensive iphone is 7.5% more expensive than last year's least expensive device, the 8. having the ability to generate sales growth while selling fewer units and having a very favorable environment as far as u.s. corporate tax code to return cash to shareholders i think that apple stock the here despite concerns on the iphone >> all right looks like you guys set the debate there it is certainly the two sides of the apple store after this big decline. thank you very much. >> thank you the s&p falling below the 200 day moving average we'll look at what it means for the market when we come back

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stocking plunging on wall street with the dow falling nearly 800 points. we look at key technical levels that were breached during the day. >> it is not very satisfying to say it but most was technically driven there was basis behind the idea. sheer the most important idea. we are modestly lower today. right here it's about 12:05 ooets earn time. they have decided the that the 2 hyund hundred day moving average and to a certain extent about global growth in general. you combine it and you have seen the ten year yield come down a lot of people feel is an in indicator of slower growth in

2019 this happened in -- a couple of months ago we saw the same thing happen weintra-day basis. breached the 200 day moving average. the market fell apart. the things the market kirs about. fed and the path of rate hikes trafrs appear trade wars and global growth is the important thing. and that moved everything today. you have to realize also, michael -- you've talked about this we're at the end of a long growth cycle of ten years. we haven't had a significant downyear taut in the "snl" fiefd since 2008 when we were down 35%. we have averaged 9% gains per year since then. you get mean reversion evenly. that's a long-term thought but that's ultimately what's going on here. back to you. >> one of these years it's going to happen with divides i think

we're up a couple% but nip and tuck in the last three weeks of the year. >> bob, thank you. it was a sea of red on wall street with the tech sector hit hard but silicon valley isn't changing course on ipo plans we have the details. >> coming occupy "fast money" a a top strategist says despite the selloff don't panic. he reveals why the year-end rally could be ahead 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.

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welcome back volatility is back in the public markets. but private companies aren't rushing to change ipo plan leslie picker joins with us a look at why. hey, leslie. >> heying with morgan.

conventionally it takes about six months before volatility in the public markets begins to trickle into the private markets. that's two consecutive quarters where persistent correction is there. the reason why is we have seen this convergence between public and private markets with investors investing in both. what happens is when you see mutual funds losing money in the public market investments they start to rein in the investments in the riskier private market investments taking liquidity out of that system earlier we spoke with a prominent investor who participates in both public and private worlds about this phenomenon here is what he says. >> i suspect that what will happen if we do have -- if and when we do have the next market correction is some of the capital in the private market will slow down but you know the merger of the markets will maintain. with that said, i suspect if the markets are strong in '19. '19 will be a big ipo year.

>> now, we are here at half moon bay at a tech conference by jp morgan with a conference called revolution we spoke with the vice president of jp morgan about what this means for the ipo prospects in 2019. >> at jp morgan we haven't seen anybody change a view of timing or expectations. given the markets i think we see what happens in 2019 and macrobasis and what the market is doing if the market is supervolatile people may change plans. >> he said that often times smaller companies are more su the acceptable to the volatility than larger companies. back to you. >> leslie, this is such a key conversation to be having right now. because when we set our sights on 2019 there is quite a number of multibillion-dollar megatech unicorns expected to go public right now. i wonder if just to sort of like play devil's advocate here, the fact that we are seeing as much

volatility as we are would accelerate the plans. >> well, the challenge for these companies and going public in a supervolatile market is it's really really difficult to find the appropriate price. because when you price a company that's never been public before, which we'll see of course with uber when they go public and lyft when they go public is you have to have kpabl place in the market to do that and if it's volatile it's difficult. >> leslie we will certainly watch high stakes for next year in the ipo market thank you very much leslie. stocks staging a selloff today. we check on the big mes namoving after hours. that's next. lies beyond the tech sector. it's about technology transforming every sector. ♪ at pgim, our bottom-up approach uses a technology lens to identify long-term winners. from energy... to real estate... to retail. finding such opportunities for alpha is the true value of active investing.

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you see the dow laggards today, many very trade pesk names. caterpillar, boeing, intel but, mike, what's the number one thing you are watching tomorrow we have the markets closed. >> markets are closed which is interesting. i still think you have to watch the bond market here even though we can say it's overdone, how many people are focused on the flat serve.

there is at a talk that it's mechanical forced selling in the treasury if any of that relaxes i think we see if those lows around 2,700 in the s&p might close. >> that does it for "closing bell." thank you for sitting here with me today what a day it's been. >> great to go through the two hours. and "fast money" begins right now with plenty to talk about. "fast money" starts right now. live from the nasdaq market site over looking times square. traitors are tim seymour, brian kelly, guy adami selling sweeping across the broader markets but a stop strategist says do not panic, the year-end rally will happen he joins us to explain why plus the pain doesn't seem to end for apple getting slammed again. how much worse could it get for the tech giant we start off the selloff, the dow crushed and once the selling started it didn't stop the dow closed dow