real problem retailers have to spend more money on online wages. that's not going well. closing bell starts right now. welcome to the closing bell. i'm sara eisen welcome back >> i felt like we were together because we got so many updates >> yes we are seeing another big selloff. we are down the best part of 2% with one hour left to trade. the s&p now on pace for the third weekly decline out of four weeks. the dow on track for the lowest close since june >> and chocking up the worst

quarterly performance since back in 2011. health care and energy with the latter falling into bare market territory because of continued slides we are seeing let's begin with the fears weighing on investors minds today. that would be global growth. steve is looking at concerns about the economy. let's start with you >> we were down 525 points off the lows we bounced off of that level blast important to know is that the sell off started overseas. it is down half a percent as did u.s. stocks on the global growth concerns around 10:00 a.m. shaved about 95 points off the dow and lower once the markets closed down for the week

the selloff pretty widespread. they could not catch a break with today's losses it has reentered correction territory two energy and materials are in bare market, down 20%. number of stocks hitting lows today a number of banks hitting fresh 52 week lows there is also an active discussion around the health of the consumer starbucks lowering and ds appointed wall street. we are seeing significant moves. costco down. we have nike and carnival on thursday dow is down 475 points back to you. >> thank you very much for that. fears over global economic growth are a big contributor we have more on that

hi >> you know the economic growth going in different directions around the world let's start with china disappointed with declines in retail those are strong numbers but less than the pry jor month and the kind of numbers you come to expect out of china. manufacturing growth hit a 49 month low. it came the day after the european central bank lowered the growth forecast. strong retail sales numbers prompting an upgrade to gdp. 3% is our tracking estimate. atlanta fed coming up the other is 3%. so all of this has the market kind of going this way and that way on the december meeting. it is down when i last looked at it it is that december rate hike.

at this point it would be a lowest probability the other numbers were in the 95 to 100% range. a few days before people were sure it was going to happen. oxford economics titled the u.s. report hot holiday sales the market guys sees more concerns with chinese database >> the chinese economic data is bad to see a trend, the direction, the slowdown. it is still 8% here and sales growth and industrial production up for me surely the worst slowdown is in europe the french gdp is looking pretty soft on top of the comments that's really the region that has had a drastic change >> let me tell you why the

focus. those are the kind of growth numbers in china that a developed country would pine for or even half of those numbers would. the reason why is the percentage that china represents a global gdp growth think of china as 15% of the global economy but 27 or 30% of global growth depends how you measure it if you lose a chunk of that you lose a chunk of growth and everybody feels it it is one of the reasons why u.s. administrations didn't see, you know, bending china's arm behind the back to bring it to the economic means as a good strategy because the fear was it would ricochet back on the u.s >> thank you very much i guess one of the big differences from the beginning of the year is that the global slowdown and weak numbers are hurting u.s. stocks.

remember, the whole first part of the year u.s. stocks were flying to record highs >> absolutely right. i want to cut back to the point that steve was mentioning. french services 49.3 we have been talk about all of this recently slowing down we talk about one of the markets here is the u.s. central bank might be hiking rates too quickly. are they going to be able to hike that's a much worse position to ensure that the economy never has got to a point >> i guess that the protests are hurting economic activity. >> yes >> that's the deal and a lot of them are now looking weaker. >> i think you have to be careful what you wish for. it's not encouraging for next year's global economic growth. apple taking 29 points off

the dow. influential analyst slashes estimates for iphone sales josh has more. >> so apple is down more than 25%. analysts cut iphone shipments by 20% siting lower she mademand he did emphasize that iphone re revenue can still grow there is that brawl with qualcomm they ordered the sales ban on older iphone models over there with a chinese court apple said such an injunction would force it to settle with the respondent causing all mobile phone manufacturers to relapse into the charging mode and pay high

licensing fees in other words it could hurt local chinese players too. apple is going to release a minor software update as it tries to resolve this issue. apple says bottom line here is it's compliant they are countering that apple is continuing to sell the older iphone models. the back and forth continues here, guys there's not an agreement on bl discussions are taking place qualcomm said in november the two companies had been talking apple recently that the companies actually haven't been in talks for months. back to you. >> josh, my only question on this is there a realistic scenario where apple won't be able to sell any of the models in china including the new ones? >> well, remember, apple's

counter has been that the ban here is more limited in scope. they arguing it has been we are reporting that it is based on older software that it doesn't relate to the models running ios xii. but they estimate mainly it accounts for 15% of apple's fiscal 18 sales. i know she is a well known analyst. she thought the injunction as it stands now would be more limited in scope those were her words >> thank you for the

perspective. keep those global growth fears spilling over. is that what is driving the action today >> it is the global growth story comes on the aspects of a lot of different facts we are dealing with here. it is what we have going on. if you look at this data it was weaker than expectations i think that's the broad concern that we see here there really is no where to hide everything is down including utilities. we had over $80 billion from equity mutual funds. we had it out of bond funds. where is that going? it is going to cash. you see that right now they are going to cash

>> you still think that interest rates is the biggest cost for the selloff, is that right >> yeah. i think it's a significant factor we haven't touched on lately in your earlier segment, you know, you have hit on all of the negatives. i can't even add anymore they have been clearly defined they are sentiment their psychology right now and they are all real but there are some positives corporate earnings are expected to grow. you have low unemployment in the u.s. you have u.s. growth that hasn't fallen off a cliff yet those are fundamental factors that i think are being discounted right now in this year end process we are going through. they are real as well. i think what it all amounts to is markets saying what have you done for me lately and adding up

to a swirling situation where you have got to be, you know, defensive at some level plans for losses but also preparing for gains as well. i don't know if you can game plan this right now. >> as we try to interpret all of the data what kind of signals are you getting both getting bought treasuries as far as where we are headed next on stocks >> today rates were really if i were it was on the tight side treasuries holding in nicely seven or eight points off the yields over the last week or so. i think that's very significant. many believe that a large portion of the drop in rates was probably dliquidating. it is the yield curve, the treasury come plek aplex and thk side it was the big feature day

it is just below making new fresh highs not only for the year but going back to mid-2017. i think next week's fed meeting will be very critical. they should raise a kwquarter point. i want to see how they all react. at the end of the day i think retail sales shows us it doesn't show us if the globe is shrinking the u.s. has to shrink at the same pace i think it's that relative measuring of how much we are effected by the rest of the globes more weakened fundamentals versus ours but definitely solid by comparison >> the december lows for the sr s&p, is that a worrying sign >> yes is it that we have gone below

those? >> we are retesting those lows ch we start looking at the next one. we are right there right now we have been dancing around the last hour and a half around 2,600. if we do that we can retest the february lows. beyond that. >> and closed below? >> closed below and stay there for some time. we'll take a look at where the next levels are. i have an ultimate signal around 2440 today it is quite possible that we could trade all the way down there. we need to get some leadership back from the growth sectors that we are looking for including the small caps we are not seeing it right now i think there's a lot of confusion about which way to turn >> they had the worst week >> they did. >> and they are down about 9%. nasdaq composite month to date just in two weeks down over 18%. you're seeing them really carry the names out.

>> 18? >> 18% nasdaq composite. you can see that reflected in no better story than with costco. it had decent earnings because they are margin pressure they got taken out with that they have same store sales increase 9%. they get sold off. people are afraid right now. >> very quickly. we have these pullback opportunities. >> yaechlt i think all of the beaten down areas, financials, energies, tech, bio tech, we owned costco i think this sort of environment presents long-term opportunity if you're patient. >> thanks very much for joining us >> thanks. still ahead here on the closing bell, much more on the big wall street selloff including one particular segment of the market to watch out for >> and shares of johnson &

johnson dragging down afteran exclusive report it explains how damaging it could be for the company the ocisavg stk hinits worst day in years down almost 10%. ♪

ignition sequence starts. 10... 9... guidance is internal. 6... 5... 4... 3... 2... 1... ♪

this is moving day with the best in-home wifi experience and millions of wifi hotspots to help you stay connected. 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 to the closing bell we are down on the dow which is off the session low. nonetheless a fairly ugly friday afternoon set of markets >> johnson & johnson getting crushed today after they say they have known about asbestos in baby powder for decades they say the article is one sided, false and they say it is an absurd theory >> it is now down 4.5%ier to

date let's bring in from jeffrey. thapgs very much for joining us. what do you make of this story very strongly worded pushback from the company >> yeah. thapgs for having me it is a very interesting story it >> a huge component of people have a great view given the lack of information we have. we have one story. we have a company respondsing back but without a lot of information it is tough to actually say what the impact will be. everyone trying to figure out what the dollar will be. all we flow is that we heard issues around baby powder. investors are used to it

it is more of a reflection of stock positioning, crowding into defensive stocks even if you were to tell me the world was going to end i think j and j would be a stock investors would want to own. i think that's really is biggest issue today. >> so you have no way to quantify how big of a liability risk they face >> it is very difficult to tell. some analysts have taken the number of patients and they have multiplied them by what they think the average liability can be we have seen numbers just today out of the wall street kplunty out of 5 billion to potentially over 20 billion. >> all of that is under the amount of market cap this company is losing. >> that is totally right again, the stock move in my mind much more of a reflection of the market dynamics, the fact that it had been a performer, levels

coming in today and the trading dynamics and nature of the market is why they are losing more than the potential damage i know a lot do not think it is that big of an issue >> clearly this is weighing on the broader sectors today. ier year to date it has been pretty strong. do you think this big move is justified? a broader question really about the sector about whether profit taking is a reasonable thing to be doing >> yeah. i mean we put out a note last night on this exact fact pattern. it is in terms of winners and lose ersz, how investors are positioning into a new calendar year, you know, noting that the large defensive light stocks had outperformed in health care all year i guess i'm not totally

surprised. personally i think the damage that is being done is too much just given what we have learned today. it's not all that surprising given when that news hit timing and positioning more than the actual headline. >> thank you for join us >> thank you many analysts are coming out saying it is an overreaction >> a little under 45 minutes to go dow is down almost 500 points. it is 486 points solid declines here. it has been the biggest loser of the week can the feds put an end to this market volatility?

we'll get a meeting next week. two experts will share their predictions and how the market would react. >> and potential good news coming out of china today. we'll talk about the names that trade to befenit closing bell back there a couple of minutes

what's critical thinking like? a basketball costs $14. what's team spirit worth? (cheers) what's it worth to talk to your mom? what's the value of a walk in the woods? the value of capital is to create, not just wealth, but things that matter. morgan stanley

tnchs nasdaq around the flat line it is into a volatile week coming up despite the volatility they say the bull market is far from dead. he'll explain why ahead. >> laying out a potential red flag in this market. >> one of the things that worries me is how fragile we seem to be. >> we'll discuss the impact rising rates could have on one rate sensitive sector next. ♪

♪ the new capital one savor card. earn 4% cash back on dining and 4% on entertainment. now when you go out, you cash in. what's in your wallet? you might or joints.hing, for your heart... but do you take something for your brain. with an ingredient originally discovered in jellyfish, prevagen has been shown in clinical trials to improve short-term memory. prevagen. healthier brain. better life.

picking up into the close. there is the s&p sector. you can see it as a sea of red the biggest losers health care, energy and you tillties and materials doing the best all are lower by at least half a percent. >> not good to see utilities as well >> they have been higher lately. they are near the highs of the year cnbc updates sue has it for us. >> hi. here is what's happening at this hour everyone. wisconsin governor signing a

sweeping packageover republican wrichb legislation that weakens the incoming democratic governor and attorney general he is ignoring the will of the voters >> all of these things remain consistent that is the overwhelming kpektdive authority that they have today and will remain constant for the next governor >> former governor taking out of consideration as president trump's next chief of staff. he called it an honor but says now is not the right time for him or his family to undertake that assignment. >> the boston red sox and yankees are open the first series in britain with a night game and conclude the next day in the amp the june 29th game will start at 6:00 p.m. local time the afternoon game will start at

3:00 p.m. or 10:10 a.m. local time both will be televised here in the u.s. nationally. >> what is the date? >> the date is -- let me turn my page over. it is the 29th june 29th. >> you want to go? >> why not >> i was going to ask you how you think it would go over >> i think it would go over very well all of those nfl games always sold out >> that's true >> the special games for sure. >> i think it will be fun. >> i will google it. >> i don't know the stadiums offhand. >> yeah. it would be good >> we'll leave it there. thanks very much we'll see you next hour. >> you got it. we have 27.5 minutes left in today's session. we are lower by about 2% as we approach the close

let's start with you it is the worst performing sector shar shares plunging on track for the worst day since october of 2008. other stocks leading the dow lower. it does report earnings and some other tech names i also want to highlight some weakness in the retail space they are moving to the downside the latest indicates consumers are still spending costco down 9% after results disappointed walmart and macy's also trading lower. >> let's send it uptown now. >> good afternoon to you as the dow drags lower the nasdaq does as well. take a look at the percentage

plo losers here. i want to highlight costco and csx. you can see that there when you look at the point impact specifically that is the stocks because they have the most impact. it is tech straight across the board. you're looking at amazon, apple of course and adobe as well. that's something to note tech is definitely a big lagger. there are a couple bright spots i want to point out here hasbro is higher and american airlines facebook was trading higher for most of the sessions since then it has turned negative, guys >> thank you very much for that. let's get back to the broader parkts par markets as we head towards the phone. >> what were you thinking taking a day off in this market

volatility >> very good i'm trying not to -- i'm trying to skirt the blame for it at least. >> the levels are looking ugly and more than 2% decline >> yeah. and the market has been trying to sort of defend the bottom end of this. it has been an unconvincing john of it. i think one of the things that stands out to me is kind of orderly and it's not about reacting to headlines. it is repricing for a slower outlook and that year end. the context to me has always been the market has failed to seize on very good opportunities to bounce into rally what we see right now is i think everyone is reviewing where we are right now in terms of evaluation and the technicals relative to where we were like in 2015 and early 2016 the bottom line of that is we are kind of close but not quite

there. that's why i think it's a little bit nervous ahead of the fed maybe that's going to be the trigger to say okay. fine we are add risks back here to me it's not showing like it's a washout. >> we should mention we are pretty much at session lows. are people also nervous after some of that this morning? is it much more about global concerns than u.s. interest rates? >> yeah. definitely i think it really fits into the kind of nerves that have been building up in the market fra frankly all year they refused to price in the huge earnings. the fears were going to be policy between the u.s. and the rest of the world and growth diversions i think it is striking a raw nerve. you know, it is -- the market is at a state where it is reaching

for reasons to be more concerned. it was easy to find them today i think that idea of the rest of the world slowing down and maybe we are back in this environment we got used to, it could be fine if the feds not going to try to treat this as a full employment high pressure u.s. economy that they need to restrain. >> mike, earlier the president tweeted out on this, tweelted about the economy. it could happen and rather soon. is there a time because it did not this time. there is sort of a process as opposed to getting the signals from the administration. we have to handicap how the process is going i think investors also have to figure out if the shape of any deal will clang the trajectory

of the chinese economy or if it will kick in fast enough to remove that negative if you have people revising down u.s. industrial earnings because they are negative and china is slowing down how much of that is offset by saying at least we don't have tariffs i think that's the tricky part right now. i think the market is inexpensive. it is not very challenging right now. the banks can't rally. there is a shadow of some type of potential credit stress out there. that's what i think is holding back >> just quickly next week, if there's a fed rate hike is that expected already or would we rally more if we don't get it than fall if we do get it? >> it is kind of a close call. i think the market wants to have a hike and would probably prefer that the feds follow through

with what everyone seems to feel expected to do by the way, the volatility is not at the severe levels many think would reflect the type of financial tightening that would move the fed at this point i think a hike and some knowledgement they are going to have to wait and see in the first half of next year i think that's probably the game plan do t . >> i love that they do like the nfl regular season games, competitive games in a foreign country. the premier league comes out to do super official friendlies

that don't mean anything >> i will do tutorials for that beforehand if you like >> they will be needed i'll sign up for that. >> good news for auto makers today. it will cut tariffs today. we have more now with phil >> keep in mind we are talking about maybe 2% of all of the autos that actually end up being shipped over and sold in china it is a very small percentage. now that china said we'll be cutting the tariff on those vehicles when they are sold in china. it was 40% they will bring it back down to 15%. that is effective january 1st. this is good news for mercedes and bmw. why? because they manufacture the suvs that are sold in china, most of them, not all of them but most of them manufactured in the u.s. and exported over

there. most of this news baked into these stocks other news regarding china comes from tesla because of news it has decided it will be cutting the prices on the model s and x. keep in mind that the prices are going down to where they were before the 40% tariff was put into effect. in terms of revenue from china tesla is not getting a lot right now. initiating coverage. guys, down about 3% on the day back to you. >> all right thank you. >> another upping their target this week on tesla >> back to the broader market he is short wasn't one of his biggest market concerns. listen >> one of the things that worries me is how fragile we

seem to be to small rises in interest rates right? if i were to tell you nominal gdp growth was 6% with record low unemployment and good jobs numbers and you said you were having a problem with 3% interest rates you would say what -- i was just in at the summit here. you know, people were talking. we are talking about what a slowdown they have seen in the last two months. >> yesterday talking to sara lots of interviews on closing bell >> yes >> last week rises rights sited for the housing market in november good afternoon to you both

is it rates that is sparking it feels like they have pulled back from their peaks. >> yeah. people don't pay attention to the day-to-day we have gone from a 30 year fixed to about four and three quarters once it got into four people haven't seen these numbers of fours and fives and sixes in 15 years. you have the global financial picture that is upsetting people, tariffs, brexit, trade, special council but also the price of housing that freaked everybody out. it's like wait a second. i'm not going to pay this much for property interest rates went up too i'm on thesideline

>> we are picking up some concerns in north texas. >> we think some of the concern in the equities is a bit overdone the market is normalizing some if they will have some demands than others at certain price points where you're seeing it you're seeing it in the more discretionary buyers. >> in terms of where we expect

rates. suggesting the rate part of the bargain unlikely to rise any time soon. >> we don't have an official rate forecast covering housing you have one we think existing marks and new home seams are up year over year generally i would not expect a move, you know, i think we will see more tightening. we are not seeing affordability is really impacted you're not seeing these.

so it's really where your position is in the market abdomen who the buyer is i think what people forget is represents have gone up a lot too. when you're looking at the payment you resiliency after that psychological pause i think we in the middle of that right now. >> we have to keep our eye on that market selloff. thank you both on housing. we have a market flash now >> the intell and tpg are in talks to sell for more than $4 billion that's according to cnbc

he publicly traded until 2010 and intell bought it they sold about 50% of that business to tpg. to your point there was an interesting report last month that thomas bravo approached semantic with a takeover offer it seemed to put this deal in questions there. for much more check out the story on this. the headline here in talks to sell mcaf eree for cig nef cant more than $4 million global growth, that i hrade all laying on the market >> in recent weeks an about face in a very risky corner of the

market the best of those is more than 80% of new characterized it gives borrowers more flexibility when things go wrong. recently warned about the market in an interview saying if there's a down tourn in the economy a lot will go in the leverage loans market would worsen the bloechlt now there's fresh evidence this may be abating a record $2.4 billion came out of the leverage loan funds this past week that is really shifting back in

favor of and better quality loans from borrowers. it could make buy outs more expensive. >> i guess is this the next big risk for wall street if it's a general sentiment swing for equity markets that's one thing. wall street banks themselves will probably welcome this part of the loan market pulling back. it has suffered a little bit >> wall street banks act as a syndicate where they will talk to the borrowers they syndicate those out as it becomes riskier they have the ability to be stuck with some of that on their balance sheet. it can create losses for them.

this is on the banks to make for more stringent covenants it is really on the banks to do that >> okay. thank you very much. >> i was going to say more and more raising a flag. >> let's check out the market. the dow is down more than 500 points here. more than 2% a 2% decline for the s & p 500 more than that for the nasdaq. it brings all of the major averages into the red for the week picking up steam here. what is the primary driver >> it seems to be one of the recuring themes that has been behind the selloff

it is concerns about global growth some of the data that came out in terms of economic growth in china was a little bit softer than expected. some of the data in europe was softer than expected retail sales were good but a gauge of manufacturing was a touch lighter than expected but quite firm in the expansion nar territory. sorry. go ahead >> it has been kind of weak all yearlong it has been coming in lower than expected the u.s. market has remained pretty resilient the first half of the year it ran up to record highs as china was slowing down why now? the vulnerability for u.s. stocks >> i think we are getting to the point in the feds hiking cycle where there's a lot of questions about which way they go from here for that reason there's a lot of uncertainty in the markets about

will the fed make good on their plot and do it three more times or will they pause there is a lot of debate on wall street about what is the next move from the fed? until we get more clarity it will hopefully come next week markets may continue to be some what fragile >> define what clarity would mean to you next week. would it mean not hiking at all or can they hike and give a better description about their plans and still be taken by the markets? >> so we are expecting them to hike next week the markets are expecting that too if you look at the fed futures. the fed tends to not want to surprise the market with respect to that. i think a hike is likely i think messaging about what the future path is in '19 will be very important i think the fed has a lot of flexibility here it is important to realize here.

inflation has cooled off oil prices are down. the dollar is up there has been softness in housing housing and things like that it looks like if they want to pause they should be able to do that i think markets would take it quite favorably. >> so what stops the bleeding here it feels like we are in this vicious cycle. everyone wanted interest rates as well. what is it going to take >> yeah. i still think there's uncertainty around the fed i do think some parts of the financial markets have priced in a lower trajectory i don't think the equity market has done that at all once we get a clearer message from the fed that will go a long way. we have to see the data come

through. i think the fears that we are about to enter a recession are going to have some sort of peak in earnings. we really don't see that it will take a few more months of companies putting up the number and the economy continuing to progress it is not going to be -- there's no one silver bullet but i think over the next several months we can chip away. i think getting to an agreement is very important. >> okay. thanks very much for joining us. financial stocks have fallen into bare market territory officially we have more on the biggest movers at headquarters >> that's right. the s&p financial sector is down about 1% holding audiotape little bit better than the overall broad market is is tumbling 20% from highs.

jeffreysregions financial fift third bank and morgan stanley. back to you guys >> thank you very much joining us by phone to comment on this david is here and chief economist has spotted the weakness a long time ago i guess you're not surprised to see days like this what stands off to you >> it is really the extreme level of volatility. i think it's the overriding story here even in a bare market it's not normal to get these massive swings even on the days when we are finished modestly higher they are sharp lip throughout the day. i think the word here is volatility it is not so much about the fundamentals and it's not about evaluations. it's about liquidity that's what is causing this weakness what makes december is special is that the feds balance sheet

is shrinking you could rely on people like ben bernanke or yellen to be with theinvestor it was the other thing that was happening. so it is the strength of global liquidity. it is bearing the brunt right now. >> can the fed do anything or say anything to calm investors down next week >> i imagine that, you you know,

firstly it will probably raise rates. i think if they don't it won't make them look very good markets are pretty well priced for it they will probably raise, you know, say they will press the pause button. so the feds are already priced out. the fed turning hasn't been a savior for this market that's the bottom line >> we got to go. thank you for jumping on the phone. over to you on the floor >> okay. thanks very much as you said, just about three minutes left until the close we are down 477 points the dow is down 450.

>> i think it's a culmination of a lot of things. you have the fact that we are heading into the end of december here we have a very busy week here. we have to see if we'll have a santa dlauz rally here a lot of people are expecting it the markets have been naughty, not nice >> december has been terrible. >> yeah. we are approaching march's lows. >> yeah. >> is it important that we close above that level >> i think we will i just entered the closing bell people don't like holding them over the weekend today they say it's becoming here in the last few minutes i'm seeing myself that we are heating up here. markets are getting very

aggressive >> okay. thanks very much we have just over one minute left of trade to start with the s&p. it is down 2%. down about 500 points as we approach the close it is down about 2% in asia today and down 1% on european trade today. yes. international picture but we continue to sell throughout the day. it is not just poor international sentiment. >> started with global market concerns some include starbucks and costco that weighed on this that is playing out here in the u.s there was good news on the u.s. retail sales number. i think some of these other concerns not just here but in china weighed on stocks.

>> the big stock there down 10%. >> we are down 2% pretty much for the decline for all three of the major indexes. it that does it for the first hour of the closing bell sara, back to you. >> welcome to the closing bell wilfred will rejoin me in a second here is how we finished up the dow low are by almost 500 points, down 2% into the close the s&p i was watching the

levels this is down 1.9%. nasdaq got slammed technology hit hard all across the board. down 2%. it is all negative for the week. we are tracking the worst quarter since 2011 coming up mad money will be here to join us his take on the market volatility, what you should be doing with your money. we will also talk to the fast money game first, let's get straight to today and just what happened we are here on the floor of the new york stock exchange. it is covering up at the nasdaq. let's start with you >> closing down 495 points off the lows still an ugly session with dow closing down 2%.

it started with global growth concerns, retail and even in europe manufacturing came in lower than expected. we had auto registrations declining lead by the u.k. and italy and germany. all 11 sectors trading lead by health care and energy with oil prices back below $61 seven are in correction. i should point out financials are now in bare market it is now down 10% from highs on these trade concerns and global growth story one sector throughout the week that has been posting losses is financials in bare market. take a look at some of those banks. goldman sachs and citi and wells

fargo. a lot of economic data on the housing front. the home builders continue to sell off the fed meeting specifically multi-nationals back to you. >> thank you jackie has the big movers there today. >> hi there. to close the session down about 2.25%. it was an ugly day to close out the week as well some interesting kn-- let's loo at the faang stocks. a little bit lower each on the day. it was pliksmixed results. take a look at the chip stocks lower on the week but seeing gains of about two -- sorry, seeing gains of about 2 to 12%

today's specific losers and the week's biggest losers were costco, monster beverage it was spread across other sectors as well. >> thank you very much on some of the movers. joining us to talk about the market, barbara durant, ben is also here. global equity strategist, it is the focus -- if the focus is on weak china growth what do you do with that? how do you know where it is headed next and how much control they have? >> they have more policy and flexibility than any where else right now.

>> it is turned on at the moment, right? >> i think you're beginning to see some of that beginning to turn up i think tax cuts >> what was your reaction about today? >> another gross scare some was definitely weak my point is china has the ability to respond to that i think interestingly is it improved a lot in the last couple of months i think you're missing that event and we are beginning to see it you had the biggest week of equity funds every this this week i think we are beginning to find a bottom here. i think that's that key. >> develop they focus on domestic u.s. growth and say it

is a buying opportunity? >> yes and no. a number of stocks have come down to interesting entry points it is far more exaggerating. i think we have to wait until we see this get out of the market i don't think that will happen for a few months we have to have some resolution on china and what the fed says next week will be very important. >> and earnings visibility the market action here has been terrible >> terrible. >> how much has been taken out where are the expectations >> it is as if we are going into an earnings recession. it is always a possibility but it's hard to see how that will happen specifically when you saw retail numbers today it is healthy, happy you have full employment it's not likely to change in a nano second. it is up .9% it was pretty strong

>> 70% is the service economy. it is well overdone. we'll have to see and listen to what management says and get reassured. we are in total fear all of the winners were taken out and violently sold you had to stop buying the dips. they are not sure where they go next >> let's bring in jim cramer jim, clearly a lot of concerns about the international growth outlook. do you think it is overdone when it comes to the u.s. equity market moves >> i think we have to factor it in just listen to my old friend barbara. you are always as good as ever i agree with you the fear you mentioned is that on any bad news there's panic. any bad news there are the same stories keep driving stocks down over and

over again that means if you're fighting the fed and fighting the tape it is treacherous it is bear market activity no one wants to admit it some sort of earnings slowdown but you don't have one when you have retail sales like that. you don't have it when you have full employment. you have a market where feds should have waited to see and they didn't and they committed to a course that looks a little bit silly. >> he said yes that could remain part forever would you like to hear something as dovish as that? do you expect to hear it >> one of the things that happened is some how the idea of patience and waiting has become rash and some how become judgmental some how the fed confused

prudence with rashness what you get is j and j down 15. you get most of the tech stocks down we have got so many bear markets going ton rigon right now it is stone national park. >> are you which got sold off at what 9% or do you wait and see what the feds says >> i think they are good examples i think they didn't do any homework and they are into a story that i'm not buying into costco just reported good monthly numbers. it is the kiss of death. i thought the number was fine. they have $20 billion. i can you, you can seen markets

for a long time. you smell panic. do you buy it or sell it >> usually i buy it. i will be more cautious here i think you could nibble and buy your favorite names. i think you have to wait a little bit we have to see volatility here i'm with you you usually buy panic >> it is a treacherous market. i wouldn't want to commit a lot of money i also think if you start buying stocks, i don't think you'll get hurt that bad. i think it will work for you >> you spoke with kevin johnson. we are looking more of that extended interview what did you get from him in terms of how strong or weak the d economy is in china. >> absolutely. i think what's happened in china is the consumer is gifting more

than ever. the consumer is buying more than ever it is not inexpensive. the expansion plans are very robust that stock ran up from 52 to 65. anything that runs up into any news goes and sells off badly. again, bear market behavior. i'll use the sound >> we are getting close to those levels like financials >> there is proctor and gamble shouldn't there be more than proctor? one stock that's good. i know you're from cincinnati and all but honestly >> the banks closed the lowest level -- >> don't do that to me

>> don't put me in that house of pain >> should others be taking it out at the moment >> he is a multi-billionaire i think they will do fine. some of the banks but there are so many really good stocks that don't have inverted yield curve to worry about and where the numbers are too low. i think if you buy below tangible book you'll know we'll make money banks shouldn't be able to do that i have been saying that for $20. i got to tell you, i'm wearing it at this point it's a bad cologne >> in your filming days, yes >> prok forand gamble is one of

the only dow stocks. >> why did you give her the chance to talk up again? feeding her. >> i got to other 49 states covered. >> thank you very much >> i know it's the eisenhower -- >> he knows. >> he never talks about philly and you never talk about london. >> i haven't talked about london for -- >> 24 hours. >> yeah. >> thanks very much. >> did your take norwegian air back >> they make you fly on the wing with nor wwegian it's a little cold >> state of the union in tonight with kevin johnson and dara, uber ceo

>> still with us, barbara and ben is here. ben, what would you tell investors to do ahead of what is becoming a very important fed meeting? you say there is some uncertainty. >> i think you need a dovish hike i think that's what has changed. >> we noticed that conditions deteriorated >> i think you need it to come out of the guidance. i think if you do that then the market begins to calm down >> yes i think we are not going to get this rally that we are looking for. i think we wait for the fed but we have one thing. we have serious risk of impeachment or indictment with the president of the united states you know, that i don't know -- that's an uncertainty and won't

effect the economy if that happens it has not been good when children on was impeached. that is usually a temporary thing. that means more volatility >> to come back to the main point you started with european growth is. does that effect your estimates for u.s. growth next year or is this just a market factor? >> yeah. i think it is more about fears of policy mistake and fears of china. >> it does impact the u.s. we talk about why are we effected the dollar was up a full percent this week. >> you know, why hasn't gold done that? >> it is only up a buck or two >> what is the top sector pick

for 2019 >> i think you need to be betting on that rally. it improved significantly. i would be looking at tech and fading out of those defensives it is why it is such a violent threemonths. >> all right we'll leave it there thank you very much. market volatility ramping up ahead of the highly anticipated fed rate hike. we'll speak next to our top economists on what the fed could do to calm investor fears. >> shares of apple falling again today. we'll have details on that call straight ahead you're watching cnbc first in business worldwide

will it feel like the wheend of a journey?p working, or the beginning of something even better? when you prepare for retirement with pacific life, you can create a lifelong income... so you have the freedom to keep doing whatever is most meaningful to you. a reliable income that lets you retire, without retiring from life. that's the power of pacific. ask your financial professional about pacific life today.

this is moving day with the best in-home wifi experience

and millions of wifi hotspots to help you stay connected. 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.

it started back in october you pulled out some charts to highlight. what are you playing the role of mike santoli? >> i haven't got there in time we will be doing that. we will be doing that a bit later in the show or are we going to do it now we are working this out. >> let's talk fed. >> we know people will miss out on him >> you have to get ready >> the fed is expected to meet next week. everybody is expecting an interest rate hike it is causing a lot of angst as jim cramer just told us. let's talk about what he will or won't dohere

>> it lowers the path of interest rates in their plot at least over the next year >> kale back those projections >> i think they need to market their forecast the fact is that it hasn't been cooperating with underlying goals. if you look at the change it is only running like barely 1% on a three month basis. those actually hooked back down. he is also kind of revived looking at the tips market which is something that i think was some what abandoned by yellen. you know, i think that the data and obviously what has gone on isn't really aligning in my view

for a hike i think if they want to be data dependent on blast going on globally with respect to growth i think the market is sort of underestimating them skipping the meeting all together >> do you think it is the most important aspect and what exactly are you looking for? >> a couple of things. they are going to do a rate hike it is inflation and has picked up half a percent over the last year what they are worried about is future inflation that said this is the pivot you'll see the statement pulling out addition flal gradual rate hikes they will get themselves some flexibility i think we'll see the dots come down more in the two and three range to show there is more concern about where rate hikes are going going forward. there is also a flexibility that it will underscore in the press

conflict itself. we have that after every meeting now. they don't have to time rate hikes or whatever comes to the actual quarterly forecast that they have and they can really on a more realtime basis say how they refused to revolve. it is morrise risks. being able to convey that is going to be very important going forward because the fed is not turning a deaf ear and they are seriously the role that uncertainty are playing in the outlook. they are going to be trading much more cautiously in conveying that as well >> inflation has picked up lately it is the lowest it has been if

decades. >> they wouldn't be delays if you look at the data they are delaying because you mentioned inflation going up wages are going up price inflation is not going up. if you look at it -- >> the data backs up a move to come -- >> not only that i mean look at dollar going up. it has been strengenning since their last meeting they are supposed to be data and forecast dependent if the dollar is strengthening it increases for next year it is going into2019 and we know that the stronger dollar will put downward pressure >> it's at the same time we have

this sort of issue of tariffs. all of the tariffs, not only do we not know what will happened with trade operation it is one of the problems. people are afraid to move forward. i think more importantly that there's these winds that wages have picked up we have seen some slowdown in inflation. some of that is oil related. others could be pushing inflation up moving into the year ahead it is important to put into context every client i talked to, plans to try to raise their prices in january because of the squeeze on margins that will become much more apparent as tax cuts play out in the first quarter. the fed knows that too so they are trying to balance all of these factors they will do so by also saying they are going to tread cautiously they are acknowledging the economy we had and acknowledging we are slowing down.

the question is how far will that slowdown go they also don't want to be ahead of the curve in terms of not dealing with an economy that is showing some wage acceleration and could have more that's a really hard place to be going forward. >> you'll have to leave it there. thank you for joining us >> thank you >> thanks for mentioning my instagram. >> there we go shares of costco sinking slugt slightly increased margin pressure we have more on how they are trading that particular name they are getting ready for the show back with us in a couple of minutes. don't go any where

♪ ♪ move to the enterprise-grade cloud that's built to handle all your apps. ♪ ♪ the ibm cloud. the cloud for smarter business. >> we finish up the day on wall street lower across the board it r5e8ly picked up steam across the board. of 496 points. the lowest level since about april and down almost 2% tech getting hammered down 2.25%. the russell index fairing down a little better. it was down going into today

transports anything economically sense tifr sensitive as well. >> hi. here is what's happening at this hour mike pompeo and james mattis meeting with counter parts it follows public disagreements. mostly centered on trade issues. >> of course given the close relationship it will undoubtedly arise time to time our countries have always worked closely including through regular and open dialogue like we have had here today >> former chicago police officer jason van dyke will be sentenced january 18th >> and spirit airlines tops the

latest ratings for on time flights. that's a stunning turn around for a discount carrier that consistently rated the tard diest three years ago. they say 89% of spirit's flights in october arrived on time putting it ahead of hawaiian airlines congratulations to them. that's the news update this hour have a great weekend >> you too >> you too, sue. thanks very much now sharesover costco getting crushed after weaker than expected earnings is this a bad sign for retail? we are there getting ready for that we'll break it down for us >> you know i'll turn there and say we were talking about costco last night it was because of increased spending online and higher wages. it has been a story of retail so far this season. >> if you think about the

competition you get aldi, walmart. you have walmart competing on multiple fronts. they have never had more pressure on the square foot has never been higher. >> it was up 11% in this quarter. we have great retail sales you would think with consumer being this strong retailers should do very very well especially because it is 11 days until christmas. >> oh. >> happy holidays. >> ho, ho, ho. >> don't confuse that consumers want to spend with what they should be spend spending i'll never under estimate but i don't think they should be spending quite frankly if it lasts for much longer the consumer which has been vibrant and strong might get into their shell it certainly could >> i guess i would say that the first half of the year was

having a ren kans. it looks into the back to school selling season target had similar issues as it related to margins it's not just on the low end >> what does the xrt charlt look like >> it is a disaster. >> don't mix words >> consumers stocks have been poor all year. this weakness is spilling over going out of business names but now they are going after the big names that we are holding up well and then of course you have seen here today. it is 50% in groceries

to have a draw down like that is not usually contained to one day. >> okay. and we'll have much more at 5:00 on today's market selloff as well as the defense iive sector johnson & johnson, we'll talk about that and much more >> thank you coming up also on fast money despite that they say a 10% rally still in the cards that and more at the top of the hour >> up next, find out why an influential analyst is turning negative on apple. we'll talk about bare market territory and find out what is leading the declines there we'll be back there a coupleover minutes. -- of minutes the future of technology investing

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. and around the world, you have a partner in that pursuit.

pgim: the global investment management businesses of prudential.

the global investment management ♪ there's no place likargh!e ♪ i'm trying... ♪ yippiekiyay. ♪ mom. ♪ financials and energy have been hit pretty hard since early october. now you got to charts.

>> i know. >> we need to give you extra time >> i know i will be way worse at the drawing than mike. i'll give it my best shot. the reason i'm here mainly is because s and p financials went into bare market territories down 20% from their highs. we'll onlyianalyze. it is by looking at the worst performing sectors there is the s & p 500 energy is down some 20%. what about the banks during that time it is better than the financials f focuses and takes out the insurance dpacompanies and the likes. it is selling off in the last couple weeks of this period since october 3rd highs. what is the key raw material for all of these it is for oil prices is selloff since october 3rd high has been severe has the move in interest rates

for banks been of the same sort of size of move? it looks pretty sharp here looking at the ten year. we are talking about a move from 3.3 to about 2.9 at the moment it is no where near the moves we have seen in oil prices. banks during that pull backs has been significant the banks index on pace for the worst month since january 2016me2016 we remember how bad that was lowest level since november 16th so significant pull back yes. rates haven't been a great outlook. >> i am disappointed >> i got scared i would do it wrong. there we go. 50.94% >> how cheap are the banks >> relative to 25 year average

the pe average 12 times currently on nine times. if you compare it to the s & p 500 traditionally they traded at 75% of the average of the s&p. they are currently trading at 60%. are we about to head into a big recession where the yield curve? that's what the evaluations will continue >> if you believe it these are pretty cheap >> not bad >> thanks. >> i don't know. mike would probably give you a b minus. >> let's see >> look at shares of apple today. they fell more than 3% came out with a pretty bearish

call >> he was sites lowing demand. apple analysts and ranger firms have been cutting their targets on the iphone maker for morgan stanley. apple stock finishing in the red today and for the year bulls will try to counter that yes that could be weaker than expected because these new iphones carry higher price tags they think it could generate reasonable refr flew growth. they would point out the revenue return here. it lead a chinese court to issue a ban on older iphone models in that country

so an important market here. morgan stanley saying it initially appears limited in scope but leads to greater headline risk. back to you guys >> thank you very much for that. you highlighted the energy sector weak economic data sending that entire group into bare market territory. find out what other risks are on the horizon. one of the most popular products we'll break down the move next [leaf blower] you should be mad at leaf blowers. [beep] you should be mad your neighbor always wants to hang out.

and you should be mad your smart fridge is unnecessarily complicated. but you're not mad, because you have e*trade which isn't complicated. their tools make trading quicker and simpler. so you can take on the markets with confidence. don't get mad. get e*trade and start trading today. more range of motion. i'm fine. okay, well let's see you get up from the couch. i'm sorry, what? grandpa come. at cognizant, we're uniting doctors, insurers and patients on a collaborative care platform, making it easier to do what's best for everyone's health, every step of the way. you may need more physical therapy. ugh...am i covered for that? yep. look. grandpa catch! grandpa duck! woah! ha! there you go grandpa. keep doing that. get ready, because we're helping leading companies lead with digital.

get ready, because we're helping leading companies when you retire will you or will you just be you, without the constraints of a full time job? you can grow your retirement savings with pacific life and create the future that's most meaningful to you. which means you can retire, without retiring from life. having the flexibility to retire on your terms. that's the power of pacific. ask your financial professional about pacific life today.

shares of johnson & johnson plunging on reports that the company knew about asbestos in the powder a pretty damming report. >> that's right. the report focussed on two important revelations. number one they did some times contain small amounts of asbestos and the company was aware and failed to notify the public and regulators and that

investigation shaverd nearly $40 million after shares declined more than 10% today it was the worst one-day move in 16 years there have been several prior lawsuits accusing j and j of selling products with cancer-causing asbestos. a jury awarded a $4.7 billion in damages to 22 women who said it caused ovarian cancer. today investigation noted that the reporters obtained thousands of pages of confidential documents. they were first reported in that investigation. j and j called ate falit false d inflammatory and it was a conspiracy theory. they say the baby powder is safe ands a b and asbestos free.

>> reading the pushback from the company you just read a brief part of it, the fuller statement from the company points to the fact that they don't think they found anything new and that they have complied with regulators for decades on this particular topic already. >> exactly we had it on during power lunch today saying that their report was based on documents from j and j. they were based on memos that spelled out the risks that internal employees realized with regard to the asbestos with the products it's a matter of tests at the end of the day and what the science is really showing. j and j is saying among all of the tests they have done on this product that there was no trace of asbestos. the documents obtained by the report according to that report says a different story

>> okay. great stuff. thanks very much the entire energy sector is in bare market ter marketer territ. find out whether you should buy the dip. we are back in a couple of minutes. what do you look for when you trade? i want free access to research. yep, td ameritrade's got that. free access to every platform. yeah, that too.

i don't want any trade minimums. yeah, i totally agree, they don't have any of those. i want to know what i'm paying upfront. yes, absolutely. do you just say yes to everything? hm. well i say no to kale. mm. yeah, they say if you blanch it it's better, but that seems like a lot of work. no hidden fees. no platform fees. no trade minimums. and yes, it's all at one low price. td ameritrade. ♪ - (phone ringing)a phones offers - big button,ecialized phones... and volume-enhanced phones., get details on this state program. call or visit

and accessoriesphones for your mobile phone. like this device to increase volume on your cell phone. - ( phone ringing ) - get details on this state program call or visit welcome back the got transports outperforming major averages but sfil still falling 1.5% phil lebeau recaps the movers in the sector. >> hey, wilf, under pressure and they were under pressure today. has been the story the last month in part because people are

worried about the slowing economy. when you have a leading indicator lie transports people look at it over the last month, last couple of months and they say, homo, a little bit concerned especially when you look at what's going on with the rail stocks. these were among the worst performers today in to feeds into the questions about whether or not we start to see a slowdown in shipments. as for airline stocks we've been talking about in the last couple days you had delta investor day yesterday. even they they came out and said we're having record profitability between six and $7 a share, didn't meet the expectation of analysts bringing pressure the group finally look at jb hunt, the worst performing stock within the transports today guys, it's been a rough we can for the transports and i think people are starting to wonder at least with some sectors like airlines is this the case for the next couple months because the sentiment does not look like it's changing. >> one thing the bears and worriers on the the economy

point to, the weakness in the trrps. phil, thanks another sector entering bear market, energy, down 21% since the recent highs in may. >> let's bring in cnbc contributor john kildoff great to have you on again your farther for oil 67 to 70. >> in part it was in calking the opec and saudi arabia would react to the fall that we saw in oil prices and the iran sanctions. that one didn't work out there is no place to hide these days >> and so we have is had a big fall back more than expected what's your recalibrated expectation for maybe the end of next year where we o from here. >> what i'm watching carefully right now is really the -- the aftermath of the recent russia and opec agreement to cut output and not only that but what you have to watch out for here now as you get into january and february is a trick the saudis like i play what i call painting

the tape they are cutting back it appears on exports of crude oil to the united states which can be impactful on the weekly inventory reports we review every wednesday. to the extent they show draw downs from holding back sflies like they did in 2017 orp generate big bills like they did recently over the summer and fall which generated the recent price decline. they can play games a little bit with our statistics. i think they are in the mode or it looks like they are in the mode they are going to try to engineer a higher price. it's like not fighting the fed for new i have to not fight saudi arabia and yet the price of oil continuing lower, john today, the big theme was global economic we canness and it started with weaker retail sales and production numbers out of china. how much of the slide has been pure economic sensitivity, weaker global economy means less demand for oil. >> really all of it, sarah

i want to be clear what i'm look for the price outlook on the saudi plai let's mid-q 1 on we it hits. right now to the extent we can't hold $50 which looks unlikely. istic risk downtown to 48, 42. it's worse and worse about the trade war with china it seemed to me the chinese were raising the white flag by agreeing to by natural gas, soybeans i think they are economy is hit harder than they expected maybe than we all expected in terms of the impact from the trade war. if the oil market in particular loses china as a demand growth center they are the key. then we lose the bull market that you could even hope for >> strong dollar this week as well do you think that's a significant factor for today's move down or not really. >> no, very much, wilf you know were at a multimonth high, gone clearly back in into rally mode i will say from time to time this correlation with oil breaks down a bit when the move gets heavy in one

direction or the other for the dollar it totally starts to filt near oil prices. it's inverse correlation with the dollar rising if we get the dixie closing in on 100, maybe next week or two, oil will get pressured lower. >> it is marching high are as we speak, john thank you. >> thank you, guys have a great weekend. >> you too the highly anticipated federal reserve decision coming up next wednesday we'll get the key data neeeatch and all of xt wk when we come right back. is ta. big, bold promises like... it'll find life on mars! but here's the thing. you don't live on mars. (beep) you build wind turbines. supply car parts to thousands of cities. answer millions of customer calls a year. like this one: no, i didn't order this. it's terrifying. and that's why you work with watson. hello. it knows your industry, protects your insights, and works with tools you already use. that's why it's the best ai for the job.

and works with tools ignition sequence starts. 10... 9... guidance is internal. 6... 5... 4... 3... 2... 1... ♪

wat t. rowe price, hundreds of our experts go beyond the numbers to examine investment opportunities firsthand. like a biotech firm that engineers a patient's own cells to fight cancer. this is strategic investing. because your investments deserve the full story. t. rowe price. invest with confidence.

let's check in on key economic data and earnings out next we can. oracle and red rat hat report numbers on tuesday. tuesday building and housing starts permits as well as results from darden restaurants and fedex and mike con. >> the main event wednesday. the federal reserve. existing home sales numbers and general mills and winnebago earnings out that day. the philly fed and leading economic sbarters on thursday. nike boots you a lines and carnival roring that day friday november data for durable

goods, pce prices and personal income and spending. the economic data here in the u.s. painting a mixed picture. if you look at numbers inside the retail sales today very strong and you put that against the global back drop which continues to weaken and we look for signs in the u.s. of whether things are turning. >> i had to say i slightly agree with our guest from hsbc earlier clearly the data in china not what you want. the direction is growth for us they have the fire power and still 8% retails sales year over year yes the tap is on you would like to see better. the french data is soft it might be a one off. >> because of the protests. >> because of the protests brexit not going smoothly. also the ecb lowering the outlook. that's the one to watch for 2019 in q 1 next year. >> but i think the corporate results come out nike, a global company any commentary they have seen double digit growth in the

china business that's scrutinized heavily it's a driver for that company north america has just started to turn around any signs of consumer weakness, that they see in the report is interesting. also i cover it. you know. >> got to focus on it. all sectors lower today. we see where the buying opportunities are. >> "fast money" begins right now. "fast money" starts right now. live from the nasdaq market site overlook noerkz times square i'm melissa lee. carter wirth, team seymour, dan nathan and guy adami a major selloff wrapping up the we can tom lee says don't worry, a 10% rally into year end is still in the cards. he is here to explain. plus the transporting getting slammed down 2% today. but one trader making a contrarian call on a looser in the group. he explains. the dwoo dropping 500. the s&p and nasdaq down% the selling in year end pi