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good tuesday morning major averages taking another leg lower here dow's down 380 all indices in the red as these trade concerns continue to weigh on sentiment big tech names like microsoft, apple, amazon and facebook dragging down the nasdaq now on pace for the fifth negative session in six at this point, the biggest drop since march 22 and the s&p would close at the lowest since april 11th jeremy siegel is with us and mike santolli here to talk about where we are mike let me start with you. haven't seen a vix above 20 in a whole. awfully close. >> yeah, that's getting a lot of attention because it seems like it's indicate iing a less stabl

market we had slippage that's been so kind of favorable and really almost orchestrate d for a whil right now. you're also seeing some dynamics with vix versus the vix futures that gets traders nervous where the near term is trading at a preem numb that said, it seems like you have the makings for a little more of a genuine pullback you were due for something i think besides just the trade talk rich clarida today from the fed essentially ratifying the idea that low inflation is not an emergency right now and therefore don't look for some immediate help in terms of lower rates. all feeding into the mix by the way, nasdaq underperforming today tells you it's a risk off move not looking at hey, there's trade exposed companies. >> sofs pror, we've seen declines the last two days, but in general, the fact we've had markets near record highs or at record highs in recent week, have you u been surprised by how

buoyant equities have been >> this is obviously all about the trade. i mean, before i think the market built in a 90% chance that we were going to get trade resolution now i think closer to 70% chance or maybe even lower. and that is what's chopping the market downward. i think that's the whole story you know, if trurp says we're making progress again, you're going to see this market shoot up 5, 6, 700 points right away it's a question of what happens on friday for one and how long if it does, what's the retaliation of the chinese and how long that's going to be. that's totally dominating the market over the next i would say two or three weeks >> mike, what's market impact anymore of a trump tweet does it depend what it's about what sentiment is already? because it seems like yesterday we had the tweet, the market

didn't have a big reaction, but then it seemed to react to other things along those same lines after the market closeded you have to peel away the intention, the effectiveness, whether it speaks to a policy shift obviously yesterday, the dip buyers felt smart at the close and immediately there after. you effectively had mnuchin and lighthizer saying look, there's going to be tariffs on friday if we don't get a deal. so what seemed as if it could been from the president the try to speed up negotiations or make a stand was okay, we have to brace for something. i will continue to say it all happens in the context of a market trading at a high when people were starting to feel good about things. when you lost the support of being able to say the market was cheap and when you the able thety to say the fed is definitely our friend all that had to be in place for you to have this little 2% pullback from a high on trade news >> professor, what happens to the markets if the u.s. moves

forward and ups those tariffs to 25% on friday? >> we're going to have more downside and again, how far down it goes is how long and if both sides dig in, this market could go down 10 and 20%. however, needs to be said that the strong thing that donald trump has going for him in next year's election is the economy and the stock market he cannot afford that to falter. and i think he knows that. so you know, in a way, it's a question of is it you know, we take a look at what happened to government shutdown in january he pushed that i don't think it gained him anything at the end at all expect hoer ralower ratings for six-week period. this is b obviously much more serious, really affecting the stock market and the economy you know the news media's going to be all over it. if it lasts more than a couple of weeks so the question is is how long he wants to stand with this.

i think the end result is he has to, he has to get in like the government shutdown. to make things all right but in the meantime, a lot of volatility >> well, professor, given the that framework then, i mean how long could he play tough before the lag effect of tariffs and the konz gwen b shl cuts to earnings and all that. when would we get into the red zone given the timing of the election cycle >> well, i mean it is a question if he stands tough u and finally gets a deal, now don't forget, he can say oh, we have a tremendous deal and not different than what he could have gotten today. so you know, people to have to go into the weeds to find out how good a deal it actually is as far as that's concerned okay if he get as great deal, suppose we get a 10, 15% and then he get as deal and the market goes back up but you know what, people you

know, sometimes they just don't like that volatility why did you make us go through that a government shutdown for six weeks? did you get anything at the end at all so there's going to be a little resentment we're less than a year and a half away from the election. so we can't play this to a big decline and then announce a big victory. i think he's got to, he's got to maneuver pretty quickly. even if he does put on those tariffs. >> you're the second, you're the second really smart finance and markets guy to come on this morning that i have heard and say what the president should rationally do in this situation. but he seems to have marked his presidency by being surprising to put it charitably how much should inves terrotors in that? >> true, but here is a a president that more than any other president has touteded how well the stock market has done no question.

he knows he's been told, they're going to tell him. you go on this, market's going to crack so you know, got to make a deal and get it back up going to be really important to you. i think that that's, that is something that his advisers are going to tell him. i think he knows it because he's proud of the stock market. he might make a short-term sell off, but he's got to make long run deal that doesn't do any permanent damage to the economy and it can't be too long we're getting into election season dominating the news. >> professor, thanks for your time good seeing you. mike santolli is going to be close. we'll have you tethered to the desk meantime, could a new tax fix big tech an op-ed in "the new york times" argues that putting an ad revenue could change the behavior of companies like facebook and google. paul joins us from morning from

washington good morning to you. >> great b to be here. >> people are looking for practice kl solution to a seemingly intractable problem. >> everybody's unhappy with where we've ended up some are talking about using antitrust to solve it. others talking about regulation. i'm not optimistic they're going to get what they want if they go down those paths i wanted to make clear we've got other paths. we can use the tax system to create other incentives. >> all right, so these are, this is a tax on sales of targeted digital ads. are you being specific >> yep right. are you slicing the type of ads? >> yeah, the goal would be to tax these ads, which rely on this extensive collection of data about individuals we want to take away the incentive to have these firms be in the surveillance business >> but does it really do that? i think there could possibly be

no greater gift to amazon than a tax like this because that's what their competitors and small businesses are are doing to try to beat amazon they're trying to go to facebook, to google, do some retarget, draw traffic to their sites. amazon doesn't have to so they would be the main player in the retail ecosystem that's kind of tax free in this situation. wouldn't they be >> yeah, but listen. it's not my job to pick sides in one of these fights. the thing for an economist like me is to say we want to get back to the conditions where markets work can conditions include somebody pays for something if they don't like what they get in return, they can take their business elsewhere we don't have either of those elements in the current consumer interaction with these digital platforms. >> in terms of how you crafted this idea, have we seen similar ones that have been implemented and play out in other industries and if so, what has been the result >> you know, we've seen lots of

proposals about using a tax, not to collect revenue, but to try and change behavior. the carbon tax is a good example. this tax is similar in the sense you don't want it to collect revenue. you want to firm to evade the tax by shift toging to a better business model like a subscription model and in this case, because it's progressive, you want the firms that stick with the ebb business to break themselves up in this smaller independent firms because that minimizes their total tax bill >> does it matter to you how this gets spent? >> my goal is to keep pushing it so it doesn't collect revenue. >> to the degree it does though. >> you know, i think we got to stop worrying about this terrible outcome where we collect revenue. okay that's not the thing we should be worried about right now we should be worried about why people are talking about whether somebody in one of these firms is going to sensor speech or

some regulator is going to sensor speech. it's like how did we get to this outcome where there's not enough competition where the only option is to talk about sensorship >> paul, are you tax iing in th scenario, the real thing that you want to control for? a lot of people would argue it's not the targeted advertising that's the b b problem it's a collection of personal information in order to grow a network. arguably, there would bill stil be plenty of insenttive for all kinds of companies to collect personal information about users. perhaps they would just use it differently, but it would still be as vulnerable and potential ly as dangerous out in the ecosystem. >> listen. my general rule is solve the problems you've got. don't worry about the problems you might have the problem we've got is that firms are collecting tens, hundreds of billions of dollars of revenue based on extensive information about individuals and that's base ed on targeted d

v v advertising. >> have you had conversations with either lawmakers or the companies themselves about this idea. >> yeah, i think this is a you know the op-ed was a chance to launch a conversation. there have been a few quiet c conversations in advance and this will continue >> well, launch a conversation, you have, paul appreciate you sharing it with us today >> i tell my job is to be usefully provocative never sure if it's useful. >> paul, thanks. his op-ed in the times today >> rand when we return, building the world's most powerful super computer lisa su joins us on the other side of this break and later, what to expect ahead of uber's ipo on friday. big morning on "squawk alley" continues, next. ♪

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to search for something that you're not in. show me parks and rec. from netflix to prime video to live tv, xfinity lets you find your favorites with the emmy award-winning x1 voice remote. show me the best of amy poehler, again. this time around... now that's simple, easy, awesome. experience the entertainment you love on x1. access netflix, prime video, youtube and more, all with the sound of your voice. click, call or visit a store today. welcome back the department of energy teaming up with cray and chipmaker and in a $600 million deal to build the world's most powerful super computer it will debut in oak ridge in 2021 and will be the fastest in the world when completed thatat least that's the expecta. joining us now from oak ridge, tennessee is lisa su and peter

unga ungaro guys, good morning >> morning big announcement, lisa traditionally, intel, your rival, has been very strong in supercomputers as has ibm. what does this move mean for amd and your message to customers around high-end computing? >> well, jon, first of all, we are absolutely thrilled to be here today at oak ridge national labs with the department of energy and with our partner, cray, to announce the new supercomputer frontier it is extremely important to us. we're all about high performance computing and how we can bring the best technologies to the industry and this is the best of the best in terms of the highest performing supercomputer with a lot of new technologies in it. so it's extremely fornt amd and we're so honored to be here with our partner, cray. >> and peter, year, ibm

announced the summit supercomputer right there at oak ridge. to much fanfare. just a couple of months ago, you announced a supercomputer at intel with argan lots of supercomputer announcements. this competition with china. what's going on? >> yeah, it's an exciting time right now in the world of supercompeting bigger and bigger machines getting built all the time going forward. we're very excited to be partnered together for the frontier machine, which we believe will be the world's leading supercomputer when it's install ed in 2021 and really a ton of new technology that's going to hit the market. not just with this machine, but even broader into the broader computing marketplace. >> lisa, competition with china. they've got a supercomputer now that is made entirely with their domestic chips there's some questions about how much access they're going to have to u.s. based technology.

how much is the competition between the u.s. and china driving the narrative right now in supercompete iuting? >> well certainly when you thwek b about u.s. competitiveness and what we're trying to drive with the science and technology here in the u.s., there's no question it's very competitive. from our standpoint, we're just so excited to be part of the industry ecosystem here and the public and private partnership between the department of energy and the national lab system in oak ridge together with ourselves and cray we are building something really, really special and from that standpoint, we feel great about the technologies we're building custom components that together with the scientists across the national lab system we believe are going to solve some of the world's most important challenges over the next number of years >> peter, i want to back it up for a minute talking about excess scale

computing which for those of us who are not scientists, is basically measuring an quintillions per second. a number with 18 rows at zero es at the end when you talk b about new technologies, what are you talking about the capabilities and applications and what does this mean for the average american in terms of how that will affect their lives in the future >> yeah, that's a great question you know, every person on the planet did one calculation a second, it would take them over six years to do what frontier will do in just one second this is a huge machine it will be about the size of two basketball courts and weigh over a million pounds, about 35 schoolbuses to give you a perspective. and the technology that's going to underpin it is both the amd process eors and gpus, which wil be the engines of the machine, all tied together with the cray slingshot interconnect so a system interconnect to make

she these processors work together as well as our shasta stack. so really a machine that brings together the best of what is happen ing in the world of supercompeting with the technologies of the world of cloud competing and bringing that all together in one machine. >> lisa, this is a doe department of energy facility osof course, but these supercomputers get used broadly across government i'm curious b about cybersecurity and the implications there how supercomputing is being used shed some light if you can on how a computer with this kind of power advances that area >> no, it's a, extremely, extremely powerful set of computational capability when you look at although. >> howard:ed here at oak ridge, scientists from all arn the country are going to be able to use these supercomputers in frontier to advance research in all kinds of areas

including you know u, medical research, biological research. weather research you know, energy research. and of course, security is a very important piece of that so i think the key for us is to provide the components of the foundation not just in the hardware, but also in the programming capabilities and the abilities for a broad range of scientists to really solve some of the world's toughest challenges >> lisa, how much market share can you grow in high performance computing like this >> well, you know, as we've talked about, the data center is an incredibly important space. data is growing everywhere whether you talk about high performance computing, cloud competing or your tayou're talkg about intersurprise applications, we are absolutely committed to bringing these technologies throughout all those spaces and we love the data center and high performance computing. >> and lisa, quickly before we let you go, i just want to get

your thoughts on all of this u.s. china trade discussion and the developments that we've seen so far this week your expectations and what does that mean for the company? how are you planning based on what the outcomes could look like by friday >> well, certainly we're following the situation very closely. and you know, we have good faith that there will be a good outcome that comes across. and from our standpoint, you know, it's really all about staying focused on the markets and products and ensuring that you know, understanding what's going on and following the china situation is quite important to us as well >> all right thank you, lisa su and peter ungaro, amd and cray >> all right thanks very much >> thank you so much >> still to come, a bargain for facebook senator josh holly joins us with his take on the ftc's settlement

with facebook, but first, take a look at the worst performing stocks in the dow so far in today's session. goldman, home dee toe, boeing t dow in general, down almost 400 points more "squawk alley" after this break.

european markets set the close shortly. >> jon, the losses have been more pronounced in europe. large losses for germany, down 1.2% france and the u.k. currently trading at their lowest level in over a month and part of it is the trade uncertainty. the other part is the weaker growth picture out of europe factory orders in germany show ing a much lower than expected increase in march rising just 0.6% versus the 1.4% anticipated and alongside that report, the

european commissioned, lowering their 2019 gdp growth forecast for the region down to 1.2 saying risks from global trade tensions and brexit remain pronounced and a dramatic cut to germany's growth forecast, down just a half a percent from earlier this year if we pivot to earnings, a different picture cl ferrari, a 22% jump in net profits beating expectations and citing strong demand in china and even to bmw, its first quarter sales topping estimates in china and the company's ceo issued upbeat outlook for the second half of the year. stock though down 3% but it touches on a trend we've been discussing. the luxury companies have been able to outperform in china despite a slowing economy and trade concerns and at this point, analysts expect that trend to continue. we'll be getting earnings from caring, which iowns gucci and se

what they have say about the consume ner china. >> thank you very much session low is roughly down 421 on the dow jones industrials we almost came close to cracking the 26,000 level which we've not seen since march 29th. let's get to sue herera with a news update. >> good morning. here's what's happening this hour south korean officials are urging north korea to cease actions that heighten military tensions on the pe nininsula. this comes after the north held missile tests over the weekend, thought to be the first since 2017 a new poll from reuters fintds that three out of four americans believe kids need to be vaccinated against the measles even if their parents object more than 750 cases of the disease have been confirm nd the u.s. this year and now just in the last couple of minutes, georgia's governor brian kemp has signed the state's new abortion law

legislation that bans all abortions after a fetal heart beat that is detected. that can happen at five to six weeks into a pregnancy and eating nuts while pregnant can help aid the brain development of a child accord tog a study. it was done in spain with more than 2,000 mother and child pairs. the group of children whose mothers ate more nuts during the first trimester had the best results at measuring cognitive function, attention span and memory that's the news update this hour guys, back to you. morgan >> what a way to do baby brain interesting study. >> it is >> yeah. thank you. tech stocks under pressure this morning facebook among the big laggards. this is a pair of bipartisan senators criticize the proposed settlement with the ftc. richard blumenthal and josh holly from missouri calling a $5 million civil penalty a bargain

in a letter yesterday and joining us now from capitol hill is josh holly. senator, thanks for joining us today. >> you bet >> break this down for me. why would a potentially $5 million penalty be a bargain for facebook and what should we put in place for the company if not that >> you know, this is just a slap on the wrist you consider the current law says that $42,000 per penalty should be the going price. this would result in billions and billions and billions. let's not forget that facebook said that it did not collect private user ta ta in fact, it does it said it didn't share it with third parties. in fact, it has. so what need to happen is the ftc needs to get tough they need to name mark zuckerberg if he knew b about what was going on. they need to stop facebook from tracking consumers the way they do they need to stop the data collection that facebook has been using and they need to stop facebook from sharing this data with third parties or among different facebook platforms it's time to get serious here. >> smart senator, it's an issue

with facebook, especially when talking about this situation as playing out with the ftc what's not clear to me is whether those rules of the road should be under the per view or whether lawmakers like yourself should be drafted legislation to curtail these issues or focus on some of these issues affecting the industry overall >> we may need to do that. let's not forget however the ftc has enforcement authority and part of the reason we're in this spot and facebook is doing what it's been doing is the ftc wasn't serious in 2011 they didn't get tough with facebook then. they should have and now they need to get tough now. they need to impose the penalties that are serious they need the to enforce the raw to the maximum extent possible if they need additional enforcement authority, congress should look at that, but that's no excuse for not enforcing the law now and that's what the ftc needs to do. >> senator, are you calling for a facebook specific punishment here around what they're allowed to do with data or are you calling for just a new way that

we should be looking at companies, amazon, google, et cetera what they're allowed to do with consumer data. because there are all kinds of companies collecting massive amounts of data might be misusing it, we don't necessarily know >> let's start with facebook because they're the ones currently face iing the ftc investigation and the truth is, facebook is operating under a consent decree in which they agreed not to share user information with third parties without consent, but we know they did in fact share that information with third parties, without consumer's consent that's a big problem so that needs to be priority one actually enforce iing the conse decree, the law and punishing facebook accordingly look, if the ftc is just going to be a traffic cop that writes a little ticket every few year, facebook is just going to budget for that right now, facebook is trying to negotiation yait down the price of the fine in public for heavens sake this thiedes to stoneeds to sto. they need to enforce the law

they have on the books and we need to take a look at the whole business mod l here. >> senator, as a practical matter, how can any ceo, in this case, zuckerberg, be held personally liable for the actions of tens of thousands of employees and to what degree do you see that element as being a deal breaker here? >> well, it depends on what he knew the answer is if he personally knew what was going on, if he approved of these practices, this third party sharing of data for example, then he should be named by the ftc and the bigger point here is that the ftc needs to get tough no more slaps on wrist they've done that before enforce the laws hold facebook accountable and protect consumers. >> senator, before we let you go, i want to shift gears here and get your thoughts on whether the social media companies, whether you see them as biased in how they're policing their sites and who can participate on them, especially in light of the bannings of pundits andtent is

entities we saw last week. >> it's concerning they're discriminating against conservative and libertarian viewpoints in light of their section 230 immune thety, which is a major gift to industry. they're supposed to be neutral platforms that allow all viewpoints i'm concerned they're not doing that >> well, we look forward to having you back on to talk about this in greater detail in the future thanks for joining us today. >> thank you major averages still down more than 1% as you can see, dow down almost 400 points s&p continue to trade below 2900 haven't quite gotten to the 20 level on the vix but down over 2% don't go anywhere, we're back in a minute

dow 422 is essentially lows the session. 15 points separate us between us and a 25,000 handle on the dow jones industrials. keep your eye on breath, which is overwhelmingly negative not a single dow component is in the green. interesting volatile moment for uber to try to go public on friday another wrinkle in a story that has a bunch of them. we have a lot more on uber's

biggest investor >> has to be masa. he's been wheeling and deal ng this space, the ride sharing space for many years have ak loot a map represents the different ride sharing companies around the world. blue is uber, from north america to latin america, europe, australia, the middle east yellow is didi, china, ola, 99 in brazil. so guys, what do they have in common they have soft bank investment they are the biggest ride sharing players around the world. with it, he has collected a whole lot of influence as well one way of looking at it is that soft bank could be brokering peace by bringing competitors together so they could share resources and technology, but another way of looking at it, masa pushing his agenda and carving out regional winners with uber, he swooped in with

nearly $8 billion and got board seats and changes that completely altered the dynamics. it made softbank is biggest investor replacing travis. the investment implemented the one share, one vote structure see when they go public. after they got the an tall, the company retreated from southeast asia letting grab become the indisputable market leader, but the web is likely to get complicated in latin america uber has been b there for years. but didi has been make iing mov and it's unlikely that either player is willing to retreat from such a critical ride sharing market under travis, eurouber wanted gl domination when you lock at the current dynamic, it's really masa's game and it's regional players. >> then lyft earnings after the bell >> that will be really interesting. i know the company wants investors to look at certain t metrics like contribution margin investors are look iing at loss

and they're expegted to be significant. uber and lyft are not narrowing losses when everyone's talking about a path to profitability. >> thank you joining us here at post nine >> friday's going to be crazy. there's a look at the nasdaq below 8k on the 100, i think we have four components trading green four out of 100. so b obviously, pronounced selling in tech. s&p as we said earlier, 28.91 as these trade tensions continue to weigh on the market and really all we can do is weight until thursday and see how operations shape up >> yep quite a -- to look over for uber as we expect that to be pricing. >> for more on ipos, given that fact that in the midst of these trade headlines and moves in the markets, we have the busiest week for ipos. ipo expert brian happen m ton who cofounded sage works and an

article that investors are guessing valuations. also joining us today, scott griffith gentlemen, good morning. to you both. brian, i'll start with you and this op-ed on uber. on lyft and on this wave of tech ipos why are you so skeptical >> well here's the deal. the list into the ceo of uber, they don't even seem to care about profitability. things that are very important in a security instrument so my beef is this it's not that they're going public good models, sticky products, but the valuations are off the roof look at lyft i look at uber as largely lyft 2.0. they're losing tons of money they are growing it's a good company, but where are these valuations coming from basically mars they ought to get together with the guy from tesla

just crazy to me >> scott, do you agree >> i don't know if i agree or not. i agree that the valuation for these companies is very difficult to know. i think profitability looks like it's way in the disassistant future i step back and look at these as long-term investments even at this stage and really ask a different question i haven't heard a lot of conversation about which is how do these guys retain their key executives after these ipos. this year, we're seeing many companies come public for the first time in this post softbank era of these big unicorn, big valuation rounds they're staying private for a long time. much longer than we saw historically and so a lot of these employees are fully vested they're probably happy they're having a great time, but they're fully vested and they're starting to think about next big thing. as these things go public.

what are they doing to retain these great xwexecutives some companies have done better. facebook's done a great job. >> yeah. i'm wondering, uber's ipo, biggest domestic ipo since facebook how much of the ipo market for the rest of the year perhaps st riding on what happens friday at a little bit beyond and given that we've got this trade situation looming as well. is the market itself in the balance? >> yeah, two points. first of all, the ipo market tracks very much to the overall market so i think friday's important. but let's not overstate it go back to scott's point scott, i agree i think you're right tas good play, a unique one. but here's the deal. not just that these guys are losing money, scott. they don't even have fidelity around the idea of profits and they're not, i don't want to say, i actually do want to say, they're sort of arrogant about it like hey, we never have to be profitable so scott, i think you're right

you've got to look long run, but if these guys don't have any fidelity to basic things like earning profits 20 years from now, we got a problem. this stuff is not that complicated. i ran a tech company for 20 years. i sold out last year why are tech guys like me given a pass on basic fundamentals does not make sense to me. >> scott, your thoughts on that? >> yeah, i would, i actually agree. i think the thing again stepping back look iing more long-term, h concern i have about both of these business models and they're very different companies. there's been a lot of talk about that geographically the business mod e els themselves when you u take a look at this, the worry i have is that they depend on a lot of external factors, regulatory factors, the drivers themselves pricing that they can't always control. caps on the number of drivers in major cities like new york i worry that they end up looking like the airline industry before it's over and they're basically utilization management companies. the multiple that you apply to

that model would be less than 1 revenue. so my worry is that you end up in this utilization management game and they look like the airline industry and you have a real struggle for profitability up and down every year >> by the way, bingo scott on that totally bingo, but look where they are trading they're going to be at eight to ten times trailing sales so they're going out to market i understand that. the long-term looks good, but they're not going to trade at one or two times these guys are asking for eight to ten times trailing revenues that's the problem so if you're coming in now, you are buying high and it is really clear. >> so scott, is that what you're saying >> yep >> in your opinion are that much overvalued how do you value a company that i mean, i don't sense that uber's saying 20 years from now, we won't be profitable, but for the next three to five, certainly they feel like they have some running room so how do you value a company like that in a market like this

where heck, we got beyond meat around 80 bucks a share. >> i think in any of these marketplace businesses, you almost always look at gross margin at this stage and that's the challenge and people will give i think a lot of room to everything below growth margin under the sums there's a lot of infrastructure. i think they're going to get a flier on that for a while. the challenge is gross margin and the shocker for me and the perspectives is the take rate. it's in very low 20% 21% range. i'm concerned about the gross margin if that's where it stays. does it even get more pressure from other competition i take everything below gross margin still concerned right now. >> a key metric to watch as we get this uriber i bruber ipo on friday thanks for joining us today. >> great to be here.

>> and we continue to track this sell off trade tensions hitting stocks. the dow down more than 415 points north ameriasdaq and s&p also o than 1.5%. semis in the red nvidia, and amd alwal trading quite a bit lower. more "squawk alley" after this quk ea icbrk. your daily dashboard from fidelity. a visual snapshot of your investments. key portfolio events. all in one place. because when it's decision time... you need decision tech. only from fidelity.

oofrmt i'm scott wapner very special guest joins us today for an exclusive interview. we're talking to markets, obviously, given the fact the dow is down about 400 points or so he presented his big idea yesterday so we'll discuss that. we'll also talk with the idea contest winner i've got the traders with me today here as well we're talking everything going on with every tick of the market we'll do it at the top of the hour john, we'll see you in just a little bit looking forward to it. >> yep, yep, we will continue to watch that the dow taking another bit lower, lots of action at sohn as well speaking of, let's get to leslie picker with some breaking news on citadel >> have some performance numbers for april are trickling in and i'm told by a person familiar with the returns, flagship wellington fund was up 3.3% in april and 10% year to date

those numbers were driven by equities, credit, and quom is up through april, that is trailing the s&p, which is up 17.5% over that same time frame, but early reads on many of citadel's competitors in the so-called multistrategy hedge fund space indicate that citadel is actually outperforming more of its peers. they encompass large firms that invest in a bunch of different asset classes and strategy citadel manages more than $30 billion. we're working on confirming numbers for those other firms and we'll circle back when we do back over to you >> leslie, thank you very much down 423 now, briefly dipped below 26,000 on dow for the first time since march 22nd. you got the dow below the 50 day for the second time since january. boeing below its own 200-day, a lot to watch we'll keep that all in mind. meantime, the vicks got awfully

close to 20, not quite there we're back in a moment

stocks getting smoked, down 420 as we are trading below yesterday's intraday low, looking at the largest decline since march 22nd "squawk alley" is back in less than three minutes

all right, we're going to obviously monitor this midday selling, dow down 434, right around 26,000. we're finally in a 20 on the vicks and no components in the green. people were watching boeing on the heels of this downgrade out of barclay's today to see if it would fall below the 200-day,

which it's defended successfully a few times since that second crash. today, no dice it fell below. >> right, and tech, a lot of winners being sold today, sales force, nvidia, qualcomm, adobe all down 2.5% or more in this action and with all that said, we've been mentioning off and on some earnings we expect electronic arts coming tonight, disney tomorrow, and some more ahead of those, well, that one big ipo that we particularly expect on friday >> yeah, and of course lyft after the bell too now, mind you, we're only seven days into the month of may but the s&p is down about 2% so far to start the month it would be the first negative month since december you're seeing a similar scenario play out in terms of energy sector, tech sector, and the losses we've seen there so far to start the month of may, but really, in general, every dow component is lower, every s&p sector is lower today, it's just very broad based selling in

light of that weaker than expected number out of germany, the china trade headlines, and some of the fed speak we've got. >> finally, it's weird to think we might be talking about so-called corrections again, but russell 2 k and the transports about 8% off their recent highs so see if they fall 10% or more. >> let's get to the judge. carl, thanks so much we're covering the markets today live from midtown manhattan. we have an exclusive interview on "the halftime report" today with double line ceo jeffery gundlach, also have the traders here with me today, pete, jim, joe, and stephanie link all here to dissect everything happening in the markets and let's get right to it. dow, down 434 points really a carry on from yesterday even though we had a nice comeback later in the day. trade is the story is it nervous time or is it just noise? >> i think this is binary, i really do think this is a very, very big deal and the reaction today makes much more sense than e sterday.