and it's bothered me from day one. you have plenty of people just here how come it's always the united states that gets ripped? frankly, ukraine, we want to help them. and i do like the new president. do you know why i like him he was honest, because he said there was no pressure at all exerted on me, meaning him, by the president of the united states he said it by the way, that one sentence should stop this but he said there was no pressure exerted but you don't have to ask him. all you have to do is read the transcript, read the telephone call what i was having a problem with two things number one, ukraine is -- before him, tremendous corruption, t m tremendous more than just about any country in the world in fact, they're rated one of the most corrupt countries in the world. and i don't like giving money to a country that's that corrupt. number two -- >> you don't like giving money >> excuse me number two, i said the following.

i sawed this loud and clear to everybody. rob portman back immediate up. there's nobody more honorable than rob portman of ohio he called up, please let the money go i said rob i hate being the country that's always giving money when ukraine helps europe and the european countries far more than they help us they're like a wall between russia and europe. they're like a wall. they're a big, wide, beautiful wall and he said, you know what but it's important in fact, he came out and he said that this was my only reason. because i don't like being the sucker country we were the sucker country for years and years. we're not the sucker country anymore. but i gave the money because rob portman and others called me and asked. but i don't like to be the sucker and european countries are helped far more than we are. and those countries should pay more to help ukraine ask a question. >> thank you, sir. >> what did you want on biden?

>> biden and his son are stone-cold crooked you know it. his son walks out with millions of dollars the kid knows nothing. you know it and so do we go ahead ask a question. >> the question, sir, was what did you want president zel sensyky to do about vice president bideen and his son, hunter >> are you talking to me >> yeah. it was a follow-up of what i just asked you. >> are you ready we have the president of finland. ask him a question. >> i have one for him. i wanted to follow up on the one i asked you. >> did you hear me did you hear me? ask him a question. >> i will. >> i've given you a long answer. ask this gentleman a question. don't be rude. >> no, sir, i don't want to be rude i wanted you to have a chance to answer the question i asked you. >> i answered everything it's a whole hoax. do you know who is playing into the hoax people like you and the fake news media that we have in this country. i say, in many cases the corrupt media because you're corrupt much of the media in this country is not just fake it's corrupt and you have some very fine

people, too. great journalists, great reporters. but to a large extent, it's corrupt and it's fake. ask the president of finland a question, please. >> okay. i'll move on now mr. president, in your opening remarks, you said to president trump that you had been to some museums today and that you respected the u.s. democracy and encouraged him to continue it. are you concerned that that's not happening? my second question to you, sir, is the wto rule to you today in favor of the united states saying that the united states can now impose tariffs on european goods because of illegal subsidies against airbus. >> that was a big win for the united states. right? never had wins with other presidents, did you? but we're having a lot of wins at the -- >> this was a case that started 10 or 15 years ago. >> excuse me the wins are now because they think i don't like the wto and they want to make sure i'm happy. because all of those countries were ripping off the united states for many years. they know that i'm wise to it.

we've had a lot of wins. this was a $7 billion win. not bad. >> but i think the question is for me. >> the question, sir, is are you concerned that the president will impose those tariffs and the effect that may have on the country? >> yes, first of all, when i refer to your democracy i just want to tell i am impressed, the american people have gained during these decades, hundreds of years, building up a very impressive democracy so, keep it going on to wto, i have a lot of respect to multilateralism and to international institutions so wto has given now the decision which is, well, quite tough with europe.

but i'll just say that the wto has said its opinion, and that's that. >> and i just want to finish by saying it's an honor to be with the president of finland he has done a fantastic job. very popular, beloved over in finland. the wto has been much better to us since i've been president, because they understand they can't get away with what they've been getting away with for so many years, which is ripping off the united states. and please remember the president's last remarks, that we are a great democracy we are a great -- the united states is a great democracy. and i'm airing what i'm airing because we are, in fact, a democracy. and if the press were straight and honest and forthright, and tough, we would be a far greater nation we would be far greater when we

don't have the cnn's of the world who are corrupt people thank you very much, everybody welcome to "the closing bell." that was president trump finishing up a press conference with the president of finland, president niinisto a lot of the questions having to do with the telephone call with the president of ukraine the markets are down sharply at this moment, down 482 points on the dow alone. session was down 599 the high was down 135. we didn't really get any questions on that topic. although, of course, earlier we did hear from the president to say all this impeachment nonsense is driving the stock market down.

let's get to eamon javers. >> this was an astonishing press conference the president of finland turned to the president and said you have a great democracy keep it going. jeff mason of reuters asking whether he was sending any subtexts to the president about the state of the united states now. we saw the president of finland say simply no, he's impressed by the history of the united states you can bet there will be a lot read into that moment in that exchange there we also saw the president in an extremely aggressive mode here toward the press, something we've seen throughout this presidency but again today. this is a president who feels besieged on a lot of fronts, particularly by democrats on capitol hill, who have fired off subpoenas, who he says destroyed the lives of long-time

republicans. and, guys, if you think about it, we're only a week into the impeachment process. you can see his reaction is a very angry, fired-up reaction, who feels that his agenda is blocked by democrats on capitol hill. >> saying i'm airing what i am airing because we are a great democracy. a number of factors are being pointed to in this market sell-off today one of them is the wto ruling that will allow the u.s. slap tariffs on european nations. >> you saw both presidents talking about investment bilaterally in a number of business deals both presidents stressing economic ties here between these two countries at a time when this president is eager to generate some economic progress. the dow is off just under 500

points, analysts are saying it's more to do with the president's trade war than his impeachment the president tweeting out it's because of his impeachment proce process. >> eamon javers, thank you for wrapping that up for us. >> let's look at what's driving the action in the market today hangover of weak data, private payroll coming in, essentially in line,but august was revised sharply lower and treasury yields are sinking once again, dipping below 1.6% much more on this market sell-off and renewed concerns about this economy plus how you should be protecting your portfolio amid all of this uncertainty when we

hear more from mohammed el erian, david rosenberg, tony dwyer, stephen roach but first josh brown. >> we are now through the seventh straight quarter of zero progress on the dow jones. seven straight quarter we're into the eighth quarter now since the trade war started january of 2018. this is literally almost two full years with no progress in the dow jones. i remember a year ago, being on the air for cnbc you have the ten-year. everyone has to shorten up diversified portfolio. think of what that did for you the long bond this year, year to

date, is up 22% total return 22%. so if you threw your fixed income out last september because you thought oh, no, rates are going to scream higher and we own too many bonds. s&p 500 is not even up that much this year. you want to make sure you have enough humility to own the asset classes and respect the fact that on any given day, some will be down. stocks right now, symptom will be up. gold and bonds are up. tactically speaking it's not a great time ugly mis print, transports rolling over you don't want to see that russell 2000 rolling even harder you don't want to see that what's holding up the market has held up the market buy backs. we'll have a lot this year,

finish the year strong with buybacks other than that, there's no corporate cap-ex that peaked in the quarter of 2018 nothing exciting going on. cfos are pulling back. it's a tough time. diversified portfolio is looking pretty good. you're doing okay. >> we'll talk to you more on this market sell-off the next hour or so, covering all the angles today courtney reagan is tracking the nasdaq and deeper dive on the economic datea. bob to you first. >> it was rough right from the outset, 5-1. same now here. we saw transports week all day,

energy retail. lenar had fantastic numbers overall. that's a new high for lennar and pulte even though it's down late in the day even though general motors numbers were better that's found as well. housing strong, auto is not so strong difficult parts in the state of the consumer right now guys, back to you. >> bob, thank you very much. nasdaq on pace for its lowest close since august courtney reagan is watching the movers there hey, court. >> hi there, wilf. that's right if you look, technology has been fighting for "the biggest loser"

spot at loost for the nasdaq composite. we're still down 1.5%. if you take a look at that 2 hyundai moving average, though, for the nasdaq composite, at least we're relatively down, far from breeching that right now at 7789 or so for the nasdaq composite. semi conductors as a group, if you look at the etf, smh, that is weaker on the session only 10 or 11 names in the nasdaq 100 as bob was talking about that previously have been holding us up for the last several months lastly, of course, it makes sense that there's widely held tech names shaving the biggest

points off the nasdaq 100. you've got apple and nasdaq responsible for 20 points and 15 points to the downside on the nasdaq 100 back to you at the new york stock exchange. >> courtney, thank you selling isn't just contained to here in the u.s. we've seen big moves elsewhere. >> ftse 100 had its worst day, falling 3.2%, broader stocks europe fell 2.7% uk construction pmi came in at 43.3 versus an expectation of 45 it follows weak eurozone and chinese data earlier in the week also imposing tariffs on european countries

0.5%, europe down 3.5%, s&p 500 at the moment, morgan, 2.8% down for the week. >> and we're only into wednesday. let's bring in our economic reporter steve liesman what spark this had sell-off, second straight month of contraction. how dire was this reading? >> you know, you could kind of tell the manufacturing story by the spoke issues that were out there. you had a decline in the oil manufacturing sektder there. the trouble is, you know, this ism manufacturing number comes along yesterday and tells us only three of 18 sectors were growing. that means 15 were not growing

or were actually contracting look, morgan, we're not quite there yet when it comes to signaling a broader recession. when we're actually in recession, so not a foregone conclusion right now hard data is suggesting we're running 2% the concern is real, what's happening in manufacturing and what wilf just reported spread morse broadly to the u.s. economy. >> steve, last time we saw so-called industrial recession, last time manufacturing data contracting like this was in 2015, 2016. >> right. >> it didn't roll out to the broader economy. >> right. >> it spreads into the confidence figures if it spreads to the stock

market we'll be watching for that and that's a good graphic you have up there, folks if you just look at that, off to your left, to the left of the current number is that dip right there. a lot of that, morgan, accompanied a recession in the oil patch when oil prices fell that's a big part of what caused it to decline. a couple of months in a row below 50 to the left of that is when it really plunged -- doesn't give you a whole lot of warning they're going to be watching closely that services number what's happening in manufacturing spreads to services, the bulk of u.s. economic activity. then there will be a reason for real concern. >> hi, steve it's josh brown. ai'm curious what your thoughts are on the bull case, what's happening with these manufacturing measures is that

they're lapping the incredible juicing. and now we're facing a situation where the comps are way harder than they normally are because that have spike in activity. we'll get through that and it's possible that these numbers are not poised to take a new leg down as we get through those tougher comps. what's your thoughts on that >> i'm going to throw half of that question back to you in a second, josh to the extent we're seeing it in the earnings, that's where we would be lapping we're look at a monthly number, for example, when the number is above 50, manufacturing is expanding. that's been true more or less since 1948 when it's down at 43, almost all

the time the economy is contracting. nothing to do with what happened last year. it could be that we're measuring relevant confidence to a year ago. i'm not sure when the survey is being asked, being asked that way. i will say this. it's soft data, confidence data. you mentioned ceo survey data. that's not real dollars and cents being spent. are you seeing the lapping that you're talking about in the industrial earnings numbers? >> no. most doesn't have to do with the u.s. economy the world economy is in a substantially worse place if you remember the story in 2017, can you throw that out and arguably the effects of the trade war have been worse for europe than they have for us so far. developed asia, emergesing

markets and developed europe it's having an impact on how u.s. economies are thinking about the future i don't think anyone would deny that at this point the only question is if it's temporary. >> we'll have to leave it there. thank you very much, steve liesman at hq there. we have improved a little bit over the course of the last hour let's bring in jack caffery. are you buying anything today or are you feeling very bearish >> i'm not feeling very bearish. we have these moments of indigestion. in fact, if we think back, fourth quarter last year, it felt miserable up 20% on the year and i don't remember anyone in the fourth quarter saying we have the prospect of a 20% year we could have a year with the bond being a positive, dollars

being positive but ultimately it's been an environment where no one thought the economy would accelerate central banks are being more proactive, trying to be helpful and we've seen that finding its way through in terms of valuations. >> so we're not accelerating, though gdp growth, we're closer to 2.5? >> much closer to trend growth that winds up being ultimately healthier and allows central banks to be helpful, the fact that we don't have inflation effectively comes back to this idea that central banks can be friendly rather than contract ing and causing problems. >> on a day like today, we have major indices down. >> as an investor you always want to be thinking about how

can i upgrade my portfolio diversification is how one stays wealthy in the long run. twersification helps to keep you there and ultimately quality matters. one thinks about today we certainly have a lot more policy uncertainty today than we had a year ago, whether it's trade, brexit, german policy from that, one comes back to what are good businesses and what are good misses that pay cash and ultimately to give you good cushion and quality. >> jack caffery, good to see you. >> thank you. >> 35 minutes left of trade. let's send it over to mike sant santoli for today's dashboard. mike >> nowhere fast is where we'll start. key sectors that give a read on the metabolism of this market.

passive/aggressive stock versus bond relationship alone together is the corporate appetite so nowhere fast. dow jones transports this is a four-year chart. want to get a couple of significa significant. we bottomed there in the high 8000s. we have some room. let alone last december, much more dramatic drop there home builders etf relative to the consumer discretionary etf this is essentially the best looking part of consumer right now. over the past year, out

performance of the home builders has been 18% the part of consumer discretion ry essentially playing on demographics if i showed you a ten-year version of this chart, though, it's only recouped half of the relative losses. that's why housing is not in step with the rest our economic cycle right now, guys. >> to mike's point we've seen way worse out of the transports. very high data, cyclical companies and a lot of companies aren't really high credit quality. when people get nervous they sell them doubly so than they would but you pay attention to these things in the context of other things that you see.

i mentioned the russell 2000 in the same breath. i think you look at these things in concert with each other and it's not that they are right when they sell off or right when they rally, they're a signal of what people are starting to feel. >> 34 minutes left of the trade and down 430 point ons the dow mohammed el erian joins us on the phone. thank you for joining us since you and i were talking monday morning before the market open has the data in the period between then and now justified such a big trade down? >> thanks, wilfred remember you had me on and said what would you do here i said i would take some risk

off. that was due to two reasons. one is that the global economy was slowing much faster than some people anticipated and secondly, the hope for a policy hand-off was very high i felt both these things were exaggerated by markets so there's a better understanding of how quickly the global economy is expanding. there's too much hope on the policy front yes, in terms of we are better reflecting the economic fundamental fundamentals, no in terms of we haven't yet reflected the quality. >> there seems to be an increasing by the day, by the hour focus on the jobs market, adp number we got this morning, expectation numbers around the monthly report, government report on friday if we do see a slowing, which it

seems like we are, how big of a deal is that, especially this point in the cycle >> so it would be a big deal i'm not quite sure we're going to see a massive slowing why would it be a big deal manufacturing is relatively small for the u.s. economy this is a global phenomenon. so far, the domestic side of the u.s. economy has been doing very well if you see a significant slowing in wage growth and/or job creation, it will tell you that the domestic side is getting contaminate contaminated by the slowdown these two numbers now take on a lot more importance than they did just a week ago. >> if we don't see the hand-off that you were discussing in your first answer, do we then have a

recession in 2020? not necessarily because again domestic side is doing quite well the problem with the hand-off, wilfred, as you just heard, the question is not whether central banks will be friendly they are going to be friendly. the question is whether they can stay as effect iive or if the e is actually now harmful to the economy. so keep an eye on that i don't think the monetary authorities can save us on the recession. i'm pretty optimistic about this, is the nontradeable sector of the u.s. economy. that's still in good shape. >> including europe and japan,

is there more ammunition for the center bank to do more cutting and have impact here and other parts of the world >> they definitely have more room i would encourage you to look at what's happening that's cut back quite a bit recently which tells you that the bond market is not just about the global economy but having a more realistic view about the u.s. economy smur, the fed has room to cut. do you want to use that now? i suspect they will cut because the risk of not doing so is high but we shouldn't expect that to economically change the outlook. >> a trade deal deif you can't and put the economy on to a

positive trajectory? >> if it's a durable trade deal, yes, that would help it certainly would help. but it has to be durable, wilfred. what wouldn't help is something that is seen as short term and just a cease fire. >> mohamed, thanks for join iin us. >> thanks for having me. >> 29 minutes left to trade here things driving the action. weak manufactureing data stoking anxiety about a slowdown in the u.s. private payrolls coming in essentially in line. yields on the ten-year treasury dipping back below 1.6%, hurting the market let's dig deeper into the sell-off courtney reagan, but court let's start with you. >> thanks, wilfred we're off session lows at the

nasdaq as well still negative on the session, down about 1.5%. transports are lower broadly we've been talking about that throughout the show. i point to american airlines, united airlines being lower and actually the biggest laggards of the nasdaq 100 here today. you have names like intuitive, surgical and walgreens right behind there, trying to jockey for that position of the biggest loser in the nasdaq 100. we talk about the strength of the consumer, holding up the broader economy. seeing some cracks, at least, in the trading aspect of consumer names here at the nasdaq as well you have stitch fix, considerably lower they did have some earnings disappointment yesterday and guidance disappointment. you're seeing name sell-off like starbucks and ulta back to you. >> thank you very much, courtney let's get to frank holland, diving into the transports

specifically. >> union pacific hard hit as the sector falls for a second day. kansas city southern also down 2% rail volume was down 7% last week, according to a report that was released earlier today year to date traffic down 4%, this news adding to the pressure from the weak manufacturing data yesterday. dow transports down 2% 19 of 20 stocks in the red showing the impact on the broader sector trucks and logistics, showing the biggest decline partly due to barkley's mid-sized truckers like land star seeing steeper declines in part because they're seen as more vulnerable to an increasingly volatile rate environment. back to you. >> thank you, frank holland. let's send it over to mike santoli for a second dashboard mike >> calling this passive aggressive the market over the past couple of months has been in both modes for a while. the chart of the s&p 500 to put

the current moves in a bit of context here we slouched back pretty much into the range that had trap this had market for all of august another 2% or 3% below current levels before we get to the bottom of that august range. really, it seems as if it's not quite a successful rebound attempt to the highs, has rolled over we have not yet gone back to where we were really five or six weeks ago. that's one way to put it, in context. stock/bond relationship has been key. only when stock prices have been going up along with bond yields. this is a relationship s&p 500, blue the total bond market etf this line is going up, stocks are outperforming bonds. when it's going down, obviously, the other way around here, it shows you it's not sort of all the way back there again in august. right back here, you had bond yields at record lows, bond prices at record highs just about and stocks were suffering. you give back some not entirely all of it

what's interesting today, treasury yields in the long end especially are not moving dramatically lower it seems the bond market not having as much of a panic move as the stock market did, at least at its lows earlier today. >> you saw us below those august lows 2% to 3% where we are now, would you be concerned it would be free fall from there? >> i don't know that free fall would be the term that i would use. i would be concerned because other people would be concerned. the stock market is very much a mood ring. and, frankly, these levels may be meaningless in terms of the fundamentals in valuations of the underlying businesses that people are investing in. from a training perspective, understanding how much this market is algorithmically driven that question would be answered based on who you are, how you invest if you're investing for the long term and were down 6% from the high versus 5%, it

doesn't change anything for you. >> on a day where every s&p sector is in the red one of the worst performing is technology one of the biggest losers down just under 2%. web bush security managing director of research, thanks for being here what do you make of the sell-off in tech, especially given the fact that when we look at the internet names they've been the biggest highest flyers all year? >> it's a white nknuckle period in terms of numbers cut, worried about china. we're seeing investors, the high multiple names are getting crushed. 30, 40%. you're seeing risks get taken off. ultimately, as many head for the elevators, i think right now the question is, do you retreat or double down? our opinion, we continue to be steadfast in the bullish i think the winners are the ones you own in terms of the cloud and fang names we're not -- we continue to sort of be pounding the table on our winners here.

>> whose valuations are still susceptible to these pullbacks >> some of the high multiple software, names caught 15, 20 times. you've seen it with crowd strike, z-scale, okta, some of these high flyers. fundamentally, from an ipo perspective, what we've seen the there, combined with uber, lyft, software and semi, there's nowhere to hide. >> is the ipo closed >> for the right business models, with profitability and with growth, i think it's not. right now you're seeing that door shut, which this is a major shot across the bow from wall street to the valley right now it's the question. these private companies that had ipo paths, they're going to have to seriously think about m & a or other rounds on the private side in terms of what we've seen. >> isn't that supportive of

valuations for companies that are public and fundamentally sound? air bnb will probably happen they'll do a direct. now you don't have this meteor coming into the market and displacing other stocks. is there some benefit to that? >> you raise a great point fundamentally, with with ipo's, it's sucking the oxygen out of these names. >> right. >> from a supply perspective, some of these names continue to be there they're going to benefit i view this as one -- you sort of hand hold through this period 3q, specifically cloud, fang, amazon, apple, microsoft especially some of the cloud names, we continue to like some of those names i think ultimately these are valuations that are going to go higher we're not panicking because of the fundamentals. >> if you had to choose one name, given the fact that it's a sea of red that you would be adding your position to, what would it be? >> in our opinion it's apple

just because taiwan, we've seen an uplift in terms of 4 million units coming out of taiwan in terms of what iphone 11 looks at i view that as a 20, $25 overhang in terms of china on large cap that continues to mean we pound the table on, along with a handful of others. >> how important is the call to coming up for netflix? >> it's massive. right now, new york city cab drivers are negative on netflix. this is a major prove me xwrt for hastings and netflix, especially with iger, as well as apple and cook coming. fundamentally it comes down to the international subs can they show growth there if not all of a sudden i think you'll see valuations continue to come down. >> if they miss on subs and even saw another u.s. decline in subs, how far do they fall, another 30% or so, or is it just a tweak, given the fall?

>> i think that would be a watch out below situation in terms that that stock could be down another 20, 25%. that's where many could view that the clock strikes 12 in terms of valuation, continuing the stretch, especially this pricing war, where apple is priced there, where disney has priced theirs. you look at netflix as a darling. this is a prove me quarter. >> there's no natural investor in that scenario if netflix disappoints on international, who comes in? the growth investor doesn't come in because the dproeth isn't there. the value investor doesn't come in because it's not cheap enough what is it, 60 times >> that's the problem. >> who is in that air pocket there's no one there. >> going into 3q there's worries in terms of valuation earnings, netflix included to your point here is the growth here is the value. in between, there's no one that's why you're seeing these stocks miss earnings, seeing

them down. >> dan ives, thank you. >> thank you. >> energy is the worst performing sector in today's sell-off let's bring in the president of blue line futures. thank you for joining us looking at the oil price itself, outweighing geopolitical concerns >> bearish report today. in two-month lows. this isn't just happening right now. you mention the geopolitics. everyone is yelling, but the geopolitics. opec said it today, saudi arabia proved to be a reliable source of oil they were able to meet the demands of their clients and got back online pretty quick during the seasonally bearsh time of year, that became a bearish tailwind, they were able to fight through those geopolitics. oil looks heavy. i think there's lower to go. >> in terms of if you were going to be investing in the energy sector right now, do you go more

defensive and take on something like an exxon, chevron that's more diversified >> i wouldn't touch those right now. i think they're bearish. i've been bearish of those names right now. i'm looking lower in the chart there's a trend line down to 47 back to 2016 looking at exxon more particularly, yeah, there's some earnings forecast being downgraded right now this chart looks heavy, trying to push down through 67 bucks. we could see exxon go town do to $67. exxon has sold off look at chevron right now. it's more the top end of its range. it failed at 125 50-day moving average. this cross could bring a tailwind lower i'm looking at 2015 from chevron, comes in about 108. if you get the tailwind lower, and we break through 108, we could see this go down to 95 in

chevron. guess what, if we go lower, there will be some value to buy. i like it to go lower. then you'll be able to see it for value long term. >> look out below with food prices >> howard marks likes to say there's nothing intelligent to be said about the future of oil prices, and i think i agree with that so, i have no edge on where oil prices are going speaking strictly about the stocks, this is a tough one for long-term investors. valuations are good, but the prospect for earnings does not look good. and then if you're a very long-term investor, there's an open question about whether or not oil and gas are the fuel of your children's generation you don't get bailed out on the long term-ism either there's a reason warren buffett is not scooping these energy, oil and frac'ing giants up and that might have something to do with it. i don't love them short term or long term.

that's where i am. >> bill, thank you for joining us meantime, time for last chance trade with 16 minutes left to trade. >> i want to talk about edward life sciences, the first time being mentioned on the network it's a $40 billion plus market cap. big earnings beat, gap up 10%, spept a quarter since reporting that earnings number, consolidating. this is exactly what you want to see after a gap. you don't want the stock to extend and then fall just tracking that level but giving nothing back. that's the key here. health care sector is loaded with secular growth stories. trade doesn't matter to these companies. interest rates don't matter, fed drama, impeachment has nothing to do with anything. these are the types of stocks -- by the way it's green on the day-to-day these are the types of stocks that i think could do well between now and the end of the year if you're an investor looking at the tape today you're pretty happy about it. >> when you have conviction

names like this on a day like today, do you ever trim the exposure to stocks like that >> if i were a trader. i'm talking about this as an opportunity because it has a pristine chart, ten years in an uptrend, extraordinary growth story and under followed people don't talk about it it's not cheap on valuation basis. if you're a value investor you won't find this in one of your screens. but this say great trend, green stock. it'sworthy doing the research and finding out why is this stock being accumulated when eight out of ten stocks in the s&p are being sold off that's what i like to look ought on days like today. >> the dow is down 453 points. we are now in the closing bell market zone. commercial-free coverage of all the action going into the close. we'll tell you everything an investor needs to know in these final minutes and break down the final action after the bell rings, too. >> big movers in the dow s&p and nasdaq constantly

changing and cnbc mike santoli is there to break down crucial moments of your trading day. and today, wealth management ceo josh brown still with us right here at post nine. >> i'm not going anywhere. >> let's start off with seema mody and how they're playing off in the two-day sell-off. >> dow has lost 860 points in the first two days of october. that's roughly 3%. fearing the worst, industrials, these companies that specialize in construction, big machinery, turbines, a sector that's been hurt by bruising but slowdown in u.s. manufacturing poses a new challenge for industrials with softer demand from machinery goods and backlogs on the rise analysts say companies like deere and caterpillar may be

forced to sell stocks. now back to you. >> seema, thank you. >> josh, there's another industry group within industrials that's been selling off the last couple of days as well, despite the fact they don't have the same sort of exposure to the trade war or global growth store. that's defense names any thoughts on that >> this has been one of the best sectors to be in over the last five years, done extraordinarily well, relative to the overall market and relative to the broader sector, industrial sector i think when you get a moment like this, the dow is down almost 1,000 points in two days. sometimes you don't sell what you want to sell you sell what you can. a lot of these, big liquid stocks people have huge gains in them they don't feel silly selling them they're not down 20% on the year like the other industrials you put yourself in the mind of a portfolio manager, you have to make some sales. you sell what you can. and sometimes you say to

yourself, that doesn't make any sense what about earnings growth, what about good ceo, that ain't the workday to day. you do what you have to do to get to the 4:00 bell business wise you're doing great. >> auto stocks underperforming the market after data was released today let's bring in phil lee bow fber this conversation. >> it was a mixed report had you better than expected results from ford and fiat chrysler these stocks all sold off partially in sympathy to the market and this is as good as it gets in terms of auto sales in north america. the expectation is that down the road we see them slow down the one stock we want to focus on here, general motors. the reason we're looking at gm, down at least another 3.5, 4% today, down 10% since the strike

started december 16th, those talks continue guys, as long as those talks continue but we don't see any sense that they'll be resolved, don't be surprised if we don't see more pressure on that stock. >> expectations around tesla as well, what are those. >> yep we -- well, it all comes down to the q3 delivery numbers, which we are expecting, whether it's today, in the next 24 hours. we will be getting them soon when they come out, the number to focus on, 99,000. that is the expectation in terms of deliveries in the third quarter. it would be a record slightly higher in the second quarter. if it's dramatically different than that, then we could see pressure on the stock. >> very quickly, phil, i want to pivot you to airline stocks getting crushed, that delta warned about will this be a broader issue for the airlines

>> that's why you saw all of them moving lower. they're down 3% to 5% today. couple of things about delta first of all, once the wto decision came out, allowing the u.s. to potentially put tariffs on goods from europe including, potentially, airbus fuselages, delta buys u.s. airplanes, there would be a tax on them they're urging the white house not to do that you also saw that there is still strong demand out there, despite these concerns. >> phil lebeau, thank you. >> names that are much more consumer focused. >> it's not really speaking in code paint by numbers possibility of recession, that

they'll sell off consumer cyclicals. autos have the shadow over them for a long time. i think that you can pretty much look across the board and say if you had a prerecession trade script, this market is falling doesn't mean it's right. it looks that's the way it's moving. >> wto rule iing i would say tr is generally improving i don't know that it's going to spoof folks. in autos, without a doubt. i don't think it's remotely priced in. >> tech stocks a major drag on the market today josh lipton is following that for us. >> surged more than 25%.

today tech is slipping as investors worry about the economy. check out apple. monster 40% move this year today it's following despite notes, microsoft also in the red. even satya nad ella surprised us with that new folding smart phone and check out the smh negative today keep in mind investors have piled into the chips smh up more than 30% this year guys, back to you. >> josh lipton, thank you. josh brown, what isr semis telling us is it a similar story to some of the early economic indicators? >> i said before that i feel like transports, in many ways that semis, in many ways, are new transports for over 100 years, it was heavily predicated on the movement of physical goods around the economy of course, that makes intuitive sens

sense. >> the primary market, primary end use r. so much as they echo and it's n not. >> relative outperformer over the course of the three trading days. >> yeah. it had another trip up almost to the tie hoois and the other day. >> just under 7:00, 6:30 left of

trade. we briefly went down 5 h00 poin. if you're just joining us, we bring you uninterrupted commercial free coverage into and after the closing bell on the right side of your screen in the biggest which weres and losers of the day. bottom of the screen, you can see a preview of the next few stories we're going to cover as we approach and go through the close. >> in terms of the dow right now, which is down 489 points, one component in the green, johnson & johnson, bucking the trend today and meg tirrell has the details on why meg? >> j & j is up after they reach a settlement in the first opioid case, agreeing to $20.4 million for two ohio counties, making it themaker to settle to avoid going to trial. there are still thousands of cases consolidated in

litigation they see these settlements to a first step in a broader resolution and extrapolate that the j & j settlement amount could be around $4 billion, much less than the $10 to $15 billion estimated by wells fargo back to you. >> meg tirrell, thank you. josh brown, is this a situation where bad news isn't as bad as it could have been and thuts stock is rallying? >> yeah. you know, when you have some sort of tort action or potential for action, or various attorneys general swarming around something like this, then you compress it to this and get some sense, okay, this is going to end. we're going to get through this. that's something you can read into this. >> let's have a look at the volatility index mike, you've been digging into this. >> yes the fever kind of spiked a little bit in the middle of the day. we got up to 21 on the vics.

one-year chart puts it in context. this sell-off has not had as much intensity in august, august 5th, we spiked up to 25 it's been a relatively contained little pullback the last couple of days, at least so far obviously that tremendous run-up in the 30s was at the climax it kind of tells you that we're on alert but not yet in panic mode for the vix it's been an 80% tlieni ideclin volume tomorrow you'll hear people saying we're pretty oversold even though we're only 5% of the highs in the uptrend. >> what is your take on the vix, josh >> it doesn't signal anything about the future it tells you what's happening now. the dow down 400 plus i can pretty much guess where the vix is going to be. >> at the level it's at now, is that still cheap for protection

relative to your fear level for yourself at the moment >> if you were using options as your preferred method of protection and say this is going to get worse, we're only down 5% from the high, then yeah that would be a place i think you could obtain cheap enough insurance. then the question is, what are you trying to insure if you're over invested and feel that you have too much exposure to the market you have another option you don't have to henl it. you can take it off. >> the dow is down over 5 unpoints with three minutes left to the close let's send it over to rick santelli for a check on bonds, about a big effect on equities this week, rick. >> cross fertilization after yesterday's number we look forward to tomorrow's service sector ism we covered 20 basis points, hovering a basis point above

that if you go to the ten-year, 175 to 158, but definitely the 30-year bond was briefly unchanged, look at tens minus twos, two-month high basically now we're going to go to cord courtney at the nasdaq not all nasdaq stocks are created equal. >> we're going to focus on the consumer srt, retail etf, that has been selling off to a much broader degree than the regular market, down 2.5%. that's concerning. what's held up this market best buy ceo said yeah, i saw it was hitting a nine-month low but we haven't seen the weakness yet. shares of best buy are lower today and department stores. that's a format that's largely in uestion, going forward. are department stores going to be aplace where consumers will want to go

these two names here, these premium accessory and apparel makers tend to see these bigger sell-offs on market sell-off days now to bob pisani at the new york stock exchange. >> thank you very much, courtney s&p 500. it's been a pretty wild ride today. we closed at 2940, went as low as 2875 before 1:00 eastern time we have bounced off of that. we are sitting at 2887, but not far from the lows for the day. there was talk about the health of the consumer, what's going on one big ticket item did pretty well today, lennar announced excellent earning results overall. talked about positive wage growth, lower supply overall, new high for lennar. pulte also hit a new high. not so much a new rally in the energy sector, we continue to

see many stocks hit new lows, marathon oil, a lot of these exploration and production companies hitting new lows and there's the closing bell dow jones industrial is down 491 points s&p 500 down 52 points >> if you're just joining us, welcome to "the closing bell" i'm wilfred frost. >> and i'm morgan brennan. the dow finishing down 491 points, 1.8% lower today believe it or not, that's actually off the lows of the session. s&p also finishing down 1.7%, down 52 points nasdaq as well much lower, 1.8%

and really across the board, a lot of selling with every sector in the s&p in the red. >> we were down 500 points for moments in that last ten minutes of trade but just closed above the level. still a lot of selling as morgan pointed out. we have breaking news on trade kayla tausche has the details. >> after getting a green light, the u.s. government is set to release a new list of tariffs on european union products as soon as tonight according to senior officials from the office of the u.s. trade representative. this list is set to include aircraft as well as agricultural and industrial products. aircraft will be hit by a 10% tariff the other product lbs hit by a 25% tariffs. and we're awaiting details exactly which products will be included these tariffs will appear in the federal register within the next few days and we're expecting that these tariffs will take effect october 18th according to

these officials. just before the tariffs are set to take effect, the u.s. and eu are sit to have a meeting over trade. that's expected to happen october 14th unclear what, if anything, that meeting could yield. important to note it is a few days before that october 18th effective tariff date. we're on watch for that tariff list to see what it includes when it comes out, wilf. certainly the u.s. is wasting no time in announcing its actions after this ruling came out and senior officials say if brussels tries to retaliate in response that it believes it has no basis legally to do that. >> kayla, does the administration think of the eu as a totally separate issue to china, or does this indicate that broadly the administration is upping the ante on trade in general? >> i think it does separate the european issues from the chinese issues they're on somewhat parallel tracks here, wilf.

boeing and tax benefits from washington state that's expected early next year. there is early european auto tariff there are a few mile markers for the u.s. and eu on trade negotiation lines have been open but so far little progress according to officials has been made. >> mike santoli, how does this factor into what we've seen in the market in general? >> a little defensive crouch i wouldn't say particularly about this issue sort of priced out, i think, any kind of on trade i think it's a matter of looking through this list on tariffs in terms of products that it applies to and then figuring out pricing implications from there. >> josh, what's your take on this as to whether or not this

will spook the market further on trade? >> no reason for this. >> on a parallel track the president is screaming that interest rates are too low and that's what's holding back the economy. korpgs respect holding back operations because 1.85% is too much of an interest rate to borrow at and invest that's not the reason. this is the reason now we're going to expand it further? it's absolute madness. i completely don't under -- if you had some success doing this with china, then you said let's do it now with europe. you have no success doing this with china. >> i also would point out, the eurozone economy is very weak already, particularly some of these sectors that are going to be in the eye of the storm and whether they've been more exposed to the china trade, they'll certainly be very exposed to this. it's definitely a region that

might not directly influence u.s. growth but directly influence sentiment and yields and all of that, mike, has significant ability to if he can't the markets here. >> sure and trying to push the markets in a direction they're already kind of leaning, which is into this growth scare. if, in fact, that's how the markets take it it will just reinforce it nor now. >> bny melon, i want to get your take on these retaliatory tariffs on some goods being imported from europe and what it would mean for a market moving forward. >> this is just another incremental negative for the market for most investors, they were not focused on the european tariffs at all to the extent we've not gotten anywhere with china, it does feel like a piling on and an increasing of the negative sentiment, making it very hard for the market to move forward here. >> alicia, today with this kind of setting, down 494 points on

the dow, was there anything that you were advising your clients to buy, any sector that looks cheaper and sees this selling as an opportunity >> eventually, there could be an opportunity. what we see is a really choppy market moving forward. it's one of those strange markets where it's very dependent on macrodata we have the ism services number coming out tomorrow, bls number on friday and these numbers are really going to tell us whether the manufacturing slowdown here in the u.s. has pevted over to keeping the economy afloat, the consumer and services section, and we actually need the data to see it when you have a market that's so dependent on signals like that, it's very hard to invest we see chopiness, volatility and wouldn't be surprised to see it move and the tactical level testing. >> josh, it seems to be pricing in a greater chance of a rate

cut at the end of this month do you think that happens? >> so, i think it does only because of market direction. and that can change quickly. i really do believe that all the commentary, all the data that goes into the fed decision, at the end of the day, they look at sentiment and sentiment, the best possible measure of sentiment is the s&p 500 i do thiching the 2 hnk the 200 day average factors in a lot of bloomberg terminals in the federal reserve these days, much more than there used to be. that sounds bad but it makes sense. we reorganized the whole economy around the wealth effect it comes around three places did you get a raise? is your house up in value and how is your 401(k) doing it's not ludicrous to say that the fed will look at what's going on in stock marks. i think we're moving closer toward that moment.

>> also in a data-dependent mode out of the last meeting, the fed was watching for the pace of activity you get an ism below 48, whether you think that number is imagine being or not, it's enough to say fine we want to try to get ahead of this, pending friday's jobs numbers. >> with the sentiment worsening and momentum moving against you, is that enough to move the market >> a fed rate cut? >> yeah. >> incrementally, it could be. we're not in disaster mode right now. >> i don't think it matters that much that 25 basis points doesn't matter. >> couple of weeks ago we might have had that cut with the data looking strong. >> that's coming into october. >> imagine getting the rate cut and the market sells off anyway. that would be the only evidence you need that -- >> quite likely at this stage, is it not? >> july that happened. >> the global trade -- that will tell you that the market is now fixated on whether or not the earnings estimates going out to 20 are safe because of not where rights are but the international

trade situation. >> alicia, i want to get to you on this debate who do you agree with and why? >> the fed cuts again at 25 basis points but, you know, money is already inexpensive and corporations can borrow. the issue is, do they want to? and do they want to expand i don't think another 25 basis points is going to help the real economy all that much. we will wake up tomorrow morning with global yields lower, which will probably pull our ten-year lower as well. and that's a problem then you kind of get this reinversion on the two tens, which is another recession signal the problem with the trade issue is that you're just pulling the long end down. >> we're debating whether the fed can do anything to turn market sentiment around. i do feel for christine legarde goi ining into her new job. >> it's not helping. >> what do you do in the short term to offset now tariffs on

top of, manufacturing slowing down eurozone data is not going to improve in the short term if these tariffs come into play. >> banks that are zombies. they had a chance to do what we did, put them all through reorganization, create buckets of bad assets and let those work through. they didn't do that. they covered it up they've been doing this thing where now they're cutting further into negative territory. what that's doing is taking already fragile bank balance sheets, making them worse. and the united states can do fiscal probably not now because they want to kill each other. that's the difference. they're separate governments, have different regulations, different tax regimes. it's not going to work i don't know that it's as simple as oh, we'll just cut more or now we'll buy european etfs. not going to work that zblae house speaker pelosi and senate leader mitch mcconnell, on our

air earlier this week, float infrastructure. >> that would be great i root for it. >> let's get over to bob pisa inform i with a check on biggest losers. >> this is about watching the consumer, engine of global growth you want to watch big, big names that have done really well this year your costcos, home depots, starbucks, nikes and milk doncd. starbucks already a little bit week 20, 15% drops that's certainly a sign there's concern about that. consumer, two big ticket items today, going in the opposite direction. housing was great. lennar had outstanding numbers today overall. yet we saw ford weakness there overall. and housing is up 16%, ougauto manufacturing is down 11%. lennar, new high for lennar. great numbers, ford

disappointment there, general motors also to the downside. finally, e-trade, just a press release just out from e-trade, they are matching zero percent, zero cost commissions for equities and etfs. ameritrade did it yesterday and charles schwab earlier in the week. >> i want to pick up on that story with you we were discussing it before the show. >> people are waiting for commissions to be lower. now they're zero everyone sold at the same time i wish they hadn't done that it's a huge win for individual investor, for my clients when we buy and sell various stocks and etfs some of them the client has to pay a commission on. barry and i woke up this morning and made our client costs lower by getting out of bed. so for my standpoint i'm glad they're doing it

we got the call from all of our custodians this morning, don't worry. don't worry. we're doing it, too. we're doing it, too. we even got firm dates you'll not hear me complaining. >> you see a stock like lennar, closing up almost 4% in what's been a pretty rough session, some rebustness there in the housing market how closely are you watching that do you see it as an outlier or potentially read through that, the economy here is holding up better than the mark has been fearing? >> the rate cut went to work we lower the 30-year mortgage rate and timely are seeing some light in the housing market, which has really been very sluggish for the entire recovery we just haven't really seen an acceleration first-time housing buying we're seeing that now. ultimately that's what we don't see a recession coming you see fundamentals still working in the economy eventually, we'll filter through. the issue really is if you don't

have ceo confidence moving forward, if you don't have small businesses willing to hire, then you are really going to hit the real economy on the consumer side and the trade issue is pivotal here it is not noise. it's fundamental to actual economic decisions that corporations are making. >> alicia, josh, thank you so much for joining us today. now stocks selling off for a second day in a row with all the major averages eraising their gains as economic slowdown persists david rosenberg, chief economist. very good afternoon to you both. david, you must be a little embarrassed. you were so bull esh fish for s. talk us through, david, the amount of data we've seen this week and whether you need to see it confirmed now by services and jobs on friday to really confirm the bearish outlook you've had

for so long. >> the problem is that by the time you wait for the confirmation as an investor, your head has been sliced off. for all the talk about what a low share of the manufacturing of the economy, it reminds me of all the pundits coming on your show 12 years ago, telling you what a low share house something. talking about the powerful effects of housing and now manufacturing has on the overall economy. so, it starts with a producing sector, then with a lag, it hits the service-producing sector the reason services are so slow to move down, social services and education health care are not cyclical what moves first when heading into a recession is the economic sensitive sectors and they're behaving classically as they typically do head of an economic downturn it's not different this time around by the way, it's not just the ism breaking below 48. look at the transports to

utilities strength index it's broken down it's slumped more than 30% coming off an inverted yield curve, small caps are within four percentage points of an official bear market it's not just about the economic data there are sign posts in the fixed income and equity market telling you that the economy will be slowing down further from where it is right now. >> do you agree? >> yeah, i agree with most of what david is saying in terms of i think we're seeing visible weakness the weakness is, i think, born out of that downturn of oil we've had. the trade war, that's really hurt inventories and the business cycle and we had fed tightening last year i think these cumulative effects are definitely a drag on not only manufacturing, but, of course, investor sentiment i probably don't agree, you know, where we're going to break with david is the idea that this downturn is the start of a

cyclical recessionary dynamic. instead it's just, you know, a correctio correction. >> so, tom, where are you in terms of your forecasts the next six to 12 months >> i think this sloppiness has been communicated by the bond market for some time we wrote that the ism would likely break below 50 because of what the 10, 30 yield curve was telling us it followed the course we expected now we'll start to see the benefit of fed easing, huge vintory correction on top of that from a market position. the call ratio has gone wonky today. the strength is about to touch 30 that's a tactical signal most of our clients are sitting on cash, and are really bearish. to us, the most unexpected thing, the thing we thiching is

most probable is a big thing. >> david the last time we saw a contraction in manufacturing data and so-called investor recession was, what, twch to 2016 it didn't bleed over to the consumer side of the economy why does this feel different to you? >> we are in a totally different bulk of uncertainty right now. in 2016, were we in the middle of a global trade war? the answer is no in 2016, the fed at that point had only raised rates once go back to 2016 and look at the shape of the yield curve it was steep look at the shape of the yield curve today. it's flat. i'm continuously amazed that the people who dismiss the yield curve cycle in, cycle out. the shape is as flat as a pancake. it's interesting that nobody ever has a problem with the yield curve when it's steep. it's a wonderful indicator when it's flat people question its voracity we have a different shape to --

what the bond market is telling you, we're in a much different bond of uncertainty related to trade and coming into 2016, if you remember, we're heading into the election donald trump got elected what nobody is talking about is this impeachment proceeding and ukraine file it's not what it's doing to donald trump it's what it's doing to joe biden and elizabeth warren's prospects. this is what people are looking at behind the scenes, is the rising prospect that we could see a democratic sweep in november of next year. and with capital gains taxes, dividends taxes, we could see a radical shift in fiscal policy we've never seen before on top of the trade uncertainty i would ask tom, who is a friend of mine, like who is going to be committing capital to the

economy in this bond of fiscal and trade uncertainty? what happens here is that you start cutting your capital spending, spending intentions, which, by the way, is in the data and then with the lag you start seeing it in hiring retentions and employment that's when it starts hitting the consumer it's a quarter or two out but i see it in the tea leaves. >> tom, your response? >> i think david nailed it on the head the biggest risk to this market would probably be a shift in the white how. investors would be pretty nervous about what it would mean to have, you know, a democratic president and so yes, i think in a way it's kind of circular. i think the market holds up, i think trump stands re-election. if the market tanks, it raises the prospects that david just mentioned. >> david, one quick final question what did you thempg of the extra tariffs on the eu might have to eurozone growth

and whether that can infect the u.s. in the short term. >> absolutely and on top of that the brexit uncertainty germany, the engine of the entire continent, is pretty well either in a recession or on the precipes thereof no country, maybe outside of albania, operates in a vacuum. what germany means for the entire eu and the eu as an economic unit is bigger than the united states. revertebraerati revertebraerations this forecast right now from what's happening by the opening months of next year. i think what's happening in europe is very important i think at the same time all these things are keeping the u.s. dollar sky high, which is a

turn tourniquet on the economy right now. >> josh lipton has some news josh >> biggest issue of our time, how apple ceo tim cook has talked about daca in the past, immigration policy known as deferred action for childhood arrivals cook has repeatedly spoken out on behalf of these dreamers in tweets, conferences and op-eds now he's taking his support a step forward cook, apple hr chief deirdre ow bry o'brien filing a brief, the first time they're lending their own names as well, the brief stating we are distressed at the process of ripping our daca colleagues from the fabric of

our company. our country made a deal with a highly vulnerable population interested in a bright future and we should keep that deal a currently employs 443 dreamers across 36 states, working in a variety of roles, hardware and software engineers, retail store geniuses, operation specialists. in total, remember, they employ 90,000 people here in the u.s. it's not just important to cook. it really does reverberate across the tech industry microsouth of the's brad smith has called protection of dreamers a humanitarian obligation and economic imperative guys, back to you. >> certainly another very big factor for quite a number of companies. josh lipton, thank you for bringing us that news. >> bed bath and beyond results are out. courtney regularn has been digging through those numbers. >> morgan, for the fiscal second quarter for bed bath & beyond it's a bit of a mixed result

looking for earnings at 3% comparable sales also worse than expected down 6.7%, the street had been looking for those kocop to fall but just 5.4%. that is about in line with what the street was expecting the company says they've made substantial progress on their search for a ceo and do expect an announcement to be coming soon they also call it good progress on their four main priorities, the first of which is stabilizing sales. i'm not totally sure that happened here. shares have been bouncing around after hours, at least a bit positive by .2%. back to you. >> third dashboard of the day, let's send it over to mike. >> icy hot a bit of a contradiction. mixed signals here if you look

at sentiment gauges. fear and debride index, something we track once in a while. real market-based indicators of risk appetite. you see it's declined to levels not too far above the extremes of august. we got to those august lows after a multi-week pullback. people got anxious and bearish what's good here is that we're coming off levels that weren't that extreme to the upside it wasn't as if everybody came into october really bullish and has a lot of that to unwind. that's a good part on a more mixed signal if you look at this asset allocation by the american association individual investors ask people every month what's your asset al gas station? 19% bonds, 14.5% even though people are a little bit worried, tactically feel like the market is fragile, they're pretty much into stocks especially if you look at the ratio of stocks to cash, it's at a high level historically.

the market itself has gotten people, even if they're nervous about it. >> mike, thank you very much up next on closing bell, behind the global slowdown, markets under pressure today we'll discuss the big risks with former morgan stanley stephen roach when we return ♪ ♪ ♪ ♪

494 points seema mody standing by with a

check on industrials courtney reagan is here, and deirdre bosa has a check on markets. >> a rough month for the industrials. one is due to the slump in u.s. manufacturing and the ongoing recession. two, the uncertainty around the upcoming trade talks and if tariffs will be escalated. remember, earnings from the major industrials like united tech, 3m, caterpillar have been hurt by tariffs and the ongoing weakness in china. oert factor in play here and the more important splapgs for the recent underperformance is the stronger dollar. that, of course, makes goods sold overseas in markets like china and europe more expensive. another subsector within industrials getting caught up in today's sell-off, defense in aerospace names, lockheed martin, raytheon and general dynamics all down. back to you. >> thank you so much, seema.

let's check in at the movers on the nasdaq. >> the nasdaq did close off session lows, still down 1.6%. we've given up those september gains for the nasdaq it was a broad-based sell-off. when you look at the kind of stocks we're selling you had the semi selling, biotechs, consumer names across the board. only ten names ended up positive in the s&p 500 when everything settled out at the end of the day. semi conductor stocks, not as much as what we saw from some of the other groups american airlines and united airlines those, of course, are part of that transport group we talked about multiple times during the day today and those were the biggest sellers, really, in the nasdaq 100 although we had walgreens, and verisign, just an indicator that anything that could be sold today was. back to you at the new york

stock exchange. >> thank you, courtney deirdre bosa has more on these sell-offs. >> near record lows, some of the enterprise names, they've held up better but even they're getting hit in this month's sell-off zoom, pager duty average return from nearly 120 ipos this year is just 4%, according to data from renaissance capital. half are trading above their offer price, guys, really underlining this double standard that is emerging in the ipo market guys >> deirdre, thank you so much for that time for a cnbc news update. sue has that for us. >> what's happening this hour, everyone, president trump continuing with his harsh words for house intelligence committee chair adam schiff as he denies reported kens of a phone conversation at the center of his impeachment inquiry. >> you had a great call with the president of ukraine

it was 100%. you have the transcript. and then schiff went up and as chairman of the committee got up and related a call that didn't take place he made up the language. hard to believe. nobody has ever seen this. i think he had some kind of a mental breakdown. >> russian president putin sided with with president trump in the political storm that's raging in washington, saying trump had done nothing wrong by looking into possible cases of corruption in ukraine. he also briefly joked that moscow would hack the 2020 presidential election. and prince harry and husband wife, meghan, meeting with the south african president in johannesburg after she sued a tabloid newspaper that she said illegally published a personal letter she wrote to her father the daily mail says it will aggressively defend the charges. you're up-to-date. i'll send it back to you. >> sue, thank you very much. >> the u.s. announced tariffs on european goods, including 10% on

aircraft and 20% on agriculture products, set to take effect october 18th for now on how escalating trade tensions to impact the economy, let's bring in former chairman of morgan stanley asia stephen thank you so much for johning us let's kick off with those new tariffs being introduced on the eu are you surprised to hear that and how significant an impact might that have on growth and trade between the two regions? >> i'm not supplies rprised. this has been brewing for a while. actually compared to the tariffs battles with china, this is small change it's really not an enormous material consequence, but it's emblematic of the fact that political leaders, especially our own president, feels empowered to deploy tariffs as

an instrument of international economic policy without any appreciation for the tragic history of actions like that in, say, the 1930s or other periods as well. >> stephen in terms of those trade talks between the u.s. and china, they're expected to meet again here in the u.s. next week what do you think is baked into the market in terms of expectations and do you think we could actually, potentially, get some sort of deal in the coming weeks or coming months >> well, i think, you know, there's hope, morguen. but i think realistically, the best we can look for would be a superficial deal, giving chinese the opportunity to buy more soy beans, possibly some airplanes, but the big structural issues on technology transfer and intellectual property, theft,

allegations of illegal subsidies, we're nowhere on those. and the u.s. insisting on enforcement mechanism that china is not going to buy into so, no big deal. maybe something cosmetic and even that, i think, is a stretch in light of other issues that are on the plate between the two countries right now. >> where do you stand at the moment, stephen, as the global growth environment and whether we're likely to hit a recession in certain reasonables and how soon that might arrive >> i think we're in a pretty precarious place, wilf the issue in terms of trade tensions, which i don't think is discussed because it sounds a little technical, is that we live in a supply chain world so when we impose tariffs on one country, they're being spread immediately to many, many countries around the world i think the numbers on a study i

just read showed about 73% of all the expansion in fwloebl trade since the early 90s has come through sploi chainsupply chains china accounts for that centerric activity we're not squust putting tariffs on china, but a number of countries in east asia, including japan, korea, taiwan and others and that's why global trade is so weak that's why the global economy, from east asia to germany and elsewhere in europe is being hit hard by this bilateral -- seemingly bilateral tension between the u.s. and china. >> stephen, just quickly, final question on your latest situation in hong kong. >> well, i think it's tragic i think it's a great city. i lived there for a number of years. i think hong kong is going to

have a difficult time reclaiming its mantle as an economic hub it makes it difficult to manage their external relationships as well. >> stephen roach, thank you for joining us today. >> thank you. >> phil lebeau has details on tesl tesla. >> the company reporting q3 deliveries falling shy of wall street's estimates estimate on wall street was for q3 deliveries of 99,000 vehicles tesla says it delivered 90,000 vehicles, 79,000 in change were the model three, model s and x a little after hours as they report slightly weaker

deliveries of 90,000 vehicles. >> just looking at it, sx is 15% growth, model three softer at 8%. >> yeah. don't get too caught up in the percentages. look at total number everything is coming out of the freemt plant and going all around the world they've suffered from lumpy deliveries what we're looking to see more is a consistency, quarter to quarter, to quarter from tesla 99,000 was the expectation people had, nice growth from q2 at 95,000. 97,000 a little better but not at the rate of 99,000. >> phil, thank you. >> for more, let's bring in james albertine from mile one and david wolstern from morning sta

star. >> now that i'm on the corporate side running strategy for large auto group, we watch demand for electric vehicles very closely even though it may have fallen a little short of wall street expectations it's still a very competitive vehicle price point perspective, but still there aren't a lot of manufacturers that have enough volume right now in dealerships to address that nand that tesla arguably has had on evs for the past seven, eight years in the scheme of things whether they do 1,000, 500 or barely miss as they did, what it matters is what does it look

like in five, ten, 15 years? but my other reaction is this is a sign of kind of like everyone who wants a tesla is starting to get one at this point and cars respect at a very affordable price point. model three is not a mass production vehicle there were negative numbers as well yet all the stocks traded lower today. does that seem warranted to you? >> i think we're certainly long in the tooth we've seen sales the last year or several years even and there were some factors out there. storm activity impacting florida and flooding in the region aside from that, as dealers we're having to make more of our

profit from the used vehicle side of the business it has been year to date low double-digit rate. pressure on the new vehicle side we're off-setting that with other aspects of our business, watching credit very closely, duration of some loans outstanding in the six and seven-year territory we want to take some time to understand, is that a fupgs of the lower rate vern and banks getting more comfortable lend i ing. or are consumers start to show signs of weakness? that's the question when we think about where are we in the cycle. to this point we feel pretty good about it. that's what we're watching. >> key question for investors, absolutely james and david, thank you for breaking down those numbers and the instant reaction appreciate it.

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let's send it over to mike santoli for his final dbd. mike >> wilf, alone together. it's a bit of a check on

corporate coupling volumes this year. >> so clever. >> m & a volumes through -- i know i'm trying to spice it up today. through nine months, obviously the third quarter just ended on monday, memorier market tallies up the volumes, broken up by quarter. m & a volumes by quarter, in trillions of dollars so right here what you see is essentially roughly on par with the three-quarter pace we've seen over the last five years or so if you annualize this number, you would still be down 7% versus last year and arguably maybe you're going to see a little back-to-back of a slowdown the next couple of months because of some policy uncertainty and other things one of my takeaways on this is given the fact that overall value of market cap in the world is up sub stapgsly the last five years, you've not seen a rise in m & a to the degree you might otherwise expect, even though bond markets are very generous right now. it seems companies are not in that mode of feeling they have to buy scale

whether that changes or not is unclear. expansion and cycle has been going on a long time and hasn't gotten into a frenzy. >> investor banks has been a good year for ipos that could fall off a lot in q4. >> exactly. >> mike, thank you. >> up next, we're all over today's major market sell-off, dow closing down 494 points. 1.8, almost 1.9% today we'll get the bull case, though, for stocks when closing bell comes back ♪

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well back. the dow finished day down almost 500 points led by a slow down in on weak data tony divider at cannacord ingenuity. thanks for joining us. >> thank you for having me wilf. >> how many stocks are above and below the level. >> from a tactical level, first of all, you have to have from a tactical level when more than -- when more than 90% of stocks are trading below the 10-day moving average and at the close according to bloomberg it was 8% of stocks trading above. when it gets that washed out you're within ear shot of a bounce it may not be the next day

but when i went back and look over the last few years you get a lift you don't want to sell into two really bad days like that. this has been happening underneath the market for the last couple weeks. what happens is it ends up in the indices. the other stock has done it. >> where do you expect the s&p to end this year. >> 290550 plus or mine our target for next year is 33.50 i think i'm low. the guys printing the money globally told you the game plan. so we come on tv we try toll you why it's good or bad or should or shouldn't the guy's printing the money told you that they're going to print more of it if the data got worse. guess what the data getting worse. even janet yellen last friday said the fed is too optimistic on the u.s. economy. so i don't want to fight the fed knowing that news back drop can create volatility. >> isn't that a message you

would expect the market to intuit in other words you shouldn't have to say this is what's happening why do you think the market is fixated elsewhere. >> it happens each time because the data gets worse. we've said it so many times the people are sick of it. we're in the third mini recession the manufacturing secretary frere global chaos creates the per sthaepgs you're in a menny recession what that has done is created bear market in the s&p or down like close to 20% and then the 10-year bond yield doesn't bottom for months after that last fourth quarter was discounting the slowdown that we're having now the 10-year is reflexing that. so in our opinion it's time to be offense every. >> what would you be buying on a day like today. >> history shows we love opinions i'll tell what you the data shows. if you believe that the 10-year has bottomed and we're not going into recession which i could not -- i would not believe give are fifen the which that credit is acting and the stim la active effect on housing and autos.

but if you think the 10-year bottomed which i do history shows you play offense use weakness for the opportunity. you want to be in consumer cyclicals financials, industrials info tech, even the more cyclical sides of info tech i'm not scared to call for a correction i've done it many times. i didn't think we would go down 20% twice this cycle this is not one of the times because the entire global central bank community is trying to figure out a way to playbook it work. right? and when that happens you don't want to bet against that kind of liquidity coming in. >> tony divider thank you for joining us >> thanks for having me. >> up next, your wall street look ahead, the key things every investor needs to watch heading to the new trading day when "closing bell" returns

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and then do something about it. turn problems into opportunities. thanks drone. customers into fanatics change the whole experience. alright who wants to go again? i do! i do! i have a really good feeling about this. more details on trade just coming in. kayla tausche has the latest. >> ustr just putting out the list of the products affected by the higher rates of tariffs. include at 10% tariff on airplanes and other aircraft and a 25% tariff on a wide variety of goods, including irish and scotch whiskeys, wools and wool suits and kashmir sweat

frers the united kingdom and a wide variety of cheeses, olives and wines from spain, france and the uk. certainly a lot of what we expected, a lot of what we learned earlier this morning but certainly a curated list to hit european products most frequently imported into the united states. of course you do have u.s. and eu negotiations taking place on october 14th and these tariffs would hit on october 18th just days later. >> kayla, these are 10% tariffs, you said. >> 10%. >> or 25%. >> >> 10% tariffs on airplanes and aircraft only. the rest of the items on the list will see a 25% tariff but that 10% tariff on affect, wilf, we are seeing companies respond. delta airlines put out a statement earlier saying companies from have to commit to buy the planes year in advance and there is a financial impact on travelers on employees. >> kayla, thanks so much for

that great reporting. >> stock up on trips overseas. >> frankly after a selloff like that on that news time to buy a scotch or glass of french wine before they take affect. >> thanks for watching big sell dow town 494 points >> "fast money" begins right now. live from the nasdaq market site overlook new york city's stiemts square this is "fast money. i'm melissa lee. traders are tim seymour, karen finerman, dan nathan and steve grasso beginning with breaking news stocks slammed as a major selloff hits wall street the s&p 500 posting the biggest two-day drop since august. and the selling widespread all 11 sectors finishing in the red. so the question tonight is simple is it time to get worried, tim. >> the data seems to be getting worse. so we have important data coming up tomorrow and friday ism services and we want to believe this is the more important ism number as opposed to manufacturing number which got everybody spooked.