political season getting heated. this market is not going to shake this one out rob, quick like a bunny. >> xli, industrial sector etf benefiting from the rotational trade. three positive months of ism, and best since january '19. >> life sciences, transport lo jestics, just secured a huge investment from blackstone last week. >> josh, a quick thought >> crowdstrike. >> there you go. folks, great being with you all this week. that does it for today "the exchange" with kelly begins right now. tyler thanks i'll see you again shortly it's been three months since the markets have seen the kind of action we've been seeing, near session lows right now the day started relatively

quiet. in fact the dow was up about 100 points, but the selling started, and the tech darlings you are now leading this sharp move lower. there's the nasdaq down almost 5% right now in one day. the nasdaq is down almost 600 points we're going to look at why the sudden change in confidence. let's start with dom chu for a look at exactly where we stand now. >> kelly, let's look at the markets as we stand, because we are right near the lows of the session so far you mentioned the dow's low so far today. the s&p lows were down 127, so done 125, we're hovering right there. of course the nasdaq composite, the underperformer today this is a year-to-date basis, you have to go back to the pandemic lows, a huge move higher this right-hand side of the chart represents a 5% drop from the record highs we saw just yesterday sort of put it all in

context. with the broader markets, you're seeing weakness fairly across the board, but some outperformance in what's happening with energy prizes, relatively flat right now, utilities holding up as well meanwhile, the technology sector, the real lag guargards . zoom video, apple and docusign every one has made a record high just this past week. they have led to the down side remember, docusign out with earnings reports later this afternoon. ahead of a big jobs report tomorrow, a lot of things working now. >> dom, we'll see you in a moment

hi, recollection big data, at these levels, every sell offis contagious. briefly was trading around 60 basis points, which is ten basis points above, open the chart up. as for the yield curve, kellie nailed it. under 50, and let's take a wide curve trade, 30s to 5s, it's gone from 123 down to 2110, and could epps in mind, the dollar is virtually unchanged after a small bounce, several sessions ago, but commodity prices are getting hit. let's look at corn, copper and gold on the intraday chart, you can see what i'm talking about

kelly, back to you. >> rick, stick around for a moment, if you would we have breaking news from charles evans. steve liesman has the details. >> chicago fed president charles expense saying a new fed action could be coming pretty soon. he expect, quote, outcome-based guidance where the -- specifically to hitting certainly economic targets as well as new quaint at a timive easing he says that could soon be beneficial, very explicitly saying it could happen soon. perhaps he does. he goes on to say the lack of fiscal aid represents a, quote, very significant downside risk, and puts vulnerable households and businesses at risk he a forecasting is strong third quarter rebound, but ultimately sees the full year, some other details on the economic outlook. he says the return to the

pre-crisis level doesn't happen until later in to 22 unemployment will be around 9% by the year end, the unemployment rate will hit 5 to 5.5% by the end of 2021. finally inflation he expects to be under 2% for a time, and he talks about the human and economic toll both on kids and parents, and the broader economy, very large with not opening schools. >> 858 points down a moment ago, to very, very close to session lows so rick, we'll ask you about that this attitude business charles evans, you think already priced into the market? it has too much stimulus and too much at stake. from the fed's decision it's a binary decision on its part. personally i think they're

erring on the side of too much. it's a crude way to deliver some of the that needed liquidity >> let me bring steven back in for additional context here. the concern isn't new, but the more specifics about the fed's next steps seems to be >> i read about 10 or 15 speeches of these a week and speaking to a lot of these men and women, but i can't remember the other person who just was another one who seemed to suggest that coming in

september, the fed may be announcing additional quantitative easing. who signaled more stuff is coming in september. i think the market that may be being built into the market, and the issue being there's not just a few geraniums being hurt there's a lot of bushes and trees and substantial parts of the landscape that seems to lack water. kelly, this morning we learned there are 29 million americans receiving some form of jobless benefits yes, the initial claims improved that number is from the only number we can get. >> steve and rick, thank you both very much for the latest fed headlines and latest moves in these markets take a look at the market action

since the bottom in late march the dow and s&p are both up more than 50% since then and the tech-powered nasdaq hats skyrocketed more that movie playing out in reverse. for more i'm joined by neil hennessey. and samir, analyst at wells fargo. welcome to you both. neil, is the worm turning here >> no, i don't think so. look, i know it's a big number, 800, 900 points, maybe 1,000 points, but the market was at 29,000 it's risen quickly the s&p 500 has really been controlled by four to six stocks the nasdaq was up 31%, but if you took out apple, amazon, google, microsoft, tesla, facebook, next thing you know,

the nasdaq would have been up 10%. so you start to look at where is the money moving to? we have talked in the past that it's going to move out of the this high-tech, high-growth arena into more stable companies that will be around for a long, long time. >> i know some of the your favorites are whirlpool, toll brothers, you can see the bend toward housing and the spending we'll circle back to samir, let me bring in your thoughts on the sell-off if the stay-at-home names are underperformening ifs reopening trade is outperforming, but you have bond yields slumping. how would you tie this all up? >> sure. we would -- i would take the other side of it as more of an interruption so, you know, it probably was long overdue when you start to do so stocks rally into stock splits, which basically

shouldn't be anything other than accounting phenomenon. that always worries us a bit so, you know, did note that things might be getting frothy, but we like tech, consumer discretion, health care, communications we think a lot of these trends are here to stay, the low bond jai jails. and it kind of keeping coming back with what we expected, because the fed will be longer than we expected >> neil, how would you respond to that? >> you know, i'm in agreement. it's just a blip in here the long-term picture, habits are changing, kelly, there's a lot that's happening i know the small caps have

really run, but that's a whole different ball game from if you look at the russell 2000, you're looking at the top four companies, three were gambling companie companies. the fourth is a pharmaceutical company working on a vaccine they have gone crazy the real market and where i think the money should be going is into the mid cap market, where we have truly mid cap stocks that can withstand an economic tsunami, but big enough to buy a small cap, but also be creative to a large cap. >> it's interesting, you're now the third person in the last couple weeks to look at the mid cap part of the market, so clearly people are landing in the same place on that samir, for many people who are asking, should i be bailing out

of the tech for the foreseeable future, you stated earlier that you think the previous trends are going to resume. is the momentum going to be so powerful that it overwhelms the fundamentals >> shirr we would encourage that investors not get carried all. if they're thinking on an interim basis, a lot of these issues will settle themselves. these are retrace months, so again, we've seen -- we saw one in june. it took about a week or two to resolve itself, so from that standpoint, this is not the time to bail out. if anything, anybody should have shah shopping list if they're not favor technology, again, the election, maybe even covid cases, they may lead to some volume 2i89 if you think 12, 15 months out, it's hard for us to see an

equity world that's not a bit better than today. >> what would you say to somebody who as owned tesla for the last couple hundred dollars, and is trying to figure out what to do. >> they did the 5 for 1 split, which was good then with the drop in the price now, kelly, it's selling a little under 900 times earning i'm not an economist or annual it's, but 900 times earnings make up your own mind on that one. >> down almost 20% this week thank tut both neil hennessey and samir samafa, thank you for your thoughts. facebook is on pace for the worth day since june and the cloud companies, which have been market darlings, also fall hard, sinks 11% despite an

earnings beat, after disappointing results. we will dig into it, next. give you my world ♪

♪ how can i, when you won't take it from me ♪ ♪ you can go your own way ♪ ♪ go your own way your wireless. your rules. only with xfinity mobile. welcome back from social media to the cloud companies, tech is getting clobbered on all fronts today. let's start with facebook.

shares are dropping after it announced it will not allow new political ads a week before the election the cloud companies are getting hammered the clouding etf is down 6%. dropping 28% no different for the chips today, either. some of the worst names, dropping about 5.5%. inindividually a recent high flyer about 9% today julia boorstin and jon fortt are joining mess jon, it's really accelerating now. investors were discriminating between different segments of clouds when salesforce had strong results and then workday, names like pager duty got bid up

youo, you know, yet, it dropped, it's on the down side, similar to how they did it on the up side >> is it possible to what they said that corporate spending it patterns has spooked the market? >> they also said -- they talked about the continuing need where they're charge the plans they have toic in the selling capacity i don't know that investors are ned listening to the glance later of that message?

am i supposed to believe this has anything to do with the facebook announcements in the last week, we'll see the candidates still run before -- this really is a tiny piece of their overall pie. political advertising is very small. >> i think what we are seeing here you know, facebook and twitter both down pinterest off about 7%, they stocks have gone way the on recent months.

>> and we've talked about -- which is also making some moves, but we know they have to go out. there's one fundamental factor that's not at played here today, that's interesting higher interest rates rates are down, so they're still in search of a catalyst. >> yo eismg i expect eight days before the election, they're

going to put extra adds into the sim. homefully facebook and others will vet that then why shouldn't it be true more broadly? >> mark zuckerberg has committed to free speech, of course they have these risks around hate

speech this is just one of many things he's thinking about. i think fundamentally the question is how quickly are markets and economies opening up and how much are enterprises spending >> yeah, you have cruise stocks, airlines and hotels are outperforming. it doesn't make sense it's part of the reopening or -- it seems like tech just may be taking a breather thanks, we'll leave it there for now. ahead, we'll look at shares of tesla, down 10% -- or the 7% -- or 8% portion of that today. is all of that getting investors

worried? as we head to break, take a look at the names bucking the trend today. macy's up 10%, best performer in the s&p right now. %.yond made up 1 we're back in two. woman: my reputation was trashed online.

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get your free reputation report card at reputationdefender.com. find out your online reputation today and let the experts help you repair it. woman: they were able to restore my good name. vo: visit reputationdefender.com or call 1-877-866-8555. stocks are still deep in the woods. let's head to dom chu with where we stand. >> ever so slightly off the lows of the session so far. still, though, all three indices in negative. the nasdaq pacing the declines down nearly 5%, about 563 points to the down side there with regard to the pictures shaping up for what industries

or sectors are specifically in focus right now, the outperformance is but meanwhile, no surprise technology, consumer discretionary are the laggards semiconductors, that industry hit a record high just yesterday. we pulled back nvidia. salesforce after the huge earnings beat, that particular stock down 6%. were morethene to keep an eye on, kelly. as we look at the movements. the momentum stocks up about 17.5%.

you can see a converging of that trend. let's get to sue herera for our cnbc news update >> tyson is planning to open medical clinics early next year to improve the health of its workers and protect them from the virus. the meat-packing industry has been eye specially vulnerable to covid virus. in madrid, a facility has been shut down the academic year kicks off next week. tiktok has launched a advertising program with the tools to measure success of their campaigns. this comes as a joint effort bid for tiktok u.s. operations. one million students in

wuhan returning to their classrooms, as schools reopen for the first time in seven months local officials reporting no local infections since may >> while the major averaging cinch today, cruise lines are a relative bright spot we'll have those details next. there's carnival up more than 6%, we're back in o.tw

welcome back

let's drill down on today's sell-off nasdaq, by far, the worst performer. phil le bo will look at tesla's big drop seema mody looking at the sensitive cruise names with several bright spots today kate rogers looking at the food stocks mike, let's start with you >> more than anything else, the strength of the market and acceleration in recent days. we did have a stamp peet of buyers, and that stam ped seemed to corner itself i don't think there's anything in particular. there were some cracks this week when apple couldn't build on gains. that seemed to spill into -- and the options market

which shows open aggression. we were more than 20%, the relative strength index -- you don't need a ph.d. to say, yeah, it's looking overextended. what do we look for as a soft landing versus hard landing. >> if the nasdaq is to have a relatively routine pullback, it would be another 3% or 4% to the down side, and you would look for the market to get support there. we obviously get a jobs report tomorrow it might be something to that end. but the corporate debt market is not unsettled at all, really that's a net positive that

suggests maybe it is s. >> plus you only between two out of three things to make a story right now. if the macro is slowing, covid is getting worse, i'm sorry, the cruise hotels and airlines are outperforming. >> the action is knotts consist president. >> i would imagine even if people are nerve out about the jobs report, then explain why the reopening trade has legs. >> that's exactly right. best explanation -- even the s&p 500, we're back to levels of like eight days ago, right >> right that's fair. it's gotten quite momentum driven lately. phil, let's talk about tesla this is emblematic just like we were talking to neil hennessey about tesla is the one place where you

were days ago there has been a catalyst, the stock split and then the share offer. >> you can't look at that as a catalyst, but there's nothing you can point to and say, aha, that is the reason sometime intraday on tuesday, if i'm not mistaken since then it's pulled back, but keep in mind, this is a stock -- if you go back to the beginning of this year, it's up approximately 400%, something like that, so it haz this resistance that there seems to be this resistance between 405 and 410. i think we saw it yesterday, see it again today in terms of market cap, they are now beroundlow 400 by the way, a few people suggest this sell-off is because they raised $5 billion through another share offering i don't know if you can

attribute this to that the stock didn't move initially when it was announced. it really has picked up momentum with the rest of the market. they have battery day coming up, anything else that could change the story? >> battery day, september 22nd between october 1st and 3rd you'll get the q3 deliveries, end of october, early november, that's when you get the third quarter finances. >> at this pace it's going to be a long time to way phil, thank you, sir let's turn to the leisure industry you would think on a big down day, the cruise stocks would be deep in the red, but no, they are afloyd carnival and norwegian are the best performers. >> carnival, though, setting

sail next weekend. only italian -- for carnival, the italian market is a small piece of the pie, but the hope, at least for the market, if all goes well and ships remain covid-free, these protocols will serve as a model for u.s. cruises. from my reporting, with the discussions between the cruise lines and cdc still haven't made meaningful progress, so it's unclear if we'll get to sail this fall. you're seeing a lot of hope. >> if the cruise lines are bucking the trend baas they've had industry-specific news, but the hotel names -- the airlines for once, you're seeing small gains, which tells you it's not a -- covid is spreading, shutting things down was going on with the hotel stocks >> not down as much as the broader market, but the ye

year-to-date stocks will show you we were discussing a short list of new york hotels that had missed their debt payments at the top of the list was hilton times square. last need they were they are shutting doors, 200 jobs going with it. now focus is turning to other hotels, the standard, the meat packing, in total 34% of new york hotels are delinquent that number rises in other urban markets like chicago and houston, which also is getting hit by the weakness in the energy sector. so now the focus turns not to just the hotel brands -- they collect that fee every time that brings in more revenue, but also the real estate investment trust. >> great point you mentioned some pretty iconic new york names there, especially

the standard >> i mean, you look at where these stocks are trading, in compares son for a year agos and they still environment gotten that level of approval from congress yesterday. >> and maybe invest offers hope something is coming down the pipe seema mody, thank you. let's check in on the restaurant stocks, though, a different story today. some of the best performers this year all taking a breathing as the industry as a whole is facing a labor shortage as noted by the beige book yesterday. kate, what is driving this action >> you just mentioned, a lot of

the stocks that have outperformed year to date are taking a breather today. wingstop down around 5.5%. domino's down 3% both down between 1% and 2% each not related to the sell-off, but more broadly one the strahan industry, there is a labor shortage starting to develop they actually said that 40% of restaurant operators that responded to a recent survey of the group's members said they added employees to payroll in july and august, but that 77% said they had difficulties either bringing back their employees or finding new employees. that's definitely an interesting trend. 8 million workers were completely fired or furloughed from march through may, according to the national restaurant association there's been a ton of job losses, and now you're seeing trouble trying to bring workers back on.

>> sup because of safe concerns? i would imagine people say, look, i don't want to take the risk, but if i have to, i have to >> i think there are definitely a few things at play here. one obviously safety concerns. >> there was some unemployment benefits, the nifb said about a third of its members said the extra $600 a week did make it different to bring or workers. if a restaurant is operating at 25% or 50%, is it worth it for you as a server to go in and work potentially making it more different. i've seen the signs up all over

town kate rogers, i appreciate it. the man is on pace -- tech is the worst performing sector today. dow is down. does the downturn create big-name buying opportunities? that debate is next. stock slices.

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schwab stock slices: an easy way to start investing or to give the gift of stock ownership. schwab. own your tomorrow. welcome back we are tracking this market sell-off with the dow down, just a few points off the session lows by the way, it would be worse if apple hadn't done the stock split. everyone else is down 2% to 3%, energy an outperformer but we're up massively since the

march lows just by the headwinds we've, and with the coronavirus. we've seen this week, is it all a part of a larger correction? i'm joined by jim iuorio. >> and karen firestone, it's great to have you both here. is there more to go on the sell-off >> not much. i don't think this is the big one. yes, remembered that vix levels were at 26, 27, highly elevated when juxtaposed -- what that means is people were too complacent everybody knows it was frothy, elevated, so to me it's not the big one. what else it isn't is the big reopening rotation i know we have seen some buoyancy in cruises and hotels,

but i don't think it's that, either i think this is market whack-a-mole they have just got too far too fast >> and it's interesting, jim, i would have thought if it was the big reopening, maybe we would see interest rates going up. hey, the economy is looking better, prospects are brightened, but we're not seeing that if it's not either one of no, sir, then what is it >> to me it's an 8% to 12% correction i'm short the 11,000 puts, that's where i'm planning on getting long to me this is perfectly healthy market function to shake people out when they temporarily forget about rink what i was saying before about the vix, if it was at 12 or 13 going into this, i would be worried that people are way too out of touch for the risks. >> carey, you've got a lot of great thoughts on individual

names here, but would you echo what jim thinking overall? or are you more concerned about a bigger correction here >> let's just talk about technology and nasdaq names, it's up 18% in the last six weeks. there's been a feeding frenzy. so you have more companies that are 70% or more above their 200-day moving average this is an opportunity for people to sell stock that they have made a lot of money in very quickly. i think this move today has much less to do with the economy reopening than it has to do with the price level and extreme extension of some of these names that have just been rocket ships recently. >> i like the way you put it, it's ahn opportunity to sell

stocks that implies you can still get good prices. >> yes let's talk about area where you do think you can guy there are some names you think offer compelling value. >> it's interesting. facebook is up nicely this year, up close to 50%, but there's a lot of opportunity they have taken advantage of bringing people together, but expanding their network. people have adopted more applications than they might have otherwise pre-pandemic. we think it has more to go interest rates being low is good for them, and advertisers will like to come back. we like facebook, that is righter communications, u.s. basised, people using more wireless we like blackstone there's an opportunity with lo interest rates we think that has a major up

side. >> and american tower and re/max is in here. >> yeah. >> jim, the last thought here, where would you be recommending people move into >> first of all, carrie said the movement in those tech name was extreme, but i think it's important to remember the fundamental story is relatively extreme. we heard jay powell says he will get inflation coming head or high water i'm going to be looking at gold and silver, miners as well, but i think this is a pullback in all the things proponents of tht but these are times when it gets tough. >> jim iuorio and carrie firestone, thank you. kayla tausche has details on breaking news from the white house. >> the press secretary kay llei

mcenanny had a press conference. the press secretary reiterated the white house does not support shutting down the government and expressed confidence they would be able to secure funding for both a stimulus package and to keep the government even we'll see how that plays out when congress returns over the next few weeks on the subject of peter navarro, whose contracts are under evaluati evaluation, the white house is happy with his work. on the fda, she said there's no pressure by the administration for the fda to approve a coronavirus vaccine before the election, despite some reporting out there to the contrary.

finally on the election and some comments from president trump yesterday, where he seemed to advocate people should be voting in that state both by mail and in person at the polls, she tried to clarify what he meant is if someone was not clear a vote had been

welcome back the tech sector getting crushed in today's sell off with the dow down tech is on its worst day since june apple is the reason why it's down more than 6%. it's on pace for its worst day since march 16th why now? let's bring in tom forte it's great to have you here. tom, i'm going to start be you as the analyst covering the stock. do days like today or weeks like this week make you scratch your head >> thank you for having me on. you're seeing a pull back in tech broadly for apple, specifically, i think you had some momentum investors buying the stock into the split selling the stock on completion of split from a fundamental stand point i don't think anything has changed for apple.

as logictech pointed out you still have a billion consumers working remotely when you couple that with the launch of a 5g smartphone this fall, i still think shares of apple are really well positioned for the next 12 month period despite today's pull back. >> let me ask you a follow up. why aren't interest rates going up today if we're talk about favorable news on covid? my bigger point for apple investors is should they now be concerned that the progression of the economy into a reopening phase means this stock is going to perform poorly. >> i would answer no to the extent i don't see how a reopen economy dampens the consumer preference for 5g faster smart phones i would say those would be beneficial if we are sheltering in place and working if there is vaccine tomorrow

again, i don't think fundamentally covid headlines are wonderful progress from covid is excellent but i don't think it dampens the fundamental story for apple. >> tim, i'll bring you in with the very same question it's interesting because we know that apple will probably have a banner year next year because so iphone demand was crimped this year by the pandemic it's likely to come back they will push the iphone 12 launch into a bit of next year is the problem that's just priced in. how much was apple up this year before the sell off, 70% in. >> exactly ahead of the stock split things were going up dramatically we had talked in the past about what were the fundamentals to justify that

maybe this week it's some people taking a bit of profit >> if we were to say what is the direct impact on apple, what would you say that affect us >> at this point it would seem to be apple and some of the other tech giants have been the wirns winners of the pandemic. these are some of the kwee companies that people think are going to have a future and are a place to put your money at a time when there's a great uncertainty of what is a good spot for your money. that's what we have seen in the last few months. today is just more of that volatility >> fair enough >> final question to you tom perhaps it's not totally out dated but you had a $120 price target post-split. if you're constructive on their fortunes over next year, is that already priced in. >> i would argue there is still upside to where the shares are trading today on the 5g.

you asked the pandemic influence on apple it's been a transition to e-commerce sales and it's been consumers buying lot of tablets and laptops in addition to smart phones i think there's upside from today. >> gentlemen, thank you both today. we appreciate it that does it for the exchange today we'll have a lot more on the today's sell off down is down 804 points. nasdaq is down 573 points. nearly 5%. i'm join tyler with much more after this quick break - [announcer] if you've tried college but never finished, snhu let's you transfer up to 90 credits toward your bachelor's degree.

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good afternoon, every one at 2:00 p.m. in the east. we start with the major sell off on wall street welcome to "power lunch. stocks near the lows of the session. stocks down 800 points more than 3% earlier today now 2.76 the nasdaq off a whooping 5% or so down just about 5% or nearly 600 points check out the big tech first time we have seen technology getting crushed apple down about 6%. it's worse day since march. stocks that are holding up are like baker hughes and