good morning breaking market news asia selling off overnight european stocks trading higher right now. all of this comes ahead of the key u.s. jobs report we have complete team coverage of everything that matters to you and your money it is friday september 4, 2020 you are watching "worldwide exchange" on cnbc.

>> good morning. getting right to the top story you can see right now, the dow jones is implied higher by 225 points, nasdaq still showing relative weakness given the technology selloff we've seen. this is coming after that massive selloff from the major averages yesterday the dow closing down more than 800 points slightly off the lows. in this situation, they are all coming off their worst trading day since june 11. since monday, all are on track from weekly performances since june one sector snaps the heat. snapping the win streak when it lost nearly 14% apple saw its

worst day since the 20th losing that market cap, the largest loss of the biggest one-day record they lost more market cap just yesterday than the individual market caps of 470 of the s&p 500 companies. that is how much money was lost by apple microsoft, alphabet, tesla saw market caps sink by 10s of hundreds of dollars. you can see tesla lost millions. microsoft lost $115 billion.

august unemployment report is due out. expecting employers to have added another 1.3,000 jobs for the month. unemployment rate is down. that's a big deal. let's send it to julianna. we started with the latest in europe things have ticked higher. >> that's right. let's start with the asian stocks following wall street lower. down 1.1%. in hong kong, the tech heavy weights are down european markets opened on the

back foot as well. you've got a picture of how things stand we have green across the board the main benchmark did drop 4.4% and technology underperformed, important to know we are seeing strong appetite for european stocks this morning. let's look at the sectors. we have the most valuable parts performing best. banks are up auto is up travel and leisure and basic resources are up 1.2%. we have more appetite on the defensive parts of the story overall, markets are trading higher this morning.

>> we are hearing from some big name investors about a selloff the technology-led drop with a taste of what is to come if there is a shift of investor attitudes. >> caller: my gut feeling is that liquidity is strong and if it is not, this market could come down by a lot more. we could have another 10% fall if people stop thinking fundamentals >> joining me now, chief investment officer and member of association of african-american advisors chuck, you heard him speaking about what could be coming if attitudes shift. are we due to a deeper pull back in your opinion? >> yes

we agree on that we can't trade on fundamentals right now. this fall will be all about virus updates and vaccine updates if the market starts to get short, we'll see the biggest decline. >> what worries you the most about what you saw was it this notion that the leadership is showing signs of weakness and it could take everything down, how scared would you be or is this a situation of an otherwise pull back in the market as you probably know, september has been historically a

difficult month. it tends to get worse as the month goes on. so the end of the month gets worse. this is not just a one or two day pull back in front of the numbers later this morning and the long weekend if it is really beginning of something bigger, we could see 15 to 20% pull back. >> the market moves did something to alleviate the valuation pressures many have been harping about for weeks, if not months technology stocks and key ones are very extended in terms of their price to earnings ratios has yesterday's pull backs given you enough pull back to the value? >> it is still a small pull back when you look at the full range

of the increase of the market since the end of march yesterday's movement is not enough our view is that it is really two stock markets. there is technology communication and market where the earnings visibility going forward is probably pretty good and then there is the rest of the market they need to look at each part differently and invest differently. yesterday was not enough to say that it is even good valuations in the technology but a matter of how far extended it could be. >> some making the illusions of

how far it goes back things are slightly different these days with all of those things in mind, what is your in investment thesis right now, what do you buy and what do you stay away from given that notion you spoke about right now our view is that divesters are underdiversified that is great the past 11 or 12 years. they really have to look at diversification and probably should be adding bonds and even commodities and precious metals

like gold. we think it is two markets you've got to continue to be in technology because that's where we'll see the earnings those are down for the year still will see good demand >> thank you, sir. we appreciate it >> thank you, dom. coming up, the so-called stay-at-home stocks hit very hard yesterday the wfhetf down about 6% and down again this morning. the names you should watch coming up next as we head out to break, check out this morning's other top big market movers. you can see there, the

pre-mark pre-market laggards. you are watching "worldwide exchange" on cnbc. ♪ ♪ i keep working my way back to you, babe ♪ ♪ with a burning love inside ♪ yeah i'm working my way back to you, babe ♪ ♪ and the happiness that died

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>> good morning. that is a live shot of time

square if you are just waking up, check out what is happening with the futures. the dow jones implied higher by roughly 215 points, the s&p higher and the nasdaq now lower. the faang named this morning you might call this the epicenter of the selloff they are all indicated lower in the pre-market facebook half a percent, apple, netflix and google parent company. the only stock showing a marginal upside, amazon shares up .06%. other moves. the chip maker says a ramp up

would be later this year a possible sign the iphone could be delayed past the usual date and beyond the fifth of total revenues of apple alone. then you've got docusign as it continues to benefit from the work from home trends. shares are down after falling nearly 9% in the regular session. still that stock is up more than 200% so far this year. shares are down 8% pre-market. one bright spot today. the company's ceo will be on "squawk box. a must-watch interview one bright spot today, domo reported a smaller than expected

second quarter loss. also projecting third quarter sales. those shares are up 7% big winners were hit harder, i share edge momentum factor etf, a mouthful it fell more than 9% and broke a win streak with the worst performance since march 20 morning the active sectors, we have the sports betting stocks contessa brewer is here with more these were big gainers and they have been out sized losers so far in the last couple of days >> if you look at penn year to date up 110% and still positive for the week even though it got

walloped draft kings in spite of the losing hand yesterday. year to date, up almost 260% just unbelievable and going forward with a lot of momentum behind them. in part because of partnership news draft king announcing michael jordan was joining their board penn has made big news with bar stool sports and lowering their cost of acquiring new customers. there has been a lot of momentum mgm with a partnership of detroit lions that was down almost 3%. it has its hands in macau and

bricks and mortar and in sports betting and online casinos it didn't get hit as hard. a a and mentioning william hill, it made a big deal with creaeasars that is now the largest domestic casino company eye balling the games there and wrapped up a deal with cg technology which gives william hill more of a presence on the las vegas scene as well. these are stocks that have been riding on waves of good news dom, really feeling the demand of not having pentup sports and

other options. >> much like retail, the casino gaming industry is becoming more omni channel it is about the online digital component as well. i wonder what are the biggest headlines to get people in the door and back to some sort of normal the u.s. ceo of william hill told me that they are concerned about what happens when other entertainment starts opening up. for right now, there are no fans at the derby you can only see it on television and bet online if you want to get some sanction of being involved in the action what happens when you can go back to sports live and what happens when there are concerts

or you can go to the movies and go back to some sort of social night life at a bar, they are concerned about that they are concerned that this stimulus has come to an end. that there is a divide in washington that will leave people without the discretionary cash and then you've got unemployment that will leave people without their jobs. >> the latest on casino and sports betting coming up, we are watching shares of tesla after the 9% drop the stock dropping 20% since monday's closing bell. that means a lot to elon musk.

he has lost $9 billion worth of net worth just since yesterday we'll be right back after this break.

>> good morning. check out the futures picture after yesterday's tech fuel selloff on wall street we could be looking to get back

to 211 points if futures hold wti west texas up one half of a percent. brent crude 44.19. going to philip mena in the news room with the latest >> the election is now just 60 days away. joe biden travelled to kenosha and started off cameras. he sat down with jacob blake's family and talked on the phone with the family of the man who was shot seven time ntz back by a police officer

at a campaign stop in pennsylvania last night, president trump continued his push on the law and order message attacking biden as weak on crime and he suggested his supporters try to vote twice in the november election. that rally was held in a crowded hangar with little social distancing and few masks coming up on the show, how much does today's job's report matter to the market first, we check out the biggest nasdaq pre-market winners and losers docu sign trade in bigger losses from just yesterday. check out what has happened with the biggest pre-market winners at one point, moderna was the

only stock actually positive on the day. stay tuned to "worldwide exchange" on cnbc. >> announcer: today's big number, $220.5 billion that's how much market cap apple has shed since the high on tuesday. the value the tech giant has lostn e st ithla three days is bigger than the market cap of coca-cola, merck or at&t

breaking market news with a bounce back. asia selling off overnight with european stocks. all ahead of the key u.s. jobs report we have complete team coverage you are watching "worldwide exchange" on cnbc. welcome back, let's get straight to it. our top story. futures ahead of a three-day holiday weekend in celebration of labor day on monday are indicated higher right now

the dow up 222 points, s&p up by 21, and nasdaq weaker still at the opening bell looking at the context look at this chart on a year to date basis we are still up 28% even with that big selloff we've seen in the last 28 days by the way, that little line selloff is down 5% from the all-time highs we've seen just in the last week or so yes, big moves looking at the mobility-type stocks the momentum etf ticker is up 17% right now, year to date. low volatility is down 1% year

to date. we'll close that view to see whether that trend continues apple, probably one of the most important stocks to the market overall. certainly in the s&p 500 because it is the most valued market in america. apple has now lost about 12% from record highs. since the low here, a massive move higher. still up 63% keep apple in mind now let's go out to julianna tatelbaum in london with an update on european trade >> good morning. we'll tick off with what we saw in the asian session

it is a different story in europe let me take you to european markets. a sea of green for european markets. we did start the morning on the back foot with extended losses the benchmark dropped 1.4% we quickly reversed that trade we are seeing that quickly turn higher from the biggest tech selloff where might that money go. we'll see the biggest decline of stocks, one of the potential answers is europe. one of the more cyclical stocks, banks, auto and industrials performing best. some of that money coming into the market on the down side, food and bev, utilities and real estate. but overall, it is positive in europe >> thank you

have a nice weekend. focusing on unemployment today. forecasts are looking at a slump of job growth. 1.3,000 non-farm payroll expected to tick below 10% for the first time since march i wonder whether or not the data is going to continue to show that kind of strength or whether or not we do start to see a little pull back given the lockdowns and other things not in play but are starting to perk late and give a trajectory >> we are expecting to see things rise between 1.2 million. keeping the unemployment rate still elevated this is a continued step in the

right direction in terms of putting americans back to work what we saw yesterday, we are still talking about 10s tens of millions of americans that are jobless and still depending on unemployment that motion is still a distance prospect steps in the right direction but quite a ways to go before we can talk about a return to normal. >> the continuing number has always been important and a focus on the bigger unemployment rate and headline number we have played a lot more attention as and indicator for how soft the jobs picture is what can you tell us about whether that trend of elevated levels continues to stay that way and do we get back all the jobs we really lost? >> we are seeing a loss of

momentum indicating the number of americans still reliant on the benefit. there is still a disconnect allowing the economy to reopen there is a disconnect as we see cases rise in the midwest and hot spots in the west and southern regions we've seen a reversal of a lot of those policies that continue to pound the pressure of businesses in terms of hiring or rehiring the momentum starting to slow suggesting very ememic numbers >> they tended to be on the more volatile side involved hospitality and leisure, also construction, health care,

professional services. what will be the strong point for the jobs picture going forward and what could be a real laggard? >> that could be a really good question some of the hardest hit sectors has been service we saw this coming out very disappointing with employment up and below that break even level. continuing to transfer into that sector travel and leisure we could see a bounce in health care and that could likely translate to increased hiring if we do see americans put back into a position of employment. >> i don't hear it tossed around a lot but i am hearing it more that is the word stagflation

are we worried about the inflation picture? we know the fed is not exactly worried but still it is perk lating in other places should we be worried about inflation right now? >> the fed is certainly not concerned about inflation at this point, the fed looking at the most recent comments we've been unable to reach that 2% target for the better part of the decade at this point, they are keeping rates low and providing neutral policy and stimulating policy to prop up growth and price at this point with inflation well below that 2% target, the fed has no concern about rapidly rising prices. even if we did see those things

rise, they are allowing those prices to run hot. looking at a longer term average of prices. inflation has been running well below 2% for that better part of the past decade. >> we often focus on headline nominal interest levels. 10-year yields, 30-year long bond one thing we don't see much of is the real yield. if you inflate and adjust some is of those rates, we are negative right now the idea that real interest rates are negative >> i think this is going to be a new normal we've seen nothing but down turn momentum these are going to be stuck at

the zero bound for the foreseeable future. which has been flowing into equities >> always great to hear your thoughts good luck with the jobs report today. coming up, the stimulus debate continues with no signs of a breakthrough. a live report of what investors need to know check out some of this morning's biggest pre-market movers in the dow. financials are in focus, jp morgan chase higher. boeing higher as well. as for the dow pre-market

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good morning check out what's happening with the futures after esterday's tech selloff on wall street. the dow went up higher

the s&p implied higher by 22 and the nasdaq still lower by about 12 points. the biggest nasdaq losers this morning, docusign, zoom, nvidia and tesla. those names have been very, very volatile on the upside lululemon is on that list too. the cooper companies reporting third quarter profits forecasting lower sales as the covid-19 him use of their product. shares of contact lenses, tests and more are up higher smith and wesson's firearm

brand. the current increase is unparalleled their stock up more than 150% this year. keep an eye on that gun maker. yum china plans to start its stock listing roughly $3 a share and implies a total deal size of a total $2.2 billion it is expected to start twrading on the hong kong exchange and those shares are up on the pre-market trade coming up, a bit of a bounce back, technology stocks remain under pressure investors ask what they should do with their money today. that's coming up next. first, some of the often talked about stay-at-home stocks hit hard yesterday slack, netflix, zoom, peloton,

docusign all implied lower this morning. as a reminder, you can watch or listen to us live tonhe cnbc app. stay tuned here on cnbc.

welcome back the dow possibly opened higher nasdaq employed lower by about 9 points as well the dow jones lost about 807, 808 points if we got back about 40 of those points but still a ways to go. despite the selloff talk we've been putting out there, that is just 5% below record levels we saw just this week

>> joining me now, head of citi personal wealth management if you were new to the market, you probably never thought the market could go down, it does go down does it not? >> it does it is prove that stocks do not always go up i think this is most likely profit taking. since august, we have seen a really strong run. that tells me investors are optimistic and taking profits on high flying technology names that doesn't tell me this is the bear market or anything like

that some of those now justified and why is this a pull back. sort of acted like the market that helped with antibodies at a risk the federal reserve on its balance sheet that helps limit the down side. hearing fed speakers say that they think the federal reserve might need to take more actions

in the coming months they don't want to appear political. if they do see a sharp selloff, you'll see the fed come in faster >> there has been a narrative over the last several months about this notion that the economy is not the stock market and the stock market is not the economy. we can say the stock market is a discounting mechanism. it takes into account the futures and puts a price tag on them today the economies should be doing better six months than it is from now should we be worried that it is telling us the economy may be following suit soon. i don't think so there are reasons i don't believe that one, you look at the surprise index that tracks those missing

expectations they are doing quite well. we've seen durable goods data. actually tracking shy of 30% annualized that doesn't get us back to where we were in 2019 but we've seen a stronger than expected recovery. we'll get the august jobs report sitting at 2.1 million i would not be surprised as well to see a better than expected read today what is your investment strategy >> we are telling them three things, you may want to average in and take a risk out of moving in the market. you'll use structure and

investment we like the industrial space and europe in particular and globally and we'll probably recover through the economy. >> talk washington, d.c. and more of what you should know the white house and congressional leaders are staring down the deadline at the end of the month back from another shutdown

i can't believe a midst all of this, that shouldn't surprise me now there is a shutdown to play. >> the question is how they should avoid it on a few parts of the issues with democrats saying they do not want to combine with that package aid. confirming house speaker pelosi discussed that with the secretary in a phone call on tuesday. what remains unclear is that both sides remain clear on the strategy going forward the white house and the republicans in the senate believe these two items sho uld be separate.

if something isn't attached to that, that is the mess at at all. it is hard to see how they could meet in the middle if there isn't an exploding headline. democrats originally passed a $3.4 trillion bill but the speaker says they would agree to come down to $2.2 trillion now expected to flow a $500 billion package next week that is a set of core programs that have bipartisan support. you can see there is more than a trillion dollars in ground to make up. at least we know this is the one democrats are working toward last night on air force one, he did say he's making progress

>> are we to believe there is no real negotiation in play putting together the comprehensive package or could we see a package report at some time even though neither side said that's what they want to do >> that is really hard to say. saying democrats back the stand alone bill would be open past september 30th getting to the september open the white house secretary said she believes they are confident they'll avoid a government

shutdown she didn't mention how they would get there. finding out exactly where republicans are and whether they are comfortable with the pelosi plan in the house. there is a view from republicans if they can't get their smaller package funded, it might not get across the finish line as well >> thank you for keeping us up to speed have a nice weekend. a final check on the markets this morning the dow lost 807 points. we could be posed to get back almost 300 points. the s&p implied higher by 28 points and s&p higher been 19 points over two days keep an eye on all of those

megacap stocks what is happening with europe, we are positive there, oil prices moving higher as well keep an eye on all of that green. that does it on "worldwide exchange." "squawk box" is up next. we were one of the first stations to pilot a fleet of electric vehicles. we're striving to deliver a package with zero emissions into the air. i feel really proud of the impact that has on the environment. we have two daughters and i want to do everything i can to protect the environment so hopefully they can have a great future. ♪ if i could, baby i'd ♪ how can i, when you won't take it from me ♪

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a selloff, a pull back and old fashioned profit taking. those are a few of the ways to pull back on the dow 5% cut on the nasdaq we'll walk you through that and what you should do next. futures pointing to the rebond for the dow. we'll have a rundown of the recent movers.

and the august job's number. we'll get you ready for that and shed some light on the pace of the economic recovery in america. good morning welcome to "squawk box." i'm becky quick along with mike santoli and brian sullivan we had a huge selloff yesterday. coming off the worst trading day. yesterday, the dow losing 800 points the dow was the best performer down just 2.8% the s&p down by 3.5% nasdaq off 5%. that i