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when the selling is resuming for a weekend there nasdaq lost 11k. it is the worst two days they are trying to get 3400 back as the fns or week. let's check in with bob pissani and get a since of what you think is going on. >> what was interesting is we were drifting lower going into the nonfar payrollm payrolls there is tech to the downside. right across the board industrials are a little weak. energy is better and bank stocks are up as we have seen the yield curve steepenning. a lot of pressure in the middle of the day the stocks in the last several days, he would have gone on a up

and down in the last five or six days and i will show you a couple examples of that. these are all stocks that have been extremely frothy in the last 60 trading days docusign had excellent numbers and very positive commentary overall. so what happens next in a correction when you get big frothy run-ups you can overshoot. nvidia when from 505 to 580. all of the way down to 580 you can see it is slipping below that level that had six or seven trading sessions you get blow off top that's are really frothy on the upside. so they have overshoot and go

where they have run ups. i love what he did in his comment, it is very true two kinds of traders in the market right now it was fundamentally based traders out there. they are the ones that say the economy matters the most then they are the liquidity based traders. the fed liquidity people, that is what matters most, the stimulus, economy, and reopening is number two after that the market has been dominated by those that believe that the stimulus is the most important thing that is out there. if you focus on fundamentals more, maybe these stocks have run up way too much and that is what i think is going on here. in the meantime, just remember something. put this in context. with all of the sell offs that we have been seeing, look at these moves for the year

we were horrified yesterday when we saw 3% and 4% moves keep the whole thing in context and you have to tell everyone what is going on even those not associates have been amazing everything is up 30% master card and visa are all up double digits for the year we know everything gets compressed now >> i can't help but notice that we have not lost the august gains yet. same individually for apple. tesla, amazon, other names even just august we have not lost yet >> yeah, the s&p is where it was eight days ago essentially

and this is what i mean by the blow off tops. and i think that people just need to keep that in some kind of perspective and see what is going on with the overall markets right now. it has been a remarkable turn around we're back to the old highs. i would not fwhaet this bet thas where we were yesterday. bob, the world has very few real growth stocks and we're going to pay up for it, and valuation doesn't really matter. and as we go back to yesterday, those are the people that think bob, we have liquidity, stimulus, and everything else is not so important i agree, okay, they're over valued i agree they're crazy on some of the stocks, but that's the way the market is now. it is a liquidity driven market. if the world stops believing that, that the market is not so

important as a fundamental driven market, then you can have problem with the valuations of some of these. this makes perfect sense suddenly the world is deciding that the valuations of these things, seriously, if you look at the fundamentals does it matter yes, it does you twist it in your head a little bit and you say liquidity is not everything. maybe fundamentals are more important than looks at real things like future earnings expectations >> for now the emperor's new stock portfolio looks good though, bob. >> you have kudlow and bloom berg saying that softbank is what they're calling the snast dak whale that got this boat load of u.s. equity derivatives.

suddenly you're going to find out that a stiplus deal becomes very, very important so the answer is if the market continues to move down, they care and you will see more stimulus talk next week. this is extremely interesting to me we have been noting here all of us a notable increase in options and futures trading in the last several months most of us have been attributing this partly, largely, to retail trading. if there was very large positions being taken by other traders like soft bank, for example, on the margins people taking very large positions in options, particularly call options, that at the margin can

have an effect of frothiness and add a little more to the market. i think it is extremely interesting and we should take a look at that >> we will look for others to match that reporting thank you for watching us start the power. apple is watching the interday low of 110 touching that would be the first time since then. the street is just getting lady on apple and joins us to explain. >> thank you for having me long term i would say it is trying to help investors figure out how they play year after

year and they have positions for the 5g cycle, and what we learned, and what is in the reportings is that their consumers have been very strong. it is they are v not lost that much power they spent less on travel and restaurants. and i think that is the set up as the new product cycles, it is being launched on 4g and 5g phones, and what we're hearing is they're preparing for it to be launched. so you can ask me why why it

stands today, i think it is all of these stocks, we have a neutral beyond there and it is purgly valuation >> so the sell off that we have seen since tuesday reflects more momentum unwinding or a better real estate or some of the risks going into the 5rksg cycle risks about volume risk if they try to make it up and the kinds of things we have been hearing from other downgrades lately >> i think it is very specific to apple i think the sell off is broader and vague. the networking equipment, and we're seeing it drying out

and they guided to the next spot the expectations of where. and it is a wake up call for reminding that this environment there are a lot of projects and investments to go through. so they all reacted to that. apple is relatively exposed to that race. it is across the consumer business and it is like a fwhaz is very aware. i don't think they have it so far. i think that are not expecting a 5g cycle making the 5g is very expensive. and it is based in a fully fledged 5g capable

the vast majority of that going, and the new services for 5g. >> so pierre, i add hire your bold calls on apple over the years when so few people were willing to say sell here or buy there. you made calls on both sides of it some people argue that it is a growth stock some people are probably using it in place of the bonds so many people feel like they have to own apple. is it as much about the fundamentals of the company any more >> yeah, yeah i think that -- thanks for pointing it out having a conviction on that that you can return an actionable opportunity for my clients is

very difficult it is far less related to moving the business and how the business is doing. having like the perspective on the evaluations, it is very difficult. so we have been fairly neutral in that for some time. and kind of waiting to see how you know -- the ways the sets of names evolve so that we can put some of those back but today as you see we have been very positive on the 5g cycle. and we recommend the valuations. so it is a great situation >> all right let's turn to tesla now. it is having trouble again today along with much of the rest of the market shares down more than 5.5%

20% since tuesday. what is your feels about tesla i know you think that elon musk has those, but you think he will still do really well >> yes so if you look at tesla today. things that i believe in, they have like unique performance they are like an innovation machine on this technology and in addition to that they have like the best in the market i think it will be in five years

from now, we have twice bet on modellings and that is where it sends, i think 2500, maybe $3,000 >> why is it worth that? even if it is that, doesn't that have to be so much more whether or not in terms of batteries or selling it's core technology to other car companies to justify the valuation where it is now? >> exactly on top of that you have an energy story, the insurance that can be potentially very tangible and then you have an opportunity for full self driving, but all of the things that can start being invisible. so i'm not keen to buy these things today i think it is not a good year.

so if i have like last week, a stock price. $400 or $450, that is reasonable, but that means it does nothing for the next five years. in five years from now we have an idea of what lies beyond tesla. but today think about each of these opportunities as being a unique starter insurance is good. tesla, let's say you value them, $20 billion, it is a lot of money. okay they are being very generous that would represent a relatively small part. so i think that today i recommend my clients to buy it

on the opportunity and it is time to take a step back and wait and that is what i am recommending today i think it makes a lot of sense. >> right, so you're getting a car and a herd of unicorns at the same time. >> exactly, you get it yes. >> all right, thank you very much still more ahead, early facebook and google investor will waigeih in and tell us why he dumped half of his stake in apple stock.

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>> the jobs number for august getting lost in the shuffle of this friday sell off it is worth going into some of the internals. let's go to steve leishman >> the jobs report is made up of two different surveys. one says the pace is quickenning, the other saying it is slowing payroll is up 1.37 million that is right around the estimate but the slowest of the recovery so far. unemployment dipping more than expectations 8.4% compared to 9.8%.

the participation rate is ticking up, they declined with more people coming into the workforce. they write that although the pace of job growth was slower this month, compared with recent months the breadth compared in august one disappointment was government that was responsible for 340,000 of the jobs. the private sector was only a million. that is a lot of census jobs in there. l leisure and hospitality, temporary health also up along with education and health as doctor's offices and some schools reopen there is also hits of what people worry about the number of permanent layoffs rose by more than half a million. if the rise continues to take

hold, this will have a market impact so what survey has it right? over time will they attempt to converge when they go their separate ways. the survey also showed the number of tele on workers falling and 24 million people could not go to work because their business was closed due to the pandemic these people can go back to work >> meanwhile, stocks came down to earth yesterday chips got an extra dip and the 8% drop in apple was a turn over that we have not seen in quite awhile we are assessing the tech damage from thursday's melt down. >> john, it had to happen. that is what some are saying this morning about that tech

selloff that we're seeing here they point out that is a powerful move that we saw in the nasdaq that surged nearly 80% off of the lows. the high flying cloud stocks getting a hit. check out the etf that tracks the sector again here nap is after yesterday when it suffered it's worst day since march notable names that took a tumble was zoom, box, and twilio. keep in mind the context the stocks are up triple digits. then there are the chips the smh. now on track to break a five-week winning streak some of the hardest hit were names like nvidia and amd. all four down again today and invid kwla ya going for it's

worst two-day stretch since march. they say valuation after such strong run social security a concern for chip investors to think about as is the election and what they could mean for u.s. and china dynamics. and take a look at apple down in today's trade. the worst day since march. now below that $2 trillion market cap again after a monster move with a stock up about 40% in just the past three months alone. they told their clients that tim co cooke's company is still their top 5g play. that is a nice set up for our next guest roger is back with us on why he saw this coming. roger, great to see you again. >> great to see you, carl. >> i was just looking at a tweet you wrote on the day you were on

tuesday of last week when you talked about trimming, that you had trimmed nearly all of your 20 or so tech holdings you said, you know, if i were magically frozen in tbills for the next few years, that's okay. >> carl, i'm not going to claim any kind of crystal ball here. i think the core issue that i shared with you is that at my age, with my outlook in terms of willingness to try to work hard to earn back anything i lose, didn't want to take a huge amount of risk what i perceived was going on in the market was a speculative blow off i believe that apple was just barely blow where it was when i made those sales and again, it wasn't over fundamentals, it was simply because for me, it felt like the

risk was too high and i would rather have dead money in t bills while things sort out. and i could easily be wrong and the stocks could come roars back and go to new highs. the market has been so kind to me this year i look at what is going on in terms of fundamentals. we do not have control of the pandemic and we have harmed our relationship with china. and i watch what is going on in terms of the legs and the likelihood that almost no matter what we'll see huer taxes next year, more regulation of tech, and all of those things to me represent markets i was not willing to stick by for. >> we have not and probably won't get to talking about the doj reported anticipated move on

google >> i do wonder, though, as we're talking the wall street adjourn is matching this ft story that argues it was softbank buying all of those derivatives how would you characterize the risk of what they're calling a nasdaq whale being a very large catalyst for what we have seen so far >> one of the things, when you get the kind of momentum driven market, very small changes in the emotional state of investors can produce huge changes if it is true, and let's just assume it is true, that soft bank was playing these games in the market, someone will get hurt from that and i just didn't want it to be me and when i'm speaking to our audience, i'm saying that each

person gets to look at their own situation. mine is different from probably many of your viewers and the thing that i look at is that if it is true that soft bank was doing that that would be one more sign that the fundamental picture here is decoupled from stock prices. but for anyway risk reward was incredibly unattractive. and i think as investors look they have to skf themselves how much is enough and what do i think is going on. if we look at yesterday's move on facebook investors have benefitted from facebook not addressing the issues undermining our pandemic responses and our election and yet the pressure on them to do something is increasing and the only way to fix those problems is to reduce the profitability of that business i don't think investors would be

the driver of it but they're going to have a voice. >> no welcome i guess what you're saying about facebook and the pressure on them and what you believe they need to do. what i think is so unique about your point of view with the market doing what it is right now is that on the investor psychology side, very few talk about when they will sell. i wonder if you can talk for a moment about how you decide when you're going to sell and how much it's not bianary >> we have been talking about things going on in the economy that were really desht trump's focus on nationalism as opposed to globalism would lead to lower output.

there is no way in the transition that the world can produce as much stuff as it does when everybody works in a coordinated fashion. the question is when would that hit stock prices and what surprises me is that i hung in as long as i did at the end of the day historically, you know, early on i was terrible at market timing and i'm still not very good at it but i know that i have gotten really good at assessing my own risk profile i look at what was going on in the last three months and it was such a ride and you know i was such a huge bull in apple as a stock. i was long a lot of things that were working very, very well when i decided to make the move there was still no obvious

trigger. they were up on the gigantic spices it struck me that the almost near certainty of higher taxes next year and greater regulation was for tech stocks going to, in the next few months, produce the trigger i needed maybe i would lose 20% of the joup side, but i decided this was okay for me. i just didn't want to wind up as bacon. >> let me throw you a curve ball and it has to do with enterprise stocks last week we had on pagerduty. a number of other companies out there that have not yet gone public that are in the space, and i think there is an interesting thing where inves r investors don't understand what it is. and maybe there is a valuation

mismatch happening here. >> i think that is entirely possible my long term hypothesis is that we will see a shift from essentially absolute centralization, everything in the cloud, back towards more things being distributed technology is normally a pendulum and we have been stuck on centralized for a long period of time. they made that a really compelling thing, but four corporation that's are really significant benefits from distributing some things and the folks that will play a role in that it is different than what sas does and what the other elements of enterprise software are doing. i agree with you that there is enough opportunity there i don't want to comment on too

many of the companies, but i know that we're due for a shift and happenle has been really driving that and i think it is one of the things that if you will you have not had other plays in so when other companies come public that allow corporations to manage their services without so much central gags, so they get more security, they get more privacy. that will be a good thing. and you know, the saming of that i'm not so clear on. but you know, you see the whole issue with facebook relative to it's internal software meaning when there is a. >> speaking of facebook, roger, one final question on the

communications that zuckerberg has given. you wrote the book on zuckerberg, about no new political ads. today axios saying that he thinks there is potential for what he called social unrest between the the vote and the result we're trying to make sure that is not organized you give him credit >> no, and i don't think anyone should i think that facebook is really good at public relations and that is what this is justin he nee justin heindricks at the new york media group put out something that really nailed it. that sectly it wondly it was esy not solving the problem.

just saying you can't do a new ad in the last week it not going to prevent ads from happening. and it doesn't people from lying in ads that is the core issue and the third point is that facebook is not looking to solve the corp problem but to avoi spoint for the outcome think about this they will be a small part of what is wrong trying to sbesh fear with the election process or the aftermath. and we're we're worried about a cast on the process. they were not even touched by what mark said his system is how mat lish sh

militias organize. i look at this and i say i don't know where he plans to live, but at facebook i would be really worried about that the actively edge couraging of violence, that is just that should scare everybody >> roger, that topic, that story, will continue to evolve we appreciate your thoughts going into a dramatic selling period >> speaking of facebook, more in that category. massive gains since the start of the year julia explains what is going on this week. they but today they continued

the decline that we saw last year shares falling today but worth noting that the stock is still up 35% year to date. the company shrugged off concerns and shown it's strength with small businesses. 82% of analysts had a buy rating ahead of yesterday's sell off. that stock is still up about 22% this year, and pinterest, the bigger loser yesterday, it fell the most it was down about 5.5% it is still up 82% year to date. snap faired the best, but today it is off nearly 34% and 61% of analysts have a bye

rating rating and 34% with a hold rates on snap the company's opportunity to diverse if i their ad businesses saying the declines after meaningful gains are profit taking >> they are talking at some of their best ideas, happy friday, guys, good to see you. >> nice to see you >> has any of the selling wetted your appetite? >> i think the main thing, carl, was that a lot of these stocks were stretched like a rubber band way above their moving averages very high in relationship to the value of the business and they're in the process of correcting and this is the way the market works

i think they approaching what they call rational buy points right now with apple and google being the most attractive in the group. i think facebook and amazon have a way to go, but you know i think the thing that hangs over the stocks is the possibility that any trust -- and if you were to break up google and in particular it's very, very clear to me the parts would be worth more than the whole. i think that is possible for amazon we're getting to a point where we could have a good buying opportunity. it suggests that one should wait until the dust clears a little bit. >> david, how do we know when that has happened. >> it is hard to take your

temperature every moment of the day. and carl as you know i'm in the venture capital business we tend to think much more long term, buy and hold as opposed to buy and trade. we focus more on the ipo market and the degree to which the windows are opening and closing on one hand and the degrees to which the market can efficiently price the market >> larry, i am looking at tech stocks and we talk a lot about some of the big ones with amazing runs year to date and over the last 12 months. there are names in categories that have not had big runs chip equipment or some semi conductor names, it is down still about 1.5% same with nxp, analog devices, so when the market turns down like this, is it time to look at

stocks that have not had a major run. and see if you can find some value? >> i have always found these things were a difficult game to play because i spent a lot of time in boston, play all of your games boston gardens you have economic and market cycles but you also have capital cycles and very rarely do the companies have a situation where demand is balanced it is going one way or another and they expand capacity at the drop of a hat. so you can have supply problems, you can have demand problems and it is just a very, very difficult art. i think it is easier to make money in situations that are less from a capital cycle point of view than the semi conductor areas. so i stay away from them

>> you're seeing as an early stage investor what is happening beneath the surfaces changes the clouds and the way they're operating. who is benefits and who will we see coming out of this and coming public in a year, two, or three stronger than they would have otherwise >> it is real a tale of two cities in our portfolio, and we sae certainly could not have predicted this in march, one of our investments is a company called policy genius if is an online marketplace, and with people home and thinking about their own mortality or thinking about the value of their possessions, we saw the demand for policy genius products go off of the charts.

we have acompany that is in th business, a company called bloomskap thbloo bloomskap thbloo bloomscape but people sitting at home looking around their living and bedrooms decided to buy plants they essentially hit their year targets by june. it was extraordinary the other extreme we have a company called mint house in the hospitality space and their bookings literally went to zero in two weeks and they had to pivot very quickly occupancy is now back to the mid 80%. it took partnerships with municipalities, accommodations for first responders and health care workers so i think the companies that can benefit from remote learning, from working from home, hospitality more tailored to nervous business travelers, things like that, they have a

better chance of coming out of a pandemic ahead of the game rather than behind it. finally, larry, i wonder what your thought process is right now on media we have a bunch of theaters opening this weekend tenet on the way trailers for the new bond film, are you seeing some value in media ahead of the reopening >> i think in the consumer discretionary area, which is my dealing with media centric is people are under estimates how many dollars are availability to spend. people have not been able to spend on movies, they have not been able to spend on restaurants. they have not been able to spend on anything. and i think just if anything is hal halfway good, it will be very,

very successful. i think there is nothing wrong with the demand for entertainment. we're going to have a new video game cycle and i think there will be tremendous excitement and there will be tremendous es ka ration because of the consumer oriented technology to energize the consumer. so once we get to november and these things are out we'll have tremendous demand for entertainment. the question with the theaters is how fast can they fill up the seats and that's the question with the vaccine so i think that the area that is the most interesting right now is video games but i think all of the entertainment companies the market will give them a hall

pass because we're probably 60 to 100 days away i think, almost regardless of the valuation. >> thank you, we look forward to talking to you again soon. >> thank you >> we just talked a lot about moving bits. transports sings again as it ups and fedexfalling 3% and 5% respectively some of the declines are profit taking gaining nearly 3% in the last three months. the big carriers have experienced holiday level volumes.

but states being ready to develop a vaccine by november 1st could be the end of this ecommerce explosion. it is really a double edged sword. delivering to consumers is a third less profitable than business to business shipping. another trend to watch is the surge and the surge charkt impact they have placed big fees. macy's and williams-sonoma said the pricing is higher and the speed is slower. best buy is using some employees to make deliveries there is also a growing sentiment on wall street that spending could shift from goods to services saying the performance of the airline and the cruise stocks on tuesday online spending is actually falling 3% from q 3 to q 4 and that is certainly a trend to

watch. back over to you >> yes, frank, now let's get to rick santelli for the santelli exchange rick >> thank you, john i would like to welcome ed lazier thank you for joining me on another jobs friday and quickly so sum mmarizesummarize, about o the 1.37 million jobs created were private sector. and the household survey blew up what did you 1993 this report, ed >> i see this as an almost perfect report it is actually quite surprising to have such general employment growth that is continued at this point in the recovery. so if you think about it, rick, we had about 2.5 million jobs created in the past two or three months this month is slower than some of the earlier months, but it is still close to 1.5 million jobs

that is excellent. it will be general health in the labor market hours of work are growing by one tenth of an hour and then the other thing that doesn't come out in the jobs day report that i look at is you know the churn, which you get through jolts. so if you look at jolts, it is a very active labor market we had 6.87 million hires. the other final point that i would make, it cuts through all of the stuff, the discouraged workers, who is forked to work territorially. so it is now at 56.5%.

we're going to need to it get to be there, but boy, the trends are just great, it is really quite amazing to see this at this point it's up four months in a row after the lows were established in march let's move ahead a bit there's a will the of issues in the news china, for example are they going to fore sake treasuries it's out there my answer is it's the most profitable position they ever had in their portfolio your thoughts. >> i doubt they would do that. we did a study to see what would happen if china dumped all of their treasuries it was smaller position than it

was now. it cost about 30 basis points. surprisingly only 30 basis points the reason is the market for u.s. treasuries is extremely thick. that means that the prices, rates are not going to vary all that much. i agree with you i just don't see that as something in the near future it would be pretty dramatic move on their part and it would be cutting off their nose to spite their face >> debt to gdp up over 100%. your thoughts. >> i don't focus on the debt i focus on the spending side the reason is debt is between spending and taxes you can cut the debt by raising taxes dramatically if you're spending lot of money, that's not going to help the

economy. what we have to worry about is long term spending now, obviously i'm with you. we worry about something like what we seen right now in terms of dramatic increases and spending the important point to remember is this is a one off deal. we hope it's a one off deal. t not a change in the trajectory of spending. the most dangerous effect of spending on growth rates is when you have a training in the trajectory that's when the spending growth rate goes up and continues to % ggo up in the nearby future. this is a shift in the curve not great. not something we want to see.

>> excellent always interesting to hear your thoughts i look forward to talking do you again next first friday of the month. have a great long weekend. carl, back to you. >> thank you >> all right we'll talk to you later. we are off of session lows soc some of these momentum names try to make a stand. >> they are trying to make a stand. the nasdaq is trying to make stand. trying to balance off its 50-ta moving average you look at the sectors that are the most impacted oi eed over tt two days of trading, it's been the real winners it's been technology, consumer discretionary and what's happening overall with the communication services zoom video, docusign and sales force have become indicative of that momentum trade in the past several months since the pandemic lows. look at those drops here

the ones that are the more out sized ones all very much higher on a year to date basis. in the case of zoom, 432% gains. let's take a look elsewhere in the market as well because it's been the megacap tech names that have been the real driving force behind it. they carry the most weight. we want the make sure the sectors are the one people look to as being the real leaders technology, semiconductors, software within technology technology overall has been a real driving force behind that trade. a lot of positive momentum you can see here going into the last couple of days and that move lower it seems localized right now we aren't seeing a lot of movement in other parts of the

market that you would suspect would be going down in times of risk aversion. we're not seeing as much risk aversion there it seems localized to what's happening with big cap and megacap technology i'll send things back over the you. >> thanks with the s&p down nearly 2%, nasdaq down 2.5 we'll take a quick commercial break. more on the sell off straight ahead.

we are going to close this hour with chips.

mixed picture, broad comms in the green. nvidia, amd in the red i look at some of the equipment names that haven't done so well. what do you do here? >> you have to wait a bit. we are only at levels we saw two weeks ago. it's not too terrible. we saw a huge move in the stocks over the last couple of weeks. it's veresetting. i would wait a month or so september 15 we're supposed to expect an announcement with the department of commerce in terms of new restrictions on china i think people are getting skiddish about the election. you get to the end of october, you want to start buying

you start buying in about 30 days or so >> what about the people who make the stuff that the people who make the chips need to make the chips. is it time to go that far back in the pipeline? >> it doesn't cater to the guys who design the chip. i think that's the best way to do it. these are companies that are able to grow revenue during the '08-'09 recession. in terms of the semicap stock guy, i think it's the best game in town. the reason why you want to be long is it's a monopoly. even if you have or prior to the monopoly, you know the -- there's the weight of eight high end chips.

>> good insight. thank you. >> thank you >> carl, as we get towards noon, major indices still lower. >> s&p is trying to get 3400 back let's get back to headquarters with domino in the half. thanks very much welcome to "the halftime report." another big sell off on the street after yesterday's massive market meltdown. having investors become too complacent or is this pull back part of a healthy correction and what's next for those big tech names that have been carrying this market. we're talking of apple, microsoft, amazon, alphabet, facebook and we'll put tesla in that mix as well we will debate that with our investment committee they are, today,