>> the last couple days i thought i heard very faint wind chime and ways losing it or something. and now i realize what is. you're in your yard there. >> they're right over there. we have -- we have incense burning, it's very nice. >> i'll be there in a half hour. >> see you tomorrow. >> thank you for watching "power lunch. "closing bell" starts right now. >> thank you very much, kelly and team welcome to "closing bell." i'm sara eisen along with wilfred frost. the september swoon is raging as we begin a new trading week on wall street. stocks falling sharply the s&p 500 briefly going negative for the year. on a jam packed day of news. let's look what the is driving the action one hour left of trade coronavirus concerns are growing in the u.s. and abroad the united states is quickly approaching 200,000 covid-19 deaths and the uk reportedly considering a fresh lockdown to slow the spread there. supreme court ruth bader

ginsburg made the political picture in washington significantly more complicated with some analysts saying the odds of another round of stimulus before the election falling sharply. bank stocks are getting crushed today as well amid new report about major firms dealing in suspicious funds we'll have more on that in just a bit. we have 59 munz left left to goy volatile session still make for the worst day in a while. >> percentage terms, we're down 2.2% as we stand ahead will be all over the selloff in the final hour of trade. billionaire investor mike novogratz will join us with his take on today's plunge and whether he is buying any of the dips after three straight lease losing weeks and we'll speak with john kerry in an exclusive interview. we'll get his take on the supreme court, on stimulus, on the election and that final month run in of campaigning which, of course, he knows so much about let's focus in on the big stories we're watching on a very busy day of news

mike san toll toli is tracking e selloff. meg has the latest comments on the coronavirus from the head of operation warp speed and sara has details on the increasingly complicated tiktok negotiations. mike, let's start with you >> yeah, wilf, a broadening out of the pullback. a catch down from the old economy names. starting to look more like a comprehensive flush as opposed to localized profit taking shakeout in the overheated tech names. significant numbers to point out. this is a three year chart on the s&p 500. i got for a reason here. we got essentially down today to a 9.9% loss off the recent record high. i'm going go on a limb and say that's not random chance people thought maybe that is enough for now to buy at that minus 10% level. also, sara mentioned, we went flat for the year at that point.

it is the level we were at june 8th. we had that decent sized peak right here when we got excited about the reopening and all the rest of it i want to point out this one right here that is the january 2018 peak. a potential mental model you have the very, very dramatic sharp up and down peak from an all time high. you went down roughly 10%, maybe a little more than that then it takes a while swinging back and forth. that is an optimistic scenario for how thing goes right here. i want to also look at the subsegments. dow versus nasdaq 100. versus the equally weighted index. this is quarter to date. we're all in line again here the nasdaq kind of went crazy through august it's come back into alignment, at least on a three month look back or 2 1/2 months to the rest of the market. so again, it's a little more of a recalibration. and maybe there was some very loosely held convictions about the cyclical trade which, of course, is contingent on fiscal support, perhaps, on the flow of

the data as opposed to just on sentiment and fund flows the way that growth stocks can just keep going up and get revalued higher even without new news. guys >> mike, a lot of talk about headlines coming out of europe and the uk specifically and the potential for further lockdowns. it's not like the data sud lyn got a lot worse out of europe. we've been talking about those possibilities for the last week or two do you think it's that news that is really weighing us down today or more broad market technicals and continuing september swoon as we said >> i think news is in the category of it doesn't happen. if peopleare trying to materialize their general concern about the wabbliness of the market, it makes sense to grasp at that it's an overlay of worry for the fall anticipad wunterin. you sea the weakness on the atlantic i don't know that is about the covid-19 spike and did mention that the week

after the september kind of derivativ derivatives expiration, typically very weak. a little loss of conviction about the pacing of the reopening and the recovery is fair to isolate. >> yeah. you see stock like carnival down 6.5% certainly the scare is out there about potential lockdowns or at least more cases mike, thanks let's get the latest in washington now the death of supreme court justice ruth bader ginsburg may impact the odds of another round of sim lus atimulus and a govert shutdown lawmakers prepare for a messy fight to fill her seat we have the latest from washington >> there are multiple wrenches being thrown into washington's gears increasing polarization ahead of this bitter supreme court battle it's complicating negotiations and packing the calendar ahead of the election. talk on stimulus has all but slowed entirely to a halt. lawmakers look to avoid a

government shutdown. we expect senate majority leader mitch mcconnell and chuck schumer to address the issues momentarily from the senate floor. earlier today mcconnell and chuck grassley, the top republican on the senate banking committee, have attacked the democrats funding proposal they say the bill was hog wash and suggested he and another senator would fight it now speaker pelosi said she would use every arrow in her quiver to stall the process. perhaps removing a key gop priority from that bill is one tactic they're just 12 working days in the senate before the election, six weeks away and condensing a supreme court nomination from the average 7 0070 day time frame will take bandwidth from both chambers there is some glimmers of stand alone stimulus efforts for ppp or for airlines. as of right now, both of those

are absent a catalyst. >> thank you so much for that. we'll be discussing all the implications of the market a little later the head of the administration's operation warp speed speaking out in a rare interview earlier on cnbc. meg has thant vit interview andn us with the highlights. >> they're pretty close to knowing whether a vaccine for covid-19 will work and giving us a time lun to get there. in the meantime, of course, fears are increasing around the case counts we're seeing out of europe and concerns that will will lead to potentially new lockdowns. take a look at this graph of new daily cases out of some of the major countries in europe. orange there is france green is spain purple is the uk just in the last two weeks, france and spain adding something like a quarter of their total cases just in the last 14 days the uk raising the threat level for the coronavirus to a 4 from 3 meaning that trans mission is

high or rising there cases are doubling roughly every seven days leading to new fears over potential new restrictions meanwhile, guys, vaccine development is advancing quickly. we heard from the doctor this morning. he expects to get data on whether the leading vaccines work some time between october and january. he said if we hit that time line, here's how he is looking at the availability of a vaccine. >> if approval is granted around that time, our authorization we may be able, for instance, to immunize the most susceptible populations in the u.s. by december of 2020 most of the elderly population and first line workers in january of 2021, and the rest of the u.s. population progressively in the month of february, march, and april >> that's if these vaccines prove to work which we should know over the next couple months back to you. >> meg, just going back to some

of the numbers coming out of europe if we use the uk as an example. is there a sense that we're seeing the uk is willing to be preemptive just based off cases be preemptive of head of hospitalizationors deaths rising and that perhaps is or isn't a tactic that the u.s. might be expected to do >> yeah, there is talk out of the uk to try to implement stronger restrictions in order to avoid getting to a worse point. we'll have to see what happens this week. in the united states, we're taking things so regionally differently with masking requirements and going back to school and with colleges and a lot of the new cases we're seeing popping up here, of course, are in college towns so the way we're dealing with that is different everywhere but you're starting to see our case counts having come down start continue to crease a little bit overall in the u.s. as well. so fears of the second wave as we head into the fall certainly

high >> meg, thank you. more plot twists in thing soa over tiktok's fate in the u.s. over the weekend president trump agreed to the deal that was being proposed bytreasury and investors. this morning he appeared to waiver this is what is agreed upon. walmart and oracle will be investing in the new entity. it is being created. tiktok global. the u.s. business. they'll own 20% of it. combined much the other 80%, bitedance, the chinese parent of tiktok says it's theirs that's not true according to sources. under the terms of the deal as i reported on friday, with the walmart investment at 20%, the u.s. ownership actually rises to a majority of 53%. the why? because many of bitedance's investors are already american general atlantic, sequoia,

bitedance executives would retain a 36% stake in the new company. besides the chinese and american investors, there is a small portion remaining and that is international venture capital types. that is all pre-ipo. it is diluted even further. this is what was said in a quote, upon creation of tiktok global, they will make the investment and the tiktok shares will be distributed to the owners americans will be the majority and bitedance will have no ownership in tiktok global remember, bitedance's ceo will the company itself, no ownership of the new company i think that's where the confusion really lies. it appears bitedance communication around this whole issue is a bit misleading saying they're the majority shareholder. p it's not really true bitedance is already today without this deal more than 40% owned by u.s. venture capital funds. as far as who's in control of

the technology, bitedance will hold the algorithm oracle will also have access and can block any updates that come from the parent company to protect u.s. consumers from disinformation or propaganda and oracle will house the u.s. user data in the cloud everyone needs a win the so there is some confusing spin being attached to this deal the u.s., bitedance and china need to sign off the u.s. and bitedance appear to have signed off or at least they were heading into today. making the chinese more of a question mark. will beijing agree to this the chinese really have given a lot of concessions including the u.s. has a majority stake of tiktok and now access to the technology that powers it, mike. it's dramatic and complicated. but actually both bitedance and oracle are right when they're talking about the stake. you just have to break down who actually owns bitedance which makes it more confusing because it has a lot of the american

investors. >> right so which ever angle serves the purpose. what is interesting is we -- so many work arounds imbedded in this arrangement nobody is getting everything outright what they wanted. it does seem as if it's a bridge to get past this threat of, you know, the deal being shut down i wonder from a market perspective if maybe the bigger question coming out of it if this deal gets approved as is, is chun heei chinese retaliation is that the way this story moves on yes probably in that positive for walmart but not necessarily, you know, true control and oracle, of course, getting essentially another big customer >> and china potentially playing hard ball when whit comes to whether it's retaliation or how it's going to treat u.s. firms one of the complaints around this is that it is similar to the force technology transfer that u.s. firms have to do to play by the rules in china and that it presents a whole new

model for chinese companies to operate in the u.s so the geopolitical ties are there. but i think it would have been more potential retaliation and potentially worse for the trading relationship, wilfred, if the u.s. outright rejected this deal and banned tiktok in the u.s. because then it would be a clearer line for the chinese to be able to do something similar. >> don't forget to mention wechat in that light as well but i mean the other thought as well that comes to mind on your reporting there is just to make sure that the voting rights are one for one based on the economic stakes in this new entity of course, plenty of examples of u.s. companies where founders maintain all of the key voting rights and therefore information control even if 53% is owned economically by others remains to be seen if any of this is enough for the president even if on paper based on your reporting it could suggest it should be. great stuff on that front, sara. we've got just 45 minutes left of the session. now down less than 2% on the s&p

500. less than 700 points on the dow. just improving a little bit as you can see there in the last half an hour still ahead on the big selloff after the break, jeffrey rosenberg breaks down today's plunge and we'll hear from richard bernstein and mike novogratz and others you're watching "closing bell" on cnbc. i can't wiat to share at&t's big 5g news... (shouting through the glass) at&t has nationwide 5g? yup! and that's faster? faster, yea! but is it reliable? ah huh and secure! you should consider making a big deal about it! bigger? i said bigger! oh, big-bigger deal bigger than what i'm doing? it's not complicated. a 5g network needs a 5g device. now everyone including existing customers can get a free samsung galaxy note20 after trade-in.

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welcome back a little more than 40 minutes left of trading. all the major averages selling off hard the dow is down by 644 points. still looking at 2% selloff. s&p 500 down 1.57% also off the lows, the russell 2000 index getting slammed to day. down 3.6%. in part because of the financials are among the hardest hit. joining us for more on this market is jeffrey rosenberg, portfolio manager of the black rock systematic multistrategy fund it's good to have you here, jeff also looking at oil prices will taking a 3% to 4% slide here is this a real growth scare over

rising covid-19 cases in europe and potentially the u.s. >> well, it is a manifestation in growth scare because what you have is the threat of a renewed shutdown and so in terms of the market reaction and market pricing that is manifesting itself in kind of the growth off scenarios, that's clearly, i think, the story of today among a couple of other headlines. but, yes, that's what we're seeing in the markets. >> trying to figure out whether it is brief and sort of a corrective process after this tremendous runup we've had had for stocks base he cannily straight line since march. or the start of something bigger and more pronounced concerns like we had in march over rolling shutdowns and uncertainty over virus path. what do you think? >> i think we're dealing with a lot of negative headlines. after an environment where the market has had a tremendous runup, i think it's important that you've had a major shift in

policy understanding of how to balance the needs of health and safety concerns with the needs of the economy and that dramatically lowers the risk of the kinds of broad based economic shutdown that's were so damaging that we saw in march. so i think we're seeing a pullback here. the i think it's coming off of an extended period of runup. but certainly i think the bigger fears that this would replay in terms of that kind of broad based shutdown with those kinds of economic impacts is going to be overstated. now that's not to say that the slowdown and the impact may be from targeted shutdowns priced into the market. but i think the bigger fears of returning to the depths of what we saw in march are probably overstated >> so would you suggest buying some of the cyclicals that are suffering so much today whether that is the banks here in the u.s. or broad indices in europe which have suffered a lot today

based on those fears that you're suggesting might not materialize if full shutdowns and suffered year to date anyway? >> well, that's a really short term tactical question in terms of, you know, do you buy the dip today? it's not really the way in which we invest. much it's very hard to know. it's more important to take a broad broader perspective around covid-19 uncertainty and the balance in one's portfolio rather than trying to time the market and covid-19 headlines which we think is very hard to do you're going to have a better long run investment outlook if you look for sources of balance in your portfolio that you have sources of areas of investments that can participate in the upside like we saw in september and in good markets and then you have areas of the portfolio that can provide some balance and

some defense when you have days like that. gets you away from predicting and answering the question you just asked me do, you buy the dip here very hard to predict that. >> so if you want to buy some defense, you want to protect yourself a little bit, you normal gl normally you go to bonds you're seeing treasuries bought today and yields lower haven't seen that really in the last week or so as the market has stumbled do treasuries still offer the best protection? can yields go much further >> you know, today is a good lesson i think it's important that we take a look at what happened today. you're seeing the negative correlation and yields rally where are you seeing the yields rally? you're seeing them in the longest maturities so first point and take away there is if you look for something defensive in your portfolio, you have to move out the yield curve. now there is a lot of fear traditionally moving at the

yield curve because of inflation. i think that is a much longer term issue we don't have inflation risk on the horizon. when we have negative moves like we've seen today, the curve will will flat will flatten so when you're looking for that balance, you're going to have to move out the exposures that is one take away. the second take away is even though the correlations are negative, the bait yashgs the sensitivity is lower and that was what you were referring to, you know, with rates as low as they are, you still see that the you're seeing it but you're not seeing as much of it so when you are being looing for and expecting that balance to come from your fixed income, you're going to get it, you're going to get it more if you have it further out the curve but it's going to be lower than what we anticipated -- sorry, than what we experienced in the past so you have to kind of construct your portfolio and understand that the relationships have fundamentally changed. the they're lower. there is less sensitivity.

sensitivity is still there so i think you need more of that or you need to think about what is happening on the risky side of the portfolio and make adjustments there: >> jeffrey, gau always good to r from you we have 40 minutes left until the closing bell we're recovering a bit the dow is down 615 points 2.25%. the nasdaq is down .75%. russell, down 3.5% "closing bell" will be right back

just improving there banks remain sharply lower following large declines for european banks as well deutsche bank closed down nearly 9% hsbc and standard hit a 25-year low. boning down more than 5% today in london trade. u.s. banks are down around 4% themselves this in part due to an investigation by the international consortium of investigative journalists to highlight suspicious activity from various banks in the past specifically money laundering falli following a review of hundreds of claims of enforcement network. a slew of banks including hsbc, deutsche bank and bank of new york melon and others. this activity is embarrassing for the banks, however, important to note. it's in the past and government and regulators already already aware of the details since suspicious activity rors are reports between the banks and the government in the first place.

this is not new information to us or our regulators today selloff there much more down to a broad cyclical selloff length to the concerns we've been talking about and also supreme court news further making a stimulus bill less likely in the u.s. something that banks are disproportionately relying on. mike, banks, what, down 4% or so the other thing i just point out that the headline at the top, standard chart and hsbc hitting a 25-year low. so we're not just talking about below the march lows we're talking about below lows hit in the financial crisis which just goes to highlight a different point which is the last decade, the last two decades for european markets banks in particular. >> yeah. that is incredibly stunning. and more broadly, banks what we're seeing unfortunately is they capture the down side when there are these ticyclical fears and lack of further support and don't fully get the benefit on the upside very much perhaps because just not as much

financial leverage earnings leather to improve the economy and also this idea that whatever does fall through the cracks in terms of getting back stopped in the economy, things like commercial real estate, things like small business loans, even mortgage that's are rolling off forbearance programs, you know, the banks are there to pick up what falls apart so it's a tough kun today. zi it doesn't seem like it should be linked to older activities. >> why didn't it come out then why is it coming out now >> some of it would have been at the time hsbc gave a longer statement saying they entered into an agreement with the department of justice in 2012 based on this and that was all cleared and tied up in 2017. parts of that were aborted during the time. so that's really again the angle on this story no whether when the headline crosses people think it's new information versus in fact a revelation about old settlementes that

happened and the added point, a lot of new developments happened in last couple years which led to the conversations between banks and the government and regulators this is a review of that perhaps to breaking new information that the government regulators didn't know to the point of of what is causing the selloff, all banks are lower today in the u.s. whether they were mentioned in this report or not which i think only goes further to highlight that there is broad cyclical concerns either way. i would also flag that we're getting more analyst notes out over the course of the weekend on the terms of the second set of stress tests we learned for the banks. again, most of those frame that as not as bad as it could have been but that is another hurdle that the banks have to get over in the short term as is the election which like stimulus developments, they're disproportionate disproportionately tied to there are a lot of short term hurdles that we can expect any meaningful bounce. and they seem to be getting sold

every time they have a couple of days of strong relative outperformance >> of yeah sell on got day, sell on the bad days even. kbw bank index down 4% we'll track that into the close. let's get a cnbc update with sue herrera. >> hello, everybody. here's what's happening. along the texas coastline, flooding is intensifying tropical storm beta makes the slow approach. it is expected to come ashore this evening and bring up to 15 inches of rain to parts of texas and louisiana over the next several days three former wells fargo executives have been fined nearly $1.7 million for their roles in the bank's long running sales practices scandal. one of the executives former community bank group finance officer matthew ruffleson was also barred from the banking industry in canada, an investigation is under way after a woman sent a poisonous substance in a letter to president trump. she was arrested while trying to enter the u.s. over the weekend.

in washington, the national portrait gallery has another civil rights hero. a life sized painting of congressman john lewis has been unveiled and it is just across the hall from president obama's portrait you are up to date i'll send it back to you >> thank you for that. still ahead, we speak exclusively with former secretary of state john kerry. we'll get his take on the gridlock in washington, the upcoming election and how the vacancy and the supreme court seat plays into all of that as we thoed break, check on bonds.

we've got under 30 minutes left of trade. here's where we stand in the markets. starting off the week with a fourth week of losses. we're off the worst levels of the session. the dow is down 684. coming off last week where we closed at six week lows. the selling does continue. a lot of the cyclical groups are getting hit the hardest. after the break, we'll discuss whether last week's wild ipo action presented a red flag for investors. and later, mike nogogratz weighing in on the market plunge and telling us how long this volatility is expected to last hey, dad!

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welcome back dow down 625 check out a share of roku. the company reaching a deal with our parent company nbc universal whereby they will add the peacock streaming service. terms of the deal weren't disclosed. stock up 17% meantime, shares of theater stocks are plunges on renewed coronavirus concerns and soft u.s. box office results. >> that first story i'm happy about. as you know, i'm a big viewer of peacock because of the premier league on it >> and you can watch yourself.

>> i've been having to watch it on my laptop it wasn't available on roku yet. i hope soon. i'm big fan of that. and so are investors >> and hopefully they can still continue the games with the surge in cases in europe. >> that's very good point. safety first i hope they allow as much leeway as possible for the premier league arsenal got off to a good start. we must pivot back to more important things the. >> congratulations >> the markets selling off sharply down 2.3% for the dow. we stand off the session lows. joining us now, rich bernstein, thank you for joining us what do you make of the selloff today? it is economic data and covid-19 data or market technicals led? >> first i have to remind you, you don't remember, but i'm a tottenham fan. so at the risk of setting off fires in north london, i think we should probably discuss that at a later date. >> side conversation, agreed

>> exactly what's going on? i think more than anything else can you classify this is uncertainty. that combined with what i would argue is a pretty speculative market really sets up for correction right? i mean, when you have a very speculative market implies complete certainty we're being bombarded with uncertainty on every find. >> what are the key factors that play into that uncertainty is the potential lack of a system laus o stimulus one of the key ones how closely are you focused on that >> sure. you know, we kind of have the milestone forming in washington which is setting up all kinds of uncertainties, whether it's government shutdown, whether it's covid-19 response, whether it's the election, whether it's fiscal stimulus. yeah, it's going on.

this is layer on top of layer on top of layer coming from it washington i think that's very unfortunate. it is getting better that is really supporting the marketplace. i think we have the kind of fundamental situation that is improving although not rapidly so it is improving combined with this milestone emanating from washington >> i you feel like we had had uncertainty, rich, this whole time we had uncertainty since march over whether we get a vaccine and whether we get enough treatments and testing and whether we would have a second wave or the first wave would erupt in new states. the markets went up and climbed that wall of uncertainty did it get overextended? >> sara, if you go back to march, the market was depressed. valuations were depressed also back then. so that was really a market that

was focused on uncertainty when ipos become public and go up rapidly, it it's clear we got into a speculative environment it's hard to argue that risk premium in the market are overcompensating for risk. you combine that with every day in uncertainty appears now that's a lot for the market to stomach in a short period of time. >> what about certain equity markets overseas the risk/reward there more attractive >> i think definitely. you are know, we've been trying to gain some extra cyclic alt looking at nonu.s. small cap stocks the valuations are much more conservative than you have here. the fundamentals are starting to improve. they have like zero sponsorship. you know, i would defy any one of your viewers to be able to

name one small cap european company. i'm sure they're familiar with every detail of the fab five tech stocks. everyone knows every detail about that that shows you that maybe you should be looking somewhere else >> i might be able to manage it. thank you for joining us good to he soo you. >> thank you for having me >> after the break, the final minutes of this wild trading day plus why one firm just initiated snowflake with a sl.el those stories and more when we take you inside "the market zone."

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[cash register beeps] uh, i need a price check on honey. don't get mad. get e*trade and get more than just trading. investing. banking. guidance. we're heading into the "market zone". today we have allied chief investment strategists lindsey belle with us. very good afternoon. let's get started with the market selloff stocks deep in the red today the markets down for the fourth straight day erasing all gains for the month of august. we're well off the session lows.

we're down 1.6%. so i get a little sign of buying off the key levels you were talking about earlier. the four consecutive day highlighting the fact that this is definitely not over yet >> it seems not. tag that level this morning and then make a series of kind of higher lows or closing strang today. stronger lows. it could be that simple. when prices go down, risk levels go down. people don't think of it that way. the risk/reward gets better if you have lower expectations and fear in the market today you saw broad eniening ouf that concern i think one thing to come back to is we took away august gains. that's not going that far away in time. we started july at 3100 on the

s&p 500. so that would feel like a real bruising decline but without only bring us back a couple months. >> not everything is getting sold, lindsey. paypal is up 3.7%. amd up is 3.5% apple, nvidia. apple is up 2% so this is kind of the familiar beloved semidefensive, i guess, stocks that do well in the stay at home economy. that's what is working

>> down 644. we have a new note saying the fight could mean bad news for financials and housing in particular for more, let's bring in the analyst behind that note, jarrett seeburg. i assume this has to do with the

stimulus >> yeah. the stimulus is going to provide relief that consumers need, that commercial real estate market needs it and small businesses need it. even more broadly, we can use calm in the news cycle banks do really well when things are not quite this crazy we already have an election going on we have a covid-19 crisis going on n now with have a battle over the supreme court. it's a lot for the banks to be able to thrive in. >> is that only sector that you're focused on because of this supreme court bat snl. >> i'm sure it will spread elsewhere. my concerns are financial and housing. with very a policy team in d.c we cover all the sectors certainly the enormous impact on health care that my colleague

follows given the future of the affordable care act. there is also big impact on fannie mae and freddy mac. they have a huge case pending before the supreme court right now. this vacancy and who gets to fill it is going to have significance zblment we'll hit the health care stuff in a moment with bertha what about the increased chances of a government shutdown >> yeah, i know. talk about, you know, the last shoe that you really need to drop now we're talking about a government shutdown. our view is still that they are going to cut a deal. it's just really hard to believe we're going to get beyond september 30th it does seem like everyone will blink at the last minute we're not really expecting this first deal to include a lot of christmas ornaments, you know, unrelated bills. they get tacked. that probably comes in when they

try to fund the government for the rest of the year >> thank you for joining us. >> pleasure. >> the death of supreme court justice ruth bader ginsburg as we were discussing could have a big impact on the health care sector as we will. digging into that as well. >> that's right. her death raises the stalks for the affordable care act with the supreme court set to hear a challenge of the law on november 10th if republicans succeed in se seating a conservative, it increases the odds of the law being overturned it will be an overhang for insurers like hospitals for universal health with big exposure to obama's medicare expansion. it also puts health care back on the front burner for november's vote with a likely really bitter battle over confirmation, sara >> bertha, so i guess what is

being priced in right now? it is just uncertainty because it is sort of hard to quantify how beneficial in many ways obama care has been for some of the health insurance stocks >> it really is. some analysts think that the pitch battle over confirmation could give president trump a tail wind with pro-life voters others think it can give a tail wind to the biden camp with pro-choice voters. overall, it's just the uncertainty as to where this could go and whether the court could now actually decide to overturn it. chief justice roberts was the critical vote in 2012 to uphold the law. if there is another conservative and he were with the minority, then the law could fall. >> berth yashgs thank ya, thank. we are rebounding significantly as we approach the close as it relates to the supreme

court battle that is likely to ensue, do you think the market does not expect the stimulus to pass before the election >> it's fair to assume that certainly before the election. it was seen as relatively remote at this point, just an additional distraction we're at point now, i think, if there was for whatever reason any momentum in the direction of a support package that it would come as an upside surprise i don't think the market feels there is a great risk of that considering the fact that the house trying to just put forward a funding bill to keep the government running for another couple of months that is met with friction from the other side it doesn't seem the conditions are conducive right now. >> let's hit know flake. it's officially getting the first initiation on wall street this week. summit insights initiated the newly public company itself citing intense competition in the cloud warehouse space and calling snowflake the most expensive name in it all of tech shares of snowflake more than

doubled in first trading day just last wednesday. stock is still up more than 95% since the debut. mike, not getting hit that much. down 3% in today's jefr all selloff. and there were a lot of people that said, look, this is a sign of a frothy speculative market an analyst call like this resonates for those questioning it but it's not getting hit that hard >> it does but, you know, what essentially this note does is let everybody know what they thought already i don't think anyone buying this thing at the open at $245 a share was under any illusion that it was fabulously expensive. it doesn't seem like it knocked the bull case off course although, some of the mentions there of how snowflake doesn't have that advantage might be news to some people out there. it was considered to be this better mousetrap and elite management team that basically was a sure thing it is going to be interesting to

watch. i think it's awe risk appetite you have a tail wind in software stocks today oddly enough in a down market. so maybe that is helping mitigate the losses. >> we have a news flash coming out on comcast >> julia has the details for us. comcast is cnbc's parent company, parent of nbc universal. this report saying that they accumulated 20 million shares for 870 million stake. .24% of the company you see comcast shares moving, popping on that report we reached out to comcast. we have not heard back yet this is under the company belief that shares are undervalued. we'll get back to you when we hear from them >> comcast still down on the sbigs 1.6% or so

as we approach the close and we bounce off the key market levels that you just mentioned, does that give you encouragement or is this just a bit of a repeat of the last three or four trading sessions, the net infect of which is significantly lower? this is a group into the september 2nd high we tested that corrective territory and it bounced right off that i think there is a lot of uncertainty at hand. and really that came to the forefront today whether you think it's coronavirus cases increasing in europe that spooked investors and the potential reimposing of restrictions over there that could bleed over here into the united states. if we see increases or what we heard from the banks earlier, whether it is trade tensions,

whether it's the stimulus concerns that continue to linger as it's unlikely that we're going to get a bill that we discussed already on the show before the elections i think there were a lot of question marks there there is seasonal volatile period of the year so i think the action that you're seeing today is also important. >> we've cut the losses in half. go ahead, sara >> i want to come back to comcast for a moment shares a little lower. burt also off the lows after julia just reported that report. i can confirm according to sources is true. so for the two are having constructive conversations and that they believe that comcast is greatly undervalued so doesn't look like anything contentious here

interesting to see the shaures down 1.3%. will interesting story not the normal consumer package goods companies we have seen they've gone up that with ge and other names as well. >> if you look internally, that improved as well the question is 7-1 down side volume versus upside volume. earlier, we were 95% and that would have registered as a so bad it's good. final sort of down side flush maybe for this correction. a mixed message there. take a look at this high beta versus low volatility. high beta is doing okay relative to the morsteady stocks and low volume but they lost that advantage in a month to date basis. a lot of financials there. and then the volatility index, it popped above 30 earlier today. there say little concern whether we would skid lower.

the traintraday rally calmed tha little bit sara >> okay. we're down 521 points on the dow. so we have really cut our losses here apple is leading in the dow jones industrial average helping lead the whole tech group higher just well off session lows technology brought us back the tech sector closing higher by .75%. everyone else fell energy and industrials and materials the worst performing group. that is the longest losing sfleek a while >> i'm wilfred frost along with sara eisen and mike santoli. well off the session lows. the s&p 500 is down 2.7% they

had been down 900 points the nasdaq was down ten basis points the nasdaq is 00 was higher across all asset classes they closed down 3.5%. gold is down 3%. the dollar had been higher by 1%, closed higher by 7%. we'll ask mike novogratz if he thinks the market will decline over more uncertainty around stimulus short seller and we weigh in on claims against nikola and why critical of the electric truck maker's response to the charges. and we'll ask former secretary of state john kerry about how escalating tensions could impact the global economy first of all, let's set that market move today. lindsey belle, chief investment strategist at ally investors still with us.

mack santoli, coming to you first. clearly, a nice rally off the low of the day and sara pointed out led by the likes of apple up 3% shopify up tesla up at the close. those stocks led most of the pullback over the last three weeks. there is buying in august. they led us lower. apple, remember, down close to 25% high to low. just in september. if you are looking to see if this selloff run the course, apple is going to be a beacon on that score now we also mention that things have happened in the last several weeks and a very scripted way

tech gets hit the most then the s&p 500 another way of the selling. and cyclicals test the conviction about the recovery. we notched to a 10% decline and start to rally it hits all the plat points. >> i feel like you have a real debate right now between those saying growth isn't going to just rebound in a straight lun especially with the fears of a second wave of the virus in europe potentially here in the u.s. with the seven day average ricing in it cases in this country. crude oil is down a lot this year or the group from the last few weeks were saying buy the cyclicals. they're undervalued. we're going into major economic recovery we have a ton of stimulus.

>> do you choose a side? >> i don't i think you're going to see the residual effects from the virus situation certainly to the middle of next week. there say report out that potentially people could be wearing masks. until the end of next year one thing i want to point out rather than choosing one of those positions is more so just to look at the strength of the market when it rolls down, majrle in names that people know, like technology names. there is still a tremendous amount of cash on the sidelines. just look at the pressure that comes in when the market trades down when that pressure the pressure is there for buyers that have cash that they want to deploy that maybe been afraid of missing out. so i still think we're in a situation where people have more

fear of missing the upside than down side. something to be watchful of. it does give support to the market that's why cash investments looking for cheaper assets on selloffs might make some sense right now. >> victoria, when gold pulls back 2% to 3% on a day when there is risk off sentiment, is that a buying opportunity? >> well, we're not in there buying gold, actually. we do see the pullback is a buying opportunity there is still quite a bit of cash on the sidelines. when you see a pullback to this extent or that we've seen last three or four trading days, you look at that list of names on your wish list you see what is there that is coming down that you can start adding into your portfolio this could be an opportunity to

start building that position we don't think you should trade on headlines per se you're chasing a market and that doesn't end well for an investor the longer term trends and strategies in your portfolio, the pullbacks are opportunities for you to start adding to those things >> are though still disconnected from the market? >> earnings expectations have been moving higher over the last several weeks. we're looking at -- continue to look at 2021 numbers. we're looking at $2400 above the s&p 500. they're moving higher. something you don't typically see in a year out. ut is reflecting the move we have seen in the market as well. there is concern that if there is a second wave, and a lot of

the uncertainty that's are out there if they come to fruition we could start to seat numbers come in. it test rz the multiples and brought them down a little bit you know, 23, 24 times >> cyclicals suffered today. oil is down sharply but ro recovered off the lows >> i don't know if we can point to anything, nobody buys copper. it is shiny and you make jewelry out of it. you know, theoretically, somebody has a need. the dollar was a bit stronger. you thought you have the makings for copper to back off as well its no the something that has so far this little selloff and cyclicals is not really cut that deeply into the relative

performance for the month. i'm not sure one day's action would have really turned upside down this idea that at least global industrials has one area in which cyclicals have a little bit of catchup left to do. st australia and the euro unwinding. i wopder nder in moves like tha suggest building fear wlchlt it is shutdowns, economic growth scares do you have to pay attention to the sort of outside moves in the currency market or just that positioning got so extreme and the dollar was so weak for a while. >> well, i think, sar yashgs the sara the uncertainty is there whether it's the rise in covid-19 cases in the uk, the supreme court issues we have and does that kick stimulus down the road even further? what does that mean for the election so you have that uncertainty going.

but if you look at the fundamentals and comet, i mean, let's look at what we've seen. we've seen retail sales go back to their february levels we have a consumer that is strong and consumer sentiment there. regional manufacturing pmis are he trending higher yes, things are pulling back a little but the names are still there. the housing market is up i think you have good fundamentals there to continue to drive the market. but it's the daily headlines that we're getting that is generating that fear the interesting thing i think is look at the bond market. wet have a treasury yield that actually moved a little bit higher on the ten year i think we won a basis point higher today there is near fon a short time basis. the credit market is telling us and the treasury market the longer term fears are really not coming to fruition again, i think that this gives you an opportunity to go in and buy some names and equity market

that you like in your portfolio. >> michael, you are buying the u.s. banks >> we are buying those u.s. banks gradually. i think banks are very, very low valuations right now they have good competitive positions in the marketplace i know it's sort of counterintuitive or it's not the popular thought when interest rates are going to remain low. i think you're going to see an economy that starts to recover and when that happens, banks will be there to help take advantage of that recovery i also think that some of the delinquent concerns are overstated so i think it's something

certainly to look at from a portfolio standpoint and it's a huge diffident play i think dividends make a big, big difference in portfolios particularly after we had a large capital rush up in terms of market averages >> financials losing 2.5% today. thank you to lindsey bell and michael and victoria fernandez the good to see you all. up next on the sw, wllhoe' ask famed investor michael novogratz where he is finding safe haven

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well, after three straight down weeks, we did end lower today. but well off of the lows of the session. the s&p 500 lost a little more than 1%. the dow lost 500 points. nasdaq almost went positive into the close. we saw a real pickup in steam from technology stocks apple, sales force, they led the dow. a lot of the chip stocks gained into the close and that's what happened the overall numbers look a lot better oon the major averages. we saw pressure mostly on the cyclical groups that had been doing well lately like energy, materials, financials had a rough day and small caps in particular russell 2000 down 3.5% it looked a lot worse a few hours ago. >> certainly did as you said, still lower off the lows of the day. let's bring in michael novogratz to discuss what he is doing at the moment

mike, were you impressed by the untra day bounce or do you think there is quite a lot more to go in this? >> you have to the i think it feels like it's a day where people have had risks we're getting out of it. so you -- last night you saw the cryptocurrency market get hit hard the first markets, the dollar, the short dollar is a big trade. there is euro and sterling and emerging market currencies the s&p 500 down nasdaq down. and then there was a chart that went around. everyone saw record shorts and nasdaq futures as hedges and it looked like that just started getting covered during the day and accelerated into the close. so one of the painful days where the heads just didn't work the core positions they lost on it. >> i think the broad trader today is going home licking his wounds there is a lot of reasons for it you have rbg i think it highlights how close we are to the election i think this is here to stay we still have a lot of

liquidity. it is treacherous markets from here on out. >> why did gold fall today does that present a buying opportunity when it does fall on a risk off day >> you know, gold fell because people are long it when volatility goes up, they get out of positions they have if it was gold, bitcoin, bank stocks, anything that people were in today, they started selling. that correlated risk off what is interesting is what kind of stopped the market was the short of the nasdaq future i think people are selling a lot of hedge to get equity and saw giant short covering in it again, interesting they didn't really budge off the office lows today. off the highs to day so if you're in the short dollar position, then they came up. you got no joy

>> right and potentially another reason why gold fell. how much exposure should you have they showed signs ofselling an they get hit hard. >> i think we probably put the high in for the year in tech stocks in apple and nasdaq and in tesla my hunch is after that is over, you'll see more sellers. i think it took the high in the nasdaq wet had a big correction, right? so you put the high in 30% late eastern some of the names. people aren't going to up easy people made lots of money on it. if you look at the 1999 selloff in the internet after the big selloff, you have the big rally back and you don't make the old highs again and you sell off

again. i think we'll be in the two and free throw environments. after the election, if all things are equal, dwoent have a vaccine and we don't have major secretary lockdown, would thb a buying opportunity at these levels or do you also need to still see 10% or whatever value? >> you know, probably, if we go into the election and bud enwidn wins, i think the market will go lower originally because of the tax plan that is probably the buying opportunity. it is on for three more years. there is not a lot of place to put money in the fixed income side i do think that equities will tun to be the horse. i think we got overvalued ahype. the i think today is the first day that just an overall risk people said wait a minute, vud can come back in europe.

we have banks under scrutiny and, man, this rbg thing really throws a new wrench into the election calculus. and so i think you're going to have higher volatility >> yeah. and potentially raises a risk of a government shutdown. no stimulus before the election. how how do you protect it yourself from those kind of risks? what are you doing to brace for that election volatility >> i still have a big, you know, portion of cryptocurrency. i have taun a lot of other risks off the table just similar portfolio right now. long day shorts. just don't think there is a great risk/reward for being a hero in here. >> if the exposure is a percentage of the fund or however you this about it higher other lower at the end of the year >> it is higher. my bitcoin up is 100% on the year or close to it.

so you get organic growth that way. we're awe bull market in terms of talent coming into the space, new customers. i look at my overall business. the i have not been bull ush i'm hiring people. ti e at the end of last year i was firing people and now i'm hiring people we're bull initial this place. i think bitcoin is going to be a victim in the next six weeks to the rest of risk i do think that the macro backdrop is so good that at one point the story of inflating away, you know, our debt, you know, the base is such a powerful story people come right back to gold you wait here or you wait for one more let down. >> mike, thank you for joining us >> thanks, guys up next, anothe expert mr. mike santoli examines

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let's send it over to mike who is looking at the potential implications of stalling the stimulus package in had d.c. mike >> there is good news and bad news in this chart it shows up top real personal income this is in dollars $18 trillion so far, well above year ago levels right here. now this includes transfer payments, unemployment insurance, $1200 check that most households got earlier this year this is without it so this is just earned income. can you see the big decline. and then just a very slow increase well below precovid-19 levels so this is the number you have to keep an eye on. as things roll off unemployment insurance and things like that and people draw down the savings they may have built up from the support checks we got earlier this year, you know, this number might actually sort of flat line or bleed lower that is the issue. but it also is an explanation as to why we haven't seen a dramatic slowdown in spending since the lapsing of the other supplemental unemployment insurance. there was a little bit in

aggregate of savings built up. a little bit of a cushion that is not going to stay there for indefinitely >> mike, i guess the other point as it relates to the banks is things like mortgage forbearance which still has longer to run and has been talked about and altered by executive orders as well but deaf fitfinitely a lot of mg parts. >> the return to fuller job growth, the greater that loss is going to be eventually >> i think we have to see the savinged rate. so elevated during the crisis as people, mike, were getting the extra payments it was in many cases more than they were earning. and how high that savings rate is which could mean it is not a fuss call cliff, you know, it can be a more gradual and slower

than even the mapping out. >> it's been drawn down a little bit. but not completely that's right so, you know, the question is do people kind of slow their spending anticipating it because dhoent see the job market coming back or do they expect the benefits to go away? >> then they are going away unless we get a deal from congress mike, thanks >> nikola shares plunging after the founder stepped down from executive chairman amid allegations of fraud by a short seller we'll ask the same short seller o es n hwhdootave a position in nikola why he thinks the electric truck maker bungled the response to the charges. it's a thirteen-hour flight, that's not a weekend trip. fifteen minutes until we board. oh yeah, we gotta take off. you downloaded the td ameritrade mobile app so you can quickly check the markets? yeah, actually i'm taking one last look at my dashboard before we board. excellent. and you have thinkorswim mobile- -so i can finish analyzing the risk on this position.

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welcome back time for a news update. >> hello here's what's happening at this hour a federal judge has dismiss aid challenge to nevada's vote by mail law which was brought by president trump's re-election campaign the judge said the campaign failed to say how it could be harmed by the law.

the trump campaign filed suit in several states over voting rules. a new york city police officer is charged with spying on tibetan immigrants. he is a tibetan immigrant that is tasks with identifying threats to the people's republic of china a big schedule change for major auto shows detroit auto show is pushed back until september and october of 2021 now this comes just weeks after the los angeles auto show moved the date forward to may only about a month before the detroit event had been restejed. the detroit auto show now has a key time slot in the fall and as you probably know, that's when a lot of new models are introduced you're up to date. back to you. >> thank you so much up next, we'll ask former secretary of state john kerry about how to deescalate economic

tensions with china haen gand g reaction to the loom being supreme court fight. ♪ ♪ ♪ ♪ ♪ i keep working my way back to you, babe ♪ ♪ with a happiness that died

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welcome back to "closing bell." microsoft may have missed out on the tiktok deal. today it announced a separate multibillion dollar acquisition. the company is buying privately held zenemax media they published popular titles including doom, the elder scrolls and fallout. other game publishers moved higher today today microsoft opens preorders for the next generation xbox con soles. the series x and searries s

microsoft is not just a enterprise cloud software player i've been very focused on the tiktok negotiations. one of the deals on the table is the microsoft wanted is all out acquisition of the u.s. business bitedance's perspective, the parent company of tiktok, deals like this and the fact that microsoft is in consumer technology that it might have considered microsoft more of a competitor than say an oracle which really is an enterprise cloud software and security company. it's very heavily in consumer tech >> right though not in social media per se yet but -- >> totally >> the other point there is as you talked about is exactly what oracle versus microsoft were willing to settle for in an all out purchase with the ability to do whatever they like in whatever field where the

algorithm was more of a threat to tiktok. again, we don't know the ins and outs of that for sure. they decided no the to opt for the alternative option instead. >> also complicated too what that u.s. business is worth. let's hit nikola shares closing lower by 19%. the founder trevor milton steps down as executive chairman amid an investigation into the company. nikola has fallen now 35% since they published a report accusing the company of an ocean of lies. joining us by phone is widely watched short seller carson block, chief investment officer of muddy waters capital. he does not have a short position in the stock. but clearly the insight as someone who an investor who has called out companies for fraud and has been right, i think

mostly ch most mostly chinese companies what were you thinking as you watch this unfold? >> first of all, i think the research was great p there had been some reports previously about nikola and some of the issues with the demonstrations clearly trevor milton is somebody we should look a little bit at because, i mean, even before the nation this morning, they had no credibility. the promotional video that the company filmed of the nikola one where it referred it to as in motion and it was moving but all they did was push it down the

hill they admitted that allegation was actually correct and he said well we never said it was moving under its own propulsion that says a lot about the company. just in terms of the -- and the credibility of the people running it does it say anything about the technology yeah, you can iner if there are more issues there than we would have otherwise thought just really a bizarre tale when you consider the market half of this company >> yeah. and not going to dispute individual claims with you we have not -- cnbc has not verified any of the claims of fraud. we've just been following the public as well what do you make of the sell side analysts some of them coming to nikola's defense here?

>> well, look, will also just touched upon the fraud point for a second the company admitted it was gravity powered. do the statements, do they amount to securities fraud i don't know i think it's a little bit close. because companies have the safe harbor statements and so when they give projections or when they make statements about the future, they can always fall back and say we were really optimistic and, yeah, you know, we were too optimistic we told you that the futures inherently uncertain so there might not be a good securities fraud case here what do i make about sell side analysts sell side analysts basically

their jobs, the way i refer to them is they're a high paid -- highly paid dating service for institutional investors. it's no secret if an analyst is not pullish on hay compaa compa won't allow them to arrange the dates and therefore the analyst is shutout so sell side analysts should be taken about as seriously as, you know, your 5-year-old kid when we're talking about stocks >> a lot of them get things pretty right i think that is completely wide of the mark even if at times there are examples to point to where they do get things wrong i want to ask you though --

sorry, go on >>, no i mean, i just -- it's hard to let that one lie, wilfred. they can get noncontroversial things right if you have a company that is -- >> have you got every single call you ever made absolutely right? >> no i have 18 listings -- >> have you got every single call right because if you haven't you've got no grounds to claim that all sell side analysts are as smart as your 5-year-old >> maybe as sow fiphisticated a 5-year-old my 5-year-old is pretty bright i have as a batting average as anyone on the long side but i've been doing it in the sell side in the biggest bull market of your generation. so maybe you want to cut me a little bit of slack on that one.

>> i'm happy to cut you slack, carson we have you on as an expert short seller because as an expert short seller story to talk b you don't need to go criticize every single sell side analyst and compare them to a child which just not fair. that's what i was pushing back on >> that's about the defense. i was asked what i thought about the ones defending nikola. do you have a different question you wish sara would have asked me >> you said every single sell side analyst and that's all i wanted to push back on. >> you attack me twice the you know, you're the one that told me i had no evidence elon musk was committing fraud when he actually settled with the sec. so do you actually read anything, wilfred? i know you're a good looking guy with a british accent but i wonder what do you read? >> i read a lot. to my point, carson, you told people to sell tesla stocks short. so again, tesla soared you might well have been right about the nuances. again, this stemmed, carson, we got you on because you're an

expert in this area. this stemmed because you said every single sell side analyst, a lot of them that come on this note work regularly and give out their time to do so, every single sell side analyst you said was like a 5-year-old that was unfair. p that's what i was picking up on i don't think you can have any argument for me to pick up on that particular fact >> wilfred, you -- i didn't say every single sell side analyst. >> yes, did you. >> but if you actually -- if you venerate sell side research, i don't know what role you would have in investing. i mean -- how many institutional investors do you talk to how many of them ever tell you sell side researchers really a valuable tool. >> fine. there is occasionally a sell side analyst willing to go on a limb and say something unpopular. i mean, in fact, sometimes i retweet sell side analysts

but they're a dying breed. and i don't know, do you understand that about wall street like i'm just baffled. >> so to that answer, you accept that not every one is like your 5-year-old so that is my point. i do understand this, yes, i was a buy side investors, i dealt with sell side analysts. i know there is incentive in all the research which is to entice a trade. the no one should take it as gospel you are saying that everyone should take a sell side analyst as a 5-year-old child. that's what i was pushing back it was legitimate and your attempt to attack me is just a face and does no research myself is not fair. i have tons of great questions to get to but final comment from you if you want to reverse any of your points and then we're going to be done >> no, go ahead and get to them. >> i'm saying give me your fibl chan final chance if you want to attack every single guest that comes on this network and me if we can get to. if you would not like to, we're

not. >> i think you're mischaracterizing what i said just a bit but let's say and i really don't know if you'll disagree with this i will say the incentive for sell side analysts skew greatly in favor of management's line particularly when the stock is controversial sean a short report do you agree that sell sidablists are heavily incentivized under those situations to side with management versus the short side >> i think you accurately point to the fact that sometimes there are conflicts of interest in the way this is set up but that, again, is not what you said listen, i think the point being here is there is a middle ground we can agree on. but that is not what you brought up i appreciate that at least where you seem to be pointed to. >> why don't you get to your next questions and we, you know,

and i think most viewers can make up their mind now about sell side research based on our discussion please proceed with the next question >> we are now out of time on this point but i would like to make you were on this perhaps after the show and we can get you back and get to the questions next time i think this has gone onfor us too long for us both and viewers. but again, we got you on because you're an expert in this field we did want to discuss that we thank you for that initial intention. carson block, thank you. we have breaking news now on the fed. steve liesman got it. >> thank you very much fed chair jay powell testifying tomorrow before the house which is rurd under tequired under th. act. noting that this is partly in response to federal spending and unemployment benefits. maybe a little tweak there to congres congress about the stalled addition of stimulus business investments show signs

of improvement employment and economic activity overall are well below p prepandemic levels and the outlook is uncertain a broad recovery will will happen when people are confident they can go back to their regular economic activity. talks about the main street lending program which there is a lot of interest in in congress it's a $600 billion program. he says it is now $2 billion of loans approved or in process in the pipeline, that is numbering 230. he reit rates the fed's commitment to help the economy >> all right steve, thank you i'll pick it up. steve liesman with the powell heads. new opportunity for esg investors. krbn is the first etf that allows traders to invest in a global price for carbon. the exchange traded funds was created by crane shares and climate financial partners and joining us for an exclusive interview is john kerry, the former secretary of state and

the advisory board chairman of the climate finance partners along with bob pisani that covers a lot of our etf coverage bob, kick it off >> thanks very much, sara. thank you for joining us, mr. secretary. now this etf is attempting to set a global price for carbon emissions for the cost of pollution. can you explain how does it work and how is this connected to the climate change issue >> it's very directly connected to the climate change issue because the climate crisis is the result of the amount of emissions that we and other countries have been spewing into the atmosphere which is warming the earth. way see it in california and floods and the additional heat around the world, water, food production refugees. there are a lot of components hitting us sir nicholas stern and other economists have made it clear that it's less expensive to deal with the climate crisis than it

is to sit here and avoid it. we spent $265 billion cleaning up after three storms a couple years ago. so this fund is index based on three existing cap and trade or trading programs that exist in the world today. the eu, canada, and california and the red g program in new england. and it's our -- and china will be coming online with a trading and that is obviously enormous consequential because of their size they're the world's number one emitter of carbon. so what this effort does is takes the index based on those three funds and ultimately hopefully establishes a global price per ton for carbon right now it's quite low to have an impact, its going to be well above that

and what we're doing is trying to attract people to this marketplace to create a marketplace solution and the problem of carbon. there will be focus on where that price really ought to be. demand will almost certainly increase and the result is going to be ultimately that there will be a d disincentive for emitting that carbon and that's how it has worked with acid rain, on sulfur. it's been practiced in various marketplaces we know it works now i think there is increasing effort around theworld particularly in europe because the eu is committed to lead on this and i think we're going to see a new energy transition emerging because the private sector is increasingly going to demand it. >> now you co-founded a climate change group you've been involved for years you have this group world war

zero to advance policy change on climate. this seems like the perfect year to advance climate change issues we have the wildfires in california as you referenced at least being partly blamed by climate change will do you feel climate change is really a major campaign issue right now and if it isn't, what are you trying to do to make it one? >> well, this has nothing to do with the campaign, per se, at all. this is about policy and it's frankly about good economic policy as well. because when the marketplace starts to move, that is the fastest and sometime most effective way of getting things done it increases technology, products, product development, implementation, deployment so that's what we're hoping for. those of us that care about the issue are focused on right now that said, there is just a clear choice in this election because the incumbent president pulled out of the paris agreement when

i was privileged to lead the negotiations for the united states in paris. and when we passed 196 plus countries came together and passed the climate agreement, the theory was not that we were doing command and control that was going to reduce the emissions. the theory was we're sending a signal to the marketplace. being that 196 countries are all going to do the same thing simultaneously and this is the margest market the world has ever seen. the energy market. so you have four to five billion users today. that's going to go up to nine billion users in the next 30 years. it's a multitrillion dollar market you're already seeing it in solar energy which the price is coming down, the capacity of solar panels is going up you're seeing it in wind turbines the fastest growing job america was solar power technology so you get the drift this is a marketplace.

and the market increasingly because of some regulation in certain countries and other incentives, businesses, for instance, you're seeing last year larry think put the letter out from black rock talking about stake holder versus shareholder. you have a lot of companies that are concerned about about esg or meeting the global sustainable development standards. this is climate week beginning in new york. and we want to focus on the importance of the market place really being a major force in this transition that needs to take place >> secretary kerry, it is sara eisen here, i want to ask you, while we have you, about another topic very much in the news and in your wheelhouse today which was the tiktok deal that it seemed like president trump was going to okay. and i just broadly, do you give the trump administration credit at all for standing up to china on issues like this, on trade, n

intellectual property and now on protecting american's data with a very popular social media app owned by the chinese. >> absolutely. it is very important that we all stand up with respect to bad trading practices from china and china has abused access to the market place, theft of intellectual property, demands that people turn over technology in order to be able to engage in business these are all unfair practices and obviously, and we stood up against them, too. we began the process of really engaging on that i think the question is not whether you fight it it is how you fight it no one has ever won a trade war. this trade war that has gone on for the last three years had a terrible negative economic impact on manufacturing, on farms particularly, on the price of goods so there is a way to do it that many people think would be por

effective, specifically bring other countries to the table, get the european trading block, bring the tpp which we helped negotiate to the table, get the north american trading block of mexico, united states and canada and really put pressure on chinese practices. if they're not willing to respond. but when you begin by just initiating tariffs and engaging in a trade war, frankly, you make it much for difficult for the china and everybody else to get where you want to go we're not in a great place on that yet if you look at the trade deal frequently referred to, it just took us back to where we were. he had an economic and security biannual twice a year meeting from china that is where we are we've come around full circle after all of this crazy back and forth. so i think it is not a question of whether we think it is right to fight, yes, we have to fight for our rights and four or access, for our companies and for fair trade practices, but we

have to do it the right way. >> secretary john kerry, thank you for joining us to talk about the new climate etf. appreciate the time. bob pisani, thank you to you alls with. from nike to tesla, there are plenty of big events on tomorrow's radar after today's sell-off we'll preview what to expect, next and it's made for her she's serving now we made it for all branches and all ranks whether they served one tour or made a career of it. we also made usaa for military spouses and their kids usaa is easy to work with and can save you money on auto, home and renters insurance. become a member today. get an insurance quote at usaa.com/quote usaa. what you're made of we're made for for as little as $5, now anyone can own companies in the s&p 500, even if their shares cost more.

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makes it beautiful. state-of-the-art technology makes it brilliant. the visionary lexus nx. lease the 2020 nx 300 for $339 a month for 36 months. experience amazing at your lexus dealer. investors will be paying close attention to tomorrow. nike is the big name on the earnings calendar and will report after the bell. we'll have that covered for you. and reports from auto zone, kb home and stitch fix and aurora cannabis and plus tesla will hold its investor day and much anticipated battery day as well. big expectations

i can't compare nike and tesla but there is a theme that there are high expectations. nike is up 15% from the last quarter which is a big disappointment and great to get any color since europe and kline reopened and is china the growth engine for that company. it had such a strong brand and investors believe that nike will prevail and come out on top and become the winners so that is the back drop. >> and august is in included it in so it is a glimpse into what through perceived in terms of kpur appetites in august which is when the perception is that things started to soften up a little bit domestically. >> keeping an eye overnight on european markets which essentially close at their lows of the day they didn't enjoy the bounce back that we saw for the u.s. markets. >> no doubt about it it is sort of a different tone coming out of the day than going into it and we'll see if it has any legs it does seem there was the

pressure that came off as the big nasdaq was no more for sale at the lows so it if it was a fleeting portfolio or maybe look, the selling was enough for now. >> wilfred -- >> the dow is down -- >> go home and read a bunch of sell side analysts. >> i have to do some reading we're out of time on "closing bell." "fast money" starts now. >> i'm melissa lee and this is "fast money. tonight's lineup tonight on "fast," a comeback. stocks finishing well off the lows as apple rockets higher in the close. we're breaking down the tech turnaround and financials falling in today's session. and one trader said the pain is just getting started and a nikola fraud allegations we'll tell you what is nex