democrats can do this on their own. they need time in order to enact the processes to make that happen without any republican support so we have to see how it goes and could be scary. >> reporting there with the phone in her hand. >> that's the way we do it dow down 917 vix is spiking the things that we see in big days of fear are playing out again today. >> don't go anywhere because "closing bell" picks up from here. >> china troubles and debt ceiling uncertainty sending stocks to tumble the dow down over 900. the nasdaq slammed down more than 3%. >> let's look at what's driving the action concerns of chinese property giant ability to repay the debt over contagion fears at home treasury secretary

warning in an op-ed that congress must raise the debt limit. and those concerns weigh on cod momties, oil is plunging crypto is tanking. 59 minutes left to go in the session. but this selloff is big and broad. >> it is we are pretty mump at the session lows we got some great guests to navigate the selloff including david malpass. jack lew, jason pidcock and andy rothman from the mathews fund all of the next couple of hours. >> now the selloff mike santelli traditioning the action eu eunice yun is live and sema mody with the stocks exposed to china in the u.s mike, down 900 on the dow. >> yeah. pretty relentless and disciplined decline in the markets here been a grind lower.

lots of very low what are called tick read wings the waves of automated selling. across the board because they found themselves with too much -- we talked about that for months but also the dip buyers didn't show up friday we broke below the 50-day average. 4370 on the s&p thought to be a place to settle out on the august lows. 100-day average we have crossed the bit below that that's where the market bottomed back here in late october of last year after it had almost two months of choppiness so we're near that right now and just about at the 5% decline takes us back to levels first reached in july. folks looking at under here. looks all of a sudden like the m massive trading range. nothing is unwound with the

longer term trend but takes a while to regroup from. you see the volatility markets twisted up so i do think there's a little bit of selling that the market wasn't prepared for. it is not just china but china as a real push for a market already back on the heels. look at the broad segments global industrials and materials relative to s&p 500. global not just u.s. stocks. one global materials falling for a long time and they really have taken their punishment global industrials tried to hang in there even before today going all the way back to may. the point here is the cyclical parts of the market repeating have really underperformed for a few months it was the large gap growth stocks that kept the s&p going and that is now kind of given way. you don't see it spilling across

credit markets this is the ratio of the high yield etf to the high grade that the nstment corporate etf. when this is rising everyone is happy. it's kind of backed off here starting again in the early part of the year. however we are still above the lows that we saw just a couple months ago and doesn't seem if you have unwound the credit market spreads are not blowing out. you have to keep an eye on it to see if it's a be the of a lagging indicator so i would say all this stuff piled together in a fed week and the policy hurdles out there in washington i think explains part of why we timely got our 5% dip. we did get to a 5% dip intraday this year i believe but not closed on one of those yet. >> as i mentioned every sector is lower by at least 1 pistons

best performing is utilities down 1%. technology getting hit very hard nasdaq of the big three is actually the underperformer down 3% what stands out there in the tech wreck a lot of unwind. >> for one thing it does suggest the market is not just punishing companies intertwined with the chinese financial system this is the flows into the nasdaq 100 etf over the course of a few years and you saw it just got way excessive as people chased the big growth stocks higher that just means that's kind of where the hot money found the way. coming out people turning the big stocks into a bigger cash cushion i don't think it's about policy. i don't think it's specifically about earnings estimates. >> mike, thank you so much for that we are down near the session lows with 55 minutes left. let's get to eunice in beijing

with the latest on what we know about the property giant that's sparking the global contagion fears. over to you. >> reporter: thanks. the company evergrand is really a household name here, the second largest property developer and it owes $300 billion in liabilities to various creditors. the company has been expanding very quickly into dirfferent areas and warning recently about cross default risks as well as a potential decline in property sales. trying to really raise funds to pay back a lot of those creditors but not quite able to. we are going to find out very soon whether or not evergrand is going to be able to avoid default. four things we watch at this point. one is the interest payment deadline that's coming this week

for its bank loans as well as some of its bonds. and then is there going to be restructuring? another question is whether or not we are going to see a rescue plan the government has already been signaling it is not interested in a direct bailout but chinese media tonight have been reporting that one of its competitors country garden which is a largest property developer here has been talking to the media saying that it's possible that it might be interested in buying some of its assets. third, we are watching to see central bank action. there's an expectation that the people's bank of china will come in to inject liquidity finally the markets will be resuming action on wednesday today here monday. wells as well as tuesday are holiday just we'll get a

sense of how investors and bankers feel on wednesday when the markets open up again. >> i guess one thought from here in the u.s. is that if the worst comes to the worse for evergrande and the property sector is that beijing will step in and make sure there's not a mass ivi massive catastrophe for the markets. has that changed as beijing clamped down on the excesses of capitalism and now harder to bail out a big part of the capitalist market over there >> reporter: yeah. that's what the signaling has been, that the government doesn't want to be seen as endorsing what they see adds excessive borrowing. from the remarks from officials and the state media has been that evergrande is not too big to fail. same time just in the past week

or so we have been seeing quite a few company, staffers, investors, homeowners visiting the offices around the country demanding to get the money back and that whole threat of a possible instability socially is something that really rubs the communist party the wrong way so that is something that people are watching very closely here >> eunice pulling an all nighter on this big news out of china, thank you. want to bring in seema mody looking at the parts of the market in the u.s. most exposed to china. >> yeah. start with caterpillar seen as a bellwether supplies the construction and moving equipment to china. down 5%. biggest drop in shares since late last year really underscoring the concerns

over the health of china's sector and does account for about a quarter of the country's gdp. stocks tied to mining and commodities are the biggest loser on the idea that if the property sector cools down the consumption of steel and copper will fall. names that do have exposure to the mining trade like u.s. steel all trading down and in europe losses in the uk and germany where mining and steel names are listed and seeing different parts of the china trade unraveling the tech names that started the selloff like alibaba trading down another 6%. >> not getting a break here. seema, thank you mike santelli on set this is serious. we haven't seen a dow like this. down 900 since last october for the nasdaq since february. the names, if you have exposure to commodities, to china should

you be rethinking that on the idea of a major property company blowup will impact the chinese economy? >> has to inform the idea of the near term and how fast to come back we won't go back on the track of reflation trade to kick back in. you have seen so much of this accounted for in the prices already. they're smallish parts of the overall u.s. market but high beta parts, they move a lot and continue to be sensitive to every little ripple from the chinese market markets over there not open. >> talking about chinese tech. what about caterpillar >> oh. i was thinking about materials yeah obviously to the extent that it ran up with the u.s. indexes and the industrials and the idea to get an infrastructure plan sure. it will undercut that thesis. >> just the broad market

technicals given that we have been so close to highs for so long to your point first time the three of us sat here together for quite sometime a bad omen. >> or importantly we are here to cover it. >> down 934 on the dow which is approaching a fresh session low. a slew of declines across the major averages 3% or so for all of them let's bring in jupiter arm market head jay con pidcock. thank you for joining us i guess the first question is on this latest evergrande issue, to an expert china investor like yourself is this a surprise or people have been aware it's building and how widespread and

severe is it >> thank you it is not a surprise i think people have been expecting evergrande to swlid this way for sometime. the debt markets have seen it coming share price has been a slow train wreck. it is a big deal though. we don't exactly what's going to happen in terms of restructuring. i wouldn't want to be an employee of evergrande whether the assets taken over by another company as has been rumored i'm sure the government in china will want to do something to protect all the people who put deposits on unfinished houses but because of the scale of the debt this is a big deal and it is -- this is the ripple effect is causing commodity prices to fall tlsz a silver lining to this it is taking some inflation out of the system. we have seen many commodity prices run up a lot this year

and not such a bad thing. >> so you think the chinese government will want to do something. will they do enough quick enough or does this risk making quite a big negative impact to broader chinese gdp growth >> i think it's going to have a negative impact. already is effecting sentiment i think new home buyers will be wary other developers are going to be quicker to sell assets and probably discount prices in terms of it being enough, that is a tough question some people locally like to think that the government in china is all important and can miraculously make everything better again but i don't think that's the case. and evergrande is not the only problem in china property sector is not the only problem in china other things are occurring that are causing the gdp growth rate

to slow down and i suspect next year 2022 will be a much lower growth year in real terms. >> it sounds like you're pretty concerned. what does then a fund manager with an asian income fund do are you changing positions >> we've been underweight champion for sometime now but we have cut positions in mainland china, hong kong and trimmed a little bit in macau and did get called a bit there but we are underweight in mainland china. and we prefer countries elsewhere. countries that are democracies that do have independent judiciaries where the goal posts can't get moved so suddenly. because we have been nervous on china and there is a lot of value in other markets in the region finding companies in australia, india, singapore

i think a lot of emerging market investors shifting from china to india this year and india is relatively new and closed economy and lower commodity prices help india in some way. we can do the protract particularly against bond yields going lower now. >> touch quickly on the positions in macau in the past you were a big holder of the names and fact to reduce them or trim them sounds significant to me and would you warn people off those positions today? >> i'd say buyer beware. we still own one stock in macau. my view is a moment there is potentially a lot of value there but what has concerned me in the last few days is this proposal that in future dividend payments

be approved by the macau government dividends they want to make will need to be approved. it is a proposal and we have to assume that will go through. beyond that none of the other proposals are big surprises. the key thing for them is that visitor numbers improve but over the next few monthings it's going to be dicey. there will be ups and downs. it was interesting today that the stocks outperformed when many of the other china related stocks fell hard in hong kong obviously the local china markets are shut but i want to make it clear that within the context of china, hong kong and macau we are still very underweight. >> we're looking at session lows right now. dow down 960, almost 3%. jason, final question, this is obviously a huge property

developer and worries are now systemic and will be contagion what does it mean for the c chinese economy if they let the company fail >> i think quite a hard hit because properties proportion to china's economy. as i said earlier i think growth in 2022 will be quite a bit lower in china even regardless of what happens to evergrande. if they let it completely fail which i don't expect but if that happened it would have a very large impact throughout china's economy and i think confidence would slump. and that would take money markets with it and contagion around the region and the world would be felt. i'm not sure if it's quite as bad as that but there is enough messiness in china to be concerned anyway. >> thank you for joining us.

>> thank you. the dow at session lows. pretty much as we speak. the nasdaq down 3.4% let's check in quickly on the dow heat map nearing that thousand-point decline in the course of that last interview all 30 stocks in the red top performers include merck and verizon and 3m at the bottom cat, disney and dow dupont they're down 5% or so. >> at the bottom of the s&p is energy stocks. energy sector down 4.3%. down double digits now for the quarter so far leslie picker looking at that sector with movers for us. >> that's right. energy is tracking for its worst day since november 2020 and first quarterly decline since q3 of last year wort noting that the sector still the second best in the s&p

on a year to date basis and almost every constituent is now down 10% or more off their recent highs every stock in the group today is down more than 1% with apa corp. and occidental among the worst. down closer to 7 pistons and the moves in energy stocks as oil prices sink both bench marks down 2% today over concerns of a pullback in china. to put today's move in context wti up 10% in the past month alone after storms disrupted much of the production in the gulf but oil and energy getting caught up in the selloff today one of the etfs that tracks oil producers is tracking for the worst day since march. back to you. >> leslie, thank you only a lot of carnage in the

energy sector. and when you hear a fund manager like jason saying there's a har hit to china's economy it is not surprising to see why and why investors here in the u.s. might feel it. how do you look at the energy stocks >> the energy sector is above the august lows and even though it's hit today it is sensitive to global growth positions and i don't think it's positioned as badly. when f you look at the xle badly perform the crude and natural gas this quarter i guess my point is they were not really caught out on the huge aggressive over optimistic perch hitting this you look at copper, want to talk act industrial metals, these estimates of how much the chinese property sector -- >> what they excuse me. >> tremendous. i think energy obviously if all

of a sudden we talk about a deep global slowdown it's a different story. >> i'd also say it's not as simple as we might assume it to be china is tanking hard so all commodities down equally brent is higher today. gas prices of late of course unbelievably strong with supply squeezes in europe and industrial metals held up well and we'll see if we start to see a bigger china slowdown. it is not all commodities. >> we have to be open to the idea that we are all noticing the culmination of things happening in china that have been underway for a long period of time. it's not as if it just started today. >> and we also know china has the ability to pretty much come in and backstop things if it wants to that's been tested the more to keep doing that the

more you're pushing the limits but a big call like that in the same way of the fed to backstop here things many, many times. >> who knows -- trying to make an example out of everything and warned in the past >> if there's one thing to concern me in the u.s. is that the u.s. move today isn't really about china or principally about china because if you look at the stuff down a lot facebook is not in china the stock is killed. right? it is just about people retreating from risk we didn't get the dip/buy we expected the market is hunting for conviction at lower prices. >> a fed week. >> exactly. >> lots of reasons to sit back. >> important to go of that point that the first close of late under the 50-day moving average is friday and we have talked so often about that being a great level of support we have broken below that level.

regardless of the catalyst for the sellinging. >> yes big component is exactly that. >> we have a news alert. blizzard, josh >> we have news breaking here. this is according to dow jones which is reporting that regular lay toers launched an investigation into how they handled allegations of sexual misconduct and discrimination. they say the s.e.c. subpoenaed a activision and the ceo and asking for his communications and other senior executives regarding the complaints stock already under pressure today did tick down on the headlines. back to you all. >> let us know when you have comment from them. dow is down about 900 points session low a few moments ago down 971 on the dow. worst day for the dow and the s&p 500 since last october

let's bring in scott wren joining us on the phone. what are you telling the clients today? >> sara, i think that it is unfortunate when this all happens on the big dow days but basically you want clients to look at what's going on that is positive out there today is obviously very negative clearly we are making progress on the vaccine, the fed is easing and will be we have still got plenty of fiscal stimulus. growth still looks good. gdp growth here at home. we think inflation's going to decelerate those are some of the positives. the market is moving basically in one drirection for so long that you get a few of these triggers, the china scare, the evergrande scare was a trigger here and adding it to the ore

scares the debt ceiling scare how many scares are out there? many of these things if you look at history are overblown we think a number of these things overblown or not pan out to the negative so you have to look at the positives going forward and try to rationalize whether these concerns, what's the probability there? low or high? we think on most of these concerns that would really affect the market for a long period of time it's a low risk type of an event. >> you're buying this dip then >> we are. 5% is not much that's what we have had down i think if i was a trader and looking at a ideal spot to buy the -- the 200-day moving average which we have not touched since june of 2020 comes in at 4100

normally 10% corrections happen every 10 or is 11 months that is a good spot as a technician and looking for a spot to get in but for us given the outlook we want to increment alibi in here. 5% down. we want to get money on the sid lines into the market on days like this. >> we are exactly 5 prts off the highs on the s&p where are you looking to buy in? do you like the cyclicals parts of the market that do better when the economy is doing well even with global concerns? >> when i talked with you guys before that is where our interest had lied. for four to six months those have been underperformers. we want to take advantage of the underperformance there we like financials and industrials and energy we continue to like materials. we still like this recovery

trade. we don't think it's over these things don't just move in a straight line. you take a few steps up. take a few steps back. few overall when we look out to year end 2022 we have a 5,000 target out there for the s&p 500. you throw in a couple percent, 3% for dividends and that's a good return. we want the clients taking advantage of the pull backs here particularly from here on down to that 200-day moving average. >> you are not concerned about the 50-day moving average? >> no. it held six or seven times here but typically it is not a game changer. if you break the 50-day support that's typically not saying with we are not in for a huge down day. 50-day might indicate to you to have a short period of time where the market's down. we may not hit the 200-day

moving average but we have an opportunity here starting today and really friday's close but below that 50 day to put some money to work. retail clients have a lot of money on the sidelines we think this recovery still have a multiple years to go and want to take advantage of this. >> scott wren, thank you so much for joining us great to have that perspective on the show. we are down 840 on the dow let's check in on the biggest individual movers. bob pisani has a break down and josh lipton. bob, the movers here. >> there's an old saying when stocks take the stairs up and the elevator down. remember no 5% move in a whole year so this is what happens you get the sudden whooshes. we have been emphasizing that the global reopening story is essentially topped out in may and june and looking at the

proxy names, freeport mcmoran, a classic example about 30% off the highs that they hit so if you look at materials and energy the stocks are down and freeport $45 back in may. those are weaker today here. here's the sectors here. banks, energy, tech and china of course a big concern a lot of debate about evergrande and whether it's systemic risk level heads think that it is not and the chinese will step in on that there's the steel corporations weaker as far as the energy stocks goes similar situation. topped out that while ago. xle is a big mover here. apache global names similar situation with the consumer cyclicals ford and general motors also have been weak in the last several months same situation with the

retailers like tapestry and gap. consumer cyclicals not big industrial cyclical type moves and then the industrial names. similar situation. caterpillar down 5%. the point here being not to minimize the down day but this is a rolling correction, very lanlg parts of the s&p 500 down roughly 20%. take a look at the s&p 500 because we do have scott wren mentioning that 200-day moving average why the number is 4106 200-day moving average we were at 7% above that you can see here that gray line is 200-day moving average. way above that for that long time usually the s&p 200-day average is 3% or 4% in a good up market. that is roughly the way to look at the 10% correction. 4106 is a 10% correction and

just for a reference point there have been 85 instances since world war ii with 5 to 10% corrections. more than -- 1.5 per year and not close to a 5% correction in a year and very, very unusual. big moves to the upside and then suddenly whooshes to the downside sara >> that is what it feels like. thank you. let's go up to the nasdaq and down 3%. josh is there with more on the movers >> why is tech whacked today i checked in strategist for his take and nothing fundamental has changed in his opinion the valuations did get stretched for tech a lot of air developed the doctor says between stock prices and earnings and then says in a selloff expensive stocks lead the way lower. movers are apple positive commentary on the street today abouterly iphone 13

checks and did not help. apple 10% off the 52-week high amazon about 10% of the 52-week high barely in the green now for the year chinese tech names getting hit today. some of the worst in the nasdaq in today's trade smh, etf tracks the chips on the worst track since may 12th chips are everywhere and indeed of course the big brains powering so much from phones to cars, service to pcs investors selling them today. >> thank you we have recovered about 200 points in the dow. we are down about 783. we were down more than 960 at the lows of the session. take a look at the s&p 500 where you can see the damage is still pretty broad every senior citictor is lower e

s&p. utilities down energy the worst down 4% across the s&p 500 not a lot of pockets of green right now trying to see what's working why not a lot there. the dow down 765 technology is in the middle but the nasdaq is getting hit the hardest. amazon, microsoft, apple, tesla, all dragging on that nasdaq 100. if you look at the bottom of the pack financials down there almost 3%. is there a linkainge >> we'll dive into the banks slammed as sara just mentioned index down 3.6%. capital market names like goldman sachs also down around 4% and some private equity names down sharply about 8%. for blackstone that's linked to china exposure and probably market exposure. for the u.s. sen trick retail banks it is the collapsing yield curve that's hurting those

stocks 10-year touched 138 on friday. today back down to 1.30. within the group the understandable tilt of domestic names like wells fargo are down less than the higher asian exposure names like citigroup down 4.. wells down 2%. in general, mike, the sector as a whole is reacting for retail banks reacting to yield curve moves and not really exposure to china per se. >> exactly the 30-year where the drama is in terms of the yield curve, too. the yield is i would definitely agree and the private equity names runned up so much. blackstone up like 90% year to date or something crazy. you see the people skim off the top makes sense and with credit contagion is you have to have

people that own directly impacted debt of the chinese institutions that also own stuff over here and with the portfolio effect to sell the good stuff to make up the losses it is not clear at all that's the case so that's why you are right. it is a rate story everything is hit today. value is hit. >> except for airlines holding up remarkably well. >> sometimes the short leg of the popular trades gets -- >> there's a catalyst. your mom can come. >> exactly >> good news. >> it's been lodng overdue this. >> american airlines best in the s&p up 2%. debt ceiling concerns added to the mix. another layer to the selloff democrats propose to increase the debt limit through december 2022 and joining us now on all concerns is former treasury

secretary jack lew i was remembering that you were the director of the omb in 2011 the last time we had a huge scare and closer than ever to a u.s. default got a u.s. downgrade of the debt having any deja vu moments right now? >> the memories are being near the edge of a crisis on did debt limit are not good memories. you won't be surprised to know that my view is that the sooner the better in terms of congress dealing with this. it is a self inflicted wound if we end up with turbulence in the economy or in terms of confidence in the united states because of the failure to do what should be a ministerial act. this is not a question of future spending it is past commitments that were made so my view is it should be done in a bipartisan basis. and i hope that can happen. >> i think it's everybody's view the sooner the better.

it is just a matter of getting it done. i don't understand why the democrats can't just do this they have the votes and prevent a default which is not good on their hands. >> procedurally it's not quite that simple. if you take a vote on the debt limit it could be subject to what's called a vote on clou chur, filibuster, requiring 60 votes. it is not a straight path to do this. >> they could attach it to their reconciliation bill, to an aid bill around hurricanes which is discussed, can't they? >> the aid bill for hurricanes would be appropriation bill and subject to 60 votes. reconciliation is moving now on a separate track this is something that needs to be done and needs to be done without the kind of delay that causes problems even if you end up doing it in the end because of the anxiety that you create

and frankly what it does to the reputation of stability in the united states and the systems. i lived through this, a number of episodes. they never end well for those who are trying to block extending the debt limit to make a point. the idea that the united states would default is unthinkable and nobody should be treating it as anything other than that >> very quickly, percentage chance of default very, very low? >> in the end i think we have seen in the 1990s and 2011 and '13 the decision i have to believe will be made to extend the dead ceiling it takes vote and just put it up for a vote and pass. >> pivoting to another topic, i wanted to ask about china. clearly certain members of its property sector facing a lot of

pressure at the moment in fact, the whole property sector probably. do you think that the chinese government will step in if necessary to bail them out and do you think that they have ample ammunition to do so or could there be more pressure under the surface for the chinese government than perhaps people realized? >> i know looking back over the last number of years many questions have been raised about whether there was excessive lending in some sectors like real estate. i think china is trying to decide where to let market forces work their will and where to step in to try to insulate the economy. i think what's confusing it is that in the last few months china has taken regulatory actions that didn't seem to be driven by the traditional economic considerations and seemed to be politically driven and i think they have to manage

the situation carefully. we saw back in towards the end of my time at treasury when they made some kind of clumsy moves to try and deal with market volatility that it kind of backfired. they need to be clear in terms of how they think about the overall policy and frankly there needs to be communication. the lack of full communication between the united states and china is something that i find worrisome in a moment like this. i know i have in constant touch with the counter parts when things like these questions came up in the past i hope that's happening now but from the outside it doesn't appear to be quite at the same level. >> do you fault the biden administration for that? the treasury department? who should be making sure that happens? the posture is to be tough on china and gang up with the

allies against china. >> i don't think being tough is the same as not having open lines of communication and it goes both ways i've seen china less open to the kind of conversations that used to go on traditionally so i'm not pointing a finger i'm talking about the need for there to be lines of communication that work well and particularly moments of stress >> mr. secretary, i wanted to ask you about the australia/u.s./uk security deal announced recently and whether you think that sort of alliance between those sort of partners was something that the u.s. has always wanted to reach on one level or another but perhaps had been restricted from doing so for various factors. or whether this took you by as much surprise as it seems to have taken the french by. >> i can't say that i was

current on what the different discussions with the parties on the defense agreements with australia were until the story broke. but the idea that we were going to be partners with australia in an important defense initiative is not surprising. the idea that france would have liked to have been the source of tech knowledge is also not surprising whether it's a question of compete for the business or we have competing technologies that have different applications is a hard one to separate from what i can tell from reading the general press, there are differences in capabilities between what we have now agreed to provide australia and the question is does that leave not just the united states but the united states, europe, the uk, australia the allies in a better position to work together?

historically australia and france have been two of the greatest allies and coming out of this should continue to be the case. >> mr. secretary, great to see you. >> good to be with you both. >> 16 minutes left in the trading down down 2.1%. well off the session lows. the dow down 740 we are now in the closing bell market zone. commercial free action mike santelli is here to break down the crucial moments and today we have strategist jonathan golob, as well. as i said down sharply but off the session lows and let's start there. we were down 971 now 730. a nice little bit of dip buying? >> yes attempts around 4300 we saw the waves of selling as

people peeled back exposure. we have held for now you get to that point in the final hour of disorderly or bounce a little bit? we might finish short of the 5% number definitely plenty of damage has built up where you almost could say that the overall market is further along than the indexes are. we came into the day half of all stocks were down average stock in the s&p down 11% and 12% before you had today when most down 2% to 4%. you are starting to get that flush. i don't think we had any kind of peak panic and you wouldn't see that down 5%. >> some of the oil names down 2 % from the highs steel names down that much gold names media names as well. >> exactly

cyclicals peaked in early june. >> continuation. >> a process of the reckoning there. >> jonathan, do you connect the dots from what's happening in china and concerns of the property developer and the property market to u.s. stocks where you would issue a warning to clients >> no, i don't think so. i would be buying this right now but i do think that the market was feeling very fragile we have, whether it is the debt ceiling, the fact of a bad jobs report, we don't know what the fiscal situation is going to be or fed potentially pulling back on the bond buying, all of these things set the market soup that when you have news like today you get a larger response but i think with volatility this high the clear call right now is to be buying into this near term weakness. >> do not get concerned by the

factors of the 50 day moving average or others? >> listen. i'm not a technician i think that looking at the fundamentals is the only way to invest and what we'll see again this earnings season is another season of good beats and if there's a story here it is that the underlying economics have been relatively weak you get the citi surprise index negative for a couple months the earnings revised higher and we will have another positive season and that's going to confuse the heck out of investors when the economy is weakening but the earnings outlook for most companies in the s&p are healthy once earnings season starts. >> whether it was the tipping point or not fears of evergrande defaults rattling markets. jim chenos on earlier today and said this about the broader market impact.

>> we don't think it's systemic to the western financial markets. we do think it is -- there are two things to draw from the evergrande episode number one, it highlights the fragility of the chinese economic model number two, their response to it and how in xi's china where we are seeing a different change in tone you alluded to in the way that the government treating business, business leaders, western investors, how will they handle a bailout that everybody still thinks is coming in some way, shape or form >> which is the question du jour you mentioned you expect a good earnings season. if the chinese let this fail and have a bigger impact on the economy what happens to earnings expectations here? >> unless we have a meltdown in the chinese economy, i think

that the u.s. is probably more insulated to these kind of things than you would think but there are clearly issues when you look at china as an impact i'm looking at things like the supply chain issues which are a global issue and the impact that has on the ability for the economy to move ahead and recover the way we wanted. i think that those are probably much more important for u.s. stocks even though from a headline point of view which is obviously a big deal today and those issues i think reverberate through the system for a while because the supply chain issues will be addressed not in a day but for quarters and maybe even years as we think about how we want to manage them. >> mike, to the point of clearly pulled back a lot and chinese exposed names have pulled back

much more, if we did start to get news to suggest china will allow the what ento go bust that's not price tsds in yet. >> i don't know. i think you have to see it extend beyond that one situation. you have to tell me exactly what pools of securities are going to be disrupted by something like that or what does it mean for domestic growth in china so i don't know if it's fully priced in. what is telling sometimes is when our market is no longer able to ignore absolutely everything scary going on in the world so clearly there was some kind of moment here where we have earnings estimates flattening out and debt ceiling and senator manchin saying no to $3.5 trillion, built up to a vulnerable market in september

that was already off balance and i think that tells you something that we are in a slightly different market mode than blythely going up on every bit of news tie s&p now down less than 2%. nasdaq still down the most of all down 2.5% as big cap tech takes a major hit. the chip stocks are among the biggest laggards in the sector big tech giants, apple, facebook, microsoft all falling. jonathan, when you do see those names and we mentioned that earlier, facebook with the least exposure to china, apple and microsoft do obviously have significant sales there but not hunl with percentage of sales does that not point to the fact that just profit taking? profit taking after we have been near the record highs for so long without necessarily

inkremtdal good news to keep them there >> yeah. i think that mike santelli nailed the issue which was we are going the news with fragility in the system, bad news in terms of the issues that he was talking about, fiscal, monetary just set up for something to set them off. and so, that's probably the biggest issue but if you look at the tech companies on aggregate they're very expensive compared to more cyclical old economy names. you folks talking before about how much technology stocks and the like have run, how much growth run since june or even since march and those companies are giving some of that back and they should probably give some back because they're much more expensive than discretionary names or financials or other

areas, many delivering much better earnings. >> quite a recovery going on in the market right now the dow down 667 points. one point earlier this hour we were down 972 at the session lows so you can see the dip buyers have come back. s&p down 1.8%. every sector still lower but not the extremes we were at about 20 minutes or so which is a positive signal if you're a bull. >> right positive signal. it shows you that there was not a tremendous amount of forced selling that would really have you spirals into the close when you see the market respond to very short term oversold conditions, we have gotten past and still in the rough period but yeah we have some -- the dip buying instinct didn't go away. we mentioned before, too this -- we keep talking about the different levels and 100-day average nobody talks about

we have been yo-yoing around it. >> let's hit bitcoin they got crushed amid the broader selloff. kate rooney with the details not acting like a gold safe haven. >> not quite the crypto crash today is about collateral damage. look at bitcoin dropping as much as 10% earlier and fell to around $42,000 recovered a bit since and the lowest level since august. ether, worldest largest second crypto currency. bitcoin as you said not quite holding up as a safe haven fears around evergrande and chinese markets jitters causing some in asia to sell crypto to cover positions and finally new regulatory focus on the crypto lending. coinbase said it canceled plans to launch a high interest

bitcoin lending product. back to you. >> thank you jonathan, the other market safe havens are doing well why the u.s. dollar higher yap nees yen higher. gold is higher places people go in times of looking for safety with fear on the street what do you recommend to clients? bitcoin not really doing the trick today. >> yeah. i'm not going to comment on bitcoin but i think that right now as much as you can go to the u.s. treasury or the swiss or the bund or japanese yen as a safe haven i think you're better off not running for safety i think that the unlying economics are fine the earnings fundamentals are fine you saw just like you talked about a moment ago that ultimately the market is beaten down and a lot of folks coming in from a bottom fishing here

and will get bargains especially for stocks displaced by this and i would actually see this as a opportunity if companies too expensive before buy them now. i don't think that tech is where i would be doing it. i would be buying it in the cyclical areas of the market, even financials that have gotten really cheap and still have decent fundamentals. >> to the point gold is bouncing today but still well below 1800. not taking off bitcoin down a lot again the safe haven that continues to work is yields. >> yeah. you saw the response. >> not extreme not like panic buying. >> it's been relatively contained in the range 30 years big rally there. flattening of the curve and seems whether there's a floor in yields or just means that people

didn't need to really grab for safety what i find interesting is almost a comfort to say before with the big nasdaq names are sold it does tell you that it's mostly people just wanting to raise cash the markets sniffing out a profound specific problem at the moment that does indicate that not so much indiscriminate but people raise cash where they can and the reason the market is declining the way it is because in previous episodes this year we had a rotation and cyclicals are blasted and people buy the nasdaq 100 they were overblown and overbought and so they weren't in a position i don't think to act as a shock absorber. >> dow down 615. we have rallied back more than 300 in the last half hour or so. quite a setup for the federal reserve starting the two-day

meeting tomorrow and nervousness around whether they start to lay the groundwork or potentially announce that they're going to scale back the emergency stimulus does this change the calculus there? >> if it does i would be very surprised and disappointed ultimately they're looking at the employment picture and inflation and things of that nature i don't think the fed has any gun to the head to be in a rush. obviously there's been a lot of indication that they will be moving towards tapering. hour house view is to announce nothing not this go around but in november. probably move in december. but from an equity point of view i don't think it really makes that much of a difference. only they do it right now the market's a bit agitated but they're probably going to do something between now and the end of the year and the market will probably be perfectly fine. so unbelievably telegraphed and

chewing on it together for a while. i want to highlight something mike said. if you look at the difference between growth and value they're virtually the same down today. if you look at small caps compared to large cap mostly the same 10-year bond yield not disorderly down but not in a way that would be concerning. nothing i'm seeing in those internals takes me overly concerned with the selloff it seems very orderly and broad based. >> less than a minute to go. mike >> i actually very lopsided. look at the volume split 90% to the downside. pretty close to pretty comprehensive flush. we talked about the 10-year yield. you can see it holding up in this rake. volatility rate. pull back not a big spike on the chart. >> just about 30 seconds to go

well off the session lows down now 2.25% why the dow was down 970 points. now down less than 600 points. [ inaudible dow down 1.8 pistons nasdaq down more than 2% >> a dramatic day of selling on wall street. closing well off the lows. welcome back to "closing bell. take a look at how we finished the wild day on wall street. the dow slumping at the open got as low as down 972 we saw that in the final hour of trade and then boom the buyers came back in s&p 500 down 5% from the all-time highs and saw a nice

recovery closing down 1.7% dow down 614 points. as far as the s&p 500 energy the worst down 3%. the nasdaq it was the hardest hit all day down 2.2%. beloved tech names sold hard amazon, microsoft, the big drags on the nasdaq 100. russell 2000 index down 2.44%. closing also at the -- off the lows of the day. lower of the big four. all in all worst day since may for the s&p 500 and could have been worse it was looking like the worst day since october. coming up this hour, a great guest to talk about the china concerns world bank president on the outlook for the global economy amid the new concerns of a slowdown in china and the chinese property market. on the selloff jonathan golob is

with us. first to you, mike big day of selling all the fears culminated today and a close that looked better than 40 minutes ago. >> unclear if that longer term is good or really wanted the purge twar the end my expectation is once you got extremely oversold midday tuesday is a thing you get fed drift into a meeting even though people are uneasy about what we will hear on wednesday. from the fed altogether to me it's continuous in seeing in september meaning a market that built up tremendous amount of gains. high exposure to equities across investor classes and seeing a wobble in that perfect row tags for now slowing backdrop of growth and policy sticky in terms of the next fiscal push and knowing what the fed will do and the debt ceiling

filtering that stuff you get the china push and makes sense finally i wish we had the 5% pullback at the close. >> not quite with that bounce late in the day do you see today as a buying opportunity? >> i look at the rates market and i would say that the market is concerned about growth. is it a buying opportunity i think we have a fairly positive growth outlook. i think this reopening, this recovery, it is going to be choppy and we would generally be in the buy the dips category i think the fed is a key market event because we get the dots and the fed continuing to talk to us about tapering so that might have to get past the fed meeting to see that the fed is indeed inching towards the tapering and the exit and watching that 2024 dot because the rates pricing and if the fed

comes in with dots to imply a faster rate i think there's concern to build up more in the markets rate and hearing it from equity investors that peak inflation is behind us and peak stimulus and so what does that mean i think that's the underlying fear that the treasury markets is living with that fear or has been for a few months and trickling in and want to hear from the fed how do they plan to exit and plan to calibrate the exit with the economic outlook. >> do you think anyone's worried about the debt ceiling and not passing anything in the u.s. defaulting on the debt it's always last minute and like this and political and then has to get done. >> right we have lived through so many of these events going down to the wire congress is not that irresponsible and they did -- everyone realizes the importance

of the debt ceiling but i think it's different this time because there's so much happening at the same time. there's a shutdown risk. two bills debated in congress and the democrats are not all on the same page. we have a big grift between the progressives and the moderates and not clear they can pass this through reconciliation we saw how painful that got in 2011 i'm a little nervous that we are a month out and we don't have a high baseline scenario they will extend the debt and suspend the debt ceiling but i think it will believe more than treasury bills that are -- really right now only treasury bills, the impact which an s a second half. only those seem to be impacted but closer to that date and realize there's no clear plan and boert sides are pre -- far apart i think it can leak into broader assets, as well.

>> do you think your clients altered the positioning over the summer moving sideways and will be ready to increase risk exposure again or were they fairly fully invested? >> i think that fully invested if there's a story there's been a rotation going on starting at the end of the first quarter when interest rates peaked away from the cyclical reopening trade back towards growth and technology and the -- if you look at the earnings projections, valuations it would tell you that the value stocks should win and growth is ripping. largely the catalyst is weakening interest rates so that's been really the story for clients and you asked about the view and much closerto these issues around the fed than i am but equity investors are rolling

eyes and just saying there's no way that this is going to -- we are going over a cliff on this thing and for right equity investors just are not paying attention and think it will magically go away and i think the end of the day might be turbulence in the profit but they will be proven right. >> how then do you respond to some of those worries out there about economic growth, to that we had seen the peak stimulus and now could be looking at -- i don't know, fiscal cliff might be dramatic but a type of hit to the economy when that wears off, the fact that this we have seen the best as it gets on earnings, the fed will scale back emergency stimulus and add up to we weaker growth? do you just not buy that >> no. normally i think that the per ma bear has an argument but on this

argument they have -- there's a lot to it. year over year government spending, defer sit spending is going to weaken as we sending out checks to people and we have already and things of that nature and curtail unemployment benefits and the like. what you need to see is that people are going to spend more of their paychecks to make up for the lack of government spending and also need to see that inventory restocking needs to happen again to make up for some of that shortfall on the government part of gdp if those don't happen you're going to have a much weaker economics. the atlanta fed puts out gdp now where they forecast the third quarter's gdp and went from a little bit over 8 to under 4% and that's a real big downdraft so i do believe we'll get inventory restocking i believe that the skumpl is

coming through but that threat is real and i don't think it should be taken lightly. >> mike, we got a little bit squeezed for time into the close but the vix jumping fairly significantly today. >> above 28 and roughly the year's highs from back in may. str if you look how it compares, it is a little upside down. soim times means the market is tensed up and maybe a buy signal but in the moment also that there's a little bit of pressure building up on the tactical side of things and want to see ultimately is a drop of 3 or 4 points from the high today and then all of a sudden looks like the other points on the chart where the fever broke after a selloff. >> we'll keep an eye on that thank you for your help. tech an underperformer

nasdaq down more than the other major averages and down around 2.2% let's bring in brent fill from jeffries always good to see you does it make sense to you when we talk about fiscal fears, macroconcerns, china property concerns that the tech names sell off >> yeah. i think so you had a huge outperformance. up 15% year to date. done better than most of the broader market if you think about tech you had a huge move in google, snap. it is okay to take a pit stop, a breather and i think they did need a breather. some multiples have gone into the stratospheric levels we have not seen in tech and again it is not over we think there's great stories that they do very well

we think again this is more of a short term pit stop than a change in trajectory where tech is going over time. >> a flip side is that many people have been worried the valuations to be pressured when rates go up. today rates came down. so again talking to the headline factors which is more significant to you, the kind of positive general sentiment to marks and growth or where rates are? >> i think more market direction. as rates go lower you have seen the assets do very well so i think it's a combination we are in a general holding pattern where valuations and many it can names have ripped. investors are looking for a better entry point any time tech is sold off the play book has said buy more and that's worked on a 1, 3 and 5-year basis we had incredible returns across

the group. we are not trying to defend the turf of tech but it is the right call and that's where the outperformance is. look at google up 50% to 60% year to date en credible moves. it is okay to take a break. >> what are the top three on the list to buy when you do see a better reentry point >> we like amazon, google and snap and then in software we have continued to highlight microsoft, adobe and intuit. i like the transaction with mule chimp. they have a great asset there. those would be three names on both sides we would like on software and internet. >> if things worsen in china even though it's stemming from the property market and not the tech market or at least this

week's news flow is which are the names to highest expose you or correlation to what's going on there that you would steer clear of >> many of the name that is we cover do not have any exposure to china so software and internet we don't have a u.s. based exposure with tremendous exposure i think as things suffered there perhaps investors felt more confidence with the u.s. market and it could build and strengthen the position for some mega cap names across our coverage but we don't have direct exposure to names that sell into china. >> good to have you here today >> thank you. we have got some news out of the energy space brian sullivan on the news with potential details of a deal. >> yeah. thank you. sources confirming to me that con cophillips is the winning

bidder for the shell in west texas. the deal at about $9.5 billion is the entire position of about 240,000 net acres. last production update about 193,000 barrels a day. we reported this news in june. shell is looking to exit texas production and conoco and others were poking around i can con if i were thatconoco phillips is the winning bidder there you go, guys on a day when energy fell and seeing the price of the stocks down shell completely leaving texas on shore production why they will have offshore and two biggest platforms are offline due to hurricane ida and exit west texas and stretching to new mexico and conoco phillips is winner paying $9.5 billion a very big oil deal.

>> brian, is this more because shell wanted to get out of that region and focus on renewables or because the region is just less attractive in general than it used to be? 9.5 billion price tag i guess suggests otherwise. >> all of the above. right? the european oil makers are under incredible pressure to reduce the carbon footprint. we have seen bp shift almost entirely to go to renewables in terms of new developments. o shell shrinking that footprint from u.s. production but they will maintain an offshore production at least for now with the offshore this is an onshore deal. assets by the way that are sort of tucked up nicely into conoco phillips other assets.

there is a play with okay dentdal. joint venture things and i don't know where production will fall out. occidental has a position and reducing the footprint shifting the mix of energy production more and by the way i can't tell you what they pay per acre but given 9.5 billion you can do the math. getting a good price far more than paid for it we have seen a lot of these -- this is the beverley hills of u.s. oil production and people are willing to pay up. >> thank you so much as always. much appreciated breaking news on an energy deal. investors of course -- >> maybe the first time compared to beverley hills. >> probably not. i bet brian has done that before yue nook comparison. investors of course have been on edge today up next, rosenberg founder david

rosenberg to weigh in and whether he sees more selling ahead. world bank president david mallpass on whether the troubles ripple through the economy we are back in a couple of minutes.

dow down 9 2 points at the lows of the day in the last hour of trade and then rallied back big comeback in the final minutes. only ended down more than 600 points david rosenberg joins us now you have been pretty bearish on the economy and this idea to buy every dip. we have heard that from a number of strategists do you feel differently given how you assess the global economic realities right now >> sara, thank you for having me on we really haven't had -- really since i would say october of last year there's not been many dips to buy but the point i was

making, i was saying that the vitality in the u.s. economy came down to vaccines and came down to stimulus checks and now the delta has frustrated the reopening trade. we have a situation now where we are having tremendous fiscal stimulus withdrawal. we were supposed to have infrastructure by now, whether human or physical. that's hit some snags. so there's lots of uncertainty and the problem or the challenge for the market was how it was priced and we went into september with the cape pe at 38.3 in february of '00 it was 31 and saying back then when you're priced for perfection we find out the world is not perfect but the reality is the higher you are the harder you fall. we have a 38.3 kpe multiple. only been as high as this or

higher in the dotcom bubble in '99 and 2000 i think that's part of the problem is that the market is extremely overvalued and i think that we're in a correction phase right now. i don't think it's the end of the world and this will be a correction to buy but the market is trading heavy now you are looking at the major averages but beneath the surface there's been tremendous erosion beneath the surface in terms of divergence >> true. true but you can also say about the valuation and the market that where's the fed balance sheet now? 8 trillion more? more than that never been there either. we are about to hear from jay powell who is always dovish. and everyone is would have -- worried about the coming taper

the federal reserve is still very much there. >> you know, the fed is there so to speak no question about it there's concerns that the fed might not be as friendly as it was previously that much is true but there's -- i don't remember in the classic on value investing a chapter there on the fed's balance sheet. but your point is well taken but they are signaling to taper whether it is this year or next year and the reality is the fed is not friendly to the market. at the margin the expectation is fiscal stimulus and then where's the runaway growth where's the roaring 20s that we were told about when you say buy

the market prem premised on the roaring 20s. when you look at the numbers because inventory and cumulation is a big part of q3 we could be in for flatter negative reading on real final sale just the economy is slowing down. looking at the numbers in china last week irrespective of the evergrande issue look at the production numbers out of china china at a risk of double dipping right now. the debt bubble that seems to be bursting on the property side. seen how that plays out before very difficult to contain. world's largest consumer of basic materials and why you see commodity prices unravel and all of a sudden the inflation narrative will morph into deflation. i would say 100% right that buying the dip has definitely worked for the better part of 12, 18 months but to -- it is

dangerous. >> based purely on the earlier point of valuations stretched if we talk about the s&p 500 nearly got a 5% pullback from recent highs today at the close what would be a decent bet for where this pullback could get to and still be a little bit expensive? >> the reason why the market came back later this afternoon let's talk about the s&p 500 because it was kissing the 100-day moving arch and support at the 100 day so when you tack about look at this a lot of it was just technical if we break below the 100 day and i think there's a good chance that will happen then you talk about the 200 day and then talking technicals here but in a market like this this is what

matters and the run-up isn't fundamentals why this came down to the technical picture so there's another 5% down to the 200 day. and then if we break that because it's all basically let's just take it one chapter at a time the contours of the market change jd there's a defensive rotation and weak ps beneath the veneer before the headlines coming down under pressure today. a lot of that was evergrande i was concerned before the news of china but asking me right now where would be a nice level of support to buy, i think this is more of a correction i look at 3800 on the s&p. >> 3800, some 550 points below where we are david, thank you so much for joining us. >> thank you. we have news on fedex. seema? >> hello shipping rates are set to

increase for fedex fedex express will increase 5.9% coming amid growing supply chain concerns, disrumgss at ports the changes go effect january 2022 not seeing any movement in the stock right now. >> all right thank you. up next, world bank president david malpass on the outlook for the global economy we'll be right back on "closing bell." bill, mary? hey... it's our former broker carl. carl, say hi to nina, our schwab financial consultant. hm... i know how difficult these calls can be. not with schwab. nina made it easier to set up our financial plan. we can check in on it anytime. it changes when our goals change. planning can't be that easy. actually, it can be, carl. look forward to planning with schwab. schwab! ♪♪

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major selloff on wall street hitting growth stocks especially hard fintech stocks among the biggest losers kate >> hey, investors today moving out of the high growth tech names. fintech no exception we had a firm as a biggest loser ending monday about 7% lower after a huge run-up for the stock and up about 65% over the past month some of the payment players lower today. take a look at square and paypal those two down more than 2% today. they are d recover into the close.

shopify, over the pandemic, down more than 3.5% today we had robinhood and sofi down around that level. coinbase down more than 3% crypto exchange trades in sympathy with bitcoin which had a rough day down more than 7% but the company announcing it is pulling a lending product after some new regulatory scrutiny back to you. >> thank you. all the major averages finished in the red. the dow having the worst day since july and may for the s&p stocks tumbled on fears of evergrande possibly defaulting on debt. for what this means let's bring in world bank president david malpass. it is great to have you, president malpass. thank you for joining us. >> hello good to see you. >> news of the day on

evergrande, how do you think about the potential fallout of a default for one of china's biggest property developers? >> you know, i'll talk a lot about the global economy as we look at it there's lots of fragility so i won't comment on one specific but as you think about it there's fragility in a lot of countries, there's still the vaccine shortage problem which is huge. there's inflation which is really hammering the poor and so you put together all of those problems and it is a world that's -- we call it a reversal problem. whereas we are supposed to be going forward in terms of poverty reduction and also median income, shared prosperity unfortunately we are going backwards and the world has to look at that and say how do we get moving forward on all of these topics.

>> i get you don't want to talk about evergrande but what about china in particular and the chinese economy? we were seeing hints of slowdown from covid and put in place tough measures to try to contain the spread now this worry what do you see for that economy this year and next >> after covid china grew rapidly and hard to tell whether that's a slowdown or an extended slowdown but we work with them closely on a number of topics important to the whole world one is the debt issue where china is a biggest creditors in the poorest countries and the vaccine issue where they're a major provider of vaccines but also trying to work with greater vaccine supply from all of the manufacturers around the world and climate change, of course,

is a big issue where china is the biggest greenhouse gas emissions provider our program in china is very operated world global public good and marine plastic where china has been a -- allowing them to flow into the rivers so i want to emphasize there's connections all over including through the economies that you are discussing today with financial markets. >> mentioning vaccines there, david, i wanted to ask whether you are critical personally of developed nations like the u.s. that seem certain to roll out booster shots at a time when much of the developing world haven't received the vaccinations or if you think that's a bogus criticism given the amount the same countries are doing to try to supply the emerging markets at the same time. >> there's good news and bad the good news is a huge amount

of volume of production from the advanced economies, talking about by the end of the year billions of doses that -- i chair a task force focusing on how do you get the vaccines to those that need them in the emerging world the advanced economies need to fulfill the donations they committed to and delivering -- accelerate the delivery schedules. the data of the task force show that is there's 2.4 billion excess doses that's coming online in the advanced economies. so the critical thing is to take the early delivery schedules and make them available to developing countries world bank has programs in 55 countries to actually do the vaccinations we can buy the vaccines but

there needs to be a releasing of the options and of the advanced purchases by the advanced economies so they're available for the developing world. >> do you have a date, a timeline for when you expect the world to be vaccinated, to get to a place where we can actually talk about variants not fortunatelyingand spreading an feel more relaxed about the situation? >> by the end of this year we like to see 40% vaccinated by the end of next year 60% or 70% vaccinated of the world but the challenge there is what do you do in october of this year and november and december? the countries need advance notice of which vaccines will be arriving and that's a big challenge. the transparency of the delivery schedules who we have called on the manufacturers to try to make

that more clear. we have data on the website of the task force to try to connect those but the reality of the situation right now is huge announcements of donations but the deliveries into the developing world have been small. only 2% are vaccinated. >> want to ask quickly about the doing business report which you canceled last week following an independent investigation by a legal firm into how that report was carried out. my question is just a pretty broad and sample one do you personally accept the f findings in that report? >> there were data irregularities brought to my attention rchs management's attention a year ago that date back to 2018 so there's an independent report that -- speaks for itself.

it is on the website done by an outside law firm by -- for the -- my board of directors so it speaks for itself and we have suspended the report a year ago and now we're making the point that we want to find the best way possible for countries as they work to improve the business climate so we'll be looking at new approaches to do that. >> kind of confirming it you can read it on the website david, thank you for joining us. >> thank you >> it was a big deal investors look to the reports to see whether to go into frontier and emerging reports lenar? diana? >> yes a mixed bag. reported earnings of $4.52 per

share. a strong beat of estimates but home building revenue at 6.5 billion, below ets mates of 6.9 billion. and lennar lowered the expectations due to constraints below wall street expectations of a little over 0,000 chairman miller said the industry as a whole continued to experience unprecedented supply chain challenges which we believe will continue into the foreseeable future and why 600 homes below the low end of the guidance and demand is strong and reflected in the 5% year over year sales growth and the highest quarterly percentage in the company's history driven by strong price, revenue increased 14% and cost per square foot 8% and community count ended flat due to supply chain challenges and delayed

permits. growth will be closer to 7% than the targeted 10% growth. back to you guys. >> thank you so much still ahead pfizer one of the few bright spotteds on wall street today after releasing vainine vig data on thcod cce children under 12 the details of that coming up. i wonder how the firm's doing without its fearless leader. you sure you want to leave that all behind? yeah. stay restless with the rx. crafted by lexus. experience amazing at your lexus dealer.

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♪ welcome back it is time for a cnbc news update with shepard smith. >> thank you from the news on cnbc, pfizer says its covid vaccine is safe and highly effective for children age 5 to 11 the company says it plans to apply for emergency use authorization from the fda by the end of this month. if the review follows a similar time line to previous aproouls elementary school kids could be getting the vaccine by halloween. according to the american academy of pediatrics children now account for 1 in 5 covid cases across the country. the united states will be open for travelers from abroad

the white house announcing today that noncitizens visiting the u.s. have to show proof of vaccination and a negative covid test within three days of entering the changes for early november the white house covid task force says this individual based approach rather than country based is the right move going forward. the fbi raiding the home of brian laundrie today saying they're gather ling evidence in connection with the disappearance of girlfriend gabby petito officials recovered human remains believed to be gabby laundrie identified as a person of the interest in the case and the whereabouts to this moment unknown. his parents filed a missing person report on friday. he returned to the home on september 1 without gabby and has been refusing to cooperate with the police. the fbi says they're still

actively searching for him tonight the latest outside the laundrie home and lei in wyoming where an autopsy is scheduled to be performed wednesday sara, back to you. >> all right thank you. we'll see you then shep smith. up next on "closing bell" mike looking at soons investors are starting to favor defensive stocks on cyclicals and hearing from an investment strategist who doesn't think that the problems of evergrande is a ris to china and the rest of the world. sportsradar popping as announcing that michael jordan will increase the investment in the firm jordan rang the opening bell at the nasdaq when the company went public last week we'll be right back.

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major averages closed significantly lower today. mike santelli looking at corporate earnings forecast. mike >> at first glance looks like a great trend. trending steeply higher. but they're flattening out around $215 a share. been that way for a couple weeks. revisions are curling over not as many companies have forecasts upgraded a little bit over 20 too manies

forward earnings that's not so bad. take a look at cyclicals over defensives from goldman sachs. point here is the market has already pulled in the expectations for how much of a cyclical earnings rebound we were going to get. peaked back in june. defensives and growth stocks have taken up the slack and suggest a lot less really accounting for that slowdown in earnings growth that we might have to do even though we had a rough one today in terms of prices below the surface. china fears spooked the market today the dow plummeting up next brakeaking down what th move could mean with andy rothman. we'll be right back.

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get started today. concerns about chinese property giant evergrande concerns of being a able to repay debts have people rattled. good to see you as always, thank you for joining us saw the first question i posed to jason earlier today, which is

to what of couextent is a big se to chinese based investors and how widespread is it >> i think to both chinese and foreign investors who have following china closely it's not a big surprise we have been tracking the problems for quite in some time and the government policies that put problems on those with high debt levels has been in place for a while now. it's not a surprise to the government or investors. >> you would think it's in the government's best interest to have a good solution, and to not take market value off of their education and companies as they have been doing. >> let's focus on evergrande, it's in the chinese government's interest to use tools to create an orderly restructuring and prevent the liquidity problems to escalate to an insolvancy

moment, the chinese government has the tools and said they are willing to use them. and keep in mind, it's, evergrande is not systematically important institution. it's a real estate developer it's 4% market share in china. >> and in terms of their recent clamp downs, in other areas do you think the chinese government will live to regret those, whether it is to make it more difficult to bail out companies like evergrande or the entrepeneur spirit >> i think they will not bail them out they will restructure it investors will take a haircut. the focus will be remember on an restructur restructuring, designed to make sure that individual chinese people a that put money down for

an apartment will get the apartment and those that invested in the company get their money back as well but they are not going to bail them out in the traditional way. more broadly, i would say, that for me, what the chinese government is trying to do is address some very wide, indeed, socio economic issues in china those that are like inequal access to education and protecting small companies from anti-competitive practices and i think big practices and protecting consumers they have gone about it in a much more dramatic way and they have done a terrible job of explaining themselves and communicating their objectives to us. for me the question is not are they trying to roll back entrepreneurs and capitalism i don't think it's the case. it's small entrepreneurial private companies that drive the job creation, and wealth

creation in chie-- in china. will they do it in a constructive way that does kill an economy that has been vibrant over the last several decades. >> is it yes or no, what is the answer >>odds are, they will do it well we have to be careful, we need to not say which consecsector ae going after? they are going after all sectors. how does it intersect with the business model of each company that we might want to invest in if they have a lot of workers and their they are not paying them a good salary if they are not getting accesses to benefits? if they are not cleaning up wastewater if they are using anti-competitive practices if they are trying to monetize data without the permission of

consumers. that kind of thing there's a way to invest smartly through the regulatory change. >> thank you for joining us today. andy rothman up next, the wall street look ahead big name earnings, we will break down what you should be watching after the break thanks for coming. now when it comes to a financial plan this broker is your man. let's open your binders to page 188... uh carl, are there different planning options in here? options? plans we can build on our own, or with help from a financial consultant? like schwab does. uhhh... could we adjust our plan... ...yeah, like if we buy a new house? mmmm... and our son just started working. oh! do you offer a complimentary retirement plan for him? as in free? just like schwab. schwab! look forward to planning with schwab.

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the earnings front, we will get numbers from fedex, adobe and aurora cannabis and more tomorrow, we will go through wednesday and look forward to any decision and in particular the press conference coming the from that. >> i mean, since the that last fed meeting delta has been a major force in our economy and in our lives and we knew that chair powell was worried about it, do you think that factored in to the bthinking >> it might be economic numbers have been missing on balance so, it probably is, the market figured it was not going to be a super hawkish message. but people want to get on with it what the market doesn't like is the sense that the fed is on

auto pilot and ignoring market stress >> can -- >> pretty good shake out, i looked at the etf volumes and s&p and massive, massive volumes. a good little comprehensive flush. probably have to retest the loans. >> do you call out turn around tuesday? >> i say it's a thing that exists >> it's a prediction he could get wrong tomorrow >> trying pin him down on something. >> out of money, a fast money starts now >> overlooking new york city's times square this is fast money tonight, on fast, we are charting the sell-off, one top technician lays out the levels to watch and tony dwyer seeing a big opportunity in today's pull-back, why today's weakness could be a set up for a break out and we are breaking down the banks.