it is 5:00 a.m. in new york city and here is your top five at 5:00. call it a week long whiplash, the markets nearing their worst week in more than two years. rates, the fed and vladimir putin the big reasons. down more than $100 a share. netflix getting crushed. and on track for its worst day in more than a decade. even worse, peloton. down 130 bucks in a year, and hit on a cnbc report about a possible production halt now the company is firing back happening right now,

secretary of state antony blinken facing tough negotiations with his moscow counterpart as russia readies troops on the ukraine border. another crypto crumble under way as bitcoin falls below 40k it's friday, january 21st, and this is "worldwide exchange" right here on cnbc good morning, good afternoon, or good evening and welcome from wherever in the world you may be watching. happy friday, i guess. i'm brian sullivan thank you for joining us let's jump in for what's been a busy week already. the stock futures are holding steady they are mixed we are seeing slight gains for dow futures. the nasdaq is what everybody is watching and their futures are down again off about one half of

1% all this coming off a poor showing for stocks on thursday markets did have some pretty good gains most of the day and then the sellers came in a lot of selling programs and we ended lower. the dow closing below its 200 day moving average for the first time since december 1st. the s&p and nasdaq down more than 3.8 and 4.9% this week respectably and that puts both indexes on pace for their worst weeks since october of 2020. here's a random but interesting state from truist's keith learner, a 5.5% pullback from the early january peak is now deeper than the sharpest correction than we had all of last year. we have done more damage in the s&p 500 in, what, three weeks than we did at any point all of 2021 wow.

thank you, keith let's check bonds because they have been a big part, maybe the part of the story, the benchmark 10 year yield lower this morning, down below 1.8%. later in the show we'll show you the impact that recent move is having on mortgage rates and i'll give you a hint, it's a lot. but right now, we've got u.s. secretary of state antony blinken, who is meeting with his russian counter part sergei lavrov following meetings in berlin earlier this week this comes as russia continues to build up its troop presence on the ukrainian border and president biden forced to clarify comment that is he made wednesday in his press conference let us listen in to this meeting between u.s. secretary of state linken and sergei lavrov.

>> we're very grateful for you for this proposal to hold talks in geneva in thecontext of the work started on the security guarantees >> translator: when you made the phone call to me and proposed that we meet to achieve greater clarity with regard to our concerns, we believed that to be a very -- >> you can see there the meeting between sergei lavrov and u.s. secretary of state antony blinken. let's go to bureau chief max

joining us thank you for joining us incredibly important meeting there. what do we expect to occur, if anything what kind of action may be taken? >> it's a miracle this meeting is happening at all because a week ago russia said the talks ran into a dead end so they didn't see any point in having any more meetings. and the u.s. is doing all it can to try to keep diplomacy on the table. but the fact is that both sides know that the -- what the russia is proposing is something that is unthinkable for the u.s. and its nato allies to accept. it's very hard to see where they're going to find any common ground on what russia is demanding. >> what is the possible best outcome of this meeting? >> reporter: well, this week russia has been a little more conciliatory than they were last week what they're demanding is

essentially rerouting the entire european security order. so the u.s. and nato would have to pledge to never admit ukraine, pledge never to expand in the direction of russia ever again, and to withdraw all their forces from eastern europe and more recently, the deputy foreign minister of russia, the lead negotiator of the talks we saw him wearing a mask next to lavrov just now, he said that russia would be willing to accept some sort of compromise where, for example, the u.s. would pledge not to vote for ukraine to join the alliance but there are other compromise solutions floated, such as say 10 or the 20 year moratorium on ukraine joining nato, which it's not going to do any time soon anyway, and russia has rejected that russia still saying this is not a menu, this is a unified set of demands and you have to accept them or you have to face the consequences and they haven't said what those are.

>> yeah, president biden being forced to clarify some comments he made in that press conference on wednesday about what might happen if russia were to go into ukraine. how close is this to an actual incursion, invasion, or perhaps an all-out war >> reporter: i think we're closer than we ever have been before, because even though these talks were happening, russia started sending more troops to the border they have 36 there, missile launchers within striking distance of kiev announced major exercises in the black sea and with belarus, they're sending units from the far east to the pacific ocean. the reality is, if russia moves towards open warfare, their air capabilities are vastly superior to ukraine's they can achieve a lot by using air strikes, not sending a

single soldier or tank over the boarder and there's not really a lot that ukraine can do about it. >> the world is waiting, watching, and hopefully certainly that is not the outcome. max seddon from the financial times. thank you for your view. we appreciate it very much we are monitoring that meeting between secretary of state blinken and his counterpart from russia thank you very much. let's get back to your markets and your money and check europe certainly their markets are not only been impacted by this but by the spike in gas and energy costs associated with this there's a lot of red on that screen behind you. >> it's a great big warning sign, brian. russia is one of those elements but, of course, the fed, next week's meeting, the rising rate environment, all of that is having a play on this. who started the selloff, was it the u.s., asia certainly europe is inheriting a

weak lead from asia. let's look at how the individuals have been shaping up so far in this friday session. thank goodness it is friday but not for traders. the ftse 100 down by .9. cac down by 1.3% spain has been the lagard, just regained a little bit of ground. in germany, that taking the lead if you like as the laggard some of the biggest winners and losers of the session so far particularly interesting is the story with siemen's what's happening is energy is off by 13%, it's cut its forecast this because siemen's has had supply chain issues when it comes to wind energy so that is really playing down it's dragging that down by 11%

and increasing calls for siemens energy to overtake that unit delivery hero, wise, all playing into the pandemic recovery story. we wanted to pick it out with what's happening in tech state side i'll hand that over to you now to talk about that more. >> a lot of red on the screen. maybe about 95% of those stocks are in the red thank you very much. all right. now let's get down to this morning's top corporate story and your biggest money mover and that is shares of netflix. they are getting slammed right now. we are not using that kind of language lightly netflix stock is down more than $100 per share right now. and it is now back to the same price level it was in the summer of 2018. in other words, nearly four years of gains, wiped out. everybody is pointing fingers this morning at things like weak

guidance and slowing growth. but is there more at work here these levels the stock could be facing the worst days since july of 2012. hard to believe it had a worst day. more on netflix. what happened to netflix >> well, brian, look coming into the q4, expectations were so high netflix had set the market up for growth they back loaded content to the back end of the year, things like "red notice" still craze around "squid game". on top of that, there was weak q 1 guidance, expecting 2.51 net ads, and then the content pushed out to later in the year remember netflix was a beneficiary of the stay at home play people stuck in lockdowns at home, binging on netflix, saw a big gain in their stock price

and users because of that. what happened is they may have drawn forward some of that user growth that perhaps would have come over the next one to three years. now those expectations are higher on top of that you have another element, competition management kept trying to play down the competition, the co-ceo saying the likes of amazon and hue hulu have been around for 14 years. but these are companies coming to the market with big budgets, you think of amazon with lord of the rings coming up, and coming up with quality content to challenge netflix in a bigger way than it's done in the past you see the companies making a dent for netflix and so the markets looking at now how much will netflix spend, what impact will that have on margin and can the company continue to grow the users throughout the rest of the year? >> that is going to be a very rough day for netflix stock

holders, down more than $100 per share. arjun thank you very much. now let's get to another big story. stock and a developing story and one that began with a report right here from cnbc let's send it to bertha coombs for the latest on peloton, another stay at home stock that is breaking bad this morning bertha. >> yeah. breaking bad is really an understatement, brian. shares of peloton trying to rebound in the premarket after falling 24% yesterday. on a report by our lauren thomas at cnbc.com that the company plans to halt production of its bikes and treadmills amid waning demand in all they saw $2.5 billion in market valuation wiped off the books by yesterday's close this morning's potential rebound coming amid several developments number one an internal note to

company employees seen by "the wall street journal. the ceo saying, quote, the information the media has obtained is incomplete, out of context, and not reflective of peloton's strategy adding the company has identify who leaked the information and is, quote, moving forward with the appropriate legal action foley's comments to staff come after peloton reported preliminary fiscal second quarter revenue guidance after the close yesterday saying sales should be in line with previous estimates. the company said it's also taking, quote, a significant corrective -- or rather significant corrective actions looking for new ways to slash costs and improve profitability, which could include layoffs and production adjustments yesterday's slide brought the stock beneath the september 2019 i.p.o. price of $29.

i remember being there for the i.p.o., as we were waiting for the stock to open. i commented growing up in my house we had a stationary bike and it was my mom's purse rack i think people now want to get back out there, out of their homes and they're moving away. there are plenty of folks devoted, but maybe there are just so many of them. >> if you're paying that, what is it, 40 bucks a month for your subscription, i guess you get on the bike and peloton doesn't care, they probably want you on the bike but once you stop paying that subscription, the bike to your point becomes a paper weight and you wonder how many people are choosing to do that and get back to the gym as the pandemic winds down >> yeah. and for a lot of folks, they are buying it now on the installment plan, they tried to make it so accessible, so you don't pay for the bike up front or the

treadmill. they pay month-to-month if they decide to send it back, they lose a deposit, but that's revenue that's going to be gone. >> that's been an absolute gut punch to peloton shareholders as well going back to multi-year lows bertha coombs, see you in a few minutes, thank you very much. let's expand and get more to the broader markets globally in this recent comes a warning from jeremy granthem, the boston based investor he said the u.s. is near the end of a, quote, super bubble following the massive stimulus during the pandemic. and lesays, get this the s&p 500 could fall 45% granthem adds quote we are in what i think of as the vampire phase of the bull market, you throw everything at it, you stab at it with covid, shoot it with

the end of kwan tayive easing and poison it with unexpected inflation and still the creature flies. a little bizarre but he says, that is until just as you are beginning to think the thing is immortal it finally keels over and dies. the sooner the better for everyone wow, must have been reading some ann rice lately. joining us to talk about this and more seema shaw, from principle global investors i don't know if you're a fan of vampire novels or jeremy granthem but do you see any way the s&p 500 falls 45%? >> hi, brian yeah, those were very strong words. we are not of that mindset we think things are going to become more challenging this year with the inflatiterest rat

hikes and inflation elevated but the thing that's key to keep risk assets going, you have to have the solid economic backdrop you need earnings growth, deliveries, absolutely key fra here when we look at the global growth environment, we look at the u.s. we feel quite confident we're going to see above-trend growth even this year >> so that would be a no you don't have to be wildly bullish but a 45% drop with all due respect to mr. granthem and his vampire metaphors, it seems a little out of the book >> it does we aren't anticipating returns as strong as last year, that's for sure but we are expecting positive returns that can be more modest but still positive there are going to be parts of the market that struggle this year this is where we need to think a

little bit more about what is driving the market, what are the key concerns and challenges, where are they coming from when we think about it from that perspective, the emphasis becomes more on quality, a little more defensive but more on quality which are the companies that have again the strong balance sheets, positive cash flows which have the earnings delivery and the business models that continue to perform even as the conditions become more and more difficult over the coming years. >> do you see the market rising this year -- and i'm speaking about the u.s. macro stock market forget about a 45% drop we've established that a no. do you think we'll make gains this year or will it be a year of very muted returns after what has been a number of good years? >> we are going too see gains, but they're not going to be as high as last year. the other thing to consider is there's going to be a lot of volatility so i expect a lot of headlines, which are going to be at moments

quite frightening, but we have to keep a view on what are those underlying fundamentals and take a longer term view, because that's going to be key otherwise investors are going to be whip sawed here and there and you could lose out on potential gains by stepping out on the market at some of the worst moments. >> where's the best place to put any new money to work right now? emerging markets, is it the u.s., is it somewhere else >> we continue to like the u.s. because of that more quality defensive area we know that big tech is challenged, clearly. but we do think there are opportunities within specific sectors. maybe more cyclical but the growth value, style, questions, it's really about focussing on the company fundamentals >> principle global investor's

strategist sheeema shaw. we appreciate your vies. happy friday have a good weekend. we will see you again soon. >> thank you. >> thank you all right. when we come back here on "worldwide exchange" we have much more on netflix and why our next guest calls it nothing short of a disaster. plus, did somebody know something ahead of time? jon najarian is here looking at some unusual and, shall we say, very timely options trades in peloton. before that, is a big time baby boom on the way morgan stanley on some new super urends that may be headed yo wa stick around you want everything to be on autopilot. and to be prepared if anything changes. with ibm, you can do both. your business can bring data together across your clouds, from suppliers to shippers, to the factory floor. so whatever comes your way, the wheels keep moving.

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welcome or welcome back and good friday morning. and if you need some, here's a little good news a new report from morgan stanley says a new boom may be on the way, and it will be driven by a couple things, like a big increase in pay and maybe a baby boom we have a recent report on new mega trends, i love the report vijay, i read it with interest, thank you for coming on the program to talk about it we need, as a nation, i think a little good news let's start one of the major themes that you see. i know there's inflation i get that, but overall, there's some

major wage gains happening in the united states. >> absolutely, thanks, brian and so what we highlight in the report is really two factors that we think contribute to a multi-year trend that's positive for the u.s. consumer. the first is where you started, strong wage gains creating one of the strongest financial capacities to spend that we've seen in u.s. households perhaps in recent history. the second which is closely related is demographics. as millennials age through the population, that's going to create opportunities for those sub sectors that have exposure to that spend. i want to make one caveat in the near term as we think about the next three or six months there's a lot of noise out there we're going to have a rebalancing in the consumer away from goods and stay at home winners. if we take a step back and think about what the next several years look like, households are in strong financial shape, we

think that leads to a multi-year mega trend in the u.s. consumer. >> what's that going to result in is that going to result in people getting on planes, going to vegas, buying new clothes or, d, all the above >> i think it's a combination. as we think about 2022 and the next several years i think the near and intermediate term are opportunities for travel and leisure. we have the pent up demand when hopefully we have a real reopening in the economy next year we know that millennials prioritize experiences over things so that should be re supported for several year but we have retiring baby boomers who should benefit from a strong wealth aspect two other opportunities we like specifically related to millennials, companies facilitating commerce in a way millennials want to be engaged, the companies that drive the

infrastructure and platforms for digital and direct to consumer the third area we highlight as a potential opportunity and that is housing p we have a tight housing market today. we think we could have several years of demand as millennials continue to age and that should be constructive. >> let's talk about that because millennials, the older ones, they're not kids anymore some of them are nearly 40 you live in a one bedroom in manhattan, you're feeling pretty good you're married then you buy a three bedroom house in the suburbs, i'm speaking from experience and then you know what you do? you try to make babies and you build a family to fill up those bedrooms one of my predictions this year, i want you to comment on it, i think we'll have a baby boom, whether it's the pandemic, lockdown love or whatever you want to call it. i think there's a demographic shift and a baby boom for years. i read that in your report as well do you see a lot of little ones

on the way, which will drive spending because when you have a kid, as our viewers know, you spend a lot of money. >> absolutely. a great point. if we think about where we are, the oldest millennials turned 40 in the pandemic. millennials are 80 million strong we've seen household formation pick up. what happens after households form you see births rise i'll say, we know throughout the course of history, folks in their 40s and 50s tend to be the highest spenders so as we have the first millennials entering their 40s we could have a decade or more ahead of us where we have a tailwind for consumption democrat demographically. it's been a while since we've said that, going back to the 1980s or 1990s. >> vijay, we like it, a baby boom, spending boom, feels like

the roaring 20s, maybe two years delayed, are finally starting to get here have a great weekend. >> thank you. off the rails, why shares of rail company csx are coming loose, despite a fourth quarter beat stock futures are mildly in the green for the dow. fingers crossed. options day as well today. we're back right after this. ones about life is that we keep moving forward. we discover exciting new technologies. redefine who we are and how we want to lead our lives. basically, choose what we want our future to look like. so what's yours going to be?

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good friday morning for everybody but netflix investors. that stock down $100 per share as it sends out a big warning. >> two years ago we were 10 million above plan, which was a shock, you know, last year we were 10 million below. we're 9 million. and so, the pull forward sort of makes it hard to read. plus crypto crumbling, bitcoin dropping nearly 10% in the past 24 hours, back below 40k. and how treasury secretary janet yellen sees a path to slowing inflation, but is she right? it's friday, january 21st, and this is "worldwide exchange.

>> welcome or welcome back and good friday morning, everybody i'm brian sullivan, grab another cup of coffee, there's a lot going on right now let's jump into the your money and stock futures. we are not seeing the selling that took off late yesterday, at least not with the dow dow slightly higher. nasdaq, big tech runs the show we get that, nasdaq futures are down just a touch, a couple of tenths of 1% not a huge trend today one thing i want to note is that today is a big-time options day. there is a lot of options in stocks like tesla and the macro markets we'll get more with jon najarian in a few minutes. with this, what they call the gamma trade, a little complicated, but could see --

could not saying we will but could see a lot of volatility in today's session, just something to pay attention to. also this, a big warning from a big-named investor. in a note to clients jeremy granthem says stocks are in what he calls a super bubble and they will crash he says that right now is only the fourth time that we have been in this kind of a bubble. he names 1929, 2000, and 2008, and sees a 45% drop in the s&p 500. do you agree with him? let us know what you think bonds not necessarily reflecting doom and gloom unless you count ininflation as doom on the market ten year yields are lower right now just below 1.8%. let's take a look at mortgage rates. i'm guessing most of you watching or listening are not

professional bond traders. but you probably do either own a home, want to own one or have some kind of debt. and interest rates, they are on the rise and right quick this is from mortgage news daily. the average 30-year fixed rate mortgage loan has jumped a full half percent in just three weeks. it is up nearly a full percent from its lows of just last summer and with the moving yields, that is likely to keep going higher something to keep in the back of your noggin there. speaking of housing we'll talk about that more in the next couple of days as well let's move on if we can. we certainly can here. we continue to watch action in crypto, down sharply this morning as bitcoin hits its lowest level since august, trading below 40,000 bucks a lot of red on the screen with the big ones ether, lite coin all down.

some of the smaller ones have done well but the big name ones have been falling and falling hard to start the year. let's get the top corporate stories bertha coombs is back with those what is on your watch list, bertha >> let's start with intel, the chip maker announcing plans to build two new chip manufacturing factories in ohio, outside of columbus the company will spend at least $20 billion to build the plants that will employ about 3,000 people it marks the largest private sector investment in ohio's history. production is expected to come online there in 2025 intel's ceo will join cnbc live at 8:15 eastern this morning you'll want to watch that. meantime, tiktok is testing a paid subscription model. video creators would be able to charge people to view content.

earlier this week, rival instagram announced it was trying out its own subscription service. and treasury secretary janet yellen is defending president biden's economic record one year into his term. and on the hot topic of inflation, she said there's a path to slower levels. >> if we're successful in controlling the pandemic, i expect inflation to diminish over the course of the year. and hopefully to revert to normal levels by the end of the year, around 2%. >> brian, back over to you >> as i tweeted last night, i will take the over on that 2% number with all due respect to the treasury secretary and former fed chair yellen.

it seems hard to see how that's going to come down no prices have come down in the last couple of months. we'll see what happens bertha, thank you. now to this morning's top story and netflix that stock is down more than 20% or $100 a chair right now and back to trading levels not seen since april of 2020, in some cases back to 2018, wiping out four years of gains the company announced it pulled in 8.3 subscribers but that's a low down from the 8.5 million from last year and also issued a disappointing first quarter outlook. saying last night, because of the number of signups at the beginning of the pandemic, subscriber growth is getting more difficult to predict. listen. >> two years ago we were 10 million above plan, which was a shock, you know. last year we were 10 million

below, or 9 million. and so, the pull forward sort of makes it hard to read. you know, there's a number of, you know, potential explanations in covid but then we worry about hanging too much on that there's more competition than there's ever been but we have had hulu and amazon for 14 years. so it doesn't feel like any qualitative change there >> let's bring in joe kalina head of technology and media training at web bush securities. joel, the numbers weren't great but they didn't seem like they were a disaster. does the stock deserve -- maybe deserve's got nothing to do with it as they say, but should the stock be down more than 100 bucks a share, right now >> what a day, right arguably yes you're seeing it in other names as well. netflix is square in that bucket, look at peloton, you

guys broke the story yesterday d docusign, zoom, netflix is no different. the guide missed by a mile the concerns, listening to reed hastings one of the most accomplished ceos of our generation he doesn't really -- he's admitting not only the competition forces finally creeping in, but he also said it's tough to pinpoint why acquisitions are slowing usually you expect confidence from them and clearly they are struggling with kind of uncertainly around churn trends, what the competition is doing as well that's a big issue netflix you can argue is turning into a low double digit grower and that's pressing the multiple and the valuation and that's the biggest issue for the stock right now. >> but you just said it, it's still a grower this is not a company that is in decline. this is still a growing company and i get it, it's not growing

anywhere near the pace obviously investors wanted or the multiples commanded, but it's still growing. why have investors given up on netflix? >> it is the story of tech the past several months. clearly the number one headwind is still the withdrawal of the unprecedented amount of stimulus thrown at the world economy because of the global pandemic we're sighing that process kind of unwind right now and netflix wasn't cheap, trading north of 45 times earnings. we know their content slate is still king of the hill but again, people want to see more, and clearly costs are facing inflationary pressures in terms of producing content they didn't touch much on gaming p. that remains an area of focus for part of the growth story we know looking at actors from earlier in the week that's going to take a lot of money if they expect to become a real player

in gaming as well. and the operating target came in 300 bases points below the street as well there's a lot of moving parts, and i think right now stock is dead money because i don't see a catalyst in the near term until you see a return to growth of subscribers. hopefully in their more developed regions, which come with a higher rpu but it does feel like we're getting the point of very extreme saturation in the key markets of north america and western europe >> yeah. that average revenue per user. they're raising prices so looking to add to that but that stock a brutal story in the last couple of months. today no difference. we love your insight as always thank you. i know you're going to have a busy day we'll get let you get to it. appreciate you. >> thank you >> thank you, you're welcome down more than 100 bucks a share. coming up your morning big money

movers including shares of peloton on a wild ride dr. j is here to lay out what happened in the options trade ahead of it. and the morning rbi with the massive numbers goldman sachs sees around the work from home trend. you won't believe some of these figures. dow futures are mildlyigr. hhe nasdaq down a bit. we're back right after this. each day looks different than the last. but whatever work becomes, the servicenow platform will make it just, flow. whether it's finding new ways to help you serve your customers, orchestrating a safe return to the office... wait. an office? what's an office? ...or solving a workplace challenge that's yet to come. wherever the new world of work takes your business, the world works with servicenow.

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friday there are blackouts during earning seasons. so today you get a bonus rbi today's most random but interesting thing is about the pandemic and productivity and how the american work economy has changed so dramatically for millions of folks who are lucky enough or able to work from home it's important to remember that. as much attention as work from home gets it's still probably only about 20% of the american workforce. it's still enough to make insanely big changes to things like productivity and the use of capital. goldman sachs out with a note saying the changes to the american workforce and business model may be bigger than you ever imagined. look at these numbers. goldman says the shift in how we work has resulted in, 600 million fewer hours commuting every month. that is 7.2 billion commuting hours gotten back every year because people are trading jobs up for better ones, there may be

a need for nearly 1.5 million jobs and things like cashiers, in-person sales people and office maintenance staff they go away as more people move up in the workforce. and when you work from home no doubt you have a lot of computing power. goldman sachs said that could equal $300 billion in consumer i.t. equipment and get this, an incredible 900 billion worth of home offices now set up for business use in other words, the stuff that your company would buy, now you're buying. think about the implications of that even if it doesn't last forever, companies can have huge savings on things like real estate, they don't have to buy as much i.t. gear because now you've got it at home, and you are saving hundreds on gasoline or commuter train or bus fares and getting hundreds of hours of your life back does that sound like a win-win

to you probably does. and maybe, just maybe, corporate america might reluctantly agree to it as well. we'll see. some big numbers hopefully random but 'lbeig bk.g. wel rhtac feel stuck with your finances? move your money to sofi and feel what it's like to get your money right. ♪ ♪ ♪ ♪ move your money to sofi. you could earn up to $2,230 when you download the app, and feel what it's like to get your money right.

good friday morning. it is 5:50 we want to give you a check on futures after what's been a rough start to the year for markets. dow futures holding steady, up a

touch. nasdaq down .3%. there's a lot of options expiring today we'll get more wh n jaanitjonari right after this stick around healthier starts when excuses end. what? it's too windy. right now at cvs, get $10 in extrabucks rewards when you spend $30 on select wellness support products. with this offer, there's no room for excuses. ever wonder what everyone's doing on their phones? they're banking, with bank of america. his girlfriend just caught the bouquet,

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welcome back it is safe to say that the stay-at-home trade, like elvis, has left the building. as the pandemic seems to be winding down, hopefully, fingers crossed, so is the pandemic related trade. names like netflix, zoom, docusign and others have been dr creamed. peloton too. options traders made some big time bets on peloton, some of them very well timed let's bring in our friend jon najarian, cnbc contributor i guess sometimes you get it right and get lucky. but there were a lot of options

trades on peloton right before the news broke >> yeah. exactly right, brian lauren thomas, cnbc reporter, did a great job ferruteting out some information about the reduction or stoppage of treadmills or bikes for a period of time because inventories were just too large and inventories of options started just exploding, brian, just 15 minutes before the halftime report came off the air yesterday we noted there was a huge build of put buying puts are, of course, the right to sell. and that was with the stock at 31 bucks within a heartbeat it was $26 and then 25, 24, 23, you get the idea the puts went deep in the money and millions of dollars were made on that drop by the people that had that information early, brian. >> yeah, i mean, pretty

spectacular options trades maybe well timed, i don't know i will be fair and say this, the insiders at peloton, ceo and others, have been selling for months as well dumping hundreds of millions of stock. >> yep and when you've got that going on and speculation that demand is down for the coat hanger and the closet, which peloton bikes like nor dy track before them. that's what they've become if people are going back to the gyms and work. then those devices aren't nearly as much in demand and perhaps secondary market they're being sold on craigs list or whatever, br brian. but that was well timed activity yesterday and more or less triggered the market it seemed the margaret rolled over like that as that news broke because people decided to pull back. we had a very nice rally under

way, as you've been saying all morning, and that just vaporized. >> talk to us about the overall set up i was reading on sites, john, about there's about $100 billion of notional options due to expire today, like tesla, kra think woods' ark do you think there could be more volatility in the equity market because of that? >> well, what i was really watching, brian, yesterday was the volume of stock and options trading. and seeing whether or not on a rally that we had up until noon yesterday, that -- whether or not we would see that volume build, because the last time we had a pretty significant rally, the volume was just not there. the volume was building and to your point, out of the money calls and puts that expired

today, definitely a lot of speculation there. then when we rolled over the volume exploded and we got to nearly 50 million options contracts from an average of about 43 million to us that says that speculation is fading right now and hopefully a bounce is getting close, brian >> maybe that's what caused a lot of the roll illty we saw this week was people positioning equity on the back of their options positions and sort of hedging that jon najarian, always love your insight. super valuable my friend have a great friday and a good weekend. thank you. we've talked about it a lot, options, market structures, a lot of options trade expiring today, maybe this week's volatility was because of that who knows it's friday. we have a lot more great coverage coming up nasdaq futures down just a bit i'll see you on monday have a spectacular weekend

take care.

good morning, u.s. stocks on track for the worst week in more than two years, as we saw yesterday. those early morning gains not sustainable. tech stocks continuing to tick lower even though yields backed off a little netflix shareholders may want to ask small children and pets to leave the room the stock plunging overnight, like 20%, after streaming acknowledged that competition is cutting into subscriber growth it's back to 2018 levels and bitcoin tumbling back below 40,000 which is supposed to be an important level with about $147 billion wiped out in th