the report, and, adam, there is indication this release maybe was not on purpose. >> well, it's not a good release, and when you go through the numbers, you know, third quarter nongap share of 9.3 is down to third quarter of 2011 at $9.72 #. on revenue of 11.53 billion, fingers pointed at the acquisition of motorola mobility. at the end of the day, third quarter income down 20%, and their share price, while up over the last three months, 18%, it's halted today, and we saw the plunge when the report came out pending, a line in the filing that says pending a statement, a quote from mr. paige. we'll have the conference call at 4:30, but perhaps some kind of statement from google within the next few minutes before trading can start again. >> all right, adam, thank you.

bringing in an analyst to get take on things, ken marlin of marlin associates. address the issue of the midday report. what do you think of it? was it on purpose? >> i have no idea. i certainly saw the announcement pending a quote from larry paige. it certainly suggests that the report was not ready for prime time, but i think we're going to have to wait and see what he says. >> at the end of the day, doesn't change the fact it was a big miss. what do you think of that? where do you see the problems coming in? >> you know, such are the trials and try bylations of being a public company which is what google bought when it decided to go public. i'll remind you this is not the first time earnings have disappointed. in january of this year, they disappointed too. there, it was about advertising prices and the revenue they got

per click, but meanwhile, they continue to rocket forward, and let's not forget apple was slammed for missing back in july, and they are just fine. >> the consensus of $10.65 to $9.03. that's a big gap. did they not guide properly? surprises in the quarter? what's the first question on the call, ken? >> well, clearly, it's a huge gap, and you're right, there's one of two things that's happened. either they didn't guide properly or they hugely missed something and my guess is that they have humanly missed something. they are good at guiding their pros at what they do, and so my guess is that they were guiding to write what the answer would be, and there's been a surprise. unfortunately, we have not

gotten any detail yet so we're all waiting. >> talk about particulars, though. our correspondence mentioned acquisition of motorola, and there's the increase in competition in the smart phone market, a player there, can you comment to those issues? >> well, i know i think everybody loves to speculate the absence of information so, you know, i can wildly speculate with the rest of them, but the truth is, we don't know, and it's a surprise. >> a stock down 9%, obviously halted right now, but begin what you know, do you think that's a buying opportunity? i mean, it's a big decline. >> well, i think it's a buying opportunity. i think that it's a solid company, top line growth keeps out performing when you look at it year over year opposed to quarter over quarter, and also when you talk about threats, you know, thus far, there's not a credible threat in their core advertising markets, and android is doing better than anybody expected when you look at it.

big picture, not talking quarter to quarter. same with youtube, doing better than what people gave it create for a year ago. whether motorola will be a great success, we shall see. >> a bigger story in tog? consolidation going on across the sector, ken? >> we think there's been consolidation going on for a number of years. we think the consolidation will continue to go on, but we think google is the winner in the technology. yes, that's technology going op, but we don't think that's what's affecting the google earnings. >> what do you think -- if this release came out too early, what's the scenario on that. how do you think something like that happens? is it google's fault? does it undermind confidence in them or have to do with the way, you know, documents are filed? >> somebody messed up. we'll find out who messed up, and whoever did will be whipped

and punished, but, you know, sometimes people make mistakes. >> we are getting a lot of reports, the jobless data's been squirreling. we use that word to describe it, and now we have earnings reports that the numbers are likely trust wore think, but the -- trustworthy, but we in the media, the way we get information is disorganized lately. do you get that? >> i thought funny was a good word. some is fairly amusing. i think there's a big difference though, and in the economic data , there clearly are politicians who want to take this set of numbers that makes it their point best and focus on that set of numbers, and there are clearly different ways to interpret the economic numbers, and i actually am a fan of jack

welsh and agree with welsh's premise that the current unemployment rate reported is totally bogus. i don't agree with the suggestion that the administration manipulated or caused to be bogus, but anybody who looks at the economy, understands that the actual unemployment rate is a lot higher than what is being advertised, but that's a result in part of the way in which statistics are calculated. >> no doubt. another question on google before we run out of time. what else will you ask on the call? what's the three most important things you look for as we dig -eeper into the results? >> we're looking at two things. we're looking at top line. we're looking at, you know, you know, what are the the drivers p top line growth, and do we believe those drivers are sustainable. right now, there's nothing to believe there's anything slowing down corp. top line advertising growth.

what's happening with youtube, bullish on the opportunity there. what's happening with android. we're bullish there too. yes, we want to know what's going on, but if that's the cause of the miss, that's good news. that's fixable. then we're trying to understand what we call conversion rates. how much of the incremental revenue dollars are converted to profit and right now, two version rates that are phenomenal. we're still bullish. >> thank you for spending times with shedding light on a story breaking a moment ago. google shares plummeting before being halted as they continue to be right now. that's right. we are headed back to the new york stock exchange for the latest on that, and we'll keep track of the situation. the stock halted. >> halted at 9% decline. there's a look at the dow, virtually flat now in reaction to economic data, as we call it,

squirrely. wall street doesn't seem into it. not buying it. what's up with the wild swings in jobless claims? digging into those numbers. let's check metals for you. here's a trade op that as we head to break. gold down nine bucks today.

>> number of americans playing for unemployment last week shot up by 46,000 from the week

prior. why the sharp reversal? peter joins us from washington. >> the labor dppt contributing the jump to seasonal and technical factors involving one state in particular, numbers rebounding from a low level the weerk before, a four year low that raised eyebrows. economists blamed california for the drop saying it was having issues processing unemployment claims armed the start of the 4th quarter, october 1st, but economists predicted a big bounce back for the numbers today as the state caught up with processing applications. now, there were cries about possible manipulation here with labor department numbers, but a former bush administration official talked to says he does not believe that the civil servants, the stay tigses, the professionals at the labor department manipulate the jobs data, but said top officials

there right now need to be especially careful with the numbers in this election season. >> the data you are accountable for as a political appointee is so sensitive, not just to the markets, but elections, you have to have a higher standard of accountability in terms of what you press the states and and what you hold your team accountable for. >> next big number is the important october jobs report that will be released friday, november 2. melissa? >> peter, thanks so much. >> what do the economists make of the wild swings in unemployment? here with the read is john sylvia from wells fargo. what's your take on the reading of the claims? numbers normalizing? california was likely the missing state, moves average, what's the take? >> i think peter got it right. there's a lot of volatility on a

week to week basis, especially at the beginning of the quarter when states, like california, have to reestablish eligibility to the program. as you suggested, most economists have a moving average to judge where things are going, and for jobless claims, they are going sideways, but there's a downward trend, but pretty much jobless claims are where they are. >> jobless claims are where they are. >> yep. >> you wrote great unemployment debate in reference to the september unemployment report, and your bottom line is that the unemployment rate is a result of the markets and government talking past each other. what do you mean? >> well, i think when the, again, the bls releases data, as was suggested in the interview with peter, there has to be a certain level of accountability, but also, i think, awareness that when the bls puts october the number, they should have been and probably were aware that you realize this number is

quite a jump, and it's right in front of the election. perhaps, i suggest, bls in the future when they see something like this, they come out with a stronger statement explaning a little bit of the details of what's going on. as far as the private sector goes, they need to understand this is a very small sample. there's a lot of system variability with the number. it's just 60,000 people in the survey. there's a little of a challenge there. as for the, you know, politics, senators and congressmen, you want a better survey, give the bls money, and they can make a bigger survey. >> that's the first time i heard a solution be provided. thank you for that. >> thank you. >> how are the latest jobs numbers impacting the campaign? obviously, we're barely weeks away from election day. >> well, i think the challenge is looks like the third quarter gdp is 1.5%. fourth quarter around the same, perhaps less.

seems like there's an economy that continues to grow at a sub par pace of growthment i think the challenge for the candidates is how do we get it from the 1.5 or 2 at most to something higher? because we had 2% growth on average for three years in a row. i mean, this is not an abnormal situation anymore. it's what we got, 2%. how do we get to 3? that's the challenge to put forth an agenda to get the economy going on. >> john, october unemployment stay before 8%, the last report before the election? >> trend has been, lori, as i wrote in the report, each fall between august and novemberings the unemployment rate declines. again, it's a seasonal quirk. it's something in the data that needs to be worked out for different reasons. my suspicion is the the answer's yes. >> thank you for that. >> breaking news as we said on google. nicole's on the floor of the new york stock exchange.

shares still halted there? >> yeah, we are following the company, google, not traded here, but at nasdaq. trades are halted news pending. what do you think of the numbers? what do you think about the lunchtime -- >> it was google, but google released them to the scc, an ak filing, to the website, public knowledge. evidently on top of everything else, an incomplete filing. they hit the send button, a fat finger or a click cliff, whatever you call it, but it's not pretty. the delay right now is a company has contacted the regulators saying don't trade it. we have to straighten this out because they know they have a problem. they surprised the market with not just the fact it was a surprise, but it was -- it was -- we don't know if the numbers are right. we assume because there's a

government filing there's something to them. the question is how much more do they need to say. that's why it's halted now. >> interesting appointment. you heard ben say we don't know if the numbers are 100% correct. it was interesting at the top of the filing according to the "wall street journal," there was a line that said, quote, "pending larry quote," and maybe that suggests this was released inadvertently. the stock, a cliff dive there. for the stock reaction, do you think that's not merited or a merited move, 9% to the downside right now when halted. >> based on the numbers, absolutely. it's a human miss, absolutely enormous miss no matter how you look at it. that justifies it. whether there's something else to add to the numbers themselves, from what we know on the trading floor, the filing to the government was incomplete. that portion should not have been sent. it's not that the government made something public that should not have, the filing,ist,

should not -- the filing, itself, should not have been sent. we'll see how good they manage it. >> right. there's a lot of manage here as far as the stock, the release here. it's probably a good idea they halted this stock here; right? >> yeah, well, the nasdaq figured out how to do it the way we do it p on the. >> oh, i think that hurt. back to you. >> thanks so much. going to adam now with more breaking news on the google story standing by in the news room. adam, what do you have? >> it's the quote we are getting about this statement on the earnings releet, quote, "this morning, the financial printer informed us they filed the draft earnings statement without authorization. we have ceased trading while we finalize the document. when it is finalized, we'll release earnings, resume trading, and hold the call later today at 4:30 eastern." >> that confirms what we talk

about saying this was a mistake, and, in fact, if you look at the fcc filing, it begins the way a normal filing saying mountain view, california, the date, google, the ticker symbol, and a blank spot in all caps saying "pending larry quote," a space where they want to put in a quote from larry paige. now, if you want to try to laugh at a time like this, and it is a sign of the times, there's a new twitter account already @pendinglarry. a sign of the times. they grabbed up the name as soon as it happened, and the quote, and the first thing -- there's a quote there saying "first thing i said after the fcc filing went out was oh schmidt." >> clever. >> already, a twitter account, and jokes, and stock halted. we have not recovered from this thing, but in social media -- >> sounds like they pushed send inadd veer tently too early.

simple as that. charlie joins us straight ahead on the latest of mf global's jon corzine. >> the latest on the wildfires after homes evacuated, and finally, look at how the dollar %-on today.everything else going keeping you on top of the currency as well. down against most everything, the yen, the euro. we'll be right back. [ male announcer ] how do you help doctors turn billion of bytes of shared information... ♪ into a fifth anniversary of remission? whatever your business challenge, dell has the technology and services to help you solve it.

>> breaking flews now, google issuing a statement on the early release. let's go to adam in the news room with that. >> as we first toll you a few minutes ago, google pointing the finger of blame. heist the actual quote. "earlier this morning, the financial printer informed us that they had filed our draft ak earnings statement without authorization. we have ceased trading on nasdaq working to timize the document. once finalized, we'll release our earnings, resume trading on nays -- nasdaq, and hold the call as

normal at 1:30 pisk, 4:30 eastern time." >> that blaming the financial pt for filing without authorization. company trading down, but nothing like google down 9% here. the guys trading down by 3.9%, and you can see google there. shares are halted. still halted, but down better than 9%. >> making a big deal about the nature of this release that it clearly was a mistake, but the headline is the huge miss by google, missing on the top and bottom lines. shares were about double in terms of volume, average daily volume before halted. looks to be halted the rest of the day. >> warning that the release was not finalized. we'll see what it looks like. >> a big spot for larry paige to comment. >> one other point when you talked to me, the market had no

idea this was coming. >> clearly. >> traders go nuts on surprises, hit the button. >> one year anniversary of the implosion of mf global. it's here so far though, no arrests, no charges, but investigation continues particularly in congress. where are we with this? >> interesting story. as you know, no -- probably no charges against jon corzine. i believe the civil charges prevent him from running a hedge fund registered in the united states by the fcc. that said, multiple invest -- investigations going on. they are putting final touches on the inquiry and report reviewing 240,000mf global related documents. what ri -- what they are doing is putting it in draft form. release before or after the election? we don't know. i don't think they know.

it is expected soon. that comes as the cftc, taking the lead in the investigation, and the justice department, are still interviewing mf global executives. this is the game plan. first comes the comet's report. it's coming weeks is a safe bet, but unclear -- looking for political bang, more before or after the election. focused on the election or get a push because, remember, jon corzine was an associate of the president obama, a wall street fund raiser. that m -- that comes first; then the charges from the government. we first reported in january that it looks like the criminal case against executives there, jooking corzine is difficult. the issue now is civil. unless they found something else. we don't know. i'm not in that room. civil case charges means you don't go to jail, but most likely, you are fined and thrown

out of the business. i think that's what jon corzine faces. >> tong, sir, thank you, charlie. big breaking news day, leaving it there. >> chipolte shares dip like a chip. earnings after the bell today. >> as promised, breaking news on google, shares halted at 9%. shares that are moving today, winners and lossers in a flat market. lan research up 7.75%. back with markets now, stay with us.

>> breaking news, google drops #%, back to the stock exchange with what's going on. >> a lot going on with google,

absolutely. first thing is the stock halted, remains halted. we're getting all kinds of statements and no comments as well. we'll go through this a bit. the first and foremost thing is that google put out, the printer filed without authorization. google's also declined to comment whether or not the results were actually accurate. we know now, and we saw the results around 12:30 come out, it was a big miss on top and bottom line, earnings per share and revenue missed. the question is whether or not the numbers are accurate. stock halted, trading as low as 676 on heavy volume, another chemo men tum player; right? people sell off when they see that happen. the financial printer, and that stock has been done, and down over 5 git. a that low point today, traded

at 10.14, but rr is saying they have no comment. we are going to be hearing more from google in the conference call at 4:30 p.m. europe, 1:30 pacific. those are the factors that come into play here. motorola mobility is another thing people want to hear about and how that affected numbers as well. this was on heavy volume and serious selling. halted now, could be halted the whole day or not. we'll see. >> that's what it sounds like. a lot of questions to be answered. thank you for that report. we'll check back in a couple minutes. so far, no comment from rr, the financial printer who put out those numbers, which, again, unclear if they are accurate. shares down over 8% in october, and david einhorn's expectation to see more from taco bell, but next guest is bulling. joining us from web bush

securities. thank you for joining us. what do you think -- david einhorn essentially tanked the stock. accurate or created a buying opportunity for other people? >> i think it's a buying opportunity. i think that expectations going into the corp. at 5%, sales growing, very realistic. our techs came in solid, and actually think we'll have at least a 5% comp for the quarter. >> tell me about that. what do you do for the channel checks? what did you find? >> absolutely. you know, we do checks about 10% of their u.s. stores, geographically balanced way to merit the store concentration, we do it 2008 a quarter, and found there was little impact from the tea -- taco bell. things people have not emphasized enough is the marketing spent in q2 before the

stock tanked was the lowest level since 2008. we're going to have the highest marketing spending q3 of this year since going back to 2008. that's going to help. >> so you have been doing homework, but you still have questions. what do you ask on the calls? >> well, the first thing is that i'd like to get a lot more clarification on the impact from marketing. for example, in september, this year, we had a festival in chicago. last year, it was in october, q4. this year, we would have had a nice benefit in q3 from that. second question is about pricing, expectations of pricing in the future. as we get into some commodities later this year, and early next year. >> what is your target on this stock? >> my target now is $350. >> okay, nick, thanks for coming on. appreciate your insight. >> absolutely. any time.

>> gentlemen, no need to fight over us. >> ha-ha! >> president obama and governor romney tuning in on women's issues before election day. >> we know what womenment. it's lou dobbs joining us next. looking at the 10-year and 30-year as we break. sliding down a basis point. we'll show you the 30-year as well. we'll be right back. i'm a conservative investor.

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>> here's your fox business brief. mortgage rates, again, closing in on record lows as home construction builds momentum. the average rate on the 30-year fixed mortgage is 3.7%, just above its all time record low of 3.36%. associate's degrees may be more value. employment for americans with a two year degree or some college increaseddedly 578,000 and payrolls for those with a bachelor's up just 3 # 14,000. access and success is two-thirds of the class in 2011 graduated in debt. no research shows the average student owes $26,000 in loans, up 5% from the class before.

that's the business network giving you the power to prosper.

>> president obama and romney turning to women's issue in hopes of wooing female voters on election day. we're so popular. >> important voting class for sure. >> there you go. i was surprised on what women consider the most important issue in the election. abortion is the number one issue on the minds of female voters at 39% followed by jobs at 19%. look at the gap. 39 versus 19? meanwhile, men, jobs is top at 39%, economy is second at 38%, and they surveyed voters in 12 key swing states, and lou dobbs has his take on the ladies. >> i'll start with my take on the poll, if i may. it's utter nonsense. think about the women you know

in your lives, our colleagues, friends, family, name one -- don't name her, but an account of women that are so one dimensional, so detached from what is an adult life that they would say what apparently that group of people surveyed did. i don't believe the poll. having said that, i don't believe that people create this mean around binders and a snarky left plays with it like it means something. the left is desperate. the polls show they move to romney. that's why there's nonsense in the polls, from the obama qualm pain, and the left of this country like the national lib ray media. that's the story here. >> i'm wondering, i want your take on whether or not women are the deciding factor in the outcome of the election. >> i would think so.

they are 52% of the population. that works out good, and they will shown up in droves, and last time, they turned the election, thee election over two, of course, to president obama. what we're seeing in the polls right now is parody being approached, and if we have a 4% or 5% swing in the margin, governor romney is the next president of the united states. >> you wonder how they ask the question. we're not saying abortion one way or the other, for or against it, but it's hard for me to believe it's at the fore front of women's minds in voting. it doesn't seem like the right to have an abortion is right now, you know, is -- >> it's not in question. it's assured. >> thank you. >> this is 2012. it's america. what you have are mindless -- in my opinion, mindless campaigns trying to drive war on women, but the war on women is really waged by the left because they are insulting intelligence,

values, and their expansioniveness, as human beings in their outlook and their desires. my god, can you imagine what your, you know, according to the polls, biggest issue is contraception and abortion. wow, how far we're come. it's crazy. >> lieu, thank you so much. a lot of breaking news. briefer than usual, i apologize. >> very upsetting. >> we'll see you -- >> we'll make it up. >> we'll make it up. tonight, catch congressman gomer discussing the race for the white house and how voter fraud affects the election, a new poll saying 71% of the people in favor of voter id laws. >> all right, big story is google shares after a 9% decline. the fcc, nicole, issuing a statement to fox business network. >> that's right. the spokesman for the fcc actually declining, declined to

comment to the fox business network when asked if there was any inquiry underway into the premature release of the ak earnings filing. obviously, we got numbers. we're not even sure whether or not they are accurate. this was premature, the filing, and google coming out saying earlier this morning, rr, the printer, ensured us they filed the draft earnings statement without authorization. it was interesting, too, because it said put -- paraphrasing, but put larry's quote here; right? larry paige, ceo, was that supposed to be in there? this was unexpected. rr sold off, look at that dramatic move there at 1 p.m.. everyone began to realize it was the financial printer at fault for this, sold off over 5%. it's come back some. google halted after this, google halted their own stock waiting

to release the numbers, go through the numbers, and do the proper protocol, and them there's an earnings call at 4:30, originally scheduled. neither confirming nor denying numbers that we've gotten in, but the truth of the matter is numbers came out, if those are the real numbers, people on wall street are not happy with them. earnings per share missed revenue, and in a big way, a half billion dollars. we'll see whether or not they are accurate, and rr, also, no comment from the the printer. these are the things people have to juggle. in the meantime, a huge acquisition, fighting ad revenue, things we follow close my for google. it is a huge company. somebody like jason white said it was a mistake, and it was, in fact, a mistake. whether or not it's a knee jerk reaction, broke the moving average for the momentum player meaning sell; right? just get out of it, and those are some of the factors. volume heavy. if it closes down 9%, the way we're seeing right now, that would be the biggest one-day drop since september 30th of

2008. that's four years ago, over four years ago, biggest one day drop for google if that's the case. >> that's sums up what we know about the google story today, thank you. >> thanks, nicole. we're all over it, we'll have more breaking news on the other side of the break. don't go away. the stock there is halted, but it was slammed before it was halted, and, of course, it's the story of the day. we'll be right back. 0t[h7 [ male announcer ] this is steve

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lori: shares of google are halted after surprise early release of its earnings. it appears to be a mistake, the release, that is. the numbers we're not sure about. here with much more on

google sandra smith with do's trade. >> lori and melissa we're looking what is affecting major averages. the other major averages, dow and s&p are down much less. google definitely the culprit. nasdaq, you got the plunge when google earnings came out at 1230 p.m. eastern time. nasdaq making session lows as the stock is halted in pending news. that being said, guys. i want to point out the fact if you bring up laggards in the nasdaq, you will see the google is the biggest way in the nasdaq down 9%. stock is still halted at 687 a share. this is one of the stocks that entered the 700 club. it is below there now. big question whether or not it will return there. want to point out something as we at google shares. volume, over six million shares. we're looking at going billion volume double its daily average to be at et cetera levels before the

stock was halted. by the way, i want to finish up showing you year to diet chart. it has been on a major tear lately, it is up 6% this year. this news, lori, melissa, fell below 50-day moving average. lots of stuff happening here. lori: thank you, sandra. melissa: we've been talking about this all hour, there was surprise, this is what got everyone going on the idea this was an accident. as if they were waiting for ceo larry page to make a comment. shareholders, if you're still in the stock, there is new twitter account in this day and age at pending larry. one of the latest tweets on there, says, our google doodle on today's event is pending that is pretty good. pretty funny. we don't want to make light of the situation but someone else is. we thought we would bring it to you and try to have a sense of humor as we sort out the hard facts on this little sidebar for you. entitlement nation, new

numbers out show the stunning amount u.s. spent last year on welfare programs. liz macdonald is here with emac's bottom line. liz, what is the total dollar figure for how much was spent? >> more than one trillion dollars. both federal and state. surpass what is is spent on social security, or medicare, or defense. in fact, it is about what we spent on national defense, and medicare combined. and u.s. spending on welfare has been rising. notably food stamps you're going to see under the president, under this administration. so what happened, al bam senator jeff sessions said i want to see how many programs we have out there and what the costs are and how many there are. there were 83 that he found. that is big debate going on in washington, d.c.. lori: troops parensy will help in terms of understanding how big the government spending is. >> the debate, republicans hate the poor or government not doing enough for the poor. i it is more than a trillion dollars and 1/5 of the federal budget but 4% under

jfk, wait we knee a rethink how much we spend under wealth fair. health reform, 15 million more could come to medicaid. those numbers are probably set to rise. lori: thank you, emac. melissa: thanks so much. coming up tonight on "money", john allison joins me from cato to see how safe the market is 25 years after the black market crash. kind of appropriate day for that. we might ask him for the google thing as well. murray energy ceo, robert murray will discuss which candidates are friend or foe of the coal industry. that is 5:00 p.m. eastern on fox business. lori: you made a great point about the google doodle. how will they handle it from a pr perspective? much more on the google issue today, let's call it the google debacle. let's not go that far yet. many say the presidential election will shape the markets. one big money manager says no matter who wins, join tracy byrnes and ashley

webster. here they come next on fox business.

tracy: good afternoon, everybody, i'm ashley webster. tracy: i'm tracy byrnes. what an afternoon, google shares halted after an early -pearnings release showed the company missed profit and sales target but google not commenting whether the numbers are actually correct. we'll bring you the very latest on this fast developing story. ashley: been a strange day, that's for sure. questions about china's gdp. one analyst says the government's numbers not reliable but we know that. he came up with his own gauge on china's growth. that is straight ahead. tracy: everybody's numbers are off. government spending on welfare topping one trillion dollars, more than social security and medicare combined. you won't believe how much it is up in the last four years. ashley: time for stocks.

but as we do every 15 minutes, with nicole petallides. google releasing earnings taking everyone by surprise. looks like a huge foul up on many fronts. >> it is. we'll hear a lot more as it all becomes unfolded bit by bit. here is what we do know so far. we got numbers, pertaining to google's revenue and earnings per share for google, both which missed. the question is accuracy of those numbers. google has not commented. whether or not they are, correct, nor if they are incorrect or accurate. we know that r.r. donnelley, the financial printer, actually released those numbers, that earnings statement without authorization. that is according to google. r.r. donnelley, has no comment. the sec has declined to comment whether or not there was an inquiry underway into the premature release of these earnings. there is a lot of factors. r.r. donnelley, lower. other internet type stocks,

lower, yahoo!, yelp, baidu, all lower along with google. there is a five-year chart of google which was about $700 when we launched the fox business network. it traded down to about 250 or so back in 2008. it has been moving back up above that $700 mark. today, dropped below the 50-day moving average, which is another factor for the momentum players. this is on very heavy volume. we'll see whether or not it actually resumes trading before the end of the day. theoretically could be halted all day, if the news pending comes out and they release correct numbers they could resume trading. will the orders be canceled? there are some questions that come into play here. we can only give you the facts. the facts are the stocks are halted on news pending. ashley: if anything changes or developments we'll go straight to you. nicole, thank you very much. we have more on google's earnings report in 15

minutes with internet analyst from an advisory group. tracy: nicole brought up a great point. that is great question. what happened to those that sold on the news? get back to the economy a bit. initial jobless claims data showing sharp reversal from numbers last week. what is behind the swing? peter barnes, i feel like deja vu all over again with these numbers? >> tracy i have got some numbers answers for you here. tracy: oh, good. >> labor department saying big swing is technical and seasonal factors involving one big state in particular as we reported. they rebounded from unusually low level a week earlier, a four-year low, that raised a few eyebrows coming ahead of the presidential debate this weekend a few weeks ahead of election day. economists blamed one large state, california, for that drop because it was having issues processing unemployment claims related

to the start of the fourth quarter, october 1st. but economists also predicted this big bounce back that we saw this morning, as the state caught up with processing its unemployment claims applications. tracy. tracy: peter, there is a lot of people out there saying that the administration is kind of manipulating the data. any comment on that? >> yeah. there have been some concerns about manipulation, but one, former bush administration, labor department official that i talked to this morning, says that, the civil servants, the professionals at the labor department, that he worked with and knows, would not and do not manipulate the data. but he days say that top obama administration officials at the labor department need to be sensitive and careful with the numbers in this election season. >> could be better leadership, insisting if there is any report coming out that all of the data associated with that, all the caveats be made public and very clear at the point

the data is released. >> a white house spokesman said this morning on these numbers, don't look at one week's worth of numbers. look at the trend. tracy, ashley. tracy: of course they did. peter barnes, thank you, sir. ashley: sounding more and more like china every day. with the election just under three weeks away investors wonder how it will impact the market. our next guest says it won't really have any impact. what we need to move stocks higher is a credible, long-term plan for debt relief. that would be nice, wouldn't it? john taft, ceo of rbc wealth management, the u.s. is also here and great-grandson by the way of president taft. very cool indeed. >> a republican i point out. ashley: let's get to this. would seem to me that republican mitt romney would be more favored by the markets, real capitalist guy, free markets, less corporate, perhaps regulation. you said it doesn't make any difference? >> first of all i agree with

everything you say. he would be obviously the preferred can diet for many businessmen and market participants, in the grand scheme of thing and both president obama are relative centrists. they're intelligent, capable, experienced and they have the best long-term interests of the country at heart, i believe. so, whether obama or romney is president, they are probably going to have to work with a congress that shares power with the other party. doesn't matter which one is in the office. so the question is going to be, when we have to address, come up with a policy response to the fiscal cliff, and when we have to come up with a policy response to the debt ceiling which we're going to hit again, in the early months of the year, what is that going to look like? is the president going to be able to work with congress to come up with a compromise? if the answer is no, the market is going to respond very negatively to that. if the answer is yes, then i've said, publicly, i think we could be looking at a long-term bull market in u.s. equities if there is a

credible plan but you need congress and the president, whoever it is, to get there. tracy: what is it these days? in the past we always used to say, let but the heads for the next four years. according to in trade, market wants obama, 64% and romney at 35. >> there is interesting fact, we went back to rbc and looked at previous elections. investors do best when incumbent president reelected, when that incumbent is a democrat and when reelected incumbent democrat has to share party with republicans in congress. in the first year after that happens the market is up double digits. that is plausible scenario. tracy: why the entrade number is so high. >> historically the market responded well to that. whether they will in the future, who knows. but the issue is this? this is what is so frustrating to businessmen, is that everybody knows what

the problem is. you have a systemic, and structural deficit. we are spending too much money, relative to the level of taxes that we're collecting. ashley: right. >> you can't fix the problem. either by raising taxes, solely, or by cutting spending, solely. so you have to compromise with some balance. the other thing everybody knows that you can't do either of those things tomorrow. the economy is too fragile. so you have to phase the solution in overtime. there are several credible plans out there. the one you hear them talk about the most is simpson-bowles or bowles-simpson. ashley: which the president ignored. >> which the president ignored. and i'm telling you, if either new president signs a simpson-bowles-like bill passed by congress, look out, we're on the mend again. ashley: interesting. you know, very quickly, with regard to investors, a lot of cash in, bond and cash itself that just don't want to jump in. there is a built of a lack

of faith in the financial system, would you say? they have had glitches. they don't trust banks or regulators. >> that is the single biggest market facing the market. by the way of lack of policy response to washington contributes to that. it is the financial crisis. the flash crash. botched ipos. libor manipulation. investors are sitting there saying should i trust my hard-earned savings to put into the marketplace? guess what? unless and until they do, we will not have the patient long-term capital we need to get the country and the economy moving again. tracy: look at today. we've got a earnings report released without even the company approving it. ashley: just adds to the air of confusion and chaos i think. john, thanks for being here. >> thank you. tracy: a lot of fat fingers. ashley: someone reaching for a coke. tracy: coming up, waiting on google to clear confusion over its early earnings releases ashley and i were talking about. the stock is still halted. we'll definitely have latest

on that next. ashley: disbelief on china's economic reports to cause an analyst to come up with his own gauge on what is really happening in china. that is ahead and good stuff. as we do every day at this time let's look how oil is trading, moving up modestly half a percent at 92.51 a barrel. we'll be right back. ember that escapes from a wildfire

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ashley: just to get up to

speed. you've been following this story. google shares halted on nasdaq after what google says was a mistake in releasing their earnings report early. they're blaming r.r. donnelley, the printing company, that filed the ak for doing this by mistake. as you can see, when the shares were halted, it was down 9%. as for r.r. donnelley, down, mod leftly -- modestly, down 1 1/3%. perhaps assuming this is in fact the final numbers, bi bigging -- missing big on sales targets. that sent the stock into a tailspin. that's why google we understand requested the shares to on halted. tracy: the biggest flag on the report, biggest line, waiting for comment from larry page. ashley: clearly was incomplete. so are the numbers complete? that's woe don't know. we'll keep an eye on it very closely. tracy: i'm itching to know right now. it is driving me crazy. entitlement nation,

we've been talk about this. we have new numbers that show the stunning amount the u.s. spent last year on welfare programs. ashley:. liz macdonald is here with emac's bottom line. >> yeah. tracy: so many more people on welfare now than when the president took office. >> that's right, tracy and ashley. what is happening there is a big debate in washington, d.c. government is consistently under the attack. government doesn't do enough to help the poor. senator jeff sessions said, wait a second i will ask the congressional research service to look into this, he found 83 overlapping programs. they're being shown on the screen right now. more than one trillion dollars is spent on welfare. single largest, line item in the federal budget. and it is basicallyally surpasses amount spent on social security or defense. ashley: when you say overlapping people are given a double amount of money. >> just programs could be doing same thing as other programs. that is a great question. the issue is also that the federal government is basically a 1/5 of the

federal budget. it is up 32% since 2008, tracy for your question. it doesn't include veterans programs either. this spending will likely rise for medicaid because of the 15 million uninsured who will be put on medicaid through health reform. tracy: that's right. >> we got from senator jeff sessions, not only that the government is encouraging people to get on welfare. we have a mini script to help basically usda welfare officials to help overcome the word, no, if a senior citizen or anybody else comes in and asks for benefits, say no. stop them from saying no and give them a government check instead. also things like giving out awards for people who get more people enrolled in welfare and the like. ashley: right. >> it is a real serious debate as the fiscal deficit continues to balloon and debate goes on, we're not doing enough to help the poor. you know what, american taxpayers are really generous helping the poor. ashley: it become as lifestyle after a while. tracy: we're not helping people get off it either.

>> yeah. another one here too. counteracting pride. in other words, somebody who doesn't want to government check comes in, well, what other program is out there? there is a script to counteract quote, pried pride to get a government check. interesting stuff coming out. ashley: thank you. back to nicole at the nyse with more on google, nicole. >> there is so much uncertainty surrounding google now as time is paing. we know that the numbers were released unexpectedly. what we don't know is why were they released and seems r.r. donnelley did the ak filing unexpectedly without authorization. so people get these numbers at 12:30 when they were supposed to be at 4:30. were the numbers correct? i heard people actually bought at a dip. people think google is screaming buy, bought on the dip. other folks who i know are short of stock and wondering

whether or not they will have the orders executed. did they make money if they were short this stock? what happens ultimately? in the meantime the moves we've seen for google, assuming it stays here, this would be the largest one day drop we've seen from google in over four years. there is certainly a lot of uncertainty. we don't even know if the numbers are right. this is something that obviously took wall street by storm during the lunchtime hour unexpectedly. we're trying to work backwards and figure out what's what. as we get more we'll obviously continue to bring to you. i like to see what really happens. ashley: wouldn't we all. thank you so much, nicole. back in 15 minutes. tracy: getting messier by the second. coming up google analyst shares, his take on the release. ashley: first how is the green back doing foreign currencies? euro gaining a strength, dropping a bit today. still around 1.30. in fact the dollar is up against all those

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ashley: welcome back. breaking news from r.r. donnelley. get straight to adam shapiro in the newsroom with the latest on this. >> this is a statement from the executive vice president of corporate communications doug fitzgerald, responding

to the problems with google, quote, we are fully engaged in an investigation to determine how this event took place and are purviewing our -- pursuing our first obligation to serve our valued customer. that coming from the executive vice president at r.r. donnelley, doug fitzgerald. back to you, ashley. ashley: we have a response from the printer, financial printer apparently released the earnings early. tracy: too soon. ashley: too soon. tracy: could have replaced nasdaq in that to flash back to the face book ipo, right? ashley: yeah. tracy: for more, we're joined by tom forte, internet analyst. tom, my head is spinning. i can't imagine what your head is doing during all this. first of all, what do you think of this premature release if i can say that? >> it is pretty surprising that the numbers came out while the market was still open. we were fully anticipating google to report after the market closed do. so that was kind of the

first surprise. the second surprise, these numbers are the actual numbers they were much weaker than anticipated. so two surprises from google. tracy: do you believe the numbers? they haven't confirmed or denied them. if in fact you do believe them you're not pretty at all. cost per click down 15%. traffic costs up. amortization costs are higher. some has to do with the purchase of motorola mobility, no? >> basically assume that the numbers are correct, there are two things at play. google is managing the transition from a desk lop, laptop, internet to mobile internet. this is putting tremendous pressure on their cost per click. this is the first quarter they're reporting results for motorola mobility. we already knew they're laying off 20% of the staff there. so we didn't expect really good numbers out of that. so yeah, there is two challenges in the quarter. i think those challenges are real. tracy: so under the sul shun that the numbers are correct, you're not surprised by them? you were expecting them to

get hit a little bit this quarter anyway? >> the i thought about the quarter was, the second quarter, google reported a 1% sequential improvement in cost per click or the amount of money they get when someone clicks on search result advertisement. that number tripped to negative 3% in this quarter. this really suggests to me the traps significance from desktop lap top to mobile is a tough transition for google and expect pressure for cost per click for at least an extended period of time. tracy: the stock has been on a tear. do you think this transition, to smartphone usage and the like will hurt that continuing momentum? >> i definitely do. so i think if you look at the second quarter, they reported that 1% see sqepgs increase. prior to today, the stock went up 25%. i think there were some other factors contributing to that run but in my mind the main reason was the light at the end of the tunnel on cost per click. looks like there are still some challenges there.

tracy: they still have google plus which many argue much better than facebook. >> better in what regard? tracy: okay, there you go. there is that. what about the e.u. position on privacy? what is certainly something weighing on google. >> i think that, you know there is a chance that the e.u. or someone else might punish google for potentially putting their search results for their own properties above those of others. i think that is a risk for the stock. but that has been in the stock i think for a little while. tracy: fair enough. they're moving into the cloud. do you think maybe that is a way they could play this? >> i think there are a lot of opportunities for google. i think that, you know, generally speaking they're doing a really good job of managing their business. certainly the cloud is another opportunity. youtube i think has been a positive for the stock. tracy: yep. >> positive and i think numbers there are going to be good as well. tracy: at this moment, i know it is hard, the stock is halted still, would you buy into google right now? >> actually i wouldn't. i mean in our covered company list right now, our

two favorites are ebay and liberty interactive, and covered companies are least favored. i'm happy with ebay's results i'm a buyer of ebay. tracy: are you worried about larry page's health at all? >> no, i don't think so. he appeared earlier this week and i think he is okay and i think he is doing a fine job running the company. so i'm not worried about that,. tracy: tom, thanks for playing with all the vagueness, i don't know what else to call it because i screwed up last time i called something. >> thank you very much. ashley: let's hope larry page doesn't lose his voice after all this mess-up. my goodness. >> we'll certainly have more and keep up to date on anything that breaks on the google story. it is really interesting. ashley: it is. tracy: coming up it was a hot topic in the presidential debate. how does president obama's recovery compare with president reagan's? gerri willis crunches those numbers next. ashley: first let's look at

some of today's winners and losers. the dow essentially flat but many so stocks moving on up. dean foods one of them. and keycorp. both up 5%. we'll be right whack. -- back

tracy: 30 past the hour, dow down about 20 points rite now. -- right now. let's get a check on the markets. nicole petallides on the floor with the latest on google. nicole: we continue to follow google very closely, what transpired. we got numbers. we're not sure they're 100% accurate. since then the stock has been halted. do you think people are clamoring? want to buy? want to sell? can't get in? they are mad, what are you

hearing? >> i'm sure it is on both sides of the argument. the news caught everyone by surprise. you had this mad rush which would typically sometimes mean an overreaction. but now they have got this halt in trading. the company calls it and leg legitimately so because the news came out before, so that's very legitimate, but you now have people who want to jump in. people are thinking this is a huge buying opportunity. there are other people who think it is maybe not but the market is being held up at the moment. you definitely do have some frustration at the moment for sure. nicole: what do you make of the numbers, if these are the real numbers and they are correct, miss on the top and bottom line, what do you think? >> it is a fairly big miss; right? listen look what happened to ibm and intel. we are getting that kind of weakness in the tech sector. some people are thinking the top line is still growing at 24% so the number is not so bad. if you are a long-term investor, that very well may be true. if you are a day trader type, this is the kind of number you yearn for because you want to be

able -- there's going to be a lot of volatility, you want to be able to jump in there and trade it. right now you can't. nicole: i wanted to also -- we could put up rr donnelly which was the financial printer who actually released the numbers inadvertently without authorization. at the same time it took down the tech sector. we watched s&p technology index pull back and that group, yahoo! all selling off. we're assuming -- we don't know whether it will trade today. what do you think? will it open again or not necessarily? >> i heard mixed reactions they were going to open it. now i heard they are not going to open it until they make the official announcement, which would be 4:30 our time. it may trade in afterhours session. there are a lot of analysts already doing their work to try to stem the tide tomorrow and try to come up with positive spin on this story. nicole: if you were another company other than google and you wanted to give out some bad numbers, now would be the time;

right? everybody is focused on google. back to you tracy and ashley. tracy: ken makes a great point i mean the trader lives and dies by that initial moment; right? getting in, getting out, that's where he makes his money. ashley: can't do it now. interesting. let's turn back to politics. in making his case for another four years in office, president obama has said the economy is in a huge recovery, but a look at how this recovery compares to that of president reagan, well, it tells a very different story. gerri willis joins us now to show us how different. >> it was actually michelle obama who said it was a recovery, but the president kind of repeated that in the debate the other night. was it so much better for ronald reagan? take a look at this, gdp under reagan grew 18.5. under obama you have 6.7. lot household income, how much money do you make? up 4% under reagan.

down 4.75% under obama. as you know, median incomes are down $3,000 since the end of the recession for goodness sakes. payroll jobs, up 11% under ronald reagan. up 2.3% under obama. now, here's where i think the difference is stark. long-term unemoyed, down 49% under ronald reagan. up 11% under obama. stark differences here. you can really see. and you guys remember the ronald reagan recession. that was nothing to laugh at. it was a very very difficult recession. lots of problems, gas prices, double digit inflation, all kinds of problems. ashley: yeah, interest rates, oh my goodness. >> through the roof, you couldn't buy a house, come on. people can put this in perspective. this is a worst economic recovery i think ady in our lifetime has ever seen. tracy: ronald reagan relied on guys like volcker to fix this

and president obama had the opportunity ansort of blew it. what do you think? fixing this economy have pt been wrong. stimulus didn't work. it was too much money. green jobs, that didn't work. spending money by the federal government is not necessarily the right thing to do. ronald reagan proved that. what did he do? he cut taxes. what does obama want to do? raise your taxes. ashley: that's it in a nutshell. >> that took us what 30 seconds and now you know everything you need to know. tracy: that's why this is so fantastic and that's why you have to watch more of the willis report tonight 6:00 p.m. eastern time on the fox business network. ashley: excellent. you think things are tough here, let's go to europe. eu summit in brussels underway. already been a lot of finger pointing. the french president says it is vital that the eu banking union is agreed to the end of the year. they want fresh capital to be pumped into struggling european banks as the european banking supervisor is up and running.

but germany says hang on, any supervisor needs a proper track record of success before him or her is allowed to start dishing out valuable capital. meantime european commission president criticizing leaders today for not doing more he says to develop growth across the eu. in fact he says he's down right unhappy with the progress so far and is demanding a new sense of urgency, and as the debate goes on in brussels, a protest in greece turning deadly today when a 67-year-old man died from an apparent heart attack. five people by the way have now died during athens protests in 2010. it's part of a national strike today. as many as 50,000 protesters or more gathered again the parliament building. it's a scene we have seen many times. tracy: it is not going away, is it? ashley: no. tracy: coming up we have much more on google's surprise earnings release. dennis kneale up stairs crunching some numbers for us.

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>> i'm lori rothman with your fox business brief. an unexpected early release from google weighing on the nasdaq and s&p technology sector which is the biggest loser by far today, down 1.6%. now twitter implementing a policy to ban local content for the first time. the micro blogging service blocked the account for a ban -- [inaudible] -- at the urgent request of local authorities. the policy allows twitter to block content in specific countries if tweets violate local laws. amazon now offering lightning deals every day until november 18th for items listed on its holiday list. this follows moves by both target and best buy to announce they would match the on-line prices of their competitors. and that is your latest look at business from the fox business

network, giving you the power to prosper.

tracy: so clearly some surprises aren't necessarily good. google earnings watching wall street way off-guard earlier in attend, in a filing that appears to have been posted inadvertently. came in below expectations. dennis kneale is following this. >> 22 billion dollars, that is how much market value google lost in a single day today. now, after the mistaken premature release of an incomplete earnings report that was surprisingly disappointing. google stock plunging after 12:00 noontime eastern around that and it's still halted, and this after that errant filing showed up at the sec, google blaming that error on its

publishing vendor rr donnelly. that firm's stock is down now. wall street hates surprises of course. this wasn't supposed to be until after trading today. but premature proclamation, only part of google's problem. supposed to be a growth company. net income fell 20% from a year ago in this most recent quarter. earnings per share down 7%. paid clicks, 33% in the quarter, but the price per click down 15% from a year ago. down 6% from the second quarter. google growing like gangbusters this one area, though, guys, expenses, total costs jumped 70%. that's craziness. there's motorola misadventure that tracy was talking about. it ran a loss of 1/2 billion dollars in the quarter. a lot of this today could be profit taking. google stock surged up 20, 30 percent in the third quarter.

biggest quarterly rise in almost 7 years. but worry about that growth and expenses and worry about motorola mobility and investors better beware. tracy: you made a great point in the break, though, that wall street should have been a little bit more prepared. where was that expectation? that stock has been on a teer. the company has been doing well. someone should have been lowering the expectations. >> yep, not a good job managing the street. ashley: no. tracy: to your point, he really didn't have a voice. ashley: he didn't. he's had health issues as well. tracy: should have had someone else. ashley: what was once a major competitor against luxury car names like cadillac, ford's lincoln brand is looking to make a resurgence in the market. jeff flock joins us now live from dearborn michigan with an exclusive look inside the lincoln design center. jeff? jeff: something you never see, looking at a milling machine here actually crafting in clay a lincoln mkz.

this is the car that this week just got certified at 45 miles per gallon by the epa. you still do it in clay. max, the director of design for lincoln. >> yeah, we still use clay. we use a variety of processes. the clay is the ultimate way that we -- jeff: you still have real people crafting this car just to make it perfect, the way you want to. lincoln is an extremely important brand for ford, ashley. they make a lot of money on these cars. this is luxury and high profit margin. >> absolutely it is. it is so important for us as ford motor company to get lincoln back to where it needs to be from a luxury brand standpoint. jeff: take a look at the stock, in the past year look at gm stock compared to ford stock. gm has had a run up. ford obviously not having taken that bailout but they are staking a lot of their future hopes on vehicles like this. this is actually the concept car for the lincoln mkz and max, you

designed this -- they already had a car, mkz they were going to design. you came in and said i want to change this. >> i was encouraged by our management to change it too because we knew that we could do better, i think, at that point in time. we got together with the team and we went back through a lot of work that had already been done, and we explored some new opportunities as well. we made some changes. that's the car you will see on the road today. jeff: before we get away, just to show you, this by the way they do it in clay, then they do it in fiberglass. this is not a real car. it is a fiberglass model right here. >> this is a fiberglass model. we build these models two years before the car ever sees the road. it is really just a validation for us and a tool for us to be able to see what the car is going to look like when it gets on to the road. jeff: the one behind you is real car, that red one there and that is the lincoln mkz hybrid, certified by the epa at 45 miles per gallon makes it the most

fuel efficient luxury car on the road. ashley: great stuff, from clay to fiberglass to the real thing, saw it all in about a minute. great stuff. thank you. >> thank you. tracy: we need to get more on google. nicole petallides on the floor of the new york stock exchange. what are you hearing? nicole: a couple of things come to mind, i'm hearing some action we've seen from traders pertaining to what happened to google. at 12:30 we got the news that earnings were out, inadverte inadvertently. we don't know if the numbers are correct. between 12:30 and 12:50, what happened was this entire market turned around. there's a look at google's chart where it fell off a cliff; right, and moved down to 676 -- 676. i'm hoping we have facebook or nasdaq, something tech related. traders began to sell the entire sector, facebook would be in there, yahoo! baidu, the s&p tech index, the intraday chart showing that tech overall sold

off, high beta stocks that are very sector sensitive, we started to see the options traders doing that and moving with the puts; right? so that's the action we saw on google. now we'll wait. obviously the stock is still halted. how do you get a halt with news pending? well, that's the only way to get that is by having the company call the exchange in which they called the nasdaq and said halt the stock. we will see. larry page -- we will see what happens with that. he wasn't on the last conference call. we will see if it's pending a larry comment. something also interesting to follow. ashley: continues to pend. nicole thank you very much. coming up, china's economy slowing for a 7th straight quarter, but next we will have one global analyst who tells us why he doesn't believe the numbers. tracy: first take a look at some of winners and losers on the nasdaq which is being grossly affected by google. lam research up 7 1/2%.

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tracy: we're waiting for google to clear up the confusion after a surprise early release of its earnings. the stock is still halted. here with more on google, sandra smith in today's trade. sandra, what do you have? sandra: it's interesting, we pull up a nasdaq chart, you will see the influence this has had on the major averages. nasdaq still sitting near its lows of the session and definitely the worst performer of the major stock market

averages, outperforming as far as losses the dow and s&p. so nasdaq at 3067 right now, just off those fresh lows of the day. google of course if you look there, no change because the stock is still halted. we're waiting for that conference call at 4:30 p.m. eastern time. fox business is going to be taking that live. but important to point out that when we look at google shares, that prior to them being halted, they had already topped over 6 million shares traded in the day. now, that is more than double the average daily trading volume we've seen in google shares over the past month. so significant volume ahead of that halting. we will see if those shares open for trading before the closing bell. by the way the stock had been trading at p-e of 20, pretty pricy even before the earnings release happened. over the past three months, gained about 18%. in this news fell below 50 day moving average. a lot of recent buyers of this stock getting burned.

year to date, however, just up 6%. so it has been an underperformer of the major stock market, guys, back to you. tracy: sandra smith. thank you. don't miss our coverage of the google conference call at 4:30 eastern time right here on fox business network. ashley: time to talk about china. its economy grew by 7.4% in the third quarter from last year. this was the weakest reading since the beginning of 2009. but is slower growth really what the chinese economy needs? joining me now is president of the china beige book. leland thank you for being here. we always look at the numbers with some skepticism. you put out your china beige book several days ahead when those gdp numbers released out of china. why should i believe your numbers over what the chinese government tells us? >> well, we use only independent data. one of the biggest misconceptions about the chinese economy is that the gdp number actually tells whether the

chinese government is doing a good job or bad job and overviews their stewardship of the economy. the reality is that the gdp number is just a number about productivity. doesn't tell how the chinese economy is or is not growing, whether it's borrowing gdp growth in the future, or whether it's doing a healthy rebalancing. ashley: i always seem to hear from people, and it is not every six months, it is almost once a month, that this is an economy that's ready to collapse. do you hear that? >> we hear that all the time. when we put our second quarter report out that says we were seeing modest strengthening in the economy coming out what was quite a deep hole from last year, people were saying we were -- [inaudible] -- what i think you see here the official data tells a very pretty story. it is these beautiful growth curves. nothing ever goes down too much or up too much. but the world doesn't work like that. when we try to get to the bottom of this and cover the real story. ashley: what have you found out? we understand that the chinese economy is slowing, even the government has to admit that,

but to what percentage and where is it headed? >> we own don't come out with headline -- we don't come out with a headline number. ashley: but is it healthy? >> we're seeing weakening like everyone else is, but the difference is not all weak seasoning the same thing. we're seeing precipitous decline in manufacturing growth. that's really being hit hard. we're seeing a weakening in the services sector. we're seeing a weakening in the retail sector, but proving far more resilient. very different than seeing an overall calamitous decline. ashley: very export driven economy. efforts underway to increase domestic demand. is it being successful? >> we don't think so. one of the things we do is not just look at bank rates which are set by -- set by the central government, we also look at the shadow economy. what we do is break down by region and by sub sector the nonbank lending rates. we have information on what firms are accessing capital. what's the cost, the real cost to capital. and for three quarters now, we've seen a decline in the

national interest rate but at the same time decline in loan demand and the third quarter was by far the most significant drop in both the interest rate and loan demand. ashley: thank you very much for being here. >> thank you. ashley: there you go, official. tracy: coming up, more on google surprise earnings. countdown to the closing bell is next. before copd...

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liz: good afternoon everybody i'm liz claman. it is the last hour of trading. countdown to the closing bell begins right now. a pre-halloween scare spooking google investors and much of the nasdaq. here's what happened, google's earnings released hours early. >> why? was it a mistake, was it a

so-called fat finger move? no real explanation from the company about why this inadvertent prerelease of the earnings happened but the stock tanked on the news, down $68, that's a 9% cut right there. and then the stock was halted. it remains halted. the second this stock starts trading again, we will jump right to it. originally let's get to the story, they were supposed to be released after the bell today. google declining comment on whether the results early or not in the earnings are even accurate. google has stated that financial printer rr donnelly which is only down about 2%, whereas google was down 9%, filed the draft earlier without google's consent. this is what rr donnelly does for business. they do release these things. but hopefully on time. they released a statement right afterwards saying quote, we are fully engaged in an investigation to determine how this type of event took place, and we are pursuing