working for the release of pastor brunson held in turkey >> long overdue for action. our my is so good and so strong right now. >> a strong economy with higher interest rates was the worry. but things may be turning around. overnight president trump is going to meet with chinaing the selloff. >> investors don't want to sell into the weekend because look at this u.s. stock futures are way up. dow gaining 180 points nasdaq gaining 84. >> relief this morning after the dow sank 545 points yesterday losing nearly 1400 points in two day. >> out of. energy stocks leading market lower after a 3% drop in oil prices yesterday alone. right now oil up almost 1% at

71.60 a barrel. not 75. yields one of the piecing the selloff this week up one bases point of impact the yield right now 3.17%. >> ambulance back that we're seeing is happening globally in europe. tech sectors are moving higher so are are major markets in europe. you can see the dax in yerm is up 45 points. >> news of that potential meeting between china and u.s. boosting asian markets take a look. green across the screen up more than 2% overnight. efnlg we continue to see stunning pictures of absolute destruction along the florida panhandle one town completely flattened. fbn:am starts right now. ♪ >> all right it is 5:01 a.m. in new york it is friday, the 12th

of october thank you for joining us this morning i'm lauren simonetti. >> good morning everybody cheryl casone a crazy couple of days for investors. john: it is october and midterm elections are upon us so volatileity isn't going anywhere. cheryl: but thing could change things todays our earnings from the banks going to give stockses lift with four big names reporting third quarter nurls out today. lauren: and tracee carrasco is joining with us for that. good morning, tracee. >> earning season kicks off with jpmorgan chase and p and city and citi group setting the stage for next week with a handful of financial imnays reporting including bank of america american express, morgan stanley goldman sachs black rock travelers and progressive. for major banks it is the most profitable first quarter thanks in large part to the tax cuts.

however, investors and analysts are now concerned about the banks future growth even though the economy is strong and interest rates are increasing which is normally good for banks. people are not borrowing so legending activity is slower than expected. we should say wells fargo is interesting today because that is the one bank where the forecast for revenue to drop. we know, obviously, that bank has had self scandals as we've been reporting. >> all right tracee thank you very much. >> the president trump describing the federal reserve as crazy loco and getting too cute stock market continues on with its october slide. >> i think the fed is out of control. i think what they're doing is wrong. i think that fed is far too stringent and they're making a mistake and it is not right. it's despite that we're doing very well. but it's not necessary in my opinion. and i think i know about it better than they do. believe me. >> unusual but strong criticism

of the federal reserve. the president did mention that the federal reserve chairman jerome powell will not lose his job. cheryl: back to your markets to take a look at dow futures we are up about 175 points right now on dow futures 177. s&p up in premarket 21 and three quarters. nasdaq up 84 points nasdaq could at this point have a opening gain of more than 1% almost one and a quarter percent. remember we lost nearly 1400 points over the last two days that was more than a 5% drop. but thing could be turning around did we just have a well a healthy cleansing of the market? today let's talk about this with bank rate.com chief financial analyst mcbride and really it is the interest rate stir and qepght to talk to you about the fact that worry about interest rates are have been, obviously, a part of the concern because borrow rates for consumers borrowing rates for corporations would be on the rise that is your sweet spot your specialty

at bank rate are. what are you seeing? >> that's exactly right cheryl what we are seeing as interest rates have gone up and we saw long end spike up last week. you know stock market kind of got that memo this week that oh interest rates are rising. and what you're seeing is investors predictable throwing a temperral tomb it is low interest rates fueled this bull market and so prospect of rates going up has investors kind of, you know, almost bit of doomsday seminar is owe with playing it out in their heads like is this going to slow economic growth or earnings growth what's this going to do to stock is prices and again just more of the inflection point that we're at the fact that, you know, economy is doing better so rates are going up. i think that's the big picture. >> certainly you've also got more debt. treasury is issuing more debt because of the tax cuts. i mean we pay the federal deficit is on increase that's part of the story too. i want to bring in on that note portfolio manager jeremy you know what greg is saying is true. you've got gdp at 4.2% for third

quarter and unemployment 50-year low you have the consumer confidence at a multidecade high. all of that to me says that market should be strong an maybe what we saw over last couple of days here was frankly a healthy pullback which you want to see. if you're going it have a good stock market. >> this is what we would call a healthy correction. you're looking at numbers that the stock market what we had said coming into the year was expect more volatility amid single digit return we were getting more of that going in and pullback going now. i think that voltity will be with us for a while and see what companies have to say in next couple of weeks but overa all we're positive on the market. >> e-yeah, well i'll tell you one thing that hasn't been positive is the president his comments about jay powell federal reserve chairman and not going to fire him. he has to have cause to do that and critical of the fed they're

crazy, loco what do you make of that we've never seen in a political environment in our lifetime a president be so critical of the federal reserve which is -- technically supposed to be independent body. >> yeah. i mean acceptable out of the norm for what we've been grown accuss cuss to but just like investors talk their book. i think that is what you're seeing here in the sense that, you know, from the president standpoint he was the economy to grow and grow faster and sustain is that faster face of growth and so anything that could be a potential headwind to that rising interest rates you know is something he's predictable understandable not a fan of but you know fed is in a tough spot to raise rates now. just given where economy is now but way interest hikes work and doesn't affect economy for another 6 or 9 months so a bit of a tough stance with best traders in baseball 36% of the time and that's the box that fed is in right now. they have a tough job. >> that's a very good analogy

jeremy let me ask you about banks we had our cor spongt with rundown of names that are coming out. we're going to be hearing from banks and usually in higher interest rates environment these banks do well and while all earnings for share estimate ises are higher year over year wells fargo is one weak spot on revenue side jeremy what are you looking at there? >> yeah. we with generally like banks e overall. i mean, loan growth has not been phenomenal that's part of the game right now and yield curve flattening hasn't helped and earnings estimates are rising and dividend profiles are going crazy they've been phenomenal in dividend growth side and balance sheets are healthy. i think generally this is a god set up for financials that will help their businesses overall. we think this is a good setup for financials into the end of the year. >> we're looking at a lot of stocks and premarket an they're

looking pretty strong right now. so these are certainly some big names to windchill and may have a reversal of fortunate today which we need on a friday. greg jeremy guys thank you very much. >> thank you. thank you. >> we have breaking news to get to overnight american pastor being held in turkey could soon be released reports say andrew is in court this morning and down on his way to the u.s. shortly white house is said to have struck a deal in exchange for easing economic pressure on turkey. faces terror and espionage charges but living urntiond house arrest and faces up to 35 years in prison. president trump has demanded pastor release and added further complications to already strange relationship. >> so true. well we are not strained when it comes to your market this is morning it is okay to look up at your television right now if you're with listening on radio here are numbers dow is up 183 in premarket. s&p up 22 and three yearts nasdaq is up 87 points right now.

a lot of news coming out overthat we may have a meeting between president trump and xi jinping and other big story for you tropical storm michael a category 4 hurricane at land fall has killed at least 6 people and three states. but we're not out of the woods yet. >> you couldn't see you look out windows and you have pieces from people's houses flying by and trees flying by. how millions are picking up pieces this morning after one of the worst hurricanes to hit the state of florida. we're going live to one of the hardest hit areas coming up next. you're watching fbn:am. ime for the financial world to stop acting the same old way. you need a partner that is willing to break free from conventional thinking. we are a different kind of financial company. we are athene, and we are driven to do more.

too hot to work? nah. this is the gator xuv835. with game-changing heat and air, it's never too anything for anything. good morning and happy friday and it does look like a happy friday if you're looking at the future market after intense selling all week. s&p is down 6 days in a row it is up this morning but .8%. the dow sup three quarter withs of one percent and look at the nasdaq gaining one and a quarter percent. well needed relief we'll see -- what happens come to close volatility is certainly here. >> our other top story we're following this morning storm michael killed at least six people in three states and left a trail of total devastation across the florida pan handle. >> jeff flock has following it all for us live right now in panama city beach with more. good morning, jeff. >> cheryl, lauren, with good

morning to you. we've now had a day to assess the damage from this and i'll tell you sometimes we talk about storms that we with predicted were going to be bads and they weren't quite as bad. this is one that was every bit as bad as predicted. maybe you see some of the destruction bpgd me it is widespread. but it's now clear where ground zero was there's a town called mexico beach, it's not far from where i stand here. it got the eastern half or portion of the hurricane. the worst of the conditions 155 miles per hour winds i think pictures there speak louder than anyone's words could. it is virtually a town where -- it's not that nothing is left but all structure damaged in some way. it is a town of about 1,000 people ab third of a population there is 65 or older. we're told by local authorities

that between 250 and 300 people actually rode it out. and many of them have incredibly heroing stories to tell. listen. >>total devastation. piece of property if it isn't got something wrong it. it's leveled. >> our lives are gone. our lives everything we have is gone now. and we lost our cars, everything. >> again, the damage is widespread, cheryl and lauren, but that is the place that really was leveled with those very strongest winds that's the positive is as i've said yesterday that it was fairly closely concentrated. panama city also, of course, also hit very hard as we see in firs out of there as well but i can with report to you that there's a very strong relief effort and recovery east there is a lot of resources being put into the panhandle of florida right now. and that is the good news. >> jeff mexico beach is

basically still unaccessible is that correct? >> it is. we got to fox news got a crew in there mike tobin of fox news got in there yesterday. trying to get there today and you don'tn't to get in way of emergency responders because when it is that devastated it is dangerous and don't want to cause problems for anybody but you want to get firs out because that is what tells people just how serious this problem is. and it is very serious. >> jeff flock great reporting as always from florida. thank you. >> thanks cheryl. thank you. lauren: investors putting money become into stocks this morning after two day of brutal selling let's take a look at futures up 182 looking at the dow up 87 looking at the nasdaq and still ahead for you the days of cheat money for home buyers could be coming to an end as mortgage rates now soar it a near 8-year high, the implication was that on housing and the economy

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what a fortune overnight after two days of pretty heavy selling. futures on the rise this morning looked a dow up 170 points right now and premarket. s&p is up 20 and three quarters nasdaq is up 85. the big story is overnight that the president of china and president of u.s. mr. trump may meet at the g20 that has given markets something to be positive about. lauren. >> we have the banks reporting earnings and a look at what they have to say that could change so stay with fox business there's also this one-two punch for high buyers and mortgage rates surging above 5% we haven't seen rates that high in more than 7 years.

how does this not only affect market but also psychology of home buyers we bring in of price house waters cooper rich happy friday. >> good morning isn't it fry yay. >> i'm curious we seem to be stressing that mortgage rates have that 5 in front of them 5% but is that baked into the market for many realtors and prospective home buy centers >> it is to some degree all e no to 5.5, that could be a different story and you mentioned that the top, the low inventory which was driving up prices if this or were to reverse to cheryl's line from earlier reverse fortune and slow down the the growth in prices, that would also help affordability so i don't think on margin this is a bad thing right now. but if rates are continue to spike, at some point you're going to start pricing some buyers out of the market. >> e yeah. and then there's tax reform in april it might be sticker shock for a lot of folk who is especially in blue states high tax states like new york, new

jersey, connecticut, illinois, you know, with a cap on the state is and local tax deductions, they're going to feel it. right? not seeing any shift in population or anything like that? >> that's or already happenedded lauren so even before tax reform was passed back in december, we saw a shift of people moving out of the blue states in favor of red states or -- actually in favor of those states that had low or no income taxes let's put it that way so seeing a net migration to people in florida and people to texas. and that's a bit of a force of nature. put on top of that, the fact that the home mortgage deduction which is still alive is capped but state and local taxes as you reference are not deductible over 10,000. that is influencing buyers decisions right this second. >> when do you think home prices might begin to come down? >> well two things one is if we miraculously saw more inventory in form of new homes constructed

or people selling homes that would be one thing but i would say towards the end of this year, we're already baked in so we're going to have to see what happens in buying season in 2019. and if there aren't enough buyers in market prices are going to come down. >> that's the thing at christmas for the home builders home sellers it is past now this is the dead season right? >> this is the slow season where people sometimes pick up deals but fact of the matter home buying season starts in early spring goes through the middle of the summer. and that's when the rubber is going meet the road and if we find ourselves a half a percent higher maybe that's okay but more than that, i think that's going to, you know, get people to pump the brakes a little bit. >> chances of the federal reserve hiking interest rates three times in 2019 that has declined for past couple of days because we've seen shock to the stock market. where do you see the 30 year fix rate mortgage being by the end of 2019? >> obviously, that's going to depending on where tenure

treasury is. but i would say it is going to be noters of five. but not too much north of five because i think -- >> not to six. i don't think we're going six what's interesting is my take on the market i think the stock market is trying to -- i know the president is trying to shed federal reserve a message but market is trying to second federal reserve a message had is slow down we like economic growth. and higher rates could potentially stall that. so housing market is going to sending a similar message perhaps. >> so good to see you on this fry yay. enjoy your weekend. >> you too. cheryl: you can say fry yay today because as futures are telling us right now -- we may have a different story today we pulled back a little bit overnight but from session high of the future market anyway but dow sup 168 right now and premarket and nasdaq sup 88 l and a quarter. and we're going to have much more on the wild market ride it was another roller coaster day on wall street yesterday but not

everybody is spoofed about the volatility. >> that's a long overdue correction and lead the way. i think cap in china were too worse. me, i'm betting on u.s. economy. there you go larry kudlow but bet on tech right now are beaten down now right for the picken? coming up you're watching fbn:am. ñ??w

>> so good and so strong right now. a strong economy with higher interest rates was the worry but things might be turning around or reports overnight that president trump will meet with china's reversing that selloff. >> investors don't want to sell into the weekend as well taking a look at your futures on this friday. we've got a different story for you dow is up 17own premarket s&p up 21 and a quarter and nasdaq is up 90 points the

nasdaq looking real good up one and a quarter percent. >> up so good to say and to hear it is the relief that we're seeing this morning after this. the dow down 545 points yesterday. almost 1400 over the fast two day. >> energy stocks led market lower after 3% drop in oil prices slightly up today at 7147. >> yield on tenure treasury holding steady 3.17% investors put safety yesterday they bought bonds and gold. and in europe a bounce back to show you real good here. tech stocks moving higher. in those markets, a sea of green in europe. >> news of that potential meeting between china and the u.s. with age market check out hank sang up 2.1%. >> we continue to see stunning pictures of destruction on the florida panhandle one town completely flattened fbn:am kongtses right now.

coming up on 5:30 in the morning on 12*9 of october friday everybody thank you for joining us i'm lauren simonetti. >> good morning everybody i'm cheryl casone different story for investors this morning. lauren. lauren: before the bounce back this morning we do have to show you broader market. it was down 6 day in a row to in perspective longest losing streak in two years mostly on fears of interest rates going nowhere but up. >> dow yesterday losing another nearly 550 points 5.45 and change and we have christina at the new york stocks exchange with with what fueled the selling. >> you have all three markets close in the red and down 2% nasdaq down 1.25 percent and financial so what's going on? we've had this talk about inflation climbing higher that could put interest rates higher. and that waved on yield but if

you look at the tenure that actually had the yield at 3.15% which was lower than just two days ago so they're seeing that because we have inflation numbers for september lower so inflation is not climb as high as we thought. we move on to oil, though, oil close lower at 2.30 losing why is that? we've got numbers some reports from the energy information administration the eia saying that domestic crude numbers supply of domestic oil in the united states are actually climbed 6 million barrels that was higher than anticipate sod increasing supply opec as well as russia with about a statement saying they too put out higher oil supply in the month of september so that's weighing on oil that's weighing on energy sector you're seeing marathon being biggest lager you have chevron as well as exxon and last but not least i want to end on gold because this is first time in a while with a up tick in gold climbed 2.7% higher we

haven't seen that since brexit there you go lots of movement with the same four today. back to you guys. >> crazy day crazy week for the stock market. the market seeing worst two day stretch in eight months. >> as volatility goes up. tracee carrasco joins us with more on everything we've seen this week. good morning, tracee. >> what a difference a week makes last week the dow was hitting all time high in 50 points away from 27,000. the dow and s&p 500 down more than 5% for the week. the nasdaq down almost 6%. wall street hasn't seen a week like this this bad since march 23rd also dow jones transportation average and russell 2,000 both fell into correction territory this week and saw a weekly loss of more than 7% and more than 5.for the russell 2,000. this was their worst week since january 8th. >> interesting because back in february it plunged 1200 pingts and we didn't really, we came become and market had a great

spring so good stuff. tracee carrasco. thank you. lauren: well technology and internet stock at the fore front of wave of selling this week as we've been telling you about investors worrying about many things including higher interest rates and nasdaq down 316 points wednesday. up this morning looking at futures, so up 90 points. let's bring in on owner of stock to talk about what's going on with big tech primarily and i say that because more says we look at these huge names in technology netflix amazon and google they're in correction are mode. good buying opportunity? >> no. i wouldn't buy dip at any stocks is an about i wouldn't buy dip in the market what you want to really wait for is market to recover from selloff. remember we've had a lot of weakness in last week and did make new highs as tracee said in dow in last two weeks so hold off hard and fast an this morning is important to market because big banks report now the

market opens significantly higher, this morning and i would say 26,000 on the dow which could happen if jpmorgan chase wells fargo city if they all get up this morning big time on earnings before market opens that could lift all of the market sectors the the s&p, dow, everything including tech. then you see about maybe buying in. but i wouldn't jump in necessarily and particularly if the banks do not report well this morning, you might even see more selling today which would really be bad. so we don't know earnings haven't reported yet for banks but so soon. >> you're so god at explaining things can you explain how higher interest rates affect technology names? >> well as far as -- any company goes, not just technology but any company when companies go to or borrow money, then they're paying more when rates are high. so that's part of the reason why trump has been of the fed because they're raising rates he thinks maybe too aggressively but we don't know what is going to happen between now and

december so maybe the feds going to back off a little bit because we've had this selloff in last week. i don't know. question of to wait and see. >>yeah they're not supposed to respond to market too much. we'll see as you noted netflix reports on tuesday that is a big stock i know you follow it. what to you anticipate for netflix earnings? >> i don't know what they'll report but net flick is one of the strongest stocks in that sector and in market but if you look from previous ties with over 420 and almost dropped 100 point since this selloff. so i can definitely say for one thing if netflix does gp up a report well, a lot of buying is beginning to come back into the stock because of the dropoff it had but then again you don't buy something showing weakness so they could break 300 on earning and sell off hard and fast in ideal world that is what you really want to look for e today. today is a critical day in the market not because we have a big selloff baa banks come out of report and monday morning before netflix you have two more banks. you have bac and charles coming

out monday morning so i'm looking to the financial to lift this market and in turn if they do, it is boing to lift tax it doesn't mean that every tax -- name that comes out of reports in the next month is going to do well. they may not all do well google amazon apple not out until the end of october beginning november netflix is first ones to report but more buying can come in particularly if stock is anywhere near that level any way right now. >> waiting on financials with huge names in technology reporting and a few days with midterm election so many investors saying what do we do and for a lot of them they don't do anything. have a great weekend. >> thank you, you too. net politics is up tuesday and all of the banks in premarket which she's talking about all moving substantially higher. this could be a game changer folks definitely. we have another story you probably saw this yesterday and we're thinking what was going on. a meeting between kanye west and president trump, it has got everybody talking and hollywood

ing pair discussing everything from prison reform to a new kind of airplane and bromance reached a whole new level. >> to not -- it gives me power in a way something about when i put this hat on it made me feel like superman you made a superman. >> different day at the white house yesterday and this meeting come on heels of kim cards shan sitting down with president to get clemency for a grandmother that was serving life sentences. on drug charges and she, of course, was released. by the way hollywood did not like kanyes west meeting with the president in west wing. get it? >> a lot of fuming coming out on twitter about it. yesterday. stay with us. we're going to continue to follow volatile october markets see what is behind the snap back dow up more than 200 points nays dc up more than 100. and coming up more dark days ahead for the shine state as

cleanup begins in wake of tropical storm michael. >> i'll go home and continue to clean out that bedroom in the bathroom and insulation hanging everywhere. >> going to go live to the florida pan handle for exclusive look at the destination from above. you're watching fbn:am.

go to vettix.org. well what a difference a couple of days makes down 1400 over

last two days but look at this futures reversing course up ove 00 point in premarket. 209 and s&p up 25 nays dak is up 106 asia higher europe higher, of course, big report overnight, that president and president trump are gaping to meet at the g20 that helped numbers here. >> one thing that didn't change had is volatility. it is still here and probably the volume too. so we'll helicopter to watch that on the markets today. hurricane michael leaving trail of total devastation plus florida panhandle officials say it could take months to clean up up and to reare build. >> grief joins us now live from tallahassee excuse me you've got a personal connection to that area we're told. a little bit i was playing 75 miles west of mexico beach which was great news ground zero for the impact and condo there with my family for many years whe went up in a helicopter flying

over mexico beach you look at the unbelievable devastation it's just heart wrenching for even poem that weren't there because you have entire homes ripped off their foundations strewn like a toy house thrown blocks up street. you have got bones and hotel, motels crush and entire grids where there's nothing there looks like match sticks were crushed. there was florida officials say there was some 250 plus residents decided to stay behind and we saw while we were there rescue helicopters going in and out and, of course, black hawks -- busy operation because of the operation trying to sift through it. pilot we were with has been flying there for years name is brayden here's what he had to say. >> damage from a hurricane in a area it will be a long time -- so hopefully it doesn't affect

our tourism too much. but it it is great people arrand here hopefully it will rebuild quick. >> it is beginning to be a long time unfortunately before people get down there and see what today brings yesterday was their first day when the first responders could get in there. and start really assessing the damage -- but you know i'll give you a quick context i remember covering in 2013, the ef-5 tornadoes in moore, oklahoma my camera man shoot now wallace and there marking small limited area, of course, tornadoes touch and go and there was a that same sort of ef-5 wungd but on the entire beach front, it is really something sadly we've never seen before and e hopefully never see again guys. >> yeah. it is storm of a lifetime and you know a lot of people were saying if this, if this storm just went a little bit further west it could have been much worse to hit more pop populous

areas but that's not for those that were hurt. but -- >> my family spent a lot of time there and along that pensacola all through there and mexico beach is a very small spore fishing area where you go if you don't want tourists like me coming down there on vacation it is more local but it is unfortunately deck kids of generations of families there, and i know a lot of heartbreak as people see images we're show them. >> hopefully rescue crews can get in there. we've heard earlier that area is what -- unaccessible to our prayers are with people down there. >> that's right. it is a hot zone while we were there fbi we were at in tallahassee so saw rescue crews coming and going working fiercely i'm guessing doing it all night and today as well. >> thank you very much. >> well other top story we're following today, of course, is your money and your market

another brutal day yesterday for investors we could, though, see a big snap back today. take a look at the dow and premarket up 208. s&p up 25.5. nasdaq 111 and nasdaq really gaining steam in the premarket 1.6% gain there and coming up next we're going to go to chicago and into london to get two trade perspective on this market. are they loving volatility? you're watching fbn:am. ing the . in today's complex world, you need a partner that is driven to provide you with better solutions for these challenging times, one that is willing to disrupt the industry, and break free from conventional thinking. (thudding) we are a different kind of financial company. we are athene, and we are driven to do more. so, the whole world is talking about ai. big, bold promises like...

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been a volatile week for your money investors cash out of stocks own wednesday and bought safety and gold and bonds yesterday and while they're buy a lot of stuff today take a look at futures dow up 206 nasdaq 113 s&p gaining 25. >> looks like buyers might be coming back to markets we also have europe and asia trending

higher. people may be returning to market right now. are there enough investor ready to jump back in to end this and also what can we expect today todd above trading with us and in london got craig great to have you both here. >> good morning. all right craig -- let me start with you u.s. futureses are higher but news from overseas and while coming out of the u.s. we may have this meeting at g20 between president trump and president trump xi jinping that seemed to give europe a boost along with technology what's the story from your perspective in london? >> i mean, i think any dialogue between the u.s. and china is going to be welcome. i think this quite clear with a major headwind for the market and it is something that contradicted to the clients this week. by the way we expect anything to come from another thing but anything really that takes some of the heat away from markets from past couple of days is seen as a good thing so far markets have gained marginally in

comparison to decline so we need to be a little bit careful on reading into into today moves. >> again it is how we close not how we open so reminding viewers that have. but at the same time todd if you look at what happened in the interday with dow yesterday there was this 15 minute piece of a market that was 2:30, 2:45 eastern time with a 4 point drop that was one big sell order, the average investors wonders am i really left out of this market is it all about traders and fun managers and hedge fund what do you say to that person that's watching and gets a little nervous? >> i think that what you need to do cheryl is if you're an investor most of the people watching here are investors they need to not worry about these lips that happen and big sell owners in thin markets that are extremely volatile, and markets are going to move. i mean markets haven't changed i've been doing this for 39 years and markets haven't change haded computer or no computer they move fast and when you're

in a wild majority you see big drops and rallies overnight another up 300 points on dow so see a lot of this wild swinging volatility best and investor to close your eyes and not worry about it. because again market will find their equilibrium again and see with earnings coming out because what will happen is guide lower and i think more selling pressure and i wouldn't be surprised if we ended up lower today. >> we were looking at the fear gauge we call it at fox business craig and that showed we might new high this is week and volatility is coming back but at the same time we have a nice volume yesterday 11.3 billion shares, that is a very high level of volume that shows that this selling was actually real craig yesterday that was real money versus a low volume day with volatility you have high

volume, craig. >> absolutely. i think that's a very important point days of high volume when we see move they sunlight is it is more substance to moves than i days of low volume with spikes and volatility as alternative. i think it is just relates at a fact that there's a lot of underlying risk in the markets right now. investors are nervous and we went through a couple of days when it looked as though we were going to pull through this earliers in the week into last woke and seems that we hit that point in which investors decided it is too much and we saw that to the exit. i think it is just part what have we need to get used to in this environment right now. >> what we've gotten used to todd an you mentioned this earlier electronic trading but human beings that are pushing buttons if you look at the trend we're seeing right now a manage or hedge funds a lot especially the etf manager are waiting until end of the trading day to make their move because this have to track the index that they're being paid to track whether it is the s&p, or the transport take your are pick

even msti so that telling me again selling real and that we may have this end of trading day push. that we're going to have to get to as the new normal. >> i think that's a great point cheryl and other thing to look at here is people get margin calls and we know that margin debt is is at record highs right now. so not only do you have fund manager pushing it late in the do but coming in between 20s 30 and 4 as well so late day push down usually because it create more volume and deeper selloff because we start to trigger some numbers that make them go down further that's been a problem for years is that when you get too much margin and people are forced out when you get wild moves you see a heavy volume add in the etf that makes for a wild party. >> that is one way to look at it i like the positivity thank you very much for that trader

perpghtive it always is very helpful i think for ow viewers to hear from thank you. >> liz claman has most fascinating hour of the day. thank you everybody. [laughter] too hot to work? nah. this is the gator xuv835. with game-changing heat and air, it's never too anything for anything. the full value oft wyour new car? you'd be better off throwing your money right into the harbor. i'm gonna regret that. with liberty mutual new car replacement we'll replace the full value of your car. ♪ liberty. liberty. liberty. liberty ♪

. . lauren: good friday morning to you, we are seeing bounce-back of two intense days of selling that took 1400 points off the dow. stay tuned because we have dow components and big banks

including jpmorgan reporting this morning and the third quarter is so important because often times investors get to hear what these big ceo's have to say about the full year. cheryl: we should also say that the dow is still up 1.3% year to date even despite what we have seen over the last couple of days and then you've got the green numbers, you also have positivity in europe overnight. a lot is technology names that are moving european markets higher in particular the ftse, strongest market, a lot news with the potential meeting between president trump and xi jinping that we have been hearing about. lauren: seems like that potential meeting and maybe a compromise, a deal, a resolution on trade is what is moving asia to the upside in a big way this morning. asia has been hit very hard, nikkei is almost down 5% this week. the shanghai composite in china up about 1%, the hang seng in hong kong up over 2%, so it really is a sea of green across

the world on friday. cheryl: the u.s. story still, this is a big piece of why we have seen pressure on the markets, really, even going back into september, that's the 10-year, we are at 3.17% right now, we are pushing 3.2% and obviously if you will have higher interest rates that makes more expensive to borrow for consumers, more expensive for corporations to borrow, this could obviously add to inflationary pressures in the economy and could signal, this is the fear, more interest rate hikes from the fed and we will probably get likely to got another one in december, that's the bet right now, we will have to see. lauren: interesting because there was an 83% chance when you look at the fed funds futures that we would have the fourth and final for 2018 interest rate hike on december but now it's down to 78% and we will see about the expected rate hikes for 2019 but as we were saying yesterday, with so many of our guests it's not that the fed is raising rates it's the speed at which they are raising them.

cheryl: that's the fear. lauren: might be the new normal. cheryl: look at, lauren, you've got unemployment at 50-year low right now. you've got gdp at 4.2% in the second quarter, you small business optimism, the best since 1983, so it's not like we are sitting on some crisis, the economy looks really, really good. lauren: what cracks are we not seeing and is the market with the selloff seeing a crack that maybe most investors don't. we don't know. we do know it's friday and i hope you have a great weekend. cheryl: maria, look at the futures this morning, maria, here we go with completely different story, i know we talked about cleansing yesterday. maria: yeah, well you know what, we are looking at a serious decline in the last two days, i would expect some people to see as buying opportunity and come in, obviously what you guys have been talking about is the key question, how much longer does the selling last or are we past the worst of it, we are watching that this morning, good morning to you, ladies, we will see you in a little bit, good morning,

i'm maria bartiromo, happy friday, it is friday october 129, your top stories right now just before 6:00 a.m. on the east coast. a bit of relief rally on wall street this morning, futures indicating gain, pretty, 186 points on dow jones industrial average, nasdaq and s&p 500 also higher. check out nasdaq up 105 points right now. 1 and a half percent higher on the nasdaq. elsewhere it is looking like it comes after rough session yesterday again we closed tat lows, just shy of the lows yesterday, the dow and s&p 500 down better than 2% on the session, the nasdaq down better than 1% close to 2% there on the russell 2000 as well. the russell index has entered correction territory, that's down 10% from the highs of most recently. well, the global markets taking cue from wall street edging higher, cac quarante in paris up

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