since may. five-month loy for s&p 500. dow touching lowest since july, lowest in four months. nasdaq has touched lowest since the beginning of may. stuart: it's a selloff. the dow is almost exactly 2000 points below the all-time high reached just three weeks ago. time's up for me. but neil, it's yours. neil: stuart, thank you very, very much. we're following all of that. a couple developments could change this. we're looking to anything that could provide an opportunity to turn things around. the volume has been so strong here, there is a possibility that many companies and individuals who run those companies would have wider flexibility to start buying back their stock. that is usually, for example, limited to what, 25% of whatever that day's volume is in a particular issue. with trading volume running markedly higher on day like this, that is among the things you want to see. companies wanting to see if the

stock is battered would be inclined to buy back shares. after the close, how many individuals or companies did that. no way to tell. we're following ahead what will be more closely scrutinized than normal gdp report for the third quarter due out on friday. the expectations it will surge about 3.4%. versus 4.2% advance in the second quarter. if you get anything north of that, or pockets of that showing strength, that also could be a a salve for the markets here. we look for these type of developments. we're following same low oil prices that has energy stocks getting hammered right now of the flip of that, lower energy prices oil goes, despite all of this, maybe because of all of this it provides, sort of a low inflationary floor, that could ease up on the federal reserve to hike interest rates. you like like developments to reverse what is going on. they don't always pan out.

nasdaq there, is inflection point getting back into correction territory. whether a lot of buyers come back in to buy the same technology stocks. they are not for the time-being doing that when it comes to the likes of amazon, apple, facebook, microsoft or alphabet but you do wait to see that. whether small cap stocks would benefit from official reads, for example, the russell 2000, a sort of collection of largely small company stocks is now underwater for the year. i only mention this next sort of shoe to drop, to stop the drop. people dive in, what they think are oversold conditions. as you in the eye of the beholder of course. i hasten to add as markets take it on the chin. concerned about trade, disruptions in europe, concerned about frictions with china, concerned about saudi lies. all of that, go to market watcher larry glazer and matt cheslock. what do you look for to

potentially change things, whether buybacks or companies or individuals getting brave or what? >> sentiment has been pretty bad the last couple weeks. we have seen market rallies fade throughout the day. that is disconcerting if you're a trader. yesterday's reaction, shanghai up 4% to start the day. a good monday opening. fading through the day. now we're continuing that trend. we need a change in sentiment. possibly hoping that would be around earnings. that is not provided it. that is kind of a one-off. you're seeing mcdonald's perform very well but other ones really suffering. until that mantra, the psyche changes, this market could hopefully, just traded sideways -- right now the glass is definitely half empty. neil: to follow up on that, mart, mcdonalds doing well, higher priced menu has the stocks appreciably well, higher by nine bucks that is something

that surprises the street on the upside, but even when we get better-than-expected earnings out of companies, either their guidance worries folks or environment doesn't look as good. caterpillar comes to mind. boeing, some others come to mind, 3m, what is going on? >> caterpillar would be the prime example today. earnings were not there. top and bottom line beat. forecast was in line but they lengthening it a little bit. to account for something they can't account for in china or maybe energy costs so they have a chance to beat that i heard one analyst say they didn't beat by enough. well, they beat. that is what the market is being looking for now. that is what i mean, sentiment changed a little bit. that we'll hopefully get changed now that we get pe values a little more attractive for the investor. neil: that is interesting. hairy i want to follow-up on the caterpillar issue with you. rattling the street, down more

than 20% of its highs, the notion it is facing higher and material freight costs as a result of higher steel prices and tariffs. it is the first and strongest clear indication that this trade war with china is weighing on them. what do you think? >> look there is no doubt when the nasdaq has its worst month since the financial crisis you will get people's attention and there is a change in mood on wall street right now and that change in mood went from happy-go-lucky, very optimistic, trees grow to the sky, this will be real easy optimist environment where everyone is worried about global synchronized global recession. look at caterpillar earnings, 3m earnings. caterpillar hat great earnings. q3 was the best ever. concerns are they didn't raise guidance. valid concern. maybe we're at peak earnings. that is far cry from being in a recession. people --

neil: to matt's point, i found this fascinating, he didn't, used to say we slough off the worries and focus on the good. now we focus on the worries and slough off the good. is that seminal shift or brief one? >> i think the market was unprepared. people were prepared for a bond bubble. prepared for the economy to be too hot, fed to raise rates, moving into cyclical names, tech names, moving into companies not making money off ipos. they have to have a balanced posture. earnings may grow at the clip they weren't expected to grow at. trade concerns, earnings were not the only issue today but they were the catalyst for the selloff with 3m and caterpillar. the big issues we have the geopolitical concern on trade. earnings is where we are playing on field. input costs could be a concern and could be remedied if we get through trade and midterm elections. the party could be over in terms of making this a easy run if

some issues are remedied. but they don't know if they will be remedied so investors want to take a cautious posture. that is a good thing. if volume gets real high going into earnings season we'll see real buying opportunities we haven't seen in some time because the rate of the market decline is really accelerating that is sign for investors with cash, or nimble. maybe they're too optimistic, feeling the pain right now, justifiably so. neil: matt, is this cheaper, more viable, affordable market for you? >> funny that you never hear the people dollar-cost averaging on the way down in market like this. you generally hear on the way up. neil: you're right. >> you want to start putting money to work if you felt like you missed the market. if the pe is more attractive you should be buying it. we're seeing signs, gold is strong today. we're seeing the 10-year strong. >> that's right. >> there are signs maybe there is a little bit of hesitation

right now and they want to see if this selloff gets overextended before they start to enter the market. neil: guys, thank you both very, very much the with the dow down 400 points. down 1 1/2%. nasdaq is down 10% from the highs reached in early october. how all of this could affect midterms two weeks away, and ongoing back and forge between the saudis. louisiana republican senator bill cassidy. good to see you. are you worried with what is happening here? >> fundamentals of the economy is strong. tax cut, jobs act year, five-year immediate expensing for long-term capital investment, gives a nice solid reason for businesses to continue to invest. i wonder and think some of the selloff related to the uncertainty of one thing previously mentioned, midterm elections. democrats are saying they want to repeal the tax cut and jobs act bill. they want to go after corporations. i would be a little hesitant if

i thought they may take back the house. i am hoping they don't. neil: saudis, war of words is escalating a little bit. german chancellor angela merkel saying, until they clear up all this stuff, we're not shipping anything to them. she was talking about arms shipments and the like. we of course already have a 110 billion-dollar arms deal. should we hold of off for a while see what they say because their story keeps changing on the death of the journalist. >> the death of the journalist is terrible but our long-term strategic relationship with saud sudden of key importance, vis-a-vis iran in particular but partner with israel vis-a-vis iran. we need to work through this, get some accountability, but recognize long term for the united states it is important to have a saudi relationship which is strong. would i like to preserve that relationship even though right now clearly there are issues that must be addressed. neil: do you think these concerns about saudi arabia and

their relationship even economically with us and then what's happening in europe and concerns that european union is facing its biggest test yet with italy, all these foreign crises that never really directly affected us are now and chickens are coming home to roost? >> i would argue, we are in a better position than we've ever been as regards foreign crises. we've become more energy sufficient. neil: but haven't we created some of them, senator? by that i mean in the case of caterpillar talking to tariffs and the effect that is having on the pricing of its goods and the stuff it tries to import that it is very clear the effect is real for them? that this trade war isn't working out so far? >> actually what i heard from your previous is that the stock market that caterpillar looking down is almost irrational because their earnings have been doing better than ever. so at least very good i should say. neil: it was guidance, sir, that

alarmed some folks and worried about tariff-related costs going forward. you're quite right to say numbers were better than expected but guidance worried folks. >> i get that the guidance will be worrisome regarding the tariffs. there will be some economic fallout but i think the united states economy is poised to do well, knowing that they have overseas markets to degree which energy costs stay lower. another reason to take care of the issue with the saudis, so they keep international oil prices lower. that the economy worldwide continues to grow is something that will improve the outlook for caterpillar. tariffs will be an issue, let's face it. but worldwide growth is a bigger issue. we need to look towards that, keep that going forward. neil: real quickly on the saudis, you touched on it, senator, unlike the germans, we're on a wait-and-see approach. we want to still work with the saudis. angela merkel seems to be of the opinion that she doesn't trust them, doesn't believe them,

doesn't want to do business with them until they clarify this story. you don't think that should be our approach? >> you know, we do need them to clarify the story but long-term it is of importance for the entire world to have strategic relationship with the saudis, both in terms of their ability to influence worldwide oil prices and therefore the worldwide economy as well as their linkage with us as regards iran. if iran had nuclear weapons we would not even be talking about anything else but their ability to deliver a nuclear weapon. so, we need the saudis as we, if you will, address that issue with iran. the, the death of this reporter incredibly important but long term we need to maintain that relationship. that is what i'm emphasizing. neil: all right, senator cassidy, great catching up with you. great seeing. >> you thank you. neil: i already told you what the germans had to say about this, they're not shipping

anything to the until there is full accounting what happened to that journalist. our ambassador to germany, ric grenell on that, after this.

neil: foss-moving market conditions.

nasdaq dipped under its highs. it had been north or i should say south of 10% for a while here. there does seem to be a common theme with a lot of companies and stocks hit particularly hard beginning with caterpillar. i mentioned that again and again. it is already in bear market territory. was down 15%. down additional 6 plus percent today on disappointingfied dance here, these higher material and freight costs driven by higher steel prices and tariffs are having a material effect on earnings. remember when autos added to that the same, higher interest rates was whopping it for auto dealers and the like and technology as well but seems to be a theme that comes up again and again, trade war friction with china and compounded by the chinese telling american businessmen overnight that it has no intention to kowtow to the president's demands. i'm pair phrasing here. add it all up, get a sense how

the trade issue, particularly with china is beginning to resonate to the bottom line. that all began with walmart hinting with buyers during christmas shopping that might get a case of sticker shock on the shelves. let's get the read from lauren simonetti on floor of new york stock exchange. >> i want to talk about the nasdaq a little bit because this index has been crushed down almost 10% from the recent highs. in fact lowest level since may. we have five trading days left in october. that's it. then october the volatile month is out of here. a lot of people will be breathing a a sigh of relief. it could be the worst month for nasdaq in a decade. if you look at the big tech names, the popular names like facebook and amazon and netflix, they are down sharply this month, many of them like alphabet down double digits, all of them are down and down sharply today. but what is interesting is, they don't report earnings until later this week, if not next

week. they're not a reason for aoff today. the biggest reason for the industrials hit on the dow and hit by china. take caterpillar, a bellwether for china. everything you noted, neil, they're warning about higher, raising their prices, not raising their earnings guidance because they're getting hit by the taxes. that stock is down nine dollars as i speak. bank of america merrill lynch, the strategist who called the 2015 china blowout for stocks, he says this situation with china is only going to get worse. we haven't seen the end of this one just yet, neil. neil: lauren, thank you very, very much, lauren simonetti. pass along an item across residedders about saudi arabia. why in our country we sort of go slow looking for punishments for saudis in the role of the death

of jamal khashoggi, "washington post" journalist. they print money, huge deals. 50 billion-dollar deal announced in the oil, gas, infrastructure arena saudi arabia signed with the likes of some interesting companies that cover the gamut from hyundai to total, the energy concern, narenko, a energy concern, schlumberger, baker hughes in the united states, swiss-based company also part of that. a long-term effort to look at oil, gas, infrastructure expansion opportunities in and beyond just the kingdom. this is why we don't turn away from saudi arabia when they're talking that kind of money, on top of 110 billion-dollar defense deal we scored with them last year. if you add it all up, better than $400 billion worth of deals scored in the last two years. let's get the read on all of these deals, what is going on across the globe, how it is impacting us, former investment banker carol roth.

this is another reason why it is easier said than done turning away from the saudis, right? >> it absolutely is. if you think about the saudis and also some of the other counterparts in the middle east, i mean these are bad actors that have done a lot of horrific things over long periods of time. so certainly the killing of the journalist is a horrible situation but if you look in the grand scheme of things, it is one in many things. we haven't part and parceled that as a reason to do business or not to do business. i think that is why we've been going slowly here. neil: obviously the germans said enough, until the saudis explain what happened to this journalist. no more deals. again, easier said than done if it drags on a while, but could this have measurable, meaningful impact now? what do you see happening? >> i certainly think in the short term, if you add that in, with the trade wars, if you add that in with some of the

currency issues of some of the emerging markets are facing and the like, just the overall geopolitical tenor that is something weighing on the markets, i do think at least in the short term we'll see continued volatility for the next few weeks, perhaps even longer. neil: are you surprised, looking at a lot of numbers coming in from corporate america, how many, particularly when it comes to those sensitive to trade frictions like caterpillar, like 3m, are citing trade tensions, higher costs from tariffs, metal, all the like hitting their bottom line or likely to? >> no, i'm not and i feel like we have discussed this in the past, neil. this was the big concern that when you look at things like trade and tariffs, that is not something that is going to necessarily affect china. that is going to affect the american companies and that is what we're seeing in terms of these forward-looking numbers. reality is, while we have a strong economy, we have strong

earnings, the market is forward-looking, already priced that in. to the extent we'll have higher costs, that needs to get repriced into the market. neil: we'll watch it closely, carol. you were on top of a lot of these chinese trade phenomenon. they're not going away to your point. taking a look at the dow, it is down 347 points. obviously fast market conditions here. what do you look forward to turn something like this around? you usually look for companies that have seen their stocks battered to buy back the stocks. when you have a high volume as you do today, they're more inclined to buy back more than normal be the case. with ceos and senior managers, we got little evidence of that. we will find out after the close of trading or later in the week, that could be a significant and important development if we see it happen, because it would show that wall street, that a lot of these guys are betting with their own money, this is going too far. until, until they do so, it

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neil: we're following these saudi arabian tensions on word the cia director gina haskell is meeting with angela merkel, who has been on the wires, making statements that he knows a lot more about the killing than he has stated before and wants to outline it to officials and the general public, including reports as to the exact place the journalists body has been buried. that of course on the heels of reports that secretary of state mike pompeo is going to make a statement on all of this at around 3:45 eastern time today from the state department. so these fast moving developments, to blake burman at white house with more. hey, blake. reporter: neil, remember at the white house president trump said he was not satisfied with the

explanation that saudi arabia gave over the weekend as it relates to the murder of "the washington post" columnist, jamal khashoggi. turkish president erdogan echoing those comments, he believes, his company believes this was a planned operation which khashoggi was killed and erdogan went on to say he wants the 15 or so operatives involved with this, extradited back to turkey. our friends over at sky news today as well reporting gruesome details about the missing body parts of khashoggi. the sky news is reporting that some of his body parts have been found, which they say he was dismembered and that certain parts of his body were cut up as well. the vice president, mike pence, saying today that what happened to khashoggi was a barbaric act. >> the word from pert erdogan this morning this brutal murder was premeditated, preplanned

days in advance flies in the face of earlier assertions that were made by the saudi regime. again it underscores the determination of our administration to find out what happened here. the world is watching. the american people want answers. and we'll demand that those answerses are forthcoming? reporter: you mentioned a couple key players in this administration, cia director gene ma haskell, this morning that she is in turkey. when she gets back to the united states she will brief president trump what she found and later this afternoon, the 3:00 hour, secretary of state mike pompeo will be briefing reporters over at the state department. this issue surely to come up. neil. neil: to put it mildly. thank you very much. blake burman. just moments ago i had a chance to catch up with the am a ambassador for germany, ric grenell about all of this, and what the germans are doing about all of this.

this news today that germans could buy more liquified national gas from the united states as a time president trump is pushing that, what made the germans change their mind? >> i think president trump's resolve, no question about it. from the very beginning president trump made it clear we would make regulatory changes in his administration. we would do everything we can to make it easier for u.s. companies to supply liquid natural gas this year. we became the world es largest supplier of liquid natural gas so it only makes sense europe is now going to start getting more of u.s. lng. what the president said to chancellor merkel in front of me was we wanted to make this happen, we wanted to figure it out, so we went work on it. we've been working many months. the chancellor has now indicated they are going to invest in one of three possible sites. they haven't announced which one

but there are three possible site in the north of germany. one of those sites, possibly two, we hear, the german post is going to invest in. they haven't announced how much. but they have announced they will invest in at least one, possibly two sites. that means that for the first time we are going to have an lng terminal in germany and it is very good news. neil: but that terminal, getting it set up and running could take quite some type, right? >> it could but a whole bunch of companies are very eager to u.s. companies, to build it, be part of it. three different sights have teams of people looking a at the financing a, moving forward. having the announcement from the germans that the german federal government will put money into this is really a game-changer. because that means the terminals will get built and that lng will

come to germany. the significance of that is, it will help europe and germany really diversify its energy needs which is exactly what need to happen. neil: i know you have to be careful as our german ambassador but there was a report, a good deal of reporting, sir, that we had threatened angela merkel or other business interests in germany if they didn't do this and it came on top of reports that she and the president have a very tense relationship. what can you say about either? >> i have seen them together and i completely disagree. they both speak very bluntly. i think there is a great respect because. they also speak the same language, from jobs and economy. chancellor merkel is leader of largest economy in europe. president trump understands that, respects that. certainly we have our

differences, work through those. we have years, decades of being great friends. the transatlantic alliance is pit on this alliance the idea that friend get to talk to each other. one point on that, we have asked the germans, for instance to increase the defense spending. they're not spending the required 2% nato requires members to spend. we've been very forceful. i'm here in germany reminding germans every day, we're not asking russians, we're not asking the chinese to increase defense spending, we're asking our friends, the germans. neil: that might be so. you said both the president and angela merkel are certainly blunt. she was certainly that few weeks back where she fingered the president's provocative rashes at the united nations. i believe destroying something without developing something new is extremely dangerous. she found his words, his u.n.

criticisms unwarranted. what did you think of that? >> well, i think we hear that every day from everyday germans they believe that they can purchase russian gas and not have a problem with the russian influence that also comes through those pipes. we disagree. the europeans, largely disagree. so this is an issue where the germans have to convince the europeans because the americans and europeans are on the same side. neil: i mentioned the united nations, your name am a ambassador, has come up a number of times as ideal replacement for nikki haley. many in the administration support you, including john bolton, a host of others. you were seen a little more than couple weeks ago. that got tongues wagging that you are indeed a replacement. what can you tell us? >> look the it is a huge pleasure, i will give you the line, it's a pleasure to work for this president. it really is. anyone who gets to be a part of

this national security team is living history. they're watching us really show the world that what we mean is what we say and, therefore, i think it's, one of those things that anyone would want to be a part of this team. i love this job in berlin. i will do whatever the president asks. i will say that my last meeting, i talked exclusively to the president about german issues. neil: he didn't fly you back to say, hey, i want to see what you're up to, richard, whether you like this job because i have another job in mind? >> no. neil: all right. >> there is a lot of issues on the table. neil: would you be interested in that job? would you be interested in that job if it came up? >> neil, i will give you the line that i search at the pleasure of the president and it's a pleasure to serve this president. neil: you have been in official diplomatic circles for so short time but you got the speak right. i give you credit there. let me get your take on world events right now, particularly

saudi arabia and what's happening. angela merkel already said there will not be any german arms exported from saudi arabia until this kill something cleared up. it must be cleared up. as long as it is not cleared up there will be no arms exports to saudi arabia. i assure you very decidedly, what do you make of that and should we have same posture? >> look i think this case is extremely troubling. the drip, drip of facts have been extremely concerning to us. we got to get to the bottom of it. i think there needs to be an independent investigation. we need to have assurances that what we're being told is the truth, and that we can get to the bottom of it, whoever is involved. whoever knew about this, whoever is involved in any possible way, needs to be held to account. neil: do you think it is safe to say that the saudis have lied to us, at some level and at some minimum? >> i mean, look, i think that

the facts have completely changed as they have rolled out. it is obvious there has been a differing story. we have to get to the bottom of it and i think there needs to be independent investigation. neil: we're already getting word as well, sir, vladmir putin is telling national security advisor john bolton he would be interested holding new talks with the president. as the president wants to rip up the 87 accord the russians signed with mikhail gorbachev and then ronald reagan. what do you make of that, and what developments on that? >> ambassador bolton is over in russia. i think i will leave it to him to answer those questions. he and secretary pompeo are on top of this issue. i certainly don't want to get in the way. neil: finally your sense, we have a volatile market, normally that is not your area, i understand that ambassador, but led to concerns that the world market run-up, it is gyrating a

lot where you are, and italy budget that fell apart and european union, future in doubt, asia, big selloff there, this could be a growing crisis. what is the read in germany and do you worry that it is escalating? >> look, i hear from ceo's every day here in germany and, what i'm told by them is that, they love what is going on in the united states. they're looking for ways to be a part of the u.s. economy. there is no question that they turn away from the countries like iran pretty easily. they see the growth that president trump has been able to deliver. and it is astounding them. also i have to say, that it is not only just the economic growth, it is not only the just corporate tax cuts, but what is most exciting to german ceo's that i hear every day is the regulatory atmosphere, the way that the government is taking down the roadblocks and the bureaucratic red tape. they see that as a way to really

grow and they want to be a part of it. neil: ambassador, very good chatting with you, thank you, very, very much. >> always good to see you, neil. neil: ambassador richard grenell. a couple things we're watching here, i'm getting more details on this saudi arabia 50 billion-dollar deal scored with no fewer than 15 international entities including a third of them american firms big in the oil and mining area. it is part of a multipronged, multiyear, multidecade approach that the saudis plan to get international cooperation on, looking at ways to beef up not only their infrastructure but look at alternative energy sources in the kingdom. you think that it is just oil dependent but they're looking to get other sources here. everyone and anyone is part of it. i find it interesting they're announcing this deal today as they get ready for this financial confab. a lot of top players of these companies are not sending their top guys but they are sending their number two and three and four guys because they don't

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find your certified financial planner™ professional at letsmakeaplan.org. >> i think is the the stock market is worried that congress will change and overturn these pro-growth policies. i really believe that i think that, the so-called correction and, i've said before, as you know, these things come and go. that correction has to overcome the uncertainty about this election. and i think businesses, large, medium and small, do not want the tax cuts overturned. neil: all right. larry kudlow says blame it on the fears the market has about democrats doing well in the midterms. that would come to news to a lot of these fortune 500 companies,

s&p 500 companies, reported warning that they're feeling pressure of trade deals and the like and tariffs, higher costs associated with them, caterpillar among those, 3m among those. there are a lot of factors at play, to say it's a midterm concern might a little bit creative. i don't know if that is quite accurate. national taxpayers union, mattie duller. dupler. it might work out for them, if we get this trade impasse settled but for the time took it is eating into their numbers. >> it has been an interesting story for businesses this entire year, right? they have got the economic reforms come in the form of tax reform as well as the regulatory changes that happened in washington, d.c., thanks to the trump administration. all of that is happening against the backdrop of meyer tariffs and potentially escalation in trade tensions. businesses have to assess what

the risk is headed into the new year. in this quarter we have more of a firm deadline if you will looking what is happening with trade than we've had in the past and that is because the last tranche of tariffs the administration put into place are scheduled to go higher on january 1. we know for a fact 10% tariff placed on $200 billion worth of chinese goods, will escalate to 25% on 1st of january next year. businesses are saying, listen, we're not sure what happens politically, and economically what we do with that? neil: paul volcker, federal reserve chairman says we're in a hell of a mess. and the tipping point. he is not a fan of this president. he is not a fan of his approach. not a fan how he works with fellow leaders around the globe. accept that with a grain of salt, he is talking about global unrest we ignore at our peril. do you agree with him? >> there are a lot of ways to characterize volatility in this economy. you look at the united states, look at the growth in the united

states economy, it is very strong, stronger than it has been in the better part of a decade. that is something if there is global instability should quell some of that, united states is international leader when it comes to the economy. when the united states is doing well, the rest of the world benefits from that. looking at the way we interact with the rest of the world that is a question. you look what happens next two weeks. iran sanctions are supposed to come back into effect. the united states had a plan dealing with that, united states playing a role stablizing force in the region. we're not sure we can count on them anymore. it comes back to the administration that is nimble and able to assess the threat moving into a new set of circumstances. i think what is happening in the middle east as iran sanctions are coming even nearer, certainly brings to light the notion that we need to have a plan in place, regardless what the other state actors are going to do. we can only control what our policies are here to counteract them. neil: it does continue, whether you support or not, the president's policies, if

something goes wrong, they will certainly not the point the finger at themselves, that is human nature i understand that, we're reminded they see no short term risk to the very clear impact trade policies have with china. to the point we mentioned earlier, it might work out but that is a clear impact on them. they might reverse that scoring a deal with china but it is on them. >> right. humans and companies are impatient beings. that is one of the problems we have right now. as united states companies continue to try to realign their business practices with the new normal of really item employment, nice economic growth, business and consumer confidence growing, that takes a little bit of an adjustment period. unfortunately that is all happening against the backdrop of trade uncertainties that make it difficulties for businesses to plan accordingly heading into the future. if we had trade worked out, businesses can plan better. there wouldn't be hesitation, especially seeing in the earnings call, that fuel so much

speculation comes to markets. we wouldn't see that. administration needs more certainty on that realm. neil: thank you,. to madty's point, there are earnings and the like that have to run back down. a lot of concern about the trade war, higher costs associated with that. nowhere on long, long list of factors on the market, but nowhere is this notion, that larry kudlow said the markets are concerned it will go kablooy with the democrats. that is a factor, consensus building democrats take the house, republicans take the senate. larry kudlow is wrong on that. he is just wrong. it's a misstatement or a lie or both. more after this.

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the >> all right, nasdaq and an out of correction down about 9%, had been down in excess of 10%. deirdre bolton following that one very closely. the >> reading a lot of headlines this morning say netflix is selling $2 billion worth of junk bonds. i made a few calls. one tube the tig analyst rich greenfield known as having the inside track on this company. i don't understand that

headline. he says they have 136 subscribers pay at least $10 a month give or take. show me another company that has this guaranteed cash flow coming guaranteed revenue. if netflix were in the u.s. would be cash flow positive issues they have this international plan and he pointed out if they didn't the stock would've been under pressure for a lot longer. he just pointed out what you been talking about with your guests as well come a meal. this meal. as you hear so often netflix until this moment was just getting caught in the downdraft of that as you highlighted good but not that along a bear market territory and so a lot of people worried about what we've been calling earnings. companies will continue to grow but at what pace, to what extent in the so-called easy money are ready over after night with five-year bull market.

neil: thank you very, very much. no one is doubting the market is going to go into a bear market rant here. we should process with the losses today were getting close to flat money for the year on the dow and s&p negative for the nasdaq in what is turning out to be one of the worst month for an average is especially for the nasdaq. among those will be talking to, apple cofounder, steve [laughter] , first time fox. vo: old and even inaccurate search results can

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neil: let's take a look at what's happening. the selloff after 32 points. i sit down to 180-point drop-off, but we've been down a lot in not doing a good job expect dean to 5000 level on the data case that mean something. a nice round numbers i think it like reading tea leaves. a lot of this is built on concern that the premier dow 30 companies like caterpillar, 3m are among the first to say the trade war and commensurate cost for us are going to particularly in caterpillar's case, which is now well into bear market territory. the fallout right now in the 10 year treasury note. where is money going to the not going in the stocks scared right now down to 3.14% could reveal goes down, the price goes up. let's take a look at gold.

tends to be a beneficiary. stocks are taking it on the chin up nominally today. oil prices are down and that of course is energy and related stocks today. that could be as much concern about a slowdown as anything else. let's get to read on this as "wall street journal" editorial board member here. they've also got swan street part air and ashley webster at the nyse. actually, what is the new down there? are they getting word this sort of thing never goes just when they think they're out of the woods, boom, it happens again. >> if someone says they can tell you it's going to have next airline. a low of 548 points on the dow. since then we've managed to stop the bleeding a little bit. still down 300 points. we started day with worries about china that the ability of chinese authorities to actually help the economy and as you mention we got 3m, caterpillar.

the earliest report gave weaker guidance a disaster. not a good time. caterpillar did read on earnings and revenue and basically a guidance pretty much where it was three months ago. they started talking about extra costs related to those tariffs. it was almost like that. were now struggling because of the tariffs and that the trade tensions with china is doing enough to the races on the downside. i should mention we have brought on midmorning because we got news out of europe the italian budget was thrown back in their face by the e.u. commission and given three weeks to come back with another proposal. just another headwind out there come a dark cloud that added to the selloff. overall, the earnings season up to now has been pretty strong. most 74% of what we've heard from the s&p 500. the big tech stocks this week, tomorrow and thursday.

that will help to soften the nerves just a little bit. there are those that say we need days like this, flesh out, concentrate on the fundamentals are the u.s. economy is going along quite nicely thank you very much. neil: we are getting something that might've been propelling this improvement in getting report on various services that the kremlin is reporting an agreement has been reached for vladimir putin and donald neil: meet in paris on november november 11th. keep in mind that is nine days ahead of the president planned meeting with chinese leaders xi jinping. two very closely scrutinized powwows. i'm sure, aaron, you'll be looking at both. when you make of this development? we've been talking about ripping up the 87 agreement we had when ronald reagan and mikhail gorbachev had a missile defense treaty. the president claims they've been cheating. were ripping it out. >> just in general the idea that

donald trump says he's going to be meeting with vladimir. and and they're staying ahead of the midterms come in the middle of the mall or investigation, i can imagine republicans are happy about any of this. neil: would you want a meeting rather than not? >> i think you would. it just muddies all the issues voters are looking at. neil: interesting. you might've heard before larry kudlow saying this is all about marketing concerns about the midterms. i think and you know better than i come a consensus is built whether it's right or wrong for democrats had the cows come republicans on the senate. but change there? >> you know, the stock market is a big deal. i think for most voters there used to the volatility. there is one person in this country is focused like a laser on what the stock market does. that is donald jay trump. it's his favorite economic rhetoric in the world other than

perhaps the trade deficit. neil: there are risks to that obviously. >> their risks, but voters have observed the volatility of the market. if this market today were related to something larger that were not seen, a kind of october or november surprise come a big economic event, that would be more serious. you alluded to it earlier, the tariffs. we've been arguing for a long time they are not having a significant economic effect. i'm not so sure that is true anymore. they affected china and europe. steel prices in the united states are rising for companies that affect their profits between a billion dollars. kind of a slow poison. whether it affects the midterms or not i'm not sure but it may be suppressing market outlooks. neil: that is a clear effect. whatever deals to score in mexico, canada, south korea, the big granddaddy of them all is

china. it looks like that's having a demonstrative effect in companies are spelling it out from caterpillar to 3m, auto companies worried about it and the cost of their goods. this is the one the president would try to settle sooner rather than later. the chinese don't appear to be blinking for giving an inch. where does this go? is it a factor in the midterms or not? >> i think it was going to be a factor in the midterms. the midterms have been completely muddied by a number of other factors. we were talking about kavanagh. i think it would've affected the north dakota indiana senate races a little bit more if we did not have the kavanaugh issues. neil: really? in what way? >> this is that heidi heitkamp wanted to be talking about. nuanced discussions about trade deals and tariffs. >> does she have a way to claw back at this point? i don't think so.

because of campaign mistakes that have made she's done. the democrats are paying as much attention to her as they are trying to go when arizona and nevada at this point. neil: ashley webster, the markets like it when the stocks are going up. this president and i think is a fair point but was going out and tying itself to that. not so much when it's coming down and pointing fingers at anyone else that the administration for that. but i wonder up or down whether it affects the midterm. maybe a presidential contest, the midterm i don't know. ashley: maybe. you're absolutely right. i'll take the credit when the market goes down. what's interesting to me as there is a midwest farmers who are hurting right now because of these tariffs. i'm the one hand they are hurting and want this thing to

be resolved as quickly as possible in on the other hand they support the president's e-mail and ultimately a better deal and are willing to put up with the pain it's causing. i don't know how long they can do that for, but maybe it's not such a huge issue going into the midterms. as for the market, the president can count to how much they've gone up to come is still remarkably 40% or something on the dow. 35%. these markets despite today's selloff has been a remarkable revelation since he took office. neil: let's get a sense now of what can move the needle on this. we obviously have the situation. the president could remind people in the saudi just not the $50 billion new agreement and american conference concluded shows you that ties the -- dangers of cutting ties with them. one of their issues will determine if the next couple

weeks. >> announcing a meeting with vladimir putin as you're suggesting in an intermediate nuclear missile treaty on the table. we're going to talk about missiles again. the president is kind of flooding the zone said he's not responsible for the caravan. this is a barnburner of the midterm election. six senate races that are tossups. you've got voters in six states trying to figure out calculate among four or five significant things, including the economy, stock markets, saudi arabia, the rest of that. how does that influence their vote? i think it's impossible for us to predict which way that's going. if you bring it down to the bottom line, the state of the economy is determinative. republicans in "the wall street journal" poll are ahead to 15 points on handling of the economy. i think if they're able to run on that it may have been doing a great job, they should be okay. that probably will be the

dominant fact are going in. >> well, look. the economy is the dominant factor that obviously the economy has been trending up in the last couple weeks in the market is coming down some. voters are voting in a big way because they're either aggrieved are upset with the current term presidency. trump is saying i'm not on the ballot they'll vote for me anyway. what kudlow did -- neil: republican voters would not have voted our aggrieved because of what this is seen as democratic. who will -- >> democrats are more great. republicans have control of all the government. neil: it's about getting the angry voters out. my prediction is the house stays republican, but barely. if i'm wrong on this saturday told the guys in the control room from the burden is digital tape if you have such an

ability. >> with what kudlow said today that the markets are buried about a democratic -- neil: i think that's nonsense. but it was smart politics. neil: absolutely blame everyone but yourself. you're right. i see the republicans hanging on. >> you have mitch mcconnell and others saying we'll have entitlement. >> this is all out there. >> trump says they will now have a tax cut. >> erin is right that the house level democrats are tremendously energized in these individual districts. i'm not so sure the level of the senate. i think the house does flip. >> let me just say, if the house flips, what will change? women have a democratic majority by a couple seats but in the senate if republicans keep it there is a gridlock.

[inaudible] >> exactly. so were a status quo. what he said was nonsense that he's doing it to make sure republicans are aggrieved enough to keep what they've gotten. neil: it's factored in this light government tends to be good for the markets. one party controls whether you like the liberal conservative or republican, they light green and they have a lot of green under this system. so there's no guarantee that a split system, a split government is going to keep this going. isn't there concern right now that the latest developments are getting nasty with the saudi's which we don't agree but others do. to spoil matter what. ashley: possibly. look, this market up until now has done quite an amazing job at ignoring all of these things that are going on, admitting what's been going on in china and europe but now the saudi situation we been able to kind

of dislike for the market is able to ignore it. maybe the time is up for these things on the con side of the ledger as close to the pro side is starting to add up and is giving investors pause. neil: guys, we shall see. we're well over a lowe's and i i think as you've heard dan mentioning as well, the constructive development here but the talk that the administration is planning a powwow with vladimir putin on november 11th 9 days ahead of the president having a similar state down to the g20 summit with the chinese leader. two very, very closely scrutinize meet and greets if you will double be a lot more than that among some of the premier players on this planet interacting with the president of the united states. one again on shelving a deal and trying to find a new one and the chinese shelving a deal and trying to find anyone. we a new one. we're well off are those are the dow down 216 points. we had been done about 150, so i credit our panelists for that.

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neil: angela merkel has already said there is not going to be any german arms exported to saudi arabia until this killing is cleared out. she said it must be cleared out. as long as it's not there will

be no armed experts to saudi arabia. >> the drip, drip drip of facts have been extremely concerning to us. they've got to get to the bottom of it. there needs to be an independent investigation. neil: there might be an independent investigation into the saudi journalist, but it's not stopping the deals are the saudi's reporting today a $50 billion deal that encompasses oil, gas and infrastructure arrangements with 15 key players from all over the world. a third of them american firms. they have a vested interest in this and they don't want to lose this and they're not going to lose this. market watcher alan mauch made joining us. i'm not saying it will be business as usual, but if anyone were concerned about all the sudden freeze the sudden freezing them off, that not happening. >> you may have heard this phrase before, but follow the money. saudi arabia came up with a

statement saying they are going to actually pump a little bit more to take up for the iranians lack with the issue in a couple months. the direct quote was they want to provide a responsible role and so buy them pumping a little more received oil down with the $66 level. we dropped 76 all the way down to 66, june since october 3rd. this is the fourth time this year the oil prices have dropped more than 10%. every other time they rally back and make a new four-year high. neil: for the time being but benefiting energy stocks. we've already seen the auto sector under duress. maybe that's part energy, part probably more trade than anything else. and just higher interest rates. one after another seems to be taking out here and i'm wondering whether there wondering whether there is some follow through with that we should be watching for. >> it's very much impacted the last couple weeks because of the macro market stall.

i am liking this price action from today. this price action will be fleshed out with the october 11th was in the s&p and rallied talk about that. only down 1% on the day. this was one more shakeout and if you look at the vic's, he got up to about 24 today. the high we had two weeks ago was 29. you're seeing bullish divergence there. the dollar is down in interest rates continue to decline after two week highs. a lot of positives here and now we can into this overload of earnings and we're looking for a 19.5% growth rate for this quarter. i think this could be a bottom in play. neil: when you refer to the vix, you could change on a dime and always does. let me ask you about what this says about a market that used to ignore the bad news that sometimes stumble more often than not on the bad news. talking about earnings that are very strong and they are. but then we started looking in

the weeds whether its guidance from caterpillar, 3m, host of these others. and then you look at sales. we didn't pay nearly enough attention to revenues with the likes of ideas and others. it's like the market is fishing for reasons to take profit. when you make of that? >> definitely. you're always looking for issues in the marketplace to not be happy with iraq right now. that is just human nature, just psychology. the callback is healthy. we sold off 4% two weeks ago. we were positive last week and this week we've had to dip and now the rebound. it wouldn't be surprising to come all the way back to one change. doubtless than 1% after all this. the big news overnight was china selling off 2%. but guess what, china had a surge of up 5% so i gave back some of its gains as holidays. i think you're just having a nervousness en masse just natural for markets to come this

far. you know i'm all about price not politics, but to come out and say that timing and outcome of the election is a cause for concern come you can't have amnesia and ignore 2009-2016. money was made by everybody. neil: very good having you. alan, of course referring to larry kudlow is a great human being. to claim what's going on today and concerns with elections two weeks out. i think most good thinking, proper thinking, truthful people know it. a little more after this.

>> i think the stock market is worried. the congress will overturn these progrowth policies. i really believe that. i think that this so-called correction then i said before these things come and go.

that correction has to overcome the uncertainty of this election. neil: all right, that's bogus. we love and admire larry kudlow. this is built on trade concerns, built on the impact with steel, aluminum, already impacting the bottom line not only the automakers who telegraph this weeks ago, but the latest caterpillars and it works into their guidance which is a little more nervous. charlie gasparino and all of that. >> litters my friend. i went to his earth day party. love the guy. except on this narrow issue. bush is positive that. what would make the market here about democrats taking the house and republicans taking the senate. you can't reverse anything. the post and now republicans are like and pick up a seat in the senate. the democrats may pick up the

house. we don't know yet. and yet that's gridlocked and nothing like it done which is kind of what markets generally like. he fails on the most commonsense levels. neil: i think it's a part of a pattern. and i understand. they've been married to the market and may go up. even if it did brief trip down. neil: i mean, he's on a market guide now. he is a politician and a larry has not to spin a yarn. this sail on a real commonsense level. neil: two weeks ago the rather reserved. that's a very legitimate concern. what is your sense about what is happening today and what's driving and rattling folks. when you think? >> i don't hear the dems taking over stuff. republicans lost the house and the senate. neil: that would be beyond the consensus view.

>> may be, that he would do what obama did witches veto winning -- neil: in the of the numbers to back them? >> they could impeach them in the senate could convict them. you need two thirds in the senate. it's not just buy one. >> by the way -- not even sure they take the house. >> playback now. if republicans manage to keep the house in the senate -- >> i think the market will go up or then you've got a legitimate chance for another tax cut. we'll see. the last one is working now. neil: let me ask you real quick, the saudi thing, it's interesting that today they announced its $50 billion deal on infrastructure oil and gas with a lot of the players come and number twos and threes still there for this conference. >> as we reported, everybody -- neil: some of them have to sign those checks and they are big checks. i'm wondering whether that's

part of the administration thinking. be careful bowing out of everything with the saudi's no matter what we are finding on khashoggi's death. >> you know, it's a really tough spot if you're in this administration. you are the whole middle east power structure. you are now siding with the saudi's are there've a ton of cash as opposed to the iranians. they have a ton of cash, a ton of problems and here's sort of the intangible thing is how much do the turks know about how khashoggi was actually killed? that could really drive foreign policy. traded to the cia will be meeting with president erdogan and he'll reveal more things. would that change these deals? >> you'd have a movement in congress to do something

dramatic. listen, had been killed is not enough. if there's real hard evidence. neil: it's unmistakably tied. >> it kind of this already. >> this could fall apart. >> bares all causes in these things. you know, can these revelations i guess, the bigger issue i have, can they do enough to unsettled the royal family in the letters that you hate, what was that? >> he is 12 brothers, the crown prince. it's not as if he's going to be going to jail. >> the beauty replace it with, for he know? do we get michael or do we get credo? i don't know. neil: we don't know.

neil: a lot of a lot of people then wondering where the money is going right now. a lot has been going into on this. we are well off our lows of the day. >> republicans might win now. a lot of this got a pickup that could've gotten where the president is going to meet with vladimir putin on november 11th. they'll have a little chat before the big one at the g20 with the chinese leader xi jinping and the president. two big powwow speared a lot of scrutiny. world markets are always relieved when they hear leaders are coming together to talk than they are when they're not. that's what's happening. karl rove on all of that after this. top 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.

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neil: all right, the dow down about 250 points. this is sort of a cleansing process the markets could be going through.

my buddy gary kaltbaum, a frequent guest on the show is same market trying to watch out, but it's way too early. it's a good effort, video and if we have a decent reversal, and it sort of a big picture view of things. he says there are big picture that has issues here. too many are calling bottoms everyday. eventually they will be correct. the fundamental development today with plunging oil prices coming down. and even though when oil prices but stocks and interest rates going down. we will see in all that will see an all bad. former bush 43 deputy chief 43 deputy chief of staff, best-selling author carl rove on all of this. what do you make of weather gyrations in market like this affect voters? i tend to think that maybe to a

degree in a presidential not so sure in the midterm election up or down. what you think? >> there is an effect but it's more modest. half the people in america are not directly invested in the stock market even further 401(k). for them it is just background noise. even if you're invested in the market we tend to accept good news more than bad news and we tend to have a little bit longer horizon, look at other things like hideaway feel about my job, hideaway feel about my paycheck, drinking sales are good, a lot of other things the ups and downs of the market are going to be matched again and overshadowed in some regard. neil: this gets afield from what i want to talk about. the administration on this it has a week or two ago was the federal reserve's fault. today larry kudlow saying it's concerned about the mid-terms

are never a problem with trade policies, which seem to be coming out more and more in these earnings reports. caterpillar among them saying steel and aluminum in all these precious commodities that all of a sudden a tax now at these higher levels is impacting the bottom line. 3m said that, automakers have said that. some of the technology concerns have said that. what do you make of that? >> well, i do think there's legitimate concerns about slowing growth in china and about trade wars and tears. yesterday was at a meeting with oil and gas operators and several of them talk to me about difficulties they're having in the sealed a need for the infrastructure needed to produce and distribute and refine energy. some of the steel can be made in america. they have to get have to get at places like south korea or south africa and difficult for them to

do with these high tariffs. raising the cost of business making them less attractive. lengthening the process because even if it can be produced in america takes a long time to get an exemption and they have quotas so you may have fulfilled this year's quota and you have to wait until january to begin the project. it's just a nightmare. some of those things impeding the american economy. the idea that this is about the election be the ups and downs are attributable to specific things that the federal reserve raising interest rates are people's growing concerns about democrats taking control of the house is over rated. neil: now let's get a sense of the environment growing in here. the consensus seems to be republicans are going to lose the house. i'm not of that mindset which should make people run the conventional way it should run. they hang onto the house and pick up a couple seats in the

senate that would go against what markets are anticipating to say nothing of the consensus polling community. what are the thoughts on where we stand now two weeks out? >> i think you're right. republicans stand a chance because of the amount. since 1914 we began electing senators by popular vote rather than state legislators. never a map as good as this one is favorable to the party in control of the white house says this man. one out of every five times in the senate the party in power holds it own seeds. one of those one out of five times and republicans are likely to gain two seats, maybe three seats, could be for seats on a good day. neil: maybe some of the data you are sharing in the house alone the gap between the candidates in dirty two races with five points or fewer could swing

wildly. i'm wondering in the 94 experience where republicans want the house, 53 seats, where they anticipated going into the weekend before that. i know they were expected to do well, but not 53 seats while. >> i don't think so. same in 2010. however we did have something to play in both of those elections we will not have in this election. i used to teach political science. it's called surge in decline. when a president comes into office as bill clinton did in 92 and barack obama did in 2008, there is a surge. they bring in a wave of new members in the house who are in marginal seats and then they decline the next midterm. obama they gained a bunch come again for more in 2008 and got washed out to sea in the 2010 elections. same with bill clinton.

he had a surge in marginal seats in 1992 who got washed out in 1994. there is no surge in the trump 2016 election. republicans lose maybe three seats are six feet in the house. i can't remember exactly. they lose seats unlike the normal pattern. so there's no group of sword of marginal people they are in a freshman term there because the president was so popular in his initial election making it look out to see. neil: when you make of this announcement that the president vladimir putin plan to meet november 11th 98 before the president meets the xi jinping at the summit. those are two very important discussions to put it mildly. what you think of the timing? >> i think it's an interesting thing given the administration will withdraw from the intermediate nuclear missile

treaty because look, everybody admits for years the russian have been violating the terms of the treaty. we've been abiding by that much to our strategic disadvantage. to be interested to see vladimir putin will come armed with a bunch of threats and suggestions that we cannot win. president clinton's strong cards and he goes in with a deliberate plan to say we are doing a because you've taken advantage and violated terms of the agreements. don't place for pat the theaters that will do in response and follow through on it. trained to do think it administrations clear goal. this should prove that wrong. >> well, so far think about it. we have indicted a bunch of russians. we have sanctioned far more russians than ever individually sanctions. sanctions on russia held. we have demonstrated we are not in sync with them in korea.

not in sync with them in syria. we have taken that stance is to strengthen nato. we are positioning both asset and personnel in europe. we are providing legal aid to ukraine after the previous administration and is willing to give nonlethal aid so that americans would not be seen crossing the border in the ukraine to deliver meals ready to eat in uniforms. now we are providing legal assistance and delivered it to them. the president taking a tough line on russia. if i were putin i would be irritated if i thought he was in my pocket but it's more likely he is trying to figure out how can i manipulate trump, not how can i continue to move down the same course for going on. this administration has taken a tough stand in many respects. neil: how famous it was during the whole 2000 election and the recount and everything else and

where president bush where president bush has gone in the eyes of the americans. popular leaving office. the poll numbers have essentially reversed. twice as many people think highly as not seen since leaving office. i guess it proves that presidents can weather the storm once they leave, but it's a remarkable turnaround. what you make of that? >> i think a couple things. i used to be a little bit of a a hothead soy grits and newspaper editorial in "the new york times" and go hyperventilating about 6:30 in the morning. history will get it right and we'll both be dead. who cares. he's right, history will get it out in history as looking back at his time in office and coming to a different conclusion than we came to in the hot moments of 2007 and 2008. second of all, the way he's conducted himself after office he's demonstrated statesmanship, compassion. he's deeply involved every single day with our veterans are particularly wounded warriors

and his passionate about confronting aids in africa in continuing success there. and then he and moore bush have conducted themselves in an admiral way and call people to fail and revisit them in what he did in office and his policies and come away with a more positive view. neil: we know that behind the scenes he was very instrumental in getting a lot of senators to vote for his former top aide, brett kavanaugh. >> yeah. and as you say, and roger wicker mississippi, mike brought in indiana, kevin cramer north dakota, josh holly and missouri. dean heller in nevada. martha mcsally in arizona. he's been out there behind the scenes in a positive way, helping people that he believes to be good leaders for the future of the country. doing so marvelous things that got a fantastic program called presidential scholars for the

bush library can all reach a library, clayton library have an educational program sort of like a masters in public policy for people midcareer. i've had a chance to be with some of the scholars they've recruited from this program and they are spectacular rise in the young men and women in america who are so much capacity to do positive things for our country. again he's done a behind the scenes with not a lot of fanfare in doing a great job at it. neil: and. neil: immigrants. neil: and the good fan of presidential libraries. i've seen them many, many times. i love his library in the whole financial meltdown. he was very frank about what happened there. >> i hate to be really petty about it, but i thought last night when i heard barack obama say you've got remember where we begin on the road back to it i get credit for everything happening today. the legislation that got us out of the financial crisis as your member stabilize the banks and financial systems was passed in judah by george w. bush.

very controversial at the time. most of the money went out the door monday for barack obama raised his hand and took the oath of office. you'll see president bush saying i'm responsible for anything good happening after that. >> we dropped a hundred points. that started under the bush administration. carl, thank you very much. good catching up with you. >> you bet. neil: vidal -- down by 275 points. wrestling with market multiples that make it look a tad more affordable, but not a lot more affordable. also looking to lower interest rates, higher gold prices. you know the drill. doing what human beings do. trying to find a place to hide money. after this.

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into the s&p 500 we should point out charlie brady is reporting that two thirds of those issues are in bear market territory. down 20% or more from their highs. this at a time when most of the earnings we are getting are

still coming in better than expected. in fact, close to 79%, 89% already generous spirit that they are telegraphing like caterpillar talking about higher alumina metal prices come in the same thing that was hitting three and from the auto companies. higher interest rates, we are big concern. coming down a little bit. the financial issues are not benefiting proportionately. jerry leavy right now. or should it matter? >> from a technical, they are at the closing price and not their mark against whether the index or what you're looking at about 50 or 200 day period right now we are solidly below the 200 day moving average, which is when you talk about full bear market territory we are below that. that number is 27 points

exceeding the s&p. the good news is typically the market has what i call a grace period. so for instance if we stay down here for the next day or two and they jumped back above we are okay. that technical aspect you hinted on earlier with so many stocks with the low moving averages. remember, we are very algorithmic automated type of the market today. computer algorithms and they have these patterns will continue to push and believe it or not i think it's more algorithmic what we are seeing today been a big shift if that makes any sense. neil: now come i understand what you're saying. that's a notion gary kaltbaum had. we assign so much so quickly. >> that assorted dangerous.

so far about 100 top companies. sales growth on the revenue side. again come a very good number. we've got a big issue here, neil. i am expertly done global economic growth. on our side, things are looking great here. neil: i do want to jump in you, my friend. that heartbreak is coming. the dow was down close to 300 points again. more after this.

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neil: if you want to stay calm in a storm, talk to my next buddy, charles payne here. we're down about 281 points. he was offering perspective earlier in the day. i'm sure he will help with you that right now. hey, charles. charles: neil, thank you very much. there is a lot going on what you see from the headlines. this is "making money." the dow off the worst levels of the day. it was off 548 points. investors are grappling right now. there is a laundry list of concerns. the question is, what happens from here? more on markets coming up. former white house communications director anthony scaramucci will be in the studio to talk about his new book, "trump, the blue-collar president." council on economic advisors chair kevin hassett will join us from the white house. much more on "making money." we sta