now no confirmation from either the fbi or the atf agencies that these in fact are bombs. several investigators say some of the packages have no possibility of exploding because of the way in which they were made even if they were an explosive. that's it market rallies. cheryl: technology stocks sliding overnight after google amazon posted disappointing results. alphabet down more than 4%. lauren: that's weighing on futures in the united states. dow tumbling 223 points and nasdaq down 107. cheryl: today's losses following stock market.

dow shut out 400 points. in. lauren: in europe stocks opened largely lower especially in paris. cheryl: stocks in asia all in the red, south korean stocks down nearly 2%, technology bleeding over there. lauren: search post office facility in florida. fbn:am starts right now. cheryl: 5:01 a.m. in new york. good morning, i'm cheryl casone. lauren: favorite day of the week, happy friday, i'm l, did you see big earnings last night from technology? cheryl: we are talking about them. lauren: pretty disappointing earnings. cheryl: hillary vaun with more

on that. all about technology, hillary, good morning to you. >> it is, good morning, lauren and cheryl. tech stocks took tumble in afterhour trading after lukewarm results from alphabet and amazon. amazon stock trading 8% down after company fell short of wall street expectations for its third quarter. net sales rose 56.58. lauren: they warden about the holiday quarter potentially falling short and that got investors nervous. as google parent alphabet, how did they do? >> reported miezing expenses as well while concerns over regulatory scrutiny, shares trading down about 4% in premarket in response to this news. cheryl: all right, we will be talking more about the stocks too, this wasn't the only bad news that we got from google

yesterday, what else happened in. >> right now, they are admitting that they had a sexual harassment problem, sundar pichai sent out in memo that they fired 48 people over the past 2 years at a variety of management levels for sexual harassment including 13 workers in senior management. follows new york times report that the company report that says the company awarded android creator andy ruben 90 million-dollar exit package after accused of sexual misconduct from a fellow googler. cheryl: hillary vaughn out in los angeles, thank you. lauren: biggest economic report of the week, comes out later this morning, first estimate of gross domestic products, the economy respect today have grown 3.3%, slightly low the other 4.2% that we saw in second

quarter, of course, the white house has more optimistic forecast. they see gdp rising at 3 and a half, of course, we will have the report for you once it's released in 3 and a half hours from now. cheryl: with dow down in premarket that could change instantly before we open this morning, back to amazon and google's parent alphabet, both of the stocks lower in premarket right now amazon had disappointing guidance. that was big, revenue from alphabet missed streets what is the road ahead from the two behemoth? ian, david, good morning. guys, good morning. >> good morning. cheryl: ian, i want to start with you, prime membership, the web services, always a cash cow for amazon, there was weakness there and that seemed to be

taking folks by surprised last night. >> cheryl, the one thing you can't do is miss top line and even worse with amazon guide for lower estimate and revenue than the street was expecting here. profitable quarter, this speaks to larger issue, shift out of growth into valued stocks, can't mison the top line, same thing for google, can't miss on the top line as well. cheryl: there was weakness with whole foods, big acquisition for amazon, there's been weakness with the whole foods numbers and also the fact that they have been trying to trim shipping costs, they have been shipping head count and that still didn't help the company. >> i look at both of the two companies and seems like the entire market rally was led by the fang technology stocks and it's been frothy and ridiculous that at some point something need today correct. it's not big surprise.

they both had tremendous quarters. i appreciate that it didn't meet expectations and since that matters so much i would be doing the same thing they are doing and i would just try to keep expectations reasonable for holiday and maybe they will beat them. cheryl: this is amazon we are talking about, at one point trillion dollar market cap, we will continue to watch amazon. let's move over to stock on the screen and that's alphabet, parent company of google, the stock is down almost 5% on premarket, david, to google, first to you, the worry about regulations in the company are overhang for analysts and investors alike, is that going to happen in the u.s. or europe and they did address it last night? >> they are going to have to and for google this is clearly a company with target on its back and this is one of the most dangerous company on the planet, they touch everything in our lives, google mail, even the draft e-mail that you didn't -- that you didn't send out, chrome

tracks you on the internet and android devices track you everywhere you go, so speaks to larger issue in technology and i'm not sure where the loyalties lie, they're certainly not here in the united states, they even violated the own mandate by pulling out of china several years ago, now they are back in and they censorship seem today bother them at some point but now they seem unconcern. cheryl: still the concern, ian, for the future not just alphabet but for all technology companies in the face of mounting pressure to protect user privacy. >> that's for sure. one thing i want to touch upon is vast majority of advertising. amazon advertising business will skyrocket, people aren't even looking elsewhere to go find

products, they have a huge room to grow. cheryl: amazon hitting it on advertising and doing well, alphabet and google having a problem. my, have times changed. [laughter] cheryl: we will watch both stocks, david, ian, thank you very much. >> thank you. lauren: intense manhunt underway nationwide after 10 bombs were sent to prominent democrats as well as cnn, investigators have searched the mail facility in south florida last night, several of the packages went through that facility. cheryl: yeah, laura blanchard has more. >> the fbi looking at packages they intercepted. now they are getting a little bit of help on posting markings on the envelopes as authorities are calling florida a region of interest. >> this is the fbi's highest priority, they're already tracking down leads.

>> sources are not saying if they believe the suspect or suspects are in florida. fbi says new york and maryland are part of the search. some packages made its way to postal system. >> to identify and aprehenned the individual and individuals responsible for these acts. >> federal investigators continue their work, politicians are now blaming each other for heated political climate which some led to target to go high-profile democrats. the president pointing the finger at the, quote, mainstream media while democrats including those who were sent the packages faulting president trump's rhetoric. >> he in his own way does do a lot to promote violence, now they are trying to turn it on us. >> it's unfortunate. >> a claim the white house is pushing back on. >> look, there's a big

difference between comments made and actions taken, the president is certainly not responsible for sends suspicious packages. >> authorities aren't sure if the person or group behind the potentially explosive device meant to hurt or kill or if the pipe bombs were meant to simply spark fear less than 2 weeks from the midterms, in washington lauren blanchard fox news. cheryl: more on the story later on in the show. first to this, trump administration is planning to send 800 active duty troops to the southern border as central american migrant caravan approaches the u.s., defense secretary jim mattis expected to sign the order to bolster national guard troops already there. cheryl: vice president mike pence issuing warning. >> to those in the caravan, turn around, we are not going to allow you to enter our country illegally.

[cheers and applause] lauren: thousands of people mostly from honduras are walking as you can see through méxico to reach the united states, they are about 1,000 miles from the u.s. border, we will have more on this and how angry this is making voters on both sides. cheryl: yeah, well, now to new developments in the investigation into the death of washington post columnist jamal khashoggi. the saudi changing story again, turkish evidence show that is the murder was planned contradicting claim that rogue officials killed jamal khashoggi by mistake during fistfight. lauren: the u.s. welcomes saudi arabia's' to leave jamal khashoggi's son to leave and come to the united states. cheryl: trump administration is reportedly refusing trade talks with china, not to hold negotiations with beijing until it comes to proposal to address

issues including forced technology transfers, talks on hold since september after announcing tariffs worth of billions in chinese goods and scheduled meeting between president trump and xi jinping that meeting g20 summit held in argentina, that's going to be interesting. lauren: we will see if it happens. well, this is happening, yesterday's big rally didn't last long. take a look right now at futures down sharply this morning, dow is down 1%, nasdaq is down 1.6% and coming up, president trump taking aim at soaring drug prices. >> for decades other countries have rigged the system so that american patients are charged much more, we are taking aim at the global freeloading. lauren: what the sweeping changes of medicare could mean to you and your pocketbook. they just can't seem to stay out of the spotlight, another clinton, not bill or hillary,

could be headed to washington and washington soon, you're watching fbn:am. - [narrator] at athene, we think it's time for the financial world to stop acting the same old way. 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.

cheryl: welcome back, i want to get you caught up on what's happening now. again, volatility continue, dow down 38 in premarket, s&p down 30 and tech heavy nasdaq is

down, look at that, 1 and a half percent. nasdaq under pressure, taking a look at companies to track, alphabet, stock under pressure, amazon, concerns about holiday quarter, that stock is down almost 9% right now in the premarket. well, search and rescue crews are looking for a private plane that's gone missing off the coast of south carolina, plane was in ruth to the bahamas whence officials say it alerted of in-flight emergency and disappearance from radar shortly after, the plane registered to a company in delaware. well, president trump taking action against drug high prices two weeks before the midterm election, president announcing a 5-year plan to lower medicare drugs by matching them to the prices in other countries, if this is approved the move this could save taxpayers billions of dollars, there could soon be a third clinton on the political

scene. their daughter chelsea clinton says that she would be open to the idea of running for office in the future during recent interview, clinton doesn't have plans to run right now but something that's she's been thinking about, lauren. lauren: i'm not surprised. oracle ceo mark hurd and larry ellison discussing with maria bartiromo, discussing customer base to cloud-computing products. >> in our application's business we have most of our customers looking at cloud. about 10% of our base move core applications to the cloud, but about another 40% with some product in the cloud that they are using on premise product but our entire base will move to the cloud over the next several years, all of it. lauren: you can watch maria's exclusive interview with both mark hurd and larry ellison this morning at mornings with maria, 6:30 a.m. eastern time.

cheryl: great to have ellison, he doesn't give many interviews. let's take a look at futures, we do have more pressure on the markets, it's been roller coaster week, we are down to 40 in premarket, s&p 30 and a half, nasdaq tech heavy nasdaq, down 116 points, and also this story is coming up, as the migrant caravan moves north and the midterms inch closer the blame game is heating up. >> the democrat party is openly encouraging caravan after caravan of illegal alliance, right now is the sole result of democrat laws. cheryl: will trump's message resinate with voters to keep the house, you're watching fbn:am?

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lauren: caravan from central america heading to the u.s. has become heated political issue and image as we countdown to midterms, president trump has seized on it all week going as far as blaming the caravan on democrats. >> as we speak the democrat party is openly encouraging caravan after caravan of illegal aliens to violate our laws and break into our country. don't worry about it, folks, you have nothing to worry about. lauren: is the message resinating with voters? >> great message for the president at this point in time. the reason is the biggest ignored aspect of the immigration debate is americans are split between legal and

illegal immigration. they love legal immigration, they think it's good for our country, when people cross the border without following the rules, 79% of americans say it's bad for the country. this issue donald trump frame it the democrats aren't serious about stopping illegal entry into this country and the law aspect of it, nation of immigrants but also nation of laws carries a lot oh weight. lauren: if you look at latest wall street journal nbc poll we find that immigration is number 5 on the list of issues that americans care about. >> right. lauren: while the president is framing this as a law and order message, do americans really care about this when push comes to shove when they have to show up november 6th? >> biggest issue is economy, in arizona immigration is significant but ties into other things, people are concerned with national security, voters think there's national security threat to this but when we are talking about voters, 85% of

them have decided how long they are going to vote, voters on the margin who can't decide if they will show up and vote and if so who they will vote for, voters are looking for sides onto which side, the voters are on the president's side on this issue. lauren: they are all rapists, they are all murderers? >> is there, of course, there is, it's tapping into concerns that's already there are. it's not that the president is creating climate of fear, people have had these concerns and they are concerned about people coming into the country criminal, live off our welfare system, national security threat and they are not saying that most of them are, if you have 7,000 people coming into the border what if 2 or 3 are national security threat. lauren: images of 800 troops being sent to the border, that's what the president wants to do, that shows you strong on immigration, strong on law and order and fulfilling the campaign promise.

how does that resinate with democrats that want to keep families together and welcome you to our shores? >> first off, two-thirds of people want troops sent to the border including two-thirds of those who are uncommitted right now by congressional vote, so it's an issue let's the president play to its strength. what happens when troops and migrants meet, well, that's a different question, you know, there could be a problem depending on how those incidents play out. right now a message the president is connecting on. lauren: caravan crisis helps republicans in key senate races particularly texas, nevada and arizona. what about things changing in the house? >> the house is 435 individual races, when we look at it nationally on generic ballot democrats have 8 point lead, if they win the popular vote the democrats get control of the house. if the republican turnout increases a little bit and the

republicans can get lead to 6 points we are in toss-up territory. if democrats increase margin, we will look at blowout, the issue about turnout are the most important issues of the day. lauren: thank you for coming in friday, major issue for voters out there. thank you. cheryl: we have major issues for investors, folks, taking a look at what's happening in futures market, poised to severe pressure today and the big story is the nasdaq right now, major average right now is almost now, pushing at lower 2.41% in nasdaq premarket. we are threatening to get back a lot of what we had yesterday, this has been a volatile month, most volatile october in 118 years and there are predictions the markets could calm down after elections, guys, good morning. >> good morning. >> good morning. cheryl: gary, i want to start with the news of the morning, what we are seeing, major

selloff on market, nasdaq and as we are seeing again this week in particular has been a roller coaster for investors and friday is not disappointing in the excitement? >> exactly, we are getting into real for lack of a better phrase throw-up territory. my first thought when i woke up, sell everything and that's usually a time at least for me and most people to start buying, you know, i noticed that amazon in particular looked to be probably from the recent high, which was just a few weeks ago down about 20%, that feels so scary but when you look march and april, what was the figure, down 20%. i'm not saying to go all in but i'm sure a buyer rather than sell. lauren: albert, is this a time to buy stock, what does it take for someone to come in and make

the bet that stocks got cheaper and maybe this is the bomb to have of the market? >> i don't think any investor should be trying to time the bottom of the quarter, that's a pararlous task. and is this the bottom, i don't think anybody can tell that, you can get good values. lauren: i'm only saying that because typically stocks rally after election, if we will go up in november, maybe this could be near the bottom, this could coue bottom. that was my point. cheryl: gary, as we are seeing the concern about regulation on a name like google or facebook or twitter, whether it's the eu or the united states and whether we are seeing worries about amazon, back away from the web services business which has been the big pressure here, we have been so dependent on fang stocks

this year for market rally, it's been the bread and butter of where we have made our cash, that seems to be in jeopardy for multiple reasons, what's going on, gary? >> well, look, i think that we have worries across the board, if it's not regulations it's certainly geopolitical with saudi arabia, if it's not that, it's oil prices going up or down, if it's not that it's interest rates, i think it's kind of like death by a thousand cut ts right -- cuts by a thousand and you have amazon and google, they have revenue up 30%, amazon earnings went from 314 a share to 574, that's phenomenal, the real question is despite everything that you and i just talked about, regulation,

interest rates going on, do you think amazon, google will be worth more 2 or 3 years from now and you have to say almost yes. amazon across the board, for example, is growing by leaps and bounds unless you think you have 2008 economic collapse across the board, again i like the companies despite headwinds that we just mentioned. lauren: i think what gary is saying, albert, perspective has changed, pessimistic perspective even though the numbers look pretty decent at least bottom line is concern and i was looking at cash on hand, $174 billion, this is a strong company. >> i agree, gary's perspectsieve spot on, that is you can look to see what's going to happen and try to predict what will happen over the next 30 days or over next 60 days, the longer-term perspective will serve investors better and i agree with gary's

outlook, 2 years from now, these companies will be valued more highly than they are today despite concerns about regulation. cheryl: we talked about this in the beginning of the segment, gary, issue of midterm elections, two schools of thought, one that we've had incredible market, incredible economy under republican control, whether white house or the senate or the house but the the house does go and we get the blue wave come next week, that that could actually be problem for the market, normally we like gridlock but analysts are saying gridlock could be bad for market. >> well, you know, i agree that the economy -- at least the stock market and the economy has been very good under the red wave that we've had. if it changes a little bit, i'm not really no concern for this reason, historically although everyone is throwing their hands up, the blue wave, historically mixed congress with a republican

president does pretty darn well, you know, i think that, you know, congress, the whole, you know, executive branch and congress is like this big ocean cruiser, it takes so long to move that even a change in the house if there is, becomes democratic, i think little effect on the economy. lauren: investors worry if there's change all of the probusiness deregulation policies of the white house disappears and gets stall and we is that true in the month of october, albert, we will bring up the numbers in how the stock market has performed in the terrible, terrible volatile month. s&p down 7% and the nasdaq is down 9% in october, we have 3 trading days left, how do you feel about it? >> well w i think first of all, we've become wimps in dealing with market volatility, we have

been accustom to markets, it's more like normal, we overreact to that. cheryl: go ahead, sorry. >> no, you know, the -- i think that investors are going to have to acclimate themselves to this. there are a number of uncertainties will play out. if democrats do take control of the house, i do expect a negative market reaction to that but i don't think that will persist because i don't think the change in the house control will have a meaningful effect on the economy. cheryl: i want to bring in david nelson, he's back with us, he joined us earlier on what was happening with technology, david, as we continue to watch the big selloff and really is the nasdaq that's taking the biggest hit right now, we are down 2 and a 3 quarter percent on 190 david, s&p down 1 and a half percent, dow 1.2%, even if the discussion 30 minutes ago, i

don't think either of us could have predicted that you would see this escalation of selling in the future's market. >> yeah, it's taking steam right now and google and amazon are part of the problem, investors have been hiding in big cap. massive value and in the last decade growth has outperformed value in 100%. it's powerful force. let not forget the elephant in the room is still interest rates and the fed because as interest rates go up more money gets sucked out of the market, pension plans, insurance companies decide to lower equity and that's systematic selling, by the way 9%, 10% isn't normal. not in one month. lauren: david, chairman wrote in

editorial today, he urges the fed to pause their interest rate increases because, quote, prematurely tapping the brakes could restrain wage growth and keep many from participating in the economic recovery and we get a measure of the economic recovery with the first read on third quarter gdp in 3 hours from now, david, do you agree with him? >> he's absolutely correct. they should pause and my hope is that they take pause -- cheryl: we've lost, i think -- we are having a hard time hearing you. >> i'm sorry. cheryl: let's bring back albert. lauren brought the threat of interest hikes, criticism of

jarome powell, this is real market concerns, let's be frank, but also the issue of china is a big market concern and i'm wonder if that's on your radar as you talk about possible headwinds you mentioned a moment ago the fact that we are not willing to go back to the table with china that we reported earlier in the hour, you the meeting coming up many argentina between trump and xi jinping, they may have nothing to discuss as far as tariffs. is that one of your headwinds you mentioned? >> it is definitely. take a look back, 6, 8 months ago at market perspective at the time and you take a look at uncertainties that are plaguing the market today, china has to be near the top of that level near uncertainty. affecting supply chain, the market was looking forward to some reasonable and fairly timely resolution of trade conflicts with china, i think we have seen that that's going to be much more prolonged process

and may not get to the sort of solution that we would like to have sooner rather than later. lauren: yeah, now reportedly we are looking for beijing, gary, to give us some written proof of what they proposed. do you think china should play ball here knowing that the trade spat is hurting them more than it's hurting us but when push comes to shove on january 2019 when tariffs goes 25%, every company and every consumer is going to feel that, gary? >> well, i will answer your first question, should china play ball, yeah, probably, look at their economy and market, i don't know if it's directly related to tariffs. i think it was slipping before then, should they play ball, yeah, it's in their interest but you have to remember despite the headlines combined the two

economies are $30 trillion, even if every tariff is imposed, even if every tariff is collected which is a long shot, even if no country works around their tariffs which they will by shipping to another country and then importing the goods, the total effect is minuscule. everyone is saying oh, my god these tariffs, just in this country .02% of our economy. i think everybody is looking at headlines and saying, oh, my gosh, the sky is falling, the total effect right now is a lot anecdotal, again, maybe i'm poliana, i don't see the big effect. cheryl: i don't know albert, if you're a south korean component maker you're saying, i've got big issues thanks to the tariffs and we have seen the chinese markets under continuous pressure whether it's south korea or china's stock markets which would tell me they've got to come to the negotiating table but yet they haven't. so i think that we are just

starting to see companies in the fourth quarter in 2019, albert, tell us it's coming, we are going to have problems, it's coming? >> i see two things, i disagree with gary, i think the numbers are correct on absolute number. again, the effect is on the margin not necessarily in total. i don't think that the effect will be -- will be a large scale, the effect of the tariffs but i think they are going to be larger than just looking at the -- at the 02% number there. the other thing regarding china here, maybe in their economic interest but i think what's more important for the chinese and particularly for chinese leadership is the appearance of political strength and political leadership, they do not want to be seen as being bullied by the united states or the president and i think that is going to dominate their concerns more so than the economic output of that. this is a state-controlled economy, of course, largely, and i think their expectation is that they will find a way around this if they need to rather than

kowtow if you will to american interest. lauren: gary, bringing us back home once again, yesterday we had nice volume particularly at the close, we had a big rally yesterday, is that reassuring to you that there is still that bullish sentiment out there but now we have two major stocks who missed on revenue, amazon as well as alphabet and it's really just that that's taking the market and in particular the nasdaq down 2 and a half percent this morning or something else at play today? >> no, that's what it feels like to me. >> oddly enough the stocks are down and totally unaffected by tariffs, leave that aside. i think everyone is rattled that the two mainstays i think as david said where people like to hide, you know, google and am done, -- amazon, oh, my gosh, they are certainly going to be

worth more. right now the market is short-term oriented, pile on the things that we talked about, it might be a plus day, one of those days it sinks all the way down but at the end of the day we are flat. cheryl: let's update viewers. if you are joining us, we continue to watch premarket selloff that's escalated over the last 35 minutes or so in particular with the nasdaq, tech-heavy nasdaq, that's where we are seeing the most pressure. down 2 and a half percent in premarket, 171 points, s&p is down more than 1 and a quarter percent, dow is down in premarket right now. if you are just joining, google, alphabet of parent google, trouble there, we heard from amazon and there were misses for both of these companies and concerns about where they are going to be going for fourth

quarter. david nelson is back, i understand we have you on a more secure line, david, thanks for sticking to us on breaking news. amazon, i think this is so key, for them to warn about the holiday quarter, that's red flags, i mean, the compluid-computing business is one thing, david, but when you have a company like amazon which is the first company to hit a trillion dollar for the second, excuse me, that's something where people start to get really fearful on a day like today. >> speaks to slowing growth. most business measures were pretty good even margins were pretty good. i think investors will likely pour back into -- pretty severe at this point. you've had a very dramatic selloff not just here but around the world. we were really the last domino to fall and if you think overseas the merging markets,

developing market -- if they are not doing well -- [inaudible] lauren: gary, amazon is also paying -- and we can't forget this, workers minimum wage of $15 an hour that goes in effect in 3 days, that could be one of the reasons, yeah, we will shop with fingertips on amazon to get christmas gifts in time but they have more expenses coming out. >> yeah, definitely, interestingly that they decide today raise these, i wonder if that was a flush that they could do, that was on their own, no forcing there, i wonder if it was a tight job market, they wanted the pr, it's, you know, it's very difficult to say i'm sure they are not going to go back on it, but, you know, on the other hand you wonder how much is it going to affect bottom line. i think it's even the 15-dollar raise, it wasn't like they were paying $5 an hour before, again, i think that's kind of headline,

something to hide behind, i'm not sure it's going to affect the multibillion dollar company. cheryl: albert, to that point on amazon, they did cut head count and cut shipping costs and amazon, again, is a company that we looked to, the acquisitions have been rough for them. they made the whole foods acquisition and they are having growth pain and the company, the stock, we are looking at year to date on amazon, it looks like mount everest on my screen right now. a company that's gone higher and higher and all of the fang stocks in general, all of the fang stocks which are all down in premarket, it has been all about, thanks, guys, it's been about technology this year, it's been about facebook. lauren: go ahead. >> i want to pushback a little bit on that if i may because i think we take a look at the earnings, how the earnings have come in so far this third

quarter, we have half of s&p 500 reported so far. 83% of the companies have reported earning surprises, surprises have been over 6%. we've got year over year earnings of over 23% on half of -- on those half companies that have reported so far, so definitely, you know, the fang stocks are grabbing the headlines, there's a lot of money there, you know, it's what you see just walking down the street. everybody has phone -- but it's not the whole economy and it's not the entire stock market. lauren: they've helped the entire stock market since 2014, the fang stocks have gained 37% per year on average since 2014 while netflix is still up in a major way and many other names are up on the year, you're taking away almost that promised boost for stocks and if you add

in all headwinds whether it's geopolitics or trade, this is the reason with midterms being a few days away for investors ta take money off the table, and they are today, gary. >> yeah, well, as you said, the market goes up after the election. is the timing of the public wrong, you know, i guess today will be indicative certainly looks like the nasdaq is going to open just ugly. cheryl: it really is. >> i think today the end of the day print will be very telling. cheryl: you need to stay with fox business today, i want to bring back david nelson, this isn't just a u.s.-based story anymore. as we look at fang stocks that we follow, this is a global story, we have seen incredible volatile week for asia, volatile week for europe and they've had their own issues, david, if you look at whether it's the tariff fight with china, whether it's these -- whether the component makers all of the suppliers, the

chinese suppliers that supply apple and semiconductors and chips all of that is a problem and if you look at -- i would like to pull up europe and asia as well, markets and indexes, the global weakness story is my point here, the u.s. market can take global market so far and still a lot of concern about global markets and pressure. >> i guess in the end this is probably a downturn in technology, maybe some inventory apple leads to other companies as well, but i think you're hitting on an important point, you know, we dent live in a vacuum, it's not just the united states as strong as our economy is, these are trading partners and i would agree with gary, it's not just about the trade fight and trade tariffs because it is 30 trillion-dollar combined economy, china and the u.s., there are other issues going on here and i mentioned one of them earlier as interest rates go higher it'll continue

to subbing money out of this market. lauren: let's bring in peter in london as we talk about big picture and all the issues we have been talking about, peter, i remember it used to be, when china sneezed the u.s. got a cold and vice versa and very much what we are seeing play out particularly in the month of october is that when we do bad -- when we have a lower close asia is lower, so with this trade war upon us, what is it looking like where you are? >> well, in a sense, you know, you can say we are on the sidelines looking at the downward spiral between u.s. and asia, it's not quite like that. obviously, you know, the european markets are heavily exposed to both the u.s. and asia and, of course, problems in the u.s. too, indeed, tends to hit the european markets too. as being mentioned we have our own difficulties particularly with regard to italy and the

future pass of the ecb, but, you know, all told i think global equities generally are in need of correction frankly they are heavily overvalued and if you look at the united states market which has been the driver of what's going on in europe, a lot of air coming out of the blue hopefully for the better, the question is where was the bottom, hopefully not too far below where we are now but i wouldn't bet at it at the moment. cheryl: leave it to the united states market help push europe and asia lower which is what we have seen time and time again, but i want to ask you about regulatory environment, peter, i realize that you're not a true stock analyst, if you look at what's happening and europeans are going to clamp down lawsuits whether regulations against digital companies that have big businesses in europe, whether it's your facebook or even your alphabet, the parent of google, do you think that story -- is that still a hot story i guess

in europe and are you hearing rhetoric from lawmakers in particularly out of the eu that there needs to be more done to clamp down on technology and privacy? >> i think the eu is hot on privacy issues for sure. regulators whether it be in u.s. or this side of atlantic are concerned to ensure that the kind of environment that we saw prior to 2008 is not repeated. in some sense, it's a regulate backlash, yes, the eu has areas of interest with regard to privacy, the legislation introduced earlier this year something which is giving a lot of headacheses. in time we will learn to deal with it just as markets learn to deal with regulation. lauren: one more for you, peter, is this panic attack or bear markets for u.s. equities? >> good question, i think it's at the moment it's not a panic,

but it has a potential to be wrong, if, you know, this vicious downward spiral continues, we are not at the stage yet where investors are throwing in the towel. the economy does remain fairly solid, sounds to me or feels to me like a sort typical autumn correction for which we have seen over last couple of decades. cheryl: to lauren point i want to show what's going on in europe, you are seeing escalation in european markets, they are not just taking our lead but also pressure on the markets, peter, i want to bring in back if we can albert because we have been talking a little bit about the global headwinds and that's a discussion we have been having with peter, albert, the imf talked about this 2 or 3 weeks ago, that they are concerned of global economies, we want to remind viewers we want to get first read on third quarter gdp, that could be market-mover and that could

change the story, it's all about the economies of scale, the u.s. is the biggest. >> well, gdp, of course, that's history. you know, we will look to see those numbers to see dynamic that is have come into play particularly with net exports, we had a big print there for the second quarter expectation is that net exports would be drag for third quarter. we are looking at 3, 3.3% for a real growth in the third quarter, the question will be, though, what sort of trends does that show going forward. the u.s. economy is in good position consumers are confident, they're able to spend their ability to service debt, best it's been in a generation, we don't see a reason for the u.s. economy to slow down here. lauren: paris and frankfurt is down and nasdaq down 2%, we

bring in ian, ian is this amazon, alphabet story, if you're in the sector you'll get killed today or is the selloff something different in big tech names, ian? >> absolutely, the tech led the whole market rally so no surprise when the giants have stumbles that it's going to take the market wit. they are totally the leaders on either side. cheryl: ian, we talked about this briefly at the top of the show, i'm glad that you came back, our reporter in la was talking about the sexual harassment allegations that were revealed in alphabet, parent of google and leads to broader story of washington and silicon valley and silicon valley will become more under the thumb of washington, we know about the eu problems, we talked to peter about that, what about the u.s. or is that a worry for you in general as you get negative

salacious headlines from a company like alphabet which was surprise to investors on the call? >> absolutely. technology moves at a pace that no bureaucracy can keep up with. at some point they get act together, let us take peek under the hood. i don't think that's necessarily bad for their business. on the sexual harassment side, that's just good business, you can't -- that can't condone that at all. lauren: ian, would this be bad for business, something that maria bartiromo spoke with oracle executive, i agree with jeff bezos, when it comes to providing services and doing business with the u.s. department of defense, that's what these tech giants need to do, they need to aid the united states and our security over appeasing the more liberal employees at those companies, what's your take on the situation? >> all of our information goes through these companies, it's not ridiculous to say that you

have incredible environment to be entrepreneurs in this country and at some point you need to help and be somewhat of a u.s.-base company or else everyone else is in the global market share, yeah, i think it would be helpful. they develop technology usually much faster than government and it would only make sense that they would be in some fashion helping the people they serve. cheryl: the people themselves have been under fire, we are looking at fang stocks in premarket, they are all severely down, facebook down is 4%, amazon is now down 10% u alphabet parent google 5 and 3 quarter percent. the bigger story here the executives, you had the recent no confidence vote basically against mark zuckerberg at facebook, didn't go anywhere, i mean, these are the types of shareholder activist actions that we are really starting to see when it comes to technology companies in particular facebook taking the biggest hit, worries about twitter and leadership at twitter considering their problems, i mean, when the faces

of these companies themselves come under fire and that becomes national story, that is bad for business. >> yes, i guess i'm focusing on the long-term actual business of the businesses, nothing short-term, i think that everyone needs some kind of check and balance as we might see what happens in midterm even with our president, i think a fair system of checks and balances helps make the companies healthier in the long run, the fact that there's disproportionate amount of employees with liberal bias, that's just the nature of where these people came from and how they were educated and their beliefs and it's not inappropriate for the government to check and make sure that we try to create these platforms and keep them as neutral as possible, so information that we receive and go check and transact is fair as possible. lauren: gary, the santa claus rally as we get in holiday spirit, it's possible this year after having the most volatile october in 118 years and with the midterm elections upon us and potential change in congress?

>> i really do, lauren, here is the reason why, i think that we've thrown up all of these little as i said before, you know death by a thousand cuts and we've magnified them so we see -- i think cheryl said amazon down 10%, so 10% down, we magnified them so that you have a stock, so that would be almost 25% down already from the high and amazon i'm talking about. everything has been put up front. there's absolutely no good news that could possibly happen out there, any shred of good news with china or the fed saying we are going to hold off on raising rates as kind of david implied, any little bit of good news and i think you could see the market soar right back up. cheryl: hey, i don't know if we have david nelson, david, that could be the good news, gdp, albert says history, but gdp could change sentiment, you

know, when you see selloffs like this, it really is panic upon panic, hit the button, if everybody is going to sell, i'm getting out of my book today, i will come back on monday and reevaluate and that's trader's perspective, gdp can turn that around? >> it could, markets don't bottom on -- we will get through this. we've been through this before and if i panic and went to 100% cash every time this happen -- lauren: strong gdp read 3.3% maybe more on top of what we have seen could be the strongest back to back quarters since 2014 for u.s. growth and that supports the narrative, albert, that the u.s. is doing great. >> absolutely, to cheryl's point, it is history.

i will grant you that but i do think it has the ability to move market sentiment and to the extent it focuses, i think there's room for santa claus rally. cheryl: we want to update viewers that are watching in fbn:am as we get ready to turn it over to mornings with maria, we are seeing broad selloff this morning, on the back of company like alphabet and amazon that came in with disappointing numbers, you had misses on both companies, regulatory pressures, worries about the holidays, worries about regulation, all of that, this is what investors are seeing, they are starting to hit sell buttons, all of the fang stocks -- lauren: are down. so as money rotates out of technology this morning, we are going to look to see where it's going, we, albert, peter, gary and ian for sticking with us as we are following major selloff

of 2 and a half percent. the month of october, this could be the worst one for the nasdaq in a decade. cheryl: nasdaq as well but also to your point of october, october is the most volatile month for stock trading in 118 years. we talk -- we don't want to bore you with the volatility index but it is all about fear gauge and fear with investors, as we send it over to maria, maria has gotten back from silicon valley, big interviews that she had this week and we are watching technology selloff this morning, maria. maria: yes, indeed, the earnings confirming what a lot of people were worried about that we are seeing slowdown and expectations and we will see you in a little while, thank you so much. good morning, happy friday, thanks for joining us, i'm more- maria bartiromo, top stories 6:00 a.m. on the button, markets in selloff mode again this morning. dow joan industrials expected