herera report with sue and bill griffeth. stock slump intensifies, thd dow&p wipe out the gains for the year as the stock mket route deepens. >> tech tumbles, the hottest sector this year is now a in deep freeze with the nasdaq entering correction territory. investor whiplash. what's it going to take to calm the markets? it's a key question we try to find the answer to. those stories and much more tonight on nightlyusiness report for this wednesday, october the 24th. um-hum. and good evening, everyone. welcome. stocks were punished today. a late day selloff intensified sending the dow down 60 oh points process. as we mentioned both the blue chip average and s&p 500 are now negati for the year.

tech stocks hit the hardest. the nasdaq is now 1 below its most recent high putting its squarely in correction territory. the index is having the worst month sincef november 2008. here is is a look at today's damage. the dow tanked 608 points to 24583. the nasdaq fell 4%, a loss of 329 points. and the s&p 500 was down 84. mike santelli with the new york stock exchang to try and explain the selloff. good evening, mike. what a day. >> it sure was, sue. you know it's amazing. over the course of the month it's been an accumulation of factors that became very acute in the last couple of days specically around big compa earnings. i think investors have been sensitive to the possibility ngthat ear growth is slowing into next year and getting some ial ence from global indus companies that maybe that's happening and at the same time i think there is a little bit of wariness the federal reserve will continue raising rates at a

paceht that m feel uncomfortable given the potential for slowing. to me that came together with the acceleration of downside momentum today. >> and that downside momentum, ke, has been occurring as we re-test recent lows. we blew through yesterday's low today and that'he when selling took off late in the afternoon, right. >> absolute willy, bill. it was basically technically driven in that sense. a lot of investors trars ying okay if we manage to hold around yesterday's lows which were very much in the region of the october 11th w lows whi the low from earlier this month, then perhaps this is just a more routine pullback and we can bet on a fourth quarter recovery from here. it's obvious we stretched to the downside. and not too far above the lows r the indexes from early this year, after the january and february correction. >> all ght, mike santelli, thank you so much. as we mentioned technology stocks were once the driving force behin this market rally.

they have been hit hardest this month. the tech heavy nasq i now down more than 11% just since october 1st. d now won you know the tech jants are starting to report f rnings. first oute gate, microsoft, which investors are hoping will provide some when trading begins tomorrow. because tonight the company reported better than expectedgs earnf shh 1.14 a share when the market was expted 9 cents. revenue in the quarter rose to $29 billion. t an market liedtka the results. in sent the stock higher initial after hours trading tonight. >> and tomorrow the focus on techill intensify when alf bet, intel and amazon all report their results. josh lipton gives a preview of what's on >>deck. the information technology sector including apple, microft and sys is down hard from the recent high. strategists say investors tend to sell whated has perfo best

during sharp selloffs and that's certainly true of te which was among the best performing sectors before this rece pullback. now attention turns to the flood of big tech companies about to report their latest earnings tomorrow microsoft's cloud rivals amazon and alphabet report. their cloudnits bringing ever bigger chunks of revenue and the competition spheres. the cloud market i estimated to surge 120% to $175 billion. also tomorrow, investors will hear from chip giant intel. it's down hard so far this month though not as badly as the broader chip sector on track for the worst month since november 2008. some analysts sayed there could be pressure ahead for big names like fang, facebook, amazon, netflix and google. >> we don't know what the next year holds. we do know things will slow.

you can see that roamazon'sh going from mid-30% growth down to low 20s. i think there is a lot of concern around large cap cap tech pushing thenvestment stings to look at names outside of fang. >> on the other hand, what if bag beg tech knocks it out of the park this week a beats the forecast for this quarter and next? perhaps that could win back tece ors at least in the near term. for nightly business report, josh lipton, san francisco. what to make of this sec tech selloff where does the important sector go from here in andy hair grievous is the research analyst at key bank thanks for j tning us. >>nks for having me. >> what's your version of why we see the selloff in the market leader right now. >> i think you have a combination of factors, right you have a iot of compani this space that have significant consumer exposurehe is a view sew sort of global consumer may be rolling over. you have a lot of companies highly valued and you have a lot

of china exposure variation varying degrees you get what we see a l of downside. >> you know, i was also hearing a number of analysts cite the worry about tariffs and the trade war and t all oft factoring in. just as key fundamental reasonst for them take some money out of tech at this point. >> yeah, mean absolutely right to the extent that you have any kind of hardwaresur cr exposure that's either a big inmarket or big input. on both sides what yous see higher prices. sod that usually drives lower volume. ou are going to have issues throughout any company that's trying to sell something physical. >> are there particular areas of technology that you think are st vulnerable, whether hardware, software, social media, whatever happens what do you think? >> yeah, i mean you have to look at everything in the context of valuation, right. i think what we see a little bit is a risk off mentality in which case you want to lookbi a littl more at companies with a little bit of downside

protecon as opposed to to what's my upside opportunity. it "fast money" right now the names we like are google and facebook in part because the valuation does provide some support. >> are youorried about regulation? i mean there is a lot of talk about that on capitol hil as it goes to the social media companies and the googles of the world. >> yeah. yeah. i'm latching just becau>> yes. wondered why you were latching. >> any time politicians get involved i get worried. i think at least with google and facebookn particular, it's been such a prominent issue already. we have priced in a lot of that risk. and for them to solve the issues that they are trying to solve i going to take many, many years. it's not something i view as a near-term issue. >> we will be looking at the possibility of the regulation of those companies coming up in a bit on the program. andy hair key bang. >> what will it take for a sense of calm to return to wall street?

bob pisani tries to answer that. strong earning may not be enough to calm the market until the higher yields are resolved. 80% ofhe companies are beating earnings. earnings growth is 22% terrific. expected tonu con into the fourth quarter but it's not shifting because the markets shifted to rates and swing grow in china. macroissue. the main risk is rising rates on the back of strong u.s. economic data therefore the market comes down if the market believes first ten-year yields are not rising too much more say 3 process.5% and second that the federal reserve is not looking to rse rates as aggressively as some traders believe. in other wds taking out the words accommodative from the policy statements, doesn't mean the fed is going to keep hiking for years. they'll certainly not accelerate the gradual pat to rate hikes. the market needs to believe that. it doesn't. .market lls are pushing back on the interpretation. arguing that beyond the housing market the modestly high rates

we see are not a huge drag on the u.s. economy. a we haveady seen attempts to buy beaten up housing stocks for example in the last f days tie rates are rising but financial cons are not tight, meaning mortgage rights might go up but they are far from being abnormally high. the kpee remains strong yet is not overheating for nightly business report bob pisaniew at theork stock exchange. >> as with every sell i don't have there is usually a brigh spot. today that was boeing. the dow component blew past profit and revenue estimates and the company says it looks good right now. sending the stock up more than 1% on the otherwise ugly down day. phil lebeau has the details tonight. >> if there are any concerns about the global economy slowing down, they were not exhibited in boeing's third quarter results. the company beat the street on bothhe top and the bottom line. fth free cashlow coming in at $4.1 billion. in terms boeing outlook there is

optimism. the compa f raised thel year earnings and revenue guidance. its commercial airplane division is improving delivers and expects to improve through the end of the year. and it's not seeing a slowdown in china. e trade tensions from people wondering if we start to see fewer orders from ina. t boeing executives say they are not seeing that so far. the bolle rowe bottom line is this, boeing reported a much better than expected result the third quarter. and that optimism is also reflected in i fourth quarter and full-year guidance. phil lebeau nigly business report, china. >> and another bright spot late today was have visa. the dow component topped earnings estimates thanks to i increa total purchases made by people using visa cards. the world's largest payment network said it benefitted from higher credit card and debit card spendings wel as job growth and lower taxes. and that sent the stock in initial after hours trading. time to look now at some of

today's upgrades andgr does. and we begin with morgan stanley upgraded to outperform from market perform at wells fargo. the analyst expects the bank to increase financial targets in january, price target $60, shares though fell along with the m broad areket today to $43.49. lulu lon upgraded to buy from hold at can accord. the analyst cited the product development and international expansion. price target $160. nonetheless the stock fell 2% to 134.29. d young brands downgraded from hold to buy at stifle the analyst cited the recent strength. $ price targ. the stock dropped 2% to $87.06. still mixed messages is the market saying one thing to investors and the economy saying another?

>> new home sales for september fell for a fourth straight month to a two-year low. that decline of 5.5% adds to the repeat spate of weak reads on real estate. as we have been reporting rising prices and mortgage rates decreased afford bltd for some buyersnd economists say that's reduces housing demand. president trump has stepped up his criticism of the fed's monetary policy. during an interview with the "wal street journal" mr. tru

aid the fed chairman stands on rate increases threatens economic growth. he added while it too early to say he may have regretted nominatingenowell to theal bank. the bank has hiked the ratee thmes this year and another increase expected in december. in the meantime the beige book released todayib des the u.s. economy a as growing mopstly. the s shot show shows persons experiencing labor shortagehe noticing impact of the trade war with china and simmering tensions with other trading partners. and facries say they are raising prices because of triffs. we president of the cleveland fed said today she is not adjusting her pol because of the drop in the stock market lortasters said the economy is strong, labor market is solid and no sign of a recession any time soon. but as steve liesman reports

it's the split between the declining stock market and the rising economy that investors have struggling with. >> the recent selloff has feature addole reversal normally opt michk investors grown worried abouthe outlook and usually pessimistic economists. includes the tariffs backup higher interest rates from the federal reserve and the effect of those on sectors like housing and autos. also onis the slower global growth higher oil prices and ower guidance from some companie it's amounted to a three-week selloff that shaved 500 points off the dow jones industrial average. but the same earnings are seen as positive by economists. estimates are for 25 peppers tax cut fueled earnings in in quarter compared to last year. that's the third quarter in a row above 20%. aerall u.s. growth is running percentage point above trend and the unemployment rate is 3.7%. the lowest since 1969 and most believe headed lower. inflation at just over 2% is

mostly tame. both sides agree the economy and earnings will slowerrom but they debate how much. >> we expect the earnings growth will slow from 25% growth to 2018 to 5% gwth in 2009 and the reason for the slowdown is one going back toward a moreal no earnings growth rate for s&p 5 to 7% but whethers w think the growth is challenged by tariffs, stronger dollar and curbed oil prices. >> the bull case though sees above trend growth continuing. in part because of higher spending on capital goods by companies motivated by the tax cuts. >> the capital spending thing is big. cap spendingro isng at 8%. so this is what's going to drive increased productivity as you know you have to have the greater productivity to get the growth rate o gdp up. >> no one is locked into current position. if the economy keeps running strong bears could be pulse and if if weakens bulls couldnce again be bear for nightly business report, steve liesman.

chinese and american businesses are trying to figure out how to minimize t of the trade war. nice yun has more on the trading relationship between the world's two largest economies. >> i met china's most prominent export fair, the canton fair in the manufacturing hub of guangzhou where is buyers from the u.s. and other parts of the world connect with chinese manufacturers of consumer products pre been going on for decades this weier because of the trade war people are nervous. the discussion is mainly how to minimize therempact of pdent trump tariffs one buyer told me he worked pout a deal to sel ng frying pans without the box because the box is subject to a 10% tariff. tie second point a lot of companies are dependent on china and can't uproot the supplyhain as easily as one mantai think. one american buyer here. >> these are robust sup y chains not just the factories but t printers supporting the

factories, the other suppliers and bcontractors that support the factories, trucking, shipping. all of tha has been developing for three decades. so i don't see a wholesale move out of china. but certainly everyone is looking at other options. >> what i found most sprites surprise something how chinese manufacturers are giving non-american buyers better deals. the chinese suppliers are worried because of the trade war. one indian buyer said he is surprised at the lower the chinese offer. >> while the non-american buyers are being cut better erdeals, an buyers are still working out how to deal with the extra costs. for nightly business report, eunice the yun in guangzhou. >> in in fact trade war concerns overshadowed concerns at ups. the delivery company reported disaping international results which ups says was caused by slowing economic activity resulting from changing tradeci po. this ceo did say he expects

overseas operating profits to rebound in the fourth quarter during the holidays. ups shares fell 5.5% to 107.93 today. boy a tough quarter for at&t. the company lost more satellite tv customers than expected during the summer. and it's over the top streaming video services added fewer subscribers compared to the same period a year ago causing profitsis to analyst estimates and the stock punished down 8% to $$30.36. meanwhile revenue at general dahms fell short of expectations. and investors cppearedcerned about lower business jet deliveries. when asked about business with saudi arabia ceo on the earnings confethnce call said e has been no indication yet that it's $10 billion sale of armored vehicle has beenat cked by the controversy around jamaul khashoggi. generall dynamics f to 173.24. rival northrup grumman

topped expectations saying a rent acquisition and strength in the aerospace systems and mission systems units held results. the company also hiked earnings guidance for the year but sales forecast unchanged. shares fell 6% to 285.86. after the bell ford reported earnings that beat analyst estimates by a penny. revenue was also stronger than expected but the company reported a lot of weakness in many of the foreign markets. as a sult, ford says it does not expect to hit the target of rehing 8% profit margins by 2020. nonetheless shares initially rose h in afterrs but finished the regular day down more than 4% to $8.18. also out after the bell, tesla reported a surprise profit and better tn expected revenue np investors have been concerned the electric car maker would need to raise additional capital. but the company says it expects the cas position to remain consistent even as it repays debt and so shares took off in the extended session. finishing the regular day down

nearly to 288.50. and advanced microdevices reported weak revenue and issued sales guidance below estimates. the chip maker is facing soft demand from cryptocurrency g mir fophic processors. the stock fell more than 20% in initial after hours trading. extending its 9% decline in the regular session. coming up, one of silicon valley's techs ceo calls forri er data privacy protections. but could that be a bad thing for shareholders?

late tad amgen says it's cutting the price of a anti-cholesterol crewing to 60%. bring going down to $5,800 lower ritient co-pays and barrier erected by shurz resulted in disappointing sales. the compaes making rival drugs have announced rebates and discounts earlier this year. exxonmobil was sue by the new york attney general by for misleading investor on climates . the suit alleges the company did not sell investors about the true riskses to the bus posed by climate change regulations. the lawsuit does not charge the tp company with contributing to climate change or suppressing climate science. it does claim that the former ceo rex till erds was aware of the fraudulent vior. >> upon a day when extra

attention is paid to the tech sector the ceo of apple had harsh words for howther silicon valley company manage data they collect. during a privacy conference in brussels todayoo tim said personal information has been weaponized in his words. but he stopped short of naming facebook and google specifically, two of the largest companies making money byin se ads. >> we shouldn't sugar coat the consequences. this is surveillance. and these stock piles of personal data serve only to enrich the companies that collect them. this should make us very uncomfortable. it should unsett us. >> mr. cook has long spoken in support of persona a privacy he often points out that because apple makes money selling devices and not advertisements it hass of an incentive to exploit customerata.

>> and connie joins us more to talk about regulating consumer data and what it could mean f the industry and for those who share -- the share prices of the companies. editor in chief at cnet. connie good to see you welcome. >> thank you. >> mr. cook has always been outspoken and plain spoken. and apple hasctually been pretty aggressive at guarding its users data, correct. >> that is correct. and the point that you made is well noted. apple makes most of its money for sales of the iphone. be, the hardware. it does make money from software and services but doesn't monetize the use are data i collects. it can afford to also take a stand on privacy. i'm nots saying that i not serious about it. tim cook is very genuine in how he talks about the topic. art fortunes are tied to the hardware and sof services. >> it's not just tim cook talking abouterhis. me of congress has been holding hearings. more hearings are coming as well. the possibility of regulation

ever how these companies manage their data and keeping it private, good for consumers, perhaps but it is it bad feh shder sns what do you think. >> well it's been a bad year for the tech sector when it comes to data privacy. we have the came brain damageta analreech at facebook. 87 mm users affected by that. google recentlyas forced to disclose that users of its google plus social network about 500,000 people were affected by there. breach these are large companies making most of their money from vertising and and pushing targeted ads. they need personal data in order to push the targeted ads. perspective,gheser sure you want your data to be protected. you don't want to be the victim of any kindf identity theft or privacy hack. very problematic to try to restore your good name after it's been stolen. for shareholders this is how the coanies make money.

facebook made about $42 billion in 2017. 98% of that was from ads. google, 110 or so billion dollars. 384% from ads. it's concern to shareholders process but famt think about it if users don't trust the platform they are not use going. if they areot use going there is nobody to target the ads to. there has to be some give here on the sidf the tech industry. >> before we let gou, do you think there is one company -- let's put apple aside because they do different things as you said they do the hardware. that is better prepared for regulation that might be coming their way? >> i don't think there is any one company. i do think you hear companies talking with the topic .the cryoceo of microsoft has echoed what tim cook said saying privacy a fundamental human right. the idea of protections i place

are something they are talking about whether they are forced to or not i the question. >> connie thank you very much. e thank you. and before mere is a another look at the selloff the dow tanked by 608 points. the nasdaq fell 4%, a loss of 329. the s&p down 84. and it's oy dnesday. >> yes. we'll see you tomorrow that does it for us tonight. i'm sue herera. >> i'm bill gorffeth. thanks joining us. have a great evening. we will see you tomorrow.