let me start with you, jeff, because baidu has not seen as much of a selloff as some other companies,ecause consumer demand in china is still strong, but what are you seeing about a strong macro trends that baidu has to deal with with alibaba and tencent? jeff: the biggest one was what you and your team highlighted earlier, which is the shift to mobile, and that affects how it works, and the second thing that baidu is doing is moving services, soap on-demand services letting consumers buy things by search or a -- so on demand services letting consumers buy things by search. and we saw their investment in uber, and they are executing quite well in china, so those are what you are eating play out with baidu and there is the strength of the -- those are the things that you are seeing play out with them. emily: and they are also looking at buying the nokia mapping business. what do you see as sort of the big picture challenges? >> we are venture capitalists. we invest in the early stages of a company's life. that being said, we think less than half of china of us is population is on the i

baidu is also looking to i know ps mapping business. --buy nokia's mapping business.hat do you see as sort of the big picture challenges? >> as you know, we are mark -- not markets, we are eventually venture capitalists. we invest in the early stages of a company's life. that being said, we think less than half of china of us is population is on the internet. it is a massive opportunity, and quarter to quarter, there were expectations, but on a long-term basis, i think they have a tremendous opportunity ahead of them. emily: in terms of margins, operating profit down to and a half percent from a year ago. we'll continue to look at those headlines. but i want to talk about another story we are watching in china and that is gsr ventures launching a $5 billion fund to buy gold -- global tech internet and biotech companies. this is not the first time considering cross-border deals, like philips lighting, $2.8 billion. today's announcement comes as chinese markets are hit by the steepest decline in eight years. the shanghai composite tumbling eight and a half percent at th

you have baidu backing uber.uge competition in this market, billions of dollars at stake and whbaidu sees opportunity. it seems more to come on this. the company and uber not specifying numbers. exactly a terrible situation for baidu. yvonne: thank you. coming up next, closer look at the global selloff and opportunities. we will have that when we return. ♪ yvonne: checking some stories making headlines -- greece talks stocks as the shutdown of the financial system enters its fifth week. officials from the ecb and the imf are in athens to hammer out reforms needed for a third bailout. prime minister alexis tsipras told party members debt relief is being openly discuss, although it is not in the formal agenda. restructuring will be necessary in greece. -- horsesurity forces remain on alert after 10 people were killed on an attack in a police station. officials are blaming pakistani militants. the most serious on indian soil since the prime minister came to power. pakistan's foreign ministry condemns the attack whic

baidu had been under real pressure. the stock of the chinese search giant had been down more than 13% so far this year. now it's down a lot harder at least part of it has been the spending baidu is doing in mobile and offline services. remember baidu allows people to search and buy movie tickets. it's one way they differentiate themselves. baidu reported q2 shares but revenue was just in line. expenses rose sharply, surging more than 80% year over year and that was mostly because of promoting those offline services. turning to q3 baidu guided for third quarter revenue which is a bit light. on the conference call expect analysts to have questions about the outlook for spending and how those knot nonsearch businesses are also doing such as baidu's travel and video site. for cnbc i'm josh lipton in san francisco. >> while swings for chinese stocks stepping up intervention but what's the human cost of these market moves? stay tuned to find out. need to hire fast? go to ziprecruiter.com and post your job to over one hundred

." >>> earnings alert on baidu just out with its earnings. josh lipton in san francisco with the details. >> sara, when it comes to baidu market pros ask are investors willing to stick around and see if all that spending the company is doing pays off? not if the action after those latest earnings report is any indication. baidu had already been under real pressure heading into this print. the stock, the chinese search giant down more than 13% so far this year. now it's down a lot harder. at least part of the worry, all the spending baidu does on mobile and offline services. remember, baidu allows users to both search and buy items such as movie tickets. it's one way the company tries to differentiate itself from rivals, but that spending can also pressure results. baidu just reported q2 earnings per share that beat but revenue just in line. expenses rose sharply, surge 81% year over year. and that was mostly because of promoting those same offline services. turning to q3, baidu guided for third quarter revenue that ways bit light relative to

baidu is projecting third quarter below its forecast. of the biggest social names reporting this week twitter later today and facebook on wednesday. stock performance over the last 12 months as you can see right there has varied significantly. facebook shares trading in record high territory up 25% while twitter is down 9% due to a turbulent ride. when it comes to the second quarter, which social stock will win the face-off? twitter in transition. they're on the hunt for a new ce o'after the departure of dick costello. and jack dorsey with twitter. they may disappoint again in the second quarter. as you can see, facebook has more than four times the monthly average users. meantime analysts expect revenue to jump 36% on the year thanks to me beal as well as video advertising. this to help twitter's top line, which is expected the grow more than 50%. in general, two very different social media companies. i always feel bad for twitter. for them it's not only user growth and management but who's going to lead. he announced he was stepping do

they soared because baidu is trying to be all things on the web. i'm calling it a sort of online poo-poo platter. take everything from amazon to netflix and grubhub. that has to be one of the dumbest ideas out. there think about it. baidu has the search market all to itself without google yet it decides to go after every cockamamie area of e commerce where it faces genuine competition, these guys are nuts, they're nuts! they know nothing. the worst part of the conference call, the mention of one of the original shows called "running man." ial a tell -- i am telling you this thing -- it's a cross between the bachelorette, mcgyver, fear factor and "american idol" and the first time i could remember watching a show and praying for a commercial break. anyway, next thing you know the market opens up down 4%. i said wow, this is the positive set-up i have been waiting for. instead of china opening higher, filled with hope, we're opening opening -- or opening flat, it finally opens down big. that is the maximum fear signal i have been looking for and i sa

i think it is going higher. >> baidu? >> baidu i think is a hold.is no-touch right now because of everything we know's going on in china. >> that does it for us. "power" begins right now. >>> scott, thank you very much. tyler mathisen here. mandy drury will join me in just a moment from the new york stock exchange. >>> behind me is an octopus. we're just using it to show how much reach china has in this global economy. the picture in china impacts u.s. stocks, european stocks, etfs, gold, copper, the fed, currencies and more and over the next two hours, we're going to tie it all together in an octopus' tentacle and give you ideas on how to play all eight of them. because it is such a big day for stocks, mandy is at the nyse. >>> hey there, ty. hello, everybody. a lot to get to on thi

baidu is a big loser -- down the most in seven years.witter sales the estimates but shares fall as outlooks look low. -monthimbs from four low but is facing a global glut. welcome to first upcoming live from bluebirds asian headquarters. -- bloombergs asian headquarters. zealand,oing to new seeing some weakness down 1/10 of a percent. snapping that losing streak that they saw. we saw comments from the governor talking about further cuts likely to come, but he said several factors could be supporting growth in new zealand. it is not weak enough for large rate cuts as some have been speculating. the new zealand dollars but is actually gaining. we are counting down to the opens in australia, japan and korea. we are expecting retail sales from japan coming out later this hour. bk 225 closing down 1/10 of a percent. futures pointing to a higher open. the dollar/yen is weakening. it is almost as if three weeks of intervention in the markets did not happen -- we are talking about china. the losses were not as severe as the day before but stocks

as kline concerns predominant will also get earnings from baidu.ng me is dan greenhouse and stephanie link also with us "fast money" trader tim seymour. tim, china, china, china? >> yeah. people had started to feel china was stabilizing. we got a bad pmi number friday. the policy officials are sending very mixed messages. the whisper overnight was they would step away from defending the market. they came back in and said that's not true. almost explicitly saying we are going to defend this market. i think if you look at the broader market reaction volatility is being priced into a lot of different asset classes. china by the nature of its overall weighting is dragging em to five-year lose. essentially the march '09 lows. it's setting up for a total washout or we keep going. >> stephanie, which of those two options? >> where do i begin? >> when people say as we are, seeing the lowest level since the financial crisis for a lot of commodities, for some of these markets, there is reason to be concerned, right? >> commodity sell-off is something to keep

it has to do with baidu. you've googled yourself on baidu. >> you've baidu'd yourself on baidu? have you? >> no. have you baidu'd me on baidu? >> no. i baidu'd myself. it comes up in chinese. >> because it's a chinese search engine. >> i haven't done it in a while. i used to. they're forced to increase spending. >> a couple of years ago you were baidu'ing yourself? >> i did. >> you were streaming music too. >> becky was too. >> i'm going to baidu myself. >> baidu your name. it used -- >> look at that. wikipedia in english is the first thing. >> look below that. >> it's in chinese. >> do you read that from right to left? >> i don't know. i believe you do. >> i think there's different -- >> you have an imbd. of course, you do. >> i have one. >> wow. >> glenn close show "damages." >> i loved that show. >> i still think of her as alex what's her face. i don't know. >> baidu's current quarter -- >> the current revenue was out. and bp's quarterly profit missed the mark. taking a pretext charge related to that 2010 spill in the gulf war unto its settlement. bp's also cutting its spendi

baidu, down 4 1/2%. baidu reporting earnings after the bell today. they released very troubling second quarter guidance. poor baidu, timing of chinese stock market and earnings call not good for them. ge was a little higher today. that was outstanding the only positive step for utilities. otherwise nine out of 10 s&p sectors were down in today's market. 3m was down half a percent today. once again looking at dow down 126 points. five down days. the longest losing streak in six months. high volume today, 10% higher than the average daily volume. that's about all i got. back to you guys. >> hoary rothman, thank you very much. on tough day for the markets. thank you, lori. melissa: new concerns what is behind the major gains we've seen for stocks. just a handful of companies are driving the gains, six to be exact. samamazon, google, facebook, netflix, apple and gilead account for half of the $654 billion added this year to the nasdaq. that data was compiled by jones trading for "the wall street journal" those tech heavy names helping drive nasdaq up% co

the baidu forecast trails analyst estimates. they say they will earn between 2.3 billion and 2.5 billion. the process of transforming -- transforming its business to focus on the mobile consumer in china. it is spending more money to drive traffic during peak seasons like the new year. rival back uber's major taxi hailing rival in china. rishaad: later in the show, looking for an international weekend. indonesia set some revised foreign ownership rules. tackling modern based slavery. there. human trafficking, but is there a political inference behind it? rishaad: let's look at some of the headlines making -- some of the stories making headlines. the greece financial shutdown enters a fifth week. primus or alexis tsipras telling -- prime minister alexis tsipras telling ministers debt relief is being openly discussed. afterts remain on alert an attack on a police station in boone job -- punjab. pakistan's foreign ministry condemned the attack which could derail cross-border peace talks. upgraded malaysia on its list of modern slav

caroline: i'm talking about baidu. the search engine in china.tes the market. 4% of internet users. they are looking outside their usual calling. they are disappointed in its numbers. 629 million active users. double the amount of use hears the twitter has. this company is only in china. its second quarter profits not looking so good. growth staying at 38% growth. some are saying this is of course linked to the economic slowdown. let's have a quick look at where they are moving to. they are going outside to search in the same way that google has. we're looking at competition. alibaba, they are all fighting advertisers to come to their website. online to offline is where it is at. they are getting into the digital wallets. you have video streaming. similar to moves in america in the fight for the competition. that really did hike up sales in terms of their costs. have a quick look at what else we're expecting. later today it is of course twitter, the company i'm comparing baidu to. they have about 300 million active user. they have a lot to prove

so what is baidu doing? focusing on mobile. but also online to off-line.s is about getting a taxi offline, about ordering your digital wallet, about being to able to pay. research and development is what it takes -- a 56% uptick in r&d. the video streaming, even in music streaming -- that takes money and that takes rmb, so profits will -- that takes rmb, &d. anna: thank you very much. caroline hyde. coming up next on "countdown," we speak to the ceo of the energy giant here on bloomberg. ♪ anna: welcome back. you're watching "countdown." you are the stories you need to know this morning. it's a volatile trading day in china. the shanghai composite is down more than 2% after sinking as much as 5%. the index dropped to more than 8% yesterday amidst concerns that the government's efforts to prop up shares would be unsustainable. reese is set to begin talks with its creditors about the country's third bailout today. technical experts from the ecb imf, and european commission are in athens to discuss policies. the talks, day after the former finance minister wa

. >> david, i think i found the worst quarter of the year and it is baidu.t's called buy don't. they had an 81% increase in expenses. they're doing this john line to offline business. they're doing a grub hub business. you're going up against amazon. they're doing streaming and deutsche bank takes it by the hold. they're painting a lot of their hopes on a show called the running man. my stepson is fluent in chinese and he says this is a game show where they set up some six or so men on the starting blind date with women and the person becomes their partner for all these weird competitions. they push each other out of rice bowls. and the final objective is to name a queen or king. that's the number one show. they're pinning their hopes on the running man. >> all you need to know. there's the opening bell. the s&p at the bottom. and at the big board, kevin oh leery. he's going to join us later. a huge flag of kevin outside the nyc. >> that was a little arresting to walk into this morning. >> over at the nasdaq it's bed bath and beyond doing the honors. a lot o

it is because deutsche bank cut its rating from baidu hold -- from by to hold.ominantld be the player going into the future. tesla shares are up 4% of their record high of $291 .42. take a look at my bloomberg terminal. under the function and are, you -- is athat analysts their lowest since august 2014. analysts are becoming slightly more bearish on the big momentum. mark: thank you, so much. let's get a look at the top stories classing -- crossing the bloomberg terminal. in a 16 fighter jet and a small plane have collided in south carolina. collided witht the cessna c 150 around 11:00 a.m. local time. it happened 11 miles north of charleston. the south carolina senate has given the final approval for a bill to remove the confederate side from the grounds of the capital, 36-3. it sends the bill to the house where it faces a less certain future. republicans met behind closed doors and struggle to meet -- to meetth consensus. hiker is dead and four are dead after a partial collapse of an ice cave in washington state. return tocrews will collect the victims body. a

shares of baidu falling down the most since 2009 after china's largest search engine company projected quarterly sales by trailed estimates. yesterday the company posted second-quarter earnings that also fell short. the founder, robin lee, wants to tap the 12 billion in cash to make inroads in businesses like movie, home delivery and car services. t-mobile adding movie services on theream for free wireless carrier. that is according to john ledger's blog post. the i'm carrier already has a list of streaming services that customers can utilize. uncarrier.alled revenuefizer posted that cap expectations. sales of the new cancer drug rose. meanwhile, merck fell more than half a percent from a year ago. they raise the profit forecast for the year. don't be surprised if pork is suddenly the menu special. pork prices have fallen 40% since last july. a jump in slower export growth boosting supplies in the u.s.. the largest producer after china. the federal government expects the pork prices to drop more than any other group this year. ef. the case with be retail prices will drop more than anyt

baidu for example. trading at its lowest in more than a year.he company's forecast for estimatemissed sales s. doing things like investing in a groupon style business, other related internet businesses that take you into real life rated that is not working of that will especially as china's economy is flagging to some extent. we are also looking at ingersoll-rand. buildings, air-conditioning downces, the shares were 5.7%. the earnings missed estimates, and the company says that its climate section did well, but the industrial was softer than they expected. the biggest one-day drop since 2011. then there is macy's. this is not have to do with earnings. the shares are down 1.5% after gilbert security cut the stock to sell versus a buy. tore is an opportunity profit at attractive prices, but quest forid the a positive golden real estate is a will there and. what is he talking about? seras separated a bunch of its properties into a real estate investment trust. there has been talk for a little while it macy's would do the same. take a look at my blo

chinese online search giant baidu is one of the big losers. that's on concerns about slowing growth in china and moves by the government there to basically stabilize or at least -- yeah i guess stabilize the mainland stock market there. that's pushing down j.d.com as well. weibo is lower. netease, a social media etf, and that's pushing shares of that fund down 3% as well. bright spot kraft heinz. also biotech from the flip side. social media stocks seeing real weakness. >> we'll get more on china in a second. >>> meantime, a bit more detail on what's happening with oil prices which are plunging by 6% on the back greece's no vote and also emergency measures in china to prevent a full-blown stock market crash all adding concerns at a time of global uncertainty. >>> the euro currency taking a bit of a hit after greece said no yesterday to more austerity. banks still closed over there. greece's prime minister set to attend a major summit tomorrow with the eurozone to unveil new proposals. michelle caruso-cabrera is live in athens with the latest.

it was not like baidu which was like listen we don't care. they actually care.he periscope was a bad idea because the body language was like we're two and 14. we're going to make the playoffs but it'll be a long time. i said listen guys i mean smile, do something, your body language is terrible. he said it was a demonstration of the product. i said there is an element of theater involved here and this was a -- a show that flapopped and got a bad revenue. >> to be fair they just don't have any growth in the chart in monthly average users which is important. >> there's also this ratio of daily users to monthly users down. that ratio comes in 8%. i mean the issue of growth is one thing. the issue of existing users suddenly not checking in is something else entirely. >> what's clear is in the next two quarters you'll have growth down. it's down. it's not flat. it's down. >> in user base. >> yeah. that's what it sounds like. david, i'm going to tell you something. it's going to make your ego feel really big. a lot of this conference call was about you. that was the s

. >> baidu. ouch today. 52-week low for the stock.tor what itretary sector weight on the back of earnings. baidu providing search traffic may negatively impact revenue and shift to 020 could lead to higher monetization. facing competition from alibaba. that could last for years. >> bojangles upgraded to buy. >> next year paypal initiating with a buy rating. this is a recent spin from ebay. there is a scarcity value of the stock. there aren't too many other stocks out there that are large cap, high growth have secular tail winds and global brand. the balance sheet is strong. no debt. more than $6 billion in cash. analyst likes the acquisition of zoom. >> what is on "fast money" tonight? >> you are like a carnival barker. >> half right. >> twitter, yelp panera. what do they have in common? reporting earnings. we'll be on the conference calls and get you set up for tomorrow morning. >> if you want combine those companies into one, be spectacular. "closing bell" starts right now. ♪ guess who's back ♪ ♪ back again ♪ >> the music sounds dif

baidu? >> i have a winner.ducts has seemingly raised their full year adjusted earnings guidance to a range of 6.50 to 6.60. previously, 6.35 to 6.55. stock had been down. a bit of a range after a big run-up. as you point out -- >> margins up 430 basis zoints are you saving timo for later? >> he is doing what i do every day watching cnbc and then he writes, check out t-mo's q-2 numbers and hand our competitors a tissue. >> thank you you. carly and david faber, he has us all. >> $6.1 billion up. total revenues of $8.2 billion. they continue to take subscribers. where they are coming from of course when you hear from verizon or at&t not us, not us. as he likes to term them dumb and dumber. marcella clowry hasn't fired back yet. >> when you are looking at a 3.4, 3.9 million growth when i thought it is wa going to be 3.5, when john was sitting here as co-host, i would come up and say, there is someone who is losing like mad against these guys. i have to hand it to him. he plays in a feisty way. he does deliver e is

baidu slumps after second quarter earnings fall. coming live from bloomberg's asia headquarters in hong kong. good morning. i'm even ony

. >> baidu? >> baidu i think is a hold. i think it is no-touch right now because of everything we know's going on in china. >> that does it for us. "power" begins right now. >>> scott, thank you very much. tyler mathisen here. mandy drury will join me in just a moment from the new york stock exchange. >>> behind me is an octopus. we're just using it to show how much reach china has in this global economy. the picture in china impacts u.s. stocks european stocks etfs gold copper the fed, currencies and more and over the next two hours, we're going to tie it all together in an octopus' tentacle and give you ideas on how to play all eight of them. because it is such a big day for stocks mandy is at the nyse. >>> hey there, ty. hello, everybody. a lot to get to on this day of another big asian sell-off. china losing 8.5% in overnight trade and the hang seng in hong kong also dropping 3%. japan a more muted drop but i think you get the picture. europe falling as well. germany and france bearing the brunt of the selling and the d

and baidu reported a not so hot number tonight and they're down huge. i'm sure we'll be hearing it don't buy tomorrow. no matter both the fed and china inspire selling in pretty much every sector. international stocks are tagged by yes the super freaking strong dollar. ♪ she's super freaky now ♪ >> that will get stronger. financials have been looking good until capital one issued a radically increased -- bringing back the credit woes i thought we were done with those. but the biggest thing is how we react to news. the health care mergers aren't helping one bit. the reaction is cigna's merger was negative. and the continuing decline of skyworks solutions after a fantastic quarter. i read it over again this weekend. i said why are they selling it? well, they have given up on it. they have given up on cell phones. worst of all anything commodities. that's the real pain in the market. i think we forget that during the great shale boom in our country a huge number of oil and gas companies became public. and they have become toxic to all who touch them. you k

watch baidu, as well as what's going on in greece. >> markets up, down, sideways and all over the placepe of environment there is not much i want to do. it is the gloria gaynor strategy, "i will survive." >> next week you get some short-term resolution with greece -- >> only the market gods. >> for $200? pete? >> we talked about volatility at the top of the show. i brought up the financials. i like the way certain things are setting up right now in the financials as we go towards earnings. look at jpmorgan the way it is holding on to that moving average. i like that. we had some upside buying in there today as well. some unusual activity. they're going out to july and buying the 71 1/2s. i think these financials have upside. >> i think we should talk more than we are about earnings. you think, josh? we get away from china, get away from greece a little bit and really get into the wheelhouse of what drives this market. >> sure. the best thing you can say about this coming earnings season is that you really have a low bar. you really don't have great expectations. pretty much everywhere y

baidu is a big loser -- down the most in seven years.ales the estimates but shares fall as outlooks look low. oil climbs from four-month low but is facing a global glut. welcome to first upcoming live from bluebirds asian headquarters. -- bloombergs asian headquarters.

i would rather buy baidu that got crushed. the reason they got crushed is because they're spending much more on adding to another element. which is their, which is their commerce, to compete with baba. so i would rather go there. there are other social network names i would rather go to. this is not one. >> a buy on twitter and a hold on facebook. jimmy, i'm wondering if that's backwards. as you look towards facebook's earnings after the bell and the fact that they've crushed it they've killed it. >> they have. so the answer to your question is yes, but here's the caveat. if you're looking forward -- first off, facebook is probably going to crush it after the bell, anyway. so let's not dispute that and twitter is a mess right now. what you can't ignore is the 326 million users. i think that's the number i saw. that's a huge asset. it's a question of how do they unlock the value. and frankly, the facebook comparison is interesting to me. you'll remember two years ago, facebook was looked at as roadkill. you know the stock was d

canonday, baidu and released earnings.ng trade ministers for five days of meetings on tuesday. dupont and twitter reports earnings. in asia, we will be react -- watching reactions to the philippines president and his 2016 budget, three chilean pesos -- 3 trillion pesos. clso in washington, the fmo ending is meeting to end monetary policy. on thursday, profit reports from samsung, sony, and colgate. may haveumer spending helped the economy rebound in the second quarter. sharp,ay, exxon mobil, mitsubishi will report earnings. japan's cabinet will hold a conference on the country's economy. the imf warned last week that japan's debt could triple by 2030 if they do not change their economic approach. yvonne: a lot going on. for more on the week ahead, we are joined by mike accardi -- mccarthy, market strategist. thank you for joining us this morning. as we just saw, a lot going on in the u.s.. we have a lot of economic data coming out. second-quarter gdp numbers coming out. we have seen a mixed bag in terms of earnings in the

throw baidu in there. throw all the ones that have done earnings. >> i guess it does at some point. i don't think it's tomorrow, though. guy pointed out that this thing bounced in the after hours. it is knocking around. but i don't think it goes back for exactly these reasons. there will be a time when that tide sxhaz and everybody will have to rush for the door. i just don't think it's tomorrow. >> we are officially halfway through earnings season in both the nasdaq and the s&p rallied just under 2% in the past two days. oil seeing a big move higher today. so now what? all clear to buy? we're halfway through. things are okay. guy? >> technical levels still matter. i know the russell closed below 121. that's been our line in the sand. but it closed a hair below 121. now you see that north of 122 again seemingly holding the levels. the s&p did not test that 2054 level, got close, didn't test it. we've bounced again. transports have not mattered. seeming to find stability in oil. ten-year rates, 2 1/4, what was resistance going up, support on the way down, seemingly bouncing off that,

i was speaking about companied like baidu.> but what about, jim, the companies that are american companies that have been betting on china as a growth story like mcdonald's or yum brands or nike or even apple?cdonald's or even apple. >> last night on "mad money," i talked about given there is such a huge preponderance of growth from apple in china, that's why apple was down so badly. the fears are still going to be there. the consumers are going to slow. i did some analysis how much young would be hurt by it. expensive meals not a staple over there. >> back to normal today, jimmy. do we have too many places to trade stocks? are we happy that we do? >> i think that competition turned out to be really great. we need competition everywhere if we want to do something. if we are share holders, we hate competition. >> jim, want to get your quick thoughts on what looked like another solid beat on the bottom line, top line in raising earnings guidance? >> i saw the organic growth. i disagree with ivan. i think the combination of bever

then you look over at baidu. where they can find liquidity, that's where people seem to be wanting to move right now because they've got all of this extra added leverage and everything else that they want to be able to trade off of. >> so connect the dots for me. because we saw a huge flush downward -- >> in certain areas, yeah. >> -- in some of these chinese internet stocks. cena, sohu. >> so while folks are scrambling around right now, scrambling and trying to find where can i get liquidity -- >> but that's something different. these are stocks in america, adr, american investors trading those. and what's going on with the a shares and the h shares, it's a totally different investor base. so here we had a lot of american investors who bought into this bubble and now they're liquid e liquidating. to me they're two very different things. >> i think chair chasing each other around quite frankly and i think it's a circle. >> so they're not buys. because a lot of these chinese stocks they're incorporated in delaware

watch with china exposure reporting in the coming days procter and gamble colgate-palmolive, ford and baiduinese online search company that trades here. go to cnbc.com. we wrote up a story detailing all that. >> thanks very much. morgan brennan reporting. >> we've got about 15 minutes before the closing bell. dow jones industrial average remains in negative territory as the s&p 500. >> david darst next. when a moment spontaneously turns romaic why pause to take a pill? and why stop what you're doing to find a bathroom? cialis for daily use, is the only daily tablet approved to treat erectile dysfunction so you can be ready anytime the moment is right. plus cialis treats the frustrating urinary symptoms of bph, like needing to go frequently, day or night. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain as it may cause an unsafe drop in blood pressure. do not drink alcohol in excess. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoi

pacific crest pounding the table ahead of earnings monday for baidu.s should surprise to the up side. year-to-date best stock down 9%. gilead science says some pressure on the back of earnings this morning. piper jaffray defending the stock saying there is plenty of opportunity. the analyst acknowledges it needs new growth drivers. analysts will be looking for clues about m&a. >> home builder stocks have been on a tear. this is one way to play it. looking at the spdr home builder etf up 10% over the past six months. don't be fooled by its name. home depot and restoration hardware, not pure home builders. let's bring in diana olick with more. >> home remodeling is taking off. maybe it's that new home equity or jump in overall home sales. more than 2/3 of home renovation firms in q-2 reported 2015 year-to-date revenues and profits to be at or above prerecession levels. 1-5 reported revenues and profits are way up this year. future also looks bright. house says bids and appointments with proposals for remodeling professionals jumped dramatically. they poi

weibo, jd.com and ja solar and baidu all deeply in the red right now.d the question is it still safe to invest in china or should you avoid it? mike holland is chairman with holland & company and longtime investor and also on the board of the china firsthand which trades under the ticker chs. always good to see you. >> good to be here, thank you. >> scary for this a lot of u.s. investors their access is through the etx, which is china's large caps and conceivably they should be the safest place and yet that's where we've seen a lot of carnage. in the past month it's been down 15%. what's your message to investors at this point? >> well i stopped using etfs and index funds or recommending them to people a long time ago because of the crazy valuations that had been going on in the high-priced companies, melissa. to give you just -- you mentioned the shenzhen. shanghai which isn't quite so crazy, pretty crazy, lass dropped from june 14 a pe multiple of 108 times to today 55 times. that's the price earnings multiple so what you have is these really expensiv

. >> sure and we saw baidu get hit, as well. >> what's catching your attention here?act that you had the huge run-up in facebook post google. what worked for facebook is google. i think this quarter is fine but probably not good enough given the run we had. that said i don't think facebook is ridiculously expensive. . i think any pullback you're seeing now is going to be bought. >> mike? >> i agree, not a blow away beat on the top line. probably what people were positioned more for: maybe you could ask the cfo, don't they get another eight years before they have to waive the expenses? >> yeah, and i think the day of earnings is a little bit weird. you can only judge so much. if you look back three months i think facebook was trading, in the high 70s. mid to high 70s after earnings. people felt okay about it. it's new data. people have a while to digest it, see what's going on in the broader landscape and had a different reaction over time. i think you've got to keep that in mind. just what happens after hours as soon as this release comes out, could be different based

. >>> and china's baidu, the company stock price slid. if you'll recall, we talked about it.w finally baidu'd himself. >> i founded some stuff. couldn't understand it but i founded it. got some good pictures. >> you should at least get the chinese phrase for too big to fail so you can recognize that. i bet you it's -- i don't know whether it would be letters or whether there's a symbol that means big or characters. >> i don't know. i actually own a book. they made it into -- i have it but i never studied -- >> you know you open it in the back and go that way? >> i also have them in japanese. i've looked. it's like looking at something that you don't -- >> like teleprompter. >> kind of like the teleprompter for me. >> reading of any sort. i have to get back to flash cards basically is where we're at. >> this is still you. >> prompter is yours. >> yes, yes. >> i sprayed my hair today, sprayed my contact lens. >> did you really? >> i did. >> i'm hoping it's going to clear up. if not -- anyway. i only have one in like i told you. >> we have contact solution back there. do you wan

look at baidu. down $27. that's 13% and its shares are obviously down big.revenue is not quite what was expected and the business is not making as much money as they wanted it to. down big this morning. beware of terminator. elon musk and steven hawking and steve wozniack are calling for a ban on robot weapons. joining us is a professor ever -- at mit. we're talking thinking machines, machines that can make decisions for themselves and turn into weapons of war. i know you signed this letter and you're opposed to it. tell our viewers, please, how far are we away from anybody developing this kind of weapon? >> great questionment-- question. a lot of this in the past year has been advanced stuff, but this is down to earth, on the verge of existing now. we simply have weapons that aren't very smart you couldn't have a conversation with them, but they're very good at doing, flying around on their own autonomously, looking at people, and deciding this is a friend or this is an enemy and then the machine itself decides to go and do the kill. and this is what we now