what does this mean for alibaba, baidu, 10 sent?n: they are at the top of the list, they are the social media king. it's allits offerings are newer. they have not had time for the ministry of public security and internet censors to spend as much time with them as they have, for in its, with wave all, which has been killed by censorship. chat is certainly a top of the list of things that will be affected. emily: we are still waiting for comments from baidu and tencent, but alibaba said that they would work with the government to protect content and customers. what do we make of this in the middle of a stock selloff in china and all of these concerns about the future of the chinese economy? gordon: i think that this is really related to the economy. the chinese communist the party knows that they are not growing at the 7.0% that they claimed and the opinion in beijing is that they are privately talking about growth at 2.2%. if you look at some of the underlying numbers like rail freight electricity construction, a lot of these numbers

lulu: uber found themselves a partner, baidu.ly: the number of china and runs 90% of this market. lulu: exactly, 90% of taxi market shares, 78% of private licensed cars, and they also launched a product which is a car sharing service in china already attracting 3 million people within the first few months. emily: what is it like to use uber in china, and across the different cities? it's a very localized business. lulu: it is quite localized. you would be surprised at the amount of people using uber in china. also, the purposes of it. if you tried using the equivalent of uber x in china, you get people picking you up. these could be government officials driving to work. they want to save some gas oil and that is why they are using the service. also, headhunters use it to find recruitment for silicon valley in china and some people are even using it as a dating app. the local adaptation of these apps is amazing if you look at it. emily: so, tencent blocked uber chat.h from we -- from wechat. wechat is huge in china. tencent locked

what they are trying to do to compensate is having this quiet operation with baidu. question of capital and talent in china. emily: what about the market? ubern -- can uber be the of china or the lyft of china? lulu: it depends how fast they expand. uber wants to be in at least 60 cities. expertiseve the local and navigate the regulations on the ground, they might have a chance. emily: interesting stuff. thanks so much for joining us here today. great to have you. well, washington, d.c. is looking to silicon valley for help. defense secretary ashton carter will be meeting with tech executives in the bay area. this is part of an attempt to bridge the divide between the pentagon and the tech community, leery of excessive privacy violations. be a defense department page on the lincoln site. they are looking for help to combating cyber threats. the fbi and the nsa are matching secretary carter's outreach efforts. i will have an exclusive interview with the defense secretary tomorrow at 1:45 p.m. eastern and i will also be sitting down with mark andreessen of andreessen h

baidu, the chinese search firm also among the top performers, up 5%.ers are back for netflix. this after we saw shares sink more than 7% monday. netflix still down about 25% for the week so there's ground to make up. apple, the largest impact driving the shares up 5%. still down 7% for the week. and while best buy shares don't trade here, i had a chance to speak to the ceo on the phone after ethe retailer reporting a quarter that beat expectations. he said there's no measurable impact from yesterday's turmoil on the business. adding we had a management meeting yesterday. we felt we had everything in line to manage the business. saying further knee-jerk reactions are not productive and can cause unnecessary chaos. jules described strong response to the apple watch. saying the two companies have decided to expand the locations it's sold to all 1,050 big-box stores by the end of september. a big increase from the 300 stores originally planned for the holidays. remember best buy is the only u.s. retailer besides apple to sell the watch in stores. kayla, ba

baidu down 40%. alibaba 34%. the only one in the green is ren ren, the facebook of china. so should you trust the bounce today? >> i'd be careful about the bounce today. these names trade very much in line with a london close. london and german stocks closed on the highs, closing the highs before we pulled back. these names are going to pull back tomorrow. i think they're oversold on the china implax i still think baidu is the best value in the growth in the group. i think around 130 you have a little more support. but again this is a stock i'm buying on weakness. >> you're saying you watch the london close as an indicator as opposed to the u.s. markets or what china's doing? >> the guys that tend to hold this and the hedge funds that tend to trade these things more aggressively are london-based or global-based funds. they trade with the london close for the most part. and you can see that with how these things will trade. >> tonight at 7:00 eastern time we'll have a cnbc special report, "markets in turmoil." we're getting you ready for the day ahead here in the u.s. that

we know there is ite from baidu, those are streaming services which you can watch free and they chargeercials. different model from japan. there are different challenges. yvonne: a lot of competition. grace, thank you so much for that. coming up next, room for improvement. they want india to short out its infrastructure stop. ♪ yvonne: checking some stories making headlines around the world. they said it is time for some serious dialogue between arab states and iran. the nations of the gulf cooperation council have assessed the deal. qatar's foreign minister said regional tensions can be solved by talking. myanmar are in moving south the more populated at -- areas. the delta has been swamped this week, hit by torrential rain. than 130,000 people displaced living in camps. says livestock and grain could danger food supplies. the presidential -- president of the olympic committee has downplayed questions about rio de janeiro. he is no special reason full confidence in the organizers. the governing body for sending and growing city one virus testing carried out after a report comparing wa

it has traditional carmakers checking google, uber, and even baidu.y're looking at the most detailed digital maps to guide itself driving cars. we have guy johnson to explain. underway.s a car race they're racing to the finish line to get self driving cars on the road first. maps are the tool in this race. >> it is really about getting from a to b. it is something that is embedded inside the car. it helps you get from a to b and helping you to drive. >> it knows everything in real time. audi team up and to spend billions of dollars to acquire nokia's mavs division? because they want to seize control. what makes it more valuable? apple with a nascent product and google with his google maps and tom-tom and nokia. >> there's some thought that it might go higher. the automakers may have landed a sweet deal learning to map the future of the auto industry. cory johnson, bloomberg, san francisco. >> checking other headlines for you right now, india's plan to improve the credit profile. dropped of insuring has despite assets being at a record high. they will

there are reports the stock market prices were pretty hard to search on the chinese search engine, baidu interesting to see the time lapse. i will show this later. you can see the #blood monday spread all of -- black monday spread all over the world. here's what users are saying when it comes to this crazy day of selloff. i keep going? some people down plane. one person saying -- here is was one user said -- finally, other people talking about the black monday saying the media seems to be hyping it up too much. one said -- back to you. rishaad: what is going on in singapore indeed and kuala lumpur. over to has london -- haslinda. a little bit better today. haslinda: not actually. market.n a bear from 2014 high. indonesia wanted to bear market on friday. not looking too great. the asia index falling further after posting its biggest drop in seven years. malaysia hard hit. more than $3 billion flowed out of equities. down to percent this month. a 17 year low. the worst performer in asia. a plunge in oil prices not helping. concerns and exporter, about dwindling reserves. a selloff to indon

it is attracting investors, including baidu and china life insurance. they put down 300 to $5 million for a show confidence. china is their biggest market outside of the u.s.. pimm: chief executive of the company that owns the old all three dating website ashley madison has resigned. he was that you executive of avid life media, and hackers exposed personal data of 37 members. now the company has been hit with a variety of lawsuits. there is some speculation that the week's turmoil may make fed think again about raising rates in september. jamescussed all that with bullard. the key question for the committee is how much would you want to change the outlook based on the volatility that we've seen over the last 10 days i think the answer to that is not going to be very much. said that the u.s. economic fundamentals look good. those are some of your top stories at the moment. day two of the jackson hole symposium is underway in wyoming the theme of the gathering this year is inflation and monetary policy. pimm: michael mckee and brendan have been there fol

one more question related to china, i notice that baidu, are among the strongest, up 3.5%.l that investors are less concerned about china? those had been down more severely as we got the china-related volatility over the past several days. >> i think so. i think there have been a number of people that have stayed on the sidelines. i think this pull-back has given them an opportunity to jump in. chances are people are probably not filling their full position, just nibbling at it because we don't know know where the trough is people are look at these as good opportunities, grid opportunities over the next couple of years. >> tell us about netflix. why is that less favored than some of the others as you look at it? >> yes, so if you look at, we've basically identified the five, using three things. one, market dominance, two, growth rate well in excess of the market. and netflix actually fits the bill on both. the third is valuation and we just want to in this trough kind of focus on those that have valuation floor if you will. so google for instance is kind of a no-brainer, tr

and your biggest loser is baidu down close to 6%. the next thing we'll watch is the you'european close in about minutes from now. could we be in for round two of the major volatility that continues today? we'll bring that to you later on this hour. we're joined by jon and kayla tausche. >> we had a very interesting morning. let's do a quick recap. let's look at the dow industrials. we were down 1,100 points and here is what's really important. real genuine panic selling like i haven't seen in years right at the open. like at the spy here and that was really the heaviest volume in the first minute or so. after we bottomed out, that's when we saw the volume actually drop a little bit and then as it started coming back, the volume increased again into 9:40, 9:45 or so. a bottom within three or four minutes. all the selling seems partially exhausted and then buyers just come in in droves after abowhen most of the heavy buying occurs. right now 110, 150 million shares on the spyder. that's real panic selling and panic buying occurring wit

baidu. seatrip and others are trading lower.it hard yesterday, chinese stocks down, and again u.s. futures down significantly after major declining for the market yesterday. >>> and gop presidential candidate donald trump weighing in on china, he said the currency devaluation will suck the blood out of the u.s. and accused china of dumping cheap exports in other countries and keeping american goods out. here's what he said -- >> i said, hey, carl, in fact now the press will call carl, i'm sure, but carl icahn, if i get this thing, i want to put you in charge of china and japan. can you handle both of them? okay. china and japan. he said, yeah, i'll do it, i want to do it. you know what? just relax, everything will work out fine. we'll make great deals. >>> carl doesn't like to wake up before 11:00 in the morning, there's a bit of a time difference issue, so i don't know how they're going to get through that. >>> a new poll has trump leading all gop contenders in iowa, though he lost some ground after last week's debate. >>> a lo

brands, baidu, the chinese google, and there's a nice bounce, sandra.ley: we looked at a lot of nice bounces and baidu most exposed up more than 4%. mcdonald's, yum! brands, huge in china. and wynn resorts, in macao, you know all about this, stuart. >> you big gambler. [laughter] and those that have the money are on the sidelines and definitely have stocks that were on seam. stuart: do you know what my producer said, the s&p is out of bear market territory. are you happy now, stuart. [laughter] no, i'm disappointed. i was saying we would get 5, 600 points up. a lousy 364. >> lousy? >> no, not lousy. i'll take that back. europeans-- i'm a recovered european, leading the way for reassurance that china doesn't matter. okay, larry, what say you? >> as far as china is concerned? >> yes. >> european leaders, hollande came out and said china is not a threat to us, don't worry, don't worry. what's that say to you? >> well, i mean, our politicians try to make everybody feel better and they're trying to make everybody feel better. it matters, if you were long equ

it makes sense that baidu would underperform. we have seen it outperform expectations. has been lowered to an extent that it gives us room for maneuver. i think it is likely to actually people would allow that. if we saw an outperformance of it, people would start to jump back on the bandwagon and given the fact that the firm has been buying up so many different brands, we were talking about the whole alphabet at google because they have so many different things going on. we can say the same thing about babbb. they have internet dating in tinder and an online app for ordering food. just eats or hungry house in the u.k. people are trying to gauge what these investments are going to look like going forward. therefore you know, today's earnings are going to be able to put a bit of flesh on the beend try and get people to really focus in on what these new investments will look like going forward and whether they are the ly making money in time being. manus: let's talk about the latest view for the company, which is suning. the headline, alibaba plots a comeback from the big

baidu is passive. a few have a handset, and it will pick up signals that the constellation of mid-earth satellites will tell you. this is a significant improvement. the chinese are deploying a series of new data relay satellite spirit china is currently mostly reliant on ground stations to monitor satellites and to pick up information. a larger constellation of data relay capabilities will provide betterth significantly coverage. interestingly, we think china may be developing missile early warning satellites. this should be a striking and sobering and useful reminder. china's space program has never looked like that of either united states or soviet union or russia. of the u.s. and ussr, one of the early priorities was developing missile early warning detection. is somebody launching a missile at me? china has the technology to do this, but up until the present, we have never seen any indication that the chinese were interested in deploying early warning satellites. now we think they may be working on

yd.com up 6% and baidu up 1.8%, and the discretionary sector topping tech as the day's top sector gainer so we've talked a lot about netflix and that rebound today. look at starbucks, a pretty strong movement there, up almost 5% and amazon.com up 3.5% and that's among some of the top nasdaq 100 gainers. melissa, back over to you. >> all right. thank you, courtney reagan. kate kelly with us now -- we're down big yesterday, up triple digits now. what are the hedge funds doing with the wild swings? are they making money? >> no doubt hedge funds were nervous yesterday but instead of dumping out of positions discriminately many stayed the course, selling things they didn't already like and keeping to the strategies they had before the meltdown began, be they bearish or bullish. some key themes in the last couple of days in addition to the widespread concern with china that security think was referencing in the stocks that were up and the lack of growth in europe, of course, a movement into less click call stocks like internet names, bearishness on emerging markets with some shorting developed

hitting a 52-week low today, as search giant baidu. wynn resorts with major exposure in macao now well into bert market territory for the year. at one point today apple was closing get to bear market territory off nearly 17% from its high in april. late morning we saw a big spike in volume and that has seen shares rising. we're now seeing apple here pretty much in fairly positive territory. that's one of the biggest reversals we've seen in a long time. on a day like today, you got to have a lot of courage to have your ipo go forward. not the easiest day when markets are down. global blood shatherapeutics ve much defying the string today. it has nearly doubled. >> bertha, thank you. >>> let's get a "market flash" with dom chu. >> selling shares of cree are on a tear today. the company swung to a quarterly loss as it logged $84 million inle charges tied to one of its big businesses, its first big annual loss since 2002. shares bouncing back a bit, up 8.5%. >>> a news alert in the bond market. 10-year notes up for auction. rick santelli a

we've been nibbling on baidu after they reported. we've been nibbling on alibaba after they reported. if you look at it, search still going to grow a lot in china. right? there are still a lot more people who are going to come on to the internet. it is kind ever where google was a decade ago, let's say. you loo being at commerce as well. with somebody like an alibaba. yes, they're interesting problems right now but mobile's continuing to grow. monetization is improving. we think it is important to get to levels where we start taking a very small position. we're looking to'd add but we think there will be better opportunities deeper into the summer. again, the stocks got crushed because business wasn't good. that's what you need to focus on. >> dan, unfortunately, got to leave it there. thanks so much for joining us. >>> melissa, thank you. take a look at the top salaries for major league baseball players this year. a little sports trivia for you. who was the first player to make more than $1 million a year in his contract? we'll tell

baidu, mattel, staples, all break sharply lower. >>> august is traditionally a tough month for stocksou invest now through august and the rest of the year? about five months in august. jack ablin, jeff hussy is global chief investment officer at russell investments. jack, i was reading notes you gave to researchers before you came on. you seem to be hanging on in in the stock market but still suggest it may be massively overvalued. i was trying to work out why you could have those two views. >> sure. valuation is not by itself a timing tool. so we can get a market that's expensive and keeps getting expensive. in fact, if we decided to just sell on valuation by itself, i think we could have been out in the market either in the fourth quarter of 2013 or the first quarter of 2014. generally what we like to do is stay with momentum, stay with a good thing as long as it keeps going. >> but jack, that's a very big overvaluation you are suggesting here, 25%. that's a monumentally imbalance if you're correct, isn't it? >> well, in the long term of things it absolutely is. part of it is i look

and your biggest loser is baidu down close to 6%.t thing we'll watch is the you'european close in about minutes from now. could we be in for round

some of the biggest gainers, baidu up 50% since monday. netflix is up 37% since monday.rbucks 32%. still all these stocks are not above where they close on thursday. it's amazing. >> it really is amazing. it just proves that even if we're not at the bottom history always shows that if you use dips wisely and to your advantage over the long term it does prove to be a good strategy. right? >> exactly. here on the nasdaq, mandy, we're up by 2.3% and technology is certainly one of the sectors helping to lead the market comeback. on the cnbc news line is dan niles, founding partner with alpha one capital partners. dan, we spoke a couple weeks ago out in san francisco and you said the market was due for a correction. well, we got it. what are you expecting next? >> well, i mean, we did get the correction. we used that to go ahead and actually cover most of our shorts earlier in the week starting friday. and we've started adding names on the long side thankfully before this latest run-up over the last couple of days. our belief is that the market has probably a few more percent