guys, back to have. >> we'll take that one green spot today bob, thank you very much bob pisani. >>> look across the major averages, and you'll see the nasdaq is actually the worst performer today. let's drill down on that big steck no safe haven and stay-at-home winners like zoom are lower. dom chu has more. >> reporter: there's kind of that narrative in place right now, but look at technology, some would argue it is the most important sector to the overall market looking at the nasdaq composite, it is now down roughly 8% to 9% from the highs that we saw just over the course of the past couple of months as you can see there, if you take a look at some of the breakdown of what we're looking at in hot spots, recent bellwethers, take a look at cloud computing. one etf that tracks it is the ticker clou, the global ex-cloud etf. that particular move that you can see right here that right side is down 8% to 9% from recent highs. within that particular constituency, look at these -- these stocks over the last week that have been the ones kind of leaning to the downside. a cami down 7% and

let's get more on these markets now with bob pisani. >> bob hello, jon, the markets have got two problems, a macro problem and a little bit of a tech valuation problem. let me describe the macro problem to you very simple police there's an investment equation that's worked all year, and it's not going in the right direction. the investment equation is virus fears are increasing, plus no stimulus out there equals an earnings expectation and that's the simple equation why we've been down so much this week. the macro problems are very real that are out there right now on top of that, we've got some particular valuation problems with the tech area growth stocks have been notably on the weak side there you see the investment equation i was talking about, but growth stocks also have a rallation problem. you see most of the big names are down today were the numbers that bad for them, apple, amazon and facebook, no, but a lack of guidance from apple was a big problem. that's a macro problem that the company is having, but the simple fact is most of these companies are really expensive right now s

with eight days now until the leelection we'll have more on all of that first let's go right to bob pisani for more on the market selloff today. >> we are off the lows but just barely 3366 was the low today, 3381 right now. let's not quibble about a few points the damage is pretty widespread, but the general theme is cyclical stocks and stocks most associated with reopening stories are having a tough time of it. energy, oil down about 3% at 1%, banks, which had a good time last week not starting off the week well, industrials, another cyclical group and defenses will sectors like utilities and staples all down sap dropped as much as 21% over in europe here they cut their revenue forecast for the full year they expect a fresh wave of lockdowns to hurt demand through the first half of 2021 first off, first half is alarming but just the idea that general airically t general ai generically, people are betting it's a broader more than stock specific so we have no stimulus right now of any term, near term, long term, any term we have a reopening story that's going rather story, particularly over

been selling off based on the notion stimulus was closer rather than farther >> let's bring in bob pisanither look at this bob, we saw the market reaction here rick rightly points out the 10-year yields went from a-78 basis points, 79, down to 75 very quickly what exactly does this mean for markets as we head toward the last hour of trading today >> lou important is stimulus it's 60 points on the s&p 500. so it's certainly very important. most traders i talked to, and i've only had a chance to talk to a couple in the last 10 minutes, believe stimulus is inevitable, that somehow they're going to make a deal if not i think the market's going to be down a lot more. i think this is a little bit of a bargaining ploy to put more pressure on everyone to come together with a deal because maybe the deal, the negotiations were stalling, but most traders i talked, to dom, still feel a deal can be done in the near future >> all right bob, thank you, sir. we appreciate it bob pisani dow's down 233 dom, great to have you along, especially on a day like this. walking us through everything. dom chu. that

guys, back to you. >> thank you so much, bob pisani >> there is an anti-social media trade today, facebook, twitter and snap being sold off as well. >> julia >> facebook sinking nearly 7% despite the company reporting results that beat expectations on the top and bottom line what's dragging on facebook shares is the fact that the number of users in the u.s. and canada declooined from the secod quarter which saw a covid boost. limits on its ability to target ads from privacy regulation could drag on its revenue growth next year. ceo mark zuckerberg spoke about facebook's responsibility to mitigate the risk of civil unrest, which he says he's worried about by clearing you confusion and says they're working to prevent manipulation around the election. twitter shares plummet 21% despite, like facebook, beating the bottom line. twitter adding just 1 million monetizabe ablable daily active in the quarter ceo jack dorsey is making changes that should help grow their base in the future and they're working to make sure twitter is a trusted place for election news and information. these two companie

. >> let's go to bob pisani now. dow hanging on to a pretty nice gain this afternoon >> three to one advancing. there's talk about maybe less chances of a contested election and more certainty postelection. i think that matters a lot whenever you get semiconductors and energy advancing, that's sickcyclicals moving here. the travel stocks are down so the reopening story, the traveling story not very good today. staples are also lagging i'm optimistic because we're entering earnings season and the numbers are excellent. we've had a small group of companies that have already reported 18 of them. 17 of them beat by very wide margins. the average beat of these 18, 27%normally they beat by 3, 4, 5, 6%. 16 of the 18 are having their estimates raised in the fourth quarter. if that continues, definitely that's supportive for the overall market it all depends on the reopening story. some are hopeful more stimulus will come and we'll have more rotation, well, maybe. i don't see it the small caps are flattish, s&p not doing anyt

it is the same fund but they have tricks out will. >> bob pisani thank you.of etf edge, why he is the expert in there. steve grasso, how would you think of the qqqj in your portfolio? >> i think this is a sign of the times. i think the retail trader and the professional trader like to use these etfs i think what bob i think inned, z scaler is up 237% year to date zinca is up 55% year to date you are going to get more eyeballs on a gar mini i think the retail or the robin hood traders are going to get in there and look under the hood. i think basically, the analogy to the miners, it all sort of comes out in the wash. you would think beta on the junt they are actual low both up the same amount year to date i think this one will be different, you have those large cam companies that really take all the attention and are the elephants in the room. but when you look at a z scaler i think people will going to start to pay attention to the innards of these names and they will ends up trading this as much as they would the regular qs if you are a junior type trader. >

and cnbc's bob pisani understands everything the market is sending a message, bob. what is it >> well, there's two problems, shep first, there's the virus wall street believed we would learn to live with the virus without slowing down the economy again. well, we may not have lockdowns, but we definitely have parts of the country that are closing the bars and the restaurants and the stores you see what's going on with chicago. call it lockdown lite, whatever you want to call it, that's going to hurt profits. and then there's an issue with stock prices these big tech stocks you just mentioned. apple and amazon, you know they're up 50 to 60% this year and if the economy is going to slow down in the fourth quarter, investors are starting to wonder, should we really be paying these sky-high prices for these tech stocks? >> understood. bob pisani, thank you. >>> good evening i'm shepard smith on cnbc. it's the bottom of the hour. time for the top of the news the sprint to the vote president trump planning an all-out blitz. 14 rallies scheduled between now and tuesday. the

nasdaq lower by 1% s&p 500 down by 1.6% let's get to bob pisani on what's going on here bob? q-3 numbers were improving as well this is all predicated on more stimulus and on the reopening going well and neither of those are going very well. so the market is not acting irrationally here given that those are the two big concerns take a look at what we got there is the s&p 500 here. we moved down in the middle of the day. various combinations of issues including sap announcement, ways on the market. if you look at sectors, the cyclicals are weakest. 7-1 declining stocks. more defensive oriented sectors like consumer staples still down but not quite as much. the travel and leisure sector, anything associated with the reopening. all of the cruise lines. most of the re tichlits that we earlier. there with are other reopening aspects. a lot of the restaurants on the weak side. some of the retailers like under under # armour and ross stores and american express oil is down 2% to 3% most of the day. no surprise on the prospect of the reopening not going so well. less driving there yo

bob pisani is watching this big down day for stocks. meg is tracking the latest spikes in covid cases and ylan mui on this tech hearing on capitol hill today let's start with you, ylan >> reporter: well, kelly, there was a lot of political drama during this hearing today but also an important discussion about election security. with all three ceos acknowledging that other countries are trying to interfere in our election, and they're trying to do it on their own platforms. >> we do continue to see interference we recently disclosed actions we took on both russia and actions originating out of iran. >> we do continue to see coordinated influence operation items. we've been very vigilant we appreciate the cooperation we get from the intelligence agencies and as companies, we are sharing information. >> like jack and sundar, we continue to see attempts by iran and russia to run these information operations >> now, the companies are getting pulled in two different directions on this issue republicans are saying that if the platforms themsel

the future and the future it is seeing now is not the future it had been anticipating, shep >> bob pisaniith some reality. thank you. >> mountain lions get a little too close to california, and a police officer rescues a man from a car on fire on a cnbc trip coast to coast. ♪ ♪ >>> virgin ♪ ♪ >>> virginia, a wrong-way crash leads to this. >> back off! >> manassas park, 30 miles southwest of d.c authorities say an off-duty cop pulls a driver from a burning car. the officer turns his body cam on moments later the flames reaching overhead power lines. driver's okay, bu >> get back. get back >> the driver's okay, but police arrested him for dui >>> california mountain lions on the loose in the bay area here's one outside a home in morgan hill in silicon valley. security cameras show the big cat walking on to the front porch and checking out the halloween decorations. decorations. >>> kentucky an elderly coupl >>> kentucky an elderly couple from lexington reunited after battling covid. charles and nelly van ness married 71 years they spent 10 days in separate hospital rooms >> i love him just

to bob pisani. orgive me, to rick santelli >> hi, how are you doing, carl intraday of 10s. we had inflation data on today and it was generically as expected but if you look at the charts, the long data treasuries started to give up ground on price and yield long before the data was released now we're down about half a dozen basis points on the longer maturities and if you open the chart up month to date, you can see that we just haven't had the horsepower in a ten year to close up into the 80s. that's important, especially considering all the data and information that has been coming out and when you look overseas, the story is exactly the opposite it isn't about the high side of yields, we're at minus 55 in a ten-year bund. should they close, the lowest yield close since the fourth of august so over 2 months since we have been closing at these levels and i think what it really is the conversation that we're having right now in many parts of the globe, certain aspects of the economy and new businesse

let's get to bob pisani. >> good morning, guys. three to one advancing to declining stocks, nice muted week overall what is not muted. look at the sectors, banks moving up, yields moving up here, that's the kbe, etf there, that's up 7% this week there is your big winner right now. industrials, energy fair, techs down primarily because of intel and semiconductor he wassing on it speaking of intel, the earnings, not many earnings misses this quarter so far small number but if you miss, heaven help you you can see here, intel to the downside, american express also down a little bit, but cleveland cliffs did well, illinois tool works good numbers, capital one just killed it and we're seeing a little bit of price moves on that, that's something we haven't seen a lot, companies beating good numbers, but not seeing a lot of price moves. so we're a quarter of the way through earnings season. we have excellent results overall, we have been putting the numbers up all week, beating by 20, that's huge the historic beat, 3, 4, 5%. way above exp

since then on renewed hopes for a deal is there too much hope being placed on this relief bill bob pisani has more for us now bob? >> everyone's head is spinning about stimulus and how to interpret it let's take a look at the sectors today. we're still up pu thebut there' change in leadership in the mid. date technology is now leading here industrials, energy, have been leadership groups, the cyclicals on hopes for a stimulus. this is lower today. this would suggest that the mcconnell comments are having a big impact on the market that you might not get a stimulus deal remember how confused traders are. i can't describe how clueless or not? do we have a big deal or a small deal do we have a preelection deal or postelection deal? we really don't know and the trading community is throwing up its hands. they believe somehow we'll get a deal somewhere down the road either from pelosi, ymnuchin, trump, the martians will land and save us. we have new eyes on fedex and eaton and industrials. that's a cyclical play on things getting better on stimulus the banks have been in a mini rally in the la

let's go to bob pisani for more on this lack of guidance bob? >> kelly, once again, the fourth quarter, another quarter with the lack of guidance it's a bit of a problem because the analysts again having a hard time figuring out what the right numbers are. remember, the earnings numbers have been coming in very well, generally weathering but again, big companies, no guidance from caterpillar, 3m, xerox, stanley black and decker. others like harley davidson didn't give guidance either. raytheon, corning. no guidance from companies. analysts have a tougher time and they've been very conservative and wrong so far fortunately wrong on the conservative side. look at all these companies out there. 83% are beating for the third quarter and they've been beating by almost 20%. it's an amazing beat and shows you the analysts have been way, way too conservative look the cummings today, they make truck parts, truck engines all over the world they had numbers no analysts had. they were 40% above the consensus numbers. amazing blowout numbers but the stock is

. >> we got within four points of 3,400 for the first time in a couple of weeks, let's get to bob pisanit day of the quarter, nice start 4 to 1 advancing to declining stocks, we're close to 3,400 but almost 200 points away from the old highs we had a nice correction in the middle of september. take a look at the sectors, nice move up in semi-conductors, good news out of st micro, good guidance from them, consumer discretionary, industrials, modestly strong. again, banks and energy lagging here, this is the story for the last quarter, starting off with a story for the fourth quarter stimulus matters a lot why does it matter because people are really getting concerned about the layoff numbers and people are looking for some -- even a triage help for some various industries you have heard about all the layoffs that are occurring with american and united, all state, disney was the other day, marathon petroleum, royal dutch. long list, it gets longer every day. dow you're going to hear a lot about this in the next few weeks because when the earnings announcements are made that's when they're

. >> all right, guys so much to process as david says let's get to bob pisani, see what's moving, hey> happy tuesday no announcements to throw us off, though europe is still down 1% take a look at the sectors, similar pattern to yesterday, now, the semis are holding up all right. xilinx is up 10% or so consumer staples again, outperforming. defensive sectors looking better but the cyclicals, like yesterday, industrials, energy, banks, down for a second day in a row. banks had a great time last week not so good this week as yields have been moving back down what is moving as well, these thematic tech etfs, these investors love buying, lithium and gain, cloud computing etfs, 3-d printing etfs, every day they move up on decent volume, a lot of investor interest in buying tech in this particular manner the thing is guidance. what i see is the lack of it big companies, not really providing any kind of explicit guidance again, this is a problem for the analyst, caterpillar, 3m, xerox, stanley black and decker, harl harley-davids harley-davidson, raytheon, look at corning didn't provide any

the nextg ten fund will be qqqj bob pisani joins us with the head of the etf bob hoffman. >> julia, success nasdaq 100 etf, the qqqs has become a monster etf trader. the fifth largest etf out there. consistently very high volume every day used regularly by the momentum and growth people john hoffman joining us now. i know tech and growth is hot now. what prompted the move to do this this is the nasdaq 101-200 this has been a big success. this looks like the 101, the junior varsity qqqs. why now? >> yeah, bob the j is for junior. and, look, innovation has never been so important. it couldn't be more front and center you know, during a pandemic when we all had to experience and create and build during this period look, innovation drives growth and that is persistence. and the qqq as you talk about, bob, has delivered growth for 21 consecutive years. we're expanding on that now. providing investors more ways to simplify the investment and growth and innovation. that's what this is all about, bob. >> you know, i notice that it's got some usual tech names there. it also has garmin here, lyft. th

to bob pisani for more on that bob. >> and, kelly, we're near the highs for the day but there are re-opening worries out there if you look at the markets you can see that's all the travel stocks are weak again so the airlines, expedia, weak, even work from home stuff like ebay, salesforce, same thing mastercard and visa and american express have been essentially down all week. megacap down today they're up for the week but only up on monday other than that all the megacaps down, tuesday, wednesday and thursday what's the problem it's what's moving markets the bucks we always talk about stimulus hopes are diming there. the re-opening, we have restrictions in the u.s. and europe all right, not a lockdown but restrictions earnings are improving and kelly is right that's a good story but a problem there. 41 companies are out there right now reporting earnings that's about 8%. 85% are beating expectations put up the next full screen there and you'll see and the beat is almost 30% that is huge normally you beat by 3% to 5%. that's enormous. the problem, we are seeing third quarter numbers better,

that suggests to me there's a little more concern about the stimulus program getting inactive >> bob pisani joining us this hour speaker pelosi says stimulus talks are at an impasse. hi ylan. >> democrats are using the fight over the supreme court to attack onstimulus democrats repeatedly accuse republicans of trying to ram through her nomination at the expense of public health here's vice presidential nominee kamala harris. >> senate republicans have made it crystal clear that rushing a supreme court nomination is more important than helping and supporting the american people who are suffering from a deadly pandemic and a devastating economic crisis. >> harris even got into a sort of twitter beef with gop senator ted cruz who pointed the finger back at democrats who filibustered hundreds of billions in kocovid relief even president trump said today republicans should speed through these confirmation hearings to focus instead on stimulus. we're not getting exactly the kind of unified message we need to get this over the finish line before the election. back over to you >> it seems like the

bob pisani has more. >> we're at the lows for the day. stimulus is the most important thing. part of the market believes it's still coming today and the other part isn't quite so sure on the reopening stuff that would be most directly affected by stimulus, travel and leisure stuff, airlines having a good day and a lot of retailers are up, like gap, for example, all having a good day. that sounds pretty optimistic. other groups associated with reopening, like some of the industrial names andthe material stocks, federal express, kansas city southern, all up, a paccar and others up, ford like vornado, and even the residential ones, like beiequity residentials we're going into a good earning season overall. the beats on banks last week didn't make a big difference i think the bad news is and ylan touched on this, a little complacency out there. the market believes a vaccine is coming sooner or later oops, stimulus is coming sooner or later and stimulus is the bridge to the vaccine, therefore everything is great. given the high prices we're dealing with now, 1.5% from historic hig

bob pisani is taking a closer look at what is driving the move lower. >> concerns about stimulus we talked wilf, earlier today about complacency in the market around stimulus it is starting to show up the concern we had look at the s&p 500. final. at 1:30 we dropped below the lows of the day. we dropped a little over 1:30 eastern time then an hour ago we dropped more notably. there were reports out all of them confirmed that a stimulus deal was not imminent. nancy pelosi and steven mnuchin aretalking but we have no idea when the report will be out. stocks sensitive to stimulus, home stocks, mohawk drifted lower there. less money to buy home furnishings with no stimulus retailers dropped firly quickly. ross stores, of course a discounter i would note a few things about this these have been drifting lower in the last few days we just moved lower on this discussion today, but ross stores was almost $100 a few days ago look at it there, $91. drifting lower e-bay some story on some of these stocks yes, lower on stimulus concerns. e-bay was close to $59 a few days ago here you see, $54. almost a

. >> all right, guys s&p 3466, holding on to levels best since september 4th to bob pisani. >> we had week, carl again today, almost 5 to 1 advancing to declining stocks. that's very good considering fairly modest open up about 18 on the s&p 500 look at the sectors, once again, this modest cyclical rally very evident. energy was up at the open, but nose-dived quickly we got the hurricane in the gulf, oil is down today. but banks, materials, industrials, particularly industrials really the stars, tech has been lagging all week the semis are up this morning on the amd and xilinx chatter if you look at the industrials, the big story is this plethora of new highs we have been hitting throughout the week and again today. six, seven, eight of them, illinois tool works, eat on, caterpillar, deere, fedex, all big names here, not a phenomenon that is two or three days, this has a little bit of legs rallies tended to fail in the cyclicals this year. if you look at the industrials in september, with the s&p up 3%, fedex up 8%, american airlines, nice moves on all the airlines up 6%, 7% on the mo

. >> bob pisani. thank you. let's get to the very latest on whether the stimulus bill can get done ylan moi has been tracking every twist and turn in the negotiations where did we stand. >> nancy pelosi said she spoke to the treasury secretary half an hour this afternoon and that the white house did attempt to address some of democrats' concerns however she said that there is no agreement on a strategic plan to crush the virus she also said the democrats are still waiting on specific language from the administration and still negotiating that top line number. a source tells me that the treasury secretary afterward a $1.8 trillion proposal but earlier this afternoon president trump told rush limbaugh that he wants to do an even bigger package than what democrats or republicans are offering and that he is going in the exact opposite direction from where he was earlier this week when he shut down the talks. meanwhile in kentucky mitch mcconnell warned theres not gob to be spaddy passage of any deal if and when ther

. ♪ ♪ >>> welcome back bob pisani here.lows for today, dow jones industrial average down about 800 points. joining me the professor of economics at princeton university professor, thank you for joining us today you pioneered the idea that stocks tend to follow a random walk but the markets seem to be reacting today very much to stimulus or the lack thereof what should an investor be doing right now? >> in terms of a random walk, the idea is that the market moves on news and true news is something that you can't predict from the past. so the fact that we are now running toward a new peak in coronavirus deaths and not so much deaths as basically diagnoses and this was perhaps not anticipated, that's what makes markets move and i don't think you can predict this, and i don't think that it's possible to do that. what we know is that eventually we're going to have treatments, we're going to have a vaccine, eventually we are going to have stimulus maybe not before the election, maybe not before even a new administration, but it w

let's get to bob pisani for more on some of the big movers and drivers of the day bob?sara, it was like mass psychosis, everything dropped at the same time by the same amount everything bottomed at the same time and came off only modestly. big day, bad day for the restaurants. darden and all the strants were poor here. sideways part of the morning to 130. everything bottomed. at 106 three weeks ago caterpillar was essentially straight down until 1:30 all the charts lock alike. caterpillar here, then the stock rose modestly. same chart there oil subtraction, chevron down until 1:30 tried to stabilize modest move off the bottom same chart essentially apple made it into positive territory. it is still on a down trend. it was $125 a couple of weeks ago. s.a.p., a big software company expecting a fresh wave of lockdowns to hurt demand through the first half of 2021 here's the debate -- was this a macro earnings call for the sector or was it a subpoena specific call? the market reacted like it was a macro earnings call. it is one of the reasons we had a problem today. bob pis

bob pisani has more on what we're seeing here. >> in fact, we're at the highs for the day. we're on light volume again. the volume tends to be lighter on up days than down days recently that's a sign the pain trade is to the downside. sectors tends to be the cyclical names here banks, industrials, materials doing well techs also doing well. the defensive names like consumer staples you can see utilities are all lagging. the overall trend this month and the last week or so, slight outperformance by cyclicals. we are hitting industrials with new highs. some nice moves. deer at a my high, u.p.s., eaton at a new high, cummins at a new high there's hope around rotations going into the cyclical center travel and leisure stock stronger they can't figure out if there's going to be stimulus or not. right now they're on the hoping side there's the travel and leisure all to the upside. as for the idea we'll get the cyclical rotation, it hasn't happened in any appreciable way. even today, the russell 2000 small caps doing about as well as the big cap s&p 500 value has been doing about

progress lately, the dow erasing a 170-point drop after positive comments from speaker nancy pelosi bob pisani has more on the markets for us >> what's more stimulus worth? not a lot. speaker pelosi was optimistic. and from that we moved from flat into essentially positive territory but that's only about 20 points. the market has heard this story a while and i think it's getting skeptical here what's moving the market is stimulus increasingly vaccine is showing up as an issue here. third quarter earnings have been outstand being bing but that's t moving the market so much. stimulus is one issue. but there's also vaccine complacency. the issue for markets and vaccine is that the vaccine will not be a light switch event that's suddenly back in april or may, all of a sudden we're going to get a vaccine and we're all going to be back in movie theaters it's going to be much more discontinuous than that, we would have low efficacy rates that would delay it, skepticism, the logistics of getting it out may delay the recovery and that would put off economic recovery much further into '20, '21 the marke

bob pisani has the latest on the moves. >> do we have a stimulus pamann pacqui pacquiao -- package? no do we have an s&p package? no the market believes the market will hold up well. we have new highs on target and costco and l-brands, believe it or not ande etsy has hit new highs recently fedex, some of the shippers, these are big global industrial companies that are continuing to hold up on hose thpes we're goio eventually come out of this. i want to show you the industrials, xli here, that tells you the cyclical rally has some legs receipt now. this hasn't lasted often i don't want to go over my skis on this but u.s. bank corp, highest levels, that's quite a move we're seeing we go all the way back to the earlier part of the year to see levels higher th than that. so good news hopes for stimulus, six days after morgan stanley bought etrade, a deal. and eaton vance, other names, invesco doing well today these are financial services under a lot of pressure recently, losing assets under management the key point here is, number one, etfs lower fees generally for these companies. they

. ♪ >>> bob pisani with the etf portion of our show. amazon prime day plays tomorrow. all over that story. simeon, you have two big retail etfs that have been killing it this year, the pro shares long online short stores, clix, the etf there up 82%, long online, huge outperformance and you're short brick and mother tartar is that going to continue to run? >> if you look at q2, this takes preem by surpri people by surprise only 16% of retail shares were online number two, the pan ddemic accelerate that 16 was up from 11 but likely to be sticky. think about a quadrupling penetration in the lagger, groceries and in folks likes chewy, 70% prescription, ore or etsy, at 50% of their sales kale from ma came from masks. you look at walmart. their reward has been shrinking margins while amazon's have doubled. the fundamentals point to the online folks if you see acceleration and performance like that, you worry about valuation. if you look at the relative valuation of our online basket, the pro shares online retail baskets and compare it that to the tech sector, we're trading a

as bob pisani mentioned no earnings estimates for u.p.s., but another quarter of margin pressure sharesown more than 8.5% back to you. >> thanks so much for that, frank. heading into the final 20 minutes or so of trade, let's bring in liz ann sonders from charles schwab thank you so much for joining us good to see you, as always there's quite a few reasons out there for why we're selling off. which stand out most of all for you? >> there are more catalysts than causes maybe that's just an exercise in semantics. one of the underlying problems that established the situation where we see a resurgence in cases, stimulus package being passed pre-election is that as the market is doing well, it was accompanied by speculation certainly by the cohort of day traders. you were seeing that in the options market in many cases across fundamentals that sentiment environment sets up the possibility that causes a reversal in some of those recent trends and as you suggested, wilf, we have plenty of recent catalysts. >> liz ann, how much of this, do you think, is the fact that the election is next week a

bob pisani joins us with the very latest on these market moves. >> we have regained about 25% of the losses we had yesterday. that's not great but ought least we're moving in the right direction for the bulls. let's take a look at the sectors. what you see today is what we call the sick be lick cal groups there's the dow industrials. we're not far from the highs of the day. the sector, tech up well ahead of some big earnings, industrials. there's your cyclical sector and your more defensive groups, consumer goods and staples down a little more. a little what we call risk-on for the markets. what i see in investing continue with the thematic tech investors like the solar etfs or some of the game etfs. wind power, lithium batteries, l.i.t. is always big these have attracted a rot of investor interest and new dollars. every day i see them up, a little more money goes into them as for the hopes for the earnings, a lot of people hope apple, amazon and facebook change the earnings conversation when they report tonight i'm not sure about that. ebay had great numbers, excellent fourth quaurd

now, 25% of the s&p 500 reporting, earnings down 17% from year ago, revenues down3.7% let's go to bob pisani >> the dow is outperforming the s&p today. by and large earnings are coming in much better than anticipated, although they're down 17% from a year ago look at the earnings situation amex and intel are down. but we've had some big beats here, cleveland-cliffs, illinois tool, capital one killed it. the prices aren't moving it's been the way all throughout the earnings season so far if you look at the numbers, we've had a quarter of the companies reporting here they've beat i don't knen by av numbers. these are big numbers, way bigger than you normally get and yet the prices aren't moving that much. look at the s&p 500. we topped out the day before earnings season started on october 12th and since that, it's been essentially slightly down to side ways. we're not getting a lot of juice out of the earnings, even though the numbers are better than expected even among those reporting, price gains are minimal. if you miss, heaven help you, you could be down 3 or 4%. some of these big companie

let's get to bob pisani for more >> let me show you the s&p 500 we were flat-ish until about 11:30, 11:40 eastern time. that's when secretary mnuchin made his comments that it will be difficult to get a stimulus bill done before the election. you see them drifting into negative territory there were some problems even before that. not surprisingly, stimulus sensitive stocks, auto stocks like ford and gm, some of your retailers, for example, moved down they were mostly trading to the upside but interestingly, even other sectors like work-from-home beneficiaries that are a little less sensitive to the stimulus talk, all dropped as well. so lowe's, target, ebay, they all moved into negative territory. not much, but they were positive on the day and then also even the big momentum names, the mega cap momentum names, apple, facebook, microsoft, alphabet all moved into negative territory quickly. in other words, the overall market moved down, not just stimulus sensitive stocks. as for the earnings, the good news is this, going into earning season we had two dozen companies, including fedex, h

. >>> welcome back bob pisani here with the etf edge portion of our show our guest today is tom lydon paul delaquilla. the spac boom is the big story of the summer. paul, you launched that a couple of weeks ago, how does it own spacs when for the most cases we don't know what the company will be owning for two years. >> great question. thanks for having me on the show i think that's part of the appeal what we did with spak, it launched on october 1st, we're giving preipo spacs in addition to doing a deal and post-ipo spacs that have merged those companies that have already ipo'd like a draftkings for instance >> i want to talk about the ipo bizusines business that's also on fire. the ipo etf is up almost 200% since the march bottom it's just shy of a historic high right ow all of them seem to be working this year. do you anties pacipate it going higher by the end of the year? >> the number of companies going public are a third of what we saw 10, 20 years ago so this pent-up demand and instituting the spac program is helpful. however it's diversification if you look at the spac etf, on

bob pisani is here with the latest market moves. bob? >> and we have a surge in covid cases. no stimulus and the possibility that fourth quarter earnings are in particularly. that's the essence of the sap warning here this morning. let's take a look at sectors, predictably cyclical sectors energy, saw oil down 3% at one point, banks, industrials all weak tech as well more defensive sectors like utilities, for example, and consumer staples down but not as much software has been under pressure all day. you heard about sap essentially cutting its revenue forecast for the full year. they are expecting a fresh wave of lockdowns over in europe to hurt demand for the first half of 2021. is this company specific or not? this is a threat to fourth quarter earnings in general even though parts of it may be company specific you can see software stocks that are down, travel and leer you're, opening stories going rather poorly. you can see the decline usual reit stocks, real estate v.stocks like sld. energy weak. a non-poor performer any time you see any threat to the reopening story. ban

we appreciate it bob pisani dow's down 233 dom, great to have you along, especially on a day like this. walking us through everything. dom chu. that's it for "power lunch," everybody. we'll hand it off to "closing bell" to pick up this fast-developing story. see you tomorrow >> kelly and dom, thanks so much for that welcome to "the closing bell," everyone i'm wilfried frost with sarah eisen. the president just tweeting "i've instructed my representatives to stop noerk until after the election." whether that is a ploy or not, sarah, the market is selling off. we're down the best part of 1% on all three of the major averages a sharp turnaround of course from what had been a possession. a possession, sarah, that had been led by the cyclicals. so many of the sectors in the stocks that were buoyed specifically by the hopes of stimulus >> and higher bonld yields as well which reversed and went the other way. dow's down almost 300 points is this art of the deal or do traders really need to pare back their bets over stimulus let's get right to maike santol for the market reaction. what stands

the former chairman joins our bob pisani in his first appearance since it was signed. >> we're talkingthe chairman of ameritrade and now the former chairman joe, congratulations the deal closed yesterday. i imagine this is a bittersweet day for you. it's a great merger, a great deal, there's great synergy, but a great name that you've led is going away how do you feel about the synergies for this deal? how do you feel about other potential consolidation in the financial services industry? nelson pelts is getting involved saying there should be more consolidation. how do you feel about that >> i feel like the bottom line is i'm a little sad our name is going away, but having said that, i have tremendous confidence in the entire team, as well as chuck, in terms of being able to realize the synergies which are going to be considerable if we get a little help from the market, the schwab going forward could very well be a $100 billion market cap we'll already have $5.5 trillion in assets. when i began 19 years ago our market cap was $700 million. i'm a little sad, but i couldn't be prouder

with the stimulus talks still uncertain could earnings be the next positive catalyst for market bob pisani joins us now with what we can expect as third-quarter earnings kick off. we've got super tuesday for the banks tomorrow, bob? >> reporter: yes, indeed good to see you, old friend. always a pleasure. important thing here is good and bad news on earnings the good news is we've got overall earnings aren't as bad as a lot of people anticipate. if you just take a look at what's going on here, we started the quarter with earnings expected to be down 25%. now it's only down about 20% that's still pretty awful, folks, but normally earnings estimates tend to go down, not go up in a quarter because the analysts are too optimistic. that hasn't been the case. that's a good sign another good sign. the early reporters for the third quarters have been doing much better than expected. we had 22 companies reporting as of friday. 206 them had beat expectations and the beat, 25%, that's way above normal usually they beat 3% to 6% and the fourth-quarter numbers for most of those companies reporting has b

back to you. >> all right, thank you very much, bob pisani sports, we have some reports of additionalyers on the patriots and titans with illness. we'll watch that let's get to santelli. good morning, rick >> good morning, carl. yesterday everybody was talking about the rates and it dissipated when the president's tweet hit the markets regarding stimulus and the dealing being off the table. maybe that isn't true as we learned today. nonetheless, it really took a toll, whether on equities or on treasury yields. they came back and that really is important look at a chart starting on friday of ten-year note yields, low to high was up 12 basis points and we're retaking the ground from yesterday's high yields, both on tens and 30s if you open the chart up, to august, you can see the lows there, at 50 basis points, lowest close ever for 10s. the point is we now almost have a 30 basis point cushion it is the biggest cushion and it does take away a little nervousness where many traders become trigger happy as you get close to all time lows, they don't want to be stuck on the wrong side of the

to bob pisani. hey, bob. >> carl, happy wednesday, everybody.n today, 3 to 20 advaned advancing to declining stocks. oil is creeping back up again. that's helping energy out. the banks are mixed, mixed reporting there. industrials okay materials, healthcare on the downside that's mixed here. all over the place, goldman had a big beat on the earnings, just top line, bank of america was about inline, pnc and u.s. bancorp, i love watching the super regionals, they had good numbers overall here the other one we like is wells fargo, moving parts there. interest margin on the light side big mortgage division all over the place. i want to show you here about just generally what we know about the banks so far with mostly earnings beat and lower credit provisions, it is hard to move the stocks forward here the credits are lower. the deposits are increasing. but the big question is if you don't have a trading operation, how do you make money? you get long growth, foursquarefoursquare that is fairly tepid or maybe fees, you can get them up slightly for som

s&p back to 3428 interesting in terms of levels to bob pisani. bob?and one month high on the s&p. and another decent start to the day. not a huge pop up, but we had 7-1 advancing to declining stocks at the open that's what you want to see. equal quiet, s&p 500, outperforming. the big cap s&p 500, the market cap s&p 500, take a look at sectors. we continue to get this belief that there is going to be some kind of modest cyclical rally. this has been going on for a few days now materials, energy, banks, doing a little bit better. tech holding up okay more defensive sectors utilities and consumer staples, generally have been lagging the markets here there is this sort of hope out there about some post election stimulus a lot of people think that it is a little bit illusory but they're buying into the idea here there may not be a stimulus package that is going to happen, but the street believes something is going to happen with an a la carte item, airlines up another 2% or so, united and that whole crowd up there, nicely, and this is part of a mini rally

to bob pisani. bob >> tough morning, 10 to 1 declining to advancing stock at the open nothing really working now, we're off the lows, look at sectors, you say nothing is working, you get semiconductors not moving with the cyclicals, like energy and industrials, banks still not doing anything even though the bank earnings have been great except for wells fargo, consumer staples, defensive sectors like healthcare not doing much. the reopening stocks all down. everything is down so the reopening stuff, travel stocks like the airlines are weak, the energy stocks are weak materials and steal stocks like nucor. nothing is really working today here normally you flee the megacap, that's the knee jerk reaction when you don't get great news on the vaccine or reopening story these stocks held up tremendously in the last month and really in the last year. so nothing is working today here so, remember, let's remind ourselves what moves the market. so stimulus, let's call it dimming hopes, that's kind, frankly. b

along with our own bob pisani. >> you've been pretty resolute that q 3 earnings are fine but markets are really indicated on stimulus and the larger vaccine the larger view treating it as binary event >> viewing it like someone is switching on a light and we'll be getting back to restaurants and bars and movie theaters. i'm not certain that is the case we have the flu vaccine which is not exactly the same thing its efficacy is not great and varies from year to year the other thing is that along with it, the market could justify the prices we are looking at would need better treatment. something to leave the virus a lot less lethal. it would also be as good as the vaccine and a combination of the two would be helpful the markets are overestimating the effects of the vaccine >> i share your concerns the reason, the markets seem to believe that if you look at the earnings estimates, that's only a quarter away, the numbers are reflecting the belief there will be a major reopening starting in the first quarter and secon

. >> let's get to bob pisani and get a take on the broader market good morning, bob. >> good morning. monday four straight days up in the s&p 500. we moved 150 points in the s&p in four days we're now 75 points or so from the old high that was early september. got a little bit of a gradual melt up. last week on cyclicals and today on the old-fashioned mega caps let's take a look at the markets that are moving here and the sectors that are moving. i just want to note china the broadest china etf a new high for that china has been on a tear in the last few weeks tech also strong today and consumer discretionary remember last week we saw the cyclical names like industrials and banks rallying this week more favoring towards the other areas here like tech and the old school industry names here if you look at some of the mega caps after that. just want to show that and put that up in the reopening stocks, too. airlines are a little weaker you see that last week they were doing well industrials were doing well. textron, 3m, honeywell these things tend to do better when the stimulus is doing

oil, again, leading, sector up 2% to bob pisani. good morning, bob. >> good morning, guys.esday. nice start to the day. 5 to 1 advancing to declining stocks modest move in the s&p it didn't look that strong the ad line really looking good these days down to about 3 to 1 as we open a few days and as carl mentioned, energy leading nicely here, banks, these are all associated with cyclicals,/reopening to a certain extent materials great month in september. industrials strong and tech is lagging. if you look at the megacaps, obvious reason for this, the u.s. -- release of a u.s. house antitrust report here that was negative on big tech and alying more investigations are coming you see modest declines here i don't think that's the really big issue here i think the reagan rel big issu the markets is the stimulus package and what is going on with that. they're starting to get concern here christine lagarde was out this morning saying there is a second arm to the recovery in europe, meaning the v recovery that we're having is turning into a w because of the second wave that we're s