still with us is benjamin segal and gina martin adams -- gina marti. we have this new volatility regime, and the overseas impacts we have a shrug off, overseas concerns, seem to be affecting us daily. benjamin: i think the world is economically connected. scarlet: it did not feel like it's a month ago. benjamin: that is true. we tend to forget about these things from time to time. hastrump administration talked a lot about trade and getting better deals. the europeans as wells the chinese have found themselves on the wrong end of that rhetoric. thatnk we are recognizing there are domestic implications in the u.s. and europe which is kind of the innocent bystander between china and the u.s.. they are relatively unscathed in this environment. you are also seeing wage pressures in north america. you talk about weakness in emerging markets and the european economies have been sluggish. they do not see wage growth. this environment of volatility, we see attractive opportunity in europe in particular. caroline: we will come back to that in a moment given the

joining us now is gina martin adams.f selling for the likes of caterpillar and 3m is it panic or warranted? panic.ink a lot of it is we mentioned in environment over the last month in which several tributes have been reached. of thoseare one triggers. expectations for margins have led to equity market corrections in 2011 as well as 2015. expectations for margins peaked again this summer and started to get downward momentum over the last month. i think that's showing up in the earnings releases. a lot of companies are guiding analysts to expect less market growth going forward. would say we were in a process of every pricing our earnings index.tion for the and that's contributing to overall weakness. which started about a month ago but is accelerating into earnings. it's got to be exposure to the global markets. is this companies with international exposure feeling of the most? >> in most cases it is. it's not entirely about the international story. basically every cyclical sector has produced a downward momentum to earni

scarlet: still with us is scott of guggenheim and a gina martin adams. we are waiting earnings any moment. scott, when you look at the different earnings coming out, is there anything that catches your eye and gives you confidence in the recession call? scott: i think some of the early warning we see from caterpillar -- tariffs might beginning to bite -- be beginning to bite and everything is not rosy. scarlet: i have to jump in. we have microsoft reporting earnings. the first quarter eps is $1.14 topping estimates of $.96. revenue is better than anticipated at $29.1 billion. analysts were looking at $27.92 billion. it be to on the top line and bottom line. the first order revenue beat the highest estimates as well. of thes no indication second quarter outlook, but capex is just shy of what analysts are looking for. actually, more than just shy. caroline: we give a look on the cloud progress of the business and how it continues. this is a beat across the board. markets are reacting. this is the story of the markets. look at these great reports. in the ga

vonnie: gina martin adams told us investors may be getting for too much. they have so much over the last several quarters. the manufacturing index came in at 15 today. it was only at 16 a year ago. we shouldn't read too much negative into this. are we just looking for too much? >> i think that's right. it's about a recalibration of expectations. people underestimate how much impact that would have on the equity market. it was quite clear that this year would be the peak in growth. it just means we are coming off the peak. there's less support for the equity market. of there is that kind recalibration and slight risk aversion. that doesn't mean we need to go into panic mode or bear market mode. it just means more volatile markets. it just means the press will not be easy. about the talk question of the day. it's about whether chinese stocks have found the bottom. let's play some of the sound we have been collecting throughout the day. >> certainly they will try to take some of the steam out as we see these markets going lower. will depend on the other more

. >> our thanks to gina martin adams, thank you so much. peter, you're staying with us. i want your thoughts on the state of the consumer. you like to look at visa gauge of where the consumer is and so far it's up.ing peter: those stocks have been monsters and i want to thank whoever is participating in those markets because it's kept me out of a lot of trouble because intellectually, as you negative onaid, i'm the market but it's a disciplined approach. we like to say price makes news, andthe other way around those stocks are indicating that right now the consumer is ok. now, do they sell off, is the high in crude reflective of lesser demand? haven't seen it yet. they maze -- may do highs. as of yesterday, they were down fractionally today. to discipline and listening to those two stocks. >> maybe we should listen to well.er names, as investors and insiders have been pepsi possibly considering a move into the cannabis business but were disappointed after the company's c.e.o., hugh johnson, shot don johnson, shot don speculation during a call with investors. >> anything

amanda: we have gina martin adams and mike regan. it's good to have both of you.you believe the catalyst is for those this concern about earnings? at some point record profit earnings will have to reseed? have we seen it? >> i think part of the correction is due to her earnings and margins forecast which started falling in the summer, and started to catch a greater pace of acceleration over the last month, companies are starting to expect slower earning growth going forward. i think to say peak earnings is a misnomer. isbe peak earnings growth what we have seen and we are likely to see a deceleration from here. me isof the correction to about investors reassessing their outlook for profit, and considering less margin than was put in the forecast three months ago. amanda mentioned this earlier, we were lower earlier in the session, down 2%. why the sudden recovery? and we are still not their area, we are still down. exactly for to say sure. one thing that really created caterpillar earnings in the 3m earnings caused a big wave with selling futures. and the italy he

gina martin adams who broke down -- numbers and in the schism and denise chisholm.y and the latest production numbers are keeping the rally running. a big change from what we saw last week. more on what i am watching, next. go to gtv and look at the charts we have used and save it for reference. this is "bloomberg." alix: tesla takes a sigh of relief. no doubt you are watching it. more thany delivered 53,000 model three vehicles in the third quarter, the stock inching into positive territory after a rally. of $300. price target walk me through the numbers we got. what do you think. , a littleeliveries over 83,000. our estimate was around 80,000. the model three came in at 56,000 which is better than postedus and they also solid results further model s and ask vehicles. is this sustainable? could they increase it? romit: they are sustainable. i would expect deliveries continue to increase in the fourth quarter and into next year. they have not started leasing the model three which is how most consumers prefer to finance their car. they have not started shipping

we are joined by gina martin adams and marty schenker. seems like every quarter over the last couple of years, we are talking about stick, but now we are talking about core alone growth with positive consumer. think this has been a progression of quarterly events for the financials. particularly for the big banks. it's about topline growth, performance for these companies for one year running, it's about topline. frankly, so far on this scale they have been rather uninspiring. waiting for financials to sort of take the leadership as tech breaks down here and we get a bit of value leadership that becomes naturally partial to financials with the yield curve suddenly becoming more upward sloping and we are not think it for a number of reasons. rates heading higher constrains the mortgage portfolios but at the same time you are not getting the sea and i loan growth to offset mortgage and at that part of the cycle we should start to see that and we haven't seen it so far this season. david: at the same time, the strategy seems to be no drama.