mike santelli editionnto that. >> stock market hit tushlens in october with daily swings at least 1% in the five of e past seven days and the sharpest drop in eight months. is this another test of the market resil yaens of the first phase of a tail spin into a doob deeper correction of the sort investors endured early in the year appear before that in late 2015. traders are dissecting the day to die magi rations for clues.

mike santelli with the new york stock exchang to try and explain the selloff. good evening, mike. what a day. >> it sure was, sue. you know it's amazing. over the course of the month it's been an accumulation of factors that became very acute in the last couple of days specically around big compa earnings. i think investors have been sensitive to the possibility ngthat ear growth is slowing into next year and getting some ial ence from global indus companies that maybe that's happening and at the same time i think there is a little bit of wariness the federal reserve will continue raising rates at a paceht that m feel uncomfortable given the potential for slowing. to me that came together with the acceleration of downside momentum today. >> and that downside momentum, ke, has been occurring as we re-test recent lows. we blew through yesterday's low today and that'he when selling took off late in the afternoon, right. >> absolute willy, bill. it was basically technically driven in that sense. a lot of investors trars ying okay if we manage to hold around yesterday's lows which were

mike santelli looks at howet th maompares to the last time th market hit a top more than a decade ago. >> reporter: this weeks marks 11 years since the sto market peaked ahead of the great recession and global financial crisis which ultimately would send the market to a 50% loss. it was a time that resembled our own in a few broad features of the economy and market. unemployment was roe. oil prices on the rise. the fed had been raising interest rat a few years. and stocks were at record highs. these parallels have somein stors wondering whether it's time to brace for an on coming end to the economic expansion and more difficult financial rket. for sure the kpk cycle seems to have entered a later phase now. but the differences between today and 2007 seem more relevant than the broad similarities. and suggest the outlook now is more encouraging. it's crucial to noterhat by octo 2007, the housing market was more than a year past the peak and piles of mortgage debt had already begun to sour. spreading losses throughout the global banki system. credit markets began snling a build up in str

. >>> now with all of the selling we asked mike santelli to look for clues about when the downrd pressure mig ease up. here is what he found. >> after a sharp a jarring market drop. investors searched the damage and searched for signs of stability. and the process is under way following the big tumble since february. the damage h been swift and pervasive and the downside momentum hasn't let u traders note the market is oversold which means the indexes are stretched far below theirre recent. along with the fact that the downmajority of stocks a 10 percent from the high in a short time this ultimately fits the stage for a bounce as a technical matter. but selloffs can feed as traders seek shelt frere a treacherous market action. one indication is the volatility index, a msure of how urgently they are buying option attention pl surging to the high 20s this week andte ele level. but while the low extremes reached in february that marke theorrection low. veteran traders like to see this volatility mretreat f peak over the course of a trading session, often a sign the market is calming. investo

not necessarily a trend to worry about at least not yet for nightly business, i'm mike santelli. >>> by the way, thatomositive ec news that sue alouded to came from the rip roaring labor market. the private payroll company says that employers added 230,000io more pos in september, well ahead of expectations. job gains werepread acros industries with the services sector leading the way and as big increases came despite disruptions that were expected from hurcecane flor on friday, of course, the government will issue its own monthly employment report. >>> the u.s. economy is set to look good quote for some time. that's the outlook fro the president of the chicago fed who expressed optimism ove the job market and inflation. >> fundamentals are very stront labor mar is doing terrific. unemployment is below is, which really something. payroll employment has been over 200,00per month for many months, which is really really good showing. and inflation is up to 2%. i spent quite a long time indicating that i think inflation needs to get up to 2%. and here we are. >> and while mr. evans is mf

mike santelli editionnto that. >> stock market hit tushlens in october with daily swings at least 1% in the five of e past seven days and the sharpest drop in eight months. is this another test of the market resil yaens of the first phase of a tail spin into a doob deeper correction of the sort investors endured early in the year appear before that in late 2015. traders are dissecting the day to die magi rations for clues. the foe for the moment the market lows set a week ago ob the s&p 500, down 7 from the record highonf a m ago held up and the jumpy rallies and lloffs followed a typical of a market trying to steady after a swift setback. longtime wall street wisdom says the bottom is re-tested over days and weeks to see if hunters step in again. this is the the pattern unfolding between february and air april of thi year. the optistic takes on the recent action sates a choppy adjust to higher interest rates global market weakness and the flagging leadership of big steak stocks rather than the stirring of the draft downturn. earnings are coming through strong for add third quarter.

almost 10% today we are watching that mike santelli is back with what the afternoon might bring, alongcebook earnings one thin that struck me is consumer confidence. people are not rattled yet about rising rates or declining stocks. >> nope. that's not going to be a leading indicator but it would be coincident with the economy feeling softer with the stock market people really taking it to heart the levels we are at in the s&p 500 we hirs first hit them in the history of humanity around thanksgiving last year you are still working with 11 months worth of a round trip and not necessarily cutting into muscle yet. >> that puts it in perspective there are data points being circulated that we see a big selloff, a pullback in stocks this month that you tend to see in end of the month rallies and repositions. >> we are down 18 of 24 days in this month not two days up in a row you are kind of sold out for the short-term and the end of the month. you have all of these mechanics. we talk about earnings, they are going to matter and take hold as a driver some day. right now it is the market react

mike santelli for a rare "fast money" appearance in the flesh. >> why do we deserve this. >> don't you voted onto the desk. >> like survivor. >> yeah. >> but the paradox in the market the assets market stocks haven't been great i know larry feng even for a dominant franchise was talking about the chals this morning >> we saw huge movement from clients, a lot of churn. and it was just i think the markets are showing that that investors are confused. but overall because expense discipline, because of how we navigated, our revenues up 18% in our aladen business and technology business. overall it was a good quarter. but what i was disappointed in the net flows. but very explainable by some large derisking. >> yeah, and floats are not frustrate across the industry. that's one of the foovgts that has been hurting the group obviously the global markets have been weak it's not as if everybody is at record highs in the last month but fee pressure, right? and blackrock is part of an instrument of that but people don't see the end of that if you look at stocks year to date you'd never think a u.

. >> the first while big technology remains under pressure overall a terrible month mike santelli isecnghe charts on the telestrator, coming up let's begin. yes or no? do you want the same tools and seamless experience across web and tablet? do you want $4.95 commissions for stocks, $0.50 options contracts? $1.50 futures contracts? what about a dedicated service team of trading specialists? did you say yes? good, then it's time for power e*trade. the platform, price and service that gives you the edge you need. looks like we have a couple seconds left. let's do some card twirling twirling cards e*trade. the original place to invest online. your company is and the decisions you make have far reaching implications. the right relationship with a corporate bank who understands your industry and your world can help you make well informed choices and stay ahead of opportunities. pnc brings you the resources of one of the nation's largest banks, and a local approach with a focus on customized insights. so you and your company are ready for today. >>> former fed chair janet yellen weighing i

stocks near record highs high are asset managers at multiyear lows mike santelli taking a look argumentsarkets group mutual fund managers and companies like blackrock, t. rowe price, making highs along with it but profoundly underperformed the kce. this is an s&p sector etf that tracks all capital markets in addition to the big asset managers it has investment banks, some of the exchanges in there, but 10% below its high. vastly underperformed you see there. s&p this year. look at just the asset managers within it, it's been a much worse story. invesco down. franklin resources what's going on? move to passive investing is not necessarily benefiting this industry flows weak fees have been compressed. that's obviously what's going on also global markets have been weak i think the market is viewing this group as a disrupted industry it's not necessarily one that has leverage to the overall market picture they look cheap now. all of these stocks look very cheap. kind of multidecade lows for some of them in terms of valuations, relative to asset levels and earnings. a question whether it's a

mike santelli joins us with that hi, mike. >> it is hard to know if there is actually one threshold level of bond yields that is going to make investors feel as if that is worthy of pivoting away from stocks into bonds. it is much more of a continuum one thing you can say with this lift in bond yields is that, there was a saying that stocks are the new bonds, if you want a yield, you had to buy stocks and collect dividends. right now, treasury securities all the way down to one month exceed the yield, the dividend yield on the s&p 500 that story is no longer the case bonds are the new bonds. the idea that 3.2% is going to create a wholesale shift, i don't think it makes a lot of sense. it depends on somebody's expectations for equity returns in the coming ten years. a lot of models with valuations where they are, say maybe we're good for mid to high single digit s&p 500 returns, total returns including dividends. that would be maybe an optimistic case. in that case, maybe 3.2% for a safe, you know, income where you're not risking your principle is going to start to look good. i personally

i'm mike santelli this is trading nation consumer staples on a hot streak tracking for the best week011 proctor & gamble, phillip morris and color ox surging on the week and leading the s&p. is this traditionally defensive group poised for bigger gains? our guests join us to talk about that mark, obviously the stocks perked up. today proctor & gamble perked up suggesting there is power in household products is this a group staying in knave for a while do you think. >> i don't think so. i mean volatility has come back to the market in a big way with the big daily swings and shaking investor confidence a little bit. the s&p is about 5% off the all-time high. and you have seen higher multiple growth stocks pull back more than that and consumer staples are a defensive sector i view this mostly as a risk off move let's put things in perspective. consumer staples have a great week but down about 4% there is mean reversion happening a as well. look close at proctor & gamble and the organic sales up 4%, more than double what analysts expecting, that was driven by the beauty products up 7%. b

i'm mike santelli. with the dow surging to a fresh record high, let's take a look at some of the biggest blue chip winners. they are all surging to lead the dow. the broader index is up a little less than 4% so were any of these names still a buy? should investors look elsewhere? gina sanchez, mark newton are weighing in. m any setups looking attractive to you? >> exxon mobil to me looks very attractive here. the stock is part of the energy sector which has recently sprung back to life this rolling market of sector rotation is a must a lot of these energy stocks have underperformed even as crude has moved higher that seems to be changing dramatically of late exon just now this week is set to break out above almost a four year down trend coming from the middle part of 2014. so, you know, it's not at all time highs, but it's a better risk/reward in my view we saw today's crude had no effect on energy whatsoever. it looks like the momentum can carry this higher. it's a decent risk/reward because it's up ab

lower this downturn is clearly a global story that we're watching here i'm going to send it to mike santellithe new york stock exchange. >> thank you very much let's bring in our trading nation team for more on the emerging market and global meltdown today mark tepor, matt maley matt, i guess as a whole, how are they positioned? they've been drastically underperforming the u.s. any signs that might change? >> well, it could. at least on a short term basis we always like to pick up any asset class when it's been washed out it's over solvent. you look at it's weekly rsi chart. it's getting down to levels where you usually see balances. the problem is it's been seeing a series of lower lows for many months now so it's going to be tough for this thing to really bounce back, especially if we don't get a move on the dollar the inverse correlation with the dollar has been strong for a while. unless the dollar comes down and there aren't signs of that right now, it's going to be tough toorto be overly aggressive china, the one thing, it's down near key support level the chinese, they are known to su

>>> in the meantime, we have a big lineup for you today covering the markets from all angles, mike santellitom farley and our senior economics reporter steve liesman we're going to start all of this with dom dom, what are you watching? >> you guys have talked about the fact that we've seen pullbacks of this kind of nature in the past. just so far, just this year, we've seen a number of them, not to the degree we have. of course, we saw them in early part of february and march when we saw that big decline in the s&p 500. but for the most part, you can see with the trend line, we found bounce areas and we're waiting to see whether this area, this deep mover along the low-trend line really is an area that people can find a bounceable area. let's check outwhat else is moving in the markets because we have seen some of the internals. some of the, i guess, symptoms, if you will, perhaps, the environment that we're kind of in, that manifests itself in a broader base with the s&p 500. if you take a look at the s&p 500 stocks right now, 164 of them are above that long-term trend line. that 200-day m

. >> mike, i appreciate it as always mike santoli, i didn't get a chance to thank rick santelli as well we appreciate his voice in here. >>> we talked about semis on pace for their first day since june let's bring in bernstein's senioranalyst who is the numbe one ranked chip analyst by institutional investors. welcome to the program good to have you on. >> good to be here, thanks >> what's going on with the chips? >> yeah, you're right, it's been a tough couple of days the sector has been under some pressure we've been in a demand upcycle that has buoyed. whether it's rates or whether it's trade or tariffs, people are looking for that trigger to send demand south. i think q3 is fine but people are guarding for q4 to come down we've had preannouncements in ougautomotive automotives. after numbers start coming down but before they hit bottom so to anticipate that trough the worst time to hold semis is where numbers are going down that's where we are now. >> that insinuates the worst is not even close to being over >> the sector tends to be very anticipatory the stocks tend to overshoot in

. >> all right, santelli >> thank you >> and scott nations as well, and mike prosser will be with usoughout the show. >>> hurricane michael now pushing through central georgia and leaving a bath of destruction behind courtney reagan joins us with much more on this. she's on the ground in florida and saw the storm come through yesterday. courtney >> reporter: hey, becky, it was pretty frightening i admit when that storm made landfall, 155 miles per hour we're actually at legendary marine, you can see -- marco, if you can pan over, look at the boats that were literally just tossed around as if they were toys from this boat storage area, almost a boat parking garage which has been leveled almost like match sticks the roof was torn off. the siding was torn off of the main structure here in the middle some of these boats may be intact, but i'm not sure how you're going to get to them to determine that and the wind did extensive damage, to homes, to roads, to schools, ripping siding off of the roofs. also, a number of retailers were very heavily damaged here. many of them still doing their