>> that would be nvidia. zi links i want it to pull back a little bit they are in the sweet spot. >> they are almost at its high. >> had a great quarter. >> the options market show bearish activity in a key sector we will tell you where that is alste the s&p sector check. re eatleading the way. s&p is up a little more than 17. we are back in two ron! soh really? going on at schwab. thank you clients? well jd power did just rank them highest in investor satisfaction with full service brokerage firms...again. and online equity trades are only $4.95... i mean you can't have low cost and be full service. it's impossible. it's like having your cake and eating it too. ask your broker if they offer award-winning full service and low costs. how am i going to explain this? if you don't like their answer, ask again at schwab. schwab, a modern approach to wealth management. ♪ cal: we saved our money and now, we get to spend it - our way. valerie: but we worry if we have enough to last. ♪ cal: ellen, our certified financ

they make chips for qualcomm, for amd, nvidia and texas instruments.s could be the catalyst i want this trade on early next week i want to bounce more on monday in the smh this could be a good hedge if you own nvidia or those up a lot. when the smh was at 97 bucks you could buy the november 95, 85 put spread paying $2 for it. that breaks even at 93 bucks you could make up to $8. your max risk is $2, about 2% of the stock price. again, this is a sector etf that's basically down a couple percent with a few large components holding it up if earnings season doesn't hold up for the big ones this thing is going lower. >> carter? what do you think? >> you can see the lines drawn it's a fairly textbook uptrend then a break in trend as dan described it one thing i would point out, of course, which is also part of that, not only do we have -- you see a two-panel chart here not only do we have a break in trend, but we have deteriorating relative performance in many ways that's what alpha is -- the opportunity cost to be in one thing versus something else as depic

this could be a good hedge if you own nvidia or amd or some of these that are still up a lot.ooking out to november expiration, when smh was trading at 97 bucks, you could pay $2 for the put spread, breaking even at $93. you could make $5 between $93 and $85. your max risk is about $2, about 2% of the stock price. again, this is a sector etf that is basically down a couple percent. it's got a few large components that are holding it up if earnings season doesn't hold up here for those big ones, this thing's going lower. >> all right carter, what do you think? >> yeah, i mean, you can see the line's drawn it's a fairly textbook uptrend and then a break in trend, just as dan described it. one thing i would point out, of course, which is also part of that, not only do we have -- and you see a two-panel chart here -- not only do we have a break in trend, but what we have is deteriorating relative performance. and really, in many ways, that's what alpha is, right the opportunity cost to be in one thing versus something else. so, as depicted here, essentially, semis have been in a r

but nvidia, that's a qualitative name relative to an amd. adobe, sales force, microsoft, these are qualitative names. do you think that's the characteristic of the market and how we should be defining it, looking forward? no longer looking at the momentum names, those aren't going to be the sources of opportunity. but looking at real strong quality. pepsi, mcdonald's, procter & gamble, walmart? >> well you know, i want you to hold off on your answer, just for a moment forgive us for a second. just want to get to steve liesman who is sit big right now with breaking news >> richard claret of the new vice chairman of the federal reserve will say in his first speech as vice chairman that further rate hikes are likely appropriate that monetary policy is still accommodative the real funds rate that is the one adjusted for inflation remains below neutral. saying fed policy should aim to sustain the expansion. now it gets a little complicated if here, because here he says the number of hikes in 2019 depends on growth, employment and inflation, and h

nvidia got to be cool.es back down, i am concerned of amd and having been up on the spike. i like the stock very much i am following the china stock they are strong again. china. >> every half hour you have to refresh. >> how could boeing be at 388? did it double? has this stock double? this is a big cap stock, people. this company is just on fire where does it last october oh, look at this, 255 and now it is 388 >> yes, i am aware >> that's every four planes. >> is it 20 or 25? >> one out of every four planes go to china. we have to move on, david. >> boeing is not the best down stock of the year but number four >> really? >> how about disney. >> apple >> disney stock will act so well >> let's get to bob pisani on the floor. >> happy wednesday, great start to the day, two to one advancing of the stock china is still close and europe is mostly to the upside. folks, when you got financials up and tech up and healthcare up, that's what you want that's how you get 2-1 advancing to the declining stocks. we are

i prefer nvidia at this time nvidia's forward pe is 35% lower than amd quite frankly, their chips haveen better you know, they have been punished a bit over their exposure to crypt ocryptocurren. so we would prefer nvidia over amd. >> nvidia actually trades at a discount to another chip stock that's a little bit of a novelty. thanks, guys for more trading nation head to our website or follow us on twitter. >>> coming up, china reportedly using microchips to infiltrate and spy on american tech companies, including apple and amazon what it means for big tech and america's national security, next >>> and now the latest from trading nation.cnbc.com and a word from our sponsor. >> a double bottom is a chart pattern that suggests a downtrend may be ending and ready to reverse sometimes called a "w" formation because it looks like a "w." a double bottom is two distinct lows on a chart around the same velel. traders often view a break of the highest high in the formation as a bullish signal. >>> let's take a check of the markets. we've got the dow, nasdaq and s&p 500 all down solidly by more t

company. 17% of their sales come from -- come from apple and make chips for qualcomm for amd and nvidia and texas instruments. this could be the catalyst preponderate i want this trade on early next we can wouns a little more on monday in the smh this could be a good hedge if you own ht nvidia or looking at november expiration when the smh traded at $97 you could buy the november 95/85 put sfred paying $2 for that breaks even down at $93. you can make up to $8 between 93 and 85 the max risk is $2 about 2% of the stock price. this is a sector etf basically down a couple of%. has a few large components that hold it up if earnings season doesn't hold up here for the big ones this thing is going lower. >> all right carter what do you think >> yeah, i mean you could see the lines drawn. it's a fairly textbook uptrend and then a break in trend just as dan described it. one thing i would point out of course which is also part of that, not only do we have -- and you see a two-panel chart here -- not only do we have a break in trend but what we have is deteriorating relative performance. and rea

one i will be watching very closely is nvidia. it has broken below its 200-day moving average.levelelow , that's the first key lower low , that would show the stock is showing a trend change. the other thing you mention, you talk about these other groups, you have the housing stocks. i have been very cautious all year. they are getting so the not. do you change your thinking on nvidia and others because of the revelation there is chinese hacking on the hardware side? matt: yes. a couple of different reasons. there's the certainty issue. what kind of regulation are they going to have. we kept hearing earlier this year they really had to worry about the u.s. government having more regulation on this tech company. we will head now to washington. another tax cut? middle-class families could be looking at a windfall between now and the midterm election. president trump: we are looking at a major tax-cut. i would say some time around the first of november. coming as a surprise to lawmakers, baffling numbers of the president some party. let's start with what does not make sense. you h

. >> right >> it is like nvidia, there was a big upgrade of nvidia today. nvidia is finally inexpensive nvidia is dicey because they have this product hold that's too good for every single video dpa game >> i like it very much, it is down to 600. >> i want you to expand in talking about last night you are talking about the downturns and back then it is portfolio insurance and now it is etfs, amazon is in about half a dozen of etfs and people come in and banking down on etfs. i am not against short selling >> etf is so much powerful it is like when they came up with a machine gun verses the cowboys. >> horses don't farewell >> people have been talking about it for years >> there is so many of them and you can really beat up on fang one day fang will have its revenge. right now they're just hitting it and hitting it. it is interesting that rth, the retail were selling amazon short and buying the rest of rth and that's -- is that a picture of fang holy cow, where is hi smy sun glasses. i like fang. when we came up with fang, these stocks are about two-thirds l

they want to go nvidia high end.ply not enough games to make it so you want the product which is a product gap that has happened to nvidia and that is when you buy it. >> will they not write for it? >> it's so brilliant. this is just quantum. >> when you have the guys who do rock star and grand theft auto, they can't just turn on a dime. those games are hard to do. red dead redemption, for those who in my family are gamers, wow. you can't do number three right now. >> jim, cat below 140 once again. is this sort of the textron economy talk sng. >> -- talking? >> united reynolds does not use caterpillar. textron is a quadry on the conference call. people are generally confused. confusion is not positive. he has a terrific business. what really matters to me is that people keep saying cat is bad, uri is bad and that is a mistake. it's what the people do. >> i remember when it was like a big infrastructure proxy and going to the moon every day. >> and they also built -- they kept buying companies that were involved with

intel makes server chips and nvidia makes video.new effort from alibaba, you will still need the chips. but if alibaba is successful, they will not need to buy as many intel and nvidia chips. they want to be able to cut out the big u.s. semiconductor companies altogether. carol: so watch out. how does donald trump play into all of this? >> the u.s. government got into it with zte. zte was not able to buy american components. zte and every chinese company is dependent on american modems to make cell phones and connect to the internet. if you look at china as a whole, i think mark writes 75% of the semiconductors are coming from outside the country. without a domestic chip industry, china will be totally dependent on the united states. so this is a long-term effort to reduce its dependence on america. jason: you also think about the relationship a consumer has with a company like alibaba. as you said, part of the reason they were doing this is because it will come right out of your alipay account. >> and you would need to have their a

carol: intel and nvidia, watch out? max: watch out. donald trump play into all of this? max: the u.s. government got huawei andh zte. zte was not able to buy american components. zte and every chinese company is dependent on american modems to make cell phones and connect to the internet. mark writes 75% of the semiconductors are coming from outside the country. so without a domestic chip , industry, china will be totally dependent on the united states. this is a long-term effort to reduce its dependence on america. jason: you do start to think about the relationship a consumer has with a company like alibaba. part of the reason they were doing this is because it will come right out of your alipay account. max: you would need to have the app on your phone. the chinese consumer is using a chinese app, chinese payment platform, run on chinese hardware. this government driving a futuristic vision of the world is going to create a bottom value and make these chinese -- create a lot of value and make these chinese tech giants even stronger.

and by the way, nvidia is down a lot.story starting to take hold i like the market coming down a bit before it goes up. i like that housing stocks are better but remember this is not a good day not yesterday. >> happy powell? >> happy powell. >> yeah, because he's happy raising rates. >> he almost looks like he's happy raising rates. >> happy powell. happy powell he raises rates he gets happier so he's happy powell. >> what's on "mad" tonight >> we have michael rubin who owns everything in philadelphia. he's really the only guy that owns anything and bill newlands and rob sands, we'll talk about constellation. maybe they're selling wine and they have the big cannabis situation. ask him to show his shirt because that's his best branding. >> see that, just like the leaning tower of pisa, right come on, this is fabulous here i've got the whole -- i've got jefferson in my hand, man, madison was pretty good, too happy madison, happy powell. >> it's pisa, not pizza. >> come on, i'm from philadelphia. >> see you tonight, "mad mo

, which is why we sold nvidia for my charitable trust earlier this month. third, people are panicking. in a panic, investors sell first and ask questions later. with all these tech stocks bundled together, it's more than likely a sell first, ask questions later. so there's the history of the selloff, but what do we do more importantly, now that the market is severely oversold, is it time to go bottom fishing in tech, which you know i have not suggested yet. just a little bit nibble today but now i've got some names. if you want to pick among the rubble, you need to be rigorous and empirical, as we said at the top of the show. okay i want you to take a deep breath, and i can do like a plank. i learned about that and set some downside targets. find a predetermined level where you think your favorite tech stocks would be worth buying and wait for them to come to you we're going to call this "the hunt for red october," and i've got some of these stocks i wanted to give you history and context. when i looked over the hardest hit names in the nasdaq 100, seven st

and nvidia, these are really powerful companies already hugely profitable. those are different kind of investments. i think the amount of money that softbank is trying to deploy with the help of saudi's and others is a little dangerous for the economy in general. they have to find these huge bets. huge bets can go hugely wrong. so far, they haven't. let's hope for them that they haven't. emily: let's talk about the saudi investment. the saudi investment fund investing another $45 billion in softbank's vision fund. talk to us about the dynamics there. what does that mean? sarah: it means that the saudis have been pleased with how the vision fund is performing. they have a big investment conference coming up in the next few weeks in riyadh, and masayoshi son is expected to be there, and will probably talk about the performance of the fund. mohammad bin salman and masayoshi son seem to have forged a relationship that is very simpatico with each other. they seem very happy with it so far. thing atesting softbank might be more internally. are all the investment m

nvidia hangs in the balance.md and nvidia in the balance. >> amazon still up 47% for this year. 160 billion in lost market value. remember when it was a trillion very briefly in a matter of a few weeks. >> is that like $250,000 it weighs 37 pounds, by the way. >> do you have a 20 in your pocket he has like 250,000. >> look at that. >> percentage wise it is going down a little bit. maybe it is 225,000 now. >> i'm looking for a bounce because of what -- those who are wise enough to buy, they are flatly selling. down 72. i don't know. why not wait a little and see what happens. sellers will come out of the woodwork. don't be in such a hurry. you want to buy something small go buy. go buy something. you know that guy is a seller. he is not a buyer. he is a seller. >> the warning out of ppg earlier in the week, the revenue warning on the floor today, you do not see as a pattern. >> they talked about five regions which is an issue for supply chain. the supply chain was totally caught offguard by what happened. floor is

microsoft 4% alibaba down 12% intel, cisco, sales force, adobe, nvidia. >> that's where the money's been made through the bull market >> is it a sign of real weakness internally or is it a sign of just a rotation that's been taking place >> unfortunately, scott, i think it's the former. i think there's serious concern about earnings we've already said this and, steve, you said it, how are you going to build capex the multiples have been higher and that's where people will pull back the quickest and largest. >> i don't agree >> netflix is not a capex story. that's ridiculous. amazon is still up 50% -- >> the comment isn't ridiculous. >> well, no. >> the fact these are high flyers and might come off a little bit further because of their higher multiple is not ridiculous >> i feel you but that's not what you said. it's not multiples these aren't tech stocks we'll leave that aside these companies are all very different. facebook has an advertising business and part that have is cyclical and most is global. that is a separate thing from the driver of netflix earnings you could argue have more

video games >> take two is going to be huge and live life-like, too >> and fortnite and i question nvidia does the great chip for this they got a product between now and this new touring, amd has been going down and part people feel that video games has peaked i don't think the data has peaked we have more peaks than the high peaks region 46 high peaks, i climbed i got to tell you this is like being in the high peak zone. it is not the himalayas. everybody is worried about everything >> sure. >> take netflix for example, it gets cut and price target cuts by goldman today, 430 and 400 to reflect a rising interest rate environment? does that sound intellectually species? >> rigorous? >> i think that there is a moment on the jp morgan call where marian lakes says listen, the cfo is really smart. it is hard if you listen to that call do you not want to say forget about it you have special situations where jp morgan -- it is not because of the china exposure that we saw a lot of luxury had. it is 11% short. that's a compelling story. the special situation story are compelling we have to be car

and the problematic the multiple at different nimes other than the nvidias of the world there are many multiples still palletable. >> cut from that earnings to 2019 this. >> stop, stop. >> going to maga zbleen. >> still ahead, earnings taking the market on while ride today the dow dropping near 500 points ending just over 1090 points down how do you know what's save era safe to buy amid the chaos courtney reagan slitting down exclusively with the target ceo moments ago. outhcoumsomething very bullish abt e nser abt e nser we will bring you the comments go ahead, ask it a question. tecky, can you offer low costs and award-winning wealth management with a satisfaction guarantee, like schwab? sorry. tecky can't do that. when "fast money i ca... are you getting low costs and award-winning wealth management? if not, talk to schwab. >>> well back to "fast money." disappointing earnings from 3m and caterpillar taking the markets on a while side and underscoring the trend this season selling. dom chu in the newsroom breaking down the earnings and winners and losers dom. >> melissa this season

. >>> be >>> some high profile names like nvidia, but broadening out a bit here, again, session highp 114, morgan. >> in terms of those chip stocks, you see both the nasdaq and the nasdaq 100, the worst performers on the day, each down more than 1.5% right now it's really more of a risk off tone in the markets. you've got utilities and real estate, consumer staples are the sectors that are positive in terms of the s&p as we've seen the yield on the that 10-year treasury move back down to 3.119. >>> meantime watching some developments out of riyadh today, as the saudi conference moves on >> reporter: hey, guys well, it's standing room only here as crown prince mohammed bin salman took to the stage and said in response to questions about jamal khashoggi, this was a painful incident not just to the world but to all saudis. he said folks were trying to drive a wedge between saudi arabia and turkey as well. lots of questions remain about what exactly happened to mr. khashoggi, but the crown prince was showing that he seemingly has nothing to hide by responding to this question and saying

. >>> welcome back nvidia and options traders are betting another new high is around the corner.on najarian with a look at a stock that has had a great run and is up again today. >> this one got a big upgrade last week and immediately people were buying in the 270s. it started the week at 280, 281 this week and has just boomed higher they're buying short dated calls meaning calls that expire this friday but they've been dead on so far today they were buying the 285s, the 290s, 292s and so forth. multiple strikes, big buying in here each of these about 6,000 to 10,000 contracts that's a million share equivalent of a $290 stock now that's a pretty serious buyer. i jumped in here, already had some position in i extended the positions in nvidia this is a short-term trade but i'm thinking this one pushes through $300 so i'm likely to roll it into next week another quick one, judge, shire. it's out in january. so much more time to be right. this one they're coming in buying the 185 calls big numbers, about 6,500, 6,800 of those they established a spread in here by selling 200s they pai

you're seeing it in nvidia i would say 20 bucks. >> so 20 bucks we're still going to see profits on thisretty significant decline. >> yes. >> we're talking about a better than 20% decline maybe within the next 60, 70 days. >> the down graft is going to be so fierce when you've been up this much. it was 175 down 22%. >> to his point, those are the types of moves that we've typically seen in the stocks in and around earnings historically the thing that i'm taking a look at is because the options are so expensive, this doesn't apply to the stock but whenever you're trying to make directional best. when you see implied volatilities getting so high, 70% or more, it's very challenging to buy a call or buy a put to make a directional bet and make money an at the money caller put us at 10%. >> but sometimes it's the right thing to do. sometimes you outsmart yourself. >> if you had a quick 20% downdraft, you're going to lose money. wait, i got the direction right. i like it against the long because then you're willing to wait it out until expiration if the stock goes down. >>> retail stocks posti

nvidia is a winner here. one reason i asked about competition is this chip.e has a 20-year view on things. he believes it is a superior chip to watch. she came on. she doesn't cancel. >> gross margins are getting better. two stocks are down. gross margins were better. if you are willing to look through the next quarter you will be a buyer of amd and not a seller. they are taking share. intel, i don't think you can be as bad as texas instruments which was basically things are really getting bad. >> i don't hear you being spooked by the weakness in the 70s with the idea that they are the building block for all of our industrial economy. that doesn't scare you. >> as karen cramer would have said, shouldn't you have been spooked a few weeks ago? she would have been so harsh. >> micron, how much is micron down some of the stocks, they pass and have to go down every day. i think that is overdone. micron has to cut -- you have to cut numbers before you get a buy. that is the problem. there is always someone who doesn't know that they are not going to make the number

nvidia upgraded to overgraegt from neutral at jp morgan. citing the recent underperformance and sees stronger longtime growth ahead. the price shares rose to 203 even today. >>> and also with jp morgan shares of jet blue upgraded to overweight from neutral. the analyst sites the values calling it the cheapest of the domesticth airlines. price target is 20. jet blue shares soared% to 17.08. that same analyst downgraded southwest to underweight from neral. the analyst says the stock prices stalled out. the price target is $52. shares rose 2% to 49.15. >>> coming up, the one concern that many republicans, democrats ead independents share as they get to cast votes in next week's midterm election. >> former federal reserve jail janet yellen made comments on the enomy speaking at the schwab impact conference. she said she is concerned the economy couoverheat and that a couple of more interest rates increasesssre ney. she also said that the market volatility reflects the uncertainty surrounding the groebl outlook right now. >>> the home ownership

stock in nvidia taken down for no reason. those things don't happen unless there's a software program that doesn't care what nvidia's business is like, what its future is like just needs to get out because the program has it getting out we have to look at that reality that we are in the land dominated by machines. >> that's fine but if you look at -- let's look at the week to week losers from the dow standpoint caterpillar down 8%. ibm, cisco, jpm, chevron, boeing all down six nothing on that list are attr t attractive enough yet? >> all are but since this administration, the news cycle has been never ending fridays have traditionally in this administration been a bad time to buy. you've got a president that can take shots at everyone >> you didn't really answer my question though. you wouldn't buy any of those names? >> i own caterpillar it doesn't matter whether your list is right or my list is right. >> will you answer my question >> i'm not buying anything from that list. >> answer the question >> i'm not putting any more

bear market, facebook, at & t, intel, netflix, nvidia. again, the chip makers are getting hit hard by the china story. let's bring in our traders at the new york stock exchange and cme group. let's flip this on its side and go bargain hunting. if something is 20% off, say tiffany, princess would go running in there saying i want it now. lot of people run away from the nasdaq and stock exchange at the precise point where they should be buying it. we are also joined by stephen whiting with citibank. i want to start macro, because this may be scary to some but opportunities for others. how do you see it? >> first off, we should remember the federal reserve is trying to slow the u.s. economy. that is deliberate. when you fall through the 4% unemployment rate level, then you look and see that unfilled job openings in the united states are at all-time record highs, when you have already come there, monetary policy is trying to engineer a slowdown. what i would think about in terms of equities is that a sect orlike health care is down today, ver

successful,ba is they will not need to buy as many nvidia chips. alibaba wants to cut the u.s.or companies out altogether. carol: how does donald trump play into all of this? >> the u.s. government got into it with zte. zte was not able to buy american components. company isry chinese dependent on american modems to make cell phones and connect to the internet. writes 75% of the semiconductors are coming from outside the country. without a domestic chip industry, china will be totally dependent on the united states. jason: you also think about the relationship a consumer has with a company like alibaba. part of the reason they were doing this is because it will come right out of your alipay account. >> the chinese consumer is using a chinse app and it is being run on -- chinese app and it is being run on chinese made hardware. this government driving a futuristic vision of the world is going to create a bottom value and make these chinese tech giants -- a lot of value and make these chinese tech giants even stronger. toon: one company is looking prevent election meddling with t

from nvidia, the likelihood it looks like he will be some part of the tail rotor system over the parthted to it. thank you very much, fascinating. a british pharmaceutical company has been charged following an investigation into the deaths and illnesses of babies at a number of hospitals. ith pharma faces seven counts of supplying a medicinal product which was not of the nature or quality specified. it's also been charged with breaching the health and safety act. ith pharma says it will defend the case vigorously. the foreign secretary has announced what he has referred as "the biggest expansion of britain's diplomatic network for a generation". this evening, jeremy hunt announced that he will recruit 1000 more diplomatic staff and will open new embassies in africa and south east asia. he set out his agenda aimed at strengtening the foreign office after brexit at a speech in central london. 0ur diplomatic correspondent james landale was there. what the foreign secretary was doing was essentially saying what on earth is britain and its diplomatic service going to do in the years when i

some of the softbank investments like nvidia is a really strong company and the other chip company, the name of which who arm.caping me, companiespowerful already hugely profitable. those are different kind of investments. i think the amount of money that softbank is trying to deploy with the help of saudi's and others is a little dangerous for the economy in general. these hughesfind bets and huge bets can go hugely wrong. so far they have not. let's hope they do not. emily: let's talk about the fund investment and wealth investing another $45 billion in softbank's vision fund. what do the dynamics mean there? sarah: it's means that the saudis have been pleased with how the vision fund is performing. they have a big investment conference coming up in the next son isks and musty as he --ected -- my feel she son masayoshi son is expected to be there. they seem to have forged a relationship that is very simpatico with each other and they seem happy with it so far. the interesting thing at softbank might be more internally with all the on investment managers on board with this investment.

nvidia, down 100 points from the high finally gained 9%. kemet. a gigantic capacitor company the internet of things, i think it was integrate to the rally. we haven't seen this during this whole month, masko, reported eight ugly miss and slashed its outlook. these stocks actually exploded higher finishing 7% up now the power of negative thinking still had its way with amazon after coming to the gigantic charge, ibm got hit on its second day of purchase of red hat. first day yesterday, the stock got slammed anyway showing the vulnerability, of let's say the immune financial technology group pfizer still in the doghouse the end of the horrendous end to the october. and we had a positive interpretation of the negative earnings from masko. wow. five receivers well open ronald in pennsylvania, ronald. >> caller: hello, jim. thanks for your many years of great guidance and fly eagles fly. >> thanks so much. what's going on? >> caller: in 2010, i bought stock in plum creek lumber which was eventually bought by warehouser, and lately they have been -- the

they have a graphical service business, and it was not so good the same thing happened with nvidia two quarters ago. it is going to take a couple of quarters to work through and then amd will be fine. don't forget how fabulous that stock came from. it got wtoo heated and there was a line that was long you have one line which is the graphical user bit, that one line is enough to send the thing lower but i bet there is another day where you want to own amd. how about robert in florida. >> caller: jim, hi there, what i want to talk to you about today is what any mature retail investor who has been a student of the market would want to speak to you about i come from the age of leon cooperman, peter lynch and you to invest you want to get experienced management, look for 15% growth and have proprietary as possible. what we have now are algorithms made by mathematicians and program trading by the big guys the retail investor is gone, has lost his confidence. and when you see how the market behaves, we're for a few days it is drastically up in the a.m., and goes down in the p.m and when you s

they recently put up a strong nvidia of .7%, jp morgan to overweight the firm to say a car business couldrive those results. months, west two have weakness the chip sector. speaking of strange money, let's take a look at the athletic sector. beat. a massive that could be a short squeeze of 21% as bears rush if a turnaround is in play. it is giving a tyner sector helping to explain for the major averages. vonnie: thank you for that. wells fargo welcome investment institute, tracie mcmillion. she comes to us from, i would guess -- let's have a guess. i would say charlotte north carolina. tracy, talk about the upside for stocks over the next 12 months. it sounds optimistic. tracie: it is optimistic. thank you for having me. the 19% upside we see in markets to the next 12 months is a reversal of this correction and earnings grow continuing its 2019. this year's earnings growth 20% but we see 7-8% growth earnings as well. the president agrees. we have a tweet he tweeted out earlier talking about the fed backing off and starting to talk more dovish. i think if we are going back to our 2800 rang

too many chips and it is exacerbating when the chinese economy is coming down i don't even trust nvidia and amd right here i think they are too high. speaking of china, the trade skirmish that is a price we need to play to level the playing field with the chinese. six, the dollar keeps rising and in part because of interest rate keeps rising that's including staples unfortunately the feds are ignoring this list which means we could have a lot more of what is happening today really thrown away so what would turn things around how do we stop the torrential downpours, there are ways. jay powell needs to walk back his comments about his willingness to overshoot the rate hikes he sees an 80 cent increase in wages, the dreaded spector of wage inflation and it makes him want to slam on the rates. problem is, president trump keeps putting powell on a box by saying, what he did today, all right, i am just a tv host but he is the president. so now i think powell needs to tig dig in his heels tell cramer that he is wrong shame on them. i don't want 2007 again. second, oil needs to come down we cre

>> nvidia is an awesome company.eality which i just mentioned artificial intelligence. facebook, there's a lot of sector rotation going on with the etfs. they have been gradually, they picked up their selling starting on september 24th and facebook and alphabet, some of the other shares -- charles: real quick, i got to ask, any of the names we just talked about, you own them? >> i like amazon, apple, microsoft and adobe among big tech companies that i think every investor ought to own. charles: do you own them? >> i do. charles: okay, great. always a pleasure talking to you. thank you very much. >> thank you, charles. charles: hold on. checking tesla. the stock beaten down pretty big today. in fact, the selling has started to really pick up. it's at the lowest level since the first week of september. elon musk's latest salvo at the s.e.c. may be hurting the stock yet again. your thoughts? >> got to go. i love the guy, i think he's probably one of the most brilliant people we have ever seen. he's an amazing inventor a

and nvidia picking up on the declines. we are also looking at safe haven trading. dollar-yen for example. trading at another have percent of strength for the yen. we see it in gold, almost at 12.40 an ounce. , 9670.the dollar index we will continue to talk about today's trade. this is bloomberg. ♪ vonnie: three big tech stocks extending their slides, the steepening for the index down 2.8%, nasdaq 100 down as well. but it is a broad selloff with the s&p 500, down 2.2% and the dow jones down 1.5%. let's talk about these stocks, snap down almost 15%. amazon down 8.5%. alphabet down more than 5% after earnings. kohl's weenie is here, u.s. director of research for bloomberg intelligence. paul, so some things to quibble about in earnings, but generally you would not fault these companies too much. >> obviously, a weaker tech take today, but for amazon and google last night it was a story of pretty solid results. but a little bit light on revenue. we talk about these names, these are revenue growth stories. in the case of amazon, this is a company that has chosen to diffe

boo-yah >> boo-yah, bill >> caller: hey, listen, i have been looking at some 5-g investments and i own nvidia and intel and qualcomm and verizon and at&t, but i ran across this company called zayl. i was wondering if you are familiar with that >> they've bought up a lot of dark fiber i keep hearing about an ongoing dark fiber shortage. maybe that is the way to play it we will do home work and come back ron in new jersey, ron >> caller: boo-yah, hello, jim >> how you been? >> caller: great thank you for all your help with the home gamers. >> of course >> caller: my stock is ktos. >> okay. th we recommend this. we got a lot of hate mail and hate tweets. a lot of people feel it's been a huge overachiever. but at this price, don't need it we prefer to be in raceom. this is the cheapest defense stock. why? not dependant on u.s. buying they buy patriot missiles. let's go to maureen in florida >> caller: hi, jim, thank you for helping people like us get a better handle on our savings >> i just wish there was a show when i started buying stocks in '79. what's up? >> caller: i purchased johnson contro

what you have is nvidia versus a broad com.ticular ones, that's a determiningens, whether or not the market stresses lead to more of that remains to be seen >>> if you look at the software and services side of things, you have intuit and symantec those particular stocks have diverged pretty markedly you can see as well, one other one to highlight, on the communications services side, within the megacap social internet google and facebook. we'll see if carl in times of stress if those big pairs trades end up widening out even more. >> thank you very much >>> dow is down 228, we're back in a moment. whoa. this looks worse than i thought. mike and jen doyle? yeah. time for medicare, huh. i have no idea how we're going to get through this. follow me. choosing a plan can be super-complicated. but it doesn't have to be. unitedhealthcare can guide you through the confusion, with helpful people, tools and plans. including the only plans with the aarp name. well that wasn't so bad at all. that's how we like it. aarp medicare plans, from

underperformers won't work in the netherlands, in the nvid nvidias, in the facebooks, if he the they* they don't work, different scenario the s&p cash, that's a level of resistance we are almost there now. watch to see if we can take out that level in the close. >> you are looking for a 2532. that's a february low. >> i am looking for the february low 2532 the next couple of days, need to take that out before midterm elections because then it gets dicey if you can hit those prior lows. >> all right thank you. >>> the mark hotel in manhattan is offering the most expensive hotel room in america, and cnbc cameras were the first to be allowed inside because we are just that good robert frank is here with more on that. robert, this is one heck of a story. >> yeah, one heck of a hotel bill, too. the mark hotel is a favorite of oprah winfrey, the saudi royals. it's about to become more exclusive with the opening of the grand penthouse suite. take a look at what you get for, that's right, $75,000 a night. >> reporter: straight through the mark hotel lobby and up 16 floors is the most expensi

nvidia, one of the chip stocks, that's another area that just collapsed. j.p. morgan chase, the whole banking sector, even though they are set to present earnings and would normally benefit from rising interest rates, they were hit as well. let's go to the next panel a big movers. facebook and delta, which reported positive pricing control, they are raising fares. berkshire hathaway and amazon, some of the big decliners. let's take a look at square. this is a fascinating stock. it is a momentum stock. it has more than doubled year to date going into this week. it has lost $13 billion in market value this month alone. as much as 16% intraday, which got pared by the close. isn't this a sample of a stock that is being oversold? or perhaps this is the beginning of a slide that is here to stay. volumes, surging above the 30-day average. the s&p dropped below the 200-day moving average for the first time since april of this year. what are the technicals telling us? su: this is the big concern. let's go right into the bloomberg. gtv is where you can find our library o

for the chips, that's an interesting conversation if you look at the smh today, that's higher amd, nvidiag higher. i spec'd in with b riley's craig ellis. there is conflicting confluence, the demand picture is mixed. smart phone, broadly underwhelming. he said he is fielding calls from investors after the sell off, and some were asking what looks oversold in his opinion it is tough even as you move into earnings season, you have big, broad questions that we're still dealing with on trade tensions, tariffs. if those worsen, craig's point was there's no name in his coverage universe he considers -- he is trying chip investors, equipment companies you still look for those that pay dividend and pay through the wait of the transition >> brent, one of the big overarching debates in tech regards cycling. tons of runway, social, cloud and others, chips aside, i wonder how much validity you put in that argument >> we go through cycles. we have seen the movement. software massively outperformed, internet is weaker, seen a movement in and out of semis into software. software which is the sector we c

nvidia, macron, some of the other higher beta names did not like him at all.t stocks chart looks like death. the thing completely fell apart. it had not looked in that bed until about a week ago and then they gave it up. the question is, is this a complete cyclical thing and we are now on the other side of the semiconductor cycle? or has this played out and we got the high-volume moving out goes back up. and theyon is up 3.5% have come back. this is not the end of the world. they are still up on the day. caroline: and alphabet has not eroded its pick up either. paul, you were saying the top line is what people look at and then they will start to dig into the numbers. how much is it also in terms of future guidance? amazon's fourth-quarter guidance is pretty light. how important is not what the revenues look like for the third quarter, but what they look like going forward? paul: what is really driving the stock, the initial aftermarket trading, is a fourth-quarter guidance which i would call lighter than people even expect. a lot of times with amazon, the guid

some of these, nvidia, i want to shout out, was down something like 11%.t gold, this is something that we were following so much yesterday, in that second day of selling. we really saw this flight to safe havens, flight to quality. yesterday only we saw gold go higher and in fact, we saw bonds come, the yields anyway, coming off recent highs. gold trading at a two-month high yesterday. we have some charts to show you. down today but still very much up for the week which sort of reflects this overall volatility. the one key theme that stands out right now is that these tech names that have been so beaten down are certainly being up. the four banks posted earnings this morning, jpmorgan chase the only one, citi, wells fargo, pnc, financials as a group are the biggest weight right now on the s&p 500 which is unusual, because out of the gate, there was a lot of optimism in this group. you had jpmorgan chase beating on the top and the bottom line, but trading down. concern about the future and one of the comments they made about market dependence form of revenu

watch nvidia they need to hold say 214, 2 is a. told you to sell it higher, but geez, it's getting interesting. all right, let's get to the heart of the matter. what continues to go on is a vicious pincher movement the feds are running a hard-line against the economy totally undeserved many fed leaders said things are fantastic in the economy meanwhile i see no break through with the chinese on the horizon but we're getting a decline in housing prices and the oil has fallen off the cliff the rates i have to tell you here's what you haven't heard from anybody else, i think they peaked for the remainder of the year the fed has to wake up to the fact that raising short term rates the ones they control is a silly way to fight our own tariffs. let's accept the fact that this market has gotten swindled for days on end because of inflation, anti-growth rhetoric from the fed endless chatter from the president against china. there's some so much we can go down on the same news. looking at the earnings i see inflation peaking, i see the fed

add in nvidia where you talk about multiples that are outrageous amazon sold off more >> i want to quote from it pardon me for interrupting we see further relative down side for small caps and high multiple growth cyclicals like tech and discretionary >> the high multiple side of that, though and i would challenge mike and ask him right now how about apple, how about microsoft, how about oracle, how about some of the names that are tech names but these names that actually have multiples we've talked about for a long, long time that aren't outrageously high i'm against the high multiple names -- >> you'll find selective names that you can play to win >> absolutely. >> the broader trend moves, doc, people have been sitting in have the potential of being upset as a result of what we're witnessing with rates and growth. >> yesterday we watched on the security concerns with google and alphabet, a quick 20-point sell-off over there. so some of those, as josh said yesterday, not a significant driver for their business, though if it is like in the case of facebook, something you have to pay atte

. >> it's not like a cramer stock or nvidia, netflix you won't get rich on that right? >> we can't do it any way. we have to get rich on whatever we're doing here which is depressing >> no, it's not depressing it will be great it will be a big show. "squawk box" coming up in a few minutes. joe referenced the midterm elections. let's bring in an expert to talk about this, trevor hanger joins us there's four possible outcomes things stay the same democratic sweep, democrats take the house, or democrats take the senate how do you predict the odds on the likely outcomes rite now >> thanks for having me. right now we see the democrats are likely to take the house we think the republicans are mostly going to hold on to the senate that's at about 2-1 that that's the most likely outcome. you can see republicans hanging on to the house and also holding on to the senate, sort of a status quo scenario there. something around the 20% range then a democratic sweep is looking less and less likely down around 10%. hard to see a scenario where democrats can take control of the senate b

big barb cap specters like nvidia down 12 about% and kla corp noun 11% and another group take a majorlast week and a half, visa down 24% and mastercard down 11%. major damage melissa, back to you. >> all right, bob. there is unit in one of these downed names according to >> soy why don't we just pick up where bob was leading off, square let's take at the building when you want to talk about the ecosystem, you look at square with a $70 billion ecosystem payment, services, software. number two, financial services their cash out has about outpacing venmo. they got caught up in the value. why the stock sold off, not because any of the fundamentals have gone south. the future in this name, international expansion. why? it's a percentage, very small percentage of their kofl right. >> that's why it's still a buy for me. >> talk about some technicals. if you look at fundamentals you get the picture here and fibonacci, different pick tower there. the even with the selloff we've seen recently. you go from this low hand this high and come up with the retracement levels and it stopped basically o

the stocks on the nasdaq they crashed look, you came in one day and you saw intel down this much, nvidia down, you would say, holy cow. how are the companies doing? the answer is the companies are doing pretty good. i think the idea now is the time to worry about the crash repeals that you were somewhere under a rock the whole time we just had a crash. >> i had so many people ask me over the weekend what's going to happen with the market on monday is the key to the correction what's going on with tech? >> the key is what's going on with tech. it's not what's going to happen to the market monday it's what happens to the market on wednesday why? you get the best f.a.n.g. reporting tomorrow afternoon, netflix. that holds the key to the market's ability to stabilize and move higher in technology. so far we haven't had the f.a.n.g.s report to me that's the catalyst. what will the guidance be with netflix in q4? i think netflix is so important this week in its earnings. >> down 21% from its 52-week high last week alone down 4%. how do you see the market, has it run its course? >> you've had co

everything from nvidia to netflix to amazon just getting crushed. so the market seeming to spiral lower is there an end in sight to the selling guy. >> well there is an end in sight but we started the show last night and said although it looked like the market rally gave the all clear we thought maybe there is still bad news ahead. i didn't know it would be down 607 oh pinpoints but here we are. a couple fridays ago we had a conversation market i think was down 5% i said to karen goes down 7, 8% we're probably halfway there that doesn't make it necessarily bad. you are flushing out weak hands flushing out a lot of stuks that got ahead of themselves. mike wilds from morgan stanley saying the same thing. now is when you hunker downing and look at stocks you wanted buy the last five years but inable to because they got away. now into range be maybe it makes zbleens the problem with that guy is i appreciate the rational view on this i think we are going lower too. except for the fact that the velocity is picking up steam down 17% on semis in the month 1