bob pisani has more on the selloff. orter: it was another sharp down day on wall street adding to the steep losses for the month of market. the markets dealing with a slough of issues old old and new. china slowdown is prom nlt. morgan stanley warned about slowing auto salesn china. warnings for "g," ford and chrysler. cart pilar is feeling the pressure. 25% of sales in asia. n bu just caterpillar np sealed air opsachted on the and bottom line joining many industrials seeing larger pressures weaker currency, higher labor costs and tariffs. the markets took another dip when headlines came from the european central bang mario draghi. draghi says one of the biggest risks is countries trying to circumvent the eu rules. it sent major european stocks to lows. stocks with signifint exposure to europe like mcdonald's, dow r dupont, coke down as well. finally a debate around steve unusualen's decision to pull out of the davos in the desert conference. the saudis are involved in tech funds, raising funds for technology companies and inos good if they are isolated. it puts the dow and s&p about

phil lebeau on boeing and bob pisani looking at what could possibly calm the markets. begin with dom and get a check on the week's earnings so far. >> earnings season continues to be that positive theme that's developing that hasn't exactly translated into constructive market moves today's price action reinforces that feel a bit. it's something that jeffreys equity strategist steve desantis said 63% of large cap companies have beaten earnings estimates, 65% have beaten sales estimates, but only 48% have managed to beat both top and bottom lines now, the thesis he's talking about here about what's shaking the market is concern over whether last quarter, the second quarter, may have represented peak earnings growth still a little early to tell there. but data still has s&p 500 earnings growth at 22% for the quarter if all other reports come in as expected. we're also going to see top line revenue growth of 7.3% a couple of key hot spots to watch that have been in medium to longer term downtrends and certainly recent earnings catalysts this week, regional banks, especiall

bob pisani has details. >> buybacks have been one ogthe stories. data track estimates that companies&pn the00 have repurchased $646 billion of their own stock, that is about 30% more than the year before. there is plenty ofr dry pow that is left. one firm told me there is at least $350illion in unused be puts just waiting to back to work. more than om300nies have active buybacks programs. contrary to popular belief, companies can buyback stocks during the blackout period providing companies have set up a plan to buy back scks on a regular basis. there are restrictions such as not buyg in the last five minutes of trading. corporations typically buyback on the dolla stock. corporations can buy back more stock and may get more . aggressi when is this going to end? when will companies stop buying back stocks? right now they are generating enormous amounts of free cash flow. unless com can find an attractive use for the excess cash, i'm betting companies will still funnel thef money their excess cash to buybacks. for "nightly business report" i'm bob pi

let's get to bob pisani. very good point. >> industrials and some of the tech sectors, 8-1.t the open, carl, that's not quite 10-1 that's a good flusher to start out. we did get to the 2710 level we look at the sector, it is the sector that are hit. you have semiconductors and industrial name and staple like procter & gamble, they're aliena aliena alienaal all flat right now harley davidson remains their shipment forecast. caterpillar, they did not cut anything verizon of their full year guidance bear in mind about this, we are not seeing any dramatic cuts of any guidance here. one thing that's happening that's a little concerning stocks are not rising on good earnings or raise fourth quarter guidance we have seen a number of companies have raised their guidance because of the comment the company made they're not going anywhere or doing anything united rental and citigroup and csx and vf corp. this is good news for the company and it is not. this is broader going on and broader concerns of individual earnings for these companies the debates very simple. do the positives out

bob pisani explains wh c >>> risints are front and center for investors about but revenue growth could be the answ companies look for to kpat the high ert cost corps america is facing. earnings season has begun so far the early signs looking better than they were expected out of 0% companies reporting 9 a o beaten earnings with earnings growth at 25%. according to the earnings scout. above expect assignings. but the key to the market upwar momentum may nb revenue not earnings why because higher costsithout higher revenues will lead to margin erosion. and that can be a rally quill o ll are. you don't want that. but the revenue steadily improved as the economy strengthens. venue growthistorically averages 3% to 5% process. now estimates of 7% to 8% the next few quarters making a the coany as job he is year with revenue growth in the 7% or 8% nge an increase in costs of say, 2% for higher wages or interest rates, can be absorbed. last week's market action tells us that investorsre clearly worried about a sudden spurt in interest rates. bank of americayn merrill leaked the global fund mana

for "nightly business report," i'm bob pisani at oce new york exchange. >> okay.o what happens next? it's certainly something investors all wanno to and it's something that the major wall street firms are trying to figure out. morgan stanley's top strategist says the october selloff c ald morph inear market. while goldman sachs says the mayhem has gotten out of hand, and that stocks will rebound. so, whi is it? mike santoli did some digging. >> brutal october selloff. e has not only dropped the s&p 500 by man 9% and pounded the majority of stocks even haer, it has also place the market right on the line between a routine correction and more serious and lasting setback. the sharp retreat threatened te a longer market uptrend that stretches back to february of 2016 when the worldes ind were emerging from a six-month tailspin related to a global thdustrial slow down and oil crash. weakness recently has investors on alert for signs the market is detecting signals sharp tapering off of u.s. economic growth and corporate profits into 2019. at a time when the federal res

bob pisani looks at w the blue chips to new highs. >> industrials drove the bumming of the gains in the blue chip index with trade related names bogey caterpillar and having outsized impact in fa boein hit an dwrault high tp and tech fueled the rally with apple and intel other chip stocks bouncing back despiteri w over memory pricing and demand. on the flipside twos key gro were lester out. the bank stocks and retail names. the banks have been lagging because loan growth has been lackluster. the yield curve has been flat and because they had t pay more interest to depositls. as for reteakness let's call to it amazon effect process big names like athenta aber kronly and fitch. and small retailers were all down four, five, six% after amazon's decision to raise the minimum wage to $15. some are concerned that this adds another layers of stress for retaers most of whom pay far below $15 as the minimum wage. reta margins have been pressured by here input and transportation costs. that's a big issue. for nightly business report, bob pisani at the new york stock exchange. >>> now rising confid

for "nightly business report," i'm bob pisani at the new york stock exchange. >>> so as you can tell, it is iethe b week for earnings, and so far the results have been majority ofe companies that have reported topping expectations. on tap this week as we mentioned e the financial reports from a number of giants including amazon, alphabet and boeing. so joining us now to discuss how this quartere compares to last period is mike tomorrow p soon, president of s&p investment advisory services.ba welcome, mike. nice to see you again. >> hi, sue. from everything that i've been reading that it's going to be a pretty darn good y quarter, off a little bit from last quarter, but still nothing to shakeck a s at. >> no, that's right, sue. looking probably right now youba can py say that 22% is probably a pretty good number. i expect that number may kreecr up a little bit to 23, 24%. what iike about this quarter is that three sectors that, you know, really me up a successful earnings season are looking really good. financials, already we've seen a preview of them and expectation is for themo have

and as bob pisani reports, so far there a has been different response to the results this time around. >> earnings season is in full swing but right now the market has a problem. many stocks are no longer rising on good enings or even good guidance. the market typically rewards coanies raising guidance and punish those that don't. but something different happening this quarter. companies raing the fourth quarter forecasts on analysts raising the forecasts are not being rewarded csx. vf corp. all posted earnings beats. fourth quarter estimates raised but all trading down since the reports. tat's going on? the market is tryifigure out if the positive outweigh the nchgts right now and some are worried the positive momentum from the tax cuts are wains a bit. rememb what the stock market has been rice on on higher revenues tax cuts and partially redu regulations. but new headwinds have emerged inhe last several months tariffs higher rates, higher commodity costs and now country specific issues c weighcerns over china slowing be italian policy andaudi arabia which is important since saudi a

bob pisani takes a look. >> reporter:he stock market is a voting machine on next year's earnin for the the moment it's doubtful that they can deliver on earning growth and 10% and revenue growth of 6%. why is that? because the macropicture is more complicated and frankly more confusing. six months ago we were dealing with a strong u.s. economy taxc and less regulation. and frankly in the much else. now, the picture is much more complicated. with china slowing, tariffs, the feg hikin too aggressively but also a host of smaller issuesol like strongr higher labor costs higher raw material costs, a populist government in italy and the possible isolation of saudi arabia. however, the main macroccerns are very obvious. china slowing and the fed hiking tooheggressively are main issues that everyone is believes a glass is half empty. how much less, the bulls think the growth is 7o 10% in 2019. the market seems to be telegrachg that's unlikely. the s&p 500 is trading at 15 times 2019 rnings. it was 16.5 a month ago. is a the multiple reflection of the price investors are willing to pay for a fu

the bob pisani at the new yor stock exchange tells us what's behind the selling and what's gettinhit. >> wall street's streep selloff bled over today with the dow tumbling. ending down about 500. moving between gains and losses in choppy trading. but rates continue to be the main driver overall. the markets looked to the holdingil steady u 2:30 eastern time when there was a huge burst of selling aroundfs et in the equity space and treasury bond etfs. out stocks into bonds rotation. way we see is the momentum drivenflushout of big cap names and also a couple of sector specifictories driving action today. for example, bank stocks have been weak early on because of a weaker read on consumer prices. they were driven lower by strong demand for treasury at the 30-year bond auction pushing down yields to session lows generally bad for banks. and energy lagged falling on a bigger build up than expected in crude oil inventories, an issue for the energy stocks. tomorrow will be a key d to watch with bank earnings kicking off with jpga m and big read on consumer sentiment. for nightly business r

bob pisani is breaking it all down. >> hello, melissa.&p yields 1.8% on average but five stocks in the dow pay twice that amount. now ibm is the leader here but that's not surprising. ibm has raised the dividend every year for nearly 20 years in fact, it's doubled the dividend in the last six years so no surprise on that verizon, exxon, chevron, progress or the & gamble telecom and oil pay higher rates than the rest of the market. the increases are higher, 292 companies raised their dividends an average of 14% this year alone. the highest raise since 2014 now you know this has coming with the bad news. higher rates may make them less appealing to investors we had below trend gdp growth and low rates. you buy growth stocks and this is the companies that have consistently raised dividends. this was a popular investment for years. but as soon as interest rates spiked in february, dividend payers underperformed the market and they have underperformed as rates have spiked recently so the picture is complicated here because many of the high yie

bob pisani down at the new york stock exchange so, if you own any of these big industrial names, howrotect yourself from more losses let's kick it over to mike with his "call to action" on ba that's boeing, mike. >> yeah, i was taking a look at boeing, and i think we are actually seeing a setup now in the market to do this kind of a trade, which we're going to be looking at right now, a covered call in a lot of stocks. the first thing i would talk about here is resistance there hasn't been much resistance for many stocks, but i think there might be once stocks start to break down, you create levels of resistance above where they're currently trading. the other thing right now is, of course, because of all of this, options have become a lot more expensive. and as we were saying, because we have upcoming earnings, that only adds to that. finally, the reason we typically use covered calls is to try to collect some premium when you own stocks, there's really only a handful of ways to make money the stock either goes higher or you collect dividends, maybe a combination of both, but when y

the way is passive investing is great on the way up in the etfs and everything is beautiful and bob pisani talks about it and we wax poetic pass seven great on the way up but when it becomes active and people are saying what's going on and people freak out, you see it manifest itself. and you saw it today i mean the market went down from down 300 to down 600 in a minute and a half you tell me that's normal. it's not. >> that's based on derisking quantitative stuff, the computer spetz out how much you have to deleverage and derisk. and the price of the market where you have to the derisk and derench. >> what turned it around then? if it's down like that on those factors what turned it around. >> it's almost like a rebalance. if you do it ahead of the game the level was 2719 in the cash if you broke that level it was supposed to trigger about 50 billion in notional s&p futures for sell as soon as it triggered we raled five handles lower than that we sold ahead of that to get to the level. >> that was the 100-day moving average. >> the 200 day but that's -- the 2719 level was where risk parit

i call them months in with the blanket pisani. a list sounds wrong lol. it's a number her of three lanes. wrong. so i still think all. that being a bearing thawing down on me again and it comes then goes say every night i went sent where let's double the thought count to send again maybe sun sun to build weeks and. sell the event maybe sun sun the reason. you. i would. say go look up old girl knows you're looking to win so say you're looking at some foreigners who. i want to sleep through to save you from korea warning not to eat. dog rats my. way. but we come to lisa's rug. but we still weren't carving she could have grown. up feeder falling down on me again and it comes. to every known way then when it comes to fighting around food stands in the movie sunset going to be so you can see me maybe sunset i will read something. you know her writing phone on loan me. again. soon. money. thank. both. of these staggering. those who know the bag on money that i found remains. fullerenes things turned out of the end i suspect it's. banned in the home when said st

we will speak to bob pisani and go to rick in chicago.s might be a chance to -- >> these are not cannabis-infused chuckles. >> they through is no cannabis. >> only 180 calories per package. >> who makes these >> a private company. i don't know the company, but i have to tell you it will take you a while to chew these. >> product of mexico. >> it's not nafta. when these are sir fu-- >> i'm more of a sour guy when it comes to these things. i like the sour patches. >> lemon heads. they make lemon heads, too. >> global economy right here. >> these are made in mexico. this is what the new trade agreement is all about. what are these made of >> corn syrup. >> synthetics. >>> financials that are really keeping the dow from sinking lower were down 75 points. let's get to bob pisani. >> edible chuckles. i am dying to watch you guys on edible chuckles. that will be a day i will watch that. here is the story. we have a news story that has evolved. the strength in the u.s. economy is creating a yield story here. th number one, yesterday the ism servi

bob pisani is watching where everything is moving >> hello, carl, we have a new story to talk about,like to talk new stories, a yield story. let's show you some of the issues the markets are dealing with it is not the only story but global bond yields are rising. that's the principal thing to move the market. we are seeing emerging market pressure, yields go up, that hurts emerging markets they had been rebounding recently and another secondary story about china worries, not just trade but tech spying stories, a data web service run by apple may have been subject to surveillance by chinese government they say it didn't happen, wasn't an issue. we don't know the answer it is effecting the maskt, t-- e market the whole faang complex is down 2% i mention emerging market, higher rates is generally a problem for emerging market. the eem, the benchmark is there, that's on the bottom chooin internet down, bras -- china net down, brazil, turkey what's up with rising yields big story, obvious story, we had strong data recently, not just u.s. services data but some data out today has been stro

let's bring in bob pisani.re being slaughtered. >> we are having a tough time of it i think the important thing is we're trying to figure out what the effects of higher interest rates are overall. the important thing is number one, today's market report is fairly neutral we are looking at the headline number below three month average, still good, revisions on the up side, 2.8% wage growth we would be dealing with a different story. and finally, i don't know how to look at the headline feds will look at the headline and start saying -- my opinion, this is not changing the path for higher rates that's the most important thing. >> there's the commentary over the double line saying he was watching the 30 year yield, which is something we watch but we really focus on the 10 year yield. on the 30 year, it moved off multi year lows. through important technical levels that seems to indicate to him that it is a glide path higher, and that paves the way could be trouble for companies that ever levered. >> bottom line, wh

bob pisani is tracking them at the new york stock exchange. >> hello, melissa.'re right, the small caps are up today i'll explain why in a minute but the key trade for the trade war story for months now has been go long small caps. go long the russell 2,000, because they are more insulated for these global trade wars. that's worked for a long time, but it hasn't worked in the last months, because fears that a trade war would really hurt the global economy have lessened here's the s&p 500 that's the white line in the last month and there's the russell 2000 wait a minute, the russell 2000 has been going down. this trade has been unwinding, because traders are less concerned about trade wars the s&p is up 1% and you can see this in small cap names, that you talk about every once in a while. the trend has been down here, riteaid, louisiana pacifics, lending tree, this is a broad swath of examples, but you get the drift. this is in the last month. the market in general in small caps have been moving down one reason we've moved around today. melissa hit it, the ten-ye

bob pisani on the floor of the new york stock exchange. kate rogers at the nasdaq tracking the tech wreck. seema mody at hq following the fallout from the slide in china and the rest of asia eamon javers in our nation's capital with the very latest on this possible meeting between president trump and china's president xi jinping let's go to bob pisani at the exchange to kick things off. bob. >> let's take a look at the s&p 500. i don't want to sound like pollyanna but they are actively attempting to buy the most beaten up sectors of the market. we're 25 -- 30 points off the lows that we had earlier this morning. i want to show you some etfs that are having very heavy volume these are badly beaten up sectors. semiconductors were down 4% at the open they went green briefly. banks down 2%, 3%. that went green. home builders, disaster in the last month or two. they also have gone green today. so take a look at the earnings situation. i know cat was a little bit of a disappointment, 3m an outright disappointment mcdonald's was fine here domesti

let's get to bob pisani on the floor. hi, bob. >> nice day, carl, with a number of two breakouts i say breakouts, i mean big cap tech stocks at new highs pharma is doing well in some cases historic highs apple is there, cisco is at a new high, united health, disney, merck is also there, microsoft is there, so we've got a broad swath of stocks hitting 52-week highs. another factor that's really helping? financials remember the complaining we've been doing that the banks keep lagging. not today. most of the big regional banks are all leading. the big money center banks also up but not as much it's really led by the regional banks. the trade war and it's cessation is the key to what's going on in the markets. so industrial stocks are trading on the upside. russell 2000 is underperforming. china stocks are outperforming today. and india is underperforming now, what does all of this mean? it means that the trade war trade that has been very prevalent for the last four months is starting to unwind and you're starting to see it

thank you for bringing that to us >>> meanwhile, is this sending the market a message bob pisani is withhe dow dips lower, near session lows, bob. what's the cost? >> what we're looking at is three problems number one, there are accelerating concerns about what's happening in china. morgan stanley wasn't helpful for the bulls when they put out a note saying we think auto sales are slowing in china ford volumes could be down 40% year over year, a startling nipple, i don't know how they came to that conclusion, seems pretty large to me china market down 30% for the year add another 3, 4% decline in china, fairly large numbers and have been continuing to go down this month china is number one. number two, the rate thing, back up at 3.20 or 3.21 on the ten year yield and then the question of margin pressures. industrials that you cover, look what is going on, sealed air, textron, they're talking about higher costs, weaker foreign currency, tariff issues, all of this generically translate into margin pressures you can see what's going on with industrials, they're all being hit. we've had reco

bob pisani is on the floor, looking at the key driver for stocks morgan following cat and 3 m ylan muiwashington watching the fed speakers, and mike santoli looking at the broader themes in the markets. let's begin with bob pisani and earnings we have gotten so far. >> the important thing, we are waiting for europe to close. every day we weaken going into european close, last five or six sessions we are in the lows there key story, budget refused, italian budget refused by european union spreads are widened there. sitting near lows of the day here in the u.s., sectors that are weakest on global concerns semi conductors, emerging markets and industrials are weak staples are flat and utilities just slightly to the down side. the key story about guidance, 3m was a disappointed, cut the full year guidance. utx maintained and caterpillar affirmed but it was below expectations where is the positives versus negative that's what the markets are trying to debate we have a lot of positive. strong economy, higher revenue, tax cuts reduced regulation overall that's what's moving the market early i

but, first, let's get to our reporters following the market bertha coombs in the nasdaq and bob pisani here with the key things investors need to watch ahead of earnings season bertha, let's start with you. >> reporter: precisely the issue. we are ahead of earnings season so no companies will come rushing out and giving you terribly good news or bucking the trend, the feeling that companies aren't going to be in there buying their stocks ahead of earnings either, so that is part of the issue. what we are seeing is much larger than normal volume in tech sells which tells you that there is more conviction in the selloff today, and it's being led particularly by the chip sector which is now down five days in a row. it is off about 15% from highs, and seeing the worst daily decline for the chip sector since june 25th which was also when we saw the big downdraft on the s&p 500. among the big volume losers today, the big caps that are dragging things lower, the usual suspects are there, netflix, amazon as well as microsoft. these have all been big winners for the most part. if you take a loo

that's true, bob bob pisani >>> and microsoft, alphabet, twitter, intel, a few of the tech names thatreported earnings this week we're going to take a look at the biggest winners. place, the xfinity xfi gateway. and it's strengthened by xfi pods, which plug in to extend the wifi even farther, past anything that stands in its way. ...well almost anything. leave no room behind with xfi pods. simple. easy. awesome. click or visit a retail store today. >>> wrapping up today with the losers far outpacing winners all lower for the week positive action for tesla. all of this will continue next week with apple, spotify, alibaba, gm, ge, got a jobs number friday. >> the trends we saw this week interesting to see which ones follow through some mixed messages. >> in terms what has worked versus what hasn't, the outperforming sectors, real estate, consumer staples and utilities. >> the worst run right now home depot close to an 11-month low as the flooring company had pretty miserable quarter let's get over to the judge. >>> i'm scott wapner is the correction now closer to running its course why

let's go to bob pisani on the floor. >> i don't normally like attributing weakness to market technicicals but when things move very fast and the market gets confused about what to do, traders will often abandon fundamentals and turn to technicals because it tells you what to do at least on a short term and when things break certain key levels, it tells you do something. either buy or sell about 3:00, 3:01, 3:02, we broke the prior lows of the day at 2691 and of course that was the lows for the month. and a lot of people felt that was important. when peopenough people feel a ne is important, when it doesn't hold, some will act on it and you will see another leg down. and that is what happened. often these magical numbers don't really materialize, but when it is important enough, it does and i think that was a factor in the most recent leg down with that said, we've seen sectors that are generally involved with global issues. so the semiconductor stocks, the material stocks have been weak consumer 125i7 r stap willing -e have held up better. and by oiotechs have high valuations so perh

nasdaq has a correction, facebook reversing the narrat e narrative, up following earnings our bob pisaniollowing the rally, dom chu with a look at valuations and what's been lost this month bertha coombs will give us an update from the nasdaq and julia tracking facebook. phil lebeau with gm shares sharply higher as well but we'll begin with bob pisani. >> it's been a lousy october but it's going out with a roar i want to show you the s&p 500, what's been happening the last few days we bottomed on monday and moved 118, 120 points since then the dow has moved 1,100 points since the bottom on monday the s&p is up 2.5% watch the beat and up groups when you see them bounce, that's when you start to see some stability, and we're getting it. since monday's close look at semi conductors up 6%. industrials up 4%. energy stocks up 4%. builders up 6% those are the beaten up sectors, outperforming good sign. metals and mining not really outperforming, that's the one underperformer faang stocks are up 2%, 3% so far this week. how about the month of november? are we going to get a better start to nove

thks >> ric edelman and our bob pisani still ahead, final trades. >>> welcome back to "fast money.hat's sweeter than honey in tony braxton don't break my heart. a big one for pete's honeywell pitch the time trade looser pete najarian what do you say. >> i'm going to caterpillar. it's going higher. too cheap. >> similar vain vein ag stocks. >> happy birthday to my husband. a little gm. >> happy birthday lawrence. >> lawrence apache comes out apa in the old days. >> see you back here >>> my mission is simple, to make you money i'm here to level the playing field for all investors. there is always a bull market somewhere and i promise to help you find it. "mad money" starts now >>> hey, i'm cramer. welcome to "mad money. welcome to -- my job is not just to entertain but to educate and teach you. call me or tweet me @jimcramer as we head into friday's incredibly important payroll report, you have to keep in mind that we have a real goldilocks

down 7% for the month. >> bob pisani at the nyse. what to we do? bad action. >> it's not great action people are just stepping away from it. i think the saudi arabia angle is interesting and going back to what goldman sachs does, you you think about it if there aren't a lot of venture capital investment what's the exit play for venture capital. it's banking ipo i've heard this from people in silicon valley that they are concerned. if you get less venture capital the investments there is less deals through the pipeline for goldman sachs. >> and there are data points we get real time, taiwan semiovernight. taiwan semihad issues, saying demand for the kmips one fifth of the revenue from apple. and then that's softening. >> i think the issue with semi conductors is that it's highly cyclical and we know there was a lot of pull-through from the first half of the year this is one of the reasons this group in particular did top out back in marni. we have seen the series of lower lows and lower highs if i look at the smh which touched 95 at the lows last th

back to you. >> thanks to bob pisani as well. michael, i want to come back to something you said the fed has been up front with us they've telegraphed it that doesn't necessarily have to have a great connotation to it the quarterback if he telegraphs a throw, he throws a pick. they seem too stubborn on what they're going to do. >> i think they're still fighting the history they had of always coming there with the easy answer and the easy cash when the market was down we're in a stronger economy. i think they're trying to show strength i do think that, you know, for old folks in the market, we always would say that it takes 12 to 18 months to see the effect of any monetary policy action to show up in the data. so could it -- would it make sense for the fed to stop after this december hike, let's go and make sure we have the data on which we can be dependent? that could make sense. and with eight meetings and a press conference every meeting back to mike santoli's point, i think there is some latitude for the fed, there is some fle

bob pisani at the nyse deja vu. but can you trust the bounce in and do you go in and do you buy? how do you know when the name is bombed out and bombed out value or bombed out for a reason >> well a couple of the names -- we talk about facebook -- you know why injury it's gone down but l brands, they didn't just go down. they've been a disaster. down 70% finishes the fourth quarter of 2015. because the core brandt victoria secret is struggling you saw vs turn a corner the comps are down 4.5%. came up plus one bath and body works is growing this is -- this reminds me of like a mattel. that's very different than the other names. the industrial names we talk about in all the time too. it's just hard to believe we started with that awful music, that song you play that at home. everything is awesome. >> now. >> up 1607 basis points today. and the show has been about the doubts it's crazy i think some of the names are overdone. >> your a value gal. >> i bought a little bit of cbs and it got away i bought bank of america which dan will be delighted about. ten times. >> i so get it liste

bob pisani at what point will bond yields be high enough to serve as a less risky option? 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 s

bob pisani on the floor of the new york stock exchange, steve liesman taking a deeper dive into latest read on the american economy, meg tirrell on the biotech beatdown courtney reagan will look at whether the crucial holiday season may be in trouble and we welcome "fast money" trader tim seymour, joining us for the next two hours. >> tyler. >> good to have you with us. lots to talk about let's begin with robert at the nyse bob? >> hello, tyler. you know, the important thing, we have had a 50-point rally in the s&p 500. i just want to put that up this would be extraordinary in that it's happened here and everybody's quite calm down here at the new york stock exchange really quite interesting now, several things happened all at once around 11:00 eastern time let me tell you about that midday reversal. first thing we saw is the dollar remember, the dollar's been rallying for a couple of weeks now. the dollar started dropping. things started turning around with that. the vix was near 28 and just simply collapsed it went down 27, 26, 25, now it's 23 and change volatility has dropped the pu

. >> bob pisani at the stock exchange -- check this out. i was going to say i'm shorter than you are now. i think i'm shorter than you in real life anyway. bob pisani sent out a note this morning saying the things that are positive for the markets in the last two years have been strong economy, higher revenues for companies amid-more profitability, tax cuts for corporations and reduced regulations. the negatives hitting us now are trade war, rising interest rates and global uncertainty, things slowing down in china, not being sured wh sure what getting into with saudi arabia will look like. what do you think my viewers should be looking at with volatility in the markets? >> for individual investors with a much longer-term time horizon than today, obviously, you don't much differently than you've done in the past. you commit to your discipline, you keep investing for your retirement if it's 10, 20, 30 years out. but you look for inflection points in the marketplace. we do have a growing number of head winds versus what we had in the past. as

rick santelli is here but let's start with bob pisani on the floor of the new york stock exchange >> yields have been popping, that's the starting to move the stock market the major issues affecting stops, melissa is right, global bond yields rising, not just u.s., a big issue here emerging markets are reemerging a little bit on that china issues, we have trade and tech spying issues, starting to affect our tech stocks and those general spying issues affecting stocks that are generically what we call the faang groups apple and amazon, these vague reports out of bloomberg recently that the data center run by amazon web services, apple, may have been subject to surveillance we don't have any confirmation of that, certainly not from the companies. you see what it's doing to the tech group overall interest rate sensitive stocks, rates go up, emerging markets move down. reits tend to move down. consumer staples also on the weak side. banks surprising, a bit flat china stocks have been weak all throughout the day here. more big moves down. they had started to stabilize a few days ago that

bob pisani at the new york stock exchange >> take a look at the sectors.t the day those are banks and financials in general and health care has held up well but, tech, communications services and industrials have faired differently tech led early on. very quickly started selling off. same with communication services and industrials. just let me show you amazon. the poster child that bailout in england introducing tax on digital services that was released this morning. i think that may have taken a little wind out of the sails but you see it's recovering a little bit meantime, one sector that is doing well amazon is lagging but its competitors are doing really well retailers high all throughout the day. macy's, dillard's and department stores do well see the chico's they've also been strong, too news on china helping autos, but in general, the most beaten up sectors that we have seen recently are autos and the home builder stocks or anything building related and generally throughout most of the day, auto stocks and building-related stuff has done fairly wel

. >> let's get to the market action and the selloff bob pisani, what are traders chatting about >> the are concerned about high rates but a lot of people feel the rates will go up for all the right reasons and are not worried. let's see what the market is doing now. let's look at the dough lw laggs big global tech names, big global industrial names. apple is 32% down minimally but one of the losers boeing is the second biggest gainer up 30%. these two names have benefited from the lessening of the trade tensions and boeing notably in the last month a little profit taking today. how about what's leading it's all defensive names, procter & gamble, pfizer, mcdonald's, coca-cola. what's going on here is this is a good old-fashioned let's go high and low volatility names and figure out what is going on next week. higher rates, higher costs killing the housing stocks new lows in lennar, mo hawk, whirlpool, anything housing related is having a big problem and that's where you're seeing new lows bottom line is i think rates are going up for right reason. we have record earnings 25% a shot at f

bob pisani puts it in perspective for us tonight. >> for months trade wars have beenhe t primary market focus focus but the mover was bond yields with rising rates marking concerns in the stock market. what's the deal with the rising yields we've been seeing? the first thing behind ist is the strong u.s. economic data. it's been building for a wewhil. ave had great numbers but data on the u.s. services sector coupled with the strong read on factory orders caused t yield on the u.s. 10-year treasury to up.t the federal reserve is signaling higher rates. the fed chair said accommodative policy is no longer appropriate in the current environme. while i adviced the markets nod to read too much into it. there is no doubt the fed is reading a stimulus. and trade war fierce are subsiding. bond yields have been on a modest upsing since the tensions simmered down in early september as they unloadde the t war fades. we have seen the stocks take a hit appear sectors have been down as theroer mathematic hit new highs. groups like home construction, real estate and utilities have been down the last

for "nightly business report," i'm bob a pisani the new york stock exchange. >>> with this recent dramatic rise in interest s rates,ere a model portfolio that could benefit from these risinte michael jones is with us tonight. he's chairman of river front investment group. he's got some ideas o. th thank you for joining us tonight. >> glad to be here. if you had to start from scratch as rat, rise he give us a sense broadly speaking, this is oroadly speaking not just every single individual investor out there, what kind of a mix would you sees for stoo bonds right now? >> well, i think that mix is changing in response to what's market.g in the bond if you look back over theast ten years, bonds have been very expensive. by the same token stocks have p. been very ch they've been offering great returns. our portfolios have had an over weight to stocks for 10 to 15% and we've taken that money out of bonds. as you look at what's happening right now with interest rates starting to rise and equity markets getting high enough that they're starting to tip into over value territory, now's a good time

for nightly business report, i'm bob pisani at the new york stock exchange. >> bob just mentioned tech and internet stocks. as you know that group helped ke lead the m higher most of the year. but they've den taken a tumble in october. netflix, amazon be facebook and google all down sharply. and now it seems thatig ther you climb the faster you fall. dominic chu has more on tech's sharp steep decline >>gne of the most concern aspects of the recent downtrend is the underperformance ofey certainechnology and communications services stocks. namely the fangs. that is to say facebook, amazon, netflix andle parent company alphabet. as the major u.s. sees indices have the worst october since 2008, these are among the stocks moving marketshe most. each of enemy is underperforming the broader s&p 500 so far this month. they also happen to be some of companies in bl the market which means they have a lot more influence on valted indexes like the s&p 500 and nasdaqomposite. over the course of the last few years these stocks led the market higher, pushing not just the values to high levels but the

industrials melting down this week for more on that let's get to bob pisani at the new york stock exchanget >> hi, scott industrials suffered more than most sectors with good reason. they are exposed to most of the issues that are most worrying investors. let's run down the checklist of worries. higher rates, check. higher raw material costs, check. stronger dollar and weaker foreign currencies, check. tariffs, check potentially weaker chinese economy, for many industrials check again. little wonder they are the worst performers in the latest downturn, down 8% since the turmoil began last week. that's worse than technology down 7%, financials down 6% and far worse than health care and consumer staples a lot of the biggest names have had larger declines with dow components caterpillar and boeing down. 3-m down eaton, lock heheed martin. then cancelled flights due to hurricanes and worries about capacity have combined to make it a miserable year for airline investors, even as consumers travel more than ever. back to you. >> thank you, bob. if you own big industrial names how do you protect y

bob pisani tries to answer that. >>> strong earning may not be enough to calm the market until the higher yields are resolved. 80% ofhe companies are beating earnings. earnings growth is 22% terrific. expected tonu con into the fourth quarter but it's not shifting because the markets shifted to rates and swing grow in china. macroissue. the main risk is rising rates on the back of strong u.s. economic data therefore the market comes down if the market believes first ten-year yields are not rising too much more say 3 process.5% and second that the federal reserve is not looking to rse rates as aggressively as some traders believe. in other wds taking out the words accommodative from the policy statements, doesn't mean the fed is going to keep hiking for years. they'll certainly not accelerate the gradual pat to rate hikes. the market needs to believe that. it doesn't. .market lls are pushing back on the interpretation. arguing that beyond the housing market the modestly high rates we see are not a huge drag on the u.s. economy. a we haveady seen attempts to buy beaten up housing stocks for

as bob pisani reports that could bring a new set of ris to the market. >> it was a sea of red on wall street today, the dow plunging more tn 800 points. the worst one-day drop since february. rising rates continue to fuel fears in the stock market. but some believe investors will look past higher ratesf the corporate earnings picture remains strong. that starts on friday.se earnings on. right now the earnings picture, well let's say it's getting more complicated than it used to be. investors are dating the impact of pennsylvania large number ofia ves, higher rates, but higher raw material costs, weaker foreign currencies, tariffs and even potentially weaker demand from chin one thinor sure, investor focus is shifting away from the third and even the fourth quarter earnings and toward 2019 projections. what are the major issues toh wan first margin erosion. that's the most important. that's mainly driven by higher costs, wages and raw materials, amazon's ni$15 m wage hike won't effect third or fourth quarter eriks bt has everyone scrambling to figure out the impact on other industries.

best week for the stock since 2009 as it looks like investors finally believe in a turn around bob pisani has more on the floor of the nyse. hi, bob. >> hi, melissa is this a bottom for gep it's up 17% this week after hitting the lowest two weeks ago investors cheered the aamodt of larry kulp he says it's not irreparable damaged. he has had a sterling reputation at dannaher. earnings activity has been strong since the appointment some investors may see a floor in shares. now to give him wiggle room, the company did some housecleaning they nounlzed free cash flow and earnings will fall short of previous guidance due to weaker performance in the power division in the wake of acquisition of french company in 2006 still plenty of issues for the new ceo. the 12 cent quarterly dividend, 3.7% yield, sweeping up almost all of the discretionary cash can they keep it there and the pension issue, $34 billion pretax short fall at the enof 201737 mr. kulp has a big incentive. the new pay package gives him $21 in salary bonuses and stock the next four years. but if the stock is up more than 50%, he cou

bob pisani is here on the floor of the nyse.first to you. >> off the highs, 56 points in the dow. no matter. we've moved 1,100 points in the dow jones industrials since the bottom on monday, 1,100 points let me show you the big gainers, again, from the bottom on monday of course, industrials had been a big loser this month and caterpillar came roaring back. 9% since the lows. financials with an ugly month and goldman up 8%. decent not as much of a selloff in the pharmaceuticals and merck rallied nicely and pfizer a horrible month for the home builders and anything home-related and home depot is moving chevron is okay. i would like to see a little more movement from the energy stocks and given the weakness in oil. here's the important thing, the vix has been dropping all throughout the last couple of days look at that down two points. that's very important because we've been highlighting that the cash contract have much higher than the futures contract. that's a tine that traders are freaked out about the momentment that we've be

bob pisani has more on the selloff. >> rising rates were once again the big driver of the declines. the markets digested the jobs report which showed that overall job gains remain strong. wages are still growing at a solid pace. and the unemployment rate fell to the lowest level in almost 50 years. that's amazing. that's all good news for american workers. but all the positive economic data this week sparked a rapid spike in bon yields and that stokes fierce in the stock market. big global industrial names like bok and caterpillar with were the laggards along with apple down 2%. but remember apple and boeing are up 30% for the carrier. on the flipside the big winners were safer defense every names. proctor and gamble, fiez we are mcdonald's, coca-cola. this is called a flight to safety trade. that happens on days like today. tech overall was another big decliner. the nasdaq having the worst week in more than a month. higher costs and higher rates have been crushing the housing stocks. poulty ablennar and matco hit 52-weekly lows but some arpg there shun abpanic for ray rates are ris

bob pisani at the new york stock exchange if you own any of the names how could you protect yourselfrom losses let's kick it over to mike with his call to action on ba that's boeing mike. >> i was looking at boeing and we are seating a setup in the market to do this kind of a trade which we are looking at right now, a covered call in a lot of stocks. the first thing i would talk about here is resistance there hasn't been much resistance for many stocks but i think there might be once stocks break down you create levels of resistance above where they currently trade. the other thing now is of course because of all this options have become more expensive. as we were saying in the first block also because of the upcoming earnings that adds to that and finally the reason we typically use covered call ises to collect premium petition you own stocks there is only a handful of ways to make money. stock goes higher or collect divides but with options you have the opportunity to take in some premium when you sell upside calls specifically i was looking to december looking at 37 a calls collec

despite all the doom and gloom there were a few surprising bright spots in the week in this market bob pisani at the new york stock exchange with a look at them hey, po bob. >> hello, mels aire. not a lot of bright spots but we love mo town we had retailer like aber kronl. gap strong as well macy's up fractionally on the week the automotive stock, my heaven as whoosh in buying in the everything from group one automotive gm and ford moved up mid-single digits amazing. the home building stocks, another group had the stuffing beaten out of it a comparatively strong week. good earnings from pulte toll lennar dr horton into the green. volume especiallily heavy in the home building group. they were buying home builders like crazy at the bottom of the morning. the volume was huenink that has traders kplangs complaining. why? because traders want to see a tradeable bottom that's what they want. when is it over had? they don't see the signs they think the sentiment is still too positive pointing to the huge rally the s&p rose 60 points in the middle of the day. the conventional wisdom is the economy i

art, you say you are bullish on stocks even though as bob pisani just pointed out, 60% of the stocks in the s&p are in correction territory. that's good enough for me to call it a correction. >> sure. and corrections are normal that's one thing we have forget. we're going through that right now. i think the drivers are probably being misinterpreted a little bit in terms of what the biggest driver is. what is happening now is we got through nafta 2.0 and made an assumption we would turn to china and start negotiating that and that's not happening we're escalating with china. that is going to show up in -- >> you got two really big items there. you've got the potential for a real economic war, with the number two economy in the world, and rising interest rates, you say, nancy, that the market is recalibrating right now. how are you recalibrating your holdings >> i see some really attractive valuations that we're taking a look at. we have been adding to some of the consumer discretionary name -- >> like? >> home depot and mcdonald's, those are both stocks that are negatively correlated

. >> let's get to bob pisani now on the floor we got a lot more moving today, bob, take it away. >> it of a flat open, that lies the drama underneath all this we are figuring out what's the meaning. i will make it simple for you. the only thing that anybody cares about is this going to change the rate hike pass for the federal reserve. are we going to get more or less it was confusing because the job growth month over month was weaker, some say it was damped due to the hurricane we had big revisions in the prior three months the trend is still strong. wage growth is the key issue, 2.8%, that was in long a little strong but not eye popping and not 2.9 or 3.0 but sort of in the middle. lowest since 1969, that's a headline and everybody is trying to say okay, how is the fed going react to that number lowest since 1969. the bottom line is the streets are confused of how to interpret this you want to look at the futures, i will show you, we move in the 18 or 17 points range. that shows up or down positive or negative. that's why we are getting the relatively flat open take a lookt t at the