dow,e open, we have the s&p, and the nasdaq higher by more than 1%.t is similar to what we saw on tuesday. not quite as frenzied as what we saw on tuesday, but nonetheless, sharp snap back after yesterday. the dow down more than 1000 points. lots of uncertainty and volatility. as he happened to the bloomberg and look at the s&p 500, futures overnight into today, the trading action, we are going to see this story. teachers had been higher, higher, -- futures had been higher, higher, higher command and lower. we have seen these whipsaws around the week. what is next for stocks on this correction -- officially yesterday, not so much right now -- but on this correction that seems to have come out of nowhere. is the factf pain that the major averages have been overbought. perhaps stocks went too far, too fast. .his is g #btv 3006 this is in relation to the .00-day moving average a rising signals that the buyers are in control. a big move up, especially at the end of last year. the idea that too far, too fast. 100-day movinge average. the last time we saw t

with the exception of this time 2015-2016, more recently the s&p 500 well above the 200 a moving averageinvestors were really buying stocks hand over fist. complacent in attitude. ,he s&p 500 at the highest above the 200 day average by about 15%. the last time we saw that in 2001. and then we saw the s&p 500 go well below the s&p 200 day moving average by about 15%. in 2011, that was a correction and a bear market for some indexes that came out of nowhere with overbought territory and sentiment. it corrected down. above the00 just 2% 200 day moving average and if the s&p 500 does what it did in 2011 or anything similar, it suggests a 14% drop lower to about 2300 or lower. this chart and overbought conditions that led to the selloff we see now suggest there is more downside to come. individual movers, something stands out, amazon and facebook, the biggest point drags on the s&p 500, nothing has changed, high-quality companies with good earnings but investors are selling them. a tell that this selloff is driven by sentiment. cboe with a disappointing earnings report and chesapeake down sof

moody's says the u.s.'s long-term aaa rating could face downward pressure due to slowing national debt and whiting budget doesn't visit -- deficit. this will a road the u.s.'s fiscal position without further cost reduction measures. this comes as a two-year budget agreement was signed to raise federal spending by $300 billion. leanne air john paulson is moving his hedge fund to the steinway offices later this year. aulson shocked the family decade ago with the bet that the housing market would collapse. his firm has seen assets and had quote -- headcount lindell this year. purchased steinway in 2013. that is your business flash update. trump may havet signed his two-year budget bill, ending a brief shutdown, but what next? the council of economic advisers ways in. this is bloomberg. ♪ from bloomberg world headquarters in midtown manhattan, this is bloomberg markets. i'm scarlet fu. when we look at where stocks are trading with 90 minutes left to go in the session, we can see the indexes have gone right back

into the 2000's. (soft music) the price of oil when hugo chavez took power in 1998 was less than $10. it eventually reached, i think in 2005 and 2006 $140. that's a tremendous bonanza. chile was growing, peru was growing, venezuela was growing. those aren't leftist governments, but then you had ecuador also oil dependent. leftist government rafael correa was growing evo morales in bolivia who was elected 2005, came in in 2006 also country started to grow. - you had about 50 million people who came out of poverty and into the middle class as a result not only of the commodities boom, but also of the smart financial policies. - and as you moved into the mid 2000's what you really saw was the idea that you should have growth and social inclusion all at the same time. and i think that is something that has been a broad based cry. you've got to have growth with social inclusion. and that is something which is universal across latin america. (soft music) - [narrator] the commodities bubble eventually burst r

the s&p is down 30 points. e nasdaq down 30 points as well looking at about a third of a percent down for the nasdaq. a percent down for the s&p the best part of 2% down for the dow. let's bring in joe lavorge and daniel demarti danielle di mar te dimartino boh >> i think there was an overreaction on friday to the wage inflation number. there was a decline in the length of the work week that largely offset that. i have been intrigued over the past 24 hours or so to see the major pullback in bond yields. there's not much talking about given to that. at one point when futures were down at their lowest point overnight, we saw that the 30-year dip below 3%, the two-year below 2%. that will complicate matters for jay powell he wants the markets to stay on the pathway of at least three rate hikes this year >> joe, we talked about interest rates being a spark for the telloff. do you think fed expectations for rate hikes have changed and is that justified? >> they have, and they will if this stock market correction cont

on average over one month the s&p makes about 70 basis points. hree months it averages about 1.7% if you buy it when the vix is over 0 the one month average return is 1.7% and the three month average return is 5.5% you have a higher probability that it's going to be up and the amount that you make on average is also higher the one caveat i would throw out there, though, of course, is that during the credit crisis the vix went over 30 so you also saw the instances that were the worst one month and three month returns in the s&p during that period you have to ask yourself, do you think this is just a pullback, a temporary correction, or is it something like the credit crisis. >> i don't think it's like the credit crisis. i think we are likely to have a one and three month bounce here. >> what do you think about this spike? it's been an incredible spike, out of nowhere, too. >> i think mike mentioned that period in 2015678 i think it's important to recover, we did recover, and then we failed again in september we had another in 2015. we had a double

you mean the s&p? peter: the s&p. thank you so much for joining us, peter cecchini of cantor fitzgerald. let's get to the first word news this afternoon. will nowsident trump have to decide whether to release another memo from the house intelligence committee. this one comes from democratic members. imsounters republicans' cla of misconduct by the fbi in the rush investigation. -- rush investigation. -- the russia investigation. merkel needs the green light from the social democrats to begin a fourth term. the party says everyone wants a solution but negotiations are contentious. poland's president says he will sign into law a controversial proposal to outlaw blaming poland as the nation for crimes committed by nazi germany during the holocaust. speaking in warsaw, the president said he will ask the country's constitution court to evaluate the bill, the radically that theoretically opening the way for parliament to amend it. jacob zuma will not give the state of the nation address in parliament -- parliament officials

is the only index on the s&p 500 gaining ground. is is boomer. ♪ -- this is bloomberg. ♪ shery: this is "bloomberg markets: balance of power to go power."nc eof david: let's go to mark crumpton for the first word news. nancy pelosi emphasized her objection to the bill's lack of language on immigration. unprecedented eight hour speech yes -- yesterday. some conservatives are opposed because the bill increases domestic spending. he has thehinks votes for passage. house chiefs of staff says president trump's twitter habit is distracting. they would tell them to stop if they were there. that is according to the "washington post." when calls mr. trump's tweets political gasoline. one calls mr. trump's tweets political gasoline. the other says the tweets have the ability to walk back a lot of hard-fought progress. the south korean president think the united states for its support it took the opportunity to highlight the visit of north korean officials to the games. the spokesman for president moon later confirmed he plans to meet kim jong-

the s&p 500, only three sectors of 11 in the green.iscretionary and shares gaining ground. the nasdaq is also remaining unchanged at the moment. tradinga touch higher, at around $37. we continue to see the selloff accelerating in the afternoon session. more "bloomberg markets" coming up. live from new york, this is bloomberg. ♪ we use our phones and computers the same way these days. so why do we pay to have a phone connected when we're already paying for internet? shouldn't it all just be one thing? that's why xfinity mobile comes with your internet. you can get 5 lines of talk and text included at no extra cost. so all you pay for is data. choose by the gig or unlimited. and now, get a $200 prepaid card when you buy an iphone. it's a new kind of network designed to save you money. call, visit, or go to xfnitymobile.com. scarlet: it is 2:00 p.m. in new york and 7:00 p.m. in london. welcome to "bloomberg markets." scarlet: we are live in new york over the next hour. fluctuating after a to morning that's all the s&p 500 plunged 2.1% at

i look at the s&p. this is where i start from what is the s&p made up of 500 companies. on average are growing about 5%. they have a dividend yield of about 2% sell around three times book value. they have debt to capital around 35% and for that wonderful collection of financial statistic, i was pegged 18 times earnings i'm trying to find more growth or earnings and yield, more underlying asset value at a more attractive price and when i look at my top 25, we've done it. as long as we're right on the asumtss behind each of these securities >> it's interesting. i believe when we spoke to you last before the end of the year, i think you told me at that time if i remember correctly and correct me if i'm wrong, that you thought oil was going to go to 60. it's turned out to be a good call and then some so where do you think oil goes from here and how that relates to the energy plays that you have and your outlook for for that sector? >> basically, we look for a guy, companies that have good production profiles. and would benefit from rising oil price, which they will to varyi

and if you can imagine, the house was built in the 1890's. we're opening it up in the 1940's. in that first summer that the house was opened, tens of thousands of people came to see it, because everybody was curious to see a house as big as the breakers. and it is amazing to me to think that today, i wonder if, when they conceived this idea in the 1940's, did they have any idea that by 2017, more than 21 million people would walk through the doors of the breakers? i doubt that they had that vision, but certainly all of us have benefited, because of their great act. and then in the early 1970's, the preservation society had the opportunity to buy the house from the vanderbilt family. we bought it at market value, and it has been in our loving care ever since then. and it's an enormous house as you can see to take care of. we do the very best we can. this painting is of cornelius vanderbilt. it is the only john singer sargent portrait anywhere newport. the preservation society had the unbelievable fortune several years ago of acquiring this portrait that was painted in 1890. and

the s&p 500 is down 3 points yesterday we ended up with declines, the dow down 0.7 s&p down 0.5 the nasdaqown 0.2% investors focused on the fed minutes and decided they were slightly hawkish focusing on further policy tightening moving forward the dow and s&p down more than 1 % for the week treasury yields has been a factor we did see them rise yesterday the ten-year high yesterday was 2.957% we're below that level at 2.924% certainly we've seen yields rise over the last couple of sessions >>> joining us now is guy steere from socgen. your take yesterday on the minutes? did it alter your forecast for how many rate hikes we'll see for the year >> it didn't because we've been relatively pessimistic in terms of the direction of bond yields. in terms of rate hikes, we're still expecting three, which is maybe the market is jittering between three and four at the moment the bigger question is with these minutes we have the word further, prior to the minutes people expected the 2020 dot to be the terminal rate in terms of the fed rate hike expectations now people are wondering if there are not fu

the s&p down 98. the ten-year yield because that's where we saw a decline in the yield down about ten basis points as they were selling stocks, they were buying bonds bob pisani is here with a special guest. a guy who's been watching this market very carefully. the president of the new york stock exchange, tom farley. >> everyone is asking, what exactly happened you're watching the systems. tell us how they run. >> was it a fat finger >> it's an extraordinary day we don't have a lot of days like this, as you know. when we have these days, and they do happen, we just make sure the systems are working smoothly the good news about today is it has been remarkably smooth we haven't had on the new york stock exchange we haven't had a single luld. >> stock down -- >> a stock that moved in such a disorderly process that we had to limit it. we did get close to a marketwide circuit breaker. >> that is 7%. >> we were down by 5%. we practiced for this. we're aware these can happen and the industry is prepared for

the s&p sank more than 5%. bright spots were nike, under armour tjx and best buy daniel, you're looking at a different name >> yeah, so walmart. this is interesting. we talked about a dow stocks a $300 billion market cap. now we're talking about walmart. one of the best performing snox the market last year up over 40% or so. when you think about what is going on with walmart, yeah, it had a 12% drawdown peak to trough that was in line with the dow. we had a dramatic selloff from strength and just that posed to the exxon. already a weak chart it fell apart. this was one where i think you want to start focusing on the fundamentals a little bit. this company reported their q-3 in november, the stock had an 11% gap. they had the best same-store sales in nearly a decade good growth off a low base in the online sales grocery is making up a huge part of their sales that is doing very well. this company will report on february 20th. look at it after the stock has just kind of had about a 10, 11% selloff. it recovered a

the s&p and the nasdaq, with a trading range in the s&p 500, swung back to the market. they really hadn't been there in the past year. you see a clear up trend in the average in terms of the swings in the points in the s&p 500. this as we watch the vix today go to its highest since november 4 of 2016. the worst performing group today, speaking of a return to volatility, the s&p 500 volatility index. we are definitely seeing a risk off scenario that has to do with what's going on with the earnings from these companies. hass becomes the latest to report a wider than estimated loss. you can see that it's down 5% of natural gas prices falling. on a forecast for warmer weather in the second half of february. it's not necessarily here right now. pete energy being pushed by that . ,xxon mobil, incredible decline as a large-cap company it doesn't tend to move around a lot, but it is falling again after the disappointing earnings report from last week. what is also fascinating about the declines we are seeing is that they are coming despite relative strength in large-cap technol

at the moment we have 166 in the s&p 500 that are positive. ple, amazon, and home depot are among them. vix.ve to talk about the the volatility index is so important to the story that we have been telling. it has been bouncing around today as well. at the moment, and those words are very important, it is at 37. still at elevated levels. very interesting 2 days in the market. i'm curious as to how much of this was an isolated volatility event and how much will be felt in the wider markets. i do not think that you can characterize it as an isolated event. i think it had been growing on the market for a couple of weeks. my view, markets began to be afraid that the january narrative of strong growth and moderate inflation was strong. they sound very poor productivity and high labor costs. the fed casually talking about 4 hikes instead of 2 or 3. that left them questioning what the upside of the equity market was. vonnie: people are in and out like a euros. .hey are seat -- like yo-yos they are seeing opportunities. when this is over are we back to

the s&p 500 also down. it less, about 1.1% the nasdaq, tech heavy, also suffering a little bit disproportionately compared to the s & p. down 1.4%. almost 1.5%. moving around quite a bit this morning. speaking of tech, despite strong sales for games like nba 2k '18 and grand theft auto, take-two interactive is down 8% after the video game maker reported quarterly revenue below forecasts. but also strong guidance and profits. joining us now here at post nine, take-two clahairman strau zelnick. quite an extreme reaction after that report. what do you think? >> i think we never argue with the market we do the very best job we can we're super proud of our results. our net bookings were at the high end of our guidance range obviously, management reporting profits were exceedingly high. exceeded consensus and guidance and got it up for the year we had a great quarter and nba 2k is the number one tight until 2017, up 25% year over year. spending on the title was up 30% in the quarter and our standard-bearer grand t

the s&p 500 is down 1.7%. als and consumer are losses,y stocks and they are sending investors back to risk-free assets. the 10 year yield at 2.82%. let's get to the first word news with mark crumpton. president trump says faith is central to american life and liberty. the president made his comments during the annual national prayer breakfast. able tocans who are live by their convictions, to speak openly of their face, and to teach their children what is right. families thrive, communities flourish, and our nation can achieve anything. aboutthe president spoke "the power of god's love" in americans, particularly during the response to recent hurricanes and mass shootings. secretaryhouse staff has his last day on the job. he said he would resign after reports surfaced that he had emotionally and physically abused his ex-wives. senior white house aides knew about the domestic violence allegations. he had denied the claims. construction workers on the israeli side of the country's border with women were seen sett

it is in the 40's and temperatures stay in the 40's dropping in the lower 40 's by 10:00 a.m. and not going anywhere. many spots could be in the upper 30's tomorrow afternoon, cold rain, and this front justin to bring us problems, tamp, dreary pattern is the story, periods of rain next four days, one to 3 inches of rainfall by late sunday, that does not sound great. 55 degrees overnight. that will end up being the official high tomorrow, and whatever we hit at midnight is high because temperatures drop all day. midday will be in the 40's with rain, friday, chilly, damp another round of rain late saturday into sunday. weekend not as cold, rainy but in the 60's and next week looks nice again. >> okay. >> okay. >> thanks, kate. >> don's up next with sports. >> pretty big story, talking about the birds taking within for the team how alshon jeffery played through the pain. >>> plus recess is over, time to get ready for second semester how sixers are preparing for a playoff run next in sports. >>> some people questioned alshon jeffery's toughness no one in philadelphia will ever have

that was it in it line with the s&p and dow. we have a pretty dramatic sell-off from strength and then juxtaposed to exxon. this isn't one where i think you want to focusing on fundamentals when this company reported the q 3 on november 16, the stock had 11% gap. best store sales in naturalearl decade groceries making up a huge part of their sales that's doing very well this company's going to report on february 20th i think it makes sense to look at it after the stock at a 10%, 11% sell-off recovered a little bit today, to me what's interesting is they just showed that chart there is a gap of about $95. that's what you want to mind to the down side. we have another chart. like most things, in this market we've seen a massive spike this is a really hard one to do from long premium stand point. you may get the direction right, but you may have the wrong trade with options so i want to look at something i know mike does this a whole heck of a lot short premium trade. i want to look out to the expiration it was trading about $100 do

in the 1980's. making democratic capitalism work at home and making social democracy abroad was a astounding achievement of western statesmen, accomplished mostly by enlarging and recalibrating again and again the role of government in domestic life. after the cold war, u.s. foreign-policy did not change a great deal. in a controversial essay in this volume, i argue that 9/11 did not transform u.s. foreign-policy as many observers argued at the time. wanting a balance of power in favor of freedom, as george w bush insisted was his policy goal, was not very different than wanting a preponderance of power at the beginning of the cold war. seeking a democratic peace was not new. nor were preventative and unilateral actions to achieve vital interests. these had gone on for a long time. in my essay, i show how fear, power, interest, and values interacted in complicated ways to shape the global war on terror. in addressing the evolution of u.s. foreign-policy, like most historians, i'm interested in contin

the dow and s&p 500 down 2.7%. aded through the low of the session. 24, two 110.ading we are just above it. we will continue to watch that as well. at what isa look going on as far as the broader market. picture.s a global you can see the bright red in the united states indicates how steep a decline it is. green.re some spots of india and japan overnight. the selling resumed in the night states after a move lower into yesterday's close. >> the european markets took their cue from the weakness that came later. and the close for the european market, very weak. down 2.6% for the german markets. plenty more to come including updates on these markets. from new york, this is bloomberg. ♪ julia: this is bloomberg markets. scarlet: time for the bloomberg business flash. parker, canada goes following for the most since it went public last year. they declined to give an annual forecast and named a new cfo. investment bank allocated the bonuses to its younger employees as competition continues to heat up. the strategy is simil

we had this mini double bottom in the futures and in the s&p. ten you do revisit a level having plunged to it but in terms of technical, to have a tail, plunge low and close on the high. the reality is that you have a ka pit you laer to type of behavior that gives way to big i think the goal posts have been set. >> when you broke it, even for a couple of handle inside the s&p, how important is that that we broke it or that just an overshoot for you? >> that's nothing, you are talking about fractions within the context of a huge number which is the aggregate. >> sometimes you say if you break that, grasso, you talk about the technicals, if you break those key levels okay then you could go down to x and test that. >> right. >> the fact that we bounced above it. >> that's important. >> is the wholly more bullish signal. >> buyers stood up, came in at the lows versus closing on the low. that's what we did the week prior. closed on the friday low and came in and puked monday. >> what sectors look the best technical. >> i'm in the favored growth i'm no

the looks at the volume of s&p 500. ottom you have a time segment. ,t has been in -- been running but has really spiked in the past half hour or so. boy at this moment is running at about 40% above the morning average. of green onglamour the screen at this point. energies and financials each fell by 4% friday. looking at stake today declines and as gina was talking, at least in does -- these two cases, a lot of comes back to the idea of earnings. health care, the amazon concern has beene last week performing ever since, so really you have this sector wide decline we are seeing in with it comes the spike and volatility we have been watching. i'm not sure where we are this moment, but you have the fix on the top here. we are spiking above 30 today to around 35. as we see this decline, here is the percentage change. in stocks thatke is now at a correction. >> as julie was talking, if you do it in percentage terms, 96% increase today is the biggest one-day move ever. >> the have to kind of reassess what you're positions are.

still with this loss of 605 points, for the s&p up 29% and losing 53 points today. us a sense, tim, of the addressing the concerns here? >> i think a combination of a market that was very, very extended. a tremendous amount of stocks. well above 50 or 200-day moving averages, and a lot right in the middle of earnings season so if earnings are absolutely perfect, investors are going to take profits. you're seeing that in the big tech names, seeing that in exxon and chevron today, and the way the markets work in today's world is once you get strong momentum one way or another toward the end of the day, the opposite side of that trade might -- you know, is going to walk away. we don't necessarily have to be the first one to buy the dip. see where things stabilize a bit. liz: goldman sachs down 4.33. charlie, you said in previous hit, earnings are the mother's milk of this market. tim said it, chevron and exxon, exxon is getting crushed and chevron not doing much better. that has to trigger into the psychology and the fear factor of the market. >> by the way, they weren

the s&p 500 and the dow and the stoxx 600 and the vix right now -- the s&p is up .5%. e dow up .4%. still negative in europe and the vix is slowly coming in after a wild day yesterday. what is next for investors? we are joined by erik schatzker. we know that volatility is a major input into a bunch of strategies, might be responsible for $1 trillion outstanding. what we saw yesterday was just the beginning of what we could see. erik: that is the question. to understand what comes next, we have to understand better what happened yesterday. the two words that best describe what happened yesterday -- never before. yesterday's 20 point move in the mix was, totally unprecedented. we have built a chart together that illustrates this point. the magnitude of a 20 point move in the vix was theoretically not possible. if you look at the distribution of data over the last 10 years, this shows the distribution of differences in the vix from one day to the next going back to before the financial crisis. in 20 point move according to that model, not possible. when theoretically impos

the s&p breaking its 100-day moving average with today's drop the dow and s&p once again are negative now for the year. the tech-heavy nasdaq only slightly positive. michelle >> i'm michelle caruso-cabrera thank you, brian let's drill down into the

up 10 on the s&p. including a community lining the streets to pay respects to a deputy killed in line of deputy. my click were shot and killed investigating a stolen vehicle. the suspect shot and killed at the scene described as an outstanding detected by those who knew him. these behind his wife and 7-year-old twins. the drunk driver accused of killing cold wind talker edwin jackson twice has been diverted. 37-year-old man while sophia is a citizen of auto mall and gave officers a fake name following the sunday accident. investigators say he is in the u.s. illegally in 07 and nine. super bowl 50 to more than 103 million people watched the game, but it was down 7% from last year. nbc did report a record streaming audio with part of the broadcast. this year's super bowl rings as the 10th most watched program behind eight other super bowls. there you go. i'm a little bit but we give you is. lauren: yes we do in perspective of politics because president trump has never shied away from touting the markets

a lot of classes on the 1960's and a lot on the 1980's. at the same time, you know not of attention is given to 1968. victor: that's why would this book. >> you just asked and answered my question. victor: a little secret, i probably read every 1968 in 1969 book that came out. i kept thinking, and in one of my previous books is about teenagers from the 1960's. there were all of these cool things happening in 1967 when i was doing my research good i wanted to steal some ideas from someone who had written in 1967 book and they did not exist. i talked to my publishers and they looked around and said, go ahead. ng aspect. marketi victor: i am no marketing genius that i said, i think any year in the 1960's -- and by the way, hint, there is not much on 1963. there are so many events and there's not much on 1964 and 1963. >> those of us that teach about decades, we start to think about when the decade begins, people say that the 50's ended in november of 1963, there are a lot of discussions. i wonder if you think that the 60's ended in 1967. victo

and the s&p 500 finished the week with a gain of 38. however, for the week, all the indexes were down more than 5%. >> that's it for us tonight. i'm sue herera. thank you for joining us. >> i'm tyler mathisen, have a great weekend, everyone. you deserve it. we'll see you on monday. >> this is "bbc world news america." funding of this presentation is made possible by the freeman foundation, and kovler foundation, pursuing solutions for america's neglected needs. >> planning a vacation escape that is relaxing, inviting, and exciting is a lot easier than you think. you can find it here in aruba. families, couples, and friends can all find their escape on the island with warm, sunny days, coing trade winds, and the crystal blue caribbean sea. nonstop flights are available from mosmajor airports.

the s&p at its lowest since the middle of november.he volatility index is more than doubled. 10 year treasuries really -- retreating. and oil falls to its lowest of news of driven by record production in u.s. fields. hello from sydney where it is just past 9:00 a.m. this is "daybreak australia." >> and it is just past 5:00 in new york. -- we areking at how looking at the action on wall street. look at this. correction -- yes, it is official. he s&p 500 down to percent from its january 26 high. dow, down more than 4%. the nasdaq is down nearly 4%. 23.9%. 3.9%. and of course, bond yields ticked higher today. stocks fell. it is the same thing. president bill dudley from the new york fed, he said that markets are repricing. central banks are also moving tightening. and the bank of england made a statement about needing to properly raise rates a little more aggressively and a little faster. >> you really have to question the bravery of people. a lot of people are saying it is too early to get in. selloff overnight suggests the fragility of

it is the hottest stock in the last two year of the s&p 500 thirds it reports on thursday. e is a lot of money in it. people are saying that can be the coil springs that reignite the markets. >> the next thing you know it went down to 180 if you are looking at nvidia and you want to play so to speak and even in a blow out quarter, it got hit. people want to buy something ahead of a quarter i say be careful even when you are right, you can lose money and nvidia. >> well, he position that company. >> allan iverson sorry, i meant intelligence. >> machine learning and crypto counter currency >> i would say jp morgan it is up so much and it has not come down much again, i want to remind people that -- the only time it exceeded that in the last three years have been phenomenal buying opportunity they did not actually happen that moment. that could be this time. the xiv and the pressure is going to put at the opening. be ware the xpx at the opening should be paid for there are margin calls that happen later karen cramer's old rule and you have to wait for it. >> any sense to what h

on the s&p the big winner was aes while autozone dropped 11% to make it a big loser a rally down as well mike, real quickly, even though a lot of the weakness occurred much later than the original selloff, do we still tie it back to testimony from powell >> the testimony from powell obviously got treasury yields moving back up which took away this idea that maybe we'll get a reprieve for a little while longer on the interest rate concerns the dollar going up, as bill and bob were talking about, has also been a switch from the recent trend. yesterday we were kind of poking some holes in the quality of that rally i called it an upside air pocket we just undid it the s&p 500 just gave back yesterday's pop and a couple of points the dow is still up from friday's close i do think it's worth noting the market is still skiddish it doesn't feel as if it's out of the woods when you see the volatility index add on three-plus points, as i'm looking at it right now to almost 19, it shows we're a little on edge about all these macro factors.

we close much higher in the s&p. right now it seems as though we're weak going into the close and weaker to bill's point, if we're at 2623 in s&p cash and the low is 2593, if we test and break through that, they'll want to see the 200-day. that will be a 3% drop from where we are now to your point again, we'll have to retest that low some time tomorrow, monday or tuesday. this could extend it a little bit. we'd like to get it out of the way, test it, close higher than we are right now and then we could say, okay, been there, done that, but we haven't been able to cross that "t" and dot that "i" just yet. >> beyond the normal parameters you comment on, just as a normal trader, how do you see the market responding here >> you know, i think to level off somewhere between 23,500 and 24,500 is not that bad if you look at how much ground we covered from december of 2016 to 2017 and do a commodity retracement on those numbers -- listen, the volatility, we should get used to it. even in the euro dollar options is short rate t

these are the biggest drags on the s&p 500. we are watching it going -- we are watching bitcoin. it is bouncing today but still down 18% on the week. as we watch these swings and cryptocurrencies, which perhaps are a proxy for risk in the market. look at the bloomberg. we have seen bitcoin in overbought territory at its extremes in late december. if you look at the relative strength index, and now getting close to over-sold territory. a rapid decline as of late. it is going back and forth, interesting to look at the various measures of momentum. vonnie: thank you for that. let's get back to president donald trump for the comments on the memo. trump: thank you very much, everybody. i better not get into that. [laughter] vonnie: once again, that was president trump swatting away questions about the memo. the gop is at a strategy session in green briar. the president said before that that the memo has been declassified but congress would decide what to do with it. we were anticipating a release today. james comey has been tweaking -- tweeting. the president says i think it is terribl

we haven't seen that yet on the s&p. what we're trying to decide and difficult to gauge because it's down to the investors in these programs, at what point do we say, okay, that's enough. now we're going to start taking advantage of the cheaper stocks. >> technically our dollar policy has been weak. oil got more expensive. >> which is not great. a weaker dollar is -- if shepard smith industries is pumps out your products to the rest of the world, it's great. people will buy more. the dollar is not worth as much. but ultimately it hurts the united states and has. and oil haas been that way. but now we're a huge producer of oil. our reliance has been a game-changer. so yes, it does have an impact. the dollar has gotten stronger today. that tells you there's a bit of flight to safety. >> shepard: it has strengthened. historically speaking, when everything is crazy, if everything is nuts, you go to a place that you feel comfortable. when there's a storm, you get in your safe room. the rest of the world, when they get weird, t

the same for the s&p 500. apple is higher by a quarter of a percent, and the s&p 500 is adding to its losses for the session, but we all know what did happen as there's four hours left. look at othera assets and how they are reflecting volatility. the dollar index well above 90 -- that is in latin america and the united states, but looking to the previous board, showing the dollar is little bit more supported today. it is about 89, so adding to the gains versus other currencies. 2.84%r gilts back up to -- to hear yields back up to 2.84%. he is anticipating there's going to be a two-way free exchange and will see 620 by year end. mark: global markets feeling it and with the chief financial economist, so much excitement out there, what is going on? seeing ist we are that it is out of the u.s. and not driven out of europe, and there is more confidence in recovery and also the german coalition coming together, which may lead to more spending in creation ofalso the safer access in the eurozone. this is all good new

market place over the last week to the s&p 500? look at the spyder trading over the course to month date period, down 4.5% on this. 4.4% in current markets. keep that in mind. look at three efts, lower volatility ones referred to, did they really outperform a little bit, maybe. usmb, 4.5%, and sphd, 4.6% they actually underperformed a little bit do the etfs give you lowball exposure remains to be seen what to leave you with, guys, low volatility etfs are not linked to the volatility relate etns like xib or bsx, not in that same league, also, these particular efts particularly carry a higher dividend yield than the s&p 500 each we just talked about there has a yield higher than the traditional s&p, guys, back to you. >> thank you very much, dom. let's kick this around is low volatility a way to protect yourself back with us, bob pasani at post nine and cnbc's commentator, mark santelli. i'm reminded, looking at the different instruments that dom looked at. when i go down the supermarket aisle, all the soft drinks it takes up an

the s&p up 6 points, the nasdaq up 16.e're down for 2.82.8% for the nasdaq and the ds&p for the month. >>> as we look and see that we're down just down on the nasdaq as a whole, we see how quick markets have rebounded do you think they've rebounded too quickly, jurrien >> i think we got almost 12% on an intraday basis over nine days usually you get a v-shaped bottom and the move up is about as sharp as the move down. you hit resistance and that's where we are we hit the 50-day moving average, and at this point the market, if history is any guide, should start to run into a bit of a wall and kind of stagnate for a few months and then maybe retest the lows. normally you get the v and the chop i suspect we'll be in the chop for a while, especially address the fed seems to be hinting that it's going to be moving the goalposts in terms of what the market has been pricing in for the fed. >> what is your take in terms of jay powell's testimony yesterday. do you think we're set for four hikes this year? >> yeah. the way i look at

the s&p 500 laggard -- joe: incredible day. let: if you look inside the group movers here, we have to be brought in this rebound. tech, andterials, consumer discretionary's, and on the downside you have the rate --sitive bronc proxies of bond proxies of utilities. it a quick check on the vix, thathe spike in the vix sent short volatility etf's to tumble in after hours trading yesterday. let's split up right now, a inent to as high as 50 trading this morning before the market opened, but shortly after the open, it plummeted to the low of at session at 22 and has now settled at around 30. ofve been thinking about it late because of short volatility etf's and how they could be terminated if they dropped more than 80%. to put in percentage terms, the vix rose as high as 35% and fell as 40%. joe: lots of people massacred in both directions. 2.80%, sor yield at does the fly in the ointment in what hasally which is sort of been giving people the anxiety. we see that again today, it is a classic risk on move with the 10 year yield at 2.

the dow and s&p up 4%. eek and the ten-year yield above 2.9% we'll see if that oospks equity markets again or not "squawk box" is coming up next ♪ ♪ show me the olympic winter games ♪ ♪ like i've never seen before. ♪ ♪ xfinity x1, yeah, i always know the score. ♪ ♪ medal count updates, keep up with the standings. ♪ ♪ my boy "red gerard" always sticks the landing. ♪ ♪ stream it live on every screen, ♪ every medal, every slope. ♪ ♪ hockey hair never looked so dope. ♪ ♪ triple corks so majestic in 4k resolutions. ♪ ♪ skiers spinning, rewind, count the revolutions. ♪ ♪ alpine, freestyle, dang, what's next? amazing outfits? ♪ ♪ sequins and spandex. ♪ like curling? daily highlights keep you up to date. ♪ ♪ restart a live broadcast when you're running kinda late. ♪ ♪ 2000 hours of coverage, get your mind blown. ♪ ♪ 50 olympic channels, yup, you're in the zone. ♪ ♪ and if there's something that you want to see, ♪ ♪ pick up that voice remote and just say "show me..." ♪ whoa. experience nbcuniversal's coverage of the

the vix 10's to overshoot. you could argue we are already .t a point usually, when you get a spike , if you look at the ratio from the first of the third, it is very sharply inverted. basically, it is the most it has been. theou are willing to take leap that we are not on a financial crisis, that is consistent with a short-term selling agenda. >> are you hearing anyone blame the selloff on anything like etf's for instance? >> this vehicle has not really been tested in a market downturn . >> people have issued with that underlyingis not the security. >> we have done a lot of reporting on the fact that they were pretty narrow in terms of what they were investing in. toanother thing, we have talk about this and how it was divided. >> will resolve in january to a certain degree was a big question by a lot of people in what we have seen over the last 45 trading days has backed that up. finally see the dollar -- not a massive spike up. while, first time in a they suggest some of the selloff was at least the flipside w

the s&p up 5.6%. e nasdaq had the best month since october of 2015, gaining more than 7% out of 11 sectors were positive. consumer discretionary led the way. utilities were down more than 3% the dollar was a massive story, down over 3% it's starting this month down slightly as well >> it's interesting that the s&p 500 is right now outpacing the gains we are seeing in other parts of the world including asia the japanese stock market up 3% for the year china up 4%. >> hong kong up 9% >> hong kong is the winner so far this year. look at how asia closed overnight. we saw weakness in the hang seng and shanghai composite by feneay 1% the kospi is basically flat on the day. let's look at europe eurozone finally january manufacturing pmi came in at 59.6 wilfred was waiting for this number came in flat it has been on the mend. that's one of the reasons the german index has been outperforming. >> that reading was slightly lower than the last reading at 60 but 59 a sign of strength in terms of the market performa

we also have the s&p down 72. we are down 5% from the highs. from the all-time highs in what we are looking at at the moment for the hour and for the past several years. we are still pretty much up about the 26 percent for the years. as we look right now at the transports we are now down 106 points. we have the russell also losing all of the gains for 2018. now we have to remind you that the dow lost 666 points on friday so you do the math. we are now looking at 1300 plus points over just two days. when we stretch it out. but look at that one week picture here. what started as a problem with the ten year yield which of course overnight we want to tell you hit a new for your high it is is since moderated. his fear of inflation we can get our experts in right now and has to do with the fact that there are people who had built in cell programs it is now we'll off its highs. the reason people get nervous about high treasury yields is because it makes the cost of boiling more expensive. i will take that out of the equation for a moment. you can look

the s&p dropped to what's called the 200-day moving average. this is a so-called major technical indicator that stretches out over 200 days as a trend. when you drop to that and hit it and go below it, that kind of makes the markets do squirrely things. it triggered a move, and the move was to bounce up higher. people saw that lower level, they swept in -- at least some of you out there -- and started buying. but both the dow and the s&p 500 we do need to remind you at this moment remain solidly in correction territory. that means it's more than 10% off the highs of january 2016. that was a record high. the nasdaq is just slightly below that at the moment. we're watching it tick by tick here. so far the u.s. markets shedding some $3.2 trillion -- this is on paper -- over that time, and it's according to the wilshire 5000 index which doesn't even have 5,000 stocks anymore, but never mind, that's a whole different story. globally, we're talking about $6 trillion this week alone shaved off all markets. take a look at what the major indices are doi

and afterwards the s&p assumes the march higher but january was different. s&p pushed through the high end. garner said this was all about fommo, fear of missing out the short sellers got crushed and many didn't recover. pushing us to incredibly high level. the relative strength index also surged past 90 which according to garner is the highest reading we ever have had for the s&p 500. it didn't even test the low end of the up turn trend look at that. didn't get down to the bottom channel. because we were falling from rare heights if not for the huge run in the few weeks of january, garner doubts anybody would be talking about broken markets it forced out the bears and washed out the euphoric bulls. i think the vix related etns are real problems. i think they hurt regular every day mom and pop investors. but garner makes a good point. betting against volatility is an extreme type of irrational exuberance check out this chart this is vix going back 20 years. the most of the time, you can make steady money shorting the vix which is why so many hedge funds were

the s&p has been down for the day. is a lot of sectors losing ground with the s&p, consumer staples, utilities, telecoms, the consumer staples think about the walmart news, a big piece what's happening with what you're seeing with the dow industrials is walmart, under pressure after a disappointing quarterly report and a big piece of the problem with walmart, not performing in the online sale space. they have a big competitor, amazon, that's an issue for walmart, hurting the dow. home depot doing better, not helping us out, the nasdaq went into the red, not even ten minutes ago, we may have another sell-off. investors coming back from the three-day weekend, president's day weekend, hitting the sell button, concerns about nation on trader's minds. >>> the national average for gas prices dropped 5 cents last week. you may be paying a bit more the the pump in the near future, that is if president trump's proposed 25 cent per gallon gas tax goes into effect. a new study released by two organizations that's tied to the koch

the s&p down .5%. the nasdaq little changed. the vix is little changed. 37, quite elevated compared to where it's been recently, still at its highest since 2015. a lot of investors asking if normal the new after getting used to suppress volatility over the last year or so. 500 overok at the s&p the course of the session. we did see that plunge at the open. before it got closer to the unchanged line. something interesting that our bloomberg charting team noticed today had to do with not just , whicholatility exacerbated the selloff, but also people taking money out of long volatility vehicles. this looks at the short-term futures etf daily close and a vix short-term etn daily close. one of these shorts volatility, one of these double long volatility. we saw money come out of both of those. the folks who were long volatility make money. -- made money. we have the spike in the vix. session,ack to today's in terms of what is holding back further declines in the u.s. market, part of it has to do with large-cap technology. microsoft h