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The dow now down 4 . Nasdaq giving up 181 points. We have full team coverage. Bob pisani clocking the action at the stock exchange. Bertha coombs at the nasdaq and Jackie Deangelis at the nymex. Lets start with bob. Apple helping to turn things around. Emwas typical. The big plunge and recovery we saw all within 15 minutes. Apple opening down from thursdays lows. Recovering and testing it around 9 45. Let me show you intraday full screen of what the day looked like for apple. It doesnt do justice looking at the chart. Close was 105. 76 friday. Within less than a minute we went to 92. Down 13. At 9 45, the whole thing turned around. Ten minutes later, apple up at 102. By noon after the 11 30 close in europe, it was up 108. These are large moves. Its hard to describe how weird today is. We have two new highs at the new york stock exchange. 1239 new lows. Those are very weird numbers. We have 160 stocks advancing. We have roughly 3,000 declining. You get an idea. You dont see these numbers very often. People asked me, is there anything out there that would benefit from all of this turmoil and volatility . Yes. Market makers out there. Virtu. These companies do not cause volatility but would benefit if there was volatility. Jackie, lets get the latest from you. Investors will think the whole story is whats happening there and that is certainly not the case. Its interesting because we saw oil prices mirroring what was happening in the equity market. A very wide range trading over 40 a barrel at one point. Then down to 37. 75 before we finished 38. 24. A 6 1 2 year low finishing under 40. The color i was getting from the floor is we probably are going lower from here barring some unforeseen event. The supply demand dynamics remained the same. There are concerns about what is happening overseas, especially in china. Demand in the u. S. Is expected to drop off. Traders said last week we touched and test the lows. We dont necessarily close there. When we do, we fall hard fast. Barring something unforeseen, some headlines out of the middle east, 32 could be the next stop. I talked to more people today telling me i wasnt convinced i would see a twohanding, but now i think its possible, quoting them. For sure. Certainly that will be on peoples minds how much further can we go. Bertha coombs at the nasdaq. What are you watching . Nasdaq composite this morning hit bear market level. The low of 4292 at the open, 20 below julys alltime high. We are selling off here. Well over 10 from the high. A big part of that decline was the impact of apple at the open. Apples reversal buying in a number of momentum names like netflix and gopro. Theyve given up their gains backing onto the final hour. Also saw chips give up their gain. They moved into positive territory. Small caps falling back near their days lows. The nasdaq biotech etf trading twice its daily volume. The big caps trading at about 350 of daily volume. Already today, apple has put in its biggest volume day of the year with more than 130 million shares trading hands. Thats the largest volume weve seen for apple shares alone since september back in 2014. Thank you for now. Lets get to it with ourll exch. We have Michael Santoli of Yahoo Finance and david ellison, peter costas and rick santelli. David, give us a window into what its like at your firm today. What are you doing amid this turmoil . We had inflows across the funds. Generally, things are calm. Ive been in this business 30 years, investing in banks that many years. Its the first time we had this turmoil where the banks arent in trouble. The banks are the healthiest theyve been in decades and the markets doing this. Its interesting to watch from that perspective the first time in my career. Peter costa, do you see that playing out here . Was it people as david indicated coming into the market . Yeah. It was institutions came in, pushed the market higher. If it doesnt sustain it, we are in a soft phase. We could sell as quickly as we went up. If you look the way the market has been trading today, we could be flat or down 1,000 points again. It can happen either way. I dont know which, but it could happen. We are hearing two different perspectives from bigname investors out there. There is Jeff Gundlach. Well get to that in a moment. There is bill mueller who asked what he is doing in this environment, is he buying . Definitely. He is buying the Home Builders, buying the airlines which could easily be up 25 in the next 12 months, big banks, tech like apple, biotech names he mentioned on this program before. Even what he is calling the busted oneoffs like groupon, endurance and platform speciality. He said, quote, almost anything will be higher in 12 months and is still short oil. That is a popular position today. Heres a reminder of how Jeff Gundlach sees the world differently. Take a listen. If you had just been off on mars and came here and looked at that one chart of gdp you would say, gosh, i wonder if the feds going to ease. You wouldnt be talking about tightening. The fed wants to get off zero because who wants to be at zero should the economy actually go into some recessionary mode . The economy just hasnt been able to corroborate the hope theyve been showing. What do you think the fed does here . Obviously a tough fix. I dont think the fed wants to send a message of this set agenda. They can wait beyond a month from now and say financial conditions tightened on their own. We dont have to move here. We see no catalyst to move. That doesnt change the overall script. I think what weve seen in the markets is that exact anxiety with the fed seeming to have a bias going in one direction and pulling against Everything Else going on in the world. Rick, what do you think whats the message of these markets today . Treasuries have smaller moves in comparison to the moves in equities. That makes sense. Treasurys been all over the notion Global Growth will disappoint. Long end of the market, 30year bond is unchanged. 10year note yields only down four basis points. In Jeff Gundlachs analogy if someone came down to mars and looked where treasuries are now versus friday, they would never have drawn attention to the type of session we saw in equities today. I think frame the question is what follows august, september . What is conventional wisdom . Normalization in september. Why are we doing this . China sped up investors timeline. I thought they wait until the second week of september before they thought about normalization. The moral of the story is once you go through the dts and withdrawals and sweat it out, why would anybody want to do it a second time . I think janet yellen should ask that question of the fed. As we turn our attention with 50 minutes to go until the close whats moved significant about the price action youre seeing . The movements weve seen have been so fast and so large, which is very unusual. Even when the markets down 120 or 200 points or trailing off, it takes time to get to the next level. You turn around, we were down 570 when bertha went on. She got off the air we were down 6. 45. Its been a quick this is an electronic marketplace except for the closes. Its been extremely fast. Its happened very quickly. There are some who are going to ask about the role of el algorhythmic trading. Is that investors trying to make sense of this fastchanging environment . The fed is not responsible for the stock market. If they need to raise rates to make the system healthier, thats what they should do. Stop worrying about the stock market and stop thinking they are responsible for the stock market. The market is all over the place. Its open. The Capital Markets are open. Banks are making loans. This is all a very healthy process. This idea we should be scared of it, its the opposite. This shows the strength of the system. We can have china go down, have our market go down, it comes back, nobody is complaining. I dont hear any banks in trouble. I dont hear problems with liquidity anywhere. We are getting through this without any real problems. The last time bear stearns went from 60 to 10 in a day and got bought out and we had a real problem for six years. I dont think you have to say this is anything like 2008 without saying the fed may be is going to take financial conditions into consideration. Its not about the stock market. Its the credit markets, emerging markets. Im not saying they cant move in september. To peters point, every other asset market in the world has been moving wildly all year except for u. S. Stocks. Are they ever going to move for six months . We packed all that movement into three or four days. Thats why we see this disorderly action. The fact we can go down 1,000 in a flash and people ask if those prices are real, that puts people on edge. Great point. Thank you very much. Go back to the faux prices of the past. La years we should be worried about, not the correction right now. We take your point, sir. Thank you. Rick santelli from chicago. Peter, well let get back with you. David, youre stuck with me. Dow down 615 points. Much more ahead. Some market watchers blaming the fed for this market mess. Well get reaction from former dallas fed president Richard Fisher who will speak with us exclusively. The chief Investment Officer of the nations second Largest Pension Fund Christopher Ailman will be here. So youre a Small Business expert from at t . Yeah, give me a problem and ive got the solution. Well, we have 30 years of customer records. Our cloud can keep them safe and accessible anywhere. My drivers dont have time to fill out forms. Tablets. Keep it all digital. Were looking to double our deliveries. Our fleet apps will find the fastest route. Oh, and your boysenberry apple scones smell about done. Ahh, youre good. I like to bake. Add new Business Services with at t and get up to 500 in total savings. And i am a certified arborist for pg e. Ughes i oversee the patrolling of trees near power lines and roots near pipes and underground infrastructure. At pg e wherever we work, we work hard to protect the environment. Getting the job done safely so we can keep the lights on for everybody. Because i live here i have a deeper connection to the community. And i want to see the Community Grow and thrive. Every year we work with cities and schools to plant trees in our communities. The environment is there for my kids and future generations. Together, were building a better california. Welcome back. Dow jones industrial average down 588 points today. Its one of the worse losing streaks weve seen. Its well off the lows of the session. This morning the dow was down almost 1,100 points. Many hitting fresh 52week lows today. Is there a look at the major indexes. S p down about 4 . Here is a look at the red and green. There are only about five names in the s p 500 currently in the green. For everybody else, its a sea of red. Markets are taking a deep dive. Its the Ripple Effect from china. The shanghai composite down dramatically overnight. They are calling it black monday in Chinese Media my next guest says brace yourself for more china contagion. Alberto, why do you think this gets worse . Well, i think its not just china. I think investors are questioning the credibility of Central Banks. We were just starting to think about a world with the fed moving from low Interest Rates to potentially hiking. It just happens that all the policies that globally have been done to create a recovery since the crisis are based on monterey policy and low Interest Rates. There is no investment in the real economy. All the money has gone into financial assets. The world looks very good if you look at asset prices, except for the last few days, but it looks worse if you look at the real economy. So the market is asking if china cannot stimulate stock markets, can Central Banks stabilize their economy or are central bankers powerless . Have they any more dry powder left to counter another crisis . That is what investors are asking. How would you bet that question gets answered is what im wondering here . Today you see the emerging market stocks which have been collapsing a while now have not markedly underperformed. Has most of the damage been done elsewhere that were recognizing here now . There is an indiscriminate selloff. Some parts of the market in the u. S. Or europe as well there is volume. There will be opportunities. I think its too early. You never really had a readjustment in the credit amount, in the amount of debt that has been created over the last decade. Basically, emerging markets, sovereigns and corporates benefited from the fed liquidity. They borrowed throughout the crisis, including the last seven years from 2008. We now have emerging market firms with up to 90 of our debt in dollars. This debt becomes bigger and bigger compared to their revenues. The currency crisis can become a credit crisis. There are a lot of people looking back to the 90s and what happened in the Asian Financial crisis then. They say all those countries today dont peg their currency to the u. S. Dollar to give them more breathing room. What you are saying is sure they can do that, but they have dollar debt so its not going to make a difference because they have to find a way to pay it back . The sovereign situation is better. There is an average amount of dollar debt and no pegs. What is new is the corporate world. Around the quarter of dollar corporate debt. Traded in the u. S. Comes from no u. S. Companies. This is up three times since the crisis. The market for dollar denominated debt from foreign firms tripled. Around 10 of the dollar Corporate Bond market is from energy market. Qe has sort of worked to start some recovery in the u. S. Even the u. S. Is vulnerable to the potential burst of bubbles around the world. China has been responsible for half the worlds growth in the last few years. How does this play out . Can anything interrupt that process at this point . Its hard to look at contagion in china exactly. There is contagion channels through lower amount of petrol dollars from oil exporting companies. There is the contagion channel to dollar liabilities. Firms borrowing dollars can default. Only central bankers can stop this. Jackson hole looks like very, very bland event. Yellen is not participating. Draghi is not participating. I think volatility will continue until the fed meeting later in september. Plenty saying its got to come from china. 40 minutes to go in the session. The dow again moving lower. Now down 673 points. Better than 4 . 4. 5 declines on the s p 500. The only thing less remarkable about the declines we are seeing is the magnitude of what we saw at the open today with the dow down more than 1,000 points. Plenty around here will be watching to see if that indication to the sell side is heavy into the close. Dominic chu identifies five stocks that could be safe havens in this storm. David rosenberg tells us where he is seeing buying opportunities. Ive got a nice long life ahead. Big plans. So when i found out medicare doesnt pay all my medical expenses, i looked at my options. Then i got a Medicare Supplement insurance plan. [ male announcer ] if youre eligible for medicare, you may know it only covers about 80 of your part b medical expenses. The rest is up to you. Call now and find out about an aarp Medicare Supplement insurance plan, insured by unitedhealthcare insurance company. 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Remember, all Medicare Supplement insurance plans help cover what medicare doesnt pay. And could save you in outofpocket medical costs. Call now to request your free decision guide. And learn more about the kinds of plans that will be here for you now and down the road. I have a lifetime of experience. So i know how important that is. Welcome back. The dow is down 660 points this hour. Its well below 16,000. To remember, we peaked above 18,000 earlier this summer before the selling pressure has intensified. 4 declines across major averages. 4. 5 nearly on the s p down 88 points. Nasdaq down 200. Lets look at the sectors here for a better sense of who is feeling it most. Financials down 5 . Consumer staples holding in better, down only 3. 8 . Dominic chu joins us with a look at five stocks that could offer safe havens in this storm. There noise exact way to tell what is going to perform the best or not going to. The markets are currently in flux and always that way. We decided to look at the stocks that fared the best in the wake of the last major correction we had. That was mid april to october of 2011. We took a look at returns from about the middle of october till now to see which stocks in the s p 500 performed the best. Among the standouts are popular names among some of our viewers in terms of the tick er ups the had. Under armour. We know about the momentum there. They are riding a big wave with their stable of athletes. Pulte group very much a theme, especially in todays trade currently. Home building stocks held up well given the malaise weve seen. Gilead science. Health care has been a hot trade the past couple of years. Health care has been one of the leaders over the course of that time. Netflix shares, we know how much theyve been up. They are falling hard over the last few days. Those shares up 540 . Regeneron, the single biggest performer in the s p 500 since october 4th. I would point out that among the stocks that viewers have looked up the most today on cnbc. Com in terms of the tickers, apple, facebook, netflix, ge and bank of america. Those five stocks, again, some of the consistent winners in lookups. A lot of viewers on cnbc. Com have been checking those tickers out in particular. Always worth noting, apple probably four times more search than any other single stock ticker in our universe. All right. Its in a bear market. Where does David Rosenberg see opportunities here . He joins us with his perspective. Are you bullish on equities, bearish at this juncture or all getting thrown out the window . I think i was last on a week ago and said we were expecting a pullback. We are seeing a very severe pullback. If the question is, is the bull market over, no. Unless you think the u. S. Is going to tip over in a recession. I dont think thats going to happen over the near or intermediate term. We have not had a meaningful correction in four years. This is a multipledriven setback. 90 of the decline from the may highs happened since the chinese devaluation and all the adverse news thats come out since then. We are importing this from abroad. Its not like 2007. Its not 2001. Its not 1989. This is not a made in america pullback in the stock market. Weve imported it. Domestically there are still some areas that are opening up nice buying opportunities right now. 1998 you had an emerging market married to markets overvalued. How does this play out if we see something that rhymes with that . Are we waiting for a hedge fund victim here . Do we have to see what the aftershock effects of this financial panic are . I dont know if i would call it a financial panic because when you look at the relative strength, whether its in the bond market or stock market of the financials, the commercial banks, regional banks, they are not breaking down. We are seeing a very dramatic correction right now. We had this is the 15th 5 plus pullback since this started. We have to get it through our heads the market doesnt always go straight up. But its going straight down. The dow dropped almost 1,100 points. There is something to be said for the speed of what we are sitsing her i witnessing here. No question. At some point the market will find its bottom. Lets put it in a perspective that we had three years where if the market went up 15 per year, corporate earnings are going up less than 5 . Half were stock buybacks. Actually, in every correction we have the declines are much more precipitous than the gains are when the market is in a rally mode. There is nothing here, quite frankly, ive been in this business 30 years. I started in the business october 19, 1987. I think the comment before about confidence in Central Banks, i think that this was imported from china. Ultimately it will be up through china and a dramatic easing view that will help put a bottom here. Since wednesday you had 10 corrections in the Home Builders, in the retailers. In Consumer Cyclical Services that have nothing to do with china, nothing to do with the u. S. Dollar or emerging markets. We are getting into the stage where the baby is getting thrown out with the bath water. If you have a 12 to 36 month view, you are going to wish you bought some of these names right now. You mentioned there is a place you see opportunity here to buy. Specifically its possible, where are they . Interesting last week. Last week was the worst week for the stock market all year long. Same week we have Housing Starts and home sales go to new cycle highs. Home depot not only smashes through its Second Quarter estimates but raises guidance the second time for 2015. The reality is that the markets and the economy dont always have to intersect the same time. Ultimately, if you are a longterm investor, you are buying on the fundamentals. The fundamentals in housing on the domestic consumer side are starting to improve. Theres lots of areas within this 10 trillion market in the u. S. That really is impervious to whats happening in china, opening up good value. Right now housing is becoming a positive story for the united states. You just had a gift handed in the form of a 10 correction in the past three days. If the Chinese Central Bank is the thing that perhaps needs to put in this confidence low people have to believe in some kind of easing move, is the fed just noise and side show at this point . To me it was never, is the fed going to raise rates from zero is always the case where are they going to finish the tightening cycle . I was never a big fan of the view they would move in september. One reason why the market had problems was a broad expectation over the weekend the pboc would cut rates. Also cut Bank Reserve Requirement ratios. Of all the major Central Banks in the world, the pboc is the only one with bullets in the chamber. They can cut rates aggressively. The big hammer is Bank Reserve Requirement ratios. People were miffed as to why, considering never mind the stock market there, considering the economic data, why they didnt move at all let alone vigorously which they have to do at some point. Look at the price of oil, relative strength of small cap stocks and high yield market which had a coronary. Soon as those stabilize, and we have one out of the three so far seems to have put in a bottom, then well talk about forming a base here the next couple of weeks. All right. Love hearing your perspective. 30year perspective. Thank you so much. Appreciate it. We are going commercialfree until the close. You have 25 minutes to go in a market down almost 700 points a second ago. Dow down 657. Up next, the most important 30 minutes of the trading day. A top trader tells us way is watching into the close as this winds down. Td ameritrade, theye always working. Yup, were constantly making thinkorswim better. Like a custom screener on your desktop, that updates to all your devices. And you can share it with one click. Wow. How do you find the time to do all this . Easy. We combined every birthday and holiday into one celebration. different holidays being shouted back to work, guys i love this times of year. For all the confidence you need. Td ameritrade. You got this. Welcome back. Dow jones down 518 points. We are watching the broader indexes. Crude down almost 6 . Trading above 38 a barrel. That is the wti contract. Brent down 6. 5 . Lets get perspective on what to watch the last few minutes of trading with mark newton. You see the development where the s p cracked down below these july lows. That caused a real acceleration. The break of the support is truly important. We see signs of capitulation. Volume on the down side versus the up side. We can be close to a bounce. The vix more than tripled. That is important. Put to call the highest in three years. Look at the second chart. You see a different perspective. The s p has broken this trend line going back since 2011. The dow has broken since 2009. Those are significant technical developments. Short term is much different than long term. Near term people are hopeful we can see some sign of stabilization and bounce. Longer term is more bearish based on what happened the last few days. That is what we were going to ask. People have been asking us. Now that weve fallen substantially, does that put us in new ranges Going Forward . It does. Until you can recapture the areas broken, 2044 which is almost 5 to the up side, the trend is bearish. Everybody is hoping for a shortterm bounce to sell into. Until that happens, intermediate turned more negative going into seasonably two of the more bearish of the year. Thank you so much. Crude oil setting the stage for bankruptcy firings across the energy space. Kate kelly is running through the carnage for us. Energy paper accounted for a substantial chunk of the high yield market. There was a healthy influx of new public capital earlier this year, it would seem that funding is about to dry up. Sampson resources recently announced plans to file for chapter 11 protection in september set a somber tone for other energy junk credits troubled, as well. There is plenty of reason to worry. 50 or 60 oil, let alone 35 or 40 oil. 2 to 3 natural gas made it tough to drill profitably. The price hedges may be rolling off soon. Bonds trading at a quarter on the dollar. Swift energy, the gulf area oil and gas driller trading for about the same amount. Energy 21, another gulf area driller that raised 1. 5 billion in new debt just this past march is also trading at less than 60 cents on the dollar now. These guys are all on the worry list. Well have to see what happens if prices remain low. That has everyone concerned. Kate kelly. No secret low oil prices should help consumers at the pump. At what point does it become a major negative Tipping Point for the Global Economy . Welcome to you both. Are we at that point where its doing more harm than good . Weve already seen a situation where you had a major decline in crude oil, 50 , no big positive impact to the consumer. People are asking the question why. The answer is the oil industry is much more important than it used to be. The u. S. Consumer is being squeezed in particular health care, taxes going up, real estate taxes and other sales tax revenues. Income tax raises in other states coming through. What is happening in oil is just not having the traditional benefit. You see further downside here. What will come along we dont know about the supply picture, positioning of speculators that will continue to depress the crude price . The think i worry about the most, refiners are going to go into maintenance, well continue to see inventories rise in the u. S. Thats going to be more bearish for an oil market that is oversupplied. On the flip side, good news is we are starting to see declines of production in the u. S. The thing we dont know is how the geopolitical events are going to affect the oil market. Right now there is zero risk premium. There are a lot of consumers that havent seen savings at the gas pump because of refinery issues this summer. If we move into the Holiday Season and gas prices are below 2 a gallon, could this materialize into a much better benefit for the economy . No i think we passed the point where thats the major impact. There is an enormous amount of income generation that comes out of this economy on the oil side now that we are largely an independent oil country. Thats part of the major change thats happened which is why the traditional effects are not finding their way through being passed through to the consumer. That is a critical change in the situation. There is another critical change taking place. That is the pressures on the labor market still. I hear people talking about employment rate coming down, feds got to be raising rates because well have inflation kicking off. We have a very depressed labor market. We have an economy stuck around 2 . What economists have begun to say maybe the trendrelated growth is less than 2 . None of that Capital Equipment is gone. Its all here. Bring back greenspan . No you go back where we are not creating significant inflation. There is no justification for higher Interest Rates. Are we getting near a point in terms of crude where the global suppliers start to panic and make gestures saying this is too low a price . Members of opec are concerned. We have the Iranian Oil Minister saying we are going to produce no matter what the cost is and on the other hand we need an opec emergency meeting. I dont look for help out of opec though they are feeling the pain. Just to go back to what kate kelly was reporting, there could be more stress across firms. Do you have a sense of what breakeven prices look like . The breakeven cost was far lower than today in their main producing counties. If you look in canada, they need about 35 to 40 for Oil Production thats under way and 80 to 90 for new investment. The same is true in the gulf of mexico. I think the big story here is that the fracking revolution is here to stay. Its this deep water investment in the gulf, offshore west africa or the north sea that we are not going to see for a long time. Thats the high cost producer. Guys, thank you. The jackson hole summit begins thursday and focuses on inflation. All eyes turn toward what might come out of asia. People telling us thats where we need to see the big price action. Here markets are hoping well finally get some. Every time we see rumors making the rounds, markets decline back. Dow down 339 points. We were down more than 1,000 points this morning. The benchmark climbed back above that level but barely. We have our full team in action on cnbc. Bob pisani at the new york stock exchange. Bertha coombs at the nasdaq and Jackie Deangelis at the nymex. What are people buzzing about . Now we are down 360. Its been that kind of day. I struggle to explain how weird it is. How weird the numbers are. Ive been here 18 years and not seen these kinds of numbers. Let me show you two new highs. 1250 new lows. A lot of new lows. 300 or 400. Theres 122 stocks advancing. These are outlying bizarre numbers you dont see that much. There is the dow industrials down 1100 points after the open. Part of the problem was we had a rolling open because a number of stocks didnt open exactly at 9 30. There was such an avalanche of sell orders it took five minutes to open most of the big ones. We didnt hit bottom immediately. We would have if everything opened perfectly in time. 9 35 was the bottom. From there spy orders came in, panic buying at 9 35 to 9 45. Dow dropped about 300 points. Then the selling dissipated. Its been a wild day. Right now the dow is down 400 points. Thank you. Bob pisani. Bertha coombs from the nasdaq. Im watching very strong volume. Usually that gives you a sense of sentiment and direction. Today its been all over the place. The nasdaq giving up their gains for the year. About 2 3 nasdaq 100 stocks are negative through the year. We started the day with every component in the red in the index. You take a look as i came out here Green Mountain coffee was still up, one of the few that bounced off a 52week low. Holding up. We are also seeing strong levels back to the down side. Declining stocks making up 95 of the trade in volume. Its not just in these usual suspects like the chips, like some of the big cap techs. Costco, even express scripts today at a new 52week low. News corp. Hitting a new historic low dating back to its split back in june 2013. We are seeing people sell their losers and winners. Look at netflix. Today it went positive for just a little bit. This is a big winner. If its under selling pressure today, it still has doubled yeartodate. One of the few still showing those kind of gains. A day like this, we need that longerterm perspective. Jackie deangelis eyeing crude oil sliding again. Everyone still trying to figure out how much more pain to come. Thats the question. Today was one of those days where crude wasnt helping the market. The market wasnt helping crude. They were moving lower together. That settle under 40 a barrel was a key level for crude oil. Sentiment right now is very negative, especially if we continue to see the Global Equity markets in turmoil. Next stop we are watching is about 32. One trader pointing out, iran calling for an emergency meeting of opec. If you get an event like that, and theres a big if, that could turn things around immediately. You could see crude oil top 5 in one day. This is a tentative market right now. Traders that were thinking they would see a twohandle, barring an unforeseen event we could. The flip side goes back to the story kate kelly was reporting. These may be the events we need to turn this crude oil market around. If you have a problem with these debt issuances or the issuance of new debt, will probably stop as a result of this. Well start to see production numbers come down in a meaningful way. Thats what we need to rebalance these prices. For the time being, the sentiment negative in the crude pits. Most traders i know are looking at this market from a shortterm perspective and think we go lower from here. So much red here. Art cashin indicating 1. 2 billion to go to the sell side on the close, putting more pressure on stocks. Dow down 450 points. Its been bouncing around all hour. We have eight minutes to go. Sam stovall joining us post nine from s p capital iq. When we saw each other last night, the futures were pointed down less than 100 points. What do you make what happened at the open . We just had so many sell orders build up. We closed on the low friday night. I think just nobody had any confidence. Really had seen any capitulation. This ends up being much more similar to what we would expect from a capitulation type day. We saw so much apparent pentup selling because we were in this tight range. A lot of energy seems to have built up here. What is the philosophy of the move today and disorderly nation suggests what this repair process might have to look like. When i look back and we topped out may 21st this year, so we went three months before we finally broke below that 5 threshold. That is the longest stretch in time going back to world war ii. That is a good thing. If it takes this long for us to finally give us the ghost, if you will, after talking about that transport and industrial divergence, talking about shiller pe ratio and all these negative things. If it took that long for us to finally let go, history does not guarantee that we are likely to see a correction, but we have never seen a bear market after that long of a lead time. You mentioned we topped out may 21. Sell in may and go away would seem to stay this time around, but only if stocks regained their footing and recovered. How do we know we are not going to slide into a more traditional crisislike environment like we had seen in 2007 and 1997 . 1997 was a close correction. Investors realize its not going to have a negative impact on Global Economic growth. We could end up with a 15 decline that does not throw us into a bear market but resets the dials and makes it so we can repair this decline. You mentioned the transports which was one of those major divergences. It was the case with junk bonds and small caps. With this decline, they obviously reconciled those divergences a little bit. What do we look for in terms of clues to suggest the things that led us in might lead us out . Those things that are priced to go out of business but dont, if they hold up relatively well, that could be a good sign. We are seeing growth and Health Care Hold up well. We need to reset the dials, looking at s p cap by about 117 for this year. 131 for next year brings us down to a sub14 pe. Breaking news with steve liesman. Atlanta fed president says he still expects a rate hike this year. Importantly, he is not repeating his recent calls where he said he was disposed to a september rate hike. When they begin, he expects them to proceed gradually. Rates will remain low for quite some time. He doesnt talk about the recent market volatility in the stock market, but says a stronger dollar, a weaker yuan and decline in oil price complicate the growth forecast. He does forecast moderate growth, job gains and rising inflation. Lockhart is one of the first fed officials to speak since the recent market tumult here. Consumer spending should improve but not be spectacular. He sees improvement in business spending and expects gains in productivity and wages. There you go. The first comments from a fed official but not specifically on the recent market tumult. Steve, thank you so much. Looking to see if stocks are reacting to it. They had a lot to react to today. Dow down 465 points. Lets send it to bob pisani. The important thing is the wild gyrations on the day. Art cashin joining me. The sell imbalances are big, but not as big as friday. No. What you had the last 20 minutes or so they got up to 1. 5 billion. People said its going to close like friday. Then it narrowed down to 700 million. Right now you are about 1 billion on sale for balance. Still a big number. A typical day would be 300 million to 500 million to the buy side. Its sizable. You can see for all the talk of light markets in august, we are going to do close to 1. 5 billion today. We had a lot of gyrations going into the close. We were down at one point 550 points then went down 200 points on a very short period of time. This is the last half hour. As would you expect in a volatile market, the rumor mongers are talking about what may or may not happen in china tonight. That added to the volatility. The speculation being that the peoples bank of china may cut the reserve requirement which would make it easier for banks to lend. What do you expect to see happen tomorrow . Are we a slave to china . Absolutely. It was remarkable to watch the panic selling, then panic buying. There are people looking for values and seem to have seen something there. My morning comments i wrote there was very likely to be an upside reversal. I didnt think it would come only five minutes into trading. Where do we go tomorrow . Can we safely start looking beyond china . Is everything still completely dependent on it . You are going to want to see what happens in china. I dont think youll get the scare you had this morning. Is this some kind of emotional climax . The fear factor . Went to 50 on the vix. Maybe thats the way it is. Maybe we have to get used to the fact thats the way it can happen. Its possible. This didnt have the right feel. When you get the massive volume we saw, we had some stocks down more than 10 at the open. Some big names. We had some serious, lets call it dislocation in some of the etfs, as well. They have a lot of stocks on their panels. I dont know if that is an issue to revisit. Hard to get these open. It was. Here we have the dow closing down 576 points. Kelly evans is next with closing bell. Here is how we are finishing one of the most memorable days in recent history the dow going out with a decline 584 points. That could shake out a little bit. This morning, we opened down more than 1,000 points. We are seeing, of course, much more muted declines relative to that. On its own merit, some of the worst backtoback declines in years. The dow giving up 3. 5 . S p almost 4 today. Nasdaq sheds 179 points and nears the 4500 mark after clearing 5,000 and setting new records earlier this year. Weve got it all covered. Lets get the top headlines from the trading floors. Bob pisani here at the new york stock exchange, Bertha Coombs at the nasdaq and jackie d. At the nymex. Ive been the floor reporter 18 years. I struggle to find a day with the strange numbers we had here. Two new highs, 1200 new lows. 120 stocks advancing, 3100 declining at the nyse. A drop of 1100 at the open, panic 9 30 to 9 35. Panic selling then panic buying. Then attempting to sell off briefly and rallying once again twice after the close at 11 30 in germany. It was one amazing day. You talk about the august surprise, the black swan event. Today it felt like we had a lifetime event during the trading day. The nasdaq giving up its gains for the year. This morning with that plunge down over 400 points, we were down 1,000 points from the high. About 20 below in bear market territory. As horrible as it looks, its not that bad. Now we are just in correction. The big story today all around was apple. We saw that big turnaround. It was a sizable reversal on apple. In the end, it didnt hold. As we came into the final hour, the selling increased here. Thats partly what dragged us down. Jackie is standing by at the nymex. Wild ride there, as well. Certainly didnt disappoint in the pits today. Thank you so much. Two major headlines we were watching, the first 6 1 2 year low closed today, closing under 40. We tested those levels friday. The close under 40 is key from a technical perspective. The other question is this fact we may have a wild card or a black swan event when it comes to crude oil, as well. A lot of people looking at opec and internationally, at the Iranian Oil Minister and his comments today that output will be increased at any cost. The market interpreting that to mean that the International Producers are going to stand by and continue to watch prices go lower. They are suffering, as well. We discussed that. Also the fact they are being really squeezed just as much as some of the u. S. Producers are. Turning into a game of chicken here. We upped the stakes and intensified it. Who will blink when it comes to crude oil . Traders think we go lower from here. Thank you for all the coverage today. Joining us for the second hour is Michael Santoli. We are joined by sara eisen and guy adami. It is a full house. Appreciate it to everybody here. What is the headline from today . We had pentup need for passive stock price adjustment. We got most in the last week. 10 correction in a week. I feel like we are now on china watch. Obviously we are fearing the open there. Markets panic until Central Banks panic. Maybe thats what collectively we are waiting for. Its exhausting to feel like we are on that cycle again. Guy adami, there were rumors about coordinated action out of asia making the rounds. We saw stocks jump on that. How significant is it that people are so quick to price that in . What happens if we dont get Something Like that . Quick to price it in. Thanks for having me. Every selloff weve seen, obviously nothing of this magnitude for some time, but every market selloff has been bought. People looking for any headline to give them an opportunity to buy what they perceive to be the next dip in the market. We throw the word panic around if we are in the middle or start of something, why is it panic . Maybe people saying things just dont feel right. There was not one event that precipitated this. This is a culmination, in my opinion, of many things percolating under the surface for months now. The signs were there. I would remind everyone this is a Global Market rout. European stocks closed 5. 3 lower, having its worse day since december 2008. There is carnage in all markets, including emerging markets emanating from the crazy currency moves there. Yet ive been Reading Research all day long from mostly u. S. Economists and strategists maintaining the view the u. S. Economy is resilient here in its recovery. They are pointing to auto sales and housing recovery. As long as that stays, dont get too mixed up here about u. S. Stocks. As David Rosenberg told you, its an imported selloff from overseas. There is focus from people saying they are starting to do a little better relative to the broader market. Did that hold today . Are they reliable . Yes. There was indiscriminate selling at the open. One thing i think is truly remarkable, we had a multiyear stock market cycle occur in 15 minutes today. I think, unfortunately, we are just going to have to get used to this. There used to be Science Fiction stories about the future moving faster. When you get five minutes of panic selling, and i dont know what was magical about the dow down 1100 points, we had massive dislocations. Big names down 10 . Then it just turned around like that. I think the good news is people found real value. They bought hand over fist. Ge has been around 100 something years and down 21 . Obviously enlarges a view what kind of move is possible. People were coming out to buy. One was bill miller. On the point about apple, there was an Interesting Exchange im sorry. Back to you guys. Really Interesting Exchange between tim cook and jim cramer this morning. Tim cook wanted to make the point after seeing his stock down 20 plus, if anything he said china demand is picking up. It didnt matter. Kudos to jim for getting a very important thing. Tim needed to reassure people he is going to comment on what his company is doing on an intraday basis. I thought it was extraordinary that he said sales were good. That was all you needed and wanted to hear from him. Business in china is good. It was as close to him managing his own stock as could you ask for. I thought it was an extraordinary moment. What is interesting here, fundamentally, people are confused to the fundamentals. Is this just the kind of correction we are overdue for and markets tend to have or is it people trying to figure out are we talking about a global recession . What does that mean for the performance of equities and all sorts of Asset Classes here . Sara brought up Research Reports today. They point to the consumer. People, i believe, confuse the health of the consumer with the consumers propensity to spend. The two are mutually exclusive. Just because the consumer is spending doesnt mean they should be or are in a position to spend. Again, not the fear monger, this is just my opinions. Consumer behavior. When you see the high levels of consumer optimism, all that is is an s p chart. People will spend when the market goes up because they believe theyre richer. Whether its true or not doesnt matter. Nobody is running out to nordstrom to buy a pair of shoes. The other chart or price Consumer Confidence tends to track is gasoline prices. Are we seeing any more activity out in the futures space to indicate well get that drop in prices at the pump . We will once we switch over to the cheaper winter blends. Probably a National Average of 2 a gallon. Because there was such a wide diverse range of pricing across the country, we may not necessarily have seen that tick up in consumer spending. If you recall, last time gas prices last winter hit the 2 mark we did see people get out there and spend that money. If they are not spending it, potentially theyre saving it, which isnt necessarily a bad thing. We probably will get that lower, watching hurricanes. It could take another two or three months to get there. Thank you, everybody. Fast money well talk with raul pal about how much more selling he thinks will come. With investors seeking a fast boat out of china, all eyes turning to the domestic front. Well see if the russell 2,000 and small caps are a safe harbor. Some watchers tying it to the fed and possible Interest Rate hike next month. An insiders view. Welcome back. As the dust settles from todays volatility, there you a few sectors that could provide safety. Dominic chu at headquarters with a closer look. Last hour we told you about the stocks that fared the best since we saw a decent correction. That was april to october 2011. Some of those names had very decent gains. Lets take a look at the broader look in terms of sectors. Which ones did the best in the wake of that last correction that we had . It was almost a bear market for the s p. In that time, health care stocks, that sector overall more than a double. 127 gains since the beginning of october of 2011, just about the time we bottomed out of that last move down for 2011. Last time we were in correction territory. If you look at the Consumer Discretionary space, more than a double. 111 gains for that sector. Then financials. Up about 98 . These three sectors doubled since the beginning of october. Perhaps if things play out again this time around, these could be some of the sectors that do well. I want to call your attention to one in particular. Thats the worst performing sector. You probably dont need many cases. The oil trade. Energy stocks up by about 2 . Some of the sectors to keep an eye on, this happened last time, see if history repeats this time. Back to you. Thank you. For more how the small caps are faring in this market turmoil, lets bring in craig hodges. Can you reflect on what just happened in the markets today . What do you make of it . It wasnt much fun. This is exactly what we need. Its been a very tough year. Maybe one of the most frustrating years i had in the 30 years ive been doing this. This is the process that gets the weak holders out. All the selloffs have been absorbed all year long as opposed to last year when we had three nice selloffs. Im not saying this is the bottom. We could continue to see it go down a little more. Stocks arent expensive. Especially in the small cap area. We see a lot of opportunities here. Lets hone in there a moment. People said small caps are expensive and in some cases it doesnt seem that way because the ones who dont have earnings are just excluded from the market all together. Where and why do you like the st. Pa small caps here . The small caps we feel like because there are a lot of new emerging industries and technologies, there is always opportunities there. The fact youve seen the correction like you have especially with the Exchange Traded funds, if you are in an e etf, you are a hostage. We can pick stock by stock and get very low pe type of investments. Things like Trinity Industries that trade seven times earnings. Big insider buyback. 7 billion backlog in the railcar manufacturing business. American trading about four times earnings, maybe less than four times earnings. Jet fuel from 3 a year ago to under 1. 50. Can you imagine how much the airlines are making . Analysts have to raise their estimates on airlines. The Home Building area. It was the strongest before this selloff. I suspect we are finally seeing good things probably the first time in nine years in the hold building area. We like the smaller Home Builders that dont trade at high multiples. Things like cement companies and fiber glass companies, roofing companies. A lot of opportunities out there. We here about domestic orientation of small caps being a virtue but they trade with the credit markets. All those companies have debt. Is that a concern in terms how these stocks might trade . You are hostage to what a lot of outside headlines. Thats the beauty of being a stock picker as opposed to owning an etf. We can own the things that already have the discounts in them. Theres big insider buying in all these companies. Cap stone paper is another one. Trinity big insider buying. American. They can trade down. When you are buying at these discounted valuations, there is a lot less that can go wrong. I think the down side is limited and the up side is dramatic. Thank you so much for sharing your view on this. My pleasure. Craig hodges of hodges capital. Plenty more on this dramatic today. Todays volatile session pushing one firm to change its fed time frame. Barclays says the fed wont raise rates till march next year thanks to the decent down draft. Few better to comment than the former head of the dallas fed Richard Fisher next. What if there were only one kind of dog . Then it would be easy to know everything about that one breed. But in fact, there are over three hundred breeds of dogs. Because no one can be an expert in every one. An app powered by ibm watson will help vets tap Specialized Knowledge in the cloud for every breed. And whatever else walks, flies or slithers through the door. Ibm watson is working to make medicine smarter every day. It took Joel Silverman years to become a master dog trainer. But only a few commands to master depositing checks at chase atms. Technology designed for you. So you can easily master the way you bank. Welcome back. Just a week ago conventional wisdom had it the market was going to expect a federa hike n month. Atlanta fed president Dennis Lockhart is a centrist whose comments solidified Market Expectations for a rate hike. He looks to be backing off that call. In a speak in berkeley, california, moments ago he said he expects a rate hike, quote, some time this year. He did not repeat comments he made earlier looking for a september hike. He expects rate hikes to many continue gradually. Weaker dollar and weaker oil complicating the growth forecast. Barclays making one of the most dramatic fed calls on wall street today. Pushing its expectation for the first federate hike from september to december. Tightening financial conditions and lower inflation. Business confidence will be negatively impacted. Clearly firms are going to look at this and be less sure about their sales numbers. Certainly less sure about any export growth they have into asia, especially emerging market asia. I would suspect Business Confidence will be reduced and that will reduce capital spending. Case for a rate hike was never so solid it could withstand a massive market plunge. Now with concerns about Economic Growth and jobs in inflation, the fed may have good reason to wait. Maybe until next spring. Steve, thank you. Joining us exclusively is Richard Fisher, cnbc contributor and former dallas fed president. Great to have you back. Should the fed wait till next spring now . These are deliberate people. They are not going to react to one days action in the market. Even though you had sort of a depth charge at the opening this morning, markets were actually quite ordinarily. For quite some time, weve been seeing the spreads between triplec credits widen and seeing a narrow channel in terms of a constant flatness of breadth in the equity markets. At least in my case in my last several meetings at the fomc, kept pointing out the equity markets overall, as well as triplec and b markets were overpriced and one should expect a correction. To use words from margaret thatcher, dont go wobbly on us. I dont think there is a Single Member of the fomc who is going to react to one days market activity. Sure. We take your point how you were raising this concern about a selloff, but at the same time, we tend to think of you as one of the more hawkish members of the committee. Eager for the rate hike to happen. How could you interested seeing the fed raise rates while being concerned about a market selloff and what about everybody connecting these two . Im the only one that was a market operator that served on that committee. Nobody else had the experience i had running a hedge fund and so on. I have a different perspective. I like to remind your watchers and others, we went through a substantial correction in 1962 and 1987. It wasnt harmful to the economy. People are jumping like the last comments you had from several people, a little bit too early here. Well have to see what prevails. The u. S. Is strong. Our numbers are moving in the right direction. Dennis lockhart made a very good point and steve made a very good point. The prevailing view at the table is if you move, you move slowly and deliberately. That doesnt mean a consequential number of significant moves that follow. You still have uber accommodative monetary policy. Bankers need Net Interest Margin to lend out. Every banker wants to see a rate increase. There are different forces here. The deflation in energy prices, crop prices, food prices benefits the consumers and we are a consumeroriented society. So there are are pluses and minuses here. Open Market Committee members do not react to one days action on wall street or even a correction. Theyll do whats right for the sake of the economy, whether they are hawks or doves or trying to figure out how to be wise owls and remove themselves from excessive accommodate. One thing i would say in the reaction ive been seeing recently, is the fed going to raise rates in september after lockharts speech, after vice chair fishers speech . It does demonstrate people are hooked on the heroin of quantitative easing. Nobody would like to see that continue. They want the right exit point. You are saying you disagree with former treasury secretary Larry Summers that raising Interest Rates would be a serious and dangerous policy error, he says that, would tlent all three of the feds major objectives . My brain compared to larrys is this big. Hes wrong in my opinion. I disagree with him respectfully. I think its a headlinegrabbing news. Even if they raise 25 basis points, whether its september or december, we have uber accommodative monetary policy. This is a point stan fischer keeps repeating and is correct. With all due respect to larry and his prodigious brain, i disagree with him on that. Without espousing this view, there seems a sense maybe the fed missed its optimum window. We waited this long and we got 2 gdp and Financial Markets have come a long way, and now they are having trouble. Is there reason to worry that even when the fed does eventually move, it might not be the optimal time to have done it . I was advocating to do this back in march. But again, it depends on what happens with the real economy here. The real economy is actually on balance, quite good. Your 2 number is too low. To be sure inflation is measured by pce is a low number, way below the 2 . The triple mean calculated by the dallas fed and cleveland fed, they are running about 1. 6 on a consistent basis. Employment numbers are good. Housing numbers in terms of homes sold are good. The auto numbers are good. Theres a lot of good thats going on in the economy. So thats really what the fed focuses on. Not on they are going to be mindful of market stability, mind you. I wasnt the only person at the table saying we are going to get a correction, things are overpriced. Dont go wobbly. We love a good debate and expect more out of the jackson hole meeting later this week. Richard fisher, thank you so much. Thank you, kelly. Check out my latest piece on the spark why a fed hike could lower Interest Rates. Coming up, todays historic losses arent only hurting investors, public Pension Funds are feeling the pain, too. Well talk with the largest Teachers Pension Fund in the world. Todays selloff is hurting a ton of investors but could be a good thing for deals. What are you working on . Let me show you. Okay. Our thinkorswim Trading Platform aggregates all the options data you need in one place that lets you visualize that information for any options series. Okay, cool. Hang on a second. You can even see the anticipated range of a stock expecting earnings. Impressive. Whats up, tim . For all the confidence you need. Td ameritrade. You got this. 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I have three children that are going to grow up here and i want them to be able to enjoy all the things that i was able to enjoy. Together, were building a better california. Here is a look at the declines today. A historic and unforgettable day in the markets. The dow opened lower, almost 1100 points. We closed down 588. That was good enough for a decline of 3. 5 . S p down almost 4 today. Nasdaq 3. 8 . All eyes already turned to the asian sessions and what more may be in store. Shanghai last night sold off 8 . That put a lot of this into motion today. Individual and Institutional Investors have been tracking todays roller coaster markets. We are joined by chris ailman. Welcome to you, sir. Good to see you. Does a market day like today mean more our retiree money across the country what happens to all the pension promises you made . We are long term. We have a 30year horizon. The pension promises do not change at all. All this is is choppy seas in the middle of a market that we keep our view in the longterm horizon. We are going to ride this out. Today is uncomfortable and a difficult day. Do you rebalance . What is the portfolio and do you choose opportunities like this to rebalance . Weve got about 55 in global stocks with a weighting toward the u. S. We like the u. S. More than the rest of the world. We do rebalance. Weve been shaving off profits since springtime. Ive been saying a long time i think the market is long in the tooth and this bull market was getting old. This change in direction is probably going to cause the market to be choppy. Certainly like you said, we are going to watch china tonight. The market will be choppy for a couple more weeks. The key is the u. S. Economy is still in good shape. Im interested to hear in your Global Equity portfolio, you still prefer the u. S. Given with a very longterm orientation you hear people say emerging markets are a mess. They scream out looking cheap if you have that longterm time horizon. I agree with you. When you look at the overall Global Economy, tilted toward the u. S. , but weve been shaving profits. We went long japan over a year ago. Weve been feathering in trade slowly to europe. Weve been looking at the emerging markets. We are worried about a hard landing in china. Weve been holding off. You are right. They are going to present opportunities. They are not universal. Its not just all one market. Ive got to pick specific countries to get this right. A lot of the action this morning was in treasuries with the 10year note falling below 2 . Are you buyers of treasuries and are you short term or long term on that . We are always long term. Actually when i said we were shaving profits in the usa, one of the things we were buying were the treasury bond ultracontracts to try and build up that exposure to treasuries for this volatility. Those are great portfolios and a great product that can help balance us out diversification. What is it that you guys expect to earn as a return here . We know that calpers had a tough year and that a the low Interest Rate environment persists, the harder it is to find 7 , 8 returns. Its been a tough environment since the year 2000. Its difficult to add value. Last year was a low year. With a 30year horizon, i on say its a marathon for us. Its the pace per mile. One year is one year pace per mile. I care about the three and five year number which is over 7. 5 for us. 2014 looked like a tough year just like 2015 is proving a tough year. We think if you watch longer Term Investments like real estate, private equity, we think you are going to start to see those kick. In those lagged this fiveyear bull market. They have opportunities to grow. Chris, thank you so much for joining us. You bet. Thank you. Chris ailman. A fall back down again. All this action could be good after all for deal making. M a veteran will explain coming up. If you were busy checking the state of your 401 k , stay with us. We have a 401 k manager and market psychologist to share how to approach this volatility. Welcome back. Stunning moves in markets today. Here is a look at the open. Only took a couple of minutes for the dow to plunge more than 1,000 points and almost just as quickly, it started to climb back. We are down almost 1100 points at the lows of the session today. A lot of that made up during the day as european markets began to close. Here at one point declines were down to as little as 2 or so. We went out with the dow down 3. 5 or 588 points. These market moves putting Retail Investors on edge. 401 k websites seeing plenty of action today. Lets bring in mike queen of hightowerer and market psychologist daniel crosby. Daniel, let me begin with you. A lot of this is about the psychology seeing declines and reacting to them. What do you think people should be doing here . There are a couple of things people should be doing. I think the first thing is that people need to remember that the most important variable is in their control. Thats their behavior. Thats a better predictor of reaching retirement outcomes than any other factor. Whats happening in greece or china or whats happening domestically. Second, people should be working with outside help. Studies by morningstar, vanguard although that people who work with third Party Advisors do 2 to 3 better per year than folks that choose to go it alone. Those two easy places to start. Mike, when you are getting calls and frantic emails today, what are you telling people . Not to panic, not to jump out . People havent panicked. People on the west coast didnt have time to capitulate because most of that down action happened before they were awake. Right now we are telling people to cue up their money. Probably fools rush in where volume investors fear to tread. I think we have time. I love the sheer brutality of this move because it means the timeline is somewhat compressed in this cycle. One issue with this bull market has been the broad public seems to not have been quick to get involved. A lot of Financial Advisors talk about their biggest job is getting people to get their equity allocations up to target. Will this make that job harder . No. What weve seen is the headlines today will get peoples attention like last week. People are reaching out to us and other advisors and talking about increasing allocations to equity. I think its a good opportunity. We are not seeing panic. Im of the belief 2008 taught a lot of individual investors to act more like institutions. They are not overreacting. They are looking at it clinically which is a very different and legally way to go. What do you tell a Retail Investor spooked by entering this market hasnt gotten in after the financial crisis . Since then we had the flash crush and headlinegrabbing moments like todays where the dow went down almost 1100 points. Usa today reporting some of the retail brokers had trouble at the open letting their traders get in. How do you convince a Retail Investor long term the stock market is the place to be after these headlines . I think you need a sense of history, first of all. You need to educate them. Secondly, you need to help them come up with a plan thats right for them because there is no arbitrary plan, there is no specific Asset Allocation that is best. If they need to buy comfort in the form of an allocation to cash or treasuries to tip toe into the market, thats helpful. Another thing i do, i tell them to do a trick i learned from cnbcs own downtown josh brown, which is to set limit orders on stocks theyve always dreamt of having but felt like they missed the boat on. Setting limit orders for their ten favorite stocks, netflix, apple, disney they feel they missed the boat on. Setting a low price and maybe they get lucky which helps adopt more of a contrarian mindset. I love it. Thank you both. Buying on the dip may not be the only deals out there. Up next, well examine if this is the ideal time for mergers and acquisitions. Be sure to catch mark cuban on fast money at 5 00 p. M. Eastern. Eligible for medicare . Thats a good thing, but it doesnt cover everything. Only about 80 of your part b medical expenses. The rest is up to you. So consider an aarp Medicare Supplement insurance plan, insured by unitedhealthcare insurance company. Like all standardized Medicare Supplement insurance plans, they could save you in outofpocket medical costs. Call today to request a free decision guide. With these types of plans, youll be able to visit any doctor or hospital that accepts medicare patients. Plus, there are no networks, and virtually no referrals needed. Join the millions who have already enrolled in the only Medicare Supplement insurance plans endorsed by aarp. And provided by unitedhealthcare insurance company, which has over 30 years of experience behind it. With all the good years ahead, look for the experience and commitment to go the distance with you. Call now to request your free decision guide. Welcome back. It was a brutal session in markets for everybody with declines 3. 5 to 4 across the board. Not much green in the s p 500. We were looking at some of the worst performers for you. Not surprisingly given the sharp down draft again in oil, there are a lot of oil and gas names. Newfield down 10 . Freeportmcmoran another 9 . Marathon oil rounding out the top five. Earlier this month, global deal activity hit 3 trillion. We could now see more deals on the horizon. My next guest says this selloff is good for mergers and acquisitions. Joining us is frank aquila, welcome to you. I understand Companies May be cheaper now, but its hard to imagine board rooms will have confidence to act in this environment. Right. This is a positive and negative. One of the big concerns in the last couple of months is equity prices were getting, particularly of takeover targets, were getting ahead of where the value was. This sort of selloff is a little bit more than you would have hoped for. At least it keeps equity prices constrained. The point you raise though is what does it do to confidence . This is sort of a good time to have this happen from an m a perspective. Very little happens between the middle of august and labor day. To the extent that theres a certain amount of volatility now and then you have some certainty come back into the market and i market and maybe the market come back a bit and it doesnt affect the underlying economy, that should overall be good for m a. I wonder how that psychology plays out with potential sellers in a potential m a situation. Where they anchor themselves in where the stock price was do they have to slowly come around to the idea maybe we should explore options and come somewhere in between todays price and that one . This was a big factor, if you remember, back in 2007, 2008, where companies had really come way down. I think were not talking about that level of collapse. What were really talking about is stocks coming down a bit. I think still with good takeover premiums they would be above their 52week highs. It really works well if the market continues to slide, then were back into the type of situation that we saw a few years ago. Frank, energy found itself at the bottom of the list today in terms of the s p sectors. Down 5 today. Down 25 so far this year. If those companies are so cheap, where are the deals . There has to be consolidation in that sector. And people have been saying that for a long time. And thats one where potentially just market capitulation is going to lead to some of those deals happening and probably at prices that people wouldnt have accepted even a few months ago. Where do you expect the most pickup . So when people like you said they come back, theres been recent prices and he this think nows the time. What industries in particular might this be a real catalyst for . Well, i think in the Health Care Sector where again, everything was viewed as a takeover target. So a lot of prices were moving up very quickly. So i think thats going to be an area. Tech is probably going to be another area were going to see consolidation. Energy is long overdue. But by and large its going to be what weve been seeing all year, which is across the board. Maybe not in Financial Services but the rest of the market. I want to home in on one other one, telecom and media where it seems like for loths of structural reasons a lot of these Business Models maybe are in flux. Im sort of surprised that the markets only picking up on that now. These trends have been in place for a while. Ive certainly been watching netflix for a long time. I dont understand why the market hasnt gotten on to it. But i think were going to see it there as well. Well, frank, you might have a busy fall. Well let you go. Thank you for joining us. Frank aquila from sullivan cromwell. A historic day in the stock market. Were also hearing now its the second highest dollar value traded ever. Up next, melissa lee joins our panel to recap today and well map out tomorrow. Tonight at 7 00 eastern dont miss our special report markets in turmoil. Were monitoring the asian markets as they begin trading and well preview what lies ahead for the session tomorrow. Again, thats 7 00 eastern here on cnbc. First in business worldwide. Theres a difference when you trade with fidelity. One you wont find anywhere else. Onesecond trade execution. Guaranteed. Did you see it . In one second, he made a trade, we looked for the best price, and the trade went through. Do the other guys guarantee that . Didnt think so. Open an account and find more of the expertise you need to be a better investor. Welcome back. Lets get some closing thoughts here on todays historic, almost unbelievable trading session. With the panel and fast moneys melissa lee, who joins us now. You guys are talking to mark cuban, is that right . Yeah, we are, kelly, and it will be interesting to see what he says about this market. As i talked about on friday, we as an Investment Community have been conditioned to basically buy these dips. This time it didnt happen. But we will see what mark cuban is buying because he has gone into the market and bought some stocks. Aside from that, kelly, i dont know what you guys think, but in terms of the Market Action today, crazy day and im not convinced necessarily that the markets found equilibrium at this point. Mohammed alarian tweeted out this very good comment, which the wild swings plus volatility indicate a market that is struggling to find some sort of equilibrium. This time around, though, we dont have earnings season to latch on to, no nearterm catalysts, only the market trying to find what the fair price is on the s p 500. Mike . I agree. Were in an environment now where for months conditions changed a lot more than stock prices did. Now stock prices are moving around violently more than conditions are changing minute to minute. So price is more reacting to itself. Thats why i think this morning we came into the day oversold by a lot of measures. Obviously the machines found down 1,000 on the dow was far too oversold for the short term but again, were now in this cycle of whats china going to do when it opens . I was just going to say its the china contagion factor. Dont forget we started the session with an 8 1 2 plunge in Chinese Markets and thats the root of the problem. That really is the eye of the storm. And thats why were watching the dow so carefully, not just because these point moves are extraordinary but these are the more internationally exposed big cap multinational companies. And just to give you a sense of them, and there are a number of stats you can go through to show the unprecedented activity today, heres one. The worst threeday point drop for the dow ever. The dow down nearly 1,500 points in just three days. Thats not what it used to be from a percentage basis. And weve been down a lot more on a percentage basis. But stunning moves that we havent seen in years. I agree in terms of watching some of the multinational, the large cap companies. But the fact of the matter is the selling is brutal and has gone across Asset Classes and across market caps. In fact, if you take a look at the russell 2000, year to date its doing just as badly as the rest of the indices. So right now the pain is being felt across the board. And if were waiting for china to step in and do something, think about this. China has cut Interest Rates four times since november and its been met with selling every time. Chinas moves have gone from missiles to basically paintballs. And with every single move that they make its making less and less of an impact. And thats something to keep in mind as we wait overnight to see how the markets are going to open there. I was just going to point to one other sign of the relentlessness of this. Three Straight Days of declines in the major u. S. Index ppz only happened three times before. Weve had much more bear market type activity. But thats the consistency of a down 2 day has been relatively rare. Couple more stats. According to Credit Suisse this was the second highest dollar value ever traded in u. S. Stocks. About 625 billion worth changed hands today. That is because of higher stock prices. The only day we saw higher dollar volume turnover was in the depths of the financial crisis, september 18th, 2008. And in terms of the number of shares, though, today was 37. So theres a lot of people lo looking for the context of the severity of these moves but were still shaking out whether its so much of what weve already put behind us or so much of what might be to come. Melissa . Yes, kelly. Actually, you know what . Just to highlight the volume and the activity today, it was the highest volume day since october 4th, 2011. Just absolute volume it was also a really heavy day. Well see if this is capitulation. But three days doesnt make a correction necessarily. Thats what a lot of participants are saying out there. Well have to see what comes here. It should usually take more sessions than that anyway. Well leave it there for the time being. Mike santoli, sara eisen, thank you so much for your help on closing bell. On that note, melissa lee take it away. Thank you, kelly. Cnbcs breaking coverage of this historic selloff continues. If you are just joining us, today was the day wall street looked into the abyss. A day market by fear and chaos. The dow falling 588 points. At the lows we were down as much as 1,089 points. Not a single component finished higher. Jpmorgan was the worst performer on the day. The dow just registered its worst three Straight Days of losses since the 87 crash. The s p fell almost 5 today. It is now in an official correction. Energy was the worstperforming sector there. The nasdaq at one point fell as much as 8 in early trading, closed lower by nearly 4 . It has now lost 11 in just one month. Is the correction we just witnessed about tour

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