Transcripts For CNBC Closing Bell 20240712

Masterca mastercard, microsoft and u. P. S. All lower on the back of their results as well. Bund yields and oil are lower. Tenyear yield, 0. 77 . All 11 s p 500 sectors are lower, sharply lower thats the heat map of all s p 500 stocks very few are green as you can see above me just less than 3 of declines for all three of the major indices, sara. We will ask allianz chief economic adviser mohammed elbrian. Monitoring two live events at this hour, expected speech from french president emanuel macron and a statement from dr. Fauci mike santoli covering the market selloff meg tirrell with more details on the covid spike in the u. S. And europe and ylan mui start us off with the selloff, mike starting to do some damage third day in a row for the s p. Its starting to cut a little deeper the hope gave way and did accelerate the down side multiple pressure points on this market causing investors to have a harder time looking across this valley of growth, right covid case cuts. We dont know what shutdowns are going to look like look at the interesting levels here september lows, couple of percent where we are right now lets say 3,200 there. We closed a little above that on the lowest close of that period. Also right here, august 3rd. Thats your threemonth window ahead of the election. A lot of people talk about what the market does ahead of an election sometimes, has barns on whether the incumbent party stays in power its hard to say that the election has nothing to do with whats happening right now its a risk event a few days ahead of time. Maybe nobody necessarily wants to step in and add more risk to that s p 500 from right before the 2016 election. The reason i want to this is actually through the year end 2016 this little slide right here, the market was heavy and range bound and kind of bearish and churning for a while here this is brexit. Big snapback from there alltime high in august this year then slouched slower this is late in the week before election day i dont say it because its predictive of any outcome or about the policy implications. Its about a big known event with a binary outcome not too far in the future. The market clenches ahead that have we could be seeing Something Like that even if the longer span of history shows rallies ahead of election sometimes right before tenyear yield, kind of interesting. Definitely seeing it back off the highs we had coming into this week, but not really doing anything tremendously dramatic. 78 still above where we started last week. You can kind of still say its not a run for the hills, you can lose ten basis points off of this and it would start to seem like, okay, fine, were back in the bunker right now its much more concentrated in equities, guys. Bonds arent in panic mode. The rising covid numbers mentioned, the election risk that could keep investors leery. What about earnings . Yeah. Is any of the selloff being blamed on earnings, microsoft warning or are those stocks selling off despite better numbers . They have been playing defense since the september 2nd highs. Weve not been able to return to their highs on the rallies and the Broader Market i think microsofts revenue guidan guidance, downscaling it a little bit, is one other reason to be concerned about how much of a snapback were going to get in general, in earnings. You have this situation where beneficiaries of the shutdown, within six or eight months, are going to be facing tougher comparisons and the victims of the shutdowntype economy, are we going to be able to see a snap back to make up for that . Those are the questions. The market has traded badly off of all the Earnings Reports this period youre still talking about 15 year over year declines. Its all about what they say, is the Fourth Quarter going to be a decent growth quarter or not, both for the economy and earnings the jury is out right now. Maybe the high stakes are building for tomorrows fang results that were going to get. Thanks so much, mike. More to come from mike, of course, throughout the next couple of hours. The u. S. Setting another record high for average daily coronavirus cases over the past seven days European Countries are seeing concerning trends as well. Lets get to meg tirrell for the latest on these worrying numbers. Meg . Yeah. Well, dr. Anthony fauci just started an interview with the journal of the american medical association, saying we are not in a good place. Thats really an understatement. Were at new records in terms of daily case counts in the u. S sevenday average more than 71,000, higher than any of the previous peaks weve had flesing more than 34,000 americans in the hospital with covid. Deaths have started to tick higher as well daily recorded deaths now more than 800, though not as high as we saw in the previous peaks now, the spread around the u. S. Is really spread out check out where cases are growing fastest in the country evercore isi el paso still leading the country over the border, las cruces, mobile, alabama. Were three to four weeks possibly behind europe take a look at what cases are doing in countries there france seeing a major spike. Youre seeing the same in the uk, spain, italy, germany and the netherlands. Of course, more restrictions coming down there. Germany flus interviewsing a lockdown light, and france, of course, tonight expected to potentially announce something similar. Were waiting to hear more from macron over to you. If the guys can bring up your final chart again, the difference, i guess, is that europe is reacting a little quicker than the u. S. Is for example, germany there with a onemonth lockdown was announced today, is seeing its line, the red one, rise pretty sharply and that is partly why theyre taking this action but their cases are still below. Theres a difference in response between the u. S. And europe as well as difference in numbers. Yeah. Sort of the threshold of when to act is a little bit different. Theyre taking a different approach, too, as they are closing these businesses they are offer them economic support to try to help them get through it theyre facing protests across all of those countries the pandemic fatigue is real were seeing that in the u. S. And in europe, too. Meg tirrell, thank you. Big tech stocks are sinking today. Ceos of facebook, twitter and alphabet, finishing up a marathon hearing in front of the Senate Commerce committee, focused on transparency, censorship and liability ylan mui has the highlights for us yl a n . Democrats and rks spent as much time fighting with each other as they did with the tech ceos gop senator ted cruz delivered one of the most dramatic moments of the hearing he had some choice words for all three executives but singled out twitter for the way it handled the New York Post story around hunter biden and accused the company of trying to censor conservatives. Mr. Dorsey, who the hell elected you and put you in charge of what the media are allowed to report and what the American People are allowed to hear and why do you persist in behaving as a democratic super pac . Reporter now in response, democratic senator ryan sh otz delivered an impassioned plea of his own, encouraging the companies to stand up to what he called republican bullying and to safeguard the election. Whats happening here is a scar on this committee and the United States senate what we are seeing today is an attempt to bully the ceos of private companies into carrying out a hit job on a president ial candidate by making sure they push out foreign and domestic misinformation meant to influence the election. Reporter now all three ceos defended their content moderation policies, guys. And they said their rules are applied without political bias back to you. Ylan mui, thank you. Just starting to get headlines out of france where french president macron is speaking, up to 36,037 new confirmed cases in the past increase from 33,417 tuesday all regions in france are now on high alert regarding covid macron saying the second wave is likely to be worst than the first wave those are the headlines so far well bring you any restrictions or lockdown procedures if he announces them, after germany announces a partial lockdown, including closing bars and restaurants earlier today. The dow down session low down 900 almost 3 move here. It is broad. Stayathome stocks are getting sold off and the recovery stocks are getting sold off every sector in the s p is down at least 2 . Technology hit the hardest down 3. 5 . After the break Mohamed Elerian will tell us whether to sell off after the election or whether hes buying this pullback youre watching closing bell here on cnbc in a few moments, Rackspace Technology will enter a new and exciting chapter. Across muticloud, apps, data and security, we focus on solving the business problems of our customers with technology we are a type of company the market has not seen before. Going public will further invigorate our mission to embrace technology, empower customers, and deliver the future. You can go your own way go your own way your wireless. Your rules. Only Xfinity Mobile lets you choose shared data, unlimited or a mix of each. And switch anytime so you only pay for the data you need. Switch and save up to 400 a year on your wireless bill. With the carrier rated 1 in customer satisfaction. Call, click, or visit your local xfinity store today. Weve got 46 minutes left of trade. Down near session lows down near 812 points, s p down 300 points so is the nasdaq french president macron is speaking now, announcing new lockdown measures for france schools will stay open but new measures starting on friday. Moving between regions will not be possible. Bars and restaurants will be shut this, after germany today, Angela Merkel, announcing a partial lockdown next month for that country as well to try to control these rapidly rising case cases of covid across europe Mohamed Elerian, chief economic adviser at allianz how do you factor in these shutdowns and cases into the Global Market right now . Theres a 50 50 chance of europe going into recession. The reason its not higher than that is because of germany and its manufacturing skter. Italy, france, the uk, spain, just to name a few, are going to see a doubledip recession thats bad news for companies. It is bad news for the economy its bad news for quality. How does that factor in here to the United States we have been warned were a few weeks behind europe. Were starting to see regional shutdowns in places like chicago, of certain things t doesnt feel like theres enough political appetite to do what theyre doing in europe here what does that mean for the u. S. Economy and u. S. Markets so i was on your network ten days ago and i said keep an eye on europe. Were learning at that time a few things one is the second wave spreads really quickly it does result in higher hospitalization, not death the panacea gets overwhelmed quickly and governments try to do something to stay very focused but find it very hard to implement. We end up with lockdown light, as germans are calling it, which includes everything but schools. Essentially, you shut down a good part of the economy its not as bad as back in march and april, but it is notable in terms of what it does to peoples confidence in addition to what theyre able to do. So, mohamed, do you think its inevitable that the u. S. Will follow suit a month behind europe in terms of both cases and, therefore, reaction to it or whether its because of the cases not following, or just that the government is less willing to impose lockdowns again, do you think the u. S. Could continue regardless . So, as a scientific issue and political issue, i think most of the science tells you that the u. S. , unfortunately, is on the same path. So, yes, were going to have rising cases yes, were going to have rises hospitalization. And, unfortunately, despite better treatment, were going to have higher deaths now, when it comes to what to do about it, there its about politics governments are tough. Wilf, you heard me say one of the toughest things to do right now is to solve simultaneously for public health, normal economic and social interactions and personal freedom and no one has found a way to solve all three. So youve got to sacrifice one which one you sacrifice ultimately is a political decision. Mohamed for the u. S. Markets, though, theres sort of a perfect storm this week, three factors applying one of them, cases, as weve been talking about the other is lack of stimulus and the third, of course, is the election next week one could also make the case that two of those could be solved as issues for the market within the space of a week is that optimistic outlook on the u. S. Equity market a reasonable one so, i think it is really whether you believe fundamentals matter or not. In the past we had an even longer list. And what we found over and over again is this combination of buy the dip. Theres no alternative the fear of missing out, all of had an comes together supported by Central Bank Liquidity and gives the market so what well be testing is behavioral, wilf this is all about behavioral with the conditioning thats been so deep and has been rewarded in the past, will it again kick in or not the reason the people are worried about the length of the selloff is the longer you wait, the hardest it is for this to kick off the length of the selloff matters as much as the extent of the selloff. It also raises the question, mohamed, of whether jay powell and the fed can come to the rescue again are they all in, or is there more they can do in the absence of fiscal stimulus and with rising headwinds theyve been all in for a while. It has been pedal to the metal for quite a while. So will they try to do something . Maybe. They are very afraid of the feedback from disruptive markets back to the economy. Having said that, they have a really tough situation, because were not going to get fiscal until maybe early in the year. Because of that, theyre going to carry an even bigger burden and risk being effective my own gut feeling is that theyre going to try to do something. I dont think they extend it to equities but i think theyll try to do more the market, at some stage, will have to ask the question, is that enough . Its necessary, but is it sufficient if were not seeing fiscal stimulus and if were not seeing a turnaround quickly in the economy is this. Mohamed, i guess most people expect we will see fiscal stimulus even if, as you say, its not until january its not like january is a year away so perhaps volatility continues for the next couple of weeks, even couple of months. If we do see stimulus early next year and, of course, the fed stays supportive, will equities be a lot higher in four or five months time as they are today . That question is about conditioning behavioral. It is not it is not about the economics of a fiscal stimulus markets are so disconnected from fundamentals that really its about what maintains the disconnect wilfred, dont make the mistake that many people are making. Stimulus in january is not the same as a stimulus in october. Because between october and january, real damage gets created. Companies go bankrupt. People lose jobs income insecurity goes up. So there is this scarring element. So, a stimulus in january would have to be much bigger than it would have been in october, because youre also dealing with the damage in the interim. So, this notion that it doesnt matter when we get the stimulus, as long as we get it, is does matter when you get it. Mohamed elerian, always great to catch up. Thanks for joining us. Thank you. 39 minutes left to the session. Down 3 for each of the major indices. Its been plus or minus above that 3 line the last hour we are below it as we stand. All three of the major averages sharply lower. After the break, much more on this selloff. Plus a look at two names that are higher amid the sea of red today. Plus well focus in on the tech stocks and discuss whether theres more downside ahead for veorinheinsts t likes of facebook, twitter and alphabet were back, 35 minutes left to go in the session the company seeing high demand for gaming and Entertainment Division the stock, as you can see, up 5 shares of ge also higher on the heels of their earnings, positive cash flow, improvements in its Renewable Energy business it was up 9 earlier in the session, up 6 sara still ahead Liz Ann Sonders tells us whether she sees the selloff as a buy opportunity. Down 773 on the dow. Slue of earnings after the bell, visa, gilead,etsy. Yields are mixed today were not seeing the same kind of move, panic move that we see in stocks in bonds tenyear note yield is higher now,. 77 reversing its earlier decline. A little bit of buy iing of saf haven bonds at the short end of the curve and the long end, with yields under pressure, 1. 56. Tech down more than 3 lets bring in found iing partn monique, ill start with you on this broad selloff. Well get to the hearing in a moment do you think this was long overdue . Its interesting it also comes on a day when microsofts earnings werent too bad. I dont think its long overdue. I do think its a reaction to a few things that are happening. Big spike in covid cases another stimulus not seemingly not coming, and i think that Public Market investors, i think Public Market investors are just feeling the pinch a little bit and losing a little bit of confidence, but tech is not going anywhere in any longterm investor is still going to be buying tech stock. Alec, to what extent do you think selling today say reaction to the hearing and the expectation that regulation changes in the law are coming techs way at some point in the next 12 months or so yeah. To be honest with you, i dont think the hearing played in very much at all. Typically, were used to seeing these ceos stand in front of congress and share their viewpoint. Congress asks questions that arent very relevant to the business nothing ever happens and the stock goes up. So, i mean, most of the time Mark Zuckerberg goes in front of the senate, he makes a couple of billion dollars, he doesnt lose them this is bucking the trend from that standpoint. Monique, you see a threat, potentially here, to the Public Market evaluations of these companies if there are changes made to section 230, which you are hearing calls for from both sides of the aisle what do you think is in store . Definitely. I think if, you know, section 230 is reformed or rolled back completely, its definitely going to impact Public Market sentiment around bigtech stocks even more importantly, i think, is that its going to impact venture capital, private market activity around new and emerging companies that are social platforms that cant as easily defend themselves around potential lawsuits i think the early stage sector is actually, you know potentially has the most impact on this. Alex, what have you made of the hearing so far not so far its finished. What did you make of it . Do you think theres anything of substance in there that we can conclude maybe the direction that lawmakers want to take things yeah. I think Congress Really embarrassed itself today theres a reason why 74 of americans think the tech giants are monopolies but 69 of them say politicians today arent capable of reigning them in. Were talking today about content moderation, which is a way for both parties to say we want you to leave up or take down content that benefits us electorally, but they cant sign a bill together that says we need to make laws that are updated for todays world, where competition policy doesnt have to go back to the sherman antitrust act signed in 1890. I think congress today, since its already adjourned, should be working on a stimulus instead theyre talking about whether or not theyre censored or not the politicians who make the biggest stiffening about this seem to do the best on facebook so it all seems ridiculous to me. Monique, which Party Winning the election or what makeup of congress would be best case for some of these tech stocks in the crosshairs and which would be worse . Still tbd i think a lot of this is a bipartisan issue, especially around addition location around section 230, but the issue is that while a lot of Congress Sees this as a big tech issue and that theyre going after big tech, what it actually does is hinders innovation in their own district i mean, every single district wants to be like the Silicon Valley of the region if you are hindering innovation and the ability of small startups to basically start Small Businesses, youre hindering their ability to start and grow into larger concerns and have this sort of exit and, you know, ipo opportunity, then youre really hindering why your own district and your own innovation in these regions that are not Silicon Valley a lot of people see this as a big tech issue when its really about hindering small business, hindering innovation and not getting to that ipo opportunity. We also just recently saw a big ipo with root in columbus, ohio. These are the kinds of stories we want to see you know, they opened and then they pop over 3 above forecast. These are the kinds of opportunities that we want to see in places like ohio, but with additional regulation, and the way that, you know, both sides of the aisle are approaching it, were not going to get to see that. Finally, alec, these tech stocks are getting hit pretty hard s p warning at the beginning of the week microsoft disappointed with its outlook yesterday. Are there starting to be real concerns about i. T. Spending in the back half of the year and into next . Well, look, without a stimulus, you kind of throw up your hand and say whats going to go on with the economy . I mean, for the first half of this covid experience, tech stocks have been the stocks that people have looked to, to sort of pick them up. Its not been completely rational how do you explain apple gaining 1 trillion in market cap in a few months so i think there is a correction in store were not going to go through a really pretty time economically over the next few months and tech is going to get hit by that as well. Thank you for joining us on the news today, Monique Woodard and alex kanorwitz under 30 minutes left before the close. Let get to our daily coronavirus track er european leaders implementing stricter lockdowns today Angela Merkel and leaders have agreed to close bars, restaurants and gyms until the end of the month and french president macron, bars and restaurants will be closed schools, however, will stay open universities will be online. Those will begin on friday, last until december 1st france just reported 36,037 new cases in the past few hours. Major metropolitan hours are working to slow the spread as well Governor Pritzker rolling back reopenings bars and restaurants no longer offering Indoor Service and large Gatherings Limited to 25 guests newark, new jersey, has implemented tighter restrictions as well. Nonessential businesses must close their doors at 8 00 p. M. And rules have tighten for the record salons, barbershops and gyms newark, new jersey, has 28 states and territories on their quarantine list. California being the latest there. Connecticut and new jersey added massachusetts to their list as well the tristate area, illinois accounts for a large portion of u. S. Gdp with those regions contributing around 16 , at least, to the total. It matters to this economy dr. Anthony fauci will join the news with Shephard Smith to discuss the headlines. That virus tracker was a long list today as these rollbacks continue to come back. A little deja vu were doing it differently, with more knowledge but the emotion is there and you see it playing on the marks today. Particularly in europe with the dax closing down 4. 2 . What about the u. S. Markets . Bob pisani, just off the lows as we speak. About 15 points, but still a pretty bad day one word, lockdown thats the problem thats not in the reopening narrative. Thats against the reopening narrative. This say 3 takedown of the whole market take a look here i want to show you its very unusual. The whole market is essentially down 3 . When you see the s p 500 and the s p small cap down essentially 3 , thats a little usual for one day. What you see value and growth, both down essentially close to 3 in a day, 2. 5 , thats a little unusual thats a takedown of the overall market people are lightening up on their positions. Factor etfs. When you see momentum, normally running in opposition to low volatility, they dont move together theyre both down 2. 5 , same with the socalled quality down 3 thats a takedown of the market. The sectors today, you get the same cyclical names like tech and industrials down 2. 5 , and then the opposite, defensive groups Like Health Care and consumer staples, theyre down 2. 5 theyre just lightening up on positions across the board its not a sectoral play at all. You have the final problem of no guidance how many companies, u. P. S. Today among them, declining to essentially provide any guidance out there. U. P. S. Had terrific numbers overall, but you see selling off here it had a big runup after the last Earnings Report that lack of guidance means, again, Fourth Quarter and now first quarter, were not going to know whats going on. We saw how off the analysts already were in the second and third quarter. No guidance and call it lockdown light if you want. Thats a big issue for the markets. Back to you. Well, its hard to give guidance when its hard to see in front of you, whether well get more lockdowns, what theyre going to look like, rising cases, lack of vaccine lot of uncertainty out there bob, thank you. Speaking of u. P. S. , lets drill down deeper into that name its dropping sharply today. Frank holland has more on the quarter. Falling sharply down more than 8 on pace for its worst day since january 2015, despite a beat on revenues and really strong beat on eps, 38 above stichlt estimates. A real surge and less profitable residential delivery during rnings call they explained how theyve been limiting volume, domestic package segment that handles ecommerce saw its margins fall by 2 . As bob pisani mentioned no earnings estimates for u. P. S. , but another quarter of margin pressure shares of u. P. S. Down more than 8. 5 back to you. Thanks so much for that, frank. Heading into the final 20 minutes or so of trade, lets bring in Liz Ann Sonders from Charles Schwab thank you so much for joining us good to see you, as always theres quite a few reasons out there for why were selling off. Which stand out most of all for you . There are more catalysts than causes maybe thats just an exercise in semantics. One of the underlying problems that established the situation where we see a resurgence in cases, stimulus package being passed preelection is that as the market is doing well, it was accompanied by speculation certainly by the cohort of day traders. You were seeing that in the Options Market in many cases across fundamentals that sentiment environment sets up the possibility that causes a reversal in some of those recent trends and as you suggested, wilf, we have plenty of recent catalysts. Liz ann, how much of this, do you think, is the fact that the election is next week and linked to that is the question mark over when we do see stimulus and i guess im asking, how quickly could things turn around all of a sudden within the space of a week . I think part of it that might be election related is that its somewhat normal as you get closer to the actual election days that some of the polls have narrowed a bit, particularly in some of the states that have been seen as sort of must wins for trump. And i think in an environment where the polls are more decisively in favor of a biden win, the related assumption there was that we would have less chance of a contested election and, in turn, a greater chance that priority number one would be a stimulus package. I think now coming into the narrative in the event we are looking at a much closer election, is an increased likelihood of a contested election i think that was clearly a volatility driver back in early september. And the fact that with that uncertainty, on a congressional level then you start to push out the timing for a Fiscal Relief package beyond what a market is comfortable with. If you look at some of the hardesthit names, lizann, most names are down today if you look at where the pain is, its actually in technology. These stayathome winners zoom is down apple, microsoft all of these names that had worked for so long on the idea that we were going to be staying at home. If it really is about rising cases, why arent those names working on a day like today . Do you think their multiples are just too high . Is there more opportunity there . Well, the speculative fervor i was talking about that youve seen by this particular cohort wasnt just in the Options Market, in the individual stock names. It was in those concentrated names. Not just the big five that we often talk about that recently hit on the s p, but those highly popular names. I think right now, theres just a sell where profits have been its not just an adjustment of the narrative. I think its rethinking whats going to happen to the economy even absent any kind of mandated shutdowns. The impact, without a stimulus package that human beings and Small Businesses simply make decisions by virtue of the virus. Strain on economic activity. Were starting to realize that you dont need mandated shutdowns to see a Significant Impact on the economy simply because of the uncertainty. How much are you watching the bond market and what messages are you taking from the moves weve seen there you know, its been relatively quiet you havent seen the kind of maybe spike in yields you might expect to see or plunge in yields making an assessment on t the overall economy longer term. This is more about a pullback phase, a corrective phase that might have been more necessary in the equity market that tonight necessarily need to translate into a similar amount of volatility on the fixed income side. So i think the shorter term story driving the relatively less activity and the fixed income side and much more volatility on the equity side. Liz ann, thank you for joining us on a big day like today. Liz ann sonders from Charles Schwab we are now going straight into the closing bell market zone Cnbc Mike Santoli to break down the crucial moments of the trading day. Today weve got josh brown from ritzholt Wealth Management well kick it there with the Broader Market stocks selling off hard again today with covid cases rising in the u. S. Notable underperformer led lower by facebook, twitter, google ceos of those threet Tech Companies testifying earlier before the senate about content moderation practices today do you think thats partially to blame here, josh, or is it sell the winners and sell everything kind of day . Yeah, i think its the latter i think this is just one of those days where you sell what you can. And its easier psychologically, whether youre a Retail Investor or Institutional Investor or even a hedge fund manager, or managing a portion of a hedge fund as a trader, to sell you pointed out, i heard you with liz ann many of the hardest hit stocks are large cap tech, growth tech or whatever. Yeah, because these stocks are up 70 it doesnt hurt as much. You dont feel as wrong. The optics are actually better, too. So i think people are getting liquid and thats where you can get liquid without much of a hassle trillion dollar stocks that are as liquid as water i think that explanation makes sense more than anything else. But you could throw the election out. This is really about the virus and the lack of stimulus, and thats been hanging over our heads for a while. I think people were taken aback at the rate of infection accelerating over the weekend. I guess they always knew there would be a fall surge during flu season, whatever i dont know that many people thought they would have to contend with this at the same time not having had that stimulus bill. And it just compounds all of the negative sentiment around the real economy so, thats my take that being said, let remember the s p is up 6 on the year still. If youre not a day trader, this isnt changing much for you. Having a pretty decent year, considering the fact that a quarter of a million americans are dead, 9 million infected, with the pandemic. Youre still in pretty good shape considering whats really going on out there. Year to date s p is up about 2 now, but nonetheless in positive territory mike, in terms of the key levels, we talked about 3,400 on the s p, of course, earlier in the week. Yeah. What are the key levels to look at now below where we are today . The market several times today has attempted to bounce like 3280. Its where we traded right before the august ramp also, yeah, i do think you want to keep an eye on the september 21st lows, like 3232 or Something Like that at the closing level. That would tell you, all we did was backslide to where we were five weeks ago it certainly is a rethink to how directly what the path is going to be in terms of economic improvement. Fourth quarter gdp, we know it will be way slower than this gaudy number well get tomorrow for the third quarter. The question is, is it really a stall or not i dont think the market is doing a whole lot more except adjusting its expectations relative to where we were a few weeks ago when it was Fourth Quarter rant, any election result is going to be market friendly and i think people were too overexcited about the fiscal stimulus package now weve wrung a lot of that confidence out. I like your use of the word gaudy to describe gdp number its good. Josh, if you are the in camp it sounds like you are that is this is healthy in the broader context of things, are you taking the opportunity to buy on a day like today . 8 off the highs and if so, what kind of stocks yeah. So just to correct wilf, going into today, the russell 1000, when i say the stock market, like the big picture includes nasdaq, includes small and midcap the russell 1000 went in today up 7. 64 you shed about 2 today, give or take up 6 on the year total return, including dividends, a very important part of the mix. I think i did say s p, but anyway it doesnt matter we get the point. Up 5. 75 it doesnt matter. I love you anyway. The answer to your question, sara, as far as what you do in a situation like this is going to be predicated on what you have done have you set the rules in advance for what youre going to do in environment like this . At ritzholt Wealth Management we do two things that are very important for this kind of environment. The first is we partially manage m money in whats called the tactical Asset Allocation strategy its rules based its based on trend. My feelings, my fear about the virus is not those variables dont get calculated into the mix. And clients understand what those rules are. The second thing i think this is more applicable to everyone watching, is rebalance iing. It doesnt seem like much, but if you do this consistently over time, it will work, and it will make you feel better in the act of carrying that out we dont have a calendarbased rebalance rule we have whats known asist opportuni opportunistic rebalance rule if theres no volatility, well only do it once. We did one during the crash this winter leading into spring, and weve held off on the second one because there really hasnt been an opportunity the dow was down 1700 points this week. Were getting close to the point where we say okay, we have one left in the chamber. Fire thats the kind of thing that well be doing on the strategic Asset Allocation side. When you combine those two things, tactical and strategic and you do this in a rulesbased, orderly way, you get through these periods without making big mistakes. Boeing reporting its fourth straight quarterly loss today. Phil lebeau has those details for us. Not a lot of good news. The stock is below 150 a share. They posted a smaller than expected loss for the third quarter, but their negative cash flow will continue through all of next year the expectation is not to be cash flow positive operating cash flow positive until 2022 the outlook, cutting 11,000 more jobs on top of the 19,000 being eliminated this year, delivering half of the 737 max inventory next year, and then the other half in 2022 and the production low point expected in the middle of next year here is Ceo Dave Calhoun talking about when he believes things start to turn around. Vaccine comes, if a vaccine begins to be distributed globally in the first half of next year, by the second half we have a whole new psychology. In light of the incredible number of retirements, of airplanes going on as we speak, i believe that recovery will be quite robust. And a lot of people in the Airline Industry do believe if there is some type of a vaccine breakthrough, that will be the catalyst to move the stocks higher were also showing you airbus here t reportsity Quarterly Results tomorrow dont be surprised if the news is equally as gloomy from airbus as it was from boeing today. Theyre dealing with an industry that continues to be under pressure because of covid19, as it spreads and has a resurgence around the world. Based on what he said there, as the optimistic outlook starts, if we have a bad winter with cases pick iing up for the airlines, does that not move the dial much based on what boeing is pricing in . Wilf, he was saying, look, if there say vaccine breakthrough and lets say hypothetically it comes in march i dont know Something Like that. That is going to be the catalyst to say to the airlines, okay, people will start coming back. They will start booking trips, whether its in the second half of this year or whenever is he definitively saying theres going to be a rebound in the second half of next year no his gut is that it should improve by the second half of next year. Agains the contingency here is if there is a vaccine breakthrough. Phil lebeau, thank you mike, boeing is now down 11 so far for the week. Its down 54 for the year how does the valuation stack up and how much is priced in in terms of how long this is going to take . Zblaes no smart way, in my opinion, to talk about the valuation, based on what the company is operating at right now. Its a massive embedded call option on whether we get back to normal sooner than later the last couple of weeks is everyone collectively pushing out that day perhaps you can be comforted that they managed to raise a ton of capital, took on more debt and they have enough liquidity to keep it rolling for a while. So i do think it was very striking, though, that the stock has basically tracked airbus its not as if its gotten penalized on a yeartodate basis. That was already in the stock before we got into this situation. Hmm boeing shaving 41 points off the dow. 29 out of 30 dow stocks are lower travelers is the only exception right now. All this volatility is creating a challenging. Leslie picker has a closer look at ipo performance leslie thats right, three big deals set to price tonight, Pool Supplies retailer that coincidentally is also called leslies is expected to price a 600 million deal tonight and caliber home and amerihome of course, timing could change theres no indication at this time that they will. Recent ipos trading lower today. Ten biggest deals of 2020, all in the red today, including snowflake, royalty pharma, warner music, Rocket Companies and good rx. Guys leslie, whenever you hear people say that the market is completely overvalued, theres been this huge bubble, its been concentrated in tech, you always get them pointed to the ipo market and how robust its been this year fwl thats true. Talk about the context there. Yeah. So when you look at a spectrum of risk in the equity markets, you start with value trades, Quality Companies and then you move on to the spectrum toward Tech Companies and ipos. Ipos are seen in the equity markets as among the riskiest bets you could make, because why your essentially betting on an untested company, a company that hasnt had a proven track record of posting earnings and beating them every quarter, and things that you could model out so, from that standpoint when you see more of a riskon attitude in the overall markets, you tend to see a riskon attitude as it pertains to ipos. The reverse off is true when you see a selloff happening and people becoming more risk averse in the market. That causes people to shun ipos as well. Theyre not in the mindset for risk taking. Theyre probably also under water to some extent on some of their positions, given the market activity weve seen as of late so, therefore, theyre less inclined to take on more risks by betting on a new company. Thanks so much for that session low, dow down 917 points all three major averages down about 3. 5 as we speak josh brown, are earnings kind of irrelevant now for the rest of this quarter just macro factors are going to drive things such a great question, wilf i think thats true. You are getting like good you are getting good fundamentals in the companies that have reported so far thursday will be a much bigger night. Theres no reason theres no earnings related reason that microsoft is down 4 i understand people are nitpicking revenue guidance. Honestly, its splitting hairs the company is absolutely on fire so i think they are irrelevant i think they basically have been thrown out i think were focused on three things and theyre all interrelated no stimulus, no prospect of stimulus until february after whoever is sworn in is sworn in. Thats a really big problem for the real economy and it stills over into many stocks. Youve got the virus spike, which completely is out of control. White house basically said were not going to control it and theyre planning for a vaccine or herd immunity, whichever happens first. Thats a huge problem for the markets. As i mentioned, the onset of the acceleration for winter caught everyone by surprise t happened earlier than people thought it would have its like wildfire at this point. So thats a huge issue and then, of course, you know, you are going to have this election that we know is contested. The only thing we dont know is how long that process goes on for and how ugly it gets but nobody expects a result. And those things are all kind of interwoven now youre saying, oh, but i have a stock that beat earnings by two cents a share are you kidding me that is not going to help you at this moment in time. It might be meaningful longer term but not today. 940 points lower here on the dow. We are making new session lows there is selling here into the close. Were just over two minutes left to go in the trading day mike, what are you seeing in the market internals as we go lower here pretty ugly, as you might expect, sara pretty lopsided to the downside. 85 downside not quite as lopsided on the nasdaq you can take that two ways at least it means well not have two Straight Days this week where you have 90 down. Its not as if its a big inflection new lows on the nasdaq 13221 its pretty extreme. Its getting there more than 100 new lows shows you some damage is being done. Volatility index took a pop today where we went above 40 that was last seen back in june. If that pulls back three or four points in the next day or so, that will be a decent sign maybe the fever is passing for now, it shows you people are seized up ahead of the election. One minute left in the session. Near session lows down over 900 points the dow down 940 a moment ago. S p down 3. 4 nasdaq 3. 6 pretty much everything is lower. All sectors on the s p are down. Real estate, materials and financials are the best performers, but all down between 2. 5 and 3 themselves. Worst performers certainly are tech and Communication Services both down around about 4 or more energies are down there as well, down over 4 Oil Prices Sliding significantly down 5. 7 today. Gold is down 1. 8 and the darola is lowering after we got news earlier in the show. The euro is down 0. 4 today. Pound down 0. 5 n terms of the equity market, down 3. 5 now on the s p. Session lows, dow down 967 points or 3. 5 nasdaq composite is down 3. 8 . Russell itself is down over 3 at the close, sara, session lows, 3. 5 or 966 points on the dow. Worse than that for the s p and nasdaq. Yeah. They were selling almost already into the bell. Ugly close, down for the dow, 940 points welcome back to the closing bell. Sara eisen with wilfred frost and mike santoli take a look at how we finished on wall street we closed down 940 points. Rising coronavirus cases here in the u. S. And in europe, with new lockdowns announced. That was the catalyst. Three days of selling in a row for the s p 500. For the dow was more than four s p closed down 3. 5 every sector in the s p was lower today by at least 2 you got groups like energy, technology, Communication Services, they all fell 4 some pretty steep declines for some of the markets best performers thats why the nasdaq did the worst. It was down 3. 75 . The russell 2000 down 3 now the s p and nasdaq have joined the dow, negative for the month of october we are doing damage ahead of the election weve got a big hour ahead earnings from visa, ford, gilead, pinterest, grubhub, ebay, theyll all be reporting well break the numbers as soon as they cross, tell you anything they have to say about this environment. First, lets talk about this market and what to do next ceo of ritzholt Wealth Management, josh brown first to you, mike what triggered it and how much damage was done . I think you had layers of pre pressure on the market it wasnt just one thing that triggered it overarching, the covid surge in europe and the global selloff that preceded our open set the tone and got everyone to anticipate were going to see this roll across the country you want to talk about being cinematic, flash over to the tech ceos getting grilled and all the rest of it did seem as if were having to rethink the pace of the recovery and whether, in fact, you have a corporate earnings backdrop to justify where the stocks went. The market had goent a little overexcited going into the october highs and now youve tried to flush out a lot of that confidence of a postelection rally. Maybe that is the band and the slingshot being pulled back far enough i dont think it happened at the september lows all we did was get back to neutral at that point after that 10 decline. Here we are, a couple of Percentage Points above those lows. Weve had days like today before that make it feel like youre right people have always bought the dips what do you think happens this time i did get constructive, you know, around 2500 where i thought that valuation was a little more reasonable look, few of us can predict the trajectory of the opening, few of us can predict the timing of a vaccine. Few of us can predict what earnings are going to look like. I agree with josh. Earnings are not the driver here 16 showed us few of us are very good at predicting election outcomes, although it does seem like this is going to be one of the funkiest elections weve seen in our lifetimes. What we can assess is when risk or reward since favorable to an ownership of an asset class. Relative to equities in my view, given all those uncenters and given the lack of visibility on all of those things, the way the equity market was trading was not reasonable in my view. For that reason thats why i havent been very constructive around these levels where weve been treading water for some time. Josh, if the fear is rising cases, rising hospitalizations, raising death numbers and what thats going to do for the economy, lockdowns or not, were starting to see the superlasupee coming out now dow worse week since march what are the similarities and differences now that we have that hindsight, that can help investors Going Forward with this time . Its a great question, sara if you think about what professional traders are looking at, for some sign theres been enough selling, theyre not going to get it from sooib scientific experts and epidemiologists. This is not about dollar for dollar for every new 100,000 cases the dow has to go down its not going to be like that its more like were looking for an absolute vertical move in the vix, back over 40, the First Time Since june. Were looking at the percentage of stocks in the indices that are below a big moving advantage. 460 s p names are back below their 50day thats not anywhere near a wash dwrout we want to see it at 30 or less to say too much damage has been done too bearish. Its important to point out when the market bottomed at the end of mrch, the virus wasnt even close to have been peaking out i want people to understand its possible two things can happen once whoa personal to get new cases, new hospitalizations and bad news on the virus front but the market starts rising on the idea that were getting too bearish and starting to act as if its never going to end it is going to end dont look to that issue and judge of when to buy or when the bottom of the dip is here. Its a too hard to do. Look for the washout metrics. Santoli is on here talking about them much smarter place to look last thing i want to point out, we were just in this moment last week, like literally friday, where the transports were ripping. Cyclicals were ripping value was outperforming growth it was so exciting everything was changing. Throw that whole thing in the garbage. We have to reset, start over so sad casino names today, airlines, et cetera, giving up everything absolute thats just the world we live in right now. Youll hear this new drum beat a month from now oh, look, the values are starting to out perform. The cyclicals are working again. Until theres a vaccine you can throw that out its not going to be sustained sorry. I wish it were different but thats whats going on. That being said, what if we do get a pretty clear election result anyways week time and the markets think that there is a stimulus coming soon could that give the market a boost even if a vaccine is months away . It could. Were coiling up here for Something Like that. I dont think the process is necessarily done i dont think that anything that occurred this week pushed off the date of a positive news on the vaccine. Whatever we were going to get a week ago, its probably still on the same timetable what youve done is probably goen to a position where you have greater room for upside risk, refocusing of attention and come in tomorrow and say were going to have the greatest four companies in america reporting earnings tonight what changed from last week when josh was extolling the virtues of housing stocks and copper that was on the rise its more about the mood shifting relative to the probability. Yes, i absolutely think that you have the makings of Something Like that, some kind of a come back from some level i dont know that you necessarily have to say wilf must come under a certain path the market will try to sniff out the probables before that. Peter, were about 9 off the highs for the spa 500 and really for the nasdaq are there opportunities at this point or do you want to see more selling before you step into certain parts of the market, defensive, key uncertainties or areas of the masht that have worked better . Yeah, hi, sara. It feels a little bit like groundhog day, doesnt it . We talk about the rotation into value and small caps and cyclicals that fail to occur every month or so. One of the reasons is that were not late enough in the credit cycle yet. Tight stocks alongside other measures of liquidity belie sort of the problems that are going on underneath the covers and thats really in the loan market lending standards are tightening in short, i dont see us on the other side of the credit cycle quite yet. Until that happens, you know, value and growth for that matter will both continue to suffer extech. What do i like here . I do think we need more of a correction i think thats very clear to me and has been for some time price is not right yet to put to just jump in with both feet into broader equities, into small caps i do like, right now, certain special situations in Good Companies that may be seeing stress because of the pandemic those liquidity problems are solvency problems. Its time to be selective and, frankly, to look at alternatives outside just broad equity indices, commodities and the like and toward more esoteric types. European equities even though they feel like theyre in the eye of the storm this week. Its interesting. I wouldnt say i like them but european equities have been much more sensitive, lets put it this way, to Economic Conditions theyre down, i believe, double digits for the year versus the s p 500 now, which is up a couple percent, as you pointed out. So i wouldnt say i like them. But on a relative basis, i think they provide an interesting comparison for how sort of overvalued the s p 500 is right now relative to the underlying fundamentals of the pandemic and all the other things weve been discussing. Josh, you mentioned earlier, dividends were down. Very true statement. Do you think yield stock also start to perform or is this the age old question of no, its going to be the growth names long term and value names continue to lag . You know what i do think that yield is going to act like a cushion, but its going to be industry and sector specific it wont be across the board i think there are a lot of walking wounded out there from going into the integrated energy names as an example for the total return all right, i understand oil is weak im getting a dividend im getting a buyback. Youre not getting anything. Energy stocks sector now have a negative total return dating back to 2005 i dont know if most people realize that its unbelievable how much money has been lost. Just buying stocks because theyre paying a dividend and then you end up in the oil patch, its not going to work. But i do think theyre going to come back to the utilities and the staples and maybe even the financials because theyre going to recognize the tenyear just got turned away at 90 basis points we were about to break that 90basis point high in the tenyear since the start of the june high. We got turned away after this resistance and nobody was interested above that level in selling bonds. And now, of course, were going back three days, four days from now, people are going to look around. Theyre going to say, okay, i got out of the market, some tech stocks, whatever now what do i do in many cases, they cant. Large pools of capital all over the world are going to be looking for a home and theyll find dividends as a justification for coming back out of cash and doing something. Nobody gives the money back. They have to do something. Theyre going to do something, i think, with yield, especially given how low bond rates have, once again, become. Weve got to move on to earnings now we are just getting some in. Approximateinterest numbers are out. That stock is popping. Julia boorstin with the numbers. Julia . 20 as pinterest beats expectations across the board. 10 cents more than analysts projected. Pinterest growing its revenue 58 to 443 million in the quarter. That surpasses the 384 million analysts projected usage also surpassing projections by 5 million coming in at 442 million in the quarter. Pinterest added 26 million new monthly active users with International Users driving that growth of 46 increase in International Users. The companys guidance for q4, 64 in Fourth Quarter revenue projected, also far surpassing analyst expectations for q4. The company saying they have particular strength from small and medium businesses as well as overseas International Advertising and Large Consumer products advertisers interesting to see that stock fly higher 20 back over to you. Julia, thanks for that. Some earnings do matter after all, if you absolutely smash it like that. Visa earnings are also out lets get to kate rooney. Slight beat on revenue for visa net revenue at 5. 1 billion, better than expected that was still a drop of 17 year over year adjusted eps, 1. 12 we dont have a comparable number for that just yet cross border volume was down year over year, that higher margin, more profitable area for visa and other card companies. Total volume was up about 4 year over year the company is not giving guidance for 2021 due to the covid uncertainty. Guys, back to you. Thank you very much lets go to ford earnings. They are out as well phil lebeau with those numbers phil a beat by a wide margin ford earning 65 cents a share in the third quarter. Estimate for 19 cents a share. Revenues better than expected at 34. 7 billion. Its the one two punch of Strong Demand especially for trucks and suvs right now. We reported on that extensively. Its not only that those vehicles are in demand its the pricing these vehicles are selling close to record high prices. Put those two together and youve got for the record beating the street by a wide margin, earning 65 cents a share, versus the estimate of 19 cents a share in the third quarter. Back to you. Thanks for that one amgen and gilead both out. Meg tirrell has those for us. Adjusted eps compared with the streets estimate of 3. 81 topping estimate slightly, 6. 42 billion versus 6. 38 billion the street was looking for raising its Earnings Guidance, narrowing its full year revenue guidance, 1. 3 you dont get a steadier company in this in terms of usually beating their earnings gilead, more volatility. They came in at 2. 11 versus analysts estimate of 1. 90 revny was 6. 58 billion ahead of estimates. The company beat in terms of its hiv franchise, missed in its hepatitis c drugs, getting hit hard by the pandemic remdesivir brought in 800 million for the quarter for gilead the company did lower its revenue and Earnings Guidance for the year so were going to be waiting to hear more about that commentary on the call. Guys so much for that. And now ebay also out. Deirdre bosa. Revenue coming in at 2. 61 billion versus 2. 5 expected. In terms of adjusted eps coming in higher 85 Cents Per Share versus 77 cents. Expected also taking a look at things like gross merchandise volume or gmv at 25 billion, up 22 year over year thats better than the 24. 5 billion expected raising its Fourth Quarter and full year guidance q4 eps guidance, as you can see, shares are down 2. 3 they were pairing losses but now i believe this is that the low is for the after hours it may have to do with the active buyers number that came in a little bit short. Wall street was expecting 186 million. That coming in at 183 million active buyers. Wilf and sara, ebay, yes, has been a beneficiary of the pandemic and the ecommerce trend. How far, it has far underperformed some of the other names like amazon, wayfair and et cetera et cetera etsy they did beat expectations but not a blowout quarter. Back to you. Mike, lots to pick from there. Pinterest particularly impressive, to be up 20 after hours is very impressive, indeed. Exactly also facebook after hours, up about 5 bucks, not quite 2 after that just as we saw with snap, it seems as if this idea that the pot for Digital Advertising has been growing big enough for everybody to feed. That seems pretty significant here on the whole, not that many themes except visa taking back part of todays losses, which came after the mastercard miss this morning. Josh and peter, well leave the panel there. Thank you so much for joining us great discussion. Thank you. Up next, a sea of red on wall street with tech tumbling. Well discuss if this drop is a buying opportunity with tech veor bradley tusk and jim cramer will join us. Back in 90 seconds stayathome stock winner etsy is out. Its a big beat. Earnings per share, 70 cents the expectation was around 57 to 60 cents, big beat on the bottom line sale sides of things, also a beat 451 million better than analysts expected at 412 million. Holiday quarter, growth up gross merchandise sales. Thats how they measure their sales volumes. 65 to 85 growth there they also, it looks like, give their guide aps on earnings above the expectation, 117 to 131 on adjusted ebida. And forecast comes in better at 459 to 513 million, better than the expectation of 440 we know etsy has been a big winner, wilfred and continue to post a lot of growth in sales from recurring users, from new users and from onetime users that they were able to bring back to the platform as people spend more time shopping online. Its not just masks. The percentage of masks as overall performance actually went down. Its because other categories like home were performing so strongly that they took up a bigger share of what people are buying on etsy. Beating their stocks fractionally lower after hours after a bit of a decline earlier tod today. Nasdaq, facebook, alphabet, microsoft among some of the biggest losers as can you can see there. Broader index down 3. 7 . Lets bring in bradley tusk, founder and ceo of Tusk Ventures glood to see you as always this weeks selloff overall, is it understandable given the run that tech stocks have had . Its understandable for two reasons. One, theres been a tremendous run. Second, theres so much anxiety on two different fronts. One is while we think there will be a vaccine some time soon, nobody really knows. And theres no clear information on that. The second, we have an election in less than a week now that everyone is highly aware of, most people seem anxious about one way or another when theres that many anxietyproducing events, pandemic without a solution, with cases rising considerably all the time, and an election that will be extremely bitterly contested no matter what the outcome is, people are anxious about that and that gets reflected in market volatility. I dont think thats all that surprising at least when one of those two underlying problems solve themselves, people will calm down a little bit. Youve warned before, and youve also worked as a democrat for senator schumer and others about the democrats in the blue sweep impacting technology do you think theres something really for investors to be afraid of there . Terms of actual regulation and consequences for big tech, yechs. If you have a senate where the house and senate is democrats, regulations theyve long called for Like National privacy restrictions, tien trust regulations, like repealing section 230, communication decency act all could move forward. Make its way through the entire process. That may not be bad for Tech Startups who at the moment have a hard time competing with the tech giants. For the Technology Sector as a whole, it may long term prove to be a good thing. But if you are an investor in any of the major Tech Companies, i think youve got to worry about that on top of that, if youre an investor in economy sharing companies, its likely some legislation will move forward, which means uber and lyft problems theyre confronting in california will become a problem for others. Some people suggest breaking them up is positive for their valuations, or talk of regulation before and theyve rallied soon afterwards. Would it be a big hit or not really depends on what they do, right . For example, just talk of regulations, probably not that big of a deal. And, as you said, maybe instagram, whatsapp and facebook actually has greater total value, that that wouldnt be crazy at all at the same time there are certain things section 230 of the communication decency act protects platforms for being sued for what their users say. If that goes away, the types of restrictions theyll have to put on content will make those platforms a lot less interesting, which will drive down user engagement, which then drives down revenue. Perhaps some of the fear that tri trickled into the market today bradley, thank you for joining us. Thanks for having me. Bradley tusk, tech investor. For todays big selloff, lets bring in jim cramer, joining us from mad money studio boy, was that an ugly close. Pretty hideous. What are your thoughts about what happened today and what to do next . First, thank you, wilf and sara, for having me on sometimes i think the market socalled wants to go down, meaning that we were talking with my executive producer and joking, come on. Are you just going to nail it down 1,000 for the dow it was almost as if was willed to go down and thats really important. Im not saying its artificial i am saying good news will create an upswing. Ford after the bell reported really dwogood numbers, solid. Its a real number its actual. That reminds me very much of ge. When you get a oneoff like ford and ge and get a couple more one offs, next thing you know youre saying why am i selling everything because of covid covid is going to be 100,000 next week. You know, look, we know you have to build in the covid caseload we have to build in the restaurant shutdowns we have to build in who the heck knows about the election it gets built in im not immune to covid. I dont want anyone to have it or catch t but how many times are you going to discount covid . One stands in my mind with Mohamed Elerian, the fact that you do permanent damage to the economy and therefore the markets if we dont get stimulus until january or february. Do you agree with that or could this all be cleared up within a week if we get clear election result and belief stimulus is coming one way or another . Im not a buyer of the permanent damage thesis i do think there will be lets put it this way. A lot of people will have a hard time putting food on the table but this is not a secular, systemic decline this is not some sort of just incredible 2007, 2009 rule of center moment. There say moment where theres a gap of a series of events we dont like, and we have something, an illness that we may have to take a vaccine every single quarter for, for i dont know how many years. But well take it. And well take it because we dont want to get sick it seems a lot of people in the country who almost curry sickness thats my philosophy transients what are we doing with governors rung the country montana, were going to take the philippines in world war ii and want iowa to go after okinawa. What kind of craziness is this florida is allowed to have anything they want theyre one of the 50, last time i looked i could be wrong i lived in tallahassee thats what made me think it was. We have craziness. We accept the craziness. I think its coming home to roost. When individual Companies Support really good numbers, and they are clean numbers like pinterest tonight, or like ford, they do go up. You cant have all the Companies Report at once, but tomorrow night they will. What are you guys going to do tomorrow at 4 00 are you ready for 4 00, sara bring it on. Bring it on i like wilfs philosophy churchillian philosophy. Night earnings, nothing better. Yeah, i know. Tomorrow is going to be were pregaming today. Weve got enough of them today. Im not trying to minimize the decline or the chaos and the inability to find a sector that works, whether it be Drug Companies or beverages or whether it be the industrials. Theres no place to hide the Oil Companies are so not to be owned ae aerospace, boeing has a fantastic number, come on tv, theyre great. I recognize the carnage but i do think its reversible. Its just you need to get past the election and start accepting the fact that because people dont wear masks, dont practice social distancing, we dont do Contact Tracing and certainly are not like singapore, that were going to have a lot of caseloads. You have other people who say eventually what will happen is well say we have bad caseloads, bad caseloads. Im tired of selling solar so it happens. We have to get to something we all know is terrible. Jim cramer so glad to get your perspective. Thats it thats it . I wanted wilf to give me a king speech or something about when france collapsed. I well, theyve been putting in more lockdown i know thats not youre referring to. No, im talking about splendid in the vial im on page 290. It makes me fall asleep every night no matter what the market does. Most wellread man in the world. When do you have time love you guy. Love you, too looking forward to your show ceos bed bath and beyond, company in a turnaround mode sofi and u. P. S. , the new ceo for her first interview. Thats all 6 00 p. M. On mad money. Meantime, back to the markets here on closing bell with mike santoli, looking at measures of economic reopenings as covid cases continue to rise, mike, are we seeing it in the data here is the interesting thing, sara. As we refocus on whether, in fact, we might have to retrench a little bit in terms of restrictions, the status hasnt changed much this a Goldman Sachs indicator of reopening versus lockdown its been roughly flat since september. Maybe this is a bright side thing. Its not as if everybody went to the point of getting back to Something Like normal and now we have to completely backslide from there maybe it doesnt have to change that much. Maybe its a few things around the edges. Point being we didnt get that far in this process that has to be unwound at this point market behavior related to those companies and stocks that are most tied to a reopening, Research Index of those types of stocks what you see is the index is certainly well off its lows. This is going into today its not as if it really had recouped most of the value i say this again youre looking in the markets and say how much room is there for disappointment, for retreat from what we thought was going to be a return to normal or snapback maybe theres not this much room because these things were back on their heels and the reopening process was partial heading into the reopening. Guys thanks for that up next, wild day on wall street, dow closing down more th 9an40 points. Well look at whether this is a buying opportunity or a sign of more to come even if their shares cost more. At 5 a slice, you could own Ten Companies for 50 instead of paying thousands. All Commission Free online. 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Russ koseterich, bob dahl, senior Portfolio Manager welcome to both of you russ, the selling today, how much was it exacerbated by the fact that were under a week till the election, or is it just covid cases . How do you read the reaction and how does it stand out . I think it was all of the above, sara. There wasnt a lot of places to hide this was really across the board. Its not hard to find the culprits you had this very disturbing rise in covid, not just in the u. S. , maybe more so in europe. Theres still lippingering disappointment from last week that there will be no stimulus before the election, and then, obviously, you know, youve got bangt the election and you can debate the polls i think people are a bit more nervous than they were over the possibility of the contested election and not knowing the results. When you combine those with a market that was extended, its not hard to see why the market sold off as violently as it did. I guess, russ, i asked the covid question because this should not come as a surprise. If you listen to any doctor weve interviewed, dr. Gotlieb, dr. Fauci when he speaks, the warning is in the fall, when the Winter Weather comes and people start to let their guard down a little bit as weve been reopened, that cases would surge. No one expected to have a vaccine this soon in the game. Howis the market so offsides o this the covid can as have surged and it happened fairly quickly its the other things that are happen in the same context anxiety about the election is no surprise, given this very uncertain election with potentially huge implications to the market that people are risking. And one of the things i found the most interesting today, which probably no one is going to talk about is that not only did stocks get crushed but there werent that many hedges, traditional hedges that actually worked global is down bonds were flat. This was just an environment where i think people were going to cash ahead of a very uncertain event. How quickly could sentiment turn around if we get a clear election result . Thats obviously something that would be good news. Part of the markets fear a contested election it just takes time the uncertainty markets dont like what i would add to the list is this fade i mean, it was big today, but it really started the markets started misbehaving, if you will, as the fade on the stimulus package occurred. Another thing that bothers me, companies are coming out with much less worse earnings than expected the stocks initially go up and then they fade too many stocks falling on good Earnings Results the market is just tired and needs a rest. So what do you do, bob . How should investors be protecting themselves from some of these shortterm rests sbun certainties . Expect the churn to continue. Tomorrow we may have a big upday. I think were going nowhere. Ive used 3250 from my year end target 3588 was my big surprise were declined here is not a big surprise i expect a churn there are places you could still be i like some of the consumer areas that are gaining market share. Best buys, lowes, targets, those sorts of things. Hmos were hit hard today in front of the election. Im happy to leg into some of those as well. Russ, to your point, were you suggesting that things like gold are not attractive at these levels, even though theyve pulled back and theres uncertainty ahead . I think its an interesting question i can make an argument for gold in a longterm portfolio investors really have to internalize, part of the reason youve owned some of these asset classes, whether its gold or treasuries, you owned them as a hedge. And treasuries, its obvious theyre not working as well. Athis level, theres not much further yields can fall. Gold is more subtle. Whats clear the last few months, not just this week, is gold is trading with the stocks. Actually, its really trading with gross stocks if you look at the correlations so in a world where negative for a long period of time, i could see having some gold in a portfolio. I wouldnt run out and buy more tomorrow i certainly wouldnt look to buy it with the intent of owning it as a hedge right now. Russ and bob, thank you both very much for joining us great to see you both. Time now for a cnbc news update with sue herera. Hello, wilf hello, everybody hurricane zeta has strengthened to a category 2 storm with winds 110 miles an hour. It is expected to make landfall later this afternoon in louisiana. Philadelphia will impose a curfew tonight to help prevent a repeat of violence in recent nights amid protests of the Fatal Shooting of walter wallace. The curfew will be in effect from 9 00 p. M. To 6 00 a. M next years Boston Marathon has been postponed it was scheduled for april but will be delayed until at least next fall. Toyota recalling 1. 5 million vehicles for a fuel pump problem that could cause cars to stall all together 3. 3 million toyota and lexus vehicles have been recalled for this issue. Vocation wagsen recalling 2018 jettas to fix possible fuel leaks that have caused fires back to you guys sara sue, thank you. Up next, shares of calloway plummeting today after the Company Announced a big merger with top golf. Well discuss with the ceo of calloway after this break. More on the selloff today and what to expect from tomorrows trade heavy day of eniarngs, plus gdp. Well be right back. Im searching for info on options trading, and look, it feels like im just wasting time. Thats why Td Ameritrade designed a firstofitskind, personalized education center. Oh. Their awardwinning content is tailored to fit your investing goals and interests. And it learns with you, so as you become smarter, so do its recommendations. So its like my streaming service. Well except now youre binge learning. See how you can become a smarter investor with a personalized education from Td Ameritrade. Visit tdameritrade. Com learn virus concerns sentstocks sharply lower today, the dow closed 900 points lost, nasdaq composite heavy on tech lost 3. 75 . Third day in a row of declines for the dow, the longest losing streak since february. S p was down for the third day in a row negative now for the month of october with declines. Shares of calloway golf took a dive today after the Company Announced a merger with top golf, valuing the golf Entertainment Company around 2 billion. Calloway ceo is joining us what sort of concerns have you heard from investors, around the price, the strategy or what . Well, thank you for having me on, first of all and were tremendously excited about this new opportunity but clear that we did have a tough day in the markets and timing of the announcement clearly wasnt our friend with the trends that have been realizing across the markets the last few months. And theres a lot to digest here this is a transformative merger. It creates an energy that doesnt replicate anything that currently exists with the leader in golf equipment merging with the leader in golf entertainment and a whole new entity that is a lot for investors to digest. What i can tell you is were really encouraged with our conversations with investors because they understand the longterm potential here they do understand how these businesses fit so well together and, you know, were convinced that there is great opportunity for the calloway shareholders as we unlock this Going Forward clearly, todays Stock Performance didnt indicate that, and we remain convinced that longterm, it will. Do you welcome the shift this will have, chip, to your overall revenue mix away from equipment towards services is now the right time to be making that particular shift i think so, yeah. I think this is going to more than double our growth prospects, right and, you know, being able to take advantage of that opportunity from a position of strength, like we can right now because, you know, our business is flatout killing it at the moment we Just Announced concurrent with this merger record q3 revenues and earnings. Were in a very Strong Capital position and top golf is a business we know extremely well. We have been investors since 2006 ive been on the board since 2012 we come at this from an insiders perspective. And it is a proven model that has outstanding growth prospects. And, you know, both businesses, as i mentioned, just fit so well together that we will be able to drive further growth, further competitive advantage for both businesses its a very exciting but also a very different idea that investors in the market are clearly digesting. Theres been a shift in our Shareholder Base and as that continues forward, i remain very optimistic that the value will be seen. Chip, we hope youll come back on soon and talk to us more about what your seeing in golf it is one of the sports that you can do socially distanced and outside in this covid era. Thanks for coming on to talk about the deal hope to talk to you again soon. My pleasure thank you for having me. Appreciate it Brian Sullivan is driving through many of the key battleground states, taking you roso of the most important counties his latest stop after the break. You got to move the phone in front of you like. Like its a mirror, dad. You know . Alright, okay. Hows that . Is that how you hold a mirror . [ding] power e trade gives you an awardwinning mobile app with powerful, easytouse tools and interactive charts to give you an edge, 24 7 support when you need it the most plus 0 commissions for online u. S. Listed stocks. Dont get mad. Get e trade and start trading today. Welcome back the nascdaq was down 3. 7 there are the biggest decliners on the dow indicative of how broad it was with those five names down 4. 6 to 5 . Brian sullivan is live for us in kenosha, wisconsin, a state that has been recently ravaged by covid19 seeing deaths, and hospitalizations what are you learning . Learning things are different than a few months ago. This is my fourth visit in the last few months. And not in good ways it has the highest positive rate in the United States you see people around all masked up like you are supposed to do you can see the cases. Thats county level data from the Wisconsin Department of Health Numbers surged when it started getting cold about a month ago cases have been on the rise. It has been a difficult time for kenosha. This is an important town and county donald trump flipped the county in 2018. Trump won kenosha by 255 votes, thats it. So all of the attention is on this area. As you can see the map of the state and some of the key counties highlighted i dont know if there will be anybody left to vote on election day. They have been busy all day long there is a line of cars that goes out in the street i talked to the Election Officials earlier and they said they have been voting like this all day. We live, lets be honest, transparent, we live in an area in the northeast where you wont see a lot of battles of signs. I will leave it at that. I want to show you something driving down here nearby about five miles up the road there are signs everywhere, but i came across the ultimate two houses i took a picture because i thought it was endemic of what was going on two homes side by side 50 biden signs on one side and 50 trump signs on the other. I was thinking do you think they get together for packers games and barbecues . Thats the kind of passion we have the roadmap, we are calling an audible. Friday we are going to be somewhere else i wont say where it is except it is in the town where my wife graduated from high school and speaking of my wife, today is my 20th wedding anniversary i am not home so just want to say i love you we are in kenosha and will be somewhere else friday. The town has dealt with a lot politically. Kenosha is strong and i think it will get rougher for them in the next couple weeks. The rise in cases, whether that influences the way people vote brian, happy anniversary sorry you couldnt spend it at home, but that was sweet i am a sweet guy. I have no idea where your wife went to college or high school its in your home state, sara okay. Akron, columbus . Thank you. Up next, after a wild day for stocks, a busy day for earnings is on deck. It will be nuts here tomorrow on closing bell we will get you ready next our Retirement Plan with voya gives us confidence. So we can spend a bit today, knowing were prepared for tomorrow. Wow, do you think you overdid it maybe . Overdid what . Well planned, well invested, well protected. Voya. Be confident to and through retirement. Here is a check on some of the big after Hours Earnings p pintrest is soaring ford is also up. Ebay is down almost 4 even though the numbers were better than expected. Tomorrow is the big day. Apple will be at 4 30 p. M. Thats all happening during this show tomorrow. I am not sure that we have ever had all of them like that in one day. It will be crazy, mike it comes on a day when the dow lost 900 points. We will have a blowout gdt but we are coming off lockdown where do we go from here coming off the awful gdp numbers we got earlier this year today we had the dow down 3. 4 something percent. N n nasdaq down, s p down. Thats okay. The market wasnt sniffing out something new. It seems like a quasiretest of the september lows we will see if pintrest earnings bode well, that might be good for the s p tomorrow we will have to see tomorrow we have already flushed out a lot of the signings. That does it for us. Im melissa lee and this is fast money. Tonight, a brutal selloff rocking wall street with the dow dropping 3. 5 . Taking every style of stock, even goal finishing in the red on pace for the worst finish sinc