President rob kapito. Which is a better bet, stocks or fixed income . Bonds and stocks, we have two people who will make the case for fixed income. Well have a top pick. 5 trillion, folks, thats a trillion dollars every 12 minutes. 100 million about every minute. Dont miss even a second of this show tonight. Sue, down to you. Sue is not there. Ill pick it up here. Big market selloff following yesterdays huge rally but one of the bright spots today as hand apple. It is up on the icahn letter, carl icahn explained his move just minutes ago to our scott wapner, right here on our network. Listen in. Every time they sell a phone, scott, they have another annuity. They have another flow that they guarantee. People dont get rid of these phones. I think this is not realized and as a result we are writing this letter. Lets hear from an apple shareholder, michael farr from washington. Welcome. Youre actually here with us today. What do you think of apple . What do you think of icahns exhortations to buy back more stock. I think apple is fairly priced high. Id have another 35 stocks that id like to suggest are undervalued as well, because i own them all. I think you have to keep in mind that mr. Icahn own s stocks of icon and will benefit if the stock goes higher. Longer term is a growth story. Its sale and gadget dependent that you do have to be a bit cautious. Lets talk about the Broader Market and why you think the market is behaving the way it is behaving today, over the past ten days. What does it signal to you, these big moves . Across my career, we have noticed a couple things. From time to time, markets go down. Stocks can go down. Okay . Its not the end of the world. Its not a reason to panic. But this market has gone up remarkably over the last five years, six years. I mean, its been terrific. From 2009, i guess, in february, to now, its been a remarkable run. We havent had a significant pullback. This feels toppy to me. You cant judge the effects of what the fed and all of this quantitative easing are going to do. This week is a great example, right . You saw the fed release yesterday, market was up a couple hundred points, were down a couple hundred points. It feels toppy. To quote a friend of mine, were feeling dire exhaustion. Let me ask you to flush out your thought and fast forward the movie a little bit. Is toppy code for correction or is toppy code for meaning that the bull market, the fundamental pillars of the bull market are over and that we may be in for Something Different . I dont feel like the fundamental pillars of the bull market is because the economy is constructive and xparnding. Economy has to shift from a fed Monetary Policy and deficitdriven spending kind of an economy thats really driven a lot of the growth to a consumer, consumption, demand driven growth. Thats going to be a rocky transiti transition. But i think were still okay on the economy. Were due for a correction, you know . Were due to let air out. As Warren Buffett tells us, you get to see him swimming naked when the tide goes out. Sue, weve apparently been able to establish connection with sue and her guest down there. Go ahead, sue. Joining me right now is george young. Hes the comanager of the villory balanced fund. Were down 284 points. As a money manager what do you do on a day like today. You buy. What do you buy . A couple things to remember, one, its important to withhold at the top. Its hard to do that all the time, though. It is, it is, sipsychologicay hard to do. Where would you put it . Lkq, like, kind and quality. When you get in a car wreck, you may think when your car is repaired youre getting brand new parts. What youre getting is refurb h refurbished parts. What about apple, you know, mr. Icahn was on our air. A lot of people think hes talking up the stock because he does have a position in apple. What do you think of apple . Love apple. We own apple. Its interesting. This is nothing new. Apple has been buying back stock for some time. Its nothing new. I think hes overly optimistic. He thinks it can double from here maybe not . 0 every a long period of time anything can double. I dont think its quite as optimistic. Great stock, great products. What about the Global Growth scenario . We had a bad data out of germany which started this market selloff. Can the u. S. Market continue to march forward if the entire Global Growth scenario is basically being wree written . Right. We dont buy foreign stock. We know domestic stock, remember, he has a level Playing Field and a strong economy. If its a level Playing Field, you have s. E. C. , maybe theyre not perfect but they are good at leveling the Playing Field. You have great opportunities here. Germany, france, italy, all those problems over there, thats for them to deal with. Thank you so much. Appreciate it very much, george. All right. Breaking news in the bond market, the 30year bond up for auction. Rick santelli is tracking reaction. The last 29 years, 10 months, making a premiere in august. Whats the deal here . Those 13 billion had a yield of 3. 074. Almost identical to the side of the issue market. Priced about right. 2. 40 of investor dollars chasing every dollars worth of available security, its smack on. 46. 2 on indirect. The one light spot, 21. 5 on direct, takes out the ten option average of 16 but the recent trends have been higher versus lower. C plus on the last of the auction as we are just about ready to cut 301 on the dow right now, breaking news. So, sue, ill toss it back to you with that dismal number. Its not a pretty day down here. It still feels orderly but the fixed income markets. Dominic chu. Lets take a look at the worst performing sector in the s p 500. That is energy as Oil Prices Continue to fall, early today we saw brent crude fall below 90 for the first time in a couple years ago. Exploration and production companies, anadarko, danberry, chesapeake, neighbors industries, a broad group of oil and gas are lower on the day. Oil Services Companies lower as well. Back over to you. And it is what a day were looking at here. The dow industrials down 300 points again. It was earlier at that more than 300point down dive early today. Once again here as we watch really the return of a kind of volatility that we have not seen in, dare i say a couple years here over the past couple of weeks. One of the many legs impacting the markets are comments by the ecb, the central bank in europe. The president there, mario draghi who vowed to enact more monetary stimulus as needed. Steve lease miesman has details washington. Thanks very much, tyler. Mario draghi, speaking here in washington, the brookings institution. He had plans to increase the size of the Balance Sheet as needed over a period of time. He wants to go back to the 2012 level which is almost 1. 1 trillion euros higher than it currently is. The question is whether or not its enough. Heres what he said about the new era at the European Central bank and its policy. We are transitioning from a Monetary Policy framework, predominantly founded on passive provision of Central Bank Credit to a more active and controlled management of our Balance Sheet. We expect measures to have a sizable impact on our Balance Sheet. Reporter so what the ecb had done previously, guys, it would do its policies without considering the effect of the Balance Sheet. That created a huge decline in the Balance Sheet and perhaps european economies went along with it to the downside. Now theyll targeting a Balance Sheet. Hes not giving it a time period. We talked to stan fisher. I got to ask him a question about the impact of the dollar on u. S. Monetary policy. There will be a separate factor, well be judging whats happening to inflation and acting on that basis. So stan fisher not really adding to the comments made yesterday. He cited the minutes and said you know what, thats what we have to say about it. Remember yesterday those minutes which sparked a rally, showing the feds concern with overseas swell the depreciation. Carl icahn we began the broadcast with him, urging apples tim cook to increase its Share Repurchase program for stockholders. He did so in an open letter today that he hinted about yesterday. He then stopped by fast money Halftime Report to talk to scott wapner about it. Give us the highlights of whats in the letter and what he said to you. I asked him about the market. Remains concerned about where we are. Thinks a correction is a matter of when, not if. Of course the point of our conversation was to talk about this document right here, that is the letter, the latest one, that carl icahn, his son brett icahn and his own business partner, shadavid scheckter hav sent to apple, asking for a massive buy back, a tender offer and arguing that the stock is dramatically argued undervalued. In terms of the size of the buy back, remember a year ago they asked for 150 billion. Today i asked carl, how big do you want this time . Heres what he said. Id love to go all in but obviously theyll never do that. Thats my nature on this one. But i would like to see them do a massive tender offer. I think if they did that, it would be very helpful to shareholders that stick with it. You know, as weve said, we would never tender into it. Sure. If they did a dutch tender or a massive tender, i can say as much as 100 billion, i think this would really change the whole paradigm. I think you gathered from our conversation and even the tone of the letter, that the conversation that carl and tim cook are having now versus a year ago is not quite as contentious. Carl went out of his way, he does in the letter, that cook is a guy he believes in. There was a real detente there. Didnt apple, did they split the stock, raise the dividend on it . They bought back more shares than anybody ever. They have a big buy back program in place. They say, look, its dramatically undervalued. If you do this massive tender, it could make the stock where it should be trading. They say 200 a share. They say its underowned, one of the reasons they believe its undervalued. Apple came out with a statement, by the way, within minutes from the release of this letter, yes, we appreciate input from our air shoulders. Wouldnt you like to be at the next table when they have dinner . Yes. Thanks very much. Sue, down to you as we look at the dow diving there 307. It was down 327, ty, just a few moments ago. We did make a new low on the day. Art kassin saying we took out that 1950 mark and the 1940 mark on the s p 500 which triggered technical selling. We are at or near our lows of the day on the Dow Jones Industrial average, the s p as well. And basically, the markets momentum to the downside is picking up. Volume is picking up down here, too. Where is the money going . Its going into the tenyear note. The year was 2. 30 and the transportation average confirming the downside move in the Dow Jones Industrial average, transports are down better than 2 on this trading session and the russell is getting really hit very hard, too. So were keeping an eye on it. Coming up on power lunch, were going to talk more about whether activist investors are a distraction. One management expert will tell us what he thinks of carl icahns letter to apple, plus thoughts from cnbcs jim cramer. You know. Theres a more enjoyable way to get your fiber. Try phillips fiber good gummies. Theyre delicious and an excellent source of fiber to help support regularity. Mmmm. These are good the tasty side of fiber. From phillips tim cook, apple, david pilot, allergen were all bad ceos. The best tech company, drug company are all under fire, the highest growing, best quality. Going after the suma cum laudes in each industry, its interesting. Investors on a seesaw. What will it take to calm them down . Jeff sonnefeld is here. And dom chu joins us from across the way from the studio in englewood. Lets start with carl icahn and what jim cramer just said. What is interesting here, some is of the activists, whether its icon, mr. Peltzen in the case of pepsico, they seem to be going after the suma cum lauds of the equity world. Why is that and is it justified . No, its not justified. I think jim cramer is right on the money as he generally is. In pointing to the irony of going after places like, you know, dow or due upon, strong performers, not to mention looking at the record performance we have coming in from pepsico at alltime highs, both on the frito lay and the snack food side as well as on the beverage side. Strong Revenue Growth and profits. A lot of new products coming out in the midst of all of this. How in the world or tim cook, of course, the topic of the afternoon right now is how could you not be investing in and be enthusiastic about apple, is to suggest a cash flow issue because its a ready target. Carl kicks up a lot of dust. Hes a brilliant investor. He doesnt always get them right. Hes had colossal failures. Blockbust blockbuster, wci, xo, pkf, these companies all went to zero while he was on the board, generally the chairman of these enterprises. They lost all their value. Nobody needs to speak for carl icahn. I wont presume to but i think he would say, hey, look, a year ago we made proposals to apple, they adopted some of them, got more aggressive in buying back stock, they split the stock and look whats happened, the stock has gone up 50 some percent since that time. Hey, look, i was telling ebay years ago to split into two. Look what they do. Theyre doing it. No. It is a little you know, ebay, perhaps you would argue on that. Theyd argue back at donahue and others that they were not ready to split at that time. Maybe it was the right idea but the wrong execution. Timing matters. They had to unravel hr and all kinds of strategic interentanglements between these business lines to make that work. Hes done well with netflix, chesapeake. He was brilliant and great american. But when you take a look at apple, you have, what, 170 billion of their cash trapped abroad. 139 of their accessible cash is overseas. Right. When we have analysts talking about how much overcapitalized perhaps apple is, theres not that much they can liberate right now. His Company Admits has done well. All the school yard antics of the frat boy demeaning comments on others, they he does love andreasen he does love tim cook, that creates news but it wont create wisdom here. Frat boy or school yards in queens i think in his case. Hes looking at the play ground in queens for the bill ackman. Thats right. Different playgrounds he maintained. Im looking, dom, at the dow here. All 30 stocks are negative. Its the kind of day we grew accustomed to in the late part of the last decade. Whats going on in this market . You heard michael farr say the market looks toppy to him, these kind of wild swings up and down. Its interesting. Back in the depths of the financial crisis, i remember waking up to headlines saying futures were down in japan or somewhere else. We havent had to deal with this process in a while, certainly not as much during the zero Interest Rate policy from the fed. There is a sense among many in the markets right now, many professionals, that the one thing we lacked during the market peaks that weve seen since 2009 is a good amount of volatility, especially over the last couple of years. As everybodys been waiting for this pullback thats been something deeper than 3 to 5 , what we have not seen are these types of major swings. So there are some in the market that say, dom, this time around, it may very well be different than it has been for all those little pull backs that weve seen over the last three years. The reason why is because this type of volatility sometimes does signal a change in sentiment. So as we check out whats happening, we are right now just down about 4 to 5 from our alltime highs given todays 1. 5 pull back. If that is the case, this is in line with other pull backs weve seen over the past two to three years. The question becomes whether or not this leads to a greater correction, this is to say a 10 or bigger pull back in the market and if that does happen, does the bull market trend stay intact . Weve seen 10 pull backs in the market before but weve managed to rally higher since march of 2009. Guys. Dominic chu, thank you very much. Jeff sonnenfeld, thanks to you as well. Dom put it in perfect perspective, ty, the major averages are indeed moving lower. We were down 327 points. The dow seeing its Third Straight move, the s p dropping more than 1. 5 , the russell is down better than 2 . Its a messy day, the volume is picking up swell the momentum. Fred algiers, c. Theres more advice coming your way as well with the dow down 253 points. Your goals, our technology. Introducing synchrony financial, bringing new meaning to the word partnership. Banking. Loyalty. Analytics. Synchrony financial. Enagage with us. Today could be the day. The day we give you hope. Relief. A cure. Today, we believe every life deserves worldclass care. As one of the top four hospitals in the nation, over 100,000 people from around the world come to Cleveland Clinic for care each year. And were ready for you with a Second Opinion or a sameday appointment today today today and everyday. Call today, for an appointment today. What a day its turned out to be here. After yesterdays 270 some odd point gain, that one followed the day befores 270 some odd point decline, we have another 270point move, this one negative. We were off about 320 some points just a few moments ago. The losses have retreated just a little bit. But our next guest is not intimidated by what he seize in the market right now. Hes going full speed ahead into u. S. Executives. A power lunch exclusive with dan chung who is with fred alger management. 21 billion under management. Alger as many viewers will know, is almost synonymous with growthoriented investing. Make the case for Growth Stocks now in a market like this one with an economy that is moving nicely but that is not on fire, certainly. Thanks, tyler. Alger is synonymous with growth investing. We just turned 50 years old this year. I case now is as good as it was 50 years ago. We are always looking at innovating companies. These are companies that have the product and services, strategies that can grow. We think even in slow economies, particularly perhaps when economies are slowing. So you know, we have examples of that across our port foal toes and portfolios. You are known as the stock pickers. And the Market Action doesnt really get in the way or hinder you. I do have to get your thoughts about what you see in the Broader Market right now. Then i want to get some of the smart investing ideas you have, some names. Whats your thought on the overall market . Yes. Its important for investors to take a step back and realize every year since the financial crisis weve had one and often several selloffs in the market during the year. Each time the market has come back quite strongly. For example, right now were talking about i think we should see downside here. Were talking about, we think, a 4 or 5 correction from just the recent highs. We had similar action in each of the prior years, particularly in 11, for example, around the european crisis, that started there and last year around the beginning of tapering. Weve seen these market moves before. Theyve been good buying opportunities for u. S. Equities. Lets talk about the sectors that you are focused on right now. Biotech and health care, why which names . Well, in particular health care overall. If you are really concerned about the economy, this is one of the least economically sensitive sectors there is. In particular, its benefitting from the Affordable Care act which rolls out and covers more people in america is really offering opportunity for innovation across the sector. But in the biotech pharma space, were excited about the development of new drugs coming out from gilead, biogen, cellgene, many that have been long in research. Theyve culminated efforts around the human genome. Most of the companies are basically 20 growers, top and bottom line. Right now theyre trading at about 20 times next years earnings. We think thats extremely reasonable for the high quality growth they represent. We have to leave it there. Thank you for joining us, the ceo and cio, dan chung, with fred alger. We are seeing a big move into the metals markets today. The comex gold was up 20 bucks. The Copper Market is up as well, platinum, palladium, up across the board. The money is going into treasuries. Also earlier, the u. S. Dollar, lets talk to Rick Santelli at the cme. Its interesting, im not going to start at the tenyear yield. The 10s and 30s have a lot in common. Lets start at the 30s. We had an average plus auction today. Even though were hovering at the lowest yield close since may of 2013, its a sideways chart, all things considered. Now go up the curve to a fiveyear, that same twoday chart, if youre talking about following the money trail, you want to be looking more at 5s than 10s and 30s. On the dollar index, well, you know, take a look at the hyg first, excuse me, about ready to make a new pass at lows we havent seen since september. The lqe doesnt look like that. Theres a discriminating credit trade going on underneath that shouldnt be going on. The dollar index, yes, it hasnt gotten back everything from yesterday but the phrase on the floor that everybody is using, the thumb on the scale has a half life of mayonnaise in the sun these day. Power lunch executive coming up, rob kapito. Well get his view and the companys take on triple digit losses on wall street, on bonds, the economy and well also get the firms reaction of bill grosss reaction from pimco. More power lunch coming up. Stay with us. Sea captain theres a narratorstorm cominhe storm narrator that whipped through the turbine which poured. Surplus energy into the plant which generously lowered its price and tipped off the house which used all that energy to stay warm through the storm. Chipmunk theres a bad storm comin narrator the internet of everything is changing how energy works. Is your Network Ready . Welcome back to power lunch on this down day for the stock market. Another triple digit move for the dow, this time to the downside as well. The dow has fallen as much as 335 points today. Currently its down 250. A good portion of the losses have been recovered. Big oil, 85 a barrel for west texas intermediate. The Major Oil Companies are lower today, followed by caterpillar, goldman sachs, johnson johnson. Those are the dow stocks leading the decloonines. Its moved 200 points up and down since the start of the month, down 367, up 425, down 436, up 344, down 316. Its been a volatile month and, again, sue, just to keep this in perspective, this day to the downside, again, just one of the six or seven days so far that weve seen this kind of a move. Back over to you. That is the perfect chart to really put everything in perspective, dom, thank you so much. Obviously a big down day on the markets. Where does the worlds biggest asset manager find opportunities amid all this volatility . In a power lunch exclusive, weve joined by rob kapito, president and Founding Member of blackrock with over 4. 5 trillion in assets. Welcome back. Sue, good to have you. Seeing what were seeing in the market today, you were spot on on the markets performance last year, what are you telling clients today . Some may be calling in wondering what to do, should they change their allocations . What are you telling them . Im going to be the optimistic one. Were in a period of low Interest Rates. I know this quantitative easing thats playing place. I know theres a lot of regulatory complexity. Were telling our clients that you cant invest for the future in the future. You have to get invested today. And as i told you in the very beginning of the year, i still think theres opportunities in the bond market. And in fact, our total return fund that i talked about last time with you is up 6 this year. Thats a pretty good return in the bond sector. And i think equities are going to be low Single Digits this year. Im hoping to convince investors to get into the market because even though were in this low Interest Rate cycle and youre seeing volatility in the equity markets, youve got to be in these markets to make a return. And you cant be sitting in cash. Right. And expect to have enough for retirement. Lets talk about the total return fund, especially in light of bill grosss departure from pimco. It does have it did have a market impact. We are seeing money from that total return from their total return fund go elsewhere. Its seeking another home. Has blackrock and the total return fund you run been a beneficiary of that . Well, of course. Weve been seeing flows all year. The reason weve been seeing flows is because of performance and because of the Team Approach and the process we have. I couldnt be more proud of the team that we have. So flows have been coming in, both total return and our total return fund is in the top decile of performance. I told the team ill have to create another category if they keep this up. In our Strategic IncomeOpportunities Fund which gives us more tools. Were in the top quartile. We are seeing more flows. Were telling our clients we are there for them to provide any solution that they need in the fixed income markets. Rob, talk to me about the Global Growth scenario, because germanys data recently has just been terrible. Theres a lot of talk that europe is either back in recession or about to lapse back into recession. How do you think that will impact the u. S. Economy and more specifically the u. S. Market . Well, of course all the markets are related. But ive just traveled around the globe. I can tell you, theres a significant amount of investment thats coming into the United States. And thats because people are more bullish on the dollar. Theyre a bit negative on the yen. And also there are issues of growth in europe. So i still think there are good opportunities here. I think well have a 3 gdp growth. Thats consistent. Its slow but its moving. Were seeing better employment. Were seeing better investments by companies now for the future. The companies in the United States have been the beneficiary of low rates that have done a lot of financing. I think earnings are going to surprise everybody on the upside. So im very bullish in the future for money flowing into the United States. Now, thats on top of the 10 trillion thats sitting in cash. Exactly. That money at some point has got to be invested. I think its going to create a great investment environment in the United States. Well, as we mentioned you were spot on last year. Well see what happens this year. Good to see you, rob. Thanks for spending time with us. Thank you, sue. Good luck. Ty, up to you. Lets talk to our contributors at the cme, jeff killburg, jim iuorio. What do you make of what mr. Kapito just said, a great environment for investing in the United States. Jeff, you first. Its hard to argue. Hes the Michael Jordan of portfolio management, ty. Hes alluded to the feds Balance Sheet, the safety net will remain. I do like him but ill tell you my education and take a run at his Harvard Education for one second. I think well see choppy markets. Long term the u. S. Stock market will grow substantially in 2015. There is tumult thats representing the vics right now. I think this is a fairly decent time to invest in the stock market for long term. I do, however, think were about halfway through whats going to be a bit of a deep correction by the last couple of years standards. What hes saying is a much longer term picture. When weve seen the volatility weve seen in the last couple days, particularly when you add the strong market yesterday, in downward trending markets we tend to see wicked, take no prisoners type of rallies. That did nothing to convince me were not in a downtrend still. Were tight on time today. Appreciate you being with us. Triple digit losses for stocks, are bonds the better bet right now . Two of the top Bond Fund Managers will join us next. There you see the dow industrials, all 30 are lowerso turned in by johnson johnson, chevron, exxon, goldman, disney in the bottom ten. [ radio chatter ] [ male announcer ] andrew. Rita. Sandy. Meet chris jackie joe. Minor damage, or major disaster, when you need us most, were there. State farm. Were a force of nature, too. Were a force of nature, too. This is kathleen. Setting up the perfect wedding day begins with arthritis pain and two pills. Afternoon arrives and feeling good, but her knee pain returns. Thats two more pills. The evenings event brings laughter, joy, and more pain. When jamie says. Whats that like six pills today . Yeah. I can take 2 aleve for all day relief. Really, and. And thats it. This is kathleen. For my arthritis pain, i now choose aleve. Get all day arthritis pain relief with an easyopen cap. Welcome back to power lunch. Im bertha coombs. It is Throwback Thursday for small caps. Already down about 10 almost from their alltime high in july. Take a look at the russell. Today it is almost trading at the same level it was exactly one year ago. The russell had so much underperformed, the small caps 8 year to date compared to the nasdaqs year to date gains of 5 . Biotechs are the biggest point of pain, the biggest decliners. Even the big caps are getting taken down as the mood seems to be more bearish. Semiconductor chips getting hit hard in the decline. A few Stocks Holding out. Its been two or three stocks that have stayed positive. Apple for one with the carl icahn news. Also sigma aldridge today, Green Mountain coffee hitting a new high and costco has been in and out of positive territory today. But it, guys, is at historic highs today on a down day. Back to you. Bertha, thank you very much. On a day of triple digit losses for stocks, are bonds the better bet right now . We have two of the top Bond Fund Managers here to give us their picks. Laird landman and from columbus, ohio, doug swanson who manages jp morgans 25 billion core bond fund. Welcome, gentlemen, to both of you. Laird, let me start by asking you, are bonds a good buy now . And if so, where in the whole panply of bonds . Were caution on the bond market. Even todays action, this move down in rates is largely down in our opinion. Sure it could go another ten basis points but youve got to worry that the welcometerm trend will be the higher rates. Thats what the Federal Reserve is telling us. When you look at other segments in the credit, credit tends to be expensive right now. Were a disciplined value manager, a Team Approach. Weve been basically cycling out of these risky sectors. Doug, do you agree with what laird just said . Weve seen volatility in the tenyear, certainly, its 2. 33 today. A week or so ago it was 2. 6. Its been yoyoing quite a bit. I think we are going to stay in this kind of a trading range for the near term. To get a more significant rally from here, i think youd have to see something bad happen, maybe whats going on in stocks, Something Like that would have to continue. But its been more of a trading range for the last six months. We think thats what will continue. Whats the sweet spot for you right now, doug . On the mortgagebacked side, the fed is buying traditional passthroughs. But theres been a lot of issuance by fannie mae and freddie mac in the multifamily space. Thats whats lagged in the past. Thats more of an eight to tenyear value life. Laird, how about you . I take your point that youre being cautious and you see the bond market as a place for caution right now. There must be things youre out there interest in. The big picture is keep Systemic Risk low. There are pockets of value that still exist. The technicals s are marvelous. Supply and demand, economics works very well there. Were beginning to see a big selling of some of the tips in the 20 and 30year sector. Thats obviously coming out of a wellknown place. That will create cheapness for investment opportunities. I have to ask you the question. Something happened at the end of last month, a guy named gross, the lebron of bonds, he moved. Doug, have you been seeing any knockon effects of that . Are you getting more calls . Are you seeing more inflows . What if anything . We have definitely been seeing inflows. Were continuing to manage the portfolio like we have been. And you know, its also created some value in the secondary market. Where theres been selling and were finding some bonds that have value. To pick up, as they sell, as their redemptions, how about you, larry . As our heritage goes back to pimco, the founders all came from there. I think weve seen a lot of fall activity. We got our sector specialist together as were a team. We made sure to prepare with the flows were seeing. The flows remain profound. Were positioned to take that money in. Were not going to change our style of managing money. Were basically just weve always managed the firm for growth and were prepared for that growth. Laird, thank you very much. Nice to see you. Thank you. Doug swanson, thank you as well, from jp morgan. Thank you. Sue, down to you. Lets check the markets. Ben willis a few minutes ago, i said what is it going to look like into the close . He thinks it will be difficult. The dow 260 down, the nasdaq down 64, russell 2000 down 2 or 20 points. The market coverage continues with the yield on the tenyear yield at 2. 3 . Back in a moment. We help forwardlooking Companies Run better and run different to give your customers every reason to keep looking for you. So if youre ready to see opportunities and see them through, we say lets get to work. Because the future belongs to those who challenge the present. Everyone is looking for ways while to cut expenses. S unique, and thats where pg es Online BusinessEnergy Checkup tool can really help. You can use it to track your Actual Energy use. Find rebates that make equipment upgrades more affordable. Even develop a Customized Energy plan for your company. Think of it as a way to take more control over your operating costs. And yet another Energy Saving opportunity from pg e. Find new ways to save energy and money with pg es Business Energy checkup. Welcome back to power lunch. The markets overall have managed to move off of session lows even though were taking a move lower in the last couple of minutes. Another volatile trading session overall for the s p 500, leading the way lower for the s p to gap after its ceo announced he was leaving. Also, check out energy stocks. Qep resources, danbury resources, newmont mining, first solar, a number of different issues here, all to the downside, leading to the market losses. The s p off by 33 points. More now, dom, on the markets. With this on post nine here is bob pisani, kenny as well as another guest. Both of you said the close has the potential to look ugly. Ben, you first. Buy the dip, sell the rip. Professional traders will be doing this. What investors are doing is an entirely different story to watch. For the close, i think youll see professional traders take a long position. What about you, ken . It will push to the lows on the day and i think youll find not only professional trader types but more Institutional Support down there. Like i said to you the last couple of days, it feels like it wants a 200day moving average test. Thats where its going to go. Bob . Weve had the slowing growth colliding with the debate on when the fed will raise Interest Rates. We have awful german Economic Data combining with generalized concerns about ebola. Theres worries about how effective the containment will be. Lets face it. Thats out there as well. We have draghi complaining, theres no real change unless we get reform in europe. The market drooped at 1140 when that came out. Was yesterday the aberration . Yes. Yes. I said it yesterday to you. I think that the move yesterday was up dramatically on not a whole lot of volume. You could feel there was no real commitment behind it. And so once again, i think that what were seeing today is exactly that, people were kind of sideswiped by what happened yesterday and the trend is lower and the test has to be at the 200 day. Buyers and sellers, i dont think was an aberration. I think what you saw was an effect of the dance going on with the Central Banks throughout the world. It would prove the United States is willing to continue to dance with draghi. Even though today he proved once again that hes the people e emh no close. If you want to go see whats on in the world, you need to look at 9 currency markets. The volatility and the way the dollar the dollars trajectory is an exact inverse relation to whats been going on in the russell 2000. Its all about the dollar and the currencies in the market. Thats why we had the reaction yesterday that our own fed was willing to let our dollar weaken a little bit. Right. To allow the eurozone to catch up. We are dramatically oversold in the energy market. Some are down 20 in a week. Lech to the xop today, its due for some kind of we have direct relationship to the dollar and the effect on the commodity itself. Thank you guys, appreciate it. Dancing with the naked emperor. Im taking that thought with me. That will do it for power lunch. Lets see whats coming up on street signs. Were following the markets very closely. The loss is pronounced in the energy patch. Who better to have on than Boone Pickens . Hell give us his take. Greenberg is joining us with the theory that may be lots of things coming up on the show. Make sure you join us, top of the hour. In the hall of the Mountain King [beeping on the computer] peter come take a look at this. [beeping sounds are more rapid] [beeping sounds are even faster] mr. Daniels . Mr. Daniels . Look at this. Whats this . The numbers they keep getting bigger and bigger. The clicks are off the charts. Yeah the clicks are off the charts. Yoshi, its walt. Were back. Yes sir hi. [spoken in japanese] lets go lets go lets go [spoken in japanese english] i need more trucking. More shipping more shipping i need more trees more trees . Ill get you more trees. Hey take a look at wood pulp. Whoa. Everything you got on wood pulp. Right now yeah he really loves that thing. E financial noise financial noise financial noise financial noise ameriprise asked people a simple question in retirement, will you outlive your money . Uhhh. No, that cant happen. Thats the thing, you dont know how long it has to last. Everyone has retirement questions. So ameriprise created the exclusive. Confident retirement approach. Now you and your ameripise advisor can get the real answers you need. Well, knowing gives you confidence. Start building your confident retirement today. Here yesterday, gone today. Stocks and oil are both tanking, beyond yields staying incredibly low. This is an incredible reversal from yesterday. It is. Lets take a closer look at what is going on, stocks have retraced some of their losses. We are off the lows of the day. Were down sharply around twomonth lows. When was the last time we saw this level of volatility . This is the Third Straight 200 pluspoint move on the dow. That has not happened in over three years. With Global Growth fees at the fore, bonds are rallying, gold reaching a twoweek high. The S P Energy Index behind me down 3 , down 14 from the record high in june. Well and truly correction