After three days of losses, a strong day for stocks after fresh data this morning. Well find out where we go from here. Apple suddenly vulnerable. Bending iphones, Software Update gone awry. Will the stock continue its slide . Another day, another ipo, another one with blackstone. Well have the first trade for travelport after the company priced at the high end of expected range last night. As we bid adieu too jeter, we say hello to Steve Ballmer on microsofts new ceo and clippers. Durable goods fell last month, biggest drop on record and reversing an aircraftdriven surge in july. Strip out transportation, august orders rose 0. 7. Jobless claims rose less than expected last week. Data coming one day after the stock rally that ended three days of losses. We are getting a little chop as cramer might say in what is historically not a great week for the markets. When you think about some of the leading indicators, russell 2000, high yield etfs, all those are seeing outflows. Those have been broader trend setters for the overall market. When you think about taking money out of some of those indexes, thats about taking risk off the table. Whether you believe the fed is going to become more dovish because of a stronger dollar as Charles Evans said yesterday. Thats to be determined. When people look at those two indexes, ill be interested in art cashins take on what he thinks is behind this. Its all about the fed. If you look at the strong gains last week, its about the fed being more dovish. 1. 7 gain in the dow. Yesterday you have evens saying theyll be exceptionally patient on hiking rates. Very interesting for joe lavorgna at deutsche bank. It will be a less dovish fed when you come to the close calls when you are going to raise rates. He is suggesting this may be why treasuries are well bid. People understand that the rate rises from the fed are potentially getting pushed further away. Less hawkish. That move on the dollar is getting very important. Can you afford to be hawkish when the ecb is going the other way . We are on the verge of breaking out on the dollar index from a nineyear trading range. You can easily get 4 upside here. If you are a central banker, that is obviously a concern. When you think about the euro falling to a near twoyear low, we got manufacturing data out this morning. Simon, you know this better than anyone. Was weaker than expected. Of course, you are getting some comments from mario draghi that he does retain a whole host of options when it comes to monetary policy. Striking a dovish tone about what he plans to do with the euro. He is twice this week hinted at sovereign qe. They may not do it and it may not come, but its moving the euro. Ethan harris is cohead of Global Economics research. Thank you. Ethan, let me kick off with you. What do you think of the markets at the moment . Where do you think we are going . I think we are in a good spot here. The feds in no hurry to hike Interest Rates. The data looked quite good. Todays numbers, extracting from the crazy swings in aircraft orders looked nice and solid. This is a good macroback drop for the stock market. Kevin, what is your view . What do you think of this dollar . If the dollar continues to rise, surely at some point that has to impact this economy or impact the earnings of those multinational, those real Big Companies down here. Exactly. I think thats exactly right. I do think that the market is going to move higher from here eventually. We have come off a long way the last three years or so since ge began. The markets grown as better than 20 on an annualized basis. This cant go on forever. Even though the economy is doing well and earnings are flush and theres not a lot of places to go with cash, valuations do matter. I think we are at a point where maybe we have to consolidate for a while, but ultimately, i am happy to see data getting better. That means higher stock prices down the road. Do you believe there are so many Silver Linings in some of this data . Durable goods order helped by a strong transport order in july. Thats going to take a breather. Even some this morning say plans for new business spending look set to continue rising. Then there is negative housing data, too. What do you make of all this data and the fact the headline number does look bad, but underneath, there seems to be something that people are saying, look, im still bullish about this . As far as todays numbers concerned, the 18 number, throw it out. Its all distorted. Look at the broadest set of data possible. We see mostly the data is moving in a direction that signals growth. Thats an unqualified positive for the u. S. Economy. We are growing. Thats nice to see. We contracted in the first quarter. Its been a big turnaround. There is nothing but positive stuff there. All im saying is when you look at the value of the equity market at 23 trillion or 24 trillion on a 17 trillion economy, begin low Interest Rates and given very high profit margins, its still rich. I think the market may have to tread water for a while. Ethan, youre the economist here. Sorry to bring you back to this dollar story, but everybody else around the world is talking about it because its so important to them. If the dollar is rising this economy may be a victim of its own relative success. Can we just stick with that as the story or does it impact this market . The dollar has moved a bit by historic standards. This is not a big move. It feels big if you are in the Foreign Exchange market and trading on a daytoday basis. For the macroeconomy, it may slice 1 10 off growth going forward. Its not that big a deal. Again, we shouldnt be surprised there are some numbers that dont look as good as others. We are not talking about a ripping economy. We are moving from 2 growth to 3 growth. Not all the data is going to look better. The gdp statistics, which sum the whole thing up, Third Quarter growth is now looking line 3. 6 . We are in a pretty good spot. From an institutional standpoint for those big investors, what this dollar does mean, the fact its rising, is that treasuries are a good bet. U. S. Assets in general are a good bet if youre coming from anywhere else around the world. Does that explain to you why treasury yields remain so low . Will it keep treasury yields low . I mean, you have to credit Global Factors for low treasury yields. We have had a lot of negative news in europe. We had negative news in japan and china, brazil. Theres a lot of soft stuff out there globally. Bond yields in germany at 1 . Japan at 0. 5 . The u. S. Bond yields look pretty good by comparison. I do think those Global Factors act as a limit on how fast the bond market can sell off in the u. S. Before we let you go, what part of the market should people be in now . Health care did really well yesterday at 1. 6 . Consumer staples up 1. 2 . Relatively broad based. What do you like at the moment as a strategist . We like cash flush companies. We like cash flush sectors, not a lot of leverage. Tech and health care and Consumer Staples make sense to that. I would just go back to your dollar point. Youve got to understand whats happening in terms of the dollar, youve got falling Inflation Expectations which the fed is watching carefully. To the extent Inflation Expectations are falling, the real purchasing power of the dollar is swelling, for lack of a better word. That is what the fed is going to be keying in on. The fed will have to address this in the not too distant future, i think. Good to see you guys. Thanks for the analysis. Kevin caron and ethan harris. Judge. Apple confronting fallout with the new ios 8 operating system. Pulling update after users complained they had calls blocked and couldnt unlock their phones with their fingerprint using that touch i. D. Technology. Apple released a workaround to fix the problems. The company says, we apologize for the great inconvenience experienced by users, and are working around the clock to prepare ios. 8. 0. 2 with a fix for the issue and will release it as soon as it is ready in the next few days. Quite a turn of events after the hype over that launch. People are making the comparison already to apple maps and the debacle when they replaced google maps as the default. I dont know how serious yet this is. May depend how quickly they can release the update. They did get figures how many people downloaded it. You would think early days, only the absolute obsessed would have downloaded it by now. That didnt stop it from being on nightly news last night and on the front of usa today today. My favorite tweet, somewhere scott forestall is having a good laugh, the engineer who was ousted. I like the way they linked it back to tim cook when he said it was the greatest launch. I think a lot of peoples sympathy would be on the side the fact product cycles are short. There is huge pressure to bring all of this to market. Remember when jobs was in charge . Its not unusual for things to go wrong. If you are going to set expectations that high and have youtube play at your launch, you are going to be subject to the smallest amount of criticism. The fact in this glitch touch i. D. Stopped working, that is the technology that is supposed to be enabling apple pay. If you do have technology that is so integral to a brandnew platform like apple pay that does have a glitch, that is going to get a lot of haters talking about, well, is apple pay going to be changing this business or are there going to be huge risks out there . Haters dont buy the products. The people on twitter are not necessarily the bulk of people who buy the products. No. The other interesting story is all the reviews of the blackberry passport out today. Doesnt get nearly the attention. There are interesting descriptions in the papers today. Steve ballmer has gone from running microsoft to becoming its largest individual shareholder. What does he think about the job cella is doing . How do you beat the number one seed . You just have to win 70 of your points at net. And keep unforced errors under 10 . On the ibm cloud, the us open analyzes 41 million data points from 8 years of competition to uncover key insights. Data can help show you how to win, no matter what business youre in. Today theres a new way to work. And its made with ibm. 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. It has been seven months since Steve Ballmer stepped down as microsofts ceo, but he is the biggest individual shareholder. What does he think about the job his successor has done so far . Josh lipton sat down with ballmer and joins with us more. Since taking the reins from ballmer in february, he outlined a clear game plan for microsoft focusing on mobile technology and cloud services. I asked ballmer if he agreed with that strategy. Im excised and enthused about his job. Hes made a couple of Big Decisions which i think are important. There is work we had to do to rationalize the nokia being a sis. He took steps. He has come out strong in terms of the cloud and mobile, which i think is fantastic. I know hes built an incredible followership in the leadership team. He is off to a fantastic start. Truth is, you cant tell how anybody is doing in the tech business for at least five, ten years. The key decisions getting made, you wont see those in product two years, three years. The jury, as it is on me, you take any one period of time, i probably looked better or worse than any other one period of time. Its always about the body of work. Ballmer served 13 years as microsofts ceo. Later, youll hear him grade his own performance in that role. Back to you guys. Fascinating, i mean, every word he says is new insight. We havent heard much since the purchase of the clippers. I assume while get to that late they are morning . Absolutely. A lot of talk. It was wideranging discussion. We talked nba, clippers and the future of microsoft. All of that coming up later. To double back on what he is saying, you dont know how a tech ceo is doing for five or ten years. Does that mean the next five to ten years of microsoft will all be about his tenure . I guess his point when i was talking was that he agreed with nadellas strategy, but they cant be certain if that is the right one because it will take a while for these new strategies, products and services to get in the pipeline. It will take time before you know whether you are on the right course. In terms of ballmers legacy, he says its really about the body of work. You could pick and choose any single period of time under his tenure and make a different decision about how he actually did, but what do you think the body of work does say about him . This stock is down 22 under that time. You know, i think that if you talk to analysts who cover this company arc lot will say its a mixed legacy. You look at roecevenue. The top line did jump to 82 billion. Critics will say he missed big trek sends, social, mobile cloud. I asked him that. I think he gave an honest response. He said in 20 20 hindsight, he would have done things differently, particularly with mobile. The jury seems to be mixed. Growth on the topline. There are shareholders who were disappointed. We are looking forward to more of that interview later today. Josh, thanks for bringing that to us. When we come back, whats first and foremost on art cashins radar today. Wall street veterans will tell us as we count down to the opening bell. The child prodigy who said no to apple. Stick around to see what we are talking about. Futures just about ten minutes before the open indicating red across the major averages. More squawk on the street straight ahead. Guys youre not gonna believe this watch this. Sam always gives you the good news in person, bad news in email. Good news fedex has flat rate shipping. Its called fedex one rate. And its affordable. Sounds great. [ cell phone typing ] [ typing continues ] [ whoosh ] [ cell phones buzz, chirp ] and we have to work the weekend. Great. More good news its friday woo [ male announcer ] ship a pak via Fedex Express saver® for as low as 7. 50. [ male announcer ] ship a pak via Fedex Express saver® in a we believe outshining the competition tomorrow quires challenging your Business Inside and out today. At cognizant, 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. Few minutes before the bell. Lets bring in art cashin, director of floor operations with ubs. Good morning. Happy to be here. You used the word impressive to describe the bulls rally into the close last night what do they have to do to make their point today . They really should try to make it two days in a row. Yesterday started out pretty much as an oversold reflex rally. It rolled over. They managed to hold the s p right around the 50day moving average. Then followed what looked to be a large dollop of Short Covering. You get a vertical rally that is a sign there is Short Covering involved. When they held at the 50day moving average, the dippers and short covers came back in. If they roll over here again, that is going to raise questions about the september october syndrome. Do you think that 50day is solid footing . Its important. The next test, if there is another test, will be critical. I think the first test will be somewhere around the 1987, 1989 area if they go through that, it will lock like yesterday may have been a reflex bounce. Traders are watching Technical Levels in the hyg nearing the august 1st intraday and closing lows. Its been pretty spectacular, the demise of that etf as theres been so much less faith that the junk bond rally will continue. Do you think we should take any sort of sign of a trend from that . Thats led the market in a lot of ways. I think do you want to watch that. It gives you some idea of how nervous people can be. I would watch that in parallel with the russell 2000. If those two continue to retreat or weaken, then we probably have more work to do on the down side. Yesterday was obviously a good retracement. I think its half the losses from the previous two days. The volume of negative sentiment on those two days moving down the ratio of decliners to gainers was far outpaced what we had yesterday. I didnt explain that very well. The breadth of the market was a concern monday, tuesday. We didnt reverse that sentiment yesterday, some would argue. No. Thats why i say probably was a large dollop of Short Covering so the money was narrowed down rather than spread out through the market to the small handful of stocks favorites among the shorts. We knew alibaba was coming in the diary. People said it would be a big test for momentum of the market overall do. You think the jury is still out whether that was a major turning point . I guess from what you are saying, it is. I think so, yes. We want to see how we finish this week. As carl noted earlier, the week after the expiration in september has a historically negative bias to it if we roll over the stock moving down again, that will raise questions whether we are having a fully corrective move that may go into the month of october. Traders will carefully watch what this week looks like at the end. How is it possible the markets are still not digesting in i news on the geopolitical front . We got the most serious news this week we have yet, and still it doesnt seem to be sinking in. No. I think they dont see it as an immediate threat. Im a little concerned with the isis move on the kurdish village right near the border. If they take that over, despite the air strikes or whatever, i think the geopolitical risk profile will go up substantially. Art, thanks a lot. See you soon. Art cashin, ubs. Opening bell a few minutes away. Dont go away. Know that chasing performance can mean lower returns and fewer choices in retirement. Know that proper allocation could help increase returns so you can enjoy that second home sooner. Know the right Financial Planning can help you save for college and retirement. Know where you stand with pnc total insight. A new investing and Banking Experience with personalized guidance and online tools. Visit a branch, call or go online today. Became big business overnight . Like, really big. Then expanded . Or their new product tanked . Or not . What if they embrace new technology instead . Imagine a companys future with the future of trading. Company profile. A Research Tool on thinkorswim. From td ameritrade. You are watching cnbc squawk on the street live from the Financial Capital of the world. Opening bell in about 90 seconds here. Got news on a new ipo this morning. Travelport worldwide raising 480 million, pricing it 16 a share. Values of that blackstonebacked company at 1. 9 billion. To start trading today under tvpt. Well bring you the opening trade followed by an interview with the ceo later in the show. We know ipos and secondaries, too. Eight secondaries priced overnight on tuesday evening. That is quite a sign of opportunism on existing investors to take advantage of some of the markets recent gains, froth, call it what you will, to actually take money off the table. 14 ipos this week. Mixed reception by investors. Citizens Financial Group going public yesterday. The biggest Financial Services in banking ipos since Goldman Sachs in the late 90s. That was down. Had a slow start. It was up 7 by the close of trade yesterday. It rallied along with the broader market. Today its down about a percent this morning in the premarket, as we are awaiting the opening bell. With suitcases. Climb change activists marking the u. N. General assembly and climate week. Check out go pro. Recall it went public at 246789 it is now up 180 from its opening ipo print. Critics calling it camera on a stick. A lot of people who tried to put shorts on this Company Early on have gotten whacked in that trade. I know a couple of them and they are out. They said this is too expensive to short as these levels. At least until the holidays. Cramer talked a lot about how he thinks gopro will be one of the biggest beneficiaries from consumer pockets that are more willing to spend this holiday, more willing to spend on some of these high tech, Consumer Tech gadgets. It could be a winner. Its the classic case of a stock that catches the imagination of people. Gopro people want to buy it for their kids. It looks like a great idea. There is competition coming from the chinese, we should note. They announced they are going to come out with much cheaper versions. Sony, other companies in asia ostensibly would have a lower cost of entry because of the manufacturing costs they enjoy over there. Well see if they present formidable enough competition to the likes of gopro. Nothing has been able to stop that stock, not even the shorts. And jabil circuit, company that makes these opponents. They had good guidance for the full year. They saw end market strength in q4 continuing into q1. It was up last night 4 after hours. Already up 20 yeartodate and one of the biggest gainers on the s p right now. I was going to say sketchers is going to release a statement. They said they havent fully realized exactly what is going on with the company. You see a bounce there 3. 7 . That is still a company that has seen its market cap grow yeartodate up 64 . Pretty incredible move for that stock. Of course, nike is the big dow component people are going to be watching today. That Company Reports earnings after the bell. That is a company that is very sensitive to swings in currencies because of the Global Nature of its business. Begin everything weve seen going on between the euro, the yen and the dollar in this most recent quarter, there is an expectation that maybe nike wasnt well enough hedged for that. Or that it could be caught flatfooted because of those swings. A stock that has gone up nowhere this year. Euro, since nike last reported, is down 6 versus the dollar. The yen is down 7 versus the dollar. The journal taking a crack at not just currency effects, but demand creation expense, mainly the endorsement deals and how much more expensive that is getting. Up 36 in fiscal 2014. To what do they attribute that . What the market will bear. And the added complication having to cut deals with ray rice, with Adrian Peterson with osc oscar pistorius. And disney, rights to make character toys, which mass hell has. Hasbro had a nice pop yesterday. Today New York Post had a character of barbie crying as they lost that deal. Investors who want to play the space because of the strength relatively against mattel. Mattel has been going through a transformational shift. Every single Earnings Call the company has, they have to address this. Did you see the upgrade from tiffany . They say there is a misconception that tiffany fully recovered from the recession. They say if you look at the comp increases, its all about the pricing. Unit sales in this country, they say, are 30 still below that peak on a per Square Footage basis. They have a price target of 110. You could discuss whether there is a structural change that means youll never rebound to that level of unit sales per square foot at tiffany. Its an interesting call. An interesting argument. Might try to get them on the show later. An interesting argument because this is taking aim at the americas segment of tiffany, which was thought to have recovered fully at this point. Maybe there were other segments, europe, asia, given what we see in the macroeconomic landscape. This is about the americas. Jpmorgan, first indications for lead table. These are very important to bankers and Investment Bankers about how much business, how many deals both ipos and mergers they advised on. Jpmorgan from some boutique Research Investment houses say jpmorgan is in the lead for lead tables. Deutsche bank are side for second according to this firm. Its interesting with all the deals that have fallen apart, we know banks dont get paid when deals fall apart. They are still on track for close to record fees on some of these deals, on some of these ipos and a lot of the bonds theyve been underwriting as yields remain low. Keep an eye on crude. Bertha coombs reported whether or not u. S. Crude could underperform International Prices by as much as 30 based on what one firm is causing a mega glut in u. S. Production, unless the United States starts exporting crude in a more significant fashion. That would be a big deal, especially given all the geo politics you referenced with cashin. If we talk about oil, we should talk about gold which has continued falling. Technicians are watching that 1,200 level. If it breaks there is expectation it could go farther. Its down about 1 yeartodate. Its down 0. 75 just this week alone. Certainly will be interesting to watch that. Normally thought of as a safe haven. Now thats thought to be the dollar. There is a bigger phenomenon in commodities. A lot is dollardriven. We were talking about the Dollar Strength. You drive down the prices of commodities. Youre also driving out a lot of speculative activity from a number of those trades. The pricing becomes much more real, much more effective. At what point with oil where it is do some of those projects internationally become nonviable . That is the discussion for those going deeper and deeper to try to find oil around the world, perhaps relevant to this company with the fracking. Another day of activity by post five. Lets get to bob pisani. A couple of big ipos pricing well. The one youve been talking about is travelport. They priced at the high end, 14 to 16. Price was 16. Over hire is mlp. That one is cohen mid stream partners. They have a very nice dividend. Thats what people love about these things. 4. 25 dividend yield. They priced at 22. Lets look at our ipo score card today. Ive been showing you who is winning and losing. Travelport priced at the high end. We had one postponed. Vantage energy. Why would the oil and gas company be postponed . Obviously, they didnt get the price they wanted. Cone midstream pays a juicy dividend. Vantage doesnt and i think to a lot of people, that matters. First we are getting a little bit of pushback on prices. We saw that yesterday with citizens bank. Mlps, Master Limited partnerships are hot. Three new ones filed in the last 24 hours. Third, theyre willing to pay up for growth. What is growth . Let me show you recent ipos that are growth stories. Recently, gopro up 200 . El polo loco up 138 . Mobileye went public. Cyberark went yesterday. You know the story with alibaba. That is up 30 . You get growth, they will pay up a lot of money. Otherwise they are going to fight back. Let me talk about how the markets are opening. We are opening to the down side. Take a look at the futures there. We drop close to 8 30. The numbers were revised upward in the prior month. There was a little bit of concern these numbers are going to be fairly good, kayla. In fact, that may be a little bit of a concern about the fed moving earlier than expected. Didnt see a lot of move in the bond market. I would note picking and they are trying to pick a bottom in some energy stocks. Still not working. Most names are sitting there doing nothing today. I want to point out, we have 26 to 28. Cone mid stream. That is a nice price. They were 22 priced and we are looking at 26 to 28 for the indication. That is an mlp and that is a sign they are paying up for dividend yields. Judge, they like those incomepaying stocks. Well keep an eye on those stocks as they set to open. Lets check in with Bertha Coombs at the nasdaq. Apple definitely the drag in terms of point impact here this morning. The stock continuing to slide with the situation with the ios 8 update being pulled. For me personally with my iphone 6, its been slipgate. It slips out of my hands. Ive broke ensecond screen already. Yahoo getting a downgrade. He thinks the alibaba ipo situation makes the pricing object yahoo more difficult now. Yahoo entered into oneyear lockup on the rest of its stake in alibaba. Shares this morning also trading lower. We are also watching the biotechs. We did see the biotechs rebound after a big slide over a couple of days. This morning they are mixed. Gilead, the best performer in the nasdaq 100. Mankind is a winter. It entered into a licensing deal with sanofi. I will show you. This is my replacement for the first iphone i got, the iphone 6. This is my replacement. It just slipped right out. I was holding it with Something Else and it fell and shattered. The screen or the whole phone . The screen. I havent been using it because it just shattered. There wasnt a case at the store when i went there. Ill be back at the apple store this afternoon to buy a new one. Bertha coombs at the nasdaq, thank you. Lets head over to chicago the bond pits and see how Rick Santelli is shaping up this morning. Good morning. On the treasury side, we are looking forward to the 1 00 eastern end of the last the supply wheel which will be 29 billion sevenyear notes completing 93 billion. How have the markets reacted this week . Today we had weaker than expected headline month over month drop in durable goods going back to the data series creation. Last month was the biggest at 22. 5 . Its a mean reverting volatile series. You can than see on a twoday chart 2. 57 seems to be the stopper. Lets look at two charts moving back in time. Month to date with tenyear notes yields moving mid year june. You can see the breadth of the 25 basis point extension of the range and theres a lot of wood up there in the 2. 60 that well have to get through to see rising rates at 3 . If we look at in boone deals, we look no further than starting the chart a bit before september 1st. You see the lowest yield close in history there. We are dabbling under 1 . Short maturities around the globe do have negative Interest Rates. Lets switch gears to Foreign Exchange. Euro versus the dollar, this chart goes back to november 2012. Depending on where it closes, we could be comping back that far. 1. 27 area is huge technically. Dollar yen. We are flirting around this 1. 09 level, best levels since the summer of 2008. Lets get away from the dollar index for a minute and look at the mexican peso. I always said its not the Dollar Strength as much as the weakness, whether the euro or yen. You have to give the dollar credit. Breaking outside the dollar indeck, we are at the best levels on the pesos since february this year. Back to you. Thank you, Rick Santelli. Lets check out action in commodities. Good morning, carl. Despite that stronger dollar, we are seeing strength in the Energy Complex today. West texas intermediate is up 1. Note that the spread between those two is coming in. That means brent is falling out of favor a little bit. The bounce we are seeing in wti not on geopolitics, but buying the dip mentality. This market is well supplied. I do want to take a quick check on gold. Its hovering around that 1210 level. Traders are saying the next stop could be 1125. Metals, a place where that stronger dollar is having an impact because they are down across the board. Back to you. Thank you, jacqui. When we come back, from bending iphones to pulling an update, several complaints from several users. How concerned should investors be about the problems at apple . It is the worst performer on the nasdaq 100. [ male announcer ] some come here to build something smarter. Some come here to build something stronger. Others come to build something faster. Something safer. Something greener. Something the whole world can share. People come to boeing to do many different things. But its always about the very thing we do best. Its in this spirit that ingu u. S. Is becoming a new kind of company. But its always about the very thing we do best. One that helps you think differently about whats ahead, and whats possible when you get things organized. Ing u. S. Is now voya. Changing the way you think of retirement. A series of snafu for apple and a botched ios update weighing down the sox. Its now down 2. 25 . Thats the bulk of its losses over the last week which it did post record sales for the same iphones. Lets bring in walter pisek. The terrible, horrible, no good, very bad day. Are these issues that serious for apple . I dont think the ios 8 issue is a serious one. Sounds like theyll have it resolved in the next couple of days. Its been a hassle for customers that havent been able to use their phone and had to download the prior version, but i think people will forget once its fixed. The bendable iphone 6 plus may be more of an issue. If this continues to bend and people take out a product known for quality and show their friends that theal danger sign. That is a really fascinatingq point. Jf kasie hunt, thank you. Time is of the essence in that campaign. Appreciate your reporting. Well, before break, trivia time now. 1954,ni actorxdcot danny kaye thek rst u. N. Goodwill ambassador. We want to say a hearty congratulations to the winner, mark goldberg. Congratulations, mark, and happy thursday. Act i. Scene 3. International concerns about ebola and extremism made nations, but just a few blocks uptown theyre gettingni ready r a more public call for change. Saturday ine1t central park, t globalnzi citizen3w festival wi superstars in axd freeco concer draw attention to global issues like poverty and education. Alex wagner is host of now will cohost coverage of the event. Alex, thanks for joining us this morning. Thanks for having me. O this couldnt be coming at a more critical time. There are three themes to this event, tell us about that and the names that are going to joir you. Sanitation. Doesnt sound thatok sexy, but hugely important issue in the world, and education which your talk a lot about in terms of stabilizing global community. The best part of this thing isx there are some really serious topics that are going to be addressed and actions that are going to be. Female announcer the savings really stack up during sleep trains inventory Clearance Sale. Save 10 , 20 , even 35 on a huge selection of simmons and sealy clearance mattresses. Get two years interestfree financing on tempurpedic. Even get free delivery sleep train stacks the savings high to keep the prices low. The inventory Clearance Sale is on now . Guaranteed sleep train your ticket to a better nights sleep. The dow is down triple digits as we gave back some gains. The ipo is open for trade. Bob pisani is on the floor. Travelport, 17. 69. Thats a very good open for them. Remember, the price talk here was 14 to 16. They priced it at 16. It opened moments ago at 17. 69. We are waiting for another ipo that will have a bigger open here. That is a Master Limited partnership. This is cone mid stream partners. What people find attractive about this is the dividend yield north of 4 . We are waiting for that to open. They priced at 22. Price talk was 19 to 21. It priced above that. Indications are we just opened. We are standing here its 28. 50. After pricing at 22, Cone Midstream opens at 28. 50. Bottom line, investors will pay up for growth like alibaba and will pay up for big dividend names like cone mid stream. Back to you. Thanks a lot. When we return, more of josh liptons interview with Steve Ballmer. The former microsoft ceo grades himself on 13 years running that company. The ceo travelport on his companys wall street debut. Dow is down 112 points as we give back almost all of yesterdays gains. I love having a free checked bag. With my united mileageplus explorer card. I have saved 75 in checked bag fees. Priority boarding is really important to us. You can just get on the plane and relax. I love to travel, no foreign transaction fees means real savings. We can go to any country and spend money the way we would in the us. When i spend money on this card i can see brazil in my future. I use the explorer card to earn miles in order to go visit my family which means a lot to me. Big day . Ah, the usual. Moved some new cars. Hauled a bunch of steel. Kept the supermarket shelves stocked. Made sure everyone got their latest gadgets. Whats up for the next shift . Ah, nothing much. Just keeping the lights on. laugh nice. Doing the big things that move an economy. See you tomorrow, mac. See you tomorrow, sam. Just another day at norfolk southern. Hello. You can go ahead and have a nice flight. Re. Music plays music plays traveling can feel like one big mystery. Youre never quite sure what is coming your way. But when youve got an entire company who knows that the fewest cancellations and the most ontime flights are nothing if we cant get your things there, too. Its no wonder more People Choose delta than any other airline. Welcome back to squawk on the street. We begin with Steve Ballmer paying 2 million for the clippers last month. Why he thinks its a worthy investment. Travelport made its debut as a Public Company on the new york stock exchange. A plane as big as a boeing 747 jumbo jet thats powered by the sun. Two pilots plan to fly that plane around the world nonstop next year. Will join us live here at the nyse. We begin first taking a look at the markets. The seesaw week continues right now with all major averages trading into the red. Russell 2000 down by about a percent. Nasdaq down by a percent as well as apple has been slipping. Down by 117 points. This is yet another tripledigit move to one side or another continuing this week. Joining us here post 9 00 is mike santoli. At what point would you say this is a dip investors are not willing to buy . They bought it yesterday afternoon. Short covering, a reflex technical bounce maybe. I think we are a couple percent away from deciding whether this is not a dip that gets bought. I dont mean today. To me it looks very similar to july august, where you had essentially the same dynamics in place, weakening credit, small caps underperforming badly. All of a sudden the s p succumbs a little bit. Everyone notice small cap has been weak. We have the extra element of the dollar to the up side. Small caps are how tough credit markets get imported into the stock market. Essentially the strong dollar can knock all things loose. Thats what we are seeing. Hasnt brent told you this story a long time . The number has. I dont mean just the russell. Sure. All that talk about how almost half the stocks in the nasdaq have been down 20 from the high. Yes, the whole year has been a churning digestion year, except the indexes managed to have enough big cap leadership to hold up better. Their argument is this week if you are going to take winners and own something in the quarter, tell them here, right . In theory, that is true. Its all kinds of noise in the end of the Third Quarter because for whatever reason, the week after that september expiration is always typically weak even though its a quarter end period. It does not get the upside boost others do. Do you believe there will be a Fourth Quarter chase on some of the momentum names . I do feel like if this decline gets to you one of those oversold points, everyone says maybe we dont have to are worried about some of these things. Strong dollar. Does it have people talking about the fed doesnt have to move as fast and that gives you a reprieve, maybe that is an excuse. Today is one of the high holidays in the jewish face. You had a post last night saying there is a wall street adage, sell on Rosh Hashanah and buy on yom kippur. Its been an old rule of thumb thats come out into the open. It seems like, of course the dates change each year with the lunar calendar, but it does say there is a cultural inclination to say unburden yourself for the jewish new year, sell your stocks or get rid of all these tainted things and buy them back on yom kippur. It happens its a weak season for stock. If im at home and i enjoyed this rally through, but im slightly nervous and i dont quite get all the detail youre talking about, but im worried this might be a top what would you say to people . Mostly, if you are that worried and youve ridden this and worried on a 2 decline from a high, you probably own too much. Youre probably too wedded to every little wiggle in the market. I dont think thats necessarily healthy. I dont think the underpinnings have changed. This bull market continues . I think it struggles through. Valuations start looking better when earnings rise and stock prices go down. How about if we were a triple digit move on the dow today. If we close on that, its four days in a row. Havent done that since mid april. Statistically significant . It does tell you we are importing volatility into this market on some level. To me, you have to keep looking at the credit markets. If credit markets calm down, if high yield spreads stop widening out, that is an allclear. We havent seen that yet. Trace that through for us. Explain that, how that connects through. The high yield market, basically the market for corporate debt for the riskier companies has been the leadership area of this whole bull market. Its been the area that easy money policies manifest themselves. As that credit gets higher priced and lowering yield, it makes the earnings yield look better. Its been this relationship thats gone a while. Credit looks better today than it did one year ago. Just stopped improving. If youre drawing the line of correlation that way, people would draw it to qe saying this is the ending of qe, potentially. It is all related. I dont think its the fact of the end of qe that matters as much as it matters we are getting closer to a tightening cycle, trying to adjust to the idea of maybe less liquidity on a monthly basis. As yields are coming up on other instruments and securities, maybe its not worth taking the risks of a highly leveraged company and buying that debt, correct . That is true. Especially if you dont think the economic underpinnings are going to justify taking that risk. The index, the yield in total is approaching 6 again. We are in a world where 6 starts to look good. There is also, bears will point to oil demands. Every month is a new downgrade in terms of global forecast. Talk about how low west texas could go relative to International Prices. That is not encouraging. Its not encouraging. There is a muscle memory that grew up in the 2000s we think Commodity Prices have to go up to confirm a decent economic story. We feel a strong dollar is a safe haven bet and not something we should welcome. If you go back to the 90s, it was the reverse. You had commodities crashing, strong dollar and equities had more value. Lets be in to doubt, the world is slowing down. Everybodys estimates are coming down. We dont need it confirmed by commodities. An uneven growth picture. Thats why in Central Bank Policies are out of sync because of that. In just two weeks time, well have earnings to throw into the mix, which will make this conversation more fun. Well see you soon. Steve ballmer completed his purchase of the l. A. Clippers last month paying one of the highest prices ever for a pro sports team, 2 billion. Josh lipton sat down with ballmer and joins us with more. Morning again. Most people when they retire they pick up golf, travel, maybe spend time with the grandkids. If you are Steve Ballmer, you buy a professional basketball team. I always knew i wanted to have a chapter of my life post microsoft. I guess at least during the last several years when i had the resources to think about it, i thought it would be really fun. Paul allen who cofounded microsoft told me it would be really fun for me to own a sports team. Basketball, i like football a lot, but basketball clearly my first love. Soon as i retired officially in february, first thing i did was fly to new york, spend a little time with thencommissioner silver because he had taken over. And start brain storming how one gets really involved with this. My previous attempts hadnt worked. Im excited to be here. You paid 2 billion. Some thought you overpaid. How do you justify that price tag when you think about it . If you were a real financial guy, the cnbc viewer, you would say there are two things to anything. What kind of earnings can you make per year . Call that the dividend. And what kind of appreciation will you make . You put the two things together and get a return on capital. Can the clippers make money . Yes. Can they make more money than any other team in the nba . Yeah. Should be in the upper echelon. Maybe the lakers, the knicks. We are in a big market. We have more opportunity than in milwaukee or a smaller market. We will make good money whether we make 1 , 2 , 3 dividend, who knows . I make no forecast. But we will make a positive dividend. And particularly in los angeles. This is scarce property. This will appreciate. I expect to own this as long as im alive, so we are talking, lets hope, 25, 30 years, Something Like that. I would expect it to have Capital Appreciation thats at least as good or better as the S P Index Fund and s p fund and at the same time deliver dividend returns. Ifs that optimistic, would you have been willing to pay 3 billion . I would be silent on that point. No one ever talks about what they would have done. I know i bid the most and i bought the team. Ballmer says he is going to keep living in seattle, but youll be seeing him at games in los angeles, no doubt. Starting on october 30th, when the clippers take the court against oklahoma. Back to you. Theyve got a good salesman there. Thank you. Up next, travelport making its debut as a Public Company here. The company backed by blackstone. Blackstone is not selling today. Trading higher, as you can see, up almost 6 . The ceo and president will join us live post 9 00 when squawk on the street comes back. All major averages are in the red. We got a weaker than expected print on durable goods order for the month of august. We are having apple down about 2. 5 . That is leading to the brunt of the losses at the nasdaq which is faring the worse of all major indices at this hour. Simon, well have another opportunity for potentially an afterlunch gain . Dennis lockhart of the atlanta fed is speaking. Maybe hes a dove. Maybe that will echo there are expectations maybe the fed could continue accommodating. For now in the morning session, we are firmly into the red. Travelport has managed to have quite a good day here at the open of their ipo. Joining us is their ceo and president gordon wilson. What do you do . We are a travel Commerce Platform. We are a b2b business. Last year we trans yaacted 8 billion. Its not the same as expedia . You are what the travel agents would use . We owned orbitz, not expedia. In the meantime, you have this Payment System thats attracted enet. What does that do . Enet enables a travel agency to make a payment. It doesnt touch consumer payments. It takes payment from a customer, traveler to pay those who supply the activity for the customer. Its 78 billion worth of transaction value they pay to travel suppliers on behalf of travel xhcustomers. It wont be lost to our audience you are english. Yes. Swedish, perhaps. Dont start. Its been a bumpy path to get where you are today. What was the pitch to raise this 500 million . The underlying business has been turned around. In the last 2 1 2 years since i became ceo, we have a Significant Growth in our hotel distribution, enet business and how Airlines Want to sell their products. Secondly, we had a sizable debt pile. Weve done a lot of debt for equity transactions. Blackstone was the original owner of the company. Blackstone today owns 9 of the company and is now 6 . They are a shareholder, but a relatively small one, though important. We have taken 900 million worth of deleveraging this year before we came to market. We sold a stake we had in orbitz. Now we are four times over. You still have 3. 3 billion in debt or around there. That is nearly twice the companys market cap. 2. 2 billion of debt today. That incorporates the 900 million you said . Thats right. Now we have 2. 2 billion, which means we are four times ebitda. Talk about refinancing of the future debt. You are using the proceeds to continue paying down debt. What does that schedule look like . What we also did on september 2nd, we completed a refinancing of our remaining debt. We have one simple debt structure. No debt due till june 2021. Our Interest Payments have gone down by about half. We are a cashgenerative business. The dividend will start right away . Thats right. If you were to look at the company, where would you be in five or ten years time . What is the dream . Who do you rub shoulders with in the industry . In terms of size, in terms of where you are . We are a travel Commerce Platform provider. What we are trying to do is grow the level of transactions that go through our system and more samestore sales. Hotel booking, payment. Isnt that what everybody is trying to do . They are trying to do it, but not doing it as well as we are doing it. It will hopefully grow to about 8 billion business. We operate in 27 countries around the world and have a huge footprint in terms of all this new content we brought to the market. Air is still important. Of course what we are doing with air is enabling them to sell their products their way. When they unbundle to sell seats, et cetera, we can sell their value positions. The Fastest Growing is in hotels and payment business. Do you think pricing will be firmer in airlines or hotels . Pricing to the consumer . Yeah. In favor of the provider. I think it varies around the world. America, ive got huge consolidation of the airlines. Prices are still going up. You have supplies in parts of asia with all the aircraft orders coming in. I think its a mixed bag. Good to meet you. Night to meet you. Congratulations. Gordon wilson, ceo of travelport. Tonight, derek jeters last game. Check up shares of apple down 2. 5 . One of the worst performers on the nasdaq 100. Only one dow component is in the green, verizon is hanging on by a thread. 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They are going to be adding 1,200 jobs and a second shift for building the ft. Transit and Transit Connect advance. They have added more than 14,000 hourly jobs at ford since 2011. They exceeded the goal they originally set for all of next year. According to the president of ford of the americas, he believes this is an indication of the company seeing sustained growth over the next couple of years. We are forecasting next year that the industry can be over 17 million. We are forecasting between 16. 8 million next year. Well have to see how Interest Rates grow and the u. S. Auto economy and Housing Market goes. We believe there is potential for the industry to go above 17 million. This is what the industry auto sales are for this year. The estimate is we are going to finish the year with the industry selling about 16. 5 million vehicles. Thats up almost a million vehicles compared to last year. Ive got to go back to 2000 and 2001, the last time, the only time in the u. S. That the industry has sold more than 17 million vehicles. You take a look at shares of gm, ford and lets throw fiat because chrysler is increasing production at its warren truck plant. They will be building about another 38,000 ram pickups because demand is so strong for the ram. Sales up 21 this year. The bottom line is this, we keep hearing from the automakers they are adding second and third shifts. They are close to capacity at another of their plants. You are taking a look at them building the ram. If you have an industry that goes well above 17 million, youll see automakers say how can we pick off a little extra production at this plant, how many more jobs do we have to add . Its an interesting time for automakers, one i did not think they expected to see this quickly when they made cuts in 2010. Unbelievable numbers youve given us today, phil. Tonight marks the end of an era for major league baseball. If you want to witness the moment, you better be willing to pick up. The average ticket price for derek jeters home game priced at 700 and could become the most expensive regular season game in baseball history if not rained out. Jesse lawrence joins us here. Lets get the most recent prices. What are they going for today . 697. Down about 16 over the last 24 hours as all this weather talk heated up. I see percentage likelihood of rain 60 , 80 . What happens if it doesnt go . One, youve got boston next week. Yankees fans could make the trek up to see his final game. A game he is not quite committed to play quite yet. Correct. He will probably play. At least dh. The orioles control whether they want to make it fup if rained out. Maybe they run up their aaa team. If it doesnt get made up, 12. 5 million refunds could be on the line. Who ends up fronting that . Stub hub would have to make sure those are issued. The sellers are not getting paid for tickets they sought this he sold. How does this compare to games where he hit his 3,000th home run or world series games in the past . Sure. Those are all a fraction of this game. By a point of example, his 3,000th hit was average of 154, you could have gotten in with 19. The milestone issue is you dont know when that is going to happen. He was chasing six or seven games. You had to take a guess when that was going to happen. Its a different dynamic. I think that is the reason is there a good possibility this is the most expensive regular season game ever. Is he an island or baseball ticket prices going for more than the past . You mean ongoing . Is this a jeter story or baseball story . Jeter story 100 . 20 years as yankee captain. Yankees fans have shown they are happy to pay up for witnessing their history. This is one more case. It was expensive to buy a ticket, less expensive today. Do you think youll see a surge in activity for die hard fans who are willing to chance the rain now. Maybe. The getting price is now down 200. It will continue to drop throughout the day. If you want to go, you dont want to pay an arm and leg, keep checking tikiq. You might have to wait till 2 00 a. M. To see the game. I think theres a lot of yankees fan whose would do that. Do you think yankees tickets will be challenged for pricing . Theyve got a good core next year. If they dont get hurt, i think theyll be fine. The yankees in and of themselves are the attraction, but without jeter so this year their attendance is up 20 from last year when mariano had his final year. Jeters lift is maybe 20 . They have to make up for that with performance. Rebuilding, thats for sure. Thank you so much. Jesse lawrence. Straight ahead, markets sinking deeper into the red. The worst day since july 31st for all three indices. Nasdaq is down 1. 40 . Fisher, a hawk on the fed, suggested Interest Rates could rise the spring of next year. More on whats moving the market when we come back. 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Weve seen a string of injections leading traders to believe this market will be well supplied into the winter months. These prices were down ahead of this report and staying flat around 3. 85 at this juncture. Well under that 4 mark. Traders noting we are seeing options expiration today. That tends to exacerbate the price action we see around the natural gas futures. Again, we are staying lower, but where we were before this report came out. Back to you. Thanks, jackie. The s p and nasdaq erasing all of yesterdays gains. The nasdaq seeing a level it hasnt seen since the end of july. Lets bring in joe lavornga. You had a note out that stirred up people a little bit. We are getting mixed comments over the last 24 hours. Charles evans of chicago, Richard Fisher of dallas overnight saying that either markets or Interest Rates could rise earlier than expected or the dollar could have the pressure of more accommodation. Which side do you fall on . I fall on the dick fisher side of things. Unfortunately, hes leaving the fed and voting. Evans we determined to be the most dovish on the committee. The committee is about as dovish next year as it could be versus a neutral fed this year. Brian, yet this week we are looking at tripledigit moves every single day. Some days up, some days down. It seems like when there is buying, its buying the dip. When theres decreases in the market, it seems very broad across the board. Where do you put your money when you are seeing the volatility like we are seeing . Well, these are times you have to default the fundamentals and what we think investors from a longerterm perspective looking at high quality stocks and using fundamental disciplines like return on Investment Capital and cash flow and stability of earnings. That being said, it points you squarely toward areas in america like the financial sector, technology and industrials. Clearly whats happening today is the pullback in the commodity structure. Energy, the first half of the year outperformed after underperforming last year. Its selling into the end of the quarter here into the end of the month. Remember, september historically is the most volatile month of the year in terms of performance. Its been a strong year that surprised most people on the up side. We are not surprised to see this weakness. I want to highlight what you are saying here. Fisher is out. Two voting members, both of them hawkish out. What point do they leave the fed and what does it explain about why the market may be taking a deeper view of the doves on their expected Interest Rate rises . They are retiring. Im not sure its effective this year or early next year. They are only voting this year. They are gone next year. They made compelling arguments they are outside their consensus. Because the committee becomes more dovish and you look at the fed dots, the market already is coming to the conclusion, you look at the highs, you throw those people out. And this committee is going to be more dovish. Focus on those dots of the new people coming in. They tend to be at the bottom end of the range. This is why the futures market has much less tightening than what the fed is telling you the central forecast is. Where do you think could you push out the Interest Rate rise . My guess is begin how bullish ive been on growth and where i see unemployment, even the doves, and there are going to be a lot next year voting, even the doves are going to be forced to go. If not, the market will push them. The question will be once they start, where do they end and how much do they do next year . Thats the bigger issue. Even dudley under the right circumstances said we could go sooner. Question is how much . They move without taking off the considerable time period . No. They have to get rid of the considerable time. They wont surprise us in that respect . They will surprise us because the markets move in these types of things. They have to remove it. Back in 04 considerable period was six months before they hiked. They could hike maybe as early as march. I think its more likely june. Weve spoken about the dollar. I wanted to get your perspective on that with this very strong rise we had recently. Does it unnerve you at any point . Well, i think whats the trade over the next three to five years is what i like to call the recorrelation effect with stocks, earning, the economy, Interest Rates and the dollar are all positively correlated. Investors have to start to realize thats a good thing. Im with joe saying rates probably should go up sooner than most people think. I think the dovishness should have ended this year. The considerable time should have gone off the statement already. I think that is going to cause more volatility in stocks for the next 612 months. If this recorrelation effect which should and will take place is very good for the u. S. And very good for equities longer term. In between we have to rethink how we buy equities. Its about fundamentals going forward. I agree with everything brian said. One thing on the dollar. A very real broad traded dollar. We are only up about 6 from the record lows back in 11. This is a multiyear, longterm upside cycle for the dollar. We are too concerned about its effects on inflation. Labor will get a bigger splice of the pie going forward. Ill drink to that. Hallelujah. You say equities should be poised to be weaker the next 612 months. I didnt say weaker. Volatile. I said we could see volatility. Remember, we have reared an entire generation of investors, meaning the last ten years, that all they know is that the dollar goes down, Interest Rates go down, you buy stocks. Its all about emerging markets. They dont understand and they dont remember that the Worlds Largest gdp is america. They dont understand that the volatility and weakness in emerging markets in europe will actually cause capacity to come back to america and cause funds and money to come back to america. Thats very positive because they are still living the past dream that is going to cause volatility when the fed acts. That will provide longerterm investors with fundamental disciplines and opportunity to buy stocks. All right. We will leave the conversation there. Joe and brian, thanks for joining us this morning. Losses accelerating across the board. Dow down 1. 75. We have not closed down 1 on the s p in about two months. The last three times weve done it have all been on a thursday. A lot more to come. When fixed income experts work with equity experts who work with regional experts who work with Portfolio Management experts thats when expertise happens. Mfs. Because there is no expertise without collaboration. Its in this spirit that ingu u. S. Is becoming a new kind of company. Ing u. S. Is now voya. Changing the way you think of retirement. If energy could come from anything . Or if power could go anywhere . Or if light could seek out the dark . What would happen if that happens . Anything. Performing sector on the s p today. None of those sectors are in the green today. Morgan brennan is back at hq with whats moving tech. Tech taking a hit today. Its down almost 2 . It is the worst performing sector in the s p 500 right now. In fact, all 66 stocks in the sector are in the red. Names weighing on the sector, apping down about 3 , emc corp down about 3 . Sandisk, sales force and avago down 2. 5 . Thank you. Lets check in with Rick Santelli. As the dow gets close to down 200, all eyes are focused on the economy, maybe the fed. Many are focused on midterms. One thing we know for sure, 1 6 of the u. S. Economy is related to health care. If it gets more efficient, obamacare, that is, that would be a good thing. Business knows their Balance Sheets biggest cost is the human factor. I would like to welcome a special guest today. The reason he is so special, when it comes to blogging and coming up with details about the Affordable Care act, this is the man you talk to. Thanks, bob, for taking the time today. Good to be here. I have a simple question for you. The recent drop in premiums, and thats been well advertised as of late, is that proof the efficiency and productivity that obamacare was purported to bring to health care is well on its way to deliver . No. Insurance companies came up with moderate increases. A lot cut their rates for obamacare for 2015. It doesnt prove a thing. First of all, the Insurance Companies set those rates in may. Most of the enrollees came in in march, april and may. The Insurance Companies have had no claims experience. There is no claims experience to know whats going on here. The reason they set the rates so low is because there is a reinsurance provision inside obamacare. What that means is that the federal government will pay the losses any insurance incurs under obamacare for three years to about the 90th percentile. They cant lose money. There are consultants going around the industry telling the health plans that got little or no market share, cut your rates. If you dont cut your rates and get people into the program, youre going to be out of this thing. If you end up losing money by cutting your rates, the governments basically going to take those losses for you. You are not going to sustain them. We arent going to know until 2017. Does that mean if somebody has accountingtype style to looking at this program, we have to wait until 2016 to put accurate numbers . Oh, yeah. The Reinsurance Program takes the losses. The Insurance Companies arent going to have a really good feel for the first years enrollment until the middle of 2015. This Reinsurance Program runs 2014, 2015, 2016. The 2017 insurance rates will be the first time that anyone with ill really know for sure what obamacare is doing to the Health Insurance market. Its going to be three years. We have about a minute left. In that minute, my next question is, i see so many different statistics trying to give me information on has the amount of uninsured americans gone up or down since the implementation rollout of obamacare . The we are thing is, i think it was about a week ago, cdc had one set of data points. An hour later we see that the Census Bureau had a completely different set of data points. Can you explain and can you give me the answer to my question . Are there more or less uninsured . There are fewer uninsured. The cdc and other survey really need to be changed. They were done too early to have any sense of whats going on for obamacare. Here is the bottom line. The number of uninsured are down. They are down by 10 to 11 million, down by 7 Million People who signed up for medicaid. 6 or 7 million are in the obamacare exchanges. About half of those were previously uninsured. Yes, obamacare has reduced the uninsured by at least 10 million, im certain of that, but youve got to keep it in context. 40 million were uninsured when we started. So the class is like 1 4 full. This the obamacare exchanges, only one in three subsidy eligible people signed up the first year. You need to sign up about 75 for a sustainable program. Theyve got a long way to go. Theyve got to sign up as many people next year as they did this past year. Bob, im out of time it. Want to bring you back when we get the next round of information. Unfortunately, that will probably be after midterms. Youre welcome. Simon hobbs, its all yours. Thanks. Up next, all 30 components of the dow are in the red. Its worse than that on the s p 500. Only 11 components are in the green. Art cashin will be with us after the break. Theyre custom made trains. You cant get any better than that. Siemens trains are not your grandparents technology. Theyre something thats gonna change the cities we live in today. I find it so fascinating how many people ride this and go to work every single day. Im one of the lucky guys. I get to play with trains. People say, wow, we still build that in the United States . And we say, yeah, we do right here. With a control pad that can read your handwriting, a widescreen multimedia center, and a headup display for enhanced driver focus. All inside a newly redesigned cabin of unrivaled style and comfort. The allnew cclass. At the very touch point of performance and innovation. Thank you. Ordering chinese food is a very predictable experience. I order b14. I get b14. No surprises. Buying business internet, on the other hand, can be a roller coaster White Knuckle thrill ride. Youre promised one speed. But do you consistently get it . You do with comcast business. And often even more. Its reliable. Just like kung pao fish. Thank you, ping. Reliably fast internet starts at 89. 95 a month. Comcast business. Built for business. Welcome back. Im amon javiers in washington. A formal event at the white house, eric holder will announce he has plans to depart the administration after nearly six years of leading the justice department. Holder has been a key part from day one and a long serving attorney general involved in so many Key National Security and business Law Enforcement decisions over the years including the big j. P. Morgan settlement so hard fought last year. A long list of people that the president will consider to replace im. Obviously folks are already speculating who would be on the list. Early to aright now. But pre bahara would at least get a short look. But this is very big here in washington and a battle for whoever the successor will be. Interestingly his number two, tony west recently announced his plans to leave the department of justice so carl, openings here now at the top of the department and big shoes to fill for president obama. Thank you for that. In the meantime the dow is down 200 points. S p has blown through the 50 day moving average. No doubt components are in the green. Director of the floor operations with the ubs. This morning, art you said 1987 is what we should look to for support. That was a while ago. That went in a flash and we took out the 50 day moving average. So rumor mongers are out and about. So the viewers should be careful. But it is clearly rather heavy selling to. Simons point about the rally being narrow there is nothing narrow about this selloff. And also speculations that some might have had to get in the position of lick dating. I havent had to assess yet. But its very broad selling. The bottom of the s p 500, its clotted with stocks that have done really well. Apple, delta airlines, green mountain. A lot of high momentum names suffering the worse losses potential to the point you are making. Instant gratification for the sell on ra shah shauna going very well so far. But i dont think that is the entire cause. We had a conversation earlier about some of the risk in the high yield market. Weve now see both the hyg and the jnk approaching the lows hit this year, earlier in august. Richard fisher at the dallas fed said hes seeing extreme risk taking in the junk bond markets. Do you believe were going to sew that persist, this idea that there is money out of high yield and this is the start of something bigger. I think that could be a real problem. As i suggested and you said lets keep looking at the high yield etf and when you compare that with the russell 2000 you can see the riskier elements around the market are being hit right here. And as simon said a lot of nailing down profits on things that have behaved well for you. Youve chosen not to mention this rumor about russia, which i find interesting. Its out there. A single deputy has filed a possible bill that would allow russia to basically impound foreign assets. That is all we have on the parliamentary website according to the moscow times but that seems to be doing the rounds that that could hit obviously germany primarily. And as i say the rumor mongers are out and about. Its slightly counterintuitive theyd want to seize assets right now. They looked like they were trying to get into the position of being the good guy, if you would, pointing out that the u. S. Is taking moves in syria without them fully being sanctioned. Taking some of the heat off the ukrainian operations. But its there and the market will believe whatever it wants to when it is in a nervous mood like this. So levels to watch this afternoon . I would say if you continue to ess stay under pressure watch right believe here. 1967 to 1969. If you take that out, then this may turn into a september october event as i said before the opening. Can i have one last quick question. Is it slow volume because of the holiday . I think some of it may well be that. But it is not all that heavy. I think what happened here was a lot of people got caught off foot when the selling came right at the opening. And that is why i say im going to keep checking to see if it looks like it was one big unit or several different people. Really appreciate it. Thank you art. Quick check on the markets before we head into a commercial break and see where the damages are actually. Dow just above 17,000. Well be straight back. [bell ri] time and sales data. Splitsecond stats. Its so close to the options floor, youll bust your brainbox. All on thinkorswim, from td ameritrade. shouting location. Heres the location that matters the most. Here. Or here. Or here. Its wherever this is. 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Dow down 91, its hard to say off the lows because the breath is so pitiful today. Not a single component in the green. Maybe a dozen s p components in the green. Apple down 17 . We took. We talked with caart a moment a. Where the selling is coming from, whether one big portfolio that is selling a bunch of positions or several serls across t sellers across the board. You are looking at the nasdaq which is down about 71 points. Our cnbc Research Team has told us apple contributing 17 points on the just the nasdaq. This is not all bend gate or the ios 8 snafu. But when you have a. Its the lowest for apple in two weeks. As john fort just said on twitter, preiphone 6 levels. But to move it all that liquid is not easy. It is almost 8 00 a. M. Outwest, 11 00 a. M. Here on wall street. Squawk alley is live. Good thursday morning. Welcome to squawk alley. Joining us, henry founder and editor in chief of Business Insider. With us as always, john fort. We want to check on the markets before the stop stories. Right now the dow if you are just joining us down almost 200. Briefly