Its an ugly day on wall street, all major averages are down 2 . The dow wiping down 900 points in just two days we are on track for the worst start to the Fourth Quarter since 2008 and tech, one of the worst performing sectors today, check out some of these moves, microsoft, apple, visa, cisco all under pressure for more, lets get to bob posani a slowdown, not a recession thats a consensus will change the way you look at things a week consumer would second the country down for an Early Warning sign, ive been watching these big consumer stocks that have done well the last few years doubledigit gains here, theres some cracks showing. Starbucks has been weaker in the last month its down about 12 . That may not be surprising given how china is in its portfolio. You see some of the consumer giants here. You can argue, go to the defensive stocks these stocks have had large runups this year. That play has already happened these are very expensive names right now, coke, kimberly clark, Procter
Good wednesday morning welcome to squawk alley. Im carl quinnipiac. Jon fortt is at microsofts annual surface event in new york we begin with the markets this morning its been a rough ride to start quk q q4 behave bob pisani and mike santoli to break it down bob, ill start with you the important thing, this is the debate all year, what side of the recession debate are you on if you believe recession will start next yeear anyear, market dro markets will drop. You want to watch the big consumer names this year if theres a slowdown but no recession, these names should do well look whats been up, costco, home depot, nike, mcdonalds theyre across several different categories watch if they start rolling over so far its been modest. Starbucks is rolling over a bit. Jpmorgan had a negative comment on monday about them, but by in large they held up well if they start falling apart particularly after the jobs report comes out, i would get concerned. If youre in a slowdown camp, thats where i fee
Well and apple. That event is just wrapping up now. Announcements shaking out in the stocks of different competitors. Were going to fill you in on all of that action but joining us for the hour is steve grasso from stuart frankel. Steve, great to see you. Good to see you its amazing. Not necessarily a major move for the averages today or right now. Everything is slightly lower and actually, if you look at the week, the dow is actually flat so far to start off the week and yet theres been this great rotation talk to us about that. The rotation is coming out of growth into value. How long does that last is how long the market will be under pressure and for now, it probably will last a little bit longer, but get a trade deal, throw everything i just said out the window and you see everything rally back people are making the analogy back to 09 and 2016, with this rotation that lasted for a couple of weeks. I dont think it will be that long do you really think were going to get a trade deal
Seem like the mket is one step forward and two steps back. There have been bouts of volatility and head scratching moves. Stocks have been on alownd steady climb higher. Today the gains were capped because lfgering concerns about the global economy. The dow and the s p 500 remain just 1 1 2 away from their records. Th Dow Jones Industrial average was 14 points to 26,949. The nasdaq fell five and the s p 500 was flat. Mike santolli takes ali look at whether this market calm will give rise to something else. Steadiness has been the rule on wall street. The s p 5 remains within 2 off its record high. On going trade friction and the fed meeting that was meant to arify paths forward. Marketsre typically seen as well supported by iestors looking ahead to improve fundamental developments. The rally has been broad with investors apparently happyt t the u. S. Econoc committee will the market valuation today is about the same as one year ago which proved to be the 2018 peak ahead of the bruising
And possibly easing sanctions on iran. Josh, kind of a quiet market day here interesting rotations going on what do you make of the action today . This week its just been incredible for anything of value versus growth, anything small over large and theres a tend densy when we see these outside moves. For example, russell up 5. 5 over the last week theres a tendency to look at that and say ive missed it or that has to be the top of something. When you actually go back and find examples of this sort of thing happening in the recent past, actually that always had taken place at notable bottoms in the russell 2000. For example, we had three versions of this in the year 2016 where you have just this incredible week for small cap, for value and it wasnt the end of something or a blip it lully was the end of the selling. You can stay with this trade if youre on and. Portfolio tilt for smallend value. After a really long drought of good news. So a lot of people are happy about that take a look