Last week. Then on monday that nearly 600 decline. Another 200 point loss tuesday before yesterdays big surge the dow is still down though. More than 1 this week. But the nasdaq has narrowly erased this weeks losses off by. 2 . I was on the floor of the New York Stock Exchange all week and its not just the crazy moves where we settle, its the intraday volatility. Everybody was bracing for a repeat of tuesday. They had this giant rally and it started to lose steam and everybody thought here we go again and then it charged back. A bounce . A technical bounce . The first day, looks like wow, this is great. This is great. Its slowly declined down 200 and the next day it looked like thats going to happen again. You know at the end its going to melt up this time tnchts question is what comes next. Looks like were extending those gains. Is that the bottom . Is there a place called youre going to ask me if its the bottom. We dont talk about the bottom . 50 chance of a bottom. It doesnt matter what i think about a bottom and theres only going to be one bottom. And its going to be hard to call. But i think its what people want to know. But nobody does know and you can talk about it and its useless. Bloomberg, is there a place called bloomberg that does this kind of stuff . Yes. There was life before cnbc. Do they have a tv . Has anyone ever seen it . People watch it. Not nearly as many as watch here. Bloomberg is reporting that chinas government intervened according to sources to boost the market today. Theyre saying that the Chinese Market was down with a modest loss with 50 minutes to go and then ended up 5. 3 . China supposedly went into the equity market with big money buying blue chips. Theres the chart. And you know why . They want the market better for the september 3rd celebration which we know theres a big military parade celebrating the world war ii victory over japan where there arent many western countries going there because they think theyre going to throw it in abes face. Restart some type of little tif with japan. But thats going to happen other september 3rd. This goes back to your theory about how on the premieres birthday the stock market must go up. They did do that. That was a done deal. Now you know where theyre getting the money to do this. Thats okay right . We want them to support their stock market. Im a little actinxious that what theyre doing is artificial it creates a whole thing. If we all try to support stock markets using government money, sooner or later we run out. You run out of other peoples money eventually. You need from the ground up. Well theyre productive. They would probably say theyre getting there. Theyre trying to move toward a more market based economy but there are bumps along the road obviously and its not a good source of pride. Is this related to the former mayor of new york city. Is it all part of the 100 his company. Hes back in charge. Are you familiar with i know mayor mike. Youre familiar with this news. He run ace good company. I used to love it until they took them away from us about 15 years ago we had them here. If youre just waking up lets get you up to speed in the overnight action in asia and europe. The stock market there jumping more than 5 to close back above that key 3,000 mark. People are watching. Stocks swinging wildly in the final minutes of trading or so. China intervened to shoot up stocks. More on that from our reporters. As for the early action in europe a lot of green arrows on the screen. Bullish momentum following the big gains yesterday. The dax is germany is up 3 gains across the continent. Well check in with our colleagues in asia and europe in just a moment. Also the price of oil which was lower yesterday because wti today is surging. Brent up 4 . Backing off a little bit of buying of equities. A second look at Second Quarter gdp supposed to be higher later this morning. The euro is weaker. Strong dollar back in charge against the euro and against the japanese yen. The strong dollar has been correlated with strong u. S. Stocks yesterday and gold is higher today. 360. Its early. 1128 is the price of gold. Gold bulls were disapointed to see it didnt get better this week. Usually if you see an 11 point drop on the dow buy gold. Been a long time since anyone bought gold for anything which is evidence in the price. They bought the euro instead. Thats true. Im going next week. Where. For a wedding. A very good event. Wow, tuscany is one part ive never been too. A lot of Economic Data and a couple of key earnings report. At 8 30 eastern we get a read on Second Quarter gdp. The number expected to be revised up sharply. First reading was 2. 3 . Also weekly jobless claims at 8 30 and later in the morning pending home sales in the Kansas City Fed survey. On the corporate front the consumer is front and center. Well hear from tiffany and Dollar General and gm smuk, smu and then theres the fed. Many gathering in jackson hole but theyre not gelling with yellen this time. Shes a no show. As you know, was it worth 600 points to crack addicts out on wall street . Maybe it was. Bill dudley cracked headline with this comment. From my perspective at this moment the decision to begin the normalization process at the September Fomc meeting seems less compelling to me than a few weeks ago but normalization could become more compelling by the time of the meeting as we get Additional Information on how the u. S. Economy is performing. I think these guys sit around and okay lockhart. You say were still going to do it. Dudley you say were not going to do it. Well keep people on their toes. Good cop bad cop. Not raising a quarter point is good for 600. It really did so that happened during the 10 00 hour when we were on set. The dudley news and stocked rallied a little bit off of that and then they lost team and the gains are being attributed to the dovish comments but you didnt see the 600 point gain when he was speaking. If you dont think at 9 50 that the market already thought they werent going in september. I think were back to thinking they still might go. If you read all the commentary yesterday if the market stabilize theyre on track with the economic numbers theyre on track to start in september. They want to do it. He said that. I hope we can do it. I didnt think he said anything beyond conventional. Im still hoping. I know. That they go. Im still thinking they will. Im hoping that they will. Less compelling is a signal. Its a signal that the market has already processed. Here we are talking about it again. Its the signal in that. Not just the quarter point. Everyone knows thats easy policy but that is a signal that theyre in tightening mode whether the next one comes right after or not. They could wait another year. Just get on the board. We talked about having a monkey and a dog on the set. What a dove. Monkeys are disgusting stuff. Doves, constantly. They manufacture stuff. Dogs, you know, you can take them out. Take them out. Do your business. Come back in. Its all very civilized. But then you need a hawk. You have to balance. A hawk on one side. Take the dove down to times square where everybody goes in this new city that de blasio has. Its one big toilet down at times square. Julian is laughing. Thank you, can you sit here for awhile. I need some help today. Anyway. Hell join us with his conversation with Esther George. Andrew, its your read now. Lovely. Our global cnbc team has the market story covered this morning. Well talk about it as seema mody is in london but before that hong kong where susan lee is hanging out. I think everyone agrees out here its consensus that there was Government Intervention and buying from china in the last 45 minute of trade because we were down 1 and then up 5 which is the biggest rally weve seen since july 9th or so and we saw these sizable bids coming from china finance Security Corporation backed funds and its backed by the state council and other people took notice of the csf flows and it did seem obvious that china stepped n. They were buying banks. Some are saying this support is showing china and the markets look pretty good. And theres a term called saving face. Thats what theyre trying to do going into september 3rd. Were seeing funds going back in with china supporting the market again. Theyre trying to keep things light and hong kong following chinas rally but akocross the regions we saw japan following wall streets lead seeing a rally of 1 but they say this was not institutional money. The big institutions are still staying on the sidelines at least for today. They need a more compelling story to chase the markets. It wasnt a convincing rally today and well see how long those gains last. That balance in asia a positive session in wall street and a positive read on the health of the euro zone. That is right, lending to firms and households have increased in the month of july. Thats a vote of confidence for the ecb. This suggests that qe is working and the recovery here in europe is intact but thats not it, spain actually reporting a strong gdp number up 1 . Thats the fastest pace of growth weve seen in spain in the last 8 years. Spain seen as one of the come back kids here in europe. Now our attention turns to the upcoming election. This is the spanish equity gain around 2. 7 . Oil and gas given the rebound in oil prices this morning. Some of the natural gas and Resource Companies moving higher. Glencore with a gain of around 4 . Over to you. Thank you for that. In the meantime back here the Global Market turmoil hitting Many Hedge Fund Investors including bill ackman. He was one of last years best performing Hedge Fund Managers but now the firm is down for the year after the markets dropped. Three weeks ago he told clients the firm was up about 10 for the year through the end of july but despite the sharp moves they have made no meaningful recent changes so its current portfolio holding. It believes the value has not changed but diversity is not his thing. He likes to have a basket of half a dozen, a dozen stocks and hes betting on those stocks and thats the deal. Thats a company that i happen to cover, the stock is down 10 since he announced the stake this month. 80 of their business is overseas. They have ton of business in emerging markets. I always wonder how many of a macro take he looks at. How macro hes thinking when hes looking at a stock like that in terms of the value. Bank of america and other lenders were issuing calls to clients loaned by investment portfolios. Thats what happens when the market goes down. This coming according to the wall street journal. A big business for brokerages and the important part here is also that the firms are likely to take a hit on profits with a securitys based loan. A person pledges all or part of their portfolio collateral. But the client uses it for real esta estate rather than other securities. A rally for the market after six sessions. Joining us now. We dont need to know if its an exact bottom but we need to know if were making a botd tom. And whether this turns out to be a correction and not the beginning of a secular bear where we go down 20 or 30 . I think were in the process of making the bottom. Wouldnt surprised me to retest some of the lows. But not another 10 to 15 down from here . Thats more than a retest of the lows. If we were down another 10, that would be down roughly 15 . So you could see another 10 . I dont know if it will be exactly 10 but were down another 10 00. Nothing has been truly resolved here. The fed has not made a decision one way or another. Would it shock you if we already put in the lows. Thats possible too. To andrews earlier reporting on the margin calls you could see that happening when they have to be resolved at the end of the day. Especially with nyse margin calls. Is that why the 3 00 hour has been so crazy . I think so. Thats when you start to button up the margin calls. We were looking at that monday morning. Theres been a fair amount of damage here. Im not sure it would workout so neatly that the bottom would put in. Its been a v shaped correction. Can you compete with a guy with a bow tie and glasses like that . Do you want to try . Or defer to him . No. Basically if you look at the bear markets of the last 25 years every single one of them has been accompanied by a recession. So when we look at the u. S. Economy there is the probability of a recession over the next year and a half is very, very slight. You know,the jobs picture is strong the Housing Market is strong and what we got yesterday was this strong durable goods report. Were not saying the industrial economy is going to revival magically but it was a day that people had not been expecting. So its the last two weeks if the better like that around the world, you would be full on for the rate hike . The Economic Indicators are what the fed is looking for to raise. Absolutely. So they do need to care about animal spirits or stock market valuations. The fed, whether its overt or otherwise always has the International Situation in the back of their mind and you could make the argument that the chinese devaluations a couple of weeks ago was the first fed rate hike in a lot of ways. You had a lot of the effect that you might expect. It would make it worse if they did one. Were still thinking. Were calling for the hike in september. Really . Were sticking with our guns. Obviously the fed has made it clear that the data dependency is greater given the last several weeks. On our side of the house our view is that wed see the rate increases sooner than later. If you look at the numbers, the car sales, we have car sales at 17, 18 million rate. Last time we saw that was in 2005. Last time we had unemployment at these levels, 2. 5 , ten year rates were close to 4. Do we need an Interest Rate policy now . No. If the u. S. Market cannot tolerate a 25 or 50 basis point raise in rates if they raise Interest Rates in the middle of Global Market turmoil that would influence the outlook. Thats what bill dudley was saying yesterday. Thats a fair point but after almost a decade of zero Interest Rates when the realization that its coming to an end is going to create volatility in and of itself, if youre worried about volatility you end up getting in a circular argument. So you have to live with it regardless of the environment. It will never be an ideal time to raise Interest Rates. You have to look at the numbers to get on with it. The sooner you do it, the better. Rip off the bandaid. If you do go beyond the domestic economy, theres no country too small. It could cause them not to raise the economy. So we had greece. We worried about greece. Then we worry about europe and Southern Europe and now its china. It could be russia it could be brazil. Every single place we cant raise because of that . They may it clear they dont want the repeat of 1937. The fed doesnt want to derail the us. So they have been extra cautious but what we would say is its very typical when youre getting this close to the start of normalization to actually see a normalization in volatility and investors should not be fearful of this volatility. They should try to use it to their advantage. Okay. All right. Thank you. You did fine. You were not intimidated at all. Relief. Do you have anything interesting . I do but were going to switch gears. I was pointing because were switching fwegears to a tragic story. We have details about the mind set of a hand that shot and killed two former colleagues a tv reporter and videographer. He faxed a document to abc news in which he described himself as a human powder keg waiting to go boom. Nbcs sarah reports from roanoke, virginia this morning. Colleagues describe Allison Parker and adam ward as special people. The kind that were up before sunrise to put in long hours reporting the news. Their off camera lives were just as busy. Parker had recently moved in with her boyfriend. Ward was engaged to be married. If i walked into the office in the morning and the firstperson i saw was either adam or allison i got a smile on my face. They were interviewing a local official live for cbs affiliate when he opened fire killing parker and ward. He filmed the shooting and posted it to social media later as he was pursued by police before he turned the gun on himself. Its obvious this gentleman was disturbed in some way of the way things transpired at some point in his life. Things were spiraling out of control. Flanagan that was fired from the station two years ago went by the name Bryce Williams when he worked there. Management describes him as an angry employee. After awhile, a number of incidents, we thought it was best if he left the company and he did but not happily. He had to get some assistance from the police to get him out of here. Meanwhile, a growing memorial outside wdbj is focused on the lives of parker and ward. Late wednesday the Community Came together to mourn their loss. The nation used to covering the news, now the center of a tragic story of its own. In roanoke, virginia, nbc news. Woman being interviewed at the time of the shooting was also hit and is in stable condition this morning. Coming up on the show, more on that big market move that weve seen pretty much all week. The market story of the morning. Futures pointing to a higher open. Plus steve sits down with Kansas City Fed president Esther George on the big fed debate. As we head to break lets check out how were setting up for the morning. Dow futures up 183. Youre watching squawk box on cnbc. Every Auto Insurance policy has a number. But not every Insurance Company understands the life behind it. Those who have served our nation. Have earned the very best service in return. Usaa. We know what it means to serve. Get an Auto Insurance quote and see why 92 of our members plan to stay for life. Meg joins us with more on the cholesterol drug wars. This is a new class of drugs f