It was a good day. European markets have been reacting to the day we had on monday and, they are all losing to the tune of lets call it over 2 you can see germany dax have been particularly weak not just yesterday but last week as well. The german what they should be higher than ours, their central bank loves to try to take business. They have not reached those negative rates yeah. Speaking of rates by the way, it is such an enormous concern i guess of our markets as we watch the 10yr hits a 4 and 5 last week on job number on friday we backed off on the yield as you can see that upton pri o price. Oil, that hurts now, on our road map this morning. It starts with the global sell off and the markets around the world. U. S. Futures you saw it pointing to another big day of potential losses with the stock market plunging of just whats driving this decline and what are you doing to protect your portfolio. Well look at whats taking the biggest hits or find any bright spots thats out there it will certainly be more as the day goes on with various pockets. Shares dropping in asia and europe u. S. Futures are pointing to another rough open at least. Yesterday we had a rough opening and we came all the way back and of course, we really dipped a dramatically you are looking at time lapse of the dow yesterday. It went positive early in the session and fell almost 1600 points at its lows that was around 233, i remember and finished the down. It opens eyes but it is nowhere near the top list of your percentage loss since the dow and s p 500. I think whats important though, jim, to start off with okay, we had an incredible move out of the box in january and we have been talking about investor managers this morning so i lost my year on back for the year and now it is february 6th big deal, i got 11 months. I think youre right i saw the trucks the local news truck out front i dont know. They get in and they see the truck there zi tweand i tweetedf those pictures when you see those trucks it means that wow, we are about to have Something Big happening if you have been trading from 3 00 to 4 00, you would say there is a huge bull market. 3 00 a. M. Sleeping, big mistake, you got to take it in. Xiv went bust last night thats a piece of paper that you and i are discovering, turns out a lot of people are hiding that. Well talk more about that in terms of perspective there of. I think it is important to point out the direction, certainly right of giving the spikes and bonds when they came up with portfolio insurance. And mr. Bullard and if you remember, going back when we are this much over sold, august in 2015, that was a great time to buy. Lets talk a little bit more of august of 2015 because we were down 11 or 12 it was quantitative driven as many would say the machines dictate so much and the algorithm do that was on the chinese valuations and there were a lot of concerns. 215 on friday on xm wow we were down dramatically in twoweek period. We look back and say why was that and we can say because of the fed. Right we can say because of Interest Rates is that of what we have seen over the last a lot of people are saying because of greece. There is 8 Million People in greece, did that cost a thousand point . The machine broke down but we want to identify the filling, there is no lex luther no, when we look at the technicals and the quantitative driven models, we wonder how much further there is to go and if you can try to ascertain that if it was some what similar to what we are seeing here, we are not quite done yet, are we the idea of the market really breaks down the concept. I cannot say did exxon go down at 3 00 a. M. And down 10 at 7 00 thats the equivalent of what would happen pick something that you really like use the stock like costco. Costco made its quarter. You have to believe right now as of this morning that the Wealth Effects have been destroyed. No one is going to get the sample of crag legs at costco this weekend i think costco is a good one to look at. You want to look at boeing boeing got a 10year view of things not a 10 seconds yield of things which indicate you should sell it i lost my voice yelling for the eagles i understand. Are you going to be wearing green for the rest of the year from here until Saint Patricks day. A little over a month ago i dont blame you. You sound more than Warren Buffett than anybody else right now . I am that old you are talking about 10year, thats not the jim cramer i know. I am sorry, jim cramer changed after the super bowl, you got to get with the program. Why did i say costco the tax code and consumer influx and employer is strong i can pick home depot. So what you are also saying that nothing is fundamentally changed at the Economic Outlook at this point there is that can happen occasionally and we saw significant downturns in the market and we do pay less. I think some are saying we are as low as 16 times now, of course, they are using that as an indicator why you should buy. I like the over sold for indicator. I think financial would have been bought if it was not for wells fargo and janet yellen here is your hat, dont let the door hit you on the way out. That was amazing did you love how wells came out and told you not to worry, it impacts earnings a little bit but dont worry well go somebody should get a hold of wells fargos lawyer you and i have friends with some lawyers. You should take a vacation to go with a permanent of the election thats about to be on right now. You are talking about wells fargo of the final moment of yellens year of the fed chair of this extraordinary penalty. This is no like slap on the wrist. Theyre not allowed to grow in 2018 until they get their house in order and the board of director is taking responsibility of everything they should. Thatll take place by or before the end of this year the stock went down dramatically yesterday and we have the large selloff and it is down another 2 today you cannot focus on that when you are talking about the banks. I am just saying and i will also say, mr. Sloane, a very nice man the regulators give you their time frame wells have been wrong with a lot of things in terms of regulators first of all, they really matter and second banks are regulated they really hate that. Theyre human beings that put their clothes on i dont want to be told by those who i regulate what i am supposed to do, mr. Sloane should take that back hes a confident fella hes trying to dig out. Why dont you stay in the pound box until it is over you have been quite critical. Yellen, shes no longer the fed chair which has a regulatory as p econne aspect to it which we just referenced it is now a man named Jerome Powell i got to go to grade schoooge on cold on i am just having fun it does a occur to me that greece span 10year is powell is in a position where hes already facing an earl challenge and here you can make an argument hes going to be dealing with a complicated issues when it comes to rates and inflation and all of this was set off in part by wages of 2. 9 . We got a decent employment number on friday and you got a fed thats no longer engaged in qe endless amounts of notes and bonds to sell. They had the great chance does does it concern you . Yes that we got a new fed chair right now . Hes got to say things because they have these discussions that are like, you know, where they have the talk hes got to really do some major explain things thats implicit hes in a much guessable situation than janet yellen ever was. Yellen was retired. Although she would have been happy to take another fouryear. Thats my judgment because i think shes a Great American and did a fabulous squljob. I like mr. Powell and known him for a long time. He has been there and has nice gray hair i want friends with his wife, do you want to go there . I am making a point that appearances is important to some of our leaders what are you talking about . I am not talking about much of everything. You look like John Garfield he was very left wing. I dont know if you ever look into it. I have always felt that you between pena and John Garfield it is a done deal i suppose i am a deskt doppleganger i am more churchill all right, when we come back, we got a lot more from this man so well have a lot more from the markets where investors should be putting their money and keeping their money and taking their money from, lets take another look for futures, it is moving all over the place here we are off the lows of the Early Morning but setting off for what would be a far lower open. We got a lot more squawk on the street right here when we come back we have a question about your brokerage fees. Fees . What did you have in mind . I dont know. 4. 95 per trade . Uhhh and i was wondering if your brokerage offers some sort of guarantee . Guarantee . Where we can get our fees and commissions back if were not happy. So can you offer me what schwab is offering . Whats with all the questions . Ask your broker if theyre offering 4. 95 online equity trades and a satisfaction guarantee. If you dont like their answer, ask again at schwab. An Exchange Trade security is supposed to be back this is a complex story involving a traded notes to be and this one, the bank promises the return of the under lining index and in these cases you are talking about people who are betting on low volatility. They were short volatility thank you meaning up and down. Correct and a lot of people have been playing volatilities some are waiting for it to come back and the way to do it is through many of these efs. People thought theyre making money month after month and thinking it is a safeway to make money. What i am reading here is the value of xiv on february 5th was equal to or less than Credit Suisse is the sponsor of etn right jim, what they had the ability to do here apparently were termination events which the funds must liquidate that appears to be happening here amazing because volatility moved yesterday. Right in laeaps and bounds. You had to change and settle this so to speak at 4 00 so it caused the thing to be wor worthless. This will spill over into the s p 500 market yep what will happen is the s p will be down some what mechanically far more than it should be. Which is why i said pick a couple of stocks if you notice, look at gm. The numbers were good and the stock is up. Micron announced the better number and the stocks are up so that maybe what the market looks like without the pressure that comes on the s p from the xiv. We are talking about what 2. 5 billion totaled from the two of them. Yes, they approve things. The government approves them i know there is one hedge fund but there is no reason to inflict pain on that there is some funds that blew u on this and there is a spill over that wont hurt you own this thing and you are hurting a lot. Well, you are, in fact, and credit sweep by the way was well define on this i have not heard from them we have not heard from them yet, i dont believe. Specific to this, the acceleration date, on february 21st, which is three business days, you are going to get back a cash payment for etm and closing of indicative value on the accelerated valuation date this is not etf accelerated means we are done exactly the other side of that is automatic, there is a formula that says that you have to sell stocks which means the s p 500 and it has to be done at the opening. Lets take the kacase of amazon the price targets all went up big. The stock is well below where it was reported if you are saying i want to be in amazon and take advantage of it theoretically, this would be the moment to do it. We have to go back to the fundamental idea, should the market be down it is certainly possible the market has been up a great deal the power ball, it is being repealed should it be down this fast . No, because of what you just talked about a piece of paper that no one ever heard of it thats a billion and a half dollar. And during the violent move we see Collateral Damage on this is there a big take away on this the take away is once again how many people read the perspective . I am sure most of them did not. But, the problem, david, is in the end when you are this over sold, you have to step up and take the risk but, my problem is david, if you are an investor and you just got in the market and you finally felt safe and you forgot 2008. The asking class is too fragile for people it is why so many people went into treasury serving nothing. They said how can i trust this i feel badly because we always forget, why do people leave stocks well, because of this nonsense how sensitive these instruments are. No one can understand the act of god cause of the xiv someone put this together. The sec blasted. If you go back when they did double and triple, they thought the market was so deep that they could not impact the s p that was wrong go back to the original etf you will see how incorrect they were it is hard for the government to say, you know what, we made a mistake. The closing value on this thing was 108. 36 on february 2nd all i can say is so long sucker well count down on the opening bell and jims mad dash. We are eight minutes away from an important opening here on wall street you can see everything is well in the red more squawk on the street from the nystigc raht ahead [ click, keyboard clacking ] [ keyboard clacking ] [ click, keyboard clacking ] good questions lead to good answers. Our advisors can help you find both. Talk to one today and see why were bullish on the future. Yours. Talk to one today and see why were bullish on the future. Gglobal bonds, and highdividend strategies. Sure, these are investments. But theyre not what people really invest in. What people really invest in, is what they hope to get out of life. But helping them get there takes a pure focus. Because when you invest their money without distraction, hidden agenda or competing interests, Something Wonderful can happen. They might just get what they want out of life, and maybe even more. All right, a little bit more than five minutes before we get to the opening bell. Time for mad dash. We want to stay here, we want to talk about nvidia. What are you mad dashing it . A lot of people dont understand nvidia is a company that has a market capped worth of 120 billion it is important, why because it is big. It is the hottest stock in the last two year of the s p 500 thirds it reports on thursday. There is a lot of money in it. People are saying that can be the coil springs that reignite the markets. The next thing you know it went down to 180 if you are looking at nvidia and you want to play so to speak and even in a blow out quarter, it got hit. People want to buy something ahead of a quarter i say be careful even when you are right, you can lose money and nvidia. Well, he position that company. Allan iverson sorry, i meant intelligence. Machine learning and crypto counter currency i would say jp morgan it is up so much and it has not come down much again, i want to remind people that the only time it exceeded that in the last three years have been phenomenal buying opportunity they did not actually happen that moment. That could be this time. The xiv and the pressure is going to put at the opening. Be ware the xpx at the opening should be paid for there are margin calls that happen later karen cramers old rule and you have to wait for it. Any sense to what happened yesterday to explain we were here yesterday and you were, of course you were not here because you were still in your state of euphoria, not in the morning with me and carl we watched the s p 500 get back to flat and actually be up how funny was that . That was people backing away from the margin call and sellers came back. A couple hedge funds blew up yet people want to say what was the Federal Reserve and some people want to say it is the tax reform i suggest those are ridiculous because to say at 240. It is 347 this morning when the s p 500 blew up, was that tax reform no, you are not talking about a lot of volume there. It is a bit different than what took place yesterday around 2 00, it starts to plummet i would urge people that it will bounce back to first. Should it be retailer, domest s domestics . Employers cause a lot d a lof problems well, wages thats better trying to buy the housing stocks thats the worst performer now this year. They went up to most and that makes sense. People think that Mortgage Rates are going to go up i like retailers because they are finally cooling off. I dont like people to chase if you are going to commit capital. Please dont commit all the capital but it may be a good moment the other one is the aerospace investment the what aerospace the velocity. Amazon is hard because it was the best quarter of 2018 yes that was really an amazing quarter and i dont think you would get it at discount the parabolic move was distorted of what happened last night and last weeks trend. Ken fisher had some great point. You may not see this there is a robot up there, i want you to pick it out for me if we can get it there is the opening bell well have a lot of red on the board. You are at the big board robots, do you see her there shes kind of moving her head slowly back and forth. Wow, hasta la vista baby. Freaking me out all right, we are under way, jim. Well, you know, it is distorted and i dont want people to i want people to realize that the Asset Classes is not certainly broken. We went up too fast and we went down faster. So you know i can look at individual stocks and narrate the tape disney should be down, too facebook is down 10 from where it was i can play that game if you want me to. I would rather spend a lot more time thinking, the market is a concept is not as good as the individual companies and their stocks they do diverge at this moment. Interestingly they accelerated and buy back they have the most cash yes, it is a percentage of their market value it is no longer an issue because it is being repatriated. Lets talk about sky work solution they had a pretty good quarter certainly better than apple. They make parts for cell phones for all different cell phones. Very good quarterly and griffin delivers a really kind of classic great job. Yep the stock is up 7 should it be up 7 . I dont know the guys that are buying it, they should step back. It could be 2 or 3 micron made a Statement Last night that shows you what the market could be like if it were not for the s p 500 pressure if you want to know at pressure. Look at allegan did reported on a better quarter it does matter that thing has been a permanent recli decline. It does feel like allegan has been on a decline. We dont have to worry about invergence anymore it will most likely change the behavior of u. S. Corpo