I see Energy Leading the way welcome just like tyler said, tech is lagging the Broader Market right now. You can look across the sector board behind me. Financials down only 1. 3 . Look at technology its the worst performer down 5. 6 today even as the nasdaq hit a record high yesterday, its not just the big cap tech stocks selling off. The momentum names have been struggling for a lot of this week already take a look at zoom. The stock is up nearly 500 this year the this amounting to a pretty big pause. Same story with tesla. Its down 18 . Finally docusign is down about 10 . About 8 today 10 in two days and it reports earnings after the bell. Well have more on that in a moment first, lets get to bob for more on this market sell off today. Bob. Youre right, kelly this is largely momentum driven. Not external news events around the economy or vaccines like that the news has been positive let me show you the momentum etf. These are the Largest Holdings in the momentum etf. Look at stuff that has really heavy volume over 200 normal volume with sock of these tech etfs. Look at the triple qs. The tech spiders these are volumes north of 200 . All have much, much higher than normal volume. 200 or more on a daily basis. Were still in the middle of the day. Look at stuff that has not so heavy volume come pappared to w Everything Else is doing this is one of the things that my friend talks about. This is very rare occurrence almost never gets close to 20 the last time was 2018 in the middle of january. We had a correction back then. You see it there does it go on for a dup l more days t not clear right now all the major indexes on track for their worst day plummeting from record highs they hit just yesterday. Lets bring in brynn welcome to you both. Brynn, is this the beginning of the end of this market rally or the end of the beginning tongue quetwister to start i all. No i think this is a healthy pull back tesla, zoom up 230 and nvidia up about 150 prior to today i think this is a reminder that gra gravity not only exists in nature but the stock market fp nasdaq needs to have a good 10 to 15 plus percent retracement i think some of these high flyers like tesla and zoom will have more. I think that rotation will go right back into these growth names because once again, this is where youll find growth. I think its just the price of admission for owning equities and every one needs to just buckle up and ride it out. I guess we all find ourselves a little bit surprised that today is the day we see this first cascade in stock prices but earlier in the week, we started to see some erosion in some of those momentum names i think theres some discipline going on in the markets and some sell off which is profit taking some of the insiders were selling their own stock. Some of the investors are doing some same taking some profits. It could signal the beginning of a rotation into other areas of the market were encouraging investors to diversify and look at those areas that have not run up as much as that large cap momentum trade has run up areas like your mid cap, small caps you do not say specifically value, which has been one of the debates but youre also interested in fjs and industrials. Definitely. Today were seeing some of those leading the way. It may not happen before the election but probably after the election when it comes to value names, though, it is an area to look at you look at the disparity between like large cap growth and small cap value, huge disparity in returns here to date for those investors looking for opportunities and felt like the other areas had run up, they could see values in the long run, i think the market tends to look at profits. Companies that have growing profits, growing revenues are the place to be and is there any reason to believe that place is not going to be in technology, in semiconductors, in telecommunications and Communication Services sure. Youre going to get growth there. I think every one knows that is where the growth and the innovation is coming what price will the market pay right now, today, we have a risk off sentiment shift. When i take a step back and look at industries out there, i think it will be more prone to rent value. Some of the financials are rent, energy and own long term growth. I do think when i go back and say the financials are cheap, what is going to cause multiple expansion when powell has said time and time again theyre not going to even start thinking about rates for years from now i think you need higher sustained rates to get a lot of the value names. I dont see that long term i would maybe rent those names but long term we want to stay in growth where we think there can be some good multiple expansion. In its a good point. We had aen unprecedented year with the speed and the markets in march and the speed up in the markets. In a sense we got ahead of ourselves and today its a breather an opportunity for investors to cool off a little bit. They can say where do we go from here theyre looking to take the cash they require through stock prices increasing, what are they going to do with that money . Theyre probably going to acquire other companies. There can be a ben fits if youre invested in those smaller and mid cap tech names that could be bought by the larger companies. Okay. Thank you both today sharing thoughts about the sell off which has picked up some pace. Markets are pretty weak across the board. Tech is leading the way. Take a look at the chip stops. Josh is here for more. Josh kelly, the semis have been soaring but not today. Check out the smh. Thats the etf that tracks the sector, the chips. Its now on pace for its worst day since june some of the hardest hit. High flyers that have a lot of fans like nvidia as well as amd and sky rocks and corevo some of this could be due to si sienna a company that built optical components the smh is still up about 80 . Stacy says there is evidence that demand might have been pulled forward as customers look to secure products when they could. Back the you all josh, i also want to ask about apple given its now having it worst day since march. Any thoughts there pull up that chart too. Youre right apple is under pressure here it is having its worst day, at least right now since march. Like the semis, again, got to remember the context here. The stock has been on a remarkable run even now with the sell off its still up about 130 over the past 12 months more than 60 this year. I think catch up with gene munster. He has the fundamental question is the same. What is 5g iphone demand looks like he says demand would be weaker than some investors suspect. Back to you. Coming up, well have more on the major sell off as the stocks are wiping out. Stocks are wiping out the weeks gains so far all three averages are lower on the week on track to snap a fiveweek win streak tesla in turmoil that stock down 18 in the past three days top anl alyst who says the stock is heading lower will join us after this quick break [narrator] at Southern New Hampshire university, were committed to making college more affordable. Thats why were keeping our tuition the same through the year 2021. [student] i knew snhu was the place for me when i saw how affordable it was. [narrator] find your degree at snhu. Edu. A lot goes through your mind. With fidelity wealth management, your dedicated adviser can give you straightforward advice and tailored recommendations. Thats the clarity you get with fidelity wealth management. And tailored recommendations. Our Retirement Plan with voya gives us confidence. So we can spend a bit today, knowing were prepared for tomorrow. Wow, do you think you overdid it maybe . Overdid what . Well planned, well invested, well protected. Voya. Be confident to and through retirement. The stock did open above 0 500 share on tuesday after its split and is down 17 since then lets bring in phil for more theres no specific reason for this sell off. Generally speaking when you look at tesla, its down with the rest of the market there hasnt been a catalyst somebody rang the bell and say lets start selling the stock off. If you look at this over the last month, go back to august 11th thats the v, if youll call it there, its up 40 since then. Theyre down with tesla today. Yet we still had another speck that was announced today this one is quantom scape. Its a 10yearold company they are developing long range ev batteries they have some long time investors including bill gates, voek s wa voeks wagon. Its supposed to start trading in the fourth quarter. All right thank you very much. Kelly. After a monster run, are shares of tesla about to come back to earth . Craig m craig, thats well below where reare now. Why a neutral . The neutral rating is because we expect elon musk to have announcements that continue to surprise investors to the upside what we have identified ffr peop for people is the entry market the mini car which could be even more important a great opportunity to sell that theres good potential to make his numbers and continue to see decent growth. Not a great name to be short here you kind of discuss the price target it kind of sums up the whole story for tesla is theres a lot of really positive fundamental factors at play and yet you think the stock price is too high how do you come down to the valuation that youre at we have Something Like 400 evs that will get on the road by 2025 people have been tradieating tea like it operates in vacuuvacuum they dont have any magic sauce. They dont have Battery Technology that other people do not have youll see real competition. Theres been a lot of duds out of detroit and european automotive oems. Youre seeing a lot of specks come to the market people are putting a ball dollars in his hands to get out there and get it done right and several others i would say the catalyst in the sector from a trading standpoint has really been the negative catalyst its been the betting odds and books for an r versus a d in the white house. People were putting on trades for one outcome over the other really its a couple of things here as far as the nasdaq and the negative momentum in is tech t sector of people hoping for more generous subsidied Going Forward. Let me make sure im understanding. The stock trades at 4. 10 your price is what . 150 youre saying twothirds of the value of this company is going to go bluey by when . You have a company thats not going to produce have a million vehicles this year they said they will have a hard time producing 500,000 vehicles that has been valued similarly to the sum of the entire automotive sector. Something like 40 million vehicles that makes no sense. This is company that will have real competition both on the Technology Side as far as autonomous driving and as far as the different Vehicle Platforms and options being presented to consumers. They are already losing market share in europe. You know, people have been just too aggressively positive. Its been a momentum trade i think its not really a great place for someone to belong. It has proven to be very tricky to be short. I want to ask you, i want to go back to something you said about the competition thats coming for tesla which is why you have a lower stock price with 400 electric vehicles on the road by 2025 you said they have no better battery tech is that true seems like the market is trying to catch upd and th and they arn hard they are working on the million mile battery we have big battery day coming up when we might get some of these announcements. Theres the former employee who is working on Battery Initiative to maybe recycle some of these metals to keep their hands on supply Going Forward are they not one of the leaders in battery tech . They do invest very heavily theres no question about that the core of their technology came from panasonic. Its the worlds best in electr electric chemistry theres many Good Companies out there p i encourage people to do that the reality is they dont have anything that nobody else has. That is a very, very important thing to say max well technologies that they bought, the battery electric stuff is a dud the stuff out of maryland is much more interesting. Theyre adopting for Difference Technology solutions tesla may have a big factory but theyre not the only one its not like semiconductors where the size of your factory determines your cost in batteries, your material costs determine your costs it comes down to how much juice are you getting in the can and whats your cost of materials. They have no fundamental advantage on materials cost. They are doing a great job on produce whag they neing who the. They make great cards. Theres no fundamental advantage tesla has over batteries over any global producers they will have their case in about 19 days to say why they are superior thanks so much for now we appreciate it ty we got our eye ons this big market sell off. The dow up about 840 points. The s p off 3. 6 here is a look at whats leading us lower now its basig tech stocks apple, sales force, microsoft are down roughly 6 and a couple of cases for home depot 4 or so docusign getting crushed in todays session as it gears up for earnings after the bell. Well have details on that more on the sell off and more on the markets after this with fidelity wealth management, your dedicated adviser can give you straightforward advice and tailored recommendations. Thats the clarity you get with fidelity wealth management. A lot goes through your mind. With fidelity wealth management, your dedicated adviser can give you straightforward advice and tailored recommendations. Thats the clarity you get with fidelity wealth management. Welcome back dow is at new session lows as were about 90 minutes away from closing bell no particular catalyst for the sell off i know many have been watching the see if we fall through a trap door with the trading action to open up the way for deeper sell off. Well continue to keep an eye o it the nasdaq is still the worst performer in terms of percentage theres the heat map all 500 names of the s p as you can see, fraction of them, less than 10 are even green today. Some of names that have been in the green are geared more toward the reopening. Thats right. Theres a few groups that work from home or momentum stocks that are sinking today keep in mind as i go through them its very ugly today but they have run up huge this year. For now, todays pull back is a drop in the bucket first take a look at ecommerce shares these are names that have benefitted as consumers shop online you see etsy wayfair has been one of the biggest winners. Shop sdw shopify and amazon have participated in that momentum rally. Take a look at recent ipos that have benefitted in their early time as Public Companies from this momentum trade. They are all selling off today take a look at big commerce down more than 15 . They are still trading well boabove their ipo prices look at the Software Trend these are the darling of the work from home trade zoom video some are saying that zoom video may have ruined it for the rest of these names because its earnings earlier this week, those results were so above expectations how in the world can some of these other Software Names live up to them they are selling off today remember zoom video was up 40 in one session earlier this week kelly and tyler, these names getting hit today but to put it in perspective, they are well up on the year. The question is, does this continue to fall or is this sort of a much needed breather given their run offs the complicating factor is they do have a lot of fundamental stories. You wonder how much of that demand was pulled forward and priced in. Absolutely. Great fundamentals particularly if you think that Remote Learning or remote work is, these habits are here to stay. Youve heard a lot of chatter about the valuations getting extremely frothy we were looking at them earlier in the week. Zoom video about twice its other Software Cloud pierce. They are getting very frothy will they justify this kind of return a few years from now . The revenue outlooks well find out tonight with docusign its been another one of these big winners. Expectations are high because of that run up when it reports later tonight. It has some big shoes to fill and as you can see, docusign ahead of those earnings. I find it so satisfying to use when i click the initial here and sign here i love it. Thank you. Tough session for them today well see what their earnings say. Lets get over to seema for trading nation. Highlighting one of the work from home plays. Thats docusign still up big this year and now at a market cap of 345 billion. Earnings are out after the bell. Not a great sign to see docusign down 8 ahead of its report card after the bell i bet they are wishing they released on monday when zoom did. They are one of the champs of the work from home environment everybody has used their process. Im going through a closing process. Im first hand testimony to their Software Companies include comcast, Small Business administration. Its ridiculous, absolutely insane valuation its a question of whether the market will feel kind enough to take it up if they come in line, that sets us up for a much bigger decline on the short term. This is a trend that will stay with us past covid its very boring but very necessary space. They are dominating that space i really like it long term theres no doubt it could be very turbulent over the near term lot of Growth Drivers we saw that in zooms report earlier this week. When you size up the chart, any reasons to be cautious here when looking at docusign . I would state it as innocent until proven guilty. You can see the long term up trend is very much in tact all we have a correction back to an area support, back to the up trend support. Back to the rising 50day moving average. I would say is the Growth Investors are even though the stock is expensive will probably be buying the stock on these pull backs to the up trend support line if that breaks, now youre see names like more concerning from a technical perspective. Right now that hasnt happened you still continue to play this along until you get a trend break. Got it. Report out tienonight it will be an interesting one to watch. Kelly and tyler. Back to you. Thank you very much. Still ahead, we track the sell off as it deepens. You can see the nasdaq 100 laggards ranked by the