Well in many states. Businesses are holding back from spending amid the pandemic and stimulus talks appear to be at a standstill once again with leaders from both sides accusing one another of moving the goal posts in the negotiations. Unlikely we will get a stimulus before the election. 59 minutes to go, dow down 2. 2 . Lets get to the stories we are watching right now as stocks fall sharply mike santoli is tracking the market selloff for us. Which parts he is watching in particular meg tirrell digging into the latest covid numbers mike, whats the broader take on what is happening today average bit of a rethink on a mull pent fronts the idea that covid might cause more business disruption last week the s p 500 was skirting this boundary between this sort of breakout level we had and around 3,400 we are actually below that right now. Did a little bit of damage s p and the nasdaq fell below the 50day average the s. A. P. Warning probably evented the nasdaq from doing a better job of supporting the rest of the market i think it is going to have to regroup. Also, this move caught investors a little bit standing on the wrong foot when it came to bond. If you look at the comparison between s p 500 and long term tress res, the tlt etf come into today you see the trend recently was stocks up, bonds down in price, therefore bond yields going up for a while they were basically neckandneck this morning on a one year basis just todays action has put the bond back ahead. I dont think it necessarily unwinds all of the embedded economic enthusiasm that was in the treasury market and the steepening yield curve and all that stuff but it raises a question whether we are seeing another one of these, that was a dramatic low in the tlt in early june, a speak in yields, and a shortterm top in the s p 500 as well at the moment we still havent even unwound all of octobers gains let alone go back to the lows in september for the stock market that would have been closer to 3,200 on the s p 500 look at the leading subsectors that got us up to these near record levels. They have all had a roll overlook to them cloud computing. That also made a peak recently Home Builders, not so great in home data and semis. You have this sense out there that the Leadership Groups were tired, they were slipping a little bit then the macro story has been widely embraced that we are either going to get fiscal stimulus sooner or later and, et cetera going to help the recovering economy it is a rethink. One last point last week Investor Sentiment was leaning into the idea of a Fourth Quarter rally and almost any election result would be a positive i thinks that move back to something more neutral as opposed to everybody assuming all the outcomes are going to be great. If you look at which stocks, groups of stocks are performing the best for the month of october so far, autos up 20 airlines, the financials. Yeah . It tells you a cyclical story of an economy thats improving. It does is that up for debate is that a question mark . I dont think it is its certainly up for debate in terms of how far we can carry that of course they are coming off of some lows in september i do think we have to keep in mind, you know, honor the message of the market while also recalling that, again, back in june all those things were flying, yields made new highs, tenyear above. 9 we reversed lower. We got the sun belt covid surge and in general it didnt seem like the economy was going to immediately ratify those moves i dont think we are done. Maybe we get fiscal help down the road but at the moment it seems there was an imball an in terms of immediate expectation what was the economy can deliver. And Fourth Quarter earnings havent gone up very much in terms of forecast even though earnings have been beating really well on Third Quarter. Mike thanks down 2. 2 on the s p. Software company s. A. P. Is shedding tens of billions of dollars of market cap on the back of Third Quarter rolts. Josh lip ton has more. Reporter the German Software maker announced q 3 results. The stock was hammer giving up five months of gains on track for its worst day ever i talked with an analyst who covers the name. He said s. A. P. Assumed the pandemic would ease, consumers would feel more confident, start spending more confidently again. Instead new lockdown inside europe in response to covid19 infection is how bringing uncertain. Corporate customers are tightening their budgets bottom line, s. A. P. Cut its outlook on earnings and wretch for the entire year. Whats the regroup for other Software Names stapless brand says he views s. A. P. s challenge as more Company Specific for example, challenges with certain products getting traction and momentum. His checks point to what he calls a solid September Quarter close from many of the Software Names in his universe with deal pipelines progressing as expected maintains a buy on service now, sayersphores and microsoft which remember is scheduled to report results tomorrow after the close. Back to you all. Josh, thats sort of what i was going to ask you, which is how much of this is a specific s. A. P. Story i think this is their second time they have warned on guidance and they have had some stumbles versus, say, salesphores, which is killing it. Or is this really a macro warning shot that should affect everyone because they have such a good read on business spending how do you read it which one . I think thats the debate investors are having right now when s. A. P. Came out and gave these results, a big disapoint by investors, by the street. Some did try to extrapolate what that meant for other Software Names. You saw the Software Space move learner. However another analyst will argue his checks indicate this is a s. A. P. Specific challenge we will get a date point when microsoft reports tomorrow investors will be curious about guidance are they spending now, investing comfortly and strongly are they hesitating because of economic turbulence . Those results tomorrow after the close. Good ease for closing bell tomorrow josh lip ton thank you. Urning now to the coronavirus. Cases are liesing in the u. S. And in europe with the United States setting a record high for average daily new cases over the past seven days of more than 68,000 lets go straight to meg tirrell for more context on the numbers. Sara, we are seeing the record in new daily case numbers, the sevenday average, almost 70,000. We are also seeing hospitalizations rise and now after a bit of a delay deaths, new dily deaths are rising as well there is currently more than 41,000 people hospitalized in the United States. In terms of where we are seeing the fastest spread in the country, the hot spots, as measured by case doubling time, from ever corps isi, el paso, mobile, alabama, jefferson city, missouri, and oshkosh wisconsin. As we are seeing more and more people going into the hospitals concerns are rising about their capacity to really treat all of these people the Salt Lake Tribune yesterday in a headline that caught a lot of attention saying utahs hospitals are preparing to ration care as aRecord Number of coronavirus patients tlood their icus, they can add more beds, create field hospitals but they cant add more doctors and nurses trained in taking care of the critical patients. Meanwhile n the vaccine race, astrazeneca saying their vaccine appeared to work as well in older patients as younger adults in terms of the immune results and the immediate side effects of the vaccine, they say thats building the body of evidence for the vaccine. Of course we are waiting for phase three data which we expect the see potentially by the ep of this year. This week we could potentially get data from pfizer meg, when we see the data here in the u. S. Picking up versus what we have seen in europe over the last couple of months have european officials imposed lockdowns per case per 100,000 people or is it their data is worse and they are a month or so ahead what have we are seeing in the u. S. Certainly they do seem be the ahead of us temperly they ten to see spikes before we do on a per capita basis they were doing worse than us as of last wee. You do see stringent measures taken by governments there in terms of the United States it is a Regional Response we are hearing about different measures being taken in different parts of the country now a National Mask mandate being recommended. But in terms of the national lockdown, not hearing talks about that so much in the u. S. I think it depends on the hospital system, right, meg . I mean that was the reason for the lockdown to begin with, whether hospitals get overwhelmed and full but the u. S. Is a big country. Hospitals can get overwhelmed and full in one place and not necessarily be somewhere else. When we are talking about regional responds thats typically what Public Health experts are recommending look at what is happening in your community and respond appropriate appropriately, but it is a huge country. So what is happening in new york is very different from what is happening in wisconsin. Meg, thank you. A big sell off on wall street, do you is down 777 points we were down 965 at the low. After the break, funds trust tom lee tell us whether he sees this as a pullback as a buying opportunity. We will also talk about the stimulus negotiations and much more you are catching closing bell here on cnbc you can go your own way go your own way your wireless. Your rules. Only Xfinity Mobile lets you choose shared data, unlimited or a mix of each. And switch anytime so you only pay for the data you need. Switch and save up to 400 a year on your wireless bill. With the carrier rated 1 in customer satisfaction. Call, click, or visit your local xfinity store today. Big down day on wall street. 45 minutes of trade. The dow having its worst day since june, off almost 800 points 30 out of 30 dow stocks are lower. Our next guest says he is buying the down you are optimism and bullishness have stood out this entire crisis and you have been right when it comes to buying the dip when it comes to march lows. Why are you still optimistic and bullish . We have had a lot of tape bombs today. I think its understandable that markets are nervous heading into election day and covid cases are rise asking we didnt get the fiscal stimulus. I think besides the shortterm setbacks i think the setup over the next six to 12 months is really constructive because we have an economy thats in the early stages of a recovery there is a ton of cash still on the sid liens by investors from a credit perspective, i think the credit perspective is still good Interest Rates are still at levels that are good for businesses and it looks like from both a Investment Grade and high yield perspective defaults are actually improving if you have a positive credit backdrop, a recovering economy and lots of cash on the side lines i think once we get through the sort of choppy one or two weeks there is big upside in equities. But isnt the concern, tom, that it could be more than a few weeks . We are looking at a really strong uptick in cases both in europe, which is already starting to see lockdowns returning and in the United States, which even if we dont have the political appetite for lockdowns and we start to see it regionally, dont you think it will have an impact on Consumer Behavior and ultimately the recovery, which was already pretty uneven . Yeah, i think people need to take covid seriously it is super contagious hospitalizations are picking up. I think we are at the point now where in the states remember, there is really 22 states where this is near alltime highs. They are already starting to see reaction, mask compliance improving and curb iing going o. If you look at the northeast, florida, california, texas, cases are picking up, but they are not surging. I think we have got consumers that understand what they need to do. And thats good. Im not trying to be dismissive of coronavirus because i think it is quite dangerous, but i think in the u. S. Hospitalizations and deaths have been a lot lower compared to the other waves. I think thats one reason why it is still not too late for actions to actually have good results. Tom, i get the bullish case on a 12month outlook if we get fiscal stimulus f we get a vaccine and still have loose Monetary Policy. What about the shortterm . What about 70,000 new cases per day, no stimulus and a delayed or contested election result all play out for the next week or two . What level of short term downside could we see . Cases are wilfred, you are right, i think cases are going to pick up i mean they could hit 100,000 pretty soon. But the rate of hospitalization is still around 1 , which is one fourth of where it was in the summer and like 1 13th where it was in the first wave so i think we are going to start to at least be more sensitive to more hospitalization utilization. As long as those stay muted, i think we are okay. You are right there are other stresses in the next couple of weeks because we have an election where the outcome may not be decided although polling seems to be solidifying here i know market dont like uncertainty but at the end of the day if we are talking about volatility for a twoweek period and investors want the think about six to 12 months what they really have to think about is where are good entry points . Today with the market down nearly 1,000 points and a surging vix, these are usually the levels that you think would make sense to start putting some risk on it into your portfolio where specifically, tom if you look at where the most pain is being felt today, its a lot of the recovery plays, airlines, hotels, they are getting beat up. Also some of the stimulussentive sectors, consumer finance, credit card companies. Which entry points do you like the best, for which industries yeah, i mean the hardest hit today are the epicenter groups, the cyclecally sensitive, whether it is cruiselines or casinos. And i understand why people are like i have got to get out of these things for the next two weeks because covid is rising. But plip this around these are businesses that have flip this around these are businesses that have really good long term relationships with their customers. Franchises, their credit line has been holding up. Thats where the best opportunities are going to be, whatever people are dumping on the risk off day, these are what people are going to be buying when the upturn returns. I think with a 1,000 point down day it is a good time to add some risk. How closely are you watching the long end of the yield curve for what it imply about the recovering economy and also sectors like the banks i mean, its actually its been a welcome snlg signal to see long term rates rising at the long end it doesnt signal that people think there is rising defaults in the u. S. Economy or u. S. Government it is reflecting inflation measures, better growth, and all three of those are in the right levels for risk assets. A rise in the long end is actually quite welcome. Tom lee, always a pleasure. Thank you for joining us. Thanks for having me. We are down 760 points, 2. 7 on the dow with 40 minutes left in the session after the break, travel stocks getting slammed in todays sale amid fears of rising coniroravus cases. We will walk you through some of the biggest movers thats next. Our Retirement Plan with voya gives us confidence. Yeah, they help us with achievable steps along the way. So we can spend a bit now, knowing were prepared for the future. Surprise we renovated the guest room, so you can live with us. Oooh, well. Im good at my condo. Oh. I love her condo. Nana throws the best parties. Well planned, well invested, well protected. Voya. Be confident to and through retirement. 37 minutes left to go. Lets check in on some individual Market Movers amid the selloff. Dow down 737 right now dunkin held preliminary deal talks with inspire brands. It could take dunkin private at 106. 50 per share inspire is the owner of arbys sonic and Buffalo Wild Wings the stock is up 15 almost reaching the premium. Hasbro falling after reporting earnings the toy company posting a earnings beat but weaker sales in tv film and entertainment vision that stock beat up today, almost 9 . Toys remained pretty strong as woe learned from matels report last week as well. Also beat up today, travel stocks, falling sharply, coronavirus cases soaring of course playing into that seema mody has a look into that. Reporter a countdown to the no sale order for cruiselines lifting this saturday. Suntrust analyst patrick shoal says a biden win would be seen as a negative for cruise stocks. He believes that biden will be more likely to follow the cdc guidance when it comes to health matters. Remember a month ago, Vice President pence reportedly overrode the cdcs decision for cruises to be restricted until at least february. Now shoals says thats less likely to happen under a Biden Administration outside of cruises, hotels and booking operators, which are all reporting next week r trading down by as much as 6 as europe imposes these new restrictions that could certainly dent demand for travel sara, back to you. Payment stocks are also under heavy pressure today American Express among the biggest losers in the secretarier right now. Kate mooney has more on that space. Sara, investors fearing an increase in covid cases and a lack of stimulus could hit Consumer Spending which of course is not great for the Payments Companies look at amex the city council down almost 5 . They did report earnings last week with a steep drop in travel and entertainment profit was also down 40 year over year look at visa and mastercard as well down 3 today. Those Compa