Transcripts For CNBC Closing Bell 20141007 : comparemela.com

price of oil today, wti crude well below $90 a barrel and sort of a line in the sand. we are at $88.78. we were at $87 and change moments ago. >> consistent with that, let's put up the u.s. 10-year interest rates. dropping. we're looking at 2.35%. pretty much a straight line down mirroring what we're seeing as you mentioned in oil and stocks. it might be a classic risk-off kind of day and we have the panel to talk about and a new warning on housing market. is a triple dip? some see it hitting a speed bump. find out who's saying that and could mean for the market and the economy. >> big day here for the cnbc next 25. three top candidates for that very exclusive list will be with us today. melody hobson, anne wojcicki and kal cole with us. they will be with us today on "closing bell." >> yes. a lot coming up. markets, as bill mentioned, pretty much the lows of the session. dow off 200. 1% today. the nasdaq losing 50 points. s&p off by about 20. russell 2000, art cashi this morning on show yesterday we should say told us watch the 1090 level and 1082 where we're hanging. >> a lot to get to in the closing bell exchange. tom essa back with us. john manly. chad morganlander. danielle hughes. and our own rick santelli joining us, as well. john, we were talking before and i said to you, you know, the market's shouting these days and listening to it and hearing it. when's the market telling you right now? >> a lot of things. i'm amazed how frightening it is less than 4% off the all-time high. the technicals look awful. no question. the market's narrow and seems to be narrower. fundamentals is fine. >> is that not a selloff? >> i don't have the evidence yet. i think it's more technical. a whiff of 1984. that was inflation. this may be deflation and didn't amount to that much at the end of the day. >> danny hughes, what about you? what do you take from the market? inflation? groebl growth? >> it's a weird dichotomy right now, kelly. we have out of germany the biggest economy in the eu, let's face it, and numbers off frequently. 4% reduction in industrial output on the heels of yesterday's new manufacturing numbers which were abysmal, as well. that concerns us because of what the european economy means to global economy. u.s. economy is chugging away and seeing growth and numbers looking pretty good, kelly. it's remaining to be seen and the market is high ear toppy and seeing that and could have been worse. >> but we're only as good as the company we keep. chad, the imf says european economy will suffer for a few years even as the u.s. economy gets better. so king dollar is still very much in place here, isn't it? >> without a doubt. don't kid yourself. expect that the euro to dollar below 120 in the coming months. look. you have two types of economies. uss growing. roughly a three handle and then europe going into deflationary trend here as well as their economy is growing at a half a percent. fiscal austerity there is a plying some pressure there. with the u.s. here, the markets here look fairly valued. a 5% correction should not be a surprise and over the coming quarters the overall u.s. economy is moving forward. growth within top line revenue base as well as on earnings side will be very good. so expect higher highs and higher lows in the u.s. markets. >> okay, tom. what about you? we talked about some of the challenges in europe at present and we shouldn't overlook the extent to which china slowing is a big part of the drop in commodity prices, deceleration in global growth. what is an investor to do? >> well, i think that's absolutely right. we're sort of hit with a triple whammy here. we see china all of a sudden slows. somewhat unexpectedly. the numbers out of europe have been bad and underappreciated is a wavering by the ecb, at least what markets think about the ecb. we are still not sure if the ecb goes fully through with what we think they need to to stimulate the economy and pushing treasuries up. >> give me a second here. >> you have to be cautious here. >> give me one second, tom. rick, we have breaking news here. dominic chu with a market flash for us. >> bill, kelly, watch when's happening with shares of activist. according to reuters, plans to make a new approach for a takeover of allergen. activist said it could reiterate again its takeover interest as soon as this week. this according to sources, allergen would be open to a possible sale of itself at above $200 per share. again, that according to sources. so again, a reuters report that actavis may make a plan for a takeover possibly within a week and that allergan would be open to a sale of a price tale above dollar 200 according to sources familiar, a reuters report. we'll watch the shares, spiking up toward session highs up by 2% on the session. back over to you guys. >> dom, thank you. but again, trading $187. reminds me of what time warner did rebuffing and saying we can get the shares or only consider offers above $100 and a lot of companies, dom, takeover targets in the market and feel the confidence with the way the stock market behaving or a recovery despite the concerns listing. they feel like they can say, no, here's the price. >> we are talking about a market that's let's not forget just a stone's throw away from record highs. talking about the takeover offers, there might be a sense that you can get deals done at price premiums, especially if there's interest on both sides to get a deal done. we are not -- we haven't forgotten about the fact that valiant pharmaceuticals and other dynamics of their deal, a lot of different factors coming into with this particular deal especially and as actavis making a deal, you wonder whether or not with a price tag you magnetize the stock prices to go up to the level. when's interesting about this, guys, you will see traders handicapping whether or not this deal gets done at $200 a share. >> right. >> by what the stock price does. if it's $186 right now and it's staying kind of there, you can tell some people may not think that a $200 deal is done and right now that's where the odds are. they're still handicapping it given the headlines, guys. >> dom, thanks. rick, one second. we'll get to you and your comment in a second. john manly, on this, we have seen a pickup of mergers and acquisitions. are you surprised it's this late in the cycle or not? >> i'm always a little surprised but the fed is accommodate. the fed is pushing money at the economy and flows through the capital markets and pops up in all sorts of forms to get in the stock market and not a surprise at all. >> a reflection of valuations or just cheap money out there right now for sure. down 201 points. rick santelli, i mean, with all the moving parts and pieces and moving pretty good today, fixed income or commodities or currencies or stocks, when's the market telling you right now? >> i think on many commodities pa partially the higher dollar. here's oil and it's an extension of the weak outlook on growth in a large part and i think when the guests said why's everybody nervous? 4% from the highs in equities, he is right. the last several years have been a very abnormal equity market because of lack of alternatives. anybody that doesn't think what's going on in europe and lesser extent gentleman opinion and china is a direct fundamental, look at the dollar. change it is die nynamics and multinationals and we have talked about relative value trade f. the southern economies lose control of the managed too low rates on the sovereign paper, that's going to scream inside of all markets worldwide on the credit side. i think what's going on with europe is not only a big fundamental for the u.s. but i think it's a big potential game changer for exactly how much tightening janet yellen does in 2015. >> that's exactly it. a quick follow-up to that. making comments about how it's time for the u.s. economy to normalize. it sounds like from what you're saying and the landscape that fed officials have to be careful that they take global considerations into account here. >> yeah. listen. many believe i'm on the wrong course with that interpretation and only concentrate on the u.s. but we don't live in a single environment. it's a global environment. and as to deflation, you know, i'll tell you what. specifically in europe, especially in europe, any type of inflation is going to be a by-product of growth. and they have no growth. do the math. >> the fed has said they're data dependent an the data has to include the international economy and not looking good right now. if i could see a five box with the guests and running out of time and is anybody looking to invest in europe right now? i mean, are you going to play that contrary play right now, even as the imf is forecasting slower growth in the economy. tom, yes? >> yes. i am. i think that -- >> only yes. >> -- was disappointing but i think that europe to borrow historical quote, the ecb will do the right thing after they try everything else. i think you will see more demand and the abs program much more successfully than people think. i think that you want to be on the side of an ecb trying to stimulate growth and expand their balance sheet. >> there's the out of consensus view for the day. thank you. thank you, everybody, for being here. now with the dow off 211 points and about 50 minutes to go in the session. >> low of the session right there. down 1.25%. pretty much we're seeing that decline across the board. no one average leading to the downside right now. plus, one economist warns of home prices may be heading for a triple dip decline. our diana olick has the details and which parts of the country to see the worst declines. also coming up, the shopping bridge may not steal christmas this year. we'll have results of a new consumer survey. the pros weigh in on which stocks get the boost and conducting, yes, our live poll and tell us your shopping plans this year. also ahead as we mentioned, three candidates of cnbc's next 25 list. top influencers over next quarter century. melody hobson. anne wojcicki and kat cole. i love that woman for what she did. she's president. trust me. anybody that run s cinnabon is doing a great job. we'll be back with more. in a world that's changing faster than ever, we believe outshining the competition tomorrow requires challenging your business inside and out today. at cognizant, we help forward-looking companies run better and run different - to give your customers every reason to keep looking for you. so if you're ready to see opportunities and see them through, we say: let's get to work. because the future belongs to those who challenge the present. you just have to win 70% of your points at net. and keep unforced errors under 10%. on the ibm cloud, the us open analyzes 41 million data points from 8 years of competition to uncover key insights. data can help show you how to win, no matter what business you're in. today there's a new way to work. and it's made with ibm. big selloff day today. in part the imf report this morning on the world economy forecasting slower than expected growth in parts of -- like europe and asia over the next three years even as the u.s. continues to grow. and you saw a lot of foreign selling on the open this morning. but even as europe closed today around 11:30 eastern time, when you would expect maybe the selling to subside, that didn't happen and sitting at the lows right now for the day. >> look at the transports. yesterday, performing better because -- no, worse because oil was better. today, performing better. >> oil if you look tt transports, down almost 2% right now and wti crude well below $90 a barrel. what are they buying? fixed income. treasuries. the yield on the 10-year down to 2.34 today. >> so true. y nbc's next list showcasing the next generation of trailbladers. >> kate kelly is live from "fortune's" most powerful women in business, she has a special guest with her. melody hobson. >> thank you, bill. thank you for joining us. >> i'm excited to be on the list. >> congratulations. i want to talk about your outlook for 25 years. quickly, bill was talking about how we're at the lows of the day at the moment. are we seeing this rotation from stocks into fixed income or other asset classes, as well, under way? >> you have to remember we're the patient investors. we have a turtle as a logo so day-to-day, hour to hour is not our thing. is it a rotation? we don't know. we see nervousness in the market. prevailed for sometime. we'd say that nervousness has been an underpinning throughout this bull run and maybe that's why it's as strong as it is. the market climbs the wall of worry. >> right. i remember back to may david tepper said it's nervous time. your investors are reacting to little dips in the market? >> it's interesting. in the mutual fund business that we have, it is amazing to see how reactive investors are and we're seeing in realtime redemptions at times tied to what's going on in the market and not something i would have expected at this point but a reflection of that nervousness which in some ways is contrarians making us more optimistic. >> you talked in a recent investor letter how activity hadn't percolated to your corner of the market. do you expect to see that and presume that will benefit an investor like you? >> we have been wrong on this. we definitely were right about expecting m&an activity to pick up and it happened this year. the second best year of 2007 ever. supposedly. so we're on track to have a barnburner years but of our stocks and smaller end, we are surprised that we haven't seen more here because in many ways these are the perfect bite-sized acquisitions so we would say that actually gives us a lot of hope going forward, especially when you think about how much corporate cash is out there. >> i think bill has a question. >> yeah. melody, congratulations on the distinction. you know, i know you guys for years and hone to be the patient, value investors out there. i'm curious where you find value at a time when markets are at all-time highs. the fed's talking about raising interest rates some point. that's the next big story to face the world markets here. how do you define value? do you have to readjust that definition here and where do you see that right now? >> well, we certainly don't readjust the definition. our definition of value, we're looking for companies. better selling at a 40% discount in the domestic equity portfolio. we want the discount. we're looking for growth at a reasonable price or relative value or anything like that. we would say, you know, the market always has pockets of value. it depends on where you're looking at any given day, at any given time. >> we're one of the pockets -- where's one of those pockets? >> it is interesting. one of the areas to see on the smaller cap end is energy-related companies, and so, we have had names weak that we have been acquiring shares steadily as they're weak like the bristo, the helicopter company that moves the employees to the rigs. that trades for some reason in tandem with oil prices and nothing to do with it in terms of how their contracts in business works so we're finding some value out there. >> you have said recently there's opportunity with japanese names, right? especially as abe-nomics trickles in. do you see opportunity there? >> it is interesting. the international manager was absolutely excited about japan and she was more excited a few years ago before abe-nomics and the portfolio boosted by the overweight in japan and then pulled back a bit. not as much enthusiasm as there was but finding value there. melody, thank you so much. i understand we have to go. one more? >> a bowtie? i love that. what is that? >> it's a big pin. >> i know. but it's gorgeous. >> hopefully -- >> melody is definitely one of the most fashion forward people at this conference and we have a lot of great dressers. i'm enjoying it. back to you. >> thank you as always for joining us. >> melody, by the way, so inspiring when you talk about trying to do it all, to have it all, to manage the time, we spoke to college students asking her how does she achieve the success? she goes, i get up at 3:00 in the morning. >> we have 24 hours in the day. she uses all 24. that's for sure. see the full list of contenders for the next 25 list at cnbc.com/next. we're heading toward the close with about 38 minutes left in the trading session and the selloff not only continues but intensifies. the dow down 241 points. almost a 1.5% decline right now. up next, not halloween but never soon to talk christmas shopping, right? the pros tell us which stocks could see a hefty boost from the shopping season. steve liesman has a report on how security breaches could affect our online shopping habits still to come here. so ally bank really has no hidden fees on savings accounts? that's right. it's just that i'm worried about you know "hidden things..." ok, why's that? no hidden fees, from the bank where no branches equals great rates. i make a lot of purchases and i get aness. lot in return with ink plus from chase. like 70,000 bonus points when i spent $5,000 in the first 3 months after i opened my account. and i earn 5 times the rewards on internet, phone services and at office supply stores. with ink plus i can choose how to redeem my points. travel, gift cards even cash back. and my rewards points won't expire. so you can make owning a business even more rewarding. ink from chase. so you can. ghave a nice flight!r bag right here. traveling can feel like one big mystery. you're never quite sure what is coming your way. but when you've got an entire company who knows that the most on-time flights are nothing if we can't get your things there too. it's no wonder more people choose delta than any other airline. welcome back. not a pretty day in the markets. dow jones industrial average off 232 right now. some of the stocks with the biggest negative point impact on that are visa, caterpillar, ibm, bill. not the names you want to see taking identity tn chin. >> dom chu, what movers are you finding right now? >> soda stream lower after the company said third quarter revenue below wall street forecasts and those shares you can see there down toward session lows. also a tough day for farm equipment makers after agco cut the sales outlook for the full year again saying it's hit by broad sales declines. you can see all of those names deere included to the downside. general motors to the downside today. cutting the estimates as much as 24%, citing exposure to weakening russian and latin american markets. gm down 6% on the trade. you have got keurig green mountain, gaining coverage after a buy rating and $166 per share price target. you can see there the stock up by 4.5%, 5% and ending with walmart announcing to cut health care benefits for less than 2% of its working force here for worker that is do qualify for the plan, premiums expected to go up by 16%. walmart shares you can see there just about flat today and, of course, that's a real outperformer on a day when the dow is down 1.5%. >> that's good point. dom, thank you. here in the northeast, cold enough yesterday morning the see your breath and must mean the holiday shopping season is quickly approaching. >> is that what that means? >> yes. national retail federation saying sales expected to increase 4 preponderate 1% from a year ago. >> we want the know if you think at home and going to be spending more, less or the same this holiday shopping year compared to last year. you know, vote realtime as we talk about the upcoming holiday shopping season. go to cnbc.com/vote right now and showing the results coming in. let's continue with greg millic and we got dana tulsi. do you agree 4.1% growth? that's the best holiday season in three years. >> i think it's going to be a pretty good season. i don't know about 4% but i think in the 3s and part of the reason why there's newness in product out there. anything active, anything athletic. you have apple. you have autos. there's a reason to spend and now there is also more choice for cheap in a promotional environment. retail will have to be compelling to get the dollars from the consumer. >> greg, who do you like the most going into the holiday season and how well does it typically work to buy these names into this period? >> it's three of the top names are amazon, home depot and advance auto parts and two aren't big holiday stocks, per se but the first point, 4% is reasonable. we say 5% is reasonable number for actual growth wasn't for the tax hikes last year and the affordable care act we should be doing 5. >> will they make any money? how much discounting? they acknowledge that the national retail federation that the consumer's price conscious this season, as well. >> absolutely. gross margins have been under pressure for the bulk of the companies over the last year and we think e-commerce is driving a lot of that. >> dana, your picks are different here. they include tiffany, nike. do you think the retailers traditionally do well when greg sees the share to advance auto parts and home depot? >> we're trying to differentiate the newness. look at the tiffany collection coming out, gaining traction with residents and tourists. the stock overall is a fourth quarter play and the prices aren't too high and position for a better christmas this year than last year. when i think of athletic, that is working. consolidation of usage occasions and the futures orders are good at nike. >> no one has aping on the list. not a contender for the holiday season or for another reason, greg? >> we don't officially cover apple and couldn't be on the list from where i sit but i think the reality is key new electronic products are always hot and to dana's point on our side of retail a newness does matter. you have to have newness or consumers won't spend money on it. it's really about traffic and mind share and that's where we find our favorites right now. >> dana, our poll, viewers admittedly unscientific but it is instructive at the same time. more than half of our viewers say they will spend less this holiday shopping season. i mean, you can read into that whatever you want at this point. >> i think there's more choice for goods at very competitive prices. i think consumers are going to be mindful and the deals are out there. whether it's flash sales, whether it's outlets, off prices, there's a choice. may not buy less units but value for the dollar. >> all right. that would be good. thanks. there's the poll. 55% say less and the rest of them either the same. i think 19 pstz the same. there it is. we have reset it there. thank you both. thank you for your thoughts. >> thank you. >> thank you. what impact is the spade of cyber attacks having on our online shopping habits? >> that is a question for steve liesman. a surprising topic for it, steve. >> yeah. well, when this comes along affecting business, we poll for it. and what we found is cyber fears are on the rise. let me show you the first bit of data here. you can see asking this question last in 2010, you can see a 5-point rise in those saying they're worried a lot about their personal information when they're shopping online and that comes at the expense of those who were pretty cool on the issue back four year s ago when last asked. most worried are those spending a lot on technology. they should know and those with more than $50,000 in stocks. least worried, 65 an greater. maybe less shopping online. an another group that does a lot of online shopping, a curious dichotomy and they feel like they're secure with the different insurance that comes from the credit card companies. now, what about would you use your credit card less? and you can see here. about 30% say, yes, neighborhood stores. more at large retail stores and then even more online because of the recent frauds that were out there from home depot, target, apple. who are the least concerned here? the financial elite. $50,000 of stocks and those with incomes greater than $100,000. people who have college and pt graduate degrees and people in the west and whites and non-whites, non-whites much more concerned about the issue of fraud than whites appear to be. cyber fears on the rise as the holiday season rolling around and find out who was naughty and nice and who was secure. kelly, back the you. >> that's a point. yet another factor to consider when buying into some of these retail names. thank you, steve liesman. as we watch a market off 207 with some economic concerns swirling. bill? all right. up next, a triple dip is a very good thing coming to ice cream as we know but a triple dip in the housing market? not so good. very bad. diana olick explains the expectation. time geithner taking the stand. we'll go live to the white house for the latest developments. stay tuned. dad,thank you mom for said this oftprotecting my future.you. thank you for being my hero and my dad. military families are uniquely thankful for many things, the legacy of usaa auto insurance could be one of them. if you're a current or former military member or their family, get an auto insurance quote and see why 92% of our members plan to stay for life. welcome back. 219 points lower on the dow. we are now about 600 points off the all-time intraday. >> look at the transports. >> off 2% now. >> the price of crude oil in the united states down $1.50 at $87 and change. showing the november contract there. we're getting a different quote here. close enough. >> it does tell you, though, that there are -- >> down almost 2%, as well. >> growth concerns underlying this activity today. interest rates are lower. maybe help the housing market. right now a triple dip for home prices that people are talking about. some are saying that, in fact, it's what's on the horizon. diana has the story for us. dia diana? >> reporter: they said it could not happen again. home prices negative nationally and an analyst says the sinls are pointing in that direction. first the latest read on prices. home prices nationally were up 6.4% from a year ago in august and that includes sales of distressed properties and last year at this time up twice that most. folks at core logic said it keeps prices in the positive and then another analyst says there's a real danger of a triple dip. he's using the west as the canary in the coal mine. price gains there coming down sharply because so, too, are distressed sales and that drop in the west will have enough to impact consumer sentiment and could spiral into that third dip in home prices. now, a survey of real estate agents by credit suisse found that slower buyer traffic leading to willingness for buyers to sit on the sidelines and say sellers are reacting and again lowering those list prices and first-time homebuyer costs approaching recent peaks are higher rates, prices and mortgage insurance and because of that they're actually lowering their estimates for housing starts for 2015 and 2016. more, of course, online. real realtycheck.cnbc.com. >> stay right there. >> sherry olafson is our guest. welcome. >> thanks. >> how likely do you think the triple dip scenario is, and how fearful should we be about it, do you think? >> you know, i would not be surprised to see some price drops in certain pockets. for example, we have pockets in texas right now where because of the great job market there and because of such slow construction prices are really going through the roof and unsustain bring so. i wouldn't be surprised to see california where we have chinese buyers running the prices up even if they lose a little bit of man and for the nation as a whole, it won't happen because the fundamentals aren't out of whack with prices and in fact most of the markets we are 3% to 5% under where valuations should be and if wages don't continue to increase, we may see price appreciation in homes coming a halt but right now there's a huge difference of the slowdown in appreciation and something that we could ever potentially see calling a drop. >> what do you think that would do to fed policy? i mean, obviously, if they start to raise rates, that puts more pressure on this market we are talking about is kind of anemic right now overall. >> numbers are something like for every quarter of a point increase outpricing another 25% of the population for something like that. for sure that's one of the reasons that the fed's keeping the raits low as they have been and no one's expecting a fast increase. it's bound to happen. i think the bigger issue is financing and fha costs and fha is now looking at that. castro recently said, you know, we need to make affordable housing and housing affordability not be a bad word anymore. it's a hangover of the crisis and biggest impact holding folks back. >> diana -- if we have the 10-year back at 2.35% and zillow saying the 30-year mortgage rate is back below 4%, does that aleleviate the scenario at all? >> it helps a lot. we're expecting mortgage rates to go up for a year and the thought process is they had to go up and they haven't. time and time again we see the indicators to push rates up, they don't. when's more important is not the rates so much as the availability and talking about credit easing a lot, we have a new report showing easing for the best buyers out there for the really top credit worthy borrowers and not people to get back into the market and i'll say i agree with sherry i think the safety net under prices right now is still that limited tight supply. i think the price increases are going to shrink dramatically and to go negative you would have to have a dramatic increase in supply on the market and just not seeing this. >> i don't think home builders looking for that. that's for sure. thank you both. appreciate your thoughts on the housing market today. very, very important. >> 20 minutes to go here and considering the action in markets lately. things have taken a turn for the volatility, the choppy. it's not the end of the world and could be a change in trend here. and the dow off 224 points. much more ahead on these falling markets. yes, we will. and then later, a first in broadcast news history. get this. we have aerosmith's joe perry with us and our own larry kudlow. in my dream, we hand joe a guitar and larry belts out "dude looks like a lady." stick around and see if we can make that happen coming up. my name's louis, and i quit smoking with chantix. i had tried to do it in the past. i hadn't been successful. quitting smoking this time was different because i talked to my doctor and i... i got a prescription for chantix. along with support, chantix (varenicline) is proven to help people quit smoking. it was important to me that chantix was a non-nicotine pill. the fact that it reduced the urge to smoke helped me get that confidence that i could do it. some people had changes in behavior, thinking or mood, hostility, agitation, depressed mood and suicidal thoughts or actions while taking or after stopping chantix. if you notice any of these, stop chantix and call your doctor right away. tell your doctor about any history of mental health problems, which could get worse while taking chantix. don't take chantix if you've had a serious allergic or skin reaction to it. if you develop these, stop chantix and see your doctor right away as some can be life-threatening. tell your doctor if you have a history of heart or blood vessel problems, or if you develop new or worse symptoms. get medical help right away if you have symptoms of a heart attack or stroke. use caution when driving or operating machinery. common side effects include nausea, trouble sleeping and unusual dreams. i am very proud. i love myself as a nonsmoker. ask your doctor if chantix is right for you. welcome back. markets pretty much at the lows with 15 minutes to go in the session. off 237 in the dow. bob pisani covering the action all day here at the new york stock exchange. >> what are you seeing? >> intraday with europe closed, seen selling out of the europe in the last few days. the market might improve. not been the case. we are essentially at the lows for the day. what we have here is concerns about slowing global growth combining with concerns of the idea that the fed may or definitely hiking interest rates perhaps sooner than later. those two ideas are colliding together right now. take a look at sectors today. notably weak are industrials. terrible performers for a month. here's the risk-on sector going for the last few days, terrible. put up industrials. i want to show you bigger names in industrials today. there was a downgrade of bank of america for coupummins. deere is downgraded and got to be a 52-week low, if not within a dollar or so. so these have been terrible performers, day after day. not just an individual problem here. gold stocks weak. finally, guys, my key point here, clarification on global growth. yum is after the bell. 50% of the earnings in china. want to see hour china is doing and the rest of the world is doing. getting to different directions global growth right now. >> such a great company to give us a read on all of that. thank you. nasdaq down about 1.3%. >> let's head there with morgan brennan with the day's action. morgan? >> hi, thanks, yeah. we are seeing stocks trade near the lows here, as well, today. down 1.3%. 58 points to 4396. we are on track for the lowest close here for the mass dak composite in two months. month to date, first five days of october, down more than 2% and the last 30 trading days, down 4% and seeing an acceleration in the selloff here. tech sector, one of the worst performing in the s&p today. a lot of this comes back to stronger dollar and weakness and then the earnings season. tech sector is obviously very exposed to currency head winds given the fact of overseas sales there and driving this selloff trading they tell me. >> heading into the close, again, about 12 minutes to go here. 221 points in the red the dow is today. >> art cashin signaled about $500 million in stock to sell. >> oh. >> on the close. that's the imbalance right now. so we'll see if it can pare off and more selling pressure going into the close right now. next hour of the program, two more candidates for the next list of movers and shakers for the next quarter center. we have anne wojcicki and kat cole. i have said, i'd want to run cinnamon and she follows me on twitter. >> she was running hooter's outside the u.s. >> you want to meet this woman coming up. who do you trust? 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>> i'll tell you, today's a good day to be a treasury note. prices are up. yields are down. i think maybe christine lagard called it correctly. they're ratcheting back expectations for pressures look like and suddenly bonds don't look too expensive. >> do you agree? >> i think there's a voluntarily id point there. you want to look at three things right now. when's the u.s. economy doing and reasonably good. not great. >> which is what the imf said today. >> corporate earnings is key for fourth quarter. especially in the midterm election. this is going to be very critical that earnings come in strongly and 8% to 10% earnings number, that looks good for equities. >> quickly, the third was -- >> well, the third one is that europe doesn't collapse. >> okay. >> that's critical. it's bad. we know it. doesn't get wrs. >> bob, just on the earnings point here there are some saying, look, the second quarter hit a number of records on revenues, earnings and then no preannouncements for q3. do you think there are unhappy surprises tomorrow? >> i don't think so. i think companies are prudent in managing the balance sheet. we are looking at corporate credit as a very good place to be, particularly with the correction of credit spreads and i think companies have understood that real final demand is sluggish for foreseeable future so they haven't done anything too aggressive. i think things will be fine. >> we'll take a quick break and bring you both back and look at the market heading toward the close. the dow still sitting near the lows. we're black with the closing countdown in a moment. >> yum brands with results after the bell. jane wells will have the numbers second they hit the tape. that's a great global gauge, as well. got to watch the china numbers in there. keep it right here. plorer card. i have saved $75 in checked bag fees. priority boarding is really important to us. you can just get on the plane and relax. i love to travel, no foreign transaction fees means real savings. we can go to any country and spend money the way we would in the us. when i spend money on this card i can see brazil in my future. i use the explorer card to earn miles in order to go visit my family which means a lot to me. ♪ i have $40,ney do you have in your pocket right now? 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[ mghave a nice flight!ra pak viabag right here.saver® traveling can feel like one big mystery. you're never quite sure what is coming your way. but when you've got an entire company who knows that the most on-time flights are nothing if we can't get your things there too. it's no wonder more people choose delta than any other airline. -- trading art cashin had it. he said 15 minutes to go, about $500 million to sell of stock going into the close and we are seeing the markets make new lows right now. the dow down 1.5% and pretty much the kind of decline for all the major averages here except for the transports down 2.4%. highlighted this already. the decline in the transports even though the price of oil has continued lower. let's show you the dow first, though. the kind of trading pattern today. we had a bit of a move higher on the open and then moved sideways to the downside. and we just continued to head to the lows of the day here so right now going out with a 1.5% decline. as the price of oil, well below $90 a barrel now at $88.77. decline of 1.73% today. much of that the expected slowdown in demand. we heard that from a couple of agencies today including the imf and there's $88 and change. what are they buying? 10-year treasuries and yield down to 2.34% a decline of 8 bases points. let's pin you down. i mean, you were making positive comments of treasuries. would you buy them at these levels right now? >> yeah. absolutely. i think the pressure's being turned up. on janet yellen and the fed saying they go into the release of the minutes. tomorrow and then month end they have a very important fmoc meeting and she is claiming they've moved to data dependency and looking at the data it is generally softening and i think the fed has to be careful about what they do to normalize interest rates. >> how much lower do you think they could go here, the rates? >> i think we could easily get to 2%. >> if that's the case, oliver, you're constructive on the stock market, but if they're buying bonds, are they buying stocks too? >> i think there's room to buy both and what i see in this market is an important lesson for all investors. don't abandon an asset class. overweight one versus the other and don't abandon it. things can turn. individual investors in particular want to make sure they stay diversified in sector basis and equity classes and fixed income classes and keep a balance and step away from the noise a little bit. this is one day. this is not -- bob and i were talking earlier and he said 2100 call may not be wrong yet. there's still sometime to go in the year and looking more and more difficult and stay diversified. >> a conclusion drawn from the imf report if europe will weaken, watch those multineig l nationals as the dollar continues higher. do you like the multinationals here then? >> some of them. energy companies. a great holding and we like the stock, a great dividend, strong balance sheet and selective in anything you pick, fixed income or stocks. >> can the dollar continue higher and rates continue lower? >> i think absolutely. i think that the u.s. economy is definitely outperforming other economies. yellen normalizes rates is one component to the puzzle. >> thank you very much. going out on the lows. dow down more than 270. we'll see if this selling continues tomorrow. but in the meantime, our two of "the closing bell" with an all-star panel and kelly evans. i'll see you tomorrow. thank you, bill. welcome to "the closing bell," everybody. i'm kelly evans. the dow jones industrial average dropping about 275 on the close. we were in the negative all day. in fact, the highs of the session we were off three points and we have been in the red up pretty much since getting under way here and you may have heard the closing bell down here going off a bit early. not a good omen for those looking for one right now. minus 275 on the dow. red arrows. transports looking especially weak today, declining 2.5% and even with lower oil prices. the panel is here. larry kudlow. michael farr. sharon epperson and tim seymour. we've got gordon charlat. gordon, let's start with you. we took a real turn for the negative -- he's going to finish trading. i'm sorry. tim seymour, maybe you can tell us why we took that additional leg lower just now. >> i think a lot of this is positi positioning. picking up and the s&p broke at 1940, broken the trend line. that was the 62.5% retracement and technical stuff that's accelerating the downside and what's interesting is a day where the dollar weakened a bit and may be a little out of gas. seeing treasuries on the 10-year somewhere. putting in a bottom around the 231, 232 range in if so, this is where markets look back into earnings season saying this is an opportunity and i think this is about anxiety going into the earnings season when suddenly you have a number of guys on the street downgrade the earnings forecast and to me a little to the party. >> fair enough. it may be about earnings, larry, also on a day when german industrial orders were horrible. imf talking about global growth and people e-mailing about how macaw and doing worse than expected and a classic global growth scare? >> i doubt it. i think tim is right and technical stuff going on here. the fundamentals -- i'm in the warren buffett camp right now. buy the dips. tim is right about technicals. positive yield curve, positive for the economy. there is no inflation. >> but -- >> the dollar is strong. profits are going to outperform. and actually, if you look at the evidence, including last friday's jobs report, including the rise in capital spending by businesses, i think the u.s. economy, it isn't 4% or 5% what i want but maybe 3%. >> is this about the u.s. economy? >> i think it's always about the u.s. economy. >> we also know what's happening right now. the u.s. fed and a lot of officials like to proceed like we're in a sustainable recovery and getting the strong payroll figures and then a day like this and the numbers overseas to worry about. >> we have been so long without a pullback. finally seeing valuations come down. pullbacks are normal. i'm not quite as sanguine as larry is about the economic robustment of the economic recovery. i think the numbers in europe are kind of a problem and we could easily see europe go into recession and i think that does have an affect on what will happen here in the u.s. >> can i make a -- >> a day like today looking at what happened and the momentum going into the close it is more tech kathie lee and we can talk about some of these bigger issues. >> good. >> you have to watch some of that. when you talk about europe, though, i think a lot of investors are concerned about, you know, if we're not seeing exactly the growth we want right now here the fed tells it's better and coming and see it happen in europe and you get worried. >> no, no. for years we're talking decades, okay, decades, american economy grew rapidly and japan and europe basically in recession. let us not forget. your economy does not thankfully depend on europe. >> i understand. >> are you kidding me? >> japan, fine. >> europe is growing 1.5% and the united states growing at 4%. in the '80s and '90s. we have never been dependent on europe. biggest trading partners are not europe. it's canada and mexico. >> looking back on the great moderation and everybody going, what happened? why was there all of this concern of deflation and the u.s. and actually had a strong economy? you could argue it's always because of the external factors and maybe a repeat of that again here today. >> i don't buy any of it. as i said before, take a look at the treasury spreads. please, people. >> but the 30-year treasury yield, the long end is lowest -- >> spread. >> the speed. the yield curve is coming down, flattening. >> over 200 basis points. why? there's no recession for years to come. >> let's let tim seymour come in. tim? >> at the risk of ringing larry's bell i will say this about the yield curve. it will flatten. i think it should. it's a benign inflation environment. doesn't mean deflationary environment and people were worried about the fed being behind the curve and now the risk is to hawkishness in the fed minutes. >> good for you. good for you. tim, you get the nobel prize in the first half hour of the show. >> that's what i'm saying. >> let's hear from gordon charles. straight from the floor. what is going on? >> well, i think that people are wondering if the market itself caught ebola virus. we have to check with the cdc. it started with the bad numbers out of germany and, you know, all kidding aside there's a little bit of flight with the ebola scare going on and the fed and a lot of reasons to sort of sit there and say, hey, you know what? maybe time to change tact here and seeing the funds seem to be getting out of a sort of a protect their assets mode opposed to growth mode and i think seeing that reflected in the vix and essentially when's happening now is people saw the data out of germany and maybe time for us to pull back a little bit and what's coming up is important and what are the keys to that? i think you have to look at energy prices right now. >> right. >> the fact of the matter is oversupply and that's going to reflect on the balance sheets as we go into next quarter and we see earnings so i think that there's, you know, half full, half empty scenario. >> fabulous. >> right now if you sell because of the emotion in the moment you'll probably be wrong and regret it. >> sure. >> i think -- >> i agree. >> the slide in oil prices is really considerable and one to watch very carefully, especially because as we're seeing the decline in gas prices, people aren't saying i have more money to put in the market but i have more money in the pocket and experiencing and michael will weigh in, next couple of months is how to pay for more out of pocket costs for health care and looking at this. so the money is going, not having to pay as much for gas and other expenses. >> you are right. >> just astra mattic for them. >> we have to remember it spurred the boom alone and the lights are snuffed out. >> no, no, no. wait, wait. >> i knew you were going to -- >> wait. explain to me how energy -- >> this is a catch -- it's a capital intensive business. >> of course it is. people are rushing into it. by the way, this is a boom. >> never been a sign of a problem to come. >> prices are going to continue to decline over time. >> but it's becoming uneconomical. >> you are not even near that. about $45. about $45. >> that's correct. >> in terms of overall oil price. >> that's the lifting price an it's entrepreneurs. it is not the big seven sister oil companies. >> yes. but they need the capital in order to make the projects viable because they -- >> double-edged sword. it's a double-edged sword. it's a double-edged sword. when you see oil prices and commodity prices going up, it is typically in an expansion and people are building, demand for that stuff. >> right. >> it's a tax on the consumer and we are a two thirds consumer driven gdp. >> fair point. >> sharon has said things are better for the consumer. consumer hasn't seen wage increases since 1995 and still strapped in terms of being able to drive an economic expansion. >> so you think that the drop in oil prices here that the drop that's already showing up at the gas pump across the country is fundamentally going to help bail consumers out a little bit? >> yes. >> it's estimated to $60 billion at current gasoline prices. >> $60 billion? >> yes. >> tim? >> one thing you're overlooking here, though, with the price of isle here and that is the whole -- >> gordon, i'm sorry. >> you are looking at the headlines a week ago, two weeks ago, it was isis, the middle east. and now that seems to have -- even though isis is still dangerous and concerns of syria. >> that's positive. >> not disrupting the oil supply and it's not going to cause america to have to change their policy that way. >> tim? >> i'll say this. oil prices probably go lower and getting to -- again, we have talked about technical levels today. 88, 88, 88, 90, 95, starting to break down into the short term and long term levels and probably get there. i think that's very positive for the consumer but let's get to the stock market. this is very good. if you talk about lower interest rates and good for energy companies and positively core related and this is an opportunity to look at. >> great point. larry, we have to wrap it up here, as well. all comes down to central banks to some extent. do you think the european central bank is forced to react to some of the market activity? >> yes, yes. i think the ecb is erring on the side of tightness. i don't think the federal reserve will move for several months and i would argue, maybe we can talk about this later. the fed shouldn't move until we get a corporate tax cut until next spring. >> are you sure that's coming next spring? >> no. with the republican senate, i hear it from everybody, everybody watching. i'd like the fed to wait until we get a nice tax cut. >> they've been waiting about 20 years. >> but -- and don't think -- >> i think it's coming. >> don't be too jumpy to buy this dip. if it's buy low and share high, we are high in markets. >> think about how far we have from the highs. we are not that far off. >> getting on the phone. >> gordon, a last word to you and tim here before we go? >> i think we are going to tastt to see it stabilizement i'm with larry. it is emotional and seeing the vix and volume in the building. that's an opportunity. it's a good time to pick their pocket when they're losing their heads. >> tim, are you losing your head? >> no. the dollar strength didn't affect third quarter earnings and weighs into the outlook and i don't think the numbers will be as bad as people say and probably 3% to 4% earnings growth and put it around 30 bucks and enough for the market to hold ground. it's not going to 1850 tomorrow. >> all right. all the more reason to tune in tomorrow. alcoa getting things going and today we hear from yum brand shortly. tim, gordon, we will let you go. tim's coming up with the "fast money" crew at 5 talking with an analyst with a way to play goprowithout buying the stock. u.s. hospitals are currently treating with ebola patients and in spain reportedly taking extraordinary measures to contain a case including killing that ebola's pet dog. our meg terrell joins us from the centers of disease control with more. hi, meg. >> reporter: that's right. as you know, there's questions of screening passengers entering the united states from affecting countries in west africa and we were at a news con briefing here with the director saying new measures will be announced along those lines. >> and as the president said yesterday, we are looking hard at what we can do to further increase the safety of americans. and in the coming days, we will announce further measures that will be taken. >> reporter: he was also asked about experimental news and we're getting word that ashoka mukpo nbc cameraman flown back yesterday is receiving the experiment brincidofavir and learned yesterday that duncan, treated in dallas, is receiving that same drug and was given it starting on saturday. he is still in critical condition. we're told by the hospital he is on a respirator and kidney dialysis right now. none of the 48 contacts monitored for 21 days shown any signs and symptoms of ebola. and now, dr. frieden saying there's signs of progress in west africa. as you mentioned, the first case to be transmitted outside of west africa, confirmed yesterday in spain and that nurse, there were some questions about the dog and whether that could be a means of transmission of ebola. the cdc said they haven't identified that as a means and did note that ebola does infect mammals and that's a way it spreads in west africa in rural areas oftentimes through bush meat, kelly. >> wow. a lot to follow, meg. thank you very much for doing so for us this afternoon and also sending it to dominic chu here with a quick market flash. douick market flash. dom? >> we're watching kraft. they're flat in the session and you want to keep an eye on the fact they're increasing the quarterly dividend by 5% to 55 cents per share. again, that stock flat in trading. down 1.3% in trading and kraft foods separated the snack food business to where it is now, now mostly cough fooes, prepared foods, velveta and maxwell coffees and that side of kraft is increasing the dividend by 5%. back over to you. >> dom, thank you. absolute improvement, a relative one given low interest rates today and it's a second day of the aig bailout trial. former treasury secretary geithner taking the stand today. our mary thompson is in washington with the details and we'll discuss if the government could lose this case. cnbc covered the business leers of 25 years and setting our sights on the next 25 and calls it the next list and i'll be joined by a pioneer in the business of genetic information with her company 23 and me. will the government allow it? that's the big issue. stick around for more. and a gentle wavelike motion... aahhh- ahhhhhh. liberate your spine, ahhh-ahhhhhh aflac! and reach, toes blossoming... not that great at yoga. yeah, but when i slipped a disk he paid my claim in just four days. ahh! four days? yep. find out how fast aflac can pay you, at aflac.com. my golden years will not just be gold plated. i had 3 different 401(k)s. e*trade offers rollover options and a retirement planning calculator. now i know "when" i'm going to retire. not "if." so i can reach ally bank 24/7, but there are24/7branches? it's just i'm a little reluctant to try new things. what's wrong with trying new things? feel that in your muscles? yeah... i do... try a new way to bank, where no branches equals great rates. . welcome back. earnings of yum brands hitting the tape. jane wells joins us with the details. jane? >> hi, kelly. the stock trading a little up even though there was a miss on the top and bottom line. 3.35 billion. the street looking for almost 3.5 billion. adjusted eps and the street looking for 88. china the story where most of yum's earnings and revenues come from. it had announced in september that it expected same store sales in china down 13%. they were actually down 14%. margins came in better than they were a year ago at 14.9%. and the street was looking for 18% there so margins a little shy. i'm sorry. margins shy of what the street was expecting. earlier, last quarter of the ceo saying yum brands well on the way of full eps growth of at least 20%. now apparently they're expecting it to be more like 6% to 10% and the ceo novak saying i'm confident in the ability to deliver strong, sustainable growth in the years ahead despite the supplier incident in china impacting sales to reduce the full-year eps outlook. back the you. >> all right. jane, we'll leave it there for now. thank you. > the shares were down today. thank you. yesterday it was former treasury secretary paulson admitting the bail yut of aig meant to be partly punitive and now tim geithner taking the stand in the trial about the government's bailout of aig and mary thompson joins us now with the details on what happened. mary? >> reporter: geithner is still on the stand and been there for about five hours today and most of the questions posed to mr. geithner by the lead attorney answered with the following statements. i don't recall. i don't recall precisely. i don't know. the former fed -- head of the new york federal reserve pressed repeatedly for interest rates on various government credit facilities, the collateral asked for of other troubled firms and the dates of proposed term agreements for an aig bailout. all part of a strategy by the prosecution to prove that aig and shareholders were treated unfairly in the process charged higher than average interest rates on the loans given and shareholders couldn't vote on the preferred shares the government eventually took when it took a stake in aig as part of the bailout. boise also asking geithner why he has not followed up on several e-mails of private proposals. geithner said he was exposed to all sort of ideas at the time and, quote, if there was any sort of credible offer to take some of the extraordinary risk off of our hands, we would have welcomed it. there was a moment of levity asking about a call of hank greenberg and one of the plaintiffs in this suit against the government. he said, you do respect -- you do have a high regard for mr. greenberg, don't you? geithner took a long time and said i have a complicated regard for mr. greenberg. keep in mind, geithner's expected to stay on the stand through the end of the day and then he has the cross tomorrow and he's probably not going do get off the stand until lunchtime tomorrow. that means the testimony we were expecting from former federal reserve chairman ben bernanke tomorrow, that is going to be pushed to thursday and possibly into friday and will be here again tomorrow listening to the cross of mr. geithner. kelly, back to you. >> all right. mary, certainly some headlines there. thank you very much. reaction to the aig trial and more by the way on today's ugly selloff, too. in an exclusive swrinterview. john levin. >> hello. it's good to be here. the full story isn't written. i think that hank's suit is a great suit and needs to be followed but the elephant in the room to me is always the board. what the board did. the government -- people talk about hank, the government. what was the board doing? and let me say since i'm so critical of the board that they acted in the best way they could, they had the best advice, complicated situation and tremendous pressure and no -- >> regarding the transaction with the government? >> exactly. >> because i want to be critical of the board. look. one ocf the pieces here is elio spitzer and on national television criminally indicted hank greenberg for accounting irregularities and went to the board as you know and basically said, you got to throw out greenberg or i'm going to have a huge suit. they forced greenberg out. i believe this is '05 or '06. greenberg, the mastermind of the financial trading system -- >> they wouldn't have been in the trouble if he stayed there? >> i don't know that, kelly. but i know that hank greenberg is a real smart guy and might have managed the whole issue of the collateralized debt paper differently. that's a big if. >> john? >> i agree 101%. >> thank you. >> an interesting point to say is that there was a lot of shareholder communication to the board because we viewed -- >> including your letter. >> my office -- i don't want to tell you how many. many letters but there were at least 30 letters to the board that our firm alone wrote and on september 29th, talking about punitive things, i wrote and just two points. one, the central truth is that the government's money is in the company and i think that's what mr. baxter testified to yesterday and that mr. paulson will not withdraw it regardless of the legal rights or the board's action. that is what i wrote to the board on september 29th, 2008. >> this is -- is this the fifth amendment taking clause? this is the government -- >> the government put the money in without the agreement signed. >> right. essentially taking assets. >> they wouldn't have caused the financial crisis. they said the company needed it. once the money was in -- >> aig would haven't caused the financial crisis? >> no. but the government taking the money out would never have taken the money out. if they said it was necessary -- >> yes, yes. >> what is your point of the board? >> should have negotiated more favorable terms for the shareholders, lower interest rate, less ownership and most critical point and mentioned today was that there was originally and it's in my point four of my letter that there was a shareholder vote but it was clear from the committee that they were not going to have a -- >> here's the central problem. just one second. at the time, this wasn't about shareholder interest but taxpayer interest as much as anything. and even -- we saw it in the case with last week the ruling on fannie specifically and sorry to the hedge funds who this was an unusual and extraordinary circumstance. >> by the way, just an add-on real quick. spitzer never got a nickel out of greenberg. he was innocent on both chargesn you're asking. my question to you -- >> right. >> -- is did the board have a chance? you're in an extreme world financial crisis. i'm not a bailout guy as a rule but in 2008, at that moment in time, in your opinion an extreme position. which is what paulson testified yesterday. remember what he said yesterday? we had to prevent a moral hazard and that's why we had to impose high interest rates far signal. >> john? >> i thought about that and there's several arguments with respect to that. one is it did not have to be a 14% interest rate. it could have been a 9%, 10%. >> agreed. agreed. >> didn't have to be a 79 stock ownership. >> agreed. >> and still under law the hedge funds in fannie mae -- i don't know about it. the shareholders of aig of a board and there was a taking. >> there was by the way a fazing in. >> michael, what were you going to say? >> i'm just wondering, i'm never inclined to give boards a lot of slack because i like to hold them very accountable but this is a where as larry said we were really in crisis. they were negotiating for a life or death and for them to sort of get in and parse through the rate to pay or what sort of rate not to pay or what the other terms were, it didn't feel like anybody had that time. it didn't feel like anybody had that leeway. they were going under and criminal charges. >> correct me if i'm wrong. the first tranche -- and then the third tranche which was the biggest tranche bringing them up to 180 billion was 14%. and they wound up coming back from that, but i think -- >> we have the move on in a second. >> but i think that the treasury was deliberately sending the world markets a signal. >> john, respond to all that if you will. >> i was not in the boardroom and gave them the benefit of the doubt but in too big to fail, where andrew's probably accurate, he said one director dissented which was sorkin. which was ballenback and my view was that aig had many solvent subs. actually, had hank been there, he wouldn't have agreed to the points and bankruptcy was an enormous threat. >> in fact, if he had been there -- >> it was threat. >> hank wanted bankruptcy. >> i don't think he would have committed to the trading firm and the transactions. >> no. >> having said that -- >> what will happen? >> it would have been a different game. different representative. >> different football field. >> listen. >> absolutely. >> is the government and quickly about the markets before you leave. is the government going to lose this case potentially? >> i mean, i'm not law school trained. i'm not saying a word. >> i love it. >> before we go let you go then, how worried are you about the worried of today. china slowing. the u.s. strong. when's your take on all of this? >> i don't mean to be noncommittal. i'm worried and generally hopeful and the companies are really strong and just a lot of cross currents. >> yeah. >> just a lot of cross currents. i'm expecting more volatility but -- >> it's going to be up. john, thank you so much. >> thanks so much. a rough day for stocks across the board and parsing the action with the pros next and look ahead to what to watch for tomorrow and positioned earnings season looms. relief. a cure. today, we believe every life deserves world-class care. as one of the top four hospitals in the nation, over 100,000 people from around the world come to cleveland clinic for care each year. and we're ready for you with a second opinion or a same-day appointment today today today and everyday. call today, for an appointment today. your customers, our financing. your aspirations, our analytics. your goals, our technology. introducing synchrony financial, bringing new meaning to the word partnership. banking. loyalty. analytics. synchrony financial. enagage with us. where the reward was that what if tnew car smelledit card and the freedom of the open road? 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(vo) well played, business pro. well played. go national. go like a pro. red arrows across the board today for stocks. for now, let's bring in bob pisani from the floor of the new york stock exchange and morgan brennan at the nasdaq. we want thoughts from our panel, as well. bob? >> i'm calling it the new medioc mediocre. i think christine legard is right. we have collisions of the slower growth and the fed raising interest rates. the big thing is corporation vs to clarify the global growth picture and that's why i read every word yum said and same store sales in china and the concern would be was a lot worse than they were guiding. it wasn't. number two, novak, the ceo said china sales are recovering and used that word. those are the words to hear to get people's confidence back that the global economy is not dramatically slowing down. >> all right. over to morgan brennan at the nasdaq. an ugly day there, too, morgan. >> it was. we saw stocks in the red all day and then after europe closes and saw things start to accelerate and coming into the close here. the nasdaq down 1.6% today. small caps and russell 2000 again the biggest loser, 1.7%. we're seeing the tech names selloff. it was a broad selloff across the board. if you looked at charts to see the green was for the nasdaq composite, it was specific stocks with specific stories, companies like keurig green mountain coffee be an upgrade and looking at the dow jones industrial average, as well, the only component there that was up is coca-cola. again off of keurig. >> true. >> seeing volatility back in the market. that was up, vix up 11% today. and, yeah, just rocking and rolling. >> you know, i just want to weigh in. i think bob's point about earnings and profits is really an important point. really important. they're the mother's milk of stocks. >> a wise man once told me that. >> and the economy. what i'm suggesting is looking at some of the evidence coming in on the economy, i wouldn't be surprised if profits outperform. that's my point. i want to make another point to my friend michael here, michael farr, the dollar. >> the dollar. >> up 10%. okay? it's 30% below where it was 10, 15 years ago. remember this. the dollar not only helps consumers because they're purchasing power buys more. every corporation is cheaper to buy whatever they buy. they're like consumers. okay? so i admit commodity producers might be hurt by a rising dollar. a little bit at the margins. every other -- everything they buy will be cheaper because of a stronger currency. and anyway, the king dollar that i want is not -- we're not here yet. that is little move. >> sharon, what should people know about how much further oil prices could fall and people in the market are saying about it? >> i think people in the market saying it could fall further and looking at the oversupply issue or the abundant supply here in the u.s. and not seeing the demand. and the data we got out of europe today underscoring that. that could be good news for consumers for drivers for your heating bill this is winter. but then you have to think of the other costs that consumers will face and when i was bringing up the health care costs with the out of pocket health care costs and that's something to impact them whether or not they get the money to -- get it back into the market. that's what's -- >> i agree with you on the insurance premiums. i think, however, you're going to see a year skip. a year skip. >> one to watch. thank you. would you pay $99 to find out what kind of health to expect for your life moving forward? well, anne wojcicki thought so and it landed her on the y nbc next list. she'll join us how she plans to continue innovate ways of genetic and health information to the masses next. cnbc looked at 25 men and women that changed the business world. now as we continue to celebrate our 25th anniversary, we are looking forward to the innovators to change the face of business in 25 years with the next list and julie born ststin. julia? >> thanks so much, kelly. i'm joined by anne wojcicki, but almost a year ago the fda ordered 23andme to stop giving consumers information about the health risks. how will you survive as a company if you can't give the vital data? >> yeah. we're definitely -- it is expensive to go through the ive individuals can continue to get their raw data and the ancestry and we have a robust, largest ancestry service out there. >> is that enough? do you need to be able to give information of their genetic makeup means? >> the mission of the company is clearly founded in revolutionizing health care and empowering consumers so we're working hard with the fda to file approval as a medical device and hoping to be able to come back on the market soon and give people back their health information. >> seems like you have to based on what i understand to continue to file for approvals for different types of reports with the fda. >> the path forward with the fda is still being defined. we have submitted one application on one test to the fda. we would assume that going forward we'd have to submit more or there would be some kind of scaled solution and still to be determined. >> seems like an expensive prospect. can you continue to survive as a company if you don't get the broader approvals? >> i'm very committed to the company. ancestry is a big market but health is critical. >> you say you have the biggest j nettic database in the world, what else can you do with that? >> part of what we're trying to do is revolutionize research, as well. academics, pharma companies want to understand genetics and human health. so by looking at a database of individuals that fill out surveys, we can get research questions answered significantly faster than any other way possible. >> so what's your direct rape with the pharmaceutical companies? >> we have relationships with companies and launch add study in inflammatory bowel disease. we're recruiting people with the disease and they will be partners with pfizer for just cures and understand the disease. >> you recently launched in canada. where are you launching next and does your future lie outside the u.s.? >> we have always had an international presence. werecently, you know, have a even event in canada and plan to do more internationally. the market is interesting to us because genetics is applicable to everyone around the world and important to be there. >> you were named to cnbc's next list. what is your vision for the future in 25 years? >> the foundation is consumers own the data. you are the source of actually transforming our knowledge about genetic information and that putting the consumer at the forefront of their own health care and the genetics is the foundation for personalized medicine and better care going forward and have a consumer revoluti revolution. >> you said fda is valuable and must hate them at the same time. >> they have clearly played an important role. i'm happy they're reviewing all the various devices i use and drugs we use and that i understand that there's a public safety. genetic information is new and so therefore it's 23andme's responsibility to work with the government, help understand what's the right path forward. >> very interesting. we'll be very interested to watch that path forward over next 25 years. congratulations on being named to the list and thank you for joining us. >> thank you so much. >> kelly, back over to you. >> julia, thanks very much. up next, another innovator of the next 25 list. from waitress to winnabon president, kal cole is taking a different approach to business and joining us to say how she's changing the face of franchising and tune in tomorrow, former cia director and secretary of defense leon panetta joining us to discuss everything from isis to his frustrations with the obama administration. we're back in two. o's going to ? 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all day yesterday on cnbc we revealed some of the top thinkers and leaders on the cnbc next list. those that lead the industries the next 25 years. today highlighting some of them and with me is kat cole, president of cinnabon. i think you heard bill griffith saying it's the job he wants. >> i love that. yeah, i'm hanging on to it for now. he has to get in line. >> i found interesting the extent you say it's as much expanding locations as building a brand. how much of a brand is cinnabon? how are you remaking franchising? >> it truly has expanded beyond so much more than a product and i think that's what it takes to be successful in a consumer business today to be defined as one of the greatest indulgent food brands from franchise growth and what with e're famous for. the aroma in malls and airports and also in over $700 million in product sales through consumer package goods, partnerships and appliances of white wave, green mountain coffee and that has fueled the power of the brand and brought access to the brand to consumers no matter where they are in the world. >> it's amazing. 800-calorie treat has -- >> people are talking about it. the whole #sweettalk. and the number of twitter followers that cinnabon has and facebook and instagram. tell me how important the social media campaign is to really the branding you're doing globally. >> yeah. social media has been critical to not only building the brand but we have so many fans who express their love for the brand online and it's our job to be the biggest fan of our fans. we want to show them love. if they love cinnamon and frosting and vodka or our k-cups or creamer, we want to show them love right back and that creates community and where business is going is intersection of product, community and commerce and it's tough to succeed and cut through the noise and the marketing clutter without bringing them together. >> so, kat, it is michael farr. we know that you have a wonderful indulgent product and, you know, i try to really hold my nose as i walk past them in the airport because they kill me. i love them. >> don't do that! >> but with the real trend towards eating healthier and the pressure on mcdonald's and othe pressures? are you concerned with sort of an evolving liability of your product and of the consequences for health? >> well, it's certainly an important trend to watch consumers actually not say they want healthy alone but buy that way and eat that way. and so, for a brand that's clearly positioned as an ill do du indulgence, how far do you want to go? they come to us to treat themselves, for an emotional connection, for a little fun part of their day so we want to protect the differentiation of the brand which is rooted in the giant cinnamon roll but drive the relevance of the brand and the business by launching smaller portions, more variety and other expressions of the brand in grocery to stay relevant even to health conscious consumers. >> that was my question, as well. >> larry kudlow. >> i'm going to ask you, when's plan b? >> yeah. so plan b is continue to express the brand. in as many places as we can. we do business in 56 countries and only continues over time but for the brand plan a, b and c and by the way in today's market you have to have plans a through z and agile and ready to respond and new competition that pops up but the real plan is to follow the advice of my mom so many years ago, don't ever forget where you from, but don't you dare let it solely define you. so for cinnabon, all of our plans are about staying rooted in where we came from, but not feeling confined to just that market position. so that means we can be fame to us small indulgent treats and we can have a delicious vodka on the market that works. so plans b and c are being about nimble. >> i'm on plan c myself. >> only c? wow. >> you can see the full list on cnbc.com where you can find out more. she's shall be who by the age she was 20 had opened up the first hooters on most continents outside the u.s.. incredible story. we appreciate her time. he's walking the walk. up next, i'm joined by joe perry. we'll talk tales of the road to how much he lost in today's selloff. i make a lot of purchases for my business. and i get a lot in return with ink plus from chase. like 70,000 bonus points when i spent $5,000 in the first 3 months after i opened my account. and i earn 5 times the rewards on internet, phone services and at office supply stores. with ink plus i can choose how to redeem my points. travel, gift cards even cash back. and my rewards points won't expire. so you can make owning a business even more rewarding. ink from chase. so you can. you know your dentures can unlike natural teeth. try new fixodent plus truefeel. this smooth formula helps keep dentures in place. it's free of flavors and colorants for a closer feeling to natural teeth. fixodent. and forget it. rock and roll comes to wall street. today aerosmith guitarist joe perry has had his ups and downs and now he tells all in his autobiograp autobiography. it's out now. and we're lucky enough to have the man himself here. joe perry ahead of his national book tour. welcome. >> thank you. >> first time you've been in the new york stock exchange? >> yes, it is. it's very appropriate to see october 7. i've been looking forward to this day going on two years. it took about that long to get the book done. and this is an amazing place to be. >> we want to get to why you wrote the book, some of the experiences you've been through. can i ask, do you have investments in the stock market? >> we put a little money in there. my wife takes care of the finances most of the time. but we he do have some money in the stock exchange, yes. >> you and i look like we couldn't be -- >> i love this match-up. >> more differently, but we have a few things in common. the money business and trading business is high pressure, high power. you got to be up all the time. and so is the entertainment business. >> definitely. there is no doubt about it. you have to stay ahead of the game a little bit and be creative and think a little bit about what is coming next. >> you're familiar with the pitfalls, as well. and what is so interesting about the aerosmith story is you how you guys survived and it took clean and it's -- and you have 29 year marriage with your wife. this is not the conventional rock and roll image, but it has been an important part of your succe success. >> definitely. i don't think i would have gotten somewhere without the help of my wife and without the need to want to do better, be more creative. and it works the other way. by being that way and being more successful, i was able to take care of my wife and the family that we wanted to build. and after 30 years, we're lucky to be able to have our youngest graduate from boston university this year. >> that's awesome. >> creativity certainly contributed to your success, but you also have to know about the business of the industry. and so how much of that is -- >> well, that's one side of things that being an artist, somehow the way most artists' minds work, we don't position the same way as businessmen. >> and by the way, you because of that, we he thousand have to go. . so we can end the show. we'll try to do some online extras. "fast money" begins after this short break. cute little guy, huh? this guy could take down your entire company. stay with me. on thursday a hamster video goes online. on friday it goes viral - a network choking phenomenon. why do you care? he's on the same cloud as your business. the more hits he gets, the slower your business may get. do you want to share your cloud with a hamster? today there's a new way to work. and it's made with ibm. "fast money" starts right now. live from new york square, i'm melissa lee. a lot of red on the screen. stocks selling off, concerns of global growth. a volatile day if biotech stocks we potential ebola treatments. we'll break down the difference between each stock with the ebola drug play book coming up. we start off with the red makings in the market. jeremy's production numbers coming in worse than expected.

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