Transcripts For CNBC Closing Bell 20141013

No idea how the nurse treating the now deceased dallas ebola patient contracted the virus herself. Does the government have a handle on this outbreak . Were live in dallas with the latest. In the markets heres how the major indexes stand w. The new look today. Off about 34 points. At the moment, you are looking there on the screen at the percentages. Red for the majors. Russell, surprisingly, though, up half a percent today. A little bit of a leading gauge for everybody else. Speaking of new looks, russell 2000, thiss a new look. Up. Thats right. Been on a steady decline since july. A real point of concern for people who watch the market closely and a bounce today back positive by it was up more than 1 and now a half percent. Absolutely. All right. Joining the closing bell exchange, sam stovel, anthony chance and, guys, welcome. I was looking at the notes here. I see renee says market showing signs of being tired. Sam says end of the year. Lucky to have a singledigit gain. Anthony says bad for the s p 500. You havent been negative consistently on this. Still not negative. I actually looked at the relationship of stronger dollar and what it does to the s p 500 and the russell 2000. Conventional view would tell you because the small caps dont have a lot of exposure internationally theyll do better. Yet looking at it historically you dont see that. You see the s p 500 continuing to outperform the russell 2000. Do you think then investors fade the russell bounce . There arent that many Energy Companies in the russell 2000 and the s p has a lot of Energy Companies in it so the energy index off almost 1 . The dow not down nearly that. Following down the energy index for the time being and looks like the russell broke off and a positive sign. Renee, whats changed in the market over the last couple of weeks or even just last week . Is it sentiment itself . Is the it the fundamentals of where our economy is and the stock market to go from here . Well, actually, i think the u. S. Is the best place in the world to invest your money right now. But i do think is that the markets tired. We have seen ady vur intelligence back to the beginning of this year. Russell 2000 officially in correction territory. Down about 13 . The vix is high. Its been the highest level since 2012. Might i remind everyone that october has been historically the most volatile month . Finally, weve also had situation where we havent had a correction since 2011. Since 1932, theres been a correction once on average every two years and we are way overdue. Sam, that being the case, is this the right time for investors to back away from this market . Can people afford to do so if this is another one of the kind of mini selloffs . Hi, kelly. Actually, no. I dont think youre wise to be selling in this kind of a situation. Youre probably better off thinking about where you want to buy rather than where you want to bail. Looking back to world war ii, whenever we have had declines of 10 to 20 pgs, the s p has been able to get back to break even in an average of four months so by the time you spend convincing your adviser or yourselves to sell out the market is probably gone its way back to break even and small cap stocks are quicker taking only three months on an average to get back to break even. Anthony excuse me. Real quick, sam. What would be tell you its a potentially bigger, deeper pullback event . I would have to be really be convinced theres cracks in the fundamentals globally. We are looking at the u. S. Earnings and expecting to see close to 7 increase in Third Quarter operating results and if this quarters anything like last quarter we are going to be surprised to the upside by 2 to 4 so i need to see a lot more cracks in the foundation of our fundamental outlook. Well get a good look this week. Earnings this week. Huge flames reporting. Including general electric, google, the banks and other big names. Dominic chu saying investors might want to Pay Attention to the names of big movers. Dom, with the list we need to know about. Looking for where the action is going to be this earnings season this time around, what you want to do is look at the companies that move the most after the earnings come out, the day after they come out or the morning, the trading session after they come out. So we took a look at s p 500 companies for most the activity upside and downside in earnings reports. So among the best performing stocks on average over the past eight quarters, check out chipotle mexican grill. Up 6 in the 8 times reporting earnings. Up 6 on average and then netflix shares up 7 on average over that same time span so every time they report earnings on average they go up by about 7 . Facebook is also intriguing. Up by almost 10 after reporting the numbers and another report you may want to Pay Attention to looking for an upside move, possibly. The single biggest move on earnings days in the s p 500 comes from Keurig Green Mountain and over eight quarters up 12 . Now, that was helped along by one big report earlier this year when cocacola announced it was taking a 10 stake in the company here and thats that. Downside here, take a look at whats happening here. Alterra down 5 in that time. Best buy down 5 , as well, staples down 6 and the worst performing stocks, staples and whole foods, both falling by an average of 6 during their earnings reports over past 8 quarters. Guys, it is very interesting where the action is when it comes to earnings in the s p 500. Back over to you guys. Dom, you are sticking around. Anthony, talking a lot about earnings here. The stronger dollar is a late in the last quarter story. It may not have a dramatic impact on the numbers we get now. However, if the dollars continue to strengthen through the Fourth Quarter that shows up big time in the current quarters numbers. You may see that in the guidance but if you look at what the rhetoric is from many of the central bankers around the world probably going to deal with this fact already at the Federal Reserve here in the United States. Youre hearing stuff from fisher, the vice chairman, hearing things from dudley, the president of the new york fed and the fact that they may alter the path of Monetary Policy to offset feels like dovish around the world with carney today and steve liesman. Very friendly for earnings if you all of a sudden see the central bankers offsetting the strength of the currency. If i may hone in on the airlines and try to show delta, for example, off 8 on the session. United getting hit here, too. Airlines you might expect maybe to benefit of lower fuel prices but thats clearly not the case. Is it because the Lower Energy Prices reflect demand concerns or the ebola threat potentially and what do you do with the Airline Space . I think the ebola threat is what its all about. Clearly Lower Oil Prices are good for the airlines. This should be a rallying point. I was in jfk coming back from San Francisco yesterday. I can report firsthand, not affected the amount of travel. It was a mad house yesterday in 3 00 in the afternoon. There have been a lot of momentum in the stocks. Now the wind is coming out of the bag but i dont think the fundamentals changed for the Airline Stocks and good time to be buying right now. If airlines or something else, are you a buyer of anything in the current market . I would. And actually, i think that the small caps is a great place to be. Especially given the fact that we are looking at a stronger u. S. Dollar. Those companies are generally insulated against a strong u. S. Dollar so i like small caps and rebalancing in there, i like banks, health care and still technology. Just do go back, anthony, the point of more dovish tilt lately to central bank rhetoric, today we dont have the fixed income market to look at. Its closed for columbus day and dont have the reliability but the 10year Interest Rate is dropping. Inflation expectations is dropping and hasnt there been a policy response . I think there has and well justified and followup on the oil situation. Opec production, its been increasing. Thats why owl eyes on opec for the late november meeting to see if they cut back supply. I think the Lower Oil Prices, reflection of increased supply rather than diminished idea. The saudis floated the idea they dont want to take the brunt of cutting production and want other countries to join in and said theyd let it fall to 80 a barrel hoping the kind of shut down production here or slow down production in north dakota but thats not really the case. That was to me a game of cards. Think need to get the rest of the opec countries to cut production with them. Yeah. Im sorry, dom. You want to weigh in quickly before we go on which report or reports youre going to be watching closely . I mean, scott, we have talked about this all day. This week is going to be all about the banks and all about technology. Theres about 50 i want to say 13 Companies Reporting earnings. Everyone is paying attention to the likes of the bank of americas and the goldmans and morley stanleys, citigroups and jpmorgans and the reason why is because between tech and financials, about 35 , 36 of the overall s p 500. Thats not all of them reporting this week but bellweather names to come to market and give you a sense of the rest of the earnings season to go. Energy is important, guys, but still just about 10 of the overall s p. Yes, important. Maybe more as an indicator than anything else. Back over to you. Cant wait to hear from intel, especially after the microchip comments last week. Thank you so much for being here. With 50 minutes to go and the dow now moving again to the downside off about 60 points. S p giving up 11. Nasdaq off 19, scott. Coming up, germanys s. A. P. On the acquisition trail. A 8 billion deal in the back pocket. Are they done . The ceo speaks us next exclusively. Leon panetta warned c eed h could take down the financial system. Well ask if were tough enough on china. Well ask you that very same question at cnbc. Com vote. Get ready. N, then the bad news on email. Good newsfedex has flat rate shipping. Its called fedex one rate ®. And its affordable. Sounds great. cell phone typing typing continues woosh cell phones buzz, chirp and we have to work the weekend. Great. More good newsits friday woo ship a pak via Fedex Express saver® for as low as 7. 50. So if you get a trade idea about, say, organic food stocks, schwab can help. With a trading specialist just a tap away. Whats on your mind, lisa . Id like to talk about a trade idea. Lets hear it. [ male announcer ] see how schwab can help light a way forward. So you can make your move, wherever you are. And start working on your next big idea. And start working on your next big idea. Sometimes they just drop in. Always obvious. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. Welcome back. I would say the market is all over the place today but that would be an understatement. Dow jones industrials at least for the moment with 45 minutes to go are down. 3 . The s p is back below its 200day moving average yet again down. 5 . Nasdaq which was seeing the biggest decline rebounded and now lower, as well, by a bit more than. 3 and the russell 2000 up 1 earlier is now backing off that, too. Who knows what will happen in the last 45 minutes . It is anybodys guess based on how things traded today. I feel like the russell is the one to watch for 45 minutes. The chinese cant book that room for the waldorf just yet. The u. S. Officials reviewing the purchase. Theyre concerned about possible security risks and chinese sniper snooping because this is where the president stays during any visit to new york. I asked leon panetta about his concerns of the growing number of Cyber Attacks in the u. S. They have the capability to take down our grid system, our power grid, our financial systems, our Government Systems and virtually cripple this country. We have got to be working together, both the government and the private sector, in order to effectively confront the threat from Cyber Attacks. I think this is this is the battlefield of the future. Well, we want the know if you think the u. S. Is tough enough or champion thats hacking. Cnbc. Com vote. Lets also get i was going to say go ahead. Ladies first. Reaction with larry kudlow and contributor and former congressman barney frank. The battlefield of the future, barney frank. Do you agree with the concern here . Absolutely. I have a great deal of confidence in his judgment and it is obviously the problem. You know, much of the violence in the world is deplorable and regrettable. But its not a direct threat to the United States because of our physical might, because of our geographic position. But obviously, when you talk about this cyberspace, you know, those oceans dont mean anything. None of the traditional and a physical might is not enough. And so i would very much agree with former secretary panetta. I would add that one way we deal with this stop spending money on threats that dont exist. We still spend a lot of money keeping three ways and dropping thermal Nuclear Weapons on the russians. We can free up some money and some energy on this. So i very much agree that this is the threat and one of the ways we deal with it is to say, okay, we have spent too much and are spending too much on some of the past threats. Lets redirect the energy and resources. Larry, the question is, are the chinese at the forefront of that threat . Of course. If you listen to the fbi director james comey he said theres two kinds of Big Companies in the United States. Those who have been hacked by the chinese and those that dont know theyve been hacked by the chinese s. That the root of the problem . Of course, of course. I liked what kelly said. Lets get right to the waldorf. Im near it. We have to do something. You know . We know theyre hacking into our economic and commercial enterprises. We know theyre hacking into the defense. We theyre hacking into the homeland security. I dont agree with barney frank. This has nothing to do with the Nuclear Defense. This is an entirely different problem. We just indicted five chinese cyber hackers. Gootd for the justice department. For a change i defend mr. Holder. Now, what do we with that . Probably never get them in the court. We should take some economic sanctions here, keep their tell comes out of the United States. Stop them from buying up hotels and real estate. Whatever. Are you calling for a trade war, larry . Ill take economic sanctions. Thats what i call it. Until the chinese fess up. Until they come to the you know, they walked away from the noeshtding table. They walked away from president obama. At california in the meeting last june. So we need to take some actions. All right . Theyre not our best friend. So you both sound like you see the need for aggressive action on this. And barney frank, then, what separates your view of what larry kudlow is saying . Mainly larrys apparent desire to pick a fight over nothing. I dont understand when he said that he disagrees with me that this is not a nuclear threat. Thats my point. Resources are not infinite. One of the things i want to do is take resources we have been spending unwisely and unnecessarily on past threats unrelated to the current one and focus more on this. I very much think we should do that and one of the questions people raise sometimes, well, but arent we constrained by the fact that china has the debt . They dont buy it as a favor to us. Its the best place to put their money and theyre not doing anything about that without damaging themselves. I agree with larry. We should a lot tougher. I would disagree larrys suggestion is tough economic sanctions. You are saying more or less spend money on the problem. Are they mutually exclusive . Is everybody in a mood to pick a fight . Money is part of it. Im going. No. You need the public sector. All right. Ill put that aside. You need them together. I agree. Sanctions, yes. We have been tougher but the way to be tough is to go after chinese exports to america. I disagree that we should say if they want to buy the waldorf atore yeah and put money in the economy, say no. The president can find another hotel. I am for sanctions of prevent them and punish them for the ability to make money. If they want to assets in america and not strategic, assets, go for it. I usually do. Im a free trader. I would let donald trump buy the waldorf and not the chinese. Larry, theyre not doing larry . I want to take some actions and agree with barney frank about the debt. They buy our debt because its good for their own financial situation. And theyre not going to dump our debt because then the prices would collapse and theyd lose their family jewels. Barney, the only point i was making is i dont see a tradeoff here between our Nuclear Defense and this Cyber Security issue. I want a fence in between the two and i want to say to you, we need to have better self defense here at home on top of that. In other words yes. Our u. S. Government is not doing enough and the private companies are not doing enough to defend. But the tradeoff is that one of the things we do i agree we should penalize the chinese. I do think we penalize them being tougher on the goods. By the way, on pure economic reasons theres reason for that. They have a onesided view of trade. American companies are victimized and penalized and pirated. So we should be tougher on them on economic grounds alone. My only point is among the things you have to do is to spend more money to upgrade our Cyber Security and one way that you do that is stop spending money we dont need on threat that is have passed. All right. Ill agree to disagree with this. Barney, do you think yeah . Do you think that chinese really want the waldorf for what it is, for the real estate space . Do you think they want smithfield or for whatever port to get their hands on . Do you think they want any other American Company or is there some ulterior motive in any deal that the chinese do in this country . Well, i do think that the chinese better capitalists than they admit and some of what they do is to make money and the question is im not worried about them buying Smithfield Ham. I was a sponsor of the bill that set up a structure that committee on Financial Investment in the u. S. To block thing that is are strategically dangerous. But i dont think theyre going to be bugging peoples breakfast through the ham. And if put money here, i dont see how it hurts us. Im saying last word, larry . I dont think you punish them saying they cant give us money. Look. It is not about Smithfield Ham but about a shot across the bow. We never seem to do anything with china. You know . Lets face it. Theyre pirating our intellectual property. Theyre counterfeiting our own goods. They get away with murder. We go to the wto and nothing happens. We want access to the markets for so long. Larry, let me one thing you should do. We got to go, gentlemen. We got to go. Not let china shut down their able to sell to us. Mr. Frank and larry, bottom line, gentlemen please. The bottom line is that the people have spoken on the bottom of our screen and that tells ultimately the whole story is 81 of those who voted think were not tough enough on china so maybe more does need to be done. More. Including starting start with the waldorf. We have to go. Thank you both. Larry kudlow and barney frank. Appreciate it. 35 minutes to go before the bell rings. Dow industrials down 85. Nasdaq is down about a half of a percent. More than that. S p negative, as well. And selling off a bit more and whatever gains the russell 2000 had in much of this day, evaporating as we speak. A different kind of selloff than we saw with the nasdaq led one this morning. The market keeps changing. Well get into that more when we come back and jcpenney rising. Our Courtney Reagan has the skinny on the man investors are pinning the hopes on to revive the struggling retailer. Stay with us. You, my friend are a master of diversification. Who would have thought three cheese lasagna would go with chocolate cake and ceviche . The same guy who thought that small caps and bond funds would go with a merging markets. Its a masterpiece. Thanks. Clearly you are type e. You made it phil. Welcome home. Now whats our strategy with the fondue . Diversifying your portfolio . E trade gives you the tools and resources to get it right. Are you type e . Ghave a nice flight r bag right here. Traveling can feel like one big mystery. Youre never quite sure what is coming your way. But when youve got an entire company who knows that the most ontime flights are nothing if we cant get your things there too. Its no wonder more People Choose delta than any other airline. When diet and exercise arent enough, adding crestor lowers bad cholesterol up to 55 . Yeah crestor is not for people with Liver Disease or women who are nursing, pregnant, or may become pregnant. Tell your doctor all medicines you take. Call your doctor if you have muscle pain or weakness, feel unusually tired, have loss of appetite, upper belly pain, dark urine, or yellowing of skin or eyes. These could be signs of serious side effects. Are you down with crestor . Ask your doctor about crestor. When im working, things can get so hectic. So sometimes i need to find an easy way to express whats most portant to me. Like, with my crew, i use shorthand to talk to them and tell them what i need. And when i need to talk directly to my fans. But the most meaningful shorthand of all is the one i use when im about to drive x. Its an easy way to tell everyone that im about to drive. And i do it every time before i get behind the wheel. Use x to pause the conversation before you drive. Because no text is worth a life weakening here into the close of the dow 70 points. S p back below 1900. Art cashin indicating theres talk of sell orders on the close. Well update you. The nasdaq was the big laggard this morning. Right now the Airlines Getting hit, scott. Dominic chu with a roundup of the movers. Start off with auto retailers like lithium motors following a third and Fourth Quarter earnings warning. The stock down about 18 . Down 20 now. Near session lows. Taken the rest of the industry down along with it. Look at autonation and penske automotive, all moving to the downside and then tmobile shares lower on word that French Telecom Company Ended the plan to try to acquire the company. Those shares there down about 2. 25 . Tesla also losing ground for the second consecutive session as the rollout of the dversion failed to live up the hype on friday. The stock you can see there down by about 5 in the trade. And were going to end with Alnylam Pharmaceuticals soaring. Clinicals of a drug for the nervous system and up 21 . Kelly, scott, on todays trade. Back over to you. Thank you. For now. My next guest, Company Completed a deal for Enterprise Software company concur and if you do a lot of expenses you may know a lot about. Yes. Website once or twice. While striving to be, quote, the number one Cloud Company in the world. Joining us now is bill mcdermott, author of winners dream. Its great to see you again. Thank you, scott and kelly. The deal real quick. Its recent. Is the window closing do you think on m a by vir you of the fact the world uncertain . It could be. You know, we focus on what we will do at the asset after we acquire it and not so much affected by what the turbulence are at the time we do a deal. As we looked at this deal, we looked at land, air, hotel, food, entertainment and the network mashups such as saber, expedia, orbitz. Think about all of that in one digital network, frictionless commerce for the traveler. Talk to any Business Executive that travels today. They cannot stand the expense report process. I was just going to say. Anything to improve this, well be so grateful. Isnt it a pain . Yes. Isnt it nice if everything you do you do on your device and also have it updated for your cfo and erp system without any paper changing hands . Thats what concur does and i always say, we got to get more simple in business. And as Jerry Maguire once said, you complete us. So they kind of complete the s in similar pal for sap. We were having a rousing debate about the Security Threat with which china, other nations may pose to the u. S. Can you talk a little bit about as you guys move towards the cloud and the whole sector really does, what steps youre taking to protect the information in the cloud, how you respond to various governments may or may not try to infiltrate or legally access the information . We are fortunate in the sense were at enterprise systems, largescale, Global Enterprise systems for 43 years so the level of complexity in running the worlds largest, most complex Global Companies and keeping them secure for 43 years is something were very experienced at and we see customers want their cloud in their country and to abide by their standards and were also complying with that. So were kind of like when it comes to the cloud, have it your way. Where you want it, how you want it. In the format you want it. But always secure. Talk about the new book you have. Its about to drop. Winners dream a journey from corner store to corner office. There it is. Praise from some very high places. Jack welch, tony bennett, bono. Whens the message to get across in the book . Im deeply honored by their endorsement and friendship. I want the underdog to care about themselves and their dreams. As im walking in here, i meet frank on the floor. Frank says to me, im 31. Where were you when you were 31 . I was getting back from puerto rico on my way to Chicago Living my dream. He said i want to live my dream and write my book some day. I want every underdog to feel like their story matters. Did you feel like an underdog . Absolutely. I talk about my house burning down in long island and on the Street Corner and we had nothing. Not even a house to live in on that particular night. I came up. One of the first teachers said, mr. And mrs. Mcdermott, dont expect too much. A mechanic or a truck driver. Be nice. Hes a good kid. If you listen to the things that say you cant do something, holding you back, then you need this book. But at the same time, if people think, oh, probably its 1 in a million to make it, lets be cynical. This guy is a ceo. I get up and i have the winners dream. I fight for survival now just as i did then and thats what winnings all about. The book is filled with examples of different experiences where youve come into a difficult situation and been able to power through it. We have to leave it there now. Thank you so much for coming by here. Thank you. Thank you please join me on winnersdream. O winnersdream. Org. I hope i join you in the winners dream generally and everyone else feels the same way. Appreciate it. Pleasure. As i mentioned, markets are moving lower here. Just off 170 points on the dow. The s p off 22 to 1883. Well, the nasdaq was trying to rebound earlier from session lows. Morgan brennan will tell us whens driving at the action at the nasdaq and joined the other major averages down now 1 . Some sell programs have kicked in big time. We lost the russell now in the red. The pros weigh in on the chip sector and slumped to correction territory. Is this now a perfect buying opportunity or is something worse coming . Well be right back. The conference call. The ultimate arena for business. Hour after hour of diving deep, touching base, and putting ducks in rows. The only problem with Conference Calls eventually they have to end. Unless you have the comcast business voiceedge mobile app. It lets you switch seamlessly from your desk phone to your mobile with no interruptions. Ive never felt so alive. Get the future of phone and the phones are free. Comcast business. Built for business. All right. Welcome back. Looked like sell signals triggered some pretty big selling. Really, last ten minutes or so, the market started to fall out of bed. Bounced a little bit off that. Look across the board here and you have broad based weakness. I want to note, too, the dow if it closes where it is now, lowest close since august 2nd. S p would be the lowest since may 23rd. Closed at 1900 then. Watching a couple of people trying to figure out whats going on here. Cash futures about 1879 and going out below taking out the overnight levels. We close, traded better today after europe closed but lately its been sharply negative. Keeping an eye on it. Dow off 133. And dominic chu keeping an eye on things at headquarters for us. Hi, dom. I might be able to part of whens happening. Airline stocks. Theres a couple big ones in the s p 500 hit hard today. You would think with low oil prices theyre getting a lift but you have the ebola fears and fears of a Global Economic slowdown and taking the toll on the sector. Delta and southwest are big in the s p. United continental, american, hit hard. They may not be a huge part of the s p but as a group the single worst performing Industry Group within the s p 500 today. Back over to you. Thank you, dom. You heard our guest top of the hour say he thinks its a buying opportunity. We are seeing the nasdaq crushed worst than most averages. Morgan brennan taking a look at whats working and not in tech, morgan. Hey, kelly. Id say a choppy market in the nasdaq composite but it is a roller coaster ride. Down. 9 . Though still off the lows of this morning down about 9 this morning. The story is economy conductor stocks. The Semiconductor Index and the stocks down about 1 . And this is after last weeks steep selloff on microchips revenue warning. The Index Trading in correction territory from the recent september high of porl focus. Intel thats in the red ahead of earnings after the bell tomorrow. But were also seeing the selloff in socalled momentum stocks. Gopro walloped today down about 8. 5 that a company camera involved a ski accident. Other momentum names of tesla, priceline, netflix all moving to the downside today and we are seeing this as investors continue to move into more defensive stocks, even within the tech sector. Mega Cap Companies like apple and announced more markets for the new Iphone Models and facebook which j and p Securities Just upped the guidance and price target for are outperforming relative to the composite and note that apple is now trading in the red. There you have it. Exactly. Morgan, this as the vix spiked to about spiked relatively speaking. This is not a spike by a massive historical standards. As low as 13. Week or two ago. Hibernating. Definitely spiked. Relative to where it was. Doesnt it know were heading into the winter . Earnings are ramped up. Google, netflix soon and then the avalanche starts. What can we expect . Bring in mark mahani and should we be all of a sudden concerned about what tech will maybe not only the numbers but the outlooks especially after last week after noise out of the chip space . Well, we got two conflicting things going on. We heard from ebay announcing that spin of paypal. They reaffirmed guidance for the september quarter, so at least the overall demand trends should be intact. Thats a pretty large data point. But the negatives are whats coming out of europe. This is a very large market for all major large cap tech. You go google, priceline, amazon, ebay. All 30 plus so their revenue and profits out of the region and reduced estimates by 5 because of that fx exposure. Thats the head wind to the guidan guidance. Throwing in the stronger dollar, that had to take a toll, too. We were just talking about the dollar there. If the european markets really roll over hard and we go back into a recession there and a demand impact on the businesses, you will see further cuts to estimates. Thats downside risk. Gotcha. Larry, what about you . Where are you buying and selling . Well, i tell, buying right now is continuing facebook. You need to be in the evergreen models and thats why you look at facebook, continue to grow. I said last year its 100 by the end of the year. I theic to that. I think after the Earnings Call they blow it. Video advertising and instagram. Apple is going to continue to go up. I have it at 120 stock not just because of the great products and 10 million iphones stole but the enterprise and the ibm and the content and the pay so once again you need that evergreen model. Microsoft, ive been with microsoft a long time. Continue to buy it. Continues to go up. Ive been saying it for years while everyones saying it will go down. Up almost 20 this year. It continues to pop. They have a ton of cash. 85 billion in cash. So while all these other Speculative Companies are out there and people stay away from tech i like to stay with the main evergreen sticky models to continue to take off. A question, though. What about the comments of microchip and the other the way intel sold off on globally speaking the tech cycle is turning . Does that concern you . Doesnt concern me at all. If youre in the right names f. Youre in a lot of speculative names, worry about it. Speculative names . As it relates to chips . I mean, youre writing off completely what this guy very well respected or a company that has a supplies a lot of companies, what he said . I mean, whats speculative about the big chip names, whether its intel or qualcomm or the other names . I mean, you could have some issue with the chips out there. I dont believe what he said. I dont believe its fully hitting it down the line and a shortterm issue and a matter of belief. I dont think thats long term. Okay. Guys, thank you. Larry, mark, talk to you soon. Thank you. 15 minutes before the bell rings. The s p 500 down 23 points. And the vix is up. Tech investor speaking with us exclusively after the close. Wait until you hear his take on techs and where they go from here. Up next, jcpenney taps a home depot executive as the next ceo. Courtney reagan has the lowdown on the new boss. 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Its no wonder more People Choose delta than any other airline. Welcome back. Well look at jcpenney which should still be gaining ground. The retailer tapping a home depot executive as the next ceo an shares no surprise are hit by the market. Theyre negative by 1 . Still kind of outperforming. Courtney reagan joins us with a closer look at what this all means and when hell take charge and maybe, too, the timing. Right . Jcpenney had a big analyst day last week and made no mention to my recollection that anything like this was coming. Thats exactly right. It is the news that many did expect last week during the analyst day. The retailer has named a successor. Evp of stores for home depot joining jcpenney this year. Ellie son wont take over as ceo until august 1st, 2015. On that date, mike ullman is executive chairman. On wednesday, i asked him what the plans currently were since the company said it began searching for the successor more than a year and he said it wouldnt be appropriate to discuss it publicly and always been prepared to stay as long as necessary. He indicated that there werent plans. Im told that jcpenney would have loved to announce the new role at the Analyst Meeting an the timing didnt work out. They went able to. Read into that what you will. So far analysts are positive on ellison and spent 15 years before home depot at target and top contender for steve blake at home depot and and highly regarded and analysts were pretty positive on the news this morning and as kelly said, shares were higher before they were tuling down further by the market. Thank you. And for those falling along, the market down 190 points. The vix has jumped and get out to dominic chu for a market flash. One of the bigger decliners so far, Bio Technology stocks, another Industry Group hit hard here. The nasdaq bio tech index in the red and has been all day long and moving toward the session lows right now. Among the biggest losers are large cap names we talk about all the time. Biogen idec and tough day overall for those names among the worst performing Industry Groups here in todays session. Back over to you. Okay. Dom, thanks so much. A note here the dow and s p on track for the worst threeday loss since november of 2011. And many of the internals just within the market also are getting pretty ugly. Transports are heading for the worst threeday loss since september of 2011. Nasdaq for the worst loss since october of 2011. Art cashin just russell, mid caps, worst threeday loss. Excuse me. Im sorry. Great point. Art saying whats put pressure on equities heading into the close, theres significant amount of sell orders on the close. Those coming down to the tune of about 400 million and exerting pressure. As you can see, also possibly pressure rightly or wrongly ebola. Take a look at lakeland hazmat suit maker up 35 today. The airlines off to the tune of 5 to 8 for the huge cap names. And thats probably not helping. Off 192 points with about 10 minute toss go. Coming up, low oil prices great for nearly everyone, right . Wrong. Paying less at the pump doesnt mean youre not paying up elsewhere. Were back in a moment. Music. The getaway vehicle for all the confidence you need. Td ameritrade. You got this. 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 im going to retire. Not if. A single ember that escapes from a wildfire can travel more than a mile. That single ember can ignite and destroy your home or even your community you cant control where that ember will land only what happens when it does get fire adapted now at fireadapted. Org all right. Welcome back to the floor. The selling continues on wall street. The dow now down more than 201. Joining us is mike leer and bob pisani. Bob, i dont know what positive anybody can take from this. I dont think anything. This is not encouraging. No. And i think the real problem is we are dealing with an enormous xfactor here, the ebola issue. It is impossible to model for how this might affect the global economy. Hopefully little if at all and how it might affect the stock market. We see airlines down today on no particular news and vague concerns floating around on that. And thats problem. We cant model this very well and because of that people just step back a bit. The market was all over the place. Encouraging signs in the day to get an oversold bounce and then the rollover in the last 20 minutes. The dow down 220 points and fading fast. Yeah. Whats it tell you . Not a whole lot. I mean, theres been a this is building for a while. How we have been positioned is little bit high cash. Expecting something to drive the markets lower. But not really we hadnt determined a catalyst and now seeing some of that selling pent up for a while. Whats going to change the narrative a little bit . Hopefully something has to change sentiment. Earnings will change things a little bit. This point, so Much Negative sentiment built in. Oversold sectors. Energy in particular. No bounce today in Energy Stocks at all. Had a bounce in small caps. Fell out of bed. Hold the thought. You are coming back and closing countdown after the short break. After the bell, the cdc doesnt know how a dallas nurse got ebola. We are live at the hospital. Dont go away. [ male announcer ] your love for trading never stops. So if you get a trade idea about, say, organic food stocks, schwab can help. With a trading specialist just a tap away. Whats on your mind, lisa . Id like to talk about a trade idea. Lets hear it. [ male announcer ] see how schwab can help light a way forward. So you can make your move, wherever you are. 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This is the iwm, the russell, the small cap etf and load of selling toward the latter stages of the day. Momentum names shaken, as well, today. Netflix, gopro and tesla. Questions about ski accident relating to the camera maybe adding to a little bit of selling there. You get the point of them and the big momentum names selling off considerably. Lets bring in mike lear, bob pisani. What changes it . What do we need to see . Changing the narrative and i think it is earnings. What we need to have is u. S. Based corporations to say that the economy is getting better, we are seeing orders improve, revenues improve overall. We havent heard that yet. Great numbers from cocacola last week. I want to hear about long growth. Im a little worried long growth isnt as strong as people think. Just of the concerns building up, you have the stronger dollar. Throw that into the mix with ebola. A number of things. Yeah. Theres a lot of concerns out there and a lot to be positive about. I think you have seen the picture for consumers improve a bit. You have unemployment lower. You had gas prices, oil prices lower. So i think thats a good thing for the consumer. Okay. That does it for us. Second hour with kelly begins now. Thank you, scott. Welcome to the closing bell, everybody. Im kelly evans. Wow. What a day. Feels like seven days on wall street today. Very different picture in the close from what we saw midday, from what we saw at the open. Here, in fact, is how were finishing another rough session across wall street. Most of the damage done in the last basically 30 minutes in fact. The Dow Jones Industrial average shedding 223 points at the close. The nasdaq losing 62 points. S p off 31 to 1874. And even the russell, the small caps, which looked like they would stay in the green today and maybe lead everybody higher, instead turning lower closing lower at a level about 1049. What to make of it . Lets bring in todays panel. Joining me now steven wood, carol roth, and kenny pulcari fresh off the floor. Also with us, guy adami. Kenny, was it sell orders . Technical levels. Breaking 1906 this morning on the s p, it was struggling all day with what to do, what to do. Sold off, rallied back and then hit resistance and just like friday as we got into the last hour of the day you could feel the momentum. Right . You could feel the pressure on the market and closed it right on the low side. Some guys describing it as an emotional selloff into the close and may have been prompted by ebola. A nurse with ebola causes every stock in the universe to go negative . No. I hear you. Listen, negative, they throw every negative story. I think its much more technical and heres the other problem. Once it starts to break the technical levels, the buyers know the al go rhythms and needs on itself. So it becomes a self fulfilling prophesy. Any good news in this, guy, is it to hit the key levels and people look for the bottomfeeding opportunities . Maybe. You know, you when you say things are going lower and ive been in the lower camp for a while, you know that. I do. People accuse you of fearmongering. First of all, it is not the case. Second of all, the opposite is just as bad if not worse to be honest with you. The glib people that basically tell you to buy every dip. You bet carol on since the spring telling you worried that the divergence leads to this and now you have it now. I will say that i was in that 1904 camp and if, you know, six months ago if it traded down to that level, the open we had today, the subsequent rally that we had, this market would have closed 20 handles higher instead of where we did today and feels different. I think 1863 is huge support. And 103 in it iwm. Carol, what does your crystal ball tell you now . Ill give props back to guy and been beating the same drum and we have been getting beaten up on it. Im comfortable about this. Sort of similar to guy. Im not really particularly searched. I think that what you have to look at is the duration and particularly earnings season. I think we are going to see a lot of volatility. A lot of bouncing up and down. The bar is moved lower so i would imagine were going to see a lot of quote unquoter andings beat and drive everything up temporarily higher and fear enough in the market to see it bouncing around up and down. Lets talk fear and fundamentals. Fundamentals have changed. Worse on europe. Understandable, fine. What about the fear and, look, again, we have a series of ebola headlines late in the session. A spike of shares of lakeland making the hazmat suits up 35 or thereabouts today. Airlines, like delta, off 8 today. So is that, if its a fear versus fundamental selloff, what does that tell you . Thats part of the part we do is figure out is there any there there . The fundamentals in europe getting bad and bad news good news a few weeks ago. The European Central bank to get very, very active very, very soon and they will. Youre seeing separation of draghi and the european leaders. I was at the bank of japan presentation last week. The japanese will continue to printing money. The europeans will begin it and puts off the Federal Reserve maybe a little bit as the fundamentals are not improving dramatically so i think the fundamentals havent shifted all that much in the last couple of weeks. When you get the fear, they talk about the ebola being the fear, its those kinds of situations so, so short lived, right . Doesnt affect the longterm investment thesis at all. Look at all of the fear that we have had over the past couple of months everything thats gone on with ukraine and syria and iraq and isis, youre going to tell me that ebola is the the one to take us down for the long term . I dont think so. No, no. I agree with you a thousand percent but once the technicals broken, it feeds on itself. Until guy said 1860, wherever you think it is. I see guys not talking about 1830. So what about that . You saw the action today, especially i keep coming back to the airlines and huge names with huge declines. Is this a reflection of the fact its columbus day and less liquidity of another day . I think thats part. Listen. I want to dance around this. I dont want people to label me as a wacko but you have to believe too late. The headlines are not they get worse before they get better. And it doesnt matter how the disease is transmitted. If people are scared, whatever it is, getting in the subway, their car, a plane, thats going to affect behavior and then it starts to feed on itself and, again, im not saying it should happen. Im saying thiss what can happen. Understood. I cant believe that the headlines can get better before they get a little bit worse. So weve been asking for two and a half years when would we have a correction . We havent had one and that historically speaking is what investors need to take into account. Where we stand after the brutal beginning to october, down 7 from the intraday highs on the s p. Against the backdrop, stay right there. Ben white now from politico for his thoughts on this volatility. And, ben, you think it could impact the midterm elections coming up, too. It could. As my friend carol said, we are bouncing around here like crazy on the dow and the biggest problem of democrats in the midterm is economic anxiety and the fear of moving in the wrong direction. Your poll had 24 saying they trusted obama on the economy. Nobody votes on the stock market but adds to the sense things are slightly out of control. People not seeing the wages going up. Thats trouble for democrats in vulnerable incumbent seats like louisiana, north carolina, where theyre really just trying to hang on in the last couple of weeks of this campaign. A crazy mrkt in addition. Thats a recipe for incumbent losses and matters. Not directly. Part of the context. For those looking for essentially whethers there a gop congress that comes out of this, larry kudlow saying if that happens, we get Corporate Tax reform in the spring. We know that the senate needs a sixseat pickup to switch to a gop heavy assembly, if you would, are you saying that this volatility makes that more or less likely . I think more likely. At the margin. It is not the thing that decides the election. But it is one more factor adding into what is a very difficult environment for incumbent democrats saddled with an unpopular president and people anxious about the 401 k s that hurts incumbent democrats and more likely to get that sixseat swing to republicans. I think if the election were today we would get that. Not as optimistic as larry of Corporate Tax reform. Few are. Im not. Im down on washington in general. Theres a better chance with a Republican Senate. Ben, you know how much i love you an adore you but im going to say that the market has absolutely zero affect on whether the gop or democrats take the senate. Just so absolutely wrong. No. No. You are absolutely wrong here. The people are voting with their pocketbooks and what is happening on main street, most people have no idea whats going on on the stock market daytoday basis. We could go up 1,000 points and the gop will take the snth. I think they will but i think people do, they see the headlines on cnbc, they see the evening new quhs the market is going crazy and doesnt mean theyre involved in the market or day traders but consumer is an overlay and i dont think theyre that far apart. Its in a context of anxious nation. Anxious america. Its an excuse and an excuse in case the democrats lose. We have a month to go until that event, steven. Yeah. I think that the likelihood to get structural tax reform is very, very low and where are some of the issue that is theres overlap of the president and gop congress . This happened to bill clinton in the mid1990s and there were things that were agreed upon and ask him where does that go right now . What do they agree on . Immigration reform is one big one where if theres a Republican Senate and they can get something to the president s desk hed want to sign it. Very muches want to do Immigration Reform and the problem is 2016 republicans trying to stop anything comprehensive and two things to look at is Immigration Reform and tax reform with a Republican Senate and both of those in play on the table. Not by any means a done deal on either but do some business and probably good for the economy i would imagine. We have to leave it there. Guy, before you go, a word. Again, is this the kind of pain on the street activity now with this lateday selloff that makes people wade back in . Everybody and you have had people on the show, everybody wants i want the dip. I want the market to sell off making my list. Making my list. Looking for the selloff and then get it and everybody gets in their clam shell and this is what people are praying for. Right . This is the opportunity theyve been waiting for so take advantage of it. I think printing 1860 in the s p and bounce. Tremendous Trading Opportunities if youre so inclined and point one thing and out beat this drum now for a while. Dont discount everybody and their mom saying rates are going higher and telling people theyre going lower and i think they continue to go lower because of deflationary press e pressures globally which is not bullish. Well, we cant wait to see the fixed income markets tomorrow. Please note the heavy sarcasm there. Guy, thank you for being with us this afternoon. Catch more guy on fast money at 5 00. Its a new week. Just today after sailing in a sea of red late last week, where can investors find safety and a profit . Roger mcnamee is about to weigh in. Stay tuned. Are all the green lights you . No. Its called grid iq. The 4 51 is leaving at 4 51. They cut the power. Itll fix itself. Powers back on. Quick thinking traffic lights and self correcting power grids make the world predictable. Thrillingly predictable. Welcome back. It was a pretty tame day on wall street until the last hour. Even last half hour. Thats when stocks really began to plunge and bob pisani joins us. All anybody wanted was to move sideways to build some kind of base and started out okay and then last hour hit. Take a look. It was pretty tame up until that point. And then the volume started to pick up in the last hour and we just drew more than 160 points in the last hour. A lot of this on vague concerns of ebola. Just very difficult to model what might happen. Hopefully very little. But thats the bottom line. Travel stocks, delta down notably. Some of the use ships down 4. 5 there. Lakeland, never on anybodys radar, makes hazmat suits. Up dramatically today. Not a typo. 47 increase in lakeland today. Looking for oversold bounces in several areas. We talked about the russell all day. Iwm for the russell 2000. A nice move up on heavy volume and then kind of fell apart. Same situation with the xpo. We never really got the bounce we were anticipating there even though oil did try to rally in the middle of the day. See it closing at the lows of the day. Similar with semiconductors. Another very oversold group here. Same situation. Never really rallied and just moved drooped lower on the end of the day. We want to look at the theres the xxd and pint out the vix here. 24 and change here, folks. This is a twoyear high for the v ix. I said it many times, over 20 i start to Pay Attention. Im paying attention right now. Kelly, 3. 4 billion shares i believe that we just did. We are on the heavy side here. I have to get the final numbers here but on friday 4. 5 billion shares from the nyse altogether. Thats the fifth highest volume day of the year and definitely getting volume back. Remember the light volume days . Gone ire a gap lower. Bob, stay right there. We want to bring guy adami with the panel. Kenny, we were talking about volume. The fact there was such high volume on a day thats a holiday and people out and goes to the angst and anxiety and other side of the fence like guy was saying before, this is an opportunity for the longterm investor. For every seller theres a buyer. There are other people on the opposite side of the trade putting trade on and believe what guy and they were saying. Back to the ebola thing. What did happen towards the end of the session today, reports of potentially a plane in boston where there was a hazmat crew looking at a potential case of ebola. Whether or not theres anything that the plane turns out to have involved or whether just the psychology of the selloff tells you something and shouldnt it typically tell you thats the kind of scenario where people are overreacting . Absolutely. And it feels like capitulation and what you need. You really need like theyre throwing everything out including the kitchen sink to find the bottom and it didnt i mean, getting to feel like that, certainly the up tick of volume makes it feel like that. Guy made a relevant point and wont make you repeat but about the fact, look, if people react to the headlines in a way that does impinge on activity, economic activity, you can understand a bit of the pressure but, steven wood, theres a fundament fundamental concern at play, too. I think so, too. The battle for the previous generation is inflation and everyone has an intimate experience especially over 65 years of age and the battle for this generation is deflation and looking at the global economy, growth rates looking at Central Banks to do, the role to play, we have to adjust Investment Perspectives accordingly and calling this for years the squeeze play. The Federal Reserve and the bank of japan and the European Central bank and the bank of england theyre going to conspire to squeeze yield and create a different investment dynamic. You need to update your investing strategies, lower growth, lower inflationary environment. And adding volume; not just equities. Thats right. Take advantage of that. I think the bigger issue, i think everyone feels like europe is slowing down. Asias slowing down. That america may be the one place that is going to be battling its way out of it. What im looking for heading into the middle of earnings season, the earnings numbers, the Forward Guidance and going to be the tale thatlets us know if we bounce out of this or not. If we get Forward Guidance, companies arent having the confidence, that acts on top of these global issues going on. Go ahead, guy. For the russell 2000 dropping because thats a u. S. Based largely u. S. Based company so most of them less than 15 of their earnings from overseas so that should be doing better and the fact its snot really a little bit disconcerting. That was bob. Sorry. Guy . Ive said this to you before. Earnings Growth Without revenues growth is not growth at all. It is Financial Engineering and i think we would admit is going on and the funny thing of oil and wanted to discuss that quickly, we race and rant against the speculators when oil from 80 to 120. Speculators, speculators, speculators from 120 to 80 which its done, nobody says a word. And dont for a minute disdoupt fact that oil going lower is not nearly as bullish as everybody makes it out to be. Its this tax break for the consumer. Absolutely agreed. I think it is bad. This past decade, oil and equities and growth positively core lated and hope its different now and thats what were pinning our hopes on. Guy, thank you for real this time. And bob, really appreciate it, as well. Crazy close there. What should investors make of the market and especially tech . Will people be holding off on investments . Startups even. Well ask roger mcnamee. And what is the bigger threat to the u. S. Is it ebola or is it isis . The bigger threat to america is isis. Frankly. Than ebola. Isis is out there and its not going away. Is tom brokaw right . A former top military official has his own ideas. Find out whats keeping him up at night coming up. When im working, things can get so hectic. So sometimes i need to find an easy way to express whats most portant to me. Like, with my crew, i use shorthand to talk to them and tell them what i need. And when i need to talk directly to my fans. But the most meaningful shorthand of all is the one i use when im about to drive x. Its an easy way to tell everyone that im about to drive. And i do it every time before i get behind the wheel. Use x to pause the conversation before you drive. Because no text is worth a life welcome back. Markets continue to be volatile today closing down triple digits again. The dow down 1 for the year. Where do stocks go from here and where are the best opportunities . Well, with us now in an exclusive interview is roger mcnamee. Roger, great to have you with us. Do you think that what microchip said about the Semi Conductor cycle broaddy speaking turning, coming an end send a chill up your spine . You know, i really think the way to look at the tech sector is look at the high teens of a percentage of the economy so its not a single thing. There are a lot of things going on within it. And the part that microchip touches is very broad duh not the whole definition. The truth of the matter is that the tech sector today is its a very large, very mature sector and the good thing is that stocks like apple and google are really inexpensive so you dont have to believe in an industry wide recovery to find places to invest today. I guess the question, though, is not about a recover ri at this point but whether things having gotten i would say frothy, exuberant, but, you know, we have gone well past recovery, havent we . I guess thats the concern here that this is telling us about some deceleration. Lets be careful. I mean, 19 billion acquisition of whats app maybe a pretty reasonable deal. The thing that concerns me more are valuations played for uber and the like, and there i do think things are totally out of control but again, its not a monolithic market. My view of the thing is that were correcting right now for really obvious reasons. Chaos has risen all over the world. The republicans in congress are trying to win news cycles and as a consequence have done things like cutting the funding to get rid of ebola. We had a tenyear program for ebola and they undercut. And thso, to me, until we see everybody on the same side of the ball, its hard to be confident in anything other than tbills. You know better than anybody its uncertain out there and people in washington use it. Im frankly confused to hear you say it. Im serious. Whether its putin, whether the middle east, going on with ebola, whats going on with european economies and going on in chinas economy, there are plenty of reason to be concerned and climbing that wall of worry steadily for two years and we shouldnt be shocked. I mean, you know, having a correction now seems like a totally reasonable thing to do. Its interesting the point you made, as well, about the extent of the frothiness building in the Public Companies and getting the price discovery. Steven wood, focusing on the publiclylisted companies, perhap that is the problem. I think so. Were doing work on valuations, u. S. And globally. I would ask mr. Mcnamee, what are his views on valuations . Its a component of what were seeing right now. It depends where you look. Apple and google trade meaningfully below the multiple of the s p 500 with enormous cash generation and lots of growth. I distinguish it from the s p itself largely in the game of moving, you know, peas around underneath walnuts and doing tax games and not real growth and i think that part of the s p is a very hard thing for investors to be enthusiastic going forward. This is carol roth. I have a question about the government since you brought it into the discussion here. It seems to me that the government is sort of in the opposite camp of technology. Technology streamlined everything. Made everything more transparent and we have a government thats moving in the opposite direction. When will we see that convergence and tech effect get into the government . Whether regardless of the side of the aisle youre on, that seems to be the bigger problem is the fact its so big and bloated and cant ploouf as quickly as we need it to. Technology cannot overcome the active undermining of our economy by one of the political parties. I mean, thats the real problem. You know, as long as one party believes that either party believes it gains advantage subverting the economy, we have issues. To me the remarkable thing is globalization allowed u. S. Companies to put up good numbers in the face of some of the worst governmenting we have seen in my lifetime and again you can accuse the president of one thing, accuse the republicans of another thing but the truth is that the republicans have been they have made a choice and, again, its america. People get to make choices. I sit there and say, wait a minute, i dont need to be long stocks while this nonsense is going on. Ill add before i hand it over to a panelist i dont think that its the republicans or the democrats. I certainly think that both parties have a hand in the situation. Come on. Thats ridiculous. Thats ridiculous. This is going on for only one side is undercutting the government. Deficits going on and inefficient use of capital, as somebody that puts capital to work, im surprised to hear you say capital is being put to use efficiently by one party than the other. Im not. Its impossible for the government to put capital to work efficiently if the two sides arent laying together. If you take an issue like ebola, it is simple. Infrastructure. You have to want to do it. If one side doesnt play with the other, you wont have a productive government. I agree with the government right now is a horrible misuser of capital but thats because one party made that a strategy. I respect that. Thats how they think they will win. As an investor i have to make choices based on the consequences on that and ignoring climate change, ignoring ebola, those are not healthy things for us to do and those are not going to be good for stock prices. You know, this is steven wood with russell and i like talking policy but not politics and bringing you back to revenue. We have been saying for a while now at russell this is a topline driven market. No fig leaf on the top line and that security stock, revenue going to drive by the years end performance within the market and if you could have some observations on that. Where do you see the opportunities, roger . Im a huge believer in longterm fundamental investor and the tech sector offers real windows. My focus has been on apple, google, facebook and alibaba. These are four incredibly successful and incredibly well positioned companies with real growth going on and in each case, the growth rates at apple and google will not be huge but the stocks priced in a way you dont need them to be huge. Facebook and alibaba larger rates of growth and more risk, more volatility. I would stick to those. Getting away from thatyou know, you are subject to a lot of forces you may not be able to anticipate. We have to leave it there. Kenny is uncharacteristically quiet in this politics. I tried to ill make one observation. Im a view and opposite of his. Trying to pretend politics doesnt matter wont solve the problem. This feels like an awkward dinner party. Roger, thank you. Thats why you brought me on. Yes. It is. Absolutely. We appreciate it. Well air it more fully going forward. Ebola fears adding to the anxiety in this market. A nurse in texas that treated the first patient to die in the u. S. Tested positive for the virus. How exactly did she get ebola and does the cdc really know how this deadly virus spread . Well be right back. In a world thats changing faster than ever, we believe outshining the competition tomorrow quires challenging your Business Inside and out today. At cognizant, we help forwardlooking Companies Run better and run different to give your customers every reason to keep looking for you. So if youre ready to see opportunities and see them through, we say lets get to work. Because the future belongs to those who challenge the present. How did a nurse in dallas contract ebola . The head of the cdc doesnt know. Mega terrell is in dallas. Whats the latest, meg . Reporter hey, kelly. Thats right. The Health Care Worker was involved in the treatment of Thomas Eric Duncan who passed away here last week in dallas. Hers is the first transmission of ebola here in the United States. Health care monitoring others saying its possible others were exposed and more cases an ennot known exactly how she was infected. But they are looking at a couple Different Things and saying when he received intubation and dialysis and could have been potentially high risk procedures and removal of personal protective equipment could have been a time when somebody was contaminated. Looking at ways to make treatment and care of patients easier in hospitals saying that the Team Involved should be kept as small as possible. Pru procedures limited to those essential and one person make it the only job to oversee Infection Control at hospitals. Cdc director saying every hospital needs to be prepared to diagnose ebola patients. The single most important thing for every other hospital in the country to know is the importance of taking a history of travel. That if someone has fever or other symptoms that could be ebola, ask where they have been in the previous 21 days. And if its to liberia, sierra leone or dwi kneguinea, consults and well go from there. Reporter so a lot of questions being raised of preparedness and the Texas Nurses Association saying there are a few things to do to help if they present with a fever, make that clear right away and they should also say whether they have traveled to anywhere outside the country. Kelly, back to you. Yep. Sounds pretty obvious, megan. Stay right there. If you would. Bring in the panel to discuss and remind people again looking at what happened in the market today, we cant rule out that some concerns about this spread in the u. S. Had something to do with the lateday selloff. And the plane in boston, headlines create the anxiety. Is this happening in france, germany, and italy and spain . Are they dealing with this the way we are . We havent heard about it s. That causing even more global angst . And is that the mentality, kenny, of the people around here . In other words not just about what you do know and the information represents about howl that you dont know. I think its the phrase of aversion behavior. I know that the imf came out saying within africa the cost is going to be about 32. 6 billion of people not going to school and not going to work, not going about their normal routines because theyre afraid of what might happen here. And thats the potential cost here in the u. S. And we need to be on the lookout for. And because theres misinformation out there and the true costs really could end up piling on. Steven, give us context here of typical market reactions. Is it do you expect further weakness . Like a wildfire . Market weakness until theres clarity and been contained or too much emphasis on one virus . Theres a report in spain and the United States. So i think right now it could be that, you know, its a contained situation and markets are reacting to it because they price in worstcase scenarios sometimes. Going back, look in the three legs of the stool, corporate earnings and revenues and the macroeconomic performance globally and the United States, thats what people need to look on. Railings of a rope bridge, keeps you center. Meg, it is interesting. Not as if ebola came to the u. S. Right after it first started to spread in west africa. It is many, many months now. It would seem like the first thing the cdc would do is simple procedures to deal at the local level but when we had Michael Leavitt on the program last week, he said you have to rely on local authorities and not national ones. Reporter theres been a lot of questions of who has control here. Cdc defers to the states and in the communications, sharing the stage in texas. Not trying to assert themselves and folks are saying its time to do that. I was talking with Scott Gottlieb now with the American Enterprise institute saying regional hospitals need to be able to take in patients because you cant every single hospital to be able to care for patients. Tom frieden saying they need to diagnose and isolate and can every hospital be expected to care for patients here in the United States . Maybe the cdc needs to be able to take more control. And finally, meg, what is the status of the nurse there where you are in dallas . Reporter sorry. Could you repeat that . What is her status, the latest that you can tell us. Reporter we have heard that she is currently in stable condition. Okay. Well be following that throughout the week. Reporter were also hearing and getting some reports of her name, i believe nina pham is her name according to a family friends. Hope that she is able to do something with the help and some of these drugs to survive it. Mega terrell in dallas for us, thank you, meg. Just working oornd the clock to follow that story. Ebola gripping america. Tom brokaw saying we have bigger problems. The bigger threat to america is isis, frankly, than ebola. Isis is out there and not going away. Up next, retired air force colonel layton joins us with his take on the isis strategy. And investor and shark tank star mark cuban likes to fancy himself of an expert on how to help the economy. Capping the Student Loans and could be on todays hot list. Stay tuned. [ male announcer ] your love for trading never stops. So open an account with schwab. And when a market move affects, say, a Cloud Computing stock youre holding, we can help you decide what to do. With tools that help you see how market activity is affecting your positions. So when the time comes to decide whether to scale in or scale out. You can make your move, wherever you are. And start working on your next big idea. Im spending too much time hiring and not enough time in my kitchen. [ female announcer ] need to hire fast . Go to ziprecruiter. Com and post your job to over 30 of the webs leading job boards with a single click; then simply select the best candidates from one easy to review list. You put up one post and the next day you have all these candidates. Makes my job a lot easier. [ female announcer ] over 100,000 businesses have already used zip recruiter and now you can use zip recruiter for free at a special site for tv viewers; go to ziprecruiter. Com offer2. Welcome back. You could have tuned in all day and still almost missed the selloff at the close. Just even in about the last 30, 40 minutes of trade, the dow giving up 223. The s p 500 hitting some key levels. Volume was reasonably high. The vix jumped above 23 and adding to the angst in this market is the isis threat. Now knocking on baghdads door in iraq. In fact, on meet the press yesterday, the topic is ebola but veteran tom brokaw shifted it to isis. Listen to this. The bigger threat to the u. S. Is isis than ebola, frankly. We have a system in place. A few deaths. It is a big, big crisis in west africa. It is the reality of the global world in which we live, but isis is out there and its not going away and the system that we have in place for dealing with it is going to take a long time. Lets get reaction now from retired air force colonel layton with the panel. Colonel, welcome. Thank you so much for being here, and do you agree with tom brokaw there . Great to be with you. Yes, kelly, i basically agree with tom brokaw. A big thing you have to look at is a disease like ebola is something that were working to contain. We havent really found the formula yet to contain isis and thats the big difference. What about the current strategy . Is that helping or hurting do you think . Oh i think the current strategy against isis is definitely hurting. It is not working and not a full use of the military power or economic or diplomatic power against isis and difficult to implement strategies of this type but it is a very really poor response and its a response that doesnt involve what i would call the whole of government approach with the defense department, the state department, treasury, all the other places that, you know, have something to do with containing terrorism and put them altogether and we really havent done a coherent job of that in my opinion. Come yell, first 0 of all, thank you for your service. But i also want to ask you, whens the right strategy, particularly in that area of the world . Because it seems to me once we contain one Group Another one pops up. We saw it with al qaeda. Now isis. Could be somebody else down the line. How can we contain this evil in this part of world and wipe it from the face of the snert. That is 2 really difficult question and those are all great points. One of the real issues we have here is containing the way in which they do their propaganda so you have got young people who are constantly bombarded by this kind of stream of consciousness propaganda from the isis group and its a very difficult thing to counteract if youre not present there. I was advocate a presence in the region. Doesnt necessarily mean a military presence but a diplomatic and Economic Engagement in the area and it means providing hope to a generation of muslim youth that really doesnt have that hope right now. Wait. Well, colonel, as well, i thank you for your service to the country. Thank you. I should say part of the hope is basic things like education and the quality of life and fresh water and the ability to improve your life because the problem is in that part of the world there is no hope and so, therefore, they get dragged in as children and they hate america and they hate anything westernized and its this poison that infects their brain and cant get rid of it. Thats the whole thing. Excellent, really an excellent analysis into your question because what were talking about here is changing the education of millions of people in the muslim world right now. There are elements of the muslim world that have prowestern and also significant elements as we see with isis and al qaeda, and a whole bunch of other groups, that doesnt have that entity, that real desire to go after a good, coherent lets go after the facts, lets be rational about this type of educational system and something that requires not only our help and requires a look at within the arab world as well and thats a very difficult thing to achieve and can happen engaged in the region. Steve wood here. I, as well, thank you. It strikes me that a distinguishing characteristic is financial access. And access to wealth, what would you recommend there . In a world, colonel . I would say cut their supply. Cut the way in which they can get money. You know, of course, when you rob a big central bank like the bank of mosul, there is a huge flow of gold and other elements that the isis forces were allegedly able to get. Gives them a lot of money. And thats the kind of thing that you have to prevent as much as you possibly can and cut it off at the source. Colonel, thousand. Appreciate it. Come back. Lots more to discuss. You bet. Straight ahead, were going to head to the cnbc website and see the most popular stories on the hot list. Be right back. Sheila you see tl control . You see this right . Its 80 confidence and 64 knee brace. Thats more. Shh. I know thats more than 100 . But thats what winners give. Now bicycle kick your old 401 k into an ira. I know, i know. Listen, just get td ameritrades rollover consultants on the horn. Theyll guide you through the whole process. Its simple. Even she could do it. Whatever, janet. For all the confidence you need. Td ameritrade. You got this. When im working, things can get so hectic. So sometimes i need to find an easy way to express whats most portant to me. Like, with my crew, i use shorthand to talk to them and tell them what i need. And when i need to talk directly to my fans. 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For drivers with accident forgiveness, Liberty Mutual wont raise your rates due to your first accident. See Car Insurance in a whole new light. Call Liberty Mutual insurance. Market corrections. Ebola, isis, all news making stories these days. For more on what is on the hot list, allen wasser joins us. Markets, markets and then markets. Especially with the afternoon going the way it was, market coverage is just blistering up the website right now. Right now we put out an explainer of what a 200day moving average is. Because, you know, we throw these technical terms around sometimes and not everybody is up on it. Thats doing real well. Then we have a piece from jeff cox. He is look agent the super spike almost in the vix. It has gone up 74 in the last three months. Now thats feeding into peoples fears about which way the market is likely to go. And then finally we also have the interview up from this morning. Peter thiel, the wellknown venture capitalist out of silicon valley, he was on our air on squawk on the street. We put his interview up there. People really focusing on his comments about how he sees a massive government bubble in the bond markets and what thats doing. The tech guy turns around and points a finger back at the government. I love it. Exactly. 130,000 people have already read that story. And its still burning up there. So all that blending into basically a big market theme today. Maybe a little help from drudge. Thank you, allen. Good to see you. Earnings season under way. Csx, intel, wells fargo all out tomorrow. Coming up next, well ask the panel what theyre watching and what they expect to see. Ce. Turn ocean waves into power. Design cars that capture their emissions. Build bridges that fix themselves. Get more clean water to everyone. Whos going to take the leap . Whos going to write the code . Whos going to do it . Engineers. Thats who. Thats what i want to do. 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Im saying each of us should write an explainer piece because there is so much misunderstanding about the market right now. What do you think people most misunderstand . I think they confuse the economy with the market. And earlier the guy talking about the bubble in treasuries is not the same thing as the national debt. Take a breath, go back, look at the fundamentals and you understand where the cycle is or the economy is. You want to understand where valuations, because valuations ultimately are very important. And what youre talk about, kenny, on momentum, how do shorter term dynamics affect. But if you put those three together, that gives you a medium to shorter term ability to navigate some choppy waters. And kenny, about these terms, momentum, all the technical trigger, the key levels that we always talk about. And thats something that people dont understand. Once you break technically, once you start breaking the key levels of support, the momentum guys, the algorithms kick. In we broke the support, you need to sell x . The computer triggers. You need to sell x to protect the portfolio. Its kind of an argument. Im more of a longterm investor so im not as into the trading. Im looking out for the longterm. So for me as were, again, getting more earnings out, im going to be looking for ward guidance. But im also going to be looking at Capital Expenditures, in terms of where were going and will we see some growth. Im looking to see if well have Capital Expenditures and given the way that energy has been moving and some of these big capital intensive industries, thats an area of concern for me. To remind people, the cap ex cycle, the Energy Sector is usually the biggest dollar spender on cap ex. I think people are going to be surprised with this earnings quarter. I dont think its going to be nearly as negative you would expect when you look at what has happened in the market the last couple of day. And what about intel . I know we have jpm and wells fargo and i know theyre important. But intel the most important one right now. I cant talk about specific stocks. Its all about the top line right now. What we do is we marry the shortterm with the longterm you. Do have the ability at the margin to manage risk and return. But you want to keep your eyes on the longterm. I think the top line has been important. Ive been pounding the table on that for at least a year, if not longer. Its been important. But i dont think that even right now with what is going on with the fed, the fact that theyre probably not going to move rates, i dont think that thats what most people in the market grog to be paying attention to. Look what has happened over previous quarters when the top line wasnt growing, but earnings kept beating because it was Financial Engineering. It will be important next year. But its not going to be important this quarter. Watch janet yellen. Right. Just focus on dr. Yellin. Were going hear from her on friday, i believe. We heard from Stanley Fischer over the weekend, who is the number two. He the vice chair of the fed and he did indicate there will be more responsive to a deteriorate rate. He said that today, everyones said the same thing. Talking about trying to slow the market from falling out of bed. And the dove have the numbers on the fomc. Especially heading into 2015. A couple of other things briefly to watch. The dollar is going to be one. Right. That one, again, sometimes you have to look against the euro or the yen, sometimes just the tradeweighted index, but thats been pushing things around quite a bit. Ford a couple of weeks ago came out in front of their earnings, here is what were concerned about. This is why they punished the stock. But less so than they would have punished it had they kept their mouth shut. The interesting thing is the stocks that are as sensitive to the dollar moves, the ones that are doing most of their business here in the rust the ones that have fallen out of favor. Thats why we were thinking the russell would get its mojo back. And it looked until the last half hour like it would. And again, to remind people, there might have been some ebola concerns contributing to the selloff. Does that make you how does that make you feel about the fact that we performed so badly at the close . I think as the market is a looking for Bad Information to be Bad Information right now. But finger we go back, revenue gain, look at the fundamentals. And for those who are moving their Interest Rate hike time period up on the fed, the dollar strengthening, what is happening in the corporate sense as you mentioned right now, i dont know that the fed is in a hurry in a low inflationary environment. Well leave it right there. As the clock strikes 5 00. With my thanks to everybody here on closing bell. Fast money is next. Fast money starts right now. Hive from the market site in new york citys time square, Karen Finerman and guy adami. We start off with the market alert. Stocks selling off into the close today. This is the first time in nearly fife years that the s p 500 has closed down, at least 1 in three straight session. At one point, it did look like we might get a reverse until the small cap russell index, but it also closed in the red. Tech taking a hit with the semiconductors closing lower