4. 5 billion stake in phillips 66. Well get to all of it and a lot more. Futures are falling as we ring the last opening bell to the month. The bells are saying good rid kans to august. The nasdaq down its the worst month since may of 2012. Well see whether or not we finally get the weeks were used to having in august which are not nearly as exciting as last week. The market is very thin. People making a lot of big moves in a market that is not that stable, but i would point out that we have to get used to this. Last night the futures were down 25. There was nothing going on. China wasnt that bad. Stanley fischer, i felt was consistent with friday. It was a speech about inflation. And what i really want to point out is that we are down a lot on a lot of stocks. If you revisit last tuesday, almost everything is down. We have to start recognizing the market is pricing in whatever the fed does even though you may hear that only 40 say the fed is going to hike. Theres way too many stocks down big. I think we have to start realizing that is this a bull market . Its not clear to me. Example. You talked about disney being a pivot point. It is the worst component of the month for the dow. But its up 8 . Its one of the better ones. I was going through mid cap. 24 ha 240 stocks are in bear market territory. Thats a lot of stocks. I think we all kind of look at certain stocks and say theyre okay. Dow jones industrial average, at 2. 5 yield. The carnage has been incredible, and we keep acting as if wait until you see what happens. I take a look at the charts and think, i cannot believe what has happened. Particularly if you go back to tuesdays low where you just have wiped out months and months years of gains. We have so tart recognizing were in a very bad narcotimark. Lets stop talking about who knows what will happen. A lot has happened in august to wreck a lot of stocks . As far as fisher go, his line is he most likely need to proceed cautiously in monetary policy. He wants to do this. He wants even if its a one and done. Do you agree . I took a break from my tomatoes this weekend to read the speech. Hes trying to be pragmatic. There are a lot of people who look at what he says and think he wants to tighten. I think he said unless things do crazy, we have to go back to normal. And things might go crazy. That means, i pick up the financial times. I left on friday saying theyre not going to prop stocks up. Then i psi see china did. Theyre nutty, and can china spill over . Everybody knows it can. In november of 2011, italy, spain, portugal, ireland and greece were all going to default, and we went down 19 . If you look at last tuesday, we were down almost that much when most of the stocks fell. Oil had a remarkable recovery which kept those stocks from all being down 40 or 50 . Peek the trough. If you want to see real, you have a lot of stocks down peak to trough. Particularly oil stocks. It doesnt make me happy. It does say be careful when you see who knows what can happen. A lot has happened. Your point is weve already chopped a lot of wood . Yes. Exactly. But we keep acting as if, look out what will happen. Have you seen whats happened . Look at steel stock and industrial stock. Anything having to do is oil is not a bear market. That is the worst market ive seen in any stocks that i can recall. Biotechs. There are a couple up good, but theres biotech corners like you couldnt believe. Some Medicines Company has early stage medicine. It will take down even the remaining stock doing well in that group. The destruction has been just defying all comment of a bull market. I hear you saying this in a bullish light. Exactly. If we see tuesday again, after monday, not talking about mondays open. That was a flash crash. If we see tuesdays decline again, there will be people who come out of the wood work to buy stocks because they recognize tuesdays decline represented the fed hiking. You cant keep fearing the fed hiking when you saw what happens when youre pretty convinced theyre going to hike. Of course, the market rallied off of dudley being pragmatic. A lot when i looked at the charts, i saw netflix. Thats a good example. How about twitter in being upgraded at sun trust. The risk reward value appears compelling given the slide in the stock. A series of catalysts coming soon, including clarification surrounding the management. He moved this name a lot the last time we went to a buy. Look at this. Stocks down from 7. This is what i mean. Im not a big fan of twitter, but i am a big fan of peck. Stock is down to the low twenties, 21. At 21, you know theres companies that want to look at this thing. The report itself is typical bob peck. Its perfect. It talks about valuation, financial growth, monetization. I like it. Ive been very negative on twitter. If the market gets clobbered again, look at it. Only because you have an analyst whos been right at every turn. Very rare you have someone that good. He did forecast an announcement last week which did not come to pass. Well, okay. Hes better than most. Yes. Hes like sam brad ford, hes like a good quarterback. What im looking at when i read is piece which is thorough is okay, look. This is the microkoz m of what i see in the stock market. All hope is gone. When its gone, you get a guy saying theres hope. I thought it was very good research. 70 down to 21, he gets interested. He had been saying if it got to the low 20s, people will be interested. I love bob. Ive always been saying i think its a value, but i dont know where. I think hes saying its a value right here. Hes using a target of 38. Im when he downgraded it. I saw him come on the show and say wow, its bad, and it was bad. This is an example of what im talking about. It got really bad. Now you come in and say the risk is derisked. I saw an intel upgrade today. I looked and said wow, its down 20, a huge amount for the year. And its got a good yield. Is that risky . But you hear people come on there. People this morning, theyre like, were headed into a very dangerous time. Look at this twitter piece. Weve been through danger. This is like when they come out of the forest of the yellow brick road. Not going in. 27 is a far cry from 75. Thats for sure. People have to look at the reports rather than say peck likes it on a takeover basis. Theres monetization. It is a better site. When you go to twitter, its more exciting. When they do more cure rating, it will be more exciting. Then theres buffett, a 4. 5 million stake in phillips 66. They shed nearly twothirds of their share in february of last year as part of a deal to buy a chemicals business. What does this say . Theres two stream of fuel in this country, natural gas and oil. And then oil is everywhere and plenty to refine. When you see the discounts youre getting on balken and eagle ford, the junk that comes from canada, you call it that yourself, you realize the refining margins have held up better than expected. But this is very funny. Remember, this was split off. All these oil companies, many of them split off the refining. And one of the reasons why exxon hangs in is it has refining and chemicals. He owns a lot of pipelines. Hes levered to the industry. I think this is a cheap stock given the fact that were going to be lower longer. Thats the real phrase. Lower longer. Even after friday. Did the move to 45 surprise you . I think a lot of people are caught short. Its been a great bet to be short and stay short. There was nothing those of us looking for something to happen over the weekend with the saudis to justify the move did not get it. Now we come back to earth. I think oil, we may have seen some sort of price that buyers will come in again tuesday, like tuesdays low, but at the same time, i mean, theres absolutely nothing encouraging fundamentally about oils. Thats why you would buy phillips. They get to buy from wherever they want. They can take saudi oil or balken oil. You see the posted price of oil. No one is getting that in the major oil field, especially if you have to ship by train. Well watch that one closely and keep our eye on crude today just above 4 4. When you feel like crying, its time to start buying. Thats one one analyst is saying about two stocks. Well take a look at the premarket as we said, were on pace. August will be the worst month since may of 2012. S p down 6. 7 from the intraday high. More squawk on the street in a minute. My name is peter tran. Im a gas service representative. Ive been with pg e nine years. As an employee of pg e you always put your best foot forward to provide reliable and safe service and be able to help the community. We always have the safety of our customers and the community in mind. My family is in oakland, my wifes family is in oakland so this is home to us. Being able to work in the community that i grew up in, customers feel like friends, neighbors and it makes it a little bit more special. Together, were building a better california. Futures are down ahead of a very big week. Three big events this week. China pmis, tomorrow, the Ecb Press Conference tomorrow and jobs numbers on friday. A bunch of interesting economics used to see q 3. There will be a discussion about what fischer, dudley, lockhart said. Thats what people do now. I have data point sifted through on whether to normalize policy. China, right now i dont know the number. Their gdp . Yeah. Its worse than expected. What bothers me about the people who make the forecasts, why not take it down to where it is before 5. Who keeps forecasting so high. Its remarkable to constantly e predict that a team is going to win and they dont. China down 7 . No buying of stocks. I gave you tomorrows paper. Go have fun with it. Imf sees high 6s. When why is Christine Lagarde saying we shouldnt tighten. Theres inconsistencies every there. Stanley fischer says move. Hes very close to the imf, but im saying in every the Labor Department report i think is going to be better than expected unless the oil layoffs were really big. I dont think so. China, every number is worse than expected. When you come in hang dog im going to do it. Wow, carl, that was a bad number in china. Market is down 8 and were almost at 2200. There. Can you imagine . Thats priceless. You can act accordingly. I did it. There. You did. Morgan stanley going from hold to buy. After falling 15 in the pullback. When you feel like cry, its time to start buying. People are trying to figure out if we get a hike and thats it and the curve goes flat, how much do banks outperform, if at all . Not at all. Look, i think my travel trust owns Morgan Stanley. Im more inclined to buy some down 12 . Goldman is down 3 . These are inexpensive franchi franchises. Morgan stanley is a good example. Theyre in their own personal bear market. Glen short, ive known him for years. The stock is down big. Morgan stanley has a traditional brokerage business. No exposure to things im concerned about, and the stock is in a bear makt. Could it go to 31 . Perhaps. Is it expensive. Doesnt have any regulatory issues. Morgan stanley encapsulates the market. Its down peak to trough, down double digit for the year and its beat the number. Thats all its done. So if the fed tightens and the yield curve goes bad, then this stock is going to go to 33. It could go down. I just got the china numbers. Its going to be down. Im tired to the game. Like at Morgan Stanley and twitter and bob peck. These are seasoned good analysts. Theyre saying guys, wake up. These stocks have crashed. We dont use the term crashed because its ugly. I dont hear you saying its time to buy them. I was going over from my travel trust with Morgan Stanley should be bought. Im gun shy. Thats not down and out. Im saying im tempering my enthusiasm. I think one day we get a tuesday. You do . I do. I say that because theres no reason why our futures are down really. Why are we down worse than herb else . At one point we were down more than china and europe. Stanley fischer gave a speech that was interpreted as being negative. I come back and say no kidding. The market is bad. Even the stocks that had big moves, best buy, fabulous quarter. Stock is not up. There was a jcpenny upgrade nature that makes sense. Their quarter was excellent. Ulta is on my show tonight. Great double digit growth, and the stock still goes down, thats bear market. A couple of bull markets going on. Very small. Some in housing. Thats showing a lot of chase. Some in what i regard as being amid cure illness biotechs and then i come back to netflix. Netflix. Thats how youre going to end every segment today. Netflix is not in china. Those numbers last night im sorry. Its monday. Were get cramers mad dash and take a look at the futures which, as jim said, are down sharply after jackson hole. More squawk on the street straight ahead. You are looking at two airplane fuel gauges. Can you spot the difference . No . You cant see that . Alright, lets take a look. The one on the right just used 1 less fuel than the one on the left. Now, to an airline, a 1 difference could save enough fuel to power hundreds of flights around the world. Hey, look at that. Pyramids. So you see, two things that are exactly the same have never been more different. Ge software. Get connected. Get insights. Get optimized. The volatility clearly continuing into the new week, and into the month of september. Were down triple digits on the dow futures after fridays incredible gains. Now about 8 minutes before the opening bell, lets get cramers mad dash. We have upgrades and downgrades today. Yes. I think this is emblemmatic of where we are. The price target was cut on united tech. This stock right here is reflecting a lot of positives. Right here, this stock was in the mid 80s last week. I guess they must think its going to go down there again. They have a big business in china. But is this stock down enough to start making people feel its interesting on a breakup or its interesting on a buyback. The answer is probably in the mid 80s. Downgrade it to hold. I hope you can upgrade it to buy at 83 or 84. You want to buy that stock and put it away. Maybe not for the next since months but you dont know when the bottom is going to come. You want to look at this stock in the low 80s. Barclays takes it from wait to buy. I think at a certain point its Great American industrials. Theyre going down. Theres not a lot to it. And then research on planet fitness. This is a cash machine. All the analysts love it. We havent had a lot of ipos. And planet fitness, you have a Great American company that no one wants, but they love a gym. Lifetime fitness was a company that got bought high. This is more expensive than that. They have good cash flow. Is this the kind of blue chip i think people should buy . No. Its neither blew chip or worth buying into. But time marchs on. Why havent we seen more pulled ipos in this environment . Not a lot of deals. The gluten is palpable. I dont know a person who feels like we are even near anything. Were in no mans land. A lot of stocks have traveled through no mans land, and if you took a Warren Buffett approach, he buys psx, what hes doing is hes saying oil lower longer, kind of interesting. Do you buy delta down 10 knowing people have not stopped traveling . I dont know. The airlines have been crushed. The truckers have been crushed. The average railroad i follow is down 26 . Thats not a top down 25 26. The opening bell coming up. Dont go away. Here at td ameritrade, theyre always working. Yup, were constantly making thinkorswim better. Like a custom screener on your desktop, that updates to all your devices. And you can share it with one click. Wow. How do you find the time to do all this . Easy. We combined every birthday and holiday into one celebration. different holidays being shouted back to work, guys i love this times of year. For all the confidence you need. Td ameritrade. You got this. So youre a Small Business expert from at t . Yeah, give me a problem and ive got the solution. Well, we have 30 years of customer records. Our cloud can keep them safe and accessible anywhere. My drivers dont have time to fill out forms. Tablets. Keep it all digital. Were looking to double our deliveries. Our fleet apps will find the fastest route. Oh, and your boysenberry apple scones smell about done. Ahh, youre good. I like to bake. Add new Business Services with at t and get up to 500 in total savings. Youre watching squawk on the street live from the Financial Capital of the world. Well getting the opening bell in a couple of minutes. Well say goodbye to august and move onto september. On a busy week, we mentioned the jobs number on friday, august sales, ism, people are looking at the futures. People are looking at the vix futures and arcing that they refuse to sell off which means weve either got more to go on the downside or were going to sell volatility. A lot of people came with vix analysis. We did a piece on it. It was off the charts and negative, and then the market had one of the greatest rallies ever. The break down on monday where you go over the charts. It shows you the fragility of the situation. Using anything other than the shortterm oscillator from the s p, which is as low as the 2011 period. None of the indicators are working well. The market broke. A lot of firms, there were five firms frozen. Monday is, because of the general malaise, people accept the fact that the machines broke on monday. Its like okay, they broke, and thats all part and parcel of big bear market behavior. A classic bear market. People think everything is bad. Last week we talked about the tv cameras outside the exchange. This morning its the new yorker cover which is a giant stock chart with a mouse hanging from the line thats going down. Its a bear market. We had a couple stocks that hold in there but even the ones that are holding in are all in down trends. Im just saying be careful about getting too negative. They got there for you. Theres the opening bell and a look at the s p at the bottom of your screen. The big board is deutsche celebrating the golf championship, and at the nasdaq, citi year. A National Education group and microsoft ringing the opening bell over there. Microsoft down 5 of of interest in no. Intel down 25 . Of interest . No. Its what happens at the beaches. Wow, im thinking about speinte no. Im not saying go buy. Im saying if youre just now thinking i cant take it anymore, i want to unload stocks. Others have had that idea ahead of you. Youre either saying were overshooting on sentiment to the downside, or were reaching catching up to the stocks have caught up to the cause now. These are accurate. The stocks are catching up to the news but people are more gloomy than the news. Its almost like people presume the moment that the fed hikes, every currency falls apart and were back in the soup and stocks are going to go to 13 times earnings and the yield curve is going to collapse. Theres a lot of stocks that reflect that. Carl icahn is buying free port, it was like the stock was in the 40s not that long ago. I