Transcripts For CNBC Power Lunch 20240622

Its currently sitting above 45. And the standoff, mandy. Standoff or standdown. Big one today. Still positive. Lets get right to the New York Stock Exchange and get filled in by bob pisani. Bob. We were hoping perhaps when you close wed see moves on the upside. Nothings happened. Lets take a look here. A couple of big headlines. We were there at the open. Thats where we are at the day. Vacuum volume is on the heavy side. No light august trading days in the last couple of days and the volatility has been rising in the last couple of days as well. The entire market is essentially down. The exception here is a small group of consumer stocks that are mildly on the up side. Lets not quibble. You see what i mean. Down 1 to 2 . Fear measures down a bit. What are the fear measures . Look at the gld. Gold treasures. Volatility, nice. 13 a few days ago. Now its 18. Id start paying a lot of attention when its 20. Its moving in that direction. Keep an eye on that. Weve had a lot of heavy volume. The big one. Spyder. Ivv is the competitor. Same thing. And the mid cap has also picked up volume. Theres a lot of movement going around. Less plausible. Banks are breaking down. They had been off of their highs for a month already, but this is a pretty big break today overall here. Media stocks. Everybodys talking about the downgrade of disney. They didnt say nelg new but look at these big names. Theyve been down since disney earnings. Any good news . Thanks to dollar weakness, a few of the commodity names are on the upside. And finally any selling exhaustion at all out there . I see a little bit. How about walmart and proctor gamble. Bouncing a little bit and a hopeful sign that maybe were hitting a few of the stocks. Back to you. Thanks very much, bob. Lets move back to nasdaq. Its biggest drop since early october 2012. Bertha coombs has more. Hi, bertha. Hi. Today its under pressure at a sixmonth low and also technically some folks notes that its moving toward its moving average. Its not a good technical sign. Under pressure with research coming out of gartner raising more concerns about the slowdown in china. Gartner saying smartphone sales in china fell in the Second Quarter for the first time. Thats having pressure on a number of chip stocks today as well. But netapp is having its best oneday gain in just about a year. Its trading on nearly four times its average volume but it hit a twoweek low. Some of the others were seeing moving up that have hit new lows as well like keurig also have some nice dividends. Mattel one of those as well. Back to you. Thank you very much. Bertha coombs at the nasdaq. Wheres the safety trading . Check out gold. Prices are rallying there. The precious metal is up 5 over this month. Lets get to Jackie Deangelis whos been tracking the gold. Hi, mandy. Thats right. Weve got a toplus dollar move today and youre absolutely right. There is a little bit of a fear in the marketplace. The safe haven trade definitely coming back on line. You saw gold start to move in anticipation of the fed minutes yesterday and when those minutes came back out after that. Also a majority of traitors are saying that they think that the dollar will remain weak as a result of what we heard from the fed. A september rate hike not likely to be in the cards. All of this creating a bullish market for gold. Its so interesting because it really was down in the dumps just a while ago traders thinking it wouldnt rebound. Now the levels were talking about, back up to 1200. The gold taking all the metals back up. Back to you. Thank you very much for that, jackie. Its also being pretty volatile for oil prices. Theyre sitting at a 6 1 2year lows. Crude went up. Were up half a percent. Crude sitting right smack on 41 a barrel. But lets take a look at two different prices for wti crude because theres the september contract which does expire today and also theres the october contract which begins trading today. Tyler, over to you. All right. Lets switch our conversation to the dollar which continues to be under pressure following yesterdays fed minutes. Sara eisen tracking the big currency move. Is this as simple as the feds watching the comments suggesting that theres not going to be an interest hike in september . Yes, thats exactly right. The message is no rate hike in september. Thats why the dollar is falling. Some of the major currencies like the euro and the japanese yen. The feds have plenty of concerns. They mentioned in ninlts, china, the strong dollar, the inflation, not in a rush to raise rates in september. Thats why you see the dollar index at the bottom, including euro mainly under pressure. This has been one of the most popular bets a bet on the u. S. Dollar, and its done very well. The u. S. Dollar is still up double digits from last year, so what were seeing is an unwinding. The really alarming thing happens is the emerging markets. Emerging markets currencies are getting absolutely pummeled. Just for example, check out the dollar against the mexican pay sow. Its trading near a record low as the dollar strengthens. This is an economy in mexico that seems to be doing pretty well. In fact it shows that it swung in the quarter. Yet the currency continues to get hit by the oil and commodities slide by whats happening in china and overall it just shows the ancientst and bearishness toward all emerging markets now. He told us that these markets are overshooting and you can see that because all the emerging markets currencies are getting grouped together and theyre being sold without discriminating. The question is how long this lasts and how severe it gets. And that, guys, will depend on how deep the china gets and whether the Chinese Markets can calm down. Obviously watching some of the markets there, tyler. All right, sara. Thanks very much. The u. S. Selloff sparked in the Global Market. China index shrinking 3. 5 . Japans nikkei sixweek low there. Germanys dax and the french cac both dropping more than 2 today. Lets go to dominic schu. Broadly overall, fwu utilities standing out. The only one at least for right now in the green. Among the leaders, edmon internation international. When you have a day that the Interest Rates are there. The utility rates become more attractive. Back over to that. Thank you very much, dominic chu. Now negative for the year. Its also trading below its 200day and 50day moving averages. Levels are going to be what were going to talk about. Thats coming up. Plus with fears about the Global Markets is the september rate still on . What wall street economy is telling us. Stay with us on a big market day. More and more, data is visual. In fact, the number of mris has increased by ten percent a year. And a radiologist might view a thousand images to find one tiny abnormality in shape, contrast or movement. Because its so challenging, a Research Project is teaching ibm watson to see. In the future, it could help clinicians spot key patterns quickly and precisely. Ibm watson is working to make healthcare smarter every day. Its also trading below its stay with us on a big market lunch. I wuk back to power lunch. Im julia boorstin. Theyll be offering twitter to 700 Million People that network ad reaches. They try to diversify to their service. Back over to you. Quick question, julia. Is there anyone on the street that says after such a steep decline, its now a buy . Theres a lot of things were waiting to hear from twitter. Were waiting to hear who the new ceo is going to be and how lightning works. I think some hope there well see positive changes once we seal one of those things implemented but well see whether we see a selloff. Thank you very much. Julia boorstin. As for disney, its also low today. From market perform to out perform. Media stocks need to be adjusted because of an increased risk regarding affiliate fees. The sales are continuing shrink. The stock is down by 1. 6 and val yablt has brought spout for 1 million. You might have seen earlier this week sprout got fga approval for a libido pill. Back to you. We were there for the premature anticipation of the numbers from the fed, the minutes from the fed. Yeah. We both jointly agreed that the idea here was that those minutes made it more rather than marginally. Marginally more likely that the fed would raise Interest Rates in september. Only to watch the markets rally. They said, youre crazy. What did the economists say . I went all day working with my fro deuce eproducer and we sm after they came out after 2 00. They werent. 1 42. Take a look at the full screen. 11 economists still saying september of our 17 were able to find reports on. Five are saying december. And one says 2016. Now, you might ask your next question, who is where. And ive got the names and numbers. Who said wet. Lets take a look at the septemberists. Here we go, jpmorgan, barclays. Credit suisse. Piedmont, oxford economics, pnc, wells fargo, dortch bank writeson, ubs and others. And you have Morgan Stanley, plenty of brain power over there. Look at this for 2016. I picked two quotes to characterize whats going on. First of all lets look at barclays. Theyve been quite positive on balance and should push it toward shortterm liftoff. The Second Quarter is being revised. Third quarter right now running around 2. 5 . Thats the growth side of the equation. It leads you to a hike. Come on over here and take a look what our friends at Morgan Stanley are saying. The fed admits they picked up. The fed wants to raise rates here. We believe it continues to take a pass in september. They want to do it. Whats happening . The dollar. Oil tanking, commodity tanking. Overall the conceptionual problem we have is were not seeing the accepted pass threw from the better growthing into further inflation numbers. Because those componented just arent following along. Because of whats happening globally and the way our models or thinking about the world needs to change. So if they wanted to pass, theyve really got the perfect cover if they wanted to wait until even next year, do you think . Could be. Could be. Heres the thing. I hear people on the board. Hes not a rabid hawk. Hes right in the middle. He says september some time. Jim lewis says october late. He has a case for why they ould raise rates in october. I believe the case for a zero is eroding on the board. Not that they want to raise but more like they feel zero is the wrong number for the data were getting on growth. Wouldnt it be a situation where its a vote for the economy. It might stabilize our markets. You were off yesterday, right . Ive been off 2 1 2 weeks. You didnt read the minutes which said exactly that. They said a line in the minutes it shows how smart you are. I didnt read it. If you did, you missed this one line. Its exactly what youre saying. It would show. Well. Lets take a look at the numbers here. Were turning negative for the year. Its currently down by 30 points currently sitting at 3049. Its below its twoday average. The key support levels. Plus as we head out the biggest losers. Youve got netflix leading the way down by more than 7 . Others like micron tech, walt disney. Sandisk and others. Power is back in two. At ally bank no branches equals great rates. Its a fact. Kind of like shopping hungry equals overshopping. Is as easy as it gets. Wouldnt it be great if hiring plumbers, carpenters and even piano tuners. Were just as simple . Thanks to angies list, now it is. Start shopping online. From a list of top rated providers. Visit angieslist. Com today. Check out this incredible explosion at a motel 6. Police are wondering if one of the workers hit the gas line. Look at that. Boom. Well leave the gas on for you. New wildfire has broken out in california. First reported on wednesday afternoon. Its consumed more than 2,500 acres of land east of liver moore. In twisp, washington, three firefighters were killed battling that. Lets go to leann for the latest. Reporter it was somber knowing it was going to be a difficult day and after losing three of their own. They call it epic. Sustained 40 to 45 miles an hour with this fire. They say it makes the fire like a blowtorch. Its very erratic, a very wild kind of a day, and they t community has evacuated a thousand people last night. An intense moment. This is the most dangerous night of a threeday wind event. Mandy, thats the latest. Thank you very much. The major averages dropping for a Third Straight day. Heavy losses for a second straight session. The s p is now negative for the year, but were off the lows for the day. The down is down by 240 points. How are traders playing the market . Joining us from the floor, ben, good to see you here today. Are you a buyer or a seller . A buyer. If anybodys listening to the smartphones on the beach right now, switch over and buy something here weve come down. 2046 is a level weve hit about three times over the last year, actually slightly lower in march, around 2040. But i think if youre on the buy the dip mentality for that trade, this is the opportunity to buy risk capital back on the market and look for it. This morning the action was a little weird. Very light opening on New York Stock Exchange stocks and then we got pointed. I pounded. It appeared to be a buyers strike. When you went to hit a bid, you were not selling large amounts of stock, you had to continually sell the stock lower in order to get any vacuum done. Did you see think its a shortterm volume and theres more damage to come . The by the dip sell the rip mentality is still in place. Youre rangebound until youre not. We came down to the levels that we did and didnt break hard through them is a positive. Again, going back to the idea this is a buyers strike. I believe that you want to be a buyer when nobody else is a buyer. It can be a painful trade for a short period of time. But i believe over time this will prove this is a tradeable bottom if you will. Do i want the market to go higher, yes, would i like to see a correction . Id love to see a correction. Ive been at this game for 30 some odd years. A good 10 correction is actually healthy and a better indication of a time for me to buy than this kind of move off where we are. But i think in a market were in, weve continued to see a market where we have sector corrections. The transport down 10 . The Energy Sector getting absolutely crushed. Those are areas right now. I would be looking for the Energy Sector. Thats what i was going to ask you, ben. What do you buy . The sle is actually one of the big trader names. I heard bob pisani talk about it earlier this morning. It was actually one of the better performs in a sea of red. It was less red than some of the others. If uyre looking to buy an indicy, the sle is a place where youre seeing money go to work. Those people that get paid a fee to ship product. They dont care what it costs go into their pipeline. So thats really where i would be looking right now. Ben, thank you very much. Youre a young guy to have been in this for 35 years. You must have started when you were 6. Nice to see you. Thank you. Down in the red, disney, boeing, haiging on by fing fingernails. The u. S. Showing some resilience. Can the u. S. Stocks go it alone . Will we still see a u. S. Rally many of the street are betting on . Well unpack that one when we return. The mercedesbenz summer event is here. Now get the unmistakable thrill and the incredible rush of the mercedesbenz youve always wanted. But you better get here fast. Yay, daddys here here you go, honey. Thank you. Because a good thing like this phew wont last forever. See your authorized dealer for an incredible offer on the exhilarating c300 sport sedan. But hurry, offers end august 31st. Share your summer moments in your mercedesbenz with us. Hello, everyone. Im sue herera. Here is your cnbc update for this hour. David sweat declined to enter a plea during his arraignment in clinton county. Hes charged with two counts of prison escape and one count of promoting prison contraband. The judge entered a plea on his behalf with no bail. Bob mcdonald remains friel while he appeals his public corruption appeals to supreme court. Hell now have to report to prison within the next few weeks. Senator john mccain attending a ceremony in latvia. The facility is in riga and its known as the Strategic Communications center of excellence. A small plane door panel landed on a North Carolina golf course yesterday. The plane was passing by overhead when the panel crashed onto the green. The plane piece belonged to a Us Airways American airlines airbus. Pretty scary. Thats the cnbc news update at this hour. Its dangerous on the golf course, ty. That would probably improve my putting. Thanks, sue. Youre welcome, ty. If you want a safe trade, gold is it today. Its been, folks, a rough year for gold if we can throw up a rough year. There you see it up 25 an ounce at 1153. Up 3. 5 so far this week. Weaker dollar helping it back. Back of the fed helping it. Lets move over to silvering copper, played yalladium and se theyre doing. Theyre doing well. Palladium and platinum both movers. To the bond market where Rick Santelli is tracking the sliding yields on the tenure. Rick . Absolutely. Maybe even the third year is a bit more fascinating. Before we even get to that, keep a couple of things in mind. The s p virtually unchanged on the year and the only maturity that replicates that on the curve right now is a 30year bond. Where did it settle . Exactly where the low yield is at 275. Yes. 275 is where its settled. Lets do a chart a little before the end of last year to see all the context. All the key areas weve sliced through. It all started and ended with 275 key level. And we can take it even a step further on the derivative chain. Take our tenyear minus boons to give you a relationship of how europe and u. S. Rates are moving together. Notice its at the low end of the reins. The chart starts in early june. Even though thats the 10 versus the 30, makes sense. If we slice through it, they think it will get smaller so you want to watch all those moving starts. Listen, sara had a great piece. Do we have evidence of that, we certainly do. Look at this chart. 630. Last time it was down here and the euro, the last time it was at these lochte levels, it was the 29th of june. Admit that to the broad base trade weighted dollar index and you can see the difference in those charts. That reflects emerging managements like the chinese currency and its doing much better. Tyler, back to you. Thank you very much. Lets take a look at where it stands right now. The Dow Jones Industrial a little low off the session. You see theyre down 32 points at 17,116. The nasdaq the big loser off 2 . The s p 500 down at now slightly negative for the year off 1 1 3 percent. Lets check in with bob pisani. Lets take a look at the s p 500. 41. Were just off the lows. Lets not quibble about a couple of points. 2050, weve been there before. An 80point range for the s p throughout most of the year except for the early part of the year. The dow reflects the broad decline, no matter what youre doing. Farmer stocks like merck, arrow space stocks like boeing, consumer like nike, united health. You see everything down 1. 5 to 3 . Its reflecting the broad decline. And theres the whole media kerfuffle. Disney. Bringing down all the media stocks with it along with the downgrade by bernstein which a lot of people were surprised at its had such an effect on. But bernstein came out and said tv advertising has had a weaker decline. We know disney was weak. This has been known for a while now. Media has been very weak on this. But for some reason this comment hit the zeitgeist today even though i didnt note anything particularly new on it. Theres the pbs out there. You can actually own all the media names. You can see the decline began when the disney report happened in the first week of august. Back to you. Thank you very much. Bob sayrian of high tower advisers and mike of bp capital. Thank you for joining us. Bob piz sansani has been explai it. Relatively speaking the u. S. Has appeared to be resilient. Do you think this is something we can keep doing alone . I do think we can keep doing it alone. Thanks for having me, mandy. Ive been thinking a lot about what Warren Buffett said, be fearful when people are fwreedy, be greedy when people are fearful. We havent had a correction in almost three years and our markets are still slightly below record highs. I think they need to be patient here and step back and take a look. Is this an opportunity for rebansing here. Buy the securities back in 31 days . We have record amounts of cash on the sidelines. I think this is an important point. Bond prices could be volatile. You want to make sure the bonds are short, stable and lateral. When you tack about putting cash to work and real indicating, i spoke with someone on the floor and he said hes buying energy names. Know you take a much longer view than daytoday trades but nevertheless where would you be putting your money to work . I agree with you, mandy, but if you step back and take a look, valuations in europe are significantly more attractive than here in the u. S. The euro 600 has had a record. Euro is going from bad to stable and theyve outperformed our markets so far year to date. Every major bank except ours including the ecb is lowering. Theyll be buying bonds through september of next year. I believe theyre going to continue to outpace the u. S. I know, mike, you rather like europe as well but i want to take you back, mike, to a conversation i had earlier to steve liesman. That is do you think we might continue to see volatility here which could be a vote of confidence for our economy . Yeah. I think its possibility that volatility is here to stay. I think longer term, whether they raise in september or december, where the markets end up at the end of 2016 or end of 2017 are going to is not going to matter whether they go in september or december. Thats really the conundrum. Those who want to be safe and secure have carob on the sidelines. They may be foolish on equities but its exactly the market you want to be deploying. So we continue to try to preach diversified portfolios with some cash on the sidelines when things get a little bit cheaper which domestically and actually around the globe things have gotten cheap over the last couple of weeks. Greg, mike, thank you very much. You can go to powerlunch. Cnbc. Com. That is powerlunch. Cnbc. Com. Back to you. Our chief correspondent john harwood has been sitting down with some of the most popular people in politics, part of the speakeasy series. Go to cnbc. Com speakeasy for more. Marco rubio and john is live in detroit where i gather, john, mr. Rubio, senator rubio, was giving a speech today. He was, tyler, and i asking him about the tenor of the immigration debate and the appeal of the 14th amendment and birth rite citizenship and asked him if it was time for him and other republicans to stand up and say stop. When i talk about 13 million illegals in the country, its human beings. Anchor babies. Theyre human beings. Ultimately theyre people. Theyre not just statistics. Theyre human beings with stories. After the last president ial election your people did an autopsy and said, number one priority, repair the breach with latino voters. As you sit here with a campaign thats got a decent shot to win, arent you thinking right now the republican is dropping a giant homemade bomb on itself and the 2016 campaign . Its not the Republican Party. Its the individuals. Its the face of the Republican Party. The face of the Republican Party is going to be the nominee. Isnt the birth rite citizenship of which you would not have been a citizen at the time you were born, is that not one of the foundations. Let me correct. My parents were legal. They were not citizens. Theyre talking about people illegally in this country not having access. Not people that were legally here like my parents. Be that as it may, is not birthright citizenship . Whats the flip side of that argument. . You have people coming to this country expressly for the purpose of having children. And, tyler, the question for marco rubio is how he can push himself to the forefront of this debate, which has been dominated the summer by donald trump. All right, john. Thank you very much. John harwood in detroit. Dominic chu in the meantime for market flex. Another casualty is the biotechnology industry. Specifically its one of the worst performing groups. You have vertex pharmaceuticals. Regeneron and others down by 2 or more. The ticker is ibb. That fund has now lost around 10 since its highs back on july 20th. So certainly biotechnology, a big part of todays selloff as whelm back over to you, tyler. Thank you very much. Before the break, lets look at the s p 500. Look at all the red, folks. That would suggest that about maybe 60 out of the 500 stocks in the s p 500 are actually positive at this hour. Youre watching cnbc first in busine business worldwide. Two streetlights. The only difference that little blue thingy. You see it . Thats a sensor. Using ge software, the light can react to its environment getting brighter only when its needed. In a night, it saves a little energy. But, in a year it saves a lot. And the other street . Its been Burning Energy all night. For frank. Franks a cat. Now, two things that are exactly the same, have never been more different. Ge software. Get connected. Get insights. Get optimized. Can a a subconscious. Mind . A knack for predicting the future. Reflexes faster than the speed of thought. Can a business have a spirit . Can a business have a soul . Can a business be. Alive . Lunch. Check out whats happening with tobacco stocks. The Industry Group is the best one. Thats a subset of the Larger Consumer staples sector group. Theyre all each showing at least some fractional gains today. Theyre outsized dividend players so that might be playing into the story. Back over to you. Thank you very much. Youre going to look at the nasdaq 100 and whats moving at this hour. Theres 100 stocks. One, two, three, four, five, six are positive. Bertha coombs following thea. Bertha. Overall were seeing today traders telling me theyre seeing whats winning. Dom talked about the biotechs before the break. Today youre seeing strong volume as people sell out of it. As you look at the nasdaq volatility surging back above 20, we were there back when we had the big selloff when we saw the plunge in chinese stocks. Thats part of the concern here in terms of softness. Gartner out with a report about apple not apple specifically but cell phone smartphones in china, down 4 in the Second Quarter, down 4 year ore year for the first time in a long time and apple actually lost two parnlt points of market share and thats spilling over into a whole number of names. Tyler . Bertha, thank you very much. We appreciate it. With stocking falling, is now the time to hold or sell . Buy, sell, or hold . What are you doing today, john . What i decided to focus on today, mandy, is looking at severely oversold stocks and where would you have any comfort to buy a stock. Its a drinking game, of course, because we ee off the bottom. Then we just set a new bottom it seems every few minutes on days like today. So instead being able to accumulate a stock that has a Share Repurchase program seems to be a smart way to go. So you find your candidates in the ones that are buying back stocks. Shares of Companies Like shares like general electric. They announced it back in april. So i would think a stock like that when it gets sold down hard, you get a chance to buy that one and youve about got them buying with you because for the most part just as we saw last week, apple, for instance, got down to about this same level where it is right now. And then apple had that very nice bounce. These guys could make their buyback as big as they wanted. Theyve got 200 billion, but theyve got a commitment to a very significant amount of that cash to be in the Share Repurchase program. Youre looking at ge capital and other names . Sure. A bunch of these are techs, ibm, cisco systems. All of them have big repurchase programs. Mobil as well. If youre looking for a place to hide, i believe its in these stocks in the Share Repurchase pride. Thank you very much. Thank you. John naf therrien. Were going to be narrowing down those names with a little help of crowd souzing. Two mayking big moves, gold and copper. Where . Well try to find out. Thats ahead. Need to hire fast . Go to ziprecruiter. Com and post your job to over one hundred of the webs leading job boards with a single click. Then simply select the best candidates from one easy to review list. And now you can use zip recruiter for free. Go to ziprecruiter. Com. And i am a certified arborist for pg e. Ughes i oversee the patrolling of trees near power lines and roots near pipes and underground infrastructure. At pg e wherever we work, we work hard to protect the environment. Getting the job done safely so we can keep the lights on for everybody. Because i live here i have a deeper connection to the community. And i want to see the Community Grow and thrive. Every year we work with cities and schools to plant trees in our communities. The environment is there for my kids and future generations. Together, were building a better california. Welcome back to power lunch. We have more. Alexis stsipras says he plans t resign. He has a moral obligation to place what hes done to the judgment of the greek people going on to say further that the mandate he receid on january 25th has exhausted its limit and the greek people must now decide. He went on also to say they did not secure the agreement that they wanted but it was the best under the situation they had at hand, also that this is a difficult time rather of these negotiations is finally over. Now, again, there is a report here that hes going to call for these new elections but hasnt made a specific reference to the date yet, although its been widely reported the date of possible new greek elections could be september 20th of this year. So, again, watching whats happening with this latest development here. The greek Prime Minister Alexis Tsipras saying he will plan to resign and theyre going to have new elections. Its been reported the new elections could be september 25th. All of this being made during a televised news address. Thats the latest here. Ty, mandy, well bring you more when we know more. Nonetheless the your point earlier, to what degree do you think this was expected anded aed to the market . It was widely expected. This is being made for the record. The interesting part will be whether or not they do actually set a date for when these elections could occur. Again, weve heard these reports. It could be in the middle of september. Well wait to hear it on the record from Alexis Tsipras, again, planning to resign. He says now its up to the greek people to evaluate or do whatever they want to do with the agreement theyve negotiated with creditors. This feels like referendum part. Remember the snap negotiations in the middle ofhe euro partners. This looks like a logical extension of that. Do you want me to say, do you reject what weve done. I guess well find out whenever those elections occur, dom. Also more statements coming out. Also he says were obliged to fulfill the agreement we negotiated but well fight to mitigate any adverse consequences, again,ed aing to the idea they did the best they could and now its going to be up to the bigger part of grease to either go with it or again find Something Different later on down the line. Thank you very much for the headlines there,dom. Okay, shares of deer up nearly 4 . The earnings are out tomorrow before the bell. Weve got a bull and bear discussion on the stock. Thats still ahead. And take look at how the sectors are fairing today. Youve got them all on the downside except for the utilities which are up by 0. 2 . Were back in two. No students ever been the king of the campus on day one. 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And learn more about the kinds of plans that will be here for you now and down the road. I have a lifetime of experience. So i know how important that is. And will oil close below oil. Weve got 30 minutes to go. Welcome back, mandy. Look what you did. Look what i did. Not my fault. Not my fault. Im taking no responsibility. Okay. Well, Agricultural Equipment maker deere is expected to report its earnings tomorrow before the bell. As i mentioned before the break, the stock is trading high although it is falling slightly to the down side by 0. 7 early today. Lets bring in. Youve been arguing on the bull side. Its hardly a ringing endorsement of the stock, is it . I think thats fair its great business but right now we see a limited upside to the share price. Why. Im sorry. You said why . Yeah. Why. We look at longterm Free Cash Flow. Theres really nothing we see in the next fiveyear outlook in terms of the Free Cash Flow reduction. Wu think things like their Construction Business have performed strongly. We think theyve done an excellent job of it and theyve been an excellent repurchaser of their shares when they think that its opportunistically priced. Youve got a bear performer. What do you see as problems with the stock . The Third Quarter is coming out when Farm Equipment is weakening and its far weaker than anybody has expected. Ag is not immune from it. Were having big prices across the board inning a. Earlier programs for deere are not doing very well. Next year will be a down year. Thats not whats factored into the market. Outside of the u. S. The key markets for deere are all basket cases and they have a new investment. If next year is going to be a down year as well, when are you going to see a pickup . Well, when you look at the farm sector, it takes at least two to three crop years for things to get better. The thing to remember is crop sales have been 20 more above normal so youre really normalizing demand. 2017 is the earliiest that you can get better. Its in the hands of god. Well s what god does with the crops. Kwame, how does it do against some of its peers in the sector . The way we do it in the business word is always assess it. Certainly far more better position than its competitors. 56 market share in america. Increasingarket share in brazil. Pretty steady market share in europe. Investing very heavily in its business and its dealer network. Quite frankly, i think a lot of the moves you seen the competition do youve seen try to emulate deere. Weve got to loosh it there. Its exactly where your price target is. Thanks very much to both of you for joining us. We should also mention the production has resumed. The deere facility was damaged after that tainjin explosion. Were on the price target. Ive got to a hold on it. Thats the only bull we could find. What an interesting couple of hours are ahead. You dont want to go anywhere because the markets are quite turbulent. Good to have you back. Good to be back. So nice ofou to have returned. I was thinking about it. That will do it for the hour. Brian and melissa will take it away. Thank you very much. Were 2 00 on wall street, 9 00 p. M. In saudi arabia. The dows off 214 points. Hi, everybody. It is a very busy thursday. Right now stocks continue their selloff, the dow down 200 points. Only three names. J j, p g, and walmart. Oil is up but earlier it hit 40. Were, of course, counting you down. One thing that is higher in a big way, and that is gold. A big move up for the precious metal and as stocks fall, heres your stat of the day. 25 of the s p 500 is now in a bear market. There are 125 Companies Whose stocks have lost 20 or more from their recent high. Wow. That includes actually two big name, ibm and even p g which is up fractionally today, was lower last night. That pushed it and ibm official into a bear market. These are heady stats. Lets get more on this market selloff. And bob pisani, its kind of one of those days where like with a carnival day, if youre going to throw a dart at a balloon, someone will give a reason for a stock selloff. Between materials, between industrials and between energy, yo view enough between the three sectors, and theres others. Were essentially off the lows. Lets not quibble with a few points. We were down at 10 00. We havent shown any signs of making any kind of significant rally off the bottom. 41 declining. Dow movies, drugs like merck are down, techs like cisco, consumers like nike. U h is down. Disney, of course, on the bernstein downgrade. Gold is up. Strong volumes. The volatility index has gone from 13 to roughly 18. Thats noticeable. Banks are breaking down that high Interest Rate story. Its not holding water. You can see its been coming down. Finally thanks to the dollar weakness weve seen a reverse in commodities and a modest move up. Largely consumer names, mattel, Waste Management and clorox all modestly higher. Back to you. Ill take it, bob. The nasdaq is on pace for the biggest monthly decline since october 2012. Take a look at shares of netflix. Netflix has traded its full average volume. Major drop here of more than 7 . This is very interesting because bernstein as bob had mentioned declined. Essentially because of the inroads that netflix is making but netflix is feeling the pain in todays session. Take a look at this the f. A. N. G. , that would be facebook, amazon, netflix, and google. Hitting a fresh, low edison, which is nearing a twoweek low. Health care one of the best sectors but feeling the pressure today because of the downdrop were seeing specifically in biotech. Take a look at that nice pop in todays session. Certainly a bryce spot with a gain of 5 . One of the rare ones. Lets get more insight on the silloff. Not only today but lately steve massocca. Steve, the dow is down 5. 5 over a couple of months. Thats a pretty serious move considering what weve seen in the last couple of years. To what you do attribute the weakness . Kazakhstan. Youre blaming borat for the market selloff. Thats not very niece. Its a tangent. Kazakhstan reduced the value of its currency because of china. A lot of it is about china and china exporting deflation. Theyre reducing it. They cant really build any more apartment buildings. That exploits deflation in the united states. That puts the fed in the box. Youre concerned about probability and theyre exporting products, competing with china. Its a new concern, too, because its really just kind of surfaced the last few weeks and i attribute the vast leg of that down to that. What is more important. China or the fed for u. S. Stock owners . I think right now china. They might raise it 50, 75 basis points. I in no way see them going over. Thats going to put fuel on the fire as far as the situation is concerned. So i dont see that happening. If the fed raises, theyre expecting it. I think this china issue is kind of new. Whats going to happen. The impact its having on commodity markets. The impact its going have on anybody who competes with them. Its going to be an issue. Steve ma solcol. Were going to leave it there. Thanking for joining us. Well see you soon. All right, folks. Here is your 16 trillion question of the day. Are fears of the fed pushing stocks lower . Well, some say yes. Steve disagreed. It could be the case but there other big factors weighing on the mind of janet yellen and others. Number one, commodities. There are concerning about Global Deflation and housing. If Interest Rates go up could that take home price gains down and probably the biggest theme right now is that. You have china slowdown. Brazils economy and stockmarket are falling fast and now even new concerns over saudi arabias finances. And obviously the concern there being led by oils big drop because part of the reason oil has been so weak is the saudis have been flooding the market with oil. Theyre now exporting 100,000 more than just days ago. As for oil, the september contract expiring today after the close. Its up at 2149, but we can also look at other contracts to see where markets price oil going forward. For example, the october contract becomes the front month contract coming up. Thats trading up. And look at the january 2016 contract. Its at 44. 01. Yeah, about 2. 5 bucks higher. But nowhere near the 60 or 70 range that people have been calling for. Keep in mind the contract rollover continues at the end of the day or close. The rest of the world, many emerging markets have been slamming recently. In fact, in the last 30 days, sick a pore, brazil, and the russian stocks down 10 . The saudi arabia stock down 14 in just one month. Right now the emerging markets etf at its lowest level. Joining us ahead of multiglobal seattle at usaa investments. What you do acheesh this near total global weakness we receive in the past couple of months . Well, emerging markets are facing the classic headwinds of low Global Growth if next to anything, a rising dollar, a fear of fed tightening, and then lastly just concerns around the commodity price drop, which are all in a way that attach to it but the Global Market is concerning a lot of the markets. Those are all the classic headwinds that they typically face whenever thungs go back for them and thats whats been happening in the confluence over the past month or two and its really coming to a head. On the flip side a lot of these markets are still pretty attractive when you peel away the onion and look at the emerging markets. Whereas some have a high degree of quality and cannot only with stand some of this volatility at the economic level but also will benefit from lower commodity prices. And we do want to get to those Higher Quality ee meshlgs markets and companies, wasif. But how bad is it going to get. I ask you this because i wonder if default rates are going to rise which could be a concern for investors here given that the emerging market Corporate Bond market is actually higher than the u. S. High yield market. This could be the next shoe to drop, so to speak. Sure. It can be. It depends on how much of their debt is priced in dollars and weve looked into this. A lot of it has occurred. If you here looking at exporting and youve issued that, then youre going to feel the pain. So it depends how much is in dollars versus local currency because that will impact the debt servicing part of it. So there will be some more pain around that and there will likely be more pain and bankruptcies possible down the line. I like, wasif. I like your onion analogy weve got to go because many have made people cry. But if you had to pick one Global Market outside of america thats the safest and most attractive looking in the world anywhere, where is it right now . Well, in a longterm growth secular story, i think india is one of the most attractive places to be. It hasnt faltered because the central bank is really strong and ready to preserve and protect the currency. That will mean shortterm economic pain, but in the long run with the Demographic Dividend that they have going on and the policies that they have, thats grade policeplace to be in the lock run outside of the u. S. Wasif latif, thank you for your insight. Were all over the selloff. A lot of red. In fact, 27 of the dow 30 are down. J j, p j, and walmart. The only three that are high. Weve got stocks making yearlong or multiyear lows are coming up. Youre watching first in business worldwide, cnbc. Stick around. Welcome back to power lunc lunch. Check this out. According to a report in bloomberg theyre said to have hired rbc capital for a possible sale of its data storage business sighting sources this is a bloomberg report. That has sent the stock up. You see the stock is up. Again, smaller caps stock. Green, a sliver e of it, guys, in a sea of red. Back over to you. Lets get a check on the markets. Its been a weak day, a weak couple of weeks. The dow down 200 points the nasdaq off more than the s p 500 off and nasdaq down. Theyre all hitting 52week highs today. The only three names in the s p s p 5 s p 500 to do so. Gold, yes, it may be down but its glittering today. Gold, a bright spot in a sea of red. Its up 24 bucks an ounce. Hes here to tell all of us why gold is higher today. Phil, why . Weve got gold up 35 bucks in the last two days. Remember, gold has been suppressed for a couple of months. Feds were going to raise their rates. Now thats not the case. Withve got a weak Global Economy and uncertainty in china. Remember, where theres smoke, theres fire. Weve got gold prices pushing through 11 ooh r 1150. I think your key level support back down to 1115. That was yesterdays low. If we violate that, we could see a water slide effect going. Ice got a lot of momentum behind it right now. Its got a story, a fear trade. I think its a fear trade right now. If the fear trade goes away and things calm down, weve had it over the last five year, phil. Is gold going to resume its down grade . Thats why i say you have those key levels. It does have some momentum behind it but the fed has to raise rates sooner or later. Theyre procrastinating a bit. Remember a lot of these markets like s p flattening on their performance. Its doing anything. Youve got to make money somewhere. Gold could resume its down trend but i think if youre in the equities right now, youre pulling out of that, looking at some of the componecommodities been deeply undervalued and gold is one of those. Phil, thank you very much. Appreciate it. Melissa. Copper up more than 2 . A lot of people are making a big deal. Isnt there some sort of a backstop in the fall in copper in that if prices get low enough theyll be restocking by chinese manufacturers or even the china state reserves bureau. At some point prices will get lower. Copper traded between 2 too 50o 230. Its its not a demand story . Its not a demand story as much as a dollar story. We werent cheering back in 2011 as far as financials being there so im not going to be crying here at these levels at 225. So i think theres some value down here and i think theres some larger potential on the upside. If you look at the larger picture copper fluctuates. But in the long run the supply dynamics will have to change. Alan, grad eat to see you. Alan nukman at the cme. Jason joins us on the line. Grade to have you with us. What is it . They made a lot of money with netflix. Its a tricky market. Theyre cashing out . I think you start with that. The average price on the street is about 18. You look at what theyre doing. We forecast that they go to 40 next year and so to the extent that you havent factored in further dollar weakness, that could cause negative estimate revisions for next year. That being said, youre also caught up in kind of a derisking trade. So, yes, this is, you know, i think this average internet stock is down. This is clearly worse than that. Those are the factors. You made the point that the average price is 118. Yours is what, 125 you said . Correct. At this point with an 8 decline, is the risk reward to get into the stock . Tomorrow is the stock going have a higher beta and decline more in the market . Tomorrow entirely possible but if you misset it and youre looking for an entry point, these are the types of moments that the stock is performs worse than average. So is that a yes . You buy on it . You know, you accumulate. You accumulate. Okay, jason. Were going to leave it there. Jason helfsteinoppenheimer. Speaking of housing, check out the shares of homebuilders. They were all in the green the other day. All in the red today. No surprise. Everything in the red. The dow down 250 points. Were back right after 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. You totalled your brand new car. Nobodys hurt,but there will still be pain. It comes when your Insurance Company says theyll only pay threequarters of what it takes to replace it. What are you supposed to do, drive threequarters of a car . Now if you had Liberty Mutual new car replacement, youd get your whole car back. I guess they dont want you driving around on three wheels. Smart. New car replacement is just one of the features that come standard with a base Liberty Mutual policy. And for drivers with accident forgiveness,rates wont go up due to your first accident. Learn more by calling switch to Liberty Mutual and you can save up to 509. For a free quote today,call Liberty Mutual insurance at see Car Insurance in a whole new light. Liberty mutual insurance. Welcome back to power lunch. Im diane olick. Sales would be stronger if there was more to buy. Inventory fell from june. Historically it rises this time of year, but, nope, nearly 5 lower than a year ago. Also the fefrttime buyer still not back. Just 28 of july buyers. Should be more like 40 . Whats the problem . High prices, especially on the low end due to that short supply. Back to you. All right, diana, thank you very much. The big question of course is what happens if and when Mortgage Rates move higher. Are home market prices going fall because prices get steeper . Lets find out. A lot of people buy homes not on the price of the home but Monthly Payments. If Interest Rates go up, will that go up . Not right away. Theyre focused the high price now. Theyre less concerned about Mortgage Rates. Theyre still very, very low so those mortgage payments are not expected to go up by anybody very much. If we see Mortgage Rates go up from 4 to 4. 5 , you would not be concerned . Anything under 5 i would not be concerned at all. Were not expecting a 5 30year fixed rate until next year. But you do see 5 next year, which used to be by the way considered very low. Somehow 5 became high. I still consider it low. So do i. But buyers, they are very myopic. They only care about what the rate was last month, not ten years ago. It will take some time. Whats the relationship between rates and prices. When it goes up, theyre looking for smaller homes. Bus the Monthly Payment is of being concern. 3,000 with taxes thats going to be a 300,000 home or 500,000 home depends operates. What i theyve allowed buyers to do is keep up with all the high prices even when wages and incomes have become strag nanlt. When the Mortgage Rates start to rise, theyre not going to be able to keep up. Were starting to see fewer contingencies where people say i ee not going to buy your house unless i sell my house. Weve been here before, nela. Are we getting overheated . Were seeing more waive contingencies. Theyre waiving them. The inventory has been so hot. Thats starting to change, but for june and july definitely. Competition has driven buyers to waive a lot of their contingencies. Nela richardson. Great pleasure. Its been great to talk with you. See you soon. The oil prices are about to cross. Will we go below 40 . Looks like not. Well take you live to the imex when power lunch returns. In the us, three in ten College Students drop out. But how can you spot whos at risk . The one who lives far from campus . The one who works the night shift . The one with new responsibilities . One thing cant tell you, but the right combinion can. Universities are using ibm analytics to understand pressures in and out of the classroom some expect to cut dropout rates by twentyfive percent. Ibm analytics is working to make education smarter every day. Wonderful, crazy mornings. We figure you probably dont have time to wait on hold. Thats why at xfinity were hard at work, building new apps like this one that lets you choose a time for us to call you. So instead of waiting on hold, well call you when things are just as wonderful. [phone rings] but a little less crazy. Were doing everything we can to give you the best experience possible. Because we should fit into your life. Not the other way around. Hello, everyone. Im sue herera. Here is your cnbc update at this hour. Jeb bush campaigning in New Hampshire says hes opposed to revoking birthright citizenship for children in the u. S. He says its more complex than just saying were going to build a fence. He also pointed out that senator marco rubio is the child of immigrant parents. Several People Killed after two planes collided midair. They were carrying parachutists for a air show. Several surviving by jumping out with their parachutes. Estimates show that driving in the u. S. Has reached a historic high, topping 1. 54 trillion miles in the first half of the year. That beat out the previous record of 1. 5 trillion set in 2007. Its more than double the amount of describing done during the first half of 1981. And it seems that everyone who quit smoke willing gain some weight, but a new study shows that those who smoked the most before quitting may gain more weight. Nicotine is a metabolic stimulant and an appetite suppress end. So when people quit they eat more because their appetite increases. Thats the cnbc news update. Back to you. Its still a good idea to quit even with the weight gain. And the 1. 5 trillion mile, no doubt, just on the new jersey turnpike. Or your recordbreaking trips to wisconsin every summer. That alone. See you later, sue. It didnt happen today. As a matter of fact i think the closing prices are going to be just around 40 for september and october. I do want to make the point that we had a little bit of a weaker dollar today which was supportive of us prices but brent stayed in negative territory for most of the day. Still, traders are telling me, no. Flat lining, not declining. Saudi arabia, decreasing. Also russia, the weaker currency helping lower production costs there. We had a gazprom executive saying thatly pump oil even if prices are down. Were probably going lower. Back to you. Thank you very much. Let me bring in a cnbc contributor. Making a statement, likely lower ahead, jim, do you agree . Everything jackie mentioned and she and i discussed the at length. Everything we discussed is the reason weve had the 70 move lower. Coming within spitting distance of a 30 handle, i think were going to get there. I think were nearing an end. I want to see it go below 40 and see a capitulation on a strong move, high bottom. But i think were getting closer to a spot to buy it than sell it and i know the supply story is quite big. It is. We need to see demand pick up but were seeing demand concerns. Demand, jim, is going in the opposite direction. This is whats interesting. Okay, some of the other commodities particularly like gold is tells us maybe the fed is not going to tighttown way they said they were, but crude cant get off the carpet because the china story is kind of whats the big deal in this. Perhaps thats whats weighing on this. I tell you if the fed is not going to tighten and we take it off. I think if we do, we could probably see a weaker dollar. You know what . I posted this to my new Facebook Page yesterday. If youre looking for production to drop in the new term, good luck. Yes, rigs are coming off but heres what people dont understand, jim. If youve got an existing well thats pumping, youre not stopping production. 90 is up front. Its expensive to stop a well. Youve got that im not going throw in the towel mentality and in some cases you have to get the epa and others involved so wells that are pumping until theyre drained are going to keep pumping. No. Selling. You could even for your argument throw in countries like venezuela and other countries who ramped up production for the cass flow. I know. That was the same story that was six months ago, eight months ago. Believe that story existed. I believe it existed when it was 80 a barrel, 60 a barrel. When oil is propable you understand why people keep production because thats profit. Amen. Some people are losing money but theyre not going to stop even if theyre losing money because something is better than nothing. I know. And thats one of the reasons weve had this cascading level of prices over the last two months. We just reports on driving being at an alltime high. Still 90 of all land and air miles are powered by crude. We use crude. Like i said at the beginning, im not jumping in and trying to catch a falling knife. Sn. Were a molecule nation. Thank you very much. Appreciate it. Thanks. The big news story that broke less than an hour ago. Greek Prime Minister Alexis Tsipras sri signing. Hes calling for elections as soon as possible. They could be as early as september 20th. You can see the green tenure note yield under 10 yielding a bargain 957 and the etf down by 2 . Down by 2. 3 . Thats the big global etf. Melissa. Brian, here on the nasdaq, were watching 4902. That was the interday low. Lets take a look at some of fwig cap stops microsoft is down 1. 5 . Last night on fast money i spoke with him john thompson. Business in china has been difficult, make no mistake about it. It has a lot to do with chinas government and wanting to crack if you will these Large Companies with substantial Revenue Streams in the country. Take a look at some of the other countries doing business in china. Apple is down by about 2 . This is close to session lows right now. Cisco down 2 . Hewitt packard down with earnings. Thats alsz down by 1. 6 and shares of intel. We should also note shares of twitter, were watching that one. Ipo price is 26 a share. Its just below that at this hour at down below 5 . All right, melissa. Thank you very much. Gold, as we mentioned rising to a one month high. Is it finally time to buy this beaten down group . Let us ask the trading nation team, erin gibbs. Erin, any reason to buy the gold . This is a bit interests. When you look at target prices right now, wall street has the average target price about 35 afwov where theyre trading today but i have some real concerns about the valuations that are going into these companies particularly the discount rates that are used. These are used to calculate the present value of the companies and when you look at the discount rates, theyre typically i using rates that are lower than what the companies are actually paying for debt, let alone taking into account that we expect Interest Rates to go up. So their net present value, the value of the company that we think is going to be okay can actually be lowered by like 2 1 2 times when you actually use more like what theyre paying for debt. Another issue is companies typically i think that you should trade at a premium to your net present value, your net asset value, but these companies have been so poorly managed recently, frequently misusing the upsides of gold and as golds going down, they should probably be traded at a discount instead of a premium. Okay. Thats a long no on the gold. Long no, sorry. Boris do, you see the gold miners coming back . I think its very much sentiment based. Then if you have the speculation, theyre going to push it back. All of that could create a bed of buying for gold and just by that bed of buying for gold miners, its all going to be sentiment driven. Okay, boris and aaron, thank you very much. A good discussion on a group that is hot, at least today. Folks, a reminder that the dow is near session lows. Were not quite there yet but thats a number to keep a mind on. Just remember even on down days there is always opportunity, maybe more opportunity on down days. That is why street talk is next. Keep it here. Okay. We are at a session low. Two days after getting an okay theyre selling itself to valeant for 1 billion. Our biotech reporter predicted this on tuesday. Its a private company. So the stock point might not necessary by be there but folks tell me if this drug sells it could be a potential takeover target for a specialty comny like valiant. Wow. She nailed that one. Sos the overall market. This is a huge deal for privately held sprout which is only 25 employees. Brian. All right, melissa. Thank you very much. As you probably heard me muttering, wi are now at session lows. It looks like the dow is trying to recover for just a bit. Thats not the case. The Dow Jones Industrial average is down nearly 300 points. If the momentum continues. s only going to take a few to get there. Brian, we should note the nasdaq broke at 4,900. Its taking a leg down. A lot of these big cap stocks are, in fact, at session lows. App apple, for instance is down. So were definitely seeing the selling pick up here. Yeah, we are. Its not just been today, melissa. Its our stat of the day. Its a little bit ugg but important. 125 members of the s p 500. So basically 5 of that index are not in correction territory, down 10 . Theyre in bear market territory. 25 , melissa. Of the s p 500 are now more than 20 from their recent highs. Theres actually about 40 companies that are down more than 50 from the recent highs. The majority of them, of course, are oil and gas. With all due respect to every gue guest whos ever come on and said i wonder if well start to pull back. Its unequivocally good for the u. S. Economy and probably for the stockmarket. I think we know that is not the case anymore. Yeah. As im getting from the producer, i think the number is now 300 companies on the s p 500, brian. So its getting worse as we are right now grappling with the selloff. The s p 500500 dow by 1 3 4 percent. So were seeing this pretty much across the board. Listen. Even on down days theres time to look for the opportunity. Even better times. Youre supposed to buy lower and sell higher. Lets do street talk. Lockheed martin upgrading from a neutral target. Thats about 19 upside. The analysis says here based on further analysis of the sikorsky deal hes comfortable with lougheed hitting 5 billion or more Free Cash Flow in 2017. They won a wbig contract with te navy two weeks ago. Theyve been doing quite nicely. Take a look. Theyre all outperforms the market. Second stock, they reported earnings last night. Lower than expected revenue guidance. That was a disappointment there. Its a potential gamechanger but theres limited ability. Fair value, 21. Of course, its also being caught up in the kai na downdraft. Its sort of like the amazon of china. I thought alibaba the netflix of china in that they have streaming services and make their own content. Everybody loves to pay as much as possible for content. Please note sarcasm. Third stock, mattel, oppenheimer. They note that revenue has declined in a number of products, yes, but theyed a that those are, quote, well known problems and pose little risk of a new negative surprise. They think the underlying business of mattel could be ready to resume growth in profits next year. 25 or so upside. This stock has been crushed in the last year or two. Down 34 in the last year. Theyve had highprofile executive departures. One happened last week and that was the highest executive level since the ceo left in january. You can look at it two ways, brian. Its good they could be cleaning house or maybe its a bad thing. Forget shrimp on the barbie. Barbie is becoming the shrimp. Sorry. The sales force will beat on deferred revenue billings and cash flow. The analysts say crm could be in play. The reports in april were that it may be up for sale and if thats the case it could be north of 8 80 a share. I know jim cramer is getting rt for his show mad money. Its a bellwether for growth rates. Crm, i know theyre not as important as oracle but its strong. Boiler mareks and others and oliympic global advisers, they say despite exposure to the coal market Babcock Wilcox see double digit earnings share growth possible. Their target on bw is 23. About 20 up. Have you ever talked about Babcock Wilcox . Yes. It used to be Babcock Wilcox and separated into bw and bwx technologies. Thats why the chart only goes back to june. Theyve had a nice 12month performance. And shares of simon simon are up. Dont do that. Dont roll your eyes. Im sorry. Its a habit. I know. Can we bring up a look at how good you rchlt best in the business worldwide for a business. The dow up 300 points right now. The nasdaq, though, to milliliters point, a bigger decline. They dont get their attention right now because thats a household name if you will, but the nasdaq is down 2. 4 . Gold is up. Everything else is pretty much down. Weve got a busy 12 minutes left. Dont go anywhere. Youre watching power lunch. Were back after this. Just a reminder the dow and nasdaq are at session lose. Dow down 29 8 points. Our dominic chu took a look at some of the beatendown stocks in the dow. He worked up a crowd sourcing magic. Viewers, readers and tweeters weigh in on what to buy on the dip. Its time to go back to you, our loving and loyal audience to ask which stocks would you sell. Dom is down to narrow down some names. Twteverybody out there voted and thk u vyucth les ke cahe wetartff with eight stocks. Faceok,jprganke a starbucks. This side here,chotle under armour, home depot, netfx. U voted. Jpmorgan andke. Then herehipoe a nelix. Weve gotten it down to our fil. The relative, perhaps overvaluation as viewed by viewers has come to this. Itsoingo be nik versus ipotle in our final. They have determined perhaps nike share coulde dor a deeper pullback if the market goes down and the same f chipotle. They beat out a lot of other ones here. I ll say this, it didnt play out the way i thought it would have from a reporting standpoint. Nike up here and chipotle up here, an interesting mix here of these types of stocks. Voting opened once more. Go to cnbc. Com. Tweet us with hashtag sell the rip. Well get more of that story this afternoon. Look forward to it, dom chu. Semiconductor close to session lose. Intel and qualcomm hitting new 52week lows. Take a check on shares of twitter. Down almost 6 . It did break below its ipo price. Well be talking twitter and market selloff on fast money tonight at 5 00 p. M. Sales force. Com. The stock is down nearly 4 . I referenced jim and mad money but i did not know this. Marc benioff is going to be on mad money tonight at 6 00. Did not know that. Sometimes you just get lucky. Thats one to watch, for sure. All sectors are negative today. Proxies doing the best. Utilities as well as telecom. We are seeing tremendous pressure on discretionary stocks being pressured by the big slump in shares of sney. Disney is below 100. It just broke 100 moments ago. Down by more than 6 right now. Stephen, weve got a lot of things expressed as concerns for investors. What are you focused on . Disney. That is a stock that i am long. Ive also bought one or two call puts this morning that will expire next friday. Im kd ofrotecting self because it scares the heck out of me. W areou so afraid of disn . Everybodtalking abt star wars will be the biggest movie in galy history. You think like that. I thoug it would bounce last week. Did bounce up to 108 109. This selloff these last two downgrades injured people who n the stock. U have to know how to defend yourself. Nwe d forg wn prices go down, its less expensi to b than the day before. Are you steppg into this market now . If you lookthat it the selloff i happening today, unfortunately since 2008 thi whole risk parity, high risk, low risk, risk , risk off nonsense gets talked about a lot. Youoo at the marke today in media or semiconductors or anything with a hir bet sms to be selling off harder than anything else. Me pple areryin to derisk the portfolio. I ink w too mh i gting thrown out with the bath water here thiss a rket tha wted a selloff. It a selfulfilling prophecy. It sounds likeou a dismsinghe sello thing. Its people taking profit at ispot. I think when everything sells off the exa sam basn somebodys risk parity program, its complete noense i would say the area im focused on, the hom bldin sect. I think it has the best fundamenta ove the nt coup of ars. It the anthesi o energy. Growth in Home Builders look the bestvernyonelse. I like some of those names in the homuild irspace. Thank you very much for joing us great insight. Thank you. Apecia tha melissa, you have a big night on fasmoy. This will be an interesting one. Nasd is seson se. We are going to be watching this oselsill the clong ll. As g to closing bell oil nuar2016, showing a lot of weness that contract at 43. 456789 clong bell picking up coverage right now. Hi, everybody. Welcome tohe clong bell. Dow is down 300 points. M klyvansthe nework stock exchange. Im bill griffeth. Im here thiss t last ho of adinstoc selng f. Lo of moving parts and pieces. Globowwn fea appear to be weighing on stocks. E feaybe getng adjusted to the idea maybe we will get liftff i septber. Both the downd the s are now negative for the year. Theasdaqs on track for its worsmontlm thr