And chinas economy bottomed out. Brent and wti climb back gains after settling at the lowest level in 2009. It was a rough session overnight. Housing a big part of the story. Were just hearing from one of the luxury Home Builders reporting q3 earnings of 36 cents. Thats well below the analyst expectations of 49 cents. Revenue was to come in around 1. 03 billion and revenue coming in line with expectations. We should point out the stock closing lower yesterday following the Broader Market sell off losing about 4. 7 but year to date up about 5. 7 . Responding to the housing data over the past couple of months but back to the market sell off. The dow seeing a 4,000 point move in one session. We just captured the highs, lows and where the dow closed. At one point in the beginning of trade we saw the dow down by around 1,000 points. Some traders sending me pictures just showing traders clued so their screens and cnbc saying what kind of ride are we in for . We saw the dow coming off the lows of the day Still Closing down in triple digits and this could be a rebound tuesday with the dow indicating a higher move by around 300 points. We did get upbeat Economic Data. That number coming in higher than expectations but the economist in germany for the ifo index saying that the china factor right now is not priced into this data. So the china worry could impact that number Going Forward. At this point, though, european markets shrugging off concerns over china. Higher on the day by 2. 6 on the xetra dax. Cac 40 up 2. 8 and also higher by around 137 points. This after a rough session in asia. Would you be better off if you hadnt witnessed the thousand point drop yesterday given that epic come back . If you stepped out for lunch and you went to buy your sandwich and called your mother and come back you missed a thousand point drop. A three hour lunch you would have missed it. But media and investors were documenting that move. I mean psychologically. Because watching it youre like no, no. And then again the recovery as well. It closed down by 7. 6 . Thats the lowest level since december of 2014 hi, sri. What happened in asia. Charcoal tuesday theyre calling it. Still quite negative and brittle and crumbly. Yes we have seen a bounce in the markets but i cant help but feel that investors are going to fade this rally until we see some meaningful intervention by the authorities in beijing so this is where we stand. Off by 7. 6 . So well below the psychological handle of 3,000 and we continue to see the pause points in the market. 3,100 went and then during the afternoon session we violated 3,000 key psychological level for the shanghai composite. If you like the technicals, 2,800 is the next level to watch. So what ive been hear as good that this is a market that does need to have some stimulus. It does need to have some very aggressive bold action. Its not their job to arrest these declines for the stock market but the economy is certainly not firing on all four cylinders and the signals out to the labor market are looking sluggish as well. What i have been hearing and i want to leave you on this note is that we could very welsey a crafted package of monetary and physical support measures and friday is the day i have been hearing about the possibility of that announcement being made. Watch out for that. It can or may not happen but im saying at this point in time the authorities may very well intervene and it could be this week. Thats where we stand. Back to you. Thank you very much. We have been asking how much do you think china is to blame for the market moves weve seen recently. Are other factors playing in more . Is it all down to china . We were having a difficult cousin here. Im arguing is it more down to the fed. I think its weakness in china. Getting their head around how much will impact trade Going Forward. Let us know what you think. Joe tweets in china was indeed the catalyst. It was the fed that kept the market trading in a range before that. You can join the conversation on Worldwide Exchange. Email worldwide cnbc. Com. Find us on twitter or personal handles both on screen now. Let get a market expert into the discussion. Jim russell joining us this morning. Good morning to you. How are you doing . Good morning, so far, so good today. What did you make of the sell off that we saw yesterday . Pretty wild day and theres no question that the markets struck us as irrational on the market open yesterday. We saw a number of Great Companies fall 20 . We thought that was a bit silly. We were encouraged by the rally back around noon eastern time and a little bit more discouraged toward the end with the market sell off. Theres no question were going to see a pretty stiff bounce today. We would be skeptical of the sustainability of that bounce but we think theres more volatility of the down side ahead. The dow indicating a higher open. Up 325 points in premarket trade suggesting there are some bargain hunters out there. If you were to do some bargain hunting and take advantage of the decline in stock price would you put money to work. Were a stock picker at the end of the day. We think that Income Growth really cushions Downside Risk and provides investors with an income flow and total return. We think thats a good proposition. We added to home depot, United Health care, kroger in recent months. We think all of those three provide good value without the exposure and without china exposure and we think that technology have been hard hit and theres probably bargains in those three sectors specifically. Why are you skeptical that the bounce necessarily has to become more of a correction. If you look at the fed were taking off the table that theyll hike in december. Next year some point. Possibly october. We have very low rates here to stay for the time being. In europe we have rates very very low and stimulus as well. We have an economy recovering stateside. Why wouldnt we necessarily see a continued recovery . Thats a good question and the jury is out on the sustainability of the balance. We hope the market balances and goes from here but we think the route of the market volatility is Global Growth expectations heading down. Of course lead by china and the emerging markets in general. We think it will splash europe and probably the United States as well. What we have seen is not much hit to the earnings estimates just yet. You mentioned the german ifo and perhaps some things still to come from china in europe, germany specifically. We think that could also hit the United States and Second Quarter earnings for instance, were hearing from companies of slow International Growth and strong dollar effects. So we think that Earnings Growth could slow over the second half of 2015. Perhaps 2016 earning estimates are too high. We think that frankly the multiples in this last two, three, four trading days have come down so the s p 500 trades that are reasonable. 15. 7 times our estimate of 120 a share. The markets entered into this phase a little bit expensive. Look a little bit more reasonable. Maybe on the high side of historic ranges. Interesting. Especially with the weakness in the dollar weve seen over the last two weeks. Well hit the pause button quickly. I want to get our audience caught up on the to bes moving right now. They have been underperforming over the past couple of weeks today rebounding. Helping move to the upside some of the stocks you should focus in on. Profits at a decade low at 6. 4 billion. Now in a statement chief executive Andrew Mckenzie says china would continue to be volatile and lower demand forecast for steel but a 4 billion Cost Cutting Program is supporting shares today helping the global miner raise its dividend. Now stay tuned, ceo Andrew Mckenzie will be on squawk on the street later today at 9 15 eastern time. Now, meanwhile, reporting a 49 decline in first half profits after revenues dived on the copper route. Now the company they said, though, that prices had reached the bottom. The ceo adding that theyre well positioned to deal with the sell off. Investors also cheer the cost savings measures. Lets get you caught up on the oil trade after losing 5. 5 in yesterdays trade. Slightly higher by around 73 cents. Brent crude the gauge of 43. 45. Still trading at a multiyear low but green in todays trade. Oil stocks in response responding positively. Let me repeat those two words. Responding positively. At 1. 3 . Higher by around 4. 4 . Now be sure to stay tuned here to cnbc throughout the day. We have great guests coming up throughout the channel. Throughout the session. Former secretary treasury larry summers. Nasdaq ceo and the legendary investor wilbur ross all sharing their thoughts on this nutty market reaction. Stay with us. Youre watching cnbc. Can a business have a mind . A subconscious. 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 . No students ever been the king of the campus on day one. But youre armed with a roomy new jansport backpack, a powerful new dell 2in1 laptop, and durable new stellar notebooks, so youre walking the halls with varsity level swagger. Thats what we call that new gear feeling. You left this on the bus. Get it at the place with the experts to get you the right gear. Office depot officemax. Gear up for school. Gear up for great. 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 ringing] 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. Hi, everybody. Welcome back. Still watching Worldwide Exchange. These are our headlines today. U. S. Futures pointing to a higher open after the roller coaster ride on wall street. Extending losses falling just over 15 in only two days and monsanto improving its offer for syngenta sending shares in the Swiss Company higher. A rebound here on tuesday after it pushed major equity index into correction territory. So is the sell off over . Lets get you a run down of what to watch this trading day. The home price index out at 9 00 a. M. Eastern. So a lot of Economic Data to watch out for in todays trade. Lets bring in jim cramer, host of mad money joining us on the phone. A pleasure to have you on the phone here on Worldwide Exchange. We want your thoughts on u. S. Futures. Does that tell us the sell off is over. Always good to talk to you. Miss you in new york. This kind of market is not even for professionals. Its completely out of control right now in terms of volatility. We need to see it go on hold. I know theres a report that says they might be popping up stocks. Id love to see Commodity Prices and the euro stay strong. They would be good for the u. S. But you need the whole combination. You just had one. The big question is where does one find refuge given the rise in volatility, how do you find safety . Theres a lot of places to find refuge. It just requires you to stop thinking totally about the metals and mining and oils and big internationals. For us in the United States theres companies that do well in this environment because theyre commodity takers and not commodity makers. A general mills, a pepsico, kimberlyclark, you never really get them at a discount until something hike this happens. In the United States we have home depot, nordstrom, kroger. These have nothing in china and if you want to play the market, you should do it with an index fund and not with individual stocks unless theyre largely domestic or levered to Commodity Prices. Good to have you on. How about the tech stocks and how about apple in particular . You were in conversation via email with tim cook. We were talking about that earlier as well. What do you think investors will be thinking when looking at apples exposure to china. Bhp, i dont know, theyre not the most trusting source given how incorrect they have been about commodities but i believe when you look at a situation like apple and look at the email that tim cook sent me its indicative of something that i dont like which is the mistrust of companies. Tim cooks statement came out at 9 02 and it plummeted anyway. Why would you sell a stock that has 10 times earnings with the best Balance Sheet in the world unless youre just panicking that you dont know what youre doing. You should have known to begin with. Apple is a classic case of a stock you should own and you shouldnt trade. It doesnt fit your thesis. So you sell apple anyway. This is the kind of moronic activity that i see quite regularly. I wish i were younger soy wasnt so cynical. Do you think the drop will make these tech stocks more attractive to buy Going Forward . Its a case by case situation. H Hewlett Packard was worth it in the sum of the parts. If you end up with a stock that is selling last Years Technology youre not going to do well. My Charitable Trust bought sysco yesterday. 3 yield and everybody hates it. Thats my kind of hate. Bring that hate on. Looking for the names with growth and defensive characteristics. Exactly but its an irrational market filled with people that are 7 years old that have no idea what theyre doing and are scared of their shadow and decided we should take our queue from the worst stocks in the world which are the chinese nasdaq stocks and if the government were to wake up and let those stocks come down to 2200 where they were last year at this time we would start realizing its not so bad and if the Federal Reserve clowns would stop talking and just let one person speak, the market would redeem sanity but right now limit orders very careful only by the most regular high yielding stock. Certainly an interesting time in the markets and its that uncertainty that perhaps is keeping investors on edge. A pleasure to have you on the show. We will see you on squawk on the street at 9 00 a. M. Eastern. Thank you gjim. Now richard fishers are saying markets are hooked on the heroin of quantitative easing. We talk all things fed after the break. Youre watching Worldwide Exchange on this tuesday morning. Well see you in a second. No students ever been the king of the campus on day one. But youre armed with a roomy new jansport backpack, a powerful new dell 2in1 laptop, and durable new stellar notebooks, so youre walking the halls with varsity level swagger. Thats what we call that new gear feeling. You left this on the bus. Get it at the place with the experts to get you the right gear. Office depot officemax. Gear up for school. Gear up for great. Its likely the central bank will start hiking rates sometime this year. In prepared remarks yesterday he didnt go into a lot of detail on what may be a change from his previous view but he says that market turmoil, the stronger dollar and the drop in oil are complicated factors in predicting the pace of growth. Barclays capital is pushing out its call from the feds first rate hike from september to march. On monday the bank says theyre solid justifying a rate move but the fed is unlikely to begin hiking in this environment for fear it could further destabilize markets. Instead theyll delay while devaluing the volatility. Thats results in the dollar weakening against the euro. Holding on to 115 against the dollar in todays trade. More with jim russell portfolio manager. Stronger dollar of course has been the consensus trade so far in 2015 but given the uncertainty around fed policy would you go short the dollar at this moment or just stick to the sidelin sidelines. We think its inevitable. The fed has told you they would like to increase Interest Rates before the end of the year. That will happen probably heading toward december given the recent market turmoil and we think a pause and not september but a december initiation of the first fed action is going to be responsib responsible. So we do think dollar stronger for longer. The euro is in the middle of the qe program which is very aggressive so we think we get back on track before too much longer here. We do think the dollar has sold down because selling it has been a theme over the last couple of trading days. Its interesting when you look at japan for example an and the euro zone and think about what the policy makers must have been thinking yesterday sand i saw speculation this morning that if they were to continue higher we have to see verbal intervention in order to have a 120 level for an economy here in europe still trying to recover. We think that the current level of the euro dollar will prove to be temporary. Same with the yen. Many people sold the dollar and perhaps bought other currencies. Weve seen this all over the u. S. Stock market where the best companies have been sold down regardless of the fundamentals. Jim cramer just spoke to the craziness of some of that strategy so we think the dollar has gotten caught up in that and we think the dollar resumes its strength and march higher before too much longer. Perhaps as soon as today. Well leave the discussion there. Thank you for sticking with us here on Worldwide Exchange. Now, coming up, did you need a black coffee after black monday . Find out why one coffee ceo told his staff to be nicer to customers amid the market route. 10 30 a. M. Here in london. Youre watching Worldwide Exchange. Im seema mody. These are your headlines from around the world. Dow poised to open higher after yesterdays wild swings. This as were seeing a dramatic come back in europe with major indices trading in the green. The picture bleak in china. Falling below 3,000 for the first time in 8 months. Dennis lockhart indicates a china inspired sell off could delay the first hike. This as barclays pushes off its forecast to a lift off of march next year. Chinas economy bot tomd out as profits hit a ten year low. Brent and wti also clawing back gains after settling at the lowest levels since 2009. Although the dow, nasdaq, and s p 500 still in correction territory here on tuesday, premarket trade suggesting a rebound. The dow up about 339 points. Nasdaq up about 105 points. This as asian markets continue to sell off. The china market is losing about 7. 6 in todays trade although the hang seng slightly higher on the day. The nikkei 225. The japanese stock index losing about 4 but despite the volatility in asian markets, european stocks very close to session highs rebounding here on tuesd tuesday. Were up about 3 in todays trade. This after the past one month european stocks lost about 10. 6 . How do you make money in these markets . Do you want to take advantage in the drop in stock prices . Heres what a range of investor versus been telling us. This is an opportunity to get into two types of stocks. One is the big ecosystems like apple or facebook or amazon but not all of them. We dont like alibaba in china for example and the second is to get in those are riding a number of technology cycles. More cycles than weve seen for a long time and the other is to get into tech stocks that are Market Leaders in specific cycles like fireye which is the Market Leader in unified Threat Management which is the sector of Cyber Security that would do well. Were still underweight emerging market equities. The only overweight we have is europe and europe is corrected 20 . The fundamentals still look good. I have been selling for sometime and i dont think theres any reason to buy today. Theres some sense of capitulation. We discussed equities but emerging market is a dead trade. Let me just get you up to date with data that just hit our wires. The South AfricanSecond Quarter gdp data quarter on quarter seasonally adjusted and analyzed. Consensus for plus 0. 5 . When looking at the unadjusted growth, 1. 2 year on year consensus was for 2 so were looking at big misses there coming through from the growth figures from south africa. When looking at the First Quarter gdp its unrevised that 1. 3 quarter on quarter and year figures is 2. 1 year on year. Asian markets suffering another day of losses. Lets get the full story with sri live in singapore. Hey, sri. Hi, seema. It was an interesting day all in all. Risk aversion is easing in some quarters of the market. I would fade this rally if i were you. But what do i know . Im just a diluted journalist. Let me talk about the shanghai composite. Another negative day and another volatile day. We close below the psychological handle of 3,000. At lowest level since december 2014 and whats interesting here is that we punched through several key psychological points. 3,300. And then we went below this level of 3,000. Ive been saying this for quite sometime. Do not count out the pboc as of yet. I feel they still could come to the market and they could come to the market quite strongly. A fair few people have been telling me that it could happen this week. It could happen on friday. Im not saying it will happen. Im not saying that its inevitable but theres a distinct possibility that they will come to the market and try to salvage and restore some confidence in the economy at the market by association as well. If they are going to do that and if theyre going to do it meaningfully then it has to be a crafted package of monetary and physical support measures and it has to be targeted. It has to be aggressive and has to be directed at those banks that have high exposure to loans in the smes. So that way would avoid the misallocation of capital which has been a fault of the pboc in the past. They have the ammunition. Theyre behind the curve. So watch out for that this week. That could be the saving grace for these markets, especially Mainland China equities. As of now, silence from beijing. They remain on the defensive. I dont think this is over yet in terms of the sell off. Thats where we stand. Back to you. Thank you so much. It will be interesting to see if china raises its Bank Liquidity to boost lending or if they put other Financial Measures in place to curb the volatility in the stock market. Moving away from this path they were promoting earlier this year. Or maybe they say were out. Were done. Were done trying. Its completely up to you. We have been asking you how much is china to blame for the market moves and you have been writing in. Thats right. Brandon tweeting in says he thinks its a 40 chinas fault and 60 the worlds fault for investing so heavily in that market. A lot of opinions and perspective on whats at the root of the market volatility we have been seeing. The dow was down 1,000 points. That was jeinteresting to see. He said Financial Service sector already accounts for 30 . Good morning, linda. She says the strong dollar will kill png in oil. A bad market today. Loads of you writing through on email as well. Keep them coming through. Worldwide cnbc. Com. Twitter as well. Either cnbc worldwidecnbc is is our email but cnbcwex on twitter. Some of you saying how do you find refuge . Buy some utilities. Keenan saying its time to buy gold which yesterday i found the move in gold very interesting because last week we finally saw some gold bugs come in and that sent gold to a six week high but yesterday no love for gold. Falling in tandem with the rest of the commodity market. That was again what we were talking about yesterday morning. Throw the baby out with the bath water and everything goes with it. That was taking place. In terms of european equities one of the dominant forces has been ecb, Monetary Policy as well as the weaker euro but now investors are questioning how much qe can feed through to the real economy. Goldman sachs downgrading their outlook to neutral. They have been big bulls of european equities over the past couple of months recommending clients get higher exposure to europe over the u. S. Well see how that changes. Keep your tweets coming through and emails coming through as well. Im still thinking about the currency moves also in the yen. You had the japanese finance minister pushing the yen up too much further. It was rough and undesirable for the economy. Theyre trying to reinflate it. If the yen and euro keeps going up its bad news for the policy makers. Weve seen a correction in todays trade. Bad news for earnings. The weaker euro is a big part of the case for owning the european stocks that have High International exposures. One of the reasons they have been doing so well is the bet that the weaker euro will fuel profitability but clearly thats not the case or were questioning whether that will be the case Going Forward with the euro at 115 against the u. S. Dollar. The highest since february of this year. Greece closing town by more than 10 yesterday. They were put on a sideline in terms of the politics. Up by 6 this morning. Looking at the other top stories today, monsanto has increased the takeover offer for syngenta. If a bid to get the company to negotiate on a tie up. They value syngenta at 47 billion. It translates into 21 swiss franks per share. Sygenta shares sharply higher up by 22 or so. Boeing told workers it expects to cut several hundred jobs this year thats due to a downturn in spending and delays on orders. Following recent market failures and uncertainly from financing. A total number of cuts are being finalized and some people could find work elsewhere in the company. Boeing higher by around. 5 but if we step back for a second the dow Jones Transport index in correction territory. The Global Market turmoil may be raising Blood Pressure sending people scrambling for another cup of coffee or two cups or three cups or four cups of 17 cups. He sent a memo to the 90,000 retail employees telling them to be extra nice to customers. Theyre always nice, arent they . Our customers are likely to experience an increased level of anxiety and concern. Lets be very sensitive to the pressures our customers may be feeling. Hes tried to rally people around the economy before in 2012. He wrote come together on cup id slap somebody if i got a come together cup. Dont call me by my name when i get a coffee. They always say whats your name. I dont think quickly enough. I want to give my real name. Because youre a celebrity. No. Im kidding. No, because i just want my cup of coffee and i want to leave again. They never get my name right so i usually say sarah or Something Like that. No one can get seema right. Its too hard. You be sarah and well see what happens. Lets do it. Coming up on Worldwide Exchange, more on the market turmoil were seeing plus elon musk took advantage of the buying opportunity. Find out what hes buying on the cheap. Thats coming up. Try the superior hold. Of fixodent plus adhesives. They help your denture hold strong more like natural teeth. And you can eat even tough food. Fixodent. Strong more like natural teeth. Fixodent and forget it. Many investors sent to the sidelines. In the meantime the index is trading in correction territory. Thats right, defined by a 10 move to the downside for recent highs. Here is exactly where we stand. When you break out the 500 stocks that make up the s p 500, 436 are trading in correction territory or worse, 295 of the 436 are in bear market territory which is 20 below the rekrecce highs. Energy is one of the biggest losers. Down 35 from the recent highs on the back of the oil prices and commodity route were seeing across the world. Heres the naming selling off. Down 19 . Marathon down 16 but its not just energy. Bio tech has also been selling off, vertex down about 16 from recent highs and another big one has been in the tech space t Consumer Tech space, netflix down about 21 . This after being the best performing stock on the nasdaq 100 so far this year. But the selling continues. You can see some of the other tech names including microsoft down about 11 . Banks have been rallying on the prospect of the fed raising rates but now that were not sure if september is on the table, some of the big banks selling off. Goldman down about 11 and jp morgan also down a similar amount. Lou back to you. Thank you. Well, elon musk is taking action loading up on shares of his Solar Company days after a high profile investor says hes shorting the stock. Landon is at cnbc headquaters. Good to see you. Good to see you too. Elon musk is buying more shares of solarcity increasing his stake after they fell to a near two year low. He is solarcitys chairman and the biggest shareholder. He bought more than 123,000 shares for about 40. 48 each or nearly 50 million. The move boost his stake in the company to 0. 6 . He currently opens 21 million shares. His purchase comes after the edge fund manager told cnbc on friday hes shorting the company which drove the stock down 13 to the lowest level since october 2013. Shares rebounded on monday. He likened the Business Model to a sub prime lender. The problem with solarcity relative to some of the plays that are industrial and commercial plays is theyre a residential model and the residence endstial model, its prime Financing Company in effect. You lease the panels from solarcity and they collect the lease payments. So in effect if youre put on the panels you have a second mortgage on your home because you hope its an asset but in many cases it turns into a liability. Solarcity was cofounded by peter and lendon receive. He said his sub prime anlage is wrong and intentionally misleading people. Back to you. Good to see you. Thanks a lot. Before we head to break, heres your headlines. U. S. Futures point to a higher open after yesterdays roller coaster ride on wall street. The shanghai composite shedding over 15 over the past two days and hundreds of job cuts could be in store at boeing as u. S. Military spending slows. Youre watching cnbc. First in business worldwide. Can a business have a mind . A subconscious. 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 . Now we have a full screen of green and a couple of squares of red. So its completely reversed. Markets were higher quite a bit and weve seen a jump and hanging on to these levels. The stoxx europe 600 up. So gains on the back of a session yesterday. Were almost 450 billion euros worth of money was wiped off of european shares. So a huge, huge, huge session yesterday with lots of volume. We had the worst performance since 2008. The shanghai composite continuing to see weakness in their session in the overnight trade but some gains also happening in asia and our u. S. Markets still being called quite a bit higher. Yeah, to the upside. The dow is up about 300 points in premarket trade after a roller coaster ride for the dow. At one point down 1,000 points but closing much higher than that. Dow up 341 points. S p 500 up about 4. Just want to point your attention to goldman sachs. U. S. Equity Research Team is fairly bullish saying they expect the s p 500 index to rise 11 to reach 2100 at the year end. They say the u. S. Economy will avoid contagion and will continue to expand. Theyre recommending clients invest in financials and information technology. Theyre bullish on financials and technology and Underweight Energy utilities and materials. Joining us is terry. Good to see you this morning. What are your thoughts. Good day. What are your thoughts heading into a session where you have the dow being called up in the triple digits. Youve got european markets bouncing by 3. 5 . Do we continue to buy . I dont think so. Certainly not aggressively. There maybe pockets of value in some of these markets but i dont think this is a broad buy. Let me say that its common in economics at least to realize or to think that volatility follows volatility. In other words big down days or big up days are followed by big down days or big up days and that impulse lasts for a few days following a shock like what we had over the few session. Its not surprising that markets are up today. I wouldnt take that to mean theyll be up the next few days consistently. Help us understand what it was like to be on the Trading Floor yesterday . Were investors trying to position themselves and book their losses or were they waiting for the volatility to subside . Judging by the level of silence you would think everyone was on the sidelines. People just freeze up. Our desk was silent. I got a call from a recorder that asked how loud things were on the desk. I said nothing. Thats typical. Is it china or the uncertainty around fed policy . Its both and we cant really separate the two. One of the reasons why china decided to effect the devaluations is their currency was getting too rich relative to their regional competitors. Why were regional competitor currencies getting too cheap . In part for the tightening. You cant separate china from the u. S. Or the policy actions from one or the other. If hi to point to something today its still predominantly china in the sense that the lack of confidence in policy making aplies mu applies more to china than the u. S. Whats the strategy . How do we go from here . Caution is the strategy. If youre talking about stocks theres clearly pockets of value out there. Sometimes it will depend on your view of the global macro economy. I think stocks are cheap. Some are yielding 6. 5 dividend deals. Thats cheap. Id be a buyer if i thought they were going to stabilize but this is not a broad call on the market rebound. Keep in mind Revenue Growth in the u. S. Has fallen. Earnings growth has fallen. Multiples are not very low. In fact, one can argue theyre quite high and the fed is still going to tighten. Thats not a recipe for jumping in. The question is when. Do you still think september is on the table or are you in the camp of december . September is always on the table but im more in the camp of december. What you have to look at in the u. S. Are inflation break evens. Thats the markets pricing of future inflation. Its collapsed. Its difficult to foresee the fed raising this quickly in the face of this volatility when no one sees any inflation coming. Hopefully well get clarity later this year when the meetings kick off. In the meantime well leave it there. Thank you for joining us. Now be sure to stay tuned to cnbc. Former treasury secretary Larry Sommers is up. Nasdaq ceo is up as well and wilbur ross. Theyll all be on the channel. Goodbye. See you tomorrow. Mornings. 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 ringing] 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. Good morning, maybe time to buckle up again. Another wild market ride. China sliding 8 overnight. Ending the session at an 8 month low but china really shouldnt matter here, right . U. S. Equity futures today are trading sharply higher indicating that the dow could jump 350 points on the market open but its a long time until 9 30. And a crude bounce back. Oil prices rebounding more than 3 this morning but the commodity still sits at levels not seen since 2009 and 3 of 40 isnt what it used to be when it was 100 is it . Its tuesday, august 25th, 2015 and squawk box begins right now. Live from new york where business never sleeps, this is squawk box. Good morning, welcome to squawk box right here on cnbc. Im Andrew Ross Sorkin with joe kernen. Becky has the day off. Our guest host is bob dahl. Hes going to help us try to figure out what to make of this roller coaster ride in the markets. Thats where we will go right now. Lets get right to the markets after yesterdays crazy ride on wall street. Stocks look to recover today as joe just mentioned. Futures are pointing to a huge pop at the open but if yesterday was any lesson no one knows what will happen over the course of todays session. We should tell you the dow travelled nearly 5,000 points yesterday. Thats not from top to bottom t