Limits on u. S. Portfolio flows into china by delisting companies here in the u. S. The nasdaq is down by more than a percent. Take a look at the chinese stocks alibaba sitting at session lows down by five and a quarter percent. Eamon has been following this story and joins us reporter my understanding is those reports that cross earlier today got the markets attention are accurate the white house is considering measures that would limit port po folio flows from the United States into the Chinese Companies but and theres a big caveat here. Its a lot of different ideas on the table. Its not clear when a decision would be made or what that decision would look like or what the mechanics of this would be how could this play out in theres one option already out there thats been under discussion thats a proposal for a number of senators. You see them here including senator marco rubio of florida called the equitiable act. What that would do if passed is allow u. S. Regulators to have access through audits from chinese firms. Also the delist firms that do not comply that ban new listings that would be one way of cracking down on chinese listings inside the United States the buzz word youre hearing here is investor protection. The idea is they are looking for ways to protect american investors from investing in Chinese Companies that might not be everything they are purported to be but how all that plays out is really unclear at this point. This wouldnt be a broad blanket delisting even though were seeing the reaction play out in some of the stocks listed here in. Not necessarily as you have been pointing out throughout the day, some of the big concerns among investors are the knock on effects what happens to the index funds and the Pension Funds and the rest that move money if Something Like this were to come into play. Its not clear at this early stage where exactly this is going to land but it is clear they are looking for additional points of leverage over the chinese and the trade negotiations they are trying to bring the chinese to the table thanks very much. Lets head to the floor of the New York Stock Exchange where bob is tracking the market moves on this move bob. Positive territory in the s p. Chinese stocks, as you can imagine, alibaba which lists here exclusively had a notable drop all the other chinese stackstocks, jd dot com. Theres three questions that come out of this theres not clear answers. The first one is could the federal government could in into the exchange and tell them to delist the chinese stock its a tough question. Theres a contract between the exchanges and these companies that list down here. As long as you satisfy the standards, youre in accounting standards are the home jurisdiction. Thats been the rule for a long time you could argue we want to change the accounting standards, be auditing standards could be u. S. Company but that would require some changes in the u. S. Law. Second thing is could you come down here and tell global index providers to exclude chinese stocks i doubt it these are contract stocks set up between organizations and other entities around the world and they have a certain percentage of stocks that individuals want in their global portfolios be hard pressed to think how you could binterfere in that. By the way, kelly, we have a statement from nasdaq. Can i read this to you one critical quality of our Capital Markets is that we provide nondiscriminatory and fair access to all eligible companies. The statutory obligation of all u. S. Equity exchanges to do so creates a vibrant market that provides diverse Investment Opportunities for u. S. Investors. Thats a little long but i think the key thing they are emphasizing here is nondiscriminatory and fair access i think thats their way of saying we have to take a long hard look at these proposals back to you. Bob, the reputation of the u. S. Is being the center of the capital for Capital Formation around the world that title would be at risk if anything like this even looks like its halfway serious. Even under consideration but going back to the msci, even if it decides to continue listing these stocks, the delisting is the mechanism by which you immediately pull all of it all of those questions answered effectively if youre able to find a mek anymochanism through you delist chinese stocks here that may not be the only mek mechanism. I just want a trading halt i dont know what the answer would be what National Security grounds could you cite we haven a determined white hous that wants to move theres been questions about auditing standards of Foreign Companies listed for decades not just Chinese Companies what do you do with Russian Companies . What do you do with Turkish Companies that list down here . This debate has been going on for a while. It applies to china as well. I dont expect it to go away this goes back to 1934 the sec act lists standards for companies and how they can list as well as foreign entities that list here in the yiunited state. Its not a fiat process that would require changes to the administrative procedure act at the very minimum we should note the nasdaq shares are down. Thank you, bob all this as september is one of the worst months of the year for the markets. The dow and s p are higher you can see the performance. Only about 1 to 1. 5 the nasdaq is in the red wp with ipo risk and impeachment risk, are we entering a fall of worry . Rebecca is managing director and cnbc contributor ron is cnbc analyst and senior adviser. Lot of reaction in thoughts to what could happen in the u. S. Goes the route in terms of trying to clamp down on investment into china. This is something to the extent i have hair left to pull out is so complex. Can you have an executive order that mandates the sec stop trading in all if theres a well, theres a way. The amount of chaos that would be created by doing Something Like that is ill conceived, not well thought out. The knock down basics wouldinveu lost money, its a frauds. Understood. Understanding with a lot of other jurisdictions they list their shares because theres a way to use their rule of law if thats not the case with china and you have investors losing money thats not the argument this is trade retaliation. If you want to address that, that should come up in these bilateral negotiations with china about accounting standards. Europe has different accounting standards. So does every other planet listing that has been a process where we have overlooked that. Reconciling that is part of the trade process is different than coming out saying this is a legitimate investor issue. However they want to frame it. Id add two more points to what ron already said. First, we knew that this sort of path was possible back when the negotiations came to a halt in may. China said the u. S. Is trying to make us change our law thats a step too far into our sovereignty. This is the same path. China has to adopt certain america standards and maybe shay should but being forced to do that something that could be a threat to the trade negotiations maybe its smart leverage. It should be reflected in the markets. The second point is as investor we have to make sure were doing a lot of stress testing analysis because this isnt the only one out there you have the bill, bipartisan support. Doesnt go away despite what party is in power. Theres another one, ball win holly. That would tax any foreign capital, not just chinese capitol coming into the u. S. As a way to weaken the dollar and try to balance our balance of payments it detects any capital flows. It would be variable. The fed would know how much tax to levee to mangle capital inflo inflows. That sounds complex it seems difficult to see either of these bills get passed if they get support from the president and theres momentum behind them they can affect the markets especially as we go into election year. The third leg of this that im thinking more and more about, even though again very low probability, President Trump clearly wants a weaker dollar. He wants to balance trade. He can intervene he can tell the treasury you must intervene even though the capital to do so would be very, very limited, the symbolic act would be huge then does the fed usually, historically the fed supports intervention, would that go along . If they limit dollars that would make a stronger dollar and not a weaker one i agree they have to sell dollars those dollars are limited. They can disrupt the Federal Reserve to cooperate the way they have cooperated in the past was by lowing Interest Rates in conjunction with dollar sells. Its a complex problem when you start getting down to this level of granualarity. Thats the big picture take away if we thought the tweets and the changes in policy around trade created uncertainty and weigh down Company Decision making, this is more of that even if we have a trade deal then maybe we have a capital war. Our business is even if we have trade deal, great, home free we have clarity. Lets invest or say we dont know the rule offense the road the casualties would be the same casualties of the trade war. On the back of this headline were seeing these poster children of trade. The semiconductors these are the kind of stocks this took another leg down and are still at session lows. When you go down the road and think about how china can ret retaliate against us its making it difficult for u. S. Companies to do business in china. Ill be worried about that in terms of our exposure. Although they reduced their direct investment in the United States they do still have a stockpile of bonds i dont think thats as big a problem as i once thought. They can devalue their currency. They did today. Not devalue it the dollar definitely appreciated against today which is not a stock given the snooze and they will use that to help support their exports and its going to push up the dollar. You have to remember, too, they have a basket of trades against. So when they move theres a strong correlation between what happens with other asian currencies and the euro. The result of this is a stronger dollar and that goes against what this administration is trying to achieve. It does not appear we have anybody who really understands fully the consequences of these actions. They have taken step by step they could easily send us into situation and its happened in the past in the 70s, you can look at the big mistakes made by treasury and the fed. That has large scale is the more symbolic. A trillion dollars worth of marketing cap, limiting the pension fund in china, these are not major sources of reporter flows. It seems to be more a trade war w posturing than a permanent change what skienkind of message ar saying when saying were going to pick on chie thenese stocks delist them. People have talked about this in a certain fashion a certain mob element is listen, you dont play nice with us. Were not going to play nice with you people get that message. Its not just directed at china. Good stuff. Thank you. Rebecca and ron. Still ahead, peleton falling for a sec straight day as ipo woes continue whats going wrong with the recent public offerings. House flippers are known to be risk takers but thanks to a hot Housing Market those risks are increasing we have the details, coming up we trust usaa more than any other company out there. They give us excellent customer service, every time. Our 18 year old was in an accident. Usaa took care of her car rental, and getting her car towed. All i had to take care of was making sure that my daughter was ok. If i met another veteran, and they were with another insurance company, i would tell them, you need to join usaa because they have better rates, and better service. Were the gomez family. Were the rivera family. Were the kirby family, and we are usaa members for life. Get your Auto Insurance quote today. Welcome back eamon report ong the u. S. China relations. The Trump Administration is considering delisting chie naez companies from u. S. Stock exchanges. We still have trade tensions and impeachment worries to deal with as well. Lets bring in jeffrey to help us sort through this jeffrey, we have talked a lot about the details of what it would mean for Capital Markets if Something Like this moved forward. What do you think it means for the trade situation for the u. S. And china . It would be another tension in the relationship. We have a number of these already with hong kong and taiwan a number of other issues it would add to that list. I think it adds to the decoupling narrative on both sides of the pacific and just another obstacle to a long term deal between these two sides the timing is curious because we had gotten reports that talks were on track and movingforwar and so forth obviously they cant release this information it was reporters who found this had been in the works. Do you expect this to now be an important part of the bargaining process or not i think it could be become part of the talks. I think its difficult to know if first if this reporting was accurate and motivations of people that are putting this out there but i think certainly when the chinese vice premier is here in a few weeks it will be on his mieb mind as given the impacts of the chinese economy. It will be one of a long line of things they need to sdus when you question the motivations of the people who put this out there, presumably the people are within the administration is there some implications that you think that someone in the administration wants to sort of derail talks or put out a stumbling block . There are camps within the administration that are more and less interested in repairing or improving relations with china i think there are certainly people within the white house are are focused on making sure that the president doesnt see to what they see has his short term political interest with respect to farmers and Agricultural Prices and want to keep the focus more on the long term and what they see as the long term strategic conflict between the u. S. And china the white house is not too monolithic in that regard. To the you think they will cause the president to want to distract from it, make him more defensive in the talks the effect is realtively marginal it probably makes the president a little more cautious about escalating with the chinese. We have these tariff fiepgts coming it probably makes him interested in what we call the mini deal which is a short Term Agreement with the chinese buying more Agricultural Products from the u. S. The u. S. Perhaps providing some tariff delays as well as maybe some relief for huwei licenses i think it feeds into the desire for that deal that enforces existing trends. We saw trump on the road to that deal before the impeachment process started and this pushes it further what dwroo you think the impt is on democrats running for president in. Not a whole lot the story hurts biden. It puts the business dealings of his son and broader family really back into the presss spotlight. Thats a negative for biden. Beyond that i think for democrats, at least the ones running for president and some of them have dual roles in this story. The ones running for president want to keep the focus on issues Like Health Care and Climate Change where democrats have big polling advantages over President Trump. I think thats safer ground for them they will leave impeachment for the most part in congress. Thanks very much. Appreciate it. Facebook, apple and netflix lower. Thats next. Bitcoin falling more than 16 in september. Well deep into the crypt around kaj. Power lunch will be right back woman what gives me confidence about Investment Decisions . Rigorous fundamental research. With Portfolio Managers focused on the long term. Who look beyond the spreadsheets to understand companies, from breakroom to boardroom. Who know the only way to get a 360 view is to go around the world to get it. Can i rely on deep research to help make quality Investment Decisions . With capital group, i can. Talk to your advisor or consultant for investment risks and information. Should always be working harder. Oney thats why your cash automatically goes into a Money Market Fund when you open a new account. And fidelitys rate is higher than e trades, td ameritrades, even 9 times more than schwabs. Plus only fidelity has zero account fees and zero minimums for retail brokerage and retirement accounts. Just another reminder of the value youll only find at fidelity. Open an account today. Hour 36 in the stakeout. As soon as the homeowners arrive, well inform them that Liberty Mutual customizes home insurance, so theyll only pay for what they need. Your turn to keep watch, limu. Wake me up if you see anything. [ snoring ] [ loud squawking and siren blaring ] only pay for what you need. Liberty. Liberty. Liberty. Liberty. Welcome back the power lunch. Fang stocks falling in unison today but over the quarter one of these stocks is not like the other. While facebook, amazon and netflix have slumped google and alphabet have soared. Can the rest play catch up Craig Johnson and mark teper are your trading nation team size up alphabet for us and whether this out performance can kopt a kopt and how the rest of the group seems to be settling out you look at the big picture and the fang group you can see here that like the market, theyre not breaking out the all time highs this has been leadership in the past its not leadership now. If thats not breaking out, it will be a bit of a head wind for the market breaking it and looking at the charts inside of here, looking at the chart of google or alphabet, this is a stock thats been consolidating at a range of about 1300 a t tt the up r end the next 5 is higher. I suspect youll see google continue to work its way up and the fang stocks will probably continue to move in opposite directions the market is tentatively trying to suggest these regulatory pressures on alphabet might not be so decisive in terms of the business. How would you select among the fang names you got a lot going on here netflix has been a complete disaster after they u. S. Drivers last quarter now you have more and more competition entering the market. You have facebook and alphabet they have some regulatory overhang by far my favorite of the bunch is amazon. Its flat over the last year the thesis hasnt changed. I love amazon for three reasons. You have the cloud, advertising and obviously ecommerce from an ecommerce standpoint nobody can match them when it comes to price and convenience yes they are spending money right now on one day shipping but thats a short term drag and that will make them much stronger in the long run and then you have the high margin businesses the cloud and advertising which are still growing like crazy its trading in the mid 1700s right now. We think fair value is somewhere between 2,000 and 2400 so plenty of upside. All right still growing like crazy soundsinvestors. Well see how it plays from here thank you very much. For more trading nation, head to our website or follow us on twitter at trading nation. Back over to you ahead, peleton shares are stuck in low gear after an underwhelming debut. Is the ipo market on life support . Bitcoin below 9,000. Is more pain still ahead there a scandal that started over beer money the latest details on the social media fire storm involving a sports fan, multiple Public Companies and controversial tweets all this when power lunch returns. Do you have concerns about mild memory loss related to aging . Prevagen is the number one pharmacistrecommended memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. Prevagen. Healthier brain. Better life. On a scale of one to five . One to five . Its more like five million. Theres everything from happy to extremely happy. Theres also angry. Im really angry clive actually, really angry. Thank you. But what if your business could understand what your customers are feeling. And then do something about it. Turn problems into opportunities. Thanks drone. Customers into fanatics change the whole experience. Alright who wants to go again . I do i do i have a really good feeling about this. Welcome back here is your cnbc news update. On capitol hill House Democrats and republicans continuing to argue over the va lilidity agait the house impeachment hearing. We understand the whistleblower wants to testify and come before our committee. We look forward to that. Were trying to get clearances for the whistleblowers attorneys. We want to make sure that everything is done to protect this whistleblower. This is an attempted coup by the Intelligence Community this is nothing close to president obama said to help putin ill be more cooperative after the election chrysler has agreed to pay 40 million to settle a complaint by security regulators the sec said the Company Inflated sales by paying dealers to report fake numbers between 2012 and 2016. You are up to date thats the news update this hour back to you. Thanks very much marks right now are near session lows lets take a look at the major averages the dow is up 121 points its down 113. Thats a big swing the dow is the best performer. The s p is down 23 points. The nasdaq almost down 1. 4 . Thats 109point drop. The oil market is closing up for the day. You can look at that. Im not shehere for that. Youre not here to talk about that there it is trading down about 1 don is here to talk about these newly Public Companies like uber, smile direct club and peleton, all of which have struggled. Not enough to dissuade one name from going public. It is dissuading this name from going public endevor drawing its offer set today back to you today. What went wrong snp. Its probably fair to say the kill in the ipo market, you mentioned those names. It led them to shelve the offering it surprised many when it went through its plan as the markets awade that real ipo pricing. A pricing that already been ratcheted down in size and value earlier on in the day. Endevour found it difficult to escape a cloud of weward and surrounding its management ranks. C ceoneumannn stepping down. What happened with peleton after pricing at the high end expected range. It debuted lower and never took a look at positive territory both factors contributed to the decision to postpone that offer. A source familiar with the deal called it a brutal market. Thats between the factors we just mentioned as well as growing investor caution given the rotation out of Growth Stocks into more value oriented sectors and saying management at endeavor did not feel the need to sell below where the value of the company was. Another source emphasized the notion this was a postponement that when conditions improved youll see ceo emmanuel try to get this deal done this is a situation where if you talk about wework and the problems, peleton, which was a highly anticipated and in demand ipo floundserring the way it did, it really probably gave those folks a moment of pause in the afternoon right as they were about to price this. What is interesting the they have had trouble this year many there were no real solid comps for a lot of these companies. These are businesses that are unique in their own right. Yes they are endeavor is probably the least of those things. Its an established business with a revenue stream. The management side, youre talking about the ultimate challenge, the ufc franchise, the Miss Universe pageant. These are accomplished properties this is a company thats been growing revenues and narrowing losses unlike these big ipos out there. If they couldnt get a deal done and this is considered a many traditional business, what does that say about things . I would note another source said this was not situation where they needed to go public they didnt need to provide a liquidity event for people to get out of their shares. Well see what happens thanks. Take look at the september carnage for some of these ipos lyft and uber in the red the s p 500 from the green what went wrong for 2019 once promising ipo class . Lets bring in allen hes a corporate lawyer, corporate partner. On the phone we have jay ritter. Gentlemen, listen to what the dean evaluation had to say about yesterdays crop of 2019 ipos. These have been over estimating the value escaping up and underestimating the importance of the business model. Youre seeing this with all these companies. Uber, wework and peleton the Business Models are not formed but they are scaling up i think the market is getting more skeptical the markets scale up but there seems to be no path way thats laid out allen, im going to start off with you you advised some of the ipos of this year. What has changed in your view . How would your advice differ for a company considering an ipo in the later part of 2019 versus the early part of 2019 i think whats changed to some degree is that and i think were starting to pay the price for that in what were seeing. In the market is that fundamentally companies have held off over the past even four or five years. Companies have said, ceos have said i dont need to go public i can wait the markets will always be there for me i think what you ended up having is valuations get away from them they have plenty of cash available to them. You dont have the discipline of the Public Markets which is what they tried to avoid which is the quarterly call by the market as to how were doing what you had was Companies Whose valuation got away together with Institutional Investors which years ago didnt play in that market playing in that market already kind of full of the stock. You come to market at a high valuation because the private rounds are high and you get into a problem. I think where this might go, fundamentally and over maybe not in a short term but over the immedia immediate yum term is well see a return to more normalcy where companies are coming to market where theres still catalyst for growth ahead of them i think the focus is on the lack of profitability isnt really the point. I think its catalyst growth jay, this seems to be a side effect of a lot of the easy money thats around these days we have a lot of Venture Capital money needing to go some place they have gone into the private markets here with these companies private and they funded these companies well beyond the normal age of a company that goes public how do you think this resolves itself is there a reversion to the means . I agree with what you said. I think we have got a sanity check. I think thats where the valuation in private markets had gotten a little salty. They were based upon very optimistic assumptions and now were getting valuations more realisting assumptions go ahead. I was going to say one other point that feeds into that as the Companies Remain private longer, the quality and volume of information that those investors got as private companies when they made their next investment and moved up to higher rounds and higher valuations is not what they would get in the Public Market youve got a lot of money, pools of capital coming in based on information that will say imperfect relative to the public quickly, is the window closed for 2019 interview definitely not. I think companies are pe pairing. Theres plenty of them and i think they will give it a shot all right jay, allen, thank you. Appreciate it. Thank you lets get a check on the bond market. Rick tracking the action you know the treasury market is just a drift situation. The big headline regarding potential delisting of chinese stocks or restrictions on investments, if you look at the s p, which obviously had a very easy move to pick out around 11 30 eastern, you put it against a tenu year you dont se much you dont really see much. It didnt change the course of tens or dollars. Dollars still up if you go to u. N. Speech that the president gave, i remember a line very clearly. He said americas governed by americans. We reject globalism. That was in his u. N. Speech. Think about what he said today its what i call the three ds. Delisting, disengagement, deglobalization. He pretty much said that in his speech im not saying its going to happen or anybody read books written by Peter Navarro understand its an issue that investors should pay more attention to back to you. Thanks very much. A new trend in House Flipping could prove to be risky to the Housing Market and to lenders. Well tell you those details next as a principal i can tell you this. When one student gets left behind, we all get left behind. This is a problem that affects each and every one of us. Together with ibm, we created a whole new kind of School Called ptech. Within six years, students can graduate with a high school diploma, a college degree, and a pathway to a competitive job. You know whats going up today . My poster. Today, there are more than a hundred thousand ptech students around the world. Its a game changer. Ptech students around the world. Sometimes, they just drop in. Obvious. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. Pricey Housing Markets putting pressure on house flippers and turning to the banks for now. Diana joins us now hey there are very few foreclosures or dispressed properties to rehab and resell flippers are in higher end neighborhoods like this one. Finding older, pricier properties to flip and using more financing to do it. About 41 of flipped properties in the Second Quarter of this year were bought using mortgages or private lending thats a little less than a year ago. The dollar volume of those purchases was up 31 from 6. 4 billion to 8. 4 billion. Thats the highest level since the end of 2006. The investor on this house said Mortgage Rates are so low it makes sense to finance it and he said banks have loosened up a bit. Its almost hard to use a mortgage because you get leverage you can do many more deals if youre borrowing money the banks have become a little more easy in lending in this flip business. It used to be a lot tougher. The underwriting on those loans is much stricter than during the last housing boom fully documented risk seems low now with so much demand for housing but if rates should move up and home prices cool, i dont know what do you think . Im asking you. That doesnt sound so good well see. Thanks very much time now for the tasting menu here is some of the other stories were watching today after months of searching, wells fargo is naming charlie sharp his new ceo. Wells has been struggling to fill the position held by tim sloan. He resigned in march under extreme pressure from Elizabeth Warren and others. Were still waiting for reaction for this one he was also the ceo of visa he has the experience with the consumer side of the business which is very important for wells fargo. Spieder man is swinging back to marvel. Agreeing to let marvel produce one more movie this coming after reports of deal renegotiations fell apart this summer after the release of spider man far from home your favorite movie. There was a lot of interest among the fans around here but im surprised they could come to terms on one well see. The Canadian Green party is apologizing for doctoring teresa may. She was pictured using a disposable cup thats it. It was changed on the right to a line better with the part platform that includes banning single use plastics. She was seen to be holding a reusable cup with a reusable straw. The image on the website removes her hands all together thats what it takes you got to be real careful about what kind of i use two styrofoam plates you reuse them over and over. Its been a rough week for bitcoin. Its dropped more than 21 how much ler mhtowig it go thats next. Bitcoin having a rough week, at one point trading below a thousand after a wave of selling. Also, the Intercontinental Exchange is launching its own bitcoin future product is there more pain ahead with us now to dive deeper, guys, welcome. A couple things happened the futures launched over the weekend and then also the back launched both seem to be the start of the decline. So lou, whats your take on whats gone on buy on the rumors, sell on the news we knew this was coming for a long time. Ive always thought that bitcoin is not about constitutioninstit actually its the antithesis of resolutions. And these kind of revolutions wasnt for five years after amazon launched that walmart launched so we dont need institutions to come to this party for bitcoin to break out again thats certainly a different tune from a couple of years ago, when that was seen as a longerterm catalyst, that once institutions finally get in, theyll have a wave of money going into bitcoin and that will be the next leg higher weve had a lot of legs higher without any institutional involvement. Its coming, its like gravity theyre going to be here but they are not going to lead the party, theyre going to be followers. I think thats an issue with this particular launch people thought that the floodgates would open and this is what institutions were waiting for. There were reports that there were only 70 contracts when this came out so maybe longterm, and you guys as a vc have a very longterm view on this, i think any investor who thought, okay, institutions are here, looked at that and said, okay, its going take a little bit longer, and perception in crypto and bitcoin is just as important, if not more important than reality, and then you have the top losses so when it does go below a certain amount, people say, when it goes below 9,000, im out and that has this Ripple Effect that brian kelly and others have mentioned. There are real Technical Levels that people were trading against, 9,000 being one of them it does seem to have this Snowball Effect. And you get this herd mentality of, oh, no, were going below 1,000, now 9,000 and people have mentioned 7,000 for the next level so you kind of see that Snowball Effect others have said, we really dont know why it seems to be this herd mentality of everybody selling and other well, certainly, i think one of the things that exacerbates it is all the leverage you have in crypto. Bit max allowing people to get 100to1 leverage, means people are getting stopped out every few ticks. So that definitely compounds the effect of any downdraft. In terms of bitcoins price, lou, in your world, does it matter certainly not daytoday, right . If bitcoin is going to be 100,000 or a million in five or ten or twenty years, then all the up and downs were seeing today is just noise. Thats a big if, though exactly if you believe, if you see these things and im looking at every day and undoubtedly, to me, the most exciting thing is just the brilliant people who are leaving Goldman Sachs who come and do this theyre seeing a better world of doing capitalism but from a market standpoint, it seems like crypto has more of a tie to the growth trade. And thats a trade thats come off. Weve moved more into value stocks and that seems to coincide with bitcoins resting period and a week like this would challenge bitcoins place as a safe haven asset youve seen stocks go down this week, same with bitcoin. Its not trading i mean, its trading in tandem a lot of these things and the argument that its like gold, its digital gold and its trading independent of what the rest of the markets are doing, youve seen this riskoff attitude its definitely translating into bitcoin. Doesnt it annoy you that whenever bitcoin goes higher, theyre quick to say, its like digital gold theyre willing to pin everything and anything on it. And when it goes the other way, even though staple conditions exist, its like, what happened to that argument well, look, i think youve got to have a thesis as an investor you have a thesis that you believe in and get new information. I actually do believe the analogy that it is digital gold. I think its digital gold on the way up and digital gold on the way down obviously, people believe that more and less during different times, but i think over the long haul, thats going to be the play not different than the stock market all right, fair point lou kerner, kate rooney, thank you. For more on bitcoins declines, you can check out kaitds reporting on cnbc. Com. Speaking of bitcoin, those declines dragging 2019 oz pearlman lower, but Still Holding a commanding lead, up 18 . Behind them are nick lowry and the beardstown ladies lagging behind our bethenny frankel, jarvis green, and seymore alpha. Is this the only one even positive he should be, hes a mentalist. If he werent winning, i would really question his abilities. Dow is hitting fresh lows with the drop of about 175 points right now well continue to watch that there you see it, hanging on near pretty much about a twothirds, 1 decline nasdaq, the worst performer today. And what started off as one sports fans request for beer money on espn has turned into e te iretty high drama thlastn the carson king story, next. [leaf blower] you should be mad at leaf blowers. [beep] you should be mad your neighbor always wants to hang out. And you should be mad your smart fridge is unnecessarily complicated. But youre not mad, because you have e trade which isnt complicated. Their tools make trading quicker and simpler. So you can take on the markets with confidence. Dont get mad. Get e trade and start trading today. Dont get mad. At verizon, were building the most powerful 5g experience for america. Thats why the nfl chose verizon. Because they need the massive capacity of 5g with ultra wideband, so more screaming, streaming, posting fans. Can experience 5g all at once. This is happening in 13 stadiums all across the country. Now if verizon 5g can do this for the nfl. Imagine what it can do for you. Liberty mutual customizes your car insurance, hmm. Exactly. So you only pay for what you need. Nice. But, uh. Whats up with your. Partner . Not again. Limu thats your reflection. Only pay for what you need. Liberty, liberty, liberty, liberty iowa state fan carson kings request for beer money on National Television has resulted in millions of dollars of donations, recognition from the state, backlash over his old tweets, and now the firing of a journalist eric chemi joins us now to make sense of it all. Pretty good summary its a complicated story with a lot of twists. Lets start at the beginning 24yearold carson king became a viral sensation when he appeared in the background of espns College Game Day show with a sign that said his bush light needed replenishing. He included his venmo name donations came rolling in, so much so that he said he would donate it to a Childrens Hospital were now at 1. 9 million as of an hour ago. Then Anheuser Busch and venmo both stepped up saying they would donate as well bu busch said they would give him a years supply of free beer but then a reporter at the Des Moines Register found insensitive tweets king wrote eight years ago when he was 16 reportedly based off a Comedy Central show, thats when busch dropped its association with king, but kept its promise to make the donations the latest twist, that reporter had its own old insensitive tweets and now has been fired. But most importantly, donations to the hospital are still pouring in and iowas governor announced that tomorrow is carson king day across the state of iowa. And this has divided households who are arguing over whether he should be applauded for doing a really great gesture today no matter what he did when he was 16. I didnt even know that the reporter has now been fired. Its very complex story he tried to do one good thing people in glass houses shouldnt throw stones hes getting up to 1. 9 million. More people have given money because of it. Wow two points off of the session lows on the s p 500. Thanks for watching power lunch closing bell starts right now. Welcome to the closing bell, everyone. Im wilfred frost. Wells fargos stock is surging as they named a permanent cfo. Were down 150 points on the dow. Near session lows with 59 minutes left to trade. And im seema mody in for sara eisen the white house discussing a block or limits on all u. S. Investments in china that sent stocks sharply lower madridday. Tech, software, f. A. A. N. G. Related names all in the red. And new data on personal spending comes in weak joining us for the hou