Transcripts For CNBC Closing Bell 20240712

The only stocks that are doing well right now, some of the reopening trades and some of the big laggers for the year like cruises and airlines and some retailers still in the Green Energy Stocks also outperforming. Is this the start of a serious correction or a buy the dip opportunity were diving into that debate. 59 minutes left of trade 59 minutes of of this roller coaster session. Lots of guests as well the market pulls back. Well speak with three ceos that got insight into the state of the consumer, their spending and recovery in america. The ceo of campbells soup will join us on the back of had his companys Earnings Results that stock down 7 right now plus, well get two reeds on the beaten down travel sector with glenn fogel and mark hopelinger. Well speak with nick clegg about the new policies surrounding the election looking forward to that one. Lets get straight to our top story of the day the market selloff Mike Santelli has more on the major market pull back. A big pluflush of the hot moy also taking the whole market down take a two year look the reason noor you is get several times here where the index nosed above to a new all time high. As i pointed out, it often just has to kind of come back around and maybe retest and check to see if that break to an all thyme high is okay obviously this one was major that was a one off a major shock. St but if we did have to go back and see if that High Breakout is okay, you are talking about a couple percent down on the s p 500. Its nothing major when you look at it this way, you see it is very common to have it in this rolling fashion as opposed to just blasting off to stay once we get to record highs. Look at the nasdaq along with kind of a couple of trend indicators of the nasdaq this is a 21day average i pointed this out numerous times. We bounced off it a few times in the spring we had little pullbacks. We went way up to the top of that sort of path that its been traveling on for a while and now here we are about half way back down to that line it would be, again, another 3 , 4 in the nasdaq to pull back in the context. If its just going to be another one of these little tests, a little basic retracement of the move higher, thats all it would be obviously remains to be seen the big liabilities of the market for a long time have been sentiment and stretch technicals i dont think today took care of all of that it goes a long way towards beginning that process if nothing else and then just in terms of the sector mix, heres nasdaq 100 against the banks. People keep saying is it rotation its not a rotation. This has to come off the boil. What is going to happen to these . Are they going to take up the slack or also get come under pressure it flattened out in terms of banks. This is basically the greatest gap weve had in this whole run in the last year or so there was pretty close as well the banks are holding up well. Mostly because its the laggers doing well and one reason, you point out the cruise lines and the structurally challenged retailers f youre a long short fund, you know, youre selling the long ands buying back the shorts so to some degree, its where the is market crowding and where is the market neglecting exactly is there a why or triger . Jobless claims are moving in the right direction. Going lower, below that one million mark so is it positioning is it, you know, the frothiness . Is it the president tweeting out about dow 29,000 last night . I think its about the way the market got stretched in the buying in the last couple of weeks or so. Created a lot of the fevered option and basically created a more volatile take as we went to new highs. And a lot of that i think is there are President Trump tweeting about the market and taking, you know, that does all coincide with the start of pull yakz one tweet out of the blue, not sure that really has statistical relevance. Mike, thanks so much for that 55 minutes left in the session the nasdaq is down 5. 5 . Now shares of facebook also moving loyer today its going to tackle will misinformation on the platform including banning new political ads in the week leading up to the election and flagging premature victory posts. Thank you for joining us. Good to be on your show i wonder what you would say today to the critics that have looked that fresh announcement and it has not achieved a great deal that provided an ad is still uploaded at least seven days before the election then it will be seen for that final week at the campaign regardless well, i think the proof will be in the pudding, im sure. People will immediately pronounce on these announcements and say the go too far or not far enough i hope people will, you know, not just buy the action and the way we enforce the policies, theyre unprecedented. Theyre unprecedented because, you know, were living in unprecedented times. This election is like no other time like no other theyre set out today from limiting the number of messages and on mess efrpger to labelling posts from candidates. There are moving concepts. And i think much more problems and then you seek to delegitimatize the election. Its because if someone runs an ad at the last minute which, you know, very misleading and polarizing, there are opponents and we in the media dont have time to scrutinize and answer back and thats why we confine the guardrails as they are to the last week of the campaign. As he said, its easy to find some loopholes here. And the fact that youre not doing widespread on political ads, they raise questions about whether this is a pr stunt that is not a pr stunt. That is a very real constraint on what the ads can be run and what ads youll see on your news feed look, almost no one i dont think any major Silicon Valley fact checks what politicians say about each other because what politicians say about themselves and about each other is always full of exaggeratio exaggeration caricature and facts and so on. The idea that a private company sitting in Silicon Valley should be the sort of solar about iter of when web caricature and exaggeration becomes something which is simply not true is something that, you know, no one tried. Its almost impossible i suspect to do it what we are ensuring is a huge level of transparency. All the hands go into an ads library, far more transparent than political ads that are run on television or radio or in the printed press. You can see who paid for political ad, who is targeting and when theyre running it and different variance of the political ads. So we believe that that mixture of extreme transparency with this hard limit with new ads cannot be produced for a week up to election day hopefully will will mean the ads do what theyre supposed to which is allow politicians to communicate to voters, get the voters to vote in the first place. But avoid an ad being run at the very last minute in a way that sort of hijacks the final stages of the campaign. I think the bigger issue here, what i struggle with and i think a lot of people do question is that this isnt necessarily an ad problem. The misinformation tackling that youve been trying to do, it still seems widespread, whether its, you know, factual misinformation about the coronavirus and health and vaccines, whether its White Supremacy pages. You know, whether its militia pages with calls to arms these are still posts by users flagged many times too late. And that still get passed around to millions if not billions of people it just feels like your policies are very piecemeal and reactionary to the whole issue of misinformation. I dont think theyre quite piecemeal or small scale as you seem to imply. I mean, weve taken, you know, since we announced a couple weeks ago the measures were taking against q and r and other militia groups weve taen thousands of pages down we removed we label millions of items related to coronavirus and directing two billion people around the world to a lot of information on coronavirus virus. Something that were mimicking through a Voter Information Center that youll see on instagram and facebook pretty will every day at the top of your feed providing people with reliable information yes, i totally accept that sometimes we dont react fast enough on individual piece of content. Were Getting Better and better using Machine Learning and a. I. Systems to do so but i think to say that its piecemeal or not ambitious i think is unfair characterization of what facebook is doing right now. Nick, i want to pivot if i may to more broadly the impact that facebook has on polarization in society. On the 24th of september last year, you gave a speech to the atlantic festival in d. C and in it you said while newspapers and tv journalists analyze, ridicule, rebutt and amplify the statements made by politicians, that at facebook, our role is to make sure there is a level playing field, no the to be a political participant ourselves. I get that you personally no long rer a political participant. But arent facebooks algorithms that push more political republican content that like that footage and more democrat content to people that like democrat footage precisely that . Arent they showing that facebook does amplify views . The evidence is a lot more ambivalent than that in countries where there is an explosive growth in internet and social media, other organizations actually gone down or remained stable this doesnt appear to be a causal interview you look at the use of social media around the world between use of social media or polarization i accept which might sound counterintuitive but it makes some sense the vast majority of content you get on your social media feed is content that you are either interested in or crucially that you share with family and friends. Who you are friends with on social media is the biggest signal that is used to determine how pictures of your siblings daughters birthdays is the first thing you on your feed and generally what we find is that peoples friends have a fairly mixed view, for instance, fairly mixed political views in many ways more mixes and more diverse i had logically on the news feed than the same readers of the same often what can be quite partisan and newspapers. So i totally accept there needs to be more research and i announced and we announced at the beginning of this week that were working with independent researchers across the United States for the First Time Ever its its an Unprecedented Research project to really establish this time around in 2020 what the effect of social media is on voter behavior but the research and the evidence such as it is doesnt suggest that there is an automatic link between the use of social media and polarization maybe it doesnt suggest it automatically. You cited that some countries that are just growing into their internet use and might not show that but i mean clearly, america is very developed in that sense. Are you saying that you accept that if it were the case that your algorithms did in any way push partisan political content on to people who have shown a fondness of that political content in the past that that would be wrong you are accepting that i think were accepting we want to try to make sure that people, of course, see stuff that theyre interested in, that they engage in and find rewarding and enjoyable and we eliminate on a huge scale, i mean, we remove millions of fake accounts a day we remove or label or look at peoples feed any post that leads to our so Call Community standards whether theyre rules against everything from inciting violence or fraud. The we constantly try to get that balance right and where we get it wrong we constantly update. But with all due respect, i get shown endless, endless videos of arsenal players scoring goals because i always watch them youre saying where we acknowledge that we might be getting it wrong we address it i dont think youve addressed ever the fact that people get shown lots and lots of videos and content of stuff they have shown a tendency to watch. When we approach election that, is a lot of political content. You say you dont take a position and thats the right action surely you must acknowledge that is not what is going on at the moment on facebook firstly, i get a lot of videos on fullham goals. There arent many fullham goals, are there theyre mostly on the premier league i draw a distinction between making sure people see things that clearly in your case, you want to youre an arsenal fan i take it. Therefore, you engage in that content so you get more of it. The news feed is clearly seeking to try and make sure there is content whether its about your friends holiday or your family celebrations or whether its arsenal goals are prominent enough in the news feed that you get to see them. The algorithm in a sense is trying to deal with a very simple problem, quite complex to solve which is this. There is an infinite things can you do as you scroll down and look at as you scroll down the news feed. But there is only so much time, a few minutes at a time, sometimes that, you actually look on news feed. So what is, of course, ranked higher is tremendously important. The friends you have and what you engage is in a reasonable signal we dont believe its our role as a private company to take a political stance in the political debate thats happen on our platform just as they do in any other communication media. In the vacuum you have to operate in, its an impossible job to please everyone and we also accept that as you just said, the company does not want to take a specific political position and believe that you are not doing that. That said, from a pr perspective, given the role and title you have, are you the right person to head up the department that makes decisions when going into an election that you described at the top of this interview like no other, when you tweeted in july 2018 he, referring to donald trump, dislikes everything i believe in and believes in everyone i dislike. I was the leader of Major Political party. I can hardly bury my own political views that i held over 20 years in public life. I can distinguish my own political views from what facebook z im not going to inflict my political views, no individual does. We have objective views. I agree with you strongly that in the long run, many of these issues shouldnt actually be decided upon by Companies Like facebook or indeed by people like me in facebook at all in the end, issues about the relationship between social media and elections, for instance, this issue about how political ads should and shouldnt be run when they should and shouldnt be run, it would be more preferable if those were roles that were established by lawmakers, legislatures around the world, democratically accountable to their own voters i do believe in ten years, we will will see new rules of the road established by governments and thats only right and proper its only right and proper that what is a relatively young industry, facebooks only been around for 15 years or so, over time like almost any new technology, it takes bate of time for the rule makers if i can put it to catch up i believe thats exactly what is going to happen over the coming years. My final question also is a pr related question, nick. Do you feel that facebook has gone far enough . A lot of people dont, in it terms of recognizing some of the damaging effect its had on society with regard to spreading hate and misinformation and all these issues weve been talking about . Do you feel like the response has really been robust enough, the stop hate for Profit Movement where loads of corporations that we cover every day pull their political ad spending and the response public response is that you expect them to come right back no. I dont think thats fair. I think the response has been a lot more look, i can only point you to objective organizations. If you look at the recent report issued by the european commission, they were having compared the way we deal with hate speech. Hate speech deals with hate speech compared to other platforms, twitter, youtube and so on. We are in the lead in terms of identifying material certainly we now and we public every three months openly how were improving on going after hate speech before anyone reports it to us we have transformed our ability to do so of course there is always more to do. If i look at what facebook was doing in 2016, didnt have Fact Checkers we were not we didnt have the same Community Standards enforced in the way that they are now. We were not removing hate speech on a scale that we were. We were not removing millions of Bank Accounts on the scale that we are now we in 2016, we didnt take down one what we calil coordinated th russian Style Networks wet have taken down 100 over the last two years i do think people will say that its not enough . Of course. People always and its right that facebook should be put under pressure but is facebook today 2020 completely different than what it was in 2016 yes, i think any fair person would say that it is nick clegg, thank you for joining us we appreciate your time. Thank you taking our questions, nick clegg of facebook. Were looking at a major selloff in the final hour of trade will going into the final half hour, we have the dow down at session lows by 980 points right now. Almost 1,000 points decline. After the break, even big earnings beats couldnt save Campbell Soup from plunging today. Well talk to the ceo about the results. And Consumer Trends hes seeing. Youre watching closing bell here on cnbc this piece is talking to me. Yeah . So what do you see . I see an unbelievable opportunity. I see bestinclass platforms and education. I see awardwinning service, and a trade desk full of experts, available to answer your toughest questions. And i see it with zero commissions on online trades. I like what youre seeing. Its beautiful, isnt it . Yeah. Td ameritrade now offers zero commissions on online trades. If i could, baby id how can i, when you wont take it from me you can go your own way go your own way your wireless. Your rules. Only with xfinity mobile. The s p 500 is plunging right now along with the Broader Markets. Down more than 4 . We have not seen a move like this in a while. Were looking at tech leading the charge lower the nasdaq is down sharply the dow now down 1,000 points. A little over 1,000 points 30 minutes left into the Close Technology leading the selling it is getting broad based. A lot of the winners we had seen in the market, the stay at home stocks, software stocks, Technology Stocks like apple and tesla all getting crushed to day in the selloff shares of campbells soup are taking a dive along with the rest of the market this despite an earnings beat and strong sales growth in the Fourth Quarter campbells soup ceo joins us now for an exclusive interview mark, the stock is down 8 i get that Broader Market is selling off. The message you projected today to the street was pretty positive in terms of the underlying sales growth. Where is the disconnect . I think, you know, in all fairness to investors right now, its difficult moment to try to project. And as we came ourt today, we di provide near end guidance. The longer term guidance is more general in nature. That leaves investors with the short term to judge. And i think what really is going to be the tale of the tape of this moment for companies is not just the here and now but really how we come through the pandemic on the other side. And so our focus really has been around that. Taking advantage of a tough moment to make the most of it by investing in marketing and really trying to solidify relationship with the millions of new households that have come into our franchises. I think this is one of the windows where even in it times where we may be baa bit constrained oon supply, we want to make sure were doing everything to strengthen the relationship has you pair that with the work we had already done to simplify the portfolio. We reduced debt. Were now at a level that is 12 months ahead of our plan we got an organization that i couldnt be more proud of how they executed. Starting with our front line teams all the way and navigating this difficult moment. I think what were going to see is a situation where we come through this in a very advantage position i think companies that right now are only focused on incremental sales that arent focused on building strategy, i think, you know, those are the ones in a are going to be in bate ofa bita disadvantage im curious what youre seeing from the consumer now weve seen a bump in the unemployment benefits. Has there been an effect on grocery trends and buying of your products versus what we saw a few months snag. Yeah. I think certainly as we work through the cycles of the pandemic, you know, weve seen some, id say, some positive trends, for example, on things like cooking initially, you know, we saw a surge in that behavior out of necessity. And now six months later, consumers have built it as a real muscle. And so their confidence and commitment to that behavior is one reason why expect to see that continue on in the beginning it may have been a simple recipe now consumers are able to build in their own creativity. I think that is a trend well see continuing i do think there is some normalization in categories more so on our snacking side than perhaps what were seeing on our meals and beverage side. Come into a high entertaining season with initially football in the fall and then into the holidays i think well see how that plays out. Youll have the on going stay at home behavior kind of grazing and snacking on a more regular basis. But what we see as much of the entertaining and the party volume is onest things that were watching very closely hback to school depends on where you are in the country whether your kids are in School Learning in person or whether theyre doing it virtually signals very Different Levels of demand and different items and what were trying to do is really adjust our approach so that were able to meet the needs of the consumers in a more surgical way and more specific to where they may be or what cycle in this pandemic theyre in i know youve been trying to resupply the gold fish ahead of back to school a bit of a supply crunch there i guess what im getting at, and it relates to the Broader Market and the environment were in is the Financial Health of the consumer right now and how you particular fon ar environment whe plan for an environment where you dont know if well get another stimulus with the double digit unemployment rate. And at what point that hurts campbells yeah. Well, i think, you know, we said all along that of the macro trends that we expect to see shaping the future and again this goes well beyond just the pandemic moment were in has been this orientation around value. And i think for us as a company, you know, we feel and historically speaking were pretty well positioned to meet those needs. And if you pair that with some of the behaviors i was talking before about cooking and the ability to feed your family at a relatively lower price by cooking simple meals and utilizing products versus potentially eating out or as youre making tradeoffs, being able to do it with the soup at a fairly economical but also able to meet the needs of your family i do think what were seeing in market right now is not a major step down but an initial what i call defensive economic behavior people are doing it in smaller, more frequent Shopping Trips people are thinking more specifically about each of the trips. What i do really need now versus what we were seeing a couple months ago where we were really loading up pantries. I think what we have to make sure is that our presence, our frequency and promotion in marketing is at a higher rate to make sure that were meeting consumers when theyre going in to purchase instead of just setting up that one time big time purchase. That is an early indicator i do agree, i think value is quite important as we navigate through this period and probably well into the future sure. Mark, love to you have back on to talk more about Consumer Trends weve got a major selloff on our hands here thank you for joining us thank you for having me on. Worst drop thank you. Worst drop for stocks since june the high flying chip sector getting wrecked in todays session. We have a look at the movers what do you see . So, sarah, remember semis just rocketed off the march lows, surging 80 . It is deep in the red on track here for the worst day since june two analysts did tell me some of the selloff could be due to siena, a company that bults on tickal components. The cnn outlier or the start of a broader trim so what are the potential concerns that they need to watch for in the months ahead . One chip analyst told me is price valuation and election how does that impact u. S. China dynamics in the months ahead thank you for that. Still ahead, some of wall streets most loved tech names are seeing the biggest dein todays session. Well speak with an analyst that has a bold call on where the stocks should head next as we head to break. A check on bonds which is seeing big moves as well none as pronounced as the equity markets. The tenyear yield is down 0. 62 . Nasdaq comp down 5. 6 . Were back in a couple minutes i like liberty mutual. They get that no two people are alike and customize your Car Insurance so you only pay for what you need. What do you think . I dont see it. Only pay for what you need. Liberty. Liberty. Liberty. Liberty. A lot goes through your mind. With fidelity wealth management, your dedicated adviser can give you straightforward advice and tailored recommendations. Thats the clarity you get with fidelity wealth management. Lets get back to the Broader Market Liz Ann Saunders joins us. Down over 5 on the nasdaq its the recent outperformers and tech side selling off the most very clear broad selloff does that suggest this idea of when tech stocks do pull back and lead to a rotation is inaccurate and if things start selling off, everything gets dragged down it can be a little bit of both you can see a rotation in the market youre seeing that with a huge spread between, you know, 6. 5 drop in tech and energy which is the best performing sector it is still down 1 . That is a significant gap. I think can you have a combination of a pullback. By virtue of the power of the size of the big names, if they have big selloffs, theyre going to drag the Overall Index down given that top five market cap stocks make up their own it can be in combination with a cyclical area. The rub there is that i think the Economic Data will have to stay for the most part on a positive trajectory to justify the rotation into the more classical cyclicals. Thast thats the risk if this rotation continues. I think what makes it scary oern a d er on a day like this is the slides come so fast and abruptly the market cant go up every single day forever fwhe we were in a very long streak so perhaps we were due to get 4 , 5 moves can be a scary thing to look at your portfolio. So what do you tell your clients when they call you and say what is happening should i get out thats scary. But thats the nature of a move like this. When you have such narrowness in the market and such dominance by a small dwrup of names, its hard to pinpoint the precise time well see a reversion in whatever form that takes as you get more stretch, the likelihood that it happens more swiftly in a condensed period of time increases there is an appropriate risk with a small percentage of companies. When you add in not across the spectrum of cohorts in the market but certainly a tremendous amount of speculative frenzied activity in certain pockets of the market. In just a very small Options Market i think that also adds to the risk that if you get a catalyst or you the catalyst is just that the market starts to rotate or selloff, kit pick up speed quickly. This is not the short term, very short term trading. You are know, weve been telling investors to maybe be more mindful of more frequent rebalancing. Take advantage of moves. Rebalance based on portfolio moves and rebalancing the calendar driven. Im not sure that just todays weakness is sufficient enough to ease some of the excesses until the short term folks this is the dip you want to buy. I dont have a clear crystal ball than anybody else but certainly the excess is to just something more than just, you know, a single day compression in the high flyers as maybe necessary to right the ship thank you for joining us. Travel Stocks Holding up slightly better compared to the Broader Market today shares of Online Travel Company Booking Holdings on a terror since the march lows up 68 from that point for more on whether this rally in the stock is reflected in Consumer Travel demand, lets bring in the ceo thank you for joining us recent release, 91 fall in bookings for q2 i guess, you know, year over year perhaps that shouldnt be a surprise that could have been much worse. Are you seeing any green shoots since then from that we talked in the Earnings Call that we did see some continued improvement throughout the Second Quarter so that is good. Of course, now weve seen a little bit of a plateauing around the world as you see either a resurgence of the virus in different areas and countries are saying were not sure we want to have so many people traveling or not and people getting a little more concerned. When you see the rates go up in terms of infections, you see people stop wanting to travel as much so obviously what we need is a vaccine that will cure our problems we see numbers go down, glenn. Just in the last few weeks or so since peak you have seen any pickup in activity is it that correlated to what is happening or is it going to take something major like a vaccine to bring that confidence is it. I think you really will need a vaccine. That makes people feel safe to travel, to get us back to where we were in 2019. Its not going to happen overnight even after we get that vaccine. Its time to get that out and distribute it. And we say that recovery for us and for travel in general is not in quarters. Its in years. No matter what we do in terms of a vaccine, its going to take time i want to ask you about the various categories within travel its no the all equal, right . Airlines, are they getting hit worse than hotels . If so, what type of hotels were seeing some leisure demand come back and not business demand so where are the relative winners and losers here in this space . No doubt, the airlines took it hardest people are will to travel domestically and close to home can you go to a hotel that is not so far from you. You can still have a great vacation but a lot of people say, you know, im not comfortable getting on to an airplane. But, of course, it difference througho differs throughout the world in china, the domestic air business was down a little less than 30 down whereas the u. S. For that same month of july year over year, we were down almost 0 0e . So that shows how different it can be depending on how that country is doing in terms of the virus. Thank you for joining us, glenn. We appreciate the update up next, uninterrupted coverage of the final minutes of the wild trading day when we take you inside the market zone. S p 500 is down 3. 8 the nasdaq is down 5. 25 dow is down 900 points woday for stocks since june were marching into the close next ine. Now weve created a brand new way for you to sell your car. Whether its a year old or a few years old, we want to buy your car. So go to carvana and enter your license plate, answer a few questions, and our technowizardry calculates your cars value and gives you a real offer in seconds. When youre ready, well come to you, pay you on the spot, and pick up your car. Thats it. So ditch the old way of selling your car, and say hello to the new way at carvana. If i could, baby id how can i, when you wont take it from me you can go your own way go your own way your wireless. Your rules. Only with xfinity mobile. Accelerate your investments or pull back . Change the plan or stay the course . Thats why Northern Trust is here. With specialized expertise. A history of success through every economic climate. And proven strategies rooted in data and analytics. Giving you more control. Clarity. And confidence. For now and whatevers next Northern Trust wealth management. You should be mad they gave this guy a promotion. You should be mad at forced camaraderie. And you should be mad at tech that makes things worse. But youre not mad, because you have e trade, whos tech makes life easier by automatically adding technical patterns on charts and helping you understand what they mean. Dont get mad. Get e trades simplified technical analysis. Were now into the market zone. Were here to break down the crucial moments of the trading day. We have Hightower Stephanie link with us as well. We have to kick it off with the Broader Market and the big selloff. Were off the worst levels of the session. But were still on track for the worst day since june 11th. The dow down more than 1,000 points a few minutes ago its now down about 900, 879 points the selloff is triggered by technology and, mike, the nasdaq is now looking at its worst day since march. It could develop into something healthy and its also a measure of how persistent and steep the angle of the asent was. The nasdaq 100 made a new high 13 Straight Days were now down 5 on that nasdaq composite and were back to where we traded last tuesday so that tells you, yeah, sure this is a sharp move in a short period of time but it didnt take you back very far in terms of going back into the past so its not clear to me that a one day gut check necessarily flushes away a lot of the buildup of excess. Now its just kind of a flush of hot money out of the market initially anyway but the problem is when morality goes for a long period of time and its strong and people are amazed by it, its going up on no news, right were down on no news. It wasnt up on much news. What it means is the last people in had the incremental dollars are coming from people that dont want to miss that move so its only because it keeps going up that theyre in when it stops going up, they dont want to be in. So that is the initial phase of the process. It can be a healthy cleansing thing. It doesnt mean that one day does it. Is the vix up more or less than what we expect . What are the signals that were looking toot day that give us in i indication of whether this is just the start of something bigger to come its at a higher level than we expect. Its been very twitchy to the upside so 35 is relatively elevated what is interesting about it is its coming from the mid 20s even though the index, the s p 500 is at an all time high we talked about this incredibly kind of strong stampede of speculation in short term up side bets that did also feed into higher volatility readings out there. A lot of that is getting unwound today. And so that is kind of an accelerant to the move on the upside and down side so stephanie, how do you look at a move like today do you consider it a speed bump on the way up and all the reasons you like stocks yesterday . Are they still the same today . You are prepared for something perhaps longer, more damaging on some of the headwinds that weve discussed that are still throughout very much alive in the economy in the markets and in Corporate America well, i think today i think seeing a profit taking and seeing some selling today in tech and in growth is very he healthy. We were on a huge ride its been an amazing run i look at some of the Technology Stocks, apple, nvidia, amazon, up 100 to 200 since mart lows. Zoom, up 267 since the march lows the point is its very healthy to see a pullback. I think the other part what is happening no day though, sara, is we had had another day when we had better than expected Economic Data. Ive been talking about this forever. Weve seen a recovery off the lows and housing and autos, some parts of consumer. Definitely manufacturing today we got better productivity better unit labor costs. Better ism and even initial claims still terrible but were going in the right direction on a four week moving average. Then you nad in the ism report the prices index when you get more inflation that is a good recipe for cyclicals and value stocks i think thats part of what youre seeing today. And i think at the same time, again, tech is way over the skis i think you wait for a pull back someone asked are you buying any tech today no, not yet. Theyre not down enough yet. Im involved in the cyclicals and they are helping today offset the weakness in tech. Theyre not down enough yet lets see what dan ives from webbush thinks is this a buying opportunity grour names . I know youre a long term bull on apple 8 decliner a big buying opportunity . Yeah. I mean, i view it my view is faang and tech names go another 20, 25 higher over the next six to nine months and our call really since march its not going to be a straight line. Well have speed bumps along the way like today healthy pull backs as stephanie is talking about but to me in tech, if i look at the secular fundamental drivers, continue to be bullish i can tell you today, institutional investors, 21 ratio investors looking to buy the dips and what to work on rather than, you know, hitting the sort of exit on the sort of selloff. So to me, continues to be a sort of golden age to buy tech and were sort of, you know, to us the bullish thesis remains unchanged. Isnt it kind of a crowded trade, dan doesnt it bother you when every analyst like you is rushing to raise their price targets and everyone is saying bye and goes up every day to the crazy valuations or maybe not . We have certainly heard that before does any of that side of it bother you versus the fundamental case that you laid out . Yeah. In terms of the overcrowding trade, i mean, there is definitely obviously clear momentum, especially when you look more narrow in tech but to me, the stronger in terms of the secular growth drivers. 0 years plus covering tech, cloud, 5g, cybersecurity and, you know, what i think overall some of the mosttrends and lik at tesla the but i view this as opportunities. In terms of just a rerating in tech which i still view in the sixth and seventh inning, not the ninth inning of playing out. And then that is sort of our call as we go into year end. We continue to think faang and tech stocks going another 25 higher there are rallies in the stock prices yeah. I think our way to view that is its farrest through the trees the rewithin own it is not what happens in the next 24 hours in terms of encouraging investors to play the 5g super cycle. I think this is a once in a decade opportunity for apple these are just healthy speed bumps as we get there in terms of 150 and our bull case is 1735 you know, especially on retail side p institutional, there continues to be a massive demand i look into what is happening in the market, you know, especially in china, tesla continues to be one up. That was the low from today and from yesterday just broke below that. So potentially a key level according to a Technical Analyst at miller payback. But clearly 405 is a big one mish mike it shows there is momentum coming out of apple, tesla and zoom which we saw yesterday a little early and then saw it today as well. What is the Valuation Case right now for a name like tesla . Everyone said it doesnt matter until it does when it starts selling off. And then you realize a lot is momentum. There isnt i mean, there is not a near term Valuation Case that you point to a specific level its about big picture, how huge can the market get and what role will tesla have right now its becoming its an unwind of, you know, clear overshoot in the stock it doesnt mean that couldn have gone higher it takes even more Incremental Energy on the buy side to get a stock to continue to go up at that kind of an angle. Tesla had many of the sharp peaks on the chart over the years. And, yes, its come back from them in the short term, its crowd psychology the stock was up 50 from announcing the stock split thank you so much for joining us, by the way the is Justice Department is filing antitrust charges against google we have that story that could come in the coming weeks according to the new york times. This is an untirely expected there are previous reports that case was likely to be broad against google this summer so laying out the charges would be the first step. A lawsuit would then get under way with the doj providing evidence of googles dominance in advertising and search. A successful suit could result in a monetary penalty. Now the times also reporting that attorney general barr overruled career lawyers that pushed for more time to build a stronger case. Google shares as can you see, theyre trading close to session lows thanks so much for that google is down much of the session. Sticking around that 5 . Slightly lower going back to the Broader Market in terms of whether were due a rotation, whether the cyclicals can pick up some of the slack, i totally get your argument. The yield curve move down markedly over the last week. Does that mean within the cyclicals that in fact banks arent the place to be because even if the economy is picking up, the yield curve isnt. I think the bond market very heavily influenced with the fed. So i think thats going to keep the lid overall on rates so, yeah, do you want to be in financial in that environment . You definitely wantto see the curve. I think over time people they dont believe fwht recovery in the economy just yet i think over time you will start to see believers and as that happens, i think youll see a steeper ylde weeksk so i think that in terms of financials, i own them but in the cyclicals, inl mom overweight in industrials and discretionary. I think industrials there is huge operating leverage. These companies have done such a masterful job in controlling costs and restructuring and increasing productivity. We have the haves and have nots. Costco again last night with the comp number for august is just huge target and walmart and home depot and lowes, i own a fair a discretionary for special situations there is a few reopenings like a wynn resort. Were down 810 points on the dow. We were down 1,000 about 20 minutes ago. Its off the lows. Still pretty brutal selloff. Worst day for stocks since june. Nasdaq down almost 5 . Two minutes left what you are seeing in the internals . Weak but not as bad as you might think. The that points to a little bit of strength on the lagger stocks you see not quite 31 declining to advancing volume. The nasdaq is a good deal worse. Its more like 51 this is not as much of a washout below the surface. Much like the raily which is narrow and concentrated in some of the cult momentum glamour names. The pullback is most concentrated in that area. Take a look, too, at some of the sector moves we have as well high yield were seeing a little stress in credit treasuries are rallying. Its not bad on a week today basis. Its not like its broad Financial Stress here is both of them both to the s p 500 vix as well as the vxn, the nasdaq version of it. It shows that buying panic options in the measures as well. Mike, thanks so much for that we have 40 seconds left of the session. Were down 4. 9 on the nasdaq composite. The s p 500 is down 3. 5 it was down over 1,000 points briefly at the low all 11 sectors are in the red as we speak tech the worst as weve been saying down 5. 7 energy the best only down 0. 7 will seeing a slightly soft gold price as well. Its in the equity market more than anywhere else. Theyre down 600 points or nearly 5 . The s p 500 down 3. 5 and the dow down just shy of 3 . Now lower on the week could be set to break that five week win streak. Welcome back, everyone, to closing bell. Mike santoli, senior markets commentator, a major selloff today on wall street lets see where things ended up. The dow closing down 810 points. Down 2. 8 . The winners got sold off the hardest and dragged the do you lower. Were talking about apple, microsoft, crm, salesforce, home depot. They were the losers the s p 500 down 3. 5 . Worst day for stocks since back in early june. Keep in mind we were coming off a record high. But it was a sharp nasty pullback all 11 sectors ended lower led down by technology the nasdaq got hit the hardest its been the biggest winner it closed down 5 . 4. 96 . Almost 600 points there on the nasdaq a lot of those high flyers, all of the faang names, software names, chip stocks that had been leading this market got hammered today. The russell 2000 index down 3 it had been lagging all year long and actually faired better which was a theme we saw there were some winners today that held up better Like Airlines and cruises and Energy Stocks stocks that hadnt been doing well all year long were going to talk a lot about this market. Were going to get reaction to the tech wreck when were joined by roger mackname. See whether he thinks todays selloff is a buying opportunity for the red hot sector of 2020 so far first off, lets talk about what happened stephanie link is still here from hightower jim cramer, squawk on the street host is joining the closing bell right now jim, we dragged you back from vacation there is no such thing as a vacation when we have a market day like today what are your thoughts on what happened and what investors should be doing . Well, first, how you doing . Youre doing a great job this last hour t of course, i was saucing. When im away, we always have a crash. I would tell you this, i think that there is a lot of bad money in the market. The money that only knows that stocks go up, a lot of millionaires created im not kidding. Millionaires created i think were so far away. I mean i got to tell you wooshgser so far away that a level that the institutions like it that you really have to wonder sara and wilf whether there is any level where companies are selling at times earnings and sales in the meantime, what do they like theyre going into the open america trade. Are you kidding . Does america seem open to you . Is it time to take a cruise . So i dont know. Im very skeptical about todays action other than the fact that there are a lot of people who made a lot of money and they never sold and theyre being sold by margin the theyre being sold by brokerage houses all they know is the stocks go higher the legion of people who know that stocks go higher is the largest ive ever seen it. Jim, if youre saucing to day, that means you must have finished your nfl draft. So i look forward to seeing the results of that as well at some point. And in terms of your point there, Retail Investors have been buying recently, are you worried now that weve had a meaningful turn down there is an air pocket below that this is the start of what could be a much bigger pullback than we are used to after a decent market run . I am p. When you see stocks down 10 people are still trying to get rid of the stocks at the bell. When you see American Express doing very well, royal caribbean, you know, norwegian, these are the last vestage of the people that are new people they tlik go to the stocks i know stephanie will will say americas best is good i think americas best and travel are not the places to be right now. But what really does concern me is we had blowups. I know theyre not big companies. Major duty i know see yaen is not that big. I know zor sachlt not tha is no. These are all business to business and Enterprise Companies that are like a cisco. And you dont want those to start going down there is way too much in the economy that has been hot that is connected to those very Small Companies that no ones ever heard of burt theyre bad i think are analysts tomorrow that say september is a bad month. Were up huge. And when people take profit, the people that dont have any capital are in this market, the robin hood people, i dont know if they even know what margin is i mean to me, they think that margin is the margin of how the Football Team beats another Football Team. I think football is coming back. And that betting money is going to leave the stock market and going to go to the nfl apple, sales force, microsoft, the twhaunz got hit really hard today . No. I think they should stop take profit they should stop being greedy i was talking to a couple people theyre not students but people at it longer than i have ive been training for 42 years. All of them felt the same way. We stopped taking profits. Why . We couldnt take it. We felt bad. When you get that attitude with the reference that i just mentioned, the margin, what that means is there is a day two, day three. Were going to long day, you know, long weekend like i said, september is a terrible month i didnt like what was planned today. I listened to the Campbell Soup interview. It is really g but what he said is please sell my stock. Not very reassuring. What i say is that the beginning of this selloff was the tesla. Its with supplies theres about 6 billion worth of ipos coming there is a lot of direct ipo listings coming and there is a lot of Insider Selling for the if i ever time im uncomfortable. I never seen so much money made so easily in my life i mean there is you know, my friend had a picture yesterday in twitter and it had eight guys, new millionaires i swear. These were guys that would have lost money every weekend betting against the spread suddenly theyre millionaires. The millionaires are create sod quickly that theyre going to be taken away so quickly. I like them. Its not too late for them to take profits i think theyre terrific but they hate the word profit. Mike, we have not had, despite todays headline grabbing declines, a big pullback yet relative to the increase what is still even an understandable relatively small gut check . Yeah, were back to levels we were early last week which is kind of both the good and bad news just in terms of minimal type pullback for the nasdaq, i think, would be, you know, below 11,000 and then try to figure things out thats not down from here very much you get to a new high and then theyre like okay, lets make sure that is a good thing. So i dont know that were necessarily talking about magical levels right here. Its much p more about if the biggest liabilities of this market, weve been talking about are, you know, overaggressive sentiment and technical conditions that are way, way, way stretched, today went some distance towards taking that taking care of those but really not the full way. There were warning signs all over the place the we talked a lot about them on this show the fact that the bears basically exited the market. Some measures of Investor Sentiment were at levels we didnt see since, you know, the dotcom craze. All of of this is writing on the wall what is the prudent thing to do. The russell 1,000 growth up is 25 year to date. Of the xlk is up 0 year to date even with the pullback today the russell 1,000 value is down he is year today. I worry more about the high flyer tech stocks. Tlst is a lot they can do in terms of down side can you nt are a yell i value them we have talked endlessly about total Addressable Market i really believe in them internet of faangs and in cloud and retail ecommerce and wearables, all that is good. The valuations of the stocks themselves more than reflecting the total Addressable Markets. I do worry about tech. Cyclicals, theyre still down. Theyre down 20 , 30 . Financials are down 18 on the year energy which i really am not involved in, but its down 41 on the year. So i think its a stock pickers market you pick your spot you have a barbell i think there is a ways to go on tech i will will pick eventually because, again, the growth is there. I also want to own the economically sensitive stocks. Because i do believe the economy is recovering and will will recover into next year and that will bring profit to the cyclicals higher how many 800 point down days do we need to see before we get a stimulus deal out of washington i think that both sides think its good for them not to get a stimulus bill. And plus theyre also people that can argue including 20 Senate Republicans that things are better in the economy. The reason you want all the tech stocks is they do well when the economy is terrible. Theyre covid19 stocks. Theyre not going to rally if the economy is Getting Better. I think Speaker Pelosi and mitch meadow, the chief of staff hate each other people hate each other i hated a lot of people. You hated a lot of people. Thats the way it is down there. They dont really care if the economy is bad, the president will blame the democrats. Its an unholy alliance between no one i also think i listen to what stephanie said i think the economy is getting a little bit stronger. But its day to day. We have more outbursts we have more we dont get the vaccine. Arent we all tired of waiting for the vaccine . We dont get more testing and this and that, people say wait a second yshgs i second, why do i want to buy docusign is this the magic level . What the hell . These things are up so much. I cant even i have no idea where they would stop. At the same time, when i look at some of the cyclicals and the retailers, i can at least value them but i dont know if the numbers are going to be better next year or not without a vaccine so what im saying is washington is a mess. Science is a mess. I still believe in science ultimately but i think i understand that when i see lily doing okay, that means the economy is slowing when oil is going down, the economy is slowing when i sue other things going up, i see stupid money buying cruise ships theres a lot of stupid money. The stupid money made fortunes god love them. Fantastic. But they have to take something off the table so that theyre not going to be poor again they didnt do it in 2000. Im imploring the younger people to watching to understand you cant keep borrowing money and say youre a millionaire become a millionaire become a 500,000 millionaire of im asking you, please take something off the table so you dont say, you no he what . What was i thinking . Why didnt i take something off the table . Thats what happened in 2000 are they Better Companies now . Yes are the Balance Sheets better . Yes. Are they more expensive than then maybe arguably some yes, some know i just you traded with me for a long time. You know, stephanie. We cant have the people lose what they have zblfr 10 zblfr. 100 agree. You taught me that i sold some facebook i sold some amazon like 20, 30, 40, 50 points ago i made really good money at the same time, i just didnt feel comfortable when especially when everyone is on one side of the game and so that is why though, jim, even though we cant tell for certain that the economy is going to roar back, i cant tell you. That i can just tell you incrementally things are Getting Better in certain pockets of the economy. And those stocks are not pricing in anything. Theyre still down so much theyre not overowned. Theyre underowned frankly so thats why i say you want to own both waunt to find tech when its down another 10 or so theyre going to be bargains o tlut at some point but i dont want to chase right now. Not down here. Its just not down enough. And at the same time, i feel comfort a comfortable with americexpress. I still like that one. Were top of of a mind meld people are like are they out of their minds . We worked together for a long time down 10 a lot of tech is going to be interesting. I think that im worried about the banks, bank loans. A lot of things have been thrown at the banks i dont know what the upside is. There mao be a lot of four closures i thought the banks would rally on a deal. But i dont know where mnuchin is i know the sprez lets just say the president s i dont know the banks as well, jim, of course have suffered from yields pulling back over the course of the last week. They seem to find mainy catalyst it seems to evaporate. Weve seen all the huge numbers. All the online trading platforms if some of the new entrants to the market in the last three months listen to what jim cramer is telling them right now that they need to actually take a meaningful amount of profits, how much down side is there . How much of where we are at the moment in the markets has been pushed higher by those new entrants in the last two or three months i think, look, its where all the Incremental Energy is coming from in the cloud stocks in, the fast moving stuff. So i dont think that they really wield that much aggregate financial power. But they definitely are the source of the stuff that just wont take a rest on the way up. There emotional and it creates the movements at once. Can you trade against it you can model those things its a different type of energy in this market which has for many years now been very kind of al go algorithm. It definitely is certainly more of a source of potential down side i think in the very short term then upside. Jim mentioned docusign. It got crushed down 9 just returning earnings. We have the numbers for you. Sara, easily beating the streets expectations on the top and bottom line. 17 cents earnings per share. Eight cents expected revenue, 342 million, above the 319 million expected. Revenue growth of 45 . As weve been talking about, docusign is one of the work from home darlings. Got hit hard in the session today. Still up more than 200 year to date the stock is bouncing around it was up 7 it was even in the red for a little bit i just wonder if perhaps, you know, the socalled cult of zoom is the curse of zoom they reported on monday. 350 Revenue Growth year over year so docusigns Revenue Growth of 45 looks puny to. That thats one of the fears i know jim and you were just talking about. So well see as the shares bounce around. I shi in and out that in terms of Third Quarter and full Year Revenue Guidance also beating handedly so well listen on the to see if they can perhaps live up to the sky high expectations. Back to you. Thank you stops up 1. 25 after hours, jim. Is this a buy after what we saw today . Or is it just crazy expectations still built into the stocks . Lets put it this it way. I think it is the key to this market just like she said, if its repeat of zoom and unbelievable number and go down its going to be really difficult. Docusign is a merger of stay at home and mortgages and thats you know, thats twice blessed. And thats pretty good so lets watch that. I think that can actually tell you what can happen in with the stocks you see stocks you see siena which is a tremendous miss. We see something, you know, we saw a lot of stocks that i regard as being really good. And yet, you know, there are so many of these companies. Its like, you know, theyre all selling at such amazing such amazing levels that everyone i presume will raise the price target docusign tomorrow we have to see i dont want to presume that it can stay up. The stuff that went great today, colds, nordstrom, macys, those are open america stocks. Amazing. Well be watching it even closer it is all over the place its now up less than 1 jim, get back to your saucing for a little bit i want to say one more thing. If you become a millionaire and youre under 30, youre not a millionaire unless you take some profits. Love you i think youve done great. If you have become a millionaire, its no the so bad to be a 500,000aire. That is my final word before i go back to saucing okay. Jim cramer, thank you very much. A treat to get jim from vacation thank you, stephanie link to you as well. Thank you good to see you well continue the market conversation now try to help you navigate through these crazy markets and 800 point selloff on the dow worst day for stocks since june. Worst day for the nasdaq and tech stocks since back in march. You have been saying this whole thing has been fueled by liquidity and stimulus money particularly from the federal reserve. Nothing fund ally fundamentally change odden that front, did it no, but at some point, sara, thank you for having me, at some point you expect a pullback w he had five months of consecutive gains. We had had the best august in decades. Weve had had successive records. And weve had the stock market decouple from market after market from the vix, from the treasury market and high yield market so at some point you should have expected this. What happens next . Does the liquidity conditioning kick in quickly . Because if it doesnt kick in quickly, the derivative markets will take this will take the cash market down a lot more. Where would you put money to work in a sort of, whether its into something that might be a good hedge or just something that will give you a positive relatively safe return in the years ahead, mohammed. If you decide to take profits in light to have day and the equity market and that is the irony that is the exact irony. I know people who normally would have used treasuries as hedges who have gone into not just in vestment grade bond but short dated high yield bond feeling that the fed has protected them from any selloff the reality is there is no obvious safe negligent this market people should be doing treasuries, bate of gold and maybe a bit of high quality Investment Grade but it is there are two problems associated with this market one, technically very stretched. And the other one is its not easy to build with mitigation in a traditional portfolio. What about the economic backdrop it raised questions about the record setting rally about what permanent damage was done, how long it would take us to get back to normal, whether the losses from Small Businesses was really being reflected all of this stuff on the way up. We questioned it but on the way down, the question is has the market woken up to some of this so heres an irony. Despite todays selloff and despite the fact that this weeks number has been better than expected, the disconnect is huge if you look at the year to date numbers, you wouldnt be that worried. The s p 500 is still up 28 . Nasdaq is still up 28 s p 500 still up 7 . And all this in an environment in which most people now believe we are not getting a v shape recovery that leads to a fundamental issue. Were going to see investor dna in the next few days are they fundamentally based dnas like you heard jim. Dont touch this market. All of you that have been in this heard like behavior, be careful. You are completely liquidity based, relying on Central Banks and going to buy the dip that is the tug of twhar will will play out. My gut feeling is the liquidity conditioning is still strong and if its not, then this market comes on by a lot more how much more if the dna is more fundamentally driven than liquidity, how much more do we fall . We could have another 10 fall easily i want to stress if people start thinking fufunds do you look at absolute valuation or relative valuation . In relative terms, stocks seem cheap to Everything Else in absolute terms, stocks are expensive. If youre in liquidity based paradigm, youll be dominated by relative thinking. And thats where weve been. If youre fundamentally based, am i being paid enough am i being paid enough in high yield bonds . The answer is, no. Youre not paying it for an economy that faces moderation the way of improvement but a rising level of bankruptcies there is also another factor that i want to bring up which is, you know, were getting close to the election. And its looking more and more uncertain both the outcome of who could take the white house, what what congress is going to look like, whether were going to actually get results with all the questions about mail in voting and whether there is going to be disputes about them how it is reflected . What are you doing to prepare . I dont think it has been reflected. You know, ive been looking at two things one is the amount of uncertainty in the runup to the election and also what happens after the election will it be contested if we have a transition, how orderly will this transition be . There is a ton of uncertainty, sara markets shrugged that aside. Then there are lots of changes in the relative standing of the two candidates again, markets have simply said it doesnt matter because we are in a liquidity paradigm that is dominated by central bank conditioning if that changes, then we got we have to price in that uncertainty. Thats why i say to you if the mindset changes from technicals to fundamentals, then this market has further to go it remains to be seen whether it will change. It hasnt in the past. The past every buy on dip opportunity has been a profitable one mohammed, thank you so much for joining us thank you pleasure as always. Broadcom numbers are out josh lipton has them broadcom reporting, 5. 40 versus 5. 24 revenue better than expected 5. 82 billion. Street at 5. 76 billion. For the q4 guidance, broadcom expecting 6. 4 billion plus or minus about 150 million street at 6. 2 billion looking at the big segments here, Infrastructure Software at 1. 6 billion that comes in line that is mostly Enterprise Software a statement here as well they reflect a strong anticipated ram notary public wireless as well as the continuing surge in demand for networking from cloud and telecom customers. More than offsetting, he says, expected softness in enterprise. Conference call kicks off at 5 00 p. M. Eastern. Back to you. Josh, thank you with broadcom shares up 1 after hours, travel stocks actually held up better today than the Broader Market despite the selloff. Since reporting earnings last month, hyatt stock is up more than 20 joining us now is hyatt president and ceo mark hoplemazian. What is going on with demand for our travelers . It has been on a steady recovery since the lows in the Second Quarter of april was sort of occupancies. Theyve now recovered to mid 20s to maybe low 30s depending on where you are. And theyve been progressing and as we look across the globe, they are highest in the recovery is been under way the long nest china, for example in july and heading into august we saw occupancies that were in the 60s. So were seeing some recovery thats been relatively good. Its been driven by leisure, of course but thats what were seeing how much of your business is Business Travel . And how do you plan . When is that going to actually come back . Is it going to come back in full it come back for sure the composition may look different. For us about, 45 of our demand around the world comes from leisure travelers. And 55 from corporate travel, Business Travel as well as large groups, conventions and exhibitions and the like and if you look, most of the demand driver in this year so far in the Recovery Period is from leisure demand. I would say the one exception again is china we see as occupancy starts to verge into the 60s, we saw business demand coming back. And of that total occupancy, business demand represented 25 of that total, 25 to 30 . So business demand has come back i think as you look more broadly across the globe, it will take some time for business demand to return people have to be able to get back on planes, for example, and start flying across the world again. But we believe that while the composition will change, some use cases will modify based on hybrid meetings. You mention people getting back on planes s that bigger problem for you right now than your customers fearing going into a hotel or a hotel room are they actually quite relaxed about the cleanliness and safety of being in the hotel . Its just the means to get there are something that is still nervous about . I think for Business Travel for sure, air travel is a key component of that. When you look at occupancies across the entire industry and the United States, theyre running about 6 or 7 points lower in the top 25 markets than they are for the country and the reason for that is because Business Travel is at historically low levels. And because International Arrivals have collapsed. Theyre virtually at a smaller level. Theyre almost unmeasurable. So it will take some time. I think its familiarity its knowing someone or having someone that you do business with, having traveled and giving you a direct report or you actually having traveled yourself the usage rate and therefore trial rate still low only a third of americans have taken a trip that has involved in overnight stay since march. And only 38 of americans think that theyre going to travel between now and ethe end of the Year Airlines have done an extraordinary job of making that experience safe. And so, too, have has the Hotel Industry at large. And we have through very planful and deliberate processes and procedures that we put into place. Mark, i dont know if you saw im sure you saw Hilton Hotel Times Square set to close. That is big news today manhattan is getting hit 200 layoffs along with that announcement my question to you really is what the permanent damage is going to be to your industry how many fewer hotels were going to see in major urban spots. Your industry has been hit particularly hard are going to be permanent its difficult to say what proportion is permanent. If you look today as a snapshot about four in ten 40 of the workforce in hotels is not working right now. Its pretty significant and severe and to your question, i think there are certain markets that will take some time maybe a longer period to recover manhattan is living through i think a an adjustment period to supply demand that we experienced in in new york we dont have International Travelers coming to the u. S. Mark, thank you for joining us today much appreciated. My pleasure take care. Lets pivot back to the Broader Markets. Were taking a look at the recent surge in volumes. Its been extraordinary the were talking about how the Options Market has really been the epicenter of a lot of both the chase on the upside in the market and presumably precipitated some of todays selloff. I want to focus you on single will stock call options. Call options on individual equities which are used to play further upside in the stock. You see this is the average daily volume on a ten day basis. It surged since june of this year or early part of this year since march. It is now overtaken coming into this week the white line which is index and etf put options which are used to hedge. That is almost always the greater plur aflt t greater plurality. This shows the fed on itself where people just betting more and more and more and further upside the Market Makers having to accommodate that that spiralled higher. And i think you saw a little bit of this fever break today. And this is something that people have been pointing to as one of the signs of this welling up of speculative intensity in the markets. Its a very interesting dynamic in terms of where really a lot of this action was taking place lately would it suggest because that big surge came in single Stock Options that broader indices might be able to avoid some of the selling if it does proliferate. Not much. It is maze up of the individual stocks it does suggest though that the pricing of those options got out of whack people were, just to be glib about it, youre overpaying beyond face value for a hotry ticket you already have the not so great odds of winning and then overpaying for the privilege of not having that really probability bet. A lot is about, look, the losses will be taken and will get flushed away so i dont know that necessarily Overall Indexes have to take a lot of pain. But does it show you that maybe well have to rebuild a little bit of this by the way, its no the necessarily easy to kill. There was a lot of fast profits turned in this area. Maybe people will feel like this is an opportunity to restart it again. In a remains to be seen. Up next, well gel faang infester Roger Mcnamees opinion. Well do anything to quiet the social media giants ctirics of that is coming up on closing bell. Icated, a lot goes through your mind. With fidelity wealth management, your dedicated adviser can give you straightforward advice and tailored recommendations. Thats the clarity you get with fidelity wealth management. And tailored recommendations. I keep working my way back to you, babe with a burning love inside yeah im working my way back to you, babe and the happiness that died i let it get away servicenow. The smarter way to workflow. A lot goes through your mind. With fidelity wealth management, your dedicated adviser can give you straightforward advice and tailored recommendations. Thats the clarity you get with fidelity wealth management. Worst day for stocks today since june if youre looking at the nasdaq, worst okay since march with a 5 move lower every sector got caught up in the selling as far as the s p 500 ease decline of 3. 5 tech snolg technology is the biggest decliner Communication Services and industrials not far behind all lost more than 3 . Lets get to bob pisani for more on what happened today, bob, and what were watching for in terms of includclues as to what goes t this is about frothiness and air coming out of the market let me show you what i mean. You have apple was 120 two weeks ago. Split adjusted then it goes to 137 then back essentially to 120. In two weeks you have a complete inverted v much of the market, the tech market looks like that and nvidia was 505 five days ago. Five days ago it goes to 580 then back to 505. All the way up and down. Cloud stocks did the same thing. Zoom video, 300 five days ago it goes to 480 and now 380s it is still up more than 400 on the year even with that kind of move cybersecurity stocks did the same thing five days ago, it goes to 160 and closes right back down at essentially 143 complete up and down a lot of the market looks like that e commerce names, chewy, the pet supply company, 60 five days ago, goes to 70 and now back to 61. A lot of the market looks like that including the s p 500 by the way, we closed 3454 i believe. We were that seven days ago. So the question is, is this a one day event . A multiday event the pain trade is down because so many people are complaisant and long right now i think if you have this go on for more than a few days, youre definitely going to drag out more fed officials talking about them getting even more aggressive and youre going to hear terms of a definite fiscal deal done in congress. F. This goes on for more than a few days back to you. Definite and if, bob. So some conflict there gi et your poi i get your point the nasdaq closing down nearly 5 today lets bring in tech investors Roger Mcnamee from if Elevation Partners great to see you thank you so much for joining us i guess well get to the pullback in tep tech stocch stoa moment interested to speak to you about the new facebook policy announced to day we had nick clegg on earlier in the show what do you make of those new policies are you overall delighted to see that they are taking action or critical that its too little too late its definitely too little too late and the issue that were dealing with here is simple. Facebooks announcement is a recognition that they played an outsized role in undermining our democratic processes the problem with this is that the way zuckerberg framed the solution, its no the just too little too late, its really a solution designed to appease people who are not looking closely at what the problem is if we think about, you know, facebook basically looking for solution as opposed to solving the systemic problems that lead to this. And what worries me today is much less about political advertising on facebook than did the denial of covid19 which is undermining our Pandemic Response it is the organization of groups private lead, the merger of those into the real world forming militias which are occupying ports of portland and kenosha. St there are so many bad things going on facebook right now. That contribute to undermining democracy. S this little thing is focusing on a sideling. I guess theyre in a very difficult position base odden what the laws and regulations are which is not very much and which ever way this he go, theyre going to meet criticism in it both directions. So when you look at the state of play where we are coming into another election four years is past since the last one and all the problems that arows there who is more to blame for the fact that we havent sold this in entirety facebook or lawmakers and regulators for not changing the rules that gorve them . Demonstratebly facebook is responsible for the problem. If you think about how our government is currently structured with trump in the white house or republicans controlling the senate, democrats controlling the house, that was never a scenario that you would see historical change. In my mind, the issue for facebook is a simple one do they want to be for tens of thousands of deaths in the covid19 pandemic . Because our nations response to the pan dem sick unable to get off the ground uniquely among autopsy developed countries. Do they also want to be responsible for the fact that militias are organizing on their platform, theyre using the platform to literally there are three to five Million People according to nbc in the facebook groups and facebooks own data says 64 of the people who join extremist groups do so because facebook recommends that they do so so facebooks responsible for two to three Million People joining these groups it is now infected the militia and thats become an issue in the streets and people have died the notion that facebook needs a law to tell them to do the right thing is laughable it makes me sad that employees are not vulnerable and they dont see the right panel here what kind of a country do you want to live in . Do you want to live in a country where militia roam free terrorizing innocent people . Do you want to live in a country where we have 1,000 people dying of a pandemic that every other country in the world has wrestled into some level of control . I mean thats that strikes me as insane. Yeah. And at the same time, facebook has held up so well in the market, roger. Just to bring it back to the market i wonder if if these actions youre talking about which would be much more drastic than what facebook has already offered and the kind of response that youre looking for which many are which is not what theyve offered would be in direct conflict with the business and the fact that, you know, the stocks are doing well performance is good. They seem to benefit from the open speech that is their platform i think you framed the problem perfectly which is that shoir holde shareholders benefited immensely. It is the Business Model itself. Its the culture of the company. The very things that make the stock so valuable. This election is about whether corporations will always have the right to do whatever they want or whether there should be some constraints. Whether Technology Companies should be treated the way that the Chemical Industry was treated beginning in the 60s when we said its no longer okay to pour your waste products into fresh water and dump it into the atmosphere or the pharmaceutical industry saying but, roger . Im not sure thats what this i election is about at all i mean, the Tech Companies especially facebook were able to tlif thrive in the obamabiden years and trump years are just a continuation of that its not like anyone is talking about reigning them in well, actually, i think in congress there is a lot of pressure to reign them in. There was an antitrust hearing a few weeks ago. It was an extraordinarily productive thing the energy and Commerce Committee in the house is also looking very seriously at safety regulations and privacy regulation now grant you, on the senate side, there is nothing going on there. But there are senators that are very interested. There are obviously all kinds of things going on with states attorney general relative to antitrust and Consumer Trust protection and things going on at the federal level i would look at it that during the obama administration, people just generally didnt understand what the risks were of the platforms. And then the behavior wasnt the way it is today. So things have really changed. And when i say this election is about that, what im really saying is that President Trump has welcomed the use of these platforms to cause dissent and polarization in the country. I think obama in his time period would never have gone for that and bide woen not have gone for that either. And when biden, if he is elected, hell be faced with a situation where the people who got him elected are at the harmed parties from covid19 and from militia and those people will be entitled to expect him to take a more pro active role again, these are very Important Industries tech is super important to our economy. But there is no reason why it shouldnt operate in a way that doesnt cause harm the pharmaceutical industry doesnt cause harm generally neither does chemicals now theyre not perfect. But at least they have duty of care and they do make an effort to try to be good citizens roger, so much still to discuss as always on this topic. Were out of time. Thanks so much for joining us. Always a pleasure thank you very much. Roger mcnamee stocks tanking in todays session. The dow closing down more than 1,000 points well be back. Stock slices. For as little as 5, now anyone can own companies in the s p 500, even if their shares cost more. At 5 a slice, you could own Ten Companies for 50 instead of paying thousands. All Commission Free online. Schwab stock slices an easy way to start investing or to give the gift of stock ownership. Schwab. Own your tomorrow. Schwab. If i could, baby id how can i, when you wont take it from me you can go your own way go your own way your wireless. Your rules. Only with xfinity mobile. Health care back welcome back we have details on where tiktok negotiations stand the one source close to the situation tells me that while a deal announcement from buy dance is delayed that the offers from microsoft, walmart and oracle are still on the table and ar r and oracle are still on the table. Im also told while the new chinese regulations could change how the tiktok algorithm is handled and sold, that one valuable part of tiktok in the u. S. Is not at risk, thats the data from tiktoks 100 million users. It is not subject to that chinese regulatory approval. If tiktok u. S. Operations had to build a new algorithm, it could train that algorithm with that mass of local data the Chinese Government is expected to approve the deal and the new rules implemented friday could be seen as a signal to washington that china also wants a seat at the table for these talks here julia, thank you. A major market selloff on wall street the dow closing down more than 800 points, first day since june Signet Jewelers falling. Whether its over the phone, online, or in your office, were here to listen and provide solutions that help you run your business better. Because the decisions you make have far reaching implications. And a relationship with a Corporate Bank like pnc can provide just what you need. As one of the nations largest banks, pnc brings customized insights and a local approach. To make informed choices now and in the future. Signet jewelers under pressure, closed the day down 4 the Jewelry Company behind zals, kay, better than expected with so much of them closed during the quarter. Profits also came in better. Same store sales turned positive late in the quarter as stores reopened ecommerce is also helping cushion the blow of those closed stores 72 growth some questions, obviously visibility into the Holiday Season is an issue the ceo is telling me she is increasing ecommerce distribution throughput by five times to be ready for higher holiday ecommerce and some strength in the engagement business. Some insights from their customer data, 55 of preengagement customers decided to quarantine with their partners almost half said their relationship got stronger. Only 7 said it got worse. Zoom worthy jewelry is a thing earrings and pendant sales were up some interesting Consumer Insights into how people are at home still buying jewelry through virtual visits and ecommerce. Signet down 4 in todays trade. Up next, were counting down to tomorrows jobs report, which could be a major catalyst after todays big selloff. Tune in for a special program on tuesday on cnbc. Path forward, race and opportunity in when the w america get, a lot goes through your mind. With fidelity wealth management, your dedicated adviser can give you straightforward advice and tailored recommendations. Thats the clarity you get with fidelity wealth management. Its made for this guy a veteran who honorably served and its made for her shes serving now we made it for all branches and all ranks whether they served one tour or made a career of it. We also made usaa for military spouses and their kids usaa is easy to work with and can save you money on auto, home and renters insurance. Become a member today. Get an insurance quote at usaa. Com quote usaa. What youre made of were made for im a delivery Operations Manager in san diego, california. Weve had a ton of obstacles in finding ways to be more sustainable for a big company. We were one of the first stations to pilot a fleet of zero emissions electric vehicles. The amazon vans have a decal that says, shipment zero. Were striving to deliver a package with zero emissions in to the air. I feel really proud of the impact that has on the environment. But were always striving to be better. I love being outdoors, running in nature. We have two daughters. I want to do everything i can to protect the environment to make sure they see the same beauty ive seen in nature. My goal is to lead projects that affect the world. I know that to be great requires hard work. A lot goes through your mind. With fidelity wealth management, your dedicated adviser can give you straightforward advice and tailored recommendations. Thats the clarity you get with fidelity wealth management. Brutal session on wall street for the bulls as we look ahead to tomorrow, off that 800point close lower for the dow and 5 slide for the nasdaq. Its jobs day. What are the expectations . Is this a time where lousy Economic Data could move the market lower certainly first of all, theres nobody rooting for weaker Economic Data we already have maximum easy fed. Theres no real positive way to spin a weaker than expected number though there is so much churn going on month to month in the labor market that i dont think anybody had High Conviction in what the Consensus Forecast really is. I dont know that theres anybody pinned to a precise level, but we do want to see confirmation that things still kept getting incrementally better in august thats been a big question on the consumer side of things. I wonder if were going to have a catchdown, so to speak in internal equities, particularly in asia, given that this big selloff in the u. S. Didnt start overnight with the futures market that might set a negative tone to start off tomorrow. Presumably that would im not sure the u. S. In the morning is necessarily going to pick up the baton in that direction. Its a friday before a threeday weekend tomorrow usually you dont get one of these real substantial oneday drops off an alltime high usually the market rolls over and had some back and forth action theres some unusual intensity to the move up and this sort of initial air pocket we got today. It certainly was a negative air pocket today s p 500 closed down 3. 5 the nasdaq was down shy of 5 . Thanks so much for watching. Im melissa lee and this is fast money tonights trader lineup guy adami, karen finerman, dan nathan and steve grasso. A tech wreck rocking the markets with apple, amazon, alphabet and tesla combining to lose 500 billion in market cap today alone. Plus, what the vix can tell us about just how long the pain of todays market could last and if you got questions about what to do after the selloff, well get you some answers