The ceo of boyd gaming will discuss where he sees growth. Today we have henry tao, steve grasso. Should we be as concerned over whats taking place in china . I dont think the u. S. Market should be concerned at all. In china only 15 of household assets are in the Chinese Market. People are not spending according to what they make in the chinese equity market. I dont think there will be any substantial impact on the u. S. Earnings at all. Do you buy that rick . Not even a little. I dont disagree with his information. I do think there are many aspects to china unique to china. Many have no problem when commodities were racing and copper was racing saying this represented global demand. Maybe it was chinas demand. I think that this reversal may not be exactly correlating. Lets speak or let the market speak for themselves. The dollar index, bund and dax all hit the same levels in july. When i see the dow, its not everyones favorite gauge of value, but the lowest levels since february this year. Is there a major thread that binds them together. Depends if you are talking about the stock market or chinese economy. If you can talk about them separately or they become intertwined. Not like when china had the 30 runup earlier in the year. Our stock market ripped as a result of that. Why should we fall out of bed if the chinese stock market has a crash . They ran up 30 , we ran up 10 . Its demand issue. There is lack of demand and that is what the market fears right now. Just think about it this way. If china is a net exporter and there noise demand there when they have 11 growth everyone is, oh my god, we are off to the races. Its 7 . Everyone questions that. Is it 3 or 4 . We talk about this the same thing. We talk about the market as if its the economy. Its greece china, lack of demand we are seeing. I wonder if we were to bracket that whole period from the u. S. Financial crisis to this year as being kind of a chinadriven story for the economy here for emerging markets, for australia, whomever you want to throw into that box, for some of the Oil Companies and related Commodities Industries even in this country, what phase are we entering now . What they have in common is liquidity. You can argue even though there is less energy it brought good things like fracking technologies. A lot of ships moved higher. Where we are at all i can tell you is countries like china are adults when it comes to how we view their economy, but they are really very much like children in terms of the sophistication, different aspects of their economy they are trying to liberalize. They are trying to liberalize their markets for more of the world of trade, and a lot of that activity is crossing into some of their slow growth. You have central planners gone wild trying to fix all the widgets. I think you can look at an economy and stock market and find big correlation. The reason we have a problem with that because it started at home. There are many who still believe the level of the stock market moved way ahead due to Central Bank Issues then some of the underlying fundamentals. I think caterpillar reflects all of that. Stay right there, guys. Crude month oil to four month lows. Jackie deangelis covering threes moves. Afternoon. Good afternoon. We saw down side pressure again today as a result of the conversation you are just having concerns over what is happening in china right now. It was perceived demand from china that was helping crude oil stay supported. Now add that to the rest of the story and we have a breakdown. Another 75 cents shedding off crude oil. 47. 39 less than 4 off your yeartodate low which was made on march 17 43. 46. What is interesting in terms of momentum, you had a weaker dollar today. Gold bounced on that yet crude continued to go lower. The things traders are going to watch for, they are going to watch the fed to see how the fed feels about china. What fed action may do to the dollar. Theyll be looking at tuesday and wednesdays supply numbers and inventory numbers from the department of energy and api. Also well get rig counts again on friday. Last friday we had a bumpup, 21 rigs were put back online. The big question in the Energy Market is what is it going to take pricing pressurewise to get u. S. Producers to stop producing or take it down . Thanks so much. Shouldnt we be more concerned about this commodities melt we are seeing . The clear impact the signal it seems to be sending about what kind of demand you have over in china . Its be a old story. If you look at where copper prices were it peaked out in february 2011. Silver prices peaked soon after. Gold prices oil prices everything. Its a supply issue. Producers have been much more efficient producing commodities. I dont think its a major issue. In the u. S. Stock market has been supported by consumer discretionary, health care and tech stocks. China are transitioning to more of a tech commerce consumeroriented commerce. Its not surprising the growth commodities demand is slowing down. Can you give as sense where the opportunity might be . I like china mobile. China only started transitioning to 4g wireless nationwide system the end of 2013. China mobile are trading on forward pe ratio of about 13 while the cheapest wireless providers in the world are scheduled to sign up 240 million subscribers this year alone. This is my best idea right now. I wonder. You see what the chinese government, communist party is trying to do in propping up the market fixing the market. The market is going to go down. We dont want the market to go down so well buy stocks. Its not working. I go back to a couple of weeks ago. The impact of china is more political than anything else that we are making perhaps too much about the economic pass through. For every action has to be a reaction. It has to enter into their calculus when managing their books. A week or two ago, we started to believe maybe growth is out there and isnt as weak or anemic as we thought. Maybe the government will come to the aid of that. Now you see the market saying we dont believe it because the Chinese Markets dont believe it. Why should we . Thats why you see risk coming off. Talk to us about this market does it trade in china today . Is it going to depend what happens with the shanghai composite Going Forward . Im thinking of tevas huge deal. What is happening in biotech and nasdaq. Huge. If you look at the names henry alluded to before if you look at the names under pressure, its materials and industrials. You look at those names. No one expected any surprises out of that. Its when big hedge funds start to take money off the table with apple. Why do you think they are going to do that . We are still in a rangebound market. Bouncing off that 200 day moving average. If we break that level, guys take their money off the table where they have profits. You think they will throw in the towel on a name like apple . Some of them will look at apples decline and buy more. You can look at both sides. The guys involved the top ten holders of it probably arent going to do anything. The guys trading it want to take their profit first, ask questions later. At least we are not talking about greece. Good to see you all. Appreciate it. 50 minutes to go into the close. It rye another negative session. The dow is down 140, s p down 12. Nasdaq down 48. Pharmaceuticals on the move after teva buys allergans genetic drug division. Meg terrell with all the details. Also ahead, Fiat Chrysler buying back half a million vehicles from customers to settle legal issues related to 2 dozen recalls. Transportation secretary anthony foxx joins us live and will give us his take. Why should over two hundred years of citi history matter to you . Well, because it tells us something powerful about progress that whether times are good or bad, people and their ideas will continue to move the world forward. As long as they have someone to believe in them. Citi financed the transatlantic cable that connected continents. And the panama canal, that made our world a smaller place. We backed the Marshall Plan that helped europe regain its strength. And pioneered the atm, for cash, anytime. For over two centuries weve supported dreams like these, and the people and companies behind them. So why should that matter to you . Because, today, we are still helping progress makers turn their ideas into reality. And the next great idea could be yours. Welcome back. First five day losing streak for stocks in six months. The dow at its worse. Down 160 points. Not that far away from that at this hour. Watching biotechs. I shares nasdaq etf falling for a fifth consecutive session losing about 6 of its value over the past week. And this as teva is buying allergans generic drug unit and abandoning its pursuit of mylan. Meg terrell is here with the pharma drama. A lot of this m a activity has been whats driving biotech valuations up. Teva is buying allergans generic drug unit for 33. 75 billion in cash 6. 75 billion in stock giving allergan 10 stake in teva. Teva is dropping its mylan bid and reconsidering what its going to do with that 4 to 6 stake in mylan. If you look at the stocks of all the players today, you think teva and allergan trading up there. Mylan getting hammered down 16 . Perrigo up 6. 50 . Mylan will be under increased pressure to make the perrigo deal happen. There is another name in this. A fifth stock and that is abbott. Abbott is mylans largest shareholder after it bought part of mylans generalje ne sais quoigeneral generic drug business last year. Abbotts ceo came out in support of the perrigo deal and against the teva deal last month. Folks are annoyed that isnt happening on the abbott side. You made the point earlier allergan could go in your words, elephant hunting, looking for the big deal. One analyst was picking names like amgen, biogen as potential targets. And he talked to sam eisley act actavis could be shrinking itself to be bought. How much consolidation and concentration are we seeing in this industry . What effect will that have on prices people are paying for these drugs . One side people say consolidation we are seeing among insurers is driving this consolidation among Drug Companies to keep the power balance. Insurers are pushing back on high costs of drugs. They are getting together to push back on that. Folks say perrigo will be in play no matter what whether it goes to mylan or tries to sell itself to somebody else. People are starting to get worried about what that means for antitrust in terms of all the Drug Companies. Wonder if as sam eisley said he expects mylan to raise the bid for perrigo. Its coming under pressure. Perrigo is saying no go. We are not interested correct . Absolutely. Folks are telling me maybe if the perrigo deal doesnt happen perrigo will look for another buyer. The drama will continue. Thank you so much. Meg terrell. 40 minutes to go now before the bell. The dow is down 137 points the s p 500 is off today by 11. Coming up well discuss why chinas stock market could reflect weakness in the economy. What does that mean for your investments . Plus well speak to transportation secretary anthony foxx about the governments record fine against Fiat Chrysler. Working 24 7 on mobile trader, rated 1 trading app in the app store. It lets you trade stocks options, futures. Even advanced orders. And it offers more charts than a lot of the other competitors do in desktop. You work so late. I guess you dont see your family very much . I see them all the time. Did you finish your derivative pricing model, honey . For all the confidence you need. Td ameritrade. You got this. Hi my name is tom. Im raph. My name is anne. Im one of the real live attorneys you can talk to through legalzoom. Dont let unanswered legal questions hold you up, because were here were here and weve got your back. Legalzoom. Legal help is here. So youre a Small Business expert from at t . Yeah, give me a problem and ive got the solution. Well, we have 30 years of customer records. Our cloud can keep them safe and accessible anywhere. My drivers dont have time to fill out forms. Tablets. Keep them all digital. Were looking to double our deliveries. Our fleet apps will find the fastest route. Oh, and your boysenberyy apple scones smell about done. Ahh, youre good. I like to bake. With at t get up to 400 dollars in total savings on tools to manage your business. Markets under pressure. We are seeing a fiveday loss streak for the First Time Since mid january. Dow shedding 150 points on real weakness in china overnight. Twitter and facebook also falling ahead of their earnings reports out this week. Twitter reports after the bell tomorrow. There it is down 2. 5 today. Facebook posts after the close wednesday. Down about 3 . No comparison what the stock Market Performance has been. Facebook has been the winner. The question Going Forward, if you are trying to decide which stock to buy, where you think the most upside will be and twitters gotten hammered so much, whether you think its not going to take all that much to get the stock back moving. Expectations are so low. That is what bill mueller told us twitter is an investment of his. He thinks it could be that 19 facebook moment everybody missed. They have to show they have the user growth. Instagram numbers are constantly a reminder of the boat they may have missed. That is a definitely showme story. Facebook has shown the marketings its capable of delivering monetizing mobile and all these other things adding users. Instagram part of that. Spotlight is on Fiat Chrysler today. Federal regulators slapping the auto company with a record 505 million fine related to its handling of vehicle recalls. Joining us is our own phil lebeau with transportation secretary anthony foxx. Good to see you. Phil, take it away. Thank you very much. Anthony, let me begin with the most pertinent question. 105 million fine. Does that truly send a message to Fiat Chrysler or at the end of the day are we looking at a company or industry that three or four years down the road will be right back where we are today in terms of slow to handle recalls . Thank you for the question. First of all, this whole approach of this penalty, not only the fines but also the remedial efforts we would be undertaking with Fiat Chrysler are designed to do both those things. One, to deter Fiat Chrysler from engaging in similar patterns of slowwalking recall activity not being as responsive to consumers as to dealers as well as to ntsb. It is to get Fiat Chrysler in a position where they know what is expected and wont behave in this way again. Secretary foxx we talked with the ceo of Fiat Chrysler a couple of weeks ago. He sounded like a person who had learned his lesson. A much more contrite executive than weve seen in the past when it comes to dealing with nhtsa. When you were going through this process with him, did you have conversations with sergio . Has he and has his Company Changed their attitude . I talked to the ceo very early on in my tenure at the department. I really allowed nhtsa to spend the time and do the work to work up a workable solution to these 23 different recall issues that arose. Im pleasantly or im very pleased with the way this has worked out. I think it is the right type of penalty. Its also the right type of rehabilitation thats being used here by our team at knitsa. So 105 million and General Motors was fined 35 million for an issue that certainly got a lot more publ and press than this particular case. Is that saying that you believe that this particular case was three times as bad as General Motors . Each case is different. In this case we had a pattern of failing to properly execute a recall, problems with notifying dealers and consumers, as well as failures to inform nhtsa is required by the Motor Vehicle safety act. In those three categories each of those problems is at least 35 million worth of penalties involved when youve got 23 different incidents involved there. We feel it is commesurate with the violations and we feel will improve their ability to comply Going Forward. Do we know how many deaths were linked to the issue at Fiat Chrysler . We havent compiled those numbers as such. Weve been asked that question and are working to pull those numbers together now. Secretary foxx good to see you again. Talking about Fiat Chrysler reminds me of the Jeep Cherokee incident recently where we found hackers could disable a transmission of a vehicle while it was on the road. What are you doing as these reports come to light about some of the vulnerability in the next generation of vehicles to ensure drivers and roadways are safe . Two things. On the specific case of the jeep situation, we have obtained Fiat Chryslers agreement to do a recall on those vehicles. That is under way. Or to issue a defect warning. More broadly, this is a conversation that is going to have to involve not only nhtsa but the industry itself. We are working diligently to get the industry at the same table to focus on the Cyber Security issues. Theyll be more forth coming in the comes days and weeks on that. But secretary foxx, the question i here is technology is moving faster than you guys are moving in washington. There is not a lot of confidence you can move fast enough to ensure the safety of these vehicles. I think on the issue of just the typical use recall situation, i think the industry is seeing a very muscular nhtsa, a nhtsa that is not going to allow itself to be gamed by the system, and we are going to continue working to enforce, and i believe over time the industry is going to adjust and we are going to see a lot more proactive effort by the industry. These are issues which, as i say before, industry and government are going to have to Work Together on this. We had success in our other modes of transportation working with industry to develop solutions and to have the information sharing that allow all the industry to benefit from the knowledge all of us have. We will work to address this issue as we are doing today. Mr. Secret