Trading. Check it out, 40. 21. The last time you saw prices like this it was 2009. March of 2009. We were in the midst of the financial crisis. It was a lack of demand. This time around its not just a lack of demand for slowing economies like china but also massive amounts of supply. Well talk a lot more about whats happening to wti but right now barely holding on at 40 dh 40 dhr 40. 21. The shanghai composite closing down by more than 3 and in europe greece making a 3. 5 million payment to the ecb on a maturing government bond. Athens using money from the latest bailout. Back here in the states a few economic report of note, weekly jobless claims at 8 30 a. M. Eastern time and then at 10 00 existing home sales. We got a couple of other big stories in focus right now. Of course the fed is on our mine. Yesterdays release of the minutes from the last fomc meeting raising a number of questions about the timing of a possible rate hike. Its the question we talk about virtually every day and the question continues. Policy makers agreeing that the economy was nearing the point where rates should move higher but officials are warning that lagging inflation and weak Global Economy pose too big of a risk to commit. At least so far overnight we heard from two fed heads. Both speaking overseas. San francisco fed president jon williams argued that raising rates is an effective way to cool off a Housing Market that is too hot but he warns resulting drop in house prices could wreak more economic havoc than its worth. On the other side wrong williams, guys, the music. The other jon williams. Williams not opposed to raising u. S. Rates farly soon though. He has said he believes the fed should probably raise Interest Rates a couple of times before the end of the year. If thats true, you have to figure out when youre starting. Three meetings before the end of the year now. Meantime, minneapolis fed president is in seoul today and suggests the possibility of increasing the feds inflation about inflating the target. The dual to reduce Financial Stability risk and make it easier. He floated the idea but didnt go so far as advocating the change. What is that . Moving the goal post . So instead of raising rates well move the goal post. We still dont know whats going to happen. Well, the Market Reaction yesterday was amazing. The market didnt seem to have a clue how to read the fed minutes. The dow was down pretty sharply. Came back and went positive for a moment before reversing again and by the close you were off more than 150 again. Im still confused trying to figure out what the market wants or what it would respond to positively. Is that a sign of relief . Were finally here. The fed is admitting they think the economy is Strong Enough to hold on to this or do they say we want more of this very accommodative policy. You take it as a great sign or as a terrible, terrible sign that the world is much worse than we think. One thing i do think is that it does increase volatility until we see what happens in september. Play the volatility trade at least. In the meantime, beyond the fed and the economy well be hearing from a number of companies today. Maybe factor into some of the feds thinking on this. Madison square garden, sears before the bell. Then sales force and gap all reporting. Lets get back to the broader markets. As we showed you the futures are under pressure. This say continuation from yesterday with the dow down 143 points. The s p futures indicated to open down today. If things stand like they are now. Lets check out the early trade in europe. Right now youll see that there are red arrows there as well. Most of the declines are below 1 . The dax is down by three quarters of a percent. In italy the ftse mib is down by 1 and in greece its down by about 3 . Overnight in asia you saw that the nikkei was down by close to 1 . The hang seng was off by 1. 7 and the shanghai composite which has been incredibly volatile lately has been down by 3. 4 . Energy the big focus and well talk more about this in a moment but check out whats happening with wti. 40. 26. The last time that crude was below 40 was march 3rd of 2009. At that point it fell to 39. 44. You can also see that brent crude is down another 1. 5 to 46. 42. Check out the treasury markets. The ten year note yielding 2. 098 . Even as we talk about the feds raising rates that pressure on yields continues. Same story weve been watching. A lot of market pressures on the yields. Check out the currency markets. The euro looks a little stronger against the dollar today. 11158. Dollar yen at 12355 and up against the pound and finally gold price which is have gotten a bid in the last several sessions are up another 10 to 1,138. 40 an ounce. Its been the opposite but gold getting a little bit of a bid in the last week. Crude oil prices, that pressure putting 85 of the Energy Sector in bear market territory. Chesapeake and Console Energy now more than 70 off of their 52 week highs. Joining us right now on the slide in oil prices, just talking more about the fall out is matt smith. Data director of Commodity Research an matt, this has been one that very few people have called correctly and i just wonder what you do at this point. Do you just sit and wait . The term of the oil price becky or . Yes, in term of the oil price. Were looking at potentially a three handle. Its something you could hit today. Sure. We havent hit the lows, tested the lows on brent alt that 45 level yet. It seems thats the next likelyhood in terms of wti because of downward pressure broent as well well probably drop to that 40 level. Its a one way street at the moment which is a concern in itself. When everybody is pointing in the same direction we could see a swift rebound. A lot of people are short in this market. Actually in terms of the financial positioning, hedge funds are getting close to their shortest, their longest positions for their shorts there since the lows end earlier this year. Were reaching an extrek but at this point were going to continue going lower. Are you suggesting that 40 doesnt reflect the market fundamentals at this point . Well, what we saw earlier in the year is the market get ahead of itself in terms of investment flows coming in. Once we got to those low levels we saw a swift rebound even though the fundamentals didnt necessarily justify that. And i feel were seeing a similar thing this time around as well where were going and everyone knows that crude demand is going to drop off. So theyre trying to get ahead of that and everyone is selling this thing down. Where is a fair market price. We talked so some experts yesterday about this that said this time around they thought it was going to be a vshaped rebound. He now thinks its a ushaped rebound. But what if its l shaped and you see prices bouncing along this bottom level. It could be a w rebound. A ww rebound. Were in the situation where were not seeing the market rebalance yet so until that happens were not going to see sort of any sort of price move higher and so in the u. S. Here we are starting to see production dropping off. Were seeing sort of 9. 4 Million Barrels a day but elsewhere in the world were seeing it as well. Its fair to say theyre behind us for the foreseeable future. Very much so. If you look at the forward curve its not a fair representation of the market. But below 50 for the end of next year. Youve seen mexico hedging in the next day. They hedged their production at 49. Theyre savvy so that could be a lid on prices over the next year potentially. Thank you for joining us this morning. Crude is closing in on a three handle. The dow setting up for another triple digit slide. The fed seeming glly giving the market mixed signals about what is going on. Nice to have both of you here. Allison, you first. I made the comment that the market didnt seem to have a clue what the fed was saying in the minutes yesterday. What was the message . I feel the same way. I thought going into it its a coin toss and coming out of it feel the same way. If anything they might be more dovish. That whats going on with oil prices and in china they might pause. My concern there is, it keeps the markets incredibly volatile. Just wondering if theyre going to do it. Do you have any idea . The fact that the mashlth has been as volatile today it looks like it will open sharply lower. At the same time watching this drop in the price of crude. A agree with allison. It wasnt clear. Some came out and said its dovish. Some said its hawkish. The reality is is that the Federal Reserve is considering raising Interest Rates at a time when the world is a wash in deflati deflationary pressures. We continue to be in a very weak growth environment. We con to have Oil Prices Decline and currencies fall against the u. S. Dollar. Thats denatiflatiodeflationary. You have excess supply and Spare Capacity around the world the risks is large. The fed should not move in september . I feel that a very small move of the margin might be stabilizing. Weve been in an easing environment for years. Thats what you think should happen . Should happen. Goldman sachs saying its going to be in december. Which bank is going to win that game . I dont believe its going to happen in september and i dont believe it should happen in september. People talk about what it means. Psychologically it means a lot. You look at the journal today and they have these commodity exporting countries getting hit as a result of the Energy Market and not to mention, you know, the first signal or move that rates are going to go up. The dollar goes up more. It continues to hurt those types of countries. Countries like canada which are already looking like a recession. China is weak. If youre looking at 7 years of zero Interest Rate environment when do you ever get off of this. If you dont think that now is the time in september i dont think in december the situation would be different. Im not sure either. Theyre going to try to raise Interest Rates at some point. I dont think its going to be september because of deflationary forces. Theyre going to try to raise rates this year in order to get off the 0 bound and signal to the world that the sun still comes up. But were in unchartered territory. Usually theres Inflationary Pressure and excess demand. We have not been in a period in a long time where were considering raising Interest Rates in a world of excess supply and Spare Capacity and thats what the markets are representing. This is going to be the longest cycle on record and the longest credit cycle and by definition the longest business and market cycle and the only way that plays out is if you dont have a disruptive policy mistake. We tried with the fiscal cliff. We have been able to overcome it. 25 basis points is not as big but it is deflationary. Theres all this bad news and were worried about the fed, china, et cetera and yet the s p is only 2. 5 or 3 at most from the all time high. Corporate profits are still look strong. Employment is picking up. Theres wage growth. Consumer spend as good picking up. So in the u. S. Economy except for the energy industry, but thats already hard hit, things are trending more positively. So some volatility outside of the United States but in the u. S. Things are trading normal. Thats when youre in a normal environment and Interest Rates are normal. Not at zero. We have been flat the last couple of months. The highs were awhile ago and you could argue that the flatness unto itself is sort of its own strange form of a correction. Right. But underlying the major averages there is a bear market in dozens and dozens of stocks that have gotten and countries. So your point is well taken. Its just when you step back and put it into perspective and say oh my goodness it feels terrible. Were like 2 off the all time high on the s p. Whatever thats worth. Allison, good to see you. Brian as well. Thanks, guys, when we come back much more on the Global Market sell off this morning. Well talk about that. Plus were all familiar with google street view but now the tech giant is doing something different. Its teaming up with researchers to bring us stunning views from under the sea. We have the pictures next. But first heres a look back at this date in history. The mercedesbenz summer event is here. Now get the unmistakable thrill and the incredible rush of the mercedesbenz youve always wanted. But you better get here fast. Yay, daddys here here you go, honey. Thank you. Because a good thing like this phew wont last forever. See your authorized dealer for an incredible offer on the exhilarating c300 sport sedan. But hurry, offers end august 31st. Share your summer moments in your mercedesbenz with us. Can a a subconscious. Mind . A knack for predicting the future. Reflexes faster than the speed of thought. Can a business have a spirit . Can a business have a soul . Can a business be. Alive . The futures have been under pressure again. This comes after a rough ride for the markets yesterday when the dow was down 163 points at the end of the day and that came after the session. The dow futures are down by another 150 points. The implied open is down by 150 points. S p futures off by about 17 points and the nasdaq looks like it would open by another 36 points lower. Other headlines for you this morning. I like this one. All work and no play. Could it make you very sick . Thats according to a new british study that says working long hours increases the risk of stroke and Heart Disease. Researchers tracking more than half a million adults over a 9 year period. People that worked 55 hours or more per week were a third more likely to suffer a stroke. This is not good news for me. And 13 more likely to developing Heart Disease than working more standard hours. 40 hours . 40 hour work shifts. But if you love your work maybe its okay. Yeah they dont take into account the loving the work part. If thats the case well all be good i hope. In other health news a new Study Suggests a healthy mood can spread through social networks but depression does not. Using a model similar to those that tracks Infectious Diseases they look at how the move of adolescents influences each other. While depression does not spread among peers having friends with a healthy mind set helped teens prevent or recover from depression. Having a Stronger Social Network could be an effective way to treat symptoms of depression. I always think social networks and online and also mean and terrible out there. Theres also been studies that suggest that they make people feel worse because everyones life looks so perfect when youre watching friends post pictures of great vacations and how happy they are theres a desire to try to keep up with the joness and were trying to make our lives look better than they are. Social media envy or something. As im looking at twitter right now. Anybody having a good vacation. I havent read any nasty comments yet. Thats a win 20 minutes in. Maybe everybody is still sleeping. In sports news thousands gathering on the streets of williamsport, pennsylvania to welcome the teams for the 69th Little League world series. 16 teams will compete for the title. Opening ceremonies scheduled for this afternoon and the first game will with uganda against the dominican republic. It will be played out in less than two weeks with the World Championship game on august 30th. We actually invite other nations. Its a great event. Verses the world series that we play in baseball where we dont. Its a great event unless you bring kids that are ineligible to play as happened again last year, unfortunately to a u. S. Team out in chicago. So it is a great event though. Check this out. An incredible journey under the sea to capture the beauty in serious danger of die agowying. It could be the closest we come to seeing these sites as they face a threat like never before. Hidden below the surface of the worlds ocean, spectacular gardens of coral and now documenting each stunning inch from australia to here in hawaii and beyond. Divers with a one of a kind underwater camera snapping a 360 degree picture every three seconds. The team partnered with google. So far, stitching together more than 750,000 photos creating a google street view of the worlds coral reefs. We joined the team off the eastern coast where corals where may look like rocks are actually living animals, facing what scientists fear could be extinction from what is called coral blaeeaching. This area here looks like it has snow on it. Yes, thats the bleach. And as you can see this is the healthy coral. Bleached corals turn white when they die. Now because of electric nino an warming conditions, waters that should be in the high 70s are 84 degrees and could reach 90 degrees killing more of the corals. Youre talk an event similar to the rain forest of the world turning white over a very short period of time. Everyone will be jumping upnd taking notice wondering what is happening. But this is happening underwater on a massive scale. This new google view of the reef will be used to compare the corals health in five years. Today its online. A virtual dive of what has been out of sight, out of min until now. Key sanders nbc news. The t sries including the Global Market sell off going on oil price right n just holding on barely to 40. 40. 30 for crude right now. Rrel crude is of course a huge story forhe alineindustry. Well talk about fairs and good news for csume next. I may be wrong about the airles. Rst w head to a break look at yestdays p 0 wiers d lors. You are loing at o rplane fuel gauges n u spheiffee . No u nseth . Gh letaka lo the one on the right just used 1 less fuel than the one on the left. Now, to an airline, a 1 difference could save enough fuel to power hundreds of flights around the world. Hey, look at that. Pyramids. So you see, two things that are exactly the same have never been more different. Ge software. Get connected. Get insights. Get optimized. Britta olsen is my patient. I spend long hours with her checking her heart rate, administering her medication, and just making her comfortable. One night britta told