Youtube segment. The coronavirus remains front and center the u. S. Reporting more than 90,000 cases in a single day for the first time ever. 59 minutes to go in this session, the week, and the month. We are down 3 on the nasdaq today. Ahead on todays show we will speak well break down all of these moves and speak with dan niles and see if he is buying any of the tech nims names on the dip. Lets get first to the market. Mike santoli is tracking the action for us. What stands out . Just in the last hour or so, the s p 500 did go back down and test this level everybody has been watching. We have been pointing it out all week basically the september lows, 3,230 and change we did hit it on the nose. It was a little bit of a tag and then bounced off that. Thats what a test looks like. You dont pass every test. Keep that in mine. It is also the june highs. Also the break even level for the year so there are understandable reasons why people are clustered in this area and decide whether thats a lint of a make or break. We are also watching for signs if this is a flush of crowded positions and a rise of fear you see when corrections are running their course i think it is too early to say decisively that is the case. Look at the asset classes. S p down 3. 5 month to date treasuries down in price by 3 the yields are at multimonth highs right now. That you could draw your narrative as you like there, say it is because the Economic Data has been good, we are expecting a fiscal push after the election who knows what it is, but it is not going according to plan. Gold perked up here a little bit but also underperforming what you might expect it is all one asset class directionally right now. We can flip this over and look within the stock market where most of the damage has come. Mega cap growth, again, month to date, thats weighing on the overall market cap weighted indexes. The equal weighted russel 1,000. All large cap stocks, call weighted i dont know if you feel comfortable about that and think it is a rethink correction in mega cap Growth Stocks like the fangs. Or thinking about what is going to take it higher back towards the highs. Thats the debate. Mike, can we go back to the first chart. If we were to fail the next test on the key levels in the s p, would we expect a bigger fall after that doesnt look to be key support levels below it. There is not much below it. What comes in here a little bit is 3,100 it is not the 00 day average thats the next some there how many of these textbook obvious stare step moves would you have sometimes it will break through the widely watched level, spring back above it. That was the head shake. 3,100 levels are where most people are watching the next move it would generally come the we got there with questions of whether the bull market itself was compromised. We will have to see if that comes into play. Thank you mike. A lot of that rides on technolo Technology Apple one of the biggest left siders today the worst performing stock on dow right now plunging more than 6 on the back of earning of it is responsible for 3,700 points of the dows decline right now. Let bring in a couple of annis. You both have different ratings on the stock chris, you like apple. You rate it outperform are you a buyer despite this selloff and the uncertainty today . We are. We have been involved in apple for a little more than a year right now ahead of the a 2k3w wa ahead of the 5g wave certainly thats here right now. I think the concern on the quarter was the fact they declined to give guidance for the december quarter there was good reason for that half of the product line, two phones are not available for sale yet and there is covid uncertainty. Certainly for the phones that are for sale they seem like they are selling fairly well. Delivery times are up. And the other factor is the carriers are subsidizing these phones for the first time in a long while, which is something we didnt expect while over the last year or so there is some hesitation, we can we were playing this for 5g. 5g is here there are still factors that we think drive upside that keep us in the stock. Jeff, you have an underperform rating on apple, but a 115 price together, which is higher than we are right now. Are you not buying the 5g hype and the next super cycle just to clarify, we have an 80, just a little bit below. Chris and i have been on the same sides of various stocks, we differ on this one a little. I think the iphone 11 cycle was a decent one it was healthy the signs i am seeing indicate that the iphone 12 is not going to be that much bigger than where we ended up with the iphone 11. I am also a little bit skeptical of the strength of the operator promotions one of the things that verizon said is they dont expect it to alter their financials versus last year, which means they are probably not going to be spending ultimately much more than they did in the 11 cycle. Jeffrey, if in six the 12 months time the world is back to normal, will apple have a higher or lower multiple on top of its earnings thanes do it today . Im worried that it will be a little lower, wilfred. Exactly. I think the concern for me is that there is a lot of expectation built in to the 5g super cycle, and like i said i am not sure we are going to get that i believe that apple merits a higher multiple that is thant has gotten in the past i am happy to see 20 times historically they have been 15 items or below right now they are well above that and that makes me a little nervous. Chris, how are you thinking about the multiple multiples for all tech are tough right now. You certainly have to acknowledge that we are well ahead what have we have been in the past listen, thats the whole market right now. And you know, we have hesitated to make negative calls just solely based on valuation because, you know, for the past several months that would have just been dead wrong we are glad we stuck by it we are looking at stocks that have good earnings momentum, are numbers going to go higher than where the street is right now . How long is the cycle . Again, in. Aels case, i dont think this is it for the 5g cycle. 5g isnt rolled out around the world yet. Right now, really, china is the main market that has, you know, durable 5g you are going to get more of this in the u. S. As the year goes on. You are going to roll out worldwide really over the next two years. And you know, finally, as we look into the apple product lineup, based on the checks that we do. We expect a form factor change next year, which gives people you know another reason to kind of take a look at the lineup we dont think this is quite it for the 5g cycle here. Chris one of the arguments where they deserved the higher multiple was the shift to services and the stickiness of Services Revenue and that that warranted a higher multiple than being a Hardware Company that said, though, for the next couple of quarters are we not focused more than ever on iphone sales, on hardware sales yes, and yes. If you spoke to me a year ago, i was not a proponient of the Bull Services thesis. To go back to a year ago, those who were bullish on the stock focused on the services and that can power the stock. Our view is service is a great addon but cap work in the context of a kdeclining iphone phone has to be healthy in order for services to work now thats the case. Now iphone as jeff said since last year, iphone 11 was healthy we think 12 is looking healthy also, then you can add on some thing to it. Certainly, it has been a tail wind its certainly a point of debate of whether that deserves the multiple where the stock is right now. But, serges it is an ad on in the context of a healthy. Phone environment. Jeff, how do you factor in the growth in services and the multiple expansion from that continued growth with your somewhat bearish view here i think you can have both, right . If apple is traditionally at 15 times and there is plenty of room for multiple expansion from that, just perhaps not quite into the upper 20s, and i am very much with chris i think the iphone is the center of the Apple Ecosystem and thus, ultimately, the Services Business cant be divorced from apple, the iphone. So i im not a proponient of [ indiscernible that they use for valuation. Jeffrey and chris, great discussion thank you for joining us. Thanks for having news thank you both. Up next, losing energy oil on track for its second straight monthly drop with crude prices down 11 just this week we will discuss how the election could impact the energy space after the break. You are watching closing bell on cnbc. At calvert, we know responsible investing is hard. If youre concerned about the environment and climate change, how do you find companies that are driving the right outcomes . 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Wgi plunging by over 10 for the week following new concerns on how surging coronavirus cases could impact the commodity and objectionon mobile after reporting its Third Straight quarter of losses, chevron moving higher after posting a profit after forecasts for a loss lets bring in an analyst from Raymond James and and Stewart Glickman to what extent do you think this decline this week is due to coronavirus fears versus election fears how much of an impact do you go a joe biden presidency could have on the sector and on the commodi commodi commodity . The drop in oil price is 100 tied to the second or perhaps third wave of covid. Germany and france went back into lockdown. A lot of smaller countries, poland, austria, parts of the uk, parts of illinois doing the same thing this is bound to have a negative impact on demand there is no escaping it. The oil market will have to get pasted this really critical space of the pandemic, get past the wintertime before sustaining its recovery into the spring and summer of next year. The next 100, 120 days are going to be tough. Start to when you look at the options to invest in, the majors like exxon and chef ron have they priced any of this in the whole space is under pressure there are few places to hide the natural hedge, where you have upstream are suffering and traps downstream or chemicals doing better, thats not the case this time around. Covid pointed out that every Business Associated is doing poorly yes, the shares are under pressure we think there are better places to look than being in the integrated at this point. Back to the election for a moment, energy has become a critical issue in swing states like pennsylvania and ohio and the Trump Administration is campaigning on the fact that it is better for energy and that biden would shut down fracking and impose regulations you know, his messages have certainly been mixed on that front. We went back thank you melody myers for doing the work here and looked at Oil Production during the obama administration. Over two term. It rose 75 in this country. Under trumps administration, his only term, 23 higher. So does it really have anything to do with who is president . And would joe biden necessarily be bad given that track record it has practically nothing to do with who is president and everything to to with the global commodity cycle. The number of rigs drilling for oil right now in the United States is close to its lowest level since the days of rockefeller and standard oil 100 years ago. Thats an amazing statistic. Is that because trump is not sufficiently supportive of fossil fuels of course not. Its because we have a Global Pandemic that has caused the worst demand disruption in the oil market in important history. So on top of that, we have the fact that many oil and Gas Companies are trying to be more disciplined with capital, preserve their balance sheets. This started even before covid, years ago. You put those two things together, and there is simply not the same level of appetite to drill as there had been for example, in obamas first term by the way, biden has made it clear he is not aiming to ban fracking, you know, on a National Scale but even if he wanted to, that would be highly unlikely to stand up in court. So a bit of a moto point. Stewart, if we get through the election smatly next week and the market starts to focus again on High Expectations for a large stimulus package, whether it is in weeks or months, would that be enough to boost oil prices again and boost with it some of the oil majors or is that really linked because of the supply demand equation for the commodity itself i think it is really a supply and demand situation i think the conversation is going to turn to policy. If we ends up with a biden administration, i agree that i dont think that a ban in fracking is in the cards but you could see some levers being pulled with respect to Energy Tax Policy and with respect to the willingness to continue issuing permits to drill on federal land so their funds out there who have more exposure than others to federal land. Many of them do have in hand a couple of years worth of permits. It is probably not an immediate effect those are going to be the bigger drivers from a policy perspective. And of course what happens with supply and demand for crude is going to be a dominant factor in where we go from here with crude oil prices pafl, how much of it depends on investors appetite going into these stocks and esg and all the changes around the environment and toward cleaner energy and with Corporate America and the world moving in that direction, how much is just going to depend on how these companies pivot that way well, for, you know if we are looking out decades into the future, there is no question the decarbonization mega trend will continue indeed, it will probably accelerate and there are some thing on the policy level that you for example, for example, the european climate law, which is coming down the pike in about six weeks time, very big deal for energy you i think the main factor here is the Technological Progress in low Carbon Energy solutions. So everything from wind, solar, more advanced bifuel techniques, wood palettes, so forth. All of these will have already cratered demand for coal in the electricity mix in large parts of the world and eventually Global Oil Demand will peak as well. Now, to be clear, we do not anticipate that happening until perhaps the second half of the decade so this post Covid Recovery will have time to play out. But, yes, the pivot in the oil and gas industry away from fossil fuels towards low carbon will only accelerate over the next five to ten years oil stocks, the sector down 5 for the month thank you for joining us, pavel and stewart. Good to have you both here we are off the lows, down 354 now on the dow we are down more than 500 at the low point of the day still a broad based selloff. The s p is capping off pour than 2 decline for the week. Up ahead, the clean teeth trade is alive and well. And the parent of rubber maid is doing well the two bucking the trend in the consumer space. The biggest losers for the week boeing, american express, and visa the lockdown measures putting pressure on airlines and boeing. Much more straight ahead on closing bell. Before money, people traded goods. Tools, cattle, grain, even shells represented value. Then currency came along. They made it out of copper, gold, silver, wampum. Soon people decided to put all that value into a piece of paper, then proceeded to wave goodbye to value, printing unlimited amounts of money as they passed the buck to the future. Thats why its time for Digital Currency and your investment in the grayscale funds. Go digital. Go grayscale. Keeping your oysters busihas you swamped. You need to hire. I need indeed indeed you do. The moment you sponsor a job on indeed you get a shortlist of quality candidates from a resume data base claim your seventyfivedollar credit when you post your first job at indeed. Com promo just under 40 minutes to go in todays trade lets check in on some individual Market Movers with the dow down 352 points. Newell brands trading higher after reporting strong earnings. Seeing strength in food and Home Fragrance divisions. Higher by 4 1 3 last week we told but the moment of tooth, how people are spending a lot to keep their teeth clean. Shares of Colgate Palmolive hitting alltime highs on the back of an earnings beet citing up crease in demand for personal care products. It was png, and know colgate, not just invisalign. Incisive analysis moment of tooth wins the day happy to bring it back again like incisors now, did that work . Not quite. Nearly it was good i got it. Payments Company Square shares falling sharply today. Down more than 9 today following a wall street journal report it is looking to buy credit karmas tax preparation unit it is on pace for its worst week since april and worst month since march. The sale of karmas tax unit could have to do with answer trust concerns from the d. O. J. Intuit owns tusha tax, which could mean less competition in the on line tax filing space there is always worries about the value of this deal for square and squares track record on m a part of this weakness could be tied to darcys other company, twitter,