This is appointing to how things open in a half hour. Down, way down. This is Dow Jones Industrial average futures. Its a look how things are going to work out 29 minutes from now. Were going to be down around 675, thats a significant 4 drop, its huge. Look at the price of oil. Fresh 6 1 2 year low, 39. 03. Now at 38 again. And that, go en, is a huge selloff, but i want to trigger right at the start and get into the drop in china. Look at these declines in asia. Starting with the shanghai at the top down, 8 1 2 . Hangsang index, hong kong, japan down 4 and south korea 2 . Mary kissel is right here. All right, china, there are reports theres speculation that the government in beijing has lost control and thats scary. Well, i dont know about that, stuart. Look, china may have been the trigger for a reality check for the markets. What has happened over the last six years, you had very low Interest Rates that let governments all over the world and china were particularly big spenders, several times what happened in the United States. The low Interest Rates let government spend and borrow and tax and in the United States, huge regulations on the productive parts of our economy, on the coal sector, on the elk had sector, on the financial sector, for hadden Profit Education sector and we needed one trigger event for investors to wake up and say, wait a second, where is the growth here . Theres no growth. When you talk about inflation, well, we had inflation, it was called asset inflation with the low Interest Rates and people went into stocks, they went into commercial property and i think what youre seeing today is investigators, because of china, stopped and they said, wait a second, where is the growth . China is the bursting bubble. Thats right. China is the bursting bubble. Without a doubt. Youve got Retail Investors and youve talked about this, stuart, the markets in shanghai, theyre mom and pop Retail Investors, mom and pop, they dont base their bets on the market on whats going on in the economy, they base it on whats going on with the government. Stuart thats right. When they know that the government is out of options what to do to prop up the economy, thats where we see the huge selloff. 8le 0 of the shanghai market is owned by the small retailer. Thats right, but remember, ping was never a reformer, the first thing he did when he came into office was consolidate his power and made it harder for foreigners to update and transfer. He devalued the currency and encouraged stock market speculation and the low government borrowing continued. That economy and that growth wasnt based on real supply side reform. Stuart he is the emporer, the chinese emporer with no clothes. Thats what happened. Ashley thats right. Stuart of course, their problem now becomes our problem. Were going to open down, 670 points after 1,000 point drop last week, 15 is the first, the handle, its going to be the handle right there. Look at the price of oil. Its still below 40 a barrel. Its falling. Its 38. 99. Come in from london, former shell oil, john hofmeister. How much lower . Nobody knows, thats the answer and frankly, its out of our hands now. Its out of the hands of the industry, its really into the hands of the traders, the traders will do what they do. The perception a glut is much bigger than the reality of the glut. Every day, stuart, we need 91, 92 Million Barrels of oil to keep the world going, even in the face of the reductions that were seeing in the economy in china. 92 Million Barrels a day, thats a lot of oil, and it would only take a couple of days to eat up all of the surplus thats out there and we could see the lower the bottom, the bigger the bounce. Okay. The price coming back. Okay. Right now, its 38 a barrel, 38. 90. Let me ask you this, you used to run shell oil. You know a thing or two about Petroleum Economies. Whats the effect of Petroleum Economies from russia to saudi arabia to venezuela to nigeria. Presumably theyre in terrible shape because of this . Well, i think that theres a strategy here going on with saudi arabia, making sure that iran and russia pay a huge price for the way in which they are meddling in the middle east. And i really believe that is the case. But meanwhile, as an oil executive, the first thing you do, you just cut costs. You just dont spend what you dont have to spend. And take it out, if it continues, out of the threeyear, fouryear, fiveyear time frame and if its further you stop development in the later part of the decades. You retrench and pull it back in so you can survive as a company on the lower price levels. That means layoffs and canceled projects and supply chain is pressured for Price Reductions and that means everybody suffers, except, stuart, the consumer. The consumer has a field day. Stuart and weve often got bark backward and forward, i think that 2 by the end of the year. Youve got 20 seconds left. You still disagree with me about the price of gas for the end of the year . I think we will see 2 i agree with you there. But dont be surprised if by november, december, were looking at spiking prices. Stuart john, i will be astonished in i see spiking prices in november and december. I pay off on the dealt debt. Nicole petallides, im looking at a loss of almost 700 points. Nicole unbelievable. Last week over 6 on the nasdaq. There was a hope that there would be a turn around today. The traders said on friday as they were walking out the door, they were going to look for china. What are we seeing, 8 1 2 selloff the worst weve seen since 2007. So that being said. Theyre coming in here this morning, preparing for an opening of down 4 . Theyre watching, by the way, the Circuit Breakers. If were down 1100 points basically, then you have a halt of the entire market, lets hope we dont get to that point. But, there are some people who are saying, hey, you liked apple at 130, you must love it at 105. There are people that are going to put money to work this week and there are people, one of the traders said im hedged on both sides. Theres a waited and see mowed and those looking for where theyre doing some tickets. Not surprised to see it go down. Well be back to you very, very soon. Im looking for people who think that apple at 98 a share is a good deal. Im looking for people who think that. Ashley this environment its tough to jump in, but yes, takes a strong stomach. But if you look at a little history, i was actually on the edge 1987 stock market crash and went down 20 odd . Do you realize the dow industrials closed that year higher on the year after that crash of october 19th. That took place. The thing is investors have relied on the fed in the obamacare a to come in and to buy. Every time the fed said, oh, we are a standing pat, the markets would go up, but thats not true anymore, stuart. Stuart its not possible any longer. Ashley no. They were relying on an artifical boost to the markets. The fed may not raise rates the next time around, thats not a good sign, thats a sign of weakness, so this may continue for a while. Stuart down 719 points, looks like. 722 as we get closer to the open of trading which is at 9 30, that is what, 21 minutes away from now. Again, im looking to see if people jump in at some point for what they think is a bargain. Ashley the other point to consider here, is how much electronic High Frequency trading playing into this. Are there programs out there, you hit a key level, a sell button . In the old days it wasnt quite like this. Were seeing gathering momentum. And i think a lot of this is electronic trading. Stuart it acquires is internal momentum of its own and pushing it down. At that point sooner or later, some people say apple 90 od dollars a share is a bargain, get this thing, please. Down 717 as we speak. The price of oil, thats another thing that leads us down, and its down today. 38 per barrel. Its historic action on the markets, yes, indeed it is and now, donald trump. He was on fox and friends this morning. Listen to what he said about hedge fund managers. Well, theyre making a fortune and i want to take care of the middle class. You know, we had a tremendous rally in alabama and people came up and said youre treating us fairly, the Hedge Fund Guys are paying nothing. Theyre paying nothing and what are they doing . You know, one thing if youre building buildings, take a little bit of something, build buildings and put people to work. The Hedge Fund Guys move around papers and many, if the market goes up if theyre geniuses. If the markets go down, they go into a different business. Stuart well, they pay a Capital Gains tax rate lower than the incomment tax rate. Ashley compared to 39 something. Stuart i think that trump is jumping on the band wagon of bashing wall street. Ashley he is and also jumping on china, too, stuart. Because thats the big wait, lets hear what he actually had to say from trump on fox and friends on china. Frankly im the one who says you better start uncoupling from china because china has problems and big problems and theyre thinking us down. Stuart how do you uncouple from china . How to you do that. Ashley you cant. And he doesnt like globalization . He doesnt like competitive comparisons . Thats an absurd comment. Stuart it is, you cannot uncouple just like that. And no one it wouldnt be good for anyone, not good for our economy, the Global Economy and their economy. Stuart now down 723 points, pointing in that direction, pointing, okay . This is not set in concrete. That dow futures indicator moves up and down very, very rapidly. When we went on the air at 9 00 precisely, 11 minutes ago, we were down about 640 points and now its 742 points. Ashley down 111. Stuart youre talking extreme volatility. Be careful of that. Dont imply its worse than it actually is. Ashley the volume today, number of people buying and selling shares, not many buying. Last friday was the busiest volumewise of the year and basically see if we have that kind of conviction today. Stuart weve had various forecasts on this program and others on fox business, about whats going to happen on this market. And anthony scaramucci, a money lan manager himself on marias show suggested by the end of the year this market would be 3 to 8 higher than where it is now. Thats quite a prediction. We also had shah galani, last week and last night, did a special on the show, down 20 . The forecasts are all over the place. Youre on your own. And he manages money and think or say about this, and okay, are you going to be doing any buying at all today . Well be buying and selling, stuart. Its one of the situations that we talked about this last night, what we try to do is upgrade the portfolio, call the portfolio of weak securities, that are just not making the grade and its an opportunity to buy some of the companies that you missed at great earnings reports, but are being down today and all last week by this market. Stuart what about some of the big names that are really beaten up . Im thinking of netflix and apple, how about those stocks . Would you put your foot in the water there . I certainly would look at apple. I think some of the higher multiple stocks like netflix are going to be under particular pressure and i have an issue with netflix, a great company, but priced as though it will never have any competition. I was in a hotel last night, stuart and passed a table with probably 20 kids with Laptop Computers and every one was an apple. I think that apple is going to be okay. Stuart the key test,david nelson, would you buy apple today if it drops to 95 . I absolutely would. Stuart there you go. There you go. Stuart 95 is a buy signal for david nelson. Okay, Keith Fitzgerald joins us now from seattle. By the way, now were down and listen to this, the futures show an 800 point drop at the opening bell in 16 minutes time. 809 points and counting and i see Interest Rates tumbling, treasury bonds, the 10 year bond 1. 95 . A tumble in the yield and a tumble for wall street in a few minut minutess time. Keith, your analysis, real fast . The fed has failed markets and traders are taking matters into their own hands and cant understand the uncertainty. I wouldnt get too worried about it if youre a longterm investor. Be cautious, but now is the time to act. Stuart would you buy apple at 95, if it went to 95, i dont know whether it will or not, but would you buy it . No question i would recommend ample at 95. Anything else . Big names. Youve been on the show all the time and we concentrate on very, very big names. Which big names would you buy and at what low price . I tell you, i dont have specifics right now. The markets are moving fast. The list off the bat. Netflix and google, amazon and consider microsoft and look in the energy sector, williams kinder morgan, Quality Companies for which the shortterm Business Case is intact. This is a market movement, not an economic one and thats a big distinction. Stuart as for the small investor, mom and pop, people sitting on some retirement money or college savings, sell or hold tight . If you can afford to hold tight, obviously, thats what you want to do because shortterm aberrations come and go, stuart. Weve talk about. If you have to sell and a liquidity event, unfortunately not a lot you can do about that. Hold tight if you can. Stuart what would you be actively selling into the decline . Well, weve got a list of things that ive talked about frequently. For example, twitter, shake shack, less than quality stocks, weak money driven by highs. Anything thats nice to have, its gone right off the table and thats something we knew coming into this mess. But the quality stuff, we want to hold on and add to, if knob. Stuart okay, im looking at the futures, which are declining rapidly as i said, 16 minutes ago we came on the air with futures indicating a 640 point drop. Now, 16 minutes later, the indication is for an 85 point loss. Extreme volatility. Keith, for the average investor, you must sit back and watch. Surely thats the name of the game today . Well, if you can afford to do it, thats what you want to do. The worst i think you can do is panic. I know its counter intuitive. Thats what wall street watches, this is taking it out to the cleaner, taking the fed to task. If youve got the ability and right perspective, three to five years, this is going to be a speed bump, believe it or not. Stuart mark is with us, mark welcome to the program. Now, are you telling me that you called this action today . Well, i did a blog over the weekend putting sharing some parallels to 1987. Even though were not down the amount that we were in 1987 percentagewise, this is a pretty big decline. Stuart and the parallel would be, mark, that back in 1987, there was a huge downside move on thursday and friday, the really big move came on the monday, is that the parallel youre talking about . Well, yes, thats the basically speaking, but theres some things internally that were very consistent with 87. Stuart back in 87 the market finished the year above the crash level. Well above it, in fact, i think it gained ground on the entire year. Are you predicting the same thing for the dow this year . Well, woo he we dont know how far its going to fall, but type of trading very quickly because put volume had exploded on friday and im sure its going to explode more today. So you have a tremendous amount of fear here and thats probably going to lead to some type of stabilization, but we dont know how far its going to fall before that happens. You dont want to jump in here and start buying because the market is down. Stuart well said, market minn minnervini. Thats the important point, what is the floor . Its not just china, its not the United States, its europe. Europe had a debate about austerity versus keynesian Government Spending. They didnt discipline greece. There was no fiscal discipline there. Where do you find the growth . Where is the safe haven here . You showed the oil price, to me, what thats staying is were recognizing that global gdp is shrinking. The growth is nowhere. Scott shellady from the cme, come in, please. Can you describe this as an element of panic on your exchange . No, like i said on friday, its maybe that the celebration of the ration l a man. A lot of guys behind me may say theyve seen it coming. When we were at alltime highs, nobody could look anybody in the eye and say that the economy is selling at all time cylinders, its a good thing for the market and obviously, people are going to have pain here. Because fed pushed mom and pop, and the reason why were seeing it react as much as we have. Were looking to attach some blame here, are you saying that the fed is taking some chunk of the blame . Absolutely. Haug 24th, 2015, is the day that the fed has lost control. Whoa. Stuart thats a strong statement, lost control. Does that mean that theyve got no tools left in the box to fix this thing. If they tried printing more money, thats not going to work, if they try raising Interest Rates, thats clearly not very good for the market. Youre laughing. Why are you laughing about the suggestions that they raise Interest Rates . I cant believe people are talking about it. Its definitely not happening in september and definitely not happens in december and every time they buy more time and only puts them in more trouble. Theyve painted themselves into a corner, theres nothing they can do. Stuart how about china . Same story there . The authorities have lost control, nothing they can do . You know, were talking on our desk, the great fall of china or the end of the bling dynasty. Thats what were talking about. Its worse and i think its coming our way. Stuart thank you, Scott Shellady. Is there an element of panic with ten minutes before the market opens . Absolutely. Youre seeing in the orders stack up and feeling it come in around the edges. To scotts point if you buy low and sell high, this is the shakeout everybody longed to happen. And the fed is to blame. Theyre managed it terribly in the beginning and the markets have taken it into their own hands. Stuart youve got agreement. Its not just the fed. Who else . Its the president because the president bet that