Investor john calamos here with his take on what investors should be doing right now. Could apple help pull this market out of the funk. Apple due out with earnings at 4 30. Well have the crucial numbers the moment they cross with the analysis they need. Apples results will be watched closer than ever. Regardless, it will have a huge impact whatever apple does because of the size of that company. It will have a big impact on markets tomorrow. Lets look again at this hour of where we stand. The tenyear u. S. Treasury yield is pretty flat. As a result earnings moving the indexes to some extend. We have caterpillar contributing in the range of 40 points to the dow which is up 47 at this hour. Take a look at the nasdaq. This the underperformer today and its the social media names which we have to watch. Its off about 0. 4 or 16 points. And the s p 500, as mentioned, is fighting to return to positive territory. You can look there at the chart and see this turnaround weve had since midday. Lets talk about the markets in our the closing bell exchange. Joining us now is Rebecca Paterson david kudlow anthony chan from chase, and kenny from oneill securities. Our own Rick Santelli is along as well. Kenny, to you first. How does it feel down here after the carnage late friday afternoon . You know the carnage, lets not overdo it it wasnt carnage in the sense it was a bloodbath. There was a reassessment. Today weve had this 20point swing in the s p. Now were rallying back. 1788 yshish is a level where it wants to find support. You can feel them wanting to push it back there and try to close it at that level today. But by no means do i think this correction is over at all. I think theres more to come. I think no matter what apple does tonight apple is just one company. I think theres bigger issues that the market has to deal with. And we want to hold this thought for one second. Do you have any or news on the herbalife story you mentioned moments ago . That stock, of course moving higher by 69 . There was some news i delivered that tim ramey the analyst who was wall streets biggest bull on herbalife was leaving it. It looks like hes going to join bill steer ritz. Hes one of the guys on the other side of ackman. This is a guy who is long on herbalife. Long herbalife. George soros firm at a time. Thats an Interesting Development most significantly because of what it could mean that happens next. I read you a letter ramey sent out saying he was going to do some strategic m a type stuff. The word on the street is eventually steerich will do an lbo or a giant buyback. The fact ramey is going to work with him makes this story more juicy than it has been. Does it demonstrate the conviction both of these parties have in the herbalife story . I think theres no doubt about that. I think one of the reasons why the stock had moved up the way it had was in anticipation of what all of this could mean. You have the biggest bull on the street and youve got one of the biggest bulls with deep pockets behind herbalife. Who knows what happens now. Shares are up 8 at this hour. As we get more news obviously well talk to scott wapner about it. Want to get back to the markets more broadly here which are cast being a little bit for direction. Anthony, what is the next move do you think . I think the markets have to stabilize here. The big concern is emerging markets. We heard some encouraging news from china. We heard some encouraging news from caterpillar. So as we continue to receive more stabilizing news i think things could stabilize, but were not there yet. Were not there yet. David, weve seen declines of about 3 to 4 almost 5 across the major indexes in just the past several trading sessions. It seems like a 4 correction is all this market has been giving us since 2011. Do you think well continue that today . I think that well see this go a little further. We havent had more than a 4 or 5 pullback along the way at least over the past year or two, and i think we have further to go this week because of the fed meeting, because of gdp coming out, and these continued problems in emerging markets in their currencies. Were seeing the impact of quantitative easing coming back out of the system and what that means to emerging markets, the currencies, and its not enough to cause a market top in the u. S. We think its enough to cause a correction more severe than weve had already. We look for more volatility this week. Rebecca, is there a difference between a healthy selloff and an unhealthy one . Absolutely. You know as was just said weve had corrections of anywhere between 2 5 6 that will last a few days, a few weeks over the last year and a half. Every time that dip was bought and the market has gone higher. I think consolidation within broader trends whether that trends up or down is part of the process. I think you always ask yourself is this just a consolidation or is something fundamentally changing . And in the case today at least so far, i dont see anything changing. Data out of europe continues to be very strong. Data out of the u. S. Mixed, but i think generally improving. Rick santelli were about to embark on a twoday fed meeting. Do you think theres any possibility that as they have watched whats taken place in the emerging markets, that theyre going to be spooked enough that theyre not going to continue at least in this goaround taper . I personally dont think so and i personally dont think it would be a good idea to back away even if it gets to be bigger tectonic shifts in the emerging markets in china. Of course, they can do anything they wish. The issue continues to be that, you know, when do you move from emergencytype programs to some normalization and the longer you postpone it what ammunition does that give you should there be a fresh deterioration . You know the more i talk to various traders about what happened towards the end of last week and we continue to see stock and treasury rates correlate very highly and it makes sense because stocks are the messenger of that bad news consider this. Lets say the chinese economy is anywhere from 8. 25 to 8. 35 trillion. Many believe their shadow Banking System represents 33 of their economy. I think thats more than enough to make traders and investors a little nervous when they see like the pmis and some of the peripheral issues in chibna. Lets talk to the trader sitting right next to us. Are we not giving whats happening in china either from an economic standpoint or a possible credit standpoint enough play . I think it needs to get more play until it really plays out, right . Here is what i think. I think the fed is going to hold the line at a 10 billion withdrawal. I dont think theyll increase it, but theyre not going to decrease it. I think in my opinion based on what we have seen the last couple days the meltdown in the emerging markets, whats happened to the currency kind of the sense that youre getting here in this country, its last thing they want to do is see the market fall out of bed. A test at 1765 is not out of the question. Anthony, do you think this will be yellins first big test . Granted, she wont be leading the fed until the march meeting. I think what the fed actually can do is continue on the 10 billion tapering but they can actually say if this gets out of hand, its a variable they will be watching closely. That in itself will calm the markets because it really says theyre not tone deaf. As for china, lets not lose sight of the fact that they dont want another lehman moment. Every time the shortterm rates go up, what does the Chinese Central Bank do . They go in and inject liquidity. I have no doubt that theyre watching everything carefully. Nobody wants another lehman moment, including china. Well moral hazard becomes a question for another day then. Thank you so much and rebecca, really appreciate it in this busy hour. Have a good one. Investors are getting some whiplash again from this market. Sheila, what is driving things today . You got to talk about earnings so lets kick it off with caterpillar which is moving higher on stronger than expected Fourth Quarter earnings. The company also announcing a 10 billion stock buyback. Fellow dow component merck hitting an alltime high as Morgan Stanley upgraded the stock saying the companys prospects for a new cancer drug have improved. On the flip side we have to talk about tata motors. That stock is down after Top Executive who headed its indian operations died suddenly over the weekend. Police say it could have been a suicide. Xerox was downgrade edd citing valuation. Finally, lets talk about sony falling after moodys cut the debt rating to junk status. Scott . Sheila thanks so much. Take a look at what we have left. About 50 minutes on this monday before the closing bell rings. The dow jones, a nice snack back at least from certainly earlier on in the session. Were up 50 points. The s p 500 as i see it is up by just a couple. Even the nasdaq is only off 15. Well see nasdaq was off by more than 50. Exactly exactly. Keep a close eye on that one. Emerging market weakness continuing to weigh on stocks. Well tell you exactly whats been going on overseas. Plus well look at the Exchange Traded funds for the markets have that taken a beating and wonder if now is the time for bargains bargains. We want to know what you think the fed should do this week amid this Global Market turmoil. Should they keep tapering . Well reveal your best tweets coming up. cnbcclosingbell is how to reach us. Plus well hear from john calamos. He will join us later exclusive exclusively on the closing bell. Jur watching cnbc, first in business worldwide. Opportunities arent always obvious. Sometimes they just drop in. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. Welcome back. Emerging markets are a major culprit for all this angst. Michelle carusocabrera joins us to break down whats going on, michelle and why your investments wound up in the crosshairs. The emerging markets slightly calmer today though it took an Early Morning announcement of an emergency meeting by the Turkish Central Bank to calm things down. Its expected that the tishgishurkish central bank will announce a hike in Interest Rates. We could do country to country with loss specifically issues. What is true in general about all of them is the following. They lived as if Commodity Prices would rise forever and that Interest Rates would stay low forever. Now with the fears of a china slowdown you were talking about it last block, Commodity Prices wont necessarily stay high. With the u. S. Economy improving, the fed tapering Interest Rates may not stay low. Another key thing to watch, china, its Banking System you were also talking about that. Theres a fear that a big Financial Product is likely to go bust late they are week when it matured on friday and could that have a wider Ripple Effect and lead to some kind of banking crisis in the country. Those familiar with the chinese economy say those fears are overblown, but this market is very nervous about what any kind of unknown financial links may exist. They always seem to be revealed in the crisis. Exactly. Thank you, michelle. Many investors have exposure to emerging markets via Exchange Traded funds or etfs. Bob pisani is down in florida with the inside etf conference looking at how the emerging market etfs are faring and which may be the babes being thrown out with the bath water making them possible opportunities for investors. Hey scott. Big etiongest etf conference in the world. Lets talk to the guy in charge matt hogan is the man who puts this together. Hes the president of etf analytics at etf. Com. The whole session in the afternoon is on emerging markets. Tell us what the buzz is what are people say being what to do with emerging market etfs right now . Emerging markets are a disaster. Weve been running this conference for seven years and if you bought eem, the broadbased etf, held it for seven years, your total return is actually exactly zero to this point. People were talking about can they call the bottom in this emerging Market Correction . From what we see the baby is being thrown out with the bath water. The good countries and bad countries are going down together and until you start to see some differentiation there, you dont have a turn. Eem is the main etf thats out there. Kelly and scott, get in on this. Bob, thanks so much. Look, im fascinated by this point that the eem in particular has been such a disaster. I just wonder, you know, is it fair to at least try and look at that as one way to play emerging market value if it gets beaten down enough or alternatively, are there other etf options you think are a better bet and why . I think its time to be specific in emerging market etfs. The big emerging market boom we saw in the last deck wade was driven by Natural Resources. If you were exporting emerging market, you did great, but that game is over. That was driven by chinas big growth boom. That story has played out. The story now is the emerging market consumer. Rather than taking a big bet on eem, you want to narrow your focus. You want to look at a country like mexico eww, which is a great consumerdriven story. Or poland or maybe even into china where the consumer stocks have been doing extraordinarily well. Theres an etf, chiq that gives you exposure to Chinese Consumer stocks. Those have been doing well as chinese financials and industrials and Energy Stocks have suffered. You can be more specific in your target. Your point is get away from the focus on commodities and focus on consumers and the internal growth of consumers so youre talking now mexico youre talking poland for example. This is not the old brics paradigm. Brics story is over. Emerging markets are being broken up into Natural Resource driven economies like brazil which are suffering from inflation and these new consumerdriven economy that is have take. The next leg up in growth. You can play it in mexico in china, you can play it in poland as you suggested. One thing we talked about earlier, bob my favorite emerging market play in the whole space right now is actually not emerging market at all. Its spain. Spain . You think spain is an emerging market . Its the best maeshlemerging market for investors. Why is it an emerging market . If you think of where it was three, four years ago, 25 unemployment, high deficits old labor laws. They have been forced to get rid of those. Their industrial economy is turning around. Spain as an emerging market. Kelly, get back in. Currencies are such an important part of the story anytime people invest outside the u. S. In fact they can be entirely responsible for the gain or loss, forget what the fundamentals for the stock market in that country. Do you recommend People Choose a hedged product or not . Thats a great suggestion. We love hedged products generally in developed market theres a great hedged etf, dbem that gives that you exposure without giving you the exposure to the emerging market currencies. We do like it. There are some costs involved but we like hedged exposure. Last question quick answer. Is china hopeless . Is there nothing you would say any etf to invest in china . I think there is hope this china i just think its in the Consumer Sector and not the industrials. And you like chiq a basket of Chinese Consumer stocks. Thats exactly right. If you look, its not far off its highs. Those stocks have been screaming recently. Theyre making money. There is an emerging class in china. Its just all the banks and the resources that are dragging it down. So get rid of those, narrow your foous, and hit that Chinese Consumer. Our fifth year the conference keeps growing. Congratulations on the success. Guys back to you. Bob and matt thank you both. You can be sure to catch much more of bob and coverage at the inside etf conference on our website at cnbc. Com. 40 minutes to go before we close it up on this monday. A bit of a snapback today and were holding onto the gains which is interesting as we enter the final stretch. The dow is still up more than 50 points after that steep selloff and has not had five straight down days in a while. We were looking at that today so hopefully well break that streak. Thank you caterpillar. Some troubling trends are emerging this earnings season. 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