About, right . Probably most concerned about german policy makers. In other words, not the ones at the central bank. Its mario draghi saying to the european governments, its up to you. You have to take the ball here. Meanwhile, in the u. S. The deficit is down below 3 of the gdp. Well go into the crucial final hour of trade. The dow down 319 points. At the low it was down about 345. The s p down 38 points today. Weve taken out obviously yesterdays lows. Now at 1930 and change. The nasdaq composite is down almost 1. 9 . Thats down 2 1 3 . 1071. Weve also been watching oil which today closed at a twoyear low. The price of wti crude here in for delivery around 85 a barrel. Now i see it at 84. In the electronic trading it continues lower. You know from the electronic trading figures, the futures, that we can follow oil is in a bear market. Down 20 from its highs just this summer. So talking about that. Keeping an eye on Interest Rates. Lets get to it now in our closing bell exchange. Joining us kevin koran, jim lowell, Heather Hughes from sun American Funds and our own rick santelli. So welcome one and all. Jim lowell, why the selloff here today . How would you describe, summarize this market . Whats going on . Well, first of all, i dont think its all that surprising that the markets are pulling back. I think its surprising its taken them this long to do so. Obviously comments from draghi about secular not cyclical issues. Attending the eurozone where we think and have been talking about it sliding into a mild and recoverable session. Looked a little bit closer than they did 24 hours ago. Ultimately we like what we see. The smaller cap indexes are in correction territory. Thats where youd expect the brunt of the selling to be. The megacaps are basically holding their own, giving up a little bit today. So long as this market sells on fundamentals, we think at the end of the day it will be a buying not selling opportunity. Peter anderson, warren buffet said on mondays big selloff he was in buying on that day. Are you buying on these selloff days as well right now . Well, as you know, i usually do. I have to tell you, this week has been kind of perplexing. I think its been one of the most challenging weeks for managers. Yes, glad you said it. Just in general. Lets just layoff some of these things. I dont know about everybody else, but i was really surprised about the minutes. I didnt expect that kind of direction that the minutes took. Then of course you get what surprised you the most about the minutes . They were dovish. They showed concern about the rising dollar, the slack in the allegra market but what surprised you . Well, you know, the fed is supposed to have whats called a dual mandate, right . Theyre supposed to be looking at unemployment and Interest Rates. In our office were now saying well maybe the fed has a quad mandate beside those two factors its also looking at the u. S. Dollar and the european conditions. So its kind of expanded in our opinion. Thats not true. Its all look, the dual mandate, all that comes down to the fed trying to gauge growth and react to it, you know, correspondingly, inflation, too. They would be crazy not to take the global considerations into effect and take the move of the u. S. Dollar into effect, peter. Point taken, but ill tell you this, that the first and foremost in my opinion is the u. S. Economy, and, you know, kelly, i think u. S. Economy is doing just fine. I expected them to say that the first half of next year there would certainly be, well, not this strong words but that they would still consistently hint that rates would be rising. They would raise rates in the first half. And that was absent. Then today you get some of the regional president s like the one out of st. Louis kind of backing backfilling that and saying maybe we do need to raise rates. But, peter its very confusing. Peter, i would say that yesterdays rally does still make the case in point that the market is correlated to stimulus or keeping rates longer lower for a longer period of time. Do you think that correlation still holds true as we continue . Its a correlation that is frustrating to me because i think that what we should have is a steady drum beat of increasing rates to reflect the fact that at least the u. S. Economy by almost all measures seems to be getting stronger, and i agree with you. The correlation does not make sense to me right now. If the economy is getting stronger, and i hope youre right, what is concerning to me is that oil may be a leading indicator of the economy. It tends to move before stocks, real estate, bond indication if the economy is getting stronger. The fact that oil is at twoyear lows right now is somewhat concerning also. I want to know why oil is not participating. Youre seeing the Energy Stocks take a hit today and to jim lowes point, the Consumer Staples are down also but relative to the rest of the market youre seeing that flight to quality, the safe haven and the megacap large value sector such as the Consumer Staples. Kevin coron, why dont you take that oil question and what it says. Yeah. Energy stocks certainly have suffered as a result, but it can be good for the economy obviously especially for the consumer here. Yeah, in fact i think that explains all of this, the twospeed Global Economy were dealing with. You have europe thats essentially growing at zero or not growing at all, germany contracted in the last quarter, you have japan trying to stoke growth, you have china growth is decelerating, meanwhile you have this island of improvement here in the United States. So what you have is weak Global Growth thats affecting the Commodity Markets including the oil price. Theres a lot of supply out there and then the dollar is explained, too, by that. Right. The fed needs to let the Dollar Strengthen somewhat to put some purchasing power in American Consumers pockets to buy from all of these other places around the world that are struggling. So this is a very interesting dance. Its somewhat different than what weve seen in the last few years. Im not at all surprised to see this causing confusion among investors. Then, again, getting different messages out of the fed like we did today from Stanley Fisher and jim bullard versus yesterdays minutes, this is all very confusing. By the way, just to interject. Stanley fisher, the new vice chair of the fed said today he put a time frame on the phrase considerable period of time. He said its anywhere from two months to one year. And you can imagine how much differently those comments could have moved markets against a different back drop here. The original clarification of six months created a big selloff over the summer before she walked that back. He now trying to expand it. Any time you put two months out there. Rick santelli, let me pick on a phrase kevin used. Island of improvement. Can the u. S. Remain this island of improvement if the Global Economy continues to weaken . Well, i think that investors can think that. I think theyre going to be in denial if they dont already know the answer. You know, super mario draghi has been demoted to a luigi plus. Im sorry. But when he made a Statement Today that we will do whatever it takes, im paraphrasing, the market is only interested in define we. I still say quantitative easing american style may not be something that mario draghi could pull off but it doesnt matter. And as to the minutes, my guests just nailed it. We all heard that meeting. What was the main center piece of the press conference in the minutes . Ill tell you what it was, about considerable period. I dont recall the Dollar Strength or the european weakness being a mainstay, but it was a mainstay in the headlines yesterday. I think the fact that the market whitewashed all of that shows that whats going on in europe, they have an export economy, we have a consumption economy so wheres the transmission . Think credits, think banks, think spanish, think italian yield. Think of their loan portfolios that glow in the dark and its a bit toxic and theres your transmission. Thats what we need to Pay Attention to. Keep watching the dax and the cac. It didnt hold the bounce. The dax is under 9,000. Watch how fast it takes to get to 75 bases points on that boom. I was going to ask you about that. For those who dont know, the ten year in germany hit an alltime low today. What was it, 89 . Or 83. 86. 86 but it popped back up a bit. So you think it goes to 75 and what does that do to our own ten year . How much lower . Were at 228 or 203 or something today. You know, i think u. S. Rates can continue to go down. I know leon cooperman was so smart today. He said historically rates need to look at 2 1 2 growth, add in the inflation. Thats where the ten year should be. Where would stocks be if we had a ten year 2 1 2 . I think well continue to spread against european rates, not one for one but if they go lower i certainly think well go lower. If equities go lower, i suspect u. S. Rates will go lower as well. Jim lowell, just a question as well. Rick, when i asked him if we could stay an island of improvement here, he said i think we already know the answer. Your answer seems to be yes in that youre behind the weakness because you say this has been a selloff of fear and not fundamentals. Why do you think the u. S. Economy can continue to hold up its momentum here . Well, well get a very good read not just in terms of rates of Earnings Growth but also guidance. That will be absolutely mission critical. Also, it is clear that the fed, like us, should be a little bit worried about a stronger dollar, strengthening dollar, its toll on the exports. We continue to look at the battleship ballot blue chip sheets. They have cash in the coiffeurs. This is a buying opportunity so long as the fundamentals hold for true longterm investors. For traders, this is a very different kind of marketplace where you really do have to trade amidst confusion. For longterm investors, this is the same scene that set the stage. Everybody stay right there. We have a treat for everybody. Youll love the closing bell exchange. Were going to extend it into the next segment because of whats going on. Were going to add one more person. Well add larry kudlow to the conversation coming up in a few minutes. All of that with 50 minutes to go. The dow near the low. Off 332 points on some pretty decent volume. The nasdaq is off almost 2 . Art cashman telling us 1925. 1929 is the level right now. Even a day like this cannot keep a good ipo down. Check out hub spot. It defied the downturn and it is trading 20 above its opening price today. Its an Online Marketing software company. The ceo will be joining us exclusively in just a few minutes. Also on the docket, a trio of heavy hitters. Hershey ceo and ragu rajan. Market reaction all ahead. Dont miss it. 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. Dad,thank you mom for said this oftprotecting my future. You. Thank you for being my hero and my dad. Military families are uniquely thankful for many things, the legacy of usaa Auto Insurance could be one of them. If youre a current or former military member or their family, get an Auto Insurance quote and see why 92 of our members plan to stay for life. I was out for a bike ride. I didnt think id have a heart attack. But i did. Im mike, and im very much alive. Now my doctor recommends a bayer aspirin regimen to help prevent another heart attack. Be sure to talk to your doctor before you begin an aspirin regimen. If youre just joining us here, if you wanted to see if yesterdays rally continued, the answer briefly, no. For various reasons. Down 318 points. The leader to the down side, down 2. 3 . I havent seen what the transports are doing. Theyre down 200 points as well. So minus signs very much across the board for the stock market today. On the same day that oil is selling off significantly. One of the weakest links of this entire space and continuing our special coverage of this massive market selloff. Larry kudlow joining us along with our closing bell exchange. Good to see you, larry. Earlier this week you were telling everybody, stop losing your heads. What do you make of this action . Not pretty. This is a great time to add to your 401 ks and iras and whatever accounts you have. Terrific time. There is no recession. There is no inflation. Energy prices are coming down. King dollar is nice and hefty and strong. All of thats a good sign. You saw unemployment claims this morning, jobless claims, what were they, 287,000. Right. Businesses are investing. All im saying is the fundamentals, corrections come and go. Octobers a pretty tricky month, i get that. Just ride it out. Add to your retirement account. But, larry, is this selloff about our economy or is it about the european economy . Is mario draghi signaling that hes pointing to member nations that they have to do their part to solve the problems on the continent right now . Isnt that partly to a good degree why were selling off and why were seeing yields continue lower on the ten year . You know, bill griffeth, all the years ive known you, let me just say the answer to your question is i dont know. Okay . I have no idea. Look so noted. Mario draghi is going to do whatever it takes to keep europe solvent. If that means pumping in more money and buying bonds no matter what the germans say, draghi should probably increase the money supply. Europe has a lot of other issues. They tax too much. They spend too much. They entitle too much. We could go on forever. Europe hasnt grown in two decades. Lets be honest. The more interesting question to me, our biggest export partners, i want to make this point, our biggest export partners are canada and mexico. Dont forget that. And a half at that trade is 1 3 of our total trade. And you know what, canada and mexico are doing pretty darn good. So, again, i dont know whats cooking today. I cant figure it out. Im glad you brought up the jobless claims stay with it. Peter respond here. Please tell us as well whether you think this is the right opportunity for people who might have been on the sidelines for the last leg higher to get involved. Well, you know, larry itemizes a lot of positive things, right . And i have to agree with him. Lets just take some of that stuff in a vacuum. If i told you, say, two or three years ago that by now we would be almost at the verge of declaring ourselves energy independent, we would think thats fantastic, right . And so the fact that Energy Prices are decreasing for some reason today we think thats a bearish statement. But if you isolate that, that is a very, very bullish statement on a number of levels, right . Youve got a tax on society, for instance. So that will be a decreased tax level and you also have independence from the other countries in terms of generating energy. So i think its all very positive. For some reason the market has taken a very negative tone on all these items hes mentioned. Because of central banks. The fed doesnt want a strong dollar. They dont want the average guy to be able to buy more. They dont like when prices go down. They are a central bank. Who are they working for . Banks. Thats why. Look, rick san it does not help their inflation expectations, larry. I want to get back to other panelists, when you have king dollar, you dont have the inflation rate that the fed wants to achieve right now. Good. Good. The down side to that. No, thats terrific. Larry, you dont want them to keep stimulating. Theyll keep the cheap money policy in place until they get it. Thats the wrong answer. I dont think so. By the way, i dont like what the fed says. I agree with my pal rick santelli. The fed, they look at labor market indicators, they think too many people working causes inflation. Thats really stupid. But you know what, ill give yellen some credit here, how about this for a first . She is ending qe and they are going to gradually and slowly raise Interest Rates next year. And that is exactly what they should do. If i had one wish in the entire world for the american economy, i would say slash the Corporate Tax rate which will give the fed cover to snuggle up their shortterm rates and normalize. By the way, the republicans are going to take the senate and theyre going to put a Corporate Tax cut on the president s desk early next year. Larry, it is i completely agree. It is absolutely unpatriotic, not that we are undergoing tax inversion, but the unpatriotic stems from having the highest Corporate Tax rate in the world. Right. We used to be at least lower than japan and thats no longer the case. Hold that thought. Thats where i think we are being unpatriotic. Hold that thought. No, thats a great thought. I think i just heard a Nobel Prize Winning thought. There you are. Lets bring it back to the individual investor. Kevin caron, is this an opportunity to buy or an opportunity to take some money off the table and take some profits if you have them . I think its an opportunity to buy but i think you want to be looking for very high quality stocks because if you think about whats happened in the last two years, this market has roared ahead relentlessly. Its been led by lower quality, high beta stocks. You add selectively to Great Companies with fantastic balance sheets, consistent profitability, reasonable price, all that stuff is good. Keep in mind, the market is only down Something Like 4 from the peak. Most of the data is moving in the right direction. This is why were fundamentally bullish. Were tilted more towards equities. I would look at price and look very closely at quality of the holdings in the portfolio. More investment is coming. Thats a very positive thing for the future. Can i make just one quick stock market math real quick. At 120 a share youre at 16 times earnings, all right . Thats not ultra cheap but its not very expensive. At 16 times earnings your forward earnings yield is about 6 1 4 . Thats a v