Transcripts For CNBC Closing Bell 20150918 : vimarsana.com

Below 45 a barrel. A design of 4. 13 . Energy the least well werg sector. Also its a quadruple expiration day. That will put more pressure as art cashin has mentioned. Utilities are holding in decently, one sector not getting crushed as investors do hunt for yield and safety. Is now the time to jump into the beaten down sector . Its down 10 this year. We will hear from both sides coming snup thats one we keep looking to when the market goes lower utilities somehow hang in there as a defensive play of some kind. Plus could apples bottom line get a boost next quarter because of a calendar shift . One wall street firm thinks so. We have details on that story plus much more regarding apple coming snup lets get more on this sell off with our man on the floor at the stock exchange. Bob pisani, happy friday. Thank you. A long one but quadruple witching. Slower Global Growth, look at the Global Industry names, ingersollrand, flur, couple minutes, the big truer manufacturer, everything is down 3 to 4 on fairly large volume. Also we have Interest Rates lower, thats impacting banks. A lot of people were buying regional banks, bb t, bank of hawaii, all these down 3 as Interest Rates have moved down in the last couple days. People realizing the fed is not going to be raising rates. Finally oil down 4 . You can see all the big exploration and production names these e and p names are directly levered to the price of oil. Oil down 4 . Anadarco down 4 . Were waiting for the market on close orders to start coming in in a big way, they have just started rolling in slight sell side, volume is very big now, 900 million to the sell side but this could change a lot. We will keep an eye on this. If i see anything important on that market on close expiration orders i will give you a shout out. Art cashin will join us as we go into that critical last half hour before exploration. We will get his gauge on how things look before the close. Joining us for our Closing Bell Exchange this friday cnbc market analyst kenny pacari, ron mullen camp back with us and Rick Santelli joins us once again from chicago. Kenny, what is that song youve been humming to yourself you had a day. Quando, like again, again, again are we going to finally get the fed to make this move that they keep let thing to move. What do you make this have sell off . Related just to the expiration or is it possible that markets disappointed that the fed didnt raise rates . I think the market is very disappointed. Its been primed, expecting it, i think they have suggested that they missed their opportunity two, three, four times earlier in the year and now they built it up that it was going to happen in september and boom all of a sudden now were being held hostage by emerging markets and people are frustrated, when they think about that theyre scratching their head and showing their displeasure today. Ron, if rates arent going higher, you know, certainly for now what do you think investors should be holding here . It gets tough all the way through. Ive kind of given up on the fed. I thought what they were doing was meant to be an emergency thing, when the emergency was over theyd step out, but after six years you start to wonder they are now looking for excuse toss keep Interest Rates low, some with the belief that what hasnt worked in six years is there work in the next six months to a yeemplt its easy to find Good Companies, its hard to find Good Companies that are cheap. When you look at a 2 growth and this year growth Revenue Growth is running about 0, Earnings Growth they are still squeezing a little bit out. Theyve squeezed as much as they can. Its getting tougher. What about those names that bob pisani was mention thing that are taking it on the chin like ingersollrand down 3 on a session like this, are names like those cheap and attractive enough to you or are you talk being other parts of the market . Pretty much across. I dont think you can read much into today, you just gave the whole litany of things that are hitting the short term stuff. My fear is that the fed which is a longterm proposition and frankly our congress, everybody reads the short term stuff in the market because we measure defer day. The easiest way to lower the volatility is dont price things so often. I shouldnt be i shouldnt be saying this to you because you guys are on the air every day. We can take half hour auctions, 9 30, 10 00, 10 30, 11 00. But the point is most days dont mean very much. We have longterm problems and we are worried about short term responses to it. I think thats a selfdefeating proposition. Were longterm investors but short term reporters. The beast must be fed every day. I will accept that. I will accept that. Rick, you got any Water Bottles left after yesterday . What does the market do now . This is like weds an election, we were waiting for the results and nothing happened. Nobody got elected. So now what does the market do here . Well, i dont think its at all like an election. An election you know hot candidates r you know who gets the biggest number wins and the person who wins takes office. When it comes to the fed its the data, no, its not the da at that, its the Global Economy china maybe not canada, its not about how much you export or import its about Systemic Risk but were worried about all of that with china, but by the way, the economy is doing pretty well and unemployment is improving. See, the problem is we are now having a growing issue or confidence is going square. Okay . There was a lack of confidence in general about 2 growth but its still better than much of the growth throughout the world except for of course china where the glide path is more important. Now we have a bigger lack of confidence on the Federal Reserve itself. They obviously missed an opportunity, im not so sure that they would have said, listen, if we dont do this i am sure we will see a 300 point drop in the Dow Jones Industrial average and even if the dow was up today all of us would probably have some pretty good reasons why which brings me to my final point, they have made the economy like one of those snow globes, you shake it up and all those white snowflakes move around. Where were they going, the snowflak snowflakes, where did they start . Who knows. The markets are shaken up a little bit. Im not sure the activity today are giving us the clues as to where it will be a week from today. Looking at Interest Rates here if the fed didnt move and they should have according to the market that would mean they are falling behind the curve. That would mean the 10 year, 30 year would be rising because they think more inflation is on the way. Why . No. No. No. The fed didnt move and Interest Rates are going lower so they can hardly in fact, they would want people to lose confidence if it means they start to think inflation might be going up. They probably would want us to have less confidence to see rates go down. Thats how little understanding they seem to demonstrate about how the markets move and the fact that they shouldnt Pay Attention to the short term as our guest ron said. Is there anybody looking at the one year, two year, three year, five year pictures other than their dots which are worthless . I dont think so. And when it comes to all the treasuries that they havent quarantined or the ones in europe that nobody knows where they are at how do you think youre ever going to get whats left to price a market. Meanwhile, on wednesday the Census Bureau said the Median Household Income is below where it was when the recession ended six years ago, thats what the fed should be working on. Okay. Ken, before we hit the close here we have this expiration. What do you expect to happen over the next 45 minutes or so . Listen, i think the early indications is that the stock is unbalanced. The xpri ends up pairing off. What youre worried about and what youre going to see today is there is going to be an imbalance for sale thats going to stay there and people will take advantage of that so i expect the market to close closer to the lows than not. All right. And volume is heavier today because of all of this. And thats the only reason. Dont look at this volume and think its a catalyst of a mindset its a change in psyche. It isnt at all. Its a result of the quad witch. Ron, can you give us one name youre buying . I cant. Were not finished with it. One sector . One area . Housing looks sort of interesting. All right. And one of thieves days we will get a longterm rebound in energy. Whats happening in energy is great for the economy it just squeezes the producers. Thank you. Just wanted somebody for everybody to hang their hat on. Thanks for being here this afternoon. Volkswagen is being told to recall nearly half a million vehicles over emissions software. Fill low bow stepping in with that story for us. This is one of those stories that has people saying they did what . What are they accused of doing . Basically the epa says volkswagen put software in 482000 vehicles that allowed those vehicles to pass clean air tests even though they were actually violating those tests. Essentially this software circumvented the air test and according to the epa the potential fine here could be up to 18 billion remember there is no cap on some of these fines when you are talk being the epa as there is with nhtsa. The epa says 482000 volkswagen models are impacted. Here are the models, diesel models, 2009 to 2015 are the primary models for the jet at that, beetle, audi a 3 and gulf and the 2014 and 2015 vw pass sat. We reached out to volkswagen to get a comment regarding this allegation from the epa which the epa says voluntarily wagon has admitted to. They say they are cooperating with the investigation and are unable to comment further at this time. This is not the kind of news that will help. Guys, they do have to fix these cars eventually but in the meantime people are allowed to continue driving them. My favorite part of this story, guys, is the fact that it was researchers, college researchers at the university of West Virginia who discovered this software on the vehicles. Oh, my goodness. Love that. This is a trend, you know that is correct we talk about not just in the Automotive Industry but Banking Industry when there are investigations like this and question then becomes why doesnt anybody go to jail for this . This is fraud that they are doing. I mean, this is not for you to answer, per se, phil, this is for us to ask prosecutors, but you wonder why companies are able to just skate by, maybe they will pay a penalty but right now all we know they have to recall these cars. Correct. And bill, you heard the press conference yesterday with paraha in new york and general motors, a lot of questions about why there was not individual prosecution regarding the switching. They said we want to know where the individual charges are. As the doj reiterates it will try to go after individuals and not the companies for wrongdoing. Quando, quando, quando. Thank you very much, phil, phil lebeau with the latest on that story. 45 minutes to go here, a little bit off the session lows but a weak day, the dow down 268, its s p 28, the nasdaq 57 today. The no news is good news for the utilities second for again, but is it too late to plug into these dividend paying stocks and how long could this post fed surge last . Dont miss our bull bear debate on utilities coming newspaper a moment here. Also ahead, apples mobile operating system leaving some customers hanging. We will discuss that plus a top apple pro describes how to make money from a calendar change and the tech giants accounting. More closing bell right after this. So youre a Small Business expert from at t . Yeah, give me a problem and ive got the solution. Well, we have 30 years of customer records. Our cloud can keep them safe and accessible anywhere. My drivers dont have time to fill out forms. Tablets. Keep it all digital. Were looking to double our deliveries. Our fleet apps will find the fastest route. Oh, and your boysenberry apple scones smell about done. Ahh, youre good. I like to bake. Add new Business Services with at t and get up to 500 in total savings. This just in 50 million customers data was not compromised this morning in a Security Breach that didnt happen. Wall street. Not rattled. At all. No. Not at all. Not at all. I mean, look at the day. Sir. Sir. What went right . What went right . Everything. Thank you. With threat intelligence, behavioral analytics, and 6000 experts, ibm security will help keep you out of the news. My dads company wasnt hacked today. Cool. Excellent looking below the surface, researching a hunch. And making a decision you are type e. Time for a change of menu. Research and invest from any website. With e trades browser trading. E trade. Opportunity is everywhere. Minus signs on this expiration day with the dow down 273 points, we look at the ten sectors that make up the s p 500 index, the worst performing sector today is energy, we will get to that in a second. The best performing or the least negative, i guess now would be the utilities. Thats right. Only down by about. 3 of 1 . Oiling hitting the skids. Jackie dee lang police giving up all those gains from wednesday. It really was another wild day, near 5 loss to the down side, wti finishing at 44. 68 and as bill said when he opened the show its one of those take your pick for why this happened today. First would be of course the expiration, certainly could contribute to the volatility, but also weve seen this pattern of wild swings for the last three or four weeks so traders werent shocked by t the third issue of course the fed not hiking rates could really be supportive or bullish for crude prices because of the impact on the dollar but at the same time the cautious tone that the fed took, worried about the Global Economy, worried about china really concerned crude traders when it comes to demand. They have to look at that piece of picture. When we look forward to next week traders telling me it could be anybodys guess. Seasonally we do expect to see builds of inventory at this time but weve been seeing drauns. If you get a steep draw on wednesday you could see these prices spike back up. The fact we closed under 45 traders were not committed to being long on oil into the weekend. We will see you later. One sector that marngs to avoid getting crushed in the bake wake this have no decision by the fed would be the utilities. We showed sthaerl yer. That sector showed a brief rally in morning, but it is fading into the close right now. For more on if you should buy the utilities here lets bring in greg gordon head of power utilities, hes barryish. David burks and he is bullish. Utilities are down even notwithstanding the 3 move they have had this week in the wake of the fed decision or no decision. Theyre down 7 year to date so bagging the market. I look at several valuation metrics, i look at the way theyre trading versus the s p 500, theyre trading at around one times the s p 500 on a one year forward multiple, but more importantly they dont screen cheap to the bond market. One of the interesting things thats been happening this year is the spread between high grade Corporate Bonds and treasuries has widened to over 330 basis points. My observation is in periods like this utilities tend to track closer to corporates than treasuries and my Corporate Bond model that screen a little bit expense he have. I expect them to trade defensively but they dont screen cheap on valuation. David, you heard that. Why do you like the utilities. Bill, we like them for the same reasons we have always liked them. They provide consistent Earnings Growth, more utilities grow their earnings 4 to 5 a year. Dividend yields, the average yield on electrics is 4. 1 and most utilities are growing their earnings 2 to 4 dr or growing their dividend 2 to 4 annually. Sure, we may be on the cusp of a rising Interest Rate environment but in two of the last three Interest Rate sierkless where rates have risen that the utilities have actually outperformed this in p 500. After they started to raise rates, david . That is correct. From mid 2004 through mid 2006 the fed raised rates 16 times from a fed rate of 1 all the way up to 5 and yet after that twoyear period the electrics had risen some 35 versus 12 for the s p 500. We are not saying hi yer rates would result in higher utility prices but what we are saying a higher rates dont automatically mean lower utility prices either. Greg, you laid out the valuations in the utilities but we can all remember the day when at t was a company that people would just buy and sock away because of the dividend that it paid and an awful lot of people still do the same thing with utility stocks now, they dont worry about the business cycle, they dont worry about valuations, they want that dividend. Is there something wrong with hanging on to a dividend even through this period here because of that is correct a utility stock . No, absolutely not. Now, i would actually agree with the point that there is no Empirical Data that shows utilities underperform once the fed starts to raise rates but there is data that shows that utilities tend to underperform as you approach the first fed rate hike which is several months away. That combined with the current valuation makes me concerned if you are building a new position in utilities today you could face significant multiple contraction and one milt im point lower on a pe is 8 on price, could you lose a couple years worth of dividends if you buy them wrong. Right now given their valuations you need to be careful. There are certainly stocks within the group that i like, like eix, pinnacle west, ppl and exelon. I think you need to be selective. David, i was going to ask you the same question, not all utilities are created equal, some even have significant real estate investments, for example. Who specifically do you like here . For Global Growth<\/a>, look at the Global Industry<\/a> names, ingersollrand, flur, couple minutes, the big truer manufacturer, everything is down 3 to 4 on fairly large volume. Also we have Interest Rates<\/a> lower, thats impacting banks. A lot of people were buying regional banks, bb t, bank of hawaii, all these down 3 as Interest Rates<\/a> have moved down in the last couple days. People realizing the fed is not going to be raising rates. Finally oil down 4 . You can see all the big exploration and production names these e and p names are directly levered to the price of oil. Oil down 4 . Anadarco down 4 . Were waiting for the market on close orders to start coming in in a big way, they have just started rolling in slight sell side, volume is very big now, 900 million to the sell side but this could change a lot. We will keep an eye on this. If i see anything important on that market on close expiration orders i will give you a shout out. Art cashin will join us as we go into that critical last half hour before exploration. We will get his gauge on how things look before the close. Joining us for our Closing Bell Exchange<\/a> this friday cnbc market analyst kenny pacari, ron mullen camp back with us and Rick Santelli<\/a> joins us once again from chicago. Kenny, what is that song youve been humming to yourself you had a day. Quando, like again, again, again are we going to finally get the fed to make this move that they keep let thing to move. What do you make this have sell off . Related just to the expiration or is it possible that markets disappointed that the fed didnt raise rates . I think the market is very disappointed. Its been primed, expecting it, i think they have suggested that they missed their opportunity two, three, four times earlier in the year and now they built it up that it was going to happen in september and boom all of a sudden now were being held hostage by emerging markets and people are frustrated, when they think about that theyre scratching their head and showing their displeasure today. Ron, if rates arent going higher, you know, certainly for now what do you think investors should be holding here . It gets tough all the way through. Ive kind of given up on the fed. I thought what they were doing was meant to be an emergency thing, when the emergency was over theyd step out, but after six years you start to wonder they are now looking for excuse toss keep Interest Rates<\/a> low, some with the belief that what hasnt worked in six years is there work in the next six months to a yeemplt its easy to find Good Companies<\/a>, its hard to find Good Companies<\/a> that are cheap. When you look at a 2 growth and this year growth Revenue Growth<\/a> is running about 0, Earnings Growth<\/a> they are still squeezing a little bit out. Theyve squeezed as much as they can. Its getting tougher. What about those names that bob pisani was mention thing that are taking it on the chin like ingersollrand down 3 on a session like this, are names like those cheap and attractive enough to you or are you talk being other parts of the market . Pretty much across. I dont think you can read much into today, you just gave the whole litany of things that are hitting the short term stuff. My fear is that the fed which is a longterm proposition and frankly our congress, everybody reads the short term stuff in the market because we measure defer day. The easiest way to lower the volatility is dont price things so often. I shouldnt be i shouldnt be saying this to you because you guys are on the air every day. We can take half hour auctions, 9 30, 10 00, 10 30, 11 00. But the point is most days dont mean very much. We have longterm problems and we are worried about short term responses to it. I think thats a selfdefeating proposition. Were longterm investors but short term reporters. The beast must be fed every day. I will accept that. I will accept that. Rick, you got any Water Bottles<\/a> left after yesterday . What does the market do now . This is like weds an election, we were waiting for the results and nothing happened. Nobody got elected. So now what does the market do here . Well, i dont think its at all like an election. An election you know hot candidates r you know who gets the biggest number wins and the person who wins takes office. When it comes to the fed its the data, no, its not the da at that, its the Global Economy<\/a> china maybe not canada, its not about how much you export or import its about Systemic Risk<\/a> but were worried about all of that with china, but by the way, the economy is doing pretty well and unemployment is improving. See, the problem is we are now having a growing issue or confidence is going square. Okay . There was a lack of confidence in general about 2 growth but its still better than much of the growth throughout the world except for of course china where the glide path is more important. Now we have a bigger lack of confidence on the Federal Reserve<\/a> itself. They obviously missed an opportunity, im not so sure that they would have said, listen, if we dont do this i am sure we will see a 300 point drop in the Dow Jones Industrial<\/a> average and even if the dow was up today all of us would probably have some pretty good reasons why which brings me to my final point, they have made the economy like one of those snow globes, you shake it up and all those white snowflakes move around. Where were they going, the snowflak snowflakes, where did they start . Who knows. The markets are shaken up a little bit. Im not sure the activity today are giving us the clues as to where it will be a week from today. Looking at Interest Rates<\/a> here if the fed didnt move and they should have according to the market that would mean they are falling behind the curve. That would mean the 10 year, 30 year would be rising because they think more inflation is on the way. Why . No. No. No. The fed didnt move and Interest Rates<\/a> are going lower so they can hardly in fact, they would want people to lose confidence if it means they start to think inflation might be going up. They probably would want us to have less confidence to see rates go down. Thats how little understanding they seem to demonstrate about how the markets move and the fact that they shouldnt Pay Attention<\/a> to the short term as our guest ron said. Is there anybody looking at the one year, two year, three year, five year pictures other than their dots which are worthless . I dont think so. And when it comes to all the treasuries that they havent quarantined or the ones in europe that nobody knows where they are at how do you think youre ever going to get whats left to price a market. Meanwhile, on wednesday the Census Bureau<\/a> said the Median Household Income<\/a> is below where it was when the recession ended six years ago, thats what the fed should be working on. Okay. Ken, before we hit the close here we have this expiration. What do you expect to happen over the next 45 minutes or so . Listen, i think the early indications is that the stock is unbalanced. The xpri ends up pairing off. What youre worried about and what youre going to see today is there is going to be an imbalance for sale thats going to stay there and people will take advantage of that so i expect the market to close closer to the lows than not. All right. And volume is heavier today because of all of this. And thats the only reason. Dont look at this volume and think its a catalyst of a mindset its a change in psyche. It isnt at all. Its a result of the quad witch. Ron, can you give us one name youre buying . I cant. Were not finished with it. One sector . One area . Housing looks sort of interesting. All right. And one of thieves days we will get a longterm rebound in energy. Whats happening in energy is great for the economy it just squeezes the producers. Thank you. Just wanted somebody for everybody to hang their hat on. Thanks for being here this afternoon. Volkswagen is being told to recall nearly half a million vehicles over emissions software. Fill low bow stepping in with that story for us. This is one of those stories that has people saying they did what . What are they accused of doing . Basically the epa says volkswagen put software in 482000 vehicles that allowed those vehicles to pass clean air tests even though they were actually violating those tests. Essentially this software circumvented the air test and according to the epa the potential fine here could be up to 18 billion remember there is no cap on some of these fines when you are talk being the epa as there is with nhtsa. The epa says 482000 volkswagen models are impacted. Here are the models, diesel models, 2009 to 2015 are the primary models for the jet at that, beetle, audi a 3 and gulf and the 2014 and 2015 vw pass sat. We reached out to volkswagen to get a comment regarding this allegation from the epa which the epa says voluntarily wagon has admitted to. They say they are cooperating with the investigation and are unable to comment further at this time. This is not the kind of news that will help. Guys, they do have to fix these cars eventually but in the meantime people are allowed to continue driving them. My favorite part of this story, guys, is the fact that it was researchers, college researchers at the university of West Virginia<\/a> who discovered this software on the vehicles. Oh, my goodness. Love that. This is a trend, you know that is correct we talk about not just in the Automotive Industry<\/a> but Banking Industry<\/a> when there are investigations like this and question then becomes why doesnt anybody go to jail for this . This is fraud that they are doing. I mean, this is not for you to answer, per se, phil, this is for us to ask prosecutors, but you wonder why companies are able to just skate by, maybe they will pay a penalty but right now all we know they have to recall these cars. Correct. And bill, you heard the press conference yesterday with paraha in new york and general motors, a lot of questions about why there was not individual prosecution regarding the switching. They said we want to know where the individual charges are. As the doj reiterates it will try to go after individuals and not the companies for wrongdoing. Quando, quando, quando. Thank you very much, phil, phil lebeau with the latest on that story. 45 minutes to go here, a little bit off the session lows but a weak day, the dow down 268, its s p 28, the nasdaq 57 today. The no news is good news for the utilities second for again, but is it too late to plug into these dividend paying stocks and how long could this post fed surge last . Dont miss our bull bear debate on utilities coming newspaper a moment here. Also ahead, apples mobile operating system leaving some customers hanging. We will discuss that plus a top apple pro describes how to make money from a calendar change and the tech giants accounting. More closing bell right after this. So youre a Small Business<\/a> expert from at t . Yeah, give me a problem and ive got the solution. Well, we have 30 years of customer records. Our cloud can keep them safe and accessible anywhere. My drivers dont have time to fill out forms. Tablets. Keep it all digital. Were looking to double our deliveries. Our fleet apps will find the fastest route. Oh, and your boysenberry apple scones smell about done. Ahh, youre good. I like to bake. Add new Business Services<\/a> with at t and get up to 500 in total savings. This just in 50 million customers data was not compromised this morning in a Security Breach<\/a> that didnt happen. Wall street. Not rattled. At all. No. Not at all. Not at all. I mean, look at the day. Sir. Sir. What went right . What went right . Everything. Thank you. With threat intelligence, behavioral analytics, and 6000 experts, ibm security will help keep you out of the news. My dads company wasnt hacked today. Cool. Excellent looking below the surface, researching a hunch. And making a decision you are type e. Time for a change of menu. Research and invest from any website. With e trades browser trading. E trade. Opportunity is everywhere. Minus signs on this expiration day with the dow down 273 points, we look at the ten sectors that make up the s p 500 index, the worst performing sector today is energy, we will get to that in a second. The best performing or the least negative, i guess now would be the utilities. Thats right. Only down by about. 3 of 1 . Oiling hitting the skids. Jackie dee lang police giving up all those gains from wednesday. It really was another wild day, near 5 loss to the down side, wti finishing at 44. 68 and as bill said when he opened the show its one of those take your pick for why this happened today. First would be of course the expiration, certainly could contribute to the volatility, but also weve seen this pattern of wild swings for the last three or four weeks so traders werent shocked by t the third issue of course the fed not hiking rates could really be supportive or bullish for crude prices because of the impact on the dollar but at the same time the cautious tone that the fed took, worried about the Global Economy<\/a>, worried about china really concerned crude traders when it comes to demand. They have to look at that piece of picture. When we look forward to next week traders telling me it could be anybodys guess. Seasonally we do expect to see builds of inventory at this time but weve been seeing drauns. If you get a steep draw on wednesday you could see these prices spike back up. The fact we closed under 45 traders were not committed to being long on oil into the weekend. We will see you later. One sector that marngs to avoid getting crushed in the bake wake this have no decision by the fed would be the utilities. We showed sthaerl yer. That sector showed a brief rally in morning, but it is fading into the close right now. For more on if you should buy the utilities here lets bring in greg gordon head of power utilities, hes barryish. David burks and he is bullish. Utilities are down even notwithstanding the 3 move they have had this week in the wake of the fed decision or no decision. Theyre down 7 year to date so bagging the market. I look at several valuation metrics, i look at the way theyre trading versus the s p 500, theyre trading at around one times the s p 500 on a one year forward multiple, but more importantly they dont screen cheap to the bond market. One of the interesting things thats been happening this year is the spread between high grade Corporate Bonds<\/a> and treasuries has widened to over 330 basis points. My observation is in periods like this utilities tend to track closer to corporates than treasuries and my Corporate Bond<\/a> model that screen a little bit expense he have. I expect them to trade defensively but they dont screen cheap on valuation. David, you heard that. Why do you like the utilities. Bill, we like them for the same reasons we have always liked them. They provide consistent Earnings Growth<\/a>, more utilities grow their earnings 4 to 5 a year. Dividend yields, the average yield on electrics is 4. 1 and most utilities are growing their earnings 2 to 4 dr or growing their dividend 2 to 4 annually. Sure, we may be on the cusp of a rising Interest Rate<\/a> environment but in two of the last three Interest Rate<\/a> sierkless where rates have risen that the utilities have actually outperformed this in p 500. After they started to raise rates, david . That is correct. From mid 2004 through mid 2006 the fed raised rates 16 times from a fed rate of 1 all the way up to 5 and yet after that twoyear period the electrics had risen some 35 versus 12 for the s p 500. We are not saying hi yer rates would result in higher utility prices but what we are saying a higher rates dont automatically mean lower utility prices either. Greg, you laid out the valuations in the utilities but we can all remember the day when at t was a company that people would just buy and sock away because of the dividend that it paid and an awful lot of people still do the same thing with utility stocks now, they dont worry about the business cycle, they dont worry about valuations, they want that dividend. Is there something wrong with hanging on to a dividend even through this period here because of that is correct a utility stock . No, absolutely not. Now, i would actually agree with the point that there is no Empirical Data<\/a> that shows utilities underperform once the fed starts to raise rates but there is data that shows that utilities tend to underperform as you approach the first fed rate hike which is several months away. That combined with the current valuation makes me concerned if you are building a new position in utilities today you could face significant multiple contraction and one milt im point lower on a pe is 8 on price, could you lose a couple years worth of dividends if you buy them wrong. Right now given their valuations you need to be careful. There are certainly stocks within the group that i like, like eix, pinnacle west, ppl and exelon. I think you need to be selective. David, i was going to ask you the same question, not all utilities are created equal, some even have significant real estate investments, for example. Who specifically do you like here . For Growth Investors<\/a> we like next year energy, its the largest generator of wind and solar earnings, we also like cms energy energy, a michigan based electric utility where earnings are expected to grow 5 to 7 annually and we also like ppl cooperation a large utility with u. S. And u. K. Operation that is has nearly a 5 yooer yield and 4 to 6 growth rate. Our bull and bear like the same things. Thats interesting. Thank you for joining us today. Thank you. Thank you, bill. 38 minutes left in the trading session here. It is an expiration day, whether thats having the biggest impact on this sell off, we dont know well, now we are down 300 points on the dou industrial average, that is the low of the session. We have established there is a sell side bias going into the close. And that quadruple on higher volume. Up next a top apple analyst explains how a calendar change in a tech giants accounting could create a december to remember for investors. Still to come, stock picks from two very different points of view, a market technician takes on a pro focusing on the fundamentals in this post fed environment. Stay tunld. I could get used to this. Now you can, with the luxuriously transformed 2016 lexus es and es hybrid. Awe believe active management can protect capital long term. Active management can tap global insights. Active management can take calculated risks. Active management can seek to outperform. Because active Investment Management<\/a> isnt reactive. Its active. Thats the power of active management. Which means you can watch movies while youre on the move. Sitcoms, while you sit on those. And even fargo, in fargo binge, while you lose weight and enjoy a good cliffhanger while you hang from a. Why am i yelling . The revolution will not only be televised. The revolution will be mobilized. Introducing the all in one plan. Only from directv and at t. Hi mim raph. Tom. My name is anne. Im one of the real live attorneys you can talk to through legalzoom. Dont let unanswered legal questions hold you up, because were here, were here, and weve got your back. Legalzoom. Legal help is here. It took Joel Silverman<\/a> years to become a master dog trainer. But only a few commands to master depositing checks at chase atms. Technology designed for you. So you can easily master the way you bank. Welcome back. The dow was just briefly down more than 300 points, its now down 295. Meanwhile, were looking at other commodities, too. Gold, silver, copper, but declines of 1. 8 , about 1. 5 across the other major averages today, too. Im going to show you the wires. We cant hear ourselves right now. Yes. I dont know if you need to fix that. There we are with gold up 19 today, higher as it was yesterday. Lets look at some movers in the stock market right now. Ken ross gold is up after cutting its full year Capital Spending<\/a> and overhead cost estimates. The canadian minor also raising the lower end of its Production Outlook<\/a> and la queen at that holdings is slumping after the resignation of wayne goldberg, the hotel chain cut its full year growth forecast siting week demand. Cfo keith klein has been named the interim ceo. Apple off the lows of the day. Reports citing the latest ios 9 Software Update<\/a> has been causing the phones to crash, but expecting a boost in iphone shipments next quarter. Joining us to break it down is don shimeles ski from rico. Hoyer you . Lets begin with the bad news and maybe the good news. The trouble with some of those upgrades is that reportedly theyre causing problems for users. How widespread a problem does this appear to be . That was a good question that i began to investigate this morning. Do you remember last year when apple offered its last update to its mobile software, mobile operating system that was a complete disaster. In a week they issued a Software Patch<\/a> that took 40,000 phones off of the sell lar network. That was a catastrophe, had more bugs than any recent Software Update<\/a> to we have been watching for this moment closely. Apple has taken a lot of steps to make sure that this time its operating system was as glitch free as possible. So as of july theyve had a million users banging on the software to make sure that soft of the early problems were resolved by the time the software was more broadly available which became on wednesday. There were a handful of these tweets from people saying, oh, im having problems with my phone, but the problem really doesnt appear to be widespread. But you couple that with the fact that they had to delay the release of the os 2 operating system for the apple watch because they found happily they found the bug before the release, but still trying to work on that. It brings up how complicated toss release a new operating system to the masses out through. Think about how many devices there are out there, millions of these devices and based on third Party Metrics<\/a> that were seeing this morning roughly 20 of all of the iphone users worldwide have already updated upgraded to this software. You can see how many numbers were dealing with. So its sort of impossible to execute anything flawlessly, but this one doesnt seem to be a widespread problem based on what we are seeing. Why do you think that the timing of apples calendar year could help their december quarter . Theres been an interesting shift in the timing of the availability of its new iphone 6s. So rather than some of the initial sales, those first day sales or the initial sales falling in the September Quarter<\/a> that will be passed shortly, more sales about an estimated 2 to 2. 5 million more sales will fall in that all important december quarter. Thats apples first fiscal quarter and its important, its usually apples strongest quarter and its the one that analysts are going to be watching very closely because theyre trying to gauge whether apple is able to sustain the tremendous momentum it had last year with its introduction of the iphone 6. They will be interested to see if apple can top the record numbers it posted last year. Right. So thats why this is important. But i think analysts can count, too, isnt this more accounting hocuspocus than anything . Fair point. They will be looking at the bottom line numbers and up or down, right . I would think so. They do, by the way, have many more well, a couple more countries, but notably china involved in the launch this time around. As you know china accounts for roughly 20 of its sales and that would substantially boost one would guess preorders. Last week apple had recorded that it had exceeded its record preorders from last year and china is clearly a contributor there. Dawn, thank you for joining us. Thank you. Could be a boone for apple as we move past this upgrade which i know you have not done yet. I almost pulled the trigger last night and im kind of glad i didnt. I will at some point. Lets get to a cnbc news update with sue herrera. Defense officials tell nbc news later today the white house will announce the nomination of eric fanning to be the next secretary of the army f approved he would be the First Openly Gay Service<\/a> secretary. There is a report Prominent Democratic Party<\/a> fund rafrz have begun circulating a letter encouraging Vice President<\/a> joe biden to run for president. They reportedly call the obama biden a spectacular success and say if he runs they will be all in. They are mostly party financees who have yet to support Hillary Clinton<\/a>. Taco bell saying no mas to their upscale eatery. They closed the upscale eatery after just one year. And fans of the who are left saying what y. . The band announced today that it is postponing all 50 dates of its north american tour because lead singer roger doll tree has meningitis. It will be rescheduled for next spring. We wish him a speedy recovery. Thats nothing to mess around with. Its not. It absolutely is not. Pay attention to your doctor, roger. We want you back. Thats right. Thanks, guys. 30 minutes to go here, the dow down almost 300 points, 292, the s p down 31, nasdaq 65 and oil under a lot of pressure today. When we come back art cashin is going to tell us what hes watching in this find most important half hour. Plus techniqcals versus firsthand amountless. We will get stock pricks pics from two pros. Equals great rates. Ics from pros. Its a fact. Kind of like mute buttons equal danger. That sound good . Not being on this phone call sounds good. Its not muted. Was that you jason . It was geoffrey it was jason. It couldve been brenda. At ally bank no branches equals great rates. Its a fact. Kind of like shopping hungry equals overshopping. We were down 300 a moment ago. As you see that is the hardest hit of the major averages right now with the s p down 1. 6 , the nasdaq down almost 1. 4 . Of the s p 500 all 500 stocks there they are you can lets lets see, you have to count them on three hands, three and a half hands to see plus signs, the rest of them are minus. As we go into this final critical last half hour the trading session joining me is the man himself art cashin, director of floor operations for uvs. The bias is to the sell side. No question about t the lucky thing is it is not terribly broad, its about 55 of the orders are to sell. That having been said its a pretty big expiration. A few moments ago we had almost 2 billion to sell on balance, thats pairing off a little and thats why we are holding and not going lower. If in fact it had been Something Like<\/a> 80 to sell we would be down double where we are now. What do you expect to happen then in these final minutes of trading here . I think if we can minute to pair it off they will try to hold them and maybe lift off a little bit. I dont think theres going to be anything too, too big here. Next week japan is closed until thursday so we have a lot of surprises and weve got to begin to see how the rest of the world plays out here and whats going to happen with oil. Thats a critical question all over again. 45 is sort of a critical level for that. Breaks down through 45 Technical Analyst<\/a> dan fitzpatrick. Good to have you both here. Dan, starting with you if you look at the charts what do they tell you . More down side ahead. I hate to rain on everybodys parade but bottoms dont start at the top. We had a multiyear uptrend, its been consolidating for most of the year, thats broken if you just look at the s p. I was actually on power lunch on the 231st of last month and i had a down side price target of 1910. Weve consolidated since then. The way the market is trading today im kind of looking at the next leg down as being 1,800. 1,800. 1,800 on the s p. Not tomorrow, not next week, not a big crash. But whats the upside from here . Why would somebody come in and buy . I just dont see t im not generally a bear but im objective and thats what i see. And im still working on the line bottoms dont start at the top. I love that. They dont. Mark luccini, fundamentally what now . Now that we have the fed sitting on its hands what an investor to do here, do you think . One, recognize thought fed did yesterday was insert more uncertainty into the market which is going to bring more volatility, bill. In our view thats why we want to use this opportunity to wade into higher quality, higher yielding names in areas in which we have conviction. One is consumer facing areas like discretionary and staple, the other is healthcare, one of the very few sectors that has any Pricing Power<\/a> whatsoever. Stocks like mcdonalds, walmart and pfizer are three that we like particularly because the yield is above 3 with pfizer and mcdonalds around 3. 5. Thats attractive and give you some support if we do dip lower which i think is probably something we are likely to see. Mark, even from a fundamental point of view you think more market weakness is ahead . Kelly, i do because all janet yellen did yesterday was tee up everybody has to watch whats going on on the other side of the world. Even if china begins to do something more aggressively than what its already done, whatever they do their reaction function is going to act with a lag. We could be well into 2016 before the fed seems more fully prepared to raise Interest Rates<\/a> which is going to leave the cloud of uncertainty over the markets for some time. Dan, i dont know how much credence you give the vix, but its been coming down lately after all the volatility we saw in august. Whats that telling you right now . Yeah, the vix frankly doesnt tell me a whole lot just because lately the advent of all these inverse etfs theres other ways to trade that, but i do look at it and, yeah, the vix is coming down, but i dont think its really that big a deal. Frankly i think you just have to stick with stocks that are working and that is stocks that have not been impacted so much by the volatility in the market. That tells you that they are working. Stocks like amazon and pay come both of them are near all time highs and fit bit, for example, that has stopped being sold into on good news. So they are two totally different pictures but thats what im looking at here. Go with relative strength obviously. Yeah, go with relative strength. And look at the news flow. Look at the news flow. If we have bad news and the stock goes up imagine whats going to happen when we have good news. Look at these strong stocks and when the market does stabilize and it will then those are the stocks that you want to be in. You dont want to be in the ones that are broken. I think energy is way too soon, way too soon for energy. You hear these bullish Energy Traders<\/a> saying if you have patience. I dont. Mark, before we let you guys do what about markets other than the urs . Do you like europe, japan here . Actually, kelly, we like both. I think fundamentally japan looks pretty good. The bank of japan is probably going to have to light up more stimulus, same thing is probably true for the ecb. The fundamentals look far more attractive in europe than the u. S. So does their Earnings Growth<\/a> profile. I think you have to be patient. Last word, dan, to you. I think you have to be patient on foreign markets and as you know im which youre not. Im not. I dont see it. Not yet. I know you are itching to leave so we will let you go down. Dan fitzpatrick and mark luccini. That is one of my new all time favorite, im going to be woegt kwoegt that all weekend, bottoms dont start at the top. Put that in stone there. I love that line from patrick. This as the selling pressure intensifies, the dow down 309 points, the s p down 34. The nasdaq down 71, a percent and a half to nearly 2 declines. When we come back we will head over to the nasdaq, check in with Courtney Reagan<\/a> to see how the tech heavy index is coping with todays sell off. Still ahead jpmorgan chief jamie daymond hasnt been heard from for a while but this weekend he will speak and we will have a pre crew coming up. Random . No its all about understanding patterns like the mail guy at 3 12 every day or jerry, getting dumped every third tuesday. This happens every third tuesday. We have Pattern Recognition Technology<\/a> on any chart, plus over 300 customizable studies to help you anticipate potential price movement. Theres no way to predict that. For all the confidence you need. Td ameritrade. You got this. Welcome back. The dow lower by 325 points. Today a couple of Different Things<\/a> going on here. Theres the industrials relative to the broad index, the s p 500 down 36 points. Even the nasdaq down 1. 5 . Lets take a look at the nasdaq 100 heat map for you. Only six names in the green right now, they include amazon, looks like symantex, adobe and viacom. Even chesapeake in the green on a day like this. Lets head up to midtown to times square, the Nasdaq Market<\/a> site, courty reagan with a recap of whats been happening there. If you take a look at the nasdaq composite we started off the day negative but there was an upward trend until midday and then everything fell off and continued to fall off as weve seen on the other indices. We are sitting right now at about the lows of the session and if you take a look at the nasdaq action this weekend the first three and a half days was waiting for the fed to see what was going to happen but there was an upward trend for the nasdaq composite, then we got the feds undecision or lack of decision or leaving the rates unchanged and we saw the nasdaq composite fall off for the last day and a half or so. Those big fang stocks, facebook, apple, netflix, google all lower today. I know sometimes ak zon fits in, that name slightly positive but ever so slightly positive. Adobe the biggest winner on the nasdaq 100 it has been that way all day after reporting stronger than expected earnings and revenue despite putting up a revenue forecast. It has been able to hold on to those gains all day long. Vertex sharply negative on the other end of the nasdaq 100. Two pieces of news, a law firm is investigating the board of directors for a possible breach of fiduciary duties, thats all we know when it comes to that, Piper Jeffrey<\/a> putting out a note saying vertex is not too much an acquisition target for gilead. A couple things pressuring more so than the broader market. Lets keep an eye on the markets. The dow down 311 points, the s p 34, the nasdaq 69. It was Checkpoint Software<\/a> was one of those few names the nasdaq 100 in the green today. The post fed decision sell off continues here, but a lot of this is exploration. Now art cashin is signaling we do have 2 billion to sell. That is the imbalance going in and that is all expiration right now. When we come back we will get a Fund Managers<\/a> take. He will give us his take on today and what to keep an eye oon in the near future. Stay tuned. Awe believe active management can protect capital long term. Active management can tap global insights. Active management can take calculated risks. Active management can seek to outperform. Because active Investment Management<\/a> isnt reactive. Its active. Thats the power of active management. All right. Down 328 now thats just about the low of the session. Again, if you are just joining us it is an expiration day, options and futures contracts going off the board today and art cashin mentioned as a result of that we had about 2 billion to sell. Thats the imbalance going into the close here and we do have heavy volume because of this expiration today. Joining us now is michael giyed. Michael, what do you make of this weakness . I dont think its that much of a surprise. The great irony is that the stock market volatility which is causing the fed to not hike rates is being caused by the fed itself, by the uncertainty by not hiking rates. Lets face it, though, we do have an expiration day. This happens four times a year. Sure. Isnt that what this is about or do you think todays selloff with a disappointment to the fed not raising rates yesterday . Characteristically every time the fed has held on rates youve seen a rally. Yesterday when you had that big move up and reversal as yellen began seeing i think youre seeing a change in mentality. Its beyond expirations, i think you are seeing a change in the dynamics of how people beyond to this lower for longer meme which had up until recently been bullish, the longer that we go on the more unlikely that the fed is right about their future assessment of the economy. Is this about the fed being right about the economy or in a sense people wondering if this is as good as it gets whats the only way from here . Do you think stocks are going to continue to perform as well as they have in this environment or do you think that now they dont participate . You have to look at this from a big picture cycle perspective. This last cycle the last three, four, five years has been dominated by the illusion pollution of central bank om nip tens, faith in Central Banks<\/a>, low volatility and u. S. Stocks being the only game in town. That is on the precipice of change. Youre going to see average volatility higher and likely the u. S. Not being the cleanest dirty shirt among all of them. Yes, we have had this quantitative easing rally for the last six years, they like the free money and up goes the equity market here. Is this just the anticipation that they are going to take the punch bowl away at some point . Why arent we selling off if they havent done it yet. I think its the anticipation that the punch bowl is going to be there for much longer than people think. The constant need to want to get drunk off of free fed money and free fed alcohol it can be damage to go ones health. How close do you think we are to the next recession or enough of a slow down in growth that we could be more seriously talking about deflation . Thats whats very serious to me about where we are in the cycle. Around this time you start being concerned about the next year or two being a reversal in the economy and the fed would have some ammunition. You dont have that in this situation which is why i think its largely true the fed missed a window in terms of raising rates. As you get closer to the end of the existing cycle which is old in terms of this explanation you have to question can the fed expand the Balance Sheet<\/a> again and even if they do 25 basis points, so what . Well, that was what people were saying yesterday. What would it hurt to do 25 basis points . Right. You have to have ammunition, 25 basis points is not of a bullet for the next recession. Thank you for your thoughts on this crazy action today. We will come back with a closing kounlt down and i will have some charts to review this volatile week in week. After the bell we will continue our coverage of the day after the feds decision, to asking our panel if the fed knows something the rest of us dont. You are watching cnbc first in business worldwide. Forls good. Very good. You see something moving off the shelves and your first thought is to investigate the company. You are type e. Yes, Investment Opportunities<\/a> can be anywhere. Or not. But you know the difference. E trades bar code scanner. Shorten the distance between intuition and action. E trade opportunity is everywhere. Theno one surface. Out there. No one speed. No one way of driving on each and every road. But there is one car that can conquer them all. 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My name is watson. How can i help you . So youre a Small Business<\/a> expert from at t . Yeah, give me a problem and ive got the solution. Well, we have 30 years of customer records. Our cloud can keep them safe and accessible anywhere. My drivers dont have time to fill out forms. Tablets. Keep it all digital. Were looking to double our deliveries. Our fleet apps will find the fastest route. Oh, and your boysenberry apple scones smell about done. Ahh, youre good. I like to bake. Add new Business Services<\/a> with at t and get up to 500 in total savings. About two and a half minutes left as we head toward the close on this expiration day. Heavy selling related to this expiration of options and futures. Bob pisani is here with me. Were going to look at weekly charts just to see how the market did this week. The three major averages, dow, s p and nasdaq rallying until 2 00 p. M. Eastern time when the announcement came out yesterday and a sell off since then. For the week the nasdaq finishing virtually unchanged, s p down a quarter percent and the dow down. 45 . After all that volatility. Oil, though, big moves for the price of wti crude, back below 45 a barrel for a rally until today and today were down 4. 25 for the week up is that up. 6 . Yes. Were still higher on crude oil for the week. The twoyear note, normally we would highlight the ten year but the two year is what was screaming early in the week as it got up to. 8 in that area there, it was something we havent seen in four years and then after the announcement back down to where it had been lately to. 67 . Last one, this one is for bob, volatility, the vix, the volatility index, when all is said and done up 1. 2 for the week with that gain today of 11 . And for awful this as you pointed out at the top, what, a 600 point move in the Dow Jones Industrial<\/a> average. We are essentially unchanged. Lets not quibble about a few points for the week. As the old traders used to say dont drink and trade. Maybe some days its better to step back and not be trading. Or take a longer term perspective. I have been trying all day to divert attention back to earnings and away from the Federal Reserve<\/a>. We will eventually. We will. Next week nike, lanar, autozone, good consumer companies. There is a do you mean few of these companies that are on unusual fiscal years so we have quarters that end like in november, for example. Im eager to hear about that because we havent heard from a lot of companies. This week fedex and oracle, a little disappointment on them. What was a little bit of berth of information whachlt we need now is better top line growth, we have not had it in the first and Second Quarter<\/a> and havent had better bottom line growth, either. I think hopefully it will turn the conversation back to individual companies. As it should be. Thank you, bob. Another big week. Were going out and a lot of running around ond the floor as we get this expiration, those last second trades with the dow down 290 points on this expiration day. Stay tuned, more on the fed and what to look forward to next week on the second hour of the closing bell with kelly evans and company. Thank you, bill. We will come to the closing bell, everybody, im kelly etches. We will give markets an extra second to settle down as we do have a quadruple expiration day or quad witching but the dow going out with a loss of nearly 300 points, 292, thats 1. 75 , s p down 32 to 1958, nasdaq down 66 thats about 1. 3. We will get more from bob pisani who has been in the middle of this turmoil all day. The important thing is were still waiting for things to settle down, you see all these people around here, these are traders, floor brokers that are trying to settle out on this quadruple witching, the kwrl expiration of stock index and futures and options as well as individual stock futures and options, we have very haech volume for the next five or seven minutes as everything settles down we will still get heavy volume. Concerns about Global Growth<\/a>, i know you have heard it, but the fed added an extra layer. A lot of the big Global Industrial<\/a> names, the weakness in General Electric<\/a> and some of the other stocks, cummings, fleur, i thinker sole ranld, down it 203 . These are Global Industrial<\/a> names that would be sensitive to growth overall. Interest rates have been lower for the last couple of days as people realize the fed was not going to raise rates. This has been impacting a lot of the regional banks. Bank of hawaii, synovus, bb t down 2, 3rks 4 , the volumes have been heavier than normal because of that quadruple. The other big factor was oil. A proxy for Global Growth<\/a> when you have oil down roughly 4 on the day. All of the oil names will be down but in particular Energy Exploration<\/a> or production stocks will be weak because theyre directly tied to the price price of oil. Oil do you remember 4 , anadarco down 4. 5 . All the big e and p down 4 today. Finally for the week for all of the drama 600 points from the bottom to the high in the Dow Jones Industrial<\/a> average, dow ended essentially unchanged for the week. Maybe down 0. 3, 0. 4 . Still quite a week, exciting for a stock market reporter. Have a great weekend. Stick around for just a second as we wait for things to shake out here lets introduce our panel. Cnbc contributor and steve grass so he will join us off off the floor in just a moment. Mike, what do you make of this extreme weakness and how much we should tie it to the feds decision not to raise rates. I dont know that i could be persuaded that the fed had a ton to do with todays action, i dont think you wait half a day and react t seems to me you were unwind that go twoday rally into the fed. If there was a little more certainty and clarity that people were craving going into the fed you didnt get that. Once the fed didnt provide that you were left with what you had before which is a market struggling to figure out exactly how much it has to down scale its expectations for growth. Evan, in the past years into this recovery when there have been doubts about it at least the fed was able to convince markets to keep going, you know, were not going to do anything right now to tighten policies so the cycle is intact. Do people think were running out of juice in terms of this expansion and they are kind of already out of the picture . I dont know if they think that the expansion is running out of juice, there are clearly concerns about client fashion but janet yellen has yet to figure out that the fed is a giant confidence game. Thats all it is, going back to alan green span, ben bernanke, it was a confidence thing. They said things that the market wanted to near and janet yellen hasnt figured out the secret sauce yet. Lets get back to bob on the floor. Right now it looks like we can off of our lows rather notably here so we were down almost 300 points on the dow, the volume here is very, very heavy, were hitting almost 2 billion shares just on the floor of the New York Stock Exchange<\/a> if that gives you any indication on a normal day 600 million there r will change hands on the floor. Right now we will hit 2 billion and the important thing is this is probably the second or third heaviest volume day of the year although it is not dramatically moving the major indices at the moment. The point you make it s. An interesting one. Are you saying Monetary Policy<\/a> isnt real . I do think its very disconnected from the real economy. I mean, i think most Americans Care<\/a> a lot more about their weekly football fantasy picks than they do about whether or not the fed raises by 25 basis points. Having said that i think what is what is interesting is that, you know, they are kind of they at the end of the road and everybody gets it they are at the end of the road and i think thats what the markets are react tochlgt i dont think it makes a difference for the economy whether or not they raise by 25 basis points. We welcome steve grass so he. We had a guest last hour who said he looks at charts and things, 1800 on the s p could be a next stop. I dont know why we would stop at 1800 if he think were going that lie. 1867 was the recent low, 1820 was the october 2014 slow. If we break those two theres going to be a 1600 handle. I know my twitter will light up. But theres points before we even get to those levels. Why are you so vibsed down is the next move for this market . Why are you so convinced its up. Theres not a lot of money on the mutual funds cash Balance Sheet<\/a>s. They have had people redeeming names off their books but their cash levels are at historic lows. The buy backs are going to dissipate going into earnings season. I think people have already dee risked going into the fed. The r a lot of the leverage money is already pulled back and negative flows when they stop what makes them buy t though, is the question. Even if they have dee risked who is going to buy the market around these levels . There are a lot of people like me, ive been sitting on 40 cash for most of the year. Smart. I hate bonds and im willing she laughs at me all the time. I dont laf r laugh you a the. Every timeline is different. I have kelly is asking me where its going to be in the next month and i think but you see who is buying and evans point is he is going to buy. Evan is not going to hold up the market. Exactly. I would think that the market closes yearend right around where we are right now but i think were going to get that one more flush. Here is whats so interesting, kelly, since the start of the year with all the carrying on, the s p is down net of dividends maybe 3 . The tlt, which is the proxy for the long bond, its actually bound, its down only a couple percent. There has been no winning trade other than probably oil which is down a lot to sell oil. Why did the fed not raise rates . The reason why they didnt raise rates is not theyre looking ats that you are dual mandate because theres probably a quad mandate and worried about china. What do they see about Global Growth<\/a> that the four of us on this des dock not see . They know nothing. They know nothing more or less than you dorks steve. Thats the joke. What you are saying, evan, they do have a bully pulpit. By getting out there yesterday, telling everybody how worried they are about the Global Economy<\/a>, maybe about the u. S. Economy, does that, mike, have an impact i would say take the other side. The conversation today if the dow is down 300 is they dont get it. The markets are in disarray, the financial conditions have already tightened. Whats going on, they dont listen to us. Im a little referred up. I can see that. I dont think they could have moved. The spread between the ten year and fed funds rate historically is usually 350 basis points. Were lucky to have half of that right now. Theyre going to push us into recession if they raised. Bob pisani, bob, things still moving around a little bit. Steve mentioned what massive volume we had on the close. 2. 4 billion shares, this is just the floor of the New York Stock Exchange<\/a>. Steve will tell us thats four times normal volume. Maybe the biggest volume day of the year. I dont have the stat here. If its not its number two. The dow down 289. I would agree with steves point here, i think there are less compelling reasons to own stocks in the last 24 hours. What im hopeful is that maybe the earnings situation will bring buyers back in a little bit more, but right now you can smell it today theres just not a lot of buying enthusiasm. I want to see how the volume is next week to see whether sellers are picking up their desires to sort of get out of the market. If not what we need to do is get a little more buying interest. I dont spell it right now, though. Lets flip over to dominic chu now, he is keeping an eye on the three stocks you should be paying close attention to next week. Here is what we typically do our friends over at cnbc pro. What the outlook is for those stocks, the dow, the best performing Health Insurance<\/a> giant united healthcare, shares up 3 week to date. About 84 analysts say buy and the average target price is 145 bucks and change. 19 higher than current levels. As for the best s p 500 perform performer, its molson coors. They soared this week on the big rivals, coors could be a ben fish aer if a deal hams between their larger rivals. Perhaps picking up assets that are sold off in order to get antitrust approval. Possibly even that u. S. Joint venture that molson coors has with miller for the u. S. Distribution. We will cap it off with jd. Com. They are up big for the week leading a larger nasdaq 100 t has been bouncing a bit off those recent lows you can see trend wise giving the volatility in chinese stocks overall. On average analysts see 45 upside from here. Of course, some are skeptical given the volatility in u. S. Stocks. If you are a subscribe for cnbc prologue on there for more on those and other stocks to watch. Back over to you snoot same question im going to put to everybody here. Steve, what are you watching next week, either specific names or levels . I think you really want to ask there is a couple things going on right now, what performed well if they would have raised and that would have been utilities. Oddly enough its counterintuitive, but even more oddly is that utilities will perform when they dont raise so you want to look at those names, the names that have a higher yield. Maybe on a relative basis you look for that dividend, the Dividend Growth<\/a> stocks, lockheed announced raising their give lend. You want to look for companies raising their dividend in this environment and maybe if you have a buy and hold list in the next two months maybe be rewarded for that. Mike. Listening to the fed speakers because they will be out pretty large numbers next week including yellen, shes supposed to talk about inflation and modeling and things like that and i guess thats pretty much the story. Also listening for the start of pre announcement season, presumably thats going to get moving in the next week or two. Evan. I like the fed speak idea. You know what theyre going to do over the weekend they will place some phone calls to some of their well placed sources, you and i know several of them, and they are going to say, the market didnt really they can say it themselves now. Yeah, but janet yellen doesnt like to do that at least publicly. She will be speaking, be eager to hear from that. Bob, since youve been sticking around for uls what are you going to be watching next week. Lanar, nike and autozone. They will be reporting next week three Big Consumer Companies<\/a> want some insight in how the u. S. Consumer is doing, nike a little more global as well and i want higher Revenue Growth<\/a>. We didnt get it in the frt r quarter and the Second Quarter<\/a>. I dont know how much longer we can keep going with negative Revenue Growth<\/a> threequarters in a row. Our bob pisani, thank you, guys, as well. Very much appreciate t theres much more with steve coming up on fast money on 5 00 talking to the guardian report who are broke the story that apple could be a step closer to getting an apple car on the road. Here are the feds in action cause ago big fallout and sell off in financial stocks down another 2 today. Up next a closer look at financials and if you should be selling out of them next. Plus, find out which sector is usually rally a month after the fed holds rates stead yeechlt youre watching cnbc, first in business worldwide. Y yeechlt youre watching cnbc, first in business worldwide. Yeechlt youre watching cnbc, first in business worldwide. Youre watching cnbc, first in business worldwide. Oh, look. We have a bunch of. Announcer babies who are talked to from the time theyre born are more likely to have a successful future. Talking and reading to children in their first years has a huge impact on what they do with the rest of their lives. The fewer words they hear, the greater their chances of dropping out of school and getting into trouble. Talk. Read. Sing. Your words have the power to shape their world. Learn more at first5california. Com parents a big selloff on wall street to close out the week, the dow giving up almost 300 points, the s p down 32, nasdaq 66. On that nasdaq lets get over to Courtney Reagan<\/a> to wrap up this decline. Obviously we started off the session negative but there was an upward trend until midday when everything started to go downhill just like it did down at the New York Stock Exchange<\/a> where you are. I thought we were going to still close slightly higher for the week but we actually closed almost exactly flat. 0. 01 gain if you can even call that a gain, just hardly a point there. It was really broad weakness all the way around if you take a look at the different etfs and indices that track some of the nasdaq stocks, we have the philly Semiconductor Index<\/a> in the red, qqq thats that etf that tracks the nasdaq 100 that is lower, we also have the biotech index down by 1. 6 . Really almost everything was weak across the board. Save a couple stand jouts, there were some green players here at the nasdaq including amazon, just ever so slightly, adobe led the way starting in the morning and held is that position throughout the session. Checkpoint also another one of the names that was at least marginally higher on todays session. Kelly, back to you. We will take them. Courtney reagan. Things on the move but not for the good, down 2 in todays sell off. Yesterday weakness as well. Goldman sachs one of the biggest drags on the dow. Gave up almost 3 . Same for jpmorgan and citi and Morgan Stanley<\/a>. Lets see if you should stay the course with financials. Here with tom brown and naomi prince and our panel of course. Tom, if im not wrong here you guys invest primarily in financials. What do you think about the weakness youre seeing here . I think its a great buying opportunity. There was a Big Financial Services<\/a> conference in new york this week, a lot of presentations. The industry continues to grow at a high single doesnt rate and the valuations have become more attractive in the last couple days. Who in particular, tom, do you like . Is it the money center banks, the ones that have larger trading business . Weve heard some warnings on trading activity in the frt . Looks like equity trading was good, fixed income trading wasnt so good. Overall trading down 5 year to year when we see the Third Quarter<\/a> results. I like some money centered Banks Like Bank<\/a> of america, i think theyre re well positioned still in a recovery mode and i like a bunch of specialty oriented regional banks like meta financial, tristate and Service First<\/a> which is a birminghambased very rapidly growing regional bank. Okay. Naomi, what do you make of the spos sprekts for financials here. I think they will stay in a volatile situation. You have bank of america down 5 , jamie diamond didnt give an exact number but said Jpmorgan Chase<\/a> will be in that vicinity as well. Goldman sachs leading the market down today in financials. I think that continues. Banks the only one that hasnt mentioned anything about trading down has ban wells fargo and thats because they dont have as big a trading operation relative to some of these other large banks. Mike. I was going to ask tom these stocks really do trade based off of fed lift off expectations. It seems like its the only thing that can get them moving at least the big large cap banks. Is that the whole story . It is the market going to look beyond that or is that all there is . I think it was the whole story this week. So some of the stocks were running up in anticipation of a rate increase. Its a big deal for bank of america. 100 basis point increase in short rates would increase their Net Interest Income<\/a> which by over 10 . There were a lot of people speculating on a rate inn december cease . Evan, we are still in a low rate environment. I have a question for naomi and maybe to tom as well. Can the investment banks, so the Trading Operations<\/a> of the jp morgans, citi, goldman sachs, Morgan Stanley<\/a> without an obvious asset bubble so without the internet bubble, without subprime, without even recently the biotech and energy high yield issuance, can they make real money year in year out without an asset bubble . I think thats such a great question. What has been the bubble has been the fed keeping rates at zero and buying bonds and that can only last so long and it has increased its bubble by so much. There isnt an obvious place to go which is why theyre talking about lower trading and its why theres more volatility in the market. If you dont know where the asset bubble is and there isnt an obvious one thats where all this volatility we have seen in the last quarter and it will continue for the next quarter is coming in. Tom, same question to you. I dont think its so much about a bubble as it is the higher capital standards have meant that the largest trading banks have taken capital off of their trading desk and so the inventory is out there on the street are much lower than pre 12008. Is this all part of the reason why you like more specialized regional banks instead . Are they only attractive if rates do move higher . I will take Service First<\/a> as an example. Their Loan Portfolio<\/a> is growing over 20 a year. The Loan Portfolio<\/a> of tristate is growing 30 to 40 a year. They make loans for margin loans to over 100 different financial institutions. So theres Something Special<\/a> about these companies that are enabling them to grow faster than the typical bank. And finally, tom, it looks like were going to hear a little more about the leadership at bank of america next week. I assume since one of your top picks you like the status quo with Brian Moynihan<\/a> . Im confused by the focus on structure over process because its much more important that a board of a company like bank of america be actively involved in key areas like setting strategy and looking at succession, but if we took next week if we took the ceo title away from Brian Moynihan<\/a> and just made him chairman would all these people feel much better about Corporate Governance<\/a> . I dont think so. Whats really important is they have a strong lead director and then they have healthy involvement by the rest of the board members. I will guarantee you that is the case at bank of america today. It has to be. None of the four largest banks can have boards that arent actively involved in their management today. Thats for sure. Great point, tom. Thank you. Thank you, naomi both for being here this afternoon. Will the feds in action give a boost to emerging markets in the meantime. Later, does the fed know something the market does not or is it just having a communication breakdown win investors . Back in a moment. At ally bank no branches equals great rates. Investors . Back in a moment. T investors . Back in a moment. H investors . Back in a moment. That sound good . Not being on this phone call sounds good. Its not muted. Was that you jason . It was geoffrey it was jason. It couldve been brenda. Lease the 2015 rc 350 for 429 a month for 36 months. See your lexus dealer. vo wit runs on optimism. Un on . Its what sparks ideas. Moves the world forward. Invest with those who see the world as unstoppable. Who have the curiosity to look beyond the expected and the conviction to be in it for the long term. Oppenheimerfunds believes thats the right way to invest. In this big, bold, beautiful world. At ally bank no branches equals great rates. Its a fact. Kind of like shopping hungry equals overshopping. Welcome back. We do have a news alert on dave and busters, Mary Thompson<\/a> whats happening . Lets take a look at shares of the casual dining restaurants stock in after hours trading, its under pressure because the company says that shareholders will be selling 6 million shares in their secondary covering. The company has 41 million shares outstanding. Inn versers not to thrilled, the stock down 2. 6 in the after hours. We remember when they had those strong numbers, taking advantage of t stock react to go well after the feds decision to hold Interest Rates<\/a> steady. There are two sectors that usually shine. No action, no problem. History suggests the consumer stocks are a good bet after the feds stance and in terms of individual performers look to streaming, Home Improvement<\/a> and tobacco. We looked at how markets performed one month after the fed decides on no action. 2010 there have been 45 instances to draw on. During this period consumer stocks stand out which makes sense, lower Interest Rates<\/a> for longer means folks may feel comfortable to keep spending, the Consumer Discretionary<\/a> and consumer staple sectors returning more than the s p 500 on average. Now, in terms of individual picks check out nemt r netflix, home depot, Tractor Supply<\/a> and reynolds american, netflix is the run away outperformer, 7. 5 on average, home depot and Tractor Supply<\/a> both returning 3. 5 on average in that month after the fed takes no action. For whatever reason tobacco has done well in the wake of inaction from the fed as well. Reynolds american rounding out this list. The latest inaction from the fed may have added a bit of uncertainty but the stats suggest there may be some opportunity. Back over to you. Speaking ever opportunity, how about the feds decision not to hike impact emerging markets and their currency. Joining us is terry wise man. Is there a second win for emerging markets here . I guess it depends on whether you paid attention to the feds measure or you paid attention to the feds message. If you paid attention to the feds measure which was to keep rates on hold i think thats good for emerging market currencies, a lot of investors were concerned about the fed hiking and they were bidding up the dollar to the detriment of emerging market currencies over the last few months. Any delay would take pressure offer of the dollar from going higher. If you Pay Attention<\/a> to the feds message it was not a very optimistic message, it was a message that highlighted external and global risks to growth and of course emerging markets are highly dependent on Global Growth<\/a> and therefore the feds message was not an enthusiastic one for the emerging markets. Is it right to think of these emerging markets as a block . You take brazil, turkey and i see i get iran and south africa and those countries have really big political and structural problems and then theres china and india and maybe lumping them all together we dont see whats going on. China is a real issue and india is a separate animal and these other countries have bigger things to worry about than the dollar i would imagine. Im usually very against lumping the emerging markets just on the base of the fact that their economies are radically different, some commodity producers, some purchasers. I think one thing has changed in the last few years that allows you to better lump the emerging markets and that is a lot of the policymakers have moved away from the washington consensus, moved away from fiscal responsibility, moved away from pro market reforms and now as a result of that unusually the investor class is seeing the emerging markets again as a lump sum entity that refuses to move forward with the kind of reform they did in the last decade. I think in that respect they are all the same again. Its a good point. I was going to say you can trade them like a group. A lot of etfs. And captive to flows in general. Whats interesting is there was in counterintuitive story going ahead of the fed that if the fed did hike or when it eventually does the counter intuitively in the past that was relief for emerging markets. They anticipate lift off and once you actually get it they have relief. So if thats not the case right now it seems like it might be a lose lose for the short term. Of that group do you have a favorite and least favorite picks . Well, i will tell you that from a currency perspective which is what i follow even before the feds decision to delay there were a lot of emerging markets i should say a few emerging markets that were look to go hike their own internal policy. They were finally seeing inflation because their currencies had depreciated so much. Some of those markets like chile and latin america might still be on track to hike rates. If thats the case you might want to favor those currencies over the other currencies. A short list but two glim percent of hope maybe. Thank you for joining us this afternoon. Time for a consumer news update thats get straight out to sue herrera. Here is whats happening. Much of eastern thailand is dealing with overwhelming floodwaters, some of it waist high. Five province ps have been declared disaster zones, many tourist right side strand because the roads are impasse bl and boat travel has pretty much been banned. Cocacola has been notified by the irs that it sewed 3. 3 billion in back federal taxes plus interest. An audit found the companys reported income from 2007 to 2009 should have been higher. Coke says it plans to file a petition in u. S. Tax Court Challenge<\/a> that go notice. The nfl has filed paperwork to appeal the socalled deflategate decision, the league believes that the judge who over turned tomorrow bradys suspension ruled im prop i recall. The nfl will need to convince two out of three judges that the original judge miss applied or miss interpreted the law. Talk about strange bedfellows, things got rather heated in one ohio jail cell, it seems a man accused of murder was locked up with the witness testifying against him. It happened during a break in the murder trial, there you can see the courthouse camera capturing the whole thing. Interestingly the judge in the case said even though that happened, essay lounge the fight video to be shown to the jury. We will keep you posted on that one, kelly. Im not so sure. We will see. Have a good weekend. Thanks very much. Our sue herrera. Are investors worrying the fed knows something about the Global Economy<\/a> that they dont . And netflix Ceo Reed Hastings<\/a> sitting down with jim cramer to discuss original content and depending off the competition. The details are coming up. 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<\/a> and drive forward with broader possibilities. Cme group how the world advances. Here is a reminder of the tough session we had on wall street, dow down 289 points, s p down 32, nasdaq down 66, energy was the worst performer, utilities did a little better, volume was huge, was a quadruple witching day, one of the biggest volume days for the year. The Federal Reserve<\/a> deciding not to raise rates, janet yellen saying they need more time to evaluate Economic Conditions<\/a> its had some folks wondering if the fed knows something that the market does not. Joining us is laura ross ner and michael gaplin from barclays. Michael, back in august you moved your first rate hike to march, now is looks like the market is with you, are they going to be in march . I think the situation is quite fluid right now, you can make a solid case for december all the way to next june given various outcomes. We just felt like the uncertainty that had been injected into markets from china and risks from abroad were unlikely to be resolved by the end of the year. It was easy for us to get off of september, we debated about where to land and we just felt like the biggest probability was moving it into early next year so thats why we went with march. The interesting thing is the markets reaction, a negative day today, it has peopwonderings the fed know about how the market is really week. I have to completely disagree with that. I think the fed is being cautious and doing their job carefully, they want to make sure they know the risks in front of them before they take that risk with liftoff and they just need a little more time to make sure that these global influences arent having a bigger impact on the u. S. Than they think. Did you guys think they were going to raise in september . No we did not. We remain in december. We still are in december. But were almost a decade into this and they need more time . I mean, is the world that fragile place that a 25 basis point change is going to make the walls crumble and the roof come down . I just dont buy it. Its not so fragile. You could argue it is, many countries are at the zero lower bound but its also an uncertain world and the fed knows its aen uncertain world and its communicating that to investors and investors do not like uncertainty but unfortunately thats how the fed is going to make the best policy decisions going forward. Mike. Michael, mic sanity tolly here. I and a lot of other people have been pointing back to 2013, the fed decided not to taper in september as expected, they did end up doing it in december but between those two points people say theres no way they are going to make this move in december. Is this a parallel situation . Are there differences now . I think there are some parallel points to this. I think if they had said in the statement that they just cited strains in Global Financial<\/a> markets and as we know markets can look good one day and not so good the next, those strains do codissipate fairly quickly which would open the door for december. I would just say they pointed to Economic Risks<\/a> as well and low inflation over the next several months. So i think that makes it a higher bar for december, but your point is taken, december is not totally off the table, it may very well happen i just think theres other scenarios that could push it to next year. One of the odd things over the last couple months is stanley fishers speech kind of indicated that perhaps they were looking through some of the market volatility and focusing on their expectation repeated yesterday that inflation will come back up towards 2 and then this decision. I mean, do you think they know something about how weak the outlook is that thats changed in the last couple of weeks or the rest of the market does not . I dont think that they know anything more. They do good analysis but they get the same information we do. I think events are moving quickly ahead of jackson hole so he had a wellplaced speech together, he didnt want to adjust it. What i would note about that speech is the only thing that he could cite that justified inflation rising was his confidence that it would. There wasnt anything that he pointed to to suggest that inflation was currently rising. So i think you could view that speech in more than one way. Question for you, laura. Final question. Is there is it the feds duty or do they have a role of leadership, should they be responding to events or be leading events . By that i mean the world is stuck in this central bank cycle with all the Central Banks<\/a> are easy. Isnt it their role to lead us into monetary normalization or are they to be responsive to event . Its their role to lead us out into a nor normal policy stance but when the world changes when china slows suddenly in the summer, when we get equities tumbling the fed needs to look and make sure that what these shocks really are and to see if it means the outlook is weaker than they think. On that point everyone stay right there. We do have a news alert on a credit downgrade for a european nation. That nation is france and moody s is down grading its Government Bond<\/a> rating to aa 2 from aa 1. The outlook has changed to stable from negative. Moodys is down grading france because it expects to see continuing weakness in the countrys economy in the medium term. It expects this to last through the end of the decade. Again, moodys down grading frances Government Bond<\/a> rating to aa 2 from aa 1. Back to you. Thank you. Again, the significance laura of what you were just talk being for france to get a credit downgrade here. I think it demonstrates that the Global Economy<\/a> still in a difficult place with zero rates everywhere around the world and i think policymakers are going to respond in a cautious manner. Michael before you go, any thoughts on this news . The piece of bad news at the end of the week, i think lauras comments are wellplaced. All right. Thank you both for being here. They are going to find excuses every month for the next six months about why they cant do did. Horks the fed. Yeah. You mean every six weeks. Over the next six months. Have a great weekend. Be sure to tune into squawk box on monday, james balard will be guest post post hosting. Coming up a look at what could move the market next week. First, though, jpmorgan ceo jamie diamond sitting down with chuck todd. Chuck joins us with the highlights when we come right back. 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And what i found most fascinating and we talked about a lot of things having to do with the state of the current economy, we were in detroit, talking a lot of detroit, talked a little about donald trump and things like that but boy did he have strong words for the impact he believed washington in general and gridlock in general was having on the american economy. Take a listen to this clip. Im not going to blame any side here. We have had a series of things which i think just slowed things down and, for example, the debt ceiling crisis, government shut downs, gid lock on taxes, budgets, we didnt finish immigration policy. Those things are not good for america. I can never prove this. I think had we done all those things including like a simpson balls, Chuck Schumer<\/a> mccain came up with an immigration plan, a detailed immigration plan which is moral, right and good for the country, if we did the trade, if we do those things we would be growing a lot faster so youre blaming washington. Youre saying the economy we would be at 3. 5, 4 growth if not the wo gridlock. Im not going to blame washington, we elect those people. Blake up all. Blame all of us. If we want people in washington to collaborate lets elect people that collaborate. The other part of his argument is he says he thinks america is in great shape as far as the economy is concerned, the single best place to do business, not its the best place in comparison to everybody else, but he literally was laying it right at the feet of the gridlock in washington as the thing thats preventing us from having essentially he didnt say it this way but having a hockey stick moment for the economy. Turning to the panel its something we heard from larry kudlow who said its not the feds job to grow the economy specifically they are supposed to look all for financial conditions but thats ultimately the job of washington. Its interesting to me because jamie dimon articulated in a more candid way what is the ceo party line. But, you know dorks they not have politicians ear anymore, is there no more influence from this common sense business lobby anymore. Chuck, what are your thoughts on this, on how close the relationship is between the financial industry and wall street and policymakers . Its never been worse. One of the questions i posed to him and you will hear this on sunday, i dont want to give away the store but i said everybody from Hillary Clinton<\/a> and Bernie Sanders<\/a> to jeb bush and donald trump in some ways are campaigning against you, jamie dimon or people of your ilk and want to go put that distance and he acknowledged that, he understands the politics of it, but it also explains why i think that this crowd has less influence over washington than ever before. Almost the more they talk the more washington feels like, oh, my god, i cant look like im agreeing with wall street. Thats bad politics and here we go. This as weve marked the sevenyear anniversary of the collapse of lehman brothers. Much more to come, chuck, but thank you for joining us with a preview. Thats chuck today, host of meet the press. Be sure to tune in this sunday to catch all of that interview with jamie dimon. The epa saying volkswagen is in violation of emission standards. Phil. Kelly, this is one of those stories as it developed throughout the day people were saying they did what with what software in which vehicles . This is pretty extensive. The epa saying that volkswagen has software and about a half million vehicles that allow those strikes to pass clean air tests. These are devices or the software is a device that should not be on a vehicle originally manufactured to go through these tests. In other words, if its out on the vehicle it would pass without any problems at all, but according to the epa this software allows these vehicles to then pass to test. Lets take a look at what models are involved here. Most of these are are 2009 to 2 models, jet at that, beetle, audi a 3, and pass sat. Volkswagen said they are cooperating with the epa and that they will be remedying this situation in some fashion. We do know that the epa has said youve got to fix these vehicles. Whether or not you issue a recall, which is most likely going to be the case, something has to happen, but kelly, the potential fine for volkswagen could be 18 billion and you get that by taking the potential fine per vehicle, the max is that by 428,000 and you get a potential fine of 18 billion but most people who we talked with today have said look, it wont be close to 18 billion. They could see a hefty fine from the epa. And the whole thing, as you mentioned, phil, uncovered by college researchers. What a story. Well continue to follow it. Thank you phil le beau. More people cutting the cord and wee discuss the streaming and the Company Successful<\/a> original programming. More on that when we come back here on closing bell. The sudden loss of pasture became a serious problem for a family business. Faced with horses that needed feeding and a texas drought that sent hay prices soaring, the owners had to act fast. Thankfully, mary miller banks with chase for business. And with greater financial clarity and a relationship built for the unexpected, she could control her cash flow, and keep the ranch running. Chase for business. So you can own it. Which means you can watch movies while youre on the move. Sitcoms, while you sit on those. And even fargo, in fargo binge, while you lose weight and enjoy a good cliffhanger while you hang from a. Why am i yelling . The revolution will not only be televised. The revolution will be mobilized. Introducing the all in one plan. Only from directv and at t. vo wit runs on optimism. Un on . Its what sparks ideas. Moves the world forward. Invest with those who see the world as unstoppable. Who have the curiosity to look beyond the expected and the conviction to be in it for the long term. Oppenheimerfunds believes thats the right way to invest. In this big, bold, beautiful world. Welcome back. If your looking for bright spots, phoenix has been the netflix has been the best performing stock so far and we had a chance to sit down with Reed Hastings<\/a> today. They spoke about netflixs competition, particularly hbo. We have have some great competitors. Hbo. Weve grown over 40 million in the u. S. And hbo has continued to grow. Are they 28 or 30 now. They are over 30 in the u. S. But they have led on the other side of getting good at Technology Like<\/a> hbo now and phoenix and the two of us have a great rivalry. You can catch the rest of the interview on mad money tonight at 6 00. In the meantime, phoenix, do you think it continue netflix, do you think it continues to outperform here. It is outperforming nasdaq and facebook and clearly giving back some of the massive outperformance. The story did not get as good in the time netflix has doubled but longterm it works. I put it in the category of a stock like amazon. Both companies, i use their products and their sites. I think they are wellrun companies and they do add value. And it is a term of valuation. You have to be comfortable when it is trading at 45, 50. And they are the kind of stocks where i would never short them. But at the same time, it is hard when they are not making profits, whether or not you should buy the stock. And if netflix is less of a repository and just had the big deal expire with the distributor and relying on individual programmi programming, does that justify the story of the valuation weve seen. I think the bet they are making it they are just indispensable enough for the world. They are not pretending one a one for one replacement to the cable bundler. So far it has worked. You want the one show and the price point is not that high. It is low enough. If people step back and do the math and say if i cut the cord, im going to take a lot less programming for less money. That is not much of a bargain but netflix is not suffering from that. Just when you thought you had a break. Earnings season coming up and we get results from cars, General Mills<\/a> and more when we come back. Its not muted. Was that you jason . It was geoffrey it was jason. It couldve been brenda. The 306 horsepower lexus gs. Experience the next level of performance, and theres no going back. Lease the 2015 gs 350 with complimentary Navigation System<\/a> for these terms. See your lexus dealer. Excellent looking below the surface, researching a hunch. And making a decision you are type e. Time for a change of menu. Research and invest from any website. With e trades browser trading. E trade. Opportunity is everywhere. I built my business with passion. But i keep it growing by making every dollar count. Thats why i have the spark cash card from capital one. I earn unlimited 2 cash back on everything i buy for my studio. And that unlimited 2 cash back from spark means thousands of dollars each year going back into my business. Thats huge for my bottom line. Whats in your wallet . At ally bank no branches equals great rates. Its a fact. Kind of like shopping hungry equals overshopping. Welcome back. A lot to keep an eye on next week. Extended Market Reaction<\/a> to the fed decision here and over seas. Company we can expect. The question is what is the most important for investors, still trying to digest the fact that the dow dropped 300 points today and weve had a chorus of people on the program saying they dont like it from a technical or fundamental point of view. I wish those named matter next week. The companies will get some attention and drive the action. Im not convinced it will be the case. And the s p since august 24th has crossed the 1960 level ten of the 19 days. Does that mean anything . I dont know. It means were emotionally knocking around this range. Im hope forge a deeper trough into the correction. I would be happy to see it. I love for the oil names, which everybody hates right now, to go down even more and i would buy some more. So im expecting it may take five years, the reinflation of the Global Economy<\/a>, it might take a while five more years. Coy be so lucky. Mike and evan, thank you so much. That does it for closing bell. Fast money begins in moments. Melissa lee, what is off the top. Were talking about gold. Goldminers, your ticket to play. Over to you guys. Thanks, kelly, have a great welcome. Fast money starts right now. Live from nasdaq overlooking time square. Our traders are tim, steve, brian and guy. Tonight on fast, the street is buzzing about a new article that said apple is closer to building a car than anyone thought. The reporter behind the story is here and hell reveal what will have it coming sooner than you think. And alibaba, one year later. The shares are below the ipo price and it could get much worse on monday. Well tell you why. But first to the story of the day. 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