Englishman in the house to discuss it. Google unveiling a new smartphone called the pixel. A number of other hardware products. We got someone who says todays announcement shows google is finally ready to take on apple. Hell explain why. Who comes up with those names . Pixel. Reminds me of the movie. Pictures from facebook, guns, sex, drugs, and facebook. Is that what you do at night we told you yesterday about facebook is this what its going to be like for two hours. Facebooks new marketplace was launched yesterday to take on the likes of ebay and craigslist. People are already selling some illicit items on the facebook site. Well tell you how the social network is responding today as we show you more and more of these photos here. And for the first time medical device maker is warning consumers about a cyber bug in one of its products. Johnson johnson said one of its insulin pumps is vulnerable to hacking. We got details. And the guy able to hack the device. This is no longer just an episode of homeland. This is really. Absolutely fascinating. I had no idea an insulin pump could be hacked. Wait until you find out why he hacked it. Thats coming up. Lets begin with googles big hardware reveal. Josh lipton is outside of the google event in San Francisco with some of the details for us. Hey, josh. Reporter well, bill google ceo clearly getting very serious about hardware. That was one takeaway from this event. The star of the show was the new smartphone. Its called a pixel. I just spoke to googles head of hardware in terms of what he thinks makes this phone different. It comes ready and able with Google Assistant, the companys digital assistant, answer to apples siri. Making the case moving from a mobile first to a. I. First world. He think google has the advantage given all the data google does have about us after the months and years weve been using google search. The price is 649. Now that is tricky because that premium part of the Smartphone Market is under pressure. Google clearly believes it has the product to bring to market right now. Another way the smartphone is different than the competition it comes day dream ready. Remember google day dream is that vr platform. Googles bet is that future vr is mobile vr. It doesnt think future is pc enabled or console enabled. It wants to make one more accessible, more affordable. Said it will sell that for 9. More details about google home. Remember thats googles answer to amazon echo. Amazon has first mover advantage. Google clearly believes it has a competitive product. Certainly competitive on price. Google saying today google home will sell for 129. Amazon echo retails for 180. For investors what does this mean for some of googles partner. Google telling you they will start getting into the premium smartphone base, into the vr head phone space. What does that mean for partners like samsung. Seems an already complicated relationship that much more complicated. All good questions. Joining us for more is bob peck from suntrust. He has a buy rating. Also with us is lance. Lance, ill start with you. I carry an iphone. When i get a new iphone i download google maps and google search. Seems like they would like to get the hardware in on the business because thats where they could make money. They tried it before. Will they be successful this time around theyve never done anything quite like this. They never developed, designed and mafrd the hardware. Theyve always tried to influence their partners, teen first google phone was built by htc. There was no secret about it. Nobody is talking about a partner building this thing. Google wanted control because they never got things exactly right. Fact that its only coming out, the pixel is only coming out on verizon is telling. I tell you when you get the pixel phone it wont have any of that verizon bloat wear. Going back to the days of apple they had to squeeze at t this is the way youll make our phone. This is an apple play from google. Bob, what do you think of all this . Given the track record that google has had with hardware and i think of the google glass that lance wore a couple of years ago and brought on the set here. But, anyway, what do you make of todays introductions . As far as the financials it has no impact. Talk being over 80 billion of revenue and hardware is around a billion or so, billion and a half. However why are they doing this . We think theres two reasons. One is the point of control. You go back to the pc era, pc creators, they controlled who got preinstalled. Who was the default search engines, et cetera. As we went mobile, apple, samsung, the others controlled those points of control. We think google want as seat at that table not to be marginalized or at least participate. The other part two is data. They can use the data for a. I. , omni device available they can use that data to fine tune you better for better higher advertising targeting and roi, drives their core business. Those are the main reasons. I get all the why, bob but the Earnings Report comes out every quarter. We talk about the selfdriving car and spaghetti they are throwing against the wall. Then you see the numbers, oh, yeah google search. They make money from search. Is this enough to change the revenue stream for them and does it make it more of a buy, less of a buy . We dont think its hugely incremental. As i mentioned 1 or so impact so far. However where they can monetize it, improving of the roi and more and more ad dollars they can get because of that. I just want to say if you think about in the whole presentation google made one mistake they mentioned a. I. And Machine Learning up front which consumers their eyes closed they dont care. What they are focusing on and whats important about this is Google Assistant. Notice how they talk so much about google search. They talk about Google Assistant ties it all together which is backed by google search, Machine Learning, a. I. And this is a consistent thread that will go across pixel phone, mobile phone and every hardware product that google brings to the forefront from this point forward will be about Google Assistant. Understood. So much is made of the apple eco system, right . What they are trying to do here, i guess you mentioned all the apps and software that you download from google but now the hardware is trying to complete that eco system. Lance, do you think that people will want to buy the hardware just because they use the software and the apps that google makes . Its a tremendous risk. I just dont know. In toward get information buy this hardware they have to see something truly compelling. The pixel phone is good looking device. In addition to the Google Services they put something extra. Free storage for your photos and video at full resolution. That actually is very important to people. But it is such a big question mark. Theres so much competition. I dont know if google can beat apple. Where do you think the stock goes . We like it. Its a buy 99 target. For us much more pretty indicated on the core and how thats performing. Our checks with advertisers show very strong fundamentals here. Improving rois, this to us would be incremental to that. Would you sell april signal we dont cover apple. There you are. Bob peck, lance, good to see you both. Appreciate it. Lets get to your closing bell machines. Dow down 120 pointing right now. Steve, art used the word trap door to describe this sell off weve had. Whats going on . If you look at the market you and i discussed this on the floor yesterday. Right around roughly this time. We had on friday we had quarter month end. Whats the real catalyst to get in or out of this market right n now . I dont see much. I do see people letting it go sideways. Opec is basically the new fed. Everyone is keying in on that. I think people are leaving rates until the november discussion. But if you look at the market as a whole, Industrial Production, retail sales, ism numbers, these are things that people want to hold and bite into as far as fundamental reasons why the market can go higher. We had a better ism number. Next week we get retail sales. Thats what originally caused a lot of the selloff. Rick santelli, i was speaking to mike santoli, no relation of yours. We talked about the quick rise in Interest Rates, the two year yield to its recent top of the range, the ten year yield last i saw was once again threatening. Is part of todays selloff because were sealing horizon on Interest Rates despite what the fed will do. Yes. Yes. You win the kewpie doll. I dont think the rate rise has anything much to do with the fundamentals of economics. Steve is right. We had better data before the most. Lets all be frank here. If i had to draw a line over the last ten quarters that described the data it would be pretty darn flat. Yes it has some bumps. But well average about 2 or less even if we get spectacular third and Fourth Quarter gdp so the answer is yes. I know we shouldnt talk about the next thing but has there been any compass needle fluctuation and mario draghi and the ecb and quantitative easing and the notion about buying corporates i cant tell you there is. I dont have a good source that can whisper in my ear there is. It seems though. Many of my compadres talk about that. When you look at ten year note yields we see that we have left in the wake really for august and part of september huge amounts of heavy concentrated tightly packed price activity and Interest Rates. Mostly below where we are. As we move away from these prices think about all those positions that are in that consolidation and what their next move is. Ive been saying for days im not looking for a big rate increase and i dont think its a positive necessarily. How much pressure does Deutsche Bank bring on mario draghi and the ecb right now . How much is that affecting what were seeing in rates . You know, i think that Deutsche Bank is a Perfect Institution to reflect the knuckle headness of the policies that are being implemented to fix something because i guarantee you Mario Draghis negative rates is negative lending rate none of this is going to make Deutsche Bank better. I assume they get over the recent mogul. There might be something to that smoke which is leading to the conversation traders are having. Before we go mike, we talked about this yesterday seeming migration on wall street away from the defensive issues more towards cyclical and indeed today the rates are going up. Do you sense the market is getting itself ready for a time when the economy will start to go a little faster . Maybe . Sort of. Youre seeing some uncertainty and some volatility as weve gotten through the end of the quarter. People are still looking at the elections. They are listening to the Central Banks. They got one eye on Deutsche Bank. India eased for the first time out of that central bank with the new central bankers there. Were seeing additional quantitative easing or lowering of Monetary Policy around the world. Yeah, youre seeing a shift out of those yield stocks that have done well, the riits and telecoms. Its the Consumer Staples as well. Look for companies that havent done as well with good solid balance sheets. They will be the places to invest and live as you get to year end. We got to go. Thank you all for your thoughts on todays market. Appreciate it. We got 46 minutes left in the trading session. Here you saw the dow was down 130ish. Were getting close to that right now. Heading to the lows of the session once again. Coming up next drugs, guns, hedge hogs all on the set. Just a few of the illicit items that made their way on to facebooks new marketplace site. The company is issuing m memea mea culpas. Dont miss our Vice President ial debate before the debate. Well discuss what tim kaine and mike pence need to accomplish to sway voters their way in whats still a very close race. Youre watching cnbc, first in business worldwide. Unlesesyoure a barista. Cdw implemented Dell Poweredge servers withntel xeon unlespres to allowrista. People to work from ywhere, soucky me. So nobody wants coffee . hey,an i get a couple coes . Hanced mility by dell. I. T. Orchestration by cdw. 43 minutes left in the trading session with the dow down 120 points. Couple of other movers. Dr. Pepper snapple lower after that stock was downgraded from told buy. Dr. Peppers potential sale of buy brands and loves distribution could affect earnings per share between 20 and 25 cents and that stock today down more than 4 . Dollar tree is in the red as well with Cleveland Research downgrading it from neutral to buy. Facebooks move into ebays territory not going so well. Its new Marketplace Service launched yesterday and people started selling illicit goods such as drugs, guns, animals. Reporter facebook apologizing for the illicit items said a technical problem prevented them from looking. They said were working to fix the problem and will be closely monitoring our systems to ensure we are properly identifying and removing violations before giving more people access to marketplace. Facebook saying 450 Million People already visit, buy and sell groups on facebook every month. Now if this tool takes off facebook poses big competition to ebay and etsy and consideration late. Theyve drawn criticism they dont have a secure Payment System or star ratings. And it doesnt facilitate delivery which could lead to in person meetings with unvetted sellers. We were talking earlier today about some of the missteps that facebook seems to have made this year. The trending issue and various other things that have happened that theyve had to take back or do quick course corrections. Are they trying to do too much right now . Reporter its interesting. I asked that very question to one of the analysts who covers facebook earlier today. He said in a way its inevitable when youre a company this big and you try things this big there are missteps. Facebooks strategy on these things is very different from apples. Apple doesnt launch things until they are totally done and perfected. Facebooks strategy has been to get things out there teen iterate and fix them once they are already in beta testing or rolled out to the public. I dont think its that unusual for facebook with that strategy to get things out there and have to make tweaks later. I think about the biggest hurdle they face the whole issue can they monetize mobile and there was so much data and they managed to do that. Big time. Reporter that was the big question from several years ago. They proved facebook can be a mobile first company. The vast majority of its revenues from mobile. They dont need to generate a ton of revenue. But they should be looking at these different ways to make sure people can stay within the facebook eco system instead of having to go outside to ebay, et cetera to do different things. Be inning to see how it pans out. Thanks very much. Polls show a majority of voters find both president ial candidates pretty unlikable. Thats news . Hillary clintons unfavorable rating is 56 , donald trump at 61 . When the Vice President ial candidate meet tonight to debate the issues can they make either ticket seem nicer . Joining us now ricketyler a political analyst for msnbc and cruz for President National spokesperson and Jimmy Williams is the host of decode d. C. And former senior economic adviser to dick durbin. Good to see you both. Thanks for joining us today. Rick, nobody has ever changed their mind or voted based on what they heard from the Vice President ial candidates. Whats the point of tonights debate . Whats the goal for both sides here . I think its kind of tradition. Look the goal here is really not to make news. Donald trump has lost momentum. Hillary clinton has some momentum. So with catim kaine he has an easier path. He wants pence to own trumps missteps and by contrast pence wants tim kaine to disagree with hillary or take responsibility for some of her ethical missteps. But i dont think there will be anybody swinging from the fences. They will be going for base hits and doubles. Y my, i assume you will watch the Vice President ial debate. You want to see if these people are ready to assume the presidency. In this election some people hope that maybe they assume the presidency or on the ticket at the top instead of where they are at this point. What can either one of them do to convince the public that they are the right attorney step in if needed . What is the great slogan, keep calm and stay cool. I think rick is exactly right they cant screw it up and just have to be come across as thoughtful, as smart, as president ial. And you cant say crazy stuff thats going alienate suburban voters, women voters and i think thats where they are going to have to do somewhat of a little bit of a jumping trick. Both of them will have to do this. Most people dont have a clue who either of these two men are outside of their home states except for indiana and virginians. I dont think that Hillary Clinton will win indiana and i do think that shes going to win virginia. So whats the big deal . The big deal here i think the moderators have to figure out a way to draw them outside of their comfort zones by actually making their policies disagree with the president ial candidates policies. That will be the real clincher. Jimmy i guess that means you wouldnt see them attacking each other the way trump and Hillary Clinton might do . Honestly i think pence will not go on the attack mode. I can see tim kaine doing that. He needs to be a bit more forceful. Both will play it safe. If i were advising them i would say play it safe and be presentable. Rick, whats going on behind you. Is there a protest . Im in front of this is longwood. People are Getting