Down 3 today. You got the stories about the bending iphones. Now problems with its latest operating system update. Just how much troubling news is this for the tech giant . First, though, check in with sue down at the New York Stock Exchange. Hi, sue. Hi, ty. It is an ugly day down here. The dow down triple digits. The fourth straight triple digit move and something the dow hasnt done since mid april. Giving up all of yesterdays gains. Here are the numbers. Dow down 242 points. The low of the day down 256. S p 500 off 28. Nasdaq off 79 points. Leading the decline in terms of percentage moves. Russell 2000 laid claim to that earlier and come off of the worst levels and down almost 16 and the transports down 112 points on the trading session. Where Interest Rates are right now, 10year note, the yield trading at 2. 522 . More on the trading action. Bob pisani is with me. Bob, we start with you. Were just off the lows of the day. I think two issues particularly gotten a lot of attention today. Look at the s p 500. Richard fisher, he of the dallas fed, a wellknown hawk, aggressive this morning saying the fed may raise rates by the spring of 2015. Earlier than anticipated and made similar comments before. He took a shot at the high yield markets. He said in particular, beginning to see extreme risk taking in the junk bond market. Surprise. High yield down and thats affecting those areas. These sooner rather than later comments also affecting emerging markets. Theyre Interest Rate sensitive, as well. No surprise, the eem, look at that, down more than 2 . Turkey, india, the emerging market etfs are weak and rather high volume. Other issues, sue. Rather vague reports, unconfirmed, that the russian government may enact a law to seize foreign assets on russian territory in response likely to western sanctions. Unconfirmed but you see what happened here to germany as these reports came out, before our open, their markets headed down and then started to accelerate once the u. S. Market opened. This is a big issue over there because if the conflict escalates we have no growth in europe. We could tip it into negative growth and perhaps even a recession down the road and this is concern. France was weak. All the charts look the same. With a due of volatilities, the etfs move a lot. Is theres an issue with the strong dollar, as well. Look at the high beta etfs of solar stocks. Nasdaq bio tech stocks. Thats semiconductor index. They move more when the market is volatile and whats happening. What theyre doing today. See you in a little bit. Apple is biggest drag on the nasdaq down about 3 . Bertha coombs is following the big movers for us. Hi, bertha. Hi. Last week, beginning of the week, we saw the decline led by the small caps and the russell 2000 off about in line with the overall market. Heres the big plunge. Nasdaq 200 down. Apple dragging down did big caps. Bob talked about the bio techs. Selling off hard. Down 2 today and the chip stocks, as well. There have been only a couple of stocks that have bucked the trend today. One of them is discovery communications. The company is buying a stake in a channel doesnt already own. Another one is mankind, mnkd and moving higher on a development deal. A couple of other stocks to watch here. You know, we have seen lots of negative sentiment but gopro today hits an alltime high after having gone public in june today. Extending the momentum of yesterday as stocks got bought back and stocks hitting new highs all of them have been dragged down as we have watched this decline here in apple. Whether its bendgate, sentimentgate, the ios problem. Apple at a low we havent seen since september 10th. Sue . Thank you very much, bertha. With the dow approaching the lows once again, lets see whether or not that put a bid under the 7year note auction. Rick santelli, how did we do . I thought it would have been a better bid. This is similar to yesterdays 5year. I picked c minus. 29 billion 7 year the yield at auction. 2. 235. Which is about a basis point tail because it was bid on the offer side. The internals, the bid to cover wasnt bad. 2. 48. Below the 2. 568 10year auction average. Indirect pretty good and the directs failed miserably at 10 . That was the lowest level since july of 2012 which meant dealers took 41. 7 of the auction, a very questionable cminus and does understand score it seems so intuitive for a better bid for the auction and investors are staying away at the moment, maybe until a little bit of the smoke clears. Back the you. Thank you. Check out gold and oil since the beginning of september, both down about 6 . Gold off 5. 25. Looks like 5. 91 for crude oil there. Important, nearing the 1,200 level on gold, i guess. Oil around 96. Energy stocks among the worst performers lately. Dominic chu taking a hard look at the hard commodity stocks. Dom . The ones you drill for or mine for. Right . Look at the renewed selling pressure in the markets hitting Energy Stocks worse than other ones. It is a sea of red today and see there down about 1. 3 . Energy stocks taken a big hit in month of september alone and lost about 7 month to date amidst Falling Oil Prices taking energy the single worst performing sector so far in this month of september. Among the worst performing stocks in the group since the month began is exploration like Newfield Exploration losing about 14 so far this month. Also valero down 15 during that very same time frame. And the Oil Drilling Companies had it the worst this time around. Transocean, diamond offshore, noble corporation, all down by at least 16 and just over the last three weeks here. Speaking of drills, it is not just gas and mining stocks but about the gold precious metal type companies, as well. Prices have been weak especially in gold despite the slight update today. Freeport, both components and down at least 10 just since august 31st. Theres quite a bit of Downside Momentum shorter and medium term with the names. Now, its about how much more downside there is or whether or not enough of these have fallen enough to put them on investor tyler shopping lists. Back over to you. Thank you very much. Check out the small caps. They have been taking a baetding down about 5 . There you see it on the russell 2000. Is this selloff potentially a time to go doing a little bargain hunting . What did you find, morgan . First of all, showing weakness all year and despite that, there are still a number of Small Companies that analysts are still really bullish on. We screened the russell 2000 for stocks with a 500 million market cap or higher dropping from the highs and really strongly recommended by analysts. One example, take Goodrich Petroleum corporation. This is an oil and gas producer. Largely based in texas. Stock down about 67 seasons this year and 14 buy ratings from analysts currently on the stock. Another name to check out is ciena. This makes Communications Networking commitment. Thats down about 25 year to date. That, too, has 12 buy ratings from analysts. Thats despite the fact that it was a lowered outlook for the current quarter. We have even seen a recent upgrade in spite of that. Nimble storage is down 43 year to date. Really getting walloped this year and that, too, 12 buy ratings from analysts and moving out we have seen a number of reports from analysts just this week. One example, Goldman Sachs with a report highlighting small caps with strong Free Cash Flow and Solid Earnings momentum so for them they have names on the u. S. Conviction buy list, sun coke products up. 5 this year and goldman projects it could have 14 upside in that stock price moving forward. Also, Wifi Technology maker ruckus wireless. Bucking the larger trend up 4 so far this year but, again, goldman expects this could run another 24 on that stock price. Lastly, want to pull out Darling Ingredients with ingredients for food and pharmaceutical Companies Come off 11 year to date. Again, goldman thinks this stock could have a 34 upside in coming months. So certainly some names to take a look at as we see the markets continue to come off today, tyler. You know what . Ill take it. You gave me a perfect segue to the market guest. Take a look at where stocks are sliding now. Dow down 238 and the dollar is continuing to march higher. Hitting 14month highs, a strong greenback could have major ramifications for big cap stocks that do the business overseas. How do you play a strong dollar and the possibility of rates rising sooner rather than expected . Joining us now is phil orlando, chief strategist on the floor of the New York Stock Exchange with me. And katie nixon, welcoming her back, chief Investment Officer for Northern Trust wealth management. Phil, im going to start with you. Before the dollar specifically, what do you make of todays selloff and the volatility between yesterday up almost 200 points and now were off better than 200. I. Im going to discount the volatility because of the holiday. Any kind of movement can be exaggerated up or down on this kind of a holiday. Yeah. Overall, do you still like the market . I know that some places are a little bit stretched and other places still have value. We remain constructive. We have a 2100 forecast on the s p all year. Sticking to that number. That probably puts us about 6 or 7 away from the target at this point and we think we have a pretty good fourth quarter. Katie, we mentioned the dollar and i know that you have an overweight to equities. You like the equity space certainly but if the dollar continues to rise and earnings are what driving some of these stocks, are you worried that the stronger dollar might hit some of the larger Cap Companies . So first i think its important to recognize whats driving the strength of the dollar so we have a couple of things. Firstly, the u. S. Economy is gaining momentum and so were seeing the u. S. As a sign of strength in a Global Economy that seems to be having trouble. Secondly, our central bank as you mentioned may be closer to the exit than any of the other developed market Central Banks so providing a nice tailwind to the currency and seeing very Strong Demand for u. S. Assets. Those are positives. We look at the past and see that strength in the u. S. Dollar has a positive correlation to equity returns here so were not searched about the strength of the dollar. I do think you raise a good point, though, about the affect on multinational margins and certainly i think well hear of in the Third QuarterEarnings Releases upcoming and keep our eye on. Phil, where would you put money to work wary of the fact, perhaps, we might see the big exporting companies or multinationals take a nick in thor andings . I think katies spot on. With the analysis she did. We like large cap stocks over small cap stocks, as well. But very good point that major u. S. Based Multinational Company that is do a lot of exporting as the dollar continues to strengthen, we may see some pressure on the export volumes and that could hurt consolidated returns. So the flip side of that argument is smaller cap stocks which have been pulling back here. Probably down about 9 or so over the last couple of months. As their valuations become more attractive, and if there is further pressure on an exporting volumes, perhaps setting up for a rotation as we get later into the year. Katie, final thoughts from you . Final thoughts is that were still very positive on risk assets. Im not surprised to see the market pull back today. It was mentioned we have Light Trading volume in combination of fact of quarter end and seeing a risk off trade here and i wouldnt carry it into the future. I think we are positive on the markets. Yeah. You have said taking risk is rewarded this year. All right. Thank you so much, katie. Phil, good do see you. You have to come back more often. I will. Both of you, thanks. Back up to you. Thank you. China adding to market fears. A report of regular lay to recalls with 10 billion in fake currency trades. You didnt hear me wrong. Chief International Correspondent melissa carusocabrera with more. Where this story is interesting, michelle, in the hows and the whys. Exactly. 10 million is probably low. And it may million or billion . Billion is low. A lot of people involved familiar with this market think its actually much bigger. You may think its a business of scoundrels and cads but not necessarily the case. Whats probably ka happening here is using fake currency trades and faking voices in order to move country move money out of the country illegally or to secure financing because, remember, theres two key things about china right now. The way they allocate credit is not by the market. But by political dictum and financing is difficult. Trade finance. Offshore. And or its because, you know, theres a limit on how much money to bring out of china every year. 50,000 worth. And yet, there are many, many Chinese People buying 50 million apartments in new york city. How does that happen . Big estates in california. How does that happen . Here may be part of the answer. Exactly. Another big change potential change in china would involve the head of their central bank whos been on the job a long time. Word is that he may be moving out. Replaced by the new leader over there. Whats going on . So hes been there a very long time. He stayed beyond retirement age and asked to stay longer. There was a fix to get him to stay longer and concerns, is he pushed out pushing for too much reform like the way credit should be allocated and like allowing money to move freely like we were talking about. People very familiar with china tell me they dont think thats the case and because the man to take over is just as much of a reformer as he is and very much a supporter of allowing capital to flow for freely. To allow the normalization of the chinese Banking System so that it works like the rest of the world. In other words, bankers decide who gets credit not based on politics but based on the credit worthiness. The new leader probably wants his own people in there. Exactly. Exactly. Michelle, thank you very much. All right. To Morgan Brennan now. Market flash. Thank you, tyler. We were just talking about stock picking in the russell 2000. Heres a name for you. Check out Swift Transportation popping about 12 right now. Swift reaffirming higher Third QuarterEarnings Guidance in a company release. The coo citing improved driver turnover and record recruiting. Sue . Thank you very much. Look at apple stock today. The worst performer on the nasdaq 100. Bending iphone problem, problems with upgrades to the latestios. How big are the problems really for the tech giant . Investors and apple fans certainly need to know. The stocks off better than 3 . Heading out, a look at how some of the inverse etfs are trading when the market goes down. These inverse benefit all up at least 1. 3 . While every business is unique, everyone is looking for ways to cut expenses. And thats where pg es Online BusinessEnergy Checkup tool can really help. You can use it to track your Actual Energy use. Find rebates that make equipment upgrades more affordable. Even develop a Customized Energy plan for your company. Think of it as a way to take more control over your operating costs. And yet another Energy Saving opportunity from pg e. Find new ways to save energy and money with pg es Business Energy checkup. All right. Lets take a look at a Company Whose shares are tanking today. That would be apple almost 3 . Been a rough week for apple. The company pulling its ios 8 update for a possible glitch that could turn your phone essentially into a brick. This comes on the heels of complaints about the new iphones bending. Apple issuing a statement about the ios thing saying were working around the clock to prepare for ios 8. 0. 2 with a fix and will release it in a few days. How bad are the problems for apple . Talk to jon fortt and dawn chimaleski. Welcome back dawn and jon. Thank you. How bad is this for apple . They have had smudges on what had been a pristine reputation over the past couple of weeks. Yeah. You know, clearly, no ones popping champagne corks in cupertino over there but lets put it all in perspective here. The company within an hour of learning about the glitch in its ios 8 update which took phones and brought them kiss connected them from the cellular network, they took it down, apologized, published a work around late last night. Theyre being responsive which is, you know, you have to give them credit for owning up to the problem. Yeah. But, jon, this is a fairly, you know, on a dramatic unveil like the iphone 6 and 6 plus have, this is a fairly dramatic stumble, isnt it . In a way, tyler. But i would argue there are two types of problems that you have as a company with a launch like this. Theres the type to quickly recover from and a type you cant. The type that you cannot quickly recover from is like an innocent thatgate and the basic design of the phone is covering up something that hurts reception. They did recover from that pretty quickly with bumpers and then the maps issue and the maps were flawed. It took them a series of months to get them closer to up to par. In this case, with ios 8, they push out an update to hopefully fix this once we see it in a few days and know for sure and able to put a fix to let people roll back to a more stable version of the operating system and then coming to the bent phones and there are reports of this beyond what you s