How this all plays into the Federal Reserve. I like jims point there in Halftime Report which is if they dont move in september, were goi in december, were going to drive ourselves in sane. This is right in the sweet spot of the feds full employment number. Maybe that number is going to come down but right now theyre between 5 and 5. 2 . Over to the 173, thats the payroll number for august. Thats below the 220,000 that was forecast but several economists, many economists, point out august has been consistently revised higher. The most revised month of the past five years. You by 75,000. We also have positive revisions and a wage number that was a little bit higher than expectations. Some of the calls made expost after the number came out. Wells fargo, ubs, bank of tokyo, all affirming or saying they are in the september camp for Federal Reserve raising rates. With. September, there are good names over here in december. All these in the december camp. Quickly some of the arguments. Reasons to go. At full employment that 5. 1 is where the fed has no gain from waiting unless you take it away for many months that quarter point will hang over and drive us crazy over the next several months and also weigh on the market. U. S. Economics strength, we did 3. 7 second in the second quarter, were at 2 , 2. 5 in the Third Quarter. Market volatility and Global Economic weakness. I would say i still go with the reasons to go, im in that camp as well. Nonetheless it certainly feels like there are plenty of people out there who feel were still sitting on the fence or didnt push us in either direction definitively so the uncertainty continues. Stocks are absolutely tanking at this hour, were sinking further to session lows. Were down by 313 points right now. Bob pisani joins me here on the new york floor. It feels like rather than any major selling pressure we are just suffering from lack of buying interest, a, going into the long weekend, b, ahead of the reopening of the Chinese Markets and a massive week of chinese Economic Data. The problem all week is there has not been massive volume during the day for most of the week, yet theres been no buying interest. We had some problems today even before the jobs report. We were weak overnight because japan was weak. Now chinas closed. No selling pressure, but no buying interest. The market internals, believe it or not the bottom is only average today. Not a lot of heavy selling pressure. 4 1 declining to advancing here. Look at the s p futures. Overnight session we were trending all the way down. We were essentially challenging the lows from the day. Thats right after we opened around 9 30 eastern. Sectors, this is not a day for stocks. This is just taking down exposure. The whole market is down 1. 3 . Im a little concerned with the financials. Again underperforming. This has happened a couple of times this week. Some of the big financial names, your usual big names are below the market again here. Now i talked about the fact that they are expecting big things from financials in the Third Quarter earnings is supposed to be up. This looks like theyre trying to anticipate they may not be as strong as people were anticipating. Of course not surprisingly we see the merchant markets weak as well over a lot of uncertainty about china. You and i have talked about the fact that there is a lot of Economic Data in china next week. Brazil, south africa, malaysia, all to the down side. One quick question. Youve been talking about the range. Compared to the last couple of weeks because this week is a narrower range. The last couple days its been a narrower range. Today we may challenge that with being down 300 points. People feel monday, china u. S. , u. S. Not open. This may be why we are seeing the downside. A news alert now. Dominic chu . If its friday, it must be whats happening here with bakerhughes all rig counts. We have rig counts on the u. S. Oil side of things down 13 from the same time a week ago. Down 13 rigs from last week. That brings the total to 662. Just to grive some perspective, this same time last year we had 1,061 more rigs. Again, we are down 13 rigs to 662 u. S. Oil rigs. Thats down 1,061 rigs from the same time last year. Again this breaks a shortterm winning streak in terms of rig count gains. This time around down 13 is the number here. Were watching oil as a result. A bit surprising oil not reacting positively, losing a bit down 30 cents right now. By the way, the dow now down 308 points. Oil the big story, based on that rig count, lets go down to Jackie Deangelis at the nymex. Good afternoon, brian. Prices are down 33 cents but it was remarkable when those rig count numbers came out, we were trading around 46 and we rebounded about 60 cents on the session. Our session low today, 45. 76. Still watching that number at this point as we are seeing this downside momentum. But given the action that weve seen the last few days in terms of equities and oil moving together, i would expect with the dow down this much, for oil prices to be down more than they are. So those rig counts definitely made a difference here adding a little support even though we are in negative territory. Also interesting is that the dollar index is now negative and oil really hasnt moved much higher on that as well. I done want to mention gas prices, 2. 42, the lowest gas prices on labor day heading into a holiday weekend. Down from 2. 64 just a month ago. If oil prices go lower, so do gas prices. But if crude goes up, watch out. Thats good news for all those about to hit the road, though low gas prices. Now over to the nasdaq in times square where Bertha Coombs has been following the movers there. Were watching here the nasdaq and largecap nasdaq 100, both at session lows. But even as we look at them down for the week about 3 , theyre still up 9 from last weeks low. We havent really challenged and gone through yet. Many of the usual suspects though today are driving us lower, apple once again sliding back to tuesdays lows. Though not on tremendous volume. Thats one of the things were seeing today ahead of the holiday. Not so much volume so not so much conviction. Netflix on the other hand down for a record six straight session. Traders say this stock just seems to be down because its being used as a source of funds. A lot of folks are selling to use that to buy other things or maybe just to have some cash on the sidelines. Netflix stock is still up 100 for the year. Blackberry, one of the few stocks bucking the trend, having bought its archrival Good Technology for just under 500 million. Back to you. Thank you very much, Bertha Coombs. Headlines at this hour nissan shares are taking a hit. The japanese automaker recalling 300,000 cars to fix a console issue that may catch the drivers shoe and delay the transition from the accelerator to the brake pedal. No deaths have been tied to the problem, but on a down day the shares are off by 2. 3 . Facebook meantime turning up the heat on ebay. The wall street journal says the social media giant is making it easier for users to buy, sell and trade items through a facebook group. And a Service Announcement to all of our listeners and viewers. Tune in to kwauk asquawk alley. Warren buffett. Make it a date, tuesday, 11 30 a. M. Eastern on cnbc. Stocks continue to slide. The dow is down 300 points following this mornings jobs report. There are of course fed fears out there. Youve got china slowing down. Many emerging markets are now officially in recession. Dollar is losing steam as well. Is boring old cash or a cash equivalent your best financial bet right now . Joining us now, bill gross, Janus Global Unconstrained Bond Fund portfolio manager. A billion things to talk about. Bill, your take on the jobs number and the fed and the xh economy. Hi. The jobs number was mediocre but decent and probably in terms of it janet yellen and the fed, sufficient for either september or december. Its probably on the line. The u. S. Economy is chugging along at 2 . Thats decent. Thats not great but its allowing for corporate profits to stay at least at flat levels going forward. The u. S. Economy isnt bad but there are significant global imbalances as you just talked about with china and emerging markets and their currencies which in many cases are dollar denominated and could lead to problems down the line. And ultimately, last point before i break here, 0 Interest Rates have for a long time exerted a negative influence on the economy. A positive influence though on financial markets, but they destroyed business models. Insurance companies and pension funds, theyre all in trouble because they cant earn that 7 or 8 which theyve basically assumed in terms of their liabilities. Interest rates are close to 0 . So we have a very positive Monetary Policy that has stimulated asset markets, but they are now impinging on the ability of the economy to grow in reteral terms. This morning, fed chair Alan Greenspan was on squawks box. This morning he noted, lets stop worrying about a quarter point rate hike if we get one. Because weve got entitlement spend something which is now three times more than it was 40 years ago. We have all these other monetary and fiscal challenges and that were too obsessed about a potential negative outcome from a quarter point rate hike. Would you agree with that . Yeah, i think hes right. I think the economy can stand a 2 nominal policy rate ultimately but im not sure that the risk markets can. At the moment the forward yield curve in the u. S. Is forecasting a 1. 25 policy rate two years from now. That pricing significantly impacts stock prices. Highyield bond spreads, arbitrage possibilities and real estate and private equity markets. So in my opinion, the fed and other central bankers went too low and for too long, and now it will be very difficult to significantly reverse course. But Interest Rates at 2 probably wouldnt hurpt tt the economy, they would hurt financial markets. Fed, do you think the fed might have missed its window to hike, and if december they hike and things in the global world slow down and things get a little rocky in the markets, is there any danger they might have to reverse course, like some banks around the world have done, ie hike, and then pull that back again . Well, they might reverse course in terms of quantitative easing. Reversing course in terms of lowering the policy rate back down to close to zero i think would be impractical. But more quantitative easing is what mario draghi is suggesting. Whatever it takes. You doubled up on that, at least conceptually, a few days ago. So central bankers are of the persuasion that the more money thats printed or the more assets that are purchased by Central Banks, the better. I just simply think that Monetary Policy has run into a dead end here because the printing of money doesnt necessarily lead to real Economic Growth. Weve seen that in japan for ten years. Were seeing that basically in euro land. We only saw 2 real growth in the u. S. For the past five years. Quantitative easing is not a magic elixer, and i think the real magic comes from fiscal policy, which as we know in the United States, because of the differences between democrats and republicans and theyre controlled by a republican congress, and certainly in europe where the persuasion is that fiscal austerity is the way to go as opposed to fiscal spending. But governments have to spend money as opposed to print it. The weird thing about this volatile time, bill, in the last couple of weeks, normally stocks sell off and other asset classes, maybe treasury or gold go up. The dow, gold, treasuries everything i am looking at on my screens is down this quarter. People are selling, theyre raising money. Where is that money going . Where should that money be going . Well, i think the money must be going to ka shacash to some and back to sovereign nations such as china. It is difficult to prove, brian, but as china tries to support its currency, basically they use that for reserves and are forced to sell treasuries. I cant prove this, but in looking at the tape, its suspicious that, as you mention, the stocks go down. Bonds dont go up very much. They are today. But perhaps there could be some selling by the chinese in terms of supporting their currency, and it could be upwards of 100 billion to 200 billion. No one knows, but thats one of the problems when you get these currency end belts, that ultimately as theyre unwound, or in this case supports, they lead to distortions in bond and equity markets. Bill, we got to leave it there, unfortunately. Could go all day but hopefully we get you on again very soon. Have a great, long weekend. Weve got someone on the show later on who just went to all cash. 100 . Yesterday. Well talk to him about why hes doing that. Investors are gearing you were up for rake heights ahead. What will the feds move meanho, refi rate . Who hates uncertainty . Mortgage lenders. Well tell you how rates are reacting on this allimportant jobs day next on power lunch. Hey hi our cloud its a platform based on awesomeization really . Can it keep our data where it needs to be no matter what country were in . Integrate with our systems to help keep transactions secure . Combine Customer Data with likes, tweets, the weather, to predict trends . That would be awesome. Tote . Now theres a cloud that understands business. Now theres the ibm cloud. 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. Is. Welcome back to power lunch. Lets call your attention to whats happening with the markets right now because we are in a selloff quarterba off, th rather muted. The dow near the lows of the days trading session so far. S p down by 34 point, down by 1. 33 , down 62 points. Among the sectors broader Industry Groups some people are focusing on today, Airline Stocks overall. Crude oil prices are down. Theyre standing up airlines on this down day. Some are in the green likely due to lower fuel costs. The xal ticker up 1 . If you look at the other airlines, all up fractionally holding on to some of those gains but a mixed picture developing here for the airlines. It was stronger much so earlier today and now losing some momentum into this afternoons trade. Thank you very much, dominic chu. All the talk of raising rates putting the focus on housing and mortgage rates. Diana olick is live in washington. Hi, diana. Reporter hi, mandy. I was getting all these alerts this morning that rates could rise on the jobs number and the stock selloff. But things settled out since then. Lenders dont move rates as quickly as the stock market moves, not by far in any case. The average rate on the popular 30year fixed has been hovering around 4 . Still historically low but we did see the huge spike in mortgage refinance applications last week when rates moved just. 8 lower. Were not far from it but that could change this afternoon simply due to the timing. Lenders put out their rate sheets mid morning which was right as bond markets were selling off. That would have resulted in their rates being a bit higher than yesterday. But since then, bond markets have bounced back. Some lenders in just the last hour have started making Rate Adjustments lower. So on that note, borrowers though are much more keyed in to these very tiny rate moves. Why . Because a lot more people now have a lot more home equity to tap in to using a refi. Millions coming up from underwater. Well talk about that in the next hour of power lunch. Back to you. Diana, thank you very much. Nearly 100,000 oil and gas jobs have been lost since the beginning of the year and that number is likely to go higher. This week conocophillips announced a big round of layoffs. So what is todays jobs number saying about the health of the oil economy . Morgan brennan has some clues. Its a he ns not good. It is no longer oil and gas jobs getting cut. The commodity crunch is rippling out to other industries. More on that when power lunch returns. Welcome back to power lunch. Lets check out whats happening first of all with the markets. The dow is down by 300 points so far near its lows of the day. Consumer discretionary stocks the broader sector in the s p, but still down by over 1 . Among names helping at least prop things up relatively speaking for Consumer Discretionary, shares of dollar tree as well as l brands and Dollar General as well. I like the way you always find the bright spots for us in this generally down market. The dow currently down at session lows, 332 points to the negative. Lets see how the bond markets reacting to the latest jobs report. Rick santelli. The great old pictures with bob hope and bing crosby. But the road to normalization holds very little for stock holdings. Look at the yield curve, 10s minus 2s flattening. They are looking for some fed activities. 30s versus 5s. Flattening on what was perceived as weak data. Stock market continues to go down. Look at a 30year. That tells you the whole range. We failed to get up to 3 but 2. 75 on the bottom of that chart is where we settled last year. Thats holding. When it comes to foreign exchange, it is all about the euro for the last couple of weeks. You see on this twoweek chart, they definite. Ly pull the rug out from underneath it. Dollar index somewhat back in the middle of the range and were all idling to see how the calm ever this weekend plays out next week as we get closer to the fed. Well, stocks are down right now, the dow down 330 points. The best performer on the dow is apple. It is only down 1. 4 . Theres your best. The worst, Goldman Sachs and jpmorgan chase. The dow down 8 in just one month. It is now down 12 from its high, 10 for the year. But we found one stock that could help you ride out this turmoil. It is up this week, this month and more than 50 this year. It is not up today. It is not a tech or momentum. What is it . What are we talking about . Stick around to find out. Im Sharon Epperson