Sell off. Will this continue. Apple stock now in the red for 2015. One week away from their event in san francisco. And nfl games go online. Netflix says its sanguine about apple competition. Theres that word again. Were on track for a green open as they try to rebound from a worst job. Ahead of the adp, 190,000 private sector jobs added. Thats a bit shy of the consensus. Manufacturing, 7,000. Its being called a relatively solid number heading into a print that is historically weak on friday. You wouldnt tighten based on these, and i know, i regard the tightening camp as basically of two components. One says lets get it over with and the other says lets get it done. No one is saying the data says to do it. If the data depends on stabilization of the markets, we dont have it. The numbers are benign. The Mortgage Applications were good. Housing and auto are the two bright spots. If you want to tighten on housing and auto, you have maybe 25 of the economy that you can say is a little better. That meechans you have the othe 75 thats not that good. For last week, which includes a lot of the volatility, up 11. 3. Refie is up 17. Some people are trying to argue that means the consumer at this point, not, their behavior is not being adjusted by the volatility. I think the consumer feels like this is your last chance. Its finally seeped into the great culture that were going to have higher rates. If you have a mortgage banker or talk to anybody in the housing business, what theyre saying is this may be your last chance to refinance. It might be before things start floating up. These are healthy numbers in housing. Housing 10 of the economy. Were not seeing anything else to me that would justify as tightening other than the fact that a lot of people are saying lets get it over with. Theres a new camp that says it would be good. That camp, i dont want to describe that camp the way i would off camera. Theyre misinformed. But theyre nice people. Theyre very nice. You took the words out of my mouth. Yesterday we talked about the list and levels on various names you wanted to see. Did we get there by the close last night in. No. There will be some technicians, i have two drafts lists, my football draft lists, and then i have my s p 500 list. This is a list of the stocks, the s p 500 their low that they hit on monday or tuesday, and how many took out that low. 77 took out that low but only 30 were more than 1 . So there are probably people here, this is a technically driven market which tends to happen when people dont know what to do. That would be regarded yesterday as a successful retest of monday and tuesday, we didnt take out most of the lows. We took out 30 lows. Many of them i could argue were aberrations, but there will be some people who say we hit the bottom yesterday. Im not of the camp that you hit bottom, not hit bottom. I think its a rolling bottom. That was a successful moment. Most of the stocks i was looking at to be able to buy for my Charitable Trust never hit it. They didnt hit the levels because they didnt take out the levels i was opening they would. Thats bullish for someone whos thinking i have cash i havent put to work yet. We do have bill gross today echoing what others have said. You have to be building cash here. I think you to start applying cash now. You have to start applying cash. If we didnt take out all the lows, youre going to get an unemployment number, my problem is when you have a really thin having run a trading desk. When you have a thin market like this, its almost impossible to buy on an up day. Because the futures are so in c control. Yesterday was a day where if you run 20 billion, you had to be bidding. If you go in to buy mcdonalds, you want to buy 2 million shares of mcdonalds, youre going to move it right now, so you have to buy it when the futures are at the worst. You move it up a dollar if you buy it. Mr. You move it up a dollar. I used to be a block trader. When i saw how little mcdonalds moved, i realized if i went to an equal weight on mcdonalds and ran a lot of money, i would take it to 95. 5. The only time you can buy is in big downs. Thats why people are buying today. Theyre afraid the big institutions didnt get to buy when they should have if they didnt want to move the market. Big institutions are afraid of moving stocks. The only time they can buy are days like yesterday. Not like days like today. No. Just watching the tape like everybody else, lets say i wanted to buy a million shares of tesla. Ill offer you 200,000 at 260 to finish the order. People buy 500 shares at home. They dont understand, youre going to be moving a stock if youre putting in a regular order today. This is interesting. So what degree of the volatility, the last ten days do you think is because of this dynamic, this idea that there are a few people on the floor . At a big trading desk, theyre also afraid of committing capital means that if you want to go and buy, lets take a stock thats much less volatile than a tesla. Lets say you wanted to come in and buy ibm. They would sell you on a day like today, they would say you want to buy one million shares. Theyd sell you the first 200,000 the stock was at 142. 5. And now they look at the futures and say ill tell you what. Ill say 100,000 at 144. 5 and ill work the rest of the order trying to bring in sellers. But they cant. They say i have a buyer of ibm. Yesterday you were a seller of ibm. Now the guy says its up. Look at it. At 146 ill offer it. Thats the way it looks. The futures were down, but now they have ibm not were sale because the futures are up. Thats human nature. Human nature is frail. And thats why you see such volatility. Its a big reason why youve been thinking about the market the way you have been. Yes. Were going to get to the upgrades, and there are a bunch today in a moment. But apple in negative territory. The dow component now down about 18 from the july highs. We mentioned their event is a week from next week, september 9th. Weve had tim cook on the tape. Weve had word of the new television product. All that is against this. Youre an institution. Youre usually pretty equal or overweight in apple. Its been a good stock. You need to raise capital because of the withdrawals. You can talk about how badly einhorn is doing. A typical institution is getting withdraws because the market has been freightening. They need to raise cash. The easiest way is to sell apple. Theres always a bid on apple. Everything i said about all the stocks, it does not apply to apple. Apple will say if you want to sell apple, ill buy 1 million apple on the line at 109. 90. That is like a u. S. Treasury because its so liquid. Thats the place you raise cash. Should they do that having had to raise cash in 1998, i would tell you ill sell you as much apple as you want and be a source of funds. Apple is a source of funds for big institutions who are getting large withdrawals. An atm . If i said apple is good, they would say samsung watch, my apple watch fell asleep at three hours. Rationality plays very little role right now. Everyone has the right to be irrational. If china falls apart, its scheduled to fall apart the day after the commemoration of world war ii. Thats the day they set. Not out loud. Im being fa seerks. Theyre propping up stocks because they dont want the commemoration of world war ii to be spoiled. Its a parade. 10,000 troops will march but the market is closed thursday and friday there. Thats a break. And youre right about holding the 3,000 level. Does the rest of the week look a little bit more benign . No. No. Tomorrow up. Which im working on. Its not benign. Theres no more benign. Were so focussed on everything thats negative. Now, the eighth army, which we celebrate as having been the victor in world war ii. If they all bought stock, thats the way theyre thinking. Have you noticed the buildup militarily theyre doing . You could say we arent, china is about to fight and you have to put x. War, what a great way to put people to work. Build aircraft carriers. Theres a big piece in the ft today says how do you have a more market based economy, china, while youre concentrating political power . The two do not mix. And then whether or not china can do it will be a big test. In our country, if the economy turns down, you throw out the party. In their country, the economy turns down, they have a revolution, and thats what they fight. The stakes are higher there for everything. A journalist who breaks a story who says the market is going down gets punished. Can you imagine they have fighting revolution every moment. And they live with that. In the same way that jeregerman lives with hyper inflation. They have longer memories. The party does not want to be overthrown. They say we hold the 3,000 level until after the celebration. We let the air out of the market. We devalue, which is what i think they have to do again. Hopefully they dont rede value on the same way the fed raises rates. Thats how you get out of the mess. The lower, lower, lower, devalue, u. S. Takes more of their stuff, the rest of the world, emerging markets go bad. Euro goes higher because theyre going to have to expand because they have such a migrant problem and thats how you get out of it. But remember i have china a couple days early. They let the market go down after the celebration. Yes. Congratulations to the eighth road army. The report yesterday that blamed part of the pmi miss on them shutting down the factories to clear the air for the parade which is not out of the possibility. People day from respiratory problems. When youre in a city thats basically under quarantine because of bad air, thats not a stable society. The party is in charge of the stre Supreme Court and every aspect of life. Theyre worried. They dont look worried. Its not like the old days where we can tell something is wrong because someone is deciding with joe. There used to be a group of people. The capitalist roaders. When we come back, cord cutting cvs, football and netflix. And also Jean Claude Triche tri. Dow down 9. 9 for the year. More squawk on the street from post nine in a minute. 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. Woman when a student understands a concept for the first time. Man when the students get it. Man their eyes get big, the lightbulb pops on. Woman i got it, i think i got it they light up. Its like magic. Woman this is not just a job. Woman the rewards i get are. Priceless. Man we help kids grow, and thats part of the rush of teaching. Narrator the california teachers association. Educators who know quality Public Schools make a better california for all of us. Theres a look at futures. Premarket trying to build after hitting the lows at the end of the session yesterday. Cbs announcing it will live stream two regular season games this year and make it free. And theyll stream super bowl 50 on connected devices and laptops. Can you imagine saying what i just said five years ago . I know march madness is something, but thats extraordinary. Remember, theyre all afraid that google is going to take up the international contract. Were going to move the game every weekend to international. Thats the rights there are still for sale, and this, i think is a shot across the bow to google saying were going to do that too. Were going to get it. Cbs has to do this. Disney upgraded today. Thats interesting it could bookend the bottom. Initiate. Yes, initiate. And i look at whats happening with even the most pressured of products which is the informnfli recognize that they have all this cash but all they do is buy back stock. But if google, if porat came in and said i can risk bidding on the international rights, theyre going to be fearful that google is going to take everything. They have so much more cash than everyone else. Serve scared to death. These are people i talk to off the desk. I happen to be close to the Sports Management teams. Google has talked about moon shots and diabetes research. Im just betting theres people there who now with porat who will be more grounded. Theyll put that in the alphabet soup side, and the nfl is lucrative from day one if you get it right. Just be aware that the nfl is in many ways what a lot of the things that are going on with the networks is about. Because its the gem they have. It still generates lots of people watching the show the next day, which is why this is so breathtaking. It leads into nothing, carl. You broadcast that game on the web, the next day its not going to lead into csi queens. Youre not going to want to start csi. Csi philadelphia wouldnt get off the ground if you have the game on the web. So what does that mean . Its a bad lead. I think thats crucial. By the way, opening game, nbc, next thursday, pats, steelers. Well, i dont have anyone playing in that game. I dont. I mean, no one ahead. I got branded lafel. We might get a ruling today. The judge said the brady ruling could come by the fourth. Its incredible that got to a federal court and thats what their courts spend their time on. Good use of time. Well get cramers mad dash and count down to the opening bell. More squawk box straight ahead. 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. Volatility once again the name of the game as futures are up triple digits on the dow after yesterdays drubing. In the meantime, minutes away from the opening bell. Zl we talked about block trading. This is the intellectual property behind drones and go pro. There was somebody who said i can get ambarella. The ambarella was a good quarter. The guidance was tepid. This is the line everyone is reading through. Its about go pro. Wearable camera revenues are expected to be down sequentially in year over year reflecting the release of existing products by go pro rather than what occurred last year. What happened is people are reading through this and saying theres nothing new, go pro. You kind of knew, and there is no up side surprise coming from go pro, which is new from the momentum guys and theyre going to sell go pro and ambarella off this. This is an inline quarter. It doesnt cut it because were in a bearish phase of the market. You cant do inline. You have shock. And ambarella didnt shock so go pro cant shock. Nick woodman announced the drone roughly in here. It hasnt been that long. And through the conference call, theres one guy who says i hate to beat a dead horse. That means he is. When is someone coming to wreck your drone business. Those are man eaters. We mentioned some of the upgrades. At least a half dozen. One is Morgan Stanley on General Mills. I read through General Mills. Ken pal made it more natural and organic. That was not one of the reasons to buy. Talk about the greek yogurt and the streamlining. I thought the upgrade was not that rigorous. It should have been based on the transformation that ken has intimated to me on mad money several times. If you buy it, buy it because its becoming natural and organic trix are still for kids. General mills are a buy but not for the reasons he talked about. And some cost management. It was boring. Memo to Morgan Stanley, make your research more exciting when you do an upgrade. Mention artificial. Mention annies. Be more rigorous and i will be more thoughtful about your upgrade. Coming back, the opening bell in about five minutes. 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. Sup jj . Working hard . Here at the Td Ameritrade trader group, they work all the time. Working 24 7 on mobile trader, rated 1 trading app in the app store. It lets you trade stocks, options, futures. Even advanced orders. And it offers more charts than a lot of the other competitors do in desktop. You work so late. I guess you dont see your family very much . I see them all the time. Did you finish your derivative pricing model, honey . For all the confidence you need. Td ameritrade. You got this. Youre watching squawk on the street live from the Financial Capital of the world. Well get the opening bell in just under two minutes after the dreadful action yesterday. Our producer now, today, jim, informs me that even though were in this correction territory, being a born optimist, the dow is 688 points above the recent intraday low. Weve not gotten close to retesting that. Thats why i look at my s p cheat sheet and almost no stock was down in double digits from last monday, tuesday. That is clearly held. And by the way, in terms of Something Else that held. People are really freaked out about it. Oil went down but it only repealed the gain from monday which was the real short cover game. Oil is reversed today. We have inventories. They have proven to be out of whack. We have a big surplus because were not able to export. Mexico comes in and sells the future every time they lift part of their hedging program. Most of our Big Oil Companies didnt hedge. I think they tried to hedge yesterday. Theyre going to get their chance. Those who do have finding below 40 of which some do will use the futures to be able to generate cash flow or meet bank debt. Thats important. E conoco, where did they make a push on the quarter about the dividend. I want people to watch cimerex oil company. Exc is the symbol. Watch it. A really good company. Overweight energy based on 20year valuation lows, earnings expectations