Ugly at the moment, but you can also throw tech and Energy Stocks in there as well. All of them are leading these major indexes lower. This after europe sold off in a big way early this morning when many of you were asleep. The s p 500 at this moment is looking very weak, down 467 points 46 points, thats a 2. 5 loss, on track for the lowest close in nearly two years. The nasdaq is getting smashed any way you look at it, trading at its lowest levels since october of not 2015, but 2014. Todays selloff follows a hammering last week that culminated in paper losses of some 800 billion for a lot of you out there combined. Now, you cannot only blame oil on this, but we should tell you once again it is one of the catalysts for a lot of the negativity here, dipping below 30 a barrel in the aftermarket session. Were till there, six cents below 30 a barrel at the moment, but wait until you see the screaming signals were about to show you from bank stocks to treasury yields. Weve got it all covered live here from the floor of the New York Stock Exchange with all of our traders and experts. Plus, the bond kick is here, bill gross with us live. He is pointing a are sharp finger at what he says is now to blame for what were seeing today and what he says were about to see. You need to hear what bill gross has to say. Were just an hour from the closing bell but hours away from those first votes in New Hampshires primary. While the latest poll shows donald trump has a really commanding lead, it is now the second spot that is in serious question as one candidate makes a major move, a significant move. Our Political Panel tells us who might win that race for second place. Chipotle stores, finally opening their doors at this very moment. They have been shut most of the day in order to train staff on food safety issues. Will the burritos for all help the stock price . Adam shapiro on that. We are less than an hour to the closing bell. Traders here on the floor of the New York Stock Exchange are bracing themselves for a why would 59 minutes, so lets start the countdown. Liz breaking news, we are enduring what appears to be an extension of last weeks selloff and global rout in stocks. Again, last week it was technology and financials, this week its a whole bunch of other issues. But the Dow Jones Industrials right this minute, we are down 352 points standing at 15,851. There is very little that is working today. If we were to point to one thing, the obvious thing is gold. The gold bugs are doing the bull dance at the moment. The precious metal pretty much the safe haven of the moment along with treasuries. Well get to that in a second, but gold is up more than 3 today. This, what youre seeing on the screen, is the biggest rally for gold at the moment, up more than 37 in more than a year. It may be the year of the monkey no, not the baby puppy monkey from mountain dew, but the actual year of the monkey. Investors are dead serious about preserving the capital they have, and in doing so they are rushing into treasuries. The yields are plummeting at this moment. The yield on the tenyear, 1. 74 . Yes, thats what we have at the moment, 1. 74 . Thats the lowest in a year. So that is a big safe haven move at the moment. And the mighty greenback is actually getting trounced by the yen, but that thats less a stoy about the dollar and the yen, moving Interest Rates to negative percent. So the dollar is hitting a 14month low against the yen, but you can sees the a mixed picture elsewhere. We do have a little bit of strength in the greenback. If you had to point to one thing, folks, it is financials at the moment. When you see that the dow is down 340 points, its financials worldwide that are dragging down todays global markets. Overnight we had a real serious situationing when it came to european stockings. The european stocks index, stoxx, is down some 20 so far this year, but the financial stocks, 600 stocks in europes world down 24 over the past year, more importantly, down 5 overnight. The entire street buzzing about yelp. Did you hear about this . Earnings were accidentally released in a mispunch to the market too early. Yelp earned 11 cents adjusted on revenue of 153. 73 sorry, 153. 73 million. That did top estimates, but the stock is dropping after yelp announced that its cfo is out. This is the guy whos been with the Company Since 2011, so people dont seem to like that news, yelp trending down by 11 . Lets get to the meg story right now megastory, it is the financials that are floundering today. Banks are the biggest laggards on the dow. Goldman sachs, citigroup, bank of america, all of them are getting hit very hard at the moment, but also important to keep an eye on, two names in particular for the european financials. I mentioned the financial stock index, this combines 60 to 0 european financials down 5. 5 overnight, down 24 over the year. Names like Credit Suisse and Deutsche Bank, you can put those two up. Those two names are trading at levels below the levels that we saw at the height of the financial crisis, 2009. Thats scaring a lot of people, folks, they do not like to see this. Traders here at the New York Stock Exchange, stephen guilfoyle, ira epstein at the cme, luke at the nymex. But first to yo i and to you and, by the way, steve, you said theres so much ugly up there, its hard to pick out individual names. It sure is. You said the financial sector, you mentioned tech. The consumers unhealthy, but whats really unhealthy is the material sector. With a weaker dollar, we should see outperformance from that sector, and its just as weak as everything else. Its a flight of quality, and that quality is gold and also treasuries. Liz gold has not been quality at all though over the past year. Thats changed a little bit. Its up at 1200, gold has turned. In my morning note today, i raised my allocation to gold which was 25 ago. Liz oil is falling, so when oil or at least crude demand is a barometer, luke, health of the world suddenly this is a bad thing that people are seeing at the moment. Why did oil fall today . I know theres a story involving a meeting between saudi arabia and venezuela that yielded what, nothing . Yeah, same old story, a lot of meetings meet but meetingo decision on whether theyre going to get together or not. Another thing we had was rumors about a Company Looking to restructure, chesapeake, so that scared a lot of people. European open was ugly, and oil went below 30. Thats not good news. That 30 level is a big psychological level, and when you talk to bill gross, i wonder if he talks about demand being pulled forward with all the easy money the last three or four years and growth being zero or near zero for the next three or four years. Liz again, and we do remind you, thank you, luke, for bringing that up. Bill gross is going to be joining us in a few minutes. When you see this behavior on not so too much of an individual headline, stephen, that becomes worrisome. All the macro has been terrible, and the friday jobs report was pretty awful also. I think its fair to say were headed for at least one quarter of negative growth in this country, whether we hit the textbook definition of recession, i dont know. Liz ira, i need to find out from you what you see from the pits at the moment. Last we checked, everything was really down. Yeah. The flow is to be buying pons, notes bonds, notes. Its selling in the s p pit pretty aggressively, and traders are scared. But this is just like the First Quarter of 201415. We were down, and if you go back to what you and i were talking about, liz, things were ugly. I this i think theyre going to be ugly this quarter. I dont think theyll be quite as ugly the quarter after, but theyll be ugly. Maybe the second part of the year is where we get better. We have to understand these negative Interest Rates, they are a culprit. Theyre not a fix. Theyre a real bad negative. Theyre pulling our Interest Rates down, thats why the financial sectors getting hit. The fed couldnt have had worse timing on a december rate hike, seven months earlier, maybe, but when they did it, its had no impact at all, and that is scaring traders bigtime. Liz okay. Well, were going to get more clarity in just a second from bill gross, so i want to thank all of you guys. I know its a very busy day. Dow is still down 328 points. The russell, small and mid caps, down 2. 5 , lower by 24. So were seeing that flight to quality in major proportions, so we said, what do we do . We call in the guy known as the bond king, bill gross over at janus. Hes going to tell you a couple of things. Number one, his biggest fear at the moment. Number two, if you have to choose between gold, dollar, treasuries or nothing, where would you put your money in a safe haven at this moment . He is going to give you the exact answer. I dont know what it is, thats why im staying tuned for that. And the fed, will they even continue raising rates at all for the rest of the year . Bill gross coming up, countdown to the closing bell, weve got 50 minutes before that closing bell rings on a very rough day for trading. Stay with me, im live from the floor of the New York Stock Exchange. This just got interesting. So why pause to take a pill . And why stop to find a bathroom . With cialis for daily use, you dont have to plan around either. Its the only daily tablet approved to treat erectile dysfunction so you can be Ready Anytime the moment is right. Plus cialis treats the frustrating urinary symptoms of bph, like needing to go frequently, day or night. Tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. Do not take cialis if you take nitrates for chest pain, or adempas for pulmonary hypertension, as it may cause an unsafe drop in blood pressure. Do not drink alcohol in excess. Side effects may include headache, upset stomach, delayed backache or muscle ache. To avoid longterm injury, get medical help right away for an erection lasting more than four hours. If you have any sudden decrease or loss in hearing or vision, or any symptoms of an allergic reaction, stop taking cialis and get medical help right away. Why pause the moment . Ask your doctor about cialis for daily use. And for a 200 savings card, go to cialis. Com ask your doctor about cialis for daily use. Hiim here to tell homeowners that are sixtytwo and older about a great way to live a better retirement. Its called a reverse mortgage. Call right now to receive your free dvd and booklet with no obligation. It answers questions like. How a reverse mortgage works, how much you qualify for, the ways to receive your money. And more. Plus, when you call now, youll get this magnifier with led light absolutely free when you call the experts at one reverse mortgage today, youll learn the benefits of a governmentinsured reverse mortgage. It will eliminate your monthly mortgage payments and give you taxfree cash from the equity in your home and heres the best part. You still own your home. Take control of your retirement today liz well, now, this is interesting. 45 minutes before the closing bell rings, weve lopped 100 points off the lows of the session, the market appears to be trying to crawl back. Dow jones industrials down 307, the low before down 401. The markets in general trying to come back here, because the s p low was down 52, were now down 40. Listen, a loss of 40 points is still very significant. We need to note this at the moment, the force is strong with hasbro today, the toy company. Better than expected earnings in very large part due to the force of star wars. The star wars brand and, of course, theyve got all of that ability to sell those branded toys, is bringing the markets at the moment at least for hasbro barely higher. So thats a big jump when you look in the aggregate of what the rest of the market is doing. Now, on a day where volatility is spiking anywhere up by 14 , bonds are obviously the bet to be made. When you look at the yields for the tenyear, it is now at levels we havent seen in a year. It is so unbelievably low. At one point, what is it, 1th 74 , guys . I cant see the board yet. Anyway, what is the most respected name when it comes to bonds, its bill gross. Hes now at janus capital, hes joining me now. Bill, im glad youre here on a day when the tenyear yield is dropping so precipitously. Right off the bat, is that the play you would recommend simply to preserve capital versus get return on capital at this point . Well, certainly. Even at 1. 7 , you know, thats a positive return, and the question becomes, you know, do bond prices continue to go up reflecting lower yields, or do they go down reflecting higher yields. I think the fed, for instance, in charge of the treasury market basically has so to stay where it is or maybe even lower Interest Rates or have a renewed Quantitative Easing Program at some point. So a treasury tenyear yield at 1. 7 on a longterm bond, you know, basically are relatively safe certainly from the instant poind of principal and i think from the standpoint of market price as well. Liz am i hearing you correctly . You feel it is possible where the fed is put in a position where it has to take back that quarter percent rate hike they put in in december . Yeah, and i think its going to be difficult for them to do that because theyve been walking up the expectations for several years in terms of raising Interest Rates. But its obvious that on a global basis, and the United States and the fed, you know, is the global banker for the world, its obvious that an increase in Interest Rates has dramatic repercussions in terms of risk as is sets, equity prices and global bond prices. So i think at some point theyre going to have to rerethink what theyve thought for the past several years. Liz weve got this massive selloff in financials. As they go into a tail ship, whats at work here tail spin, whats at work here . Net interest margins, theres so much pressure put on . Banks actually like when Interest Rates are higher, for our viewers that dont know that, so they can get more money on that, but it doesnt look like thats happening at all. Yeah, i think thats right. Obviously, theyve extended loans and we dont know how many and how much to energyrelated commodity producers on a global basis not just here in the United States, but european banks as well. Ive heard mention that Credit Suisse and Deutsche Bank are at relatively significant lows. But the Net Interest Margins that you mentioned, a bank and an Investment Bank needs a very positive yield curve. They need to borrow short and lend long at a decentlywide spread in order to make the margins and the money that theyve made historically. And when they dont, when the yield curve come presses and that margin doesnt exist, you know, bankings are having problems. Liz yeah. Its a twofront type of war at the moment. Liz bill, i hate to invoke the r word because im an optimistic person, but are we going to go into recession here in the United States . Not because things are so horrific here, but because globally we have a slowdown that seems to be very tied to what were doing here in the United States . Recession or not . Yeah, i think in the United States we can stay above the line on a real growth basis in this particular quart or, maybe in the next quarter. Whats important to me and i think what should be important to central bankers is nominal growth. They want not only real growth plus inflation, and, you know, its important in the United States to grow by at least 4 nominally, thats real growth plus inflation, and weve only been growing by 2. 9 . I think its fair to say we might have a nominal growth recession over the next 612 months. Liz you said last week in your note, youve got to stick with plain vanilla if youre going to be safe. Let me throw these choices out to you the greenback, which seems to be doing relatively wall, treasuries or bonds, even gold that you would say, okay, park it there, thats plain enough for you . No, i think treasuries are very plain vanilla in the five to tenyear maturity area. Gold is subject to the whims of the marketplace so to speak and to a further decline in Interest Rates. You know, risk assets and even the dollar, i think at this point if the market believes that the fed will stop raising Interest Rates and maybe at some point like im suggesting, you know, begin to move in the other direction, then the dollar could be weak relative to the yen, to the euro and some of the stronger emerging market countries. So i wouldnt be investing in the dollar at the moment. Liz okay, yeah. That would be counterproductive if the fed has to put the brakes on, youre saying stay out of the dollar. I have to then turn to just the worry overall for you. What worries you the most that people arent watching but should, bill . Well, that i think its china, and you and others have talked about china add infin tunnel for the last 612 months. What is the growth rate in china . They claim its 67 . Im suggesting that perhaps its much less than that, and chinas a highly levered economy with too much debt relative to, you know, their cost of funds. So id be looking at china. Theyve got a weeks holiday here where we cant exactly look at their markets, but china is then engine for the Global Economy at the moment, and if china cant have significantly positive growth, then the rest of the world has problems. Liz bill, you know, we were talking in the break, and you said this almost looks like the big short part two. How so . That scared me. [laughter] yeah. I think in a way. And not from the standpoint of a lehmans crash, but from the standpoint of too much debt. Back in lehman days, the subprimes, there was too much mortgage debt, and the cost of that debt as the fed raised Interest Rates to 5. 25 , you know, w