tv Bloomberg Markets Bloomberg September 1, 2015 10:00am-11:01am EDT
olivia: good morning everybody, i am olivia sterns. we want to get to a check of the markets. we had a selloff underway after the s&p and the dow have their worst month of decline since may , 2012. the dow is down 2%. we want to show you what is after postingil its biggest three-day rally in 30 years. it is off by 4%. that's get straight to matt miller for that. there, i am just sitting at the terminal logging into it, olivia. cominglooking at i.ssm out right now and i will bring it to you momentarily. i just have to run my fingerprint scan, and -- olivia: matt miller is logging into the terminal. the 1.1x is down to
down to 51.7 in the month of july. 51.1.m i want to bring in michael mckee, he joins me now onset. michael, a little bit of disappointment from the ism index. where does this tell you about where we are in the u.s. recovery story? big drop insaw a next bird orders for the month, which is what you would expect. the interesting thing about the most recent trade and gdp data is we do not see a fall and experts. everybody was waiting for that. we did not see a fall in exports. the production index falls. the quarters gauge is the weakest in more than two years. the fall could be related to what is going on with the
dollar. it could also be related to oil, it is hard to separate the two. olivia: i was going to ask, how much do you think the slowdown in the manufacturing sector has to deal with the wave of -- we are not really seeing a wave of -- michael: that will come in october or september once the banks do a reset and credit check of those companies. at this point, we are seeing a little bit less production and earnings from that. that may be pressing down numbers.on the ism it is important to note that we are still expanding, it is not contracting. europe is still expanding, even though some of the companies were weaker. -- countries were weaker. germany was stronger. at this point, the world is slowing down, we just don't know how much and how far it will go. that is how you get a selloff of the start -- stock market. the shoot first and sell -- and ask questions later attitude of
equity traders. you are not seeing the same in bond market. europe had the lowest unemployment markets in three years. olivia: incredibly low at 3.9%. -- 10.9%. michael: compared to the u.s., not so great, but compared to europe, pretty good. we are holding steady, we are not growing really fast, and everybody is waiting to see how much this damage is in china. set timer 17 as when they put out their gdp numbers for the third quarter. -- september 17. olivia: we know it will be 7%. michael: that is what they tell us. i want to bring in our editor, mike regan who is also in studio with us. catalyst forat the the selloff is china, what are you hearing? manufacturing the data from china but also the week market there, the shanghai
composite was down almost 5% at one point during the day. reported, the government comes in later in the session and tries to prop the market. all they could manage today was a drop of 1.2%. even with the government intervention, they are having a hard time keeping the stock market afloat. the other story is the volatility itself becomes a catholic -- catalyst for the market. tracy alloway has an interesting piece on bloomberg.com about risk-parity funds. as volatility picks up, these funds pull in their leverage. they have money they borrowed to buy assets. they pull back on that because volatility is higher than what they've modeled four. there is semi-automated trading that is reacting to signals in the market, not looking at fundamentals, not looking at eco-data or earnings outlooks. olivia: this is something i heard mike mckee speak with tom
on "bloomberg surveillance" once. as he put it, volatility is out of the bottle and it is hard to put it back in. michael: what the three of us are talking about is an excuse for the fact that markets are overvalued and people want to sell anybody -- anyway. people have been talking about a correction for years. all of the technical analysts have been saying it will be bumpy, we will have ops, we will have downs -- we will have ups. there are a few that saw this, david kosten saw this. he had a flat estimate for the s&p 500 at 2100. he said within that you will see 2170 for the first half of the year, and then volatility will pick up before the september meeting. here we are. it is going according to the playbook. said this has been a long, calm, bull market.
the process will take a long time. andre down steeply today the last week. the market peaked in may, right before memorial day. the slow roller that is gaining steam as it goes -- as a keeps going. is to be expected. as you said, this is a long, calm, bull rally. people said this era of low volatility was because of the on putting a blanket volatility giving us unprecedented security. starting to tighten for the first time since 2006 and it is normal to expect volatility to return. mike: you are used to the interest rates being at 0.25% for so long. you are used to the stock market with not a lot of
corrections. all of us out in a catches up and it may be worse than it actually is. -- it may look worse than it actually is. -- the stock market catches up. olivia: we now have the dow and the nasdaq in correction territory, even though the nasdaq is up ever so slightly. they are down 10% since their most recent peak. our question for you, how exposed is the u.s. economy with what is happening with the slowdown in the u.s. economy ? michael: it is all related. don't forget what the chinese .tocks did th a week ago, it doubled. there is confidence and wealth building into the chinese economy. that is being sucked out as the same time the chinese economy is slowing down is how i would read it. mike: the interesting thing is
that the u.s. economy is not as exposed to china as people think it is. .rading with china is 1% gdp other countries are affected by china and our trade with them is affected as well. overall, there may be a little effect, but an interesting paper produced by jackson hole last week says that the sensitivity , and particularly china in the situation, is much lower than everywhere else because we invoice on the dollar with all of these trade items. doeshange in the currency not affect us the way it does other countries. china has not -- it is not a one-for-one trade state. they are adding 30% value because we send them parts, they assemble them, and send them back. there is a change in the trade relationship. it is not a complete 100% drop as people might expect. gdp is the trade of china, have you told us to
donald trump? [laughter] michael: he is not so interested in what the facts are. tracy alloway has a good article on this today. [laughter] point out that the south korea experts data is very weak. for the -- export data. is the export data out of -- that could signal weakness. otherl: betrayed out of countries is interesting because it gives you a sense of what the global situation is. that could affect us. most people do not look at the chinese trade data because they do not trust it. you look at the u.s. trade with china and it does not suggest it is as bad as china with the united states. olivia: we have more breaking news, more economic data. construction numbers coming out and i want to get back to matt
miller who is now locked in. oliviamatt: thank you for waitie to sit in a chair. this is over .6%. beating estimates, but also rising to the absolute highest level we have seen since 2008. construction spending looks very strong here contrary to the ism factory news. it is a lagging indicator. these are numbers from july rather than numbers from august. we do see not only construction spending in the month of july up, but the revision from the previous month, .7%. it is now over a month old. well this data looks good, it is before everything that happened in china and in the markets. take it with whatever sized grains of salt you like. olivia: it is a little lacking, but is a piece of data to add to the picture of the housing market -- a little laggy.
verymckee is here with us take this together, a strong housing market, 200,000 jobs created on average every month. how much does it matter that the manufacturing sector is slowing down slightly? michael: it doesn't matter that much. if those numbers go right into numbers don'tism have an effect and we see construction of pickup, and with the car sales we see, that should be good news for construction as well. you can take the ism numbers with a little more of a grain of salt. construction spending numbers to revise. if it is high, that is good news. now, construction, which is not been, is getting bigger and bigger. that means more jobs. olivia: thank you very much, michael mckee, and also mike regan, our bloomberg stocks
today," -- bloomberg market day. where we left off in august, sharp losses. i want to go to matt miller with context on the s&p. matt: we are looking at the first day of trading for the month after the worst month we have seen in five years as some cases like with the dow jones industrial average. august was the worst month for the dow in 17 years. you some of the stocks that we saw on the green side of the ledger before the stock slide continued. it is interesting that we see a number of energy names there, even as oil comes down 5% this morning. -- the bestumbers days for oil before that in 25 years. right now, we are seeing chesapeake gaining. it is small, but still a gain. it is interesting to see a stock like this putting up green
arrows. $87.77 a share. fiat was down, 495 stocks on the s&p 500 are down, but ford is showing again today. story here is that investors have lost faith in f-150 production. we were seeing drops of 10% month after month for the f-150. the company said wait until we get production right, we have to get up to capacity, wait until we get cars on a lot because there is nothing to sell. finally, they have done that. ford sales overall up five points is percent even know we were looking for a drop -- overall up 5.6%, even though we were looking for a drop in the month of august. ford is probably the most exciting story because of the
f-150 that a lot of people have been waiting for. we also have a lot of upgrades, solar is one of the upgrades we see today. solar is actually still green -- gaining, also only five cents at $87.89. -- also airlines because of airline fuel. a were down -- they are down now, but they were up this morning. right at the open, you had american airlines up, and delta also trading up. it has come back down as oil continues to hold over. gains in the morning, and those are some of the very few stocks we can look at. those are almost all of the stocks we saw gaining this morning. the markets continue their selloff now, down almost 350 points. the dow jones industrial average at 16,182. we are only 2% off, it should be mentioned. we are long way from -- we are a
long way from circuit breakers for the index. for the s&p 500, for example, we need to see a 7% drop before circuit breakers. no concerns about that. if you are looking at the seemberg terminal, you stock after stock after stock that is being halted for trading. individual stocks only need to fall 10% in five minutes before circuit breakers are kicked off. they are held for five or 10 minutes before other exchanges are free to kick them off if they like if the original change that caused the circuit breaker has not done so. you see stock after stock after stock being held this morning because a lot of them are taking a 10% dive. olivia: why do we show you some of the biggest losers in today policy session. today'su for that -- in session. thank you for that, matt miller.
you are looking at the worst-performing stocks and best-performing stocks in the s&p hazmat was -- as matt was mentioning. dollar tree off by 7.5%. treeport down. netflix down 7%. netflix was supposed to be one of the big momentum stocks. we will look at the dow in a second. you see any rhyme or reason about what is going on? michael: it is striking to me that you are not necessarily looking at one sector or industry that is leading in. they are scattered across materials, energy, financials, industrial. it is a sort of get into the market, get out of the market quick. it is clear that this is the typical risk off day when people are selling whatever they can. to me, the big question is will we go act and count the lows we had last week? 50 points off of the s&p 500 low and 500 off of
the dow low we had last week. will those lows hold is the question that remains open. olivia: indeed. right now, the s&p and the dow are down. if you go to the eternal for just a second, you see the best and worst-performing stocks in the dow jones. you see every single blue component. the best-performing are down 1%, the worst-performing dow stock is excellent down 3% followed by jpmorgan and general electric. you see a lot of financials, banks, and energy stocks. whatever it is, people are dumping those sectors and really just dumping everything. it is a market that has become detached from your fundamental buying and selling. the volatility that has been thrown into it like a rock
thrown into a pond, the ripples are still going out. when it stopped is anybody's guess. olivia: i want to bring in peter tchir. great to talk to you this money. when i spoke to you last week, you said you expected to see this volatility return. would likely see another 2% drop on the indexes which is what we are seeing this money. do you want to come in now or wait on the sidelines? last week, we saw signs of capitulation and fear which today, we are not seeing a. people are wondering what the time is to buy. olivia: what do you think is the catalyst for today's selloff? is it the manufacturing numbers out of china? peter: maybe that is a catalyst,
but one thing that we continue example, today, you are going to the bigger gains and losses. chesapeake is up, but that is edobably a very short stock. on the other end, nothing's is doing poorly. some days are up with oil, some days are down. treasuries are another area true we have not seen that risk mode. if we were trading real fear, we would see equities where they are but treasuries up higher. there is an unwinding going on and it will last longer than people think. i think we will go back and retest last week's flash crash lows. big: does it feel like a meltdown of quantitative funds that we are now unwinding. is that what is going on? peter: i think what is going on
is the risk-parity funds. 16 when the other zags. they are not thinking and zagging like they used to. that is a problem. another basic strategy of heightened liquidity is forcing them to shorten. that is why you are seeing shorter names doing better than longer names. they are being told by risk management, you either need to shut down the risk a little bit, buy back a little bit of what you own, by a back a little bit what you are short, sell what you own. we are seeing continued volatility and i think it will test back to the lows. olivia: how much of the volatility we have seen today and the past two weeks is a function of automatic mathematical trading, quant funds, and how much of it is portfolio managers getting their brokers on the phone? peter: i think it is the former.
it is stop-loss driven. algorithmsggering into finding those stop-losses. it is bringing us through the stop losses which brings out momentum. i think there is relatively little retail participation. this is a very professional, institutional trading environment. that is why it is so volatile. these programs that do kick in, they don't care about volatility, they just care whether the next up is up or down. olivia: maybe that is why there is a deterioration in sentiment. peter: i don't think the underlying sentiment has changed much, i just think we have gotten offsides and you are going through a correction. it will take long to -- it will take longer to go through this rebound. once we clear this, it is smooth sailing to go much higher into year end. olivia: i know you said you wanted to sit on the sideline for now, but if you do want to
put your money to work, is there anything to look at out there? peter: i continue to look at energy names, high yield -- things that let us down. you have high-yield for example, etf. the senior secured assets, you're getting decent yields once again. people have been complaining about no yield, no yield, no yield. you're finally getting yield. i think you can do some nibbling there are either on the energy equities where you take small positions or large positions in the high-yield fixed income funds that are trading up. thereof closed funds out are trading at 15%, 60% discounts. i think you should -- 16% discount. i think you should scour the universe for what has been beat up and get a portfolio there. mike: once the stocks worked their way through the system, the average estimate we track your a bloomberg -- that we track here at bloomberg for the
close, is that a fantasy? peter: i believe that to actually get there, we need defense to act and get -- we need the fed to act and get us off of zero. once they hike, people will get comfortable. olivia: we will have to leave it there. thank you very much, peter tchir joining us there on the phone. michael regan will join us more on the selloff when we come back. don't go away, this is "bloomberg market day." ♪ . .
and that's what we're doing at xfinity. we are challenging ourselves to improve every aspect of your experience. and this includes our commitment to being on time. every time. that's why if we're ever late for an appointment, we'll credit your account $20. it's our promise to you. we're doing everything we can to give you the best experience possible. because we should fit into your life. not the other way around. welcome back to the bloomberg market day. i am olivia sterns. we have a cell of once again -- we have a selloff once again.
nasdaq and the officially in correction territory. that is to say they are off 10%. all 30 dow components are in the red, all 10 sectors in the s&p are lower. energy and financials bearing the brunt of the selling. the doubt is just off it session lows. some --quickly show you new coast guard icebreakers in the polar region. the president is on a three-daytrip in alaska to get a theer -- bigger foothold in arctic. he says that climate change will define this century more than any other challenge. obama: human activity is disrupting this climate. this once distant threat is very
much in the present. the climate is changing faster than our efforts to address it. olivia: temperatures in alaska are rising twice as fast as their global averages. now to phoenix -- there are reports of downed power lines storms.s after monsoon there were no immediate reports of death or serious injuries. and chrysler has kept the winning streak alive. the north american unit says sales rose 1.7% for august. aalysts had predicted decline. they have gone up for a whopping 55 straight months. the big three surprised by increasing sales. trucks ande way with suv. and general motors, their part fell, but not as much as
expected. they boosted the outlook for full-year deliveries. all automakers sing a boost from cheaper gas. overnight, we got more disappointing news from china. the official factory gauge fell to the lowest level in three years. it came in at a reading of 39.7. that was down from 50 in july. of course, numbers below 50 indicates a correction. closednghai benchmark down 1%. here to make head of the numbers, simon mail, and still on the phone, bloomberg stocks editor mike reagan. thanks for coming in. we're seeing the a guest equity -- the biggest equity selloff, is this the hard landing we are all afraid of? simon: i do not think it is a
hard landing. we have seen the weakest numbers in years. the question is whether they have the tools to combat it. we have seen five interest rate cuts since november last year. we have seen growth at the same time fall steadily. will work if you have companies that want to borrow and invest. what you have in china is a situation where there is weak external demand, week internal demand, overcapacity and many injured -- industries. you will not invest simply because money is available if you're in an overcapacity situation. the over concern is on the demand side of the equation. in the west, we are used to seeing lower interest rates as a stimulus. people pay less on their mortgages, pay less on their credit cards. not in consumers are debt as leverage as much as u.s.
consumers -- olivia: not yet. simon: not yet. you have the situation where you have an enormous economy going three massive transition. you also have an economy steadily deregulating as well. that raises the question whether the government can indeed direct the economy the way that they wish. i think there are valid concerns all the way around, yeah. olivia: what does the government need to do to stabilize the selloff? ,hat steps do they need to take whether it is fiscal or monetary policy? in terms of the economy, they are doing the right thing. what you'd you do not want to do is create a massive double like in 2008. they are very, very wary of that. i think they're doing the right
thing. they are taking gradual steps to see if those are working. i expect more cuts in interest rates. they're also doing the right thing in other, bigger picture measures. financial liberalization. these things can work. but the not going to happen overnight. the market is very impatient. they want to see the results. it's not going to happen. it will be a very slow transformation. in terms of the market, my own opinion is the best thing they can do is step back. the intervention we have seen so far -- olivia: they should not come into by large-cap equities? imon: i think in the long-term that will be counter productive. it's just going to scare foreign investors. if they are trying to support the stock market, i think that will scare away foreign investors. mike: a lot of people are skeptical of the official
statistics that come out of china. should we be? are there other metrics to look at? what is the best -- power usage. usage is very useful. but they are indications of an economy being in manufacturing lead. when you go to a consumption and service led economy, power usage and cement are not as relevant. olivia: power numbers show growth of 4.5%, correct me if i am wrong? simon: i think it is even weaker than that. i would need to go back and check the data. we simple he do not know. there's a lot of skepticism around the unemployment numbers in china. have as implausible you slowdown in manufacturing, and yet there have been no layoffs. we need to look at the
direction, right? we have seen deceleration, but we are starting to see stabilization as well. at what level, i can't say. olivia: is this the bottom? simon: i think things will slow further. in cuts we started saying november could take 12 to 18 months to beach rue. that's the point. the chinese government does not want to over stimulate. they are trying. see growth continued to weaken. gold jumping to a one-week high. a lot pointing to equity selling off. down.posed is the slow -- is the slowdown? my main question to you is
this -- how much is this big drop in the stock market, that paper wealth being pulled away -- is that a big concern, or is it money that, imagine a money that is not affectings confidence too much? simon: the people who lost money or not a meaningful part of the overall economy. they are the wealthy people in china. they are the ones buying bmw's. olivia: we also hear that there are people who have not gone to college getting stuck tips from hawkers on the sidewalk. simon: that's true. havenk 6% or 7% of people stock trading accounts. there's a very valid reason to be concerned about luxury consumption in china. the wealthier people are the ones losing money. there were reasons to be
concerned before. there were reasons to be concerned about the anticorruption program in china. question,tion -- the is there reason to be concerned about broader consumption in china, not just the luxury level. so, i think -- the crackdown on conspicuous consumption for the middle-class consumer? vista gold people were not involved, yeah. there reason to find optimism and the fact that manufacturing is growing because what everybody says china needs is for the economy to rebalance, for there to be a greater weight on services, which are still expanding and less weight on manufacturing. maybe this is all a healthy it is aing? simon: healthy rebalancing. to go back to your point on
climate change -- china has been very keen to reduce greenhouse gas production. they have been deliver lee curbing production -- deliberately curbing production. yes, it's all part of a transformation. i agree with that. the question is, the markets are very impatient, as i said before and this will be a long-term transformation. we are going to see some pain before it comes out the other end. payingre they essentially donald trump and china? simon: i do not know. he is certainly known. say they could tell of the factories to turn off the tap for a parade this weekend. simon: that is a concern. olivia: on thursday. simon male, appreciate it very much. , arehank you to mike regan
people for a long time, china is taking our jobs. be careful. we have nobody who has a clue. olivia: you are probably familiar with that refrain. the donald claiming china is a powerful threat to bring the u.s. economy down. our columnist takes a different tack in a piece he wrote for bloomberg view. huge saying china has holdings in the u.s. treasuries and the u.s. is the one that has leverage over china. for more, i want to bring in my alix steel who'll be joining us for the next hour of market day. this is a pretty convincing argument. china is not going to sell off treasuries, if they do, rates will rise in the u.s., that will be bad for the u.s. economy and in turn for china, and another reason -- where else are they going to put their money? the giant -- the u.s. is the
largest, deepest market and they're not many other opportunities. alix: not only that, but they do not want a freefalling currency. yuan.o want a weaker if you want that, you have no choice but to buy treasuries and sell the yuan into the marketplace. if that is their currency policy, they have to go to treasuries. they just have to measure that decline. i wonder why none of this has gotten back to donald trump. alix: i'm thinking maybe he does not have a currency policy expert to advise him. do is point -- i never thought i would hear myself say that -- there was a deutsche bank analyst. they terminated quantitative
tightening. backit matter if they pull in terms of in treasuries? that is defective tightening for the rest of the world. olivia: i just said michael mckee on, and he was pointing out that actually the u.s. chinag relationship with is 1% of gdp. there is fear mongering out there for what is actually not really -- this narrative that china is holding the u.s. hostage is really not the case. alix: quite frankly, if china at needs to hold a country hostage, it's really australia. if there is a slow down, they really get hit. that's a real, tangible way of quantifying how important a country is. steel, thank you so much. she will be back for the next hour of the bloomberg market day. to what isead back happening in a goodie markets. let's start in asia -- excuse
me. now we want to go over to europe. that is where my colleague mark barton is standing by. mark: china dictating the mode. it certainly dictated my mood when i chose my tie this morning. a for manufacturing fell to the lowest level in three years. the carmakers, the miners, they lead the declined today. do not forget, globally, $5.7 trillion. they topped the value of equities in europe. decline in monthly four years. it's not just about china. it's about data closer to home today, olivia. we have had manufacturing data out of france showing contraction. manufacturing data out of germany showing improvement. manufacturing data out of the eurozone still above the 50 level. -- eurozone also followed
falling to the lowest level in three years. want to show you the euro against the pound. that is after manufacturing data in london came below as -- estimates. the euro has risen before this weeksor four consecutive against the pound. investors are dialing back expectations as to when the bank of england will raise rates. they are now thinking it will happen in september next year. levels to finish all with the bond market. it is the 10 year yield in defending the most, down two basis points. that finish with a chart tells the whole story today. every single sector is following on the stoxx 600. red is the color do your -- red is the color du jour. i also chose a red tie
this morning, mark, because of what happened in china overnight. the worst august for the dow in 17 years. we are seeing big drops on the s&p and nasdaq as well, being led down by financials and energies talks, because oil is also dropping. let me show you something else in my terminal dan curtis just pointed out to me. incredibly interesting. these are the months of the year . it is called a seasonality in august, the drop is -.61%. .62%. a drop this year of years.st august in 10 in september the average move is 4/10 of a point for a gain of 2%. obviously there was a drop of 9%
and then october, 17%, but in september you typically see again, at least over the past 10 years. we were down 10%. over the last decade, we see again in september. i thought this was a really good chart. you can use this with any index to show seasonal changes. very fascinating stuff. things very much to dan curtis to showed me that function. now, take a look at what is going on with this selloff. investors seeking safe havens. i hate to use that term, but i will on a day like today. we are seeing a big move in the tenure yield coming down five basis points. actually the biggest move in that we export u.s. treasuries, yielding 2.17%. oil also seeing a big move today. what is the opposite of a dead
cat bounce? i guess if you drop a cat after it has been thrown up in the air. you would expect oil to move down, but it is a big move down. that's obviously one of the things driving -- and i want to quickly finally point out gold. we have a big move up. i know it's not huge, but a lot investorswaiting for to piland. it does not seem to be happening, but we are at the highest levels we have had. olivia? olivia: i am trying to visualize the trajectory of throwing a cat into the air and how that would contracts. matt: we can try it during the commercial break. olivia: let's not try it. i believe oil has the biggest move since the iraqi -- matt: in 20 years, since the iraq war. olivia: i want to bring you
breaking out in his. honda sales for the month of august fell by 6.9%, a little better than estimates for a decline of 7%. a morning we have seen relatively strong numbers coming out of the auto sector and we will break that down after the break. it looks like light trucks actually beating estimates. cars are the weaker spot for honda. up next, a breakdown for the auto show and what it tells us. don't go away. ♪
0.7%. here with me, the executive vice president of industry insights at true car. are still seeing a seasonally adjusted rate of 2.4 million in august -- olivia: that is huge. larry: it is huge. when you break down these sales, the strength of august at 17.4 million, it's really driven on trucks and suvs and the luxury market. olivia: why is that? cheap gas? larry: a multitude of things. cheap gas. consumer confidence. gdp. olivia: what is the outlook now? do you think the auto market has peaked? will be another
strong year for us. six years of continuous growth. we do continue to see growth over the next couple of years. as long as the economy seems to stay strong, we continue to see the growth. olivia: chrysler, 65 straight months of auto sales gains. what are they doing right? you know, their product portfolio -- the trucks, the ram trucks, the jeep -- jeep has been a tremendous brand for them. they continue to run with segments that are popular now. olivia: unfortunately, it is not my favorite. thank you so much, larry dominique. much more coming up on the bloomberg market day. the dow down three and a points. a markups -- market selloff going on. ♪
the yuan -- we will hear from an expert who cautions against currency pay. olivia: itunes, i tv. out amay be rolling series from apple. turkishd the only company listed on the new york stock exchange. olivia: good morning. i'm olivia sterns. alix: and i'm out still. we are 90 minutes into a very volatile trading day. olivia, i thought we were done with this. olivia: september, we were going to start over, but once again economic data coming out of china since the market into freefall. the dow is down more th 3