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tv   Squawk Alley  CNBC  September 24, 2015 11:00am-12:01pm EDT

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regressing towards the mean. not necessarily collapsing, but moving downward, and stocks look even more expensive. >> this corporate growth story has been the story for the last three quarters. i'm wondering why now you think investors are beginning to be more sensitive to it. >> well, it's been the story for the last ten years. the problem is in the united states most of the country just isn't getting paid enough to buy enough stuff. i mean, ultimately folks have to begin to realize that revenue is somebody else's wages. we all get paid. we all got to buy things. you want to accelerate economic growth. you got to pay people more so there's money to buy things. it's been there, and then stumbles and surprises like caterpillar and wake people up to, hey, it's still not cured. >> by the way, as we've been talking, there is the pope making his way out of that joint meeting of congress. as a busy day still ahead, he is going to visit statuary hall.
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first canonization to take place in this country. he will wave to some 30,000 people who have been waiting all morning long to see him. he will go to some catholic charities in d.c. later this morning. he will meet with the poor and the homeless. one thing about this pope, guys, is he is not spending time hob knobbing with the rich and famous. >> flying al italia and american airlines. staying in humble residences during this trip. not the normal upscale hotels these visitors normally stay in. >> let's get to bob pasani and see what's moving on the floor. >> good morning, guys. no real improvement in the markets since the open. in fact, we're sitting at the lows. take a look at the s&p 500. 6-1, declining to advancing
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stocks, and believe it or not ares the volume is moderate to the light side. we're not getting a seller's panic. we are getting a buyer's strike. i know that's no consolation, but it's an important distinction. take a look at germany. you see essentially sitting at the lows of the day. down 2% throughout most of the day, and, again, no improvement there as well. we're heading into the close here in the u.s. materials and industrials have been under pressure. really for the whole week. >> nunlt lows for ge auto honeywell. under new pressure today. there's one bright spot, and it's not helping the market, and i'm quite surprised. oil has rallied through the early morning hours, and you can see it's now in positive territory, and, yet, even in energy this is not really making
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a big difference. your chevrons and exxons, they're not down as much as the market is, but here still to the down side. apache and anadarko. oil has been a proxy for global growth. often as goes oil has gone the market. that is not really happening today, and a lot of people have taken note of that fact. have i noted throughout the last couple of days, things have been tough. janet yellen. most people expect her to say nothing particularly now, but things have changed since the fed meeting including the s&p 500 and germany. of course, on the volkswagen woes. copper and oil, notably on the down side, and, remember, carl, i'm just talking about four or five days now those are pretty big moves considering that short time span. right now we are essentially at the lows for the day. dow down 252 points. >> we'll talk to you in a bit. bob pasani. >> alibaba has to be close to the top of the list of those having trouble. on track for a sixth session losing streak. it's fallen nearly 10% in the last week. shares down 5% from the ipo
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price sfr just over a year ago. henry, we all remember that flash crash on august 24th. on that day baba -- intra-day low, 58, which is only 59 cents away from here. >> that's right. well, when the company went public, we talked about this a lot, they're in the unenviable position of having an incredibly high profit margin and an incredibly high market share. when you have that situation, your ability to grow earnings in a rapid rate is very ham strung. you can only lose market share. they looked like a mature company, and there's down side risk. the way tech stocks generally go bananas is when they are at a low margin position, and they are gaining market share at an incredible rate and leverage. earnings growth is spectacular. >> going way back in the 1990s
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when they weren't growing and then grew incredibly rapidly, their earnings growth is spectacular. because there's such amazing leverage in the business. facebook, when it was a private company. if twitter were to be able to reaccelerate revenue growth, which is a big if at this point, right now they're losing money. margins are very low. can you see the same affect there. that is what drives tech stocks to the moon. alibaba is exactly the opposite. they went public at a mature state. >> it's hard to imagine this meet not be a fantastic price. i've been skeptical since the ipo around all the hype. it's interesting.
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at this level if you believe the chinese growth story, the hilgdz class growth story, the faster acceleration, e e-commerce. this might get people interested. >> they can't gain market share. if you see an acceleration on rev 23450u, absolutely the multiple will expand. >> when you have deceleration and concerns, the margin is high, multiples tend to compress. that's where they are. the lower it goes, the more attractive it is. if you buy yahoo, you get to capture the momentum of the spinoff. yahoo would have done better taking the tax hit and selling the stake outright.
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do you have to stay away from yahoo because that is so unclear and what was the alibaba affect that was a positive affect is now really casting over that company. >> i own yahoo, legacy position from the 1990s. i won't say too much. the key for yahoo ultimately as a company is reaccelerating its core business, and everything else as you suggest is just sort of a derivative of alibaba. >> live shot of the speaker's balcony at the u.s. capitol. what a shot. 30,000 people watching. just take a quick minute to look at this. >> as speaker boehner said, former altar boy himself, this is big stuff.
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he teared up behind the electric turn. >> if you thought the president's backyard was crowded yesterday, that is a crowd of a different magnitude. 30,000 people, and an incredible image right there. >> we are getting ripple effects from volkswagen's scandal continuing today. phil lebeau in chicago has more on that. >> the scandal rose at volkswagen, and now it involves the vw being accused of manipulating diesel engines in europe. here's the latest regard this scandal. the transport minister for germany says that volkswagen has admitted to the transportation ministry in germany that it is rigging engines in europe. meanwhile, vw is planning to name those responsible for what's been happening not only here in the united states, but potentially also in europe. that's expected to happen tomorrow. also, tomorrow there will be a board meeting, and we can tell you that it is expected that at that meeting vw of america's ceo
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michael horn is expected to be announcing -- they are expected to announce that he is leaving the company. cnbc has talked with sources in europe, and we've also seen the reports out of there. he is expected to leave. in addition, two other board members at the vw are expected to leave the company. meanwhile, bmw shares have been under pressure today. down as much as 6%, 6359%. basically because of a report out of germany questioning the diesel emissions of the x3 series, the diesel version in europe and whether or not they are not meeting emission standards. we've reached out to bmw. bmw vihamently denies that there is an issue with its emissions saying the bmw group does not manipulate or rig any tests. we observe the legal requirements in each country. as you take a look at shares of volkswagen, they had a bit of a bounceback yesterday, guys, but they're once again under prosecutor. especially as we wait to see not only some of the fall-out in terms of who leaves the company, but, again, remember, tomorrow they're expected to name the new
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ceo of volkswagen. that will happen at the board meeting which takes place tomorrow. >> the dax is down. henry, people want to -- they want to argue this is an exostential crisis. >> this is a remarkable situation. the company is admitting that it intentionally sdooefd. normally when you have a corporate scandal like this, there's a way the company was looking at it that might make sense internally, and it's just outside. it's misunderstood.
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>> suddenly they realize this is going on. >> there's no fall guy, right? it's the company. it really is the company. often with scandals, here's the person or here's the department that was responsible, and at this point it just looks like volkswagen itself is in trouble. to me normally when we're talking about european regulators, we're talking about technology, but once european regulators get involved, once have you done something in europe that affects european consumers, boy, are you really in trouble? >> google can attest to that. >> microsoft too. they don't mess around. it seems to me like another -- >> others argue, no one died. that's -- unlike gm. no fatalities unless you want to take some extremely broad view regarding climate change. is that any kind of consolation? >> it's great consolation.
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>> is it survivable? yes. they make great cars. if you can change management, you can come in basically figure out exactly what happened, how it happened. say we are in a new era, huge apology to all customers and so forth. yes. >> although is intent a $6 billion plus charge when you think about gm paying less than $1 billion over its criminal settlement? >> i'm not talking about legality. what's striking to me is that the company came fashd and said we intentionally did this. the software is designed to trick people. usually you look at all the wall street scandals, libor and so fort. usually there's an internal logic that made sense at the time seemingly where -- and then on the outside everybody second guesses it and so forth. here that doesn't seem to be an argument. >> finally, business insider has been in the news. can you say anything about these reports.
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>> everybody gets very excited. you start to get emails from stock brokers, private aviation specialists. it's an interesting experience. >> we're thinking of you and watching. thanks for coming in. >> coming up on "squawk alley" betting on mobile health care. the ceo of airstrip was on stage at the last apple event demonstrating an app for the watch. now he is here at the nyse to tell us why health care is the future of tech. plus, facebook launching 360 video and big partners like star wars, gopro and vice. can it compete with youtube? pebble with a new smart watch. we'll hear what the ceo has to say about taking on competitors like apple and samsung. in a moment.
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>> take a look at the markets. major averages down close to 1.5%. the dow losing 140 points. caterpillar, the largest contributor to that. that's despite durables, unchanged month over month, new home sales coming in better than expected, and jobless claims a bit below expectations. you can see how the markets are trading today. >> certainly. it letsz doctors check heart beak and continue to track it on
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the go. let's take a look at what's next for mobilized health care. >> quite a presentation with the apple watch in september, earlier this month. tell me what is the response and where are we going to be a couple of years from now with this type of technology where doctors can use a watch to monitor how a pregnant woman's baby's heart rate is doing? >> the reaction has been incredible on not just in health care, but people reaching out to us from other industries. >> there is a shift in technology. not just about health care. it's not about disruptive innovation, which is all about apps and productivity. now it's about disruptive transformation. it's about combining technologies to create solutions. in this case for the patient.
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>> it's not even two years to see the big transformation. >> you're here with microsoft, and now you don't play favorites with platforms, that you say apple is working a little bit more intently with you guys to make this work. tell me what's going to determine which platforms win in mobilized health care? >> well, the microsoft partnership has been incredible because, as you know, it brought the same user experience throughout multiple devices. the event at the apple conference. i would say that apple like to brings cool companies to be astage, and that's why we were there. what we are really looking at here is if you use the example of a pregnant lady, if you look at the statistics in the
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country, 20% of pregnancies are high risk pregnancies. in many cases you have months with diabetes that makes them high risk pregnancies. they need to be able to -- then the doctor needs to see that information remotely. at the same time be able to communicate back to the mom if there is some abnormal event with notifications, text, e-mails. reminders for appointments, and even making a phone call. you didn't have this before. >> it seems there is very little error in health. how do you make sure that doesn't happen? >> very good question. when you're monitoring clinical
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conditions, there are two types of things you need to monitor. one is the primary condition. fwluk yoes monitoring or high risk, and then activity is activity monitors bring information that is important. the reality is you use it to monitor the number of steps, blood pressure, and other things. the reality where you need the accuracy, with fda clearance, and agnostic quality is on the sensor that is monitoring that specific condition. >> what's more important? the fda -- getting fda clearances or having insurance companies come in and install incentives, right, and provide coverage and make it sort of -- make it more yub versal across their client base? >> so when i said that there is an era of transformation, it's important that the fda regulate,
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but at the same time the reimbursement has to come from the government. the government has to really make a stronger push. it's already moving that way, but it's not moving in fast enough. >> this is the type of quality that makes these away wearables a must-have. >> samsung is opening a brand new office in silicon valley, but does it measure up to its piers? we'll grif you a closer look after this break. can it make a dentist appointment when my teeth are ready? ♪
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can it tell the doctor how long you have to wear this thing? ♪ can it tell the flight attendant to please not wake me this time? ♪ the answer is yes, it can. so, the question your customers are really asking is, can your business deliver?
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>> good morning, everyone. the sec is charging michael and his new york-based investment advisory firm with fraud for putting out a manipulative press release announcing a takeover
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bid in 2014 for barnes and noble. a story we covered. it said they had no ability to finance its purported offer to buy barnes & noble, and on that press release, of course, the stock jumped. the s.e.c. said that g asset had recently purchased thousands of barnes & noble shares and short-term call options intending to profit by selling those after the stock moved. they have settled that case. glickstein agreed to pay a settle sxmt barred from the securities industry for a minimum of five years. you're up-to-date on that. i'll see you in a moment with the news update. back to you. >> thank you very much, sue. in the meantime, market is down 224. pretty steady. decisively downward action. the news flow has been pretty negative all through the overnight. taiwan and norway cutting rates. a surprise move.
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a sign that the oil patch is making its way to some of those economies around the world that depend on it heavily. >> of course well, saw japan, negative overnight. we saw hong kong negative overnight. shanghai was able to hang in therebying but the fall in the asian markets has been catching on here once the u.s. market wakes up. although we have been susceptible to moves in crude, moves in the dollar as well. a lot to work with here. >> citi has cut their global outlook. goeltdman cut their outlook for q3. the bears are out for sure. simon hobbs is here to wrap up europe's trading day. >> i wish i could cheer you up, but i can't. this was rough for the european close again. it's the accumulative affect that becomes important. it's the vw scandal and a number of the china plays that are really hurting today. the beginning of the day we had actually quite a good survey of german business sentiment, but, of course, that's historical now given what presumably is going on with vw. the borrowing from the ecb on that cheap ltro cash was much lower than anybody else.
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an indication that the banks may be -- at least it's not -- if you look at the stock market action, though, take it back to the beginning of august, which is when our troubles really began. you'll see that while this market, the s&p 500 is down 9%. the european market is down 14%, and it's the german dax in scale and magnitude that is leading the down 16. of course, the swrermgan dax has lost 8% during the course of the last week alone. you see the other automotives are in negative territories by association. a lot of people called into question the assumptions they may have in investing and what were arguably super safe cyclicals. volkswagen itself at one point today was up about 7% after where heed's 5% recovery, but then we got news from a german
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minister explicitly saying that vw had been manipulating emissions in europe and, bang, it went straight back down again. for the week so far, it is a weekly event, volkswagen down 30%. then you have what is by caterpillar as management says hey, it's not not getting worse. that's what caterpillar is saying. schindler, the elevator and escalator giant. they now have a problem with the chinese authorities apparently questioning some of their local staff. they say they're working with the authorities there, but the stocks down almost 7%, and then you come to glen core, the mining giant. i have a note from goldman's that they put out earlier today. remember, this is practically the free fall now. a lot of people were saying that the selloff was overdone. goldman's is now questioning whether the industrial assets can service the lower level of debt that they now have, and they say, look, if you take spot
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prices down by 5%, its current credit rating comes into question. if it falls below its current credit rating, it would not be credit worthy in the traditional sense, and that goes the argument from others impact on the trading businesses. therefore, they may have to take further action like caterpillar to cut the franchise in the wake of what is happening in china and with spot prices in particular. finally, let me mention, we'll pick up. norway did have a surprise cut in rates today, and there you can see the norwegian crown tumbling. guys, back to you. >> all right. thank you so much, simon hobbs. i believe we are getting some pictures of the pope as he is entering st. patrick in the city in d.c. he will give some brief remarks there as well as a blessing where heading to new york city.
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>> right behind me here is a 1.1 million square foot complex. this is samsung's new north american headquarters. this is the latest in a commercial building boom and will have compoen ebts of samsung electronics, plus sales and marketing. >> if you look at what consumers are craving. they want the greatest and lathes. it's moving at such a fast pace, and this is such a perfect time for us to reinvest even deeper here in silicon valley. >> now, it's here that r & d teams work in state-of-the-art
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testing labs from technology to consumer electronic to home appliances, and it's time for a break, then employees can hang out in the chill zone complete with napping pods and pool tables. of course, there's free food with a cafeteria serving up global cuisine. san jose residents will also be able to enjoy the space with a coffee shop and wine bar. eventually opening to the public. google is reportedly also looking at real estate as space gets hard to come by in its hometown of mountain view. kayla, back to you. >> all right. thanks, josh lipton with an inside look at a very cool new samsung office. still ahead, taking on the apple watch. why pebble is comfortable being the swauch of smart watches to apple's smart watch. that's when we return. ♪
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good morning, everyone. i'm sue herrera. here is your cnbc news update at this hour. as you saw here on cnbc, pope francis delivering an historic speech to members of congress this morning. the first by any pontiff in a wide-ranging speech, he urged companying and the united states not to be afraid of immigrants, but to welcome them as fellow human beings. he says people are not thekz that can be discarded just because they are viewed as troublesome. he also called for the end of the death penalty. a stampede killed at least 717 and injured 850 more on the outskirts of the hole where i city of mecca in saudi arabia.
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it is the deadliest tragedy to strike the annual pilgrimage in more than 20 years, but it's the second major disaster to hit this season. a crane collapsed two weeks ago and left 111 people dead. >> back to squawk alley and carl. >> not to be outdone by youtube, facebook is introducing panoramic 360 degree videos with initial partners that include disney's star wars, go pro, and saturday night live. joining us to weigh in this morning, john steinberg, the ceo of daily mail north america, a cnbc contributor. >> i have only see the star
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wars, but it is amazing. >> i have watched a bunch of them so far. >> you are going to have the occulus out for the holiday. you have content developers for it. you have vice and star wars and snl. it's a real thing. >> although i have to give you a hard time about this because the news about these ads came out at can lion, and we asked you about it, and you said it's want a big day diehl. it's not going to be meaningful for the company's ad revenue. >> that was that whole new ad product they had announced, which was basically a magazine type ad. that's not a big deal, but i think the virtual reality as a platform is compelling. remember, it's not that new either. i mean, 15 years ago i remember static 360 degree images that you could move through, but in terms of video, it works. it's compelling. i think it's a thing. >> how big a deal is this for advertisers? >> i could see possibilities in
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advertising with interesting 360 degree video environments that people might want to spend some time in. >> i think there's a long way to go before we have adoption of the editorial product, and i think it's a long time before there's a critical mass. we're years out from this mass adoption because it's going to be so expensive. you. >> you need $1,000 computer to be able to run it. >> i think it's still fairly expensive. >> speaking of ios, apple sent you an e-mail which said? >> it said the pope is going to cause me not to get my rose gold
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iphone tomorrow. possibly. that's what it said. it said because of traffic conditions, i'm on the upper east side. 72nd street is all blocked off. it was a don't get too excited for tomorrow. >> it's really because lust is one of those seven deadly sins and you were lusting too much after that iphone. it's keeping you from it. sdro the hand of god has come down and told me to chill out on my skupgs, and it's stopping the iphone from coming to the upper east side. >> we're not going to hear from apple are we that opening weekend in retail is affected by the pope's appearance in new york city? >> i don't think so. it's interesting. i was one of the first people signing up for a slot to actually go into the apple store and pick up the phones and i'm really interested in seeing tomorrow how the iphone upgrade plan process works. >> they signed me up for a spot that doesn't exist. just a handful of people that are over eager got put in that position. >> i think the stores are
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theater at this point. none of the stores even have that much inventory. it's that preorder weekend. apple gave a statement to cnbc saying that they were on pace to beat the ten million preorders that they had last year. that was with a brand new model. this is just the s mobile. it's really that number. >> it's theater. i'm going have my phone in the morning. >> with the throngs of people passing down fifth avenue because that's one of the streets that's closed, maybe you might even get a bump in the fifth avenue store. here in new york at least. >> it's a convenient excuse that if the in store mrchz are light, it's a good excuse to blame the pope if they have to. >> did you see mossberg's review? >> at the beginning of the recode or verge review of moss beg, he curses. he says this is [ bleep ] fast. he goes through, and look, for mossberg, who is is not -- it was a pretty good view re-view. especially for a to come cycle model. >> i think you're looking pretty
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good. sfla i will eat part of carl's tie. >> if they go negative in the december quarter. >> and the other part of the tie, the noneaten part should be the sign eat the number prize for cnbc viewers, i think. is that good? >> sounds great. >> you need to go into premows. >> rick, what are you watching today? >> i'm watching the stock markets. i'm watching the german dax trading at the lowest levels of the year, and other than some august dates, so are our markets with regard to equities. so would it have been much different if the fed would have raised thursday? we're going to talk about that and the affect of stocks on interest rates after the break.
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>> coming up, the markets direction hang on what fed chair yellen says in that speech today? we're going to discuss with a panel of experts what investors need to hear. plus, the analyst raining on netflix's parade today. is that stock prime for a big fall? we're going to ask him. the used car trade, very hot area of the market over the last year, and is it about to stall or stay in overdrive? we'll find out straight ahead. we'll sigh you in about 15 minutes or so. >> thanks so much, scott. let's get a check on the markets. major averaged down for the third day.
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the nasdaq joining the s&p 500 and the dow on track for their worst quarter in four years. right now the dow down 216 points. down 1.3%. s&p down 23 points. nasdaq is the worst. down 70 points or 1.5%. >> the stock continuing to say where the succession mrai plan, where is the new ceo? bob pace says the upgrade for ios has some promising tools. this universal tweet, for instance, is an example of what he called the low hanging fruit that could improve mau's. no one is hearing that today. >> yeah. the thing that's going to help this company is new products that build on top of what they've already got. a new ceo. hey, it makes you feel good for
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a minute. the new ceo has to build some stuff. >> then you have the goldman note which talks about the future future. >> the ceo gave us a look and how he thinks it will stack up to the competition. take a listen. >> we're announcing our latest pebble. it's called pebble time round. it's our first round smart watch, but it's a pebble at heart. it's got a color e-paper screen. it's got days of battery life. i think it's the first smart watch that truly looks like a real classic watch. granted, apple is a massive company. you know, biggest company in the world. obviously it's a major change, and it's a major newcoomber into
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the smart watch space. so far we've seen good effects of that. there's a ton more people that know about smart watches. when you think about apple and the apple watch, you are looking at more of a rolex. i think they're building the high end of the market. they came out just two weeks ago with an hermes $1,200 watch. that's totally cool for some people. pebble, i think we're confidently in the kind of entry point into the market. apple watch is more of the rolex. i think we're more of the swatch right now. >> i got a pebble as a gift, and at the time i was, wow, this is amazing. now -- >> now you're wearing nothing. >> exactly. that's what has come full circle. the evolution in the category is incredible. >> it doesn't cost $350. that's the problem with his argument. you know, maybe his is cheaper, but only half as cheap. the fact that he is not arguing that the apple watch is flawed fundamentally is interesting. >> "mad money". all right. well, the debate will continue certainly, but in the meantime, let's get to the cme group. rick santelli and the santelli
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exchange. >> the fed didn't do anything. 1990 were the s&ps. we've lost 75 points. what's really fascinate issing what if the fed didn't raise rates, and everything worked out as it has? i understand vw isn't really easily assimilated in my kind of alternate universe, but the weakness in europe certainly was. all of this is constant. vw is an outliar. it's an issue that you wouldn't have known. i can't imagine what the media and the newspapers, the periodicals, the barrons would all be saying. uh-huh, look at this. we lost 75 points.
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see what's going on? this is all about the fed. they shouldn't have done it. this is why it's so difficult to get a handle on anything when nobody in the investing community or in the community that's in charge of policy really has anything to impart on us as to where true rich and cheap is in any market. the fact they didn't do it, and they talked about it, and the notion to keep the door open, i think, just worked against that. if you look at the dax, and i started this in october, what really should jump out at you that in august there's a blip. they're at the lowest level should they close -- they did close.
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all the way down to 1,867. it's virtually the same. now, what has changed with interest rates is that inherent, and let's go to the chart. we had one test of 2%. the reason that is held in had market participants view is that the equity markets and the fed and the hope of normalization being a positive. >> any close for 2%, and even the next number. the 185, 186 from the october flash grass, watch that one carefully. the ceo will join us next. before we get a break, one more check on the dow.
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still down 223 points. squawk alley will be right back.
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challenge its leader lending club. the internet-based lender announcing this morning that it's buying bill guard to start up the health consumers management of money and protect
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financial identity. swroinks now exclusively from one market in san francisco aaron, ceo of prosper. it's great to see you this morning, aaron. >> great to be here. >> so the familiar story for bill guard is that it helps you monitor your credit. why is that something that prosper and its customers needs right now? >> you know, prosper is an on-line marketplace for consumer credit, and our mission is to enhance financial well being for our marketplace participants, and, you know, one of the things that we have really concentrated on and want to build as we go forward is increased engagement with our consumers. we want to provide enhanced value to them, and we want to be able to offer a broader suite of products, and so something like bill guard that allows people to stay on top of their financial picture allows us to drive engagement and have people visit the site more often and have a better relationship with our customers. >> you know, it's interesting to hear you say that you want to improve the suite of products that you are offering to your customers. it sounds a little bit like a
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bank, but, aaron, you told ft, i wouldn't want to say we're going to act like a bank because we're not, but the philosophy is somewhat similar. what do you hope to be? what do you hope to offer the consumer that's still allowing you to not be regulated? >>. >> you know, we really focus on providing people with a better rate, a better rate of our money. we want to be really transparent and really fair and have a great customer experience. philosophically we want to be a trusted partner to both borrowers and the investment in our marketplace. you know, we're not a depository institution. we're not trying to be a bank. we partner with banks right now in many ways. philosophically we want to have that trusted, long-term life cycle relationship with consumers where they will seek us out when they're looking for financial solutions. >> aaron, you have been able to attract a lot of investors that would have invested in traditional bonds, traditional interest bearing securities. because you guys offer such a
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higher interest rate than the traditional securities out there in the market. i'm wondering if you have seen any changes in investor demand as we begin thinking about what happens when the fed raises rates and some of the investor demands stoked by zero interest rates goes away? what happens? >> sure. we have a broad spekt spectrum of investors on the platform, and i hi if interest rates go up a lot, you may see some of the investor mix change. remember, the average investor return in our platform is about 7%. if interest rates go up 25 or 50 basis points, wronk it affects the attractiveness. if there was a larger dislocation in the markets, i think we would see some of the people with higher rate of return expectations go away, but then again, there are many, including banks, who have essentially zero cost of capital that we think would continue to invest over a long period of time. >> we'll keep our eye on you and on prosper as the space continues to develop. we appreciate you joining us
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today. >> thank you very much. >> aaron across the marketplace. >> take another look at the dow today. not a pretty picture. down 217. s&p down to 1915. tomorrow blackberry ceo john chen will joan us after the company reports earnings. look out for that. we'll be right back. awe believe active management can protect capital long term. active management can tap global insights. active management can take calculated risks. active management can seek to outperform. because active investment management isn't reactive. it's active. that's the power of active management.
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i'm watson. and today hundreds of companies are putting me to work. i'm teaching watson to help your vet speak dog. you're a dog, right? i'm teaching watson to help you make healthy choices. i'm teaching watson to help design a vacation around your personality. don't judge. i'm teaching watson to answer endless questions. how big is infinity? where do babies come from? why can't i have chocolate for breakfast? i'm watson and i'm ready to work with you.
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>> dow not a pretty picture, although i guess you can argue that we're no longer down -- not quite 200, but we are down 200. all components in the red. caterpillar by far the weakest as they lay off up to 10,000 employees over the next several years trying to save $1.5 billion. it is not -- i was just thinking it's not been a good month for anyone who makes or distributes heavy things this month. caterpillar, volkswagen, hp with layoffs not too long ago, and, of course, the guidance we got from fedex. >> that's right. not a good day for a lot of the internet names either. yelp down, twitter as well. knee been down more than 3%. it's hard to draw a solid conclusion on any of that because you got gopro rebounding up nearly 3%.
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there could be outsized action as people try to rework some of their portfolios going into investor letters. >> we know the last two weeks of september are the weakest after september options. i think 21 of the last 25 years have been negative. we'll see what the afternoon brings. let's get back to the judge at hq and the half. all right. thanks so much. welcome to the halftime show. our starting line-up today looks like this swrsh joe is here along with john and pete and cnbc's newest contributor is here as well. portfolio manager with douglas c. lane and associates. he only has nearly $4 billion under management. it's great to have you as part of the family. steve liesman here as well. our game plan looks like this. the analyst who just hated on the stock again is with us live this hour. what he sees that you should pay attention to. some of the parts are investing motif for the month.


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