tv Closing Bell CNBC October 23, 2012 3:00pm-4:00pm EDT
good stuff. you've earned your rest. thank you so much for watching "street signs," everybody. "closing bell" is coming up next. see you tomorrow. hi, everybody. we enter the final stretch. welcome to the "closing bell." i'm maria bartiromo at the new york stock exchange. tough day for the bulls today on wall street. stocks staging another big selloff. if you were thinking an apple rally was going to save the day, that's not helping much. >> i'm bill griffeth. all three major averages are down sharply now. the dow taking the biggest hit percentage-wise. big smacks again from some dow mainstays. dupont, 3m. here's where we stand at the moment. we're off the low, down 196 points. we had been down about 235 at the lows. we're down to 13,148. the nasdaq led lower now by apple is down 14 points.
although, it's off the lows of the day now at 3,002. the s&p 500 is down -- oh, there's nasdaq down 14 points. did we see the s&p? i'm following the apple story. >> s&p down 15. check out shares of apple. this is part of what's going tonight in nasdaq. stock taking a hit today even though apple announced the ipad mini. the company surprising a lot by announcing a new version of its full-sized ipad tablet. two new products on the docket here. we'll talk more about that. really, why investors are not buying into this news. coming down 1.5% on apple. it's a big part of the s&p 500. it's a big part of the nasdaq. 20% of the nasdaq 100. as apple goes, the market is seeing that as a pressure. >> plenty of that coming up. meantime, a flurry of weak earnings setting the stage for the selloff today. a lot more results ahead, too,
for investors to chew on. the question is, will it be more bad news for the bulls? >> in today's "closing bell" exchange that's what we're talking about. gentlemen, good to have you on with us. thanks so much for joining us. vadeen, you're the chief market strategist there. when you see a market down 200 points, what do you want to do? >> i think you want to first understand why it's down, what the character of the underperformance is. if you look at the stocks today, it's very pronounced. most of the big winners from the last two months are down. a lot of the big losers are outperforming today. this is a typical of a due risking rally. it's technical. it probably has less to do with a macro environment and much more to do with perception of risk and short-term issues. >> and peter, you've been among those. we've all talked about the disconnect the fundamentals and
market performance, which seemed to be going higher because of fed policy. but you're pointing out now the fed can't help them right now, can they? >> right. the fed qe-3 in the middle of september was a sell on the news event because we were rallying for six weeks going into it beginning with the ecb. as i said before, central bankers put beer goggles on on i -- investors and swept away the reality. things aren't that good. no amount of money printing is going to make it better. >> that's what we keep seeing from the earnings we're getting out. david wright, you have $800 million assets under management. you're a five-star rated fund. what do you want to be doing with those retirement dollars here knowing that you're looking at this market over the long term? >> well, actually, we're going to be buying more munis and mor. we're already extensively in
high-grade and high-grade european bonds. this is great opportunity. we disagree about the macro issue. we're top down mack row people. we think this is a macro play. >> so you think it's the beginning of a decline economically. joe, you're watching some support levels here that the s&p, for example, you're going to watch 1400 very carefully, aren't you? >> well, for sure. obviously, the risk swiped across equity, commodities, gold and oil in particular. the market kind of bounced a little off that 1406 level in the futures. we're hoping that psychological level does hold a little bit. at the end of the day, there's still a lot of opportunity to trade. you don't have to be all short or all long here. you can move around. you just have to make sure you stick to your philosophy, stay focused in the names you may have an edge in and stop when necessary. >> peter, what's your take on
when things bottom here? clearly we're in a choppy mode after what has been a good 2012. how much further do you think the selling goes on? >> well, i really think it's going to be determined by the winner of the election. it's going to be either black or red in the market's reaction to the election and the rest of november and through the end of the year. the market wants romney to win. the market's going to rally if he wins. the market's going to sell off if obama wins. from here until two weeks from today, i think the market's going to continue under pressure. the question s do we continue with that pressure into year end or do we reverse it on an emotional high from a romney victory? 2013 is going to be a different story, but the last two months of the year will be purely on election emotion. >> and let me bring up another point. there was a story in "the new york times" this morning that ben bernanke is telling people privately he doesn't want a third term as fed chairman at this point. how much of that could be part of the selloff?
>> i wouldn't link it to a rumor. it's too broad based and seems to be too much tied to the earnings announcements. having said that, while i think an election is important, i'm not sure which candidate is actually going to be good for the market. the reason is, to the extent we see a significant pullback on the spending, even by the government, i'm not sure that's going to be particularly positive, especially if it drives csignificant deceleratio in the economy. i think it's whoever can provide enough fuel to keep driving the market. >> one that was interesting that i think you mentioned is the short-termism we're looking at and what is the nature of this selloff. it's about earnings. it's about the global slowdown. that's not necessarily near term. so looking at this market going into year end knowing we have all these uncertainties, should you be taking some money off the table here and selling along with this market given the fact these uncertainties aren't going to get cleared up overnight?
>> yeah, look, in the very short term, i do think there's a greater likelihood of a modest pullback. if you think about why did the market run up, some of the run up was associated with the expectation that brazil and china economies are bottoming out and starting to turn up. it's been tied to the expectations that some of the tail risk associated with with europe has been removed. those believes haven't gone away. all we have had is after following a run up, we've had a day or two of derisking. i'm not sure that completely should change the picture. so i'm not sure i would deviate dramatically from the stance we've had. >> all right, guys. stick around. we're going to ask you to provide more insights as we make our way through this final hour of trade on this selloff day, again due to earnings. thanks for joining us this time around. it has been the fundamentals fueling this selloff with more companies reporting disappointing earnings, especially on the revenue side. courtney reagan looks at today's
not notable losers. >> a big earnings day and a big earnings week with three dow component disappoints. let's start with the cleanest shirt and the dow component. the industrial conglomerates. if we can move on to dupont. dupont missing on both the top and bottom lines and cuts 1500 jobs in an effort to boost competitiveness. down 9%. 3m did match earnings estimates reporting a third quarter profit of $1.65 a share, but its full outlook is short of consensus. that's pulling shares lower. ups reporting a drop in quarterly profit and lower than expected revenue, but a slight improvement in its outlook is lifting shares. up more than 3%. now, facebook reports its second quarter as a public company after the bell today. investors looking for guidance on growth potential and any
updates on that mobile business. investors will be listening for netflix forecast for its streaming business. that's been an area of concern as of late. shares are higher ahead of that announcement by 1%. maria. >> all right. thanks, court. we are at the worst levels of the day. down about 215 points on the dow jones industrial average. pretty much across the board selling today. >> this could be a very interesting last hour. stick around. a lot more in today's massive selloff. plus, coach, one of the few stocks soaring. it's right now the best performing s&p 500 stock right now. its ceo will join us exclusively coming up on "closing bell." coming up, fed in the red. has the central bank finally run out of bullets to fix the economy, or are its programs just missing the mark? plus, maria on the markets.
she said it once -- >> investors have been ignoring the weak economic backdrop and instead plowing money into to be its. >> and said it again. >> fundamentals matter. earnings and profits matter. they are what stocks are based on. >> if you were listening, today's selloff should be no surprise. keep it here for more insight and comprehensive coverage of the market's wild ride. that's all ahead on the "closing bell." [ male announcer ] at scottrade,
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welcome back. 45 minutes until the closing bell sounds for the day. let's give you a quick market stat check. the low of the day, want to correct myself, the low of the day, down 262 points earlier today. so we are off of the lows with this decline of 210 points. the industrials on track for the second triple-digit decline since friday with a decline of about 1.5%. corporate earnings missing
estimates and revenue coming in light for the most part. it's not all gloom and doom today. coach, harley davidson all posting sharp gains. so you do have some names that are doing quite well. coach's ceo lou frankfurt will join me in a few minutes to talk about the staying power of china's hungry customers. you won't see that interview anywhere else. as bill told you, this is the best performer within the s&p 500. >> has been so far. so what's it going to take to get this market going again? if fed chairman bernanke got his way, we would still be feeling the effects of the last round of open-ended easing right now. >> qe forever. >> qe infinity as some are calling it. since the fed made its last policy change in mid-september, the s&p has actually take an hit. as peter mentioned, that was the sell point. >> it really was. some worry the federal reserve policy decisions may be doing more harm than good for the economy and the markets. let's see what our own steve
liesman and rick santelli have to say about it. both join us now on this ugly market day. steve, is the fed effect wearing off? >> i think it has to come up to the challenge that the market is presenting it. the issue being whether or not what we're seeing in earnings is telling us something about the domestic economy we don't already know. there is some thinking out there, i will tell you, maria, that what we're seeing is the effects of international slowdown, the global slowdown, along with currency translations. i'm very interested, maria, to follow what the retailers are saying, the whirlpools. i'm going to be listening to that interview you're doing with coach because what i've heard and what i've seen is the retail numbers are a little better. i don't know that necessarily we're learning new information about the economy here through these earnings. >> a lot of those retail numbers get better with incentives. that's what retailers have to do, provide those incentives to get people to come in the door.
>> fair enough, but if it's profit, bill, then it will be something worth noting. >> exactly. absolutely. you know, rick, last month when they announced qe-3, mr. bernanke said it was designed to boost main street. the numbers getting now, you seem to sense -- and you heard this from ursula burns at xerox, that you're starting to see a definite slowdown occurring again. it would appear that at least this rounds in the early stages isn't have the impact that mr. bernanke was hoping, right? >> right. whether it's fedex, cisco, google, there's obviously some misses. we see certain areas, especially technology, where, you know, many investors try to hide out. well, there is no place to hide. i think if there's one dark side to the fed programs, it's that in the end i really don't think that they can help the economy. i think that they could try to prime the pump in some weird ways, but the issue really is that you can't prime a pump ever to. it's not priming the pump if the
only thing that comes out is primer water. i think there's nothing that beats old-fashioned economic growth. i think right now whether it's europe or the u.s., the plans to really unleash growth aren't necessarily the right plans. i don't think we're far off. i continue to look at our neighbors to the north who've created close to 900,000 jobs since the summer of '09 with e 1/10 the population. can they be doing anything more dramatic than the u.s.? >> canada has a very heavily based energy economy. >> so do we. >> the overall thought here is that you can't grow an economy just based on monetary policy. you need fiscal policy. >> no, that's right. >> investors are dying and desperate for fiscal policy. >> maria, i want to challenge
the question, and i want to challenge rick's answer. we're talking about third quarter earnings here, which is something that took place between, what, july, august, and september before the fed put its policy in place. the federal reserve's thinking about its policy is it has an effect based on the cumulative amount of bonds it owns. not by the flow, but by the stock, which would suggest if there is going to be an effect on markets, both stock and bonds, it is to come and should not be gauged coincidentally with the actual purchase. certainly not the beginning of the program. we're talking about earnings that took place before the program even began. >> the expectations were way too high. let's face it. they are way too high for the fourth quarter. i mean, double-digit growth for financials and earnings for the fourth quarter, we've been saying this for months already. >> qe-3 only extends what has existed already. it didn't lower rates anymore than it already did. the impact on main street really
is nil in that regard because you don't see a difference in the change of rates and so forth. >> you do in mortgages though, bill. >> steve, what is your point? what is your point, steve? >> i'm saying you're way premature in gijudging the inta of fed policy. they've said repeatedly it's a stock impact not a flow impact. third quarter earnings being based upon what the fed has done is way early because it wasn't in existence most of the third quarter. >> no, it didn't exist. we had the twist. we had qe-2 before that. it's been a whole plan of qes. >> all right, guys. >> that's a lot of cruiseships in the water. >> it certainly is. >> cruise ships? >> the qes. queen elizabeth.
where were we? >> okay. >> heading toward the close. 40 minutes left on the day with the dow still down 2010 points. apple's big product announcement today. can the ipad mini have the same success as its bigger brother? what's the deal with the ipad number 4 they announced today? didn't 3 just come out a few months ago? >> it did. >> how ticked are those people? we're back if a moment. [ engine revving ]
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as you see there, apple stock down better than 2% today despite unveiling the much anticipated ipad mini. it's smaller and cheaper than the full-sized ipad. with a screen measuring 7.9 inches, it's slightly smaller than rivaling tablets. preordering kicks off this friday. that price point is a lot higher than smaller tablets made by competitors. >> the expectations were $250, maybe $300 to compete with the $199 kindle fire and the google tablet. brian sullivan is at the apple
event. he's got a mini in his hand. we also have max wolf to help us break it down. brian, you have that mini there. are people -- first of all, what's the first reaction, and also to the price point? >> i think you make a good point. by point of comparison, this is the normal ipad. this is mine. it's an ipad, first generation. it's a little thicker than the latest. this is the ipad mini. this is the new ipad mini, 7.9" screen. that gives you an idea as to how it stacks up against an older ipad or the full-sized ipad. here's my iphone. so again, just trying to show you guys the side differences. so it falls in that sweet spot there. 7.9", but as apple made a big point of saying today, the
actual screen size, what you see, is about 35% larger than some of the similar sized tablet computers that are out there as well. amongst other things, guys, they also unveiled the ipad 4, fourth generation, whatever you want to call it, which is going to have a faster chip and longer battery life and the lightning connector. >> looking at those products, brian, you know what comes to me? how many variations can they make of this thing? max, you say these products will cannibalize some of apple's other products. i totally understand what you're saying. do you think it's worth it? >> i think we're seeing a test of how loyal the market is and how excited people are to have things that say apple on the bottom. i think we're seeing a company that's experimenting with chips in an interesting way that's made some investments and is also trying to keep its revenue
up. let's remember that even though apple's computers are outperforming, the desk top notebook space looks like it's in a secular decline. they want to stuff the channel with a lot of different opportunities for sizes and tastes within that space. although, i fully agree with you there's a question of, how many screens do we need in our lives? how much money, how much time? >> at some point, you're going to get something in between the new ipad mini and iphone in terms of size. >> i've stopped listening to voicemail. i can't do another thing. >> and she does it all right here as a matter of fact. trust me on that. >> she does. >> are there features beyond just the size of the screen that are going to want to attract people to the mini? >> yeah, every time we go to a new its rativersion of the ipad iphone, you're getting longer and longer battery life. that's a big deal. that's why they're using the new connector. i understand the points you were
just making. the whole day i have been talking to people that have been around here. not apple analysts, just people on the street. a lot of people have said the current ipad was too expensive for them. maybe $599 or so. this ipad, even at $329, may be more approachable to them. if you're in the apple ecosystem, if you have a mac, an ipad, an iphone, and you have a couple thousand songs on itunes or a couple books, once you're in a ecosystem, you're probably going to stay in that ecosystem. for apple, the lower price point, it can fit more easily in a man's coat pocket, perhaps, or a purse. it's getting people to move to the ipad. >> does it really fit in your coat pocket? let's see. i don't believe that. >> a jacket. not mine. you get the point. >> you're back pedaling now. >> very quickly, max, are we
overthinking this too much? >> a little bit. i think you'll have room in your back wallet if you fall for it. on the other hand, if you're trying to control an e cosystem and defend a 68% market share, you do need to flood the market with publicity events like this one and with product to try to push back against your google and microsoft encroachment and samsung encroachment. it makes a certain sense from a strategy point, but i think it's a revenue play with possible damage going forward. >> very good. sully, i know they'll be checking your pockets before you leaf there. >> i was going to say, you're going to get me in trouble. >> you got to get a new jacket. thanks, you guys. see you soon. 30 minutes before the closing bell sounds before the day. down about 215 points. the low of the day was 262. >> yes, it was. >> so we're off the low. >> not all stocks lower, though, today. coach bagging strong quarterly
profits thanks to strong sales both overseas and here in the u.s. the stock is on a roll today. ceo lou frankfurt joins us exclusively in a few moments. >> also, yahoo! at the highest level since october 2011. also, all eyes on facebook. earnings coming out after the bell. it could be a tough period. back in a moment. if we want to improve our schools... ... what should we invest in? maybe new buildings? what about updated equipment? they can help, but recent research shows... ... nothing transforms schools like investing in advanced teacher education. let's build a strong foundation.
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well, it's not just stocks, we have crude prices collapsing as well today, dragging the energy sector lower. sharon epperson is here with details. >> the correlation trade in full effect today. oil prices down $2. we could see prices fall even further, traders say. we're going to get that report from the energy department tomorrow. it's expected to show an increase in crude supplies for the week. we already have a level 11% higher than the five-year average. we're also looking at a slide in gasoline prices. that's the silver lining. we're starting to see the prices
at the pump follow futures lower. that means we're looking at $3.65 a gallon right now. about 12 cents lower than a week ago. back to you. >> thanks so much, sharon epperson. coach shares soaring today. interestingly up with a market that's down 230 points. it's one of the best performing s&p 500 stocks right now. they got a boost in first-quarter profits powered by strong sales in the united states and china. >> it saw a 40% jump in year over year sales in china. you wonder, can the momentum keep going? especially with a slowdown here in the united states again. joining us now is the chairman and ceo lou frankfurt. is it your category? is it the geographic region you serve? why are your numbers so much better than others that are turning in disappointing revenue right now? >> we're speaking about china now? >> china and u.s. >> with regard to china, we're a
position that's an accessible luxury brand, which means our price points are 40 to 60% lower than the average european brand. we are much more in reach for the emerging middle class. consumers tell us that 90% who own coach products express a positive intention to repurchase. so we're finding acceptance everywhere, not just in our primary china cities but in tier two and tier three cities as well. >> you've expanded so much around the world, particularly in china. what's your plan now? given the backdrop of the economy. we know things are slow, even if it's not hitting your category. how do you resize the business, if you have to, for 2013 and beyond? >> well, first, fortunately, we're in the sweet spot, accessories. in north america, the category was up about 10% again during the last three months, which makes it about 18 months straight where the category has
been growing 10%. >> how much did the return of coupons help with that and incentives? how much are you having to insent vise the consumer to bring them in the door? >> our factory business by its nature is a promotional business because it's a discount p business. we have found that the added impetus of giving a consumer an additional discount to encourage them to make a purchase at the moment does really help. our sales in factory stores did bounce back after we reactivated it. however, on the full-price side, our promotional levels are modest. >> so let me go back to what i just asked because we didn't really get to it. in terms of resizing the business, expansion or pulling back, what's your agenda for coach? >> okay. well, first, because the category continues to be robust, we're continuing to open stores, especially dual-gender stores
outside the u.s. in china, we'll be opening 30 womens and mens stores. a majority of the stores we're opening that are focused on the single gender are mens stores. in the u.s., we're just opening this year a handful of full-price women's stores. we're shifting our merchandise mix to distort more towards mens from where it was. in fact, our men's business is up over 50% worldwide. >> when you start from such a small base, it's easy to grow at that kind of rate. do you think that continues to be a bigger growth category for you? >> absolutely. we did grow 100% last year. it is a meaningful business. we think we're going to do about $650 million in men's in year. in some locations in china, it represents as much as 30% of our sales. >> we've talked a great deal about your margins this year. what's your healthy margin?
they've contracted to some degree. is that going to have to continue if we see this economic slowdown continue? >> we don't think so. in fact, our margins are consistent with the level of margins we had last year this quarter. exactly the same. >> your own allocation of capital, when you were here the last time, we talked about ideas in terms of acquisition candidates, how you grow. what about dividend payouts, stock buybacks? with the currency at $58 a share, you have got some flexibility. >> we do. first, we're focused on internal growth. most of the $250 million we're spending on capital is to build and remodel our store fleet worldwide. secondly, we also are looking to provide increased returns, both in the form of dividends as well as stock repurchase. our board just authorized the $1.5 billion spend just in the
last few days. >> we'll leave it there. >> well, it's looking good today. that's for sure. on an otherwise down day. i guess you'll take that. >> we will. gladly. >> lou frankfurt, always glad to see you. >> heading toward the close and heading lower as well with about 20 minutes left. the dow down 243 points. the lou was 262. we're heading back there again. >> the issue is, does this continue? will fears about earnings fuel the next leg of the bond market rally, and does the selloff continue for stocks going forward? where are the safest places for your money right now? we'll take a look next. also, the author of the controversial new book "why i left goldman sachs." we'll ask greg smith about some of his most serious allegations against the firm. do not miss that coming up. stay tuned. ned. i was downstairs making coffee, and we heard it. it just came crashing through the roof, out of nowhere. what is it? it's our ira. any idea what coulda caused this? maybe. i just sorta threw a little money here,
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welcome back. tough day on wall street today. the dow industrials threatening to close down 250 points. we're down 244 right now. this is the second time in three sessions that the market is down better than 200 points. >> it could have gone either way, and it still could. just a few minutes ago we were either going to be down 100 points or down 300 points. a lot of people had different opinions on how this market was going to close.
right now we're near the lows. 260 are the lows. a lot of people pointing to positive news on the transports. ups and ryder both are better than expected earnings. apple, a lot of people not happy. near the lows of the day. they wanted $299 for that ipad mini. instead, $329. there's apple at the lows. >> coincidence or not, it did start going lower when they announced the price point. the question to be asked right now, are we doing technical damage to this market with the dow down more than 240 points that the hour? joining us in "talking numbers," ennis tanner. you want to look at the s&p as all traders do anyway and what this selloff has done to this market. are we starting a new trend lower? >> we look at the earnings, we can see that there's significant microweakness. the support has come from the central banks. you saw qe-2.
initiated a very strong rally in 2010 and 2011. operation twist last year initiated another rally. the anticipation in subsequent announcement, a breakout to new highs. each time the market broke that significant up trend, you saw that was really it for further gains. we saw the market top out here, selloff, and now we're in the process of breaking that up trend. i definitely think this is a selling point for -- >> how much? >> i think 1350 is easily achievable. >> okay. where does the money go? treasuries very often. you want to look at the 20-year treasury. why that one? >> tlt is the most widely traded etf way to access the beyond market. if we look at tlt, you can see that conversely, you would see down trends each time the fed would do a program.
so we've seen those down trends be broke whn ten the stocks sel off. we haven't actually broken the down trend in bonds. i'm more convicted on the fact that stocks are going lower and treasuries are going higher. >> that seems to be the trend. thanks, ennis. >> we're in the final stretch. 15 minutes before the closing bell sounds for the day. we have a market down 248. closing in on the lows, which were 262. if you've been watching the "closing bell," you know i've been warning of possible earnings related selloffs for a little bit now. >> in the end, it's always important to note fundamentals matter, earnings and profits matter. they are what stocks are based on. history has not been kind to investors when they have ignored this. >> so will the marks keep plummeting, or will this be a buying opportunity in the end? we're going to take a look next. later, why does one of the most successful hedge fund managers in history want mitt romney to win? don't miss my exclusive
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welcome back. market in the middle of another push lower as we head toward the close. we bring back our panel of experts to digest these numbers and maybe find some final opportunity in the final minutes here. could be the 200-point for the dow in the last three sessions. >> yes, it could be. our panel is back with us. gentlemen, welcome back. john said it's more about profit taking before the election and fiscal cliff. he also said maybe the market is not ecstatic with romney sweeping the white house, senate, and congress, which is also a possibility.
how much do you think this is related to election jitters, and how much is it fundamentals in terms of earnings? >> i think it's mostly earnings. there's no doubt that there has to be nervousness ahead of two weeks. to me, the market is either going up if romney wins and going down if obama wins. you need to alter your book ahead of that on the possibility of the president is re-elected. to say this is not earnings, i think, is not correct. >> vadeen? >> i think earnings matter. in fact, as the market ran up into the quarter, there were expectations that companies have reduced expectations sufficiently, that they won't have to reduce numbers any further. yet, as they reported earnings, they've continued to cut estimates, which has been somewhat of a disappointment. >> somewhat of a disappointment. where is the growth? where do you think are the real disappointments? i mean, yes, we've seen disappointments, no doubt about it, in technology.
can you make it other sectors? >> commodities and industrials remain quite depressed. >> fedex and caterpillar, i guess, yeah. >> so even within consumer, where the news flow appears to be quite mixed, we have retailers that are beating numbers and providing reasonable guidance. then there's just equal number of those that disappoint quite a bit. a lot of the stuff that's tied to housing, appliances, furniture, seems to be a bit stronger. >> david wright, are you starting to see any bargains? as this market comes lower, do you start to do a little fishing for bargains for the retirement funds you manage? >> not at all. our approach is very different from the two gentlemen you're talking about individual stocks with. we're looking at things very globally and much broader. we think it is a structural down turn in the market. it's a big cycle down. it has nothing particularly to do with recent earnings releases
or the election. the market got ahead of itself big time. it's been 3 1/2 years since the most recent low. maybe we're heading to another big decline, multiquarter decline. this is a very, very weak environment, and it's much bigger than any one day or week. >> how much lower can we do? >> i think the market could be heading six to nine months away into a low. it could be more than 15%. could be more than 20%. >> and on that happy thought, thanks, guys. see you later. thanks for your thoughts today. >> we appreciate it. up next -- >> that's what makes a market, doesn't it? >> moments away from the close. market down 235 points with the nasdaq also taking a good hit. technology, financials, very much across the board tonight. >> and we are not by any means finished. facebook's earnings are due out in moments. we'll have the market reaction. that should be very interesting.
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okay. coming up on the five-minute mark. here's what the market's doing right now. i want to remind everybody as we head toward the close, we're at a critical juncture. why are we selling off today has a lot to do with these big blue chip companies that are warning. we're getting this same theme all the time. low down in revenue, disappointing revenue numbers. dupont, 3m. we get to today's dow chart, and the selloff was -- there was no question it was going lower from the open this morning. the low of the day was around a decline of 262 points, and we are just off that low down 233. here's what i think is critical. we have warren myers standing by here as well. the dow is sitting right on its 100-day moving average.
another move lower, and we could start to see a new down trend in this market right now. >> i'm glad you brought up that group of stocks. i think one of the issues with that group of stocks, dupont, among others, they are very reflective of a broad them. chemicals, you know, oil. like fedex and delivery. >> they're very basic to the economy. >> i think that's really what's behind this selloff. warren, anything happening at the end of the day you can tell us about? >> i'm going to bet the house we're not going to have the rally like we had yesterday. what you've seen now, it used to be the secondary and tertiary names in different sectors were the ones having difficulty. now you're seeing best of breeds coming out and warning. i think as you said, that's really a sign of getting to the heart of what the economy is all about. i think that's a little trouble
troubleing. >> finally the market is trading on fundamentals. we're starting to see this trend of companies reporting a slowdown in demand and the market is taking it to heart. >> that's absolutely right. this is not unexpected as far as a slower, lower earnings and lower expectations. i think it's just a little surprising the depth of it and how widespread it is. i think that's why it's reflected in the market action. >> probably as the fundamentals are not very good. that's the issue. slow down in china. so the question is, what are the levels you would look at in terms of a bottom for this market? >> you pointed out the dow. >> the s&p is at 1407. >> 1400 is the big number a lot of people, that psychological number. the 200-moving day is down at 1371. i'm not suggesting we're going get there. if we head that direction, people are going to keep their eye on that as well. 1400 is certainly the psychological level.
>> when you see an ending like this, near the lows, what does that tell you about tomorrow? >> unfortunately, what does yesterday's rally at the end of the day tell you about the next day? you can't read one thing after another. tomorrow, you're going to look at the new earnings. apple coming up later in the week. unfortunately, you can't rely on apple to save this market. i think a lot of people were hoping for that with the announcement today. >> i'm going to get ready for the next hour. we have facebook earnings coming up. that may very well be a tone for tomorrow. >> greg smith will be along. wrote the goldman sachs book. and the newly minted 80-year-old julian robertson will be along. >> i'll give you a hint, he's shorting steel stocks. more to come. >> you heard it first right here. what about apple? it's just one company, but it's been high profile. it's been a huge debacle. it could help set the tone for tomorrow again. >> it certainly could. you have facebook coming out, which will give you more on the social media/tech side. apple is the best of breed
across all sectors. all eyes are going to be on those numbers. you know, i'm not an analyst to tell you what i expect out of that, but whichever way they come in is really going to move the markets. >> you watch the order flow the way i do. we identified lately -- late in the day, it was a selloff, usually, after you had gotten buying in the morning. the so-called dumb money in the morning. the smart money in the afternoon. it was selloff from the open today. >> it was. look what happened. we have across the board lowering of expectations and weaker numbers coming out. we have an election coming up now that i think the results of maybe won't have an impact in the marketplace, whatever the outcome may be. i think people are very concerned about that. you still have some issues over in europe. so we were the bell weather, we were the hope. unfortunately, we didn't show up with that strength today. >> thanks, warren. i'll let you get ready for the close. off the lows with the dow down 237 points. the s&p down