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tv   Worldwide Exchange  CNBC  October 26, 2018 5:00am-6:01am EDT

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it is 5:00 a.m. at cnbc global headquarters, put those rally caps away. wall street pointing to another big selloff following yesterday's 400-point rally in the dow. we'll find out what's weighing on the market coming up. and it's a sea of red overseas europe and asia both under pressure this morning. we're live in london and singapore with the latest. amazon shares are a big driver there they're taking a hit as earnings disappoint for that f.a.n.g. member, same for alphabet. we're digging in on that f.a.n.g. fumble. and oh, snap
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the social media company hitting an all-time low as more users just disappear it's friday, october 26, 2018. "worldwide exchange" begins right now. ♪ good morning welcome to "worldwide exchange." i'm dominic chu. brian sullivan is off today. let's look how your money is setting up today the dow looking at a 300-point drop at the open if these losses hold it is just about the lows of the session right now. the s&p off by about 45 points the nasdaq off by 202 points that's if these losses hold into the opening bell on the treasury side of things, we are catching a bit for safety assets as a result, the ten-year treasury note yield has gone
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from 3.1213% down to 3.09% the two-year treasury note yield, 2.82% as treasury prices go higher and yields start to fall let's go worldwide we are seeing that again overseas action shape up the nikkei off by a half percent. the shanghai composite off by 0.2% europe is under pressure as well we are seeing a bit of deterioration there. with the main bourses there showing signs of stress. the dax off by 1.23% the cac off by over 2% and the ftse 100 in the uk off by 1.5%. let's bring in boris schlossberg from bk asset management, also a cnbc contributor. just when the bulls thought they were safe and had a 400-point rally in the dow, this happens we know it's earnings driven,
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but why is it spreading to a sea of red across all different kinds of asset classes >> you said take off your rally caps i just thought we need rally caps in reverse, dow 24,000, dow 23,000 as we're clearly seeing a correction across the world. i think it's driven a lot by political uncertainty compounded by economic slowdown when you look across the world, europe is having an existential crisis with italy. more importantly we have elections in germany this weekend that could put the centrist government of angela merkel in doubt. angela merkel is the glue that holds the eurozone together. if her government is in trouble that adds another point of stress into european areas overnight today we had the chinese yuan go to almost a ten-year low against the dollar. that's going to exacerbate tensions between the trump administration and china as basically they're going to be
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claiming the chinese are trying to devalue the yuan against the tariffs they're putting on that's not the case. it's simply that capita is flowing out of china you have all of these points of tension. it will come down to the economics in the u.s. and whether that can bring the bulls back to the table. today's u.s. gdp numbers will be key. they expect to be slower than the quarter prior, but if they miss, they will really essentially telegraph to the market that q2 of this year was peak u.s. growth if that's the thesis, the bears will run the table and have a lot of opportunity to take the equities down if you assume u.s. growth peaked now in the second quarter, it doesn't look good for the market going forward. >> boris, we often talk about this idea that as prices decline bottoming is a process >> sure. >> not just a point we can say there will be a v-shaped
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recovery here. how do you see this playing out? what do we need to see what is the roadmap we need to follow before we feel safe about the markets being constructive again? >> i think it will have to be factored both in the political landscape, tensions have to ratchet down, and it has to be the economic data. the economic data has not been that positive despite the stimulus in the u.s. economy that's going to be the key for example, the trade deficit expanded for the fourth month in a row yesterday. so despite all of these efforts to get u.s. trade more positive, manufacturers growing, we're not seeing that in the numbers retail sales have been weak relative to where they should be i think it will come to u.s. data if we don't get positive data today and over the next several weeks, i think the bears will have more to the down side equities have been wildly overpriced i've been arguing that we've
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been q2 peak growth for a while now, and it looks like it's coming to fruition we need to correct more from here before we see a bottom. >> so it's going to be a process that takes a long time, but not just the economic data, earnings driven data as well. boris schlossberg, thank you very much. in earnings news, half of the f.a.n.g. stocks reporting results last night and it wasn't pretty amazon and google both missing on revenues. those stocks are down big. alphabet shares are off by 5%. amazon shares down to 1,638.50 the stock is trading below its so-called 200-day moving average. that's just around 1,667 as you can see in the premarket session, we dipped below that. if things open up the way they are now, just about 1,638 is where we trade
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joining us on the cnbc news line, dan morgan from synovus trust. these are some stocks that make up portfolios, including your own. are you worried about what's happening with the f.a.n.g. stocks >> good morning. not really at this point i take a little bit of a contrarian point of view when i look at the earnings reports i get that revenues were shy on google and amazon. earnings per share were above estimates by a wide margin they came out and guided, especially amazon going into the fourth quarter below consensus when you parse through the numbers, they weren't as bad as everybody is thinking. we have to remember, dominic, these stocks have gone up so much apple hitting 1 trillion amazon hitting 1 trillion. it's only natural you will see a change in sentiment, pulling back and taking profit i operate on a contrarian point
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of view in the way i approach these names. >> dan, one key focus for investors again in amazon has to be amazon web services that aws business grew by 46%. is that still enough of a driver for amazon given the elevated levels that we've seen for that stock over the course of the past couple of months? >> you're right. the whole theme behind amazon is aws. it was up 46%. what's interesting is if you look at their overall other revenue, which is mostly their advertising revenue, that came in at about 2$2.5 billion, up about 122% whachl122% it's showing that we know the core retail business for amazon is a low margin operating business, but they expanded into aws, they're expanding into advertising. we saw operating margins jump to 6.6% on the third quarter,
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double what we saw the previous two quarters i'm looking for good things out of these growth components for amazon beyond the core retail business >> so amazon a big focus for investors today. it's also about alphabet, the parent company of google disappointment there as well these stocks have been driving the rally, what should we take away from the alphabet earnings? seems like they're that chumatu guess that's the best way to put it where else can they grow to show they can add market cap? >> you'r gho google did about a 21% growth in revenues which is not bad. advertising revenues up 20%. zeroing in on these new businesses, like we did with amazon with other
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revenue/advertising, and aws we look at the google cloud platform and the youtube business, youtube premium, that was up 29% they did about 4.6 billion again, you're right. they're growing at about the same rate as online advertising businesses now, which is about 16%. if you look at other businesses they're trying to get up and running they are showing success with 29% year over year growth i guess i'm contrarian to the street i don't perceive the google report being all that bad. i think these stocks have had huge runs. people are looking for reasons to get out >> a couple seconds left are you adding to positions in amazon and google? >> i will let things settle a bit. i have not been buying these stocks for about three, four months because they made such huge runs. they've been at all-time highs eventually there will be opportunities here >> dan morgan, thank you very much for those updates on amazon
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and alphabet >> thank you. let's get a check on some of the other top movers frank holland has those numbers. >> good morning. intel reporting better than expected third quarter revenue results topping expectations by $1 billion the company upped its guidance for the year intel's stock is up over 1%. snap shares hitting an all-time low you said oh, snap earlier. the company beating on the bottom and top lines, but her i growth is slowing. and chipotle reporting some mixed results. the burrito chain beating earnings estimates by 12 cents, but the same-store sales came in weaker than expected shares of chipotle are up right now. ak steele deep in the red
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after missing estimates. disappointing results despite a 25% tariff on steele fr from caa mexico and the eu. mat tell rigtel reported a n the top and bottom lines they grew in north america shares are down just a little under a percent. expedia reporting a profit beat but it missed on revenue the company pointing to strong growth in its home away unit shares of expedia, right now they are actually up >> thank you very much. >> coming up today we have more earnings from some big names on the economic data front, we have a major data point that all of wall street will be watching,
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the first read on q3 gross domestic product, that comes out at 8:30 a.m. eastern time, followed up by consumer sentiment at 10:00 a.m. eastern. we'll talk all things economy later this morning with an interview with cleveland fed president loretta mester, that's 8:00 a.m. eastern time on "squawk box. coming up next on this show, seeing red global markets feeling the heat. we're live in london and singapore with your worldwide market round up. and your friday market playbook it's been a wild week on wall street we have everything you need to have on your radar heading into the weekend. as we head out to break, another check on the early morning selloff in progress right now. stick around ghbaldwide exchange" will be rit ck
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outsized losses bigger than in the u.s., the cac in france off by 2.25% the dax is off by 2% the ftse 100 in the uk off by 1.5% we have full team coverage of the global market action. julianna tatelbaum is in london with the european trade, but let's start with nancy hungerford live in singapore with the latest out of asia. it was a rough session there >> it was, indeed. we never had a chance to get the relief you saw on wall street. it wasn't meant to be this way when we woke up in asia we were expecting a bounce after the move you saw yes, the nikkei 225 did kick off in positive reversing those gains and closing lower. a lot of tech pain canon was weighing to the down side after disappointing earnings guidance. let's bring your attention to
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the chinese markets ending in the negative territory there was concern about weakness in the yuan. let's check the yuan rates you were talking to boris schlossberg about this earlier there was an improvement at one point the dollar was making gains at close to 1.2%. as we stand, we're at 6.920. we had officials in beijing coming out fighting once again we heard from the chinese premiere saying there's no intention to de-value the currency the pobc vice governor tried to play down fear the over the weakening currency he insisting there were tools to stabilize the currency a bit of a warning, too for speculators. i can tell you it's just after 5:00 here, about 5:18 in china as well, so many traders will be heading home for the weekend
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hoping next week brings a reversal of fortune. >> nancy, give us a sense as you head into the weekend what is the sense of the biggest driver of the asian trade right now is it still china and the developments on that front >> i think investors are keeping an eye to china, the growth slow down there on top of lingering trade concerns the currency is playing into those fears. today we saw the movement to the down side of the region as soon as u.s. futures took a lower turn people are watching what's going on in the tech sector. as soon as you get a dip in the tech names, i know you've been tracking them, we see some of that pain filter over to the tech sector in asia. that will continue to be a concern. as my guest told me earlier today, he said this is a late stage cycle pattern. we can expect some of these
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swings to continue >> nancy hungerford, thank you very much for that update. let's turn to europe right now. julianna tatelbaum is in london where early trading is happening. the trade there seems so much worse than what we saw in asia and even what we're seeing now in the u.s >> certainly a weak morning here in europe, this after strong day yesterday. the stoxx 600 has erased all of yesterday's gains and is trading more than 1.5% lower what we're seeing here in terms of the narrative on top of the factors you mentioned hitting wall street yesterday in after hours trade and hitting asia overnight, we have corporate earnings coming through this morning across the sectors the theme is one of disappointment companies are increasingly concerned about the uncertainty in the outlook, that's weighing on sentiment
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cyclicals are significantly underperforming. every sector is in the red some more defensive sectors, utilities, food and beverages are holding up losses are everywhere. looking at different regions, french stocks are deteriorating from down 2% to down 2.5%. every region trading lower quite a weak last day of trading for the week back to you. >> so, a quick point here. we know earnings are driving the action here. is italy still very much on investor minds in europe and the developments there, the fiscal situation, the budget, the government how is that playing out in the markets overall? >> 100%. that's on investors minds for sure today in particular we're expecting to hear from s&p later today around their deliberations on italy's credit rating
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last week moody's downgraded italy down one notch investors are watching what s&p does and as well as any further developments between the eu and italy. that is very much an unresolved situation contributing to the downward sentiment we're seeing in europe. >> julianna tatelbaum, thank you very much for that european trading update coming up next, we'll bring it back to the u.s. shores we have an early morning selloff in progress. stick with us. "worldwide exchange" will be right back the dow down by 340 points at this point hey, how's the college visit? you remembered. it's good. does it make the short list? you remembered that too. yeah, i'm afraid so. knowing what's important to you... it's okay. this is what we've been planning for. thanks, bye. that's what's important to us. it's why 7 million investors work with edward jones.
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at letsmakeaplan.org. if you are on your way to work, we have an early morning selloff under way. futures are at the lows of the morning session. down by 360 points that's the indicated open for the dow. the s&p off by 55 points the nasdaq off by 254. we'll continue to keep a close eye on this market selloff we are following another major developing story the fbi is warning additional explosive devices may still exist after a string of pipebombs were made to politicians. tracie potts is live in washington with the latest authorities are saying they don't know what else is out there, they're trying to quickly track down who is behind this, but it turns out they do have a
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lot of evidence to work with ten pipebombs mailed to prominent democrats and critics of trump are being pulled apart at the fbi lab >> you have pvc pipe perhaps there's a bar code on that that might tell what store it was sold in or where it was manufactured >> reporter: postmarks led investigators to a postal facility in southern florida, far from delaware where the last two devices were discovered addressed to former vice president joe biden. >> this division, this hatred, this ugliness, it has to end >> reporter: why is someone targeting democrats? president trump blames the media calling out cnn in a tweet early this morning >> constant negative and oftentimes false attacks >> reporter: critics blame the president. >> his responsibility starts with not unleashing hatred and
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fear and anger that leads to violence >> the idea that this is at the hands of the president is ridiculous >> i think we're all at fault, first of all we lost our manners. >> reporter: 600,000 postal employees are on the lookout for more packages. >> we're taking this seriously we're treating them as live devices. >> reporter: so far none have exploded for that reason it's not clear if this was meant to be a hoax or if the person behind it made a mistake putting those bombs together >> tracie potts, thank you very much for that update. still ahead, the fang fumble tech stocks falling big time this morning more on those earnings movers ahead. another check on this early morning selloff. the dow futures right now pointing to a 350-point drop following yesterday's big rally of 400 points. stick with us. "worldwide exchange" will be right back or your digestion...
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market alert stocks in selloff mode following yesterday's rally. we'll find out what's dragging things down. emerging markets under pressure where you can find maybe some opportunity amid this global slide. and call it a f.a.n.g. fumble amazon, alphabet both down big this morning on the back of earnings reports we're digging in on those results.
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it's friday, october 26, 2018. you're watching "worldwide exchange" on cnbc. good morning i'm dominic chu. brian sullivan is off today. we have a selloff under way and futures are near the worst levels of the morning. the dow indicated to open down by 365 points if these losses and futures carry over to regular trading. the s&p is down by 56 points the nasdaq, as you might susp t suspect, getting hit the hardest. down 275 points. a lot of weakness on the back of those earnings reports frank holland has more on that >> tech earnings dominating cnbc.com right now amazon falling after its report. the online retailer beat street
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earnings estimates but revenue and outlook came up short of expectations that stock down about 10% right now. a similar story for alphabet the tech giant topping private expectations but missed on revenue projections. alphabet stock lowered today by 5%. and oh, snap the social media company falling to an all-time low yesterday snap warning investors the daily active users will continue to disappear. seeing competition from instagram and whatsapp that stock down 12%. back to you. >> frank holland, thank you very much for that. let's get more on this early morning selloff. let's bring in peter boockvar, a cnbc contributor this earnings season was supposed to save us from this kind of thing in the market. what is it that investors are now keying on that's making them
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feel like this is not a constructive environment anymore? >> i think it's a sense that profit margins topped out. global growth is now slowing when you look at the s&p 500, 40% of the revenue is sourced overseas we can see what's going on overseas profit margins were elevated by lower interest expense and low wage costs we see a rise in wages now, we see a rise in interest rates throw in tariffs, higher transportation costs, you can see that companies are not having the same earnings leverage compared to revenue growth >> i would say that the threat of higher prices, the threat of higher wages, the threat of rising interest rates has beenr years now. maybe it's starting to manifest itself a bit what is it about the current environment that has investors so scared now? >> i think it's the changing
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monetary landscape that creates the vulnerability for the markets and makes them less tolerant for issues like profit margins, tariffs we had an earnings recession a couple years ago, the market didn't care. because rates were zero, and trillions of dollars of money were being printed rates are no longer zero, quantitative easing sending in europe and is cut in half in japan. the cost of capital is going up. valuations are still high in equities, which makes them vulnerable to earnings misses. the case this year in u.s. stocks was profits will save us. rising interest rates, i don't care slowing growth overseas, i don't care problems with tariffs, i don't care earnings are great now we're seeing some chinks in that armor >> i'm looking at this idea that this is a re-evaluation of the overall stock market
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you mentioned the idea that risk-free rates are going higher is that simply put the reason why we're seeing a downdraft in stocks, not that the world is ending but stocks shouldn't be worth what they are at this point? >> when you have an expectation next year of earnings per share of $160, every one turn of the p multiple is 160 points in the s&p 500, which is large. you clip the pe ratio, now people are saying 2019 the base effects from the tax cuts are over, maybe we go back to the 5% type eps growth, which is at risk if global growth continues to slow. i have a shrinking pe and slow earnings growth, so there's a re-evaluation in the market. >> we spent the first half of this show talking about the
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micro economic stories earnings reports we know they operate in a bigger picture macro environment. we will get the first read on q3 gdp laterthis morning. how much does a supportive u.s. economy play into this earnings story we have going on >> that's part of this bulk case that's allowed the u.s. market to outperform everybody else in the face of these headwinds, particularly rising interest rates and a shrinking of the fed balance sheet. so we'll focus on that number today, but it is backward looking in that we're already a month into q4 and the market is looking to see how we finish the year we have to look at the third quarter, is it government spending, military spending that is a key contributor and also inventories will be a key contributor. they were a major drag in q2, and what's the impact of a pull forward of economic activity
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ahead of the end of the year increase and the tariff rate on china. you will get a lot of pull forward economic opportunity >> so c, plus i, plus g, plus net x. we know what goes into gdp how much of that consumer spending side of things is healthy? i only ask because the fed will be watching a number of things we know they do. contrary to what some people may believe, the fed is still data dependent. what is it the fed would have to see or not see for them to move on interest rates, raise them again like the markets think they will in december or perhaps hold back? >> the consumer is the strongest part of the economy. i believe wages are growing quicker than numbers show. the numbers show averages. i think the fed will look at the level of the s&p 500 and their
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contacts telling them that things are slowing down or not >> so are they looking at the s&p 500? are you telling me the fed will look at the stock market and say because of that we'll hold off on interest rates if things keep going the way they are now >> i think that out of the money put is still out of the money, but in this asset-priced dependent economy that the markets have created going back to alan greenspan they will pay attention to it because they look at financial conditions if they see a tightening of financial conditions -- which is an oxymoron because when they raise rates that creates a tightening of financial conditions, they'll pay attention. but the fed has more flexibility than people think. if they don't hike in december, they can hike in january they're stuck but the real interest rate is still zero in the tenth year of this expansion. they need to get the fed funds
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rate above the rate of inflation, then they risk tipping over the economy which leads to reduction in interest rate rates. >> we're one week out from the most important jobs report since the last jobs report what will we look at is it important for the whole calculus that the fed will go through with regard to the rate rise campaign? >> the demand for workers is still strong the beige book this week says companies are not expanding because they can't find enough workers. demand is there. the question is is supply? you can get a softer jobs number, not because demand is not there but because it's getting more difficult in sourcing employees that fit the need of employers. so we have to see what goes into that jobs number the wage number is hugely important, too the fed will use that in their calculus and what they do in december >> peter boockvar, thank you so much for joining us.
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coming up next, emerging markets getting slammed again in this morning's trade the reasons coming up next first as we head to break, check out the futures. things are getting a bit ugly -- well, actually better. the dow off by 313 points. we were down by 360 before the nasdaq off 270 points to the down side. "worldwide exchange" will be right back can be relentless.
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welcome back if you are just waking up or getting ready to head to work, we have a global market selloff in progress. let's get you up to speed on the market action. stock futures pointing negative. the dow down by 327 points if these losses hold. the s&p off by 53 points the outsized laggard, loser today, the nasdaq futures, they are down 270 points. a big driver for that is the f.a.n.g. stocks. two of them report ted earnings yesterday and they were not good facebook down by 4.5%. amazon down by 10% it's now below its 200-day moving average netflix shares off by 5%, and alphabet off by 6% in asia, we did see a sea of red but not nearly as bad as we thought it could have been the nikkei down by a half
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percent. the hang seng off by 1%. the shanghai off by 0.2% the european picture looking worse than even what we are seeing in the u.s. their regular trading has been going. the dax off by 2%. the cac in france off by 2.25% the ftse 100 in the uk off by 1.5% let's check the currency market side of things the dollar is part of that story. dollar strength against the euro, 113.63 is the last trade there. dollar/yen, 111.91 the yen is gaining strength. that's part of that safety trade. pound sterling, 128.04 let's talk about the global market slide in progress joining me is katherine rooney vera from bultick capital markets. also seema mody is joining us. seema, how are things playing
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out in the emerging market side of things, there's weakness but there has been for some time >> that's right. that disappointing read on amazon's earnings weighing on global tech shares names like alibaba and baidu are down this month and this year. technology a big part of why the markets are down right now we have this under-performance that we're seeing in chinese tech names which has such a big weighting in the index aside from that, volatile oil prices and the dollar which hit a high for 2018 yesterday. the stronger dollar, that's never good news for emerging markets, specifically nations that are holding dollar denominated debt that's still a reoccurring concern for investors here >> katherine, we're focusing on the earnings reports,
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technology, but also geopolitical risks are out there as well. in the middle east for sure, but also we have a big election or round of elections coming up in brazil what is it about this political environment that will be driving trading action >> well, there's one other thing that i would add to the list that you and seema just put out there, that's the g20 buenos aires coming up next month president trump and the premiere are set to meet if there's a break through therein that would quell some of this panic we've seen a large part of it has come from trade tensions and fears with regard to an escalating trade war with the u.s. and china. >> so to follow up on that, if we see a positive development out of g20 in buenos aires, this could be a catalyst for emerging markets. we've been looking for catalysts
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before is the emerging markets trade only tied to developments on trade or is there something else to give people a reason to want to step back in the em trade >> there's a reason markets are hating on emerging markets that's one of them there's also the fear on fed hikes. at this point the market is expecting three additional rate hikes from now to the end of next year. that's largely priced in as seema mentioned a stronger dollar is not good for emerging markets. emerging markets and equities do well if the fed hikes are fewer than the market is pricing in, that's a possibility also, this would be good for emerging market risk appetite it would be good for emerging market currencies. i think all we need is a change of sentiment here. this is a sentiment-driven trade. we need a change of sentiment, and that impetus could come from
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china or good u.s. data or a turn around in u.s. equities to get flows looking for yields back into emerging markets >> all right it sounds like you're bullish on emerging markets >> i am. >> thank you very much >> thank you coming up, stocks set to slip futures are pointing to a lower open after yesterday's big rally on wall street what you need to have on your radar as we head into the last trading day of this week when "worldwide exchange" comes back after this break the next thing i know, she swam off with the camera. it's like, hey, thats mine! i want to keep doing what i love. that's the retirement plan. with my annuity i know there's a guarantee. annuities can provide protected income for life. learn more at retireyourrisk.org
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the most compelling stories. ♪ lean on me, when you're not strong ♪ ♪ and i'll be your friend ♪ ♪ i'll help you carry on ♪ ♪ lean on me. here's how your money and investments are setting up stock futures pointing lower by 375 points for the dow this is the low of the session so far f.a.n.g. getting slammed amazon down 10%. google -- i should say alphabet, the parent company of google, off about 7% time to find out what's coming
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up on "squawk box. i have to imagine we're talking market selloff >> we will be. it's interesting yesterday, one thing we were talking about as we constantly question whether we're near a bottom or if we've done enough work on the downside, if we go back up, whether it's by the end of this year or in 2019, does technology go back to where it was or was that overheated >> that's a great point. the communications services, all these stocks were high flyer the. >> take those five stocks. we had -- they were all threatening to be trillion dollar companies like apple, or close. that was a lot of the leadership and big gains we saw was that overdone? we see amazon and google from yesterday, not horrible reports. amazon, did you see how much they beat on the bottom line you can find something is the revenue disappointment,
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is that real is it worth what we're seeing as far as the selloff was there -- were we looking for a reason because everything was too overpriced i don't know it will be interesting to talk about. we have loretta mester coming on >> that's a big interview. >> if we need to see the other problems that we're dealing with, we're worried about the fed, worried about tariffs, now we're worried about just how strong the economy really is we'll get some gdp data. interesting times. >> there's some questions about where the origins of that saying came from. >> may you live in interesting times, i think we're not suffering.
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like lloyd blankfein said on the way in, we're not in those -- the higgins boats headed up -- it's just money, right >> no matter what, we know you'll have an interesting show, joe. thank you very much for that we'll see you at 6:00 a.m. let's talk more about this early morning joining me is dan vera can we step in and buy right now? >> you should be buying. i think this is walmart clearing out its inventory. >> you are telling me stocks are on sale right now. >> we started the s&p with a multiple at 19, now it's closer to 15 and dropping as company profits come in at or above. we're seeing more good than bad, certain pockets of weakness
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within semiconductors, areas like that. we're getting back to a more normalized market. we'll have to pick individual stocks >> pockets of weakness sounds mild when you refer to the semiconductor space. that space has been hammered it's been absolutely demolished. to be fair, it was a huge leadership group over the past couple of years. what would you be looking for? is it specific things? a pe an earnings growth rate? what would you look for from a bottoms-up stock perspective that would get you back in the market >> we continue to buy companies that are executing there's plenty of those companies executing across a wide variety of industries there are outliers that are not doing as well. you mentioned semiconductors, texas instruments gave a lower
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guidance there intel seems to be doing well so you have those areas where you do have strength that's symptomatic of every industry >> you're an investment manager that picks assets, stocks. a lot of hay has been made with the idea that active stock pickers and active managers now are looking to outperform. >> we would have an easier time. the rising tide doesn't lift the bad and the good you have to have a sound process, and you look for companies delivering strong
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financial returns, executing well on a business strategy and deploy that cash flow effectively. >> what would you look for from a risk perspective what worries you now the markets that we have in selloff mode are bad >> sure. >> what could change your thesis >> to get me negative? >> yes if i saw something of a geopolitical nature. milita military attacks, something we have not seen. but i think we're at a point now where we have priced in all the bad. we priced in bad news out of china. we priced in the tariffs and all the ongoing effect of that we'll see the other side as we get further past the election and hopefully into the new year where it's in both parties interests to settle the trade dispute. >> dan, thank you very much for joining us >> thanks.
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that does it for our show. futures opening down about 330 points we'll keep an eye on that. "squawk box" is coming up next they'll have full coverage of this selloff do you hear that?
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good morning if you're feeling good about yesterday's 400-point rebound in stocks, brace yourself for a global market selloff. we'll run you through the biggest movers straight ahead. two of the f.a.n.g.s leading tech lower we'll show you what was in the reports from amazon and google that is driving this selloff. if the market volatility what you worried about your retirement account, you're not alone. the head of aig's retirement division is here to talk about rising anxiety levels and the
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changes you might consider making it's friday october 26, 2018, "squawk box" begins right now. ♪ live from new york where business never sleeps, this is "squawk box. good morning, everybody. welcome to "squawk box" here on cnbc we are live from the nasdaq market site in times square. i'm becky quick along with joe kernen, andrew is out today. we have a big lineup here today. mike santoli is in for andrew. he will talk about what he's been seeing this crazy week. ed lee joins us today as guest host on amazon, we have eric sheridan, and on alphabet, victor anthony u.s. futures at this hour are under pressure the dow futures are down by 327. stat would undo what we saw

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