TO GAINS JUST ABOVE 10,000 FOR
BITCOIN.
A FAR CRY FROM 18,000.
IS THIS IT?
THE BIG CORRECTION THE BEARS
HAVE BEEN EXPECTING?
LET ME GUESS, THE FLOOR SHOW
INDUSTRIALS STILL SINCE THE
BEEN WARNING TO WATCH OUT FOR
THIS VERY SCENARIO WE SEE
UNFOLDING.
GLOBALS FIXED INCOME HEAD ANDY
BRENNER.
ANDY, TO YOU FIRST, LATE LAST
NIGHT, I WAS WON'T UP, I SAW
YOUR NOTE AND HAD A SPECIFIC
WARNING, IT WILL BE A VERY UGLY
OPEN ON WALL STREET AND SURE
ENOUGH IT WAS, SPECIFICALLY
BECAUSE WHAT YOU SAW SPIKING
RATES.
IS IT AS BAD AS YOU EXPECTED?
IS IT ABOUT TO GET WORSE?
>> LIZ, IT'S ABOUT TO GET A LOT
WORSE.
YOU'VE BROKEN THE 265 LEVEL,
YOU GOT UP TO 274.
280 IS NEXT SUPPORT AND THE
DECEMBER 18 HIGHS OF 303.
THE INFRASTRUCTURE PACKAGE TO
BE ANNOUNCED TONIGHT.
THE FED IS ON A WAR PATH, JANET
YELLEN ERA ENDS TOMORROW, AND
IN POWER WILL BE A LOT MORE
AGGRESSIVE.
PLUS THE OTHER CENTRAL BANKS OF
THE WORLD, THE D.O.J. AND BCB
ARE BACK TRACKING.
LIZ, WE HAVE A PERFECT STORM
AND LOOKS BAD IF YOU'RE LONG
INTEREST RATES.
LIZ: THAT'S THE QUESTION, AND
AS YOU LOOK AT HOW THE MARKET
OPENED, DOWN ON THE NEW YORK
STOCK EXCHANGE.
WE SAW THE BIGGEST GAP DOWN AT
THE OPEN, I BELIEVE IT DROPPED
182 POINTS, RIGHT AS THE
OPENING BELL HIT, THAT'S THE
WORST I BELIEVE WE'VE SEEN
SINCE MAY.
IS IT BECAUSE THERE WAS SUCH
FEAR THAT THE COMPANIES WHICH
BASICALLY BORROWING MONEY AT
CHANGE?
>> THAT'S CERTAINLY ONE OF THE
THINGS, YOU TALKED ABOUT THE
CLOSE LAST NIGHT.
THAT WAS OMINOUS SIGN AS
CLEARLY WE SAW A CLOSE ON THE
LOWS AND FAST AND FREE FALLING.
SO THIS MORNING, THAT
CONTINUED.
THIS HAS BEEN AN ORDERLY
AND PEOPLE ARE A LITTLE
PANICKED AND SPOOKED BECAUSE WE
HAVEN'T SEEN THIS BROAD-BASED
LET'S TAKE THIS WITH A GRAIN OF
SALT.
SEE WHAT COMES OUT TONIGHT.
YOU CAN'T BE THAT WORRIED ABOUT
A MARKET MOVE OF 2% TOTAL IF
THIS CONTINUES THROUGHOUT THE
DAY.
>> IT'S TRUE, LARRY, WE STILL
HAVE THE S&P, AND I WAS JUST
LOOKING BEFORE THE SHOW.
UP ABOUT 31% SINCE ELECTION
DAY.
SO THIS IS NOT THE WORST
SITUATION IN THE WORLD, BUT
COULD IT BE THE START AS ANDY
MENTIONED OF SOMETHING THAT
STARTS TO SNOWBALL?
>> WELL, IT COULD, ANDY MADE
REALLY GOOD POINTS, THOUGH I
RALLYING FOR THE RIGHT REASON,
NOT THE WRONG REASON.
LET'S NOT GET EXCITED ABOUT THE
U.S. DOLLAR DROPPING.
IT'S ABOUT GLOBAL BALANCE, NOT
ABOUT FINANCIAL INSTABILITY.
THIS WHOLE THING STARTED LAST
INSTRUMENTS, UNION PACIFIC, AND
CATERPILLAR, AND HOW THEY HAD
VERY GOOD EARNINGS, AND YET THE
STOCKS FELL OUT OF BED.
THE YEAR, THE MARKET HAS GONE
UP TOO FAR AND TOO FAST.
LIZ: I WAS GOING TO SAY,
McDONALD'S CAME IN WITH VERY
GOOD NUMBERS AND THE BUTTERMILK
CHICKEN TENDERS THAT ARE
SELLING SO WELL.
IT WASN'T ENOUGH FOR WALL
STREET.
SO ANDY, WE'VE GOT BOTH TRADERS
SAYING LET'S SAY IT'S
BROAD-BASED, CALM, ORDERLY.
IS IT ABOUT TO GET WORSE, AND
IF YOU SAY YES, WHY?
>> IF THIS IS TO BE, LIZ, I
THINK THE EQUITY MARKETS I
DON'T THINK THIS IS THE
BEGINNING OF THE CORRECTION, I
EXPECT A CORRECTION THIS YEAR,
I EXPECT IT IN THE RANGE OF
10%, BUT I THINK IT STARTS MORE
TOWARDS IN THE SUMMER THAN IT
DOES RIGHT NOW, BUT AS FAR AS
THE BOND BEAR MARKET, IT'S
THERE.
HAVE YOU NEW RECORD HIGHS IN
FIVE YEARS, YOU HAVEN'T BEEN
THIS HIGH IN FIVE YEARS FOR
EIGHT YEARS, SEVEN YEARS, YOU
ONCE YOU SEE THE 3% HANDLE
SUSTAINED, I THINK IT'S GOING
TO BE A PROBLEM FOR STOCKS, BUT
NOT A PROBLEM TODAY.
LIZ: ALL RIGHT, WELL, WHO
KNOWS?
THE PULLBACK IS STOKING FEARS
OF VOLATILITY, BUT SOME PEOPLE
LIKE VOLATILITY.
MATT, LARRY, ANDY, GREAT TO