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Katherine Ross: There's a lot of news driving the market. So how should investors cut through the noise when the Dow's down triple digits one day and up the next. Joining me is Tony Owusu TheStreet's reporter and Chris Versace, Real Money contributor. Tony, first of all, what is driving this market?

Tony Owusu: In a word I would say it's pessimism and that pessimism is leading to defensive trading. Take Domino's Pizza for example. It starts a day up, down big after the company cut guidance, they reported soft earnings and soft guidance. But then the CFO gets on the conference call and he says that they're doing a billion dollar share buyback program. Everybody comes back in, the stock is up big, I think 5% on about six times a normal volumes. So the stock is doing well because people are looking for defensive stocks right now.

Katherine Ross: Chris, trade talks are about to kick off and right now there's a lot of noise. So if I'm invested in a China exposed stock, let's think like Kat, what do I do?

Speaker 3: Well, I would agree with you, Katherine, only is there a lot of noise. There's a lot of uncertainty as to what's going to happen in these trade talks, even if they're actually going to go on for two straight days. But to your point, if you have a company that has China exposure, you need to understand a few things. One, what markets is it exposed to, what's its exposure to the tariffs that we've had and the potential tariffs that we're going to get next week? What's the percentage of that exposure? More importantly, relative to the company's revenue and profits. I think as you start to piece those areas together, you'll have an idea of how impacted it might be but again, the real question is going to be, you know, do we actually get some forward progress on these trade talks or not?

Katherine Ross: All right, so we got to stay tuned and listen, thanks for joining Chris and Tony. And for all the latest news, head on over to TheStreet.com.

Worried about a market selloff heading into the October trade talks?

TheStreet's Tony Owusu and Real Money contributor Chris Versace weigh in on whether or not investors should be worried about a market selloff and what investors should do if they have stocks in their portfolio with China exposure.

Let's start with what exactly is driving markets. 

"In a word, I would say it's pessimism and that pessimism is leading to defensive trading. Take Domino's Pizza (DPZ - Get Report) for example. It starts a day up, down big after the company cut guidance, they reported soft earnings and soft guidance. But then the CFO gets on the conference call and he says that they're doing a billion-dollar share buyback program. Everybody comes back in, the stock is up big, I think 5% on about six times a normal volume. So the stock is doing well because people are looking for defensive stocks right now," said Owusu.

But what if you have stocks with China exposure?

Watch the full interview for more. 

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