s&p not keep pace with other major averages. up better than 1%. >> the nyse, the nymex and on the floor of the cme group in chicago, we start with bob pisani, our eye on the floor. everything that was down yesterday is up today. >> i'm chuckling because we were primed for another move to the downside. they tried it right at the open and it didn't work other than ten minutes down, we have been moving up essentially throughout the day. here's what's going on here. they tried to drop the markets earlier on but it didn't happen. the street had been expecting some kind of pullback. 10% would bring it to 900. we're only 10% from the august 13th highs. i hardly call it a pullback. the bears are insisting there's no sign of consumer spending, uptick in 2009. that's going to drop the market in september and october. the bulls say we know that already. they keep bringing out home depot today. the bulls bringing out home depot ace defense. comp store sales are not positive till the second half of

2010. but the stock's up because they raised guidance. rebecca is going to have more. very important with bb&t because they came out with a secondary increasing the size surprisingly from $870 million to $750. that's an excellent sign here. you'll see a big crowd around the s&p 500 today. they did write down a whopping percentage of the loans, 37%. that's got some people talking. bb&t along with the rest of the financials are leading the market to the upside today. we've got the master trust out of yesterday for jpmorgan, bank of america and american express indicating in general that delinquencies are at least stabilizing or moving in the right direction. finally, let's play hmo ping-pong. remember yesterday, they got killed on concerns that the public -- rose on concerns that

the public option would now be out of the whole health care plan. today, the democrats some liberal democrats are fighting back saying they want it in. hmos to the down side. trader talk.cnbc.com. matt, the nasdaq. >> we're going to be playing times squares beer pong. we mentioned technologies very strong today, four to one positive or 80% of the nasdaq trading higher today were surging in towards a close close to our high level of the session. look down here. what the heck is going on with google? nothing. just sitting there. that's not a good sign. apple scott mentioned the upgrade from rbc first thing this morning. apple rim all with the price target substantially in some cases a double above where they are right now. they think there's momentum in the smart foensz. erickson and dell benefiting from that call. the entire sector is. joy global some of the industrial names bouncing back here today. we're also seeing pakar

benefiting from the sell list. urban outfitters and sears both cresting alongside some of the retailers and the names very, very strong today. first solar interesting story. stock was strong early in the day. you can see it's now given back the head winds of overcapacity and weak demand in solar eclipsing, if you will, their contract that they signed with southern california edison to build two 550 megawatt power plants. the hot stock of the day, the most active in terms of its percentage, 36% higher, the consulting group coming back with better than expected earnings just weeks after the entire management team walked out. that huron story is fascinating. listen, oil bulls had their way today and it caught a lot of traders by surprise. look at the day's chart and it tells a story. what pisani was talking about,

we dipds a little after the data came out. yes, we're tracking equities in terms of oil and a weaker dollar. but a lot of people thought that this is a little stronger than had been anticipated in terms of a rally. next up 4:30 p.m. eastern time, the american petroleum institute gives inventory numbers. the estimates, they're expecting a build of 1 million barrels in crude, a draw down of 1.4 million in gas as well as a build in 400,000 barrels in distill lats. people are asking me, what about the storms are they creating a concern? there's a lot of concerns about the storms in the gulf. nat gas is down for the ninth consecutive day. also, gold correlating with the dollar. a very tepid day in gold. rbc says one of the slowest trading days they've seen in gold in a long time. >> i agree with you, brian. probably because it was a slow day in foreign exchange as well. the dollar is lower and gold and

crude are higher. take it for what it's worth. listen, what is a ten-year worth? you know, i always like to look at other countries' ten years and look at patterns. today i want to pay attention not how we arrived where we're at in terms of yield but how they all look bearish. let's look at a six-month chart of the lowest yield on the three i'm looking at, the euro, euro ten-year, the boone hovering just under 3.30. look at the right side how it's dangling. look at the u.s. ten year up a whopping four basis points on a quiet day maybe because stocks are up. it looks as though rates are going to go down. the uk is the last, in the mid 360s. the patterns aren't necessarily exactly the same but the right side of the charts are similar. is that a statement about questions about growth or is it a statement about maybe less supply in the future?

we know that's not necessarily true for the u.s. no matter how you slice it, it looks a bit bearish. >> thanks very much. we have better than expected earnings out of the retail sector today. rebecca jarvis on that beat. >> it was stronger than expected quartly profits across-the-board. there's a caveat. the beats aren't because of sales growth or return of the consumer. instead, they are the result of heavy cost cutting and successful inventory management. home depot chairman and ceo frank blake says he doesn't expect to see same store sales grow till the second quarter. he topped expectations, raised guidance on earnings but sales fell 9% with the average ticket also declining. a couple hints of optimism in the report. the number of customer transactions is improving. hd is gaining share over the competition. six of its 13 departments captured a larger percentage of the pie in the quarter.

discounter target delivering a quarter that beat on the bottom line. earnings 13 cents ahead of estimates. again, sales were a little light and the story stronger than anticipated operating margins in the retail segment and this one is important, a credit card segment in line with expectations. health care, food and beauty among the strongest categories. also noting more affluent consumers are turning to them. speak of affluent consumers, luxury department store chain sacks delivering a smaller than expected loss thanks to expense controls and tjx one of the few to see both profits and sales tick higher. the ceo says traffic greatly increasing but the average spend on a per customer basis is still a bit down. the key is discipline. these retailers are proving they've learn it had from previous mistakes. the question going forward is, will sales growth snap back before there's no cost left to cut. that will be a big one. >> that's a really important point.

thanks so much. rebecca jarvis. joining us now, rich peterson is with us. along with greg olsen, gentlemen, always nice to have you on the program. how are you investing in this environment? >> we think the market may have gotten a little bit ahead of the economy and we wouldn't be surprised if we see a couple more% and on the pullback. as we see these, we're looking for opportunities to put more money to work because we think the long-term trend is going to be up. >> yesterday we had this decline which started in china, goes to europe and then in the united states. here we are back in bull market territory again. >> if i said it once, i said it many times. like a shamwow! market. goes higher. we had the bad news coming out of china yesterday and make up half the yesterday's losses. the fact that we're looking again in a day, all comes down to profits, about earnings. s&p 500 is probably going to

earn somewhere short of $60 per share in 2009. you put a 17 multiple on that, looking about a year and target about 1020, look out for 2010, the census forecast for double digit increase, some on the upside, $70, could be in the mid 60s. you put a 17 multiple or so on $70, at the year end 2010, somewhere approaching 1200. in a way the market is rising. right now it's looking for higher gain. >> greg, your strategy is precisely what's keeping the markets from going any lower. you're buying opt dips. so are most other people. everybody says the market's got to correct. yet, when it goes down, people jump in. >> we find there's a lot of retail investors that missed this up run. even though they know the market is probably fully valued they put money to work when they have the opportunities to do so. we look for beaten down asset classes. when those opportunities present themselves, we add money to

those asset classes. >> rich? >> despite the fact that earnings are expected to grow incrementally next two quarters in 2010, still not without many head winds. consumer delinquency rising. housing inventory still not fall. unemployment heading higher. so i mean the concern that we're out of the woods knit soon is probably very tenuous. but the fact is we'll see future gains. >> what kind of recovery are we looking for in the new shape the square root as we were talking about, what are you guys looking for? greg? >> consume ser 77% of the economy. right now we see the consumer tap out. trying to add to savings and pay down debt. with a tapped out consumer, we don't see this huge recovery come. but do hopefully see in the 2 to 3% growth which will hopefully, although a tepid recovery adds to the stock market over the

long-term. >> rich, let me ask you this. you see so much flow. you're looking at ipos, you're looking at where the money's going. what are the most important events that you're going to be looking for in to year end to make you feel you've got confidence in a stock market rally? what's most important to you, putting earnings and revenue aside. >> i look at m & a numbers. m & a for the third quarter is horrific. only about $35 billion in announced deals this quaerlt to date. one of the lowest periods m & a since 2003. there's a high correlation between m & a activity and gdp growth. the fact the recover is going to be very, very lack lust tefr. >> greg olsen, rich peterson, we'll see you soon. 45 minutes and until the closing bell sounds. a market holding onto the moves up 90 points on the dow industrials led by tech and financial. >> just about everything that was down yesterday, maria, is to

the upside right now. the dollar has gotten beaten up since early march. we'll discuss whether this is the start of a come back or if there is still reason to bet against the dollar. >> small caps outperforming the broader market for much of this past year. after underperforming recently, is it time to turn to the safety of a large cap. >> we'll talk about the state of the consumer and the retail industry with the ceo of sacks. it is a first on cnbc. >> first, here's a reaction on the street. the most heavily traded stock, money moving into the financials. back in a moment.

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>> welcome back to the close bell. i'm mary thompson with your realtime flash. the stock of the day, generally motors handing over 110 million dollar payment to the auto partsmaker along with 100 million dollar loan.

american axle needs to renegotiate the terms of its loan and has till the end of the month to do that and you can see investors like that news. they're hopeful. again the company can stay solvent. >> thanks. now let's take a look at today's business headlines. the labor department reporting the producer price index fell last month, triple the drop economists were predicting because of lower energy and food costs. the core ppi slipping .1%. wall street was expecting a gain of .1% year over year, wholesale prices have plunged a record 6.8%. the commerce department reports housing starts unexpectedly fell 1% in july to a seasonally adjusted annual rate of 581,000 units. that's because of a steep drop-off in apartment construction. single family home building actually rose nearly 2%. new building permits meanwhile fell by a larger than expected 1.8%. later in, an exclusive interview, we'll ask the ceo of putty homes if he thinks the

housing market is finally starting to turn around. >> a bold prediction from elliott wade international on the program yesterday. bob was with us and told me based on his technical analysis, the dollar is about to rally and is forming a major bottom. >> here we were on the 5th of august. this is one of the reasons i published early. only 3% bulls 0 the dollar, looked like we were topping out in the stock market. if these markets continue to be contracyclical, you're going to see a rising dollar for quite a period of time along with falling markets in the other direction. >> so what about that? is the green back making a comeback? joining me is mike moran, strategist with stranded charter bank along with alan rush kin with royal bank of scotland. good to have you you on the program. >> my pleasure. >> what do you think, alan? do you agree the dollar is about to rally. >> i think it is forming a bottom. some of the european currencies,

i don't think it's forming a bottom against some of the riskier currencies like the brazilian or the chinese yuan. against the euro, i think values like 1.47 or 1.50 are great opportunities to sell and buy dollars at that point. >> mike, do you agree with that. >> i certainly think we're going to see some strength in the dollar. just the story was mentioning the 3% dollar bulls does suggest we are in a very crowded trade at the moment. i think we're going to see the dollar consolidate for the next few weeks and looking at basically shorting the dollar against especially against eu currencies. >> maybe we see some dollar strength over the near term but back on the short side soon after? >> we've seen the dollar index bottom out in march, did again in june and then early august again and it's followed by

perhaps three or four weeks of consolidation before the pressure comes down. the technical story certainly suggests we see some dollar strength. i'm still very suspicious about the u.s. dollar especially in relation to some of the currency values in other markets. >> particularly in the face of twin deficits which has been the major issue in the past for the currency. al ln, the fed continuing to print money as they say. it's diluting the dollar. you would expect it to. what's actually supporting the dollar? >> the fed is no longer printing dollars which i think is seen as a very, very good thing. when the fed was really embracing qe, i thought there were some risks that euro/dollar could perhaps go to 1.60 or even above. the fact that the fed is now moving towards letting the market set interest rates suggests that we'll be sucking in huge amounts of foreign inflows to finance our domestic deficit and those will be very,

very large in relation to the current account deficit which has shrunk enormously and i think provides the backdrop for a stronger dollar. >> that's a very good point. it's true. let me ask you about the implications, the practical implications on all of this from an investment standpoint. let's say i do believe the dollar is going to have a rally just as a trade over the near term. what do i want to do in terms of investment? do i want to be buying those companies on equities that may benefit from that? do i want to just go straight to the currencies, buy dollars and short some of the other currencies? give me your practical investment trade mere here. mike. >> i'm only going to talk about the currency side because that's what i focused on. certainly we're looking at stronger growth in some of these asian economies. we've seen the numbers improve. >> the japanese yen? >> as a technical trade, risk averse, very short-term trade, yes we're looking at some of the yen crosses. if you're talking investment, we're looking at a korean yuan,

indonearby both have shown strong numbers on the growth side and the valuation side, look at the effective exchange rate models, still undervalued if from a long-term perspective. valuation, we like those. certainly from the latin americans for example, brazil, 20% over 20% rather over the course of this year. it will be difficult to replicate in the second half of this year. there's still going to be some value in the commodity currencies in the weak dollar backdrop for the rest of the year. >> alan, what about that? >> well, i'd also agree with mike there in terms of some of the riskier assets. the risk appetite story will fade over time. i think it's too early to fade the positive risk story. so i think if you looked across the different regions, brazil i think is a decent bet. indonesia and asia is really the

favorite there. even turkey is not bad. so those are some of the better bets as far as the emerging world is concerned. in the european side of things, one should look at cross rates in particular. i like sweden versus euro. i like the knock can i, the norwegian kroner versus the euro, as well. those are very, very good cross rate bets. as far as the dollar, i think you've got to pick your opportunities and wait for levels like 1.45, 1.46 on the euro/dollar and then sell at those kind of levels. i don't see the fundamental arguments to embrace a much weaker dollar from here. >> should i be doing this through etfs? what do you think about that strategy? >> you can but i think really for the average investor, i think you just want to keep to spot-related trades and just focus on individual currencies wherever you can. you know, i think there are a

variety of different ways you can express a currency trade. just go to the heart and go to spot i think. >> would you buy the chinese yuan. >> a tough one. that's one for the professional trader. >> you can do that through an etf, as well. >> you can do it where if you actually look at the five-year forward, it's not the most liquid contract but that's only looking for appreciation of about 4%. i could see that appreciating by at least 20%. so that's one really for the professional investor. >> mike, what do you think? do you like etfs when comes to currencies? >> i think it's certainly an option of a few more emerging currency eamericaning markets for choice particularly on the china, i'm not quite as bullish. i think there's enough issues that the government is facing they're going to tamper with a great deal with the exchange rate at the moment.

i don't think that's the best bet over the next three to six months. >> thanks so much. >> we've got 35 minutes before the closing bell sounds for the day. dow industrials holding on to a gain of 86. >> the battle over health care reform is deepening. details of the latest nbc news d health care poll when we come back. of their dreams. during the lexus golden opportunity sales event, you can do both. special lease offers now available on the 2009 is 250.

let's take a look now at how some of the widely held stocks are trading. first the financials led by citigroup, bank of america, jpmorgan, wells fargo the only one to the downside on that pain. here's how other big names are faring. exxonmobil be giving a little bit back today. it is a parent of this network general electric to the upside today. >> health care dominate the country's attention these days. a new poll shows increasing opposition remains to what has been a key part of president obama's reform proposal. when asked if they would favor or oppose creating a public health care plan, just 43% of those surveyed were in favor. that's down 3% since july. 47% of those surveyed now oppose a public option up 3% over the past month. 45% do say a public health plan would lower costs. that's up from july up about 4%.

and only 48% now believe a public plan would limit access down four pounts. so while the president has made some progress on the issue, he still has a long way to go in selling this plan. the rest of that poll will be related tonight on nbc news at 6:30 and cnbc will bring you the results 6:30 p.m. eastern time. senator chuck grassley will be with us explaining why he is against a public option. >> the problem with the public option is the think tank says that 128 million people are going to opt out. 120 million people opt out, 15 million people in private health insurance, pretty soon you don't have private health insurance and have you what they have in other countries where the government runs anything. then you have rationing. americans will not stand for rationing. >>. >> grassley on cnbc earlier. he says the bottom line is a public option is the first step

toward a government takeover of health care. scott? >> maria, right now let's take a look where the markets are sitting. the dow up 85 points. nasdaq strong today, as well. technology stocks again rbc getting a nice upgrade in price targets and some of the smart phone names today and financials leading things to the upside. >> look at that russell 2000 up 1.5%. the couple of stand outs to pass on is exxonmobil down, boeing is lower and walmart lower today. the small caps up 175%, up nearly 60% since early march, easily outperforming the rest of the market. have they come too far too fast? we'll check on that after this break. and yet, some people need to sell and other people want to buy. this is a moment of challenge and opportunity. fortunately, re/max agents have the experience to help you meet the one and recognize the other.

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welcome back. we're in the final stretch here. about 25 minutes before the closing bell sounds. we've got a market pretty strong holding onto the moves. exxon is a standout on the downside. walmart is also lower as boeing is, as well. however, the financials are

doing quite well. you've got the likes of citi and jpmorgan and bank of america up between 3 and 5% actually. technology also doing well with google, amazon, ebay all higher on the session. as a result, dow industrials up 83 and the s&p 500 higher by ten points, about 1%. >> small cap stocks have had a big run. check out the chart we're about to show you. the russ 2,000 gaining compared to a 46% advance on the broader s&p 500. >> has the rally in small caps run too far ahead and is it time to search for safety in large caps? to talk more about is that is son america asset management it along with u.s. small and mid cap equity strategist with citi. goode thanks so much for joining us. nice to see you, particularly in an environment when the russell has done so well relative to

everything else. laurie, do you think this group is getting ahead of itself. >> i don't. one of the most useful comparisons is we can make is the 19 2 recovery. basically at this point in time, we're exactly where we were in that recovery trade. 200 days after the bottom in '82, we were up 98%. i definitely think there's another leg up for small caps. >> what's driving this move and behind the mover in small caps relative to large. >> typically we see small caps start to beat large caps when stock market volatility false. we've come down a lot since the beginning of the year. the other thing you have to pay attention to is credit. when credit improves, when things get less tight, we also tend to see people step up to the plate, take on more risk and buy small caps. >> steve, is there moore room on the upside for small caps? >> probably so. ace an large cap manager, now is the time to buy a large cap because they've lagged a little

bit. when the market believes there's going to be a recovery in the economy, they buy riskier names and they tend to be small caps. in the large cap world right now, we're buying riskier names that are 10 million market cap and higher. i think large caps and small caps have been about the same. it seems you have this flip flopping effect every other year. >> how much more to the upside do you think small caps can do. >> right now trading 15 times next year's earnings. the growth rate for those names 13%. we've had a great run from the bottom. i think we settle in for both large and small for a while. >> you've got a nice combined look at things in the portfolio. what do you like in the large cap area? then i want to switch over to small cap for a moment. you're a large cap guy. >> large cap lagged a little bit. to make up for it with the market settling in here with the outlook improving, we're buying

the larger names. i think that goes up 50% in the next six months. >> 5-0. i think yahoo! which reminds me of ebay. everyone who hates it has a price target of 17 to 20. stock's at 15. that's another higher bate kind junkyer quality name whose business isn't broken. >> what's going to boost yahoo!? everybody thought it was going to do a deal, $31 was too low. what's going to be the cat lit to get it moving. >> like ebay people will recognize the value of al by baba $3 a share, improving display business and search which is being taken over by microsoft. i think it's a sentiment trade. sentiment improves for it. >> laurie, what are your thoughts on technology playing off what receive steve as i saying about yahoo! >> i do still like the technology sector. the valuation drifted back up

toward long-term averages. the reckoning we've had lately is warranted but still like the sector in the second half. >> where is the value in the small cap area? do you think the tech represents value or are there other areas. >> we did a piece that excited me from a multicap manager's perspective. if you're sort of picking between small and large, we think some of the best values is energy material, consumer discretionary. >> of the small cap area that you do like because do you have a nice mix what, sectors are you focused on. >> some of the managers at my shop are be league at some of the restaurant names beaten up, the fundamentals for restaurants have been bad, sales down 7 to 10% and valuations are getting interesting. if we get an economic recovery next year, driven by the government printing presses, then restaurants are a beaten down names that can do well. which would be burger king and tricon. >> now the data the consumer is

still not really doing anything though. >> we're very hesitant. 70% of the u.s. economy is the consumer. but i guess if the government keeps on printing cash and making credit available for consumers, they will spend. consumers are not particularly concerned with balance sheets which are stretched right now. >> there's a dividend story when it comes to large caps versus a small cap. are you looking for dividend? is that one of the drivers in terms of finding value. >> if you look at how large cap value names have done, the average dividend on a large cap value stock is about 3.5%. for an s&p 500 name, 2.5%, for a small cap company, 1.5%. over five years that increased dividend yield adds up and can be half the total return on the fund. if you think the market's going to settle down, you buy high dividend and yield companies. >> do you care can about dividends, laurie. >> it's not something we pay a lot of attention to. you're buying small caps for the

return potential. when i think about the next 12 months, you know, we've typically seen small caps not only do well versus large caps late in recession but also in the year after the recession is over. steve might be right longer term. for the next year, i think this is a good place to be. >> where are we going from here. >> with the s&p up 13 times next years earnings i think a fair multiple may be another multiple point higher. so i think five to 10% from here. maybe in the fourth quarter, we could have another run as numbers look cheap versus next year. >> you think 13% is a decent number? >> yes, another 10% move from here. we've had a hell of a move in the last four or five months, 40% from the bottom. investors are caught up in that now and we need to settle. >> are you sitting on cash. >> we recently bought yahoo! and transocean things looked pretty cheap. we're 2% cash right now.

>> how about you, lori, would you recommend diversifying out of small caps because of the 80% move? >> if you want to diversify a little bit, i'd look at mid caps. >> mid cap is gauged as what would you say? >> 2 to 10 billion market cap. when we've had down drafts in the market and seen liquidity fierce rise, people are running into mid caps. there are a lot of good names in there. >> they act better on the downside but tend to do a little bit better than large caps. you can have your cake and eat it, too. >> your feeling about the broad market. >> in augusta and september during recovery trade years, we would usually stumble a little bit. we could stumble a little bit more but ultimately i think there's another 10% if not higher move in there. >> good conversation. really good. thanks very much. interesting, steve, laurie, we appreciate it. >> we've got 15 minutes before the closing bell sounds and this market holding on to a gain of

87 points. volume under a billion shares. typical for august but no surprise we do have money moving into the market once again. >> better than expected retail earnings at target and home depot giving investors confidence after monday's big selloff. do you want to own any retail stocks right now? >> housing starts falling last month but construction of single family homes increased. the ceo of putty homes will be with us at 4:00 p.m. eastern, join us. 

>> welcome back. stocks regaining ground today. here's a look at some of the wildly helds out there. the one standout on the downside is walmart. strength across the board, alcoa, home depot, hewlett packard. we'll have those numbers at 4:00. microsoft, intel, ibm, apple google all higher. >> time for the final call. better than expected earnings in the retail sector have sparked

some confidence from investors. is this the time to buy retail? here with answers on that is patricia edwards of store house partners. nice to see you today. >> nice to be seen. >> as we said, in the lead-in today, some of the retail news today was certainly better than yesterday. definitely in contrast to what we heard from lowe's. what's your thoughts on retail right now. >> i think it's still pretty tough space. the trade has been to the high side. we've been looking at high bate stocks and your gusts were just talking about that. the reality of the economy is still going to come back. given that, i either want protection with actual revenue growths that are backing up earnings or i want to have some of the best operators in the space because these retailers are really going to have to separate the men from the boyce going forward and have to be able to cut the costs and but not cut to the bone and got to be able to drives the traffic and the sales in the store. that's really hard to do. >> how do they do that? >> it's a balancing act. it's all about getting the inventory and the cost side of

things right but making sure they've got the right product. having it at the right price points. that is really like i said, difficult to do. i think some of the best folks at that folks like j crew, the buckle, and you know, i know i keep saying it but walmart. i think they're underappreciated. >> when you look at retail in general, there's really no sign that the consumer is feeling better about much these days, right? >> no, the thing is, i don't think the consumer should feel better about much right now. they've got a house worse a third less than it was before. they've got credit card limits being cut and don't have any money to use or any credit to use to make purchases with. you have unemployment rising. you have this cash for clunkers thing that took what, 300,000 people who didn't have a car payment and gave them a car payment. you know, you look at the landscape and it's hard to believe that the consume ser requesting to bounce back from this in any significant way. so you've got to have the good

operators that can operate at these levels. >> when is retail going to bounce back then? >> the stock prices have already bounced back. you look at target up over 60%, you have a couple of key retailers up 60 0%, j crew up something like 277 percent, i think, there has been a huge bounceback in anticipation of the consumer coming back. so the question is, going forward, who's got the goods to support that and like i said, i want to see revenue growth which leads me straight to the buck. >> where are we heading from here? you're pretty bearish on things, right. >> i sure am. i think the last time i had you on here, we were going at it pretty good, right? >> yeah, it was a bit of a smackdown. i am pretty bearish. i'm still bearish. i'm still personally short this market at this point with what i like to call chicken plays on the upside. i own walmart and costco at this point and i think you can own select stocks but still be

negative overall. this market has stayed irrational longer than i could have stayed sol vent. if it is a bear market rally, it's not about a climax of sellers. it's about the last marginal buyer getting in. once that's happened, then you see the drop-off. >> i know, but every time we think that the market should go lower, we woke this up morning thinking there was no reason why the market shouldn't continue the slide that we had yesterday. here i look up, the dow's up 90 points. >> it is totally irrational in my eyes. but given that, you've got to protect yourself. like i said, if you want to play, play with the revenue growth. don't be so fooled by the earnings. >> how far down are we going to have this correction that you think? are we talking 10%, probably most favored in terms of a number down here on floor? >> know, 10 percent, i think is a teddy bear correction. and given that, i think that that's a pretty safe number. i think it depends on how bad

some of these numbers and some of the guidance comes in. how about some of the retail comes in. if things really start to unravel, it's something we do not expect coming. the dog that bites you on the butt you never see come. given that, maybe it's only 10% and that would be nice because it would have taken some of the steam out of this market. but if something happens and god only knows what it will be, but i have a feeling there are enough shoes out there to drop, then i think we could retest the march los. there's a number of other people talking about that. >> good talking to you. come up on "fast money," as stocks rebound on this turn around tuesday is, it time to get back in this market or is this a head fake? plus all the after hours action from hewlett packard, the conference call there and the best way to trade the earnings news there. we said there are about ten minutes to go. the dow holding on to gains just shy of 100 points. technology in the spotlight with the hp numbers after the bell.

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>> hewlett-packard getting ready to report third quarter earnings. jim gold plan joining us for a preview. this is a big one. >> no question about it, scott. good afternoon to you. the pressure is on hp not just to meet but beat expectations whether he the company reports its third quarter. the street's looking for 90 cents a share on $27.3 billion. but with shares up about 20% on the year, rallying again today, not to mention the good news investors have already heard from the likes of ibm and intel, analysts are looking for hp to signal the beginnings of a tech turn around.guidance as always is the key, as well. we'll have it moments away. keep in mind a stock savant if you will, hp hasn't missed consensus since july of 2004. so keep that in mind as we await those numbers. >> we'll be watching for the numbers certainty and what it means for tomorrow's trade,

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and welcome back to the floor of the new york stock exchange everybody. i'm scott wapner with your closing countdown. we woke up this morning picking up off of yesterday's big slide asking the question is that the start to this correction that the market is supposedly look for? here the market is sitting up by 72 or so points. technology one of the leadership groups today. really everything that was down yesterday is up and up substantially today. i mentioned the tech story. hp out with big earnings after the bell. you have to stay tuned. dop of the hour we'll break all of that down for you. the names particularly from the smart phone space today getting a nice lift off an rbc upgraded and a raise of price targets there. the financials getting a bit of a boost today. goldman sachs got upgraded, as well. citi was up 3%, bank of america, jpmorgan getting a nice lift. commodities yet another one of the spaces that was down yesterday. but up today. taking a look at oil, just shy

of the $70 right now. some of the retail news, certainly better today than what we heard from lowe's yesterday. there's the bell. the "closing bell" continues. >> and it is 4:00 on wall street. do you know where your money is? hi, everybody. welcome back to the closing bell. i'm maria bartiromo on the floor of the nyse. tonight, a rally underway. looks like stalks staged a biggs comeback led by better than expected retail earnings and growth in single family home building. the rally giving a boosted to the energy markets, oil up $2.44 a barrel, better than 3.5% closing at $69.19. hewlett packard moments away from reporting third quarter earnings. going to be a big report because it could set the tone for tomorrow. we have instant reaction, inside info about the quarter for you

coming up as soon as they hit the wires, we'll have the numbers for you and give you the investor reaction. take a look. the dow jones industrial average holding on to a gain although off the best levels of the session with a gain of 81 pointw about 1% at 92.16. nasdaq strong, technology one of the leadership groups along witp financials, up 25 points on nasdaq, better than 1%. and the s&p 500 tonight up ten points, about 1%, at 989. all the action from the floor from bob pisani. >> the important thing is we flipped around completely over yesterday. the big selloff really hasn't occurred here. that's what's important today. so we were expecting declines. some people as much as 10% on the s&p 500 in the next few weeks. didn't follow through today. take a look at stocks moving. bb&t got off a secondary. not only did they get it off, 750 million shares but increased from