by turn navigation and once again siri integration. >> three-d maps. not just wi-fi. some people don't have maps. now they will. >> i will get to the best of bottle of blue nun money will guy. thanks for watching "street signs." hello. welcome to "closing bell." i'm michelle caruso-cabrera. in for maria bartiromo. she will be back tomorrow. >> i'm bill griffeth. i'm here today but not the result of the bolts we are looking for today. spanish troubled banks did get the bailout as expected over the weekend. but the news not enough to convince folks to start buying. they bought in the open but then started selling right after that. that's part of why the averages are being led lower today by key groups like banks and tech follow ja --

technologies. looked like the dow would be a stellar beginning of the week. then it started to fall apart. down 57 points right now. about the low of the session at 12,496. nasdaq is down 247 points. also the low of the day. four percentage decline there. s&p down half a percent or seven points at 1318. >> we used to get a full rally out of a bailout. six hours. >> so jaded now, aren't we? >> another reason why we are lower, apple. the stock giving up early gains. investors were less than wowed what they heard from the conference in san francisco. despite new announcements of pro and air laptops. we are going to look at what today's news means for apple stock on the "closing bell." let's get to this story. you would think that the spanish bank bailout would haelp the market. rather than taking the sidelines as they remain worried about europe's ream underlying problems, you know, the problem

is spain, but now they are turning your attention to greece. the upcoming election. >> big election on sunday. is the reality finally setting in for wall street? we asked bob pisani and david kelly, steve liesman joins us as well and rick santelli as well. steve, why did this blouailout l to impress? >> subordination is part of it. >> explain that. >> the idea as a private investor i would come in behind the european governments who would be helping out spain. so it doesn't really present a clear path here. which is that what we know now if you give money to spain, spanish banks, spanish banks can buy government debt. who else will buy government debt and come in behind the european assistance out there? i think that's a big part of the problem. plus, i think it is failure to follow up there is no bigger talk of a larger coming together in europe.

what i have -- said for a long time, every time they stabilize the situation, you see the stabilize at a lower level from where they were. which just -- goes to show you they remain continuously behind the market. >> rick santelli. i mean, we knew the subordination issue was there. why did we even bother to rally to the open this morning? what happened here? >> i think the subordination issue is big. i think that any kind of a plan, first of all, is a catalyst for reversal of positions that make -- have been established that were a little bit more dire. but these markets are hard to understand, bill. i think that just because the risks of a market seeing any kind of a plan is that equities rally and university rates for a while move lower. it is the long-term effects. that's what this bailout plan taught us. interest didn't last one cycle. >> david kelly, what do you -- how do you look at the market reaction today? what does it tell you in terms of where we are going in europe? >> i think the problem is that

the -- spanish bank problem cess enly financial problem. but the greek problem is a political problem. when europe is being -- they can find solutions to financial problems, they just aren't able to deal with the political dilemma of how you actually get greece growing again without seeming to reward them. i think the -- hung up in this political issue here. until we get past the greek elections next sunday, if we don't get a good result out of greece and all tv had is for naught, that's -- political problem that has not been solved yet. >> bob pisani, welcome back. you feel apple has as much to do with the sell-off today. >> yes. here is the problem. the apple announcement failed to impress. i mean, facebook integrated ios6. that's nice. that's not iphone 5. we faded down and the s&p faded along with it. let me comment on the spain thing. this is the first time a european bailout failed within

hours. michelle is right. it is a little bit morning just the subordination. i agree that's an issue. they are saying we are no longer impressed with piling debt on debt. they want debt restructuring. that's not going to be easy. they said not -- geez -- greece, forget it. that's the only one. that's not what the market is saying they want and want restructuring of the other european economies. >> as we learned in greece, doing it for years. david kelly, we have the elections on sunday. what, if anything, should an investor do all this week? there's so much uncertainty about what will happen there. >> what we have is a buy mobile outcome. on a shift and heading for big waste. move to the middle of the ship. for long-term investor, it is too dangerous to take extreme positions. also remember one other thing. over the years we have seen valuations become more and more stretched. right now stocks are still very cheap relative treasuries here. generally stocks are cheap high

quality government bonds around the world. you know, i would not become more cautious here because valuations are very stretched. it could be a rocky ride next week. >> steve liesman, quickly, any of the loss on our own fed? >> no. it is actually good timing. i was thinking about this. we have that boat on the 17th and the fed meets a few days later. it is up in the air. i was actually using a metaphor similar to david's in the sense the ball is in the air. what do you do? you run halfway to second base. being in the middle is about the right place to be right now. i will say one thing that maybe the market is not taking advantage of is that it seems like we have taken the apocalypse off the board there. when they come in and they say they are going to backstop the banks, give money to capital, that would appear to remove the possibility of these i am meant -- i agree if anybody -- >> hey, steve -- >> solution is not there. >> steve, you know, when our t.a.r.p. program -- they put equity into the banks.

equity. that's another reason people are saying, as you said, enough debt. they need to move -- try another strategy. >> debt on debt on debt. >> thank you. david, nice to see you. thank you for joining us. appreciate it very much. fallout in financials is drag thing market lower today. courtney reagan is at our real-timex change with more details. >> benchmark s&p started the day higher. immediately started shutting the gains throughout the session. narrow range. large cap sectors, you can see behind me are mostly negative. financials leading the way lower. tight from materials edging them out. the s&p financial sector is the worst performing big-cap group over the last three months. down 12%. today perhaps isn't a surprise. citi is one of the group's biggest losers today. investors are paying closer attention to the decision not to return more capital to shareholders at least this year. shares are down more than 3.3%. there's also some significant rheaume force the energy sector today. we don't want to leave them out.

coal producers selling off again. malresources trading at all-time lows. shedding 13% in just a week. you can see down 7.5% today. but shares of valero moving higher. key equipment, competing enterprise refinery in texas could be offline for some sometime. shares of valero up to lead the s&p 500 higher. looks like shares are up more than 3.5%. brian, over to you. >> thank you very much. >> i-want to take a look at g m garmin. mapping replacing google maps. through siri you will have turn by turn navigation. you see another leg down to that stock. just a little while ago. down almost 8%. michelle, i don't know about you, but i tried to use my ipad for directions in the car sometimes but you have to look at it. it is dangerous.

if it can talk back to me, what do you need your gps for? >> very good point. >> exact there reason to have an ipad. >> i have a laptop. >> too much technology. >> i'm all spread out at once. okay. how many minutes? >> where were we? >> 15 minutes before the closing bell. negative territory by 71 points. >> how long have we talking about this? big u.s. banks bracing for downgrades from moody's. going on for a while. jamie dimon is set for a capitol hill grilling wednesday. is piling on america's banks right now really the best thing for our economy? we will talk about that. >> then an even shinier apple. it is apple's annual developers conference. what did the developments today do to the stock? >> are the announcements enough to make you buy the stock at current levels?

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welcome back. about 48 minutes left in the trading day. we want to do a quick market stat. get you caught up on the day p. stocks declining near session lows. selling sin tense tieing now. growing disappointment about europe's aid package important spanish banks. right now the dow is down 84 points. was up 96 on the open this morning. on pace to snap the first four-day winning streak we have seen for the dow since april 27. financials and materials have been among the losers today. telecom, one of the only s&p sectors gaining ground today, s&p telecom index hitting the best level in roughly four years. very much a safe haven play given its high yield factor. jpmorgan chase's jamie dimon set

to city the hot seat before congress in less than two days to explain how his company lost the billions of dollars those bad trades they announced a couple of days ago. will he be there -- how much of a spectacle are we looking at? this as speculation swirls a downgrade of u.s. banks by moody's could come any day now. a topic maria asked morgan stanley's ceo about recently. >> the fear out there is that you will see a two to three notch downgrade from moody's and that will mean a $5 billion to $9 billion collateral call. how much capital are you going have to raise? >> won't raise any capital. we have the liquidity to cover the collateral. we full will you expect that there will be some, as i said some downgrade. we had the liquidity. this is why we built the liquidity board to take into account all unexpected potential outcomes. interest won't have an outcome on our capital at all.

>> is he right? will the bark be worse than the bite? we get into that. guys good to see you. ed, let me start with you. i felt the minute there is a downgrade you have to worry about having to put more capital towards certain trades and certain parts of your book. is that incorrect? >> no. that's correct. they have to hold more collateral once they get downgraded. it is going to reallocate where the assets are to the collateral. not really going to affect them that much and won't see any capital raises as a result of this. >> do you agree? >> i would agree. interesting question will be if there's going to be a greater divergence in ratings will some banks win and some lose? that's the bigger question. >> then as a result, you really start to get a multi-tiered system which many people talked about a long time. you see tonight the ratings. the implications for investors are what? >> better banks. >> well said.

>> why now? i mean, at this point what has happened? i thought banks were in better shape than they had been in a while? they have been raising more capital. they have been reducing their risk exposure urs. jamie dimon and jpmorgan notwithstanding. why would we be talking about another downgrade by moody's right now? >> i think there is a lot of unknown risks out there. you know. i think european fears have people looking more closely at what the real risks and financial system are. we saw a major collapse of that in 2008. we are certainly healing through it. not all those issues have been addressed. you know, we just have the proposed rule from the fed on basil 3. those are not in place yet though every bank is working towards those. there are risks everyone wants to address that have not been fully addressed. it is better to be safe than sorry. >> what do you think about when jamie dimon goes to testify later on this week? is that going to have any impact on the banks at all? >> i don't think it is going to be a significant impact. i think he's probably still going to be limited as to detail what he says. i think the real issue will be

once the regulators can conclude their examinations and they release whatever elements of that they release or whatever sanctions they put in place. >> don't you think that this -- this plays right into the pro-regulators' hands now in congress. don't yo think this leads to more regulation? they can always point to the smartest guy on wall street in jamie dimon. if it happens to him it can happen to anybody, right? >> i think -- the interesting thing here is that jamie dimon has been very, very clear that there were rules that were broken. when it got past a certain dollar amount, it got escalated past that business unit. and it shouldn't have happened. and i think that will prove -- first to say that. i don't know that it really -- gets a lot of relevance above and beyond this instance. >> in answer of the spirit of the question, once again, lawmakers look at jamie dimon -- supposed there smartest guy out there and can mess up like this, what about the rest -- what do you think, ed? >> i think it is important to

recognize jpmorgan caught it. regulators didn't catch it. at the end of the day regulators will always abstep behind the bankers. i think in this case where you have one of the bert risk managers and they had an issue. they recognized it and brought to it the street. they identified what they think the potential loss is. and at the end of the day, it is a small loss. they will tell have positive earnings and still maintain the regulatory capital ratios. this is a non-event. >> yeah. thank you, guy. >> tell that to some guys in congress. >> you can say that over and over again. they will always find reasons to legislate more. always will say see, this is proof we need to add more money to more regulation. >> kelly evans on the phone from view any. she has breaking news out of something. >> opec meet. >> opec. what's going on there? >> reporter: hi, guys, yeah, i'm at the grand hotel in vienna where we just had the oil minister for the meeting. the meeting that takes place thursday. first thing people wanted to know in light of an interview that went online earlier today

where he was quoted as saying he wants level to be raised for clarification. he said that it is not what i said. i said maybe. and maybe it will be lower. again, the news here to clarify as we have the saudi oil minister saying it is not necessarily the case he wants higher output. he did say maybe. he didn't say no. he said maybe. he also said maybe it will be lower. again, this comes at the close of eight months low. you can understand why there may be some angst about what higher level could do. >> in other words, maybe the market will turn around here after we get this clarification. kelly evans at the opec meet. >> reporter: thank you. >> thank you. see you later. >> ryan has this real-time flash. >> talking about oil stocks. intraday, exxonmobil, reversal in a ten-hour period in oil. take a look at exxon dropped off the map right around 20 minutes ago. tiny bit. i don't know if it is on kelly's

headlines or not. take a look at chevron. same story. throughout the day continuing to weaken and weaken in the oil stocks. two dow components getting thumped good now. >> markets heading lower. almost down 100 minutes on. 200-point drop now. >> about 40 minutes before the closing bell. dow is down 93 points. >> apple, even if you love their products, should you love the stock at these levels? we are talking numbers after apple's big developers conference today. seemingly. don't read too much. seemingly failed time press wall street. to impress wall street. >> huge scoop about the facebook trading laws. we are talking $350 million. the fallout of that continues. it's very important to understand

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no shortage of announcements from apple. the market is not impressed. our jon fortt giving us the lowdown from the conference in san francisco. >> lots of announcements today. maybe who had reasonable expectations probably had them exceeded, no, we didn't get a tv set, didn't get a new iphone. or a seven-inch ipad. nobody realistic -- did anyway. what we got was a number of tools for developers. just a number of new areas that apple opened up. mac, 3-d maps. google tried to preempt it.

what apple has done is integrate this into the map experience and do it in a way that's coming in the paul. google said without it have some things by the end of the year, adjusting google earth. a number of the features. facebook integration. key. also yelp integration. interesting you see apple taking a number of google's rivals and integrating them into the ios experience. also see turn by turn navigation. i heard that from a number of people. they want to see it. apple has done it on its own. it is not a disappointment from develope developers' perspective. >> i want to talk about that. we want to talk numbers now on apple. and the response to the devel developers conference today as it pertains to the company stock. on the technical side, carter, chief market technician at oppenheimer joins us.

walt walter joins us. gee, the -- market is not impressed because the stock is going lower. that may not the case. you see it the news. what do you make of what the chart is doing now? >> for the first time in quite some time apple seems healthy. by my work. standard one-year chart. if you draw the trend line, apple came down on the trend and 18% sell-off from high to low. we have come out of this wedge, if you will, to the upside. bigger sell-off than the market. market sold off. now starting to exhibit certain amount of relevant strength. impressive. longer-term picture, this has been a fantastic winter, but the lines are important as well. well-defined trend for several years. then it goes -- that's the problem. but this rest or pause is what sets it back up for healthy and presumptively the next advance. we like it. >> you think it could set new highs at some point? >> absolutely. 650 or thereabouts. >> did you hear anything that you liked? does it -- you got a neutral rating on this stock now.

anything you hear change that? >> first of all, 18% sell-off is exactly what we talked about when we downgraded the stock on april 9. which is the stock needed a breather. at the time a lot of people when looking at the charts thinking it would set a new high. also reminded me back last year when -- four of -- before the december quarter, i was hearing from people that the stock was deathly, wasn't going to recover. our view fundamentally was if the company sold 35 million phones, where do you think the stock would be then? sure enough the stock delivered 37 million. the stock went on a tear. i think fundamentally lot of times drives what happens here. stock you got -- got ahead of itself and gone into a june quarter where there could be an issue given they are pushing back on their upgrade policies as a result of all of the subsidies they are paying. that's why i think the stock is weakening. people are taking a look at what the risk rks to that business model. >> you are not going on move that neutral rating just yet. >> not going to do it right here. again, you look at the wwdc, another area of pipe. go back to the downgrade and one

of the things people are saying in april was the apple tv was coming in 2012. i think some analysts quietly pushed that estimate back to 2013. there was not one mention of an apple tv today. again, stock was getting hype order this of apple tv. people are missing the point. it is the iphone and ipad that are going to drive profits in the company. not an apple tv in 2012. >> good to see you. you are free to change your ratings any time on live television. that's not a problem there. >> i'll think about it. >> we want to hear your thoughts on this. join the conversation. do you think about this announce the today, would it be enough to convince you to buy apple's shares at these levels? tweet us your thoughts at cnbc closing bell. we will show your chances coming up. triple digits for the dow. dow off 101 points. nasdaq lower by 42 with about 33 minutes before the closing bell. it is a story our own maria bartiromo brought you here on cnbc. who should get the blame for

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it was friday maria broke the news ubs may have lost as much as $350 until facebook related losses. much more than had been discussed earlier. a bizarre story that ubs is blaming on nasdaq's technical glitches the day facebook hit the public market. here is a look back at the chain of events on that. >> we have breaking news now on facebook as we mentioned before the break. maria bartiromo is here with the story. >> thank you very much. cnbc learned that ubs has a big problem with facebook. the firm sitting on losses, sources tell me, as high as $350 million. some ten times more than the $30 million number that's currently being speculated in the market by others. the firm is preparing legal action against nasdaq as a result of these losses. the issue has to do with the failure to get confirmation and execution from that facebook

trade on day one and would. i'm hearing ubs wanted a million shares but when it did not receive confermations repeated the order multiple times and left with much more stock than 1 million shares. more news break being ubs and facebook that's been getting a lot of attention as well. great work, maria. >> thanks so much. we have learned ubs has major problem on its hands regarding facebook. what happened was the furm is sitting or was sitting on an enormous amount of stock. now has a -- trading losses of sources telling me as high as $350 million because of facebook debacle. >> is thpart of this human erro? who punches in the order ten times? why not put cantions in there? >> i agree with you. with the computer system today things happen instantaneously. you do it again and figure it didn't go lou. all of a sudden it went through

ten times. >> sitting on 40 million shares of face look right. isn't it funny that the stock price had gone up, we wouldn't have any of these conversations? >> but it didn't. yeah. >> all right. thanks, guys. >> if that was a trader at my shop hitting the button over and over again i would have fired him. >> you endeared yourself to them, i'm sure. is ubs just the beginning of the mess as it continues to unfold? >> should the nasdaq really be responsible for these losses? joining us now is josh brown of fusion analytics. aforesaid monkey comment. when you heard our piece, are you still stand big the monkey comments? >> i-stand by my money comments. well, between don't know if that's what caused the error. that's now what they are saying is that -- you hit enter and we are used to this instantaneous world where -- you don't see it but there is a lot of risk october the line if it is your job to get ahold of those

shares. maybe that drives to you do this. personally, i wouldn't ever do it. >> possible necessary place if a trade doesn't go through? >> that's the startling thing. if you are on e-trade in your living room then don't let you repeatedly enter the same order in. fail safe even at that level. you would think on a million share order, will's somebody stopping the chicken from just pecking away. >> i have a radical idea for you. how about this? pick up the phone. did my order go lou or not? >> pick up the phone. who are you going to get on the phone? >> what kind much relationship is that with ubs with whoever is excuting the trade if they -- i get the point technical glitch. but you don't have a confirmation. pick up the phone and say what's going on, guys? don't push the button again. >> that's -- i think that's the salient point. i spoke to over 100 people in the industry that were actively trading the stock that day. what every single one of us had in common was two things. late prints. 50 15 minutes later, you own it. unheard of. nasdaq exchange. then the second thing we will

have in common is incredulousness. they had 15 months to prepare. you say to yourself how could this possibly be the case? >> who is to blame here? if we are going to point a finger who are you pointing a finger at? >> i think you can point the fingers at both ubs and the nasdaq. obviously the nasdaq had an enormous amount of problems. ubs, to put in an order for what's being reported as million shares of a $40 stock, and end up taking $350 million losses, you know, some of the other guests pointed out it is hard to figure out exactly what ubs did wrong to cause such a massive loss with -- such a relatively minor issue. million shares, $350 million. >> they probably held the stock and then it is not an execution -- execution order anymore. if you go long and stay long important ten days that's how you get a $350 million loss. if anything, that could be entering into the equation as well. >> they held on hoping maybe it would turn --

>> how else do you get to that number on a million shares? >> they found -- with more of a million shares. initial orders for a million and when they -- >> kept hitting the button. >> bought 35 times, though? you know, at a certain point it is nasdaq's error, day one. maybe even day would. but after ten days if you are still in the stock and have a loss because it dropped to 27, how much longer can you continue to blame the exchange before you say wait a minute, why didn't we get out of this position? >> the deadline to sue nasdaq is june 22. if you are ubs, do you sue nasdaq? >> i think you can see a lot -- sue a lot more than ubs. i wouldn't be surprise. >> what's the downside? throw your hat in the ring. >> look at like online breckrage, fidelity, they are making customers hold in advance knowing that they have a legitimate claim. they are solving things on help lines and saying okay, we will undo that trade. it was in the journal today. you will see a lot of brokerages and lot of trading firms come out of the woodwork. this ain't over yet. >> june 20 i'm told is the

deadline for that. what kind of litigious activity do you anticipate out of this? >> i think anyone that -- ubs, i think will definitely be a good -- i think they are exactly right. someone is going to be making whole on these trades at the retail level. brokerages are going to have to pay those people back. they are not going to want to take the blame. they will want to blame it at nasdaq. nasdaq obviously made a lot of mistakes. they are an easy target. that's who will end up footing the bill. >> nasdaq offered up 40 million so far. do you think they will raise that? >> i think they could raise that. i don't think it will be too much more than 40 million. i think -- i think ubs is in a class by itself in terms of the size of their mistakes. i wouldn't be surprised if nasdaq pays back a lot of what the breckrages lost on the facebook trade. >> gentlemen, thanks for coming in. no monkeys in your shop? >> not for long. if there are, they don't last.

>> thank you, both. about 20 minutes to go or thereabouts. dow coming off the low, 9 points now. >> brian is still bullish on this market and calling for a big rally in the s&p by the end of the year. >> walmart facing a huge bribery scandal in mexico. why is the stock at a 12-year high? is it still a buy or is walmart about to come crashing back to earth? a look at that coming up. >> which stock is up the moist so far this year? bed bath and beyond? harley davidson? starbucks? the dividend pays off after the break. ♪ there'll be the usual presentations on research. and development. some new members of the team will be introduced. the chairman emeritus will distribute his usual wisdom. and you? wel chief .

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just before the break, we asked which stock is up the most so far this year. bed bath and beyond? harley davidson? starbucks? now the payoff. harley-davidson which has risen about 25% year to date. october. some clarification out opec meetings on whether or not they want to increase production or not. word was maybe. we have sharon epperson at the

nymex. >> looking forward to thursday meeting. today's action really was all about what happened in europe or what has not happened yet. still the great deal -- a great deal of uncertainty. pressure on the euro and causing the dollar to rally and commodities to fall. particularly oil prices and oil prices continue to take a beating here in electron wrik trading, falling below $82 a barrel. we are now poised to test last week's low. that was $81.21. from there, the bears say there is a clearget at $74.95 a barrel. that's what the bears there are saying that we could see oil prices fall to. particularly if we don't get any better resolution of what happen was greece with the elections over the weekend. and if we continue to see something negative come out of opec. back to you. >> sharon, thank you. the stock market is fading or has been in the final hour here. coming off if lows now. technology adding to the pressure. apple giving up earlier gains. bailout in spain had a short shelf life for investors.

it lasted at least a half hour. but have no fear. one of our next guests is still confident about his bullish year-end target for the s&p 500. >> let's get that call from the man himself, brian belsky. brian, you say 1425 by the end of the year for the s&p 500. that's more than 100 points from where we are now. greek elections be damned, you think we can get there, why? >> fundamental concept of the summit stocks is good. we are in one of the structural breaks now where fundamentals look better than prices and clearly, when the market was running up in the beginning of the year, investors didn't have to deal with any bad news. all of a sudden bad news and scary things start to happen and start to sell. for all intents and purposes, strategy of investors the last lee years has been the same. right? selling into the rallies and buy into the dips. until we get some sort of clarification, number one, from europe. election season come on it will be a noisy summer. we think we could get a very strong and surprising relief rally just before the election.

as the market tries anticipate a closure in this whole zone do you think the election is really crucial, too, right? >> i do. i think that over the next several months -- >> u.s. election. >> right. forget about the greek elections. i think ultimately as soon as we have some confirmation that obama will lose the white house, markets will rally substantially for the next several years. i will tell why you. lot of people out there are very nervous and on the sidelines, capital. why not spending? because they have no clue what taxes will be, what health costs will be. they are sitting on the sidelines waiting for confirmation. >> do you think they -- all of that will be clarified under mitt romney if he were to be elected? >> i do. >> he has the same congress to deal with. >> he does but he has a business background. america is a corporation. let's call it how it is. if you have a guy of mitt romney's stature running the country he will do a lot better than mr. obama. >> still has the same congress he has to deal with. >> he does. a very good point you bring up. >> clarity -- president obama

won? maybe he wouldn't like the outcome but we would have clarity about where it was going, wouldn't we? >> as was put the business of america is business. we are running a business we have to create revenues and cut costs. ultimately mr. obama is going to -- have to follow under that suit. he will have to become more conservative with the fiscal policy. forced upon him by the rating agencies with the potential threat of another downgrade. remember, borrowing costnot go up the first time. borrowing costs historically went up the second time. >> you have seen a pattern. i was going to say the first time they downgraded the u.s. debt. americans -- investors all over the world ate up u.s. debt like crazy. rauts dropped dramatically. >> bill talked about the congress that we have seen historically lame duck congress is getting a lot done because they don't have to worry about their jobs. they are getting it done. >> what will lead it higher? >> we have a lot of sea saw action because of what's happening in europe. view lot of people think italy will become the next spain. spain will become the next greece. great enthusiasm last night met

with sell-off today which shows people are very concerned with what is going on in europe. until te u, germany, steps up to the plate and says we have a resolution, we have a plan and i think you will see a lot of the seesaw action. utilities are a great place to be. rates -- people are looking for yield plays. there's no yields out there. they want yields. >> i think yield growth is more important than high yield in general because you want to find the companies with good cash flow to increase dividends. >> apple or facebook? >> we like facebook. >> you do? >> we do. >> why? >> probably the only ones. we have -- a nice stake of our investors capital in facebook. longer term facebook -- >> are you standing on a negative position now? >> yeah, a little bit. we are still confident. >> most people are. good to see you both. >> thanks. >> about 15 minutes before the

closing bell. >> billionaire's net worth has gone up, jim rodgers not exactly a big fan of the eu's bailout of the spanish banks over the weekend. we have his solution to the debt crisis. >> after the bell, sobering data on how the bottom line of american families has been impacted by the turbulent economy over the past few years. we believe the more you know, the better you trade. so we have ongoing webinars and interactive learning, plus, in-branch seminars at over 500 locations, where our dedicated support teams help you know more so your money can do more. [ rodger ] at scottrade, seven dollar trades are just the start. our teams have the information you want when you need it. it's another reason more investors are saying... [ all ] i'm with scottrade. to provide a better benefits package... oahhh! [ male announcer ] it made a big splash with the employees. [ duck yelling ]

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welcome back. dow down 115 points. we are seeing concerted selling going in right now. all the water cooler talk going into the weekend, coming out of the weekend, was the bailout of the spanish banks. one person not impressed was my old friend jim rogers, millionaire investor. >> it is nothing more than pushing the thing out into the future. it is making the situation worse. the solution to too much debt is not more debt. this is the most insane thing i have ever heard. lit make the collapse when it comes even worse. be careful. you should be not careful, you should be worried. >> what would you have done?

i mean, what 'twas right answer? >> bankrupt. >> went on to explain the classic situation of restructuring. you let them go bankrupt and smart money moves in and reconstitute it is banks and restructure and move on from there. >> i think it depends on the bank. if it is solvent or not solvent. if it is not solvent do what did you in the united states. cuts a deal so the assets end up in someplace. >> it all sounds good on paper. but let's face it, we don't live our lives on paper. and the -- events surrounding the demise of lehmans still ringing in everybody's ears and the ripple of effect of what that caused in 2008 i don't think could you get away with that. >> the problem is, you know, here in the u.s., fdic could do that whole process because we can still borrow a lot of money. we still have it, spain will struggle to do that. they have to come up with some european system or -- >> let's face it, any

politician, my politician, are they just going to stand back and let that happen? they would be seen as negligent and not doing their job. >> if you allow the banking sector to contract dramatically and credit which has already been happening in spain in dramatic fashion, we have seen the dow decline months after months after month. you get a full-on depression. we know from milton friedman that's what happened in the united states. let it deflate. let it deflate. the market whether clear at a certain price. the banking system needs to be pumped full of capital at the worst moments for the economy to survive. >> we know what happened over the weekend. the markets certainly not impressed. we are heading lower in a big way now. markets on the open this morning, the dow was up 96 points. after we saw rallies in asia overnight and in europe this morning. but it didn't last long here in the u.s. the dow falling almost immediately and now we are setting lows now. >> there is a phrase that people ought to learn. they shouldn't be frightened of

it, subordination. this is the idea people who invest in a lot of the banks in spain are very worried if europe starts to invest on top of them, if eventually they go bust, you are lower and lower. you are far less likely to get your money back the more the europeans invest. >> exactly. we are heading lower. we will come back with the closing countdown in just a moment. >> apple, big news today. software and laptop updates were not enough to impress apple invest wrors. what will it take to jump start this once red-hot stock? >> we want your thoughts on this. are they enough to convince you to buy shares of apple at these levels? tweet us your thoughts. people with a machine. what ? customers didn't like it. so why do banks do it ? hello ? hello ?!

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td ameritrade's empowering web-based trading platform. take control of your portfolio today. trade commission-free for 60 days, and we'll throw in up to $600 when you open an account. 3 1/2 left in the trading day. so much for a relief rally based on the bailout of the spanish banks over the weekend. let's see what's happened here today. spanish yields. i mean, it was on the open this morning when when you got what you thought you were going to get was a follow-through of the rally in asia overnight and europe the morning. we did for maybe 15 minutes.

then it changed. here is the yield on the spanish ten-year. climbing 20, almost 29 basis points. 6.5%. the euro stronger in the open this morning. then it starts to head lower. we are down to $1.2484. down 1.3%. the one we will watch the rest of the week will be greek ten-year yields. as we head towards the election on sunday and they are up to 28.7% for the week in the last week. down 4.25%, believe it or not. now back here, here is our markets today. will is the 96-point rally on the open this morning. now getting a serious sell-off. down 143 points at this point. i can imagine -- let's see what the ten-year yield here is doing. our own treasuries may also be going lower as they buy the treasuries to sell the stocks. show me the den-year yield if you can. all right. can you show me the ten-year yield? the graphics are closing.

okay. they probably are going. oil we know is down at the lows of the day. $81 range here. let me go over to peter costa. what's the market telling us now? why this rapid sell-off on the close here? >> i think -- we are falling under our own weight of, you know, inactivity. nothing going on. there is a $5 00 million share day we were so relieved there was a -- bailout of spanish banks over the weekend. i mean, that's one -- >> europeans were relieved. the asians were relieved. i don't think the americans actually took that much into it. took it on the opening. and i think what ended up happen singing that we had a really good week last week. still soft in the market. i you this you are seeing the softness now. >> telecom, utilities, very defensive sectors. were the strong leaders today in this market. those are the sectors you like now. >> no, between underwrite those sectors. >> for your -- >> no. because they are among the best

performers last year when everyone became very nervous. many investors began tune decks. right? guess what happened after the first quarter rally? everyone back into the defensive side. that's no way to invest. >> back to levels we began the year at at this point. it is like a do-over. >> exactly right. the problem with -- peter talked about the volume. there's no commitment to stocks. that's the big problem. everything that's going on in the u.s. markets driven by institutions. that's why you see such rapid and strong moves both up in the vix. not a lot of strategy. ball trading now. >> oil, going lower here. you know, as energy goes, so goes our stock market lately. right? if that is still going to go lower and opec meets this week and raise reduction possibly, that could hurt our stock market. couldn't it? >> i would think they are not going to raise production. i think it is interested in keeping to it