good yield. >> steve? >> tyson, a buyer. 14.5 stop. >> health care etf. still going. >> follow me on twitter. "power lunch" starts right now. the markets picking up after the dow opened more than 239 points lower. right now down about 128 points at 12,694. good afternoon, everybody. i'm tyler matheson. >> i'm sue herrera. bob, it strikes me it's an impressive recovery with the big headwinds. >> it was. we were down at the open. sue, a lot of pressure right at the open. unusually volume. a lot of talk of people in europe that needed to lighten up here, margin calls in europe. at any rate, heading in to the european close, the dollar came off of the highs and maybe some of that selling pressure over europe abated a bit.

slowly moving up here. regained 100. i just want to note, though, there are a number of big sectors entered correction territory. financials a little while ago but today energy and tech. down 10% off the highs. industrials interestingly not having that bad of a day. eaton with numbers better than expected. revenues disappointed and the guidance wasn't very good and not as bad as some people feared and companies with tough times in the industrial space trading to the upside. finally, a ban on short selling of spanish stock seems crazy stupid to me. they had a ban on short selling financial stocks august of last year to february of this year and you can see, sue, not prevented the spanish market from falling further. they need to think more clearly about this. hurting spanish stock trading and volumes back there.

>> i would agree with you. bertha, we have seen the same paring of the losses at the nasdaq or not? >> we have. last week we had mixed results of big names of microsoft, ibm and yet the stocks moved higher. a little less of a benign feeling to stocks today. rim among the best performers of the day an given up the gains on an investor fairfax financial upping its stake, nearly doubling it to 10%. now the biggest holder in research in motion. pete's coffee also moving higher. we have a number of little deals here on the nasdaq. pete's coffee taken private for a billion dollars by a german conglomerate. not by starbucks. off by 3% today. and really the big focus tomorrow is apple's profits. a lowdown in phone sales with the anticipation of an iphone 5

coming this fall. apple off .6%. a big drag with microsoft up 3% and a small deal in satellite imagery. geoeye taken over -- they were going to join in a different way, at any rate, the deal worth about half a billion dollars today, one of the few that's bucking the trend over here on the nasdaq. sue and tyler? >> bertha, thank you very much. now trader reaction to the market selloff and the rebound. we have tyler vernon and steven gilfoyle. steven, why do you think the market came back and is there any reason to believe that the comeback could be enduring? >> well, i'm really kind of impressed with the way the equity market and the price of gold absorbed the news this morning. one thing i did notice is the volume is low today and slow on friday. friday was a single x.

two down days with light volume and the volume was not there. with no conviction on the selloff side. we didn't see much volume on the upside either. i think we are up here against 1346, a point of resistance. past this, we could have a good afternoon. >> one, tyler, do agree? two, we have headwind, not just in terms of economic data but also in terms of earnings. many of which have seen lowered expectations on those earnings. >> well, i think short term, this is probably a buying opportunity. again, as he said, it's really light volume. great that the market has come back from the lows. there's i think the end of the day people still think that bernanke flood if things get worse so i think markets are not concerned about a big pullback and investors want to take opportunities to get in on the dips as we have seen in the last few weeks. >> gentlemen, thank you. tyler, we'll see you later. steven, thank you for joining us

today. we want to dig deeper. on friday, we'll get new growth numbers and by just about all accounts they will not be so good. that's the economic data. steve liesman working on that. but first, to the euro zone crisis and michelle caruso-cabrera. >> tyler, we saw the european stock markets sharply lower today. they also moved off the lows like the u.s. did. however, really deep selling, especially in greece today. and we've seen deep, deep selling in both spanish treasuries and also now italian treasuries, as well. seeing the yields rise very sharply and once again investors apparently abandoning the debt of those countries. two key reasons that a lot of folks are focusing in on. why would this be happening when a bank bailout for spain was approved just last week? this bailout was supposed to separate the sovereign risk, ie the country risk from the bank

risk. in other words, the money given to go to banks, wouldn't add to the spanish gdp to debt ratio but reading through all the paperwork, spain will still be on the hook for that money. so whether it's part of the debt, traders are well aware they could owe it additionally seeing more of the regions raising their hands saying we need help so that's going to add more to the federal debt of spain, as well. >> so, why are the banks hit so hard? because of the reason you described? >> the spanish banks are hit and the italian banks, as well. but spanish banks got a big bailout and questions now about just how much pain will be put on investors as a result. so if you read through this huge document that came out last friday, they start going through the details with the european commission to demand of bank investors in spain restructuring banks and this is where you have to understand the capital structure of a bank. if you are invested in the bank, do you own stock? do you own preferred shares?

do you own debt? do you own senior debt, secured debt or a depositor in a bank? this that paper they started to delineate out where they inflict the pain and higher than investors expected so they're holding maybe preferred debt and subordinated debt they didn't think would have to be touched or they wouldn't lose money on and now questions whether or not in fact they'll lose money on and there's a big debate in europe about whether or not senior debt which up until now has always been protected if in the case of bank liquidations it won't be protected anymore. that would be a big first or new step in this crisis. back to you. >> michelle, thank you very much. now the american economy and those gdp numbers out friday. steve liesman with us. steve, the numbers looking shaky and look like downgrades. >> feels like if you blink another tenth comes off the ether what happened over the weekend and what we

found is some of the biggest economic shops on wall street basically took down the number for this friday. th consensus you'll read is 1.4. we came up with 1.3 with a smaller set of nine wall street economists. and then here's the high, the low and the mid range. stanley sticking with the 0.7% number. morgan stanley at 1.7. the high on the street. rbs at 1.3 and that 1.3 number down two ticks and came down more. a lot of what's going on is concern of the fiscal cliff and at root, concerned about the consumer. tyler, it's really what spooked everybody. and then just looking on the third quarter what you see is that it doesn't seem to like it's picking up too much at all. 2.1 is the number. look at jpmorgan. over the weekend, shaved a half point off the third quarter forecast, the quarter we're in

right now. 2% to 1.5%. i'm wondering if joe didn't have time to take down the number, tyler. >> typically been a little higher than the street or at least he was for much of last year. do these numbers make it anymore mo likely that the fed will take action? >> absolutely. i think the weaker numbers suggests that the fed taking a form of action but the key is going to be the jobs report. i think bernanke wants to said it three or four times last week. sue, you will remember. he said that if the jobs numbers are bad, we will do more. effectively is what he said so that first week of august with the jobs report, that's why a lot of people thinking september's more likely time for action coming to actual quantitative easing rather than this meeting when people think they could make changes around the edges. >> steve, thank you very much. >> my pleasure. >> all right. as investors do react to more negative news of europe and all the other headwinds, what are you doing with your money? we'd like to know.

vote at finance.yahoo.com. all right. brian shactman joins us. >> bertha mentioned pete's coffee being taken private. hasn't affected the coffee space except for one name. caribou coffee. why, you say? it's a small cap with a very well-known brand and some people think it's a target if coffee continues to consolidate. up 4.25%. back to you. >> thank you very much. next up, the oil side of the story. new violence in the middle east force the market higher or a big drop in europe force it lower? a really bearish sign for sears. get it? >> oh dear. look at this. >> this bear wandered in to a pittsburgh area store over the weekend. obviously looking for some new chinos. >> they had a sale. >> animal control officers came and took it away. >> not surprisingly sears down

today, down 35% in a year. down 3% today alone. before the break, the materials sector alcoa at lows not seen since february of '05. cliffs natural at lows not seen since february of 2010. both down significantly today by 2% and 3.5 respectively. we're back in ten minutes. this summer put your family in an exceptionally engineered mercedes-benz now for an exceptional price during the summer event. but hurry, this offer ends july 31st. wanted to provide better employee benefits while balancing the company's bottom line, their very first word was... [ to the tune of "lullaby and good night" ] ♪ af-lac ♪ aflac [ male announcer ] find out more at... [ duck ] aflac!

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a terribly violent day in iraq today. coordinated bombings and shootings rocking the country

and killing at least 106 people, wounding hundreds others. the leader of al qaeda in iraq promised a new offense last week and this may be part of his making good on it as the holy month of ram dan begins and another day of unspeakable violence in syria, as well. forces loyal to president assad taking back parts of damascus today. there's word of executions and new fighting in major cities between assad's army and rebels trying to take criminal of that country. ty? sue, to oil now and more crude realities. oil prices up 12% over a month. violence in the middle east pushing them higher, of course. the push and pull. so which side is going to win out here? sharon epperson is with addison armstrong who thinks he may know the answer. >> that's right. as we are looking at oil prices today that have fallen as much as 4% in a session, we are

looking at why the demand picture for oil may actually went out here. addison, lowered the forecast for oil prices for wti by about 10% from your original forecast. why do you think oil prices are headed lower? >> well, i really look at the -- not the geopolitical but the global macro situation. you have slowdown in china. europe is obviously not going to be turning their situation there around any time soon. very negative for energy demand there and i think, you know, we could be talking about a recession in the u.s. come the fourth quarter, in the first quarter of next year so all those things add to that. robust supplies. a lot of non-opec output coming out from russia, u.s. and i think that, you know, the fundamentals are pointing downward. >> $93 the average you think for 2012. how low could oil prices go in the second half? >> well, if i'm at 93 and trading, you know, 89 right now,

you know, the market's got to go below for me to be right so i think you take out some of the iran premium, probably $5 lower and we will have to spend sometime around 85, between 80 and 85 to make my prediction come true. >> how big is an issue is the slownoun europe on what's happening in china, on the demand outlook in china? >> that's a good point. you have seen the data out of china of how their exports are slowing. well, that's all directly related to europe. as europe slows, so goes the engine for china's growth. >> consumers want to know what does this mean for me, prices at the pump. we talked about maybe prices going to $5 when folks thought we would see much higher oil prices. will we see $3? what do you think? >> i think $3 is going to be a stretch. obviously, i think the oil price will come down. that's goi to help lower the price of retail gasoline but at the same time we have very low

inventories here in the u.s. and demand's kind of flat. not really moving so i think overall $3 is going to be tough to get to. i think you could see a retail price pullback of $3.30. not much lower than that. >> very much. back to you. >> sharon, thank you very much. brian shactman now with a market flash. >> rbs less bullish on the aeronaugaer aeronaughtic. they think the sector could ease from here. aircraft orders have most likely peaked. both stocks down 2% plus. sue, back to you. >> thank you very much, brian. up next, the first court hearing for the man accused in friday's colorado shooting spree. also, the punishment of penn state university. the ncaa makes its ruling. new evidence the drought will hit you right in your wallet. that's straight ahead. meantime, tonight on cnbc, watch

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both stocks hit hard. back to you. >> brian, thank you very much. the man under arrest for that killing spree in a colorado movie theater on friday made the first court appearance today. james holmes with his bright red dyed orange hair showed little emotion in the ten-minute hearing. a judge telling holmes he will be formally charged with the killings next monday. 12 people killed, 58 wounded in that attack. the ncaa announcing penn state's punishment after a day after the officials removed the statue of former coach joe paterno. the ncaa fining the university $60 million in the wake of the jerry sandusky sex abuse scandal. all of the school's victories from 1998 to 2011 have been wiped off the record books. vacated. that means that paterno is no longer football's winningest coach. penn state also getting a four-year ban on postseason games and the loss of 20 scholarships a year in football

over the next 4 years. the punishment is said to be unprecedented in college sports. sue? ty, you have seen them. the pictures out of the midwest are shocking. some are calling it dust bowl 2012. this video comes to us from the corn fields of kansas. commodity prices up sharply. corn alone up 25% in two months. it's getting hit with a little profit taking today. the question, though, is, how does it impact the menu and your pocketbook? courtney reagan is live with the latest. >> reporter: it's going to be the restaurants, not the patrons, that really get hit the hardest from those rising commodity costs. operating 35 applebee's restaurants in the new york area and says that the diners so price sensitive that even raising prices a nickel causes them to speak up. as a result, he has never raised prices more than 2% on an annual basis. but fortunately the analyst says

most large casual dining franchises have long-term contracts even for the entire calendar year and the recent price surge isn't hurting too much but if prices are elevated or even uncertain, renegotiation could be painful for the next contract squeezing already very slim margins. the one exception is the fine dine restaurants. those type of establishments. those consumers just less price sensitive. they can pass along the price increases easier. tyler? >> thank you very much. sue? we have breaking news of washington. has that fiscal -- as that fiscal cliff approaches, john harwood is live in the nation's capital with news for us. hi, john. >> reporter: hi, sue. we had a fiscal cliff of sorts last summer when the congress and the executive branch with a standoff over the debt limit. the general accounting office has a study of what the cost of

the treasury saying that the delay in increasing the size of the debt limit cost the u.s. government $1.3 billion. it will cost more in the outyears. not a huge amount of money in the context of the federal budget, of course, but it's something to think about as we prepare for another round of brinksmanship with the fiscal cliff with the end of the year. we have got tax increases and budget cuts on the horizon, guys. >> thank you very much. ty? the monday metals market close is coming up. plus a lot more from here on a really rough day for the bulls. a little less rough than it began. right now, the dow industrials down 130 points. the transports off 63 at 5,008. the s&p down about 1%, 15 points and nasdaq down 1.5% at 2882. before the break, a look at stocks in the housing sector. we're coming right back. they're higher. ♪

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welcome back to power lunch. brian shactman here. consumer discretionary, one of the weakest sectors today.

look at best buy. continues to gather momentum here. now up almost 3%. at the highs of the day. but take a look at the one year. down significantly over the last year to the tune of 36.5%. sue, back to you. >> thank you. down to the nyse. bob pisani is down there. we have steadied out and much worse earlier in the day. what about later in the day? can we continue to improve? >> the hope is once europe closes is get rid of the selling pressure over there. the point of sue is correct. down 240 points. cut that in half. you can see as we went in to the european close towards 11:30 the market lifted. selling pressure came off as the people that had to sell u.s. stocks from europe kind of fulfilled their needs at that point. and now we have been moving sideways and actually we're very close to the highs for the day. let's move on. talk a little bit more of what's moving. energy, materials all are pretty

bad today. this was worse. almost down 3% with most of these sectors around 10:00 eastern time. so it's not -- i'm not trying to sugar coat it. it was much, much worse earlier in the day. if you think it's bad here, see the international etfs out there. there's the eem. the biggest international etf where you own a lot of different countries at the same time. bottom line is we're near the lows of the day and continuing to underperform versus the united states market. i mentioned the strils. eaton not quite as bad as people feared and home builders up today. goldman making positive comments about some of the home builders including kb home. sue, the question is now we have gone to normal volume now that we are approaching the close, heavy volume in the first half and looks like this market's kind of wants the move sideways for the rest of the day. back to you. >> thank you very much. to nymex and gold prices are

closing. sharon is there. hi. >> hi, tyler. gold prices down $5 or so. wech down much more than that and right now at the close looks like closing around $1,577 an ounce. look at europe, many gold traders and investors thought about gold as a safe haven and now say cash is king and where it seems -- a lot of safe haven money is going in this session. take a lock at the gld, though. that's an interesting chart from the beginning of may until now because barclays out with interesting analysis about the fact that it is gold exchange traded funds and the holdings there that have helped to keep the gold market, gold prices somewhat resilient here and the fact that the gold etfs is so relr resilient is because of prices above the $1,500 level. and that is something barclays says seeing prices, futures

prices dip below that mark, seeing a decline in the future price because a lot of folks exit their etf holdings. copper, another important metal to look at today because of the steep declines as bob mentioned. off of the lows in this session in this commodity, as well. euro zone pressure is impacting what this metal is seen as, an indicator of the global growth scenario. copper prices sharply lower on the day. back to you. >> thank you. now to nasdaq and bertha is following the big moves there. >> tech, as well, off of the lows of the day. we have come off since the close of the european markets and once again really a risk off market and tech is getting hit hard on that. the big mover this week is likely coming tomorrow after the closing bell. apple reporting then. the numbers are off the charts really. they're expected to post earnings of $10.36 a share on more than 37 billion in revenue and the big question once again is going to be apple's cash

hoard. veering over $100 billion again. will they issue another big dividend on the back of that? shares today are a drag along with microsoft. hewlett-packard over on the big board with a new low. research in motion higher as fairfax financial doubled the stake in the company. now the biggest shareholder position, however. it's really giving up the gains. dell hitting new 52-week lows along with win and several others. very interesting note on wynn. three murders in makow and a big care yeah for them of casinos and folks are back in vegas, sue, they're very cautious about gambling. the gambling revenues are not keeping up with the attendance revenues. a metaphor for this market at the moment. back to you. >> thank you. time for the bond market

report. j.j. mckenahan joining us. >> hi, sue. always a pleasure. >> i wanted to start with the fact that you had some interesting statistics. you say this crazy bond market, if you purchased a ten-year and 30-year you would be doing pretty darn well in contrast to what people thought. >> the 10-year up 5.5% on the year. and with the 30-year, you would be up about 8.5% on the year which really goes back to what all of your other reporters said here about this being kind of a crazy market. and, you know, and obviously, we are off a little bit of the highs of the day for the fixed income markets right now. but what's really interesting is how strong they've been. i mean, a lot of bond traders down here are really at a point of frustration with this morning we hit 153 on the 30-year. we did have some sellers there but what's happened every time is thinking we get to a level, 150, 151, we back off a little bit and run right through it. >> i think you can probably

thank europe and spain in particular for that. correct? >> no doubt about it. you know, when the spanish 10-year is going for 7.45, we see our ten-year going for 1.45. you're starting to see a real big difference in terms of risk premium. you are right. italy kind of spilled over. bob pisani talking about the stork market and we saw europe doing so poorly. greece down 7%. germany down 3%. the bond market seems so strong i think because there is a lot of fear out there with what else to do with your money. basically like here, don't give me any interest. hold it safe. >> exactly. which is more important this week to the bond market? is it europe or we have data out this week in the united states and we have earnings out this week here in the u.s. which of those two are more important? >> i think right now the european situation is so fluid. we see from what happened last night how important it really is to this market. you may get a temporary jump of

somebody with good earnings or we get a number that's good but as we know the analysts are so good on the numbers we tend not to push by too much. the european situation, the news that could come out of there could be such a surprise one way or the other that the potential for bigger moves is certainly out of the european situation. >> jimmie johnsalways a pleasur. good to see you. >> good to see you. >> ty. we have a preview of texas instruments and apple. but first mary thompson who's got a breakdown of mcdonald's second quarter numbers. >> hay there, ty. battling higher costs and weaker consumer both of which pressured the top and bottom line in the second quarter. the giant missing estimates by a nickel, $1.32 a share. currency impacted profits seven cents a share. on its first conference call as ceo, don thompson saying the change of management isn't a change in strategy. they're aiming to increase guest counts for the margins.

global same store sales rose and down from the first quarter. they were also positive in all regions though net income did fall in europe and mcdonald's receives 40% of the profits, also down in asia pacific. the company saying that the chinese consumers are reacting to a slower economy in that country and in europe, france and germany held up pretty well despite the concerns going on in the eurozone and felt in the southern economies in europe. along with higher labor costs, mcdonald's also seeing commodity costs pick up in the second half but a slower pace than the first half of the year and purchased commodities say grains before prices skyrocket after the drought, of course, here in the u.s. so that's helping them to control costs somewhat. the firm continues to be focused on providing value to what they say is an increasingly sensitive consumer. tyler, back to you. >> thanks very much.

jon fortt now with a tech preview. hi, jon. >> hey, tyler. let's start with texas instruments. specializes in ananlog chips and since texan gives updates, there shouldn't be a huge surprise here. nokia, especially bad quarters of nokia. can ding t.i. and apple wants 37.2 billion in sales. $10.36 eps as bertha said earlier. apple supposing iphone sales might come in light and ipad sales might be slowing. but i have talked to independent analysts thinking that the pros have it wrong. iphone sales down a bit from last quarter but only 10% they say and ipad sales, a lot of wall street folks think apple will sell 15 million units. some analysts itch talked to

think 20 million or more isn't out of the question. if that happens, apple could be a beat. some of the numbers i have seen that some of the analysts showed me compelling. apple tends to outperform the guidance by the same percentage just about every quarter and in this quarter, wall wl's estimates under the range of apple to come in. we'll see what happens. sue? >> jon, thank you very much. jon henmentioned a big week earnings. here's the big ones of dupont and caterpillar, ford, facebook, exxon and many, many more. we'll be busy here at cnbc. here's the earnings scoreboard. 68% came in above estimates. 12% have met estimates and 21% which is a bigumber is below estimates. and some of those are lowered estimates, as well. in today's yahoo! finance, as invest to recalls react to more negative news of europe, what are you doing with your money? those results after the break.

dell and hewlett-packard pulling down the sector. hp an 8-year low today. this is $100,000. we asked total strangers to watch it for us. thank you so much, i appreciate it, i'll be right back. they didn't take a dime. how much in fees does your bank take to watch your money ? if your bank takes more money than a stranger, you need an ally. ally bank. no nonsense. just people sense.

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legalzoom has an easy and affordable option. you get quality services on your terms, with total customer support, backed by a 100% satisfaction guarantee. so go to legalzoom.com today and see for yourself. we asked, as investors rea tokt more negative news from europe, what are you doing with your money? 20% are buying stocks. 5% are buying bonds or cds. and only 4% are buying commodities. 10% are selling stocks. 61% of you are holding tight. all right. now let's see what's ahead on "street signs." >> your cohost is holding tight on doughnuts. i can't wait. i might have to dip in to that. the pain in spain putting a knock on wall street today. stocks recovered some of the losses. two top money managers of where we go from here and if earnings

point to recession ahead. gm stock at a record low. ford at multi-year lows. could the hopium for cars be in the rear-view mirror and housing correction protection? should you view homes as a safe haven against stocks? we'll find out. all coming up on a much less sweet "street signs" than "power lunch" has. will you eat all of those? >> there are 54 beautiful little doughnuts. >> 53 in a few second. >> what better to go with a doughnut than coffee? right? pete eels coffee and tea going private for nearly $1 billion. for $73.50 per share, a 29% premium to pete's closing stock price on friday. the stock as you can see is soaring in today's trading session. here's a look at how other coffee stocks are trading right now. starbucks is off 3%. ty? >> and all this talk of food,

tonight on an all food episode of "how i made my millions," astonished in the years how many fortunes are built from food and beverage. and tonight, you're going to meet two guys from seattle, brothers, who turned the highbrow coffee shop world out in that rare if ied part of the country on the head introduced a low brow treat but man are they good doughnuts. >> whether it's their music or construction, brothers mark and michael share a passion for nostalgia and kitsche. they remodeled the coffee shops where they worked. >> it resonates. they come back in to the stores and it is like a little trip down memory lane. >> they were looking to open their own coffeeshop. they thought the humble doughnut done right could set them apart in the seattle coffee shop

scene. everyone was talking about coffee like fine wine and found classic doughnut making equipment and one big problem. >> we don't know how to make them. sometimes tough take the happ happenstance and the sort of thing that is are thrown at you in life and make the best of them. >> they really started from zero. they figured out how to make doughnuts and a $30 million a year business for them. starbucks was one of the customers. not anymore. >> they changed that relationship. they severed that relationship. why was that? >> they sort of couldn't keep up with demand. demand was so great and now off on their own. they, of course, won't sell coffee to starbucks. they control that. they will have their own franchisees now. and i've got 54 of these. they're heavy, sue. >> 55? i know brian sullivan had one. >> 53 i guess. >> people in the newsroom. >> anyhow, the full story of top pot doughnuts and food stories

on a brand new "how i made my millions" tonight here on cnbc. we tasted. it was lobster macaroni and cheese and you will learn about that tonight, as well. >> you were telling me about that. >> best thing i have ever had. there was no butter at all. >> oh no. or cream. >> no cream or cheese. coming up, drilling down on the markets. how should you play this volatile trading day? >> indeed we are. first, consumer discretionary among the sectors hit hard today. game stop at a seven-year low and wynn resorts down better than %. the dow, though, holding steady. cut the losses in half. we are back in a couple of minutes with doughnuts. [ male announcer ] at scottrade,

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all right. one of the market standouts of tn upside is general electric up just under 1% on the trading session. last week the company came in with better than expected earnings. trading at 20.06 and checked the volume, heavy volume, as well today. now to brian shactman with a market flash. >> decker's outdoor. downgraded to underperform. says reducing the estimates and

not involved in deck ahead of thursday's q2 report. it expects some forecasting guidance to be cut. the stock down 6%. back to you. >> thank you. triple-digit point swings for the dow jones industrial average. what can we expect? art cashin at ubs and tyler vernon, chief investment officer at builtmore join us. art, are you impressed by the market's ability to turn it around and is that sustainable in to the close? >> well, we can only hope. they improved somewhat. but so did things in europe. it was ironic that the market that wound up getting hit the least in europe was spain. but greece was down the equivalent of 900 points in the dow so damage was done. i want to see if they can bounce from here. the volume's not great. a run rate of maybe 750 to 800,

830, something like that. >> listen to what you just said. that's a fascinating way to put it, art. 900 points. the equivalent. did you say greece today? >> absolutely correct. >> 900 points. your pain here going down 120. think about their pain over there. tyler, you said earlier that you actually do believe that this is a serious buying opportunity. it takes some courage to do, of course. courage is what is rewarded when you do it. we're on the eighth straight monday in a row where the dow looks to close lower. maybe we should take mondays off. >> again, seeing the european news; we have seen it, gets behind us and gets behind us. i think long term we're concerned about the uncertainty that is we continue to talk about. short term we think it's a buying opportunity. we think option strategies, et cetera. things that the market is giving us that investors need to jump on and again with this light volume today, i'm not too concerned, especially with some

positive earnings coming out with potential more medicine of bernanke. you know, i think the rest of the week could look a lot more positive. >> art, more positive medicine of bernanke, do you think it's coming and when's the most important data point this week to swing mr. ber bank one way or another? >> some people are beginning to think that bernanke may do the chief justice roberts imitation and roberts decided to uphold the law but to put real handcuffs on it and the thought is maybe bernanke has decided to save the economy by not interfering in the election by maybe holding off until september for qe3. so he can't get accused of changing the figure that is will show up before november. >> very interesting. i think that sort of agrees, art, with what steve liesman said. wait until september. tyler, back to you. on a day -- you say up on a buy.

what would you be buying here and doing specifically? >> well, i think oil services. they look attractive. trading at a much bigger discount to a lot of more defensive areas we have seen. the staples, telecom, that kind of area and tech continues to be attractive. these are long term themes that we like. again, continued demand from countries, you know, throughout the world for oil. as well as technology. again, i think unemployment continues to stay low as companies bring on more and more technology to improve the productivity, et cetera. i think these are long term stories we like and, you know, specifically if we can find dividend payers in the areas, drillers within the oil services we like, as well. >> does that, tyler, act as an edge to a certain extent? you are paid while you wait because the volatility in this market is increasing in the last couple of weeks. if you dare step in to it. >> look at a company like sdrl.

it's an 8.5% dividend. we think that, you know, while oil is out there, it's harder and harder to find. and, you know, these companies have to go, you know, to harsher environments, deeper environments so the earnings are there and you can find companies with 5%, 6%, 7% dividends. not a lot of them. there's value traps out there and if you can pick up these companies, and if you can sell any kind of covered call strategy, especially in a day-to-day where volatility is high, you do a dividend of 5%, 6%, 7% to 7%, 8% with the strategies and if you're smart about it, you can really juice up the returns in this kind of market. >> art, would you expand on what you said a moment ago about the possibility that bernanke would wait until september to act? one hand, i get your thesis there and that is that whatever improvement a qe might bring to the real economy wouldn't show up until after the election.

but, if you do get that, you get the probably get the markets moving up right before the election, right after the conventions and his action, i mean, he's been a politically sort of radioactive fed chief here for a while. it might draw political attention to him that he might not like. >> well, i think that may be one of the reasons he could be thinking about this is because you've heard basically from the republicans about let's not get too active here. the election's coming up. try not to influence it. if he knows the economy needs help and the job market needs help, if he jumped in right now in august, that might be early enough so that you would begin to see the figures just before people went in to the ballot box to change. but if they wait until september, you know, it's october and we're voting in early november, so the economy could still be saved but it would be less of an influence on

the election. >> art, thanks very much. great to see you. >> i thank you. enjoy your doughnuts. >> if i was down there, art, i would have shared them with you. >> we would have had so many. tyler, see you later, thank you. >> thank you. >> meantime to brian shactman. >> telecom in terms of sector and the s&p large caps could go positive at any second and at&t continues to gain momentum here. of course, they report tomorrow before the opening. one of the few stocks actually leading in to earnings estimates have gone up in the last month or so. back to you. >> all right. a quick programming note. please don't miss larry kudlow's interview with mitt romney tonight beginning at 7:00 p.m. eastern time. and it of course is right here on cnbc. up next, should you buy a stock with a rookie ceo? herb looks at a bunch of recent examples including mcdonald's which is having as you know a tough day today. ty? but first, consumer staples

getting hit. kellogg, leading the way down trading at lows not seen since july 2010 and tyson foods at lows not seen since november of that year. before the break, let's take a look at the bond market. a record low in the 30-year yield today and right now the 10-year yielding 1.436%. we're back in a minute. tdd# 1-800-345-2550 i'm constantly working my screens.

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let's take a look at the dow stocks that have turned around. we opened down sharply lower on the dow jones industrial average and at one point all 30 dow stocks lower. cat up, biggest mover percentagewise to the upside in the dow industrial average. the dow down 128. s&p is down 14 points. nasdaq is down about 1.3% or 39 points and the russell down just 10. >> tyler vernon, this is a dramatic turnaround. is it significant? does it mean we've hit a technical bottom or another kind of bottom? >> well, i'd say at least for today and maybe tomorrow investors can take the focus maybe away from europe for at least the short term. we can start focusing on what's going on here