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and get 6 months commission-free trades. tdd#: 1-800-345-2550 call 1-877-994-7694 tdd#: 1-800-345-2550 and a trading specialist tdd#: 1-800-345-2550 will help you get started today. there's a look at your markets. the dow industrials down 67 now. but you want to focus here. i'm going to do something magical. i'm going to predict tomorrow's headline today. it takes a great deal of prognostication, but i predict italy will be on the front page of cnbc.com. in the meantime, oscar swag back downsized. it was valued at $47,000. which is ten grand less than last year's. back in 2010 it was a whopping $39,000. a free vampire facelift. by the way, it is taxable. >> thanks for watching "street signs," everybody.

>> i'm hosting "fast money" but first you've got "the closing bell." stay tuned. >> as promised it is the closing bell. i'm bill griffin at the stock exchange where the rally towards all time highs is on hold. >> at least temporarily. i'm sue herrera. our colleague maria bartiromo will be back tomorrow. here's what's on tap for today's "closing bell." the dow for a time was within 100 points of the all-time high. then it went sideways. we have realtime analysis on what happened and was. >> another market worry is the fed flinching on how and when it will stop priming the monetary pump? our steve leisman with a report you cannot afford to miss. this will be market moving. >> especially this week with the fed. all right. later, forget gambling with your money. if you've got to go to vegas are you now gambling perhaps with

your life? there's been a string of violent crime on that iconic strip and it's taking its toll as some are worried about tourism hits to vegas. >> not a good time for that to be happening. we kick things off with this seesaw day for the markets. let's get you caught up with the dow. down 62 points. it was at the high of the day up 81. at the low down 107. and the volatility index has reared its ugly head. fear is coming back to the market today. the nasdaq at this hour is down 11 points, about 1/3 of a percent. and the s&p index is down at 1,506. >> the dow was within the all-time high. but a few of the curve balls hit. we still have an hour to go here. >> ye of little faith. in today's "closing bell"

exchange, let's talk about those things. we've got jason needles, dan greenhouse back with us, peter jakini, and rick santelli there in chicago. pet peter, you say this is an important day technically. why? >> yes, i do. the strength in the morning has been met by the reversal. if we have an outside day into what i perceive as an important resistant level, that could be a bearish setup here. >> an outside day. we went higher than we did on friday. and if question close lower than we did on friday, you say that could be a signal that maybe the market's starting to go. >> dan greenhouse weigh in on this. >> we saw volatility off the low as well. >> exactly. >> you want to tap into that if you would dan and see whether or not volatility is factoring into your market forecast or not.

[ no audio ] >> there we go. >> start over, dan. we didn't hear you. >> we didn't hear the first part. >> was it yes or no? >> the answers i'm staying away from that peter laid out. what i would say is something we've been watching short-term is something bob pisani has been talked about how far nomly the s&p is from its average. when it's 7% from the 200 day moving average over the last three years or sow, that's what we're seeing today. >> gene needles, do you want to invest here? do you buy on the dips? you've had both opportunities today. >> yes. i'm a buy on the dips person. first of all, we're long-term investors. we oversee one of the largest corporate pension plans in the u.s. as well as the mutual fund complex. that's all summarized with $12 billion in assets. i can tell you that they're the

most optimistic we've seen them. >> whether or not they count longer tell. when you see the s&p hold the 1,500 mark. that attracts investors for a longer term. >> it does. but that's not where we're really seeing the excitement from the professional investors. we're seeing that in the fundamentals of the market. they believe that you're well compensated for taking equity risk at this point in time. the earning yielding with the dividend yield, the payout yield on the s&p 500 is at or near 25-year highs. and if it were my money and it is, at least some of it, i'm betting on equities. >> all right. rick santelli, tell us about your view of the market action today. especially as we watch these italian elections which we will get to. michelle caruso-cabrera will join us with the latest there. but a strong dollar and the

10-year yield down sharply in terms of getting out of its trading rage. what's going on? >> absolutely. it's all the technicians are talking about. we're in the high 180s right now. i saw 186 briefly. let's put it this way. in the last 22 trading sessions on a closing yield basis we've been closing between 195 and 202. we have now broken through the seven-basis point closing range to the downside. whether you look at the dollar/yen, or dollar index, we have been mostly the beneficiaries even though the yen has benefitted a little today as well. and one issue that's big down here is we've now been able to isolate what impact the eurozone is having on our interest rates. the funding issues that have corrected since july, maybe we're more responsible for the year-end ramp up in rates because now we've isolated and see yields going down.

one other thing. commodities. lumber today, five days down. it's one of the biggest five-day reversals in lumber in a year and a half. what does that say about housing or what doesn't it say? >> lumber and copper are two indicators we've been watching closely. >> dan greenhaus, what's the best here? as we approach these benchmark numbers, one is they'll retrace from there. and others say we're going to have a trending market from this point. what do you think? >> i don't think 1500 matters and i don't think the high matters either technically or for any other reason other than it's a psychological level. we've had a good rally here. yes we know that equities are not necessary aly attractive. and our view has been if you look over the last three years or so for equities, we're at a point that suggests give or take some lateral trading in the stock market especially into the month of march that's going to have the sequester on a

temporary basis. >> let's talk about the "s" word for a moment. presumably they would be given in earnest. but nobody is doing negotiating right now. speaker boehner holds a conference on the sequestration issue at 4:00. what do you want to hear from the speaker in that, dan? >> there's nothing to it. the sequester is going to go into place. the question is how quickly is it replaced? the first point would be the budget debate on march 27th. but we might have to go another month or two into that to see resolution. there's 0% chance that the sequester is avoided before friday. >> peter, do you agree with that? and what would be the impact on the market from your work? >> i definitely agree with that. the sequester goes in on friday. then on the 27th we have the end of the continuing resolution followed shortly thereafter on april 15th by the need to have a

new budget in place. so we really have three dates going into the middle of april which i think could spark a bit of volatility here in the market. and unlike the fiscal cliff, i think these are sort of more real events. the fiscal cliff was avoided handily at the end of the year frankly because i think both democrats and republicans believe that the sequester continuing resolution and the budget talks on april 15th would serve as a lever for either side. and neither one would be perceived as sending the u.s. into default. i do think the three dates that are upcoming are very important to the markets and will create some volatility here. >> gentlemen, thank you all for joining us here. the market has been coming back. the dow was down 107. now down 64 points towards the close. >> maybe a built less pressure on the market right now. let's find out what stocks are driving this downside. josh lipton has the latest. >> a rundown of your leaders and laggers. the day started out positive but

then headlines about italy and berlusconi weighing on this market. let's start with the dow where mcdonald's, walmart, and verizon are on the lean. ibm, one of the powerhouses behind the dow's moves since reaching the all time high in 2007. nod today. big blue edging into the red. when benefitted as a rivalry called its only drug staples services also gaining today. your laggards. chesapeake energy. which was below analysts' expectations. chesapeake, the worst performer in the s&p right now. other notable laggards, fs networks and morgan stanley. >> thank you. we're heading towards the close here. 50 minutes left in the trading session. sue says we're not going to finish higher today. >> no, i said no record high. there you go. >> but we are well off the lows

right now. the dow was down 107. now down 67 points. >> maybe we will finish higher. you never know. right now we have a bit of a reversal. is this the beginning of e the long awaited pullback, will the market end up higher? we'll talk about that when we come back. >> hewlett-packard snubbing microsoft for google. it's microsoft versus google coming up. then we focus on hacking. is it a bigger threat than we now know? companies could be getting hacked more than they report. eamon javers talks us live to a security conference led by the firm rsa. we'll talk to the executive chairman in a minute. [ male announcer ] i've seen incredible things.

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now, today's market turnaround would not have been a surprise to you if you had been listening to our michelle caruso-cabrera. something she's told me often. she's in rome tonight which of course is ground zero for today's selloff. michelle, what is going on with this squeaker of an election? >> yeah.

squeaker is right. the u.s. markets were rallying today. then the results from the italian election were trickling in. pulled the usa market off their highs. then within the last hour italian state television made some announcements which proved what everyone feared. that the election results will be inconclusive. this country may have to vote again in the next couple of weeks. that means we'll see the euro get crushed. it started to fall sharply. additionally investors started to push u.s. interest rates lower seeking safety. this wasn't supposed to happen. what was supposed to happen was a guy named luigi basani was to win. and berlusconi who was supposed to come into second, he came in tied. and beppo was to come in third. he didn't. he came in really close. he surged dramatically.

finally mario monti, the current president did far worse than anyone expected. bottom line, no one's got enough power to really control anything. silvio berlusconi's comeback is very impressive. despite his scandals, wiretapping, et cetera, he's done very well. look what happened when he voted yesterday in milan. he walks into the polling station and almost immediately three different women rip off their tops and on their bare backs and their bare breasts are painted bas to silvio. what they're saying is bas to berlusconi. enough of berlusconi. as you can see, they were grabbed by the police, dragged from the polling station out into the snow. it was a high level of drama. a lot of moments of tension. but that speaks to the nature of berlusconi and what has been on almost circuslike atmosphere for

this election. bottom line, we may have to go for another round of voting here. >> oi. what a couple of days there. let's bring in cnbc contributor michael farr to talk more about this. michael farr, why should we as investors in the united states care about what's going on with the italian election right now? [ speaking italian ] >> yeah, yeah. >> i'm trying to get in the mood for the elections again. we need to care because luigi basani promised fiscal and economic responsibility. if somehow we begin to take a drift closer to greece where they don't play well and they don't uphold their end of the bargain, then we have a bigger european problem which turns

into a big problem for u.s. markets. >> peter schiff, weigh in. how do you think this is going to play out in a market perspective? >> i think b the markets were due for a selloff anyways. i think the markets had rallied on i think the false belief that the crisis was behind us. and i've always said that the larger crisis looms in our future. so this is maybe a little bit of a wakeup call. but europe has a debt crisis. it's going to turn into a currency crisis if they go down the route of stimulus. they need real austerity in europe. they need to cut government spending dramatically. you know when that happens people don't like it. people get used to getting free stuff from government. we're getting a lot of free stuff from government here. i think what we have to do is learn from europe. i think we should even pay more attention to what's going on in the uk. i think what they're about to experience is going to be closer to what's happening here. they've got a real crisis brewing in the uk.

>> i think the fact that guerillo did so well as a comedian. we have to suspect that italian politics is maybe the highest form of entertainment, but they have a problem. they need responsible people, as do we, to address these problems and get something done. >> michelle, i realize we have a long audio delay, but i must ask you what the feeling is in italy on these results. i mean, clearly a technocrat who was an agent of change like mario monti who came in to clean up the town and has done a good job to this point. but it cost him a lot of votes, clearly, in this whole thing. so is basani seen as much of an agent of change? what's going on here? >> no, basani was seen as stability. maybe not a complete agent of change, not as much as somebody who is more free market. but certainly somebody who would

be stable and would definitely be pro-reform. the other thing you've got to keep in mind is mario monti is admired outside of italy far more than he is admired inside of italy. here in italy he's the guy who told people, you know what? you're going to work longer to get your pension. you're going to contribute more and that's going to be less than you expected. you're going to be working to 68 instead of 60. and your taxes are going up as well. so he's not very well liked here. they don't like austerity. >> he's enduring everything our politicians fear they may have to endure. >> but it also -- >> it's a lot more popular. you're a lot more popular when you spike the punch bowl rather than taking it away. but unfortunately that's what needs to be done. and politicians have to be willing to do it despite what it means for the polls. because i think the crisis that we're going to get if we indulge the populous and continue to spoon feed government stimulus, it's going to be a much, much bigger crisis and more pain for everybody. >> to michelle's point, michael

farr, mario monti was well respected outside of the united states and worked with officials relatively well. that might not be the case with whoever wins this election. how does that impact europe's ability and italy's ability to get things done? to push things through? to try and recover perhaps with the cooperation of the united states or advice from the united states? >> and that's such an important question. you not only talk about how popular or effective he is within the country, but we find out that monti was very effective outside of the country. and how europe and the u.s. and asia per seceive the italian economy and how serious they are to sticking to a budget and taking debt seriously is really important to their credit rating. after this four-way election turned into this kind of chaotic result here today, we saw the italian bond drop. those yields started higher.

markets are answering that question for us. it's really important. >> and in fact, as we sit here, gentlemen and sue and michelle, they're going back to the lows of the day. the dow was down 107. now we're down 106.5 points. there are some traders here at the big board who have been saying to us italy's not that big a deal for these markets. and you called this an excuse for the markets to see a selloff. what are you going to do here? >> they should sell off. the markets rallied too much. they need a reason to sell off. they have to grab something. but italy is a big deal in the moral hazard that is created if italy doesn't do the right thing and shrink government spending. they can't try to prop up italy in the way they've been propping up -- >> i'm looking for a trading strategy. i'm looking for a trading strategy. let's make this meaningful to investors and traders. >> look at gold if you want to trade. gold's the only thing making sense today. it's up about $13, $14.

but it should be up more. i think the gold selloff was way overdone. buying golds is it. i mentioned it earlier. we should look at the uk. they got a downgrade on friday from moody's. i'm guessing moody's isn't afraid of being sued by the british government. their inflation is accelerating. it's going to get worse. and soon they're going to be stuck between a rock and a hard place. they're going to have to start tightening over there. that's a look into the future. and that's a problem. >> i got to go at this point. i know you want to say something else, but we're ut of time at this point. save it for larry kudlow's show tomorrow night. >> there you go. >> see you later. michelle, thank you. and we are listening to you, i promise. >> indeed, we are. we have about 35 minutes before the bell. right now the dow is down better than 100 points. the s&p's also in the negative today. the s&p testing its low. >> we'll see.

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hewlett-packard's touch pad tablet? >> the what? >> exactly. probably not because the company killed it after only a few weeks. but now apparently hp getting back into tablet wars. josh lipton has the details. >> hp looking for a tablet comeback. hewlett-packard talk about a tablet operated by the android system. google search, gmail, youtube. it will be available in the u.s. in april with a starting price of 169 bucks. analysts tell me the following. this is going to be tough for hp. samsung and apple are running the ball well. and people will be skeptical about their real commitment here. still analysts say hp boasts formidable distribution and looks stable. so they say maybe this time hp has a better chance of success in the tablet market. the stock market right now little change in today's session. bill, back to you. >> thanks very much.

so hp is picking google over microsoft. when it comes to your portfolio, which should you choose? let's talk numbers. on the technical side it's carter worth with oppenheimer. on the other side steve cortez. discuss, please. >> sure. we don't like either of these. one case it's one being so darn good and the other so darn bad. if you look at these two stocks compared to the sector in which they're part of, of course google is literally tripling the performance while microsoft is virtually unchanged. the individual charts have their problems. one being extended too much. the other being sick. looks at though it's going to fall out the bottom. let someone else buy both of these. >> okay. steve? >> carter, i agree with you on

google it is extended technically. i wouldn't be a pier here. i do think microsoft, though, is interesting here. it's been a boring stock. but i think in a world of danger right now, boring is beautiful. and fundamentally mike so ro soft offers several things. a significant dividend. it has a 3.3% dividend yield. the 10-year treasury yield today is well below 2%. i think that juicy dividend is worth something. if anything, it's going to increase from microsoft. looking to the future microsoft i think is a serious upcoming player in mobile. it's not been a serious competitor there but i think the windows phone is about to overtake blackberry. >> steve as you heard a helpful analyst today suggested that maybe microsoft should split in two. a software division and a device division. would that help? >> i think it probably would. even combined i think it still makes sense.

microsoft spends almost $10 billion a year in research and development. i do believe that we're still going to see innovation coming out of redmond. if you look at the projects and they're secretive, but some of the potential projects. this star trek system that will be used in gaming and television, i think there's going to be some significant innovations out of this company as well. >> carter, last word. >> that's a reason it's trading. for now it's just a big slow-moving thing that doesn't have a lot of prospects. >> there you are. thanks, guys. >> thanks, guys. >> see you later. all right. we were up 120 points on friday. we've given it all back. the dow is down 125. we have less than a half an hour to go before the closing bell. >> so sue -- >> yes bill? >> did you happen to see what

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do with market right now? early on it didn't seem like they were worried. but right now we're down 122 points. we've given back all of friday's gains. by most account, today's leg down was not on spending cut fears. more about the italian elections.

here's our own maria bartiromo on sunday's "meet the press" with what she's been hearing. >> from an economic standpoint, $85 billion is not really going to do much in terms of impact. i think wall street is seeing this as scare tactics. if the market really believed the economy was going to be paralyzed on march 1st, we would not be trading near record highs. that's exactly where we are right now. >> all right. joe greco of meridian says mari ya's point is right on. that's not happening today at least. and our own jeff cox isn't quite as sure. he says the major pullback would be closer than other investors think. joe greco, i'm starting with you. we have the s&p below the 1500 mark and we've given back most if not all of what we gained friday. why do you think the market has this factored in? >> tough to make a bullish commentary when the dow is closing at the lows here. u i will echo and agree with

maria. like at home i have to agree with my wife maria. if the market really thought the sequestration alone was enough of a pin to pop where we are, then we would be off dramatically. but we live in a very condensed trading market. so up 10, 12 in the s&p or down is pretty easy to digest quickly. i want to make two points though. what i think here and what we're seeing and what we'll see in the weekend is two things. m you've pushed us and here we are. now it's up to you guys. speaker boehner will likely push the blame back across the table to the president and to the left. and that's pretty much how they operate into year end. which is why we're here now. the second is constituencies. a lot of yawns, a lot of government workers and teachers kbaktsed by this. promised a lot of things to

those major groups. he's going to have a little egg on z his face if he has to cut them back a bit. >> jeff cox, has the market been lulled into a sense of security because of how the fiscal cliff was resolved to some degree albeit a little bit later, but maybe the market has been thinking well they'll figure it out before march 1st. or maybe it won't be quite at draconian as has been laid out. >> i think you hit the nail on the head there. the market does not think it's going to happen. now, the people i talk to in the markets, i think this is a battle less bear versus bull than cassandra versus pollyanna. i look at this in a three prong tri tent. policies in washington. it's fed policy we'll hear more later? the week. and europe is setting the market lower today. i think any of these things just showing how susceptible we are to headline risk.

headline risk the big thing. i think if we do get past the 11th hour and go into sequestration, the market will react. >> yeah. let me go back to your premise there. you think the markets to this point have felt that they'll resolve the sequestration issue? but nobody's talking. and in fact, you know, it appears they're both sitting on their hands. both sides sitting on their hands waiting for the other one to move here. and maybe they're both calling plufs. >> i think the pollyannas have been winning for awhile because i think we're in this crisis fatigue stage in the markts. we're just tired of worrying. so we're pushing things off, putting them on the back burner and not confronting reality. very fragile economy now. i happen to think sequester is not such a terrible thing. i think the market's going to react substantially. >> so joe, weigh in and react to -- >> yeah, if i could just throw in there and believe me, i've been a proponent. you can go back a few weeks buying cheap protection down here with the vix being so low.

so i'm not exactly completely expecting that this market just continues to rise. at the end of the day, i think this deep pullback is not going to happen. the magnitude of the sequestration really doesn't -- is not that impactful. >> joe, my friend, are you proving me point? wait a minute. greco, are you proving my point the market is too complacent? i'll divulge. we had a conversation a little while ago and you equated -- >> take the script from late december. it's almost the same. that's why we're here. this was the cliff pushed off until now. >> isn't it different this time. >> here's the thing. it's different this time because if that happens and you furlough workers and increase the unemployment rate, the conversation we had last week or the language we heard from the fed last week is maybe we need to bury the pace of purchases. right? if the unemployment rate starts increasing, that rate will be

aggressive. not a deceleration -- >> i think it would be great if we could have a grownup conversation about fed policy. i think this market has not wanted to have. and when it does have it, it's going to be a sobering experience. >> but until that happens, the fed's bought us up thus far and will again if that's likely to happen. >> one more quick point. 41% increase in relative valuation over the last week. >> since last tuesday. >> and a big move today. >> fear is back in some ways. thank you, guys. see you later. yes, fear does seem to be coming back here. the volatility index is up sharply in the last week here. and the markets heading lower now. down 114 points on the dow industrial average. could earnings from the likes of home depot help get the market back on its march towards a new all time high? we'll have a preview on that and how some say you should trade the stock ahead of the earning report. >> also is the fed starts to

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with xerox, you're ready for real business. all right. the tech sector is also suffering losses today. the nasdaq's off about 28 points

or so. seema mody has the latest. >> take a look at blackberry. down about 5% on the week. but up today after reports indicate that blackberry 10 is selling faster than expected. another winner that we're watching although it is down just right now, another winner watching on the nasdaq, barnes & noble. news the chairman may be looking at buying out the consumer bookstore vertical. which could lead to splitting. that stock is up on the day roughly 12%. recalled its anemia drug as a result of hypersensitivity reactions. this is considered good news for amgen which has a similar drug on the market and thus the reason the stock is moving higher today. an analyst telling me he expected amgen to regain 100% of the anemia patients. back to you.

>> thank you very much, seema. who will win the bet? bill or sue? will we end in the positive territory today? >> that's not happening. >> you never know. we've got about 15 minutes before the closing bell. the dough is down 130 points. that's a new low for the trading session. >> one of the hallmarks this year has been a buy on the dips market. despite today's pullback, our next two guests say the recent rally still has some legs. sam and liz defend their bullish outlook coming up. the government is now threatening that cyber a -- saying that cyber attacks threaten our country. rsa will explain. also last week's deadly shooting on the vegas strip is only the latest act of violence in sin city. we have a live report coming up on a violent crime wave there and if it's eating into the city's bottom line when it comes to the very-important tourist trading. that's later on "the closing bell." [ male announcer ] any technology not moving forward

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welcome back. if you're just joining us, markets are seeing a selloff as we go into the final minutes of the trade here. dow down 132 points. the s&p back below 1500 for the first time in a little while.

problems in washington and overseas, though, are not bothering one of our next guests. sam stoval. >> welcome, friend. liz ann sanders of charles schwab. welcome back. >> thanks. >> given what we're seeing in the market today, what makes you think this market has factored in a lot of the headline news? >> i think a lot of the news has been around for some time. i think there's a possibility we could see di jegs of the range we've had. right now the day pa we're looking at from an economic perspective. and that because the wall of worry is a relatively old one, that's why i think that much of it has been factored in? >> do you see a 10% move?

>> i think a 5% move, 5% to 10% move could happen at any time. >> liz ann, i know you like this market. you've been a bit defensive in what you've been buying here. but a pickup in volatility. we were up 120 points on friday. now we're down 130 today. >> i know sometimes you o like when guests duke it out. it's not just because sam is a friend. but i happen to agree with him. we have been more defensive in the near term only because of sentiment having been stretched. the market on some technical measure has gotten overbought. don't think any correction will be sinister in nature. but a few percentage points i think is probably a little bit overdue here. beyond that, i think once we get through not only the sequestration, but the potential for the government shutdown which is later in march and then of course the debt seelg, that's the reason we had a bit of caution in the tactical

positioning. i think things look good for the near time. >> i'm watching the market. we're down 146 points. is there a level when you might change your mind if we go down low enough? >> not a specific point level on the s&p 500. i think a few percentage points in terms of a correction assuming there's not additional news to suggest things get worse or we take out technical support levels is probably about the limit to this correction. i think we would look back and say it was a decent buying opportunity. we're probably not quite there yet. >> all right, sam. could the fed be the fly in the ointment, if you will? they have been providing the underpinnings for for this market and in the latest policy statement, you can read it a couple of different ways which created a lot of uncertainty. now that we have mr. bernanke speaking, could that be something that gives you the 5% correction or 10% correction depending on what he says? >> i think certainly investors are expecting him to continue to say they'll be providing enough

liquidity to keep this market awash. and therefore it's not a tightening situation that could cause investors to be worried. but i think because there are in a sense there's creeping hawkishness, if you will -- >> at the fed, yeah. >> -- that that's causing investors to say all right when will we start to see a tightening of rates and what kind of effect could that have on the market? >> s&p down now about 1.5%. liz ann, i know you are by no means a trader. but would you be buying some of these dips right here? >> maybe not quite yet. i think that as i said i think a few percentage points more probably is where we go. but to try to time this on a day-to-day basis, i think one of the things we've done in erm thes of where we play defense is just going fairly close to the vest from a seconder perspective. not thinking particularly sequestration and how sector biased that is in terms of impact. you want to try to stay no more than about sort of market weighted from a sector perspective.

let the dust settle, then look for your buying opportunities beyond the near term. >> thank you, both. talk to you later. just a reminder, we've got speaker boehner's conference coming up. we sit here on the lees of the session. the dow's down 167 points. >> not a pretty close who were hoping for the rally to be sustained. we are just minutes away from the house speaker, mr. john boehner's statements on the looming spending cuts deadline. we will bring you his comments live. so far the market's not been responding well to this in washington. others say they're not responding at all to the battle in washington. that may change soon, though, bill. >> i think it's changing right now. >> we will hear from armed services chairman buck mckeon. why he says the military will be decimated by the spending cuts. that's on the way. you're watching cnbc, first in business worldwide. ♪

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coming up before the bell closes here. right now as it stands we're having the worst day to the downside if you can consider that bad. if you're short the market, you're loving this. but it's the biggest down day now for the dow and s&p. opened higher this morning. we're all looking up we were less than 100 points away from the all time hides. we jinxed it. on the lows of the session. down about 200 points right now for the dow as we head towards the close. s&p same thing. back below 1500. it was higher on the open this morning. now we're sitting on the lows. down 26 points. the yield on the 10-year, to this point the bonds hadn't moved that much. now they are. look at this. the yield of the 10-year is at 186. we haven't been outside this trading range for awhile now we're at the lows of the session here and going lower. and what's going higher? a safe haven play like the dollar. the dollar index now is up a third of a point. just off the highs of the day.

what else is going higher? the volatility index. the vix is up sharply now. a 35% gain, peter costa. fear is back in the market. >> fear for someone, but not me. i would definitely buy this dip. i feel the market has room to go on the upside. we were expecting a pullback. we're down 1.5%. all right. big deal. >> the transports are confirming that pullback. down 120 points. which is a significant move for that part of the market. that confirms what you were looking for in the market. >> i'm very happy with the pullback. and i think we can expect another move like this. maybe not 200 points, but i do think that there is some more selling to be done in the market at some point in the next couple of days. >> based on what? based on headlines? >> the headlines probably started it, but i think what