quickly, 1142 reasons for japan to style. the megapotato is going for sale at mcdonald's. four people reaching into a vat -- that is a real product, my friends. >> okay. markets are currently at a high. we're going to watch for the last hour ago, an old way to the end of trade, to see if the s&p can make it into the black as well. thanks for watching. hi, everybody. what a day on wall street today. welcome to the "closing bell," as we enter the final stretch. i'm maria bartiromo on the floor of the new york stock exchange. >> i'm bill griffeth. we came down here where the action is, and boy, has it been action in the last 24 hours. you look at that chart of the nikkei -- >> a thousand points. >> down 7%. the european markets were down 2% and our markets on the open this morning, down 126 points on the dow and now look. we've come back all the way. >> total buy on the dip situation. take a look here. now we're at the highs of the day with a gain of 20 on the

session. let's get to bob pisani. he's been talking to traders all day. he's been on the ride since the opening today. bob, what kind of changes have you been watching? >> the one thing that surprised everyone, people were expecting a very volatile day, and while we've had big amplitude, it's been very quiet since 10:00. all three indices were in the black. s&p just turned positive a short while ago. the vix has come to the downside. it's true, we've seen volume strong. i think we'll see 4 billion shares on the consolidated tape for a second day in a row. that's big, big volume, but not wild, wild craziness like we saw yesterday. what we did see some wildness in is the utilities today. i want to point out some very strange tinhings that happened the utilities. american electric power opened at 48.18. but traded as low as $22.28. that's a 50% drop in the stock.

it happened with another one too, nextera. it started at $78 and traded adds low as $30. better than a 50% drop. the trades that happened, and all of them, including those low trades, were legitimate ones. they're standing. they're not going to break any of the orders here. number one problem, there's no circuit breakers s at the open at the close. this is a new program, but it's not applying at the open or the close. i'm pretty sure if we would have had them, this would not have happened. the books are very thin, not a lot of orders, and moderate selling pressure sweeps the book with the market order and you end up with some of those low prices today. here's something that's very interesting. look on american electric here, see if you can see that low trade there. that was $22 and change, it's not there. it's been removed. all the orders that happened at the lower prices are standing, they're legitimate, but they're being removed from the tape. they're called aberrant trades. that's an issue that's somewhat

controversial. same thing with nextera. try to find a trade down in the 30s, you don't see it. it's been removed. by the way, i want to point out, this is not the nyse's fault. they very much argued that the circuit breakers should be in place all throughout the day, from the open to the close, all of the exchanges, including nasdaq, argued for this. the s.e.c. didn't want this. they're going to have a new program that comes into effect in august that will put circuit breakers in effect throughout the trading day. let's hope it happens quicker than that. guys, back to you. >> indeed. thanks, bob. let's talk about this incredible 24-hour period for the markets in our closing bell exchange. michael farr, cnbc contributor from farr miller in washington, david kudlow from mainstay capital management, joe tanias, and warren myers who works on the floor here with dme securities. let's start with you on this crazy trade. obviously, we were following the lead from what happened in asia

overnight and europe this morning, but we've come back today. what happened? >> you know, i look at it this way. the fed minutes that were released yesterday, i think, was a test by the fed to see what would happen if they hinted they might to tighten a little sooner than people anticipated. and we had a sell-off, and europe and japan got the brunt of that sell-off with a little bit of negative news out of china. what we saw this morning, i got a majority of buy orders coming in this morning. i think people came in saying, this market looks like it's going to be down, this is going to be a great opportunity to jump in and add positions. >> buy on the dip mentality still alive. >> it held, but the problem with that, it turned over so quickly, no one got that opportunity to buy what they wanted to. >> it was so fast. >> extremely fast. >> joe, let me ask you about the buy on the dip mentality here in the u.s. versus japan. do you see that same buy on the dip mentality for investors looking to make money in japan as well? or do you think that market is poised to continue lower? >> i think, at least in the near-term, that opportunity still definitely exists.

look, the underlying fundamentals that led to the mark's rally in japan just a few short months ago still exist today. i think it's a bit of a knee-jerk reaction, following the fed's comments, and of course, having less than inspiring data coming out of china had an impact on japanese equities. but i think in the short-term, at least, i think the yen can weaken further and there's more upside for japanese equities. >> we're looking at a chart right now, joe, i don't know if you have a monitor there with you of the dow and the nikkei this year going back to the lows of november 15th. and they track each other very closely until right now, with that 7% decline in japan and we're holding our own today. do you think that correlation is going to continue? >> i wouldn't necessarily, you know, look at the correlation and say it's going to exist forever. part of the issue with japan, of course, it's been very difficult to make money in their stock market over the past two decades. you had this deflationary spiral over the past 20 years, and that's led an ongoing off and on recession. and just this time, since abe's

been elected, you see the yen weaken and the markets rally. i think investors have been getting a little bit skeptical and looking for reasons to sell. and of course, following bernanke's comments yesterday, i think that provided a reason. these corrections, however, i think are healthy. >> we're just trying to figure out if there's a buy on the dip mentality in japan the way there is in the u.s. >> i would suspect that there is a buy on the dip opportunity. it still is there, the underlying fundamentals are still supportive and i would argue there's still some upside. >> so what do you want to do here? >> i would agree with most of what's been said relative to buying on the dip here and in japan. whether it's the japanese government bonds creeping above 1% in yield or the poor data on the flash pmi out of china that caused a sell-off, it was a steep sell-off, but, you know, everything's changed there. with shenzo abe and crowzo coming in, if anything, we think

we'll see their monetary policy and the easing, the facility they have in place, their quantitative easing will response in this related to purchases increased overnight. and japan continues to do well. up 80% since mid-november. it was due for a correction. there was a reason for some selling to come in. but we're seeing this buying on the dip and we think we'll see that tonight. >> they pretty much got their correction out of the way in one session. >> michael farr, on facebook this morning, you used the term "seat belt." you were telling your clients, buckle up, get ready for something. what are you expecting here? >> well, i was expecting a follow-through from china and bernanke yesterday, i've got to believe, bill, that bernanke and fed have to be fairly disappointed right now with this market rally and bounceback. i think warren was right. you know, they started to telegraph and they started this jawboning process that they hope to use to let air out of the euphoria, out of the, perhaps,

irrational part of the exuberance we've been experiencing in preparing markets for this withdrawal of accommodation. and i don't think -- i think the market's telling them today, we don't believe you, mr. chairman? we think you're still going to be there with cash. we don't think you're going to let the markets go down too far. and we don't believe that you have the guts to actually pull back and let this water seek its own level. >> wow, that's basically -- you're nodding your head. what warren is talking about, let's talk about the ten-year yield. i'm wondering how scared 2% becomes? >> i don't think that's a worrisome level at this point, not in the at least, actually. ting it's a knee-jerk reaction and that's basically all it is. i think at the end of the day, i think -- i agree with the last comments, that people are looking at bernanke saying, i don't think you can or should tighten too soon. you've put too much effort, too much money, too much time in this easing that if you pull back too soon before this

economy is truly self-sustaining, then you're asking for trouble. and i don't think he's -- i don't think he wants to do that. i don't think necessarily think he has the guts to do it. i don't think he wants to do it. >> one word of caution here -- >> yeah? >> i'm sorry. one word of caution here. i talked to a trader on a major desk before coming on. they tell me that volumes are tapering off and orders are tapering off into this late afternoon rally. so i'm not sure that this story is over. i think the beginning of next week is going to be very important and i think case-shiller is going to be very important next week to really determine whether bernanke is believed or not. >> home sales are reporting. >> thanks, everybody. >> thanks, warren. >> we'll get to as those utilities. thank you, warren. let's get some breaking news now on the s.a.c. insider trading investigation. kate kelly joins us on the phone with the very latest. what do you have, kate? >> bill, the plot is definitely thickening for s.a.c. capital with the receipt of subpoenas by multiple senior management members at that firm, in the

same round of subpoenas where steve cohen, the firm's founder, was asked the to testify before a grand jury, we believe, last week, he received that. and in addition, thomas conhenny, the president, steve kessler, and phil villhauer were also subpoenaed. so things are heating up in terms of the government's probe of s.a.c. and whether or not they going to try to talk to some of these senior officials. we get the sense that they're building a case against the firm broadly. perhaps not as much as steve cohen personally, given that he may be havocked to testify against his own firm. it's not clear whether or not he will testify or if so, whether he'll take the fifth amendment or not. in addition, we've learned that there was a second employee call with s.a.c. officials held yesterday, that would be the second this week, and unusual for a firm that tries to be communicative, but at the same time, has not been wanting to

comment on what may or may not be going on in the legal investigation. yesterday, i'm told, president tom conheeney spoke to the staff and talked in general about what's happening in the press. the staff has seen reports this week about the possibility of firm managing only steve cohen and others money, about becoming a family office, with charges of racketeering among other things, and essentially, conheeney and others pointed out that they feel like a lot of the media reports have been erroneous, of course, they may not know what's in the government's mind quite yet, and at the same time explaining what some of these concepts might be, bill and maria. so, for example, they had outside counsel describing theoretically how racketeering could work here. it's that kind of thing they're trying to communicate here, while at the same time, keeping their cards very close to the vest. >> kate, lots of developments there. thanks very much. we'll keep checking in with you as they develop. >> if you just joined us, you missed a lot. the dow opened down 126 points

this morning and it's come all the way back. so 152-point swing in this market. we are not finished yet. we've got 50 minutes left, up 25 points. and once again, it started with the federal reserve yesterday, so is the fed now worrying that wall street is expecting too much from the fed? jeff cox says, absolutely. he joins us next with what he says is the proof. also, hewlett-packard, huge winner today, up 15% after beating wall street's earnings estimates last night and hp is also the best dow performer this year, up almost 70%. when we come back, we'll look at whether there's still an opportunity to jump on the hp bandwagon. but then there's all that sideline cash, bill. there's a new survey showing that wealthy investors are sitting on mountains of cash. but why? what do they know that others don't? we want to take a look at that cash and see if it's poised to come into stocks is or not. that's coming up on "closing bell." hey, so uh... what's going on here?

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as the federal reserve worries that the markets are expecting too much from the fed. >> as you know, fed policy is supposed to focus on two things, maintaining full unemployment and maintaining price stability in our economy. but our jeff cox has uncovered some comments from the fed that show concern that investors are expecting the fed to keep pumping the gas as well. >> and on and on and on. he joins us now along with fed expert greg ip and matthew slaughter of dartmouth school of business. >> jeff, tell us what you found? >> bill, i was parsing through the minutes yesterday and i found one sentence in there that was very interesting, that didn't get a lot of discussion. the fed minutes noted that some members expressed concern that investor expectations of the size of the balance -- size of the asset purchase program appear to have increased somewhat. now, to me, that almost reversed the paradigm of what we're used to seeing when the fed comes out with this statement, where wall street tries to figure out what

the fed is thinking. that indicated to me now that the fed is trying to figure out what wall street is thinking. now, we all know that what the fed does is important to investors, but now it's really starting to look more and more like what investors are doing is important to the fed. it leaves me to wonder whether with these big reversal days like we had today, like we had yesterday are going to become more commonplace now as this paradigm shifts starts to take place. >> you know, now it's all speculation. when do they stop, when do they begin? you know, greg, you agree that this is important? that the fed could be thinking now that wall street's expecting too much? >> yes, although i think i read it a little bit differently than what jeff does. now, in this new world, where they're not changing the federal funds rate, instead, they're buying or selling bonds, they don't have a fed funds futures market where they can instantly see what the market thinks. so instead, the new york fed goes out every six weeks and they survey primary dealers and they say, hey, how much do you think we're going to buy between now and the end of the year? it so happens that today, the

fed released a survey they prepared for the last fmoc meeting. and it showed that as of that meeting, the street thought they were going to do $85 billion a month, month after month, right until the end of september. and in spite of all the talk of tapering and that the labor market continues to get better. what i read in that statement, that jeff highlighted, that was concern by fed, that their reaction function is not well-understood by the street. that they do intend to start pulling back on the amount they're buying as the economy gets better. >> that's the expectation for the perpetual punch bowl, greg, is the way i look at it. >> right. and i think the key thing is the fed, what bernanke tried to drive home yesterday is, it's data dependent. we do think there's a chance we'll start pulling back the next few meetings if the data support that. what i think they're looking for is evidence that that message is getting through. >> matt slaughter, what do you think? is all this hand wringing by the market about taperi ining soone rather than later just much ado about nothing, or could they start sooner rather than later, do you think? >> well, they could. so jeff's discovery i think is

an important insight. part of what's new for the fed recently is they've been very explicit in talking about unemployment numbers and targets for meeting the part of its mandate on full unemployment. in the history of the fed, they had never been this explicit. but there's no playbook for who the fed implements this going forward. and as greg rightly points out, the labor market has been improving a lot in recent months. the unemployment rate is now 7.5%. it's not inconceivable we're getting close to that 6.5% that chairman bernanke and others have talked about by the end of this calendar year. >> the end of this calendar -- and you know the market's going to be ahead of it. the market is going to be anticipating, even if it's in 2014. go ahead. >> i think it's so important. we've heard a lot of people talk about the fact that bernanke doesn't care about the stock market. i think bernanke and the rest of the fed, i think they do care about the stock market. i would compare it to -- the stock market is kind of like the mistress in this marriage between the fed and the economy, that you're not supposed to talk about it, but it's out there and the fed understands it, and they know that this is their transition mechanism. and if the market the not

getting the right message, that's going to cause chaos. >> what do you think about that, greg? do some degree, is the tail wagging the dog? are fed officials watching market responses too closely and letting that dictate what they said publicly about their expectations for future policy? >> maybe, but no more than usual, bill. i mean, i think they look at the stock market and the bond market in a special way. and in terms of the stock market, i think they want to know, does a stock market rally because they're just expecting more and more money to be printed or because they think that the policy is working and the economy is getting better? if i'm the fed, i'm looking at today's market action and i'm actually probably pretty pleased. the stock market did not fall out of bed and the bond yield is still up where it was yesterday. that is exactly the kind of response you would expect to see of a market that is expecting less bond buying, but really isn't that worried about it. >> right. all right, gentleman, thank you all for joining us, appreciate it. a very, very important topic for the markets right now. see you later. >> meantime, it started off with

a sharp sell-off overnight at the nikkei in japan. josh lipton looking at that angle. >> maria, a day in the red for japan. the nikkei hit a five-year high at the open, but then rolled over, falling 7% and closing at the lows of the session. biggest drop since march 2011. of course, the nikkei has also enjoyed a monster run. still up some 40% this year. put that in context, the s&p 500 is up about 16%. some nyse listed japanese companies falling notably as well. important to remember, of course, the also remarkable run some of those stocks have enjoyed. financial stocks like nah murrah and mitsubishi down today, but still up for the year. sony, also saying that they would weigh that call from investor dab loeb, down today, though still up some 90% in 2013. and finally, toyota slipping, but still up some 30% so far this year. bill, back to you. >> all right, josh, thank you very much. while we have come back from this low on the dow of 126-point

dla decline, we're backed to unchanged, but we keep hearing the thunder striking outside. the rumble of thunder. could that be a metaphor for what's to come before the closing bell. >> it's crazy. no matter where this day ends, it's been incredibly volatile and interesting for this market. but is this still a buy on the dip market? we will talk to the pros about that. >> also, the dow still up 17% this year. that's only a little more than what hewlett-packard is up, and someone here says there's still a lot more room to go for hp in the future. we'll talk about that when we come back. only part of the equation... before reminding ourselves that some bonds are more valuable than others... and before weighing the ups and downs in your life over the ups and downs in the market... we changed the way we help you live in retirement by changing the way we work with you to and through retirement. connecting your wealth with your health and your life.

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welcome back. the dow might actually be lower today, if not for hewlett-packa hewlett-packard. the technology giant surging today, up more than 15% on that earnings news we brought you last night. the company remains the dow's best-performing stock year-to-date as well. and according to what meg whitman told cnbc's david faber today, more good times could be ahead for the company. listen to this. >> we are growing businesses that power the new style of i.t. we've got declining businesses that powered the old style of i.t. so we're in that knot hole that one has to get through. but i feel good about the growth prospects for 2014. >> so is hewlett-packard still a buy? let's start talking numbers on h hp. we have rich roth and on the fundamental story, zach

carabell. rich, how does hp work here? >> i feel good about the prospects for the chart of hp. i think there's significant upside here. and when we bring up this weekly chart, you'll see exactly what i mean. this stock has been in a protracted down trend for almost three years now. but earlier this year, we break above that well-defined down trend and we take out the 50-week moving average for the first time in over two years in one fell swoop. but what i really like about this chart is that texasbook head and shoulders bottom. that's a classic reversal pattern that's been forming for the last few months. i see upside to $38 a share. i would not sell a share right here. i would be a buyer of the stock. >> zach, what do you think? how are the fundament also of the company? >> i'm sure that music to meg whitman's ears. i would say the chart looks to me as the, "oh, look, hp is not going out of business" chart. people were selling this stock after, you know, we knew this

litany, you covered it, maria, a series of scandals, missteps, bad acquisitions, multiple ceos, just thing after thing after thing, and that obscured the fact that while a lot of their businesses are not dynamic, they aren't going anywhere, and they feel a need to however commoditize, you know, printers or et cetera. so i don't think this company is going anywhere, but nor do i think this company is going anywhere beyond the fact that it has now recovered to some level of normalcy. >> and what, zach and brmaria, what i really like here, there are only six analysts on wall street that have this stock rated a buy. i think there are seven analysts that still have lehman a buy. that's telling me that the street doesn't like this stock and it's the best-performing stock in the dow, up 70%. there's still plenty of room for people on the bandwagon. you have to be a buyer here. >> you threw me with the lehman thing, rich. i'm now thinking like, what's lehman's chart today on the technical side. >> i mean, does the earnings, though, the report that we saw just yesterday, does that indicate anything in terms of fundamentals to you, zach?

>> no, it was a very flat revenue report as it was for a lot of big cap techs. hp is certainly not an outlier for what we've seen throughout the space. this is what it's going to be. we may get a little bit o of a rise above here on a stock level, but i don't think it's clear where hp goes an a company from here. >> we'll leave it there. gentleman, thank you. we'll keep watching, thank you. and check out the new online edition of talking numbers on cnbc.com/talking-numbers. >> got that? >> or go to cnbc.com and search for "talking numbers." >> look for brian's picture. pretty easy. the the dow has come back, so has the nasdaq, well off its lows of the day. seema mody has our big moves. >> bill, a volatile session for the for the nasdaq. we were down, then up, and now treading the flat line. keep in mind, sirius does supply its chips to apple and that's why other component suppliers of apple are also trading lower.

pandora shares up on heavy volume, ahead of its earnings report. that's another stock on the move. traders telling me that options activity in pandora suggests that we could see some big moves in shares after pandora reports. so keep an eye out on pandora. lastly, some big movement in small cap biotech. this company is topping an inhaled insulin. up better than 190% year-to-date. talk about beta. bill? >> seema, thank you very much. >> we're in the final stretch of trading. it's been a wild day. we are, after all of that volatility, not too far from where the market opened. >> wouldn't that be the great irony? we finish unchanged today? that would be perfect. >> there you go. >> more than half of the stocks in the s&p 500 have hit new 52-week highs right now. we're going to hear from somebody who says that actually is a bearish sign for this market. really? we're going to make the case. >> and later, is our market in danger of a massive sell-off the way we saw in japan overnight?

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beware of a correction. how many people have been saying that on this program, right? they've come around here. what's unusual about what our next guest is saying is the reason he says we're due for a pullback. he says there are too many stocks hitting 52-week highs right now. yeah, too many of them. all those yearly highs for stocks making him bearish right now. >> but why? >> jonathan krinsky is with us from miller tabak. he said the last time we had this many new highs, the market experienced 4.5% correction. jonathan, you think it can happen again. >> it's an interesting case of, be careful of what you wish for. as the indexes make new all-time highs, you would like to see a lot of stocks confirm that and make new 52-week highs as well. but what we saw last week was an exceptional number of 52-week highs. in fact, the most since last november -- excuse me, november of 2010. it was over 500. so if you go back to 1990, there's only been about three instances where the number 52-week highs exceeded 600. one was in october of 1997,

followed by about a 13% correction. one was in 2003, which was actually bullish for the next month, but upside was then limited for another year. and then the next time was in april of 2010, where we also saw a pretty severe correction thereafter. >> how does this work? i mean, when you get that many new highs, do you just simply run out of buyers? what goes on? and the reason i ask, we talk about all the cash that's sitting on sidelines right now, that theoretically could move in that make the market more attractive as we are hitting these new highs right now. >> exactly. and it's not a -- you know, it's not an end of the bull market type of scenario, but we've had an amazing run. we've been up pretty much in a straight line since last november. and exactly, like you said, i think it just shows a bit of a blowoff, a bit of buyer exhaustion when you get, you know, sustained up-trend followed by an exceptional

number of new 52-week highs. >> what about the idea that the federal reserve is going to continue to be there, buying bonds, to the tune of $85 billion a month. how does that play into your thinking? and how big of a correction are you expecting? >> you know, i mean, you could have used that argument at any of the prior corrections we've had recently. and i'll use japan as an example. you know, their policy is pretty similar and if you look at nikkei futures, they actually dropped 12.5% from yesterday at noon to this morning's overnight lows. so when you get these buyer exhaustions, it also uses up a lot of buying power that shorts have. so a lot of shorts have been squeezed, so that takes away a lot of buying power in order to get that pullback. >> so what kind of correction are you expecting here in this country, then? >> you know, i'm looking at 1597 on the s&p 500. that was a prior resistance back in mid-april. i think that's a pretty reasonable area to expect, you know, the pullback to find support. again, i'm not looking for a major, multi-year bear market

right now, but i think, you know, a little bit of a pause that refreshes makes sense here. >> we'll leave it there. good to talk with you. thanks for weighing in on that. see you soon. >> appreciate it very much. >> appreciator your time, jonathan. 25 minutes left here. it could go either way. we're virtually unchanged. down six points on the dow. >> earlier, art cashin told us 70% was to the sell side, but it was small, so we'll see if that materializes. how are traders positioning themselves for tomorrow ahead of this wild ride? we're headed to three different exchanges to find out. and td bank's ed clark is back with us and tell us how the tapering by the fed will affect the financial sector, coming up. ♪ [ agent smith ] i've found software that intrigues me.

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welcome back. the calm after the storm right now as we approach the close. we are seeing wild swings in this market. the dow staging a huge comeback, turning positive after falling 125 points earlier. so is this more evidence that it is a buy on the dip market? we want to talk about that? >> let's talk about it with three different traders and see what they've been seeing in terms of order flow. gordon charlotte from rosenblatt securities with here on the floor of the new york stock exchange. james romeli from keene and jeff rosen at the nymex talking

energy and other things as well. gordon, crazy day. what kind of order flow -- what did you see here today? >> when things started in asia and carried through to europe, it looked like it was going to be kind of ugly, but it already tempered itself a bit as we got to the opening. and even though we were ugly on the opening and dead red most of the way, it quickly settled down, bill. and you had a sense pretty quickly that they were going to stabilize here and we were going to get back to that buy on the dip mentality. look, the data was conflicted between manufacturing, between unemployment, between housing. >> home sales were good. >> right. >> manufacturing was not. >> right. >> speculation around the fed? >> right. so there's nothing to suggest, really, that they're going to derail what's been happening. so it seemed like, what if this is going to be one of those opportunities. >> so what about that? james romelli, we knew that china was slowing down. the manufacturing report seemed to take many by surprise, causing that huge meltdown in japan. and of course, it all started yesterday when there was all this speculation about whether

or not the fed is going to start the tapering down sooner rather than later. what's your take in terms of the sustainability of the sell-off? does it resume tomorrow? >> you know, i don't think so. we see this buy on the dip mentality time in and time out, throughout this year. i think we had a perfect confluence of bad data from china, speculation and uncertainty over bernanke and the fed and this strength in the japanese yen. we woke up this morning, saw the japanese market selling off as much as it was, thought the world was ending. if we look at the s&p, we did break through the recent trend lines from the april lows to where we are now. however, the overall trend is still very much in tact. order flow was a little thin today. however, the most interesting trades i've saw were in japanese equity etfs, the ewj and the dxj. those were the biggest orders i saw. paper selling puts in the dxj, extremely, extremely bullish. those stocks made a low around 9:00 chicago time this morning and were bid all day long. i used that as an opportunity to

get long those names again. >> you were stepping in at that point. jeff, you noticed, as we all do, this correlation between stocks in the s&p and crude oil. is that going to continue here? >> let's put it this way. whatever you can count on for a couple of days, you probably have to discount for the next couple after that. but the last day or so, two days, they have been in lockstep with each other. and as we started to tumble off with the s&ps, the oil came down, we stabilized this morning, and the oil, you know, proceeded up with the stock markets. i was just looking at the charts, and the s&p seems to have pretty much an island reversal. so you may have a while before this market can make a new high. you just, like the oil, i think they've broken down somewhat, and i think you've got these markets to be sold on rallies, until further notice, i think. >> what are you seeing in terms of conviction, customers out there? do you think they're going to continue coming back or do you think they're going to be selling on any strength? >> no, i haven't seen that conviction to sell.

but, listen, when it comes and it's inevitable that it will come. it's going to be sharp and, you know, just the way they moved in japan, it's going to be fast. you have to be buyer beware on that. but until of the end of the month, you've got a lot of activity that people are focusing on. we saw a bunch of ipos down here, we've seen some merger activity. right now, there's nothing that's changed precipitously. you've got to consider that we're still going through the upside. >> what about japan? what about japan? do you think japan is dpibeginn of a correction? >> the way that chart has gone, over the last year, 7%, you can't even say it's a correction. >> and as james pointed out, from the high on thursday in japan, you know, they already had their correction. they were down 12%. or i should say, the day before, over there. so they, you know, they've been -- if you say that a correction is 10%, they've had that already. >> it's a good point. it's a new market. you talk about high-frequence trading, well, there's high-frequency printing going on. >> james, is the fed the thing

we must keep an eye on and as long as they are not tapering, we must not sell? >> you know, we see bernanke making this comment that they could taper within the next couple of meetings, i don't really think that that is in the cards. as an active trader, i'm probably a lot less concerned with the longer term picture than most are. the recent term price action taking away today and yesterday is to the upside. and that's a side that i want to be on. >> we'll leave it there. thanks, everybody. appreciate it. >> get ready for the close. >> just about 15 minutes away. we've got a market that right now is down about 6 points on the dow jones industrial average. 15 minutes before the closing bell. >> analyst david saurowerby warg that analysts not rush into this market right now. a little contrarian. tell us why, coming up. and most wealthy investors still have a substantial amount of their money in cash, on the sidelines. will a potential cash injection spark the next leg of the bull rally? or do these high net worth people know something that os do not? that's later on "closing bell." it's as simple as this.

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some breaking news on today's erratic trades from nexterra energy. what's the latest. >> we got a statement from the cfo, maury dohurst. he comes out and says, we are

continuing to try to understand exactly what happened in the first few minutes of trading this our stock this morning. tennis naturally a concern for all our shareholders and potential shareholders. this type of market behavior is not what we would expect from a well-functioning and well-regulated exchange. and for those of you who didn't follow this rather wild opening, take a look at next energy. it opened at $72.67, a little bit below the close yesterday. but more importantly, immediately thereafter, in a series, traded as low as the 30s, into the 30s. i have a trade at $30.37. but there were certainly trades in the 30s. and of course, the nyse investigated this along with american electric and decided these trades would stand, because they are legitimate market orders among other things. there's a couple of problems here, the nyse is in a very difficult position right now. there are no circuit breakers at the first 15 minutes and in the close. nothing to protect the individual stocks from gyrating rather wildly. this was foisted upon them by the s.e.c. it's a requirement, there's no -- there's going to be august 5th. that's a problem.

secondly, there's very thin books. but you can imagine at how unhappy the company is at this point to see trades going to $30. you'll notice if you look at that chart, you don't see any trades at $30. that's because they've been removed. you can't see them. they're called aberrant trades. the trades that were in the 30s count, they're legitimate trades, but they're simply not on the tape. and i think that's one way to try to mollify the company that's obviously unhappy. haven't heard any word from the nyse on that, but that's my interpretation of that. >> somebody made a lot of money if they got those trades in the 30s, even if it didn't make it to the consolidated tape. >> how did they remove them from the tape, though, bob, if they're actually going to stick? >> right, that's a good question. they're called aberrant trades. >> they certainly are. >> and while the trades are legitimate, the trades stand, they're simply removed so that nobody can essentially see them. it's a way of trying to mollify the company. i think it's a problem, because, listen the trade is legitimate or it's not legitimate. >> right, exactly. >> it's not halfway in between. this sort of looks like it's trying to be both things. >> explain that to the irs when you go to sell those, right? >> thank you.

>> oh, they were an aberrant trade. >> they took the fifth. >> thank you, bob. stocks the danger of the first two-day losing streak in more than a month, but david sieberg from keown says investors should be buying on the dip still, right? >> absolutely. i think you should be buying on the dips. we walked in this morning, s&p futures were down 15 when i walked in. everybody i talked to said, you've got to wait a couple hours and then get back involved. because the market is going to rebound. and that's what we're seeing here. that's exactly what we saw. >> yeah, but, i mean, what about the worry that the federal reserve is going to start pulling it in? is this a warning sign for us that, in fact, this could happen in the next couple of months and create an even bigger sell-off? >> look, i'll tell you what. absolutely, i think that's a concern. and that's the biggest concern right now in the market. and that's what people are talking about. but i'll give you an example. if you look at a chart of the s&ps and the economic surprises over the -- you could back date it seven years ago and you could look at, just from the beginning of this year, from the beginning

of this year, we saw the s&p's takeoff. and the economic surprises have been to the downside. what does that tell you. it tells you people have a lot of confidence in what the fed's doing and what the policies are. and they're right behind it. so we're seeing the market take off. we know the fed's going to pull back at some point. it's inevitably going to happen. they're not going to do it in a way where it's aggressive. they're going to make a decision and pull back a little bit. see how it takes place. see how it holds. monitor it very well. they're not going to be very, very quick to do this in a way that's dangerous to our market. >> let me ask you about something you said in your first answer there. you said, wait until, you know, the first couple of hours, see what the market does. what if the market sell-off had continued. would you not be stepping in at that point? >> i'll tell you what, it's interesting you say that, because everyone i talk to, there was no concern that the market sell-off was going to continue. traders,, you know -- >> why? what -- >> is that scares me right there. >> what told you that we would

not see -- >> it wasn't that they told us that we wouldn't see it, but i think people are so convinced that this market is going to continue higher, they were very comfortable buying on the dip. >> how is that not complacency, david? >> i don't necessarily see it as complacen complacency, i see it as conviction. and i think people are very comfortable with what the fed's done and the policies they've put in place. i think they're very comfortable with the way they're beginning to pull that back and how it's going to be a very slow process, an efficient process. and i think that, i think, again, people are very comfortable in risking assets now. everything that led us into the downturn is starting to lead us out. you're seeing the real estate market improve, you're seeing employment improve, relatively across the board. people are becoming much more comfortable with risk. you're seeing money come out of money market funds, into equities. and that's a process. it's occurring, it's happening right now. i think there's a lot more comfort in that. >> all right. still, a lot of money on the sidelines, by the way, still. thank you so much, sir. we'll talk to you soon. >> thank you. we'll come back with the

closing countdown and see how we close things out for a wild thursday. of course, the worry is that the federal reserve could begin that tapering down on the economic stimulus measures sooner rather than later. but one of our next guests, heather hughes says the bigger risk to the market is the fed tapering too slowly. she's going to explain that later on the "closing bell." you're watching the "closing bell" on cnbc, first in business worldwide. [ musick ] i knew there were a lot of tech jobs available out there. i knew devry university would give me the skills that i needed to make one of those tech jobs mine. we teach cutting-edge engineering technology, computer information systems, networking and communications management -- the things that our students

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inside the five-minute mark before the market closes here. and what a 24-hour period we've had for equities around the world. we start in japan -- >> look at asia. >> -- where they had a five-year high around noon, their time, a little before noon, and then the sell-off began. they finished down 7% on their close. it carried over into europe, but at that point, the european markets, this is the german market. so they sold off on the morning, but then sideways. so some buyers did start to come in here, and they didn't come off the lows, but they still finished down 2%. the german market, a lot of the european markets did. then we get to our market, down 126 points on the open this morning, for the dow, and then this return higher. so we're right now virtually unchanged at this point. so it remains to be seen whether the selling continues in japan tonight. >> it really does. i think that's probably the critical question. do we see a buy on the dip mentality there the way we keep seeing it there? there is going to be a big crowd behind us developing in a few minutes, because there's an

arbitrage going on. so this area is going to heat up any second. >> it's going to get hot in just a second. >> keith bliss, what do you make of the volatility and what's going on right now? this tug-of-war that's going on between the bulls and the bears? >> it's fun for a change to have some volatility in the market. expect this choppiness in the market for some time to come. the fed is floating trial balloons and they'll be doing that for the next two weeks until we get the jobs number on june 7th and gain some direction from there. i would expect this churn to go in here. i think it's interesting to see the juxtaposition of the different markets around the globe and what's happened. we have a stronger buy the dip crowd here in the united states than they seem to have in japan and europe. so i would actually expect to see japan stabilize overnight and actually lift higher. and then we'll turn around here for the next week or so. >> that was my next question. how important is japan for the u.s. markets? how important is that what happens there, in terms of a buy on the dip, and does that translate to anything here? >> i think what's important about the japan markets right now is we want to see some stability and get back to a

solid footing over there. because their economy, it's important for the global economy. and if that market continues to churn lower, it will continue to go down. >> why don't we move up a little bit. i have the ceo of a new york stock exchange looking our way a moment ago, and if we can get out of duncan's way, then we'll be okay. fundamentals. do they still matter? i mean, this morning, we have the home sales number that come out. some people say that's what help bring our market back a little today. the best report if five years. is that the kind of thing we should be paying attention to as well, beyond the fed? >> i think once we get the fed cleared out of the way, it will be several months. this is the great debate going on in the market right now. is the equity market in the u.s. fairly priced based upon the fundamentals or has it been lifting out because of all the money sloshing around the financial system, around the globe. i tend to stick with the second argument there. and we saw the market reaction that they may peel back some of their bond buying or stop it all together. if you look at a forward-lacking pe, it is fairly valued. you can make the forward-looking

p.e. adjust to where you want it to be. but i think what's going to be really be telling over the next few sessions this week, and i'm a short-term trader, by and large, but also looking over the next month is what the fed is signaling and how that impacts the equity markets. i think it's going to be choppy. >> that's what we're focused on, what the fed does. i'll head back for the next hour. good to see you. thanks very much. >> see you tomorrow. we also have earnings out after the close today. salesforce and gap will be out, a couple of stocks that have done pretty well in this market. earnings have been tapering off, but we had a pretty good earnings season. >> we did from the standpoint of beating the estimates. when you take a look at. the broad sales -- >> revenue was kind of light. >> top line sales were light and that's been a trend we've been seeing for the last few quarters. there's only so much that companies will be able to squeeze out of their expense side. so i focus on top line sales. we don't get the kind of growth and keep stimulating the economy, particularly in the cyclical names. this market could stall in here. >> all right, thank you very much.

>> my pleasure. >> see you later. >> what a day, down 126 on the open this morning for the dow. we've come back, down about ten points right now. and we'll look ahead to see what happens tonight in japan. stay tuned. the second hour of the "closing bell" with maria bartiromo coming your way right now. i'll see you tomorrow. and it is 4:00 on wall street. do you know where your money is? hi, everybody. welcome back to the "closing bell." i'm maria bartiromo on the floor of the new york stock exchange. a wild day on the street today. stocks giving investors whiplash from all the wild swriings in volatility throughout the session. we were down 127 points a to the open. we were in positive territory a couple of hours later, only to go back negative and down about 11 points. the dow jones industrial average tonight at 15,295. volume picking up here on the big board at the end of the day with a decline of 11 points. the nasdaq composite also weaker, also on a wild ride today. but finishing