signs." i want to give a shout-out to my good friends from my daughter's school who came in and gave us a nice money for a charity auction. this is what they get, an appearance on "street signs." your money is not well spent, my friends -- kidding. thanks for coming up to hightown, new jersey. "closing bell" is coming up next. hi, everybody. we enter the final stretch. welcome to the "closing bell." i'm maria bartiromo at the new york stock exchange. we are off of the lows of the day. that's the good news, bill. >> yes. i'm bill griffeth. a market fighting back from a deep sell-off. we were down 180 points on the low of the day. we're down 100 points right now. and what's interesting, a lot of the intrasensitive stocks are lower today. a lot of people wondering whether this rise in yields in the treasury curve means that they're selling bonds finally to buy stocks. we'll talk about that, coming up. >> we'll talk about that and whether or not 2% is enough of a yield to actually get that money

moving. >> exactly. >> plus, our special series today on bargain stocks continues. looks like today, there are a few more names we'll add to the list. we'll have those picks for you and show you how far they may be poised to run. >> also, another first on cnbc interview, cisco ceo john chambers back with us, joining us in a few minutes from the all things "d" conference out in palace verd palas verdes. he's taking on microsoft in court and there's a lot more to discuss with john chambers, so stay tuned for that coming up in a few minutes. let's take a look at the market action. we've got a lot of it today. we were down close to 200 points earlier. we've cut that in half. feels like a mirror image of yesterday. the dow jones industrial average down at about 100 points. nasdaq down about 17 points, just one-half of 1%. and we're well off of the lows there as well. standard & poor's index chart looks a lot like the last, down

11 points. the market is giving it back after yesterday's rally. josh lipton in the middle of it all. what's taking this market lower today, josh? >> well, maria, as you and bill mentioned, we are in the red here, though it offsets your lows. down 179 on the dow at the lows of the session, now down 105. in part, traders saying it has to do with the financials, investors betting that rising rates, a steeper yield curve will benefit the banks. the financials do make up about 16% of the s&p 500. on the other hand, however, utilities less attractive as rates rise. and dow utilities, actually entering correction territory today. down about 10% from that april 30th intra-day high. reits also down today, lowest in about a month and a half. also big forpharma in the red t session. and home builders getting hurt as mortgage rates rise. mortgage rates have jumped significantly in the last four weeks. the itb having its worst day in about six weeks.

guys, back to you. >> thank you so much, josh. >> all right. so, have we seen the cover of "usa today" yet? this is this morning's. the headline, "bull run gets solid footing." >> uh-oh! i don't know, the old line was if it was on the coffver of "ti" magazine, if they put a bull on the cover of "time," is that signaled a top. "usa today," does that qualify? >> that is the second largest circulation out there behind "the wall street journal". >> what do you say we talk about it? >> let's do it. tom lee is with us from jpmorgan, terry dolan, and our own rick santelli. good to see everybody. tom, what's your take of that? it's on the cover of "usa today," saying that this bull run is solid. does that give you cause for pause? >> well, solid's not the most unequivocally supportive word out there. you know, it's sort of more of a -- it comes across as an ambivalent word.

and i don't think it signals any excess euphoria at all. so i would say it's an interesting headline, but not something that worries me. >> and this from the man who has the highest price target for the s&p among the major banks on wall street. 1750, 1710, i forget which one. >> yeah. >> which is it? >> well, it's 1715. >> 15, okay. >> and i do think the bias is to the upside. in other words, i think there's a very good chance the market closes much higher than that. you know, i think one of the things we have to remember is there's still a lot of money on the sidelines. it's not really captured in the mutual fund data, it's not really captured in some of the hedge fund data we look at. it's really captured when you talk to private banks, high net worth individuals. we're talking hundreds and hundreds of billions of dollars, still really sitting in cash. and i think that powers the market. >> terry dolan, you must love that "usa today" headline. >> well, you know, i felt like -- i feel like the market basically has a trend in tact, but when you see headlines like that, it crosses the mind, how

long the rally has been going on and how positive a correction can actually turn out to be in terms of building further strength. i've noticed recently in the updrafts, we've lost relative strength in the market in these rallies. i noticed that the vix continues to tick up a little bit from its lows. and i think we're seeing some signs that the money is starting the to flow out of bonds and unwind. i think that's going to bring, obviously, money back into the market, but right now, i would be looking for a downdraft in this market to last the next three weeks, perhaps, choppy, sideways, and downward. and then i think when it gets a little bit more consolidation, a little bit of a retracement here, the market will move back up and i could see another 5 to 7%. >> but terry, what's the catalyst that's going to actually do that? why would anybody step out of the way of this freight train that is the federal reserve? i mean, you've been calling for, you know, a cautious move, a sell-off in this market for a while here, and yet, we continue to have the same fundamental themes in place. and that is free money from the federal reserve and not a lot of

alternatives to companies that pay dividends. >> i think we see some cracks in that philosophy. i think we see, you know, we talked a little bit about yesterday about the chinese wealth fund establishing and diversifying its portfolio away from bonds, away from the treasuries. they know they could get potentially crushed on rate move up, but they're looking to diversify and participate in the growth in the economy and get returns that will diversify that portfolio. i think you also look at fed chicago president evans, who's backing away from quantitative easing, or at least hinting that, and basically saying perhaps our policies are already adequate. and i think, you know, here we have a long, slow, sustained recovery, but i think we're also going to have maybe the longest recovery in history, as we go forward. >> all right, rick, you know, with yields on the ten-year, we talked about this year, at a year high here, 215 today, do you feel, do you sense that we're going to start to see a rotation that's been talked about forever out of bonds into stocks? is that what's starting to happen here? >> you know, i really think that

what we've seen since early may, and what happened in early may, you had a fed meeting, and of course, you had the better than expected employment report, mostly on the revisions. and i think the combination of those two issues is apparent in yields. i think we're jumping in range, and it's proactively trying to find a new range. but i don't think it's the beginning of the end of the long position or tame rates in the u.s. doesn't mean we can't see 2.5%. we almost saw 2.25 today before we shaved about 12 basis points off of the yield highs today. and i do think that it's very difficult to answer that question. because i don't think the fed committee has any idea, truly, on how they want to proceed, and we have no history for them to be guided by. >> let me ask you, tom lee. we keep talking about this, you know, great rotation from fixed income into stocks. i want to ask you about the rotation out of dividend payers and into cyclicals, because we hear a lot about the cyclicals

being the group to own as, you know, we expect growth to start picking up. and yet, that's not happening either. it feels like investors out there do not care about earnings out there, do not care about the growth, but are more interested in paying out via dividends or buyback plans. >> that's certainly been the case for the last four years. i think that there's a lot of skepticism about growth. and that's why, as you point out, people are sticking with the dividend stocks, and it's telling them, this is the 80s again. i think it's really interesting today that we've had the sell-offs, and it is being led by defensive stocks falling. i think, partially, because, you know, rising rates can also signal markets are smelling better growth, which is good for cyclicals. it's really our take that the leadership is going to really start to rotate over the next three to five years towards cyclical stocks. so i don't know if it's this quarter, but i think this quarter really does favor cyclicals. >> gentleman, thank you. we're back to madonna and duran duran. it's the '80s all over again.

see you guys later. >> take care. >> but we have 52 minutes left in this trading session. we are well off the lows of the day. down 180 at the low for the dow, now down about a hundred points. >> big deal in sprint and soft bank. japan's soft bank reaching a deal on its just security measures. but one company not too happy about it. after the break, we'll talk with william plumber, his company is getting the short end of the stick. he'll tell us why. >> they're not real happy about it. and apple's ceo, tim cook, says he still has some game changers up his sleeve. but do shareholders believe him? we'll look at the stocks, coming up here. >> and cisco on a buying spree. plenty of cash left to spend. don't miss our interview with john chambers, cisco's chairman and ceo. that and a lot more coming up on "closing bell," the most important hour of the trading day. back in a moment. (announcer) scottrade knows our clients trade and invest their own way.

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welcome back. down day on wall street today. more red than green. let's get to seema mody, looking at the big movers over at the nasdaq. >> a couple of bright spots to take note of michael coors higher after reporting better

than expected quarterly sales. the ceo says luxury accessories are resonating with consumers. the upscale retailer plans to double the number of its stores in europe. a different story for chicos. its profit falling. same-store sales flat, management citing bad weather as a factor in its quarterly decline. now, the fresh market, shares popping today. its q1 earnings per share of 46 cents topped wall street expectations. the grocer also raised its full-year outlook for same-store sales growth to 2.5% to 4.5%. and here's another story to take note of. sallie mae shares rallying to a 52-week high. the student loan lender announced plans to split into two publicly traded companies and name e ed a new ceo. the stock up about 2%. l lululemon higher. ubs writing that, quote, the pants issue is behind us and the analyst now sees, quote, upside opportunity in q2 as lulu's standard yoga pants return to

stores. and smithfield foods moving higher after a chinese firm said it would acquire the pork producer for $4.7 billion in cash. according to d-logic, we have noun seen almost $180 billion in global m&a activity, just in the month of may. bill, maria, back to you. >> all right, seema, thank you. and along those lines, sprint is a step closer to being acquired by japan's soft bank after reaching a deal to calm national security concerns. our chief international correspondent, michelle crus caruso-cabrera has the rather unusual conditions of this deal. >> the newly merged company must appoint a new security director and that person will be on the board of directors and that person must be approved by the u.s. government. this according to the "wall street journal," which also reports that the u.s. government will also have the right to veto equipment purchased by the company. so we hear about national security concerns when it comes to chinese companies buying u.s. companiy ie

companies, but softbank is a japanese company. so why the issue here? because softbank uses network equipment from huawei, which is a chinese company. not only is it chinese, but a congressional report issued last year basically accused it of enabling spying on behalf of the chinese company and encouraged americans not to use their equipment. any huawei equipment used right now will have to be removed and replaced. derek heritage was on "closing bell" and suggested it was bad precedent for a government official to be inserted into a -- or a government-approved entity to be inserted into the board of a company. michelle, back to you. >> reaction now to this deal with huawei's u.s. spokesperson, william plumber. good to see you, sir. >> mr. plumber, obviously, your company is unhappy with the way this deal is being structured. what's your response to it, to begin with. and then we'll talk about it. >> well, you know, huawei is a $35 billion company doing

business in over 150 markets worldwide. and providing telecommunications equipment to the nationwide carriers and virtually every oecd company, connecting about one third of the world's population. it feels as if this remedy is not -- this remdy is not addressing the symptoms. the symptoms reflect a much broader challenge. >> what do you mean? >> well, the bottom line is is the cybersecurity concerns that are being expressed in the u.s. and elsewhere are very, very real. but all of the telecom venders, regardless of where they're headquartered, are global companies that rely on global supply chains, so they're all subject to global vulnerabilities. >> but this is not about supply chains. this is about espionage. this is, as senator schumer said, his concern was about the proximity of huawei, your

company, to the chinese government, and the potential influence it could exert and the accessibility that the chinese government would have to information should these sprint deals go through just without any conditions, they would have access to the backbone of sprint's network here in the united states. i mean, you can understand the optics that are the concern here for the u.s. government over national security issues, don't you? >> for those that are being intellectually honest, and this is well-understood in the industry, whether you're huawei or erickson or nokia siemens or a algtel lieu senath or cisco, you're all global companies, you're all doing business globally, you're all coding and sourcing globally, including in china. to the extent there are threats, they are common threats across the country. and suggestions otherwise are actually a detraction from the real challenge, which is, how do we raise the bar for everyone?

a solution that would pull one competitor out of the field of six major competitors will do absolutely nothing to make networks more secure. in fact, it makes them less secure by not applying common rules across the industry. >> so what would you like to see? how much of an impact do you think this new government report, which found chinese cyberspies gaining access to u.s. weapons systems, how much of an impact did that have on the sprint deal? >> i can't say. what i can say is there are two things going on here. we're seeing sort of a political derailment of focus on a very legitimate concern, which is cybersecurity. from an industry perspective, companies like huawei and our peers have an obligation to work to establish standards and disciplines that cover our operations and supply chains that raise the bar universally to ensure network security. but on another front,

governments have a responsibility to engage in dialogue through appropriate channels, to manage their own behavior. and it's with some, we are somewhat hardened to see that the president will be meeting with his chinese counterpart in the near future, and we hope that these concerns, which are outside of industry, can be addressed through the appropriate channels, without creating anti-competitive environments, such as the current remedies will do. >> so -- >> i get your defense when you mention the other multi-nationals that have access to chinese parts and they outsource and all of that. but we're not talking about companies that are domiciled in china, like huawei is. i mean, that is the main reason that you guys have been singled out. they're not singling out the ericksons, the algtels and other companies that have access to chinese parts and things,

because that's not where they're headquartered and domiciled. this is all about the optics and the potential for access the chinese government would have to what is a very sensitive electronics backbone here in the united states. and frankly, sir, if we are being intellectually honest about this, you're not answering our question about this. >> what conversations have you had with the committee on foreign investments, in the u.s., about this deal? that committee, which decides on the sprint deal? what's the conversation been like? >> whatway is not a party to that transaction, so we've had no conversations with the committee with respect to this transaction. but to the point made earlier, i think that, you know, whether or not a company has a headquarters in one country or another, in today's age, in the information communication technology industry, companies like huawei are global companies. we do 70% of our business outside of china. we work closely with partners, one third of the inputs that go

into our solutions, about $7 billion worth of purchases last year, are coming from american companies. we are a multi-national company that has a heritage, by virtue of our headquarters in china, we are no more or less secure than any of our peers. >> what relationship does your company have with the chinese government? >> huawei is a company that is doing business in the telecom industry in china, so we are regulated to the same way that any of our competitors are or the same that we're regulated by the federal communications commission in the u.s. >> do you have any government officials on your board? >> absolutely not. we are 100% employee owned. >> all right. mr. plumber, thank you for making your defense for your company. it's a very, very sticky issue and one that's not completely done yet. thanks for joining us today. >> thank you very much. >> and coming up on the program, we'll get reaction to those national security concerns when we talk with the ceo of huawei's rival, cisco's john chambers.

he's going to be up, coming up soon. >> look forward to that very much. still coming off the lows here. we were down 180 on the dow. now down 86 points with about 40 minutes left in today's trading. up next, apple ceo tim cook trying to reassure investors that the company has not lost its magic. >> i think we have several more game changers in us. >> but are investors buying the promise? we'll get that on apple, next. stay with us. how old is the oldest person you've known? we gave people a sticker and had them show us. we learned a lot of us have known someone who's lived well into their 90s. and that's a great thing. but even though we're living longer, one thing that hasn't changed: the official retirement age. ♪ the question is how do you make sure you have the money you need to enjoy all of these years. ♪ her long day of pick ups and drop offs begins with arthritis pain... and a choice.

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. welcome back. let's show you the markets as we approach this final stretch. 35 minutes before the closing bell sounds. we had been down about 180 points earlier. we are well off of the lows, but still down about 76 points on the dow jones industrial average, pulling back from yesterday's all-time high. volume, not so great, as you can see there. nasdaq and s&p 500, also weaker today, although both off of the worst levels as well, bill. >> well, apple's ceo, tim cook, made headlines last night when he said this. >> the same culture and largely the same people that brought you the iphone, that brought you the ipad mini, that brought the ipod, and some that even brought the mac are still there. the culture is all still there, and many of the people are there. and yeah, i think we have several more, several more game changers in us. >> that term "game changer," did it. with apple shares down about 16%

so far this year, are investors buying the notion that game changer products are just around the corner? let's start talking numbers on the technical side. it's rich ross, global technology strategist, and on the fundamental side, enis taner. good to see you both. thank you for joining us. rich, walk us through the chart. they have tried a comeback here after a lousy six months on apple. >> bill, i love this chart. look, technicians say a bottom is a process, not a price, nor a place. our analysis suggests that process is well underway. let's bring up that 12-month chart and i'll show you what i mean. you can see this well-defined downtrend from the september 2012 high, even as the market itself has pushed out to new highs. but what i love about this stock, first, the upside break from that well-defined down trend, but that classic reversal pattern, that head and shoulders bottom, i'm looking for a breakout above the neckline of that pattern at 466 to propel this stock higher and test that

200-day moving average around $530. i'm a buyer right here. next 10% move is up. >> enis, you know, the knock on apple has been evolutionary lately, not revolutionary. are you willing to buy the stock before you see the next game changer? >> i'm a little more cautious in the near term, but i think it's made an important long-term bottom. there's a lot of pros and cons here. on the pros side, the buyback of the institute is the largest in the whole stock market. it has a 3% dividend now, which is an attractive value. it's also a ten p.e. name, and earnings growth might eventually stabilize later this year. on the cons wi, though, there haven't been any game changer. samsung is eating their lunch, and lastly, the stock is down 15% this year. there's no immediate catalyst to get portfolio managers excited about it. i think 460 is is probably an area where it pulls back, 420 is

a bay area. >> bill, as far as i'm concerned, the only thing that's changed here at apple is perception. and that's where the market psychologists, the technician comes into play. i think this is a compelling opportunity here. you want to be a buyer. the market's forgotten about this stock. they've taken up microsoft, cisco, yahoo! apple is the big boy. this is the one you want to own. and it's 36% lower than where we were in september of last year. >> all right. got to go, guys. thank you for your thoughts on apple. appreciate it very much. and for more analysis of apple, you can check out the new online edition of "talking numbers." we have a home edition coming your way as well. you can find it with sully's picture there on cnbc. >> 30 minutes before the close on wall street. a market under pressure, but well off the lows. >> treasuries have been selling off lately. we've been at year highs for the yields there. so where is that money going? will that fuel another life of the bull market in equities? we'll talk about that, coming up. >> but first, why is cisco escalating a court fight with microsoft?

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welcome back. a down day on wall street,

reversing yesterday's gains. the dow was down 180 points. we're well off those lows right now. financials and technology have been leaders to the upside today. you've had utilities and telecom to the downside. right now, the dow down about 80 points. maria? >> bill, shares of cisco systems on a tear, gaining better than 45% over the past year and the world's largest maker of networking equipment is also on a shopping spree, announcing that its most recent in a string of acquisitions, just this morning, software company julie x, for over $100 million. >> joining us live from the all things "d" conference in california, john chambers along with our own jon fortt. jon fortt, take it away. >> thanks, bill. john, thanks for being here on the day of the acquisition of joe ll jolie. the i want to ask you about growth. you're projecting that data traffic will quadruple over five years.

tell me, how are you going to be able at cisco to capitalize on those trends, better than you did with mobile? because you've had some success with mobile, but apple, samsung, google have really made the money. are you going to be able to really even accelerate growth, now that you know that these trends are going to take place. >> so going nor reverse order, jon, mobile was probably our achilles heel 3 1/2 years ago. it's now our strength. we're the number one player in almost every aspect of the mobile market, whether it's service provider or wi-fi capability. and actually this last quarter was at 73% for us and it's got great margins. but to your point, we want to do things that enable where the new growth is going to occur. and whether it's apple or google or other players, the more loads on networks, the more storage required, the more moving of information around, the more new generation of technology, which is kind of mobile, the cloud, analytics and big data, that resets us up for the fourth generation of the internet, something we're calling the internet of everything, which we think we will be bigger than all

for the prior moves. >> okay. i know they've got a question back in the studio, but just to follow up real quick, a move like this, jolie with software, is that going to allow you to expand margins in the data center? you're selling software on top of your switches with a play like this. >> so the short answer to your question is yes. if you look at our acquisitions over the last 15 months, we've done 16 of them. so it does speak to our view about the global economy, slow but steady improvement being the most likely scenario. and we have been acquiring companies that are both software oriented and recurring revenue. the bad news about that, though, is that you get all the expenses day one and you get the profits over one, two, and three years out. it's kind of like an r&d investment, before you really start to turn that to the bottom line. your overall assumption is right. and it does speak to our view about where the market's going, as we move from being the number one communications company to our goal of being the number one i.t. company. >> thanks. bill and maria? >> and john, clearly investors

are buying into it. so i want to broaden out and talk about what's going on in the marketplace, and certainly the competition out there. i know that cisco representatives are in a european court today, challenging microsoft's purchase of skype. removing toward a monopoly once again? what concessions would you like to see in order for a deal to go through? >> well, if you watch, maria, every acquisition we've done over this last year as an example, is we do it with complete interoperability that's easy to use. we think that allows the internet to grow faster and it's what other companies ask of us when we ayear companies like stern or tanberg. so we're just asking other players to do the same type of thing and for europe to encourage that interoperability in a way that we all benefit. but it does speak to, we really don't compete, maria, about a specific competitor. we compete on market transitions. so our ability to win in the cloud, where we literally grew 70% this last quarter, where we win in wireless, where we win in

video has been balancing that communication business that has been flat the last quarter or two. i think it is that transition to i.t. companies that our investors are giving us credit for. >> what's monopolistic about the acquisition of skype by microsoft? and i'll re-ask maria's question, are there concessions you want to see there so it becomes more palatable, so do you just want the courts to nullify any deal for skype? >> absolutely not the second. all we want is interoperability. that's what microsoft and others have asked of us when we do acquisitions. and we think easy interoperability, not five or six clicks, because nobody will use it, but just the capability of any device to any content we think allows the internet to go, and we think it's also important for the accompanying vendors to allow that to occur. >> i want to ask about repatriation. tim cook last night said he wouldn't mind a tax reform that resulted in higher u.s. taxes for apple, but he wants to be able to bring that overseas cash home. that's a theme that you've been

hitting on for quite a while. do you still feel that way and do you think we're any closer to getting some sort of a deal along those lines, with this administration? >> well, if you watch, the quickest stimulus we could have is bringing back $1 trillion back over the u.s. every exporting company in the u.s. does that. if you bring it back, apply 10% of it to a national infrastructure fund to build highways, et cetera, both political parties ought to get together on that. i have been not just disappointed, but almost shocked that that compromise hasn't been able to come, when it's so important to create jobs in america. and our job growth has been anemic. we shouldn't kid ourselves. the tax system is broken, but if i was trying to stimulate the economy quickly, this would be the easiest lever to pull and it would generate revenues for the government to apply to other capabilities as well. >> you don't sound optimistic, though. do you think it's going to happen? >> no, i do not. unfortunately, we've been waiting fur years, so we're going to assume that we're investing our cash overseas, which means more acquisitions

overseas, which unfortunately means job growth overseas. i would much rather have it here in america. i'm a proud american company. that's different than most large high-tech companies. but the tax policy is making it very difficult. >> john, that's what we're hearing across the board from other ceos and other managers of business, within your sector, and by the way, not just within technology, but across the board in business. so as you think to reallocate your capital, and put your capital where it's treated best, one of the decisions you've made is to really focus on shareholder value. you've tripled or nearly tripled a dividend in the past year and a half. you've bought back stock. is this a new vision, are you planning to up this strategy? you know, a moment ago, i was talking about how the, in a low-rate world, companies today are paying shareholders first and putting earnings and revenue growth later. obviously, you're doing both, but tell us about the strategy around paying shareholders and

dividend increases. >> sure. we've committed to 50% of of our free cash flow, regardless where it's generated in the world, going to our shareholders. either in dividends or share repurchases. we clearly didn't start dividends without the commitment to increase those over time, which candidly, we will continue to do in the future. we're completely committed to that strategy. but to your point, your ability to generate cash flow is directly proportionate to your ability to generate earnings and top-line growth. companies who are really world class, we do all three. but key takeaway from shareholders, we are all over trying to do what's right to get you a great return by investing in cisco. we try to tell you what we're doing well and try to tell you where our exposures are as well. >> john, we're curious about your thoughts on the softbank acquisition of sprint and the conditions that the u.s. government is asking for, where they would veto this deal if they -- unless equipment made by huawei, for example, is taken out of the softbank acquisition

channel. i mean, are they overdoing this, are they being shortsighted, or is this a definite concern over national security when you're dealing with companies that the chinese government has access to? or are we being disingenuous about this whole thing? >> well, break your question into a couple of pieces. the first is that the sprint acquisition, softbank, will create a very good company, the head of soft bank, i've known for many years. he is very aggressive. he makes me look like bak in terms of his strategy. he's got the deep pockets that are going to be required within it. i think he understands what trade-offs he has to make, or he wouldn't have started down this path if he didn't intend to allow those trade-offs to occur. in terms of the overall interface to china, i think it's important that both of our business leaders and government leaders realize unless businesses in the u.s. and in china work closer together, we'll have a hard time pulling

ourselves off this global economy. i'm optimistic about the president of the u.s. meeting with the president of the china coming up here later, and i'll be over in china myself in about three weeks. >> we had an official from huawei just here a moment ago, and he says they're an unwitting victim in all of this. they're not a villain here, they just happen to be domiciled in china. and like many multi-national companies, you know, they have fingers in other countries as well. so, is that the answer to penalize a company like huawei in the name of national security here in the united states? >> well, bill, you already know, i'm not going to go there on your question, but let me address it a little bit different way. huawei is a competitor. we go very aggressive after our competitors on a global basis. we do that business to business. other players like zpe, la nova, and some of the tv makers in china look at it as partners. and so we tend to look at it by company, not specific to a country one way or the other. and i think that's way our country ought to look at it as

well. >> i want to ask about, i want to ask about m&a. you've done, i think it's 16 acquisitions in the past 15 months, is it? you said that that's a sign of your confidence in the economy, before we started talking. do you expect that pace to stay the same, pick up, slow down, over the next year? >> so our view, the good news and the bad news is the economy is just on a very slow, regular increase, and that's what we hear from our customers. if there's a surprise in southern europe or something in asia, that could, of course, change. we believe and we believed it for over a year, that our results in the enterprise business in the u.s. grew in double digits this quarter. same thing with our commercial results, grew at 13%. when you see that type of growth, off of zero percent a couple of quarters or off of 5% in commercial, it means the customers are spending slowly, but in the right direction. so we're cautiously optimistic about the economy the second half of the year. most of my customers are as well. we've got to see the u.s. come

out of this before europe will and before asia will. u.s. has to lead here. that's why you see so much attention in the global stock markets, et cetera, and our success in this country. >> what is the role for a cisco to get a handle on privacy and fix some of these issues that are increasingly becoming major for corporations and for individuals ner s in terms of t spying, in terms of the hacking. do you see anything that you could be doing to really move the needle on these issues? clearly, this is one of your growth ideas, right? >> yes. if you watch, our growth this last quarter came out of cloud, came out of mobility, came out of video. our growth looking out one, two, three years from now if we do our job right should come more out of collaboration and more out of security. i don't know how you defend in this environment, either from the consumer trust model, which is both privacy and security, or from a network or data center perspective, without intelligence, throughout the

architecture of the network. i think that's going to be the future. you will see us aggressive in terms of our moves in collaboration and aggressive in terms of our moves in security. and as many government leaders around the world, regardless of the form of government have told us, we're probably the one company that if we could really do it well to give them a secure environment for their future. so it's a good revenue opportunity for us. i think it's also very important for the i.t. industry, for our own growth, for consumers or for businesses or for governments to know that their environments in the data center over the network are very secure. we intend to be the leader there and we're going to stay tuned. >> john, good to have you on the program. thanks. >> thanks, john. >> maria, it's a pleasure. john, thank you. jon, as always, thank you. >> and jon fortt as well. okay, 15 minutes left in the trading session here. we've got the dow down 92 points. so a down wednesday. >> well, it's not tuesday, bill, so. several companies are spending advertising on facebook after their ads ran next to offensive posts. coming up, how can facebook fix the problem since they do not

control the posts, but need that ad revenue? we'll have the story as facebook's stock continues to disappoint. speaking of advertising, notice anything unusual about this jcpenney billboard? wait until it comes up here. here it comes. any moment now. this ran in -- oh, it was unusual. you'll find out why the ad of a teapot was brewing up trouble for this beleaguered retailer. look closely, when the time comes. an incredible story, later, on the "closing bell". >> now you have to come back. >> that's right. that's a tuesday! i want to make things more secure.

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welcome back. a hundred points lower on the dow jones industrial average. we are off the lows of the session, down almost 200 earlier. >> josh lipton has had a front row to this sell-off today, josh? >> bill, as you guys mentioned, we're in the red, though off the lows. the dow was down 179, now down about 101. the s&p, which had been down 20 now down about 10, it's 1,649. the prod gauge is down in four of the past five sessions. down about 2% from that intraday high last week. as we roll into the close here, in terms of sector performance, it's staples and utilities that are your laggards. in fact, dow utilities entering correction territory today, down about 10% from that april 30th enter day high. in terms of your leaders, those

would be financials and tech. in terms of the levels traders are watching down here, mark newton, gray wolf's technician. he's saying on the s&p 500, he's watching 1635. he closed below that, mark says, that would have to be taken seriously. but until then, he characterizes this market action as short-term choppiness. guys, back to you. >> thank you so much, josh. we're in the final stretch. ten minutes before the closing bell sounds for the day. a market down 95 point s on the dow. >> so should you be buying on dips like today? westwood holdings' mark freeman thinks so. find out where he's putting his money to work when we come back, after this. ♪ bonjour ♪ je t'adore ♪ c'est aujourd'hui ♪ ♪ et toujours

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welcome back. we're on the floor here. tough day for stocks, down 112 point observe the dow jones industrial average. but mark freeman from westwood's holding group says this might be an opportunity. >> mark joins us along with erin gibbs. so buying dips still? >> i think so. you've got to look past this volatility. and when you're going to a transition period like we are now, you should expect this. but ultimately, when you look past that, i think the fundamentals would still say the direction is still upward in that regard. >> what do you think about the fundamentals, erin, when you look at earnings and revenue growth. >> the revenue growth is clearly

still a little disappointing. but we're still expecting overall higher growth for the s&p. i wouldn't say that this dip isn't necessarily an opportunity to be buying. we're looking for sectors that are just undervalued consistently, like we've been saying, the financials and just technology stocks. so i don't necessarily say that you want to pile on more of those dividend-paying stocks in this dip. i would say go for the values. >> i think you have to be selective. as we go through this transition period, what works in the future is not going to be what's got us to this point. investors will have to adjust to that. >> what we keep hearing is, get out of the defensives and go to the cyclicals right now, anticipating growth in this economy. >> i'm not sure if it's purely the cyclicals. i think you have to be names that have exposure to growth. some of that's going to be in the cyclics, but some of it's going to be in the non-cyclical areas as well. it's not going to be as simple as saying, pick this sector or

this part of the market. it's going to become more stratified. >> i love the idea in a low-rate world, investors seem to be putting growth concerns aside. and they're just buying those companies that are going to pay them now. >> exactly. >> pay the dividend and do the buyback. is that long-term? i mean, is that sustainable? >> well, in my opinion, no, it's not. i think that is a part of the market that's a reflection of the environment that we have been in. but the whole question that we're now trying to deal with in terms of timing of when does the fed and their glide path ease out of the way, at some point those rates normalize and that part of the market will normalize also. >> and in fact, the ten-year yield is up to a year higher right now, at 215. >> and we're looking at a real bear market in bond. so sadly, major gains in those dividend paying stocks. >> how high the ten-year yield could go? >> that was my question. what about that 2.51 yield. does that make you feel like, okay, i've got to start moving money into fixed income? >> no.

>> no. >> i would like a little bit more than a 2.15% yield. remember, even if the ten-year goes to three, it's still trading at a ten-year of 33. >> thank you, both. >> thank you so much. come back soon. all right, coming back with the closing countdown in just a moment. >> and the s&p 500 still up 15% this year, despite today's setback. we'll hear from two top money managers who say there are still plenty of bargains if you look hard enough out there. we've got a special series on hunting for bargain stocks coming up on "closing bell." >> and we have the video now. this jcpenney billboard is starking a lot of controversy. can you tell why? take a close look. do you see any germany dictator from the 1940s in there? wait until you hear this incredible story, coming up. i have low testosterone. there, i said it.

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♪ [ male announcer ] when the world moves... futures move first. learn futures from experienced pros with dedicated chats and daily live webinars. and trade with papermoney to test-drive the market. ♪ all on thinkorswim. from td ameritrade. inside the two-minute mark. we just noticed something. this is yesterday's dow chart. up 218 points yesterday and then it moved south after that and gained 130 points. today, we were down 180 points at the low, kind of a mirror image, as we moved along. we haven't updated it up to the close here, but, you know, interesting, it was just a mirror image from yesterday. i want to take a look at the ten-yield year before we talk to matt cheslock.

as we've talked about, it has been going up a lot lately. we're at 216 right now. when we began the month, we were at 164. is that good or bad for stocks? i know you're skeptical of this market right now at these levels anyway? >> i've been skeptical for a while and i've been wrong. but it has been a great trading environment, at least for traders. if you can get a 218 point move to the opening yesterday and sell it the rest of the day, today, you can get bought back in. >> so volatility -- but what is going to cause a correction if it's going to happen? higher yields in the treasuries? >> it could be. people are talking about that. you get a crowded trade. we saw it last week. in a crowded trade does happen, and everyone wants to get out at the same time, there's no more buyers left. is it the ten-year? it could be the ten-year breaking. but i've heard you talking 2-5 before? maybe that's what does it. the fed will be part of it, but when it happens, it will happen quickly. >> you want to be standing by and letting it happen?

>> letting the volatility trade to you. >> that works for a lot of the traders on the floor here. thanks, matt, very much. we're going out, today's by about a half, down 180 on the low. stay tuned, much more to come on the second hour of the "closing bell" for this wednesday with maria bartiromo. 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. easy come, easy go. the market give back much of yesterday's big rally. look at how we're finishing the day on wall street, with a triple-digit decline on this wednesday. the dow tonight down 104 points, but well off of the lows of the afternoon. we had been down almost 200 points on the dow earlier today. the dow, nonetheless, finishing at 15,304, pulling back from yesterday's all-time high. the nasdaq also gave up some ground, about 12 points on the s&p 500, weaker by about 11.5.