>> sell off the gaining steam. 14,978. we are off of those lows of the day. >> saying the economy grew at a modest to moderate pace. only dallas reporting strong economic growth. one bright spot. real estate. a moderate to strong pace in all districts. bank lending, credit quality increased since the last report.

and cleveland reported declines in consumer and business loan delinquency rates. something the fed watches carefully. we had a bit of stuff on the sequester. some districts saw jobs decline through the government cut backs. in new york, employers said that employees were hard to find. i would say this report contradicts a little bit the weakness that we saw. it's more measure than 2% growth economy feels like we're saying rather than some of the concerns that were evident and taken from the economic reports the last several days. i'm just wondering with bond yields going up, is real estate

going to take a down shift from here? >> i think that's a concern. we don't know what interest rate the market can bear. the market is completely out of whack. its been ridiculously weak by any measure. if that comes back and is more normal. >> let's get right to the trading floor. rick, any reaction there? anything that might calm the markets down or keep on worrying about the tapering issue? >> dallas strong growth. real estate. moderate to strong pace. >> there is the dow jones

industrial average. the main thee sus of what is worrying the average. two big things. take a look at what is going on. causing some people to say maybe they're not going to be quite on track for the strong jobs growth they have been looking for. tapering is creating confusion in the market. >> the other thing, the problem is bond yields have been backing up for the next month. the flagship company and investment arm dropped 11% because of massive holdings in

bonds. >> richard fisher made a similar declaration on with us a couple of weeks ago. also said the secular bear run is over. aagree to a confidence of 70% that both of the gentlemen are correct. we see that the nikkei was down a lot. we see our stock market is down a lot and interest rates go down. where do you think the interest rate market would be if we saw 13,000 or 12,000? with all the oddities of what propels stocks under question, a big downdraft in stocks still

will bring a big updraft in buying and pushing yields. that's the first part. and the second issue is calling the bottom of rates, which i mostly agree with, still doesn't mean that the pace at which they increase is going to be anything similar to the next several weeks we saw. >> all very interesting. rick, as always, thank you very much. >> we are seeing that the rise in may has pushed mortgage rates up slightly above 4% and we have seen during that time period, four consecutive weeks of declines in mortgage

applications. not only for purchases but for refinancings as well. thoiz are three quarters of the mortgage applications. people are refinancing. they have got more mub in their pockets. they go out and spend it. now if they don't have the that to spend, that is another growth support that will not be with the economy. >> isn't it a possibility that this is a knee jerk reaction? we have been so used to the record low rates that people are seeing them go up and they are a little bit freaked out? a gradual rise in rates. it will not stop the housing recovery. >> well, it won't stop the housing recovery if the housing recovery is kind of pushed by additional employment. more people have more wealth. but with three quarters of the

refinancings of mortgage applications, that will be very interest rate sensitive. it probably already is stopping and that money does not get re-introduced to the economy. retail investors don't have an opportunity to take money out of their home and put it back into the economy. that, i think, is working in oppositi opposition. >> are there people really concerned about the economy? >> is it just about right? no. the economy is still growing below trend. i think we're in about the middle of the fifth inning. that's going to be important.

it's an economy that in grades get about a c or a c plus. probably move into a b minus by the end. can still be i think we're pretty due for that normal five to seven percent sell off in stocks. >> do you think we're in the middle of that right now? >> we very well could be and here is why. last september when we went through a 6-8 week, 6-7% sell off in stocks we saw that the s&p 500 was trading well above its 150 day moving average. the bond market there is some pressure on the high yield bond market.

coincided almost exactly what we have seen in the last two or three weeks. the high yield bond market spreads were quite tight. we have seen stocks weaken a little bit. we have not seen any type of correction or hick up. i would be looking at bindings. >> using what david just said about the bond market being the leading game, what do you think the bond market is telling the stock market right now in terms of where we're going to go? >> i think the sell off in terms of high yield securities, in terms of high quality securities

is saying that there is a great deal of concern that the fed is going to start tapering. since that, manufacturing, consumer spending and employment all have worse figures than what were available at the time of the publication of that book. i think that quantitative -- the tapering is not on the fed's agenda any time soon. >> okay. are concerns overdone? we will see. thank you very much for joining us, david. >> my pleasure. >> cramer is here and is going to way in on that. bringing the brands back from the dead?

ron: i'm never alone with scottrade. i can always call or stop by my local office. they're nearby and ready to help. so when i have questions, i can talk to someone who knows exactly how i trade. because i don't trade like everybody. i trade like me. that's why i'm with scottrade. announcer: scottrade- proud to be ranked "best overall client experience." everybody has different ideas, goals, appetite for risk. you can't say 'one size fits all'. it doesn't. that's crazy. we're all totally different. ishares core. etf building blocks for your personalized portfolio. find out why 9 out of 10 large professional investors choose ishares for their etfs. ishares by blackrock. call 1-800-ishares for a prospectus, which includes investment objectives, risks, charges and expenses. read and consider it carefully before investing. risk includes possible loss of principal.

>> 56%. that is how many american adults now have smart phones. that is up 35% from just three years ago. you have android owners. iphone owners 25% of the cell phone population.

and blackberry users, a sad 4%. the new phone hitting the u.s. today. seema is here. what do we think? >> i actually like it. i think it's nice to have the touch screen and the keyboard. a 3.1 inch screen. 8 mp camera. 13.5 hours of talk time. now a lot of recent channel checks suggest that the q10 has been seeing robust demand in canada.

google android ranked as a top smart phone. keep in mind blackberry has yet to launch its q10 in key markets including india. what ceo says on june 28th. analysts say that devices are seeing strong demand. >> thank you very much. >> technology and analysts. also with us about to weigh in with his two cents worth is herb greenburg. good to have you on the show today.

this is like new school meeting old school. you have the old keyboard meeting the touch screen. will this get new users to the blackberry? >> good news for blackberry shareholders. 76 million people still on this platform. there is a chance for them not to rotate away. other companies and manufactures have had in well over a year. >> i just want to go and take a look at live pictures coming out from the white house right now. the president is announcing that un ambassador is the national security advisor. rice, you might recall, had come under criticism for her actions during the ben ghazi crisis.

rice will not have to undergo confirmation. in the meantime, i'm going to go back to you. what do you think the stock of blackberry is going to do from here? it's already up about 15% year to date. >> if you look at the stock action just today it gives you a sense of the volatility. just today alone. all right? the short interest in this name is unbelievable. so there is a lot of negative investor entment that this is not going to be the company that will get that traction. >> i agree with you on the point that this will stem. .

last thing i want to do is go back to that old blackberry. i think many of us who made the switch point from blackberry to android to iphone, i will switch back maybe to an android? no matter what phone you try you will probably find things you like on it. beyond that, i think we're at that point where it is stemming the tide. >> you want to understand sell in versus sell through. they have got 500 carriers. we really ought to watch that sell through and make sure that consumers are buying the devices. >> do you think that blackberry is a sell. >> it has long been on the sidelines.

>> if colin says it and jeff says it, what am i going to sit here and say? there is a psychological here on that trade and it seems to be one of those that people think. will it do it? we will see. >> you were very interesting in what he was saying. boo that is critical. >> thanks a lot. speaking of stocks rising from the dead, take a look at j.c. penney. j.p. morgan just yesterday saying there are still signs of life.

>> they got important lifeline for their credit. they got 2.5 billion dollar loan. that should appease vendors and others who are worried. the question is the comps right now are going to look pretty easy. stocks fell so much i think that is still in question. >> i know you say when you have hit rock bottom, the only way is up. >> once these comps end, will it

just be muddling along? or will it see a sales increase? >> back to the future. >> they do a lot of on the ground research. when you have them, they are confirming who has been there a number of times. telling us from his field work around the country that they are used to going to the stores and people are in stores. i have said that people tried sears. you could see the down fall. they are not seeing it with sears. are they coming back because they like the stores? >> i'm going tell you, i have not been in. >> i cannot wait to go back to san diego, go to the fashion value mall where they had the worst exterior. it was so old and ugly. i also want to find out, make

sure it doesn't smell like a j.c. penney. there is just a smell. >> i get rid of that by piping something out. >> why do they do it? >> have you been to one of the stores recently? >> there is one not far from me in manhattan. i have been there. and the new stores do look good. they are also earning less income. it's a question of whether the new look is going bring them back or not. >> like i said, it has come back from where it has been. they have been on a new ad campaign. our social media team has been on a roll responding to every

customer saying anything about j.c. penney. they are definitely trying. >> okay. got to leave it there. as always we will see you in a second. the dough earlier on today was down below the 15,000 mark. it is still stuck there. but we are off. down by 199 points. up next, delivering three less risky ways to short the market. and then there is this. what in the world is going on here? the answer when we come back. [ dog barks ] i want to treat more dogs. ♪ our business needs more cases. [ male announcer ] where do you want to take your business? i need help selling art. [ male announcer ] from broadband to web hosting to mobile apps, small business solutions from at&t have the security you need to get you there.

call us. we can show you how at&t solutions can help you do what you do... even better. ♪ [ babies crying ] surprise -- your house was built on an ancient burial ground. [ ghosts moaning ] surprise -- your car needs a new transmission. [ coyote howls ] how about no more surprises? now you can get all the online trading tools you need without any surprise fees. ♪ it's not rocket science. it's just common sense. from td ameritrade.

vietnam in 1972. [ all ] fort benning, georgia in 1999. [ male announcer ] usaa auto insurance is often handed down from generation to generation. because it offers a superior level of protection and because usaa's commitment to serve military members,

veterans, and their families is without equal. begin your legacy, get an auto insurance quote. usaa. we know what it means to serve. >> i want to show you what's going on with the markets and the lows of the day. that is well below the 15,000 mark, guys. the dow, at this stage there is only one stop. we're going to keep an eye on what those markets are doing all the way to the close. >> but on this day in history, back in 1933, the united states

went off the gold standard. >> it is down big. >> of course we're seeing gold right now. >> the big move that we saw earlier, we are talking about the big move back in april. that became a buying opportunity for a lot of retail investors. this is where they manufacture the largest manufacturer in the world, actually. they make gold and silver coins, the most popular gold coin. this mint has actually sold $1.5

million worth of gold coins already. >> key an eye on the levels. we wanted to show you one of the under the radar ticker symbols. >> you know, you're back and you have got some maybe less risky ways to bet against a rising market? >> is there anything like a less risky way? the ultimate hedge against a markets collapse is to sell a portion of the stocks you own and hold old fashioned cash. invest in the few mutual funds. the etf that actually shorts stocks. we're talking about the fed rated bear fund. the grizzly short fund and the

ranger active bear etf. they like insurance. shows it best. the active bear is the one that is actually going up. you see the same results for the short fund. if the market takes off, these funds could easily get clobbered. then you have to decide if you want to buy as the price falls or like with any other investment. and unlike these three-time levered super charged etfs, those i mentioned do not use any leverage and that's important. as the tza itself warns, if the index attracts rises more than 33 33%. >> it's really risky. >> for any of those, they are

not for individuals. it has been interesting to watch over the past. >> unfortunately, they don't know quite what they're doing. they don't read the perspectives. >> you do own a couple of these. >> i own the hdge. i also own the grizzly short fund. as hedged in my ira against the stock portion of my ira. i have to make the same decisions as .

>> plus, kracramer is coming up. we will get his take on the sell-off and the most outrageous story of the day. [ kitt ] you know what's impressive? a talking car. but i'll tell you what impresses me. a talking train. this ge locomotive can tell you exactly where it is,

what it's carrying, while using less fuel. delivering whatever the world needs, when it needs it. ♪ after all, what's the point of talking if you don't have something important to say? ♪ a lot can happen in a second. with fidelity's guaranteed one-second trade execution, we route your order to up to 75 market centers to look for the best possible price -- maybe even better than you expected. it's all part of our goal to execute your trade in one second. i'm derrick chan of fidelity investments. our one-second trade execution is one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open an account.

>> and now in the red. i have got john lipton here with me. you know what was interesting? we have got the beige book come out. it was not perfect. things are moderately modestly improving. you wouldn't call it a negative report. why is the market moving down again from there.

fraders talk about maybe the central breakers or policymakers. i think bhen you listen, he talked about the economy, some guys say we will up 14%. >> is there a little bit of nerves? >> okay. let's get the street talk right now.

>> you look at the home builders. weakening. itb. now incorrection territory. >> down about 10% or more. we have got aig and it is saying something quite interesting. >> down a huge headline. the chinese group buying the plain leasing business. i was talking to the morning star. the bigger point here is that aig is continuing the broader strategy. >> okay. >> and we have got bed bath and beyond. >> finally a little green on your screen. they are fans and range into a buy. they say listen, it is valued around 11 times. upside is $82. >> we brought this in.

>> this is maybe something people have not heard of. mattress firm. big name investors involved here. >> a very down day today. we have got it. >> likely hamper 2013 sales. they take their price targets down to 7 bucks. >> thanks always for stepping in. >> the average joe just does not stand a chance. quite a lot of us here all fired up. stay on your couch.

♪ ♪ ♪ ♪ ♪

♪ your chance to rise and shine. with centurylink as your trusted technology partner, you can do just that. with our visionary cloud infrastructure, global broadband network and custom communications solutions, your business is more reliable - secure - agile. and with responsive, dedicated support, we help you shine every day of the week. i got this. [thinking] is it that time? the son picks up the check?

[thinking] i'm still working. he's retired. i hope he's saving. i hope he saved enough. who matters most to you says the most about you. at massmutual we're owned by our policyowners, and they matter most to us. whether you're just starting your 401(k) or you are ready for retirement, we'll help you get there. >> we have breaking news coming into cnbc. a controversial plan to allow small knives, backs, and golf clubs on airplanes.

it has drawn serious opposition from many who said it would place passengers and crews at risk. this is causing quite an outrage. >> on monday the ism manufacturing number which moves markets every month was ined a ver tantly released to their high frequency trading hedge fund client. that data went out early, but that is plenty of time to trade on the data and make some money. take a look at the stock that was provided to us. what you will see there is on the right hand side, that arrow shows you when this data was scheduled to go out at 10:00 on the dot.

>> it moved in about 369 individual stocks. let me bring you tompson reuteres statement on this. as close as possible to the official time of 10:00 a.m. eastern. and 15 milliseconds might sound like a small amount of time but that is faster than the human eye. about 28 million dollars changed hands during that period of time and that we saw the downward move. guys, a big move there.

>> absolutely. thank you very much for the story. i want to get reaction now. what do you think about this? >> it feels like the releases are having talks these days. >> the journalism is going to bring it. >> mom and pops got the information ahead of the hedge fund. >> that's what is really outrageous. it is not so much that someone has the hedge fund. it's always the biggest commission generator and the guy who has the most money. these are the two classes that we're all tired of. maybe somebody needs to be sanctioned for it. everything is done and it's just

a big mistake. >> shouldn't there be a penalty? shouldn't someone say no one can have -- let's have a second delay. no one is ever going to do that. the ceos are back. we never seem to ever give the regular person a break. >> how can we rectify it? can we nullify those trades? >> that would be great but they wouldn't know why the utility trade. we are dumb enough to use market orders. >> we have to have an investigation into whether it is good to have high frequency trading and it has to be done by mutual parties who literally are not able to be lobbied.

the reason why i think it is important is not that i want to sanction anybody. i want people to feel that the markets are not rigged. i feel like oh, it's rigged. that's what people think. that's why people don't talk about the stock market. they don't want to invest in it. it feels rigged. >> we have been talking and waving our hands in the air about high frequency trading for years and yet nothing is being done about it. what is being talked about over there in washington? >> the sec has been looking into high frequency trading for a long time. there is no allegation here that anybody did anything wrong or improper or illegal. but the real question that this comes down to is in this market where this technology is so fast, the question is when is information actually released? what counts as early released and what counts as late released. if you have a system where some

people get the information by paying for it, a high subscription fee, is that fundamentally fair or not? that's the question that people are going to have to ask themselves when they look at all of the data releases. they have been going, bending over backwards to try to prevent difference classes. now we're seeing it with ism, which is a non-government entity. and a lot of the entities are struggling with how to define when information is actually public. >> we do know this. the government has a stance. the stance set up. said look, we want fair disclosure. just get rid of this. just accept it. if we're going to keep having it, like oh, you know, let's just get rid of that.

at least stop. >> exactly kept all of the retail investors from getting back in. talking with the markets. we're down and we're low to the day where we are down 225 points or there about. now we're still down and some people are saying could this be the start of a bigger correction? >> i don't like the market. i have been saying that for this show. ever since interest rates spiked up 60 basis points overnight. >> we had a lot of big runs. never want to fall into doing that. we're not at a level where we're really oversold yet. maybe it is today. there is a lot of good things that are happening. but we need to settle back. we need them to stabilize.

i'm working on a piece with one of my friends about the bond market equivalent markets and how they are still not right. >> still too early to buy. >> one of the things that i like to do is health care payments is a business that is -- that knows no bounds. i have been trying to follow this. if we can get medicare under control and get hostile spending under control then we will solve the budget deficit. >> $8,000 and in the midwest is 1,000? we have got to find ways to benchmark that stuff and stop it. >> the deficit is coming down. we can stop this problem. >> we certainly can. we have breaking news. kate, what's happening? >> pre-trial conference in the

alleged insider trading case of the former sac trader. that is tentative at this point. the lawyer was actually looking for more time. at the moment it looks like he will go to trial november 4 and as well there is a notion that the prosecutors in the case may seek what is known as a superceding indictment. hard to tell defense lawyers tell me, as to whether it will be tougher or lighter charges against him. it could go either way. a couple of new developments. we will keep you abreast of any new details. >> thank you very much. still ahead, why amazon may soon be asking paper or plastic. plus the most amazing piece of vid vid videoyou will see today. i guarantee it. >> time now for today's return on retirement. capitol hill is king of the

hill. the retirement system pays more than 200 former congressmen nearly $40,000 a year after an average of just 16 years of service. research institute. wait until you hear the spread between the contribution differences between government and private pension next. [ female announcer ] there's one thing

dave's always wanted to do when he retires -- keep working, but for himself. so as his financial advisor, i took a look at everything he has. the 401(k). insurance policies. even money he's invested elsewhere. we're building a retirement plan to help him launch a second career. dave's flight school. go dave. when people talk, great things can happen. so start a conversation with an advisor who's fully invested in you. wells fargo advisors. together we'll go far.

back now with today's return on retirement. some pretty shocking findings from a new retirement survey. out of those who shared the info, nearly six in ten say the value of all their savings and investments, not including home values and pension plans, is less than $25,000. and that includes 28% who have less than $1,000 saved. what's holding americans from saving more? debt. more than half claim to have a problem with their debt levels. check out "closing bell" today beginning at 3:00 p.m. eastern for retirement portfolio advice for all ages and retirement.cnbc.com for more tips on how to prepare for your

golden years. well, amazon reportedly making a broader push to get into the online grocery game. this sounds exciting. this could really shake things up. >> it could be exciting for some people in certain areas. grocery -- sorry, $565 billion business in the u.s. i mean, everybody eats every day, more than once. and amazon appears to be getting really aggressive in this national food fight. over the last 24 hours, l.a. was stealthily added as the second delivery area for amazon's grocery delivery service, amazon fresh. they've been testing amazon fresh in its home city of seattle and the surrounding suburbs for at least five years, but amazon reportedly has plans to expand to san francisco later this year and 40 more areas in 2014. although the company didn't return our request for comment and hasn't confirmed the reports. >> the question here is what impact could this of the grocers. joining us now, kate wen.

so should normal grocers be concerned a about this move? >> absolutely. this is another sign of pressure for the traditional grocers, which for the past number of years have been seeing pressure on the high end from companies like whole foods and on the low end, from walmart, target, the dollar stores that have been getting more into grocery themselves and putting more pressure on price. amazon has had the benefit of working on this for the past six years. they have their own fleet of trucks in seattle. this is the only business that they have, where they actually operate their own fleet of trucks. and most importantly, they have had to try to convince consumers that they want to buy groceries from amazon. i think that's the biggest hurdle they're going to face, if you can't pick out your own apple or your own head of lettuce, you know, do you trust the quality that amazon provides? >> this is the thing, right. you've got amazon trying to get into this game, walmart trying to expand into this game and various other players are looking at expanding their networks as well.

how do you get someone like me, who likes to squeeze the peaches, who likes to pick out the lettuce and choose the ones that don't look so manniky, howo you get me online? >> one of the benefits here, in seattle, this food truck is going around your neighborhood and as you see more and more of these going by, you see people's groceries on the doorstep from amazon, you think, hey, my neighbor is doing this and maybe i should try it as well. >> i apologize, i hate busting in on you, but we have some breaking news right now on the irs. eamon javers, what are you hearing? >> hi, mandy. nbc news is now reporting that the irs has put two senior staffers on administrative leave for accepting free food in violation of irs regulations. nbc news reporting that the irs has informed multiple congressional staffers that two senior members of the team now in charge of implementing the affordable care act have been removed from their positions. the alleged violations occurred in 2010, nbc is reporting, at a conference where the two irs

officials accepted $1,100 in free food and, quote, other items. so the news here, mandy, two now placed on administrative leave for accepting about $1,000 worth of free food. and that violates irs regulations. and of course, this comes in the wake of reports that the irs had been engaged in the excessive spending at a conference in anaheim, california, in which irs sent thousands of employees out to california, staying in hotels and running up huge bills. that's been very controversial up on capitol hill. mandy? >> it's going from bad to worse. thank you very much for that latest development on the irs, eamon javers. we're taking a quick break. but first, breaking news out of florida, where lottery officials are announcing a winner to last month's massive $590 million powerball jackpot. what we do know is that she's an 84-year-old woman. no, that's not her. and she will be taking the lump sum payout of $370 million.

just by talking to a helmet. it grabbed the patient's record before we even picked him up. it found out the doctor we needed was at st. anne's. wiggle your toes. [ driver ] and it got his okay on treatment from miles away. it even pulled strings with the stoplights.

my ambulance talks with smoke alarms and pilots and stadiums. but, of course, it's a good listener too. [ female announcer ] today cisco is connecting the internet of everything. so everything works like never before. [ female announcer ] today cisco is connecting the internet of everything. because what you dont know can hurt you.urance, what if you didn't know that it's smart to replace washing-machine hoses every five years? what if you didn't know that you might need extra coverage for more expensive items? and what if you didn't know that teen drivers are four times more likely to get into an accident? 'sup the more you know, the better you can plan for what's ahead. talk to farmers and get smarter about your insurance. ♪ we are farmers bum - pa - dum, bum - bum - bum -bum ♪ [ kitt ] you know what's impressive?

a talking car. but i'll tell you what impresses me. a talking train. this ge locomotive can tell you exactly where it is, what it's carrying, while using less fuel. delivering whatever the world needs, when it needs it. ♪ after all, what's the point of talking if you don't have something important to say? ♪ i want to leave you with this, a man texting on the hood of a car at 65 miles per hour. why? i have no idea, but have a great day. and "closing bell" is next.