>> well, it really depends on what kind of investment. longer-term investment, it's going to have to adjust to a shifting business environment as some lobbyists trying to keep the distance. turkey's very high current account deficit is definitely a concern. >> okay. >> yeah. >> riva, unfortunately, we have to leave it there. thank you very much for joining us. thank you for watching "street signs." >> "closing bell" is next. hi, everybody. welcome to the "closing bell." coming to you today from washington, d.c., we are going to talk about the issues of the day here in washington, as well as take a look at the markets. i'm maria bartroma, and, bill, what a wild ride. >> so many cross-currents going on here. it started out ugly this morning, and one of the problems was higher interest rates. the yield on the 10-year note was up to 228 this morning,

giving some competition to the stock market, and it was down 150 points on the dow. then, things came back, and now we have this violence erupting in istanbul, at taksim square, and stocks and bonds running in lockstep since that time. we have a lot to cover for you over the next crazy hour of trading. >> we sure do. and from the continuing irs scandal to the unfolding nsa scandal, the scandals continue happening in washington. we are here covering that. the security firm booz allen still seeing its stock getting hit today on the fallout of its employees leaking monitors, nearly all electronic communications with american citizens. what a story, booz allen down 1.30% today. >> we'll bring you the latest on the violence as the clash between protesters and police continues in istanbul. we'll have updates over the next couple of hours. it is 10:00 there right now. the fear is it will get more

violent as they go into the evening. but we'll see. it's just been a very, very unpredictable day in istanbul, maria. >> yeah, we'll take you live to turkey coming up. let's check where we stand as we approach the final stretch on wall street. the dow jones industrials average had been down 150 points earlier. up in the double digits, and then back down once again. we're coming off of what appeared to be an afternoon low, but we're still looking at declines here for the dow, down about 50 points, .30%. and the nasdaq has a volatile sharp pattern, bouncing off the afternoon lows a half hour ago, and now showing a decline, but up 20 points. and the s&p 500 under pressure. we'll preview what may happen in japan overnight. we'll be watching that opening to see what happens tomorrow. the standard & poor's down. let's talk with michael is here with me at the new york stock exchange.

>> right here. >> how about that? >> and greg, cnbc contributor from "the economist," mark is on the floor here with us, and our own rick santelli in chicago. michael, when we were discussing before we came on the air here the situation in istanbul, the violence that has happened there, the decline we saw in our markets as a result, what was the first thing you said to me? you would buy this market. >> i think i would buy this dip. i don't see anything tremendously strategic to undermine banking. certainly we don't like the lack of confidence. we don't like the violence. if i'm going to be a complete and pure capitalist here, i think i would step in and buy. i don't see anything changing financially for the world. >> mark otto, do you see? did you see a change in the order flow as the violence erupted, when you started to see the pictures out of taksim square? >> i think one thing that's notable is the fact that today in particular we see defensive plays are outperforming other

sectors selling off. like technology, which has been really hot lately. so that's something i want to keep an eye on going forward. if we see that sector rotation back into the defensive plays, it could actually be a precursor to a momentum shift. >> of course, the markets having one eye on what's going on in istanbul and the other eye on what's going on with interest rates. the 10-year moving all over today, and the stock market seems to be tracking where the 10-year yield is, almost identical. gr greg, let's talk about that. why is the market so worried when it hits 2.2%? >> it's not the story, the signs of improvement in the economy and the uneasy drip of liquidity from the fed. we have signs from the fed that will be ratified at next week's meeting that they'll turn that drip off. one of the very important sources of valuation support is going away. it's the starting of 1994, maria, when we had a devastatingly bad year in the bond market. and the stock market struggled

to make advances that year. but the important thing to remember is that it did not ultimately have a bear market. once interest rates settled at the new equilibrium level, it was off to the races. >> why do you think this market in the u.s. is tracking what happens in japan so exact? now we're getting talk about this market is contingent on what happens with the japanese yen and the dollar. >> the fundamentals are quite different. as we were talking about a moment ago, japan at the beginning of a quantitative easing cycle. what the two have in common is that the policies of both have fed a big carry trade in the market. and both benefited, whether was emerging stocks, but all of them are getting hit. >> rick santelli, early on, stocks and interests rates were at odds with each other. once we saw the pictures out of istanbul, they started moving in lockstep. was there a definite change in the tone of the market today? >> listen, what the images from

intan buell are depressing, but truly, i haven't been able to connect the dots that it's had any significant impact on the marketplace. and i think the most significant thing i've seen is that the dow jones industrials average for the first time in a long time had a sell strength mentality by getting basically right to unchange, and then selling off in the triple digits again. and i totally take exception to mr. ipp, and believe me he's one of the best fed watchers out there, it's nothing like 1994! because the interest rate market in 1994 was actually a market! it's not a market anymore! it's a managed part of the economy. it's totally different. >> greg? >> okay. history doesn't repeat, i'll look and see, but it does sometimes rhyme. what you have common in both periods, as i was saying, a long period of easy money. at the time, the fed was maintaining what we thought at the time was easy money. we later now know we hadn't seen nothing yet. >> easy money's not buying 85 million a month, greg! 85 million a month!

>> billion. >> that's more than easy money. >> well, what you see going on in the market is whatever the market -- whatever the fed seems inclined to do, it's less than the market thought a month ago. it is now a getting used to the idea that the fed's ultimate total buying will be less than they thought. that's why it's so choppy as everybody -- >> we're getting this volatility and there isn't one speck of proof that they'll do anything with a taper! this is just on talk! let me add to what happens when they really do it! >> yeah, but setting themselves up for that. mark otto, you're watching the money flows on the floor there. give us your sense of what happens when, in fact, we do see evidence of the federal reserve actually lowering that $85 billion, buying fewer lower numbers in terms of bonds? does this market take a hit, or are we looking at all of the anticipation of getting ahead of it? >> well, i think for now we are looking at the indication as rick has signaled. i think going forward, though, we are going to be cognizant of

sector rotation back into defensive plays. i think that will be a precursor if there is a momentum shift in the market in reaction to what the fed policy is doing. >> last word to michael. do you see a momentum shift? as rick pointed out, once we go back to the neutral, it headed south. do we see sell on the strength mentality? >> i don't see it yet. i don't see the bears have been able to take control yet. we've seen still a lot of supply out there. bulls, who are buying these dips. they keep running it back up to even. i think we're clearly due for a pullback, and i think maria, to answer your question, yes, when the fed actually does it -- and i don't think they're going to do it, and i think wall street is waiting to see if they will blink -- when they actually do it and they actually pull back a little bit, you'll see more of a market like this without the buying on the strength. or the dips, sorry. >> all right. leave it there. thank you, everybody. >> thank you. >> thank you. >> appreciate it. >> the three big companies holding important shareholder meetings today. we look at how the stocks have

been moving so far. josh? >> bill, starting with lululemon saying its ceo christine day will step down, and this is after the recall of the yoga pants too see-through. that stock down in today's session. and news corp., approving charter amendments related to the separation of its businesses. rupert murdock said they're on track to complete the separation. the stock edging lower, still up 23% so far this year. and finally, facebook making some news. facebook ceo's mark zuckerberg acknowledging that the stock performance has been disappointing, but does not think the fundamental strategy here is wrong. also saying the amount of likes and comments has gone up per person, about 50% over the last year. that stock down about .9% right now. maria, back to you. >> all right, josh, thank you so much. we will be hearing from two facebook shareholders in the next hour, that the stock is so well below the ipo price of $38 from more of a year ago, we'll

hear firsthand how patient they have been and how willing they are to be with mark zuckerberg. and to give you an update on the violence in turkey. mary? >> maria, using water cannons and tear gas, police have cleared thousands of protesters in istanbul's taksim square. the protests spread nationwide and turned into a protest against what critics claim is -- against the authoritarian, she said, government of prime minister, elected three times. he is greatly credited with improving turkey's economy, however opponents maintain he's pushing a conservative religious agenda, something he denies and is also squashing attempts to make a more inclusive government. certainly what some people are calling the excessive use of force by police will add fuel, or provide fuel for those

critics. bill, back to you. >> all right, mary, thank you very much. we'll be checking back with mary to get the latest out of istanbul through the final hour, usually there's a rhythm to a trading day, and this one is hard -- this one's a tough one to dance to, as we used to say on "american band stand." the dow is down 60 points. it was down 150 on the open this morning. and it's still looking for its fitting with 50 minutes left. >> we'll wait to get those in-balance indications from you, bill, to see how the market will close. >> -- to the downside. >> okay, great. coming up, the always outspoken charlie rangle speaking out against the state of our privacy, and what information should and should not be protected. he's also had a few choice words for the irs on that other scandal. we'll speak to him about both of those. first, the console wars are far from over and big-time stocks could be poised to take a hit. it's the sony playstation versus the microsoft xbox in a price

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welcome back. another volatile day for the markets. the dow was down 152 points on the open this morning. that was when the 10-year yield was up around 2.28. 2.28%. things have reversed themselves in the meantime. the dow now down just 61 points, and the yield on that 10-year has come down almost 10 basis points in just one session. we're at 2.19 right now. we'll watch the volatility as we head into the close here with about 45 minutes left. maria? >> all right, bill, meanwhile, sony drawing a clear line in the sand between its new playstation 4 and the rival microsoft new xbox one. jon fortt with the story. jon? >> reporter: maria, the question is, how big is the pie that they're fighting over? is this the console's last stand? sony and microsoft have gone quite a few years without

brand-new consoles. the stocks have been struggling over the eight years that it's been. and the mobile business in gaming is really the part that's growing. take a look at consoles slow outlook. it looks set to grow 3.5% annually over the next three years or so, according to new zoom. online gaming up better than 10% and the tablet up 47.6% per year. now, the electronic arts, the gaming business, has gone profitable. they -- businesses like them are looking for a pop from the next generation of consoles, and jack tretton of sony said don't count out consoles just yet in his first cnbc interview with me this morning. take a listen. >> i still think the console is the ultimate gaming experience, and it opens the ecosystem with smartphones and tablets. people tend to migrate up the food chain to the dedicated console. so i think the console will outlast my career. it's not going anywhere anytime soon. >> reporter: the wild card here, of course, is what are apple and

amazon going to do in the fall? we're expecting new tablets from both, maybe even a tv from apple, that could take share away from the traditional gaming players. guys, back to you. >> all right, jon fortt, thank you very much. we're asking whether either of these stocks is a good video game play right now in the markets. microsoft versus sony in today's "talking numbers" on the technical side with rich ross, and on the fundamental side steve cortese, the founder of vera cruz mjm. rich, which stock? >> i tell you, bill, there is old technology like microsoft and then jurassic technology like sony. i'm a big buyer of the sony chart. when you pull up the stock chart, we take it back a couple of years. you see the stock is taking out a very well-defined downtrend that takes us back to 2011. we also break above the 200-day moving average. now, we run into resistance at the 22 level, but we've pulled back within this well-defined trend channel. we think this is a compelling buying opportunity. we think we take out that

resistance and we trade $26. you want to be a buyer right here. >> okay. steve, both of the companies are too big to be pure plays in video gaming, but do you like their strategies enough to buy them for that reason? >> well, bill, i do like microsoft quite a lot. i have spoken about it on this show recently, and so far it's worked well. i disagree with rich. i do not like sony at all here. i hesitate to talk too much about videogames, because i think when i do, i'm too old, and end up sounding like mr. cleaver talking about the young kids. when i do talk to young people, they say xbox has a better experience, because the controllers are so much better. and also exclusives on some of the most popular games. i think it has advantages in gaming. the sony story is not about gaming anyway. this is a macro story about japan. so sony has been a terrible stock for a very long time. it's done well recently only because of what's going on in the japanese markets, specifically dollar-yen. the problem is in the last week or so, that's reversed

violently, and with dollar-yen well below 100, i think they'll run into the same macr macro headwinds plaguing it for years. >> bill, keep in mind, this is a $20 billion company in terms of sony versus $290 billion for microsoft. you can move the needle here. already we're hearing that the playstation console is superior. far less onerous, $100 cheaper. you can trade and share games at your leisure, unlike microsoft. so i think playstation, the clear winner of hearts and minds in the early going. a superior stock chart with significant upside. microsoft hasn't taken out the 38 level in 13 years. >> rich, i think over the long haul you're going to be much better placed in the innovation of microsoft. even if you're right about gaming, that's not a big enough component of either company to move the needle. in terms of moving the needle, it will be so difficult for sony which primarily operates in japan, and that's a country in tumult still, and we've seen violent reversal, the nikkei from 16,000 to 13,000 in just the last few weeks.

so i think the headwinds of the japanese macro difficulties persist. >> well, still the world's third-largest economy. let's not sleep on japan. they've got these -- in the right direction. >> no, they don't, rich. it is for now. it's also the only country in the world that sells more adult diapers than baby diapers. so things are getting worse for japan, not better. the demographics are too strong to fight. >> i don't know where this is going, but we'll end it there. thank you both. rich ross, ward cleaver, thank you. >> a good place to put that to an end, bill. we're in the final stretch of trading for the day. it's been a volatile day for the market. the dow jones industrials average down now about 67 points with 40 minutes before the close. >> stocks down, bonds are down. commodities are down. where's all the money going right now? the answer to that mystery we have in a few minutes here. and then, an ongoing irs and nsa scandal consuming washington. does that mean tax reform is dead? what about the debt ceiling that looms? this fall? we'll talk with congressman charles rangel, joining me next.

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another volatile day for the markets. any whiplash yet? >> yes, and more damage to the

market than just down 60 points. it's 5-to-1, declining to advancing stocks, and it's really the whiplash reaction in the stocks and bonds. it's a difficult market to trade in. a lot of frustrated traders. so we're getting this choppy trading. and what's going on, it's all about interest rates. everyone is trying to find the right level for interest rates. nobody knows what it is. what's the impact of less central bank support? we don't know, because we don't know when it will happen and what the right level should be. that's the confusion. we do know it's affecting global markets. look what's going on since may 22nd. since mr. bernanke gave his testimony and the minutes came out, the s&p was at a historic high that day, down 2.5%. look at high-yield bonds, long-term treasury, corporate bonds, twice the decline that the stock market has. in other words, interest rates have risen. these higher rates are hurting not just the u.s., but emerging markets are having a very tough time. i know we're all riveted by the pictures in turkey, but, folks, we've had problems with emerging

markets for several weeks now, since may 22nd. look, philippines, thailand, india, i'm putting up some examples here. others are even worse in emerging markets. the other problem is over in japan. the yen-carried trade had hugh leverage. it's not about the fact the yen has been strengthening. today, you see it's strengthening. it's the leverage has been enormous. as they unwind the trade, there's collateral damage all over the place. put it up for the last month. there you see the yen versus dub the dollar versus the yen. as it goes down, the yen is strengthening, an that's what's causing a lot of the problem. that's a decline of about 8%, 9%, maria. and that is a lot when you have a lot of leverage behind it as well. that's really the source of a lot of the problems. back to you. >> bob, i'm glad you mentioned the emerging markets. that is where you're seeing outflows. interesting story there, because this was the hope for so many investors. thank you, bob pisani, and from wall street's wild swings to the scandals in washington, still more questions in the internal

revenue service targeting scandal, and now the incredible nsa story and the leak from fugitive edward snowden, a former national security agency contractor. i'm joined exclusively right now by congressman charlie rangel, a member of the powerful house ways & means committee. congressman, welcome back to the "closing bell." >> good to be with you. >> i know the irs scandal has taken a bit of a backseat to now the nsa story. it's not been resolved yet. you've been quite critical of the agency. where do we stand? give us an update. >> well, i think the issue has not yet to be resolved. i don't think it's a question of -- it's a question really of the constitutional right of the press as well as national security. and i don't think we need a third party in this situation -- republicans and democrats on the intelligence committee all agreed that the president and national security was abiding by the law, and obviously, the spirit of the law. i don't think individuals have the right to determine what's best for the country just

because they mean well. >> right. well, we're talking about two different things here. you're really talking about the nsa situation. >> yes. >> what i mentioned to you is the irs scandal. where do we stand on that? that's where you have been critical. >> well, listen, someone has made mistakes. i don't think it's of a national interest what they did. the problem there is with the law itself. and i don't know why people aren't concentrated on it. these laws are not really meant to deal with campaigns. it's meant to deal with charities and good services -- >> you can't say this is not national interest. people are watching the irs -- >> they're watching -- >> -- don't agree with their politics. >> i think it's wrong, and it can be corrected. this is not what americans are going to sleep worried about tonight. they're worried about jobs, the economy, their healthcare and issues like that. and because the majority in the house don't have any programs, then the whole darn thing is

about scandal, scandal, scandal. >> -- people worried about government is watching and targeting groups just because they may disagree with them? you don't think people are worried about that as well at this point? >> i think people believe and rightly so it's the wrong thing to do. >> yeah. >> but does it reach the point that they're worried about it? no. you know, in a sense, the irs had no right to change that statute. if they had let the thing stay the way congress had intended it, we would not. why don't we come in and talk about changing the laws as a result of people abusing the law? it was abused. and just because it was one party and the other doesn't make it the right thing to do. >> do we need an independent counsel to look at this? do we need to make america feel comfortable that, in fact, these groups are not being targeted just because they're different politics than the current administration? do we need an independent counsel to see what went on here? >> i think you used the magic

word. in order to make people feel confident. yes. when people lose confidence in the tax receivers in a voluntary system, it has a terrible negative impact that somebody's getting away with something. there's so many holes and inequities in the tax code. yes, people have to feel confident that the people that's administrating it is doing the right thing. >> right. >> so, yes, we have to find someone that the people trust to say to do it. but really, we should make an example out of anybody who took it upon their own to determine the political qualifications to enjoy a tax benefit. >> well, was it right for lois lerner to take the fifth? >> a former federal prosecutor, taking the fifth is the american right to do under the constitution. do people who take it have a stigma in having to be defensive, you bet your life they do.

but it's a constitutional right to do, but people want to know. and she has a public service job. people look at people in public service, they have a higher standard, in my opinion, to respond. and she did. >> yeah. let me move on to the nsa story. we just mentioned edward snowden. is he a traitor or a hero? in your view? >> i think he's irresponsible, and i don't see how you can make him a hero. we have laws that have to be abided. no one can individually decide what's good for the country. and so i -- >> should he be prosecuted? >> well, that depends on the evidence that are there. clearly he broke the law and we don't see any reason why he can determine how far we have to go in national security. i mentioned how people go to sleep at night. if they go to sleep at night not worrying about being cutted, not worried about bombs being dropped, as so many people all over the world do, somebody is

doing a pretty good job. >> with all of this sucking oxygen out of the powers that be in washington, what happens about -- what happens to the other issues that we talk so much about? tax reform, the debt ceiling debate on the horizon. is that going to be another fight? how are we going to attack the big economic issues of the day? you say people are staying up because of jobs security, and insecurity. how does all of that get resolved when we have the irs scandal, targeting scandal, the nsa scandal. what do you think is happening at this point in terms of the issues that people want addressed? >> when people like you just get fed up. what we're doing is totally embarrassing. not only to our country but to the people that have to make investments and plan for the future. there's absolutely no excuse not to give the president of the united states of america the right to set a debt ceiling. this is for debts that have already been acquired. but they're using it for political purposes, and it is totally wrong. and to do this at a time when the private sector is struggling and moving forward in a positive

way, and their government is not doing a thing about the bridges, our tunnels, our airports, which makes us look like a second-class country, it is wrong. and if americans would just have the -- the private sector, the ceos, the religious communities say we sent you guys in washington not to fight each other and embarrass the country, but to get something done. >> yeah, amen to that. congressman, good to have you on the program. >> good to be back. >> thank you so much, charlie rangel joining us. bill? >> 30 minutes left here. again, the market is zigging and zagging toward the close, maria. the sell emphasis has lessened to some degree. still, the dow is down 86 points. it was down 150 points on the open. >> yeah, the market stormed back after the steep early session loss, as you mentioned. and then steep losses again. more on the very unusual day on wall street next. >> and is getting wealthy really just a matter of luck?

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welcome back. it has been a trader's paradise. lots of volatility. lots of zigs and zags. the dow down 152 on the open.

it came all the way back, was actually positive briefly around midday, and now heading lower again, down 91 points at this hour, maria. >> and you said earlier we did have a bias to the sell side. that's what we're seeing. full-team coverage. we're going to kick it off with josh lipton on the broader market. a tough day, josh. >> maria, a quick check on what is and is not working today in the stock market. telecom at one point the only sector gaining in today's session. within that sector, it is sprint that is in the green. softbank raising its offer for the carrier to $21.6 billion. on the downside, financial analysts pegging the technicals on trading not fundamentals, as the yield curve steepens. morgan stanley and citigroup the weakest links. >> and looking at the technology, what's happening there, seema? >> volatile sections. apple actually holding on to a

gain today after unveiling its new radio service yesterday. william blair analyst writing that apple's updated operating system has a cleaner feel. biotech stocks also in the green. now, here's what's not working for the nasdaq. chip stocks weighing on the nasdaq 100 after texas instruments narrowed its second-quarter profit and revenue outlook. many of its competitors in the semiconductor space also getting hit on that news. bill, back to you. >> seema, thank you. not just a down day for stocks. commodities have also been down sharply. bertha coombs has the details on that. >> that's right, bill, in the red all day, because of the fact, in part, we had the boj stand pat on stimulus, and also reports from opec and the government here saying that basically this is a market that is well supplied. interestingly, according to the eia, in april, for the first time, we saw demand in asia and emerging markets outstrip demand in wealthy companies -- countries when it came to oil. that said, they said demand is slipping a bit in china.

that's not very good for the global oil market, maria. tomorrow, we are expecting to get the inventory numbers here. we're looking for a drawdown of 1.5 million barrels of crude. >> all right. thank you so much. coming up on 11:00 p.m. in istanbul, the police are continuing to clash with protesters there. harry thompson has the latest on that. over to you, mary. >> reporter: another day of protests turns ugly. police use teargas. thousands in the square. three deaths and almost 5,000 injuries have been reported since the protests began 10 days ago. what started as a sit-in to prevent the government from building on a park in istanbul has turned into a countrywide protest of what the critics say is the authoritarian rule of the prime minister. he ordered the police action and plans to meet with protesters. the mayor of istanbul saying the police will remain in the square. until the protesters are cleared. they want to keep that square

clear. bill, back to you. >> all right, mary, thank you. yes, that is a top story for us today. maybe a cause of some of the volatility. but there have been a lot of causes for this market today, as we head toward the close, about 20 minutes left. the dow down 94 points now, maria. >> 94 points. so is it a buy on the dip opportunity? oppenheimer's chief investment officer will weigh in on that next. and also banks making big bucks from overdraft fees. when you sign on for overdraft program. now, the government's noticing some red flags. coming up, we'll discuss whether the huge fees are taking advantage of consumers or whether this is a service that people want and are actually willing to pay a premium for. coming up. i want to make things more secure.

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welcome back. a pretty volatile day, as you can see there. that's the dow intraday, down 152 points on the open. came all the way back. drifting south since then. down 96 points right now. the question is, how do we finish and where do we go from here, maria? >> absolutely. with us is art with oppenheimer funds, and good to you have on the program. thanks for joining us. >> thanks, maria. >> art, let me ask you, a market

that's been as volatile as it is, what would be your instinct here? do you want to put money to work, or do you think there's too much nervousness in the market here? >> you know, these wobbles don't bother me a whole lot. clearly, you know, the fed had given people a hall pass, and everybody was out there wandering around. and now, the idea that things might get tapered has caused a lot of people rushing back to class, and put things back down. you just have to take a longer view on things. the economy continues to be in a recovery cycle. i think the patient will be able to walk without crutches. that's what the healing phase is about. so my advice is to, you know, take two stocks and call me next year. >> so you would invest in this market on the fundamentals, not just because the fed is in this market? >> oh, yeah, absolutely. because if you try to -- you know, people are always looking for excuses to not do anything. and the folks that are sitting in cash, the folks that are sitting in a safe, short, fixed-income investments are just losing money very slowly

over the next few years. >> but the fed told us to watch job growth. >> right. >> that's their bogey. they want 6.5% unemployment before they start tapering. we're not getting close to that. >> we're not getting close -- well, that's another point. i don't think the fed is close to tapering. and ir respective -- >> we're not seeing the kind of job growth that would usually lead a stock market higher in some fashion. >> right. but, you know, guys, i mean we all know that. but the bottom line is, we also know that the market anticipates events on the horizon in the future. so i guess, art, my question is, what does the world look like once the fed does begin to taper? because we all know the conversation has shifted. it has changed. and now it's all about when the fed slows down the asset purchases. so when that happens, and we know it could be this year -- probably later this year -- >> no way. >> -- what does it look -- >> no, i completely disagree with that point. that's not what the stock market should depend upon. to your point, bill, yeah, job growth isn't going to get to a point where the fed feels like it has to hike rates certainly,

not for two years yet. where the tapering comes is probably before that, but i don't think it's this year, because you're not seeing the durable rise in employment. having said all of that, the housing market is slowly but surely recovering. you're seeing companies continue to post reasonable profits, although slowing growth rates. valuations of the stock market, which i think is especially critical, are certainly not stretched. p/es around 15 represent very, very attractive earning yields. cash-flow companies are still at very, very high levels. certainly relative to where interest rates are and where they're even going to be in the near future. so on a valuation argument, you could -- and you could still see stocks have some room for multiple expansion. and the flows, as you all know, have continued to be into fixed income over the last several years. people need to readjust their portfolios. all of that will be supportive for stocks over the multiquarter horizon. >> right. great to see you, art. congratulations on your success,

new of head of oppenheimer funds. art joining us at the new york stock exchange. >> we're worsening here, bill. take a look at the close, over the next 15 minutes, a mark is inching toward the lows again, down 115 points. we had been down better than 150 earlier. 15 minutes left in the trading day, and we are worsening once again, bill. >> yeah, the bias to the sell side is kicking in. in less than a month, bob pisani says the bond markets will have a real problem. why? he'll tell us coming up in a moment here. and how much of a leash does facebook ceo mark zuckerberg has for job security? we'll talk with two facebook shareholders to talk about how they're feeling with their stock right now. take a look on the "closing bell" coming up. we went out and asked people a simple question:

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welcome back. the final 10 minutes of trading here for a truly volatile day on wall street today, bill. >> yeah, joining us to help get it home here is jeff cox, and bob pisani, and trader ben willis here on the floor. ben willis, what's the volatility about today? what's the message of the market? what's it trying to tell us? >> it's still an unwinding of the interest rate trade. the whole market is trying to find a place where they're comfortable where the whole

tapering will happen, how that will affect the broader market, from the bond market that's been the mattress for the investing public for quite a while into the utilities stocks, in the equity side of the equation. the volatility is all on the financials now, because of what came out about citibank and the risk -- again, the interest rate risk that they're associated with. that's the big picture affecting the volatility. >> so is that why this market is tracking so close to rates? with the market closing down in the triple digits, what does this tell you about tomorrow, ben? >> i think as we continue because of the lack of any other significant economic data throughout the week, anytime a central bank around the world sneezes, it will move this market. today, we attract back to the plus side on pretty decent movement, but then we gave it all back after a poor reauctioning of the three-year notes. that was tagged as a bad auction, and the market fell apart on that. >> yeah. >> again, it all goes back -- the big picture is still the interest rate structure and how we're going to deal with that

and the fact of the matter is, the interest rates are unnaturally lowered by central banks, not just our own fed. >> right. >> the fed will be the leader in changing that, i believe, and that's what the market is trying to look forward and price accordingly. >> and you think, bob pisani, it will be tougher, the bond market, going down the road here, right? >> well, we wrote about it this morning, that the end of the quarter is in a couple of weeks. everybody will get their quarterly statements, and this is the second quarter in a row where we are going to see significant declines in bond funds. i mean, on the order of 4% to 5% on some of the funds. the s&p is up 2% on the quarter. a similar situation in the first quarter. at some point, bill, my point is, people will look at these things and say, good heavens, down another quarter in a row, and people are going to start acting on it. that's when you will see the great rotation. i think we're getting close to it. >> jeff cox, you've been talking about a sell-off on the horizon for stocks for quite a while. do you think we've seen the worst here, or are you expecting

further losses? >> no, i think this is going to be a tough summer, maria. when you look at the financial markets now, you see fear and loathing. the investors now fear stocks but they loathe bonds. now, i'm following the money. i want to throw three quick data points out to you, and this will tell you really what the sentiment is out there. we've seen over -- according to ici, the last month and a half, about $13 billion has gone into money market funds, back to zero yielding cash. and the hedge fund space. something called directional credit, capitalizes on volatility in the credit markets, has had a big upturn in assets, about $15 billion has gone there. and in the etf space, there's a very small family of etfs that capitalizes, that focuses microcaps, and the money has increased 42% asset allocation over the last month, just to microcap stocks which is telling you investors are getting skittish all the way across, looking for alternative places to put money. >> the biggest thing that would

help the market now is stability in interest rates. that would help emerging markets. it would help japan and that yen carry trade, because the yen has been strengthening as interest rates have been fluttering, and as they unwind that trade, that's a lot of leverage behind that. so a little stability in interest rates would really help the markets right now. >> the bias to the sell side here is about 379 million worth, with about seven minutes left. ben willis, do you want to see this market -- i mean, just from a trading perspective -- do you want to see the kind of corrections we've been getting intraday, where every time there's a sell, they sell the strength? >> the buy-the-dip mentality has worked for the trade. but bob said it before. i think the big trade, the macrotrade, will be the unwinding of the rotation out of the bond funds that the american investor has sought that safety. it takes a long time for that to play out, unlike the intraday swings of 100 points. >> i think it's going to start to -- i think that trade will

take a while to play out. >> it absolutely will. and there will be a negative impact on the equities because of that. that's what we're seeing in the unwinding of the interest rate overlay, particularly that we saw in the utilities. utilities have already seen the correction that we've all been looking for. i think that's what will play out, and eventually, that will be a benefit to the equity side as the money finds its way back into the underpriced equity market. >> i agree. the reason why i think there will be a problem with the rising rates, is the global markets can't handle it. the global economy is very weak right now. too fast rising interest rates will completely squelch any potential recovery. >> right, a good point, bob. >> thank you for joining us. we'll be back on what has been another volatile day with the closing countdown. >> and we're looking at rising interest rates. could be a headwind for stocks, but jack says the market still looks cheap, like the best value out there. he'll explain at the top of the hour on "closing bell." and police clashing with protesters in turkey. still at this hour. we have a live update and more

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up to 2.28%. it was way up there. almost a year and a half high. and the stock market opened lower. so they were going in opposite directions here. then, the yield came lower, the stock market went higher. then, suddenly, when we got the pictures out of turkey of the violence there, suddenly they're all moving in lockstep. so you had two different kinds of markets today. one where there seemed to be concerns about higher interest rates, and then you had sort of a risk-off trade late in the day where they were rushing in to bonds and out of stocks. it was kind of a crazy day. by the way, if you want to know the nature of the kind of sell-off today, the three dow components that were positive, very defensive in nature. united health. pfizer. and proctor & gamble were higher today, maria. so kind of a, i don't know, strange day, but volatile and traders probably loved it very much. >> yeah, you know what else, bill, when you look at where the strength was, you see they're going defensive, right? >> absolutely. >> healthcare and food

companies. these are the companies that, you know, presumably we will buy regardless of the economic backdrop. >> terry dolan, you're very well dressed today. you must be happy with the kind of trading we're seeing in this market right now. i'm kidding. >> well -- >> you've been wading for this kind -- >> we've all been talking about the extension of the market for sometime. we are seeing some choppiness indicative of the markets taking a pause, trying to get some composure, hopefully from a lower level. it gives it the chance to step back, get some value out of the market before we go higher. as we mentioned, i was looking at a correction that brings us down to around the 14-5 area, which would probably be a nice, healthy start to potentially buy. you don't want to miss the 14-6 number. but around that retracement, about a 40% retracement. >> just today they bought the dip, and they sold the strength. they did it all today. >> right. that's what made today a nice, interesting, unique trading day, and whether you look at the nice opportunities, you move forward. the market will be in consolidation stage for a few weeks to come, and looking for days like this where you can

trade in the intraday market. >> all right. good to see you. everybody exhale. we'll have to come back. we can reconvene tomorrow. down 150 in the open and we're finishing down 117 with a round turn. we'll see what happens, turkey update coming your way. >> and it is 4:00 on wall street, and in washington, do you know where your money is? welcome back. i'm maria bartiromo coming to you from our nation's capital. voefrs getting whiplash after very wild market swings, and finishing up with a crazy day on the wall street with the market in the red, finishing off the worst levels. the dow down 116 point. we had sells and bounces at the close, taking the market down further. but the real weak spots