alaska, alabama, second and third-highest, this on top of federal taxes on beer. get what? tennessee has no state income tax, so i don't feel bad. >> any more states you would like to offend, by the way? >> i almost died in vermont skiing. >> oh, therefore, you're justified. >> yeah, that's why i have this niece thing here. >> thanks for watching. i'm off for a little while. i'll see you next tuesday. "closing bell" is next. all aboard! ♪ >> was that you? >> anyone? anyone? yeah, that's in my earlier days in my career. welcome to the "crazy train" stock market. i'll bill griffeth. >> and i'm kelly evans. maria bartiromo will be back tomorrow. look at the swings again that we're seeing in the dow jones industrials average. we're down 114 points. yes, that might be a little "crazy train" playing.

it's another day where investors have been fastening their seatbelts until the close. again, this is a day where we started positive, we gave up those gains, and now decisively so. can 15,000 hold? that's the question. >> tremendous volatility here. the only thing we're missing are bagpipes or something. >> hmm. hmm. you know what? i have a funny feeling -- >> stay tuned. that's still to come. down 113. the trading range has been 230 points, a little more than that today. so incredible volatility stays with us. let's talk about it in today's "closing bell exchange." mike thomas is here with us. you want to look at the other averages? nasdaq is down 31 1/2 points. now to the group. danny hughes from divine capital, michael from destination wealth management, and peter costa of empire executions with a bright, yellow tie. not sure what that signifies today. >> it's the summer. >> volatility. that's been the basis of this market for the last two, three weeks here. what's the market telling us here? >> well, i think there's a few

things. first, the volatility has been so expressed over a prolonged period of time that this seems like a big deal. but, in effect, if you look, it's a blip. actually, i was talking to the head of our s&p/dow jones index group. on a long-term basis, volatility isn't high. it's just we've gotten accustomed to low volatility. you can look at that through the s&p vix or bond price volatility across 12,000 securities. >> so not alarming for you? >> not at all. as a matter of fact, it's probably not a bad thing. i think the other thing you ought to take away from it is driven by the combination of the fed's taper remark and basically the labor market report. i think what you're going to see here is the fed is watching this to see the reaction to this little bit of taper vernacular on the markets. >> right. >> it's a good point, but at the same time, people are looking at these markets, wondering if this is not necessarily -- or that this might actually be the start of something. danny, is this telling us not so

much where we are right now br where we might be headed? >> of course. the market always does that. we were in goldilocks' land, complacency for so long. and now the intramarket relationships that have been traditional have been rearing their heads again. currencies, moving commodities markets, leading by gold, and the bond market leading the equity markets. so we're seeing that again. i think a lot of that has to do with the fed, but there's a lot of backstory to that, too. when we see the excess credit start to decline -- or we're looking at that hedge, we're seeing huge, huge moves in the option market. we're seeing a lot of flares in there that we didn't traditionally see. and that comes a lot from advisers saying to, you know, traditional managers, hey, you know, sell the volatility, because the feds will continue to do what they're doing. what we're concerned about a little bit is that might be a two-headed black swan in disguise. once that trade unwinds, it could be very disconcerting. >> peter, they're not buying the dips as quickly as they have been in the past. what do you make of what we're

seeing? in fact, they're selling strength here. >> they're selling strength, but first i have to get over my flashback to the ozzy osbourne to open the show. >> right. one of the few who got that one. >> i got it right away. no, they're not buying into those dips. what you are seeing is this market could -- really, theoretically, it can go down another 100 points without any -- really, with no news this afternoon, the rest of the day. it could go down another hundred points, but it's not. i mean, there is some -- there is some base to every downswing we have. there is a baseline. we're at that baseline. maybe we'll go down another 15, 20 points. but that tells you there is buying underneath it. >> will it matter if we go below 15,000 on a closing basis today? >> it's something for the media to talk about, no offense to my friends at cnbc. you have to look at where the s&p is. if the s&p closes, i mean, below 1,600, to me, that's more significant. i'm talking on an institutional basis, not so much on a retail basis. >> if we close below 1,600, that's a doubling of where we are now.

that may not happen. michael, i'm curious. we're seeing the opposite of what we saw for the rally building for the last couple of months, which is to say we're starting out strong and finishing the days down. this goes back to a couple of weeks ago, on that friday, where we sold off something like 200 points into the close. there were some wow factors people cited then. but now the pattern is repeating. why is there now this weakness in the market? where are the buy -- is this selling? is this a buyer's strike? what's going on? >> well, i think there is an adequate amount of cash waiting to rotate out of money markets into equities. but right now, we've already been through earnings. we have the fed talking down quantitative easing. what's the real stimulus to drive the market higher given the fact the p/e ratios where they are in the market now, still not as high as 2007, but certainly higher than they were obviously two or three years egg a. so i just don't think there's any clear direction. what's really the stimulus? if you stop and think about it, what is out there to cause the stock market to continue to go up? it has to be earnings. we're not going to see earnings

for a while. it has to be better clarity about what the federal reserve is going to do. right now, we have a vacuum, and in a vacuum, the market trades sideways and there's volatility. >> perfectly said. >> all right. are you going to buy here? is this a dip you want to buy on, dan ni? >> i love volatility. volatility is what we exist for. it's a sale every day. and that's the kind of thing we like to see, because, you know, money managers have been sitting on the sidelines, talking a lot about getting involved in this market. they just wanted to hold off and wait to see this dip. we've also had a lot of refugees from fixed income land probably add to that volatility, particularly in staples, telecom and utilities. so i do think there's a lot of places to buy. there's a lot of value, still the dividend play that we absolutely purchase. so we do think there's opportunity. >> okay. >> you know -- you know, those kinds of assets are still off. >> go ahead. >> those sort of assets have sold off. dividend assets have been hurt with this expectation that growth is going to continue to

rally. >> right. >> doesn't that present an opportunity, then, michael? >> that's absolutely what it does. because if you're looking at the market as being 30% or 40% dividend returns, if you're looking for on the average a slower growth economy because of higher deficits and higher inflation, you have an opportunity to go ahead and dip into some of these dividend stocks that rallied so strongly over the last year or two. >> mike, i'm just curious again, we've been sitting below 15,000 now here. we're a little bit back above it. you know, should we -- should you be so quick to dismiss this as a one-off? >> well, i tell you what, let's just fast forward here and see what the next labor market report says. i tell you what, capital t will go to a small t on taper if you go to 7.7 on the unemployment rate. the market has a tendency to say we've hit an inflection point. i still think some of the fire came out of the wind in terms of this less-than-expected labor market report. we'll see what happens next time around. >> next wednesday, a week from today. that's where so much of the focus -- this is about the u.s.,

you think, not about europe, japan? >> no, this is about the u.s. >> okay. peter costa, what are you watching? what's the bogey that gives you a clue as to what's going on from here? >> you know what? one of the things we've been watching, and i hate to say it because a lot of people have still been very sour on it, but i'm looking at the european markets. i think that there's -- i hate to move money out of the u.s. into europe, because i've been such a proponent of the u.s. equity market. but i think that there are a lot of real good opportunities in europe. and i think people are starting to look at that. i do see some money moving into it. and that's -- i mean, it's not any inflection point or any point that's pointing -- moving me in that direction. it's just that i think there's a lot of good value there. >> all right. thank you, folks, for joining us. we're hitting lower. right at the 15,000 market on the dow jones industrials average. we'll see if we can hold that level. and, of course, the traders, more importantly, the 1,600 level on the s&p 500. thanks for joining us today. stocks have less than an hour to avoid the first three-day losing streak of the year. we haven't had one yet.

seema looks at the big movers. >> reporter: that's right, bill. let's start with the s&p 500. among the worst performers there, biogen downgraded to neutral, citing valuation concerns, down about 6.6%. also lower, moody's electronic arts, news of a secondary offering, the solar panel offering 8.5 million shares. and spectra energy, the company announced a shift of its assets to its master limited partnership by end of 2013. at least three analysts upgraded shares of spectra to buy, or its equivalent, on the news. one ipo to report today. networking hardware company gigamon went public. soaring in its first day, up 8% on the day. and a couple of upgrades and downgrades worth noting. boston bear ticker s.a.m., goldman sachs upgraded them from neutral to sell, saying it had underestimated the success of boston beers, angry orchard h d

cider brand. the company also reaffirmed its fiscal 2013 guidance. bill and kelly, back to you. >> all right, seema, thank you very much. we have a story unfolding midtown manhattan in new york city. we have mary thompson to tell us what's going on. mary? >> hey, bill. this is happening at the hearse building, located at 300 west 57th street. it might be familiar to a number of our viewers. there you see the fire department, about to lower a rope to a window washer who is stuck on a scaffold at the 45th floor of that building. there you can see. so what they're going to do is lower the rope to secure him there. again, the call came in around 2:39 eastern today. as you look at the live shot there, with rescuers attempting to save, again, a window washer who is stuck on the scaffolding outside the 45th floor of the hearst building on west 57th in manhattan. we'll keep you abreast of any breaking news as this situation is developing.

back to you. >> okay, mary, yeah, we understand a high-angle rescue makes that unusually difficult. now, there are about, what, 50 minutes to go before the closing bell. >> yes, there are. >> and we're looking at the dow selling off about 120 points. again, we were below the 15,000 mark. bill, just from a purely technical point of view, you don't like to see the selling pick up into the close. but we've started to see that lately, and today could continue the trend. >> yeah, the benchmarks are ones that traders watch very carefully. so we'll see what happens here. how do you play the uncertain interest rate picture? pimco is predicting that rates wouldn't move for years. when we come back after the break, we'll bring in the experts to help you read the interest rate tea leaves right now. and talk about a comeback. hewlett-packard is the best performing dow stock so far this year, up more than 75%. of course, it was the worst outperformer last year. the question now is can they keep up the momentum?

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interest rates continue to move higher. the yield on the 10-year treasury today at 2.23%. just off a recent high. but pimco's bill gross does not believe the fed will do anything anytime soon to continue to raise rates here. >> really interesting. he tweeted this today. the feds not raising interest rates for years. that makes intermediate treasuries to buy at 2%-plus. which is interesting, because this is what he said earlier this month in another tweet. the secular 30-year bull market in bonds likely ended on april 29th. pimco can help you navigate a likely lower return, 2% to 3% future. so mixed signals coming from the bond king himself, is it time, then, to buy or sell? what's going on in the bond market?

jack is saying get out now. but mike shoemaker, ubs, telling clients to buy in, and joining us with rick santelli. good afternoon, guys. i want to get to you, jack. why, at 2.3% here, have rates failed to test and break out above that level? and why do you think that they're about to? >> well, there's a couple of things happening now, kelly. remember, you have an artificially low rate. remember, we were talking about it earlier today on the network. the 10-year should be at 4%. it's a question of when it gets there. and when the fed gets out of the way -- and they will get out of the way. remember, the talk of temporary was just more just testing the market than anything else. but the reality is this. we're going to see the love affair with bonds is over as far as the market is concerned. it's a question of where that capital goes. >> wait a minute. because, mike, you're saying -- you know, we heard jack said they need to be at 3%. you're saying we're half a percentage point too high above fair value. first of all, what's fair value?

secondly, how significant, then, is that? >> we think actually fair value is about 160 on the u.s. 10-year, and yields drop down to 170, something like that. jack made an interesting comment. yields should be 3%, 4%. markets are all about timing. it's the question of when we get there, what's the path. from our perspective, we think the rates drop a bit first and then go up. we think can you make a pretty decent amount of money being long now. now, does that mean we're recommending people get long for the next ten years? absolutely not. for the next two, three months, yes. we think it makes a ton of sense. >> rick santelli, what did you make of bill gross' two tweets that kelly highlighted there? you know, in some ways, it signifies -- or exemplifies the volatility we're seeing in all of the markets now. but is the bond king saying it's time to sell bonds right now? i mean, we learned that they did sell treasuries in the month of may at the pimco fund. >> you know, here's what i would say. just my own two cents. when bill talks about rates aren't going to rise for years, i think he's correct.

because right now, the effective fed fund rate is nine basis points. we know the target is 25 basis points. and that discussion of actually, like, 94, raising rates is probably years off. the issue of how many treasuries the fed owns and the buying of $85 billion of mortgages and treasuries a month is a whole different issue. so let's clarify that first. one's removing liquidity and one's raising rates. as far as the arguments, i think everybody is right. if the fed clears the zone in an aggressive fashion, i personally think jack's right and rates go up. but i don't suspect that they're going to raise rates, and i also don't suspect that the taper will include much more than mortgages. so even though the secular bull run is over, when we might not see 138 yield challenge for a 10, it doesn't mean you're not going to see 160 again. so i think everybody's kind of correct. >> well, that explains the volatility we're seeing in markets. everyone agrees the yield should

both be going up and down. mike, walk us through this. what are the catalysts? how do we know where we're headed next? >> the next big catalyst is the fmlc next week. we've had some comments from ben bernanke over the next couple of weeks, and if they're clear, or if it doesn't taper, or we'd be shocked if it did, people would say, yields have backed up, it's too much, too soon. let's look for that. so i think that's the next big da datapoint for sure. >> jack, you're not willing to stick around for 1.70 on the 10-year? >> we're not going to see 1.70 anymore, bill. no way we'll see -- there's no way we'll see 170 again. at least not in my opinion. we have already seen the big shift begin. look at the last year. take a chart of the s&p and a chart of the 10 year, overlay them. you will see exactly what i'm talking about. these are large, strategic asset allocations taking place. and that is indicative of people that are falling in love with

equities and falling out of love with bonds. that's -- it's -- >> jack, one question, jack. >> go ahead, rick. >> one question, jack. if you see a 2,500-point correction in the dow, do you think there's a 50/50 chance of seeing a 170 in the 10 year? >> 2,500, okay, a point correction in the dow -- >> so it is possible, then, isn't it, jack? that's all i wanted to put -- >> oh, wait, wait, wait, wait, wait! you're asking me if i expect the 2,500-point correction in the dow. no, i don't. >> -- the stocks are correct. there's a lot of people who do. the argument is -- >> look, rick, you and i know that -- you can have a crisis out there. could you have a -- god forbid, a bomb, something that drives interest rates higher. but that would be temporary. the reality is that that is nothing more than a parking place. we have seen the great rotation begin. all you have to do is look at a chart and you can see it. it's a question of -- >> parking places are okay. it's all right to be tactical. you don't have to look for the big move over the next five years. >> -- the inflection point -- rick, you know when, it runs

from 2.5 to 3, it will be a blink. >> what did you say, mike? >> the parking places are just fine. there's no particular reason you have to say, this is my view for the next five years and they're not going to do anything but that. the marks bounce around up and down, and why not try to benefit from that? when you look at the factors over the last few weeks and the last month, we think the market has severely overreacted. and on top of that, if there is a pump in the road, seasonals for bonds, typically very good. there are a lot of reasons to put on a tactical position. again, do we think the 10-year treasury yield drops down to 1%? no. very unlikely. could it move 30, 40 basis points? perhaps more? sure, that could happen. in fact, we think it will. >> all right. a heated debate on treasury prices of all things. and you guys in chicago be nice to each other. remember the blackhawks are in the stanley cup finals. >> yes! on nbc, right? >> oh, is it? oh, funny i should mention it, then. thanks, guys. see you later. >> thank you very much.

i do think -- it's very telling that people are talking about the 10-year. this rate. these boring bond markets are becoming extremely relevant again. >> look what it's doing to the stock market. lows of the session right now. we're down 137 points on the dow with 40 minutes left. >> that's right. it could be a long 40 minutes if you're long this market. coming up -- >> hewlett-packard may be one of the best performing dow components this year, but the ceo told cnbc that turnaround is not over yet. >> we've got a long way to go. there's a lot of heavy lifting ahead. >> we'll hear more from her coming up in a little bit. is there still time to get in on this red-hot stock? we'll look at investing in hpq coming up. and cashing in on fears of big brother in the wake of the nsa scandal. could you pay $1 a day to make sure no one, not even the government, could listen in on your phone calls or read your e-mails and texts? we've got the head of one company that says they have a device that will do just that. reminds me of almost radar blocking. we'll be right back. clients are always learning more

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welcome back. we're keeping an eye on the marks with just over a half hour to go into the close. losses are accelerating. the dow has been testing the 15,000 level. we could be headed for the first three-day losing streak so far this year. and the 50-day moving average of those of you following some of the technical indicators here. 14,969 on the dow.

we're about 30 points away. we've been talking about the hindenberg omen. people looking at the s&p in that case. >> do you understand what that is. >> here's the difference, conceptually understanding it and rattling off the parameters, which involved the oz -- i was going to call them the mcclelland oscillators. >> yes. i still don't understand what that's about. i keep hearing about it. it's a scary thing. >> it's one of the things where it's called downturns. it's called nine of the last ten downturns. so you pay attention to it, but not dying by it. >> and we do know about the vix, it's at a three-month high. >> yeah, up almost a point. >> yeah, the volatility. and another thing that works on wall street, the dogs of the dow theory has worked big time. hewlett-packard's was the worst performer in the dow last year, now up 76%, and 2% today on the bullish conference, and this is what the ceo, meg whitman, said

today earlier on cnbc. >> this will be a five-year turnaround to get hp running just like it should for a company of this iconic status. as i said, you don't have to wait five years for results. i'd say we're a bit ahead of where we thought we'd be. we're about 18 months into the five-year turnaround. we're about right where we have to be. we have a long way to go. >> so even with its big run-up, is hp still a buy at these levels? let's talk numbers today it today. on the technical side, rich ross. and on the fundamental side is john stevenson, portfolio manager at first asset investment management. good to see you both. rich. big chart in the last, what, six, eight months for this stock. do you like hp here? >> bill, i don't like hp here. i love hp. i think this stock has tons of upside from current levels. when you bring up that longer-term daily chart, you can see that the stock has taken out a multiyear downtrend. in addition, it's also broken out above its 200-day moving

average for the first time since 2011. but the beauty of this chart is the textbook complex head-and-shoulders bottom. now, we're forming a bullish black here into resistance at the neckline of that pattern, around 25.50. but our network says we take out the neckline, make a fast move up to $30 and test $38 a share on hewlett. you want to be a buyer here. >> john, since meg whitman took over, hp is up in the market. is the turnaround for real? >> no, it's not. this is where tech money goes to die is hp. yes, it's up sharply, and the reason it's up sharply is they've had a disastrous string of acquisitions. they've done 70 acquisitions in the last 15 years. the last decade worth of acquisitions have contributed a whopping 7% to the bottom line. so hardly -- hardly stellar, after spending nearly $20 billion. the company has a return on capital of 7%. that compares to ibm at 29% and

dell at 24%. it's pc business, the imaging business, systemic decline. and this is a do-or-die. so far, it's been propelled strictly by cost-cutting. so while it's great it's returned a lot, it won't be there. the biggest risk is does this thing trade at a zero multiple instead of the seven times it does currently. >> you know, bill, it's exactly that type of skepticism that makes me more bullish on the stock. right now, 84% of wall street has a hold or a sell on the stock, which puts it right up there with dodd-frank in terms of popularity. i think you have to love the turnaround, both technically and fundamentally here. >> well, i -- >> john, how does it feel to be a brick in rich's wall of worry? >> well, i think it feels great, because i think the facts are on my side. the reality is this is a stock that is cheap, but that's all it has going for it. if you look at the core businesses, they're shrinking by the day. printing used to contribute 104% of operating profit. today, it contributes 23%.

last quarter, imaging was down 10% in terms of year over year. this company is quickly going to zero. admittedly, it's a huge company and it will take some time. even meg whitman didn't want the job 21 months ago when she was offered it. >> wow, two very -- i have to go, rich. leave it right there. we'll stop right there while you guys are big on the disagreement at that point. we'll have you both back sometime as we continue. thanks, both, for joining us. >> thank you. >> we're keeping an eye on the markets. the dow on its lows. the s&p 500, by the way, trading below its 50-day moving average. twice now in the last five days. if it closes below that level, it'll be the first time, bill, since april 18th. >> all right. before it flopped, facebook was one of the most highly anticipated initial public offerings ever, and one investor just confronted mark zuckerberg

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welcome back. we want to get you an update on the window washer who's been struck on the scaffolding of the high-rise in the middle of new york city. mary thompson has the latest. >> thanks, bill. it's a developing story. it happened a little over an hour ago. actually two window washers stuck on a collapsed scaffolding. very close to the top of the hearst building in manhattan, which is at 57th and 8th.

as it stands right now, the two workers -- there are no reported injuries, and they have been secured by ropes, according to wnbc. the new york affiliate. also, there are roughly 60 fire department -- or firemen on the scene. and the new york police department actually removed two windows on the 44th floor of that building. again, this is not likely to be resolved anytime soon, because there's some concerns about engineering. they need to make sure that the scaffolding is secured before this he remove the workers. it is an ongoing situation. again, the two workers stuck on the scaffolding appear to be safe, and they are secured by ropes at this time. we'll bring you up to date with any additional developments. the streets around the hearst building, we should note, as well, have been cleared. back to you. >> all right, mary thompson, following that story for us. it's shaping up to be an okay year for ipos. we've seen some strong performance today. it could continue this evening when fragrance and cosmetics

company cody prices after the bell. jackie has a preview. >> good afternoon, kelly. that's right. renaissance capital is estimating we could see 200 ipos this year, but right now, all eyes are on cody. the deal could be worth over $1 billion after pricing tonight. the expected range is between $16.50 and $18.50. it begins trading on nyse tomorrow. they're expecting strong investor appetite, because only a handful of consumer names have come to the market. they're known for sally hansen, and opi, nail polish, stetson cologne and calvin klein. despite rapid growth since 2008, the last few quarters have flattened out a bit. analysts blame the slowdown on the slow share of the skincare market, and it says it needs to do better in latin america and asia. proceeds will be used to pay down debt and a small dividend. >> all right. we'll keep an eye on that now from coty's ipo.

and to what was the most anticipated ipo of all time, at least in recent years, and that would be facebook. the company under scrutiny as the shares fall below the price of $38. in fact, they're down about 40% since may of last year, currently trading just under $24. >> the company, as you can imagine, has taken heat for it. just yesterday during the shareholders meeting, ceo mark zuckerberg who met with a ceo who said he believed in zuckerberg and the stock so much at the beginning that this shareholder bet his son's college education on it. listen. >> my family is a big fan of yours, so based on that, i invested blindly, and today i am under water because i have my huge investment in facebook. and this investment was for my son, for his education. i don't know when this price will come back to $38 to $40, which the initial ipo price was

there. >> well, talk about a lesson learned in terms of investing. there's a lot wrong with what he did, and with us now to explain, patricia powell, from the financial group, and rick edleman, and good afternoon to you both. >> good afternoon. >> patricia, is there any justification for anyone putting all of their money into one single stock? >> my heart breaks for the guy a little bit, because nobody likes to lose money. but what was he thinking? i mean, come on. this is education money. you know, he said he put most of his money, or a significant amount of his money. one has to actually think about these things. if your kid is going to college next year, maybe nothing should be in the stock market. if your kid's 2, maybe you can put some money in, but come on. you have to think a little. >> i mean, let's not forget, though -- i agree with you. but, rick, let's not forget the hype before the ipo. we all love facebook. and it was going to be the biggest, most successful ipo of all time. everybody on wall street was

jumping -- you know, licking their chops getting ready for this thing. can you blame this guy for putting his son's education program in that? >> based on his limited knowledge and expertise, no. you're absolutely right. he fell victim to all of the media hype and all of the push by wall street to focus attention on it. and that's the big shame. people focusing on their investments. only on what they're hearing in the news. and that is often a dangerous methodology. remember that a 529 plan is the best way to save for college, because all of the profits are tax-free. that means that his facebook profits have to be so much higher than the overall market to compensate for the fact he owes taxes on those profits. he wouldn't have in a 529 plan. >> well, i'm not sure there were many profits to speak of. it goes back to this issue, i guess, of also believing the hype around zuckerberg or maybe this being the next big thing. you know, maybe looking at this kid heading to college and seeing the amount of time he's spending on facebook. is there something about these kinds of investments that make them less sound, a much riskier

bet, than perhaps what might have been the hottest thing 10, 20, 30 years ago? >> i think it's based -- >> you said it right. this is a bad -- >> let's go to patricia first on this. hang on, rick. >> i think it's based upon the age of the child. you know, if the child is 16 or 14, and they're in high school, you don't have a lot of time for an investment to work out. you also have to take some very basic rules, like diversification. if he had invested in 4%, 5% of the education money in facebook and he's got this problem, it's a manageable problem. but clearly, he overdid it. >> yeah. >> there's reasons there are investment rules. >> is there a -- i remember when my kids were born, one of the big things was give them shares of disney. you know, something that they could identify with. >> sure. >> that they could put away and hang onto down the road. is it -- are we saying now, rick, that it's no longer prudent to put child's college education savings into individual stocks? should you simply go with funds like a 529?

>> a 529 plan is the best way for a college education savings. however, your point is still valid. there's nothing wrong with buying shares of disney or some company that the child is going to identify with, because it's a wonderful education lesson, so they can learn about capitalism and how the stock market works and understanding dividends and p/e ratios and all that good stuff, which is wonderful for education. in terms of education, that's one piece of lemonade out of this. this guy's son just got one held of an education. >> yeah, i was just thinking the same thing. >> and a tuition bill. >> yes. and i think the father got an education, too, let's hope, right? >> that's right. >> thank you for your thoughts today. appreciate it very much. >> thank you. we just have word as we head to the close, 20 minutes left, the buy is still to the downside. not a lot of heavy trading, but a lot of stock that is up for sale at this point. the dow down 128 points. at one point, it was up 119. so another wide-ranging day today. >> that's right. we're seeing volatility on the rise as an increase.

the stocks sold off pretty quickly, and up next, we'll explain why investors should still be selling. and it's been a party for companies generating most of their revenue here in the united states. but is it justified? is america still the best house on the worst block? we've gone from black sabbath to milely cyrus. and on a day when kelly emmons is with us. coincidence? i think not. back after this. we went out and asked people a simple question: 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.

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come to an end? or is this an opportunity to add? let's ask ann and matt. what's the occasion? >> one of our funds close to celebrating its 25th anniversary, so we thought today was a great day to come and ring the bell. >> it is a great day. we're looking at the sell-off, and i'm wondering, everyone is starting to question what's going on here. >> this will make it a great day. it's interesting what's going on. you can feel that the fed's been trying to test the water about how the market will react when finally they move away from qe, and everything that's happened in the last few days suggests the markets are more sensitive to when exactly that happens than perhaps everybody thought. >> matthew, you've been skeptical. you've been waiting for the market to sell off for a while. this could be our first three-day losing streak for the dow of this year. is there more to come, do you think? or what do you think is going on here? >> we're starting to see the

sentiment from buy the dip to sell the strength. we saw that this morning. this could be -- i'm not going to say it's the final nail in the coffin for this market, by any means. you have to buy the dips until you're wrong. we're not wrong yet. if we're down 1% and you're buying a dip, and that's all you lose. it's not so bad. the problem is we used to be able to press this market more, to get more downside, to get more of the flush. this is a slow move for us. i'd like to see it be faster if we're going to get the rally up. as strange as that sounds, the 100-point down day gets all of the attention, but everybody is calling for the 5% retracement, it might shake some of the weak buyers out and the people buying the dips up here that weren't quite sure. they get shaken out at 5%. >> and if you look at the relationship between the u.s. and global markets, because we've seen a lot of selling pressure, what's the tail here and what's the dog? >> well, there's a big thing with the carriage rate. and because the cost of money has gone up because of what's happened in the bond markets -- >> long on the dollar and short the yen.

>> yes, and that's part of the reason you had the volatility come into the market. when you actually look more broadly, it's not been a great deal of economic news, which is underpinned the sudden shift in sentiment. the economy around the world has its good parts and its bad parts, but it hasn't changed very much in the last couple of months. so this is a buy-and-sell kind of tradeoff in supply and demand. it's not a fundamental shift in underlying economics. >> do you buy this market -- you -- because the fed is in this market? or because you believe the economy is getting stronger here? >> i think what you do is you buy the market. not because you think the economy is getting stronger, but because you think the companies that are operating in this global market are continuing to do okay. actually, the corporate news hasn't been so bad. the corporates are still good balance sheets and still able to create growth and find growth in other parts of the world. the u.s. economy is healing. it's healing slowly, but it is healing. so actually, the economic underpin is okay. >> certainly relatively better than other parts of the world. >> yeah. certainly europe where i'm from, obviously. >> all right. thank you, guys. we want to go back to mary

thompson at the headquarters with the latest on the rescue effort in midtown manhattan. >> what we have now is the new york police department says they are going to attempt to bring the two workers that are stuck on the scaffolding right around the 45th floor of the hearst building on 57th and 8th. the police department are planning to bring them in through the windows. the two workers have been stuck on a collapsed scaffolding since about 2:30 eastern time today. they are secured by ropes, and the police department did remove two windows on the 44th floor. so again, right now, the police department is saying they want to bring the two workers in through the windows. by all accounts, we've been watching them. they appear to be somewhat calm. one of the workers appeared to be drinking a bottle of water just about five or ten minutes or so ago. but that's the latest. the police again attempting to take them in through the windows, the scaffolding again collapsing about 45 stories above the ground on the hearst building. of course, again at 57th and 8th. back to you. >> a precarious situation in midtown. thank you, mary. >> the bias, though, just got

this, is now slightly to the upside. it's very, very small. 10.25 million worth of stock on the buy side. but we're -- >> we're back above 15,000. that may help explain what happens in the next 10 minutes or so on whether we can hold the levels. it looks like a triple-digit losing day and the third day in a row for the dow jones industrials average. >> and this is after such a strong end to last week. we are minutes away from what could be the first three-day losing streak of the year for the dow. we'll look at whether this is the start of the long-awaited correction we've been talking about, after this. ♪ [ agent smith ] i've found software that intrigues me.

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>>. >> another round of layoffs hitting jpmorgan chase. kayla has the details. >> jpmorgan cutting 1,800 jobs in its mortgage servicing unit last friday, according to people familiar with the matter. the cuts were mostly at call centers nationwide, with florida taking the biggest hit. they said they would cut costs by eliminating 17,000 jobs. the majority of the jobs are coming from the mortgage servicing unit. so as credit improves and fewer

dli delink winsies. the bank has cut more than half of the jobs previously slated to be complete ied by 2014. jpmorgan not the only bank shrinking. bank of america has cut nearly 14,000 jobs related to its legacy asset servicing business in just the last year, as the portfolio of delinquent loans shrunk. these are positive moves for investors, because they mean the mortgage banking units at these banks can focus on underwriting new loans and not servicing bad ones. bill? >> all right, thanks very much. we're watching the volatility here with vix moving higher today, and, bob, another triple-digit day. there's a sense, we were asking ann earlier, what's the tail here, what's the dog? >> and i can tell what you that is. it's interest rates. the take wagging the dog. look at the 10-year yield. put it up here, and you can see as we're moving down -- the

10-year yield moving upward, 2%, 3%, the markets have had trouble dealing with that. that's what's moving it the other issue is the dollar-yen, and there are relationships here that are pretty close. we can see it's moving to the downside. look at that. today, the dollar. and there's the yen. >> that's the carriage trade we were talking about before. >> and gigamon, will coty tomorrow follow? >> it will be very, very hot. a lot of people want in. it's very well oversubscribed, and it will be a nice pot. maybe at 17.50, but a nice pop at the open. >> we'll know the next hour? >> well, we'll know late tonight what it will price at. we won't know what it will open at until tomorrow. >> don't put all of your kid's college fund into coty. >> up next, we'll be back with the closing countdown. and after the bell, if you're worried about keeping your phone calls and your texts confidential, word that the nsa is logging all of your electronic communications, we've got just the thing for you. a man behind a new app that says

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welcome back. this could have been another one of the important technicals. let me show you why. this is the dow. opened strong this morning, up 119 points. and at the low, we were down almost 140 points. so about a 200 -- 260-point swing. let me show you the two-day chart. we had this happen recently. we almost took out yesterday's high, and we are definitely taking out yesterday's low, almost a key reversal day, allen valdez. are you still buying these dips, though? >> now we're getting cautious. you know, in the s&p, we're at 1,612. 1,610 is the moving average. we want to be careful. a lot of the traders now are saying, hey, you know what, go away with june, let's lock in the year profit for the first six months and back away for the rest of the summer, for july and august. it could be slow. why risk it? >> you're becoming cautious. >> yes. >> allen, thanks very much. >> thanks, bill. >> we had a down day. this will be the first time this

year that the dow jones industrials average has had a three consecutive day losing streak in 2013. and we're finishing below 15,000, i think. we'll wait and see how that plays out. let's talk about -- set you up for tomorrow on the second hour of the "closing bell." red arrows across the board. i'm kelly and maria is back here tomorrow. bill griffeth will rejoin me in a moment. the dow posting the first three-day losing streak of the year and picking up as we go into the streak, down 127 points, or thereabouts. 36 off the nasdaq. about 14 points off the s&p 500. we're watching the 50-day moving averages, as well. so where were we heading following this losing streak? again, the first one we've seen in 2013. we're joined now by our very own mandy drury, steph l