to herb greenberg. >> thank you for listening, thanks for tuneing in, brian. i will give you a hug. i am not allowed to give you a cry, i am allowed to give you a hug. >> by the way, people should check out that twitter you did with me earlier. >> thank you, everybody, keep on watching the market. we track them on the downside. "closing bell" is next. >> hi, everybody, it is the final hour of the most difficult trading day on wall street today. welcome to "the closing bell," the final stretch. bill, we bought the the dow down 210 points right now. >> it was down 236 or 238, if memory serves, maria. the sell-off started pretty orderly, a few weeks ago, we were down a drift, then a leak, now some are wonder figure this could become something bigger. interest rates spiked earlier in the day. you had disappointing earnings from cisco and walmart. have you gold spikeing. you have the vick's spikeing

today, all those typical things that usually happen when the stockmarket starts to sell sell off whachl i am struck by is you are starting to see what you would call a normal kind of reaction to some of these markets as stocks move lower here. >> well, at the end of the day, it's the consume were. walmart has told us the consumer is not as strong as many thought. cisco is telling us the business climate is not as strong as many of us thought. so this market selling off here on the idea that the economy is actually a lot more anemic than we thought. only the naming of a new federal reserve chairman, not only the possibility of the beginning of tapering, which i doubt owe glow the debt ceiling debate is coming, the budget battle, all kind of things, by the way, chart watchers are watching the dow and the s&p today. the dow is sitting on its 100-day moving average and the s&p is very close to its 50-day

moving average, although, we have moved off of those here. we will watch those very closely as we head into this last hour. >> i spoke with bull, he has been a billing bull. he said, maria, i'm a long-term bull. there have been nagging problems, for example, good economic news out of the euro zone and china did not result in a rally. is something he is noticing in the united states. he says the old addage, when the bad news wane take it with it wants, we got a triple digit decline down 210 points, close to the lowest as you heard on the dow the fax also showing a double digit decline, pretty sharp here, bill, technology definitely one of the big leaderships on the downside. >> cisco down about 7% today, huge decline. >> 7%. >> you had 4 uchlt, 5% of the work force cut on the earnings last night. they talked a lot about the

emerging marnlths, they are seeing the weakness in the economy in the emerging market. that's hitting cisco hard. s&p down 11.33%. what's behind today, bob? over to you? >> two simple things, maria. it's earning growth concerns, walmart, cisco, the other retailers. the other thing, of course, what's the right interest rate? look at the ten year. nobody knows. that's a part of the problem. look at the ten-year yield moving up, lower than expected. that's something very interesting is happening. look, the yields are moving down in the middle of the day. wait a minute, the stockmarket is not really reacting to this. that's what's got a lot of people talking down here. look at that, no rise in the stockmarket as the yields have come down. we have a lot of people believeing if fed will taper in september, despite the weak data. nobody seems to know what exactly they mean when they start tapering. let's move on here, move onto the sectors. this is overall risk reduction. what does that mean? you have a cyclical group,

health care stock down 1.5%, a defensive group, that's risk reduction. they're taking it down. the volume is not heavy. it's on the moderate side. nobody is rushing to get out of the door. there is a drying up of bids. i was a little encouraged, guys, by what i saw by the housing numbers. did you see those numbers from the builders? highest levels since february, 2006. look at home builders moving to the positive side here. when was the last time you saw home builders up on the day? they're all up. look how much they have declined. i want to know d.r. horton and k.d. holm, those are the first time home builders. toll brothers, those are the move-up builders, the higher priced guys. they're getting hit hard, not as much. my point here is if market is making a distinction between the first-time buyers getting hurt by the higher rates and the bigger guy, older people who are concerned but not necessarily going to stop buying a home. guys, back to you. >> stick around, bob, we want

you to join the conversation as well, because we will bring in michael from destination wealth management, keith fitzgerald, frank from planned financial services and our own rick santelli, rick i want to go to you. another up with of those days the interest rates spiked early on. they came back. we hit 283 on the ten-year note. what's going on there? >> well, to me, we calm it the treasury market went high. means it's in new territory. it's carving out new reigns. it is most likely covering out a new high yield close. even tow bob is exactly right, we are now 7, 8 basis points off our high yield, up 4 basis points on the day. it's an important 4 basis points. we will most likely usurp that july 5th, 274 high yield close. when markets go hot, it's so hugely significant. they're proactive, interest rates are moving the momentum gauge again into positive territory. it doesn't surprise me that

stocks are reacting the way they are. but maybe the most important, yet underreported bit of data today was treasury international capital flows. the biggest monthly drop since 2007, we'll call it six years, close to 67 billion and china and japan both liquidated securities to the tune of 43 billion. i think that's important. >> yeah, that's very important. a good point there. michael, what do you want to do in a market that's down 217 points right here? >> you need to continue to get conservative, maria. the markets rallied tremendous amounts this year. what's interesting, the assets that have been killed, i this, really the s&p 500, the assets that have done well have been the beta assets, high risk assets, assets killed have been conservative dividend paying boring assets. we talked about how they rallied, frankly, if you have fixed income yields rising as rick has talked about, i think that momentum comment he made

was absolutely right on. where else are you going to go? i don't think you can be given reits with building stocks. i think you got to go to more conservative stocks. if you have gains, if you have tesla and made a killing on tesla, it's time to take a little profit and put it in something that will give you cash flow. >> go ahead, maria. >> i was going to say, yes, you can look at this market and say i'm up in the double digits in 2013. i might as well take some profits here. you might look at this market and say, wait a minute, something has changed. cisco lays off 5% of its work force. walmart misses the corner. is it a valuation story or has something changed? keith fitzgerald. >> you know, i think that's a very interesting question, marieia. i don't know it's just valuations. i think we are dealing with a week cyclical time of year, volume lightens, that spread widens. that's part of it. profit-taking near record levels is also normal. looking at that, i'm very

conservative in here, i'm also looking to buy, i'm looking to buy if areas of technology-related censors, big data, energies, particularly appealing to me, where i can get high income, kinder morgan partners. looks like a good defensive, yet offensive play here. i like cold, hard cash. >> are we there yet? you are not down to levels you would buy yet, keith? >> again, i'm nibbling i'm happy to buy it here. i'm happy to buy it lower, too. >> what about you, frank, you are looking for levels to get in? >> we feel it's an important time to buy into the marketplace, it's just one bad day. we're actually looking ahead to the september which is a -- >> is that a mistake bell? >> it's a difficult time for the markets to operate in. you have a possible new fed chairman going to be anominated. you have the budget issues coming up, so i think september is getting more indicative of what will happen the rest of the year versus what will happen in the balance of august. >> what happened there, maria,

somebody closed the market early in. >> it would be nice if it closed right no. . i wanted to point out. the bell just rang, no one is at the podium. >> we're leaving. >> who rang the bell? >> arthur good free. >> exactly. >> bob, what's the mode on the floor? a lot of guys there, we have been talking about this. a lot of guys are talking about raising cash levels here. they were in a little depression, weren't they? >> yes, the leverage is very, very, high. we are essentially at near record highs. hey, rick, the guys down here want me to ask you your take on this we have been talking about the fact that nobody can quite figure out what the right yield is on the ten year. considering growth is low. it's anemic. considering inflation is reasonably well contained, by the fed's definition, below 2%. what's right, what's the fair value for the tenure? 3%?

3.25? where should we be? >> bob, i can't answer that. i can give you my ideas or opinions, but nobody can answer that. that's why i think the treasury market at this point in time at least on this floor is more important than the fed and the taper. because what i see is bond market, you know, in a real marketplace trying to answer that question. >> yeah. >> do you see the markets, though, rick, acting a little more normal? we have this spike in gold the vick's going higher. we have a comeback for the yields in the bond market as they started to buy into that after it hit that 283 markets. but everything seems to be acting somewhat normal today, don't you think? >> everything but stocks and stocks, in my opinion, are now starting to act a whole lot more normal. i mean, look at treasuries. we see a drop in initial claims, granted, it's not a leading indicator for jobs, but it's something people look at t. response, we shot up to 282, 283. >> right. >> all this is normal.

i think the way it came back is normal and gold medal, listen, that gold spike, i can't tell you exactly what happened, but my guess is, it wasn't somebody getting in. it was a short getting out. those are always the ones that do it big and do it quick. >> bill, i just want to point out one thing because i mentioned to you what ralph and i were talking about earlier. >> right. >> and in the e-mail that he sent me, i want to read you this quote, he says, "i have advised those who have followedpy bullish story for the last four-plus years that it would be prudent to take some profits off the table. god knows, they have have cash." bottom line, here is one of the biggest bulls out there saying we have not hit the final low. >> and we have ralph with us tomorrow. so we'll get some more. we'll probe him a little more to figure out his thinking on this to this pullback here. thank you, guys, for joining us. >> thank you for having us on. >> see you soon. thanks. gold is at its highest level

since june 19. >> when gold got about 13.50 an ounce, a lot of traders were talking about the tech physicalal level being briefed. we are looking at gold prices now near the high succession up around $30 on the day. keep in mind, though, a number of factors that traders are pointing to for perhaps reasons that this occurred, looking at that time safe haven demand aspect of gold the fact that we are looking at this rising unrest in egypt, in cairo, that is one factor. the weakness in the stockmarket perhaps another factor. the dollar another factor. but a lot of those things had already been in the works before we saw this major move in gold this afternoon, so traders pointing to those technical levels and, of course the volatility we often see this time of the summer as a factor in the gold run up we are seeing. we see it in silver. silver prices up 5.5%. silver up 20% from the lows in june.

we see a lot of momentum in the metal sectorment it will be interesting to see if this momentum continues in the sex ahead. back to you, guys. >> thank you. 45 minutes until the closing bell sounds. we are near the lows of the day. the dow jones industrial average down 226 points. i want to get a closing flash. domenic, welcome. >> it's good to be here, maria. what's the dow industrials. they may be down 200-plus points, there is one group of stocks flying higher check out the gold miners on the backs of what we heardant gold and silver prices. they have been beaten up badly as they dropped over the past few months, but they're soaring along the price of metals today. if you look at names like barrett gold, new mining. remember, a lot of these gold meaners cut their dividends over the course of the past few weeks here on those slumping prices, but they are soaring alongside those gold and silver prices.

keep an eye on those for sure. they're ones we will watch as we head towards the closing bell. >> 45 minutes until that closing bell sounds. for the bulls, the dow down 231 points, bill. >> heading back towards the low of the day right now, not helping matters, of course, in this market, the violence and chaos in egypt. after the break, we go to cairo for the latest eruptions of deadly clashes there. >> keep an eye on these stocks, dell mysteriously moving off where it was supposed to be next tuesday. we'll have all the incidents you need on "the closing bell." stay with us, a wild market day. back in a moment. before global opportunities were part of their investment strategy...

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. >> some have been saying the deadly violence in egypt added to gold's big move today. president obama spoke as it reached 500. good evening, ayman. >> reporter: good evening, bill, for the second straight now the country is imposeing a curfew. this comes on the heels of another violent day in egypt. not like the one we saw

yesterday, not in the death toll numbers, one that did see fatalities among both police and security forces here. it began this afternoon with protest marches, among those supporters of the ousted president who are participating in funeral marches and others across the country. in one instance, they approached the municipality building here in cairo. led to a confrontation with police that led them to fire tear gas to disperse the crowd. the interior ministry says they authorized live ammunition against protesters attacking buildings critical to the egyptian government. so it adds to the anxiety level, yesterday we saw that incredible death toll that continues to climb as people recover the bodies from the clashes. more importantly, there are accounts of egyptian soldiers in the sinai peninsula. at least seven egyptian soldiers were killed there. overall, a volatile situation

and certainly one with uncertainty as the interim government reels with the mounting pressure over what it did yesterday. phil. >> ayman thank you very much. let get reaction on what this means to the rest of the globe. robin, we are struck, you go back to the days of hosni mubarak, those were difficult times, under mohamed mursi they didn't get better. the people of egypt are still struggling right now. what is going on, in your view? >> with him well, egypt is slipping back into a carte blanchee military rule, repression and open gunfire by civilians. this is, unfortunately, likely to get worse before it gets any better. what is interesting is over the past 24 hours, you seen virtually unanimous condemnation by the international community

egyptian military reaction to these protests. it's hard to see how this now deeply poll varized society gets back and whether the democratic process has been discredited, which could have a rippling impact across the region at a very important turning point. >> that's a really good question to ask. how do you see this playing out and do you worry that the democratic process has been kill killed? >> i think i agree that this polarization we are seeing in egypt grew after mubarak was ousted and intensified in november, 2012, when once he essentially pronounced himself above the law. what we are seeing is a worsening of that polarization, i think robin is right, it's very difficult to see the two sides come to an agreement.

the people are very pro military and very pro brotherhood. this centrist fashion is the smallest faction. >> a tent pole politically for the middle east. this was a stable area, relatively speaking. what does this do to the balance of power in that region of the world right now? >> the first thing i will say, egypt was a predictable government. the problems we are building under the mubarak regime were bound to come to surface. the longer the regime existed in power, the biggest those problems got. and there was a moment after mubarak was ousted when there could have been consensus but unfortunately, the parties that were involved were unable to create that consensus. >> robin, president obama out today in his press conference canceling joint military exercises. you don't think that this is something egypt should be

concerned about with right now? >> well, the president made an important statement deploreing if violence and military exercises suspended expected to take place next month. i suspect there will be growing pressure on the administration from the hill to take tougher actions when it comes to international or political american aid to the egyptian military, but i'm not sure the egyptian military really cares about the united states right now. walk is extremely unpopular by among both sides in this crisis and i'm not sure that there is anything that's going to make a huge difference or get either side back to the negotiating table. >> what do they care about the they don't care about the global perception? >> i think robin is right. i think the egyptian military believes two things. one i believe they believe they have must be lick support and mandate to crack down on the brotherhood. two, i believe they sincerely

believe the brotherhood is a dangerous, violent organization, they must crack down on them. >> all right. we will leave it there. we are watching this story township in real time. it certainly is tragic. thanks very much to both of you for joining us. we appreciate it. meanwhile, as well as we approach this final 40 minutes the dow at its low down 233 points. >> meanwhile, warren buffet is getting behind the wheel of general moebl motors. they increased the stake by 60%. when we come back, we will hear from somebody that says you should be following buffet's lead. could chinese maker lenovo dial up a deal for blackberry? back in a moment. (announcer) at scottrade, our clients trade and invest

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>> a technical term for how managers hold their holdings. we showed a lot of them, they showed warren buffet, berkshire hathaway shared 10 million in the last quarter. stock is taking a hit today. you probably know gm is up 20% year to day. so if warren is buying gm, should you? let's talk numbers today. on the technical side, rick

ross. on the fundamental side, steve. rich, what do you think? what is the chart looking like on general motors? >> it suggests you want to take this late summer squall to risk aversion to add more high quality stocks, more specifically general motors, the fact that they're buying it reenforces my conviction. when you bring up that stock, you see a chart that has almost doubled over the last 12 months. tracking this trend we run into high end resistance up once again at the high end of that trend channel. but what i like is the day below the 50 moving average. why do i like a break below the 50 day? look at the last time we did that, june 24th. it produced to be a false breakdown, it provided a catalyst for the next 12 months. i think history repeats itself. this stock trades this fall.

you want to be a buyer along with warren buffet. >> steve, do you want to buy because warren buffet bought? >> i think it'sant to drive into the ditch. the reason i say that is housing. the auto sector typically follows the lead of housing, people buy new cars when they feel good about their homes and are making money. lately, most of the home builders are at the near or lows of the year, in fact, i'm a fundamentalist. i did bring along a chart of the housing etf, overlay that with general motors, typically, they're overcorrelated. the fact that hxb is turning poorly. usg, fastenol, there is a pause in the housing recovery, that typically means autos are in trouble as well. i would be selling at general motors, not buying. >> bill, if i may, in fact, i'm going to give you fry advice, give you a bonus. you want to be a buyer of those housing stocks, key intra-day reverse also.

look at the sectors today against the backdrop of the sloppy take. it's hose same home builders. you want to be a buyer of home builders and housing. i like gm. i like housing as well. >> you are buying some dips today, rich. >> i am, indeed. >> that's how you make money in a bull market, bill. >> appreciate it. >> talking numbers today. >> we'll take a break. we do got the dow with 30 minutes left, coming off the lows of the sex, now down 234. by the way, keep an eye on the s&p. it's very close to its 50-day moving average alt around 1556. that's the number to keep an eye on as we head towards the close. up next, we'll look at the disappointing earnings from bellwhether's cisco and walmart are sort of the canary in the coal mine when it co himself to the market and the economy. then, he's been a big bull, so why is dennis gartman singing a different tune today about where stocks may be headed? we'll ask him, still to come on "the closing bell."

check out the online edition of talking numbers. tdd#: .

. >> welcome back. the market down the dow. two bellwhethers sending jitters to the markets about what they say is to come. walmart and cisco citeing if economy in the guidance. cisco is cutting 4,000 jobs. >> so the question we ask, are these outlooks an accurate look ahead, is there anyway the fed starts tapering next month? we don't think so. if walmart and cisco have it right. with us is katherine mann professor and chris thornburg, economist and principal we have began economics. katherine, are cisco and wal-mart individual stories are they indicative of a bigger trend, do you think? >> well, i think cisco and wal-mart are indicative of a bigger trend. we seen in the trade data a couple quarters now, slow

response on the export side, meaning the growth picture isn't good, slow imparts of consumer goods. so that points to a slower u.s. economy particularly of consumers, at least one not rebounding. so i think wal-mart and cisco, when they're giving guidance an concern they got it right both about the domestic economy and the global economy. >> chris, you don't think the pessimism is accurate, right? you think it's overblown? >> yeah. well, yes and no. let me put eight different way. first of all, keep in mind, both these companies saw their profits rise. in the grand scheme of things, that's relatively good news. they were less upbeat in terms of the year, cisco maybe using that as cover. we know all these tech firms are trying to trim and lay off the labor force him they want to be lean, tight machines. that's where they're going. as for al-mart. the labor force has turned another direction over the course of the last year or. so the biggest decreases in unemployment we are seeing are

those in the lower skilled work force, taking advantage of the jobs and leisure and hospitality and restaurants, ultimately, what has been slowing them down is the payroll increase that began the beginning of the year. candidly the consumer spending will be okay the second half of the year. >> so you are looking at some special situations, chris, rather than trying to figure that the number one retailer out will is seeing a slowdown in consumption, which we have been hearing from other specialty retailers at the same time. >> right. but there was a general slowdown in consumer spending in the second quarter. that was in response to those tax hikes that occurred the end of last year. keep in mind the tax hikes have a delayed affect. on consumer spending. so as a result of that, it's not a big surprise the consumer is spending big dip in the second quarter. the july retails came out. they're better. the july number for auto sales came out, they're better. incomes are doing great. income among the sort of work force today are growing at that

time fastest pace they have since the rebound in 2010 and ultimately, that's what will drive consumption the second half of the year. >> katherine, what's important for new terms of metrics. we got economic indicators, gdp, unemployment, what do you think is the most important indicator of what tells the story of where we are in. >> so, for me, i see four reason force why we ought to be looking for a slower or really an anemic global growth and u.s. growth in the second half. one is you got the second two of the sequester dropping in the united states. if there is tapering or even if there isn't, just taper talk will tend to reduce the rate of growth in the u.s. globally, you got europe eeking out a positive number but ready at any moment for another snap down by the financial markets. you have china still unable to tran six to a consumption-led growth path. so there is a lot of uncertainty out there both on the u.s. side

and the global side. it's really causing business to retrench. you don't see much happening at all in terms of business investment either in the united states or around the world, once you strip out real estate. so for me, those are the signs that i look at when i try to determine water going to be the forecast for both u.s. and global growth. >> so if you sat on the fed, you wouldn't start tapering next month? >> absolutely number i think there is very little in the numbers that warrant tapering at this time. there is a lot of uncertainty. as i say, the second shoe of the sequester has not dropped yet. there were a lot of. >> oops. >> people thinking, oh, i'm be able to retain my workers. they're not able to do that. they're starting to fire them. >> chris, would you taper next month? >> no, i wouldn't. that's only because i do agree all the forces that were just described are in play. means that growth in the u.s. economy would probably be between 2 and 2.5% in the second half. itself not fast enough to start

tapering. with that in mind, take china, take europe, take japan, remember, all these forces remember in play six months ago, candidly, they all look a little better now than three, four months ago. of course, is better news for the second half than what we would have had say three months ago. i think things are looking modestly up. >> it might be better news when we look at the real economy, not for the stockmarket, better news than we will see has been priced in. itself why you are seeing a retrenchman in equities. >> i disagree with that. the market from a long-term standpoint is still underpriced. >> i disagree with that. their earnings are only being generated off of a labor force participation that's low and capital share of gdp being too high, so you know, there are other numbers that suggest equities are way overvalued. >> in terms, if you look at the spreads over treasuries, it's still the best deal in town. enmoos that's where money should

be. >> thank you, folks. >> appreciate it very much. heading towards the close, we got about 30 -- 20 minutes left in the trading session and we have been heading towards the lows again. we're down to 226 on the dow industrials right now. >> the dog days of summer are here, they're hitting the markets hard. is this just the august effect next or something worse? did you know it's national relax aation day in. >> is that what i felt? >> yeah. >> happy relaxation day, yeah. i am relaxing with the traders today. >> they got polos on because of national relaxation day. after the bell, another way to hand him the dob days of summer is to have a nice summer drinks like a frozen margarita. sounds good, later, we'll continue our look at reality television with john tapper who has turned around 800 bars. he says it's running a science, not a billions. what happens when the business and the economy sputters? we'll ask him. to treat my low testosterone, my doctor and i went with axiron,

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>> well, it's pretty bad. it's not awful. let's show you the highlights of what's going on here. we are essentially at the lows of the day, it's put up a full screen. it's 6-1 declining for the advanceing stocks. it hasn't gotten any better. ritz moderate volume. there is a broad rick reduction. means cyclical stocks are down, europe is down, basically everything is down 1.5 to 2%. what is interesten is the ten year, how it interacted with the stockmarket. we went up as the initial job jobless claims came in lower than expected. people are confused about the lack of reaction. we are sitting essentially at the bottom here. one thing that is interesting is the response of the home builders. you know what a mess they have been. they are down 20% from the highs. yet when we had the home builder's sentiment report come

out this morning very positive, home building stocks took off and went to the plus side, what's up 5% today? nothing except the home building group as some people are starting to talk about the prospect of picking at this group at this point even with the prospect of higher rates. ida says home building stocks are a buy right now. back to you. >> all right, bob, thanks very much. we are not finished. they are set to report earnings at the top of the hour. don. >> bill, let's talk about the fee, earlier this morning when it came to retail products. let's keep the thing going with nordstrom t. upscale department store slate to record after the close. on average they are looking at 88 cents per share. nordstrom is going to give us a little more complete picture of the consumer spending economy when it comes to the higher end consumer after it looks at the value and mid-end from k-mart or rather wal-mart and kohl's.

investors will be paying attention to the comparable store sales numbers. onto the tech scene, how about a company many believe is a leading indicator of the sector. we tuque u talking about applied material. they make commuter chips, analysts pediatric earnings of 19 cents per share of sales up to $1.2 b. let's polish off the t trifecta. yeah, we're in a longer-term downtrend if you will for personal computers as more and more consumers look towards tablets and smartphones as their device of choice. just about everyone out there wants to know the status of that takeover battle between founder michael dell and activist investor icahn. there is stuff for just about everyone, all those business junkies after the closing bell. >> we like that. >> we'll get the popcorn out,

get ready to go. . >> all right, heading towards the close, the dow down 215 points marksryia, i mentioned earlier the s&p is close to its 50-day moving average. keep an eye on 1556. we will see if we breach that to the downside by the close today. >> all right, david, morgan stanley, private wealth management will joan us. he comes with a list of three things to watch to find out whether this sell-off is getting started or an august-buying opportunity. we'll get you to close on this tough market day. back in a moment.

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. >> welcome back. it was impressive to see the home builders trade higher on a valuation call there. >> miners have gone high with gold skyrocketing as well. the broad markets are under pressure. joining us to break down this day, david, it's always good to see you. >> good to see you. >> to what do you adistribute the sell-off today? >> exhaustion, i think people are squaring off their books as they get ready to go into the holiday. macy's and wal-mart, maria, did

not help. then around, you had three big positives, don't lose sight of those. pen, the manufacturing indices came in strong. e is europe, first time in six quarters, they had a positive gdp number. .3%, you annualize that, 1 money 2%. that's a big victory. >> emerging from the recession. >> finally n is the new claims, dropped to a 5.5 year low. you saw this to 320,000. so the fact that the markets sold off tells me people are taking some profits here. let the things drift downward then put some money to work. it's only the second time this year that we have been down in a month. you know that. >> bill. >> david, would you buy gold here? have we ever talked about that? have easked you that? woimd you buy gold? >> we have been a long-term

holder, bull on gold. we are gold bull, maria. >> you are a stock guy. >> we have recommended to buy the gold miners the junior gold miners. '04% is our waiting for that, bill. >> why buy gold here? what's the reasoning? >> you want to buy portfolio diversifier. if the market gets into instable. don't forgive, bill, maria, september is the worst month of the year, the last 61 years, september averages out to be the worst month of the year. >> for stocks? >> for stock, that's right. >> you need a hedge. so are you right here, do you want to take chips off the table or not? >> i think you got to be very nimble and get right back in. we would be edge edging towards buying some european stocks, maria. stay with the japan and in mexico, they presented, it's not perfect but a start of the energy opening up the energy

sector to foreign participation. love that, love mexico, love japan. okay. and you can buy high quality u.s. stocks. let it sell off a bit. >> the question is, do i want to take a side step here and raise some cash or not do anything going into this scary month of september you are talking about? >> naryia, i think you could definitely take some off the table. we have 8% in cash. normal as you know is 5%. so we're waiting for it to sell off. >> david, thank you very much. >> nice to see you. >> nice tie dd. >> thank you, william, coming from you, it's a real compliment. >> thank you, bill. we will come back with the closing countdown the dow is down 218 points. >> so what do you want to do, buy this sell-off or get away? bill bug dennis dpartman weighs in. you might be surprised at his answer. has the bull changed position? you will find out. >> we get earnings from dell, nordstrom, just out in a few

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100-day moving average. we'll keep an eye on that one. of more critical use to the traders, of course, they watch the s&p very carefully and it's been very close to its 50-day moving average. the number to watch is 1656. we are 5 points away from that 50-day moving average on the s&p. the nasdaq, of course, influenced by cisco. those numbers last night, cisco was down 7% at its low today, it's off that low now, nasdaq is down 63 points or 1.74%. then we get some more earnings tonight. we will have dell, which interestingly moved its earnings. it was supposed to report next tuesday. now it reports after the bell tonight. i'm not sure what that's about or what those numbers will look like. dell today has been down a fraction at $13.70. of course, we get more on the retail sector from nordstrom, which will be out after the bell tonight. that stock is down 26 cents,

maria. you have keith with you? >> yes, i do. keith is here to talk more as we approach the close. keith, we have a market down 215 points, does it feel this could continue into tomorrow's open or would you say this was an opportunity to get in? what's your take? >> it's a tough call to make because we have expiration tomorrow. it's anybody's guess what you have off the open. i tell you, i specifically look at the s&p moernlg the dow. believe it or not, we don't have the s&p at an oversold situation. it could go down another 40 points or so from here, we feel. it certainly feels like it will do that. that would put us as a pretty serious support level. i think we turn around from that point. a couple ought things we need to keep in mind, we look closely at the transports, they're close to a high degree of correlation between if transports and xps, something else i know you have been talking about in your areas, we will end with a hinden

berg. will be 3-0 and 5 august 6th. so there are signs that will tell us we will continue the downdraft here. whether it's happens tomorrow is everybody's guess. i see this market pulling back some more. >> the headline, we don't want to get too deep in the weeds. too many highs, too many lows, happening all at the same time. what do you expect to happen on expiration date tomorrow, pete? what kind of trading do you think? what's the bias will? you always see a lot of heavy volume on the opening, typically, exploration weeks are up in august. that's where you get the seasonality. the second and third week of august have typically been down weeks 60% of the time. i expect to see selling pressure continue. people don't like this market. it's felt heavy, it's amazing the difference in two weeks. it was clearly a bullish market. something we talked about. that was the posture. it turned. i think the bulls went ahead and wrote insurance to cover their long positions. they went to the hamptons, now the bears are taking control.

all thigh needed was a catalyst. we will take it down and test that support, 1640, scene 45 region. we will bounce off that and reevaluate for september. >> is there any good news volume is light, keith the volume is under 600 million here at the big board. does that give you an indication that perhaps you don't have full participation on a day the market is showing a 200-point sell-off? >> it's one of the things you get moves, if you have exaggerated moves, they will become more exaggerated, if you will. the light buying is they're in the season. they're evaluating this. the real traders, the serious money in the market and can bring these volumes, they've protected their positions. they're watching from the sidelines, once we get from them, they will step? . will be a nice opportunity. >> keith, thanks very much. i always appreciate your chents. i look forward to tomorrow.

up get the expiration of a lot of options in futures contract. maria, you have a lot of earnings that could set the tone. most intriguing would be dell. >> we will see you tomorrow. there's the closing bell. >> and it is 4:00 on wall street. do you know where your money is in hi, everybody, welcome back to "the closing bell." they have their dig i biggest one-day decline, take a look at the damage t. dow jones industrial average down 225 points. that's 1.5% on the dow t. nasdaq gave up 63 points the low of the day, 1.75%. nasdaq technology taking a hit. s&p technology down