younger demographics, those key ratings declined 10%. we'll have to see if they break from "breaking bad" beats them out. >> thank you very much. have a wonderful weekend. thank you for watching "street signs." >> "closing bell" is next. have a great weekend. see you monday. >> hi, everybody. happy friday. we enter the final stretch for the week. welcome to the "closing bell." i'm maria bartiromo at the new york stock exchange. >> i'm bill griffeth. five days left in this quarter. that's it. if you were watching this program yesterday, you may have known the market might have some trouble today. warren buffett and carl icahn said on "closing bell" yesterday they thought the market was looking fully valued. carl icahn was more bearish saying stocks were giving

investors a false picture of the economy right now. as we told you, we'll have a lot more on how this market is reacting on an expiration day. we also have a re-balancing of the standard & poor's 500. kind of technical but it can have an impact on the markets. >> volume at higher levels than we typically see at this time of the day. >> we'll be speaking with fortress investment group's michael novogratz, hedge fund legend here at 4:00. we'll get his take on the market, what he's buying now and a lot more. coming up, my interview with st. louis federal reserve president, james bullard? he voted against the tapering. he also told me there's a chance we could see tapering in october. you'll want to hear more about that in that conversation. >> and what he told you has been moving markets today. we'll get the full picture coming up. apple stock holding steady for

now but how are sales doing for the new 5s and 5c? folks were lining up as usual, but is it the kind of frenzy apple is used to seeing? we'll go live to the flagship store in new york city and reported on a push from some groups to begin hacking the phone. they buy the phones today, take them back to the labs and try and figure out how they can hack them right now. there's actually a competition for who can hack it first. i mean, we can't make this stuff up. >> you can't. we have a developing story right now, bill. blackberry shares are halted. news pending. take a look at where we're standing with blackberry. ahead of the halting as you can see, the stock was bouncing off the lows of the day. >> remember, they have put themselves up for sale. they've been lining up bidders. talk is they're looking at bidders who want to buy pieces of the company, not the whole company as a group. we'll see what this news is all about.

>> news is pending. markets with a triple digit decline. dow down 110 points, bouncing off the closest low of the trading stegs, 15,526 after hitting an all-time high earlier if week. nasdaq, a decline of 5.75. it's also bouncing off the lows but no scars. still in negative columns. s&p down 800 point at 1713. >> stocks struggling as the fed afterglow turned out to be short lived. we've given up the gains from wednesday. what's going on? >> can't blame it on interest rates. the s&p drifting lower. tuesday, the s&p was 1703 so we're a little higher at 2:00 on wednesday when the fed announcement was made, but not much. by about ten points, as you can see here. what's going on? i want to comment quickly because people keep asking about

market headwind we're facing and how serious are they. on the uncertainty in washington, my sense is this is a little overstated. a government shutdown, debt ceiling. i know there are issues. i think we'll probably get through them without a government shutdown or at least a short one. as for the taper, look, i'm as confused as everybody else, but the thing that i would note here is the range of actions are very narrow here. it's either no taper through the year or taper light. what i would do is try to follow the data and not the taper because it's making everybody crazy. there's my two cents on this. i want to remind you, we'll have a lot of fireworks at the close today. a couple of things are happening. there's going to be an s&p re-weighting. companies that make changes in their float each quarter increase or decreate weighting in the s&p 500. here's the big ones to watch. apple has got a reduction, it's weighting. disney has one, too. google has a big addition. it's going to increase weighting in the s&p.

so is general motors. stocks, two of them trade down here. we'll keep an eye on that. want to note the changes in the dow are today. three stocks are going in. goldman, visa, nike. three are going out. we'll see all here in companies indexed to the dow jones industrial average and have to change the weighting around. that will create volume at the close. bill and maria, i'm not entirely sure, but this might be the biggest volume day of the year. it's going to be one of them. i think it will probably be at the close. the gain is to make changes in indexes and not materially change the prices. we'll see if that happens here. this is the game here. that's a lot of stuff for the market to deal with at the close. >> we're still looking at gains on the week. that's a positive. joining us, stephanie, ken mahoney, jim lowell from adviser investments and our own rick santelli. thanks for joining us.

stephanie, let me kick this off with you. what's your take post no taper. how do you want to allocate? >> i think september will continue to be a volatile month. we had to get through a lot of things. so far we've gotten through syria, fmoc, the fed chair, we might have a decision that janet yellen will be running the fed. we got true three out of four. we still have to get through washington. with markets up 10% from the june levels, i think expectations are obviously pretty high. i still like the market. i think volatility, though, is going to remain, especially for the next ten days. we have a little extra cash on hand. but the fed basically just said, rates are staying low, data-dependent. let's keep an eye on the data. i think you want to own cycli l cyclica cyclicals, technology and some financials. >> ken, what are you doing with this market right now? we've had so many cross-currents lately. the situation in syria, the deal

with the debt ceiling, now the house passing the defunning of obama care as part of resolution, the fed. what do do you with your money? >> you have a lot of cross-currents going on right now. at the end of the day you have the has and has notes of the marketplace. aggressive investors seeking out high beta stocks, biotechnology, and be rewarded for it. have nots are conservative investors, in bond funds. you're seeing some people come out of the bond into stocks. investors love chasing performance. i think momentum will help out stocks. >> you think when they get the quarterly statement, you see how badly their bond funds did -- >> i don't think they gave weight to statements. i think they click online. i think we'll see in favor of stocks. >> we'll see if the money comes

out of bond as it has this summer and finds a home in stocks. we have been waiting for this great rotation that has not occurred yet. jim, what do you think of that? do you think we'll see an increasing exposure to equities post the federal reserve in action? >> i bet we already will, maria. the reality is those that opted out have missed out on a remarkable rally. i don't think they'll make the same mistake by staying in bonds. those telling them to abandon bonds are doing a disservice. they need to find a better way to manage the income side of your portfolio. simply abandoning bonds at any price, for any reason, doesn't make a lot of sense to me. >> yeah. a lot of fed speak today, hawk on the fed, george and then jim bullards comments to maria, hinting maybe we get a tapering next month some time. what do you think of that? is the market responding as

such, do you think? >> most people on this floor would argue what happened on wednesday, they would think the next fed chairman will have the responsibility of the grand exit, trying to figure out how to get us back from mars and maybe more importantly, trying to slow down if not halt some crisis-surviving programs. as far as all the other issues, we continue to see -- the guest you just spoke with is correct. it isn't about logic. markets don't need to subscribe to logic. i think that dynamic will stay in place and it will continue to wear down position. i think it will be consistent liquidation. >> i want to get your take on st. louis president of federal reserve james bullard told me today. he said, there could be a taper

in october. he also said this about how much the employment picture played into the fed's decision not to move this week. he mentioned the participation rate. listen to this. >> one of the things about the recent report, the recent employment report, is that unemployment went down but labor force participation went down. so, it kind of went down for the wrong reason. i think that weighed on the committee's mind as well. >> rick santelli, we discussed this just this week, or last week, about the participation rate. what's your reaction? what's it going to take to move the needle on the participation rate? >> hey, i've had about 5 million observations that have said that over the last three years. i guess in the end, i thank him for speak more honestly about the dynamics of employment and unemployment. beyond, that we are not in a crisis. the fed is doubling down on an ineffective strategy. i don't care how many academics, it isn't the ground.

>> all right, guys. thank you all. stephanie, as well. >> meanwhile, if you think jpmorgan's nearly $1 billion worth of settlements with regularities this week was the end of ceo jamie dimon's problems. think again. kayla, watching jpm. >> that nearly $1 billion settlement didn't include one key regularity and that's the commodity futures trading organization. dimon said they thought about bringing a lawsuit against the ground and sources on the ground say jpmorgan manipulated marks. dimon has until monday to respond or settle. a settlement is unlikely because that means they would have to agree to manipulation. the anti-manipulation rule in

dold/frank makes it unlawful to manipulate markets intentionally or recklessly. meaning jpmorgan didn't have to knowingly dislocate those, they say the trades swelled could create recklessness. they say betting against london whale who got that moniker because the trade was so large was a no-brainer since it was easy to spot the mispricing. the london whale struck a deal with prosecutors and didn't have to plead guilty. two others have been charged criminally by new york southern district. a spokesman for jpmorgan declined to comment. the lawsuit has not been approved by the cftc. just to the commissioner level. >> thanks very much. the last word there. you wonder what the end game here is for regulators and jamie

dimon and jpmorgan. >> they definitely have him in their sights. >> yes. >> we have blackberry in our sights. shares have been halted for a few minutes pending news. don't know what the news is. we'll wait for that. it's interesting it's on a friday afternoon. this is a stock that put itself up for sale recently. we've been hearing that the bidders that have stepped forward aren't interested in buying the whole thing, just pieces. maybe we'll get clarification on that coming up. right now, the stock down 2.3% in halt mode. meantime, stock market continues lower. dow down 119 points on a very heavy volume day because it is expiration daye day here as well. >> cleveland clinic, one of the leading institutions in health care, cutting jobs to prepare for the health care legislation. up next, find out from ceo toby cosgrove why they feel they need to do that. >> then the dow will never look the same again. starting monday, it's out with the old, in with the new.

as three stocks are swapped from the index. how should you prepare? we have that and much more coming up on the "closing bell." ♪ ♪ [ female announcer ] you're the boss of your life. in charge of long weekends and longer retirements. ♪ ask your financial professional how lincoln financial can help you take charge of your future. ♪

welcome back. even though we're on a down day, one of the bright spots on wall street have been the health insurer as government sponsored insurance exchanges get set to roll out on october 1st. a new software glitch is reportedly making it extremely difficult to determine the amount of subsidies individuals are eligible for under the new rules. bertha has details on that. also a move from home depot, which is preparing for the law as well. >> hard to believe we have ten days until the end of obama care open enrollment and lots of changes. home depot telling their part-time workers they have to buy coverage on obama care exchanges from now on. this affects about 20,000 part-part-time employees who take up the company's mini meds

low cost catastrophic plans but those mrandz don't meet affordable care act standards because they don't offer preventive services, required by law. they set up a hot line to help employees make that exchange. trader joe's is also doing the same with part-time workers. mini medicine are popular with retailers and fast food chains, like mcdonald's. we'll hear more about these in coming days. there's still questions about the readiness of the exchanges themselves with just a week to go. wall street journal citing an unnamed sort say software glitches making it difficult to establish the pricing and eligibility. a jpmorgan analyst cited similar

rumbles this week. a source for the health department told me this is what testing is expected to show. and they think that it will be ready and up on time for october 1st. >> thank you so much. break news on blackberry. the stock has been halted on news pending. let's get to seema. >> blackberry announcing preliminary second quarter fiscal 2014 results. blackberry was expected to report results next friday. here are the numbers. they see q2 loss of 47 to 51 cents ex-items. revenue see revenue seems to be coming in short of expectations. nearly half of what the street was expecting. so, that is why shares were initially halted. you can see the stock down about 2%. maria, back to you. >> we're going to watch the stock. it's still halted. as soon as that stock opens, we'll go back and give you the

more -- continued details on the blackberry story. meanwhile yesterday, the renowned cleveland clinic announced it would cut jobs and cut about 5% from its budget to prepare for the new health care law. joining me now to explain why, talk more about the environment is the ceo of the cleveland clinic, dr. toby cosgrove. good to have you on the program. >> thanks marks rhea. >> can you walk through how you've been preparing for the legislation, the cuts and what the new norm looks like for the cleveland clinic. >> we've been talking about for years reducing the cost of health care. we took $100 million out of purchasing last year. we reduced the number of redundant tests. we improved our quality so we had fewer xliction but we know get going into this next year a number of factors will affect us. first is, insurance companies are reducing the amount of payment to us. and expecting more difficult

contracts. the second thing is, we don't have any medicaid expansion in the state of ohio. thirdly, we know that medicaid -- medicare is reducing its payments slightly. all of these combined make us realize that we have a shortfall in our expected revenues. we think we need to cut about $330 million from our expenses. we can't do it all by reducing the waste and increasing the efficiency. so, unfortunately, it has to have reduction in people. that's about 60% of our expenses. we will be offering early retirement to some 3,000 employees and expecting to get about 1,000 to accept. >> right. you know, when you look across corporate america, toebby, we speak to ceos all the time, a similar song, ibm changing retirement programs or getting

rid of spouse coverage. corporate america is preparing for the new legislation. this cannot be what the white house wanted when they first came out with this legislation. what would have been a better path, toby? this is not just the cleveland clinic. this is across business here. what is the surprise that people did not account for? and why is this so own russ for business. >> it's almost a patriotic duty to bring down our rate of inflakes of health care. we've been working on that for a long time. it's not totally related to change in health care law. it's related to pressures from business, pressures from all the way around to reduce the cost of health care. so, we are looking at this as a change in the entire ecosystem of the health care industry. >> the president has tauted the cleveland clinic on a number of

occasions. i want to get your take on this sound bite from president obama, because your institution has been the ones to set the tone. listen to this. >> the reason i visited the cleveland clinic, along with the mayo clinic, they have been able to drive down costs more than any other health care system out there, while maintaining some of the highest quality. >> so at cleveland clinic, one of the best health care systems in the world, they actually provide great care, cheaper than average. >> so, how do you keep doing that, toby? by the way, did you alert the white house ahead of your announcement yesterday you would be cutting jobs? did you alert the white house? >> we didn't alert the white house. we alerted people in this area of the world that will be most affected by this. we think we can still provide great quality care, in fact, but

we need to change how we deliver that care and make it more efficient. and we have to put more emphasis on wellness and keep people healthy over the long pull so we don't have to expand heavily on them. >> does the affordable care act improve or worsen the financial outlook for health care in america? >> we can't really say yet because it's not -- all of it is not understood. implications are not understood. we don't know how many people will sign up for the exchanges. it's not possible for us to understand at this point or predict. there is tremendous anxiety across the entire health care industry right now to try and understand exactly what these changes are going to make. we can't -- we'll have to wait and see. >> which is why businesses are sitting on cash. because they don't have the specifics on it. you say you have to change the way you deliver care. cleveland clinic is known for innovation and marriage of health care and technology. technology changing so much. how do you change delivering care, real quick?

>> one thing we're going to do is use more distant health. we found out a way with time warner we can view patients at home over their television and talk to them. we've also had ability to use cabinets we can put in remote locations for telemedicine which is a great way to bring care to remote locations and even bring it into factories in an inexpensive, efficient sort of way. >> i love that. you deal with time warner, you'll be dealing with patients through the tv and diagnosing that way. technology is a game-changer. you know i love this subject. it's just terrific to see the innovation. good to have you on the program. see you soon. >> nice to talk to you. >> toby cosgrove, ceo at the cleveland clinic. >> we're getting word now they're going to reopen shares of blackberry. it's been halted for about 20 minutes now. they announced earnings, as you heard from seema, a pretty good loss. we'll wait to see what the

expectation is from that stock as it reopens again in about ten minutes at 3:35 eastern time. meantime, we're heading lower for the stock market. a lot going on today in this last half hour of trading as we have expiration of options and futures. we have a relali rebalancing ofp 500 index. more volatility as we head to the close. bit coins and alcohol are prizes offered to the first person who can figure out how to hack into apple's new fingerprint technology. we'll hear from a hacker who will tell us just how easy or hard it may be to crack that new security system. what you hear, may price you. also, it's the end of the dow as we know it. but we still feel fine. part of the change, bank of america out. goldman sachs in. which stock is the better buy for your portfolio right now? we'll look at the chart and do the numbers when we come back. tu orville and wilbur...

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we're getting more details with what's going on with blackberry. that stock is still halted. let's get back to seema. the earnings with a loss and now layoffs? >> blackberry reporting preliminary fiscal quarter results. it sees a q2 loss of 47 to 51 cents ex-items coming in below street expectations.

q2 revenue of $1.6 billion, below expectations of $3 billion 37 it's citing a pretax inventory charge of $930 to $936 million. cash on books also decreasing. it's gone down from 3.1 billion to $2.6 billion. also announcing restructuring plans, including reduction of approximately 4500 employees, part of a plan to cut expenses in half. we're expecting shares of blackberry to reopen at 3:35 p.m. eastern, in about five minutes from now. maria and bill? >> thanks so much. we'll get reaction to all of this from collin gillis of bcg financial. he's on the phone with us right now. what's your reaction to this? the stock was halted. we have the news. company coming out with those results as well as announcing they will lay off 40% of the global workforce. that's 4500 employees.

what's your take? >> this is brutal. this is the quarter where the company flew off the cliff. the revenue numbers, half of what people were expecting, shipment of phones, the new ten phones, have just plummeted. they jammed their channels. what blackberry is finally doing is what they needed to do. they're scaling down and becoming a niche player. >> we know they're up for sale. are you hearing anything? we've heard bidders are stup-e stepping up but they want pieces of the company. they don't want to buy the whole thing. do you think there's any coincidence to the timing of the earnings report they're coming out a week early? is there a sense of urgency with the sale? what's going on here? >> that's a great point, bill. i think what i take from this is that they are preparing themselves to go forward if no bid emerges. the only go forward pass for the company is to be a much smaller, trimmed down niche player focused on the enterprise

segment. >> can they compete as a smaller niche players? you have other companies eating their lunch? the enterprise area is even more competitive. >> you know, and -- there's a chance for it. it's their only chance. keep reducing cost base, their enterprise system software is widely respected. they still sold 3.7 million of the seven phones even though they're not recognizing the ten phones. the headlines on this report, to be fair, are actually worse than once you dig into the details. >> sema, you've been following this story all along. we all talked about our blackberries. many copies have been holding back, waiting to see if there will be a company to support their purchase much new blackberrys. that itself is becoming a self-fulfilling prophecy for this company, isn't it? >> that's right. there is a customer out there who enjoys that physical keyboard. blackberry one of the few

players that actually offers that gives them somewhat of a competitive advantage. it's been a volatile stock to follow since early august when they announced they would be evaluating strategic alternatives. there have been reports they are looking for a buyer, perhaps fairfax financial, that's been speculated as a potential buyer. they are stakeholders in blackberry. there's been reports of perhaps a larger tech firm like microsoft, or la notice voe, a company that wants to strengthen their footing in the smartphone space. buyout speculation has brought the stock up as well as down. recently there have been reports there has been a lack of excitement around, perhaps, making a bid on shares of blackberry. >> do you buy into that, any firms potentially acquiring blackberry? what are they acquiring? when you have a sell rating, 40% of the workforce, now, you know, being let go. is this the beginning of the end for this company?

>> for those investing in the name on the base they may get a takeover, we also suggest a takeunder is also a possibility. look at the business trends. not healthy for the company. if there's any potential buyer out there, the more they wait, the more attractive the price. the only thing they have going for them is there are a lot of u.s. companies with big piles of offshore cash. they may want to get access into that enterprise customer base and into that portfolio. >> what's the stock worth? you've got a sell on it. it's at $10 right now. we're waiting for it to open in another 45 seconds, if the schedule holds. what are your expectations? >> i'm on a $7 target with residual value to their services business. >> i see. they couldn't be selling any of that right now unless they were planning on folding up shop. that's the most valuable part of the business, right? the patents? >> the patents and services business. people assign a negative value

to the handset business because to shut it down it will incur quite a bit of costs as we see the company doing over the next few quarters. >> what do you think is going to happen? >> one of two things. either make it as a niche player or be a takeunder scenario where somebody comes in and scoops up. >> can they sell off the handset part? is it -- it's open. >> a lot closer to my $7 than an hour ago. >> down 20% right now. roughly that, $8.50. if you're just joining us, blackberry, a week earlier than expected, announcing preliminary results for the latest quarter, which disappointed. a big loss. they announced a layoff of 40% of their global workforce, or about 4500 people. >> the stock here at $8.72 a share, collin. if you're at home and a holder of this stock or institution holding this stock, what do you

do now? >> i have a sell rating on it. several quarters of difficulty still in front of you with a lot of question marks. the company is likely to burn into its cash balance. $2.6 billion. that's been the number people look at as saying they still have a chance. as they continue to burn through their cash, the layoffs, it gets smaller, the path forward continues to get darker. >> stock down 20%. quickly, maybe you're not the guy to ask, we should ask blackberry, but we all have blackberries here. what do we do with them? >> put them in the drawer and get an iphone. >> do you have a blackberry? >> i do not. i gave mine up a long time ago. come o who wants to carry two devices around? >> you're absolutely right. collin, thank you very much. appreciate that. the stock is at lows here, as you can see. blackberry down 21% here. and the market also down at the

lows of the day. we knew there was a buy to the sell side, but a lot of it was pared. we'll see what happens in the final few minutes. lows of the day. >> expiration day on wall street as we continue to watch blackberry trend lower, down about 23%. the overall market is expiration day, so we'll see volatility. there's going to be a lot of buying and selling at the close today as portfolios are rebalanced for the s&p 500 index. down 147 points right now. when we come back, much more on blackberry and whether or not this is a death nail for the company. what's going on right now? things i prefer to do on my own. but when it comes to investing, i just think it's better to work with someone. someone you feel you can really partner with. unfortunately, i've found that some brokerage firms don't always encourage that kind of relationship. that's why i stopped working at the old brokerage,

and started working for charles schwab. avo: what kind of financial consultant are you looking for? talk to us today.

welcome back. we have a fluid situation here as we watch blackberry shares plummet. the stock is down 21%. we told you moments ago the company announcing it's cutting 21% of its global workforce, 4500 people. announced preliminary results. let's get to seema right now. the stock is plummeting. >> it is, down 21%, after preliminary second quarter fiscal result.

q2 earnings and revenue coming in below what the street had anticipated. they would report next friday. that's when blackberry was expected to report earnings. the company citing increased competition in the smartphone space. there have been reports specifically from idc that shows blackberry has about a 3% share in the smartphone market. so, clearly, it has been a struggling road for blackberry. the stock down now about 23%. the company also announcing restructuring plans, as we pointed out, reducing its stock by around 4500 employees. back to you. >> thank you. we want to get more on blackberry. joining us on the telephone is david garrity. your day on the news of the day, which is blackberry. these layoffs and this preliminary report. what to do now for blackberry? >> if you're already short the stock, the question is, where do you cover? the question about covering is what is the actual value on intellectual property portfolio that blackberry has?

i would say the value on that portfolio may between $5 to $6 a share. from that standpoint, where we're trading now ahead of the close, obviously there's a bit more downside i think you'll see on monday. in the meanwhile, it's a commercial property portfolio will be of value to somebody. the question is, somebody like google that decides to step up and beef up a portfolio they beefed up with motorola devices business a couple years ago? obviously, things in terms of the handset, the wireless patent portfolio have been stepped up with microsoft's acquisition in nokia. the question here is, is google going to respond? >> it's selling at $8 a share now. is there a price where it would make sense for somebody to step up and buy this whole company here, david? >> if you can buy it at a discount, the $5 to $6 level, it trades up, it's worth a buy. >> they'll buy the intellectual

property, the enterprise business. is there any value in the handset business at all? >> in a word, no. >> why? people are still using -- >> look, what we've seen in terms of the write-off they've taken on the portfolio, they don't come off a quarter after you revamped your product line and take a $1 billion write-off and say there's value in the product line, unless they mark the prices down by 50%, which then just ruins the economic business model for that part of the company. >> so, okay, this sounds like a naive question, but are we talking about the end game of blackberry as we know it? >> today's announcement brought the end came closer. if this was a test game, we've gone past the open a long time ago. we celebrated to the midgame, we're in the end game. >> that's extraordinary. what happened here? how did this company lose so much value and so much expertise versus an apple or an android? what happened? >> i think the real focus is historically blackberry has been

with the enterprise. they made a decision a few years ago they wanted to pursue two markets, enterprise as well as consumers. i think in the process of building up their focus on the consumer side of the market, they lost focus on what it was their enterprise customers were really looking for. in response -- and even in the midst of all that, they sell behind in term of their technology development and product cycles and they lost out substantially to the likes of android on the low end of the market, google, and then also apple on the high end of the market. >> yeah, they did just the opposite of apple, going after the consumer, and then they found themselves in the enterprise business after that. david, thank you for your insights on this. >> thank you. >> would he see it down 22% right now. that's about the low of the session. after announcing the big loss and the big layoffs for blackberry. getting to about 15 minutes left in the trading session on an otherwise busy day anyway for the markets, with the expiration of options and futures coming up and the rebalancing the s&p 500. the dow is off the lows. down 137 right now.

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bob pa sisani, what do we have between now and the bell? >> major rebalancing of the s&p 500, including general electric -- excuse me, general motors. we're also going to see three dow stocks out and three joining now. goldman sachs. you'll see action on the floor and right before the close, we can walk around and see what's going on. take a look at the s&p 500, sitting near the lows of the day. something that's important for today, you can't blame it on high interest rates or interest rates going up. the ten-year isn't doing that much. put up a ten-year yield here. you'll see, that's not a major factor. concern about mr. bullard saying, we'll concerned. interest-rate sensitive. those stocks moved up earlier in the week and are down today. so, it's a very confusing situation. washington does affect stocks. take a look at defense names. rockwell collins, lowered their

earnings and guidance. their assumption, sequestration is here to stay. that was from the ceo. there's a way washington is definitely affecteding the stock market, although many aerospace stocks have had a fabulous year on the commercial side. not the defense side. back to you. >> thank you, bob. art cashin just came back. to give you an idea of what's gone on in the last few minutes. just in the last few minutes you have $4 billion worth of stock to buy coming to market and $4 billion worth of stock to sell coming to market. so, we're going to see a huge swing in volume coming up in a little bit here. >> because it's pared off, you may not see a big move in the prices. we have a market down 150 points with just about 11 minutes before the "closing bell" sounds for the week. >> don't look now, but stocks are lower for a second straight day. are we finally starting to see the long-anticipated pullback? carl icahn and warren buffett are concerned. should you be? [ driver ] today, my ambulance knew all about a bike accident, just by talking to a helmet. it grabbed the patient's record before we even picked him up.

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about eight minutes left in the market. off the session lows. >> rich peterson and david from morgan stanley wealth management. good to see you. lots of action at the close. what do you want to do with the

market down 144 points, with all this nervousness over the month of september? >> all year long we've wanted to see a pull back to put more money to work. we've been stymied in that effort. >> is this it? >> you lost the three ss. no summers, no slackening in the tapering, no slackening, and no syria. no ss. that's why the market -- let the market settle down here and buy stocks. we think it's because of the absence of a bear case, not that the bull case or the base case is doing really well. they're taking away the negatives, maria. >> typically september is the toughest month for the stock market. this has turned out to be the best best month of the year, rich. >> going into the fourth quarter, since 2000, the fourth quarter has averaged about 2.7% for the s&p 500. but david just said, there were no ss. there are plenty of ss. we got shutdown, we got slowdown, and we got smackdown. >> there you go. we've got one building right

here. >> we've got a slowdown in corporate earnings. looking for 3.5%, 3.7% growth in earnings compared to 5% in second quarter. we got a potential shutdown of the federal government. there's no harmony with parties in washington. and smackdown is revig rated s.e.c. looking to prosecute and persecute companies. >> so you're saying no surprise we've got this selloff? >> no. >> my question is, earnings, what does the third quarter look like today with only a week before the quarter ends? >> again, we're looking at 3.8% year-over-year earnings for third quarter. with we're seeing a decline expected in energy and financials. >> how about revenue? >> revenue will be flat again. we're looking -- from the bigger picture on a forward basis, we're looking at record earnings. back at taper talk on may 22nd, the pe for the s&p was 16. now it's 16.4. even though prices are high,

they're not expensive. >> i would be remiss, ladies and gentlemen, i would be remiss. the japanese hedged equity index. that thing is up 11% this month. double what the s&p 500 is up, 5%. it's up 11% this month. it's up 34% for the year. it's been a wonderful call. people who follow the advice on this show -- >> you mean you. you recommend it. >> you and me. >> oh, that's right. >> you and me. >> when we get the tapering, is that the time to bail out of this market? >> bill, i hope the tapering comes when it means the economy's doing what the fed said it has to be doing. employment growth, retail sales, they haven't been there. retail sales, consumer confidence. next friday you get the consumer income and consumer spending. both of those expected to be up 0.4 and 0.5. that would be good news if that happened. >> regarding tapering, in the past four years, fed balance

sheet has grown to $3.5 billion. a year from now, september 2014, the fed balance sheet will probably be over $4 trillion. the fact -- >> so, you're on the sidelines on the u.s. buying japan. you're saying things are slowing down. guys, thanks so much. >> we'll come back with the closing countdown. plus more on the huge decline in blackberry shares right now. >> 23% lower here. after the bell, don't miss my interview with the head of liquid markets for fortress investment group, michael novogratz. does he agree with icahn and buffette? has never been our priority. our priority is, was and always will be serving you, the american people. so we improved priority mail flat rate to give you a more reliable way to ship. now with tracking up to eleven scans, specified delivery dates, and free insurance up to $50 all for the same low rate.

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...you'll bust your brain box. ♪ all on thinkorswim from td ameritrade. ♪ a minute left. the dows at the lows of the session, down 156 points. down 1% to finish the week out. quick on blackberry, reporting a loss a week earlier than anticipated and a layoff of 40% of their workforce. peter costa, we have this huge rebalancing but a very good month of september. is this an aberration today? >> i think it's a bit of an aberration. it's in response to bullard's response. that wasn't positive. but if them tapering, that means the economy is getting better. so that wasn't a bad thing. i'm all for tapering. >> you're going to hang in

there? >> yes. i have no problem with this. >> i know you have rebalancing to do. thanks for taking a moment with us as we head out. the dow setting lows for the session, closing out a tough couple of days here. stick around. you will hear what fed head james bullard said to maria about the tapering coming up on the second hour of the "closing bell." have a good weekend. >> it is 4:00 on wall street. do you know where your money is? hi, everybody, welcome back to "closing bell." stocks plunging today but we're ending in the green. market down at the lows of the session at the end of the day. down 170 points, rebalancing, heavy volume at the close. 15,46 7 as industrial average settles out at more than a billion shares traded at the big board. nasdaq down 15 points, a third of the