ko this be the day that the fed finally hints at higher rates? hi, folks. we'll have a full breakdown an reaction heat. >> think try to rebound just a bit from the two-day shatter decline, and the s&p let's give to steve liesman right now. >> the federal reserve minutes say quantitative easing likely to end in october. there was some debate would it be a 10 and a? fed is say we'll likely do -- it has no -- participants did -- this exit strategy, decision of the minutes imply no immediate relax, no change at all to the plan they have enunciated. now, the fed continues to announce -- i don't have a monitor there. there we go. thank you very much.

is the fed's exit strategy. this is not agreed to. it's general agreement out there. the fed funds target -- continue and reinvestment along with or after the first fed rate hike and reduce investments gradually. here's technical stuff they're talking about. what they're going to talk about is interest on excess reserves will play a central role in the new policy that because they have this large balance sheet out there, reverse repos will play a supporting role, and then for you, fixed income folks out there, a 20 basis point spread would be appropriate, and reverse repos. they will communicate a policy later this year once they agreed to it. on the economy, the fed was surprised by the size of the q1 gdp decline, but they did see the economy rebounding in the second quarter. among the things they saw, future pickup? capital spending, and also consumer spending. several participants were concerned about soft retail spending along with soft housing recovery and soft residential

construction. several we are concerned about lower inflation in europe and japan. iraq and ukraine noted as possible downside risk. this has been ongoing for a long time, critical to policy, and the outlook many saying labor slack implies more slack in the economy than the official unemployment rate. several noting that long and short-term unemployment rates have both declined. that's the other side. some are suggesting that if the unemployment rate fall below normer to account for below norm an inflation. not a lot of concern with hyper-inflation there, just concerned about below trend inflation, while others expect faster inflation and more rapid decline in slack. these are very wishy-washy minutes, in the sense of agreement. however, they did take on critical issues that i think we're setting up -- the way i look at fed policy right now, they have one satellite in orbit, and that's the qe. they're very seriously preparing

for the next launch. >> it's an audi model. one at the present time is tapers, one it tightening. we knew that in october. >> they made it formal. >> you do the 10 or 5, 15. >> so one t is gone. what do we know about the other t? >> it's about discussion. they are places where there's general agreement. this is what's happening. they're not going to end the reinvestment strategy probably until they start hiking rates. and they're going to use interest on exit reserves as a main policy tool. >> stick around, steve. and also bob ruska, gentlemen, great to have you with us. what did you make of the minutes? >> the summary in one line? >> i think the markets continue on.

certainly from the market perspective, or that surprising. >> i would say clz a conflict in the fomc, but yellen is still in control. >> i was surprised by lacquer yesterday. they don't seem quite so hawkish, they don't seem like they're saying increase the taper pace right now, bump up the time period. i thought lacquer was very measured. how many months are there? >> i don't know. part of what's happening. at the time of this meeting, fed had the first cpi bulge in its pocket. it's sort of gone away. >> it's noise, says yellen. >> what happened was the pce report came out and the headline was up, that's not much of a

shortfall, but nobody is talking about that. >> >> for the report -- -- somebody is talking about it. >> but nobody is answering. >> if i may, let's change the dialogue, because the fed did. same thing, to your point. let me talk about inflation. i know this. i know that i will pay taxes, that i will die, and the fed at some point will raise rates. it's just a matter of when that happens. okay. >> i think you're right about the first two. the third one -- >> i hope you're wrong. so here's my point. we act like higher rates, we being the media, like they're the doom of everything. is it? we know rates are going to go up. should i sell stocks now because in two years i might pay 2% -- >> two years is a long time. >> i just threw that number out

there. >> two years is a long time, and we have history where both the equity markets as well as interest rates rise at the same time. i certainly see that as a possibility in the next couple years. i don't think it's a bad thing. >> the answer is why do they go up? if, for example, you have a pop in inflation, the fed has to act from behind the curve, and needs to step down on the economy, that's a bad reason, and that had be bad for equities. if, however, rates go up, then you don't have an issue. >> by big early, you run the big risk of obviously traveling all over, they worked so hard -- >> you just took reams of monetary policy, research and words and words that i've said and boiled it down to a single sentence. that is the fundamental basis. >> we're on the same page then, high-five. >> fundamental basis for policy, the fed would rather be late than early, period. >> but we figured it was too

late to be earl. >> if anything, so it's too late for the fed to be early. they might raise -- >> what's the bigger risk, then. is it and risk inflation, or to mandy's point, pull a 1933 and titan policy too soon. >> if you do it at the wrong speed, you could make enough those mistakes. they had a terrible first quarter, it looks like we're digging out. some of the employment numbers are starting to look better, but we've created like a million counts several other times, so you can't put this increased jop growth in the bag yet. >> the fed if you would a lame dennis yada yada on the first quarter. it was the first quarter was weak and yada yada, we don't understand. my impression was the fed

doesn't understand. i would say bob good money to understand what happened in the first quarter and they just glossed right over that as to whether or not that's an issue of continuing concern for policy. it was we had weak numbers, second quarter rebound. >> last word to you, what do we do? >> the fed will do nothing. they'll stay longer. >> but you get myopoint. things did okay in 1995. now it's basically zero, and we're terrified if it goes to one. >> there's nothing else to talk about, brian. that's the issue. >> but nothing consequential right now. the market is very, very finely tuned to the expectation of fed policy. it's fascinating the fed has the satellite in orbit, and general agreement with the markets about it, that this is an october/december this brian yawn on that info, with the next debate being what happens next

year. my point is like it's a three or four-month debate. i don't think anybody is out there saying january 2015. >> not yet. >> the bigger debate is what's the trajectory? what's the slope of increase? where do we en2015? >> that is the next conversation, which we have to unfortunately leave here, because we've run out of time. bob and steve, thank you very much. a very quick check on stocks. i mentioned, the s&p was up by 0.3, now up by 0.1, but now we're talking about minuscule moves mere and snapping back a bit from twot-day decline. guess what, brian, the zst from the record closing high. >> i wasn't the only one that yawned. there's a lot of other interesting stuff out there. trust me, there's a lot of interesting stuff. in fact, i'm going to make sense of this tease. are things so good with the consumer that they're bad for

retail? we'll make sends of that weird statement. >> i hope you do. are you martyr than a 15-year-old? they tested teens all around the world on the financial literacy. we'll tell you how the u.s. stacked up and see if you can pass the test. when "street signs" returns. ♪ during the cadillac summer's best event, lease this 2014 ats for around $299 a month and make this the summer of style. ♪ in a we believe outshining the competition tomorrow requires challenging your business inside and out today. at cognizant, we help forward-looking companies run better and run different - to give your customers every reason to keep looking for you.

so if you're ready to see opportunities and see them through, we say: let's get to work. because the future belongs to those who challenge the present.

yeah, citi mobile. pay the dog sitter? and deposit that check? citi mobile. pack your bathing suit? wearing it. niiice bank from almost anywhere with the citi mobile app.

police say shy even stepped over the body to finish a glass of wine. more details on this story on cnbc.com. switching gears, let's talk retail. are americans shopping until they drop or stuck in a funk? dominic chu takes us to the mall with winners and loser. >> let's look at our wall map here, a lot of retailers we scanned through. just to show you what the kind of -- i guess the dichotomy, the divergence in performance. you can see on the up side, big names on, michael kors up, respectable, also kate spade up but on the down side, there's still a lot of names that have been hit hard.

aeropostal down 63%, even coach, possibly a competitor, some would say, to a michael kors, michael kors is up, but coach is down 40%. lu lu lemon's got its own issues right now, but there's perhaps two names in the news so far that are really epitomizing this particular debate. one is williams sonoma, up 24% so far this year. this is a stock near report highs right now. it shows you that the high gent consumer discretionary for home furnishings and home goods is still fairly decent. restoration hardware perhaps a similar story, but then the container store reported earnings, and came out with perhaps one of the more dire forecasts for the coming months. the ceo basically said people are spending on big ticket items, but container store, williams snowstormo, two very different stories. back over to you. dom. >> thank you very much. let us now bring in contributor

jan rogers nippen. and herb greenberg. here's my theory, and it's going to sound insane things are so good for the consumer, it's bad for the retails. what i mean by this -- people got spooked yet, but if home sales are rising, car sales nearing $17 million, you're not buys other stuff. because ear saving money for the big stuff. things are so good, the jeans are out, the house is in. >> i don't disagree with that. we've seen it before. when you have higher payments, whether it's more on the iphone or more for a car payment, you don't buy sweaters, and so we've seen huge car sales, we've seen the replacement cycle on cars, and the same goes for houses, thee also doing the replacement cycle on things inside the houses.

as the consumer gets better at the lower end and they start seeing wage increases, you will see them, i think that's about to start for fall where we see wage increases with the lowerend consumer. i want to get to you, herb. remember in the first quarter, we saw all these companies, retailers particularly blaming the weather, now we're hearing things like it's the consumers' fault. >> well, then that gets to the sure of whether it is retailer specific. that's what's going to make it so interesting. now the container store setting

a bar saying there's a funk. what happens if the next big company to report says things are good. remember we had the last quarter, and chipotle came out and said, what weather issue? really try to unwhy one is doing better than the other. do you think using the word funk is trying to -- it sounds innocuous. we're in a bit of a funk, but don't worry, we'll get over it? >> i think that's the way they speak. the way they put it is for some darn reason. it's the texas nature of the way those guys talk. >> but i go back to what i was saying, guys, maybe you needed to buy container now you're just buying a bigger house.

that's my point. furniture, paint and law mowers, you don't go to macy's and get new jeans when you're buying a house, because you're spending money on the down payment. >> consumer spending has just been okay? >> about you on what? that's my point. >> and going to someplace other than discretionary. >> if you have a car that's 11 years old, i hope to god it's paid off. if not, you need to go to the financial literacy test right now. it doesn't mean you're struggling. it just means the money went elsewhere. itches but as we see growth in wage component of the business, right? when we see people making more individually, not just as a group, and we're about to see that start to happen, they start buying more discretionary items. that is about to happen, and that will still have winners and losers. it's not going -- herb will be right. the guys that execute well are going to win. the guys who like container

store are going to lose as well, by the way, jan, they don't say they're being hit by the enter net and actually made that point that they are weren't, but it goes back to something that dominic had said in his previous to all of this when he pointed out some of the companies whose stocks are doing well. you have tore careful here. you see a company like michael kors which i red flagged on reality check, and you say, wait a minute, if you do the field check. there's lots of promotions on their bags. is that a result of more competition from the likes of kate spade or others? is it the consumer? that's what makes this so confusing. >> or is it the fad slowing down? that, too. thank you very much. and one retailer, speaking

of that one wall street firm says will fall another 20% in the stock market, who and why, coming up. in today's market, a lot can happen in a second. with fidelity's guaranteed one-second trade execution, we route your order to up to 75 market centers to look for the best possible price, maybe even better than you expected. it's all part of our goal to execute your trade in one second. i'm derrick chan of fidelity investments. our one-second trade execution is one more innovative reason serious investors are choosing fidelity. call or click to open your fidelity account today.

the dow does look like it will avoid its first day losing streak. goldman sachs out with the 20 cheapest stocks list. so i'm going to give you three names that i think they're the top three cheapest. cabot oil & gas. delta air lines, michael kors. there's a new battle front in the grocery stores. your local farm, courtly reagan joins us with more. >> it's not just the urban foodies that's craving the straight from the farm options, but it's changing the way grocers are stocking their shelves. here at lucky in san francisco,

much of this proud came from nearby. it was stocked just days ago, and fresh has become so important, in fact, that lucky isn't passing along that premium price to the consumers, making sure they continue to come back. a pwc survey says that 67% of consumers note that competitive pricing is something that continuing to bring them back, but followed closely by the farm options. 47% like items that are fresh from the farm. while many believe there's always going to, randy evans says whole foods will have to start to bring the prices in line with competitors. everyone is moving into the organic fresh natural space. kroger's actually tops the list, and evans says that kroger is leading the charge when it comes to good prices and fresh selection. technology as well really

investing for the future, evans says it's leading the charge, leaving rivals to be chasing after it. in fact nielsen says it's grown 50 basis points in 18 areas of the country. when it comes to laggards, safeway seems to be one that has a lot of catching up to do, when it comes to relevancy in the fresh food market. and as the trend for fresh local food grows, goldman sachs says it's the local grocery stores that have seer shoppers more frequently than they are a year ago. when really the only thing constant in grocery is change. >> don't squeeze the kale, courtney. don't squeeze the kale. >> i'll do my best. how can you cash in on the fare to table movement? or can you? andy, a weird year for the super

market stocks, in fact the old style once, kroger, safeway, they're up nicely, where the newer while whole foods, fresh market, are getting crushed. how come? >> well, you're lead-in was right on. it's led by kroger, the biggest of the old-line supermarkets. kroger has spend the last ten years reinventing itself. i usually heard that word and it's sort of time to tune it out, but the truth is they have been. they've taken their pricing down over ten years so they're competitive with walmart. that means they've been gaining market share. when you start to gain market share, a lot of good things happen. really to the point of this interview, your food actually begins to get fresher, because it turns faster. whether you're sourcing it from a local farm or from across the country, you know, to a store in florida, if it's moving faster in your grossly aisles, so

kroger has reached its now kroger is becoming an excellent merchant in things like farm to shelf. >> and you've got a buy rating on kroger with a price tart of $56. but where does that leave whole foods in the fresh market, andy? >> we have holes in them, and did upgrade it, and frankly we yanged it and went back to a hold when we saw some very aggressive pricing. it's among the best super markets in the country, has really come into greater boston. we saw whole foods tang down pricing, that's a huge ked, and it was a prelude with what was to come. espinelly in produce for the

next few years out. that really scared away investors. that's why they like kroger. right now -- fresh market, they're pricing has been down. when you have -- that's not good for the stocks. >> andy wolf with a buy there. we do appreciate it. thank you very much. still ahead, a tale of two luxury retailers, including one stock that a weight firm thinks could drop 20%. >> remember this -- herb's shot -- whoa! whoa! >> he's going to be talk to talk shorts, but not those shorts. el'll be joining us on the other sigh of the break, with pants on, herb, please. when you run a business, you can't settle for slow.

that's why i always choose the fastest intern. the fastest printer. the fastest lunch. turkey club. the fastest pencil sharpener. the fastest elevator. the fastest speed dial. the fastest office plant. so why wouldn't i choose the fastest wifi? i would. switch to comcast business internet and get the fastest wifi included. comcast business. built for business. we've got to, as you can see, the ten-year yielding 2.559%. brian, would you like to do the honors? three minutes at 2:00 p.m. eastern, 2.595.

so we've dropped -- >> a little lower than yield. realtors and home buyers, so very, very happy. >> borrowers rejoice. sometime for "street talk" analysts recommendation. let's take a look. first of all, this is the stock you're talking about, right? this is coach getting a downgrade to underperform. >> buckingham research piling on an already wounded name. they think that dividend may be cut over the next year at coach, and they cut their target on coh to 28 from 32. folks, that's about 20% less than the price this morning. stock all right down 37% year to date, by the way the worst single performing stock in the s&p 500 this year. >> also stock number two, signet jewelers getting an upgrade. >> up nearly 3% on that. in fact they see about 14% up side. they say this -- the deal with zale's, they bought that, make signet well positioned for

position year the earnings growth. up nearly 60%. i thought people weren't buying anything. up nearly 60%. >> stock number three is wall street slashing ratings on gigamonday -- >> wrong ticker. >> d.a. davidson downgrading the company. they put a $13 on gig. more than five bucks from where the stock was. >> and symptom nub birr four is vm ware. >> vm ware. that is up, down 0.3 of 1%, saying that it will struggle to meet consensus expectations in the upcoming quarter. the stock has dropped nearly 12% in the past three months, down again today. a tough road for vmw. this is cadian network, it's a venter of -- >> not single core, don't insult

them. it's multicore processors. target for cavm about a 19% increase from where the stock is now. shares have soared already. the stock is up today, ticker cavm once more. there you go. here's kind of an unwritten rule, mandy of wall street, which you know. sometimes news that looks like good news on its face actually turns out to be bad news. this may be one of those times. the level of short selling in the market, betting stocks will fall hitting the lowest level since the fall of lehman brothers and the financial crisis. let's bring back in pants-wearing herb greenberg to talk more about this. on the one hand it's good. on the other hand, you can take the contrarian side. which side do you take? >> what gets squeezed fast falls even faster. when you have fewer shorts there, you end up with less of a buys, natural buyer in a buys cushion if stocks fall because

of bad news. so you end up with potential stocks falling in a vacuum in and when they do come off, and we've seen some of it. >> we've seen a lot of warnings come out of the hedge funds, but at the end of the day, it hasn't paid, has it, which is basically betting against the fed. >> that's the point. the fed makes is so easy, but in the end, you still have to have stock-picks prowess. instead of taking short positions, i suspect they're just going into cash, as what they believe is the safest way to do it. i was reading a report done by virginia tech about traders' brains and that people who are wealthy tended to be more nervous and sell when things went up, things who were not tended to buy more, explaining why bubble happens. it's swelling, herb, because isn't a level of skepticism a

healthy thing? i'd like to see more shorts come in, because it means that some people at least are thinking differently. >> well, you've got -- you know, absolutely, obviously. it makes sense, but in a market like this, especially when it's such a quote/unquote trading oriented market based on a news short cycle, people want to go with the flow, and then a day or two ago, people see that and freak out. then they get comfortable because it only lasted a day or two. look, we've seen it before, we're going to see it again, we know how it's going to end. you can say that, and then does it get in next week or next year? the fewer shorts that are there, the more dangerous it becomes, and the more sort of jaw-dropping it will be when all of the so-called smart people say don't worry, we'll handle it when and if the market comes unglued, because it will come unglued far faster than they expected. >> even the fed in their minutes said there's not enough investor uncertainty out there.

it's like everybody is so certainly of the outcome, it makes me nervous about the outcome. >> in the piece think bakley say it's a potential short squeeze. we're back to talking about that? by the way, short squeeze? where? where are the shorts? i guess there are individual companies with high short interest, and just as a little historical perspective, apparently the short interest was 5.5%. what is it now? about 2%. thank you, herb, as always. thank you very much. good to see you. >> great. >> as you said, good news is bad news. >> i'm too stressed. can you do this one? >> really? >> yeah, i'm so nervous. it's tyke to talk numbers. in particular salesforce.com. they did see a quite sell-off, but salesforce is down around 14% since hitting an all-time

high. it's been clobbered in particular in the past week. is the run done? or is this a buying opportunity? john coczar is on the technicals. on the fundamentals is dave see berg of cowan and company. good to see you, gentlemen. dave, the fundamentals of salesforce, please. >> i think this company they are dominating the space. there's virtually no comps for them. so, look, i mean, i look at them and say, i think analysts expect roughly 30% growth next year. why the sell-off? we know there's been a risk-off environment, concerns over earnings season, you know, concerns over maybe multiwall compression, but i look at this stock in the low 50s. this stock got down to roughly $50 a share, and then it bounced, we're basically around a 4 and change. i think it is a great level to look at the stock. it's a much -- it's a less

crowded trade than it was back when we saw that last grout. so i like them here. >> okay, john, fundamentally bullish look at crm, what's say the charts? >> the charts say for the near term, we've probably got more down side to go. the stock is trading at about 5 $55. i think we can go down to about $51, the trend line that started about a year ago. i'm concerned that we had that high in february, we came down to the aim lows and weren't able to make new highs, and we weren't able to hold the 20 day moving average. for a near term trade, i would wait for $351. if we break 51, we could end up back in the high 40s again, but i would not buy them here. >> two differing views, thank you, gentlemen. a remind you are for our listeners out there there's the online edition of talking numbers in partnership with yaw

hoon finance >> and we do three a day. it seems like all of america is talking soccer and the world cup. from a media perspective, is it a passing fad or here to say? >> good question. if you saw yesterday's show, you heard all about storming cadillac sales. today we're going to tell you about one luxury car maker that's literally on a roll. get it? ere are trading opportuns tdd#: 1-800-345-2550 just waiting to be found. tdd#: 1-800-345-2550 at schwab, we're here to help tdd#: 1-800-345-2550 bring what inspires you tdd#: 1-800-345-2550 out there... in here. tdd#: 1-800-345-2550 out there, tdd#: 1-800-345-2550 there are stocks on the move. tdd#: 1-800-345-2550 in here, streetsmart edge has tdd#: 1-800-345-2550 chart pattern recognition tdd#: 1-800-345-2550 which shows you which ones are bullish or bearish. tdd#: 1-800-345-2550 now, earn 300 commission-free online trades. tdd#: 1-800-345-2550 call 1-888-648-6021 tdd#: 1-800-345-2550 or go to schwab.com/trading to learn how. tdd#: 1-800-345-2550 our trading specialists can tdd#: 1-800-345-2550 help you set up your platform.

tdd#: 1-800-345-2550 because when your tools look the way you want tdd#: 1-800-345-2550 and work the way you think, you can trade at your best. tdd#: 1-800-345-2550 get it all with no trade minimum. tdd#: 1-800-345-2550 and only $8.95 a trade. tdd#: 1-800-345-2550 open an account and earn 300 commission-free online trades. tdd#: 1-800-345-2550 call 1-888-648-6021 to learn more. tdd#: 1-800-345-2550 so you can take charge tdd#: 1-800-345-2550 of your trading. really... so our business can be on at&t's network for $175 dollars a month? yup. all five of you for $175. our clients need a lot of attention. there's unlimited talk and text. we're working deals all day. you get 10 gigabytes of data to share. what about expansion potential? add a line anytime for 15 bucks a month. low dues... great terms... let's close. introducing at&t mobile share value plans... ...with our best-ever pricing for business. chocwhite chocolate loversal. don't like dark chocolate.

milk chocolate lovers don't necessarily like dark or white. before we couldn't really allow customers to customize their preferred chocolate. we needed a scalable cloud solution allowing them to select what they are looking for. now there is endless opportunity to indulge. customization is made with the ibm cloud. my motheit's delicious. toffee in the world. so now we've turned her toffee into a business. my goal was to take an idea and make it happen. i'm janet long and i formed my toffee company through legalzoom. i never really thought i would make money doing what i love. we created legalzoom to help people start their business and launch their dreams. go to legalzoom.com today and make your business dream a reality. at legalzoom.com we put the law on your side.

yeah, you've heard of flash mobs where people gather and do stuff like dance at the same time? well, this sadly is the same idea, but a lot more scary. it's being called a flash rob. a gang ran through the famous cop acabana beach grabbing anything of value. it also set out of a stampede. they did it during the soccer game. scary stuff from rio de janeiro. >> germany beating brazil 7-1, i think beating is putting it lightly. it was a disaster for brazil, let's be honest, but a huge hit for both traditional and social

media. everybody wins. julia, who in particular was boosted by this. >> take a look at espn arguably the biggest winner of world cup so star. they've broken all sort of ratings, which will boost the ad revenue at a usually slow time of the year. the big question is whether new soccer fans will make fox's $425 million payment for the next two world cups world while. it won't have the advantage of a convenient time zone and we'll see how far the u.s. team advances. when it comes to social media, the world cup has been the biggest event ever for both facebook and twitter. yesterday's game was the single giggest, with the highest tweet of any event ever. facebook is revealing brand-new

stats, telling me that over 300 million facebook users have had over 2 billion interactions about the world cup on its platfo platform. so who won the engagement battle? the people talking on facebook is bigger than twitter's whole user base. we'll have to see if the global conversation about soccer means that either facebook or twitter lured new users when they report earnings later this month. julia, thank you very much. rolls-royce just does something that it's never done before. robert franks, what did it do? >> rolls-royce correspondent, to tell you the best six months ever. they sold 1,968 cars worldwide, that's up 33% compared with the january/june period. there was strong growth in asia pacific. good job in the middle east, but here's the big shocker. in europe, the home of quiet wealth, demand was up 60%, with

sales doubling in germany, probably just doubled last night after all the people felt great. now that bmw owns it, it's cool to do that. a lot of this was because of the release of the wraith, the sporty rolls. it's only $285,000, that's a bargain with the phantom. again it's just fascinating when wealth is supposed to go quiet that the rolls are doing so well. >> you know people say the type of car that you drive says a lot -- what kind of person drives a rolls? >> somebody who is proud of their success. i'm just going to put it that way. >> what does a jeep say? >> that you're a man. i don't know. itches i appreciate that. >> that i like to burn carbon, because it's about 14 miles to the gallon in the wrangler. >> that you don't care about the planet. you don't like polar bears.

that's what it says. >> thanks, thanks a lot. the good, the bad, and the downright ugly in the market. plus 15-year-olds putting their smarts to the test. how the u.s. did in a moment's time, but first, we want to know how you would do. real this sample question. can you see it? but the answer when "street signs" returns. ♪

when the world moves, futures move first. learn futures from experienced pros with dedicated chats and daily live webinars. and trade with paper money to test-drive the market. all on thinkorswim from td ameritrade. in a we believe outshining the competition tomorrow requires challenging your business inside and out today. at cognizant, we help forward-looking companies run better and run different - to give your customers every reason to keep looking for you. so if you're ready to see opportunities and see them through, we say: let's get to work. because the future belongs to those who challenge the present.

bell," mr. mark farber. you know what he said earlier on this year the 2014 crash will be worse than 1987. so wonder if he's sticking to that gloom and doom prediction now. >> you bet he is. he still has six months year. a half a year. >> mr. doom and gloom for nothing. >> the fact we could be going through yet another one of these cycles where whether it's equities, commercial real estate, pick your asset bubble. it's the everything bubble and the message from the fed seems to be game on. >> we make light of a mark

faber, noriel rabini or permanent bears out there. they serve a purpose. they remind us that there is the possibility that things could go wrong and we head down in a big way. we'll talk to mark aboc about t. >> charles schumer is coming up on the program as well around 3:30. also all sorts of geopolitical issues. highway funding which they may do by tweaking pensions again. >> to give faber some credit, maybe the crash hasn't come but a few months ago he said social media stocks would tank and he would short them. especially viva systems. it's down 25% year to date. he's been right about that. >> but if you are always bearish, to the point you said the permabear syndrome. if you are always bearish, eventually you'll be right. >> i go there in the mall, the permabear shop.

>> i might go into the build-a-bear if they had -- >> it's made of lead. always falling to the ground. >> speaking of large animals, the elephant that got freed. >> i saw that on facebook. yes, i did weep like a child. it was -- >> was that before or after you read the story, though? >> bill and kelly. >> more coming up spe. see you at 3:00. >> it always starts as fun and games and always ends in tears. we asked you a question from a financial literacy quiz given to 15-year-olds in 18 countries around the world. firstly, i want to say, if you are wondering what a zed is. you can buy loose tomatoes for 2.75 zeds per kilogram or a box for 22 zeds for 10 kilograms. which is the better deal?

>> i don't like tomatoes. i eat tomatoes. clearly, a. >> the answer is, of course -- >> the fact that a lot of people could get it wrong is terrifying. >> 22 zeds for a 10 kilo box. the question is, how did the u.s. score? in the middle of the pack. china was number one. very good at math. colombia last. one alarming stat, 18% of u.s. kids could not reach a basic proficiency level on the test. let's bring in dan, the president of the financial literacy group. your disapointed with some of those findings? >> not shocked. we know we've got some financial literacy troubles in this country and we've been working hard to fix them. i think the big thing to come out of this for me is that we are in the middle of the pack but the pack isn't doing all that well either. a lot of these countries had some fairly modest scores and they were all kind of clumped

around the middle. i guess the biggest thing is we all need to do more in financial literacy in our homes and in our schools. >> you have credit card companies peddling credit cards. the college freshmen did to us. still see it. people are taking out these student loans. this is not just kind of a sad stat. it's dangerous. >> that's right. people need to be ready because the market is ready for them. and this is actually different from just maybe 30 years ago. back then we didn't have as many choices. we didn't have as many choices in credit cards and mortgages. you didn't have to manage your own pension. now all that's changed. we're in a situation where our choices have outpaced our knowledge and financial literacy is how we catch up. >> what did we do? what's the call to action here? >> the call to action is all of us have a role to play. certainly for youth, we've got to get involved in our schools. used to be a school board president in a previous life. we school board presidents listened to parents. parents need to make themselves

heard. only four states require financial literacy classes as a graduation requirement. >> did the students tested, the teams that were tested in those four state comes out better on the test? is it actually working? >> they didn't disaggregate it to that level. i wish they had. they might have in the future. but certainly having a good class increases the possibility of doing well. and not to throw it on the schools. teachers need training. there's no reason to think these teachers know any more than other american adults know about finances. so we need to adequately train the teachers and have classes on it, not just in high school but throughout curriculum, k through 12, like we do every other subject. >> a real pleasure on a serious topic. hopefully we can try to lift all boats here. we do appreciate it. >> i didn't ask if he likes tomatoes or tomatoes? coming up next, a whole new take on a plain pizza. moderate to severe crohn's disease is tough,

but i've managed.

♪ i got to be pretty good at managing my symptoms, except that managing my symptoms was all i was doing. ♪ when i finally told my doctor, he said my crohn's was not under control. ♪ he said humira is for adults like me who have tried other medications but still experience the symptoms of moderate to severe crohn's disease. and that in clinical studies, the majority of patients on humira saw significant symptom relief. and many achieved remission. [ female announcer ] humira can lower your ability to fight infections, including tuberculosis. serious, sometimes fatal infections and cancers, including lymphoma, have happened; as have blood, liver, and nervous system problems, serious allergic reactions, and new or worsening heart failure. before treatment, get tested for tb. tell your doctor if you've been to areas where certain fungal infections are common, and if you've had tb, hepatitis b, are prone to infections, or have flu-like symptoms or sores.

don't start humira if you have an infection. if you're still just managing your symptoms, ask your gastroenterologist about humira. with humira, remission is possible. take a look at the good, the bad and downright ugly stocks in this week's market. the good? petsmart. up 15% this month. investors hoping for a buyout. the bad, facebook down 2% along with a lot of other social media cousins. and downright ugly is first solar. to the down side this week. >> ain't no sunshine when she's gone.

a story that may redeem your faith in humanity or at least flying. a frontier airlines pilot ordered pizzas for passengers stranded on his plane in wyoming due to weather. got to give a shoutout to frontier airlines. nice work. also, though, the local dominos pizza who was just about ready to send their employees home but they stayed late and made 35 or so pizzas. they delivered them to the airport which then, shockingly, i don't know if they had to go through scanners or not, delivered the pizzas on to the plane so the passengers agitated and hungry, probably still agitated but no longer hungry. frontier airlines. >> big shout out to dominos, as well. let's take a look at the markets. let's bring up the board. the dow is up by about 78 points right now. the nasdaq up by 26. so what we've got is a baste rebound after what was maybe one of the sharpest two-day declines we've seen in some time. i'm not used to seeing declines

of this market. when was the last time there was anything that resembled a correction. doing fine after the minutes. >> the single worst performing stock right now is garmin down 6%. it can't find a buyer. garmin. thanks for watching "street signs," everybody. >> "closing bell" and mr. doom, bloom, gloom is next. welcome to "closing bell." i'm kelly evans at the new york stock exchange where traders are trying help break a two-day losing streak. so far having some success. >> still below 17,000, though. we've got green arrows, though, today. maybe short reprieve if one of our guests is correct. we have the doom and gloom author marc faber mean says the s&p is about to crash to the tune of about 30%. his call has been burning up cnbc.com today. but he'll join us live in a few minutes to talkor