a lot about in the past. >> let's do final trades, yours is going to be whole foods today which we spoke about yesterday. you bought more this morning. >> yeah, stocks had a nice rally on a good quarter. >> hk. >> okay. >> kkl. >> sell tarkt. >> have a great day. power begins now. scott, thank you very much. developing story today, the market has been developing all day long. stocks falling very sharply, we are on the floor of the new york stock exchange, from the nasdaq, and always at post 9. sue. >> it is an ugly day. let's look at the numbers. get you up to date right now. the dow is down 208 points on the tradings session. that's a one and a quarter percent loss. s&p, 1.5%. down 28 points. nasdaq is close to the biggest percentage loser. not quite. it's done 75 points, but what's

catching a lot of people's attention is the broader based russell which is down 2% or 21 points on the trading session. the oil market, last trade on oil is on brent crude down 89 cents. gold is down 13 bucks on the trading session. the yield on the ten year note is 237b9 552%. over in europe. very ugly day. down 43 points. in germany, lost almost 2%. and in france, paris, finished down 1.5% on the trading session. why is market falling? a couple reasons, two main ones, europe, we saw the picture there. rising labor costs here in the u.s. day-to-day showed the biggest jump in u.s. labor cost in five years. added to the geopolitical jitters. we have a recipe for the downside today. bob, your perspective. >> that was a great summery there. >> you're right. i would lay a lot of the blame

here to the start of the problems today over in europe. take a look. we just had an ugly open in europe and ugly close. basically stocks closing on the lows there. portugal, much bigger loss than anticipated. they're going to have to raise capitol. then we have the very heated rhetoric continuing in the ukraine. accusations going back and forth and adidas coming out lowering guidance by about 20% saying they have exposure in russia, but talked about the weak overall retail environment. just an ugly day over in europe. then we. h what you were talking about, sue, the employment cost index, saw a spike in interest rates. that came up in the highest level since late 2008. cost of labor for businesses. hawks came out immediately and said, aha, the fed may have to raise rates sooner rather than later. another argument about what the fed may or may not do. finally sue, i have emphasized all day how this disappointing the home builders numbers were

particularly for beezer. orders down single digits, missed on the top and bottom line. lowest since october. ryland, only up 1.7%. we're having a housing recovery, i had numbers of 10%. this was a huge miss. >> it was. >> most are at lows for the year, and in some case, more than one year lows. so a lot of things, a whole stew of effecting the markets today. >> it is. the dow is down 214 points. thank you, i'll see you again. as we mentioned the nasdaq and russell, it is now down 1.3%. >> and that's right, sue, 97% of stocks on the nasdaq 100 trading lower, here are the main stocks weighing on the nasdaq. apple, after beating expectations last week, google, amazon, callcomm all contributing to the underperformance. it's not just the heavyweights.

growth oriented names are getting hit hard. internet sector down 2%. so are chip stocks, social media, biotech, that board paints a picture of where the loss are being seen here at the nasdaq. of course the prospect of rising rates has been on the table for a while now. that conversation becoming more real after witnessing an uptick in wage growth. aside from the tech sellout, the ipo parade continues. we have five ipos at the nasdaq. mixed first day performance, early stage biotech developing gene therapy up today. health equity seeing a big game. bioblast, biodeveloping treatment for rare and genetic diseases trading lower on the first day of trade. over to you. >> thank you very much. let's go back to ec. the headquarters to bertha coombs for a market blast. >> kell log is getting soggy. low after the serial maker cut its profit in forecast.

fifth straight decline in quartererly sales. its cereal business is trading down. nearly 5% on the day. rival general mills feeling the sympathy. all doing different stuff for breakfast now, sue. >> thank you. so it today's selloff telling us that the fed will hike interest rates sooner rather than later and how much of a concern is that jump in wages that we mentioned at the top of the show? we have nine stars worth of investment advice for you. rick lake is here at the nyse. he's portfolio manager of the four, four-star raided astin managers. it's a great day to have you both with us. thank you for joining us. rick, i'm going to start with you. how do you view a day like today. what do you do to your portfolio if anything at all when you see this kind of a decline? >> a day like today is a fresh reminder that risk management is a key part of investor's jobs.

the fund that we run as part of our daily task. i think investors have to revisit the risk-management textbook to running their portfolios for a choppier environment. >> what does that mean? does that mean utilizing the option's market? does it mean diversification, maybe all of those. >> there's a whole risk management menu. diversification, it could mean having extra cash from short term fixed income. also mean taking advantage of this new array of mutual fund that can do hedging and short selling in the equity markets. and implement strategies that are a bit different than stocks or bond. >> yeah, lamar, weigh in if you will and whether or not you use a day like today to perhaps add to positions, or whether you kind of sit it out as the volatility ramps up right now. >> sure, we've been up there doing some buying this morning. now, we're not buying

broad-based industries or products, we're buying stocks and individual stocks where we see the growth look, the growth outlook for the next several years very attractive relative to the where the stocks are trading. >> can i ask you what you added to the portfolio today? >> one of the stocks is the everbank. it's based in jacksonville, florida, but it's not a jacksonville bank. it's a national bank. and the reason we're excited about this one. i can ask you two questions. when's the last time you went to a bank? and what kind of interest are you getting on your checking account? my guess is the answer is its been years since you've been to a bank and you're getting next to nothing. in fact the average.006% of an interest. they don't marble shrines. they're paying much higher interest rates than their depositors. it's growing faster than other banks. >> they're taking market share from their competitors. >> exactly.

right now, you know, my mother pays her bills online and deposits checks using her smart phone. i think that's as good belt weather as any to know they're well ahead of the cur, in terms of how to attract new customers. >> absolutely. weigh in on the volatility, not just today, but duke this market is signaling a turn and a return to more volatility? >> absolutely. there's a great sea change understoodway. we've just come off of five or six years of perhaps the greatest economic stimulus we've seen in the u.s. feds now in the process of stopping quantitative easing, rates may rise, and the flood of liquid i did is starting to move out. so the past few years have had forces that drove asset prices down and volatility down. and now we're going to head into an area of more volatility which means they'll be more selective. more choosey. clear winners and losers which is that more investors will have to become acustomed to.

>> bond market, investors continue pour money into the bond markets and those are a fool's trade right now. what do you do in the bond market if anything at all? >> sure. we have in the balance funtd. stocks and bond. we have a position there. that said, we're pretty bearish on bond. there's no way to go except down. we think if you're concerned about inflation, bond are exactly where you don't want to be and you're going to feel a lot of pain if off big bond exposure. we think stocks are the better place to put the money. >> gentlemen, great day to have you on. thank you. >> thank you very much. >> up to you. >> sue, thank you very much. the frempbl telecom company iliad making a play for t-mobile. back out to t-mobile shares, volatile reaction here, but look at the jump. morgan brennan has been following the story and has the latest, morgan. >> iliad is offering $15 billion in cash for a 56.6% stake of

t-mobile u.s. that values t-mobile at $33 per share, but iliad's offer gives an overall value of $36.20 that's based on an estimated $10 billion worth of synergies. it's already redefining the u.s. wireless space. we're seeing sprint down on the news. it was widely reported that sprint was in talks to merge with t-mobile. know no deal has been announced. would iliad be a better partner for t-mobile? analyst craig moffet thinks this is good for consumers because sprint t-mobile deal would have decreased competition here in the u.s. >> at&t and verizon would have been benefitted if sprint and t-mobile mernged because -- merged because you'd see four players going to three, and the presumption was from investors, was that that would mean higher prices for consumers and therefore more profitability for

wireless carrier. >> that's why you're seeing at&t, verizon down on the side of sprint. sprint is the odd man out, tyler, the company has been pouring bills into upgragd its infrastructure and shedding post-paid subscribers for the past ten headquarters. a lot of sources telling me that sprint bidding for t-mobile was how it was looking to gain scale and really become more competitive with verizon and at&t. we're going to have a keep close eye on that company. >> my first question was who's iliad. never heard of them. >> iliad's a french telecom upstart, and from what ind, they have been -- i understand, they have been disrupting the french wireless market. much as t-mobile. they're the french t-mobile. >> morgan, thanks, appreciate it. target naming a new ceo. its been a while. big challenges facing that individual in light of the retailer's big data breach and other stumbles. plus is wage inflation

coming? latest read on jobs giving investors some close. and when it comes to the economy, is yellen, are yellen and the fed or is yellen and the fed behind the curve. the next move, power will be back in two. we never thought we'd be farming wind out here. it's not just building jobs here, it's helping our community. siemens location here has just received a major order of wind turbines. it puts a huge smile on my face. cause i'm like, 'this is what we do.' the fact that iowa is leading the way in wind energy, i'm so proud, like, it's just amazing.

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♪ i voted for culture... ...with a 'k.' how are you? i voted for plausible deniability. i didn't kill her, david. and i voted for decisive military action. ♪ america, you cast your votes. now, go to xfinity on demand and select the people's hotlist to see this summer's top 100 shows and movies. i voted! welcome back to "power lunch," dow near session lows as concerns mount over the strength of overseas economies and

ongoing tensions with russia. the dow right now trading down about one and a quarter percent among the biggest laggers, nike, exxon, rer rye zon. verizon down on the news about the iliad bid for t-mobile. interestingly guys, we have the telecoms today. the worst performer, even though they're the best performer for the month. back to you. >> thanks so much. let's get you headlines. time warner cable missing earnings estimates. the cable operator did see a jump in internet subscribers but lost 34,000 residential customers during the second quarter. the stock is down almost two and a quarter percent. posting a lost restructuring layoffs linked to the blame. shares are getting hit hard earlier. we have rubbermaid in the news and it is up about 3%. alcatel improving as cost cuts take hold. we showed you rubbermaid, that

is the bright spot in the trading session. beating profit estimates, revenue also beat sales showing particular strength in tools and commercial products. all right, target. a big stock to watch today. finally naming a new ceo. he's pepsi cocoo. brian cornell. he was said to succeed as ceo at pepsi. all right, target saying he will be responsible for improving the company's performance and developing its e commerce business in light of the devastating data breach that occurred earlier this year. in today's yahoo finance question of the day, what will be the biggest challenge for target's new ceo? 17% say cyber security. 19% say improving their own stores.

but 42% of you say competing with amazon and other online retailers. 22% say competing with wall street. i thought cyber security, ty would be higher on the list. >> i guess people, people i don't know, i guess people are worried about it, maybe not as many as we thought. >> all right. inflation, people worrying about that. warning signs may be picking up. latest read on jobs showing some wage pressure and when you see wage pressure, you know economics, you know that is one of the key drivers of inflation. raising questions about the fed's next move and will policy makers need to act sooner and maybe a little more dramatically. our senior reporter steve is all over this. steve. >> a couple data points this morning, first the jobless claims number and the employment cost index. and both of them are showing strong growths. the question is whether or not the fed needs to accelerate. look at the eci.

it was, it was -- >> employment costs. >> and 0.7%. high nest many -- highest we've had in my years. the best since, moving average? >> best jobless claims? >> since 2006. >> six. very good. close enough. okay so both, here's the question, does the fed have to accelerate? to me when i look at the numbers, i say you know what, if we keep improving at the pace we're improving. i think it just stand to reason, certainly the risk of a fed acting faster has to be considered. >> very quickly. i want to go back to something you asked the president last week. you pointed out in his reciting of all the numbers that were doing well. the one that wasn't was incomes. is this evidence that incomes are picking up. >> it may well be. it's something that wages were strong inside that report. benefits were up as well. wages also up. here's the question for the janet yellen.

just when median incomes begin to rise, just when the average family starts to do well, is that when you need to take the punch bowl away. it's a big social question. fed is going to face serious politics on this. >> thank you very much. another big concern today, argentina. don't cry for them. well maybe you should. argentina nation, the nation defaulting on some debt. kate kelly here with the developing story. >> thanks so much. tyler. there's been talk of the banking system working out a private sector solution to the default by purchasing argentina's debt for the hedge fund that hold it. now it looks like more global banks have gotten involved. recently as yesterday, citigroup were asked to consider buying the debt from the holdout creditors, mml, elliott management among others. that effort fell through. today i'm told, u.s. banks are still in discussions about the matter, but it's unclear whether they'd. acting as agent to help broker a deal for argentina's banks or principle in buying a debt themselves.

meanwhile, markets have been thrown into disarray. the bempbl mark stock index is down sharply. the government's bond are trading at flat prices. assuming no interest payments whatsoever are have the going concern. firms that are traded in the u.s. are down significantly today. elliott isn't the only bilge u.s. hedge fund involved. other fund have bought arch tine papers over the year including perry capital, and hayman capitol. highland global. newburger burman and goldman and sachs. more revealed friday morning as they gather in downtown manhattan for a court hearing on the issues. at the same time, tyler, an industry committee will meet to decide whether or not today's technical default as some of are calling it because the money was posted, just not distributed. if it does, those who hold cds, the insurance policies that hold

out get their money. >> all right, we'll be watching all of that. >> a lot of issues. >> kate kelly, thank you very much. sue. a lot to watch on the market. we are all over the selloff today. down 220 points on the dow. s&p is off 76. the s&p is off 30, nasdaq off 76. now the dow, s&p on pace for the worst day in nearly four months. average is also breaking through some key technical levels. we'll talk about those when we come back. plus a wall street dream come through for one teenager. there he is. he's also going to get investing advice from the world's best stock picker. all of that coming up next on power lunch. don't just visit san francisco. (water dripping and pipes clanging)

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welcome back to "power lunch." hitting a pothole today. falling after full year of forecast fell short of street expectations. the stock right now off about 3.5%. autosuppliers in general moving lower after that outlook. also came in light of expectations. taking a look at that chart, there you go. automotive down about 1%. tyler. >> thanks very much. the dow at session lows there about 239 points lower as a market check for you. last year 17-year-old trey grinner was diagnosed with hodgkin's lymphoma. he was determined it would not interfere with his dreams of becoming an investment banker on

wall street. trey has an internship at goldman sachs this week thanks to the make a wish foundation. trey, how did this, welcome, first of all. how did this come about? did make a wish find you, did you find them? and how did you put together be goldman. >> when ifgs diagnosed, i was assigned a social worker. she said because i'm under 18, i would be able to be granted a wish. so my mom wrote the make a wish foundation, saying hey maybe i might be a good candidate for getting a wish granted. and they came to my house, interviewed me, and we were immediately surprised with what i wished for. >> yeah. that is a surprise. most guys your age might well want to spend a day with jay-z or lebron or whatever. you chose it because you had gotten obsessed with the idea of picking stocks. >> yes, sir. it started off as just a little thing at school. you know. >> investing competitions? >> yes, yes.

investing competition at school. and i began to get obsessed with the concept of why, why these move. why prices move in the way that they do and how you can analyze these different ways. different ways to analyze it, technical, fundamental. >> you started with $50,000 and turned it into $70,000. i want to introduce to you someone that know why is prices moved and turned money into bigger money. omaha? you ever heard of omaha. >> i have. >> do you know who lives there? >> i do not. >> warren buffett lived in omaha. mr. buffett, welcome. >> hi, how are you? >> good, how are you? >> this is trey, trey meet warren buffett. >> yeah, i want to give him $50,000 and turn it into $70,000 for me. >> wouldn't you love that? >> it's difficult, particularly on days like this. >> it is. >> what advice would you have for a guy like trey who says he wants to go into investment banking. what would you tell him to do? >> well, you know, i think he's

doing exactly the right thing. he's doing, he's looking to do what he loves, and you know, i think the idea of being back there and, you know, getting to see what it's all about at goldman and getting to talk to you. he's exactly on the right track. and getting started young, nothing like it. >> trey, you have mr. buffett on the phone. what do you want to know from him? >> well, what are you in? what's in your portfolio today, mr. buffett? >> i see you've been talking to the people at cnbc. >> yes, sir, i have. >> well, we publish what we owned regularly. my plor's 99%. what i would like to do, i understand that you're being shown around goldman. i'd like to become your agent because they're going to try and sign you up. i think the two of us working together could make a better

deal with lloyd than if he has you all to himself. we can get jamie diamond into the act and everybody competing for your services if we played this right. >> i think there is trey with mr. blankfine earlier in this week. he's also, mr. buffett, met derek jeter at yankees stadium earlier. been a great week for him. i have to ask you, i'm sure a guy like trey wonders what you're thinking on a day like this when the market is down 240 points. . what would you tell him? >> i like anything, i like, you know, if they mark down hamburge hamburgers, anything i buy, i like when it's marked down. so the lower the prices go, as long as you know the company's you're investing in. the better it is for a buyer. down days always make me feel good. >> yes. >> trey. tell mr. buffett what you plan to study when you enroll in community college later this year, and i'd like to get his reaction as to whether that

sound good to him or not. >> well i plan to cross major in e con and finance. the two degrees are only a couple classes off and to get both is even better. >> and trey, the one thing i'd recommend, you take all the accounting courses that you can find. you know, accounting is the language of business. and there's nothing like, you know, getting it early and sort of getting it in your system. whenever you get a chance to take an accounting course, jump on it. and it'll, it'll make it so much easier, you know, for years and years to come at reading financial statements. to get comfortable with it. it is a language all of its own. and getting comfortable in the foreign language in fact takes a little experience, little study early on. but it pays off big later on. >> yes, sir, thank you. >> how, mr. buffett, would you council ordinary invests or a guy like -- investors or a guy like trey trying to make money in his personal portfolio to factor in the cross currents we hear in the market on a day like

this? that wage inflation is coming back, argentina is defaulting on its debt, increasing tension in europe and the european economy may not be good. how should people think about that on a day like this where they see a very immediate effect in the prices of their stocks? >> yeah well, if they're in a good biez and they've got some spare money they liked buying it yesterday, they should like buying it better today. it really, the day-to-day stuff doesn't make any difference. you know, the trick in investing is to find good businesses and hold them for a long time and make a lot of money doing so. and it's a mistake to pay attention to the day-to-day fluctuations. . you found a good business into your hometown, you wouldn't buy and sell every day just based on headlines. you'd concentrate on buying the best business you could and having the best management there that you could have. >> if you liked it yesterday, might to want buy more today. thank you so much.

any final words or questions for warren? >> well, i think your advice is really good on buying and replacement, if you liked it it then, you're going to love it now. dow's down and it's a good time to reup on positions. >> trey, we'd love to have you go out to the annual meeting. i'd like to meet you personally. >> i bet question make that happen. thank you so much. >> thank you. >> thanks for calling in. trey, thank you for being with us today. let me ask you, how's your health? >> i finished chemotherapy a couple weeks ago, and i'm on trucking. >> and fantastic. we're delighted to hear that. and you're going to be at the community college this fall. >> yes, sir. >> anybody wants to talk to trey, we can put you, we can hook you up with trey, all right. >> yes, sir. >> good luck, and eye on moving over to berkeley. >> yes, sir. >> trey, thank you very much. >> have a great week. >> you have. >> i have. >> sue, down to you. >> and definitely take warren buffett with you if goldman sachs decides to snap you up. goldman would be a great place to work. i have a funny feeling you're

going get that offer. good luck, trey. gold is down on the trading session. we have 1.5% los, or close in the silver market and # % los in platinum. really the metals pretty much down across the board. all right if you're looking for safety in the sell-off, rick is tracking the bond market. ricky over to you. >> i like the way you phrased that, sue, let's start at the top. the one thing you jump out at you is we're at 261. this morning. now at 254. open to a two-day, 554-55 area. where why is sue right? why are rates down instead of up? because of the stock market. listen, remember the first six weeks of the year? we started out at 303, the driving force was if you didn't like stocks, tina, there is no alternative. oh yes, there is. it's called treasuries.

it's the hedge. look at a two-day chart of the steepening program. everybody's talking about flat when you open the chart up, we are only ten basis points off. though flat egs its been through june of last year. call it 13 months. if you want to look at the euro, this is key. at the first level since november. is it a dollar rally or a euro break? i think it's the latter, back to you. >> i think you're absolutely right on that one, ricky, thank you very much. pretty much sea of red. s&p 500 and dow on pace for the worst day in nearly four months. transports down 105 points. volatility is back, it's in the three and a half month high. average is breaking key technical levels in the s&p. so where do we go from here? we're going to talk about that and the levels you need to watch as we head out, the most active stocks "power lunch from post nine" is back in two minutes. tdd#: 1-800-345-2550 trading inspires your life.

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♪ i voted for culture... ...with a 'k.' how are you? i voted for plausible deniability. i didn't kill her, david. and i voted for decisive military action. ♪ america, you cast your votes. now, go to xfinity on demand and select the people's hotlist to see this summer's top 100 shows and movies. i voted! welcome back to "power lunch," s&p 500 at session lows as the overseas economies and tensions with russia. s&p right now trading down about 1.4%. among the biggest laggered

today, l 3 communications. all ten sectors of the s&p are off more than 1%. but check out the vix. that's what's up today. up nearly 20% here on the day as investors rush for some sort of protection. index at a three and a half month high, sue. >> bertha, thanks. let's go to the nasdaq and the small cap stocks, biggest losers on a percentage basis. nasdaq right now is down 1.5%. russ sl down -- rustle is -- russell is down too. >> the chip stocks which have been on fire over the past one year. it's one of the subsectors that is getting hit hard. some say it's due to the comments that they made last night and contributing to the tech shares selling off the worst on the nasdaq, 100 and today's straight. out of tech, big consumer name,

that's whole foods, earnings beat expectations, but once again lowered its sales forecast. that stock moving to the downside. earnings of course will be dominating the conversation this afternoon. high fliers in focus. gopro, sue, expectations high there as the stock has nearly doubled since going public. exmedia. something investors will be watching for. if earnings disappoints, traders tell me that will only add to the nervousness in the markets. something that we'll be watching closely today, back to you. >> thank you so much. focussing in on the s&p and dow, on pace for the worst day in four months. bob is here as we look at the dow down better than 1%. >> and a lot of reasons for the drop. we talked about europe, problems in portugal, problems in the ukraine. i want to highlight what's been going on with the latin american names because argentina default, a lot of etfs there.

brazil's weak, mexico's weak. ilf, that's the latin american etf, then there's even other etfs in the markets like the india's weak as well. besides this, i want to highlight disappointing earnings hitting sectors. i have emphasized all day how disappointing, and i mean disappointing they were. look they're down lows for the year, some cases 18 month lows. trucking stocks, internet content stocks are weak. yelp was short of expectations. linkedin, monster, twitter, even though twitter had a huge run-ups. trucking stocks, take a look because road runner came out disappointing. and that's hitting that sector. so earnings really matter. finally sue, the whole key question today, why did bond yields reverse after the eci numbers came out? i agree with rick, when the stock market got hit, so this seems to be a bit of a safe haven play for the stock, for the bond to go into the bond

market. >> all right, let's kind of flush out and bring in kenny and ben willis who joins us with princeton securities group. so you know, ben oob i'm going to start with you. mr. buffett says when there's a sale on stocks, you go 911 and buy them. what do you think? >> couldn't agree more. i think the market from looking from the top down so to speak, two great stages to listen to. you had mr. greenspan yesterday telling us we may be looking at a false dawn. i would prefer to listen to the professor of the friend of fermentation. we're pricing prosperity. >> okay. >> employment cost index means there's pricing pressure. there's inflationary pressure. 4% gdp means the economy is recovering. now that may cause panic into the bond market where money's been parked, but you're going to get those volatile moves. i believe what we're seeing coming out of europe and what started with green sbst span yesterday was a currency play. the dollar is strengthening because of the movement that is

expected in our own rates is going to drive the dollar higher. not necessarily europe. it's correcting the race to the bottom that we used to have in currencies is what we're witnessing today in today's market. you buy them when they're on sale. warren buffett had a nice trade in goldman sachs in you remember. >> yes, absolutely. i could never forget that, kenny, what do you think? >> you're right. i think part of what we're feeling is the building nervousness that had been, you know, over the last couple months. the market was confused. it was afraid. you could feel the people getting around the door, but no one wanted to be the first one out. then yesterday greenspan says the comment. then the portuguese bank this morning said boom, there's no panic today by any stretch. i think people need to understand that. just because it went down 200 doesn't feel panicky. when things are on sale, here's your opportunity. >> 17,000, it's not there anymore. i agree with you. i think we should have these problems. one earnings have been better.

we've had disappointments today. and i think that's a factor. in addition, the fed is closer to meeting its goals. it's closer to full employment. it's closer overall to higher inflation. control kind of inflation that they like, not runaway, there's concerns about that. we should have these problems right now. they're moving in the direction they want things to move. >> yeah. >> but you know, even though everybody says that the move in rates that the fed is expected to do second quarter perhaps of next year is factored into the market, i'm not sure it is. >> no. i believe the fact of what we're seeing today is the factoring that there'll be forced to do sooner than that, and don't forget. this is the last day of the month of otherwise underperforming month. you could consider this a reset which is why you see not only equities under pressure if you think it's a fear of trade, then why is gold coming off. >> all the precious metals. >> that to me is just money is going to reset, it may be going into the bottom market right now, and we're going to got

another look at it. you see the russell 2000 that underperformed, it's down year over year. up about 14% on the year is seeing some pressure. and we have for the last few days on profit taking and now some true impulse to sell because of the story. >> you know the thing that worries me though a little bit is the dwerges in the transportation average. and if you subscribe to dow theory. that's a negative indicator and longer term indicator. i don't know whether that holds this time around, but we're down 91 points down on the transporter. >> i'm looking for this correction that has yet to come, and now we've looked to something that we call sector corrections. and we saw it in the bioteches. we saw it in the social media stocks. we started to see it in the chip stocks. chips have been a place where we were seeing institutional money going to work. that money seems to be coming off the table, at least short term. whether or not one day is not

the correction. don't forget, now we have the first day of the month tomorrow. >> we're down because of road runner's disappointing numbers. >> i agree. the dwerges is not so big that statistically significant yet. i don't think so, and if it would be, i think you'll hear more people scream about it. >> the mood just tend to be negative. you have everything just moving in that direction. i don't think it's anything for anyone to be panicked about at all. >> thank you very much. appreciate it. ty, up to you. all right sue. look at the heat map there, only about one out of 20 of the s&p 500 stocks today are actually making money. all of the others losing money today. more on what's moving the markets after this.

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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. a couple of stocks bucking today's downward trend. marathon prele to yum, best performing in the s&p 500. third largest stand alone.

u.s. refining company said the second quarter profit rose better nanna expected 44%. health by hire crude refining margins on the gulf of mexico. and on the coast there rather, the stock up about 6.4%. and check out el pollo loco, the players are back looking in. they're up 10.5% today on a day when small caps are getting crushed. back to you guys. >> all right, thank you very much, bertha. with us from cincinnati is matt mccormack, welcome, good to have you with us. i don't to want pick a fight between you and warren buffett, but he said basically play past today's news, do you agree? >> i always found it okay to agree with warren, but i think warren would agree with me that investing in names like twitter, netflix, and amazon are not his areas of investment expertise. and he's probably not putting money to work there, tyler. when you look at those names,

that's where i think there's the most concern that they've had a great run, they've been previous high fliers, they are getting beaten up more than the market today where warren, i probably agree on is look at the high qualities. j and j, strong dividend yield. i think these are the names that are outperforming, higher quality, and if the market continues to be choppy. i think they're going to hold up relative better than most of its peers as well as the market. that's the area where i would focus on. high quality, dividend paying names. >> you know a lot of people, matt, have been predicting the ultimate demise of bond. and it really hasn't happened this year. in fact quite the contrary. do you think this is a turning point for bond? >> i don't know. i remember at the end of last year everyone was predicting interest rates are going to rise. gdp's going to be fantastic, europe's going to be the place to be. they were wrong. now you're seeing a movement in

bond, however we're still at very historic lows. i think i would rather be in an area within the stock side of companies that have more consistent earnings and the earnings growth. i think when you look at the potential for getting income, j and j increased their dividend for 51 years. i think j and j is going to outperform the bond markets. i'd rather be in names like that than trying to bet on the u.s. treasury. i think when you look at bond right now. why are people buying them? in comes safety, downside protection. i think you get the same way. i want to get a little bit more in my returns, and i think high quality equities are the place to be. >> obviously you're looking at companies like johnson and johnson, those are on your buy list, are there any other that meet that blue chip, best of breed dividend payers that you'd be looking to snap up on price weakness? >> it's interesting, if you look and we get more volatility. if you look there's an opportunity to go through the long awaited correction. people basically found many

excuses to sell and are acting upon it. one of the names we're looking at is a name like black rocket. it's getting beaten up more than the market, but it looks if we turn out of this. we get a v-shaped correction correction. it's beginning tow print. it's going to be nasty, shortish, and brutish, it's going to be quick and there's going to be other opportunities. i would look for opportunities, probably like buffett to add names that have been baent up more. fit the high quality screen, but you know, johnson and johnson looks good. proctor's coming out with earn pgs. apple still my favorite stock. i look at high quality stocks as the place to be right now. >> lots of ideas. thank you very much. nasty, shortish, brutish, three of my best college friend, down to you. the sell off in tact on wall street. right now the average is up 218 points. we're going to focus though on the treasury market. is this perhaps the turning point for treasure drink rhode island? we have bond traders weighing in

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all right. the bond market on the move today as the bonds sell off yielding 2.55%. what's the bigger story for the treasury market?

jack is at the cme for us. good to see you, jack. a lot of people have been recommending investors get out of the bond market. there's going to be a dramatic turn. is this perhaps the sport of that turn for bond or not? >> sue, you know, its been a great place to park money over the course of the last couple years. a lot of non-believers in equities have been putting their money there. over the course of the last couple of weeks, things have changed. that 4% gdp number did more to change the bond of the bond traders than anything else. and let's take a giant leap of faith here. if indeed growth is coming back online. then we are naturally going to see bond yields go higher. and that's what we want to see. >> all right, so what does that mean for equities? what do you do in that market today? >> what we do is buy dips. what we are going to see are the large allocations. these are big, big trades where you see money coming out of fixed income. going into equities. now not only the bond market tum

public. with e will see a small leak. go back up towards 3%. i have a feeling one of the rallies over the course of the year that can melt us up. >> good to see you always. breaking news, what do you have? cnbc obtained this internal sec inspector's general reports. it has not been released publicly before. however, we gotten a copy of it today. a detail's a mass of month long's internal leak investigation inside the sec looking for evidence of who allegedly leaked details of the sec's deliberations about the london whale issue with jpmorgan last fall. what we know about the report. as of right now, the ig investigators, those from the inspector general's office interviewed mary joe white, commissioners and staff trying to figure out where this alleged leak may have come from. the investigators reviewed

telephone, blackberry, and e-mail record for commissioners and staff. the investigators also reviewed sec headquarters access logs to see when reuters reporters had been inside the building in an effort to figure out who might have received that leak and published some of that non-public information in articles in reuters last fall. at issue was the secret september 129 meeting at the sec and executive meeting on the settlement. and the ig said ultimately the investigation culminating in a report dated narge 5th. they were unable to figure out who, if anyone improperly leaked details of the sec's deliberations. >> all right, developing story, thank you very much. "street signs" is coming up next, they're following the markets. >> we are all over the markets, but doing cool stuff as well. like what the retail industry is going to look like in 25 years from now. for example, will there be

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big to wrap up the month of july. pulling the monthly returns for most of the barometers into negative territory. warren buffett told us, sue, play past the day's events. "street signs begins right now and they're going to pick up on market coverage, see you tomorrow. well the street is seeing more red today than early april. welcome everybody to "street signs" where the signs aren't clear today. you have the dow here, sitting at two month lows and all three industries here behind me, and now negative fort month. it is also broad weakness on heavy vol yups. something we haven't seen in a while. and here's the vix. it brings it to a gain of 38% for july alone. that is off a his or itically low base, and there are a whole pile o