>> i would agree with that. also, thank you very much to all of our viewers. thanks for watching "street signs." "closing bell" is next. stocks rocked here to close down the month of july. welcome to the "closing bell" on this july 31. i'm kelly evans at the new york stock exchange. >> i'm bill griffeth. depends on who you ask if you want to know exactly why stocks are down. there is a number of reasons. we will get into all the possible scenarios. but the bottom line is, stocks are now negative for the month. a major averages are. first time since january. the global uncertainty feeding in to those red arrows looks to be continuing into the month of august. as we stand here, we're at the lows of the day right now for the dow. >> the trading across europe, we saw a lot of those indexes off 2%.

for a while it looked like we might outperform, bill. now the dow is off 1.6%. 267 points. we needed to add 50 if we wanted to be positive on the month. >> the dow is down 1.6%. the russell is down 2.3%. the small cap stocks are taking a big hit today. another recent leader in this market to the up side, the transportation stocks, down sharply as well today, down 115 points. >> a lot of breadth across the sell-offs, it is pretty indiscriminate. if you are a value investor, that should mean opportunity. but the vix popping by about three points today, at 16.5. we haven't seen a move like that in that index in quite some time. >> here's how we stand right now. >> the dow off 263 points. 16,616 is where we are trading now. nasdaq off 1.9%, shedding just about 83 points on the session. 4,380 or so is the level. the s&p 500 over 33, down all the way -- below 1,940 down to

1,937 at the moment. let's get to it. cnbc heather hughes from the sun america funds, doug walford forecommercial wealth advisors. jo duran from financial capital advisors here with the at the big board, and our own rick santelli. rick, what is the market telling you? the yields were going up, then they started to come back for the 10 and 30-year. we're back to where we were yesterday basically but stocks continue to slide lower. what's going on here? >> i don't know. to me, i like to keep things simple. what's changed in the last day? we had a fed meeting. what happened at the fed meeting? nothing super important except for the fact that we have a whiff of inflation, a whiff of compensation improvement based on this morning's data to the tune of the best in six years. we have a fed that would like to find a reason not to take the punch bowl away but isn't finding many of those reasons exist. i think that the denial of the effects of their policy are starting to change and i think

that's why equities are moving the way they did. we moved up to a 2.61 level in that 10-year based on it, then we moved back down. to me, when stocks are proactively moving lower, rates are going to move lower but they're going to start at different levels of hooking up. i think that's what's changed. i think interest rates are going to be a little more buoyant to the up side. >> i'm glad you brought up this point about the labor costs. it gets right to the heart of the most significant thing that's happened did, for sure. here's what i don't understand in the market reaction. like to hear, tom, what you make of it. if we can show the sectors today, leaders, laggards, you can see utilities outperforming the market, you might imagine they'd get hit if this was the kind of day where everybody was positioning for a rate hike. telecoms are among the laggards. can you look across the sector action and see if that's in fact what's happening, because people are spooked by higher labor costs and if this is a fed move or if this is more of a flight to safety. >> i think now that we're down so far that we are starting to

see a flight to safety now that the dow is down. 200, 300 points. but the fact that, as rick said, that yields are not going lower -- okay, that we did see big sell-off in bonds yesterday. i think that speaks to the fact that the dynamic has changed a little bit and that utilities will bounce a little bit when the stock market is down 300 points. that's only natural. but i think the game has changed. i think that those sectors that are exposed to higher rates going forward with do better than we have seen so far this year. >> what i don't get is, one day we're talking about slack in the labor market. that was directly from the fed's communique the other day. now we are talking about higher labor costs. you can't have both. >> would that phrase have made it in if they'd have seen this morning's cost report? >> basically, when you look at rising rates, we haven't seen them yet. all of us have been waiting for rates to rise. we started tapering. it seems we're on track to end

tapering in october, yet rates have really done nothing but go down so i think it would be a healthy sign if we get an uptick or pick-up in rates. >> yep. >> i think one of the things we all need to look at is the flexibility the fed has and any hint of inflation removing a lot of flexibility. i think that's what we're seeing now, a real panic and concern that the market's not going to give the fed the flexibility to choose when they do things if inflation kicks in. >> just the other day the fed was talking about slack in the labor market. you can't have wage inflation and a slack labor market at the same time. >> you're assuming the fed has everything nailed down, bill. there's the fatal flaw. i'm serious! you have -- >> i'm just saying what the government tells me. >> you ha58 million people that aren't working. and the fed has always thought, their plan is that you're going to draw these people back in,

unemployment rates are actually going to go up but that's all a good thing. now they've realized slack in the labor market doesn't include those 58 million anymore and who we have left isn't necessarily a skill set to match. they are seeing the structural errors of their ways. >> i'm looking at the jobs data tomorrow. yes, we want to see full-time employment, middle class builders, not part-time workers because i'm afraid of obamacare so we're cutting back on full-time and employing part-time workers. you're seeing that participation rate. >> what's your read on the market today, joe. >> first, days like this are normal. the market has been wound too tight. if it is unraveling a little bit right now, that's good. i'd love to see a correction. as a wealth manager we love days like this because this is when wealth managers shine. everybody is a genius when they're going up. >> what are you buying? >> i'm not going to buy today specifically because of this little dip. i think actually what we are

looking for is a 5% to 10% correction and i think that will be a better buying opportunity. >> we've gone 33 months now without a 10% correction. longest streak since 1990. >> we're at a two-month low right now. two months ago when we were back at this level we were all saying, gee somebody is the market too expensive. now we are wondering if the correction is under way. >> absolutely. we will be asking that question years from now as well. >> anybody -- doug, you've already said you're not going to buy here. anybody else buying this dip yet? raise your hand or something say. anybody buying? >> i'm buying the dip. >> go ahead, tom. what are you buying? >> regional banks. regional banks have gotten hit throughout earnings as you saw a rotation out of regionals into investment banks based on a valuation play. but if we have an improving economy and rising rates, regional banks can do well. you can get long them and if you're scared, hedge the market.

>> if you were in an environment where rates are going up, you need to shift from dividend payers to dividend grow es. so companies that are actually growing their dividends. >> rick, i just want to try and clear this up. if we can. is this a rate-driven sell-off or is this something else? we haven't really talked at all about the ukraine. >> we're only 12 basis points off the low year close of 228.44. in the end the problem isn't looking at rates the way you are looking at it. it is lookingality the fed and everything they've done and you tell me where rates would have been, where they should be -- >> is this about international tensions today, international tensions with russia and the ukraine and situations outside of our borders? >> i can't prove it but i don't think it is geopolitical at all. i think this is all federal reserve now with data that

challenges some of their long-written hypotheses regarding what they can do and how good they are at doing it. >> where i agree with rick is that there's been an obsession with the fed and central banking over the past two years. it has obscured the fundamentals. corporate revenues are only up about 4% this quarter but profits are up 10%. at convergent we say that says that we have companies that are executing out there that are good buys. >> doug, i hear that all the time. bulls that come on the show say it is about earnings. earnings are what matter. earnings matter -- until they don't. and today seems to be one of those days when earnings don't matter. right, heather? >> yes. yeah. now, i guess when you have earnings and they're looking okay, again, we might have some issues on top line revenue growth but overall, look, if the fed's -- i don't disagree that the fed's bond buying program has contributed to the housing recovery and low rates have helped corporations take on new

debt and borrow all the merger and acquisition activity and share buy-backs. but if they're look at their two gauges, unemployment and inflation, which is all that matters, and we're achieving and reaching their target, i can't imagine that they would -- may have to raise rates prior to the third quarter of 2015 in this situation. >> so the market's misreading it, had heather? >> well, no. right now, if you look back in history when we ended qe1, april 2010, markets decline 16%. qe2 ended in what? july of 2011. markets tanked 19%. so everyone's now thinking, okay, not only are we ending tapering on track to end tapering in october, but right now with the situation we're meeting and achieving the unemployment and inflation, that dual-mandate targets, then we may have to raise rates sooner rather than later and -- >> there is a difference though. that's that there is actual fundamental growth which was not true of the two prior times. so i don't think you'll see a

15% to 20% correction but 5%, to 10%. >> fair enough. >> before we go, rick, tomorrow's the big jobs report. what do you guys on the floor hearing? what are you expecting? >> well, everybody on the floor is hearing the 200 to 220. i'm going the low end. i think the number is going to be under 200. if it is a good number tomorrow, and interest rates take out the mid 260s in 10s, that's to me the magical line. any close above 266 in my opinion, the game changes, period. >> very good. thank you all. appreciate your thoughts on what's been turning out to be an important day for the markets. the last day of the month. and a day like today, the last hour becomes very critical to see -- >> people are making their books for the month. >> are they willing to step up and try and improve their performance or are they going to sell off at this point. that will be very interesting to see what happens here. >> we're near session lows here. dow is off 276 points. we were just off 280.

looking to see if we can hold the 11,600. the nasdaq is off almost 2% now. >> wall street investors give us their take on today's sell-off coming up. if today wasn't exciting enough, more big earnings coming out after the close. tesla, linkedin, expedia, among the big names on deck. and goproreports results for the first time since coming public. we'll preview those numbers coming up here on the "closing bell." also ahead, targfind out if target's next ceo has what it takes to win customers back who are still miffed about last year's data breach. tdd#: 1-800-345-2550 there are trading opportunities 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.

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as we go deeper into the last hour of trading, selling is intensifying, down more than 290 points on the dow. it is called window dressing often. we're at the end of the month, money managers will buy stocks that have performed well during the month to dress up their portfolio. that's window dressing.

that's not happening today. art cashin just walked by and said window dressing today may be called window breaking. that seems to be what's happening right now as we are having our worst day now since february 3rd, at least for the dow. >> we'll watch the 10-year. it is at the 2.56 level now. if it moves to the up side or if, as mentioned, the sell-off spoox it t spooks it the other way. bertha coombs is keeping an eye on the big movers. >> exxon-mobil moving lower despite better second quarter earnings as higher prices offset a decline in production. exxon off more than 3.5%. tough session for kellogg as well after posting its fifth straight decline in quarterly cereal sales as most people look to have something else for breakfast. it also cut its full-year forecast, kellogg off 5.8%. 3-d printer makers are getting lambered today as 3-d systems posted weaker than expected second quarter earnings pressured by new printer product

launches and heavy spending on research and development. meantime, t-mobile's road to being acquired turning into a bit of odyssey now that france's iliad made a $15 billion $33 a share all-cash bid for 56% of the company. t-mobile today up 6% certainly bucking the trend in telecom. we end with target. company bringing in an outsider as its ceo for the first time, naming pepsico executive brian cornell to the top spot. target not getting a lift on that news, down 2.5%. kelly? >> yeah, slightly outperforming the market on a difficult day, bertha. let's talk more about some of the problems on the new target ceo's agenda. >> joining us, president of s.w. retail advisor, cnbc retail animalist. stacy, he ran mike's stores. he ran sam's club. he now runs pepsi america. is he the guy for target, you think? >> you know what? he's got a really great

background. however, there are a couple things missing on the resume that are really important to target. number one, an expertise in apparel. and the second one is an expertise in the home business. that's really what has differentiated target and really made people pay up and pay a premium to go there and drive the basket and drive other items. that's where we really need the reinvigoration in the business. so while he has an impressive background, i would argue i would like to see a little more merchandising and apparel fresh blood. >> that's a good point, stacy, especially because it seems like people look back on the data breach now as more of a symptom how deep the problems were at target as opposed to the problem itself. how much do you think he needs to focus on various missteps, including canada, the company's had over the last couple of years as opposed to just cleaning up that mess? >> that's a good question. canada is obviously the biggest issue on investors' minds. target has burned about $1.5 billion of cash over the past year in to canada and they

really flubbed it. they flubbed the entrance there. the question now is do you cut bait and leave canada? i mean there is a slew of retailers who have done it wrong, who are exiting. big lots. sears is looking to sell. the question is, do you try to fix it? a lot of retailers have waited too long and burned more cash trying to fix it. the question is really cornell has to figure out what he's going to do with that canadian business. >> what do you do with that data breach? that's been their biggest problem, by far, here in the united states. it has kept people away from the stores here. how do you bring them back? >> sure. it is nice that we actually have some fresh management from the outside, someone who's from a different culture. obviously the data breach was a huge hurt to target, especially during the holiday season. so they need to win back the trust of the consumer, and they're investing $100 million this year in chip and pin technology which is what is the standard in europe. it is much more secure. so that will certainly help. but they need to get the

consumers back in the store, win back their trust and also show them that they have that differentiated merchandise that they've really sort of lost that knack for in the past two years. >> how much of this back to school going to give them an opportunity to do so? it is a little premature, perhaps. we are coming right up on that season but we are actually seeing a bit of an increase in consumer confidence. where does target fall in terms of capitalizing on that opportunity? >> yeah. so earnings are coming up in the next couple weeks for all the major retailers. so far we've heard not greatest signs from whirlpool and the container store and many others. but certainly target is positioned slightly better. they're a slightly higher income like the discounters like walmart. but again, i really think the issue here is the merchandise. people love target. they love the brand. they love when they have exciin differentiated product. if they can get that back, they can get the consumer back in the

store. >> stacy, from london this time, where it is dinner. as we head to the close, we're almost down 300 points on the dow industrials. this is just about the low for the session right here. as we head to -- towards what will be the first down month we've had for the markets since january. >> yes. and i think the worst day that we've had in terms of sell-off here since february. we'll go live to the nasdaq next for a snapshot of the action in tech. how much of today's selling also has to do with argentina defaulting? we'll talk about this major move straight ahead. stay with us. the world has gotten you far, but what if you could see more of what you wanted to know? with fidelity's new active trader pro investing platform, the information that's important to you is all in one place, so finding more insight is easier. it's your idea powered by active trader pro. another way fidelity

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lest ye have forgot, this is what a sell-off looks like. the dow industrials off more than 290 points. nasdaq down 91, the s&p down 33. we'll see as we close out this month whether this is just a look back on what has been a difficult couple sessions here or more of a preview to come. >> seema mody is standing by at the nasdaq marketsite at times square. ugly day. >> tough day. tech stocks that have led the nasdaq higher in july -- apple, microsoft, intel, facebook a well, these are the stocks that are selling off. in fact, the nasdaq is now erased its monthly gains for

july. its first down month since april. now chip stocks are also playing a big role in this sell-off. micron tech down 5% after samsung said it is adding supply and d ram. the market fear is that this will cause pricing to weaken for micron. micron tech, worst performing stock on the nasdaq 100 in today's trade. the other area that we are seeing sharp losses, the russell 2000 down 6% in july. b of a/merrill lynch says july has been one of the worst months in recent history for small caps versus large caps. despite the sell-off, value u sags, still expensive. that's a concern when you see such a big sell-off in the russell 2000 because it is an index that houses a lot of domestically oriented names. small cap index down about 2% today. >> ouch. seema, that's the only word we've got for you. how are our traders here at the new york stock exchange reacting amid this sell-off? >> joining us, peter costa from

empire executions, gordon charlo pch charl charlop. >> you got to look for 1,900. >> is that the next spot you're going to watch. >> gordon is more of a technical analyst than i am but i think 1,900 is a good spot to look. i do think we'll see it. >> it's interesting, bill, because right now the imbalances are leaning to the sell side. almost across the board. but the thing is, what will we see? it's been interesting here because the last half-hour we've also gone down maybe another 50 points on the dow. are we building momentum or are we going to start to see this thing stop? really it is sort of what happens at the end of the day. then overseas, and early tomorrow morning. if this thing starts to pick up momentum, we could get down to 1,900. >> the 300-point mark -- this is kind a down draft, peter.

what does simply a trading session like this tell you? >> well, it tells me that there are some people taking money off the table which you know the costa family fortune is light right now. thank you very much. now everyone in my family can stop calling my house. but no. i think a lot of money's coming out right now. i think there is a little bit more risk. looking at argentina. people are looking at hedge funds having some kind after call on that. >> if we're talking about program driven trading because of higher rates, what have you? is this an opportunity for people on the sidelines for the last 300 points to the up side? >> gordon, you want to answer that one? >> you've been loaded up in cash, you waiting for the opportunity, what are you doing? >> no, i'm not buying anything right now. as a matter of fact, i think there has got to be a blow-off. i think there has to be a volume-wise blow-off. >> you mean more sales to the

downside. >> this is not a significant amount of volume but i think you see a significant sell-off where there is large volume, i do think that's the time to get back in it. they be you can enjoy the next run. >> earnings have been coming in here. what changed? the argentinean default? >> a little sage rattling between russia and the west. >> we've had that for two weeks. >> maybe argentina spilling over, people thinking about europe again, then there is always the middle east. gold's down, oil's down, stocks are down, it is the last day of the month. >> is that the significant point to be made? maybe they are getting out for the end of the month for some reason? >> that seems to be part of what we're seeing. guys are looking to sort of color their books. >> if we can show as we are off 300 points what's happening with the 10-year u.s. interest rate. in the last 24 hours people are starting to think about a world beyond fed accommodation to the extent that we've seen and in a world where labor costs are moving up as we learned this

morning. gentlemen, in that scenarios -- which is a better scenario for the u.s. economy, if this isn't an international tension kind of sell-off, shouldn't this be supportive of better stock performance in the long, long, long run? >> oh, absolutely. long term, you know what? i'm very bullish long term. i think that, like everything you just said is a reason to be long term, bullish. to me this is a short-term event. to me we are expecting this. we should see this. you are talking about a market that has been on a tear for over a year-and-a-half. you know what? to have a sell-off and to have something significant happen for two, three, maybe a week, whatever, to me is not that big a deal. i think it is a little scary, but it is not that big a deal. >> we'll watch this close here in the last half-hour and whether this spills over into the overseas markets as well. right? >> yeah, bill. if we get some serious sell-off, there is a sense of emotion. even as we feel in the room right now, peter and i are

veteran traders, there is no sense of doom here. >> not at all. >> if cooler heads prevail, there will be a reason to start buying and maybe sooner than peter. i'd hate to think that peter would miss that bull, that this mega bull would not catch on that that. >> you guys have each other's back. >> yes, we do. heading toward the close with 30 minutes left. the low of the day, dow down 1.75%. our panel of mainstream investors weighs in on today's sell-off. stick around. what they're doing may surprise. when we come back, two wall street pros shed some light on argentina's default and its potential to dent your portfolio. in fact, it could be happening right now, as a matter of fact. find out how worried you should be about that when we come back after this.

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the dow down 292 points. the nasdaq down two%. we're at 1,933 right now and volatility of course goes the other direction up 27% right now. >> finally, that strategy making a little bit of money today. one of the only parts in the market. with today's dramatic market drop, many eyes looking towards argentina for the possible reason. >> the south american country defaulted last night. today, depending on what time you look at deadline. many believe that started the negative sentiment that we are seeing here leading to the broader sell-off in our stocks. but will it have a lasting negative impact on the markets? >> our kate kelly has been following all the action. she joins us now, along with charles schwab chief investment strategy liz ann saunders. welcome to you both. liz ann, clients ask you, we're going to ask you, how much is this in argentina? talking about 300 points off the dow right now. >> if i were to rank what's

causing anks in the market today i would not put argentina at or near the top of that list. think there are plenty of other factors going into this. remember argentina's actually not in the emerging markets index, it's not in any of the major international indexes so it can't mathematically impact broader market indexes. it can have a psychological effect but i really don't think that's top on the list today. >> especially when you consider already talk that maybe a jpmorgan or citi will step in. we just noticed that the president of argentina's about to speak in a little while here so you wonder what's coming out of that as well. >> we're waiting for that commentary right now, bill. i would expect to probably see more of the same rhetoric we've seen in the last 24 hours suggesting that the hedge funds that arguably pushed argentina to this position, that and a judge's ruling are vultures, extortionists, they've been quite uncharitable about the

u.s. judicial system, as well as the mediator appointed to broker a solution. i don't know how likely it is, but it is possible we are on the brink of a resolution here using the private banking system. there are argentine banks that would like to resolve this by buying the hedge fund positions, the hold-out creditors. it is possible jpmorgan, citi or together might get involved. maybe that would be kind of a positive end to this painful chapter. >> if you're an indebted nation, certainly we look towards africa, parts of peripheral europe, and the rulings that have come out of new york city in this particular case would suggest it will be much harder to extinguish debt going forward. is that a worry here? >> i think it is more of a worry for argentina. i'm not so sure it is a thing that's plaguing us. the whole notion of sovereign debt default is something that's just disappeared post financial

debt crisis but i think it is limited to very specific countries and i don't think it has the contagion effect it had several years ago. >> did i see a headline the other day that said liz ann saunders was looking for a 10% correction. >> it is hard to say but i think if you are going to focus on things international, i think it is weakness in europe, particularly in germany. companies are starting to see these sanctions could impact them. but back to the u.s., we're spilling a lot of angst right now about heading toward monetary policy. a correction if that time frame is not all that normal particularly in the last two cycles of greater fed transparency. you've gotten these mini corrections commonly as you head toward the first rate hike. it does not tend to mean the end of a bull market. >> even if you just anecdotally, i speak to a lot of hedge fund managers as part of my

reporting. people have been telling me for months now that they expected to see a correction at well. they just thought it would not be another quiet summer, that the market isover valued. obviously this is the subject of great dispute but there is a camp that thinks we'll see a significant leg down, maybe even right now. july or august was always the time frame i had heard. >> i don't see the basis for a significant correction here. disagree with the notion that the market isov overvalued. it is no worse than fairly valued. i think the bigger problem was sentiment. sentiment had gotten stretched. complacency was in play. that just sets the market up to be vulnerable to whatever the news is or collection of news. i think that's what we're dealing with right now. so i see it more on the sentiment side than the valuation side. >> when the vix got down to 10 and 9 at these levels, there's and element of complacency. see you late. heading toward the close, 22 minutes left here. we've come back a little bit.

the dow was down 300 points a few minutes ago. now down 276. the other major averages have come back a little bit as well. don't want to make too much of it yet. a monthly roundtable of retail investors tells us how they are holding up against today's down market. are they buying into the sea of red? we'll find out when we come back. so we're all set?

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we're doing a tech startup. we're going public! [cheering] the fastest in-home wifi for your entire family. only from xfinity. welcome back. our bob pisani is on the floor of the new york stock exchange all day as the sell-off has intensified. we're off the lows now but just barely down 272 here on the dow. >> the s&p, part of the problem, you were kind of doomed whether we dropped below the lows of the middle of the day. we hit just about 3:00, we dropped below the lows earlier in the day. day traders come in and they try to buy the lows. when you suddenly drop below that late in the day, you can't dig out. everybody just abandons things. it gets tough to move into positive territory. no shortage of reasons for today. good heavens, we have five or six of them. you pick your choice what you think is the most important. portugal, ukraine, argentina, the u.s. data reporting and earnings. entering a seasonally weak

period. i still think it is a staij strange day. if you were to tell me the s&p is down 2%, yet bonds are very little changed, i find that a little strange. this was a global flight to safety. just get me out of here, i want to go to the united states. if i were from ukraine, portugal and argentina, i would be digesting this strong cost/employment index number. don't tell me it is selling off the russell. everything's selling off today. the russell is down, the s&p is down. that's not much of a difference to me. this is not about selling small cap stocks at all. i'll tell you what will be interesting tomorrow. if we get a very strong number on the jobs report -- i mean well north of 250,000 -- you can be sure bond yields will move up and that will and real test of how the market behaves on the first day of the new month. >> boy. just waiting for that jobs number now. after all we've been through

this week, and this day, that is just the cherry on the top of the icing there. that is going to be crazy. >> we only have 17 hours to go. we should put up a countdown clock. thank you, bob. we want to know main street's reaction to today's market sell-off. liz hollingsworth, an entrepreneur and franchise owner of 360 painting. ben becker an mba student at the university of missouri. and david meyers from common man invest investor. >> nobody looks like they're panicking. >> liz, let me start with you. i read here aside from owning this 360 painting franchise you have about $40,000 in the market. on a day like this, are you buying? selling? >> well, i tend to take the conservative route. so right now i'm just standing by. >> what are your holdings currently? where do you think there is most opportunity in this market? >> well, i believe a company

like procter & gamble is always going to be strong. household goods that we will be using. i also -- i'm from texas. i think oil and gas is always going to be strong. and water is going to be the new big commodity. >> she's playing water there. ben becker, our mba student, you call yourself cautiously pessimist pessimistic. what does that mean? >> if you you look at where valuations are on a broad spectrum, it kind of seems that we are -- while they can't be used for timing, necessarily, we are a little bit above where we have been historically, on average. so something like today is kind of needed. if you zoom out from just today's action, we're still really high in terms of valuation perspective. >> so are you inclined to want to buy a dip like this? what do you do? what do you think when the market does something like this on a day like today? >> so, on a day like today, in the situation that we're in, no,

i'm not buying a dip. if we were a few handles lower on the s&p, if valuations weren't where they were relative to their long-term history, a dip like this might be something that i'd buy. but not today at the levels where we are with the unprecedented fed action that we've had. >> david meyers, do you feel differently? >> i do. i'm actually buying the dip right now through shorting the vix. i like to play that when it gets a little bit extreme. when you get huge pops like today, i actually dipped my toes selling short in the vix and going with some etfs. >> wti is something i study reentlessly. we're still within 5% of all-time supply highs. the only reason we are as high as we are is based strictly off of fear from iraq, iran and even ukraine. >> i see you're also short gold. i was wondering if that ties in

to what you are about to say. >> i'm sorry, i was going to elaborate a little bit more. i was going to say on wti itself we're actually taking half off because we had such a good day shorting oil. but gold i'm not shorting it currently. it is something i have in the past and have been in and out of it. i think we're kind of at a point where it is no longer a fear trade. people love to play the vix instead. >> liz, a lot of talk this year about the level playing field relative, wall street versus main street, maybe the individual guy, the little guy is not in this market for the most part because they can't get a square deal from the stock market. you are in the stock market. do you think it is rigged? >> i personally don't think so. >> i was asking liz. >> sorry. >> no problem. >> i don't think it is rigged. i have faith in the market. >> liz, you're also in one of these investing clubs. the other related point about this is how much is there

participation in this market, do you think? >> well, today, of course, has been a very busy day and the past week has been a very busy week and i'm not sure how long that it is going on. >> ben becker, what are you going to do? do you see the market finishing higher for the year? is this the beginning of a 10% correction? what are you thinking about right now as we go through this 300-point sell-off here? >> yeah. i'm not trying to call the top or anything like that. i'm just -- if you think about it from a longer term perspective here, the five to ten-year perspective, we are at levels where we haven't been for quite some time. it might go higher in the short term but eventually we're going to return back to the averages. so as a young person i'm currently building my portfolio. i'm somewhat invested right now but i manage a virtual portfolio as well of about $100,000 and that's about 12% to 15% cash.

so i'm waiting for a bigger dip than this. >> just last question, ben. are more of your friends getting involved in this market, or no? does it remain a niche thing? >> sure, i'm getting questions all the time, where do i put this, what do i do with this. right now i'm telling them to just kind of hold on and wait. >> all right. >> thank you all. that was great stuff. appreciate it. i love talking to individual investors. i think it is very instructive. >> the pulse of what he was going on out there. with 11 minutes to go, dow jones industrial average off 294 points. having one of its worst days of the year by far. the s&p 500 is off 36 points at 1,933. the nasdaq is off 85 this hour. we are watching rates, watching the u.s. dollar, watching gold and oil, trying to make sense of what's going on. and we're watching earnings. we'll tell you numbers to watch out for and bring you those number when they hit the tape at top of the hour, including tesla, linkedin, expedia and gopro.

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so we are setting lows as we head toward the close. we got 7 1/2 minutes left in the trading session. the dow now down 306 points. look at the nasdaq down, 90. more than 2%. the s&p well below the 1,950

loe level some traders looked for support. we're very close right now but we are not finished. earnings galore in just a few minutes coming up. bertha coombs has the names and numbers to watch for. >> it is going to be another very busy afternoon after the bell. we'll start with tesla. investors are focusing on the electric carmaker's upcoming plans for its factory where the company will house all of the parts for its vehicles. the street is looking for a gain of four cents on revenue of $811 million. expedia, the travel company, is -- folks are looking for the onlan travel company to report second quarter earnings of 76 cents a share of revenues of $1.44 billion. expedia has beaten forecasts in 8 of the last 10 quarters. current quarter is usually their strongest quarter.

analysts expect gopro to earn six cents on revenue of $238 million in the second quarter. and linkedin as well. we'll get all of those for you after the bell heading over to the earnings desk as we speak. >> thank you, bertha. heading toward the close and it looks like we're heading lower. we'll get to the closing countdown if a moment. then after the bell, the pros tell us what tomorrow's closely watched jobs report may bring. should you prepare for another sell-off or could that number bring the market back? we'll find out. you're watching cnbc, first in business worldwide. quires challr 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.

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three minutes left. i think bob pisani said it best, don't try to pit one index against another. they're selling everything today. with the four major averages, the dow down 1.75%. nasdaq down almost 2%. the s&p, well below that 1,950 support level. now down to what peter costa was talking about, maybe 1,3930 the next support level. we're only three points away from that. wouldn't you know, big earnings reports as we get ready for tomorrow's jobs report as well. but tonight we get tesla which is down 2%. gopro, bucking that trend, up 3%

today. linkedin down 3% and expedia also down 2.5% right now. joining bob and i, greg from high tower, what do you make of a day like today? do you expect more selling and want to buy that or what do you think here? >> this is the volatility we've been expecting. it has been a great 18 months. investors have been spoiled by the equity return so far this year. i think it is a combination of the geopolitical factors, some concerns about janet yellen's discussion. but i think this is really for people underweight stocks, this is an opportunity to re-engage and get appropriate allocations. >> back at a two-month low right now. >> i think he's got it right. it is about global fears, to a certain extent. you're argentina, portugal, ukraine. but i really think growth fear is the big issue. i think digesting that strong gdp, digesting that strong employment cost index report this morning was a big issue. markets are very worried about interest rates. >> if we get a strong jobs

report tomorrow morning, do you think the selling continues? >> the only thing that's really going to kill this rally, really kill it, is a sudden rapid spike in interest rates. it's not the ukraine. it is -- so 2.6 is here. by the end of the year or january, february, 3% and the economy is stronger, fine. but if we go from 2.6% to 3.5% over the next month, that kills the rally. controlling that i think is a major concern. >> everything janet yellen is suggesting, that rates will not skyrocket, think you'll see a thoughtful, gradual increeasinc. if you look historically how the market respond, it is because data is getting better which is conducive for stock prices. >> the jobs number, the expectation is $23 0 230,000 is my ouiji board said. however, if we go to 260,000,

really strong numbers, we'll see pressure on that 10-year. >> thank you for joining us. stay tuned. it is not over yet. what a wild day with the dow down 300 points. now some very big earnings reports and a preview of tomorrow's jobs report as well on the second hour of the "closing bell" with kelly evans. i'll see you tomorrow. thank you, bill. welcome to the "closing bell," everybody. i'm kelly evans and the dow jones industrial average is off more than 300 points as we finish out the month of july. here's how it finished up. across wall street, the dow going into the close, looking ahead to see how things settle off. there was probably $1 billion worth of sell orders here on the bell which put some pressure very late in the session on this indecember. looks like it is going off at the lows of the day, off 315 points. one of the sharpest sell-offs we've had all year in quite some time. complacency, tranquility has lately been the name of the game. now that index tra, the russell0

over 2.3%. the nasdaq shed almost 100 points today, off 93. the s&p 500 off just about a round 2 pr%, 1,930. just a couple of sessions ago we were talking about 1,970. let's get to it with our panel to sort through all of this and what happens now as we enter august. lynn tilton, jon najarian, scott cohn, joining us shortly from the floor, "fast money" trader steve grasso. we're eager to get everybody's thoughts on this session. dr. j, start with you. can you tell us broadly speaking whether you think this is yeay, or no, there is a lot happening internationally we should be quite concerned about. >> i think it was internationally. i think it was argentina. i think it was the chicago pmi if we want to look within our

borders. the chicago pmi was just miserable, one of the worst in 13 months. i think all of that augers towards rates staying lower for longer. i have made that argument before. bill gross has made that argument. he's got a few more shekels in the game than i do. unfortunately, that's the world i think we're in. adidas saying what they said about russia and those sanctions meaning rates could be pushed lower as well. >> you're in the slowdown scare camp. >> yeah. i'm in the slowdown camp. and for that reason i think it gives the fed more room. i don't think they'll move before -- out of the rest of their tapering until october, kelly. i don't think they accelerated. tomorrow's jobs report is important, but it would have to be blow-out and certainly the adp is not saying it is going

to. >> scott, what say you? >> i think it has the feeling of a little bit of flight to safety but not complete flight to safety. you didn't see people going into the long bond but they're going to the dollar. they're going to short-term treasuries. there is a little bit of pullback here. it is an uncertain kind of market and maybe there's the healthy correction. every excuse that you want out there to sell. international tensions. the worry about things picking up and interest rates tightening. but nobody -- it's not conviction. right? we're down. we're going to the side. we're parking our money in places that are good to park our money. >> expedia's out with results. let's get bertha coombs to hit those for us. >> monster beat. we have expedia report 1$1.03 versus 76 cents a slayer. revenues came in at $1.49 billion. the company also is increasing its dividend by 20% to 18 cents. it said that room reservation

bookings, gross bookings, increased 29% in the quarter driven by room night and air ticket growth. room night was driven by brand expedia including travelocity, hotels.com. if you have booked something recently online, chances are it is an expedia property. stocks up 4.5% following this report. >> bertha, thank you. a couple of other safe harbors, gopro earnings are due out shortly. >> i think it could help this market but this is deeper and more profound than that. the real question is, what has driven the market today. a lot of that is the central banks. have we gone too far. i mean is the news going to outweigh what the central banks have done, or is it time to pull back and look at things. also, we live in a global world. there are a lot of bad things going on and there is a lot of

unrest and there are a lot of people who are concerned. i think earnings can help but i don't think it can save. >> how is demand at your companies? talk about autos. talk about the u.s. consumer. you are very exposed there. we've seen trends lately improving. >> i think it depends. i think bond numbers have been great. there's been liquidity and people have been able to borrow. i think consumer products actually have not. if you look at walmart's numbers and a lot of the other retailers, you aren't seeing people buy a lot of goods. they are choosing those things that they really need or those things that they care more for, like technology. >> steve grasso, just so people can put this sell-off into perspective, the s&p 500 looks like it's just had its second-worst day of the year in terms of point sell-offs. the dow finishing off almost 317 points. what do you read from this behavior? >> everyone always asks you that billion dollar question, was there any panic on the street today. i didn't see any panic but there

was definitely a lot of hesitation on that by the dip mentality. so if you really start to -- if you really start to look at where the market is, the 50-day moving average and the cash, 1950 pierced that. since last may, june, we pierced both the 50 and the 100 five times. we have yet to pierce that 100-day moving average any time soon. for me you got to look at 19.10 s&p cash. look for that dip on the way up. this had a different feel from the other sell-offs. we've haven't had anything with really any bite whatsoever. this morning when we came in, could have been argentina, or europe being weak. any number of overseas earnings. but it was everything put together. it's been a long time since we had a whole mishmash of whole negativity. >> steve, real quick. this is jon. when you see what happened

today -- i agree, all those are contributing factors. and we are unlikely to have back-to-back contributing baing factors as we did today. but with jobs tomorrow, don't you thank was tink that was the people hesitated on that buy button today and that after jobs tomorrow we're likely to see a lessening of at least the fear, unless we have one of those other issues come up? >> real quick, i think once you start to throw in wage inflation, i think people don't know how to interpret that. it is sort of a rates going too high or rates staying where they are, what's bullish, what's bearish. all i do know is people will read a lot moore inre into yell speak and people with not-so-itchy a trigger finger coming up. julia boorstin has results from linkedin. >> linkedin reported earnings of 51 cents per share, that's

compared to expectations of 39 cents share. up from 38 cents per share. revenue beat estimates at $534 million versus expectations of $511 million for the quarter. the company raised its guidance for the third quarter to just above expectations, raised gu e guidance for both revenue and earnings. looks livg the full-year guidance is higher as well. back over to you. >> julia, thank you. looks like we're seeing a move higher in linkedin shares. better than 10% after-hours here. significant change from what we saw during the trading session today. dr. j, with a name like yelp getting whacked to the tune of 11%, is that because not all votes are lifted by the social media narrative at this point? >> true. it is about that engagement, how long do they stay engaged. those monthly active users. that mau that we talked about. obviously linkedin hit that in spades here. yelp, not so much.

>> tesla's results hitting the tape now. phil lebeau has the details. >> kelly, much better than expected. the estimate on the street was for tesla to earn 4 cents a share in the second quarter. tesla earning 11 cents a share. that was better than expected. those some whispered it could be closer to 11 cents. as far as revenue, $858 million compared with an estimate of $811 million. well above guidance there. it is really what they did in terms of model s deliveries and production that will get a lot of attention. for the quarter they delivered 7,579 model s vehicles. slightly above guidance. they produced 8,763. that's an increase of 16% compared to the same quarter of last year. they're on track for delivery of 35,000. remember, that's their guidance for full-year deliveries of the model s. a current production schedule, they are building 800 model ss per week. then there is the giga factory. they are confirming that they

have broken ground on a possible giga factory site just outside of reno, nevada. however, they are also considering multiple sites an they do plan to break ground on one of those sites for a giga factory in the next few months. there you have it with tesla beating the street, 11 cents a share, versus the estimate of four cents. >> a lot to digest. shares now slightly positive. ross gerber, what's your reaction to these numbers? >> i love them. i'm very pleased with the numbers. they beat on revenue and killed earnings. tesla is one of the most important companies in america today. we need to go to an electric infrastructure for automobiles. look at the wars all over the world. i can't take it anymore. the killing over oil. so tesla has a great growth strategy when you think about five years from now, tesla's all over the roads and a $35,000, beautiful electric car, who's

not going to want one of these especially when it is saving the environment and stopping war? is. >> gopro results hitting the tape. seema mody has the numbers. >> gopro reporting second quarter reports, a beat, eight cents versus an analyst estimate of six cents on revenue of $245 million. that above street estimates of $238 million. it in fact saw a 38% jump in sales year over year. but despite that beat we are seeing a move to the downside in after-hours trade. gopro shares down better than 10%. the bar was set high for gopro. the shares have gained 97% since going public in late june where it traded at $24 a share. the conference call does begin at 5:00 p.m. eastern. we will be looking for details around how ceo nick woodman and

team plan to make gopro's cameras and devices loved by not just consumers with an active lifestyle but every day consumers. that's been seen as a big opportunity by animalysts that i've been speaking to. plus, how do they plan to capitalize on its media content. that will definitely be a question as well. gopro best known for its high-definition cameras. company beating street expectations on its top and bottom line but we are seeing a drop in after hours by about 10%. >> we want to spend a minute talking about gopro. one of the worst market days in the dow in some time. brian hamilton from sage works. brian, first to you. what's your read here? this is almost a 10.5% move to the downside in shares of gopro? >> i'm not super shocked. i was really high on the

company. they're profitable. the sales are really good. management's great. the product is great. but right now they are overvalued. basically they're double the relative value that they were when they came out. that's the real problem with this stock. >> is there anything, mr. grasso, dr. j, that could have supported gopro shares? was it inevitable it was going to disappoint? >> just think about it. doc can talk his ideas as well but for me it's always been a little bit more of a macro. there's not real barriers to enter here. when you play this from the long side, it looks like if you're talking about content, media content, talking about youtube, then you look at maybe google takes them out. but maybe they are looking for a little bit better valuation. maybe if it goes lower, you could see somebody take these guys out but i can't imagine -- people want to know if we have devices, right? smart watches, cell phones -- >> we don't have smart watches thon set. >> are you going to be wanting something on your head?

how narcissistic is this? i know the cast we have right now is pretty narcissistic. there are enough people out there that are going to wear it on their heads. >> steve, do you have a smartphone? >> i do. >> the difference between a smartphone and some of these other smart devices is -- >> just one extra thing to buy. >> you hold it instead of put it on? >> the thing is, why can't you have -- you could have the apparatus or hardware to slip in an iphone versus a gopro. so all that other collateral products that are going to be advented, you can just as easily put in an iphone. cameras get much better with each new generation of an iphone. >> but you don't strap your iphone to a drum and risk losing it. >> 42% is their gross margin. something like that. it is up ten points over a year ago. that's huge as far as gopro. looking for that piece of good news there, the fact that gross margins are up is positive for

gopro. >> let's go back to tesla. lynn, you drive a tesla. what do you make of this report? >> look, i think that tesla is going to make their way in to the market in something that was very difficult, to be a start-up company against the big guys. i think it is a good report. think they're only going to get better as they are able to create this less expensive car. think they've teased the market. it is a great ride. it hats best infotainment system that i've ever seen in a market where new drivers really want that entertainment experience. it is really, i think, the one to watch, both in terms of being electric but also the consumer experience. and the young people want the entertainment experience. it's dead-on. i think it is only going to go from here. >> ross? geopolitics aside, what about the valuation argument and how convinced are you that tesla will be able to meet what are some pretty lofty expectations

around the name. >> they said snapchat is worth $10 billion today. tesla at $25 billion seems really cheap. but you got to think about the future. the future is about electric cars and they are the only player. if you think about it from a patriotic perspective, this is an american car company that can put the russians out of business. they're selling us oil, all this oil. we got to have an electric infrastructure built in this country. that's why he's giving away the patents. the giga factory is being built now. in five years there are going to be teslas everywhere. if you think long-term, this is an amazing investment opportunity. >> there is another wage of the future here. bear with my state competitiveness geekiness here. the nevada site for the giga factory and what they're looking at. they're looking at location. but they're also looking at vertical integration which is something that the big three had sworn off years ago. so they're going to go for economies of scale with their

own plant, near their assembly plant. so they're looking at infrastructure, which is something we look for in top states for business. but technology, innovation, education, nevada is terrible for education. but that location situation is something that we see again and again and it is very interesting that that's location for the first, at least, giga factory. >> there is a reason for that location, too. taxes and labor laws in nevada are so much better than california. i wish that wasn't true. that's the closest place you can be to california and still get nevada laws. and also the cost of land. a lot cheaper in nevada than california. >> yeah. guys, i want to quickly go through the earnings for people who are getting up to speed. against the backdrop of one of the worst market days that we've had, pretty big moves after hours as well. gopro, tesla, a number of companies people are wafg for to see if earnings in fact can find some fundamental place for this market to rest. do you think that this changes the narrative at all going into tomorrow from what we otherwise

would have had after the sell-off today? >> it helps. but it will be about jobs tomorrow, kelly. until the jobs report comes out, that last little bit that i was talking about with steve grasso about uncertainly, that's an uncertain jobs report pun certainty builds in to the vix, the volatility metric, that people panicked and they were chasing today. i think a lot of that bleeds out tomorrow. also got the usual time decay over the weekend. so i think after the jobs report tomorrow we'll see a different market than we saw today. >> okay. we'll leave it there for right now. guys, thank you for being with us. a busy couple of minutes as we ripped through these earnings. steve grasso will stick around with the "fast money" crew at 5:00 p.m. they'll talk with dennis gartman about this market sell-off and much more on tesla's results here. someone who's short tesla will be here. did the numbers change minds? we'll find out. also, will tomorrow's july jobs report help the market rebound from today's huge

sell-off? we'll get into this a little more on the "closing bell." you are watching cnbc, first in business worldwide.

welcome back. we pick up here with our coverage of tesla's earnings report amid this deep market sell-off today. joining us now for more thoughts, craig irwin, buggish on tesla. john thompson, who's shorting the name. craig, first to you. look, i guess tell us what you see from this earnings report and what you see shares doing long term. >> this was a great quarter, deliveries just ahead of guidance. we were a little bit cautious about the furlough impacting the third quarter. that was not as big an ill packet as we thought it would be. what's really exciting in this report is they're saying a delivery run rate for 1,000 vehicles annual by the end of 2015. some of the numbers on the street might be low. >> john, hearing that please react. also looking at shares of tesla moving around slightly to the downside now after hours. your position is what? >> we're short the stock. we just don't think they can

live up to a 200 pe multiple expe this year. even if they sell a thousand cars, all stocks eventually trend towards 20 times or 20 times towards earnings. it is too expensive. >> are you willing to bet to this extent against elon musk? >> elon musk and jeff bezos to an extent i think are kind of like steve chase and john chambers of the late '90s and early 2000s. they've got these cool companies that are -- everyone seems to love from a long-term perspective but the stocks are massively overvalued and both those executives were dead-on right about the internet in the late '90s, but the stocks lost 90% of their value. we think a similar type of thing will happen over time with tesla, et cetera. >> lynn, you're much more

positive on this name. what do you think he is missing? >> i'm very positive on the company and the future of the company. don't necessarily disagree that there might come a time when pe multiples come down and anything disruptive or tech-like. the question is can you market time that. but in terms of the future of the company, i'm very positive on where elon's going and i'd never bet against elon. >> even at a 200 pe, dr. j? >> even at a 200 pe. because they're on track for the 35,000 cars that elon said they'd deliver. they are making more than people thought per quarter and they've got that new model coming out. elon musk will talk about the giga factory, that third mod. le coming out for them. that will be big. and that's beyond the suv they've got coming out just in the next couple of quarters. >> how much are you going to pay for musk?

it is a company that appears to be here to stay. clearly a lot of people believe what he's doing is right but it is an expensive stock and it depends on how long you are willing to wait for it to catch up to that. >> why does this company deserve a 200 pe? >> annualized delivery rate, 100,000 units at the end of '15. that would suggest they're up 100% from what i have modeled for the end of '14. this company is a growth company. over longer term you'll see impressive earnings. is it possible to have $50, $60 in earnings several years down the road? yes. if that's the case, then it would be really, really cheap right here. >> do you worry about the backdrop right here? stocks pretty much erased the gains for the year. some of the growth names have gotten hit. not just in today's session but back to march-april. tesla, against that backdrop, seems to be holding up fairly well. >> no, they have a supply problem, not a demand problem. there's plenty of demand for

their product. they're just breaking into china, the world's largest luxury automotive market. what they've got to do is increase capacity aggressively to deliver on customer demand and bring out these new models that i think will have similar market appeal. >> what's analysts trading down to what it may be 20 or 30? >> as companies grow or mature, the market will figure out that they can't grow into the multiple. i -- going back to the future of the car -- i don't think it is electric, to be honest with you. i don't think there is a massive market for cars that will go 200, 225 miles. i think the average person needs a car that can drive to grandma's house in boston or something like that. you just can't make a trip easily with an electric car because the recharge time is just -- just takes too long.

>> i would differ with that. so you've got tesla selling the model s. basically drive train cross pair with comparable vehicles. cost parity on the drive train. cut in half. then they're going to bring that same technology to a mass market vehicle? >> with the electric technology? >> yes. >> that's going years ago assuming they can survive this cost savings. >> it is unprecedented. that's why it's getting a lot of attention. their execution is consistent with what they've laid out. based on technology, we think they can do it. >> let's have one more look at tesla shares. we'll leave it there for now. craig irwin, john thompson, we're slightly positive after hours. we'll see if the call changes any of that.

stocks sufficienting a huge sell-off on wall street. is this the start after long-awaited correction? it's been years since we had a move of 10%. or is it a tremendous buying opportunity? that straight ahead. from tesla to gopro. the earnings are coming in at a fast and furious pace. and a jobs report that could move markets tomorrow. more when we come back. if energy could come from anything? or if power could go anywhere? or if light could seek out the dark? what would happen if that happens? anything.

street. believe it or not, stocks erased all of their gains year-to-date. bob pisani, what was behind all the red arrows? >> two major reasons. one, global concerns. pick your choice -- portugal, ukraine, ashlg trgentina. then there were growth concerns in the united states. a ve the s&p, there were attempts to buy the market in the middle of the day but it all fell apart close to 3:00. when you drift lower during the final hour, day traders said i'm not holding on, and they basically sell very quickly. another factor that was very important today, was very disappointing guidance or commentary from a number of companies. adidas down.

the whole group is down for the year. transports were weak. roadrunner was a disappointment as well. sectors were affected by disappointing earnings or commentary. if this was a big concern about let's get out of the world and go flee into the united states, i would have thought bond yields would have been down, but they weren't. it was a seesaw day back and forth. that's why i think this is a lot about growth concerns. this is an issue about whether or not the u.s. can handle stronger growth and about those interest rates. tomorrow we get that jobs report. 230,000 is the expectation. but if we get 260,000, 270,000, bond yields will move up. then on the first day of the month with not a lot of other factors, we'll see if the stock market can handle that. back to you. >> that's is the question. bob pisani, thank you for now. can a strong july jobs report send stocks surging back tomorrow? is good news bad here because

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not a pretty after-hours session there for gopro. aside from being the worst day for markets in nearly four months, it is also the last thursday of the month, which means a new employment report is out tomorrow on the first friday of the month. the question is whether it will trigger another amount of market action we saw today or the opposite. cnbc's steve leisman, along with diane swamp, and the panel, welcome to you all. diane, first, how strong does it have to be to not spook the market? >> i think it's got to be pretty weak to not spook the market at this stage of the game and i think it will be a strong number. we have seasonals in our favorite, state and local governments adding instead of subtracting. i think we'll see 280,000 tomorrow, and that will be on the low end.

i think this is -- the markets are getting ahead of themselves on rate hikes. >> steve, is good news good tomorrow? is bad news good? i mean by that, does that get the market to rally? explain where we stand right now. >> in the market's opinion or in my opinion? those are two different things. i'll tell you why. i think the market is probably going to see good news as bad news tomorrow. but i think ultimately investors will have a choice in front of them, choosing between less fed accommodation or a stronger economy. i would take a stronger economy and less fed. i'll take that trade any time. if i was talking about a market with a pe multiple of 18, 19, 20 or above i'd be afraid. i don't feel like if i listen to the market guys hey listen to carefully enough, i don't see the overvaluation here. say the fed ends up moving earlier.

first, talk about the parameters we are talking about. does it mean a mid-second quarter move as opposed to an early third-quarter move? talking a year-end rate of 1% or 1.5%? >> dr. j, does that mean that the concern here about rising inflation, even wages, that that's all overblown? and what do you think happens tomorrow? >> i think diane's read is probably pretty good, we could be looking at a 260,000 or better number tomorrow. i think if the market sells hard on that, it will reverse. 10-year and some of the longer paper with what's going on with german bunds, as well as all those pressures we've talked about all day from argentina, europe and the rest, think we're going to see pressure downward on interest rates especially on

that end of the curve. but the 2-year is where the juice is going to be. >> we're back where the biggest risk is everything looks vulnerable? >> if we see anything strong -- the market today was probably looking for a strong report tomorrow, yeah, the market will not like it in the short-term because that's the knee-jerk. it means higher rates may be sooner and higher stocks automatically sell off. if the jobs are growing and the fed is going to get out, isn't that where you are supposed to be? >> the hawks are now starting to voice their views. they don't have a lot of meetings before they can. that noise we're hearing is that -- noise. it's important because we're talking up this sooner rate hike. that said, next year's fomc is

the most dovish fomc composition of voters that of we've got. i think the markets might -- we're not talking about a major spike in rates or or in inflation, either. if the fed does have to move sooner, hallelujah. >> there is the risk of a fed mistake. a lot of times when we get to places like this, the fear rises of a mistake. in this case i think the fear would be that the fed reacts too much to incoming data and moves faster than we think rather than the other side of it. >> that's not what janet yellen will do. >> i actually think the market is ahead of the economy. i'm with steve. i've always rather been on the real value than the economy but i think the market is ahead of the economy.

i think if you see a much stronger economy you'll see a market have to come down to meet and then get parallel with the economy, then move forward again. i think a strong number might lead to a pull-back in the markets. >> we could still be in that situation. we'll take it long term even if it means a little more pain after today's sell-off. august typically a weaker month but the discussion would turn quickly to inflation. still to come, we'll look at today's earnings and what's ahead for tomorrow. we started zya with the thought

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[ male announcer ] don't wait. call today to request your free decision guide and find the aarp medicare supplement plan to go the distance with you. go long. welcome back. a whopper in the markets today. that's scorching up "the hot list." allen wastler, i'd love to know the kinds of quotes people are looking up. what types of articles they're reading on a day like this. >> the short answer -- everything. when the market goes down, our readership goes way up. people piling in, piling in. right now they're still going flu our market coverage. i counted up, all of our market coverage today, about 150,000 people went in and checked it out in some form or another. a lot of those are repeaters. they keep connelling back throughout the day to check it out, collection it out. they come back. that sends our traffic levels up. bob pisani was talking to you about what the market did today.

he has a wonderful column he files around 10:00 earn morning with us. this morning he just laid out reasons the market has been taking a dive. people are banging on that all day long and it is still getting traffic. i always talk to you about the wise man effect? art cashin, we had a piece with him talking about danger points ahead, jobs report tomorrow one of the big ones, he laid that out. this is still getting piles and piles of traffic. it's all about the markets. wan to know what -- >> did loco get up there? >> it's been in my top 15 tickers every day. it's getting ridiculous. i just want it out of there right now. >> that's how people feel about some of the action in their shares as well. allen, good to see you. any surprises here? tickers are kind of the unusual

media names. >> i bet gold was one. because that's a head-scratcher. over the past two days, down about 2%. it was down better than 1.1% today, the gld, the big contract, the liquid one, the people that don't trade futures trade that. that's just a holding company. the etf for gold. >> that tells you ma maythat ma inflation isn't such a fear. >> that they're scared out of the market, they're not buying the gld, like scott says, perhaps because they don't believe the inflation is real, at least here. >> i think gold has a whole nother dynamic going on. i think a lot of people are out there shorting gold every time it gets to $1,300. i don't really think it has been in unison with the market or with fear or inflation. there's a whole different dynamic going on. i ten to be a gold buyer. i like gold. i think it is a safety net and i think that eventually it is going to come to parity.

but there are a lot of major shorts out there. i think people would be foolish not to have any gold in their portfolio. especially hard asset gold. stuff that i'm wearing or carrying in my bag. >> we'll leave it there for the time being. it is a wild hour for earnings. gopro's first report as a public company. bertha coombs will round up all the action when we come back. [ male announcer ] what if a small company became big business overnight? ♪ like, really big... then expanded?

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and get the fastest wifi included. comcast business. built for business. . >> expedia easily beating street expectations with earnings of doctor 1.03 a share. the online travel agency is increasing its dividend by 20%, expedia shares trading higher here by more than 5.25%.

linkedin posting better tan expected revenue results. helped by higher demand for its hiring solutions. the stock is currently up over 8.5%. and gopro is moving lower. investors are selling on the news here. the stock is kind of wavering. it's come off of the lows, right now down about 7%. sun power losing ground as well. the solar maker beating on the top and bottom line. it's third quarter earnings guidance a little lighter than the street expected. it has not raised its outlooks for the year. outerwall reaching down there to the downside. revenue came if below estimates. the big problem, fewer point of view dvd rules. june was the worst month since red box existed. they say tr four new video rent also. >> that meant that red box results were much lower than

expected. its third quarter outlook much better than the street was looking for as well. the stock right now off about 3.5% coming off the lows. >> bertha, a busy afternoon. we appreciate it very much. the bums in full retreat on wall street we preview wall street when we come right back.

. >> welcome back. tomorrow was always going to be a big day, but after the market action today, that is especially so. let recap the trading session. the dow jones average shedding 317 points. we saw the s&p giving up about 39 points. its second worst trading day of the year. a lot of indexs have turned the clock back to praktally january given the moves we have seen. that closes us out for july, the first for the s&p since january. now attention shifts to august. we will begin with a bang, coming up tomorrow, this is where i'd like to get some thoughts for the panel. we have pmi numbers, close to falling for the stockmarket. we, of course, have the employment numbers we mentioned. we also by the way will get car sales, we will find out koch situational spending. a lot going oranges where do we focus, lynn? >> i think you will see a lot of

mixed numbers. i think it will really be sentiment that drives the market. i think if we have another down day tomorrow, that will be very telling the correction might be here if people look at the market as a reason to step in and come back. so i think tomorrow will be a very important day. i do think the information will be mixed. >> you made the point earlier, dr. j, about the chicago pmi this morning. you can see this in the ten year, trying to figure out was this a slow down or speed up scare day. you had the cost index. you had the important regional pmi, which you think with auto sales and everything it would be better. it dropped ten points. >> right, it's participation rate, kelly. a lot of folks, including our rick santelli will be focused on a participation rate. what is the labor participation rate? easy for me to say. is it going to be as dismal as it has been? that's something i'll be watching and like i say, linkedif, i thought these

numbers were great. up 40% year over year internationally. that's huge for them. aknow mark andrusen. that will be a stock i'm watching and trading tomorrow. >> i want to circle back and get other ways people should think about playing this space. for tomorrow, it will set potentially houchl how much moment item we have in the back half of the year here. >> i think it flows from the jobs the participation rate. if people are coming back into the work force, does the unemployment rate pick up? that linkedin number, that's a job site and they're doing well, maybe that's an indication that the job market is coming back. our whole big slow down is five, six years into it, was at the heart of it a big loss of jobs. if people are coming back into the work force, if employers are hiring now, then it's going to be bad in the short term as we have been talking about but maybe it's a sign of good things

to come. >> give us an anecdote. i think in certain places, you are in certain places. you are not. i think it's the same tail of two cities. it's the same thing with certain industrys. automotive has been very strong, aerospace has been strong. consumer product not so strong. i think the participation is an important number. i think it's very low. i think we also see so many people have dropped off. i think people are out of the work force for a long time without some sort of training programs or vocational programs. it's very hard for them to get back in. that's what i'd like to see is training more people to get into the new technology and the new manufacturing of the america. >> for sure. let's have a quick look at the hardest hit areas of the market today, not just in terms of sector, but individual performers. on the dow, exxon shedding more than 4%. dr. j., we have already talked about gold, what is going on? >> that could be the dollar, what lynn spoke to about gold.

so if you've got the dollar which is up 2, 2.5%. >> that puts pressure on precious gold as well as on trades like oil. >> would you get comfortable waiting in at all? >> i would. because i believe there will be demand like crazy for fossil fuels. >> maybe not. >> yeah, tesla report. >> yeah. and the tesla report is blowing things away. i think the oil trade is interesting, if oil does stay low, another catalyst for the economy. >> yes. that's a great point. it will be a head wind for supporters if they need it. tesla shares are trading after hours. by the way, they reported earnings earlier this hour, they are down now more than 2%, just to round things out, we'll get the auto sales tomorrow and see how things are shaking out. my thanks, to the panel this afternoon on a busy and important market session.

we will see if mel lit sa slee ready as well. >> we both dressed for the market's tally. we have lots to talk about given this massive sell-off. we are going after traders as well as every one of our guests, what are the buying opportunities? there are some in spaces like biotech, social pedia and the industrials. so we will get it all ahead. >> straight over to you guys. >> thanks. fast.starts right now. i'm melissa lee. today the dow erasing all of the gains, the s&p 500 seeing the biggest losses. our traders are dan nathan, steve grasso, brian kelly and guy adami. the s&p, nasdaq, russell all down more than 12% t. dow down more than 300 points in one of its worst drops of the year. take a look at this the volatility index surge more than 25% today as investors pull up corporate protection. after hours movers were all over the