479 names in the s&p 500 lower. general electric, mcdonald's and microsoft are three names on the dow all reporting numbers, ge revenue dismissed expectations. mcdonald's blowing sales growth we have seen, stronger dollar hurt these global companies and microsoft weighing on the dow jones industrials talking about weaker demand and microsoft next week will have a big week as we wait for windows 8 but today you see it down 3% and mcdonald's down 4%. lori: we are digging into mcdonald's with susquehanna analyst rachel rock mama and of. melissa: oil down and fox business contributor phil flynn in the trading pits of the cme. what is at work here? phil: concerns about demand destruction and concerns about the economy with bad data and

concerns about europe, really didn't come to an agreement. it will be until the end of the year if they do come to agreement. you also have to look at the ongoing story with the keystone pipeline. the anomaly that took it off line didn't impact supplies and if it is brought back on line by sunday, still on target, it will impact the market a bit meaning it will go down a little bit. you also have china demand and concern that gdp was overstated because if you look at oil demand is down substantially from where it was a year ago. the demand is down 100,000 barrels a day. all that play today putting the sinking feeling across the complex today. melissa: natural gas it a fresh 2012 high. is there more room there?

phil: technically we're close to the top but i am amazed people are shocked. this is going to become winter right now and we had some forecasts despite the fact december will be warmer than normal, january and february supposed to be warmer. that is happening today. melissa: thanks so much. cyberattacks on financial institutions continue with a high-profile victim again. the strikes have gone global hitting with no warning. adam shapiro working the story from the beginning. talk about the latest target. >> when you talk about these attacks going global they have always concentrated on banks and financial institutions in the united states. group that claimed responsibility said they would continue these attacks until the video innocence of muslims is pulled from new2. we have seen great financial institutions attacked. now here is the statement they

issued to fox business about this most recent attack. denial of service attack did not affect any customer data but did prevent customers using hsbc online service including internet banking. we are taking appropriate action working hard to restore service, we are pleased to say some sites are up and running. we are cooperating with relevant authorities and will cooperate with other organizations that have been similarly affected by such criminal attacks. other organizations like fox business covering this story before it was making headlines in some newspapers, we were in their last week when it was capital one, regions financial that got attacked and capital one got hit monday, and just the other day and now hsbc. one thing we want to talk about in regard to these attacks, there are links to this organization to islamic terror groups and there's the group anonymous, they claim to be behind some of this but sources are telling foxbusiness.com that

these attacks have the fingerprint and signature of s hass hassam. you talk about these attacks becoming more sophisticated is like the board from star trek. they adapt to procedures instead of service attacks, the use entire web servers, allows them to concentrate the attack with your devices. melissa: great 55 reference. melissa: meredith whitney's two year anniversary is almost upon us when she famously predicted counties, cities and towns in the united states would have significant municipal-bond default in 2011 totaling hundreds of billions of dollars in losses. turns out she was a little bit off. charlie gasparino is here to brrak down. charlie: i can't think in my career more than 200years of a worse call than that.

maybe next year we hit the fiscal cliff and hundreds of billions of dollars of municipal defaults and the municipalities occur, but chances are unlikely and if you look at this year's numbers they are bad. the trend of defaults despite you read about one here in california and one in florida the trend is down over three years according to match fabian who crunches the numbers all the time. there are 1.1% of the $3.7 trillion market. the average default, municipality default is $30 million, not exactly massive and huge. if you look at default in 2012, $1.8 billion according to fabian, down from approximately $6 billion the year before, florida has a lot of defaults because it is not just

municipalities, these are private sector housing bonds qualified for tax-exempt status. they will have three defaults this year, an indication that housing market is starting to firm up. you have muni bond prices rising this year. listen to meredith whitney lost money. always a caveat. next year's fiscal cliff, this thing happened. two years, she said it -- more than two years. first she came out with a report she didn't publicly release, first to obtain that report, i obtained it. didn't have much in it and she started her road trip and went on 60 minutes in december and hundreds of millions of dollars and trying to back off of that saying since then got a lot of criticism particularly from us. justta little bit about me muni-bonds, they take a while.

they don't default immediately when they go into bankruptcy. not only that, they have reserve funds and start paying off. if you know this much bout the market you know she was off. and i like meredith. i remember when people said she was crazy by saying all this about the bank's particularly citigroup. our call as i see it. melissa: she was held up like an icon. charlie: citigroup needed to restructure. they would get rid of the dividend and she was right. she was right for having the guts to say in the banking industry. they used to call senior people, citigroup senior people like ge and nbc to stop me and i will when she did that guaranteed her boss over at oppenheimer got that call but what this did and this was bad because it hurt

average investors. melissa: it cause a lot of people to go away from it. when she made the call there were so many arguments, about why it didn't make sense that municipalities would pay this bill before they would pay other bills because it would hurt their ability to borrow down the line. i talked to jamie dimon about this and he said meredith is great and i respect to work but this is what -- charlie: that was why she got -- [talking over each other] melissa: a lot of -- [talking over each other] charlie: did he say on the air? he went public depending meredith whitney, he and a few others. a lot of offenders, what she said made conceptual sense. we had the worst recession -- [talking over each other] charlie: i will send it later on. conceptually she made sense because municipaliiies were a

lot less tax revenue, generally -- [talking over each other] charlie: debt service is part of the overall budget. melissa: there is an interview with a mid level executive, greg smith on 60 minutes this weekend. charlie: i -- melissa: dorr is anything in the book going to be shocking to was? charlie: are they going to talk about this book? melissa: anything in the book will be shocking to was? charlie: this is my reporting. i reported a couple weeks ago he was going to do this. i got screwed up with anderson cooper on 60 minutes, not cnn. if you look at the end there that are out there and not very competitive, that is definitely not -- [talking over each other]

he saw him driving himself -- greg smith pitched this to a slew of publishers. a lot of them dropped out. garrett -- grants and what the ultimate winner. he couldn't give them the essentially the dirt. what he gave them was in awe column which was -- the worst thing calling clients muppets, they dropped out and what scared them is he would have three months to write it. he doesn't have the eye for deal -- detail that michael lewis had. when he left he had lou windier who was feeding him stuff and this was legendary, creator of the mortgage market. greg smith didn't have that i for detail, didn't have sources at goldman. and he didn't have much was bringing to the table whether than an interesting column. that is bearing out in this

book. maybe he is hiding something. if you look at stuff that is leaked you leak the best stuff. lloyd blankfein with sheet. stuff like that. [talking over each other] charlie: not even in the shower but out of the shower. [talking over each other] melissa: another rough quarter for mcdonald's and more than a stronger dollar. we will speak to the analysts rachel hoffman from such guana. melissa: shopping on rodeo drive will shock you the best cost you a pretty penny. what about just a buck? the $0.99 only ceo coming out. and metal as we head to break. you see that trade is lower across the board significantly so. copper getting hammered down 4%. we will be right back.

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verizon. more 4g lte coverage than all other networks combined. melissa: earnings and economic data leaving a sour taste in the bulls's mouths. nicole petallides continues to join us from the stock exchange. nicole: a loss of 1% on the dow. the s&p down 1.2% and the s&p down 1.8%. a majority of dow components lower and stocks lower, the down volume easily outpacing up volume, two names on the dow

have the arrows. bank of america and home depot in general a electric and o cfo microsoft and caterpillar just to name a few, mcdonald's under pressure. earnings reports on the move, let's start with our winner, looking at shares jumping here on news they came out and rising demand for chips used in smart phones, better news for bandits. you see the stock up 5% and liz claman will be talking to the ceo, we will stay tuned for that at 3:00 and on the downside, chipotle mexican grill with levels we have not seen since 2011 and they are alking about the costs they're facing and the outlook a little tougher and the customers expending more cautiously and not taking such orders anymore. melissa: chipotle not the only

company having its earnings miss estimates and global same-store sales grew at their slowest pace in nine years. joining us to dig deeper is racial rothman at susquehanna financial. thanks for joining us. what do you think was mcdonald's's biggest problem? we had a guest yesterday saying when you talk about currency, it is terrible. >> europe was the bright spot in the quarter. the real over hang on the stock is they were pretty much in line with expectations but still soft. the company followed on with a comment in the release that said october same-store sales were negative. sales include 300 basis point at trading day adjustment so they're starting in the hole but it is not good to comment forward-looking comps trending-. melissa: what is their problem?

why do numbers look like that? >> they set on a conference call he couldn't recall a time when there were macro head winds and all the geographies and mcdonald's fighting since earlier in the year in march when they started talking about whatta tough macro environment and what the company is doing to offset driving transactions hand taking the couple of approaches to that to remodeled restaurants and make a more inviting some people will come inside. they're focusing on value messaging and value products and that will drive traffic and hurt your mix and the amount each customer spends in the restaurant so that is a head wind of same-store sales. melissa: is depressing to 19% and you mentioned the fundamentals but also rising commodity costs. how does mcdonald's offset that? >> you bring a great point.

and margins are under pressure, offsetting that for mcdonald's is the commentary they made on a conference call which they locked in their 2013 commodities earlier than usual and actually did it prior to the 2012 drought. and the biggest drop since the 1915s the you have a dynamic that will play out where competitors which did not freed by their commodities are forced to take even more price next year losing more traffic and driving hard line on price which mcdonald's will do because of the structurally lower-cost, continuing to take market share in the informal category. unfortunately for everybody else what is bad for mcdonald's is bad for mcdonald's but worse for all of their competitors. for 2013 --

melissa: is mcdonald's best in class or are they doing it better? >> their best in class. the 900 pound gorilla with scaling advertising and anybody else can do it and do it better and advertise them 4-1 and do it at a lower price. what is bad for mcdonald's is worse. >> talking to the ceo of $0.99 a lane next. was 25 years ago today that black monday happened. the greatest percentage loss for the dow ever. could it happen again? here's a look at how the dollar is fairing today. you can see it is higher across the board against major currencies. we will be right back.

>> 25 minutes past the hour your fox news minute. president obama and mitt romney back on the campaign trail after appearing at a charity dinner in new york city last night. the candidates took a break from what has been a bruising battle

for the white house to make fun of themselves and each other. it is not stopped for politicians since the end of world war 2. eight people have died and dozens of others are wounded after a huge, bomb exploded in central beirut. lebanese official says one of the victims is the senior lebanese intelligence official who led the investigation that implicated syria and hezbollah in the killing of former prime minister and doctors in england treating the 14-year-old pakistani girl shot by the taliban say she shows signs of infection that is making progress. the medical director at queen elisabeth hospital says the team is not out of the woods yet. those are your news headlines on the fox business network. lori: deep discount retailer $0.90 only stores is going -- to

buy on one of the most exclusive blocks in the world. what is in the search for a dress upgrade. let's ask the ceo of $0.99 only to join those exclusively from los angeles. looking for space on rodeo drive, we talk about the economy, the millionaire starting on market potential. >> a couple blocks from beverly hills for 20 years and every year it gets busy year-end busier and the fact is it is the highest sales volume store of 300 stores and we have a lot of customers from beverly hills clamoring -- who loves a great deal better than a rich person. and they still a rich and since the recession hit we have more demand in beverly hills so we were thinking where would be a perfect location where we could get locals and tourists so we

thought rodeo drive and great marketing for the company would be our flagship location. lori: does it send a message you are after by virtue of being on rodeo drive, 37 to $42 a square foot. $3 a square foot. it will cost so much to be there, do you have to change what you charged when you are the $0.99 store. does it send the right message about your store? >> we hope we don't have a special $99 session. we want to keep our pricing but we believe it will be our best volume store and part of the investment in rents you look at his investment in marketing or advertising to get the word out that rich people, upscale folks love to shop in our store. the reason the store next to beverly hills does so well as we do well with upscale clientele and this helps send a message

out. [talking over each other] is still under way? they noaa little about this process and how you're dealing >> we love to get a deal in $0.99 only stores. we were hoping we could avoid the middleman, the real-estate broker and the direct with the landlord to save some money. we at representative yesterday who had a shopping cart, looking for relocation and it is going to be challenging to find a location, we will get a smaller location and we are optimistic, and work hard to find a good deal. melissa: not only are you cheap but you are good at a pr stunt. you have a bird's eye view and how people are feeling and you have stores all over. what is going on out there? are things getting better?

people feeling more confident? what are customer's telling you? >> customers are telling us, this is anecdotal but our customers are telling us things are not getting easiee but with the price of gasoline being at all time highs, our stores, there's not a lot of public transportation. it makes a dent in people's wallet and, to try as for the first time. lori: what people looking for? [talking over each other] >> the worst tease i have ever seen. i know what he had. he had a pumpkin. >> in the $0.99 store. i do not believe that happened. it was his competitor somehow cutting him off. fascinating topic. you hit the nail on the head. thank you for coming on.

time for stocks every 15 minutes and let head to the floor of the stock exchange. nicole petallides standing by. historic day on wall street. nicole: a lot of traders are here today some of whom were here in 1987 when the dow dropped 22%. let's start here with the dow. the dow is down 167 points. that is a loss of 1%, majority of dow components are lower and a lot of this from earnings that were a little weaker than forecast and below analyst estimates that revenue came in shot and profit that was not enough so we a looking at names like microsoft, ge, caterpillar, mcdonald's under pressure on this day. the day we remember, black o co monday where the dow dropped 20.6%. if we were trying to compare that to today and the the perspective we would have to lose 3,000 points. imagine if that were to happen,

the chaos that would be an suing. we should you mcdonald's because over 25 years that has had the best stock growth rate, but that is what people remember and in some cases would like to forget. >> thanks so much. ups and tnt express received the statement of objections from the european connection. this is a normal step in the process and ups will respond to the european commission in a couple of weeks about that deal. setback for housing last month. is it just a blip or something more? melissa: the soaring price of natural gas. look at today's winners and losers in the s&p 500 as we head to break. you can see capital when is one of the winners of 5%. we will be right back. 0t[h7

bartlett: previous owned homes fell last >> existing homes fell. compared to september last year. sales were up 11%. prices up 11% too. inventory is down, 20% year-over-year. realtors say the numbers show the housing market rofrlry is real but not everybody is convinced. >> we are seeing a genuine break out of better conditions in the housing market. we did have a month to month set back but the broader trend is, housing market

recovery, momentum is buiiding. >> i just think the fundamentals, in terms of the again all of those things that drive confidence and capacity, employment, con consumer confidence, household net worth, those things are still wild cards. i don't see how those by themselves are going to be the engines of growth as it relates to the housing market. >> average price of a home sold last month? $184,000.% back to you. lori: peter, thank you. continuing on this theme with our next guest. much more on housing data with anthony sanders, professor of finance at george mason university and a great friend of our show. anthony in the research this morning you warn icebergs ahead but to the extent they will sink the titanic. what do you think for housing? >> that's correct. to be honest with you, we're having the worst economic recovery since the recession, since 1882, when chess ture arthur was president. so the fact that housing is doing as well as it has, is

miraculous. when you look at, it is a sad perspective. but again, the fact that you were entering into the winter months again, autumn leaves. we expect housing prices and housing sales to be cooling off as we head into the winter months so i'm not concerned about the seasonal blip. lori: right, but if you look at the seasonally adjusted rate of units units added, 4.75 million, anthony, what is your expectations, because historically we're still well off the highs? >> we're going to be off the highs for a long time. think back to chester arthur. we're not getting anywhere near to the 2002 to 2006 period. we'll be below that lore for a long time. lori: first-time home buyers they say are driving it. 31% in august, 34% in july. it is trading a little lower. what do you think in terms of the first time buyer and

adding that support to housing? >> the first-time buyers can go to the fha. freddie and fannie will not having to do with them. they're still credit scores ungodly high. so that is the good news. the bad news is for first-time home buyers, they're very uncomfortable about their employment prospects, even if they have a job, they don't know if they're going to keep it. unemployment is still a horrible problem, 17.4% u-6 unemployment. 40 weeks median duration. those are tough numbers to overcome. lori: fed is helpful. in your research point to massive purchase of treasurys and agency mortgage-backed securities. as far as the equity markets are concerned and even the gold market, we lost a lot of qe rally momentum. how much is the fed going to be able to help the housing market? >> i don't think a lot. i think the fed shot their last bullet. the flooding of liquidity is not really helping mortgage lending. mortgage lending is decreasing. and you can see that in the

numbers. i'm not going to mention m-2 money velocity except for people that had econ in college but that up didded to a all-time low since the 1970s. this is bad. lori: lack of supply pushing prices higher. are higher prices a good or bad thing at this point in the recovery? >> of course ideally everyone likes higher prices but to jump-start the market lower prices will always do it. bear in mind there are currently from the supply side, there are still two million homes that have gone through for closure are awaiting for sale. we still have a huge supply off. as soon as that hits the market that will help cure some of the supply shortages that were alluded to. lori: anthony sanders. thanks. >> thanks, lori. melissa: natural gas prices up big since april lows. how can a energy ceo plan for business when the price swings 88% in just six months? that has to be tough. we'll ask laredo petroleum's

randy fauch when he joins us next. lori: a big spike earlier this week, investors iling in to take advantage of yields. you see the 10-year yield dropping by six basis points to 1.77%. on the 30-year, down from a three handle, 2.95% is the yield on the long bond. we're back after this. gecko (clearing that) thank you, mr. speaker, uh, members of congress. in celebration of over 75 years of our government employees insurance compy,

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fox business brief. it's a sea of red down on wall street on the 25th anniversary of the infamous black market monday stock market crash. the dow is down 187 points. webmd continues its efforts to keep billionaire investor carl icahn at bay. the on line health info provider is extending the poison pill for two years. webmd says the move is meant to deter a hostile takeover. icahn is the largest shareholder. he says webmd is undervalued. residents of india can get their favorite cup of starbucks java. the coffee chain giant opening first flagship location in human by as part of a 50/50 joint venture with tata. that is the latest from the fox business network, giving you the power to prosper.

lori: traders are running for the exits this time. melissa: big-time. lori: dow down 184 points. let's head straight to nicole petallides on the floor of the new york stock exchange to find out what is going on. >> i'm looking at dow jones industrial average right now, melissa, and lori, where we're down 185 points on the dow. obviously a tough day as we're down 1.4%. obviously that is a decent loss and it brings us closer to a losing week on wall street, 13,328 is where we closed last week. so we're about 40 points off of that level. we're seeing all the dow components with the exception of bank of america, 29 of those 30 dow components are under pressure because of tough earnings, because of the big picture, the macroeconomic picture. we have existing home sales. there is look at dow for one week. mcdonald's, ge, caterpillar down more than 3% each. back to you. melissa: nicole, thanks so much.

natural gas hitting a fresh 2012 high up 88% from april lows but is that good news for ad because nor natural gas producers? let's ask the chairman and ceo of laredo petroleum. thanks for coming on the show. let me ask you what happened because anecdotally i talk to a lot of producers, folks involved in fracking one way or the other who saw a real decline in production when we saw the price drop in april, backing off. was that sort of across the board? did it help prices and is that what you saw? >> thanks for having me back but the issue with natural gas is couple things. one we have a lot of it. melissa: yeah. >> you could argue if it is 70 years or 100 years supply or whatever but what we saw early on there was so much demand destruction for couple years. melissa: yep. >> with a huge supply. now we're seeing because of the generation using natural gas and some other things, that demand is picking up some and the supply is still very robust. melissa: when we saw those prices fall so low back in

april, around two bucks, all of a sudden, i have riend involved in fracking all around the country in a lot of different hot spots. things got real quiet for a moment there. people were worried for this low price would stick around for a while. do you think that this is the new normal, somewhere between two and four? is that good for your business? >> the rigs, drilling for straight natural gas declined dramatically. we're still drilling a lot of natural gas as we drill for natural gas liquids and produce the gas along with the liquids and the crude oil. so there's a robust supply coming on. we think that it is good for the economy of the united states. melissa: sure. >> and we think it is also going to be good for natural gas producers over time, as, as the demand picks back up for natural gas. melissa: what does that mean for your business going forward? maybe if people can plan on the cheaper supply it is a good thing. you will see more electricity generators switching over to natural gas. even see more use of natural gas for transportation?

>> yes. the, you know laredo is about 60 plus percent crude oil, 25% of our production is natural gas liquids. so the price of natural gas itself does matter to us and the industry. i think it is good in general for us to burn natural gas in for generation. and i think cng for transportation is a very smart move for the country to move to. melissa: so what are you planning for this winter for the price of natural gas? what do you think the weather is going to be like? and what do you think the price will be like? >> the forecast have been all over the place for winter weather. >> sure. >> some think it is mild. some think it may be a little stronger. the facts are we have the 5-year average is up ply storage of natural gas. it is up above today the five-year average. so i think natural gas is long term rising but i think, we do have a lot of supply that we're curtail the upside on price. >> so what, two to four bucks, five bucks, give me a

rough? >> 4, 4.50, somewhere in that range would be our best guess today. melissa: randy, thank you so much for come on. we appreciate your time. >> thank you. lori: real life or just a tv show? the outrage in lebanon over a showtime hit series, "homeland". melissa: look at some of today's winners and losers as we head out to break. sandisk on top of the board up four and one-third of a percent. we'll be right back. [ mujahid ] there was a little bit of trepidatio t quite knowing what the next phase was going to be, you know, because you been, you know, this is what you had been doing. you know, working, working, working, working, working, working. and now you're talking out, well you know, i won't be, and i get the chance to spend more time with my wife and my kids. it'my world. that's my world. ♪

hate to do this to you, attention to the markets. dow down in excess of 200 points. poor earnings, economic data weighing on investors mind they close out the trading

week. the dow last friday, closing 13,328. so we're close to that level but there in terms of that yet. dow down 204 points with just over two hours to go in this trading session. melissa: rival biker hughes and schlumberger releasing third quarter earnings. sandra smith has the details in today's trade. >> some faring better when it comes to the energy sector and earnings. look at energy sector trading mostly in the red right now. losses everywhere from one to 2% for some of the big energy names but we did get out earnings today from baker hughes and what a disappointment, taking a 5% hit in today's session. by the way a stock down significantly so far this year. it has lost 18% over the last 12 months. analysts still have overweight weighting with $53 price target. they miss the estimates. earnings are down 60%.

they're attributing to slowdown in drilling here at home. natural gas prices way down, drilling way down. that hurt the company. one other stock, schlumberger. stark contrast. schlumberger beating on the top and bottom lines. stock up 9%. it has been very volatile. barclays saying schlumberger did a great job at differentiating themselves from the peers but they're not immune from the big selloff despite a beat on top and bottom lines. back to you guys. melissa:. sandra, thank you very much, "homeland" a favorite series. they offended lebanon. they are suing the tv show because it says lebanon is narrow and dirt and dangerous place. these scenes were filmed in israel but supposed to be taking place in the capital city of beirut. officials are spending heavily to rebuild beirut and market it as a tourist center. the recent episodes show

shooting on the streets and americans being attacked. that hurt beirut's reputation. melissa: a tourism center. does lebanon have a case? we learned of a car bomb exploding in beirut. at least eight people were injured. dozens of other, eight people were killed. dozens of others injured. phis is the first serious explosion the city has seen in two years. since 2005, there is uptick in bombing. one suicide blast killed a former prime minister and still unknown who is behind the blast and what the motive may have been. how many people go to lebanon on vacation? i'm not sure --. lori: but my question is, why get so up in arms? it is great to even have your city be portrayed on a show so widely shown. melissa: not like that. not like that. lori: i disagree it is dirty and dusty. melissa: make it look very scary and dangerous on the show. lori: they make it look foreign and interesting and kind of an exciting place to visit personally. it is just the lead characters have these

dangerous assignments as cia agents and running around in covert operations and wielding weapons. that is what make as market, right? melissa: coming up tonight on "money", cyberterrorism analyst morgan wright joins me to discuss the recent cyber attacks on american banks and he is going to demonstrate how it is done for us. we'll give you a little how-to on that. i'm kidding. we won't. that is 5:00 p.m. iron here on fox business. lori: we have the markets down. 200 point deficit. markets made huge strides. they have made. the year is not over yet. one says the gains might be in the final stretch. join tracy byrnes, ashley webster next here on fox business. [ male announcer ] this is steve. he loves risk. but whether he's climbing everest, scuba diving the great barrier reef with sharks, or jumping into the marke he goes with people he trusts,

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ashley: on a day when the market is selling off, good afternoon, everybody, i'm ashley webster. tracy: i'm tracy byrnes.

two hours to o the dow is accelerating. is optimism about third quarter earnings kind of fading fast? ashley: looks like it. president obama and gop candidate mitt romney talked about lowering america's corporate taxes but do either of the corporate plans go far enough to spur growth. tracy: now attack on the cyber war on banks you heard first on fox business. why the hsbc hit raising fears that attacks are becoming more global and sinister? ashley: first get down to the stock exchange. talk more about these stocks. the dow is off 202 points. nicole petallides, is it is a broad-based selloff, isn't it? >> on corner of broad we're seeing markets sell off across the board. dow jones industrial average down 200 points for the first time we're at lows of the day. nasdaq, tech heavy composite, down 2.2%. clearly heavy selling

accelerated here in the last few minutes of the dollar is stronger and earnings have not been too great i should say when we talk about profit and revenue and the outlook. i know tracy mentioned going forward the outlook as well. that is something been dwindling. names like mcdonald's for example, that is in the consumer group. that is one of the groups that has been under some pressure. talking about the fact that their same-store sales grew at the slowest pace in more than nine years. another name like general electric, revenue missed analyst estimates. stronger dollar hitting names like mcdonald's and ge on quarterly numbers. microsoft talked about weaker pc demand. we are seeing. i just checked the s&p 500, and at think point, 479 names out of 500 have down arrows. that should show you broad-based selling we're seeing here going into the close. back to you. ashley: one of those days, nicole. we'll be back in 15 minutes. tracy: rain outside is not helping at all. dreary, miserable friday. our next guest says there is

still some time left in this bullish run though. believe it or not we have a little optimism here in studio but you have to buy at the right time. it is crucial. we have the founder of conversion coaching joins us now. teeka, so good to see you. you're looking for the s&p to hit 1500 even in this little bit of miserableness, huh? >> i think there is still some more room to run. if this bull market was a football game, we would be in the back half of the fourth quarter. there is still something left to play out in the game, there is still some upside but getting real close. got another three or four months left to make money. you have to be careful. you can't buy at the top of the trading range. we're coming in right now. we had to. we're a little bit overbought. the play here you have to look at blue-chips. that will be the place where you can still make money but you've got to be patient. let them come in a little bit and i think you will still be well-rewarded for your patience. ashley: we knew these q3 earnings were going to be rough but they are now proving to be that case. at the beginning of season

we thought maybe not that bad, the bar was set to low. this is reality setting in. did the market factor that in? >> everybody has blinders on and they're not caring too much about earnings. they have to pay it in lip service. you can't go out in public earnings don't matter. this is just about the free money ben bernanke is dumping into the stock market. that is the truth. you have bernanke just printing money like crazy. the causing all of this money to flow into the market. again, i think what you have here is a shakeout. i think it is a buying opportunity. some of the names i like here on a pullback, wal-mart, see it at 72 bucks i think you can buy that i think it will probably go up into the 80s. bristol-myers squibb has almost a 4% dividend yield down here at 33 bucks. i love the stock. kimberly clark, another very safe stock at 84, 85 bucks. i like it a lot. it will go at least 10 points higher from here. still upside in this market. you have to be cautious. as we rally up to 1500 people will start getting

overexuberant. ashley: at the top you think of the s&p? >> that's what i think. people start taking profit. >> what happens then? do we go plummeting down? >> it will be a grind. a tortuous grind. say again for instance some good stuff happens in europe. maybe you get a blowoff move up to 1550. take this one step at a time. don't go on vacation and think you can leave your investments alone. watch them every day, i . ashley: you saw cash is not a bad option. what is that doing for you? >> if we get 1500 i will start mmving into cash. i will sell calls into my positions. start raising cash. remember going into cash is an investment decision. doesn't mean you have to stay in cash. ashley: sure. >> as we go into april of next career or march, that is generally a he really rough time in the market. you get a big selloff and come back into the blue-chips. for me the key takeaway, don't be afraid to sit in cash. and two, also, take advantage of these

pullbacks. there is still money to be made here. don't let those pullbacks scare you. a lot of individual investors buy at the top and sell at the bottom. tracy: we have a little bit after pullback here, the dow is down 190 points. before we go, we have to ask about google. what was your thoughts on the whole mess yesterday? >> that was just a nightmare. this is the real world. thanks happen, right. ashley: yeah. >> they handled best way they knew how to. google is stock that will overcome this problem. they have a issue with mobile ads being at a cheaper rate than regular ads but they will overcome it. google is down around the 220-day moving average you have to be a buyer. if you're a long-term investor, they own 75% of that market. no one will dislodge them anytime soon. tracy: teeka, youngest vice president as shearson lehman ever. that is cool. ashley: great information. we have breaking news, if you're a hockey fan you will not like this. the nhl canceled the regular season games through november the 1st. they can not get a

bargaining agreement going. that means that not only was the priest season wiped out we're wiped out until november fist. tracy: josh is wiped out. what sport are we talking about again? ashley: national hockey league. that is rough. there are a lot fans out there. hopefully you get stuff out there. cyberattack on banks is taking on a bigger more global target. a story on fox business. adam shapiro has been on it from the very beginning. adam, what have you got? >> what is troubling these attacks which had been originally centered on u.s. banks going global. hsbc the most recent target. we have a recent statement from hsbc. important to note so far these attacks according to the institutions haven't cost any of their customers. here is what hsbc said. denial of service attack didn't hurt any customer data but did prevent customers using hsbc online

services including internet banking. we're cooperating with the relevant authorities and will cooperate with other organizations that have been similarly affected by such criminal acts. we talk about this because i want to pull up a graphic we created here at fox business to show you, these attacks, although we were talking about it last week have been going on for five weeks. capital one, regions, suntrust, and capital one again this week and bb&t and hsbc it started with jpmorgan chase, bank of america and the new york stock exchange. the organization claiming responsible for these attacks. they have ties to islamic terrorist organizations. attacks they say will continue until youtube pulls the movie, "innocence of muslims", from the youtube website. we're seeing more financial institutions attacks. these denial of service are more powerful than deuntil of service attacks, using individual web servers to launch the attacks. ashley, back to you.

ashley: adam shapiro thanks so much. tracy: adam is all over that. coming up stocks are selling off but they are up a bit from session lows. we're down 195 on the dow. we're tracking the markets every move this hour. we have fox business exclusive, who is telling his clients to get the heck out of tech even before this week. ashley: new concerns about the health of google ceo larry page after the company's conference call still struggling with that voice. details ahead. first as we do every day at this time we look at oil. oil coming down a buck 60 a barrel. $95.50. we'll be right back. 4g lte is the fastest.

so, e service would yochoose, based on this chart ? don't rush into it, i'm not looking for the fastest answer. obviously verizon. okay, i have a different chart. going that way, does that make a difference ? look at rizon. it's so much more than the other os. so what if wjust changed the format altogether ? isn't that the exact same thing ? 's pretty clear. still sticking with verizon. verizon. more 4g lte coverage than all other networkscombine.

ashley: google's big miss may have caught many investors off-guard but one noted strategist has been in new york this week telling the heck out of the techget sector. tracy: robert gray sat down with interview who correctly called the market tops and bottoms of cycle. robert what is he saying right now. >> robert belkin, his clients include hedge funds institutions so sovereign wealth funds, institutions. he has been here a week. i sat down on wednesday with exclusive interview to discuss his pleek outlook not only for stocks, market

but economy globally. he is bearish on tech for a while. advises his hedge fund and institutionnal clients to sell or short tech stocks everything from apple to amazon.com. so many semiconductors. i put in semiconductors. household names there. look like they're taking his advice to heart right now. >> i am telling my hedge fund clients to short tech companies and names, it is funny because there is overlap between goldman's conviction buy list and hedge fund favorite longs i'm recommending to short. names like of course hewlett-packard and intel have fallen a lot. dell is down 40, 50% from their highs. apple still close to their highs. semiconductor companies like altera, altr, klac, software companies like oracle, big hedge fund favorite long position. i think it is going down. >> not just tech stock. he told me is so bearish

individuals should get out of the stocks all together. doesn't matter if who wins the election or avert the fiscal cliff. we're at the end of the business cycle. stocks are going down. called the peak after fed qe announcements. so far come into play. google's earnings are the latest sign the slowdown is underway. >> i think the big issue is the business cycle and what happens is earnings go down, in the last two sessions s&p 500 reported earnings fell more than 50%. over, and i think that can happen over the next four or five quarters. when earnings go down, stocks go down. simple as that. >> base case, 30% decline in the dow over 15 months during contraction. short consumer stock names like starbucks, another one on his list. you will use less if you go into defensive positions like utilities health care but he prefers inverse etfs not the leveraged kind which we know don't necessarily% work out but --. ashley: big names in there. >> or cash. he is really looking for big names. as he said what is interesting, the conviction

buy list at goldman and what hedge funds own the most of like apple are exactly the stocks he is saying short. what he is saying in people trying to get out they will run for the exits and you could see downturns like today if he indeed correct. tracy: in a way teeka was saying same thing. we're at the end of the fourth quarter, and eventually the thing will topple over. we'll see the slow painful drip next year. >> short term guys are saying there still may be more room to run to the upside. people come in and maybe buy the dip crowd is out there. hedge funds trailing market widely. institution and fund managers behind the bogey and may need to buy things higher his call --. tracy: get out. >> get out while you can. you see. he has been right before. tracy: was at solomon brothers on black monday. >> yes. he couldn't believe it. his boss finally came in, buy them when they got to a certain level. we'll see if they're buying them today. tracy: that is great stuff. as we do every 15 minutes we have got check on the

markets especially today, down 193 points on the dow. nicole on the floor. exchange. hey, nicole. >> tracy, ashley, seeing stocks down across the board. dow was down 190 points now. earlier it was down more than 200 points. the selling is broad based. it is every sector, retail, drug, bank stocks are selling off. the selloff is our biggest point drop since june, since we dropped on that day 250 points on june 21st when we were saying, what a gloomy u.s. forecast we had. there was a global slow slowdown. outputs in germany and china had fallen off. that was a day back in june where we sold off 250 points. i want to look at google. you guys were mentioning it just now. we saw it yesterday plummet. it was halted during the afternoon. when it reopened in the afternoon it dropped over 8%. here it is now. you can take a look how it is faring. it was above the $700 mark.

right now 8681 which is where it was when it immediately opened yesterday at 3:20. tracy: thanks, nicole. we'll definitely check back with you in 15 minutes. dow down 190 points. reforming the american tax code. diana further got roth is out with a new study which investments will encourage revenue for american companies. ashley: very interesting information. look how the good ol' u.s. dollar is moving against some of these currencies. against the euro, down against the dollar. dollar essentially up against all these currencies, except the japanese yen. not a bad day for the dollar i guess. not for the markets. we'll be right back

>> at 20 one minutes past the hour i'm julie banderas with your fox news minute. several were killed in a car bomb explosion in beirut today. according to the country's state-run news agency officials say the blast is one of the largest the city has seen in years. clashes in lebanon have been on the rise stemming from violence in neighboring syria. former italian president silvio silvio berlusconi appearing in court today to

deny accusations surrounding a sex scandal. the 76-year-old said he never had sex with a 17-year-old moroccan, and denied his bunga parties were sexual in any way. berlusconi declaration does not carry the weight of testimony in italian court. the u.s.'s tallest man got custom made sneakers to fit his massive size, 24 feet. would you believe it? reebok crafted three pairs for the to-year-old. they make, they took actually five months to make. the 7 foot 8 has had 16 foot surgeries to correct damage done by poorly fitting shoes. i don't know what to say about that. tracy: the bunga-bunga parties -- >> i have so many jokeses that inappropriate for television you have no idea. tracy: julie banderas, thanks for making us laugh.

ashley: so many jokes. both president obama and gop hopeful mitt romney agree that the u.s. corporate tax rate needs to come down but a major difference between the two is whether to tax profits companies earn overseas, territorial tax. the manhattan institute analyzed both plans and senior fellow. diana furchtgott-roth joins us with the results. diana, you looked at plans here, which one is better for this country? >> what we need is a tax plan that can compete with all our competitors. our top tax rate is 35% that is what our corporate tax rate is. the average tax rate of our competitors is 2%. plus we tax firms on income all over the world. our competitors tax income of corporations in their own country. so switzerland taxes its corporations in switzerland. we tax ours all over the world. what does it mean? it means if a multinational has to choose a place to

have headquarters, they're less likely to choose the united states. and we need to change that by bringing our corporate tax code in line with those of our competitors. you know, our neighbor to the north, canada, has a 15% tax rate. we need to be closer to a 15% tax rate. and romney has proposed to lower the tax rate to the 25%. and tax corporations only on their income in the united states. ashley: so that's, we're talking about the territorial tax system. before i ask you on that, listen in to what vice president joe biden had to say about the territorial tax during his debate last week. >> it is called a territorial tax which the experts have looked at, and they acknowledge it will create 800,000 new jobs, all of them overseas. all of them. ashley: is that a fair criticism of that tax system, diana? >> no.

ashley: why not? >> it really is not, that comes from professor kim clausing at reed university in oregon. what she didn't take into account, many think she didn't take into account, we have lower taxes here more corporations will locate here. if corporations do expand abroad that is linked with increased jobs here in the united states. look at apple for example. it employs people abroad. it employs people here in the united states. what we don't want these multinationals going abroad like aon insurance that was in chicago. it relocated to britain in search of lower tax rates. if our multinationals relocate abroad we don't get any tax from them at all. we need to be competing with the rest of the world. we needdamerica the best place to invest both from the tax and regulatory standpoint. ashley: so by doing so one of the major issues of course is lack of job creation. you believe that truly would lead to job creation?

>> exactly, because right now, corporations, multinationals, are holding they're holding billions of dollars, billions of dollars offshore. they don't want to bring it back because it will be taxed at a 35% rate. ashley: right. >> what we need to do is, first of all, say that we're not going to tax their income from abroad. that would let them bring it back here and reinvest it. that would be a massive stimulus. ashley: terrific. thank you so much for joining us diana furchtgott-roth with the hat tan institute. >> great to be with you. ashley: by the way that was joe biden at the convention. he did have the same comment during the vice-presidential debate at paul ryan. something he keeps saying again and again. interesting, corporate tax rate in canada. 35% here in the u.s.. tracy: why do business here? ashley: yeah. tracy: we want to bring everyone up-to-date is going on with these markets down 213 points. the 25th anniversaries of black friday.

we're near session lows. the dow is down almost 17 points. s&p 500 down. nasdaq down too. even apple down today. investors waiting announcement from them for next week. all started the day off, ge weak earnings. microsoft, mcdonald's and google from jed. -- yesterday. we knew it would be bad. >> we did. tracy: bar is so low, maybe they can jump over it? not so well. ashley: ibm was the canary in the coal mine. monday was black monday the anniversary. today is black friday. tracy: you're right. ashley: 25th anniversary of black friday comes as many lose confidence in the financial industry because of google, flash crash and more. gerri willis will be here with that story next. tracy: first a look at some of today's winners and losers, there are some on the sap 500 as we head out. robert half international up 5 1/2%. see, accountants get jobs.

we'll be right back

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to go the distance with you. this easy-to-understand guide will answer some of your questions, and help you find the aarp medicare supplement plan that's right for you. >> it is 30 past the hour, let's get a check on the markets. it's miserable outside. it is pretty miserable on the markets right now. let's go down to nicole petallides on the floor of the nyse. how is the selling as we hit final 90 minutes? you have teddy weisberg. he has seen it before many times. nicole: he has indeed. he has a lifetime of experience. we are looking at a market accelerated selling going into the close, ahead of the weekend. what does that tell you? >> reminds me of the friday before the crash in 87. we were down 100 points on that friday. i don't think we had ever been down 100 points before.

it kind of set us up for nervous weekend and then we had black monday. i'm not suggesting for a minute that's what we're seeing again today. down 200 is still disturbing. nicole: we have gotten a lot of earnings out and a lot of profit revenue misses outlook that have been somewhat bleak for some companies. what are your thoughts on that? >> well, you know, we have been chatting on and off about this, almost back to the first quarter when dupont gave negative guidance. and for some odd reason, the market has just chosen to ignore a lot of the guidance that we've been seeing from some very high-profile u.s. companies. and it's sort of coming home to roost, this quarter. now, we're not certainly through the earnings season yet, but we've had some pretty high-profile companies that historically have put up some pretty good numbers good times and bad that clearly are struggling a little bit here. so, you know, perhaps what we're seeing today is maybe the realization that the market is finally recognizing the fact that maybe third quarter earnings are not going to be quite as good as people either

were wishing they would be or in fact they will be. nicole: thank you, ted weisberg of seaport securities. thank you very much for your insight. ashley: all right nicole. thank you very much. ww will be back in 15 minutes. teddy putting it in perspective. huge reality check, essentially is what he's saying. tracy: all right. couple the black monday anniversary with google's earnings debacle yesterday, you've got to ask are investors losing confidence? here to dig into that is gerri willis or just plain scared? >> i think they are. i think we have been losing confidence for some time. a recent survey shows that less than 20% of investors have confidence in the markets, this is despite the fact that over the last 52 weeks we have had some pretty darn good performance. today not so much. but i want to think back to that day in 1987. i was working my first business news job ever. and i remember quite well being on the telephone with a trader who was crying, crying in my

ear, he was so disturbed about what was going on. keep in mind, it was a 23% fall. 508 points. if we went down 23% now, it would be like a 3,000 point drop. ashley: yeah. >> you would be just as worried, all would be sitting here crying. people are comparing that day to 1929. a lot of worries in the markets, concern, a month over it was over. ashley: then you have things like the flash crash, what caused that? how did that happen? the facebook ipo. the google mistake. >> technology is out of control. and 1987 was program trading. that was a lot of discussion at the time about what was wrong with the markets. this is something that's recurring, hmmm maybe we should do something about it or think what can we do to make sure that people aren't for example testing new technology that's untried and not going to work in the market. tracy: we have a lot of experts coming on here and coming on our shows and saying put your money in cash. and that of course feeds the

fear. >> just the the worst. i have people telling me i am mostly in bonds, parked in bonds right now. do you realize you are at the beginning of a bubble bursting? we know that's going to be trouble; right? ashley: and getting nothing back for it. >> and doing worst than inflation. tracy: anyone who lived through 87 is old enough to be close enough to retirement, if you have had money in the market in 87, and then you lost it again in the 90s with the tech bubble, you're thinking, it's got to be safe. something has to be safe and probably under my mattress is it. >> i just don't agree with that. tracy: but you can understand how people can think that way. >> i understand it but i'm doing everything i can here and my show to tell people you have to play to win. you have to invest. you have to invest in a lot of different pots, putting it in your mattress, putting it under your mattress, putting it in the backyard, forget about it. inflation is going to kill you in the next few years. ashley: such a broad-based

sell-off today, oil is down, gold is down, everyone is -- sell sell sell going into cash, that's that mentality right now. tracy: much like it's been said, at the end of the day, everyone is going to need toothpaste and diapers, j&j, kimberly clark. ashley: i don't know about the diapers. tracy: somebody is going to need diapers. don't miss the willis report tonight. she will be telling you to keep your money in the market, i'm sure. ashley: good. put your money in diapers, that's what she's saying. so many jokes with that too. >> we're not going to go there. [laughter] >> google ceo larry page's comments on the call are -- we will talk about that. ashley: take a look at the ten

year and the thirty year. 30 year at 2.93%. we will be right back.

>> i'm obert gray with your fox business brief. the market sell-off on wall street continues on this 25th anniversary of the infamous black monday stock market crash.

right now the dow not down that much, but off 215 points. that's a decline of 1 and 1/2 percent. americans purchased fewer previously owned homes in the month of september, slipping from a two-year high in august. the national association of realtors reports existing home sales dropped 1.7% to an annual rate of 4.75 million. and grocery store operator kroger will stop selling -- [inaudible] -- because of a potential food safety risk. the company says current processing method cannot reach pathogens that may reside in the seed. that is the latest from the fox business network giving you the power to prosper.

ashley: breaking news for you, oil closing for the day, take a

look, loss of more than 2% today. for the week oil losing $1.81, that by the way a decline of almost 2% of course with the slowdown in the economy and the earnings going down, the need for oil would theoretically go down and that's why the price has dropped. tracy: right. okay, well ashley's talking about the corporate tax fight earlier. well, another big presidential election fight, regular tax cuts for people like you and i, and will those tax cuts boost tax revenue? elizabeth mcdonald is here. >> do you know what i love about the fight? the people who say tax cuts don't raise revenues, they will say it will reduce the deficits because it won't bring in the revenues; right? but then they will say listen, you can't study the behavioral impacts of tax cuts because it's just too difficult. so it can't be proven, but they don't work anyway. it doesn't work -- ashley: because in the bottom line revenue is dropping. that's all they are seeing. >> claiming that it is dropping, but you know what?

watch this. take a look what happened when kennedy cut taxes. this was his plan. it came after he was assassinated. look at gdp growth, ticks off to 5 1/2%. and the unemployment rate dropped to its lowest level in three decades at 3.8 and continues to drop. by 1966 to 3.6%. again and again you will hear out of d.c. lawmakers too difficult to measure behavioral impact of tax cuts, we're not going to do it, but they don't work. look at this, the reagan tax cuts, look at here, reagan tax cuts started in 82 and 83, really took off in 86. look at the revenue coming in the door, again and again you will see with the clinton tax cuts, the capital gains tax cuts, that brought in 20% of the federal revenue by 2000. a lot of money came in the door then. more than double from 64 billion in what -- ashley: right. >> there was a dot com boom, i get it, but people do react --

tracy: i don't know how this is hard to measure. come to my house, you cut my taxes, i have extra money, my kid gets shoes. it's pretty simple. >> that's what kennedy's secretary would work, a demand cut, you put more money in consumers pockets. it's not the supply side cut, meaning that businesses will invest. i will tell you something, time and again the congress cbo has already undertated federal -- understated the federal tax revenues. >> thanks so much, good stuff. ashley: how does google ceo larry page sound? dennis kneale joining us. dennis: google ceo larry page got his voice back after four months of self-imposed silence due to a condition neither he nor the company will reveal. now, the medical mystery though deepened yesterday when analysts

heard him speak in a raspy breathy weary whisper about the earnings flop that whacked 20 billion dollars if google's market value yesterday. give a listen. >> as you can hear my voice, my voice is still hoarse. i will keep my remarks reasonably short. i'm sorry for the scramble earlier today. >> sounds almost like an automated voice app. it is a little chilling to hear a year after the death of steve jobs who held key details of his bout with cancer with investors. we still don't know how benign or serious larry page's problem is. a delicate balance between ceo's right to privacy and investors right to know, showed up big-time in apple case. jobs and apple withheld pertinent details even after his cancer returned and he had to take a leave, he said it was because of a quote hormonal imbalance which wasn't quite the

whole truth, was it? as for page and google they said he lost his voice and would be speechless for a month, and that turned into four months before page spoke this week. he sent an e-mail in june tellingggoogle workers quote there's nothing seriously wrong with me. google's executive chairman joked about it. and cofounder said that quote larry's inability to talk made him quote a more effective ceo. ashley? ashley: that was quite telling on that conference call yesterday. obviously he's still struggling with that ailment. >> with something. ashley: yeah, thank you very much. tracy: hopefully he gets better. the dow is down 218 points. we are near session lows. we have to get more on the market sell-off. nicole petallides on the floor of the new york stock exchange. nicole: tracy and ashley, as we continue to get company earnings and outlooks, we start to see that the economy is not doing as well. the outlook for some of these companies not doinggas well..3 revenue not coming in as strong as had been anticipated so we are seeing some earnings misses, and that certainly is one of the

main reasons we are seeling off here today. the dollar has been very strong, some of the companies.to hit here's a look at the s&p 500 and the dow jones industrials today, and you can see they've continued to sell off here. the dow is down 217 points. its biggest drop since the middle of june where we sold off 250 points.% so this certainly is a big drop today. and we don't see 200 point day losses too often here. we should also note the nasdaq composite, the tech heavy nasdaq composite and that is the worst of the bunch, we have selected to put this on its own, down 2.2%. yesterday it was really kicked off with google but today we're seeing so many names like amazon, hewlett-packard, apple, advanced micro which is down 16%, microsoft, netflix, all of those names with down arrows as well. back to you. ashley: tough day for the techs and many others. nicole thank you. coming up, are dividend stocks overbought? a leading strategist will weigh in next. tracy: first let's take a look at some of today's winners and

there are some, and losers on the nasdaq. sandisk up top, up 4.6%. we will be right back. [ male announcer ] at scottrade, u won't just find us online, you'll also find us in person, with dedicated support teams at over 500 branches nationwide. so when you call or visit, you can ask for a name you know. because personal service starts with a real person. [ rodger ] at scottrade, seven dollar tres are just the start. our support teams are nearby, ready to help. it's no wonder so many investors arsaying... [ all ] i'm with scottrade.

ashley: earnings today from two dow components mcdonald's and general electric. certainly playing a big role in today's sell off. the dow off 217 points. sandra smith here with details in today's trade. sandra: when does mcdonald's not do well? here you have a really

disappointing quarter. so mcdonald's getting hit down really hard today. it's definitely one of the biggest laggards in the dow pulling the market down. down several percent today. mcdonald's by the way also down about 10% so far this year. look, they reported profits that missed estimates, earnings per share were 143 versus 147 expected by analysts. -- 1.43 versus 1.47 expected by analysts. remember mcdonald's is large global company. got that stronger dollar, it does affect their sales. they also by the way were warning about conditions ahead. they did say that conditions ahead are uncertain. so that's leading to a big sell-off in the shares today. by the way, citigroup, oppenheimer, ubs, all coming out with notes today after the earnings saying that they are leery about the outlook for mcdonald's. here's the catch, of all the negativity you are hearing from analysts after that report today, average analysts weighting overweight, price target 99 bucks. they are saying the stock is still going to go up but still

nervous. sonic reported earlier this week and they looked very good. tracy: which is odd for sonic because in the past they have done miserably. sandra: profits were up about 18% for the quarter. so they are somehow managing. then of course this's general electric as well -- there's general electric as well. sales missed estimates. pointing to the currency exchange rate problem for their sales internationally being down. they put out a very cautious tone by the way. they're saying this this is going to be a tough environment going forward. tracy: you wonder if this is becoming a kitchen sink quarter where everyone is just saying you know what? everybody else is doing bad. let's put it all in there. ashley: get it out of the way. sandra: good excuse though. ashley: we will find out. sandra thank you. tracy: investors have been chasing dividend stocks and really driving the prices up. are they overbought? we have been hearing that for a while. can you still find ones that are worth your money? joining us now is senior equity strategist with zack's investment research. happy friday, i'm glad you are

here. let's talk about this because everybody comes on and says buy stocks that have a nice dividend. meanwhile, we do have looming tax questions coming up as well. >> you know, it is an easy statement to make, right, when things are tough go buy a dividend stock. the problem is like you said is sort of sifting through all the junk and finding the quality companies. so i sort of take like a three part plan. number one, is the company growing? is their earnings momentum if everybody is buying dividend stocks their price is going up regardless. if their earnings are not delivering, these companies may be in for a rude awakening. two things, one use our zack's rank, it's free go to zacks.com, number two, take a look at p-e multiple, if it is really high 18 to 20, higher than that, there might be a little red flag. third, take a look at something called the peg ratio. if that's over 1 1/2, maybe the stock is a little bit ahead of itself and you might want to take a breather. ttacy: that kind of tells you

your growth. also have to look at the yield on these stocks, right? your dividend per share, you know, it could change by the day. you have a few that you like and some you think are getting pricey. let's get right to this one. it has a 6.7% dividend yield. you like this one. how come? >> it's been making a comeback. basically in the shipping business. banking on sort of the global recovery, albeit slowly; right. the bottom line is tal is growing. not a lot of expectation for them. big dividend yield as you said. unlike other stocks that are more popular like johnson & johnson which is a stock i don't like here, tal still has room i think to grow. gives you a nice dividend yield in the meantime. tracy: let's go to j&j. you think it is a little pricey. a lot of people in j&j. i just said heck everyone is going to need toothpaste. do we sell it here? >> that's the common sense thing; right? for the past five years everybody is like oh you've got

to get toothpaste. look at it, trading at 15 times earnings, the peg ratio is like to grow to meet expectations.eds the bottom line j&j is a little oversaturated here. for the dividend yield, i don't think it is worth it. i think there's better places o put your money. tracy: you can only sell too much toothpaste. next one is a master limited partnership, tax benefits of limited partnership but liquidity of a public company. >> right. here's another thing to watch out for, great dividend yields. they are a hot ticket. very popular space to be. you look at something like, you have to realize a lot of volatility. a lot of them are tied to price of oil. if it is dropping 10, 15 percent, guess what? these stocks are probably dropping 10, 15 percent too or more. there goes your 5% dividend yield if the stock drops 15%. be careful with the mlps. tracy: we are at dow and s&p 500 session lows right now. where is this market going? is it a blip or are we on to

something here? >> it is a little bit of blip, options expirations today. a lot of folks taking profits. earnings not been really stellar. remember it is friday. we had that google hiccup and microsoft, intel, a lot of those companies hiccupping. i think we recover, i would be a small buyer of good quality companies. tracy: thank you. happy friday. loved having you here. >> happy friday, tracy. ashley: a lot of info in that segment. tracy: good stuff. ashley: more on today's sell-off plus a stock that's rising, sandisk the company seeing multiple upgrades after stronger than expected earnings. coming up next, liz claman talks exclusively to the flash memory giant ceo, find out why he expects solid revenue growth that's coming up for next year. countdown to the closing bell is next. 4g lte is the fastest.

so, which supeast 4g lte serve would yochoose, based on this chart ? n't rush into it, i'm not looking for the fastest answer. obviously verizon. okay, i have a different chart. going that way, does that make a difference ? look at verizon. it's so much more an the other ones. so what if we just changed the format altogether ? isn't that the exact same thi ? it's pretty clear. still sticking with verizon. verizon. moreg lte coverage than all other networks combed.

he loves risk. but whether he's climbing everest, scuba diving the great barrier reef with sharks, or jumping into the mke he goes with people he trusts, which is why he trades with a company that doesn't nickel and dime him with hidden fees. so he can worry about other things, like what the market is doing nd being ready, no matter what happens, which isn't rocket science. it's just cmon sense, from td ameritrade.

liz: good afternoon everybody. i'm liz claman. it is the last hour of trading. this is countdown to the closing bell. we're beginning right now and yes it is a market sell off, day two of losses as all of the major indices are falling right now, but in the last hour, the velocity of the drop is accelerating. now at the low of the session the dow was down about 236 points. a minute ago down 234. right now down 207. watching it very closely. check the nasdaq. the nasdaq erasing its gains for the entire week after yesterday. not a great day at all. but the dow and the s&p are fighting to end the week higher. will that happen? you have to stay with us this entire hour because it looks like it will be close. it is the blue chip blues. of course mcdonald's and ge are really dragging down the dow jones industrials. both of them disappointing investors on different levels with their earnings reports. and microsoft's numbers after the bell yesterday annoyed investors so much so that today microsoft again pulling back