lori: is now the time to follow the smart money? placing their bets now, should you follow? ashley: protesters storming, 525 people dead, 2000 injured. president obama says the violence needs to stop. let's go to the floor of the new york stock exchange and our very own nicole petallides. nicole: there is a lot going on here. the dow jones industrials down 195 points, which is a loss of one and a quarter percent. the mentality here on wall street is an interesting one. i almost said washington.

these people turn to washington and try to see the federal reserve whether or not they would begin to taper the bond buying. we will get to some movers in a moment, couple of things, the 10-year, and gold just spiked moments ago up $26. keep an eye on gold. i wanted to take a look at walmart and cisco with two down components. cisco systems carbon 5% of their global workforce. back to you. ashley: thank you very much. lori: a reflection of the cpi, shows a little inflation in the system. let's talk about the data they lose. the latest reading on the fed installment is the and atlantic region slow down more than expected in august. the news isn't much better in the new york area.

edging up 0.2% in line with estimates. a bit of good news. initial jobless claims fell more than expected to be lowest level in six years, so the best levels since the end of the recession. does that mean a september tapering is more likely? wells fargo senior economist. we have a stock selloff and a bond selling off. the market must be bracing for tapering, correct? >> they pretty much baked it in. nothing that would tell the fed no, we will not do it just now. lori: let's break down the economic data piece by piece. 320,000, what does that say to you? fewer layoffs, overall unemployment rate closer to 7%? give me your take. >> might take in all is that clearly we are seeing less bad

news. a whole lot better if we would see more good news. less bad news in the jobless claims. we are not seeing as many layoffs. might have to do with the timing of automobile shutdowns. we will see a pickup in jobless claims in the next three weeks, but they are still low. most draft to implement rate have come about because fewer people lost their jobs. we had not seen a drop in the unemployment rate from people who have reentered the workforce being able to find jobs. that is what is missing right now. lori: it just makes you question if we see the exiting of federal stimulus in the tapering of bond purchases. you have an overall growth pace of 2%, we have had so many years of the monetary policy, what does that say about the effectiveness of the fed policy

and what will happen when it is ultimately removed? >> at some point you have to take the training wheels off. they're going to fall, stumble. sometimes the skin needs a blessing. i am not worried about the market having rough days adjusting to this. next line i measure taken by the fed. even after they stopped at insecurities to the portfolio, monetary policy remains very easy how much easier than it typically does. easterday moves the fed makes from ordinary monetary policy moves. lori: we have grown almost addicted to this stimulus paired would you favor ripping off the band-aid? since the talk back in may of doing just that cause all kinds of ruffling in the stock and bond market. >> they going to keep applying

neosporin for at least the next six to nine months where they will gradually reduce the securities purchases. that is a good thing. we have to get off our dependency of the fed coming in at such artificially low levels. the market has to correct the underlining fundamentals which are improving, but still not where you would like them to be. lori: thank you, sir, we will see you very soon. ashley: following the smart money, new insight into warren buffett investing strategy and a filing with the as a sec. and new stake in this network. the oracle of omaha sharply reducing the shares of kraft foods. 192,666 shares roughly.

kraft foods shares as of june 30 by the way 88% from the reported holdings as of march 31. cut by 92%, making no changes in the holdings of wells fargo, american express and coca-cola. many followed berkshire hathaway and warren buffett move. lori: down once again below 200 points. we have our eyes closely on the market off 209 points today. if the market is bracing area di.it looks like we're in this climate now. gold going, going, gone. not as appealing as it was last quarter. there are slashing their holdings in the asset so what prompted this move? elizabeth macdonald has the bottom line. wasn't he recommending holding

them back on and gold last month? >> confidence in gold is being rattled. they use it as a hedge against the dollar against currency debasement. it is names like david einhorn, cutting their gold holdings. we see them dumping out of spider gold trust. what we're seeing is essentially hitting levels we have not seen since february of 2009 off by 32%, so what wells capital trust advisors are saying is this is the armageddon premium coming off of gold, probably into september. the biggest annual loss since 1997 but it is spiking higher today. what we're seeing in the difference in paper gold trade versus demand for actual gold is up.

the council report seeing demand still going like gangbusters in china, the middle east and turkey up double digits. seasonal demand coming in going into the fall for gold. two different storylines going on with gold. ashley: gold-mining stocks have done very well, but overall people are little bearish on gold up $25. on a inflation play. >> to have been buying gold for 10 straight quarters. watch out for the pendants putting a floor under gold. hsbc saying 1500 or so last spring. were they off big time. cnbc reporting on their network. we have tried to be very cautious about telling anybody what the floor in gold is, at least i have been, you cannot put a floor on gold right now. even the big hedge fund guys are moving in and out of it.

ashley: thank you. turning to oil, this rising for the fifth straight day. fox news contributor in the trading pits of the cme. no doubt the crisis in egypt providing some support for crude, right? >> even when we're talking about the increase of the tapering pushing gold down a little bit, it did not keep it down there. it is not just egypt they have to worry about, they have to worry about a lot of tropical storm activity that may or may not impact production. what we do know is at this time it is impacting some of the platforms in the gulf. lot of platforms being evacuated because of this low-pressure system that is right now in the mexican area going into the gulf of mexico into the bay overland. that is also impaired in gold. another tropical storm that

could end up toward the gulf at least around the gulf next week. back to you. ashley: thank you so much. lori: breaking news, the latest on the crash that killed two people near birmingham alabama. officials on the ground have recovered the black boxes on the wreckage, so they will be analyzed as early as today according to the ntsb. ashley: triple digit losses on the dow, charles payne on the pullback coming up next. lori: confidence rising to the highest level in about eight years. ashley: we knew they were expensive, but the real cost of raising a child. you will be amazed, don't go anywhere. you make a great team.

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time to bring our market man charles payne in. okay, we have got cisco and walmart, bellwethers cutting their forecasts, that is not good, but what else is at play? charles: we came in with an ominous cloud that said all right, last week the first we had in like six weeks. versus general feeling a regular pullback is long overdue. at session lows. not surprised we have to pull back a little bit, but that will not be any leadership today. you had in the conspiracy theories, and whole bunch of things, that we do know next month it will be pretty interesting. what happens with the lawmakers, the debt ceiling battle, the battle to remove obamacare, continuing resolution and the main point, we were promised in the first half of the year that

the second half would be better. we gave them a free pass on a few things. you miss and revenues, you beat by a penny. using the second half will be better, and now the same kind of confidence. the very end of my morning report i wrote did not panic. i will admit over the last week we have been selling a lot of positions. ashley: trading tends to make these big moves exaggerated. >charles: there is no leadershi. it is a problem. what becomes leadership into the next month other than the market pulling back to where people want to buy it. ashley: could we see some people jumping back in or not? charles: i don't think so.

i think for the last hour of trading is the most exciting o our, to be amazing if we rallied in this because i don't see what the leadership is coming from. having said that, don't panic either. lori: lets go down to the new york stock exchange with nicole petallides on the floor because not everything is down on wall street today. nicole: that is absolutely right. to the point of what we have been seeing. breaking through the 50 day moving average and someday technically you may start to see some programs go in and one example would be looking at a note this morning as we broke the moving average in june it turned into a negative 350 points they. that's to say that will happen today but sometimes that does happen. here are a couple of winners for you. looking at kohls and dillards, two names we know so well. up basically 7% today. when you talk about kohls, they

are doing better. same deal, looking pretty good. these retailers with walmart, macy's a bit lower today. back to you. lori: many thanks. ashley: confidence hitting the highest level in almost eight years. national association of homebuilders, wells fargo housing market index rose to 59 august as a reading of 55 was expected, so anything over 50 is considered good. this is the fourth rise in a row coming next takes into account current and prospective sales conditions. trading in the green today. getting a 52-week high. the spike in the 10-year yield borrowing and cost going higher.

are the consumers confident and can they afford getting into the housing market? lori: we shall see. some said it is baked in, but still enough positions. it is interesting to see the stocks and bonds down, yields pushing up as well. the safety of bonds, that is not with the money is headed. chaos in egypt is intensify more than 500 people are dead now and clashes as the muslim brotherhood vows not to back down. ashley: kt mcfarland is here next. president obama warns the traditional cooperation with egypt cannot continue as usual. 32 talking about gold popping as usual. it is much weaker against all of the major trading partners. the euro pushing at 1.331 versus the greenback. we are back after a short break. right now, 7 years of music is being streamed.

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lori: protests and violence between police and protesters bring egypt and its economy to a standstill, even worse than ever. as the death toll continues to rise. standing by with the latest. >> boy, do six weeks make a huge

difference. remember when the coup happened in july the market rallied, optimism of the economy. today the general motors world dodge and shell limiting the shortlist, the exchanges are closed and banks are close at well until sunday because of the violence that is now rocking egypt. there was either the calm after the storm or the calm before the storm's people took note to bury the 500 people who died, but the rhetoric has not cool down at all. the muslim brotherhood must return to their mosque and get off the streets at the same time the muslim brotherhood said they are not leaving with our blood, our soul, we defend islam's latest chant setting of a very violent confrontation over the next couple of days. the thing to watch in egypt will be tomorrow, friday, noon after prayers to see if he will return to the streets and we have the

running gun battles we have seen over the past 24-48 hours were of the army had left leadership to really get a stranglehold on the situation there especially in cairo tr trying to keep the z canal open. ashley: president obama condemning the violence in egypt in a statement earlier today. president obama: united states strongly condemns the steps that have been taken by egypt's interim government and security forces. we deplore violence against civilians. we support universal rights essential to human dignity. including the right to peaceful protest. ashley: is more what is at stake, we're joined by fox news contributor kt mcfarland. great to have you. we hear from president obama gi his goal to give a statement on this. what is our administration view

toward egypt? what can the white house do? >> accu sort of switching. two years ago we should have used our seat at the table. it is a open up, include other groups in our government. we didn't, so then there is an overthrow. and the muslim brotherhood takes over. now here we are, we are now back in a military like government not clear what influence we are using. lori: there is no economy, no jobs, people are absolutely starving and this is the crux of the crisis going on. >> you are absolutely right and it is a vicious circle. companies are pulling out, there is no tourism money, no foreign investment. without political stability there is no economic stability, no economic growth so the people

are back in the streets saying we are hungry, we're angry. his sort of goes around and around. egypt is a country where 30% of the people don't have anything to eat unless the government hands them bread. ashley: u.s. provides a lot of help especially for the military, polic we threatened td back aid if the generals continue to shoot their own citizens? >> what we want is stability. we have a seat at the table but the saudis, kuwait, they have a bigger seat because they wrote a check for $12 billion to feed the egyptian people. the problem 20 years ago they were the worlds breadbasket and going back to biblical times. they chose not to grow weed and instead grew cotton. they were going to imported and sell the cotton. what happens to the price? the price has gone down, price of wheat has gone up.

lori: to describe the situation in egypt tragically as a vicious cycle, how do you see it happening? >> the muslim brotherhood are on their heels now. military government to cognitive whisacalculated risk. they wanted a crackdown. if the crackdown provides that stability fully cycle can can start economic stability, people can come back, et cetera. that is what they took and that is probably worth it. more and more violence comedically watching the be watching the very early stages of a war that could go on for a decade. we could have in egypt what we see in syria. ashley: the best scenario is for them to get back to the polled have democratically elected, but what is just to the person who wins follows the same path, we're going to be back where we

started. >> we could see revolution and counterrevolution and every time the cycle goes down and down. what is interesting over talks about his on tuesday the interim government reappointed the governors, 19 to 25 are now generals. lori: you have civil war in syria, the turmoil in egypt situation. middle east peace talks are going on in jerusalem now. do you think we could see some positive movement on that front from the palestinians? i had to go there, why not. >> it is like the roof is falling in, what does john kerry decide? let's build a swimming pool. lori: thank you so much. turning back to the market,

major selloff on the street, the dow down 223 points. that puts the dow on track for the steepest decline in about two months. ashley: new consumer concerns the world's largest retailer cut the profit on revenue outlook. the analyst take on that coming up next. the boys used double miles from their capital one venture card

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oh, you guys! and with double miles you can actuay use, you never miss the fun. beard growing contest and go! ♪ win! what's in your wallet? lori: we are following the markets every move with a dope stock selloff underway. the dow is off 216 points. economic data, initial the fed's case that tapering might be more than likely by the end of the year,

monetary stimulus. let's go back to nicole petallides on floor of the new york stock exchange with more. nicole. >> i love looking at those monochromatic board. these are reminiscent of old days on wall street. they give you entire glimpse of the markets quickly here. for example, the dow jones industrials that are down 214 points here. it is worth noting the down volume versus up volume. we see 274 million shares to the downside, versus 87 which are higher. the 10-year bond, 2.76%. that is worth noting. gold which has been jumping, 27 bucks to the up side at 1361 a troy ounce. it is worth noting we should look at the vix, the fear index which has jumped even over the last hour or so, about 10% to the upside. so we'll keep an eye on the vix as well. but what is interesting, about the dow jones industrials. we're still down 200 points. we broke through, to the downside, 15,100.

we're back above the levels at the moment. we did see 15,099. back to you. ashley: nicole, thank you very much. wal-mart and kohl's out with second-quarter earnings this morning. painting a picture not particularly looking rosy for retailers. jo ling kent, in midtown manhattan. >> ashley, that's right. it is back to school season. everyone should be shopping and summer sales are well upon us but not reflecting in earnings for kohl's and wal-mart. kohl's second quarter fell 3.5% as they reported higher expenses. they lowered their eps outlook for the year. profit for the quarter was 231 million dollars, compared with 240 million a year ago. switching over now to wal-mart, they missed their estimates as well. revenue rose 2.4% to 116.2 million, but that was still a miss. store sales fell .3% while the street was expecting a

1% gain. and the number of customers visits was also down. looking ahead, we'll be watching nordstrom's earnings coming in this afternoon. they're going to report probably we're expecting, eps of 88 cents per share. revenue of 3.29 billion dollars. but you know, we're be watching for any comment on nordstrom shopper behavior. trying out these new mobile check outs throughout the stores. seeing how customers respond to that. but, you know, lori, ashley, people right now are looking at this saying it is a weak economy. bad numbers. if you take a deeper look at reports. you can see a lot of companies that don't promerrillly center online retailers like amazon, this might be part of a longer problem. back to you. ashley: interesting point. thanks so much, jo ling kent in midtown manhattan. let's dig deeper into the report from wal-mart. joining us ian gordan, analyst from s&p capitalism

q this is interesting. sales down. is it a struggle for the low income shopper right now? >> yes, i think it definitely is. they cited the number one issue facing their core customer. this is wal-mart's internal surveys, as the job picture. and so with the job growth having slowed and real wages, you know, really in, zero territory, i think particularly those low end consumers, every penny counts. they're having a little bit of a tough time. ashley: that is interesting because as a result we're seeing wal-mart really campaign hard on low prices and quality of its produce. is that the right approach, do you think? we know they have low prices. is that enough? >> yeah, i think it's the right strategy and what makes wal-mart somewhat of a defensive name in this type of environment. so, we're excited about the opportunity with produce. they really just got those going last, this past quarter. so we think that's going to help drive traffic in the future. ashley: it ising, the

retailer we also understand focusing where it never has before on beer and liquor sales, hoping to double the alcohol sales by 2016. is that a smart move? >> look, i think wherever they can find the growth, that's, that's a positive. they commented that their adult beverages were up in the high single undid its this past quarter and carbonated soft drinks were actually down. so they're just, trying to go with the trends. ashley: at the beginning of the year we really wonnered how much of higher payroll tax would take out consumers wallet and whether that would be translated. the initial reaction wasn't that great but is that starting to kick in now as we see in wal-mart's latest report? >> i think it always has been a problem for the core wal-mart customer for lower incomes to begin with where there is really much wish shun. at higher end consumers can absorb extra 2%. when you're deciding whether to have chicken or steak for dinner, that's the

difference. ashley: that's a good point. on the international front, obviously exchange rates can hurt them which they say it did this time. they're under investigation, aren't they in mexico and possibly reading in brazil, china, india, based on bribing local officials to got the stores set up earlier. how much of a problem is that for wal-mart? >> i think there is a little bit of a distraction issue for management. as far as the costs, they have been creeping up. we're looking at 300 million dollar per year run rate for the compliance and investigation costs. and they have been heading a little higher than we expected. but, you know in the grand scheme of the size of wal-mart we're really not talking about a huge number in terms of the eps hit. ashley: very interesting. so where do you go -- what is you're outlook or the rest of the year with regard to megastores like wal-mart? >> we upgraded our recommendation this morning on wal-mart from a hold to a buy. we think with management having, you know, reset the bar lower, an expectations for the rest of the year,

given its underperformance, given stock's underperformance year-to-date, we think now is a good time to start looking ahead. everybody knows the consumer is a little bit weak. we see signs of optimism later in the year and into 2014. some of those expense pressures, particularly on the bribery investigation as well as e-commerce should start to taper off. ashley: very good. thank you so much, ian gordon, s&p capitalism q analyst. we appreciate your input. >> you're welcome. lori: market down for the day but up for the year and coulds of raising your family. according to the u.s. department of as culture costs 2 -- $241,000 for middle income couple to raise a child up to 18 years. that is up 3% from 20072011. it didn't -- 2011. it doesn't include cost of college. wages are flat last couple

years of. median annual household income has fallen $4,000 since 2000. even worse, the most expensive place to raise your kids, is in the northeast. while rural areas have a slightly less expensive price tag. ashley: we're kicking in bucks aren't we. lori: how long will you be working father of four? ashley: 112 is my age target. lori: i wonder how the audience will feel about a 80-year-old anchor woman? ashley: common. they will love you. lori: on serious note. ashley: serious note, a dour mood on wall street but you might not tell from looking at floor of new york stock exchange. aloha. traders celebrating national relaxation day as tommy bahama gets set to ring the closing bell. there you go. they're marking the occasion with flowerry shirts. lori: you should wear hawaiian shirts. that would get us an audience. dozens of states begging to be the home of the drone.

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from td ameritrade. we replaced people with a machine.r, what? customers didn't like it. so why do banks do it? hello? hello?! if your bank doesn't let you talk to a real person 24/7, you need an ally. hello? ally bank. your money needs an ally. q. >> i'm liz macdonald with the fox business brief. stocks under heavy pressure with the major averages experiencing the steepest decline since june 20th. disappointing news from

companies like cisco and wal-mart weighing heavily on the blue-chips. checking stocks, they're off about 21oints. jcpenney higher after regulatory filing finding george soros adding another two million shares to already large stake in retailer. he reported nearly 20 million shares near the end. second quarter. his jcpenney hold something fourth largest in his portfolio. the national transportation safety board says black boxes have been recovered from the wreckage of the u ps plane that crashed near birmingham, alabama, yesterday. the recorders will be sent to washington ds for analysis. the two pilots died in the crash. that's the latest from fox business, giving you the power to prosper

ashley: thousands of states across the count are lining up for the opportunity to be new test sites for domestic

drones, hoping for a boost to the local economies. interesting. peter barnes in washington, d.c. with more. peter? >> well, hey, ashley, that's right. two dozen states are competing to the be the testing skies for these new civilian drones. they are expected to be one of the hottest high-tech industries in the years ahead here. states with plenty of wide open spaces like utah, nevada, north dakota, they have all been here this week for the annual drone trade association show. they're there with their booze trying to get these, get interest in their states ginned up and they're spending millions to win faa flight testing contracts that are supposed to be awarded for, for these testing ground by the end of this year. now, in march, the association of unmanned vehicle systems international, that is the trade association, estimated the economic impact of the civilian drone industry will

be 82 billion dollars, from 2015 to 2025 generating 482 million dollars in new tax revenues for states and creating more than 100,000 new jobs, mainly high wage, high-tech jobs. >> we're a state of 700,000 people. you could see potentially thousands of additional jobs initially and spin-off jobs from that as well. the expansion is, yet to be seen but the potential there is real. >> now these civilian drones have many applications, including monitoring a culture, monitoring wildfires, and improving law inforcement and of course, improving television news coverage. ashley and tracy. ashley: that may be -- >> back to you. ashley: peter barnes, thank you very much. lori: take out annoying neighbors. you don't know.

let's get update on the markets with teddy wisering on the floor of the new york stock exchange. teddy, with every issue on the dow jones industrial average down a total of 207 points right now, if you're long on the stock market are you panicking today? >> i don't think you panic but certainly you're not having a very good day because at the moment we're taking, we're taking all the prisoners and, and, it's a little ugly. but i don't think it comes as a big surprise. the market's been kind of sending signals that it has been looking tired now for the last two or three weeks. as we got towards the end of second-quarter earnings. the averages have been struggling. we've had decent days. basically we've been flat-lining with tendency to go down and, you know, today, today they got to them pretty good. lori: i thought our colleague charles payne made an excellent point in the first half of the year, investors gave companies a buy as companies promised us better growth and better earnings the second half of the year and it looks like that will not come to pass. as you look at this market

today, add in the fed taper talk, how do you see it unfolding from here? >> you know, listen, we've come a long way in a relatively short period of time. whether you look at the last six months or go back to the trading lows of march 2009, the fact is, the markets across the board have, have risen dramaticly. a rising tide has floated a lot of ships. some should be floated. perhaps some should not. basically a lot of them floated along with the rising tide. so, in a general sense, stocks are pretty much priced to perfection. which, leaves us, very little room for any disappointment, no matter where it comes from. now it could be the tapering issue. clearly it is not factored in my opinion. it could be egypt. geopolitical or could simply be that second-quarter earnings, where the bar was dramatically lowered, you know, and so the percentages tell us that they came in and beat, what 68% of the companies beat. lori: okay. >> but the fact is we have a little air under the market

at the moment. so i guess we'll give a little back. i don't think it is at end of the world. lori: appreciate your opinion. ted weisberg. ashley: not the end. world, exactly right. cisco is a big drag on the dow. tech guy ant coming up short as it lays off 2% of its workforce. lori: this market in need after superhero to save this day. look at alternative investing. one particular investment that can make you real pape. comic books. ashley: cool. ♪ . right now, 7 years of music is being streamed.

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lori: saw that. it is an ugly day for the stock market. we'll introduce you to an alternative investing idea that might boost your

portfolio. comic books. top met trop police collectibles joins us with, you say this is a million dollars worth of comics books in your possession right now? describe what you have and why is it valuable. >> i loved comic books since i was a little, little kid and i've been buying and selling comic books since i'm 16 years old. i merged companies with my partner in 1999. we own metropolis collectibles. we have a auction line. comic connect. we're premier online. metropolis is largest dealer of vintage comic book. >> what makes these so special. >> here is comic book coming up in the next auction. you heard of action comics number one found in the wall of house. ashley: right. >> we sold that comic book for $175,000. that was only in 1.5 condition. this comic book is 5.0 condition.

lori: out of 10? >> yes. this is coming up for auction, coming up for sale in the next auction ending week of september 22nd to the 27th. this comic book estimated to go for half a million dollars -- dollars. lori: you must have stories of people randomly find comic books in the attic that save them from financial distress? >> absolutely. we had a situation a few years bark where a couple took a second mortgage out on their home, started a business and basically, what they did was, they their business didn't do very well. so what happened, they're being foreclosed upon. ashley: yep. >> they will lose their home. go into the basement. the house had been in their family's ownership for generations. they go in the basement to grab boxes to start packing stuff up and what do they found? they found an action comic number one. a few years ago we sold their copy also 5.0 condition for $436,000. and it was literally headlines read, superman saves the day. lori: literally.

ashley: how do i know i have the real article? how do i know the person appraising it for me, thinking oh my bod, tell them its no good, buy it for 20 bucks and sell for a million? >> one of the big things happened, about 14 years ago my partner steven pitched the idea of third party grading which is what these plastic holders are. where a third party, in this case, cgc. they're the premier company in the business, will have their experts grade the comic book. do a restoration race check, make sure it is real deal and give it numeric grade. people like yourselves who don't know anything about comic books and come into the market and sell them it has become commoditized. same way you go on line to buy a stock and sell a stock you can buy. lori: what about new comic books? will they appraise as these have in value. >> there is definitely a possibility for new comic books to appreciate. i like to put my money in something that has legs in it. something proven last 50 or

60 years, like spider-man, batman. this is comic book, flash. i brought this with me, they green lit the flash movie. flash will explode in popularity and demand. dc comics, just did the mann of steel. 75th anniversary of superman. the flash, extremely old character will hit its mark in the next few years. people can get on early and invest in this comic book. ashley: good investment. lori: good luck to you. >> thanks very much. lori: wonderful comic. ashley: comic connect. underpressure, the dow, nasdaq and s&p shedding more than 1%. blackrock's russ koesterich shares his big money strategy next. tracy byrnes will join me for the next hour of fox business. do not go away. when we made our commitment to the gulf, bp had two big goals:

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webster. tracy: i'm tracy byrnes. the dow tumbling down 216 points. two dow components sparks new fears of corporate earnings. ashley: economic news boosting the fear that fed tapering will start five weeks from now. russ koesterich is here to tell us how to play these markets. tracy: warren buffett is losing his taste for big name food stocks. we'll tell you what he is buying and selling ahead. ashley: a lot of people pay attention to that first, top of the hour. time for stocks. it has been a tough day. let's go down to nicole petallides on floor of nyse. nicole? >> tracy, ashley, we've seen a market under pressure all day. one. headlines pertaining to concerns when the fed may taper, that could be sooner rather than later. that is something that really weighs on markets ultimately. you can see the knee-jerk reaction. dow jones industrials are down 211 points. they're off the lows of the day. at one point we broke down

through 15,100. have a couple of dow components worth watching. all 30 dow components are lower whether financials energy or tech but we are seeing certainly some of the other names such as wal-mart and cisco coming under some pressure today as both names have actually done some reporting their numbers. so wal-mart talks obviously customer traffic has been pulled back. some higher payroll taxes hit some of the shoppers there. and that is not good news ultimately. they had to cut their numbers. cisco systems, another big name that we follow so much in technology, but, cisco systems cutting 5% of the global workforce, ultimately sometimes will give a pop to the stock but because they are struggling in this latest quarter we do see the stock pulling back for today and you get the knee-jerk reaction. in some of the two-day charts you see today's selling is a dramatic one. we haven't seen something like this since june. back to you. ashley: thank you, nicole.

stay tuned to fox business. liz claman will interview cisco john chambers on "countdown to the closing bell". don't miss that. >> our next guest says today's stock market and bond selloff is a case of good news as well as bad news. joining us russ koesterich, chief investment strategist for blackrock. russ, everyone is saying to me, the market is priced into tapering, and not getting upset at talk of taper. we're selling off on good news, because why? the fed is going to taper. >> clearly there were a couple holdouts who did not believe the fed would go in september and i think a lot of ways the initial jobless claims number this morning put as damper on that. given guidance from a number of fed officials, hard to argue they will not taper since december. it is good to point out, the market was done. there was nervousness since egypt and international

events are playing a part. tracy: let's talk international. we had a guest yesterday who is in your camp. he is saying maybe we should look overseas for investment opportunities? >> i agree. it is not a matter of either or. the u.s. is big part of market. you will have large amount of investments in the united states but it is not the only market out there. investors are very overweight the u.s. fundamentals look better than a lot of the rest of the world, much of that is already reflected in the price. in other words, other markets, in europe, emerging markets look much cheaper and as a long-term value player starting to look interesting. tracy: your point china and europe basically make up one-third of the global gdp is actually a good one and a lot of people need to be reminded of that. if both china and europe, europe coming out of its biggest recession ever, right, china is turning itself around, if all things point to go with those parts of the global world that helps here at home, doesn't it? >> it will help and certain

parts of the market more than others. is far this year a lot of domestically focused company, retailers, consumer discretionary companies they have done the best and companies more focused on international sales like technology, have really lagged the market. if we start to get to a place where the rest of the world is less of a drag and actually begins it help, then those are the companies in technology particularly the large megacaps that are probably the best position to take advantage of that. tracy: how do i invest in overseas? you know, u.k. service sector jumped. we saw improvement in german manufacturing. strong chinese industrial production came out. do i invest in countries specific or are you company specific? >> well, i think it really depends on your little of insight. obviously if there are certain things you want to play, companies or sectors that take advantage of that. i think for many investors start simply. reality most investors are very underweight international stocks. getting broad international exposure, some, someone with non-u.s. exposure that is a

good starting.. tracy: finally one of your notes you wrote recently, reminds us all, september is the worst month of the year. do you think it will be again? >> this is definitely, we're expecting volatility coming into september. we don't pay a lot of attention to the calendar. september is one exception. there is very significant negative bias to the month. other things to keep in mind, we have headline risk. we have got the fed and learned it is not totally discounted into the price. we have upcoming u.s. budget battle. finally we have election in germany where there is headline risk. i think we'll see volatility into the fall. probably a buying opportunity but something investors want to be aware of. tracy: any parent out there keeps track of the calendar because september means back to school. russ koesterich, of blackrock, always love talking to you. thank you, sir. >> thanks, tracy. ashley: going, gold gone. billionaire investors george soros and john paulson slashing their holdings in the precious metal. it is up big-time today but what about the big picture?

liz mack has the bottom line. >> there are so many conflicting stories how you play gold. give you the backdrop. john paulson and george soros out of spdr gold trust. it is lowest since 2009. it is down 32%. daniel lobe at third point dumping his holdings in the spdr gold trust. soros is dumping out of bold miners but einhorn too. david einhorn selling his barrick gold. paulson is uping shares in freeport-mcmoran and raising it 70%. when you track what is going on in gold it is interesting. get this in december of '08. $752 an ounce. boy those are the days. it doubled as the fed ramped up its balance theet by two trillion between 08 and june 2011. so that is what is going on with the paper trades in gold, right?

we want to look at too, there's another story. there's a bigger story too if you want to think about what is going on with the world gold council report. we're talking about worldwide demand in gold. wow!. china's demand in gold up 54%. india tracking 51%. mideast, 33. turkey, double digits. there is still demand for physical gold, right? ashley: yeah. >> what we're talking about with the hedge fund guys, these are paper trades again. these are trades in and out of gold miners and etfs. so central banks too, must be noted 10th straight quarter biling gold this past quarter. there are different storylines with gold. do not listen to media pundits who try to put a floor in gold. warning, hhbc tried that last april. said 1542 was floor for gold. guess what? look what it traded to now? watch out for people warning you what the floor is for gold. ashley: as you noted in the previous hour, liz, central banks have been hoarding

gold at pretty hectic pace. >> yes, that is exactly right. it is such a tricky trade right now. do you sell into it or buy into the selloff or sell into the buying. tracy: do they anticipate it will be new standard of trade some day? >> yes. tracy: they do? >> one word answer, yes. so what was going on --. tracy: that's scary. >> what john paulson was doing, dumping out reportedly. we've been tracking their sec filings. he was selling because he felt reportedly that the currency debase, dollar debased. dollar has been slipping and sliding and has been strengthening at certain points this year. these guys ran to the exits like everybody else last quarter and dumped gold. we don't know if gold will go up or down. watch out and look at bigger picture. the story behind gold. besides what hedge fund guys are doing. tracy: you said one word, that is the bigger story, lizzie mack. ashley: appreciate it. gold up big-time today on the cpi going up. so, difficult trade, isn't it.

tracy: very, very. the markets are pulling the dow back towards 15,000. we'll have a live update from the new york stock exchange next. ashley: and warren buffett boosting his stake in a major u.s. automaker. details what he is buying and selling straight ahead. but first, time to check on how oil is trading, up today, concerns of geopolitical events in egypt perhaps. up to 107.18 a barrel. we'll be right back ♪

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bounce is great because the freshness lasts for weeks in the drawer. why can't everything stay fresh that long? [ male announcer ] how do you get your bounce? [ man ] lasting freshness. tracy: seeing red on wall street with today's selloff. time to bring our money making man, charles payne in. all right, dow is down 237. no one will panic. is this taper talk? >> taper talks plays a role in it. after the move we've had, whether you want to talk about this year, last four, 4 1/2 years, whatever you want to do this has been a extraordinary move. this is one of those things, why to your point there is no panic associated. ashley: this is a tired market. >> this is real tired market. tracy: someone said yesterday, it was heavy. >> heavy. it is grappling right now for leadership.

we've had earnings out that didn't help. wal-mart, cisco, rather. so that kind of stuff, and then so what you start to do, okay, it is heavy. it is tired. it looks leadership. come a long way in a short period of time. where do we go to the downside? i thought we would look at important numbers. we'll bring up three key numbers. first un, 15,319. exponential moving basis that is 50-day moving average. we're not closing above that. that is sort of critical. you don't have to hold it on same day but certainly that's a number that will play a big role. today he is session, tomorrow. we start to pull down a there. not a lot of room to the second number, 200-day moving average. 14,520. that is move people tart to get worried. it is easy to be calm but we know selling begats selling. people that have ice water in their veins gets icy as it mounts up.

everyone always said is healthy, indeed it is except the average person, it loses their mind but we would be talking 14,093. those are the three numbers right now. i'm, i can't wait for this last hour of trading. ashley: it will be interesting. yeah. tracy: i hope that if we do get this 10%, people finally take it as the buying opportunity that they have been waiting and waiting and missed all this time, you know what i mean? get back in. >> to me, guys, this is a perfect time for it. we're coming out of earnings season. go back and look at earnings and companies that blew it away and amazing guidance, stock was up 20%. let those pull back from the market and you have -- based on knowledge, right. some people, i'm kind of salivating although process can be a little tedious especially holding a lot of people's hands at the same time. ashley: if charles is salivating, watch out. >> you have on that red dress -- is that red or orange?

blood orange. ashley: coming up after quarter past. time to check these markets. nicole petallides down at the nyse. nicole, take it away. >> well, you know, just reading about the different levels we're hitting. you just did a great segment there, how we have broken down below the 50-day moving average. that is obviously a key technical level. sometimes you see selling upon selling when you break key technical levels. today, right now, we are at the lows of the session. right here right now, 241 points to the downside. 1.6% loss, for both the s&p 500 and the dow jones industrials. we haven't seen this type of selling since june 20th. and i wanted to also take a look here, at jcpenney, a key stock that we followed so closely. today is a name that we're looking, george soros, announcing that they have added 2 million shares to the bunch. and now making him the second largest shareholder

behind ackman. so worth watching jcpenney which is still a laggard year-to-date but doing well, up 4.5%. back to you. ashley: hang in there, nicole, thank you very much. tracy: stocks selling off partly on good economic news. we were talking about good news and bad news of course raising those taper expectations. we're tracking this market's every move next. ashley: plus hundreds of people killed in egypt's violence. the rest of the world condemning the military crackdown. we'll have the very latest from egypt next. first, look how the u.s. dollar is moving in this market. as you can see, generally lower. only mexican peso losing ground to the dollar. euro up to 1.33. british pound up to 1.56. we'll be right back. right now, 7 years of music is being streamed.

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ashley: all right. let's get another check of these markets. as you can seep the dow is off it 28 points. charles -- 228 points. charles payne said, well below the 50-day moving average. we'll keep an eye on that. let's look at other stats as we track these markets. 10-year yield, we're keeping an eye up 2.73%. that is up a couple basis points. borrowing costs are up. 30-year, up 2 basis points

at 3.77%. tracy: overseas new chaos in egypt as the death toll climbs above 500. president obama condemning action of the egyptian military. with more we've got to bring in fox news correspondent leland vittert. hey, leland. >> hi, tracy. not only is egypt in chaos but its economy is in chaos. remember six weeks ago with the coup, economy went up. there was optimism. shell, is limiting activity. markets are shut down and banks are closed as the country is under a state much emergency. today was calm after the storm or the calm before the next wave of violence as people gathered to bury more than 500 people who died both on the army's side and muslim brother hood side in yesterday's violence. also today, major cleanup operations underway in cairo as they tried to clear out those muslim brotherhood protest camps had been around since the army coup. the brotherhood also fought

back, burning at least one government building. big protests in alexandria, showing their resolve they have going forward in terms of this. the army is not backing down. the muslim brother hood says they're not backing down. they're chanting with our blood and souls we'll defend islam. the question is how many are willing to give their life in the streets rather than leave the streets as the army is demanding they do. appears the government there will try to really clamp down and get a handle on things tomorrow. that is noon prayers. which are a little more than 12 hours away here in the middle east, on a friday afternoon. we'll see then, how things shake out up in egypt in terms whether they will bring stability back to that country. tracy. tracy: honestly, constantly going on. leland vittert. you be safe out there. ashley: all right, a slew of economic data out today but even with the positive data on jobless claims and consumers prices my next guest says the economy needs to get stronger or the fed may delay that tapering until december.

joining me today is jerry webman, oppenheimer fund chief economist. some people are convinced the fed will start scaling back its bond purchasing in september, but you say hang on. what makes you say that? >> well, look it is training wheels on the bike. i made the mistake of my youngest kid taking his training wheels off and 22 years old. i hope he is not listening and he never learned to ride a bike. the fed pay as small price i think to delay watching numbers, they will watch what the august employment number looks like. there is a lot of information to come back. we'll see what the market is actually doing. everybody knows there is some distortion somewhere because of what the fed is doing but it is not showing up in inflation. doesn't seem to produce any asset bubbles. i think they can afford to be patient. that is not a forecast what they will do. i'm not one of ears they whisper in. ashley: right. >> don't start assuming that september is going to be the time when it --. ashley: we did see unemployment claims hitting lowest levels since this all began, the great recession back in 2007.

but you're saying it is not so much layoffs is the problem, it is job creation where we're still really falling back? >> it has really been slow and we're not able to sustain even a 200,000 a month pace of new hiring. the job openings data we saw earlier this week was a little bit favorable. we'll see if that can kind of continue. there is not a lot of momentum building. i think fed would probably rather see better momentum building before they do things, clearly just rumor of it will speak financial markets and they're not out to save the financial markets but there is great feedback between what financial markets do and what real economy does, they're connected. certainly interest rates are connected. ashley: sure. >> they probably would, i think, they would, i would hope they would try to avoid further spooking the markets. ashley: of course another issue for the fed some of the members has been the low consumer prices and concern about deflation. >> correct. ashley: but we haven't seen that. latest cpi, shows a raise in consumer prices. that is another sign that the market takes it is

getting closer to the 2% target the fed wants to be at so we're seeing markets sell off because they think the taper is coming sooner. >> that is what market seems to be saying today. as charles said a few minutes ago. we were overdue. technicals in the market were not exactly favorable. there was awful lot of buying that had been done and not a lot of buyers left. so it didn't take much to set the market off. you're right. dual mandate of the fed, more employment, stable inflation. we're going right direction. ashley: how can we, you know there is lot what i would say mixed data. sometimes you get economic data on manufacturing is positive, something on housing maybe not quite so positive. it is a daily mixture of crossed signals? >> i think most of us as individuals investing have be very careful how much we focus on day by day data. one of the things, you talked about this on this show before. one of the things you know about really remarkable daily it always gets revised back some kind of average. ashley: yes.

>> we have it be really careful about doing that i would urge urge investors continue to look for companies delivering good economic value. that have a market, that they can address in a profitable way and they can buy those stocks at a reasonable price. that is just investing 101. but rather than, focusing on everyone of these numbers you know, they're important but, let's keep to the basics. ashley: very good. we're already out of time. jerry, thank you. >> my pleasure. ashley: thank you. tracy: there is a major selloff on wall street right now as we enter the last 90 minutes of trading although it seems the calmed off. ashley: it settled down. tracy: live report from the new york stock exchange is next. ashley: plus the "oracle of omaha" rejiggering his portfolio. we'll tell you which stocks warren buffett is buying and selling next. first as we head to the break look at some of today's winners and losers on the s&p. homebuilders having a good day. d.r. horton up 5%. what about retailers, kohl's and penney'ses.

jcpenney moving higher we'll be right back.

tracy: ninety minutes til the close, earlier it was all red. now we have two lone greenies, or three. caterpillar, alcoa, fighting to get in the green. nicole petallides. >> reporter: one of those fighting days for the bulls because today we are seeing the wears taking the ball. -- bears taking the ball. we are off the lows of the session, however, you do see still a lot of red on the screen, and the vixx, the fear index, has been to the upside

throughout the day. a heart of the dow components, not all, are still in the red. all with down arrows. that being said, we have some names that are on the move and some names hitting some highs, and it's certainly worth noting and taking a look at two of these. let's look at add jewish lent, certainly a great performer there. it's doing very well, up about 15.5% this year. agilent, that's one of the reasons why they got some good news there. but the earnings is really the main driver of agilent, conocophillips at the best levels since 2008 and hitting some highs there as well at 16.5% year to date a real winner, and lots of positive analyst comments. tracy: thank you, nicole. ashley: two big name retailers out with quarterly earnings this

morning coming in on the low side along with weakened forecasts. jo lin kent has the latest on the consumers' frame of mind. >> reporter: hey, ashley, i'm standing outside of a gap store, and they are running serious, deep discounts. a lot of stores are missing their estimates. let's look ahead to nordstrom's, they're expected to reporta pe of 82 cents, but do they take any sort of cue from kohls or walmart, it's going to be disappointed. kohls' profits fell and missed estimate, and with mart missed estimates as well. store sales were down three-tenths of a percent in the last quarter. look at a lot of the other retailers today trading on the stock market. be industry associations are not expecting this fall to be a very good back to school season, sales are definitely lagging from last year already, so we can expect for consumers that they'll get better deals.

the retailers are going to be working a lot harder for their attention certainly both online and in person. if you haven't done shopping yet, there's still time. back to you. ashley: sales lower margins, that's the problem. thank you very much. tracy: she was talking about how nordstrom's is using the apple style credit card? ashley: yeah, yeah. tracy: it's awesome. i hope it works in their favor. berkshire hathaway made some changes to its holdings. gerri willis joins us with this. what's this guy thinking? >> i don't know, but you can get an idea by watching what's bought and sold each quarter, and that's what's happening today. everybody likes to watch what warren's buying to see if those stocks are going to go up. he now owns 40 million share stake in gm, that company just had earnings last week, last month for the quarter, and they beat expectations. americans buying more cars. and then he told pretty heavily kraft and mondalas, split last

year. his take now reduced 88% for kraft. kraft took some of the brands like oscar meyer miracle whip and jell-o and chips ahoy having trouble with that. so here's a number i saw which i think may be the most meaningful of the report which is that warren buffett didn't do so great this wafter, his portfolio up only 0.37%, the the markets went up 4.9, so not a good comparison for him. so the value of his stock picks, i don't know. it's an open question. tonight in our show we're going to be focused on education, we have a guest who's going to talk about the manner this which a lot of schools choose the reading material for your kids. you're going to be shocked to learn howdies associated teachers are from making these decisions. it's going to be a fascinating interview. critical ideas about -- ashley: interesting.

>> all supported by your federal government. tracy: and they ban books bike "catcher in the rye." that's one of my favorites. ashley: it's a classic. >> the best. but many schools that have banned it. tracy: all right, don't miss "the willis report," 6 p.m. eastern right here on fox business. ashley: and we've got some breaking news for you, oil closing up 48 cents at $107.33 a barrel. everything that's going on in egypt supporting crude, today is the fifth straight day oil has closed higher. all right, still to come, stocks selling off for the second day in the row, and there may be more selling ahead. we've got a look at an alternative investment that's been offering a 9% return for the last three years. tracy: as we do every day at this time of day, take a look at your 10 and 30-year treasuries, ash was talking about them earlier, 2.74% on your ten-year and your 30-year moving slightly up as well, 3.78%.

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confidence, meantime, among u.s. home builders close to an eight-year high. the national association of home builder sentiment index adjusts to a level of 59 this month from 56 in july. a reading of 50 indicates more builders view conditions as good versus poor. the cost of financing a new home purchase held steady, the average rate on the 30-year loan remains at 4.4 percent, that is a full percentage point higher than may. rates neared record lows, but rates remain hoe by historical standards -- low by historical standards. the fox business channel, giving you the power to prosper.

. ashley: breaking news for you. "the wall street journal" reporting the energy department has been hacked again. the doe e-mailed employees yesterday that hackers gained personal information such as names and social security numbers of 14,000 current and former agency employees as the

result of a hack that occurred in late july. this is the second attack this year that involved a breach of employee data, a similar attack happened back in february. tracy: all right, wow. here's a question for you, if your neighbor wanted to put on an addition on their house or go on vacation, would you lend them the money? probably not. but if you can get a 9% return on that money, i bet you'd think twice. a marketplace borrows -- matches borrowers and lenders, and the average investor has made 9% over the past three years. this is really interesting to me because i get why i'd come to you as a borrower. you're going to give me money. i could get a loan up to about $35,000, kind of no strings attached, it's almost like a good faith loan, i pay you back. as a lender, though, why would i give you my money?

>> well, prosper as a lender on prosper, you can earn a return of approximately 9% on a diversified portfolio of unsecured consumer loans. and i think that, i think that rate in this given, in this high -- low interest rate environment is the reason why you'd want to build a portfolio of unsecured loans. tracy: i mean, i guess there's a trust factor here, right? like how do i know? i give you, let's say i give you $35,000, i want to television it. how do i know i'm going to get this 9% back? do i get monthly statements as if i gave $35,000 to a mutual fund? >> so as a lender on our platform, the first thing you do is you can analyze all the loans, all the boar eauers who are available, we have a listing of all the people who want to give money all the time.

and we look at each one of our borrowers, and we rate each borrower, and the lender gets to analyze all of the attributes on the borrowers. so as a lender you know the type of person that you're lending money to finish. tracy: so i can choose who i want my money to go to? >> yes, you can. you can choose loan by loan, and you can choose how much of that money, of that loan you want to take down. so if somebody wants 10,000 or 20,000 or $35,000, you can, you can make a fractional loan to that person, $25 is our minimum. you can lend them 50 or $100 and, therefore, over time you can build a diversified portfolio of loans which will minimize any losses that you might experience in your portfolio. tracy: right. and i wanted you to explain that to people. this is basically do it yourself. i can kind of create my own little fund of loans, so to

speak. you found this company in 2006, the platform opened in -- sorry, the platform opened in 2006. how much money have you loaned out at this point? >> so since inception we have matched borrowers and lenders on $590 million of loans. currently, we're lending about $30 million a month, and that number's growing. tracy: i think, i think it's actually a pretty cool concept. now, for the borrower especially, it's kind of a no questions asked thing, right? you don't care if i take a loan and to on a cruise around the world. >> well, when you say no questions asked, you can borrow money on the site, and we do ask you what you are going to use the money for. most of the people come on the site, borrow the money for debt consolidation. they tell us that they want to pay off high interest rate credit card debt. so you can, so you can come on, and you can borrow the money,

but what we do to protect the lenders is we do an extensive risk analysis of each borrower, and we rate each borrower. tracy: what are the interest rates that you would charge me if i were to borrow? >> so interest rates vary depending upon your rating and your fico scores. so we deal with the very high end of the high quality end of the borrower market. so if -- a minimum fico score for any borrower must be 640, and our average is 710. so you need to be, have a good credit rating to come on, and we actually decline 85% of all the borrowers who try and borrow money on the site. tracy: we're running out of time. give me a quick ballpark on your interest rates, is it 8%? is it 25%? >> it's about 6% up to 35% depending on the rating. tracy: and my final question, how do you make money on all of

this? >> sew with charge -- so we charge the borrower an origination fee, and we also charge the lender a service fee on each payment that's made. tracy: you're certainly making money available for people who need it, although a 35% interest rate, buyer beware, i guess. thank you so much. the web site is prosper. go check it out. ashley: very interesting. it's a quarter til, time for stocks. as we do every 15 minutes, let's head back to the new york stock exchange on an interesting day. teddy weisberg joining us. we've been saying every today that this market is pretty -- every day that this market is pretty tired. i think today it's taking a sit-down, wouldn't you agree? >> well, yes. listen, it's never fun when they go down, and we're all spoiled because we've been riding that positive wave for so many months now, and nobody likes to give anything back. but clearly, this is a giveback day. there's obviously reasons for it, and it's never fun, and down 200 is, you know, sort of gets

your attention. down 30 or 40 with the dow at 15,000 doesn't really have that much traction, but down 200, i think folks are paying attention. ashley: but we're down, essentially, 1.25%, is there further to o, and could you argue kind of healthy given how far this market has come? >> you know, healthy is just a rationalization for somebody who's long and hasn't sold anything. [laughter] but, but the fact is that, unfortunately, you know, they don't, they don't give us a crystal ball, as you guys well know. ashley: yeah. >> but my guess is because they have been looking tired the last two or three weeks, i think we're just going to be in a period where a lot of uncertainty whether it's geopolitical, whether it's domestic, you know, whether it's the fed, there's a lot of reasons to take money off the table. and i think the buyers have -- it's more a case of the buyers have just simply walked away.

ashley: teddy weisberg, as always, thank you so much for joining us. tracy: he's right. he's always right. on deck, stocks slightly off their lows as we head toward that final hour of trading which is potentially going to be hairy. we've got you covered. you can't go anywhere. ashley: plus, two california brothers representing out old school video games to homes and offices, and they can't keep up with the demand. we should have one of those here in the studio. the story next, but first, take a look at some of today's winners and losers. we'll be right back with done can key congress -- donkey kong, you name it, we've got it. tracy: progresser. [laughter] with the spark cash card from capital one... boris earns unlimited rewards for his small business. can i get the smith contract, ease? thank you. that's three new paper shredders. [ boris ] put 'em on my spark card. [ garth ] boris' small business earns 2% cash back on every pchase every day.

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tracy: let's get a quick market check for you, the dow's been oscillating, down 210 points, your nasdaq down about 57, also that's your biggest loser of the day, down 1.5 percent, your s&p and dow only down 1.3% right now, s&p's down 23 points. we're kind of in this holding pattern, right? ashley: for the final hour. it's going to be interesting. okay, here's a little distraction for you, if you're feeling nostalgic for a vintage arcade game, look no further than all you can arcade started by two brothers in the bay area, you can have those old school game cabinets delivered right to your home or business. joining us now to talk about it is the co-founder and ceo, seth peterson. seth, you're a man after my own heart. this is a great story. explain to me how this works. how much does can it cost and what the service provides. >> well, we set up a, basically, a rental area in the bay area,

and it's $75 per month. you can pick any game, we don't care if you pick a congress key congress -- donkey kong, we want you to be able to get it, and each month you're entitled to swap the game out. the next month you can have centipede -- ashley: ah, centipede. >> yeah. we don't have any, like, any commitment fees, so you can basically do it for one month or for an entire year, you can keep the game as long as you want to play it. and people really seem to love it. it's been super exciting to be able to start this and to be able to get the games earning money again. ashley: who is the typical customer for you? >> when we first started out, we thought it would be a lot of home users that just kind of were nostalgic, but at this point three out of every four rentals is going to an office. so i think there's a lot of companies particularly here in the bay area where they want to offer perks to their employees.

it's very, very hard to get talented people in this area, so you've got to provide them something special. and with a lot of these younger tech employees who grew up on these video game, it's a way that they can have a little bit of distraction during the day but still get their work done. ashley: where do you find the machines? we're talking old, old school. do you find them, i don't know, craig's list, ebay, and what kind of condition are they in? >> oh, they're in pretty miserable condition by the time that we get 'em. we specialize in saving games. and so we want to buy broken games. a lot of times they're missing monitors and boards and all kinds of other places, a lot of times we've got to paint 'em, you know, put few stickers on 'em. but basically, internet forums, ask you've got to be quick to get 'em, because the cheap games go fast. ashley: so it's interesting. so you're in the bay area, what are your hopes for perhaps expanding from there? >> well, we've created a crowd sourcing model to our business where anybody who owns an arcade game with can upload a photo of

it and put the maximum number of miles they want to drive, and we'll pay them to make a delivery. we've got 25 partners that have signed up, a thousand games that we're ready to go live with, but we're testing out the partner module. in den vef we've got -- denver we've got one of our first operators on the vote. ashley: what's the most popular game? >> it turns out it's street fighter 2. they really love that game. i could have 20 copies of that game and keep all 20 of them working every single month. ash it's fascinating. and so, you know, you will actually deliver it yourself, set it all up and then swap it up if someone wants to try another machine? >> we are with our own inventory. we've got 150 games that we're representing out locally, but we're hoping that a lot of these operators who used to earn a lot of money by doing the coin-op side of the business, that they can start earning on the rental

side. if we can get somebody in buffalo, new york, to start serving customers there, we'll have them handle the delivery and, basically, we help them find the customers. ashley: well, we wish you the best of luck, and i hope i can get one of those in my home. seth peterson, thank you so much for joining us. we appreciate it. >> thank you. tracy: sent period, do you remember that? ashley: loved it. loved it. very old school. tracy: it is. ashley: kids today, like huh? tracy: because it looks -- remember with the rope? [laughter] ashley: yes. tracy: we're old. i know this is going to make you happy because something is finally being done about the bad weather that has plagued the u.s. open and pushed back the men's final for the last five years. the uta announced a retrial court bl roof will be wilt at the arthur ashe stadium in flushing meadows. and you wonder what took them so long. that, of course, is the main venue for the touit'll bring thn

line with the australian open. the construction is part of a clash 550 renovation plan. this year's open starts august 26th. ashley: and if wimbledon does it, my goodness, don't you think it's about the time the u.s. open did it as well? coming up on "countdown to the closing bell," the great pullback. if today's market drop was a good buying opportunity, and if so, which stocks should you be getting into? we'll break it down next, cheryl casone on the way. stay with us. right now, 7 years of music is being streamed. a quarter million tweeters are tweeting. and 900 million dollars are changing hands online. that's why hp built a new kind of server. one that's 80% smaller. uses 89% less energy. and costs 77% less. it's called hp moonshot. and it's giving the internet the room it needs to grow.

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♪ ♪ >> good news about jobs shocks investors, sending major markets tumbling. betting the fed's paper is coming sooner rather than later. walmart slashes its forecast. the nation's largest employer

warning of lower sales and profits for the rest of the year. is now the right time to shop for walmart stock? wait until you hear just how much kids cost. one child could cost you as much as a four-bedroom house. "countdown to the closing bell" starts right now. ♪ ♪ cheryl: i'm cheryl casone in for liz claman. it is the last hour of trading, and the major indices are lower this hour after getting slammed by new economic data and earnings reports. first, the number of americans seeking jobless benefits dropped 15,000 to 320,000, the fewest since october of 2007. all good news, right? except it appears that investors believe this means the fed will end its bond-buying program sooner rather than later and cut off what many traders call free must be. we shall