cme first went public. acquisitions, are you done? do you need get bigger? what's now? >> i don't know what happens now, but we've done a lot of big, strategic deals, as you know from the board of trade. we have presences not only in the u.s. but small stakes internationally. we're in a really good position while other people are trying to put those pieces of the puzzle together. >> we'll keep talking about all these issues. coming up, is research in motion finally moving in the right direction? the blackberry maker got unexpected good news today. does that make it more likely a buyer will emerge? that and more on this special tuesday edition of the the "closing bell." >>> lessons learned. young people are cutting back on credit cards and boosting their savings. but is that actually a bad sign for our economy? >>> and an official mess. will monday night's debacle force the nfl to end its labor dispute with referees? or will the league continue its hard line stance? it's all coming up on the "closing bell."

cme group said no technical training issues.the spec lays in the government may tap the strategic petroleum reserves. the white house says all options are on the table, but there is nothing to announce. shares of netflix with underperform rating. media companies hold the upper hand and netflix efforts to contribute th movies and shows m them. the cover up of fraud from the founder. according to the "wall street journal." he has pleaded guilty to the fraud. the bank denies the claims. that is the latest from the fox business network giving you the power to prosper. [ mujahid ] there was a little bit of trepidation, not 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 about, well you know, i won't be, and i get the chance to spend more time with my wife and my kids. it's my world. that's my world. ♪ these are sandra's "homemade" yummy, scrumptious bars. hmm? i just wanted y

the cme group now commented on crude.saying that there were no technical issues and our cme groups markets performed as designed. whatever that means. sandy will get more deeply into oil. financial really taking it on the chin, nicole. >> financials have done so well last week. we're seeing more of a range. much maybe some concerns about the housing numbers coming up. but they sold off a

cme group in chicago. >> thanks, jim. you know, tomorrow morning of

traders at the cme group and the nymex. i look at this market i think it had such an incredible run over the past 1 six to nine months. >> i think the only thing that really seems to be holding up is the fact the ecb is expected to do something very dramatic in terms of monetary stimulus. that is what is holding us up. a lot of speculation of what the employment numbers will be. that will be an interesting correlation to make to see if he sees it the same way the numbers really are. i think that is really what we're waiting on. they are still not heavy. liz: we will be watching. these are the kind of things to look at because it gives us a sense of real participation or not. looking at commodities, we have the euro now picking up a little bit of sign of life, what is the number one thing traders are looking at today? >> there's a lot of money off the table because of the payroll, but we have a big color in the market. prices go lower, if the price is to hire, those are debated and we have a color that he cannot go higher an

jp morgan chase downgrading the cme group. this one cuts close to home, mr. iurio.gan sees a disconnect between the fundamentals in cme's core business and the price appreciation and valuation of the stock. shares of the group up 23% year to date. a sensitive topic. guide us through it. >> one i will not count on the stock price. 20-plus year member of the cme. won't comment on the stock price. i will say the historical trends, periods of very, very low volatility are followed by periods of very, very high volatility, and they're usually in equal proportion. my thinking is, not just in cme, but anywhere where things are traded, volatility happens. when it snaps back, it's probably going to snap back in a vicious way. i neither agree or disagree, but volatility will come back in the trading world at this time. >> very carefully stated. >>> zinedine ynga, very big and controversial move. it's a big gamble on the future of the company. what will it mean for the stock? that is next. plus warhol on the loose. we'll explain coming up. [ male announcer ] for the dreamers..

starting with larry at the cme. give us a quick mention of a snapshot of what you feel really drove this past month and quarter because it has been pretty good but what happens the third and fourth quarter? >> you will see it continue to rally. talk about how the markets have rallied over the last quarter, giving them back kind of pulling onto that rally so to speak so it is interesting to watch the market when they so often are able to hold the levels they have, 1429 the s&p, the number you probably want to watch. lots of buyers coming in, people want to buy them whether they are going up or down and right now we're doing a little bit of going down. lots of buyers coming in. david: a question if the market is losing a little love for qe3. others had more of a sustained pop, is the love kind of dissipating a bit? >> to look at the ratio the first was decent, the second one was less than a lot of traders expect the third one to be even less than the last. traders will get in front of that. aggressive traders are goin

ashley: jeff flock, at the cme, thank you very much.get more on where oil prices are heading and what it means for the price you are going to pay at the pump. thank you for being with us. we have all this talk about illegal moving rapidly today. we are talking about potentially $120 a barrel. do you expect to see that? >> no i do not. history has been very clear. once oil starts to get up to this level, it is at the top of its mechanism. all of the sudden the economy starts to naturally correct itself and bring oil prices back down to lower levels. we may have a couple more dollars, but i do not see much more room left in the oil price at this level. tracy: we are closing oil at $96.22 a barrel. they do not know what that drop was. what worries you the most? earlier phil flynn says nigeria. what part of the world concerned you are not all eyes are focused on iran if israel decides to make any kind of strike there. i think that will have a big impact on the price of oil. tracy: you know, the next question, of course, is whether or not th

let's get to the cme., what is the one story today that jumped out at you where you said this is something to watch over the weekend? >> the one story that really took hold of me in chicago is the 1.7% yield that we're seeing in the ten year. you know, a lot of individuals thought that the u.s. was a flight to safety, a lot of traders positioned themselves for 1.4 yields over the next couple of months. what people are doing right now is really deciding to take the euro. the open check that bernanke has, 40 billion dollars, and he doesn't think the labor market will improve for two years. that's almost a trillion dollars in stimulus. look for a lot of upside to the euro to maybe going to 140 range by year's end. liz: that is an excellent point. just when you guys think that the -- you, all of us, think the market is going to do one thing, it does another. again, treasuries i would have thought those yields would come down, they did not, as you point out chris. let's get to the new york stock exchange. equit

let's get to sandra smith on the floor of the cme.lready talked about gold, pretty impressive move here, but again at the expense of the u.s. dollar being so weak. sandra: that's right. that's definitely the trade that was put on today following the jobs report. that is that indicates a strong possibility of more easing by the fed. that would depress the dollar and that would send commodities up. take a look at the big commodity movers today. copper prices hitting 16 week high. silver prices have been quite on a run, at the highest price since april. wheat prices skyrockets. gold hitting six month high. rbob gasoline up for a second straight day. it continues to rally, even when crude doesn't, crude is actually down earlier today. it is now back up, but crude oil definitely one of the big movers today as well, up a full buck -- a full 1% gain on the session, so liz, gold was shining, but most other commodities were as well on the expectation that the dollar will weaken if we get another round of easing from the fed. liz: so glad you m

that's the end of the trading day at the cme. scott, thank you very much.iz: he's happy for that finish, i'm sure. thanks, scott. michael kors, right? the designer? this company's done unbelievably well since its ipo. let's head back to nicole for the bigger and bigger, i guess, more important story. >> reporter: yeah. the bigger picture is that michael kors continues to do very well. you do see a down arrow today of 4%. secondary offering goes well. let's back it up and talk about the fact that year to date the stock is up 92%. each time that they initiate with more shares, they're getting them out there, there's still demand there, and what we're seeing is the founder and namesake, michael kors, continues to make millions out of this process. so on monday evening b the company placed its second public offering of shares and up 165% from the ipo price. so they continue to do so well, and we get their sales numbers, and they continue to grow. david: all right, nicole, thank you very much. well, this was the story. if there's any one issue that led to that g

he focuses on what he does best which is the cme trading pits. we had a very nice september. >> it does. when the fed pulled out all the plugs and you get the ecb to pull them out, where are you going? if you want to fight that money pit, you are on your own. they can throw all the bad news out at you. we will go right into the christmas season on relatively good suiting. it is the last hour of trading today and anything can happen. it will be money moving all over the board. you can have that end of the month quarter. borrowing that, i would say deep rates should be taught. liz: i agree with you. you can fight the money pits all you want. that money is unbelievably huge indeed. let me get to the imax. i would love to focus on crude, but the story is really natural gas. >> it has had quite a rally. especially after october came off the board. it is just gone straight up. i think it is very short-lived. i think we will get to 340 and sell it. i think we will see some very low flows. liz: wait, why? are you reading the farmer's almanac remapped wha

sandra smith joins us live from the pits of the cme with today's trade.big problem and one that the consumer is not facing now, they will definitely face down the road as we see a shortage in. look at these prices every day. you are a boy from texas. what is this doing to our meat market? >> what corn does is, obviously, corn is a price to hogs and cattle, for that matter. if you get a quick move in july, the core prices go up. it cost too much to feed them now. the front month is reasonably cheap, but the deferred months are really expensive. sandra: next summer we will be paying a lot for our bacon. >> 30% more than where they are right now. sandra: we are talking about the lowest level since 1975. this affects a lot of stocks as well. >> mcdonald's. anybody who will go out there and be a user. i think that is why this subject is being talked about. some food companies are really starting to get concerned and starting to shift menus around and that sort of thing. sandra: he just brought up a point that i have to look at closer. mcdonald's and some of th

not a lot of action on the floor in positive territory in terms of the cme. only ones back in the meet it. that was all that was the because grains were down the first oil, yesterday's huge drop of. the cftc investigating but no definitive reason. will come down to a combination of factors but oil pulling back another dollar today. maybe just a bearish time. not just oil but gasoline too also down. grains in the tank but not as bad as yesterday. yesterday was sell-off in the grains, soybeans down the limit caused some people to have margin calls and sell oil to get out and that set a cascade of events of. as good a guess as anything but grains were down on a positive harvest two days will be on a farm. we will show you what the harvest looks like. liz: go back to the meet its. [talking over each other] liz: sort of a market it there. >> let's take a look at some of the retailers. this is the day i am seeing a lot of down arrows. not a dramatic move but the banking index is lower and the dow is down four points. let's look at polls and bed bath and beyond. you

liz: that is what jeff flock was saying from the floor of the cme. and it was too sustained over a short period of time. 1:53 p.m. eastern time, 500 oil contracts were trading, 1:54, 12,500. so obviously something is happening. how do you investigate a market spasm like this? what do you start looking for? >> it is a normal thing for us to get all the trading information and start slicing and dicing it. our guys have been working very hard at doing that, that is why i can tell you about the fat finger thing i think was pretty much ruled out. i can also tell you the cheetah traders were in massive amounts into the market this time. we start looking at who was doing what. there is also the link between what was going on not just in the west texas intermediate crude market, the trade on the nymex, but also in the relationship between what was happening at the intercontinental exchange which trades brent in london. those things may have some relationship, and we're looking at all of this stuff working in an appropriate sense with our fellow regulators in

cheryl: want to give you a quick check on the markets, we have sandra smith on the floor of the cme,icole petallides on the floor of the new york stock exchange. >> reporter: all right, i want to take a look at the home builders. hovnanian, you can see it's as i showed it to you, it's down 6% at $3.42 a share right now as we speak. a couple of things worth noting, many of the home builders are setting session lows here as we're going into the closing bell. we did get in some sales numbers, and they weren't too good. so those numbers were a little bit of a disappointment. the one glimpse of hope is that prices have been increasing, so that's something, that's the good side. i should note that we are at the barclays post, and barclays actually cut the whole group can yesterday, including lennar and kb homes. also take a look at some of the home improvement names, right? scherr win williams, lowe's, dow component home depot, those are some names to look at as well. overall home builders for 2012 have done an unbelievable job, hovnanian up about 137% year to date, but this week a tough w

we know that the cftc is looking into the trades, but the cme is not canceling any.sa: interesting. we have gone on from the beginning of the show talking to us about he does not think that this was an accidental trade. this was, you know, the result of contracts expiring in rolling over, maybe light trading in reaction to friday's big run-up. it will be interesting to see what happens from here because that was a huge move and the big deal to consumers. mitt romney losing ground with voters on the issue that should be a slam-dunk for him. that is fixing the deficit. can his new ads put a stop to decide? top from the economic adviser glenn hubbard joins us in a fox business exclusive coming up next. plus, kicking uncle sam to the curb. once the government to dump its stake in the other makers even though it would cost taxpayers billions of dollars. we are putting an end to government motors. details on that coming up. too much money. no way. we will be right back. >> we have a moral responsibility not to spend more than we taken. we can't keep buying and spending in

let's go to the cme and daniel, want to get your take on what -- on where we're at with the s&p. how do you factor in what bernanke may or may not do come thursday? >> the market has factored it in. they obviously believe there's going to be an ease come tomorrow. i'm not so certain. and even if it does, there's going to be a break in this market. we've had an incredible rally over time, and you may see a little more pop after that announcement, but i'm not willing to buy yet just on the unlikely event he doesn't do anything, you're going to see a pretty decent breakdown here. you could reach in a hard-pressed way down to 1397. i don't think we go that far, but then buy into it because i do like the market fundamentals. cheryl: you see buying opportunities even at that level, that's good to know for all of our viewers. over at the nymex we've got tom reilly standing by. tom, obviously, i want to start with oil because, obviously, as we look at now that summer is over, we're moving into the change for the gasoline blends, yet we're still seeing strength in the oil contract. why? >

david: let's start with john at the cme, john brady can. first of all, let's talk about the fed meeting, its effect on gold, down day after day of hitting new highs. i assume that's because people are paring back their feelings of exactly how far the fed is willing to go. >> that's exactly right. given the runup in commodity prices over the last two weeks, especially last friday, i do think there's been some position squaring ahead of wednesday, thursday. you know, as much as the market's leaning towards additional stimulus from the federal reserve, the market's not quite sure what format it will take. will it be qualitative or quantitative, mostly in the mortgage market or the treasury market? so there's a little bit of the unknown in here. then again, of course, on wednesday you have the important dutch elections as well as the german constitutional court ruling, so there is some room for interpretation here, and there's been a paring back in some positions today, i think you're right. liz: but, john, i'm just wondering if the behavior th

let's start with scott at the cme. scott, first of all let's talk about gold. putin by the way he's been stocking up on it. i hope you have too. $1800 an ounce sounded like a long way away last week. this week, it sounds like we're right on the edge of it, no? >> oh it sure did. and this has been one of the biggest momentum plays over the last year. you know, when it moves like this, and then news like this morning with the bad jobs report and a weaker dollar, this thing definitely has potential to head back to 1800. its recent high. probably happen sooner rather than later. but, you know, this is the momentum trade, and these guys and all the traders i know, they don't want to buck this trend. this is big-time to get on the backs of this one. liz: but we have got to clarify this, when you are talking about the momentum trade, so much of today's move had to do with the weaker dollar, when the fed appears to be poised to jump in, that usually weakens the u.s. dollar. does it not? >> oh, it absolutely does. and we'll see what they have to say next thursday. there

let's start, first, with john at the cme. john, europe seemed to spook the market today, and it wasn't a real hard, down, negative turn, but it certainly was like a nagging stomach ache all day, right? >> that's right. maybe an issue that doesn't go away. and the smoulders continue to bush in this fire, david -- burn in this fire. spain will make their budget and france on friday for 2013 public. but they're still wanging between the germans and the spanish specifically as it regards a formal spanish request for a wailout. so the market doesn't like the fact that the fire's not out, the deal's not done, that it continues to smoulder, and i think you saw that price action in both the euro currency and weigh on european and u.s. equities today. liz: well, except for the fact that, yes, u.s. and european equities get weighed upon, but when you stretch it out, this is going to be the first september in quite some time where we've done pretty darn well, and then we also have year-over-year numbers. the dow up 26%, the russell char

traders at the new york stock exchange and the cme. to have seen a deficit of 71 points and then to mark it all the way back up, cross the flat line 17 times at last check, what's that say about the psychology of the markets now and for the investor who is watching you? >> well, i have to tell you, traders are confused as to why we have the rally. numbers were not good. i think overall, news out of europe and china has not been good. we have a little bit of a disconnect. clearly, i think the housing market is still the thing pushing us. we have real estate, and four ipos did well, the first being over 40% at one point today. i don't know where it's at now, but it was almost 45% at one point. that really speaks to the strength of the news on the housing market has in this market overall. liz: very true. glad you brought it up, equally happy you brought up china because while everybody, most of you are sleeping, china came out with manufacturing numbers. you saw it in the cme pits, and the manufacturing numbers slowed down for the 11th m

traders at the stock exchange, cme group and the nynex as we look at a day like today where you see a lot of options exploration and squaring of positions does it surprise you that the market is higher with no real news out there? >> typically what you have, option exploration weeks the market is higher ntsb struggling to get back. we started at $14.65 monday so it will get back but the quarterly s&p balance, the 500, and the 600 where you see a lot of movement. you know that it is higher today and face more on the s&p rebound, watch the close today where you will see a lot come in and index managers and anyone who matches the s&p 500 index will write their position for the ads and that is where we see a lot of transaction. liz: we are right through the closing bell to make sure you get all the information you need including the nasdaq is at a 12 year high. very important perspective. in the cme you look at day-to-day moment but when you stretch it out it is a heck of a time for the nasdaq looking very strong. >> the nasdaq takes a look at apple and the tech sector has been extremely

agricultural markets were some of the biggest movers and the worst performers on the us cme.ive cattle is the worst performer today. we're getting indications that their light demand coming globally. we are a net exporter of these around the world. the most prized beef in the world and some white demand for that. the global weakening of the economy being reflected in those prices hitting a two week low. weak prices fell after russia had trout like the united states indicated their production and output won't be as small as once predicted so prices came down and we have been talking about is all day. we continue to see -- we can't afford to feed these animals. and lower prices, in the chicago tribune today, worldwide bacon shortage is coming. long term after those are in the market and prices go down, tight supplies are going to turn around so that is the trey day. we have commodity winners. liz: don't even trade pork bellies any more. [talking over each other] liz: when it comes to the stuff. let's shake up with the team. biggest stories moving the market and we are going dow

to the floor, the ones we know and love at the cme group and new york stock exchange. okay, ben willis, focusing on the fact september not looking that bad for the month. >> no, it doesn't. as you said earlier, it's normal. it's historical performance where it's a down month ahead of october, but, again, you have to -- the single biggest factor into that movement is because of the central bank's hot air. there was ben bernanke clunk the market up and it managed to hold on into the closing sessions of this week. the s&p closing, window dressing from the huge funds that may not have participated in the move, but, still, 3 #.5% is a very nice move for a month that's traditionally a down month. liz: i know, and september, i try to tell people usually it's bad, but the market is focusing on fundmentals for once. there's touch and go economic data, but oil, as it comes down, it's cheaper for oil intensive energy companies to operate; correct? >> yeah, and, i mean, that could also boost -- directly hit the consumer. if we see gasoline prices come off qieblght as well, this co

let's start with larry at the cme. the first thing i saw this morning very early, one of those of you were sleeping issues. the european central bank indicated, or at least there was a leak of some sort as there always is, there might be some bond buying trend that people were waiting for, on the shorter data parts of the european, but the market read that as it will be saved. did not at all. >> it did not. i think everybody is waiting to see what that is. you simply cannot deny that right now the very divisive -- decisive time with your. i mean, are they going to come up with a blueprint or will there be more distractions, more we don't know. we don't know what's going to happen. it seems like we priced it. it will do some things, but we need a road map, and i think that is why we have been on all in the stock market for the past four weeks. david: well, that is this thursday. next thursday we have our own central bank coming in with its decision as to whether it will do something. i'm wondering, since over the long w

let's go back to scott bower at the cme group to give us a sense of what you are seeing at this minute>> we are seeing everyone that had been a little bit short in the end of the market covering everything. again, i just spoke to five or six of the traders. they are all of the mine sets this market has nowhere to go in the short run other than up. nobody's short. everyonements the cover, especially after we saw china down 4.5% this week. nobody wants to go into the weekend and maybe see some sort of recover fry from china. the theme here is just be long. a lot said going into the election. i don't know if i would go that far out, but at least in the short run here, nobody here. s to buck the trend. david: good stuff. thank you very much. have a great weekend. appreciate it. >> same to you guys. david: obesity -- antiobesity drug maker closing down double digits. nicole is object on -- on the floor for the details. >> trying to work on medications for obesity, and some sold off, down 11% in trading, and that is because they are anticipating over in europe that the commission will show d

let us start with scott at the cme. scott, first of all, as i was mentioning before, fed expectations seem to be weighing down a little bit. what happens if the fed announcement on thursday disappoints? how's the market going to react to that? >> yeah, david, first of all, i couldn't agree with you any more. over the last couple days we have seen all of these wild expectations really get reined in. so if we don't see what the market is looking for, if we don't see an extension of qe or even a full-out qe3, these traders are telling me we will probably see a maybe 4 or 5% pullback in the s&p, maybe down to 1380, 1385 at which point these guys want all in. these guys want all in. there's so much money on the sidelines. the money on the sidelines is looking for any sort of pullback -- david: by the way, how much money are we talking about? i've heard figures from $1-$2 trillion on the sidelines, what do you think it is? >> i've heard the same amount as you have. all i know is when you look at statistically what wyoming hea

dennis: thank you very much, phil flynn at the cme.tart for the former host of that nbc's today show. she scored the highest ratings mark for a new talker and more than a decade. it got a rating of 2.8% of all tv homes in the u.s. last time it happened at that high level 2002 with the premiere of doctor phil. cheryl: with obregon, who are the big celebrities going to go to? dennis: we look at day two of that chicago's teacher strike with no end in sight. parents have to skip work because they have nowhere to bring their kids. cheryl: everybody rise, judge napolitano is here to give us his take on the chicago's teachers strike. ♪ [ female announcer ] they can be enlightening. hey, bro. or engaging. conversations help us learn and grow. at wells fargo, we believe you can never underestimate the power of a conversation. it's this exchange of ideas that helps you move ahead with confidence. so when the conversation turns to your financial goals... turn to us. if you need anything else, let me know. [ female announcer ] wells fargo. togethe

connell: sandra smith at the cme.dra: in fact not only are commodities being stocks and bonds but u.s. dollar and what we are seeing as we start the month of september is blocking riskier assets. you will see traders in chicago returning from holiday weekend. busy day on the floor. look at top commodity performers so far this year. this tells the story. we have the midwest drought and soybean prices up double digits. soybean prices gaining 50% so far this year. a bit of a suite with the best performer the personal performing commodity in august a year to date up 15% and no surprise gasoline prices up 12% on the year. will discontinue? the back to today's prices and look at the top performing commodities in today's session. natural-gas and silver and koren not only seeing energy prices going up but grain prices going back again as well. in the next hour i will have a look at where big commodity areas including goldman sachs are going not only this month but the rest of the year. connell: markets roll along with more on

we also have felt played at the cme.n with nicole petallides at the new york stock exchange. nicole: a lot of the traders have talked about the wait and see. we are waiting to see what they will deliver to us in this hour. right now the dow jones industrial average is up. i want to take a look at the banks. sometimes they can be a good indicator as to what to watch. these are all the things we will continue to watch throughout the hour. here is how they are faring at this time. the ten year bond 1.71%. dennis: let's check in with bill flynn at the cme. >> that is a big move by the federal reserve. i have been standing here right now in the libor picked. they have been coming in on the 2005 euro dollar options. they have been betting that the said is not going to extend the time period of keeping interest rates low. right now the market basically pricing and a similar time when rates will go in november of 2014. that is for the october meeting. we will see rates go up a quarter at that time. there is a lot of nervousness

she is from the pits of the cme. sand sandra?etting the tone of traders ahead of what will be a busy week for the markets. what's going on this morning? silver, copper, food prices, oil, gasoline, everything on the decline this morning along with the stock market, what's going on? >> stronger dollar, it's a stronger dollar play mostly, but a lot of people went into the weekend especially now with all the geopolitical things going on and people are long monday, a lot of profit taking because the commodities have hit recent highs across the board. we have seen profit taking and stronger dollar. sandra: i wonder as we stand in the grain trading room, these are all indicative of the u.s. and global economy, is this a bigger sign about weakness in the economy that we are seeing the prices come down? >> weakness in economy but also bad numbers come out of china, also had manufacturing come down in germany. we're looking at a global slowdown, but i think the play is stronger dollar. look at the euro to continue to fall against the dolla

let's send it over to sandra smith at the cme in chicago. which ones are going to continue to do well? >> there is a lot of talk about precious metals continuing to gain from here. oil prices goldman has a bullish call there. bottom line on the trading floor since i got down here last friday there's a lot of talk about continued easing from the fed. that would devalue the dollar and push these commodity prices up even further. gold and silver if you look at gold, it is topping $1700 an ounce for the first time since march today. it's right around those levels, you know, the low and above throughout the session, but it did top 1700. silver prices it was the sleeper of august. it was one of the best performers, up a few percent today and one of the best performers so far this year, up 16% so far this year. crude oil prices on the day liz were one of the worst performers, crude falling about 1%. there was a drop in manufacturing this morning that led to a sell off there but nonetheless goldman is saying oil is going to go to 115 by year's end.

jeff flock was in the pits of the cme then and is there now again. what is the latest on all that? >> i like to go to the good news. meat is behind me, cattle and hogs that is only thing up pretty much today. i want to get todd's look on this let me bounce something off you, todd. look at the intraday chart. precipitous drop today. oil down $1.37 at number i'm looking at, todd. look to what we pieced together from traders today. yesterday we didn't talk about grains but grains were down yesterday. limit down soybeans. soybeans on the theory of some triggered some margin calls for some traders who also had oil. they sold to cover. the spr rumor was out there. >> options expiration out there. thin market starts to trigger stocks and there you go, you have a cascade. do you buy it? >> i don't. oil is covering a range between 94 and 100 going back six weeks. a release of strategic reserves or something happening in the middle east will trigger a breakout of that range. >> where do you see it going right now? >> right now probably leading to downside. as

sandra smith has the story from the pits of the cme in today's trade.ake it away. >> we want to update that story about the refinery based out of new brunswick, canada. they have resumed normal operations. we reported that was causing a dramatic spike in gasoline prices. this does 300,000 barrels a day. they returned to normal operations after experiencing a explosion. they were doing work on the reasonfiry. they returned to normal operations. gasoline prices hanging on to big gains from earlier in the session after we got a inventory report that was bullish for the marketplace. also a quick update on oil prices right now. we're still below $90 a barrel, guys. if we do indeed close below $90, this would be the first time dating all the way back to august 2nd. that was the last time we saw 89 and change. so, melissa that is a key level to watch here as we head into the last hour, last couple hours of oil trade, the pit trading that is. this is a big day today. the close will be a beg one. melissa: that contract looking really weak. sandra smith, thanks s

joining us from the floor of cme group, top traders alan knuckman and jared levy.ood morning, guys. round 1: hot air. texas is the nation's leader in wind energy, but with alternative power tax credits possibly coming to an end, which energy company stock would you buy now? > > this is not the end of oil, but the fact that oil has bounced up all the way to $100, you want to look at some other sectors. i think natural gas is still undervalued, and it dropped from $40 all the way down to $14, and right now it's only sitting at $18- the ung. the ung, right. looking at the etf that tracks natural gas, i think it's a more efficient way to play into it, and if it just bounces back half of this downward move, we still have about a 50% rise here. > > as a texan i support natural gas. i will say that i like chk a little bit better. i like how they move the gas around. i think chk has put a lot of money into that part of their business, and i also agree with alan, you can play with ung. one thing to remember though, you've got that negative roll yield. natural gas does take

jeff flock at the cme with that. >> the big story would be oil, but we have not seen that. is booming, one is crashing, i will tell you which is which when we come back. stand by. with the fidelity stock screener, you can try strategies from independent experts and see wh criteria they use. such as a 5% yield on dividend-paying stocks. then you can customize the strategies and narrow down to exactly those stocks you want to follow. i'm mark allen of fidelity investments. the expert strategies feature is one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open an account. >> i am lori rothman with the fox business brief. clearing the way for countries to participate in the european rescue fund. one condition, if the liability is greater than $245 billion. germany is the last of the block to ratify the fund. one of bernie madoff employees will receive criminal charges according to the "wall street journal" citing the justice department. former employee is pleading guilty to 13 charges tomorrow. his son pled guilty last year. ch

phil flynn of rice futures and a contributor at the cme.oving this. >> almost a record high in terms of euro. that is how significant this run-up in gold is. gold is up $34 in the u.s. and flying into the q e stimulus and don't think ben bernanke will be left out. rocking in the gold market. cheryl: oil had been down throughout the session and we are moving to the upside. what is going on? >> an hour before the close a story broke out on a website that the u.s. was getting ready for a major release from the strategic petroleum reserve. that is why we saw oil breaking the last hour but today the news is there was a meeting in the white house with top energy experts and some of these experts are saying go big but nothing has been done. that is why we're coming back. we will join the rest of commodities in a rally. cheryl: the headlines are always moving. if that is true it is a fascinating headline. thank you very much. dennis: pandora and cereus ex-im be where. the radio giant faces steve competition from the rock star apple. cheryl: preside

let's go to the cme. do you agree that actions speak louder than words? does look like action out of the european central bank? >> phenomenal what they did. they did something you live with that you understand. there are certain strings attached. countries that get the money don't get the money. countries that get the benefit of lower interest rates have to make their austerity work. this does not mean spain and italy have to come to the pcb and ask for help. the threat might keep interest rates down enough -- the market likes it. gold is up. we have three more things to get through. jobs data, open federal market committee meeting and how does the german court will on everything? very important. >> some important issues. the fed rearing its head. that may be absolutely major and as we look at a positive day on the market crude has reverse that is moving slightly lower at had been lower. at and energy be rallying along with this party if people believe companies might do better? >> it should. most of this year it has done that. as the stock market rallies

phil flynn of price future group within the pits at the cme for us. oil prices are unbearable for consumers and this could help push the global economy back into a recession. that is really bad news. phil: the market is taking this seriously. this is taking speculation that we will see an eminent relief. showing some resistance to this in the past. this may change his mind and may mean a relief it smart likely. we are seeing prices back at 98.73. that is amazing considering what we are seeing across the middle east. another headline is that this violence has gone to nigeria. live rounds fired at protesters. back to you. melissa: it is a perfect storm for oil. also, be sure to tune into my one-hour special on oil. where should we go here is not i just got back and took a hard look at this exact issue. we will go over all of that tonight at 5:00 p.m. on fox business. lori: the federal reserves latest push to help the economy certainly pushing the stock market. let's go to peter barnes. he is live in washington. peter: these outside economists are gettin

connell: sandra smith is standing by on the floor of the cme with the trade. sandra?dra: hey guys, take a a look at the oil prices right off the bat here, looking at a drop below $90 a barrel and that level holding after we got the key inventory report from the government. remember, this is a pivotal level to drop below $90 a barrel. i was talking to an analyst this morning who watches this market very closely, he does call 90 a pivot level and a drop below there could bring more bearish sentiment into this market. here's the inventory numbers that changed -- that changed that number this morning. that drop was not expected. a build was actually expected for crude oil inventories, but here's the bearish point about that, guys. overall supplies are still 7% higher of crude oil than they were the same time last year. we're still not using as much of this stuff as we were just a year ago. that's what continues to push those prices down. and on this drop below $90 a barrel, the energy management institute says that, the markets are coming to the reality that qe 3 in the u

sandra smith with details in the pits of the cme in today's trade.ri, i was chatting with one of the traders and said this is classic example of traders caught unawares. look at trading pit right now. still in the heat of the session, although corn lock limit up, 5% on the session. up 40 cents on the day and 40 cents on a $7.5 bushel of corn is a big move. that is lock limit. that is most they will allow to rise in single trading session. what we got at the end of last year's crop here, the amount of supplies on hand were lower than expected. remember, we're the largest exporter of this grain in the world. we're having to shell out a lot of this stuff at a time when our crop here at home is drought stricken. so the corn prices still skyrocketing. i was tallying up with one of the traders. corn is up 17% this year. it is outperforming the stock market. that is why it is getting all the big institutional money flow it as we work into the last quarter of the year. back to you guys. lori: food inflation. there it is. sandra smith, thank you. melissa: lab

sandra smith has the details from the pits of the cme in today's trade.from spending time down here on the trading floor, melissa, the trade definitely is to continue to buy the commodities. in fact some of the biggest performers so far this year have been things like natural gas silver is the sleeper commodity. it is the best performer for august and one of the best performers so far for 2012. it definitely has been the grains have been outperforming all things, even commodities themselves, plus the bond market, the stock market and the currency market. those are expected to continue. right now if you look at the price of corn, goldman sachs put out a note, they believe corn prices will continue to rise from the levels they're at today. they're calling for $9 a bushel. a 13% jump from where they are today. they say they will see that before the end of the year. oil prices they like oil at these current levels. they're calling for a 19% jump in oil prices by the end of the year. that is just a three-month gain, guys. they're looking at high commodity pric

at the cme. the convention brings business to the host city.e and catering expect to see over $1 million in sales. the president is with us, i jill, thank you. studies have shown businesses rarely benefit. how do you do so well? >> as a dictator we have been very involved kicking off with the media opening party with 15,000 people that we have been a poll. tracy: you were chosen ones you applied to be a vendor than needed another 200 part-time people? you have that much demand? >> yes. we rented a warehouse for equipment and supplies also for training. tracy: one happens after they leave? will you get more business? >> we have definitely a gotten better as a caterer from what we do and making ties within the community. we have made new customers. we're well set up to take on bigger parties and. tracy: i apologize i am not a time with breaking news. congratulations. making money and giving people jobs. >> our pleasure. we are glad it is over. [laughter] tracy: something class the cafe and catering. check her out. we have the dow up in asset webs

the cme group, the nymex. let's begin, thank you for joining us at the nyse. look, the initial economic data was pretty miserable, but the market is not really responding. >> clearly nobody's paying attention to the u.s., it is all about china, the additional stimulus and all of that. traders really have found this market to be quite oversold taking the opportunity to ride on the back of good headlines because that is all that is driving us is headlines. make some money. i think they're taking a little bit of money off the table at the end of the day. ashley: are we due for a correction anytime soon? >> you're hearing a lot for people talking about corrections for what people would normally expect after a run-up like this if you are going to have a correction. some pundits say as much as 25% would not surprise them. a lot of negative stuff. ashley: todd, you see the market is a little as well. >> we're up against a great resistance level, 1449 s. and p. you have to make sure you protect yourself because i do believe a correction is on the horizon. based on the

rick santelli with the cme group. >> thanks, jim.re's not a lot of horsepower in the treasury complex since the fed statement and the subsequent move where rates jumped a bit higher. they've been moderating ever since. if you look at a 24-hour chart, hunkering down here. as the market seemed to be focusing on some of the spon sponginess and whether it will need a bailout or not, it seems to linger on. if you look at the euro currency, it's easing off a little bit. dollar is easing back from four-month lows and the dollar/yen, even though the move has been small, we're getting close to testing the september 13th lows on the dollar index that were seven month lows and we want to pay attention as more and more issues come out as the state of the japanese economy and the relationship between exporters and favorite customers like china and germany. back to you. >> thank you very much, rick santelli. brian shactman is at the nymex. brian? >> the only thing green on my screen has been the dollar index and german business sentiment factoring

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dennis: top of the hour every 15 minutes, phil flynn at the cme with gasoline rising again but nicoleh the new york stock exchange. its rays hitting the lowest ever, nicole. nicole: this is the time to talk about mortgage rates hitting the new low. 3.40% for 30-year fixed rate mortgage. you can see that is one that will be on the move. we got pending home sales down 2.6% month over month. year over year up 10%. look at the hom homebuilders, my of these names are up 80%, 90%, more than 100%. how about we take a look at the broader market, up 48 points right now. the nasdaq doing the best up nearly 1% at this point. phil flynn, tell us what is going on over there. phil: i'm telling you, nicole, it is exciting at the gas market. shortages in supply that every major delivery point. the gulf coast, you name it, causing a lot of the wholesalers to buy it up. if you look at the spread between the front futures and the back month, it is the biggest spread since after hurricane katrina. that showed a lot of nervousne nervousness. they will take any price course. the other thing adding to the v

phil flynn of price futures group in the pit at the cme. news of a factory slow down, saudi raib wra -- saudisaudi arabia, what do you e of it in >> trying to hang in there, and one of the reasons they may not be is a concern about venezuela, tighter concern on products, keening us out there, and people are looking at that data in china wondering if it's a matter of time before the chinese jump on board with a stimulus. that could be another reason we're not adding dramatically losses. >> as in a qe4? >> surely. >> sounds ridiculous, by stimulus in china, japan increased this week, why not china too? >> come on. they have to join the party. they don't want to be left out. peter talked about the fed guy saying it's working so as qe3 and 2, 4 has to be betterment i think that's another reason why they are there today. the other market, natural gas, and i know melissa talks about fracking today, but we saw a higher than a little lower than expected injection in the supplies, but we are getting back to normal on the natural gas market to help t