dennis lockhart and some people might be willing to do that but is she? i am wearing a pink today in honor of the new fed chairperson. liz: she has been in the chair for two minutes. she has been very clear that barring any dramatic problem with the data she is going to continue on the march to tapering. she is off to a good start if you are a hawk. why don't you see it that way? >> i hope you are right but historically she has been more of a dove. she is in a position where she needs to be the new person. ben bernanke was not but it remains to be seen. she has always heard on the side of labour and took too easy monetary policy. adam: the fed has been inclined to dismiss the problems we have seen with the data starting back in december saying it was the polar cortex, the extreme cold weather, all kinds of issues from the snow that is shutting things down. they know better than to take those pieces of data more seriously. do you agree with that tactic? >> when it comes to housing starts that has been the main reason why housing starts have been slow but t

could possibly throw it out things dennis lockhart of the atlanta fed said. looking ahead we got weak housing data. what do you seize upon this moment, optimism or pessimism about stocks? >> basically optimistic. i think what you have to think about is, is the united states going to start to lift off in terms of its economic activity? as the united states starts to speed up, the rest of the world will then follow along and speed up as well. so you looking really for the united states to speed up. so therefore you want to probably be invested in the united states for the most part, stay away from your emerging markets until the taper is over with. that sort of thing. but pretty optimistic on 2014. it is not going to be a year like last year where the market went straight up and you didn't have pullbacks. david: todd, we had a pullback in january, about 5 or 6%. we've had a comeback since the pullback. where do we go from here? >> i think we go lower. the top level, we reached almost the 1850 level on s&p. i think market continues lower. david: i want to press

dennis lockhart, the federal reserve bank of atlanta president had this to say. the recent mixed data could be a temporary thing. weather explanations suggestions or something for ansar al-mahdi al-muntadhar going on. something more fundamental going on. even the fed, rick, maybe something else is fundamental here, maybe something is going on. this has been a five-year expansion overall? >> it has been 7 year recovery in the housing market. we're absorbing overbuilding since last time. vacancy rates are higher than normal. we have 1.million properties in distress coming forward. we're not there yet. the good news the market is recovering. it is just going to recover more slowly than past couple of years. gerri: i want from both of you before you go, outlook for economy and housing coming up this year. rick, i will start with you. >> i think we can expect to see a relatively flat year in existing home sales. we'll probably see slight up tick in new home sales. but i don't expect to see prices go up much more than maybe 3 to 4% on annualized basis. gerri: lance? >>

the atlanta fed president one of the reasons, dennis lockhart saying he could see a rate increase, not the tapering, an actual rate increase, by mid-2015, but the blue chips are fighting back right now. we're down 16 points as we head toward the last -- the closing bell here. >> is the fed misreading economic slack? we will hear from one economist who says they are and that it could end up hurting the economy. >> and then there are the geopolitical concerns. you saw president obama responding to the escalating violence in ukraine. there are still other hotspots around the globe, middle east, syria, south america. we're going to look at whether that could end up hurting investors right here in the u.s. >> let's take a look at markets now as we enter this final hour of trade. the dow is off by about 17 points. the s&p 500 shedding 4 or 5, and the nasdaq is negative breaking quite a spring of gains at this hour. what's interesting at the same time though is to look at the ten-year interest rate which has been on the move up even as some of the data has disappointing, bill. >> look at that

dennis lockhart, head of the atlanta fed, out with some comments just a moment ago. the bond taper is likely to continue and end by the fourth quarter. a big change in the economy is the only thing to stop the taper, reiterating essentially what evan said yesterday. he also braces for some of the data coming up, maybe weak on the weather there. take a look at the s&p, sort of steady as she goes. we were not far from the highs of the day. we sort of came off of that as lockhart made his comments. rick mentioned moody's upgrade of mexico. i think that's important and it definitely moved the etf for mexico. there's the eww, that move up as moody's upgraded mexico by a notch. and a lot of the questions here are whether or not you can successfully differentiate emerging markets now. so mexico's up today, turkey is sort of not, indonesia is. a lot of people trying to argue mexico, poland, nigeria, other countries that are doing better than other parts of the world, their prices should be up and not completely sold off. maybe this will be a catalyst to start a conversation

the atlanta fed president one of the reasons, dennis lockhart saying he could see a rate increase, not blue chips are

. >>> now, atlanta fed president dennis lockhart says the fed's $10 billion tapering of its bond buyings although policymakers could adjust the pace if necessary to face a material change in the economy, especially for the worst, could make them re-evaluate. but he says it's highly likely that the current pace could continue. lockhart says he's not sprieurpd by the recent market sell-off. >> now, they might have been yesterday, but they're still very much today. a really big piece of beatles memorabilia is going on the auction block. a section of the stage back drop signed by the group is going up for sale in april. it's expected to be the largest set of autographed piece. >>> coming up, coke adds some fizz to shares of green mountain. buys a big stake in themaker of those single cup coffee machines. more on their plans for the future and what that could mean for the competition, coming up. >>> welcome back to "worldwide exchange." let me give you some headlines. mario draghi faces an inflation dilemma at the ecb policy rate meeting today. a blockbuster movie about a frozen winter wonde

philly fed president charles plosser and atlanta's dennis lockhart. warner will report results before the hels. after the close, we'll hear from disney, twitter, allstate, green mountain coffee roasters, pandora and yelp. i'm not quite sure what -- green mountain coffee roasters. it is all one. >> we're together in that. >> a bit of a bounceback yet. treasury yields still around 2.6% mark. i think they're just going to wait now for the -- >> adp and payrolls, exactly. >> ism today, as well, nonmanufacturing. yes, that's right. this time yesterday, the u.s. saw the worst, the worst start to february. and i saw some great stats that said it was the worst start to the s&p since 1933. however, that year, it rallied 46%. and guess what was the best month to buy? >> february. >> february. >> there we go. >> smart. >> there you go. there's that. >> you never know. >> that is very well worth pointing out, the worst start since 1933 ended up being a great year. >> a great year. >>> let's take a look at some of the earnings we've had out today. swatch trading n

that puts it about the middle of 2015 which is pretty consistent with what dennis lockhart said the other is odd that some investors reacted the way they did to the minutes. is a communications problem in the making? it still keeps people on edge a little bit. what the rate change process would be. they are focusing on other dimensions of the labor department. they are very neevous about this. they had that 6.5% trigger. that is what people are focusing on when they read the minutes. dagen: one at a move-up and longer-term interest rates do more damage to a still recovering economy been moving up short-term interest rates? the federal reserve not directly controlling interest rates. >> one of the big links is to the housing market and mortgage rates. if you start seeing an uptick in mortgage rates because long-term rates are going up, then, yes, that will put downward pressure on the housing market. in particular areas where it has not been recovering as fast as florida and california and other places. dagen: bob, good to see you. be well. >> thank you. connell: blockbuster. it is not wha

>> atlanta fed president dennis lockhart saying that the $10 billion fed taper, speaking by the way atotary club of birmingham, alabama, the $10 million taper is the default mode for the federal reserve. other fed guys have sort ever suggested this. he may be the first one to come right out and say it. it's been really what the market that is thought. he said the stock market may have gotten ahead of itself and he's not surprised by the sell-off but he doubts, however, it was in a bubble. he's one of several people out there the past several days, fed speakers, who have defended the schedule for the tapering given some of the weaker economic news and what's been happening in emerging markets kind of suggesting despite these things, the fed is on track and it being the default mode and earlier in the day he had said it would take an awful lot to get the fed off of reducing that track of regr reducing the quantitative easing by $10 billion. >> it was plosser who said he wanted the fed to be done with quantitative easing by the time the unemployment rate has 6% -- i saw a headline of him

. >> >>> atlanta fed president dennis lockhart says he's not surprised about a sell-off but the dip is for investors. joining us now, david bianco, chief equity strategist for deutsche bank. we also have mark patterson. where do you think that does for europe and the global markets? people were expecting a cut maybe this time around. >> yes. we think that more on the policy front that will help europe grow. europe is stable. europe is growing. the uss growing. these things i think are well known and priced into the u.s. equity market. the whole focus is on the emerging parts of the world economy. and everything from turkey to china, that's the focus of investors, trying to figure out how much exposure the s&p has in terms of its current earnings and growth potential. i think what it comes down to, we were just reminded as to how monetary policy can affect everything from economy, u.s., foreign economies, currency, commodity, interest rate. i think the dip is justified. i do think the s&p is providing a fair and true point for investors. this is probably not the lowest price but very fa

dennis lockhart from the atlanta fed a moderate.the reasons i think perhaps we had a rather muted rally was charles evans from the chicago fed coming out rather strongly and saying it would be a very high hurdle for the fed to move away from tapering. i happen to think that's the right position for them to take but i think that moderated the rally that we had yesterday. let's look over in japan where everybody is watching the yen, the nikkei did have a nice move off the bottom today, 1.2% but it's down rather noticeable for the year. gee sent earnings from toyota as well as panasonic. here in the u.s. speaking of earnings, ralph lauren beat on the top line. revenues a little bit light but they raised the 2014 revenue guidance and that's all everybody cares about. estee lauder, they beat but the revenues again light. they did note strength in emerging marketsarden in line, and the north american retailers were weak during the holiday season and they are blaming that. transports are weaker than everything right now because of c.h. rob