charles schwab chief investment strategist, liz ann sonders and herman cain. we need the pulse from main street. that is why herman is here. how americans are coping with the dramatic swings. first go to the floors of cme and new york stock exchange. nicole, dow and and s&p out of correction territory. of course that could change on monday. >> no doubt. you hit the nail on the head, volatility feels like it is here to stay. we had more than 1000-point swing top to bottom today. we ended up 331 points. we had biggest selloff in points twice this week with over 1000 point-selloff. we had a lot of volatility for the week. dow, nasdaq, s&p, are down 5%. as you noted out of correction territory. 23,955 would have been the correction territory. we've had such an incredible run. look at the vix, the fear index. that jumped to 50 earlier in the week. that is the highest since the "flash crash" in 2015. but today it finished down but had been around 40. so we've seen a lot of volatility there. people that were betting on the downside in very calm market this year got s

for more on all this, we turn to liz anne sonders of charles schwab. z anne, thank you for j.oining what happened? >> i think it was a number of things. you pointed out the the year over year increase in hourly earngs jumpe 10.9%, a en-year yield in treasure a blrough 2.8 on the up side. the last time we had a pullback in the market a week or so ago it was when ten-year yields went ove 2.7. the flavor this year is different where we're starting to see ilation, develop traction and concerned that will result in titer monetary policy, but it's a 2% drop. >> woodruff: right, we have to eep that in mind. some people have been talking about a correction, a bubble in the market. could that be what's going on here? no, i don't think it's bubble. what i think was one of the problems that may have led to a bigger decline than maybe the fundamental suggested was appropriate is sentiment got quite a bit frothy. after nine years of skepticism about this bull market, in the last couple of months we noticed a real significant retur particularly in individual investor

we have literally 25 top market voice, liz ann sonders, ward mccarthy, a ton of traders.d happen in the final hour. trish: we're up 178 right now. it was 120 as we began the discussion. it is a wild day, an exciting day. i would rather see it go up than down. hopefully the upside continues as we watch you into the last hour of trading. don't forget, everyone, tune in just ten minutes. we'll be right back. i have more on these markets. do not go anywhere or you could miss it. up 165. one . : . >> 90 see this. up 203 points. this was a wild day, while market. we had been down almost 600 points and we've just been going back and forth. now we are in positive territor territory. let's hope it stays this way. i'm back with shelby holliday and kimberly fox. what's going on? are people struggling with do i get in, do i get out? for every person selling, there seems to be someone saying all right, we've reached a level uncomfortable buying. >> this is normal. we have had almost eight years of upmarket so it's very normal that were having this pullback. when i tell my clients, 5 -

liz ann sonders, chief investment strategist at charles schwab. dow,s another peek at the s&p 500, 10 year treasuries, and the vix, to get you a sense of what we are seeing now. the vix down by 1.2%. .75% higher for the s&p 500, a little over half a percent for the dow jones. this feels like the end of a very long week. plenty of time to go. andlet: tech, financials, utilities leading the way, energy and staples are the decliners. julia: we have the 10 year yield now lower by 2.83%, the level on the 10 year yield their. there is plenty more on the markets to come. scarlet: this is bloomberg. it is now time for the bloomberg business flash, a look at some of the biggest business stories in the news right now. moody's says the u.s.'s long-term aaa rating could face downward pressure due to slowing national debt and whiting budget doesn't visit -- deficit. this will a road the u.s.'s fiscal position without further cost reduction measures. this comes as a two-year budget agreement was signed to raise federal spending by $300 billion. leanne air john

liz ann sonders is their chief strategist. glad to have you back on. >> thank you. neil: i don't know what schwab recommends, but you as an individual and pretty darn good investor think of that, these things are compounding the volatility and best not to touch. >> it's interesting, our financial consultants are actually not even allowed to recommend any of these inverse or leveraged exchange traded products. in fact, we have actively, since the inception of many of these have told our clients, you probably want to stay away from them, because of the risk associated with it. we sent a letter in december out to those investors we saw had exposure to some of these things and highlighting the warnings and many of these were page 195 in the perspective. we've always been against leverage and inverse exchange traded products. neil: let's step back a little bit. in six trading days we got our 10% correction. we'd had big corrections in a single day, october 19th, 1987 when the dow lost a quarter of its value so we have a history of seeing startling developments but this w

more on that, liz ann sonders -- with liz ann sonders. this is bloomberg. ♪ ♪ u.s.cks were on the rebound after bouncing off technical support levels after a second day of gains. now futures are back on the back foot. it raises the issue of the future of the equity market. it does it belong to the bulls of the bears? >> this is no big deal and we should expect probably more of these short sharp pullbacks from time to time. >> fundamentals are still supported. we think we have a big shift in the volatility regime change. we are just not seeing that from what we got. it's a buying opportunity in a situation where you are having a supply and demand dynamic, it's possible bond yields are going to go up, stocks are gone to go --n, and that the economy as going to go down, and that the economy as a whole is going to slow. >> i think it's a sign that the days of boom, boom equities are over and we've now got more risk in there. technical, not fundamental. the only way the equity market stops growing is if growth disappoints because this is where people are complacent. peop