now, i haven't been a fan of vera bradley.n't like the fashion aspect, the hit or miss element of the business. the handbag line, a big one. vera bradley talked about merchandise challenges, which in my view don't happen if you have the right assortment. they talked about a weak spring for their apparel and accessories, ascena, i didn't think it would be this bad. dress barn is down. you put these three together, you got a gloomy picture of what is out there with many shapes and sizes people spending less. you couple that with dollar general, you get a sense may was a very weak month. the huge increase in interest rates on a percentage basis is happening at just the wrong time. plus all the jabbering fed head guys. you combine higher rates with less business. it wasn't all bad. we had a hard goods retailer cons report god numbers. they sell home furnishings, appliances, they were up today. normally, it would be important to the offset vera bradley and ascena, conn's trend is in a grain of salt. when i put it together, i come b

on the other hand, we're also going to hear from vera bradley, which reported terrible numbers. maybe we can find out the real story from these conference presentations. here's also something to keep an eye on that we normally don't care about. the federal budget deficit. i will expect a blow-out number. the blow-out has to do with earnings. this is a number that's going to show less spending and much more being taken in in taxes. that in itself could cause interest rates to go lower, and stocks to go higher because of the relationship between bonds and stocks. where stocks go down as yields go higher and vice versa. thursday began initial jobless claims. i often found that the weekly jobless number, the following week after the nonfarm pay roles is a big deal because it either verifies or undercuts the big bad event that you thought was in the past really isn't. we have to re-examine friday the number we got today when we see that thursday number. i think it will be fine, but i can't diminish its importance because someone always says, you know what, that rearview -- that numbe

vera bradley, the sassy handbag maker, is lowering its sales outlook. also, the ceo is resigning. shares fell 8%. jp morgan reportedly has sewer stress. the bank could take a $1.6 billion loss from a sewer deal in jefferson county, alabama, that lead to the largest municipal bankruptcy in the nation. and the tsa reportedly is cutting plans to allow knives onboard flights. there's the sound of our opening bell. todd horwitz of average joe options joins us this morning for a closer look at the market. good morning to you. - good morning. - and is it "look out below 15,000" for investors? - you know, i have to tell you, it looked a couple weeks ago when we made that key reversal on may 22nd, it looked like the top was in, and it certainly appears like it now. i think below 15,000 in the dow, i think below 1600 in the s&p. you want to be out or short this market. i don't think you want to bring any new money to the table here yet. - aren't there some buying opportunities here? come on. you're a trader. - i don't think so. i think if you're a trader, you might look for a quick strike,

names like the gap and guess with all up arrows, vera bradley, sears up nearly 5%. liz: okay. they're on the rise following a raterrings upgrade. >> reporter: right, and we know that it was the dialogue, and -- the dog, and there were so many questions, but they looked closely at the z10 and the q10, they liked it, and they upped their outlook. david: of course, barnes & noble was going n the opposite direction with news that microsoft may not be interested in the nook, right? >> reporter: right. and with that news, we've heard the back and forth every headline moves barnes & noble. this one, no interest, stock was down. liz: the sweet sound of the closing bell on a day where the markets just blew out the ceiling. look at the dow jones industrials now, 15,175. we lost 20 points there. david: that's still pretty good. 180 ain't bad. liz: right. but when you look at the nasdaq, a nice gain of 44 points so, obviously, technology coming along for the ride. small and mid caps jumping 1.75%. here's a look at your front page headlines. the labor department reporting that applications

something that shows vera bradley may be outliers.is a nationwide chain with a real good happenedle on business these three other companies don't have. we will hear from the power xaen company in every major department store that could provide continued positive momentum. fifth, we need to see some stability in commoditys to verify things around the world are getting better, not worse. i rely on iron ore, corner, alluminum and lumber as signs of deceleration. lumber just started advancing. that's a terrific sign, be i the way, others need to follow. finally, we saw our leadership groums come back. the aro space and the latter the sign of the market. if those continue to build on today's advance, we have a fighting chance to say we have seen the bottom and worst case scenario is off the table. that's six teams to watch for. unfortunately, you didn't need all six to go right. if we're going to take it up to levels where it began. i'd say three out of six we saw yesterday was, indeed, a worst bottom. means point blank the worst is over.

vera bradley, francesca, all bad. these are apparel companies that are really in the middle. the middle -- it's just not doing that well in this country. they had a tough month in may. when i come back to the fundamentals rather than the charts -- charts aren't so good -- the fundamentals are kind of confirming a lot of weakness that i see. it just makes me worry. >> most people who are instructive on this market would argue earrings are going to be just fine and in fact let's stop getting so excited about a 2% 10-year. put it in context, please, everybody. this is an air pocket, not a down trend. >> okay. we are down almost 5% from the high. that matters. but we don't all -- we're not trading in unison. real estate investment trusts started to go down. i think they are trying to bottom. they've come down tremendously. the generals have just started getting shot. we just started shooting boeing. we just took down the biotechs earlier this week. you got to let everything roll over and some bounce before, but i don't like the take yet. >> streaks getting broken this week. tuesd

costs hitting the profit at what is described on this teleprompter as the luxury hand bag maker, vera bradleydbag maker? is that how we've described them these days. >> i've never heard of them. not my handbag maker. stuart: i thought you'd know the name. look at the stock, down 11%. the handbags are out, we understand. and by the way, what's the ceo doing there? is he retiring? yeah, the ceo is leaving that one. okay. as we've mentioned before, the left wing british newspaper, the guardian, reporting that verizon is handing over millions of customer phone records to the nsa. no impact on verizon, this is a political and security story, it's not a financial story and verizon is still up 4. and this from the most prominent banker in american, jamie dimon, he says as interest rates go back to normal, thing that's going to happen, the market is, quote, going to be scary, and it's going to be kind of volatile. i want to bring in keith fitz gerald from portland for your reaction to what mr. dimon had to say. >> i think he's talking a book, and sent out to shareholders we expect a profit of 5 billi