volatility we turn to prime interest producer testing underhill who has an in depth analysis of the vix to see what do we see going on with. all the volatility index or the vix is the market's expectation of thirty day volatility or price range and it's calculated on the options on stocks of the s. and p. five hundred and as a reminder the options are the right to buy or sell at a pre-determined price and a lot of people buy these options as insurance protection which is why the vix is also known as the fear index as investors become more concerned about market losses the cost of insurance or options goes up and in this graph we have a graph of the vix index which is in green and we have a graph of the s. and p. five hundred index which is tracks s. and p. five hundred stocks now you can see that almost they almost mirror each other so when the vix is up the s. and p. is down and implied volatility one place volatility remains fairly low is during during bull markets during two thousand and seven lead up to two thousand and seven and more recently we saw one of the bull markets were goi

as the vix spiked. that's that pattern. we didn't find a bottom until two months later at the beginning of october when the s&p made a lower low, but the vix failed to make a higher high. that was the buy signal, people. it happened to us here, didn't go higher. sos of this the bottom. and then it still went lower, even though it had this. so what happened is this was your signal to buy and this was your signal to continue to buy. because the s&p was still going down. while the vix was no longer making a new high. that's what we're waiting for. we're waiting for this to happen. but it could be some time before we get there. now we have pointed out over and over again that thing that controls the stocks is the bond market. the vix measures the fear that the bonds are generating right now and that's why sebastian thinks it's important to check out the futures versus the ten-year treasury futures. earlier in the year, when the bond prices went lower, the stock market would actually rally. bonds going lower, stocks rally. that'

the same can be said for the vix. when the stock market is healthy, the vix will keep it lower.hat's what is happening over the last month and sebastian says that it's a sign that the market could be due for a downturn. in other words, the s&p is basically standing still. but volatility and fear are on the rise. it's not a good thing. it happened in 2010 and again in 2011. both times ending badly. in mid april that year, not long before the flash crash, the s&p made a low around 1200. you can see this mid april. then a week later it made another low at virtually the same level. it went higher. a hideous selloff. now it's true that the flash crash happened on may six. it did incalculable damage to the public's confidence in the market it had begun selling off before the flash crash happened. he thinks it would likely begin declining regardless of that horrible day. this is important. it has not been negative. that year the s&p bottomed out at the beginning of july. see the s&p bottoms right here. the market made a lower low. that represents a time to buy. the vix gave you a sign

that's why we're going off the chart with our vix expert.and breathes vix to figure out what this fear gauge is saying. sebastian considers it to be the most widely used to interpret. it measures the level of perceived volatility in the s&p 500 in the next 30 days. some people believe that the predictive qualities because of the way that it's calculated. it means it gives you the right to buy it at a firm price. tells you how much what good is that? according to sebastian you need to look deeper. all chart watchers believe that when a stock is hitting lower highs and lower lows, that means the share price is likely headed lower. when the stock market is healthy, the vix market will keep it lower. bin go. that's what is happening over the last month and sebastian says that it's a sign that the market could be due for a downturn. in other words, the s&p 500 is basically standing still. but volatility and fear are on the rise. happened in 2010 and again in 2011. both times ending badly. in mid april that year, not long before the flash backs th

joe bell, talk about the vix. the vix calls are best on higher volatility, and they usually spike during market down times, major market declines, and they have been spiking now, have they not? >> they definitely have. you saw the market get skiddish after the fed announcement, had a snap back rally this week, and interesting thing we noticed in the mist of the s&p 500 finding support near the former 2000-2007 peaks, market bounced a lot of vix calls purchased up by institutions of a popular @%dge, 3 to 1 -- >> what is that telling you? is that telling you we're in for more hard times? >> actually, the opposite. from a contrarian point of view -- >> wow. >> telling me the institutions are perhaps bracing for hard times. whenever you have a lot of people breaking for that, that decrease is a probability of that occurring. >> all right, back to scott here to talk about the fed. again, we heard from several fed officials that governors are trying to calm the markets meaning potentially an end to the volatility that w

that's interesting long dated premiums are they going up for the vix is very interesting and it had a pretty good move up although today i'm sure it's growing up even even further as you speak for months ago it's been fairly dormant by historical standards but that one place where i would tell those people that all along only investors they want to spend money rather than buying stocks where they were they i thought they were overpriced you're better off find a little vix advice for protection when i the correction that will happen does will make money and it picks position that should help offset the loss ben thank you so much for joining us as this is a pen as well as and we are out of here thank you so much. looking at you it's a little bit different than the bumper but joining me today political commentator sam now when it comes to agriculture the world food prize is the equivalent of the oscars and this comes from a new york times story this year the prestigious award went to the mastermind behind monsanto's big move into genetically modified crops in food terms this is like a

it's taking way too long, forget about it. >> doc, the vix.to us about the vix. >> as i said -- >> highest mark certainly of this year. >> sure. top of the show and it peaked at about 21, just shy of 21 today. the uvxy absolutely exploding. that index was up i believe 24% yesterday. uvxy, that's the pro shares double etf for that, and i think the vix with that put selling we talked about at the top of the show, judge, we've got a floor in for the near term anyway as far as how much lower we go. now, it doesn't mean when we pop to 21, 22, we won't see very fast pull backs to 20 or even 19. i expect that. but i don't think we're going to see the midteen numbers until september. >> let's kick around another area of the market where you're seeing some strength today even as we worsen a little bit on the dow. though we're pretty much holding in that down 50, down 60 range. staples. proctor & gamble is up nearly 1%. coca-cola, walmart, color rocks, costco, pepsi, philip morris, mcdonald's, those are about ten names i rattled off that are positive. >

the vix being back up around 15, 16, that is more normal. in fact, yesterday we saw the vix trade almost 18.5, close down under 17. that was an intraday swing of about 15%. so, i don't see that ending, but that is more the mainstream. that is more the norm of what we have seen over the past 10 years or so. - it's all relative. - exactly. - good to have you on the show this morning. thank you. - thanks angie. the race for summer jobs is on. the non-profit youth organization junior achievement found nearly 2/3 of teens surveyed are optimistic they'll find summer employment despite the fact that fewer than half of them have ever worked before. in our cover story, what employers are looking for. for summer seasonal work, laura ustick, general manager of superdawg drive-in restaurants, founded by her grandparents, has a short but important list of qualities she looks for when hiring. "i look for a friendly face - we have a lot of customer- interaction, obviously. i'm also looking for someone who's a quick-lerner as well." and at the top of the li

we could not break through the 200 day moving average for the vix.alculated off of july. no longer these front months. >> it comes down to positioning. people are hedged up and they feel okay. to me it makes perfect sense. >> got to move on. from the taper to the airlines. the low cost carrier ryan air finalizing a deal to buy $16 billion worth. the largest single order placed with a european airlines group. >> usually when stocks rise and this stock has risen a lot this year, what is see is the price of options, the implied volatility tends to drop. in the case of boeing it's going the other way. options are more expensive. even though the most active today were the weekly 105 calls, what might be going on here is people are looking to sell out of the stock, buy some calls in case it goes higher but i think it's expressing concern here that it's come too far too fast. the fact that it finished on the dead low in down suggests that maybe they stretched this too far. >> meryl lynch had great data. boeing rallied 20%. they announced a lot of these cont

what is interesting, we call today the vix, the vix index is definitely overbought at this point in timelied strongly this week. implied volatility especially across some of the defensive sectors put up substantially. the s&p is oversold at this point in time. short term oversold i want to stress that. if we hold at levels and stay here for next day or so. could be quite healthy and push back up to higher highs. melissa: really. you don't think this is the beginning or middle of a sign of a real correction? >> i really don't. if we hold at 1610, a lot is depend end what i'm saying a stronger jobs number on friday will give people the feeling that the fed will pare back their bond buying. which is what is driving this selloff today. i don't think we'll get that. i think people would just calm down. we'll analyze each and every data point over next two weeks al until the fed meets, fomc meets. we'll hold 1610, 1605. that will set us to rally up to higher highs. melissa: clarify, traders worried about a good jobs report on friday? that would be bad for the market. >>> yeah, that is the old

everyone is watching the vix. seems to me that level around 18 bucks is when people think it reached its short term peak and it pulls in from there. anywhere from down below 13 and 14 handle and certainly an opportunity to buy that. people are trading the overall market based off of those levels. >> what are you expecting on the close here, warren? >> from what i saw the early market close, looks slightly to the bye side. i'm expecting the market to hold here maybe climb a little bit into the bell. >> rick, back to you. i have an e-mail from a well known and well respected manager who said the following. take away from the past three weeks? japan is that qe equals calm and happy paradigm has handed. what would you make of that comment? >> i totally agree. i absolutely agree. i can't tell you with the fed or bank of japan or ecb or bank of england are going to do. but what i can tell you is even in in the managed form with huge position of treasuries owned by the federal reserve, these markets can reach technical f

i don't know ny people that make money trading off the vix.s play book is more moneyey, more money. get in the market. >> eric: more money. that's it for us. thank you for joining us. remember, we wor hard. we pay oaxes. and lawmakers continue cashing our hrd wk. while the obama administration is embroiled in three scandls, rememberelections matter. 2014 midter are coming up around the corner. register to vote and make your voice heard. see you on "the five." have a great weekend, [♪...] >> announcer: the following program isrought to you by nopalea, the anti-inflammatory wellness drink by trivita. stay tun to learn how you can receive a 32-ounce bottle of nopalea free. >> a few months ago, i had a hard time walking this hill. but toda i'm doing it pain-free. do i he a secret? you bet. and that's why i'm here today to share that secret with you. >> announcer: could a natural wellness drinkeally help ople with painful symptoms like chronic neck and back pain, swollen joints and muscle aches? or h about even sinus infections, skin disorders resp

the vix spiking below 24 percent. is this pull back the start of something much bigger, a bigger correction? yes or no? >> it most certainly is. i've been in this camp for a while. if you look around the world at other assets classes and you had your head out of the sand the last couple months volatility has ruled the day here. let me sell something. the u.s. what we've seen here in the safe haven trade, what we've seen in the s&p 500 in particular, it's been very orderly until today. to me we've gone from an environment where people have been buying dips in the u.s., u.s. investors,i the world over. we had our first close below that 50 day moving average that we have bounced on four times. it's a massive resistance level now. i would tell you that when we get back above, we may get back to 1610, maybe tomorrow morning, i think you sell these rallies, people are going to start taking profits in the u.s. and they may start looking to emerging markets that have gotten slammed. >> they're going to take profits from the u

the vix spiking by more than 20%. money rates remain at elevated levels despite talk the central bank has quietly pumped some money into the system. greece on shaky ground. coalition talks over the closure of the state -- break down. >> this story is premature. we have plenty of time. we're still having discussions with greece. provided we can reach agreement with them before the end of july, there's financing for the subsequent year. we can just go ahead. >> focus on emerging markets remains high. india's central bank as well saying it's ready to take all action needed to support the rupee. they'll be in st. petersburg to get the inside view on russia's outlook. >>> okay. welcome to the start of "worldwide exchange," the last trading day of the week. quadruple witching to get through in the states today. normally causes a little bit of volatility. we don't really want more than we had in the last 24 hours. one hour into europe, 5-4, outpacers to decliners. heavy selling yesterday. most european markets off 3% or more

i don't know many people that make money trading off the vix. uncle ben's play book is more money, more money. get in the market. >> eric: more money. that's it for us. thank you for joining us. remember, we work hard. we pay our taxes and lawmakers continue cashing in on our hard work. while the obama administration is embroiled ithree scandals, remember elections matter. 2014 midterms are coming up around the crner. register to vote and ke your voice heard. see you on "the five." have a great weekend, >> tom: witall the scandals rocking washington, there is plent of advice going on. how should the president eact. can congress really get answers and solutions. sage avice is nded. so let's ask a man who served many presidents and spent a long time inur nation's capital. we're talking with donald rumsfeld right here and right now. >>om: thanks for joining us. here at the top of the stack, the government, his government service started as a naval aviator then as a congressman. he ran the office of econom opportunity the ambassador of nato. white h

the vix index is the volatility index in the stock market. the move index is a similar index for the bond market. it was at an all-time low at the beginning of may. it was at about 48. as of last week, it got into the mid 80s. so in may, i don't think the market necessarily, from a chain-weighted option volatility index, was expecting much of a move. as these numbers came into the market and some of the rhetoric came into the market, i think it caught people a little bit behind in terms of their hedging. so i think that caused the market to rally and race a little bit to get to a point where people feel like if there is some tapering, they are a little more comfortable with where rates are. - good to have you on the show. thanks tom. - thank you. in today's cover story, several industries are taking a keen interest in the group of eight summit, from banking to oil to steel. analysts say the impact could be huge, depending on what happens after the leaders of eight powerful nations come together this week. "it's very important when the people

>> what e we see is when vix is below 20, the market feels generally stable.ve to be up, it could be down companies feel more comfortable coming to the market. we've bounced off a low. we're in the 16 1/2 range, which is very comfortable now as long as we don't continue to head higher in the vix. >> over a year past the facebook debacle. have we learned anything? are there companies that didn't come public because of that? how did it change the ipo market, do you think? >> i think the main thing that the facebook ipo taught issuers was not to come to market at a price too high for investors. it made the statement that the market is about buyers who come in and own stocks, it's not about the last round of a company's valuation because facebook really came out and pushed it to be higher than their private rounds which did not reflect market reality. >> through 2012, we saw almost half of the ipos that were priced, priced below the range. and even if you noted, actually today we have noodles which is up 100%, but take the day before where the five ipos that were

the vix, for instance, moved up to 23 not too long ago. - well, the vix spike has been one of the biggest a couple years, and especially the scale of it, coming from about 13 or 14, all the way up to 22 or so yesterday, that's a really big spike, and it shows you the market's way below where it should be, and we can easily bounce back. - thank you, good having you on the show. - thanks a lot, angie. that's it for now. next time on first business news, baby boomers will inherit $7 trillion, then lose most of the money. why it's happening, and what you can do to avoid losing a fortune. from all of us at first busines, thank you for watching, and have a good tuesday. >> announcer: the following is a paid presentation for 10 minute trainer, brought to you by beachbody. >> hi, i'm mark steines, coming to you from hollywood, california. we would all love to lose weight and get in shape, right? but the problem we have is time. look, i had all the excuses in the world: i was too busy, i was too tired, not enough time... that is, until i discovered 10 minute trainer. that's right, 10 minutes. look

i don't know many people that make money trading off the vix.en's play book is more money, more money. get in the market. >> eric: more money. that's it for us. thank you for joining us. remember, we work hard. we pay our taxes. and lawmakers continue cashing in on our hard work. while the obama administration is embroiled in three scandals, remember elections matter. 2014 midterms are coming up around the corner. register to vote and make your voice heard. see you on "the five." have a great weekend, everybody. >> it's 5:00 o'clock in new york city and this is "the five". >> the media still has questions about the justice department's seizure of fox news reporter james rosen's personal records beginning in 2010. but they are struggling to get answers. why? because the administration is avoiding, dodging and denying. here are two examples in just the last 24 hours. first, justice department is trying to explain themselves, but the meetings are largely off the record. second, the white house denies any involvement or responsibility. >> can i take

lori: the vix, that could be a significant interest. adam: nicole, what do you have for us?do not think we are in correction mode. they believe this is a psychological market every move and every piece of economic news we get related to the fed. the dow up 29, 30 names lower. every sector settling off across the board. we are approaching our session lows going into the close and that is a bearish sign. adam: leading by shares of cliffs natural resources. is that correct? nicole: financials, industrials, selling across the board. the highest levels this year, and friday monthly job reports. lori: closing out a day of decline. adam: you can see the dow down 215 points. the s&p, we fell 22 points, the nasdaq down 33 33. now here's a look at the headlines. adp report in the private sector added 135,000 jobs last month, we could than economists estimates. service sector jobs increasing by 138,000. factory jobs an on the other had fell by 6000. lori: setting us up for the may jobs report due out friday. the treasury department announcing plans to sell 30 million shares of general

the vix. the vix, even thousand the market was up the vix will end up a flat today.t tells you markets are worried. we're in serious flux. friday's numbers the nonfarm payroll will be the teller. they will tell us will we move back toward 1700 or 1600 tested? ashley: serious flux indeed. mark, thanks so much at the cme. thank you. liz: thank you, mark. if you want your investments to grow and thrive and who doesn't, then you need to listen to our next guest. he says there is one sector where investment money is going to die and you need to avoided it. ashley: it is not greece. joining us is bill snead, snead capital management. ceo and chief investment officer. bill, we're all dieing to know, where does, you know, cash go to die? tell us and why. >> well cash goes to die in the tech sector. and, the reason is, some, somebody decided somewhere in the last five to 10 years that it's very effective for a company to hoard capital far beyond what they could ever successfully dispose within the context of running or growing their business. then just leave it sitting there

vol volatility, vix continuing to rise through the summer. investors should know that that's okay. we need to digest this macro event of the fed ataper? >> how much is the recovery in the housing market predicated on all of these lower interest rates? >> i think a big part of it was, but i don't think you can ignore the fact that corporate america is in the -- >> why? because we have levitated the consumption bubble. >> we have to pay allot of of attention. >> what was the economic data? the strong piece of economic data that came out that sent yields raising so dramatically. >> unemployment. >> unemployment ticked up. >> but in the last couple of months, we have seen unemployment improve. >> there are fwo two sides. she's right, fundamentals. 15 going forward is historically cheap. i see your point, unemployment may be a fiscal problem, an monetary problem again. but that looks weak as well as gdp. as far as fundamental standpoint, maria may be right that there could be something there as well. >> rick santelli, jump in here. we still don't know if the plan gets pushed out if the

vix did set a new high for the year. it did go up a lot. i will say, listen, it's reacting on plan, it was signaling this big sell-off and now we're getting it. let's go to jay in georgia, please. >> caller: hi, cramer, how are you doing? >> what's up? >> caller: i have two positions, wells fargo and cisco. i want to know, both are bullets, which should i buy 91st? >> i would buy wells fargo over cisco. wells is really all it is is back to where it was before the great recession. but how about doing this, don't buy either yet. let them both come down. my charitable trust owns them, i have no desire to buy them here. i'll buy them lower. makes sense to me. let them go down a little. i think they can give up a little. then you can buy. think globally, invest locally. yes. not all banks do great when rates rise. like the regional banks, history says they do. "mad money" is back after the break. >>> coming up, 2q commanders. they have been the top stocks that soared during this chaotic quarter. could their resilience help you cash in for the re

vix burgers in the middle of nowhere with all due respect, think about 1863, the middle of nowhere so there are not hordes of newspaper reporters and photographers, certainly not on the confederate side so it gets overlooked. gettysburg is a huge news event and vicksburg, you can make the argument what happens at vicksburg by opening up the mississippi river to the union, that is far more important to the worse than what happens at gettysburg. you can debate that and i've heard debate about that, but it is not only does it center the confederacy in two, suddenly texas, arkansas, most of louisiana is -- you can't get there any more so all the supplies, all the food, all the manpower was coming to the confederacy coming east stopped, doesn't happen anymore. they can't cross the river, union control the river. the other thing is vicksburg is a rail hub. correll road coming from the east stops at the river to points west, things would go back and forth, that stopped because now the union army controls the railroad, they have cut it off, you can't underestimate the power of rivers and rail

i think the vix is an indicator. if you want to play that by the vxx, the etf, but i think the most concerning thing is the yields. >> i'm watching a market that's had a huge, huge run, a lot of people are saying, you know what? summer is coming, it's a slow time typically, we'll get lesser volumes that rule. i don't expect to pull money in here. here is what's mitigatinmitigat. you're going to go into earnings season where i believe expectations will come down. that's the buying opportunity. that's why i have lower exposure than i did a month ago. >> people were saying sell in may, go away. >> i didn't sell in june. sell in may is a couple years ago. now it's the next phase where it's not sell in may, it's sell in june. >> welcome to 2013. >> that's right. >> doc, you were going to say something before. >> i think a lot of it is -- how much of it is directed by the fed. is it orchestrated they want somebody who is a hawk to come out and say we don't think the economy will be impacted as much like greenspan said an o

you can look at that through the s&p vix or bond price volatility across 12,000 securities. >> so notlarming for you? >> not at all. as a matter of fact, it's probably not a bad thing. i think the other thing you ought to take away from it is driven by the combination of the fed's taper remark and basically the labor market report. i think what you're going to see here is the fed is watching this to see the reaction to this little bit of taper vernacular on the markets. >> right. >> it's a good point, but at the same time, people are looking at these markets, wondering if this is not necessarily -- or that this might actually be the start of something. danny, is this telling us not so much where we are right now br where we might be headed? >> of course. the market always does that. we were in goldilocks' land, complacency for so long. and now the intramarket relationships that have been traditional have been rearing their heads again. currencies, moving commodities markets, leading by gold, and the bond market leading the equity markets. so we're seeing that again. i think a lot of t

the vix was trading at 13 flat line. people were hedged up. that's why you never saw a 20 print in the vix. people were prepared for this thing. i think we could have massive volatility coming this summer. >> volatility was at a record low p and now it's spiked dramatically. >> i have to agree with him. because a lot of people were saying that the tapering talk wasn't going to hurt the market. if you are in the credit space you know -- >> i started my conversation by saying we had the ten year go to 225. that's significant. >> i have another quick question. $100 billion in interest payments for the federal government. if you have $340 billion that's half of the defense budget of the united states. do you think the current chairman recognizing that is going to keep this thing down for those reasons? >> there's a lot of reasons that feeds in this issue. they look at it from a holistic perspective. i don't think it's the main thing. they look at the key parameters for the economy. it's the unemployment rate, the growth rate and the inflation rate

>> i am going to watch. >> well, the vix, and i have to relate the vix, and the vix is in charge hereat procter and richardson and vix, and lit please you and me. >> all right. i will be pleased 6:00 and 11:00, and have a good weekend, buddy. >> you, too. >> and we have a lot coming up, including the two-day sellback, and we are waiting for the intern internet operator gogo to open, and after that happen, we will talk to the ceo right here. ♪ [ male announcer ] if you can't stand the heat, get off the test track. get the mercedes-benz you've been burning for at the summer event, going on now at your authorized mercedes-benz dealer. hurry, before this opportunity cools off. just by talking to a helmet. it grabbed the patient's record before we even picked him up. it found out the doctor we needed was at st. anne's. wiggle your toes. [ driver ] and it got his okay on treatment from miles away. it even pulled strings with the stoplights. my ambulance talks with smoke alarms and pilots and stadiums. but, of course, it's a good listener too. [ female announcer ] today cisco is connecting t

you have, as we said, the vix jumping.e bond sell-off -- buying happen and the yields coming down. also, by the way, have that continuing story of the yen which is strengthening versus the dollar which has been a negative sign in recent days for the u.s. stock market. one of the proxies almost on what to watch. what's the yen doing? and you get a good idea -- >> a lot of those intermarket correlations that you're referencing, relationships to each other is in flux right now. we don't know what the new correlations will be. that's why i think sitting pat and not trying to be heroic is probably the smartest course. >> it shows you how quickly things can change. everybody was falling out of bed how high yields were going to go. now may drop 2% when we get off the air. >> the 30-year fix is going to 4.7. >> mortgage rates over 4% for the first time in a year yesterday. >> there goes that theory. >> i would say the biggest surprise has been this rotation. and in this face and in the face of the correction the defenses have not

the vix, the fear index, is up about 5% today. the bank of japan not doing much.ow the dow is down one tenth of 1%. down 24%.

you are seeing the target moving to the lowest points of the day, and as i noted, the vix is up.le, thank you. dennis: in a small batch vodka maker from texas is hoping to get a leg up on the competition taking flight. titos vodka, now the exclusive vodka for all united airline flights. joining me with more on the sky high beverage is tito beverage, the aptly name found founder and master distiller of the handmade vodka. birds or tito? >> i'm bert, named after my grand dad. dennis: i've had your vodka, i'm a fan. >> thank you very much. dennis: with regard to the united airlines deal, how did you get that to bump out the better known absolute? pay them a big kick pack or charge the cheapest price? >> we paid them billions and billions of dollars, and they liked, picked them up. no, they did a tasting, and they liked titos, and so we ended up getting the slide. it was a cool deal. dennis: when an alcohol brand does this, they get money from the airline rather than paying money to the airline? it's a good promotional platform to a captive audience. >> yeah, it's not a big moneymake

at the height of the financial crisis, vix was up to 80. right now at 20. but to see the jump shows just how much investors are spooked by what ben bernanke said last week. >> and we should definitely not mistake that big spike for good things. it's a big spike of bad is what that is. >> exactly. >> alison kosik, keep an eye on things for us. >>> got big top stories we're following for you you. nelson mandela's can ondition h taken a turn for the worse. he's been hospitalized for moths of this month. but now he's list this had critical condition. fael members a family members are keeping vigil. >>> president obama is planning a big push for immigration rae form. the president is scheduled to meet with business leaders who have thee form. the president is scheduled to meet with business leaders who have thereform. the president is scheduled to meet with business leaders who have the -- who have immigrated to the united states. and then the senate vote is expected to happen later this afternoon. that amendment by the way would beef up the border security port

the vix shows, it has been to the downside after we've seen it jumping. this is big deal.s waiting to seeein the 2:00 p.m. hour, basically next 45 minutes, hour 1/2. that will be the action. and the question is which way will the market move? if they taper the bond-buying, is that good news or bad news? they're so gung-ho on the economy. are they taking away the kool-aid. you have to see how people will interpret this this is exciting. lori: that is a such a great point f they do taper means the economy is in good shape. that is key point, nicole. thanks for bringing it to us. >>> let's head back to adam at ups international air hub and his very special guest. >> lori, thank you very much. scott davis is a former chaarman of the federal reserve bank of atlanta. a member of the president'ss3 export committee. he is also a member of the fix the debt commission. there is a great deal this man has accomplished but most important he is the ceo of united parcel service and joins us for exclusive interview now. he is live. i'm at world port in louisville. thanks for being with us

one other thing we haven't highlighted the vix recently. level and we are back it that first time in 2013 that we have seen 20 on the vix. >> you have to expect that to continue tomorrow with the expiration coming up. >> yes, ma'am. that will bring volatility. talking about, this -- you call this while we were in the commercial, a wash out here. >> yeah. it is, yeah. >> for every 20 stocks going down, only one is going up. >> internals are bad today. awful today. as old southern phrase, they took everything out to the wood shed today. one of those things. this is healthy for a market. if it reacts to the fed statement and when chairman bernanke was going to do, let's clear this out and reevaluate n inside of stocks and move on from there. we tell you, we caught the market. it continued to trade down. quite substantially. so short term, this is an excellent buying opportunity. i'm waiting for the crowd to come back in here. >> that's the issue though. is this the wash-out. >> we have taken key support levels. we actually went through the apr

i'm looking at the chart of the vix. way back to july of 2011, we got all the way up to 48 on the vix. we're above 20 today after, i guess, a big move -- oh, there it is. you can see that it's been -- we've taken out those april and march. if we go to a longer term one that goes weekly, we're still below on that -- it's lower lows. and lower highs. and it hasn't been violated yet if we went on a longer term vix story. >> if you looked back at the last time you had something like this it was around all that talk in washington, what they were going to do. >> go back to 2011. there it is. go back further. even this most recent high is still below the high in '13. which is below the high in '12. which is below the high in '11. the lows kept getting lower. if it were to go above a couple highs in '12 and '13 you might think we were back to the races in volatility. >> there is some volatility back in the market. it's just that we're coming off pretty low levels. for people watching today, there are two numbers to kind of keep

investors that i'm in touch with are buying vix puts, vix calls and s&p puts and looking to protect the they've made, and look at their portfolio and say how do i best protect myself. caution is key. >> we'll leave it there. gentlemen, thank you very much. we'll keep watching. appreciate it. >>> pumping up profits in style. up next, the ceo of ult ultra high-end shoemaker manolo ambulan in blah nick. w .. 123450 123450 123450 nown someone who's lived well into their 90s. and that's a great thing. to enjoy all of these years. ♪ we know some people are never happy with the way things are. to enjat honda, these years. and are always dreaming of how they could be. smarter, simpler, how-on-earth-does-it-do-that... er. and they make it that way. because things can always be better. we like those people. they think like us. introducing the best civic sedan yet. made possible by honda. 8 . it's a brand new start. your chance to rise and shine. with centurylink as your trusted technology partner, you can do just that. with our visionary cloud infrastructure, global broadband network and custom c

the vix in yesterday's trading session saw enormous range. today it's up another 5% on the trading session, and that's off the best levels for the vix of the day. the dollar, which had swings of almost 3% against some of the major currencies yesterday is down a third of 5% rig-- of a percent, hitting its lowest level since february 20th. bob pisani joins me on the floor of the new york stock exchange. yesterday we saw legendary moves in the currency market and saw big moves on the yield curve as well. what's wall street watching today? >> once again back to the currency issue. it's true, the dollar has been weak against all the major currencies for a number of days now but the one that matters is the yen. that's because the carry trade is there. there's huge leverage in it, and it's unwinding. down the don't believe me. this is a look at chart. dow industrials, dollar/yen. the green line moving down means the yen is strengthening, bad news for the carry trade and generally for stocks. can you see it's been moving in tandem all throughout the

so the only way the vxx and the vix is going to go up is if the market gets absolutely crushed and rolls over. we are already up 45 points from 1600. we're trading 1647. so i don't really think the vxx can go above that $21.40, which is the recent highs. - it's good to have you on the show. thank you, andrew. - thank you. that's a wrap for now. coming up tomorrow, predictions on how muni bonds are set to perform. plus, will any of the films opening at the box off this weekend have the power to stop superman? from all of us at first business, thank you for watching! >> announcer: the following is a paid presentation for the nuwave oven pro, brought to you by the makers of the nuwave precision induction cooktop. [♪.. professional chefs create great-tasting meals from years of experience and by using professional equipment. and now you can too, with the nuwave oven pro, the number-one countertop oven in america! no more defrosting or preheating that giant oven-- the nuwave cooks all your meals faster, better, healthier and easier, guaranteed. the nuwave oven is not a microwave oven, but use

she was showing me earlier a correlation between the dow and the vix. you can do today or for the last month, or whatever it is. go ahead. the volatility traders -- look at this. this is today. when the dow was down 248 points, the vix was at 21. and it's come all the way back. we're down just 57 points right now. mirror image today. mirror image. thank you, guys. >> thanks, everybody. >> see you later. heading toward the close, 50 minutes left. what a crazy day we've got going here so far. the dow was down 248. we're down 57 points. what do you think? >> well, listen, i think this market wants to bounce. i don't know that it goes positive by the close. part of this is because of what's going on in china. >> yes, it is. >> more pain in china. more pain in the u.s. markets. what companies are most at risk to this global downturn, and how you should play it. that's next. >>> also, buckle up. this is the last week of the quarter. many traders think we're in for a wild ride, not just today, but the rest of the week. we'll talk to traders at the major exchan

a look at the vix and we'll talk about that in just a second. the last week it was up 8%, and that brings us to bob pisani who also tracks the volatility. >> we do, and while it's been up since may 22nd when mr. bernanke gave his congressional testimony, the important thing is steady as she goes. the last few days, real found a floor. look at the dow industrials. in a rafnlg the whole month between 15,000 and 15,250 roughly. today we've been 160 points up since right at the open so there's your new sort of narrow short-term range. 3-1 advancing to declining stocks today, and the right kind of stocks run. what do i mean by that? stocks that you want to own in the growth environment, financials, for example, housing stocks are on the upside, the itb on the upside. tyler mentioned the home builder sentiment. the best we've seen in 2006 and also seen a nice move up in some of the energy stocks as well. bond etfs, those stocks as well. a nice move up. there's the bond etf, but the bottom line is for the most part yields are moving down and have been

as for the vix, the fear index ticking lower today, but recently because of the volatility that i just mentioned, it spiked to its highest level of the year. a lot of people want to know whether the volatility we're seeing now will continue into the next half of the year. joining us kenny polcari, a cnbc market analyst and michael yosikami, ceo and cnbc contributor. nice to have you here. kenny, abigail doolittle said volatility is one of the reasons why she sees looking for a 25% to 35% correction here. do you think the second half is going to be as volatile as some people are saying it will be? >> i think it's going to be volatile. i don't necessarily think it will be so volatile that we see a correction of that magnitude. i think we'll continue to see volatility as we move through the summer and into the fall, but i do suspect that the fall is going to be a better half. >> all right. michael, do you agree with that, or no? >> i agree. i think volatility is -- you know, i think volatility actually is here to stay. you know, even thought vix calls down for certain periods of time, may

i believe the vix at 22. in 2010 or '11 when the vix was in the high 40s, let alone 2008 when it hit 90, so far this has been a very mild correction. we have not seen real panic. i'm not predicting a 2008-type event, but i think you will see more volatility in q3, and while investors wants to remain long equities, they want to be prepared for more volatility than we had the first part of the year. >> do you guys agree? >> i do. i think part of the reason. >> we've seen the volatility over the past couple weeks really in response to no underlying fundamental crisis is the vix touched a six or seven-year low in march of this year, 1130 if memory serves. and that says to me there was widespread complacency in the market. doesn't mean something is going to go wrong, but it does imply if something does go wrong, the fed, china, whatever it is, the market reaction is exaggerated. >> look at that even as we have been through this correction, the dow for today is almost turning positive. we're just a percentage -- co