tv Markets Now FOX Business June 20, 2013 1:00pm-3:01pm EDT
this is painful today. nicole: it is tough. it is tough for all those folks that were saying we are on our way to 16,000. there are a couple of things that we are watching. another 200.2 the downside. back-to-back. concerns about tapering. concerns about china. that really has been front and center. very strong dollar. no safe havens to speak of. gold is down $83. we are also watching the vix, the fear index very closely. remember when it was at 12? 18.5. here are some data loggers for you. whether it is disney or intel or coca-cola or financials like bank of america.
ten have been 200 points links. volatility has been key. back to you. tracy: thank you. >> fox business contributor phil flynn of price futures group is in the pits of the cme. goal comes to its lowest level in nearly three years. where will we make some money today? >> not on the long side, that is for sure. we took out some major support today on this number. first of all, the fed. that is the big elephant in the room. we are talking about tapering. we are talking about a rising dollar. that will put downward pressure on oil. china has been a major physical buyer for the gold market.
with credit tightening, it makes you wonder how much more money they will have available. this week, there may not be a lot. the other thing you have to look at today is today's economic data. we forgot about it, but it is so strong. @ou look at the existing home sales. they turn out to be bearish for gold because it is bullish for the dollar. >> crude prices are sliding back below $96. who do we blame? >> my mother-in-law. no, it is not her. don't tell her that. listen, we should be thinking the chinese, i guess. we want lower oil prices. we should be thanking the traders that have this unbelievable notion that the fed will continue to print and did not listen to what the fed said. i could not believe yesterday where we were pushing highs
before the fed meeting. we are seeing supplies here record high. the feds will be taking away the punch bowl. that will take the hot money out of these emerging markets. what are they looking at? they were looking at the wrong thing. that is why we are seeing these oil prices down so dramatically. tracy: with the dow down over 200 points right now, where should you be putting your money? no matter person to ask but david. >> what bernanke said yesterday it was not terribly different than what you said before congress on may 22.
he said maybe by the end of this year we will start. maybe by the end of next year we will be done. in the long run, i think this will probably be a little bit of a buying opportunity. i think, eventually, this will wash out. tracy: we have seen the way that this bad movie and. dagen. qe1 ended. markets will eventually sell. qe ends and s&p drops about 18%. i guess everyone is anticipating the drop. to your point, dave buying opportunity. >> i am watching to see if the market can hold the moving day average. so far, it has. we have tested this level several times in the last two months. each time it has held. if it does, it will be a buying opportunity, in my opinion.
the difference this time around, the economy is better, housing is better, the labor market is better. this time around, i think it is a little different, a little bit better fundamental backdrop. tracy: let's talk about how we can position our bonds for it. >> it is hard to know exactly where this will settle out. the move of two to 40 has been pretty dramatic. we may have already covered a lot of the ground we will cover. on the equity side, i think you have to be overweighted in the u.s. still. i like the domestics of the goals. we are the only major market in
the world that is growing and i think stocks here are still reasonably priced. tracy: i know you also like tech. >> the problem with tech is you have to be a little discriminating because as a factor, it derives more of its product overseas than ever. the tech sector, in my view, again, is pretty reasonably valued. tracy: we have to talk about commodities. gold is down. event gold typically down this time of year? >> i would not be getting into gold. i think gold is being washed out as a result of the fed's projections. the rest of the complex, i think is really being driven by the week is in china and in
combination with a stronger dollar. i do not like commodities here. i think the whole sector will remain under pressure for a while. i would avoid it. tracy: if we have economic data that starts to get better, doesn't that build a case for the need of these commodities? >> in the domestic market, if you think about final product demand, commodity as an input is not that big of a component. i would like to see a little more strength out of china before i really feel better about buying into commodities. having said that, they are cheap. there is no question about that. i think it will be a while before you get rewarded for that. tracy: david joy, it is always about china lately. thank you very much, sir. >> you're welcome.
ashley: the national security agency asking congress to enact laws to protect internet and telecom companies from lawsuits when they do cyber spying for the government. elizabeth macdonald is here. liz: a controversial bill right now that has passed the house. it has stalled in the senate. the nsa wants this bill passed because it would give immunity to internet companies that help in cyber spying. of course, this is all subject to definition. the white house is saying wait a second. the white house is saying it is concerned about the broad scope of liability limitations. they basically want to safeguard privacy and civil liberties. here is senator chandler sayings any bill that we passed must
contain full protection. >> good for the companies, perhaps, if this gets through. don't we have the right to be let alone? >> essentially, this bill that is passed the house, does not require companies to take reasonable steps to remove irrelevant personal information. a company could unwittingly give out your personal information to companies engaged in cyber spying. the companies would then give it to the government. this law has been around since 2011. the nsa is really pushing for it. it could happen. tracy: good stuff. we have a huge selloff today. we have a winner for you.
we will head to the new york stock exchange for what is giving gamers excited about game stop today. timothy geithner, janet yellen in concert at central park. no -- [ laughter ] just a few of the names to replace bernanke. as we head to break, take a look at what is happening with metals. ♪ my mantra?
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i know for me, personally, one of my things i have been really focused on is the global economy. companies that are growing in this country that have pricing power in this country. i think you want to look at them. mcdonald, for instance, i think that is a relatively solid that for someone out there. also, these pullbacks in general. we make a big deal out of it because they are scary when it happens. they are part of the investing process. >> i know some people like to look at dividend yield. is that something we should be looking at right now? >> unless you are in and extraordinarily questionable. , i do not think the safety of yields will make better with the overall stock. it does not have to have a four or 5% dividend yield.
these debt loads will cost a lot of money. you talk about the dirty fingernail rally. do you still see that going on? charles: absolutely. i am going to be interested to see what happens in the next week or so. president obama will probably be more forceful. i think when it comes to stopping fracking and things like that, despite the facttthat it is very popular with his core base, it would be crazy to her that at all. that is one of the areas we have been promised rebound. we will see. tracy: a big old punching bag. >> it is just like new york.
really? you could create a couple hundred jobs. income for the state and still, you want to do more exploring. it is toss. i just find it always amazes that if indeed the fed is right in the economy is getting better that people would want to sell stocks and rather by. tracy: it happens every single time. charles payne, thank you. >> time to go back to the floor of the new york stock exchange. nicole petallides is watching what is happening to your investments. peter: reason that we love charles payne. good companies going on sale. you cannot say that everything is not worth buying. you are seeing broad-based selling. these are the times that you pick up the companies that you love the most. many investors are still very
worried. they have had back-to-back moves with 200-point losses two days in a row. that makes people nervous. i want to take a look at game stop. at the highest level today since 2008. this is on the news that a new microsoft xbox one. you will be able to use the old games. that is a big deal. that is a big business. back to you. tracy: thank you, nicole. up next, lou dobbs is here with his report card for bernanke's performance in reaction to today's selloff. >> take a look at how the dollar is strengthening today. ♪
the changes could clear the way for a vote within days. the afghan government is moving closer to joining peace talks with the taliban. the president is now willing to join negotiations if the u.s. follows bruce with promises he said were made by secretary of state john kerry. this development comes one day after karzai rejects talks. tropical storm barry has made landfall in mexico. the second tropical storm of the season came ashore. it is heading inland ringing the threat of deadly flash floods and mudslides. those are your news headlines on the fox business network. back now to tracy and adam. >> thank you very much. gold prices sliding and the bond market slumping.
lou dobbs joins us now with his reaction to yesterday's statement from chairman bernanke lou: i guess where we ought to start is audio, or nagy. presumably, trying to the claire fed policy. i think he added to the confusion just a bit. his perspective, his anticipation that we will see continue of strengthening and the economy. aside from the fact that everyone went nuts and did not like what he said. i think this is a good clearing right now. i know that that may start strange to some people.
we are seeing punishment. that is, to me, a clearing. a healthy thing that we are watching. i do not think it will persist more than a few days. we may see a three-4% pause here. we are looking at an economy that is strengthening. we are going into earnings season. we will see things pick up next week. we will see some pretty good performances from the s&p 500, as we have for some time now. i think there is some -- because of the confusion jammed up by the federal reserve. tracy: you think that the man who has been printing the free money is going away? lou: he was indispensable in till he wasn't.
we hear this blather in the business press. another way to write about our financial system. if there is any part of the country that is in government, that is not a personality driven enterprise, it is certainly that of being the fed chairman working cooperatively with the banks and the fed. >> how much of this is just the computers reading into the fed statement and looking at keywords and triggering the cell. >> i do not know how much of this we can blame on algorithms. i do think that what we are watching is a dumb system reacting. we have seen volume pick up a little bit here.
about 20% as we went into the meeting yesterday. the fools who think they actually know what will be happening in the fourth quarter of 2013, i am not suggesting there are any at the federal reserve, but these markets are working right now. you are watching the people who lack conviction move out of the market. you are watching those who have a clear outlook and a more positive outlook move into the market. this is a clearing, it is a happy thing. what was his grade for yesterday's performance? lou: president. how do you grade a man who has done as well aa he has? he has led the federal reserve through its most crisis ridden.
in its history. tracy: do you believe that he has the ability to unwind this now? lou: does he? no, but the system does. what you are watching, over in the bond market, we are watching prices fall and yields rise. interest rates will be moving higher. there will have to be a further clearing as we move into a new era. but, this has the potential to be a game changer, if you will and which you can see a lot of people get shaken out of the market there. it could be some ugly retracements as we see the market move from a bull market to three decades duration to a newly arrived memory.
>> lou dobbs, thank you. my savings account seems to be smiling. we will see you a little bit later. you can see lou dobbs every day at this time, of course. tonight, you can cast congressman randy forbes. tracy: bernanke remains optimistic about the housing recovery. up next, who does the market belong to now? we will find out. >> what banks need to do to avoid a recession. here at home, we have a look at the dow 34 you. it is not pretty. ♪ friday night, buddy.
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risk includes possible loss of principal. tracy: it is bottom of the hour. time for stocks as we do every 15 minutes. we head to nicole petallides on the floor of the exchange. s&p 500 testing that key support level, nicole. >> right that is something we've been noting. art cashin from ubs and senior editor charlie brady. 1598 is the key support. we traded as low as 1599. the fact we've gone down there and tested and came up is key for traders. that is key someone like art cashin, if you do that again that is a double-bottom. obviously that is a good sign. if you break through it, that you may have the algos trick ear lot of selling. that is really key to watch that level. watching rite aid very closely. they came out with quarterly
numbers. you see the stock is down over 6%. weak earnings outlook. they have had a stellar year. doubled over 100% gain. back to you. tracy: thank you. adam: nicole petallides, thank you very much. some positive housing data out today. may existing home sales are up more than 4%, to the highest we've seen in more than three years. mortgage rates fell for the first time in almost two months. don't hold your breath by the way with 30-year at 3.93%, this follows federal reserve chairman ben bernanke saying he remains positive about the housing sector but is all of this enough to combat concern over rising interest rates? there is no one bettory ask than drew kessler, vice president of m & t bank. when you want to talk about housing and mortgages you want to talk to drew. >> good to be here. adam: sellers market, buyers market what is helping right now? >> i see this as a neutral
market. i was speaking to a colleague that runs a sales firm, what do you think is it a buyers market or sellers market, you know what the answer was? yes. that's where is is. from last couple years where you get really great deals to find things out with the scarcity of inventory, quality inventory, sellers who have something of quality to sell are demanding a little bit after premium for it. adam: if i were a buyer or potentially a buyer i would be afraid even if a neutral market. what i keep hearing on fox birks interest rates will go up and might keep me from going into the market. is that a mistake? >> i look complete opposite. if you don't jump in now who knows where it will be a six months or a year from now. rates will happen overtime. the thought values will rise with it as well. a year from now potentially higher interest rates and real estate price values and buying for something higher you could have had cheaper today. adam: talk about the interest rates and why people like me who are quick to panic.
>> sure. adam: i hear the 10-year treasury the yield gone up 50 basis points almost overnight, i think interest rates are going to rise with that, but how great are interest rates going to rise? they're still at historic lows. >> this is all about the psyche. at the end of the day money is so cheap. at 4% if you compare to years past or decade past you're borrowing money basically for nothing. compared to where we were a month ago, yes it has gone up. for roughly a $200,000 mortgage, every half a percent will raise a payment by $50,000 a month that is significant but the hope would thought that $50 would not make-or-break anybody. adam: whether they be buyers or sellers in a neutral market someone always has the advantage. who has the advantage? >> based on the current inventory out there sellers have slight advantage. if they have something good on the market i think multiple buyers will bid on the property. adam: any advice for people who want to avoided a bidding war if sellers have advantage?
places like california where you hear about all-cash deals. how do you enter into a market like that and have a competitive chance? >> i think terms are the biggest things. have your ducks in a row. assuming you're not paying cash for a property. have the preapproval for a mortgage, not going to seek it after you go find a place. know what the current history looks like now. be prepared ahead of time. that you walk into the front door so you know what is going on. adam: you're a guest on fox business frequently. say we have you back here a year from today. someone decided to wait this out. are they going to regret a year from today? >> i believe they're going to regret it. we know rates will be rising. what they will go to who knows. but they're definitely moving up. i believe home values increase. if you have those two factors at play, how could now not be a perfect time compared to a year from nowany, drew kessler, m & t bank. back to you. >> like to see positive news in housing. today's focus is on the fed but we're also keeping an eye out on
china. a credit crunch is totally spreading out there and the rate banks lend each other money spiked overnight that is not so unusual, granted but this time it is different because china's central bank isn't doing anything to boost liquidity. basically the people's bank of china is trying to send a message to banks get their act together, come on now. the fed also could play a role here. with so much money being printed, cash is flying into the emerging markets. but with ben bernanke hinting the bond buying could start winding down this year there are worries that the money could be pulled out. on top of all this, we've got more weak economic data sending stocks lower in china overnight. the shanghai composite tumbled nearly 3% to its lowest level in six months. really interesting, adam, i think that what we're doing here is totally affecting what is happening over there and decisions they're making. adam: the decisions they're making but there is a great book about china, red capitalism, which talks how their banking system, essentially you can't trust a lot of things.
collapses periodically. we've been through that before. tracy: sure. adam: we've experienced it. tracy: once or twice. adam: moving ahead with just over seven months left in federal reserve chairman bernanke's firm a lot of people are floating the name janet yellen as a replacement. charlie gasparino will tell us if that job is hers to lose. tracy: a week away from the fourth of july. are you ready to hit the road. with independence day falling on thursday, we'll look at the impact on travelers. i'm traveling to work the next day. first let's look at ten and 30-year treasurys as we head out to break. 10-year up seven basis points. your 30-year is moving as well. ten basis points higher. 3.52%. we'll be right back. . would you mind if i go ahead of you? instead we had someone go ahead of him and win fiy thousand dollars. congratulations you are our one millionth customer.
>> i'm jo ling kent with your fox business brief. eastman kodak has secured financing with several major banks to fund operations when it emerges from bankruptcy. kodak has reached deals with jpmorgan, bank of america, merrill lynch, and barclays for debt financing up to $895 million. facebook announcing it is adding video capabilities to photo sharing app instagram. users post videos up to 15 seconds long. some suggest that is a direct move to with arrive val. activist investor carl icahn is the latest to join twitter.
tracy: the markets are focusing on ben bernanke's signals regarding future fed policy. the real story is that ben bernanke, really whoever replaces him as the chair of the federal reserve may not be able to afford any major policy change. fox business senior correspondent charlie gasparino is here with all that. >> i want to make it clear to the world they will not pick me. tracy: i was rooting for you. >> fox business network learned i'm not in the running. one of the promos looked like i
was the guy. don't ask mae. i got two people, one person in the hallway and another person tweeted me or e-mailed me. tracy: really? >> in any event who will be the replacement for bernanke we'll get into the politics of this because i think it faces nating the way president obama unveiled it two days ago in the interview with charlie rose, who will be the new fed chairman or chairperson. i think it will be a chairwoman. good chance it will not be tim geithner. from what i understand, former treasury secretary, former president of the new york fed told people on wall street he is not interested in the job of fed chairman. he is obviously was on the short list that has been released recently. he doesn't really want the job. he wants to go into the private sector. wants to make a few bucks. this is what people on wall street who are telling the fox business network who have contact with mr. geithner. so who is the odds-on-favorite? people on wall street are saying it is general net yellin.
i don't think it's a secret. some say alan blinder, princeton economist. reason people on wall street say this, i'm not talk about junior trader, senior executives on wall street are saying this. whenever they're together according to one person they finish each other's sentences. tracy: she completes him. >> that is sick. but anyway, they are on track or on par or, you know, in sink, if that is the right word, janet yellen is a dove. she believes there is dual mandate. dual mandate of fighting inflanks and dealing with unemployment. she says employment part is more important. therefore i will stimulate the economy with monetary policy, i.e., low interest rates and printing money. here is where it gets interesting in terms of what we're talking about today. 230 plus selloff because ben bernanke kind of hinted, and that is the right way of putting it, kind of hinted about
tightening, stopping qe, stopping qe is printing money. tracy: right. >> maybe in 2015 raising the short-term interest rates. you know, i believe he did that, you know, you know he says that in pretty explicit way. that blew me away. now why is that? did you notice on monday or tuesday, president obama was on charlie rose, basically throws him under the bus. everybody knows the guy, wasn't going to be here next year but the way he unveiled it was kind of like a slap in the face. bernanke obviously almost, you know, elected obama because if it wasn't for monetary policy, fiscal policy wasn't working. adam: if we were to get mini-me, janet yellen, essentially mr. bernanke in female form -- >> i would say, mr. bernanke on steroid in female form. adam: good for wall street but even if perhaps she is completing the president as tracy says, potentially good for the president because she would continue free money for the economy? >> not, this is, we're getting
in dangerous territory here. if you keep printing money there is pointtwhere you create massive, massive asset bubbles some people say still exist. when the bubbles unwind, when i say bubbles, people buying riskier investments that blow up like in 1994, orange county bankruptcy, orange county was invested in risky assets that could be one thing that holds her back. one thing we will have, and i think that is pretty clear, continue ages an even more so of the accommodationist policy of ben bernanke. using monetary policy to stimulate the economy. one of the tragedies is that the obama economy will not be able to stand on its own. what the market is saying right now, if it does have to stand on its own, if you take bernanke at his word, remember he will not be here next year, remember it will be somebody else, take bernanke at his word this economy is worth not that much. it is not a great economy. we have a pickup in housing, we
have better gdp numbers although still -- adam: not great. >> no one is forecasting anything above 3%. we have lots of underemployment even if employment is -- unemployment is going down. that is with accommodationist fed policy. what happens if you take that way way? market says if you take that way, don't bet on it. that is bad economy. tracy: should the market not benefit from that, because that will stop qe? >> that is the second phase. the market has a mind. the mind if you stop it which bernanke said he would or probably would if certain things happen which he thinks are happening this is exactly how he said it, all those caveats. tracy: right. >> the market says sell. if janet yellen comes in, all bets are off, i'm printing money you will see the market go up. if they print money as average investor, market goes to 20,000.
if they don't print i think we'll get more of this one or the other. adam: charlie gasparino. tracy: thank you very much. charlie gas. >> time to check markets now. how your investments are performing right now. real quick, dow is down 220 points. s&p 500 flirted earlywer the 1598 level. we're back above 1600, 1603. one thing we should point out, managing senior editor, not charlie gasparino, charlie brady. charlie is sit right here. volume is 39% higher. charlie will be treasury secretary. this is important. when you see this kind of volume, we're 39% above average. 3.27 billion shares traded as of 1:00. that is over 1.7 billion the past month a lot of people are moving out of the market. tracy: apparently a lot of people are not doing too much moving this summer. drivers hitting the road this fourth of july according to aaa a.
43.4 million people will be on the road. that is down 300,000 from last year. aaa says the decrease is slow economic conditions and taking less time off work. the biggest travel period for the holiday runs from july third to the 7th. last year july 4th was on a wednesday causing more people to take a long weekend, taking vacation time. this year is different because it fall as on a thursday. you know my theory if. tracy: the jersey shore is playing into this. not as many people going down to the shore because, well there is nowhere to go. adam: it is beautiful on the jersey shore. tracy: and coming back slowly. adam: we'll move something very sad. james gandolfini, we'll look at the career of a man who was a bankable star. tracy: your dow is down 217 points. look at some of the losers on the nasdaq. we'll be right back.
adam: there is no doesn't you herd shocking news, "the sopranos" star, james gandolfini dead at the age of 51 because after possible heart attack. it made gandolfini a superstar but what about the premafia days? dennis kneale joins us. >> "the sopranos" made him a superstar. it started in 1999. ran until 0 #. it was highest rated hbo series ever. hbo only received 25, 30 million homes it received 12 to 14% of the people watching the show. that is astounding figure. he was a character actor before that supposed overnight success. 25 films grossing half a billion dollars. he got noticed in true romance
in 1993. played a philosophical hit man. end up in a huge fight scene with patricia arquette. i never forgotten the film. he gave a new layer to a thug. then in "get shorty" with john travolta. he played a thug with ambition. we had never seen a leading man like this. as a mobster he was a killer who was in therapy. utterly unfeared by his wife and kids. they pushed him around at home. also he didn't have a six-pack abs. he had a paunch. he had a guy with dems and dos instead of smart commentary. look how his box office value rose before tony and after tony. before tony soprano, we counted six films he did. they grossed barely over $300 million. after tony, the six films he did in the after the series in '07 did almost half a billion dollars just those six. it made him rich but "the
sopranos" arguably made hbo richer. this set them up as a great tour of original programing with true blood and "boardwalk empire." i'm not sure they would have got then those with the start -- adam: actors make living totally in the cable universe from those stuff. >> shows can go is a lot father than a big mainstream audience. this is $1.4 billion business. earns 30% margins. we think netflix is the next hbo? you know what? i don't think anybody is the next hbo. quite a franchise. tony soprano, james grand gaped that is a big loss. at age 51 seeming younger all the time. adam: yes its, dennis. tracy: first on fox interview with moody's analytics, mark zandi, he is working with adp on a new report about franchise
tracy: welcome back. i'm tracy byrnes. ashley: i'm ashley webster. the fed selloff lasting for a second day on wall street. the dow is tumbling down 23 # points. -- 237 points. trading back below that 15,000 level. all despite more positive news on the economy. we're looking for answers on the markets next moves all this hour. tracy: plus american franchises adding thousands of jobs last month. moody's analytics chief economist mark zandi, he says they have been critical in this recovery. he is here on a first on fox interview. ashley: also meet the ceo hine one stock bucking today's selloff. the biotech company has nearly
doubled in price since the ipo two months ago. ken mark will be here as our special guest straight ahead. let's go down to nicole petallides on the floor of the new york stock exchange. nicole, it's a tough day. >> it is. we're watching keytek call levels. the dow jones industrials near session lows where you're seeing all 30 dow components in the red whether financials energy or tech, red across the screen. some say these are great he buying opportunities. others are sitting on pins and needles as we try to hold technical levels. breaking down below 159 # on s&p 500 you say -- 1598 you may see al gore rifles coming in. this may be a bullish sign going forward or a sign for the pulse. that is something we're watching closely. oil and gold are taking off.
oil is down three bucks in percentage terms that is 3%. we watched oil around $100. today at $95 there have been a lot of big swings. now the federal reserve indicated they could begin the massive winding down of stimulus. that moves these commodities. we talked about gold tumbling to the lowest levels in 2 1/2 years. it is below $1300 a troy ounce. sitting at 1283 and change, down 90 bucks. no safe havens on wall street like utilities or telecoms or interest rate sense testify. not gold. only thing higher with green arrow is the vix, the fear index and the dollar. back to you. ashley: busy day, that's for sure. volume sup 39% over the average that we've seen. nicole, thank you very much. tracy: today's solid economic news was not enough to stop the worry over the fed easing up on the bond buying program. peter barnes is in washington, d.c. with more. hey, peter. >> hey, tracy.
yesterday federal reserve chairman ben bernanke signaled the beginning of the end of the easy money policies the fed has been using since the financial crisis five years ago. for starters bernanke said the fed could slow the bond-buying program, quantitative easing, qe, later this year as long as the economy keeps growing and unemployment falls. so far the fed's bought $2.5 trillion in bonds as part of qe. that is supposedly helps push down interest rates. in a note to clients today, renaissance macro research said, quote, we suspect markets are significantly overreacting to the prospect of tapering in qe. they have been convinced they need the fed's training wheels so they're nervous about losing them. rbc capital markets said in a note, quote, one of the big surprises in the bernanke press conference was that the chairman did not attempt to walk back the recent rise in interest rates in effect doubling down on higher rates. bernanke said yesterday that tapering was really not that
bad. kind of like just taking your foot off the gas pedal in your car when it is cruising at a nice speed, not hitting the brakes. one analyst today drove the car analogy a bit further. >> what he is doing is lot like monetary drunk driving. i think he is jerking the wheel back and forth and the market doesn't know what to make of it. >> investors seem to be shrugging off good news in the housing market. realtoos announced existing home sales in may rose 4.2% to a 5.18 million annual sales rate, highest level since november of 2009. weekly claims for unemployment insurance rose 18,000 to 254,000 in the weekending june 15, slightly higher than expected. tracy: pete barnes, thank you very much. ashley: joining us for more on the fed and the economy, bob pavlick and julia coronado,
bnp paribas north american chief economist. thanks to you both for joining us. lots to talk about. julia, ultimately you don't think the fed will be able to exit as quickly as they like because of what you call a summer wobble in growth and financial markets? >> that's right. so you know the fed has made it very clear, bernanke made it very clear that they are data dependent. they have a pretty rosy forecast. their forecast is a good half a perjuriage point higher than the average forecast. if they don't see 200,000 a month and gdp is slower to accelerate the second half of the year i think they will push it up. they're trying to socialize the idea and make sure markets are prepared for ii whenever they come. ashley: bob, we're socializing the markets. this is the response. we're down more than two hundred points today. what is your take on the market right now? is this much talked about correction that was needed for
this market? >> well, it could all of that but there's a lot of concerns about what's going to happen with interest rates. if they continue to go up that means it could have a negative effect on the overall earnings environment. obviously corporations used this low interest rate environment to reduce number of shares outstanding, increase their dividends and that's certainly given a little bit of a positive look to the the earnings outlook. people are also concerned about what will happen with housing. obviously interest rates will go up. that will obviously affect housing and mortgage rates going forward. you have to remember that interest rates are still reltestifily low and are going to continue to stay low even if they go to 2.5% or 3% on a 10-year treasury. is it going to have an impact on the global economy or at least the economy here in the united states? it could but as julie said the fed will do anything until they start to see continued correlation between they expect and what is happening with
overall economy. we do think that is going to happen. we do think the fed will start the reduction in asset purc just getting prepared for that right now. i think it is really being played out in the overall market. if you're a long-term investor you're not really all that concerned. you look during the course of the action between yesterday and today. you sort of factor it in. you don't let at that bother you too much. ashley: julia, let me pick up on something bob was talk about, the housing market and the rising interest rates. ben bernanke yesterday suggested that he perhaps thinks that indicates more optimism in the economy. has nothing to do with tapering. what is your take on that? >> that is a little bit disingenuous on the part of the chairman i should say. most of us have not been marking our growth forecasts higher for the year. in fact we've been nudging them probably a couple of tenths lower. that is exactly what the fed itself did. it lowered the top end of its forecast by a couple of tenths. the economic data haven't been terrible but they have been
mixed and in general consistent with slightly slower growth in q2 than q1 and q1 wasn't great shakes at 2.4%. i think the chairman is trying to sort of wiggle around that one. i think they knew that when they started talking about tapering, that the market had gotten a little bit of ahead where they were thinking in terms of how much qe would be delivered. and that they were going to get a market response and they're getting exactly that. so they're taking steam out of the market. they had to be well aware that was coming down the road. ashley: julia, quickly. i want to interrupt. by what we're seeing today, this lessen the chaos or wild volatility further down the road when tapering actually kicks in? >> i think that is exactly what they're trying to do. they know there will be some volatility as they normalize policy. that is just inevitable. we're entering a new era of volatility. it will ebb and flow.
>> you bring up a good point. ashley: yeah. go ahead, bob. >> you bring up a good point because you will see an increase in volatility. right now we're basically in that heart of where good news is bad news. any kind of good news is going to substantiate the case for the fed to be able to do their tapering. any kind of positive economic reports will give the market a little bit of concern. it will give reason to people who are long bond to try to go out to get a bid for those bond. i think as we get closer to the end of july, we get closetory september, people have largely circled on their calendar with a big red pen you will see people starting to reduce bond exposure. eventually they will start to increase their exposure to equities. >> that is a bit of a wildcard actually. i think fund flows are the thing that is potentially destablizing factor here. if you start to see investors and even retail investors start to rush for the exit in bond fund then you could get a self-perpetuating move that is a lot more vvolent than we've seen
thus far. that is the worry people have. we have seen outflows from bond fund the last couple weeks. people are watching very closely what retail and institutional investors do with their asset allocations positions. ashley: bob, quickly to you -- >> julie make as good point. real quick -- ashley: people going into cash, getting out of bond and equities? >> yeah they are. they are worried. a the love retail investors are scared. they're worried what will happen with interest rates going forward. eventually you will see a reversal what is going on with treasurys and with fixed income market. people will start to see, 4, 5, 6% on corporate bond. they will start to get attractive. that you have to be careful about. if the economy continues to improve and the fed moves closer or a little faster on raising interest rates that is good for the equity market and good for the overall economy but it could be a trap for those looking to try to capitalize on higher yields which are bound to come. ashley: we are out of time. great discussion, thank you so much bob pavlick and julia
coronado. thanks for joining us today. >> it's a pleasure. >> thanks, ashley. ashley: so much to talk about of course. the market is reacting to all of this as well. interesting times ahead. volatility -- tracy: here to stay. ashley: here to stay. tracy: as ash said we're watching this selloff by the minute. the dow is down 241 points. some of the biggest losers are up next. coming up moody's mark zandi working with adp tracking franchise jobs. he will joins us in a first on fox interview. that is coming up. ashley: on a day with strong dollars, let's take a look at oil. it lost some of its steam along with everything else, down almost three bucks on the day at 95.39 a barrel we'll be right back. ♪
ashley: welcome back, everybody. look at the selloff. down 263 points down on the dow jones industrial average. let's look at other numbers for you. it is a broad based selloff, no doubt about it. one thing heading higher is these interest rates on the 10-year up another seven basis points to 2.44%.
take a look at the 30-year treasurys for you as well. we've seen these rates inch up ever so. ten basis point jump on the 30-year yield, up to 3.52%. the dow is off by 263 points now. so the selloff broad based and, we've been talk about the volume too. it has been pretty high. tracy: let's talk about how you can keep some of this money. charles payne is here right now, taking a look actually how you can keep your portfolio safe in this market. charles, do you think this, though, i mean like a big ol', big official selloff? or is it just one or two day -- >> i think this is one we've been talk about not for years but the latest leg, the pullback, the correction, if you will. although technically they're different things. ashley: yeah. >> i think it is amazing that anyone would think, okay the market has to be up every day. we have to become accustomed to this. maybe how forceful it has been. ashley: volatility. >> first two back-to-back 1%
down days on the s&p since november of last year. that was a little bit of a rocky period. we hit a bottom in december and started this leg higher. the thing is, i use fundamental analysis but i also use technical analysis too. this is when technical analysis comes into play. to me it is a reflex of emotion. you ever see a stock goes from 32 to 28 and it goes back up. all the sellers are out. anyone that believes in the stock is not going to sell it. when 28 cracks, it cracks people before then who have been pretty strong, pretty resolved not to sell. ashley: yeah. >> that is what we're getting. >> some technical numbering people that said i will not say may start to blink. fundamentals you're looking at? >> 14,959 on the dow is key number. ashley: s&p? >> for the dow. s&p, i'm still doing work on the s&p but i've been doing a lot of work on the dow, 14,127 would be
the ultimate worst-case scenario told me, stewart i thought we would be down 300 points on the session. there is no impetus to jump in. tracy: charlie gasparino made a great point. you have got to listen to the market which is skill very hard to acquire, right? what he was saying, the market is basically saying without liquidity this economy is not all that. it can not sustain itself. telling uncle ben, the economy is not all that great. >> well, sometimes. there is always a war between wall street and ben bernanke. wall street send a message about dumping like this. this is form of whining and crying. >> exactly. >> we had a couple of pieces economic data, existing homes were better than expected. pmi came in substantially better, i mean philly fed came in substantially better than expected. our manufacturing wasn't as good as expected but at 52, it is
well ahead of a lot of other manufacturing numbers. sometimes there is this competition, a tug-of-war. wall street tries to force the fed's hand with this kind of stuff. i'm not sure the economy is giving out a message just yet. tracy: but traders seem to be. >> but the traders are. that's what traders do. you sit back and you wait. we were 25% cash coming into the week. i've been looking for this pullback for a long time. tracy: you're shopping? >> well, not yet but i'm licking my chops. ashley: question, you buy on a dip an where is that. >> i'm making a list right now. i don't know the bottom yet. ashley: yeah, yee. >> if you pick the bottom, i always tell people you're lucky or you're lying. tracy: go shopping. >> monday morning i'm looking at it. ashley: i love your honesty, charles. >> good to he sue. ashley: quarter past the hour. let's get back to the floor of nyse. you heard what charles had to say. >> i do. sometimes people get nervous and they sell stocks in companies they love. i mean it is noo easy to watch a day yesterday where you're down
over 200 points and then see it echoed again today. right now the dow is about ten points off of its session lows but still that's a loss of over 1 1/2%. the s&p is holding 1599. 159 # is so crucial. those were the june lows. that is obviously a level that the bulls are watching. they want to see it bounce off the bottom. have the double-bottom and move it up if it goes down below that you could see more selling because of what happens with those algorithms kick in. homebuilders look at these. we got in existing home sales today. beazer homes is down 7%. pulte is down 11%. this group moves in big, big increements. today especially. d.r. horton is down over 9%. many are up 50, 100% over last fifth two weeks. back to you. ashley: taking a beating with the high interest rates. nicole, we'll be back with you
at the bottom of the hour. tracy: we're tracking the market selloff until the close. coming up moody's mark zandi says franchise jobs have been key in the recovery. he is here to talk about a new adp report gauging them. that a es next. ashley: look how the u.s. dollar is today. it's a flight to safety among all this selling. dollar up against all the currencies, euro, pound, yen, and mexican peso. we'll be right back. change makes people nervous. but i see a world bursting with opportunity, with ideas, with ambition. but i see a world bursting i'm thinking about china, brazil, india. the world's a big place. i want to be a part of it. ishares international etfs. emerging markets and single countries. find out why nine out of ten large professional investors
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>> at 23 minutes past the hour i'm arthel neville with your fox news minute. tropical storm barry made landfall along the coast of vera cruz, mexico. the second tropical storm of the season came ashore this morning and threatens to unleash deadly floods and mudslide as it moves inland. crews have their handful battling wildfires in arizona and colorado. strong wind could cause one wildfire near prescott, arizona, to grow. more than six hundred firefighters are trying to get a handle on a he nearly 11-square mile fire. multiple fires are burning in colorado where the fire danger remains high across much of the state. let's get you back now to
ashley. ashley: arthel, thank you very much. we appreciate that. let's look at the market as the dow continues to drop even more. we're down close to 300 points at one point. we're down to 384. that is almost 2% on the day. look at the other markets as well. we want to point out something on the 500, a keytek call level to keep an eye out for is 1598. we're below that, 1595. 1598 was intraday low hit on june 6th. we just broke below it. if we close above it that could be a double-bottom and bull irsign f we close below these levels of the s&p on 1598 the bears could come out in full force that is one of the many stories we're following today. tracy: yeah. adp, they are known for their market moving monthly look at private sector hiring. the payroll processor is tracking jobs at franchises
across the country. they're launching a new report in partnership with moody's analytics. chief economist, mark zandi joins from us moody's in a first on fox interview. so great to have you here in the studio. >> thank you. tracy: you were just saying that adp is a plethora of data. >> it is. tracy: now you get your hands on it. >> not only here in the united states but overseas as well. we're working in europe. tracy: you guys are partnering together and figure out how to get something good out of all this? >> we're getting information. i think the national employment report which we do every month is very helpful. provides a lot of insight what is going on. particularly by company size. so we know what small businesses are doing well. tracy: right. >> you mentioned the franchise report. this is interesting because there is no other date that is covering the industry. that is a big industry. eight million jobs. that is 6% of the jobs base so it is not inconsequential. tracy: if franchises arep
popping up all over the place, people are hiring, somebodies that to get a loan to do this. is credit finally getting out there? >> it is better, much better. commercial and industrial loans, c ann i loans, is growing at double-digit pace. interesting factoid for you. the amount of c & i loans is almost back to prerecession levels. that is positive. i wouldn't say it is fully open. there are a lot of folks get not getting credit that probably could in a normal economy but it's a better place. tracy: a new frozen yogurt place is coming up. >> what is it, thro. tracy: 16 candles, you name it they're all over. somebody is doing something. >> that is obviously fran chasing. it is actually interesting, it is across all kind of industries. for example, the manufacturing sector, they're franchising bakeries. tracy: interesting. >> so every industry has a set of franchises.
they're doing well, quite well. tracy: adp typically known for small, mid-sized companies. just looking at the data, where do you think the economy is right now? >> it is okay. we're growing 2%. that is gdp. in terms of jobs we're creating a couple million jobs per annum. interestingly, it has been very stable growth. the job growth for 2 1/2 million, that is what we're getting 2 1/2 three years. it's okay, meaning enough to keep unemployment moving south but not really enough to make us feel really good because unemployment is still high, 7.6%. how is economy doing? it is okay. tracy: we look at market, the market is not even okay. at least we had that to fall back on. >> right. tracy: do you buy not notion we need to start tapering sooner rather than later? >> think the path that chairman bernanke laid out yesterday, i think it's a pretty credible path. i think he was crystal clear in terms of unemployment thresholds we need to hit before that
happens. my sense in the market what is going on in the market it has come a long way. i don't know the numbers offhand but even with today's correction it is up double digits since beginning of the year. almost 20% from a year ago. almost garden-variety correction. when the market goes this far this fast, anything that doesn't write to everyone's script you will get a correction. tracy: what needs to happen to get jobs out there more, to get unemmoment back down? >> i'll tell you. i think it will happen if we do nothing because the biggest drag on the economy now is fiscal policy it is tax increases and spending cuts. tracy: right. >> if congress and administration do nothing and odds are they won't because they won't be able to change anything of consequence, this time next year the fiscal headwind will fade and better private economy, what is going on, businesses, households and financial civil will shine through. if you asked me back a year ago i think we'll do much better at that point. tracy: we'll have you back sooner than a year. >> okay. tracy: at least next year to
make sure that is all true. mark zandi, moody's analytics. thank you for being here. >> thank you. ashley: we have breaking news for you on one of the stocks. clearwire shares halted for news pending. so, shares of clearwire not being traded right now. we'll find out why. we'll be speaking to nicole, down on the stock exchange floor very soon. much more on the selloff ahead. the dow shedding almost 300 points. down 292. we're live from the stock exchange next. plus investors are expecting solid results from oracle after the bell. we'll have a preview coming up. tracy: first, let's look at some of your winners and losers on the s&p 500 as we head out to break. nicole is talking about gamestop all day, up 6.4%. we'll be right back. friday night, buddy.
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♪ tracy: 90 minutes until the close. the dow was down 300 points. it has since bought a couple little bit. nicole petallides on the floor of the exchange, a busy day for you, grow. >> reporter: it really is. he's a the kind of dazed, i start to feel like -- for show for over year -- for some years. these are to feel like the market is a baby. today's narrow, you start to get to the breaking news on clear wire. we talk about the fact they have a new offer price, $5. that new price represents a premium over sprint's prior offer of $3.40. this is why we saw clear wire halted during that time. we will see whether or not it is trading again, but it is not trading right here on the floor of the exchange. is one that we are watching very closely. as far as the markets, the back-to-back selling, over 200 points to the downside yesterday. today down over 300 points. you have traders watching the
1598 level on the s&p 500. we broke through that. the algorithms taken and selling continues. you have two days of selling. some people think it's a buying opportunity. others say it's obviously the worst sell-off today is a row since november ended concerned and sell the companies that they love. we'll see what happens tomorrow. all solid to bring you over tomorrow, game stop. has the we haven't seen since 2008. here is right now, up six and a half%. this is on the news that microsoft, x box one, that consol is coming out, but the big deal of the games. we thought that maybe would not be able to have that old game story salomon now that you can, that is big, big news. because basically people can come in, sell their old games and then came stop resells them far more and make a lot of money on that. a big margin generator for them, big revenue. that is good news. as a result, real winner on and they were you see a lot of selling. tracy: the gamers don't really
give a darn about the market. they move on to the next video game. thank you. ashley: what he was pointing out november 7th. more than seven months. well, these wild market swings as we have seen lately could be confusing to investors, of course, who wonder how and when to adjust their portfolios. often they make mistakes. joining us now with more, timing in these environments can be very difficult. >> timing is a big question, and a lot of people like to time the markets. i am not a fan. let me tell you why. a day like today down 294 points, yesterday down 200. people get nervous, anxious to muster worrying about investments and you don't know what's coming monday for now, two days from now, next week, next month. let me show you some numbers. these numbers are meant to tell the story of what happens to people who try to time the market. i say that you are investing 2,000 every year over 20 years. if you have perfect timing and
you pick the lowest point on the calendar all year long to get and you make $184,000. let's say you take the same day every year, january 1st. you don't even pay attention to timing and you would make $171,000, not really that different. if you pick the worst day on the calendar, the day that stocks were most expensive, 149,000. look at that, and if you were one of those people like we know so many who were staying in cash you would make $66,000. just hanging on to that cash doing nothing at all. so these numbers come from3 charles schwab. i am just trying to show that timing does not necessarily give you the big benefits that you are expecting. and i know a lot of people today are probably thinkkng, you know, i will ratchet back the stock investment. it is time to sell. i have ridden the wave. you don't know where it's going to lower or higher, and it is hard to make a decision like
that. i am much more a fan of did ended out a little at a time, make your decisions away from the heat of the market. tracy: you have to take the emotion out of it which is very difficult for a lot of people. ashley: very good. what are you getting into? >> we will be talking about it with ric edelman, one of the top-ranked financial advisers in the country. and lots of other brick stores as well. ashley: as always. thank you. do not miss the willis report tonight at 6:00 p.m. eastern time right here on fox business. tracy: breaking news. oil joining the market sell-off closing down $2.804. $95.40 per barrel. that is a drop of nearly 3%. that should not surprise anybody. oracle says it is set to report its fifth quarter -- fourth quarter earnings. there are expecting a strong report, we are in the newsroom with the report. >> reporter: expected to do much better. recently strong fourth quarter,
expected to $0.87 earnings per share in the fourth quarter up from $11 billion in revenue. this will be good news, two major deals with the department of veterans affairs and the washington state university system which would be an upgrade from an already existing system. this is believed to be worth more than $100 million. now, this would also be a bounce back from two previous week quarters when they reported new software licenses down, falling by 2%. subscriptions are key to watch as more competitors are trying to disrupt oracles domination. last quarter according to one of its many competitors and start up, 27 oracle-using companies switched to their product. now, this includes global telecom, a fox business investment banks and a lot of other big companies. analysts say many companies often switch to a club-based and open source products to allow themselves to adapt to newark technology needs.
tracy: what about the legacy hardware segment? what does anybody expect there? >> they struggled in this area. expecting revenues of $700 million after harbor revenue sank 23% last quarter. expected to continue facing a challenge intel perhaps an improvement in 2014. meanwhile, going back to cloud technology, expected to see growth of 4%, $240 million. tracy: that this stuff. thanks, jo ling kent. and do not miss full fox business coverage of the arco earnings report today on after the bell. ashley: heavy selling pressure. no doubt about it. worries about the fed. insight from a trader live at the new york stock the stains next here. tracy: our special report small-business big ideas. one company growing big by selling things that you cannot get in a big box door. first, we have to check on your tan and 30-year treasury as we head out to break. up seven basis points.
your 30-year is moving just as much, up ten basis points. the dow is down 298 points. we will be right back. ♪ i want to make thgs more secure. [ whirring ] [ dog barks ] i want to treat mo dogs. ♪ our business needs more cases. [ male announcer ] where do you want to take your business? i need help selling art. [ male announcer ] from broadband to web hosting to mobile apps, small business sotions from at&t have the security you need to get you there. call u we can show you how at&t solutions can help you do what you do... even better. ♪
rates are expected decline next week in response to a federal reserve chairman ben bernanke climate. there will likely reduce the bond buying program later this year. according to freddie mac, the rate now is just under 4%. jumping in early trading after the medical icemaker received fda clearance for its wages system which is used to treat lesions including age -- age and sunspots. speeding past toyota for the top spot on j.d. power and associates. the first time in 27 years.
worse elsewhere, especially in greece. we think we have it bad. the imf saying that they may be suspending more bailout money to that country and that is what they say a whole in financing is pretty dead three to 4 billion euro. greece now blaming other european capitals central banks saying that they are refusing to roll over on the greek bonds that they hold. that has created a shortfall. imf says it needs to be taking care of, otherwise you don't get your rescue money by the end of next month. greece, once again, turning back into the headlines because of lack of money. it is a tough day on wall street today. let's take a look at what the dow is doing. it was down 300 points are a little bit more than that. still up by 282 points. same on the s&p.
we close the session. that could be a very bearish signal for the markets. we'll keep an eye on that as well. tracy: let's talk a little more optimistic year. small business, big ideas. start out with a passion for custom-made clothing. in four years custom-made has turned into an online community connecting viruses. more than 12,000 acres. treating everything from cavernous to motorcycles. co-founder and ceo joins us now. hey, i love this. you were making custom shirts and said, we have to go by is custom-made website to and come taken over. >> yeah. my co-founder and i were both -- we love custom stuff, so we had custom shirts and belts. we really saw this opportunity to bring tustin we stumble across website. the owner of that site actually was willing to sell its u.s. we took what used to be a directory of woodworkers and furniture artists and turn it
into a big marketplace were all different types of makers. ♪ anything customs is finding all these artists. woodworking is a dying breed in would not know how to find one. i know not to find a custom cabinetmaker. all these people come to your site. you're helping each other. do you take a cuttof the sale? >> we do. we take a commission from the maker. with don tyson of fronts. if they get work from a customer we do take a fee from them. >> 10%. it's really interesting. people want to understand the story behind things, between now wants to know where my food was grown, want to know where the wind came from. i you benefiting from all that? >> totally. that is one of the things that we see as a big market mover for ross. you talked about food, but the organic food movement, people
really want to know the story behind the things they're consuming. we allow that to happen. we allow customers to watch their peace being created. they can, you know, watch the maker going to a lumberyard, figuring out what type of wood to use and you really have a safe in the piece as it is being created which is a cool concept and really unique for customers to experience. tracy: it most certainly is. i apologize. we are out of time, but everyone check of the website. i love that you know the story behind your stuff. our special report. small business big ideas. thank you for taking the time. >> thank you. ashley: to a very cool. let's get to these markets, as you say. let's sit down to the nyse. our good friend joins us. is this overreaction or alternately something that the market needed? >> no one ever likes it when they go down. up is always better than down. a lot of people have been
fighting for some sort of reaction. i think this is slightly yesterday. the public could go back with the benefit of 2020 eyesight, the end of may, may 22nd. giving testimony. then we had the release of the fed minutes which disagrees with what he was saying. sort of a message there. the market has been on steroids for almost three and half years now. and when you take away the steroids or you take away the candy, you know, clearly you're going to get a negative reaction. the real $64 question is as you oppose it, and i don't know the answer, not sure anybody does. is this a pullback or has there been a game changer? ashley: we appreciate. tracy: a battle tech bonanza. more than a dozen companies have gone public. what is behind this resurgence?
we will ask the ceo of comerica next. ashley: let's take a look as some of today's losers. a lot more losers as we get to the break. we will be right back. every pant wants the safest and healthiest products for their family. that's why i created the honest company. i was just a concerned mom, with a crazy dream. a wish that there was a compy that i could rely on, that did all of the hard work for me.
♪ tracy: check on these markets because the selling is accelerating a was at -- as we enter the last hour, down 328 points right now. that is well over 2%. clearly well below the 15,000 mark. as look at your s&p in today as well. your s&p and now, those are in today charts. that is not a pretty charged whatsoever. and, of course to my again, your ten and 30-year charts as well this. your 10-year up seven basis points, just over two 1/4%.
your 30-year ten. is higher. the market is down right now 3303 points. ashley: the ethier index also up to 20. no surprise. shares of comerica are up more than 50% from the ipo which was just over two months ago. the biotech company has broken new ground on all treatments for hiv patients and is also working on new treatments for hepatitis c, influenza, and malaria. it is quite a list for three joining us now, mon-khmer president and ceo, can mark. thank you for being here faugh. >> we were just noting that the stock actually moved higher, up $0.8, so holding well in a very difficult environment. you went public in april. a couple of months ago. has been pretty good going. >> it has been indeed. we used the jobs act to get a lot of investors prior to the ipo would prefer to be a very successful strategy. ashley: that allows you to make your bids bought before which is really made a difference.
>> we talked to dozens of investors over the months before the ipo, something that was not possible before, and many of those investors participated in the ipo. ashley: how much money did you raise? >> 117 million. ashley: where does that go? >> we're using that to face that -- find the phase three clinical trial which where developing, a broad spectrum antiviral. double strands of dna viruses which affect people that receive bone marrow stem cell transplants. these irises grow up after you have gotten this biological oil changed. our drug is designed to stop the virus progression. ashley: ipo as opposed to emanate. why? >> it's all about value creation we look at a number of opportunities. for us, this is very important. basin our conversations with investors, we knew there was an appetite an interest in the country reflected in our current standing with the investment community, and we have a clinical team which is phenomenal, so we felt we could put those facets together to develop if this drug are cells which is what we are doing.
ashley: they say that the fortunes of many biotech companies ride on these successes of the drugs that the test and so therefore it can be a risky investment. >> it is a tremendously complex and risky scenario. there are major failures in this business, major successes. these life-saving medicines are hard to develop. it takes decades, 10-15 years, hundreds of millions of dollars to me if not billions of dollars. it is not an easy game for. that is like talking to people in education is so important. ashley: the supreme court taking on this case involving generic drugs. what is your take on that? is a deal that is done between the original drug maker and the generic maker. basically keeping it off of the market. is that correct? >> that is something at the far end of the life cycle for a company like chimera. very near-term focused on protecting our ip. things you're talking about is something at the other into the cycle, not something we're focused on 57 that doesn't affect you at all. where do you go from here? what is the next big landmark for your company?
>> russ, we are starting our phase three clinical trial next quarter. that is going to be in the hundreds of patients to receive these boehner systems of transplants. the idea is to prevent these viruses which can lead to a horrible problems, outcomes, or death in a prevent them from reactivating in the patients. it will take about two years to run at trial. we will know the answer in 2015, but in the interim a lot of other things will happen because we have this threat which we think is a broad spectrum drug against many different viruses, and that is what we are trying. ashley: we wish you success with that. congratulations on going public. >> thank you so much. ashley: there you go. tracy: their dow is down 333 points right now. countdown to the closing bell is next. a big fat sell-off going on. hello can it go? also want to point out that gold is a 2-year low in your tenure treasury is at -- the yield is a 22 month high. it will have weigh more on this. countdown to the closing bell is next. don't go anywhere. ♪
,. >> reality bites. investors make their move. willet the biggest winners and losers and ways to apply the taper game. we look at what it could mean for your investment. while the u.s. deals with its own spying scandal, they decide to allow security agencies to tap into e-mail and phone calls without court approval. "countdown to the closing bell" starts right now. ♪ liz: hello, everyone. i'm cheryl lynn for liz claman. it is the last hour of trading, and here we go again. it is just a day. talk about red of three major indices are dow