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tv   Closing Bell  CNBC  June 5, 2013 3:00pm-4:01pm EDT

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hi, everybody. we enter the final stretch on a tough day on wall street. welcome to the "closing bell." i'm maria bartiromo at the new york stock exchange. we are in the red, just off of the lows of the day. >> we've been in the red all day. i'm bill griffeth, wondering whether this is finally the pull back that so many have been talking about and expecting. the markets were down shaper this morning and the beige book came out a little while ago and everybody's reading and parsing the words. the word "modest" got everybody's attention. they think maybe we're seeing signs of a slowdown in the economy. that's maybe what's causing this sell-off again today. >> the jobs numbers out on friday. there is some buzz on the floor and on trading desks that perhaps it could be worse than expected, the conversation has certainly changed as far as the federal reserve. we know a change in stimulus is on the horizon. >> yep. >> today we've got an exclusive rare interview with the ceo of ubs, sergio ermottis, answering the full gamut of questions from pressure to activist investors to sweep the bank up to when it may boost its dividend and what
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he's seeing from clients in this market right now. >> also, former media mogul, now convicted felon, conrad black. the interview will be coming from his native canada, because he is prohibited from entering the united states, yet his new book praises america. a lot to speak about with mr. black coming up. you'll want to stay tuned nfor that coming up. >> but the big story in the day is the market action. we were down better than 200 points a little while ago. we're looking at a decline, 14,989, breaking that 15,000 mark. >> first time since may 7th we've been below 15,000. >> nasdaq down about 40 points on the nasdaq, technology one of the leaders on the downside. broad-based selling today. very few names to point to on the upside. down 1% on nasdaq. ditto for the s&p 500, a 1.25% decline there. 1511 last trade. >> let's talk about it in today's "closing bell" exchange,
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rich bernstein. image he works for a company called richard bernstein advisers. brian relling, our own ron insana is with us and rick santelli in chicago. rich bernstein, you've been a big bull in this market here, what are your expectations for this pullback here? how much do you think is going to happen? >> i don't really know how far down we're going to go or how far up. i'll tell you, though, i think the message right now for the markets is plain and simple that the fed is stupid. because, clearly, they're very worried that the fed is going to prematurely tighten and send the economy back down into certainly a slowdown if not a recession. personally, i have to argue, you mention i've been bullish. i'm still bullish, because i don't believe the fed is that stupid. i mean, they may not be the smartest bunch, but i don't think they're that stupid. >> ron, what do you think about this sell-off? is this the beginning of something bigger or what? how do you see it? >> maria, i tweeted on may 29th that you should sell in june and come back for the harvest moon. i believe that's true both for the u.s. and for japan. i think we're in for a correction here, and i think
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it's the uncertainty over the fed. i don't think the fed is stupid in any way, shape, or form. what i think is going on is that the hawks are trying to make a more convincing case for tapering than the doves would like. i'm starting to see anecdotal signs at airports and restaurants that things look a little bit slower as we enter the summers. i don't think the fed will pull back at all. i think they'll continue. but while the uncertainty lingers, the market is vulnerable. >> do you see a full 10%? >> i would bet 5 to 10. it doesn't hurt to take profits with the s&p up 16% for the year, nikkei up 30% plus. that's whole year's worth of work. you can step back comfortably here and wait to see what happens. >> brian relling, a lot of the selling we've seen recently is attributable to the rise in yields we've seen here in the treasury market. how much higher do you think they go from here, if at all? >> i don't think they go much higher? in fact, i think they probably head lower. the ten-year yields, only a few
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basis points higher than they were back in march. we had a big rally in march and april, sell-off in may, but not far away from where we are just a few months ago. i think rates remain very well contained. i don't think the fed has any intent of tapering back anytime soon. yes, the hawks are getting a little bit more vocal, but most of those aren't even voting members. >> yeah, but rick santelli, rates have been moving up. talking about above 2% now on the ten-year. where do we go from here? what's your take from your sources on the floor there? >> well, i think since somebody like richard bernstein says, you know, it's stupid for the fed to tighten, five years after a crisis, we're still all talking about the fed, then, obviously, interest rates aren't going to soar, because whether it's a 4-% 30-year mortgage, they're always going to have a reason to not follow through on the ongoing debate of the taper. you know, i think the taper debate's interesting, and i think in many ways, it helps the fed's cause, to try to get market prepared for a messy
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exit, but i don't think the substance is there. i think in terms of 2% with a ten-year, if you have another day like today in the stock market, we won't be above 2% tomorrow. >> rich bernstein, how -- what's your scenario for how the tapering goes, when it begins, does it disrupt this market?
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. not by any historic measure, deflation is a clear and present danger around the world. that's doing what it's supposed to do here. i agree, it's premature for the fed to start drawin[qsvn now, particularly if the economy is stalling just a little bit, as the base would seem to indicate, so, rick, we've been talking about the fed not only for five years after the crisis, but i've been taébgóíqr'g about the fed,x unyear, has been talking about the fedcjjtt we started in the business. it's nothing new, it's just what they're doing is a little more dramatic than it's been in the past. bottom line, rich bernstein,
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what do you expect from the jobs numbers on friday, and would you be a buyer here, down 208 points, or do you think there's further selling to come? >> that's an interesting question. i think it would be say that they would hold off on buying until they saw some kind of a correction, and they wanted to get in at cheaper prices. so we'll see if they're still doing that. that's a very interesting question, as to whether they would bay on a pullback, now they'll actually buy on a pullback. i think people should seriously be looking at the stock market still. all the signs, all the classic signs that you get before a bear market, still are not eftd. you're not seeing it. look at the discussion we've just had. where's the euphoria for equities? i don't think it's anywhere. >> brian rehling, what would be your strategy right now as you're looking for income in this market. everybody's been talking about the defensives and the
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income-producing element of that. is that where you would stay or what would you do here? >> income's tricky thing in this market. if you're focused on income, you lose some of those traditional benefits, but in terms of income, diversify across a large number of sectors, you have high yields, preferred, mlts, equity dividend plays. there's a lot of emerging markets, a lot of dividends out there, yield to be had. it's risky, become more correlated, you won't get the benefits in a risk-off type of scenario with traditional fixed income, but that's the way i go about it, if you have a stretch for yield. >> so, brian, what's your take in terms of the jobsxoz@ numbern friday? is this in anticipation of a poor number, or totally the fed and taking its foot off the gas? >> well, i think it's a little bit of both, they go hand in hand, but i quite frankly think you're going to need to see at least three good, you know, 200,000-plus type unemployment .p!out tapering.
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i don't think we're going to get that on friday and i think this is a taper focus, the hawks have been a little bit more focal recently, and i don't think this will continue. i think treasury yields remain low. in fact, bonds probably go up in value. and i think stocks probably go up in value over time too. >> all right, guys. got to go. thank you all for your thoughts. appreciate it very much. see you soon. and the adp numbers out this morning, the private payroll numbers were a little soft for may, below expectations, and the april numbers were revised lower. so we are definitely seeing some softness in the jobs market right now. let's break down stocks that have been driving the market&fs lower so far. josh lipton has names for us. josh? >> a down day for the stock market. in fact, all 30 stocks in the dow now flashing red. let's review some of the worst performers, as we head to the close. fastenal, as a a weak increase
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in april. the data indicative of a weaker manufacturer economy and business spending environment. other notable declinersfjuñ in broad gauge, clifs natural resources, gilead discovery communications, and celgene. bed and bath and beyond, higher. also higher, juniper networks, dollar general,6:÷ microron, edg into the green. bill, back to you. >> josh, thank you so much. heading towards the close, 50 minutes left in the trading session, a down day, no two ways about it. not been much in the way of strength today. all 30 dow components are lower, the industrial average near the lows of the session, down 219 points right now. >> all right, bill. i need you to stay calm on this one. this is the day you've been waiting for, the new blackberry q-10 is available tonight, the one with the keyboard. we have one here on set.
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>> we'll have it right here?! are you kidding me. >> see if it's enough for you to keep using blackberry. >> now seema mody is bringing it right here. first we'll talk with the ceo of jack daniels, they reported a jump in earnings this morning and we'll find out next where the next
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big sell-off underway in wall street today. we've got the dow jones industrial average down 192 points, as you can see, 14,985, breaking through the 15,000 mark. pretty much across the board selling. and we are very close to the lows of the afternoon, as we approach the final stretch, 45 minutes to go in the trading day. meanwhile, brown forming, best known for its iconic whiskey brand, jack daniels, and it's that family of brands that
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helped propel them up. sales of jack daniels saw an impressive 11%. >> and the company is seeing surging demand for bourbon and whiskey here in the united states and abroad. as for the stock today, it's not doing much, but it is up solidly year-to-date. joining us right now in a cnbc exclusive to take us behind the program is brown chairman, former, and ceo, paul varga. thanks for joining us today. >> thanks for having me. >> i'm always interested in trends in drinking habits. we go through the period where we're all about wine and then we went through the period when everybody wanted the wine coolers. now they're going for the hard stuff right now. is that a demographic play? what is it all about? why are we seeing that demand grow? >> first we're really pleased that it's happening, because we're so favorably exposed to the whiskey business and have been since our inception. but i think there are a lot of possible explanations for it. part of it, i think, is just some flavor shifts that may be going on particularly here in
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the united states, where after decades of growth of, for example, in our industry, the vodka business, i think consumers sometimes do get a little bit of flavor fatigue. and here, an alternative or more flavorful brands that actually have really authentic stories and histories behind them. and i think some of the demographics are helping that as well as some cues from pop culture, such as the classic cocktails that get featured in shows like "mad men". >> so what are you expecting the rest of the year, then? how do you see this evolving? is it a surprise to see these changes, the way bill mentioned, we've got all these different cycles in terms of what people gravitate towards? >> i don't think so. i think there's an inherent mixability and, you know, interest in brands like bourbon, and for example, our jack daniels. we know while it's a brand with a great authentic history, has a great story, it also, around the world, is consumed in both mixed
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and straight formats. so i think there's a versatility to the products that, you know, come from, you know, we call, actually, american whiskey or bourbon, but also, i contrast it versus a lot of other categories. the range of possibilities that exist in terms of growing these brands is greater. and the example i would give is to be able to flavor the way we do in the last couple of years with the introduction of our jack daniels tennessee honey or introduce more premium line extension such as our gentleman jack. >> and your sales abroad have grown more than here in the u.s., right? that's really your growth area right now, isn't it? >> it really is.
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states, developed international markets, as well as the emerging markets. >> what kind of a year are you expecting, sir? >> it's a continuation of the results we reported this morning, and we're forecasting a continuation of high single-digit sales, underlying net sales growth, and then we're hoping through the combination of the good investments we make, perhaps some efficiencies, the ability to get some pricing, that we'll, you know, we're forecasting an underlying growth rate in operating income, in a range of 9 to 11%, which is, you know, approximately what we've been doing the last couple of years, so a nice continuation. >> as your growth continues overseas and all the central banks are racing to the bottom, trying to lower the interest rates and the value of their currencies, what does that do to your result? i can't help if your old dollar denominated around the world?
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>> actually, one of the reasons we talk about our business in the underlying terms is, while we pay attention to fluctuations in currency and, you know, we'll periodically hedge our results, for the most part, we have brands that are priced globally and have very consistent pricing around the world, and when we go into these marketplaces, we tend not to get too distracted by the fluctuations in currency prices. so, it allows us to be a little bit more stable than some businesses that do fluctuate quite a bit. >> all right. good to see you. thank you for joining us. appreciate it very much. >> thank you so much for having me. >> good to see you, sir. thank you very much. we have a broad-based sell-off underway on wall street. the dow jones industrial average down. new concerns about whether or not the federal reserve will slow down on the stimulus, just at the wrong time when, in fact, the economy continues this anemic state. >> red arrows all across wall street. is this finally the start of the
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long-awaited correction or could it be yet another buying opportunity? maybe it's both. that's coming up. also, the u.s. government accelerating its exit from general motors, planning to sell another 30 million shares of the automaker. and while taxpayers may be losing money on this deal, up next, we hear from somebody who says the government sale is your opportunity to buy this stock. back in a moment. but one day it's just gonna be james and her. so as their financial advisor, i'm helping them look at their complete financial picture -- even the money they've invested elsewhere -- to create a plan that can help weather all kinds of markets. because that's how they're getting ready, for all the things they want to do. [ female announcer ] when people talk, great things can happen. so start a conversation with an advisor who's fully invested in you. wells fargo advisors. together we'll go far. how old is the oldest person you've known? we gave people a sticker and had them show us. we learned a lot of us have known someone who's lived well into their 90s. and that's a great thing. but even though we're living longer, one thing that hasn't changed: the official retirement age.
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wall street has a cliche for %
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shares the they own. eventually, getting down close to 30% now. that's going to happen on june 6th. it's been a great run. look at that, 34. i think it was $28 in the beginning of the year. gm's up about 28%. back to you. >> bob, the government continuing that exit from gm, is now the time to buy the stock? on "talking numbers," on the technical side of the story is richard ross, global technical strategist, and on the fundamentals, zachary karabell. gentleman, good to see you. thanks for joining us. rich, what's your take? let's start with the charts? are you a buyer at these levels? how does the chart of gm look to you? >> this is not the beginning of a correction in the broader market. this is the end of the correction, and transportation stocks like general motors are a compelling buy at these levels. now, gm loses 50% of its value coming out of that ipo. but when you look at that chart,
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you see it puts in a very nice triple bottom, over about a 12-month period. the stock catches fire into january of this year, then we have our first 15% correction. but that proveso be a bullish continuation pattern in the form of a head and shoulders. we break out, we're pushing 52-week highs here. i think the stock has another 20% upside. we should test $40 by the end of the year. >> on the fundamental side of the story, zach, what do you think? >> first of all, i love technical analysis, the certainty of patterns. if only i would live my life with the certainly of technical analysis, but that's another segment. last week, i said i wouldn't buy the stock, but i would buy the car. gm, i wouldn't buy the stock and i wouldn't buy the car. it's a perfectly viable company now, it's eliminated huge amounts of cost in restructuring, the end of union contracts, shifting production elsewhere. it's obviously doing incredibly well in china. it shouldn't be general motors,
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it should probably be china motors, nonetheless, the stock's about this company in particular that has such a dramatically changed corporate culture or a vastly improved product line. and as far as the stock goes, i think there are just more interesting places to be. >> more interesting places to be, even though that chart -- what would change your mind on this? >> the only thing that would change my mind would be a really revived sense of the company, basically at a branding and product level, the way toyota did, really, 20 years ago. and while it's no longer a bankrupt -- >> i wouldn't discount that strength in china. they're battling it out with volkswagen as the biggest automaker in china. that's a fairly large market the last time i've checked. buick sales up 23%. the last person to drive a buick was rain man, but they're making it cool in china. gm is the stock right now. look, the government is not a particularly true trader. it doesn't matter because they own the casino. don't seem scared by the fact
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they're letting out a little stock here. they're still the single largest shareholder in the company. >> i know we've got to go, maria. china is a very competitive market. much more so than the united states. it's a much more difficult market to get really, really big in. >> understood. gentleman, thank you. keep watching gm. we appreciate your insights on this. see you soon. let's say it. what have you got there. >> i took maria's picture with the new q10 and i can't get rid of it. not that i want to, i can't get back to the keyboard here. nice picture of maria, but i don't know what to do it with after that. seema, i need your help. where were we? the dow down 185 points, coming off the lows of the session and about 30 minutes left in today's trading. >> will ubs consider a split of its bank. we'll talk with sergio ermotti. >> and blackberry's phone with a physical keyboard. >> where do i get my hands on that?
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welcome back. as we've been telling you, a tough day on wall street today. the market is very close to the lows of the day. we have been down more than 200. down 191 points on the dow jones industrial average. broad-based selling, we've got the unemployment report coming out this friday, and there is new worries emerging that the federal reserve may slow down on the stimulus too soon before the economy actually recovers fully. >> as anybody around here will tell you, this is a day i've been waiting for for a very long time. because i have what you would call, affectionately, a vintage blackberry. this one is going to the smithsonian tomorrow when i let go of it. but a new blackberry with a physical keyboard, the q10 is finally in stores here in the united states. >> we've all been waiting for it. seema mody has one in her hands right now to show it off.
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>> it's right here, the blackberry q10, which has a touch screen and keyboard officially launching. verizon is shipping out orders tomorrow and we'll have the phone in stores on june 10th. and at&t stores you can preorder it. the samsung galaxy phone as well as apple iphone both lack the physical keyboard. the q10 is expected to outsell the z10 which launched earlier this year. the question is, will it be enough to help blackberry gain more market share. according to comp score, google android ranked as the smart platform with 52%, apple with 39%, and blackberry with a meager 5.1%. but if they're seeing strong demand, expect blackererberry tt production, which could lead to an improvement in gross margins.
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bill, i know you've been wanting to praise with this. >> no, no, it's okay. actually, we do. so you have a blackberry, as we all do here. how does this one compare? >> i think it does offer the convenience of the touch screen as well as the keyboard, but you're also dealing with an updated software. >> have a new language to learn. >> you have a lot of updated apps and cool features that it offers. the 3.1 inch touch screen as well, and also a great battery life. 13.5 hours of talk time, which is higher than the iphone 5. >> stay right here, seema. we want to bring in our next guest on whether it will, in fact, help blackberry's bottom line. >> here we've got carol roth from intercap merchant partners and todd hazelton from techno buffalo. and we all have blackberries here. what are your expectations? is it too little, too late for them to bring out the actual
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keyboard? >> i'm completely biased, because i'm thrilled that blackberry is not going away. i don't think that this is too little, too late. what i think they've done here is they have stopped the bleeding and that is the critical thing. we have so many people, like maria, who are maybe checking out different platforms. . and i think people are now going to be coming back, because you have the convenience to be able to use it as a toy if you want to, but most of us are using it as a tool. so i think it does stop the bleeding. i don't think this is a die-hard consumer devices. this lacks a lot of those features. so really, it's for those blackberry fans who have been
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holding out. i'm flabbergasted that blackberry didn't come out with this before the z-10. we had some carrier delays. in europe and in france, they were outselling the galaxy s-4 and the i foophone 5. >> that's a gad point. they're two of the most popular apps on the iphone, netflix and instagram. you can't get that on the new blackberry. for those who really like those apps, that's one thing to consider. >> you can get some apps. >> you have a lot of different apps available, but those are ones that are growing fast. >> how much am i going to pay for this tomorrow? >> about $200 at at&t as well as verizon, at t-mobile, $580. >> why is it so much more expensive at t-mobile? >> they have a plan where you pay 90 bucks now and 20 bucks for every month for 24 months. >> that's a big difference, $600 at t-mobile and 200 at verizon
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and at&t. >> t-mobile's new plan is called simple choice, you pay down and pay off the cost of the device over the next 24 months. >> you're going to get one? >> i think it's not really about the consumer user for the blackberry, it's the enterprise customers who put business first and then use it for entertainment. >> let's face it. this stuff goes in waves. everybody wants an iphone or the galaxy from samsung. are there enough companies out there that would still want a blackberry, that you're not going to be embarrassed to bring out a black -- >> i had a very well-known, high-tech executive sit right there one day and he was aghast at what i was playing with here. i don't care. >> listen, there are a lot of companies out there that are old school and that is the way that, from the security of this system, from using e-mail, from texting, the kind of things that people are using at the enterprise level, there's a lot of legacy users, so i think that those people are going to stay
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on blackberry, plus there's a lot of patents, there's a great operating system. they have a lot more than just the user base, which is about $75 million. >> do you think this is a takeover target? >> blackberry is trying to expand boo other industries too. blackberry live rolled out a bentley and they had qnx and blackberry 10 opinion they could be lacking at other places to sell their system as opposed to just on smartphones. >> another thing they're going to look at. >> exactly. >> another value proposition. >> but who wants it? >> potentially microsoft. maybe a company like hp, looking to get back if the game. even samsung. >> we saw hp try with palm. >> that doesn't mean they won't try again and samsung is beholden to the android platform. they're trying to diversify, so they could pick this up as well. >> i'm glad it's on the market at last. >> it's here, and all of those who were eagerly awaiting an upgrade, now they have it. >> merry christmas, everybody. >> thanks, today, thank you,
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carol. we've got this market that is off of the lows, but down the triple digits, down 156 points ton dow jones industrial average. we're about 20 minutes before the closing bell sounds. >> the bull run coming to a screeching halt over the past couple of days. what does it mean? two top strategists coming up in a moment. >> who is the most popular politician in the country? we have the results in a brand-new poll and you may be shocked by this answer. stay with us. mine was earned in djibouti, africa. 2004.
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that is, you had 41% of the people expressing positive views about him. only 12% negative. that's plus 29. it is more positive on a lopsided way, although fewer people know him than hillary rodham clinton, who also had a pretty robust rating. those two could end up running against each other in 2016. and finally, i wanted one note from our poll about what it shows about attitudes on the economy. yes, the dow is breaking records. when you ask them, what does it mean that the dow is breaking records, 21% says it means that the economy overall is doing better, but 68%, 68% say that it means corporations and the wealthy are doing better. so it underscores, maria, the divide between how people feel about their own pocketbooks and their own lives and what they're seeing on their screens in terms of the numbers on cnbc every day.
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>> a lot of skepticism among individuals, still, who are still seeing that. thanks, john, very much. we'll see you later. we're heading towards the close. not looking good for the bulls today, although bob pisani, the selling has moderated here. we're off the lows. >> i was talking to art cashin and other traders. put up the dow here, 60% of the stock up for sale, 40% to buy. that's a little better than it was earlier. so we're listing off of those lows. these market on close orders become very important. if you look at the recent market leaders, they're the ones that are selling off. and there's some kind of profit taking going on. two years ago, biotech were the market leaders. transports were the market leaders. these are the groups that are weakest today, and you can see some of the profit taking going on. you can also see an exchange traded funds, particularly some of the big international ones. the emerging market, etf, one of the biggest in the world, that essentially has two weeks of moving to the downside. right now, we're sitting
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essentially at the lows for the year. this is a big, big market influence here, just a few months ago. >> all right, bob, back to you. >> see you later. we have 15 minutes left and selling has moderated, but we still have some stock for sale as we head toward the close. right now the dow down 191 points. >> we hearing there's talk to buy in financials. apparently some of the big financials like bank of america, we'll keep checking that. we have been waiting for a sell-off like this, certainly, so some can get back into this market, the buy on the dip strategy, is that the way you should be looking at this market? we'll take a look, next. [ female announcer ] there's one thing
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welcome back. >> hi, there. i heard that, holland. is this the recent drop in the market a buying opportunity? that's the question to be asked right now. >> george young says yeah. also with us is mike holland. george, you've been waiting for a pullback to put new money to work? >> yes, i have. i think this is a great opportunity. we're long-term holders and stocks. we think it's very important to make sure that our investors understand that opportunities are now. don't get worried about d
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day-to-day volatility. >> so you would be buying right now? >> and i am. >> michael? >> do you think it's going to go straight down from that? i don't think that. i think we were up a 147% at the end of may from the lows in 2000. we're now up 144%. >> the lows in 2009, you mean? >> in 2009, yeah. and it's the whole theory right now is oh, my god, they are really in a tough place in the market. we're off 2% and ben bernanke on may 22nd said, we are going to have his backing until we get sustainable job growth. he said it. >> i know you've got a couple of specific symptom picks, george, but i just wonder, i was saying to bill earlier, i think it would be a positive if we go down and stay down. so i wonder what you think. if we were to say this return to a positive territory, which obviously is a reach, but that buy on the dip mentality happens so quickly, is that a negative? >> no, i really don't think it
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is. i've got to stick to my convictions. i think longer term, the market's good. i'm looking at specific price points for our stocks, so we can buy on dips should that occur. but on the other hand, i remain a bull. and stocks seem like the way to go with a 2.2% yield in the s&p 3 you know, we've pondered, is the little guy in this market or not? john harwood just had this survey that showed tremendous skepticism on the part of the individual investor who felt that the gains we've seen have largely benefited the wealthy and corporations, not the individuals. so they're still very skeptical of this market right now. is that good or bad? >> obviously, it's good. >> i think the answer is, they are not in the market. we've watched for a generation, people have said, fool me once, fool me twice. but they're not in the market anymore. that is why the market, to george's point, is where it is
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in terms of valuation. it's still very low relative to a lot of other things. >> so what would you do right now? >> i've been an owner over the last few years, continue to be an owner, and the big blue chip companies, that yield 2, 3, and 4% think intel, companies like that, you can't ignore them, because they have a floor, which is ben bernanke, but they're also only 9, 10, 11, 12 times earnings. >> are you buying for growth or dividend enemy? >> dividend growth in income is one of the great things this market gives them. >> sure, it's fantastic. >> beats inflation, yeah. >> enthusiastic. >> no, it works. if you have money sitting around and a lot of people who are watching still donate own stocks, you can buy something. >> is that what you like, george, as well? >> i think there's another important point out there. there's still a lot of money going into bond funds. they say, bonds always work well for me, let's keep putting money into bonds. that's a big mistake right now.
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right now you have the ten-year yielding about 10.5%. if that goes up, you've lost 3% just like that, a whole year's worth of interest plus gone down the drain. >> and you own the bonds directly, they'll mature. doing a bond fund -- >> it never matures. >> it's not a good deal. >> a lot of people don't know whipd of bond funs they have. they have really long bunds and then they're really screwed. just like a whip. the short end of the whip, move it, the value doesn't move very much, the long end, that's the most volatile. >> thanks, gentleman. appreciate it. >> what did he say? >> he said 169 million for sale. there you go. net -- >> so it's to the sell side, still. >> still to the sell side, but not as bad as it was. >> on the dow, we'll see what it does when it comes back to the closing countdown. >> then we have an exclusive interview with the ceo of ubs, sergio ermotti will join us. even the capital concerns, the
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litigation and regulatory concerns, when would you expect to be paying a dividend? stick around, because you do not want to miss his answer on that one. you're watching the "closing bell" on cnbc, first in business worldwide. back in a moment. these are good. told ya! i'm feeling better already. [ male announcer ] new alka seltzer fruits chews. enjoy the relief! [ lorenzo ] i'm lorenzo.
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and we thought then that maybe the moment was changing or beginning to change in this market. and i think we're seeing it right now. >> and the sentiment has changed over the last two weeks. all this volatility and negative. i want to point out, even though we did see a lot of stocks for sale down, we're ending down more than 200 points, bank of america, bill, 300 million shares to buy of bank of america. one of the more active of the trading stocks right now in the dow. >> it's not only the best performer among dow components. there's only one that's positive, which we'll get to in a moment here. here's b of a. >> but look at what the stock to buy was. >> there you go. and what's interesting, the dow is going to track b of a very carefully. see that? we didn't see a lot of buying or selling. it was a general trend lower through much of the day and we're finishing near the lows of the session, right now down 206 points. best and worst performers among the dow components today, cisco has been the best performer, and it was the only stock that was
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positive and now it's gone negative again, so, we've got something to keep an eye on. will it be positive or not today? there we go. and intel has been the worst performer, down 2.5% today. alan valdez, you've been buying on dips lately. you buying this one yet? >> we're not buying this yet. maria brought up a great point. we're seeing with our investors, maybe, usually bad news for the economy, good news for the market. but today, we get a lot of calls that maybe things are changing, maybe the feds are running out. but the news coming out of washington hasn't been that good, the ism number wasn't that good. unemployment number today, even though it wasn't horrible, wasn't great. but if you look at the numbers last month, 75% of those numbers were in the service industry like walmart and mcdonald's, not that there's anything wrong with those jobs, but they don't pay. >> this is going to be a long, drawn-out process. you're not going to see rates spike tremendously overnight,
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whereas it becomes a real, competitive situation using equities. let's say we get a bad jobs report on friday. do we see the whole thinking change again that, the fed cannot possibly be down. >> i don't think the fed's done. but that's a good point. i think friday sets the tone for probably the rest of the summer, although, four weeks, we had the end of the quarter, the end of the half. that's going to be interesting. but that jobs number this month is going to be very interesting. >> here's how we're parsing the beige book today. last month, beige book said that the economy was moderately growing. today, it said, modest to moderate growth. and the addition of that word "m "m "modest," everyone thinking, things are starting to slow down. but as you were saying, the fed is running out of bullets right now. what more can they do to help the economy? >> you saw consumer confidence a little better, but we watched the walmart numbers. 150 million americans shop at walmart every week and they're
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trending lower. >> i want to take off and get ready for the next hour. we've got sergio ermotti coming on the next hour. few people better than that to talk about what he's seeing from clients. >> thank you. >> we have the jobs number. now, today's number was kind of soft on the private payroll. the expectations, art, let's face it, they're not as high again for the jobs number on friday. what are you thinking about that? >> i think they're going to be weak and that's going to set the tone probably for the rest of the month. you've got washington, nothing big coming out of washington. earnings are over. this is a big number for us. and you've got the feds speaking also on friday. let's see what their tone is. >> and you're not buying this dip here? >> no. >> which you've been doing for a while. >> we're going to wait until friday and see what that jobs number is. if the jobs number is really bad, we'll buy the dip. >> what would be really bad? the expectation right now is about 165,000 for the payroll. >> i'm thinking anywhere under 150, that's it. >> okay. we'll see.
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whether the fed can do remains to be seen at this point. thanks, very much. going down 218 points, off the lows of the session, but still, no two ways about it, this was a genuine sell-off on wall street today. is it the beginning of a june swoon or not? that remains to be seen. stay tuned. the second hour of the "closing bell" coming your way right now with maria bartiromo. i'll see you tomorrow. >> and it is 4:00 on wall street. do you know where your money is? hi, everybody. welcome back to the "closing bell." i'm maria bartiromo on the floor of the new york stock exchange. a big sell-off for stock prices. investors growing more concerned about a june swoon. take a look at how we're finishing the bad day on the street today, at the lows of the afternoon, with the decline on the dow of 216.5 points, just 1.5% lower, finishing below 15,000, 14,961, is how the dow is settling out tonight. nasdaq down in the double digits to the tune of 43 points on


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