,. >> 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 down, and the selling has picked up in just

the last hour so. 14,750. down 358 points. new session lows every few as you can see, the s&p and the nasdaq in the negative as well. we were down 1%, 1 and a half%. at 2% in change. all three major market averages, and we will be on this throughout the hour. stay with us. a few stocks. i don't want to bring you down too much. a few stocks that are bucking the trend. a higher bike almost 7%, as you can see. a nice change. this stock is higher by one and 1/4 percent. western alliance, 14 5/7. about one-half percent gain. we're looking for good news in this sea of red as we go into the close. also, we talked about this yesterday. the dollar climbed to a 2-week high against major currencies overnight into the trading session here in this country. analysts say they expect the

dollar will see volatile on moves in the coming weeks. investors try to let gays cells of the economy, not just the u.s., but the global economy. a lot of news, and assault team coverage with nicole petallides. once again standing by the new york stock exchange. a big sell-off. phil flynn at the cme tracking down the commodities, especially metals. jo ling kent is here with a very troubling story about china that we are following, but first to you, nicole. your headline please. >> reporter: to the big deal here is watching the volatility. we had a lot of 200. swings in the last 21 days since ben bernanke and his testimony may 22nd. half of those, ten of the 21 actually had 200. swings. the volatility is here and today you are obviously seeing a bigger move unusual. 350 points to the downside. cheryl: and an unusual move. that is how you would characterize this. >> reporter: absolutely an unusual move. essene the volatility of 10200,

but not 350. cheryl: you will get back to you in a moment. phil flynn at the cme. >> reporter: it is a metals meltdown. what temperature doubles milton mack probably when the fed starts talking about a brief. the dollar is soaring. metals are melting down. i don't care if they're precious metals, industrial metals off. there is no place to run, no place to hide. add on top of that the oil market is seeing a drop it has not seen in over a year or at least since last november. it is a meltdown in commodities. no place to run, no place to hide down here. cheryl: my guys. stand by. your headline please. >> reporter: facing a cash crunch that could cripple lending. rates are being quoted, but no transactions are taking place. he will take a look at how this will affect the chinese economy. cheryl: that is a story you know very well. we will see you in just a few moments. bank stocks heading lower. the financial sector overall something that we're watching. nicole petallides, of course, at

the new york stock the stage with the sec to report. >> reporter: this is a big deal to have back-to-back sell-offs. the financials are selling off. racine bank of america down two and a half%, down three 1/3%. the major averages are down over two full percentage points. you can -- you know, down over 300 points. give 100 to ben bernanke, 100 to the credit crunch in china and the latest headlines about the imf, not giving them money back to greece now, so you have a lot of things in the air. cheryl: that headline. that's something that they're talking about right now? >> reporter: a stronger dollar and the news read don't get the funding right away. so we're talking about. the biggest deal, but it does not help the situation when you're selling off. this does not mean that this is the worst ever. is to be the greatest ever where you pick up your favorite company. cheryl: that's a good point. you sound like charles. let's get right to our floor

show. we have trader standing by at the new york stock exchange and the nymex. standing by at the new york stock exchange. pick up if you will just for a moment what nicole was talking about, the imf headlines, potential changes in greek funding spirit is that something the factors and today? >> that is is kind of the icing at the cake. clearly the of the nation yesterday out of washington, with some of follow-through. we have had no real positive headlines that are going to help believe this market at this point. what is going to be interesting to see is if this followthrough continues. we will mark off yesterday just as of 1-off. we're seeing significant seeling today. if we see it tomorrow then i think we should start to get worried. let's not panic just yet. tomorrow actions are inspiring. we have been s&p rebalance that will occur tomorrow. we are going to see a lot more buying coming into this market tomorrow and hopefully that volume will help dampen some of the volatility that we have been seeing. cheryl: we are seeing volatility

for the year right now. potential highs for the year. 2013. does that trouble you, or is at par for the course considering that we are in the summer? >> it is something we should be expecting. a lot of traders have already put that into play and have already had that trade on that tape at this point right now. cheryl: i want to go over to the nymex. i know, if you will. certainly with of the action that we have seen between treasury and the dollar, a big effect on the oil contracts. >> reporter: down sharply, but back to the mid-90s which is a healthy level. reset here for quite awhile. as jonathan before you mentioned, not too concerned just yet. we kind of maybe get a little bit of an over reaction from the fed. a little bit more concerned, little bit more fear in the market. volatility picked up with that and we have some great down below 93, 9325 and some of those moving average is down there for it really starts to be more of a

trend. we did have a solid run-up in crude oil for a little while, and now we are having a bit of a correction, so we will see how far this actually runs. cheryl: direetion, time to mike and opportunity. you will go with that theme. tillman, thanks to both of you. appreciate it. now we were talking to fill just a moment ago about commodities, especially metals suffering their biggest sell-off in the year and a half on really this data coming in a china. bleeped chinese data and, of course, the federal reserve plan to reduce stimulus efforts. we heard from mr. bernanke yesterday. let's bring back and phil flynn. middleman -- mill not down. you're going with that the right now is. >> it has to be, and there are a lot of reasons for people to be dumping this off. even if you just had a margin call us, you are worried about inflation, but you really cannot be long on metals right now. you look at what the fed is doing. it is really dollar bullish right now, and people, i don't think, realized. all of the market does not seem to realize that tapering is like

raising interest rates and a negative rate environment off. very bearish commodities, bullish dollar. you add to that this burgeoning credit crisis that you have, polity in china right now if. china, of course, your biggest consumer of these precious metals. take copper. we saw the biggest dropoff in the london metal exchange copper -- the biggest bill in many, many years. you add to that the physical demand that is coming out of asia, and that drives up another reason longmeadow's does as well. cheryl: somewhat testy about copper. i am wondering if there is another side to this story. one of the things that we have seen with the demand in copper, you and i talked about that. housing continues to remain strong, the copper contracts will pick back up and whoever is buying it today is going to make some money in the future. >> you know, i still believe that this is going to have to come from stabilization in china. the u.s. market is not the use nearly as much chopper -- kopper as they used to. the big demand has been coming from building factories and

things like that. i am not sure that a rebound in housing is necessarily going to do that, and another reason why it will not is the starter the housing market the faster the tapering, the faster the tapering, the stronger the dollar, and that is going to put more downward pressure on price. cheryl: before i let you go, all those papers underneath your arm, a very busy trading day, a lot of contracts bought and sold. >> one of our best days in a long time. the cme stocks is one of the brides stocks today. we are up. they all wanted me to tell you that. at least it was. cheryl: a national audience. you tell them that. phil flynn at the cme. what a day, the new york stock exchange. all right. as pick up again on this chinese news, chilling news from banks in china. as the country's credit markets are beginning to a freeze. jo ling kent has more on how the world's second-largest economy is trying to dodge defaults until -- this news sending soccer is your town. >> that's right. overnight in china and now you're on wall street.

basically short-term lending rates at record highs in money-market rates surging after the people's bank of china, their central bank which reports to the central communist party refused to pump more cash into an already strained financial system. basically trying to punish speculators. now, rates have been soaring of the past two weeks. banks started to react. basically afraid of lending to one another. does that the short-term cash flow, they are less kind of up in arms. they could defaults. and now in china messina rates are being set at high levels, but no transaction is happening. this is a very risky move given that the chinese economy has been slowing down quarter over quarter. analysts who cover china say, for example, over an asset management in new york, is the central bank of china does not inject emergency cash into the banking system in the next there so wealth management products that lend money to banks in the

interbank market will start to see mass de fault. now, certainly not good news for those who are here. so basically, the central problem here is what the chinese government should do. now, they are caught in basically a dilemma and also there is an entire social move as well. new president is trying to crack down on certain types of speculation and lending. so we will stay on the story for you. back to you. cheryl: the term speculation because we have seen some speculation in the chinese housing market. and then to have the banks make this threat, so many levels of fear, basically, for the chinese economy. >> reporter: you know, is definitely jarring, but we have also seen this coming for a couple of months. some would argue even over the past year as the economy shrinks. yet more credit has been going for 20%. so, you know, it's very much this strange dilemma, but they have seen it coming. cheryl: interesting.

covering that china story. thank you. closing bell will ring in 49 minutes. housing here. but is the housing rebound on the rocks? investors fear, the fed will step back as an automatic fire of mortgage-backed securities. coming up next, we break down the threat to housing. and, it is national small business week. the small-business optimism index, hitting a 1-year high. coming up, we talk to our good friend, the undersecretary for economic growth and energy, and the environment. what he says the strength of the u.s. economy is, small business. ♪ my mantra?

ways go the extra mile. to treat my low testosterone, i did my research. my doctor d i went with axiron, the ly underarm w t treatment. axiron can restore t levels to normal in about 2 weeks in most men. axiron is not for use in women or anyone younger than 18 or men with prostate or breast cancer. won, especially those who are or who may become pregnant and children suld avoid contact where axiron is applied as uneected signs of puberty in children or changes in body hair or increased acne in women may occur. report these symptomsto yo. tell your doctor about all medical conditions and meditions. seof prostate cancer;could inworsening prostate symptoms; decreased sperm count; ankle, feet or body swelling; enlarg or painful breasts; problems breathing while sleeping; and blood clots in the legs. common se effects include skin redness or irritation where apped, increased red blood cell count, headache, diarrhea, vomiting, and increase in psa.

ask your doctor about e only underarm low t eatment, axiron. but i see a world bursting with opportunity,ople nervou i'm thinking about china,. brazil, india. the world'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 chooseshares for their etfs. ishares by blackrock. call 1-800-ishares for prospectus, which includes investment objectives, risks, charges and expenses. read and consider it carefully before investing. risk includes possible loss of prinpal.

cheryl: our power mover of the hour the stock up almost 7%. this stocking a new high after microsoft does a 180 and reverse its policy in favor of reselling used games. a big part of the business.

microsoft is falling with the rest of the market. you have to be careful, down about a dollar seven right now. as you can see, loss of more than 3%. we do have an overall market sell-off. well, there is positive data out for housing today. as existing home sales are rising to their highest level in more than three and a half years, but that is not enough to keep housing stocks are selling off on concerns from the fed. joining me now, ubs home-building analysts. this is your sector. are you concerned by the selling pressure the you are seeing today in the home building sector? >> not really. the stocks are extremely volatile al. big moves up and down of the last two months. on not overly concerned. investors are probably overreacting. when you think about what is going on in the housing market today, it is a very supplied driven phenomenon. the mix apply. for the next 12 months housing prices will be just fine.

cheryl: you may be seeing mortgage rates take time. the bond market and treasurys. pulling back stimulus. in not concerned. this is the basic question. >> it depends on your timeframe. a long guerrilla got into the recovery whether it's 18, 24 months, as the recovery spreads of the area that has been concentrated in right now this, of course affordability is a concern, but you have to think about affordability alongside underwriting. he can give mortgages in the camp. eighteen to 24 months. the income the recovery has been concentrated. concentrated among good buyers that have very good financial wherewithal, good credit scores in a very, very tight market, very, very concentrated some market where there is just not a lot of inventory. so it affects the long-term market the housing recovery.

you can sit here and say rates don't matter. of course they do. it is a question of how strong the recovery is. eighteen to 24 months out and it changes the scope a little bit, but we are still in an up market tear it -- its destiny the housing sector, the stocks themselves that way ahead of themselves. >> if you have the time frame you can buy the stocks in the cheaper through the summer. in the year end, they will remain very good. long term from the -- from a fundamental perspective the stocks are not inexpensive. another 15 to 20 percent pullback before we have more positive on a much longer-term basis. cheryl: you -- you like these songs because we have pulled teague, these other stocks that have performed so well. this is the only one that you are really favor on right now. >> and is very much evaluation call. struggling with a bit of a company's turnaround. management is doing a great job, taking time to materialize.

the results in terms of the profitability. you will see the company narrow performance and valuation to accept. otherwise the stocks are, again, they are not inexpensive at this point. there are still a expensive. these topple back, something like pulque make make a lot of sense. specific factors, but not at this price. cheryl: hundred and 7%. that is a heck of a run-up, but normally i would throw the caution now with u.s. airway a minute, that's a big jump, but after of in 2012 we have to think about future earnings. >> a lot of earnings power inherent in the business right now. abbas teeseven sector called del webb. sixty-five, 55 and older. a powerful demographic that they're falling. i think there is a lot of earnings power in the business that is not capturing the

business. even after the big one. is not attractive. but if it came down, ten, 15 percent, looking to get more constructive. cheryl: i'm old enough to remember the position. that goes back a long time. david goldberg, ubs home-building analyst. >> thank you for having me on. cheryl: the bell will ring. we now have got -- you're probably ready for the market they to be over. we have about 39 minutes to go right now. on-line video is moving toward a fast-paced easy to share platforms. all fighting to stay ahead of the trend. today facebook is playing catch-up with its is to grant video. we will talk about that coming up next. also, the market is selling off one day after the fed lays out his plans to slow down purchases, but is it just a fed fake out? charlie gasparino has that story on why easy money might not be going anywhere.

i would like to hear that. ♪ friday night, buddy.

you are gonna need a wingman. and my cash back keeps the party going. but my airline miles take it worldwide. [ male announcer ] it shouldn't be this hard. with creditcards.com, it's easy to search hundreds of cards and apply online. creditcards.com. try align. it's the number one ge recommended probiotic that helps maintain digestive balance. ♪ stay in the groove with alig

♪ cheryl: will answer iran's newly revealed video facebook stock? they showed off the new feature at the parent company headquarters just a short time ago. the updated data is available for download. the rest of the market is down. a major sell-off. this tool allows users to us record clubs agreed 57 video and customize it. the new feature comes six months. you may remember not too long ago. that was our version. according to all things, also previewing a number of unreleased features and the work. sounds like our version. the markees plunging.

you can see it on your screen. happy days and easy money are over, but it -- could that change? fox business senior correspondent. >> reporter: we should point out this is far from a plunge. this is, as i told you before. as you put it, a bins and a purge. this is pretty bad stuff. i think what we are seeing now, and i think this relates to who is going to be the next fed chair person when ben bernanke steps down, this shows that the obama economy that traders, sophisticated people do not believe that the obama economy can stand on its own. it is kind of a sort of rudderless on its own, creating liquidity by doing qe which is known as essentially printing money. buying bonds from banks and infusing those banks with cash and trying to lower long-term interest rates in the people to buy homes which is kind of what

he signaled yesterday may be coming to an end. there is of much to this economy. obamacare, higher taxes. if you think i'm being partisan, this is real. i mean, i wish -- i don't waste the economy to go to elena hand basket, but we have obama care, higher taxes. we already have dodd-frank which a lot of people think squeezes the economy and lending in other ways and causes banks to sort of pull back from a lot of businesses. this is a president to come from a physical standpoint, from this policy is basically be stimulated the economy. his stimulus plan was kind of a failure. he mentioned it himself. he laughed about show already projects. the market is now reflecting that without the money that ben bernanke said is likely to be cut off sin based upon some optics in certain numbers, i think he's more worried not about that, but as the bubbles, like so much money going to risky bonds which is happening right now that when that unwinds it is going to be really nasty

and could take out a bank or something like that. cheryl: bernanke could go back on his word. >> right. and of the is going to matter. janet yang is going to be the vice chair of the board of governors, the federal reserve. the fed has a dual mandate. she cares more about the job creation. i think teeseven a lot of other people i know think that at some point, even if bernanke is tapering and looking to end qe, she may reinstall it and may have to reinstalled because the economy is not going to be doing well. had we know she will be in it? botox to wall street executives and here's what they told me. timothy geithner is signaling to people that he does not want the job. he was a fairly prominent candid , treasury secretary, president of the new york fed. he does not want the job. you must make money in the private sector.

i should point out that his attorney has no comment on the matter. people were telling me that when you see the body language when she is with president obama, it is pretty interesting. they seem to be very simpatico. it was described to me as they finish each other's sentences, which is a little scary since the fed chairman is supposed to be not finishing the sentence of the president. is supposed to be an independent committee. that is where we're probably going. i know people think that alan blinder and liz claman engine that is a possibility. i don't know. and roger ferguson. former. cheryl: i have seen larry summers mentioned. >> yes. i think the reason is she is the least independent, the most like obama in terms of policy. dagen does not want it. and they may need it because i am telling you, i don't care what anyone says, if you look

uncertain economic indicators, we're getting better, but a lot a lot of people leaving theejob market. housing is getting better, but long-term interest rates are down. suppose the fed stops printing money suppose the fed stops printing money? you don't have a buyer's market anymore. then that part of tte economy dries up or slows down. if you throw all those factors into higher taxes, obamacare mandates, you know, higher regulations and just 2% growth, 2-3% growth, you're not talking much. >> and you wrote about it today, we should tell everybody -- >> in "the new york post." cheryl: i read it. there it was, charlie gasparino. closing bell going to ring, we have got 29 minutes to go. the fed expecting the unemployment rate to drop to 6.5% in 2014. exactly what jobs are going to come from small business? we're going to ask the undersecretary of state in a fox business exclusive. and the dow way down today. charlie has more colorful language for it. are you worried? coming up this hour, we're going

to bring in a money manager that's not worried about the pullback. he says it'll keep your portfolio out of trouble even though charlie and i are probably going to get into trouble. we'll be right back. ♪ ♪ >> geithner doesn't want it, and : traveling you definitely end up meeting a lot more people b

a friend under water is something completely different. i met a turtle friend today so, you don't get that very often. it seemed like it was more than happy to have us in his home. so beautiful avo: more travel. more options. more personal. atever you're looking for exdia has more ways to help you find yours.

>> i'm jo ling kent with your fox business brief. marisa meyers' boldest move is now complete. the purchase of tumbler also marks the internet giant's most expensive act acquisition in ten years. meyer is hoping it will bring in more traffic and advertisers. initial quality studies for the first time since 27 years ago.

chevrolet, buick, gmc and cadillac brands all ranked above average in the study. and fewer drives will be hitting the highways this fourth of july. according to aaa, 34.4 million people wil this year, down 300,000 from last year. aaa says the decrease in highway travel is due to slow economic conditions and people taking less time off of work this year. now we continue to our "countdown to the closing bell" today with cheryl casone. cherrl: all right, clearwire hitting a new high today as the rest of the market falls. nicole petallides attthe new york stock exchange, let's take a look. i have a sea of red, nicole. >> reporter: we do. the dow down 360 points tacking on to yesterday's 200-point loss. but for one brief moment, we're just going to move to wireless for a moment, because we did see clearwire stock halted on this news and then surging to new

annual high. so sprint raised its buyout offer for clearwire. don't forget that sprint already is a clearwire majority shareholder. they upped their bid to $5. they had previously had a bid of $3.40. there's another player, dish. dish network also wanted to get in there, because the wireless services market is huge, and they're both battling it out now for clearwire. so now the meeting that was scheduled to be on june 24th is being pushed back to july 8th for the shareholder vote, and that'll be key as well. now, t-mobile which was another player in this, right? if this all doesn't work out, t-mobile might have gotten in. they are up about 3%. quite an intricate story, but if sprint gets clearwire, that's good news, right? many think that would be attractive, it would bring stockholder value as well. it would have been interesting had dish steps in. so we'll see what happens here but, obviously, a story that

we're following very closely, and this as clearwire stock hits new highs we haven't seen since 2011. cheryl: story keeps playing out like a soap opera. thank you very much, nicole. two out of three new jobs in the united states come from a small business. my next guest says the strength of the economy is small business. bob hormats, undersecretary for economic growth, energy and the environment, joins me now in a fox business exclusive from national small business week in washington d.c. bob, it's great to see you, sir. this is, what, the 50th year of small business week? >> yes, it is, and i think it is an important thing to the country because small business, as you say, create a lot of jobs in this country. particularly new businesses, start-up businesses are extremely important to the dynamism of our economy and to hiring people. cheryl: bob, talk to me about the optimism that we're seeing not just in the index, but overall, because there's been so many headwinds for small businesses over the last two years in particular with bank

lending, it has been tight, credit has been tight for small business, the new health care law, that has been a struggle for many small businesses. why do you think optimism is building when these are the headwinds we've got to kind of face here? >> well, some of the things that affect it are domestic which are more in the realm of small business and treasury, but one thing that is positive is small businesses are beginning to export. a lot of small businesses now recognize that there is growth in the global economy, and they're taking advantage of growth opportunities abroad. and one of the things we're trying to do at the state department is provide assistance so that they can take advantage of these growing markets, particularly in the large emerging economies where there's a lot of growth and small businesses were reluctant to play a role or play an active role at least. now they're there, they're sending people there, and they're doing a lot of business in these countries. cheryl: what are the small business owners telling you about, in particular, payroll taxes? i mentioned the challenges of health care, but the new payroll

taxes as well. we know the consumers pulled back a little bit in the first part of 2013 because they were losing a little money out of each paycheck. what about the business owners? what do they say? is. >> they're not really talking about payroll taxes to me. i think that mostly is conversation with the treasury. they're talking to me mostly about their international opportunities, and that's really the area the state department focuses on. that's the area i've focused on. and i must say the conversations are extremely optimistic. i meet with a lot of small businesses or small business groups. we work closely with the sba, and we're finding a lot of optimism about companies that had previously confined most of their activities, their investment activities and certainly their trading, their export opportunities to mexico or canada, and now they're looking to china, india, saudi arabia, brazil, many other countries. so that's the conversation i've been having. it's very positive. cheryl: well, i'm glad it is, and certainly we should say because of your experience at goldman sachs, that was where

your focus was, with international. i'm curious of someone who is with government, was with goldman sachs, what do you tell them about creating jobs at home? the conversation still to this point, to this day is how do we create jobs here at home, good paying jobs? not service sector jobs, good paying, even white collar jobs, bob? how do we do that, in your opinion? >> some of the service sector jobs do pay well. not all of them, but certainly some of them do. i think what's very important is training and education. i've always felt that we needed to provide help to people who want to get technical educations, junior colleges, community colleges and make sure that the skills that they develop in those institutions enable them to get good jobs and fill the kinds of jobs that business withs are -- businesses are creating or businesses are going to need over the next several years. a lot of businesses are looking

to employ people, in many cases people come out of school are not trained at the kind of jobs that businesses are going to need to develop over the next five and ten years. i think that is a very important skill set that's critical to small businesses and large ones as well. cheryl: in particular in the technology sector, and that's the first thing i thought of when you were talking about education and training. >> exactly. cheryl: bob hormats, wonderful to have you on fox business. >> thank you for having me. always great to be with you. cheryl: bob hormats, undersecretary. all right, the closing bell's going to ring, we now have 17 minutes to go. about 75% of stocks on the s&p 500 are lower since mr. bernanke's comments on may 22nd, but our next guest says don't worry about the dip, and it's a broader dip. he's got some names for you to buy coming up after the break. ♪ ♪ we went out and asked people a simple question:

how old ishe oldest person you've known? we gave people a sticker and had them show us. we arned 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 much is the official retirement age. ♪ the question is how do you make sure you have the money you need to enjoy all of these years. ♪ a talking car. but i'll tell you what impress me. a talking train. this ge locomotive can tell you exactly where it is, what it's carrying, while using less fuel. delivering whatever the world needs, when it needs it. ♪ after all, what's the point of talking if you don't have sothing important to say? ♪

cheryl: investers are clearly shaken rit now. take a look at the dow, we are hitting fresh session lows as we are 12 minutes away from the close. you are looking on your screen at session lows for the dow jones industrials, 14, 732, 379 s&p as well, hitting new, fresh session lows as we've got 12 minutes to go, nasdaq also hitting new session lows. i wish i had better news as we go towards the close, but joining me now is jay kaplan, portfolio manager in principal. i asked you during the commercial break if you're bothered by days like this, and you said absolutely not. >> well, you know, we're steadfast in what we do. don't panic if you're a long-term investor, and at the royce funds, we are. we use days like this to build

positions in really good companies. if you think about what's gone on before this morning, most market averages were up in the low teens, that's pretty good right there. market averages are still up in the teens for the year, that's a pretty good year. don't panic. cheryl: you know, it's tough to say when you look at the dow, yesterday the dow was up about 15% year to date, today it's up 12% year to date. we can lose those percentage points so quickly, and i think that's what the retail investor gets nervous. what do you say to them? >> i tell them to average down. i tell them a dollar costs average. really thiik long term. in you try -- if you try and buy high quality companies and trust the management teams to kind of work through the issues, a lot of what's going on is noise. the reactions tend to be overblown, particularly in this environment. cheryl: yesterday, frankly, it was the end of the day the suckers we saw selling off were the ones that you tend to like, as you and i have spoken before on this show, consumer discretionary, industrial, things like that, utilities, those were our safe plays --

>> we haven't done a lot of utilities, and we haven't done a lot of stuff -- the stocks that have been used as bond proxies, utilities, for example, folks have been buying them for the big dividend, and i think they have forgotten those are stocks. when the markets go down even though safe havens, a little pressure. cheryl: they view that as a safe haven as many do -- we don't view them that way at all. they tend to be very leveraged, and we don't do leveraged companies. they need cap tap markets to grow. those aren't long-term businesses we want to own for a really long climb. cheryl: let's talk about some of the stocks you do like. if you're a stock picker and you're looking at a market like today and you finally say i'd love to buy apple, whatever, what would you tell our viewers right now? >> i mean, i'm a small cap smart buy, so a couple of great ideas, one would be reinsurance group of america, rga, they are an

insurance company for licenser companies. nine times earnings, below book value. you get over a 1% yield why would you wait. it's a mature business in the u.s., really steady. they're overcapitalized, their trying to do acquisitions, if they can't, they're going to buy back stock. really friendly for shareholders. cheryl: i like the word overcapitalized. apparel group. >> they're the biggest maker of coats, so if you bought a coat in the department store, very likely, it was their business. it was a one season business. they've diversified calvin kline, they don't own it, but they're really big into sportswear now, dresses, handbags, wilson's leather is their business, so it's becoming an all year round business. sixteen times earnings, 15 times probably after today, and people have come around to it's not just coats anymore, it's not

just the winter. they've done a fabulous job. cheryl: one more pick be, i do want to get to this because this is helpful on a day like today. applied industrial technologies. >> they're a distributer of products that help factories run. it's bearings and hydraulics and pneumatics and things nobody knows anything about unless you run a factory, but it's a play on manufacturing coming back to america, and if the economy is strengthening, which is part of this whole bond scare, manufacturing should be good, applied industrials should be good. again, it's over a 1% yield, it's 15, 16 times earnings, so a wonderful company. cheryl: jay, as we were having this discussion, the dow bounced off session lows. >> it must be me. cheryl: jay kaplan, a feel a little bit better. jay, thank you. all right, the u.s. government isn't the only one monitoring phone and internet usage. india also rolling out a surveillance system to listen to and tape phone calls and internet conversations, and without any interference from the courts.

elizabeth macdonald is here to explain. liz? >> good to be here, cheryl. india has a long history of violence where militant groups -- with militant groups. 2008, 166 people died in mumbai, but india is going a step further than the united states. it actually wants a code. we talked to people who are in the, basically, with, associate with the the indian government, they actually want to go a step further than what the u.s. is asking. they want to also put an official ad company headquarters in places like research in motion. now, we reached out to research in motion, they have not gotten back to us yet. but india seems to be going a step further. it wants to be able to decode e-mail messages that are heavily encrypted at places like blackberry, wants access to skype, it wants access to twitter and to google. it's sent nearly 4800 data requests to google, and it's not just security officials in india, it's also tax officials want access to this information,

and it's a real tough call because, listen, there are 866 million mobile phone customers in india alone. that's a tough market to pass up. but research in motion is saying that it will, it is all about protecting the privacy of its customers. back to you, cheryl. cheryl: liz, great story. lizzie, thank you very much. we've got six minutes to go until the bell rings. dow down 338 points. we'll be right back. ♪ ♪ [ indistinct shouting ]

♪ [ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistct shouting ] ♪ it's so close to the options floor.. [ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ all onhinkorswim from td ameritrade. ♪ cheryl: we're in the same situation we were in yesterday but for different reasons today. yesterday you had the selloff into the last five minutes of

the close, last closing of the dow taking a last moment of a hit. today we were down 80 points. we're coming off session lows in the last minutes of trading. 2:00 p.m. hour, tracy and ashley talking about, the imf making somewhat negative comments about greece, telling eurozone leaders you need to do something about the debt situation in greece. traders told us that at the beginning of the hour on the floor show. nicole has been talking for several sessions are we going to see volatility continue next few weeks. david asman -- david: you come to me. cheryl: you know much more than i do. david: people coming in this hour know a lot more than all of us do about this issue. they will tell us whether this kind of debacle will continue. it sound weird to say it is only down 332 points t was down 380.

it is improving a little bit. some people look at certain end indicators saying maybe this is an overreach on the part of the sellside of this component. we'll find out if that is true. we have it covered for you. keep it here. we start out with nicole petallides on floor of the new york stock exchange. it is a broad based selling. no doubt. it was tough to find any green on the screen here. >> all the sectors we follow in the s&p 500 had down arrows. you have had two back-to-back 90% down days that is an indication it is an oversold market. we haven't seen that since october 2011. doesn't mean everybody is buying tomorrow but certainly can be an indicator of that. cheryl: nicole, it was a big down day for commodities. phil flynn calling it a metals meltdown but those stocks were hit as well. >> we saw gold for example, 2 1/2 years low. dow was down 380 points t was a tough day here on wall street.

[closing bell rings] david: some days you hear a roar of approval when it's a down day because at least it's over. today everybody is so exhausted you don't hear, i'm listening to yelling. you don't hear any yelling. you hear a sense of exhaustion. this was an exhausting day. it tended down further towards the last couple of minutes of trading. when i came on a couple minutes ago it, was down 330. it was down 380. it has been worsened through 352. there were extra sells coming in at the last second, cheryl. cheryl: talk about percentages we had a dow going into the day was up 15% year-to-date, excuse me, 12%. it can slip away so quickly with markets. concern about the fed and other factors as well. david: you mentioned commodities. we haven't begun to talk about six, seven, eight down days on some of those commodities. what implication is that? a