The dow is down 36 points. Were off the lows of the session, and were keeping a close eye on the yield of the 10year note, which has been approaching 2. 9 , which traders keep telling me could be a negative trigger for this market. Thats the big issue, schbt it, 2. 9 on the soyear. Volume on the low side. No surprise. Were into august, end of august. Target, j. P. Morgan, though, the worst dow performer. The government is reportedly looking into the firms hiring practices in china. Is j. P. Morgan in the administrations cross hairs forever now, and if so, we will have analysis. And facebook may be redfaced today because the Facebook Page of mark zuckerburg, yes, the Mark Zuckerberg, it was hacked. If his page isnt safe, is anyones . Its yet another blow to internet privacy and security, and well have much more on that story still to come on todays program. Scary stuff. Lets check the markets as we approach the final stretch. The final hour of the day, the Dow Jones Industrials average near the worst levels, down 41 1 2 points,. 25 lower at 15,46r 39. The nasdaq, also looking at losses, fractional move. Lets look, down a fraction on nasdaq. Even though its the lows of the day, were still looking at just a modest move. 3,602 on nasdaq. S p 500 has a similar chart pattern as we approach the close. Down about 6 points,. 33 , bill. Turn out the lights stocks so far not able to mount a comeback following the markets worst week of the year. Bob pisani living and breathing the action as he always does here on the Trading Floor of the new york stock exchange. Hows it looking here, bob . Reporter i was hyperventilating earlier, because put out the 10year, as we hit 2. 9, getting close to the 3 late in the day. I said, huhoh, here is lal trouble for the stock market. Put the 10year up here. But believe it or not, the stock markets held up pretty well. I know were at the lows for the day. The declines show the dow here pretty modest considering 2. 9 . A lot of people drew the line at 2. 8. We went right through it. Some indifference on the stock market. Not a bad thing necessarily. Interest ratesensitive stocks are taking it on the chin again today. Its been ugly overall for the reits, the utilities, the telecom. Look, the s p is down 2 . Show us the interestrate Sensitive Group for the month. The s p down 2 . 8 decline in reits, 5. 5 in utilities, 4 in telecom. Thats where the damage is. When is somebody going to say bonds are starting to look attractive . Heres the lqd. Its down 10 in the last month. This is the biggest Corporate Bond etf out there. Today, the yield is 4 on this. 4 . Now, im sure theres Corporate Bonds individually yielding 5 with durations not too far out there. Its starting to look attractive. Thats at least my opinion. Im waiting for somebody else to start saying that. I think bonds are poised to do well after the september 17th fed meeting. A lot of people seem to feel that way. If bonds are being sold, heres a question people are asking, if bonds are being sold and stocks are being sold in the United States, wheres the money going . A lot of people have been putting money into europe in the last couple of months, but look, europe is starting to look topee. It topped out in the middle of last week. The big question here is, where is the excess money going to be going, and a lot of people say sidelines, into the cash situation until the fed makes its pronouncements. Guys, back to you. A good point, bob. The last time we were looking for the money, it ended up in money markets, savings accounts. Joining us to help break down the day is kevin and rich and our own rick santelli. Gentlemen, good to see you. Rich peterson, lets talk earnings, when we were together the last time. You said maybe we could see things better than the overall expectations. Were decelerating, arent we . Thats correct. If you look from the Fourth Quarter of last year, we did over 7 on the s p 500. First quarter, a little over 5 . Currently now were 95 of earnings season, about 4. 8 . Now you look ahead to the Third Quarter numbers, we just broke through the 4 level. Expectations are for 3. 9 Earnings Growth in the Third Quarter. If you look back in may when the 10year was as historic low of 1. 7, expectations were for over 7 . Right, right. So they have come down. Do we know why . Well, obviously concern about the economy. The fact if you look at the retailers, having proper earnings from home depot tomorrow, lowes on wednesday, get the gap on thursday. Is the consumer really, you know, tapped out . You look at the Housing Market. Half of the purchases are all cash. Coming from investors rather than the individual. And all of this as Interest Rates continue to rise here. Rick santelli, i mentioned earlier, you know, various traders say to me, you know, if we hit 2. 9 on the 10 year, that could be a negative trigger for the stock market. Do you buy that, or what do you think is going on here . Well, im not using words like negative and positive. I just look at it as quite simply that the bottom of the food chain with regard to any business is the cost of capital. And the cost of capital in the u. S. Economy, indeed the global economy, is getting more expensive. And its going to extract a price, period. End of story. Its not good. Its not bad. Its just the way it s so i think were at that point where Interest Rates have moved, but it hasnt really filtered there you to answer that question. But it will. And theres a bit of nervousness attached to it. And whether youre a big houser believer or not, whether youre watching the corporate side of housing or not, Interest Rates moving higher is going to take a toll. Yeah. And today, traders werent even looking at 10s as much as they were 5s, bill. That part of the curve has been rather well behaved considering the steep ing. Fineyear note yields if they close above 1. 61, they will have taken out the july 5th high that equated to 274 in 10s that brought in the second wave of selling over the last week and a half. So the question becomes, kevin, if Interest Rates are ticking up, you have earnings ticking down, obviously the corporate sector, even though it has all of the cash, theyre not generating the Earnings Growth that we would like to see at this point in the recovery. Can the fed really step away in september or begin to step away . Well, i think theyre going to have to. But the key is going to be what happens with Earnings Growth. Because weve had a big move up in stock prices here. Weve had 100 plus move since the bottom. Weve had a 15 , 20 move this year. The United States has been the place to be with money, equity markets has been the place to be with money. Theres not been a competing rate of return in the bond market. Rick is absolutely right about that. But its interesting to note that since we began talking about tapering back in the spring, the equity markets have moved higher, not lower. So it looks like investors are looking for whatever kind of return they can get. Theyve crowded into the equity markets. And now, as we move into september where we have not only the taper, but remember in october, we have a budget debate thats coming up, theres the potential for more shortterm volatility. Long term, youre Getting Better earnings yield than bond yield still. In the near term, then, kevin, is there any reason to buy the stock market right now . I think it depends on your time horizon. Long term, youre fine. Better prices, better entry points, you wait. Back in the spring, we took a li little bit of equity risk off the table. Shortened our bond portfolios focusing more on credits not treasuries, so there are probably better entry points short term, but dont miss out on the bigger picture, which is the u. S. Economy continues to expand. And that when you look around the world, we are actually in a much better place where theres been some deleveraging in the private sector and Balance Sheets are looking better. One of the big issues, i think, bill, are the emerging markets. Thats really where the weakness is. I spoke with john chambers, you know, last week. Right. Cisco ceo. Featured an article in usa today. He said thats where his concern is, not the u. S. , not europe, but emerging markets. 50 of the worlds gdp, according to him. Plus, europe hasnt gone away. Were still seeing headwinds with the banks there. And also the fact, the m a activity, very robust in the United States. But overseas not the case. All right, everybody, thank you so much. Thanks, guys. Thank you. See you later. Were in the final stretch of trading for the day. The dow is under pressure. At the lows of the day, down 48 points. After the break, well talk to the mayor of richmond, california, a very interesting story. Her controversial campaign. Shes threatening to impose Eminent Domain on various properties in richmond under water. She wants banks to sell richmond the mortgages on those properties at a loss. Lets just say so far the banks are not being receptive to that. Well get her side to the story coming up in a moment. Can you believe its been nine years since google went public . Remember the big deal they did so different than other companies, the shares are up 925 . Since google went public. Well take a look at what the next nine years may bring. And Mark ZuckerbergsFacebook Page hacked. Yes, the founder himself was hacked. What else can be hacked on that site . Well find out later on closing bell. Right now, 7 years of music is being streamed. A quarter million tweeters are tweeting. And 900 Million Dollars are changing hands online. Thats why hp built a new kind of server. One thats 80 smaller. Uses 89 less energy. And costs 77 less. Its called hp moonshot. And its giving the internet the room it needs to grow. This is gonna be big. Hp moonshot. Its time to build a better enterprise. Together. Welcome back. In detroit, its speak now or forever hold your peace. Today is the deadline for written objections to detroits bankruptcy filing. Wdivs rod maloney is in the motor city with whats on the line. Rod, good to have you. Reporter thank you, maria. Im glad to be here. You know, its one of the things where tonight at midnight, anybody who objects to the bankruptcy filing by the city has to do that. So, in fact, this morning, a large group of detroiters got together out in front of the Bankruptcy Court here, from the National Action network, reverend al sharpton organization, and they started out filling paperwork and submitted it to the Bankruptcy Court today. It showed up in the filing. Along with them were a lot of other creditors looking to try and derail this process. And what many people dont understand about municipal bankruptcy is that you cant just file and then you are in bankruptcy. It is a qualification process. And so, what theyre doing here is theyre making their objections known to the judge, telling him that they dont think this is a right or constitutional process. In fact, the afscma union says its illegal up and down the line. Essentially what theyre saying is there should not be a bankruptcy filing. Now, the city has filed, and there will be a hearing on october 23rd. Theyll start what amounts to a trial for the qualification process. Its up to the judge to decide whether the city is, one, insolvent, and, two, whether it met the base criteria for what it is they have to in order to be in bankruptcy. One of those things is whether they negotiated in good faith or not. The unions are saying the city did not. The city says the unions would not. And so, there are a lot of things that have to be sorted out in all of this process. And so, thats what the judge is going to do come october. But today is the day you have to have it in. And weve been watching the filings, and so far, there have been roughly 100 objections filed. The expectation is there will be much more in the days to come, our at least the hours to come this afternoon. Bill, back to you. All right, thank you very much. Now, as detroit finally confronts bankruptcy, the city of richmond, california, is going to extreme measures to avoid a similar outcome. Its a fascinating story. It is. The mayor wants to use Eminent Domain as leverage to force banks force banks to sell the citys troubled mortgages at a loss. If the banks dont agree to a sale, and so far, they are saying they dont have the authority to sell these mortgages, now richmond says it will seize these homes through Eminent Domain, rewrite the loans with more favorable terms, with the help of financiers theyve lined up, to allow residents to stay in their homes. Of course, that would continue to mean they could pay property taxes and the like for the city, which is suffering because of all of this. Some of the banks are now suing to stop that action, including wells fargo, a bank that the mayor tried to meet with and work out a deem with last week, but she was rebuffed on that. Joining us now with more is cnbc exclusive is richmond, california, mayor, gayle mclaughlin. Thank you very much for joining us. Thank you, maria. Glad to be here. So wells fargo declined to meet with you last week. In a written response, they said they dont have Contractual Authority to sell the private loans to the city. Why go after them and other banks if theyre basically telling you they legally cannot change these loans . Well, frankly, richmond has hit been hit really, really hard by this economic crash. We have over half of our mortgages in the city under water. And we have nearly 1,000 homes in foreclosure last year, and many more coming forward this year. Lots millions of dollars in Community Wealth has been lost, and thats last year theres a lot of wealth thats been lost across the country, by the way. Everybodys feeling it. Right. Yeah. Right. And frankly you know, theres another side of the story, madam mayor. Sure. The banks say they dont have the authority to sell these. I mean, a lot of these mortgages were put through that cuisinart and sold securitized and sold to investors, like Pension Funds and others who bought these mortgagebacked securities. Theyre the ones who would have to sell. And they are saying if these assets can be seized, that could kill this mortgagebacked securities market, which has been there to provide liquidity for the Housing Market for a long time. So by implication, if youre successful and other cities follow suit, you could do a lot of harm to the mortgage industry around this country. What do you say . Well, frankly, that is to restrict loans or to restrict funding by way of loans and mortgages to people in cities like richmond is against the law. And we would certainly fight any attempts to do such such type of actions. There are parties that are responsible and can sell these loans to the city of richmond at fair market value. Were asking were not asking them to give them to us. We have a thirdparty independent appraiser that is providing the amount for the fair market value, and we call on the banks to not stand in our way. They caused this crisis. They presented bad loans, troubled loans to our community, and now our neighborhoods are devastated. You know, theyre going into further devastation. More and more problems are being created. More and more money the city has to spend to address these problems. Right. So we call on these banks weve called on wells fargo to provide us with a meeting. I wanted to simply meet with them. They were unwilling to do so. We still call on them to do the right thing, and not stand in our way. This is a devastation to workingclass families in richmond and other cities. Were these people that took out the loans coerced to take the loans . You know, the banks will say, look, we they were under favorable terms at that time. Conditions have changed. And now, the investors who hold those mortgages are receiving the payments that they were promised when they bought them. Youre asking them now to take a loss simply because these people found themselves in homes that are under water through you know, no blame of the people who invested in these mortgagebacked securities. You said they were forced to take the mortgage. Well, frankly, that isnt true. These banks knowingly sold these bad loans to our community when they could have sold them other loans. They provided this the homeowners trusted these bankers and these brokers, and what happened was they sold them bad loans. Loans with adjusted rates and loans that had, you know, principal ballooning, coming forward, this is what my community predominantly people of color are suffering from. This is the kind of bad advice they got. Whats your plan b . The banks are saying we cant force this. This is illegal to be forcing this to happen. Theyre suing to stop this Eminent Domain. Whats your plan b if this doesnt work . Well, first of all, we have not we again are asking for the voluntary sale. We have not made any motion yet, although we are keeping that as an option we have not yet done anything to Access Property by way of Eminent Domain. We believe as a public purpose to help our Community Recover from this housing crisis, to help our neighborhoods stabilize, to help our local economy what if Eminent Domain doesnt work . We know you want to help. But whats the plan b here . Well, our plan is to continue to move forward in this legal direction, to continue to require and push forward on the banks either outside of court we hope the court throws this out. If not, were willing to bring were totally happy to bring this into the courts system and to, we believe the law is fully on our side. Two questions, madam mayor. Weve got were never we never have enough time on television. Let me ask you this. Are you stretching the spirit of Eminent Domain . I mean, usually, this is when you want to build a freeway or you want to build a library, or you seize property and youre able to do that. This stretches the boundaries of that. I mean, down the road, if youre successful and youre able to get these mortgages sold you know, bought back at a discount, which is what youre ask, down the road, if anybody finds themselves under water again, cant they just walk into city hall and say, madam mayor, i want my mortgage bought back bailout. Yeah, why not down the road . Right now, these loans are at risk of default. The investors will get nothing. Were giving them fair offering to give them fair market value. Eminent domain has been used for lots of purposes, including Building Professional sports fields. I think stabilizing neighborhoods is far more important. I think stabilizing families and allowing a city that is struggling with all of the problems associated from this crisis that the banks caused is totally an appropriate use of Eminent Domain, and so do scholars and attorneys throughout the country. We have a statement from wells fargo at this point. We hope the city of richmond reconsiders its proposal, returns to working with lenders in their efforts to help as many homeowners as possible avoid foreclosure. Their plan does not accomplish this and only disrupts the flow of private investment in homeowners. Doesnt it disrupt the potential flow into home mortgages . What i say to wells fargo, work with us, for solving a problem that you created and were not able to solve or unwilling to solve. We call on you to solve this crisis. If you cant, let us solve this crisis. All right. And we need to put the focus on main street instead of wall street for a change. That should be the priority in this country. Madam mayor, were so glad youre with us. Thank you for joining us. Appreciate it very much. Thank you. Thank you so much, maria and bill, i was pleased to be here. See you soon. Thank you. You bet. We have a breaking story. Lets get to dominic. Whats going on . Lets look at whats happening overall with amazon. Com, because if you look at their website, youre not going to see anything, because theres still an error message right now. Thats what youre going to see if you go to www. Amazon. Com. Oops, were very sorry, the site is down. It will be back up very soon. Its unavailable while we make improvements to service. Now, its not just the website. Its also any mobile app. If youre on your ipad or another tablet application or youre on your smartphone, its basically down throughout. So its not just the website. Its also all of the mobile apps. So this is at least for right now, appears to be a Service Disruption while they make some improvements, as they say, or something else. But for right now, you cant really see anything on amazon. Com. Maria, bill, it is down. Well continue to monitor this. For more details as it becomes available. But for right now, like we said, no amazon. Com, no shopping happening there. All right. Here we go again. Thanks. We have 35 minutes before the closing bell sounds for the day. We have a market under pressure, down about 41 points on the dow. Believe it or not, today marks nine years since googles ipo. Remember back then they said it was priced too high, theyre never going to make any money with the search thing . It was at 85. If you got in then and held on, youre up a whopping 900 . When we come back, well hear from somebody who says the best days for the stock are still to come. Amazing. Then, more and more retailers are tracking your every move in their stores, making a lot of money as a result. Is it all coming at the expense of our privacy . Later on closing bell. 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This is the pursuit of perfection. Welcome back. A big day for google. Celebrating nine years since going public. The stock has soared more than 900 with only nine s p stocks outperforming, three being priceline, apple and netflix. Almost a decade later, is google still a good buy for the portfolio . Were talking numbers on google. On the technical side, carter wirth, chief market technician at oppenheimer, and david lutz, managing director and head of etf trading. Gentlemen, great to have you with us. Thanks, maria. David, kick us off here. Google experienced an outage last friday that lasted a couple of minutes but took out 40 of the worlds internet usage. It showed how reliant internet traffic is on google. Can anybody challenge that . I think its going to be really hard for anybody to challenge that, maria. Google is a household word. Its in the dictionary at this point. It will be difficult for consumers to break free from going to google. Com. From an owning perspective, right now is a precarious time to be owning google. And one of the reasons why is because like Everybody Loves using the search engine, Everybody Loves the stock. It is the most overowned Hedge Fund Stock right now, over 157 hedge funds own google at the end of the second quarter. And you know what . This is a real precarious position that apple found itself in late last year when all of a sudden there was a big rush to the exits. And you know what . Also, google might be at risk because of apple, maria, and im long apple computer. Theres a Big Hedge Fund trade thats been going on for the last year and a half, where hedge funds have bueen buying apple and selling google, and that reversed, that started towards christmastime last year. During that time, google outperformed by 75 . You know what, about a month and a half ago, we saw this whole reverse, maria. Right now, apple has been outperforming google by almost 40 in the last 4 1 2 weeks. The reason why, a big product refresh is coming up. You know what . Product refresh for apple, thats absolutely like qe to the stock market t will get it running a little bit. But theres one thing a lot of the professional traders have been paying attention to, product refresh es, theyre a typical sell the news event, so if apple can stay here, theres good prospects for owning the stock. Lets look at the charts. Carter, what do you see in terms of technicals . Its quite elegant. A well defined uptrend. When it gets ahead of itself, it has nice pullbacks and one can see the trend line its been sort of moving along over the last year or two. And it never gets, again, either too far ahead of it, nor does it ever stall to the point where its breaking its trend. Then, whats really important, frankly, you look at the longterm chart and how google just this year was able to exceed its 2007 i and high, and in many ways, were hardly above that high, we like apple and google, too. Theres just nothing wrong here. And in terms of overowned or underowned, there are sells on the street in the name, and we think theres a place for all sizes and types of players in a name like this. All right. Good info, guys. Thank you very much. Well keep watching it. Well see you soon, gentlemen. Thank you. Thanks, maria. Heading toward the close. 30 minutes left here. Were down 50 points. And now were sort of on 15,000 watch. I was looking at a statistic here, the last time the dow closed below 15,000 was back on july 3rd, on the holidayshortened trading day. Well keep an eye on that, even as the 10year note heads toward 2. 9 , whether or not that triggers something well find out. The president gets back from his vacation. Whats the first order of business . Pushing regulators to get moving on his wall street reform bill, doddfrank. So should the banks be worried . Well have a live report coming up. Speaking of the financials, authorities are looking into whether j. P. Morgan tried to win business in china by hiring children of key government officials. Really. Coming up, well hear from somebody who says thats all part of doing business in places like china and the other country, and they wonder if theres another reason for singling out j. P. Morgan. Thats coming up. Ive been doing a few things for a while that i really love tdd 18003452550 playing this and trading. Tdd 18003452550 and the better i am at them, the more i enjoy them. Tdd 18003452550 so im always looking to take them up a notch or two. Tdd 18003452550 and schwab really helps me step up my trading. Tdd 18003452550 theyve now put their most powerful platform, tdd 18003452550 streetsmart edge, in the cloud. Tdd 18003452550 so i can use it on the web, where i trade from tdd 18003452550 most of the time. Tdd 18003452550 which means i get schwabs most advanced tools tdd 18003452550 on whatever computer im on. Tdd 18003452550 its really taken my trading to the next level. 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Theyre citing weaker Pricing Power for the iron ore wells struggling to control costs at some facilities. And apache energy, analysts are downgrading the shares to a hold from a buy rating on concerns about civil unrest in egypt. Nearly a fifth of apaches output comes from egypt, and about a quarter of its cash flow. Also, shares of Cobalt International energy are sinking today after the company said that it didnt find any commercially viable source of oil in one of its wells in the gulf of mexico. Cobalt said the results are disappointing, but that it remains optimistic about other assets in the region and, of course, one quick update here on whats happening with the financials. Remember, they are one of the worstish performers in the sector today. Jpmorgan chase, the single worst performing stock in the dow jones, missing a pro by u. S. Regulators. And i want to end on one thing. If you look behind me right now, or go to amazon. Com, you will see that that website is back up and running. Im also told that the mobile apps, the tablet and smartphone apps, also up and running, as well. So, maria, a brief outage for amazon. Com. It was down, but now it is back up and open for business, maria. Back over to you. All right. Thank you so much, dominic. Think of all of the people that had to go back to work. Because they had no they couldnt buy anything on amazon. This is true. They had to go back to their own inhouse computer. Interrupt your job again. Its been three years since president obama signed the doddfrank financial reform bill into law. The president hat gotten back from his vacation and immediately met with regulators today to push to speed things up. John harwood at the white house with the details. John, what can you tell us . Reporter maria, the meeting just broke up, it lasted over an hour. I spoke with mary jo white, gary gensler, as they walked down the white house driveway out of the complex. Their description matched what the administration had said going in. It was a pep rally by the president to encourage regulators to finish the work. Fewer than half of all of the regulations have been drafted. Mary jo white said top priority is the volcker rule. This is just one of the elements on the president s economic agenda this week. Hes also going to be giving speeches in upstate new york later in the week to push his vision of a middleout Economic Growth agenda. And the president also, of course, is going to be working on the selection of the next fed chairman. Ben bernanke, who atoetended th meeting, this will be one of the last times he comes to the white house, because the president has to choose among janet yellen, Larry Summers and the other finalists that hes got. So this is an effort by the administration to keep progress on one central element of the president s agenda, guys. All right, john, thank you so much. With the president making this his first order of business after vacation, should the banks brace for more and harsher regulations sooner rather than later . And are they ready . With us is elliott, ceo of hightower. This is a classic situation of either too many cooks spoiling the broth or when you try to be too many things to too many people, you end up being nothing, right . I think one of the key elements here is that the president made this a priority coming back after vacation, and he established that he needed all of the people in the room to speak to and to push forward the agenda. The irony is that only about 20 of doddfrank has actually been implemented. Right. Were still arguing about the fiduciary standard which is supposed to be one of the key pieces of the legislation to protect the individual investor. So i hope that that group that met today had on their list resolving the fiduciary duty that stands up for the individual rights of the investors and protects them the way its supposed to. So what do you think would be the toughest result in terms of what gets implemented for the banks . Is it, you know, putting the derivatives piece of business on exchanges . Is it capital . Is it too big to fail . Volcker . Or the volcker rule. What is most important for you, and impactful for the banks . So thats a couple of questions if there, so let me answer the one that i think impacts the folks that are watching the show today, which are the individual investors who are still concerned, and frankly confused, about whether or not their interests are being properly protected and represented. I think theres a lot of complexity inside of doddfrank that will create complexity for the big banks. At the end of the day what were talking about here is protecting individuals who have their Retirement Funds or have their dollars with a Financial Advisor that presumably should be operating with their best interests. How do you do that . Well, i think the fiduciary duty is the single biggest topic visavis protecting individual investors, and frankly mitigating a lot of the fallout from what happened in the credit crisis where individual investors were not particularly well protected. You know, we had barney frank here recently, and he pointed out how, you know, anecdotally we hear more and more people saying its tougher to get a loan these days, whether its for a mortgage, you know, any kind a smallbusiness loan, whatever it is. And mr. Frank said, let me get this straight. Banks arent making loans because they worry that people cant pay the money back . That was the whole intent of doddfrank. I mean, it has slowed things down in an important part of our economy, and do you think that was the spirit of doddfrank . No, i clearly it was not the intent of doddfrank to put brakes on the economy. I think whats happened, though, is you have a bunch of very complicated topics. Some of them will make the business of being a bank more expensive, and perhaps more cumbersome. But i think one of the key elements that at hightower, we built a business around solving for you have to have a business thats lined up both to make money for the business and its shareholders and at the same time not compromise doing whats in the right interests of the client. I think many institutions are still struggling with how do they generate earnings for shareholders and at the same time not compromise doing whats in their clients interest. That continues to be a major a major challenge facing our industry. Can they really implement volcker rule when you cant even they cant even write it . I think thats a great point, maria. If you look at the vij nal volcker rule, it was a handful of pages. It turned into this extremely complicated, very long document that as it sits today, im not even sure people that were looking at the volcker rule when when it first came out, find the volcker rule in the current version thats before the regulators today. All right. Thanks so much. Appreciate your time today. Thank you. My pleasure, maria. Nice to see you. You, too. Were in the final minutes of trading. Were in the final 20 minutes. The market had been down. Were certainly at the lows of the day here. When youre shopping, do you ever feel like youre being followed . Some retailers like nordstroms tracking your every move in their store all in the name of a better Shopping Experience. Who knew, right . But the price may be your right to privacy. We have that story coming up next. Speaking of privacy, facebook allows users to let their friends see their pages, right . But somebody who is no friend to Mark Zuckerberg has hacked into his Facebook Page. So is anybody safe on facebook . Thats next. My mantra . Trust your instincts to make the call. To treat my low testosterone, my doctor and i went with axiron, the only underarm low 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. Women, especially those who are or who may become pregnant and children should avoid contact where axiron is applied as unexpected signs of puberty in children or changes in body hair or increased acne in women may occur. Report these symptoms to your doctor. Tell your doctor about all medical conditions and medications. Serious side effects could include increased risk of prostate cancer; worsening prostate symptoms; decreased sperm count; ankle, feet or body swelling; enlarged or painful breasts; problems breathing while sleeping; and blood clots in the legs. Common side effects include skin redness or irritation where applied, increased red blood cell count, headache, diarrhea, vomiting, and increase in psa. Ask your doctor about the only underarm low t treatment, axiron. In a world thats changing faster than ever, we believe outshining the competition tomorrow requires challenging your Business Inside and out today. At cognizant, we help forwardlooking Companies Run better and run different to give your customers every reason to keep looking for you. So if youre ready to see opportunities and see them through, we say lets get to work. Because the future belongs to those who challenge the present. Welcome back. Retail Security Cameras arent just being used to prevent theft. They are also now being used to customize your Shopping Experience and boost sales. Boy, theres a euphemism if i ever heard it. Are retailers walking a fine line between profits and privacy . Courtney reagan has the retail details for us. Court . Reporter thats right. Good afternoon to you. Online retail sales consistently are seeing donedigit growth rates, but many say the use of technology in stores, both the kind you see and the kind you dont, separates the winners from the losers. Many count nordstroms as one of the best when it comes to leveraging technology. They recently generated some controversy over a geofencing test Program Using shoppers wifi phone signals to trace movements around 17 of its stores. They tell us the test is over as planned, and also some misinformation about the technology. Nordstroms says the information gathered is for analytics and there was no connection to Security Cameras. Though that technology does actually exist and is being used by some unnamed retailers. This video from retail next shows how cameras can track shopper movements so that retailers can make changes based on observing behavior. They use it for floor plan optimization, the appeal of various products, the effectiveness of marketing and merchandising programs, or planograms or optimize the Staffing Levels and the way the staff interact with the customers. Reporter and he says he routinely sees his clients samestore sales improve by 10 or more by using these types of an l analytics. Proponents say this is the same type of information theyve been able to glean for years online. They know how long you stay on certain sites and whether you actually buy the products that are in your cart or not. They argue that the Security Camera s camera Surveillance Video is being collected and remains anonymous. Just give me the shirt i want in the color i want and the size, and i call it a day. Thats what theyre trying to do. It is creepy. You know what, can we be surprised at this . The horse has left the stable. There is no privacy on anything. And thats funny you say that, maria, because we talked to a bunch of people on the street to see what they think about it. They said, its like airport scanners. We dont really love it but its the way we have to do things. Nothing really is private anymore. People may not love it. They seem to have come to accept it. By the way, while youre here, young lady, jcpenney reports tomorrow. And this could be a busy week for them, as well. They have the ruling involving martha stewart, too. Well, so, jcpenney we know for sure is reporting their earnings tomorrow morning before the opening bell. And remember, they dont give guidance anymore, so some of the analysts estimates are all over the place. But on average, we are looking for a loss of about 1. 06 or 1. 07 on revenue of 2. 76 billion. The samestore sales number, many expect it will be negative, down around 8 or so. And we know that they told us their cash on the Balance Sheet was 1. 5 billion. They told us that when they released some of the information about that earlier on. As far as the ruling goes, the court case, we actually dont know when that is going to come down. The judge said in closing arguments that he will get it to us soon. We dont exactly know how we will get the information, and if it will be given to the lawyers as a headsup or it gets posted online and we all get it at the same time. But whatever it is, and whenever it is, it will certainly make headlines. It certainly will. Thank you, court. Reporter thank you. See you later. Thats going to be big when they finally rule on that jcpenney Macys Martha Stewart story. Heading to the close, down about 63 points. The dow flirting at the 15,000 level there. Yeah. And were coming off of the worst week of the year, last week, remember. And up next, chris is with us, and he is explaining why investors should be buying on any down days now. Thats his view. Later, well head live to egypt where the deadly violence shows no signs of easing up. Is Hosni Mubarak coming back . What . Its getting even more incredible in that nation. You wont believe the story when we come back. Announcer where can an investor be a name and not a number . Scottrade. Ron im never alone with scottrade. I can always call or stop by my local office. Theyre nearby and ready to help. So when i have questions, i can talk to someone who knows exactly how i trade. Because i dont trade like everybody. I trade like me. Thats why im with scottrade. Announcer scottrade proud to be ranked best overall client experience. Otherworldly things. But there are some things ive never seen before. This ge jet engine can understand 5,000 data samples per second. Which is good for business. Because planes use less fuel, spend less time on the ground and more time in the air. Suddenly, faraway places dont seem so. Far away. Welcome back. We have breaking news on phil falcone right now. Kate kelly has the details. Reporter thank you so much, maria. So the s. E. C. Has charged has announced, actually, a settlement with bill falcone, the chairman and ceo of Harbinger Capital Partners with multiple acts of wrongdoing to which he has admitted. This is a key change, maria. Falcone and his Company Actually admit to multiple charges of wrongdoing and also he will be barred from the securities industry for five years, which is a longer penalty than what was proposed earlier this year, which was two years, and struck down by the commission. Hes also going to pay 18 million in fines and penalties. So a very tough statement coming from the s. E. C. , maria. And theres actually some commentary here from the cohead of enforcement saying falcone and harbinger engaged in serious misconduct that harmed investors. Their admissions leave no doubt they violated the federal securities laws. You can see here, maria, mary jo white, as commissioner or chairman, rather, is trying to crack down wrongdoing in a public way. Yeah, you know, its interesting that he is admitting wrongdoing. Whats your take on the fine, kate . 18 million doesnt sound like, you know, a significant level that a lot of people were expecting. Whats your take on reporter yeah, especially when you look at the charges here, including that falcone improperly borrowed 113 million from a subsidiary of his company, and there are other charges here that he gave uneven treatment to investors and so on, and used Company Funds to among other things help pay his taxes. Agreed. Not a huge amount of money. The significance here is the number of years from which he wont partake in the securities industry, which is five, and also the admission of wrongdoing. We rarely see this, and this is something that the new heads of the s. E. C. Have said they really want to crack down on. You can see right off the bat theyre starting to get aggressive. All right. A new sheriff in town, thats for sure. All right. Lets talk about the markets. Brian bellski is with us along with chris from u. S. Trust. When last you were with us, you were saying you were getting nervous about this, you dont like it. Youre still buying the dips, right . Yeah. You like this market here . Yeah. When you take a look at the valuation metrics, everybody is talking about valuations, so getting overextended. I think when they talk about that, thats just the bounce that weve had. Weve had a big run. 18 , 20 . Now weve pulled back some. When you look at the majority of the valuations statistics, no matter how you press it, except for the actual normalized last 10 years earnings model, things are slightly undervalued. So buy the dips, looking two years out. A real dip today. Down 72 points. This is the low of the day. Should we not be reading into a 72point selloff given the fact its an august monday, volume on the light side, or does this mean something more . No, we dont think it means anything. Its a continuation of the august doldrum. I think most investors, especially on the institutional side, were behind the eight ball. They didnt see this coming. Most corrections happen when people least expect it. A lot of people are bowled up heading into august. Are we buying the sdmip we want to buy the dip a little lower because were still bullish. You have a certain level . Sub1,600, at least. On the s p . Yes. I guess youll buy what hell sell you. And it depends on what hes selling me. Absolutely. When you take a look at the next two years, you have a lot of fund flows. June, negative outflows from bond funds. First time in a long, long time. Very rare has that happened overest last few decades. So this is just beginning. I wont call it the massive great rotation. Its a trickle. It should continue. Its times like this in august when you take advantage of the days. The last time the money came out of the bond market, it went into savings accounts. You think it will go into stocks. The first rest area is savings accounts and the jump factor is back into equities when you see better economic momentum later in the year. We agree thats longer term the longterm move, we have headwinds coming in, like the budget crisis and the like that could scare people into not taking their money out of cash and into stocks over the near term. Right. A good point. Thanks, guys. Always good to see you. Well come back with the closing countdown. And some of wall streets biggest bulls have been turning bearish. Is it time to follow the lead, get out of the market . Well see if we can hold 15,000 here. And also jamie dimond and jpmorgan in the cross hairs, this time charged with hiring the children of chinas political elite. Is that the Way Companies need to do business in countries like china . A debate on that later on the closing bell. Youre watching cnbc first in business worldwide. Hey, art, with the dow 15,000 hat on. Ad of you . Ad of you . Instead we had someone go ahead of him and win fifty thousand dollars. Congratulations you are our one millionth customer. Nobody likes to miss out. Thats why ally treats all their customers the same. Whether youre the first or the millionth. If your bank doesnt think youre special anymore, you need an ally. Ally bank. Your money needs an ally. All your important legal matters in just minutes. Protect your family. And launch your dreams. At legalzoom. Com we put the law on your side. 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Peter costa, is that a trigger . I keep hearing from traders, 2. 90. You dont want to hear that, or the stocks go lower. Absolutely. You hit 2. 90 every time you see why 2. 90 . Its a psychological thing. You look, as the yield goes up, every time it hits there, you see the market sell off. I dont think youre going to see it today. But i do think were going to see it at some point. You dont sound like youre buying right now. No, not yet. Give me lal room. All right, peter, thank you. That will do it for the first hour of closing bell. Were going out down 65 points. Looks like we will stay above 15,000. We have jcpenney earnings coming out that. Could set the stage for tomorrow. Stay tuned now for the second hour of closing bell with Maria Bartiromo. Ill see you tomorrow. [ bell sounds ] and it is 4 00 on wall street. Do you know where your money is . Hi, everybody. Welcome back to the closing bell. Im Maria Bartiromo on the floor of the new york stock exchange. The market in the red again today following the marks worst week of the year last week. Take a look at how were finishing out on wall street with things deteriorating by the close here. Even though it was light volume on this summer monday, down 72 points on the Dow Jones Industrials average, setting at 15,008. The last time the dow closed below 15,000 was the weekend of july 3rd, the long Holiday Weekend before the beginning of the summer. Nasdaq down about 13 points