downgrade. look at how we finished on the financials today. down 250 points on the dow jones, and that was on volume better than yesterday but light in terms of volume. nasdaq down 71 points, it 2.5%, and the s&p giving up 30 points at 1325. the bank downgrades expected but still dramatic for the major banks. joining me now is michael pento, and james bianco, and mary thompson, mary, set the stage for us, what should we expect for this downgrade? >> what moody's is expected to take action on is 15 global investment banks today. they're bank of america, citi, jpmorgan, and morgan stanley are some of them. two notches down on jpmorgan as well as goldman sachs. the big question continues to be what happens to morgan standly? is it downgraded by two notches or three? it was interested going into the close that volume picked up for shares of morgan stanley. but in addition to that, we'll also get moody's decision on what the reviews are of the short-term rating for these banks with the exception of jpmorgan. it's prime one, highest quality rating was reafirmed. it's the long term ones that we're looking for, and it is expected to be eminent, but financials about the middle of the pack. . the story today many traders told me concern about the global slow down as evidence by data abroad and here as well. >> let me ask you jim bianco what you would do, moody's say they were reviewing back in february saying they're facing increased funding expenses, facing rising regulatory skroout any here and that is why we're expecting the downgrade, how do you see it? >> the marketplace right now is looking at the bank stock most where different than anything else, they're down 2.3% in the bank index today, i don't want to get too worked up thinking what's happening today is all about the bank stocks. it's more about global slow down, maybe disappointment in what the fed did yesterday, and other worries in the marketplace, so this is just one of many worries right now. >> so what do you to do then in terms of the story slowing down and the regulatory environment, the u.s. unemployment numbers, the last month was horrible, do you want to be a seller or do you see value at some point? >> no, i have been a glass after full about the economy right now. i'm not looking for recession, but aim looking for slow growth. i didn't see enough from the fed to change that opinion, i think the market will struggle ag the economy continues to struggle. i would not sell down a 250 point day today or tomorrow morning, but i would not be that optimistic that we will get a meaningful rebound. >> the strategies have been short for the last week. banks make money on a yield curve, they made money on trading, and washington is killing that, and they make money in loans and a depression in europe will kill that. >> so you got, you know, 1% to 4% sell offs in major banks today, is it priced in or not? >> not in my opinion, not at all. we have all of our hopes now placed on ben bernanke who is a counterfitter and chief. in europe, the idea between mario to save europe is to buy insolvent nation's debt by borrowing money. you cannot create inflation in the long term to bring down the cost of borrowing, and you cannot continually increase the fed's balance sheet to rescue the economy. that's where we're headed in the long run. >> jim, tell me about the fed and what we heard this week in your view. did you learn anything? obviously they're going to extend operation twist, the market was not buying it very much even though we did close off of the lows yesterday. >> i didn't learn much from the fed in terms that operation twist is not doing anything. for every billion dollars they inject it lowers interest rates by three basis points. that means they're looking to lower it by eight basis points. that's a rounding error we do that almost every day. so operation twist is a little impact on the marketplace and i think that's what disappointment is. the rally yesterday was more about merkel comments about buying sovereign debt that was denied and hopes for a europe bill option. >> mortgage rates are at 6% today. this is not a cost of money recession. this is a balance sheet recession. the consumer must be allowed to delever. historically off the charts, our nation's debt is over 100% debt to gdp, that's increasing, it's all bad news, we have to get the government and the fed out of the market and that's the only viable solution. >> well, you know, out of the market, but if they're not there, who is going to -- you know, where is the support for stocks? >> we had a depression in 1921 that lasted like sixth months. >> let it happen you're saying? >> home prices come down maybe 2.5 to 1, and there will be many, many viable permanent buyers from homes. get them to stop renting, you will put a floor in housing, rescue the economy and rescue financial institutions, but you have laws of unintended consequences. >> you have to tell ben bernanke that because he's thinking on different lines. when we come back we'll get the downgrade from moody's investor service. we're being told it is happening imminently. we learned it would happen at 4:00 p.m. eastern, we're waiting on this, it is expected to be announced because of increased funding costs and rising regulatory scrutiny on the banks, we'll have it when it does hit the wires. we have more ahead on today's big sell off and how you can protect your assets in today's volatility. stay with us. welcome back, we're waiting on a downgrade, we're expecting moody's to downgrade the major banks, we have been anticipating that. let me bring in robert anderson right now and jackie reeves. robert, you have been focused and looking, analyzing and investing in this sector for a long time. i want to get your take on this because you people know this industry as well as you. tell me what you're expecting from this downgrade. >> i don't think much of anything now. you know it has been expected, everybody knows the downsides, they're fairly minimal, i think the world is not looking for reasons to be afraid and there's a knee jerk when it happens, but there is no impact. there is no funding impact whatsoever on the banking industry. so it comes down to one or two areas of investment banking on the derivative side, and these are things that can be handled without any kind of major -- >> so would you be a buyer? >> absolutely, you cannot be at a better place i don't think than now. you have revenue momentum again. it's slow but it's coming from the kor beganic growth cycle, it's coming from share take, banks replacing nonbanks, and eventually it will be something good not bad. the negatives are done. the only thing left is to bash them periodically, even that as you see is losing it's punch. >> jackie, what do you think? >> we're not a buyer of banks at this point. we think some of the head winds, the flatness of the yield curve, and the unsustainable interest rate environment is creating norm head winds for the banks. i'm shocked that we place weight on overall ratings moved because of what that has done or not done, and just like we saw with the u.s. downgrade, we still had momentum into that area primarily because of the safety of that instrument and that can happen with some of these larger names. >> i think jack has it right too. i think if we stay in this ab normally low interest rate environment for the future, the earning wills get weeker for awhile, but it has to end, the fed can't do qe forever. >> what about the fact that the capital markets are troubled? tough tore make money there, you have some of the ted count reductions still not done, and the regulatory environment, such a lack of clarity. >> lack of clarity so everybody is bold on everything they can think of to withstand whatever comes out of it. >> i just don't see much that will hammer them other than waiting for this rate environment to finally release. >> we also have the head winds of the loan growth or the lack of loan growth across the entire country. and so that's really weighing on the sector as well. any of the really good credit that's are out there, there's intense competition for those, and that's pushing those attractive rates even lower for these banks, the margin continues to be under immense pressure. >> i agree on the loan growth, it looks massive right now. this is a recovery and it looks weak in the beginning, and then it starts going up. the big difference this time is three quarters has been damaged of the nonbanks, so i'm expecting the banks to start replacing and refinancing america. that should go on their balance sheets. that i'm hoping is enough difference that you get a surprise on the lending side out of here. >> jackie, is there a price you would buy the banks at? the valuations seem to have gotten so low even though you have a rally here to date on some of these names because people are looking for value. so the valuations, what's your sa take? >> sure, valuations are relatively attractive, but there are so many head wins we have been talking about and the regulatory head wind. that is a big unknown for a lot of the banks, so i'm focused more on the overall book number and looking for key head wins to be alleviated before i look at price to earnings and put ab assessment on how cheat that really is. >> if you do the tang bible equy they seem low. if you adjust the roe for a ten year sitting at 10.of welcome they have probably recovered 85%. so again, it's being overshadowed, this profitability recovery has been overshadowed by this abnormal rate environment. to me the whole game is interest rates. if that starts going up to two, three, and four, these earnings are going to really pop. >> why would you expect rates to move higher any time soon. they kor owe graphed it all for us. they going to keep rates where they are. >> it's not going to do anything and they know it. it has to fun something that's a one day or a one week kind of credit. >> i agree. >> there's really no sense of urgency in this space. as you said, maria, the ten year they orchestrated where they want that to be and how long they want that the to be at that level. so the sense of urgency is not behind the sector either. that's another head wind. >> they're in the dream world if anyone thinks they can control the ten year over time. the people who control it are the buyers who are over half not u.s. every little notch they clean up in euro, the money will go back out and into the euro, and that will force us to let rates rise. >> very great insights, we appreciate it. just to reiterate, these banks, if they get hit tonight you want to be a buyer? >> absolutely. >> we're on the sidelines. thank you. >> thank you, robert always great to see you. appreciate it. the markets have expectations that moody's will be downgrading, they're expected to drop any minute. back in a moment on closing bell. and kept turning the page, writing the next chapter for the rx and lexus. see your lexus dealer. laces? really? slip-on's the way to go. more people do that, security would be like -- there's no charge for the bag. thanks. i know a quiet little place where we can get some work done. there's a three-prong plug. i have club passes. 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[ male announcer ] the united mileageplus explorer card. get it and you're in. managing my diabetes is part of my life, between taking insulin and testing my blood sugar... is this part of your life? freestyle lite test strips? why, are they any... beep! wow, that hardly needs any blood! yeah... and the unique zipwik tab targets the blood and pulls it in. so easy. freestyle lite needs just a third the blood of onetouch ultra. really? yep, which is great for people who use insulin and test a lot. max and i are gonna run out and get them right now. or you can call or click today and get strips and a meter free. test easy. what happens when classroom teachers get the training... ...and support they need? schools flourish and students blossom. that's why programs like... ...the mickelson exxonmobil teachers academy... ...and astronaut sally ride's science academy are helping our educators improve student success in math and science. let's shoot for the stars. let's invest in our teachers and inspire our students. let's solve this. welcome welcome back, concerns about a major bank downgrade fuelling selloffs today. joining me now is jeff and jack. do you have concerns with this downgrades out of moody's we're expecting any minute? >> i think we have seen slowing statisticing in places like china and germany today. i would point out there was negative numbers last summer and two months later it was back in the positive column. and you saw the sellers pile on right into the close. and the set up was right because the new york stock exchange two days ago was as overbought as it ever gets. >> that's very interesting. jack how do you see it? >> i just think it adds more fuel to the fire that unfortunately this is not a buy and hold market, and we have a situation where more and more investors just don't trust the financial markets. so we're trying to put together programs for investors where we can offer some semblance of a continuity for investors. >> we were just talking with robert anderson, he was a bank ann list forever and then started managing money. he said he's a buyer, valuations are so compelling, interest rates can't stay forever what do you think, jeff? >> i used to be a bank analyst as well, and i haven't been able to figure out banks for years. i have avoided it since 1999. i think a lot of their balance sheets are convoluted. >> do you agree with that, jack? >> generally speaking, when it comes to sectors, we like cheap sectors moving in the right direction opinion banks broke down financials in general broke down in february. right now there is no end in sight. i think i would tend to avoid banks specifically in financials in general until we see some stabilization and a movement in a positive direction. that seems at this stage a long way off unfortunately. >> well, where is the value then in this market. do you see any areas that, you know, you could be in and protecting yourself? >> sure, so you know, in an environment like this for a sec tar sideways market, there's a couple ways to play it. if you want to be in a more aggressive position, you have to be willing to be in this risk on risk off environment, which we do, we've been doing that for awhile. if you want to be more of a buy and hold investor, we have clients like that too, then you have to take a more diversified income approach. we don't want to rely on bonds, bonds are expensive, i would rather derive income from an equity approach, and we can derive income from things like master limit partnerships, preferred stock, and some foreign bonds that actually can provide some stability and a yield that's, you know, a little more favorable than just bonds, and a fair amount of predictability, certainly not a latter bond, but something more predictable than just a stock portfolio. >> that's very good advice. what about you? >> it sounds like my strategy exactly. i think you can look for dividend paying quality blue chip stocks noncorrelated basically with the markets. i use stocks like johnson and johnson which we have favorablely rated, a stock like timberlands, and they both had decent dividend yields. >> what about taxes? does the tax story change for a reason to own dividend payers? we could see dividend taxes go up to 43% if they don't do anything about these tax cuts that are going to expire at the end of the year, does that change your mind on dividends? >> yes, i lived on the belt way and have a good network on capitol hill, i think they will extend the tax cuts, i have a good sense they will postpone the mandated spending cuts, so i think that's off the table. >> i think that invest fors are going to turn their attention to the fiscal cliff once this supreme court issue on obama care gets, you know, sent down next week. i think investors are going to focus on dividends so we'll see. >> do you think they will rule it down? health care? what's your gut? >> my gut is they do rule it down, but you know, that it's back to the drawing board. >> yeah, do you think we'll get an impact in the market? >> you know, i think magged care, parts of the health care market do get impacted. health care is an area that we're holding, it's cheap, it's relatively predictable, it's certainly high quality, doesn't rely on a lot of debt. i think it's probably a generally favorablely impacted by the ruling, but you know, again, i hate having to invest and rely on the court system for my analysis. it's generally not my expertise, and i would like to see this ruling behind us. >> okay, we'll leave this there, appreciate your time tonight. thank you, our coverage of today's market melt down. we'll tell you the instant it happens and give you the implications. will the downgrades create a buying opportunity? you heard what robert said, he will be a buyer twhuns downgrade happens, back in a moment. >> tough market day as you just saw, we're waiting for moody's rating service to downgrade some of the major banks today. >> back in february they said they would take action on 17 banks. we're waiting for it's actions on 15 other banks including five banks here in the u.s. this is whatted, b of a expected to be cut by one notch, citi by two, jpmorgan and morgan and goldman cut by two, and the big question is morgan stanley, will it be cut by two or three notches. if it's three it would be equal to citi and b of a if their debt is downgraded as expected. it would be two notched above junk or speculative grade. speculatives today on a down sector here on wall street, back to you. >> the word is that this downgrade on morgan stanley could striger a $5 billion to $9 billion call, they said they have the liquidity, but that's the worry that you come up with that kind of number in terms of collateral, that's why such focus on morgan, right? >> it also includes payments for termination of certain contracts as well, maria. there's a lot in that number. the banks have all disclosed what they would anticipate, the added capital, the collateral payments they would have to make if these payments come out as i expected and outlined them right there. it's in there, and again the bank did not say as gorman said, i don't know if he would want to be caught asking why you said that later, lying would be another word, he wouldn't lie about that if he didn't feel that the bank would be capable of meeting those collateral calls. >> we'll be watching awaiting this downgrade out of moody's. my next guest say the the real problem is the slow down and the economy. we have kevin karen with us, peter, let me start with you, you have been writing about this quite a bit, and i guess the global economy is slowing and that will impact earnings. >> that's right, we had a weakness in chinese preliminary index that fell to a seven month low. we saw weakness the euro zone, and we saw weakness in the philadelphia fed survey. and that is intensifying and central bankers are trying to fight but it's moving faster than they can. >> and do you think there is any -- i mean people say so what, china is still growing at 7% or %. brazil at 5%. better than the u.s., do you put credence in that? >> no, the global slow down is intensifying. earnings are going to disappoint in the u.s., profit margins are record highs, the dollar is stronger and that will impact the big multinationals, and that's the head winds, everybody is he needsed their hats on earnings and slapping a 15 multiple and thinks that's where it should be. but they may not come in at $100 this year and less next year if this continues. with that said any day we walk in there could be action of the ecb, so because of this tug of war, the market in a sense has become almost untradeable. >> what do you think? >> i can't disagree with a lot of that, the data has slowed down, i think investors will have to pick a spot where to be, and ultimately i agree with your other guesting that the expectations have stopped rising, it's likely that the slow down in the economy will haircut those. i would use a different earnings figure, but when you look around the world, the alternative competing classes there's not a lot of competing away from ek adequatety, so you have to focus on quality and data is pointing to a slowing economy. >> i just want to ask you, kevin, because i have not asked you about the banks and what you're expecting, do you think this will have a big impact? >> i think it has a limited impact as far as trading goes in the short run. this has been talked about since midfebruary. many of the bank's stocks are down a combined 12% on average. i think some of this is already priced in. keep in mind the banks have a longer term challenge. operating is difficult, lending is difficult, regulatory burden is increasing, net interest margins are copping down. it's not a positive development. >> let me just add in, though, on the whole mor began stanley story where a lot of people think this will trigger a collateral call. morgan will tell you they have $179 in liquidity. why the focus on morgan stanley do you think? >> you apply the leverage factor to that. in all of these cases, you're dealing with a lot of leverage, so even a little haircut to capital has an amply fier effect in the wrong direction. >> thank you, appreciate your time tonight. let's get to steve leisman with breaking news right now. >> thank you, a press conference saying spain will formally ask for help for it's banks on monday. there is kristine leguard speaking, and they ask for spain to get access to the funds for the european rescue fund, and they will negotiate a restructuring plan for the country's banks, and mrs. leguard is speaking now saying they have additional scope to help, maria? >> thank you, steve. are we in for another swoon in the markets tomorrow? we'll have some of the leading market pros on wall street. stay with us, we have a market that sold off today and we're awaiting a downgrade from the major banks. welcome back, is the moody's downgrade not a big deal for the banks? that's according to david george. he says the banks have bigger problems. joining me now kate kelly. david, let me kick it off with you, we're expecting this downgrade from moody's, what does it really mean from the banks? robert anderson saying he wants to buy the banks here. >> i think the downgrade is the worse kept secret out there, the banks have been preparing for months if not a year to 18 months. so i think the real question is like with morgan stanley, which we don't cover how much that cut will be, but i don't think there will be any real surprise for the downgrades tonight. >> what can you tell us about this downgrade coming? >> i think it's true that the fact this ratings action is coming toward the end of june and that's certainly the case if it happens today, but the more interesting thing is what can't really be anticipated and won't take effect until after the action occurs, is the effect on borrowing, right? they have a certain level of credit quality if they will do business and investors that may not want to do business with banks with a lower rating. the good news is nobody is getting into junk status here. if you're morgan stanley and facing the possibility of a three-notch downgrade or even two it's not an ideal thing. it could make cost of borrowing more expensive and more difficult to trade. you think of commodities which i have been spending a lot of tomb on recently, this is a real constraint going forward. so it's a real thing, and what we're waiting for are the details and we to know is @ worst case scenario for these banks, or is it one or two notches down? >> i think that's right, what do you think about the $5 billion to $9 billion collateral call for morgan stanley? what's your take? >> i think morgan has been a unique focus throughout the story because they did stand a have a fairly considerable downgrade in a worse case scenario, and they are a firm with issues lately, but they have been focused on raising capital. i reported a few weeks ago it appeared they were looking for a minority investor, maybe anticipating events like this down the road. i think given their size and scope their relatively small compared so some of the universal banks, but it seeps like a focus for morgan stanley. i think it's a real concern, but the message seems to be that it's not going to be the worst case scenario and they will manage through it. >> david, out of all of the names you covered, you have four outperforms and a neutral, what's the best way to invest? >> there's a ton of fundamental head winds. to us, jpmorgan is a special situation at this point given the stock's meaningful decline following the london whale and investment grade. i think vpm is a great opportunity. they're a company we think will return capital via buy backs in the third quarter, and a really compelling risk ri ward here, i think they stack up extremely well here. >> you make a good point, you're talking about the strongest of all of them and you're talking about a pretty good def dent. >> exactly, this is about a 3.5 dividend today, and out to the 2013 another dividend mic is li -- hike is likely. you're getting probably almost 100% of their earnings back to you in the next year maria in the form of buy back and dividen dividends, and that's a 13% plus earnings yield. >> we still don't know how steep the loss is, right? he's not tell us how much, when will we get that info? >> i know your colleague made interesting news yesterday with respect to the progress that jpmorgan has made in dealing with this trading issue. i would expect that july 13th analyst call, there will be a two-hour discussion from what we understand about not only the second quarter results, but also what cio unit does, more information, more clarity around that, and probably more detail around this trade in particular. the more details you get i think the better. i think some perspective is important. whether it's two, three, four, eight billion, getting that final number maybe isn't what really matters. it's pretty small in the scheme of things and again keep in mind they will make money and expect to make money after the loss here in the second quart er. >> i think it's going to be a few quarters before we know the size of the loss. i can't corroborate a number because they're not out of the trade, but that seems like a reasonable zip code, but it does seem like they're getting this problem behind them. i think the market issues are somewhat resolved. >> thank you, we'll see you soon. following today's carnage, what will move your money first thing monday morning? we'll sell you up for the day ahead. laces? really? slip-on's the way to go. more people do that, security would be like -- there's no charge for the bag. thanks. i know a quiet little place where we can get some work done. there's a three-prong plug. i have club passes. 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[ male announcer ] every day we help students earn their bachelor's or master's degree for tomorrow's careers. this is your moment. let nothing stand in your way. devry university, proud to support the education of our u.s. olympic team. welcome back, welcome back, we have been waiting for moody's to come out with an announcement that it was downgrading banks. >> sources mystified, they were expecting the announcement right after the market closed. we're expecting moody's to take ax on ratings of five of the biggest banks. i want to clarify something from earlier, morgan stanley, in the event there is a debt downgrade is going to have to have the cash on hand to meet some collateral calls. it has $179 billion in liquidity, so it has enough on hand for this there are those high collateral calls. again, it's a liquidity issue for these banks that they have the money to meet these collateral payments and all of them do have that cash on hand. back to you. >> thank you, it may be a very challenging job market right now, but if you're a veteran of the armed forces, wall street wants you. with all of the head winds and negative jobs data, banks are still pulling out all stops to hire veterans, even as their downsizing, saying the vets have the right skill set, and they want to do something good for the economy. jpmorgan has hired 4,000 veterans since 2011. citi plans to hire more than 1,000 veterans in the coming year. b of a plans to double. today, more than 1,000 vets turned out with open minds with resumes in hand to see more than 100 companies, which one host says today are for real jobs. >> post-9/11, it's over 12% right now. we've asked that all employers that are here today, and again some of the biggest companies in america. at&t, american express. all of the major financial services. have actual jobs to give. so there are employment opportunities. so everyone in here is open and willing and wants to hire veterans. >> now, we were speaking with veterans all day. they were saying that they spoke to as many as 20, 25 of these companies. some walking away with several leads. hopefully these targets can be achooefd, even if the face of those head winds. >> all right, kayla. thank you so much. well, we are looking at wounds after a rough day on wall street. we've got 30 seconds on the clock. let's talk about tomorrow. my next guest will tell us what they think you should be watching tomorrow. jim key with us. jim, we'll kick this off with you. 30 seconds on the clock. tell us what you want to watch tomorrow at the open. >> well, in addition to the possible bank downgrade, i think the big news with today, the philly fed index is something that the markets frankly overreacted to. the u.s. economy is muddled growth but not a recession. i'd use it as an opportunity to look for both value stocks and growth stocks, not either or. and as always, head your tail risk with a quality portfolio of low duration latter bonds. >> all right. on to gary. 30 seconds on the clock. >> maria, we've had mixed economic news for several months now. today's news was on a disappointing side. it's pulled the market back. we've had a two-week rally off of the lows earlier this month. we're anticipating tomorrow that we might see some consolidation after the weakness that we saw here today. but, you know, there's still going to be a negative sentiment for a few days we think. >> all right. bill, you got the last word. 30 seconds on the clock. >> thanks, maria. i think the key is you see a bill pull back in commodities, down 22% from the high. keep an eye on all the commodities, especially crude oil. you might see an uptick in volume. overall volumes have been extremely light. see if we get an uptick tomorrow. with the bell sell off today, i would expect a bounce back tomorrow. >> you think it's a bounce back even though we closed at the lows, down 250 points? >> i do. i think once the moody's news comes out, it will be absorbed in had the marketplace. i think the market steadies and holds tomorrow. >> all right. even a follow up we fit in 30 seconds. thanks, guys. good to talk with you. we appreciate it. see you soon. my observation on financial sector next. stay with us. we're back in a moment. 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[ male announcer ] we began with the rx. ♪ then we turned the page, creating the rx hybrid. ♪ now we've turned the page again with the all-new rx f sport. ♪ this is the next chapter for the rx. this is the next chapter for lexus. this is the pursuit of perfection. welcome back. finally today, my observation on the major banks and how to trade them with this imminent downgrade we're waiting for from moody's. there's a debate on whether this becomes a buy on the new story because it was already priced into the bavngs. the bank stocks were down. they've been down recently. in fact, they've had a rough couple of years. some investors, however, are seeing value here, sending the bank index up some 13% year to date. although, it is still well off the highs in march. you can value these companies in different ways. certainly if you looked a the the recent declines and their historically low prices right now, you can say this might be the time to buy. particularly given the fact that many of them are once again paying dividends. however, sometimes stocks are low for good reason, and cheap stocks sometimes get cheaper. the fact is the fundamentals for the banks do remain somewhat questionable. likely making these stocks dead money. at least over the near term until more clarity is given on a number of fronts. first, the impact of the downgrade. it will make their cost of capital go up. it puts increased pressure on the big bank earnings, and it could trigger a collateral call for each bank in the billions. talking about morgan stanley as an example. when i interviewed citigroup's ceo, he pushed out all capital deployment for another year. he even pushed out any expectation of the company paying a dividends by telling me he will not even decide what to do about dividends until the end of this year. it will be at least 2013. then of course is the regulatory environment. many parts of dodd-frank are still being written as we speak, including the effort to try and define proprietary trading and ban it. i have said in the past, i do not believe they will be able to define it. it's very tough to define it, making this key aspect of the law impossible to enforce. but until that's actually sorted out and the banking sector actually understands and has a clear idea of where this regulatory environment goes, we could be watching these stocks as dead money regardless of what moody's does or doesn't do tonight. we are waiting on that downgrade. we were told it happens at 4 p.m. eastern. we'll be watching for the rest of the evening. before we go, let's recap the day on wall street. it was a tough day. the dow jones industrial average finishing at low of the day. the dow down 251 points. things worsened in the final two hours of the trade. s&p 500 cut 30 points to close at 1325. take a look at that chart. not pretty. the widespread selling had all ten s&p sectors losing altitude today. banks among the sectors that did get hit hard in the final hour along with energy stocks, terms. oil, by the way, falling in today's trading session. nasdaq wiped out 71 points today. that was 2.4% lower. the nasdaq snapg a five-session winning streak. also take a look at financials. of course, as we await the moody's downgrade, and you can see declines there of between 2.5 to 3.5%. bank of america down almost 4%. jpmorgan down. morgan stanley, citigroup all under pressure ahead of these downgrades that we are expecting. morgan stanley, by the way, down 1.6% on the session. a lot of people thinking this downgrade will be collateral for between 6 and $9 billion for the company. they have some $17 billion in liquidity. the market under pressure today. we'll see what happens tomorrow. lots of things on the docket. of course, that moody's downgrade will likely set the tone once we get it.
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