Yeah. Although i think well be a little up today. If youre looking at the close, the close is significant. But i think going forward, i think the economy even though were only looking at 1. 5 or 2 gdp growth in the quarter, theyre probably going to revise it. So the economy is still expanding. Its expanding very small. Theres a lot of money on the sidelines as far as corporations. Youll still see a lot of mergers and acquisitions. Youll see people coming in and buying things. Im still in this market. Thank you, peter. Thank you. See you later. So were down down 200 points on the dow industrials average. The biggest oneday decline so far this year. Same thing for the s p. Thats the first hour. Stick around. Lets try and make sense of this in the second hour of the closing bell. And welcome to the closing bell. Im sue herrera. Our colleague Maria Bartiromo will be back tomorrow. Bills going to join me in just a second. Stocks sinking in a big way on fears about the outcome of italys election. Heres how were finishing the day on wall street. Certainly nothing like what we saw this morning. Right now were down 215 points on the Dow Jones Industrial average. The nasdaq composite down 45 points on the trading session. Thats a loss of almost 1. 5 . And the s p 500 is significantly down percentagewise. 27 points or 1. 83 . So was the downturn part of the much anticipated pullback . Or a buying opportunity . Were going to talk about that with ryan dieterich, kevin caron, and brian jacobson. Welcome to all of you. Appreciate you being here. Lets start if we could talking about this market at this point. And lee, im going to start with you, if i could. What do you do on a day like today . If youre the investor with the longer term time horizon but you dont have a big stomach for volatility. Lee will join us in just a second apparently. Hopefully hell have time to think about that question. Ryan, why dont you take it . I think in this environment its in it depends. Which one . Ryan dieterich. Got it. When you look at it right here, sue, we saw warning signs last week. And when you break it down, the markets had a good rally. Maybe due for pullback consolidation for a few reasons. We did a study since 1999. What we found when you go from the first time it hit 10,000, 11,000. When you hit those 1,000intervals the market does poorly the few months out. Really quickly, something important. We follow activity and sentiment. If you look at the demand, its extremely high relative to calls. What does that mean to someone listening . Very quickly ryan. The last two times it was that wide, last year april and september pullbacks. Wouldnt be leery here. All right. Brian jacobson. Down 216 points, up 120 on friday. Clearly volatility is with us right now. Whats causing it and what are you doing about it . Sure. I think that the italian elections are really the proximate cause of the down were seeing today. Thats why we see bond prices were up. E the euro was significantly weaker. I think that is almost eerily reminiscent when everybody was talked about. Is italy going to be forced out of the eurozone . I dont think that will be the case. Wait a minute. If youre just joining us, the italian Election Results seem to show theres gridlock. Theres no clear winner in this whole thing. But brian, ive been hearing from so many who say they buy stocks because where else are you going to invest . They see that as something of a safe haven play . Youre saying they will run into a safd haven by buying stocks. Yes. We saw yields going down significantly. Interestingly the dollar versus the yen, the yen actually strengthened relative to the dollar. That was a little perplexing to see that sort of thing given the imminence of easing out of japan. But stocks are not a safe haven. They are risky assets. I think in this environment you have to be willing to take that on. I think when bernanke speaks hell give a boost to the markets as a result of his position towards providing more liquidity. But you know, kevin, weve known that the fed is going to provide liquidity for some time. That has not stopped the volatility from coming into this market. So what do you do at this juncture . Well, we came into the year with the idea that youre going to have higher returns on the s p 500. 10 or so on the year. But we got a big boom in the early part of the year. The vix came down dramatically. Investors decided there was no risk anywhere. Now that we see geopolitical risks popping up in italy, once again investors have to go back and rethink their risk profile and expected returns. So not only do you have italy, but also the sequester coming up on friday. And theres still a lingering thought about the fomc minutes last week and what it might mean if vemplgly some day if the foot comes off the gas pedal. All this has gotten investors off the sidelines thinking about what kind of risk might be out there. And i think we just went too far too fast and we were just reminded today theres still risk in the environment. Okay. Were adding to the party here. Lee munn sson who is joining us. Lee munnson, were down 216 today. You kwaul this market is game with no rules. Pretty frustrating, huh . Yeah. Its frustrating to me. You have to remember weve got Mainstream Investors who have this myopic view of this stuff called the sequestration and this binary black and white thing with congress. Whereas pros like ourselves, were talking about europe and italy. Were wondering whether or not japan is going to follow through on beating their 100year recession or not. Investors have to remember theres so many more awesome things to look at than just a congressional thing. I agree. I think we could make 8 , 10 on the s p. But again, if those Mainstream Investors continue to look at just that one thing thats happening in congress which is a train wreck, nobodys really going to be able to get a plan or get their act together. I dont know theyre just looking at whats going on in congress, gordon. But maybe what theyre also looking at is a volatility index thats been spiking lately, markets that are swinging from one side of the pendulum to the other. You know, theres a lot for the individual investor to take in. And id like to give them a little more credit than sometimes we do. What do you see in this market at this point . And what do you pretend for the rest of the week given the fact we have the fed weighing in on things . Its an interesting trading day down here. Vix popped. They reversed hard. Guys were getting complacent earlier saying theyre going to continue through friday. It was just admirational friday. Theyre not saying that now. This took off to the downside and took off hard. The question is is it a correction . Youve got to be patient in buying. The answer is yes. But theres a caveat there. Its not just japan. They were talking about italy earlier. But china is also restating worries that theyve overstayed it over there and theyre cooling down. You throw in sequestration, theres a lot of reasons for guys to step back here and lighten the load a bit. Gordon, peter costa just said hes licking his chops as this market goes lower. This is a buying opportunity for him. He cant wait to get more stock in his portfolio. Of all the guys on the floor, peter is one of them. I respect that. Nonetheless. Are you skeptical of this . Are you going to subscribe to the buy on the dips mentality here . The fact of the matter here is still driving equities higher. As long as theres the appetite here to continue to take credit at these levels. You know the equities will be following. Because what are the corporations going to do with all that money . A few other things. Theyre going to be mna. Which weve seen examples of 37 and theyre going to be looking to buy back their own stock. Those are going to be the floors on it. Until something major changes. But the thing youre seeing here today is a change in investor behavior. Youre starting to see guys say its not going to be a hiccup. Its going to be a correction. Thats where things get interesting. Thats when the vix strikes. But got to take it down. I love what im hearing but take it down to street level so people out there with the retirement nest eggs can engage. I think if youre that pessimistic in sense i think theres going to be a correction, we have to have people rebalance what their longterm risk is. Correction is not the end of the world. Oh, yeah. Oh, i would love its not heres the thing. Go ahead, lee. This is not the end of the world but what we did see a little while ago is no one thought that Silvio Berlusconi would be nowhere in contention for this race in italy. The market has to incorporate this new information that theres a lot more antiausterity, antimerkel sentiment in italy. Im not saying this ultimately changes the big picture in europe, but it is a new piece of information that has to come into a market at a time when the market was up very big and vix was down. It laz to get factored in somehow. All right. So brian jacobson, tell me where to put my money. If im looking at this as an opportunity or looking for shelter from the storm. Where do i put my money . One of the areas that i really like right now is shortterm high yield. I think thats a good place to be looking. Just because that way you get a little bit less volatility. Its like equities but with a coupon attached to it. But really if i i still think were going to end the year around 1600 on the s p 500. If i buy in at 1495, sure it makes a difference. Youre still up for the year. I think you can be looking at adding to positions. Its a 1. 8 dropping with but it wasnt uniform. There were still a large number of stocks that were up. This is where some of the bottomup research can really pay off in these types of environments. Ryan dieterich, youre a chart watcher. How much damage are we doing to this market with these declines were seeing right now . With the s p back below 1500, the dow pulling well away from the 14,000 level. Some of these benchmark numbers that weve been following for awhile, are we doing some damage to the upside here . I think so, bill. Again, when you look at the volume, you look at friday. We had good bounce. Just after lunchtime today we had more volume on this than friday. Right there signs a distribution. Look at the s p 500. 1460 was the peak multiple times last year. We could pull back to 1460 which is a 4. 5 correction. If we break that, all bets are off maybe go lower. Maybe hedge yourself with vxx. I know its up a lot today. But if the market keeps going lower, it could go higher. Are you in that, ryan . The vxx . Yes, were advising people to invest a little bit. Not a lot, but thats a good hedge we think to lower prices if youre bullish overall. All right. Thank you, guys. Appreciate it. And to think it was just a couple of hours ago that we thought today might be the day for history. The dow coming within 84 points of an alltime high before obviously the sellers took over the markets. Josh lipton has some details for us on that. Hey stwl, sue. A promising start then the headlines began to hit. Berlusconi, italy. The elections causing a lot of nervousness. Bill gross of pimco, the bond king himselves with heres what he had to say on twitter. Are italians voting for austerity, prosperity, or promiscuity . We have our own worries on this side of the atlantic. The across the board spending cuts due on friday. Due on march 1st. You add it up, you saw the vix, the fear gauge surged. That was the biggest pop since august 18th, 2011. The industrial average that had been up 81 points finishes down. The s p 500, your benchmark gauge finishes down 27 points at 1487. Financials, energy, materials, the worst performing sectors. The nasdaq down 1. 4 at 3116. Back to you. All right, josh. Thanks very much. Well be checking back. You to figure out whats going on here as many of these averages and indicators are taking us back as we finish up february to levels we havent seen since the beginning of the year. When we come back, the fed starting to think about backing off of its aggressive longterm Interest Rate. Thats what was suggested in the minutes from last week. Our Steve Leisman is reading the tea leaves. Were also talking to pros to tell us how to invest without the fed in your corner right now. Also then were going to talk corporate news. Companies who might be hiding when it comes to when theyre hacked. Well go live to the cyprus security conference in San Francisco. Find out how often this is happening from the ceo of rsa. Will a recent wave of violence in vegas hurt business or provide a buying opportunity . Well be checking in live to las vegas in a moment. And home depot which is a dow component its due to report earnings in the morning. Will it help turnaround todays selloff or extend the losses . Well break down everything you need to know when we come back. If youre just joining us, all the stock averages wiped out early gains. Mary townsend. Thats what weve been seeing every time there has been a significant decline. Trading hands here at the new york stock exchange. Dow and s p worst drop since after the day after the president ial elections. These were some of the losers in todays section. We saw weakness in financials. They were among the weakest performing sector. Bank of america one of the biggest losers. Among the retailers, lows came out with better than expected numbers but a disappointing forecast for the full year and its stock came under pressure along with dillards. Its earnings missed estimates. Down 9 . Barnes and noble was a winner there because the chairman would like to leave the electronic book to another to be on its own. Home builders under pressure as well. Ahead of a lot of pricing data as well as news about home sales, new and pending today. One stock that did move higher was radian. Its extending those gains from friday up just about 2 . Back to you. And robert just pointing out to me that the dow lost 154 points just in the last hour of trade today. That is a lot of selling going into the last hour. Mary thompson, thank you very much. Heres the critical question for the market. Is the low Interest Rate fed party coming to an end sooner than we been led to believe at this point . Steve leisman has points on that. Credibility and belief in what the fed will do can be as important as what the fed actually does. And whats clear is the emerging debate over how long to continue buying assets known as quantitative easing and whether the costs outweigh the benefits is causing to reassess the outlook. Maybe part of todays selloff. All of this makes the selloff more important. Investors will be watching to see if he gives a hint to an early end of qe. Quote, we expect the chairmans Monetary Policy testimony this week to offer a very robust defense of qe 3 and we would be amazed if he were to say anything that would be interpreted as a hint that the fed will slow its asset purchases any time soon. That fed actions today buying assets could lead to losses tomorrow and the hiked rates. That means a huge decline on what the fed gives to the federal budget every year. This year it totalled 80 billion. And while congress may not care so much about the details of Monetary Policy bill, theyre going to care when it means they getless money. And in fact, you think this selloff i was just telling everybody the doughdown 154 points in the last hour. Thats a result of what is expected tomorrow. I think if youre going to be symmetrical in your thinking and i always try to be that. If the market went up on more qe or an infi gnat qe, then its got to be thinking more pessimistic thoughts if theres concerns the qe wont last the entire year. Stay there, steve. Lets bring in john merrill. Hes founder, chief investment officer. You agree with that, john. You think this is on weak legs now, yes . I do. I think the tender of the market changed last thursday with the discussion of fed minutes. The bull market has had three legs. Earnings which were phenomenal that are now falling off. Valuations which were exceptional that are now merely okay. And you had fed policy which was extremely st lly stimulative. Raised by jeremy steinen in his paper back on february 7th that we could be setting the seeds for another financial crisis. So if that is, indeed the case and we saw the market selloff linked to the fed, what does that portend for tomorrow and what do you do in this market . I think bernanke is going to be as positive as he can be. I agree theres nothing hes going to do to derail anything tomorrow. Its whats happening within the group and the percolation of new comments that really do question this strategy. And look at whats it doing for main street versus for wall street . These are all valid questions. We have a lot of retirees and savers who are making nothing on their savings. Steve, you know chairman bernanke. Is it possible how how much does he respond to markets . And the feeling that maybe the markets are being spooked by just the fed talking allowed right now about the day when they will have to remove from the qe . Is it possible he changes some of his testimony tomorrow to soothe the markets . I do think so. I think the fed chairman ben bernanke sees the stock market as a major conduit for his policy. And if you remember going back to jackson hull, the talk this august on expectations of the market when it comes to fed policy. The concept that if you anchor in today what will move policy tomorrow and remember what the fed did in september. They said were going to move when theres substantial improvement in the labor market. And now the discussion, bill, and this is whats profound about the discussion. It has nothing to do with economic variables. It has to do with political variables, Balance Sheet variables. Its no longer about the variable that we thought we understood which was the labor market. John, if i could go back to your comments about main street versus wall street. In todays world it seems are very much linked. Mainstream will look at the news. Of course theyve all watched closing bell. Theyll look at the news and see the 200 point selloff in the dow industrial average and wonder whats going wrong in the economy. I dont know you can separate the two as much as you used to be able to. And specifically as it pertains to fed Monetary Policy. Every policy creates winners and losers. The big winners from this policy have been wall street and investor class. Basically the feds objective was to boost asset prices and thats been beneficial. Its been beneficial to the informser class. But whos been the losers in this . And the losers have been main street. Look at the economy. Were four years into a recovery and what kind of recovery do we have . And were looking at normal investors who are saying let me have some return on my riskfree assets. And theyre not getting it. So theres winners and losers. I think you have to look at it in that light. Steve, what do you think of that . I think thats right. I think thats a concern of fed chairman ben bernanke. I think what hes going to have to do is hes going to have to be careful as he always has been of not leading his committee. He doesnt want to i dont think he wants to squash the discussion, but i think b he wants the market to have the right expectation. I will tell you that i think the market may have overdone it just a bit in the following way. I think the first half a year of qe is probably well set. 500 billion is probably in the cards through june. But the question becomes after it, hes got to Start Talking about that and let it be known that theres a good chance that it remains in place over that period of time. I also think hes going to face a lot of the impact on main street versus wall street. Thank you very joining us. As always, well check back with you and have much more on this selloff on wall street today and tomorrow morning. All the eyes of course will be on home depot. Because that giant and dow component releases its earnings before tomorrows open. Could have a big impact on the selloff. Whether it continues or whether it reverses. Tdd 18003452550 this morning, im going to trade in hong kong. Tdd 18003452550 after that, its on to germany. Tdd 18003452550 then tonight, im trading 9500 miles away in japan. Tdd 18003452550 with the new global account from schwab, tdd 18003452550 i hunt down opportunities around the world tdd 18003452550 as if im right there. Tdd 18003452550 and im in total control because i can trade tdd 18003452550 directly online in 12 markets in their local currencies. Tdd 18003452550 i use their Global Research to get an edge. 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The different free dinner almost every weeknight . Or maybe, its all of the above. And all the rest. Am i home . Nope. But it almost feels that way. Homewood suites by hilton. Be at home. The dow down sharply today. Josh lipton with a look at the selloff. You saw the stock market tanking here. Finishing deep in the red. The dow and the s p 500 suffered the worst oneday drops since november 7th. Remember, november 7th, the day after election night. The dow drops triple digits now at the lowest level since january 23rd. The s p 500 at the lowest level since january 18th. What happened . Were back to a Market Driven by headlines. Political concerns on both sides of the atlantic. A positive start to the day, but then those headlines began to hit about italy and Silvio Berlusconi. Uncertainty about the elections in italy. You can see the impact on the common currency. The euro lowest against the dollar since january 11th. In the u. S. Concern about the spending cuts due on march 1st. Add it up, lots of worry. The vix also called the fear gauge surging some 34 in todays session. Thank you. Meanwhile, another concern for the economy and the stock market is computer hacking. Our entire Financial System love lives in a digital world. Lets go live to the rsa security conference in San Francisco where eamon javers is standing by. Rsa is one of the top Cyber Security firms in the world, right . Thats right, sue. Theyve got hundreds of experts here. This place is crawling with Cyber Security experts. Whats stunning to me is the gap between what you hear from Cyber Security experts and the folks in washington and what you hear from the companies themselves. We spent time looking through filings to find out how often companies are disclosing Cyber Attacks that they really experienced. We could only find a couple of handfuls of examples of companies revealing that. Youve got Cyber Security experts saying this is a huge problem. And on the other Hand Companies not saying that much about it in their filings. Why is that . Weve got some new data released just within the past half hour or so. Take a look at some of the data here. Saying investor attitudes here, they did a survey and found more than 70 of investors are interested in reviewing Public CompanyCyber Security practices and nearly 80 would not likely consider investing in a company with histories of Cyber Attacks. That might be one Reason Companies are not likely to disclose. Lets talk about that. Thanks. Our next guest expects cyber hacking to get worse before it gets better. Coviello joins us now. You heard eamons report. These companies are afraid that if they make public the frequency of Cyber Attacks, it could hurt their bottom line. How how frequent is it . Are they vastly underreporting . Do you blame them for underreporting right now . Well, theres a big problem with the fact that in many cases a lot of these companies dont even know theyve been breached. They dont know theyve been attacked and dont know a lot of their intellectual property has been copied. Thats one big issue. Second big issue is the fact Companies May be breached but nothing got stolen. They were able to repulse the attack so far. So far. And in that case, they may not want to be embarrassed that they were breached even if nothing happened. The third instance is if they know somethings happened and you need to distinguish between something being stolen which means you dont have it anymore and something being copied. If i. P. Is copied, it may not show up in a competitors products for years to come. How do you put a value on that . And how do you disclose that . Theres a whole host of issues that have to be considered when you talk about that. But i will say lets do this. Lets bring it home for people who deal with banks. We hear about the hacking that goes on or the attempted hacking of banks. B of a and citi group and chase, everybody admits theres been attacks on them and deflections. But should we worry about our internal Bank Accounts we access online because of hackers . Should that be a concern for the average Checking Account out there . For the most part, no. The banks actually of all the industries do probably the best job of protecting themselves. The attacks youve seen recently are something called ddos attacks which disrupt banks to carry on business. This is a serious escalation. It appears theyre coming from a nation state that sponsors terror. Thats one of the things we have to be looking forward about and doing a better job protecting ourselves. All right Arthur Coviello of rsa, thank you for your thoughts today. As we continue, more on todays big selloff and why some say it may be about to get worse because of washingtons dysfunction. As blunt automatic spending cuts are set for four days from now. Were back in a minute. If your tires need to be rotated, you have to get that done as well. Jackie, tell me why somebody should bring theyre car here to the ford dealership for service instead of any one of those other places out there. They are going to take care of my car because this is where it came from. Price is right no problem, they make you feel like youre a family. Get a Synthetic Blend Oil change, tire rotation and much more, 29. 95 after 10. 00 rebate. If you take care of your car your car will take care of you. A talking car. But ill tell you what impresses me. A talking train. This ge locomotive can tell you exactly where it is, what its carrying, while using less fuel. Delivering whatever the world needs, when it needs it. After all, whats the point of talking if you dont have something important to say . Todays selloff is not related to the automatic spending cuts set to kick in on friday. But there are many including the white house who still think the cuts will hit the economy hard. Today the war of words continues. John harwood live in washington has the latest. War of words is right. It was just the application of public pressure by both sides. First by president obama at the white house when he talked to the nations governors about ways in which the automatic spending kutss will hurt their states trying to get them to put pressure on the congress. But he also described a way out for republicans and democrats. Heres the president. Democrats like me need to acknowledge that were going to have to make modest reforms in medicare if we want the program there for future generations and if we hope to maintain our ability to invest in critical things like education, research, and infrastructure. But we also need republicans to adopt the same approach to tax reform that spaker boehner championed just two months ago. But of course of the two parts the president outlined, republicans only agree with the first which is a point boehner made at his News Conference about a half an hour ago. Heres the speaker. The president says we have to have another tax increase in order to avoid the sequester. Well, mr. President , you got your tax increase. Its time to cut spending here in washington. And that is the stalemate in a nutshell. The only question is whether or not we get enough public pressure from the backlash and reaction to these cuts in order to force the two sides together to come to some accommodation. Perhaps late in the month of march or some time later in the spring. All right, john harwood there in washington. Lets get back to josh lipton with this market flash. Josh . Okay. You know what . Lets talk to the republican congressman buck mckeon. He says it may take a market event to get something on the spending cuts. What do you think . He joins us from capitol hill. When you say a market event, are you talking about the type of move we saw in the market today . Or are you talking about something more severe . Well, i think the market just gives us a chance to show what people are really thinking. I think theyre just starting to focus in on whats happening here. You know, the president sounds like the last couple of weeks all of a sudden he realizes sequestration is a problem. It was his idea originally. He told us a year ago if we tried to fix it, he would veto it. And if he had just paid attention to all of his military leaders from the secretary of defense on down, we held five hearings to hear from them how important it was to not do this and how bad it would be on the military. Then we had a hearing on how bad it would be to the economy. This was over a year ago. Its like the president now is just ai wakening to the fact. I have to say. We hear from plenty of economists who come on this show saying a lot of what were hearing are scare tactics from people who will be most effected in their own back yard. Whether its the military or other domestic programs that would be cut as a result of the sequestration. The economists tell us while it does have some impact on the economy, it doesnt happen overnight on march 1st. The impact on the economy is not as bad as a lot of the doomsayers are making it out. What do you say . We have been told for years we would have a certain amount to spend for military this year. We have now cut 4 487 billion ot of that at 50 billion a year. And that kicks in this year. Theyre already grappling with that. Then you add sequestration on top of that, 500 billion. Understanding that were now five months into this process. The fiscal year ends september 30th. All of these cuts that start march 1st, this one year were going to have to deal with in seven months. To me thats pretty devastating. And the economists say that we could lose 2 million jobs. Weve been told the military is going to take 190,000 personnel out of the army. 20,000 out of the marines. Theyre going to come home, go right on to the unemployment lines with a fragile recovery i think thats pretty devastating. All right. Congressman, thank you for your thoughts today. Appreciate it very much. Thanks for having me. Thank you. I dont know where were going. Are we going to josh or this tease . All right. Lets talk about home depot. Im just going to read it. Can home depot nail down good earnings tomorrow or will it turn the screws . It is a dow component. That could be a catalyst for what happens with stocks tomorrow following the selloff of better than 200 points in the Dow Jones Industrial average today. Well be back in a minute. [ cows moo ] [ sizzling ] more rain. [ thunder rumbles ] [ male announcer ] when the world moves. Futures move first. Learn futures from experienced pros with dedicated chats and daily live webinars. And trade with papermoney to testdrive the market. All on thinkorswim. From td ameritrade. After todays big market fall, can dow component home depot help rebuild the markets gains . Diana olick previews the report for us. Hi, diana. Hi, sue. You know, as housing recovers and Home Improvement surges yet again, wall street is looking for big things from home depot who reports earnings tomorrow morning. Analysts have suggested a profit of nearly 64 cents a share. That would be up from 50 cents a share in the same quarter one year ago. Estimates have been increasing for the Home Improvement retailer as home depot has seen a rise in revenue. For the Fourth Quarter expected to rise just over 10 to 17. 7 billion. For the full year theyre looking for revenue at 74. 2 billion. The retailers have been benefitting not just from the housing recovery but also from what has been left over from the housing crash. That is distressed properties. Investors are buying them up still at a fast clip and then renovating them to put up for rent. Thank you. With the dow and the s p 500 suffering the worst day of the year so far, all eyes are indeed on home depot. The component are reporting earnings at 6 00 a. M. Eastern time. Those numbers will now be crucial following todays big losses. Lets talk about it with david strasser. He has a neutral rating on home d depot. Thank you very joining us. It had been downgraded back in the fall around valuation. Theyre doing a great job. Theyre executing. And tomorrow morning is going to be a great number. The question is whats priced into the stock here. All right. Michael, you have a buy rating on home depot. It indicates you think theres more value here. I feel the valuation question is one that comes up a lot. And i think the valuation of 18 times 2013 and 16 times 2014 is warranted for a company thats going to grow earnings 15 to 20 the next few years and has amongst the most defendable Business Models in retail. And by the way, they have great momentum at their back right now. I think the stock still has more room to go. Especially after the 7 pullback in the last few days. That momentum, this is a company thats considered one of the proxies for the Housing Market in our economy. That momentum, is that what youre saying . The Housing Market has room to grow . I would argue it as an asymmetric risk reward versus housing. It should fully participate on the housing side as the market continues to unfold. But with a lot of these other companies, the outcome is binary. With home depot, theyre cushioned on though downside in the event that consumers are unwilling to make the bigger ticket purchase. They will continue to repair and maintain. Yeah. Thats it, david. I was going to say its not just the Housing Market per se in terms of new sales. But it also has to do with the rebuilding, the renovations, et cetera. Plus theyre executing well on their business model, are they not . Theyre executing really well. As well as any retailer. But what weve struggled with is if you take in the heat of the highs, the best part of the Housing Market in the mid2000s, they outperformed gdp. Almost 100 of that was related to store maturation. You take a 1 , 2 gdp and talking about it, theyre going to peak at 4 or 5 . Were fully flowing that through our model. And we just still struggle from a valuation standpoint of how much higher it can go here. Were just trying to look at the model from that perspective. I got to go at this point. But thank you, both. Well see what the guidance is from home depot. 6 00 a. M. When we come back, still more to come on todays market selloff. Lets say you pay your guy around 2 to manage your money. Thats not much you think. Except its 2 every year. Does that make a difference . Search cost of Financial Advisors ouch. Over time it really adds up. Then go to etrade and find out how much our advice costs. Spoiler alert its low. Really . Yes, really. Etrade offers Investment Advice and guidance from dedicated, professional financial consultants. Its guidance on your terms, not ours. Thats how our system works. Etrade. Less for us. More for you. All right, lets kick things around on this market selloff today. Joining us, our colleagues, Mary Thompson here with us in new york and josh lipton back at hq. Mary, its clear the sentiment in the markets changed last week when the fed minutes came out. And everybody got spooked. Maybe qe is not going to last forever . That was certainly the fear, you know, last week, and then whats interesting today, was just reading a note from a trader who said, what happened the last time we saw the vix spike the way it did, which was back in november 2011. And he said, the headlines at that time, when you saw that spike in the vix, stocks got hammered on fears about italy. So, once again today, in addition to the concerns that you may have about qe maybe easing or ending sooner than expected, once again, these concerns about italy and its fiscal issues and how that might effect the euro zone coming to the for and hitting the u. S. Markets hitting very hard. Josh brown is joining us on the phone, as well. So, josh, what struck all of us, the momentum to the down side, better than 150 points lost in just the last hour alone. What does that tell you about what to expect on the open tomorrow morning . Is there more pressure, do you think, in the market . Well, i think whats interesting is that this coincided with some bearish diver jenses beneath the surface, so to speak. If you look at the Leadership Groups of last week, you saw that rotation away from small caps into more of the consumers, the utilities. And thats not really the group you want to see lead. So, i think people stuck around and basically said, look, well ride this. Well stay long the market until it gives us a reason not to. Today, you got that reason not to. And, so, theyre going to look back and theyre going to retro fit this italy thing or the spike in the yen, or whatever theyll say, but i think tomorrow is maybe a low conviction bounce. People are going to look at the fact that bernanke is speaking and theyll hang their hat on that, say, okay, maybe we want to take some exposure off, but lets see if theres a bounce tomorrow. So, i would let that play out. I would not be convinced, though, if we have a decent opening tomorrow, because this morning was a good opening and you see how low conviction a lot of the money in this market is. People are looking for an excuse to sell. And i think another selloff will give them that same excuse. Josh lipton, can you tell us, i mean, based on what was hardesthit today, i mean, are there defensive plays that did better than others, or how did that play out today . Just everybody throwing everybody out today . If you look at the s p 500, the benchmark gauge, what were the sectors getting hit, it wasnt a surprise you saw the financials, Energy Materials getting hit. To joshs point, i think, listen, im not minimizing what happened in italy and i think youre going to have questions about whether a new government there is really going to be committed to that reformist agenda. I think youre going to hear vat gi strategists really focusing on the spreads of yields and italian tenyear paper versus german tenyear paper. But to joshs point, i think, listen, we had an incredible run. A lot of people were waiting for this pullback that people were waiting for. Some guys, like tom lee, a bulls bull, he told his clients this week, near term, he didnt see a lot of catalysts that were going to move the stock market higher. Remember the headlines. A lot of them unfriendly. Gas prices, tax increases and march 1st, sequestration. Hey, guys i got to go josh brown. I got to go, sorry, pal. And i promise not to make any jokes about you phoning it in. See you later. Thank you for joining us, guys. Today, the dow and the s p had the worst days of the year after opening strong. What will tomorrow bring . Of course, youll only as good as your next trading day, right . Indeed. We have a panel of wall streets top money pros with so insights for the session ahead. Thats next. [ male announcer ] we created the luxury crossover and kept turning the page, writing the next chapter for the rx and lexus. This is the pursuit of perfection. [ male announcer ] you are a business pro. Executor of efficiency. You can spot an amateur from a mile away. 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We have Scott Carmack from leader capital. Mason slain from Interactive Data and t. Doug dale from security. Scott, item us what you are watching tomorrow. Well be watching the kay schiller composite index. They are looking for a 6. 6 increase yearover year in home values. Well be looking for new home sales. Market expectation are for 380,000. We think both surprise to the upside. This market is concerned about the fed ending qe. We think economic strength begets market weakness. Look for strong Economic Data to drive the dollar higher