Excessive media coverage. This is charges that were announced today against two former jpmorgan employees. The bank lost more than 6 billion. Wait until you hear more of the details on this one. The upward spike began yesterday for apple. Karl icahn had taken a Large Division and apple. He felt it was extremely undervalued. I spoke with him yesterday. He said, yes, we are in. We know that it is apple. It has already made more than 60 million. Violent clashes between the military and supporters of the Muslim Brotherhood over and egypt. Egypt stock exchange, lowes today. Todays the countrys index dropped about 2 . We will, of course, watch it all night and tomorrow. We have breaking news for you. Just about an hour and a half ago, there were some unscripted comments. The market immediately took a dive. Lets go to peter barnes in washington. Peter we have more fed speak on when the fed should begin tapering. It has been a big issue for investors. He will be giving formal remarks in a speech on Monetary Policy which we expect will cover some of this. He will push again to wait on dialing down quantitative easing. He said inflation has been running very low. I have been concerned about low inflation. He said it is important for fed credibility to hit that target that it has set for itself. There have not been much indication so far. Markets are trying to digest this latest paper talk. The ten year treasury is about flat. Since bernanke, the fed chairman, made those original tapering comments back in may, the yields have gone from 1. 9 to 2. 17 . An etf for the homebuilders is trading lower and is down over 9 . Liz that would be, of course, jpmorgan, wells fargo. Thank you very much, peter. Watch the ten year. We can actually put that back up so people can see. Definitely watch the homebuilders. We are waiting on James Bullard to start speaking. Every time somebody inside the fed makes public comments, the market tends to move. We have now told you what to watch. At 1 30 p. M. Eastern time, as soon as he made some comments, the excessive inflation risk continued in the dow hit and intraday low. Lets get to the traders. He also said gdp has not been so hot for a couple quarters. Not a huge newsflash. One at that tend to mean that tapering is further down the road. I just try to keep it simple. The information age, the fact that he had on the market was magnified because we are in the del jones of august. There is nothing else to talk about. When he first spoke, the market spiked to the upside. The market turned back down. It is inside the spectrum or the prism, if you will, of the trading that is going on right now. There is no trading volume. We will see tapering in september. I firmly believe that. How much is yet to be seen. Right now we are seeing a tool. The quantitative easing was a tool. He is engaging in the tool of jawboning by moving a market in anticipation of a move that will happen in september. Liz do not rock the rotary club until you have been to cleveland. What happens if james get out and says what he said at 1 30 p. M. Eastern time, but with a little more drama to it . I will go the other way and say i know that 65 of economists surveyed said we may have a taper in september. If they do taper, it will be a policy decision, not an Economic Health decision. They will have to climb down from their data dependency. Liz okay. Lets look and see. If you look at commodities as soon as this starts to develop, we see a little bit of gyration. More players in the market. We have the numbers coming out. We have all of this play. It looks like we made a top. It looks like we are pretty top liz wow. Good to see all of you. We have it all sorted out for you. Thank you, gentlemen. Investors not shopping at macys today. It is kind of unusual. The stock falling today. Lauren, to be down at the new york stock exchange, a little unusual. Macys has done well lately. Macys beat expectations for 25 straight quarters. Shares are down 4 . The third biggest loser on a percentage basis. It is a consumer story. We have seen this story with some of the other stocks that have been reporting. Macys is one of the bigger retailers to report. This is raising red flags with others that have yet to report. Liz thank you, lauren. We will get to apple in a minute. Do not worry about it. The closing bell ringing in 50 minutes. When just about anybody speaks from the fed, the markets tend to move. We are ready to give you instant reaction. Plus, blackberry. Moving slightly higher today. Did it really pass on a secret save your . We are talking to a Silicon Valley entrepreneur who tried and failed to save the company. What was his plan and will he be among the alternatives today . He is with us live. 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; ane, feet or body swelling; enlarged or painful breasts; problems breathing while sleeping; and blood cls in the legs. Common side effects include skin redness or irritation where applied, increased d blood cell count headache, diarrhea, vomiting, and increase in psa. Ask your doctor about the only underarm low t treatment, axiron. Liz we are off the lows of the session right now. We have been down more than 134 points. Here we are down 83. We really need to hold the level. Clearly, we are below it at the moment. A quick check at u. S. Air. 15 loss here as the department of justice jumped in and said, guess what, we will stand in the way of the merger. We have lawyers now commenting. Do not assume that this merger will not happen. They will fight it. They are for it. Watch that. We are now exactly at 3 15 p. M. Eastern. James bullard has remarks about the challenge of bollettieri policy coming into the markets once again. We go back to peter barnes in washington for the details on his speech. Peter he calls it an update on the tapering the faith. He says the Committee Still needs to see more data on macroeconomic performance for the second half of 2013 before making a judgment on this matter. Furthermore, he is calling for press conferences after every meeting rather than every other meeting. He thinks that all of this is so important. He is concerned about improvements in the labor market. In some points they have improved. He says some alternative measures labor Market Performance remains weak. He is also worried that inflation remains too low and allow the feds target. It looks like he is not, he would not vote for tapering as soon as september. Liz all but saying he will not vote for it. Lets bring back our traders. The minute those comments hit the tape, what did we see . The dow fighting to make a come back here. What do you think . I think it would have a far greater reaction, far more volatility and a negative reaction if, in fact, we do not get tapering. This is turning keys baby. He wants his thumbprint on the economy. He will get it. Liz scott, he is one voice. If you continue down the route of number one, data dependency. Number two, more cuts. They will not want to upset the card anymore then we will rd do without any tapering. I think that is why we do not move at all. Mark my words, he is starting to show you that they are worried about deflation, not inflation. A new worry. There will not be any taper anytime soon. Liz lets repeat the quote from his speech. They need to see more data coming in through the second half before making a judgment on tapering. I have no problem with that. I have no dow in my mind that i would fill the position based on the idea that we will in fact see tapering in september. I think his chairman that we will be replacing, who wants to go out in history as being the engineer of the greatest, he wants his thumbprint on it. That means tapering in september. Liz show me the homebuilders. You tend to see the homebuilders not do as well. At the moment, it looks like there will not be tapering, although, i am not saying that. I would beg you to take a look. Take a look at where the homebuilders came from. The smart money jumped into that side of the equation. They are up over 150 from their lows. This is normal profit taking a correction. Liz love metric are you looking at if not the homebuilders . I am looking at gdp. Liz okay. So much for whatever attempt the dow is making to combat. The dow is still down about 19 points. Thank you to ben willis and scott. We have the closing bell ringing in 40 minutes. Of course, we will watch the markets. Is blackberry right for the picking, or is it dead on the vine . We are talking to a silicon mover who was already way ahead of the game. Plus, is he still interested in a smart phone maker . We will see. The summer driving season could mean lots of road rage. Which drivers are the most aggressive and which cars do they drive . We will bring you the answer. There apparently is one according to some people. The boys used double miles from their capital one venture card to fly home for the big family reunion. You must be garths father . Hello. Mother. Mother traveling is easy with the venture card because you can fly any airline anytime. Two words. Double miles this guy can act. Wanna play dodge rock . Oh, you guys and with double miles you can actuay use, you never miss the fun. Beard growing contest and go win whats in your wallet . Bounce is great because the freshness lasts for weeks in the drawer. Why cant everything stay fresh that long . [ male announcer ] how do you get your bounce . [ man ] lasting freshness. Liz let me ask you a very aforesaid questton, if you were drowning and someone threw you a life per server, wanted you grab it . Long before the company decided to seek alternatives, there was a secret plan out there to save the company. Jo ling kent joins us now. And entrepreneur and investor he knows anything about success. When he saw blackberry in crisis last summer, he gathered a team of elite people. Why did you propose it . I build and invest in smart phones. Here we sell a company that not thrown out of the way. They did not know how to ride the wave. We thought we could reinvent a new surfboard and get them back on track. We saw what was happening. We said, look, this is really incredible. They have great assets. They had an incredible customer base. You cannot pry it off of his hands. A long with apple, you know, a true company with emotional qualities. Then, at the same time, you had a company chasing the wrong fight. Going after apple and google with their media resources. A company with about 3 billion in cash. It felt like david and elias. There were two goliaths. David had a slingshot. You figure out how it will play off. This is not going to play. It was just going to be slow. We knew that if we put together a plan and presented to the management team, of course, they were just six months in. It would not be something where they would say guest, you are a better team. We will stuff off. We went to the board. We said, can we talk about a fresh approach. An opportunity to rebuild and read imagine this company. You basically pitched three devices that you should focus on. We pitched a focus around the enterprise. We said why dont you focus on the enterprise which is your heritage. You have a tremendous amount of momentum and proprietary of support. Could you create a company from end to end . The iconic hardwarebased keyboard and, of course, the touch paradigm. You guys raised north of a billion dollars. These team members are very, very visible executives at very successful mobile companies. I have to do, i have to ask you a question, would you do it again . Liz you guys sound like you assemble a team of the smartest of the smart. When you met with the blackberry board or the blackberry team, what was it like . Did they seem in disarray . I remember a period of time where top executives were getting kicked off airplanes and everything was falling apart. Some people ask us, you know, who is backing that billion dollars. Basically, customers. These are rich guys who do not want this company to dive. They said lets save the company. Liz there are more than a couple of us here. Spooner probably now 30 . It still has a tremendous amount of legacy. Especially here in the business community. Liz great to have you both. Let us know if they call you back. Thank you very much. Fascinating stuff. A secret plan to save black very. Closing bell ringing in exactly 30 minutes. Bernanke approaching a pivot point when it comes to the feds monetary stimulus. Have they created an asset bubble . Is there a way to play the bubble . We gave it up for you and what a difference a single day makes. Does the tech giant have any Game Changing products in the pipeline that will keep it levitated . We will discuss all of this as apple finally today went about the 500 a share mark. If youve got it, you know how hard it can be to breathe d man, you know how that feels. Copd includes emphysema and chronic bronchitis. Spiriva is a oncedaily inhaled copd maintenance treatment that helps open my obstructed airways for a full 24 hours. You know, spiriva helps me breathe easier. Spiriva handihaler tiotropium bromide inhalation powder does not replace fastacti inhalers for sudden symptoms. Tell your doctor if you have kidney problems, glaucoma, troublurinating, or an enlarged prostate. These may worsen with spiriva. Discuss all medicines you take, even eye drops. Stop taking spiriva and seek immediate medical help if your breathing suddenly worsens, your throat or tongue swells, you get hives, vision changes or eye pain, or problems suddepassing urine. Other side effects inclu dry mouth and constipation. Nothing can reverse copd. Spiriva helps me breathe better. Does breathing with copd weigh you down . Dont wait to ask your doctor about spiriva. We replaced people with a machine. R, what . Customers didnt like it. So why do banks do it . Hello . Hello . if your bank doesnt let you talk to a real person 24 7, you need an ally. Hello . Ally bank. Your money needs an ally. Weekdays are for rising to the challenge. Theyre the days to take care of business. When possibilities become reality. With centurylink as your trusted partner, our visionary Cloud Infrastructure and Global Broadband network free you to focus on what matters. With Custom Communications solutis and responsive, dedicated support, we constantly evolve to meet your needs. Every day of the week. Centurylink® your link to whats next. I am Ashley Webster with your fox business brief. U. S. Households are holding less debt according to the fed Household Debt including mortgages, credit cards and auto loans fell by 78 ilion dollars the Second Quarter, the lowest level since 2006. Americans are Getting Better at paying their bills. The delinquency rate has fallen to the lowest levels since 2008. Prices were flat last month with inflationary pressure. Prices came in unchanged from june as a cost of natural gas and gasoline fell. They were expected to rise by three tenths of a percent. Euro zone gdp fell in the Second Quarter into the first quarter. The economies of germany, france and portugal signaling an end to the recession of six quarter downturn. We now continue our countdown to the closing bell with liz claman. Liz just checking, cisco moving higher ready to report the thirdquarter earnings. This is so important of a company, looking at the cloud business, security and routers and switches. Demand from companies for those items. The earnings popped into the green. Cisco reporting earnings for the fiscal Fourth Quarter at 0. 51 per share, on revenue of 12. 41 billion. We will bring you the results as they happen. We found out this morning the euro zones out of a recession. 20 of sales, that could be a positive, and of course the u. S. Market 60 of their sales. So much to watch with demand from telecom, other industries and the federal government for those data services. Liz so glad you said that, that has been the big . Since w the sequester. The government business. Those numbers come out after the bell. The dow may be up this year, but portfolio founder and president with the coming of the bond market collapse things we are still flirting with a recession, but when you talk about the word collapse you are warning us now but we are here to talk about the way people could invest that. First off, lets get to quantitative easing. You just heard the st. Louis fed president. One minute he is saying dont do it, the next second saying taper. We better not taper i. Liz the headline was we still have to wait to see more data. Four and half years of qe, five years since the collapse of the Housing Market we still have to wait. Lets just get the Balance Sheet up to me before trillion. Liz lets show some stunning numbers. What the market has done since qe began in september of 2008. The nasdaq has seen a 60 gain. The dow 39 again. The trade was obvious, equities. What is the trade now . I went long, january of 2009. Most people thought i would be bearish forever. Liz and you ppobably had a little bit of angina when you saw the lows. Lets get to what the trade is now. Treasuries have a ton of cash. It will be very challenging for investors. Japan is going to blow up in the next three months. Raise taxes, spend a lot of money in the government and drain inflation. That is a great idea. Liz ru shorting treasuries . Yes. Liz how do you do it . Anybody can do it. Liz that one indicates the short treasuries. I have the single short. Liz inversely move doubled what happens. It has already had a nice move the at that is just the beginning. The averages 7. 3 , we have a long ways to go. Even back to the spring of 2010 the 10year note was 4 . That is where we are headed. Liz what are you long right now . Cash. This tapering will be a miserable failure. He will start tapering from 85, maybe 60 billion per month. That is tightening. Tapering is tightening. The yield will spike, and that will bring more pain upon the Housing Market. Liz these are both down doubledigit percentages. As soon as tapering begins, backtrack on qe, it goes fullbore into these stocks. Liz what do you like about them . They have a dividend yield above 3 , believe that, what a nice play. Liz lets let people know for a lot of this discussion, you like at least a small and mid caps, and you have made money in particular with one etf. That has been very profitable for us. That is a highyield in a small cap. Liz would you stay in this . I am looking to buy a lot more. I think the next three months will be very challenging. Japan, cisco, washington, d. C. , once again and the tapering. Once you get out of that you have to pile into these stocks because the tapering talk is going to end probably in the first quarter. Liz for those who follow my twitter feed, you would notice lately i have been hammering people who have been naysayers and wrong. The difference is you went long in 2008, 2009 and it has been a winning trade for you. Thank you very much. Thank you for having me. Liz will put all of his ideas up on facebook. Com lizclaman. Founder and president , and the author of the common bond market collapse. The closing bell ringing in 18 minutes. Carl icahn tweets and shareholders rejoice. Pushing above 500 for the first time in seven months. Mothers payoff in the long run . Breaking down what apple needs to do. And hearin pairing him with a fd manager. He is holding has been apple. What he thinks about the big bet. What make him add the position . Liz finally apple shareholders, shares of apple surged following carl icahns tweet yesterday that the billionaire phenom is taking a large stake in the tech giant. Today apple shares continued the climb and this time above the 500 share level for the first time in seven months. Could the euphoria last . Remember the stock was 704 back in september. What will this activist shareholder really do for the company . Lets bring in apple shareholder and a coverage analyst to break it down for us. Josh spencer, Global Technology fund manager. Largest position in the portfolio. S p cap like you senior director. First of all, you were there well before carl icahn, also as a billionaire investor jumped in just announcing it today. 14 of the fund. Thank you for having me. It has been a lonely time with apple this year, if you look at the performance of most stocks, apple has been a leg or, lot of room to play catchup. Liz are you sitting there saying finally these guys see what it is, why was is not enough for apple believers to move the stock forward . I guess im leading you to not enough in the pipeline, that is what critics say. Unusually so from their perspective since late last year we had not seen anything new. Luckily he may be coming in at a time in the Product Pipeline is starting to reaccelerate. He may have Perfect Timing here. Liz you have a 550 price target. How soon before you believe it gets there . Of a 12 month target. It has been a challenging past year for apple. Obviously the stock peaked a little less than a year ago, but if you look over the last year as josh reference, apple is down 20 and the s p 500 is up 20 , so clearly there is room for catchup at the least, we think. Liz i believe, tell me if im incorrect, 147 billion in cash on the Balance Sheet stock, isnt a lot of that oversees and therefore not able to be put toward specifically what carl icahn is demanding. If we look at what carl icahn has done over the years, one of the things you have seen is a call for not only more buyback activity, but tender offers of large amounts stock in addition to calls for debt issuance. Apple is very successful with a bond issue earlier this year and we agree if they were to do a far more expanded buyback, they would probably look to issue some additional debt, and in fact they have the financial possibilities to do that. The cash overseas would give them the financial wherewithal to do that as opposed to being used to doing that and pay the reappreciation act. Liz you talk about the pipeline. Android is dominant still, lets be honest about that. People love the Samsung Galaxy as well, so what is in the pipeline that gets you excited . On the samsung front i would say the last six months apples business is a little bit more resilient. At a time when the pipeline was stale, now we hear the chatter of two new iphones being built at the launch next month. A lowcost model and the iphone 5s with a fingerprint sensor. I see these reports out of asia and on the blogs. People may be excited by what apple has in the Product Pipeline, and there has been a lot of talk about the watch. I think that is a wonderful idea you think of all the people you see in the gym or out watching with the ipod strapped to their arm, why not iwatch . Liz doesnt this iphone 5s and iwatch really have to dazzle . If there is even a sense of disappointment, wouldnt this hurt the company and tim cook . I think it is fair to say a lot of what we do is predicated on what the expectations are. They have increased pretty substantially over the last couple of runs indicated by the stock price. The anticipation is going to build, and i do think apple needs to deliver. That being said, dont know if wwere going to be expecting a line around the apple store on fifth avenue, not that far from your offices. In the context of thinking about hoping for and wishing for new apple products. The company can still be a strong grower at a strong valuation and be worth buying at this point. Liz shorter lines in new jersey, everyone. Great to see both of you. Interesting perspective, we will have you both back. We are about six minutes away from the closing bell. That members breaking in the last hour. More importantly, the reaction. [ male announcer ] imagine this cute blob is metamucil. And this park is the inside of your body. See, the special psyllium fir in metamucil actually gels to trap some carbs to help maintain healthy blood sugar levels. Metamucil. 3 amazing benefits in 1 super fiber. [ babies crying ] surprise your house was built on an ancient burial ground. [ ghosts moaning ] surprise your car needs a new transmission. [ coyote howls ] how about no more surprises . Now you can get all the online Trading Tools you need without any surprise fees. Its not rocket scienc its just common sense. From td ameritrade. Liz we told you earlier about key comments from the fed president who is a Voting Member of the federal reserve, the nugget the fed was looking for. They need to see more Economic Data before deciding to scale back its bond buying program. The market kind of started to move higher, didnt do much. Now it is simply unchanged. Feeling the real gdp forecast were way too high. He is not happy with the gdp numbers. He does not think 2 is worth anything. David i disagree. We could be so much stronger than we are right now. Homebuilders got a little bit of a break because the rates were basically flat today so if youre looking for some good news, there is some good news. The volatility index as a reflection of the market still under 13, historically very low. Lauren simonetti at the new york stock exchange, apple is way up again. Under 500 now, but it was up most of the day thanks to one man, carl icahn. Liz you got that right. 498. 30. If it closes above 500, that would be the First Time Since january 23. Not bad. Liz we are watching cisco. Finally picked up, said report numbers in just a few minutes, the stock trading up, nicole. What will you be looking for . The types of companies whether it is the government, the Telecom Industry that says they are using cisco data and things like that. That stock is up heading into the close. David airlines down again today over concerns of the government squashing the deal between american and u. S. Air. What is the latest . Jpmorgan came out and downgraded a few of them. Some reasons they are down again today. David the bells are ringing, they are still cheering on wall street. Iyou think how the market has performed since the beginning of this year. Only six times in the past 40 years, by the way the market has performed as well as it has over the past six months. A down day once in a while is not necessarily a bad thing. Liz time for the top headlines in the past hour. New feds talk on Monetary Policy, a Voting Member of the fed policy Committee Says the fed should definitely have more data before it decides to taper its effort. David oversees it has been a bloody day in egypt. At least 149 people have been killed in clashes between Security Forces and the supporters of mohammed