monetary and fiscal stimulus we had right after 2008. without the ammo here in the u.s. and without the trust that china can pick it up, it s a bad cocktail. rana foroohar, thank you so much. joining miss is alison kosikosik you ve been here all day with these traders. what a day. down 1,000, then up another 800, then down where we are right now. this is why they make thor neck braces for days like this, when you go thus they roller coaster movers, talking to some of the traders, when they saw the opening bell and the dow drop, there was shock. traders told me you could hear the noise level in this on this exchange and stephen through a lot. they are genuinely surprised. this was oh, my god. one told me he was about to pass on the when he sauce this
losses that we re seeing. it s a worry for trades because we haven t seen this type of volatile markets over the course of the past four or five years. reminds a lot of people there are down markets to be had and just one idea what we could see. let me go back to oil for a second. what the low price of oil people see in the united states gas aaa announced 2.19 a gallon. that feels like good news. why does the dow drop. it is good news. good news for the consumer. gasoline prices are about $1.10, $1.12 lower than they were a year ago. that translates in to a huge boom for consumers. they can save a lot of money. that s a short term fix, though. because consumers can do that for a while but what happens when the companies that churn out this oil or have these jobs that pay these people start to maybe feel a little bit of that pressure? does that hurt job growth going forward?
down this morning. in japan, the nikkei fell nearly 2%, also following the sour mood in the u.s. here in the u.s. right now, a stock to watch this morning, microsoft. it s higher, sharply higher, up 3.5% in the premarket. xbox was a big seller this holiday season, 7.4 million consoles flying off the shelves. overall, microsoft s sales were up 14%, helping the company bring in better earnings. another stock we re watching this morning, starbucks. it is also up 1.3%. stronger earnings raised its forecast for how much money it thinks it will make this year. microsoft, starbucks, two to watch this morning, even though the dow is looking like it s going to be lower. yeah, the dow, you know, down big. who would have thought we would have had a dow drop and justin bieber getting busted in the same day? maybe there s a connection. i m not making that connection, but it could be that investors were bearish after bieber. the bieber bear. all right, who knows where justin bieber is waking u
street. we ll see the dow drop 100 points. but we are not going into default september 17 midnight, period. martha: when would we. they are saying if you don t raise the debt limit, they are saying there would come a point where you wouldn t able to make those payment. eventually you do go into default but that s way down the road. that $200 billion just more october pays your debt service, it also pays social security. it can be met in the 0 month of october. martha: it s like when you use assets to pay your credibility off you eventually go into bankruptcy. eventually you do, but not october 17. bill: twin terror raids in the continent of africa resulting in
a missing persons report was even filed. inside this really strange and bizarre story, straight ahead. and power right in your wallet. a new iphone charger the size of a credit card saves you when you run out of juice. we ll show it to you in 20 minutes. newsroom begins right now. good morning, i m zoraid zoraida sambolin sitting in for carolyn costello. penn state faces the stunning blow from jerry sandusky. they face the penalties of the school s cover-ups in the scandal. the penalties are described as unprecedented. steve is in pennsylvania where they re holding the news conference. what can you tell us? we re meeting with the executive chairman of the ncaa followed by a question and answer session in indianapolis, and we re expected to hear penalties on penn state university. one source familiar with the case told cnn what we will hear, that penn state will be hit with fines in excess of $30 million. reports are also circulating that penn state university will lose