Midaugust swoon on wall street t. Dow posting the lowest decline since june. All time high set two weeks ago. Bob, what did you make of todays selloff, bob . Well, it was the worgst in six weeks for the dow. Worse than actually two months i believe for the dow. Im still settling down here. The important thing is, look, bottom line, it was right across the board, risk reduction. We saw consumer stocks. Everything was down 1. 5 to 2 . Look at the dow, after 10 00, we essentially flatlined around 10 00. We ended near the lows for the day. Heres the two headlines we have been talking about all day, whats fair value for the ten year in neb knows. Thats the biggest single issue down here. If you tell me the answer to that, ill tell you where thing will be going. We are not talking the growth. Cisco, macys, walmart throwing that Earnings Growth picture into some kind of doubt t. Result is that risk reduction. I would note moderate volume throughout the day. How about the bellwhether blues, thats what were calling it when you got cisco and walmart, both big dow components coming out with disappointing commentary overall. How about gold . Gold popped to near twomonth high today a. Lot of people were talking about that. Commodity stocks moved up. We had a very interesting drop in the dollar shortly after gold picked up, copper has been up for several days now. Alluminum an zinc. Overall, home builders, well, we had excellent Home Building sentiment numbers today, very good. One of the only groups, this group declined about 20 from the highs we saw in may. A lot of people whom i talked to said this was a time to now consider getting back into the home builders. Take a look at how far off their highs. Some of the big names, horton and kb home. Toll brothers is in the moveup space. You will see they were all down. There was a differentiation. The most finally, maria, that 10year intraday. Tell us what the value is . Nobody knows that. The next big event, i was talking to the traders, jackson hall, august 24th. They are so desperate for any guidance in where this ten year ought to be that people are now tuneing into whoever is going to that vent. Joining me now to help break down the day, heather hughes, rob morgan from full crum securities. Allen gayle from ridgeworth and rick santelli. To what would you attribute such negativity . In the ridgeworth strategy, im always looking for tracking entry points in reasonably valued assets that have improving macrobackgrounds. I think the information we got on the macro front is encourage. So when i see a selloff like we got today, i would view it as an opportunity to add positions in equity. Im more inclined to add on the international front. We want to get to dell earnings. Dell is out right now. John has the numbers. What can you tell us, john . Not too bad, maria, based on what wall street was looking for, dows revenue comes in 14. 5 versus an expectation of 14. 18 earnings per share. Nondak at 25 cents versus 24 consensus. Dell is no longer giving guidance. It appears from my look at this that end user computing, thats pcs, down year over year less than they were last quarter. Last quarter, they had a 9 decrease. This quarter, theyre reporting now a 5 decrease to 9. 1 billion. They have highlighted the Enterprise SolutionsSoftware Group revenue was actually up 9 . Is the future of dell. Many would argue its an area where michael dell certainly would like to focus if he gets to take this Company Private ap move him more away from pcs into i. T. Solution, areas like this. So i think perhaps some people were expecting negative results given that dell is announcing it early. Theyre at least from the first cursory glances, will is a lot to like in this. We have to pour through and do analysis. Dell is not actually doing an Earnings Call on these results this evening, maria. All right. John, stay with us. We will get more reaction. Joining us is a Senior Technology analyst with the maxim group. What can you tell us in terms of these dell numbers . Whats your take . Maria, looking back at the expect aition, i think your results across the board were bet beer than the consensus expectation. Again the company is a price aggressor in the market, continuing to maintain their shared momentum on the interside prize of the markets. The near term the trends of dell given the macro backdrop. Okay. But the macro backdrop doesnt seem like its getting any better, right . I think, overall, the pc unit declines are double digits. If you look at it the second half, maria, you see the peak of the cycle is installed based on windows xp to windows 7. So that should benefit dell. Looking out at 2014, i think it gets much tougher as we put that behind us. What would you do if you were an investor if dell right here . I think near term i think if you look at fair value on a fundamental basis, we are looking at 7 to 9 on a standalone basis. Thats afforded to pc our client based companies, hewlett packard, western digital. But given the offers on the table, we think we gain the fair dollars in the fifteen 13 to 15 range for dell. John, any thoughts in terms of why dow moved up the earnings reless in. You know, i dont really know why they did that, maria, Something Interesting i will point out, after hours at least the stock is up near 1380. When you consider the amount that michael dell is offering for the company, 13. 75 per share, it might be interesting to talk about what investors are expecting to happen next. Clearly, these results are good. Is that good for michael dell . Is that bad for michael dell . Does this play into carl icahns argument, maria . Thats an important point we look at the stock trade here after hours, pretty active. 13. 79. Thank you, john. We want to get back to these markets. Rob morgan from full crum security. And our own rick santelli, heather, you have also be been bullish. Allen just said when you see a market like this it gives him poise to put new money to work. Would you put new money into this market here . Judging on the last hour of the day into the close, we didnt see bids, i am not getting the warm and fuzzy feelingings at these levels. I understand you stated some of the statistics in the beginning of the program. This is also the largest weekly decline that weve had in the past four months in the dow jones. So as far as animal spirits in august, they may remain tame right now and you will see volatility and volume, increase perhaps after some of the main september events like fed taper talk or jackson hole on the 17th of september. Yeah, i guess what we learned today was that it really is all about the consumer. You know, twothirds of economic activity. But walmart disappoint with the guidance, cisco cuts 5 of its work force. So rob morgan, is this market now focused on something other than the fed. Is this market now turning its attention to the whied that the economy is not doing much. So regardless of whether the fed is going to be there the next couple of months, we are seeing a real weakening. Maria, obviously, the market was focused on walmart earnings today, which were weak in kohls, ciscos bad guidance be you the fed is still looped in there. Part of today is a kevin that the fed is going to taper in a way that is detriment am. So i think that concern is still out there. Its kind of like the sword of damacles if you will. I tend to agree with a what allen was saying, it was something was ignored today, weekly and initial jobless claims hit a sixier low. Id be putting more money to work here, too. We want to get back to you in a moment, dan, on. That i look at domenic chu. He is covering nordstrom earnings. What do they tell us given what we heard from walmart today . Again, a lot of a mixed picture with john in order strom. The bottom line, 93 cents. Beats the analysts estimate of 88 Cents Per Share. You look at the top line the sales numbers. Some of the problems manfest themselves, 3. 3 billion is what analysts were expecting, sales from nordstrom at 2. 2 billion. Nard strnordstrom cuts the full sales fiscal 20 thrown will be up 34 . Wall street an liths were on average looking analysts were on average looking for a share t. Nordstrom shares are taking a bit of a dive right now in the after market on the heels of this. So earnings beep, a sales miss, they do lower their forecast. So, maria, it tells you a little bit more about the overall consumer picture specifically on the higher end of things. Domenic, thank you very much. We want to bring in warren. A tough day, down 225 point. How would you characterize todays trading . Very interesting. The dow broke its 50day average this morning. Sent people into a bit of a panic. The one thing i would say is obviously there was quite a bit of selling today, but it almost fell it was more a lack of any support on the buy side that sent this market lower, not just massive panic selling. So if you want to take away a positive out of the action we seen today, it might be that. Does it feel like it continues going into tomorrow . Ralph has been bullish on this market for a long time told me earlier that you probably want to take some profits until he feels that we have reached a low and he doesnt think we have reached it yet. How do you see it in. Well, i think, you know, i have been very bullish the last number of months. The last week, markets felt very tired. We are coming into that typical period, end of august, beginning of september, its usually a light period, so any move him, any Directional Movement one way or the other will have an exaggerated effect. I would say this would be a little more of a pullback. I dont think we hit bottom yet. Again with eneed a catalyst to indicate, we hit the floor. I dont know what that means. We pay have to wait until the nonfarm payroll in september. It leaves a gap here. So i would be a little cautious right now. You are cautious. Allen, you say when you see a market down 225 points, this gives you poise to say, you know what, this is a buying opportunity. Did you put money to work . We are looking for those undervalued assets. So the last trade that i did was to add to the international space. We like europe. We particularly like germany. We think the valuations are good, that pickup in the pmis we have been seeing, increase in gdp as you well know all suggests that the worse is the over. So at the margin, we think there is some good value. I have been Underweight International at some time. Are you rebuilding international. What does that tell me about the u. S. . Cisco told me real stories about the u. S. Well, about Second Quarter earnings, i think that what i have been seeing in the macrodata looking at the new orders and the like, yes, sales were weaker, new orders suggested were going to have better momentum the sec half of the year. So from a sect zor standpoint. I get you one second, heather, rick santelli, it feels like today, at least, the market focused on the idea that the economy is anemic sputtering along as opposed to bad fuse meaning food news that the fed is going to be there. You know, i think the market is a lot Like University of michigan sentiment. It doesnt leave the stockmarket. The stockmarket leads the feelgood endis cease. I do think when you are down 225 points, everybody looks at the markets from a different set of class ifs. Other than the two earnings, i dont want to dismiss them. They were big, those misses, i think not a lot has changed. We have gone from all the economists thinking the next quarter will be a stellar quarter to all of a sudden everybody hating it. What i look at is weve really seen a steady eddietype treasury market. I continue to think how your rates will not be good for the economy. I think the stockmarket willed a why you town. Heather hughes what are you seeing here . We are seeing stock selloff and bond selloff. The next six weeks historically have been a challenging time to invest. Well leave it there. Thanks, everybody. We appreciate your time. Well see you soon. We will be watching this market down 225. My next zbes not afraid to admit when hes wrong. Many of you may have made the mistakes as Dennis Gartman has. Later on, who will buy blackberry . There is pause on the street lenovo should. We will speak with lenovos president gary smith. Well be right back. A Big Initiative on the closing bell. With axiron, the only underarm low t treatment. Axiron can restore t levels to normal. Or anyone younger than 18 or men with prostate or breast cancer. Women, especially those who are or who may become pregnant and children should avoid contact where axiron is applied as unexpected signs of puberty in children or changes in body hair or increased acne in women may occur. Report these symptoms to your doctor. Tell your doctor about all medical conditions and medications. Serious side effects could include increased risk of prostate cancer; worsening prostate symptoms; decreased sperm count; ankle, feet or body swelling; enlarged or painful breasts; problems breathing while sleeping; and blood clots in the legs. Common side effects include skin redness or irritation where applied, increased red blood cell count, headache, diarrhea, vomiting, and increase in psa. Ask your doctor about the only underarm low t treatment, axiron. Welcome back. A lot of movers and shakers today, domenic chu on a tough day at the office. Not just for everybody. You talk about the Early Morning session, walmart came out with disappointing results. Now we look at the tech sector. Applied materials is what we want to talk about. Overall, they come out with earnings that narrowly miss analysts estimates. 19 Cents Per Share is what they thought theyd report. 18 cents. 19. 8 billion. 2. 06 billion is what average wall street analysts were expecting. Another big piece of news for Applied Materials is on the person fell side of things because michael splinter is no longer the ceo. He has been elevated by the board of directors to be the new executive chairman at Applied Materials. In his place will be again gary dickerson. He is the new ceo over at Applied Materials. This is a man with a storied career in technology and semi conductors having served as the ceo before they got bought out by Applied Materials and was previously an ex executive with kola 10 core as well. Again, a big story with Applied Materials, it is about a demand story for them. Are people continuing to buy the equipment that makes semi conductors, that makes computer chips. At least here were seeing weakness, the stock is down just about 3 in the after market trade. All right. Domenic, thank you so much. The market decline continues today, Dennis Gartman says he made the wrong call getting back into equities recently. He joins me now with bob dahl, who is with us by telephone. Thank you for joining us, gentleman. Dennis, you recently got back into the market. Yes. You say you may have been wrong. Well, the market tells me im wrong. Its only one day. No, its two days, troublely. If a market moves me by 2. 5 or 3 that is an egregious move. It tells me im wrong. I came back in early. I had opinion very bullish. Got out on the nonfarm pay roms. Got back in two days ago. The market is telling me oil wrong. Im going to the side line, long gold worked today, long cotton, long net gas, that worked, my trades in the stockmarket terrible, i want out. Yeah, you want out. In other words, you think the selling continues . I couldnt hear you, maria. So in other words, you think the selloff continues . Im afraid that it may well. Weve heard a lot of talk about the hinden bergullman, i dont Pay Attention when you get one of those, or two of those. Give me five or six or three or four in a couple of days, anybody who doesnt pay heed i think is foolish. That was enough this morning. I actually told people, im nervous in the news letter, perhaps its not a bad time to follow puts. I wish i had followed my own advice. Bob, are you with us on the telephone . All right. Bob will be joining us momentarily, get his take on this move downward, you know, we were talking earlier with rob about this, dennis, in terms of how much further we could see this market decline. What would be your expectation in terms of the right metrics to lock at to indicate whether or not there is a lot more selling to come . Well, if you start breaking down through 50 and 100day moving averages, if you start to do that, there will be a lot more damage implied. Its a long way down to the 200day moving average. I dont think that will happen. Its a long way down to major trend lines. Its probably the summer doldrums. It is probably nothing more than a lot of people like myself got a little too aggressive. Feeling a little uncomfortable. Seeing technical circumstances disconcerting. Seeing them prevailing in egypt, say, you know what, labor day is coming. Lets go to the sidelines. Not a bad place to be for a while. Do you want to see this market fush through certain levels to feel it has cleaned out or do you think weve already broken through those levels . I think weve done some damage today and yesterday. I think weve broken a lot of nearterm support numbers that, to me, look a little disconcerting. Its not such a bad thing, maria, to go to the side lines once in a while. I had gone two weeks ago. I came back n. Im wrong for a percentandahalf, im out. Let the mrkt go down, let labor day come. Let everybody come back from the beach. Lets see what kind of buying we have the first week in september. I think that thats probably the best place to be. I admit when im wrong. I have been at this a long time t. Game is, there is nothing wrong with being wrong, there is a lot wrong with remaining wrong. When the mark moves against me two days like this it tells me im wrong. Bob dahl is on the telephone, what is your take on this market selloff . Look, i dont think the bull market is over. Short term, we are taking a breather. We have a lot of game to digest t. P. E. , multiple improve him phase, go imp the fed support seems to have peeked. I think the next move up requires stronger revenues in Earnings Growth. I believe we will get, not tomorrow, the next day. Were in a bit of a pause. Bob, it looks to me like earnings actually have desell rated. If you look back from the Fourth Quarter of 2012 to where we are right now, we cert