Monthly decline since may of last year. Wanted to go into this evening long on the markets . Yeah. And yet despite that, we still havent seen really big volume. People waiting for that. Hasnt emerged. The Dow Jones Industrial ended for a low on the day. A saying on the floor, go broke on light volume, too. The dow fully drifting south. Market internaling, point out something. Volume moderate. No stampede to sell like yesterday. A general buyers strike. Put call to ratio, one, people arent in particular trying to get protection, holding on to longs. Vix at a sixweek high. Higher in june. Look at the sectors hardhit today. Emerging markets. Take a look. Down 9 in indonesia. Trading here in the United States. These markets are not open. Making guesses about where they might open in the next day here. Turkey and india all to the down side. Airlines was among the worst performers thp an easy one when you have oil near a 18month high, you get declines. Noticeable and these were down, these percentages, pretty much throughout the whole day. Steady performers on the down side. A little flattening of the yield curve when you get Interest Rates moving to the down side. No surprise. Banks down 2 , 3 even 4 . An interesting story. Gold may have rallied and held on, but the gold stocks started to the up side and went straight down throughout the whole day. All of the big gold names and endened now 4 5 . Maybe they like gold. They certainly dont believe gold stocks is the way to play in amid the current global turn moil. An update on the nasdaq nyse tiff over what happened with the sip and arca on thursday. A lot of recushion and finger pointing going on. I spoke with nyse officials, nasdaq ish tos in the last few days. The question, on the timeline, whos to blame . We know this. A little bit of a problem with the nyse arca matching engines trier to ty eprior with the sip down with the arca. Timeline. 10 57, declared self help, accept 171 09, everything okay. Revoked the selfhelp. What happened in the time period all of a sudden causes this prop. Everybody agrees on something used up all the resources on the sip. Something caused the sip to shut down. Nyse, do not blame us. Nasdaq this partly a problem with arca trying to connect to our system. A little bit of a fight going on. Bottom line, the sec call add meet are for september 12th. Youll see, bill, a lot of pressure on all of the exchanges. On the nyse and nasdaq to upgrade their ability to test systems to more modern standards. For uniform standards right now theres just a best practices standard that goes on, and i think youre going to see pressure. Heres the problem. These exchanges are in terrible shape now. Theyre cutting staff. Theyre not adding staff. The sec is going to put a lot of pressure on these exchanges to improve technology, to improve technology testing, at a time when theyre laying off people. I think thats going to cause a lot of pressure on them, and even more pressure towards consolidation. Its an ongoing story. More to say in the next couple days. Back to you. Clarify, bob, for those who dont know. Arca, new york stock exchanges all Electronics System. Sip system, reporting system of the nasdaq, not communicating trades to price reporter and theyre both saying its your fault, no, its your fault. Thats what Mary Jo White at the sec has to solve and figure out. Right. Good way to put that. When the problem was the matching engines went down, a little piece went down at arca, Electronics System here. Tried to connect. When it conseconnect whenconsen up, after that, problems. The question, exactly whos at fault . Joining us, eric from russell investments. Michael from yahoo finance, and tim from a Management Group and Rick Santelli back as well. Thanks for joining us. Tim, i want to start with you, because if this selloff has a lot to do with the situation in syria, thats one that frankly doesnt look like its going to have an easy or quick resolutions. No. Thats right, kelly. This is a big unknown at this point. This is probably the first reaction as far as the market based on the rumor, but if we, in fact, strike and attack syria, i think were going to see more of this to come. Obviously, dpee l obviously, depending what the nature of that might be. Continuing military conflicts, potentially, in the middle east. And part of why weve been trying to hang in around commodity exposure. Rick santelli, the markets today. Are they trading simply on syria . Are they paying attention at all to fundamentals . The fears of taper talk . All of the things that have been spooking up to this point . What do you make of the markets message today . Its a combination. If we didnt have very weak data points along with the geopolitical forces, i dont think it would have been such a dynamic duo, lower Global Equities and high quality sovereign rates. To give you an idea, that fixed mcside is still running at a risk, a rate higher premium. The last time the dow was at this level was the 25th of june. Where were tenyear note rates on the 25th of june . At 260. 12 basis points lower. The five year was at 149. Three basis points lower. So it gives you a couple of issues to learn from. That the curve has a lot of issues with steepening coming out, still stuck in there a bit, and that the Interest Rate complex probably will still give you more upside to higher rates when they reverses or we get strong data than the opposite when we have geopolitical issues and we did. And picking up on that, eric, do you guys take a moment and like now saying, perhaps maybe we do see the tenyear rally back to 2. 6 to rotate back into bonds . Well, i think theyre trying to time the Interest Rate market now as a hazardous thing at best. A neutral position makes sense. Own the amount of bonds that you want to own over your long Term Investment horizon. Thats 40 for a lot of investors. Own 40 . Because we do think that equities are going to rally and all things equal, were actually poised to buy in the dips in these mashgtsd and view today as a dip. Yes. Thats for sure. And michael, in some ways you feel this is a, an excuse for traders to sell here, to use these geopolitical concerns to achieve that 10 correction weve been waiting for all this time . Yeah. Another on the pile of excuses. I dont know if its gets as deep at 10 , but the dow stocks at sale all month. The dow badly yourt performing the nasdaq and to some degree the s p masked by the strength and coal Growth Stocks in the last several weekss to me, one more excuse aside from august, september, seasonal weakness. Obviously, the fed indecision on the horizon in terms of policy and new chairman, and so i do think that this is basically another excuse for i am focussed on the Investor Sentiment response in the past few pullbacks of 35 , youve had people rush to a fearful stance. Pretty quickly. I think youre seeing inklings of that. Not a fat pitch just yet but this relief rally in the yield can complex makes a lot of sense in this contest. Mikes right. Syria has cost the dow in the last day and a half 250 points, but the dow is down 4. 5 . So far this month. Its really been almost straight down. And i make a lot of the fact that the volume is very much on the light side and true, yesterday the lightest volume day of the year for a full day, but theres a lot underneath all of that light volume moving south. A lot of technical damage thats slowly being done. Yesterday we breached the 50day moving average in the s p and these kinds of Technical Levels do start to matter at this point. Im not trying to poo, poo the light damage. Ip see the damage. What do you mick of that, people are pointing out the trend showing a reading of almost 2. 7. In other words, a lot of selling pressure in the market. Seeing voluming pick up on the declinance and how much further in that case could we have to go here . Well, weve noticed and certainly are concerned about that sentiment weakening that weve been observing collectively over the last month or so. We see, though, fundamentals from an equity market point of view as being intact. We think valuations are reasonable, very much, more now, that with no inflation on the horizon were actually looking for equity gains over the foreseeable future, but this is probably going to be a continuation of a consolidation period over the next month or so. Yeah, boy. I havent seen that trend number two, you just mentioned that, kelly. Big one. Same tweet you did. 2. 67. A lot of selling pressure, up and down volume. And want a day to report earnings . S from tivo, we have the numbers. How do they look . Tivos revenue in line with expectations. 71 million excluding litigation issues. Look at earnings per share, came in at a loss of 9 cents per share, a penny better than wall street expected. The year ago quarter the loss, 23 cents per share. That is improvement. Now, the stock is moving, or had been moving marginally higher after hour. Appears to be pop downing. Popping around. Looking at the guidance for the third quartercal year, upcoming quarter. Everybody is the in technology, the range of 80 million to 82 million appearing to be heavier than wall street expected. Some comparison questions. It seems to be stronger than expected and the companys net income is expected to be in the range, the Company Projects net income in the range of 6 million to 8. Wall street expected a loss in the upcoming quarter. Also a stronger than expected. Sue and bill and kelly, back to you. Thank you, julia. And investors trying to figure out what to make of that one. Keep an eye on teivtivo. Just launched that romeo. I want to try that. Romeo, romeo, wherefore art thou . Exactly. Much more ahead on this jam back packed edition of the closing bell. And what impact syria can have on the Financial Markets . It could get worse. Keep it right here for the affect of your investment on that front. And syria, worry was not bad enough. Another battle looming in washington. Of course, over the debt ceiling, as treasury secretary jack lew, should be very concerned. And with millions of college kids headed back to school this week, a panel of pros with savvy ideas how to pay the skyhigh tuition bills. Dont miss the second installment of our weeklong Series School days the changing face of college. Youre watching cnbc, first in business worldwide. Ron im never alone with scottrade. I can always call or stop by my local office. Theyre nearby and ready to help. So when i have questions, i can talk to someone who knows exactly how i trade. Because i dont trade like everybody. I trade like me. Thats why im with scottrade. Announcer scottrade proud to be ranked best overall client experience. The situation in syria is taking its toll. Look at the numbers, oil surging nearly 3 here in the united on concern, the u. S. May be inches closer to a potential military strike on syria, perhaps as early as thursday. Kelly . Bill, peter schiff is saying this is bad news for an already sluggish u. S. Economy while david haile of david haile Global Economics doesnt see an immediate economic threat. Peter, first to you. Never super optimistic butt tay seaying this makes things worse . Depends on your perspective. I own a lot of oil. I thought oil prices were going up anyway. Clearly the catalyst for a 3 move today is syria. If it wasnt syria, it would have been Something Else. Oil prices are going a lot higher than 109 a barrel and it is a big negative for the u. S. Economy and whats happening right now in syria is just one more weight on a weakened economy. We cant bear the weight we have let alone additional weights placed upon us. David, why dont you think Higher Oil Prices would hurt our economy right now . If we had a large oil price a negative. Bolster inflation, depress real income. A problem. Whats unclear is why the syrian conflict should lead to Higher Oil Pricess syria itself two years ago produced only a couple hundred thousand barrels of oil. Its not a factor. The real danger posed by syria is, it lies in a region where a lot of oil is produced. Its a conflict in some ways with iran and saudi arabia. If they had a correct conflict, that would mean much Higher Oil Prices. You said, concern that it got much higher. How much higher before you get sweaty palms about the economy . S 20 25 a barrel. 20 a barrel. Going higher . Move to 110 to 125 a barrel, relatively soon. Maybe in the next few months. Over the next few years oil will take out the 150 barrel high we put in prior to the 2008 financial crisis and work closer to 200 a barrel. Not because of syria. Its because of ben bernanke and whoever his successor may be, because . Dma japan, all the Central Banks around the World Printing too much money, quantitative easing. Inflation is causing oil prices to rise, not the other way around. I think when the fed gets a good look at whats happening with oil prices, buy stock prices going down, real estate prices turning south. Corporate earnings going down, the employment picture will darken. Another reason for the fed not to taper, aultimately might sav the market from a bigger decline, all the new inflaktion and the tapering talk is put back to sometime next year and come up with another excuse why they cant taper. Whatever, because of the impact by the cuts that Higher Oil Prices have, effectively for the middle and lower classes of americans who dont necessarily have Stock Investments to benefit, theyll see a standard of living shock. I want to ask, if what youre saying about Oil Prices Headed to 250 a barrel is right, why, if anything, does the market keep telling us it sees prices lower the further out we look into the contracts . First of all, i said up to 200. Maybe go to 250. I dont know. I thought 150 to 200. Yes, americans are going to suffer a declining standard of listening pt the consequence of quantitative easing. While im opposing it. The fed is destroying the starnt of living of middle class america, destroying their wages and yes, prices go up. Look at Oil Companies. I know a lot of oil stocks and Oil Companies arent making a lot of money. Look at oil stock s going up. 100 a barrel is not high enough for the oil company toes economically replace depleting reserves. Oil prices are much too cheap. Inflation driving up the cost of exploring for oil. Oil needs to be 150 to 200 a barrel for the Oil Companies to make decent profits. Just saying, why is it, if youre saying oil is going to 200, do the four contract reflect an Oil Price Lower than where we are said to . The consensus is wrong. Wrong about a lot of things. The consensus is wrong about gold. About the bond market. Remember what people thought about internet stocks in 1999 . Or about real estate in 2007 . Whmp you have a consensus, its generally wrong. So im not looking at what most people think is going to happen to the price of oil. Im looking at what i believe is going to happen to the price of oil and i think im a better barometer than just the consensus opinion, historically its proven to the wrong far more often than its right. Very good. Gentlemen, good to see you. My best today. And not the being worry on wall street, syria. And jack lew, in a cnbc exclusive this morning. The president s been very clear. We are not going to be negotiating over the debt limit. If were heading for another showdown in washington over the debt ceiling, is that the real threat of this market . Well look at that coming up next. And plenty of people say it is. Also ahead, call it the old apple tree as the tech giants prepares to launch a tradein program at its stores. We ask, whether you get more money from private buyers . Pros and cons with this move. Stay with us. [ marco ] im a student at Devry University. And this is my home team. This is my large lecture hall. This is my professor. And also my coach. This is my booster club. This is the guy whos graduating ready for a great career in technology. [ male announcer ] in 2012, 90 of Devry University grads actively seeking employment had careers in their field in 6 months. Join the 90 . Learn how at devry. Edu. Call it deja vu. Nice exclusive. Looks like the white house is digging in for another ugly battle this fall . They are. A convergence of several battles. The government funding, which runs out at the end of september. Has to be suspended. The debt limit, and jack lew told me, yes, well negotiate over spending levels, whether to maintain the sequester but not negotiate over the debt limit because of what happened in 2011. Take a listen. We are not going to be negotiating over the debt limit. Congress has already authorized funding, committed us to make expenditures. Were in a place, the only were is, will we pay the bills that the United States incurred. It is, the only way to do that is for congress to act and act quickly. We dont need another selfinflicted wound, another crisis at the last minute. Congress should come back, and they should act. I asked jack lew if he was 100 confident that congress and the administration would avoid a debt crisis like 2011, and he said i know the leaders want to avoid it. Nobody wants to repeat that, but i dont yet see a plan to avoid it. Bill . And john, just curious. Sorry, john, i want to ask you quick about Larry Summers as well. Its haunted people. Still focused on. Youre hearing from the white house that his nomination could be in weeks . Well, kelly, heres the difference between people who are actually in the room with the president , as he makes that decision, and wellinformed other people who are not in that same room. Those people who are not in the room speculate like my source yesterday, who said, yes, i expect Larry Summers within a few weeks. Asked jack lew about i