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Transcripts For CNBC Mad Money 20130816

Everything went wrong that could go wrong for stocks, which is why the dow plunged 225 points. S p plummeted 1. 43 . The nasdaq nosedived. To understand what triggers a selloff of this magnitude, you have to recognize that this market has multiple inputs and at times, these inputs flash bright red. Today was, indeed, a bright red day. Lets go through the information that the market uses to determine prices on any given day, because i want you on the same page as me, understanding this stuff. First is what we call the macro, thats broad sets of Economic Data that trigger reaction of the stockmarket and the much bigger bond market. On thursday at 8 30, we get those jobless claims. They were the lowest in six years. Not so fast. Its good for the economy. But its not necessarily good for the stock market. What happens when we get really good macro news like these jobless rates . Immediately, Interest Rates go higher. You got to pay more to borrow money when things are improving. Interest r

Transcripts For CNBC Mad Money 20130815

Wrong that could go wrong for stocks, which is why the dow plunged 225 points. S p plummeted to 1. 43 . The nasdaq knowsdived. To understand what triggers a selloff of this magnitude, you have to recognize this market has multiple enputs and at times, these inputs flash bright red. Today was, indeed, a bright red day. Lets go through the information that the market uses to determine prices on any given day. Because i want you on the same page as me understanding this stuff. First is what we call the macro, thats broad sense of Economic Data that trig ter reaction of the stockmarket and the much bonger bond market. On thursday at 8 30, we get those jobless claims. They were the lowest in six years. Not so fast. Its good for the economy. But its not necessarily good for the stock. What happens when we get good macro news like these jobless rates . Immediately, Interest Rates go higher. You have to borrow more money when things are improving . Interest rates reached a high t. Key governme

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