Were off the lows of the day but its the worst day of the market this year. Thanks for watching street signs. Closing bell starting in about two minutes. Or two seconds rather. Im not good at telling time. But ill be back tomorrow. And were into the final stretch. Welcome to the closing bell. Im maria bartiromo. Giving back much of the gains we saw on friday. And look whos back . I dont believe you hit 14,000 last week. This market doesnt look like 14,000 to me. Im bill griffith. What happened . The power goes out on the super bowl and on top of this super rally. Were on top of the first triple digit decline possibility of the year. Its something to think about in the final year here. Beyonce was that hot the lights went out. Whats behind todays moves lower are the earnings and the fundamentals behind this economy actually do not justify this incredible run for this market. Were going to hear both sides coming up on the closing bell. We will. Plus a realtime check on cloroxs company earnings. Theyre up br thnt and sitting at its alltime high right now. Lets check the markets for you. Dow down about 99 points. Off of the lows which were about 2 30 or so. 30 minutes ago on the industrial average. Now back to 13,910. Check the nasdaq composite where its down about 37 points. And the s p 500 looks like this with a decline on the session of just about 13 points. Okay. So in todays selloff were backing away from the alltime high on the dow set back in 07. We have danny hughes back with us from devine capital. Michael holland as i live and breathe. Blast from the past. Mike shay from direct access on the floor with us. And our own Rick Santelli is in chicago. Michael, im starting with you. You dont have sweaty palms with this selloff today . No. And i was saying with michael shay before we got down here, is i have friends who are short the market or out of the market. This was not a good close for them. All this deterioration happened in the first hour. This is the most important hour of the trade. Yes, it is. You can see where we are at 4 00. Thats when the smart money comes in. A lot of traders say that. Mike shay, do you agree with that . This is the smart money hour . To expand what michael said. When we were talking about this one, what i told him was the wall of worry has actually two sides. So for those people who are short, theyre getting knocked around. And for all that quote, unquote smart money, the real smart money got in this market 12 months ago, got in the market 10 months ago, 8 months ago. If there is smart money on the sidelines, if that waits too long, that ends up being chasing money. And everybody thats in the market loves some good chasing money. I feel this is the victory. Its 100 points. We are up so much. Im looking at the stat from the statistician team here. Typically weak for the dow as the market has declined 60 of the time in the first couple of weeks of february. Danny, is this just lets take a breather here after the runup weve seen . I challenge this is a selloff. Its a hundred point in the face of the 900point increase over the past few months. What im concerned about i think were all concerned about what we talked about earlier, mike. Is that the market, the prices have risen so dramatically if the face of a decline in liquid till. Theres no volume out there. Portfolio managers are taking shorter bets. Thats a big concern for the market. You have to take what the market is giving you. One of the real debates we have here is wlorpt the little guy is getting back in the market. Individual investors have not participated directly in this market. For the past few years, they havent. I see them coming in and getting more excited. Things are on the increase. Let me participate in this. Let me get back in the market. How do you want to do it . How are you allocating capital . As bill was dani was saying people getting in six months ago you were saying thats me. I never get out. But i own stocks and i used to own bonds. Ill be interested to hear ricks comments. I dont own bonds today. And the but id like to go to bills previous comment. Which stocks . How are you allocating . The big ones around the world. The best franchise names. The best brands are the cheapest by far. In china things that used to be the market over there that was 30 times earned, theyre now ten. Were the same way. Ibm, google, go on. The list is incredible. What about apple . Thats a private joke. Let me go to Rick Santelli. While i was gone last week you hit 2 on that ten year. Is that the ceiling or could we go higher from here, do you think . The conventional wisdom is that treasuries are toast and theyre going to be selling off pushing yields higher. The fact of the matter is fives, tens, thirties net change on the year is 12 basis points for fives. 23 basis points for 30s. And since were still close to historic low yields, the moves are large. If you take them out of that contest text its not that big. I will consider this. If you look at the japanese stock market, its up about 8 . But their currencys lost 6 against the greenback. If you didnt neutralize your exchange, youre only up a few percent. It pops out in other places. You got to hedge the yen out of the expert story in japan for sure. Dani, same question for you. How do you want to allocate capital here knowing the runup weve had . We like at t. I own it. Ive owned it for a long time. Another is old republic, ori. Very old Insurance Company thats done well in this market. Pays a very nice yield. I also own that one. Again, the storys about yield. Everybodys been pushed to this market because of the excess credit the fed is pushing into the economy. Look for yields. Mike shay, where do you see money going on the floor these days . Whats interesting is that its not just equities. Last month we saw meaningful money going into equity funds. Just last week we got data that money was going into equity funds. Its going into bonds too. The only area was government bonds. Everything else money is going into it. Which makes me ask is this the money thats been on the sidelines . For all these years, is this the money . You think money is coming from the sidelines as opposed to coming out of bond funds and into stocks. You dont believe we have seen enough traction on that trade . I would like to see a couple more months of data. Right now normally you get money going from somewhere to somewhere else. And its easy to track. This time we havent had such an easy track. All right. Thank you, folks. Good to see you all for joining us today. Michael, come back when you can stay longer some time. See you later. Come back soon. Thanks. In other news, federal and state prosecutors are reportedly planning to sue standard poors. Mary thompson has the latest details. The Justice Department could sue the Rating Agency as early as tomorrow. It follows a yearlong investigation. The first legal action taken against a Rating Agency against the government involves how it rated 30 cdos also seeks a ten figure settlement and admission of wrong doing by s p. The threatened lawsuit is unjustified, says s p saying the cdos in question were similarly rated by other agencies. It did cut for 400 mortgage results securities. The unit at mcgraw hill is threatening to sue it for not predicting the full threat of the housing downturn. Rating agencies singled out after the crisis for giving high Credit Ratings to mortgages before the housing bubble burst. These were sold to investors essentially infecting the system. Standard poors plans to vigorously defend itself. Its not clear if s p will be the only target of the doj. Bill, back to you. All right. Thank you very much. We are heading towards the close. About 52 minutes left in the trading session in the dow. The question is, could this be the first triple digit decline for the dow in this new year . Down 99 right now. And at the same Time Congress is back in session. Lovely. We are a month away from the temporarily delayed automatic spending cuts. Unless we get a deal on the table. Coming up weve got representatives from the aisle to see what is possible. Today selloff notwithstanding, dont feel bad if youve missed the boat on this rally. Wait until you hear about the ceos who unloaded shares of their own companys stock before the runup. And after the bell, dont miss yums earning question lease. Theyre a flier from the hit super bowl commercial last night. But the stock is taking a hit. Analysis youll only see here after the close. With fidelitys new options platform, weve completely integrated every step of the process, making it easier to try filters and strategies. To get a list of equity options. Evaluate them with our p l calculator. And execute faster with our more intuitive trade ticket. Im greg stevens and i helped create fidelitys options platform. Its one more innovative reason serious investors are choosing fidelity. Now get 200 free trades when you open an account. Begins with back pain and a choice. Take advil, and maybe have to take up to four in a day. Or take aleve, which can relieve pain all day with just two pills. Good eye. We come off the lows of the day. If youre just joining us, the dows been down triple digits virtually the entire day. The question is will we be down triple digits on the close . If we are, it would be the first time this year the dow has suffered a triple digit decline. Of course this comes, maria, after the supposedly you hit 14,000 onz friday. I still dont believe that. Yes, we did, bill. Friday was the day. The house of representatives back in session today. Speaker john boehner taking to the floor about an hour ago blasting president obama for not having a budget yet or a plan to avoid scheduled spending cuts. Eamon javers in washington with the story. Hi, maria. Were lurching towards another fiscal showdown. March 1st, thats the new date now for the socalled sequester federal spending cuts that would be automatic and across the board. A lot of jockeying in washington yesterday and today. The preamble starts today with john boehner who took to the floor to criticize the president for being late with his budget proposal. This was to be the day the president submitted his budget to congress. But its not coming. Its going to be late. And some reports say that it could be as long as a month late. I think thats too bad. Our economy could use some president ial leadership right now. And maria, yesterday democrats offered up some thoughts of their own including the president himself in a super bowl interview suggesting the carried loophole is after a package of new revenues based on closing loopholes. Carried interest, one thing thats very much on the table here. And obviously that effects a lot of hedge funds and financial firms. Thanks very much. Those automatic spending cuts could mean we have more days like today in the stock market. Will there be a deal to avoid it . Lets talk about it. Joining us, two representatives back at work again. Brad sherman, democrat from california, believes the automatic spending cuts should be suspended. The representative republican says the democrats should come up with a an alternative. Representative harris, what about that . Representative sherman is among those who feels the sequesters would cost too many jobs. What do you say . Well, the House Republicans have twice put forth a plan that could delay the sequester offsetting it with other cuts in the budget. Were still waiting for the president. By law he was to submit a budget by today. How can we Work Together to solve the nations economic problems if we dont see a budget from the president or the senate . What about that, representative sherman . Are you working on an alternative . What can you tell us . Certainly we have alternatives. Whether the alternatives are likely to get a serious hearing with the House Republicans, i dont know. Congress is over four months late in passing the Appropriations Bills for the fiscal year that began october 1st. The president will probably be a month late in providing a budget. We need to have nonideological budget approaches. The Business Cycle puts us at different positions at different times. We ought to have different policies in the Business Cycle. If we get tied up in ideology, people will be for the same policies. That works for ideology, not economics. I know youre not the chief spokesman for the president , but why is the budget late . Especially now. We havent had a passed budget for a few years out of washington. Wouldnt this be the time to show president ial leadership and step up with a budget on time this time around . Boehner wants the leadership, but he doesnt want to be a follower. So the fact is that the sequester problem has much of washington tied up in knots. We arent so interested in a budget for 2014 in dealing with 2013. Weve got to do first things first. Congress is over four months behind. Its not surprising the administration would want to focus on the decisions we havent made yet. But whats the answer to no budget in four years . Are you asking me . Yeah. I would say that the senate rules are such that it is very difficult to get 50 senators to vote on anything but isnt that everyones jobs . Im not a senator. And so, no thats not my job. But the senate rules and they changed them just a little bit. And procedures and practices over there are such that it is very difficult so whos accountable for that . Is anyone taking responsibility for us not having a budget in four years . For decades the senate has been able to pass a budget. Now under the leadership of harry reid and president obama, its not able to pass a budget. Its not a problem with the senate. Its not a problem getting 51 senators. Theyve done it for decades. The problem is that no one in washington on the other side of the aisle wants to take leadership for how to get us out of the fiscal mess were in. And not this years fiscal mess. The mess that extends out 20, 30, 40 years. The president s budget last year never, ever, ever balanced. You cant do that. Those numbers dont add up. All right. Lets bet back to this sequester here. It comes at a time when we just learned that Fourth Quarter gdp was horrible compared to what we saw in the third quarter. The stock market seems to feel like things are getting back to normal, the economys on the mend. Is this the time to allow these spending cuts to take effect automatically that could take out a number the New York Times says it could cost a million jobs in the economy right now. Isnt this the time to think about an alternative of some kind . Absolutely. The senate has not taken it up. The house is the majority the alternative would cost the same million jobs. Whether you gut defense or whether you gut domestic programs. Its the same reduction in gdp, the same reduction in expenditures. You can argue about what the federal government should be spending money on, but if you dramatically reduce expenditures at a time of national recession, and i think were still in a recession, then youre going to see a decline in jobs. It is not an answer to say the house has passed something that they know is dead on arrival in the senate. Maybe fa doesnt matter right now. Is the debt not a priority right now . Is growth more of a priority than reining in the debt . I dont think theyre mutually exclusive. Government growth is not going to get us out of this mess. Private sector growth is. Right now government growth is a drag on the private sector. Every day the president threatens to raise a tax or another. As long as the threat of new taxes, huge regulations from the epa hang over the private sector, were not going to get the growth we need. You know one of the biggest drags on Fourth Quarter gdp that report showed was the reining in of defense spending as we got out of afghanistan and retracted some troops. That is what was a huge contributor to that decline in growth in the Fourth Quarter. Now are we doing this all over again with the sequestration here . Sequestration is already effecting government expenditures as agencies try to guess what position theyll be in. Of course theyre being conservative. The deficit problem is the problem for later in this decade. The jobs problem is the problem today. And this talk of a contracti contractionary fiscal position. It is hurting the economy. He wantive harris . In the end, weve got to get our deficit under control while we grow the private sector economy. We cant do it through new taxation. You cant tax your way out of this mess. Thats the problem. The president has decided thats the approach hes going to take. The republicans have a different approach. We believe we have to rein in entitlement spending, the budgets up until now. Again across the aisle and on the other side, theyre unwilling to handle. Well leave it there. Thank you. Let you both get back to work. Thanks for joining us. Thank you. Appreciate your time. Thanks very much. Isnt it nice to know in two weeks you havent missed anything . This sounds familiar. 40 minutes before the closing bell sounds. Dow down 103 points. Google getting downgraded after a record high on friday when we allegedly hit 14,000. Why did that happen . And are you better off buying shares of rival yahoo who got an upgrade from a different firm . We got those trades coming up. Then at 75 million, spiderman turn off the dark is the most expensive broadway show ever. And dont miss the premiere of my new documentary tonight, betting big on broadway. It airs tonight at 9 00 p. M. Eastern and pacific. You get to see maria do some kicking. Exactly. [ male announcer ] ive seen incredible things. Otherworldly things. But there are some things ive never seen before. This ge jet engine can understand 5,000 data samples per second. Which is good for business. Because planes use less fuel, spend less time on the ground and more time in the air. Suddenly, faraway places dont seem so. Far away. All stations come over to mithis is for real this time. Step seven point two one two. Verify and lock. Command is locked. Five seconds. Three, two, one. Standing by for capture. The most Innovative Software on the planet. Dragon is captured. Is connecting todays leading companies to places beyond it. Siemens. Answers. Who wins in worldwide grosses . The answer, broadways the line king with over 5 billion. Betting big on broadway airs tonight at 9 00 p. M. Eastern here on cnbc. Meanwhile, Technology Stocks really leading todays selloff. There is one name in the group thats bucking the trend. Lets get to seema mody with the name. That name is blackberry. Formally known as research in motion. Trading here under the Ticker Symbol today bbry