Slightly positive territory for some of the averages right now. The dow though is down ten points. About five off the s p 500. 1750 is the level. The nasdaq sitting just above the 4,000 mark off 20. Speaking of moment of truth, twitter with its first Quarterly Results since going public due to hit within the hour. Investors will get their first real look at the numbers. Well see if they justify a stock price thats now up more than 150 since that initial Public Offering here that we remember so well. We will get you those full results right after the bell. And were not finished with earnings either. Disney also reports. A big bellwether for the economy and bob iger will be joining us here on the closing bell as soon as the numbers are released. Twitter and disney, two very Important Companies reporting in this jittery market right now. And lets remind people where we sit. After a series of losses to start out the year and after the worst start to a february in some time, we look a little bit better as we move through the week now. The market at this point you have the s p off only about 5 points, the nasdaq 10, the Dow Jones Industrial average as well off about 5. The question becomes whether that turns back into a rally as we head towards the close. Lets talk about that in the exchange today. We have barbara, Keith Fitzgerald from Money Map Press back with us. Joe bell from schaefers investment research. Peter anderson from Congress Asset management and our own Rick Santelli at the cme in chicago. Keith, you have done the math here. You point out this is the 19th time the markets have broken down by 5 or more since 2009. Significant . Are you expecting more . What do you think is happening right now . This is a classic correction. Its not time to bailing out. Its time to wait and see. The bulls and bears are duking it out. This 1750ish level is the dividing line. If we can hold it through the rest of the week, im very encouraged. I like the buying. If we go south of here and fail, i think the next stop is down considerably. Would you want to see a 10 correction . There are those who feel we need Something Like this . I think fundamentally, philosophically, were long overdue for that. I dont like losing trillions of dollars off the top like anybody else does. I want to see this thing come back. I want to see the buying continue, and id love to have it. And, peter, in a market thats still so heavily influenced by the fed, we have a couple competing narratives out there. We have plosser talking about potentially ending quantitative easing by the end of the year while lockhart is saying a sear yuz adverse change so prompt a change in the taper. What do you make of it . Well, i think its going to be a year of competing opinions absolutely. I mean, we saw in the Economic Data today, for instance, competing opinions between manufacturing and the services. So it doesnt surprise me were going to have conflicting opinions all along this way, and on top of it, you know, talking up stocks right now is a bit like trying to inflate a lead balloon. Still, if you look at individual holdings, and thats what i do all day, i hate to get began lar granular right now please get granular. She loves granular. Fine. We just bought a stock called super value. Its in the boring supermarket industry but its trading at half the pe of the industry right now, and, of course, it has some story. It has some hair on it. But its deleveraging. A private equity firm has come in and taken some major positions there. So its things like that, kelly, that while all this noise is going on in the background and i can almost hear mick jagger singing here comes your 19th nervous breakdown, but even with all that happening, you can still find some individual names, and when you look at it at that level of grahn lairity, i think the economy is still strong and there are stocks out there to buy and you will get a nice return throughout the rest of the year. Only on the closing bell do you get Elizabeth Barrett browning and the Rolling Stones in one tenminute segment. Barbara morrison, you and the rest of the group are classic stock pickers. Do you like this comeback in the market . Does it make it easier to pick a stock, or do you want to stand back and let this market settle out before you start buying some more . Well, i think there are always things that are of value in the market. You know, the overall market is not does not have a lot of value right now. It may be under 17 times earnings, and i think as we exited last year, we thought we were starting in on a period of stronger growth rather than this last couple of years of just 2 . And i think there was optimism over that. Now i think what we have seen with the ism reports and employment, i think it still looks a little mixed. I think you always want to choose your spots and buy something you think can have higher cash and higher earnings maybe a year or two years from now and get a higher multiple on that. But youre being selective in that regard then i guess. Yes. Yes. I think we always are. Thats right. Were always looking i think we think you make money at the price at which you buy. So were always looking to buy something at a good price. Got that list out. Rick santelli, if people want to be encouraged, there are a couple factors. You can point to huge volume in the etf that goes against the vix. In other words, expecting volatility to decrease in the coming period. You could look at the tenyear and the fact that yields have risen a little bit there. You know, i think volatility is interesting, and theres, oh, so many forms of volatility. We have price volatility, option volatility, implied, historic, but in the end the volatility that i think people are most worried about, investors in particular, is the type of volatility associated with the downside of equities like the vix. So that doesnt scare me. I think downside volatility is here to stay. You know, if you buy Life Insurance and you dont die, you dont call up your Life Insurance carrier and complain. I think traders when they see the markets trade to the downside are going to reach for vols. I think todays report, both ism nonmanufacturing and adp, give us valuable information, and that is there isnt a linear move in the data that measures the u. S. Economy thats looking straight up. It still looks like it could be fits and starts and we will need a couple more numbers on the employment side to get through the weather issues as big or small as they may be to convince analysts what direction the market is going. The problem is we continue to look at 2014 like its 2013. By the time we get through another two months when we know some more on the economy in a concrete fashion, if it continues the way it is, theres going to be many that are going to have their average price a lot higher than it is today. And, joe bell, you know, as we do look back at 2013, we were talking so much about the amount of cash sitting on the sidelines and we saw it as a potential bullish sign. That was money waiting to get in the market. Were not talking about that right now with this 5. 5 pullback but you still feel that is a bullish indicator we need to keep an eye on, yes . Bigger picture i definitely do. You talk about the fact that its been actually since the beginning of october since weve had a meaningful pullback, so it might have made sense for the markets to take a bit of a breather here. I think a lot of people are getting scared by this 6 pullback. In the short term im encouraged by the fact that the 1740 area which coincides with the november lows is holding but after a lot of volatility to the downside, it seems the bulls and bears right here, we would like to see this area hold. One thing thats interesting to us as well is we dont think theres a lot of High Expectations for this market right now, especially in the short term. It seems like a lot of people are perhaps saying how large is this correction going to be rather than talking about jumping right back into that market. We think that low expectation and really that fear, thats sort of what will sort of come off the sidelines at some point if we can get some strength here and some confirmation off the support area. Barbara, im just curious when youre looking name by name if anyone in the social media space appeals. We have a bunch of earnings, twitter, yelp, pandora, linkedin tomorrow, all of which people wave their hands and say theyre overvalued thats right. How do you view these names . I think you really want to have something that you think will be of good value a year, two years fro now, so there have been a lot of stocks that have been darlings and had a lot of momentum, but you want to buy something that you think really has value in it. Something like a microsoft fit the bill . Microsoft is i think microsoft really does not have a culture of innovation. I think thats tough for a technology company. I dont know how they can all of a sudden be all about the cloud and reinvent themselves. I think the competition is very high. I think they should buy another company to try to get their culture and almost reverse merge into it but i find it difficult to find value there. Any other names certainly apple. Apple is a tremendous buy here. Apple is trading at 11 times this years earnings, 10 times next years earnings. A tremendous amount of cash on the balance sheet. Who is going to win, carl icahn or cal percent. I think they both have it a little bit right. The company has done a good job of staying true to itself but i think the cash should go to the shareholders who own it. Thank you all for joining us today. Appreciate it very much. We have a lot to get to here over this next hour as we get ready for some very big earnings as you mentioned kelly. As we head to the close, 50 minutes left in the trading session here. A lot of volatility on the morning session. Not a lot this afternoon. The dow now up 7 points. Its been flirting with that unchanged level for a couple hours now. Well watch it closely. We have Standard Poors downgrading puerto ricos debt to junk status. Now worry that is it could have negative repercussions throughout your portfolio. As you have heard, twitter set to deliver its First Quarter results as a publicly traded company, but should you buy or sell this stock ahead of those numbers . A good oldfashioned stock brawl on twitter coming up. And dow component disney also on the earnings calendar after the bell and chairman and ceo bob iger will break down the results in a first on cnbc interview moments after theyre released. Thats all coming up. Youre watching cnbc, first in business worldwide. And it feels like your lifeate revolves around your symptoms, ask your gastroenterologist about humira adalimumab. Humira has been proven to work for adults who have tried other medications but still experience the symptoms of moderate to severe crohns disease. In clinical studies, the majority of patients on humira saw significant symptom relief, and many achieved remission. Humira can lower your ability to fight infections, including tuberculosis. 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Superior service, best selection, lowest price, guaranteed. Sleep train your ticket to a better nights sleep welcome back. Breaking news right now. Some fed speak, steve liesman. Who is talking . Atlanta fed president Dennis Lockhart saying that the 10 billion fed taper, speaking by the way at the rotary club of birmingham, alabama, the 10 million taper is the default mode for the federal reserve. Other fed guys have sort ever suggested this. He may be the first one to come right out and say it. Its been really what the market that is thought. He said the stock market may have gotten ahead of itself and hes not surprised by the selloff but he doubts, however, it was in a bubble. Hes one of several people out there the past several days, fed speakers, who have defended the schedule for the tapering given some of the weaker Economic News and whats been happening in emerging markets kind of suggesting despite these things, the fed is on track and it being the default mode and earlier in the day he had said it would take an awful lot to get the fed off of reducing that track of regr reducing the quantitative easing by 10 billion. It was plosser who said he wanted the fed to be done with quantitative easing by the time the Unemployment Rate has 6 i saw a headline of him saying a serious adverse change could prompt a change to the taper. I dont want to interpret his comments as opening the door to something if the bulk of his speech he is not opening the door. Hes saying it is the default mode. Okay. Thats what the headline is from these comments which came later to the press after his published remarks or his printed remarks out there. Hes basically saying its the term default mode that we found most interesting on the news desk. This has been whats suggested, whats believed by the market but i dont think any fed guy came out and said default mode. But they will keep an eye on the Economic Data. No doubt. Theyre still data dependent but its how much data does it take to get them off that track. Thanks, steve. In the meantime a bailout for puerto rico is not in the cards were told after the s p downgrading puerto rican bonds to junk status. The white house considering its not considering Financial Aid if the u. S. Territory cannot immediate its obligation. You dont have to own puerto rican debt to be exposed to the fallout if they default. Joining us to explain lauren sco scott, also sean oleary, Senior Research analyst. Sean, it may be people who dont realize they have exposure to some of the puerto rican bonds in some of the funds they own, right . Sean . Go ahead. Im sorry. Its possible. There are certain punds that do own puerto rico paper, state specific funds particularly. But is this calamitous for those bondholders . Is this something we should keep an eye on . We keep hearing the hue muni bo market may be ripe for more defaul defaults. Is this the beginning of that . I dont think so. Its easy to delineate puerto rico from mainland credit. Most cities, states, counties, they sell debt for capital project. If theres some dislocation in the marketing they can sit it out and delay the Capital Projects until the pricing normalizes. Puerto rico is an entirely different animal because for more than ten years they have deficit financed, and they need the bond market to cover those operating deficits. To the extent puerto rico has problems, its not something that links back directly to the credit of the other cities back in the u. S. Mainland. Okay. I think thats an important distinction that should be made. Lawrence, here is what i want to know. People have been talking about how bad the situation in puerto rico is for months now. Municipal bonds were whacked last year. They have had a great run so far this year. What is the right thing for investors to do right now with regard to puerto rico . Well, you know, our investors at fundamental certainly ask us to manage money on behalf of their accounts in both hedge funds and private equity vehicles that are focused on these markets and actually anticipate this volatility and anticipate these they like it. These choppy circumstances. We see both securities that are interesting for investors as well as assets and services that municipalities, you know, look to monetize or look for assistance and we stand ready to invest along those themes. And it sounds like the yield pickup you can get in some cases is extraordinary. So whats interesting though, whewe were talking to alexander lavev that will, you almost have to sprite it into savvy investors and the guys who dont want exposure to pruerto rican debt. There has been a shift as to who owns puerto rico risk at this point. Remember, puerto rico is a 70 billion issue or Third Largest issuer of municipal risk in the marketplace behind new york and california. You wouldnt expect that Third Largest . Commonwealth has 4 Million People on it, and this is on account of the triple tax exemption. You heard the white house today say you have to interpret what they said, no bailout. Thats a flash point, that word bailout but if you look at their behavior as it relates to tweaking excise tax it is a soft bailout. You will say that, i wont. A large percentage of them work for the federal government or receive stipends and other backstops from the government. This is not a completely disjointed set of circumstances. Right. Shawn, when you get an event like this as were now hearing, the Third Largest issuer of municipal debt out there is downgraded to junk status, you will often get a response in other parts of the muni market. Have you seen that and do you think that presents opportunities right now . Well, im glad you mentioned the Third Largest issuer. It is the Third Largest issuer, but at 70 billion on a 3. 7 trillion market, its an infinitesimal spes of tpiece of market. Its held wide will you bly butf the broad scale of the market, its small. In terms of what its done to the market as a whole, its been unchanged today. Unchanged for puerto rico. And the reason being s