The nasdaq pulling back from yesterdays 13year high, down 9 points at 3,598 on the nasdaq. The market pulling back from the record highs ahead of the Federal Reserve chairman Ben Bernankes congressional testimony tomorrow. Thats what well all be focused on. Bob has been covering the Market Action all day. I guess it cant go up every day, right, bob . No, thats right. The important thing is, record high, a modest decline. I think thats important, given the caution weve heard. Look at the Dow Jones Industrials average. A fairly narrow range. Esther george, head of the kansas city fed, came out in the middle of the day talking about tapering sooner rather than later, but a wellknown hawk on this issue. It didnt move markets that much. Maybe 30 points on the Dow Jones Industrials average. We ended just slightly to the downside. Theres the dow. Other things here. Weakness on earnings. Four sectors that mattered today. First, the fertilizers. Mosaic came out. Prices for fertilizer were down, specifically phosphate, their main product thats there. And that affected all of the fertilizer stocks as you can see. How about the brokered dealers . Schwab came out with numbers. It was okay. They talked about trading volumes being on the muted side. As you can see, the broker dealers were weak. I think the most important stock was comerica, which came out with good numbers. Comerica was the first real Regional Bank to report. We were looking for loan growth, and they didnt report it. 2012 they had 8 , so far 3 in 2013. Thats the key fact that affected all of the Regional Banks. Comerica down about 2 . The beverage makers, coke disappointed on volume. Down right across the board in all regions of the world, including north america where they posted a very rare decline in volumes. The issues, well, there were several issues. They blamed it primarily on the weather. A couple of other factors, foreign exchange, Weak Consumer Spending and a lot of people have speculated that concerns over potential Health Issues may have weighed on that. Look at their beverage volumes. Its interesting to note that still beverages up 6 things like water. Sparkling beverages were flat. Obviously, maria, growth in the still area. I think the sparkling is the one thats flat now. Back to you. All right. Interesting. The sparkling is flat and the flat is doing better. Bob, thank you very much. Stay right there. Were going to talk more about the market moves, bob. With us is michael from pension partner, jeff from fifth third bank, gentlemen, good to see you. Thank you very much for joining us. Michael, let me kick it off with you. Are you as focused on bernanke tomorrow as the market seems to be . The market seems to be in love with this jekyll Hyde Bernanke we see as dove from hawk dove to hawk. But i think we have Something Interesting here with the market, which is were at a juncture where emerging markets in the last few days are starting to outperform. Remember, they lagged very badly as the tarp spasm occurred. Given the thread is the widest its been since 1998, and that we actually have not had longterm Capital Management crisis, not had a russian default, not had an event, it doesnt matter what bernanke says, in terms of the next fat pitch, which is everything outside of the united states. Look at these emerging markets, seems to be bouncing here, jeff. You think that were looking at the bottom in emerging markets . Would you put money to work there . Yeah, we actually continue to do so. We think valuations have gotten to such a cheap level that just on Earnings Growth alone, the stocks can move higher. The market had to go through an adjustment process where we realize china notably, some of the other emerging markets needed to go through a readjustment process and growth, but theyre still growing. Theyre still growing at a good clip relative to the developed world. I think that bodes well for emerging markets investors. I think emerging markets are attractive. The problem i have with it, guys, you have to be comfortable with a heck of a lot of volatility. The emerging market index we put up, it goes from 35 to 45 and back to 35 every four, five months. Thats an awful lot of volatility for an average investor. But let me add something go ahead. Let me add something quickly to that. No risk, no reward. The s p is all the way up here, Asset Allocation models have done poorly, because everything but the s p has done poorly this year. Now, id rather bet on the bottom than the top. Emerging markets can catch up s p can fall down, theres a very beautiful trade in there. Is it just a trade, buy at 35, sell at 45 . Well [ overlapping speakers ] longterm growth rates, you have to believe the growth in the world is going to come from some of the emerging markets. And i get that. And when youre doing that, youve also got to take the volatility, because thats what weve seen. You know, it has been a long time now that weve seen seeing outflows in emerging markets. And my question is, jeff, do you think the emerging markets have bottomed . I do. If you look at the currency aspect, which we really havent talked about, besides china where its on a separate and longterm strengthening path, but the other currencies, for the most part, they move from the top of the range to the bottom of the range. If theres going to be a buy opportunity, its in here right now. Yeah, okay. So how about the u. S. . Does that take anything away from the u. S. . Are people is it an either or an or . No, it really doesnt. No, when you have globally growth, globally coordinated growth, all boots can rise in this environment. I would be a less enthusiastic perhaps, and, michael, in terms of the emerging markets stance, we still like them. But were concerned were seeing tightening moves there that will be a little bit of a hurdle shorter term. Yeah. And thats something we saw in brazil. Guys breaking news on yahoo . We appreciate your time. We want to get to jon fortt. Looks like a beat on the earnings line. 35 cents a share. What can you tell us on yahoo . Reporter good news and bad news, marie yachlt the good news is the 35 cents a share nongap though weve got to go back and check, yahoo stopped including stockbased compensation in their nongaap eps, so we have so make sure were comparing apples to apples. Revenue may be light. 1. 07 billion, consensus was 1. 08. But the real good news probably is that display ad revenue was 423 million. It had been weak lately. Thats a little better. Search a little weaker than some might have expected, at 403 million. Search had been doing better than display. We have a little bit of a reversal there. Display is yahoo s core business. So thats a bit of what you want to see. Now, i want to take a look at the cash balance. Thats at 4. 8 billion. Thats down from the 6 billion balance at the end of 2012, and yahoo did repurchase stock, spun around 363 million on that, they mentioned acquisitions. Outflows were offset by 846 million in cash from their ali baba investment. So want to hear more about how the core business is faring, and well look through here to see the fullyear outlook. This helps. This helps a little bit. But still, their fullyear outlook calls for about a 4 increase in revenue in the second half versus what they did last year. Thats going to be a challenge. Well see if they think they can do it. Jon, stay right there. Pop in when you have something new and breaking. We want to continue to follow the yahoo numbers. The stock price, it was flat initially. But were seeing a pop right now in yahoo shares, up about 1. 5 . Joining me now to break down the number, david and roger, good to see you both. David, whats your take on the numbers . I would take a nickel beat on basically inline revenues anytime. It argues for me that margins are better than people had expected. The big trick for yahoo Going Forward is that given theyve acquired tumblr and spent over 1 billion to do it, and tumblr has a lot of traffic and not monetization, the question here for ceo Marissa Mayer, okay, you spent a billion dollars, you bought traffic, lets see how we can leverage this so that this margin surprise that we saw in the Current Quarter can be extended going into the second half of 2013 and then into 2014. This stock has do you know so well this year. Certainly its done well under Marissa Mayer. Roger, how much of the gains can you attribute to a strongly performing core business, a business that seems to be gaining traction . I would say not too much. Really . Most of the gains have been Marissa Mayers star power, her connections throughout silicon valley, and her acquisition strategy, which has been very high profile and drawn a lot of attention to the company. But the core business has been stagnant. The numbers are a little better. The earnings look good. Surprise beat. Thats pretty good. The stock is pretty topee right in here, given that its come all the way up on essentially sort of rumors and wishes, and the new properties have yet to perform. So i remain a bit skeptical here. Skeptical about what . Maria . Yes, go ahead, john. One second, lets just get this breaking news on the go ahead, jon. A couple of things i want to adhere. Important metrics. The price per ad sold in display down again. Sorry, the number of ads sold also down. But the number of ads sold down perhaps a little less than some might have feared. Also, in search, a trend we had seen before, continues. The number of clicks, number of paid clicks up, but the price per click is down. So those are important factors to consider here, also. Yahoo says that theyve essentially completed their commitment to return 3. 65 billion from the Ali Baba Group proceeds to shareholders, raises questions about what comes next. The cfo says we plan to continue to execute against the 5 billion Share Buyback that was authorized last year, of which approximately 1. 9 billion remains. So more buybacks coming, maria. Huh, all right, roger, please finish your point. Yeah, well, so basically, you have ali baba finding acquisitions and Share Buybacks, and thats nice, but it wont last forever. Underneath that, you have the core business, which is, you know, its doing okay, a little of this, a little of that. Somes up, somes down. But basically, its and assault and you have competitors, facebook and google that are coming after them as much as possible. Somewhat of a troubled relationship with microsoft on the search side. And none of that is settled. I would say the core business looks relatively flat and it doesnt look like it will increase meaningfully in the near future. And all we can hope for is some of the acquisitions they financed through ali baba will turn in fresh revenues in the future. David, compared to when Marissa Mayer took control of the company, is this a company in a better position today headed in the right direction . Oh, head and shoulders better than what it was a year ago. From this standpoint, you have somebody whos a reeg technologist and driving the company, and fortunately for you, she has a Balance Sheet thats got 15 cash net for ali baba that can be divested in order to Fund Technology development and make this company far more competitive than its been over the past five years when the ceo position was revolving door. Well, thats true. I think you also zsh stability. You have to give her credit for pulling together the morale of the company. Shes done a lot in that department, as well. Right. And thats an important part of the story. Gentlemen, thank you very much. Any other breaking news, jon, from your standpoint . Nothing else except were going to need to hear on the call how they plan to make that fullyear guide. Again, this leaves a big gap between what they promised and what theyve been able to deliver so far, maria. All right. Well leave it there. Well be watching the yahoo story. We appreciate the insights. Another big company out with earnings. Josh lipton with the details on csx. Yes, watching csx here, the big railroad report and beat and moving here in the after hours. Earnings per share of 52 cents. The street had been looking for 47 cents. Revenue clocks in at 3. 1 billion. Street had been looking for 3. 02 billion. The company also saying earnings per share growth for 2013 is now expected to be flat compared to prior year levels, and it says it continues to expect annual earnings per share growth of 10 to 15 on average through 2015 off the 2013 base. The stock up about 2. 5 right now, up about 30 so far this year. Maria, back to you. All right. Thank you so much, josh. The rally is on. Ahead of Ben Bernankes testimony, it seems. Well find out if the market and your investments should be on hold and what to expect from the chairman. Then, if you are eyeing early retirement, you need to hear about a new study that shows it could be incredibly bad for your health. Thats coming up on closing bell. Stay with us. To generate income . With fidelitys 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. Before their gift helped preserve the point. Before a credit solution was used to expand their business. Before trusts were created for their grandkids educations. They chose a partner to help manage their wealth. One whose insights, solutions, and approach have been relied on for over 200 years. Thats the value of trusted connections. Thats u. S. Trust. Okay. Welcome back to closing bell welcome back jon fortt, take it away. I will take it away. I have yahoo s guidance here from the slides they just posted. It is disappointing. Yahoo guiding in q3 to revenue between 1. 06 and 1. 1 billion dollars. That is below what wall street was looking for. They were looking for better than 1. 1 billion. Also, it looks to me like the current year outlook for revenue has been taken down. The midpoint had been 4. 55 billion. Now the range is from 4. 45 to 4. 55. So what was the midpoint is now the high end of the guidance. As i had been saying, if the numbers came in where expected, it would be tough for yahoo to get to a 4 increase in revenue in the second half. That would be a big problem to make. It looks like yahoo is not making that promise. They are bringing down the guide, maria. All right. Thank you so much, jon. The stock going from up about 1. 5 to down almost 3 . Thank you so much. Well keep watching the stock turning lower on the disappointing Third Quarter outlook. Fed chairman bernanke is set to talk tomorrow. Weve come to find out that when he talks, the markets react. It was a q a session last week that set off a huge end of the week rally. Joining me now to talk more is jim from American Enterprise institute and our own jeff cox and rick santelli. Good to see everybody. Thank you very much for joining us. Jim, your expectations for ben bernanke. I think were going to hear a lot more thats going to sound very repes tiv. He will talk about Interest Rates. Hell make it clear they wont raise Interest Rates for a long, long time. And then, also continues to suggest that tapering is on its way. We would love to have the calendar. We would love to have the tapering calendar. Were not going to get that. If we cant get the output that would be the input. I would like to know what he makes of the huge disconnect between gdp growth and job growth, which is a little better. Gdp is lying or mr. Payroll is lying. Thats a good point. Rick, im wondering if were going to hear bernanke backpedal out of some of the commentary that we heard initially about the tapering, because, of course, he says the market misinterpreted and the data, as jim just mentioned, its just not all that hot. No. And i would disagree with jimmy p. Just a little bit. I dont think jobs are terrific, because i think the parttime job distortion, thats the terrific part. The real issue is between corporate profit the and lack of growth in the economy as depicted by gdp. Jimmy is right, what the market wants to hear is a schedule for the taper. Probably wont get it. What the market wont listen to, in my opinion, and well never understand and its not a question of whether the market is dumb or smart or ben is dumb or smart, its just venus or march mars, its a taper reduction is not a tightening. The market looks at it like quantitative easing is a way you ease when you have zero Interest Rates on the Effective Fund size. That is an ease. Taking away the biting is a tightening. And that will be venus and mars. And i suspect the market will have a problem tomorrow, because its not going to get a timetable, and i personally would like ben to be a little bit more honest about the motivation for taper, because i think Everybody Knows the force is disruptive in the mortgage arena, and theyre going to have to stop. They cant just keep buying at the current pace. Thats one of the catalysts to the taper. I wish that would be vocalized. I know tapering is not tightening, but at the end of the day i think it is. The beginning of tightening. De facto tightening. But it is tightening. Thats the bottom line, jeff cox, why were waiting on, as rick says, a schedule or any, you know, information in terms of a look at when this socalled tapering or tightening, whatever you want to call it, begins. Yeah, maria, heres what you have to take away from what weve seen over the last several weeks. The fed is at the mercy of the markets, and the fed has reacted to the markets. We saw that violent reaction last june after the press conference from mr. Bernanke when he made that just slight indication that tapering was on the way. The markets reacted violently. I think the tails going to be wagging the dog here as far as the market and