75 . And the stand poors down 10 points. Red arrows on wall street. Red sectors in the lead on the downside. Bob, what was it all about . The important thing is, a little bit of fed speak and a little bit of Economic News that didnt add up for anything positive overall thank you, william. Getting ice cream from william here. Lets look at the key point here. A couple of fed speakers will lockhart said the fed could begin tapering anytime this year. Mr. Evans in chicago would not rule out a september tapering. That was interesting, because hes a big it may have weighed on the market. It came out in the middle of the day. Overall, more technical in nature what was happening, maria. The market leaders looked tired. Biotech and the homebuilders and the transports. Theres been a high level of complacency with the vix very low. And the u. S. Outperforming the world for months and months, and that will continue, because the economic numbers are still pretty good overall. The trade deficit, narrower than expected. Thats a beat. The other day, ism services, nonfarm payroll, the only real outlier weve had so far in the july economic numbers. Individual sectors today, Retail Stocks were very noticeable, because certain stocks were up and certain were down here. Michael kors and fossil had great commentary on the rest of the year. Youll notice the companies, the same thing they have in common, accessories boots and jewelry, all doing well. Look at teen retailers, american eagle, very negative guidance, and it weighed on that particular sector. A great interview with Ashton Kutcher and looking forward to the second half of that this afternoon. Oh, thank you so much, bob. Well talk about the movie, jobs. Joining us now to break it down, amy wu, david from hightower and michael and gordon, just finishing up the trading and gordon will join us in a moment. Amy, let me kick it off with you. What does todays Market Action tell you about whats ahead . Hi, maria. You know, i think part of it is is the doldrum of the summer months. Its not telling you as much as we would like, obviously. Life after taper is on everybodys minds. From an options perspective, we really didnt see a ton of hedging. We saw some volatility being botched through the vix call spreads, a little bit of hedging. Again, really not as much as you would suspect. I think a little bit of it has to do with the low volumes during the summer. And the low volumes have been an issue pretty much for the year. I mean, does it bother you that volume is low even when were going up . In other words, you dont have that kind of participation on the upside or the downside . Yeah, no, its definitely been an issue, and weve had this consistently low implied volatility regime. And i think one of the things that happened is people who own volatility, owned hedges earlier in the year, got so burned because the market continued to go up. Theyre not willing to do any more hedges, and you know maybe this time around its the boys cried wolf too many times and this may be the time when you need it. Right, right. Gordon, you finish your trading for the day. Youre with us from rosenblatt securities. Tell me what went on at the end of the day here. What does this market tell you, down about 93, about what could happen tomorrow . Its an interesting market, maria. Some of the guys were thinking they were taken down harder at the bell. They stabilized a little bit. It was a particularly ugly close. Its a funny market now, because we have a situation where you have people that seem to be afraid there will be tapering. You have people that are afraid because they think the economy is slowing down. So you dont get the sense people are afraid, and theyre not sure why theyre afraid, but the markets at an alltime high, and, therefore, theres a reason to think it will back end. Overall, though, its starting to feel like a summer. A lot of guys would be happy to see this thing take a little bit of a breath over the next three, four weeks. Unfortunately, i dont necessarily think that will be whats happening. You have things in the fall that people will be planning for, some forwardlooking events. Youll still have the debt debate down in d. C. Youve got german elections. So there are a lot of stockspecific things happening today, over the next month or two, so its going to get interesting here. But the trend right now is just to back in a little bit. Its not a correction. Its a healthy retracement on sort of a minimal level, and, you know, about what you would expect considering where weve been, how weve gotten here. In fact, we havent had a correction, pretty much this entire bull leg. The worst we saw was down 3 or 3. 5 . David, does that frighten you . Do you want to put new money to work here . Yeah, no, were not really inclined to put money to work here at these levels, maria. I mean, were a longterm investor, and were bullish on the u. S. Economy long term. But after a 20 yeartodate rally on multiple expansion, not a lot of Revenue Growth to go with that, and then a heavy, heavy dose of fed monetary medicine supporting the market, we think maybe a little bit of taper fears are coming back into the market here today. So were not inclined to commit new capital at this point in time. Our biggest fear as we look ahead, qe 1, qe 2, and those programs ended, we had precipitous declines in the markets right after that occurred. So here we are, you know, a third time at bat, so it reminds us of a scene from Charlie Brown where bernanke plays the role of lucy, the football is our monetary policy, and our concern is investors chasing the market are Charlie Brown, expecting a different outcome, and probably going to end up flat on their back if they chase the returns at these levels. Good analogy. Lucy and Charlie Brown. I like it. Mike santelli, what about that, in terms of bernanke and the fed . Have the expectations changed for tapering beginning in september, given the Economic Data out there . I think septembers still the oddson favorite. I honestly dont think the stakes are quite as high in terms of exactly when the reduction in bond buying is initiated. By that, Charlie Brown lucy analogy, how will we define what the end of qe 3 is, when they start to cut back, is it when the sun sets entirely . I honestly think its probably not as big a swing factor. I want to say the bond market reacts to the prospect, and i guess the anticipation of september assuming that remains a target is going to be a perfect excuse for this market to maybe back off a little bit. August and september are the time when is it might do that. Even in the best years weve had, and by the way, this is one of the best years ever, the best since 97. Youve had some friction in august, as you digest the game. So to me, it makes a lot of sense. I want to see how sentiment responds to every little dip, because in the past, 2 dip, people start actually having the little minipanics and that has almost thwarted the downside. Thats why we havent had a fullblown correction. Yeah, its true. You know, some might say weve seen corrections in a handful of sectors as the rotation has evolved. Gordon, technology has been underperformer today, and today were looking at ibm to be a problem for the dow. Where are you seeing the most sellers in terms of industry . I mean, each one is specific. I mean, thats what you see in a market like this, where volume is down. You know, ibm, some analysts i think downgraded, and that precipitated the move weve seen lately. Look, some of these things are were high flyers and they maybe got ahead of themselves a little bit. The question remains, is this going to be a market that people feel the performance squeeze and anytime it backs in, theyll be there to buy them through the end of the year, or is it going to be a fullturn reversal or correction . Im sort of from the former on that. It seems to me what im seeing, guys are still sitting there waiting for their opportunities to pounce, and it just doesnt feel to me like, you know, we really have that sort of sense that of gloom and doom. I think well be okay. Youre going to see a little bit of a selloff. You know, every time that these guys get an opportunity, particularly as they try to chase returns into the end of the year, theyll be there with the buy orders. When does that change . When does the buy on the dip mentality no longer work . Is it when Interest Rates are at considerably higher levels . Well, you look, there are a couple of things at play, and certainly Interest Rates is one of them. The fed tapering. Look, they taper, how much will they taper. They go from 85 , take it down 10 , billion, not million, sorry. How far will they go . So theyll fine tune it up there. It wont be that they just stop. Theyll adjust it as they think is necessary. The market seems to be stage. Europe seems to be picking up or holding its own. Were grinding along okay. Theres no reason to suspect well have some sort of fullblown correction or reversal here. All right. Well go to john. Were watching earnings and fox is out. Getting to Julia Boorstin now with the 21st century fox results. Over to you, julia. Look at that stock. Maria, yeah. This is the first Earnings Report since 21st century fox spun off from news corp. And revenue came in better than expected at 7. 12 billion. Expectations were 7. 12 billion. Now, thats up 16 from a year ago. Now, earnings per share are coming in less than expected. Adjusted earnings per share for fox is 31 cents for the quarter. Wall street had been looking for 34 cents. So thats three cents less than expected but the Company Gives the comparisons to the yearago period, up from 27 cents a year ago. This is foxs fiscal Fourth Quarter and the company says that the 10 increase for annual revenues nearly threequarters of this reflect s growth at cabe Network Programming and television. The real growth was ad cable Network Programming. And we saw an improvement in filmed entertainment and also improvement in direct and broadcast satellite television. So, maria, this is the company thats free of the newspaper assets and it seems to be making progress. Back over to you. All right. Thank you so much, julia. The stock up almost 1 right now on fox. Breaking news. President obama is outlining a proposal to overhaul fannie mae and freddie mac. Diana olick is monitoring the president s speech happening now in arizona. Diana, over to you. Reporter thats right, mar e maria, the president is at the podium in arizona. This is a part victory lap and part call to action. The focus, mortgage finance. He will say private capital should take a bigger role in the Mortgage Market and advocate winding down fannie mae and freddie back, which back twothirds of all new loans, the president s plan to make investors pay up front for limited guarantee of Mortgage Securities mirrors a bipartisan bill now in the senate. Were really at a critical time for Housing Finance reform. If they cant get a bill through the Senate Banking committee this fall, you may be able to write off Housing Finance reform for the entire obama administration. In many ways, its now or never. Reporter the concern is that now amid rising Mortgage Rates, winding down the government mortgage giants will inevitably make loans more expensive, this as low rates have been credited with the recovery. In addition to overhauling mortgage refinance, president obama is calling on congress to allow borrowers who dont have governmentbacked loans to refinance through fannie, freddie and the fha. That would, of course, transfer risk to taxpayers yet again, and its Something Congress is unlikely to do. Maria . All right, diana, thank you very much. Diana olick. Well take a break. Disney magic on the line with the latest earnings. Well have the numbers from disney in just a moment with instant analysis. They are expected to report momentarily. Dont miss the second part of my exclusive interview today with Ashton Kutcher. Well find out the extreme measures he took to become steve jobs for the new movie jobs. Well be right back. Stay with us. Uhoh guess what day it is . . Guess what day it is huh. Anybody . Julie hey. Guess what day it is . . Ah come on, i know you can hear me. Mike Mike Mike Mike mike. What day is it mike . Ha ha ha ha ha ha leslie, guess what today is . Its hump day. Whoot whoot ronny, how happy are folks who save hundreds of dollars switching to geico . Id say happier than a camel on wednesday. Hump day yay get happy. Get geico. Fifteen minutes could save you fifteen percent or more. Welcome back. Disney earnings due out any moment right now. Lets chart with barton with a preview. Joining me right now, barton, good to have you. Happy to be here. Tell me the headlines youre expecting out of disney for this quarter. Were waiting on the numbers right now. The Third Quarter is the quarter theyre reporting. 1. 01 is the estimate on 11. 64 billion. What are your expectations in terms of what drove the business . Im expecting they can miss that a little bit, take a 200 million writedown on the lone ranger. Outside of that, i expect things to be good. There will be seasonal skews in parks that will slow down the growth there. Cable networks, expect to them to have good ad growth. The affiliate fee story will look solid, although it will be slower in past quarters because of accounting issues. The big picture here these guys are getting paid well for their content across multiple platforms on tv, Cable Networks, broadcast, you know, so i think its a good company and i like the stock. Barton, the numbers are out. Lets get to Julia Boorstin and then get your take on it. Maria, disneys earnings per share at 1. 03, two cents better than wall street. Also up two cents from the yearago period. Disneys revenue for its fiscal Third Quarter coming in at 11. 5 billion. This is just a tad shy of the 11. 64 billion that wall street had expected. But it is up from the 11. 08 billion in the yearago period. Now, looking at whats driving the results this quarter, maria, its no surprise. It really is the Media Networks. That is that area of strength there. The Media Networks really driving the strength. We did see parks and resorts revenue at 3. 68 billion. That is just a hair less than expected. The studio saw only 1. 59 billion in revenue, so that is a hair light on the studio, and looking at the quarter, we are going to expect to see in there doesnt seem to be any comments in here about the lone ranger. The company did have to take some costs from the lone ranger, but no comments here on whether or not theyre going to be taking a writedown. We do expect to hear comments on that on the earnings call. It did seem like the real strength here, maria, is the Cable Networks, 8 growth in Cable Networks revenue on the quarter. And, also, we saw growth in the theme parks division, as well. Well continue to dig in here and get back to you with more. All right, julia, thank you very much. The stock, of course, looking lower in the extended hours on that Third Quarter report. Back with barton crockett, talking about disney here. You heard the headline numbers, barton. You like the stock here . Yeah, i do like the stock here. Yeah. Were arguing that the stock could be up 15 or so over the next year. We think really powered by the Cable Networks, which sounds like that was kind of the highlight of the quarter. Isnt it always, though . Isnt espn really the dominant force in the quarter . Yeah, you know, i think its almost silly that they call themselves disney. They should change their name to espn, because that drives the majority of the products. Its turned around. Its trading up. Well check in again with julia. Over to you, julia. Yeah, maria, i wanted to dig into the Media Network numbers. It grew 5 from the yearago period. The Media Networks is what grew 8 . Now, parks and resorts also showing similar strength, 9 increase in parks and resorts operating income while the parks and resorts revenue grew 7 . Now, digging in here, maria, no surprise this looks like this is on strength of the Cable Networks from both advertising and fees. They dont break that out. The Cable Networks grew 8 in terms of revenue. Broadcasting and contrast was flat. When it comes to operating income, the Cable Networks grew 12 while broadcasting lost 21 in operating income. Really seeing the strength in Cable Networks outweigh weakness in broadcasting operating income. Back over to you. Thank you very much, julia. The stock at 67 and change right now. Were talking with barton on disney. What else is working, barton, away from the Cable Networks . Well, you know, i think that disneys really in a great Margin Expansion cycle for their theme parks. This will vary quarter to quarter, but theyve made great investments in california, in florida. Theyre letting them take rate attendance is solid. Margins moving back to prerecession highs, which is great for the story. Beyond that, the broadcast segments, industrywide, has had difficulties with declining audiences on tv. Youre getting paid more for carriage, from cable companies. Cbs and Time Warner Cable are in a blackout. Cbs, i think, will get a lot of money there. Disney will benefit from that in their broadcast segment as they get paid for the abc stations over time. The big pi