Scott wapner has been all over this one, and hell join us in a minute. Terrible flooding out in the middle west. This is a ferrari. What a terrible waste, ladies and gentlemen. A ferrari is a terrible thing to waste. Unfortunately, though, the damage goes far beyond that car, and that is just ahead. The rains have been coming down there. Meantime, to sue at the nyse. Thank you very much, ty. Well, ty showed you the dow. This week has been a rough week for the bulls. Right now the dow is down 89 parents, but it was down better than 150 at one point in the trading session, and weve had a significant percentage loss on the dow. Right now the s p and the nasdaq both fighting against the bulls in todays trading session. The s p is down about a quarter of a percent and the nasdaq is down just a fraction. Looks like its trying to tick positive. The russell 2000 is positive. Its in the green by about 1 5 of a percent and in terms of Interest Rates weve seen a big drop in the tenyear yield, 2. 59 on the tenyear. As for brent, last trade, up about better than. 75 . West texas intermediate is up almost a full 2 and the gold market is up 2. 90. Bob pisani joins me here on the floor. Im really glad its friday. Tough sledding. The market has had a lot of headwinds. The trend line slowly to the downside. Put up the Dow Jones Industrial average, had the same pattern yesterday. This bowlshaped v dropping down just before the noon at the bottom and then turning around. If you look at the dollar, and every to imthis happens, whenever the yen bottomed at exactly the moment. Thats the yen strengthening. Goes up, that means the yen is weakening. When the yen starts weakening the market turns around. I think there is some kind of relationship. Heres where i think were at in the markets. Number one, i think that the this overall, the issues are japan and the u. S. Are a bit on the stretched side. China is improving and europe is in bit of a sweet spot. Thats the important thing right now. Money is sort of flowing in. Theres the point here. Japan and the u. S. Stretched, and i think some people are not comfortable with the economy and earnings take stocks higher. China Getting Better and europe looking. Thats been attracting money. There you see steel, miners, second day in a row in group is up. Good Economic News out of china. One last thing, sue, the Home Building rally, real estate may completely keep going up, hopefully it will, but the Home Building rally going nowhere right now. The stocks hit highs in may and right now the Home Building index is at its lowest level of the year. On the year, yeah. A big group thats essentially rolled over. As they said in tandem. Thank you, bob pisani. Do you get into this market right now. Cnbc contributor Abigail Doolittle joins us on the floor and jim is out in chicago. Abigail, you look at the numbers and the patterns and the technicals. What are they telling you . Right now im reminded of a great quote by warren buffett. The time to get greedy is when others are fearful and the time to be fearful is when others are greedy. I dont look at this environment as greedy. Were seeing a lot of trade together upside with complacency. It tells me that investors may not want to get in at these levels for three reasons. First, weve really come too far too fast, up nearly 160 in just a little over four years. Isnt that amazing . Yes. This market needs to catch its breath. Second, much of it is driven by the fed. What if the fed does taper and all the other central bank support around the world . We dont know if that kind of aggressive support will work in the end, and i dont know if investors need to subject themselves to that at this point and a weak macro environment thats starting to bleed elsewhere. Cocacola, fedex, ups, they have missed and slashed. Even had ups saying that the Global Economy is slowing, so i think at this point you dont need to reduce exposure, but i dont think that theres any reason to add it there. Jim, what do you think of those arguments . Do you agree with abigail or not . I like most items. I cant give an enthusiastic thumbs up to the stock market after 150 rally in four years like abigail said. However, i dont think theres a ton of other options where to put your money. If i was one of the analysts and used words like underweight, that would be my exposure to the stock market. Absolutely you need exposure to the stock market. Somebody said to me, today, well, wouldnt you want to sell stocks in a rating environment and i thought, yeah, heres the problem, is if youre the guy who is leading the charge on the short side, the second that market really starts to tank, thats when the fed is going to announce that they are going to increase qe and not let it decrease and try to engineer lower rates. Were only in a raising rate environment if the stocks are stable or rallying in my opinion. What do you think . You know, i am one of the rare people on wall street that i do not think that rates are going higher from here. There are a lot of guys on the street. Think the tenyear is going above 3 . I think were going the other way, down towards super sets. So far today youre right. In a period of congestion so if we break below 2. 41 on the tenyear i think well break down and it will reflect the anticipation that the fed will have to stick around. The dollar index is fine. Go ahead. You said 150 in the last four years. Have there been times along the way when you said to yourself, gosh, the market has rallied 100 , weve got to correct now. Theres been instances and the fed has your back, yes . The fed has had our back the whole rally and i think that will continue to be the case and thats why were going to see the tenyear follow the dollar index and probably well see a little bit of rally in treasuries ahead. Thank you both. A rate t. Ty, up to you. Thank you very much, sue. A developing story. This one is fun to watch. Bill ackman, the activist, trying to push jc penney to do something. Shares down 20 , down 5 today alone. Very active. In a year down 41 , this as ackman sends a new letter to jc penneys board of directors urging the board to meet as soon as possible. It is filled with grievances from acmans point of view, he wants them out. Jc penny is at a critical stage in its history and its very existence is at a risk. I have lost confidence in our chairman eats ability to oversee the board. I would therefore recommend that tom be replaced as our chairman. Scott wapner has been leading the coverage on this story. And stacy joins us from london. Let me start with you, scott, if you dont mind. What is jc penneys response, so far as we know, to this ackman salvo . I spoke to a source and some of the accusations and facts laid out in mr. Ackmans letter is incorrect, that the board as a group has met on certain circumstances to discuss some of the issues that have been raised in bill ackmans letter. Its a long letter. A really long letter. One that he sent today which lays out a number of things, that executives have been hired without the full board being made aware. Hes chairman of the finance committee, that he read or found out in a press release about the hiring of a new marketing executive, one i might add that has been criticized if for no other reason than this particular person has no Retail Experience whatsoever, that they have come thats just one cample. All right. Stacy, let me turn to you, if i might. When you have this kind of opening revolt, shall i say, on a board of a company that has spilled over into the media in a big way through the reporting of scott and others among many. Is this good news for shareholders or good news for shoppers . You know what, its not. Its just not productive so throwing a tantrum in public to get what you want does one thing. This company is at a crossroads and is in serious trouble. Causing a distraction in the media, hurling accusations at the board and management, calling for new management right before the key holiday season, this is a complete distraction to the current management. They need to focus and get through holiday and reassure vendors so playing this out in the media probably not the best way to do it right now. Some people, stacey, might say, and scott, ill get your reaction, that jc penny is a company in need of disruption. It wasnt working, and mr. Ackman is disrupting. I was just going to say dont desperate times call for Desperate Measures . The stock market, stacey, has been voting on almost a daily basis that something is wrong, right, that whatever their strategy, is whatever their leadership is doing doesnt seem to be working. You can call it a tantrum what bill acman has done by sending these letters, but maybe the situation has just gotten so bad that this is what it takes to get the board to make the kind of moves that need to be done. Clearly thats the case that mr. Ackman is making in both of his letters, that the situation has simply become too dire. And hes got real money on the table, a lot less real money than he did when he put his money into it. Stacey, your reaction . Yes, obviously this company is in serious trouble, but lets not forget who put this company in serious trouble, ron johnson who ackman hired. Thats fine, thats history. Ullman has only been around for four months so to suggest that the situation should have been turned around in four months, that he could have righted the ship in that amount of time, you know, i just dont think it is reasonable. Yes, the plan is to look forward and look for a new ceo. The problem is when you play this out in the media like this, a ceo thats running a company that has a great track record who could help this company is hesitant to come in with all of this animosity, so i think thats thats one of the key issues. All right. Stacey, thank you very much, Stacey Widlitz joining us from london. Scott, well be watching this all weekend. That letter is something else. Not the last thing thats going to happen. Thank you. Sue, down to you. Yeah, that story keeps on giving, doesnt it . All right. Another big story today is blackberry. Right now the shares are up 7. 5 because there are reports the company could go private. Seema mody is following the story for us and is at the nasdaq today. Hi, seema . Thats right. Blackberry on the move. The companys board is said to be warming up to the idea, and no deal is imminent and blackberry has not launched a sales process. Disappointing sales and earnings, the street has been discussing whether blackberry should partner up with a larger tech firm or going private. In fact, during blackberrys latest Shareholder Meeting heinz was asked if they should break it up and he said, before you go into Strategic Options you have to create value. Just to put that into perspective shares are down more than 80 since the apple iphone was released in june 2007 equating to a market cap loss of roughly 30 billion and over the last six months Short Interest as a percent of shares outstanding has been steadily increasing now at 35 . Tyler, back over to you. Thank you very much. We appreciate that. Seema and scott and i are still talking here about ackman, et al. Priceline closing in on 1,000 a share and josh lipton has the flash desk with a deal for us. Were watching prideline hitting a new alltime high today. The Online Travel agent surpassing its previous record of 990 in april 1999. That stock moving sharply higher, now up some 60 so far this year. Now this is a real comeback story. Remember 2003 priceline. Com almost history, trading below 2 per share and had to do a reverse split. After the bell yesterday, priceline reporting results that beat gross bookings up 38 , International Bookings jumped 44 and domestic bookings jumped 12 pass. Raymond james, cantor fitzgerald, lazard raising their price targets, calling the results very impressive and calling priceline a premiere internet franchise. It looks like today at least investors agree. Sue, back to you. A very different story, josh, on shares of dandion. They c and redbush put a zero, yes a zero price tact on that stock. Dendreon is already down 30 year to date, again, down 24 at this point. Back up to josh lipton at this point. Have a look at some of the coal miners, peabody energy, james river, they are ripping. Talking to some analysts and they are saying were seeing positive data points out of australia. In terms of price iing reports suggesting that spot met prices, prices for coal used in Steel Production into china, have jumped. Analysts say that chinese are opportunistic buyers and tend to buy in binges so maybe the chinese are calling in and picking up coal relatively cheaply. Could be seeing inventory restocking here which does tend to happen, analysts happen in fits and starts. Back to you. Big trends developing when it comes to newly built homes. Weve got that story next. Plus youve heard about the great rotation. Another rotation to tell you about. Thats two minutes away. Well keep you guessing. Well be right back. Now to the reality check, big numbers from one very big subseeks of the house of market. Diana olick live in washington with the details. Reporter hey, sue. The numbers are for the Home Builders as rising Mortgage Rates start to wear on the housing market. One bright spot may be for the builders and rising rates arent good news for them but they could be able to weather them better than the existing mortgageablegationed. Jumped 14 according to the bankers association. This is a big gain given that rates are significantly higher than they were three months ago. Based on the applications its estimated that 43,000 newly built homes were purchased in july so the builders have an advantage because they can tailor their homes to what their customers want. If rates are higher and customers cant pay as much they can build the homes to what the buyers new. Thats what one exec told me earlier today and they have something to sell. They can also help buy down Interest Rates as part of the deals. This comes as analysts say higher rates are taking their toll on the existing home market. They found a sharp rate in Mortgage Rates has led to a pause in demand and the initial agency that they saw from some buyers as rates moved up have now subsided and buyers are stepping back to reevaluate their options. Tyler. Thanks very much, diana. If youre looking on ideas where to invest from now until the end of the year our next guest has some ideas. He managed overseas 2. 4 billion in assets as a senior Global Portfolio manager with the jpmorgan with morgan stanley. Got the wrong morgan in there, a company that shall not be named. Welcome, lets talk about your view of the u. S. Market is. Down this week and the roughest week in many for equities. Should i be worried is this an expectable breather. 20 rally year to. Date wouldnt be strange to have a breather. Theres not a lot of Corporate News and when the focus turns to d. C. Thats when the anxiety builds. D. C. In two ways, one is the fed and the other is gridlock. All the political kengss around the world. Political tensions. You make the argument that over the intermediate or longer term that you think u. S. Equities are a good investment, why . Because were in the early phases of the second part of a bull market which is in the first stage everyone is sitting on the sidelines so the only thing that moves the market is earnings so from 2009 to the end of last year the multiple of the market didnt go up at all but now were in the. Second stage with people coming back. Expansion is not that much. On a forward earnings basis. 12. 5 to 14. 5. And it could go to 16, 18. That could be consistent with history so all the people who have told us this time is different they have really been wrong. Since they are wrong so far shouldnt we see more expansion. You also think japan is a target of opportunity, why . If you look back to 2009 when we started the qe programs, the economy was in a fupg, but low expectations and a very accommodative fed. The market hasnt done much for quite a while. The japanese market. I think they are earlier in the game and they have a leader who has consolidated power without the gridlock in d. C. That chart shows the volatility. Youve got to strap on the market. Pullback for the opportunity to get in. Without getting too technical a lot of people worry about the currency moves in japan, that you have to protect yourself against that and hedge the currency, whats your view . Hedging the currency actually makes the investment in japan riskier. The leaderships goal is to lower the value of the yen to pep the exporters. If hes wrong the equity market will go down but the yen will rally. And you get whacked two ways. So if you hedge the currenty. Let me steal you back and do something i know you hate to do. 15,427 and 1693 on the s p. Do you think that those two indexes end the year higher than today . Yes, yes, i do. Im not so sure from now until labor day they will be hair, but, again, i could back it would be inconsistent not to believe well have further pe expansion. Thank you. I know what company you work for. In todays ya finance question of the day, we ask do you think the u. S. Is still the best place to be investing . Right now 73 of you say yes and 5 say no. Its japan. 8 say its europe, and others say its the bric nation. Big problems for tiger woods. Could i have putted into that hole. You wont believe whats happening to his home. Plus, what a waste. A ferrari caught up in floods plaguing a huge part of the u. S. Well take you there next. With the spark miles card from capital one, bjorn earns unlimited rewards for his Small Business. Take these bags to room 12 please. [ garth ] bjorns Small Business earns double miles on every purchase every day. Produce delivery. [ bjorn ] just put it on my spark card. 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