Watch. Jpmorgan today says buy the bounce. Well talk a lot more about that later this morning. Our rolled map begins with the markets trying to hold their ground after one of the worst days for equities. Like we said, in eight weeks. Dells profit falls 72 as the Company Looks further out to that potential future under private ownership. And described as an unusually stylish geek. Yahoo s ceo Marissa Meyer is in vogue, literally. First up, more signs of wait for prompter here. Seemingly weak economy, Housing Starts up at zoom but below consensus. Mike, how much damage was done yesterday with dow below 50day moving average, the stocks, financials, the transports, all the same . The market ak acted ragged but yesterday it hit it. To me its not just the fear of the fed taper. Its a fear of the fed taper at the same time that Everything Else doesnt look unequivocally great. I also find its interesting how the market doesnt like when labor market data is better than other Economic Data because they feel like the fed is fixating on that. We had all these years when the labor market lagged gdp. To me its more of the market coming to tearrms that i win tails, you lose market. What happens when we get the taper, i do wonder. Its almost the fall. You know, is our stocks going to actually react negatively yet again . Is the bond market going to reverse itself . So where is the tenyear yield at the time when we actually get the confirmation that its here and is that short term . Does the bond market yield it in already and who knows . Dan greenhouse points out, weve been through this before. There was a juniper idea where we bottomed out. Since that time the tenyear is actually about 25 basis points higher but s p is about 6 higher. Yeah. So can that argument continue where people, whether they realize it or not, are in an environment where higher rates can coincide, albeit with the normal adjustment turbulence, he says. Thats what i think has to happen. The stock market kind of makes its peace with why the yield is going high per. It cant happen in a very violent way, too. I think the other thing that we dont know exactly is, youre see that people not liking when the yen rallies. So you have all of theres correlation trades that seem to be on out there that are related to, you know, developed market yields staying very suppressed and thats no longer the case. I mean, to be fair, this is august, of course. And these are extraordinarily low volume days. Weve seen the prevalence of etfs and the like have a real impact where we are. But also to be fair, it wasnt et cetera not been a great earnings season. No. This week walmart, macys, starting to concern be concerned a bit about the consumer although theyre doing very well when it comes to Housing Starts. Not bad on housing. Although still today, echoing the ones set earlier in the week. There does seem to be a convergence. With the backdrop of 3 nominal gdp growth. The pie is not getting that much bigger just in terms of total output and spending. Although jpmorgan, tom lee has been bullish all year long. Their slide deck today talks about europe coming out of recessi recession. Global gdp rebounding a bit. Earnings per share on s p. Some of the figures are startling. But that is the bull argument. The bull argument is that you keep finding Something Else that kicks in just when one thing has been expended. Here to give us his economic outlook, s ps chief global economist paul sheer joins us this morning at post nine. How do you reconcile, for instance, what the isms are saying versus what the regionals have been saying. Ism versus industrial production. Are we in an environment where gdp will look better in the second half . We we think so. We think the economy is poised to shift up a notch. The fed and the discussion about tapering and i think people are moving toward a call of september on that. That doesnt look likely to us. We have a fed here that really wants to underwrite this recovery. The gdp numbers, the fed launched into socalled ge3, average of 1 . That is set to come up. I think the fed is going to want to see a run of stronger data. Its got inflation on its side here because theres no threat of inflation at the moment before it starts to taper off quantitative easing. Would that mean in october, in december . We think its probably i think probably. Were calling for december at the moment. But again, i think the thing to understand here is were all getting wound up about tapering. It is really just the beginning of a slowdown in the incremental quantitative easing that the fed is applying. Its not monetary tightening but its starting tos off on the accelerator a little bit. But its all results dependent. The fed wants to see a strong recovery. And i dont think its going to make any big mistakes here in terms of tightening too soon. Isnt that actually the reason i think the market gets anxious, because they worry that the fed is intent on beginning tapering sooner than later even when it doesnt have that economic motivation to do that. I think thats misreading the fed actually. Theyre not really intent. The fed is not going to come into a meeting and blind side the market and do some taper. I think the june statement from chairman bernanke is all about just starting to communicate a little bit more in a more grandular fashion to the markets about their thinking. Lets face it, that element of Forward Guidance around the asset purchases was very, very vague relative to the Forward Guidance. I think theyre trying to give a little bit more clarity. Discuss it in september but thats a big difference between actually making the decision. When you look at the tenyear now and you look at what starts today making up for last month, which is pretty not good. Are rates having an effect on the Housing Market or not . Well, they do have an effect, i think. Of course, Monetary Policy has an effect on those rates. And theres a bit of a conundrum here for the fed as well. The fed tries to use the yield curve and longterm Interest Rates to get that recovery. But it gets the recovery, long rates are going to go up and yields are going to steepen. Theres a balancing act here. And you know, if the markets get ahead of themselves, the fed will start to rein them . Do you think we hit three any time soon . Im not really advanced strategist. Ill leave that to people more qualified to make that call. Before we let you go, tell me where you think the health of the consumer is. Weve gotten reports from major rel tailors who indicate not so great. I think its in good shape, better shape. Theres a healing process going on here. Coming up to the fifth anniversary of the great financial crisis. And economists, dave, will tell you typically it takes ten years to work your way out of major financial crises. So you know, demand, consumer demands building subdued at this point is not something to be too surprised about. But it is healing. Its getting stronger. Thats the basis for the sustainable recovery. Paul, thanks for coming in. Thank you. Dell has reported a 72 drop in Second Quarter profits amid falling pc sales. The company on going battle will continue today, in fact, in court in delaware. But looks very likely to happen. Results for the period still did manage to beat wall street estimates. Going to look at what the numbers were, of course. Dell is running about about 2. 4 billion operating income number for the year. That is if you take the first half and just assume that youre going to do roughly the same number in the second half. Doesnt mean youre going to at all. Continues to fight in the low end of the pc market. Pressures margins. Of course, one of the key reasons why michael dell and silver lake has said this Company Needs to be a private company for us to actually do what needs to be done in order to retool it for the new age, so to speak. Well see. It does look highly likely. Its been nice to have a week or so off not talking about dell after talking eight every day for what seemed like months. But we are going to see some court action today in delaware. Vice chancellor is going to be weighing in on carl icahn and his contention that, hey, you should not be holding the meeting, that is the annual meeting, so far after you hold the vote. They should be con current. That is the we vote on this deal, november 12th. 1388. Also get the eightcent dividend and the voting standard has changed. Everybody knows that. The real question is, whats the business going to look like for them, private or public, given the incredible loss that theyve seen in both market share and profitability. To me that whole line that you always hear about how if you go private you can operate outside the glare of wall street. Thats code for, you can shrink a business that needs to be shrunk. You cant with a Public Company and not pretend you have a growth story. Maybe they wican right side the story. Is the story cutting prices to steal a share . They put pricing pressures on servers, on pcs, things not selling well but they need to move. You had the opposite reaction to the numbers which says does dell have motivation to put up a good quarter or not. I dont even know how the game theory works. Right. And, of course, icahn will tell you theyre simply look making it look as bad as they possibly can. For their part, dell management says we want to maintain these customer relationships and were not going to be beaten on price at this point because we need to move everybody up the value chain but we want to continue to have those relationships in place and not lose them. Well see. Again, theyre still not going to close this thing until october, i think, because theyve still got to get chinese antitrust and so we are still going to have a couple of months to talk about dell and look at the business before it does. Highly likely become a private Company Unless we get a very unexpected ruling today in delaware. We thought the last 13 q was going to be the last. And it turns out it wasnt. It was not. Well see. Meantime, Marissa Meyer is going vogue literally. This ceo of yahoo profiled in vogue magazine and a photo spread. Not only described in the article of a ceo of the moment but also an unusually stylish geek. In the article she hints at her vision of the future. Quote, email, maps, weather, news, stock quotes, share photos, group communications, sports scores, games. Youre listening to what people do on their mobile phones. It sounds like a list of what yahoo does. By the way, the actual book itself, you could workout to this magazine. It is that heavy. I dont know how many ad pages it is. But its very thick. And theres the spread toward the back. I think its a 3,000 word profile, if im not mistaken. Hefty look at some say is this the new standard for pr . Among the modern ceo. You know, i cant i cannot speak to my companys pr strategy but honestly i actually think that most of the attention is incoming. I think its thrust out there. People are interested in somebody her age going from google and taking over, you know, this company that really had been kind of set aside for a while. Dont begrudge somebody in their mid 30s enjoying the spotlight. Shes been working hard. You do have to watch carefully and make sure the pr thing doesnt get too out of land. Kind of like when Hedge Fund Managers starts buying sports teams. You want to open an eye on those things. Im not quite sure what that was about but paulson will tell you, hey, the economics will justify it and theyll make money on the steinway purchase. But the turn around is still going on. Its not as though its done. I know i dont want to put you in a tough position as somebody who works for the company. Interesting though. People, when she came in people thought of her as a product person, not necessarily the showman that shes turned out to be. Offsetting some of that geek quality that she came into the job with. Interesting piece and worth reading. When we come back, is the recent bullishness regarding apple justified . Well talk to the companys former ceo john sculley. And the morning after yesterdays blood letting. And supporters of president morse si calling for more protests today as the death toll passing 700. Jackie there are plenty of things i prefer to do on my own. But when it comes to investing, i just think its better to work with someone. Someone you feel you can really partner with. Unfortunately, ive found that some Brokerage Firms dont always encourage that kind of relationship. Thats why i stopped working at the old brokerage, and started working for charles schwab. Avo what kind of Financial Consultant are you looking for . Talk to us today. Announcer meet mary. She loves tohop online with her debit ca and so does bill, an identity thf who stole marys identity, took over her bank accountand stole her hardearned money. Unfortunately, millions of ericans just like you learn misplaced information to wreak havoc on your life. This is Identity Theft and no one helps stop it better than lifelock. 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It could be those who are against the Muslim Brotherhood and Mohammed Morsi. Not clear of the picture yet but military choppers have been hovering over the area. Right below our position, carl, soldiers have taken up their stance in formation, clearly expecting further escalation. Whats interesting to point out is that various pockets across the capital, make no mistake, its not just here, not just in other town or cities in this country, but also in other pockets of the capital. If you go and a. Mile or less away from here to the other side, there are clashes ongoing there as well. In fact, the whole area has been enshrouded in smoke. Not clear whether there is fire or a mixture of fire and tear gas. But the situation has escalated just shortly a while ago. And again, a chopper right over there. State tv made it clear that Security Forces would use all means necessary to defend public institutions. And remember, the country is in a state of emergency. Protests are banned. And that, of course, when, you know, the escalation that we saw came as a result of these gatherings and the military trying to live up to its word, if you will. There is the prospect of an escalation of violence that will, of course, not worry a lot of people within egypt but a lot of important actors around the world including the United States which just delivered the strongly worded message about 36 hours ago. Now the situation appears to be deteriorating even further. But for the moment, carl, when it comes to the suez canal, no impact on the shipping at least. According to reports, getting a very secure zone. Thus far this has not been a track record of any of those zones being breached. The situation is very difficult, very fluid, and very, very tense. A lot of good information there, yousef. Thank you very much. When we come back, well find out what wall street veteran art cashin has to say about the markets after two days of triple digit losses. 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To experience the precision handling of the lexus performance vehicles, including the gs and allnew is. This is the pursuit of perfection. Were about eight, nine minutes before the opening bell. Lets bring in art cashin, director of floor operations at ubs. It may wind up clouding the opening a little bit. You know, everybody is looking for what is a reaction after yesterdays selloff. In fact, two days. And i think this may cloud it a little bit. I think viewers are probably better served waiting to see the action between 10 00 and noon. Obviously what happens in cairo will be important. Last night going out i heard a lot of people saying they didnt want to take on extra risk, knowing that friday prayers would swell the crowds and so there really is concern about whats going on, specific, i guess, to the canal and to oil prices and then that impact . Primarily the canal and what it may do to Global Transit of shipping. Its an important area. And this has turned a little rougher than people remember. You know, art, you mentioned your piece today that moving in the Precious Metals yesterday and were looking at some there cues like whats happening in the cur