bank, their equivalent of ben bernanke gave a speech had morning and they said their economic growth is slowing, and traders took it as a note to say things are more serious than we thought. you combine that with the fact that the japanese central bank intervened to prop the yen up, and there's a fear that everybody is doing badly and nobody is there to pick up the slack. basically is that what is happening. money is coming out of the stocks. when you see that happening, it comes out of commodities or gold. people are taking their money out of the stock market and gold, and oil, and this is the jitters of people taking their money out and putting it in their mattresses. >> and let's bring in the assistant editor of a financial magazine. a drop in two weeks, and why is the fear taking hold right now? >> i think a lot of it today is what ali said, the turmoil in europe that is suddenly worse than we thought. there was a feeling the ecb was going to rescue things and that went up in the air and the market is so jittery, there's a lot of reaction and overreaction. the whole turmoil over the debt ceiling affected the markets late in the game. it didn't really start to show until just a few days before the deadline, but boy did it show as soon as it did. at the same time it was a one-two punch. we had bad economic data that game out. gdp for the second quarter was low, and the first quarter was resized downward. we had poor auto sales figures. so across almost all segments and all of the economic indicators that we look at, we're getting revisions downward and pretty gloomy news. the markets are already so jittery, you know, it is just piling on top of that already. >> usually, what happens is generally investors are sophisticated enough that this is not doing well enough so i will put my money here, and what is happening right now, there is so much uncertainty -- let's not read this to mean everything is bad, but there is so much uncertainty as to where the next shoe will drop, people are taking their money they would normally shift into other piles, and they are taking it out. there's a lot of cash piling up. companies have been doing this for the last couple years and now you are seeing global investors doing it. we should caution, this doesn't necessarily mean something bad is happening. it means investors -- smart investors, global investors, they do not know where the logical place to put money is at this point. would you say that's a fair way to put it? >> yeah, i think that's a good way to put it. you never want to make an emotional move. the institutional investor are trying to figure out where the safe watermark is. don't forget. we thought we were going to have a relief rally after the debt ceiling was solved. that doesn't happen and things are out of whack. >> is this correction territory? >> yeah, it is. every single day for the last five or six days we have seen the market do something other than what it did in the morning. we're not expecting the jobs report for july to be good. i would not expect this big of a reaction to that. yesterday we had a rough market if you recall, and when you were on air, late afternoon, things started to turn around. and the market turned upward. there are investors sitting around and thinking let's see where it goes and then i will get in. go back to 2008 and 2009, these are what the markets are looking like. a lot of volume and tall tivola. >> what is your advice to those sitting at home? for retirement investors, you sit tight and don't panic, and does that still hold now? >> that always holds in a crisis. when you think of the people that pulled their money out in 2008, they missed a huge rally. if you talk about making dramatic changes, you have to be right twice, at the very moment you pull it ourt, and when you put it back in otherwise you risk big losses. as hard as it is, it's always just a sit on your hands, and don't do anything drastic. >> ali, you mentioned the jobs report coming out tomorrow. what is your gut on that? >> the consensus is that we created 75,000 jobs in july, and there's nothing that suggests that, where people are hiring, and we are seeing more laying off in terms of announcements than hiring. i don't expect it would be better than that. it's not good enough, but it will be what it is. one of the reasons we focus on this is because we have the screen for the dow. the bigger activity today is going on in bond markets, and look at that percentage number. it's off 2.5%. that's a lot for a day. let's keep it in perspective. it's a jittery market and there may be buying opportunities and a lot of companies making money, particularly those that make money on global consumers. we have been reporting on the earnings every day. hopefully that will offset the jobs report, but pay attention tomorrow morning at 8:30 eastern. >> we will. we will continue to watch the markets and check back with both of you in 55 minutes or so. thank you both. we will continue to monitor the situation unfolding at virginia tech right now. the campus remains under lockdown. people are still being told to stay indoors after summer camp students reported seeing a man with what could have been a handgun. that was around 9:00 a.m. this morning. police held a press conference a short time ago to say so far there have not been anybody matching the description that students gave them. when we have an update we will bring it to you. a missouri law bans teachers with becoming friends with students on facebook. on the red hills of georgia, the sons of former slaves and the sons of former slave owners will be able to sit down together at the table of brotherhood. i have a dream today! 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[ male announcer ] want to pump up your gas mileage? come to meineke for our free fuel-efficiency check and you'll say...my money. my choice. my meineke. a new missouri bill bands friendships between teachers and students. the law was created to prevent inappropriate relationships. critics denounced the measure as a violation of freedom of speech and removes an educational tool. the sponsor of the bill, jane cunningham, he joins me from st. louis. and joining us from the phone, randy turner, he opposed the bill. why did you think that this bill was necessary? >> because the ap did -- the association press did a national investigation several years ago revealing that there was six times more prevalent than the priest hood scandal sexual misconduct among teachers in our public schools. and in missouri, we found that missouri is the 11th worth state in the nation for educators losing their license for sexual misconduct. it has become prevalent enough that our department of educational officials call it passinging of trash meaning educators moving from one district to another because it's not disclosed what they were dismissed for. >> tell us what type of friendships are approved here by the bill? >> all of them. that was not correct information that you gave. in fact, the actual language of the bill says that we do not prohibit those types of inner actions on facebook or any other social networking, the only thing the bill prohibits is in there is hidden communication between a educator and student, and we want to make it appropriate for third parties can monitor it. >> how can you make sure it's always monitored? >> that's up to the local school districts. we're allowing local school districts to make their own policy and decide with their own personnel what makes best for them and how they monitor and police it. >> i want to bring in the eighth grade teacher i mentioned a moment ago. mr. turner, how do you feel about the bill? >> it's a poorly written bill, at least the part of the bill that concerns facebook. there is much of the bill that i do not have a problem with. i don't see stronger sanctions against passing the tras. i think that's important. and it's important for every school district to come up with a policy regarding social networking. but what i see with this wording in the facebook part of the bill, i see it as kind of demonizing public teachers, public school teachers and saying that students need to be on the lookout for them, and the sad thing is i don't see how this bill, that part of it, actually protects anyone. if you think about it, any teacher -- and believe me, good classroom teachers want these people out of the classrooms as much as -- more than anybody else, because they bring shame on our whole profession. if a teacher is going to cross the line and have an illegal relationship with a teenager, with a minor or child, why would this teacher follow this law? the only people who would be having to change the way the do things and be willing to do things are ones that are law abiding teachers. >> would you say it might be a violation of freedom of speech as others suggested? >> no, because -- the bill by the way, does not mention the word "facebook", and we do not deny any communication and it's appropriate so third parties can monitor it. >> does it target teachers? >> i don't believe so. i would say, no, it doesn't, because we have found problems with teachers, counsellors, and coachers and superintendents, and they have all lost their licenses of those who have been found guilty. so i don't think, no, it doesn't. we're trying to find perpetrators no matter where they are in the school personnel. >> a lot of people communicate on facebook. what does it mean between teachers and students? >> what worries me. there are a lot of things we will still be able to do, if i am understanding the rulings here. we would still be able to have what we call fan pages where communication can be on the wall, and everybody will be able to see it. there's no problem with that on most things. but when you have a student who has a problem, or a student who is even having trouble working on an assignment, that student often times is not going to want to reveal to the whole world that he or she is having a problem with the assignment. if i could mention something -- >> just very quickly. >> she mentioned the bill does not mention facebook, no, but one of the reasons why people called it the facebook bill is it's obviously the most permanent social networking site now and being used effectively, and in a good educational manner by teachers all over the state of missouri. >> all right. senator -- >> and we encourage that aproposeutness to continue. and will tiger woods be the superstar of old or have injuries done him in? 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[ cheering ] >> reporter: like i say, love him or hate him, he is fantastic for the game of golf. the pga is very pleased he is back here and competing after having to take a bit of a break. in may he walked off the course with physical problems, and now he says physically he is ready to go. we will see how he does this weekend and from here on out. >> i am curious and i am sure a lot of folks are curious about how he will do with his new caddie as well? >> steve williams was his caddie for 12 years, and we don't know the details but something happened between them and their relationship broke down. tiger fired williams, and that is absolutely another level of drama here, because williams is working for another golfer, and he will be out here, so they will be face-to-face. they are teeing off near the same time today. so another layer of drama with the whole tiger woods saga, and we have rory who won the u.s. open, and he is here as well. big crowds here and bigger ratings this weekend if tiger does well. the folks at the pga and cbs are pleased tiger is back. >> any sense on how the players feel about his return? >> reporter: they are happy, because they like what he brings to the game of golf. you bring tiger into the mix, especially with what he has been through in the past couple of years, and you have nongolf fans tuning into watch. the players get that, and whether or not they like playing against him is another thing, but they understand he brings something to the game. >> let us know how he does. thank you. >> reporter: you got it. tropical storm emily made landfall in haiti where thousands are still living in temporary housing. ♪ this is our pool. ♪ our fireworks. ♪ and our slip and slide. you have your idea of summer fun, and we have ours. now during the summer event get an exceptionally engineered mercedes-benz for an exceptional price. but hurry, this offer ends august 31st. when i got my medicare card, i realized i needed an aarp... medicare supplement insurance card, too. medicare is one of the great things about turning 65, but it doesn't cover everything. in fact, it only pays up to 80% of your part b expenses. if you're already on or eligible for medicare, call now to find out how an aarp... medicare supplement insurance plan, insured by unitedhealthcare insurance company, helps cover some of the medical expenses... not paid by medicare part b. that can save you from paying up to thousands of dollars... out of your own pocket. these are the only medicare supplement insurance plans... exclusively endorsed by aarp. when you call now, you'll get this free information kit... with all you need to enroll. put their trust in aarp medicare supplement insurance. plus you'll get this free guide to understanding medicare. the prices are competitive. i can keep my own doctor. and i don't need a referral to see a specialist. call now to get a free information kit. plus you'll get this free guide to understanding medicare. and the advantages don't end there. choose from a range of medicare supplement plans... that are all competitively priced. we have a plan for almost everyone, so you can find one that fits your needs and budget. with all medicare supplement plans, there are virtually no claim forms to fill out. plus you can keep your own doctor and hospital that accepts medicare. and best of all, these plans are... the only medicare supplement plans endorsed by aarp. when they told me these plans were endorsed by aarp... i had only one thing to say... sign me up. t insurance plan. you'll get this free information kit... and guide to understanding medicare, to help you choose the plan that's right for you. as with all medicare supplement plans, you can keep your own doctor and hospital that accepts medicare, get help paying for what medicare doesn't... and save up to thousands of dollars. call this toll-free number now. we are keeping a close watch on haiti this hour. probably the least equipped place in the nation for this. e-ma hundreds of thousands of people are still in tents after last year's earthquake. joining me on the telephone now from the haitian capital, a local filmmaker that helped us to cover the earthquake and now is watching emily. how is the weather in port-au-prince right now? >> right now, so far so good. quiet. today has been declared a national holiday, or a holiday to keep people at home. and the streets are quiet. it's not raining yet. it's cloudy, so so far so good. >> are people taking precautions? is there a sense of panic or calm there? >> right now, calm. [ inaudible ] people went to stock up on food and water and nothing has happened. it's 12:25 local time and it's fairly quiet. >> the question is when will emily show herself on u.s. shores. meteorologist, chad meyers, tracking the tropical storm from the severe weather center. chad, what do you see? >> it may not hit the u.s. at all, and it may travel along the florida coastline for hours and hours. and still all the scenarios still within the cone. the storm right there. that's the center of what is emily. 50 miles per hour, and what we are worried about for today, all of this wind as it comes around the storm will come in to port-au-prince from the north. there is a huge mountain chain there. the rain will pileup on the mountain, and then all of a sudden it will start to run downhill. remember, they cut down most of the trees in haiti and used it for charcoal and cooking. and so when you start to see that, you will also see mudslides happening at the same time. here is what it looks like here. this is what the radar should look like. and the computer can look at the satellite and say what are the big thick clouds. the clouds getting into port-au-prince, and then eventually running into the bahamas. i know it's hard to see, but somewhere in there is where the forecast center would be as it gets close to the u.s. for now, at least, there is not a u.s. landfall, although it will be very close because the u.s. is still well within the cone, that cone all the way from the keys all the way to the east of the bahamas. the rain will be heavy in haiti and heavy in port-au-prince and then in the dr, and then that's quantanamo right there, and then a turn to the right. if it doesn't turn in time, it hits miami, and if it turns early it doesn't come anywhere near us, and it could degrade the coast for 70-mile-per-hour winds for miles and miles, and that's where the most damage could be from ft. lauderdale and into cape canaveral. all of that still two days away. just a reminder, we are expecting a press conference from virginia, a virginia tech press conference, actually. that should be coming up in a few minutes. that's because students this morning there attending a camp there at virginia tech said they saw a white male with a gun covered with a cloth. as you know, that is the site of the 2008 shooting massacre. the campus was in lockdown, and they will talk about if they had any luck finding a suspect. the eagle flies at dawn. the monkey eats custard. price-line ne-go-ti-a-tor. so, you've been double crossed by other travel sites and now you want to try the real deal. yes, is it true that name your own price... ...got even easier? affirmative. we'll show you other people's winning hotel bids. so i'll know how much to bid... ...and save up to 60% i'm in i know the lady in leather travels on three wheels. wait, is that code? that's my secret weapon... ...naomi