it really started when we heard the official from europe saying perhaps cyprus would be a model for other countries if they have banking problems? >> that's right. when you start it hear that maybe they would seize assets or confiscate money in other countries it putting a little fear and contagion in there. what we saw was the euro dropped to a 4-month low. the lowest level since september 22nd. our markets that were in the green turned into the red. liz: it is around 1.28 at the moment. as we show s&p losers, we should talk about best buy not a loser at all. in fact it is in the green. schultz is returning to the company. >> he will step on as chairman emeritus. it was his baby and he founded the company and he was considering trying to take it private. likes what the company is doing. likes the latest quarter which is a good one and wants to support those initiatives. david: blackberry can't get a leg up. it has a goldman sachs downgrade and the stock suffering as a result. >> citigroup, you can add to them as well. didn't see the sales of the z10 as they helped. liz: dell, we talked about it a minute ago. [closing bell rings] david: there is pop to the upside as the bidding war emerges. liz: there is the nasdaq, national kid any foundation with a lot of kids ringing that bell. of course what do we see, red on the screen. david: red on the screen. you were wearing a reddish color. hoping you would come in green. liz: purple. david: the market did too. one that took the littlest hit, was russell. almost made it way way into the green. they're off the lows but the dow is trending down as we settle towards the end of the day. the s&p is down a little less percentagewise. nasdaq even a little less than that. it is down 9.7. liz: one of the biggest dow loss leaders was bank of america. look at european banks. they're suffering deep drops despite the cyprus bailout. societe generale and royal bank of scotland and pnb paribas suffering big smackdowns. david: oil was a big mover. crude rose 1.2% to $94.81 a barrel. this is the highest settle since february 20th. >> casino stocks, they actually were a bright spot in today's down market, following upbeat remarks from economists in macau's economy. 2013 will look good. melco crown and boyd gaming also a standout. "after the bell" starts right now. david: so here's question, when is it tir moyle actually good for the markets and the economy? well, when it is overseas. renowned professor jeremy siegel telling us why the european crisis could be a win for the u.s. and send the markets soaring to 16,000. liz: protesters are a win for us. we'll fund out more from dr. siegel. we know the feeling standing on the corner waiting for the taxis and being surprised how much that meter ran up while you sat there in the car with traffic. a new company hopes to make that aggravation go away by making taxis obsolete. ceo of sidecar is joining us. david: want to hear about that story coming up. we'll tell you what drove today's markets with today's data download. it is a down day on wall street as investors worry what is next for the eurozone. stocks gave up gains on all three major indices, ending the trading day low. industrials and materials led the decline. well the euro extending its losses against the dollar falling more than 1% to a 4-month low. the dollar following the cyprus's deal to rescue its banking sector. the euro dropped to a session low of 1.28 versus the green back. copper falling the most in four sessions on speculation demand will slow in china as its government takes step to tame inflation. the metal extended last week's decline, dropping to $3.45 a pound. liz: we have phillip in the pits of the cme. a pretty wild day. plus our market panel. john tanglewood and ron weiner. before we get to those two gentlemen, let's start with phillip at the cme. it was an interesting day. at one point we were down nearly 120 points. another we would up 51 points. which side do we end tomorrow? >> real interesting day, liz. i woke up. i saw the news on cyprus. i turn on fox. everything is happy. i thought we would blow to the upside and it would be a great day. the clouds had lifted but it was behind us now. later on as the day developed dutch finance minister coming out saying this problem might not be over. we might assess other euro area banks and might be too large and ask them to restructure or downsize. that starts to get the fears of contagion. that's why you saw the s&p 500 give up its gains, trade off to the lows. you saw the euro currency sell off as well. a little bit of bidding coming into the end of the day. that is just your first quarter, the guys trying to get the window-dressing on. the second thing you have guys that came in, sold short thinking maybe it, it was the top and we're turning around from here. those guys all started to bid up and close out the position at the end not seeing much follow through. that was your action. david: what is the biggest fear here about what happens in europe? is it the fact that the banks there will be decapitalized? or that many of them will actually go the same way the cyprus banks went? >> it is news there is always that possibility that they go there. i mean who wants to wake up one day and realize they're locked out of their bank account and, you're getting a haircut for 20 or 30%. david: phil, the cyprus banks have a unique relationship with greece. they're right there. they have a lot of exposure to greece. aren't any banking institutions in europe with the exception of greek banks that are that exposed to greek companies. >> yeah. the other thing is i read that out of the 370,000 accounts that are in these banks, 360,000 accounts fall under that 100,000 euro mark. so this only affect as very small sliver. those are mainly the russian, you know, bank holders. so those are the people that are affected but there is always the possibility that this becomes exactly what they're saying earlier, a model that is, you know, at least brought onto the table in other eurozone banks and that's what scares people. liz: nobody looked scared today. look at vix, okay, it is up slightly but hovering just below 14? amazing. >> i think that is absolutely amazing. that and also gold not really responding that well either. back and forth most of the day. liz: what does that mean stocks are eli the place to be? >> well, i think that, because the, as long as you stick with u.s. stocks and you look at nice like johnson & johnson, you know, reaching up there to new highs, these companies have a lot of capital on the side. so they have the ability to, you know, make some mergers and acquisitions. also they can weather some of the storms if you do get the selloff. i think that u.s. stocks, unfortunately they are the place to be at the moment but i think that, you know, looking out forward if you do have this type of spread you could see some kind of a movement around into the safety plays. liz: phillip, good to see you. thank you so much. we'll check back in with him in a few minutes. >> thank you. >> sure. david: let's bring in the market panel. john weiner, and john merrill. good to see you, gentlemen. john, first to you, there is still the case there is no place like u.s. equities right now to invest in. one thing it is the only consistently upward mobile index that we have to bet in. secondly you get the dividends from stocks like j&j but you see a change in market leadership that you have pointed out and you think is very significant. that is those sectors leaders are beginning to change shapes somewhat. how is that affecting the market and how should that affect your portfolio? >> i think you have to start with the fact that this bull market, cyclical market is four years old. it had a blastoff stage the first two years which were led by explosive earnings and obviously earnings actually went up higher than market prices. so kept p-e ratios down and it kept valuations intact. but in the last 12 to 18 months you had a little bit of a change. the earnings have slowed down but the market prices continue to go up. that put pressure on p-e ratios which have risen to 18 times trailing earnings which is slightly ahead of its long-term average. valuations are not the cushion that they were. and what you were talking about is true. we're seeing that the leadership of this market during that blastoff stage was led by stocks like apple and sectors like materials but, now, it has changed to the more defensive sectors like health care and, consumer staples. look at today. johnson & johnson. coca-cola, these are bucking the trend going up. and i heard earlier on your broadcast that materials led the way down. so, we're definitely seeing this played out in this different character for this maybe the end of the bull market. liz: so, ron, is four years old old to you for a bull market? does what john just said change your opinion? you've been pretty bullish on stocks? >> well we're bullish on stocks but we think it is a stock-pickers market. it is getting a little stretched it has been four years but hasn't been a typical four years out of a recovery especially as bad as this. i still think there is room to go and part of it will come from the bond market holders. i think they will really get disappointed when they get their statement this is month, next month, probably on going as interest rates probably don't go up whole lot but they're not going down a whole lot, that's for sure. they will get disappointed and look for places to put their money. not necessarily high dividend-paying stocks in our opinion. we think companies that have been increasing their dividends consistently. that is a strong sign that the companies believe in their own growth. that's where we're going for the most part. david: by the way, ron, we heard john talk about apple as part of the past but you think it could be part of the future right now? you're betting on it? >> absolutely. apple's a cheap stock. that's it. they're a cheap stock in a growing sector. so they don't have to beat the pants off of samsung at this level. what they have to do is keep participating in the movement of smartphones, of ipads, of computer, computer mobile computing. and they have got lots of room to go in china. they come out with any kind of catalyst, a cheaper iphone for china, or apple tv, there is so many possible catalysts that will send this stock, maybb back to 500. maybe a little more. we think it is cheap right here. liz: john, i didn't mean to characterize you as bearish but you're out there investing as well, but defensively in what? >> correct. that's the case. we are not bear. we think as the market goes higher we want to take a few chips off the table and posture our portfolio more defensively and sectors like healthcare, we like the vanguard health care etf. symbol vht. we like the energy sector but like to play it defensively also. we like mlp and energy income fund. we're still in emerging markets. we want to be more conservative. we like the matthews asia growth and income fund. we're defensive but doing it more --. david: curious about starbucks, how much further do you think starbucks has to go in this market? >> they have to go a long way. they're first getting in china. they're getting in retail. they're selling their own coffee makers and competing with the k cups. they have lots of room to grow. fine management. they will do fine. david: gentlemen, food to see you. thanks very much. good stuff. liz: thanks, guys. cyprus, we have to attack this in a deeper way. they may have reached a last minute deal to secure much-needed bailout funds but seems as though the damage is done as fears of contagion now spread. maybe italy as well? we're live. david: also could the turmoil in europe actually be good for the united states and our markets? we have someone who says yes, and it could push us straight through to dow 16,000. jeremy siegel is a professor of finance at the wharton school. he has been right on the market before. you don't want to miss what he has to say, coming up. ♪ . 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[ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ all onhinkorswim from td ameritrade. ♪ how old is the oldest person you've known? we gave peoe a sticker and had them show us. we learned a lot of us have known someone who's lived well into their 90s. and that's a great thing. but even though we're living longer, one thing that hasn't changed: the official retirement age. ♪ the question is how do you make sure you have the money you need to enjoy all of these years. ♪ david: the s&p futures are closing right now. let's head back to phillip in the pits of the cme. any indication of what will open at tomorrow, phillip? sound pretty wild? >> well, it is pretty wild. we have a lot of data coming out tomorrow. you have consumer sentiment. durable goods and new home sales. a lot of data coming out. keep an eye on the 1539 level. that is low of s&p. we have break through there. could be selloff continues. david: phillip, thanks very much. good stuff. thank you. >> thank you. liz: let's talk about smithfield foods. it is getting a boost today. nicole is on that story. >> that's right, liz. we watched smithfield foods jumping moving from annual highs to one year highs. based in smithfield, virginia. that is packaged foods and the like. now seems they have secured goldman sachs to explore some strategic about options and that could unlock some shareholder value. talking about the possibility of splitting the company into three separate businesses. that could unlock the value of these shares. you see it close at 26.85. some say it could move the stock to $48 a share. meantime we saw a nice pop, up about 2 1/2% today. as i noted to a new multiyear high. that is the latest on the floor of the new york stock exchange. back to you. david: thanks, nicole. after nail biting weekend, cypress reaching unpopular last minute deal to get a bailout from the eurocrats. this avoids a banking collapse and possible exit from the euro. liz: collapse, hate that word. rich edson in nicosia, cyprus, getting reaction from the people. rich? >> listen, david, mostly right now a sense relief. the banks in this country will be open for the first time more than a week tomorrow morning. except of course for the two banks being bailed out here. you have to imagine like this, in at united states, as if it were lehman brothers. except lehman brothers took deposits, a lot of deposits. one of the two largest banks in the country. for these folks, 100,000 euros or less are protected. there are some corners and senses of anger. we went into a protester. they're trying to get protests in front of the parliament building. perhaps in front. president's residence. when you talk to different folks, difference sense no matter who you speak witt and the results are very much fixed. >> for me the idea is go out of the eurozone. i think, it is enough with this joke. >> why? >> because, there is, i lived this and, with a greek reality, what is happening. everything, every three months and there is, a new plan, of rescuing the country and sinking the people. this is the story. i've seen it in spain. in portugal, in ireland, everywhere. i don't think here it will work. there is no way. >> i believe, difficult days. i believe in the future even with the economic cycles and people understanding all that has happened. i hope so. human few months, few years, the life is better. >> you also have a little bit after walk-back from the eurozone community. the eurozone chairman had said that the bailout here was a model for europe and that other banks should be reduced in size around europe. our own adam sampson found from a eu official that the comments were misunderstood and that cypress is very much a specific case. back to you. liz: rich edson, let's hope so. they always say that. david: let's hope it doesn't spread. thank you, rich. could the u.s. market see a boost following this disorder in europe? coming up jeremy siegel, professor of finance at the wharton school, he is here telling us why money in europe could push the dow straight up to 16,000. liz: a positive out of this. what would boost homeownership but give the economy a bump. there is lot of talk getting rid of the mortgage interest rate deduction. people got all hysterical and upset about it. we have somebody in the business who says it doesn't lie in mortgage rates or prices. it is about, in a way, revising an eliminating eventually the mortgage deduction. if we fix it, we may just fix the housing market he says. have to hear bear by habeeb. david: oh, like barry. ♪ . liz: among the many debates how to help trim spending has been this idea of axing the mortgage interest rate deduction. oh, my god. the mortgage industry freaked out. the lobbyists flipped out of their mind. but our next guest who is part of that industry said axing it in a certain way, call it trimming it would just not only avoid derailing the recovery but a slight modification on the other hand could all we need for healthy house being market and economic boom. joining us now, barry habeeb. everybody i talk to says in the business they love to read your newsletters and listen to what you have to say but you're quite, i can't even believe you're saying this. you're saying trim the mortgage interest rate deduction? >> well, would want to keep it. absolutely want to keep it but we have to see the future before it becomes obvious also, right. the mortgageededuction costs government $100 billion of the year. only 26% take the deduction. you have to think in washington people are talking about it. we know they're talking about it. rather than save some foolish ideas, trim it to 500,000 that is foolish. only 12% of mortgages are over 500,000. liz: anyway. >> how about we fix it. instead of making this like the gift that keeps giving, incentive to buy a emhoe. it creates 20% of the gdp as housing activity. liz: let me interrupt. people say if you get rid of the deduction you will derail the whole housing market. >> it will hurt. give it a five-year life. not five years from today. whenever you take out purchase mortgage. take the deduction for the first five years. that helps with incentive you have to got to purchase the hope. instead of making a gift that keeps giving and having benefit, out last the incentive, after five years, you don't get the deduction anymore. think about it. it will give you incentive to purchase a new home, create more economic activity. we paint ourself in corner with low rates. liz: meanings, let me back up. buy a home. >> yep. liz: get deduction for five years. i really enjoyed that, it's over. if i buy a second home get a new deduction. >> for new five years. liz: how does the government win? people stimulating housing market? >> get benefit of economic activity and don't have the long term deduction for the someone says in home 25 years and gets deduction every year. liz: let me play devil's advocate on the industry side, it will cause a housing slump if you eliminate the gift that keeps on giving. >> glad you asked that. it does the opposite in my opinion. if you look about it, painted ourselves in corner. 3.5, 4% interest rates. we know rates will go up eventually, rates go up 6, 7%, still good, will someone purchase a home and i don't want to give up 3% mortgage to take out one for seven. wait a minute, a have a 3% mortgage after the tax deduction feel like more of a bridge. liz: how do we implement this? how do we say to the lobbyists. this will become what 2 has become, five years done? somebody has to compromise. >> everyone wants to do not in my backyard. it has to be part of a grand plan