These people turn to washington and try to see the Federal Reserve whether or not they would begin to taper the bond buying. We will get to some movers in a moment, couple of things, the 10year, and gold just spiked moments ago up 26. Keep an eye on gold. I wanted to take a look at walmart and cisco with two down components. Cisco systems carbon 5 of their global workforce. Back to you. Ashley thank you very much. Lori a reflection of the cpi, shows a little inflation in the system. Lets talk about the data they lose. The latest reading on the fed installment is the and Atlantic Region slow down more than expected in august. The news isnt much better in the new york area. Edging up 0. 2 in line with estimates. A bit of good news. Initial jobless claims fell more than expected to be lowest level in six years, so the best levels since the end of the recession. Does that mean a september tapering is more likely . Wells fargo senior economist. We have a stock selloff and a bond selling off. The market must be bracing for tapering, correct . They pretty much baked it in. Nothing that would tell the fed no, we will not do it just now. Lori lets break down the Economic Data piece by piece. 320,000, what does that say to you . Fewer layoffs, overall Unemployment Rate closer to 7 . Give me your take. Might take in all is that clearly we are seeing less bad news. A whole lot better if we would see more good news. Less bad news in the jobless claims. We are not seeing as many layoffs. Might have to do with the timing of automobile shutdowns. We will see a pickup in jobless claims in the next three weeks, but they are still low. Most draft to implement rate have come about because fewer people lost their jobs. We had not seen a drop in the Unemployment Rate from people who have reentered the workforce being able to find jobs. That is what is missing right now. Lori it just makes you question if we see the exiting of federal stimulus in the tapering of bond purchases. You have an overall growth pace of 2 , we have had so many years of the Monetary Policy, what does that say about the effectiveness of the fed policy and what will happen when it is ultimately removed . At some point you have to take the training wheels off. Theyre going to fall, stumble. Sometimes the skin needs a blessing. I am not worried about the market having rough days adjusting to this. Next line i measure taken by the fed. Even after they stopped at insecurities to the portfolio, Monetary Policy remains very easy how much easier than it typically does. Easterday moves the fed makes from ordinary Monetary Policy moves. Lori we have grown almost addicted to this stimulus paired would you favor ripping off the bandaid . Since the talk back in may of doing just that cause all kinds of ruffling in the stock and bond market. They going to keep applying neosporin for at least the next six to nine months where they will gradually reduce the securities purchases. That is a good thing. We have to get off our dependency of the fed coming in at such artificially low levels. The market has to correct the underlining fundamentals which are improving, but still not where you would like them to be. Lori thank you, sir, we will see you very soon. Ashley following the smart money, new insight into Warren Buffett investing strategy and a filing with the as a sec. And new stake in this network. The oracle of omaha sharply reducing the shares of kraft foods. 192,666 shares roughly. Kraft foods shares as of june 30 by the way 88 from the reported holdings as of march 31. Cut by 92 , making no changes in the holdings of wells fargo, American Express and cocacola. Many followed Berkshire Hathaway and Warren Buffett move. Lori down once again below 200 points. We have our eyes closely on the market off 209 points today. If the market is bracing area di. It looks like were in this climate now. Gold going, going, gone. Not as appealing as it was last quarter. There are slashing their holdings in the asset so what prompted this move . Elizabeth macdonald has the bottom line. Wasnt he recommending holding them back on and gold last month . Confidence in gold is being rattled. They use it as a hedge against the dollar against currency debasement. It is names like david einhorn, cutting their gold holdings. We see them dumping out of spider gold trust. What were seeing is essentially hitting levels we have not seen since february of 2009 off by 32 , so what Wells Capital trust advisors are saying is this is the armageddon premium coming off of gold, probably into september. The biggest annual loss since 1997 but it is spiking higher today. What were seeing in the difference in paper gold trade versus demand for actual gold is up. The Council Report seeing demand still going like gangbusters in china, the middle east and turkey up double digits. Seasonal demand coming in going into the fall for gold. Two different storylines going on with gold. Ashley goldmining stocks have done very well, but overall people are little bearish on gold up 25. On a inflation play. To have been buying gold for 10 straight quarters. Watch out for the pendants putting a floor under gold. Hsbc saying 1500 or so last spring. Were they off big time. Cnbc reporting on their network. We have tried to be very cautious about telling anybody what the floor in gold is, at least i have been, you cannot put a floor on gold right now. Even the Big Hedge Fund guys are moving in and out of it. Ashley thank you. Turning to oil, this rising for the fifth straight day. Fox news contributor in the trading pits of the cme. No doubt the crisis in egypt providing some support for crude, right . Even when were talking about the increase of the tapering pushing gold down a little bit, it did not keep it down there. It is not just egypt they have to worry about, they have to worry about a lot of Tropical Storm activity that may or may not impact production. What we do know is at this time it is impacting some of the platforms in the gulf. Lot of platforms being evacuated because of this lowpressure system that is right now in the mexican area going into the gulf of mexico into the bay overland. That is also impaired in gold. Another Tropical Storm that could end up toward the gulf at least around the gulf next week. Back to you. Ashley thank you so much. Lori breaking news, the latest on the crash that killed two people near birmingham alabama. Officials on the ground have recovered the black boxes on the wreckage, so they will be analyzed as early as today according to the ntsb. Ashley triple digit losses on the dow, Charles Payne on the pullback coming up next. 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You had in the conspiracy theories, and whole bunch of things, that we do know next month it will be pretty interesting. What happens with the lawmakers, the debt ceiling battle, the battle to remove obamacare, continuing resolution and the main point, we were promised in the first half of the year that the second half would be better. We gave them a free pass on a few things. You miss and revenues, you beat by a penny. Using the second half will be better, and now the same kind of confidence. The very end of my Morning Report i wrote did not panic. I will admit over the last week we have been selling a lot of positions. Ashley trading tends to make these big moves exaggerated. Charles there is no leadershi. It is a problem. What becomes leadership into the next month other than the market pulling back to where people want to buy it. Ashley could we see some people jumping back in or not . Charles i dont think so. I think for the last hour of trading is the most exciting o our, to be amazing if we rallied in this because i dont see what the leadership is coming from. Having said that, dont panic either. Lori lets go down to the New York Stock Exchange with Nicole Petallides on the floor because not everything is down on wall street today. Nicole that is absolutely right. To the point of what we have been seeing. Breaking through the 50 Day Moving Average and someday technically you may start to see some programs go in and one example would be looking at a note this morning as we broke the moving average in june it turned into a negative 350 points they. Thats to say that will happen today but sometimes that does happen. Here are a couple of winners for you. Looking at kohls and dillards, two names we know so well. Up basically 7 today. When you talk about kohls, they are doing better. Same deal, looking pretty good. These retailers with walmart, macys a bit lower today. Back to you. Lori many thanks. Ashley confidence hitting the highest level in almost eight years. National association of homebuilders, wells fargo Housing Market index rose to 59 august as a reading of 55 was expected, so anything over 50 is considered good. This is the fourth rise in a row coming next takes into account current and prospective sales conditions. Trading in the green today. Getting a 52week high. The spike in the 10year yield borrowing and cost going higher. Are the consumers confident and can they afford getting into the Housing Market . Lori we shall see. Some said it is baked in, but still enough positions. It is interesting to see the stocks and bonds down, yields pushing up as well. The safety of bonds, that is not with the money is headed. Chaos in egypt is intensify more than 500 people are dead now and clashes as the Muslim Brotherhood vows not to back down. Ashley kt mcfarland is here next. President obama warns the traditional cooperation with egypt cannot continue as usual. 32 talking about gold popping as usual. It is much weaker against all of the Major Trading partners. The euro pushing at 1. 331 versus the greenback. We are back after a short break. Right now, 7 years of music is being streamed. A quarter million tweeters are tweeting. And 900 Million Dollars are changing hands online. Thats why hp built a new kind of server. One thats 80 smaller. Uses 89 less energy. And costs 77 less. Its called hp moonshot. And its giving the internet the room it needs to grow. This is gonna be big. Hp moonshot. Its time to build a better enterprise. Together. You are gonna need a wingman. And with my cash back, you are mone forget him. My Airline Miles will take your game worldwide. What im really looking for is i got two words for you rewards. Theres got to be better cards than this. [ male announcer ] theres a better way with creditcards. Com. Compare hundreds of cards from all the major banks to find the one thats right for you. Its simple. Search, compare, and apply at creditcards. Com. First rounds on me. And this park is the inside of your body. See, the special psyllium fir in metamucil actually gels to trap some carbs to help maintain healthy blood sugar levels. Metamucil. 3 amazing benefits in 1 super fiber. Lori protests and violence between police and protesters bring egypt and its economy to a standstill, even worse than ever. As the death toll continues to rise. Standing by with the latest. Boy, do six weeks make a huge difference. Remember when the coup happened in july the market rallied, optimism of the economy. Today the General Motors world dodge and shell limiting the shortlist, the exchanges are closed and banks are close at well until sunday because of the violence that is now rocking egypt. There was either the calm after the storm or the calm before the storms people took note to bury the 500 people who died, but the rhetoric has not cool down at all. The Muslim Brotherhood must return to their mosque and get off the streets at the same time the Muslim Brotherhood said they are not leaving with our blood, our soul, we defend islams latest chant setting of a very violent confrontation over the next couple of days. The thing to watch in egypt will be tomorrow, friday, noon after prayers to see if he will return to the streets and we have the running gun battles we have seen over the past 2448 hours were of the army had left leadership to really get a stranglehold on the situation there especially in cairo tr trying to keep the z canal open. Ashley president obama condemning the violence in egypt in a statement earlier today. President obama United States strongly condemns the steps that have been taken by egypts interim government and security forces. We deplore violence against civilians. We support universal rights essential to human dignity. Including the right to peaceful protest. Ashley is more what is at stake, were joined by Fox News Contributor kt mcfarland. Great to have you. We hear from president obama gi his goal to give a statement on this. What is our Administration View toward egypt . What can the white house do . Accu sort of switching. Two years ago we should have used our seat at the table. It is a open up, include other groups in our government. We didnt, so then there is an overthrow. And the Muslim Brotherhood takes over. Now here we are, we are now back in a military like government not clear what influence we are using. Lori there is no economy, no jobs, people are absolutely starving and this is the crux of the crisis going on. You are absolutely right and it is a vicious circle. Companies are pulling out, there is no tourism money, no foreign investment. Without political stability there is no economic stability, no Economic Growth so the people are back in the streets saying we are hungry, were angry. His sort of goes around and around. Egypt is a country where 30 of the people dont have anything to eat unless the government hands them bread. Ashley u. S. Provides a lot of help especially for the military, polic we threatened td back aid if the generals continue to shoot their own citizens . What we want is stability. We have a seat at the table but the saudis, kuwait, they have a bigger seat because they wrote a check for 12 billion to feed the egyptian people. The problem 20 years ago they were the worlds breadbasket and going back to biblical times. They chose not to grow weed and instead grew cotton. They were going to imported and sell the cotton. What happens to the price . The price has gone down, price of wheat has gone up. Lori to describe the situation in egypt tragically as a vicious cycle, how do you see it happening . The Muslim Brotherhood are on their heels now. Military government to cognitive whisacalculated risk. They wanted a crackdown. If the crackdown provides that stability fully cycle can can start economic stability, people can come back, et cetera. That is what they took and that is probably worth it. More and more violence comedically watching the be watching the very early stages of a war that could go on for a decade. We could have in egypt what we see in syria. Ashley the best scenario is for them to get back to the polled have democratically elected, but what is just to the person who wins follows the same path, were going to be back where we started. We could see revolution and counterrevolution and every time the cycle goes down and down. What is interesting over talks about his on tuesday the interim government reappointed the governors, 19 to 25 are now generals. Lori you have civil war in syria, the turmoil in egypt situation. Middle east peace talks are going on in jerusalem now. Do you think we could see some positive movement on that front from the palestinians . I had to go there, why not. It is like the roof is falling in, what does john kerry decide . Lets build a swimming pool. Lori thank you so much. Turning back to the market, major selloff on the street, the dow down 223 points. That puts the dow on track for the steepest decline in about two months. Ashley new consumer concerns the Worlds Largest retailer cut the profit on revenue outlook. The analyst take on that coming up next. The boys used double miles from their capital o