moves for the dow. it won't happen today, as we finish up what has been a crazy week. and the worst week for the dow since last year's election in november. that's the first hour of the "closing bell." thank you so much for joining us. have a wonderful weekend. enjoy the first few days of summer. here's the second hour of "closing bell" with maria bartiromo. >> and it is 4:00 on wall street. do you know where your money is? hi, everybody. welcome back to the "closing bell." a busy afternoon on the floor of the new york stock exchange. i'm maria bartiromo, as we end with, as you guessed it, another wild trading day. looking at how we're settling out. we're finishing mixed and off the best levels of the afternoon. there was real nervousness. we had an expiration in the morning. that created heavy volume, and that's what we're seeing at the close here again. the dow jones industrials up 45 points, cutting a bigger gain about in half by the close. nasdaq has been negative for much of the day.

oracle oracle the biggest problem, still under pressure. s&p 500 finishes higher, although it gives up much of an earlier rally, up 4.50 at the end. oracle was the worst performing s&p 500 stock today. it was the worst performer. and that certainly dragged down the averages. bob, everybody on this floor has to feel like, hey, it's tgif after a week like this. >> and everybody wanted last night a fairly quiet day. and the fireworks were all at the open. we are a quadruple witching expiration. huge volume. this is one of the biggest volume days. we'll do 5 billion easily. moved to the downside and then turned around. a narrower trading range. 150, 160 points on the dow. we've been doing 200, 300-point trading ranges. interest rate sensitive stocks, rolling through a couple of sectors. a horrible week, but a nice bounce-back. utility, reits, telecom stocks, all up a little bit on -- telecom moving up fractionally.

emerging markets, some of them down 15%, 16% in the last couple of weeks. thailand, south africa, india, turkey, all bounced nicely today. i got a lot of questions about the financials. and i had a very simple interpretation of them. the big money were down, the regional all up. it looked to me rotation going into regionals, banks, high rates. the yield curve steepening helps the margins for some of the regional banks. we have a s&p rebalancing at the close here. it looks quiet. a couple of stocks, pfizer, for example, and at&t. both decreasing in their weighting in the stock, pfizer because of m&a, at&t because of buybacks. it looks like maybe pfizer hasn't quite settled down yet. but again, no big price moves on either one of them. for the week, it wasn't very pretty. the dow jones industrials average down about 2%. most of the other indices down as well. i would note, maria, the dow transports down 3.4%, a big cyclical name, a little bit of a

warning. have a great weekend. >> have a great weekend, bob. thank you very much. more next week. another volatile day in the markets today. we want to break it down with our panel of experts. rob joining us, rebecca, stephanie from the street.com. good to see everybody. thank you so much for joining us. ralph, you are the man of the moment to speak to. you were right and have been right on this market in terms of being bullish. however, we've seen some real volatility. do you want to stay on the sidelines here, or would you be putting money to work after the week that was? >> well, when i was on your show last week, maria, i was showing a little bit of concern about the volatility. a lot of failed rallies. and we did enough damage this week -- technical damage -- to suggest that this correction is not over. but i am by no means bearish longer term. in fact, i have welcoming this decline. but i just want to caution everyone, i think we're going to have a pretty volatile summer. >> why, ralph? give me some of the metrics that you look at to lead you to

believe that this correction has more selling to come? >> well, you know, very -- from a very, very technical point of view -- and i hate to get too technical -- but the 50-day moving averages, which we all look at, and had held the market to about a 5% correction. well, most of those short-term moving averages were broken this week, and the likely target on the downside is the 200-day. and if you take it from top to bottom, you're talking about at least a 10% correction. i combine that with the fact that my -- one of my favorite combinations, the dow jones industrials, and the doul transports, the dow transports did very, very poorly. even today, it broke down. so there's real reason to see more consolidation -- more consolidation and volatility for a while. >> all right. so you're expecting the selling is going to continue.

stephanie, rebecca, what are your thoughts on this? >> i think the bond market will dictate what stocks -- and it has been happening, right, over the last couple of weeks. if bonds can stabilize, i think the market can stabilize. but it all depends on how quickly -- how much higher do short-term yields go? is it going to be gradual? if that's gradual, i think the market can handle that. that would suggest that the economy's doing better. if we continue to escalate a lot higher, like we have been -- i mean, we're up 87 bips on the 10-year in a month and a halftime. if we continue with that pace, that's what will cause the volatility, i think you want to use the volatility to pick out long-term themes -- in housing, aerospace, the industrials, and even start to look at the defensive stocks as they come down. >> rebecca, part of the issue for the markets has been currencies, has been credit, obviously. i mean, the dollar soaring against all currencies, right? euro, brazil, across the board. >> i think the dollar is likely

to stay strong. the u.s. interest rate trend, i think, is going to be with us for a while. maybe not 30 years like falling interest rates were. but it could be for a couple of years. and so, if we're in that environment where you have rising interest rates, a stronger dollar, weaker commodity prices, when you think about the u.s. stocks you want to own, you want to think about names that are going to do well in a strong dollar, weak commodity environment. there are plenty to choose from. i think even when the tide is finished going out on emerging markets, they're not all the same. there are great opportunities that i think we're going to see over the course of the summer. just think about it. if the fed's raising rates because the economy's doing better, well, that should be good for economies linked to the u.s. mexico is getting trashed right now. >> right. >> it was a very crowded position. at some point, though, i think that's going to be a great opportunity. >> yeah. and there's growth there. that's the bottom line. >> yes. >> even when you look at some of the other latin american or regional areas there, like brazil, come way down from the growth levels and the peaks. yeah, maybe mexico is the one to look for safety. >> right.

>> ralph, what's your take on the emerging markets part of this story? i know you have been a usa guy. you want to put your money in america. and that's been right. you know, emerging markets have seen enormous outflows. bond funds have seen enormous outflows. what's your take on those two areas? >> i call them not emerging markets. i call them submerging markets. >> yeah, exactly. >> i think they're going to go appreciably lower, maria. it's not over for them. >> people getting their statements from the bond funds, the bond etfs, bond funds, think it's a safe investment, but they lost money. $38 billion coming out this month, in june. >> yeah. there's been so much commentary on that for the past six months to a year. i don't think it should come as any surprise. you know what? i roll my eyes when i hear some people commentary talking about, well, mortgages are going to go

to 4% and that'll kill the housing market. maria, i bought an apartment 20 years ago. i paid 9% mortgage. i mean, i don't -- >> wow. >> -- think that's the end of the building problem. >> right. i think he's making a great point, is that in the very near term, at least, the market's going to try to understand, can the economy handle higher interest rates? >> right. >> so we're going to be looking at things we don't normally care about. the weekly mortgage applications, and everyone will try to probably read more into it than they should to try to see is the real economy being hit by higher rates or can we withstand it? that will keep the volatility higher for a while. >> and the fed basically told you that their policy will be data-dependent. >> right. >> so now we're all data-dependent, right? so now we'll all be looking at housing, at consumer. i think importantly, manufacturing, because that's been the one part of the economy in the u.s. that hasn't recovered. and that's a big -- that's 12% of gdp. that has to start to recover. >> yeah. >> and i think it's very exposed to the global environment as well. so that is a big component to

it. >> what are the areas that you want to be exposed to as rates go higher? >> financials for sure. and if you notice over the last couple of days, the regionals have outperformed the money-center banks, because they're more exposed to the higher yield curve, right? the steeper yield curve. i think industrials, too, believe it or not is a nice correlation between higher rates and industrials because it's -- the growth is inclined to improve, and they would do better. i think the consumer's held in well, and it's tied to housing and better jobs. >> ralph, what about that? you said that there's probably more selling to come. we've had a 5% correction. maybe we do another 5% on the downside. is there anywhere to hide while this market is going down in the foreseeable future? >> well, as you know, i've been bullish for almost four, four and a half years. and the positions that i've been telling people to be in, i wouldn't -- i wouldn't sell them. you know, stephanie was talking

about financials and industrials. they're great stocks. so i wouldn't be selling them. i think if you are nervous about utilities -- and rightly so -- i would keep my powder dry. i think they go a little lower, and then maybe utilities and telecommunications would be great buying opportunities. >> and when you look at this market, for it to go lower, as you say you don't think the correction is over, what do you think the groups that will be driving it? is it across the board, the dividend payers that have been the leaders, or the cyclicals tied to the economy? >> yeah, well, you asked that same question last week. and i try to avoid it a little bit. while you're in the decline, you really can't tell where the leadership and the laggers will be. but so far, it's been the interest-sensitive stocks that have came under the biggest pressure. i think the ones that will do well are the ones that are holding up relatively well. again, it's financials.

i like technology. i like industrials. i think that's where we're going to see the new merging leadership, as we go through this corrective phase. and remember one thing, maria. in the secular bull market, you need shakeouts like this. to get the shift in leaderships. i think long term this is very, very healthy. >> all right. we'll leave it there. thanks, ralph, stephanie, rebecca. good to see everybody. have a fantastic weekend after what has been a really busy week. what is an investor to do in the middle of all of this volatility? i'll be talking with john calamos, manages about $30 billion. and he said the market is overreacting to the fed. we'll find out how he is allocating capital. and don't miss my interview with the ceo of paribas north america. that and more coming up on "closing bell." [ male announcer ] when gloria and her financial advisor made a retirement plan, they considered all her assets, even those held elsewhere, giving her the confidence to pursue all her goals. when you want a financial advisor

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welcome back. stocks had a slightly calmer day after a very wild last two sessions, which saw the dow fall a combined 560 points in the last two days. our next guest, though, manages nearly $30 billion and says all of that was an overreaction to the fed and the talk of tapering. joining me now to explain why is cnbc exclusive, john calamos,

ceo and global coach, chief investment officer at calamos investments. john, always wonderful to have you on the program. >> good to be with you. >> tell me why you think the market overreacted. >> well, i think we're actually still quite optimistic going forward here. we're surely going to be in a correction, but quite frankly, i think what the fed has done here, hopefully it takes the control of the economy from the fed to the free markets. and i'm sort of in the camp here where a rise in the 10-year rate here is not -- is not so much a negative. it very well could be a positive. i think the financial sector will provide more loans out there, and, of course, more loans in the financial sector will help small business. and helping small business creates jobs. so i'm a bit more optimistic out here. even though we're going to have

a sloppy market, a sideways market for a while in here. >> so sloppy market. do you look at that sloppy market and say, okay, i want to put money to work here, because longer term, i think this market's going to higher? and if so, where? >> yeah. i think that's exactly what we -- i think we're going to go through a sideways market. and what we may very well happen in here, we'll see a rotation out of some of the more what i would call income-oriented stocks, almost bond surrogates, into more growthy areas like technology and other areas like that. so what we'll find here is we'll -- the market may be sloppy coming in here, but we'll see that sector rotation occur in here, and then looking further out, you know, those will be the places to be. that's where we're going to get performance looking further out. >> all right. let's talk about the allocation and the shift in terms of

sectors here. dividend payers have been working for folks as this market has gone up. do you want to avoid dividends at this point, or do you still hold onto the dividend payers? where is sort of the rotation going to take place in your view? >> yeah, i think -- i don't think you avoid them completely. you know, we like dividend -- especially stocks that are not only paying dividend, but those dividends are growing. so we think that's one part of the market that will continue to do well. just a pure dividend place, that got overpriced in this market and what was underpriced was really technology stocks and growth stocks like that were underpriced. so i think we'll see a bit of rotation there. >> all right. so in terms of sectors, what do you like right now? what are you exposed to? >> again, we continue to like technology in here, the growth sectors. financials should do well. i think the steepening yield

curve really will promote loan growth. we now have -- banks may have an incentive to actually loan money. so the steepening curve is not bad news. so fngtss should -- financials should do well in here. so those are a couple of sectors. we still like materials and energy, as well. >> so over the near term, when would you expect the fed to begin the pullback? i mean, you've got a target for employment. is that an accurate measure looking at 6.5% unemployment? there's a target for inflation. when is your best guess in terms of when the fed begins the tapering down? i mean, a lot of people now betting it's september given the fact that the fed said it's going to be later on this year, and that is a two-day meeting in september. >> yeah, well, you know, part f of -- part of the issue here is really inflation is not kicking up very much in here. so trying to time exactly when that happens is going to be

very, very difficult. but i think at this point it's sooner rather than later. it really takes you out of the bond market, especially long-duration bonds. that's not someplace you want to be. and i think we're going through this period where you have to remember what history tells us, when the 10-year bonds were at 4% or 5%, p/es were 20%. so, you know, those are growth areas. and so, a steepening yield curve here is not bad news. i think it's positive. and the more the markets take over the economy and the choices and less the fed does it, i think the better off the economy's going to be. >> well, i mean, the bond market getting hammered. what's your view on that? the $38 billion that we saw coming out of bond portfolios, bond mutual funds, and bond etfs in the month of june. was that an overreaction, or was that appropriate? >> yeah, my reaction, it's about time. >> yeah, exactly.

>> how long can we go -- it's about time. >> that's what i wanted to know, yeah. >> yeah. we've kept our duration and our fixed income very, very low. maybe it looked too low last year. it looks pretty good right now. so it's really hard to time. but it's about time. you know, we need a normal yield curve. we need normalcy in this. and guess what? the fed never has done a great job of trying to control the economy. >> yeah. >> and the more we can give more of the free markets the choices within there, i think the better off the economy's going to be and the markets will reflect that, as well. >> well, in terms of the continuation, i mean, do you think that money continues coming out of bonds? what's your take in terms of that great rotation? will we see some of the money coming out of the bond market moving into stocks? >> i think that you will. i think, you know -- you know, the reason people are in bonds is for safety. and with this, with the rates

where they're at, that's not a safe place to be. so, you know, i feel maybe short-duration bonds, if you're really afraid of, you know, as the surrogate to cash. but we would be overweighting equities right now rather than being in bonds. i think bonds, there's only one place to go, hopefully, here, because as the economy improves, you know, yields -- rates have to go up. >> rates have to go up, but are there groups that are going to benefit from rates going up in the equities market? or, as rates go up, does that scare off equity investors? >> well, i think -- i think initially we'll go through the sideways market where investors will be scared. but, as i said, when the 10-year bond, looking back over many cycles, if you go back even 50, 60 years, when the 10-year bond was 4% to 6%, p/es were 20, which means it's a much more growth environment.

so i think we have to, you know, re-educate investors that, you know, going back to normal rates is not a bad thing. you know, there's no incentive for banks to loan money for mortgages or for whatever with the flat yield curve. once the yield curve steepens, you'll see that happen. loan growth will go up. there'll be an incentive in there. and that will help -- that will help the economy grow, and hopefully, job growth. >> any other areas that you would avoid right here, john, in addition to the bond market? >> you know, avoiding, you know, the -- you know, some of the utility areas that have really been driving the markets in here, they seem overpriced. they really have become bond surrogates in here. so as rates go up, i think the stock market may do well, but

you see utility sectors and some maybe of the consumer staples in here are not going to do very well in that environment, even though the equity markets do better. >> all right. we'll leave it there. john, always a pleasure. thank you very much for joining us. >> thank you, maria. >> we'll see you soon. john calamos. we want to send it to courtney reagan to get a "market flash." >> maria, after-hours, men clothing retailer joseph a. bank confirming it's looking for possible acquisitions to maximize share value looking for growth opportunities. shares moving higher after hours. joseph a. bank investors might think that the consumers are looking for three at the price of one. >> all right. thank you very much. more of my interview with john boehner. >> i can say the sun isn't going to come up tomorrow, but guess what, it is. so the president can say, i'm not going to negotiate on the debt limit. get over it! >> we'll discuss the upcoming battle over the debt ceiling.

the nsa scandal. his relationship with the president. that's coming up. and this horrible week in the markets is over, but are the markets' storm clouds here for an extended stay? we're looking at the trading floor at bnp now, and we'll talk with the boss coming up. find out where he sees bonds and stocks headed from here, and what he's hearing from clients. stay with us. i got this. [thinking] is it that time? the son picks up the check? [thinking] i'm still working. he's retired. i hope he's saving. i hope he saved enough. who matters most to you says the most about you. at massmutual we're owned by our policyowners, and they matter most to us.

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bank by assets. it's looking for a greater footprint here in the united states. cnbc exclusive live from the bnp trading floor in new york. great to see you. thank you so much for joining us, sir. >> thank you for having me, maria. >> yes, we were supposed to be at your trading floor today. we hope to come there another time. given the volatile markets. we're happy to have you on the program. let me ask you your opinion or what you have seen this week in this wild market, from clients, from traders. how would you characterize this week? >> well, listen, maria, we've -- definitely we've seen a lot of volatility. equities, fixed incomes, the driver is the fed announcing that they might be providing less support to the economy. it's -- to me, it's a good

fundamental, as it's a good sign for an economy which is doing better and which is recovering as it relates to paribas, it's important to continue to advise our clients on hedging strategies, domestically, around the world, which is what we do. it's in the firm's dna. >> yes, and, of course, part of your work recently has been your expansion plans in the united states. why is this part of the world so attractive in terms of the u.s. investor base? >> well, we're very excited. you know, the economic trend here is actually very positive. we've built this platform over the last 50 years. we benefit today from a very diversified business model, corporate investment banking, investment solutions, and retail, which, by the way, given the constantly regulatory landscape will be an asset going forward. as it relates to investors and issuers, there is something i would like to share with you.

something was done very systematically lately, which is to really take european, asian, latin american insurers into the u.s. market. last friday, we were a book runner for rio tinto, raising $3 billion. a few days earlier, we were taking to market here in the bond market, u.s. bond market, to u.s. utilities for a combined $1 billion. and more recently, as well, we were the bookrunner for wynn, in the telecommunications space, for a high-yield transaction of over $500 million. and we even did edf, electricity of france, french company, we actually do french companies actually. >> so you've been quite active. in terms of reception from investors, where are investors allocating capital? what are they most excited about? obviously, you mentioned a handful of successes there. investors wanted in on those deals.

>> well, the investors actually have been really, you know, struggling for yield, as we all know. the supply/demand has not really been there. but clearly, the corporate space lately has been a safe harbor, and this is where they've been focusing their attention. it's a great opportunity for bnp paribas, as where we've really been focusing, it's made the link and made the connection between east shore client and investor clients. this is what we do around the world as well. >> and as rates move higher, what's the impact on your business? >> well, two things here. we like volatility. this company is about risk management. and actually, we are quite active to advising clients on volatility. this is good for us. and this is what -- this is what

we've been doing for, you know, financial institution clients, investor clients. in the meantime, we've been really -- you know, been very attentive at supporting our issuer clients to make sure they would find the right window to still benefit from a still quite low rate environment. >> and let me ask you this, jean-yves. because we keep hearing about the trouble in europe. you are one of the major banks. tell me what we're seeing in europe. are we seeing any relief in terms of the debt crisis, or are we still stuck? knowing you're part of the north american business, part of the french bank, talk to us about what's going on in france and in europe right now. how tough has it been in. >> maria, there is no question that the expectations for growth in europe is very limited near term and medium term. however, i believe europe has made a lot of progress. the systematic risk is probably

behind them. you know, the peripheral countries have really well managed their, you know, budget deficits down. their account -- current account balances has now stabilized. they've even shown, actually, more productivity and competitiveness. on the governance and policymaking side, the ecb has been quite strong in terms of giving guidance. and the mechanisms as such has the esm has provided much more stability, including funding solutions for countries in need. you know, the european banks actually are much more capitalized and are in a much better shape. we've been -- bnp paribas -- have been leading the way here, with benefitting from much better capitalization, liquidity, and solvency ratio. the basel 3 is now at 10%, which is one of the best in the industry.

>> i want to ask you about capital and all of this -- the changes in the rules out there. because the regulatory environment is such that you've got regulators all over the place coming up with their own ideas, whether it's compensation rules in switzerland or capital rules from basel and the u.s., or, you know, dan at the federal reserve on too big to fail, vickers, liken, a lot of regulators. tell me what you're envisioning in terms of what regulations stick and what is a lot of noise? how are you dealing with this much more intensified regulatory environment? >> well, no question, maria, this is a long list. well, maybe as a first comment, bnp paribas believes in a sound international regulatory government. we believe it's going to be good for the industry medium term and it's good for the economy. having said that, you are absolutely right. it's an additional layer of complexity. as it relates to regulation, it's not so much regulation

that's the challenge. this is more like when first the uncertainty, we still have a lot of uncertainty there in terms of some rules still needed to be drafted, and this is really the lack of coordination between u.s. and europe. >> right. so do you think there should be a global standard, or can we operate -- i mean, what happens to the -- to the u.s. banks or the french banks if you've got different rules, and you're all operating in the same places around the world? >> well, you know what, a global standard would probably be the right way to go. you know, i'm a very optimistic person. i do believe that, you know, with more dialogue, with more connectivity between regulators, by way of domestically and across the continent, hopefully one day we'll get to some -- a place where the regulations will be much more coordinated. in the meantime, you know what, maria, we here in the united states benefit from very diversified business model. and i think it's going to be a strength to adapt, adjust to

this quite complex and constantly changing regulatory landscape. >> and we haven't even discussed the derivatives part of dodd-frank, putting derivatives on exchanges. jean-yves, what kind of year are you expecting in terms of the year, the economy, your business? >> you know, as it relates to us, i believe it's a positive trend. it's going to provide much more transparency for the market, for the clients, and for us. it's been a real opportunity. we've been onboarding new clients, starting clearing for them, and we expect going through wave three to be even more proactive there. that's, as well, in the suites part of what we do. >> all right. we'll leave it there. sir, good to have you on the program. we so appreciate your time. thank you so much. >> thank you so much for having us. >> have a great weekend. the irs scandal has been quiet

this week. but it is still very much on top of mind of the congressional leadership. >> how do your entire senior staff know about this for months and months and it's never mentioned to the president? >> part two of my exclusive interview with the house speaker, john boehner, is coming up. we'll talk about the irs scandal, government surveillance, getting things done in washington. stay with us. back in a moment. ideas, goals, appetite for risk. you can't say 'one size fits all'. it doesn't. that's crazy. we're all totally different. ishares core. etf building blocks for your personalized portfolio. find out why 9 out of 10 large professional investors choose ishares for their etfs. ishares by blackrock. call 1-800-ishares for a prospectus, which includes investment objectives, risks, charges and expenses. read and consider it carefully before investing. risk includes possible loss of principal. ♪ [ male announcer ] the parking lot helps

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welcome back. breaking news on today's resentencing, a former enron ceo, jeff skilling. scott cohn has the story. scott? >> reporter: maria, this is the first time that we've seen jeff skilling since 2006 when he was originally sentenced to 24 years, 4 months for his role in the most notorious corporate scandal of all time. that case has been back and forth in appeals all the way to the supreme court. today, the justice department and skilling's attorneys presented the judge with an agreement that puts this enron case to rest for the last time. finally. jeff skilling sentenced now to 14 years from the original 24 years. after the federal appeals court said that that 24 years was too harsh. skilling's convictions now all stand. he will release $40 million to the victims. i asked skilling's defense

attorney where justice was served. daniel said that justice, in fact, was not served, but nonetheless -- nonetheless -- let's see if we can go to him now, skilling's attorney. >> i do not feel that justice has been served in this enron story, particularly as it relates to mr. skilling. i believe that this has been one of the most misunderstood cases. >> reporter: in the end, you've got the agreement that you wanted, and jeff is still maintaining his innocence. but legally, he will always be guilty. how hard was that for him to swallow in the end? >> it was not an easy decision to give up his remaining legal rights, to challenge the convictions. he does maintain his innocence. we all fiercely believe in his innocence, and there was no

requirement that he plead guilty as part of this agreement. but with the hope that he would be out in a reasonable period of time -- >> reporter: jeff skilling could be out by 2017. the justice department says that jeff skilling will no longer be able to challenge his convictions, and that the victims of the enron scandal will finally be compensated with that $40 million being released. maria, back to you. >> all right, scott, thank you so much. great work, always. up next, one of the most powerful men in washington. don't miss my second part of my exclusive interview with house speaker john boehner. that's next. we'll talk about the irs targeting scandal, government surveillance, and his take on his relationship with the president. also ahead, gold getting hammered along with the rest of the markets this week. find out how to profit from its next move up or down. keep it right here on "closing bell." ♪ i want to make things more secure.

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at cognizant, we help forward-looking companies run better and run different - to give your customers every reason to keep looking for you. so if you're ready to see opportunities and see them through, we say: let's get to work. because the future belongs to those who challenge the present. welcome back. only 6% of likely u.s. voters gave congress good or excellent marks for doing its job in a recent poll. that's part of the pressure house speaker john boehner is feeling inside and outside of his party. between rumored challenges on a speakership and battles with the white house, the speaker is facing several important legislative issues, including immigration reform. let me ask you about immigration. a lot of people hope that we can get something done there. you've said that you won't move a bill on immigration on the house floor without a majority of gop support. why?

>> well, i think big issues here in our country need to be done in a bipartisan, bicamera basis. what i said is we need a majority of both parties to work together in a constructive way to deal with our broken legal immigration system and the problem with illegal immigration. but nothing -- nothing's really going to happen until we're able to secure our borders. it is the first step everybody recognizes, if we don't have a secure border and a way to enforce our immigration laws, none of this is going to work. i believe that we need to fix this system. we have a mess. we've kicked this football around now for 15 -- political football -- around for 15 years. it's time for the congress to work our way through this. i don't -- i'm not suggesting it's going to be usesy. but what we don't want to do is to rush something through here with a minimum vote. you know, the way they did obamacare. i just think if we're going to make big changes, you have to

have the majority of both parties in favor. >> in terms of the senate bill, is that what the issue was, the border control? >> one of the issues in the senate bill is their border security, i don't think, is up to speed. i don't think the triggers in their bill are sufficient to give people confidence that we are, in fact, going to secure the border. >> we all know that there was a challenge to your speakership earlier this year after the tax hikes went through. some in your party are predicting another challenge because of this immigration bill. are you worried? >> no. i fully expect to be speaker. you know, as the speaker, i take a lot of hit, i get a lot of hatches thrown at my back every day. listen, it comes with the territory. if you're going to lead here in washington, you know, you're going to take some hits. but i've got a good relationship with our members, work closely with them, and i have been clear how we intend to proceed on

immigration. i think people are comfortable with it. >> let me ask you about the nsa collection program. you've defended it. you called edward snowden a traitor. we learned this week there was a plan to attack the new york stock exchange, and it was stopped in its early stages. but people are still pointing out that this is too much information, that the government is watching and listening to the american people, average citizens. is it? >> the president pointed out that these programs help keep americans safe. these programs also help us go after terrorists who want to harm americans. i've been briefed on all of the programs, and i believe that there are substantial safeguards in place where ordinary americans have no -- there's no threat that their e-mails are going to be reviewed or their contents of the phone calls will be reviewed. there's almost no chance of that happening. >> let me ask you about the debt ceiling. more worry on wall street that we could see a government shutdown over this and another major fight on the horizon.

white house officials we've spoken to on background say the president will not negotiate on the debt ceiling again, period. that any deal in replacing the sequester or further reducing the deficit needs to be separate from simply approving raising the debt ceiling. >> well, you know, i can say the sun's not going to come up tomorrow, but guess what? it is. so the president can say, i'm not going to negotiate on the debt limit. get over it! we're spending more money than what we're bringing in. we have to deal with this problem. and if we're going to raise the debt limit, then we've got to do something about what's causing us to spend more money than what we bring in. so guess what? we're going to have the debate and we're going to have a negotiation. >> the american people really want to see the two sides get together. when was the last time you spoke to the president? >> i spoke to the president last week or two. >> how's your relationship? >> oh, i've got a good relationship with the president. there's no issue there. the problem we have is that, you know, we come from two different ideological spectrums, you know? i've got 11 brothers and

sisters, my dad owned a bar, i owned my own small business as well. i believe the government's too big, spends too much, and nobody is holding it accountable. the president, he's never been in the private sector. you know, he believes in bigger government. and so, even though we believe in different things, it's our job on behalf of the country to figure out where's the common ground. and so, finding that common ground, though, has been difficult. >> i've got to tell you, mr. speaker, i speak to businesspeople all the time. and the house, you know, passed a bill on abortion. and the people that i speak to, they agree with you on economics. they are fiscally conservative, but they're socially liberal. they believe in gay marriage. they believe in a woman's right to choose. and they feel that you've let them down, the gop has let them down. >> well, listen, after the kermit gosnell trial in philadelphia, and some of the horrendous things going on, i think passing a bill to ban late-term abortions was the appropriate thing to do.

we can walk and chew gum here. the number-one focus continues to be on the economy and those things getting in the way of growing our economy. we're going to continue to do that. >> and my thanks to house speaker john boehner. up next, gold hitting its lowest level in gold hitting it lowest level in nearly three years. will the meltdown continue, or is now the time to buy in? stick around. we'll take a look at the gold trade, next. in that time there've been some good days. and some difficult ones. but, through it all we've persevered, supporting some of the biggest ideas in modern history. so why should our history matter to you? because for more than two centuries, we've been helping ideas move from ambition to achievement. ♪ and the next great idea could be yours. ♪

the ones getting involved and staying engaged. they're not afraid to question the path they're on. because the one question they never want to ask is "how did i end up here?" i started schwab for those people. people who want to take ownership of their investments, like they do in every other aspect of their lives.

welcome back. gold got dusted this week, dropping nearly 7%. fears of fed tapering weighed heavily on the yellow metal. but does it actually create a golden opportunity? we get into the action with brian sutland at the sutland volatility group. brian, did gold overreact this week or was it appropriate? >> yeah, maria, big move. it definitely got a little overextended here. granted, you've seen interest rates move higher and we've seen the dollar index strengthen. those are main factors for getting out of gold. it rightfully so sold off. but when you have sovereign wealth funds, big institutions getting out, it can get volatile and it can get hairy. i think it got a little overextended. our pricing model has gold at around 1350. so slightly higher from here over the next 30 days. i'm not overly optimistic, but you can certainly step in and buy a little on this dip. >> any real gold recovery,

though? what's it going to take for a real gold recovery, sustained? >> for gold to rae come back, we need to see yields on the ten-year treasury fall a little bit. we need to see that continued expansion of the monetary base. we haven't gotten that indication out of the fed. so for gold to go significantly higher, we need to see that happen. if rates go higher and the dollar continues to strengthen, gold can go higher. but it's the time to buy the dip and get a bounce. >> we'll leave it there and see you soon. for more, stay tuned for "options action" after "fast money" tonight. but next, my thoughts on this crazy week and what's in store next week. we'll be right back. ♪ [ cows moo ] [ sizzling ] more rain... [ thunder rumbles ] ♪ [ male announcer ] when the world moves... futures move first. learn futures from experienced pros with dedicated chats and daily live webinars.

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and finally tonight, my observation on a tough week on wall street. the second worst week of the year, in fact, for stocks. the correction has clearly begun and the sentiment is shifting. as we all anticipate, the federal reserve will begin tapering its multi-year stimulus by the end of the year. but frankly, it was long overdue. i think this sell-off was healthy. and remember, sell-offs, no matter how painful, always offer an opportunity to get back into stocks, those companies that may have looked expensive earlier.

plus, in the long-term, i'm talking 10, 20, 30 years, it is very tough to beat the performance of equities over the leper. that is where you make money. the question is, after a 5% sell-off from the highs, will stocks continue to bleed or is this truly a buying opportunity? ralph acampora told me earlier today that long-term he is still bullish. although he said over the near-term, it is not over yet. john calamos also has a great record. he says use this as an opportunity to buy, even though, yes, he agrees we're going to be riding choppy waters during the summertime. >> we did enough damage this week, technical damage, to suggest that this correction is not over. but i am by no means bearish longer term. in fact, i am welcoming this decline. >> you think we're going to go through a sideways market, and what we may very well happen in here, we'll see a rotation out

of some of the more, what i would call income-oriented stocks. >> the ultimate question, of course, where are the alternatives. as rates have fallen to rock-bottom levels, investors have been finding a home in good old-fashioned u.s. companies that are exposed to global growth and that pay dividends. and by the way, they've done well doing so. so is it time to jump ship? well, it really depends on a first thing. first thing is your time horizon. i would recommend not being a short-term trader. invest for the long-term. there is nothing wrong with waiting for some stocks to come to you while the volatility settles out if those two gentleman right over the memory. while sentiment over the fed may have shifted, it does not appear that the fundamental backdrop has changed at all. corporates are still sitting on nearly $4 trillion in cash. the u.s. economy is in recovery, have been if it's an anemic growth pace, and we'll likely soon be able to grow without the fed's help. the noise will get louder over the coming weeks, but your actions do not have to get more frequent. watch the fundamentals, calmly, no matter how panicked this market seems.

and before we go take a look at the day on wall street, and it was a winner -- actually, it was mixed to higher. the market did give up much of the earlier gains by the close. the dow tonight up 41 points, the nasdaq down 7, and the s&p 500 up four points. of course, the market is showing a decline on the weekend. second worst week of the year. have a great weekend, everybody. that'll do it for "closing bell." stay with i know back. is "fast money" begins right now. live from the nasdaq market site in new york city at times square, our traders are brian kelly, steven grasso, joshua brown, and let's get straight to the big stories. the dow seeing its worst week since april 19th. the ten-year yield rising above 2.9% for the first time since august 2011. and the vix soaring to end just below the key 19 mark. there were some signs of life. take a look at the big intraday reversal we saw in the dow and s&p, although pulling back slightly in the final hours of trade.