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The market is falling today on reports/rumors that the Fed will raise rates in September. The current probability is 24%, so that needs to increase to at least 40% for there to be a realistic chance of a rate hike. If the market is already falling now, then it may fall even more for that percentage to cross the 40% threshold. It would then fall after the Fed actually raised rates. In total, a 10% correction wouldn’t be out of the question.

However, I consider this entire debate to be meaningless since the Fed will need to cut rates and do another round of QE soon as the economy is weakening. There is no sign of economic strength, so a rate hike would prove the Fed is not data dependent.

Wells Fargo & Co (NYSE:WFC) was fined $185 million for its employees opening millions of fraudulent deposit and credit card accounts to meet sales targets and collect bonuses. It has fired 5,300 people over these improper practices. Dick Bove downgraded the stock saying the customers may have a tough time trusting their banks and another wave of regulation may be needed.

Finisar Corporation (NASDAQ:FNSR) tops Q1 EPS by 8 cents reporting earning $0.38. Revenues of $341.25 were up 8.7% year over year and beat estimates by $8.5M. Finisar’s CEO referenced the strong worldwide demand for optical components which was spurred by long haul metro and wireless rollouts by major carriers. Demand from China and North America is the strongest., Inc. (NASDAQ:AMZN) is interested in pursuing the rights to live stream sports which include soccer, tennis, golf, rugby, and auto racing. The most popular sports in America are also being considered. Sports are the holy grail of live content because replays of the events lose appeal. The only thing that comes close to sports is the news, but even news can be consumed after it occurs. If Amazon gets the rights to sports content, it can differentiate itself from Netflix.