CNBC's Domm: Today's Agenda in the Markets

Volatility in in the air this morning, signaling another up and down day for Wall Street.

Asian markets took a beating overnight after the big drop in U.S. stocks yesterday. Japan was off 2.4% and Korea fell 4%, its worse decline in three years. European markets were able to stem the wave of global selling in equities for a while but rolled over as U.S. futures slid. Some markets there are now moving higher.

Second quarter GDP was reported at 3.4%, a bit lighter than expected. The dollar is moving higher this morning. The yield on the 10-year stands at 4.77%.

Oil is slightly higher after a rollercoaster ride yesterday that saw it higher and then lower, as selling in stocks forced traders to unload positions in markets where they held profitable positions.

What They Say Matters

Markets, and CNBC viewers, will be watching carefully as the President's economic team meets with CNBC's Dylan Ratigan this morning. In an exclusive event on Squawk on the Street, Ratigan will talk to Treasury Secretary Hank Paulson, Commerce Secretary Carlos Gutierrez, OMB Director Rob Portman and Ed Lazear, the President's economic advisor.

Deal Talk

Traders are continuing to watch the credit markets and deal activity. The Wall Street Journal reports that KKR may not be able to carry through with its IPO plans. Overnight, Cadbury said it was delaying its sale of its US. drinks business, citing volatility in debt markets.

Gross On Stocks

Pimco's Bill Gross told Erin Burnett earlier this week that stocks would be joining the earthquake that was hitting the credit markets. Well, we see that he was right. (And by the way so was CNBC's Jim Cramer who told everyone to take profits last Friday)

So we are listening to what Gross says today on Squawk Box about stocks and the Fed.

"I wouldn't buy them. I wouldn't sell them. I think stocks are appropriately valued at this point. Corporate earnings are doing well. The economy is doing decently, not great. We're not heading towards a recession. There's nothing wrong so I'm not a buyer or seller at this point but I'm not a panic seller," said Gross.

Saved By The Fed?

Traders are betting the Fed will come to the rescue and Fed funds futures have now moved to a point where they are signaling a 100% rate cut by December, from less than a 50% chance just a few days ago.

Gross told CNBC's Rick Santelli he doesn't see any immediate action from the Fed.

"I don't think 300 points on the Dow is going to force (Fed Chairman Ben) Bernanke to cut or even three hundred more points should that happen today in terms of the market place. Bernanke really wants to see somewhat of a decline in risk attitude. That doesn't mean he wants a crash. That doesn't mean he really wants to see the markets go down. But he wants to see a controlled, tempered type of market and we're beginning to see that. We were just at Dow 14,000 and we're not far from that. So it doesn't mean we'll have a debacle, and it doesn't mean the Fed's going to come in Friday night or Monday morning and cut interest rates. I don't think they are either," said Gross.

Back To Business -- As the hand wringing on Wall Street continues, corporate America is carrying out business as usual and Scott Wapner is reporting on some companies with good news. Reporting from the Nasdaq, Wapner says the market's been ignoring a good earnings story in tech.

"Cisco authorized an additional five billion stock buyback so even after the carnage of yesterday Cisco brings out another $5 billion buyback, bringing them to a total of $10 billion. Its interesting. They think their stock is cheap even after it just hit a 52 week high. It's pretty significant and a positive sign for tech," he said.