>> we are moments away from the closing bell. i'm alix steel. alix: we did it. you are looking at a record day for the nasdaq. setting an all-time high, settling out at 5132, up by 67 points. really? you could blame this on fed. yes, things are better but they are not great, and that fueled some skepticism, pessimism that fueled stocks.

overall, it was a risk on day. you are at a rally in the s&p and the dow. the three day rally. having their best three-day gains in three months. all of those s&p sectors finishing in the green. here is our managing editor. joe: driving home that point of the risk on day. you look at the biotechs. leading the way. great indication that the bull is back. alix: ironic, too, we had a lower dollar despite all the greek drama. that did well for multinational companies like g.m. you also had consumer discretionary killing it today. kroger beating numbers as well. joe: yeah, no, green across the board. alix: greece is the word today.

must talk about the crazy rhetoric that came out of greece . you had christine lagarde saying, we need adults in the room. today, there is an emergency deal with the big guys monday in brussels. joe: it was not good. they had the talk. nothing happened. a lot of negative rhetoric. we have sound from the euro group head. jerome: we are very committed to a different central scenario which is getting a credible solution for a future for greece inside the euro. they are one of our partners and our deepest wish to keep them in the eurozone. having said that, if the end that were not possible, we are prepared for all eventualities. alix: later, we heard him say that greece is moving in the direction of an exit. joe:. it feels like it is getting real alix: the realer it gets, it seems investors care a little bit less. small caps hit a record.

we have a risk on day. we had some chatter from the big guys who seem to take it in stride. jamie dimon caught my eye. he said earlier that shareholders note, we must be prepared for potential exit. we stress tests are company for possible repercussions resulting from such an event. reek exitssiblea g would create -- structural reforms. no panic there. joe: with us to discuss all of aulse things, we have p christopher, a wells fargo chief international strategist and tracy alloway. thanks for coming on. so, what do you make of greece? >> i'm tired of greece. they only a vacation. i think it is a combination of complacency and simply the anticipation that the europeans had this one covered. i don't think that is really

accurate. mr. dimon said it better, we all the stress tests our portfolios. we need to think about how this could impact. we think the international markets will be more adversely affected than the u.s. so we, again, this is part of our theme this year that we think the u.s. will lead the way once again. so we prefer the u.s. all year. alix: does that mean it is about the fed moving the u.s. markets and not really euro area? is that our takeaway? tracy: that is fair to say for today, but i am on your side. i think markets are underpricing the risk in greece. it feels everyone has gotten sick of the story that they are not paying attention anymore. it's really, finally -- i'm sure i will get in trouble -- it is coming to a head. maybe i'm wrong. joe: i think it might be time to get interested in greece again. some of us have been interested for a long time. alix: if you take a look at the

upecasters, 15 of them wound seeing gains for european stocks this year. citigroup is the most bullish. and sees the stock 600 index jumping 17% to the end of the year. is that that things are getting better or is that mario draghi will have to save the day? is mostly theit economies are getting better and that mario draghi is buying lots of bonds. france,issuance of germany, italy and spain for this year promised to q.e. in r5 europe. at the end of the day, they're there is the possibility contagion will go from greece to the rest of europe by other means than the bond market. we could see some price and see of uncertainty which will be the next country that has a banking crisis. ok, you'ret to ask, talking about contagion -- what is the liquidity event in the bond market? there is mass reduction.

paul: it is just that we think that probability is lower than it was in 2010 to 2012. there is a lot better safeguards in place. the ecb is buying bonds, acting like a central bank of last resort. joe: speaking of central banking on the fed, we have the second day after the fomc, something fascinating happened wish -- which is that you had goldman had forecast a rate hike moving to december. to you had citi moving september. it seems to me and others have pointed this out, you have so much munication. communication. the end result is two different banks take exactly the opposite take away from the decision. paul: there is still a lot of data to parse. the fed would agree is data dependent at this point.

as long as the economy continues to improve, we could still see those dots move towards a rate hike in september between now and the end of summer. alix: at the end of the day coming have to wonder is this a credibility issue with janet yellen? the markets and the banks do not believe what they are telegraphing. i do not think it is credibility. she is having to walk fine li a tightrope act, between giving herself -- being able to navigate the markets to certain expectations. the thing she is trying to avoid is an unexpected rate rise where markets panic and never woodhead for the exit. alix: and then she has to reverse course. joe: you reported on a bond that is backed by dirty laundry. tracy: bond story. joe: we are seeing a rise of esoteric debt backed by laundry. what is going on here? alix: what does that actually

mean? how do you have a bond backed by laundry? tracy: it is not physically backed by laundry. what is is backed by is equipment leases for washing machines. it's backed by people washing their laundry, demand for washing machines. you were talking about the central banks. all the stimulus from the central banks has sparked this. huge desperation for returns on the part of investors everyone is after some sort of yield. they are going into these weird parts of the market. this part of the market is called esoteric asset-backed security. they are sliced and diced loans that might be more unusual than home loans or commercial mortgages. they get sold to investors. you get a better return than buying treasury or some other more normal kind of debt. alix: how are they rated? tracy: this yield was given a rating by standard & poor's. joe: what are some of the a

other examples of esoteric backed -- them: i like to call god's gift to structured finance journalist. you get all sorts of stuff. the typical things are shipping containers leases, time shares. you have unusual stuff like franchise rights to restaurants, music portfolios, we have the david bowie bonds ages ago. sometimes you get where it stuff -- right before the financial crisis, resources were packaged into bonds. alix: the key word, right before the financial crisis. when you look into these bond picking up in 2014, what part of that makes you concerned? this not justw esoterically but if we saw it in the housing market or in more conventional markets as well. i think this is where you get ng, wewks on the fomc sayi

have to put a stake in the ground, line in the sand that rates have to start moving away from zero. alix: if you are putting money in risky assets with higher yield, is that a danger? money is being push it aside by the fed. paul: the idea is that the ideas being -- the money is being pushed into laundry bond. then you start to fear the bubble. alix: my favorite story of the day was we might be getting a new $10 bill with a woman's face on it. we do not know what woman yet. by 2020. i want to get everyone's take on who you think it should be. should i go first? i was going with rosa parks. i have not heard that. and i think that would be an awesome $10 bill. joe: i was going to say barbara jordan, the first african-american woman in the house of represent is. it is a home state bias for me. tracy: i'm going to be boring

and say eleanor roosevelt. played a big role in the depression. the formation of the united nations and had a background theme -- role. alix: there was an amazing documentary on her. it was awesome. paul: i'm going with clara barton, a blast from the past, someone instrumental in improving wartime sanitary conditions, saved the lives of tens of thousands of soldiers. my number two would be my mom. points. and apple pie. joe: a personalized bill. out, i wasuld point trying to find out why it was the $10 bill and not the $20 bill, the rumor was because of counterfeiting. their only $1.9 billion of notes in circulation for $10 bills. guys, thanks so much. good to see you. paul, we will talk about much more. fitbit's ipo coming up after the

break. ♪

welcome back to bloomberg market day. the nasdaq edging above its march 2000 peak, boosted by biotech. fitbit did not hurt. after heavy demand for the ipo led the company to boost the size of the deal. airbnb is in talks to raise money for a $24 billion valuation. we take a look at the animal spirit for all things tech, what does that tell you about the markets? market isls me the

starting to pay attention to the improvement in the economy. the market is paying attention to what the fed is saying, that there may be some further pre-verification -- prev uncertainty and went to make that rate hike. alix: when you see companies like fitbit go public, is there a concern that we will see a private bubble move into a public sector? chris: that is always a concern when you have interest rate that zero. the fed is committed to raising rates at some point. it will not be possible for those sorts of deals that might be bubble territory to really get a lot of traction. alix: so, does that part of it bursrt? will we not see a $24 billion valuation? chris: it is probable that fitbit and other companies that do ipo's have to rely on their own fundamentals. that have been ipo's

not done as well. we have been it zero interest rates for a very long time. alix: want to talk more about bubbles on that will lead me to china. david woo was on bloomberg tv earlier. thed: two years ago when new prime minister-president came into power, they said, we need to keep the housing bubble under control because otherwise, this is going to end badly. 18 months later, the housing bubble is still there. i think they're in a very weak position. aix: he went to talk about gold has not holding up for the

chinese. does that give you a different pause? isn't what i would think of as an investment culture. it is a culture of building. when they need liquidity and they cannot pump it into the the stocky might let market run for a while. but that is a poor substitute and one that i think they're not really controlling or managing well. alix: what is the catalyst for the bursting? yes, chinese stocks are headed for the steepest weekly loss since february 2009. what is the catalyst? chris: it is hard to say what that might be. new think ofome state-owned enterprise, maybe a copper producer that cannot make his payments. alix: if something goes belly

up, the government does not save it, doesn't that point to the fact they are willing to focus on reforms? long run, you're right. for the short run, it creates all these fears that their other companies waiting in the wings that have yet to declare their own bank of these. alix: is there a distention between money and china and foreign investors? mccoury pointed out that outflow are fleeing ats the first sign of trouble, but a lot of that is foreign money, not domestic. isis: a portion of it foreign company switching from renminbi into dollars. there is not a lot of capital accountability in china. you bring dollars into the country, they will end up at the people's bank in exchange for renminbi taking his place within the economy. if you are local, and you are worried that the renminbi might

depreciate, you might take some of the deposits and confer -- conver them to dollars. alix: it is not like it is changing sentiment. what is the contagion fear? if we do have a bubble burst for chinese stocks? chris: i think what happens in the first place, you will see more chinese money trying to leave the country. there are different ways people tried to many relate the -- manipulate the rules. the second thing would happen would be that china's economic activity would slow. we would see more bankruptcies and more concerned about the local governments which have serious debt problems. and that will trigger into south asia and china's trade partners. china is going to do less business with mcat from there into the rest of the world. south asia and from there the rest of the world. alix: coming up, code might seem

like a foreign language for beenywood, but they have t mastering it for years. i think there is an "matrix" thing here. ♪

alix: welcome back to bloomberg market day. breaking news. we are looking at smi & wesson, that stock is down 6%. it is an earnings story for this company. fourth-quarter sales and earnings beat estimates, but first quarter coming in light. $145 million. on earnings looking at 23 cents a share. we are seeing the stock lower as a result. for more, we want to get to our top stories. an agency that tracks extremist says the suspect in last night's fatal shooting of nine people at

an historic lack church in charleston was not known to the organization. an official at the southern poverty law center says it was unaware of the suspect dylann roof. arrestedar-old was earlier today. the shootings are being called a hate crime. federal officials have opened an investigation cap president obama obama spoke about the violence earlier today. president obama: i've had to make statement like this too many times. communities like this have had to endure tragedies like this too many times. we don't have all the facts but we do know that once again innocent people were killed in part because someone who wanted to inflict time had no trouble getting their hands on a gun. alix: a librarian, recent college graduate, and 87-year-old woman are among the dead. also killed was the church's pastor. the second time is the time for president obama's trade bill. today, the house passed its

fast-track trade measure. the senate could take up the bill next week. but but it will still need support from democrats who want federal aid for workers displaced by international trade. open source software company red hat is recording -- reporting first quarter profits. 3 cents better than estimated. revenue of $300 million topping estimates. traileds growth estimates. down 2% in after-hours. and fitbit ended up in its trading debut, after heavy demand led to a boost in the size of the deal. the maker of wearable fitness tracking devices -- raixsed $732 million. at the ipo price, fitbit is valued at $4.1 billion.

computer code is not sexy, exciting or visually appealing. nevertheless, it has made numerous appearances in movies and tv. in scenes that run from realistic to fantastical. here is a look at how cod has been put trade on filme -- how code has been portrayed on film. >> code. code, code. code code. quite the little coder. >> i am the only one of these clowns. >> do you know anybody who can debug 2 million lines of code? a systems display. >> data charts. >> give me a reading on it. >> think you had better come over here.

>> i have never seen code like this. >> i think we have got a hacker. >> i am getting hacked. >> nicely played. >> come at me! not good. crap!e this hacker >> go, go, go, go! [bleep] shut them all down. >> shut down the system. for: that wraps it up today.

thank you so much for watching the bloomberg market day. have a great, wonderful afternoon. we will see you back here tomorrow. ♪

>> from our studios in new york city, this is "charlie rose." charlie: sally mann is one of america's preeminent photographers. for three decades, she has captured images that are haunting and romantic all at once. her 1992 series made her famous and created 10 years it featured her children at home on their virginia farm. these photos deemed a great work of art outrage some for their composition and nudity. sally writes about that moment as well as her life and work in a new book called "hold still: a memoir with photographs." i