(groans) a lot of people are gonna be kicking themselves for not buying in this market. (woman) visit remax.com where you can see all the listings in thousands of cities and towns. where do you want to be? you know, the beer you choose says a lot about you. you want friendly, but not pretentious... classic, never trendy. you want a real american beauty. are you talking about the budweiser? or... me? yes. ♪

>> it's been probably the best six years of my life. >> but jane knows the years left in her career are numbered. with the pressure to look good even more intense now that porn is shot in high definition. >> don't miss the premiere of "porn: the business of pleasure" tonight at 9:00 right here on

cnbc. just a couple of other headlines for you here.. travel channel valued at between 600 million and $1 billion. sources telling reuters potential bidders, according to reuters, are scripps networks and time warner. let's hand it off to "the closing bell". there's a live picture of the floor of the new york stock exchange. approaching the final stretch on wall street with a triple-digit move on the up side. 248 points higher on the dow. hi, everybody.y. welcome to "the closing bell." i'm maria bartiromo on the floor of the new york stock exchange, where there is a bit of euphoria going on down here. we've got money moving into the technology sector on the heels of intel's better than expected quarterly report last night. that set the tone for technology. we've got the likes of google, amazon, ebay, across the board names in tech soaring today. banks ditto. citigroup up nearly 10%. that's one of the strengths within the dow industrials, which now are back above 8,600

with a 244-point move on the up side for the blue chips. jpmorgan up better than 5%. a number of the financial services companies on the up side in very heavy volume. nasdaq looks good, up 3 1/3%, 60 points higher. as i mentioned, intel really setting the tone here. 18.59 the last trade on intel. up 6% on the nasdaq just in the last six sessions.. the s&p 500 higher by 26 points. better than 2 1/2%. also ahead in the program, we're going to have news on cit group. sources telling me we are going to hear a resolution for the liquidity issues facing the company within the next 24 hours. we will have the details. get to our reporters covering the market right now at the nyse, the cme, and the nasdaq. kicking it off with bob pisani. >> hello, maria. we've had a nice midday move as well. the fomc minutes were modestly bullish, raising gop estimates. they talked about an exit strategy from their loose monetary policy. but don't kid yourselves, folks,

we've had a nice rally here starting in the early part of the day. let's take a look at what happened. overall, folks, last three days s&p 500 up 5.7%. that's the best three-day advance since march and april. the rally's more than intel, though. i know you know all about intel so, i won't belabor it. take a look at financials. here's point one. continuing the rally that began on monday. look what's happening in financials. goldman sachs. multiple upgrades on the heels of their earnings reports.s. nice moves right across the board. double digits in all the big financials this week. number two, credit card companies trading higher.. we've got master trust data for june, american express popped up in the middle of the day. the chargeoffs for their credit cards, these are the debts the company believes they won't be able to collect, actually dropped in the month of june versus may. we also had similar comments from discover. capital one had modestly positive comments as well. look at those nice moves up for those credit card companies. the weaker dollar. shanghai index at a 52-week high. all the commodity stocks are moving to the up side. the big names like alcoa and

freeport, u.s. steel, all to the up side. and even the big company international stocks are moving. brazil is up. 5.3% today in the big commodity names like vale and petrobras to the up side. csx had good earnings. airlines are up. amr had a loss that was not quite as bad as expected. some of the other names to the up side as well. finally look at the media stocks. gannett reported earnings better than expected.d. don't kid yourselves, we know ad revenues are down 32%, but they did say they saw some bright spots in ad revenue for the third quarter. all the big media names are to the up side. tradertalk.cnbc.com. bertha, of course having a good day at the nasdaq as well. near multimonth highs. >> they really are. and right now we've also got intel at a 9 1/2-month high. just over $18 a share. it was a net loss because of the e.u. but beyond that you couldn't get much more perfect.

beating on the second quarter, being bullish for the third quarter, and really setting a bullish tone as far as technology here in the second half. that has really washed over the rest of the tech sector. we've got in particular the chip sector doing very well. chip equipment stocks are doing well. applied material up 5%. altera which reported earlier is doing up. the intel effect goes on to the hardware players, and microsoft as well. they're all seeing some very nice gains today. intel talking a bit about its communications chip.p. and we also saw a couple of stocks move on an initiation to a buy. the buy signal there on cisco and juniper over at citi. a good day for that. they get a nice move on that.. the one area of transports that doesn't look so good, the trucking.. j.b. hunt reported and said pricing continues to be a pressure point for them despite the fact that they are seeing a little bit of easing when it comes to fuel costs. you can see all the truckers trading to the down side. of course the big thing everyone's going to be watching for coming back out to the board is google.

google reports tomorrow. one trader telling me today intel brought in some buyers this morning, they saw some real volume. can google deliver and keep that going and move these indices above their resistance levels? that's the big question. we move on over now to the nymex and brian schactman. >> thank you, bertha. as you well know, bertha, from spending time down here fundamentals really aren't moving the market right now. they're still pretty weak. but there were a whole host of bullish things going on. the inventory numbers, drawdown p 2.8 million barrels, bigger than expected. but equities, one analyst telling me oil still tracking the s&p 500. then you have other elements involved like the weak dollar. and since santelli's not here i want to look at the dollar intext a second. being told it's the biggest single driver right now. take a look at oil for the moment up more than $2 on the session.n. goldman sachs did come out and say basically they look at $60 range for the rest of this month but they do see $75 oil by the time we get to september. the rest of the complex while

pretty strong across the board, gas demand slightly up year over year, but the build was big and still stayed bullish, but nat gas was down, basically big profit taking off of yesterday. those inventories come out tomorrow. and maria, i just want to point out gold breaching 940, the next resistance around 950, and copper hovering around a one-month high. >> thanks very much, brian schactman. the other business headlines we're following today, a big story coming out of the federal reserve today. we've been talking about it for the last hour. the latest fomc minutes being released today. and the minutes say that the e federal reserve revised its economic outlook upward for the remainder of this year and next. but the fed is also warning that labor market conditions remain a major concern. unemployment, the fed says, could top 10%. the fed says its top priority is developing the tools necessary to remove policy accommodation in a smooth and timely manner. in other words, an exit strategy. consumer prices meanwhile climbing by higher than expected in june. last month's cpi reading posting

an increase of .7%. economists were forecasting prices to rise by .6. so again, a little higher than some would have liked, similar to the ppi yesterday. year over year xurm prices fell by the biggest margin in 59 years, due mostly to the pullback in energy. if you strip out those volatile food and energy prices, core inflation was up just .2%. stocks, meanwhile, surging today on the closing bell and throughout the session we're now at the highs of the afternoon, with a gain of 244 points on the dow industrials. is the bull market back? let's talk about that with my next guest. blaze tankersley, a strategist with bay crest partners. and brian daly a sales trader at conoco securities. good to have you on the program. thanks very much for joining us. so do you believe in this marks? do you want to put money to work with the dow up above 8600? >> absolutely not. we're probably as committed as we've been all year. i think that what happened here, you had a lot of guys get short.

the market was describing a head and shoulders type of pattern. traders were trying to break it. when they couldn't, that news from intel really got things sparked to the up side.. and what you've got is a big short squeeze going here. i looked at the volumes before i came down. they didn't look that impressive to me. i think there's a lot of earnings yet to come. we've got cat tractor, united technologies, big names like that. we'll have to see how these guys do. and i don't think it's going to be quite as well as what we've seen out of big cap. >> and of course when you take a look at something like a caterpillar, that's really so entwined in economic recovery that we may very well hear something different than some of the news we've heard so far. what about that, brian? is this a short squeeze? some people may say to themselves i want to take a side step here, get away from this moving train ahead of jpmorgan, ahead of citi, and bank of america. on friday, google tomorrow. are you in the same camp?p? >> sort of. what i can tell you is that this morning we did see a lot of

covering going on at conifer. so really the shorts are squeezed this morning. if the s&p can stay above that 925 level today, i think that's going to keep the squeeze on or bring some more money in to work for the short term. and i really think we're in a show me type market in this earnings season. as the earnings come out and the numbers come out, i think traders and portfolio managers are going to react to that. clearly tech's been the leader so far. intel's been good. novellus gave better guidance, flack good comments today. big ones like tomorrow, google and ibm tomorrow.. we'll see what they bring. >> you know, it's an interesting question to ask. is it just a short squeeze, as blaze is talking about, or is it more fundamental than that? you're sitting on a trading desk. you're really seeing the flows on both sides. do you see commitment when it comes to putting money to work for a long-term basis? >> i would say on a short-term basis yes. we had covering but also long buying today. i would say the long buying isn't guaranteed to lock in for the long haul. they would pull out quick if things go sour. >> it sounds like in some wass

you're on t cases you're on the other side of the trade. you don't want to buy into a rally that's all about short sxweez people getting out of the way just because they're worried about the earnings momentum here. what do i avoid?? >> i think you avoid the basic materials. i think you avoid the industrial stocks. some of the old bubble leaders from this last sig move that we've had. i think these are going to continue to outperform. the large cap tech, that's working well. that's one spot i do like. i wouldn't make the statement that everything is bad. but you do have to realize that there was something very specific that took place today. people were short. they were trying to break the market. and they thought this head and shoulders would resolve itself to the down side. when that didn't happen, they panicked and covered. it's that simple. >> final comments here, brian. >> one thing we've seen this week is a quick turnaround. the tide really changed and went out. buying bonds, the dollar strengthening and yen strengthening last week. complete reversal this week. putting beta, putting risk back

on the portfolios, buying tech, buying higher beta names. a complete reverse of last week. >> there's a trader's life for you for sure. gentlemen, thank you very much.q we appreciate it. we'll see you soon.q thanks very much for joining us today. meanwhile, this market is q outperforming today. highs of the afternoon, approaching the final stretch, anything can happen this final hour of trading. important earnings out tomorrow google and jpmorgan among others. friday b of a and citi.q dow industrials up 257 right q here.q 8617 on the average. the nasdaq also solidly higher with a gain of 62 points. gauging the rally is up next. the bulls making this move today but will we see a long-term move higher? how sustainable is it? how much risk do you face by putting money to work right here? then washington's impact on wall street, it's a big one. the push for more financial regulation continues. straight ahead the impact on the banking industry and your money with representative paul kanjorski, my special guest, senior democrat on the house financial services committee, weighing no n. for us.

after the bell technology stocks getting a lift on the heels of the strong report from intel. is the sector a buy here? it's the leadership group on the up side in 2009. we'll take a look at the investment angle for you 4:00 p.m. eastern. the most heavily traded stocks at nyse, citigroup back above $3 a share, up 26 cents. the most heavily traded. back in a moment. not long ago, this man had limited mobility.

last month, this woman wasn't even able to get around inside of her own home. they chose mobility. and they chose the scooter store! if you or a loved one live with limited mobility call the scooter store! no other company will work harder to make you mobile or do more to guarantee your complete satisfaction. if we pre-qualify you for a new power chair or scooter and your claim isn't approved, the scooter store will give you your power chair or scooter free. that's our guarantee. they were so helpful and nice. they filed all the paperwork, and medicare and my insurance covered the cost. we can work directly with medicare or with your insurance company. we can even help with financing. if there's a way, we'll find it! so don't wait any longer,

call the scooter store today. the worst performing stock in the russell 1000 today. it's having its worst day, one-day decline this year. and look at the rift between the transports and j.b. hunt. something's going on here, folks. somebody's right and somebody's wrong in terms of what's a better leading indicator right now. but if you take a look at the infection that j.b. hunt's worse than expected results have had,

forecast be damned, they even said they see some improvement, look at yrc, conway, and landstar all on the russell 1000, all down pretty sharply today. sought trucks are definitely having their troubles, even though they see some gradual improvement in demand. maria? >> all right, matt, thanks very much. and of course this market is rallying for a third straight day. does it suggest a broad move higher in the major indices is to come or is this just a bounce and a summer correction? breaking down the charts for us now, "tick by tick," jordan kotick, global head of technical analysis at barclays capital. jordan, what do the charts tell you today? >> well, maria, a lot of obviously fascinating things going on. we're going to start off today by looking at the stock market from an external perspective and an internal perspective. we're going to start by looking at china versus the stock market. and here's why the chinese stock market is so crucial here. the first thing you'll notice is that when the stock market went to the down side in the earlier part a couple months ago as you can see the s&p made a new low here. the chinese stock market bottomed out in the fourth quarter. so it was the chinese stock market that drove the stock

market to the top side. similarly, what you can see now is that the decline we've had in the stock market in the month of june was not accompanied by a decline in the chinese stock market there.e. so just as the chinese stock market pulled out the market from its low here and dragged it higher, so too is the chinese stock market still going to the top side. ultimately, that's a bullish sign because what that tells you is leadership international, it's coming from china, and those stock market leaders like the shanghai composite are still going higher. that's why this move we've seen in the summer is ultimately a correction. >> well, you know what, you look at china, you had a real rally overnight in asia but you wonder if that was a take on what happened in wall street yesterday. intel setting the tone last night. you've got earnings tomorrow out of the financial sector, jpmorgan, and then citi and b of a on friday. do you think this is a short squeeze, or is there anything you can read into this rally today that gives us any evidence that in fact this is solid and

not just a short squeeze?? >> sure. a couple of things. if the chinese stock market was going in a reversal over the last couple days then you'd be right to make that kind of relationship. but china has been going higher for months now, so it's not related to what we've seen short term. but to the question is this the bounce or is this the beginning of the next leg higher, here's what we want to watch. externally, of course, the leadership is there through china. internally, what i've learned from my good friend ralph akampu rachlt there is nothing more important to a stock market than breadth. what we need to see if this is really going to go to the top and the summer squeeze is over, breadth has to contribute. so let's look at the advance-decline line here on the stock market. you can see very clearly here big levels in the breadth market that has to go to the top side. what you saw recently is the breadth lagged here and the market turned down, breadth turned down, and what we're seeing is that the breadth is starting to bottom out here.. what we need to see is a breakout in the breadth. volume is seasonally adjusted. it's kind of quiet in the summer. if breadth can start to kick in, if it can start to continue this

is a bull market to get on board. be cautious here, it's not time to jum on board, but we should have an answer within a week to ten days. >> what you're saying is you don't have any evidence in terms of breadth right now that this rally is for real and long-standing? >> no. and if this is the real next leg higher, and we are bullish equities despite the summer move, we would expect breadth and volume to start to kick in. it's too early yet, we're seeing it improve but we're not breaking out. so there's room to get on board, we just don't have enough evidence to say the summer squeeze is done.e. >> all right, jordan, thanks so much. jordan kotick with the latest there. with the market up 253 points, certainly feels like this market has legs, at least for today. but interesting to note what jordan just said. we're going to be watching breadth. let me take it over to my colleagues at headquarters. david faber, sue herera standing by. looking at this market, do you see any evidence of breadth? sue, i know you're very often looking at the internals of this market. what do you think? >> i agree with jordan. we don't see all that much in terms of confirmation of breadth, but what we do see is that traders are starting to take on a little bit more risk.

as a matter of fact, they seem to be embracing it right now. and part of that is linked to intel. but if you look at the currency market, you usually see risk trades put on in some of the key commodity currencies. we saw that today in the canadian dollar, in the australian dollar, in the euro, and that to me signals the fact that the repricing of risk is going on and investors are taking a look at risk in a different way and willing tome brace it. whether or not they do that on  long-term basis as jordan alluded to remains to be seen, but today certainly risk was back in favor with investors, maria. >> david faber, it's certainly a positive to believe that this market is once again trading on fundamentals, and it does appear that the fundamentals of better than expected numbers from goldman, better than expected numbers from intel, some anticipation going into the jpmorgan, citi results, has people putting money to work. >> yeah. you know, certainly i would caution many people. we're very early in earnings season. we'll ultimately see what is

said by so many other cops. but no doubt that goldman number yesterday giving some confidence to the market, maria, and last night and then this morning intel. as well i would point out something we talked about this morning on "squawk on the street" and have mentioned a number of times during the day. the master trust data from the credit card companies, american express, capital one, jpmorgan, discover, all reporting today that monthly data. the delinquencies at 30 days started to actually come down as a percentage of the portfolio. chargeoffs were a bit less. and both those numbers were much less than had been anticipated. we saw may higher than april. so june being lower is being viewed positively for those looking for signs in the consumer sector so important to our economy of perhaps a bottom if not a turn. we'll see ultimately if that is borne out. we've all learned during this last two years not to judge anything by one earnings report or one month. >> it is interesting, maria, that the market is able to rally in the face of an almost $20

move to the up side in gold and a better than $2 move to the up side in the oil market, which is somewhat counterintuitive to the big rally we're seeing in equities. >> you make a great point, sue. let me bring jordan kotick in on that point as it relates to -- everyone's asking honwhat do i do with my money right now, how do i put that ton of cash on the sidelines to work in an environment where we could be dealing way short squeeze, we could be dealing with an idea that perhaps we've seen the worst in terms of fundamentals?? you're looking at currencies. >> heading into the summer months on the foreign exchange volatility starts to diminish. first trade idea we have clearly selling volatility and foreign exchange on a two or three-month dollar-swiss is our favorite but selling volatility in the summer months removes you from the stock market game as that works itself out. that's the frs thing to notice. as with the stock market itself remember if we look at as we have here the three-month volatility, three-month volatility is heading to the down side. that's only going to continue.e. so selling vol right now in the foreign exchange market.

that's how to play foreign exchange because at the end of the day the dollar has done nothing for a couple of weeks. it's all been the yen. nothing but chopping around. summer's a low vol time, europe goes home, they go on summer vacation for the next month while the stock market sorts itself out. >> jordan kotick with the latest there. we want to bring your attention to the other story we're following tonight. sources are telling me we are going to have a resolution on the cit liquidity crisis imminently. the stock right now is halted. news pending. we are waiting for information out of washington. here's what we know. there is a debate going on, basically about whether or not cit should have access to the ftic's programs. of course the company became a bank holding company at end of last year and assumed it had access to the programs for the fdic. so far it has not had access. sources are telling me that the c imt t is in round-the-clock discussions with all three financial regulators, that is

the fdic, treasury, and the federal reserve. at issue when and if cit will have access to the fdic's temporary liquidity guarantee program. that is the tlgp. it was supposed to be a component of the company's becoming a bank holding company last october. to refresh your memory, this program allows the banks to roll over maturities. it allows the company to buy the guarantee of the fdic and issue bonds of up to three years in maturity. you pay for that 100 basis points a year. cit so far the only institution that got significant tarp money. they got $2.3 billion in tarp funding. and yet it has yet to have access to those programs. regulators are mulling a solution while the company is doing extraordinary things to keep meeting payroll. sources say a package needs to be finalized imminently and that is why i'm hearing the stock is halted. the company will struggle severely if it does not get that aid. it will leave 1 million small businesses unable to meet payroll. sources telling me that that

tlgp application which was filed for c tachlt was initially looking for $10 billion and then an additional $5 billion. cit again so far the only public company serving that middle market, although some would argue that there are plenty of regional and community banks also providing that credit to small to mid cap companies. cit is the 20th largest bank when measured by assets. but when you measure lending and leasing to the business community, it's actually the fifth largest bank. my sources say a decision from washington is imminently. we will wait to watch when in fact this stock opens for trading again. but it is halted pending news. i suspect we could get a resolution to cit's issues by the close of business today. we will see about that. if not certainly tomorrow. we've got 35 minutes before the closing bell sounds on wall street. it has turned into a busy day here. up 246 on the industrial

average. back above 8600. nasdaq at 1859. and we've got the latest inside the rally coming up. we'll look at the sectors behind this upswing, break down all the key market drivers for you. first take a look at the bond market, where interest rate stands right here. you're watching "the closing bell" with 30 minutes before the close on wall street. not a lot of activity. you read the news. and yet, some people need to sell and other people want to buy. this is a moment of challenge and opportunity. fortunately, re/max agents have the experience to help you meet the one and recognize the other. thanks. because the future's counting on us. nobody sells more real estate than re/max.

in these markets, i'm glad i turned to fidelity for an annuity with guaranteed income for life. that's right, guaranteed income for life. my annuity from fidelity means my retirement income is safe.

it's guaranteed, no matter what happens. if guaranteed income for life sounds good to you, do what i did -- let fidelity be your guide. call fidelity at... for details about guaranteed income for life.

welcome back. we have a better than 240-point rally in the dow jones industrial average. everything really heated up last night after intel reported better-than-expected earnings. you heard that here on "closing bell." that's not the only stock really driving the action today. also fueling one of the broadest rallies we've seen in months, intel at a nine-month high. matt nesto's looking at what else is underneath this move. matt? >> yeah, it is interesting because jordan had just showed us some of the rallies. if you just take a look at the plain vanilla numbers of the advancers versus the declining index on the big board, there you go, 2,700 to 330. so it's 9-1 positive. if you do that in ratio form you get a .93 in the advance-decline ratio. and one thing, now that we can actually show the advance-decline ratio over the past month, is yeah, we have had these broad days like this. you can see that with today up around 92 this is a level we haven't seen actually statistically on an

advance-decline. it's the best day since march 23rd of '59. so we'll call it 3 1/2 months ago. the last three or four times that we've had a 90 handle, if you will, on the advance-decline ratio, the next day was down. and three of the four times the next day was down 2%. that's going to be in late may and then in the last time we had the big one, which was march 23rd. so what is going on here today? it sure beats working, doesn't it?? the best three-day advance, now at 6% for the s&p, since march 12th. the best single-day advance for the s&p since may 18th. all ten sectors are positive, and all 24 industry groups are higher here today. it's the inverse hourglass, maria. we've talked about health care equipment and services and drugs leading in the defense today. it's all about cyclicals and growth. back to you. >> all right, matt. thanks very much. we're watching this market move, and we're getting different base

on whether or not -- joining me on the floor to talk about that is arthur cash-in at ubs financial services. along with annual valdes, vice president at hillard lyons. nice to have you with us. are you seeing conviction for this rally? you think this is for real?? >> you know, it's not heavy volume. more volume than we've seen lately. if you look at the volume, the up volume's 800 million, the down volume s 440 million. but you're still not seeing the conviction you'd like to see on a day when it's up 239 points. >> under a billion shares with only 30 minutes to go is not so impressive. >> but i think it's probably short covering. it's not a stampede. the shorts are desperate.. they have to pay up. so you're getting a disproportionate price move in relatively light volume. on friday the american association of individual investors said nearly 55% of the people they surveyed were bearish. everybody and his sibling bought into this so-called head and shoulders negative move. none of it's worked, and that's why monday, yesterday, and

today, they're driving the shorts in. >> maybe. but you have to ask yourself how long could the short covering rally go? just because it's short covering doesn't mean it's not going to last two more weeks. >> well, what happens is it feeds on itself. okay? you stand back and you say they're not going to get me, i'm not going to cover my shorts, i can see this is a short covering rally, and they cause you more and more pain. the market always does whatever it needs to do to embarrass the most people. so it will keep doing it. >> what turns this around? if we get some poor numbers tomorrow and friday in terms of fundamentals, do you think all bets are off, or what? >> you can see the market as fast as it went up go down the same direction. another thing i'm watching is oil. oil up 22391 today. that led us in the last three months. that was one of the big factors in our rally. over $60 a barrel. that can keep the market higher also. >> we'll see what that does to countries like russia and the mideast and certainly those oil-rich nations.

financials have been the leadership group. we are watching the financials trade higher. citi up 10% today. jpmorgan up almost 6%. jpm reports earnings taed tomorrow, citi on friday. we're going to check out the financials, what do they look like now, should you be putting new money to work. dow industrials up 238. we're back in a moment on "closing bell." has the fastest hands boxing has ever seen. so i've come to this ring to see who's faster... on the internet. i'll be using the 3g at&t laptopconnect card. he won't. so i can browse the web faster, email business plans faster. all on the go. i'm bill kurtis and i'm faster than floyd mayweather. (announcer) switch to the nation's fastest 3g network and get the at&t laptopconnect card for free. an eleven sixteenths wrench over here? here you go. eleven sixteenths... (announcer) from designing some of the world's cleanest and most fuel-efficient jet engines...

to building more wind turbines than anyone in the country... the people of ge are working together... creating innovation today for america's tomorrow. thanks! no problem!

welcome back. dow jones industrial average up 237 points today. we are about 20 minutes away from the closing bell on wall street. and financials and technology are leading the way on the heels of better than expected earnings last night from intel, yesterday from goldman sachs. let's talk more about the earnings season, particularly with the financial services company with jpmorgan out with its second quarter numbers tomorrow. citi and b of a out on friday. we have more on that right now with anton schutz. he joins me now. portfolio manager of the burnham financial funds. along with tom brown, ceo of bankstocks.com on earnings central. good to have you on the program. first would you put new money to work in this market? anton. >> absolutely. there's still many, many stocks out there that are trading at huge discounts to what the potential earnings power will be down the road.

and there's no doubt that even though these stocks are up sharply from the bottom in march they're down substantially from where they were as little as a year ago. >> your fund was named the top performing u.s. equity fund for the last year.. congratulations on that. you own jpmorgan, bank of america, or citi? >> indeed. i own all three of them. jpmorgan being the biggest position of the three. and bank of america following, with citi being the smallest of the three at this point in time. >> what kind of quarter are you expecting out of jpm tomorrow? >> i think jpmorgan will see some great, great strength in mortgage banking and certainly on the equity underwriting and bond underwriting. goldman sachs set a bar, i think jpmorgan will follow with very strong numbers there. unfortunately there, will be a lot of noise reflecting tarp repayment and, you know, unfortunately the credit card business isn't going so well for jpmorgan or anybody else. the numbers are better than others. but nevertheless. >> tom, how do you see it? >> it's a bull market, maria.a.

we are -- >> that was quick.. three seconds ago i thought we were in the worst financial crisis anybody had ever seen. >> well, there's a difference between the lagging effect of the financial crisis and what the stocks are reflecting. >> okay. >> the financial stocks went through just the opposite of what tech stocks did in the late 1980s. that was a bubble that burst, and this is a sinkhole that we're finally beginning to fill in. >> do you own either of the companies reporting, jpmorgan tomorrow, b of a, or citi on friday.. tom, do you own those stocks? >> no, we don't. >> how come? >> there are some other smaller companies like fifth third, boston private, two of our largest holdings, that we think offer even more up side potential. but i think all the bank stocks -- not all the bank stocks. all the large bank stocks are going to continue to do quite well. >> because i'm asking you for the reason, obviously, how come is because we've got earnings out tomorrow. i know you're a financial services investor. is there something special to those companies that is causing

you to take to the sidelines? >> no. but profit private is up 10% today. i think the others are up about 5. so i like the trade-off. >> let me get your thoughts, anton, on cit group. i know this is not a name you necessarily follow. but broadly speaking this is a lender to the middle market. the stock has been halted. i'm being told from sources that we are going to get a resolution from washington in terms of financial aid imminently.. and of course at issue is whether or not cit is going to have access to the fdic's programs. it assumed it did ever since becoming a bank holding company last year. what would you do now with cit? how do you see that situation?? >> well, without a lot of details hard to give good advice. but i believe washington will come to a resolution here. i think the ekd holders may be not in great shape. i suspect some conversion maybe of preferreds. $5 billion of preferreds out there could be converted to common much like the banks. but i'm not sure equity holders will be well taken care of in this situation.

>> tom, what do you want to avoid in this environment? >> there are still regional banks, banks with about 5 billion in assets to 20 billion in assets, where they have as much as 30% to 50% of their loan portfolio in commercial real estate. so those are the banks that are still going to feel some great effect. they may not have enough capital. so those are the ones that we're avo avoiding. >> all right, gentlemen, great conversation, we appreciate it. busy day here with this market trading higher. we hope you'll come back after the numbers are out in financial services so we can get you to weigh in on the quarter. breaking news right now. scott cohn has the latest on the madoff saga that continues. scott. >> maria, cnbc has learned that there is apparently a big plea coming up in the madoff case. the outside auditor david frieling who was first charged with six criminal counts in march. the government has now filed an intent to file an information. what that means is frieling is expected to waive his right to an indictment and that usually is a precursor according to legal experts of some sort of a

plea. we don't know if there's a plea agreement in terms of cooperation, but clearly it looks as though an important witness is about to turn in the madoff case.e. that being david frieling, the outside auditor. maria, back to you. >> scott, thanks very much. scott cohn, an important developing there in the madoff case. we'll continue following it. and as scott has new breaking developments, of course, we'll go back to him. meanwhile, we've got the dow jones industrial average up 250 points. 8610. you've got the banks up between 5% and 12% on average. technology up between 5% and 8%. major tech names seeing a real increase on the heels of numbers. jpmorgan, citi banks of america all set to report this week. general electric, another big one coming out on friday. stay with "the closing bell." i'm going to take you to nerve central at cnbc headquarters and our earnings central desk. back in a moment. taking its rightful place

in a long line of amazing performance machines. this is the new e-coupe. this is mercedes-benz.

welcome back.. it certainly feels like we're back in the 1990s bull market pf we've got spongebob behind us there celebrating ten years of

pop culture. nickelodeon is. and this is the viacom post. so viacom owns spongebob and -- very nice. thank you very much. a lot of people around this post of viacom.. this market here is on fire today. up 248. the question of course is whether or not this is a short squeeze or actual fundamental l demand and real money coming into this market. we're going to take a look at that right now. and take a look at under the radar stocks. alliance bernstein holdings getting a boost today, being upgraded on this session by standard & poor's to a buy from a hold. s&p is taking its 2009 earnings expectation and the price target on the stock higher. that is why we've got a 7% rally in the stock. the analyst is telling clients the company's margins will benefit from recent price controls and cost cuts. shares of janus capital falling after the company reported second quarter profits and continuing operations of 10 cents a share, that's down from 40 cents a share a year earlier. the firm also saying assets

under management were down to just under $132 billion. that's down sharply from 191 billion. shares of beemus moving higher after they took -- the packaging company boosted its full-year guidance to 1.68 to 1.71 a year. bring back sue herera and barclays' jordan kotick looking at the charts here. jordan, you said you have not seen any real evidence of breadth in terms of evidence thinking that this market actually did have legs. art cash-in actually made a similar point, as did alan valdes, looking at volume. under a billion shares, and we've got 60 minutes before the close of trading.g. your first question, maria, is it a short squeeze? the answer is yes. it doesn't mean a short squeeze cannot evolve into something bigger. we've seen the short squeeze.e. it's unfolding. what we want to watch is not just the stock market, but to wacht bond market.

it's always one of the best leading indicators because it never lies. global fixed income is offered in the uk germany and the u.s. treasury yields after a very aggressive move to the down side they're starting to roll higher that's what you saw when stocks were bid before.e. is this enough to suggest this move we saw here is back in place? this isn't enough yet. it doesn't mean we're going to the highs, but it does mean this is the most important market to watch. if risk is coming back into stocks beyond a short squeeze it will come out of the bond market. watch interest rates the next week or two. that will give us a really clear sign. >> that's an interesting point, actually. sue herera, are you seeing money come out of other areas and actually find its way into stocks? >> in some cases that is the case. i was very interested in jordan's ten-year chart because we've seen basically a three-day sell-off in treasuries right now. the ten-year is the one we look at and the question is whether or not the safe haven play or the treasury move is starting to unwind in a significant way.

it may be. the proof is in the pudding. but the fact you had a three-day sell-off, the last time i checked the ten-year was down almost a full point in today's trading session. whether or not that goes back into equities or not i think is one of the questions because you do have some of the traditional inflation hedges also moving higher.. and that's what's kind of odd about the whole thing. i mean, the treasury market is one thing. but then you also see the oil market, the gold market, some of the traditional inflation hedges in play as well. which is one of the -- i don't know if jordan can address this. but it's one of the things that i'm having trouble with in terms of the puzzle pieces, jordan.n. >> to maria's point of the short squeeze you also have the short squeeze of course in the energy market which has collapsed, heating oil, rbob, crude, that is getting squeezed. toward inflation, nominals, bond absolutely, but it's the break even and down the curve, break evens go higher as the stock market goes higher. they fall as the stock market goes lower. another area to watch outside of outside yields is the break even market. is the market starting to price in inflation again? watching the break even curve

over the next week or two with breadth, with the bond market, that will help us distinguish whether this is just a bounce or whether this truly has legs. be careful. a lot of people are talking about a bull market when thatwhat they're really looking for is the buy and hold market. this is not the buy and hold market, but we need to distinguish whether the next leg higher has begun, and we should have an answer soon. >> we'll see. this is the best day since april 9th. if it gets affected by some of the earnings in the next couple days as well. we've got to throw the fundamentals into the mix because any bad number from some of these bellwethers coming out tomorrow, friday, may very well reverse this action. we will see about that. sue, jordan, we will see you a little later. spongebob squarepants behind me, feels like 1999 again. we've fwt the dow up 251. we'll take a short break. "fast money" final call coming your way. we've got the inside track on a few oil services names you'll want to know about as hoyle hovers around $62 a barrel. we're back in a moment.

you have questions. who can give you the financial advice you need? where will you find the stability and resources to keep you ahead of this rapidly evolving world? these are tough questions. that's why we brought together two of the most powerful names in the industry. introducing morgan stanley smith barney. here to rethink wealth management. here to answer... your questions. morgan stanley smith barney. a new wealth management firm with over 130 years of experience.

welcome back.. time for your "fast money" final call. despite oil's move higher today my next guest says the big money may lie in equities, in the energy arena versus the commodities themselves. he's "fast money" trader joe terranova, chief alternative strategist at vertus investment partners. great to see you. tell me why you think you want to be buying -- what, the oil service names or are you talking about the large producers? >> good to talk to you, maria. here's the trade. forget about oil futures right now. that trade has passed. that was the second quarter trade. what you want to noex on is the energy equity names, specifically the oil service names. tonight what's important, maria, no one's really talking about this, china, the global economic stabilizing force in the first quarter, they report gdp. that's critical. tonight. and also industrial production. so if we get strong numbers out of china tonight, you will see an extension of this entire move higher that we are seeing in the equity space, and that goes into the energy equity space, where i don't want my exposure in futures, i want it in those

actual energy companies. >> now, basically, china was stockpiling oil, right? it wasn't necessarily end demand that was pushing china to buy more oil and use the facilities of some of the companies you're talking about, but more so just the stockpile for a rainy day. >> clearly, what china is doing right now, they're acting upon a policy where they want hard physical assets. they want to move away from the dollar as their reserve currency. they want those actual hard assets, and that's what they're doing. they're acquiring the raw material, the resources that they need to grow. >> who is the best positioned? >> who is the best positioned right now in the oil service space? i think if you look at schlumberger, el barko, those are the names you want to look at going forward. and longer term you can actually own some of these natural gas names like apache, sto, eog, i think you'll begin to see those names begin to work soon. >> joe terranova, we'll see you

tonight. coming up "fast money" tonight if you missed the intel rally the traders are giving you a second chance to place your bets before ibm, citi, and b of a earnings. plus the top internet analyst with the setup for tomorrow's big mover, that's google, it's all coming up at 5:00 with melissa lee and the traders right after "closing bell." meanwhile, here on "closing bell" we've got the closing countdown minutes away. after the bell is now the time to buy tech? intel's strong earnings helped boost the market today. can wall street expect more good things to come in the sector? we'll have the investment angle for you. 4:00 p.m. eastern right after the bell. the world'scer) leading companies

thrive on collaboration with the world's leading companies. together, we're helping to shape the exchanging world. nyse euronext. powering the exchanging world.

bull market or bear, traders are always hungry for ideas. they find them at td ameritrade. trading's all about strategy. and strategy's... all about information. so: i start my trading day... with td ameritrade's morning perspective. that's interesting... or, look at this... i can mine their weekly webcast for ideas. this is what i need. of course, ideas are just the start. so now i can drill down. heat mapping... heat mapping shows me where the money's moving. 2,500 stocks... one quick glance. cold... cold. hot! right there. look at this: pattern matcher... pattern matcher spots technical patterns, automatically. wow, look at that. look at that head and shoulders right there. it's like pattern radar. pattern x-ray vision. plus: this amazing gadget... called the telephone. i can call td ameritrade anytime and talk trades, strategies. anything. that's where the action is. td ameritrade. built by traders for traders. announcer: trade commission free for 30 days plus get $100 cash, when you open an account.