we were here today for the u.s. africa business summit. everyone is talking about investing in africa. it was pretty amazing. that was the panel i was a part of with several african presidents talking about the future. pretty interesting. we have the president of rwanda and ghana, which just discovered oil this year. also the president of the democratic republic. it's two little islands. they have about 160,000 people in that country and they have 4 billion barrels of known oil reserves. that's a pretty incredible statistic. thanks for watching. it's time for the final hour of

trade and "closing bell." best buy says it will hire more holiday season workers this year than it did last year. brian dunne would not be more specific about how many more workers. donald cohen and atlanta fed president dennis lockhart said the fed would be able to withdraw monetary stimulus at the appropriate time. they made their comments in separate appearances. freddie mac made sales in about $40 billion in multifamily mortgage backed securities. a rebound on wall street. there is a live picture of the floor of the new york stock exchange. coming back from sharply lower earlier performance. the dow with a triple-digit loss and crude oil up about 5% today. welcome to "the closing bell." i'm maria bartiromo on the floor

of the new york stock exchange. a lot of volatility today. we have the chicago purchasing manager index earlier today. it was worse than expected. sending the market down better than 100 points on the dow jones industrial average. we've seen a steady comeback throughout the day. the gdp was positive, dipping, but a lot better than people expected in the second quarter. let me bring in bob desanni here to look at these charts. >> what's interesting, normally the chicago pmi doesn't lead the market. it's not a big thing normally. we've got the ism number tomorrow. that is the first look how the month did, september did. traders look at that and say it was disappointing, maybe the ism will be disappointing. they are both a purchasing managers report. >> showing us a look into manufacturing. >> right. the important thing is we had great momentum. all throughout the third quarter. >> you are talking about a market that's up 15% in the third quarter. they haven't seen that kind of performance since the final quarter of 1998.

>> how are you going to fight that kind of momentum? that's really important. if you are looking around saying what happened, we were down 130 points, let me give you three reasons that are important and obvious traders have been pointing out to me. this is the last day of the best quarter in 11 years. as maria pointed out, up 15.3%, 15.4%. that's strong momentum. we are only a percentage or two off of the highs for the year. number two, have you noticed the best pair trade of the third quarter? go long stocks and short the dollar. that happened again today. when the dollar started dropping, stocks started rallying. we did have donald kohn who made it clear there was slack in the economy. traders take that to mean the fed will keep rates low for some time. take a look at big stocks here. dollar down. big stocks like commodity stocks, in particular, moved to the upside. freeport-mcmoran moved up here. it's been weaker in the last 15 minutes or so.

same thing with the oil stocks, energy stocks. oil rallied on the weakly inventory numbers we got out around 10:30 eastern time. oil move up, dollar weaken. there are the energy stocks moving to the up side. where are we in the third quarter? take a look. we have 58 minutes to go here. 15.4% move in the s&p. best performance in 11 years. we'll see if we can stay there. as for what was the big movers and what wasn't, a huge disparity, unshally large disparity in the top four and bottom here. financials, materials and industrials. that's the story. everything else including consumer and health care, telecom stocks were only up 4%. you normally don't get this big a range in terms of the sector trade. tradertalk.cnbc.com. let's go around the horn and start with all my friends. we'll start with brian chapman. >> you gave the number for the quarter here. for september, the best one in 11 years. after all the volatility today,

we are down 0.1%. big cap names that are strong right now, amazon.com. 1.6% to the up side. yahoo, two consecutive days analysts raised to the up side. cisco systems was up 1.1%. chips have been strong. philly semiconductor index well off the high. broadcom still really enjoying that upgrade from yesterday from barcap. qualcomm is the one down name. some trouble with japanese manufacturers. they are going to fight a cease and desist order. i want to talk about winn. it's the number two gamer for september. in the entire s&p 500, it's an

incredible mover, about 28% to the up side for september. and molex, upgraded by goldman sachs. >> a powerful rally in oil prices. we are looking at a power fuel rally, you may want to say, because it was refined fuels that led this petroleum complex higher today. oil prices settling above the $70 mark, up over $3 on the session. we did get that report as bob mentioned earlier from the energy department showing gasoline supplies surprisingly fell in the past week. that was what really started the rally going. also, as we had the dollar weaken that, continues to see oil prices moving higher. we got details behind the scenes on the demand picture. the fact that gasoline demand was up 5% versus a year ago, that had some traders' attention. that's difficult comps over 2008

with hurricane disruptions. gasoline supplies being down, keep in mind last week they were up by 5 million barrels. that may be some evening out there. they are dropping and continuing to be cut and dropping. the fact remains that even though traditionally that is support of prices, the reason they are cutting runs, there is little demand out there. that could continue to be weak for the market. we are looking at a third quarter that saw oil prices basically flat on the quarter. a nice rally in the metals, precious metals in particular. gold over the $1,000 mark settling and ending the quarter at $1,008. looking at the rally in silver and copper in particular. what caused this rally, a lot had to do with the weakness in the dollar. the dollar index falling 4% in the third quarter. if you believe there is going to be continued weakness in the dollar, a lot of traders say that is why they believe it's important to are long commodities and long oil, in particular. we are seeing a lot of call

buying in the crude options pit. a lot of folks are anticipating that you want to stay well bid in the oil market. with those costs in geneva on the nuclear talks with iran tomorrow, that's another reason folks say it's good to be long in the petroleum complex. >> thank you, sharon. those talks, there is a deju vu effect. we've done a lot of talking. seems as if the market isn't ramping up in terms of looking for good outcomes. if you look at the quarter in terms of ten-years, yields are down 23 basis points. intraday not much going on. 328 to 332 is the range. we are smack in the middle of it. here is where the action is. you heard sharon mention down 4% for the dollar index. if you look at a chart for the quarter that, translates into a dollar index. that started over $80 and ended up down 3.5 cents on the

quarter. by far the biggest impact. the dollar index is euro centric. if you look why the yen was june 30th, it was at 9636. where is it now? 89.73. the dollar taking a huge tumble on the quarter, exaggerated by today and tomorrow being the end of the half year in japan. >> thanks, rick. we've got the business headlines. taking a look at the other headlines we are following tonight. mortgage bankers association is reporting that mortgage applications are down 2.8% last week. that's despite interest rates on 30-year fixed loans dropping to a four-month low of 4.81%. britain's takeover panel is giving kraft another november 9th deadline. if it doesn't make another offer, it must walk away six months. the fission offer was worth $17 billion. >> chevron chairman david o'reilly is stepping down after

a decade the at the helm of the oil giant. he will be replaced by vice chairman john watson who was widely seen as his successor. talking more about investing in these markets, joining us is chief operating officer at virtex with simon halett. good to have you on the program. let's talk about some of this activity weakening in the last 15 minutes. you were saying why? >> jp morgan financials leading what it down and alcoa also weaker. we are getting interesting gyrations here. >> i think water is seeking its level. my theory is all the consumer demand and early christmas may not be coming yet. look at the real estate and look at your mortgage notes. concerning. >> this is a long time coming. markets are up 60% from the lows in march. what do you think is behind this

optimism? just that which are not falling off a cliff? >> i think we are not falling off a cliff, but are we ahead of the curve? when is the market going to right itself? all the t.a.r.p. money put into stimulate the economy was great as bolstering the stock market, but how long ago were we at 5,000 or 6,000? >> is the market misreading the economy? could the stock market have gotten it that wrong? >> sure. i think this is not a bad economy. nobody really knows what the economy is going to do in the short term or medium term. we have nobel prize winners telling us it's going to be deflation and others inflation. who knows? the important thing is about companies. what appears clear and what the market is starting to pick up is the price of cyclical stocks, not just in the u.s., but globally already discounted a pretty sharp recovery in earnings. it seems to us this is going to be a time that is going to be difficult for companies and

cyclicals are probably not the place to be. >> here is the problem. the american consumer physically has not participated in this leg of the rally here since the march bottom. they've been putting all their money into bond funds. recently we've seen money coming into the stock market now. is the american consumer going to turn around and start putting money in the stock market at a time when you both seem to imply we are near at least a short-term top? >> i think the concern is if they put the money in now, is this going to be another falter where we look the at the market and say the consumer demand and consumer confidence is really falsely up? i think if you are a consumer waiting on the sideline and this is your piggy bank, i would be concerned to put money now when it's been bolstered by big money. >> you have two different styles of investing here. you are looking at quality, growth names, right? overall long term. and actually, larry, you are looking at distress situations. >> i hate to say it. no one likes to say it, but we

are countercyclical. >> are you finding a lot of distressed situations? >> macy's, bed and bath. i'm seeing great opportunities to buy businesses public and private at a discount to assets. >> you think you'll be able to put the investments in there and rehabilitate these companies? >> we want to resurrect. >> where is distress as opposed to retail? >> real estate. unemployment, look at mortgage numbers. i think it's consumer, retail. with fourth quarter upon us, i think the real question is how about china? always look at china as an indicator. isn't china the industrial revolution and the new global economy? let's see if their economy is trending up. >> the problem with that, china is a cyclical market player. you don't like cyclical. would you be putting money into china? >> no. >> he's looking at growth.

>> china is a manufacturing base, but this year china has proven it's all about its savings and using the government banking system to mobilize savings at an extraordinary rate. this year saw china's bank lend an extra trillion dollars on an economy of about $4 trillion. the mobilization of savings it's been able to maintain. >> larry is telling us where the distress is. where is the growth? >> i think the gloet is going to be from those companies that will use their balance sheets to make sensible acquisitions to take their brands out to markets where demand is still growing. i think we'll see a lot of growth through acquisition over the next three to six months as companies consolidate their industries and prove with suppliers and buyers. >> you are being vague here. you don't like china or cyclical stocks. being more specific. where should we be now? >> i like the growth in china. i don't think it's sustainable.

i think what we are trying to focus on is companies like nestle, other emerging markets in china like brazil and central europe. companies that have exposure to growing consumer markets. africa, for example. companies that can get the kind of modest increases in prices that are going to be so rare in a world where distress seem to be happy about the opportunities they see coming over the next three to six months. >> you like non-china emerging markets with global brands like nestle? >> exactly. we are looking at by sectors, companies in consumer staple sector, emerging market banks, and we are looking at some of the smaller, technology-driven companies in the health care center. >> you're cringing. >> it scares me. when i look at europe and deflation and inflation in europe, and zero population growth in russia. the russian oil pipeline, they better add pipelines.

i see china's industrial revolution the way we were at the turn of the century. we are an outsource nation. i want to invest in china. i want to invest in markets that are growth oriented where i'm seeing it down. >> i couldn't agree more. the notion europe was a demographic time bomb, politically paralyzed, just an economic disaster was absolutely prevalent between 1995 and 2005. this is just a time when china doubled its market and germany stock market doubled. it's about the companies. >> this is what makes the market. great to have you on the program. good to see you. we appreciate it. thank you. we'll see you soon. >> we have about 45 minutes before the closing bell. we've been all over the place. down 120 and flat in the last 20 minutes. another 60 points, financials and big, big cyclical names like

alcoa leading the way to the downside here for the last 20 minutes. nasdaq just barely holding. nasdaq now in negative. >> we are zeroing in on the charts next. stocks up this month 15%. even the month of september has been so strong even though september is historically a tough month for the markets. we'll look at the charts. >> plus the financial sectors had a run-up since march. should you bet on the banks? >> after the bell, rising tensions in iran, we are breaking down the four biggest threats to economic recovery.

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welcome back. let's take a look at some of today's research calls. novartis upgraded a buy to hold

by citigroup because of its attractive respiratory portfolio and strong sales outlook. target downgraded to neutral from buy at ubs, which is telling its clients its analysis suggest the retailer is losing shoppers despite its discounter status and the shoppers it is keeping are spending less. >> huntington bank shares upgraded to hold. the regional bank is well positioned for the long term. the september stock market performance overcame a weak fall season. will october be resilient for the charts? good to see you, jordan. welcome back. >> thank you. >> what are you looking at first? let's look at october to see if october is going to be as resilient as september. a lot of doubts going into the month of september. of course, it surprised us on the up side. >> all the bears could do in september was a 5% decline

peak-to-trough. a lot of people think october is a bad month for the stock market because of '29, 1987 and 2008. actually, october is a good month for the stock market. since 1950. here is the data. markets around the world, in the sufrm, in asia and in europe, on the odds of an advance are 50%, 60%. with the exception of asia, it's positive. october far from being a bear market month like september was. it's not a raging bull market, but it is a stronger month for the stock market despite the drama we've seen in crashes over the last many decades. >> in terms of october money moves, we know there is money on the sidelines right now. what's to say that the market is not going to keep ahead of the economic fundamentals? virtually everybody will say the economy remains weak and the market is ahead of it. >> it's our bias. we are going to make this clear, we thing the market leads the

fundamentals. the market bottomed about five to seven months before economic data tends to turn. it's not a surprise that the charts did turn five to seven months ago, q-4 in some parts of the world. overall, money has missed a lot of this move. if we don't get a correction over the next couple of weeks, you get a melt up in the stock market, not a meltdown. cash moves into the equity market. that's why we maintain a bullish trajectory through the end of the year. >> you want to look at markets tied to the price of oil, which is interesting. oil has been rising. it's now back above $70 a barrel. you want to look at russia versus saudi arabia in terms of their equity markets. >> yes. if you look at the entire energy complex, oil, heating oil, they've gone sideways to lower. some of the equity markets tend to be correlated with oil. we have something new in the market. as you see right here, when the

oil market has gone with the rtsi, saudi arabia, this has been the oil market, as well. what's changed is now you have the russian stock market going higher. saudi arabiian stock market going higher and the oil market has gone sideways to down. what you've seen is a change in correlation between some of these markets and the crude oil market. generally speaking the markets that tend to follow energy are following the global trend of stocks. that means the global trend of stocks is starting to trump the general correlation with oil. that is a good sign for stocks. that means things are slowly starting to get back to normal. >> okay. if you were looking at the dollar, where do you want to be positioned if you are expecting the dollar to continue to weaken as it relates to oil? >> in terms of the dollar, the general most liquid currency is also the euro. the exception will be dollar/yen. the yen has been particularly strong. we are strong advocates of a strong yen. we think there is further yen

strength within the dollar and gold to the top. we think there is a lot of good ways to play the dollar here to the end of the year, as well. >> what are you seeing in terms of demand on oil? here we are in an economy, globally speaking that remains fragile. are we seeing rising demand which would explain this move in oil or not? >> one area we look to is the cra cracks, we have heating oil versus crude. the market is at level, traditionally which marked the bottom in the crack spread. when heating oil outperforms crude, it starts to suggest a bottom in stock markets and it's a good sign for the stock markets. the fact we are at this important low in this general area down here, heating oil is likely to start to outperform the crude oil market. that is a good sign for companies. it means there is greater demand for energy and business and economy and a good sign for stocks, as well.

>> jordan, great to have your insights. jordan kotick, barclays capital. we have about 35 minutes with a market under pressure worsening in the final day of this third quarter. looking at my screen, i think money is moving into technology. you've got a lot of red, financials among the leadership group on the down side. >> once again, we saw the dollar rally about 3:00 when we came on and stocks weaken again. that relationship, dollar up, stocks down and vice versa here. tech holding on to financials. industrials weak. up next, charley gas perino tells us why several brokerages about to battle.

with a market under selling pressure, take a look at the widely held names out there. financials are leading the market low with the exception of goldman sachs. stock is up back at $183.75. citi, b of a and wells fargo in the red. you see mostly weakness across the board with the exception of verizon. >> goldman sitting right near 52-week high right now. is the battle of the brokerage

about to heat up? noncompete negotiations between bank of america and bob mccann are coming to a close, bringing him up for the competition. where he might go? charley gaspirino has thoughts on that. he is the author of the big book coming out in book stores this november. >> you can buy it on amazon.com. >> okay. my mistake. >> what's up, charley? >> bob mccann. the story is going to sources close to mccann that any day now they're expecting him to reach an agreement with bank of america where they're imposing some noncompete clause. he used to be the head of the brokerage department which frees him up to do other things. what that other thing is likely to be, because he is still in negotiations, is running the brokerage department for ubs.

that's where the battle begins. as you know, sallie krawcheck is running brokerage at merrill. bob mccann used to work at merrill. his first order of business if he does go to ubs, which is a likelihood, he has been offered the entire ubs america. that's the u.s. subsidiary of ubs. robert wolf runs that now from what i understand. that may come to an end pretty soon. mccann, from what i understand, wants to run the wealth management division. when he does that, then you are going to get a baitle royal for broke errs for top talent and w be mccann trying to poach people from his own firm. sallie krawcheck understands the space here. what she is doing now is she is reaching out, the former merrill

executives, i heard ceos. merrill is a brokerage firm run for many generations before stan o'neill and john thain. and tell them, listen, the culture is not going to change here. we think the top guy should stay. the top brokers are close to people like the former ceo, dan tully, the former ceo. what we have here is both sides gearing up for battle to retain talent. this happen as lot on wall street. big news up-front commissions to get these guys come over. this is where you'll see the big battle go between merrill lynch -- excuse me, bob mccann if he does take that job. he needs to get bank of america, they need a settlement on his noncompete. they are working on that right

now. it pay come to a head today. then it's what jobs -- then he has to reach an agreement with somebody and presumably has been in talks with ubs. what job does he take at ubs? from what i understand he's been offered the entire americas job. owe just wants to do wealth management. >> maybe he'll take over painewebber. after spending all that money to buy that firm. >> painewebber is the brokerage division of ubs. maria snickered at me yesterday when i admonished ozzie grubl coming out with not an intelligent statement. he is the ceo of ubs saying the brokerage division was a noncore assets. >> i did not snicker at you. i have no idea what you are talking about, actually. this completely went over my head. >> you were laughing at me. >> no, i wasn't. >> just breaking your chops.

>> if i knew what you were talking about, i would obviously comment. >> then you would have snickered. okay, that's fine. grubel came out with a statement today and said that the brokerage division is a core asset. kind of reversing itself from the ft article. there will be an interesting battle to come. >> always interesting to hear what you have to say here. thanks very much. dow jones industrial average sitting near the lows of the last hour or so, down about 60. midway between the highs and lows of the day here, financials and industrials leading the market down. >> we've got a lot coming up. shares of google off the 52-week high. is now the time to start taking profits? stock at $494 and change. we'll check out google's prospects next. tdd#: 1-800-345-2550

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>>. >> we are in the final stretch, about 20 minutes before the closing bell sounds on wall street for the day. markets under selling pressure this the final day of the third quarter. a quarter that has seen the markets rise about 15% on the dow jones industrial average. the dow jones industrial on the down side by 50 points. we were positive about about 1:00 p.m. or so. we had a couple of mixed economic reports out today that set the tone. the nasdaq is down 5.75 points, but don't be misguided by that. a number of technology names are on the up side today.

"wall street journal" says the treasuries aimed at toxic assets already raised $1.1 billion so far. s&p 500 down a fraction. down 6.5 points. >> and the public private investment partnership here. time for the "fast money" final call. what are investors say about google now? here to tell us, jarrett levy, senior derivative specialist. google is what, $300 at the lows in march and it's $500 now. it's outperformed not just the overall market, but the nasdaq 100, as well. how much further have we got here? >> it's funny. google is still on everybody's love list. everybody is writing love letters to google. it's going to $600, cramer loves it. about every analyst, out of 20 that follow it, 16 have a buy rating on google. their target is upwards of $600. the median price target is $533. i tend to agree that i like the stock, but i am an options

trader. i believe the only certainty we have is uncertainty or guarantee of it in these markets. one of the ways to play it, the best way i'm going to play it, they've got earnings october 15th, the 50-day moving average of the stock has not been broken since july. that stands at $465. here's the play. i'm looking to buy the $450 call and sell the $460 call against it. it's going to cost about $8.70 to do that. the most i can make in this trade is $1.30. in other words, the difference in strikes minus what i pay. that's about a 12% plus return. to get that in a stock i need a stock to rally $60. i don't know what's going to happen. we've got the nonfarm payrolls on friday. google, a darling of a stock. i think the fundamentals are there. as an options trader, i want to put the odds on my side. >> you are playing in a narrow range between $450 and $460. if it goes above $450, you're

long, is that right? >> long as it stays above $460, i'm good. this thing could come in down to $460, i'll still be okay. >> and you have protection below that. >> the maximum i could lose is whatever i pay for that spread, $8.70 in this case. >> very quickly, these guys are flush with cash. amazon is, yahoo is. there's a lot of talk they are going to make acquisitions. that will impact the price. >> google has been known to do that, right. if they can't invent technology, they buy it. we'll probably see more acquisition m&a with google in the next quarter. >> all right. thanks very much. we close out the best quarter for stocks since 1998. our traders look at best plays for the fourth quarter. portfolio managers for the largest bond firm give us a break down with bonds. and a new drug out of novartis, best trades in biopharma. they are live the at 5:00.

>> we have about 20 minutes before the closing bell sounds on wall street. dow industrial down 50 points. got a comeback under way here. >>s that dako are the banking problems in the past or should you be buying? >> after the bell, bob pozen says washington has it wrong for financial reform.

welcome back. let's take a look at today's under the radar stocks. iconic brand group cutting its full earnings outlook below wall street estimates because an equity offering in june will dilute the shares. and industrial products maker

actuant, stock up 6%. and shanda. >> it seems armageddon is over for most banks. the s&p financials index is up 140% from the march lows, but banks are till working through balance sheet issues, regulatory issues and how they'll structure businesses during uncertain times. take a closer look at the sector. for the fourth quarter with fred lane, vice chairman at raymond james, ron isana. what can you tell us as far as investment banking is concerned related to balance sheets on banks? >> first, we are in a much, much

better environment than they we are a quarter or two ago. i think a quarter or two ago fear was the dominant feature of the landscape. the pull and tug between fear and greed was all fear. now we are seeing people dipping back in, corporations have lots of cash, strong balance sheets. nothing like an economic down turn to free up working capital. now we are seeing m&a activity and seeing an end of what occurred for most of this decade which where private equity was taking the place of the public equity markets for smaller capitalization names. we are starting to see a lot of activity in smaller names and starting to see a lot of ipo activity. this is going to drive activity at the brokerage firms and classic investment banking firms strongly. it's going to help the bank. i think banks have low cost to capital and lending prudently. i think the spreads are high. the results out of the financial services companies are going to be strong. i also think based on what you

just said, i think that's already in the stock prices. i think the stocks have traded almost ahead of, well ahead of performance. >> i guess the issue is, ron, the problem is you are talking about a much smaller industry going forward. they are not going to have the leverage and larger balance sheets they had and we saw 1 1/2 years ago. are we looking at a different valuation model? >> i don't know. i wouldn't be so sure that's necessarily the case. banks among the majors are bigger than prior to the lehman crisis with all the consolidations taking place at the top. they are trading aggressively. remember goldman sachs is now commercial bank holding company and so is morgan stanley and the others now. they are making money on spread trades, making money on propriety trading and making money a lesser degree than last year, but making money on underwriting. those businesses are doing fine. i'm less concerned about the fourth quarter. i don't think anybody would trade bank stocks for that.

i think as was said, they already reflected the remainder of this year. i think there are a couple of key questions that remain some what unsolved. what's the commercial real estate liability for regional banks? will the fasb, federal accounting standards board continue to insist large banks take their offbalance sheet liabilities and put them on balance sheets in january? which could be problematic. on a secular basis i'm bullish on banks and financials in general. i'm waiting for a correction that is somewhat more meaningful than what we've seen to get back in and buy. >> fred, you say there is a split between traditional banks and brokerages when it comes to stock prices. tell us about that. >> goldman sachs is trading 2.1 times book value. that is a full valuation by anybody's historical measures of a brokerage firm or investment banking firm. of course, all these organizations have balance sheets and use them

aggressively. that bifercation is not a good one. morgan stanley sells at 1.1 times. i think if you look at most of these, the ones that are underwriting in deal driven tend to be trading close to their 52-week highs where as bank of america and ubs and jp morgan are trading at only about 75%, 80% of their 52-week high. investors are looking at goldman sachs and morgan stanley being the beneficiaries of deal activity and underwriting activity to a greater extent. >> how about the universal bank model? is that dead at this point, do you think? >> i personally think it's dead. i think the exception will be jp morgan. i think jp morgan will continue to be a big player in the jechlt banking side and goldman sachs is the universal bank. i think the facts are that the competition is less out there in terms of using your balance sheet, i think pricing is going to be good for investment banks

in terms of fees. we, frankly, have an ulgar system. >> which banks stocks would you put to work now? >> i want to get back in citi and bank of america, jp morgan, wells, u.s. bancorp. in my newsletter this morning i talked about huntington bank as a catalyst or turnaround story with a catalyst that is something i'm looking at getting back into. >> fred? >> i own preferred stock in u.s. bank and deutsche bank which i bought in march. google at $285. i sold too soon. >> google is not a bank stock. >> i know. i'm not a big proponent necessarily. personally, i make no recommendations on stocks, obviously. i'm not a proponent buying these stocks right now. i don't think there is a rush to do it. i would like to see the economy improve and employment numbers start to improve.

that's the time these things will take off. for the long run, these are all great stocks. >> thank you, gentlemen. good to talk with you. fred lane and ron insana. market way off the lows of the afternoon. >> interesting day. they tried to take them down after 3:00. the sell-off wasn't impressive. now it's slowly swinging back up here. tech sktor has been one of the main drivers behind the market rally since early march. what is ahead for tech in the fourth quarter? !e!e!e!e!e!e!e!ee

welcome back. let's look at some of the most widely held stocks. all over the map. alcoa was weak. the material group has been up and down. walmart has been flat throughout the day. tech stocks led a nice rally earlier in the day. some like cisco are positive. they are some of the widely-held

tech names here. ibm has been good here. pivoting around that 120 level for quite a while. apple at $185, you know the story about apple. we are at a new high on apple. >> what's technology up year-to-date, about 40%? huge, right. technology is the winner on the year. >> morgan stanley high tech index at 360, it's now 540. 50% gain. >> nasdaq up better than 50%. can technology keep outperforming in the fourth quarter? let's get to the silicon valley bureau chief jim goldman. he's on it. >> good evening to you. you want to know the power of the tech sector. today's trading is a perfect example. the dow starts off higher, plunges deeply and on the strength of companies like intel, oracle, cisco and others, earlier the entire market stages a dramatic comeback. rallies like the one we are seeing today can be fleeting. that can't be said for tech knocks this year.

big cap tech can't fall out of favor. as we head to the third quarter season, it seems optimism is gaining momentum. others like google and apple, as well. even though both of those have turned negative. ftn is out with a report this morning confirming a 10% to 15% quarter to quarter jump in motherboard shipments and user demand for desktop pcs seems to be picking up in emerging markets and stabilizing in developed ones. among the chip makers, i supply with a market improvement from the 23% decline it predicted. aside from intel, cypress, nvidia and xilinx, they are worth looking at. real question is whether this rally has legs or has gotten ahead of itself. that's why earnings in a couple of weeks or so important this time around with a recent round

of upgrades. the street still thinks this rally has room to ride. back to you. >> thanks very much. the closing countdown after this short break. >> and the quarter is ending. we'll give you a rundown. after the bell, 7-eleven spearheading a campaign to get congress to prohibit what they deem to be unfair credit card practices. the ceo explains how much those fee are eating into profits. national car rental knows i'm picky. so, at national, i go right past the counter... and you get to choose any car in the aisle. choose any car? you cannot be serious!

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