tv Closing Bell CNBC February 16, 2012 3:00pm-4:00pm EST
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the worst performers, chrysler, dodge, jeep, ram and jaguar. >> we are still on track for our best day in two weeks, aren't we. >> the "closing bell" is next. these puns are unbearable. sorry. today, on the "closing bell," the bulls and the bears. investors take comfort in upbeat housing and jobs data. but will a new warning from movies cast a shadow on wall street. we zero in on the outlook. profiting from the secondary market, we look at alternative weiss you can boost rirns on this special edition of the "closing bell." >> and we're into the final stretch. welcome to the "closing bell." hello, everybody, i'm maria bartiromo live from second market trading floor in new york city.
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market rallying on wall street today. we're talking about alternatives for investments. we're looking at facebook and anticipating an ipo. what the stock and company has been looking at in terms of valuation from this trading floor. we'll also talk about that, and a whole lot more of what second action market has been like with barry silver. he's coming up in the next hour of the clo"closing bell." let's get to my partner bill griffeth. >> in the home of the first market, as it were, maria, hi, everybody. here's what's happening right now. the rally started right out of the gate this morning. we haven't looked back for the most part. it's a pretty broad-based gain on the street today. financials, technology, materials, even utilities are up sharply today. the dow and nasdaq are on track to finish at multi-year highs at these levels, near session highs right now. we'll see what's prompting investors to shrug off the ongoing concerns in europe in
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today's session. you'll see the rally first thing this morning, we had economic data out this morning that was good. we've been following the situation in europe, where the ecb bond swap, looks like it's going to become a reality. the dow up off the highs of 12,908. less than 100 points from 13,000. nasdaq now at 2958, at levels we haven't seen since december of 2000, and the s&p's at about a four-year high at 1357. so we're back above that 1350 level. here's bob pisani with kind of a recap for today. it's also options expiration tomorrow. >> that's right. if we ever find a resolution to greece, if we ever, and big ifs, mario draghi and mario monti are going to be big factors here.
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mr. draghi has maintained, don't involve me in all this stuff. we have to get the disbursements on the austerity agreements, then, maybe, maybe, all of a sudden we have reports today that in fact the ecb will participate in a bond swap. the simple fact is, the markets took this to say, mario draghi are saying, we're trying to tie this in a nice little package, giving impetus to the people on monday to get closer to some kind of deal. he's switched things around a little bit. he said, wait a minute, i'm not a part of this, until we hear from the private sector, i'm out of it. now he's back in it. >> now he is intervening. >> absolutely. we started off quiet. all of a sudden, boom, bill was right, that was about 11:30 when we got those reports. now i'm impressed. look at this.
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the market leaders, bill. materials, technologies and financials all moving up. once again today, i know it makes you crazy, but greece moved the markets. >> we'll miss it when it's gone. but not right now. thanks, bob. see you later. >> thanks. >> maria? >> guys, thank you. we've got a market up in the triple digits here. jackie has that part of the story. over to you, jackie. >> we have a lot of stocks in positive territory today. let's start with microsoft. passing its 2010 high of $31.39 per share. if it closes above that price, it will hit a four-year high. trading with very heavy volume, already 59 million shares traded. the best stock in the dow today and third best performer on the dow this year, up 4.3% right now. cvr energy announcing a tends offer through one or more of the affiliated companies for all the outstanding shares for stocks. they'll get 30 bucks a share in
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cash, plus contingent value rights equal to the value that the company is sold for in excess of $30. so this one up 6.7%. and really interesting, shares of chicago rivet machine company, ticker cvr, they saw a spike on this midday following this report. the company's not related at all, sheer ticker confusion here. groupon as well up today after announcing it's testing a in you program called groupon vip. the subscription cost $29.99 a year and provides early access to deals as well as deals that closed out or sold out to the regular users. up more than 4% there. back over to you. >> all right. thanks a lot, jackie. of course, you mentioned groupon. we've been looking at huge moves in social media. let's talk more about the second market here where the firm is announcing the launch of a new program to provide shareholders with secondary liquidity.
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liquidity on the second market. a lot more on that later. we know where the liquidity has been in technology for those companies not yet public. we'll talk about what other tiers we might see trading here in terms of companies that are private. more on that coming up. as far as staff, delivering $8.7 billion in trades last year. the firm has 85,000 market participants in 2009. big growth there. since the launch of the private company market, this firm has recorded over $1 billion in transactions in private stock. we'll talk with some of the firm's analysts later on in the program, including a special interview with barry silver, that's coming up live today from second market. bill, over to you. >> maria, back to stocks in a position to post gains for the week with their surge today. let's go inside today's market with the "closing bell" exchange. our real estate correspondent diana olick is in washington.
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but jon, if they didn't own it, they wish they did. >> the action, a lot more normal today after yesterday's crazy spike. and the news today is a new version of os-10 mountain lion. here's what investors should think about as far as this news is concerned. two things, one, china. tim cook pointed out a couple days ago that max sales in china doubled last fiscal year. this is clearly targeted at that. it's the iphone pulling people to the mac. they've integrated more iphone features into the mac. also, new chinese language and chinese service support in the mac os. the other thing is cloud services. they've got icloud built into the mac, messaging, the imessage capabilities coming over to the mac platform and boosting the mac app store. they try to see if apple can
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continue its momentum. >> getting ready for the spring selling season in real estate. but we've had mixed data on housing rates lately. what's the outlook for spring comes up? >> spring is going to come down to two things. it's going to come down to jobs, and it's going to come down to consumer sent the. we got housing starts up for january. we learned that today. but it was really on the back of multi-family housing starts. that means a surge in rentals. there's a demand there, that's where they're building. single family came down a bit, not a good sign. mortgage delinquencies dropped in q-4. that's a good sign. but we still have a huge pipeline of distressed properties. as we go into spring, it's going to come down to that consumer who's starting to feel a little better about the economy. it's going to depend on what local market they're in, what they see in prices around them. and of course, if they have a job, maybe they'll say now is the time to get in when mortgage rates are at record low rates.
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there are a lot of programs out there trying to help with the mortgage delinquencies and foreclosure problems. it's going to come down to the spring if consumers feel like they're ready to jump back into the waters. >> oh, boy, spring, i can feel it already. thank you both. see you later. as news warrants here. maria? >> bill, thank you. let's get to rick santelli in chicago with the details on fixed income today, with money moving into equities. >> absolutely, maria, we see a nice triple-digit gain in the stock market. yesterday when we saw pretty much the opposite directions move, we saw that yields really were behaving in a fashion where they didn't seem to believe there was going to be ever any good news. today we had better than expected data, even though it isn't going to take us where we need to go in housing. if you look at a chart of ten-year note yields, you can see that we are moving very close to, and just bordering 2%. if you open it up to two weeks, it looks as though we were going to be testing the upper end of
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this range, and all of a sudden disappointment regarding europe. but in the end, many traders think if the credit markets are going to send you that, things are truly getting better, that message has to be wrapped in a yield close to 210. the euro versus the dollar, all you have to do is know the direction of the euro, and you're pretty much going to figure out the direction of the stock market and direction of yields. and not only treasuries, but boons. >> the euro/dollar has been tracking the stock market tick-for-tick lately. we'll see what the market does with this rally. right now, the dow is up 118 points. the nasdaq with the biggest gain today, almost 1.4% right now, maria. >> well, we're looking at second markets, launching a new program. so much financial regulatory uncertainty out there, we'll find out what's behind that. second market senior vice president caryn feinberg is up
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with me, and frank keating. >> not changing his views of the market, adam parker is being bearish despite improving economic data in the u.s. we'll get his take coming up in a few minutes here. >> after the bell, what caused the shut down of cme's trading platform monday. terry duff any talking about consolidation happening in the exchange space as well. >> looking forward to that. here's how the s&p 500 heat map is shaping up. a lot more green today than yesterday. you're watching cnbc, first in business worldwide. glad you're with us.
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financials among the big gainers on the session today. speaking of financials, second market today announcing the launch of a new pilot program, giving banks more control over the secondary market over their stock and shareholders, creating more liquidity. caryn feinberg is with me now to talk about the opportunities. also joining us is frank keating, ceo of the american bankers association. good to have you on the program. >> thanks for having me. >> thanks so much. we've seen so many technology companies trade at second market. like facebook, that's probably the famous one of all. why banks? you've got banks struggling right now with the regulatory uncertainty out there. why create a market for some of these banks? tell me what's behind this pilot program. >> sure. we had great success with the companies in the technology space. we started to look at other types of companies, and we went to speak to the banks and found there was a real inefficiency in getting liquidity in the market. to your point, i think they're having some issues in the
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regulatory environment where they're needing more capital. investors are looking for ways to not only invest in, but want to invest in community banks where they can actually get out of them at some point. and our program will provide a secondary market for that exit when they're ready. >> it's interesting, because a lot of people are saying that liquidity has been impacted already by the uncertainty out there, caused by the volcker rule and some other uncertainties in terms of the regulatory environment. the creation of liquidity sounds like a positive. frank, what do you think about that? let's talk about your side of things from the overall industry. >> well, in the interest, maria, of full disclosure, 90% of our aba members are less than $1 billion in assets. the largest 25 banks, are members as well. there are headwinds, as noted. the capital challenge. obviously access to investment. 500 shareholder limit, for example, we're trying to expand
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to 2,000 shareholders. we have an index with nasdaq, which enkoirjs people to have access to community banks stocks purchases. but you see now an attack over the course of the last number of months, not only 6,600 pages of dodd/frank, but also limitation on small bank income, the limitation, for example, on interchange fees and overdraft fees. so there are headwinds. the banks are largely healthy. but small communities in america need community banks. if the community bank closes, the town closes, and that should be worrisome to all of us. >> yeah, for sure. and what caryn is saying here, is their pilot program is hoping to create some liquidity for some of the private banks out there. let me get your take, frank, on liquidity right now. do you think liquidity has already been impacted by dodd/frank and the anticipation of the volcker rule? >> i think clearly. for example, the qm and qrm, the
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qualified residential mortgage and qualified mortgage proposed rules have chilled a lot of the mortgage market. because people don't want to be sanctioned and they don't want to get in trouble. so i know of a small bank where an individual put down -- wanted to put down 25% on the mortgage. that's a wonderful down payment. and put $100,000 cd in the bank. but because he had a defaulted student loan within the last five years, subsequently cured, the regulator suggested the loan not be made. there's no question kinds of headwinds negatively impact liquidity. but i think it's great, second market proposal, these kinds of things, these institutions welcome it. i think it's creative and very helpful. >> so caryn, let's talk a little more about how this is going to work actually, caryn. in terms of the states that you're going to be looking at, the private banks, how will you decide which private banks to
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make markets in? >> sure. right now we're just piloting the program, so we have a select group of states, new york, new jersey, pennsylvania, texas and a select group of others based on the criteria that we're looking for healthy banks to start the program with. as we looked at our criteria against the u.s., these were the states with the healthiest banks. >> and what's the next tier of companies that we might see markets being made in? you've got the pilot in terms of the banks. but a lot of people are also looking at technology and remembering facebook is so active here, and other social media means before they go public. how do you decide what the next tier of companies, and what are they? >> it's really going to depend on the dynamics of what's going on. in the community bank sector, it was an inefficiency in the market and there was a clear need. we're solving something that they really seem to think is a benefit. we'll look for other types of private companies, where they see this as an added value for them. >> and why those sats so far? you've got new york, new jersey,
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pennsylvania and texas. >> we're focusing on those because the nature of the types of banks that are there, and also to make sure that we're performing correctly with the program. we want to be efficient with our step-by-step approach. we'll just do a few select banks for the private. and launch it through the united states as we progress. >> and real quick, frank, let me get your take. you think the volcker rule will be implemented in july? they keep pushing the comment period out. you've got to give the company 90 days to prepare for it. do you think it actually is impli meant in july? >> i think it could be. there are a lot of commented obviously that have to be mass ti gated and colated. we hope they refresh and take another look at it. >> we'll leave it there. frank, good to have you on the program. thanks, caryn. we'll be watching that pilot program for the community banks. later on we get the outlook for
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the trading market when i speak to ceo barry sillbert. >> a decent gain today, the dow up 117 points at this hour with the nasdaq up 43. >> up next, "talking numbers." we'll show you where the s&p 500 could be ready for a breakout. above 1,400. we'll take a look at the charts for the s&p, though. >> moody's is placing the ratings of five big banks on review. what that means for the hot financial sector when we come back.
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i'm bertha coombs. we saw big support this afternoon for oil prices. brent closing above $120 a barrel. amid continuing concerns between the tensions with iran, and lower production numbers in the north sea. that has pushed the energy complex higher. we got a bullish report when it came to natural gas. the drawdown this week, according to the government, was
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127 billion cubic feet. that was near the high end. a big reversal in nat gas from yesterday, and then some as well on the back of this news. interesting day in gold as well. the headlines about the european debt swap, the ecb debt swap for greek debt, that turned the euro. that turned gold in dollars. we ended up high on the day for the second day. that also brought up silver and copper as well. >> bertha, thank you very much. the s&p as we've been pointing out has been hitting a seven-month high today, breaking through what has been considered a technically important level of 1350. back above that. cords according to our next guest, 1400 is not far away, despite of rising oil costs. let's find out why. jeffrey wise, chief technical analyst here. having way, way too much fun on the floor of the new york stock exchange. >> i've been coming here since the day i was born, it seems
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like. >> welcome back. 1356 right now. what does this chart tell you? are we destined to go much higher do you think? >> keeping with risk management and realizing that i don't want to see it back at the 1300 level, yes, i think we can go higher. i think this rally was ignited in the days following thanksgiving. and if your viewers will look at the triangle pattern with the two lower lines serving as the base for the triangle and top line extending from the '07 peak, you'll see when we closed at or above 1320, we actually broke out, to use technical jargon, above that area. in keeping with that breakout, i don't think it's too much in the bullish trend that we have that we get eventually to a potential target somewhere in the low 1400s. you'll see that marked-up resistance there with the lines extending from between 1425 and
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1435. and the bottom line, which is the solidly drawn line, bill, extends back to the 2002 low. and that also hits in the area of roughly 1425, on a weekly closing basis. >> so for you, green light 1400, somewhere in that area. >> i look for 73, 74. things are never purely green. >> i'm with you on that one. once upon a time, oil used to move inversely with the stock market. lately it's been moving in locked step. as oil moves higher, is that good or bad? >> i don't consider a market negative, because the structure of the market i think is going to account for itself. even though the oil is in the $100, $102 band, i don't think in and of itself oil prices stop a market. a bullish market can withstand a lot of bearish punches. >> great to see you, jeff. come back when you can stay longer. >> i can stay as long as you want, bill. what do you think back there, everybody?
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>> jeffrey wise joining us on the floor of the new york stock exchange for today's "talking numbers." he's one of the biggest bears on wall street right now. wouldn't you know we would have him on a big rally day. adam parker explains why he is not buying into this rally. and as we head to the break, here's some of the standout performers among the s&p 500 components today. we're back after this. ttd#: 1-800-345-2550 what every trader needs. ttd#: 1-800-345-2550 like streetsmart edge, ttd#: 1-800-345-2550 the intuitive trading platform that thinks like a trader. ttd#: 1-800-345-2550 access dozens of workshops and webinars ttd#: 1-800-345-2550 -and talk over your strategy with dedicated ttd#: 1-800-345-2550 schwab trading specialists. ttd#: 1-800-345-2550 plus, traders get up and running faster ttd#: 1-800-345-2550 with a personalized introduction to all that schwab has to offer. ttd#: 1-800-345-2550 talk to chuck and get it all for $8.95 per trade. ttd#: 1-800-345-2550 open an account and trade up to 6 months commission-free. ttd#: 1-800-345-2550 call 1-800-790-6043 today. ttd#: 1-800--2550
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we started out not very impressive. telecom and utility stocks the leader. all that changed around 11:30 eastern time when news came out of the german newspaper saying that the ecb would swap their greek bonds for new greek bonds. it greatly increases the chances there will be an overall greek deal monday. increases, don't guarantee. that's what the market is reflecting here. the overall market long term, dow jones industrial average on pace to close at its highest levels since may of 2008. that's a rally. here's your market leadership groups. this is what i like to see.
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materials, financials, technology, that's what's been powering the market. that's what's doing it today. guys, back to you. >> a real meltup. thank you so much, bob pisani. another batch of encouraging u.s. economic data helping today's rally. supporting things from the get-go this morning. initial jobless claims down by 13,000 last week, to a seasonally adjusted of 348,000. anything below 350,000 is considered critical for sustained strength in the labor market. lower food and energy expenses, but the core ppi jumped .4%. that's the largest increase in core in six months due to higher pharmaceutical and higher home appliance prices. a better than expected annualized rate of 699,000 units of housing.
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1.3% decline in december. >> now, here's the number to write down today. if the dow can finish at 12,890.46, everybody got that number? that will be the highest close we've seen since last may of 2008. we're almost a four-year high for the dow. the nasdaq can beat that. it's on pace for its highest close since december of 2000. we're back above 1350 on the s&p. jeffrey wise just said 1370 is critical. he can see going into the 1400s. but our next guest said he's still not wavering on his cautious view about the u.s. stock market. according to the american association of individual investors weekly sentiment survey, bearish sentiment rebounded to its highest level since last december the 29th. so why the caution right now? joining us once again, adam parker from morgan stanley, who is thrilled to be here on a day when the market's up 120 points, right? >> good to see you. >> nice to see you, adam.
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welcome back. >> thanks. >> the sentiment figures can often be contrary indicators. the fact we're back to a level we saw in late december kind of puts us maybe in a bullish position right here, right? >> sometimes it's contrary and sometimes it's not. consensus is not always wrong. a lot of people want to be con trar yan. what i do for a living is talk to institutional investors. when i talk to them, i think they're bullish. a few weeks ago i think they might have been bullish with one eye open while they were sleeping. now it's a one glove off. i think maybe we're overpaying for that recovery right now. >> you don't agree with those who feel that the markets are underowned? undervalued as a result right now? >> i don't. if you look back at the market, the average the market's traded at is 13 1/2 times forward earnings. that's the average since 1976. we're a little below that now, 1357 earnings for this year for the s&p.
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the thing about it, you think the growth rate is going to be great going forward or not? i don't think it's going to be great. our economist has a paper out after the fall where he looked at financial crises and he's got compelling data that the growth is lower for several years. we think growth is going to be lower. >> but this assumes that our market has been trading mostly on our fundamentals when in fact they're keeping maybe both eyes on europe and what's been going on with greece. that seems to be improving, at least the last five minutes. >> it's a volatile situation for sure. if you look at europe, it's not solved. we don't see that as -- we hear from investors things like, all the tail rigs have been removed of the we don't agree. most people are forecasting a recession in europe this year. i don't believe u.s. companies with exposure to europe have guided down enough yet. you'll see that in april and july. >> for many people, it's a
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positive, because there are those who were fearing armageddon, disorderly default of the greek debt and maybe a domino effect. >> i think it's better than it was last fall, when the base case could have been many countries exiting the euro. i don't think that you should be euphoric about economic growth in europe. i think there's more tail risk in europe. it's been volatile in terms of what's happening. i don't think the u.s. economy is going to remain as strong as it was in q-4. the third thing is, on china, i see the risk/reward is more balanced than bullish right now. there's three stools to the thesis that i'm paying for a more benign scenario. >> i will get adam to tell us what we should buy. that will be coming up in the countdown in about 20 minutes here with adam parker, morgan stanley. maria, back to you. >> yeah, just 25 minutes away from the closing bell for the day. we're in the final stretch here.
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the dow jones industrial average up 117 points. nasdaq holding on to a double-digit move as well, bill. >> certainly one of the standouts is the financials. can they outperform despite the latest moves on moody's. >> all that money moving into technology, how will facebook's upcoming ipo impact volume in the secondary markets. barry silbert will give us his insight at 4:15 eastern. as we head to the break right now, take a look at all the green arrows in the dow components so far today. but first, before we go to break, the divide"dividend." which stock is the outperformer so far this year? citigroup, goldman sachs, or jpmorgan chase? the "dividend" pays off after the "dividend" pays off after the break. just wanted to check and make sure that we were on schedule.
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bell." i'm seema mody. another strong day for the nasdaq. upbeat economic data driving the bulls into tech. let's start with one of our tech heavy weights, microsoft. definitely catching the attention of investors. hitting a four-year high in today's trade. another bright spot, some of those recently listed tech ipos showing strength. groupon and linkedin being said they're both overvalued. chip stocks, recovering lost ground after a softer than expected sales outlook for the year. some analysts i spoke to say this morning that the weak forecast, perhaps only a temporary setback. maria and bill? >> seema, thank you very much. we do have almost 18 minutes left in the trading session. time for a quick market stat check on the nasdaq. we're on pace to close at a mul multi-year high right now thanks to the strength in the technology sector.
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apple back above $500 after the big decline yesterday, which seemed to take the rest of the market with it. seema mentioned, microsoft has been stealing the show today, hitting that four-year high, above $31 a share. meanwhile, the cbo volatility index back below 20, after closing above that level yesterday. the vix on pace to close below 20 for the first time in the past five sessions. maria? >> bill, financials are higher today, even after moody's warned of possible downgrades for a number of banks today. the agency saying that a host of financial institutions could get hit with another lowered rating on the back of concerns about europe. so do you want to be wary of buying financials once again after all the money that's moved into the group this year? president of menden capital advisers is here with us. and todd hagerman for stearn ag. good to have you on the program,
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gentlemen. >> thanks very much, maria. >> so, anton, how significant do you think this warning from moody's is today? >> well, i think we all knew it was coming. it was pretty foreshadowed. i don't think it's significant at all. this morning credit default swaps have blown out to the wids for this year. they came back in, as everyone realized it was something we all knew. morgan stanley might have to put up about $8 million more of collateral. seems like a lot, but they have about $180 billion of liquidity. it's not a big deal at this point in time. u.s. financials have plenty of capital and they're in good shape. >> yeah, todd, i know you're also not surprised by this talk of downgrades. you say the bigger issue is the outlook for the european debt crisis. but doesn't that also possibly impact the banks? >> that's right, maria. i think from this perspective, that while as anton said, it's certainly not surprising, and certainly as we saw in the group
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today, they certainly shrugged off the news. that being said, i still think it serves as a reminder that the european debt crisis is certainly far from over. and from my perspective really, it really underscores the underlying concerns of the federal reserve, both in terms of the global economy, and the outlook particularly for the larger banks at this point in time. >> let me ask you what i asked the guest just a moment ago and that is about the volcker rule. are you expecting the volcker rule to be implemented this july and do you think this is going to be a further negative for these banks? >> you know, it's interesting, we've been polling a number of companies, had a number of discussions with a number of officials in washington, and i think at this stage, if you consider the amount of feedback from the global financial sector at this point in time, and the number of issues that the feds have got to attack at this point in time, i think it's fair to
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say that the likelihood of the rule being delayed in terms of the july implementation is more likely than not similar to what we saw with the durbin, some changes at the last minute. i think we're going to see a similar type of chain of events with volcker. >> yeah. you just wonder if anything really happens before the election in november. but let me put that aside for a moment. anton, as someone who manages two financial funds, tell me how you're allocating money in the group today? >> certainly my large cap fund is going to have some citi and jpmorgan in it and the bigger regionals like capital one. but the smaller cap stocks look very interesting. we just came from a conference, i saw todd the other day in orlando, and the management teams feel pretty comfortable where they are. they feel comfortable about their own economic future. they're all talking about m & a. we need a match to light this
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kindling here. there's a lot of kind llg here. it's made it hard for the really small banks to make a good living. i think the large banks are facing revenue headwinds. i think the largers are going to eat the smallers. it's the bottom 7500 banks, not the top of the heap. we expect to see a lot of m & a coming up in the next few years. >> that may very well create some opportunities as well on the investment side. good to see you both. we appreciate your time today. >> maria, we've got about 14 minutes left here. another lag moving higher. the dow up 122 points. inside 100 points, away from 13,000 right now. the nasdaq still very strong with a gain of about 45 right now, maria. >> up next, jackie is getting set to round out "under the radar" names today. >> that's right, maria. lots of stocks taking a beating today. despite the upbeat market.
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new york stock exchange here in front of the post where they trade shares of jm smucker. one of the big decliners. down on heavy volume after the makers of folgers coffee blamed higher commodity costs which they tried to pass on to consumers. it didn't work. jiff peanut butter alone climbed by 30% in price, but vim tanked as a result. they lost a surprising 10%. smucker an hour cut its full earnings estimate to a range between $4.60 and $4.65 a share. smucker's keeping pace with kraft foods. struggling with higher costs and
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whether or not they can pass it on to consumers. with today's decline, it is in negative territory. not all stocks are moving higher today. >> yeah, you're right. pretty big moves there. well, you know, they may not be stealing the headlines, bill, but there are some "under the radar" names making the move today. we want to get to those with jackie with the details. >> maria, lots of stocks making major swings today, like bill said on earnings. let's take some of the smaller ones seeing trouble today, despite the upbeat market. avis budget group, the company saw a wider than expected fourth quarter loss because of writedown costs related to the acquisition of avis europe. the stock declining nearly 15% on the day. this's ancestry.com. this is the online family research company. the company saw better than expected earnings. morgan keegan is flagging acquisitions costs, saying that's an issue, saying that
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2012 might need a reset. stock trading down 16.7% at $23.75 for ancestry.com. ultra holding this company, making power transmission products. saw a slight rise in the fourth quarter earnings. adjusted income missed expectations. trading lower today by 4.7% at $20.52. >> we've got a short break we'll slip in right now and then we've got the closing countdown right after the break. terry duffy with answers in an exclusive coming up. check the major averages as we are approaching the final stretch. you're watching the "closing bell" on cnbc, first in business worldwide. se. used to be we socked money away and expected it to grow. then the world changed... and the common sense of retirement planning
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multi-year high right now. we're at a low we haven't seen since 2000 at the tail end of the dotcom move. options expiration day tomorrow. we had better jobless claims this morning. the manufacturing data, the philly fed numbers were very good. we're watching the developments in europe. i was going to avoid showing the euro today because i try to change things up here a little bit. but let's face it, this is the market that's calling the shots right now for our market. as we got word of the ecb bond swap, we're at the highs of the session right now at around $1.3145. that pushed other risk off markets to a low today. the 30-year bond was moving higher in yield to 3.14%. the ten-year yield was approaching the 2% level today. now, gold, we've been asking, is it a breath mint or a candy, a
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risk on trade or a hedge? it's been acting like a hedge recently. that's why we're not seeing it move in tandem with the stock market today. it is up $1.50. but that's nothing for the price of gold lately. the vix taking off the yellow flag, back below 20. second time in the last five sessions. we've seen the volatility index below that level. adam parker, price of oil, let me do that as well. let me ask you about this. $120, concerned about the developments in iran, and syria, and sort of pulling the new york market higher. the spread between brent north sea and our crude is $17 a barrel here. is that good or bad for stocks in the long run? >> i think it's actually bad for stocks. what we learned last year is $125 brent, $110 wti, that was around april of last year, all of a sudden we get demand destruction. we get $4 at the pump and it's bad for the consumer. here we are at $120, a couple of
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percent away from that level. we're underweight energy in our str strategy at morgan stanley. >> the market does have the pain point at some point, doesn't it. >> yeah, and it's pretty close to where we were last year. >> we were looking earlier at the sectors of how they performed today, an interesting mix of what was the strong eest. utilities for a time was the strongest sector today, along with the financials. kind of an odd mixture here. and then when you look at the bottom five, everybody was positive today. you have some of the defensive issues for the most part. >> i think if you look at this microstructure, it might mean we're in for a bit of a change in dynamic, that people who made some money and chased some of the higher octane stocks are pausing out. you don't expect the utilities to be in the top half and staples in the bottom half. our view is you'll probably want
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to get more defensive with the market at multi-year highs, because the back drop whether it's europe or the u.s. company being propped up, it probably doesn't mean you should pay more for the sector right now. we like utilities, because we know the estimates are achievable. you get a nice dividend. even though they're a little more expensive, i think it's worth it to get the 4% yield. >> adam parker at morgan stanley. have a good time. i like that very much. heading to the close. bob pisani. the dow will finish inside 100 points away from 13,000. >> unlike dow 10,000, it became a bit of a running joke how many times it went over and under it, only in 2007 and 2008 did we ever surpass dow 13,000 several times. but we're starting to get a little more rarified territory. >> that will do it for the first hour of the "closing bell."
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