year. >> some people like that. >> do you? >> no. >> thanks for watching "street signs." "closing bell" is coming up next. welcome to the "closing bell." i'm michelle caruso-cabrera. i'm in for maria bartiromo. >> and i'm bob pisani. the nasdaq dropped in negative terry. we're still up. not far from the lows of the day. nasdaq just hit the lows of the day. we were at 3030 earlier. >> yes, we were. >> we just moved into negative territory. also near the lows of the day,

still on the upside. michelle? >> once again, you see how dominant apple is. let's take a look at the stand out stocks in today's session. bank of america is bucking the trend down nearly 5% right now. the stock is getting hit after analysts downgraded the stock to a sell from underperform earlier today. remember, it's a dow component. apple is weighing on technology and near the session lows. stock is now off 10% off the high of 644, back since april 10th and the worst weeks since july 2010. the s&p are back on weekly gains.

only technology stocks are negative for the week. >> as we look at the next week, what can the market expect? ron insauna and what's your sense of where we are here after several months of generally great economic news, it's been choppy in the last couple of weeks. >> yes, that's to be expected. the run for s&p was up more than 12%. the concerns about europe, china, and the strength of the u.s. economy, i don't think it's as much -- we'll talk about this later, it's as big of a deal as it was the last couple of years. you have to expect the market was going to pull back after the first four months, 3 1/2 months. >> does this mean anything? >> i don't know about anxiety but we can't ignore that apple

is one of the biggest stocks and influences on q1 results for the entire indices. the s&p is north of 4%. it has extraordinary influence. in q1 it was largest from central bank. the two biggest influence is q1 rally we're going to get information from after reporting alcoa on tuesday. >> the fact that one stock has a dramatic impact, it seems both major averages, even though it's part of the nasdaq. we saw the dow come way off the highs after we saw apple move lower. >> well, you've got to find out how it got there. it got there with incredible -- >> does it say anything quantitatively? people opine that it is a bad undue influence or is it okay the way it is? >> i think it is okay the way it

is. this market has been narrowing for weeks. i think that narrowing of breath is a sign. i mean, to me, we're in between qe and every single time over the past bunch of years, we've been in between qe, the market and the economy have hit bumps and it's exactly what we're seeing. >> there was great anxiety over the fact that we're only going to grow 1% in earnings. now we're up over 4%. >> the percentage of beats is near record. 20% of the companies have beat on the profit side. that's as good as we've seen since 2009. i think it's pretty good news. i think the quality of earnings might not be as great as we want but we're pretty long in the tooth here. i don't think it's a negative. earnings are good and i think

the u.s. is becoming, as ge suggested, a source of profits and a source of strength as the rest of the world slows down. >> do you buy the fact that the u.s. can outperform the rest of the world? i get hate mail when people bring this up, there is no such thing as divergence or anything like that. >> decoupling? sure. last year my theme was, there's no place like home. i think when you look at an economy like ours, we are not as reliant on discretion and financials are looking better. we're getting the types of signs, at least to me, that we're not going to have a spring and summer like 2010 and 2011. >> peter, when you talk to clients, are they thinking that

at a minimum the u.s. is a dog with the least fleas at this point? >> well, i think it's how you define fleas. the u.s. finds easy credit, drugs from the fed. it's tough to see what is real and what is not. there's no question that europe is the biggest concern. the u.s. economy is at best mediocre. we'll get a report on friday but almost every single economic data point has been disappointed and we're not going to be immune as to what is going on in europe and in asia and, again, u.s. growth is just lack luster. so, again, to me central bank largest is what is keeping it at these levels. >> ron, thank you very much. let's get more on today's apple selloff. kayla looks at today's biggers and movers. >> it's apple. it's weighing on the nasdaq and entire s&p 500. apple is down just more than

2.5% entering into that correction territory from the all-time high of 644 bucks hit on april 10th. also edging closer to crossing the 50-day moving average. that's definitely one that we've been watching a lot. as far as nasdaq goes, microsoft gains are actually outweighing apple's negative impact. microsoft, its gains responsible for mdx points of the nasdaq three-point gain while apple is responsible for nine negative. microsoft, big jump on earnings today, up by better than 5%. we have some other stocks moving the markets to the upside, mostly coming from the ipo market. a great market for companies going public. infoblox pricing at 16 bucks above the expected range of 12 to $14 and raising by 7.5 million shares. today, up 36%.

another ipo makes its debu is midstates petroleum. it's a little shy of 15% gain here. that's not a great gain compared to other ipos, you might want to get into the other asset class. it did raise $312 million after pricing at $13 a share even though it was below the expected range. rick santelli is at the cme. rick, i'm assuming that as we saw stocks start to sell off and nasdaq is a selloff fully, do people go into bonds? >> yeah, but i think they were going in that direction any way. you can see on these three-week losing charts.

the spread is 26 basis points. the u.s. is doing better. you can see that in the credit markets. still under 2% means that there's a nervousness as well. it's a positive dow week. we have two housing numbers, two confidence numbers. our first look at quarter gdp one week from today. we have supply. we have a fed meeting and we have the postmortem on the elections in france on monday and sall of these are having a buying effect on treasuries as investors are clinging to anxiety at a high-profile fashion. back to you. >> thank you, rick. dow jones industrial average up 118 points at its height but now well off of that.

nasdaq has gone negative. some of the other tech stocks. >> slip siding away here in the last hour. american airlines may be flying towards a merger. is this a win-win for airline investors? we're going to talk to two top analysts, next. and netflix will sell its business on monday. shall is focus on being a streaming company? if you drop your netflix account in the past year, what will it take for you to be part of their service? tweet your responses to @cnbcclosingbell. we'll get the trade on apple coming up. and here's how the s&p heat map is shaping up. you're watching cnbc. we are, of course, first in business worldwide. [ male announcer ] if you want a luxury car with a standard power moon roof,

standard keyless access, and standard leather-trimmed seats, then your choice is obvious. the lexus es. it's complete luxury in a class full of compromises. see your lexus dealer. mine was earned off vietnam in 1968. over the south pacific in 1943. i got mine in iraq, 2003. usaa auto insurance is often handed down from generation to generation. because it offers a superior level of protection, and because usaa's commitment to serve the military, veterans and their families is without equal. begin your legacy, get an auto insurance quote. usaa. we know what it means to serve. zap technology.

arrival. with hertz gold plus rewards, you skip the counters, the lines, and the paperwork. zap. it's our fastest and easiest way to get you into your car. it's just another way you'll be traveling at the speed of hertz.

welcome back. i'm julia boorstin. disney shares trading a half a percent higher. today the chairman announced he is stepping down after he failed to translate his success running the disney channels worldwide into the movie business. ross oversaw the john carter which disney said will lose $200 million and responsible for an operating loss between 80 and $120 million at the studio in the fiscal second quarter. disney is not naming a successor just yet and seems like there are no obvious front-runners. bob, over to you. >> julia, thank you. time now for a quick market stat check. consumer staples have been leading gains as well as for the week. the three sectors are among the worst performing sectors so far this year. they have been cutting gains since lunch time. the dow industrial is off of the

highs. we were up to 80 points at one point. on track for the best rise since mid-march. american airlines creditors appears to be paying off. all of the unions that ultimately get to decide on the deal say they are in favor of a marriage between the two companies. but this is far from over and there's still a lot of questions about whether it's the best option and how an industry tightening its belt would be impacted. >> and managing director, jamie baker, and jeff. let me start with you, jeff. why do aur lines think they can get a better deal with u.s. air rather than amr after bankruptcy. u.s. air can't pay too much for them or they will destroy all of the cost savings. no? >> well, it's clearly a defensive move by the union and in the negotiations that they've had with the management, they are looking for a better deal.

than delta was able to get. the union would like to attain as much of its pensions as possible. u.s. air either partnered with them or has a leverage point against management. clearly a defensive move here. >> jamie, can this even be possible? there isn't even a deal to consider. the union is saying they support something that doesn't exist yet. >> well, sure, we think it's possible. >> but now in bankruptcy? there's no deal on the table, right? >> of course not. this is a campaign that u.s. airways is waging to win the support of american creditors ultimately the decision is in their hands. they locked up three of the nine as you already identified. so the question is, can they maintain this momentum? can they get a fourth and fifth and a sixth vote in favor of an event you'll transaction that can materialize before the end of this year?

>> but don't they have to lay out -- do they have to make an offer at some point? >> well, of course they have to make an offer. >> how do the unions know wh? >> if and when a merger is proposed and of course those economics would only be realized if a merger eventually closed. >> is this a battle that u.s. air deserves to win? will this help the american consumers get better airline? u.s. airways had a tough merger with america west, as i recall. is this a good idea for american consumers have this company win this battle? >> well, i think the question ultimately is american better served stand-alone trying to be a distant number three in the market or -- and u.s. air kind of rel lated to connection

status or u.s. air fighting for its long-term survival here. can they do some things as part of this deal that wasn't done in the other two combinations. that remains to be seen. but if u.s. air succeeds in swaying enough votes, it becomes a different discussion. what do we do with phoenix and los angeles, philadelphia and new york? completely different questions. >> what about investors bringing these two companies together? would it be a good stock once everybody is out of bankruptcy? >> look. i am highly confident that if they successfully merge, they will earn more in 2014 than they otherwise would if these companies remained independent. jpmorgan has companies all over the world. chances are i can get into any of their offices flying delta with a single stock. american right now is likely to

able to offer that and u.s. air far less likely. you put those together and now you have a network that can stand shoulder to shoulder. that's why this deal makes sense to investors and to passengers, particularly business passengers. >> are airline prices going up or down later in the year? >> we have high conviction that they are going up. >> great. great news. gentlemen, thank you very much. appreciate it. nasdaq is now in negative territory. lower by nearly two points. >> $1600 to go to rome this summer. 1600. >> wow. >> s&p with 1% gain? we'll breakdown the charts next in talking summers. >> that's double last summer. >> that's exactly right. plus, he's helped asia and latin america get out of crisis. bill rhodes tells us what it will take to get europe out of

its problems. of any interest t? well, in that time there've been some good days. and some difficult ones. but, through it all, we've persevered, supporting some of the biggest ideas in modern history. like the transatlantic cable that connected continents. and the panama canal that made our world a smaller place. we supported the marshall plan that helped europe regain its strength. and pioneered the atm, so you can get cash when you want it. it's been our privilege to back ideas like these, and the leaders behind them. so why should our anniversary matter to you? because for 200 years, we've been helping people and their ideas move from ambition to achievement. and the next great idea could be yours. ♪

how do you know which ones to follow? the equity summary score consolidates the ratings of up to 10 independent research providers into a single score that's weighted based on how accurate they've been in the past. i'm howard spielberg of fidelity investments. the equity summary score is one more innovative reason serious investors are choosing fidelity. and explore your next investing idea. a living breathing intelligence bringing people together to bring new ideas to life. look. it's so simple. [ male announcer ] in here, the right minds from inside and outside the company come together to work on an idea. adding to it from the road, improving it in the cloud all in real time. good idea. ♪ it's the at&t network -- providing new ways to work together, so business works better. ♪

welcome back at the "closing bell." cm sechlt announcing some changes. they are lowering the sulfur specifications on heating oil contracts expanding listed months from 8/20/13 and beyond. they will be available for trade on april 29th. this could prevent an 8 to 10

cent differential. while this may seem like an opportunity to deliver april 20, 13 against may 20, 2013 t. will make the product useable. >> in the final day of a very volatile week, where are we going from here? you've been looking at the s&p 500 what's it telling us? >> it's trading above the 40-week average and that's a positive. however, momentum measures are waning. therefore, i see it's very limited. next week is the big week. there's the french elections, apple earnings, and an fomc. expect it to give way and a

decline to take hold. >> and to go where? >> below that would be 1292. >> so we could potentially go to 1292 from here? >> i believe so, yes. >> and after that we see whether that holds? >> we will see if that holds. that will be an important level. >> apple, you mentioned on tuesday. what happens, whether they hit or miss? >> i expect the stock to gap quite significantly. >> either way? >> i see the stock as rolling over. >> it's going down no matter what it does. >> there's a lot of expectation built into that stock. >> let's bring it up so we can see it. >> well, this is actually a chart of apple. we see it intraday. it's moving sharper rather than lower. it's a big aspect of the nasdaq composite as well. >> yep. >> i expect apple to continue to head lower. when we look at the composite, the important thing about this is the advanced is so far that

around 3120 -- it's right here. 3120 is the 50% retracement of the entire decline. i expect the composite to sell off as well. >> wow. >> all right. happy friday to you. >> happy friday to you. >> thanks for coming in. bob? >> dow jones industrial average is down and nasdaq went into negative at 3:00 eastern time. just about 20 minutes to go before the bell. the last same s&p was on the bell, he said that his market was overbought. find out why he's turning more bullish. plus, kay la tausche will have some of the baby whales. >> we'll recap those coming up.

tdd# 1-800-345-2550 checking the charts. tdd# 1-800-345-2550 looking for support, tdd# 1-800-345-2550 resistance, breakouts, tdd# 1-800-345-2550 a few other tricks that i'll keep to myself. tdd# 1-800-345-2550 that's how i trade. tdd# 1-800-345-2550 and i do it all with charles schwab, tdd# 1-800-345-2550 because their streetsmart edge platform tdd# 1-800-345-2550 helps me trade quickly, intuitively. tdd# 1-800-345-2550 staying on top of the market is key! tdd# 1-800-345-2550 and the momentum tool, tdd# 1-800-345-2550 it lets me do it at a glance, tdd# 1-800-345-2550 so when things shift, i'm ready. tdd# 1-800-345-2550 then to track the stocks i have my eye on, tdd# 1-800-345-2550 i turn to schwab's high/low ticker. tdd# 1-800-345-2550 so i can spot a potential breakout tdd# 1-800-345-2550 before it breaks out. tdd# 1-800-345-2550 and get this...i can even trade, tdd# 1-800-345-2550 change my orders or check out my positions tdd# 1-800-345-2550 right on my chart. tdd# 1-800-345-2550 my system works for me. tdd# 1-800-345-2550 does yours work for you? tdd# 1-800-345-2550 get streetsmart edge tdd# 1-800-345-2550 from charles schwab for $8.95 a trade. tdd# 1-800-345-2550 open an account and trade up tdd# 1-800-345-2550 to 6 months commission-free. tdd# 1-800-345-2550 call 1-800-239-3234 tdd# 1-800-345-2550 and get started today.

let's zero in on earnings here. of the 77 companies that reported first quarter earnings, 63 have beat analysts'

estimates. that accounts for 82% of the beat rate. >> with an 82% ratings beat, is the market still vulnerable? sam, there was a little bit of a panic a couple weeks ago. only 1% earnings growth. good heavens, is this the end of the rally? how do you feel about the way it's shaping up so far? >> i certainly feel a lot better. obviously the numbers that keep coming out every day now that more than 120 companies have reported 4.5% growth instead of 70 sectors expected to post declines, now they are going to post advances. it's also second, third, fourth quarter and the full-year estimates have been rising. >> does that mean we're no

longer overbought? >> in my opinion, we have come down from that. the indicators are now modestly higher, modestly bullish, but not in the over bought that we were in before, especially with the s&p compared to the 200 moving average. we were more than one standard deviation from the mean implying pretty much overbought. >> what's on your radar? >> you had weak numbers this week, sam. bob, michelle, from the philly fed, from the empire state, the new jobless claiming claim out higher than people expected. the profit numbers are god. the spain numbers, 590 is the two-year bond yield. it went okay, not great. things are basically looking to be driven by -- we've got 400 more companies to report now. about 400 of the 500 have reported. next week is a fed meeting, tuesday and wednesday.

it's either this meeting or the next meeting. the worst things get, the more likely it is that people's bank of china and european central bank may do something positive. so right in here you could use this as an opportunity to take some profits in the big winners and put it into defensive stocks. >> you're expecting ultimately -- when you list all of those things that you just went through, the bottom line is what? >> the bottom line is we're looking for the market to be lower at year end, as you know, because fiscal pothole next year and europe is in a recession and this big ltro was basically liquidity at first and now it's ended up linking the governments and banks more lightly. so we don't think we're out of the woods just yet. >> and, sam, other than retail sales, it's been pretty choppy. we haven't seen this for a long time, just in the last two weeks. is this worrying you?

>> no, it's confirming our recovery. it's been half of what is normally is coming out of recession. so we're moving further and further and further away from the prospect of a double dip recession. it's not enough that we have to worry about raising rates. >> how do you invest in a half-speed recovery? >> what you do is focus on high-quality companies, those that have consistently raised their earnings and dividends in a very tough environment. i don't think that the dividend is dead. certainly you can benefit from low volatility and high earnings growth and dividends. >> buy some apple. buy some intel, buy some qualcomm. by some of these great companies and what they will do is pull back and put fresh money to work

there, mesh shell. >> >> 448 years, 448 yours old. williams shakespeare. happy birthday williams shakespeare. >> there we go. soul men. >> that's right. >> thanks, guys. appreciate it. >> we told you about apple, bank of america, the other big fish on the move. what about as kayla says, the baby moves. >> i hope we don't keep using that term. nonetheless, zynga is hardly a cap company. ahead of the first earnings report as a public company next thursday. more trouble throughout the year it's been losing the facebook shine. today it's just at 930 which is below the ipo price.

let's take a look at apollo global management. great wolf finally reaching an agreement and topping rival bidder kls capital partner of most recent offer of 7.25. shares closed up at 808. still trading through that offer today. what we're looking at with apollo global, don just 3.5%, about. let's look at kimberly-clark. moving to the upside by 1.5% as the kleenex and diaper maker posted a bigger increase in quarterly profits. q1 earnings are rising by 34%. the birth rates keep rising. michelle, back to you. >> thank you, kayla. mcclendon has been in the news. >> it's a big loan. >> it is a big loan. he has another business that we featured many years ago on cnbc

in 2007. he owns a rest stop on route 66. it's the prettiest rest stop that you've ever seen. it's called hops. >> it goes from st. louis to los angeles. >> in cleoklahoma, he wanted to fill it with america-made soda pop. they are craft stee, one is -- >> what opportunity did you have to do this with him? >> i read it back in gourmet magazine in 2007 and wanted to do a story on his soda pop empire. he's won architectural awards. he hired one of the best ark tests in tarchitects. >> it's a very serious problem for the company when you can see

what it's been doing. this has been going on for quite a while. it's a sensitive issue. the company says it's not a conflict of interest. i'm not so sure that it is isn't. of course, he's borrowing the one from a co-investor and there is -- and there's a history of controversy with him. a lot of people see him as a high-risk individual. he's made a lot of money and then he's lost a lot of money at the same time. >> yep. >> 24 minutes to go. dow jones industrial average, nasdaq went negative briefly. in fact, apple, broadcom. >> we're going to talk to a top trader on the floor of the nyse next. apple's worst two-week selloff in two years ahead of tuesday's earnings. as we head to break, here's

some stand-out performers. e-trade financial higher by 6% but sears is holding down by nearly 5%. >> announcer: but, first, before we go to break, the dividend. which stock is this year's outperformer? apple, gap, or time warner cable? "the dividend" pays off after the break. [ mujahid ] there was a little bit of trepidation, not quitewingthe next phas, you know, because you been, you know, this is what you had been doing. you know, working, working, working, working, working, working. and now you're talking about, well you know, i won't be, and i get the chance to spend more time with my wife and my kids. it's my world. that's my world. ♪

why let erectile dysfunction get in your way? talk to your doctor about viagra. ask if your heart is healthy enough for sex. do not take viagra if you take nitrates for chest pain; it may cause an unsafe drop in blood pressure. side effects include headache, flushing, upset stomach, and abnormal vision. to avoid long-term injury, seek immediate medical help for an erection lasting more than four hours. stop taking viagra and call your doctor right away if you experience a sudden decrease or loss

in vision or hearing. this is the age of taking action. viagra. talk to your doctor. omnipotent of opportunity. you know how to mix business... with business. and you...rent from national. because only national lets you choose any car in the aisle. and go. you can even take a full-size or above. and still pay the mid-size price. i could get used to this. [ male announcer ] yes, you could business pro. yes, you could. go national. go like a pro.

. before the break, as part of "the dividend," we asked which company stock is this year's outperformer? now the payoff. the gap, which has risen about 50% year to date. welcome back. after 12 weeks of treatment, 95% of patients showed no sign of relapse. a good day for abbott labs.

building into the stock over the past week, expecting a revenue around 869. happy friday to you. >> that is redundant, seema. here are some of the responses that we received on twitter. just dropped netflix after one month trial. old limited selection. they were taking too long to release new movies. now i just buy them from my apple tv box. lower subscription cost. all right. we've got about 19 minutes left

in today's trading session. time now for a quick market stat check. the volatility index, so-called fear index. the vix finishing out lower than on sunday. now at 17.55. the nasdaq is lower by 6 points. 3,001. clinging to the 3,000 level. and up and down week for apple. what a roller coaster. ahead of the second quarter earnings out oh on tuesday, apple putting a nine-point drag. at 572, down 15 bucks, trading near session lows. apple has not closed on the 570 range since march 13th. bob? >> michelle, let's stick be with equities. clearly positioning the dow for modest gains, nasdaq under pressure as you saw in the final minutes.

should investors compare volatility? earnings coming out from tech giants like apple and fomc meeting. market analyst gordon, an old friend here. it's been choppier recently. you've got to admit, the intraday price swing is higher. the volatility has been higher for the last two weeks. is this all related to apple or to something else? >> traders like volatility. we know that. >> yeah. look, it could be related to apple. it could be related to all of the earnings that we've seen but people are focused on the macro. the french election, something you wouldn't think traders would be talking about. that's a pop particular of conversation. people are looking at that and saying if sarkozy loses, that could be a pretty heavy impact on european policy. >> you've got to note, things have been choppier here. are we heading in for periods

where the summer is going to be -- even if the volume is lighter, summer is going to be tougher at this point? for example, the fomc, what are they going to say? how are they going to describe this current economic environment? are they going to open the door to qe 3? >> i think the traders are saying that's what is going to happen. you might see a pullback and people think the market is slowing down a little bit. people are starting to talk about qe 3 on the horizon. it's one of those things, bob, at the enof the day, we're starting to see major getting involved. and what's going to take it next week? they are going to position themselves and the fed is one of the biggest ones that people are looking at. >> you're mentioning france already we've seen pop tired of talking about pro growth policies. are we in for a period now where the emphasis in the european

parliaments are going to be on stimulating their economies? >> we don't ne. the divergence between the two candidates has become so significant that -- and there's even a third candidate that said the upper tax rate should be 100%. i can't quite figure how that's going to be pro business. you've got a complete divergence of how policies should be handled by different french candidates. what will that mean for the unity of the european union? these are questions that could bring a lot of volatility to the room and hopefully that will make things interesting for guys like us. >> it will. always a pleasure to talk with you. michelle, over to you. >> hey, bob. dow jones industrial average is higher by 72 points. moving up again while the nasdaq is lower by 7. coming up next, options action trade on how to cash in on france's presidential election. so what do you do? plus, bill rhodes weighs in on europe's financial recovery

or lack there of. as we head to the break, here is how the currencies are trading right now. euro at 1.32. look at that

what makes the sleep number store different? the sleep number bed. the magic of this bed is that you're sleeping on something that conforms to your individual shape. wow! that feels really good. you can adjust it to whatever your needs are. so whatever you feel like, the sleep number bed's going to provide it for you. now, sleep number redefines memory foam, combining coolfit gel foam with sleep number adjustability. during the final days of our white sale, receive $400 in free bedding. only at the sleep number store, where queen mattresses start at just $699.

welcome back to the "closing bell." i'm michelle caruso-cabrera. they trade dr horton surging within a dollar of its 52-week

high. the home builder second quarter results on monday. today getting a lift from isi telling clients that the street expectations are muted. that's going to set the stage for an out performance of orders. they are not giving dr horton its due even though it's beaten street estimates. over the past year, dr horton shares have been running second to lennar. bob, over to you. >> france set to hold the first round of presidential elections this weekend. the drama is mounting as incumbent nicolas sarkozy could be in for an upset. brian, what's up? >> hi, bob. you mentioned about the elections coming up in france. it's going to provide a lot of volatility. especially if the socialist

party takes over. i want to monetize volatility. there's volatility in every walk of your life. how do you control it? take a look at this. this is a stock like total. i want to play for some of the volatility out of this election. what do i do? i'm looking to buy a may 47.5 call. i'm also going to buy a 47.5 put. it allows me to short the stock below 47.5 with the put. but what i need here is a $3 move. that's what the cost of the trade is going to be here. outside that range, 44 on the downside, that's where i want to move. follow me on twitter @brianstutland. now back to you, bob. >> thank you, brian. up next, we're coming right back with the closing countdown. and then after the bell, is

netflix better off overhauling its business model or its leadership? that's coming up next at 4:00 p.m. as we head to break, here's how the major averages are trading before the close. we are cnbc, first in business worldwide. carfirmation.

only hertz gives you a carfirmation. hey, this is challenger. i'll be waiting for you in stall 5. it confirms your reservation and the location your car is in, the moment you land. it's just another way you'll be traveling at the speed of hertz. [ male announcer ] while others are content to imitate, we'll continue to innovate. the lexus rx. why settle for a copy when you can own the original? see your lexus dealer.

like in a special ops mission? you'd spot movement, gather intelligence with minimal collateral damage. but rather than neutralizing enemies in their sleep, you'd be targeting stocks to trade. well, that's what trade architect's heat maps do. they make you a trading assassin. trade architect. td ameritrade's empowering, web-based trading platform. trade commission-free for 60 days, and we'll throw in up to $600 when you open an account.

welcome back. bob pisani on the floor. the dow jones industrial average, nasdaq gone negative as the stocks are negative in addition to apple. let's go to our guest, chief investment strategist of morgan stanley. it's going to be a wild weekend. we have the imf. already have good news. lining up money, 430 billion, we're hearing. christine lagarde is doing her job. can this actually influence our markets if he's the and which

bond spreads over 40 to 50 basis points. right now the french is trading at about 140, 150. so they are beginning to worry about -- >> so socialist, would this actually influence the early winner over the weekend, they might be run off, would this affect our market monday? >> one of the things going on that's right for the united states of america, you look at these banks, they've gone from 30 times equity, the assets, leverage factor, down to 11 or 12 times. our banks are in phenomenal

shape these days relative to the rest of the world. that's a good thing. there's repair, resuscitation, rejuvenation that is sip lently, secretly going on here. so it would take a lot, bob, to unsettle for europe to unsettle our banks to become back to our own netting. >> i bve we are improving and i see no -- post earnings, the banks are doing terrible. >> they are up 20%. still not back to where they were. >> the point is, we have the run up to the earnings season and the growth is fair but not great. >> i mean, loan growth -- honestly, loan growth is fair. >> and the trading component of it, people are still worried about dodd-frank, it's more domestic concerns than the ability of this -- of a

contagion effect of france to hurt us. >> if we got more loan growth, i just don't see it in any dramatic way. >> you were looking at the comments by the ceos this week. you'll have big ones next week. obviously people are going to be focused on apple, which is next tuesday. you're going to see the banks that the ceos of the banks, are they talking about loan growth? it's not varied just yet. it's related to housing, to consumer. it's been student loans that have grown and not the automobile and not the credit card which has shrunk, as you know. those are things that you want to see to see the consumer beginning to get the consumer back in his or her sails. >> david, thank you. always great to talk to you. keep a close eye on the french elections and what is happening with that. i want to talk about the market and what's been happening. a few groups trading to the upside, some of the home-building stocks.

d.r. horton and lennar and kb home. how about tech? the only negative sector this week really but the important thing is it's not a very good day today. i'm not just talking about apple. sandisk, micron, big semiconductor names. and broadcomm has been a monster. yes, neither of the other financials out there. it's certainly not all due to that. clearly we don't have a lot of loan growth. and mortgage division. finally, in terms of the