happy happy friday, everybody. i'm bill griffeth. maria will be along in just a few minutes here. does it -- get this. right now the stock market is on track for its best week of the year. in fact, maria, you are here now. >> yes. hi, bill. >> does it feel like the best week of the year for the markets? >> no, it really didn't, bill. but that midweek huge 285-point rally really boosted things on the week and sort of the bernanke commentary. but there was a lot of head winds and a lot of negativity around facebook and the europe

worry. >> a week after the worst week of the year, we are seeing volatility pick up right now. major averages picking up steam. the bulls set to get the last word, we think, right now. but we are losing altitude as we sit here. show you the chart of the dow a few moments ago it was up 80 points. now it's up 66 at 12,526. anything is possible. you know how this works. nasdaq is up 21 points. that's holding up for the high of the day at 2852. early in the week we were talking about both the s&p and nasdaq close to correction territory. but it's up seven points on the s&p today at 1322. take it away, maria. >> facebook is taking center stage, bill. take a look at where the stock is trading at this hour. we had gains pretty much all day. a gain as we approach the final

stretch at $27 even. we have breaking developments on the facebook ipo fallout, though. ubs is facing a major fallout from facebook. the firm tells me they could have losses as high as $350 million. that's ten times more than the $30 million number currently being speculated in the market by others. the firm is preparing legal action against nasdaq as a result of these trading losses. now, the issue has to do with the failure to get those confirmations, the executions from the facebook trade. i'm hearing that ubs wanted one million shares but when it did not receive the confirmation, repeated it many more times and got more stocks than they wanted. they say, given the size of our u.s. equity business and our role as a major market maker, ubs was affected by these issues, as we believe other market participants may have

been as well. consistent with our policy on market which is not material to ubs. we're continuing to consider avenues to consider our losses in this manner but have not yet taken legal action. sources are saying that ubs tried to unlock the stock at $35 a share when it became clear that the confirmations were not coming. they could not catch a bid at 35. they sold some of the positions under $30 a share. as it was dropping, ubs was a big seller here. it's not clear whether ubs has hedged this loss in any way. bill, i think the question here is, is really a liability in the face of nasdaq, is nasdaq liable? or is this, in many cases, human error that the trader kept entering and reentering the same order because they were not getting the confirmation? that's going to be disputed. >> i want to call this a comedy of errors. every time we talk about something else that went wrong, it turns out that there's more a

tragedy of errors, one thing after another compounding what was supposed to be the biggest ipo in a long, long time and it turned out to be the biggest fiasco in a long time. >> absolutely. joining us on the telephone is christopher walen and andrew into the conversation as well to get the legal complications of this. andrew, you heard the story that cnbc is breaking today, the fact that ubs was sitting on all of this stock. $350 million in losses. do they have a case here to go to nasdaq and say, look, we want to recoup this money? >> i don't think so. if what's being reported is accurate and it appears that you have a trader putting in multiple trades and just not getting the confirmation back, it's going to be extremely high for the most sophisticated trader out there. >> chris, what's your take?

>> well, you know, it's interesting listen to you, maria. i keep thinking about my day's work in prudential securities where we had to shoot ipos that weren't tight enough and i think nasdaq clearly contributed to this mess with their technical problems but i don't think morgan stanley should have priced this deal. they should have had much more support from institutionals. they should not have increased the retail allocation and stuffed their retail customers. it's insane. and then you had the big secondary component which makes no sense. they should have cut that often tirely. >> are you saying, chris, that the size and price of the offering contributed greatly to the technical problems for nasdaq? is that what we're talking about here? >> i think there are two different issues but having worked in this business as a banker, you have a duty of care that's equal to your retail customers and to your banking customers. >> maria, remember, nasdaq is going to be able to successfully point its finger and say, look,

we're not the cause of this. a big part of the problem, high frequency traders putting in the trades milliseconds before going public. >> they will ghost orders. they didn't think they had stock so they asked for more. >> bob greifeld told me that they are humbly embarrassed, there were mistakes, not being able to handle the type of volume that we're talking about here. but nasdaq is not going to be response nl for $350 million of losses. >> if they had institutional support that was sufficient, it would have priced up regardless of the technical problems. okay? i don't think they had enough institutional support and then they increased their retail allocation in the 11th hour. >> when was the last time you heard retail gets 25% of a deal? >> exactly. >> we were all here in the '90s when everybody wanted a piece of the dot-com action. >> that's the point. they should have tightened this

deal up and then increased the secondary component, too. >> let me bring in jeffrey and, of course, chris is continuing on with us on the telephone. what do you think, jeff? tell me your take on this in terms of the liability here. is nasdaq liable for ubs' losses that i'm hearing about today? >> well, the thing that strikes me is the size of it. if you look at the largest market makers out there, they are both talking 30, 35 million. citi came out and said 25 million. 350 million seems extremely large. >> the 35 million is what we heard because of market trading. but trading losses -- >> trading losses, right. >> they were trying to sell it, couldn't get a bid at 35, ended up selling it below 30 and that's where you're getting this

$330 million loss number. >> we should be talking to morgan morgan stanley. >> that was a week and a half ago and by all accounts the demand was there and that's why they priced it at $38 a share. >> oh, come on. >> when the analysts were lowering the estimates because it became clear that facebook was not going to be able to monetize the way that everyone thought they were. they start taking the numbers down and people are finding out about this select client, their biggest client is finding out about this. >> but, maria, morgan stanley has done a terrible distfr to everybody in our business. if you don't protect retail customers, they are not going to come back. >> maria, there's going to be a tsunami of litigation against

virtually everyone. i think part of the reason why ubs wants to consume nasdaq, that is material that they will likely face a class-action lawsuit and they want to deflect the blame. but there's going to be litigation against morgan stanley, facebook. it's going to be a regulatory mess. >> how much have liabilities face book? i've been told that fis book is pressuring a lot of this, too. they say we want a price over here. we know that there's demand. even down to the damn t-shirts. i said to bob gri 23e8d, why did you wear that t-shirt? what i learned from others is that facebook said, no jacket. you've got to wear a hoodie or a t-shirt. >> i think you're right, maria. >> i think the ultimate blame is going to fall on the shoulders

of morgan stanley. they've done hundreds of these deals. obviously this is the only time facebook has done something like this. >> this just shows that they didn't have enough institutional view, in my view, and they stuck their retail customers. it's hideous. >> how much of this -- you're talking about the percentage that went to the public out there. how much of this is just well-intentioned but ilexecuted to allow the public to participate in this ipo? jeff harte, is that what kind of mucked up the mechanisms that went on here? too many people tried to get involved in this whole thing? >> whenever there is a problem like this, you look for the culpable party. it's very important to remember the market backdrop this was done in. even absence is the glitch and the air was coming out of the risk on bubble when this was

pricing. we're not in a similar situation where the market has been down so much. it's certainly not a put your money in and you're and what about the idea and i know you want to have your clients and puts there and and do you think that. >> i'm sure they felt some pressure. ultimately morgan stanley didn't want this deal to fail. >> nobody did. >> it's going to cause a lot of other problems. you could argue there's a problem with our ipo process and how demand is judged and how

things are priced. >>. >> exactly. >> is this right and we don't know, the deal was not appropriate. you can't put retail into the deal. i work for a big retail firm. you can't do it. >> come on, let's get the syndicate deposed. >> let's see what happens in discovery. some of the e-mails that get released. i think we're in inning two right now. >> i think facebook was pressuring part of the conversation in terms of how they priced this deal.

great conversation, everybody. thank you so much. we'll be watching this story, bill. >> yeah, i would have participated more but apparently the adults left the floor of the exchange here. i don't know what was going on behind me but i couldn't hear half the words that you guys were saying. we had guys hooping and hollering. >> maybe because we're up 80 points right now. i don't know. it looks like we're closing out the best week of the year for the u.s. stock market. the dow right now at 12,540. >> another hot show. we have a lot more ahead on "closing bell." keep it right here. >> announcer: inflation nation? >> longer-term inflation has been quite well anchored. >> announcer: fed chairman bernanke doesn't think so. so why is fedex hiking its prices? what it means for prices and your wallet. the president blasting the republicans. >> it would add weakness to the economy. but would mitt romney turn

the economic tide. we'll debate in the next hour. [ mechanical humming ] [ male announcer ] we began with the rx. ♪ then we turned the page, creating the rx hybrid. ♪ now we've turned the page again with the all-new rx f sport. ♪ this is the next chapter for the rx. this is the next chapter for lexus. this is the pursuit of perfection.

welcome back. let's find out what the movers and welcome back. let's find out what the movers and shakers are. >> a good reason to have you in the house. >> thank you. >> a stronger dollar often hurts materials. consistently stronger dollar can hurt materials with international exposure. perfect example, a tough day related to the dollar. and doing pretty well, anticipate international ones are not. >> brian, thank you. the dow is looking to extend the winning streak less than hour to go in what has been the best week for stocks in the u.s., despite all of the worries about our economy and europe imploding. in today's "closing bell" exchange, we welcome back our own rick santelli and steve liesman. we have peter and mark and martin let's start with you. we are concerned about europe. we are concerned about the economy but we have the best week of the year for the stock market. what am i missing here? >> we're getting saved by politicians in the bailout

world. >> you don't really mean that, peter. you're being sarcastic? >> i am truly not being sarcastic. spain will likely get a bank bailout. china cut interest rates. and if need be, and i don't think the s&p should be a 1310. with the help of central banks and money printing, that's why we are here. >> why would you even question -- >> you sound like you're on the other side of that trade, steve? >> no, i think what happened is the market smelled or priced in what has come true now. the market may be moving on to the next item. peter is right, though. i think what will happen, peter, is it's going to fall short of any kind of comprehensive deal. is europe going to solve the

problem. >> what is wrong. >> you have all of the central bank and and i think it's possible here. >> the bond right now is up to 25 basis points on the week. we have supply in 30 years next week. 66 billion, 3s, 10s, and 30s. to me it's not so difficult to get a bump in the equity markets. the real trick is two-fold. to keep it up there when the sugar ends and to turn that activity into something where private sector job hiring increases. those are lacking and i think bill and steve nailed it.

if anybody actually truly believes that giving spain more money is going to solve their problem, i don't think they have been awake. >> mark, what do you think? if the spanish banks need money, do you agree with rick and more bailouts are negative? >> well, i don't think it's necessarily a positive. ultimately it doesn't solve the underlying issues and certainly in the u.s. and china, although i think we remain the cleanest shirt in the hamper. that said, this is a pattern we've seen recently of riot response relief and this week was the relieve phase. unfortunately, i think we're still subject to riot as we have upcoming dates, the 27th, 28th, and 29th where we have a greek election in which there's going to be a lot of intrepidation with regard to what the outcomes are going to be. so far we're seeing more

disappointment and action. >> do we have any alternative at this point other than kicking the can? consider the alternative if they don't? >> unfortunately, that's all we're going to see. it's triage rather than solution. given the level of pessimism that exists in rick assets, that might be enough and whether it's predicated on actual action, which, again, the track record doesn't hold out much hope for that. >> i think that central bankers are going to try to inflate. >> at least to the inflation trade. now, the right thing to do, debt restructuring and debt right now and politically it's going to be

difficult to offend bond holders. the inflation trade to me is a safer place to be, relatively speaking. but the november election, of course, is going to be the most important factor through the second half of the year. >> and how do you think it goes? >> one more question for you, steve liesman. the fed meets the 19th and the 20th. what do you think they do? >> i think they may tweak the language a little bit. it depends on the data now and then and what happens in europe. >> you have the greek elections on the 17th. >> i just don't think you have a rationale right now because interest rates are so slow. it's very hard for the chairman to come forward and say we're doing something to make interest rates lower. i feel like it's about 50/50 right now. if i had to decide what the right thing was to do, i would say it would be additional quantatative easing. >> it seems like it's the last tool in the box. >> technically i'm talking, they could extend operation twist. they do have additional. they are running out. they have additional short-term securities they could sell in return for long-term securities.

they could buy more treasuries or buy more mortgages. that would be a step before they would do additional quantatative easing. >> thank you, everybody. bill? >> hanging on to gains with a dow up 25 points, maria. >> with the market moving higher, it was a tough couple of days. why is mcdonald's getting hit? >> while shareholders may not be so good for customers. fedex with a big price hike today. why, you ask? because of things people will pay up. but will they? >> we want to know what you think. do companies have to keep raising prices to boost profits? send us a tweet @cnbcclosingbell. i'm consolidating my assets. i'm not paying hidden fees or high commissions. i'm making the most of my money. and seven-dollar trades are just the start. i'm with scottrade.

i'm with scottrade. i'm with scottrade. and i'm loving every minute of it. [ rodger riney ] at scottrade, we give you commission-free etfs, no-fee iras and more. come see why more investors are saying... i'm with scottrade. come see why more investors are saying... so i test... a lot. do you test with this? freestyle lite test strips? i don't see... beep! wow! that didn't take much blood. yeah, and the unique zipwik tab targets the blood and pulls it in. so easy. yep. freestyle lite needs just a third the blood of onetouch ultra. really? so testing is one less thing i have to worry about today. great. call or click today and get strips and a meter free. test easy.

welcome back. last i checked, mcdonald's welcome back. last i checked, mcdonald's shares were trading lower after disappointing sales numbers and the fallout and down less than a percent, what do you do, last

talking numbers on the technical side, i never get your company's name right. what about mcdonald's? >> we go right to the long-term weekly. a beautiful trend channel. as we can see, mcdonald's is putting it near the bottom. once it finds it between 80 and 87, it will bounce and should bounce and, again, the medium or long-term investor, i like mcdonald's. >> as you can see, it's starting to reverse and it's a three-year upterm trend. when we put that trend and find

support and 15 to 20% decline. >> certainly a move to the downside. >> quite a bit move there. >> r.j., give me your take. >> mcdonald's is trading slightly lower in terms of our intrinsic value. >> even with the change of the helm of mcdonald's, does that bother you at all? >> jim has done a great job. we like what don has in store in the conversations with management. they have a great game plan for attacking international markets

and i agree. very often does mcdonald's go on sale and it's a great way to lower the cost basis on this name. >> what don't you like about yum brands? just the pricing or the strategy going on oh? >> i think there's another shoe to drop based on the exposure to china. obviously there's a concern about a hard landing there. while i think that yum's core concerns, the and a tough buying point for this company right now. >> maria? >> we were in the final stretch of trading for the week. dow jones showing a gain of about 70 points. 66 points higher. nasdaq, 63 points on nasdaq, bill. >> will fedex's latest price

increase be good news for consumers? fedex stock is higher today and you can bet other companies are watching, maria? >> we love hearing from you. we want to know whether you think companies need to raise prices to boost the bottom line? send us a tweet. we'll air your responses later on in the program. plus, stick around for the next hour of "closing bell." more on maria's big inclusive huge facebook losses at ubs. maria is going to have a cnbc exclusive with one of mitt romney's top economic advisers. glenn hubbard is joining us in the next hour. i don't want to miss that. you're watching cnbc, first in business worldwide. . tdd# 1-800-345-2550 i'm constantly working my screens. 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.

into the final hour of trading we go, we're looking at the best week of the year. the dow is losing altitude at this hour. we're not thinking it's a coincidence, courtney reagan

spent much of a week here. >> if only i had in a year for the major average, despite the fact there's been a bit of a defensive feeling for much of the week and even most of today. we're up 3.4% for the week. but this isn't being felt everywhere. if you look at the china-related etfs, the bigger ones, when china cut those rates it helped to lift u.s. equities, not the same feeling with the china-related stocks because of data points expected to be released. fears that more signs of slow down could emerge. maria, back to you. >> courtney, thank you so much. investors liking the news that a month from now shipping rates will be boosted by nearly 7%. get this, despite plunging oil prices, the company is keeping its fuel surcharge, bill.

>> let's talk about it. our next guests say get used to this. companies are seeing that consumer may not like the price hike in fees but they will pay them. good news for the stock, bad news for the consumers. for so long our economy was passing costs on to consumer. and i do think the inflation over last couple of months. and companies they send wide profit margins and they are monetary policy is as easy and it becomes more of the price

increases. >> the rise in prices is the cost of doing business. do you expect them to spread? are investors going gravitate towards raising prices? >> i think they are. you have the real space and a lot of investors getting pricing in airlines now. airlines are performing well as of late. and keep in mind the company has to recover higher fuel prices and it's occurring in the last fiscal year. >> you have seen higher inflation longer term because of the fed easy monetary policy you referenced? >> absolutely. there's 1$1.5 tril kren of exces

reserves. the fed committed to hold rates at zero percent for at least another two years and and at some of point the liquidity will catch fire in terms of higher inflation. not over the next couple of months. the good news is, that's coming down. that's going to be good news for the consumer. >> what is your take on how the economy will play out in the next six months? >> i don't think we will do another qe 3 unless europe completely implodes. i do see them potentially we

have a very divided fomc and the question is, what is the path of least resistance through that? it may be abs bankruptly ending it at the end of june, given the unemployment uncertainties, problems in europe, that's what the fed will do. i don't think we'll see more qe. i think that's why the dollar has held up relatively we feel over the last six months. >> we'll leave it there. gentlemen, thank you very much. we appreciate your time tonight. we're in the final stretch at the end of the week. retail is doing better. technology is mixed but dow jones industrial up 60 points. last week was the worst week of the market, and this week the best week of the year for the markets. what about next week we now wonder? we have two of the top stock jocks joining us in a moment. and ubs and facebook ipo, hundreds and millions of

dollars. there could be messy lawsuits with the nasdaq. i'll have the latest on these developments coming up. and then president obama said that the private sector is doing just fine. maria is going to get reaction on that from one of mitt romney's top economic advisers, glenn hubbard. don't miss that, coming up. .

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.

welcome back. seema mody has her eye on the techs. >> zooming in on yahoo! bernstein upgraded the stock to $19 a share. the sale of yahoo! stakes in the asian stock, conservative floor to the share price. micron trading well below the 200-day moving average. a quick check on facebook as we approach the final trade. perhaps sharing trades today, the stock, though, is still trading lower on the week. of course, it's been three weeks since facebook's ipo. back to you. >> well, what a difference a day makes. we had the biggest -- worst day

of the year last friday. we expected the worst on monday. instead it's been the best week of the year. go figure. and we're in correction mode and that's certainly not the case. >> with us is david from morgan stanley smith barney. gentlemen, good to see you. thank you for joining us. we had the worst job numbers in a long time last month. we had uncertainty around a number of situations in the market. facebook included. and yet we have the best week of the year. what is behind that? >> gasoline prices are down 19 of the last 20 kays, down 8%. house prices seem to be making a bottom here. plus, finally t. looks like over the weekend there might be a small minuette dance from

germany and spain. germany seems to be relenting just a little bit. >> wait a minute, david. we're going to give you a prop here whether you want it or not. >> we still remain cautious. we still think the market will end lower. we have a fiscal cliff. they have been very weak. personal income extremely weak. the big driver of the u.s. economy fundamentally has not shown a lot of robustness. we remain couch shaus. >> peter, are you? >> yes. and have been since march. a bit early, unfortunately. i would say that towards the employment picture, the employment population was actually a bit better and that the payrolls number, on its face, was actually not as bad as most people interpreted it to

be. what we saw last year is still present for both the u.s. and europe. mostly in the form of debt at the sovereign level. >> you want to see the greek voters a week from sunday, not this sunday. you will see some trends there. the big day is the 17th of june to the degree we don't have to go up to the 1 # 1th hour, the markets seem to be shifting a little bit of german flexibility and germany wants more control centrally, not just germans, but over the budgets and the fiscal rectitude that seems to be what is driving. and the bond yields come down a little bit. all of these spanish bonds, italian bonds.

>> peter, how do you want to be invested? give me your sense of what areas are protecting yourself as well as where the downside risk is. >> well, we've been recommending to our clients to bring down their net exposures and to be well hedged. because we're an options desk and obviously that's what we're focused on. so if you have long exposure, if that tail event occurs, you want to make sure that you are well protected so you can be long volatility products, like the vix, although we don't like it as these levels. we think it's expensive. or you can do things like long s&p put spreads and you can fund the put that actually protects you. we like people to be well hedged in this environment and from 1340 to 1360 we're looking to have people augment those

hedges. >> we're going to leave it there. gentlemen? >> thank you for joining us here at the new york stock exchange. heading towards the close and getting stronger as well, dow up 82 points. >> bill clinton now apologizing to the president for something he said on this program to me earlier this week. bill griffeth and i will discuss the bizarre aftermath of clinton suggesting that the tax cuts should be temporarily extended. what a week. >> that began the week. and after the bell maria brings you the latest on her exclusive on the hundreds and millions of losses apparently mounting at ubs from facebook's glitchy ipo. medicare. it doesn't cover everything. and what it doesn't cover can cost you some money. that's why you should consider an aarp...

medicare supplement insurance plan... insured by unitedhealthcare insurance company. all medicare supplement insurance plans can help pay... some of what medicare doesn't, so you could save... thousands of dollars in out-of-pocket expenses. call now for this free information kit and medicare guide. if you're turning 65 or you're already on medicare... you should know about this card -- it's the only one of its kind endorsed by aarp; see if it's right for you. all medicare supplement plans let you keep your own doctor, or hospital that accepts medicare. there are no networks and no referrals needed. help protect yourself from some of what medicare doesn't pay... and save up to thousands of dollars in potential... out-of-pocket expenses with an aarp... medicare supplement insurance plan... insured by unitedhealthcare insurance company. call this toll-free number on your screen now... for this free information kit, including this... medicare guide and customized rate quote.

were finishing up about 90 points on the youfiscal cliff. and we have it just in case and to avoid doing anything that would contract the economy now and then deal with what is necessary in the long-term debt reduction plan and i think what it means is that we will have to and that's probably the best thing to do right now.

>> another network, amazingly, here's what he said about that. >> i'm very sorry about what happened yesterday. what i thought -- something had to be done on the fiscal cliff before the election. apparently nothing has to be done until the first of the year. so i think he should just stick with his position. >> few people are savvier politically than bill clinton. >> absolutely. bill clinton is very savvy and brilliant. he says what he feels. remember two weeks ago he said the greatest thing about not being president anymore is i can say whatever i want. >> unless you're a proxy for the united states which he is right now. >> what my sources told me is as soon as that interview aired, the phones were on fire and his aides were getting calls and the white house was telling those aid aides, you have to come out with a statement. so they were under pressure to come out with a statement and

soften the idea that the bush tax cuts should be extended. what he said next is they should be extended but they shouldn't be extended permanently went off of the rails, and it's pretty amazing. >> i have to say, good stuff. >> it's really amazing. up next, we'll go right back down to the closing countdown. we're a few minutes away from the bell. >> after the bell, maria will have more on the fallout from facebook's ipo. the losses are apparently mounting in the millions of dollars. you're watching cnbc, first in business worldwide. [ male announcer ] citi turns 200 this year.

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. so why should our anniversary matter to you?

because for 200 years, we've been helping ideas move from ambition to achievement. and the next great idea could be yours. ♪

take the privileged investing tools of wall street and make them simple, intuitive, and available to all. distill all that data. make information instinctual, visual. introducing trade architect, td ameritrade's empowering web-based trading platform. take control of your portfolio today. trade commission-free for 60 days, and we'll throw in up to $600 when you open an account. okay. coming up on the three-minute mark, you have probably heard by

now, best week of the year for the major averages in the stock market. it's one of those weeks where you have to scratch your head. the averages defied the odds. let me show you, let me remind everybody, the worst week of the last week of the year, bumping along monday and tuesday and off to the races on wednesday and we never really looked back. the dow finishing near the highs of the week with a gain of 3.47%. last week on the ten-year, the yield at the lowest ever at 1.45, 1.44% and then it came roaring back as they sold treasuries to buy stocks, especially on wednesday. we're going out this week with a yield of 1.62% but yields -- mortgage rates are still at record lows right now. a gain of 1.3% for the week at

$84.33. gold, though, a huge gain early in the week and then it stumbled at the end of the woke and we're finishing down at $1593. as for the sectors, technology back in the driver's seat. materials, financials having pretty good weeks here. alan valdez, you're the guy that gets to explain to us why yesterday we were watching the market melt in the last hour. now we're watching it melt up. >> i tell you, bipolar markets here. yesterday the market did not like what it heard from chairman bernanke. we closed up only 30 points. they didn't hear what they wanted to hear. today we're getting rumors out of europe that spain is getting a lift. the president spoke today, basically begging for action out of congress or bernanke. gold took off. you mentioned it before. that moved the market. don't forget, next week is a

triple switch that end of the quarter, end of the half. >> you're still cautious on this market. what are you waiting for? a certain price point or some development? >> five things. you've got the elections in greece. you have the announcement of the policy, more quantatative easing. >> do you think they will? >> right now we're giving it an 80% chance that they will do something, bill. and the supreme court ruling on the affordable health care act. on friday greek is up, spain, germany, france. and then finally, bill, it's the euro summit, the big one at the end of this month. >> a lot to get to. that will do it for the first hour. today ringing the "closing bell,"