happy happy friday, welcome to "closing bell." i'm maria bartiromo. this could be a very interesting hour of the markets. will investors sell because of the greek elections? looks like it's holding so far. >> it has been a very volatile week for the markets, especially the final hour. you missed a big one yesterday and it could be a wild one at the close again here today. we have theics per ration of futures and options today. we had it on the open, we'll have it on the close, what is

commonly called quadruple winching. stocks are holding on to gains. just off the highs right now. the do you was up almost 100 points, just off that now with a gain of 85. the nasdaq is also higher today with a gain of 26 points. up almost 1% at 2862, and the s&p is up 9 points, a 10 point gain there. >> give therein is a rebalance and expiration, can that will add to the volatility. we have an 85 point rally so far. do you want to be bracing for a round of panic selling on monday if the outcome of the greek elections have the austerity. >> let's hear from market watchers in today's closing bell ex-change. we have morgan stanley

representative here, we also have rick santelli. why are the markets rallying going into a scary election for the world economy? >> you have the manufacturing in expansion territory. they're above 53. you had weakness in the fed and empire state manufacturing. that's basically been holding things down. i think maybe saying you see these election holes, saying that maybe the centralist parties might be able to put together a coalition and keep grease in the euro. if they leave the euro, you will have great hardship for grease. germany's choice is a pugnant outcome and a ruinous outcome.

>> joe greco, what's your take on this? >> i think clearly the markets have spoken already today, i don't think we see a sell off. we tested this resistance level that falls between 1338. but monday morning we either know that greece plays ball or they don't. if they do, great, a little bit of the cloud is lifted and sun is coming in. if they don't, then we start seeing pressure on the fed that comes a few days later. the world really isn't working to our advantage here, we need to make sure things at home are working good. >> rick santelli, many central banks are standing by with a backstop saying they will provide liquidity if necessary.

>> it's an important function, it doesn't do anything to solve the long-term problem and that's what credit markets have been telling you. we're down about six basis points on the week. just because they had such low yields about two weeks ago due to really tight pressure anxiety. and it's above 126 today, and it may be what most traders are looking at most aggressively to trade when we start getting results sunday evening. >> mandy, it will be interesting to see how the markets trade, asia will have the first crack at it. >> yes, it will be interesting. it's a good test. do keep in mind that a lot of asian markets do not develop,

they're classified as emerging markets and they can have a larger percentage drop or gain depending on their knee jerk reaction. the markets ignored the negative news and the u.s. economy. consumers are feeling more gloomy about things, and they're really latching on to yesterday, what we called the global central bank put. >> that's what we are seeing in japan and all over the world, the chinese as well. really reacting to this slow economic story globally. >> you see the markets rally, you want to see the central banks act swift with resolution, and coordinated. if you see that the markets can fly. if you sell off on monday in response to a greek exit, the markets will think that the

teacher got control over the classrooms and the authorities are in control of the global financial system. >> so you think who wins will dictate if grease stays in just by who is elected? >> it will give you an indication. it takes too much time. the corporations will be bankrupted, hardships, there will be riots on the street. there will be unrest. it will take some time. i think you will see the central banks as mandy and rick santelli side. they telegraphed this message this week. that's why i markets have among in this week. >> the dow jones industrial average. thank you we'll see you later. if there is chaos in the streets on sunday night, it is probably good news for your money and the market. if the streets are calm, the

market and your portfolio might be anything but. michelle, what can you tell us? >> you laid it out perfectly. if the people here in greece vote for the probailout party, you can see the markets rally and rioting in the streets. the anti-bailout calm in the streets but a fall in the markets unless central banks step in. behind me they are cleaning up one of the final acts of political theater as we count down to sunday. antonio, who could be the next prime minister of greece held a rally here. between 10 and 20,000 people showed up. one of the last big speeches, and he framed the debate this way. that a vote for him is to stay in the euro. a vote for the opposition party,

syriza, would billion to leave the euro. they want to stay in the euro and renegotiate and change the terms of the bailout, but the world sees it just as it was explained by mr. darts. if they sustain it, great, and if they don't we could see a great unraveling. there is so much hanging on this election on sunday. it will be pivotal. that's why we will have special coverage at 8:00 pm on sunday night that explains how greece got into this message. it's a year's worth of coverage and interviews to you can understand exactly how this is happening. >> and we will have live coverage break ins as the election results are coming out and any market response that occurs starting in asia on that sunday night as well. we look forward to that, thank you, see you later.

>> we're heading to the close, here we go. the last hour the do you was up 82 points. >> we could see another wild ride in this final hour of trading. >> fasten your seat belts it could be a rocky ride as we wind down the market trade. we will help you make money these last few minutes. recent images of violence stoke fears about greece's future. is this discontent what wall street is looking for? what it all means for investors straight ahead. . laces? really? slip-on's the way to go. more people do that, security would be like -- there's no charge for the bag. thanks. i know a quiet little place where we can get some work done. there's a three-prong plug. i have club passes. [ male announcer ] get the mileage card with special perks on united, like a free checked bag, united club passes, and priority boarding. thanks. ♪

okay. what's your secret? [ male announcer ] the united mileageplus explorer card. get it and you're in.

all all right, the markets holding on to gains right now as we head toward the close for the big greek election weekend, the dow up 86 points. it was just brought to our attention as well that a

exchange fund, the greek etf, today, up 7% right now. >> isn't it interesting they're buying right now. it's up five and a half percent. >> still, this is not what people were expecting to happen ahead of time. who wanted to be long this market going into the greek election. we'll see what the results are come monday. >> that eft. now joining us for what to can expect is paul shatz, scott wren, and jeff davis, thank you for joining us. paul, let me quick this off with you, what are you expecting today going into these greek elections. initially there was a school of thought that people would not want to hold stocks going into the weekend for greece to the fed meeting that's week, the g 20 meeting next week, but this market is holding. >> i think yesterday's news was a very short-term game changer,

but this action we're seeing right now worries me more than any other act. we have a geo-political event on sunday, and it's a huge risk on trade. you're only seeing the opposite. sell the rumor, buy the news. we're seeing the opposite. if we spike up on monday, any strength, 100 to 300 dow points, i don't like this action. no matter what happens in greece, the job picture still stinks in the united states. >> i'm the opposite, i think investors are overpaying. i think european stocks have never been cheaper. they're looking good even though you can expect a bumpy ride. i think the greek vote will be a temporary move, up or down, and i think you're going to go into the next week -- one thing we haven't talked about was housing

data coming. and i think that's the emerging sweet spot for the u.s. economy. >> i haven't heard that in awhile, bill. sweet spot. >> and it has not been lately, it's been showing signs of weakness. why are we higher going into this weekend. >> traders have been positioning themselves the way they want to be. we had a lot of guys that were short, there's a lot of squaring up on here. i don't think there are people laning and -- people may be laning a little bit, but they're not betting the farm on what will happen sunday. >> how do you want to invest in this environment. going into monday, do you share the view that monday could be a selling opportunity if we see strength going into the weekend. >> the bred and butter here are retail investors. we want our retail investors investing for nine, 12, or 18

months or longer. we have been getting our investors positioned for what we think is the next up leg in this market. we had our clients in here trying to buy consumer digressionary stocks, the stocks that have been hit on this pull back and certainly if these anti-austerity coalition wins -- i don't think the stocks will like it. we look at this as an opportunity to buy stocks, trying to play the next 12-18 months. >> paul, how would you position yourself, what are you going to do here? >> paul, if we are big monday, i'm a selling into the rip. if we had this big gap down, i would like to see it down and selling into tuesday, we love

consumer staples, i love digressionary as well, and biotech. but i will not chase it on ridiculous news with the economic output of indiana. >> you realize the magnitude of what we're talking about here, potentially the future of the euro zone. >> think it's the single most overplayed story in two to three years. we never figure out how to win. we never addressed a country exiting. if greece can figure out a way for greece to exit and default somewhere, i don't think it's a guy january tick game changer, i don't. zluf exactly. they are not even needle movers. >> thank you father's day to

you. >> great, we have a final stretch here. on top of that big rally on yesterday, 90 points on the do you industrials. >> a tablet fist fight. will a rumor tablet fizzle out like the zune did. how are major corporations u positions themselves? stay with us.

welcome back on top of everything else going on there is a tech rumor making it's rounds and raising a lot of eyebrows. our john ford is in san jose california with details about a potential game changer from microsoft. >> the rumor is an ipad killer. microsoft doesn't make pc hardware. they left dell or hp make it. a tablet would be risky because it could be a death sentence for partners. they're either handing out a generic tablet, limited distribution for developers, or getting into the ereader space.

i can tell you micro soft has been building on samsung for weeks now. it was not planned as a big product unveil. and it's an important time. google is ready to launch a tablet. and amazon is bound to update the kindle fire soon. >> we're in the final hour here, and we have microsoft shares up 2% today ahead of this major announcement we're expecting on monday. many say that the announcement could be the tablet john just told us about it. is it really a game changer? the stock has not done much in five or ten years. looking at microsoft right now. let's start with the fundamentals, what are you seeing in terms of microsoft

right now. >> they're an excellent value play. it's always one of the stronger quarters of the year for the company. in terms of this announcement on monday, if you see a tablet come out, this will not move our numbers. it will not expect many units to be sold. it is a here row device that shows off the potential of the platform. >> so you don't think this is a game changer then? >> i don't. >> okay, jc, let's talk about the valuation here for what the stock chart looks like. what do you see with microsoft. >> i will disagree slightly. i believe if we get fruition with a new product, it will be a move higher for microsoft. i'm drawing a line in the sand at $30. now today, at the end of the

day, we're approaching the close and trying to get above $30. it would be crucial to mark out a short term bottom. and i rumors going into monday, we could see a pop to 33. >> so you want to buy right here, what's your time frame? >> close today or monday above 30. you know how fast these things move. look at apple when they have new products they can jump very quickly. >> very interesting, what do you think about that are you a buyer or seller? >> i'm a buyer. i don't think you're going to see a 10% move in the stock over the next couple days. when you put a strong numbers, right? even despite some of the slow downs in europe that will push this higher, microsoft has been steady and an excellent name. >> what having all that cash too, thank you very much. by the way, we want to know what

you think. send us a tweet and let us know what you think about this. what do you think about the microsoft tablet. tweet us at cnbc closing bell. your comments coming up on the air. >> as we head towards the close, the dow up 92 points right now. europe or china, what's a bigger threat to the economy, sam allen who is ringing the closing bell will join us momentarily, and is a debt crisis in the u.s. inevitable if those in washington don't act soon? tdd# 1-800-345-2550 the spx is on my radar. tdd# 1-800-345-2550 we're hitting new highs. tdd# 1-800-345-2550 and i' top with charles schwab. tdd# 1-800-345-2550 tdd# 1-800-345-2550 i use streetsmart edge and its tools like... tdd# 1-800-345-2550 screener plus - i can custom build my own screens tdd# 1-800-345-2550 or use predefined ones. tdd# 1-800-345-2550 and i can trade wherever i want,

tdd# 1-800-345-2550 whenever i want. tdd# 1-800-345-2550 the kicker? tdd# 1-800-345-2550 i pay $8.95 a trade. tdd# 1-800-345-2550 that's a deal in any language. tdd# 1-800-345-2550 open an account tdd# 1-800-345-2550 and trade up to 6 months tdd# 1-800-345-2550 commission-free. tdd# 1-800-345-2550 call 1-866-393-6174. at liberty mutual, we know how much you count on your car, and how much the people in your life count on you. that's why we offer accident forgiveness, where your price won't increase due to your first accident. we also offer a hassle-free lifetime repair guarantee, where the repairs made on your car are guaranteed for life, or they're on us. these are just two of the valuable features you can expect from liberty mutual. plus, when you insure both your home and car with us, it could save you time and money. at liberty mutual, we help you move on with your life, so get the insurance responsible drivers like you deserve. call us at...

or visit your local liberty mutual office, where an agent can help you find the policy that's right for you. liberty mutual insurance, responsibility -- what's your policy?

welcome back to the program, deere and company is remaining on mystic and they raised their profit outlook for the year and expect their sales to rise some 15% for the year. here to talk about deere's business, sam allen who will be ringing the closing bell to

celebrate the companies 175th anniversary of farm equipment. it goes back a long time, doesn't it? >> it does. >> welcome aboard. with europe slow, china slowing down, where will you get your 159% gain in profitability? >> we're seeing strong sales in ag equipment in the u.s. and canada, also in brazil. even while europe is slowing down, the majority of agriculture is germany, france, and graet britain. we're projecting the industry will be up 5%. >> brazil, great opportunity for the agricultural part of the business. we have greek elections this week, if greece leaves the euro, what kind of an impact might you

see and how tough as europe been. >> it is not so far having a significant impact. we're in the northern part more than the mediterranean area. it's more vineyards and specially crops, and that's a area deere plays strong in. we have taken extra steps to make sure the money is tied up in spain, italy, or greece, and we're obviously very, very concerned about the contagion and the fact of what might happen in greece might bring down spain. that might have another impact on brazil. >> that's the word, the contagion. >> yes, we watch very closely and every week to two weeks we have risk reviewed to make sure we have the best assumptions in our models right now what we would do in the event of. >> we have contingencies, some of them can be definitive,

others hypothetically, there could be different variants of that. here is the path we might go down. yes, we're ready to pull the levers to continue to minimize exposure. >> it's not just agriculture, but construction as well. >> we've been fortunate, we very much were north american centric. we're now america centric and starting to move into kind ya and cry in a, but we're not in europe in any substantive way. so for us, construction equipment continues to grow. we're forecasting it will go up by over 20% this year. that's primarily a north american phenomena with additional additive of south america. >> have you seen a real pick up? tell us about the last six months to a year in terms of that construction equipment. we're all trying to figure out about housing. >> right, and we have not seen

it because of housing, but we have seen a true substantive pick up. what we are able to track is rental utilization rate in our dealers and it's a leading indicator by about six months, and if utilization is going up the markets will continue to go up. they have been going up for 26 months now and continue to go up. we have not seen any indicator that says the market is turning back down, surprising everybody in the industry because of a projection of 770,000 housing starts, you would not have thought we would have this robust market. but we remain and our dealers remain pretty optimistic. >> even if our profitability projections, the stock is down. you think wall street is just not buying into your projecti s projections. they're seeing ch more slow growth than you're seeing right now? >> no, the 3.35 billion in net

welcome, that would be an all time record, i think they all believe that. i think they believe this record is above last year's record. i think for a if you remember of people questioning this ag boom we've had, driven by the u.s. and canadian farmer, is this at the peak, and swhen the inflection point. >> what do you think? >> our argument is it is a different time than twenty years ago. doubling food output will keep commodity prices at a higher level. there will be ups and downs but they will be at a higher level, and in an environment where farmers can consistently make money. we think demand can stay at a more proportionate rate for our equipment. so we're not, at this time, projecting a major deflection point down. >> are you holding back for allocating capital right now because of the uncertainties out

there, regulatory or tax policy. is that holding you back? some ceo's say there is uncertainty in that regard. >> i think if our business was not running as strongly as it is right now i would be holding back and i know a lot of fellow ceos that are. we're building 7 plants, investing at record levels here in the u.s. and overseas, but it's because of these trends that we're also influenced by the fact that we're at record levels of profitability. >> thank you very much. we're in the final stretch, 25 minutes until the closing bell sounds. the dow industrials up about 93 points. stocks may be up this week, but is it really because we're betting on more bailouts?

brian murdoch weighs in on that. could nasdaq done more to prevent problems around the facebook deal? that's what i recently asked bob -- >> do you regret not holding it. the set of facts we had at the time where we knew we could run the cross and successfully, that was the proper decision to make. >> the fight over facebook's ipo continues, new details next. but first before go to break, the dividend. which commodity is the worse perform ther year? coffee, corn, or cotton? the dividend pays off after the break.

just before the break we asked which commodity is the worse performer this year. coffee, corn, or cotton? now the payoff. coffee which has declined about 35% year to date. so, will stocks hold the gains ahead of the key election coming in greece this weekend? mary thompson is keeping an eye on the markets for us. you make sense of this for us.

>> looks they they will hold the gains, the question is will they next week. expectations for stimulus driving the markets. here and abroad. as we go into the close, the dow industrials the best performers. i just want to show you the stocks that contributed to the dow's gains this week. johnson and johnson up on the adding of synthis. ge east gains up. industries, materials, and energying ul winner this is week. jpmorgan higher after investors applauded the testimony of jamie dimon down before a senate hearing on wednesday, and at&t reflecting gains in teleconn stocks. >> we're less than 20 minutes

away from the closing bell right now, wrapping up quite a week on wall street with this rally continuing 20 points. and a very volatile few days here for shocks even though we're higher for the week. these swings make retail investors nervous. joining us is brian murdoch, a ceo and they oversee over $200 billion in assets. and you have to make sense of this as well, what do you make of what we're doing here ahead of the greek elections on sunday. >> i think this is just a general trend of derisking. people are in the habit of going to cash when they are nervous and they don't make any cash on that. so it's who can hold their breath the longest. is that what the retail investor is doing right now? >> maria, people are setting asaid that on again off again

risk adjustment. we're seeing a lot of flows from equity in the fixed income. we think is the wrong time. we have had a 30 year bull market in fixed income. so you have had a special situation with returns on income volatility. that can't be if returns are zero to two percent. if rates start to go up that mark to narcotic on your bonds will go down. and people buying bonds will be driving right into the next problem. that's a big problem. >> but if they want more income, they have to take on more risk anyway, right? >> exactly they will have to do what they haven't had to do for a generation which is matching assets and liabilities. all of the focus has been on the asset side, not on the liability

side. like retirement income, what do the baby boomers do? can they live on zero to two percent on their money? no, so what's the liability trying to match to and what return they can get, stocks and bonds on that blow. what are you seeing for the retail investor right now? >> we see them loving away from equities and bonds. >> do you blame them? >> not really. they need some structured solutions that offer them more outcome oriented investing. so for the last 25 years we talked about benchmark so you want to outperform a benchmark, but we're beginning to see new flows, so can i get a rate of

return and 300 or 500 basis points. >> we hear from a lot of defensive money managers when they come through here and they go for the dividend pairs. >> correct. >> they feel that's the place to go right now. >> they're getting returns. >> you can get a dividend yield that extends the ten or 30 year treasury. >> it is higher than the tenure. >> that's correct, but that's not an undiscovered country any more, so everybody is doing that. it will be dichgs. >> what happens if the tax treatment changes. >> that's an unknown. >> do you think that has an impact on the dividend payers. >> that will have a huge impact, so at the end of this calendar year, if that seems unresolved and that changes, there will be a lot of transaction in dividend paying stocks. >> would you unvest in europe right now?

what i keep hearing is when you take out the financials, there are plenty of good, solid corporations especially like germany. >> sure, but you can buy, if you want economic exposure in europe, you can get it without having to buy a stock. it will be a tremendous head wind until those issues are resolved. they're just undercapitalized because of the balance sheets, and until that is addressed i think the stock market will be under pressure. >> they have three requirements. is that because they can't sell the assets at the price they want? they're not going into the market? i think it's denial. remember if they spent two years arguing about liquidity prices when all along it was a solvency

issue. so the pannish banks have exposures on their balance sheets equal to the net equity on their balance sheets.ets. the u.s. dealt with the issue pretty quickly. europe has gone through two bank tests, the undercapitalization issue remains. i think that will be an issue that i have to address. so they did a good job putting a wall of money up. they didn't recap the banks, they wasted precious time. >> good to have you on the program. >> thank you. >> come back soon. >> heading toward the close, about 15 minutes left here, and hanging on to these gains. it is quiet. it has been a roller coaster week of investing.

coming up we will look at this crazy week and what it may be telling us about the market moving forward. >> and microsoft set to unveil their own tablet. it can eat away at apple's dominance. tweet us your thoughts on that @cnbcclosingbell.

if past perform is any indication of the future you may be getting motion sickness from the late day moves in this market again. >> it's been remarkably smote today, but that is not the norm lately. we're looking at the late moves in the day and what they're telling us. >> stable today because everybody is waiting for that greek vote on sunday. this is the six behind vix.

we want to focus on your hour, 3:00 to 4:00, most important trading hour of the day. on monday, there is the green, the last hour of trading, the six up 3.66%. on tuesday, a little more muted, the vix came down just a bit. it was off about 2.1%. tuesday, that hour was not the most volatile hour, but still reasonably volatile. wednesday another uptick. 1.5%. we were more nervous again. yesterday was a doozy, i know. right about 3:00 all of the reports, rumors, and headlines about coordinated central bank action sending everybody into the market and the vix absolutely tanked as the stocks road and the vix fell about 8%

yesterday. this hour has been absolutely nuts, not only in terms of volatility, but volatility as well. so it's a little stable, waiting on greece, right? >> so what do you make of this rally? it's stable but up. >> if all of the central bankers in the world are going to get together on a conference call and decide to inject a lot of liquidity around the world, this is what we get, right? >> they will take it to heart. this week, the first hour and the last hour is when the traders really show their hands. the first hour is the european trader showing their hand following what they had, but it's the late day trade, the last hour, when the traders here in the u.s. are preparing themselves for whatever is to come. and interestingly, something will happen from the banking

system that will allow liquidity to remain at levels that will be conducive to another rally. >> that seems to be what is behind this rally. we're to the extent, of course, it will tell us if it stays in the euro zone. it's more about central bank easing. >> these banks are standing ready to do any bailout that's required. they're viewing the market as not being able to operate efficiently and on it's own. if the greek election goes well, people say that's good news. if the greek election goes poorly where they get a majority and no government can be performed, then there is the view that all of the central bankers have to step in and that may also be risks. it's been a no bad news is bad news market, right? >> exactly. we should also, let's fate it as well, the expiration will have

an impact on the market and some of the volatility this week as well. and we have the quadruple winching finishing up. >> happy friday, i'll be on the air sunday night as well. >> we have the closing countdown. >> well get to that and show you what happened this week. and you know the saying buy when there is glood blood in the wat. coming up on "closing bell"

now, really? it's matthew's last day. we're going to miss you, bud. he is a big future. okay, here we go, three or four minutes left. and this is what has been all about ladies and gentlemen as we watch the trade of the euro. it's the future of this currency that we're all wondering about. the last few weeks we have been sitting near two year lows, but late in the week you started to see this rally going into the greek elections.

we're all wondering about that. the other thing we have be watching is the greek market itself that has been rallying. yesterday it was up 7% in one day, and we followed suit in all of that. what does it all mean? we will know in the fullness of time. otherwise, our market followed suit here. we're up 118 points on the dow right now. the ten year yield as stocks were going higher the yield was going lower. we have the tenure auction on wednesday, and you see what yield did asasn as the auction results were announced there. near major lows there as well. oil holding steady, opec meant this week maintaining production where they are right now.

that put a floor under prices for wti crude here in new york. gold six straight up days now as the euro was going higher and the dollar going lower. that props up gold and it's up. telecom heavy this week, allen valdez, why is our market rallying assuming it's not just about the expiration, going into the greek elections? >> it's not all about the triple winch, but it's part of it. you see a lot of short cover and a lot of guys now, two weeks at the end of the quarter, end of the half, these guys sign their check and say what are you doing so short? so we just broent 1341 here and this market could really rally

if they come off in any slight positive tone. >> and the announcements yesterday for a coordinated backstop. >> you have monday, tuesday is the g 20 in mexico in cabo san lucas. wednesday is the fed meeting. they said if things look bad we will step in to help. thursday is the lead ind ka stores and they could be a little weak. they are sloppy. two months in a row, down. friday is the mini summit of france, germany, italy, and spain. >> there's a lot going on next week. >> a lot of things going on. i want to say one thing to the mothers for father's day. the greatest gift that we as father's can receive is to be said that we're superman and their night in shining armor. >> well said, my friend. thank you very much. what a crazy week we're