tomorrow we'll do the whole show in austrian. we have a special time for me tomorrow. big day for me. check it out tomorrow. hi, everybody, we're into the final stretch. i'm maria bartiromo, folks in a good mood today. >> i'm bill griffeth. and folks are thinking the fed will help the economy when it issues it's statement tomorrow. in either case, both will help the major averages into the home stretch here. anything can happen going into the final hour of trading at post nine where we sit.

the dow is up 1616 points. the nasdaq up another 1.25%, or 36 points. it's knocking on 3,000's door again. and jpmorgan chase today rallying. jamie dimon faced the house financial services committee today despite testy exchanges about his bank's trading debacle. we'll have the highlights in just a moment from that testimony coming up. >> the financials were strong again today just as they were last week when he was testifying before the senate banking committee. stocks are rallying perhaps on hopes of operation tulowitzki. rick santelli has a refresher

what the twist is and what it may do for the markets. >> you know what, i agree with your metaphor and analogy, but whether it works or not, and what long term prognosis is, and if we get a little time for the operation and how the markets respond, let's leave that judgment for somebody else. it got it's name flt first time it was used in the kennedy administration. the yield curve is normally upward sloping and purchasing longer dated treasuries and selling shorter treasuries and twisting the loan curve. but the action of just buying is what we deem unsterilized, and market participants get their hair up a bit on it.

the sterileization process of buying an equal amount of longer maturities and selling that same amount of short maturities make it a little less sinful for those that don't like market involvement by the federal reserve. if the operation works or not, we see markets get used to these programs. they assimilate and accommodate, and when you talk about extending this program that is meant to keep rates low, it's a positive for riskier trades like equities. >> stay right there, we will bring in the closing bell exchange panel right now. >> steve, it looks like markets are keeping a tab on headlines out of europe. >> yes, that's what i've been doing for the last hour.

merkel had a chance to purchase using the upn rescue fund, to buy spanish and italian debt. yes, it is possible. but there must be a question from italy and spain to do so. that's the procedure, and then a quoted german official said it had not been discussed at the g 20 meeting like suggesting. the markets seemed to go up on that story. i'm not hearing a whole lot to it. i think it is out there as a possibility. that's what rest cue fund was created to do, to buy these upons if we get into a situation where it's deemed it would be good policy to do so, and the decision is made and they decide to do it, but i'm not hearing that it's eminent. >> doesn't it also show us how high expectations are going into

this? i have traders telling me this could be a classic sell the news situation. but coordination with europe and the fed are extremely high right now. >> i just wonder if the market is aware -- europe doesn't have nothing. there are tools that have been put together for certain rescue operations. i don't know that the market is aware of this and it comes out and you know there is this money there and there was a german official arguing that the market has not given europe enough credit. there there are certain mechanisms out there. >> tom, what do you think is behind the rally today? is this in anticipation that the fed will do something tomorrow, and what about what brian points out? >> i think it's part of it but i think the market was very, very oversold. you had the problems stemming from europe, that big win in

wisconsin. that sparked the rally. now you have everyone thinking that operation twist will come into effect so people are buying into it. what happens tomorrow will be a cause for concern if people stay in the rallyover take chips off the table. >> so you think it's a oversold position? >> yes, if they do, if they continue operation twist, we could have a further rally going into the second quarter numbers. >> steve, you will be at that news conference tomorrow, what are your expectations about what the fed may do? >> i think the best way to think about it is the different extremes. i don't think the fed is ready, yet, for a full out full blown qe. i don't the bernanke would have the board on board with him to do that. i think the best place for money

is on the expension of twist with expension of the guidanten. that would be the upper limit of what i think the fed would do form. extend through september and wait and see. >> i would think with a rally if it really had teeth and strength, we would get a spike in yield on something like the tenure. people tend to look at the bond market for more rational thought, so i was curious what you thought about that. >> this is only my opinion, but i think we're up about four basis points into ten, and i think it has more about what to do with what the boom is doing in europe. it seems to be recalibrating. they're now above 150 at a four-week high yield because i think rates inflate to safety. we're too low, and europe has done a good job buying time. >> rick, i need to add that the

german official i spoke to is aware and believes the rates are climbing because they believe the market thinking the market will be called on to do for more europe. >> tom, these are all great points, but we can't fight the fact here there have been trends in the economy. next time it could be even worse. they want to be ahead of the curve to make sure they don't get pounded on if they're too late to react. >> after that number, you're right, the job numbers are horrible. >> thank you, everybody. >> thank you, guys, see you later. do you think the fed some come to the mark's recue again? we head to the close with 52 minutes to go, all of the major averages up about 1% and we're at five-week highs right now.

>> we have a pair of big guests looming on the fiscal cliff. >> rising interest rates in europe, a coming attraction to what we could see in the u.s. former senator allen simpson explains why we could be in for fiscal chaos. and how will mitt romney right the ship if taxmeggedon happens. awards lift you up. but they can also hold you back. unless you ask, "what's next?" introducing the all-new rx f sport. this is the pursuit of perfection. wanted to provide better employee benefits while balancing the company's bottom line, their very first word was... [ to the tune of "lullaby and good night" ] ♪ af-lac ♪ aflac [ male announcer ] find out more at... [ duck ] aflac! [ male announcer ...forbusiness.com. [ yawning sound ]

♪[linkin park "burn it down"] ...forbusiness.com. ♪[rock] ♪ [narrator] can't wait for the honda civic tour featuring linkin park? neither can we. go to facebook.com/hondacivictour for details.

welcome welcome back, hopes today of more stimulus by the federal reserve is among the boosts for the stocks rallying today. >> another group that is seeing another strong day are the home builders and anything associated with home construction. the building permits rose to the

best level we have seen in three years. if you look at the dow jones home krurks index, just 4.1% off the 2012 high. the index is up 32% this year, and some of the components doing the best in june. take a look at those, just some of the names doing very well. a number of other names associated with home building like whirlpool also up sharply today. >> thank you, green arrows everywhere. the gloves were off in washington today, jamie dimon faced lawmakers on the hill today. mary thompson was there with highlights for us. a little more testy testimony today. >> there were testy exchanges, but a lot of them were between lawmakers arguing about things like dodd frank and procedural

issues rather than congress and mr. dimon. jpmorgan's ceo facing tougher questions pressed on why the cio risk limits were changed. he skirted those and those from barney frank asking if he would give back some of his own pay. >> the action will be reviewed by the board -- >> just answer the question. >> my compensation is 100% up to my board. >> mr. dimon you said there will be clawbacks for people responsible, is your compensation in the pot? >> he could not tell lawmakers how big the eventual loss will

be. >> could be be a trillion dollars. >> not unless the earth is hit by the moon. >> he spoke about derivatives. he says his primary concern is more for the united states because whatever is good for the united states will be good for since bank. he set the tone apologizing for the losses and to lawmakers for taking their time up on this issue. he says their time and his time would be better spent on portion issues facing this country like the ripple effect from the problems in the euro zone. that is when the bank will disclose more on it's findings about the origins for this trading loss. >> so if the earth hits the moon -- so who is asking better congressman of jamie dimon.

jane wells has that angle. >> let's play are you smarter than a congressman. would you ask better questions and get more information than our elected officials. >> you already said something false that we all know is false. zlex kuz me, let me finish -- >> is your compensation on the table for consideration? >> lobbying is a constitutional right and we have a right to hear our voice heard. >> i'm not questioning your right to lobby, i'm questioning what's in the best interest of the american public. >> is it fair to say that jpmorgan could have losses of a half a trillion dollars or a trillion dollars. >> not unless the earth is hit by the moon. >> is gambling investing? >> no. >> i agree you gamble on average you lose, the house wins. >> that's been my experience with investing. >> i'd be happy to get you a better investment advisor. >> so we wondered if here in

lala land at the beach, if people might ask dimon better questions. what would you ask him? >> how much money do jpmorgan have in credit default swaps. >> that's a good surf trip. >> when you think about the derivative of the fraction of the standpoint -- just kidding. >> what were you thinking. >> i don't think he made the choice alone. i think there are a lot of factors. >> the banks are getting so big and complicated one of the things you hear about is they're too big to manage, and can any one chief executive know enough to manage them properly? >> the last guy is a yale mba

grad hitting the surf. what is the trade? who is the counter party? are you still in it? and was the risk worth the benefit? what is proprietary trading, and frankly, i'm still waiting for corzine to explain what he did to new jersey and mf global. >> doesn't mean they're wearing wet suits doesn't mean they can't ask questioning. >> surfers are underrated. we have a market holding on to the rally, up 124, nasdaq as well, higher today. >> fedex raising prices, cutting costs, may be a loss for many, but is it a winning combination for investors? >> and then stormer senator

allen simpson in the house. he joins us in minutes. at scottrade, you won't just find us online, you'll also find us in person, with dedicated support teams at over 500 branches nationwide. so when you call or visit, you can ask for a name you know. because personal service starts with a real person. [ rodger ] at scottrade, seven dollar trades are just the start. our support teams are nearby, ready to help. it's no wonder so many investors are saying... [ all ] i'm with scottrade. mcallen, texas. in here, heavy rental equipment in the middle of nowhere, is always headed somewhere. to give it a sense of direction, at&t created a mobile asset solution to protect and track everything. so every piece of equipment knows where it is, how it's doing or where it goes next.

♪ this is the bell on the cat. [ male announcer ] it's a network of possibilities -- helping you do what you do... even better. ♪ that could adapt to changing road conditions. one that continually monitors and corrects for wheel slip. we imagined a vehicle that can increase emergency braking power when you need it most. and we imagined it looking like nothing else on the road today. then...we built it. the 2012 glk. see your authorized mercedes-benz dealer for exceptional offers through mercedes-benz financial services. the teacher that comes to mind for me is my high school math teacher, dr. gilmore. i mean he could teach. he was there for us, even if we needed him in college. you could call him, you had his phone number.

he was just focused on making sure we were gonna be successful. he would never give up on any of us. welcome back, oil prices pushing higher today. . >> wti prices higher on the session, but brent's crude still

under pressure right now. for brent crude it was a little higher than yesterday's close. we're still seeing a stalemate, but they have agreed to meet again on july 3rd. keep in mind as well, that the spread now between the brent and wti futuring is under $12 after they announced the expansion will be quicker than folks thought and get to 400,000 barrels today by the end of the year. >> thank you, we want to look at shares of fedex today. lower earlier and coming back. the transimportants overall have been strong lately. it's up 5% in just the last five trading sessions. so is it time to get in this game? we want to talk about that on

talking numbers. we have mark newton, and on the fundamental side, patty edwards the a cnbc contributor. >> i'm short-term bullish on fedex. they have a lot of short-term momentum. if you look at the weekly chart here you can see on the screen, it has been down over the last few years, just in the last few weeks and particularly today, the stock has been up 5% from low to high. you want to be long in a stock and buy dibs with targeted highs. patty, do you agree? would you be buying the stock here? >> i'm luke warm on fedex, i think if i was holding if three years there's something there. i think there are a lot of head

winds in the short run. the rates in europe are having to come down. you have asian volumes down, oil prices that have been a surcharge. oil proiss are down 20% in the last six weeks, now it is when they will have take that surcharge off. >> in this low rate environment, that's not something going away any time soon. >> lots of reasons to get into it, as we pointed out, transports up 5%. >> the sector is quite bullish. if you look at this chart of thedown jones average, this was a break down fail. it can be stronger than the break outs themselves. >> it attempted to break down, it failed, and now it's back at

it's previous high. so that's short-term bullish. i'm thinking transports get up to $5400 or so before they stall out. >> that's it for talking number. >> thanks, bill, 25 minutes before the market closes. the dow industrials up 127. the market hopes the fed will step in, but should the central bank come to wall street's rescue again. we will read your responses on the air later. and allen simpson with us saying congress better get it's act together quickly or risk fiscal chaos. his solution, next.

welcome back, we have a market flash update. >> the market sector has been beat up today, and the best of the bunch today valero. it is up 7% right now. they had a loss last quarter, but they have a upgrade based on

valuation. >> thank you, brian. we have 30 minutes left in the session. if you're just joining us, the major averages up bouncing blow session highs on hopes that they will extend stimulus measures. right now the dow is up 116 points. financials among the leaders today in today's advance. the banks index hitting a one month high. it is up itself about 2% today. >> bill, there is plenty of talk of the death crisis in spain, but could something like that happen in the u.s.? allen simpson is calling for fiscal reform before things get to that point. he co-chaired a federal commission charging the federal deficit, but their

recommendations were shut down. he joins us right now in an exclusive interview, thank you for joining us. >> before we get into this, any thoughts on the jamie dimon testimony today? >> yes -- go ahead, was there a specific question? >> what exactly happened with the simpson-bowles plan. what have you heard from the white house and regulators. >> it's a medicine they can't swallow. they put themselves at risk of no reelection, they will be

unpopular because our pages had an marvelous ir varitant becaust affects everybody in the united states. you can't tax your way out, spend your way out, grow your way out, you have to have a blend, and that's why everybody pulled up their socks and ran for blocks. it's a stink bomb in a garden party that keeps coming back. >> we know there are tax cuts and spending programs that will expire at the end of the year, the so called fiscal cliff, your pessimistic about what congress can get done between now and the end of the year, is that right? >> i'm not jovial about it, i'm just saying between election day, and be assure nothing will be done before november 6th. no one will touch or talk about social security and solvency for 75 years. no one will talk about medicare,

and between november 6th and december 31s because of the triggers, walls, and sequester. >> what would you like to see done if we were to see the two sides get together before the election knowing that's a reach. >> all we have to do is propose a plan. you don't even have to carry it out. germany proposed a plan, and nobody bothered them. other countries do a plan. you don't have to "raise taxes" so that grover nordqvist will stab you in your sleep. there is $1 trillion worth of taxes utilized by the wealthiest

in the united states. you don't raise taxes, you claw that stuff out there. you don't have to raise taxes. >> what about the spending programs? many of these programs will go away. you have defense companies being forced to layoff workers, what do you want to see done to spending? >> well, you have to get in there and cut, but you don't say i will cut waste, fraud, and abuse. nancy pelosi's aircraft, air force one, that's nothing. that won't get you 4% or 5%. you have to go into medicare, and you have to do something. it doesn't matter what you call it, it can't possibly prevail because of pre-existing conditions, obesity, new drugs, new diseases, everybody trying to get into the pot, you have to do tort reform, doctor reform, hospitals have to keep one set of books instead of two, and unless you're doing that and

don't threat go over 1% of gdp a year, and then you can do that. >> let me get your opinion on the study that says 47% of pensions sank deeper into the red. they're trying to cut benefits for future employees, is that the solution? >> the solutions are going to have to come on people and their individual areas and states and regions, they will be pushed by the markets. the markets don't care who is running the shop. they don't care who the republicans or democrats are. they care about their money. and they're going to start calling the shots, and then each state will have to figure what resources do i have. minerals? this? what do do i with tuition. and we said in our plan, let the states get creative and see how they can best do it themselves. and there will be a lot of

creative answers or a lot of bankruptcies in communities. >> a lot of people are talking about this fiscal cliff looming, and we have not seen any leadership in washington in terms of coming up with a plan, like you say, even if you can't carry out that the plan. why do you think that is? if it's that important and tet triplet, why don't we have any discussion about it? >> because if you bring it up, you'll get beaten for reelection. if you touch any of this stuff, you will be hammered, but i really believe, after watching what walker did, and i'm not talking about that issue, i'm not anti-union, i'm saying that showed you that if you got the guts to do something, people will back you up. and i think between november 6 and december 3 1st you will find the guys that can do it, but

hopefully before guys will say i'm not here to lie to you anymore and tell you we can get this done without touching precious medicare, medicaid, and national defense. >> if we see all of this stuff expiring will we have a market reaction? what are the implications? >> all i know is the money guys will take care of themselves. if the rating agencies will change our rating, that won't make any difference. it will be when the people that loan us the money say we want more money for the money because you have a dysfunctional government. >> thank you allen simpson. >> always a pleasure. >> you have his love his candor in and out of congress.

they can say whatever they feel and want, which is as it should be. the dow is up 102 points as we ahead to the close with 24 minutes left here. >> we have top strategist that will talk about how to cash in by easing by the fed. >> and rick perry may not be the biggest fan of bernanke based on what he said last summer. listen -- >> if this guy prints more money, between now and the election, i don't know what you all would do to him in iowa, but we would treat him pretty ugly down in texas. >> took some heat for that last summer too. so what does governor perry think about the possibility of extending operation twist tomorrow? his thoughts on that in a cnbc interview still to come. >> first, the dive dent. which dow component is

outperforming this year? american express, at&t, or home depot. ♪ [ female announcer ] you're the boss of your life. in charge of long weekends and longer retirements. ♪ ask your financial professional how lincoln financial can help you take charge of your future. ♪ [ male announcer ] aggressive styling. a more fuel-efficient turbocharged engine. and a completely redesigned interior. ♪ the 2012 c-class with over 2,000 refinements. it's amazing...inside and out.

see your authorized mercedes-benz dealer for exceptional offers through mercedes-benz financial services.

just just birdie the break we asked which dow component was outperforming this year, now the payoff, home depot that climbed about 25% year to date. >> that would be a plus sign i think. stocks rallying, a lot of plus signs, the nasdaq no exception. jackie d. has more. >> microsoft had a highly anticipated announcement of it's tablet yesterday. look at these stocks on the move. nvidis is one of them, intel on the gain, and also gains in netflix that's getting a boost because it's streaming app will be available on the windows 8.

>> thank you, a lot of reasons for the market to be going higher, the robust hotting numbers. hose on wall street are betting more help is coming from the fed tomorrow. stocks rallied ahead of tomorrow's ke policy statement. will things get you thinkly if the fed disappoints. joins us right now now are tim freeman, and nathan bathrack. what's your tame, bill and i have been talking about whether expectations are getting way too high now in terms of what fed may do tomorrow. are you expecting easing by the fed tomorrow in some form? >> i think the market will get disappointed in the fed, but what will the ecb do overfight. what's the french prime minister

going to say, what will grease vote on? >> you're expecting a lot, huh? >> yeah, there's so many pieces moving this market. >> what would the easing look like? a continuation of operation twist? they will not cut interest rates lower, right? >> they will buy mortgages, they will drive it down further for refinancing and keep pushing money into the risk trade. >> what's the market telling you right now. we had a good rally going into the greek elections and a reallyly coming out as well. >> the market screams when you look at the structure valuetity about the liquidity being added by the central banks and the liquidity being added in any kin of a turmoil. whether it's imf or the fed, the market clearly expects sovereigns to step in and

provide liquidity. when you look at spikes like in the neiman crisis, they ask if we can get back to that level. when the fiction was 26 or 27, i said we're going to 20 faster than 35. and it's because of the liquidity expectations that the market is expecting. >> i think we're going to see easing, the question will be when. if it comes tomorrow it will be symbolic. it's foretelling that the fed things things are worst than we think they are now. i think this time the fed wants to be ahead. when you go down a slippery slope it's hard to pull someone back up. i am getting away from -- taking some profits if you will that have been occurring in high dividend stocks. i like the far east, emerging

markets down. i think europe is going to come up a little. all of this is because of stimulus. it has nothing to do with fundamentals, don't fight the tape, don't fight a bailout and i will not fight the bailout. >> anttoinantoine, what are you? >> i think there are things sensitive to rates coming down. some will get hurt because pre payments will pick up speed, but the investment banks will have a lot of paper. a lot of fixed income refinancing that will happen. >> i was interested yesterday seeing those rails doing so well, transportation really leading things yesterday. today you have a bit on the banks, sustainable? >> sure, i think what you'll see as we see things getting beaten up in the marketplace, people will come reallocate into those sectors and start chipping away

at them as they trade off. people are less confident of being short this market which is a big reason we traded up here. we had clients, reset some substantial shorts, and right now people are just very nervous about fighting this. >> you're right. tom lee this week said to me i feel like we're almost at a capitulati capitulation. i guess you don't want to the be too short or long. not a lot of long term commitments. >> most commitment pros will use the term uninvestable. the last of intervention and what people will doing with and that stimulus impact makes it a very, very difficult market to lean in. most are leaning long asset risks here. >> gentleman, thank you for your thoughts. we'll see you later on the countdown. >> we want your take on jamie die monoalso. >> the markets may be betting on

more fed stimulus, but do you think the fed should ride to the rescue once again? we want your thoughts, get into the conversation, tweet us your thoughts at cnbc closing bell, we'll have responses later in the program. as we ahead toward the close, the dow hanging on up 113 points today. >> jamie dimon feeling more heat today than last week in the senate. >> relative to earnings -- >> that's not the question, don't filibuster. you have more fireworks on capitol hill, we'll show you what he had to deal with.

>> if you didn't see it before, we'll show you some of it now. jamie dimon back in the hot seat. they took off the kid gloves at the senate banking committee last week. here are highlights of some of the he's testy moments in the testimony. >> my compensation is 100% up to

my board. >> mr. dimon you said there will be clawbacks for people responsible, it your compensation in the pot considered for that? >> they will do wha w they see t appropriate. i can't tell my board what to do. >> you're throwing darts at a dart board and putting a lot of money at risk in case you were wrong the first time. i don't see how that creates one job in america, how it helps the american economy. >> i assure you there isn't a member of this panel that could not bring you 100 small and medium size businesses credit worthy in need of loans for you. and instead, you took the $350 million to london. >> some interesting points. but you know, jamie had some answers to that. his argument is always size is good, and the economy is too slow right now to take too much risk. the riskiest thing a bank can do

is loan money. that doesn't sound to well with a lot of people -- >> i'm struck by the fact that we're focused how much on a situation where it's jpmorgan's money, investments, and they're trading for themselves, they made a stupid trade and lost money on it. what's new about this? it's going on 24/7 across wall street and the banking sector, so i don't understand why everybody has to give their opinions there. >> it's congress in a year divided by four, but it plays into the hands of those that want to see more regulation. it doesn't matter if your you're a democratic or republican, regulations need to be down the middle, workable, and simple enough to execute. the people in the financial services industry are the ones that have to make those regulations work. >> which is my point about the

volcker rule. you have to define it, if you cannot define it you cannot write it, if you cannot write it you cannot enforce it. you can't define it, it's not happening. >> i know we sound like we're running for office or something, trust me, we're not. we'll take a break and come back with a market close. >> and the government's new credit card complaint website. somebody here says it doesn't go far enough.

all right, four minutes left in the trading session here. the dow, s&p, and the nasdaq up for first across the board june gains since 2004. holy cow. we'll talk about that in just a moment here. here is what we were watching today. a little birdie told me that this was the reason the market was watching europe more than the fed today, but the euro pretty strong today, up to

$1.26. it helped our markets. we follow the euro. the dow today was at five week highs for a time. we came off those for a gain of 98 points. as we were buying stocks we were selling treasuries. we were much higher than that earlier, but we're at 1.62%. the 30-year bond was down a full point at one time today. oil continued higher -- this is new york crude oil, but if i showed you brent crude oil, it is lower. it is pretty narrow for this historic spread up 83 cents today. and the fear indicator has been coming lower that we hit a week or so ago 25 now at 18 and change. and what was leading the way? the financials and the materials. the last on the financials led

jamie die m-- dimon was in the seat. >> what happens tomorrow when the fed says we're extending operation twist. >> i think tomorrow, i think the market would be disappointed in that. i don't think bernanke will do just that. he spent his entire career trying not to surprise markets. he knows that will be a disappointment. he will come with another package. >> what do you think he can do? >> he can buy more and he may have to buy them out further in maturity. >> anything happening overnight that we could they put a coalition government together? >> those are all things that move the market today, rumors that germany would ease up a

little bit, rumors that we would have a greek government by tomorrow, and rumors from france they may have a solution to the spanish bank. everything sowned great, and now it's late day anxiety here. >> not long that much. >> what would you be buying here? obviously risk on trades, is that where you would go? >> serve refinancing with rating at record lows around the world. so ubs certainly would be a beneficiary, and u.s. banks beaten to death. >> thank you. we'll see what happens tomorrow. we'll cross finger and toes and everything else at that point, that is the first hour of the "closing bell" with the dow up 98