>> want to be long spanish government bonds on the notion that the package is better and more unified than people expect. >> all right. that does it for us. catch options action tonight followed by money in motion. follow me on twitter. "power" begins now. thank you very much. we begin with breaking news of wall street. the market's surging like it hasn't in weeks after a little bit of hope of angela merkle, the germans in europe, the bulls say danke schen. the dow up 220 at 12,822. just a little bit of a pitch away from 13,000. the s&p 500, up nearly 2% and the nasdaq higher than by better than 2%, at 2921.04. more on the whys. but first to sue and the guys on the floor of the new york stock exchange. >> i know. i'm a lucky girl today, ty, indeed. let's get right to it. jeff gillberg, art casion joins

us. welcome, gentlemen. art, big rally. a lot of hopeful news out of europe. the question is whether or not you buy this rally at this point. will it last? or is this just a few fireworks before the fourth of july next week? >> well, i think it's living on the fact of no negative comments out of germany so far. it's been a heck of a move from the low yesterday to where we are right now. it's about 400 points in the dow in less than 24 hours so i think i'm going to wait until monday morning and see what the mood is in europe. it might last couple a couple of weeks. we did this last october. we whatted one of these. i'll wait until monday. >> the skeptic says, steve, this is a sucker's rally. the retail investor is pulled in to this and then all the institutional investors and the guys with the faster money get out. what's your read on it?

>> i think the 1349 test this morning on the support side was significant. it held. i think the other moving parts in the marketplace is more significant today and the lack of a selloff in u.s. treasuries longer dated is more significant than seeing in stocks today. >> would you agree, jeff? >> i would. the bond market is providing leadership from the get-go here and the 10-year yield, if we see a cloz above, you'll see continued bond selling because the price is clearly inverse related to the yield and then got that selling. you will see that boost in the equity market continue, sue. >> you know, art, what about that move in interest rates? i mean, a lot of people hiding their money in treasuries for security reasons, of course, and everybody's been waiting for the catalyst that will burst that bond bubble. could this be it? >> it's possible but i think what you're seeing is a little bit of a reaction. if germany's going to have to pay up, that bund will have to

pay up, too. so they move. in relation, it's been a flight to safety so i think it's a stroll away from safety and we'll see and stocks it feels like it's up the limit. you know? we have vaulted in to 1353, 1357 resistance and we are just hanging out. >> what about the data, steve? we are going to talk about this later, certainly. but does the data we are seeing here in the united states support the kind of move that we are seeing here in the stock market on a more sustainable basis? >> well, i'll tell you that on -- i'll give you a better answer after monday's ism and friday's job numbers. >> that's cheating. >> based on what i have i like the way the housing data started to turn. we have seen four beats on consensus for housing in a row and consumer confidence isn't quite there. we are starting to see something we haven't seen in a long time. relative to a couple of years ago, not so good. throw out 15 years because that's not normal. >> very true. >> we have a new normal and

according to the new normal housing is starting to improve. >> on that note, thank you very much, gentlemen. >> on this final day of the first half of the year, all three of the major indices are in positive territory. the dow is up 4.8% year to date. the s&p is 7.6%. and the nasdaq up a whopping 11.9%. gold up 1.8%. oil is down 16, almost 17% coming to the end of the first half of the year. very interesting statistics, ty. >> all right. of course, most of the gains in the first quarter of the year. not the second quarter. one of the big reasons for today's jump is optimism from euro crisis land and our international correspondent michelle caruso-cabrera is here. what did the europes do and why are they taking cheer of it? >> they'll have a european-wide banking authority for confidence across the union.

>> like the fdic? >> exactly. think of it that way. two things to help out the spanish and italians. allow the big rescue fund they have to directly buy bonds, try to bring the interest rates down trying to re-finance a lot of debt. >> the rates starting to come down in anticipation. >> absolutely. show you in that in a second. direct rexcapitalization and that's to help spain. looking at the last 24 hours in yields, art talking about the huge move in the dow, look at the huge move we saw in the yields with both spain and italy and also germany. take a look. falling for spain, very big move. also for italy. we are talking about 6.35%. >> wow. >> approaching 7%. ita italy's down to 5.8% and almost at 6.4%. >> more than a--point move there in the spanish debt. >> huge, huge. there's germany. why? higher yields today.

the interest rates are rising. expected to pick up more responsibility, more risk. >> speaking of germany, and its chancellor angela merkle, widely seen as a bit of a come up pans for her. when's the consequences? >> go home and sell it to the german people, to constituency to get re-elected or so she hopes. the sense is that mario monty arrived and said we need help to lower the interest raits because the debt costs are rising too fast. she did a couple of things that she said she never wanted to do, including the sm to buy debt. so, it's perceived as a loss. she will have to go back and convince them she has gotten enough other things to justify the move. >> good day for italy on the soccer pitch and the summit. i have a feeling it's continuing this story. >> you see?

>> we'll see you next week. let geese to brian shactman. >> you know the things of a rising tide lifting all boats and looking for maybe some specific boated lifted higher for this reasons we're discussing. take a look at coca-cola enterprises. the biggest coke bottler in western europe. waiting for stabilization and got it today. huge interest in belgium and france. near the highs of the day, sue. back to you. >> brian, there were two key pieces of data, neither of them particularly great and neither of them having a big impact on stocks today, either. first up, consumer sentiment hitting a 6-month low. if the declines keep coming it could start hitting consumer sales then ten the chicago purchaser's management index. activity picked up in june but just slightly. the american businesses are facing headwinds and faces the

threaten. shares of kb homes on the move. narrowing the quarterly losses. numbers released this morning have the stock up 14%. kb said net orders increased by 3% or 1,290 homes last quarter. shares up 38% year to date. ty? all right. thanks very much f. you're a good financial planner you have a living will and now banks are getting them, too. kayla? >> in the case of the banks, the living wills will be thousands of pages and due to the federal reserve and the fdic on monday. the purpose for a road map for regulators to navigate the banks' assets and liabilities. if banks are in a lehman-like situation, one, of course, we remember too well, the fdic said if they existed for lehman they would have sold assets in august once it's clear there's no buyer for the entire company.

they'll have a contingency plan and the public will see portions of the planls when they're released next week. the most interesting things that i'm watching for is new whales in the banks' derivatives. >> london whales? >> exactly. what capital structure of each bank means for bond investors in a bankruptcy and what banks view as their own noncore assets, the first to go when the going gets tough and this disclosure could scare some managers about the viability of the units they run at the banks but we asked former fdic chairman bill isaac. they won't be based on realtime info but updated each year but banks aren't legally bound but they would save the hefty fees that trustees charge liquidating a -- >> the work is done ahead of time? >> exactly.

>> thanks very much. sue? peter madoff was picked up by the fbi this morning with a first court appointment at 11:00 a.m. mary thompson has the next step for him. mary? >> reporter: looking over my left shoulder, we are waiting on mr. madoff to exit the building along with his lawyers. earlier this morning, he pled guilty to two charges linked to his brother's ponzi scheme, as expected. in a statement to the court, the 66-year-old peter madoff said during his 40 years working for his older brother never had any idea he was operating this kind of investment fraud, telling the court about the brother, i revered and trusted him implicitly. i thought he was a brilliant trader and adding many on wall street thought the same thing and peter madoff said he was guilty of certain actions allowing his brother to set up a legitimate cover to operate this ponzi scheme, general counsel and chief compliance officer at

the firm he failed to go over paper work bernie madoff filed with false information and allowed him to set up the false or an investment advisory firm and conducted the ponzi scheme and peter madoff said he reported certain transactions loans as tax free and said he took perks and gifts and never reported them to the irs, he put his wife on the payroll even though he didn't have a job. at the end of the statement, he was somewhat teary saying he was ashamed of his actions. sentencing will take place on october 4th of this year. he's expected to be sentenced to ten years in prison. that was part of the deal that was struck with him. also, he is free on $5 million of bond. he and his wife travel is restricted to the eastern and southern districts of new york. both of them have given up their passports. tyler, back to you. >> mary thompson reporting, thank you very much. some breaking bad news now for fans of amc.

dish network is threatening to drop the cable network from the lineup and do it this weekend. the third largest pay tv provider in the u.s. says the cable network wants to charge too much money per subscriber. they already dropped amc's sibling channel sundance and that's the "mad men" cast ringing the bell earlier this year in new york. amc says dish is dropping the channels as part of a bigger dispute with the company and a separate lawsuit. at&t is also threatening to drop the amc networks this weekend. shares of dish down 3% over 3 months. sue? when we come back, we'll take you to the fire line. hundreds of homes in colorado up in smoke. the president on the way to the area as we speak. we'll give you the latest on that story when we come back. on the stock front, we are talking nike. investors knotted up with worry today.

the stocks getting slammed. down 7% due to the company's exposure to a weakening chinese economy. who might be at risk? tonight's finance poll. what do you think about the second half of the year? see where the world stands coming up. ur fight against bugs. ortho home defense max. with a new continuous spray wand. and a fast acting formula. so you can kill bugs inside, and keep bugs out. guaranteed. ortho home defense max. so you can kill bugs inside, and keep bugs out. guaranteed. this is new york state. we built the first railway, the first trade route to the west, the greatest empires. then, some said, we lost our edge. well today, there's a new new york state. one that's working to attract businesses and create jobs. a place where innovation meets determination... and businesses lead the world. the new new york works for business. find out how it can work for yours at thenewny.com.

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welcome back. brian shactman here at the markets desk. trying to find the under and outperformers in this rally.

monster beverage. mnst. it's up 4.25%. put it in perspective. look at a one-week chart. ubs said buy the dips. down almost 16% going back 10 days. they're growing great. as you should know, sue, these drinks are bought in convenience stores and they're outpacing most of the competition except for red bull with convenience store purchases. >> they have pared the losses. there's deal of toyota and trumped with the japanese automaker. phil lebeau is live in chicago with a big blow for toyota and lexus, phil. >> reporter: it is. they're going to say didn't we have this issue three years ago? it's floor mats and potential pedal entrapment. here's the recall coming from toyota for 154,000 models, lexus

2010, rx 350 and 450h. the federal government says there is the potential for floor mats and pedal entrapment. this was at the heart of the massive recalls back in late 2009. federal government says they saw an increase in the floor mat complaints of models in particular last month that led to the recall today. look at shares of toyota. after the news broke, there was a bit of a dip. not a huge selloff. the shares up more than 2.5% today. some might be optimism of investors of toyota with the portfolio around the world, it is in pretty good shape even with the problems of the yen in japan. today the ceo of toyota was in munich, germany, announcing that toyota and bmw are teaming up in the development of electric cars, fuel cells, sports car. tapping the expertise of toyota with electric cars, bmw with race cars and sharing that

expertise and auto technology and shares of bmw, like toyota, enjoying a pop today. on a day when you would expect shares to sell off on that news a little bit, no movement at all. >> what about the american carmakers? with the deal in europe, giving a lift to certain parts of the market but not the american automakers apparently. why? >> everybody wonders how bad will it get in europe. look at ford. down over 4%. they come out yesterday and say our losses overseas are tripling. from the first quarter to the second quarter, sue. and if it's happening then, what's going to happen in the third quarter? is there a bottom in sight? when do they have to say we're closing a plant in they have not made that commitment yet. >> down 28% year to date? is that correct? >> reporter: in the last year, down 28%. >> wow. >> reporter: they have come back a little bit today.

at one point down more than 4%. >> thank you, phil, very much. let's turn to jeff kilberg now and see how he thinks the best ways are to play the sector. >> ty, if you remember on tuesday we talked about actually fading ford as the new sales companies specifically domestically will have some problems. i like tata. the headquarters in india, growing in that space. ttm, ty. back to you. >> tata motors up about 13 cents today. now to the finance yahoo! poll question of the day. how do you think stocks will perform in the second half of the year beginning monday? survey says, 44% of you said stocks are going to rise. 26% said they're going to fall. and 30% of you say they're going to be flat. sue? ty, parts of colorado as you know have been declared a federal disaster area as intense wildfires keep burning. the fire destroyed 350 homes so

far. this is now the worst fire season in colorado's history. the president is set to arrive in the fire zone within the hour and see that damage firsthand. miguel amalgeur is on the ground for us. miguel? >> reporter: good afternoon. the president declared this fire a disaster, it will free up federal funds to help the crews fighting the blaze. the damage is already in the millions. it's charred more than 18,000 acres. as you mentioned, roughly 450 homes destroyed. this fire only 15% contained, which is to say 85% of the fire is unchecked, still making runs through forest and so today at least 20,000 homes are technically threatened by the fire. this is also causing a huge financial blow to the state. last year here in colorado, more than 60 million tourists, many for the biking, rafting and

cycling. outdoor amenities that the state has to offer and because of so much fire and so much smoke there's been some concern that the tourism numbers drop, the industry helped bring in more than a billion dollars here last year and concern today there's not a rebound. coming up on the fourth of july seeing so many people flood the state. >> all right. miguel, thank you very much. hopefully they get a change in the weather to help them out, as well. a lot more ahead. we're watching this market which now has the dow and the s&p at new highs for the trading session. when we continue, we're going to look at this final trading day of the first half of 2012. some of the gainers but also some of the losers. nike is tripping up. the stock may be up 50% in 5 years but down 10% alone today. analysts downgrading it due to a slowdown in china. we'll talk about that coming up next. plus, we are analyzing the

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now "analyze this." jeff kilberg is back with us. look at bb&t. that would be a bed, bath and beyond and upholding from new to buy. shares in the low 60s. new price target they say is 75 bucks a share. do you buy bed, bath & beyond. >> i agree. just like frank the tank from old school, i'm hoping to go there tomorrow back in chicago. but seriously, we did see them acquire cost plus. get above the 200-day moving average by a dollar or two and have momentum to continue to go higher. >> jim cramer had interesting comments on wednesday evening i believe. here's the quote from the note. in our view, sks is a multi-year investment with 25% plus annual eps growth through 2015. shares of saks, where do they

stand? up 22 cents at $10.60. you buy it? >> i think so. another technical situation here, ty. saks above the 50-day and 200-day moving average. i like nordstrom better than saks in my mind. >> nike here. it's got to be the shoes. in this case, got to be china. baird equity saying nike is hitting a self-proclaimed speed bump in china. the shares of nike, look at that, down seven bucks at 89.57. flat over the 1 year and down 7.5% today. what do you think on nike? >> i disagree. it's in the hurt locker here but it's a household name and really tied to sentiment in china. i don't think it's as hard of a landing and therefore a great valuation. pete, the guys on "fast" like it down here, as well.

you have to step out and buy it. doesn't feel that great. >> all right. so let's talk about nike. if nike's in trouble in china, are there others who might be? >> if you're averse to dabble in this, under armour or crocs. >> all right. thanks very much, jeff. see you later. metals market about to close shop for the week and we'll show you where we stand hitting the floor coming back. but before the break, a look at the indexes on a bullish day in the close of the quarter and a long, hot weekend. the dow, s&p, nasdaq, highs of the day. gold is higher, as well. look at west texas crude. something kilberg talked about earlier. up 8%.

it's not just stock prices moving higher. gold prices having a significant gain today. sharon epperson is tracking the rally. >> it's biggest rally of many commodities and metals and gold prices on a tear today, up over

50 bucks settling here above $1,600 an ounce. keep in mind, of course, a lot of reaction to the deal in the eu and the fact that we're also seeing the end of the quarter and a pretty bad quarter, actually, for many commodities, as well. might be position squaring, as well, going on here. we are looking at silver up 5%. copper up over 5%. palladium and platinum up, as well. gold is set to be down significantly in the quarter. we have also seen a bit of a loss here in the holdings in the gld. it is down slightly, down about .5 or so after having gained 32 tons over the previous 3 months and looking at what we have seen of liquidation in the gold market, sue, but right now there is a rally on and depends on china news over the weekend. traders say whether the rally is

maintained. back to you. >> thanks so much. now to brian shactman. >> every single major s&p sector to the upside. con ed is weakeren that the overall sector, basically we have a heat wave in the northeast and 8,500 con ed workers in new york area might go on strike. not good. the stock is down in an up market. >> not good news at all. thank you very much. the breaking news is the markets soaring with the dow just high of a new high and the tranports confirming that move. courtney reagan is here with us. >> hi, sue. what a rally today. 226 points to the upside and positively surprising in the market we didn't expect much and got more than we bargained for and pushed equities higher nearly across the board. you look at the sectors and it is a risk-on rally. that surge of contracts that

sharon was talking about at the nymex pushing up a number of other commodity-related names, for example. housing in focus today and number of positive markers this week for the group. the itv hitting a new three and a half-year high and housing reports better than expected. lennar's orders and earnings better than expected i believe and then kb home reporting earnings better than expected beating the top and bottom line and narrower second quarter loss as the orders soared. constellation brands beating the street. and also announcing it will acquire the remaining 50% stake that it doesn't already own from anheuser busch of $1.58 billion. shares at five-year highs. it is 5:00 somewhere. sue, back to you. >> indeed it is. cheers. thank you very much. that is a very bullish

scenario and many analysts say the second half could be tough for one particular part of the market. the banks. due in part to a sharp drop in deal. goldman sachs plans to slash several hundred jobs to cut the costs. how bad for the financials? joining us is neil weinberg at american banker. good to see you again, neil. >> my pleasure. >> we know that the deal making has been drying up lately but some people say that has to do with the credit markets versus the overall environment in the banks. >> i don't know. you need animal spirits, ceos to take risks and hard to believe with europe, with the crisis going on the deal overnight, forget about that for a moment, that crisis, asia slowing down and the united states limping along, hard to believe the a&m market is going to be strong. i'm talking about it for weeks and not seeing the activity out there. >> the animal spirit may be one

part of it. what about the ability to float debt for a deal? how does that look in the second half? >> well, there's, you know, cash out there. there's certainly liquidity. do people want to take risks? that's a big question you will have. i don't think the financing is really the major impediment here. >> how do you feel about the banks in the second half? we have had trading issues with jp morgan chase. now the libor issues with barclays and other big banks. it seems as though there's major headwinds and headline risks for the issues. >> i agree. the headline risk is huge because, of course, there's regulatory things in the pipeli pipeline. in addition as you're suggesting, the market is weak and commercial banking with the interest rates, margins are bad and the profits that banks have been able to grow over the last few quarters from lower provisions against bad debt and

can't go on forever. >> thank you, neil. have a good weekend. see you next week sometime i'm sure. over to you, ty. rick santelli is all over it from the cme group. rick? >> well, thank you, tyler. you know, obviously, it is the end of the quarter and also a friday. both very big events for trade earls. so let's look at the two markets i'm paying attention to. look at a one-week chart, it is a nick on the week. last week 1.67. let's call it a draw. but boy, open that chart up to the laft day of march and it was huge quarter for rate drops. we were at 2.21 last day of march. currently at 1.65. we are talking 56 basis points. that's humongous and the lowest closing yield on record or any records and considered ancient times and 145. the dollar index, well, today

it's sunk. on the week down two thirds of a cent and open up that chart, we are up on the dollar index and many look at this chart and say looks a bit toppy. it's totally a statement of what you think is going on in europe. ty, back to you. >> rick, thanks very much. despite europe's new deal today, the euro zone is a concern for businesses with big international exposure. our chief international correspondent michelle caruso-cabrera joins us with a special guest. >> thank you so much. leaders watching europe. joining us now is a business leader, ricardo salinas, second richest man in mexico. and he joins us now from as a attending the aspen ideas festival. good so see you again. >> how are you doing, michelle? >> great to have you here. we are talking about europe so much today. you have seen a lot of debt

crises up close suffering from so many. how are you looking at the situation in europe? how do you game it out? do you have advice for them? >> i mean, well, obviously, we got to thank the germans for the rally today and i think that the bailout is the only way out, frankly. they're in a big debt trap. and they need to have some liquidity. so this is the right move. >> at this point. okay. turning it back now to your part of the world, mexico. the election is on sunday. for the new president. what do you think after that? the drug war, is that a good idea? are they finally going to allow private investment in the mexican oil company? >> well, the election is up and there's a 10-point difference between the front-runner and the second place. so it's pretty much a done deal

that pri will be back in power. now, what does that mean in terms of the drug war? i hope it means change. we have 50,000 dead people in 5 years. you know? this is a very serious situation in our country and this is one of the reasons why the ruling party is being ushered out. >> so you think the drug war should stop? >> we have to think about that. well, i think we should apply the policies that america has. you know? >> i don't know. you smile like that and what does that mean? >> well, there's plenty of drugs going on here in america and there's lots of money and guns going back to my country but doesn't seem to be this violent killing going on, so i think we should look to the kind of policy that is lead to that kind of outcome. you know? as opposed to the policies we have today that lead to the outcome of 50,000 dead people. >> i guess i still don't understand what you mean. when it comes to what the new mexican president should do, what do you think he should do?

>> he should crack down on violent crime and basically let the distribution drugs flow to where they're needed in this big market in america. that sounds very bad but that is the reality of drug trade today. as long as it's a huge demand in the states exists, it will be supplied. from mexico or another country. >> interesting. okay. let's move on to another topic that we talk a lot about with you. you run the biggest electronics chain in mexico. in the past, you have tried to buy circuit city out of bankruptcy. there's opportunity in best buy right now. have you looked at that in any way or shape? >> not really. i think best buy has some problems of their own and frankly we are expanding much more in the financial services sector and that's doing really well for us. we're up to now 25 million customers in our bank for the bottom of the pyramid and that's what's really driving our groelt

and really excited about that. >> thank you so much, mr. salinas, for joining us from aspen. and tyler and sue, talking about the bottom of the pyramid, ri ka do salina specializes in giving credit to low-income individuals in latin america that struggle to get credit. >> absolutely. just how much wealth the iphone created for investors and executives. that's coming up. but first, check out the markets. the rally is broad and roaring today. up 226 points on the dow. the s&p up 26 points, better than 2%. and the nasdaq up almost 3% on the trading day. if you made a list of countries from around the world... ...with the best math scores. ...the united states would be on that list.

in 25th place. let's raise academic standards across the nation. let's get back to the head of the class. let's solve this.

this is new york state. we built the first railway, the first trade route to the west, the greatest empires. then, some said, we lost our edge. well today, there's a new new york state. one that's working to attract businesses and create jobs. a place where innovation meets determination... and businesses lead the world. the new new york works for business. find out how it can work for yours at thenewny.com. welcome welcome back. brian shactman here. take a look at zillow.

doing well today. expanding the headquarters and they're actively hiring. if you need a job, check out the website for the openings. they reported last month, more than doubled in the sales. things going quite well and as i say tossing it to mandy they need to value my house a little bit higher. >> me, too. okay. coming up, top of the hour, we are closing the books on the second quarter. good riddance we say. stocks are rocking in june. so we turn the hopium spigot on full blast. stocks that may have more room to run. the housing recovery's rising from the ashes of the real estate crash. we'll sell that hopium. >> we'll see you at 2:00. thank you. the nasdaq on a percentage basis is doing better than the dow today. jackie is checking out the

winners in midtown for us. hi, jackie. >> hi, sue. we continue to climb higher here at the nasdaq. take a look at the large cap tech names at or near session highs. all doing quite well today. apple, the fifth anniversary of the iphone with a price target rise of pacific crest to $690 a share. look at the leaders. all doing well. vertex rebounding after a question of results of a mid stage study of the cystic fibrosis drug yesterday. so this stock popping. i don't want to end on a down note but we have to look at rim. missed on the earnings and revenue. 5,000 layoffs and also pushing that blackberry 10 out to next year. tyler? >> oh my goodness. poor rim. thank you very much.

happy birthday dear iphone. happy birthday to you. it's general ratded $150 billion in revenue. it's created ed 20,000 of the employees and stats gurus say more iphones are now created than babies born worldwide. and they cost less. the stats are great but check out the stock. up 371%. 375, page. over the last 5 years. there aren't a lot of public companies to say that, obviously. jon fortt is live in san jose. jon? >> reporter: tyler, in some ways it's easy to believe it's been five whole years. >> i think this is where the world's going. >> reporter: we remember steve jobs holding up the first iphone saying it was the future. while rim and nokia laughed. they're not laughing anymore. rim's market cap down about 90%

of 5 years ago. nokia's down more and iphone forced business people to readjust their thinking. there's attempt to gain loyal customers. surface tablet is an acknowledgment that the combination is too effective to beat with the licensing rule book and google's next xi 7 shows they're adopting more of the apple model, too, designing hardware and software and would google have bought motorola mobility if they didn't need the talent? i think we all know the answer to that. five years ago there were no mainstream touch screen gadgets. if we were a society of mice. the come putding is one company can't make operating systems and hardware and single digit market share. iphone changed that and now

pondering the future. the biggest product of apple by far selling more than 35 million units last quarter alone. as you can see, its launches have gotten bigger and bigger but the ipad that's apple's fastest growing product now. sales up 132% year over year in the march quarter. if apple keeps growing at the pace of the iphone, the ipad will have to have to take the baton. sue? >> we'll see if it does that. thank you, jon. >> the dow hit a new high and jim rogers speaking out to cnbc about how the eu's deal will make problems worse. he says, quote, how many times has this happened in the last three years? eu leaders have had a meeting, the markets have rallied and then the market says, wait a minute, this doesn't solve the problem. end quote. should you trust the rally? joining me again on the floor is art cashin. that's the fundamental question, art, but it does seem a little

different this time. seems that germany softened the stance. >> that's the remarkable thing of what we have seen. many of us expected not so much to hear merkle come back with second thoughts but many of the people her, finance ministers, people of that ilk and there's been basically very little comment and that i think given people a sense of enthusiasm and created a lot of trouble for the huge amount of shorts in the euro. >> right. >> that's really when's driving this whole thing. gold, stocks and everything else. >> that's one of the most crowded trades, those that were short the euro for so very long. everybody thought it had to go down. they were at an impasse. not making any progress. that dynamic and the currency market seemed to have changed considerably. >> certainly did. it was a near-record amount of shorts. the reports from the commodity trading futures commission showed that the positions got

bigger and bigger and stayed there. people really got caught off base here and we have the see if there's a new follow-up next week. from what i hear, people extending around july 4th. some two days before off giving them five days, some are taking the two days after giving them five days. >> we have data next week that's very important. >> the friday data will be very, very important. and by the looks of the initial claims and other things, pmi data, better than 35% chance that nonfarm payrolls are 70,000 or lower. that could hurt. >> and it could be a thin market because of that holiday in the middle of the week. >> all right. >> absolutely. >> have a great weekend. >> thank you. you, too. >> thank you for joining us. up next as we continue, much more on what's shaping up to be a huge day for the markets. some of the biggest gainers on the day, amber congressman by & fitch up almost 10%.

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and the bulls are roaring. right now, the dow as you see up 1.83% or 231 points. the s&p 500 up better than 2% or 27 points. the big index leader is nasdaq composite up at 2923. among the dow stocks, the biggest gainer on the day is utx, united technologies. bank of america the second biggest and we'll return. you can call them anytime you feel like saving money. it don't matter, day or night. use your computer, your smartphone, your tablet, whatever. the point is, you have options. oh, how convenient. hey. crab cakes, what are you looking at? geico. fifteen minutes could save you fifteen percent or more on car insurance. that's a good thing,

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brian shactman here. emerging markets underperformed globally in the second quarter of 2012. not so today. take a look at two emerging markets etfs with the best day since last november. we have the charts? i don't know if we have them. eem and vwo up more than 3.5%. trust me, sue. trust me. >> i do. i trust you. there they are. good things come to those who wait. look at the biggest dow gainers with the dow up about 231 points on the trading session. utx is topping the list up

better than 4% and followed closely by bank of america, ge, all of them with significant percentage gains so the rally is broad. if you're a dow theorist, the transport is an important aspect of this. neil is back with me. i'm hearing that the underpinnings to this rally coming from the idea that this secures the europe -- this tentative deal secures or makes more secure the european banking system, specifically italy and spain. do you agree with that? >> i think it does. we have gotten out of the deal and bringing in pan european money, aka german money. >> right. >> so it breaks that cycle and certainly hope that now we will see that global markets are reflecting that think think there's something there. >> you think it will bring down the borrowing costs? >> yes.

>>ty? >> you mentioned on wednesday uso, the oil etf. >> correct. >> if you bought it then, how much richer would you be today? >> substantially. 7% pop just today. on the 29.50 level. seeing a nice move today as oil is catching shorts on the run. >> look at that. if you had done that on wednesday, this morning! you would have been almost 7% richer today. oil moving up a bit there on this very big day for the markets. jeff, it's been great having you with us. you 'll come back, won't you? >> absolutely. >> sue, any final thoughts of you? >> i think it is interesting to see whether or not in a week that's thinly traded next week with data and a holiday whether or not the bulls can keep up the momentum. that's a test for those who say that this rally is secure and it is for real. for the retail investor, i'd hedge your bets a little bit. >> rogers making the point we have been down the path before with lots of stuff coming out of