some of the guests and interviews will be here on cnbc and i can assure you folks, we will be delivering what --? >> alpha. >> that's right. >> thanks for watching "street signs" see you tomorrow, guys. hi, everybody, good afternoon welcome to "closing bell" i'm maria bartiromo, stocks staging a big comeback in the midst of ben bernanke's testimony in capitol hill. >> stocks initially took a hit in early trading but after bernanke started to talk negatively, investors took that that the fed may act sooner than later. the dow and s&p 500 set to close higher for only the second time in nine trading days. take a look at where we stand. we're almost looking at the

triple gij it gain. we were right now falling back slightly. plus 92 for the dow. the nasdaq is a gainer by 18 points, waiting for intel's big earnings after the bell. there's the s&p 500 with a gain of about 3/4 of 1%. senator chuck schumer one of the headliners in the hearing earlier today in washington, he told the fed chairman, congress will not fix the fiscal cliff and the fed needs to get to work. is this what it's come to? a market and country dependent on the federal reserve to fix and try to do the solutions? that's the only place for solutions? >> with us now, naj an backrack of the financial group and chris constantineos and rick san telly. nathan, you say the fed isn't the answer and i'm not sure you're going to get any argument here. the exchange between schumer and

bernanke. >> imagine if you worked for an employer and said, we can't work together, me and my peers so you figure it out, boss. it's crazy. the federal reserve will do what the fed has got to do. they are going to work off of data and the fiscal cliff, it's just a bunch of drama. there is no way in the world we're going to get there because that fiscal cliff is 2.5 to 3% of gdp and nobody wants to have responsible for having that blood on their hands. the data -- i'm sorry. >> no, please, go ahead, finish. >> when you looked at what he said, he said europe is a problem and cliff is a problem and so we're not so bad and on that everybody said good maybe we'll get more stimulus and the market takes off. >> after all of the federal reserve has done, steve, bernanke was asked how many bullets left in the fed's chamber? he seems to suggest they are looking at more tools, even

though rates are at rock bottom levels. can the fed do more or should we start looking for fiscal policy? >> i'm sorry those aren't mutually exclusive questions, right, yes we should be looking for more fiscal policy. and the idea that schumer said that the fed should bail out congress is unconscionable. i can't believe he's actually saying that. and i think the previous guest was exactly right. there is nothing the fed can do to offset the 2.5 to 3% gdp that could come. i've heard numbers around 4% of gdp as well. but yes, there is more the fed could do. i believe it set the margin, it depends on how bold it wants to be. if you want to talk about a $500 billion qe program, perhaps could give you 10 or 20 basis points at the margin, they said they expect to remain low to 2014. they could bump that into 2015. there are some people that say that promise could be worth 25

or 30 basis points, particularly on the shortened, five-year money and shorter than that. and then getting rid of interest rates on excess reserves or bringing it down to zero would have a hit to money markets but it could also perhaps motivate some banks to put some money in the economy. none of it will return growth but it could add a few basis points of positive here and there. bernanke is conscious of the cost as well to the policies. >> no doubt. rick, size up how the bond market reacted to all of this. don't forget about the dollar either. the dollar had a wild ride and you saw a big spike early in bernanke's commentary. >> the big spike is the decoder rings weren't passed out because the initial reaction, stocks downs, interest rates in tight range and of course the dollar index when you don't have more accommodation, that's a bullish

sign. all of that reversed as the day progressed because steve and those out there didn't interpret what they thought it meant regarding the outlook of the fed and economy. >> are you saying i'm at fault, rick? >> i'm say -- let me finish my schumer. a little bit. i think with schumer it's even worse. we understand he wants his cake and eat it too. he wants to hold the party line but as senator of new york, who benefits most from qe? well i would think that the new york stock exchange, equity traders and all of the firm and buybacks. i think it's even worse than it appears. >> you big cynic, you. >> what's the trade here chris? let's talk about allocating capital. dow industrials up 80 points. you don't have too many trends in terms of where the money is moving today. would you be buying into this rally or selling into it? >> well, maria, in the very shorlt term i expect this

quarter's earnings not to be a positive catalyst like in the past -- >> negative? >> a little negative but i think that's just for the very short term. there's a rally and the year end could be a real possibility if you look how election years have shaped up in the past. when i look at longer term trends out of the 10 s&p 500 sectors only four have made -- have eclipsed their 2007 highs. that's very significant and predominantly that's tech, health care, discretionary and parts of staples. of those four i like tech and health care here, particularly the tech companies who have very large percentages of revenue coming from recurring revenue versus going out and making new license sales. >> from a technology standpoint you have to worried about the companies getting a large revenue from overseas. we're going to hear from intel and then stacy smith will speak to maria shortly after that. you have to be worried about

that, don't you? >> let me be clear. there's a real bi furindication, i'm quite negative on those as a matter of fact. i'm talking about the computer associates, microsofts of the world. these companies get 50% plus as a percentage of their revenue from recurring sales and these -- not only that but they also have a strong and growing dividend yields and trade a big discount to the market. that end of tech is what i'll bullish on. >> in terms of earnings estimates, here we the beginning of the second recording season, do you think they are coming down further? chris? >> i generally think that q2 earnings aren't going to be the issue. it's the guidance and i could see them going lower here. we've seen them come down significantly in the u.s.

i sense particularly in the cycle cal sectors you'll have more room to come down but i think the s&p is likely on track for decent 2012 earnings. >> we appreciate your time. thank you very much. scott, all eyes may have been on the federal reserve today and that possibility of further stimulus, but there is a lot of earnings news driving the market. let's get to the earnings stories over to you. >> a quick check on the markets, upbeat earnings coupled with hopes of qe3 helped hold on to gains, s&p holding on to a gain of nine points and nasdaq up 9 points. a whole host of company, coke cola strong sales in its emerging markets division, particularly in india, the stock up 2%. toy maker mattel soaring, jumping 20%.

that's why the stock is up almost 11%. take a look at financials, go goldman sakz, up and lastly johnson & johnson also reported earnings today, looks like you focus in on the stock second quarter sales. cutting the 2012 profit forecast impacting the weakness in the euro. on the conference call the new ceo said j and j is committed to dealing with the recall issues that have hurt investor confidence in the past. the stock up about a%. sticking with health care, about three weeks ago we watched shares improve with the first anti-obesity drug to be approved in 13 years now it turns to vivus, which we'll hear on whether the fda will approve its own weight loss drug.

let's focus in on the stock, down 3% on the day but up 190% just this year. so it does appear that an approval is bake d into the stock shares. trading lower scott as you know. sometimes ahead of a ruling we do see volatility in the stock. >> brian, back over to you -- are you doing the market flash? >> we're going to brian right now. thank you seema. >> what do you have on facebook? >> take a look at the two-day, it started -- it was above $30 a share, got thumped into about lunchtime here today. you see a bit, the two-day coming back to the flat line but the volatility in the stock from 30 to 27 and change was the low on the day. so it is still not a trade for the faint of heart. back to you. >> that's for sure. brian thanks so much. 50 minutes to go before we close up the day on wall street. dow industrial looking for a

gain of 80 points. you don't want to miss what we have for you on the closing bell. >> if you've been successful, you didn't get there on your own. somebody invested in roads and bridges. if you got a business, you didn't build that. >> the head of a leading small business association is slamming president obama for those comments. find out why he says small businesses are an economic and job creating power house in spite of the government. plus, feeling the fiscal cliff. what will happen to corporate america and your investments if congress doesn't act to avoid massive tax hikes? the ceo of southern company and honeywell weigh in. [ female announcer ] the next generation of investing technology is now within your grasp with the e-trade 360 investing dashboard. e-trade 360 is the world's first investing homepage that shows you where all your investments are

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welcome back, stocks in comeback mode after ben bernanke's testimony today job joins us with the action.

>> qe3 or not, it shot up at 10:00 because a lot of traders said mr. bernanke gave to clear indication. when they got into the q and a it got clearer that he was worried and they believe some type of qe3 is coming, maybe not july but certainly in september. you can see the dollar shooting up and moving to the down side. financial stocks moved up and the lower dollar helped basic material stocks as well as industrials and most of the financials up, goldman had decent earnings report. day after day, one thing is very clear in the stock market, whether you've got pharmaceutical, telecome, utilities, it doesn't matter, if it has a yield, investors are interested in it. that's happening again today. >> here is a quote, his unfortunate remarks over the weekend show an utter lack of understanding and appreciation for the people who take a huge personal risk and work endless hours to start a business and

create jobs. that scathing statement today from the national federation of independent business or nfib, about these comments from president obama. listen to this. >> i'm always struck by people who think, it must be because i was so smart, there are a lot of smart people out there. it must be because i worked harder than everybody else. let me tell you something, there are a whole bunch of hard working people out there. somebody helped to create this unbelievable american system that we have that allowed you to thrive. somebody invested in roads and bridges. if you've got a business, you didn't build that. >> well the president joins us right now. mr. danner, good to have you on the program. >> thanks good to be here. >> let's get your take on these comments. >> i think it's a clap in the face of every entrepreneur who had a dream and risked everything he or she had to build a business and worked 15

hours a day to get to their dream and now the president says, you didn't build that. they absolutely did. >> well, i mean, if you've got a business you didn't build that, i suppose the government, i guess it created the internet, al gore maybe did something to do with that too. tell that to the late steve jobs and -- >> and hundreds of entrepreneurs across the country, not just the big high profile guys. >> it's hard to take the other side of this is the bottom line, sir. >> and i could not agree more. not everybody works 15 or 16 hours every day. not everybody is willing to risk everything they have to build a business to see their dream come true. entrepreneurs are special people. they are not like everybody else. >> what do you think? what's behind these comments? what do you think this tells us about the president, about his

approach to the economy? i mean it feels like it is a slap in the face to entrepreneurs, but he pointed to government initiatives and said, roads and the creation of the internet as resources used by those people who have become successful. ignoring the fact that these people have taken big risks, raised money, taken their own life in a different path to actually create a business and thus create jobs. >> unfortunately i think it means the president doesn't understand that the government doesn't create jobs, individuals do. real people, struggling, risking, working hard. those are the people that create jobs. that's what we need today to encourage those people. we don't need more government. >> but let's be careful as well, sir, that we're -- i know this is difficult after listening to the quote but not to take it all sort of out of context and realize that perhaps the president was caught up in the

emotion of a stump speech if you will. >> there wasn't a teleprompter, this was ad libbing, no teleprompter. >> maria mentions, yes, the government created roads and made sure our schools are better around the country and try starting a business in afghanistan or some of these other nations around the world where it's much more difficult. i think those are all fair points, wouldn't you agree? >> i agree but we hear from people every day that say, try starting a business here in america today and they think it's getting harder every day, every week to start and grow a business here, not because the government is helping but because the government is making it more difficult for them. >> let me ask you about mitt romney, how do you think his approach differs from the president's approach? tell us how this could lead to different policy decisions. >> certainly there's a lot of things. one is on taxes to start with. we fundamentally don't believe

raising the top rate on s corps and llcs will create jobs. it's going to cause people in those businesses, small businesses that are llcs and s corps to not invest and lose jobs. the governor romney agrees with that and president obama believes that raising top rate doesn't affect business. >> sir, i'd like to get you in a hurry, the lead plaintiff in the lawsuit against the affordable care act, so-called obama care. we would like your reaction given the supreme court's decision and do you have any regrets in pushing the legal process as far as you did? >> we have absolutely no regrets and actually on the case that we brought, under the commerce clause was the individual mandate unconstitutional, the supreme court said yes. it was unconstitutional. but then in a quirk in the

decision it said, which individually wasn't the case before, but now it's a tax. and it's not a mandate, it's a tax and therefore the rest of the law can go ahead. >> with all due respect i think you're being disingenuous, they did not say it was unconstitutional. they ruled it was constitutional as a tax. we can both agree on that. >> they ruled it was unconstitutional if you -- it was constitutional if you called it a tax. >> right. >> but under the commerce clause the mandate was not constitutional. and that creates new law in terms of the commerce clause and what congress can and can't do. >> right. >> okay. >> and more tax. >> thank you so much, sir, good to talk with you. see you soon. >> we have 40 minutes left before the closing bell sounds for the day. we have a market holding on to good moves here 80 points higher. >> get ready for sticker shock at the grocery store. the impact the disastrous

drought is having. how are utility weathering heat wave. why he's urging congress to take action on the looming fiscal cliff. this is $100,000. we asked total strangers to watch it for us. thank you so much, i appreciate it, i'll be right back. they didn't take a dime. how much in fees does your bank take to watch your money ? if your bank takes more money than a stranger, you need an ally.

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begin your legacy, get an auto insurance quote. usaa. we know what it means to serve. welcome back. let's go to brian shackman. the united states postal service is putting its contracts with fedex up forbid next year, you

see fed exis down. the only bidder might be ups and long term, if we might privatize the postal service this could be a tectonic shift in the package wars. >> thank you very much. corn prices are hot as one of the worst drougts in years threatening huge crop years. sharon? >> the hot streak for corn prices continues, hitting a 13-month high, today near the $8 all time high we've seen. keep in mind the drought condition may be worsening in the western and northwestern part of the country. we may have more crop losses there. private forecasters are saying we're going to see hot, dry weather for the next two weeks in the west and north. we might see some rainfall in the east. that's not going to help folks in the midwest and already the u.s. department of agriculture said yesterday that only about a third of the corn crop was in good to excellent shape. more than half of the country is

already seen moderate to extreme drought conditions in june and unless the conditions change much, a lot of folks are saying we could see $9 bushel for corn coming soon. >> thanks so much, sharon. the heat wave is putting pressure on utilities to keep the lights on during the summer sizzle. our next guest has utilities in the southeast corridor, an area hit hard by excessive heat and drought this sner. >> let's talk about that, southern company ceo tom fanning and also with us pushing to defend my dividend campaign. tom good to have you on the program. thanks so much for joining us. >> great being with us folks. >> what impact are you seeing on your business because of this heat wave? >> well, it is quite good. we invest billion dollars a year in our infrastructure and generation fleet is running among the best in the united states. >> right, but are you seeing as

prices are moving up for things like corn and other utilities, you're seeing the real moves, is that going to impact your bottom line? >> no, it won't. in our regulation in the southeast, we're integrated regulated company. we pass through all of the fuel savings to our customers. in fact because natural gas has been such an important player lately, i mean we've been able to decrease prices across the southeast rather significantly. in georgia power alone, we reduce the fuel portion of the rate recently 19%. that's a total to the bill of about 6%. >> sir, you're obviously in washington today we can tell that by the beautiful live shot behind you. talk about the defend your dividend campaign. what you're trying to do down there for an issue that is so important to so many people who were watching you and this network right now. >> it's really important for america. this transcends the electric

utility industry but we have a very important voice in this, important debate. we're all concerned with the united states economy and preserving and enhancing our future financial integrity as a nation. for generations of americans to come. one of the things we have to do is comprehensive tax reform. now that's probably not going to happen through the end of this year, maybe it will happen in '13. until then, there had been proposals that will i think in a tactical level raise taxes on dividends. what we need to do is this, there's really two simple concepts, number one, let's link together the tax rates between dividends and capital gains. make sure that we have parity in those those important investment options are treated. second is, in order to encourage capital formation, and therefore drive cap exacross the company

and growing personal incomes, we need to keep the rates on both dividends and capital gains as low as we can be. >> let me ask you about that. i'd like to get a sense of what your expectation is if in fact dividend taxes go to 43%. i don't think it's a surprise to anybody watching we're not going to get an agreement on pt fiscal cliff issue by the time the election rolls around. >> schumer confirmed that. >> after the election, i don't know what the guys are thinking in washington. this is note brain surgery. this is impacting millions of people. a lot of people still recommending dividend stocks, dividend paying companies. do you think that changes in 42% as a businessman will you change your strategy if the dividend tax goes -- will you not change often for example? >> allowing the rates on dividends to rise at that level would produce severe dur res

under the markets. >> and a market sell-off. >> exactly. >> even with recent proposal to raise the rate to 20%, you might lose across the market, somewhere between 800 billion and trillion of stock value. going to 40% is completely unacceptable. >> what is it going to do to your behavior? will it dictate your behavior if it's a 40% dividend tax? >> what we have to do is recognize that i think dividend treatments in corporations some of the longest term decisions you can make. you've got to provide for a regular predictable and sustainable environment in which to raise your dividends to get the maximum stock value treatment. here's what we have to do. we would have to conclude that congress will come to their senses and do the right thing. it is better for us to stay the course until we are convinced over time that in fact we're going to change the course of action to the detriment of america. >> i'm not sure, sir, if you had

a chance to listen to the fed chairman today elsewhere on the hill. but i'm curious to know your own assessment of the economy, particularly given the fact that you run a sizable business and the fed chairman gave a dour assessment of where we stand. >> in fact we are seeing improvement across the southeast, driven by industrial growth. it's really a bit of piece dividend from below natural gas prices. the bullish signal that we're seeing is in fact now employment is starting to come up in the southeast. but here's the worry, why we're still continuing to see improvement, all of a sudden what was cautious optimism is now cautious. we're starting to see the rate of growth continue to be positive but it is slowing. >> good to have you on the program. thanks very much for your time tonight. >> you bet, thank you. >> 30 minutes before the closing bell sounds on wall street. we have a market off the best levels as we approach the final stretch. >> intel shares slumming 13%

since hitting a high in may. we'll get the trade next. >> breaking down the company's earnings before he even gets on the conference call with analysts, join me for stacy smith in that interview after the close tonight. ics... a body at rest tends to stay at rest... while a body in motion tends to stay in motion. staying active can actually ease arthritis symptoms. but if you have arthritis, staying active can be difficult. prescription celebrex can help relieve arthritis pain so your body can stay in motion. because just one 200mg celebrex a day can provide 24 hour relief for many with arthritis pain and inflammation. plus, in clinical studies, celebrex is proven to improve daily physical function so moving is easier. celebrex can be taken with or without food. and it's not a narcotic. you and your doctor should balance the benefits with the risks. all prescription nsaids, like celebrex, ibuprofen, naproxen, and meloxicam have the same cardiovascular warning.

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welcome back. it is time for talking numbers shares of intel up as the chip maker is set to release its second quarter results in about 30 minutes. it is a good time to take a look at the stock and where we stand ahead of the earnings. on the technical side of things, mark newton, chief analyst with gray wolf execution partners and cody for williams financial group and good to have you both with us. thank you so much for joining us. >> thank you. >> let's talk about intel. earnings reports in a little while. what does it look like? >> it's getting to the point where it makes sense to buy, like a good risk reward opportunity over the next couple of months. weekly charts and stock has fallen 13% from the may highs, we have broken up trend lines and that is a short term negative as we're getting down

to the former lows. however, the monthly chart is what is attractive, if you look how the stock looks on a monthly basis, the stock over the last nine months has broken a longer term down trend line and kept the stock dormant since 2002. we've seen a long term down trend basing area that's being exceeded. so the stock is starting to pull back to levels where it's looking attractive. although the near term is dicey and the southern conductor group has been one of the worst within technology, the stock is looking increasingly more attractive. >> putting fundamentals aside, you would be a buyer of the stock, technically speaking? >> i would be a buyer and look to buy any further weakness down to $24. >> let's check the shift away from pcs, with social media, can intel compete? >> they can but it's really early. i don't think it's time to buy

intel, you have a slowing pc market and new competition, the strongest since 2007. no traction from intel into the smartphone or into the tablet market and you're getting real can balancization, i don't see any reason to buy until you're well in the low 20s. >> most important thing you want to hear from stacy smith after they close their numbers. what do you want to hear? >> he's going to talk about a slowing growth pc market. he set a target for high single digit growth. no one has been able to maintain that. pc companies and hard drisk drive companies have talked about mid single digit to low single digit. this is the first time they are going to negativively revise that. >> thank you so much, if it weighs on the stock, you're a buyer. >> that's correct. it's done very, very well so it

continues. >> thank you mark and cody. don't forget, join me for stacy smith breaking down earnings moments after they are released in the next hour of "closing bell". >> we're looking forward to that. the dow right now is ahead by 68 points off the best levels and nasdaq a third of a percent, s&p 500 two-thirds of one percent gain. one top strategist says forget the fed because the actions have been ineffective and that won't change. don't miss tomorrow's full day coverage of delivering alpha, presented by cnbc and institutional investors, it's a who's who of the investing world. we'll be there along with one current and two former treasury secretaries. how do you make money in this environment? tomorrow the key questions and many more are answered.

don't miss it. >> before we go to break, the dividend, which home builder stock has shot up the most so far this year, hov nanian, pute group or toll brothers? the dividend pays off after the break. get on your terms,es with total customer support, backed by a 100% satisfaction guarantee. so go to legalzoom.com today and see for yourself. backed by a 100% satisfaction guarantee. at merrill lynch, we understand the importance of your goals. today, our financial advisors lead from a new position of strength. together with bank of america, they have access to more resources than ever before. a steadfast commitment to help you achieve your financial goals in life. that's the power of the right advisor. that's merrill lynch.

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just before the break we xtd, which home builder stock shot up the most this year, hov nanian or toll brothers. hov nanian which has doubled its value year to date. >> the tech sector is one of the weaker stocks. >> it's been an interesting 24 hours since the announcement of marisa mayer to the stock rise and fall ahead of the earnings reports after the bell today. looking for 23 cents a share. on the opposite side of the spek trim, ma tell posting good earnings thanks to barbie and batman lifting other competitors in the space. >> thank you so much, courtney reagan. fed chairman ben bernanke so

down beat about the economy, wall street is thinking he's got to make a move at some point maria. >> the next guest says regardless of when, it will take place. with us today are collin moore along with larry canter from barclays. let me kick this this off with you. we've heard headlines that things are getting worse and there are risks to the economy. you don't think more stimulus will be effective in. >> no. >> the greater liquidity has been good in creating a buffer against shocks and i don't see the evidence it helps spur growth. i don't think any further action is required. >> how does this market perform rest of the year? >> i think it's got to get back to what individuals do, will the earnings be there? will there be policy actions, not monetary policy actions but

policy actions that will stimulate real growth as opposed to rea lying on the fed. >> collin says any more action from the fed won't be effective. i would break that up into two parts. it may not be as effective as some people think in terms of what it does to the economy. it could be very effective in spurring the stock market to go higher because people think that's one of the catalysts that the market needs. where would you be in the market right now? >> the marginal effect of additional fed actions keeps going lower. when they did qe1 during the credit crisis, that is super effective. but i wouldn't agree it's not effective at all. it does help -- you're pump liquidity into the market. >> take it from a stock market specific perspective, if they do more, ask the stock market go up and if you think they are going to do it, why not buy into it m now? >> i don't think they are going to do it in august. there is a seasonal aspect to

the data we've seen. the winter with no storms with pumped up employment and people never left so it was soft. so the fed is not sure how much of it was seasonal. i would also say to me the best indicator is not retail sales. the reason it's a real number -- >> haven't they slowed also. >> no, they've held up pretty well. it's a big ticket item. if consumers are willing to buy a car -- i'm not so sure, there's been some weakening and the fed will wait in august. if things are like they are now in september, they move in september and i think you did more of a stock market pop. >> you want to buy this market here? >> i'm a little cautious. one of things that's worrying me, there's a lot of potholes and fiscal cliff and election. this libor scandal is not helpful. because people are waiting for the next shoe to drop with other banks and banks like it or not are key to the economy. and people are very nervous

about that. you're seeing even the bank stocks get a hit from this. >> larry, tom, good to have you on the program. we'll see you soon. we have 15 minutes before the sounding bell closes, the market is up 66 points on the dow industrials. >> investors having a muted reaction to the new ceo. speaking of yahoo! earnings as well as chip maker intel due at the top of the hour. we'll have full coverage of all of the results then stacy smith will sit down with me breaking down the numbers moments after they are released. find out what they are expecting from growth for the rest of the year. stay with us on "closing bell." 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,

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so that i can go to hawaii. ♪ tomorrow, opposing views collide, bill dale

the big question of the day, is marrissa mayer the right person to turn around yahoo!. the board sure thinks so. >> investors seem unsure. then the news broke after the news of trading on monday.

the stock did get an initial pop before giving back some of the moves and shares have been under pressure. trading in a narrow range as the rest of the market posts pretty good gains. >> what do you think? you have spent more time with her because of the documentary that you did on google probably than anybody at cnbc? i think she is a seasoned executive and is a fantastic choice. i think she was the protecter of the brand running maps and running the franchise and there 20 consecutive -- time will tell to see if this is the right person but there's nothing to poo poo about marisa mayer. >> maybe it has more to do with the fact that it's a big job. there's a lot that needs to be fixed at yahoo! even for somebody as talented and young and as well thought of as marissa mayer is. >> they have taken search away

from yahoo! yahoo! was the leader in search years ago. it was ask jeefs and yahoo!. and facebook took the social net working part of it. they had terrible execution, hopefully she can make a change here. >> i'm glad you went there. i went back to what jim cramer says, no mobile, no social no cloud when you talk about yahoo!. >> take a short break. >> closing countdown next. >> after the bell, is there proof we need more regulation or better regulators, we have the head of the house panel investigating the scandal. you're watching "closing bell" on cnbc. if you are one of the millions of men who have used androgel 1%, there's big news. presenting androgel 1.62%.

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trade commission-free for 60 days, and we'll throw in up to $600 when you open an account. closing countdown time on the flor of the new york stock exchange. of course maria bartiromo, i thought the dollar index was an interesting way to start the conversation. you saw a strong rise just after bernanke started speaking the market initially thinking okay he leaves the door open for qe3 but it's not coming any time

soon. no qe and dollar positive. when the dollar started to weaken, the stock market went up and that's why we had, up 70 or so. >> i know you're not expecting it in august but at some point if the economy weakens he's sending a message, they are going to be there, the fed. >> yes, but it's tricky if the economy does better, then they don't do it. then you see a better dollar. i think it's weaker economy through september. i think the numbers will be better by then. slightly better than even chance that -- i'm saying no in august. after the august meeting, the dollar pops up a little bit and euro weakens. >> it's all about earnings, we are jam packed with earnings. it's interesting to see what ge says on friday, will give us a real window. we know the last three months aweakened and the estimates are still coming down as far as the

corporates out there. >> what do you do if you turn your attention, bernanke moves to the side and ge and other critical earnings reports coming out over the next few days. >> what i would say there are so many risks and uncertainties out there, you stick with -- we've been saying neutral risk. i think you have a right through the volatility. i think at the end when you're in this environment where everybody is worried about a recession and u.s. bet against it. when you think things accelerate, bet against that. we're stuck in a weak recovery. >> the long time very well known politician keeps saying because the sent. is so negative, you put cash to work. what do you think? >> we saw again today despite the headlines where bernanke and what was going on, the dollar -- the dow slavishly followed the dollar around, inversely. we're going to wake up in the morning and find out if there

are any surprises in europe. if not we're going to come back here and concentrate on earnings. europe will continue to be the morning checkoff one way or another. >> i'm going to head over to get ready for next hour. >> don't forget stacy smith as well. first with maria before he speaks with analysts. >> good to see you. >> art, what do you do when senator schumer sits in front of bernanke, it's all up to you? >> that's the shame of it. because bernanke is maybe not completely out of bullets but the ones he's got are not high caliber. >> he thinks they are still effective. >> he's got to say that. they are going to look to it. it's going to be difficult. i was somewhat frustrated the economy is stalling and the senators wanted to talk about libor, a price made in london. he couldn't do anything about it.

>> it's an election year. >> i made the mistake thinking they were out for the good of the country. >> so how do you put the fiscal live into context in terms of being too far ahead of what may not happen by the end of the year, larry? and that's a real significant risk facing this stock market. >> i totally agree and think the fed chairman was right. you can't expect the fed to do the hestvy lifting here an the best thing that could happen is for congress to do something. we know it's unrealistic to expect them to do anything before the election. unfortunately we have to wait until after the election in the lame duck congress. i think at the end of the day, say two-thirds of the things, we'll get a fiscal take -- not a full fiscal tightening. >> maria and i were speaking of earnings before you came over and this is a critical week. you're going to hear from general electric and microsoft and the biggest and brightest and best companies in the country start to report this week. how will you take that in terms

of your trading strategy? >> it will be important and to sound like a one trick pony, you're going to look at earnings particularly the multinationals like ge and say, how much is a weakness in europe impacting them. one of the thinks bernanke talked about that got swept under the rug, he said they are going to have a long hard time in europe trying to straighten things out. >> you have to worry about currency issues and coca-cola talking about that today. that's going to be a recurring theme, is it not. >> it will be as he pointed out, you've got several of those countries in a recession. if you're a big multinational, it's tough to make the sales. >> rarry, does qe3 happen this cal endar year. >> i would say probably not but it is a close call. >> does that mean if it doesn't the stock market finishes below where it is today? >> no because the case for no qe is the economy doing better. that's