was not a blimp like i thought. we have more on the market rally and the dnc coverage tonight,ly be hosting. thanks for watching "street signs," "closing bell" is next. welcome to "closing bell." maria bartiromo is on assignment in all of the action in europe. she will let us know what she's hearing. >> she's in the right place at the right time with the global markets all rallying after the central bank announced the new bond buying program fuelling homes to a solution that we will talk about extensively over the next couple hours. on top of that we have a positive report on private

payrolls showing good job growth in the private sector. that's ahead of tomorrow's jobs number. lots of hoping f hopes for thats well. the nasdaq composite hit a 12 year high today. >> yes, only just 2,000 more points to go. the douj right now is higher by 220 points. 13,267. strong gains across the board here. multidecade high and the s&p 500 is higher by 26 points. >> that is a four and a half year high. or there abouts. years near multiyear highs here, but will tomorrow's jobs number confirm or dispel this rally

we're having today. will a good numb make the fed rethink the stimulus? >> we have steve leisman, rick santel santelli, jeff cox with us. we heard a lot of talk about qe 3 coming, but if we get a very good payroll number tomorrow, does that actually hurt the market because that means we will not get stimulus from the fed? >> i just want to warn you that you're asking me this question when i'm in mid-thought, and nothing may be more -- >> shall we let you finish your thought? >> no, let me give you whau it is right now. keep the camera on rick here. i think even despite a strong

jobs report the federal reserve may act next week. i don't think there is much in the way of this number that will keep the fed from doing some form of additional easing. i think they are too far behind the eight-ball that any single report would meet their standard of sustainable and substantial change. if you have a tick down in the unemployment rate at 200,000 jobs, like suggested, i think the fed still goes ahead next week. >> what do you think, rick? >> to me, i would not even weigh in on it. in my opinion whether they do it or don't, there's nothing i can do to change that. >> but do you think it's a right thing or a wrong thing. you know the spirit of the question, is it right or wrong. >> let's separate out two things. one is will they or won't they

and then there is should they or shouldn't they. i'm just throwing that on the table as a probability, should they or shouldn't they is a different question. >> i think ben will do whatever he thinks is right weather it's right or not. i think the political climate we live in will make him think twice, three times, or four too manies before he pulls the trigger. >> it that's right and we're getting qe again, it's it off to the races for the markets? >> that's a little dramatic, but each qe has had less of an impact. unless they're going to literally, which this is not the time yet, but unless they're ready to throw everything and the kitchen sink into the markets, this is not the time to do it. for now draghi and bernanke have jawboned the market for weeks

and months. and time the market goes higher. at some point you have to put up or shut up. if the fed does release qe 3, i don't think will be enough to pass if i the markets. it will be set up to have a bull back. when they finally really print money, they're going to unleash a plan that's down the road, not now. >> jeff, let's focus on this jobs number. are we setting up for disappointment tomorrow, or is it possible to get a good august number. >> the question is what shade of lipstick are we putting on this pig. i know one thing tomorrow. ly be covering this norm as it develops. if it comes out better than expected i will get hate mail like you will not believe.

if you look at last month's numbers. the amount of unemployed or under employed earns was about 40 million. there is a cap of 25 million that need the government's help to guy the groceries. and this is why people go crazy when we put up a better than expected and unemployment is coming down, people go crazy and that is a big political and fed thing, a perception that the economy is struggling and we need help. >> steve, what is the expected number? >> it's about 125. >> and jeff is making my point. a 200,000, call it 300,000, that's what i hope it is, and it may end up at 100,000, i have no insight, but it would be a crop

in the budget to the numbers jeff was talking about, and i think the federal reserve feels it needs to act for what is a long term and sustained unemployment problem. >> not to mention an event going on in charlotte tonight. and president obama is getting up to make his case for where the economy stands. i think all of this rolls into that. going to be very interesting to see how he handles this. >> rick on the ecb move this morning, did you get what you expected? what do you make of that? >> trader were a little shocks. even the spanish stock market was up. they're not challenging europe's capital or paper. they were surprised by the amount of horsepower in the marketplace and i think they want to jump on board. i think they will see more of

the same as this spiral of a microphone carries europe much higher. it has a half-life, they need to come back with here is our growth plan after they stabilize rates, i think we will all be blue as we hold our breath waiting for that. >> that could be part of what's going on today, a short covering as all. thank you. >> today's move highlights a warning that other investors told us about which is things don't look so good in the economy necessarily, but central banks can step in at any time, and you have a rip your face off rally, and if you were short, you're in pain, and you can't necessarily -- >> it's the jawboning they were talking about. >> for example, let's talk more about the rescue plan by the european central bank. dr. dunn ims still raising

concerns about a upcoming crisis, here are his comments from this morning on "squawk box." >> eventually, the financial system will go broke, and we will have a systemic crisis. but i didn't say tomorrow, i said it could happen in three years, five, or ten years time. and there will be more money printing. so when it happens the dow jones could be at the $100,000, you don't know, it depends on how much money you print. >> the voice of reason joins us right now, and jack, i think you agree with mark, we're heading to some difficulty in the financial system, just maybe not tomorrow, sfliright? >> yeah. and i would not bet on the dow going to a million either.

>> what do you make of of what the ecb is doing and the markets response? >> i think the market generally takes these things far too seriously. the numbers have changed, the ability when the ecb chairman says he he will do whatever it takes, that's like me sayingly do whatever it takes to beat sieger woods -- tiger woods the next time i'm on the course. these are stopgap solutions, but the real error in coming together, the crisis, is at least possible. >> you don't believe draghi has the tools available to beat tiger woods? >> no, i don't believe he does, neither do i. >> you don't think he can necessarily pull it off? >> no, i think he has the right

spirit, the spirit is willing but the flesh is weak. >> last month you told investors you can't afford to stay out of the market, right? how should they look at what's going on today? does it make you or should it make you want to jump in? >> that's a really good -- referring to that last show gives me a really good thing to say here. the market had gone off a couple hundred points. this is a great day for buyers and a bad day for sellers. now the tables are turns, the market is up 250 points, and it's a great day for sellers and a bad day for buyers. is there anything here that should cause me to change my long term lan? well diversified, well balanced,

meets my objective. why should i change, and if i do, what should i change. 5% won't matter depending on where you're investing. >> as you know, jack, there has been a outflow of mutual fund money. many people feel the pressure ri market is a bubble right now, what do you say to that individual investor who is afraid of the stock market right now? should they think about getting in if they want to invest for the long term? >> that's a good question, but i think the question is not quite subtle enough for me. what we're seeing in that $600 billion outflow is more like

$800 or $900 bll in index funds, and $300 billion going out of actively managed funds. this has been going on for a long time, investors are very disfied with active management. and so that's a main reading from all of that and they should be disappointed. >> the bigger question i have there, should the individual investor be thinking about, with all of the problems, the worries about the fiscal cliff, the concerns, the whole wall of worry, the individual investor afraid of this stock market, whether they're investing actively or passively, should they invens for now or long term? >> it's a simple equation to me, bill.

stocks are yielding today a little over 2%. easternings should grow over a long period of time at about 5%. that should give you an underlying base in nominal terms. the bond market we know will give you around 2% or 3% yield over the next decade, because today's yield tells you that return will be. i'm a little with bill gross, but if you don't like to, what do you do? you go to a money market yield. >> jack, could we talk about the election really quickly. leon cooperman says romney wins at 100 plus points to the s&p

500, obama wins, talk away 15 points. do you agree with that? >> did he really say take away 15 points? >> would you take more? >> anybody that can get this market down to a 15 point change is not my kind of guy. i like leon, but who knows, 15 points is nothing. >> on the s&p 500, and romney would be a 100 point gain. >> i think he is dreaming. the respect the man, but i don't think anybody knows, i don't see how romney is all that good for the economy. he has a great talking program without a single fact in it. sooner or later, both parties have to be very specific about what they want to do. we need to know if they will do away with mortgage deductionsde.

they're trying to stay in the generalities generalities the politics. >> you don't get elected by being specific. thank you for being with us. >> good to be here. >> heading toward the close, slowly losing attitude here. the do you up 207 points right now. >> still a huge day for the bulls. we have it all covered here, and more ahead on this busy edition of the "closing bell." ♪ coming up, maria means business. stocks soar as the ecb unveils it's new bond buying program, maria brings us the details live from italy. and bracing from impact, why the

ceo of the world's largest job search fund says employment numbers will not improve soon no mat who are is in the white house in february. is the new kindle overhyped and at risk of being crushed by apple? we'll put everything into english for you coming up. we make a simple thing. a thing that helps you buy other things. but plenty of companies do that. so we make something else.

we help make life a little easier, more convenient, more rewarding, more entertaining. year after year. it's the reason why we don't have customers. we have members. american express. welcome in.

welcome back, 40 minutes left in the trading session here. if you're just joining us you missed a doozy of a rally so far. call it the draghi rally. stocks on a tear right from the opening bell. he announced a bond buying program aimed at keeping the

debt cliesz in cherisis in chec. we're aiming for the highest close since 2007. 13,279 is the level to watch. all ten s&p sectors are higher today lead by materials, financials, and technology. the financials index by itself is hitting it's best level in over four months. pretty good rally today. so markets getting a lift from the positive adp payroll numbers on private job growth, expectations for tomorrow's government jobs report is that we made maybe 125,000 jobs. our next guest is not very excited without action on issues. but when you have john riding

saying maybe we get a upside surprise with the next jobs number. >> president obama will take create for any jobs creating, but ben bernanke took credit for the same numbers last month. john, what does that leave president obama with? isn't it a problem when his fed chief is taking credit for the numbers? >> i think those are very much high end estimates, and i would be very surprised if the quantity daytive easing added that many jobs. everybody can play claim to how the world is different relative to what it would have been. as he said, it's not ab serveble. the fed last it's claim's based on the model. i think there was a fair degree

of skepticism at jackson hole that quantitative easing as done as much as the fed chairman was claiming. >> what's your estimate for tomorrow? >> we were projecting 150,000 payrolls. today's numbers, not only the adp report, but also the numbers from the isn tend to suggest to me there will be upside purr prize on that. so that estimate for 125,000 looks to me on the low side. gary, the world you're using is tentative, you still see a number of clients reluctant to hire right now, yes? >> look, i think we're dieing from incrementism. the reality is that we're several trillion dollars that we

have to go from here to there. we just made proportions that cannot be kept and we see incrementalism as the biggest enemy that we're fighting today. >> and it sounds like you're hearing negative things? >> i think we're being realistic. ceo's today, there is a fight for growth and relevancy. and i think all of us are looking to innovate and then hire, not higher and then innovate. >> so what will get corporations to hire again? >> the plan, you look at spain, bulling $100 billion out of that country this week, 46 million people in the united states on food assistants? that's staggering. we have not produced a single

net new job. there is a bridge that has to be gapped, and ceos want to see what plan and the path is. >> the fiscal cliff has a lot of ceos concerned, what about you? >> i think that's the number one concern. it's a 3% hit to incomes in gdp terms, and the economy only grows 2%. if that happens, and we won't know until after the election, it will wipe out job creation until next year. we're hoping and thinking it gets fixed, but we have to see the election and get into december. >> more things to worry about and think about in the meantime. >> pretty sobers. >> 37 minutes until the closing bell. the nasdaq is higher by 61. >> that is a four.5 year high for the s&p 500, is there more

room to run? should you take profits? new claims, president obama and john boehner had a massive blow up over the collapse of the debt deal last year. we're talking about a tirade from the president, can they possibly work together to fix our debt situation if both remain in power after november. and don't mistonight's special coverage of the dnc convention, president obama's acceptance speech right here on cnbc.

gold rallying above the $1700 level. sharon epperson has more. >> it is the first time we have seen it sell above $1700 an ounce. look at that one week chart wa waiting to hear what the ecb had to say about direction for stimulus. certainly gave it that impetus.

the key will be what happens with the jobs data, and that could potentially derail the gold rally if it's a good number traders say. >> thank you, meantime, the stock market is rallying today, trying to close on a 4.5 year high. we're going to look on talking numbers here, nark newton with grey wolf execution numbers, and on the fundamental side is charles ortel. thank you for joining us today. we have been drifting for awhile here and now we have this pop, what do you think of the market right now. >> it is a short term development. today it's moving up on an expansion of volume and breadth. this trend since last year has

been broeblgen ken to the upsidn consolidation as well. short-term it's a good development, i expect the market to move higher in the next few weeks. there are a couple negatives to mention in terms of longer term, and the whole move this year has not been confirmed by momentum, you still have the dow joins and the russell 200 have have not confirmed this. >> low volume, things like that, charles, do you think this rally is for real? corporations have to see growth and we have not seen that have we? >> absolutely not. i think the four most important words investors should remember came out of client eastwood's house, and that is "do you feel lucky." taking bait off of the table because there's huge storm tables on the horizon.

>> you sound like you would be taking profits. >> yes, absolutely. come next year, look outside the country at the middle east and i could go on and on. >> i wish you could, but we must move on ourselves. good seeing you, the skepticism continues here. >> yes, as bob pisani likes to say, the most hated rally ever. the nasdaq is higher by 64 points. very, very, very strong session still 28 minutes behind the closing well. coming up, maria bartiromo is on the ground in italy getting reaction to the central banks today. amazon with a bigger and better kindle fire. and wall street's reaction is next. and speaking of tablets, how will google's device compete with the new kindle. we'll talk to google's chief business officer.

tdd#: 1-800-345-2550 you should've seen me today. tdd#: 1-800-345-2550 when the spx crossed above its 50 day moving average, tdd#: 1-800-345-2550 i saw the trend. tdd#: 1-800-345-2550 it looked really strong. tdd#: 1-800-345-2550 and i jumped right on it. tdd#: 1-800-345-2550 since i've switched to charles schwab... tdd#: 1-800-345-2550 ...i've been finding opportunities like this tdd#: 1-800-345-2550 a lot more easily. tdd#: 1-800-345-2550 like today, tdd#: 1-800-345-2550 i was using their streetsmart edge trading platform tdd#: 1-800-345-2550 and i saw a double bottom form. tdd#: 1-800-345-2550 so i called one of their trading specialists tdd#: 1-800-345-2550 and i bounced a few ideas off of him. tdd#: 1-800-345-2550 they're always there for me. tdd#: 1-800-345-2550 and i've got tools that let me customize my charts tdd#: 1-800-345-2550 and search for patterns as they happen. tdd#: 1-800-345-2550 plus webinars, live workshops, research. tdd#: 1-800-345-2550 whatever i need. tdd#: 1-800-345-2550 so when that double bottom showed up, tdd#: 1-800-345-2550 i was ready to make my move. tdd#: 1-800-345-2550 all for $8.95 a trade. tdd#: 1-800-345-2550 can you believe it? tdd#: 1-800-345-2550 i love it when you talk chart patterns. tdd#: 1-800-345-2550 open an account and trade up to 6 months commission free tdd#: 1-800-345-2550 online equity trading with a $50,000 deposit. tdd#: 1-800-345-2550 call 1-888-292-3787

tdd#: 1-800-345-2550 and a trading specialist will tdd#: 1-800-345-2550 help you get started today.

less than half an hour to go in trading and we're still near session highing, bob pisani, what do you think? >> they're anticipating moder e moderately better numbers. it's on the cusp if we're going into a qe 3 prak. there is new highs on the s&p, nasdaq is a 12-year high, and a lot of new sector eps. dividend payers at new highs, a lot of short coverings, etfs having very big volume today. >> the skepticism still abound,

isn't it, bob. we'll talk more about that later. so speaking of rallies, amazon today hitting a record high earlier in today's education as they unveil their newest version of the kindle fire. >> reporter: will, the stock price grew into the event and it doesn't fall off. what jeff said is that they're not trying to make money on the device, but on what they sell after people have it and use it. because it's not shipping until november 20th, will they be able to build enough. listen to what they had to say fist on cnbc.

>> what kind of volume will you be able to develop? >> we have millions of devices. we're building millions of each kind of these devices. >> that is key, apple expected to come out with a smaller ipad that will compete with this across the line. they say they'll have enough for the holiday season, bill? >> amazon is getting a huge boost in california right now, consumers are buying in mass quantities ahead of sales tax being collected. some warn the boost will be short, and it could hurt later. we'll have more on that later here on "closing bell." >> we have about 22 minutes before the closing bell. the dow jones is up by about 234

points. >> stocks are on strak to close at multiyear highs, don't get excited just yet. one of our next guests say investors brace themselves for a nearly 5% pull back. >> an economy election, so don't miss our commercial coverage of the dnc convention and president obama's speech tonight. we'll have what it means for your money, all tonight. and commitment is not limited to one's military oath. the same set of values that drive our nation's military are the ones we used to build usaa bank. with our award winning apps that allow you to transfer funds, pay bills or manage your finances anywhere, anytime. so that wherever your duty takes you, usaa bank goes with you. visit us online to learn what makes our bank so different. >> announcer: meet mary. she loves to shop online with her debit card. and so does bill, an identity

thief who stole mary's identity, took over her bank accounts and stole her hard-earned money. unfortunately, millions of americans just like you learn all it may take is a little misplaced information to wreak havoc on your life. this is identity theft. and no one helps stop it better than lifelock. if mary had lifelock's bank account alerts, she would have been notified in time to help stop it. lifelock has the most comprehensive identity theft protection available, guarding your social security number, your money, your credit, even the equity in your home. you even get a $1 million service guarantee. that's security no one can beat. [♪...] [click-click] [♪...] ask me. [ male announcer ] if you think even the best bed can only lie there...

ask me what it's like when my tempur-pedic moves. [ male announcer ] ...talk to someone who owns an adjustable version of the most highly recommended bed in america. ask me about my tempur advanced ergo. ask me about having all the right moves. [ male announcer ] these are real tempur advanced ergo owners. find one for yourself. try your friends on facebook. see what they have to say unedited. ask me what it's like to get a massage anytime you want. [ male announcer ] tempur-pedic brand owners are more satisfied than owners of any traditional mattress brand. [ woman ] ask me why i'm glad i didn't wait till i'm too old to enjoy this. [ male announcer ] treat yourself to the ultimate sleep experience and save up to $400 during the tempur ergo savings event. plus visit tempurpedic.com for full details on our 0% apr financing with four years to pay. don't wait. the tempur ergo savings event ends october 14th. visit tempurpedic.com now. tempur-pedic. the most highly recommended bed in america.

well, the nasdaq hit a 12 year high today, seema mody has detail. >> yes, a strong command for memory disks has been helping sandisk. a lot of anticipate between the iphone five, bottom line is

semiy conductor stocks are leading the tech sector higher today. the pharmaceutical index reaching highs today. back over to you. >> so, stocks rallying out of the gate. we're moving higher again. major averages right now are up about 2% on average. despite this rally, ubs's john nan golib is still a skeptic. >> you're not happy today like everybody else? >> you never want to be more wrong than when you have a bearish call. you want the market to go up, it's good for all of us, but i don't think it's good for the

market. >> the finance minister said you can't solve fiscal problems with monetary policy. >> but you can buy time, right? isn't that idea? what does it mean to you? >> we're in the opposite camp. we had a target of roughly 1450 since the start of the year, but we've been nervous about that target since the beginning of july. the market is up about 3.5%. we think it's driven by two factors. one was draghi's line in the sand, the second was the better than expected july pais roll number. both of those developments squeezed out -- >> aren't you worried this is the classic wall of worry and the market keeps climbing it. >> at the end of the day, earnings are expected to be down

4.6% in a quarter, lower than a year ago. we just got this liquidity here, forget about the fundamentals. this will be the second quarter in a row, and i think it will be worse than people think. the election will be partisan and hard. do i think you'll have continued momentum, yes? do i think you'll give it back in the later part of the year? also yes. as you characterize this, you say it's the most hated rally weave seen in a long time. >> that's right, you can't solve fiscal problems with monetary policy, but you can solve stock market problems. does anyone drought that draghi -- he is not even targeting the stock market supposedly. there is no doubt that they're

having an influence on it. it's an even call. >> as you well know, there are those traders that while they enjoy this rally, they're looking to say this is a lot of short covering right now. they're not looking at fresh buying. >> that's not clear, i have pointed out there is a lot of activity in etfs that will short the market. we're getting modestly higher. in spain, bill, they had twice normal volume on nearly every stock market in europe. >> what are you buying right now, bob? if we still get to your target level, we're 20 points away, what's going to take us there. >> the view that risks remain elevated, we continue to want to expose investors to high quality stocks. companies with revenues and paying dividends.

as long as you have that quality spurn experience -- you want to remain exposed but stay with quality stocks. >> i still like technology, it's able to grow in a week environment. if i have to be defensive, i would rather with staples and health care than utility. >> 13 minutes before the closing bell, the dow still chugging higher here 232 points. >> do you like alphabet soup? it's the ecp, ecff that has to do with the gains. we'll translate @ to english. and maria bartiromo is in

italy and she'll have the latest.

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.

so, a good day for the bulls as the major averages hit multiyear highs. right now the do you ats if highest level in 5 years. the nasdaq looks it will settle at a 12 year high going back to december of 2000. >> and it's sparked by the federal bank's actions. omt, in english, the ecb is going to buy the debt of countries like spain and italy in a period of one to three years to keep their interest rates lower, and they're not going to squash the other creditors like we saw in greece. >> they will not be a preferred

creditor. >> no, that's right. here is the key thing, it will have conditionality. yes, we will help you keep your interest rates lower spain and italy, but you have to agree to do certain things. you have to enter an agreement, written down. i want you to look back at august of last number, more than a year ago, a big spike up, that's when the guys who used to run the ecb were have conversations behind closed done. they say you have to promise me you will clean your room, and then we will help you out. silvio said yes, but he never cleaned his room. now they're like no way, you have to prove to us you're going

to stick with the rehab. >> a lot of that is a nod to the german's as well. >> right, in theory some of that was assuage. >> they put the money in, but they take it out from the banks themselves, it doesn't raise the monetary base net. it's not inflationary. you got that? there will be a test on friday. >> clean your room. >> exactly. we're going to come back and recap this rally for you. will we see a big sell off if the market did you want like the jobs report that comes out tomorrow? >> yeah, stay tuned for that. don't miss the coverage tonight is of the dnc convention. our coverage begins here at 8:00 p.m. eastern time.

bob... oh, hey alex. just picking up some, brochures, posters

copies of my acceptance speech. great! it's always good to have a backup plan, in case i get hit by a meteor. wow, your hair looks great. didn't realize they did photoshop here. hey, good call on those mugs. can't let 'em see what you're drinking. you know, i'm glad we're both running a nice, clean race. no need to get nasty. here's your "honk if you had an affair with taylor" yard sign. looks good. [ male announcer ] fedex office. now save 50% on banners.

like in a special ops mission? you'd spot movement, gather intelligence with minimal collateral damage. but rather than neutralizing enemies in their sleep, you'd be targeting stocks to trade. well, that's what trade architect's heat maps do. they make you a trading assassin. trade architect. td ameritrade's empowering web-based trading platform. trade commission-free for 60 days, and we'll throw in up to $600 when you open an account. okay, three and a half minutes left in the trading day.

back when draghi said he would do whatever it took to preserve the euro zone, and the markets have not looked back since that time. after the news conference this morning, i think you would agree that draghi got exactly what he was after from the markets. there was a stutter step, and then it was off to the races. there was a good quarter percent gain there. as for the stock markets in europe, and there was a gain in the spanish stock market and the italian stock market. yes, that the the other thing they want today see was a continued decline in the european long rates there even though they're talking about buying shorter term maturities,

the ten year yield down in spain. now our stock market, rallying on the open this morning, has not looked back. we're getting stronger on the close here, the bias on is on the buy side here. right now a gain of about 1.8%. the ten year yield is up to 1.67%, and bill gross said this would happen, he said he feels the prices are inflationary. gold back above $1700. first time we have seen that since march. now we have another day to worry about, the job's number tomorrow. >> the number that you're hearing is around 140 to 150,000 jobs added. today takes any possible negative reaction out of that

number tomorrow. >> this is a game changer today? >> i think it will be. a bad number, you have the fed ready to do whatever it needs to do. i really think it is a game changer. >> bob, do you agree? >> the numbers will be very important for the balance of the year. i was on with you a month ago, and i say payrolls need to be above 100,000. we're barely there, but it's bewhere we were. the fed and the markets have the ability to breathe a sigh of relief here and trade higher, as far as draghi is concerned, he also said that the ecb needed to steel a page from the fed's playbook. when they announced it, they said they would do $600 billion. also, there could be a stigma associated with the ecb just