i'm still speechless after my yeager interview. tomorrow, day two on our series on alternative investing. we're talking classic cars, under 100 grand what you can buy today. >> thank you for joining us today on "street signs." "closing bell" is next. happy monday to you. welcome to "closing bell." i'm maria bartiromo at the new york stock exchange. here's something you don't see often on monday. market trading high. love this rally. >> although we are off the highs right now. we'll see what happens. >> and volume is okay. >> i'm bill griffin. you can think strong earnings. citigroup helped lift wall street this morning. we have a deluge of big names to report, goldman sanctions, ibm, google, just to name three. will earnings surprise us and carry this market higher?

we'll get into that but first a look at averages. the dow was up about 100 points at the high of the session. we're up 75 now at 13,404. the nasdaq, which has been the laggard recently, up a quarter of a percent at 3ishgs 052 after the stutter stup opening this morning. the s&p is up 1435. >> it is a big week for earnings. they're kicking into high gear this week. certainly in terms of banks. we have the results from citi today. we'll get numbers from bank of america on wednesday. as well as goldman sachs. plus tech numbers from bell weathers, tech and ibm. google and microsoft out later in the week. >> a lot more as well. let's dig into "closing bell exchange "with jeff, michael of poerlt foal yoe family of funds, our own jeff cox and our own rick santelli.

michael, you're looking at uncertain time. you want to stay defensive and stay as diversified as possible because you're not sure what the earnings will produce, is that true? . >> while that's true with equity market, cautiously optimistic with stocks. a lot of liquidity on the sidelines and a general negative sentiment among a broad swath of investors, that's a good point to get into equities and be there for the long term. if corporate earnings fall down, we don't get the right political environment, the wrong forecast in growth stories, then stocks could fall from here. they're very reasonably priced right now. >> jeff, what about the momentum behind this market, do you really want to get in front of this train? we've already had some downdraft on fundamentals last couple of weeks. what do you want to do at this juncture? >> at this point, the momentum, we are to keep it in perspective.

we have very low expectations on earnings. with low expectations, i don't know if this is going to be the momentum we're looking for. i anticipate that with all the uncertainty ahead of us, it's going to take a lot more than just an okay quarter. so, the expectations are a big key to this -- >> does that mean you want to sell into it? >> absolutely, sell into it, because the uncertainty, the fiscal cliff, everything we have ahead of us, i think at this point you just have to be extremely extremely cautious because this is extended beyond what a lot of people anticipated. >> meantime, jeff, you're tracking analyst estimates and they keep coming down, don't they? >> yeah. and we're actually at a low point, 11-year low point. we have five positive revisions from analysts with their earnings outlook. for every four positive revisions, negative/positive ratio, not looking good there. most recently i've seen energy revisions have turned around, they are now negative.

just a long way of saying analysts remain pessimistic even though we're off to a pretty good start so far. >> bill, what do you think of this pimco tweet. bill gross tweeting today saying, even with high octane qe, asset prices, that including bonds and stocks, have plateaued. find satisfy carry and be conte content. >> bill gross was early on, as soon as quantitative easing was announced, he was saying get into basic material assets. he thought it was inflationary and gold took off. gold has been coming back to earth here lately. rick santelli, what are traders talking about in that regard right now? >> traders on the floor are pretty much meat and potatoes. they look at june, looking for s&p 500 earnings to be positive for the quarter to the tune of, what, 2.7, 2.8%. now they've flipped negative. they think it could be the first quarter of negative earnings in almost three years. they're going to pay particularly close attention to the interest rate to maybe divine any changes. even with the fed managing interest rate and equities to

some extent, we've hunkered down, we've been in a narrow range for treasuries. once you see closer to 2%, i think they'll operate on the notion that stocks are paying a whole lot more attention to the future reflation. >> i think earnings quality is so important here. when you look at bank earnings, a lot is hocus pocus, loan loss reserves taken out to bolster their balance sheets. jpmorgan, wells fargo, investors weren't buyingit. sounds like inside baseball but i think it's very important. asset-backed securities are at the non-aaa rated, at highest level since 2007. that means the less than great quality assets out there have risen up to extremely high level. actually, and the greatest growth has been through student loan receivables which have increased more than seven-fold year over year. it's an amazing point.

you have to start to look at what the quality of some of these things are here. >> no doubt about it. >> that's called reaching for yield. that's what this is all about. >> reaching for yield, quality as well as guidance, the two items we focus on. michael, let me ask you to stick your neck out here. knowing what we know about financials, is this a group you want to get behind going into further numbers coming out or if there was a group that you wanted to get behind or a company you you wanted to get behind, knowing google, ibm, all these companies, bank of america, goldman sachs coming out this week, where do you want to be placing some bets? >> in the short term, i mean, i still think that we would probably be diversified with gold and we would be in u.s. names, levered for growth but also with healthy dividend yields and strong supportable businesses. you know, we like energy. it's not going anywhere. we like the u.s. refiners. i do like financials in the long term although, you know, i would argue that if the positive, if you will, effects of qe, if there are any, are diminishing. the laws of diminishing returns.

i think that's also doing -- that subsiis reducing the net earnings banks are seeing in earnings and i think that's why we've seen bank stocks slow down. >> jeff sica, anything you're buying in equities? >> right now i like energy. i think energy has probably the most potential going forward. some of the agriculture companies. i'm in it to win it. i'm not just sitting on the sideline waiting in every area. there are stocks that have some potential because they're backed by things like commodities. they have the ability to increase in value. as we start to see this inflationary trend start to pick up. >> all right. gentlemen, thank you all for your thoughts today. appreciate it very much. see you later. >> thanks. heading toward the close, we've got about 50 minutes left in the trading session. the dow was up almost 100. we're up 78 now. >> we have a lot more to come on the jam-packed edition of the "closing bell."

>> announcer:g murdoch, two of the nation's largest pension funds voting to oust rupert murdoch as chairman of news corp. are investors better off without him running the company he built? plus, jim rogers, the indiana jones of investing, warning of financial armageddon. find out exclusively how he's preparing for the next financial meltdown. and fiscal cliff fallout. >> this uncertainty is going to increase as we get closer to year end and it is a concern. >> announcer: imf managing director christine lagarde joins maria for a one-on-one interview you can't afford to miss.

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session. it has risen as many as 100 points early in the day. health care, consumer discretionary among best perform be sectors today. telecom, after last week's huge declines, they are the laggards again today. health care hitting the highest level in about a week right now. on the eve of news corp.'s channel shareholder meeting, scheduled for tomorrow, two of the company's most powerful shareholders are looking to give rupert murdoch and his sons the boot. >> the california state teachers retirement system, say they want rupert out as chairman and they will not vote to re-elect murdoch or his son it is to board. is it possible to oust the family from a family-run company? >> let's talk about that with vasili, senior media analyst and matthew ha matthew harrigan. you're not buying this, are you?

>> it is, after all, a family-controlled company. they control 38% of the voting power. previously there were attempts like that. i think last year we had a lot of noise going into the shareholder meeting and the board is still very heavily representative of the murdoch family. >> math thou, what do you think? >> no, not with prince's involvement and very good stock and operating performance over the last year. you know, i think some of the issues in the uk at least perceptionwise is invariably avoided. he ceded to the publishing spin but i think over the longer time frame he certainly created a lot of value. i think sometimes he's bucked the trend doing things like starting fox news on an organic

basis, which wasn't popular on the street. over the long term there certainly is a discount in the stock. and i think the stock would go up if there is management changes. >> that's what i was going to ask you about. you feel that if chase carey became the ceo the stock would take off. >> he's more of a technocrat. he would like to focus on entertainment and sports. the issue is more politicized in the uk than here. i think chase could ultimately be ceo on an interim basis but i think in the long term there will be a murdoch that leads the company. and you have to remember, you know, rupert's mother, dame elizabeth, 103, 104, still alive down in australia -- >> he has good genes? >> good genes. >> does it matter if they hold board positions? the murdochs already control the company with almost 40% of the stock. so, you know, does it matter if

they're on the board or still controlling the board? >> visaly? >> i think it's a matter of semantics here. if we have chase go from chief operating officer to chief executive officer, it's still the murdoch family that holds the major shots. on the margins people care historically if they see the family has less of a hand than day-to-day operations and chase has more room to execute his vision, the stock usually responds favorably to that. for example, last year. but ultimately, when i say that, it is a family-controlled business. once shareholders buy into it, they're buying into a family-controlled company. >> haven't the distractions of the last couple of years hampered their growth strategies and the fact they aren't able to enact any strategies because they've been so obsessed with what's going on in the uk and wiretapping and all of that? i mean, has there been a cap on earnings, es sshlly, over that

time? >> not at all. actually, the company has seen very good operating results. the newspaper segment, publishing, is a fairly small percentage of their earnings. their biggest earnings machine is capable networks. and those are firing on all cylinders no matter where you look. domestic channels, regional sports networks, international. it's a very, very healthy situation there. i wouldn't say that operating performance for the company as a whole was somehow impacted by what's going on in the uk. >> we'll see what happens tomorrow. thank you for joining us today. appreciate it zoom thank you. the final stretch, a pretty good rally holding up. 45 minutes before the closing bell sounds for the day. the dow up 83 points. banks leading the way. gold coming under pressure. gold companies in the neglenega today. you remember microsoft's zune? >> i do. >> i don't. it failed to compete with the

ipod. we'll see if their new push into online music will take a bite out of itunes. you could be looking at the next fed chairman if mitt romney wins the general election. would glenn hubbard cut back on fed stimulus? i'll ask him. i've been a superintendent for 30 some years at many different park service units across the united states. the only time i've ever had a break is when i was on maternity leave. i have retired from doing this one thing that i loved.

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welcome back. microsoft has not had the best track record when it comes to music, that's for sure. the company is now doubling down on the biggest music venture

yet. julia with the story. >> reporter: we remember the zune disaster but now microsoft is launching four different music services under the umbrella of xbox music, tying them to its successful and popular video game console brand, as it builds an entertainment ecosystem to take on apple. xbox's global catalog of 30 million songs will be available for free streaming with occasional ads, on xbox with computers and tablets loaded with windows 8 software. microsoft is hoping budgeteding xbox music with windows 8 products will make those gadgets more appealing. xbox is taking on every major digital music service out there, competing with spotify, itunes and google and amazon stores and a $10 subscription service is similar to spotify.

xbox's smart deejay has a customizable playlist like pandora. xbox music will be available for apps for android and apple ios operating systems. we'll have to see if microsoft's lure of free music can really compete with apple's itunes. >> thanks so much. bill, over to you. >> the question is, is microsoft making the right move or is it a bad move given apple itunes continue to dominate in that space? let's talk numbers on apple versus microsoft today on this issue. on technical side is carter worth, on fundamental side is maxwell wolf. max, i'm going to start with you. does this new service by microsoft have a chance? >> yeah, i think it has a chance. i don't think it has a chance to take over what will be an increasingly crowded market but has a chance to push back on microsoft as uncool and yesteryear. a chance for them to push out a new group of products, the

tablet that's coming, the smartphone they're licensing or putting out with windows 8 and to find another revenue stream to do something that's social. i'm surprised they didn't talk more about social. i don't think it's a bad idea but the weight of history is against them so they have a lot to prove and not a ton of time to do it. >> i'll ask you which you like better, but let's look at the charts here, carter, and see who you like. >> it's not even close. >> i know. but i asked anyway. >> if you draw a trend line, what charts are all about. we've been right on trend. the last four months apple has been quite aggressive and has risen with the market. microsoft, same chart, same one year, same low in november, and microsoft has broken trend. then this. imagine being unchanged the last four months. stocks are literally surging. microsoft is unchanged. where are the buyers? just for fun, a little long-term chart, which is really -- this

is quite remarkable. if you were to have bought apple or microsoft the day microsoft ipo'd, of course, apple was out in business -- >> 1986 we're going back to. >> microsoft has doubled the performance of apple, which who would have thought. >> some catching up to do for apple? >> you wonder. >> max, who do you like right now? >> up through the apple earnings about two weeks away, we like apple better. we think it will throw off more money. in the longer term, i think microsoft has a second act. it remains to be seen. if they get it half right they'll outperform apple in six months and longer. >> thanks for the history lesson, carter, max for joining us as well. >> we're picking up some steam here, bill. just about 35 minutes before the closing -- yeah, jim rogers is in the house. we'll talk to him in a minute about investing around the world. dow up 49 points. 35 minutes before the bell sounds for the day. before the bell president obama touting his support for small business is on the campaign trail.

>> folks who create most new jobs in america are america's small business owners. and i've cut taxes for small business owners 18 times. >> wow. one of our next guests says that's not entirely true. the devil is in the details. commodity kings jim rogers says it doesn't matter who wins the presidential election because neither candidate knows how to fix the economy. he joins me next exclusively straight ahead. falling off the fiscal cliff is nothing compared to falling from the edge of space. like this guy just did. he landed on his feet. can our economy land on its feet if we go off that fiscal cliff? lots to come to the "closing bell." do you trade? with scottrader streaming quotes, any way you want. fully customize it for your trading process -- from thought to trade, on every screen. and all in real time. which makes it just like having your own trading floor, right at your fingertips. [ rodger ] at scottrade, seven dollar trades are just the start.

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welcome back. u.s. stocks not only the ones getting a vote of confidence from investors today. take a look at china. inflation falling for the month of september. exports were up 10% for the month in china. good news when so many have been sounding the alarm.

is china really given in the clear given the warning by multinationals and luxury retailers? we've got exclusive for many call the indiana jones of investing, jim rogers. jim, good to see you again. >> i'm delighted to be here. >> nice to have you. >> a lot of people being negative on china, makes me think i should buy china. i was wait fog are a big collapse but maybe i should buy now. >> you're just back from singapore. what's going on, from your standpoint, in items of china. are things cooling down? >> yes, they've raised interest rates many times, doing their best to kill inflation and kill property. i wish their central bank would wouldn't loosen up if i were china, but i'm not china. >> don't loosen up. are you investing in china right now? >> no, no, no. >> staying away. >> whenever china collapses, i buy. i've only bought china three times in the past 10, 15 years.

>> you're short we can it'ses in the u.s. and you're not going to touch equities in the u.s., is that right? >> no, not with my money. not even with your money. >> why? >> in 2013, 2014 we're going to be economic problems. we always have, maria, every four to six years, since the beginning of the republic. next year we're going do have problems again. either they're going to raise taxes or bungle something, so i wouldn't want to buy shares in the u.s. >> but we all know that this market is rallying on qe and on central bank easing and all this money. why should i get ahead of this train that is really powering forward? >> it's been going on for three years. qe1, qe2, qe3. none of them solved the problems of the economy. they solved the problem of the new york stock exchange. that's not the economy. it can't go on forever. >> did you say you were short microsoft? >> yes, short microsoft calls. >> why? >> why not?

what does microsoft got to do for the world? microsoft was a speck stack lar company 20 years, 30 years ago, but this is 2013, 2014. what is microsoft doing for us these days? >> is there someone benefiting from the weakness you see in microsoft? is there a technology company you would put money in right now? >> technology has been one of the few places very exploited. even apple, i've shorted an etf that's got apple in it. do i know what i'm doing it? probably not. we'll find out. >> yeah, right. that's why you keep being right time after time. you say we'll have economic problems next year. we have economic problems right now with the fiscal cliff. talk to us about the fiscal cliff. you think this is going to be a worse fallout from the fiscal cliff than we saw in 2008. that's a big statement. >> whenever you raise taxes that's bad for the economy. mr. reagan cut taxes and things were good. mr. kennedy cut taxes and things were good. raising taxes has never made an economy grow. this is simple stuff. >> the president is talking about that he's cut taxes for

small business. when we go off the fiscal cliff and taxes get higher, small businesses facing the highest increase since world war ii because they pay the ordinary income. >> and obama care. that raises taxes for obama care. even if they don't have other bush tax increases. we've got obama tax increases. all sorts of taxes coming. >> does anything loosen up after the election? i mean, hypothetically speaking, let's say the president wins, let's say romney wins. what's the difference in terms of loosening up? >> if you're mr. -- romney's friends, you'll do well after 2012. if you're mr. obama's friends, you'll do well. but you and i, the people watching this show, no. debt's going higher. taxes are going higher. this is not going to be fun unless you're mr. obama's friends or mr. romney's friends. >> unbelievable. what does that mean, mr. obama's friend or mr. romney's friend? who are -- >> i'm not one. i assure you i'm not a friend of mr. obama or mr. romney. >> in terms of otheret classes, commodities.

we've seen iron ore get crushed because of what's happening in china. where are the opportunity in commodities right now? >> the reason iron ore is crushed because all these people started riching in and adding capacity to the iron ore business. i don't pay much attention to iron ore because it's not futures. i only get involved with commodities that have futures. iron ore, they all build mines at the same time, so iron ore went down in price. it's partly because of china but mainly because of too much capacity. >> do you see any value in commodities right now? >> ag -- maria -- >> give up the -- get a farm. >> lamborghini started out making tractors. you can learn to drive a lamborghini tractor. >> agriculture is a place to put my oil. what about oil? what the heck happened there? >> i'm not buying any commodities. if hi to buy commodity right now, i would buy agriculture commodities. i'm just watching because the world economy is going to be bad.

short stocks, long commodities and curranencies. >> i just got back from japan. the whole talk is the issues between china and japan. do you worry south sea will be impacted, navigational export positive of that waterway? >> maria, i worry about everything, especially when politicians are concerned. these two little islands are so insignificant we shouldn't be talking about them, but it could lead to war. >> exactly. >> so we have to talk about them. of course i worry about that. i'm looking for places to invest. maybe china if we just pointed out, maybe japan. these are markets that are down. russia, i'd rather invest in russia if i could find a good way to do so. >> what do you want to invest in russia? a lot of people wonder if russia is a place with putin's policies. this is a big -- >> i went -- first went to russia in 1966. i've been totally negative ever since but mr. putin seems to be

changing his tune. maybe because he's worried about history, for whatever reason. i'm convinced that things are changing in russia for the first time in my life. >> so, you've got an adviser position with russia's vtb bank on an agriculture bank. >> yeah, but that means nothing. absolutely nothing. >> why vtb bank? >> the reason i did it is because i'm convinced things are changing in russia. that's why i said i would do it with these guys but now i'm looking for investments in russia, in the stock market or the currency, maybe i'd buy the ruble. i'm looking for investments in russia. if you know any, don't blurt them out on this tv show. don't tell them. call me first. >> let me get your take on india. i want to know what you think, because when i was in japan this weekend, there was a lot of talk about this domestic demand. 11 to 12 million people joining the work force every year in india. this >> i'm short. >> short india? >> short india stocks. >> why? >> it's a disaster.

massive inflation, massive balance of trade problems. it's a debt to equity -- debt to gdp ratio of over 90%. the only people bullish on india are people who haven't been to india or tried to drive across india. i'm short india. >> ceo of second largest bank in india is talking about all this domestic demand in india. >> obviously smarter than i am. he's long india. he's long and i'm short india. >> now back to the federal reserve. i know how you feel about the fed. but, jim, can you really get in front of the fed's -- what they've been doing for the stock market, pushing so much money into the market? >> certainly hasn't done me any good, has it, because stocks are right. you're right about that. is the economy up? no. granted, the stock market looks ahead. when i look ahead, i don't see good things. all i see is money sloshing around and it's coming here, coming to the new york stock exchange. >> are you expecting a sizeable decline? juror short u.s. stocks so how significant might a decline be in your view?

>> i would expect we would see serious problems by 2014. you should be worried. i'm worried. you should be worried, too. >> what am i worried about? >> you should be worried all of this money printing is going to come to an end. all this government spending. mr. obama is spending a lot of -- you know that employment is going up in ohio. you know why? because spending a lot of money in ohio. he's spending money where he has to win. do you think that's going to continue in 2013, 2014? >> were you surprised from those numbers, down from 8.1%? >> i know you have to report stuff like that, but i don't pay much attention -- >> do you think they were manipulated? >> first of all, the numbers always look back. the market's looking forward. second of all, they're always revised. so, by the time the revised numbers comes out, who cares anymore except cnbc. i don't care anymore. >> jim, you're the best. good to have you on the program. >> thank you. >> jim rogers holding chair with me on the floor.

20 minutes before the closing bell signs. up 84 points on the dow industrials. s&p 500 up 14% in 2012. you'll hear the case for why stocks may be cheap on the other side of trade jim rogers is on. don't miss my one-on-one interview with christine lagarde from tablging the fiscal cliff to tackling europe's debt crisis. you'll want to hear what she says about france's 75% tax rate. americans are always ready to work hard for a better future. since ameriprise financial was founded back in 1894,

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welcome back. time for market flash. >> an interesting report hitting the tape. wells fargo thinks the money sprint will go from soft bank will go to lce. take a look at american tower, one of the best performing stock on the s&p 500. crown castle also moving higher, up two bucks. back to you. >> thank you very much. the dow is currently just 6% off its all-time highs. despite this year's rally, dow stocks have been trading at

historically low priced to earnings ratio. does that mean it's time to buy? mary thompson has that story for us right now. >> you know, by one key measure blue chip stocks look cheap suggesting it could be a buying opportunity. they look cheap only if earnings continue to rise. right now fourth quarter estimates are coming down and third quarter profits are forecast to fall. keep that in mind. on a forward to price earnings basis the dow is cheaper than it was in 2007, trading at 11.6 times 2013 earnings compared to 16.1 times 2007 earnings and 2007. within the dow, 13 of the dow 30 are trading below the index's forward p/e ratio. the five cheapest, hewlett-packard, 3.9 times next year's earnings. earnings look questionable as they struggle to reinvent themselves. jpmorgan chase and caterpillar trading at over 8 times next year's earnings with chevron and cisco systems trading just over

nine times next year's estimated profits. there is another reason they look attractive. all of their dividend yields right now, at or above the dow's yield of 2.5%. >> those dividend yields are very, very important these days. thank you, mary. if stocks are so cheap right now, why aren't small investors buying? >> that's the question. with us brian bellski, debora borchard and bob pisani. thank you for joining us. cheap or not cheap, deborah, where do you sit on the valuations? >> they're definitely cheap. i mean, let's look back at 25 years ago this week, 25 years ago we had the october 19th crash. at that time there was so much fear and people sold ought their positions, even at a loss. i think we have that fear happening in the market today. >> really? the fear indicator is a year low right now. >> i know. the vix is low -- >> there's some xla scomplacenc

>> they're all backing out. it's terrible. they're all way and putting their money in bond. >> it's crazy. >> the little guys -- you're seeing outflows from mutual funds. institutions are in there trading. >> the smart money. they're buying. >> is it the smart money, brian? where do you sit on this, in terms of putting money to work in equities before the election, yea or nay? >> no. we would say no. our models continue to suggest that the s&p 500's target for 2012 is 1425. it's apple to other thanes looking although institutions. the institution has chased the market up here. from a longer term secular basis we still favor equities over bonds. the problem is the market's gotten ahead of itself here. there's no job growth. earnings are anemic this quarter but longer term investors can, will and should get used to expansion in this type of

environment. for the last 10 or 12 years you've seen multiple compression. >> and bob -- >> that's a great point. >> bob, you've been looking at whether third quarter earnings will be the trough for the period of time. >> that's right. brian, i want your thoughts on this. the way i see it right now, i know everybody's talking about negative earnings growth for q3. i bet when it's tallied up, earnings will be positive for q3. i also bet it will be the trough for the -- for earnings right now. i don't know how you feel about that, but i think people are overreacting on the negative side to the earnings situation. >> you are absolutely correct. in fact, last weekend our weekly piece we talked about earnings quality matters most. quality earnings from cash flow derived from net income is increasing. right now the number is negative 1.4%. we bet like you do the number will be slightly positive, around 1.25%. estimate revisions for the current quarter have been ak, ess ively negative. if you think of the tone of corporate america during the earnings period, no cfo or ceo

is giving visibility not only on earnings but especially employment. everyone is very conservative heading into the election. that's why we think the market has seen the highs for the year. we get a pullback, an election rally because everyone is sick of the election talk and then we're off to the races in 2013. >> does it loosen up after the election, do you think? do you actually think we get the clarity of knowing who's in the white house you see business managers put money to work in hiring? >> i don't think it's going to be businesses are hiring except if we get a certain person winning the white house, then i think we'll see -- >> who, romney? >> you said that, not me. but -- >> you said a certain person. what are you trying to say? speak english. what are you trying to say? >> the certain person would be romney because romney has been very clear in terms of what his plan is for small businesses, in terms of tax breaks. as you know small businesses are the part of the economy that builds jobs. the biggest problem with small

businesses right now they don't know their cost structure heading into the next three to five years. near term you've seen frozen out of job growth. >> what's going to bring the little guy into this market and what should they be buying n your view? >> you feel like you want a magazine to come out and say, dow's reaching all-time high because -- >> you want that contrary indicator. >> exactly. run in and go, i missed, it i missed, it now have i to get in. we see that time and time again. i think we've got to start to see positive headlines of here is where the market is and then they'll miss it and then come running back. >> if the little guy is leaving the market, who owns the stock market? high frequency traders don't buy stock. they sell at the end of the day. >> just this morning i was getting on the train and i talked to a woman that manages money at newberg management. i said, how's business? she said, oh my goodness, business is so good. that's the high net worth

investor. she said it's all referral business. it's all people that are being referred to them. they are not doing any marketing whatsoever. >> good institution. >> getting tons of business. >> somebody's doubling down. somebody's pulling out, somebody else is going in, right? >> that's how a market works, robert. >> somebody buys, somebody sells. >> i knew i could rely on you. >> deb, i'll see you later. as we head to the close, 13 minutes left in the trading session. the dow near the highs of the session near 95. >> if this guy can jump from the edge of space and survive, can't our nation certainly survive falling off the fiscal cliff? we have our thoughts coming up. >> the question is, can we land on both feet like he did? also ahead, this summer's historic drought has forced many restaurants to raise prices and cut portion sizes. will that force consumers to cut back on restaurant trips?

worry over the fiscal cliff has been dominating economic

conversations across the globe as we near the end of the year and it's still not solved. >> it really is not. this weekend i spoke with imf managing director christine lagarde. she's focused on that uncertainty created by the looming fiscal cliff. listen to this. >> the imf has been warning for can quite a while about the uncertainty risk associated with the fiscal cliff and the debt ceiling. both of them. this uncertainty is going to increase as we get closer to year end. it is a concern. it's a concern because, you know, investors, households, people who want to buy a house, make new investment, higher people, would like to know what the environment is going to be like and what the fiscal deficit momentum and process will be in 2013. >> she's being very diplomatic about it, typically. just a few hours ago citigroup ceo issued a similar warnings on the company's analyst call. he said this, we're coating, in

the u.s. there are promising signs morrow bust economic growth is in reach, assuming the resolution of the fiscal cliff. lack of a resolution of the situation would be highly disruptive. >> while the fiscal cliff debate is fueling worries, consumer confidence is surging. surged to the highest level since before the recession. a survey by rbc say 14% of consumers changed their spending habits to prepare for the fiscal cliff. will this disconnect help or hurt us? >> i think consumer confidence did because of the stock market, all-time high. it runs in tandem with the stock market. speaking of which, maybe derek jeter can save us from the fiscal cliff, or not. the star shortstop -- >> i'd say or not. >> he broke his ankle in saturday night's game against the tirgz. last night the yankees lost to detroit in their first postseason game without derek jeter since october of 1995.

>> so, we went and looked at the markets and analyzed if. check out the markets since jeter came on the scene for the new york yankees. the s&p 500 is up better than 140% since the yankees' last jeter-less postseason. dow up 180% since then. the nasdaq, it's all rallied up, almost 200% since jeter hit the postseason scene 17 years ago. what does that tell you, bill? >> it tells me if i'm a tigers fan i want to know what the market did since miguel cabrera came on the scene. jeter is undergoing tests to see if surgery is needed. definitely out of the playoff. probably three months of rehab. he feels he'll be ready for next season. it's wait for next season for derek jeter. when we come back, we're coming back with the closing countdown as the market hits the highs for the session right now. >> up 101 points on the dow jones industrial average. we're looking at money coming into this market as we approach the final stretch. after the bell, any meaningful

spending and tax cuts congress can agree on? glenn hubbard will weigh in. is he in the running to succeed as fed chief in mitt romney win the general election? ♪

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that's right, bill. one of the big movers in the tech land, ibm, one of the big components of this rally we're seeing. since july 12th ibm has contributed about 200 points to the dow's rally. steve nicholas today reiterating buy rating on shares of the big blue, raising price target to 243 bucks a share. take a look at ibm getting a pop, up about 0.6%. bill? >> all right, thank you very much.

heading toward the close. thought it would be a good day to look at moving averages, those trend lines because we've been hovering around them on many key sectors. now, these are the sectors today, but we'll look at first. health care leading the way, followed by financials, consumer discretionary, materials, industrials. the dow industrial average for the last year is sitting at its 50-day moving average. take my word for it. there it is. now, the longer the moving average, the longer the trend line. this is 50-day, not mow men to us. the ten-year yield, that's sitting near the 100 -day moving average, right there, which would suggest -- it broke through recently, maybe it's testing it, maybe yields are headed higher. oil is at a 100-day moving average. the price of crude oil sitting right on that number. in fact, it bounced off it earlier this session and now we're moving higher today. gold has been coming lower. we're coming back down to the 50-day moving average today. it's kind of sitting right

there. we'll see if that can break through that once again. we saw the sectors already. peter costa, would you imagine this market is kind of bouncing here? i mean, we got a little oversold in the last week. >> i felt it was oversold 37 i think people overreacted to some relatively benign to negative earnings, so i think that people are going to start getting a little more involved in looking at -- you know, we have pretty big names coming out this week. google, intel, ibm. i think they're setting themselves up for that. >> we knew we would get volatility because of the earnings. >> absolutely. >> telecom, everybody's favorite, and they had their worst week last week in 3 1/2 years. and this week -- today they are the laggard as well. they're so popular for the dividend play right now. >> right. but then we also have that dividend worry because we don't know what's going to happen with dividends and the taxes at the end of the year. so, it's the -- >> maybe they're selling because they're anticipating a change in tax -- >> those are the stocks you want to be in. >> thank you, both. short and sweet