>> i hate to agree with herb greenberg, occidental. >> there's two for mandy's mavericks. we'll find out the real winner from our cnbc's stock drafts, the monday after the super bowl, 2014. thank you very much for the coin toss as well, sir. we'll take balloons and hand them out later. >> thanks, everybody, thanks for playing along at home. it's all for money. the "closing bell" is next. hi, everybody. happy friday. we enter the final stretch for the week. welcome to the "closing bell." i'm maria bartiromo atç the ne york stock exchange. the s&p's five-day winning streak in jeopardy. >> i'm bill griffeth. happy friday. stocks are mixed as we enter this final hour, but the major averages are on track overall. we'll recap that for you, coming up. >> one name bucking the trend today, jcpenney. take a look at this stock, sharply higher today after george soros, as reported last

night on the "closing bell" took a big stake in the retailer. but is that enough to turn down this beaten down name for good? >> what is george looking at right now? we'll look at that. also, we'll look at the top five so-called dividend sinners. these are companies that refuse to pay dividends even though they probably should, and maria, you won't believe some of the names on this list. >> and why not use some of the cash. >> give the cash to shareholders. >> let's check the markets and where they stand right now. the dow jones industrial average, fractionally moving today, up 21 points on the session. a fractional move at 14,723. nonetheless, it's a gainer again. the market is mixed. nasdaq under selling pressure, down seven points there, a quarter of a percent lower. and this is basically the best of the day. s&p 500, also weaker. very much flat on the day, back and forth, but we're negative right here on the standard & poor's. have been, actually, all day. bob pisani, let's talk stocks here. what's driving this market? >> the important thing is, even though we're side waist in the

major indices, sectors are moving. airlines, finally, good heavens, thank heavens, congress passed a bill that willç keep the faa a traffic controllers working. yes, you can see the stock's on the upside. delta u.s. air has had great earnings overall. but there's been a lot of problems. you guys know the issues with revenues have been terrible so far this quarter. it's a major issue. look at goodyear tire. they beat on the bottom line, revenues were light, and again europe has been a mess for them and this is one of the main reasons companies are coming in light on revenues. the european side of things aren't working very well. speaking of the light revenues, perk and elmer, big diagnostic equipment maker all over the world, same problem, europe dragged them down. revenues much weaker than anticipated. in lieu of the weak revenues, a lot of people are deciding, hey, let's just hike the dividend. we've had all sorts of dividend hikes. kellogg raised it today, rock 10 raised.

altria, a whole bunch have raised their dividends this week. that's been a major trend in light of the weak revenues. take a look at the two shining bright spots of the u.s. kmi. the first one is the home builders. great numbers from every one of these companies this week. this is one week. look at the moves off of these stocks in one week. the other bright spot, aerospace. i'm talking about commercial aerospace. we know about concerns on the defense side. commercial aerospace, businesses, all of these guys reported excellent numbers and look at those moves nor the upside. very choppy, bill and maria. very choppy week here. got to)look company by company and sector by sector. >> bob, thank you. let's talk about today's action in our "closing bell" exchange with aaron gibbs from s&p capital iq, leo telly from high towers kelly wealth management, ken mahoney from mahoney asset management and our own rick santelli there at the cme. aaron gibbs, we're halfway through the reporting season on earnings, how are we doing so far? >> so far, so good.

it's looking really good. we started the quarter at about half percent growth, now we're up to about 3.5% growth. looks like we're going to hit that usual peak of 4% to 5% above analysts' estimates. so we're looking nice. the downside is all this growth that we're getting if q1, they're taking it away from the remainder of the year and the annual numbers are still holding steady. >> so we're front loading the year? >> that's what the analysts are tracking right now. they're really ratcheting down the second half of the analysts. >> i thought it was the opposite. i thought we were expecting more growth in the fourth quarter. >> we are, but the first quarter coming in, those have come pretty equally out of q2, 3, and 4 and we're still at 7% growth for the year. >> leo kelly, what do you want to do in terms of allocating capital? >> i think it's a time right now to exercise caution. the market has moved significantly in a short period of time. long-term we're bullish.

i don't think you could come out of equity long bonds. they're just trouble waiting to happen. so what do you do? alternative investments, there are liquid alternative investments that clients can get into. there's a scarcity of capital in that market. i think now's the time to exercise caution, despite the fed and the ecb and the bank of japan and every other central bank in the world just throwing capital at this market. sell when it's high, buy when it's low, take caution in the middle. >> okay, so you're cautious. ken mahoney, though, you're sticking with the good old-fashioned high yield stocks that everybody loves. >> it seems to be working at the moment. i noticed a character change last week, with the dow down 260 points on monday. tuesday, bounced a little bit and down again on wednesday. and i think the culprit is earnings. i mean, last quarter to this quarter, s&p earnings were up 1.5% and we have stocks up 10%. so it's got to be resolved and i think there's some kind of bubble between the two. it's either earnings are going to start accelerating to meet and support those stock prices

or stock prices will come down and meet those earnings. >> i think we're pretty fairly valued. right now we're trading at 14 times forward earnings. that's fairly depressed off historical levels. we could see a little bit more depreciation, but i would like to see the earnings come through and i don't think that's going to come anytime soon until we get rid of this wall of worry. and finally, when we see the annual estimates come out, that's -- >> well, 14 times and totally reasonable. >> çexactly. >> santelli, jump in here. what are you seeing? what's the action looking like today in chicago? >> well, you know, 166 yield. i know our first guest said, you know, stay away from bonds. but it wasn't that long ago we were at 2%. it's been a recent rally. the lowest yield closed since december 11th. and next week's a big week. adp jobs report both hovering in the 150s, but we get the may

refunding quarterly announcement on wednesday the 1st, by the treasury, and look for them to brag up big time, big revenue receipts, because we had the tax increase. now, granted, when you increase tax, a lot of times, the first year cycle is big and then it moderates, but that will affect, it's already affected the amount of bills that are going to be auctioned. it's lower and we'll see if there's any guidance by the treasury for products like floating rate notes that they've talked about. so you want to pay attention on wednesday and for the fed and jobs reports two of them next week. >> you also have the european central bank meeting. are you expecting them to cut rates? >> i'm going to go against the grain. i think merkel with her two-speed economy in europe, when she talked yesterday about, if it was up to germany alone, we have to raise rates versus what's going in southern europe, i think it's going to be talked about, but i don't think you're going the see it in practice. >> leo, if we don't get a rate cut from europe next week, what

do you think our markets çdo? >> i think our markets right now are hinging on what the fed is doing. listen, revenues are going down. we're seeing economic data starting to slow in terms of momentum, and i think gold is telling us something. gold is telling us that everything is a little bit weaker than maybe expectations are. so i don't know that the ecb, other than one-day trade, is going to affect our markets. right now, it's about, can we turn this thing around, get revenues going again. because the earnings cuts can only go so far. look at gold, i think it's telling you to take caution. long-term, buy equity. >> did the gdp report tell us anything today? i know it was below expectations at 2.5%. however, it's much better than what we saw last time, which was 0.4%. >> it tells us that we're better than a crisis. it tells us we're coming out of maybe a short-term interim pullback, but we're not there yet. and i think we have to all put this in perspective as to where the market is today.

we're 130% above the bottom. >> next week, rick said next week, it's a very busy week with economic data. but let's not discount the sell in may and goaway. for many years, professionals spoke about sell in may and go away. but the last couple of years, it really worked. european debt woes came to fruition, and now people on main street are talked about it. so as we turn the calendars over next week, let's not discount the sell in may, go away, as some people may get a little bit cautious about thisç and be li a kind of collective, self-fulfilling prophesy we may have. >> you know, on this gdp report, i would like to weigh in a bit. i know 2.5 is no 3.2, but i'll tell you what, i still think even at 2.5, that this number makes the first quarter appear much healthier than it is. i think you have to look at the weakness overexaggerating the fourth quarter, the growth in the first quarter overkpa overexaggerated and look somewhere in the middle. when we get done with this quarter, we'll be closer to 1.7

than 2.2 than we have been in the past. >> and the fed can only double its balance sheet so many times. >> that's true. you still like financials, yes? >> yes. >> why? rates have so low right now, it's tough to make a buck in that industry. >> one of the reasons is, one, they're just trading at much lower evaluations. and we've seen the biggest growth and biggest revisions both for the q1 year coming out of financials. we can the expectations are for them. and we also still really like the reits. there are kind of, not always necessarily single-family homes, but multi-family homes, the rentals. >> the rental market is really hot right now. >> those are really pushing really well. one of our favorites avalon bay, and really one of the areas we're looking at. >> do you think we're going to see a lot of regulation change the banking sector, though? are these banks are going to look the way they looked today in five years? >> i doubt -- >> three years? >> five years is tough. you know, i'm sure there will be regulation changes, butç not b ones going forward. >> too big to fail?

you don't think they'll sell assets. all right. thanks, everybody. >> yeah, thank you, guys. have a good weekend. we're in the final stretch. picking up some steam as we approach the close. about 50 minutes left before the closing bell sounds for the week and a market that is up about 20 points. >> the bias is to the upside here. jcpenney, one of the best performer on wall street after george soros took that big stake. but should you follow his lead? we'll talk to one analyst who is cautious on this stock despite the enthusiasm over the soros stake. >> and we're grilling up a debate on mcdonald's and burger king. find out which stock looks better right now, more appetizing, bill. >> and later, u.s. army chief of staff, general ray odierno will be telling us how across-the-board budget cuts are affecting the military and the ability to keep our nation safe. that's still to come on "closing bell." we went out and asked people a simple question:

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jcpenney shares soared today, up almost 12.5% right now after word that billionaire investor george soros took a nearly 8% stake in the retailer. kate kelly has more on soros'

stunning investment. kate? >> bill, we learned late yesterday that soros had become what lacks to be jcpenney's fourth biggest investor based on the filings we have now, two notches down from well-known hedge fund manager, bill ackman, whose offices is in the very same manhattan high-rise that he works in. that makes:e somewhat rare believers in the embattled retailer, whose shares year, at least prior to the news of the soros investment yesterday, which has now given it quite a boost. soros filed notice of his jcpenney stake as a passive investor, so he won't be using his 8% position to advocate for management or business changes. penn penny has already seen its share of those this year. they have forced out a ceo, reported a multi-decade low point for sales, and faced down a competitor in court over sales of martha stewart products. now with a new executive and a fresh new line of clothing, they're looking for a turnaround. they have also hired the

blackstone group to help seek financial partners and it looks as though based on news from david faber just now they may have secured financing through goldman sachs. >> things are looking up, that's for sure. >> they really are. kate, stay with us. i want to bring in our next guest to talk more about this, darrell jones of hedge i risk management is cautious on jcpenney yet enthusiastic about george soros. thanks so much for joining us. obviously, george soros taking a big stake in this company sent the shares up. >> absolutely. i think a big part is probably chart covering. the reality is when a very savvy investor like soros or soros fund management comes in, that's a really positive sign. and if you look at jcpenney, the setup, in limited downside, a lot of earnings power going out to 2017. but you've got to get through the next couple of quarters and years. last quarter, same-store sales

down 30% and that uses up a lot of cash. our perspective is you want to be nowhere on this one. you want to wait to see if fundamentals start to turn. but i think soros is thinking there's real estate protection on the downside. >> you were short the stock for a time. you covered then? >> we don't take positions, we recommend positions, but we were telling our clients when johnson originally got in and ackman originally got in that we didn't think the turnaround was going to be as quick as what they thought and that's actually what turned out, so we were recommending being short two years ago. they used a lot more cash flow than anybody expected to kind of implement this turnaround. they kind of lost a lot of their customers, and as a result, we've just seen this thing drop dramatically. >> kate, what do you think? what does soros know that we don't? maybe it's this real estate leverage that you're bringing up. that's an important point. >> that may very well be a part of it. we know he knows bill ackman, they're in the same office building. ackman has been jcpenney's biggest champion, and he's also

taken a beaten on his large investment as the stock has taken a beating today. but he's, i'm sure, at every opportunity, has talked up this name to george soros and his team. and soros fund management manages about $25ç million as family office. they're not technically a hedge fund anymore with lots of outside investors. they can take a risk that a normal hedge fund can't take because they don't have to keep that external crowd as happy. it's almost the equivalent of trading for your p.a. as opposed to for public investors. >> and they're letting the world know this is a passi iive investment, unlike bill ackman, who's been very activist in this whole thing. so darrell, i guess george soros would be the kind of guy who looks longer term, expecting them to get through some of the difficulties and headwinds you're expecting them to have. >> i think that's exactly right. also to kate's point, this is a $250 million position. that's 1% of $25 billion, which is what their family office manages. it's a small position. they have a really long time horizon. and if they believe in the real estate downside, then lthere's

lot of upside going out four or five years. >> and i think this is really a vote of confidence because of the passive nature of it. if soros was going to get in there anda agitate for further change, that might tell us there was more volatility and tumult in the stock. but you've got this really well-known investor getting into this with no strings attached. >> who else is in that office building? >> i need to double check that. i was just looking at it, 7th avenue around 57th street. i'm sure it's got an interesting tenant list. we'll have to look. >> who's the next ceo? nobody expects mikeç ullman to stick around this time. he's there as a placeholder to stabilize things, but then what? is that the key to deciding when to invest again? >> i think it probably is. the first key is to see the business stabilize. we're not going to get any data points on that until the end of april when they report earnings again. but, yeah, if we find a good, more traditional retail ceo, maybe somebody out of walmart,

somebody that can really turn this into the retail company that it once was, i think that's a real positive. unfortunately, ron johnson tried to do too much in too short a time period. >> this is a classic, specific stock company story. >> right. >> we're not really talking about the overall environment and the consumer part of this. this is a specific misstep. >> this is what they call alpha, one way or the other. >> thanks, darrell. >> kate, thanks. >> heading towards the close, 30 minutes left in the trading session here, up 29 points. finishing off a positive week for the dow, but it's the only positive indicator right now. the s&p and nasdaq still lower. >> and up next, there are some very big companies that just refuse to pay dividends and they may be should be paying dividends given their cash balance. and also, the burger battles will heating up again. burger king's earnings more doubled in the first quarter. find out if bk can dethrone mcdonald's as the king of the burger stock world.

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well, the fast food fight has two heavyweights throwing big product punches. shares of burger king up 1% today after the company reported higher earnings. meanwhile, mcdonnellalcdonald's told cnbc atç the plans for th company's future. >> last year, i was not satisfied and many people heard about that.

i thought that we were not addressing the needs of consumers and we weren't bringing energy to the market place. that's our report card, that's my report card. but this year, we won't get the same twice in a row. >> i know you'll be excited to say that, mr. thompson did, that they'll serve breakfast all day. you can get your egg mcmuffin anytime of day. >> perfect. >> which stock is a better buy right now? it's battle of the fast food giants in today's talking numbers. on the technical side, it's ariwald. on the fundament aal side, erin tanner. you like mcdonald's over burger king? >> i'm going with big macs over whoppers. i see a lot of underlying demand for the shares of mcdonald's. let's look at the chart. going back to 2012, mcdonald's has been this big sideways trading range. it's been capped by 102

resistance. that was its january '12 peak and on the downside, $84. that's what it's rallied from since november. since november, we've had this big rally back to the upper end of this trading range. and what i'm encouraged about, there's been very good volume on this rally. on-balance volume metrics making new highs. i think it's on inevitable we're going to breaz out to new highs. i'm buying it on weakness. i like $96 to $98. i think that's your near-term support. that's where you want to buy these shares at. >> enis, on the fundamental side, is it mickey d.'s or bk? >> i don't like either of these names. i think it's anything but inevitable that mcdonald's breaks out to new highs. in fact, both of these names reported relatively weak comp sales over the last quarter. north america, specifically, was weak. but burger king's seen some benefit from moving from company-owned stores to franchisinging, something that was a benefit in this quarter. but i think going forward, you

really need sales and revenues to increase. and i think the space overall is very competitive. i don't like either name here. >> yeah, i hear the point enis is making. and i think for the market as a whole, it is getting very top heavy here. and we put a bearish note out on the market this week. we think it's going to be led lower by a lot of these names, but mcdonald's, low volatility stock, 3% dividend. i think this is the type of stock that does a lot better. i think this is your bioweakness name. >> it might be an outperformer on a relative basis in the space, but i think overall these names are not a buy. >> all right. we've done it. thank you, both. thanks for joining us today. appreciate your thoughts. please tell me that you've had an egg mcmuffin before.ç >> i guess i have, years ago. >> you just can't remember? >> many years ago. yeah. all right,we we're in the final stretch, 30 minutes before the closing of the day.

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welcome back president burger battles we just talked about to another hot zone, the streaming showdown. netflix, amazon, coinstar, hulu, and that's just some of the contenders in the game to stream digital content to consumers, when they want it, where they want it. it's not just the shows you know, but the race for the best original content. >> take amazon, which saw a dip in its stock today on the heels of yesterday's earnings report. for the past week, amazon instant video has been streaming 14 pilots for free viewing and essentially testing their audience on what would work. and later this year, after the votes are in, amazon originals will then pickç up shows to

series which will cost millions to produce. so, who's going to come out ahead? and is this a business model that's actually going to pay off? joining us with their thoughts, edward williams of bmo capital markets and nicholas carlson of business insider. good to see you both. welcome to the program. edward, what do you think? you've got that and you have "house of cards," which has been a big winner for netflix, but an expensive winner at the same time, right? >> it has. but i think the reality is that people are really going to change the way that they're watching video content. and if you look at the over-the-top distribution of video content that netflix is doing and amazon is doing and hulu is doing, it's a far better experience. i think you're going to see that in order to sustain the systems, you also need to see them put more original programming out there. so what amazon is doing and what netflix has done with "house of cards," i think we'll see much more of and much more capital being committed to it and i think we'll see a fair amount of success coming from it. >> can amazon do it? you point out that amazon is not

known for streaming businesses. do you think they'll be able to catch up? >> absolutely, they can catch up. they have a lot of money to spend on this. but if you want to understand this, google, reid hastings, 11-page manifesto. he just wrote this big pdf about where this is all going and what he says is a world in which we don't have cable channels anymore, we have apps, apps on our tvs, apps on our tablets, apps on our phones and screens everywhere. and in some very popular business modelç right now, we'r seeing lots of people get into. and the reason why is that content is sort of, it's platform agnostic. you know, if android suddenly becomes the most popular tablet system, content works on android just as well as it works on ios. so it's a smart, safe way to sort of invest in something, content creation, and then see it proliferate all through all sorts of different platforms. so that means it's going to be popular and margins are going to compress for sure, because -- >> competition will do that to

you. my kids have already bought into this business model. i mean, they live for netflix or hulu. they have no idea what channel i'm on, you know what i mean? >> absolutely. it's all about the content and finding it and you can find it on all your devices. >> but, ed, we've been hearing about the demise of broadcast television for 20 years now. it's still around, it's still profitable. so is reid hastings just a little ahead of himself here? >> i think he might be a little ahead of i'm sorry, but i think the reality is, there certainly is a role for broadcast content and there's certainly content that will be better off in a linear format. but the you're looking at what netflix has looking at the consumption of the serial shows and some movies, it's a far better experience, not only you can watch itç when you want to, bu wherever you want to and on whatever device you want to. >> who gets impacted the most here, nick?

for example, the major networks and the media companies, the traditional media companies, are they getting hurt significantly by netflix's emergence and the way that they are taking this market share? >> well, two things i want to say, real quick, is that cable subscriptions are not down. people are subscribing more to netflix and still subscribing to cable and even reid hastings points that out. no, i don't think that a lot of these traditional players are going to lose out for a while. i think that hbo, for example, is sort of leading the way actually in what netflix is doing. hbo go is a great app. and hbo spends a lot of money on the original programming, just like netflix does. and reid hastings points out hbo is someone that he admires. also, espn. so people that get content is something you invest in, it attracts subscribers, so you can annuitize the cost over many years, people see that has a smart business. and eventually, if so many people get into it, you have

people bidding a lot for the next "game of thrones" and it gets a lot more expensive. >> let's headache this meaningful for investors who are watching who want to make money off of this video streaming trend that we're watching. ed, who do you like? >> i think both amazon and netflix are pretty expensive stocks. if i'd pick one of them, i'd pick netflix, because it is a pure play on the streamingç aspects. >> okay, nick? >> i'll tell you what brand will be around for a long time, and i think that's netflix. they've got a great way of identifying which -- the big threat here is that netflix makes a bet on a show that no one watches and it's very expensive. but they've got a cool way of figuring out what to make. they looked at shows that kevin spacey and movies that he was in and that's why they casted him in "house of cards." so i think that netflix will be smart about the kind of shows that they produce and that will make them a brand and company around that's around for a long time and successful in this business. whether that means their stock is priced right, right now, i'm not sure. >> it certainly has been successful in the last year. >> absolutely.

>> thank you, both. appreciate your thoughts. >> thank you for having me on. >> you bet. >> heading towards the close, 25 minutes left in the trading session, with the dow still up 40 points. bias, we are told, still slightly to the upside. >> but we have weakness for the broader market, s&p, as well as nasdaq. next week is going to be a big week. josh lipton will break down all the reports you need to be watching more. >> and manti te'o once considered a top ten pick before his fake girlfriend hoax is the nfl's draft's bigger loser after teams passed on him for the first round. we'll find out how much that's going to affect his bank account coming up later on the "closing bell." stay tuned.

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investors getting barraged with earnings this week. the earnings parade remains in high gear on monday. >> josh lipton is recapping the week's big winners and losers and looking ahead to what's on tap next week.ç over to you, josh. >> well, a wave of earnings reports this week. some pleased, some did not. let's get a roundup. we'll start with the winners. first up, netflix, you guys were just talking about this one. the movie streaming service telling us they added more than 2 million u.s. subscribers last quarter. that stock now up some 130%,

just this year. d.r. horton, another big gainer. the home builder nearly tripling its quarterly profits, selling more homes at higher prices. the ceo says he expects the second half of the year to be even better than the first. and check out coach, the luxury handbag maker reporting higher than expected quarterly sales. north america same-store sales rising 1%, reversing a 2% drop in the priority holiday quarter. as for those in the red, how about safeway, the supermarket operator. earnings met expectations, but sales, volumes, trends disappointed. identical store sales, x fuel, 1.5%, slipping below its previous forecast. clovidian, the surgical sales maker sales grew. but that was moreau what the street wanted to see. procter & gamble also taking a tumble this week. the consumer products company, investors not happy with its organic sales growth and earnings guidance. and looking ahead to next week,

some big names we'll be watching out for on monday democrat newmont mining, buffalo wild wings, and herbalife. >> you know what's going on, we've seen a lot about the disappointing revenue numbers and the lower guidance for a lot of key companies and industries. i think we're going to have to get used to that, a slower growth rate, because we've been deleveraging for the last five years since the financial crisis. that's why i think companies are not hiring as much, they've got lower rench, consumers are not spending as much because of this deleveraging. >> and we'll probably see more deleveraging, particularly in sectors like the banking sector or health care sector, because we've got the regulatory components of that as well. i was very surprised as the to what erin said to us, earnings will ramp up the second half of the year. in fact, i think i agree with what you're saying, and that is that they're going to slow down toward the end of the year. >> i see that, but i think the

longer term picture is we're not going to be as turbo charged on earnings as we have been in the past, simply because we're talking about a smaller debt level. which is a good thing, but it's not great for the economy. we just have to get used to it here. >> we'll see if we actually see some of this cash on balance sheets actually put to work through dividends, through deals. you can't sit on all that cash forever. >> get those dividend sinners going. >> we're in the final stretch of trading here. 15 minutes before the closing bell sounds. a mixed market up today. up 36 on the dow industrials. >> our resident bear, jeff cox back with us, sounding the alarm on today's weaker than expected gdp report for the first quarter.ç find out why he is so concerned, and why is he bearish, anyway? what's up with that, jeff? >> also, black rock ceo larry fink told me recently, he's turning bullish on mexico. >> in terms of labor costs, mexico is now competitive to china for manufacturing. >> we're taking a look at mexico here. we've been looking at it on the "closing bell." we want to find out how you can

cash in on our neighbor to the south coming up on "closing bell," stay with us. oh, boy. [ groans ] ♪ ♪ [ engine revs ] ♪

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with about 15 minutes left in the trading day, the market's run higher may still be in tact, but our jeff cox sees some red flags out there that he says you need to pay attention to. we'll ask him what those are. he joins us with devon darth. >> jeff, what are you concerned about? tell us, first, the red flags that you're looking at. >> good afternoon, maria. look, this gdp report today, i had said three weeks ago, and you can look it up on twitter, i said, no way this gdp report today has a three handle on it. we came in at 2.5. look, you could see this coming. the drops in durable good demands, the drops in manufacturing, the weak march payrolls report. we closed out the first quarter of the week, we're going into the second quarter even weaker. now, you guys introduced me before as thor resident bear. i'd prefer to think of myself as the resident realist. >> of course you do. >> now, here's why.ç

the big question is, today, what does the market think? the market doesn't care what the economic reports say because of two things. one thing is something we talked about a lot, the fed money. the other thing is that i've heard a narrative is that there's a feeling in the market that washington is going to relent and settle this sequester mess. i think that's a ridiculous thought. i don't think it's going to happen. >> they're doing it cut by cut. >> so what does all this mean in the face of the federal reserve, okay? okay, so we got through the end of the world at the end of 2012, because we were all worried about falling off the cliff and then we were all worried about something else. so there have been these concerns in the market before, jeff. this is nothing new. >> and i think it's almost a contrary psychology-driven rally, that basically the more we get these talks where guys like me come on and say, look out for the correction, it's driving more people toward the

market. but last week, we saw some money come out of mutual funds for the first time. >> but it went into etfs. it went into etfs. >> let me bring in devon darth into this conversation. there's always another side of the trade there. >> i want to hear what david has to say. >> i don't think people have been listening to jeff. jeff, as you know, the bullish/bearish right now, 28% bulls/39% bears. there have been people that have taken these -- april'sç been a sloppy month, we know that. consumer confidence, the durable goods orders, the jobs orders at the beginning of the month on april 5th were only 88,000. we're looking for 110,000 next month. it's not much to write home about. the profit picture has been okay. not gangbusters. they lowered the bar. they've exceeded that lowered bar. so you're looking at that, but housing, look at the house prices, up 12%, the median home price. housing still there. you've got this long-term story

beginning, bill, maria, which is the energy in the united states. >> this is a game changer. >> maria, no question. game changer. one of the big ones that caused the dollar to go up for six years was volcker raising the interest rates. that's the first one. the second one was reagan and the strong dollar mantra that he was touting. >> you think it's going to happen again now, don't you? >> we think it's in the early innings. and that money pours in here from all over the world. and maria, to your point about etfs, as you know, our japa japan-hedged equity, that was up 11% this month. it's up 33% now. >> and you're recommending it for the whole time. >> maria, we get some right once in a while, get a lot wrong once in a while. maria, mass limited partnerships, health care, consumer staples, okay? you want to be selective. jeff may be right, but there's places to make money here. >> i think morgan stanley's best equity market isç japan. that's your pick, in terms of

what equity markets -- >> no question about it. that's our biggest overweight -- >> and you've been doing it, i know that. let me ask you this, jeff, because i have one more "but" to throw at you, okay? corporate cash on balance sheets. so i'm looking at an e-mail from rich also go into fund

flows. i do think there is still a level of healthy skepticism out there, that, yes, can push equity gains higher, but i do think the market is telling you something that to look out, if we were going to see a recovery, it's going to be a very uneven recovery and you're not intelligent and put your money into good places and not chase crazy risk, you can really get your head handed to you. >> this is going to be the low quarter, bill and maria, on the profit comparisons, we think. so we're looking for a pickup in profits for the second half. >> we were just talking about that. >> and we're also looking, you've got to see china and the emerging marks begin to kick in. they've had a hard time of it, as jeff has hinted at. china's down 5%. korea's down 8%. they're both being hurt by japan cheapening their yen.

very important. a week ago at the world bank and international monetary fund conference in washington, we were expecting to criticize japan for weakening its yen so strongly from 85 up to 99. but, no, they endorsed japan, because they need a strong number two, number three economy. so that's a very, very good thing. but you want to see china begin to kick in second half here, for this bull market to continue. >> very good. >> we've got to go, jeff. >> you want to go near what? >> any of the bric nations. i would stay away from all of them. >> that's where the growth in the world is, though. >> yet another area to talk about another time. >> buy mexico. buy mexico! >> mexico. >> we're talking about mexico later as well. >> we love mexico. we've been talking about that for a while. we have breaking news and i want to get to it right now. kayla tausche, over to you. >> much has been devoted to the controversy surrounding what was expected to be the nomination of mark lasry, chairmanç and ceo

capital to ambassador of france. the white house was set to be driving over lastry's investment in france in particular. the white house was said to ask lasry to invest his majority stake in avenue which manages $11.5 billion. furthermore, sources say the white house was requiring the firm so sell all of its positions in france, which i'm told value roughly $400 million, regardless of their current value. that, stamp, interestingly, seems to be the same as past white house administrations. they have allowed some ambassadors to put their assets in a blind trust, that way they wouldn't be forced to sell them in a fire sale as long as they didn't control the investments. as detailed by the u.s. post, the allegations between lasry and a poker ring prove to be the last straw in negotiations that it already reached a standstill. i'm told by sources lasry has not been contacted by the fbi nor associated with the crime committed and they had already reached a standstill over this

very strict policy regarding avenue's investments in france. maria and bill? >> kayla, thank you so much. >> kayla tausche with the latest there. >> we're coming back with the closing countdown. stephanie link, is so great. she always has her finger on the pulse in this market. she says it's time for investors to rotate money into one sector she thinks looks very cheap right now. she'll tell us what up on the "closing bell." you're watching the "closing bell" on cnbc, first in business worldwide. but i wondered what a customer thought? describe the first time you met. you brought the flex in...

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three minutesç left as we head towards the close for the week. it's been a busy week for earnings. jump in any time here. this is the s&p for the week, with all the match nations going on with the earnings coming out and everything, still up 1.8% for the week. so a pretty good gain. the best performer for the week, maria, the s&p. netflix, still, we just talked about the video streaming there, that stock, this week, up 32%. incredible. worst performer in the s&p and the nasdaq 100, edward life sciences, also an earnings place, it's down 22%. can you guess when the earnings came out? that was earlier this week.

we're not laughing at them, it's just, that's the answer -- >> that's why i love charts. >> ten-year yield, let's see what's that's done all week. as stocks have moved higher, the yields have come down and we're down to 1.66%, a four-month low. gold, what has gone on with gold, down -- it was up 4% for the week, but it's down $5 today. but it has been on the comeback trail for the last several weeks. >> and you didn't even notice that big fake tweet action earlier in the week. >> and what that all did there. terry dillon, what do you make of what we're doing in the market right now with the earnings season and everyone else going on? >> it starts with a minor correction we saw a weak or so ago, we got down to 14,600, the earnings were decent, the fundamentals seem to be in tact, the trend is in tact. the interestingoffsets are the earnings were a little bit of cost improvements and other types of margin cuts, which made their earnings a little bit better, that's a little

disconcerting. there's a lot of cash on hand because nobody's spending right now on the corporate side. and the other disckoconcerdisco me is consumers. the spending rate and their ability to spend. >> where do you see the conviction in this market? >> i see buyers consistently on dips, because they know as the risk -- >> any group? >> oh, well, no. it looks like it's been a broad stroke rally. i would say technology is probably the leader in sense of where we're going in the future and it draws the most money as far as that's concerned. >> getting ready for the 4:00. see you monday. >> see you later. >> would you stay with this market here, as long as it's going to go higher? >> i would stay -- >> are you lightning up? >> i've been lightening up, but i would play it to the cautious side, putting some options into my profile, lightening up a little bit, but the trend is in tract, so there's no reason for wholesale selling right now.

>> terry dolan, thank you, as always, for your insights. we're going out on an up note for the dow, the s&p and nasdaq will finish lower, but up for the week. a lot more earnings coming this week. a fed meeting, a european central bank meeting wit, and t second hour of the "closing bell" still to come with maria ç bartiromo. i'll see you monday. have a wonderful weekend. and it is 4:00 on wall street. do you know where your money is? hi, everybody. welcome back to the "closing bell." i'm maria bartiromo on the floor of the new york stock exchange. the market and dow closing higher for the fifth time. but the nasdaq set to settle out lower. take a look at this market as we settle out. dow jones industrial average lost a lot of momentum going into the close. it thought there were some sellers that came into this market and the dow finished up, but just by about 14 points or so. nasdaq and s&p 500 both in the red. tough day for the broader market, but