>> dr. jay. >> it's also in the auto space. >> a quick reminder as well. a bunch of all stars coming up including leone. power starts now. >> we pick it up right where scott and the gang left it with the amazing bull run on wall street. the s&p hitting new all time highs today, above 1600. up 167 points. that's better than 1 and 1/10%.

>> significant gains across the board and a look at some of the individual names. net flix and best buy more than doubling year to date. google, johnson and johnson. opinions on how long the bull run will last. let's get started at the nyse. >> it was a real stunner. the traders were positioned for a negative report below consensus that came out so far above. the revisions were so strong.

so the dax here, 100 point move in the dax. that's 1.25 in germany. where are we now? that's the support level now. the further we get from that and we're now 3% above the 2007 high. that's better for the markets. that gives strong indication of positive momentum.

>> it did show 114,000 more people. it did not show strong economic growth, stronger than we thought. here are the numbers. 148 was expected. it was somewhat lower. 7.5% unemployment rate. revisions to february and march. average hourly earnings, a tepid 0.2%. actually declining. that actually means forecast for growth in the second quarter will come down. it should provide something of

an anti-dote. here are some of the instructions. that was outside of residential. retail up temporary help. good sign of things to cover. here is the government. 11,000 down this month. just a word on government employme employment. reporting that federal government employment has fall on the 2% of total employment. began on a monthly basis in 1939. >> how do you miss. >> it's a sizable number.

>> a lot of people, relative to the total base population. not that many. >> steve, jeff, you have been notab notably. >> this number definitely came in stronger. >> not thrilling me about that. i'm also still looking at the forward-looking indicators. showing not great outlook going forward. we also saw that in earnings. >> if we look at these numbers you could basically be encouraged that they were not worse than we expected.

the job market seems to be able to with stand tepid growth. i'm. >> at the other side of that. they realize that the growth is not going to match up with expectations. >> the fed earlier this week changed its language. they are equally willing to restrict their bond purchases or expand them. what are these numbers do to that statement? anything? >> i don't think they do anything to that statement. the way to think about this, think about a long ribbon as to the length of time the fed is going to be providing accommodation to the economy.

>> it's great to be up here with you, ty. bob joins us. kenney, seema and jeff, they are doing a little selling here. >> we got that. we are seeing in kentucky derby terms, it's tepid. jobs coming back to the market and i think it's a great time. the risk/reward is here. i think there is about a 5% move

to the downside. >> what do you think of that. >> i think that he's right in the sense that once he broke through 1600, you have had shorts building up. >> the current estimate for the year, multiply 15 by 110 and you get 1650. is there something unreasonable. which have all been showing real kwaekness. we're talking 165. >> the most important.

>> absolutely. just over the last ten days. there is a couple of reasons for that. first we have been seeing a rotation of capital. >> gdp number, jobs data, analysts telling me, if companies feel better about the health of the economy. >> if you're taking money out of the market right now, where are you going to reinvest it? >> it's a great question.

>> we had nearly 15% gains in the equity markets. due to the fact. >> he is looking at which other sectors investors. >> all up more than 20% since the november low. >> dan greenhouse points out that some of the very sectors are now in focus. also energy and materials. energy a lagger. there was nervousness gaining

winners in the past. the construction materials company. greenhouse tells me . >> this is still a full month before the fire season actually kicks in. >> today the shares are up another 1.25% to 64.69.

>> a spokesman from california saying we're going to be at mother nature's mercy. two homes are under immediate threat. it is just northwest of la. good afternoon. >> good afternoon. you can probably see behind me

the burnt out shrubs. this was the front line of the fire that has been raging here in ventura county for the past 24 hours or so. it has quieted down on the pacific coast highway but it has moved inwards. officials say the weather is working slowly to their advantage. that have moved inwards at the coast. conditions are right for fires with dry weather. record high temperatures and because there was no rainfall this season, the bush and shrubs behind me that you're seeing all across california make it very flammable for these fires the american red cross has set up shelters here in ventura county.

not only in ventura county but south of la, fires are raging there and that's why many officials are concerned for what they say will be a difficult fire season in the months ahead. >> thank you very much. both of its primary insurance units. a dividend could happen after it completes the sale of its plane lease unit in the coming weeks. >> bucking today's trend it's down 20 bucks which is better than 10%. despite today's drop, the stock is still up nearly 60% this

year. >> the national rifle association holds its first big convention since that win in dc. what's on the agenda now and how will the organization keep new gun laws off the agenda? we're live at the nra's big meeting next. microsoft up 25%. changing the world is exhausting business. with the innovating and the transforming and the revolutionizing. it's enough to make you forget that you're flying five hundred miles an hour on a chair that just became a bed. you see, we're doing some changing of our own. ah, we can talk about it later. we're putting the wonder back into air travel, one innovation at a time. the new american is arriving.

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>> coming up monday, we have a really special show that will focus on high frequency trading. see if it's affecting you whether or not. is it adding to free and fair markets or taking it all away. >> boosted by sales growth and cost cutting moves. and delta and american matching united increase in the fee for changing a domestic flight reservation to $200. up 50 bucks. i'm going to tell you a little bit more. this is video of the world's mosted a vaned solar powered plane.

>> a reservation behind that part. >> fresh off its huge win to stop background investigation. >> tiler, good afternoon. >> runs through sunday. nine acres of convention space. when that expanded background check legislation was shot down in the senate, major victory for the nra. now they are mounting a coordinated effort.

>> as well as manufacturers. this is a record year for them. it is at an all time high. >> louisiana governor band sara palin. more than 70 thousand people are expected at this convention. >> sharing the latest jobs report but there are serious concerns about one key area and

that is american manufacturing. before we go to the break, another dow driver, hp is up 1.75% this year and 46% this year. planning process, it's easy to follow the progress you're making toward all your financial goals. a quick glance, and you can see if you're on track. when the conversation turns to knowing where you stand, turn to us. wells fargo advisors. from the united states postal service a small jam maker can ship like a big business. just go online to pay, print and have your packages picked up for free. we'll do the rest. ♪ oh, boy. [ groans ] ♪ ♪

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all right. let's get you up to date on the bond market. we have had rally in stocks today. rick is down at the cme. >> how you doing? indeed, the number was a surprise for those looking for underperformance. historically it's not a huge number. revisions, you know the story. yields are up. we are making new low yields going back into december. what a difference a day makes. now if you look at the ved we keep talking about europe tens. it went out to 60 and koun down to 40. this spread is a great trade.

>> thanks rick. you're up to date on the bond market. hi, sharon. >> hi. we're just minutes away from the close in the gold market. after we got that positive jobs report. but a lot of the focus has been on copper which closed just about a half hour ago. it is up over 6% on the session. a lot of folks focusing on the fact that the metal exchange have declined. that report is something that helps to do the game. you are looking at copper on a tear.

>> thank you. let's get the trading action. bob is on the floor for us. our eye on the floor if you will. >> looks like it will be a strong close. >> you want to watch the market on close orders. that's some indication of what orders you will get. wouldn't be surprised to see strong buy orders. people say to me so what. it's another new high. actually it is important. there is your resistance. the more momentum and the further you aare afrom that floor that we have had in october 2007.

you have got the russel 2000, that's the third one. and the two shining groups. biotech and home builders. >> thanks so much. now the nasdaq is outperforming the industrial average. hi, seema. >> strong reaction to that jobs report. much of that has to do with apple. the stock witnessing its best two weeks in nearly four years. for a while apple was the reason that the nasdaq was under performing but now it does seem like the stock is in come back mode.

>> it's a biotech name. strong earnings and that's why that stock continues to move higher. >> thank you very much. warn buffet holds his annual meeting in omaha tomorrow. more than 40,000 people are expected to attend. >> that was not all he had to say. we got the chance to talk to him about the fed head. >> i think it's to the credit of allen greenspan that he recognizes that maybe he was wrong with his extreme free

market approach. let it run, baby, let it run. i think that was wrong. china actually is wiser than we are at nipping crazy booms in the bud. >> how so? >> they're willing to step in and intervene. they're willing to take the punch bowl away right in the middle of the party. i like people like that. he's doing knit a crisis. as an antedote to crisis.

>> it's like a fellow goes rabbit hunting and thoroughly enjoys himself. and that's what happened in the housing market. >> just about a half hour after we sat down, we -- this is about a half hour before we sat down with him we watched what happened with the jobs report and saw the markets start taking off again. we asked munger what he thought

about that. he doesn't seem to pay much attention to those type of markers. those type of things shouldn't sway you. >> we already know that warn buffet and bill gates will be on squawk box live. add up all the zeros in their portfolios and you get a lot. trust me. starts at 6:8:00 a.m. eastern time. >> hiring in that key sector apparently leveling off. is it a pause or is manufacturing running out of steam? phil lebeau on the case in chicago. phil? >> i hate to rain on anybody's market parade rally. now you will notice that over the last three years, more than

a half million jobs coming back and that's really when you look at the bottoming in 2009, look to the right there and you see that a nice steady uptick. but at the very end it starts to plateau. and what we have noticed if you include april is that u.s. manufacturing sector overall, it added no jobs in the month of april. so it has plateaued over the last couple of months. on top of that we had a report that small manufacturers have invested less in capital production. bank of the west provide a number of things. and what i want you to focus on is on the far right. because on the far right you see that it has tailed off considerably. really the only areas where we are seeing a lot of strength, you have got to look into two areas that are doing a lot of hiring right now. and yesterday we talked about ford adding another thousand new

jobs in kansas city. they are doing this because they have real quick i want to look at the auto and parts index. there is no doubt that investors have been putting money into the sector because they have been getting returns there. you have to wonder whether or not we are starting to see the auto or manufacturing sector as a whole pull back. and real quick we have got breaking news. tesla is about to hold a conference call. the news here being remember when they announced their financing offer just a few weeks ago? they said we're going to guarantee that the resale value of the model s if you go through the financing will be equal to a mercedes s class? now they're upping the ante saying the value of the model s when you return it is going to be better than mercedes, audi, bmw, guaranteeing that it will

be above the resale value of the our names. >> thank you very much and bring us up to date as you see fit. >> and a former special assistant, men, welcome. let's jump to phil lebeau's story about the job's story in manufacturing. today the jobless rate fell to a four-year low . >> we are around 58.6 or 58.7%. american adults who have been

out of the work force. it's due to the fact that. >> that is the number of unemployment claims and that number was at its lowest level in five years. number two, you have had sustained job creation now for several years. and the average number of jobs created this year have been almost 200,000 per month so it's half full but great concern because it's not enough job creation to bring the unemployment rate down. as you know, in many communities, the number is far higher. so it's a mixed bag. so i will take better news. >> better than the alternative where we had very weak numbers or at least the initial report

for march was very weak job numbers. let's turn to one of the really hot topics and that is the affordable care act. obama care. and whether you think that this ultimately could slow job growth as companies particularly smaller companies decide not to add workers so that they don't have to add health care expense. is that going to. it is going to.

>> restricting hours so that workers don't slip into that category where the company is required to provide coverage. >> i think this is going to be an unmitigated disaster. you have red lobster and olive guaarden and a movie chain that says they will limit their employee's hours. i think you will see a lot of small businesses, those right around the 50 employee mark to shed employees to get under that cap and reduce the hours of full-time employees so they don't have to pay them a salary which would require them to pay and provide for health care. this is going to be a disaster. >> you know, the thing i certainly think we also ought to be careful of is people --

>> the man has not come roaring back with the recovery that we have today. there is going to be challenges on the implementation. what's more important is whether the nation will be better off if we bring a large number of the 40 million americans into a situation where they have health care coverage and access to quality care. we are going to be a better nation five or ten years from now with the affordable care act. >> does this. >> the folks making over $100,000 a year, many of those are job creators. many have had the taxes increased by the president.

and of course it's diminishing returns. i don't understand this one. >> it's -- it seems counter intuitive to me but maybe not to you. >> let's be candid about it. those who are making more money are doing better. they have earned a lot more in this recovery period. their incomes have risen. profits are up. it doesn't surprise me. main street is still suffering. main street still has high unemployment. it doesn't surprise me. i also think that a great deal of the responsibility is congressional inaction. congress has refused to accept the president's offer to dial back some of the sequester cuts. congress refused the idea for an american jobs act that would create jobs, doing something about infrastructure. congressional inaction in congress's numbers are way lower than the president's. >> congress doesn't create jobs. it's the free economy. >> well, here is what i think.

they all create jobs. >> and that's the last word, folks. thank you very much. good to see you every month. have a great weekend. >> pleasure. >> speaks of jobs, while the young are still struggling to find them, it's a second act for older workers. take a look at one of the drivers of the s&p today. it is up better than 50% this year. and it's up a half a percent today. ♪ [ cows moo ] [ sizzling ] more rain... [ thunder rumbles ] ♪ [ male announcer ] when the world moves... futures move first. learn futures from experienced pros with dedicated chats and daily live webinars. and trade with papermoney to test-drive the market. ♪ all on thinkorswim.

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>> part of the rise is that baby boomers are holding on to their jobs longer. there are as many as 9 million people ages 44 to 70.

they are getting paid for work that combines their personal passion with a social purpose. and where are these encore jobs? health care, education, government, and non-profits are the top fields for encore jobs. she says consulting as well as serving on non-profit boards and volunteering, those are great ways to get started. look at volunteer match.com. as well as idealist.org are great sites to go into.

>> let's talk at jp morgan. it is under fire. regulators reportedly accusing the bank of manipulative schemes. that's next. another s&p driver. avon up more than 60% this year. more power in two minutes.

>> we are watching as the market is lev tating to uncharted territory but is this almost as good as it gets? we will debate how much unemployment could hold job growth back. and quicken loans is lending out home loans at an explosive clip. and brian jackman is hanging out with the horses for the kentucky derby. who owns these beauties and is it a good investment for you to own one? back to you on power lunch. >> thank you. the "new york times" running this headline this morning. jp morgan caught in swirl of regulatory woes. government regulators accusing jpm of regulating energy

trading. schemes that transformed money losing power plants into profit centers. we have the co-author with me here. also reporting on the story separately. i i'm going to start with you. i seems as though things have turned recently. they're under a lot more scrutiny than they were before and jamie dimon seems to have lost some of his luster. >> i think you have lost a lot of regulatory actions that have emerged in the aftermath of the multibillion dollar trading loss that the bank experienced last may or announced last may. >> uh-huh. >> since then we have seen a number of agencies investigate the bank. i think at least eight federal agencies are currently investigating the bank and it's for a range of potential violations from, you know, the way that the bank collects its credit card debts to now the

latest development in the allegations of manipulating the energy market. >> right. >> kay la? >> it's considering. the energy angle to the story brings a new executive into the spotlight. >> we have seen a tremendous executive. both those who have been driven out by the trading losses and others who have left, but, you know, after the trading losses. it means that jamie dimon, who was really well known through the, has seen a lot of turnover in his executive ranks. i'm not sure the bank can afford very much more than this.

>> as long as jp morgan keeps posting good results, will investors really care about this? >> it was because of a lot of cost cutting and relegation. >> this shareholder meeting, ground swell of shareholders. if we see that, through this unbinding roll of chairman and ceo, whether the shareholders are going to start to vote in that direction. >> we will see. ladies, thank you very much. >> drones are controversial. but the companies that make the drones are now taking aim at corporate --

>> drone aircraft now getting use in commercial applications. john forth has the details. >> when you hear the word drone. >> a war plane. >> you probably think of the pilotless attack planes made infamous in iraq and afghanistan. but here in american soil there could be big business in planes smart enough to fly themselves. >> turns out self-lying planes are an ideal way to check for

plants or even do crop dusting. in populated areas, things get more complicated. they hope to market drones to police and fire departments looking for cheaper alternatives to a manned helicopter for search and rescue. >> if you look at the 40 or so,000 agencies, the vast majority of them don't have any kind of aircraft. >> but they are not just targeting farmers and big business. about 40,000 of these smaller drones. >> the u.s. military has about

7,000. >> there are many times more civilian drones out there. >> and it is ultimately going to be creative users of low cost drones that define the market. >> we put advanced technology in the hands of regular people. >> the auto pilot up here. regulation is standing in the way for this becoming a truly big business. the faa is going to want to see how the tests go. but big potential here. tdd# 1-800-345-2550 you should've seen me today.

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>> monday on power lunch. we will talk about high

frequency trading. historic day out in the markets today. the s&p 500 is above the 1600 mark. the dow just a hair above the 15,000 mark. >> we're in the same room. that will do it for today. street signs begins today. >> indeed it is an historic day on wall street with the dough earlier today breaking above 15,000 for the first time ever and the s&p is solidly above the 1600 mark. there is lots of money to be made today. a seemingly monster jobs number, driving from the get go. but we pulled through the report and found really nerdy nuggets that told the real story. and did we just get handed a real dose of housing um