>> bmc agreed to be bought by a private equity group. >> street signs begins now. >> what a difference three years makes. three years ago today, the infamous flash crash spooked the world, but here we are, more than 4,000 points higher than then. you won't believe what bill gates said about the ipad, the founder of microsoft's bold call kind of against apple. you might want to fill up your

car now. and what pfizer is doing to make it less hard to buy viagra online. we have breaking news. john? >> brian, i am here inside the creative conference. i have got to be a little bit quiet. but here's the big news. adobe announcing that they are moving entirely to the subscription cloud model. you're going to have to pay that $50 a month for access to the entire suite. they include updates to photo soft and versions for iphone, ipad, and across android. they're making a big push to replace flash with new technologies that work with html

five but doo do much the same thing. mandy? >> the stock is none the less still down by eight tenths of a%. >> here is something else to really chew on. the narrow reigns that we have been trading in. today's range is 40 points.

>> what has changed, do you think, over the past three years? >> i want to note we are hitting an historic intraday high. financials and industrials are leading. look at these double digit gains. how much -- if you look at the semiconductor index. the stock has been powering forward. let me get to the flash crash issue. a couple things are different. there are new circuit breakers in place that would allow them

to move in individual bands. but if it gets too far out of whack, it will stop and halt the market. five minutes is very typical. i think that will go a long way towards mitigating the worst possible effects of another potential flash crash. that's been eliminated as well. mandy, back to you. >> i just tweeted out the fed plus japan plus quantitative easing and europe, it's the market math equals a record high. there's your math of the day. >> i think we can all go home now. >> thanks a lot.

telling us how he feels about bonds. they stink. he continues to love stocks the only way that he can. her day began apparently sometime last night involved a huge interview. great day and being pooped on by a bird but she is still here. >> those are all the highlights. i am still here and i am thrilled to be here talking about this stuff. >> that's the reason. >> stocks are reasonably priced. they were very cheap a few years ago. but stocks grow in value over time. basically the company is under it. i like owning stocks. i do not like owning bonds now.

their condition is far different than what kpess now. >> those conditions, what are they? at the very top of the list is an accommodating federal reserve. says you should throw all the old standard ray thoughs out the window. >> i would favor those enormously. i think it's silly. bonds are priced artificially. and that will change. when it changes, people could lose a lot of money.

>> the question we most frequently get asked is where would he put his money? it's very rare that he actually gives any specifics. >> that bird, people coop trying to tell me that it's good luck if a bird poops on your head. i think they just tell you that so you don't cry. >> or you might have extraordinary luck. who knows. maybe stay inside to be safe. >> she is inside. >> she got pooped on inside? >> she is in a hangar. have they identified the bird? >> they are rounding up every single bird.

>> tried to pass around some of the bits of the interview to get an actual response and the response was this. how does mr. buffet really define a productive asset when he's talking about stocks. hen he talked about the fed and their involvement but really didn't translate that into equities. as far as bonds stinking, traders didn't really disagree, but stink is a relative term. in their next question was if you don't want to open them, if you sell them, how long will it be before they actually move and rates actually go up. >> there is stuff out there that stinks even more. >> no. the issue is that most would

rather sell than buy bonds. that's a given. how do you get paid. how long is one going to have to wait before the thumb on the scale allows treasuries to breed like a fine wine and actually move in a way that would be kmis rat with the risk. >> rick, thank you very much. bring in jim and bob. >> that's the simple math on bonds. last week the fed said they will hold them down for a long period of time. they will stay a reasonable investment until the fed stops buying them.

>> when the fed stops, everything changes at that point. but they're not going to stop for at least many more months. >> so back to my question. when the fed stops buying bonds, stocks will stink more. what do crow think of that, bob? >> they want to make sure that they don't go out too long. they don't want to reach for yield. they have to understand what they're buying. that is what we have been doing for our clients. bond yields got to really take off and people will start to

move back into the bond market only to be caught for a second time as yields continue to move up. you want to have good quality bonds. you want to know what they own and you want to be prepared for that. you know what you hoped. the stock market is going to continue to do well. artificially you have all this additional liquidity. >> jim, listen, i know that ben is the man behind the curtain and he is powerful. foreign institution is still a buyer. even when it backs up or stops buying? >> sure, it is possible that you could get foreign demand. look, right now if you take three people, the japanese is a person, the chinese is a person

and the fed, there is two-thirds of the treasury market right there. they are buying enough to cover the deficit. let me point out one other thing. we have yet to see a decent recovery. so i hear what bob is saying that the fed is going to stop when things are better. they're not better yet. >> i think we're at a new

normal. probably going to grow around 2.5%. that artificial supply that the fed keeps pumping in is certainly helping. this is the opportunity for companies that are out there. if the ceos really got up and started re-investing for the future, the fed is giving them the opportunity. bernanke is giving them the chance to do it. >> jim, thank you very much for the debate. in the meantime we have another guy you will really like. >> good to see you. it shows banks continue to ease credit standards.

demand for business grew only in the second quarter. a few banks eased for residential mortgage. bottom line in all of this data is we follow it. where is this recovery? we have had the very gradual easing of credit standards. most times after a tightening that we have had. this is not. it has been a slow drip but it does continue to suggest more lending happening. >> the big take away is it continues a pace and we could continue to see better investment from those numbers.

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storm? >> israel certainly hopes not. certainly israel is on high alert. israel has moved two of its ant anti-and also, israel has an annual exercise in the north. so not to make things worse but after the attacks, which they have not officially admitted to, it is clear that israel did

respond to the attacks against the long range rockets that were being transferred from iran to hezbollah in south lebanon. israel is bracing waiting to see will syria react in anyway. >> i understand that you are secretary of state, john kerry is on the way to moscow today. a plan to try to end this. >> i have got to say that the chances are zero. certainly the americans are trying to work out what to do, whether or not they can get involved in some way without putting boots on the ground. israel has shown the way that it is possible to do something in syria.

>> all right. thank you very much. stay safe. i know it's calm before the storm. oil prices on a related note are a one-month high. nine of eleven expect u.s. oil prices to push back towards 100 bucks a barrel. >> there is definitely an upside bias here. and we are looking at higher oil prices as we speak. keep in mind that traders are bracing to see what will happen next and whether there will be it doesn't seem to be anything imminent at the moment but they are just waiting to see and partly we are also looking at the rise that we had on that positive jobs data in the u.s.

we had the cme group on oil and natural gas do all the volatility that we have seen. if you really want to know, in the marketplace, keep your eye on the marketplace. that is the global benchmark that a lot of traders are watching to see how it will play out in the oil. >> not a huge oil producer.

>> i think what you want to watch is the risk. you want to watch for the potential. >> and iraq is a really important oil producer in the middle east. 45% of new supply growth between now and 2035 is supposed to come from iraq. so any sign that iraqi production at risk would be very worrying to the market. >> how much of this is going to be russia? right? russia, to me, remains a big wild card. >> russia is a big backer. they have their naval base in syria. it is a question of, you know, could russia put influence on?

even if they weighed in, i don't think you can put this gee knee back in the bottle. i think it will be a nasty fight to the finish and i'm not sure that western powers can do much unless they will actively intervene to bring the conflict to a speedy resolution. >> could we see a spike in oil prices? if we do see destablization, how much could we go up? anything involving a dispute with iran would be what would really take us out of the current range. really need around 100 to

balance the budget anyway. so i think there is an incentive to keep prices above 100. >> got it. >> thank you so much. very interesting conversation. >> a real bullet fired from the first fully 3d printed plastic gun. one metal part. how this could change the entire gun debate. it's as simple as this. at bny mellon, our business is investments. managing them, moving them, making them work. we oversee 20% of the world's financial assets.

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>> shouldn't you be allowed to buy citizenship? australia says yes and china's wealthiest there apparently signing up. what kind of numbers are we talking about? >> they have sold their first investor visa. we don't know the name but there are hundreds more wealthy chinese lining up behind it.

they can stay for four years and apply for permanent residency. the program will create jobs and help the economy. experts say up to 700 chinese will apply every year. but critics say it is a cash for visa program. recipients are now wealthy chinese. the charges were recently filed against one firm for fraud. it's unclear how many jobs this program has really created. and investors are also suing saying they lost millions in projects that never materialized. >> it is absolutely fascinating.

>> it's not exactly a country that is desperate for cash? >> no. they have got budget issues and they never turn down money. the u.s. is only $500,000. australia said we know how many wealthy chinese there are. we know how much they want citizenship. let's set the bar. if other thing is you can put that money in bonds and stocks and managed funds. unlike the u.s. where it has to go physically into a project that will create jobs, you can invest the money in australia.

>> the cnbc realtime exchange market snapshot is sponsored by --

basically, those three see about a 16% upside in intel from here. >> it is certainly up more than 5%. >> makes chemicals. >> all kinds of things. >> exactly.

>> cheaper production. it's a. >> when i first read the story, i thought okay. it's a storage company for computers. they literally have portable storage. shipping containers? >> as long as it doesn't fall off of the back of the ship. >> considering the success that my team had last week.

>> any good news will be on the upside. >> a new development in gun manufacturing has some people very nervous. >> plus the big change that will make it easy for guys to get that little blue pill. and now time for an awkward transition. no relationship, but tell us what is coming up on the closing bell. >> nothing awkward and nothing taken there.

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>> we have a new development in gun manufacturing today that has some people very nervous. remember that america's gun, rise of the ar-15, we introduce you to the 25-year-old law student who is making parts from 3d printers and putting the parts online. apparently he has produced a working handgun entirely printed from a 3d printer. all plastic guns that are undetectable are still illegal.

wilson and his non-profit group plan to put the blueprints for this gun online and perhaps it is not difficult to see where this print your gun at home trend could go. thank you for joining us on relatively short notice. >> good afternoon. >> thank you. what is your goal here with regards to 3d printing and firearms? >> 3d printing is a very good thing and it does all kinds of good things. cars use it to engineer parts. the person you mentioned puts a piece of metal on it so it will be detectable, but obviously a

terrorist or criminal or somebody who didn't want to be deteched wouldn't do that. we think it ought to be made a crime to do this, to make any one of these guns from a 3d printer. congressman has introduced such legislation and i will be pushing it. >> i know you're a busy guy. we had a special on this a couple of weeks ago. shortly after that, how do you force this? if i buy a $1500 3d printer, i can make these parts at home. >> making it a crime to have such a gun. if the police see you carrying one on the street, they will know it's a crime and if anybody sees you doing it, they will know it's a crime. obviously there are first amendment issues. we have had this issue about

bombs being put on the internet in the past and someone could go overseas and put something on the internet. we have to do more than just make it a crime. i agree with that mindful of the various constitutional and other types of constraints. >> the maker in brooklyn, new york, you are one of two senators. but what is interesting here is freedom of speech, right? and you hit on it. we look at the boston suspects and we look at maybe what they had access to online. and we have this now. where is the bright line? >> it is always a balancing test but you have got to be careful. i think we need some study and some implications and things like that. we're in a different world now where individuals can be empowered with knowledge to do real damage.

the first amendment is not absolute. you can't dc wu have liable laws. every amendment has reasonable limitations. we certainly ought to be mindful of the fact that there are new dangers. >> what is the next step here? >> we want to get our bill done. prevent these type of guns. everyone saw the movie "in the line of fire". he spent months and months trying to craft a gun made of wood and plastic. he spent months doing this so he could assassinate the president. now it's real. that's much more frightening.

>> and last question is this. we have seen how hard it is to get any gun bill through. do you believe that you would have bipartisan support? >> i would just hope that the pro gun people, even they would understand that this is a problem. i haven't heard anyone say we shouldn't have metal deck tors in airports and this has the same thing. >> there is only one company in the business right now. this is not the company whose printers we showed you. cody wilson said he used stratisist. but any 3d printer could be used for any purpose.

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earlier today. jim cramer had this to say. >> steve palmer has changed the way people look at that company. it's maybe late in the game but i like the fact that the company has been proving the doubters wrong. it's not just windows 8. i like the idea that there are sum of the parts are much bigger than people think. >> can microsoft bounce back? is bill gates right? why is this strange man on our screen?

it wasn't real harsh but he was saying the machine is not complete. >> i don't think so. i think apple has out executed microsoft at lefrl. apple figures out this is a product we want to build and they go build it. if i look across their entire portfolio if you look at the trend that is going on it's the enterprise. how they buy technology. >> it's a utility.

i think it's going to be a company that is around for a long time but not a very exciting company. they don't have a product line-up. >> trying to be too many things? maybe they should split themselves up. >> rocky,rocky, rocky. that's one of her predictions for the year. so she's literally just put the worm on the hook because she's fishing. >> but i'm allowed to because brian's prediction for 2013 is that japan will be the best performing developed market is so far coming true. let me just have a little moment. rocky? >> so agree with her, rocky. >> rocky? >> i'm sorry? >> so is it just trying to be too many things to too many people? maybe they should focus on what they're good at? split themselves up? >> i just don't see that happening. it's something that's been talked about for a long time. they just aren't very open to that. it's a company that's focused on big monolithic products. you want products that are ideally suited to three to five tasks. that's what apple does.

that's what facebook does. they focus on breaking things up on to the four, five, things that users clearly want to do. not the 5,000 things that somebody might potentially want to do. >> well, listen. i'll agree with mandy, shockingly. market's down. somebody record that. i will agree with mandy. except for the xbox name one product microsoft has really kicked butt with the consumer. not the enterprise side, the consumer side aside from the xbox. >> there isn't one. i just can't think of anything besides the xbox. and cramer in his segment, he made one suggestion that i really agree with. is buying netflix. microsoft has this huge footprint in the home with xbox. netflix is already on it. if you could incorporate netflix and content more heavily into that, that's a real play microsoft has in the living room. >> rocky agrawal, not such a strange man. he is a friend of cnbc. thank you for joining us. >> thank you. >> no more awkward pharmacy visits for viagra patients.

pfizer coming up with a website for ordering the drug online. you would think this is a new way to cut out the middleman. that would be bad to pharmacies. but pfizer is actually partnering with cvs to power the website. joining us from morning, star. damian, good to have you on the show. to what degree does this completely shake up the distribution system for the drug industry? >> i think right now it's really going to be limited to just some of the more drugs that could be more sensitive to counterfeit and also drugs that patients may feel a little bit incoupkincumb about goipg going into the pharmacy. birth control pills, cialis, viagra. i don't see a big shift in the wholesaler distribution chain that's really in place right now. >> do we know if pfizer will make more money per pill selling it this way, damian? >> i don't think so. i think really when you look at the margins for the traditional

wholesalers, they're razor thin. you know, the pharmaceutical companies don't really look to try to get any of those economics back. it's really done to just outsource a really cumbersome task that big pharma doesn't have a lot of economics in. i think there's different motivations here besides gaining more roprofit. >> hang on. why wouldn't pfizer make more profit? for example, if i was someone who went and got counterfeit viagra and now it's actually easy to get real viagra online through pfizer, why wouldn't i go and do that which would mean more money for the company? >> that's a good point. i don't think they're going to save -- or make more money per pill they sell but they may capture more of the market by getting rid of the folks purchasing some of the counterfeit drugs. by that standpoint, yes, they would make some more money with this program. >> who loses out in the long run? >> in the long run, you know, i don't think we see a lot of losers here. really you're seeing a lot of the illegal drug trade potentially lose out which is a good thing for drug companies. there's been a lot of problems

with the distribution chains with generics pushing in that just aren't authorized. i think that that could be a big win for the entire drug supply chain. >> bottom line, pfizer's had a pretty good run, damian. is it a good buy at this level? >> we've got a neutral rating on the stock. we were bullish for the last 12 months. pfizer with the whole group has really run up. we don't see a lot of opportunity with the stock right now. >> thank you very much for your thoughts. coming up next, the beef flies the coop. you straching your head? jane wells is going to explain it for you. it's monday.

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an appropriate segment because mandy has just flown the coop. she's going to be co-hosting "closing bell." i'm solo to wrap it up. chicken or beef? the age old question has a new ring to it. jane wells. you were holding up a chicken's butt. what is that? >> that's a whole chicken. it's called a chicken, brian. this is the age old question i'm throwing at you. which is coming first, the chicken or the cow? consumers increasingly say the chicken. why? you know why. government says retail beef prices in march averaged $5.30 a pound. that is a new record. the nation's cattle herd is smaller after last year's record corn prices. tyson's earnings missed in part because consumers and restaurants are switching to cheaper poultry. the american restaurant association says chicken isn't exactly a steal.

>> retailers really haven't passed along the lower chicken wholesale prices that they experienced over the last year. as a matter of fact, retail price chicken prices in march were the highest for the month on record. >> though the usda says the spread between the wholesale price of this and the retail has finally fallen below a dollar, first time in almost a year, meantime it also says the cost for buying groceries for a family of four can average $127 to $289 a week. david arkudi spends about $250. >> they're going up. >> arcudi buys the groceries in his family. uses coupons. shops around. started growing some of his own in the backyard. says his foot bill is up $100 in a year but partly because his oldest son is about to turn 13. >> my wife and i made a rule that now that he's a teenager, that his friends are not allowed to come here after school because they'll eat us out of house and home. >> good rule.

the usda says feeding a teenage boy alone could cost as much as $79 a week. that is just groceries, brian. that doesn't include the fast food. >> listen, my relatives in southwestern virginia consider the other white meat to be p possum. for most people it's pork. what did tyson say about delicious pork? >> tyson also said along with beef volumes falling, pork volumes are also falling. poultry is the only thing going up. i got to tell you, bacon prices have come off their highs. for an upcoming segment, i've been making my own bacon. go to twitter @janewells you can see the process. i bought the pork belly, cured it, smoked it, cooked it. >> there's craft brewers at home. you're going on the other side of chew and brew. you're going to the chew. you're making your own bacon? >> i'm on the chew. it could mean bacon's jumped the shark if i'm making my own bacon. >> i think we just broke some news. jane wells, making bacon.

is that news? >> it's good stuff. >> jane, thank you very much. that was good stuff. and delicious. i'm going to leave you with this before we go to "closing bell." bill and mandy, tesla. all time high. remember the controversy a few months ago? huh-uh. 57 and change for tesla, all time high. with that, i will send it over to "closing bell." thanks for watching. and we do welcome you to "closing bell." i'm bill griffeth at the new york stock exchange. >> i'm mandy drury at cnbc's world headquarter. maria bartiromo will be back tomorrow. coming up, dow 15,000 on friday. we crossed that level investors are hoping to close above it. >> we're looking back at history as well. it was three years ago today this was happening. don't worry. this is not a live picture. that was, of course,