that it has, indeed, entered into early stage discussions with warner chilcott. actavis further stating that no agreement has been reached. that stock has resumed trading. warner chilcott will resume trading at 3:05. back to you guys. >> thank you very much, josh lipton. that does it for today. thanks for watching "street signs". >> have a great weekend, everybody. stay safe, america! hi, everybody. happy friday to you. welcome to the "closing bell." we enter the final stretch for the week, a record-setting week. this market trying to finish the week on an up note, although we are negative right now, down about ten points on the dow jones industrial average. nasdaq, s&p 500, mixed showing. you've got the nasdaq up 20 points right here with technology one of the leadership groups on the upside today. standard & poor's 500 up about 2 .25 points although it is the

dow showing a decline right now. we've got a big show ahead. even amid this historic bull market, with the dow above 15,000, there's a new report that a smaller percentage of people own stocks than before the 2008 crisis. and they are missing all of these moves. we will look at why this is happening, what needs to change to get people to trust this market once again. also, titans uniting around jpmorgan's boss today. jamie dimon, richard mourdock, barry diller, some of the rich and powerful that are closing ranks around dimon. this as jpmorgan continues to be under siege, this time facing a lawsuit from the state of california. we've got the full report and we've got the report on who's defending ceo and chairman, jamie dimon. tyler mathisen's at headquarters right now joining me as well. hey, ty. >> in for bill griffeth on this lovely friday here in new york city. and also this hour, we're going to tell you why espn is reportedly considering paying for part of your cell phone bill. that don't sound good.

the answer may change the future of how we watch television. stay tuned for that report. maria? >> also in the markets right now, ty, we've got a mixed showing. the dow jones industrial average negative here, although the s&p and nasdaq shows a gain. the dow tonight at 15,074. the nasdaq up and the standard & poor's 500 index, which of course hit several records this week, up to 1,629 now, a gain of 2 1/2 points. bob pisani in the middle of the action on a market that just won't quit, bob. >> that's a very good point, maria. and i know the dow looks flat, folks, and quite a few looks quiet. don't let that lull you into complacency. we've been telling you about the move up in cyclical stocks and materials and energy and financials. take a look at some other sectors that are really doing well. there's some broad swaths of the market that are doing well. defensive names, even in health care, hospitals and hmos are up

a 3% this week. there's the ihf. i'm giving you the etf symbols. biotechs have been on fire for weeks pop new high in that ibb index. pharmaceutical stocks, these are the drug companies, up 1% on the week, that's the ihe. semiconductors have been on a tear for two weeks now, ever since the earnings came out. and st micro and micron, these are examples of the sectors that are moving. there's stuff that is still dropping out there for the week. and we'll continue to add to this -- gold continuing to see outflows, the gld's down almost 3%. utilities in particular, the worst week we've seen in utilities in about six months. that's a very defensive group. maybe some concerns about interest rate sensitivity there and long-term bonds. same situation, maria, blv also to the downside. for the week, though, the stock market is still rallying. we're seeing nice moves up. industrials, consumer discretionary, and materials,

there's all that defensive group. maria, tyler, back to you. >> i'll take it. thank you very much. today's "closing bell" exchange, jeff kleintop, john meryl, and our own rick santelli. welcome to one and all. quint, let me begin with you. you have been, you say, relatively cautious for some time now. and you still have a lot of your assets in cash, dry powder. what would it take to make you put some of that money to work and why are you so defensive now? >> it's been tough. it's been to our detriment that we've been overly cautious to see this market on a tear. quite frankly, we didn't put a lot of faith and credit that the fed would be able to push this as high as it's gone. now that it's broken out, it's tough to argue with the strength in the market. we still believe that there are a lot of areas that are very, very extended, that are propelling the indices higher. so it's very tough to put a lot of capital to work. but we're finally, finally starting to see some value, i think what you're going to hear

over the next several weeks is we're going to start to see the inflation trade start to rear its head. now, i don't think you're going to start to see that in the gold and silver. i think that's a totally different ball game. that's more o of a fear trade. but i think what you're going to start to see is the materials, the base metals, companies like that start to really poke its head up after being beaten down for months. and so, finally, we're starting to put some capital to work in some areas that we believe there's some value. we're selling things like the johnson & johnson's, the procter & gambles that are way ahead of themselves and buying some things that have been beaten down. we're doing it very slowly and think we'll get a better correction in the future. >> what do you think it's going to take to get the retail market to trust this environment get? way lower numbers in terms of retail participation this time versus what we saw before the crash. any thoughts on that? >> i think that the fed has to get out of the way. i think the people are very

aware, anybody that you talk to on the street is simply saying, i don't believe in the market, as i don't. i have a very hard time trusting a market that has been directly correlated with fed intervention. if we can get the fed to back off and we start to see companies still do well, then i think the people will say, hey, maybe it's not a bad opportunity to start buying some of these longer term blue chip names that aren't just going to go out of business some day. >> that might be the catalyst -- i'm sorry, that might be the catalyst. but i think what really drives them into stocks again, is that they start to lose money in bonds. let's face it, they've been pouring money into the bond market for the last five years, on the idea that, well, it never goes down, right? if we start to see bond yield drives, and they rose a bit today, if we see that continue, the ten-year get back up to maybe 2 1/2, even higher, that, i think, is what compels them to go back into stocks. >> rick santelli, you had the report earlier today and you showed the bond yield. the ten-year is up about what,

1.9 right now. and a couple of weeks ago, it was 1.6. are we beginning to see, potentially, that move that people have been talking about in interest rate? >> you're right. it was actually april 27th, where we had the low yield close for this most recent cycle, which was 163. so 163 and 190, we were at 193 briefly today. we closed at 174 last friday, even though there's a new current issue ten-year that the start's at. right. it's a huge move. and yesterday at this time, when we were talking about the dollar yen, many of that monitor the markets didn't think that foreign exchange move was responsible for the treasury move, but as it turns out, it's one of the issues that is responsible. just think about backing into it. you see dollar commodities falling through the roof today, which makes sense. dollar strength normally associated with higher rates. and there was an uncomfortable

feeling for many of the loans in the market under 175 anyway. but the big question is, is bill gross right? is the bear market over -- or, excuse me, is the bull market over? and to me, the answer is impossible unless you know whether the fed's programs are over. >> what about investing in this program today. john, how do you want to be exposed here? would you put new money to work today? >> absolutely. i think it's hard to be very bearish here, because there's very strong forces at work that are going to probably push stocks higher over the next coupling months, over the next coming years. the most widely discussed is fed policy, and now we have the piling on stage from japan, bank of england, ecb. and that's going to continue. i mean, rates may go a little bit higher here, but i don't think they're going to go a lot higher. secondly, you have people talking about bonds, the great rotation from bonds to stocks. but what i see in my own clients

is a great rotation from cash to stocks. we're finding that our clients are finding these pockets and stashes of cash that they now want to put to work. and finally, you have corporate earnings, which i know they've settled down from the huge pace that they had early in this bull market, but we're seeing from corporate buybacks, the shrinking of the markets, the kickup in the earnings per share. and also, they're benefitting from this cost cutting that just seems continuous and never ending. and we see that again from this quarter's results. we have what looks to be a 5% earnings gain, but off of a zero percent revenue growth. so these forces that are affecting the market aren't connected to the economy. they're forces that are directly impacting the stock market itself. >> we will leave it there. thanks very much, everybody. really appreciate your time today. want to get to josh lipton with a quick market flash, in a market that's pretty flat, you've got some movers going on. >> some headlines here on actavis, the generic drug maker. actavis confirming those reports

that we saw earlier today that, indeed, it is in early stage discussions to buy specialty pharmaceutical company warner chilcott. actavis also saying, though, no agreement has been reached and that it would have no further comment on the talks. warner chilcott just resumed trading. it tripping higher want 28%. guys, back to you. >> thanks so much, josh. we are in the final stretch for the week. about 50 minutes before the closing bell sounds with a mixed market. dow industrials trying to go positive. but so far, looking at a fractional loss. ty? >> maria, espn could be planning some big changes that may have a big impact on television and maybe will even help you pay for your monthly cell phone bill to make it happen. that story, coming up next. and are you missing out on the rally? what has 48% of americans sitting on the sidelines of this market? we'll find out that, plus the best places to jump in now. >> and today's release of "the great gatsby," the film making people think about the roaring '20s. later on, we'll show you the similarities and the differences

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good news. if you're tired of sky-high cell phone data bills, espn may be thinking about paying for part of your data plan. julia boorstin explains. hi, julia. >> hi, tyler. that's right. espn is in talks with mobile carriers about the possibility of subsidizing data, so espn subscribers can watch more mobile video without paying data overages. espn won't comment, but it does make sense, considering the big popularity of espn's mobile app. espn now has 45 million digital users, 16 million that access espn content exclusively through mobile devices. so espn wants to make it easier to stream more video. now, espn cashes in on mobile video ads when people watch more, and if mobile access to premium content comes with a cable or satellite tv subscription, it would help justify the hefty monthly bill. now, this could also be a way

that espn is strengthening its relationship with consumers ahead of new competition from fox's new national cable channel, which is launching later this year. this first step towards media companies sharing data costs with customers would be great for mobile carriers like at&t and verizon, giving them a second revenue stream. the deal is far from done, and one looming question is how regulators could view this kind of deal, which could raise concerns about espn content getting priority service. maria? >> julia, stay right there. we want to bring in jay darrow, who has doubts about this plan, good to have everybody. thanks for joining us. jay, what's the issue here? you say if espn went forward, this would create a big mess across the board? >> how does espn make money? they make it by going to time warner and saying, give us money to carry espn.

and now all of a sudden they're going to go to verizon wireless and say, we're going to give you money? that seems like a flip and seems like it's going to create all kinds of headaches and negotiations and all sort of strange contradictions within their business model and what works for them. and secondarily, there is net neutrality, there is an idea about prioritizing access to certain companies and if you have start-ups that want to come or different apps that use different levels of bandwidth, how are they going to react with espn? >> tuna, what's your take on this, and do you think there's a regulatory concern that jay just pointed out, that the ftc may say, hey, the being guys can afford to subsidize your broad band charges, but this is going to squeeze the little guys. >> first, to your question on regulatory, i don't think the regulatory concerns are as much on the fixed -- the wireless broadband side supposed the fixed broadband. so that, i think, reduces the regulatory issue. but i have to disagree with the last answer.

i think that espn, given the brand extensions that they have, they've been, you know, an innovator on the mobile platform. this is a platform that pays billions of dollars to the sports leagues every single year. and yet the opportunity for the mobile advertisement is pretty much untapped at this point. you know, think about the measurement issues, the industry seems to be getting closer to measure this. so there's all kinds of incentives, i think, as to why espn might consider, you know, this to be the opportune time to leverage this huge brand. i might also add that if you remember, about five or six years ago, espn had experimented with the model that they shut down, and i think that experience really taught them a lot of valuable lessons that can come to bear in this particular, you know, experiment. >> so, julia, what are your sources saying? how close are they to actually doing this? >> well, maria, i think that these talks are very preliminary. but i think that it very much makes sense that they're having these conversations, and i think they'd like to figure out if it's possible to get some sort

of deal done. and i think tuna made a very good point when he talked about mobile advertising. mobile is one of the fastest-growing advertising categories that there is right now. espn really wants to be able to capitalize on that. and at the end of the day, espn is only going to continue to be as successful as it has been, if they can make sure that people keep on paying their cable bills. and with the rise of so many digital options, they want to make sure if you want to watch content on your smartphone or your tablet, that you're doing it through espn and that espn is going to benefit from that. what i expect to happen is this to be part of a tv everywhere world. where i pay my cable provider, and they make sure i get access on multiple devices. and that's the way you get people from cutting the court. >> but that's how it is right now for espn. >> a lot of these deals have been redone, renegotiated to include lots of different distribution methods. >> that's absolutely right. i think espn in every single deal that they do now with the paid tv providers, they are able

to bundle these rights. and i think the data really shows that, you know, viewers actually take to these kinds of rights and these kind of mobile devices. smartphones, tabletablets, the explosion in all these apps. i think if you look ahead, the traditional television viewing is declining, whereas mobile viewing is accelerating, as well as online. and when you think about the dynamics of the data caps, which is another issue out there. you know, this is raising the kind of, you know, the wire-line industry, for example, is moving towards that. the wireless, you know, i think verizon and at&t already have the caps in place. i think this really speaks to the urgency, to really figure out a way to make money. >> so, jay, this feels like a bit of a game changer to me, or potentially a game changer, in that espn would be paying a little in order to get viewers to watch a lot more and then they could make a lot more by selling advertising, based on those mobile viewers. many of whom, they're watching

on their phones, they're watching on the broadband connection, not over the wireless connection anyway. >> well, i would just say, first of all, mobile advertising may be growing very strong, but it's still a very tiny market. and the thing that made espn really strong, a really smart business, is that they had two revenue streams, right? they had subscription fees that came from cable carriers and then they had advertising. and now on mobile, it's going to be just advertising, which, again, it is growing, but it is a very small market. and right now, in terms of tv everywhere -- >> but i guess -- >> i was going to say -- >> i was going to say -- >> -- already have with espn. >> but i think that they'll be tapping into that. they'll be using the subscription fee to make sure that's really valuable. if you're already paying a subscription fee, you want to be able to watch a lot more content on your mobile device. i think this is about maintaining that dual revenue stream. it's just mobile ads and your cable subscription as opposed to traditional tv ads and the cable subscription. >> i would just say that you've already have this.

you have this on your smartphone right now where you can watch espn. and i don't have the numbers, but how many people are out streaming espn, out in the wild on a cellular connection. you a lot of times will be on wi-fi watching it, because the signal is better, the quality of the image is better. and also when you're on wi-fi, you're probably closer to the tv. i understand they want to protect and go to where people are going, which is mobile, but how many people want to watch 5 inches -- you know, 5-inch screen of espn versus the 46 -- >> well, i did. i watched the ncaa tournament in a car via my espn -- >> how much of the tournament, though, an hour, two hours? >> it's still indicative that people will pay, and if there's a high-interest event. folks, i'm sorry, but we've got to leave it there. >> thanks, everybody. >> we've got about 40 minutes before the "closing bell" rings. the dow fighting to get back into green. the other two are marginally higher. >> take a look at these two stocks, ty.

priceline trades at more than 6 $760, while rival expedia trades at 60 someone here says that priceline is actually the cheaper deal. how you can maybe catch in on rising prices at the pump. that and more, just ahead. oh, he's a fighter alright. since aflac is helping with his expenses while he can't work, he can focus on his recovery. he doesn't have to worry so much about his mortgage, groceries, or even gas bills. kick! kick... feel it! feel it! feel it! nice work! ♪ you got it! you got it! yes! aflac's gonna help take care of his expenses. and us...we're gonna get him back in fighting shape. ♪ [ male announcer ] see what's happening behind the scenes at ducktherapy.com.

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♪ that's not much, you think. except it's 2% every year. go to e-trade and find out how much our advice and guidance costs. spoiler alert: it's low. it's guidance on your terms, not ours. e-trade. less for us. more for you. the nasdaq up about 22 points, hot once again, and once again outperforming the broader

blue chip market. seema mody has the details from the market site across the river. hi, seema. >> that hnasdaq's shares higher maintaining that 3,400 level. tech definitely not as strong as the last two weeks, but a gain. eyes on apple says that talks with the major record labels for apple's iradio have stalled. and amazon may be diversifying their product portfolio as it looks for ways to compete with the likes of google and apple. they're developing a high-end smartphone with a 3-d screen. and nvidia reporting 2.62% year over year. its graphics processing unit, computing division, in particular, saw strong growth. you can take a look at nvidia, that stock leading the rally that we're seeing in the semiconductor space. this sector as a whole, maria, has gained about 20% year-to-date. back over to you >> seema, thank you very much. meanwhile, it is a tail of two online travel giants. priceline shares hitting a

52-week high today, new 52-weak high after beating earnings expectations last night. meanwhile, rival expedia has had a rough trip so far in 2013. the stock is down better than 4% year-to-date. both stocks were at high pe ratios. which could be better for your portfolio. with us is richard roth, global technical strategist and on the fundamentals, enis taner, riskreversal.com. thanks for joining us. rich, how do those charts look? >> we have two different stock charts, but the same recommendation, unfortunately. i'd be a seller of both. let's pull up a that priceline first. and you'll see the stock has been a real strong performer, testing at an all-time high on the heels of those nice earnings. but we think those earnings are likely to be the capstone of the moou move. let me tell you why. look at that sinister top of resistance in 2012. and that comes in early may. last may we had a 28% decline,

within the next three months, after that may peak. you want to be a seller into that strength. now we look at expedia, probably the stronger sell here, because the stock is already going down. it's off 20% from the highs established earlier this year. more importantly, you've taken out a well-defined 18-month up friend and the 200-day moving average for the first time since december 2011. poor relative strength, and the break below that key support. you're a seller right here. >> enis, what's your take on the fundamental side? >> i would say the charts reflect the fundamentals in this sense. expedia has been really weak so far in 2013 because its business has been losing to priceline. priceline express deals has dominated hotwire in the u.s. specifically. that's why you saw expedia drop off while priceline's rallying. priceline has done a very good job of bringing its a-game in 2013 after losing in 2012. i would argue with rich that the priceline is not a double top as long as it doesn't go back down

from here. and in fact, it could be breakout all-time highs imminent. >> all right, well, this is certainly a debate, because some people feel that priceline is just way too expensive. >> it's interesting, maria, on the fundamental side, in terms of valuation, i think that's one concern, but priceline is 25 times earnings, growing 20% a year based on their guidance today, whereas expedia is projected to grow 5 to 10% a year at a similar valuation. i still don't like expedia on a numbers to numbers basis. >> and on monday, look for talking numbers inside street signs in the 2:00 hour, right here on cnbc with brian. ty? >> oil and gold prices taking a big hit today as the nymex bumps higher. >> we certainly did see gold take a huge hit and oil too. gold was down as much as $50 earlier in the session, it's recovered some of those losses, but there's still a lot of weakness and weak sentiment in

that gold market. bank of america saying we could see gold prices short-term as low as $1,200 an ounce. in terms of the oil market, we've saw wti oil futures just above the $93 mark, down nearly $3 at the lows of the session, and though it has recovered, nearly all of those losses right now, only down fractionally at the moment. traders tell me that bp refineries should be closely watched. there's some chart that we may see that restart of operations there sooner rather than later. and that, of course, would take a lot of that abundant supply we have in the midwest out of the market. so john kilduff again says that may be one of the reasons why we've seen oil prices come back a bit at the end of the day. back to you. >> sharon, thank you so much. we've got a market that is mixed here. the dow jones industrial average down about nine points, but the s&p, right now we're showing a gain, a fractional move on the upside. >> maria, maybe this is shocking, maybe it's not so shocking. but the percentage of americans who own stocks has now fallen to the lowest level since 1998, and

even lower than before the 2008 crisis. so why are retail investors still gun shy about the stock market, despite this historic rally? we're going to get into that important issue in a moment. and titans unite. some of wall street's biggest names rushing to the defense of jpmorgan chairman and ceo, jamie dimon, ahead of a shareholder attempt to separate those two roles. that's coming up on "closing bell." tdd#: 1-800-345-2550 when i'm trading, i'm totally focused. tdd#: 1-800-345-2550 tdd#: 1-800-345-2550 and the streetsmart edge trading platform from charles schwab... tdd#: 1-800-345-2550 gives me tools that help me find opportunities more easily. tdd#: 1-800-345-2550 i can even access it from the cloud and trade on any computer. tdd#: 1-800-345-2550 and with schwab mobile, tdd#: 1-800-345-2550 i can focus on trading anyplace, anytime. tdd#: 1-800-345-2550 until i choose to focus on something else. tdd#: 1-800-345-2550 all this with no trade minimums. tdd#: 1-800-345-2550 and only $8.95 a trade. tdd#: 1-800-345-2550 open an account with a $50,000 deposit, tdd#: 1-800-345-2550 and get 6 months commission-free trades. tdd#: 1-800-345-2550 call 1-866-294-5412.

welcome back. this market has been on an incredible run since the march 2009 lows, but fewer americans are actually benefiting. a new gallup poll today says that just 52% are invested in the stock market with the sharpest decline coming from middle income americans. that's down to just 50%, when five years ago, it was a full 66%. >> so, maria, why are average americans not participating and what, if anything, can change that? offering their take, patricia powell, president of the powell financial group, and cnbc contributor ron insana. welcome to both of you. patricia, what is your hypothesis as to why so many people have pulled out of the market? it's not just individual stocks we're talking about here. we're talking about mutual funds

as well. >> i think it's a variety of reasons. i think, actually, you have to ask the question a little differently. the miracle is, why are 52% actually in the market, given what they've come through. if you think about it, this survey goes back to 1998. that was the year that we got the long-term capital funding problem. you had the 2000 debt dot-com bubble bursting. you follow that with the economic fallout of 9/11 followed by enronitis. you're just getting your balance back and get hit with the 2008 economic debacle. and the fact that we're getting to all-time highs, people are still in shell shock. i think the miracle is you still have 52% that have confidence enough to have it in the maria? >> what is it going to take to get that confidence back? obviously, things like the flash crash, down a few thousand points back a few years ago. or even more recently, some of the issues that have caused the market to react are also keeping them out, right? is there some magic bullet here to get people to trust this market again?

>> i don't think there's a magic bullet, but i think they are coming back. i'm starting to get calls in my office. do you think i have the right allocation? is it time for me to take a little bit more risk? we work off an asset allocation, where it's based upon their risk tolerance, so if somebody has a risk tolerance that they're middle of the road, they're not going to have 70% in equities. and now they're rethinking that. and that hasn't happened since 1998. so i'm pretty comfortable that something tease going to happen. >> at what point, ron, do investors get back in? and i suspect your answer will be the ron point. >> there are periods when the crowd is right. and i happen to think we're in the beginning stages of a secular bull market. we've been in a secular bear from 2009 to 2008 and 2009. and the market's come back and the first gains particularly go to the professionals and then people start to catch on. whether or not retail come back with the same force and vigor that it had in the early '90s and 2000s, if you go back to the 1968 mutual fund mania, where we had a peak in stock market

participation by individuals, that was the last big -- >> the go-go years. it could be a structural, generational phenomenon. but hopefully, they're not going to miss out on this. there's so much going right in the u.s. economy right now, that they could be benefiting, even after this big rally from some very, very big strong themes that are playing out in the economy. >> so it takes education. you've got to be educating folks as to what's driving the market and why it's important to actually participate in what we're seeing. >> as you well know, i started talking in 2009 about, you know, one of the biggest operational opportunities in stocks and raereal estate, with the fed takes rates to zero. but it doesn't get you passed the shell shock. people weren't once burned, they were twice burned. hopefully they'll find a way to leg in, to average in, to not do things precipitously at this point, but really play out some

of the big themes, energy, manufacturing, things like that that will be long-term trends in the u.s. economy. >> so pat, pick up on what ron was just talking about, which is the idea that we may be really in a sec ewe long-term bull market, abetted in this case by the fed, by the ecb, by the bank of japan. >> i think that's what they're going to take. i think we're at the gbeginning of a secular bull market. >> doesn't mean stocks won't go down. >> absolutely, they'll go down. but i think people can get into more of a normalized look at the markets. they'll go through corrections and bear markets. but we lost over 50% -- 50% is a good number for us to use, both in 2008 and going into 2009, and in the 2000 to 2002 bear market. that's huge. a typical bear market that we might go through would be normally 20%, 25%. something much more manageable. and remember, in 2008, everything lost money. stocks lost money, bonds lost money, commodities lost money, your house lost money.

people are lacking -- the only place to have money was in cash or in treasuries. and even some of the money markets didn't work, if you remember the reserve funds. people are now just crawling out. and if we're at the beginning of a secular bull market, they have time, they have time to start creeping in, a little at a time, increase your allocation, see how it goes, increase it again, see how it goes. >> and tyler and maria, it's a good time, as it was in 1998, if someone started -- and bob farrell at merrill lynch made this point along with several others at the time, if you started to pare back your exposure to stocks in 1998 and move into fixed income, you would have kept your gains and moved on to make more profits. and just the reverse is probably true now. if you start edging out of fixed incomes or into equities and equity proxies, you could probably have the same appearen experience. >> ron, patricia, thank you so much. have a great weekend to both of you. >> thank you so much. >> hope you're right about that long-term bull market. not that we're rooting or

anything. all right, we've got about 18 minutes or so, 20 minutes before the closing bell. the dow with a small loss, the s&p and the nasdaq with small gains. maria? >> so dell already had a buyout offer on the table, we're at 1365 a share. why does carl icahn say his new $12 offer is better? a better choice for shareholders? it's lower. we'll explain the deal and hear from mr. icahn, next. and oh how the times have changed. american sugar and leather were the cat's pajamas back in 1922 when flappers were all the rage and "the great gatsby" is said to have taken place. coming up, we'll take a look at how much the dow has transformed since then and take a look at which stocks could be blue chippers for another hundred years. we'll be right back. we went out and asked people a simple question:

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meanwhile, the battle for dell heating up after carl icahn offered investors an alternative to the current buyout deal led by founder michael dell. kate kelly with details. >> it is a little complicated at first glance, but really it boils down to how much faith current shareholders have in the company's future. on the one hand, michael dell and the private equity firm silver lake has offered to privatize dell in a buyout that would pay shareholders $13.65

per share and take on $16 billion of new debt. on the other, carl icahn and southeastern asset management are offering a $12 per share cash or stock dividend, but maintaining a small public float and taking on a lower debt load of about $5 billion. icahn is arguing that, in fact, dell's investors would be preserved. that allows them to make money off dell's turnaround in the near future. in fact, icahn says using conservative math, the company could soon be worth $14 to $17 per share. it's comp rational to hp and other stocks in that class. the icahn letter has pushed up to maybe above $13. his move is a little ironic, because the structure he's proposing, known as a leveraged recapitalization, is often employed by company management as a shark repellant against

unfriendly takeovers. in this case, maria, icahn's the outsider, but he may be offering the friendlier deal offering traditional management tactics. >> really interesting, kate. i can't believe this is still going on. >> oh, i know. it's been going on since february 5th, when the michael dell/silver lake offer was first put on the table and the company has gone along with that. of course, you know blackstone was seriously considering that but then backed off because of deterioration in the pc space, which, by the way, is quite pronounced. year over year for the first quarter, a decline of 14%, worst in pc industry history. there is a real trend going on there and there's sufficient cause for concern. but at the same time, you now have two horses in the race, you might have more of a floor for the stock, and who knows, maybe even a third party will come on board. >> we'll see. kate, thanks so much. we are in the final stretch of trading for the week. we've got about 15 minutes left before the closing bell sounds and take a look at what has happened. the market now positive here. the dow jones industrial average reversing course and trading up a fraction. >> despite the market's huge run-up in recent weeks and

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and the market continues its run higher for 2013, yet despite all the gains we've seen, jpmorgan funds' andre armaya says that's still the bes place for investors. >> we bring him in, thanks for joining us. what do you think? in terms of being exposed to this market, andres, you kick us off here. where do you want to be? >> sure, i think the trade continues, which is, where else are you going to be? are you going to be in cash? are you going to be in fixed income? that doesn't look very much appealing. if anything, i think people com income market. >> yet in your weekly note, david, you point out some of the bearish factors out there.

gdp growth not keeping up. you also talk about ongoing concerns about profit margins. >> we think only 1.2% after the 2.5% for the fourth quarter. however, you have a bear market checklist of six things. is the fed tightening? no. is the recession on the horizon? no. are bond yield spreads widening? no, they're narrowing. are banks, transportation stocks, and small-cap stocks taking bullets? no. are valuations stretched? no. and is investor euphoria present? no. as you know, maria, you've had 4 1/2 years of continuous outflows from equities. we've had only four months of inflows. . so when we say, cookies are passed, take cookies, and realize this will not go on forever. we've been up 12 of the last 14 days, as you pointed out on the show here. so you want to basically be defensive, still be defensive, health care, consumer staples. but you could start to nibble at

some of these tech stocks that have lagged behind, and industrials. we're talking about 3m, you're talking about baker international, which is an oil services company. so you want to get some of these ten times earnings, sell some of your 20 times earnings groups. >> tyler? >> andres, i was going to ask you, which is the safer, which is the riskier place to be right now? stocks at all-time record highs or bonds where they are? >> i think the bonds are the dangerous place to be. they've been on a 32-year bull run. and if you look at flows, you mention flowed, $69 billion year-to-date going to fixed income, only $19 billion going to equities. sure, the equity markets are at all-time highs, but this last quarter was also the best quarter for earnings since we have the data. so i think at least earnings support the equity market. i don't know what supports the fixed income markets at these levels. >> tyler, you want to lighten up on your junk bonds, building on what andres has just sate, you want to lighten up on your junk

bonds and on your t.i.p.s.. both of these are extremely rich. you talked about equities being at all-time record high. also, emerging market bonds and high-yield bonds. high-yield bonds broke below the 5% market for the high-yield index, which means it's at an all-time high price, all-time record low year. high yield is a misnomer these days, within this middling, below 5% range. so you want to start to edge out some of those products and maybe switch over into some of the equity groups that we've been talking about here. with yield and growth in yield. >> gentleman, we'll leave it there. great conversation. we'll see you in a few minutes. thank you very much. andres, thank you so much. david, we want to send it over to josh lipton to get a quick market flash as we approach the close. josh? >> we're watching endo health solutions, that ticker, endp. that stock has been halted pending news. it took a nasty dooive around 30 p.m.. it swung to a first quarter profit on strong sales growth in

the generic section. that stock up about 33% this year. we'll get you more headlines as we get them. meanwhile, the white house is responding to news today that the irs improperly targeted tax-exempt conservative groups during last year's presidential campaign. john harwood now with the story. john? >> maria, i just stepped out of a white house briefing with press secretary jay carney, where he is dominated by questions about the benghazi public statements the administration made, but he also, at the beginning of the briefing, got questions abouts this irs revelation. basically what happened is last year the irs denied that it was singling out tea party groups for special scrutiny. today, the irs acknowledged that that had happened. jay carney said that this was inappropriate. he wants to see the irs make corrections. said there's an inspector general's investigation. he didn't add new information to what we had already heard about it, but this is an embarrassment for the white house, especially as these questions about the

public statements on benghazi are also dominating public attention, maria. >> so john, let me get this straight. during that heated, you know, presidential campaign, that we both covered, as so many other colleagues, basically, the irs targeted conservative groups and audited them, because they weren't voting for obama? >> no, no, no. it was not audits. these are -- >> investigations? >> no, not investigations. this was the -- went to the kind of scrutiny that applications for nonprofit status were making. and what level of scrutiny they got. >> so they got a higher level of scrutiny, then, because they were conservative groups? and they weren't voting for the president? >> well, not exactly. what the irs said today was that civil servants at the irs as a short cut for figuring out which

groups that were seeking a tax-exempt status, got sorted, that went with the names tea party and patriot were put into a bucket receiving higher scrutiny that may not have been justified. in some cases, it was justified by the nature of their application. none of the applications, according to the irs official who wrebriefed reporters today e denied. but it was acknowledged that it was inappropriate and wrong for them to put certain of these applications in a group receiving higher scrutiny. they said it was not for partisan or political motivation, but, of course, all that is going to go into how the public judges the credibility of the administration on this issue. >> how is it not motivated by politics if it's tea party and patriot? >> the explanation, maria, was that you get -- they had a surge in 2010 and 2011, of groups applying for tax-exempt status.

that those applications got sorted into different piles, if you will, according to how much scrutiny they were going to get. it had to do with the amount of advocacy that they were seeking to engage in and the irs was trying to determine whether or not they still qualified for tax-exempt status. as a shortcut, a civil servant at the irs looked at tea party and patriot applications and said, many of those fall into this category, therefore, we're going to take a closer look at them. >> got it. all right, john, thank you so much. john harwood's at the white house. ty? >> and the closing countdown when we come back. after the bell, the da vinci surgical robot may not be the master piece intuitive search was hoping for. our herb greenberg with an update of the investigation on this company. you're watching cnbc, first in business worldwide. my mantra?

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he's an architect with two kids and a mortgage. luckily, he found someone who gave him a fresh perspective on his portfolio. and with some planning and effort, hopefully bob can retire at a more appropriate age. it's not rocket science. it's just common sense. from td ameritrade. it's close, but it looks like the dow and s&p will close at record highs. matt cheslock, what does this activity in the last hour tell you about the strength of the market? very quickly, matt. >> i think we're just catching up to the nasdaq. we're starting to see some nice over-the-counter pharmaceuticals performing very well, focused on retail sales for next week, cci and ppi, and watch the home sales for next week as well. >> matt cheslock, thank you very much, as we look like we've turned positive here in just the

last few minutes on the dow. looking again, as i said, it's going to be a close photo finish, but probably record highs for the dow and the s&p. the bell is ringing to ring out the week here on wall street. i'm tyler mathisen. bill griffeth will be back next week. stay tuned for the second hour of the closing bell. maria will bring it home from here. and it is 4:00 on wall street. do you know where your money is? hi, everybody. welcome back to the "closing bell." happy friday to you. i'm maria bartiromo. the market closing out the third straight week of gains. the dow and the s&p 500, another all-time high this friday afternoon. check it out. the dow jones industrial average tonight, up 32 points, about a quarter of a percent, at 15,115. an all-time high. the nasdaq composite picks up 27 points. technology was in the lead all day today, up 27 points. and the s&p, new