we're out of time today, but tomorrow, a very cool story on ebay, coke recipes. it's very juicy, indeed. >> thanks for watching "street signs." coming up next, the "closing bell." if it's tuesday, it must be rally day. i'm bill griffeth here at the new york stock exchange. after that one-day hiatus, we're back to the races. >> currently on pace to be the 18th tuesday this year into the green. >> incredible! >> welcome aboard, by the way. >> thank you, thank you. i'm kayla tausche and i'm sitting here in place of maria bartiromo who's on assignment today. we have a big show. the stocks rocking again. the stocks on pace for another new record. and comments here on cnbc giving some reason to think there's a lot more to go in this rally. if you didn't think that we were going to keep rallying, you have to listen to what tepper said

here. we'll have more from what he said, and many investors still licking their chops. >> yes, they are. the banks are helping to lead this rally. morgan stanley ceo james gorman facing scrutiny today at his shareholder meeting. and one week from today is the big one. that huge vote that potentially could separate for jamie dimon the chairman and ceo-ship there at jpmorgan chase. >> and what the bank is doing leading up to that too. and the white house battling scandal politics. eric holder ordering an investigation into whether criminal activity took place at the irs. there's also the scandals involving benghazi and seizing phone records of reporters, namely the associated press. it seems the list goes on. but if all of this is consuming washington, is there any oxygen left for things like tax reform and immigration legislation? is that good or bad for business? a live report on all of that from washington.

>> feels like election year. here's how we stand. it was off to the races from the get-go this morning. we've hovered near these highs of the day for much of the afternoon. dow was up a hundred points a to the high of the day. up 83 right now at 15,178. the nasdaq is trading higher, even though, interestingly, apple is down 2.5% today. we're still trying to figure that one out. but the nasdaq is up 15 points right now. still in a 12-year high. and the s&p also in record territory, as is the dow. now the s&p up 12 3/4 points. shelly villry is with us, michael yoshikami as well as jeff cox from cnbc.com and our own rick santelli. welcome to all of you dapper-looking guys out there. sandy, we just keep going higher here. >> keep going higher. but if you look at it, the market is still cheap. we're 14.5 times forward. the medium over the last 20

years is 16.6 times. i think there's still of room on the upside. a lot of cash sitting on the sidelines. a study by schwab said about 26% of their clients had money in cash. >> last week we saw the first positive week for equity inflows in i believe eight weeks. we're still waiting for data tomorrow. but when i talk to traders, they say, most of that is still coming from cash. have we seen that rotation start at all? >> we've had a trillion dollars come into bond funds over the last five years. 650 billion come out of kt funds. so 40, 50 billion have come into equity funds year-to-date. there's still a lot more to come and people are still negative even though we're in the 51st month of a bull market. >> and we're all watching the fed like hawks as well, or doves, as the case may be. but how do you think they will handle this tapering issue of buying back bonds down the road and what the market will do about that? >> i think what they're going to do is they're going to stop buying bonds, but they're not going to completely unwind their

balance sheet. i think that's the important consideration for future inflation concerns. and as was just said, probably continue to drive the market. the fed does not have to continue to buy bonds to still have a significant impact on interest rates, particularly given the fact that we have europe, japan, australia, the rest of the world in this low-cost money orgy that we have going on with the monetary agencies. so i think the fed is going to very, very slowly unwind and even if you continue to see bond yield move up and i'm sure rick knows this better than all of us, bond yields on the ten-year certainly have moved up pretty significantly over the last week or two. i think there's going to be cheap money in the system for a significant period of time because of all the slack in the economy. >> i think that's probably the only time the fed has been called a low-cost orgy, but i'll let you take the credit for that one. you say that high inflation is probably a certainty at this point, but how do you position your portfolio strategy to actually account for that down the road? >> i think what you have to do,

you have to be pretty low duration. there's not really much benefit to going out on long duration fixed income at this point. and i think when interest rates rise, the long end of the curve is what's really going to get hit. i think if you're lower duration, maybe a three, maybe a four, and you have some high yield, even though high yield has rallied and the spreads are narrowing, and yes, a little international fixed income asset, maybe some prime rate floating assets, that's how you position your portfolio strategy in an environment where we're in the transition from low interest rates to potentially higher interest rates down the road. >> jeffrey, the record levels for these markets not lost on a lot of companies. we are seeing more companies come to market now, issuing shares to the public, aren't they? >> yeah. investors are being asked to do some heavy lifting here, bill. it's going to be very interesting to see how they respond. last week we saw about $13.5 billion of new issues come into the market. they were -- you know, the market's responding okay there, but you just wonder, you know, kayla made the reference before about, where is the money coming from. it's coming from cash.

some of that money is going to have to start coming from bonds. and it's just going to be, you know, are investors are going to be willing to kind of just keep taking up the supply that they need to keep pushing the rally higher? >> exactly. rick santelli, the yields holding at these higher levels, the dollar continues higher, the stock market is going higher. what else is going on here? >> i think japan, is where i would be aiming my sights. you know, yesterday, jgb closed at about 75 basis points at ten-year and today it closed at about 86. about a 15% move overnight. and i hate using percentages for yields, but in this case it's appropriate. if you just look at april 1st, we had a closing yield on a ten-year jgb at 40 basis points and it's now at 86. and while that's going on, their nikkei, like our dow, like the dax, has been going to the moon and if you look at their dollar yen, their currencies weaken to the weakest levels since early october of '08, and we are just

rife today with all the stories about tesla and elon musk is a business genius, but i'm sorry, anybody who thinks that a battery-operated car at that price, which is limited to 250 miles a day, is going to trade 200, that is the flowers.com event that would get me for the first time since '09 to at least contemplate that the dam is going to break and this game is going to end. >> yes, could be the tesla that drives us over the cliff there. thank you, gentleman. we have to move along. we have some breaking news coming our way in a little bit. thanks for being with us. yes, the dow is going for its 18th straight tuesday. again, this goes all the way back to january 15th, bob pisani, and we've been scratching our heads, looking for precedence on this. tough to find. >> i think you're going to have a hard time finding it for tuesdays. i was just at the charity event that raised money for charity. a terrific day. all the talk there is of this meltup. the s&p 500, they're just getting annihilated.

every day they're trying to find positions where they can buy into it with the market lower, but the market doesn't drop at all. meantime, the trend is continuing for this month, and that is the cyclic rally. energy, materials, industrials, consumer discretionary stocks continue to be the market leaders. why is this monitor? because this has not been the trend for most of the year. take a look at the cyclical versus the consumer stocks. there's that green line. that's the consumer names. those are your procter & gambles of the world. this is the year-to-date. they have been the big outperformers. steady on the jupside. and your cyclical names, they have been the choppy ones. but now that has been changing. and that's why this is such a big story. so here is this month, just the last ten days. that white line is the cyclical stocks that you can buy. the bottom line is the consumer names. it's reversed. so what i've been showing you every day these industrials and financials and materials, that's a noticeable change from earlier and a real sign of rotation in the market. that, of course, is healthy, but

it may be a sign people think the economy is picking up as well. by the way, in the next hour, i'll be showing you how you can play this cyclical rally using exchange-traded funds. kayla and bill, back to you. >> and we'll certainly look forward to that. meantime, there are new developments in the bloomberg breach from the bank of england. >> the bank of england making some of the strongest comments yet of any central bank or government agency when it comes to the bloomberg controversy. the bank of dplaengland saying,e protection of confidential information is vital at the bank. what seems to have happened at bloomberg is reps henceable. bank officials are in close contact with bloomberg, who have provided assurances to ensure that this does not happen again." bloomberg has not commented yet. the ceo said in a blog post over the evening, he said "since the news came out, my executive team

and i have personally reached out to more than 300 clients. we started each conversation with an apology for our mistake. we listened carefully and also explained the very specific and limited nature of the data our reporters were able to access." you can expect, perhaps, the bank of england to get that type of treatment. the bank of england joining the fed, the extra bank among the agencies concerned about the data breech. >> it's interesting to see the word ""rep henceable." >> it's a good idea as to why they decided to put some kind of pejorative term in there about this. everybody else was neutral in that regard. although not everybody else was neutral in background on that record. i'll just say publicly, for the bank of england to go that far. maybe a little bit more sensitivity with the phone hacking scandal in london, with news corp.

maybe that was an issue. maybe they don't feel like they need to pull their punches in this regard. >> well, it's clear that the europeans are being much more aggressive on privacy issues, aren't they? >> i think that's right, bill. maybe we're a little enured here in america to the notion that big brother is spying on us. i don't know the answer to that. but i also think, bill, that big issue here is that the bank -- the question here is whether or not the bank of england knows more about the kind of information that was seen by bloomberg. and again, one of the things i think we're waiting for, a big question out there is does bloomberg feel like it needs to do more in terms of disclosure? so far, really, the clients have dictated in some cases the ethics at bloomberg. if you think about the tale of the tape here, it wasn't until goldberg said what bloomberg was doing was wrong that bloombergeneded upeneding that practice. >> it's an interesting debate, and a private company doesn't have to disclose a lot of that stuff, even though it's a regulated entity on the trading

side. so do you think that we'll see private companies like that to have to start disclosing. >> as a journalist for 25 years now, i don't care that it was a private company. i think the ethics of a news corporation are different from those dictated about whether or not it's private or public. >> and one last point, the whole reason we care is trying to ferret out how much bloomberg was or was not competing with their own customers in this regard, right? >> i think that's an issue and there are a whole bunch of issues out there in that regard. and i think there's a question about how much disclosure we get from the government about their communications with bloomberg. and i think that it doesn't just end at the journalism question, bill. i think there are questions about the back office and the rest of the operation there and what kind of chinese walls there are at bloomberg. >> more to come. thanks, steve. >> sure. >> see you later. we have some big news on the u.s. deficit right now. john harwood is in d.c. with details on that. john? >> bill, i want you and kayla to brace yourselves, sit down, our viewers too, because this is

shocking. there is some good news coming out of washington and it's contained in this cbo report. a new estimate of the federal budget deficit. it's now $200 billion smaller than it was estimated just in february, $642 billion is the projection for the current fiscal year. that's 4% of gross domestic product, which is less than half in both dollar terms and percentage of gdp than it was in 2009, the first year of president obama's presidency. this shows that because of better than expected revenue, slower than expected growth in spending, in part because health care costs are slowing, the deficit is going to fall to 2.1% of gdp in 2015. so, we've had a lot of concern that we've discussed for years about the size of the u.s. deficit. it is now coming down pretty rapidly, bill. >> you know, it's symptomatic of our new normal here. we consider $3 gasoline cheap and we think $642 billion deficit is low. >> but as a percentage --

>> you know what i'm saying. >> yes, i do. but the historical standard -- >> john, does that mean that the gdp is expected to shrink -- >> what's that? >> when we talk about these percentages as a function of gdp? what is gdp expected to be? still pretty low historically. >> yes, but i'm talking about the deficit as compared to the size of the gdp and historically, the administrations have tried to keep it in the 3% range over, you know, a period of the past 40 years. it's down to 4 now. according to cbo, it will be under 3 in 2015. so it is some good news, at least for the moment. >> we will take it. thanks, john. see you later. and the markets continue higher. we're almost back to the highs of the day here with the dow up 93 points. we've got about 45 minutes left in the trading session. >> not far away. we hit three digits in gains for the dow, hoping to get back there by the end of the close, but still not a bad performance

for a tuesday. and the heat is cranking at jpmorgan. shareholders are set to vote for or against splitting jamie dimon's chairman and ceo roles, but dimon upped the ante, saying to investors earlier last week, he'd consider leaving the company if those roles were split. coming up, our experts on what may happen next week. then the nfl and the nba are making sure they get the most out of you with a little help from software giant sap. coming up in a cnbc exclusive, we'll ask the co-ceo of the company about that, plus why he thinks the cloud start-ups don't scare him one bit. that and much more when kayla and i come back on "closing bell" for this tuesday. bny mellon combines investment management & investment servicing,

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welcome back to "closing bell." morgan stanley ceo james gordon on what was supposed to be the hot seat at the company's annual meeting today, but things ultimately went his way. here with more, mary thompson from purchase new york. mary, good afternoon. >> hey, there, kayla. you know, as you said, the hot seat wasn't so hot for gorman, but he did say that the board has been holding his feet to the fire when it comes to improving a key measure of profitability,

that being return on equity. now, during the meeting, gorman said that cutting costs and growing revenue would be critical to improving roe and he targeted an roe, or return on equity, of 10% by 2014, a level that's still below the one posted by morgan's closest rival, goldman sachs, in the first quarter. the banks' lead director, bob kiter, also talking about roe. he got up and answered a few questions during the meeting. he said that improving roe is the first and foremost job of the board. he says directors are always asking themselves if they're doing enough with the businesses that are keeping the roe from going higher. for analyst, mike mayo, gorman's comments as well as those from kiter, were reassuring. >> that was very reassuring for the meeting. the focus on the return on equity. and if they achieve their target by 2014, i think this stock could go a lot higher. this is one of my top ideas in the bank space. >> now, some of the other highlights from the meeting. all of the directors were

re-elected by a high margin. all of the proposals that were put forth by the company, there were no shareholder proposals, passed as way. the say on pay getting 86% of the vote. gorman also talked about the regulatory environment, saying that higher capital required by the banks would impede the economy, because it would hurt lending. and he encouraged regulators to get through dodd/frank first before imposing new capital rules on the banks. and speaking of capital, gorman told a scrum of reporters after the meeting that he hadn't spoken to the board on what he might do about returning capital to shareholders. keep in mind, the bank wants to get through the acquisition of the 35% of the wealth management business out doesn't own before it starts talking about dividends and buybacks. but gorman did say that as it stood right now, buybacks might be more preferable than dividends. back to you, bill. >> mary, thank you very much. another banking ceo who is definitely feeling the heat is jpmorgan chase's jamie dimon, who has said privately, even though we know this, that he may leave if shareholders vote next

tuesday to split his dual role as chairman and ceo of the company. >> and here to discuss how this ultimatum may ultimately play out, we're joined by jessica pressler of "new york" magazine, and we have aaron task of yahoo! finance with us remotely. aaron, i want to start with you. this is sort of a new argument that we're hearing come out in the past week, that, you know, before it was, okay, this role could be split. now it was, do you want jamie dimon at this company at all? a vote of no confidence, so to speak. do you think that that turns the tables on how this vote will actually turn out here? >> well, it definitely changes the conversation, kayla, and if it's true, i do think it would swing the vote in jamie dimon's favor. but i also think it suggests that he thinks that he is the indispensable man and he believes the press clippings, at least the press clippings that he's the world's best banker and that jpmorgan can't survive without him. >> do you think it can, aaron? >> yeah, i do, absolutely. i mean, i think that we've seen, since 2008, that nobody's indispensable and nobody is

without flaw. and jpmorgan is, you know, a huge, unwieldy institution and maybe jamie dimon is one of the best people in the world to run it, but that doesn't mean he's the only person who's able to do it. and, you know, his track record isn't so spotless. i mean, we're talking about the london whale trade, but they had $8.5 billion of regulatory settlements between 2009 and 2012, which is about 12% of their net income. >> and he's one of the legacy ceos from the crisis who is still in his job today. jessica, you got to spend some time with mr. dimon last summer. you wrote an caller and asked him the question, did he ever consider resigning and he said, no. people in companies will make mistakes. i guarantee we'll make a mistake next quarter. so what? businesses make mistakes, hopefully smaller and fewer. unfortunately, they've made a few more mistakes during that time. but how do you think this unfolds for him? >> i think one of the things that we really liked about jamie

dimon during the crisis and one of the reasons that he was sort of elevated was that he seemed like this very reasonable person. and we haven't seen that from him in a long time. he's sort of become unreasonable. and this whole now threatening to leave because of this largely like titular change, it seems not only not becoming of a ceo, but not adult in a lot of -- >> he's saying, i'm going to take my ball and go home. >> and has it impeded his effectiveness as a ceo? >> i think this whole thing is about his ego. i don't know why he cares so much, quite frankly, about the chairman title. it's really just optics. he can't take the fact that hays not totally beloved anymore. >> i know there's one thesis that when a new ceo would eventually be appointed to secede him, he would like to take the chairman role on as sort of an emeritus-type job. aaron, do you think if he has to

cede the chairman role or both roles, do you think that eventually rules him out as being chairman of jpmorgan chase at a later day? >> in a normal role, if they were to split the roles and in a few years groom someone to take over the ceo, he could then move into that role as an emeritus-type chairman, but as jessica said, i think he's being very childish. this is sort of the attitude of like, i'm taking my ball and going home if we're in the going to play by the rules i want to play by or you don't let me play whatever position i want to play. and it is very unbecoming for one of the world's leading executives to take this attitude. and this is all hearsay. we don't foe for sure that jamie dimon is saying i'm going to quit if you take away the ceo title. >> but chairmans hate to work from a position of perceived weakness. we'll know next tuesday what happens. we're heading towards the close. about 35 minutes left in the trading session. still up 90 points, the 18th consecutive tuesday that the dow has been higher this year.

>> there's something about tuesdays. i don't know. maybe everyone just wakes up on the right side of the bed. meanwhile, we'll be talking about yahoo! the comeback kid of the tech world, since ma rissa mayer took over last summer. next, we'll take a look at this red-hot stock has come too far, toofs. we went out and asked people a simple question:

how old is the oldest person you've known? we gave people a sticker and had them show us. we learned a lot of us have known someone who's lived well into their 90s. and that's a great thing. but even though we're living longer, one thing that hasn't changed: the official retirement age. ♪ the question is how do you make sure you have the money you need to enjoy all of these years. ♪

welcome back. yahoo! shares skyrocketing 70% since marissa mayer was named ceo last july. the stock had essentially been flat for three years before her

arrival. we have jon fortt at the comeback kid's headquarters in -- well, we will have jon eventually. >> look at the chart. you can see the stairstep move higher that this stock has had. it was essentially dead money as they had a number, a revolving door for the ceo job and directors and things. and the stock had just been lackluster for a number of years and now, suddenly, after she took over -- >> bumbling around the $15 mark. >> all they needed was some direction, i guess, of some kind. the question is, is yahoo! a buy as a comeback story? let's start talking numbers. we should note that yahoo!'s finance is cnbc's production partner for the online version of talking numbers. and on the technical side on this issue, rich ross is with us, and on the fundamental side, steve cortez. good to see you, guys. welcome back. rich, was us through the charts. what do you think? >> bill, i underestimated this stock once. i'm not going to make the same mistake twice. when we bring up that daily chart, as you just did before,

you see that the stock is a rock. it's been barreling higher, hugging that 50-day moving average, acting as key sport all the way up. now we see this well-defined trend channel taking us higher. now we're into some resistance at the high end of that trend channel, but a nice, bullish flag has formed into that high-end resistance. i think we get an acceleration to the upside out of that channel. we could test $32 in this stock. the market is viewing it in a different fashion and i'm looking at the chart in a different fashion. >> cortez is just itching to get in on this. >> i am. i can see that the stock has done incredibly well lately, but i think context and perspective is important here. if we take a longer view of yahoo! we can see that this is the longest reinvention story since "les mis." this stock is trading right now, even after this incredible rally, it's trading right now where it traded in 1998. back then, nick lachey was still in 98 degrees.

his band money from that band is still in the exact same spot now. there's a lot of excitement about marissa mayer, and really, this is an ali baba story more than anything else. so i understand that part of it. and i think there's finally a floor underneath the stock because of ali baba, but it's come a heck of a long way in a very short time and i think it's frothy. >> we're in a digital age, content is king, yahoo! has content and distribution and a rock-solid chart to boot. i think the fundamentals suggest there's still upside here. i hate to chase, but sometimes you've got to do what's right. >> we've got to go at this point. but thank you for your thoughts, one way or the other, on yahoo!. see you guys later. jon fortt, are you standing by there? >> reporter: sure am. >> there he is! okay. we were going to ask you to talk about yahoo! but let's move on to something else. because a lot of people have been wondering about, lately, larry paige, the ceo at grade schooling had missed some very important public events in the last year or so, and there were questions surrounding his

leadership. but now we perhaps know why he'd been missing those events, right? >> reporter: yeah, we knew it was a voice issue and on google plus today, plugging his own social network, appropriately enough, he explained what it is. it's a paralyzed vocal chord. he had, he said 14 years ago, his left vocal cord was paralyzed. a few months ago, he had an issue where he had after a cold, a loss of his voice, didn't really come back. he went into the doctor, it then turn ed out the right vocal cor was paralyzed as well. after some recovery, he got a bit of his voice back, but it hasn't entirely come back. he's said it's made him a better ceo because he's had to choose hi words more carefully. at the same time, larry paige said that he's donating to medical efforts to figure out ways to help conditions like the one he has. but he says it's not effecting his ability to run the company, except, perhaps, if you take sergey's mention in a positive

way. >> exactly right. he said he can choose his words more wisely, now that he has fewer of them. thank you, john. about 30 minutes into the close, the dow up about 95 points. the s&p just up about 14 points. the nasdaq rising about 19 points, just heading into the close today. >> some buzz about hewlett-packard, whether or not it's been trying to sell its troubled autonomy software unit, maybe even trying to sell it to software giant sap. we'll go to the source on this story next when we speak exclusively with bill mcdermott. >> and blackberry unveiling another new smartphone, but should the company really be focusing on its app store which seriously lacks in the comparison to apple and google's android? that's later on the "closing bell." tdd#: 1-800-345-2550 when i'm trading, i'm so into it, tdd#: 1-800-345-2550 hours can go by before i realize tdd#: 1-800-345-2550 that i haven't even looked away from my screen. tdd#: 1-800-345-2550

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, well the dow is up 104, the high of the day, but the technology sector has been underperforming the broader market with apple leading that charge down, about 2.5% today. courtney reagan is at the nasdaq with more on that. courtney? >> hi, good afternoon, bill. the nasdaq may be began to perform, but it's still

positive, and if we close above where we were yesterday, that means we'll hit another fresh 12-year high. that nasdaq 100 also just points away from crossing over the 3,000 mark, which we haven't seen since november of 1999. but you did point out apple, actually an underperformer all session. and then about two hours ago, right around that 450 mark, we saw apple stock fall, and pretty heavy volume. a lot of traderi ins pointing t some technical reasons because of traders getting hit at the stops because of that 450 mark. there was also a note from david treanor out saying he didn't think the stock was sustainable. that had been out for some time. and last but not least, take a look at shares of tesla. a big talker today. shares had been higher and then reversed course, trending lower. but for the week, up more than 51%, actually gaining $4 billion in market cap, in just ten sessions. pretty amazing moves there. bill and kayla, back to you. >> it's amazing what reporting a profit will do for your stock for the first time in ten years, right? >> right. >> and on the apple story, when

journalists and traders can't figure out why a stock is doing what it's doing, it must be for technical reasons. >> it must be. it must be. it's breeching a level. i think the level was 450/50. >> 50/sounds good to me. sap is making some big and rather unusual changes to stay ahead of the technology world. >> joining us now in a cnbc exclusive from orlando to discuss those big plans is sap's co-ceo, bill mcdermott. thank you for being with us. you're in orlando for sap's annual sapphire conference. among other topics i'm sure is coming up, the big push that sap has for the cloud. you have seven global data centers. the big question is, as you move away from the software you can touch in your hands and is available in the cloud, how do you keep it safe? >> well, the big thing with sap is we have a long-standing history of security. so if you put sap in a private cloud environment, on the hana

enterprise cloud, that's an extremely secure environment. the system itself is secure, and you lay another level of security by putting it in the cloud. and that's secured in a very, very special way. so we can go in the public multi-tenant cloud or the private cloud, and our customers are going to get lightning speed and they're going to get to connect with their consumers, with total security from sap. >> but you understand the concerns about security. i mean, all these financial institutions in this country and elsewhere that have been hacked, these denial of service attacks that have gone on. i mean, where is all of this going and what are you guys doing to try -- are you trying to step up security as a result? can you ever stop it, you know, completely, these denial of service attacks, among others? >> hey, bill, you're absolutely right. security is one of the big things. and i gave an example today in my keynote, where a cto of a major bank actually has $10

million hack attempts against his systems per day. so you're never going to get away from the fact that there are bad actors out there and we have to protect the consumers, one transaction at a time. what we have done is take -- we've taken sap hanna, which is a real-time in memory database that has structured, unstructured, and social, and we can go through the credit card history of one customer, for example, a three-year credit card history, in less than a second. so we don't have people getting, you know, bad notices in the mail or transactions taking place. we stop it at the point of infraction. >> of course, bill, you never get credit for the crisis that you avert. that's one big problem. but i want to ask you the big will she/won't she question. i know recently there's been a lot of speculation about the future of the autonomy business at hewlett-packard. meg whitman has said repeatedly that it is not for sale. but there was a report over the weekend saying that you had been

approached about potentially buying it and you had declined. where are those reports coming from and what is the situation from your vantage point? >> first of all, meg whitman is a good friend of mine. and she and i never had such a conversation about autonomy. there was a reporter that incorrectly reported the news, basically, and essentially, my comment was, a long time ago, before hp ever bought autonomy, i was aware of the fact that the company was on the market and sap had passed on the company, because we had invented hana, which is the greatest in-memory database of all time. so there really wasn't a business rationale by which sap should move on autonomy. and subsequent to sap buying autonomy, there's never been a discussion between sap and hp doing a deal. i don't know where that comes from other than it's incorrect, it's not factual, and i'm here today to set the record straight. meg and i never had that conversation.

>> okay. it doesn't get much clearer than that. we're also talking about -- >> thank you, bill. >> -- the roles of chair and ceo. you're a co-ceo at sap, but what is your opinion about whether there should be even more shared responsibility in the c-suite. should there be a division between chairman and ceo at more companies? >> well, i think it has a lot to do with who the chairman and ceo is. you know, there are some great chairman and ceos out there that companies should feel very blessed to have doing both roles. and on the other hand, for board governance and compliance and the kinds of transparency reasons that are constantly talked about, it's not a bad idea to divide the role. >> but if you do it on a case-by-case basis, though, then if somebody doesn't get the chairmanship role, doesn't that make the perception out there that they're not strong enough to be chairman? in other words, if you have a rule that says, nobody can be both chairman and ceo, then

you've got an equal footing here. but if you say, well, it's case by case, then if you don't get the chairmanship, you're working from a weak base here? >> well, bill, i have to say, you know, we should all, c-level executives, we're working for our people, we're working for our customers, we're working for our shareholders. we shouldn't be working for our own self-interests. but i have seen chairman and ceos in the business community that i have deep admiration for, and i think they're highly competent and capable of handling both roles. i also am on the board of under armour, as an example, and the founder, chairman, and ceo is a guy by the name of kevin plank. and the shareholders, the employees, and the customers should feel blessed to have him doing both roles. so that's the way i see it. >> and that's why we asked. thanks, bill. >> yep. thank you, bill. thank you, kayla. >> co-ceo of sap joining us today. and the rally continues. >> and it does. now at the high of the day, 109

for the dow. >> 110 points right now for the dow industrial average. we had tradering co ins coming . really, 18 straight tuesdays? >> it seems unreal, but it is true. and we are at just shy of 15,200 on the dow. and at stake, the fate of columbia pictures, epic records, and playstation as an activist investor, shockingly, calls for an entertainment giant, sony, to spin off certain divisions. big story, one that broke overnight and we have that next. ♪

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welcome back to the "closing bell." we have the dow rallying into the close, up 115 points now. got some other big names in the market making headlines today. for that, we send it over to josh lipton. josh? >> hey, kayla, first up, apple, one you were just mentioning here, in the red. showing some relative weakness all morning. meet

peter misic of jeffries tells me that the iphone 5s will likely come out in september, not june. there was a similar comment on another network around 1:45 p.m., which coincided with that downturn in the stock. scott redler also telling me 450 high pressu 450.50 was an important pivot for traders. when that broke, some got stopped out. last line for the bull, he says 435. nokia also lower. analysts at mkm say only 1% of their respondents had a nokia smartphone. morgan stanley, shareholders approving its 2012 comp plan. ceo gorman also saying that the firm hopes to deliver on its roe goal of 10% by 2014. other banks moving higher as well today. goldman, bank of america, and citi. bill, back to you. >> josh, thank you. meantime, shares of sony have hit a new high today, up

10% on the news that the company may have to spin off certain divisions at the behest of an activist shareholder. let's get to the man who broke the story overnight, our own andrew ross sorkin. tell us more. >> i'll tell you, the biggest thing that's happened over the past couple of hours is that sony is trying to create a clampdown in tokyo over the vocal media there, trying to tell them that this is not an effort to break up the company, that this is not an effort to split anything, and that all of the attack that they've had with dan loeb has been amicable and friendly. i'll say, dan loeb has tried to portray these talks as friendly as well. but if you read through the letter and go through the different specifics, it's clear that the effort here is to effecti effectively, long-term, to break up the company, and put different pieces, whether it's the entertainment unit or the insurance company and separate them. but right now sony is doing its best, and doing it quite successfully. if you go online and look at the japanese press, it looks nothing

like the western press, laike te "financial times," "the wall street journal," cnbc and others who have been covering what this market said. it will be interesting to see how the market in tokyo reacts when the market opens up. >> he's only been at the helm of this company for about a area. he said he was refocusing on gaming and mobile. does he not have more time here? and why is loeb striking at this point in the company's trajectory? >> you know, this is a play on japan. this is a play on the yen. but they're now saying the final, you know, the final leg of the three-legged stool is structural changes. are corporations in japan really willing to make some of the decisions that ave has talked about. and this is going to be a catch of that and that's what this is very much about. at the same time, dan loeb got into this stock, started accumulating when the stock was down at $12, $13 a share. so he's already seen a rise in those shares and, obviously, today those shares have risen

even higher. >> they've done very well. andrew, good job. thank you. keep us posted with new developments. andrew ross sorkin. about ten minutes until the close here. dow is up, s&p at 1650 right now, and it's certainly another rally into the close. momentum is really heading there. >> feels like a melt-up. when we come back, joe quinlan says this rally has plenty of room to run and he'll explain why the fed cannot take all that credit anymore. after this.

we don't have inflation, capacity for utilization is low, so you have room there. labor, employment is high. there's room there. there's no inflation on the horizon. so we have a little bit of room to run. >> that was david tepper on "squawk box" this morning, got everybody's attention when he was singing the praises of the stock market, it's undervalued, it's going to go higher from here, and in some ways, some people are crediting today's rally in part from what he said. mike santelli from yahoo! finance said that he's right, that there's more to room to run and joins us along with joe quinlan from u.s. trust. everybody's looking at these valuations saying there could be more room to run here.

>> there's certainly room in the sense that the logic that tepper sets out, that you can't really argue with at this point. but the question i have is, how many people have already kind of acted based on exactly that? i think david tepper kind of showing you the risk all year was overthinking it. and i think now the question is, at what point, at what level of this market does overthinking it become not the risk, but what they need to do. i think we're fine for a while. we have this kind of 90/95 style melt up that i was discussing before. but i wonder if we're a little bit stretched on the sentiment side. >> how does this impact day-to-day sentiment? i know we talk about how there's more room to run, the market will keep going up this year, especially a lot of people bullish on the second half of the year. but on a day like today, relatively little data, relatively low volume, and yet we have the dow that's up 116 points. >> i think this is some of the money coming off the sidelines, there's cash, fixed income, foreign or otherwise. so i think it's kind of self-reinforcing. but you have to be careful with

the downside risk of being underextended. and it will take one little pinprick to set this back, 3%, 4%. >> more and more people are coming here saying less about the defensive stocks and more about the cyclical stocks. you're among them. >> and it hasn't worked thus far. the global cyclics will be the second half story. you have to have evidence that europe's bottoming out, china's stabilizing, more emerging market growth. i think it's a second half story, but we're not there just yet. >> when you look at a lot of these defensive stocks, a lot of people like you say there's more room to run for them because they'll keep throwing off cash and dividends. >> potentially, yes. i think at some point, the rally is going to have another leg up. it has to be with cyclicals coming in. because that means that the macro environment has cooperated. but i think what you're seeing is is a revaluation of certain pieces of paper called dividend stocks compared to other pieces of paper called corporate bonds. and all we've really accounted for here is the fact that equities needed to catch up to

corporate credit. and we've gone a long way toward that. i don't know what the border of that makes sense and that doesn't make sense is at this point. >> whatever, it's still going higher. thank you both for joining us today. >> thanks. >> see you later. up next, we're coming right back with the closing countdown. >> and then after the bell, ralph acupora, he called this historic rally right from the start and he's just as bullish as ever. he's coming up, stay tuned. for teaching us that you can't create the future... by clinging to the past. and with that: you're history. instead of looking behind... delta is looking beyond. 80 thousand of us investing billions... in everything from the best experiences below... to the finest comforts above. we're not simply saluting history... we're making it. vietnam in 1972.

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a little over a minute left here as we head toward the close. and the rally continues here. we have terry dolan with us setting up on set. i think you join us every tuesday, don't you? you pick the right day. 18 straight tuesdays where the market has been higher. >> i know, i know. >> what is that all about? >> you know, it's just one of those anomalies, as we mentioned once before. and you know, a great coincidence to be here on tuesdays. but really, the market's getting so far ahead of itself right now, i can't help but say, even a day like today, so complacent -- >> you're anxious -- >> i'm anxious for the sell side, yeah. i would be selling my positions, rotating out of stocks, moving into undervalued positions, if you can find them at this point. but for me, i'm looking at a 10 to 15% correction at some point in this market, and i wouldn't want to be up here, holding the bag. >> we'll see you next tuesday and see what we can do, if we break that cycle or not. thanks, terry, very much. we're heading towards the close

and the dow, another record high, another tuesday, 18 in a row, aoe back to january the 15th. stay tuned. much more to come on the second hour of the "closing bell" for this tuesday. welcome to the kay"closing bell," i'm kayla tausche in for maria bartiromo. >> and i'm bill griffeth. it is a tuesday, so stocks are rallying. the dow now up for 18 straight tuesdays. this is a streak that goes back to january 15th, where we're now setting record high on a weekly basis. and here's how we're finishing the day out, near the highs of the session, with the dow up 123 points at 15,215. the nasdaq, even with apple computer, down 2.5% today,