ripert, he's been on the show a couple of times, those and la berna den. >> i'm not sure about that. >> so the good thing about it is, the best way to eat it is actually to cut it in half -- >> the best way to eat it is right now. >> and you're not supposed to peel it apart, go straight in, guys. thanks so much. try the cronut. >> oh, my god. tgif. welcome to "closing bell." i'm bill griffeth here at the new york stock exchange. this market badly wants to finish higher. we'll see what happens here, michelle. >> i'maruso-cabrecaruso-cabrera. maria bartiromo will be back tuesday. there is an hour to go in what has been another remarkable week in the stock market. if the dow finishes lower, it would be the first time it's done that for three consecutive days this year. right now the industrials are flat. let's call it flat, bill.

>> if my math is right, i think the dow needs to be up 60 points to finish flat for the week. we're down 59 for the week right now. is that right? >> yeah, i believe that's absolutely correct. >> check my math on that. thank you, teacher. in corporate america, what is old is new again, at least in the corner office. get this, procter & gamble is replacing its ceo with its old ceo. of course, jcpenney did the same thing not long ago. so we're wondering whether veteran blood is better for a company than new blood. we have that story covered from all angles coming up in a little bit. and 401(k)s not as okay as you think. yes, they're up, but the stock market overall is up a lot more in the same time period. now some are suggesting that you pay a financial adviser to manage your 401(k). what?! is that really necessary? we're going to get the facts here from both sides. >> somebody's got to do it, right? let's show you the market's doing right now. mostly a down day.

the dow jones industrial average down about 94, 95 points on the open this morning. this is a similar pattern that we've seen a lot this week. now we're trying to crawl back to neutral, maybe even go higher here. dow is up a fraction. nasdaq still lower. technology has been one of the bright spots today from the upside. a lot of the big technology companies have been trading higher, but not enough to push the nasdaq into positive territory. the s&p 500 index at this hour is trading with a decline of about 2.3% at 1648. so what's the mood on the floor, you ask, as we near what could be the first three-day losing streak of the year? bob pisani, what's everybody talking about here? >> same chart pattern as yesterday. we were down 125 points at the open, the dow industrials, down 95 points or so at the open. and we've gone positive very briefly in the middle of the day. now we're essentially flatlined. and the reason the dow has been

outperformed the rest of the major indices, procter & gamble bringing mr. laughly back. proct procter helping. sears, a big bottom line miss. aeropostale, look at these declines. and abercrombie with a huge revenue miss. the guidance below estimates. gap had decent numbers, but their guidance was a little bit below estimates. ross stores, they're continuing to do well. they're a real leader in the discount space. interest rate sensitive stocks down again today. let me put up the numbers for the week. utilities, reits, and telecom, there's your sector. those are the ones that are down the most overall here. so the important thing is, are we near some kind of inflection point? that's all anybody's talking about today, guys. and the important thing is the s&p 500. so remember in the end of february, down about 3%, bounced back in a matter of a day or

two, at the middle of april, down 3%, bounced back in a day or two. right now we're about 2.5% off of the recent high of a few days ago. we'll see if we can bounce back, but we'll see this story before, and the tendency here is most traders believe it's going to hold pretty well. >> we'll see you, bob. thank you very much. let's talk about today's market. actually, let's talk about this week's market in today's closing bell exchange with jeff saut from raymond james. joe hider, and brianppenheimer . jeff, an awful lot of analysts come through here and their price targets for the s&p, around 1650 to 1700 by the end of the year. for you, it's 1700 by the end of the quarter. is that right? >> yeah, i think the underinvested, underperforming portfolio managers, due to performance risk, bonus risk, and ultimately job risk, are going to carry the market higher

into the end of the quarter. and then after that, i think you are vulnerable to some kind of pullback. but between now and then, i think any pullback will be shallow and short. >> even with the kind of activity that we had this week, where there's so much uncertainty we had exactly when the fed will begin tapering. >> i think that's a bunch of noise, bill. i think with the softening economic statistics we've seen over the past few weeks that ben bernanke is not going to taper on quantitative easing anytime soon. >> david, do you agree with that? this felt at certain points during the week, like this could be the week. are we going to look back on this week and say, that was the turn, that was the moment when we finally got the hints that the fed was going to start to, whatever you want to call it, pull back in some way, take their foot off the pedal, and that things changed this week? >> i agree with jeff. i think it's possible that the fed will eventually pull back a little bit on the easing program, but i would argue, that's actually a positive. if we see higher interest rates and the economy can continue to grow and rates are going higher

because of better economic growth, that's going to be positive for valuation multiples, not negative. >> and do you believe that though, right now? do you think that's what's going to happen? >> yeah, i do think that the economy is self-sustaining. we've got a recovery in the housing market that's very clear. corporate profits, i think, are going to accelerate a bit, as we go throughout the year. and europe is getting some of their houses in order. >> joe hider, your focal point has been fed policy, as it has been for many investors. what's your opinion of when they begin to taper? >> well, i hate to say me, too, on it, but i agree. i think they're giving hints now that they will raise interest rates, not immediately, but allowing the market to digest it in small bits. it's not in a vacuum. that's a good thing. it means that we're in a sustainable recovery. corporate profits will -- should go up with it. and i think that's opportunity for equities to continue to rise. >> so what would you do, then, if you think equities are going

to rise, every boat gets lifted, or do you have to be particular? >> well, i think all boats will be lifted. we particularly like technology. we think the multiples are favorable. we also like the energy sector right now. so we think there's some real opportunities there, but certainly, opportunities in the market across the board. >> the other thing we're watching, brian lovett, is when the small guy finally starts to get into this market in a big way. do you think that's happening yet? >> well, it's starting to happen, but only in a slow way. this has been one of the least-loved rallies that we can remember in history. and you talk to retail investors. for the most part, they've come up with a variety of different reasons why they were not going to jump back into these markets and they've missed an awful lot of it. what you've seen more recently is the beginning of a rotation out of things like money market funds, out of things like commodities, into equities. but investors are still continuing to invest in high-quality fixed income securities, barclays ag-like

instruments at very low interest rates with a lot of interest rate sensitivity. so some of the rotation has begun, but, you know, if you remember the old adages of not fighting the fed and being aware of -- being wary of the herd mentality, we're very far away from the herd mentality being overly bullish on u.s. equities and u.s. economic expansion. >> so jeff, what are you doing right now based on what you told us earlier, that we were all getting a little too r rambunctious about what the fed did or didn't say? >> i think you should be taking money out of the defensive groups, the utilities,s and the consumer staples. i think there's a lot of that have been hiding out in there because they did hate this rally and felt safer in those two sectors. and that has driven those sectors to, on an historic left, pretty lofty valuation levels. i would be using that as a source of fund. i would look to be raising cash into the end of the quarter and looking to put it back to work some time when we do get a

pullback, which i'm anticipating will be starting in july or august. >> david, are you also on the cyclicals bandwagon that everybody seems to be jumping on right now? >> unfortunately, i have to agree with consensus, i guess. but i would say, within cyclicals, i think tech looks especially interesting. i think the problem with tech has been that global corporate profits have been lagging. if you look globally, europe is having trouble, asian profits aren't growing so quickly. that's going to improve, as we go throughout the rest of the year, and that is a good leading indicator for corporate capital spending, as corporations make more money, they're going to display more capital. that's going to flow into global tech companies here in the u.s. >> joe, what would you stay away from? >> well, certainly, i'd be short lightening up on any interest-sensitive kind of investments, if folks are holding long-term fixed income, i'd be bailing on that, raising cash and looking to redeploy it, essentially into the equity

markets. >> you know, brian, we're back to 2% on the ten-year. is that a signal that it's going to go higher from here or is this a buying opportunity, do you think? >> well, with i don't think interest rates go substantially higher from here. this is still going to be a modest growth, modest inflation environment. but what investors have to recognize is when you're only getting 2% in treasuries and inflation's running maybe slightly below that, your real yield is only slightly positive. and you do run this risk of interest rate sensitivity, should we see the economy pick up more than perhaps we suspect. i don't think that bond investor are going to get whacked in the coming months, but they are going to generally grow slowly, or only modestly keep up with inflation. and there's a big opportunity cost with that. there's, th been this big reach yield, whether it's in treasuries or in the higher-yielding components of the equity market. i would think investors want to look more towards dividend

growers and outside the united states. many of the companies in the emerging markets seem to be trading at reasonable valuations as well. >> got it. >> thank you, gentleman. >> take care. we have 49 minutes before the closing bell. the dow jones industrial average trying to get back into positive territory last i saw, and there, barely, nine points, 15,303. >> and my math was confirmed by our statistician. so are investors too obsessed with what the fed does and says rights now? someone here thinks so and says the fed is to blame. we'll talk about that, coming up. also, the battle over sprint heating up between japan's soft bank is and dish network. coming up next, we'll take a look at whether national security and not price should determine the outcome of this fight. and you may lose your appetite when you go shopping for your memorial day barbecue this weekend. find out just how high beef prices are heading and how you

can cash in on sticker shock in the meat aisle. that's still to come on the "closing bell." [ male announcer ] my client gloria has a lot going on in her life. wife, mother, marathoner. but one day it's just gonna be james and her. so as their financial advisor, i'm helping them look at their complete financial picture -- even the money they've invested elsewhere -- to create a plan that can help weather all kinds of markets. because that's how they're getting ready, for all the things they want to do. [ female announcer ] when people talk, great things can happen. so start a conversation with an advisor

who's fully invested in you. wells fargo advisors. together we'll go far. ♪ je t'adore ♪ c'est aujourd'hui ♪ ♪ et toujours ♪ me amour ♪ how about me? [ male announcer ] here's to a life less routine. ♪ and it's un, deux, trois, quatre ♪ ♪ give me some more of that [ male announcer ] the more connected, athletic, seductive lexus rx. ♪ je t'adore, je t'adore, je t'adore ♪ ♪ ♪ s'il vous plait [ male announcer ] this is the pursuit of perfection.

welcome back. we did the math, and yes, the dow needs to gain 60 points today to extend its four-week winning streak and some news surrounding yahoo! which we'll get to in a moment. brian sullivan, cronuts and all has the news. >> some news on yahoo! according to two sources supported by reuters, yahoo! has just submitted a bid to buy hulu. hulu joins now a growing list of bidders. you already have a number of folks, directv, guggenheim

digital media with bids for hulu. according to reuters, you can now add yahoo! to that list. yahoo!e iing off a $1.1 billion for tumblr. big win streak for procter & gamb gamble. valiant pharmaceuticals is on the rise because there's a report it could bid to buy bausch & lomb. what a terrible week for gamestop. some of the concern, there won't be used games for the xbox one and some of these other new consoles that are more digital. the worst performer this week on the s&p 500. that stock down 10.5% right now. back to you, michelle. >> thank you very much, brian. that's going to be interesting to watch. meanwhile, down in washington, members of congress are growing increasingly concerned about the pursuit of a

different company of japan's sprint over softback. new york senator charles schumer seasoneding a letter to the fcc and treasury department, requesting deeper scrutiny of the deal, specifically because of softbank's ties to chinese companies. >> in fact, softbank even agreed to allow the u.s. government to have a say in a director to get approval for this deal. all of this occurring while dish network keeps its counterbid on the table. it's worth $25.5 billion and launching a website, playing to fears that the deal with softbank would compromise national security. let's talk about what derek scissors, senior researcher with the heritage foundation. are the security fears legitimate in your view? >> there are legitimate security fears in telecom. it's an important area for national security. but the way this is being handled is just awful. there's no other way to put it. >> why? >> because we need to evaluate any supply, any purchase of softbank or dish, anyone who

wants to buy telecom, there are american companies that have deals with -- >> so are you saying -- >> i'm sorry. so are you saying, don't put a person on their board. that's a bad idea. just don't allow the idea at all? >> if for choice is to set a precedent where the u.s. government starts putting board members on for national security reasons, that can be applied to a lot of companies. if you believe in a free market, believe in private enterprise, that is not a precedent you want to set. i would rather block one deal than set that kind of precedent. >> if i'm dish network, i'll be out there crying foul, saying, yes, this is a national security issue, because it plays to my strengths, where am i domestically based company. so, what specifically is the concern on national security to have softbank buy sprint. what would happen? >> well, the concern has nothing to do with softbank being japanese. it has to do with subcontractors and who they deal with. there's an american company that sprint is going to be named

clearwire that has some contract with chinese companies. that's going to be true whoever buys sprint. so this national security part of this should apply to everyone. it should apply to an american bidder, a japanese bidder. there's nothing wrong with national security concerns here. what's wrong is favoring -- and i'm not saying anyone is at the moment, but if we were to favor dish over softbank on the basis of national security. that's not the way to go here. >> but back to bill's question. pretend a viewer has no idea what's going on with this deal. your national security concern with softbank isn't because of the japanese aspect. you're saying that they have connections to chinese companies as well. and your concern is those chinese companies would do what? >> the concern in washington is not softbank being japanese. the concern is that there's chinese equivalent being produced. >> and they could spy on us? >> right. >> and that can be blocked by u.s. regulation and u.s. enforcement, regardless of who the company is. that should have nothing to do with softbank, nothing to do with dish.

that should be part of the u.s. law applied to everyone. the issue of putting a director on the board, that is not what we want in terms of keeping the government out of the free surprise system. >> you're a free enterprise guy. does the government have any -- should they have any say in this? this should be based on valuations only then. >> right. >> i'm sitting here with two libertarians and i can't believe we're not having that conversation here. >> the role of government is the national defense. so if there's a national defense concern, absolutely, i think they have the right to step in. i think he's interesting to criticize the remedy here, as opposed to the underlying issue that we're talking about as well. >> there is a national security interest. we should evaluate it. we have an organization to do that. it's called the committee on foreign investment in the united states, but this remdy is terrible. it is intrusive, it is a violation of free enterprise. i'd rather have the deal be decided, somebody say, look, we just can't -- we can't fix the national security risk here. let's just move on, rather than get the idea that, hey, a good solution is u.s.

government-appointed directors. >> now, you understood the implications ofs what we're saying. if we stop too many deals, what happens? the premium extra that a lot of companies have as we trade in the market goes away, right? because there are companies in the world, a lot of them are chinese, that have a lot of money. and if you know that there's a big, rich bidder out there that can't buy you, other people can step in at a lower price. we saw that with unical, way back in 2005. they accepteded a lower bid rather than trying to fight for allowing the chinese to take them over. >> let's be clear about this. i'm not going to say you can yell national security and block people's bids. we have a process to screen for national security. i'm saying either the national security risk is not that high, there shouldn't be any national security component here at all. it should be just based on valuations, or the national security interest is quite high, in which case this precedent of putting directors on the board is the wrong way to go. >> do you have an opinion on

this particular situation? which side of those do you come out on? >> i think that the instructions that have been given to softbank already to make sure that it is not taking chinese equipment in, which it has quoted as saying will cost them about $1 billion, i think those are sufficient. i think that neutralizes the national security risk, and at that point, we should proceed ones the basis of which bid is more competitive. if someone wants to say there's more to it than that, that's fine. but no matter what there is to it, this solution is wrong. >> meanwhile, dish sits there with its $25.5 billion on the table, just waiting. just in case. >> we see this all the time. oh, there's a problem with a chinese bid. here i am with bidding less money, but aren't i better, because i'm local? that's not the solution. the solution is the same rules apply to everyone. >> very good. thank you, sir. have a good weekend. >> you too. >> see you later. 40 minutes left in the trading session. we are unchanged right now, michelle. >> that's right, flat. delta shares are soaring, even though the market's flat.

they're up nearly 60% this year. coming up next, we're going to hear from somebody who says the stock is just getting ready to take off. wouldn't be a friday without a good pun on cable tv, right? just as it opens a massive new terminal at new york's jfk airport, we're getting a live report from there, take a look at delta stock next. >> that's a gorgeous terminal. you're not going to want to get on the airplane. also, our nation's infrastructure literally is crumbling right now. you've seen this collapse bridge in washington state right now, which had been listed as functionally obsolete. we're going to look at the stocks that could benefit from a real initiative to repair our roads and bridges. that's coming up later today on the closing bell. stay tuned. 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. and that gives us scale and insight no one else has.

investment management combined with investment servicing. bringing the power of investments to people's lives. invested in the world. bny mellon. are you still sleeping? just wanted to check and make sure that we were on schedule. the first technology of its kind... mom and dad, i have great news. is now providing answers families need. siemens. answers. 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. ♪

delta airlines making a more than $1 billion bet on its new terminal at new york's jfk airport. phil lebeau is there to explain why delta needs this terminal to be a success. phil? >> reporter: michelle, a lot of people are asking, is it a big deal to have a new terminal here at jfk? well, latake a look at the numb of international flights and the number one airport in the u.s. for international flights? it is jfk, just ahead of miami and los angeles number three. this is the place to be when you want those lucrative international flights. delta investing $1.4 billion into this expansion of terminal four. the amenities include more security lines, a larger lounge, there's even a rooftop desk, which frankly, if the weather

was better, we'd be out there right now. delta's terminal is all about securing and luring more long-haul and business travelers. >> having a new generation terminal with lots of seating, lots of passenger-pleasing amenities, the lounges, all of those bells and whistles, it's important, especially for delta, to secure and keep the all-important business traveler. >> reporter: and it's the success with corporate travelers that is one reason why delta shares have outperformed the airline index overall over the last year, up 70% compared to the index, up 57%. bottom line is this, bill and michelle. there is a race going on in the industry for corporate travelers and delta is upping the ante by putting so much of an investment here at jfk. >> i can't wait to see it. >> i hear it's gorgeous. shares of delta have shared nearly 70% in the last 12 months alone, so is it time to buy that stock as they're expanding into

this jfk terminal, or should you consider taking profits right now? let's start talking numbers on delta. on the technical side, it's enis taner, the global macro editor at riskreversal.com. you think i'd know these by heart by now. and on the fundamental side, it's chris cortez. enis, do you like this stock at these strong levels? >> it's a little overextending the short-term, but i really like delta, both on a technical and fundamental basis. lack at the chart. we can see that on a six-year weekly chart, we'll see that the stock actually broke out. it took off, as you'd like to say, above the $15 level. that was resistance for several years. and the stock broke out in march. and it's really had a very strong run since then. in the short run, we can see that the stock has found support, multiple times, at the 50-day moving average this year. a pullback to $17 would be a great entry for a long-term investment in this name. i really like delta. >> okay. steven? >> enis, i have to say that i

think there's too much altitude right now in delta. and the main reason i say that, it's interesting we're talking delta because of the new international terminal at jfk. that is my problem with the stock, the it's international exposure. it's great that they have a gleaming new terminal. the problem is, when you look at overseas markets, most of them are a disaster. and particularly asia for that matter. and so i think when you look at the international exposure of delta, if you want to be in airlines, i would much prefer to be in southwest. >> i would argue, steve, that the airline business is a little bit different than the industrial demand weakness that we've seen, because it's a secular growth trend, and on top of that valuation in delta is only seven times 2013 earnings on a fundamental basis, it looks very cheap. >> well, yeah, it is cheap, but there's a reason that that pe is so low, and it typically is for airlines, and that's because the airline industry globally, and this isn't just delta, but globally, it operates on one of the thinnest profit margins of any business you can contract. even in the good times, it's a very slim profit margin. because of that, investors are

unwilling to give a big multiple to airlines. if you take out the subsidies, this is a net losing business and has been for decades. so it's had a terrific run lately, but i think if you've been lucky or smart enough to be long, it's time to take some profits. >> i actually think, for once, the industry looks much more reasonable than it has. i'm a long-term bull on airlines. what can i say? >> all right. thank you, guys. have a good weekend. >> thank you prp. >> see you later. by the way, check out our new online edition of "talking numbers," you'll find that on cnbc.com. look for the picture of sully there with "talking numbers." the dow right now is lower by four points, the s&p is in negative territory as well and we are 30 minutes before the closing bell. when we come back, we'll hear from somebody who says this market is dangerously obsessed with the fed and the fed has nobody to blame but itself for that. coming up. and what would memorial day weekend be without the indianapolis 500? it's a tradition as american as apple pie and it's also a huge job creator. the man who runs what's billed

as the greatest spectacle in racing joins us later on the "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. ♪ [ male announcer ] every car we build must make adrenaline pump and pulses quicken. ♪ to help you not just to stay alive... but feel alive. the c-class is no exception.

it's a mercedes-benz, through and through. see your authorized mercedes-benz dealer for exceptional offers through mercedes-benz financial services.

are they whooping still? >> they just did it. one of the great traditions of the new york stock exchange floor, the friday before a three-day weekend, they all whoop, whoop. it was one of the shortest on record, and we missed it by a few seconds. >> they're all leaving early. >> you think? >> as fed officials debate when to taper its stimulus, the market seems to twist and turn on any hints of how soon that famous taper will begin. we saw that in realtime this week. >> yeah, beth ann with me, the standard & poor's deputy chief economist. she thinks market volatility is a small price to pay for how much the fed has helped this economy. but mike o'rourke says it's obsessed with its every move. beth, i'll start with you. it's this small price to pay. the question we keep asking is, what would the economy look like if there was no quantitative easing, right? >> that's true. and what i'm seeing, yes, the

fed is very results oriented. they're focused on jobs creation and what is a sustainable economic recovery. we're seeing people spending despite less money at their paychecks, you're seeing housing turnaround, and businesses still hiring, despite the fiscal, basically, the fiscal shock. >> just not fast enough. >> but it would be a lot worse if it wasn't there. >> mike, what do you think? why are you critical of the fed at this point? >> i think beth ann's right about a lot of points there, that the fed has helped. my issue now is they're creating a lot of speculative activity in the market, where the real benefit today is coming, it's for financial speculation. margin debt at all-time highs, credit spreads very low. companies are choosing to issue debt at low rates to buy back stocks to drive earnings growth. and yes, the economy's recovering, but it's -- you know, the real gains that are coming are coming in the s&p 500 coming to new all-time highs. >> are you suggesting that maybe the market is telling the fed

that it's time to start taking its foot off the gas. they can handle it themselves now. is that what you're saying. >> i think what the market is telling the fed, as you push this extra food into the system and it's not going into the real economy, because we basically have a lower rate of growth in the economy, that people are putting into financial assets. companies aren't investing and opening factories and hiring people. instead, they're buying back stock. and it's just a very dangerous scenario, because after 2000 and 2007, we said we weren't going to do these types of things again, to drive the economy, but with the stock market, but that's exactly what we're doing. we're driving it with asset praises. >> beth ann, i suppose the counter to that, you don't know what the counter factual is, right? if the fed hasn't done these things, what if? >> it's pretty much an open game for them. nobody knows what would have been. but i think there's other things to consider. yes, the economy is improving, and certainly, there is speculation going on in the markets. however, the fed has also got the dual mandate, which is

inflation. inflation, now, indeed, the personal expenditure deflator is only around 1%, year over year. they like it to be over 1.5. so that's still rather name and another reason to keep on the -- >> what about mike's point, that some of the money that's gone into the economy, courtesy of the fed, is not being used to build factories and things, it's not for capital expenditures, and they're buying back stock. they've got hoards of cash sitting on their corporate balance sheet and they're giving it back to shareholders. >> there i would say the big problem there is there's a lot of uncertainty. the fiscal fog that we're looking at is just sort of keeping businesses, basically, on hold. >> what's going to relieve that fog? >> we need to see some kind of compromise in congress. we thought it was going to happen a little sooner, and it looks like it could get pushed out into the fourth quarter. that means the longer they way, the slower growth is, and that's another reason why the fed keeps waiting. >> but it's not the fed's responsibility to make up for congress. and this is the problem here. in 2003 to 2006, we hiked rates

at a very slow pace that you put on all these trades in the financial markets that took place, that obviously led to the implosion of the financial markets and a lot of cases, the global economy. we're looking at an economy with 2% gdp growth, no earnings, or relatively little earnings growth the past couple of years. most global economies in recession, but our stock market is at new all-time highs, because people believe the fed puts out there and the fed will -- i mean, bill dudley came out the other day and said, we're afraid. we don't know if we take this qe away, or if we start tapering, markets might react negatively. but if you never start tapering, you have a problem. >> do you agree that it's fiscal policy that's putting a drag on this economy, creating that environment of uncertainty that keeps companies from spending the cash? >> put this way, the pce target that the fed has now, they only instituted a few months ago. obviously, it was unofficial turned greenspan fed, and it's funny, yes, there's this dual

mandate the fed has. but if the pcu was running higher, you wouldn't see the fed out there draining liquidity from the markets aggressively. they're totally worried about asset prices and how that are affect markets. and if you pump asset prices up so high you can't unwind it, you've lost control of monetary policy. >> i would counter on one point. if you're lacking at, certainly, businesses are sitting on a lot of cash. but if you look at the first quarter gdp numbers, 2.5%, well, markets were expecting much lower than that. it came in relatively, a little bit better than what we were expecting. if you take out the federal spending, or federal contraction, it would have been over 3%. businesses were investing, and that was after a strong fourth quarter reading and also consumers were spending. i do see the private sector really holding up. >> beth ann, it was the investment portion that was down. all we did was get that back in q1. since the start of 2012, average gdp has been less than 2%.

>> obviously, there's still a lot of debate to this. we debated it all week, didn't we, bill, with all of the ups and downs and bernanke and the minutes and everything else. ladies and gentlemen, thank you so much. >> let's meet up over the weekend and continue to debate. gr down at the beach. 20 minutes before the "closing bell." the dow jones industrial average is lower by 21 points, the nasdaq is lower by 11, the s&p is down. >> had to get the glasses out for that one. everything old is new again at procter & gamble. the fundamental purpose of any business is to create a customer, keep that customer, serve that customer, and turn that customer into a loyal customer. >> well, the mega consumer staple company is tapping its former ceo, ag lafley to run the company again. what does that say that they had to go back to the well for leadership. that's coming up later on the "closing bell." the jersey shore, devastated by superstorm sandy.

up next, we're going to take you there life to see how the state has recovered as the all-important summer tourism season kicks off. unfortunately, though, very bad weather this weekend. s to generate income? with fidelity's new options platform, we've completely integrated every step of the process, making it easier to try filters and strategies... to get a list of equity options... evaluate them with our p&l calculator... and execute faster with our more intuitive trade ticket. i'm greg stevens and i helped create fidelity's options platform. it's one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open an account. [ female announcer ] there's one thing

dave's always wanted to do when he retires -- keep working, but for himself. so as his financial advisor, i took a look at everything he has. the 401(k). insurance policies. even money he's invested elsewhere. we're building a retirement plan to help him launch a second career. dave's flight school. go dave. when people talk, great things can happen. so start a conversation with an advisor who's fully invested in you. wells fargo advisors. together we'll go far. the market can't get any

buying going here, michelle. if we were to close right here, we would be down about 70 points for the week. that would break a four-week win streak for the major averages, at least for the dow. >> and it looks like it was going to try, at least, to get into positive territory. it's kind of hard to see the intraday chart up here on the screen. but there were moments when it was green, just barely, really moved off the bottom. there's still time, but it's getting pretty tough, bill. >> 15 minutes to go. the mood on the street, much like the weather outside. you'll see here in a moment, it's cloudy and rainy here in the northeast, times square among it. that's not good news for new jersey, as the state kicks off the summer shore season, and that one may be more important than any in the past. kayla tausche is down the shore, as we say, looking at just how important this is to the garden state in the wake of superstorm sandy last fall. kayla? >> reporter: hey, bill. the weather is not just a topic of conversation here, it's a very important factor in setting the stage and the mood for the summer. vacation season here at the shore. in the seven months since superstorm sandy, the

business-oriented parts o. shore are nearly fully rebuilt. seaside heights, about 2 miles south of here, is back in business, back as good as new. if you take a look at the boardwalk, it's fully restored as of two weeks ago. the storefronts are brand-new as well, and of course, there was a big unveiling today. but that's important to start there, because tourism is a big business br new jersey. the third largest industry for the garden state. $38 billion in annual sales and some $4 billion plus in annual tax revenue. those numbers are expected to fall slightly through the summer, because there is expected to be still a small dent from superstorm sandy and the ability to actually bring vacationers out to the shore. but they're trying, nonetheless. the state spending some $25 mm in a marketing campaign to tell vacationers in the tristate area and beyond that the jersey shore is open for business. but it's hard to imagine that when you look at places like or thely beach, which is where i am right now. some 300 houses are still

waiting to be torn down, getting an order to do that from fema just over the weekend. these are houses that would otherwise be rented out to potential vacationers, so it's hard to imagine the landscape being the same along the jersey shore with a lot of these rental houses and places for people to stay just not existent this summer. governor christie earlier this week said he expects the entire jersey shore to be back to normal next year, but that's not detouring at of vacationers, responding to a aaa survey, 79% of respondents would still consider coming to the shore, regardless of the storm. so that is good news, but hopefully they'll get some sunshine if they do come out. bill and m.cc, back to you. >> sounds like they'll have to wait until monday to get that sunshine, though. >> an injustice. >> she's still standing out in the wind and the rain. poor kayla. 14 minutes before the closing bell. the nasdaq lower by a little more than ten. jeff kleintop says investors should apply a little sunscreen to their portfolios to avoid

getting burned this summer. he'll explain his strategy and his metaphor, when we come back. and the sticker shock of your memorial day barbecue may give you indigestion this year. there is a way, however, to cash in on sky-high beef prices. that's later on the "closing bell." ♪ [ laughter ] ♪ [ female announcer ] each one of us is our own boss. ♪ and no matter where you are in life, ask your financial professional how lincoln financial can help you take charge of your future. ♪

can help you take charge of your future. all stations come over to mithis is for real this time. step seven point two one two. verify and lock. command is locked. five seconds. three, two, one. standing by for capture. the most innovative software on the planet... dragon is captured. is connecting today's leading companies to places beyond it. siemens. answers. cnbc 0

just ten minutes away from closing out what turned out to be a very wild week on wall street. jeff kleintop is recommending a little sunscreen for your portfolio, michelle. >> a little sunscreen? we'll find out what that means. he's going to join us now along with david darst from morgan stanley wealth management as well. all right, jeff, you brought a cool metaphor on a friday before the memorial day holiday. what do you mean by sunscreen for your portfolio? >> well, you know, as the markets may be go from a gallup higher to a grind higher this summer, maybe we have a good bit of volatility. we have a lot of big events at the end of the summer. what the fed is going to do, the whole debt ceiling issue coming to head, the germany elections. you might get some volatility this summer. >> so investors could get burned? >> i was waiting for him to say that. >> sorry, that's what i was getting to. way too long to get there.

that's the idea. instead of getting burned, think about a little cash, a little sunscreen, but as a summer rental for your portfolio until you find something you really want to buy. >> not to be outdone, david darst was giving me an alphabet lesson during the commercial break. >> we think the bond yields will stop going down, and staying at these very low levels. they've been going down for 32 years now, with some bumps along the way, when three things happen. when economic growth comes into play. it's not there on the horizon so far. secondly, when inflation expectations start to pick up. they've been going down, these break-even spreads have been going down. that's worrisome to us. and thirdly, when the three big buyers of treasury securities, all beginning with the letter "f," the fed, the foreigners, and the folk. that means the general population, the household sector. when they begin to step back, then you're going to see yields rise powerfully. >> and when does that happen? >> well, i think, first step is the economic growth.

this thing has been driven. this market has been driven by monetary stimulus, by the absence of worry about a tail event, bill. some sort of bolt from the blue. and about the better news flow of jobs and so forth and so on, okay, and house prices. those three things. but you've got to see economists, morgan stanley, citi, j.p. and others raising the economic forecast and raising the earnings forecast. right now, it's all going to be not earnings, but it's going to be pe expansion, which has happened a lot, so you basically want to stick with some -- buy some health care, buy some medtronic, buy some johnson & johnson, buy some abbett, and get some energy into the portfolio. >> jeff, do you have any ideas on this friday? you gave us conceptually what you thought at this point, but you have specifics. >> well, i do. i think you want to stay close to home. i think a rising dollar and the

weakness overseas means for another summer rental might be u.s. stocks. you know, thinking about areas like technology, which has not kept up with the overall market so far this year, but looks like on a return of business spending, might be a great place to at least wait that out here, over the summer months, as we start to see some momentum return there. so technology makes some sense. health care, also, as we look to the fall, and the implementation of these new health care exchanges, we're likely to see, i think, maybe some better news coming along in health care. >> and david slipped in a pretty pivotal idea, which is, after this huge 32-year rally if bonds, he's suggesting it comes to an end. how do you feel about that? anything with interest rate exposure? >> i think we've seen a short-term run-up here in interest rates. i think it's not to the fall, maybe around the jackson hole conference at the end of august, that we get the next leg up. i think you can get a summer rental of some high-quality bonds for now to help bumper some volatility. but you want to get out of those, close out that rental toward the end of the summer. >> very quickly, david, do we give up on the dividend payers?

>> no. >> that was such a play in the first quarter, and all i hear about are cyclicals now, in getting rid of the defensives and going to the cyclicals. >> bill, they say people who get colds and the flu basically have a much less chance of getting cancer, because the immune system is being exercised. one of the best things around is this setback for gold. >> thank you, mr. darst. nice to see you. jeff, enjoy your summer rental. >> thank you. >> you got it. see you guys later. we are coming back with the closing countdown for this friday. we'll wrap things up with a minus sign in front of the dow right now. after the bell, rbc capital market's amy wu says you can buy protection for your portfolio. and dirt-cheap prices right now. she's going to lay out that strategy, coming up. you are watching cnbc, because

we are first in business worldwide. [ agent smith ] i've found software that intrigues me. it appears it's an agent of good. ♪ [ agent smith ] ge software connects patients to nurses to the right machines while dramatically reducing waiting time. [ telephone ringing ] now a waiting room is just a room. [ static warbles ] [ engine revs ] ♪ [ male announcer ] just when you thought you had experienced performance, a new ride comes along and changes everything. ♪ the 2013 lexus gs, with a dynamically tuned suspension and adjustable drive modes. because the ultimate expression of power is control. this is the pursuit of perfection.

[ babies crying ] surprise -- your house was built on an ancient burial ground. [ ghosts moaning ] surprise -- your car needs a new transmission. [ coyote howls ] how about no more surprises? now you can get all the online trading tools you need without any surprise fees. ♪ it's not rocket science. it's just common sense. from td ameritrade. okay. we've got 2 1/2 minutes left here, michelle. let's review what a volatile week this was. here's the dow for the week. hear was that fed day with all the confusing testimony, the minutes came out. we sold off, we were up higher,

we were sharply lower, and we've been going sideways in all that time. and for the week, when the dow was all said and done, we're basically flat. down 2.4% for the week. how about the ten-year? what'd the yield do? it skyrocketed for a while. we're back about 2%. a gain of 3% on that ten-year yield. jump in anytime, michelle. gold also skyrocketing for a time. we had this sell-off, midday, on wednesday, but for the week, we're up 1.3%. and finally, michelle, the vix, the volatility index up sharply for the week, a gain of 15%. that was the big mover right there. >> my one thought on all those charts, if you bring back the dow for one week, i've got to talk about the i.t. department, because i think they allowed the numbers to be too wide in the setting and you don't get a sense of the volatility. but it was crazy! >> exactly. alan valdez has been buying

dicti dips. are you buying this dip this week? >> we're buying this dip. we don't think this fed talk is going to materialize to anything. we think it's going to stay just talk. we may go plush by the end of the day. >> the dow does look like it wants to come back, but we will be down for the week. first down week. it's not the end of the world, but first down week in a month here. when do you stop buying the dips? when do you stop? >> the fed is really going to take the pedal off the metal. i don't think that's going to happen. look at news out of china, weak. new york is still weak. i think it goes a long way before it can pull back. >> that's an important point. we've had people on who says, even if the fed does pull back, that will be a good thing, because that will mean the economy is getting better. ultimately, your bottom line is, you don't fight the fed. the fed is not anything to fight at this point. >> he doesn't hear what you're saying. he's looking at me like what's going on -- >> it's the best of both world when the economy is doing better

and the market is going higher and the fed's talking about pulling back. but we'll talk about that another time. have a good weekend. >> have a good long weekend. and heading out, we are finishing positive. i think first time today, up about 12 points on the dow jones industrial average. starting now, the second hour of the "closing bell." it was another wild day on wall street, as we wrap up a very volatile week. welcome to the "closing bell." i'm michelle caruso-cabrera in for maria bartiromo, who will be back next week. bill griffeth joins us this a moment. major averages posting their first three-day losing streak of the year, if you're talking about the s&p. the dow jones industrial average higher by nine points, 15,303. it was a squeaker when it comes to being in positive territory. didn't look like it for a long time. nasdaq tried really hard at the end, lower by only a quarter of a point. the s&p 500 lower by 0.8 points