stock, and that's thor industries, winnebago has had a heck of a run over the past couple of years. >> we've got five seconds, do you need a special license to drive one of those bad boys? >> depends on which one. the big ones, yes. the smaller ones, no. >> thank you so much, phil. have a great day. "closing bell" is next. have a good weekend. hi, everybody. we enter the final stretch for the month. welcome to the "closing bell," i'm maria bartiromo at the new york stock exchange. this market staging a late-day sell-off in the final hour. bill's just telling me, we just heard more than a billion dollars for sale as we approach this final hour. >> no matter how we finish this day, the sell in may and go away just didn't happen this year. the dow finished the month positive. we're still waiting to see just how positive, because we are tanking as we speak. the dow was up 67 points at the high of the day. we've had a 1% swing in the

meantime, more than 150 points here to the downside. >> and we're down in the double digits right now. up ahead, we're also going to be speaking exclusively with house majority leader, eric cantor. he has vowed to get to the bottom of the irs scandal. as new developments unfold, we'll get an update from representative cantor anymore. do you remember when bruce willis landed on that asteroid to save the earth? well, there's a company called planto plantory resources and it plans to mine asteroids. and before you laugh, they have some very big investors, including googles eric schmidt. we'll be talking about the ceo, coming up. and as we approach this final stretch for the week, for the month, the dow jones industrial average down 90 points. you can see this in the chart in the final hour at 15,229 on the dow industrials. the nasdaq look los like this.

a decline of 17 points. we had that big rebalance coming up at the end of the day here. that's going to create a lot of volume. down 12 points on s&p 500, that's 0.75%. so much for sell in may and go away. this market posting the first positive month of may since 2009. i'll send it to courtney reagan right now to check on the sentiment on the floor as we check out what will be a sixth consecutive positive month for the markets. >> that's right. it actually has been a very strong month for may. and as we look right now, we are seeing the dow and the s&p now negative for the week. but we're still going to close out the month higher, like you said. the dow now sitting three points off the lows of the session, which we hit just a couple of seconds ago. we were as high as 67 points at one point. that means for the eighth trading session in a row, we had a triple-digit range for the dow. but if you look at the sectors, for a while, we were split today, half positive, half negative. we have now moved all negative. s&p utilities performing the best, but, again, now in

negative territory. consumer staples, some of the worst performers of the day. these are sensitive to rising rates, and we know that ten-year treasury, creeping up. so consumer staples taking a bit of a hit for the day. that's also impacting a number of big names ton dow. when we look at the cyclicals, this is where we've seen the strength for most of the month. and this is good news, to see these riskier stocks trade higher as opposed to some of the easier money, if you will, here. so we've had a pretty strong rally for the month of may as well. and as you mentioned, plmaria, when you look into the close we could be in the market for some volume. we've got some rebalancing going on here with the msci, and we're unprotected for the last 30 minutes of the day, because the s.e.c. is implementing these new limit, up-limit, down-limit rules, so we've gone away from what the nyse used to have in place. they have issued a statement later in the day asking the s.e.c. to transition into

basically reinstating the liquidity replenishment points that the nje used to have, but as of right now, those last 30 minutes could be a volatile one and very heavy with the volume. >> courtney, thank you. when there is a rebalancing, there is a buying and selling of stock in a particular index and that's why we get the volume and the volatility. let's talk about today's market action with these gentleman. it's ken mahoney, david sieberg from keown and company, brian evans from bond street wealth management, and andrew wilkinson, from miller tabak. good to see you all. thanks for joining us today. so ken mahoney, we didn't get sell in may and go away, but could we get a june swoon if this picks up here? >> i think the path of least resistance is that stocks go higher. at the end of the day, you have a lot of must be managers are experiencing performance anxiety. and i'm not referring to what you see on the tv commercials, but you have averages up 13,

14%. many of those money managers are still behind that. and to keep up with the joneses, they have to buy stocks. i think performance anxiety will help out stocks in the long run, because these money managers have to add to their stock portfolios. >> david sieberg, you agree with that? what's your take with regard to this market and what we've been seeing over the last two weeks, nervousness. does anything change? >> i think we'll continue to move higher. that's been my thesis all lang, still very bullish in the market. i think we know what the fed is going to do or we're going to have an idea. it's going to be moderate, the way they pull qe back. and i think the economic data, which we've seen so far, has been improving. one thing that's very important to look at, and i know people are concerned about rates and they're talking about the fact that the ten-year has been going higher and we've seen that over the last three weeks. if you look at the s&p 500, i think there's roughly 400 stocks in the s&p 500 that actually pay a dividend. they pay a dividend that actually roughly equals where the ten-year is right now. my question to you is, what

would you rather? even investment in the ten-year, where you have kind of a relatively still lousy yield coupled with duration risk or would you rather have the opportunity to be in an equity that's got a yield roughly around where the ten-year and the opportunity for growth? i'm going for growth. >> i'm going to ask brian evans to answer that as well. that debate has been ranging for a couple of week. goldman says sell those bonds, ubs says buy those bonds. what do you say, brian? >> i think it depends on which bonds you're talking about. >> the long-term treasuries. >> oh, long-term treasuries. i'm not a big fan of treasuries. i don't see any risk/reward with the treasuries. they're at an all-time high, but there are other areas of the bond market that you can get into, that are secured, select high yields. but the treasuries, which are very heavy in most bond market indexes are not in a good place. you have to be careful to expose

you're to bonds. >> let me ask you about stocks, andrew wilkinson. we continue to see gdp that shows an anemic story. is that enough for this market to be justified, do you think, that we're getting ahead of ourselves in terms of the strength, relative to what's going on in the economic backdrop? >> i think the path for stocks will remain exponentially going forward. if you look at the patent we've had so far this year, january, march, and may have been excellent months for stocks. they've outperformed bonds and had you invested alternatively in bonds in february and april, you'd have done very well out of bond. the patent is to go out and buy bonds, particularly with yields and in the month on such a bad note. >> so you'd be buying bonds? are we talking about long-term treasuries as well? >> yeah, i don't dislike the bond market at this point. i think we've had a significant spike up in yield. well, a drift higher, not so much a spike. i think the fed has us exactly where they want us.

i don't think there's any mistake that bernanke made to congress the other week. i think he wants this debate about tapering out in the open. i don't think the fed is very close to tapering its bond purchases. i think you need to see three consecutive 200,000-per-month payroll gains. the earliest that could happen is september. and if we trip up next week, which i would expect, even if you're looking at the chicago's purchasing index this morning, the employment component didn't quite rise as much as it did at the time of the january report. that report only produced 148,000 payroll gains. people next week are looking for 165,000. i think there might be some disappointment there. >> david sieberg, i know you're watching carefully, waiting for that payroll report next week as well. what are your expectations? >> look, my expectations, i mean i guess i hope it's a very good number. like everybody does, i hope the number's a good number. if it's a weak number, i think

you'll see a sell-off and it will be met by buying. you have a lot of money on the sideline, they'll be coming into the market. so it pulls back our buying opportunity and you need to take advantage of it. it's that simple. look, we just had a technology conference that just ended in new york yesterday. and i'm going to tell you something, the tone coming out of that conference was off the charts. so very positive tone, leads right into the whole thesis. the cyclical rally is on, it's going to continue. people are still bowled up here. >> tech is cheap, right? was the optimism around technology, because technology certainly has been an underperformer. >> look, it has been an underperformer. that's why it was so interesting. i think going into the conference, the concern was the optimism wouldn't be that upbeat. but the semi-cap equipment names, in particular, and we've been talking about our expectations at capex, we're way high on the street. and our sort of conviction is that, you know, through this year and next year, it's going to be meaningfully higher than what street expectations are.

that's bullish. and i think that thesis was played out. >> we'll give you the last word. >> i think it's really interesting, for the bond market here, there's been chatter about fed chairman bernanke retiring. we might have a seinfeld episode here. we know fed chair bernanke will be leaving on top with the way the economy's improved so much since the great recession. maybe we'll have a costanza moment with fed chairman bernanke. >> thank you, gentleman. have a good weekend. >> thank you. >> george costanza. >> and ben bernanke, there's a pair. >> we're in the final stretch for the week, for the months. 5 minutes before the closing bell sounds. a market that is lower by 80 points, having given up all of the gains of earlier and then some. >> i've been looking forward to this all day. after the break, a wall street smackdown. goldman sachs says the sell-off is for real, ubs says keep buying those bonds. who's right?

we'll get to the bottom of it and do you own shares of netflix? starting monday, there's a good chance you will, will you like it or not. we'll tell you why. and later, an asteroid is heading towards earth, a lot closer than many would like. >> we've got to get out of here. >> this is the last hour of the trading day. before it gets here, we'll talk to the cofounder of a company that's working to mine the resources from asteroids as they tear through space. you say it sounds silly, not so fast. wait until you hear whose his financial backers are. that's coming up as we continue for the "closing bell" on this friday. stay tuned. announcer: where can an investor

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welcome back. in our return on retirement segment today, an asset class those entering their golden years depend on is taking a bit of a hit. goldman sachs making a bold call that the sell-off in bonds is for real and will continue. >> however, ubs' head of rate strong, michael schumacher, disagrees. he's putting out a note this morning telling clients to buy treasuries. also with us, doug sandler from riverfront measure treasury gro our man, rick santelli. why is goldman wrong about the bond sell-off? why are you buying when they're selling? >> number one, we think the market's overreacted to the fed. we thought mr. bernanke's comments were very plansed last week. number two, seasonal factors are very powerful for bonds, running through september, that's a big plus. we think the ten-year treasury yield is 50 odd basis points too high. and lastly, we think positioning is skewed to the short side. >> doug, you were likening bond

investments no carbon monoxide for investors. what do you mean? >> well, essentially, yeah, if you own bonds here, you're going to lose real purchasing power over time. it's just a fact. it will take time. it will be a recognize before you recognize it, and by the time you recognize it, it's too late. the question, i think, investors have got to ask themselves is can you live off of 30 or 40% less standard of living ten years from now. and if you can, you dona't have to worry. but if you're like most investors and you want your portfolio to actually grow and not get cut by 30 to 40%, the reality is you cannot sit in bonds at 2%. there's never been a time where an investor made money in a bond over a normal amount of time. >> so we've got a buyer and a seller, rick santelli, what do you think is going to happen? >> i would be more inclined to think that the sell-off that we've seen is probably the bulk

of the sell-off we'll see, so i think i'm more in ubs' camp. however, i can't with hugely confident in that call, because i'm not hugely confident in where interest rates would be if they were in a normalized setting. so to get normal is not only the form normalization, but it's the added on when you compress something, usually when it pops up, it's more over-aggressive. it's taken years for these investors, based on the fed programs, to pile in. and the flaw in the fed strategy is going to ultimately work towards goldman, but i think next year, and that is, what if they said, bill, are they going to remove or taper if things were getting better or worse? better, right? well, if things are getting better in the economy, that's normally bearish for bonds. so the flaw in their strategy is that once they want to taper because things are getting better, i think they lose control of the market. >> michael, i thought you were going to answer that question. go ahead. >> the key point here, i think, to focus on is, what is a normal investment horizon?

yes, over two to three years, yes, treasuries are a sell. but from our standpoint, you have to look at these things more of a three to four to six-month play at the outside. too many variables are up in the air. we don't know who the fed chair will be in eight or nine months. for us, we think there's good money to be made in the short-term. if you think about it, if long-term treasury yields were to fall 50 basis points, you could make 4 to 5% in a ten-year treasury. nothing to sneeze out. >> so is that the opportunity that the ten-year, then, michael? >> we think the ten-year could get down to 170ish. that's our target, actually. we think that's a fairly reasonable number. >> go ahead, doug. >> in deference in michael and to rick, from our perspective, the retail investor, that's dimes in front of a bulldozer. in the end, rates are going to go higher. they always have. you've always lost money if you buy bonds at a 2% interest rate, because inflation runs 2 to 3%

per year. and if you need to retain your purchasing power, i don't care if bonds go to 170 in the next since months, it doesn't matter to me. >> so i guess what we're differing on here is time horizon. you're looking out longer term than these guys are, aren't you? >> we certainly are. our average horizons are at least three years on the short end, but generally 5 to 7 to 10 years. when you've never made money at these rates ever, maybe the future is different than the past, but i have a hard time believing that. >> so what's the alternative on the equities side, doug? >> well, across the board, we like equities. i would say the stuff that looks more like bonds we like less. so utilities, telecom, consumer staples. they've been bid up because the bond investor who has left bonds and went and bought the safe stocks has gone up. the cyclical stocks look the best. so if you go into the companies that are most economically sensitive, they're the cheapest and they're the ones that have

been leading this recent rally here. >> michael, are you talking about -- doug keeps talking about, you never make money buying bonds at 2%. are you talking about making money when you talk about those buyer recommendation, or are you talking about not losing money? >> we're talking about actually making money. for instance, if you were to buy the ten-year treasury at 215 or 220, which is about where it trades now. and if we're right and that yield drops down to 170ish in a few months, you'll make 5%, give or take. let's say 4 to be conservative. >> but if it goes to 3 -- >> if it goes to 3, then you lose a lot of money. we're dead wrong. >> there's one fly in this ointment. we haven't had that many of times when we've been under 2%. i think that tiers you in a bit in the wrong direction. >> rick -- >> the last three years, i don't see people buying treasuries because they thought they were going to get rich. they thought they were going to get poor in stocks and that was

their hedge. >> -- reality to 2%. it's not going to go to minus 2. there's only so much you can make -- >> exactly, exactly. >> -- and in our opinion you're talking about dimes in front of a bulldozer. we were at 3%, or between 3 and 3.5 in 2011 when the ecb said they wouldn't back up spain. that's what caused bonds to go to 2%. that's a panic premium if bonds that we think has every ability to go away. we could go back from 2 to 3 -- >> have you looked at europe lately? >> but when you think about rick's point, he's right. we really have had very few data points in times when you've got yields at super low levels. central banks are injecting liquidity like there's no tomorrow. and it's not just the fed. think about the bank of japan. unprecedented easing. other central banks are doing similar things. the bond market, the investment world is awash in liquidity right now. we've never seen this before. >> we've got to go at this point, but this is definite proof we're not in kansas

anymore, because we spent five minutes on a compelling debate on treasury bonds, of all things. >> thank you for joining us. heading towards the close. 40 minutes left in the trading session. a pretty volatile day, it turned out. we were up 67 on the dow. then a lot of stock coming for sale here at the exchange near the close, because they're rebalancing a major index. so we were down 90 points at one time, but now we're off those lows, down 65 points. >> and netflix shares up an astounding 145% so far this year, 2013. and whether you like it or not, come monday, you may own that stock. up next, we'll tell you why and hear from somebody who says the stock rally is just getting started. and later, i get to do this again, mining asteroids may seem like the plot of a movie you could get from netflix, like "armageddon", but this isn't science fiction we're talking about. it's real and potentially very profitable. coming up, an out of this world business that has the backing of google's eric schmidt and larry

page as well as former sachs co-chair, gary white, coming up. [ 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,

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serious investors are choosing fidelity. now get 200 free trades when you open an account. welcome back. the technology sector outperforming broader market once again today, on fire. seema mody at the nasdaq with the details. seema? >> hey, maria, whatever happened to sell in may and go away? the nasdaq now close to locking in its best monthly gain in

2013. semiconductor stocks fueling the nasdaq. these companies that specialize in chips that power mobile devices. speaking of mobile, credit suisse's india team putting out a note last night that seems to be getting the attention of traders state i'd. the analysts writing that iphone sales are nearing 400,000 units per month in india. that is for a single top-end product in a market that has for so long been dominated by lower end feature phones. lastly, netflix in focus. it will be joining the nasdaq 100 next week. writing that being added to this index will likely help increase its value further, because there are fechlt funds that require some percentage of their capital be invested in this index. >> let's talk about that. is now a good time to buy netflix? let's talk numbers ton company today, on the technical side, jc

o'hara, and on the fundamental sigh, it's toony amoby. jc, if you look at two years of netflix, that's tremendous volatility. what do you think of the chart right now? >> well, bill, i'll say this. netflix is being added to the nasdaq 100, and if you're a short-term trader, i think you should add this stock to your portfolio. and i'll tell you one reason why. momentum. this stock has exhibited amazing momentum to the upside. just looking at a longer term chart, you see a nice, rounding base that was traced out over the last two or three years. and typically when stocks leave formations like this, they do so in a hurry. that was exactly the case with netflix. this year it's up 150%. and the second thing i want to talk about with momentum are the gaps up in price. we had two gaps up, which shows you the psychology of the crowd is in favor of the stock. the last gap up in price happened around 195, 200. and any weakness, we could pull back to there, but i like the

short-term, up from here. >> this company has had a couple of eventful years, not all of it good. do you lake the company here? >> right now we are neutral. we were recommending the stock for quite a while. but primarily, we have some concerns now on valuation, as was alluded to earlier. as you look at it, i think it's got to be even more compelling to get this stock higher from where it is. but, obviously, the fundamentals are much better than they were about a year ago. you know, they've put together two consecutive solid quarters. i think the question is going to be going forward, you know, what effect content spending has, especially now that they have more original programming. that has been off to a very solid start, but we prefer more visibility on the rest of the original programming slate on the rest of the year before we can get more constructive. >> is there a price you would want to see it pull back to where you feel it's a better bargain? >> right now, it's trading right around our 12-month target. if you remember, it got as high as 300.

these investors are still hoping that it gets there. but we're hoping, as we said, it's going to be a very cop p compelling set of -- the second quarter is expected to be very temperate. but over the next year, investors need to digest these rains before a further rally is kind of recommended. >> jc, how high could this go? >> we need to get it past 250, first. and we talked about 300 a second ago. we can't forget that this stock ran all the way up to 300 in july of 2011 and lake a house of cards, which is a great show on netflix, it came crumbling down. so that's why i'm really paying attention to my downside at 195/200. any weakness should be held there. and momentum can turn on a dime. if we break 195 to the downside, i'm out. but right now i'm long and like it above 250 from here, bill. >> you're just hoping there's no arrested development in their growth. thank you both. nice to see you. have a good weekend. by the way, you can check out

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by the way, just pointing out, we are at the lows of the session right now. the dow down 108 points. we just got word there's still about $1 billion worth of stocks for sale here at the new york stock exchange. so the sell-off continues as we finish out this month of may. however, the auto industry has been in recovery mode this year

and making some nice gains so far in 2013. looking ahead at auto sales early next week, general motors up about 20% year-to-date. ford up about 20%. toyota up 30%. and everybody is talking tesla these days. that stock is up more than 200% so far this year. i know you drove one today. >> yeah, i did. what a move in that stock. i want to talk to you about my observation on the test drive from the tesla. let's talk about switching lanes. tom lasorda is the former ceo chrysler and is launching a venture fund with roger penske. the roger penske inc. specializes in tech start-ups with clean energy, transportation, and health care among other industries. tom, good to have you on the program. welcome to the "closing bell." >> thanks a lot, maria. >> so congratulations. tell us about your new fund. what are you investing in?

>> great. well, inkwell is the name of the company and what we did is sat around with some of my friends and i talked about seeing the tv program "the shark tank," and i said, we ought to do that right here in birmingham, michigan. it's a great spot. and i talked to roger, and he said, if you're in, i'm in. and ted fuller, a great guy in birmingham, a lot of real estate, he was in, and the next thing you know, i had about 13 of my friends all investing and we're going to invest in start-ups as an angel investor in these great, great technology company. >> so where do you think the growth is right now? there's so much start-up activity across the country, who's the lucky recipient of your first check that you're writing? where are you investing first? >> well, right now we're looking at a company that's out of boston. they're in the, i'll say, the internet and software technology space. it's not a space that we're used to, but of course in the cars,

there's 32 different computers in them. so we're looking there, we're looking in the medical device category. we think that will be very, very strong with what's going on in the health care world. health care sciences, we're looking at some proposals there as well. we're really looking forward to getting into the, what i'll call the industrial space, where we really look at hardware in the technology area. >> what a great space to look at. because i know the marriage of really health care and technology has just been extraordinary and we're seeing so many great developments there. i'm sure there will be a rich space of ideas. let me follow up on what's going on in, certainly, in the investing area. do you think you're seeing more growth in these start-up companies that are starting from scratch as opposed to putting money into the public market? >> well, and it's been a short period of time. we launched last week, but we've been studying it since january or even into last year. over 50%, 45 to 50% of all the

investing is sitting in what i'll call the software app space. a lot of it coming out of silicon valley, boston, new york. that's really the hub. so we're trying to look at that. we're going to get involved. we've been approached by at least half a dozen venture companies, could we team up with you guys, and we'll look at that as well. but we really want to look across the country, and in canada, those are our two markets, and we're open to any great idea. we're going to actually have in our conference room right in birmingham, michigan, where companies will present to us and it will be like the shark tank, except we all like each other. so it should with a good experience for those companies. >> it sounds it. let me ask you about what's going on in the auto business. of course, tom, you left chrysler after it filed for bankruptcy during the financial crisis. amid a recent report that fiat is now in talks to buy it out. what's your outlook for the detroit automakers here? >> well, i think they're all very, very strong and they're all doing terrific here in the united states. they all have the challenges in europe and china is really where

the growth is going to be internationally. so i see them all being very, very strong. i mean, just think, it's record earnings, record sales over the last, let's say, six months here. i see continued growth in this particular market. their margins are up. their debt's way down. and, you know, i just think all three companies here are going to do tremendously well. >> and what about tesla? i see that you're probably not going to be investing in electronic c electric cars in the fund. i took a test drive of a tesla today, the electric car, what's your take? >> well, i think elon musk is absolutely one of the best ceos in the business. he's a visionary. i met him a number of years ago when i was running chrysler. the guy is great. he's a great visionary, a great strategic thinker. he's got a model here that wins. he's got a technology and a battery space no one else

followed. he's got a great opportunity there. he's a great leader and that's a great company. he's done a great job. >> do you think he's ahead of his time? is this where the industry is going, electric cars? i remember a long time ago, you know, carlos goen was out there pushing the electric car, but it didn't stick. people didn't buy it. >> i think what elon's done is he's the guy that leads the technology space. and he's taken a battery technology unique and he's got daimler, jotoyota, other compans behind him and he's got a volume play that's very, very profitable at low volumes. and that's the secret of why they're so successful. he's not even approached the rest of the world, he's staying focused here, low volumes, high profit, and high margins. i think the guy's got a winning formula. and i really like the guy personally as well. >> terrific. let me ask you this. you ran fisker automotive for a short time in 2012. the automaker is now looking for a buyer, facing financial

problems. did you see a problem at the start-up? >> they didn't have really enough cash and a enough financial wherewithal to really grow the business. and now they're looking throughout the world. i'm reading this like you are, to try to find a partner. i think they'll be successful. it's going to be very, very difficult because of their issue with the d.o.e. and the government and their play there. the government may force them into bankruptcy, which i think will be a big mistake. if they can find somebody that will keep it off bankruptcy, i think the brand can come back. but if it goes into bankruptcy, it will be pretty tough for them. >> all right, we will leave it there. sir, good to have you on the program. thanks so much. >> thanks a lot, maria. >> we'll see you soon. tom lasorda joining us. and the selli ing intensifi again. a lot of technical stuff going on, so we are seeing a lot of volatility and a lot of volume. the dow down 110 points right

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it's the end of the month, we've got rebalancing going on, flattening out the positions. we are off the lows, we were down 113, just a couple of months ago, up as high as 67 points at one point during the session. this does mark again another triple-digit trading range. the eighth trading day in a row of seeing moves like that. but if you can take a look quickly at a bond etf, the tlt, we did see a move up, right when we saw that first leg down around 3:00, we saw some heavy volume moving into this, but this is one indication of the market. and if i point out some of the weakness in the consumer staples. big names you don't often see fall as much as they are, pfizer down almost 3%. p&g, down 2.4%. remember, this is a group that's more sensitive to rising rates and we know that that ten-year, the yield, moving above that 2.19% level, or so, here. so some rebalancing going on. not a lot to worry about. we did see the vix move a bit higher. volatility moving up, some

volume moving in, the end of the month rebalancing. so wehle see what happens in the last 15 minutes of trade. you know this is a very, very active time of day and time of the month here too. >> let's see how nimble they are in the booth. call up kkd, krispy kreme. did you see what krispy kreme is doing today? >> huge move on the upside. >> better than expected earnings. it's up 22% right now. >> and it's had a huge move this year. >> it has doubled in the last six months. >> yeah. >> just saying, as they say. >> but, bill, this market, looking at the dow and s&p 500 on pace to close with the lowest levels in about 2 1/2 weeks. in the last two weeks, there happens to be a little bit of a sentiment change that people are now expecting that the fed will begin the tapering, sooner rather than the later. >> i'll be back! >> this year is obviously the beginning of the tapering. >> if this sell-off today is about the rebalancing, it will

be very interesting to see if monday they buy this dip or if this is the beginning of a sell-off. we've talked for weeks now whether this is the beginning of a change in momentum for the market. we're down to a 2 1/2 week low. this is going to be, if we continue this selling, be the first time this year we've had two consecutive down weeks for the dow and the s&p. >> i think they buy on the dip, but i think people will becoming a lot more selective in this market, looking really selectively for bargains. >> 12 minutes away from the closing bell for the day, for the week, for the month. >> and when we come back, david darst, why we're seeing this late-day weakness. and then, does an independent counsel need to investigating the irs scandal or should the house oversight committee handle it. eric cantor will weigh in later on the "closing bell." back in a moment. sidered all he, even those held elsewhere, giving her the confidence to pursue all her goals. when you want a financial advisor who sees the whole picture, turn to us.

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all right. so look at this market here. we just heard that there is some $3 billion for sale. >> and a veteran trader on the floor just told us that's the biggest he's ever seen. >> ever seen, he said. so we've got a market that's down 130 points. you've got to believe there are buyers for some of that $3 billion in stock for sale. because otherwise, it would be a lot worse than what it is right now, down 129 points.

>> the reason there's this much for sale, we think, is because of this rebalancing that's going on of a morgan stanley index, as a matter of fact. the international index, the msci. >> and here's david darst from morgan stanley wealth management and also with us, kyle harrington. explain it to us, the morgan stanley rebalancing, why this is causing so much chaos at the end of the day. >> maria, this can lead to tremendous portfolio shifts in the index. if you're underweight, you're going to be adding there. if you're overweight, versus the index, you're going to be selling. that creates this $3 billion imbalance. i would just say, maria, we saw you a minute ago driving the tesla car. >> right. >> let me just say, if you were driving it, it would never need to have a recharge of electricity, because it would come from you. >> that's good! i like that. >> it would come from you! >> thank you very much. kyle, what's your take on this? 135 points on the downside for the dow jones industrial average. >> it plays right into the theme

that we talked about a little bit offline, which is needing to be proactively patient and cautious with respect to taking any big bets at these levels, because you can see, maria, that at any point in time, the market doesn't now sell-off with these reactions 20, 30, 40 points, they're 150, 200-point drops. so you want to be very careful where you enter into the market if you have cash on the sidelines. >> we now have had a 200-point swing for the dow today. it was up 67 at the peak and down 133 right now. you don't sound like you'd buy this dip? >> i'm not going to buy this dip. i think there's still room for the dow jones to sell off a bit more. so we'll sit here and watch. >> what about you? >> the market's ahead of itself. you've had the philly fed, the chicago, the empire state, the factory orders, the durable goods orders, retail sales. retail sales have been weak. let the thing -- this is going to be the weak quarter, as you know. so it will pick up from here. so let the sing sell off a little bit here. it's also the weak quarter in earnings. but don't forget, if the

consensus is right, the third quarter is going to be 8%, and the fourth quarter, 13%. so if this happens, maria -- >> second half of the year is supposed to be better, but there's a little debate about that. >> and we're going into a weaker quarter, going into the summertime. people are going to sit back a little bit and i think watch the market. be patient. >> let me ask you, you said it's going to sell -- let it sell off a little bit. what's selling off a little bit. do you want to see it rotating out of here? do you want to see a thousand points? what do you want to see in order to say, i feel like i should buy the dip? >> the market in the last three years has only had -- it's had five 5% corrections. that's all. this year, the worst it's been is 3.2%, where it was a 20% correction after the august the 5th, 2011, debt downgrade of s&p by the u.s. government of the u.s. government, the treasuries. that's the only meaning of correction we've had. so sell-off, to your question, is 5 to 10% sell-off. then you're going to look at the

jobs. they're strong. the 222,000 a month. six months prior to that, 139,000 a month. you've got earnings, okay, picking up. housing picking up. so you've got a bunch of things going here that are good tailwinds to the market, but you want to let it settle down because of these. you want to see factory orders and retail sales pick up, maria. >> all right. good stuff. we've got to go. thank you, guys. >> we'll come back to the closing countdown, last one for the month of may and see how much volatility we get in the last few minutes. >> down 130 right now. did you know the world is coming close to ending one hour from right now? >> i did not know that. >> a giant asteroid is flying closer to earth than we'd like to see. >> is this a live picture we're looking at? >> but one company sees that's roi asteroids and sees opportunities. they want to mine these rocks for precious metal. you won't believe the investors who are backing this company. we'll tell you about it coming up on "closing bell." [ kitt ] you know what's impressive?

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sell and go away, the dow up 2% for the month, but we are finishing lower for the second week in a row. the best and worst-performing dow components for the month, verizon to the upside, for the month, not today, though. hewlett-packard was down. but it's been the best-performing dow component so far this year. a little confusing, but that's how it is. ten-year yield. this is one of the flies in the ointment for the stock market. the ten-year yield is up 29% this month. that's one of the problems for stocks right now. and threaten the volatility index, the vix, up 19% for this month. >> we're down 184 on the dow jones industrial average. ben willis, you've been walking around, first, tell us what's going on with the rebalance and it is all of the rebalance, or is this something else? >> i think this is mostly taking a profit off the table after a great run in may. so you take the last dirigible out of the market on may 31st and get out of the market, it's fine.

but you have $3 billion worth of stock for sale and it used to be a morgan stanley index, they sold it, but it's a major re-weighting throughout the entire stock market, not just the new york stock exchange. >> and you're saying that's not what this is all about? >> this last hundred points to the downside, i believe, is, but there's a lack of buyers because of the last day of the month. >> i'm going to run, i've got the next hour. eric cantor is our guest. very quickly, do you buy this on monday? >> no, no. if i'm long, i want out. >> why not? >> i don't want to go home long. as much as it might be a bias to the upside -- no, the bias to the upside may be with new money coming in the first day of the month, but i think what we're seeing is the correction that's been long-awaited for, all being driven by dividend-related plays. it showed the ten-year bond. take a look at the utilities. the utilities did not perform in this month. they were the worst-performing group, down on the month, not up on the month.

>> thanks, ben. >> a pleasure. >> have a good weekend. what a day this has turned out to be. is it a one-day phenomenon because of this rebalancing, or is it the beginning of the long-awaited correction? we'll have to wait to find out on monday. down 188 points on the close. stay tuned. house majority leader eric cantor is coming up on the second hour of the "closing bell," have a good weekend. and it is 4:00 on wall street. do you know where your money is. hi, everybody. welcome back to the "closing bell." i'm maria bartiromo on the floor of the new york stock exchange. a big sell-off on wall street today. the market is posting the first positive gain for the month of may since 2009, but nonetheless, look at how we're closing out this day, on a big day in terms of volume and a rebalance of the major index, the market sold off in the last hour of trading, down 203 points right now as things are settling out. it looks like the dow closes