dunkin brands up almost 20% year to date sitting at 39.77. >> way to end the show on a strong note, drury. she has not been hanging out with jamen shively, by the way. thanks for watching "street signs," everybody. >> "closing bell" is next. welcome to the "closing bell." i'm scott walker at the new york stock exchange where the market remains on edge after friday's violent selloff which, oh, by the way, started in this hour of trading. >> i'm kelly evans in for maria bartiromo. bill griffith as well. for now, buckle up. as scott said the next 60 minutes here could be pretty interesting. keeping an eye on things. dow is up 84 points. it wasn't until 3:00 p.m. on friday the bottom really dropped out of the market. >> absolutely. it's been volatile. five month winning streak for

the stock market. it's likely to remain so just given all the noise that's out there. huge week for data. fed speak. jobs report. fed meeting couple weeks away. >> we know this pattern. >> need i say more? >> no, no. we know there's a pattern where not only june a relatively weak month for stocks, but often as the first day of trading so goes the rest of the month. the fact we started out with two important data points this week, ism, jobs report. ism disappoints. pressure on the jobs report. a lot talking about what the fed does here. are they constrained? should we assume a knee jerk reaction there's going to be more accommodation if data is weaker. >> sell many may, never happen. will there be a june swoon? that remains to be seen. more reaction to where we are heading next with economist nouri nouriel roubini. he's not that optimistic. a stunning gold call as well. stay tuned for that interview. did ben bernanke just drop the hint about his immediate future and one that doesn't have the fed in it?

we'll listen to what he said and also find out what it might mean about how his unprecedented bond buying program might be unwound if he's not the guy doing the unwinding. >> lockhart's made some comments in the last hour as well. we'll talk about all of it. take a look as a matter of fact at the markets as we begin the final hour of trade. dow hanging on to a positive ga gain. 82 points. the nasdaq today which has been trying to get back towards the flat line. still not capable of doing quite that just yet. it's still down about eight points. broader market, s&p 500 has been hanging around the flat line. it's positive by three points. bob pisani missed all of the friday fun. he's back, however, today. what are traders saying about this final hour, bob? >> well, it's not like friday. not only so in index rebalancing but we saw money coming out of stocks and into bonds. that's not really happening today. however, there's a lot of cross currents. three of them, first, there's a lot of turmoil in turkey. the market down about 9%. we're watching that.

more important, kelly's right. ism, construction spending well below expectation. that's telling traders to think about pushing off the time line for the fed tapering. bonds strengthened. the dollar weakened. gold up. then of course watching the nikkei down almost 4% and trading even down more in the afterhours here. while the dow is up, i just want you to take a look at what's been going on in some of the major sectors. remember the leadership groups over the last month or so? they've been home building stocks, biotech stocks and semiconductor stocks. how they're all doing today. once again, all those stocks are to the downside. we saw japan moving to the downside as well. how about the dollar/yen breaking 100? that was a major move that we saw just about early in the morning. when we hit that 100, dropped below that, look at that right down here. technical levels really do matter. why do we keep yapping about the dollar/yen? there's a very good relationship between that and how our stock market has been performing this year. there it is. there's the green line. that's the dollar/yen. there's the white line. that's the s&p 500. this is a chart to far on the

year. as you can see, fwguys, that relationship is pretty good. hitting highs for the year just about the same time. that's why we watch the dollar/yen. back to you. >> bob, thanks so much. now let's break down this final hour with larry glazer from mayflower advisers. jeff soult from raymond james. chris gir sh over at the cme and warren myers from dme securities. good afternoon, gentlemen. larry, look, we start with you because you make the point here that the idea that bad news will be good news for stocks by keeping the fed in the game, you call that hypocrite cal and shortsighted. >> that's right. >> can you elaborate on that? >> absolutely. certainly when we look at the economic data we've been seeing whether it's today or last week the data has been inconsistent and inclonclusive. ism, not so good. auto sales, very good. this perversed idea traders have been living on, it's been income at any price in this market. the idea that we get disappointing news and all of our problems are solved i think is incredibly shortsighted.

we need to see higher rates here. we need to see the market show strength. we need to show economic growth. that's been the missing component. we still don't see that in economic data. that's why the fed is still in the game. personal opinion is higher rates would be a good thing for the market but the fed can't take its foot off the gas. they should but they won't. don't fret the taper. don't fret the fed. traders will be better serve es >> jeff, why aren't you worried? >> i think that the underinvested portfolio managers have not only performance risk, but they have bonus risk and ultimately they have job risk. i think they're going to chase stocks higher into tend of the quarter. i think pullbacks like we saw on friday are for buying. i think the s&p trades north of 1700 going into the first week of july. and then i think when you get into mid-july i do think you have the potential for the first decent pullback this year. >> warren, to larry's point about taper and the fed. lockhart was out within the last hour making some comments. headlines being the fed is getting closer to a decision on

its bond buying tapering. however, right now is not the time to taper bond buying. so says that man right there, dennis lockhart. he is the president and ceo of the atlanta fed. you guys on the floor who are in and out of stocks and who are -- who are, you know, running the action down here are going to have to try and decipher a lot of fed speak in the days ahead. and what impact that's going to have on the market. >> hmm. >> larry, we apologize. we can't hear larry's microphone. we'll try and work on that. chris girsh, to you. to that point of trying to decipher exactly what the fed is saying and what the impact on the market is going to be is going to be an enormous challenge over the next several weeks.

>> you know what, scott, you and i have talked about this a couple weeks ago. trying to guess what the fed is doing and why they're doing it, it's not a great plan. what i think a great plan is is focusing on the b of j right now. i think the yen more or less front run the s&p lower today. we had the ism number come out horrible. all the sudden the s&p futures recovered. they were positive. but we broke below that 100 level in the yen and it's continued to drift lower. that's what pulled our market lower today. we went all the way to that 99 level. that's really what really hit the s&p. so to us i believe if you look at the correlation between the s&p and the yen, bob pisani hit on it. i think that's the key player today. and we're going to see the futures are indicating a horrible open in the nikkei. if that carries over again to tomorrow, i think that we're going to have another huge correction tomorrow. >> jeff -- >> i think that correlation, by the way, is very dangerous. because every trader is watching the exact same trade. that's what gets us in trouble. i mean, that correlation becomes

manufactured. as we all stare at it we start to believe that is truly what's moving the market. at the end of the day it's the fundamentals in japan that are going to move the market. you got to get the nikkei noise of the yen off the table to focus on the fundamentals of exporters. that's what's missing. >> it's the fundamentals of the u.s. market that matters as well. to bring you back in, talk about this being a buying opportunity. are you not concerned about the kinds of comments we're hearing? scott mentioned this. you get a dennis lockhart. some of the fed officials who aren't typically in the hawkish camp talking about an exit. do you think it's because they're worried about the function and the impact qe is having and the sense that actually they may not be ready to just knee jerk react to any kind of selloff here? >> i would counsel you to watch what they do, not what they say. if you watch what the federal reserve is doing, i don't think they're going to taper on their bond purchase program any time soon. i think the good/good bad/bad economic fig rures are going to stutter step into the summer. i think the economy will reset

and strengthen in the fall of this year. in the near term i don't believe the fed is going to stop for one iota. >> warren myers back with us. apologize for the earlier problem with your mike. set us straight as to what's going to rule the day in the days ahead. you had the ism today as kelly has said. week bookended by the jobs report. probably a lot of noise in between. >> certainly a lot of noise. a lot of volatility like i was trying to say before based on all the information, both data and fed speaking here again in the next few days. the most important thing at least the traders down here are looking at are the nonfarm payrolls on friday. obviously that's what the fed is saying they're focusing in on is unemployment. that's going to be a big number one way or the other. i think until we get there you'll see a lot of volatility, noise. that's going to probably be the determining factor for the week. >> great. leave it there. bond volatility. we've been hearing that theme today. the vix is up. off its highs. only about a third of a point today. about 50 minutes to go before we close it up on this first trading day of the month

of june. right there the dow jones industrial average is hanging on to a gain of nearly 80 points. >> different story for the nasdaq which is negative and the s&p up a little bit. markets searching for direction. up next, if ben bernanke is on his way out of the federal reserve, who will unwind easy money policies he put into place and just how worried should we be? they're calling it the hindenburg omen. what is it? all you need to know. it relates to the current conditions of the stock market. and it has the word "hindenburg" in it. that can't be good, right? we're going to explain. after the bell? >> yep. dr. doom is here. he called himself dr. realist. nouriel roubini. his latest calls. gold, markets, real estate as well. the most important hour of the trading day continues right after this. [ male announcer ] let's say you pay your guy around 2% to manage your money.

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welcome back. fed chairman ben bernanke speaking to princeton grads over the weekend, giving them some tips for their future. maybe hinting about his own as well. >> i wrote recently to inquire about the status of my leave at the university. and the letter i got back began "regrettably, princeton receives many more qualified applicants for faculty positions than we can accommodate."

>> now he made it clear that was a joke. but the fed chairman's term does end at the end of january next year. that's just eight months from now and many say he's talking already like someone who has at least one eye on the door. so if he doesn't stick around for another term, will the market be concerned that someone other than the guy who swro deuced a lot of these measures will be charged with tapering the very stimulus? let's put the question now to mark cliff, chief economist with ing. our very own rick santelli. mark, welcome. how worried are you about bernanke being at the helm, potentially leaving just when we're focusing on more than ever on what the fed is going to do here? >> i think provided the handover is choreographed nicely, we shouldn't be in too much trouble. most people think that janet yellin is probably the favorite candidate to take over for bernanke. i think most people would expect her to operate in a similar fashion to him. >> that said, even if she's idealogically similar and even if she is the woman for the job, this isn't a clear cut exit by any means.

in fact, just the last couple of weeks would really seem to underscore some of the challenges here. look at what's happened in the mortgage market. look at some of the concerns you're seeing about people in the treasury market as well. >> this is what happens when monetary policy is being transmitted through asset prices. you know, the fed and the asset markets are chasing each other's tails here. that's the essential problem that we face. whereas before monetary policy was all about setting the fed funds rate. now the fed is quite consciously targeting asset prices. >> rick, as somebody who has been critical at times of mr. bernanke and the policies of the fed, do you think it's fair to worry about what the unwind would be under somebody else? >> you know, i think if we could find a way to put god himself in charge of the unwind, it would still be bumpy. in my opinion, there are people that i think would make the market more nervous than ben bernanke. but i don't think that anybody is going to be able to be brought in that has any

experience. because nobody with such experience exists. if i had my druthers, i'd like to have somebody like a mr. fisher from the -- richard fisher from the dallas fed just because he seems to have some common sense that i can agree with. and i think he was one of the first on the fed, even though he's not a voting member, to say the mortgage side has to end. we're disruptive to the mortgage markets via our buybacks. but, no, i don't think there -- we have an exit strategy. it's untested. we're now on the moon. somebody's going to have to navigate all of us back to earth. it's untested. i don't know who's doing it is going to make all that much difference, to be quite frank. >> so if it is so untested, why not have the guy who test drove the spaceship in the first place try and get us back to earth? >> well, if it is not that guy, janet yellen will be that guy. larry summers will be that guy. so most of the names flying around are going to keep the same stencil. i disagree. i think he sounds like a great guy. i think he gave a great speech. he has a wonderful sense of

humor. and i'm sure his heart's in the right place. but i think it's a bad plan. at this point i'm not so sure anybody can unwrap the bad plan. >> you want to react to that? >> well, i'm not sure what you mean by a bad plan here. i think he set out a very sensible plan on the contrary. i think there's going to be a very conditional, a very gradual and potentially reversible exit strategy implemented here. it will be bumpy, for sure. because we haven't been here before. i absolutely agree with you. but to say that it's a bad plan, i would disagree. >> rick? >> right now here's the plan. the plan is when the economy is good enough to take off the training wheels, we're going to stop buying treasuries and mortgages and taper and at some point raise interest rates. here's why it's a bad plan. if their trigger is when the economy is good, that event normally is going to have a major rise in interest rates. when you then add in the realism that the fed has been pushing their foot and coiling interest rates to a managed level, the

combination of both of them is going to be a dynamic move to the upside in rates, or a dynamic move to the downside in stocks or a combination of both. >> yeah. but my point there is the conditionality isn't just data dependent. it's also market dependent. the last thing that bernanke wants to see is a market meltdown. we went through 1994. we saw what a mess that was. the fed doesn't want to go there again. if there's any sign of the markets overreacting, that is precisely going to have an effect on the rate of tapering. that's why bernanke's absolutely right to say we're going to take it gradually. and it is potentially reversible. >> have you ever really met a condition that the market prices gradually? has anybody ever really seen the market price something big gradually? i really don't know that that's possible. >> you're quite candidly saying the fed is targeting the stock market. >> yeah. >> so is there any doubt at this point that we've seen a complete divorce between the market and fundamentals here? >> well, that's right. but the hope is, it's a boot

straps recovery, the asset prices are validated by the performance of the real economy. that's what's happening. it worked. the housing market is recovering. that's why the housing market is recovering. >> on zero interest rate policy. yeah. you know what? even i could open up a doughnut business if the cost of money is zero. but it's how that doughnut business does when i have to actually start paying the -- on my money. >> the good thing is, they don't have to worry about it. there's no inflation out there. they can concentrate on their day job. >> of course not. there won't be any inflation till the economy gets better and the velocity picks up. which is the third shoe that'll drop when they say the economy is good, we can stop. interest rates are going to normalize anyway. and the velocity in money picks up. watch out. then the seeds we've planted will grow. >> there's nothing necessarily to suggest that the moment the fed gets out of the way, assuming the economy is stable and healthy enough to do so, which it would obviously be if the fed were willing to step back, that there would be any

kind of run away of velocity to interest rates. >> there's no way you could say that. there's no way to prove it. we have no idea how the market will react. neither does ben bernanke. >> i think that's part of my point, right, rick? the people who say that there would be a huge jump in interest rates at a dangerous velocity, they don't know either. that's the whole point. >> right, right. so we have all in. in for a penny. in for a pound. double or nothing. i just think that's a pretty high risk game to be playing. >> let me just ask about this. it's a little bit of what of the chatter i'm starting to hear which is to say if we don't get to phase three, so we're starting to see rebounds in the housing market as you say. not necessarily the healthiest market that we'd like, right? >> yeah. >> if we're starting to see the economy doing better but not as much as we'd like and inflation is coming down, if we can't get to phase three and the fed has to do more, i realize this is not the conventional view, but if they actually have to do more, can they? >> why not? >> what happens if they're constrained by not being able to buy any more of the mortgage backed security -- >> absolutely. two years ago would you have

expected the fed to be in the position it's in now? no, you wouldn't. i don't see there's any reason why they couldn't do more. there's no reason. >> i agree. >> what would they buy if they had to? >> whatever they think is relevant. obviously the housing market looks in good shape. you'd probably want to step back a little bit on the mortgage backed security side. maybe you want to buy more treasuries. they have all the options in front of them. >> rick, i mean, as much as you might be loathe to do it, wouldn't -- wouldn't you give the fed at least at this point the benefit of the doubt in the fact that they've instituted the policy that they have against a lot of nay sayers who thought it would already lead to higher inflation than currently exists. they seem to be pulling it off quite well. i think you would admit. >> no, no. just stop there. >> what's wrong with that? >> the answer is no. >> why? what's the evidence to suggest otherwise? >> to take savers' money and put it on the balance sheet, take corporate america and basically put their debt on the balance sheet of the fed approaching, what, $3.5 trillion and to have

banks, the too big to fail banks making record profits where there's still so much unemployment, the reason the president doesn't take credit for the stock market is because his own -- doesn't seem to be benefiting very much. no. i give him credit for the commercial paper program. that's what i'll give them. and their asset backed program. those programs over a number of years ago worked very well. i like the fact that they protected savers' money. sheila bair and the fdic. when the crisis ended three years ago, he would have gotten to the end of these programs, he'd be in a much better place today. >> mark, you want to just last word on that? >> well, i just think we would have been in a very horrible place if we hadn't seen the quantitative easing that we've had over the last couple of years. i think we would have had the deflation that bernanke so fears. >> guys, we'll make that the last word. rick, thanks to you as always. mark, thanks to you as well. breaking news on auto sales right now. phil lebeau has some details.

phil? >> all the numbers are in and the may auto sales pace, 15.31 million vehicles. that's a little more than most were estimates. most were expecting 15.1, maybe 15.2. may auto aesales an increase of% compared to may of last year. 15.31 million vehicles. that's the pace for the month of may. back to you. >> all right, phil, thank you. now, we've got, what? about half an hour. >> 35 minutes left. >> 35 minutes. thank you for doing the math. to go before the markets close. >> you're new to post nine. i'll show you where the clock is in a second. we're all good. >> 89 points up on the dow. as i mentioned, we are seeing underperformance from the nasdaq in particular which is lower by about a tenth of 1%. s&p trying to hold on to some small gains here. take a look at apple shares down about 16% so far this year. but are there new signs it's bottomed? and is it safe for investors to take a bite out of this one with new money? tesla shares, they're also losing even more steam today. that stock fading after a red

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to enjoy all of these years. ♪ take a look at shares of zynga. they're down more than 5% after reopening and announcing that they're cutting 18% of the workforce. they've announced job cuts in the past. but these go deeper and potentially problems at the company do as well. want to show you apple

shares. they're down a whopping 36% since hitting an all-time high last september. but shareholders may finally have a reason to breathe a sigh of relief. those with fresh money might want to pay attention to this, josh lipton. >> the stars could be aligning for apple. let's review the reasons both technical and fundamental. one, ceo tim cook has finally stepped out from steve jobs' shadow. the senate, remember, hauled cook in last month to explain the taxes the company pays on foreign profits. a confident cook turned the tables on lawmakers, emphasizing apple's contribution to the country. second, big investors are fans, including david einhorn and john c calamos. apple also giving more back to owners returning $100 billion to shareholders by 2015. options traders also bullish. goldman sachs advises clients to take a bullish position through call contracts ahead of the worldwide developers conference on june 10th. there might be more visibility at the conference and beyond

about the company's product cycle. analysts say a watch, an electronic wallet, smart pen and greater automotive integration could all be ahead for apple. finally, the tech nnicals. apple breakout above the so-called neckline of 460, 470, could mean the next stop for the stock is the 200 day moving average at 525. of course, not everybody is an apple bull. andy hargrave of pacific crest has a hold on the stock. he says the high end of the smartphone market is tapped out. second, diminished te mand for incremental innovation. meaning when a new phone comes out, some buy but others are fine with a cheaper version. kelly, back to you. >> josh, thanks for that. let's pick up actually with that bullish head and shoulders pattern you mentioned. has apple really bottomed here? let's talk numbers on the technical side with carter worth, chief market technician with oppenheimer. and enis tanner. good afternoon to you both. carter, let's start with you.

what do you see in the charts? >> it's constructive. the data action is impressive and the relative strength, meaning apple's holding up well in a period when the market's been choppy of late. what's key from the chart point of view, drops from a high of 705 to 385, down 55%, they've broken above a well defined down trend that's been in effect for the past year. as cited by the previous person, it is a minor head and shoulders bottom formation you can also see in the chart. either way it's about how much downside risk is there versus upside reward. asymmetrical. limited downside risk what we can see. plenty of upside potential. we like it. >> enis, do you see it the same way. >> i would say the risk/reward proposition for apple today is much, much better than the past six months. but i think the risk/reward proposition is symmetrical rather than asymmetrical. i'd say there's 10% to 15% downside in the stock. also only 10% to 15% upside. despite all of the talk ahead of the conference on june 10th,

two-thirds of apple's profits still come from the phone. the phone business is what's going to drive profit growth going forward. it's what took this stock to $700. that's where the innovation has to happen. >> carter? >> well, you know, it's interesting. here's an anecdote i think is very important as well. go to client meetings. biggest pension plans, the stock never comes up. it was the first stock in the first meeting every day. now one out of two meetings i go to, people don't even talk about it. it's been left behind. that's key. people don't want to hear about it. they are discouraged. that's usually when something has been abondened and given up on. >> carter, what is the first stock people mention? >> it depends on what group is in favor. housing to energy. it was always apple for the last year. a whole meeting, hour, hour and a half, no mention of apple. >> enis? >> i think there's been a significant switch of holders of the stock from growth to value investors to carter's point. that doesn't necessarily mean the stock has plenty of upside. i think it's a range bound name as best. >> all right. gentlemen, thank you very much. full online version of talking numbers available, of course, at

talkingnumbers.cnbc.com. dow is up 83.5. s&p -- have you heard this. dreaded hindenburg omen is making the rounds today. never a good idea to link the hindenburg with stock markets. what exactly is it and how much should you worry? >> is it good to link the hindenburg with anything positive as you look at that picture? >> model of it is in the european headquarters council building as well in brussels. interesting. >> there's a good segue. dr. too many. hello. is he buying into the hindenburg omen? nouriel is going to join us exclusively at 4:10. you definitely want to hear what he has to say. 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

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for an uplifts note, the hindenburg is known as one of history's great air disaster. when the word "hindenburg" is tied into anything market related, traders and analysts take notice. like they are today with the hindenburg omen. >> yes. given that, we wanted to explain just what the hindenburg omen is and what it really means. we're joined now by jonathan krasy from miller taybeck and kenny from o'neill securities. welcome, gents. jonathan, could we start with you and maybe give people a brief sense of what the hindenburg omen is? >> brief. preferly before the sun comes down. >> four basic rates. the number of nyse stocks making both 52 week highs and 52 week lows to be over a certain percentage of total securities traded, about 2.2%. second the 50-day moving average to be rising when this occurs. third, you need the mcclellan oscillator, an internal breath pressure to be negative. then finally, you need the number of -- there's a rule that the amount of 52-week highs cannot be more than double the number of 52-week lows. >> that wasn't too painful,

actually. how common is this, though? >> well, so for it to signal, you just need that to occur one time. it happens one time fairly regularly. last time, i believe, was august 2010. but to actually get the omen, you need it to occur twice within a 30-day period. which is what we yus had recently. >> when did that happen? >> the first one was april 15th. we got another signal may 29th. a third one on friday. >> kenny, i see the dow right now not acting like the hindenburg. >> no. >> it's going up. it's going up as we speak. it's been going up for five straight months. >> i'm not necessarily a big buyer of this particular technical omen, right? i think it's great to talk about, all that stuff. i toedon't put a lot of credencn it. the world has changed so much since they first designed it. tl there's so many other factors that affect market action. friday is a perfect example of just the market breaking certain technical levels and just it all piled on. gave people a reason to take

some money off the table. >> i would agree. if you look at the percentage of components that made 52-week lows on last wednesday, about 80% were actually closed in bond funds. it's like like in '07 where you had a lot of the actual financials and consumer discretionary making 52-week lows. >> is it more of an omen, then, to the bond market? >> that's certainly a valid argument. >> they also talk about the hindenburg, they talk about a stock market crash. a word like that can be very unnerving to people. a crash is not a 3% or 4% correction. a crash would be a 15% or 20% correction over a very short period of time. two or three days. all of the sudden, bang, it just happens. a market that's off 15% or 20% over six or eight months is a bear market, not a crash. there's a difference. i think when people say the hindenburg omen creates a stock market crash, people -- >> it also raises just the issue in and of itself of how much credence you should put into techny c nnicals at this partic time in the market cycle given how high, how far and how fast we've gotten here.

>> absolutely. i mean, when you talk about a crash, japan was down 19% if you look at wednesday, may 23rd, to the futures, nikkei futures this morning. that's -- >> that's right. but put it in perspective. because it was up 45%. so a crash of 19%, yes. it's still a big move. but the market is still up 20%. >> the criticism about the hindenburg omen, people liked it because it has predicted these crashes. but it's kind of like people who say the stock market has pred t predicted nine of the last five recessions. >> you never want to put too many -- too many decisions on one indicator. it's certainly worth noting. >> if you're looking for signs of confirmation or more reliable technical gauges, anything jump out at you now? >> the only thing i would look at if you're talking about more weakness is the speed at which you might see the market once again start to break levels and sell off like you did see on friday. we're not seeing that right now. you're seeing a little bit of a bounce. i to think we're in the 1600,

1645 new trading range, though. for a while the market needs to catch up with itself. >> i would agree 100%. we've been looking for a possible test to the 50-day moving average on the s&p. down around 1600. i don't think there's anything wrong with that in the bigger picture. >> and it's not a crash. >> no. >> guys, good to talk to you. thanks. kenny pulcari, got to see you. 1635 speaking of which on the s&p now. now about 21 minutes to go before the close, scott. highs of the day for dow. s.a.c. capital bracing for investors to pull billions from the hedge fund today as a key headline hits. after the bell, we'll show you ten years -- we'll show you how ten years of early retirement savings can actually be worth more than 30 year of saving later on. it's no trick and you'll want to find out. with the way things are.evey

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dell." today is redemption deadline day at s.a.c. capital. the embattled hedge fund could see billions pulled out by investors. >> kate kelly has the latest on this evolving story. >> it's been a long day for s.a.c. officials as they handle investors' demands for their money back. it could get even longer as they continue to field inquiries right up until midnight tonight. the exact numbers aren't yet clear but the betting is not good so far. year to date the $15 billion hedge fund has already sustained paper redemptions of 1.7 billion. that's nearly a third of the 6 billion total it manages from external investor. this quarter expectations are, just expectations at this point, but that they could lose a big chunk of the roughly $4 billion in outside money that still remains leaving them primarily with founder steve cohen's $9 billion in capital plus a few hundred million or so in addition. some investors have already made clear their intention to withdraw. in recent weeks ironwood capital pulled 100 million. blackstone group has laid the ground work to pull substantial

capital, probably in the hundreds of millions, but we don't know exactly how much yet. what's happening with other players like morgan stanley and hsbc is not yet clear, but is likely to be closely watched. others have pledged loyalty, though, including sky bridge capital and chapwood investments. but there's no doubt that losing even a small majority -- or, yeah, a small majority, a little more than 50%, that is, of the remaining outside money could be a huge blow, kelly and scott. one that could be hard to recover from. >> yeah. kate, thank you very much. kate kelly with the latest. as we watch a market, by the way, that's now up triple to the best of my knowledge its, 102 points, a complete reversal from what we saw friday when you had that last 30 minutes of trading as a meltdown for stocks, right now you're getting a melt up. highs of the day here as you have some buyers coming in. you know, some of the leadership stocks today, intel, got an upgrade today. that stock up 3.5%. it's been a stealth performer year to date. not talked about a lot. it's had a pretty good run. biotech doing well. some of the health care stocks like merck. microsoft higher today. bristol myers is up better than

3%. some positive data out of that asco conference up in chicago. >> absolutely. >> has brought some good news for those stocks. >> if you want to know why we're up triple digits on the dow and nasdaq is just now turning positive, a lot to do with two names you just mentioned. merck and intel. that's really helping us get to this point. again, we're seeing a little more of a confirmation across the s&p and nasdaq now. some of the tech names including zynga weighing on the performance of tech. zynga just announcing they will be laying off more staff. closing a couple of its offices. those shares halted twice, now down more than 10% as we check in and follow that story. mobile, this is a week spot for them. >> for the first time all day, by the way, the nasdaq has now turned positive. it's by just about a point or so. but significant in the fact that at least it's gone positive as the overall market has added some steam here in the last, oh, 15, 20 minutes. >> we know once again first day of trade, not just because it's june which is a traditionally

weak among, but the signal it sets for the rest of the month is particularly important. it comes as we've gotten weak data today. the question remains what are people calculating the fed does here? huge question. >> many what is a huge week. culminates with the jobs report on friday. dow is at high of the day. 114 and change. 15 minutes to go here on this first trading day of june. >> we have seen an increase in volatile today, too. steve nemith saying investors should buckle up a while for the summer. why one of the biggest bulls on wall street is starting to get cautious. madison square garden at odds with the city of new york over a plan that could force the self-proclaimed world's most famous arena to move. coming up, msg ceo hank rattner joins us exclusively to explain exactly what is going on. [ female announcer ] there's one thing

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want to show you once again what the markets are doing. because we are at the highs of the day as this final half hour melt up continues on the first trading day of the month of june. the dow is up nearly 120 points today. getting a lot of help from intel which was upgraded today. merck is doing quite well. some of the other names like boeing is up nearly 2%. so the june swoon, at least, is not being seen as of yet.

>> we need a new rhyme. >> a five month winning streak as well. this kicks off an incredibly busy week. >> a lot of global head winds, too. we've been watching the nikkei, what's happening in europe which is broadly in the red today. it took a key from the tone that we closed at on friday. the big question was going to be how would markets respond today and would we see buying into this weakness. the answer at least for right now seems to be a qualified yes. >> let's find out what a couple experts think about all this. where we are now, where we go from here. steve nemith and robert russell from russell & co. joins us as well. steve, what do you take from the sort of nasty way we closed out the month of may on friday and then now where we are here up triple digits? >> yeah, i think -- >> is it a sign of something? >> to kelly's point, some of the economic data globally has been a little soft. germany. the japanese stock market coming down suggests that we might be facing another deflationary event. so i think bonds are picking up

again today. and people who are worried about the fed tapering, their buying program, are probably thinking that might have got pushed off. i think that's why the market's up a little bit today. >> is this, robert, just a sign of what the next several weeks are going to be like? volatility, volatility, volatility? >> yeah, scott, i think so. i think we're going to continue to see this -- this bipolar theme in the markets where, you know, on one side, you've got the fed that is unstoppable. you can't compete with the fed. on the other side of the ring, you've got economic data that is -- is, you know, good at best. and so investors are looking right now to see, should they be taking some profits or whatnot? i think we're going to have a lot of volatility on both sides here for the rest of the month. and it's important for investors to think about this not in a two-dimensional way but a three-dimensional way. >> steve, wait. what do you mean by that? in a three-dimensional way?

>> yeah. so a lot of people look at the markets in two dimensions. they think stocks and they think bonds. it's so much more than that, isn't it? you have alternative investments that should be included in their portfolio. things that include, like, managed futures, you know, principal protected accounts like fixed annuities. and opportunistic real estate portfolios. the things that are not correlated to the markets. that's the key. >> steve, i just want to ask because you're both kind of talking about volatility here. and jitters to some extent. we've seen this pattern where we're seeing more intraday volatility than at the close. we've done a round trip today. we were up a good point on vix. now we're back, almost unchanged. should we take heart from that? >> it was incredible this morning watching the market go up. you were waiting for it to spike up 200 or come down 200. i think investors are really nervous. i think the bet you want to put on now, for viewers right now, go to the internet and look at a chart of the s&p 500, over the last three years we've had big selloffs in may and june in the

summertime frame. 10% to 20%. seeing the japanese market pull back the way it is now makes you wonder, can it happen here? i've said this for about three weeks. the market's been up a couple of percent. you haven't made a bad mistake by taking your -- keeping your powder dry. but i would wait a little bit longer. hope for a pullback. maybe there's a better opportunity to buy. >> if you do have a better opportunity and you do get in, will you change the way you're investing? will the makeup of the rally, once it resumes, if, in fact, it does, look different than what got us here away from more defensive plays? and into more cyclical, more risk on type plays? >> i think they're going to split the difference. when you started off the segment you noticed intel and merck are up. intel might be slitting up the company. somewhere in between. these are big name blue chip kind of companies at low multiples that have international exposure that are leading the market. i think the next month whether the market is up or down those will lead the way.

>> robert, a quick question to you. a lot of these alternative investments are often yield plays at a time when we're talking about a lot of changes in the way investors are looking at yield. is that a consideration here? >> yeah, absolutely. especially for people approaching retirement or in retireme retirement. it is all about yield, isn't it? it's all about income. and just like your investment strategy, your income strategy should be diversified as well. you need to have a guaranteed income stream and then an income stream that's based on dividend yields from reits and different high dividend paying stocks and global equities. that's the key. not go all in on one strategy. >> sorry. my point being if we're at a period of time when people are considering higher rates and -- >> absolutely. you've seen kind of that downward pressure on the fixed income market as well. it's because of the fed, you know, telegraphing that they may start slowing down. that's not going to happen any

time soon by any stretch of the imagination. not in my opinion, at least. >> yeah. >> so people would be better to lower their duration on the fixed income side. >> right. robert, thanks. steve, thanks as always. >> robert russell, steve neimith. >> right back with the closing countdown. just about five minutes to go here. dow up 120 points. >> gaining back some of friday's big selloff. is it only a matter of time until this market faces a serious correction? or does this remain a buy on the tip stock market. nouriel roubini weighs in exclusively on the "closing bell." you'ring cnbc, first in business worldwide. i'm thinking about china, brazil, india. the world's a big place. i want to be a part of it. ishares international etfs. emerging markets and single countries. find out why nine out of ten large professional investors choose ishares for their etfs. ishares by blackrock. call 1-800-ishares for a prospectus, which includes investment objectives, risks, charges and expenses. read and consider it carefully before investing.

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♪ all right. welcome back to the floor of the new york stock exchange. it's time now for the closing countdown. i'll take you right to the board here and show you where we stand. because friday's late day meltdown is almost a distant memory here as you've had a late day melt up here in the last 30 minutes of trade. take a look at the dow. just about the highs of the day, up 120 points or there abouts. what's accounted for much of it? take a look at two stocks here. intel got an upgrade today. that's been a lot. that stock has had a nice day today, up almost 4%. merck as well with some positive news coming out of that conference up in chicago. that stock adding as well about 4%. let's turn to peter costa with empire executions. i should have known the market was going to go up, peter. tomorrow is? >> tuesday. >> the market's been up on, like, 20 consecutive tuesdays.

i almost forgot about that. that's what's at play. >> if you look at it, you think that's probably part of this. a lot of people are going to get in, try to take advantage of this anomaly. and i hope that they're not disappointed. but, you know, there's nothing to stop it from being up 21. >> what are you thinking about now this week? ism today was weak. you're going to get more data. it's going to be book enlded at the end of the week by the jobs report which is nothing short of critical. >> i think the jobs report is what everybody truly should look for. i'm expecting better numbers. maybe that's me. that closet bullishness that i have. but i am expecting better numbers on friday. and i think that, you know, leading into it, we'll probably have a very volatile week. >> plus 135 now on the dow. we're accelerating the gains here. does it matter at all when people say the market is tired? i mean, so what? does it matter? >> no, it doesn't. it was tired three months ago. the markets got up, you know, 9% from three months ago.

no, i don't think it matters. you still have to look where educational are y else are you going to put your money and get the return you have here. there's a risk/reward ratio. the risk is still pretty good here. >> always appreciate it, peter costa. thanks very much. back on the desk for the second hour of the "closing bell." see you in just a moment. stocks are rallying back after friday's big late day selloff. today it's more of a late day rally. welcome to the "closing bell." i'm kelly evens. maria bartiromo is back tomorrow. scott wapner is here for bill griffith. the dow jones industrial average adding about 136 points, almost 1%. the nasdaq which was negative for most of the trading session turned positive in the end there adding almost ten points. same goes for the s&p 500 adding about .6 of 1%. we've certainly seen that one, scott, whipping around all day. >> heck of a late day gain. nice rally for the