>> power lunch begins now. >> and the dough is now back in black for the week and what a week it has been. this is market that does have nine lives, maybe cat's eyes. we are going to take a special street signs look at what has been and what is to come. and in hon.

>> today we are higher and it tees best gain for the dow since -- the s&p is now positive for the week with today's gain which means it may avoid the first three day losing streaks. as for the medals they are getting whacked today. not looking too good. let's get straight down to the trading floor. you know what? you have said that you thought the perils was just strong enough to continue their talk of tapering. >> remember, people do want the

economy to improve. good news can be good news and hopefully will be down the road. they have been jawboning about tapering for weeks now. perhaps the market is getting a little more used to the concept. heaven knows four, five, six months maybe we will get close to 6.5%. i think overall we should take it for what it is. i want to point out that the dow jones industrials have moved. yesterday we were down more than 100 points. there's the turn-around. that late day rally certainly may have been a factor. sectors today, more of a risk on. we saw the dollar yen. most people feel it's not

happening. $9 billion out of bond funds. small money into stock funds. there is your big kahuna. continuing to the downside today. and if you look at high yield take a look at the hyg. you can see the same situation there is no avalanche of money out but keep an eye when you see money moving a little bit every week and then it's going to happen. >> i believe that's a nirs. bob, we're not done with you yet. rick, are the dollars up? yields are up.

where do we go from here? we are flirting with the potential highest yield close. i look at the dollar yen at 97.5 last week. it closed at 100.5. it traded down about six, seven hours ago to 95. it's not by design or choice but it would be the arena. the fannie are hofring. yesterday there were ruse mmore be a large bank buying some of the securities.

>> well, certainly until today, the market theme could have been red rain instead of back in black. it looked sad. the last couple of days it was bad. that is a 460 point swing this week. we have still got more than 90 minutes to go in trading. it has been one of the most volatile weeks we have seen in a long, long time. and scott, senior equity strategist, gentlemen? great to have you on the show. do we need to strap ourselves in? >> well, you know, in general, i think investors out there

without a plan and conviction not only for the summer but looking out over the next couple of years are going to have a really rough time because what you have to be able to do in today's market is separate volatility from risk. and what i mean by that is if you're an investor and you have got let's say a million dollar portfolio and you now are retiring and you need to generate income from that if you're not going to be able to survive off of $25,000 a year? you're going to need to shift into different asset classes. there is going be no inflation or rise in interest rates. you're going to need to shift out on the spectrum and you will be experiencing greater volatility. >> the problem is whether i'm

going to buy stocks or bonds. what should people will looking at? it's not just bonds or stocks but vietnamese stocks. >> there is going to be a time for emerging markets. you r you're going to to get the most bang for your buck. i welcome this volatility. i'm surprised it took this long to kind of generate. but, you know, i think we're in for several months with volatility that will create opportunities. over the next 12 or 18 months, i think the s&p 500 has a good chance of trading noticeably higher. so we want our clients in that. >> i think that probably by the end of 2014, we're looking at a

pretty good gain. we want our clients in here buying stocks. we're in for another couple of good years. >> you see stocks ending higher. do you also see 1800 on the s&ped a the end of next year a possibility? >> absolutely. i agree completely with that. it's not just staying here in the u.s. we are increasing our allocation to emerging markets. if you're sitting in the safe havens right now and you're looking at the beta of utilities and tell con and beta of bonds you're used to those being low volatility types of assets. that's going to increase. those are the people that took

the biggest hit. what your own personal needs are as an investor. not what the bond marks are doing. >> what should we avoid at all costs. >> the fed is confusing the market. are they going to taper? or are they not? you have guys talking both sides of the thing and that may be on purpose. but, i think right now what you want to do is you do not want to be overweight things like health care, utilities, staples. if you think that the u.s. economy is going to continue to recover here. if you think there is any chance that china is going to bounce back a little, and europe is going to improve, you want to make sure you're long equities.

the things that are going to benefit from a continuation of this expansion. that's the place to be for the next year and a half. >> all right. both gentlemen. >> steve as he always does so well because he's the best of the business. it would mickey make us all look very smart. >> i'm going to order a martini. >> with a little bit of economic nodology on the side. >> how can it be that the unemployment rate went up with that many jobs created. here is one thing. >> that is a fact.

>> sit a fact? >> that's one of the other nerdy nuggets. >> employment went up. let's go to the next screen. the next thing i want to look at is the unemployed versus the underemployed. 13.8% of the population is underemployed versus the total who are unemployed. look at that. one more thing that i want to share with you which is the people working part time for economic reasons. they want full-time jobs. they can't get them. even though the job market is doing a little bit better than we had expecked. rsh how many more months do we need to see before we hit the fed threshold of a lot depends

that it's a whole other nerd alert which is the number of jobs that we need to bring down the rate. >> and how many babies people are having and immigration. >> and how many people count themselves and retirement, people leaving the work force. that would bring down the unemployment rate. we know enough to say that it's going to be at least five to seven years if we did. >> what the fed is hoping for is a place where the job market takes off. 250, 300. >> we can talk taper all we like but we need to hit that threshold.

>> the job market is taking off in canada. >> those numbers are up and down like this. >> canadians are up and down like that. up next, extreme make-over j.c. penney edition. we're going to do what tv does and we will show you with real life video. >> if you are like most of us, allergy meds are not cutting it at all this year. could one pill change all of that? and also cicada mania. we went out and asked people a simple question: how old is the oldest person you've known? we gave people a sticker and had them show us. we learned a lot of us have known someone who's lived well into their 90s. and that's a great thing. but even though we're living longer, one thing that hasn't changed: the official retirement age. ♪ the question is how do you make sure you have the money you need to enjoy all of these years.

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>> j.c. penney launching its home department in a big way. >> last night everyone gathered for a house warming event to celebrate the retailer's much anticipated new home collection. we were told that our dot come business is likely to grow. for the last seven years it has been the retailer's worst performing category.

prices may be too high. he likened the merchandise in j.c. penney's sephora shops. >> you're pretty bullish on the

name. the new stores look nice but will it matter? will people start shopping at j.c. penney again? >> i think you have got to look back at what happened last year. >> in other words, buyer be ware. what should they be ware of? >> i think like, you know, any time you go through what j.c. penney did last year. there is a big chance that they

fired their customer permanently. we're going to have to see how traffic responds. traffic and transactions have responded favorably. we're going to keep an eye on it. what happened to its customer. >> chuck's a smart guy. here is the thing. we act like going back to mike and what they used to be, we're going back to what they used to be? they used to be a failing retailer. what they were doing was not working. now the old guy is back and

everything is fine. everything wasn't fine before. that's not really a question. >> chuck and i made the a list. those stores look significantly different than they did before the billion went in. and the home department is as good a looking home department as anywhere else. it's prettier than macy's. we don't know that yet. i don't know about you but every time i turn on my tv now i get a j.c. penney ad. they are pushing it hard and customers respond to that. i believe there is enough of them to buy the home product.

>> martha stewart made the a list. let's listen to what she had to say to courtney. >> i joined because ron johnson was there with a new concept. i thought it was a very appealing concept. now it's changed and i have yet to see the success of it. >> it doesn't sound like she's too thrilled but a number of other designers sound the same way. i'm not a fan of big discounting but i'm not running j.c. penney. one said that he likes anything that brings the cost down and he is taking advantage of the sale this week.

way to go. if there is a sale i'm taking advantage of it. >> thank you very much. >> to be continued. just ahead on street signs. meeting with his chinese counter part in just a matter of hours. the three things you need to watch next. >> allergy season may make you miserable but we are here to help and we're going to make it better by telling you how you can profit.

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>> president obama defending the secret surveillance program just a short time ago. he said some pretty interesting things. >> the first part which he took the advantage of at a health care event here in california was to try to put out the media fire storm about national security agencies surveillance by convincing american people directly that it has helped chemothem safe.

>> increased some of the safeguards. but my assessment and my team's assessment was that they help us prevent terrorist attacks. >> the second part of the challenge is to sustain and follow through on his efforts in a casual informal setting. that is vital to elevating american business which is cracking down on chinese cyber hacking. >> it's always on the margins of apeck or the g-20. that's not good enough. we need a dedicated head of

state to head of state type of set of summitry. >> it is an entirely awkward day but as the president is discovering again today, the news of the day does not always match your messaging priorities. >> thank you very much for that. >> what exactly is at stake? >> brian, in your article, you note that the presidents have only spent 90 minutes together in the same room.

>> you have to look at this as a get to know you meeting. you have two presidents. they will get to spend two days together. that will be some off the cuff discussions. they begin to lay the ground work. president obama will be here for more than three years. if you can start here, get agreement on issues where there may be overlap, hopefully there will be more down the line. >> i wondering whether or not we can play well with china. at the same time as not giving them a free pass. >> one area is it seems like china is pushing over harder. chi. now they are tut.

>> it's going to be very hard. china has been relenting in saying that it's not doing this. they're trying to increase spending and influence in their own region. cyber hacking for them is something that fits in a way to compete with a stronger united states. >> we have to leave it there. brian, thank you so much. >> absolutely fascinating issue. coming up, phone, food, and farmer edition of street talk. >> and a story that is sure to bug you. the cicada market happens once ever 17 years. change makes people nervous. but i see a world bursting with opportunity, with ideas, with ambition. i'm thinking about china, brazil, india. the world's a big place. i want to be a part of it. ishares international etfs.

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>> welcome back to street signs. some news just breaking here on ge. the ge finance chief will become head of ge capital. this is supposed to happen this summer. of course, a veteran, a fixture in this industry. somebody who helped guide ge through the financial crisis.

ge finance chief has become head of ge capital. >> okay. thank you very much for that. let's get to street talk, a friday edition. let's hit up five stocks real quick for you. at&t is moving lower. >> $500,000 seen for the second quarter. i want to present this to you. bullish. >> raising estimates. they say the inflection point is here and does believe that sales will recover in china with a slump after food safety concerns. a third one from the same company.

the play, 33 funds they track along the stock back up from 32% last quarter. >> goes to buy from neutral. two bucks more. >> and rally, very fitting for the day. >> right around a market cap company. working around the software eco-system. i don't fully understand that eco-system. here is that company. they beat second quarter estimates. revenue is better. >> well, cicada mania is here.

it has been 17 years since the last invasion of the insects. so, you know what? we thought it would be fun, right, to see which douw stock has done the best. so. joining us now is cnbc contributor josh brown. great to have you with us. 17 years hence. >> as you know, i have spent the last 17 years studying cicadas. >> you and i both. absolutely. every single night. getting ready for our insect overloads. >> yes, so 17 years from now, what this requires you to do is think about these really large demographic trends that are essentially undeniable.

and the first one that springs to mind globally is the aging population. so the pick here in the they have got six phase three drugs ready to launch. these guys are addressing everything from ovarian cancer to osteoporosis. they are pretty much all over the map. the one thing that is assured is that the baby boomers will be spending more and more every year between now and 2030 on drugs and health care. >> we will be talking about it very sharply. >> what's that? >> you have to wait until the segment. >> i know what the p-38 space modulator is. >> it makes your immune.

>> we're all aging. why is this one so much better? >> this has the best pipeline. this is not a financial engineering story although they are paying a dividend close to 4%. >> the other name i want to mention is not a dough stock but will be one by the time we all revisit. that's google. look, google, you couldn't put it in the dow now. i think at a certain point this one has to be added. >> i like the analogy you make that it's like owning ge at the turn of the last century.

>> you have to think about google as you would have thought about ge. the web, it's very clear that the lines will be blurred further and further in terms of reality and digital if you have a four or five-year-old that he has got an ipad then you know all i know is this is the company that is taking those type of moon shot approaches to research and i would not be surprised if they continue to find discuss. >> hold your nose. we are going to tell you how to profit from pollen. >> plus something happened on this day 37 years ago that sparked a national phenomenon. we're going to tell you what it is. but first let's go out to bill

griffin. >> we will find out how he says confidence in this market could be improved and get the retail investor off of the sidelines. we will ask former economic advisors whether she is a candidate to he is one of the biggest stars, action stars in the 1980s. it's a new case coming up on the closing bell.

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♪ all on thinkorswim. from td ameritrade. >> that's right in 1976 new saturday night published that launched the career of john travolta, the movie saturday night fever and a big boost for the beegees as well. the author admitted it was made

up later but didn't stop people from buying into the disco craze. bell bottoms, white tux suits. 1976. not only does apple want you to buy an iphone it is creating a payment system to let you use your iphone to shop in physical stores. >> it's pretty interest iing. >> here is what it says. apple is looking at a system similar where you can actually go in with your phone, scan a bar code and pay for things and then just walk right out without having to interact with everyone. this patented application describes a system that would let people do this at other types of stores as well. you need to also be able to get coupons on your phone that would

tran translate to what you're buying in store this could be key in emerging markets where a lot of consumers don't have bank accounts or credit cards and apple needs to figure out a way to monetize those potential iphone users who wouldn't get hooked into their system through music. google has had experiments with wallet. amazon has its own credit system. this could be something we see from apple in the future. of course there is only so much insight you can glean from patent applications. sometimes they turn into a real product and sometimes they don't. this is certainly one that is in an area where apple needs to gain ground. >> where there is smoke, there is sometimes fire. this is proving to be one of the worst allergy seasons on record and it's going to be a long one.

we're complaining here. >> especially on the south eastern part of america. >> coupled with this fact we're in the midst of a worldwide allergy epidemic, the usa being no exception. >> there are a lot of things individuals can do. first of all, know your season.

know what allergy seasons bother you and this will vary based upon your location. know what your sensitivities are. you can be skin tested. this is very important because if you don't know your season you cannot prepare for the season. one should start taking medication two to three weeks prior to the on set of the season. this is very important because the medicines are quite effective in suppressing the manifestations that make people miserable such as itchy eyes, runny nose, sneezing ten, 15 times in a row. if you have cats or dogs in the house, keep them out of your bedroom. and there are other agencies which aggravate allergies such as cigarette smoking.

makes it more intense. >> very good practical advice. you read our mind or notes. we're going to talk about allergy medications right now. thank you so much for joining us. if you're sneezing 15 times a da, why don't we talk about making a bit of green around it. expected to top $14.7 billion by 2015. the estimated cost with the treatment of allergies alone, nearly $8 billions. who is making money on all of this? >> thank you for having me on. merk -- my wife takes zyrtec every single day. what they do is the model is a

pill a day. what merk and other research companies are doing is they are trying to go out there and get your body to actually go out. and the new drug merk is bringing forward is getting your body to trigger its own responses. by the end of a couple of years your body has fought off the allergy. >> at the end of the day, don't they want to keep selling to us every single year, year after year? if they create something like that that stops us from becoming allergic, won't it take away their market? >> you cannot live in the past. ten years ago, $3 billion a year for an allergy pill was one thing. but then they lost the patent. now you can go out there, treat it and believe it or not there is enough people in the united states alone for them to make a really healthy market. >> so merk looks good? >> yes.

so you're looking at two companies that realize this is the future of the market. >> thank you. >> up next, duncan and doughnuts. bob is sitting down. ♪

♪ ♪ ♪ ♪

a new development in some trades ahead of the 8:30 jobs report this morning. eamon javers has breaking news on this and he is in our washington bureau. what have we learned, eamon? >> mandy, i want to bring you three sort of totally head-spinning charts here from trading activity that we spotted before the jobs report came out at precisely 8:30 this morning. now, these three charts were provided to us by the folks at nanex llc, an analysis firm. the first one, bond futures this morning ahead of 8:30. what you see there, that red line going straight up and down the middle of that page, that's 8:30 on the time line. and you see those dotted lines

running down to the left, that's the move roughly about 500 milliseconds before 8:30, web see a sharp downward move there ahead of the news, and you see a circuit breaker put in place by the cme at that time, in order to halt trading, in order to allow markets a little breathing space. that's bond futures in the move before the tape at 8:30. move on to t-note futures and you see a similar move. this chart is on a different scale. we're still about a half a second, 500 milliseconds ahead of 8:30. the red line there on the right-hand side, that's your 8:30 line. but look at 8:29:59.519. what you see on the bottom is a big spike in volume and you can see the trading going all the way down as the price goes down ahead of the news at 5u8 30. now look at what happened in gold. this is a different scale as well, but gold futures moving down sharply, three bursts of trading starting at about

8:29:59.838. we're about 62 milliseconds now ahead of 8:30. we see three bursts of trading, three legs down in the price of gold, and then you see 8:30, that's the red line in the middle of that graph. these graphs provided to us by the folks at nanex. we don't know why this happened this morning. it could be a trader made a lucky bet, could be a data bleed. a lot of possible explanations out there. i don't want to imply anything nefarious, but interesting trading ahead of that jobs number this morning at 8:30. guys? >> eamon javers, thank you very much. >> you bet. new york is making a market in ceos. the largest gathering of global stock exchange ceos is underway in new york city. let's get to bob pisani with duncan niederauer. >> he's fresh off his fireside chat with ceos and other investors at the sandler o'neil global exchange conference. duncan, thanks very much for joining us. shareholders approved the ice merger this week, ice shareholders also approved it. what's the next step here in this merger? >> the next step for us, bob,

for both of us, is to wait to hear from the european commission and our college of regulators in europe. we should have a lot clearer picture of where we stand and what the path to a closing is by the end of june. so we expect to hear from both the anti-trust authorities and our local regulators in europe some time in late june. that will be the next step. >> and that was june 24th, as i recall, is that right? >> that's right. june 24th is simply the end of what's called the phase one review on the european side. so we will be given an answer as to whether there's no further work to do at that time, or whether they need time to review the deal by then. we'll be able to give people a much clearer picture as a path to closing at this time. >> is it fair to say this is a little less controversial than the deutsche deal. that deal was shut down by regulators on the fact that there may be too much of a derivative. >> there's a de minimis overlap.

there was no overlap in the u.s. that's why i think the approvals that we needed from the doj and others here were so, were received so quickly, because there's really no overlap between the two companies, and i think you can tell by the media coverage, it's certainly been a much less controversial deal, that's right. >> let me ask you about one of the hot topics at the conference, which is how to decrease technology problems. we've seen issues with facebook. are you confident that the exchanges and the s.e.c., everyone involved in, are doing everything they can to reduce technology glitches? we just saw eamon javers report on some, what appear to be a few minor issues on some individual securities before the open today. are you confident that the system is being monitored properly? >> look, i think everybody's doing their best in a world that is moving a lot faster. you probably noticed that in the debate we've been having with the regulators over what we call lrps on our exchange, which are really volatility buffers, we've been able to work successfully

with the s.e.c. staff, within the limit of up limit, down regime, to have in force at the beginning of the day and end o. day, which we think are the most prone to some of these individual stock issues that we've been seeing. so i think the dialogue's good. i think everyone's investing as much as they can, and moving as quickly as they can. having said that, you know, technology's never perfect. right, it's never infallible. >> i agree. limit up, limit down certainly appears to be working. duncan niederauer, thanks very much for joining us and we'll see you very soon. guys, back to you. >> thanks very much, bob. coming up next, it's homer simpson's favorite day of the year. [ shapiro ] at legalzoom, you can take care of virtually

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go paperless. combine policies. make automatic payments. and of course, talk to farmers. hi ♪ we are farmers bum - pa - dum, bum - bum - bum - bum♪ it's national doughnut day and here on "street signs," we are all about the fried dough. >> so to celebrate, we are tasting the dunkin' donuts' new glazed doughnut breakfast sandwich. let's have a go. >> and on that note, thanks for watching "street signs," everybody. have a great weekend. >> "closing bell" is next. hi, everybody. happy friday. we're into the final stretch for the week. with welcome to the "closing bell." i'm maria bartiromo at the new york stock exchange. back in rally mode we go! >> you've got your rally jacket on. it's all green today. as far as stocks go, let's