while dramatically reducing waiting time. [ telephone ringing ] now a waiting room is just a room. [ static warbles ] >> zr stocks set session highs. >> thanks for watching. "closing bell" is next. hi, everybody. we're enter the final stretch with a triple move on the upside. we're at the new york stock exchange. it could be our sixth-straight triple-digit move. >> when was the last time it happened? >> only happened six times. >> 2011 was the last time it happened. we're armed. we're ready to go. i'm bill griffeth. yes, a busy show. the last time the dow posted triple-digit moves in a row was in the fall 2011. this one, of course, comes the day before we have the latest announcement from the federal reserve on their intentions for

short-term interest rates. we have ben bernanke's news conference. i mean, everything happens tomorrow. and the market's pentagoning itself for a rally today. >> so i guess this is suggesting that tomorrow the fed will say, we're not going anywhere. we're going to keep the foot on the pedal. in terms of stimulus. >> i guess. >> is that what this is suggesting? we'll get answers with our guests. >> i don't -- i've stopped trying to read the market's mind lately. it doesn't make sense. >> the traders are unfazed by another big new his item today at a hearing in washington. it was revealed the government stopped a terrorist plot to attack the new york stock exchange. we have the full details coming up. the reaction here from the floor. >> plenty of reaction, trust me. tomorrow at this time we will know what is ben bernanke doing and what is he not doing? remember yesterday, how this market moved in just an hour, right here on this program, just over that report on what he might or might not do. well, imagine when we actually do know what he said and what his intentions are, we'll have a preview of what's online.

of course, that assumes after he speaks we know what he said. >> right. it has been transparent, anyway, in terms of what he's doing. the final stretch. the highs of the day as you can see from the intraday chart, the dow jones industrials, up 151 points, extending the big rally at 15,330. we're only 75 points away from an all-time high. >> 15,409. >> 15,409. 409. the all-time closing high. so we're once again inching back toward unchartered territory, if you will. the nasdaq looks like this. double-digit move on the nasdaq, 34 points higher. it, too, sitting at the high of the day as we approach the final hour. the s&p 500 as well, a double-digit move as well, 14 points the high, up about 15 on the s&p. so pretty close to it. >> i was going to say we're a good "financial times" article away from an all-time high on the dow. >> the stocks move today, possibly the sixth consecutive triple-digit move ahead for the dow, ahead of tomorrow's fed

meeting, something we'll talk about in our "closing bell exchange." >> we have rob wiener, quincy crosby, and our own rick santelli in the bond pit. thanks, everybody, for joining us. >> welcome. >> let me kick off with you, if you look at the triple-digit moves, we know we're in unchartered territory and once again approaching the highs. the volume is not so great. what does that tell you? >> it tells you the commitment isn't necessarily there. it tells you that there's probably on the other side of it options that are putting in a floor in case ben bernanke disappoints. may 22nd is not that long ago. he was very clear in his answer to the congressman, what has changed since may 22nd? employment data have actually gotten better. so he may try to go both ways. he may try to assuage the market. but at the end of the day, the tapering is going to come, and when it does come, the market has to accept that the road to

normalization is going to have many detours. >> is stronger taper talk tomorrow good or bad for the stock market? >> listen, i think it will end up being -- i think it will end up being negative for the stock market. what happens is every time they talk about it, you can feel the market get nervous. it doesn't want it. it's telling you, i don't think it's ready yet. that's why tomorrow, i think, as transparent as he's been, he's going to play it both ways, just like he did in may. he's going to cover all his bases. he's going to say, you know, we're keeping our foot to the pedal. but in case we decide things have changed, we can change our mind along the way. that's why it's going to add to the confusion. >> go ahead. >> i have to tell you, i don't think it's going to matter much what he says. we all pretty much know. i watched this show incessantly, and the truth is, everybody knows that tapering isn't cutting back on the qe. it's not going to matter much. the markets will fill out, because it's the on game in town. you can't buy bonds. everybody's scared of foreign markets. so the floor in the market is

really there is nowhere else to go. >> does that mean you want to put money into this market here, into this rally? >> yeah, you can find lots of places to put it in. i brought some stocks today, really the rising dividend story, the emerging market-growth story. there are plenty of places to put money that will be okay. maybe not for a week, but certainly for a year or two or three. you're looking great, i think. >> do you see that kind of conviction on the floor, kenny? >> no, i don't see that yet. i'm not disagreeing -- long term, i agree. i don't see the conviction yet here on the floor. it's very, very -- you said it at the very beginning. volume is very low. there's not any commitment certainly coming from the big asset managers. the trading and activity is coming from the day traders and high-frequency names in and out. >> rick santelli, let me add a sidebar, an intriguing one, that being the president's interview where he strongly hinted without actually saying it he doesn't intend to reappoint ben bernanke when his term is up in january. >> that was interesting. >> how does that affect this

whole conversation, do you think, as well? >> you know, in a way, nobody's really talked about in the media, but i hear it a lot on this trading floor. people on the floor are saying, well, maybe that will change how they trade the market. now, remember, they don't care truly about which way the programs go. their job is to try to go into these pits and make some money. and they believe, well, if this was the ceo of fortune 500 company, would the ceo change the strategic plan before having the successor yet unnamed? would they straddle a new successor with some last-minute changes? so it may affect their strategy as to the longevity of the loose policy, the accommodation. and they lump all accommodation in one bucket. >> one trader was opining to me today here on the floor earlier, saying that maybe bernanke will be the one to do a little taper-testing, if you will. let him be the pinata so his

successor doesn't have to do all of the bad work, you know, the work of removing the punch bowl or stopping the -- >> yeah, that's exactly the type of conversations going on on this trading floor. and i find that very unique. it's almost like the second derivative trying to interpret programs where the exit being talked about probably hasn't been detailed out or fleshed out by ben bernanke and committee, because of so many unknowns. >> just a sidebar. i thought it was really interesting in that interview with bernanke, as well, bill, what do you think about the idea he compared the fed with the fbi? basically saying that -- >> bob muller had been in the office for a long time -- >> he stayed longer than he wanted. bernanke is staying longer than he wanted. >> exactly. >> the federal reserve is supposed to be independent. so i just -- that was very revealing -- >> i agree. >> -- you want to jump in here? >> i think ben bernanke has made it clear that most likely he wants to leave. and by talking about this more, it makes you think that someone

internal is going to get that job to make the transition as smooth as possible. >> the talk is it will be janet yellen, the current vice chair. is she different from -- >> she's more dovish. >> she's more dovish. what's been interesting is the conversation around where everyone has been talking about this issue, about tapering. everyone except ben bernanke himself, because they've been testing the market to see how investors and what the market actually thinks of an eventual taper, which we all know will happen. >> if they suggest the tapering could happen by the end of 2014, do we see a big sell-off -- >> 2014 or 2013? >> 2013. i think you see some weakness. like the other gentleman said, where else will you go? there is a floor in u.s. equities. i think the future is bright for u.s. equities. >> all right. >> yeah, i have an answer -- i have an answer for that. >> go ahead, ron. >> i think you live in the solid triple space of bond, you latter the bonds out, average of four, five year, you'll skip over this whole thing without taking on the risk. >> have you seen -- $37 billion

came out of bond fund and etf funds in june alone. >> yeah, great, maria. that's exactly the point. not bond funds. bonds. bond funds don't mature. bonds mature. we're getting our portfolios maybe 4.25%, 4.50%. we're going to sit back and agree that's a good enough return during this turmoil. let it go. >> all right. thank you, all. >> as always, something to talk about, isn't there? >> thank you so much, everybody. we want to look at the market with the dow up 139 points. that's off of the best levels of the session. as you can see, we saw seming in the last 10 minutes or so. the dow 30 companies are trading higher and technology is among the winners today. let's get to josh lipton and see what's driving the rally. over to you, josh. >> reporter: maria, some of the names on our radar today, in the s&p, big gainers included floor systems and raymond james upgraded it to a strong buy, saying unit volume will double by 2015. on the downside in the s&p, newmont mining, protesters

pushing through to sdop a newmont mine. analysts i spoke with, saying this isn't new news. newmont had already said it wouldn't move forward without local buy-ins, but still lower. hormel, another lagger, cut the full-year profit outlook, talking about higher input costs and weaker sales in refrigerated foods. gainers include american express, intel, and united health. and on the nasdaq, facebook moving higher ahead of the product announcement on thursday. also, amazon today announcing the amazon birthday gift, which allows customers to send gift cards with birthday messages on facebook. that stock up 1.3% right now. bill, back to you. >> all right. josh, thank you. we'll no doubt be checking back with you, my friend. as we head toward the close, 50 minutes left in the trading seg, the dow up 145 off the highs of the session. a rally before fed day. not unheard of. but unusual. >> yeah. >> and it could be the sixth consecutive 100-point move for

the dow. >> and where is the money coming from? what are the ultra wealthy doing with their money? a new report out with surprising details. see if that's what you would be doing if you had that money. we'll look and report it next. and then, later, a thwarted terror plot to bomb the new york stock exchange. where we are sitting right now. we are all aware of that. coming up, we'll get more details on that little nugget revealed during that hearing in washington today. plus, reaction from people here on the floor. including a couple sitting right here. >> and then, of course, all focus on tomorrow's federal reserve announcement. even a hint of a potential fed move rocks this market. remember yesterday with the ft article? after the bell, we find out what the experts will happen tomorrow, how the market may react and how to position yourself for it. that and more coming up on "closing bell." stay with us. [ male announcer ] my client gloria has a lot going on in her life. wife, mother, marathoner. but one day it's just gonna be james and her. so as their financial advisor, i'm helping them look at their complete financial picture --

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certainly a strong stock market helps the wealthy become, well, wealthier. robert frank, looking at a new report from rbc on how the world's wealthier investors are putting their money to work in this environment right now. robert? >> reporter: thank you, bill. rising stocks did help create 1 million new millionaires last year, setting an all-time record. the report says there are now

12 million millionaires around the world, and their for tunes grew 10% to a record $46 trillion. that, by the way, is more than the combined gdps of europe, u.s., china, and japan, and much of that growth was in the united states. not in emerging markets. the u.s. with 3.4 million millionaires, more than brazil, russia, korea combined, china adding 83 millionaires last year. wealthy investors do remain cautious. u.s. millionaires had 21% of investments in cash. a third of them said their goal is wealth preservation rather than wealth growth. japan was the most cautious. millionaires there keeping half of their investments in cash. american millionaires also lead the world in stock holdings with 37% of their money in stocks. maria? >> all right, robert, stay with us, please. we want to get more on that report from one of the folks who put that report together, janet engels. welcome to the program. >> a pleasure. >> tell us about the surprising

findings of this report. when you say ultrawealthy, what are we talking about in terms of portfolio? >> high net worth would be considered 1 million above in investable assets outside of real estate. ultra high net worth is 30 million and above. so what were the surprising findings? we went through how to size the high net worth market, and that increased quite nicely in 2012. the surprising factors were really the preferences and behaviors of that segment of the population. so there are a couple of different things. wealth preservation. it remained paramount for this group with 30% saying that wealth preservation and holding on to cash was very important. >> is that typical for them? >> that is typical for them. >> it's been typical for seven years. >> yes. >> we spoke with credit suisse, morgan stanley, they all say the same thing, 30% of clients sitting on cash. this is extraordinary. >> in this particular segment, think about their businesses. these are people that invest in their businesses, quite a bit of the risk they take on is in the

business that they run. and so, therefore, holding higher levels of cash is sort of normal for them. but it is -- it is a high level. >> what was the second surprise for you? >> the second surprise for us is that confidence is improving. so on a global basis, 75% of the high net worth individuals surveyed said that they are confident that they will increase their wealth in the near term, higher level for the united states, 83%. that would be surprise number two. surprise number three -- that was really supported by their growing confidence in their wealth manager and their firms. so on a global basis, 61% of people said that they were confident in their manager and their firm, more so than the financial marks and the regulators. in the united states, the levels were much higher. 70% for both. lower levels for regulators. >> robert, does it surprise you that, you know, we've got janet said confidence is back, they think they'll have more money. and they're comfortable with their adviser. and yet, they're still sitting on 30% of cash.

>> yeah, well, they're confident about their own situation, but not so much about the economy, the broader economy, and their own country or the world. my question for janet is, the surprising thing to me about this report is that north america and the developed countries are actually back on top when it comes to wealth creation. if you look at china, you look at brazil, russia, the developing, emerging markets, which are supposed to be the new thing when it came to the world of wealth, and they're really secondary now. did we all get too bullish when it came to wealth creation in emerging markets? >> i think we're looking at short-term patterns here. the belief is when we look at asia-pacific, some of the developing economies, they will probably be back on top in the near term. particularly asia-pacific, which we think will have the fastest growth rate to 2015 where we think world wealth will be -- find net worth over 55 trillion. think about the volatility in the marks. in 2010, 2011, and think about what the u.s. markets did and, quite frankly, u.s. real estate. so it's really not a surprise.

we flip-flopped a little bit in 2012 with north america coming back on top. >> those who argue for tax cuts for the wealthy say those -- that they should be allowed to have those tax cuts, because this is where the jobs are created. they are the job creators in this economy. do you find that to be the case? are they the kind of risk taker where they're using some of that wealth to create jobs? >> well, we would say where you're seeing the most job creation in the united states, quite frankly, has always been small business owners, and small business owners are -- tend to be in this category, putting a lot of risk in their business and high net worth individuals. so these individuals can drive overall employment in the u.s. >> aside from stocks, where else are they putting their money? is it real estate? what other categories? >> real estate is the second-largest category in terms of where people are putting their wealth overall. that would be the second-largest category. >> what else? >> when you see it -- you see some consumables, as well. what you're seeing is jewelry watch comes in. art is not as high up on the -- on the post anymore.

>> really? >> interesting. >> it's still significant. >> why is that? >> i'm not sure there's a specific reason for that. it's not as significant as it used to be. >> but the art market's been pretty hot. >> it's been pretty hot. >> although much of that wealth has been coming from overseas, asia, russia. a lot of the investors that are buying at auction right now coming from other countries. >> right. still a contributing factor, but not in the top three of the contributing factors and where people are putting their money. >> would you expect this group to believe in the market long term, that they will continue plowing money into stocks? >> we think that there's an opportunity. look, they have been conservatively inest vested. what we're think is happening is it takes time to restore trust and confidence in the markets overall. in the regulatory environment. and for investors, particularly in this group. so we think they can drive investments for the longer term. >> janet, good stuff. >> great stuff. >> thank you so much. >> pleasure. >> appreciate it. >> robert, see you as well. >> thanks, guys. 40 minutes to go, and those who are long in the ultra wealth category are making money right now. the dow is up 144 points as we

head toward the close. >> and then the activist investor. today, dan raising his stake in sony as he tries to convince the company to spin-off its entertainment business. up next, find out if you should follow his lead. and, also, a company is letting retail investors use the same algorithm trading methods used by wall street firms. what do you think? sign up for that? become an algo? >> i don't know. >> we'll look at that coming up later on "closing bell." [ male announcer ] with free package pickup

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welcome back. two activist investors making headlines today. carl icahn and dan loeb, our scott wapner breaking both stories. update us on icahn and dell. >> if i can get off the phone. >> you ready to break something else? >> maybe. >> okay. >> let's start with this. carl icahn is stepping up his efforts in his bid for dell. he sent a letter directly to dell shareholders proposing a 1.1 bhl shares at $14 a share. one of the key parts answered a question about the financing with mr. icahn saying he had obtained a commitment for $1.6 billion from a major bank. i can report according to a

source that bank is jeffries. i did speak with him this afternoon and he told me the following. despite dell's own dire projections, the company's own consultant, bcg, which they neglected to mention in their last report, stated that in the most conservative case that dell would make operating income of $3.38 billion in calendar year 2014. icahn went on to say, after the tender offer, if everybody tenders, there will be 670 million shares left, which will earn pretax $3.72 a share. don't you think that stock will be worth more than that? that's what mr. icahn had to say. oh, by the way, carl will be one of the big keynote speakers at our delivering alpha event on july 17th here in new york city. you can get more information. i'm looking forward to our conversation there. as for the other big activist story. dan loeb reporting he's upped his stake in sony to 70 million

shares, or nearly 7% of that company. loeb revealing the details in a letter i obtained last night, the second letter he's now written to sony's ceo urging the company to separate its entertainment and electronics unit. loeb writing the following. we remain convinced that the proposed transaction will strengthen the company as a whole. the newly listed entity will thrive with a governance structure that focuses on increasing profitability, competitiveness and accountability. we expect that this transaction will strengthen rather than diminish sony's ability to exploit meaningful synergies between the entertainment and electronics divisions, a goal we share. a third point, also reiterating its offer to serve on the board of directors. loeb writing that kazuo hirai should remain. it's been a busy 24 hours. the activists never sleep. and as a result, neither do i. >> when are you expecting a dell resolution? >> i don't know.

now, we'll see what happens. you know, the shareholders meeting is, i think, in a month or so. so this is going to probably play out. now maybe we'll get a response to what mr. icahn is saying and maybe go from there. >> maybe carl will be on to another deal by the time july 17th comes around. >> you know what, you joke, but the way he's acted this year -- >> i'm not joking. >> -- he probably will be. he's been so incredibly active with a number of different stocks. not just dell. not just herb life. but there's netflix, let's not forget he made a billion dollars in a short period of time, as that stock has gone up. the list is long. bill, distinguished, to which mr. icahn has been involved this year. >> great as always. let's talk more about sony and the dan loeb story, up about 3% today. is now a time to follow dan loeb and buy that stock? let's talk numbers on sony today, on the technical side. it's rich ross, global technical strategist, and on the fundamental, steve cortese, the

founder of tjm. rich, walk us through. do you like the chart? >> i think this is exactly the time to follow dan loeb here. this is the best of both worlds. it's a compelling technical setup with an activist hedge fund kicker. it doesn't get any better than this. when we pull up the chart, you can see we come hot out of the gate. we're up 100% five months into the year. we have a textbook 17% correction along with the bear market decline in the nikkei, and we hold the 50-day moving average and the low end of that well-defined trend channel on the way up. that creates your compelling buying opportunity. we think you take out that resistance, triple-top resistance at 22.50. on our way to $27 a share. in the short term, we like the stock right here, we're buyers. >> what about you, steve? you like dan loeb? do you like kazuo hirai, or will you throw in the towel on all of this? >> i like dan loeb a lot, but i don't like this move. i think he is miscalculating the likelihood the japanese will

respond to shareholder activism. the history of shareholder activism with japanese companies is a very sad one, going all the way back to the 1980s and t. boone pickens. american investors seem to want to try this often and seldom succeed. it's one of the reasons japan is in the quagmire it's been in for a quarter century. its companies are not innovative and not responsive and flexible. moreover, i would point out it's really not about -- excuse me, not about sony individually anyway. this is really a macro japan story. if you look at a chart of the dollar-yen combined with sony, you can see that for most of this year it was the exact same trade. so, in other words, the dollar-yen rallied, weakening the yen, most japanese companies, including sony, did well. the problem with that, over the last couple of weeks, the dollar-yen has turned around violently and heading lower. and as the yen strengthens, that's a huge problem for sony, who gets 80% of its revenues internationally. >> i don't see that as a problem at all. in fact, i'm bullish on the dollar here. i think the yen will weaken. of course, strengthening on the

charts, but weaken in reality. we can test that 103 again. that's a stronger dollar, weaker yen. i like tnikkei to reassert itsef and sony outperforming the market, and continue to outperform here. and on the corporate side, you're seeing a more receptive ton this time around -- in terms of the corporate receptivity to this move. i like what's going on here. >> all right. rich, gotta go guys. >> okay. >> i'll let you discuss it over lunch or something. continue the conversation. see you later. >> thank you. we have a market that is on fire once again today. up 158 points once again, near the highs of the day on the dow. 15,338. the all-time closing high on the dow 15,409. not so far away. >> just today, the fbi is claiming that that controversial surveillance program we've all been talking about foiled a plot to bomb the new york stock exchange where we're seating right here. up next, we'll ask some traders how they feel knowing the exchange had a bull's-eye on it.

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welcome back. big market day today. triple-digit move once again, and stunning news coming from the nation's capital today. the fbi claiming that the government's controversial surveillance program actually stopped a plot to bomb the new york stock exchange. ayman has the information. >> reporter: that information came from sean joyce, an fbi official testifying on capitol hill, saying the information from the nsa had led to a thwarted attempt to bomb the new york stock exchange. we're learning a little more detail about what that plot actually consisted of becaused on some sentencing documents that the government filed in a

court case. if you put this on the screen, you get a summary of what he allegedly did, according to the u.s. government, being in contact with a mysterious yemeni figure named the doctor. they said the doctor instructed him to conduct with the purpose of gathering information for a future terrorist attack. he conducted this surveillance and subsequently sent a one-page report to the doctor. this document also goes on to say, however, the one-page surveillance report simply reported that the new york stock exchange is surrounded by security and that a person attempting to attack it might have to approach on foot and that the report may not have been sufficient to actually move ahead and plan a full -- full-blown attack on the new york stock exchange. now, also, i should say the fbi official here, sean joyce, said that people had been tried and convicted in this case. it turns out that that's not actually true.

there are two cases connected to this situation, and in both of those cases, the people involved pled guilty, and are awaiting sentencing. we're told by a fbi spokesman that joyce misspoke this morning when he referred to a jury as having been involved here. so it is an important nuance there, maria. >> all right. thank you so much. how does this news impact the people here at the new york stock exchange every day, including bill and myself? >> yeah. joining us now, veterans of the floor, matt and ben, and our own bob pisani. this panel, everybody, i'm the shortest tenured. i've been here three years. you know, we all live with this knowledge in the back of our minds every single day. especially in you were here on that certain day in 2001, right, ben? >> and i was. and you guys were. >> i was here in 2001. i was here in ' 3, the -- '93 the original bombing. >> yeah. >> and the fact that this is

coming to light is not really a surprise, because we've been a target for a long time. we're going to continue to be a target. this is not going to stop it. >> does this get you nervous to come to work every day, matt? i mean, what did you think when you saw this news? >> it doesn't make me nervous. i like to consider this a patriotic rally today. we're taking this and we're saying, you know what, throw it at us. we got it. i like to think our security is good enough to handle it. >> that is interesting. >> we both were here on 9/11. a scary day. >> emotional day, scarred day. the thing i'm most proud of, everybody came to work that monday. we were closed tuesday, wednesday, thursday, friday. everybody came to work monday morning. >> that was a proud day. >> of course, senator clinton came. >> with the fire department. >> and nobody that i know of here called in and said, we can't handle it, although it would have been understandable. people came to work every day, and continue to come to work and had continued to come to work every single day. >> the fact that we have rallied, you're calling it

patriotic. is there a sense of complacency? we have gone this long -- knock wood -- without another attack. >> i don't think so. we walk through security every day. it's harder to get in here than -- >> even on the block, right? >> so we're familiar with it. for me, is it going to be a slightly different spin, i think the security we have in place at the new york stock exchange is world class. you have brian who runs the show here, came out of the secret service. we know that the security that's involved, surrounding. i'll put my trust in mr. gimlet and kelly before i turn over my privileges as a citizen of the united states to the nsa. >> we have guests on the program who are members of the board of the new york stock exchange who complain loudly every time they have to come down here for an interview, because they still have to go through the -- all of the bells and whistles and hoops that we have to go through every single day. i've heard him say, i'm a board member here. why do i have to do all -- you

have to do -- >> we like to joke it's easier to get into the white house than it is to get into the new york stock exchange. >> i don't know about that either, right? >> the security procedures -- >> you say that's a patriotic rally. that's not really behind the rally. what's behind the rally? >> but we'll take that sentiment. >> the fed is -- this is ben bernanke and obama -- and maybe mr. bernanke's swan song putting into effect the final phase of program that he started with t.a.r.p. and the quantitative easing and all that we've seen, and the idea that tapering may actually come out somewhere before he signs off. i think that's more of what we're seeing right now. >> what do you think, matt? >> obviously, the fed's been behind this whole rally. anytime we have an inkling of them easing, the quantitative selling sells off. we are expecting a lot out of the fed. can they disappoint? absolutely. i'm always skeptical, as you know. >> we were reminded during the break by another trader who came over and said last year at this time, the four days leading up to the june meeting, the market

rallied, like, 300 points. >> in four days. >> for four days, and after the meet, they all gave it back. >> i think mr. bernanke will be very careful tomorrow. he has a 50-basis point rise in yields in the 10-year. i think he's happy with that. pricked a few asset bubbles in japan. but now has to be careful. he's going to be very careful. by the way, we're 90 points from a historic closing high on the dow, believe it or not. somewhere right around 90 points away. >> yeah, we have a big week. we have the lottery balances at the end of the week. you'll start seeing some of the money managers using the rallies to get into the positions for this -- toward the end of the week for the russell rebalances. >> you think the end of day looks like it's sustainable here? >> yeah, absolutely. i don't think there's any reason to give up today, with all of the headlines out of brazil and, you know, the headlines of the nsa, if it's not going to fall from that, i don't know why it would fall now. >> on an authentic move by the

fed, other than the verbal tapering we're seeing now, an authentic move, i would not be surprised to see the major indices to sell off, but that would be a buying opportunity in the long run. >> all right. buy on the dip. thank you, guys. i appreciate it. about 20 minutes left in the trading session and the dow is up 143 points. >> we'll check in on this story next. a kmpg partner pled guilty, and speaking out for the first time to our jane welsh today. >> this ended up getting -- starting as something small and ended up getting pulled into something a little bit bigger, which i obviously regret -- regret every day of my life. >> well, he said a lot more than that, and you'll hear it next. also, will ben bernanke take away all of the gains from today by what he says tomorrow? that's what we're wondering here. we'll look into that when we come back in a moment. also ahead, find out which sectors make the biggest moves when interest rates go up.

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insider trading scandal of recent days is speaking out for the first time, and our jane wells spoke exclusively to him. jane? >> reporter: bill, scott london admits he threw away a 30-year career because, he says, he helped a friend in need, tipping off brian shaw ahead of earnings reports. shaw made over $1 million on the illegal trades while london eventually says he accepted kickbacks worth about 70 grand. >> i never once asked for any money. never was -- you know -- >> you didn't turn it down. >> that's correct. like i said, i regret everything i did, and i take full responsibility, full accountability for what i did, and i want to make that clear. you know, this was not about making money or -- this is about initially helping out a friend. it was -- you know, whatever, for the wrong reasons. and like i said, i regret it till the day i die. >> reporter: how did you find out when he -- that he had made over $1 million? and what was your reaction? >> i was driving down to the courthouse the last time i was

in court. i was looking at my iphone and saw one of those "wall street journal" online blushes and saw mr. shaw had made over $1 million. and i nearly threw up in the car, just my -- your heart just sinks thinking, that's impossible. and he was in the car next to me, and i told him, i said, hare ron, you're not going to believe this. and because, you know, i was led to believe that the number was far less, closer to, like, around $200,000 based on his comes and his representations. >> reporter: and so, now, what do you do? do you ever work again? assuming you stay out of prison. who knows? >> i'm going to work. i'm only 50. my kids might not think this, but it's not old. and i still plan to work. i have to support my family. i have two kids in college. and i'll wait on tables. you know, i'll do whatever it takes. >> reporter: well, london faces 20 years once he pleads guilty to security fraud, when he

officially does that probably in the next few weeks. though given his cooperation to get full 20 years would be highly unlikely. still, guys, expect prosecutors to push for at least some prison time. back to you. >> ah. that is -- >> great, great job, jane. he is contrite. it's a tragedy. >> no answers. so we're in the final stretch of trading for what has been another magical day for the bulls. the dow jones industrials average up 140 points with just about 10 minutes before the bell. >> the day before the fed meeting. that's what kill -- i don't get -- >> is it the calm before the storm? >> probably. and we'll be here for that tomorrow. we'll also come back here with the one manager who says that this rally is heading even higher and investors should jump on the bandwagon right now. that's coming up next. and then, mergers and acquisitions expected to increase 40% in the second half of the yearment but will higher rates dampen the urge to merge? we'll talk to an adviser firm ahead of the "closing bell." [ male announcer ] this is betsy.

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less than ten minutes to go. the dow has been losing altitude. we got word that the bias is slightly to the downside here as we head toward the close, the dow up 131 -- now 129 points. we were up 157 at the peak today. >> could we see a reversal of

fortune depending on what bernanke and company say tomorrow. joining me is matt schreiber and our own jeff cox. good to see you, gentlemen. let me kick it off with you. you think we'll see a summer pullback. why? >> i think we could see a summer pullback. we have soft gdp. weakening fundamentals. top-line revenues decreasing. earnings have been good, but we might not see the same number pripted again this quarter. >> that's nothing new, right? >> nothing new really. you know, stocks could cool off, take a dip here this summer. we haven't had a 10% pullback this year. that happens typically once a year. we haven't had a 15-year or 20% pullback which happens 15% every two years and every three years a 20% pullback, and we haven't seen one of those. >> that's for sure. jeff, we can't believe there's not a lot more chatter about the president's strong signal that he won't reappoint ben bernanke when his term is up in january. how much of a game-changer is that when you consider the monetary policy, how crucial it will be over the next nine months here? >> i think it only becomes a

game-changer, bill, if there's some indication they would go in a vastly different direction. i think the expectation is that we go with janet yellen or somebody else who will kind of continue the current policies. i think, you know, you watch the market now, and there's not a lot of concern, that the trade is trying to front-run the decision tomorrow. there's no reason for the rally the past two days. it's trying to gain the fed. >> is there really no reason, or is there no other game in town? maybe that's the reason. i can't find yield anywhere, except if i go to dividend-paying companies. right? so that's the reason? >> there's really nothing else traders have been going on for a long time. when you look at it, this would be -- in my mind, it's time to take profits. we've gone up on really on nothing -- >> but it's not on nothing. it's on low rates and no alternatives and corporate profits which are doing well. >> -- earnings that aren't going anywhere. how far can you go on just printing money and pumping up liquidity. >> the only game in town argument, is that the reason why we haven't had the wreck correc

so far? >> you know, investors still think the markets are going up here, when, in fact, we topped out on may 21st. markets down a few percent since then. we think it's still a great time to surf the market, look for stocks that are a great value, that pay a dividend, and still have good fundamentals. >> give me one idea. >> well, susquehanna bank is one we like. it has great revenue and earnings. 2.7% is the dividend yield. digital realty, corporations, also got a 5.1% dividend yield. gotten beaten down recently on the reits story. but still, it's the world's largest data center. they have some new technology coming out. we think that's a a strong pick as well. >> very quickly. what do you think happens tomorrow? >> i think that we see some language that starts to indicate the taper. i don't think we'll see a taper actual -- i don't think the decision will be made, but i think you will see the language go in that direction. >> if unemployment is 7.6% and they say the target is 6.5%, why am i supposed to believe that the tapering talk is going to

talk now -- start now when he just already told us -- >> big wild card here. big wild card here. more concern within the fed about blowing up an asset bubble. i think that's where you're going to see -- they're not going to come out and say that right away, but i think there's a lot of internal concern about that, that we've gone too far, too fast. >> all right. maybe he'll use the green speak, irrational exuberance. >> irrational exuberance. revisit that one. we'll come back for the closing countdown for this tuesday. if you want privacy while surfing the web, duckduckgo is your solution. >> i had no idea about this. >> the search engine promises it does not store your searches and it's seeing a big surge in business as a result. >> i haven't played duck duck go since fifth grade. >> check out my google plus hangout tonight with the founder of rent the runway. i'll be talking about how technology is changing the fashion industry. that's on google plus tonight. join me for that google plus hangout. all business purchases.

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which would be fine if bob were a vampire. but he's not. ♪ he's an architect with two kids and a mortgage. luckily, he found someone who gave him a fresh perspective on his portfolio. and with some planning and effort, hopefully bob can retire at a more appropriate age. it's not rocket science. it's just common sense. from td ameritrade. two and a half minutes left. a reminder. a trader told us, what, a half hour, 45 minutes ago, reminding us that last year at this time -- >> oh, right. >> -- surrounding the june meetings, we had four consecutive up days leading into the meeting, where the dow gained, what, 300 points. >> in four days, yeah. >> and then after the meeting -- >> gave it all back. >> it did. >> in another four days. >> what have we done here

leading up to this meeting? we've had six consecutive 100-point moves on the dow. this is five of those six days. three down days, three up days. today, we're following on yesterday's big move. we have a gain of 135 points right now. we're about, what, a hundred -- a little less than 100 points away from an all-time high. >> all i can say is $37 billion. okay? that is, for me, the big watch word. $37 billion flowed out of bond funds and etf bond funds just in this month, june, alone. where is that money going to go? at some point, that money needs to find a home. they're getting their -- they're fi finding, wow, i thought this was a safe investment. i lost money in bonds. i think it begins what could be the great rotation. >> terry, you've been looking to fade that market. where does the money go? >> i agree with maria. that's what creates the rallies. i think what the market is doing is it's creating a little trading range. 500, 600 points.

the market is taking a break of its own. you see the volatility, the moves, it's still not really going up, not really going down, but it is catching its breath. long investors sort of putting money to work, and maybe without chasing the dow up to a higher and higher level. but yet, the trend is still intact and certainly the bull market rages on, and we will see the money continue on forever. >> i'm going to run for the next hour of the show. hey, you want privacy? how about duckduckgo, right? >> duckduckgo. a new favorite search engine. what do you expect the fed to say tomorrow? >> i think the fed is basically going to say that there's not enough evidence for them to make a decision one way or another, but i think they'll be inclined to take the foot off the gas a little bit. the word tapering has been used a lot. i think that's intelligent. common sense reveals where the economy is growing, albeit not exactly the way they want, but by the same token, not in trouble anymore. the chances of recession are much lower than they were, six

months even, and i would look for the fed to have common sense to start the play here. >> all right, terry, thanks as always. that's it for the first hour of the "closing bell," where we're having our sixth consecutive 100-point move for the dow jones industrials. a gain of about 135 points today. here's maria and the ceo of duckduckgo. 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 on the floor of the new york stock exchange. lots of applause at the close. a big rally on wall street ahead of tomorrow's all-important federal reserve announcement, and the dow jones industrials closing out a sixth straight date with 100-point move. how about that? look at how we're settling out on the street today. up for a tuesday. the down industrials up 139 points at 15,318. volume really no great shakes once again. we're not seeing heavy volume numbers. we'll talk to some traders about that momentarily.