don't miss tomorrow "squawk on the street." there's always a bull market somewhere. always trying to find jim crame you tomorrow. good evening. an historic day on wall street as the stock market enters unchartered territory. hi, everybody. welcome to this special coverage of market at all-time highs, tonight. i'm maria bartiromo. >> and i'm bill griffeth. nasdaq hitting a high of 15 years. stocks are now red hot in july. the dow is up 3.7% just this month. the s&p is up more than 4% and

the nasdaq has them all beaten, up more than 5%. >> let's get with bob pisani. bob? >> it's very popular for people to say mr. bernanke didn't say anything new. but you know what, a lot of people seem to think there was something new here, the dow went up almost 200 points. highly accommodated? yes, it's a psychological effect but it's a big one. tapering could still occur. the fed is going to keep interest rates near zero for a long, long time. emerging markets, cyclical, intrastate move to the upside. steady all day and a nice move up late in the day. a lot of that move was through the technology stocks. take a look at the big leaders, microsoft with that organization, all of these

stocks moving to the upside. big day for cyclicals. commodity stocks. they've had a terrible second quarter overall. we've seen big moves in gold, copper, and silver. housing-related stocking, interest rate groups did good as well. mr. bernanke calmed fears of raising interest rates. finally, i want to point out, emerging markets have been the biggest debacle. turkey, peru, thailand, these are exchange-traded funds down 20% in the second quarter. this is their best day in at least several months. bill and maria, back to you. >> can we keep rallying for much longer? and are we in danger of a long-anticipated correction? >> joining us tonight, heather hughes, kenny picari and stan

stova stovall. someone asked me, why is the market at an all-time high right now. what is your answer to that question? >> it's sort of as the fed turns. you dumped them, let it go. what i mean, the market tapered and now, as we heard, he brought back highly accommodate tif. it's almost, why would we withdraw? we know that we'll have to withdraw or wind down the $3.4 trillion balance sheet. so the first step will be tapering. why not let markets go ahead and price that in? >> so far, they have basically gone from upset over the federal reserve beginning the wind down to -- >> euphoria. >> -- not believing it that fed is going to wind back in september. my question for you, sam, is about earnings. here we are on the doorstep of

real busyness in terms of the second-quarter reports. what are you expecting in terms of second-quarter profits? >> s&p capital consensus looking for a 3% year over year increase in the second quarter. certainly not as good as i think a lot of investors would hope. but typically what we find is the difference between the estimated number at the beginning of the reporting period and the actual number is about 4 percentage points. so instead of getting 3%, maybe we get something closer to 7%, which would imply that this earnings improvement would continue. >> kenny, i'm going to ask you the same question. we were supposed to have a 10% correction some time before we took off. we had a 5% pullback in the month in june. now we're off to the races. what happened? >> we're off to the races because look what happened. he came out and said he pushed any thought of a september tapering way back. that whole conversation, everyone got together and said,

absolutely, september is when it's going to happen. the markets started to price and the market threw a temper tantrum because it realizes, without all of the stimulus, we shouldn't be trading at the levels that we're trading. we're in for a 3% earnings growth. we are seeing them beat the number on the bottom line. why are we at all-time highs celebrating when in fact these companies are not going to blow the roof off of bus earnings. so it's confusing. and so really ben bernanke came out yesterday and said, look, here's what we're going to do. not only is it not going to happen in september, we're going to keep the foot on the gas until we feel it's strong enough to goes. now he took the whole september thing right out of the book. >> do you think that's true, though, that he took september right out of the books? let's parse through what bernanke said. one of the things that i think is incredibly interesting is the current unemployment rate

underestimates the jobs report. >> does anybody think it's as good as it looks on the face of it? when you look at it, it's a lot of part-time jobs and low-paying jobs. it's not the healthy job market that we really want to see. it's good. i'm not saying it's horrible. but -- >> what matters more? the fed or the earnings right now? >> earnings, if anything, i don't think would boost the markets, as we stated. seblthd half of the year, earnings and guidance is going to have to be revised down. the market rallied on the fed being more accommodate tif. >> do you agree? >> i think we're talking about stuff today but the market is being looking at things six months down the road. prices lead fundamentals and right now prices are telling us that they expect second half gdp to be up in the 3.5% range that we start to see earnings improvement. >> and the earnings are reflecting that, sam, for the fourth quarter we're getting earnings expectations of 12%

increase. i don't get this idea that the only reason the stock market is up is because the fed is behind it. >> look what happened to the market -- >> we have historic -- >> look what happened after the fed news conference when bernanke made all of those comments, he was specific about when they were going to start tapering and when they were going to finish the tapering and it scared the heck out of the markets. >> of course it's about the fed. >> it's absolutely about the fed. every time there's any indication that the fed is going to walk away, the market rolls right over. >> yeah. >> and then they said, everybody out to go across the country. then they said, you've misunderstood, we're not going anywhere. everything's good. and then boom. >> what is working now? we've got oil prices above $106 a barrel. that's a negative. i put that in the negative column. are oil stocks reacting to that? where is the strength in stock and do you want to own those stocks right now? you and then i want to hear from bob.

>> i think oil is going to be a big problem. i think you want to be in investor land. i think you want to be in some of the banksing names and certainly in technology. sam is right, it's a discounting mechanism. it's looking out six months but i think that's really where you want to be. >> oil and gas are skyrocketing. it's going to take the path of least resistance. i don't think supply and demand will hold here. besides the u.s. housing, oil and gas production may lead the market. >> the defensive sectors? >> better to be safe than sorry. yes. i think -- again, not the yields that are interest rate sensitive. >> bob, what's working here? i mean, the transports doing better recently? what else is working? >> one thing i want to comment on, notice that even though notice, the comedy base is up,

the energy stocks themselves are not following oil. that's because the traders and energy stocks are believing that the global economic growth is not there. this is fast money that's going into oil on concerns about global insecurities that may be very short term, including what's going on in egypt. i think it's important to point that out. i'm not so sanguine on materi s materials, for example. certainly that's an issue. a lot of people -- >> did you say sanguine? >> sanguine. >> you have sangri on the rocks. >> you guys don't have a target on the s&p for the next 12 months. >> that's right. it's 1780 but if i have a fear, it's -- we're going to get there probably before yearend.

the concern is that the market basically you have people on the sidelines who are upset that they are missing out on this rally. we were down only 5.8% through june 24th and people saying, darn, i missed it again. >> right. >> sam, do you believe that this is all a bunch of nonsense, due to the federal reserve? sam stovall, we're at historic highs. will you give earnings some credit here instead of just saying this is all the federal reserve? >> i haven't seen the evidence yet, bob. >> listen to what sam said. sam said 3% earnings growth is what we've got now. they beat by 4 points. i bet you if the historic comes in to play here, sam will have 6% earnings growth in the fourth quarter. >> i think we're going through a painful metamorphis, going from a liquidity-led rally to a

fundamentally led rally. >> have a nice sanguine on the rocks as you leave. >> thank you. one of historic's most notorious bears turned bullish back in march. there you are. >> there she is. >> is adam parker having a stran change of heart? also, they will lay out the three stocks you need to know right now. >> don't forget about commodities. will gold continue to lose its shine with investors? advice you can't afford to miss out on. stay with us. this special coverage of "markets at all-time high." [ male announcer ] this is betsy.

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welcome back to our special coverage of "markets at all-time highs" as the records hit record level, is this a bull or a bear? adam parker is chief u.s. strategist with morgan stanley. he has some experiences on both sides of that call heading into 2013 he made a bearish call on

equities but then he had a change of heart back in march and turned a lot more positive on the markets and the markets have soared more than 7% since that time. >> so, is he still optimistic and why? adam is going to tell us where he is telling his clients to put their money. first, let's talk about march when you turned from bull to bearish. what was it that you saw in the markets that made you more optimistic and is it still there? >> i figured the fed would be accommodate tif. we called it the hall pass, maria, which is no matter what you heard in the second quarter, you could still dream the second half was going to be better. we had bad april earnings, bad april jobs print, bad in may, production market goes higher, higher, higher because you think the fed is going to be there. as we talked about a couple weeks ago on your show, it changed because bernanke told you there's diminishing returns to the efficacy of that our qe.

good jobs data, market goes up. >> back when you didn't like the market, you thought earnings would continue to decline. >> right. >> or the rate of growth. >> right. >> isn't that -- i mean, the same debate we had last segment, is it about earnings or is it about the fed? your view changed from earnings to the fed, didn't it? >> look. we were right on the earnings. >> yeah. exactly. >> declined year over year in the third quarter. i think what mattered and your question is really about that multiple, or the p.e. ratio, and the fed was able to get the p.e. ratio higher. we didn't want to fight that p.e. ratio anymore. i think right now the call is much simpler. good news in the economy will be good news for the market. bad news will be bad. i don't think it's going to be a great earnings season but it's going to be better than april. april had bad guidance. i think it's going to be better. look at the companies that

report in may and june. they give us better numbers than in may and april. didn't see any big releases from tech to make me worried. i don't think the euro moved so much from april that i'm worried about big misses for those companies. so i think it's going to be a slightly better earnings season. still pretty constructive, but there's not much multiple construction left now as we saw in the last eight, ten months. >> does that mean that the market is ahead of itself and we're going to get earnings disappointment? >> i think we're going to get a little volatility in the next few months and if we can get the high earnings, i think the market moves higher. today, does it make sense to me that the market was up as much as it was with commodity and materials? >> no. bernanke didn't say anything new last night. we get that. we knew that. >> that's the thing that strikes me. the market is so needy. it needs to constantly be

reassured, right? we always keep saying, bernanke didn't say anything different. >> no. >> but he just said it again. >> yeah. >> he said it again and again. >> we talk about this all the time. tapering and tightening are two different concepts. tapering is reducing in a few months. that's not tightening. i think it's going to be hard. i think the two things i'm worried about and you are and everyone would be, one, we can't run a deficit of 500 billion every year and we can't create a trillion every year to buy our own securities. we know something about the markets being overheated and more accommodation than normal. we need to believe that the economy is growing fast enough that we can slow down on that stuff. >> what about international? for a long time, the best place to put money for morgan was japan. what about the outflows of emerging markets? do i just want to stay domestic, stay? the u.s., or should i be looking

at japan? >> i ultimately think you want more international exposure. it's sort of like don't fight the fed. it's interesting. we did a survey at a conference a few weeks ago. we asked them, do you think owning u.s. stocks with e.m. exposure will be positive or negative within the next few months? all of the responders said negative. we always try to be contrarian when we see what is going on. i think it's a trough and whether china's gdp is 4, 5, 6, isn't that better than europe anyway? >> sure is. >> if i have a u.s. gap, industrial, tech, exposure to faster growth and it's cheaper in the market, i'm starting to lean in there a little more. >> so what are you buying here in the u.s.? >> tech and industrials, they are the economically sensitive business. >> tech got killed. >> tech was underforming. i think it's time to get more aggressive. there may be one in

productivity, like software in particular and internet stocks. the defensive side, i still like health care. it's been our biggest overweight. it's so much cheaper than staples, utilities, telecoms. those are the plays that got caught up in the bond yield market. they don't have the ability to grow as much. there's a lot better dream on the health care side. >> would you buy banks going into the earning season right now? >> we added banks a couple weeks ago. i think a lot of it has played out. people realize the ten-year yield won't back up much more dramatically from here. paying for the front end to move two years from now seems early. i think they are going to have good results but i don't think they are going to go up as much as they indicate. i think it's more balanced on that group. >> uh-huh. >> great to see you, adam. >> thank you so much. adam parker. today's historic close sparked by dubbish comments by chairman been bernanke last night. what will happen when the market starts tapering its economic

stimulus and what happens when bernanke leaves office? our experts weigh in on that. oil has been scorching hot, raising the price that you pay at the gas pump. our expert says, has no fear. oil could plunge back to $80 by the end of the year. what is that going to do? i'll explain why when this special coverage of "markets at all-time high" comes right back. stay with us. ♪ norfolk southern what's your function? ♪ hooking up the country helping business run ♪ ♪ build! we're investing big to keep our country in the lead. ♪ load! we keep moving to deliver what you need.

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welcome back to our special coverage of "markets at all-time high." stocks have been red hot in july but it's nothing compared to the price of oil. gold, on the other hand, has been melting down. bertha coombs is joining us. bertha? >> gold as of today, the weak dollar helping on gold. the dollar swooning on the comments by fed chairman ben bernanke that the fed was not ready to pull the trigger regarding interest rates. gold rallying for a fourth day, reaching almost $1400 an ounce. that's about a three-week high or so, even though it's down some 23% year to date. we are seeing some more interest coming back to gold that maybe was an inflection point, seeing some stability. silver has been the very big mover, back at $20 an ounce and up. about 7.5% week to date.

crude had been on fire in terms of wti nymex crude, which is delivered at cushing, oklahoma. in the last two weeks we've seen big inventory drawdown but we saw some pretty good profit taking there in the wti. but gasoline resilient and resisting that downward pull. gasoline right now is at a three-month high. the futures prices back above $3. wholesale prices have really jumped over the last ten days as we've seen this big move up here in july and that is starting to feed through to the pump on the retail level prices are up 4 cents from last week. right now averaging nationally about $3.51 a gallon. bill and maria? >> thank you very much. today, notwithstanding with the oil rising recently and gold dropping, except for today,

equities hitting all-time highs, where do we go for investing? john kilduff is joining us and anthem. john, you said earlier to us on the air that you feel oil may have peaked here? >> i do. and it went right to where we needed it to get to in terms of putting a 15-month high that bertha just referenced coincided with where we are at right now. so it was a lot of volume. and when it was hyperbolic, i'm not going to say it was a total madhouse but strong enough of a move to now when we got this selloff that we go back down a long way, maybe as much as to $93 a barrel. >> take us back. why is oil where it is? 105 and above 106 yesterday? is it largely because of the unrest in the middle east or something else? >> because the middle east is still not restful at this point. >> it isn't.

egypt is obviously getting the focus. it's the high-profile situation right now. >> even though there's not much oil. >> there's none. there's none. >> exactly. >> there's that suez canal. >> what was really happening behind the scenes, if you will, was that both libya and iraq had significant oil addages over the last month. in libya, it was port strikes, labor strikes. their oil was offline. that has all come back. that has helped drive this price down and also the situation was also referenced by bertha, we're kei getting this oil out of cushing, o oklahoma. >> anthem, gold, i said this, i don't know what makes it go up or down. now suddenly it's going up. where do you see it going here? >> well, i think ultimately it's not really about gold going up

or down but really what the world's faith is in government-controlled currencies. that's really the determinant of price and gold. what the market is telling us that they are starting to come to the realization that the tapering estimates for qe starting this fall are very unrealistic in that debt begets debt. the more dead laid on our economy, the more debt servicing occurs. we're at 1.3% for the federal government in terms of their debt servicing levels. $7 trillion of debt and how much longer can we go i think the market is asking and i think the market is realizing we're going to need qe for the foreseeable future. >> anthem, bottom line, do you think oil prices go up from here or do you agree with john that they will go down? >> i think they will go up from here. temporarily they will go down but longer term, they will go up. like i think all asset classes

will. >> oil versus gasoline? are you talking about oil or gasoline? >> i'm talking about gasoline and oil. i think both will go up in the foreseeable future because the price of all goods are going to continue to go up due to monetary inflation so we're going to see that trend, maria. >> there is a lag from gasoline from oil. how much higher is gasoline going to go here, john? >> could be a sticker shock at the pump, bill, if it doesn't reverse soon. we could be looking at 10 to 30 cents a gallon over the next few days. >> why? >> because we've rallied 10% on gasoline and that's 30 cents. >> is that the same reason as oil? >> we had a very strong demand this fourth of july. it made some sense. the refineries were cranking it out. so again i think it's going to be temporary there as well. i would point out, our debt to gdp is shrinking rapidly.

treasury reported a big sur plus today, this afternoon. the monetary argument for these prices to inflate i don't think is there. that's why i'm bearish on oil and gold for that matter. >> thank you both. good thoughts on energy. >> appreciate it. are there still bargains in this market? the fast money traders say yes. including some names that you might find surprising. plus, the market used to trade on earnings. nowadays it seems that trades only base on the word from the fed. will the market ever stand on it is own two legs again? a closer look at "markets at an all-time high" when we come back. geoff: i'm the kind of guy who doesn't like being sold to. the last thing i want is to feel like someone is giving me a sales pitch, especially when it comes to my investments. you want a broker you can trust. a lot of guys at the other firms seemed more focused on selling than their clients.

that's why i stopped working at my old brokerage and became a financial consultant with charles schwab. avo: what kind of financial consultant are you looking for? talk to us today.

oh, the conversation you missed. >> hi, everybody. welcome back to this cnbc special report, "markets at all-time highs." i'm maria bartiromo along with bill griffeth. >> the market is at an all-time high. >> which company should be on your buy list? we've got three fast money guys to weigh in here including the stock picks to surprise you. >> joining us, brian kelly,

founder of brian kelly capital and steven weise or shorthill capitol. he's an author, "unhedged," a killing in the market. and jim urio who plans to read steven weiss' novel. >> i already bought it. i really did. >> then why haven't you read it? >> what's your review of it? guys, what is going on in this market? you love -- you have to love the volatility. we've had a real pickup in volatility in the last month or so. >> sure. that's here to stay, too. if that's the one thing we could take away from this, is what the fed has done is tamp down volatility and now they are starting to let it out a little bit. i happen to be of the mind set that that's not a great thing for higher asset prices. >> you're not that bullish. >> i'm not that bullish. >> how come? >> when i look at what the market is saying today, it's all built on what ben been rnanke i

saying. when you book in a book valley higher than 9%, since the back half of 2009. >> right. we've never had corporations that have been leaner, have been more productive. >> 3.6 billion in cash. >> 3.6 billion in cash. we're in the cusp of another -- earnings have doubled over five years and we can talk about what volumes would be for the markets and the fact is they have moved up. >> you're supposed to surprise us with some stock picks. >> so i can't in good conscious say buy in market with both hands but there are markets that have participated with the market. one of them is apple. i think that's a great value at this int po. you can go with apple, get a good dividend there. i think they are going to come up with a mobile product and the surprising one that a lot of people have not heard about is

golar, glng. when you look at natural gas prices, very cheap here in the u.s., very expensive in the rest of the world. it's just a natural thing. >> i am j, you also like apple, right? >> i do. i think p.k. stole it from me. i am long apple. i've been buying it a little at a time. i agree with b.k. it's been beaten down. i also like ford. i'm long it as well. the fact that it made new highs even after a herculian run, the thing that is most easily fundamental to explain for me is my love of merck and the health care sector in general. because before we were just buying utilities because the 4% dividends looked so sexy

compared to 1.6 treasury yields. now it's 2.6 treasury yield. you have to look at something that has a potential for growth. >> growing dividends. >> i like citi. still like it. even though it's $50 now, it's back to where it was at the reverse split. vikram pandit is out. you have mike corbett, who i know from my solid days, is going to do a great job. lots of low hanging fruit still. and then gilead, they've got aids vaccines and finally, eaton touches every corner of the economy. they bought cooper industries. my guess is that they've sort of low-balled the terms of the synergies that they can get from there. it's an economic place so you have financials which do extremely well in this environment and margins moving

up. you've got health care. it always grows. and you've got basically the -- >> you took the gilead, hepatitis c is a big market. >> huge. >> if i'm looking for a dividend, do i really want to go to citi? am i going to get a dividend from citi at any time soon? >> i don't think you should be -- >> it's not a reason to buy citi? >> what we saw with the dividend plays is 5% yield that you have to be there a year to get because they pay you quarterly, you can lose that in a day if rates back up again and i think they will. nobody is sounding the all clear in the bond market. it's not over. rates aren't over going up. >> i have a quick question for you, steven. >> sure. >> i bought bank of america because it's a yield curve play for me, too. yield curve seems to be good for the bank. is that part of your reason for buying citi as well? >> yes. and they are cheaper. i like jpmorgan but i don't own

it. >> how come citi and not jpm? >> they are a discounted book versus jpm has a premium book and i think there's still more to come out of bank of america. >> being of the mind set that perhaps this isn't going to -- we're probably going to see a flatter yield curve than steeper, i wouldn't be into the banks tomorrow. maybe if i have a pullbeing acki start to see that, then yeah. buy with both hands. >> just to be clear, you're not bearish but not -- or are you bear? >> i have been bearish. >> why sell it to the rally? >> i do but it's too soon for me to go out and say short this. i haven't done it yes because the momentum is too strong. we are at an inflection point. there's some new paradigm and we're going to blast through the highs. >> i think we're in another cusp

of a huge straight up in the market. there's so much cash coming to this market from the cash lines. we're going to go a lot higher. >> we've got to go. thanks, guys. >> who did it, by the way? >> i can't tell you. >> don't say. >> i can't. >> good luck on the book. let's take a short book. and then there are many opinions about what is fueling these markets. it comes down to one person. >> yes, we know who that person is, chairman bernanke. will his remarks hurt tomorrow? and what will happen when the tapering actually gets under way? we'll get to that coming up. hey! did you know that honey nut cheerios

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welcome back to this cnbc special. the markets at all-time highs tonight. i'm bill griffeth. >> and i'm maria bartiromo. the name ben bernanke comes out with regard to the markets. the impact of the fed chairman was nevermore apparent after his remarks yesterday. how long can he hold sway over these markets?

joining us is danielle hughes, dan greenhouse with btig, and matthew slaughter, professor of dartmouth college. dan, what do you think? it seems that the markets have having a tough time at what ben bernanke is saying and he said the same thing last night. how do you read the fed? >> he gives you a chance to buy into it, too, like we saw over the last month when he talked about tapering the markets that fell off, he came back and reiterated what he wanted to say all along. how do you play it? it's quite difficult. ben is the leader in what is going on in the market. yes, we have earnings that are very important. we have political points that are very important but everybody is watching what ben bernanke is saying and we're tied to it. >> what do you think the fed wants from the market? do you think they want all-time highs in the stock market? do they want long rates? is the ten-year yielding more than they want?

what do they want, do you think? >> my conversations suggest that they are perfectly happy to see the stock market at all-time highs and interest rates at 80 points higher. that's exactly what they want. they looked at -- earlier this year they looked at the stock market going up every day, looked at the primary dealers and wanted to abort that to a certain degree and that's what they have done. >> professor slaughter, isn't there a real wealth effect to the market going up? i'm wondering, as the fed continues to encourage riskier assets with rates at rock bottom levels, is that the point? get the market higher, get the market going up to create a wealth effect? people feel better, they spend more money? >> so that clearly is what chairman bernanke has been trying to do and there's a lot of research that shows higher equity prices stimulates consumption and business spending. part of the challenge is, we're

not just in the wake of a financial crisis but the global economy, even before the financial crisis which changing in deep and fundamental ways with the recession of china, india and others into the global economy. if you go back to the crisis, chairman bernanke was talking about the global saving glut. what they are trying to figure out is how important are those forces? how important is the financial crisis? and dan is right, ideally they would like to get back to a world where you've got higher interest rates and yet real economic strength that can be supported despite those interest rates. >> is it the fed for the u.s. or japan or for china? all these countries -- >> dictating the ecb? >> this is the old joke about the president of the united states also that only the u.s. gets to vote for ultimately someone who decides what happens across the globe. >> and that's chairman bernanke right now. >> i actually disagree with danny's earlier point. listen, btig's clients are real

peak. we are not machines. when i have conversations with people, obviously it's dominated by ben bernanke but people don't buy stocks because of ben bernanke. they are doing so because the prospects of that particular company are more than today. >> they are buying them because they think the market is going to go up, right? >> the machine did not move the market. >> no, hold on. they don't buy it because they don't think the market is going to go up. >> what are you talking about? they are not buying it thinking that it's going to go down. >> someone buys dell or hewlett-packard because valero is going up. today, the stock market went up because there was optimism about ben bernanke, no doubt about it. at the end of the day, you look at valero after the close, it did not drop. >> they are spreading out. they are not specking a stock and saying, i'm going to do this, i'm going to do that.

>> that may be the case. yes, i think clearly over time we're seeing an increase in what i'll call passitivity of the market. >> are your clients risk averse right now or putting money into the market? what are you seeing? >> listen, the knock on hedge funds right now is that they are underperforming the stock market. our clients are risk on. they have been risk on. maybe they are picking the wrong stocks, maybe they are picking the right stocks. at the end of the day, the analysis, which is the economy is et going better, jobs are growing and the fed is providing this huge tailwind, maybe people haven't bought into it to the degree they should have. >> as powerful as we're making ben bernanke out to be, doesn't it work the other way around? the markets dictate what he's going to say? let's face it, he slightly tailored his message yesterday compared to what he said during

his news conference. he realized, i think, that the market was going to respond more positively today than the last time around. don't you? he's beholden to the markets rights now, to some degree. >> so that insight is really important. it speaks to what dan and danny are speaking about. there's a lot of other things. you mentioned the other central banks around the world earlier as the world becomes more connected and deep changes happening in the global economy with the rise of incomes and emerging markets and technological change. those are the things that help determine the change of markets overall. chairman bernanke has to take account of all of that as well. it's quite involved. >> do you think this market goes higher? danny hughes? >> i do. i think it goes higher. i think there's a lot of steam. not only individual investors but institutions have to play this market and they have to play it out. the next quarter may be a better quarter than we expect. >> dan greenhouse? >> the market always goes

higher. >> over a long period of time? >> what are you, jpmorgan, the market will fluctuate? >> 66% of the time you're going to be right saying that the stock is going to go up. that's why people say to buy stock. >> very good. you buy it because you think it's going to go up. >> thank you all for joining us. >> thank you. well, there will be no remarks from ben bernanke for tomorrow for the markets to react to but there's asia, europe, other factors that will affect how we end this week. good night. ♪ this summer was definitely worth the wait. ♪ summer's best event from cadillac. let summer try and pass you by. lease this all-new cadillac ats for around $299 per month or purchase for 0% apr for 60 months. come in now for the best offers of the model year.

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welcome back. markets in asia set to open in a little more than 30 minutes from now. will the rally carry over there? cnbc emily chan has a preview and she's live in asia. hi, emily. >> reporter: hi there, maria. good to see you. asian markets are seeing a rise on record closes with the dow and s&p. it's already friday out here in japan. south korea and australian markets come online at the top of the hour. the in. nikkei is higher and a three-week high for australian shares extended gains. hong kong enjoying the trading day in 90 minutes after having their best day in six months. investors waiting for more clues on how to slow the economy with gdp due out next monday. that's all for me.

back to you guys. >> emily, thanks very much. my favorite static of the day. we've had 132 trading days so far in 2013 and of those 132 trading days, the dow has hit 24 all-time highs. >> amazing. >> nasdaq reaching the high in 13 years. nasdaq -- i remember the days of nasdaq all-time high of 5,000. >> it's pretty amazing. we're kind of back to goldie locks. the fed is going to taper but they are not in any rush. i think that was the psychological message that bernanke was trying to convey yesterday. we've taken the edge off the tapering worries. the one thing that worries me a little is watching the bond yields. we did have a little bit of a rally in bonds today, but not much. i wouldn't say we're rallying in the bond market. if the bond market starts sinking again, we'll be back to

a little bit of a crisis. we're at 4.5% so we're up from 3.5 to 4%. if you do math, that depends on who you are and where you are going, may add $150 to a $300 mortgage. it may push a few people out, make them disqualify. you're going to see people going to adjustable rate mortgages if they can't want to stay in the house and can't afford it. you were talking about earnings. five banks control 50% of the mortgages, including jpmorgan. so i think you're going to hear a lot about the morgan situation tomorrow. i think the important thing is we've been selling banks today because sell into earnings is typical for banks. that's a little bit of an issue. remember, they have been huge outperformers this year, this

quarter. >> and you have this noise about regulation. >> that's certainly weighing on them right now. >> raising capital ratios? >> here's the big thing. earnings are going to be very good. they are going to be the -- financials will be the best performing financial sector in the second quarter. >> because they are coming from low base? >> things have been improving. trading has been getting better. volatility is very high overall. wealth management has become very huge for some of these big banks right now. baby boomers are putting money into organized wealth management systems run like the morgan stanleys of the world and i think the big thing is the banks have run up dramatically in the second quarter anticipating good earnings for this quarter. the other thing is, how much upside is there for that? that's why you are getting the selling for that. >> see you tomorrow. >> we'll be there. thanks, bob. thank you for enjoying us

"markets at all-time high." we'll have an exclusive with ceo and chairman of jpmorgan, jamie dimon. >> the most important hour of the trading day. >> you've got it. >> we always like to call that. thank you for joining us. stay tuned for "american greed" next. >> have a good night. hey! did you know that honey nut cheerios has oats that can help lower cholesterol? and it tastes good? sure does! wow. it's the honey, it makes it taste so... well, would you look at the time... what's the rush? be happy. be healthy. the last thing i want is to feel like someone is giving me a sales pitch, especially when it comes to my investments. you want a broker you can trust. a lot of guys at the other firms seemed more focused on selling than their clients. that's why i stopped working at my old brokerage

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>> narrator: in this episode of "american greed: the fugitives," fred monem is presented as the paragon of efficient government spending in oregon. >> he was, within the state prison system, considered a hero. >> narrator: he saves the state department of corrections millions of dollars a year feeding the inmate population. but according to the fbi, monem is taking a little taste for himself. >> he committed bribery, money laundering, and a host of crimes. he stole at least $1.2 million from the taxpayers. >> narrator: but by the time the fbi tries to get him to face up to his alleged crimes, he's on a plane across the country. >> and before we could unravel it all, he was gone. >> narrator: and later, the father-and-son team of juan and harold rangel are the toast of the latin amican