hathaway. "street signs" starts right now. >> welcome to the the "closing bell." this market has been ultimating to begins and losses. looking at double-digit decline. >> where did my notes go? we are down. all of a sudden this mark set feeling tired. we hit all-time highs again on tuesday and sense then, we've been struggling. even though earnings have been pretty descent today. the highlight is facebook by far. >> oh, wow. up 28%. that is powering nasdaq higher just as apple did yesterday. but the market is meandering here. >> one of the issues today, the u.s. attorney is not ruling out

indicting steve cohen himself. a case rattling the financial world. we have all sides covered today we are live from the courthouse coming up. >> david cote will be here in a few minutes. defense firms going full steam ahead. despite sequester cuts. we will get his comment on earnings. plus find out what led him to step down from j.p. morgan's board. he did that in the past week. >> let's check the market as we approach the final hour of trading. 15,514, last trade of the blue chip average. nasdaq in positive territory due it a handful of gainers as well as facebook. facebook up better than 20% right now. 25% earlier. s&p 500 looks like this. standard & poor's is fractionally negative.

>> bob pisani, what is going on here? >> higher interest rates are hurting the stock market. can't say it more simply. interest rates up three days in a re. don't have more to say about it. orders are down 12%. horton below expectations. horton's conference calls, what everyone is talking about. causing an increase of cancellations. put up will full screen. first time buyer shop so they would notice the first time buyers got hurt. cancellations go from 20% to 25%. doesn't sound like a lot but it effects overall orders here. right now the problem is home builders are tough to invest in physical we find out if this continues into the third quarter. or if the fed steps in and keeps rates lower by simply not going to removing their stimulus. very simple here. let's move on. not just because of facebook. qualcomm, what's the problem?

no problem with smart phone sales. how is the earnings doing so far? here is where we're at. about half way through earnings season, folks. 4.5% earnings. they laugh at me. i said 5 to 6%. i'm still saying, we will go there. 4.5% growth on earnings. half percent on revenue growth. quick comment on this indictment of sec capital. down here they are worried about this. they are worried because it is said for years they are 3 to 5% total volume on the new york stock exchange and in the top 10 of commission payers on the street. we all know this is a tough business now. low volume and very low margins. you even reduce trading by a significant firm if that happens. even if it is cut in half. that is 2% of volume with the new york stock exchange. bill and maria, that could effect business. people are worried about the general impact it might have on their willingness to go out and trade. very big traders. >> sure.

big number, 2 to 3% of volume. thank you. we want to break done markets. our "closing bell" exchange. michael far from far miller an washington. united capital financial advisors and author of money code and our own rick santelli. gentlemen, good to see you. michael, what do you think? do you think the sec capital indictment will have an impact on the markets? >> some sort of dampening effect again? >> maybe lightning up in the volume. it certainly is not positive for that firm and not a positive for volumes, i don't think for sec. i think a good deal of it might shift to other places. i don't think you will see a market impact. >> joe duran, what do you think? we are just starting to see in-flows into mutual funds. little guy just starting in a meaningful way dipping his toe in this market right now. now this comes along. do you think it will have some em pact on that? >> i don't think i'm the rich investor, no. i think we care a lot about it. we're in the keeping up with this kind of thing.

but the institutional concern that the average investor has is already there. i don't think this makes it worse. they already assume the worst. and generally i think people have not a lot of choices of where to put money in the stock market. they are investing in theunder are lying companies. but i this i in general we have all -- our industry has taken hits the last few years. >> rick santelli, jump in here. anything there in terms of indictment and what is going on in terms of fixed today. >> down on this trading floor, they are real cynical and cynical about everything. >> really? >> i know, isn't that a surprise, bill? i heard, if the government goes after you for six years, they will find stuff. now take that for what it's worth. and the other conversation of course is, exactly what bob is talking about. it seems as though the unintended consequences of this -- well, we want to go after people that supposedly do commit crimes. but of course, it is not proven

yet, is it it will impact business. between fed programs, between things like repo market and how it might change dramatically due to issues at dodd-frank, the market will be less than it used to be at a time where we may need it over the next several years. those are the kinds of conversations along with two more. the capital good shipments, not orders, shipments, nondefense ex aircraft at minus 9/10, and the yield curve continues to steepen which means that you will see how you're rating long mature its. >> and michael far, if you see rates continue, do you agree it'll put a crimp on the stock market here in does that concern you as an investor? >> at some point it does. it is miraculous that we have seen rates go up a full hundred basis points and stocks are

selling near all-time highs. bernanke may have pulled off some piece of magic here. and interest rates, gives the fed a lot more room if they need to do something. but i also think that what bob pisani said is important. revenues, not growing so much. earnings are still okay. that can't last but for so long. right? >> exactly. >> you can't have bottom line increase if top line is stagnant. sooner or later we have to see that top line tick up. that is an additional head wind on top line growth. >> that's a great point, michael. joe due ran, weigh in on here. you have been saying portfolios have been positioned for exposure to firms that can sustain revenue growth. where is the revenue growth? where is that? >> i think while it is slowing, the emerging market is up for opportunity. and i think you need to look at two things with rising interest rates. companies that don't borrow as much money where their margins are coming done and companies with a higher return on equity. then secondly, companies that

gre top line. so technology is an area that's really been in the a long time and there is an upgrade about to occur. we have been telling people, value is a great place to be with interest rates going down and usually in late stage of gr growth you want it shift to more growthy stocks. global, large and high margin businesses. so we think, again, what you see now is probably the markets, i feel very good about the markets holding up the way they have. and you just need to think differently about the next stage of the market not being the same as what we have experienced the last few years. >> growthy being a subset of the growth stocks out there, i guess. >> that's correct, yes. >> gentlemen, thank you all for joining us today. appreciate it. rick, tell those guys not to be so cynical. >> cheer up. >> smile. >> you don't want it work with that, bill. >> cubs will win some day. i know that. thank you all for joining us today. >> thanks, guys. meanwhile, we've been

reporting all day, indictments handed down by federal prosecutors on insider trading charges against steven cohen's sec capital. u.s. attorney won't rule out more indictments on the way. bertha coombs with the latest on this financial information shaking the world. >> this financial office has gotten 75 indictments prosecutions and convictions and people with insider trading. yet they say sac capital as an organization, insider trading wz was persuasive. within the doimt itself, though there is no actual charge of steve cohen personally, it certainly does say that he knew what was going on and presided over what was this culture of what preet called criminality.

this week, pleading guilty to those charges and is cooperating with this investigation after becoming the eighth person with a firm to be charged. >> when so many people have been charged with insider trading, it is not a coincidence. it is the substantial and pervasive institutional failure. >> sac is denying charges. their spokesman said the handful of men who admit they broke the law does not reflect the honesty, integrity and character of the thousand is of men and women who have worked for the firm and they say they continue to operate through these matters. maria and bill? >> ber that, thanks you very much, bertha coombs. >> dow is down 7 points right

now. we've got a lot of earnings coming out. so maybe there's a wait and see attitude. we had blockbuster numbers from facebook last night. apple, big numbers the night before. maybe something from amazon or one of the other companies coming out. >> look at this market. this market wants to go higher. by the way, interesting point, up to 4.5% earnings growth so far and estimate 3.6%. >> revenue recession is what we see right is now. >> exactly. we will take a short break. when we come back, ceo of the the year, david cote of honeywell with us. stock up almost 300% since he tock over. how do you like that return. plus we find out why he stepped down from j.p. morgan's board last week. >> tonight, this week, apple and facebook, huge movers. you cannot afford to miss these reports, if you're listen awning radio, we are talking about amazon, newmont mining,

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the sequester cuts were supposed to hit defense firms especially hard but that does not appear to be the case.

they've been doing just fine. according to the washington post you can thank bet are planning by the firm's top brass. >> our next guest heads one of those companies. his sequestration plans helped another strong quarter. to top it off, he was named ceo of the year by chief executive magazine. honeywell ceo david cote joins us. congratulations, how did that make you feel? ceo of the year? >> pretty nice. especially when you look at 11 years ago where we started as a company. you remember three integrated companies. 8 billion in write offs. legacy issues. and the press night say at that time was not that kind towards honeywell or me. >> what about sequestration. was it a nonevent for the defense industry or no? >> i wouldn't say it was a nonevent but i would say, everybody looked that the and said we should assume this will happen. and start planning for it. certainly that's what we did. and said there's just too much inertia in the system and you're

better off betting whatever it is, good or bad, if that's what's in motion, assume that's what's going to happen. so we already in our budget assume bed 80% of sequestration happened. had a contingency plan for the remaining 20. plus defense is about a80% of o our sales. >> ways just going to say, defense is not really your primary business any more. >> i can't speak for everybody else but for us u.s. defense is only about 8% of our sales. with all of the acquisitions i've done, almost nothing is done in that segment. it is too iffy over time and i don't want it bet our company's future offer that kind of market. >> so where is your growth? >> from around the world. ? >> in terms of industry. >> oil and gas has been tremendous. we started really doing a much

bigger job with oil and gas starting in '04, '05. i just felt good about that and energy efficiency so we started investing in both of those. i with say both of those trends paid off for us pretty well. aerospace in general is also good on the commercial side. >> energy seems to be a game changer for the u.s. economy. when you look at where oil is now, a hundred dollars a barrel, $106 a barrel recently, is that sustainable. do you think that's warranted where it? given the fact that everybody is talking about the u.s. becoming an energy exporter at some point? >> i would say one of the things that surprised me about the oil industry and the impact on the economy is how little i actually know. when i go back to when oil was about 20 bucks a barrel, i guess in that '04 timeframe, if you had asked me on this show, gee, dave, if oil goes to $30 bucks a barrel what happens? disaster. the economy will tank.

it went to about 150. that now backed off to 100. i don't think that's the biggest detractor to our economy right now. although i do think the more we encourage energy growth, oil and gas in the u.s., that could be not just a huge stimulus for job growth, but it can generate money for the government and i think it is ihs study recently done, says through 2035 it will add about $2.5 trillion to m municipal and federal budgets. if they can get back back down to 2 bucks a gallon, that's like a tax cut for all of the people we are talking about. >> easier said than done. >> there are few refineries that would help. >> refineries would help went production of oil and gas would help also. >> we would be remiss if we didn't have about j.p. morgan. you were on the board five years. you stepped down in the last

woke or so. why y? >> exactly what you saw in the announcement. increasing time commitment if you're on the board after financial institution. and i run a company and i've got devote -- that's my primary responsibility. >> you didn't know that when you went in? >> i didn't expect the type of time commitment it has growing into. and it is just too much. >> because it was j.p. morgan and what they have been going through the last few years, london whale, et cetera. >> no, no, this is just in general. i think my first board meeting is where the crisis began. i don't think the two were correlated. but but over time, it just consumed more and more time. i can't do that. i have a company to run. >> you have a day job. things going well at honeywell.

what is it going to take to get this economy moving? how do you characterize thing? >> i would say, until we get gdp growth above 2%, it is tough for people like me to hire, for example. 2% gdp growth, i don't have to. i can be productive enough every year. so we have to find a way to get it above 3%. couple big things is the energy piece we already talked about. we ought to just enable that more than we are. second one is address the long-term debt problem. and not get caught up in this austerity versus nonausterity. the point is the second -- >> you said in the simpson-bowles -- you have a stake in that -- >> we all do. >> ben bernanke says it is not about monetary, it is an fiscal policy, that's the drag on the economy. >> we agree on that one. >> is congress likely to do

anything in the near term? >> it is tough to predict. i often say there is relentlessness of purpose you have it have here. 536 independent contractors and you try to get enough of them to say, yeah, this really is a real issue for the country. this is not just a political argument. and we need to come together to do something. and both sides will be unhappy. we have to address entitlement. specifically medicare in the second decade. and the price for doing that is going to be that there will have to be a tax increase. if you're republican and you don't want it hear that and if you're a democrat you don't want to hear that. that's the deal that has to come together. >> how about obama care. how much of an expense is that? tz is tough to know. even at this point we don't know about about it and its impact to have a sense for how well the exchange is going to work. how well are the exchanges going to work. we are still waiting to know all this. i would say the jury is still out the way that works the way the advocates say or doesn't work the way the opponents say.

>> good to see you. >> congratulations on your success. >> thanks. it feels good. >> we have a market that is mixed. dow industrial down about 5 point. >> apropos to our conversation. obama says the they nodes to come together. gene sperling comes in, weighing in in just a few minutes. >> facebook, trading the highest day since its ipo flop. up 27%. somebody says get in quick because this stock is about to take off at a lot higher levels.

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s&p 500 trying to snap a two-day losing streak. josh? >> hey, bill. some of the big movers we are watching in today's trade start with facebook which is soaring higher. that's after the company posted a big increase in mobile ad revenue. the street got busy upgrading price targets. also, check out oneoke. he are trading into a stand alone publicly traded company. missing estimate on both the top and bottom, expected to go

up 4%, instead down 12%. and teradyne makes chip testing equipment. out for the quarter. doesn't impress. off session lows but still down nearly 4% right new. maria, back to you. >> thanks, josh. president obama blaming the economy front and center but account proposal pass in a divisive washington? let's get reaction from gene sperling. president of national economic council. gene, always a pleasure to have you on. welcome back. >> thank you, maria. >> what is with the president making these speeches? going on different areas of the country. to talk about different areas of the economy. what's the gel? >> the goal is to refocus washington on the reason we are supposed to be here. which is economic growth leading it a stronger middle class. maria, i live the budget battles and green eye shade discussions.

but it takes us awith a from what's fundamentally at stake. what is going to make us more competitive. what is going to make the middle class feel more secure. make sure we're embracing globalization, but in a way to strength, not hollow out the middle class. the president will take about what that agenda is. there is a lot of areas where if we can't get legislation, the president will use his full powers to move the bull forward in areas like skills and college cost and things where we will make progress one way or the other. >> so how do you do it, gene? you and i spoke a cup weeks ago. i sensed your frustration. how do you characterize things? how do you move the needle? practically speaking, how do you break out of the 2% growth? >> maria, you're right to say

the level of growth isn't good enough for the president. private sector job creation has been the strongest this six months since 1999. but we aren't going fast enough. but what is interesting, if you look at private sector growth, look at that element of the private sector, you see growth in a stronger position. so we need pro growth fiscal policy and that means one that as david cote would deal with long-term fiscal pressures but also be doing things like infrastructure. the president's initiative to deal with deferred maintenance. put people to work. that's good for growth right new. then also leaves room for us to invest and education, healthcare, infrastructure and things that matter. chris van holland, chief on the house side, just got information saying that the current policy republicans are proposing is likely to cost us 7 percent e

growth next year and 900,000 jobs. so we could have a pro growth fiscal policy good for infrastructure, good for jobs, smart for demand. leave room to invest and what's important for competitiveness and make sure that our long-term deficit reduction is done in a sensible way that gives confidence in long-term instead of hurting growth and jobs and investment right now. >> did you just say 7% growth? >> it would take .7%. 7/10. >> oh, i was going to say. >> if we have a pro smarter fiscal policy, we would be growing more. i think there are things to do to provide more certainty in the housing market so there is less foot back rest. i think all those things are smart public policies. the united states has been pushing for. i do think that if we had those type of policies we could be over 3% and we could have higher and more sustaining growth.

more private secretarior job creation. that could help bring down employment and particularly long-term employment. >> gene, let me ask you about detroit. is federal aid in the cards for a bankrupt detroit? >> i think you have to distinguish between two things. when you come to the general insolvency issues, dealing with the $11 billion in unsecured credit, those are things i think the leaders in michigan and detroit understand. they have to take care of. that has to be their responsibility. that said, we have always been a partner with our major cities and their economic development and revitalization and of course, detroit is one of mer can's great cities and of course wore going to look for ways that we can work with them. they have a very dedicated private sector. people from quickin loans, others in detroit, we want them to know while they deal with this fundamental fiscal challenge, that we will be their partner in their economic growth

and revitalization and we want them to remain the great american city. >> so i think that i'm hearing is that the private sector is critical here in detroit and there aren't going to be any bail-outs. >> you know, i think we can -- i don't think anyone can help with that broader distress fiscal challenge they have. it doesn't mean that we and the state of michigan and private sector can't be there to say, okay, how can we help you come back. how can we help show that there is still commitment to you? there's a lot of great things in detroit. go to a tiger game at comerica park. you are downtown, you see a lot of great creative people moving in. there can be hope there. they've got a very, very difficult issue they have to work through. i think they understand it is their challenge to work through. that doesn't mean that we, along with governor snyder, can't be partners this helping them revitalize and come back and be

the great american city that they've always been. >> it seems like given what happened in detroit, given the fact we have this unemployment, less than 2% growth now in the economy but kpexpectations wille a 2% grower, it is difficult for the federal reserve to walk away and start this tapering. what is your sense in terms of qe? has it worked? >> you know, i have a lot of thoughts on that. you might remember, maria, that one of the things you do at the white house is respect the independence of the fed. while that's a good question and i have my thoughts i will keep them to myself and respect the fed's independence. >> do you know janet yellin? do you think will be the successor? i'm not asking you to talk out of school here. do you think it is janet yellin or summers? >> two thnings i don't do is comment on the feds or personnel choices before they add chance to announce them.

i know names in the news. i know them. they are great people. they a they are smart. they are excellent people. when the president is ready to make any personnel announcement, we let him make it. >> gene, what do you think is the most important policy that the president can lead in terms of getting growth moving in the u.s.? is it tax policy? is it deficit reduction? you talked about spend awning infrastructure. but you know we're coming up to that time of the year when everyone is expecting another fight. we can spend on infrastructure. spend on education. but where did the money come from? are we in for another fight on the debt ceiling come the end of the summer, gene? and how do you move the needle on economic growth? >> i think the reason the president is out there giving the speeches he is is he is trying to move washington away for a focus on manufactured prices, manufactured budget battles. trying to end the era of anyone. democrat or republican using the

threat of our nation's -- and remind us that our goal should be to hit the kind of economic growth more broadly shared. obviously the president's legacy is going to be that he acted boldly and swiftly to take us back from the brink of depression. what the president has always said is that he never wanted to just build this back to where we were. he wanted to bring back to a place where we can feel more con if i didn't we are regaining mer can's competitive edge. i think we are more competitive from manufacturing and services now. we have great opportunities like natural gas. we are more competitive and the question is, can we get rid of this manufactured crisis? can we seize those advantages? and can we seize them in a way where benefits are not just going to a few but are helping lead it a broader and more secure middle class. that's always been the fundamental economic vision of

our country. >> i'm glad you mentioned natural gas before we go. a lot of people see this in terms of jobs. should we see more fracking and oil discovery in the u.s.? >> i think we should be encouraging of things giving the u.s. manufacturing and service location that we did not necessarily have the last decade. we see the words insourcing used more often. sometimes than off-shoring and outsourcing now. you have top consultant in our country telling people to rethink, bringing jobs back p.m. natural gas is a piece of that story and one of the cost kpenttive advantages that i think we need to encourage in our country. >> gene, good to have you on the program. thanks so much. >> thank you. see you soon. >> gene sperling joining us from the white house today. we have a market that turned positive. just by a fraction of two point. but feels like the money is moving optd boy side. >> i agree.

i think a market will still good higher. struggling at this point with higher interest rate and lower revenue. facebook soaring as its mobile strategy begins to click. with that stock down more than 10% from its ipo, somebodies face book looks cheap. we will talk about that coming up. >> and can steven cohen of sac capital survive? even if it is not found guilty of insider trading charges? we will talk about that on the program. stay with us. are you sure we should take this billboard down?

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as ceo since 2001. maria a couple interesting things in terms of timing i don't think this is ufrn expected we have no indication this would be happening soon. the key thing is that time warn he is in the midst of a major battle with cbs over fees. we could see time warner cable

in los angeles and dallas lose cbs. time warner was in talks with hulu to be part owner of that. that is something glenn blorit s interested in. glenn brit is stepping down. he was ceo of time warner since 2001. back to you. >> thank you. that earning surprise, the beat giving facebook shares its best one-day gain helping the stock hit its highest level in more than a year. how soon until it returns to the ipo price of $39 and is it time to like the social media stock? we all like using that line. let's talk about the technical side. rich ross, global technical specialist. and on the fundment yl side, jason covering the nim for oppenheimer and company. jason, you reiterated your outperformed rating. so was this report a game changer for you? >> look, you know, we always

felt there was an opportunity for mon monotising. it is a third of the level of yahoo! on the display side. we think this quarter, the company grew organic advertising. 63%. that's up from 43% in the first quarter. we think that got a lot of people's attention. >> okay. rich, what about that chart? is this game today a launch pad for bigger things to come or not? >> it certainly is, bill. we see significant upside today's action was a technical game-changer. when we bring up that chart you will see buying a stock is not an early call but it is the strong call. after losing 61% and three months of that ipo we settle no a textbook symmetrical triangle or coil. now we have run into resistance of $32 in the past but today break through from that coil releasing that energy and taking out that key resistance. i think that sets the stage for advance up to $50 a share.

i would be a strong buyer here on today's action. >> jason, could you see $50? >> we focus more on the fundment yl analysis. we increased our price of $36. that's about 31 times nextier's earnings. clearly at this company can accelerate revenues, that multiple can move higher. but at this point, we think $36 is a good fundamental price target as we look out. >> and very quickly, rich with be could 38, that ipo price, be resistance for this stock? >> certainly you will get people want to take profit when they get back to the mendoza line or break even. but the reality is you could see 38 by this time next week. i think this is one of the great stories of the second half. the horse has left the barn. >> time to get on the facebook, both of you say. >> 31%. that's big. >> but still not back to the ipo price. >> we have about 15 minutes before the "closing bell" sounds

for the day. a market that is turning positive here. up 10 point on the dow. >> amazon, highlighting another big day of earnings after the bell tonight. when we come back, find out what to expect from all of the big names set to report. there are many. >> here is a little known amazon fact. international paper, largest pr vierd of shipping boxes for the on-line retailer, ceo john faraci will be here explaining how e-commerce impacts international paper. that's next, coming up. >> check out talking numbers at cnbc.com/talking-numbers. i've been doing a few things for a while that i really love-- tdd#: 1-800-345-2550 playing this and trading. tdd#: 1-800-345-2550 and the better i am at them, the more i enjoy them. tdd#: 1-800-345-2550 so i'm always looking to take them up a notch or two. tdd#: 1-800-345-2550 and schwab really helps me step up my trading. tdd#: 1-800-345-2550 they've now put their most powerful platform, tdd#: 1-800-345-2550 streetsmart edge, in the cloud. tdd#: 1-800-345-2550 so i can use it on the web, where i trade from tdd#: 1-800-345-2550 most of the time. tdd#: 1-800-345-2550

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buckle up. buckle those seat belts. investors ready for another barrage. >> josh lipton previewing all of the big names set to report. josh? >> yeah, bill. big names reporting after the bell. quick preview. amazon. looking for 5 sent on revenue of 15.7 billion representing year over year growth of 23% on the top line. b. riley saying amazon is a buy. strong gross margins. expenses are slowing.

their price target is 341. starbucks, here eps of 53 cents on revenue of 3.7 billion. year offer year growth of 24% respectively. piper jaffray says starbucks is well positioned for success. talk about proven brand equity. price target is 72. zynga with a also of 4 cents on revenue of 183 million. that stock up today, up some 50% now this year but not huge fans have a hold rating here. talking about the recent mixed performance of some of its new games. finally, newmont mining. analyst expect 42 cents on revenue. guys, back to you. >> josh, thank you. that's a mouthful. we have a lot to get to after the bell. as we close the dow, virtually unchanged right now. just waiting for all those earnings to come up. >> all that action and not so

far from where it began today. up next, mike holland says buy back into this market today because we are heading, dow 20,000 within the next two years. his call up next. 15,500 now. >> plus, could any stimulus tapering by the fed, no matter how small, have the same impact on this market as interest rates go higher. ♪ [ woman ] destination assist. this is ann. where would you like to go tonight?

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oh, boy. it is going to be one of those segments. to the sell side, but not by much, about there are 300 million. >> the dow where the sellers are. >> dow up about 20% so far this year, maria. >> yeah, you can still get in on the market rally. he says, dow 20k could be in the next two years. dow, 20,000. >> can you say that? >> you said it. >> have you no sense whatsoever? you know, we've been around, the four of us, long enough to know that none of us can predict anything. >> did you say it? >> what i said is absolutely

20,000 is not heavy lifting from here. we are at 22% up over the last 12 months, is what i said. we are five years into a bull market and as you say, everyday, no one loves this market. one of the least loved bull markets of my lifetime, anyhow. dow is 13 1/2 times nextier's earnings. 5 to 10% earnings improvement. 1 or 2 multiple point on the dow. that's 20,000. >> can we do that if the fed starts tapering though? rates start rising and providing competition? >> that's one of the reasons. perfect question. one of the reasons i think it is not unlikely to happen. i'm not going to predict it. the reason is ben bernanke and janet young and larry, why would they waste five years with all of the heavy lifting they've done for stocks up and housing market up and try to get rates up.

i think they will continue for two or three more years. >> we don't have rates moving up significantly until 2014, bob by sanny. we are already seeing a better earnings period than you expected. >> let's hope a rise in rates won't hold stock market rates. three days of stock markets have had trouble here. we have struggled everyday the last three days. houlton and dr horton add hard ti time. >> that's a big shop. >> i don't think long-term it will matter, but short term it does matter. >> it is entirely possible this could happen. i think it is because over the nextier or two, we don't get the lax one.

we have a lost decade, as you report everyday, of people who report all these bad things happen. recession, dot com bomom, housig bubble. it is just a little bit of less negative. >> do you go with those growth oriented cyclic els? do you go with the defensive plpl plays? >> what we are talking about, bill, and it is -- the defensive stuff is very pricey relative to the ones you just talked about. j.p. morgan, intel, lock at their veilation versus the rest of lifetime valuation, and their current returns, current yields, they are crazy cheap. >> what about the rest of the world though? we are seeing merging markets. now there are signs europe is stabilizing. is there any possibility that

small caps are historic highs here. >> by low, sell high. don't forget that. >> seriously though. is it maybe time to go in a little bit more into europe and emerging markets? if you believe in the idea. >> it is a global thing. i think from listening to companies, bob. as europe bottomed out. that's what we are told. >> emerging markets. >> now china is an interesting question. but brazil, i think merging markets are to cheap, they are incorporating all this negative stuff we are talking about. japan is a wonderful to the upside. i don't think it is doing the damage people thought. >> mr. guru, thank you. >> what a fine suit that is. >> great taste. >> don't look better than me. >> where were we going? >> oh, yes, closing countdown after this brief commercial break. >> then amazon, moments away from reporting earnings. we will get the results from

starbucks and zynga as well. all of the numbers coming out. you're watching the "closing bell." stay with us. i'm a careful investor. when you do what i do, you think about risk. i don't like the ups and downs of the market, but i can't just sit on my cash. i want to be prepared for the long haul. ishares minimum volatility etfs. investments designed for a smoother ride. find out why 9 out of 10 large professional investors choose ishares for their etfs. ishares by blackrock. call 1-800-ishares for a prospectus, which includes investment objectives, risks, charges and expenses.

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southern district's press conference today. jonathan, spokesperson, says quote as u.s. attorney stated the government's action today does not attempt to freeze any of sac's assets. we have been advised by the u.s. tern's office that their action is not intended to affect the ongoing operations of sac's business, prevent redemption or impact the interest of any of sac's count are parties. we anticipate that we in the u.s. attorney's office will agree to a protective order to protect all parties legitimate interest but will expressly permit sac to continue its operations in the ordinary course. sac is still in business at least until we get more news about where this case is going. bill, we will send it back to you. >> you know, the feeling very quickly is that fear on the new york stock exchange floor is the great role that sac plays in terms of volume. the amount of trading they do here. they will be able to continue to trade in the meantime. that the whole point, right? >> that is. and preet bharara said as much

in the press conference today. he said it was not to shut things down, just to look at the past decade. >> the dow and s&p up. stay tuned for many more earnings reports. including amazon. we will watch that one carefully. in the second hour of the "closing bell." see you tomorrow. >> and it is 4:00 on wall street. do you know where your money is? hi, everybody. i'm maria on the floor of the new york stock exchange. s&p 500 narrowly avoiding a three-day losing streak. take a look how we're finishing today as money moves in stocks in the final hour of trading. final 15 minutes of trading. jumping up about 15 point at 15,554. nasdaq up strong. facebook a big reason for that. up better than 30% on facebook today. 3605 and nasdaq fish