>> yes. >> i dressed to match this car. >> you have the driving skills, but i have the key. >> yeah, but i -- >> you win. >> we obeyed all speed limb pipts. >> posted or unposted. >> yeah. 40 miles an hour. >> add good day on wall street. even better day out here now that we've had john in this beautiful car with us. "closing bell" starts right now. hi, everybody. back to the record books we go. once again, we are in rally mode. record territory for the dow and s&p. >> i'm bill griffith. it'll be hard to come up with enough is ysuperlatives. since yesterday we've had positive numbers on manufacturing. the jobless claims number was lower than expected, which is a good thing.

and all of the major averages are doing very well today. the dow and s&p are in record territory. have you seen the transports? even though oil is up sharply today? transports up 3.4%. also in record territory. >> big recovery there. transports are recovering. technicians want to see the dow move up together. also big interviews after the bell tonight. we have clorox ceo here. both here tauming about earnings and the economy. we will also ask about a new report that the ratings industries are loosening standards again. that reaction, stay with us. >> takes a look at sfly. it is a pretty picture. you got that? >> got it. got it. >> stock soaring on news that it actually lost money but not nearly as much as the street had

expected. so it is off to the races for shutterfly today and its ceo will be here in a few minutes. we will talk about how you make money in that growing part of this business. >> so shall we check where we stand right now going into this final hour? here are the numberes. dow jones industrial average up 127 points. almost 1% of the closing high. all-time high. 15,567. so anywhere above here, above obviously 567 is all-time high material. record high for the dow. check s&p 500 and nasdaq here. we have money moving into tech once again. nasdaq up. this is hanging around around the 13-year high on the nasdaq of 36.61. gain of 1 1/4 percent. all time closing high. 16.95 and change. we are above 1700. amazing rally once again. and we will have a lot more on the markets coming up. but first, breaking news from

motorola. just unveiled its first phone jointly developed with parent company google. john fort with motorola, over to you, john. >> moto x is always listening. >> navigating to golden gate bridge. >> reporter: it accomplishes that by packing a lot of smarts into a small frame. there are eight processors in moto x, two 1 giga hz. one handles voices and another handle essenceors. a company near fort worth will build moto x. >> so 70% of the operation is happening in the u.s. what that means is, it comes from china, korea all over. >> ordering phones and getting them delivered within a week, i'm here with the ceo of

motorola, google's wholly owned division, dennis woodside is here. first live interview as ceo. let's talk about this. this is an important phone but d apple are dominant.ent where they spend hundreds of millions of dollars a year on marketing that appears to be table stakes to really gain share in the market. many others can't do it. is google going to give you marketing dollars necessary to make this a success? >> thanks, john. first of all, success in this market requires an awesome product. you don't need to touch the phone to make a call or navigate and you can imagine when you are in the car, it is dangerous to touch your phone. you won't need to do that any more. it all starts with the product but of course we will market the product as well. we have to be scrappy, we're the challenger. >> so as you push this out in the market, are you going to have enough is you ploy to meet q4 demand?

you are launching ahead of q4. doing assembly for the first time, might you be constrained? >> ramping up a factory, that was literally empty 12 months ago. hiring close to 2,000 people already. with all of the machinery in there. making the device right now. we are ramping as quickly as we can to get the product into market and meet the demand. >> 199 is the business price, i understand the launch window is from late august it early september. the colors customizable would be available on at&t. why not do the colors with everybody off the top? >> one thing that we think is really cool, typically, as long as it is black and white, and what we think we can do enabling the phone to be customized. you can order in teek, ebony, and wood is really hot right now. >> big screen phones are in. you decided not to go big.

you argue this is the right size for most people's hands. have you touchless voice command level that nobody else has got. what is motorola going to be about to move forward? >> one of the things we think important is power management and managing the phone so it can do these things throughout the entire day. one of the processes that you mentioned is always processing information, coming off the sensors. but using really little power. so sipping power. so with the flick of my wrist i can open the camera. because that processor is always working for me. i can speak to the phone. it will respond. even when the phone screen is off. the phone is always listening for my command. >> even with those functions, i should get twice the life on this as i do my iphone 5. you say you have lower end phones coming later in the year it addressee merging markets. how many of these features will be in those phones as well? >> so we think the value segment is a huge opportunity. interest there is about $1.3

billion. the potential mark set all 7 billion people on the planet. >> also, with the moto x -- >> well move more and more of that technology and devices that have some elements of what you see here, so stay tuned. >> thanks for coming first on cnbc, dennis. quite a launch here. eric schmidt was here as well. we will see what reception is. it really matters. sales, if we get those jobs in the ft. worth facility, all those things, they got to sell this thing. we will see how it comes off. guys, back to you. >> they are off to a good start. back to the markets, bull rally gaining even more momentum. bob pisani, you look everywhere. we have all kind of benchmarks being set. >> we do. twice the battery life of an iphone, i will watch that carefully. that will attract a lot of people. let's look at the dow. we are sitting right near the highs for the day. not quite at highs for the day.

we would be right there if it went for exxonmobil. here is what is motivating people. that this is the most important data point for the beginning of the secondhand. it has ism none numbers of perhaps rebound. china, u.s., ecb says interest rates will be low for a long time. question is interest rates. what is happening? put up the next screen here. adb pet bet are than expected. markets held up overall. ism came out bet are than expected. rates came up. markets held up. now the big question is the jobs report for tomorrow. maybe better than expected. will rates go up and stocks go up? bill, if that happens then the market will be convinced it can handle higher interest rates over all. what is dragging things down is exxon oil. i will make it simple for you guys, big oil is having trouble growing. they can't find enough oil. even though natural gas is plentiful, it is the same

problem. royal dutch has the same issue. i will explain what happens in about 30 minutes from now. >> we are looking at charts of exxonmobil and royal dutch shell in today's talking numbers. with less than an hour left, the dow and s&p looking to close at all-time highs, let's break down today's numberes with rob morgan. we have john stoltz joining us from the big board and mike from yahoo! finances. a two-year high at 2.72%, you think that's okay with the federal reserve? >> i do think it is okay. i think it is the velocity that matters. they don't want it leave the impression they lost control of the curve all together. i think it makes a lot of sense to kind of, those holders, treasuries, getting nervous ahead of tomorrow's number. so i think this zone is okay for the stock market as well. i don't think one way or another it is a boy at the levels but at this level it is fine. >> john, you've been recommending u.s. companies that

pay dividends. that obviously are growing. cyclical games in plr particular. is that still the play? >> still the play. we still believe we are in recovery process. we think this is a new water shed number. but yet it will likely be tested as a contrarian, my immediate thought is here, when are they going to take profits? what i would expect is profit taking is likely around the corner after we -- if we can close here at 1700. i think then, then we can move higher from here. it is obvious the bond market continues overpriced testing for new levels. and the federal reserve, we think is likely to raise rates towards the end of the year rather than in september. >> let's talk about that, rob morgan. in the rally we see lately, including today, is this about fundamentals in the economy or is this about their view of when the fed plans to start taper

awning quantitative easing? >> i think this is about fundamentals. when fed chair bernanke on june 19th first brooched the topic of tapering, the dow is down the next day. that's the biggest drop on the year. but two weeks ago in front of congress for two days we talked about it incessantly and we started pushing up against record highs. so i think that that has been for the most part i do jested. i think it'll happen at some point and i think the funding or to answer your question, it is a fundamentally driven market. >> guys, when do valuations begin to matter or become a concern? can we just keep rallying going into the beginning of tapering? you said, john, you think the end of the year. >> yeah. p. >> does this continue until the end of the year? what concerns you on valuation? >> maria, i would probably get concerned if we run into multiples of around 19 times. >> 14, 15 right now? >> right now, about 16 and

change. we operate on a trailing 12. so we can always consider what consensus wants to say earnings will be come in. we look at the trailing at 19. i'm not saying by the end of the year. that's kind of our point where we would get concerned about valuation to revisit. that said, what we have is migration back into equities. after six years, overdoing it in the bond market. it is time for equities and baby boomer generation, needs stocks that can pay dividend, grow dividends and offer capital appreciation. this may be a water shed. >> i was saying yesterday, it is becoming harder an harder for value investors to invest. and you need a growth investor to like this market because it is about growth. >> when do you think the feds will taper? they keep saying it depends on the economic date why and lately the economic data is getting

better. >> i don't argue with the consensus of septemberthe the risk -- they have a lot of lee way because inflation is so low. that's one element they touched on the statement yesterday. so to me the fed is not necessarily the swing factor. i know it would be a very good excuse for the market to have anxiety in there. i think there's nothing cheap in this market except for the real ugly, ugly stuff that nobody wants. like coal stocks and emerging market stocks. russell 2,000 is at your 19 times trailing earnings right now. i think small caps are very expensive. we are paying for fundamentals that built up over three years. people are recognizing fundamentals are improving and it is how far that recognition phase is and the overshoot to the upside. i don't really know. >> i don't know if anyone wants emerging stocks, by the way. >> was it larry yesterday? >> larry said he is starting to chip in. because of valuations. would you buy merging markets

here? >> yes. we would begin to buy emerging markets. we wouldn't back up the truck, but we would be selective and work on allocation process, and within the emerging market class and also buy ifa because we think the developed markets are the first ones to lead, the developed markets, u.s. and canada, europe, japan is on line with abe's work. and very positive picture painted here. not without potential near term potentials but the glass is half full. >> well, with the glass half full, depends on whether you are drinking or pouring. heading towards the close, 45 minutes left on the trade day. looks like record highs with the close. with dow up 123 point right now. >> when you think of shutterfly, do you think of billionaire

investor? doesn't necessarily go hand in hand, right? turns out, that's one of his top performing investors. up 97% year to date. >> not bad. >> we will talk with jeffrey housenbold. find out how he plans to fight off competition that's closing in on shutterfly. >> very '90s to see that stock with that profitability. and we will talk with robert benmosche. we are still to come on "closing bell." [ kitt ] you know what's impressive?

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to close at high he today.

josh lipton, over to you. >> tracking big name movers, winners include pioneer national resources. exploration and production company swinging into second quarter profit. chesapeake energy another winner. better than expected quarterly profit. producing more crude oil than forecasted. and how about facebook. that stock up 40% since reported earnings. trading just below $38 offering price right now. on the down side, new york times, eps, beats estimate but revenue slips and missed what street wanted to see. exxon another one in the red. though now off session lows. posted fall and quarterly profit oil and glass output production. we will end on shutterfly. revenue beat, the street reacts. all raising their price targets. that stock up today, up near

100% so far this year. maria, back to you. >> thank you so much, josh. we want to find out how shutterfly is capturing the market share and will the momentum keep going? >> jeffrey housenbold, ceo, good to see you today. >> thanks for having me, bill. >> obviously, gaining market share. >> we've been profitable since 2003 but the seasonality of our business, we are typically break even to slight loss in the first three quarters of theier year and we make most of our profit in the fourth quarter. we had record revenues and profit and record revenues for 50 consecutive quarters. >> when does the growth come for the next stint? >> the stock at an all-time high today. we are watching the market like your story. but there are some out there who are worried about the under

penetration of the mobile side. mobility is the big story of the moment. what about mobility? >> we have extended our market share to 56 to 59% in the market and we are making significant investments about 50% of all of our r & d dollars are in mobile. we just launched a new ipad app for shutterfly. we have an iphone app for shutterfly. and we are launching several during bile initiatives the quarter, including our new enhanced cloud service. >> so is that the growth strategy? how do you grow this? >> i was thinking about that this morning. everyone is taking pictures these days. we are all photographers now that we have our cell phones that take -- >> and they are good pictures. >> and the quality gets better and better all the time. you have to put them somewhere and shutterfly is the place to do that. so how do you grow the company and make money at the same time?

>> you know, the part that gets us excite said that 90% of this 30 plus billion dollar market is still occurring off line and traditional retail. as the market leading on-line player who is helping people make their -- turn their pictures into extraordinary and personalized gifts, we think that migration from off line to on line will benefit is. but we are helping consumers reduce friction points. our new enhanced cloud service will be able to grab your pictures regardless if they are on flicker or drop box or face boom or shutterfly and it automatically goes into the cloud. if you take a picture on your mobile phone, it land on servers and we have 20 billion customers' precious memories. we can use proprietary technology. >> what would be an appropriate growth rate for your company in the coming five years? what should the market expect? >> we haven't given long-term growth model to wall street. but we grew in the most recent

quarter, 35%. and so we have been averaging above 30% growth for several quarters. and we just upped our full year guidance to the midpoint of $779 million with 18 to 19% margins. so we will have record revenue and free cash flow this year. >> if i'm google or yahoo! or microsoft or any of the technology giant out there, i'm licking my chops. i'm saying i must have shutterfly. it is -- that is the business model for the future. the diversification that comes in technology these days and photographs would be one key of all of that. don't you think you're a perfect candidate for acquisitions? have you spoken to anybody? could you be for sale at the right price? >> you know, we've been focused on building a largent prize that stand alone and independent for our customers. but as an independent company we

have to acquire customers one at a time. so we partner with folks like yahoo! microsoft, best buy and david's bridal and target, where they help us get customers. we can be an independent company down the road. but as a public company, if the along, fer came ertainly the board would consider that. but our focus is really about building a large stand-alone company. >> we will leave it there. good to have you on the program. we've been watching the success. thanks for joining us. >> thanks, maria. >> see you soon. >> heading towards the close. 35 minutes left on trading session. we are losing altitude. the bias is the buy side. but that's softening a bit as we good here. we are up 105 point on the dow jones so far still if record territory. >> that's where the weakness is in this market, check it out, exxon right now, down 1.5%. royal dutch shell down almost 6%. getting hit hard. up next, we will find out if

shell sell off is an opportunity to buy either of these names. back with that. >> also, financial stocks are a major catalyst of this rally on the other side. later, noted banking analyst anton schutz says he has two bank stocks that are still cheap in that category and you should own them now. those names coming up. with fidelity's options platform, we've completely integrated every step of the process, making it easier to try filters and strategies... to get a list of equity options... evaluate them with our p&l calculator... and execute faster with our more intuitive trade ticket. i'm greg stevens, and i helped create fidelity's options platform. it's one more innovative reason serious investors are choosing fidelity. now get 200 free trades

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verdict is to be read shortly. there is a verdict in the fraud case of fabrice tourre. >> thanks. >> in reverse, this time gas giants taking a hit. exxonmobil and royal dutch shell, both companies earnings falling short of street estimates. exxon is among the worse of the dow today. that stock is down on a day we are up. is the sell-off an opportunity to buy either of these stocks, let's talk about in talking numbers.

rich, how about the charts in exxon versus royal dutch shell. who do you think? >> a pretty simple formula for success. rise early, work hard. strike oil. let's bring up the chart of exxonmobil and i will show you how to do just that. you see the stock had been trading in a side ways trading range, very well defined for much of the past year. we transition no a bullish trend channel which takes us out of that trading range. now yes we run into resistance up around 9550. critical support around $92. this stock is a gift. i think it trades a hundred by year end. i'm a big buyer on the earnings disappointsment and pull back. >> you like exxon. what about you? >> yes. the problem for exxon versus royal dutch or even the other oil majors is you look at a valuation basis, it doesn't look attractive. its earnings growth is less than

5%. paying about 2.7% dividend. royal dutch, terrible execution in terms of business. that's why it is down so much today but it is an 8 pe name and it is paying 5.5% in terms of dividends. even conico is paying with better growth prospect. so i think exxon is the premier name but overvalued relative to the space. >> okay. so you don't like that. what about that, rich? >> valuation is a game of which i'm not familiar. but i can tell you this, we are in a strong bull market with significant upside. you want to buy break outs, all-time highs, that's the trade that's working. when exxon pushes out through 95.50, you can buy it for that upside. i think that's what is going to p play out here. >> enis, look at the price of oil. 107, $108. we are at all-time highs for these markets.

economy is growing and exxon is losing money. doesn't get any bet are than this right now. we have to go at this point. but thank you for your thoughts on those two companies. back to scott. what do you have? >> fabrice tourre has been found gilly. this is from the abicuss debt organization. the jury finds investors chosen securities in that cdo, with the idea of shorting them. investors believe paulson was a long investor. again, jury finding ptourre guilty on six of the seven fraud counts against him. mary thompson is in the courtroom. she should be out shortly with the color on this and exactly what counts were and what was the one count he was found not

liable for. and also, what the penalty is that he will now face. because again, we should point out that this is a civil fraud case. it is a big victory for the security and exchange commission which was trying here to demonstrate that it is on top of the events of the financial crisis in 2008. and this is really the first fraud case that directly is linked to it from the sec. main time, tourre went into the trial saying he was here to tell the truth and clear his name during three days of testimony. the jury got the case on wednesday. so lookes like they deliberated for a little bit more than a day. er with continuing to gather information from here and expect to have mary thompson in front of the camera as well. >> back to you. >> scott, give us some of the ramifications here. because it is a civil suit, this is a final penalty that is going -- that he is going to be faced with. what are other ramifications here that he is found libel for

defrauding investors? >> there is financial issues and what his future will be in the securities industry. and i suspect we will get the penalty phase now beyond this. but it is also -- there are also implications beyond this case. as i said, kind of a marker for the sec. which had been criticized by some for not being tough enough on crimes of the financial crisis. we have seen so much in the way of insider trading cases and all of the other prosecutions ponzi schemes and the like. but this really related directly to the instruments that were at the heart of the financial crisis. this is a synthetic collateralized debt obligation. in other words, betting on the future of the mortgage market without holding the actual mortgages. and according to sec's case, which the jury has now largely uphold, it was -- investors were deceived about who was behind this. who is investing in this. and the fact that john paulson, the big investor and clearly

helped select these securities, was in fact planning to short them when people were still at the time in 2006, 2007 -- 2007 looking at the housing market as something that had more legs to it. >> all right, scott, thank you. we have mary thompson now. she has come out of courthouse to give us more details, more color of what happened inside there, mary. >> i tell you, it was a fairly rather shocked response to the verdict. the defense was feeling very confident. but again this is a very big victory for the sec. again the jury finding tourre liable on six count. the only count he wasn't liable on is making mysterious material omissions with regards to various marketing materials to be made to aca. which is one of the short or i should say long investors. but this long investors, in the ceo called abicuss in which they

lost several hundred million dollars. there was a claim that mr. tourre, a 34-year-old doctoral candidate at university of chicago, mislead investors in marketing the synthetic ceo called abicus. most notably john paulson's hedge fund not only helped select the reference mortgages for this portfolio but also he didn't correct an assumption by some of the investors that he was only short the portfolio. there was some who assume that mr. paulson's hedge funded also taken a long position. so again, this is a significant victory for sec. keep in mind the agency is only brought three cases to trial. one of them concerning a citigroup executive. that citigroup executive found not guilty. the other was a split basically decision regarding the prime reserve fund. money market fund that broke the bank during financial crisis.

so again this being a victory for sec in what it pursued in the wake of the financial crisis. again, tourre, 34-year-old doctoral candidate at university of chicago. back to you. >> thank you very much. now former sec council for the enforcement division. tom, good to have you on the program. first, give us your thoughts about this verdict. >> thank you for having me. this is a significant verdict for the sec. this is one of their largest market price cases. and up until now they have add very checkered track record in major litigation. winning this case was a must for the sec. they had to win there and they went out and did that. as i said, a very significant victory for them. >> this really gets to the heart of what caused the financial

crisis that we all went through. what was in those cdos? did people actually know what they were buying? were they misrepresented? i mean, what was it the sec had to argue to get these -- to get the ruling that they got today and do you expect more cases to be brought now as a result of this ruling? >> what was really critical about this particular case was at the center, the sec alleged there was a huge conflict of interest that wasn't disclosed. they alleged that on the one hand, goldman addhad a client t wanted to short the particular ceo and wanted it to collapse. it is not unusual they would have a client on one side and then have client on the other. what is unusual here, is the sec claims goldman didn't tell everybody what was going on. if you don't know what is going on, you can't make a good investment. that's the critical issue here.

did they disclose the conflict of interest, the jury's verdict says, no they didn't. >> but it is interesting, also a big point that goldman sachs separately settled this matter without admitting wrongdoing. here you've fwot got tourre saying, look, i was doing my job. i never intentionally mislead investors. so what was it -- what was the critical part that really moved the needle for the jury? >> i think that the real critical part here is what the asset manager in the middle that brought in was told and my understanding is that the testimony there was they didn't really know about the conflict. the fact of the goldman settlement, remember, goldman settled under an sec policy that said they didn't have to admit or deny. they did say they made an error. which was very unusual at the time of the policy and they paid a record settlement at the time to resolve this case.

this is not a good day for goldman tp it is a good day fs for sec. >> i don't want to say open the flood gates, but will we see more cases now that the sec was successful with this one? >> i think what you will see is sec will be more aggressive under mary joe weiss. they will require some kind of admissions. they have a new financial task force to aggressively go after financial fraud. i think you will see them moving past the market crisis cases like this one. and take a very aggressive position in the marketplace. and this win today, it says that they can do that. >> all right, mary thompson, we

have more from you. good ahead. >> again as we have been talking about it, this is a significant victory for the sec. at this point they are bringing additional cases concerning the financial crisis given that it has been five years hence in the civil case you can still look for any fines to be paid or penalties. what you can't seek after that five-year period is a live time ban. of course what is up next is we will see what the sec asks as far as punishment for mr. tourre. it is likely they will ask for lifetime ban from the securities industry. given again that he has been found liable on six of the seven counts. but that will be down the road. again a very big victory for the sec today. and again, i would say some -- a bit of disbelief in the courtroom as well. >> all right. mary, thank you. we've got more breaking news now from scott, a statement from the sec. scott, what do you have? >> right. we have been talking about how important this is maria for the sec.

this is a statement from the co-director of enforcement division. we agratified mr. tourre has found guilty of fraud. those who commit fraud on wall street as shown by this verdict. we proved mr. tourre put together a complicated product designed to maximize the likelihood it would fail and marketed and sold it to investors without appropriate disclosure. as we keep stressing, an important victory for the sec. and you wonder what would have happened had they lost this case. remember tourre first came it light in senate hearings before senator carl levin. the goldman sachs hearing. and goldman sachs settled for $550 million. but tourre was the face of this. the members of congress and sec came down hard on. as can you see, found liable in six of the seven counts.

>> thanks very much. what a developing story. well continue covering this with all angleed. >> one of the criticism was that nobody had been brought it trial for the financial crisis. >> right. >> and it is starting to happen now. >> and that's the point. sec has wanted to be more aggressive. bu because they want to show the world, we are the cops on the beat. and we will get the guys, the bad guys down. all right. in the meanwhile, we we have a record rally on wall street. if we close here in 15 minutes, we will close at another all-time high. >> by the way, s&p above 17 hundred for the first time ever. so will this day end in record territory? we go back to the floor for what is happening realtime a right after this. of thousands of dols in hidden fees on their 401(k)s?! go to e-trade and roll over your old 401(k)s to a new e-trade retirement account. none of them charge annual fees and all of them offer low cost investments. e-trade. less for us. more for you.

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welcome back. we have been bringing you breaking news that tourre he has been found guilty. >> as a firm we remain focused on being more transparent, accountable aechb responsive to the needs of our clients. that's goldman sachs's short and

sweet statement. remember gary cohen was on cnbc yesterday talking to kate kelly. while he didn't put everything behind fabrice tourre, he said he expected tourre to be found not guilty. but the jury found tourre guilty of six of seven charges. >> the question we have been talking during the commercial break here, why would they let goldman settle, the sec, if they felt they had a strong enough case in obviously they did. where they were successful in this particular case against tourre, then why allow the company itself to settle at the same time? >> i don't know if it was that clear cut at the time. i think and this is the whole debate that's been going on and that has been setting it off. the whole debate about allowing companies to settle without admit org denying. this spares them a trial. gets them a settlement. gets a large amount of money in terms of sec settlements, half

billion dollars. >> i don't know if you know the answer to this, scott, but if goldman settles, why is an individual still exposed to legal proceedings? wouldn't they be indemnified? >> goldman settled as a firm but tourre was charged individually. he decided to tell the truth and clear his name. and that didn't quite work out. >> amazing. thanks, scott. >> all right, we will take a short break and continue following this market. but we are looking at money moving into equities in a big way. record uncharted territory. up on the dow industrial. with 10 minutes before the close. >> next two markets, big opportunities in one underperforming sector as we wined down this day. we will find out what it is, straight ahead. >> get ready for an earning aig, linkedin and all of those numbers coming up.

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dow up is 135 points. about a billion dollars to buy. apparently there is a big multibillion dollar etf rebalancing going on where folks are selling treasuries and buying mid cap etfs. >> that may explain why the ten-year went it a two-year high. we are seeing the stock market go higher any way. our next guests say there are still sectors underperforming. chris, jeremy hill, good to see you both. thanks for joining us today. >> thanks for having us. >> that's the question. do you go with growth? go with what is lead org bargains and underperformers? >> i think we are looking at a lot of technology into the back of the whier. we see better comps after disappointing numbers last year. so we see product cycles.

and so we are very optimistic on the back end of the year. >> is there any reason to believe we are going to see a sizeable sell-off any time soon? what are the alternatives? >> there is no alternative to stocks. we feel in the long-term, i wouldn't be surprised if there was pull back in august. it is going to be lower volumes during the end of the summer. people on vacation. >> that makes sense. >> but long-term or both. >> jeremy, what are do youing right now? >> we agree. we think technology is a great place to be right now. it is not underperforming per se year to date. we look at the nasdaq 100, compared to russell 2000. certainly there is will have u there. we also think some of the regional banks are probably a way to play higher rates. we also think probably housing sector could be the one sector that takes a little bit of a breather. >> because rates are going up? >> because rates are going up. absolutely right. >> i think you make a good point. i thought it was interesting this morning when we had terry

duffey on with rick santelli. they looked at the ten-year chart versus the cme chart. my question to you are what are the plays that will work as rates move higher? >> again we think technology. they are unlevered balanced sheets with a lot of cash. they won't be imapacted with refinancing lists. we think they are good returns. >> does that take pressure off people that want to buy the dividend payers out there? if yields start backing up right here. there is less need to buy a stock that pays -- >> that's right. a counter intuitive thought. in the sense that some of the dividends stocks are actually more fairly valued than the bonds that they issue right now. because bonds have come off in price and therefore more attractive now. that something we with lock at as well. especially in blue chips. >> all right. thank you very much. >> thank you both.

>> appreciate your time today. >> we are heading towards the close. we have the closing countdown. looks like records to tell but. >> yeah and aig, one of the big names. robert benmosche my guest. we will break down the numbers and talk a lot more about the forthcoming with bob benmosche coming up. one that's 80% smaller. uses 89% less energy. and costs 77% less. it's called hp moonshot. and it's giving the internet the room it needs to grow. this ...is going to be big. it's time to build a better enterprise. together.

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okay, 3 1/2 minutes left in the trading day and it looks like we will have record close he here again. >> all time dow, all time s&p. >> usually happens first of the month. show you what is happening here. starts on the open as the dow jones industrial average. at the high of the day, yeah, 151. going up a record high of 15,617. off to the races. side ways. getting stronger as we head toward the close. one other, transportation average very strong. even though prices are higher. look at transports, up 3.25% today. i know you've been skeptical of the gains here, but we continue higher. >> you have to bring that up, don't you? >> well, i mean -- >> thank you for that. >> i'm not picking on. >> you i know. >> you are a veteran trader.

and have you a season profit taking here, and we just haven't seen it. >> we are seeing everyone say that market is going higher. i haven't gotten to that point but you bring up the dow transport, that's a great index. but it changed. there is less airlines. as for as percentage moves, that's a huge move. 3% of the dow. 5,000 just one year ago. >> what were the groups, did you see, that you saw -- >> you see financials are strong. i see technology is one thing it lock at and linkedin after the close today. we see facebook. it is not microsoft and intel leading us higher. it is the finally facebook, the one we've all been waiting for. if linkedin can continue that, maybe another push towards other laggers in the technology field. >> all right, get ready for bob benmosche in the next hour. see you tomorrow. >> have a good evening. what are you guys expecting for

the job number tomorrow? >> i i think the whisper number is above 200,000 -- >> the magic number, 200,000. >> right. if we taper, the fed will be sooner and the bulls will take that and run. below 175,000, the bulls may say, you know, the fed will be around a little bit longer. somewhere in between, who knows. the risk on trade may be here and maybe people will continue to ride. >> they can rationalize it either way to go higher. >> either way bulls are in control. >> are you going to buy these, even with these rallies here, are you going to hold fast we will see profit taking at some point? >> we definitely have to see profit taking. there's a lot of money waiting to be entered if we get a pull back of 5, 10%. that would be so healthy. this top right now, very aggressive. in my mind, if you see pull back, are they sellers, weak hands, that's what we have to find in the future. >> thanks very much. appreciate insights in this

market. we are going out at record highs for dow and the s&p and the trans ports. pick your favorite index right now. nasdaq at 13-year high. stay tuned, earnings, and aig. with ceo bob benmosche. coming up with maria on the second hour of "closing bell." see you tomorrow. and it is 4:00 on wall street. do you know where your money is? hi everybody, welcome back to the "closing bell." a big rally to kick off the day. new record highs tonight. take a lock at how we are finishing this record day on the street. up 125 points. new all-time high for the dow. 15,625. picked up a bit at the end of the day. nasdaq up about 50 point today. 1 1/3 points higher. about 13-year high