>> i can't wait for women's wear version. thank you for coming over. >> good luck. hey, everybody, beautiful friday in new jersey. hope it's great where you are. >> stay safe. see on you monday. "closing bell" is next. >> we enter the final stretch for the week. i'm marie bartiromo at the new york stock exchange. closing out one of the best week of the year. >> best week of the dow since january. i'm scott wapner. here's what's coming up on today's big show. all of this ahead of the big fed meeting next week. the market right now, well, pretty good week. as i said, best week for the dow since january. it's been an unexpected run. many not seeing september getting off to this kind of start. >> we have the two-day meeting next week from the federal reserve, 17th and 18th. all the debate is going to ramp up, going into that meeting.

will they begin the taper or not? >> the taper, word of the week. the word of the week as we continue to talk about it as it looms. >> the market seems to have its own message here. up 70 point. two big exclusive points coming up for you. michael dell, off a big victory to take his company private. he'll talk to me about what's next for the company. if he's planning a dell mobile phone. if his long term plans to take dell public are on the horizon, once again, after taking the company private. jim grant, want to get his take on the two-day fed meeting. we'll ask him what he think ben bernanke will do next week and his thoughts on larry summers to be the next chairman of the federal reserve. you don't want to miss either of those interviews coming up on "closing bell." >> how about this for a hash tag, feesy frien feeding frenzy. could a successful public

offering for twitter restore confidence in a generation that inherently distrusting the stock market. we thought that would be facebook. didn't happen 37 will it happen with twitter? >> i didn't expect it would happen this soon they would file the s-1 with the s.e.c. dow jones industrial average up 70 point, close to the high of the day, which occurred around noontime, 12:30 or so. 15,371. check the nasdaq. also seeing gains there. fractional. limited gains for the nasdaq, even though tech has been one of the better performing sectors this year. up 5.75 quartthe s&p 500, ant t high but close to it on the standard & poor's. friday 13th turning out to be a lucky day for the bulls as we wrap up what's been a strong week of gains. bob pisani, what can you tell us?

>> important thing is 2% week. everything is up 2%. all the major indices are up about 2%. normally put up the s&p 500, i'm happy when this happens. i'm a little worried now. i'm worried about -- because we're 1% from historic high, 20 points, 1709. that's the old high on the s&p 500. look at all the things out there in the next few weeks. everyone thinks syria has gone aw away. but i think the fed tapering is an issue. 10 billion is what everyone is expecting. i don't think 20 billion is in. we have continuing spending resolution. we have less -- maybe two weeks to produce a continuing spending resolution. the house republicans want restrictions on obama care. that seems to be a mess right now. we have a debt ceiling hike coming up. this is a recipe for a lot of volatility. if you look at the vix, me worry? not far from the lows of the year. the s&p 1% of the highs for the

year. vix to the lows. a lot of risk to the downside, a lot of complacency given what's coming up in the next few weeks. >> joining us is kyle harrington, rich peterson, s&p, ryan from investment research and rick santelli. gentleman, happy friday to you. thank you for joining us. rich, let me kick it off with you. are we a couple weeks away from the end of the quarter and we just got the last three months of the year? what are you expecting? what is it looking like in terms of fundamentals, the earnings picture? >> i think the market has shrugged off the taper tantrum over the past few weeks and now a september to remember, up 3% on the s&p 500. we never crossed 3% yield on the ten-year. we had strong m&a market. businessest corporate bond issue. twitter ipo, a lot of positives. >> a lot of news.

>> and a lot of volatility. i think the market is looking past that, looking toward third quarter earnings. come october i think we'll see modest growth and gains in maybe consumer discretionary health care technology. all in all, valuations seem reasonable and the market on higher ground. >> bob mentioned complacency. is there too much complacency in the marketplace as we've got off to this rocking start to september? >> it's good to see this start. summer's gone. labor day started. we're back in business. biotech and technology sectors, maria pointed out it's the best sector of the year. keep in mind, there is major news coming out next week with the feds. we have the syria issue that seems to be going into deliberations, so i think the market benefitted from that. but the key is, as bob pisani mentioned earlier, volatility is here to stay throughout the rest

of the year. be cautious of your portfolio on a weekly basis. >> how much of a disappointment will it be if the federal reserve comes out, ryan, on the 18th and says, yes, we are, in fact, officially beginning the tapering? is is it priced in? does the market sell off? what's the reactions if that's the news we get on wednesday? >> maria, i'll tell you what, we've been talking about tapering for a couple months. my personal take is that's already factored in. look at small caps. they've been leading in september. nasdaq is half percent from 13-year highs. price is the only thing that pays. we can talk about the news, the events. the price looks good. when you look at sentiment, we said optimism coming in. that's true. when you look at intelligence poll, 40% are looking for a correction. a month out it's been very bullish. to me, yeah, there's optimism. any and all pullbacks have this freak out. people panic on that. 5% corrections, we're seeing

fierce hike up. to me it's positive. september very well -- only two weeks ago, look for a surprise september rally. it can happen. i think it can still happen into september, end of september. >> what's much more important, what's going to happen next wednesday, september 18th at 2:30 when ben bernanke answers q&a. what about disappointing sales, lackluster? consumer confidence heading lower. the chairman has to address going into this period of possibly tapering. >> perfect segue to you, rick. we think the tapering is likely. it's the size that's unknown and the size matters. you made that argument this week. we don't really know what to expect. >> absolutely. it's not only the size, it's the sector. more mortgages, more treasuries? that's very key because i think it's very disruptive for the mortgage arena. consider this, one of the first guests said, you know, the market's looking past certain

issues. i think it looked past last week's unemployment data, weak retail sales. it didn't move a lot on today's weak numbers and weak confidence. it's down three or four basis points but still in tight closing range for the week. 289s for the tens. as much as everybody wants to think stocks can live in that world, i'm not sure if they've won woken up to the reality. fast forward three, four, five months, and there's going to be a whole lot less stimulus with regard to those buyback programs. i think the stock market just isn't there pricing it in correctly. >> i love this idea. how do you explain the ee another mois deal for verizon this week. blackrock, pimco, what do you

think? >> looking for those that are attractive, once in a lifetime opportunity to buy those prices and buy that quality. you know, i think with the -- all the m&a on the horizon, you know, the hilton ipo and others that will -- to fund their deals, i think spreads were very attractive for that offering. >> i was going to say, scott, one of the ways we identified yield seems obvious but we stuck to it and it worked out well. own securities with buyback programs that are reasonably valued with dividend yields. you get the dividend yield, you own a security you think is going to participate in the upside of the equity markets. that's the way we played it. we stayed away from fixed income markets. >> to rick's point, what the reaction in the he can wilt market is going to be, if they taper, if we have another quick and violent move in the bond market, what that will mean to

the rally. that's the great unknown. nobody knows. >> i'm in line with rick in the sense if they come in and taper, i think the equity markets will sell off. i don't think it's priced in at this time. >> i agree with you. there's still some hope they won't. i actually don't think they will. >> i don't either. >> i don't either. >> because i don't think the economic data is there to support it but it's not raising rates, we know that. we'll see. thank you, everybody. appreciate it. thanks so much, gentlemen. >> stocks may be soaring this week but gold has gotten crushed. sharon epperson at the nymex with details of the meltdown. >> we're looking at gold at a five-week low. though we're off the lows of the session, gold prices still just above that 1300 level, the key psychological level in the week ahead. this is the worst week we've seen for gold, for silver, too, since june. so, we are looking at a lot of traders focusing on what's going to happen next week, doing preemptive selling, expecting we

are going to hear something about tapering. therefore, we're looking at lower prices in both precious metals. back to you. >> thanks, sharon. we've got the final 50 minutes to trade here on wall street. we've got a market that's higher by about 62 points. not the highs, just shy of it. >> five years after the financial crisis, a new survey confirms that most americans still do not trust wall street. up next, we're going to discuss what it will take to change that as many former investors have missed the last 9,000 points on the dow. imagine that. 9,000 points. >> 9,000 points. also ahead later on -- why do you think emerging markets with the population growth and tremendous potential demands, why do you think that's a pc story when we know there are 6.6 million mobile phones on the planet and only 1 billion pcs? that's where the growth is, mobility. >> why doesn't michael dell plan to enter the mobile phone business?

don't miss much more of my exclusive interview coming up on "closing bell." michael dell joining us fresh off his victory to take his company private. mine was earned in djibouti, africa. 2004. vietnam in 1972. [ all ] fort benning, georgia in 1999. [ male announcer ] usaa auto insurance is often handed down from generation to generation. because it offers a superior level of protection and because usaa's commitment to serve military members,

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hard to believe but it's been five years since lehman brothers' collapse. chief washington correspondent john harwood has details. >> nor time nor a soaring stock market have healed those wounds. if you look at results from the nbc/wall street journal paul, can you see wall street is still in the nation ace dog house. when you ask people to rate positively or negatively, wall street firms, 14% have something good to say about wall street firms. 42% have a negative view. asked specifically about jpmorgan chase, one of the top players on wall street, same 14%, 32% negative. why would that be? one of the reasons is that most americans say they were hurt significantly by wall street and mortgage house crisis. 52% majority said they were effected. only slightly down during the

height of the crisis itself five years ago. now, the implications looking forward, we have congressional election in 2014. how do people feel about who is better on the economy? republicans have now moved to a slight edge over democrats. that's bounced around a bit. democrats have a large 17 percentage point edge on who's better for the middle class. that's one of the places the elections will be fought out. >> thank you. even as wall street commands little respect from main street, today we learn jpmorgan will spent $14 billion to prevent catastrophic mistake. many in washington lament wall street is still too big to fail. have we learned anything? >> joining us larry mcdonald, vice president at lehman and author of "a colossal failure of common sense: the inside story of the collapse of lehman brothers," dennis kelleher.

good to see everybody. thanks for joining us. dennis, what's your reaction to jpmorgan now allocating $4 billion and 5,000 employees to manage risks? >> well, you know, i would say it's long overdue. most of the dozen or so too big to fail banks on wall street should have done this years ago. the other thing that was fascinate being that story and shocking, i would say, is apparent -- reports jamie dimon they cannot overrule compliance and legal heads. why has it taken five years to prioritize ly prioritize legal risk and xlints for those that managed the p&l. they need to put people in places to avoid london-wales, a bank so big that it stretches around the world. it's not only too big to fail. it's too big to manage and too big to prosecute. >> you have to wonder what's

changed in the last five years. those who say banks are chockful of derivatives. sandy wile was on cnbc exclusively earlier this week and said there's no need for off-balance asset sheets. what's changed? >> that's the theme of my book and great for those coming up in the business field. capitalism clearly doesn't work without transparency. if you think of the '70s, '80s, '90s, you walk into a bank and you know what you're dealing with. when you walk into a bank today, they're all black boxes, you can't see the risk. >> i'm telling you right here, it seems as though banks are taking as much risk or nearly as much risk now as they were five years ago. maybe the instruments are different but the level of risk hasn't changed that much, has it? >> leverage -- >> even if the instruments haven't changed.

the london wale was petting in one of the most complex cds indices. cds could credit fault swaps is what cracked the back of the crisis with aeg and everybody else. that's what jpmorgan was betting on in the london. jamie dimon himself said no one, not him, no one in senior management risk or compliance at jpmorgan chase had any idea a bet that risky was even being put on with their depositors' money. >> let's not forget the positives that have occurred in the last five years. the banks have raised an enormous amount of capital. close to $300 billion in capital. leverage yaratios are down. no doubt about it. balance sheets are stronger with all that capital having been raised. let's not even go into regulation because the regulatory environment has

become a lot more own runerous. fdic, consumer protection bureau, a whole host of new oversight. there are some positives here. >> i would just say, i think the thing we have to watch out for, because people are probably looking at us right now, what's in the future? i think it's fascinating the whole world is focused on the u.s. like maria said, the u.s. is in better shape financially. i see the same things developing. i've got an index of my 17 lehman indicators. the same things are developing in asia that we saw in 2007. off-balance sheet leverage, $1.2 trillion shadow banking loan. >> the big credit bubble over in asia you're worried about bursting and china leading that story? >> the credit crisis of the last 100 years have already met mother fa sized into anotherer is -- serpent, another beast.

>> it will manifest oifts the too big to fail institutions in the united states. maria, you're right there's been a tremendous amount of improvement in a number of of areas. at the same time they're coming off a base of basically no regulation. it's true, it's better. but nowhere near where it has to be. as long as institutions are too big to fail, which is to say if they fail, they crash the entire financial system and then they take down the economy with it. as long as they exist in that form, then they're going to pose that threat. whether the crisis comes out of asia or europe or comes out of wall street, it doesn't matter. it's still going to slam the country like it did last time. >> all right, guys. >> good point. gentlemen, thanks. appreciate your time today. we'll see you soon. coming up, could twitter's ipo help bring back retail investors, particularly young investors? there's a lot riding on this

ipo. >> 40 minutes to go before the bell rings on this sunny friday, beautiful out on the street. 67 points to the plus side for the dow. >> the very thought of it strikes fear in people's minds about the fed. will the fed announce the beginning of the end of the stimulus, the tapering as early as next week? there's a two-day meeting. many expect this is the day they will announce the taper. not me. who is larry summers? is he the best to replace ben bernanke? we'll talk with fed credit sxik follower, jim grant. >> boxing fans getting set for a huge championship bout this weekend. mayweather against alvarez. the real battle may be the boxing broadcasting war between time warner's hbo and cbs's showtime. up next, find out which stock would could be the winner in this clash of the titans.

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big weekend in boxing. super welterweight is on the line when floyd mayweather jr. and sal alvarez square off. there's a bigger fight outside the ring. >> this is the next chapper in the fight for boxing supremacy, at least among broadcasters. the business of televising boxing matches has been about two networks. time warner's hbo and cbs's

showtime. for years showtime has played second fiddle to hbo and then floyd meriwether signed a deal reportedly worth $200 million or more signing on with showtime, leaving hbo. golden boy promotions, promoting the fight, expects pay-per-view records to be set and prices to watch the fight are going up. the price for a standard definition broadcast of the fight will run you 65 bucks. if you want to see the blood, sweat and tears in hd, shell out $75. on closed circuit tv venues will cost 100 bucks. in a movie theater you'll pay around $25. now neither have lost a fight which why this fight could be epic. we spoke to money mayweather and asked him if he's nervous?

>> experience will play a make factor, a major key. at this level, it's pinnacle. at this level, it's a lot of pressure. but for myself, you know, i don't worry about nothing. i don't have no butterflies. i'm not nervous. i've been here so many times. i feel like i was born for this moment. >> in the ring it's money versus cane canelo but outside it's who will win the right for your money? >> we're duking it out ourselves and talking numbers on the technical side of the story is steven, chief equity strategist with prime execution. fundamental story, steve cortez with veracruz. who do you prefer? >> i prefer cbs. much like the fight, great performers. ail media stocks have had a great run this year, but between

the two cbs has outperformed time warner so far this year. it's outperformed most media stocks for that matter. i think it will continue to. the main reason i want to bet on cbs, i think content is king. you want content creators rather than the delivery platform. rather than betting on who will win the delivery of content, whether it's digital via mobile device, internet or fixed connections of cable, rather than betting on who will win that, you bet on cbs or disney. >> steve? >> i bet cbs. they tend to trade closely but two things in cbs's favors. following time warner's earning progress, they gapd up to a fresh high. it sold off that day. generally when we see this type of price action it indicates a stock needs to consolidate sizeways.

contrasting with cbs, cbs over the past year has been able to consolidate side ways and as it comes back to prior highs accelerates. this describes a basing going on. as cbs comes back to highs, if history shows, it will consolidate. >> you're a buyer of cbs not time warner? >> that's true. >> in terms of the fundamental story, steve, is this a long-term or just short-term blip? >> i view it as a long-term winner. as with the boxing match, you go with a proven winner. i go with mayweather and cbs will continue to win this fight. cbs is platform agnostic. they just made a deal last week, i believe it was, with amazon to show some biggest hit shows on amazon's prime network. again, i don't want to bet on the pipes. i want to bet on the water

company that fills those pipes. right now that's cbs and will continue to be. >> thanks for your insight. appreciate it. see you soon. 30 minutes to go, maria. 68 points is where the dow is today. that's to the plus side. s&p 500 higher by a quarter of a%. >> goldman now going to be the lead underwriter of twitter's ipo. find out if the stock is ready to take off. >> speaking of twitter, could the ipo intice younger users to jump into the market once it debuts? that's up next on the "closing bell." >> check out online edition of talking numbers at cnbc.com 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

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. one of most anticipated ipos since facebook n total twitter fashion, the company tweeted yesterday saying we've confidently submitted an s-1 to the s.e.c. for a planned ipo. this tweet does not constitute any ofsh for any securities of sale. >> will the twitter base bring in younger investors?

ross, to you first, is this going to bring this younger generation into the market? facebook was the great opportunity to do that. until the snafu heard round the world. >> well, you know, facebook was probably one of the most disappointing ipos i've ever sneen a lot of ways. i think if twitter manages their ipo right, i think it's a great opportunity to bring younger people back into the stock market. remember, this generation, younger generation, is very cynical. and i think the facebook ipo really played in on that cynicism. so, if twitter does it right, it will be great for the stock market. >> so, aaron, are you at iona college, graduating after this year. do i even need to ask if you use twitter? >> no, i do. >> you use twiter? >> yeah. >> would you invest in twitter? >> of course. >> why? >> well, twitter is much different from facebook in the social media industry, and i think it would definitely be a

very good investment to have in your portfolio. >> do you want to invest? >> oh, yeah, of course. >> do you invest right now? >> i do. i'm going to use my money left over from facebook to invest in twitter. >> you bought facebook? >> yeah. >> what did the facebook debacle surrounding it due to your psyche as a younger investor? >> they kind of played around. they flip-flopped and said they were going in, then they didn't go in. it was a whole chaotic mess. you know, the ipo. >> didn't matter to you? >> not really. down the line -- it's trading, at what it basically opened up at today, i believe, so i'm not too concerned about it. >> ross, do you think there's going to be a hangover effect of facebook and all that happened when people start to think about investing in twitter? for that matter, it's not just younger investors we need to worry about coming back into the market. there were older investors looking to get in on facebook as that next great ipo and because

of all that happened, even they were left out in the cold. >> well, i have to say, investing in any ipo has inherent risks. it's not just what the company goes out as the offer, it's what it trades at as the first trade. as much as i would like to add twitter to my portfolios, i still have to look at valuation. valuation is everything. you know, we tend to forget about valuations like in the old days, in the '90s, where we would value things at enormous valuations that in hindsight were kind of ridiculous. if twitter opens up, up 150%, the question is, do i want to get in there? it will be very difficult for the average person to actually get to the stock. by my estimations if they do $2 billion in the ipo, it will be oversubscribed by a tremendous amount. even if you just look at verizon bond offering over subscription. so, i think the real question is, how will this actually happen and how can they manage this to get the right amount of

balance on the upside but not overprice and be greedy like facebook was and ultimately really hurt a lot of investors? >> that's the most critical point, i think, that it has to be priced conservatively. like any ipo, you want to leave some on the table to get that pop, which facebook didn't. clearly overreached in the way that that ipo was priced. that's probably going to mean more than anything when it comes down to it. >> no, you're absolutely right. but then you don't want too much of a pop either. so, that's the balance that the underwriter at goldman sachs is going to have to work with. it's extremely difficult to do this right. it's almost like fed tapering. what is the right price to take it out at? most companies, if it pops a lot, end up doing a secondary offering anyway, which is a great way to raise even more money. and many ipos work in that fashion. this is a very tricky ipo. i think all investors have to watch this closely and don't

forget fundamental valuations do matter. they will always matter. in the end you might make money on the short term. facebook was a buy at $17. that's when facebook was a buy. >> well, you see linkedin there up 450% since its ipo? amazing. >> it is. >> a lot of 20-somethings have twitter and facebook and other things. let me ask you a a millenial, what else do you look at? why is twitter so exciting to you? is it more exciting to you than instagram or facebook? >> twitter appeals to a very different type of market. like the smaller businesses thrive on twitter. if you don't have twitter in your business model, it's obsolete. i think what you saw with groupon and -- >> yelp. >> yelp. the s.e.c. may have backed it

off for -- added -- like, they had financial -- geez. they had financial results exposed and they came back and eventually the stock was priced lower than expected, anticipated. >> thank you for your insight. appreciate it. >> thank you. >> and be sure to tune in tonight for the cnbc documentary "twitter revolution" tonight, carl qu carl's great documentary. >> yeah. we'll see if this market changes materially. we've got a rally of 64 point on the dow jones industrial average 20 minutes before the close of the week. >> coming up, it may be friday 13th but most have been feeling luck with this market this week. and, in fact, for the entire month. we're adding up the gains next. >> after the bell, michael dell wins. he's taking dell private and talking to me exclusively. that's coming up on the "closing bell." stay with us.

september is supposed to be the worst month of the year for the markets. not so bad.

>> how good? bob pisani is adding it up. >> everything's been wrong so far this year. sell in may, go away. wrong. september's wrong. bad. so, normally -- >> see if tapering is wrong. >> exactly. that's what i'm worried about. they think it's going to be $10 billion, $20 billion -- >> or maybe it's going to be zippo. >> right. watch this, november, december, january, supposed to be great months historically. november, december, january will probably be hard months. i'm trying to be contrarian here. >> you're doing a good job. >> thank you. a lot of those old ideas don't work very well anymore. i'm pleased we're doing well in september. i'm pleased to see that any time. but i'm worried about the complacency. i've said this. the debt issue, things like that, german elections on september 22nd. merkel is having a lot of problems. german electorate is not in a

good mood about bailouts. >> you don't think she'll -- >> i think she will get re-elected but afterwards there will be talk about a smaller european union, as greece goes out, and comes back in. i think the next few weeks -- i think the market is fat, bored and complacent right now. and it worries me a little bit when i see the vix at 14 and the s&p 1% from an historic high and we have all these macro events coming up. >> we've had a couple of mini corrections over the last couple of months. here and there. >> 3%, 3% -- >> but nothing substantial. >> we've have had the pullbacks. maybe the corrections people are used to won't materialize to the magnitude they normally do. it's hard to know. >> let's hope volatility stays low and none of these macro events actually occur. when you get markets back off the historic highs, we had a hard time punching through last time we were here. vix near the lows for the year,

that's a sign that the risk is to the downside. i'm not making any market calls. i'm just saying, be careful. >> that's the question, where do you put the money? that's the alternative. i'm on the other side of that trade. where am i going to put the moin? >> we see europe getting a little better. everyone believes china economic data continues to be a little better. everyone seems to think interest rates are going to stay at 2.8, 2.9 to 3.0, 3.1 and not go above that. i think a lot of assumptions are built into the market right now. that's why i'm a little cautious right now. i wish the public was more involved. that's what i wish more than anything. i wish there were more debates on the front page. should you get in, like all three of us discuss every day, i wish it was on the front page. >> there will be, bob, when twitter actually goes public. you will see those questions being asked. >> but even for the baby boomers, for retirement, for broader purposes that we talk about all the time. >> when facebook went public, that was the time to sell social media. then they came back and bought it again.

when facebook -- that was a negative nishinitially. >> now we're back to historic highs. >> thank you, robert. have a great weekend. 15 minutes before the closing bell sounds for the day. a ral liv 61 points on dow. >> next week could be very volatile for stocks. we'll look at that next. >> we have the latest details on a pair of disasters of biblical proportions in new jersey and colorado. back in a moment. stay with us as these stories develop. t paid to do something you really love, what would you do?" ♪ [ woman ] i'd be a writer. [ man ] i'd be a baker. [ woman ] i wanna be a pie maker. [ man ] i wanna be a pilot. [ woman ] i'd be an architect. what if i told you someone could pay you and what if that person were you? ♪ when you think about it, isn't that what retirement should be, paying ourselves to do what we love? ♪

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we've lost some rally. the dow jones industrial average up about 50 points. not much. have to call this a victory given we have so much uncertainty going into a two-day fed meeting. still have buyers coming in. >> the best day for the dow since january. we have larry cantor, bart from morgan stanley here with us. are you surprised how good it's been? >> up three percent plus. you mentioned eurozone industrial production down month over month. consumer confidencings biggest

fall in 14 years and retail sales came in light. the market is up. the market wants to lift. look at transportation stocks, small cap, the banks. they're all leading the market higher. so, as you know, our pal adam parker has 1840 on the -- he's looking for the market to be up 10% 12 months from now. we added 2% today to japan, asset allocation meeting. we're adding -- going overweight japan. we were equal weight, loved it, now going woefr overweight. >> where do you want to allocate capital? >> i think things are more balanced than in a long time. we've seen bond yields double. it's hard to say stocks don't kill bonds. now it looks even. you look at high quality munis, new york state, 5%, tax-free. >> that's competitive. >> yes, you're right. david is right, stock market has

momentum. i don't think the fed is a big source of uncertainty. they have telegraphed they'll start tape heing. i think it would be a shock if they didn't take something back. >> really? >> yeah. it would be amazing -- >> because they've lose credibility. they set you up for this. that's not how the fed operates. they'll do it. in a small amount, given how weak the economy is. and nervous about market reaction. even if they do 15, they're still pumping in $17 billion every month which still adds a lot of juice. >> could tapering really be priced in with the s&p 500 1% or less away from its all-time high? >> yeah. that's the amazing thing. look at bond yields. you wouldn't have expected stocks to have done this great. corporate earnings are at record high. i think the question looking forward, can that continue? usually at this point in the cycle, you start to see earnings

fade. i think that's a big issue. if they do, i don't think the stock market can keep going unless you get better economic growth. we're expecting and hoping for that. >> i don't think we're expecting $15 billion in terms -- >> i think it's $10 billion. >> if it's 10, does the market take off? >> it's a sign of health. if it's you, larry summers, we support you. if it's you, janet yellen, we support you. it's not good to tear down the head of the fed. we need to be strong as a nation. whoever our president picks, let's get behind them. >> that's fine and good, david, but the market may be upset if larry summers is picked or -- who knows. it's a big decision. >> give them time. give them time. >> you don't think there's a difference in terms of market reaction if it's janet yellen versus -- >> i think if it's kohn or yellen -- >> by the way, i give kohn a

bigger chance than most people do. >> bigger than larry? >> no. to me the president wants larry summers or else why spend this political capital and all that. i think if it's janet yellen or don kohn, it's more of the same fed. if it's larry summers, people will be nervous. david may be right, he's a smart, experienced guy but i think they'll be more nervous because it may not be more of the same. >> a little more unconventional if he comes in. ofm, outright monetary finance. we print money to put money in the bottom 80% of this country's pockets. that's what larry summers wants to do. >> once we get past the fed announcement wednesday, then we're focused on the end of the third quarter, right? >> and the budget fight. >> budget fight, for sure. in terms of fundamentals, third quarter, how is it? any sense of how earnings and revenue have been? >> i'm more cautious than i have

been in a long time because earnings and stock market have been so strong. we're up almost 20% already on pretty weak economic data. as you say, a lot of things coming up. we didn't even mention german elections, all these other things. makes me a little more cautious with bond yields. i wouldn't be surprised to see fixed income do a little better here in the next few weeks. >> and german constitutional court ruling, don't rule that out. that will come probably after the election, whether omt is legitimate or not by german constitutional law. >> if adam parker is right and there's a lot of upside left in this move in the market, what's going to get us there to plus 1800 and whatever on the s&p? >> market multiple can expand. he's looking for 115 times to get you to the 1840 number. you've seen as the economy gets better and interest rates rise, pe can expand.

that's built in but not a huge expansion. >> 17 already? >> that's right. >> i think you need to see better growth now. >> i think the bar is higher. people are more optimistic. if you don't get better growth going next year, you don't get it. because we get rid of fiscal tightening. >> buy halliburton, shale, that's a great way to play mexico. mexico is hard to play but buy some oil drillers. >> oil, 108.58 today. on a quiet creep up. good to see you. have a fantastic weekend. >> thank you. >> go get a five-hour energy drink. you were a little flat today. david darst. up next, back with the closing countdown. >> two interviews, jim grant and we'll ask him about the controversy around larry summers and janet yellen. the first interview over beating

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♪ [ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ all on thinkorswim from td ameritrade. ♪ welcome back. we're on the floor of the new york stock exchange. time for the countdown. we'll take a look at dow jones industrial average for one week. it's been the best week for the dow since january. we're going back at the highs of the day. almost 67 points.

there's the 3% move in the dow over this past week. take a look at social media stocks as well. the story of the day clearly is twitter filing for highly anticipated ipo. facebook dropping off a little bit. you see linkedin, groupon, zynga and yelp. on the floor with ail letter friedman. taper and if so, what does that mean for the rally? >> it is coming. i believe the rally for the stock market might be interrupted if the taper is larger than $10 billion. it is a buying opportunity. the fact of the matter is the world economy is improving. seeing leadership in the markets from the industrials, old-time names. that tells you something good is going on. high interest rates is a sign of something good. >> a dip, a buyable dip? >> absolutely.

>> have a good weekend. ben willis from albert freed. have a good weekend. maria will pick up the ball for the second hour of the "closing bell." more of her exclusive interview with michael dell and his big victory. that is next. it is 4:00 on wall street. do you know where your money is? welcome back to the "closing bell." i'm mari maria bartiromo. dow jones industrial finishes at 75 points on the day. one half of 1% at 15,376. nasdaq composite higher, 6.22 points. s&p 500 picks up 4.57, at 1687. volume is not