people were expecting what is a historically bad month for the markets, september being rocky given everything that's in front of us, the fed meeting this week will be critical. >> the emerging markets have been coming back this month as well. wednesday is the big day we all have to watch out for. >> thank you for watching "street signs." scott, thank you for joining us on the show. "closing bell" is next. good afternoon. welcome to "the closing bell." i'm maria bartiromo. >> i'm bill griffeth. we continue our coverage of the naef yard shootings. the backdrop is a market that is significantly higher today. we will have more market coverage on a day after larry summers took himself out of the running for the fed chairmanship, and that sent the stock market higher, although the bond market, which had sharply higher prices and lower yields has reversed itself. we'll talk about that coming up. in the meantime, much more coming now on the markets and on

what's going on in washington. >> and there is a look at the markets. up 111 points on the dow jones industrial average. very light volume on this monday. the nasdaq down a fraction. once again, technology under pressure. >> apple down 3% today so far. >> s&p 500 up about 9 points but we want to get to our top story and the latest on the tragic shooting at the washington navy ship yard. let's get right to amon leading our coverage all day. what can you tell us? >> reporter: we've got new information just within the past hour here. officials have named the suspect in the shooting here at the washington navy yard. there are still reports of other -- at least one other individual they'd like to talk to. but the shooter they have identified as 34-year-old aaron alexis. originally he's from ft. worth, texas. he was i.d.' eed by checking hi fingerprints. he recently started working here

as a civilian contractor. we're starting to see a lot of people emerging from the scene. a lot of civilians and military officials, navy uniforms coming out of that area where they had been under lockdown earlier. we don't know exactly what that means for now, but we do see a lot of foot traffic now emerging from the area. that is potentially a heartening sign here that maybe people are being let go from this area that had been under lockdown for much of the day, up until just a few moments ago, if that's in fact what we're seeing here. but a very dynamic, fluid and for many people in washington, a very scary day here at the washington navy yard. >> thanks very much. we'll come back to you as the news develops. >> in fact the hospital where there are three people who have been injured as part of the shooting, they will have a briefing at the hospital coming up in about ten minutes here and we'll have more on that coming up as well. let's get you caught up on the markets as we go into the final hour of trading on this monday. another rally. we've got mark tepir, john

heiler and steve grasso from stewart frankel. steve grasso, what's the message of the market today? why a rally when larry summers, the day after he pulls himself out of the running for the fed chairmanship. >> originally when we first heard his name as the front runner, the market gave back a percentage point so i'm not shocked at all to see that percentage point come back in, sort of telegraphed, i would assume. >> because he was expected to be more aggressive in tapering and removing the morphine from the market? is that what the market's fear was? >> i think that's the case. there was no hawk in this fight. but he was perceived to be the most hawkish amongst the doves and i would guess that was the case. >> so i wonder if this holds true, mark, when you look at a market rallying going into tomorrow's two-day fed meeting, would you say the likelihood of a tapering has now calmed down? >> no, no, no, no.

we still do think that we're looking at a taper really at the end of the meeting in the vicinity of probably 10 to $15 billion. we think that should happen and we do think the quantitative easing program will actually conclude by probably early second half of 2013 so we think it's a good possibility. >> john, i go back to my question what is the message of the market. this month of september has turned out to be the second best month of the year for the markets at a time when you've got the situation in syria, which has pushed oil prices sharply higher, the expectation of tapering, the larry summers thing. i mean why is this market continuing to march higher here, do you think? >> i think the list is a little longer on things. >> i could go on. >> basically we have a survey being released tomorrow talking about how the political issues, how the terrorist issues, how

event issues have started to permeate into investors' minds. i think even the american investor, knowing larry summers was up for the fed or understanding the concerns going on in the federal government, that started to permeate into the investors' minds so they have been putting money to work even with some of the weaker number that say they see but they hear good numbers. so it's a contradictory marketplace when it comes down to individual investors. >> bill, just to expand on this a little bit, long onlies love this type of market but hedge funds are having a tough time. every time you leg up another round, they're forced to cover. if they're forced to cover, it just exacerbates it. that seems like this should be the ballots ground going into year end. >> you think 1700 on the s&p is a critical number. we're three points from that right now. >> we're here but the highs are 1709, 1710, somewhere around there. it's going to force a lot of guys to do that last gasp of covering. i would assume if a hedge fund

doesn't want to get totally redeemed, they're going to have to lay out shorts at this level. >> so it sounds like you all expect a tapering to be announced at some point this week after that two-day meeting. the next question is how do you invest around that. john, are you putting new money to work even though you're expecting the tapering to begin? >> yeah, i think you have to. i think people need to figure out what they're looking at for the longer term portfolios. you know, when we did this survey in 2011, only 17% of investors looked at alternatives. today 72% are looking at alternatives. so people are trying to figure out ways to continue to invest in the market. no matter what happens on the tapering, no matter what kind of event risk is out there, they're just trying to figure out how to build a durable portfolio to deal with the volatility that exists in the marketplace. >> you're mentioning alternatives. what are those alternatives? >> you've got the hedge fund category. you have beta replication, you have products now that allow you

to get invested in commodities types of products. so you have a whole list of different type of alternatives that can help you mitigate your risk and volatility in the portfolio while at the same time keeping you invested in the marketplace so that you can live through some of these event risks that are happening. >> as i mentioned earlier, the bond market reversed itself, it was sharply higher in price, lower yields, now it's come back again. we are well off the highs for the major averages in the stock market. what do you expect to happen in the close here? >> i expect a little more profit-taking. we have a busy couple of days as you guys know. taper to me has the sell the news type event right now so i would sell the fact going into the latter part of this week, i think this is a little bit topee in the marketplace. it's all been factored in. i would be a seller. >> thanks, everybody. appreciate your time today. we'll see you time. >> thank you. let's get back to the situation in washington.

scott cohn has some of the latest details for us. >> reporter: bill, things continuing to unfold. employees at the washington navy yard now being released but now word from capitol hill that there's likely to be a shelter in place order going out or advisory at least going out at the capitol shortly. we'll keep you posted on that. the casualty count now at 12 in the navy yard shooting. that coming from washington, d.c., mayor vincent gray less than an hour ago. the shooter was killed by police and police chief kathy lanier says they still don't know the motive for the shooting. the dead suspect was a 34-year-old texas man who used a former employee's i.d. to get into the navy yard. officials say there are two more suspects or at least persons of interest at large. two men, one white, one black, both of them wearing military-style uniforms and that may explain why that caution going out at the u.s. capitol where the sergeant in arms is telling nbc news that he's recommending a shelter in place situation at the u.s. capitol.

we will, of course, keep you posted on that. back to you. >> all right, scott, thanks very much. just a terrible story. >> you know, the navy yard is only three miles from the white house. it's only two miles from the capitol. so it's very close proximity to those critical areas. so i'm not surprised they're putting in place that shelter in place order for some of those critical portions of washington, d.c. >> of course we haven't seen much reaction here on wall street to these developments in washington. we've got 50 minutes before the closing bell sounds. it is a quiet day in terms of volume. the dow is up 125 points on the news you heard earlier, larry summers withdrawing his name from the fed chairman contest. >> yes, indeed. we'll have the latest on the deadly shootings in our nation's capital, plus d.c.'s mayor and police chief will be speaking at the top of the hour again. we've got the hospital briefing as well to get to, so stick around for that on "closing bell of the" stay tuned.

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welcome back. we are awaiting a briefing from a hospital in washington with the very latest on the casualties from the d.c. shooting. we will bring you that live once it does begin. back on wall street, this market is rallying despite the shootings in d.c.

bob pisani has been watching this market climb a wall of worry. >> take a look at the s&p 500. we got very close to a historic high, 1709. we got within a few points of that and then started coming off of that. what's remarkable is that this summer's rally, if you want to call that, really was the major factor. the terrible shootings in washington do not appear to bring the market down. take a look here because we had low interest rates help a number of different areas. emerging markets, for example, 3% gains in some of the markets like philippines and thailand. low interest a help for housing stocks. so all the major home builders have had a pretty good day. what did interrupt the rally was a problem with trading options that happened in the middle of the day around 1:40 eastern time. trading on all the major options exchange was halted over half an hour due to issues with the option price reporting authority, that's opra. that's the computer that cinco

de mayo na-- disseminates prici information. they are investigating that processing error. take a look at the nyse stock. again, they are the ones that operate this particular computer, it's part of the division of the nyse. nasdaq, their options exchange also went down. nasdaq briefly dropped, but i want to emphasize, nasdaq, while their options arm went down was not at all a cause of this particular problem. again, this appears to be related to opra. we're getting more information on that. all the exchanges i do want to mention are up and running now that we understand, all the options exchanges, maria, are now up and running. back to you. >> bob, thanks very much. we are continuing to follow the breaking news out of washington, d.c. joining us right now from washington is james gilmore, the former governor of virginia, who was in office during the 9/11 terrorist attacks. governor, good to have you on the program. thanks very much for joining us. >> thank you, maria, thank you,

bill. >> what is your instinct here? how do you protect an area. you were the governor of virginia when the pentagon was attacked back on that fateful day september 11th. what's your reaction to an incident like this in terms of protecting the people when you have such fast-moving developments? >> well, that's right. as governor during the 9/11 attack, my duty at the time was to provide some sense of stability and some sense to the public that in fact things were being handled and that their safety was being protected. in this particular case, we've just got to know more. if it's one shooter and he had some kind of personal problem that was causing him to do this kind of violence, that's one thing. if it's multiple shooters because of some political motive, that's another thing. but i think that the first responders are doing a good job and we always believe the first responders, police and fire and rescue are the way to go to get control of a situation like this. >> you know, governor, we think back to the ft. hood shooting in

2009, which took 13 lives there. here we have 12 lives. we're reminded again how difficult it is to provide adequate security in all places again, right? >> in a free society, that's always going to be difficult. in an authoritarian society, you just disarm the whole population, which we do object do in the united states. we still believe in individual empowerment and individual responsibility, that includes with firearms. but that means that you can have an incident like this. once again the most important thing is to get the facts and then respond appropriately, not overreact. not to become hysterical or panicky, to be stable and responsible on behalf of the public. >> this rampage obviously the deadliest in the u.s. since the massacre at sandy hook elementary school. and, you know, they were targeting patriots, military and civilian alike. how do you go about protecting military facilities like this? >> well, military facilities are often pretty well protected.

a deliberate person who's stealing an i.d. and secreting a gun is going to be able to do something like this. of course you've got to be in a position to react immediately and responsibly it's really a terrible situation. i think all of us feel very, very pbadly about these people that have been killed. but at the end of the day let's find out what happened and respond deliberately and responsibly and forcibly whether through the homeland security system or the criminal justice system. >> we start to get a little over our skis when we get into the speculation since we don't know a whole lot, but we do know this gentleman, the one shooter we know of at least, 34-year-old aaron alexis, recently began as a civilian contractor. what kind of security do they have to go through in order to be employed by the navy yard? you would think there's major background checks done, or not? >> absolutely.

i'm actually on the board of directors of caci which is a contractor connected with this and many other facilities. you go through a lot of security to make sure that you're the appropriate person that's supposed to do doing things kinds of jobs. but in a free society where you have free movement, we don't control everybody all the time, you'll have miscreants that do things like this. we have to find the facts, keep our perspective, maintain our civil freedoms and go forward as a freedom-loving society. that requires a lot of discipline because in a moment like this, with all this tragedy, you have a tendency to overreact. let's find out the facts and then we'll know what the appropriate reaction should be. >> governor, nice to see you. wish it was under different circumstances but thank you for joining us. >> thank you, bill chblgt thank y you, maria. >> we are waiting for the presser from the hospital and that has just been moved to 3:30 p.m., that briefing on the navy yard shooting. >> three injured -- i mean we

have 12 confirmed dead, including the shooter, aaron alexis, and three injured so we'll wait to see what condition they're in right now. >> we'll be right back, stay with us. (vo) you are a business pro. maestro of project management. baron of the build-out.

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[ male announcer ] truth is that won't relieve all your symptoms. new alka seltzer plus-d relieves more sinus symptoms than any other behind the counter liquid gel. oh, what a relief it is. welcome back to "closing bell" with the dow up 130 points today. joining us now as we continue to follow the developments of the d.c. navy yard shooting, robert strang is joining us, now ceo of

investigative management group. also don berelli is a former special assistant agent in charge for the fbi, now senior vice president for the sufan group. good to see you both, thank you for joining us. robert, i know the investigation has now transitioned from local d.c. police, the fbi now taking the lead. what does that mean? what are they doing that the d.c. police wouldn't be doing? >> well, i know that as a former dea agent, i know that these background checks, especially with these contractors, sometimes they're being looked at. right now they're being looked at very carefully since snowden got caught up in this information. this individual seems to be a potential contractor. the government will be looking very closely at his background. right now they're looking at his cell phone, computer drives, talking with family members. they're trying to make sure that this was an individual act and not a conspiracy. that's what they're trying to pull together right now. >> and that's what everyone is trying to fig oure out, conspiry or -- >> at least motive, right?

>> don, what are the kinds of things that you would look at to try and peel back the onion and try to get to the motive? >> sure. they're going to want to get search warrants to look inside this person's home, the computer, his work computer, his home computer, try to figure out are there any messages that have been sent. sometimes individuals with a gripe put a manifesto, they'll almost publish their intentions on social media, so investigators will be looking at that and looking to see if there are any other individuals involved along with right now there is still a tactical operation ongoing potentially to identify another co-conspirator at loose in the facility. >> but i go back to the fact that this aaron alexis, who allegedly was the shooter, if not the only one, but he was just recently employed as a civilian contractor. wouldn't something -- wouldn't a red flag of some kind come up in the background check that has to

be done, that governor gilmore was just telling us about, robert? what was missed here, do you think? >> well, that's the question and why was it missed. more and more we're hiring these government contractors and we're seeing mistakes that were made. we saw it with the nsa leaks and have seen it in other cases as well. when i first went to work as a clerk in the fbi, they did a fullback ground. when i went to work as a dea agent, they did a thorough background. they're not doing the same types of backgrounds for contractors as they do for agents working with the justice department and other military facilities. >> especially when it's a military facility that you would think has such tremendous security. >> and, bill, the thing is that right now i think one of the reasons you're seeing stability in the market today, if not confidence, is probably because people are saying, look, this is somebody that slipped through the cracks. this was the lone ranger, if you will. this isn't a major conspiracy. it doesn't seem like it's al qaeda or al qaeda-related. people have faith in the way that homeland security is set up. they have faith in our system

and they realize that this is kind of a lone wolf incident. >> but we all assume that anything military related is going to have extra security, more so after september 11th. should we be questioning that, that perhaps it's not as secure as we would have expected or this is a one-off because he stole someone else's i.d.? >> well, it's still too early to tell but i think you have to look at it right now as a bit of a one-off until we learn more. again, these guys, there are thousands upon thousands of people that get security clearances that work for the government as contractors, and we don't have any problems with them. by and large, the system works. however, there are some bad apples. we saw this with snowden. now we see this individual. it's just too early to tell if this is a one-off or if this is a trend. >> by the way, before we go, don borelli, would you be surprised if in fact there was a second shooter?

they thought there were two but have eliminated one of them as a potential suspect. they're still looking for another gentleman still out there, apparently. >> well, these things take time to unfold. the facility, when it's a tactical situation like that, the tactical teams are going door to door, room to room, clearing every hallway and everything. >> but in terms of the motive, would you be surprised if there's more than one shooter in this case? >> it's too early to tell. i wouldn't go record to say either way. let's see what the investigation has to say. >> all right, thanks, gentlemen. >> appreciate it. >> we are waiting on that presser. we're going to take you to the hospital podium when we come back as soon as we take this short break. stay with us, we've got a market that is up 126 points on the dow. >> was up 172, as a matter of fact. so we'll see how we do as we head toward the close. stay tuned. ti, 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

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we have market news here. >> we're watching jpmorgan because they have agreed to a settlement with regard to the london whale fine, the trades there. $700 million with regard to the number that they are actually going to pay in fines related to the london whale. these are the interest rate trades that ultimately led to the multi billion dollar losses

at jpmorgan. one other thing to note that's a little interesting is last quarter jpmorgan actually set aside about $700 million in possible litigation expenses, so what we're hearing from dow jones is a $700 million settlement for fines related to the london whale. we'll give you more details as they become available but a very big fine and very big story with regard to jpmorgan. back over to you. >> we want to get more on the tragedy in washington. scott cohn following the latest details on this terrible shooting in washington, d.c. >> police have identified one of those two people. he was described as a white male. he is not a suspect. they are looking for a black man in his 40s, 5'10", 180 pounds, medium complexion wearing an olive military-style uniform. the man believed to be the primary shooter was killed early on. authorities say he was a 34-year-old texas man who used a former employee's i.d. card to

get onto the navy yard. 12 people are dead. we're waiting at this hour for another briefing from hospital officials. that briefing running about 15 minutes late. at the navy yard employees are being allowed to leave, but at the u.s. capitol the sergeant in arms has issued a shelter in place advisory, particularly for the senator office complex and also tonight's baseball game between the washington nationals and the atlanta braves, just blocks from the navy yard, has been postponed. >> all right, thanks very much. we want to get more on this. with is right now is eamon, bradley shriver, a former adviser for the u.s. department of security. >> reporter: as scott was just reporting the shelter in place order here at the washington navy yard has been lifted. what they have been doing is allowing all thoese civilian an military employees who were holed up all day long to finally leave their offices.

they have been bringing in washington, d.c., metro buses for those people who need a ride out of here because this area is still fairly well locked down in terms of traffic. a lot of those people now leaving the building. we had a chance to speak to some of them and they told very scary stories of some of the very frightening moments after the shooting began describing a scene in which the fire alarm went off and the p.a. system began blaring a warning to shelter in place, shelter in place. officials talked about some of the people slamming shut emergency doors in order to seal down different parts of the buildings, so it's some very confusing and hectic moments in there. also just blocks from here at the united states capitol, a shelter in place order is now in effect there. they're billing that as sort of a precautionary measure. officials and senators are allowed to roam around inside the building but they are sheltering in place. the senate complex, that might be out of an abundance of caution because officials are

still describing at least one person who was a person of interest they'd like to talk to still on the loose and they have not been able to pin down where that person is or even who he is. that's what we know from right now, maria. >> bradley shriver, a question that we're asking here is how thorough these background checks are on people who become civilian contractors. this aaron alexis, the dead shooter that's been identified as 34-year-old aaron alexis, recently employed as a civilian contractor. the question about background checks, but also this curious development that he used somebody else's i.d. to get on the navy yard, even though he was a civilian contractor. what do you make of all of that? >> thank you for having me. but going back to your original question, the process, the vetting process for federal employees, both civilian and other, is very, very thorough. there's -- especially depending on the level of clearance that you have, it goes -- it increases. but to even get on a base you have to go through a very thorough vetting process, so

that -- the issue is if somebody wants to try to engage in this type of horrible activity, you'll have somebody that's going to succeed. >> so what is your plan now? at the homeland security office, what do you think is going on in terms of locking down other perhaps vulnerable areas and getting to the bottom of this? can you take us through some of the steps that the homeland security office would normally go through? >> well, right now what you're seeing is a tremendous amount of interagency coordination. based on reports this morning, metropolitan police department, mpd, responded within seven minutes. the park police responded a few minutes after that. and then you had fbi, atf and the other federal agencies show up. the problem that you have is that you have to make sure there's so much information, you sometimes get into a data crunch environment. so what you really need to do is to sift through that information

as quickly as possible so you can start peeling back the onion on the levels of security that you have imposed on that area. >> by the way, we keep waiting for the briefing from the washington hospital center where those three injured victims are to get an update on their condition. that's been moved now another ten minutes to 3:45 eastern time. eamon, you've been there all day. this occurred at 8:30 this morning. describe now the mood. it seems like you were describing in a report or so ago that things seemed to be relaxing to some degree as they let some of the employees leave the navy yard. am i misreading that? >> reporter: yeah, that's right, bill. they do seem to be relaxing things a little bit. they are letting those employees go. as i say, we saw hundreds of employees streaming down the street just behind me a few minutes ago as they were being released and buses full of employees, a couple of buses full of navy personnel leaving this area.

so it looks like people are allowed to go home. i spoke to one person who said some of the witnesses are being bussed to a separate site where they're going to be interviewed in detail about what they saw. i also spoke to one person who was in the building this morning when the shooting happened. he said to get access to the build, you have to have what is a swipe card like we have at many prooifs office buildings at well. he said at some of the doors you don't need to go through a magnetometer to get into the building. so if that is to be believed, it looks like you could get in with just that i.d. card and for physical search of your body for weapons so that might have been the weak point in the security, bill. >> bradley, do we need to change that? those of us who work here at the new york stock exchange, we come in here every single day. the guards know us by sight and yet we still go through a thorough security check before we come into this facility here. do we need to do that more at facilities like the navy yard?

>> i think what we're going to have to do is similar to what we did after boston. look at what went right, what went wrong, to evaluate the security procedures and to see what is the best fit for that environment. we always have to be on guard and balanced between the efficiency of getting people into where they need to go, the background checks and the need for additional security. >> all right. we will leave it there. gentlemen, thank you very much. we will continue following this and we appreciate your insights. we have about 20 minutes before the closing bell sounds for the day. meanwhile, the dow up 113 points. we're going to take a break and then we've got the hospital briefing that we're going to take you there live to get the very latest. we know at this point that there are three injured and 12 dead at this navy yard shooting. we'll get more information next. >> also a reminder at the top of the hour we have the latest briefing from d.c. police. the police chief and mayor vincent will be along in a little bit to brief us on the latest developments as well. that will be at the top of the

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welcome back. more breaking news from jpmorgan. kate kelly on that story. >> reporter: i'm hearing jpmorgan may be soon to settle a

total of a combined $800 million in a group of settlements with a variety of regulators. that would include the securities and exchange commission, the occ, the british fca as well as possibly others, including the federal reserve. they have numerous investigations and settlement talks going on all at once over charges related to the london whale. that was the situation last year in which they lost more than $6 billion on some liquid credit trades and as a result they're facing numerous issues, including failure to supervise or shoddy supervision suits with a number of regulators. so we understand that as early as this week, they may be settling to the tune of nearly $800 million depending on how these details are finalized. >> that's unbelievable, kate. the numbers are mind boggling. >> they really are. they're in the billions on losses and now of course regulatory fines as well. >> right. and this is -- this is the story of the day. jpmorgan in the cross-hairs but fees are going up.

profits are doing fine but fees are going up from the regulatory environment to health care to the uncertainty of regulation. i mean that's why people are sitting on their cash. >> this is way beyond the cost of doing business, as they say. i mean, right? these huge, huge fines here. >> meanwhile, we're covering all day the tragedy in washington, d.c., today after a deadly shooting in the city's naval yard. >> john harwood has been spending the day at the white house getting more reaction there. john? >> reporter: bill, this was the day the president was hoping to commemorate the fifth anniversary of the financial crisis, talk about what's been done, talk about how to prevent a setback in terms of government shutdown or debt crisis. he did make those remarks but he found himself compelled at the beginning to observe what had happened at the navy yard. all the details weren't known at that time but he extended condolences to those affected, those killed. we now know a dozen people were killed. he said the federal government will do everything it can to prevent it from happening again. >> we send our thoughts and

prayers to all at the navy yard who have been touched by this tragedy. we thank them for their service. we stand with the families of those who have been harmed. they're going to need our love and support. as we learn more about the courageous americans who died today, their lives, their fam y famili families, their patriotism, we will honor their service to the nation. they helped to make great. obviously we're going to be investigating thoroughly what happened, as we do so many of these shootings, sadly, that have happened and do everything that we can to try to prevent them. >> reporter: that allusion at the end by the president to do what we can to prevent them is a reference to his gun control agenda which was roadblocked earlier this year in the congress after the newtown shootings. the president is going to talk about the economy all week, including at the business roundtable on wednesday, but you can expect the gun control

debate will also re-enter the conversation, guys. >> john, thanks very much. we'll keep coming back as the news develops. the stock market resilient in the face of these shootings. bob, the market never acted like this incident could get bigger. >> no. it didn't dramatically drop the stock market. take a look at the s&p 500. what did take some wind out of the stock market was that trading glitch in options that occurred around 1:40 eastern time. that's now been resolved but id did take some wind out of the sails of the stock market. we did see the 10-year yield. larry summers dropped the 10-year yield about 10 basis points, maybe 8 basis points. lower rates always a big help, they moved up here. turkey, jakarta, thailand all moving to the upside. we also saw oil down almost $2. that helped the airlines. the axl is at a new year high.

techs, look at that, apple is down 3.5%. that's about an 11% drop in apple since the iphone 5s was announced. let's get more on the market today. dominic chu breaking it down. >> reporter: all ten sectors in the s&p 500 are just around flat or actually up on the day so we've still got a little momentum. the single biggest gainer in the s&p so far, allegheny technologies. they're the maker of specialty metals. they agreed to sell their tungsten materials. kenna gets a bigger footprint in aerospace and energy markets. also keeping an eye on home builders. these are among the top performing stocks today on news that former treasury secretary larry summers no longer going to be considered for the next fed chief. the move is seen by many traders

as a signal the fed could continue economic stimulus plans. those lower rates help home builders sell more homes. another group of stocks hoping on a boost is the real estate investment trusts. they're all getting a boost. if interest rates stay low, then the relative yields could be more attractive. and some deal news with allegheny technologies. back over to you. >> you and i this summer were betting that the fed would not be announcing any tapering at this meeting that's coming up this week. >> yeah. >> just looking at the economic data still, i would -- i would not think they would, but the betting seems to be that come wednesday they will announce some minor amount of tapering just to start the process, the ball rolling. >> you and i are looking at the markets that the fed put out. >> we're taking them at their word. >> inflation rate. but i think others are looking at that as a marker for higher interest rates and not

necessarily as the taper, the beginning, taking $85 billion to $75 billion. that's the only way i could see tapering happen. i still don't think it happens this wednesday because the economy is still very fragile and bumping along the bottom. >> i agree that it probably wouldn't, but it might. >> i'm wondering if the fed feels they lose credibility if in fact nothing happens. >> maybe. i mean i could see the argument of ben bernanke waiting to let his successor, whoever that's going to be, start the process. >> or start it in december. you started the process and then the rest goes to the successor, probably janet yellin. ten minutes before the closing bell sounds. a market is up 105 points on the dow. >> we're awaiting the mayor and police chief of washington, d.c., their latest update on the shootings at the d.c. navy yard will be at the top of the hour. we will go there live for that as well, so stay tuned. much more to come on the "closing bell." we went out and asked people a simple question:

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welcome back. waiting for two news conferences to get under way. on the left we'll be hearing from d.c. mayor vincent gray, police chief kathy lanier. give us an update at the top of the hour. after that around 4:20 eastern time we'll get the latest from washington hospital center on the three shooting victims and get the update on their conditions. so that's still to come here on

the "closing bell." >> meanwhile the markets today back on wall street, triple-digit gain for the dow. it all started overnight really when the news was released that larry summers was withdrawing his name from the contest to be chairman of the federal reserve. presumably he was going to be more hawkish and more aggressive in terms of slowing down the tapering and so the market rallied on that news. >> joining us to talk about the markets, eugene profit for profit investment management and steve sachs. good to see you both. why is this market higher today? is that just because larry summers dropped out of the race, do you think? >> it seems like it is, a summers rally. >> we've had a tremendous rally in the month of september anyway. >> i agree, bill. i think if you look at the economic environment, you look and people think the fed is going to moderate very slowly now of the and so investors are excited and basically getting back into the market. they have a little bit of a short squeeze going on. >> that's interesting as well, because we've seen the short numbers coming up this whole month and of course when you

have a market like that, you would expect that. steve, what are you seeing in terms of money flows right now? where is the conviction? >> the conviction is where the conviction has been really for the most part of the year. eugene is right, the fact of the matter is the fundamental backdrop is pretty good. the fact of the matter is even with the employment number that we saw a couple of weeks ago, things are okay from an economic perspective in this country. that's why the fed is thinking about they have a window of tapering at this point. we see flows in domestic equities. certainly a large cap space. we're also seeing flows in europe, which is picking up steam from an interest perspective as well. >> this year we've had two 5% pullbacks in the market. we've gone a long time without a 10% correction in this market. we are well overdue, wouldn't you agree? >> i do agree. >> but yet are you committing money to this market? >> i am. but i'm getting in selective securities. i'm the type of investor that gets excited about apple being down today. i think it will go to 500 before it goes to 300. so i'm looking for names that

have had a little bit of a pullback that also has great earnings. i wouldn't buy the market in mass here. you've got to be a stock picker and pick selectively. >> we just heard that we had about $250 million for sale going into the close. we'll see if that takes more wind out of this, but where would you be allocating capital? >> large cap technology. infrastructure plays like apple,in intel, kiss cisco syst. and selectively consumer discretionary. but i think you have to be a selective stock picker here. >> are you going to try to short anything here? >> not really. >> the hedge funds are getting killed in some cases. when you get this kind of a market that just keeps going up and up and up and up. they have to hedge and be long and short at the same time. >> we see it absolutely. we see this continued trade to the upside from whatever you want to call it. call it a momentum perspective, money chasing, call it performance chasing. the first half of this year,

particularly hedge funds, missed a good part of this move in equity so we see two big themes. we see equity continuing and we see people wanting to hedge fixed incomes. >> is the market going higher because they're expecting a better economy or they don't want to miss a rally that's already been under way. >> i think the answer is yes. first and foremost it is based in fundamentals because the fact of the matter is the economy is in better shape. >> what about europe, you mentioned europe. where specifically. are you seeing country funds, any area in terms of sectors capitalizing on bottoming out in europe. >> flowwise right now it's still broad based, which makes sense. people are committing flows to broad based passive strategies right now. the one sector we're seeing activity in broadly from an etf perspective is the european financials. again, that's people trying to pick the trough in the european economy. >> energy? anything in the energy sector you would buy here? that's been a strong group here.

>> and oil is at 106. >> it doesn't excite me. i think you can still get out in the shell place to some extent as the economy improves. you are going to see demand higher, but as the dollar begins to play around, you see oil going up, so i'm not excited in any way. >> we'll leave it there. gentlemen, thank you very much. we'll see you soon. >> we'll come back with the closing countdown as we head toward the close of what has been an incredibly newsy day. >> we'll have much more on the deadly shootings in washington. in a few moments we'll hear from washington's mayor and the police chief. we'll take you to those briefings live. stay with us.

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let me just show you a rally day from the get-go this morning after larry summers dropped out of the race for the fed. 172-point gain is the peak for the day. we're off that, up 115 right now. bond market, you saw yields drop on the open this morning but we've come back again so there was some selling in the bond market as we headed toward the end of the day. arthur cashman, how are you, my friend? why is this the second best month of the year given all that's going on. oil has been going up, we have the syrian situation, the expectations for tapering, yields have gone up and we have this market rally continuing. >> it must be climate change, i think. >> i guess. >> september usually is one of the toughest months. we had a bad august.

they might have stolen some of that thunder. i would be wary. the market is getting a little complacent here. we're going into that wednesday fed meeting. i want to watch that. also don't rule out a continuing dollop of syria. if you look at oil, down $2, if money was going to get looser and cheaper, that wouldn't drive oil down. >> the expectation is that the fed israel mawill make some ann of quantitative easing by $10 to $15 billion per month maybe. how do you think the market responds to that? >> well, i think it might have a little bit of difficulty. the key thing is will it all be treasuries. >> or mortgage-backed securities as well. >> if it's mortgage-backed, then the mortgage rates are already staggering a little bit. but today's rally, i don't want to be a rain maker, but where's the bottom? you're up 150 points and where's

the bargain. >> i maintain this is the new normal. always good to see you. thank you so much. so we finish out the day a rally off the highs. the dow was up 172. finished up about 115 with the s&p up about 9 points on the day. stay tuned, much more to come now in the second hour of "the closing bell with maria bartiromo." i'll see you tomorrow. it is 4:00 on wall street. do you know where your money is? hi, everybody. welcome back to "the closing bell." i'm maria bartiromo. it is 4:00 on wall street. this market rallied despite deadly shootings in washington, d.c. we've got all of those stories covered for you. take a look at how we're finishing today on wall street as we await a new briefing from the d.c. mayor and the d.c. police chief. we'll take you there live as soon as they get in front of the podium to give us the details on what is behind these deadly shootings where we know 12 people are dead. the dow tonight up 117 points on the session, triple-digit gain.