level. >> anyone interested, a number of indian-based ones as well. >> buy them in rupees because there's currency rick, too. don't forget that. >> yes. >> thanks for watching "street signs." not just today but always. >> "closing bell" is next. see you monday, folks. welcome to the "closing bell." here on a friday, as the hour begins seeing a little bit more of a rally than a lot of the action in the session today. >> i always said i wish we could bottle that feeling we have on friday and parse it out the rest of the week. i'm bill griffith. today's market is being viewed as win by many investors. this, of course, on the heels of two successive triple-digit declines for the dow and real fears that maybe something bigger and scarier was ato the,

but the bond market was plunging this week. >> and there's been some geopolitical concerns and moving to the sidelines. we'll hold up here. gold holding around 1,300 an ounce. sam walsh of rio tinto is here exclusively. we'll find out where he thinks the price of gold iron ore and those metals are going and what it means for the economy. >> another bad day for general motors. the government has imposed a $35 million fine on the automaker for his handling of the ignition switch flaw that caused certain models to lose power without notice. now our phil lebeau will join us with the story. the incredible video of phil in up of those gm cars when it actually loses power. it's amazing and frightening.

you'll get to sort of be in the driver's seat when this happens. >> and if you're wondering why 35 million. it's apparently the most the government could levee of on general motors. we'll talk about this piece of the story as well. where we stand in the markets heading to the final hour. the dow is up about 33 points. >> look at that, a raly. >> considering that's been a pretty flat session so far. meanwhile, the nasdaq is the one that's been the focus as of late. adding ten points. the s&p finally up, almost to 1875 for the broad market gauge. >> let's talk about it in the closing bell exchange. diana garnett and jeff taylor and ben willis trades on the floor here of the new york stage for princeton securities group and our own rick santelli. diana, i'm going to start with you. a very quiet day though there's a mini rally going on. after all the volatility, why the quiet day today? >> expiration, triple witch or

quad expiration and most of the plain vanilla firms tend to back away, believe it on the, so you see a burst of volume which is skewing some of the technical numbers so a burst of volume on the opening because of the settlement of options and you can see the same thing on the close, but for the rest of the kay you tend to see most of the big players stay away and be on the perimeter, buying or selling if it reached a certain mark but not actively trading during the day. >> you see the charts that reflect that as we've had sideways move through much of the trading session. >> equities this week have been up. they have been down. rob morgan, if you're to summarize for us what we've learned thus far, especially -- >> rob is not here. jeff taylor, i'll put this to you. what have we learned from equities in combination with the big move in rates this week as well? what do you think? >> i think obviously it's a very solid week. the thing that actually was a big game-change they are week was the housing market, ffha

announcing the huge opportunity with the gses and lenders. lenders can now submit their loans and have them quality controlled by fannie or freddie, and they have zero repurchase risk, so if you think about that, as we move forward, that means ultimately there's a new shift. instead of having loans out there that may come back for years for purchase risk, they can be taken day one, a big game-changer. >> funny you bring this up because there's a hot debate over the future of u.s. housing and to the extent to which fannie and freddie are in the market, supporting the market and all of that, so is it fair to say that all of these developments have meant that effectively the status quo with fannie and freddie before the housing crisis is the status quo today? >> i think it is. i think fannie and freddie have done a great job coming through the turmoil. they are obviously very profitable right now. >> big deal, profitable. >> is that rick santelli? >> he's warming up. >> go ahead, rick.

>> know, i want him to finish, let him get it all out. >> okay. >> extremely profitable and right now understand 85% of the loans go to fannie and freddie and with the new moves by fhsa as we're moving down the credit card and looking for higher ltvs, the fact that banks can send right to the gses is better for shareholders and investors so we don't have to worry about a potential repurchase two or three years down the road. >> rick? >> all right. you know what? they have been in conservativeship since september of 2008. i think it's a sham that we can't get these reforms done, and i think an entity in covership taking a more proactive role. ed demarco wanted to shrink it. his successor mr. watt wants to expand it so we're going to have what sub prime part two and i don't even care if it works out. nationalization is not in the fabric of this country and in

essence what the cut is describing with put-backs back to the banks and all the ratios being changed a bit is in essence the government underwriting housing. they have health care, they have housing. i think enough is enough. if housing can't stand on its own two feet and we can't move mortgages at 4.5%, there's a whole lot more wrong with the country than nationalizing and lowering credit standards. >> rick, look at -- hold on. 2009 to current right now. these books are privityine, so we have the bubble of the four-year period, the last four years the lowest delinquency rates in the history of the mortgage industry. >> good, then it should be great to turn over the profit sector and reform demand. >> that's a solid investment. >> if it was so solid why can't we get it off the books of the taxpayer? >> exactly. >> to who? >> it's got to come back into the market and right now until the regulations -- >> of course there's no capital market. the government comes in, takes over the space. whether it's student loans or

housing, you're not going to nurture any private label mortgages in that environment. >> it's a perfect example of government and how they shouldn't be in business. on paper the idea of fannie and freddie were perfectly designed. when the execution went -- when it allowed to grow and became the piggy bank of every president going back generations. >> don't forget barney frank, part of his piggy bank, too. >> all part of the government process, it's not a private enterprise. >> i just want to hear what you think about this as well, because the problem is forget who all contributed to it. where we stand today is in the following situation. if we try to get rid of fannie and freddie everybody's home value is probably going to decline. >> it's been six years, kelly! what do you mean on the dime? what have they been doing? >> i don't think that's going to happen. >> taking it for what it is today, for what it is, what do you do with it now, diane? >> apologist for the government. >> ladies, this is their turn.

>> there's almost no situations where the government has the opportunity to step in and perform in the long run better than the private sector. >> never happens. >> it never happens. if you think about companies like the united states postal service versus, you know, federal express, ups, all kinds of opportunities for the private sector to step in and do a much better job, but lending into the private sector, lending to households, is not the big story that we really should be focused on this week, certainly not in isolation. there's also been a lot of lending that's gone on, smaller notional amounts that have been going into small-cap companies, so i think that's another key. >> that's the subprime. >> that's a great point. rick, go ahead. i understand the frustration. >> you know what keeps me up right now it is certainly the underperson formance of the russell 2000. there's no reason that the russell should be underperforming this

dramatically for this long. >> let me move on to that. >> ben willis, you've been following that like a laser beam. why the russell 2000, why has it performed the way it has? >> people -- most of the viewers, most -- i should say most of the non-viewers of cnbc, the general public, the "usa today" viewers, only look at the s&p or the dow jones. the fact of the matter is the russell 2000 is probably one of the most minimum wage or indices as far as pension fund is related to so the money movement we've seen, and it was evident the other day with the mutual fund flows, the money that's been coming out and flowing, one -- the canary in the coal mine hauls has been the russell 2000, the s&p, within those you see the devastation, the bank index, in the home builders index that barely got a bounce or a reprieve from the good numbers we just happened to post on the multi-family sales numbers, so the russell 2000 has been a great indicator of where the market is heading. if we were looking at it as an

idea of the perfect sector correction, so without really taking the legs out of the whole market that was the fear yesterday. the idea that the whole market will be able to rotate out of sectors into safe havens. seen utilities perform well in that idea, but that we had a little bit of a scare yesterday when we saw i believe the selling was motivated not by americans but by our european counterparts. >> right. >> that cause that had downdraft that we saw, but if you want to get an idea where the market is headed on any given day, watch the russell 2000, that will give you an idea. we had a bounce off our lows the other day, well ahead and before the s&p or the dow bounces but it's a great trading tool. >> mid-part of a recovery is also a great time for small cap because this is exactly when large-cap companies stop having as many opportunities as they have and they want to go out and buy growth. small caps is even a better time now. >> glad you could make it. you want to jump in here.

>> yeah. i'm agreeing with diane. >> you like the small caps more right now, don't you? >> i do. i like the small-cap space. we had this risk off period of time during the bad winter. diane is absolutely right that as we continue to go through this bull market, we're going see a rotation back into small caps, and i absolutely agree with diane on that. >> you're calling a bottom here? >> absolutely. >> yeah. >> now is such a good time to be in the market, but if you have to be in the market, be very specific. small cap has been underperforming dramatically. that's where i'd like to place most of my assets right now. that's where i think we'll have the biggest bounce is in that small cap space. >> we've been in a market of stocks, not the small cap markets. the russell 2000 a big example of that. the other day when we were selling off 200 points and there as big panic. big investors make money when everybody else is losing theirs. when stocks go on sale there's a

run for cover. that's the opportunity to be buying. i'm not calling a bottom or top but that's when you should be looking at the names you're comfortable with. a guy by the name of peter lynch started a little fund with that idea. buy what you know and save some money to buy them when they are cheaper, a pretty good investment stock. >> i certainly hope there are more small-cap buyers than tool buyers at sears. >> got to go. thank you all. >> rick, i still feel like this housing thing is unresolved. >> we do have a little bit of a rally under way relatively speaking. after practically a full day of unchanged, now we're starting to move higher here with the dow up about 50 points. >> and what you're seeing there is one piece of a heated debate about the housing market and if it is finally getting its mojo back. mortgage insurance giant genworth financial ceo will give us his take on the housing

recovery or lack thereof. >> and biggest companies disclosing their holdings. >> also general motors getting slapped with a $35 million fine for failing to report an ignition switch defect in a timely manner.

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some slight gains from the major averages right now. the dow is up 47 points just off a high that was set moments ago with the s&p up six, the nasdaq up 18 and we've included the russell as we've established this week. it has been, as ben willis suggested, a leading indicator for the rest of the market and we're watching this on this option expiration date, by the way. >> a lot of different things going on but a decent rally

shaping up meantime, billionaire investors, including warren buffett filing disclosures about their latest holdings and dominic chu couldn't help but notice some similarities there. >> bill, kelly, there are fanatic elements especially with a couple of different stocks and trades in those stocks and let's start off with a stock in the headlines again for all the wrong reasons. included general. general motors, they have agreed to pay that hefty $35 million fine. phil lebeau has been talking about that related to the recall of vehicles because of the faulty ignition switch. there's a slew of money managers that have either trimmed or completely gotten out of their stakes in general motors. now, george soros and warren buffett here have trimmed their stakes andy will orrin cooperman, david einhorn among the names that have completely sold out of general motors as of the end of the last quarter, march 31. the overlaps are happening on the buy side. take a look at stocks like

american airlines. dan loeb and carl bass taking over new stakes and appaloosa's david tepper and john paulson both are increasing their shares of american airlines stock as well so airlines a common theme for a couple of these big investors. then there's a name that a lot of whales are really pounding into, and we talked about it yesterday as well. this is verizon. one of the most interesting trades so far this -- this 13 f season, warren buffett, berkshire hathaway, that 11 million share position, john paulson, 8.7 million shares and dan loeb at 3.3 million shares. on the other side, david tepper getting out of 4,000 shares of verizon. still, very big names and very interesting to see where that verizon trade goes from here. back over to you. >> thank you. >> and let's get some reaction now with the former s.e.c. chairman harvey pitt, harvey,

good to see you. >> welcome back, harvey. >> good to be with you. >> what dom is getting at is herding behavior that we see when we look at the filings in every single quarter. what point do the number of filings trigger the s.e.c. notice? where do the rules stand on this today and in your view do they need to be revisited? >> well, i think this has been a recurrent theme . in the early '70s i added with others the s.e.c. institutional investor report which was looking at whether there was conscious parallelism on the part of major investors. it stands to reason that people are very bright and are well resourced they may well come up with similar investment trends, so the mere fact that we see a confluence of investment decisions does not by itself suggest that there's anything wrong.

on the other end, if there were collaboration. >> right. >> and communication, that would be a very different kettle of fish. >> but how would you prove that? >> well, it is difficult, but what you would look for are communications and trying to get at the substance of whether people were trying to move simultaneously or collaboratively. it's highly unusual with respect to most portfolio managers, many of whom go to great lengths to prevent others from finding out what their positions are. >> what's the lag time on the 13-f files? i mean, from the time they take the position until it has to be revealed in those s.e.c. fil filings? >> the results are due quarterly and then 45 days after the quarter, and what winds up happening is that by the time these reports come out people

may have changed their entire direction in a particular stock or altered how much they own. >> and the reason i ask, the reason i ask, and i don't mean to interrupt. is that a legacy going back to a time when it took that much time to collate the papers and figure it on. we're in a technology age where there's instant access to information now. should we be revisiting that lag time to allow for a more timely revelation of what people are owning right now. >> that's an excellent question, and this was -- these time frames were sent 35 years ago. >> in the quill pen and parchment era, so, yes, i think they need to be looked at again. it's a -- it's a slightly double-edged sword. on the one hand you want to get more information out, but on the other hand it will coerce some people into changing their own views when they see a lot of

other people making certain investment decisions. >> and that, harvey, is one last thing that i wanted to ask, to go back to the original discussions about an idea, because the essence of what people do on wall street to some extent is talk about ideas, share ideas, so where does the s.e.c. stand on something let's call it relatively formal like an idea dinners. >> idea dinners have become very popular. most advisers tell their clients be very, very careful about this. it's one thing to say, for examp example, i think technology stocks are on the rise. here are five or six or seven good ones. it's another thing to say i have focused in on pit company and i think everybody should be in there buying right now. i'm going to take this to the maximum i can get it. >> is it the naming of a specific company and would a

name like verizon count, or is that too big to matter? >> naming a specific company is not per se problematic, but it starts to get you into very dangerous territory and look at if you're trying to produce market movement to help your own position. >> thanks, harvey. good to see you. have a good weekend. >> my pleasure. >> harvey pitt, the former s.e.c. chairman back when they did have pen and quills. >> i don't think it's the last time we'll talk about this issue. >> no, no. >> 35 minutes to go in the close. last day before the trading session. looks like we could be going out with a little bit of a rally in contrast to something we've seen the last few weekends where there's been more nervousness in geopolitics and the vote in india's election, looks like it's supportive. >> some are calling the newly elected prime minister the ronald reagan of india. a report on that, and find out how you would invest in india if you think the new leader is --

is going to be that good for business coming up. >> plus, later in the show i'll speak exclusively with the ceo of mining giant rio tinto about the prospects of gold, iron ore. the stock a little bit lower but more than 20% over the past year. find out if you should buy the dip. we'll be right back. with fidelity's new active trader pro investing platform, the information that's important to you is all in one place, so finding more insight is easier. it's your idea powered by active trader pro. another way fidelity gives you a more powerful investing experience. call our specialists today to get up and running.

welcome back. all green today. yesterday was a different story, and the dow is adding 35 points

this hour. still below that 16,500 and the s&p adding 5 points, the nasdaq on a general, shall we call it rebound, bill, is it that strong, maybe? >> we've still got 35 minutes. >> yeah. it could hit rebound territory. >> boy, what a rebound in india. the stock market there overseas, india's newly elected prime minister has generated a lot of enthusiasm in that stock market. seema mody has the latest for us there. >> that's right, bill. the rally in stocks is due to the newly elected prime minister mode irs. india is the best performing market, up 13.5% this year. modi made economic reform the focus of his campaign and that's what has won over citizens. on whether indian stocks have further room to run, that's a big question now. money managers tell me it really depends on whether modi can deliver on his promise of reforms, specifically in the infrastructure and retail space.

initials fear that modi was pushed back from the parliament has been calmed as bjp, his party, seems to have won the majority of seats, but some investors urge caution. the ceo of private equity form kkr's india arm warns that india investors may have overplayed stocks saying that growth in india can revive pretty quickly in the short term with sentiment change but a real sustainable uptick will only follow later if earnings growth surprises to the upside. >> something to watch out for. >> and if you believe india's new leader will be a boon for business what's the best way to put your money to work? >> let's talk about that now with our guests. guys, good to see you. thank you for joining us. >> thank you. >> chris, is this one of those situations where the indian market is on our radar screen and suddenly it's too late to invest? i mean, it's had a great run so far. >> it has had a great run. our view is i would term it as cautiously optimistic on india,

certainly one of our -- it's our favorite of what you call the fragile five, but, you know, if you look at it on a valuation basis, trading just somewhere north of the world average which doesn't to me appear onerous given some of the positive cat lifts that we've seen. i do think that the prior -- the comments from your commentator do ring true though. i think over the next couple of years we'll see actual reform happen in order for this market to continue to lead. >> paul, it's remarkable how far we've come from the summer when the talk was about the rupee collapsing and inflation in india and the central bank governor and now modi at helm. how much of this good news is priced in, and if people still want to get involved, where should they go? >> difficult to know how much is already priced in. my view that probably too much is priced in. reminds me a little bit of japan last year with their new leader. markets took that optimism much too far.

i don't think india is to that point. still could have a couple of months of rally while the modi government prepares its reform plan and i think there will be pullback as people take more realistic expectations of what can be done, so for the meantime we would prefer to play india to a broadly diversified fund and many hold india as high single digit weights in those index. we think that's appropriate for now. >> chris, how do you play it then? do you try and buy individual companies, the etf, what do you do? >> well, our model at river front is to employ a rotation strategy using the etf in the international space and much like paul mentioned, diversified etf is how we do it and what we're choose right now is an asia x japan atf. it gives you above benchmark weight in places like india and some parts of southeast asia we find intriguing, but it gives you the north asian places that are really out of favor right now and appear on our models to

be pretty deep value, places like hong kong, korea, even as china as many problems as they have so you're kind of getting -- in our mintz you're getting asia including india is really part of the attractive part of the emerging markets right now. >> paul, the industrials, the financials, are those areas that you think show the most opportunity here? >> i think actually for the next couple of months you may see the entire market rally just on this sentiment indicator, but i think after the next couple of months, you know, you may still have a monsoon that is negative for development for agriculture and push food prices higher so we may see some inflation which i would tend to treat as a negative factor for financials going forward. >> see how long this honeymoon lasts. >> gentlemen, thank you. good weekend. >> thank you. >> pleasure. >> see you later. heading towards the close here. with 30 minutes left the dow is up 35 points. it's expiration day and some volatility.

have had some after a sideways day. suddenly in this last half hour the dow was up 50 point and now we're coming up that high right now. >> a tip of the hat to jim grant who was on this program months ago, as part of his latest newsletter, he was pounding the table for, and he liked the electric utility grid plays there, for example, so stocks versus bonds. let's talk about this country and which is a better bet. seema will join us and dom chu, they don't see eye to eye on this one. their heated debate coming up. >> and coming up, genworth financial ceo on the markets, the economy, on housing, a lot of things. he's ringing the closing bell today. wait until you hear what's keeping him up nights. don't touch that remote.

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welcome back. 25 minutes left. the dow holding near the highs of the session. we just asked the staff during the commercial break here how the dow has done for the week. after all the volatility, the big up day, the big down days, two consecutive down days. what have we done, down half a percent right now? for the week. >> well. >> we're going to land back at square one again. >> start all over again on monday actually. >> why not. >> our next guest, by the way, is celebrating his firm's tenth

anniversary. it's been ten years since genworth financial was spun off from general electric, and he's here to ring the closing pebble coming up in a few minutes here. >> joining us now in an exclusive interview is tom mcnierny, president and ceo of genworth financial. welcome. >> great to be here. >> you're here to mark ten years. you guys have been through the ups and downs, especially during the financial crisis. tell us how business is today, especially on a day when we've been hotly debating the future of the u.s. hough housing market. >> had a very good first quarter, up 20% operating business. our u.s. mortgage insurance business helped by a slow but study improvement in the housing market and our long-term care business is making a comeback so we're very pleased with the first quarter. >> how do you assess the mortgage market right now? you say slow but steady. >> but think slow but steady. you know, the quarterly numbers have been up and down a little bit. decent employment growth the

last couple of months so that helps, but the refinance market is way down because interest rates are up. >> what do you say to those who say, gee, even at the record low mortgage rates we still can't see much of a rebound in the housing market, what do you make of that? >> i think it's driven a lot by employment, and there has been slower employment growth than we like. there's some pent-up demand, but we seem okay on the purchase side, but it's really the refi side that's slowed overall. >> can we talk about interest rates. if you want to talk about surprises this year, i'm sure you guys were among almost the unanimous consensus that rates were going up. look what's happened especially on the exest end of the curve. how does that impact your business? >> clearly we would be better off on our insurance side with rising rates. on the other hand, on the mortgage side, there's decent diversification, lower rates help. we did like most, our consensus for the year was around 3%, so we're not there, but we actually did do some scenarios where

rates would be flat if -- if the fed continued to be longer, so we're at this point with ukraine and all the other things going on, clearly we're in a cycle where it looks like rates are going to be flat to down for longer than we all probably expect. >> is that because the bond market is forecasting a slower economy than the stock market has been forecasting? >> i think a slower economy, and there are some macro factors. ukraine and other things i think are all putting pressure on the market. i will say on the other spread they have been very good so corporate spreads are down so that at least helps to some degree. >> just curious. look, there's a lot of things going on in the corporate tax base that may come out of washington. what do you think happens on that front, and when you see the news, granted it's not in your sector but about a pfizer and sop. other major companies, maybe a walgreens that will end up transferring your headquarters to save on the corporate tax. as a ceo, what's your stance on this? is there a moral obligation to

pay taxes and keep the money earned and invested? >> i think it's a balance. most of our employees are in the u.s., we want to see the u.s. do well. on the other hand, the u.s. has to be competitive. i think congress and the administration have to understand that with most of the world going in a different direction on corporate tax rates, we've got to be competitive or you're going to see more and more companies -- they also have an obligation to shareholders and investors to do what they can for better results. >> before we let you go, the other part of this, before we talk about the long-term care health care very much in the spotlight. what has obamacare done to that part of your birks and -- and, you know, the demographics i would think plays to that, but it's going to take a while as those of us baby boomers continue to age here, right? >> you know, the biggest challenge with obamacare is that most people thought obamacare as a cadillac covers everything. it doesn't cover long-term care, medicare doesn't cover it. 10,000 baby boomers turning 65. every day 70% will need some

long-term care services. >> have to roll the dice and decide whether we want that or not, and if you don't have a policy and if you don't have assets, the average nursing home costs around the country this year is a little over 87,000. if you don't have assets, don't have policy, you're going on medicaid, that's the only entitlement program that covers long-term care services. >> you've had to make drastic changes, today reigning that into your costs long term, what does that mean and what does long-term care look like in this country? >> it's been very much a shrinking market. used to be 100 long-term care providers 0 years ago. there's now 10 to 12. genworth is a leader by quite bathe but we need an environment where regularitiors have to understand where you can't take the 30-year risk on premiums and the biggest thing that we're pushing for is a more reasonable regulatory environment where they do allow smaller more modest rate increases sooner so you don't have to do the big ones as people get closer to

needing coverage. >> very good to see you. let me get you upstairs to ring the closing bell this afternoon. >> thank you. very good to be here. >> tom mcnierny, ceo of genworth, celebrating ten years, another company jettisoned from general electric just like cnbc. >> 20 minutes to go before the close. how is the market looking? >> the market looks this way, up 35 points at the moment. as we said, we're going out with a slight decline for the week, down about half a percent. >> yeah. it's been -- really the bond market has been the talk of the town this week, really truly has been. wiggles here on the stock side and the question is whether investors are better in stocks or bonds? seema mody and dominic chu will take a look at that next. >> and the big reveal on which million dollar vacation home would deliver the biggest bang for your buck. realtor to the stars dolly lenz joining us. wait until you hear where the winning house is located? with relooking at it now? could be. e

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welcome back. so what's an investor to do when stocks are getting hurt, even as bond yields are declining? >> seema mody here to make the case for stocks. >> and dominic chu pounding the table for bonds.

>> i'll start with stocks, a rotation out of stocks and into bonds, but given the selloff that we have seen, equities, kelly and bill, valuations have come down a lot which does make at least some stocks more attractiving right? second reason, rates are low and if there's one thing history has taught us when raise are low stocks tend to rise and third point, earnings have come in better than expected the first quarter. sales growth seen in a lot of sectors like technology, an encouraging sign and what experts say is a reason -- one of the reasons you should stay with stocks over bonds. >> all right. seema, here's what i got for you. there's a reason why interest rates are low, okay? the safety dance is what i call it for all you '80s music fans including brian sullivan out there. first all, we've got a questionable u.s. recovery in the economy. yes, there's some good signs and as steve liesman says there's bad signs as well so how do you play that? don't know what the play is. you go into u.s. treasury bonds. second, are there rate cuts to come into europe? maybe we're being competitive with them as well. if they are cutting rates they

could put a push to treasuries as well and third, geopolitical risk. let's not forget it hasn't flared up, but there are still tensions in ukraine, russia and elsewhere around the world. all of those provide an inherent bid, seema, to the safety of u.s. treasuries. >> so, you know, we talk about why people invest in bonds. one of the reasons is the yield and why invest in bonds when there's plenty of stocks, i believe around 150 in research, that has a higher yield on the ten-year. stocks are much more attractive because there's the prospect of rising stock prices if, of course, you pick the right stock. see a rally in bonds when investors are looking for safety but time river capital earlier this week said there are boring steady eddie stocks that act like bonds and witness consistent growth, so to that end there are perhaps stocks with bond-like qualities that could be seen as attractive. >> well, i would say this.

bond prices can also go up in value. that's what pushes the yields down, and there's a big reason why bond prices could go higher because the fed's balance sheet, it may not be as big as it used to be in terms of the growth of it, but it's still very massive. they are eating up every bit of treasury supply that's hitting the market and steve liesman looks at this chart all the time saying the fed balance sheet is getting bigger. can't find this many treasury notes out there so if you're underexposed you've got to buy them and pay a higher price. that may put a secular decline in yields at least for some time to come. guys? >> interesting. good job, guys. that's been the debate this week. where doug, right? >> and sometimes it seems to be the case. it's both or neither. >> right. >> exactly. >> right now stocks -- >> right now it's both. >> up 39 points. >> actually probably a little bit back above 235. >> after all the ends we went through.

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violence breaking out in turkey. police in the country have unleashed water canons on thousands of protesters at site of a deadly mining disaster. the crowd is reported to be up to 10,000 strong chanting anti-government slogans following the death of 280 coal miners in turkey's worst mining accident ever. bill? >> all right. heading towards the close. eight and a half left in the trading session with the dow up 41 points. joining me to help wrap up this week is michael block and our own bob pisani as well. bob, what have we learned? we were just saying we're coming right back to where we started the week. >> tremendous amount of

confusion on the debt, particularly with what's going on with the ten-year yield and what the drop the meant this week. what i saw in stocksy did not see a lot of liquidation of stocks. i didn't see big volume. i didn't see reports of mutual funds liquidating. this -- a lot of the action we've seen seems to be futures driven and that suggests to me that there's some macro funds out there that are just sort of taking down out there because they are not quite sure how to read the tea leaves right now. >> what did you make of it, michael? >> i would say the conviction is very low out there, not people panicking, very interesting to note that in the s&p 500 we held yesterday's lows. nice to see a little oovm but it's expiration date and what you're seeing here is we're setting ourselves up for next week. >> you want to apply that lack of panic if you look at the volatility index, the vix, down 5% this week. i would have sworn with all we've gone through it was up for the week. it's down. >> bear in mind i'm a little concerned about the vix because there's so many ways now to buy

protection outside of the vix. this is buying the s&p 500. you're buying puts, you can buy different kind of options products at different times and you can short etfs, for example. i'm not sure how good an incade ortho. >> not as much of a sentiment indicator has it has been. >> i think it's no. hesitate to say that because we use it so much as one but there's so many other ways to buy protection that you can hide that from that i'm not sure the fear level is not higher. i thit think the uncertainty level is we get much, much higher. to mow that would indicate a higher vix. >> we've been launching the russell 2000. i mean, if you're looking for an index that has a correction, that's the one there. why the small caps? >> it's really the small caps because they overlapped well with the growth and momentum that's gotten beaten up here. people don't believe in u.s. growth. i don't believe in u.s. growth. they will punish the stocks. you'll see that cascade down. right now i feel like the pain is starting to subside. it would not surprise me next

week to see a little up move in that. not sure about fundamentals but really more about flows and perhaps people were pressing the lows and getting a little greedy. that's a recipe for an explosion. see what happens. >> bear in mind the s&p, the small caps are small caps. if you add up the total market cap of the russell 2000, it's a few dozen of the s&p 500 stocks. bear that in mind. i hate to say that, everybody -- we talk about them as equals, they are not at all. they are small caps for a reason. the s&p 500 is 1.3% below its all-time high. >> stay there, guys, for just a second. over to dominic chu with a quick market flash. >> i mean, this is debacle of the day, right? we've been talking about world wrestling entertainment all day now. the stock is getting hit hard by investor. the company says its new online network won't make up for lost pay-per-view and streaming video on demand at least until 2015. as a result the company will host a conference call on monday to discuss its 2014 and 2015

business outlook. that stock, again, off session lows and still 43% to the downside. you can see, bill, why one of the smaller cap stocks wants to hold a conference call about the future of its business. back over to you. >> oh, boy, and they get to wait all weekend to learn why it's down 43%. that will be fun. people will be sleeping well this weekend. thank you, dom, we'll see you in a little bit. we'll take a break and come back with the closing count don and see how we can close things out for the week and after the bell the circumstances surrounding the dismissal of "new york times" editor jill abramson has taken a riveting turn because she was paid far less than her predecessor who was a man for the same job and now the most powerful senator in the country says we need new laws mandating equal pay. much more on that story the next hour of the "closing bell." you're watching cnbc, first in business worldwide. and a low sex drive, i had to do something. i saw my doctor. a blood test showed it was low testosterone, not age.

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for the week. also a decline of half a percent, but this has been hovering near correction territory meaning down 10% from its most recent highs, and then there's the ten-year, fascinating week as interest rates plunge. the yield on the ten-year yesterday touched 2.47%. we're back above 2.5 boston. michael block, what do you make of that, and where do you see interest rates here? >> look. >> i don't think they are going to tighten this. >> i think the focus on asset prices, wanted to make sure there's no volatility and everything that is in with the positioning, the chase is on. >> that's for sure. >> given -- down half a percent. given the uncertainty about what the decline in volume yields is, the economic data, it was fine this week. that was an excellent outcome,

believe me. >> i guess bulls would take it, wouldn't they? >> thank you, michael. >> see you later. have a good weekend. >> we do go out with modest gains and virtually unchanged for the major averages, but stay tuned. we'll handicap the week to come and the ceo of rio tinto on the price of gold coming up on the second hour of "closing bell" with kelly evans and all-star company. have a good weekend, kelly. >> thank you, by, and welcome to "closing bell," everybody. to round out this friday, i'm kelly evans, that is was closing bell and here's how we're finishing the day and the week. let's start with the trading session. a little bit of a rally just in the last hour with the dow going into the weekend adding about 46 points, just under 16,500. noult nasdaq, again, that's one we've been watching this week. it looks like it will finish up almost half a percent, 21 points or roughly all of that. the s&p 500 up .4 or seven points.

the russell cues and we'll talk about what's happening in the bond space all week. joining me is steve wood from russell investment, elam and our very own sarah eisen and robert frank. steve, just so we can kind of throw you, haze you for the first time on the panel. what did we learn this week? >> i think we learned the markets are going to be volatile this year. when you look at equities speed, the russell 2 was up almost 39 so we're looking for a more normalized year. more strict valuation like we saw with smaller caps. not surprising that the market reset a little bit, but i think a lot of the action is happening right now in bond space. you know, we've got 29.5% on the ten-year. i think there's a lot of volatility, not only in equities. >> doesn't seem to be any volatility in equities. people are talking about a crash in the vix, and i like your use of the world normalization, but are you basically saying what

we've seen this year is just reversing some of the aspects of 2013, is that how it looks. >> from a pricing perspective and what we've seen in the 2014 the year of value dade. 2013 is a very, very strong year and what we've been calling for is an environment where the fundamentals need to come in and justify the multiple expansion of the market run that we saw last year so economic fundamentals, cash flow fundamentals and we think also interest rates and policy fundamentals need to come in and justify that run. >> elam, we got decent news on the earnings front. we had a pretty strong quarter when things are all said and done, i think up 5s year on year. what about the market fundamentals? what is the story? can anybody figure it out? >> i think it's really a muddled picture and the problem with having a data-dependant strategy is nobody can understand where the data is going. there's not a clear direction that's evolving. we had a situation today where we saw housing starts, great

number but primarily led by multi-family. consumer sentiments down and a lot of job market was up so you have a really confusing picture and that's going to delay the fed's decision as it figures out what is a perfect kind of rate. they want to make sure they have a clear narrative. they want to make sure that the economy is on strong footing before they decide to make that rate hike. >> joining us for more on today's market action we have chris whalen. can you make sense of what's happening in the bond space? >> bonds are still weak. look how many of our colleagues have 4% targets on the ten-year, it's not going to happen. housing is slowing down. some of the data suggests that house prices are actually starting to fall after two years of an upward move, so i think i agree with the last guest. we don't really have signs of a strong economy, and i don't think the fed is going to raise

interest rates for quite some time. >> i don't know if you caught this, chris, but larry kudlow told you and i this week he doesn't think the fed will raise rates in his lifetime and we know larry is very healthy so that was not a personal statement. >> there's so many analysts who are trying to put together a bull case again for housing, right, and they keep talking about household formation, but we don't have strong jobs. we don't have strong consumer incomes, and those are the key drivers. in fact, if you look at markets like california, we have piggyback loans. we have people who are trying to move up to a better house, and they can just barely make it because of income constraints. >> what's interesting i think is you have a very confusing picture. have you a broader landscape of stagnation with pockets of speculation, and i said this week looking at the art market where you had picassos, dega, monets, the classics not doing well but the momentum stocks,

the francis bacon and christopher wolf, those things, 60 million, 80 million, the wealthy want a safe place to put their money, but art is very illiquid, not so safe when things go bad, and i just think you have these weird dislocations. >> and then those in cash flows. >> no cash flows, in the flight to safety you're getting pockets of overvalued assets and people are expecting this immaculate correction where just the bad things get taken out, and, unfortunately, it doesn't work that way. >> there's no demand for credit. >> what are you talking about? >> what are you talking about? correct me if i'm wrong, we're in the middle of a credit boom, in the fixed income space. >> sure, companies are refinancing. >> i'm talking about consumer. >> okay, fine, fine. >> the auto lending sector is

up, consumer credit card spending is up. >> because they have expanded to subprime autos, that's why. housing, refis and purchases, a quarter at where we were a decade ago. >> and public sector debt is huge. >> just to talk about roughly where we stand this week. this wasn't at the sounding of the bell and close to it. in terms of sectors, looks like the leader was in teleconed a 1% and tech was actually up .8%. health care was next. in terms of the lag-yard, financials were the worst performers this week, down 1%. >> right. >> you could throw energy down there as well. >> a lot of downgrades from seller services in the mortgage sector, so -- >> the winner of the week was the bond market. it was the treasury market. you saw a historic rally with the ten-year yield at 247 for

the first time since back in october. what we learned this week is that there's still a voracious appetite for u.s. government debt whether it's coming from central banks, whether it's coming from investors, whether it's coming from positioning and everyone being on one side of the trade, and whether it speaks to the u.s. economy or not, the bottom line is rent, telecom, utilities, dividend stocks are going to be more rewarding if investors are looking at the current landscape. >> twice as many, and, steve, can you talk to this as well. twice as many companies in the s&p 500 yield more than the ten-year than they did in january. >> let's not forget what's happening on the other side of the pond. you know, the european central bank is setting up the plumbing and the wiring, the basic bullwork for their version of a stimulus, policy, if not an outright quantitative easing so that really changes from the u.s. being in policy, quantitative easing, a global phenomenon. >> it's also very pullish. >> don't you think it's also

very bullish, european stocks at six-year highs this week, the euro weakening. as long as central banks and the top three are basically an easy money mode, that underpins this rally. >> i think ultimately, and that could be from a global perspective more bullish and in europe they disinflationary pressure, and that year was very, very strong getting up to 1.40 so the european central bank, to keep that economic recovery going. >> jim vogel made the point this morning and it's a good one to come back. there's been a debate when the fed was buying all the bonds that it didn't matter how much they bought. the answer today increasingly seems to be yes, that in fact it hasn't slunk the amount of bonds out there for people to trade so much that maybe that's why rates are staying so low. >> there's an interesting thought out of the atlanta fed that characterizes the different levels of qe. qe1 did something primarily focused on credit and qe2 was

focused on treasuries and qe3 was merely a signaling effect on what they concluded, and the purpose of it is to convince the market that the fed is going to raise interest rates so the actual level doesn't really matter as long as they are continuing to purchase those bonds. >> if you look at the signals coming from politicians in washington today, what are they talking about? housing? not just janet yellen. i'm talking about everybody in the obama administration. they are doing everything they can to pump up housing before the november election, and there's not a whole lot we did k do. qe.do a lot to help housing. >> such a fascinating point because it goes back to the debate we were having the the top of the last hour is if the housing system today, the involvement of the government, the backing of fannie and freddie is effectively the status quo we had before the housing bubble collapse, financial crisis, is that progress or is it not? >> it's not. you know what the thing, is kelly. everything we're doing on the policy side right now is hurting housing. i mean, think about it.

the fed in new york and my friends at finra are getting set to impose margin requirements on the markets for hedging so they will increase the cost of lending even more than it already is. we know from first-quarter earnings that banks are losing money on every loan they make so think of what we're doing in terms of policy and how or why we should be surprised that the housing market is weak. >> between that and what's happened with interest rate no, surprise that it was the financials lagging this week. see what happens come monday. for now, thank you, chris, really appreciate it, and coming up, general motors paying $35 million in government fines for being slow to recall cars with defective ignition switches, cars linked to the deaths of 13 people and this after the automaker recalled nearly 3 million more. up next we'll discuss how gm can recover from this crisis. you'll see our phil lebeau drive a gm car that loses power unexpectedly and see what

happens to him in that situation. also. was the "new york times" executive editor fired because she complained her male predecessor made more money than she and senate majority leader says harry reid says that's proof we need more equal pay legislation and dracula's castle is on the market and if you want to buy it, be prepared to buy a lot of money. you're watching cnbc, first in business world wide. a, we beliee if healthcare changes, if it becomes simpler... if frustration and paperwork decrease... if grandparents get to live at home instead of in a home... the gap begins to close. so let's simplify things. let's close the gap between people and care. ♪

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welcome back. general motors hit with a big fine from the government over deadly ignition switches. phil lebeau has the latest on this. phil? >> reporter: a record fain of $35 million and some people are looking at this and saying $35 million. is isn't that a slap on the wrist, the maximum fine allowed by the federal government, and also nhtsa saying it will have access to all the internal investigation information that general motors is uncovering from its interm investigation and it will provide regular updates to the d.o.t. on safety issues. again, all of this centers around the faulty ignition switches which are part of 13 crashes. 13 fatalities, 31 crashes.

the federal government says gm knew about the ignition defect as early as 2009, and it says gm engineers, executives, they were aware of the defect so that they didn't name names. here's the secretary of transportation. >> gm told us then what they told us back in february things no doubt would have proceeded differently, but the fact remains gm did not act and did not alert us in a timely manner. what gm did was break the law. >> in response to the fine, general motors ceo mary barra says we've learned a great deal from this recall. we'll now focus on the goal of becoming an industry leader in safety. shares initially traded much lower in the session and then recovered throughout the day and there you see shares now trading exactly at $34 a share. by the way, rbc one of the many firms saying that this is just the first domino to fall when

you look at this entire recall situation. kelly? >> and phil, some. lawyers of the families are putting out statements that indicate the same thing. thank you and stay with us for more on what this means for gm going forward. let's bring in auto analyst peter di lorenzo from autoextremist.com. peter, good to see you. seems what you're saying is this is the time to effectively break up gm and spin out the brand. >> well, i think gm has gone from being government motors to the company that didn't care enough to deal with this problem when they should have a decade ago, so i'm questioning what does the gm brand mean to anybody anymore? i would take chevrolet and cadillac and split it off. i would take the two truck divisions, gmc and chevrolet, make them one truck company. buick does all their business in china for the most part.

those companies could stand on their own. i'm just afraid that gm is a tainted brand at this point. >> phil? >> well, all of those suggestions from peter came up when general motors was going into bankruptcy, how do you break these guys up and is it better doing this way? first of all, it's not going to happen, and second of all, when you look at the sales you have to look at how the brands are doing and they are up since this recall crisis started. a lot because the recall involves old models no longer in production. breaking up this company, great idea on paper but won't happen in reality. >> i have a question on what comes next for gm. don't they still have to deal with the justice department investigation which led to toyota having to pay $1 billion-plus fine. >> that's the big fine out there. if the doj found gm broke any criminal laws you can bet that the blueprint from the toyota

case, the fine could be substantially larger for general motors. that's the investigation they are worried about. >> we've had senator blumenthal calling for a compensation fund that he thinks could he had off some more egregious signs. is there more from where you sit of doing that kind of thing? what are gm's options here, in your first scenario? >> well, you know, let me get back to something phil said. of course, gm won't be broken up. that might be a good starting point for gm. the problem is gm has not been able to get in front of this at all. mary barra, the ceo, has said repeatedly they are going to evaluate and investigate and they will deal with it as they go. well, they haven't been able to get out in front of this and they have a major image problem so anything they can do to make it seem like they are being responsive and getting out in front of this would be a good thing. >> phil, i just have a question. peter's point is that this brand

has basically been totaled by this incident. when you look at what dealers are seeing right now, do you think they will get through this, or are you seeing a real impact on consumers? >> not seeing an impact in terms of sales or traffic in the showroom. as strange as this sounds, people look at this and say those are models from 2003 to 2007. i'm not looking hat that right now when i go into a chevy showroom and, therefore, it's not impacting the desire of some people to at least look at general motors vehicles, let alone buy them. >> peter, thank you for your take. >> ironically enough, gm is building the best cars they have ever built in their history. >> well, that would argue that they are doing something right these days, as you say. good to see you this afternoon. have a good weekend. phil, while we have you here, this sunday, this weekend, very important. you have a compelling documentary premiering sunday evening about gm called "failure to recall, investigating gm." tell us just briefly about it and did you bring a clip from the show as well? >> i did, and at one question i

get from a lot of people is some of these vehicles are out on the road. what happens if your car has this happen to them in terms of the ignition slipping back into accessory mode? it is every nightmare -- every driver's nightmare. you don't want that to happen, and what does it feel like when it does happen? we went and talked to the folks at "consumer reports," and they gave us a chance to experience it firsthand. take a look. >> jake bishop, director of auto testing at the nonprofit consume "consumer reports" is showing us 2.6 million gm cars are being recalled. how easy is it going to be for me to accidentally turn off the ignition and put it in accessory. >> just pull on the keychain. >> i deliberately steer the car back and forth. >> the power steering is gone. >> but there's a loss of tension power, power steering and power brak brakes. >> it is not easy to avoid the coins. >> i did it, but it's not that

easy. >> how much effort did you have to use in the steering wheel to get around that? >> quite a bit. >> the flaw in the ignition system makes it possible to turn the key off consistently. on the road it can lead to an anxious moment, sudden surprise or worse. >> and that's just a taste of what we have coming up on sunday. it really was eye-opening to go up there to "consumer reports." >> it's incredible, phil. that -- that was at what speed as well, because it didn't look like you were going that fast? >> tried it once at 35 and did it also at 55. remember, we're in a controlled environment, a test track. imagine if that happens happened to you and you're on a road going 55 with traffic, all the environment of being in the real world, a far different experience for us than compared to the real world. >> don't miss a moment of a cnbc original "failure to israel" that premiers this sunday at

10:00 p.m. eastern. >> copper considered a pretty good barometer for the economy. the ceo of mining giant rio tinto and scrapbooking sit pinterest valued at $5 billion. we want to see if this is worth that kind of money or is this a sign of another tech bubble forming? your thoughts on that coming next. ♪

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selloff. dom chu rounding up some of today's big movers for us. dom. >> a good day for the department store company. check out jc penney, nordstrom, dillard's, all moving higher after reporting encouraging quarterly results, so a nice space for those retailers. two railroad operators, we're talking union pacific, a two for one split and kansas city southern is pushing for an upgrade over merrill lynch. darden restaurant, the stock is losing ground after they said it would sell its red lobster seafood chain for $2.1 billion in cash defying pressure from activist investor starboard value who opposed the sale, that stock finishing up 4.5% overall to the downside. kelly, back over. >> dom, thank you. infrastructure innovation, it's on the rise and some new reports indicate that jobs are expected to increase there by 9% over the decade and maybe the key to sustainable global growth. joining us now exclusively, sam

walsh, the ceo of rio tintors. sam, welcome. >> thank you, good to be here. >> naturally you guys are huge in irish ore. more infrastructure, presumably used a lot more of those materials but where in the world specifically do you think your company and others can play a role in building out key infrastructure needs? >> well, as the projects are all around the world, in 45 countries and major developing countries, mongolia, guinea, mozambique, madagascar. these are areas where we have nation-building projects that we're very focused on and infrastructure is a key element. >> do you think the private sector can now play a key role in nation-building, especially in some of these frontier markets if you want to call it that that has real trouble with stable governments. >> i think it can. in the world as it develops, it needs the commodities that we supply. importantly, however, there are things that need to change that

would encourage this, and the b-20 and g-20 meetings in australia are an important part of this. setting frameworks and eliminating corruption. schemes to improve and encourage investment. these are important elements to help us work in developing countries. >> certainly, and at the same time one of the biggest things that matters. your company is the price of iron ore which has a lot to do with global growth prospect and seems to be a very bearish forecast lately as people the bubble boom, super cycle, many theme that's over. what price do you need for iron ore for your business long term to be profitable? >> well, our business is the lowest cost operator in the world, so regardless of what the price is, we'll be the last man standing, but importantly if you look at the -- if you look at forward development, prices and around the level we are at today

are going to continue for some time. if you look at forward curve, that's basically predicting around $100 a ton through to the time frame that these prices go out. but we're comfortable at that level. >> and so if -- if we fall though, because, again, the discussion is still saying what happens if all of these commodity prices are still structurally heading lower what. if we go to 90, 2080, to 75, what then? >> a lot of our competitors will disappear and the prices will bounce back up but seriously that won't happen. if you lock at the developing world and what is happening in china, still steady growth. if you lock at what's happening in southeast asia, middle east, south america, africa, the world is continuing to develop, and the world can't develop without the type of commodities that we supply. if the world is a volatile place, that's the commodity business. it is cyclical.

>> and stan, we appreciate you weighing in on this. stan walsh from rio tinto. >> there's an equal pay fight on capitol hill. senate republicans have blocked an equal pay bill and senate majority leader harry reid says firing jill abramson for demanding the same pay as her predecessor is why they should attack it. we'll get too that controversy ahead. also -- >> i am dracula. >> well, forget visiting dracula's house. you can actually buy it. coming up, we'll reveal the shocking asking price for this piece of history. no matter what kind of business you own, at&t business experts can help keep it running... seamlessly.

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welcome back. equal pay for women. it remains had a hot button issue especially for democrats. harry reid says the firing of jill abramson of the "new york times" supports the reason. one of the reasons behind the dismissal is she complained that her salary and benefits package were less than her predecessor

and brought this to executives. nbc's "meet the press" moderator david gregory following the story down in washington and joins us now. david, welcome, can you tell us before the abramson case what was happening with equal pay inside the beltway? >> well, it hasn't been passed. i mean, there's an equity in pay issue that's come up for the senate that democrats can't get passed that they would like to and you mentioned the majority leader reid in the senate trying to use the issue of abramson to move it along. it hasn't done that. there's some facts to nail down in the case of abramson at the "new york times" that reid was trying to wedge into the debate, but it -- that hasn't necessarily worked thus far, but i think, you know, i think the question here is apart equal pay and equal treatment for women who are leadership is a big part of the conversation today as well. >> in reading everything about this particular instance, that is underlying.

so it goes back to the piece in politico in april where the issue was raised between a fallout between her and got a lot of people criticizing him saying the entire slant of the piece was sexist, and it's interesting now, you know, the underlying everything that's happening people trying to figure out whether that played a -- how much of a factor that might have been. >> i just don't know, but i think that what we know based on the reporting we've seen so far is that there were a number of things at work here. we know that this was one issue, that she hired a lawyer with regard to the pay issue and she was trying to sort that out. there were obviously management concerns as well with her, as many as helm of the "new york times" at a critical time for any media company trying to navigate the waters that we're all in right now, and, you know, so this came to pass, but i think there's a number of these issues there that are going to come up.

>> robert frank, david. when you look at congress and how they are crafting this legislation, how do they account for all of the variables around pay and how do you ensure equal pay while keeping into account experiment, qualifications, quality of work? >> well, i mean, i think that's a divisive issue. i mean, i think, you know, first of all, even agreeing on the measurements of it and whether there are those disparities have been one thing that have held the legislation back. >> right. >> but i think these are some of the other variables that have to be -- that have to be considered as well, but i think you're looking at -- look, in the case that we're talking about now, regardless of what all the facts turn out to be, you know, you have a straight-up comparable position that gets looked at that would -- that would require parity in terms of the jobs that are being -- the job that is being done. how compensation is factored becomes a little bit more complicated, right, if you have pension benefits based on how long you've been at a particular job, that becomes something

else. >> well, i think all these gender issues are pretty much alive and well, especially in the year of the mid-terms, and how does that factor in with karl rove out with new comments about hillary clinton? >> well, i think a lot of these issues that come up about women in leadership positions obviously goes up against the larger backdrop of the prospect of the first woman president with hillary clinton should she decide to run. look, i think in this case, this has to do with efforts to disqualify hillary clinton, and i think one of the things that you have to look at is whether or not republicans are trying to disqualify her before she ever makes a decision in some ways to try to persuade her not to run, you know. she's going to be a formidable candidate if she jumps, and republicans have to be thinking about two things, one, what are the qualities they want in a candidate right now? they are trying to sort that out and do they have the candidate to go against the likes of

hillary clinton in a year -- >> exactly. >> when they stand a very good chance of being able to ride the tide of history and deny the opposite party a third term in the white house. >> david, i called you gregory. >> you're on a last-name basis. >> cnbc in the afternoon, gets very inform al. >> yes, exactly. >> david, thank you. our week is ending but yours in some way is just beginning. catch "meet the press" this sunday. david will be discussing karl rove's attack on hillary clinton's health and whether or not that is just the tip of the iceberg of what to expect if she does announce she will run for president in 2016. his guests will include the chairs of the republican national committee and senator claire mccaskill. >> it's been a hot and cold list in the markets and what does hot list have to say for it and it's the finale of our summer vacation home edition and if the beach isn't your thing, take a

bite out of dracula's castle. that up next. so ally bank really has no hidden fees on savings accounts? that's right, no hidden fees. it's just that i'm worried about, you know, "hidden things." ok, why's that? well uhhh... surprise!!! um... well, it's true. at ally there are no hidden fees. not one. that's nice. no hidden fees, no worries. ally bank. your money needs an ally.

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welcome back. it's happening again. one of today's panelists robert frank is burning up today's hot list. let's check this with managing editor adam wasler. is it art? >> that was yesterday. this time robert took a little more serious tack for us and

took a look at billionaire trains and decided the rich are smarter, found a stud freduke university claiming that so thank you, robert, for adding that to the website. >> made it sound like you had the theory before you found the supporting -- >> look, guys, you don't know how robert plays sometimes, but that story has been eating it up. robert, there's about 400 comments on the story right now. you may need -- >> i will read none of them. >> well, if you want to be able to sleep. >> i'm sure everybody is disagreeing. my number two today, actually i'm getting warm and fuzzy feelings towards india because i've gotten lots and lots of information about prime minister modi. the headline we've been going with most of the days is how he can't visit the united states, he can't get a visa. he was barred when from when he was a governor over hindu muslim violence and the story just moved in the last hour from the a.p. that president obama has

welcomed the new leader to the united states so the visa thing is off. throughout the day that election has gotten a lot of interest, and finally something fun to finish out friday. we put up an op-ed piece from one of our more humorous commentators about the dos and don'ts of playing hooky. >> hooky from work? >> that tells you the labor market is okay. do you think that story would have even existed in 2008 or 2009? >> i don't know. >> no. >> everybody has played hooky from time to time. >> well, his biggest hint to show you how things are changed, social media, on the beach and playing around don't post your status. >> much easier to get caught. >> allen, good to see you. have a great weekend. >> you, too, kelly. a scrapbook, speaking of social media, worth $5 billion. that's the valuation put on the so-called scrapbook pinterest after its latest round of fund

raise will. is it worth it or another sign of a valuation bubble, and on monday sugar ray leonard, the one-time king of the ring, is now fighting for kids. he'll join us for a knockout interview. ♪ ♪ ♪ [ tires screech ] chewley's finds itself in a sticky situation today after recalling its new gum. [ male announcer ] stick it to the market before you get stuck. get the most extensive charting wherever you are with the mobile trader app from td ameritrade.

welcome back. cnbc's million dollar home competition has been going on all day. we have seen seven homes battle it out to see which is the best bang for your buck. now since we're weeks away from summer, all homes are located in favorite summer destination spots. each show had two $1 million homes face off. the winners advance and losers eliminated and now we're down to the final two, jane wells versus dominic chu. take a look. >> this classic beach house sits on a tiny lot, about 1/20th of an acre, all house. not here to do yardwork. it measures just under 1,500 feet and been completely remodeled, top-no appliances, custom cabinets, granite and

radiant floor heat. this closet to be a nursery. it's huge. there's only one bedroom but a contractor will add a second for 55 grand but if you have guest have them stay up here. there's wine drinking and reading area and two-car garage in the back but you're here for this, half a block away in a town nicknamed mayberry by the sea and that's why they are asking $1.75 million? real estate is all about location, location, location, and this condo does not disappoint. it's in the heart of a hot downtown beach district, and it's just a short walk away from some of the best shopping, night life and dining in the world this. 1,450 square foot home has an open concept kitchen with italian marble, custom cabinets and state of the art appliances, all with a gorgeous ocean view. every day it's like a day at the spat in this two-bedroom two-bath property. with ample closet space and a

master bath featuring a massive shower and jacuzzi tub and relaxing is all about coming home and the beach is right outside your front door. all of this could be yours for $974,000. >> but i love those shades. now, earlier today we revealed that jane was in seal beach, california and dom in miami. now we have to figure out which of the two homes is the best bang for your broker. dolly, which home do you think -- forget what you think. which one is the best bang for your buck? >> the problem is they are both the best bang for your buck, both such great homes, coastal homes, on the water, offer almost everything you need and when i look at it and i say i'm the buyer i want to get my money out of this one day soon, i have to buy miami beach. >> miami over seal beach. >> where is seal beach? >> 35 miles south of los angeles. >> okay. >> so it's a great location, but

it's a house, so unless i'm living there full-time, right, which i doubt you're living in this one-bedroom house full time for a lot of people, it's a good vacation home. so it worries me you have to get someone to manage the house, manage the tennants and do all of these things. where in miami dom calls downstairs and says, hey, i'm leaving, get mow a tenant, send them all up and collect the rent check and send it to me and that ease of ownership is wonderful. >> two bedroom as opposed to a one-bedroom on the west coast. >> and comes in a little under a million. >> and that's under 700 a foot with an ocean view in miami. >> i wish i had a better concept of how good a bargain that is. >> such a great bargain. it's right on ocean drive. i don't know how dom found this, i have to tell you. kudos to dom. >> based on the property. they thought i'd be kind of tainted, bud kudos to jane, the

broker handling jane's house came up with an idea because she couldn't sell it because it was one-bedroom. she hired an architect and drew up plans. >> that's what she mentioned for the additional -- >> for the second bedroom,greate a second bedroom, cost me $60,000. i know what i'm in for, now i can buy that house. >> so we know about those two properties. while we have you, let's take a look at one more time the brand castle in romania. it's on the market for $135 million. >> yeah. >> oh, my goodness. >> amazing. >> best known for being the inspiration for dracula's main residence in bram stoker's famous novel. >> apparently someone stayed there for two months kind of as a jail and a 22 acre, 53-room jail, but okay. >> $135 million? >> i don't know the romanian market to really speak to it, but it is a unique property. >> yes. >> certainly unique property.

provenance speaks to something. >> we just had a couple hundred million dollar plus property sell in this country. >> exactly. you can see it as a hotel, as an inn, a fancy inn. right now they get 60,000 visitors a year. >> yes. >> you could really monetize that house on visitors if you can make a deal with the government, the taxes stay low and some other deal, wow. >> it was a fascinating point. it has a built in income stream to some extent. dolly, thank you. good to see you. >> by the way, her rod's just opened up a mortgage booth. >> they have a mortgage booth? >> opened up their mortgage booth. if you want to buy the castle, you can go to herrod's, get your mortgage and be done. >> sounds like a plan. thank you, dolly. great to see you. >> have a good weekend. >> pinterest is right behind twitter and facebook in terms of social media popularity but is it worth $5 billion or is that valuation a red flag of a tech market bubble? we have some great thoughts of

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the gap begins to close. so let's simplify things. let's close the gap between people and care. ♪ welcome back. so scrapbooking website pinterest raising $200 million in new capital. that puts the company's total valuation at roughly 5 billion.

is it worth or is it a sign of a bubble? here is what trep had to say. >> after looking up what pinterest is, i would say $5 billion a pretty steep for a bulletin board. rob tweets, pinterest is the real deal. needs an ipo so i can get in. and $5 billion for pinterest, $19 billion for whatsapp. it's all good fun with monopoly. safety dance for big cap. sounds like he's reading from a big book that many people have been saying as well. we're rotating into value, worried about growth. do you pin? >> i don't pin. >> i think i'm the only pinner on this panel. i'm really biased. i'm an avid pinner, and i have to say, you know, one of the problems i think here is that the people who are watching the show are probably not the demographic group who is using pinterest, who are suburban moms.

>> i'm pretty strong in the suburban mom cohort, no? >> the interesting thing is how much pinterest works to retailers. one of the things they found in terms of directing sales is referrals from pinterest actually are higher in terms of sales dollars than referrals from facebook. even though more people come from facebook to retailers, people spend more from pinterest to a retailer. that's a possible revenue stream going forward for the social media site. >> this is one to watch. steven, i just wonder, are you worried, and this would perhaps be more pertinent to ask in march but even today about valuations. the russell is trading at almost 100 on a trailing pe basis. >> valuations ultimately matter. when you look at theme stocks, that can be a little problematic, but we manage almost $260 billion globally. that's a multiasset globally diversified perspective. we're understanding what's happening in the big areas, equities, fixed assets, global

infrastructure, emerging markets. we don't spend a lot of time on one specific name. >> and we were talking earlier on "squawk on the street" with jim stewart of the "new york times." there seems to be a gap between the valuations that these silicon valley venture capital firms are investing and reportedly $10 billion for an uber valuation, $5 billion for pinterest, some of these names, these disrupters in the category getting big valuations, not necessarily correlating with what's happening at the nasdaq with the twitters and the ness teslas. >> john steinberg was making the point, they're getting in, getting preferred shares or access to -- you can't necessarily extrapolate from a vc investment to the market cap or value of some of these companies and by the time they go public, robert, the extent to which people might be able to get in or they might be valued at what reflects the general value of the company. >> it reminds me of -- i talked to a lot of art collectors this week, and there were billionaires feeling poor in the

ash art market because they were being outbid by what they would say was dumb money from overseas. smart venture capitalists are saying i don't know who is paying these valuations. they don't make sense to me, i'm staying out. it's weird given what's happening in the bond market. the ten-year is so out of step with these other pockets of speculation. >> think about if you're in private equity right now and you have all this quote, unquote, dry powder to put to work and you look at the valuations of basically everything out there, what do you pay up for? >> right. >> where do you find opportunities? >> exactly. and again you have that flight to safety on one hand and the flight to speculation and growth on the other. >> steven? >> in this market you're right. there's a very defensive characteristic if you look at the defensive and dynamic indices. >> it's like barbell. >> so there's a defensive tonality and characteristic to the market right now, but i think ultimately when you look at a market which is kind of fairly valued in the u.s., we go from the beta game or broad

market game of 2013 because security selection environment in 2014. what's going to drive the portfolio will be top line, a revenue game, and a game of inches. you need to look globally, look in europe, emerging markets, real assets and take that multiasset strategy and be very -- >> les was on earlier saying the bull market has room to run. capital expenditure is higher. if you're looking for what's driving ex wits versus say the bond market. >> look, doesn't it come back to being a credit boom? i know i'm going to sound like a broken record on this front, but -- >> corporate credit. >> if you want to talk about the places where -- look at darden bonds trading today. look at the jump we're seeing in the amount of money people are putting to work in the space. >> it's maybe not so much credit as liquidity or cash, just the amount of cash looking for some place to go and feeling trapped in, you know, treasuries. that i think more so than actual

credit. >> but if we could go back to the original point, janet yellen, what they're trying to accomplish, it's a squeeze play, and they are working to deprive investors of safe haven, forcing them to look elsewhere. >> exactly. job well done. thank you so much for being here on a friday afternoon. have a great weekend. it is now time for "fast money." mandy drury is with us. >> thanks very much. we are live from the nasdaq market site. i'm mandy drury sitting in for melissa lee and these are the traders here in times square and also in las vegas. great to have you with us grasso. >> thank you. >> you literally ran in 30 seconds ago. great to have you. >> tip of the hat, that's what a trader does. 4:00 and then you leave. >> fantastic. great. thanks for being here. we have a really volatile week for stocks. thank goodness we made it to the end of this wild ride. yesterday we had the triple digit loss. several hedge fund heavyweights weighing in. the recent run-up may be getting just a little overdone. we've heard a lot about nervousness out t i