fascinating. had a great time. thanks to general assembly letting me do that. fun day, but i'm not going to quit my day job. >> we're all better for that. tell you, just a look over here. one hour left in the abbreviated trading day, dow closes above 15,000 for the first time. hitting noontime on the east coast, our early ed addition with kelly evans and bill griffe griffeth. and history already made today here at the new york stock exchange. the dow jones industrial average trading above 17,000 for the first time in its history. welcome to the "closing bell." i'm kelly evans. >> i'll bill griffeth. wlo look what the bond market has done in the last week. did bonds anticipate this strong jobs number?

the yield on the ten year in the last week is up about 15 basis points. that's not even the peak. we were at 267, 268 early on. so we're getting a swift market response to all of this strong jobs data today. >> the question is whether we'll close above 17,000 here, bill, and right now it looks like we've got a comfortable margin. let's look across the markets. dow is up. session highs, 92 points. again, only an hour to go until the close here. the nasdaq meanwhile, out performer this week up almost 2%. its turning in a decent performance adding 23, another half percent. finally the s&p 500, at levels we have not seen for this index. up almost 10 points. 1984, just 15 points away from 2000. >> talk about this important trading day. monica madea, part of our "closing bell" exchange. with seventh capital. john manly and ben willis from princeton, keith fitzgerald said

it would be like this from money map press and our own rick san telly. can't wait to talk bonds with him in a minute. is this a green light to go higher or could it be resistance here? what do you think? >> a green light to go higher and by the end of the year without a doubt. every professional trader continues to look for some sort of correction. the fact of the matter is the economic data continues to print on a positive note, which means your money should be in the stock market, not in the bond market. it's been a very slow bleed, if you will, and the central bank's function will be managing that deflating that bubble they created in the bond market. >> do you agree, monica? especially as it looks like this stretch of job creation year on year is the strongest since 2006, which is neither encouraging or a sign perhaps the best of times are behind us? >> the tricky thing about a market, the pendulum swings hard in both directions. jobs numbers positive, in that we're seeing consistency. five months of 200,000-plus

jobs. at the same token, creating more part-time jobs than full-time jobs. we still have 275,000 workers who are forced into working part time, and while the long-term unemployment number is coming down, it's coming down for the wrong reasons. you're finding people are giving up looking versus actually getting absorbed into the market. >> what do you recommend to clients now? do you awe dpree with what ben said? stocks are the pla is to be? >> we take a long-term approach and with a long-term approach you keep study with your portfolio. we're in a lot of alternatives now. >> okay. >> it's time to think about diversifying, because i think the biggest concern for all investors is what's going to happen when the fed funds rate starts to move up and interest rates move up? and that's going to really have a whack to all different types. asset classes. >> keith fitzgerald, you've been among those who said we're going to keep going higher yet go that much longer without a correction of some kind of 10% or more. are we setting ourselves up for something even more painful down

the road, because we haven't had a correction in over two years? >> you know, a, thanks for remembering that, and, b, yes. i think we probably are. the pendulum swings violently on these types of massive market moves but bringing money off the sidelines. the fed is telegraphing what it wants to do. never mind it's making up the numbers. jobs composition doesn't look right and large enough to fall over them or through them. the fact of the matter is -- >> well, they're not making them up, but making them up as we go along. they're along for the ride. >> strategy as it goes along? >> turning into a nation of burger flippers as opposed to career builder. that bothers me. cracks i'm concerned about. longer term, quality companies never go out of style. rebalancing is what you need to do now and stay in for just a while longer. >> carlos gutierrez, john manly, became commerce secretary, started driving a coca-cola truck. you can start as a fast food

worker and work your way up in the countan't you? >> i started at mcdonald's. $2 an hour and loved it. >> how much was a hamburger then? >> less than $2. tell you that. could eat all i wanted, as you can tell. things are great. america is doing what it should do. expanding. it's international, normal. rates will only go up if it doesn't slow down the economy. the fed wants to make sure things are going better. the unemployment number, the employment report was perfect, not too hot, not too cold. absolutely perfect. >> rick santelli, here we are within the trading range for the ten-year yield, been in quite a while but into the upper range there. do you suspect we'll stape in the range or could we start to finally move higher here? >> tell you what, i think the bond message today is very compelling. believe me it wasn't a bad number today. the guests said this is wrong, that's wrong. totally correct. all things considered, the improvement has been rather substantial, even with all the

warts. up to close to 267. you see the chart, we're at 264. the most important chart is the one that starts in may, because may 12th to may 28th, the only levels you need to pay attention to. 266 close from the 12th. if we don't close above that today, on a day where all the impetus, all the nervousness is that you should be selling on strong data in front of holiday week, to me tells me that the treasury market is still bugged by something. now, if you look at booms versus tens, what it's not bugged by, a fresh 15-year wide. on a notional basis, our rates are higher, but on a real basis, the reason we're not going through, i don't any that the investors that represent the bond market believe janet yellen and company are going to be true to the type of data they're seeing, and they ought to be, because when you hear macroprudential what that is saying, they're going to ignore the data and not adjust monetary policy, and think they're going

to pick any of these bubbles with regulation, when 100 years of history dictate they've never seen anything in the front windshield that they address before bad things happen. >> monica, why i found that your comment about alternative assets, interesting here. are you referring to things like gold, commodities, where we have seen a lot of inflows lately or talking about more asset classes like real estate, commercial real estate? that sort of thing? >> we're beyond the gold i'm wearing. we're active in real estate and so we focus on very specific strategies and, again, i don't think you can take a broad approach to this. you have to understand the asset class, understand the geography. one point i feel no one's made is, the fed as much as we'd like to think they're in control, they're not in control. a business professor said the fed has a tricky job of driving a car where every turn is only felt 20 minutes later. >> i think by the way, the point everybody's making. they're not necessarily in control. >> they affect the psyche of investors. if they don't do the right thing with these better data points,

they're going to send a message of disbelief and pessimism. >> and that's a dangerous precedent, because when the pendulum swings in the other direction, naturally the hope is going to be that, gee, the government stepped in before. let's step in again. that's the wrong message, i think, to reinforce this. we need to concentrate on the fundamentals of investing and getting ahead with the solid underpinnings of the economy. >> jpmorgan, changed their idea after the jobs report came out about when they think the fed will actually start to raise interest rates. they now think it could happen right around this time next year. do you agree? and what do you think the market's going to do with all that? >> i do agree with them. as a matter of fact:think it may happen sooner. my economics professors couldn't stand the fact that i don't believe economics is in fact the science. it's an art form. what we're watching, janet yellen, the people's bank of china, mr. draghi, they're executing an art form. created asset bubbles by the

stimulation that they've created over the last six, eight yearened and it's their job to try and take that piece of artwork back down. that's what we're facing. whether you want to look at it through the front windshield or rear view mirror, fact of the matter, we will be beholden. i continue to call it the mattress effect. money will sit with the people making the rules about the money until we get a clearer picture in the front windshield what they're looking at and how they're affect our ability to invest. >> john manly, against this back drop. why weren't you concerned we're in an asset ubl bubble leer? >> i'll worry about tomorrow tomorrow. look at the valuation on the market. the market's around 15.5 times forward earnings. hardly a bubble. two weeks ago the people were calling for the end of the world. i mean it was never good enough. now it's too good. the simple fact, we can make money as the economy goes from okay to good. we made a lot when it went from terrible to bad and bad to ak, but okay to good makes money, too, and i don't see those

excesses. 15 1/2 times is not -- >> are there sectors to move into making a transition from okay to good? >> i think technology. look at earnings. in the technology sector taking off. some of the high multiple stocks hit. i think you look at what's going on in the energy sector's ooo-ey think we're going to see a lot more development in petroleum over the neglect several years. service companies should do well, oil companies. >> rick i know you cannot wait, you think that the fed can't raise rates soon enough right now. called liftoff, in their vernacular. what do you talk about on the floor there? when do you think they're going to start raising rates? >> well, you know, i know people like to look at fed funds, but when you're beginning a cycle, fed funds don't give you an accurate read. down here, many think she's going to wait too long. even though they all agree the market's more important than the fed, at this major turning point, 5 1/2 years after a crisis, i think there is much greater risk that they drag their feet, they should be more nimble. they shouldn't fall in love with

an old strategy, because as any trader as a guest knows, when you fall in love with an old strategy in a current market, they take you to the woodshed. >> leave it there for now. on that point, everybody can acknowledge. thank you all and have a great fourth of july weekend. 50 minutes to go here, bill. looks like it's going to be dow 17 070. >> we're in the most important hour of the trading day. in fact we are. is the employment picture everything it's cracked up to be? two top economists weighing in on that coming up here. also ahead, happy july 4th from expensive fireworks displays, barbecues, americans spend billions during the independence holiday, well, if it's not raining. on that note, check out this view of hurricane arthur from

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welcome back. a strong jobs report this

morning has meant a strong stock market, and we are above 17,000 on the dow for the first time in history. looks like we'll close above that number. the dow's up 95 points now. look at all three major averages. it's an evenly spaced out rally today. each of the averages there, dow, s&p and nasdaq up half a percent. nobody's standing out or lagging at this point. interesting heading towards the close. kelly? >> broad based gains, bill, as you say. courtney reagan is covering it. >> kelly, which movers helped get us where we are today. pet p petsmart. tarking to management and shareholders an a possible sale of the kwi. walgreen and rite aid. and lou lou lululemon, and abo

taking the yoga gearmaker private. among other options i'm told. on the flip sewed, mq mobile, plummeting, will need to expand the scope of its audit. market cap of 265 million dollars. end with staffing company manpower group, kelly services, co cornferry, moving higher as the employment picture brightens. back to you. >> thank you, courtney. jobs a hot topic now, obviously given the new numbers that came out called a blowout report. but was it? >> let's ask an economist -- with the economist, and a cnbc contributor and president of ceo of lasalle network, a chicago-based staffing and recruiting firm. welcome to you both. greg, you know, a lot of people are focusing on a big increase in part-time work offsetting an increase in full-time work. how concerned should we be? >> not very concerned.

the last year or two, part-time numbers bounced up and down, not trend. betser to look at numbers on the employment side of the report showing that total hours worked, they rose around a 4% annual rate in the second quarter. that's the fastest rate of growth in the last four or five years. i think we are not just seeing job growth but seeing people with jobs getting lots of hours to work. good for income. good for spending. but, kelly, i would add, negative for productivity growth. in the same time we're having hours worked going up so much, we've seen output doing basically nothing. that's one negative side to this report. >> good point. >> gdp and jobs may be at odds there. tom, watching the numbers. the what, you're watching the where. where are the jobs? you call it uneven. geographically speaking? >> yes. i think we really need to look across the country and eventually we have to get there. what's going on in chicago, new york, miami, l.a. is different than going on in des moines,

omaha, nashville, tennessee. we've got to look at this regionally. also saying, people get upset that part-time jobs are going up, but the fact of the matter is, there's not a direct correlation if there were fewer part-time jobs there would be more full-time jobs. we have to be thankful for what we have pt's stock market is doing great. we need to focus on the skips gap. >> the question of sustainability is coming up in markets today. the ten year interest rate reacted sharply at first but come off a little. are the job gains sustainable? it goes to your point of productivity? >> yeah. the worst productivity, the faster jobs have to grow to meet the same level of output. that's one of the factor gauss going on here. job growth strong but output growth not. that tells us potential growth is weaker. output gap might be smaller. that might mean the fed has to moor more swiftly or move up the federal funds rate maybe by three months.

>> 6.085% unrounded. a big downward move again. while that might be for the wrong reasons it doesn't mean the fed shouldn't respond? >> absolutely. on unemployment at the level they expected to reach by the end of this year. also seen inflation moving up a little bit. all of these things together suggest that the fed might need to move up a little bit the data which it begins to tighten. a couple aftcaveats. wage inflation is weak. one giving the fed pause determining the data. this stuff is volatile. i wouldn't assume the new trend is 285,000 per month. it could fall back easily in the months to come. >> tom, do you agree? what about the issue of quality of the jobs, how many part-time workers added to pay rolls this time around? give us a sense of the quality of this jobs report this morning? not just the quantity. >> i think quality is the issue. one of your earlier guests said, he started working at mcdonald's. the fact of the matter,

everybody doesn't come into a $60,000, $80,000, or $100,000 a year job. we're in the mind-set of the recession. the jobs are there. seeing a lot of people starting out at $3,00,000, a good career path to make $40,000 or more a year. i disagree from the statement kelly made. if unemployment drops it's a good reason. the fact of the matter, trying to make sure we have long-term employment. >> the argument, if you shrink the work force, unemployment might look better but you want the most people working in this country that you possibly can have. otherwise, long-term growth, long toe-term productivity look much weaker. >> we need to look at that. >> go ahead. >> one positive thing, if you could call it that. the participation rate actually did not go down in june from may. stable at around 62.8%. >> right. >> that's a low level and

they'll be expected to drop as far as it has. pulling up the camera a bit. we've had zero labor force grow in the last year. to your point, kelly, notwithstanding, we should be grateful more are going back to work. lack of growth and underlying supply of workers. >> greg, though, are we being too impatient about this recovery? let's face it, we're coming of you a of a huge recession, a horrible financial debacle from '08 and '09. is this recovery going to be differ as a result comparing it to past rovies out of recessions here? >> well, the jury is already in on that one, bill, and it has been slower and worse. i don't think we're being impatient. we have each year, the last four, five years expected a pickup in growth in the 3% level that never happened. i feel it's about time we started to get a run of upside surprises like this. i would add the following caution, that i'm not about to start, like, popping the champaign corks based on these

last two or three months' numbers. given on weeks of factory output numbers, the retail fail side, i am not sure we can sustain job growth at the current level. >> tom, last word? >> we've got to be a little more optimistic. unemployment's gone from 10% to a little over 6% and not necessarily due to the administration at all but the fact of the matter, companies making more profits and hire whoing people and people out of work a long time, they need to realize and get their skills up to par or accept less money, but the economy is doing better. >> thank you for that perspective this afternoon. have a great weekend. >> thanks for having me. about 40 minutes to go here. stocks near the session highs. dow's up almost 100 points. about 9 now. 1765s level and the s&p we don't mean to neglect, also at a historic place here. 1984, within 15 points of 2000. >> and the yield on the ten year sharply higher as a result as well. just ahead, the latest on what is now hurricane arthur, and its storm track.

we find out if you should cancel the barbecue plans for tomorrow and get tickets to a movie or a museum instead. and later, i'll speak with the executive producer of one of the big evidence fireworks shows in the country. the macy's fireworks scheduled to take place over, no's east river, well, if arthur cooperates. we'll be right book.

welcome back. where we stand with 35 minutes left to go on the shortedened

trading session. dow jones industrial adding 94 points. all indexes up half a percent on what has ban strong week for them, bill. >> yep. meantime, hurricane arthur is whipping up the east coast. the timing could not be worse. it's just in time, of course, for the july 4th weekend. whether channel's raegan medgie joins us with the latest track. raegan? >> reporter: funny they said whipping. we see the wind increasing. looking at a light posted. looks shaky. a live look at the beach here in north carolina. you see a lot of people, looking a the ocean. not going in the ocean. why? because we got those strong winds and heavy rains, combine that together, dangerous ocean currents, basically those harsh rip currents. now we'll have the camera go over this way. you see the guard stand, the lifeguard stand, that's empty at this point, because the lifeguards have been pulled because conditions aren't favorable out there. they're trying to make sure and going to be roving patrols in their vehicles up and down the shore, making sure basically the families here for the big

holiday weekend where all the business is basically depend, trying to make sure the families just don't go in the ocean, because at this point, those rip currents could basically pull you out. so what can we expect for the rest of the day? as the wind starts to gear up, this storm's going to get worse going into the evening. right now kind of in the beginning of the system. basically we're taking our eye to the skies, making sure everything is well here and, of course, there is no evacuation here, but if you go to the outer banks, where it's getting a lot worse. there has already been a mandatory evacuation for hatteras island. for now in wrightsville beach, keeping our eye to the sky and give you the latest and greatest information we possibly can. back to you. >> raegan, thank you. do you have a sense whether this storm is in fact bearing out towards the atlantic as it moves up the coast at this point? >> reporter: at this point, we're not sure. we're being told it's a category 2 hurricane when it reaches land. we don't know at this point. we know in the weather world, things can change on a dime. change in seconds, hoar,

minutes. we don't know. at this point, the rains now is starting to pick up. we can expect it will be a very eventful day. >> raegan medgie on wrightsville beach in north carolina. the president making comments moments ago on today's strong jobs report from ann incubator plant in washington. let's listen in. >> this is an incubator for all sorts of tech start-ups. a lot of them focused on social change issues, on education, on health care, and so we've got a range of entrepreneurs who are trying to figure out how can we do well by doing good in many cases, and i just have to say that the young people and some not so young people that i spoke to, coming from a wide range of backgrounds. we had former army rangers. we had lawyers. we had former hr folks.

transportation experts, engineers. all of them had the kinds of energy and drive and creativity and innovation that has been the hallmark of the american economy. and part of the reason i want to come here today is to focus on what's happened to the u.s. economy over the last several months and last several years. we just got a jobs report today showing that we've now seen the fastest job growth in the united states in the first half of the year since 1999. [ cheers and applause ] right? so that's -- this is also the first time we've seen five consecutive months of job growth over 200,000 since 1999. [ applause ] and -- and we've seen the quickest drop in unemployment in 30 years. so -- it gives you a sense that

the economy has built momentum, that we are making progress. we've now seen almost 10 million jobs created over the course of the last 52 months, and it should be a useful reminder to people all across the country that given where we started back in 2008, we have made enormous strides, thanks to the incredible hard work of the american people and american businesses that have been out there competing, getting smarter, getting more effective, and it's making a difference all across the country. now, what we also know is, as much progress has been made, there's still folks out there who are struggling. we still have not seen as much increase in income and wages as we'd like to see. a lot of folks are still digging themselves out of challenges

that arose out of the great recession. historically, financial crises take a longer time to recover from. we've done better than the vast majority of other countries over the last five year, but that drag has still meant a lot of hardship for a lot of folks. and so it's really important for us to understand that we could be making even stronger progress, growing even more jobs. we could be creating even more business opportunities for smart, talented folks like these, if those of us here in washington were focused on them, focused on you, the american people, rather than focused on politics. and i've given a number of examples over the last several months of things we know would work, if we are investing in rebuilding our infrastructure. that doesn't just put

construction workers back to work it puts engineers back to work, landscapers, architects back to work, folks who are manufacturing, concrete or steel back to work. it make as difference. and it has huge ripple effects all across the economy. if we are serious about increasing the minimum wage, that puts more money in the pockets of people who are most likely to spend it. they, in turn, are most likely to hire more people, because they now have more customers who are frequenting their businesses. if we are making sure that there's equal pay for equal work, that's helping families all across the country. if we're focus and making sure that child care is accessible and affordable and high quality, that frees up a whole bunch of potential entrepreneurs as well as people who are just going to work every single day, doing the right thing, being responsible, but often are hampered by difficult situations in terms of trying to manage parenting, and

families. and so there are just a series of specific things we can do right now, many of them i'm doing on my own, because we have the administrative authority to do it, but some of them we can't do, without congress. we can't fix a broken immigration system that would allow incredibly talented folks who want to start businesses here and create jobs here in the united states, would allow them to stay and make those investments. that's something that we need congress to help us on. we're not going to be able to -- we're not going to be able to -- to fund the highway trust fund and to ramp up our investment in infrastructure without acts of congress. so my hope is that the american people look at today's news and understand that in fact we are making strides. we have not seen more consistent

job growth since the '90s, but we can make even more progress, if congress is willing to work with my administration, and to set politics aside, at least occasionally. which i know it what the american people are urgently looking for. it's a sort of economic patriotism, where you say to yourself, how is it that we can start rebuilding this country to make sure that all of the young people who are here, but their kids and their grandkids are going to be able to enjoy the same incredible opportunities that this country offers as we have? that's our job. that's what we should be focused on. and it's worth remembering as we go into independence day. thanks, everybody. appreciate it. thanks. president talking job growth strategies at that incubator in washington especially in the

small business sector on a day when the jobs numbers were very good. a gain of 281,000 in june, and the unemployment rate down to 6.1%. of course, that has powered the stock market higher, kelly evans. the dow up sharply. above 17,000, we will make history today. we were at 16,000, what? seven months ago, right? crossing a millennial mark every seven months or so. >> those weren't the comments that has wall street talking about. we'll talk to someone who had an interview with the president and wasn't happy about the behavior of bankers. as you can see there, trying to encourage job growth across the country. more on these markets on this record day when we come right back. who don't have electricity and i just figured that it's time i do something about it. what we're doing right now, along with ibm, is to actually transfer data through a satellite from our wind farms directly onto the cloud. i think we could create a far more efficient system

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welcome back. despite today's dow highs, start with the markets. 17071. up half a 1% and we're looking, bim, at a market with fairly consistent gains across the board. >> up about a half percent as bonds sell off today and push the yield on the ten year to 265. pretty strong market response

here today. >> yeah. despite the highs, oppenheimer's saying investors have to look at the whole market picture. >> and here with chief strategist. you sound skeptical? make cautious? that's the word i should use. is that right? >> not exactly. actually, i'm feeling really good about it. coming up on our 2014 target on the s&p 500. which we implemented last november. so seeing the dow at 17,000 looks to us like a preconfirmation of what's up ahead for the s&p. >> and brian reynolds, people will start to talk about the fed raising rates sooner than expected. will higher rates mean lights out for this market? >> no. it will actually make the credit boom more intense. financial engineering driven by this credit boom in place since 2009. if you look at the history of credit booms, the '91 through 2001, '03 through '071, the

credit boom comes after rates go up. i can't wait for that day. >> it's counter tuti tuitive. would you believe they could rally from here? >> certainly would, kelly. we have a track calmed the mayan temple effect showing the last 17 times that the fed raised the fed funds rate. racing 25 bips at time. the market went up the whole time during that period and also went up after the fed stopped raising rates. when the market went down was when the fed starting cutting rates. are you ready for that? >> bill? >> getting sweaty palms. two super bowls here all of a sudden. brian, is there anything that could cause, finally, to bring a 10% correction to this market here? >> probably not. last month alone we saw 30 major pension funds vote to put more

money into the credit market. that money hasn't even hit the market yet, and this week, marked the start of the fiscal year for many states and cities. taxes went up on july 1 in california. they're going to go up eventually 14% of pay rolls for teachers to help fund the teachers pension, and the same thing is going to happen next year with the main california pension. so that money is still yet to hit the credit market. >> so pensions are playing catch-up here what you're saying? >> they're trying to make 7.5% in a sub1% world. no way to do that forever, but taking in more none put into the credit market, meaning this cycle probably has another three or four years to go before it ends badly. >> goodness. last question for you against the backdrop, if 2014 was your target this year and starting to think perhaps bigger and stronger, what ultimately do you think the market account do? >> we'll have to see, kelly. the next thing to look at, when

we get to the earnings reporting season coming up that starts next week. in addition to that we can't help but feel in the interim, the market will always be subject to some kind of a catalyst that will get it to take a mayor chaircut. >> in the back of your mind, no sense of how much longer and higher this could go? >> we like to think a bull market could run several more years. looking ed ahead, the next 12 months look good. we expect at some point we have to take a breather. >> that breather, everybody's holding their breath for it. thank you, guys. >> thanks, gentlemen. >> have a great weekend. heading towards the close. a reminder, the market is about to close. closing early because of the july 4th holiday tomorrow, when the markets will not be open at all here in the united states. and right now the dow's up 88 points and it looks like we'll close above 17,000 for the first time, kelly. >> we'll have more on this historic run ahead. noted technical analyst, explaining why he does not see

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welcome back. 15 minutes to go here in an upward move in treasury rates after the stronger than expected jobs report this morning. not doing much to halt the rally and stocks continuing um another half percent in a week the major indexes are up in the range of 1% to 2% and the dow looks like it will close, don't want to jinx it, above 17k. >> and only 14 minutes left in the trading session, if you're just joining us, we're heading towards the close. a timely story for the fourth of july. stocks that generate a monajori of their income in the u.s., continues. seema mody? >> companies that make money right here at home on average out pacing gains on the s&p 500. up about 8%. that data according to thomson reuters. telecom stocks playing a major role. century link, windstream, frontier communications making

100% of their sales in the u.s., providing a lift to the index. other notable winners, forest labs, mountain green coffee, pepco holding, southwest airlines and exlons. she's companies make most of their sales in the u.s., all up better than 30% so far this year. in terms of other u.s. stocks continuing to outperform going forward, betting on industrials telling me continued recovery in the u.s.s, jobs, manufacturing capacity coming back to the u.s. helping names. like norfolk, southern and csx moving to the upside. not all experts agree. from bank of america merrill lynch prefers high quality multi-nationals, cheaper, unloved and diversified revenue streams. back to you. >> seema, thanks. 13 minutes left. the dow up 86 points. a healthy gain following this morning's strong jobs reports.

coming up, the financials lagging the market rally this year. also, wait until you hear what president obama just said that could make it even harder for bank stocks to catch up, and the person the president said it to will be here. we'll be right back. with fidelity's guaranteed one-second trade execution, we route your order to up to 75 market centers to look for the best possible price, maybe even better than you expected. it's all part of our goal to execute your trade in one second. i'm derrick chan of fidelity investments. our one-second trade execution is one more innovative reason serious investors are choosing fidelity. call or click to open your fidelity account today.

welcome back. we're above 17,000 for the first time ever on the industrial average. joins us, our friend independent investment consultant, i don't mean to be a wet blanket, but everybody is bullish, it seems. i remember an interview i did years ago in miami when the real estate boom was going on, and agents said buy florida real estate, because prices always go up. they don't always go up. we know that. you need to take a dose of reality even when the dow gets above a new lineal link. >> i do, definitely. the market is hitting on several cylinders, house prices, pending home sales, new home sales, existing home seams. you have monday taken stimulus, ism manufacturing, you have the

philly fed, the chaub pmi, the entire state fed, all of those, bill, are positive things, to me the things you have to watch out for, the second quarter, let's see where's the beef? show me the money. you need retail sales. confidence is there, bill, but people haven't been buying, retail sales, you saw that personal consumption number that came in. up only two tenths of a%, kind of a disappointment. we want to see the profits, 90-some companies now have given negative guidance, guiding downward on the estimates. where's the revenues? , where is the profits? interestingly enough, over half of the s&p 500's retches are outside the united states. that means the condition of china, the condition of our emerges markets, the brazils of the world, okay? southeast asia, those are very, very important, so i think you want to keep an eye on china's

numbers. they came in a tough better this week, so right now the markets hitting on 9 or 10 of the 12 cylinders. . that's why it's lifting. now, volatility is below is 1. you pointed out. it is a sign for those investors who are so inclined to put prices and other protectionary strategies on the cheap side. it's as if they were basically offering home insurance at very low rates. you hope not to collect on it, but if you had to buy some, it's very cheap. >> stay right there, bill. we'll come back with the closing countdown. still above 17 thousands. it looks like we'll make history. the market is closing in just a few minutes because of the fourth of july holiday. we'll come with the closing yountdown in just a moment the cadillac summer collection is here.

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a record as we close above 17,000 level for the first time ever. the industrial average pretty much off its highs of the day. we've lost 30 of those points, but still at 17,041, even as yield on the ten-year goes higher. back with david darst. how do you gauge the quality of this rally today, robert? >> it's about as good as it gets. we have a day here where the number we were anticipating was strong, stronger than expected, but not so strong that it freaked out the bond market. it doesn't get any better than that. tomorrow the headlines will say strong june jobs report and by the way it's going to mention the dow hit another high. here's the way people start saying maybe there is something to this really, maybe the economy is getting better. >> and you will have people, bill and bob, you'll have people being more worried about being out of the market than they are being in the market. over the last two years, the amount of cash that the

individual has held has gone up as a percentage, something like 22%, up to 27% in cash. so this is the kind of catalyst, as bob set a minute ago, that wonderful employment report, which he said was just strong enough, but not too strong to get everybody worried about rising interest rates. keep your eye on the bond market. the bond market basically in europe that you've got this bifurcation, people buying german and french bonds at very low yields, and people buys greek bonds, port gee bonds, spanish, italian bondsing to some yield. >> everybody keeps ask if the bond market is overvalued, and i keep saying compared to what? we may be above historical norms, but bonds against bonds? i don't think so. against cash? i don't think so right now. >> that bond is the anchor. if the anchor holds and it does not slip, bob is right. if the anchor starts to move,

then people start to worry about s&p is at 1.67 times sales, which is double its long-term average, and professor shiller talks about it being 45% above its long-term average. so valuation is just a smidgen on the short-term base next 12 months, a smidgen above the long-term average. >> how about maybe for the quarter, now we're getting into earnings season, bill, how about a nice little friend, the xeems themselves start talking about more capital expenditures. >> it's about guidance, that's for sure. gentlemen, thank you, happy fourth of july holiday. nice ties. >> happy independence days. >> nice tie as always, mr. darst, coming from you and bob, that is nice. make me feel great. i'm going to wear it all weekend. by the way, there was a rumor out that the high on the

dow was 17,076. not true, but it was a nice sentiment. going out above 17,000 ever. we're getting stronger as we go out on the close. student for the second hour of the "closing bell" with kelly evans. have a good holiday, everybody. wow, a history day. welcome to "closing bell." i almost had a heart attack. we have some fireworks going off, thanks to the folks at macy's. who knew it would be such as apt display here on july 3rd, as we finish up the day on wall street, fireworks indeed. the dow jones industrial average closing above 17,000 for the first time.

never, going out near the highs of the session. our own sara eisen and dominic chu, with us, kenny polcari. welcome to everybody, kenny, what do you think? >> certainly a great way to go out for fourth of july, right? kind of right at the top here, all this excitement. today's nfp report certainly adding fuel to the fire. this morning out of. don't forget it's half a day today, low volumes not a lot of people around to react.

i think it will allow the economy to catch up. >> the line about a 10% correction is landlords bumming a punch line. how concerned should we be that it's kernel more? one of those markets where the path of least jassance is to the up side. it hasn't like we've been seeing the massive two to -- at least more volatile. what you have is a situation, where everybody is maybe trickling into these markets. i'm not making a volume argument. i'm just saying there hasn't been at least that many people just pushing or one way or the other the market is up or down. you're looking at a market indicator that has been lagging over the course of the past year, and whether or not it

catches up to the rest of the broader market, that remains to be seen. even if it was, kelly, we would be talking about 17,6 right now, not 17,000. >> that's a good point. i wanted to ask zach and heather, speaking of this trickle, what kind of flowing you guys are seeing from the public. at dom aluted to, volatility is week. all all for team usa, but now the world cup in terms of the usa winning, maybe that's over. you'll see some investors flock back into the markets for more active trading. what are you seeing? >> again, this is not been a market that people have been participating in, and i guess institutions rebalancing. you know, it's true there hasn't been an index pullback, it's also not true there haven't been pullbacks in biotech, emerging market decent, and we're talking

15, 20% correction, so there is movement in these markets. i think kenny is probably right, next week you could see people saying, wait a minute, there's some earnings reality, so i don't think it's like everybody has perfect. far too many people are talking about how imperil this is. >> the signal going forward, we did see an interesting move today. the two-year the question is, does this change the conversation? which confirmed the trend of healthy improvement in the labor force. >> here's the crazy things. >> with the strongest sector today. the curve is starting to flatten, but appears as though, dom, they've been complaining about this. >> here's the thing, though. the banks have been laggards for the course of the past year, so as you start to see things rotate towards more positive news, the financials have a catch-up trade to make.

if you look at today, great today, a lot of regional basics, great day. you can stay whatever you want -- >> but it's not, this is the point that sara is making, all of a sudden the two-year is saying, and the response from financials now appears to be this trade is moving from one where it's a trading bay on the yield curve to one -- >> rotation from an underperforming sector into one that could be -- yeah. >> and some belief and some talk finally we'll starting to some reinvestment flows. maybe more participation in this rally, maybe it's too late, but that could help the banks overall. look, they've been suffering from these low interest rates, and that could be a help as well. >> listen, janet has made it clear, along with every other central banker,ing in the daya turns so strong so quick will i so fared overregulation of banks

often hurt them as we continue to improvement. >> and clearly they will. banks will be under these multiple players of regulation, and i think if you're expecting profitability to changes dynamism, a you're going to be wrong, and b you should by thankful. >> we don't have another way. >> we do not want financials in my view leading this economy or this market, by the way, we are going to have kyle risdal. president obama made some remarks about perhaps doing more to crack down on wall street behave, on trading behave.

i think it's a los angeles of what's gog on, how compensation has so i think that we need to go back and take a hard look at the current state of affairs. >> we eye the 2000 mark on the s&p, do you think that becomes a floor, or are we going to struggle back and forth? >> i think we're going to struggle back and forth. i don't think 17,000 yet will become a floor. i think clearly it will at some point. i think next week when earnings start, i think you'll see this reassessment. people will come back, get more natural selling. i think it's going to churn, go back and forth. through the summer. >> what's key about that, too, as well. early on in the earnings season, every time around, you always have representatives of the two

biggest sectors reporting their numbers. this time it will be wells fargo alone on friday with jpmorgan, citi, b of a all the next week, but google, intel also coming up the week after that. between financials and tech, sector wise represents those first two weeks. that will be key, because they could move the marx more than utilities. a couple things we haven't touch on, the services index was stronger than expected in europe. you know -- >> ecb. >> it's not as if mario draghi came out with new measures, but they're still having a negative deposit rate. >> and he signaled he would be open to doing more. i think that was the key in terms of what those bulls on the european stocks and bonds were looking for, the openness and

willingness toward qe. the euro hasn't even moved since the last time they acted. he says he's monitoring the exchange rate. that central bank is certainly on easy street. the plus side, to throw an x factor in here, the next week in india will release its budget. we for good reason don't that you can about the 1.2 billion as part of this global growth story. i think it's a possibility that india backs what china was in 2000. if india does a fraction of what china did in the ten years past 2000 because of this new government, we'll be talking about commodity prices going occupy. >> we're seeing it already. >> retail companies selling into the indians markets, which they could do right now. >> to what extent is all of this priced in? because the indian market has done so well. >> purely india and etfs, but the bottom line of procter & gamble, walmart, you name it, i

don'tening we're pricing it in at all. >> when it comes to american investors, it's been a industry rally, and a lot of people were wrong about that this year. what happens next, if there's the view that the u.s. -- if the dollar strengthens, against a lot of emerging markets, is that still a good trade? >> that's a tug of war. from a mutual fund perspective. in the u.s. and domestic markets 16 times price to earnings -- or you along abroke, europe nine times priced to earnings valuation. >> and remember, sara is totally right in that emerging markets have been the call for the past three years and the wrong call. so the question is, do the fundamentals of those markets making it the right call? but there are a lot of american companies that are the beneficiaries of this, and that's going to help their bottom lines, even if the emerging market investing call is still alive. >> here's the problem -- >> last word.

>> mutual fund managers are almost the proxy. they only put money to work if they have money to put to work. we haven't seen a lot of conviction on the mutual fund side. >> but they still have cash. >> but you won't seen they buys big until flows start showing. >> we'll leave it there for now. kenny, thanks for joining us on this historic afternoon. enjoy the early close as well. it wouldn't be the fourth of july without the fireworks. we just didn't think they would be coming from markets. fresh off the closing bell, the execty producer of the macy's fourth of sdwrul fire wok. look, this is a huge event. what happens as hurricane arthur starts bearing down. >> we try not to worry too much about it. what we really concentrate on is the real-time weather at the moment the fireworks are supposed to go off. if there is bad weather, we'll wait until it passes. >> what kind of economic event

is this, amy? >> this is a great day for the market, great day for us. are our gift to america, and i hope you'll by watching tomorrow. >> try not to miss it. it's an expensive event for you guys as well. can you give us a sense of what's involved with this production that people will see along the east river and as i understand it along the brooklyn bridge this year? >> it's a big deal this year, we're celebrates the 200th anniversary of the "star-spangled banner" and we're working with brooklyn bridge, so it will be a stunning show. the bridge will come to life as the centerpiece of key moments throughout the show, but it will be magnificent. 40,000 bursts, 50,000 special effects just for the bridge alone. >> by the way, a lot of people like to listen along on the radio. is it a human picking the songlist or something like songz that generates -- >> no, no, the soundtrack is

cultivated for about a year. the fireworks soundtrack is the jumping-off point for the fireworks themselves. >> that's a team of humans picking it? >> it's definitely a human. >> i feel silly for asking, but i'm just curious. song selection is all the rage in the tech world. >> we have a creative director who works on that soundtrack that really becomes a jumping off point, like i said. when we choreograph the fireworks to marry up to the music we choose. >> good luck with all of it. >> thank you, have a great fourth of july. >> a better than expected jobs errors helping that close. up next, rail al can foro is here to explain. and a person to make the case why the recovery housing market was a major catalyst. you are watching cnbc, first in business worldwide.

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welcome back. take a look. the dow closing above that 17,000 mark, does this rally still have room to run. ralph strongly believes this is a secular bull market.

ralph, what does that mean? >> hi. hi. happy fourth of july. >> happy fourth. >> a secular bull, by definition, is a market that rises over many years, at least a decade, if not more. the last one we saw was between 1982 and 2000. that secular bull lasted 18 years. by the way, you have bear markets during that secular bull. you'll have many, many corrections, but they work their way higher, and the essence of a secular bull is sector rotation. and i'd like to mention today the consumer discretionaries, and the telecom sectors actually made new highs. no one is talking about it. that's rotation. that's encouraging. >> by the way, after that job reports, you e-mailed one of our producers, a bull, i think, right off the bat. >> yes. >> why is it that this report seems to have hit all the right notes for this market? >> you know, i'm not an

economist, kelly, but the market is probably one of the best indicators of the economy. you know, you can just argue about the nuances of the report this morning on the jobs report, but market likes it, low inflation, low interest rates, don't fight the fed. it looks good. >> so, ralph, you have given us a backdrop of a rally that could still have several years to go, but in the past, as moments when it looks like the market is breaking down, you haven't ruled out corrections in the range of 10% to 20%. at what point do you think we finally get a move like that? certainly that's going to be on top of everybody's minds. >> yes. normally -- and i'm going to get very technical for a second. for us to have a sizable correction, a meaningful correction, the market usually hesitates a couple months.

if you remember in april, i was very concerned about a correction. first four months of this year, the dow couldn't get out of harm's way. the dow couldn't make a new high. that was one of my major concerns. seven out of the ten sectors were doing the same. that is not the case today. so if we are to have a sizable correction, kelly, i would suspect that i'm going to see several weeks or a month or so of churning before that happens. >> okay. >> ralph, i have a question about correlations. you know, what we saw today was something very different from what we've been seeing, which is rising stocks in an environment when the dollar was stronger and treasuries sold off. all year it's been the opt sit story. rising stocks where treasuries were selling off. are we in some sort of new environment, where all of these assets move in a different way, signaling a stronger economy? >> yeah, i don't like to say this time it's different, but so far it seems to be acting that

way, and, you know, i -- i just don't want to fight the trend. i think we go with the flow. >> speak of trends, you talk about there haven't been many dips to buy. what are clients asking you about? markets are at record highs, do you tell them to number? do you wait for a 5% correction? 10% correction? how do you tell clients when they should actually get into a market that keeps on making record highs? >> i actually don't tell them when, i tell them what. i like to buy stocks that are not overextended. kansas city southern, ksc, i believe it is, broke out. that would be a recommendation. stocks that have lagged like microsoft, texas instruments, i think would be on my buy list. i get a nosebleed when i look at the sandisks of the world.

i just can't chase them. i have to go for the ones that have not been extended. >> those names in the dow jones indices, and again you said it's not when, but what that seems like the strategy oar going after now, because no one can predict a correction. >> i have to do that, because the market no matter how you measure it, it is overextended. the fundamentals will tell you it's at least fairly valued, some of it is overvalued. it's not like we're coming into the game early, but it doesn't mean the game is over. >> what would you do about financials? i was -- on your line of you, buy that which has lagged, you would end up in that area. >> yeah, well financials i still like bank of america. it hasn't done much of everything -- >> they have the fourth of july colors and flag there.

we have it up around the exchange today their symbol or logo. >> yeah, okay. so you've got [ laughter ] >> you sent us the bull, we'll send you a picture. >> where do you see the last opportunity there in the financials? >> i think goldman sachs is a good place. i like wells fargo, and again bank of america. >> their earnings fast approaches, ralph, have a great holiday, sir. >> thank you. a strong jobs report, is it enough to cool concerns about the economy? we're going to talk about that next. as we head to break, check out this history of the dow's movements from its inception until today.

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welcome back. the june jobs report coming in better than expected, helping the dow close above 17,000 for the first time today. our mary thompson has a look at

one college helping to fuel job growth in a high skill industry. mary? >> that industry being biotech, kelly. this is the outlook. 400 jobs here ins in misby 2016. 8,000 jobs across the country by 2020. that's the outlook for biomanufacturing technicians. the people who help to nurture the trillions of cells used by biotech companies to produce drugs on a mass scale. so quincy college designed a two-year program aimed at specifically filling those jobs, knowing if they train the students in what the industry needed, the industry would high them. case in point 25 years old alex wilson, hired by shire pharmaceuticals last year. >> microbiology allowed me to conceptualize the behavior d. biomanufacturing was the bread and butter, gave me all the skills i needed to do everyday

activities and the foundation to move up in the company. >> derek is enteren as tecata pharmaceuticals. she's graduating this summer armed with the hands-on training she's had at quincy college. >> it carries over throughout the field. as long as you have a good foundation of labwork, you can go anywhere. >> the program is working, because its graduates are. 100% of the first class found jobs, 0% of the second class are placed at starting salaries of around $40,000 a year. kelly, back to you. >> mary, an important reminder behind these big moves are a ton of young people in this country finding better-paying jobs. thank you, mary thompson in massachusetts, and happy fourth. our next guest says this job report has a lot of good, but some bad and ugly. he joins us now, who says the fireworks started a little early

because of this report. welcome to you both, anthony. let's start with the ugly. we've been talking so much about the positive today. what are we missing in this report? >> well, the only thing kelly that i'm very disappointed with is the fact we have so many part-time workers. as you know, the number of part-time workers for economy reasons going up about 275,000, then when you add in those individuals who want to work part time, you start to get a number like a million. i would like to see those numbers shrinking. that would mean there's even more earnings out there. having said that, the hours worked are running almost twice as fast in the second quarter compared to the first quarter, so nonetheless there's going to be a lot of money out there to be spent. i am waiting for those numbers to shrink a bit. >> this brings up an interesting discuss right now. overall hours worked are increasing, but again a lot of this work seems to be stitched together on perhaps a part-time basis. what happens if this is more than just a one-month trend?

>> i think it has been more than a one-month trend in the sense we've been seeing this problem for a long time now, and underscoring this issue is the lack of income gains. you know, i don't want to be the first person to raise the negative aspects of this report, because i really do think on balance it was something to celebrate when it seems like for so long we haven't had much to celebrate in this country. that's not some sort of polyanna-ish statement, i'm same on balance it's a good report. we do need to be improvement in labor force participation. those are the two big question marks not helped by this report today. >> anthony, can you give us a historical sense in terms of part-time employment today? >> when you look at part-time workers relative to when the job recovery began, you don't really see that much of an increase. you'll basically see it from month to month, but on top of that, what you'll see is a huge part of the increase in part-time gains are thought

individuals that want to work part time. those being forced to work part time relative to the -- you don't see that much. nonetheless i would like to see this number shrinks moving forward. one thing i will say, kelly, that's when you look at wage gains, particularly in those lower-wage components like food preparation and restaurants, those wages are not starting to pick up at 2.7%. ironically that is one of the sectors moving very rapidly. that might be a sign if you start this economy growing, you will see the wage gains, but with regard to the soft wage gains, keep in mind this is an environment where there's a lot of slack, so guess what? we have a lot of room in the runway to go. there's a lot of slack. otherwise with all these strong employment gains -- we have more than 100,000 more on nonfarm payrolls. we are still not seeing rapid wage gains. that means there's a lot of slack. >> understood, mark.

last question, because what anthony said, a lot of people may be working part time, because they want to. if that's a reflection of demographics or preferences that are changing, is it a problem tore addressed and tackled? or is there some other way we should by thinking about this increase? part-time jobs? >> i think we do have a very dynamic economy. a lot of things are happening beneed -- there's a lifestyle choice, but i prefer not to shine a spotlight on all of that, and say that is something to celebrate. i think that's largely been a function of stress in the society in the workforce, and i think biand large, most people in this society are aspirational, they said to make a good living and want to work full time. >> lots to chew over this weekend. thank you, gentlemen, this afternoon. the dow hit 17,000. all the buzz on wall street, the question is how much is it buzzing online? what is topping the hot list? we'll get that to you next.

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well, with the dow punching through that 17,000 market, could there be any other story topping our list? alan, is it all about this market? >> it is all about dow 17,000 today. if you look at my chart b traffic monitor, right when we opened up the market and hit, spike, spike, readers piling into the website. who led and who lacked? and four stocks sort of led the charge -- caterpillar, merck, intel, but on the laggard side, pfizer and p & g. they're just sort of peeling back the onion. looping with that we have a

feature say make you should pay more attention to the s&p, make more indicative of the market, so that is doing pretty well, and then jim cramer playing off that, you're right, s&p is what you should look at, and then the jobs number. >> i always thought it was curious that the commissions, always puts the dow as the major tell for the u.s. market and the s&p is in kind of the other basket. maybe it's just because of the long history there. >> or maybe you could just by cynical. thanks very much. happy fourth. first, your house, what impact does the price of your house have? it may be more than you think. the white house may not be done with banks here. seemingly out of nowhere, taking a swipe at big banks promising more regulatory action.

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tdd#: 1-800-345-2550 life inspires your trading. tdd#: 1-800-345-2550 where others see fads... tdd#: 1-800-345-2550 ...you see opportunities. tdd#: 1-800-345-2550 at schwab, we're here to help tdd#: 1-800-345-2550 turn inspiration into action. tdd#: 1-800-345-2550 we have intuitive platforms tdd#: 1-800-345-2550 to help you discover what's trending. tdd#: 1-800-345-2550 and seasoned market experts to help sharpen your instincts. tdd#: 1-800-345-2550 so you can take charge tdd#: 1-800-345-2550 of your trading. welcome back. the record smashing dow 17,000 getting to the market on its own. with evidence of that, we're joined by cnbc's diana olick, you're taking some credit for this? >> why wouldn't i, kelly? look, it's not the home builders pushing the dow and overall market higher, though dr horton

did hit a 52-week high. the index is up, but it could be home prices, that is the return of home equity. home prices have been rising on a year-over-year basis for 27 straight months, now 19% below their peak of 2006, but up 26% from their drop in 2012. rising home prices have brought millions back above water on their mortgages, though between 6 and 10 million are still drowning, depending on which particular survey you choose to believe. still that's about half as it once was, borrower are not drawing on this equity. no spike in cashout reifies, but when they feel more secure in their single largest investment, they may want to invest in that home again, do some remodeling, which of course benefits the big retailers, and puts money back into the economy. borrowers could also be taking

advantage of savings from the major refinancing boom that occurred in 2012 and 2013. they didn't spend then, but may now the record low rates, they put cash back into our pockets to spend, to investment, and to fuel the economy. kelly? >> diana, point well taken. great to see you. if the housing market helped the stock market, will that continue for the rest of the year? let's ask sherry olaf son, director of the carnegie group. sherry, how good is the prognosis for both, do you think? >> good news we ask count on the strong indicator foss this to continue, but it definitely will moderate. we're now at a point where three quarters of the u.s. markets are within, on average about 3% of the actual market value. we're not going to see those big jumps. we're also seeing investors backing out, so we need to see buyers getting in. and the single biggest thing that we can see to help with confidence, which helps with spending which helps with the market moving forward, is simply

eliminate that mortgage insurance requirement that fha now has for the full life of the lone, because that's really what's keeping most first-time buyers and average and low-income buyers out of the market. >> where's that 25%? is it places lie greater detroit? areas of la us that still haven't recovered? >> sure. we're seeing it on both ends. places like nevada, and of course detroit, that are still struggling, add also see many bubble returning, where we had huge bubbles before. most are only within about 10% of actual value, but they're beginning to form. >> i don't like you using the word bubble, sherry. even a mini bubble, is it problematic because of the speed and the size of rebounding in prices. do you use that word because you feel it's not fundamental or predicated on only further gains and will repeat the experience of last time around? >> right now it's mostly because of inventory shortages.

we also have -- we're about a half million units per year short when it comes to construction, and no real signs in sight that would be eliminated any time soon. the main reason for that is home builders are still reluctant to ramp up, simply because they know most buyers can't get loans. >> when we're mentioning this term bubble, i look back to 2004 through 2006 when the reserve was actively raising rates, yet that stilltill didn't prevent t 2008 housing crisis. i just hope, i mean, if you hear anything about interest rates rising, i hope sooner rather than later, are we keeping them too low for too long? could that also be a problem to create a new reemerging type of housing bubble? >> we've seen what happens so far with the up ticks in the interest rates. it does have a negative effect. housing i think is too fragile to look at major increases. the most important thing at this point is certainty, but again freeing up the mortgage

availability is a big issue, which in turn will free up inventory, create more inventory, and really help to keep us on a slow but steady path and keep the markets growing as well. >> sherry, thanks, it's a good reminder, this is an important hand-off, and we'll see if it can take hold over the summer. thank you for now, sherry. >> sure. good to see you. an unfinished piece of business, that's what president obama called reforming and regulating the banking industry. the man who conducted that interview with our panel delving into why he's revisiting things noun. monday on the "closing bell" after you've record from sticker shows of gas prices, we'll talk to tom petry about oil, gas and all things energy. don't miss it. ♪ [ girl ] my mom, she makes underwater fans that are powered by the moon. ♪ she can print amazing things, right from her computer.

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welcome back. president obama sat down in a radio interview yesterday, and he took aim at a target he hasn't focused on in a little while -- the banks. >> we have to continue to see how can we rebalance the economy sensibly, so that we have a banks system that is doing what it's supposed to be doing to grow the real economy, but not a

situation in which, you know, we continue to see a lot of these banks take big risks, because the profit incentive and the bon us incentive is there for them. that is an unfinished piece of business. an unfinished piece of business. joining us is the man who interviewed the president. kye, welcome. it's great to actually see you. >> i know. >> were they planned remarks or off the cut cuff? ivities i think it was a bit off the cuff, but the guy is smart, and he doesn't actually every say things he hasn't thought through. it's worth pointic out that the press secretary walked back the remarks and said he's not got any regulations in mind, he just wants to keep an eye on the banks and keep an eye on the risk. so maybe he caught some of his own people off-guard. >> and certainly caught wall street off-guard. everyone was looking at each other, is he trying to help the

economy or not? zach. >> kai, hi. >> hi, zach. >> i wonder if there was any specificity of this is unfinished business, but this is how it might be finished. >> he didn't get into specifics. >> i pushed him back a bit. you could see, first, he got a little frosty when you push back on and hi advisers tensed up a bit. i think he had some thoughts that he -- he wants people to know he's still looking at the bank and how they fit into the economy, which he has said a zillion times isn't working the way he wants it to. >> i want this -- that people responded to this negatively, or maybe people were surwe're surrounded by here. do you think it's still popular for the president to go after the banks? >> that's an interesting point. the thing that came through this interview the president's

clearly frustrated that he can't get congress to do anything along his lines of thought. so he's doing all this stuff by phone and pen, as we've heard all year. i think this was part of that pop you list, i guess is the way you phrase it, attempt that he's getting to go out to the people and say look at me, i'm trying to do things, even if congress can't. >> echoing what he said earlier. kai, i know you asked hmm about the future of the republican party. i thought it was interesting. >> it took him about three or four minutes of our 15-minute, 18-minute sit-down to get to the republicans in congress, which kind of surprised me, but my question basically was -- is this where we are now, with one guy and a pen -- and in a pen -- i mean, the white house is a pen -- running the american government. he said as before, i'll work

with congressional leaders if they meet me halfway. he's so deeply frustrated. >> there's a definite battle between excessive regulation. the question going forward will be will the pendulum or could it swing too far in the opposite direction, preventing banks from growing top-line revenues and making profits even and surviving. could that be the case going forward? did they have concern? >> let's be honest, there's zero chance the president will get any new regulations going through congress. that flat will not happen. he'll dough what he can, and bear in mind the white house said he doesn't have anything specific in mind. i think he's trying to put people on their toes. on the infrastructure, he's been talking about this for the past few week of the defrayed infrastructure. why is it, do you think, there's so little movement on that in congress that's not a partisan thing, building bridges and

roads does not go democrat or republican. >> right. it's not a partisan thing at all. the interstatement highway system, it's been dwight eisenhower highway. i think it's gotten caught up in the politician of the republican caucus there and their desire not to have anything to do with the president and anything that he suggests, even though things that are historically bipartisan are now on the table. >> so, kai, simply put, how much of this is jockeying ahead of midterm elections? how much of this is setting the tone for the next few months? >> great point. >> the best thing the president can do for democrats is to get people understanding it's republicans in congress, in his view, that are not letting anything happen. the white house doesn't call you out of the blue to say hi, right? they have something to get out there. >> great point. please come join us in new york at some point here on the stock exchange. >> will do. the country ready to celebration the birth of our nation on july 4th, 1776. wee reflect on the history that

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come. december 7th, 1941, a date which will live in infamy. ♪ >> i shall resign the presidency effective at noon tomorrow. the do you off more than 500 points, october 19, 1987, wall street's black monday. 15-year-old firm born before the industrial revolution, lehman brothers, will likely file for bankruptcy tonight. five years after the bottom, the market erases its losses from the financial crisis. there it is. we're above 17,000. we have never seen that level before.

and that was today. historic. check in with our panel, reaction, guys? , '80s, early '90s? it was all flat, and then went parabolic. >> that history felt so much easier in that 30-second digest than living there you it. i remember it being much more unpleasant. >> it's funny to see how it's only been seven months since 16,000, seven months before that. it has not just been a historic day or milestone, but a historic bull run. >> this will go down in history and already isn't over yet. to your point. i was looking at the way we were covering consumer confidence and how people felt and were acting in 1995, 1996, the headlines were universally negative. consumers don't think their incomes will recover, they don't believe in the economic recovery. we are a nation of anxious people, i guess, when it couple times to the economic future.

>> and it's only when you really feel like you're getting into -- you're taxiing and being asked for stock tips that you need to stop thinking, okay, there's some serious problems here. we're not in that phase. 1982 flu 2000, stocks were essentially in a straight line up, albeit '97, there was a huge dip and black monday, so you do have volume tiff moments, but that was an 18-year period. >> that's what heather and others were saying, it's time in the markets. >> not timing the markets. yes, we are at historic highs, and so to your point, you're saying you've seen the market run for a lot longer, 1,000 days without that 10% pullback or correction in the market, so maybe this is not a bubble. markets aren't frothy. maybe we can head higher. >> if markets will go higher, we will always by definition be hitting historic highs. >> you just haven't to wonder

who is in this market. >> corporate america. >> yeah, corporate america buying back their own shares. >> whether they come in or not, that's going to be what's interesting. >> gary shrier, and i had a conversation yesterday morning about how optimists will always range, because no matter what, it bats 1,000 for hitting new highs. >> it felt different in 2009, the trajectory looked different. today standing at 17,000, it's the decline that looks like an aberration. >> i tried to bring in sparklers through security or pop-its, but they stopped me at the door. >> we did have our fireworks. in any case the market delivering it for us. that does it here on "closing bell." in a historic week, the dow closing above 17,000 for the first time, as the u.s. strings together a gain of five months in which we've hadhooded 200,000

jobs or more to the economy. i want to thank the panel for joining me this afternoon. i hope everyone has a wonderful fourth of july weekend. the cnbc documentary "amazon rising" begins right now.