>> right. just like nobody predicted the collapse. it's a good point. >> well, listen i know where i'm going and that's away. so thank everybody for watching "power lunch." i appreciate -- >> travel safe. >> i will. i'm going back to the cold northeast. thank you for watching "power lunch." i'll see you back in studio on tuesday. "the closing bell" starts right now. and welcome to gelt to close out this friday this week. i'm kelly evans at the no, stock exchange. >> and i'm bob pisani in for bill griffeth. the s&p 500 on track to close at a new high as the market posts its second straight week of gains. >> the dow is trying to close above 18,000 for first time this year and right now it's less than 100 points away from a new high. less than about 50. so you can see all-time closing high or the dow is 18,053. right now we're looking to see if the index can close above 18,000. we're at 18,001 to kick off this

hour. anything kand often does happen in the last hour of trades. stay with us. we'll bring you all the details as they play out. >> it will been exciting close. joining us ken mahoney, joe hider, steven parker of jpmorgan and lynn siindsey bell and our own rick santelli. we've seen a growth bid this week. i have been talking about it all day. consumer discretionary, tech materials. is this finally the year for growth? it's been dzefensive for a while now? >> i think it's a great sign for the market. last year was a tentative rally. we saw things like utilities and staples leading. as yields were coming down investors were looking for other sources of income. what we've seen over the last couple week those cyclical name, the tech names, consumer discretionary names are starting to catch that bid and that's a positive sign. >> is this normal for this stage of a recovery?

we're in year six. >> had isn'tthis isn't a normal recovery. a lot of what has been driving this is the yield. a lot has been focused on income generating parts of the market and now finally people are starting to believe that this recovery is for real. that's why the cyclicals are starting to benefit. >> is it showing up at all in the earnings situation? oil stocks earnings dropped precipitously. is there any other sign that growth is back? >> actually since january 1st we've seen for the fourth quarter consumer discretionary, information technology and materials. these sectors have seen their growth rates improve the most. it goes -- it's up with what's going on in the markets. we like it. >> that's encouraging because bob was saying if we have a tilt to the market where people are buying the more cyclical parts, then where are all these investors who piled into stocks for the yield over the last couple years left to do at this juncture? >> they have to follow the

rotation. sgr joo thisthis past week there's been more confidence. the last couple weeks we have had the markets have amnesia. wake up one more than dow futures up 200 points. but i think the investor is getting more confident. it's part of the bid we're seeing. if that could start easing some of the international concerns we could focus on the economy in the u.s. >> rick, we've got the two-year -- excuse me the 10-year hovering around 2% this year. there is hope for the truce in the ukraine. what is motivating the 10-year and what's going to move it in the next few weeks? >> well i think especially over the last 24 hours that we've seen bund yields actually come to life a little bit. they've been rather comatose since the big january 22nd ecb meeting. now they're moving back down a bit back into the low 30s. and i think that now exaggerates

the difference. the difference is close to 170 basis points. it hasn't been that wide since 1989. what happens when it gets wide? investors globally end up looking at the one that's the farthest away in this case the 201 yield and they look to buy that. so there's a tug of war going on. as equities improve, yields should go up. europe is pushing them back down. the feld is thed is the wildcard. we've seen a lot of jump in interest rates since the 27/28 fed meeting. even though it's steepened, it's steepened with short rates going up as well just not as fast as 10s and 30s. >> it brings up an interesting joint, joe. it's time for investors to leave some of the dferzefensive parts of the market the ones that could potentially continue to be affected like utilities if we're headed into a different climate.

>> i agree. i think it's a good opportunity for growth stocks. we like smaum capll caps for this year. we think it's an opportunity that this market will begin to accelerate and be a very track tiff year for u.s. equities in particular opposed to last year which was not a bad year but a bit tepid at times. >> now i'm worried about everybody agrees. >> right. >> one thing we've been watching really closely is the advance decline line. the averages weren't doing anything. it's like the troops were ready to go and the generals were just kind of stuck. that was a precursor to now the generals following through and now the average has gone with it. we're going to be watching advance decline line expanding and watch if it starts contracting. that's going to be our tell for us. >> you get that he is stealth rallies going on. what about the more defensive sectors. we've been talking about ewe

tults. -- utilities. is there any reason for people to sear yuzly start moving out of those more defensive sectors. >> kelly, you said we all have the same view but if you look at where the money has gone over -- >> the other side of the boat. >> it's not where money has been going. all the money that's gone in looking for yield without a lot of growth and earnings expectations for sectors like consumer staples or utilities, if rates keep going up, if interest rates move higher there's a risk you could see major outflows. >> there's been a lot of shorting in this sector. the etfs have a lot of creation as professional investors go in and try to short the sector. you can see people trying to bet against them. jo this is where the data will become so important. rick it's interesting because we're leave in this scenario where it feels like we're about to take a couple steps forward. we've heard even people like bill miller on this program saying maybe we are close to the end of the bull run in the bond market, but people have heard that so many times, been

disappointed so many times. i guess it just seems like the bond market that cried wolf. >> well listen when i talk about rates maybe going up i'm just talking about potentially seeing if we could get up to where we settled last year at 2.17%. i'm not looking for anything large. as a matter of fact, i won't fight stocks. i don't fight stocks. i understand how it works. christmas eve comes and the next day there's gift under the tree. i get it. thank you janet yellen and mario draghi. i definitely do not think the fundamentals have improved since the second and third quarter since last year. i look at retail sales, i look at durable goods, the consumer. and then i think we're still around 2.5% gdp. i see german exports picking up. the whole globe is still kind of slow. if germany through a weak euro picks up it will come from somewhere. i think we're all kind of beggaring thy maybe and i still am not address i have -- aggressive on the fundamentals.

rates might go up a little bit from here. >> we know that earnings have stopped going down estimates for the fourth quarter. is there any sign here that investors are concerned about the earning situation inq1 where we are right now 1234. >> absolutely. earnings are supposed to decline 1.9% for first quarter. we haven't had a quarterly decline in earnings growth since the third quarter of 2009 when we were in the middle of the great recession. don't forget the first quarter is also up against the easiest comparison in a really long time because last year first quarter winter was bad, bad economic data. so i think the analysts are getting a little aggressive on cutting their earnings estimates. they're also following management teams who got a little caught off guard with fx and the oil drop. >> butq q4 is turning out not to be so bad. we are all freaked out at the beginning of january and yet when the rest of the world reported, the numbers got better. 80% were beating.

>> exactly. going into at the start of the quarter right before alcoa reported, we were expecting earnings growth of 4.5%. right now we're at 7.5%. that's the standard beat you get every quarter. we could even do a little better than that. >> i could win a race if i'm running against people that are 90 years old. come on. we really lowered forward guidance and expectations. >> yeah. >> you know what's interesting, as we're getting close to a record, the vix is elevated a little bit. last time we were out the door at the record, the vix was hitting at 12 now at 15. there is some protection there is some -- even though we're here there's definitely some tentativeness to it. >> joe, what do you think drives the equity appreciation you're looking for? is it going to be earnings expansion and are we just talking earnings per share or aggregate earnings or is it going to be a little bit of an increase in multiples? i guess those would have to be some of the more beaten down multiples. >> i think it will be a little

bit of both of those things. i think that, you know the market doesn't like uncertainty, and i think what's going to help is low cost of energy. we seem to have stabilized there. so all in all, i think that's going to drive the equity markets upward. i think we'll get the same kind of earnings report 80% was early mentioned in beating expectations. >> we want to note the s&p here is at an intraday high of 2093. stephen, just tell us what could derail this little stealth rally we've been having? what -- >> or the rotation rally. >> i think there's a couple things. i think, one, we have seen a little weakness in some of the economic data over the last couple days. we've seen the tick down in things like consumer sentiment. i think there's also a lot of policy and political risks out there. we've seen what happened when you get questions around greece or what's going on in the middle

east. and after a rally like the one that we've seen anything that can shake some of the confidence that's led to this rally and some of the growth sectors, you could see that reverse quickly. the full growth outlet is still strong and we're positive on stocks. >> ukraine and greece still very tentative. >> and there will be a long weekend for investors to think about those. we'll leave it there and let you enjoy your weekend. thank you for being here. really appreciate it. 50 minutes to go. the s&p 500 sitting at all time highs. 2093, the dow just over the 18,000 mark about 40 points still shy of its high. the dow is up just about that amount today. 38 points. 5 on the s&p and 27 on the nasdaq. >> check out the chart of one of the most popular funds in america. it's so-called spy and attracts the s&p 500. it's the etf, the biggest one in the world. it's nearly doubled over the last five years. we'll have a bull/bear debate on whether the spy is a must-have for your portfolio. and up next, the federal

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welcome back. if you hadn't been paying attention, let us be the first to tell you the s&p 500 trading here at a record high 2,094. it has to close to be a record closing high. the dow is having a pretty nice day. it's up 45 points for its part. over 18,000 which would be its first close there this year. of course we're still waiting to see whether it can add another 50 points or so to close at a nominal high for that index, too. dominic chu is corralling the movers for us. >> it's almost like herding cats so let's kick things off with shares of big gaming and casino stocks like las vegas sands, wynn, and mgm. they're being helped along by morgan stanley which says positive airline capacity trends into las vegas could bode well for gaming and hotel revenues. energy shares also generally positive today on the heels of higher oil prices. the best performing sector in the s&p 500 but a notable exception is offshore drilling

contractor seadrill. they're cutting their order backlog by $1.1 billion due to continued problems at a brazilian state-run company. let's end with american express. shares are down 3% after losing 6% yesterday. that's after it said it would no longer be the warehouse retailer costco's exclusive credit card partner partner. bank of america merrill lynch analysts cut their target to a sell. >> ouch. that's been one to watch. thank you. the fed supposed to be an independent agency but there's a heated debate about how politicized the institution really is. senator rand paul out campaigning for his audit the fed will. the fed is reportedly courting republicans to talk people out of voting for it. here is what richard fischer said about it yesterday. take a listen. >> these are sheep in wool's

clothing saying they want to interfere with monetary policy and i would ask your viewers the following. they can't even get a budget together. who wants congress to run budgetary policy and the answer is nobody. >> here to discuss the fed a jim which jimmy and greg. thanks for joining us. greg, are there really signs the fed is worried about this now that the republicans control both houses and are they really conducting a bit of an outreach program as has been reported? >> well of course they're worried. i don't think it has anything particularly to do with the makeup of congress. they would be worried in matter what party this was coming from. they've done this in the past when these audit the fed movements were catching on and i'm not surprised to see them doing it again. you've seen j. powell in particular, the republican -- one -- i think he's the only republican governor on the board of governors out there taking

the lead being very very emphatic talking about this is a bad idea. and, ieryes, the fed's congressional liaison office has hired a couple republican staffers. it's what you would expect to see, an agency that thinks it's at risk of being left behind in the legislative process wants to make sure its voice is heard, that there's no questions left unanswered by the people who will make these decisions. >> and it seems, jimmy, i remember one of the recent reports i read put perhaps as high as two-thirds chance this bill gets passed. what do you think the odds are? >> the federal reserve -- wasn't that long ago republicans kind of liked the fed. they really liked paul volcker beating inflation. they like greenspan in the '90s, didn't raise rates despite a fast economy. that has completely turned around. the anti-fed level -- i don't think you can underestimate how much republicans they don't like the fed. they blame the fed for the financial crisis for enabling obama budget deficits.

and, i mean use that valentine's day theme. i think the republicans, they have an eye on another woman. a european hottie called the ecb. that's who they would like the fed to be like a very tight money, inflation obsessed central bank. i think it's been terrible for europe. i think it would be terrible for the united states. >> greg, can you clarify for our viewers exactly what the audit the fed really means? is it retroactive where you would be auditing essentially the fed's decisions or proactive where they could basically have to consult can congress before they did anything that was really important? >> no the bill would not require them to consult with congress anymore than they already do. essentially it removes a provision in the law that governs the general accounting office or i should say the government accountability office and says the controller general would now have the freedom to audit anything at the fed including monetary policy whereas in the past that was strictly off limits. you might say what's the big deal? he audits practically everything else in the country, why should

he audit monetary policy? the fed is worried about it because everything you need to know about monetary policy is out in the open. the only additional effect that having this ex post review of their decisions can have is to chill them and mick it clear to everybody making a decision in that room that what they're thinking about and deciding will be second guessed and exposed to congressional scrutiny. >> how do you think it would play out, let's say for the sake of argument jimmy, it does pass and for some reason isn't vetoed by the president. what would it mean in practice do you think? >> i think you'd have a federal reserve that would feel intimidated by congress that could conceivably, again, have all their discussions exposed in real time. i think you have a fed focused on what congress is saying about them and also the long-term viability of the instugitution as an independent central bank. that independence can be taken

away. they're going to be far more likely if they're being audited to try to please their congressional masters. i think the end result would be ruinous for monetary policy. >> greg didn't the gop used to love the fed? they loved the fed when volume kerr volcker was there. they seemed to love it when greenspan was there. has something changed? >> they blame the fed for a lot of the problems that led to the crisis. i think this is actually an important point. i believe that if a republican were in the white house, you would not have quite as much hostility from a republican congressional caucus. in fact, that's one reason why i suspect this bill is not going to become law. the republican establishment is going to like suddenly think again and say, wait a minute when we're at the white house, i don't think we want our federal reserve subjected to this much meddling. what i think is a greater risk is that something smaller than this sneaks through. >> is being anti-fed mainstream

gop thinking or is it still on the periphery? >> listen, i think it is fully within the mainstream. certainly your average republicans or your tea party republican, maybe not people in the 212 or 202 area codes but republicans think the fed is an enabler of big government caused the financial crisis needs to be reined in. i remember giving a talk to a bunch of young republicans, and they all wanted to see the fed abolished. these aren't radical libertarian kids. these are preppies. they all wanted the fed gone and i think that feeling is fairly widespread in the gop. >> and this is a discussion, evidence of it. thank you both for being here. >> just about a little less than half an hour to go before the closing bell. dow jones industrial average still on the upside. the little tension that we have here is whether we get that closing high 2,090.57 on the s&p 500. right now we're there, kelly. >> we should mention the 10-year is back above 2% as we were

talking about it earlier. tough days for utilities and a lot of talk about a rotation under way. up next, is it too late to get in on the spdr s&p exchange traded fund? >> plus two of wall street's top tech watchers share their buy list. find out if apple makes the cut. they're hitting another high today. you're driving along, having a perfectly nice day, when out of nowhere a pick-up truck slams into your brand new car. one second it wasn't there and the next second... boom!

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welcome back. another pretty strong day for the markets. in fact, this one could come with a record on it.

on the s&p 500, in fact, which it closes here would be closing a at record nominal high. it's up a third of a percent outpacing the dow because the dow is stay weighed down by the performance of american express. that name down almost 3% after a drop of twice that size yesterday on that news that it will be ending with costco, its agreement to use the am ex credit cards in 2016. everything else holding up a bit better on this friday. >> and the s&p is hitting at the highs for the day. we're poised edd for a new historic closing high. is it too late for investors to bet on the spdr s&p 500 exchange traded funds, the spy? >> joe durant is joining us saying there's plenty more room to run. matthew tuttle thinks the market is overbought and due for a sell-off. welcome to you both. so matthew, i want to start with you because this seems like one of the most obvious investments of all time. you buy the cheapest way you can access the index fund and sit on

it. why wouldn't you want someone to do that? >> i wouldn't want the spdrs here. the market will make a near herm high then 14 years later it makes a near term low. 14 days later it makes a high again. so we fully expect sometime other the next 12 to 14 days we could see the s&p 500 at 2,000 or below. >> really? and exactly -- just follow up on that, just give us ten seconds, why exactly it's going to drop so precipitously? we're talking about better than 20-point drop here. >> there's a couple things going on. first off, greece hasn't been solved by a long shot. second off, anybody who believes that, you know, putin is going to honor a cease-fire agreement, i have a bridge somewhere to tell you. then you have the fed, which is the 800-pound gorilla.

the way we look at it this rally has been mostly fueled by the central banks. once the fed exits, a lot of investors are going to follow suit. >> and i just want to clarify, you think that the s&p could go 2,000 in the next few weeks. we're at 2,094. that would be a 94-point drop. that's pretty significant. >> oh yeah. we could definitely see 2,000 or maybe a little bit below that depending on kind of what goes on with greece the ukraine and what news we get from the fed. >> let me ask, we should distinguish between a trade and an investment here. but on both fronts do you like buying the s&p etf? >> well i think the most important thing i'd share is we see clients every day and compared to the late '90s when we had to tell people to reduce their risk people are still under invested in stocks. the average person watching this show. and what i would suggest is it might be possible we go to 2,000, but i would absolutely not be betting against this

market. we have too much tailwind. it's the third year of a presidential cycle. the idea that the fed is actually going to raise rates or that the world's governments will stop funding the economy, i just don't believe it's a possibility. we have too many risks still out there. the fed has always proven to be slow. there's no hint of inflation. and what we see that's really bullish is unlike the rally that's happened recently which is led by real estate recovery for the last few years and the fed, we're seeing job expansion. that will have significant impact to gdp. there's nothing more powerful to the stock market than the average american getting work and getting pay increases and that's what's going to come. >> this also goes back to the whole idea of active versus passive investing to some extent. if i wanted to buy basically the s&p 500, is there any better cheaper, more efficient way to do it than this etf, this particular one? >> look i would say the one

cost is you're in only the 500 stocks. the russell is at new highs too, which is an encouraging sign. you maybe have a little underexposure in international and i think europe is a really interesting way to play but it's a great, safe low cost way and if you're concerned about timing, hey, i don't want to get the top, just ease in. take your time getting in over the course of the next month or the next two months. i think you've got -- most average people have to think in months and years, not in days and weeks. >> this is far and away the cheapest way to own the s&p 500 far and away. i'm a little surprised about that 2,000 call. that got my attention. >> yojoe, we appreciate you putting it out there. we appreciate you joining us. nice to have that kind of bull/bear debate. >> i still think the rather thanearnings situation is improfferingving. >> if you're going to invest in

the market invest in the market the cheapest way. you buy the s&p etf. >> its literally a few basis points. it's literally almost dirt cheap. >> should we apologize to the audience that's not going to be here for the whoop whoop. >> it happens 3:33 every friday afternoon. it's one of the traditions. >> and we seem to time our commercials for it. you can hear it in the background. maybe some cheers for markets at all-time highs. half an hour to go and much more coming up on gelt"the closing bell" keeping an eye on the s&p and the dow for record highs. >> before the break, here is bertha coombs cnbc business news update. >> thanks bob. here is your cnbc news update at this hour. greece and its international creditors have begun talks to keep the country financed. greece says it will do whatever it can to reach a deal with the eurozone. greece's current bailout program runs out on february 28th. here in the u.s. import

prices fell 2.8% in january. that's the biggest drop in six years. meanwhile, export prices tumbled 2%. and the national highway traffic safety administration says a record 63.9 million vehicles were recalled in 2014. that's almost twice the previous record of 30.8 million in 2004. and how would you like to walk in kanye's shoes? well, now you can with his wife kim front and center. kanye west debuted his new sneakers with adidas at new york fashion week. right now they're only sold in new york. style doesn't come cheap. that's $350 a pair. not including tax. thank you very much. find out how fashion week is going high just ahead to cnbc.com. i'm bertha coombs. much more "closing bell" after the break. what the cloud enables

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let's get a quick check on the markets here. 2,090.57 would be a record closing high. the dow likely won't hit a new closing high.

18,012 and 18,053 is the old high. we have a shot at that. here is the nasdaq. we're at a multihigh up 0.61%. >> this happening as president obama is hosting a cyber security summit in silicon val y valley valley. >> eamon javers joins us with how the event is playing. who is not there? >> a lot of big tech and business executives but we're missing the big ceos of google and facebook and yahoo!, all sort of interpreted here as a big of a snub to the white house as fallout from the edward snowden nsa revelations. we did have tim cook here the ceo of apple, and it's interesting to note the differences in the speeches we had from tim cook and from president obama. tim cook comes to the cyber security summit but he wanted to talk about privacy. he said that if we give up our right to privacy, we give up more than just security we give up our whole way of life here. so a different emphasis there

from tim cook maybe some veiled comments aimed at the federal government directly. president obama just finished speaking here and his comments very much focused on that cyber security piece. obama really emphasizing the dangers out there to the nation's infrastructure. take a listen. >> foreign governments and criminals are probing these systems every single day. we only have to think of real life examples air-traffic control system going down and disrupting flights or blackouts that plunge cities into darkness to imagine what a set of systematic cyber attacks might do. this is also a matter of public safety. >> so, guys some scary comments from the president of the united states but it wasn't all doom and gloom here. the president took some time out to make a few jokes, including noting that some of his own passwords were 1, 2, 3, 4, 5, 7, and password. so he said even he is not imhewn to taking the easy route when it comes to cyber security. >> it's gotten more complicated

than that. eamon, thank you so much this afternoon. our eamon javers in california. white house senior adviser valerie jarrett, speaking with us in the next hour of the show reacting, of course, to all of this. be sure to catch that one coming up. >> just about 20 minutes to go before the closing bell. the dow jones industrial average is just off its high here and the important thing is we're looking at the s&p 500 as of now we are set to close at historic highs. up next tech picks you can't afford to miss. wall street's top pros name names of what they're buying. >> later when jamie dimon talks everybody listens. wait until you hear dimon thinks we should get young people ready for the workforce. plus our all-star panels weigh in on whether his ideas will gain traction. and i get a lot in return with ink plus from chase. like 60,000 bonus points when i spent $5,000 in the first 3 months after i opened my account. and i earn 5 times the rewards on internet, phone services and at office supply

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rates. it's a fact. kind of like mute buttons equal danger. ...that sound good? not being on this phone call sounds good. it's not muted. was that you jason? it was geoffrey! it was jason. it could've been brenda. quick market check. again, a little bit of suspension about whether we're going to close at new highs on the s&p 500. we're still holding there 2094 is where we're at. dow jones industrial average, 18,053 would be a closing high. we're still 40 points away. nasdaq composite, we're at a 15-year high. nasdaq 100 also multiyear high. >> that index having again the

best performance of the day and our dominic chu is highlighting some of the tech movers. >> this is the best performance for technology since back in october. again, one of the best performing sectors overall this week to date. it's up 4.5% and in honor of the white house cyber security summit, let's get a check of a couple big movers in the industry. fireeye stongck is up 33% year-to-date. there's shares of cyberark gaining 18% today. they reported earnings yesterday that came in above estimates that are about 36% up for 2015. they have more than tripled since their ipo price of 16 bucks last september. and let's end with a noncyber security company. it's just apple because we want to talk about the biggest company in the world. a record week in terms of both stock price and total market value. $127.48. that's the record high introaday.

the company is now worth close -- it's up about a half a percent right now. apple shares certainly a focus for a lot of investors. back over to you. >> yeah dom. thank you. tech stocks feeling the love rallying after a slower start to the year. >> if you're interested in trading this tech turnaround what should you buy? let's go stock shopping with gerber ka what could you whata -- >> this is not exactly been a terrible few years or tech. i guess the question is can we continue to have tech be the growth sector that actually really has done well in the last several years? >> great question. pleasure to join you. thanks for having me. i think tech will continue to be strong. i think it will be a little less strong in terms of its position

vis-a-vis some of the other sectors because we had people forced into growth. we have tech able to deliver that growth with a huge penalty to safe assets. my guess is that the safe asset penalty will come down a little bit and tech has just done so well. you're talking way over 300% since the trough in 2010 that we are going to see a little rotation and the other kind of problem with some of the big tech names is it's kind of become the case the last few years of the two other big issues. one, there will be a ton of ipos which detract from some existing names and a lot of the most exciting stuff in big tech is in private tech not the public names. >> investors are starting to get selective. is it just apple, apple, apple as far as you're concerned. >> you know kelly, i do sound like a one-trick pony and i have been telling you this for months, that this is the easiest money you're ever going to make in your life. apple is even poised to go much higher. carl icahn's letter was perfect this week.

could you just own one stock and you'd be fine with apple, not that i recommend you do that. >> if you had to own more than one, what other names do you like? >> no other ideas. >> i like a couple other stocks that i consider tech. one that's come down a lot is go pro. we've been looking at go pro as a technology play and really what the potential is for go pro in the entertainment business but also through streaming live events from athletes. i think this could be huge opportunity for them and they can keep expanding what is a hardware business into a much bigger software entertainment business a la apple. and apple should go out and buy go pro right away. the other stock i like a lot at this price is tesla. they've come back down a lot. this is a technology company. this is not a car company. they're revolutionizing electric cars but the batteries are what it's all about and in the next three years this battery factory is going to be a monopoly on these high powered batteries. those are other plays in tech i really like. >> max, i like what you're

saying about the concerns about tech. ipos are going to be competition and private equity a lot of money is flooding into private equity into the tech side. the other thing i worry about is just the valuations in general. a lot of these tech names have been going up for a while now. i don't know what the average pe in the nasdaq is, but it's got to be over 20 25 at least, right? >> pushing 30 actually. >> 30. >> we would tend to agree with you. look, the stuff that's on sale is kind of few and far between. we do think there are some second acts in the space. part of what has happened in techland is that the winners, the perennial winners, netflix or apple, have kind of run away so they're not cheap anymore and the perennial losers have continued to get beat up on. what we look for is stories that are much better shape than the market gives them credit for. and they are what begins to stick out. names like yahoo! which we still think is a little bit on sale and even amazon which we think has turned another corner. obviously not a great place to look at amazon if you're looking

for a discount pe but price to sales is interesting. >> yeah. amazon is probably one of the most expensive companies out in the stock market -- >> on an earnings multiple. >> absolutely. >> but on a sales multiple less than two. >> you could say that all day long. the issue is profits and apple is not an expensive stock and you can't look at the index as a whole. you definitely have to look at the individual names but tech can have much higher pes and it can go much higher. it wasn't 15 years ago when we saw nasdaq at the same level. the potential is huge and you have to be an investor in tech nothing. >> thank you both. ross gerber max wolffe. we have 13 minutes. art cashin said -- >> beerwe're at the highs. >> we're close. the dow is up 38 points. sitting above 18,000. it is the s&p as mentioned that's about to have a record

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welcome back. bob pisani on the floor of the new york stock exchange where we are poised to close at a new historic high for the s&p 500. 2096. we need to get over 2090. looks pretty good we'll get there. 18053 as i really was the old closing high at the end of december. they won't make that but s&p 500 is good enough nasdaq at a multihere yi multiyear high. joining us is peter and david. both of you are old friends. we have had an interesting week. i keep talking about this sort of growth bid that's in the market with materials and financials and industrials moving to the upside. everybody wants to know whether that kind of move can continue after last year we had defensive moves. >> them watching you say this all week bob, and you have had profits surprise to the upside for this first quarter. 3.8% is the number. they were looking for 1% but

doing better. secondly oil may be stabilizing, could be making a double bottom here. thirdly, ukraine's cease fire who knows how long that will last. fourthly european central bank coming in and the imf helping greece. so these things i think -- the market and finally jobs. jobs and average hourly earnings. that's a nice constellation of positive forces and they outweigh, bob, the slight negatives, the retail sales numbers and the jobless claims number which were elevated this week. >> peter, you have to admit things have calmed down a bit. there's a lot of cynicism about ukraine cease fire but it's better than ukraine no cease fire. >> right. >> and oil is moving in a more narrow range. what should we worry about now? >> all of those reasons, and to me anytime you have that perfect scenario where everything seems to be hitting just right and the market is just struggling to break through new highs, we've not seen a major, major move

where we have seen it bolt 150, 200 points off to the races, everyone is happy. we've seen it break these levels, every resistance level, they've broken them and then come back and retraced their steps. even though we have a lot of positive influences going forward, and i do think we do, i still think that whenever you see that and the market doesn't react fully running out, then there's something holding it back, and i think maybe it's investor sentiment or maybe there's something that we're not really paying attention to. >> short answer if we clear some of these concerns over here, greece gets a deal we get a cease-fire that actually holds a little while in europe -- in the ukraine, could we actually move significantly up? >> then you will see i think that volume come in. there's a lot of cash sitting on the sidelines. american investors are sitting on something between 18% and 20% on average bob, in their accounts in cash. >> we're going to come back

after a short break. the suspension here, are we going to close at new highs on the s&p 500 and some other indices as well we'll talk about. don't go away. "the closing bell" is coming right up. and i quit smoking with chantix. quitting smoking is a challenge and it's a lot easier to go into a fight when you've got somebody that's got your back. having chantix as a partner made it more successful. along with support, chantix (varenicline) is proven to help people quit smoking. chantix helped reduce my urge to smoke. some people had changes in behavior, thinking or mood hostility, agitation, depressed mood and suicidal thoughts or actions while taking or after stopping chantix. some people had seizures while taking chantix. if you have any of these stop chantix and call your doctor right away. tell your doctor about any history of mental health problems, which could get worse while taking chantix or history of seizures. don't take chantix if you've had a serious allergic or skin reaction to it. if you develop these stop chantix and see your doctor right away as some can be life-threatening. tell your doctor if you have a history of heart or blood vessel problems or develop new or worse symptoms. get medical help right away if you have symptoms of a heart attack or stroke. decrease alcohol use while taking chantix. use caution when driving or operating machinery.

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all right. a little bit of drama here because we're on the verge of closing at historic highs on the s&p 500. here it is and here is the march up. this is an intraday chart you're looking at.

oil was a little bit weak in the middle of the day. also i want to point out the russell 2000 sitting and poised to close at a new high as well. here is an intraday for that one. what i think is very important here guys is small caps, new highs. big cap s&p 500, new highs, and we didn't put it up but the midcap index also at a historic high as well. small, mid large, what is this -- put it into context for us? >> well, i think the small and mid doing well they are domestically focused and they are indicative of stronger economic conditions within the confines of the united states. you saw that economic trade number that came out, $49 billion deficit, the latest numbers, up from $39 billion. so the u.s. company that is have overseas operations and overseas earnings have lagged behind. now, they are -- the midcap is in its 75% percentile of

valuation whereas the small cap is in its 95%. so it's a bit more overvalued. therefore lean to the midcap. >> you're saying small caps are not cheap. where do you see any value at this point? >> i would like to reiterate what david said but also i think whenever you see the small caps rise to new highs that means people's risk tolerance is going up. a lot of people put money into small caps when their risk -- they are willing to risk more of their money. so i think that's part of it as well. you know to me value like david said it's u.s. centric companies, they're the one that is will continue to do well. dollar/yen or dollar any kind of risk is off the table because they're a u.s. company. >> we have noted europe has outperformed the united states this year. maybe just on a relative valuation play maybe on hopes that things will start to work out with greece. now that we're hitting new highs here in the united states does this argue to take some chips

off the table? do you sti stay in the u.s. or start going into lower valuations? >> i think you can begin to trim a little in he willreal estate investment trusts and you can put some of that in europe. there's a europe index that's hedged. you know, there's two of them. one for all of europe including uk and witsswitzerland. the other is just eurozone. eurozone is up 7% versus 2% for the u.s. stock market. we would add to europe at these levels. >> dollar. do we see any hope the dollar will finally stop that relentless rise we've seen against other currencies around the worltd? that's been a factor in stabilizing the markets. >> a huge factor. i think there will be more movement. i'm thinking it's going up a little bit more. i don't play the dollar market per se so i think it is going up a little bit more. >> i want to thank you both peter costa and david darst. we're at a historic moment here because we're about to close at

new historic highs on the s&p 500. the big cap index on the midcap and the russell 2000 as well. we're going to do it here. dow jones is the only one that didn't quite make it. everybody, have a good weekend. kelly evans is next on "closing bell." thank you bob. welcome to "the closing bell." i'm kelly evans and you know what that graphic means. we're talking about record highs on wall street on the close. the s&p 500 going out with a gain of about let's call it eight points on the session. good enough to close at a level of 2,096, 6 points better than the prior all-time closing high. the dow putting in about 50 points for its part but it's still 50 shy of a closing record. only about a quarter percent gain in part because of the weakness of american express. a strong session for the nasdaq

up .75%. settling here roughly at 15-year highs. let's bring in today's panel. joining me is jim levan that will and eric chemi and steve liesman liesman. and art cashin off the floor and steve grasso joining us momentarily. art, i will let you kick it off here. sudden strength we're back at all-time highs. is it because oil has stabilized? >> it's a combination of things. it's a continuation of hopeful signs in europe. there have been no run on the greek banks. people have not taken to the streets, so they think perhaps a deal could be there. while they're still shooting in ukraine, we're waiting for the cease-fire to be implemented. but you're dead right. oil was strong again, and that helped put a bid under equities. people think if it's stabilizing, that will be a good

thing. and other than that believe it or not on a friday the 13th the market has an upward bias if you go back through history. >> we'll take what we can get. i wonder if for this gains to continue, oil has to stabilize or continue to move higher. >> i think oil is the effect and not the cause. i think the cause is the realization that europe might be bottoming. art mentioned greece and i don't think the market is so much trading on that today nor on ukraine where a cease-fire may or may not take hold but the idea that europe might be bottoming is something that wasn't expected a month ago and that's adding a lift that gives some weight to the fact that the u.s. economy is going very strong and if europe can come with it we can set more highs. >> are you in the rotation camp? >> no. you mean sector rotation? >> yes. >> i'm in the buy great companies at good to great prices camp and i don't mean that in a sassy way. i think it just depends what industry you're in whether you're going to find those good companies and rotation will find you sometimes in industries that

are really quite terrible like basic materials where everybody is clawing all over each other for the lowest cost or production production. >> i raise it for another reason actually because i want to get our chief economics correspondent to weigh in on it in a second but are we seeing people moving out of utilities close to correction territory because they're thinking we're in a rising rate better econ environment? >> i think they're moving out because of the interest rate scenario. i think the 10-year is going higher so utilities are very interest rate sensitive. >> steve, is it all happening, is this the moment? >> you know i think there is a better economic data than the headlines seem to be suggesting. and i know the market got a spook yesterday with that disappointing retail sales number. second month in a row. and it's really a mystery and i have been a bit like sherlock holmes the last couple weeks on the mission here trying to find out if a million more americans have jobs in the past three months, if gas prices are half of what they were in some cases

than they were say this time last year or even six months ago, where is all the money? and i have come -- >> you mean because retail sales keep missing? >> exactly. i have come to the conclusion this is one of those great mystery that is there really hasn't been a crime committed. when you look around and you see the jewel has not been stolen there's nobody actually dead and the reason is this. we're not looking in the right places for the spending. and i talked to steven stanley today and he points out when a consumer has an extra dollar today, they're more likely to spend it on a service than they are on retail and the retail report doesn't have services in it. if you could put up this chart, you will see what happens to services over the past several months compared to core retail sales and the money is going into discretionary services and you can see that in leisure and hospitality hiring, you can see it in hotels see it in the booked planes. they're spending the money, just not going into core retail. >> we'll get into this later but we could use valentine's day as a good example here of the kinds

of things people are buying. sgroo >> we talked about this a couple weeks ago with grassas prices. people didn't actually put it to use in the places steve is talking about. when we talk about the markets, two weeks ago remember it was the end of the month in january. everybody was talking about how bad of a month it was and we said the last time we had such a bad month, last year was a great year. so we've been in the same range. if you look at the dow, you look at the s&p, it is just moving within the same round numbers, and it's not really going anywhere. if you put up a three-month chart it's just going up and down, up and down. we have a little bit of a high but not a breakout high. >> steve grasso joining the conversation here as well off the floor. >> hi kel. >> has this market the volatility, has it won you over to the bulls side -- >> if you look at it on a technical level, it's not really a blow off top. if you look -- everyone was hoping -- i should say the bears were hoping for that head and shoulders pattern in the s&p and the russell and the dow and today we took out that head

level which is 2,093 in the s&p. so is it really a great takeout being 2,096, no but it's still a take out. iwm, not a great takeout there but it's a takeout. if you believe in the truth of technicals, then you really can't be a short seller until the market gets overbought. we're not there yet. but you were the first person on air to say where is the money going? the money is going to a large extent -- >> obamacare. >> health care. so that's a huge part of it as well. >> wait a minute steve is not buying it. >> we looked into that as part of our search for the mystery and we can't find a reason. i think it was a story for last year and this year the story is people paying the penalty but a lot of people who owe the penalty will have a reason not to pay it legally not to pay it. we're not seeing that septemberseptember -- >> i think it's just health care as a whole. my premiums are up year after year. last year they were up 25%.

this year they're up probably close to a like amount. >> what we could be seeing steve, and what's interesting is a lot of discretionary health care was put off during the recession. we put off people doing stuff they put off a number of years. >> i think that's a great analysis. the experiential versus the actual goods being sold. here is the thing, first off, i think the retail sales data is understating. it's missing something because we do our own channel checks and see a lot of traffic in the stores but we could be wrong. the good news is over the next two weeks you will have all the retail sector reporting, and the mystery if there is one -- >> good or bad news. if we're spending at restaurants and services and trips and all these other things that won't be good news. >> what kind of retail. is it walmart type of retail? >> you have the whole thing. it's a great question eric. so on thursday i believe it is you have walmart at the low end. you also have nordstrom at the quasihigh end but the bigger point being as we know the retail sector usually ends its year january 31st.

over the next two weeks you have pretty much everybody from kohl's to target to macy's. >> i need to add a complication which is the numbers reported by the government are nominal numbers. did you see the import prices? biggest decline since 2008. a lot of that is oil but even consumer imported goods are falling in price. so one -- some of the thinking that's out there, mark zandi pointed this out to me yesterday -- >> the strong dollar? >> the strong dollar lowering prices so on a nominal level we're down but we won't know until the end of the month when we get the cpi what's happening on a real level and from an economic point of view real or inflation adjusted is what counts. >> art, help us understand what's going to be the main driver of the market? >> a couple things. you have to have europe deliver, okay? you're going to have to see where is the beef and prove that we're not going to have some disruption out there. to grasso's point, a breakout is not a one-day event.

you have got to close above those necklines and breakout areas for at least two to three days and then you can consolidate and maybe take off again. and the other thing is janet yellen is coming up and we're going to hear a little bit more about fed policy and hopefully we'll get past being data driven and get a little better handle on where things are going. >> so that event is coming up february 24th. that's her semi annual monetary policy report to congress. there are a lot of people who think that could be a significant turning -- >> i don't want to dash art cashin's hopes though but i don't think we're going to get out of being data driven. we're going to remain data driven. the biggest question is going to be do they remove the word patience in march. i'm not sure we get that from yellen at the testimony that's coming up but i think at the end of the day you're going to have to continue to watch the data to know what the fed is going to do and it's a matter of watching inflation and watching core inflation, watching wage inflation, and then thinking about how they're going to process this strong jobs number

into a zero interest rate policy where some people think it's increasingly out of whack. >> but the data is driving the markets crazy. we're data driven already -- >> but that's why they pay you the big bucks carbon. >> that's why we love this job. >> steve, what levels are you watching? >> it's got to hold -- to art's point, i always say the three-day rule. it has to hold that 2,093 level in the s&p. the dow is the only one that didn't take out that head of the head and shoulders and that's up at 18,103. so you want to look for a little strength, a little follow through next week. you have to get that follow through before you start fading this market but i would watch these levels right now. >> all right. will do. we've got our numbers. thank you, sir. steve grasso for joining us art cashin as well. >> have a great weekend. >> thank you so much. there's more coming up with steve grasso and "fast money" at 5:00. there's much more ahead of our special market rally coverage.

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joining us now to talk more about the market rally, we welcome dennis gartman from the gartman letter and larry mcdonald. welcome to you both. dennis i want to start with you because the whole conversation last block started with the price of oil. stabilization has been key to the market stabilizing and moving higher. are you still bearish ultimately though on the price of oil from here? >> i think ultimately crude oil probably does go lower. early on when it was trading above $100 i was on the program one night saying i thought it would go to somewhere close to $20. which at the time sounded prepos preposterous preposterous. we got reasonably close. we started to see the term structure change somewhat bullishly. we've seen oil stocks doing quite well, so you have to be reasonably impressed. i still think we might see new lows but, you know, maybe i have to give that up. the important thing in trading is to understand when you're wrong and i've been right for a long time on crude oil. perhaps it's time to stop saying

it's going to make new lows. i own a few oil companies just to hedge my own position. we'll see if that pays off. >> larry, i asked obviously to bring that back out to the broader market question, how important do you think the movement of the oil market is important to the overall market. >> i was on the show in late december. the systemic risk of lower oil is so much bigger than people think. the fact it's risen, ukraine is better, russia is better with higher oil. and greece is better. so that's systemic risk of those three is giving the market a relief rally. >> we know that's a key factor. we know some other hotspots that you 34e7xmentioned have been an important part of this. greece has until the end of the month to come so some sort of agreement, make its big payments march 1. is it your estimation this all works out? >> the problem is greece if they do a deal the situation in spain is big because.

if you look at earnings, david einhorn has been talking about it for the last couple quarters the lower end beat. the amount of negative guidance is 5.6 to 1. >> their fairly common. >> but historically it's 2 to 1. >> you're right but there are a couple things temporary going on with that. one is the strength of the dollar. the other is the collapse of oil, both of those caught analysts by surprise. the magnitude of the effect on earnings during the fourth quarter. so i think what you're seeing in the numbers you're displaying is an overreaction which always happens. the first quarter's earnings reports are probably going to beat expectations because they've been decimated. >> what drives it from here? you have the strong dollar the oil price factor, the greece question. what does it come down to for you? >> it comes down to earnings and particularly in the u.s. i think oil as i said earlier is more the effect than the cause. you're pointing out some very

good things about spain. there's a market belief out there that greece is less important now because spain and portugal and ireland, particularly ireland are a bit better. you're throwing some cold water on that which is fine. we won't ever know until greece actually exits which we're not hoping for, but what we see here and what we expect is when the first quarter comes through, that there's going to be earnings expectations from this really decimated estimates that have come out and that in conjunction with at least it looks like the core of europe germany might be bottoming. gives us reason to believe that we can go higher from here. not shoot the lights out. we were using the term breakout. we see 5% to the end of the year. >> i like what you said about oil is the effect not the cause because that changes the whole perspective. if you think of it that way, it's not an oil-driven market it's just something happening to ail and everything else is what's happening to the market. >> how do you look at oil, dennis? >> when oil was declining i was

amused that people were looking at declining oil prices as being bearish for stock prices. now you have the flip side of it which doesn't make much sense either. the trend is from the lower left to the upper right. let's try to keep it simple enough. i used to use the ex preparation that the stock market for several weeks was like a beach ball held under water. eventually we lost control of it eventually it broke out to the upside. anybody who has been short of stocks has found themselves in a very uncomfortable position and is likely to continue to find themselves in an uncomfortable position. >> listen i apologize for jumping in and going backwards to the retail discussion but i point to point out there was a little bush that nordstrom just hiked their dividend. you don't generally do that -- i'm not arguing with you, steve, about the points you're making. >> i'm ready to argue if that's what you want to do. i do that professionally. >> i noticed which is why -- >> km on bring it on. let's go. >> i don't think you raise your

dividend unless -- >> because no ceo wants to lower their dividend. >> that's exactly right. >> one other area which is one thing that got me onto this issue is maybe consumer spending is stronger than we think. restaurant spending has been above for the past four or five months. >> you analyze it it's pretty strong. >> it's a pretty strong number. you ask yourself what is the first thing to go when times get tough? it's eating out because you can always make a sandwich in my case with a little mayonnaise on it at home rather than go out to a restaurant. >> let me bring our resident bear if i can call him in though, larry. your view sounds different from most other people's here which is it's much more cautious and you're worryied these events won't play out. >> the problem is the amount of people working full time in the united states is drastically lower than it was in 2007. 37.4% of the population versus close to 40% had full-time jobs

in 2007. restaurants are doing well, that's where the job creation is in those types of spaces. theme people that work -- >> i don't agree with that. >> quickly. >> it's not like it's news. it's not like it just happened today. we've been aware of that number and it's not coming back. so i don't think that's what affects today's market or february's or march's market. >> no, but it's that underlying fact that this is the new normal. everything that mohammeded el-erian and other economists have been talking about, that the growth is not tradition kraal and small shocks have a big effect. >> dennis where is the beach ball going next? >> the beach ball is still going higher. there's no reason to think otherwise. take a trip to topeka, kansas, go to st. louis go to the middle of the united states and see how strong the economy is going there. it is very impressive and i think it tells us earnings are going to do well consumer spending is going to be better. i see no reason to think this is

going to change. a lot of people have been bearish, very smart guys and they have been wrong. >> can i commend dennis on using a summertime metaphor. beach balls. let's just talk more about that? >> agreed. next week we will be taking the show to flo forrida for that reason. thank you so much. and we're not going to florida, we just wish we were. jamie dimon says the economy is going well but he says he's worried about young people getting left behind because they don't have the job skills companies need. his solution is next. and for the men in our audience a new study finds your significant other may be a better stock picker than you are. that should be make for some interesting discussions on valentine's day. you don't want to miss that coming up on "the closing bell." there's nothing more romantic than

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welcome back. the columbus ohio chamber of commerce held its annual meeting yesterday. among the attendees was jamie dimon. in an interview he covered a wide range of topics from what to do with bad workers to washington's ineptitude. he expressed a concern young workers are being left behind in this economy. did you take a look at his remarks? >> i did. >> what did you think? >> the numbers are really astounding and quite negative but i'm wondering if columbus is the data point we're supposed to be looking at. you know ohio is smack dab in the middle of the rust belt which hasn't seen a lot of growth -- >> let's begin with what he said about young people.

>> that -- i forget what the exact number but some unbeliever unbelievably high percentage of -- >> 12% of the region's youth population are neither in school nor working. >> that's disastrous. they can't get jobs. >> that's a lot of urban cities. you look at new york city. it's not just about ohio it's not just about the rust belt. i think this is an urban thing. >> is it much worse than it used to be? is there some sense 12% is pay higher. it would seem perhaps we've made progress or no? is there any context for the figure? >> i think the problem is we're competing with in germany people who come out of schools with specific schools and indians -- i don't mean to select particular nationalities but a lot of people who immigrate to this country are wonderfully talented and ready to enter the workspace and these guys without high school degrees, my heart goes out to them because i don't know what they're doing to do.

>> there's never been a bigger gap between the oweproportion of those employed who have a college degree and those with a high school degree. >> you seriously diminish your chances of being unemployed the further up the education scale you go. i think what we're talking about here does speak well of really a bipartisan concept that's out in washington right now which is to support community colleges. how you do it different question. should it be free should it not be free but certainly a way in terms of making sure that youth have the skills that are needed is a more tailored educational program and i have spoken to people on both sides of the aisle that support community colleges as a way to do it while they disagree about the way to fund it. the concept of community colleges which i went to visit one this charlotte at piedmont college, working closer with businesses to create apprenticeship programs may be

the way to go. >> how about vocational schools in that regard? how about vocational schools? >> i think that's a way to go. when we say this -- >> you mean vocational schools at the high school levels? >> as we say this, we reluctantly leave behind the dream of the liberal arts education. personally -- >> fine. >> i don't like leaving that behind. it's still something that's a concept that you have a better more informed citizenry that has -- >> but it doesn't have to be a one size fits all. >> this is dimon's suggestion. he was modeling it after the german approach which is where schools and workplaces work together to have students prepared for the workplace. it's not a liberal arts education but talking about young people who need to get an education, his next visit was to the ohio state football team that won the national championship. those kids aren't getting an education. we all know that. we're not staying in school to play football and learn anything. he sounds like a politician. he's getting ready for his next career.

>> there are plenty of executives we hear from who say they can't find any skilled workers. sometimes if you ask them what they mean by skilled it is the liberal arts skills and other times it's more vocational skills. >> i hear from a lot of cyclical companies, railroad consider manufacturers that they can't find good welders. trucking companies that they can't find enough truck drivers. and that's vocations that you can go get trained for and get a job. so that's why i asked you, steve, if you agree with vocational schools because i think -- and i'm more in the passing of a good liberal arts education as well. i'm just being realistic, i think that's where the jobs are. >> is there a sense that the long-term unemployed the problem that has been more recent in this country and a result of this downturn relates to this issue of this skills or education gap or no? >> for sure. in two ways. one is that more likely those who are long-term unemployed do not have the skills and then compounding that issue, the longer they are unemployed the less employable they are.

there have been behavioral economic studies. same resume but one guy is -- one guy or girl is out of the market six months longer fewer call backs than the person who was in a job or recently left. and that's this concept which is in fed speak which is this a notion a cushion goes down on a couch and it doesn't bounce back up. >> you don't want the 16 to 24-year-old cohorts starting from that down place. >> here is one more concept. in economics when you lose time you don't get it back. every year that -- you can't get back your 17th year or your 18th year. so that's why all of these decisions and all of the policy decisions are so incredibly consequential because they have reverberations throughout a person's lifetime of earnings. >> we'll leave it there. thanks guys. white house jean sorenior adviser valerie jarrett lays out president obama's plan to take on cyber crime. first, bertha coombs has a news update for us. >> here is what's happening at

this hour. the obama administration will allow cuba's small private business sector to sell some goods to the u.s. the state department issued the list of approved products today. tobacco and alcohol are not on it. anthem it offering two years of free credit monitoring and identity theft repairs to customers. last week hackers broke into one of the health insurers' databases where information for 80 million people were stored. a prosecutor in argentina has reopened an investigation into allegations the country's president was involved in a cover-up of controversial negotiations with iran. anded a today's white house cyber security summit in california, tim cook announced the u.s. government will start accepting apple pay for certain transactions like admissions to national parks. i'm bertha coombs. more "closing bell" after the break.

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♪ your ticket to a better night's sleep ♪ welcome back. these records smashing markets are firing up cnbc.com. so is a special piece by allen wastler who joins us with today's hot list. >> another market day flirting with new highs that always brings in the market crowd to check out our coverage. we also had two related stories. one seven companies getting hammered by currency changes and

how that affecting the markets, mostly companies with lots of overseas sales, of course and the top stocks that are thought to be hitting in in 20135. we put that up. also the readers have been fascinated with what's going on with the west coast ports. the ship lines have been tussling with the union over a new contract and that's resulted in shutdowns of the ports. here is something clever to think about. they're calling this an operational shutdown because of congestion okay? but effectively it's the same thing as a lockout, but by not calling it a lockout, the shiplines are able to side step labor laws that would allow the white house to come in and tell people to open up the ports. that upsets all the retail efforts and customers moving goods through the ports. think about this.

those ship lines are the same ship lines that bring it to the east coast. they're not going to lose the business at all. they're just going to reroute it differently. everybody using those ports has got to use the same ship lines. there's just no choices on it kelly. so readers have actually been digging that kind of argument and getting into the whole, well, it's the union's fault it's a lovely debate people are loving it. >> they're trying to understand what kind of effect it is taking on our trade and export traffic. >> the west coast ports have had problems for more than ten years. strikes, last year there was a congestion of chassis under which the intermodal containers go. basically they have been a mess for a while and the one word that should be on every constituent's mind in that mess is vancouver. because we were talking a minute ago about going to the east coast. forget that. just go up to vancouver, put it on canadian pacific and canadian

national and you will take care of this. >> there's a widening happening in the panama canal and then we're talking about the east coast ports that would happily take this traffic. >> it's easy to say vancouver is a lot closer to los angeles -- >> and it's not america which makes it more of a threat steve. >> a point there though kelly, vancouver is actually -- there's reports that they're already maxed out a little bit. that so much traffic has shifted both vancouver and the mexican ports are seeing, you know, they're beginning to have a little traffic struggle too, because so many people are trying to divert the traffic. with expanding the canal, that's one option. it won't come online for a long time but a lot of ship lines already have services going from asia up around and directly to the east coast going the other way. >> and florida allen, is another alternative. there are terminals on the west coast of florida that are receiving asian ships. >> that's right. and the gulf coast if they're the right size to squeeze

through the panama canal, the big honking ships you hear about, they have to go east or west coast. >> you're such a ship expert. what's the national flag of american presidential lines you said earlier today? >> it is singaporean actually. sorry. american president -- >> we got nothing, right when it comes to shipping lines in america. >> we have no international ship lines. what ship lines we have are reserved to domestic trades. think california to hawaii. we don't have any international ship lines. everybody priced us out of the market. >> if wastler didn't exist, you'd have to invent him. >> this will continue on cnbc.com. >> everything you ever wanted to know about ship flags. >> allen wastler back at headquarters. >> up next eric chemi has the perfect gift for women to give to men on valentine's day. it's investment advice. he'll explain why when we come back.

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opportunities aren't always obvious. sometimes they just drop in. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances. so kelly, we have our first wave of these regulatory 13f filings when the money managers in america disclose their long positions. green light capital, a whole slew of holdings but he has sold completely out of his stake in cigna. also cut his stake in aetna by

more than half and it looks like for right now trimmed his stake in apple by about half a million shares. also boosting his stake in sun edison by it looks like about 3 million shares and taking a new position in time warner. that's green light, some of the highlights. also want to point out that david tepper's appaloosa management is out with their 13f filings and a whole slew of sales and dissolutions. the highlights here, appaloosa and tepper have gotten out of the position in cvs, sold completely out of their alibaba position, citigroup position and facebook and hallburliburton positions. they have reduced their positions in priceline and american airlines. among the highlights facebook and alibaba, completely gotten out. dissolved citigroup and cvs groups and out of halliburton.

we're going to continue going through these but again we got this first wave today. we'll expect a lot more of these by around tuesday this same time kelly. back over to you guys. >> that starts us off. thank you. valentine's day, of course it's tomorrow and this year women might want to think about giving their male counterpart investment tips as a gift. eric chemi did some digging and it may turn out women may be superior investors. >> according to sigfig last year women outperformed men on average by 60 basis points in the stock market. that's a sizable chunk if you take it out year over year. one of the big factors is portfolio turnover. men are churning through their portfolio 14% to 9%. they have a 50% jump. they're trading a lot more. not really getting a return that is worth that trade. but what's interesting is that they have a more extreme set of

returns. so men have a slightly better chance than women of beating the market, but they're also more likely to simply lose money completely. so the women are better at making money maybe not beating the market but being more consistent about making money. >> on a risk adjusted basis they're doing better. >> but their confidence isn't the same. even though men lost to women, men think they will do better in 2015 than they did last year whereas women don't put as much confidence -- >> there's been behavioral research on this for while that shows women can be better managers in men in part because they're more humble. they don't feel like they're affecting the future as much and i would like to point out my wife has been a better investor for me for years. we were both making choices about investing in a select fidelity fund. she looked down the list in 1994 and saw this developing communications. that's a good name right? so three of my bedrooms in my house are because she picked developing -- and thin she makes

me buy the house in '98 more money than i want -- >> we should have her on the show. >> what are you doing on the panel, steve? >> she should be on the panel. >> spooim >> i'm sure you got her a lovely gift because of all this. >> i have some work to do on that score. >> jim, what about you? >> i know some portfolio managers who are women and who are extremely good. factually or empirically more of the portfolio managers that i know are men than women. obviously i'm just speaking in the professional -- >> you're saying because the numbers of women aren't as great it's skewed that they actually just look better than they are? >> i'm not saying the data is in any way wrong. i'm saying the world i look in which is professional portfolio managers, there are factually more men than women and the women tend to be really really good. >> oh. >> and we should just be very careful with that. these averages obscure i had yo idiosyncrasyies throughout. >> there are tepper and einhorn

but this is not -- >> there are incredibly aggressive female investors and there are very shy and more humble male investors. the financial adviser i use is very, very risk averse. >> we'll leave it there. breaking news on alibaba with dominic chu. >> we got a lot of news. this time from alibaba. alibaba group has said they have received correspondence from the u.s. securities and exchange commission, the s.e.c. asking for background facts and other information related to their interaction with one of their chinese regulators the saic and related matters. they say that they are cooperating fully with the s.e.c.'s request. they also point out here alibaba has no obligation to disclose the receipt of this s.e.c. correspondence. they have chosen to do so because they value being transparent with investors and they feel disclosure could help avoid any false rumors or speculation. so again they have received a letter from the s.e.c. asking

for certain background facts and information. this is regular correspondence here. it's about their relationship with one of their chinese regulators. they are cooperating with the request and they are doing this in the hopes of promoting transparency or the thought of transparency with their investors, kelly. back over to you. >> thank you. a huge issue hanging over alibaba lately. thank you so much. president obama wants tech firms to share more data with the government to battle cyber crime but some of silicon valley's largest companies appear a little skeptical. how will the president win them over. valerie jarrett joins us when we come right back.

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welcome back. president obama out in california today delivering remarks at the white house summit on cyber security and consumer protection. i'm joined in a first on cnbc by the senior adviser to president obama valerie jarrett along with intel president renee james. welcome to you both. thank you for being here. >> thank you kelly. it's a pleasure. >> and valerie, let me just begin with you here. a lot of different pieces to cover in this conversation about cyber security. what is the most significant move the white house has announced or accomplished in the summit today? >> well, i think just to take a step back keep in mind that

cyber security attacks are one of the gravest threats to our national security, and so what president obama wanted to do is to make sure that the federal government is doing everything we can through the defense department department homeland security, our intelligence communities, military galvanizing in a coordinated way an approach to fighting it. but we also know we can't do it without a partnership from the private sector. so renee and many of her colleagues in the private sector joined us today so we could figure out a collective approach to fighting cyber security. it is increasing each and every day. the attackers are becoming more sophisticated. the number of attacks are increasing exponentially. what are the steps we can take collectively to have a framework upon which we can work. and that's what the conversation was about today. >> renee, let me ask you because valerie used the word "partnership." we know tim cook delivered a fiery speech on privacy reflecting the anger a lot of execs have over the white

house's data collection and spying. do you feel as though the air has been cleared with this summit? are you confident you are now acting as partners getting the support you need from this white house? >> yeah thanks. i think that we are acting as partners. in fact this conversation today just demonstrates the incredible amount of support that we're getting and the open dialogue between the administration and the ceos here in the valley. we work collaboratively on the framework around security the basic framework for testing your company to see where you're at. i'm, you know ecstatic that many companies are agreeing to use the framework. that's going to improve the baseline for cyber security. intel has implemented and we actually put out a white paper so other companies can see what our journey was. and we're pushing it out through our supplier network. more importantly, that's just the beginning. there were a lot of

conversations today and comments from the president about even more collaboration. >> and renee, what does this mean for the average user for example, on intel request i want? what kind of additional security are you talking about and are you taking on more of the burden or is this about burden sharing? or is this something the feds ultimately have to do in their trafficking role? >> well, there's a couple of things. first of all, there's intel as a company and the security of our own company. that's what the framework is about. assessing where your company is and having a common language for making sure that all of the different areas of your company really understand what it takes to be secure. on the product side intel has spent billions of dollars in a decade actually improving our base products. one of the things we announced recently was a new biometric identity program called true key which should make it much easier

for password protection for consumers. it uses biometric options for consumers. simplify that process. >> that brings up the question as to what is the white house doing to make sure they have all the data whether it's a life lock or intel and includes biometric going forward to make sure that data is itself being protected? >> we need to make sure that the data is collected, but we also need to make sure that information is being shared so if there are early alerts there is a penetration or attack coming, that we're sharing that information so we can get out ahead of it and either avert the attack or try to limit the damage that is done by it and also recover as quickly as we can. and one of the conversations that renee and i just had with a group of ceos was the fact we're only as good as our weakest

link. it's interfacing with a company that isn't operating at that basic framework, then we're all vulnerable. that's why this is so important for it to be a a collaboration and step up our game for everybody. and we can't rest. this is something that's going to -- we're going to have to be individual lent about. believe me the people who are perpetuating, they can't relax. and neither can we. >> before we let you go the first one is on what the situation on the west coast ports affecting our commerce affecting the markets here even to some extent. is the white house going to get involved to make sure our commerce is moving smoothly if it needs to here? >> first of all, the white house and the president are very concerned about the situation. we are encouraging both parties. flying in we were able to see the ships out on the water who weren't able to come to shore. i've been hearing regularly from businesses being affected by

this slowdown and now stop of work. and so this is a very serious situation and we are monitoring it very closely and encouraging cooler heads to prevail because of the impact it's going to have not just in california but around the country. >> oh sure. and we're cognizant of that. meanwhile, obviously the keystone pipeline, another conduit here. this time for crude oil throughout the country. and as an export product, we heard from the senate leader john boehner today. you know, this bill to approve keystone is moving forward. where does the white house stand? i'm sorry, the house leader john boehner on this bill. where does the white house stand on this bill? what's it going to take? >> what the president has been saying is look. there's a process in place. after that process is complete a decision will be made. and that he is not supportive of congress taking action outside of that process. there's a very clear process. it's in the state department right now. let's see what conclusions they reach. >> all right. so it sounds like no further

movement on that front yet. understood. valerie jarrett, thanks for joining us this afternoon. we really appreciate it. with renee james there, the president of intel on an important day for cyber security for all of us. appreciate it. a big rally this week helping the s&p 500 close at a record high. what will next week bring? what you need to know when we come right back. stay with us.

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welcome back. time for quick final thoughts we the panel here. steve, you want to start us off? >> i think the economy is doing okay. definitely slowed down second and third quarters. but we're still doing 2.5% 3%. that's fine. we've got to shake out the earnings and who's a winner with the dollar loser with dollar winner with oil, loser for oil. >> it has to show up. >> you have time for a follow-up? i thought we were done. >> i like walmart and nordstrom earnings. and we look at the low enand high end. we haven't really seen a breakout. is next week the week we get it? >> and for me it's the fomc minutes that will come out on wednesday. >> i'll leave it right there. and wish you all a happy

valentine's day. thanks for joining us on this friday. >> i have to go. i have some shopping to do. >> you have been discovered. now we know the secret of your success as well. that does it for us on "closing bell." "fast money" begins right now. >> "fast money" starts right now. live from the nasdaq market site overlooking the market square. i'm sara eisen in for melissa lee. here's what's coming up on "fast." alibaba releasing into kor son dense. we'll break down the china trade. and netflix closing up 2% today after one analyst said the company would be making a $5 billion bet on content. but we'll start with today's record breaking market move. u.s. stock at all-time highs. the s&p 500 and