i think the financials, that's really just -- lit ramally tied to the tenure, if the ten year goes up, i think the financials are going to start to move up to the up side and hit new highs. if they don't, if we don't see that move. >> if they're down today like they are on turkey or contagion that would be the opportunity to buy -- are they not down enough? >> i don't think they're down enough i would like to see them get hit a little harder. >> what did you do today >> opportunity netflix, i think today was an opportunity with the resignation of their cfo he's not as important as reid hastings and their chief of design there i look at it, netflix -- financials are there at the point where i continue to add financials and biotech. >> i think there was an opportunity to be cautious i think there's an opportunity to take some profit. >> i mean, let's -- we're at all time highs again, why wouldn't you take a little bit off the table at this point. the one thing i would say about the financials, we're all worried about the banks and that congress takenen, i bet you, we're not going to hav

you look at this rally, if you back it up to pre-elevenlths we saw them ramally before the election. you started to make the move. so the question is growth. nom nam growth was a hinge. it was the lynchpin really to a lot of these outside of the d.c. initiatives to a lot of the stocks. we are starting to see cracks in that foundation. >> that's the entire foundation. >> in general. you see cracks, absolutely. >> i don't know what that means. >> i think the data will show you. >> the curve is telling us something in a lot of ways, it should be reflecting there the yield curve reflects positioning. it does, people that were overly enthusiastic of rates going higher. people went so offsides. >> hold on, sub1% for the first quarter. >> the first quarter gdp? >> despite that. >> what about nick surprises? >> it's eu, u.s. like this. >> does that mean we have cracks in whatever is cracking? >> i think money will dravtate over to the eu. i think it has. so the question is, can the mark ral le without the yields going higher? i don't think they can. >> well, i'm not sure how much higher they

and have you missed out on a ramally?god, darn, darn. >> relax, we have the group of stocks that can catch up to the market. we'll explain. the objection begins right now. >> let's get right to it. starting out for a big week for big tech, making multiples record highs. we will have to have both at high adding to the check rally here. stocks at record levels, do you stick with technology? let's go to the money. mike whark do you say? >> we are about to hear from carter about this, until we are about to, i would have to say, usually you stick with what's working. you would stick with growth and you would also stick with something people don't seem to be able to short, amazon certainly falls into that category. so you know, when i'm trying to look for a place that you do see top line growth, you do see consistent eps growth, this seems to be the sector where you see it. valuations are the things forme from a fundamental point of view. >> we have microsoft hitting a new high. >> i don't think microsoft valuation is out of ha

if it ramallys, we can spread out of it and sell higher strike calls. lock in what we have already spent usually and continue to play for the upside. on the owner other hand, if it declines back to 10 10, we can fund our upside call purchase by funding some puts. i don't think options are all that expensive right now. >> like you said, it's trading at a discount to historical. here's a company that is trading about a market multiple, it's been a lager. i'm looking at a company six years into a massive bull market that can't get out of its own way, so to me i don't like looking out to may and having that sort of chunky premium. if i was going to play this with the stock 2.5% down on the year, i'd look much shorter data and look do a spread and take advantage of so many things we are talking about. over the next few weeks, you are going to have decay. i know those are may "options action," i would look to february call spreads targeting on the upper end his level. >> so i want to go back to carter, if we are concerned about the trade such as dan is concer

you don't want to sell calls against it when umm own it at 19, because if it does happen to ramally back, this is a way you can self premium, get some leverage in the middle. so it has the benefits of doing a buy right without clipping the gain if the upside of the stock should rebound. >> we already identified why you would be willing to do that. there is that lockup. so presumably getting through that 27 trade. >> obviously, we are finding things to make money long or short. what does it say about this wanty or this prospects as investments the hopes and dreams of those involved with this kind of start? this is a pretty auspicious start. you come out of the game. you have one day wonder and you are down on the floor like this. meaning there is no one happy, unless you are an early investor. anyone's whose call space by definition is higher, which means the gap is as far as it can go. once you drop like that, that's where all the dead bodies are. it is finesse. >> you wouldn't even bother. >> i wouldn't bother. >> but the straight, some call this stock repair sort of thing. it's like, l

. >> announcer: chips have been on fire, and there's something to suggest that the ramally ain't overll tell you how to cash in. >>> plus pete is bringing the heat, serving up the pitch on one auto-related stock that's up 30% this year alone. you won't believe how high the pit boss sees it going that and more whether "fast money" returns when this bell rings... ...it starts a chain reaction... ...that's heard throughout the connected business world. at&t network security helps protect business, from the largest financial markets to the smallest transactions, by sensing cyber-attacks in near real time and automatically deploying countermeasures. keeping the world of business connected and protected. that's the power of and. and her new mobile wedding business.tte at first, getting paid was tough... until she got quickbooks. now she sends invoices, sees when they've been viewed and-ta-dah-paid twice as fast for free. visit quickbooks-dot-com. so they called the fire, yodepartment for us.clearly, my first truck was on the scene within five minutes. i am grateful we all made it out safely

in fact, a third, maybe a half of it if you want to be total fed spoke the rest the ramally we have seen in 20 thrown since the sequester, talk is over, has far more to do actually with actual business. the profitability of the companies. yes, let's snow cover in a little fed talk here t. low rates have allowed companies to refinance the same way you can refinance your mortgage if that brings you credit. it allows companies to buy stock in record numbers, which is leading to a developing stock shortage, housing shortage, as money portions of the market. but there simply aren't enough shares to go around without bidding up the merchandise. of course, on days like today, you say, cramer, what are you talking about? today was average versus disapeergment we had 19 straight up tuesdays. i have been working on how many shares will be taken out of the market. crunch. it is exextraordinary. lots of never seen it. this year, it's been a whole new set of circumstance pushing stocks up. first, we are doing some high use in this country. let's face it, you can't boy a house. more people are getting

it's all over this market ramally t. up more than 100 points, but there is a couple of stocks that are dropping. the markets, your money, your vote. double days here in ohio we will be back with more of the power lunch, halftime report happened after this. >> the "halftime" report" is the money market interviews. >> the great china real estate bubble has not happened yet. >> i turned negative on most assets in july. >> we will be in the doldrums of low growth environment, global savings and low interest rates. >> the most profitable hour of the trading day. >> it hasn't worked. >> weekdays at noon eastern. >> vice presidential nominee tim kaine karsts his vote in richmond, this morning. he is on his way presumably to watch the returns with hillary clinton, she is having her party on the west side of manhattan, welcome back. shares of best buy are falling today after ever core ground graded it to a cell. cyclical head winds could get tougher next year. dr. foley disagreed. >> completely disagreed. from the food traffic as

briggs and stratton is such a big player, why aren't they ramallying?art of it is because briggs and stratton gets only 10% of the sales from generators. the company is very far from pure play, however, they make the best generators. i think 10% number could grow as buying a backup generator becomes more mainstream. you have to remember millions of people are without power for days or weeks in the northeast. some people still don't have power. people are thinking to themselves, next time i'm going to have a generator. the idea of homeowners buying stand by generators as storm insurance. you know, it implies the same at briggs and stratton. i think that generator business is definitely big enough to move the needle in a post sandy environment where people realize the horrific storms are here to stay. now briggs and stratton reported a disappointing quarter on october 18th, that also hurt the cause pretty greatly. [ baby crying ] >> that was right before the storm. the company noted they had no storm activity in the next quarter. and then sandy happened.

production is going to stay below $10 bucks >> i have been a bear in crude you can start to see the xle ramally off here when you look at the iwm, it's up the s&p is up 3% if you are going to make you're year, survive this year as a fund, you won't chase fang to survive. >> the way i look at this, yes, we can over simplify, people are going back into true over growth a lot of the stills have a decent growth profile. when you think of what is not happening right now. interest rates have not gone to the moon. >> we haven't gotten off the grounds. >> i know, where did they go on a relative basis i would make arguments they went to the moon. by the end of november, early december, we were at 265 on the tenure, 135 on the yield curve what people are forgetting about the course of people saying the fed could push us into recession. think about the growth and cyclical sectors, i throw that out there, i don't think enough people are looking at that. >> a couple things, the things you continue to look at, steve mentioned iwm all time high today. we talked about russell 130 forever t. transports, the all

think about that ramally. think about that move. compare that with this current rally that everyone is so fretful about. suddenly, on november 23rd, 2012, where the inflexion began the nasdaq stood at 2,441. if we just want to use an apple comparison in clinical fashion. in 1999, in early 2000, the nasdaq advanced 500 points per month. whereas this time it's moved up about 200 points per month in a very similar time frame. by that tally, which think is a legitimate one, this market is nowhere as frothy. in the dot-com era were companies that had little to no earnings whatsoever or if profitable, they were selling at an astronomical 60, 70, 80, 90, even 100 times earnings. now the composite earnings is 17 times earnings, which is inexpensive historically, particularly against interest rates that don't give you much juice and leaders of stocks like google. that sells at 19 times earnings, cheaper than color clorox, cheaper than col guite and cisco, which -- colgate and cisco reported a great quarter last night. google didn't exist bac

eight tech deals, on average, that i have ondone very well popping 17% on the first day of trading, ramallyer 38% in the after market according to ipo renaissance capital. >> that hasn't happened in a very long time, people, it's not talked about. i'm talking about it. jc.com for example became public may 22nd. it opened a nice premium, first trade 21.75, rallying furiously ever since then all the the way 27. so arista is nothing out of the ordinary for this smaller, calmer, reasonably priced ipo market. arista's timing is not the only reason it moved up. you have to understand, this isn't some software or service stock or software service look-a-like, it's not an ecommerce company. it's a high quality network equipment play that makes switches, a major component of the internet physical backbone, switches used in data centers and the cloud, those are still two super fast growing marks. that's right, this is a real company that makes real things, yes, it is real earnings. not only that, even after its epic run after becoming public a week ago. they face a fairly reasonable valuation, sellin

market led by the financials a sign of health if you only remember one thing, remember that the banks ramallied. that's positive. i think it should carry us through the rest of the week when we probably start the guessing game about the recession, whatever, because powell is not omnipotent other members and seven have said they don't want any more cuts or whatever because that doesn't even tell us what they're saying, powell has a say and all he needed to do is say things get bad in the end our sober fed chief isn't taking anyone's bait he didn't belittle the president, he came out and did about what you'd expect him to do maybe powell should get an acting coach so he can learn to smile and in tone even periodically laugh, i mean, laugh, you know, but if you're waiting for him to do that don't hold your breath the federal reserve just gave us a soporific rate cut and 25 basis points slice a predictable two-bit haircut. you won't get something more from jay powell. but bore something good at fed chief. janet yellen was real boring and incredibly powell may just be even more boring than she was.

and an occasional ramallys. -- rallys.t's dampened us to form an organization. >> what you are saying is what rick santelli said a few moments ago, the attacks and stalling questions, what did i see, if richmond, virginia, they asked one tea party group 53 questions for a response. so this, in effect, keeps your donors away and defunds the tea party. santelli was right? >> it absolutely does. it absolutely does. you know what else, it keeps the tea party leaders tied up doing nonsense bureaucratic paper shuffling when they should be out running their organization. we don't have big steps, a cpa, or a team of lawyers. we have two, three, four, five people on a board of directors who have to do all the work. if they're working with the irs in answering what's on their facebook page and what last bach last book they read, they can't be out on our mission, when you have a powerful government, these things happen. >> any time a rule gets in effect, three years the irs did take the tea party groups and conservative groups out of

i think you saw republicans ramally around him. they were careful in isolating the people arnold his conversation with flynn which is one sentence. it's exactly helpful to him. if you think of the approach he has, fake media, fake media. comey says the bomb still story in the campaign is wrong. so now republicans will say, look, here's evidence of fake news. there was a moment. have you as to watch it, it was amazing, steve, it was jimmy stewart, a performance unlike things we rarely see, but there was a moment where he talked about last year, he said, listen, this is comey talking, he says, i felt like clinton were trying to align their campaign with loretta lynch, the attorney general at the time. trump will say, look, they did it, i did it. so short term the markets are reacting correctly. there is nothing new to point to impeachment. the impeachment, by the way, obstruction of justice will be assigned by krong congress, controlled by congress the threshold here is way up there. so it will be really, really hard to hit that and

until that happens, can the banks ramally? that's the question. no, they can't. until the ten-year moves higher, the yield starts to move highary little bit. these banks are in a little no man's land. what would i be doing? i think there is a down side risk. however, j.p. morgan, 80 bucks. guy would say, boo i the stock aggressively. it traded i think at $200. you boo i that stock aggressively. banc of america is -- >> so they're sort of an air pocket in your view, if that is the case, guy, what does that mean for the broader market if there is that downside rick to the financials. >> if the s&p had an opportunity to sell off everything we made yesterday, it should have given back today, theoretically. and it didn't t. s&p was down 7, 8 or 9 handles. it wasn't down that much. so it could have been disastrous on the heels of a good day yesterday. and it's not. the rough patch actually closed higher on the day, slightly higher on the day, all those are good sign, earn courageing science. i'll say it again, ibm 130 t. transport's now right there. i.t. at 160. the s&

of course, the president isn't a huge fan of the tea party movement that tried to, you know, ramally against -- rally against him during an election cycle. at the same time, there has to be an element that the president and people like me like to see the civic engagement, civic activism that is happening with the tea party with the occupied wall street. so he's got to be disgusted. i think he is when an agency like the irs starts going after people for democratic participation. i think he's not going to, again, try to distance himself from this. he already distanced from it. i think what we're going to see here is specific action being pickled, made that reenforced the -- >> mark, i'm giving you with way out, mark. that's what he has to do. announce some firings tonight. announce a few director of the irs. that's a way out. announce a special counsellor to oversee the whole operation. by the way, i think that missing name, i'm go back to my pal ayman javers, lois lerner was in charge of the tax exemt division. her name is littered throughout all the meetings and memoranda regarding t

ramally keeps rolling along. all those stories, much more coming up on "the kudlow report" beginning right now. now, before we get to obama care. we got to show you the markets, because it was a record day on wall street. kayla joins us with all the key details. goef. >> good evening, larry the dow closing at an all time high, if it feels like de ja vu, it is, a day with mixed economic data, the big catalyst hopes for more stimulus from the fed, a read on the economy will come tomorrow. the s&p 500 got in the game, hitting a new high today, it's been doing that nearly every day, it seems. finally the nasdaq nearing a 13-year high, larry the dow transports and russell 2,000 hits new high, we will do that to the market. back to you. >> there may be more of that easy money on the way, kayla, thanks, so much. now, obama care is taking center stage on capitol hill today the administrator of medicare and medicaid services testified before the house committee on ways an means. for that, we turn to political reporter and

. >> we have a good debate to set up because in terms of the ramally, jim says he's buying it, right? it's not buy it. it's either buy it or fade those are the two perspective imminent right now he says buy it bob pisani says the s&p above the 200 day. and he says 50 week highs are expanding. it's broadbased value and growth almost up equally. do you buy it or do you fade it? >> i mean, it all feels like a warm blanket when you're talking about it you know what, the fed is coming out next week and is the fed going to let this market continue to rally? that's what i question so, if i were trading, as a trader, which i'm not, i'm an aloe karat, but as a trader i would be fading this because i don't know if the fed is going to come out next week and say, hey, all clear, all clear, we're going to move on don't forget that paul volcker's book is in front of, apparently, jay powell's desk. they still worry about the '70s when inflation came down and then came right back up. i think with china reopening, oil's catching a bid i'm not clear the fed is going to say all clear if they don't say t

. >> i think the a & p needs to ramally. >> you like the monkey talk. >> you know what i did during the's the first thing i do when i wake up? >> i don't want to know. >> shower. >> no, everybody is a jerk. >> i did in the say anything. >> thank you, bk. from that world wide exchange rate, today they had a great interview on the squawk son the street, you should go back and listen to what he said. >> that will get you done. >> i'm mellissa lee, thank you so much for watching. see you back here .. >>> my mission is simple, to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. "mad money" starts now. >>> hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends. i'm just trying to make you some money. my job is not just to entertain you but to educate and teach you. so call me at 1-800-743-cnbc or tweet me @jimcramer. >> it's the anti-amazon rally! yep.

for garner, that could be where the ramally is at. we want to make that, don't we? we get fresh positive developments, they can go higher. if something positive happens, draw downs on concerns, she says ultimately, are you ready, ski daddy? we're going to 520, you know how much the natural gas companies would make if that happens? if it turns out garner is dead wrong, most of the people are wrong, she doesn't seem like commodities gets to the 260 area. that would be bad. she thinks that is a highly likely scenario, given there is a draw down. it kept the 4ri7d on the supply in the market. this guy can't make money here at these prices, they're not drilling t. charts isn't driven by carly garner who has been on a roll lately, suggests natural gas can be due for a significant move higher. this is contrary, people, even a major one as we head into the actual. you know something, i would not be surprised if you weren't dead right. dave in california. dave! >> boo-yah, jim, from california. how are you? >> real good, how about you, dave? >> caller: great. great. jim, las

. >> do you think, josh, the ramally as we know it sort of ranks in the balance based on what the president says? >> yeah. >> and how specific he gets tonight? >> i'm much bigger on thinking about how to look at a reaction than i am on making a prediction. so, scott, i'll tell you what the number one thing i'm hearing from people is what if he says everything the market wants him to say meaning the tax stuff is on track, the health care, they're going to be specific details coming soon, on and on and on with respect to mergers and repatriation as jon talks about the defense budget. what if he gives us everything we hope and think he's going to give us and market sells off anyway? to me that's the biggest risk because it will tell you psychology is changing. up until right now, keep in mind the stocks are actually trading in line with the president's day-to-day favorability rating which is probably not sustainable. but that's actually what's been going on since the inauguration. if that cycle breaks we might have a hiccup here. >> joe, is the market reaction right now ahead of the speech an

some shareholders betting on an even bigger ramally. >> another big reversal which gartman was referringk hit a 52-week low today at 1010 but it reversed very strongly and one of the trades we saw was a sale of the january 12 8 put spread 10,000 times. that's someone willing to buy a million shares of freeport as long as the stock is below 12 bucks and it was well below 12 bucks but it's rallied strongly since then. this is probably someone who sees at least 10% up side in freeport-mcmoran this coming january. >> big night full of news this hour. we'll your final check on google this hour when we come right back. stay tuned. here at td ameritrade, they work hard. wow, that was random. random? no it's all about understanding patterns like the mail guy at 3:12 every day or jerry, getting dumped every third tuesday. this happens every third tuesday. we have pattern recognition technology on any chart, plus over 300 customizable studies to help you anticipate potential price movement. there's no way to predict that. for all the confidence you need. td ameritrade. you got this. no student's e

after the huge ramally yesterday, it had every reason to sell off today. it's not. it's down .2% on the day. so i wouldn't stay away from caterpillar. >> it has been a performer. >> it has been. >> that's one of the reasons it didn't get crushed. >> one of the questions you asked earlier is how about something like the whole foods? it's right on the 52-week highs. these are the names people continue to go to. starbucks, yet 75% of your exposure is in the united states, in the asian markets, there are plenty of different areas where you can go and get performance to the upside. >> let's talk about another one, if the markets are going to hit and stay at new high, one group that will probably have to participate is the banks. they have been the second best performer year-to-date. can that continue? the strategist at kbw is live in new york city. it's great to have you on. >> sure you have been listening. can the financials do as well in the second half as the first? >> that will be quite a run. another 20 plus percent. life insurance is up 40% t. bottom line is, yes,

that took some wind out of the sails of the ramally on wall street.t's still gained -- it still closed up with a huge gain of 216 points. but that definitely took away some of the momentum late in the session. >> you hear 103 and you just got back from -- >> treating patients in western

. >> electronic stocks which had contributed to the ramally were sold by investors seeking to lock in profits. sony fell 5% in both toshiba and tokyo electrons over 4%. meanwhile, mitsubishi heavy industries rose 3% after it was reported that their aircraft had received the first overseas order for its new small passenger jet. that's all, back to you, chloe. >> thank you very much, kakhi. >>> still to come, price prices have plummeted in the oouts. are we live from a recovery? i'm robert shapiro. over a million people have discovered how easy it is to use legalzoom for important legal documents. so start your business, protect your family, launch your dreams. at legalzoom.com we put the law on your side. >>> welcome back to cnbc's "worldwide exchange." i'm julia boorstin. here are some of the top stories we're watching from around the world. sales of apartments in manhattan surged in the third quarter by as much as 69% from the previous quarter after buyers sat on the sidelines for the first half of the year. reports say the average price of an apartment fell about 10% from a year ago

>> i agree, the oil prices, we are seeing a relief ramally, oil is back above $50.bulls are liking it. this newly found downtrend is going to resume. right now kuwait came out today, expecting the second half cuts to contain you and the market lifted up a little bit. so mostly, there is a lot of reasons why this market will continue lower. as gina mentioned, the rig counts, i expect to see production pick up about 100,000 barrels per day, in each month going into the summer. that's going to add quite a bit to oil. we are already 400,000 barrels a day ahead of where we were in november. at.1 barrels right now. ultimately, by the end of the summer, we will take up about two-thirds of the cut that opec implemented, with this, a third of the year less. so i think fundament ally, we will see a lot of oil come back on. also, there is a lot of technicals in this market. the exxon has a tremendous down channel. we are touching the tip top of that down channel right now today as well as a 200 day moving average, ultimately as well, it's just above, it's prices come down, we

you can see wti ramally.in, we are very closely watching rainfall and shut down refineries. >> kyle, i know this is besides the point right now. but what preparations are being made, either by individuals? are people stocking up on gasoline in advance of this, for example? what are refineries doing? what are the plans now we are 24 to 48 hours away from the landfall >> like you said with this landfall, about 200 miles south of houston, my wife called me and said, there is not a bottle of water in the grocery stores in houston on the way here she announced they are shutting school on monday, there is definitely preparations made. because we have gone through katrina, rita, the last 15 years, we've seen devastating storms i don't want to sound like this is a non-event it is a potential storm. it's about 200 miles for houston, it's not nearly the issue for corpus corpus has a serious issue. >> final word. >> this is the first major tax for the trump administration as a natural disaster we have a newly installed

company in which case i don't think it's like the early 2000s where the idea was the market couldn't ramallye semiconductors did. but i think they're a little bit of a tell on whether investors want to bet on an up turn. >>> i want to bring you more details when it comes to guidance. ross stores is forecasting second quarter earnings to be in a range of 64 cents to 67 cents. the street has a consensus of 70 cents. that's weak as well as the full year earnings guidance. ross stores is looking for somewhere between $2.63 to $2.72 while consensus from analysts is for $2.73. so that also could be additional reasoning for the shares being under pressure after hours. kelly? >> courtney, thank you. we expect gap stores to report the results here momentarily, too. let's bring into the conversation chris johnson from j.k. investment group. he's been watching technical moves in the s&p. you say they might be sending a warning sign here, right, chris? >> kelly, there's all kinds of them right now. i think it's interesting today we saw the s&p 500 go to a low of 2025. where did it close? 2040.04. 2040 h

i'm not saying it is a false ramally, ju rally, just an upward melt.nd coming up so probably not going to get -- >> you had a funny line. you said if you shun auto chain retailers and media you're left with not much more than hotels and tech scott. >> in the consumer discretionary area. investors are saying i want to own the consumer but not in challenge it areas. >> it is amazing how many challenged areas there are and yet the market at record high. if you can't own auto and look at what happened with advance there. even the media stock struggling today. yeah, there are other places happy to kind of push you to the highs. >> it is all kind of floating to the top, to these big, big names and everybody is chasing them like mike was saying. i call it complacent but also an arrogant market. it is saying to me, you know, we had a terrorist act in manchester, many people died, especially teenls and women. the market said it can't happen here. that's what i felt the market said. you have existing home sales, kind of not come in well. they actually were expec

. >> if the do is up today, it will be the first two-day ramally since april 27th.s that success in this market? >> yeah, slip some cash on the barbie. i think we do have some helpful si signs here. home depot is doing well. i don't want to minimalize anything when i say that the largest dollar store is able to price a deal sfan tastically. i hate to bring up america because i know we're unimportant and we're really trading every min ut. >> sarcasm here, by the way. >> yes. but i think there are signs are where people want to invest. dollar general, last i looked, it is not euro general. you talked about it yesterday. i should point out this morning, bid the way, on that same topic, morgan also prices the secondary sale of stork. 63 million shares at 31.88. >> people want to buy american stocks. and they are not quite sure whether other stokes have come down enough. jp morgan trashes the semis today. if you have an american company, i know it's small, but i'm try k to give you a sense on what the growth guys are saying. >> i don't know what ultra salons does. >> you

we seem to be in a trump bump or a tax ramally akinesiology to 2013 amid the taper tantrum.e temporarily, they're struggling to find a more sustainable trading range we need to see a lot of this optimism supported by very clear gained momentum in the underlying economy and at this point there still is a lot of question marks as we heard from some fed officials more recently, yes, three rate hikes are on the table also this possibility of way less than three, one, maybe two are on the table so there are some question marks regarding the health of the underlying economy, what it means for fed proils and whether or not we can support these levels in the marketplace. >> go ahead. >> there was talk this morning, an analyst on. he said the real problem for the market is what happens with the fed in 2019. i'm not really concerned about that, partly because of what you just said, who ill the fed goes higher, there is a kind of pullback to not going higher at least that itself where the debate is. should you go higher also the fed has already said it's not really going that high, the

at seven that's the market trying to find a fair pricing level i think we're nearly there further ramallyported by better economic news, should be sold in our opinion. you also don't need to forecast in a recession too many economists are calling for recession. when they speak together, they're usually wrong. we're happy to look at the other side >> steve >> i think that when you are forecasting for a recession, you have that change in monetary policy and i think we've seen powell pause, and that's continued to change. if he continues to burn through 500 billion for the year, that's tightening that will be a headwind for the overall market as well >> that's what we have to watch every fed statement this time around every six week >> i think he has done a great job at making us watch that because no one is going to watch that no one has the ability to watch that i think that people will just start to look at the overall market, but risk-reward, i think you'll see maybe a flattening out at this point. >> thank you for coming in today. >> thank you >> braving the cold and it's great to have

a summer ramally on its way. >> keeping america growing.orporate taxes the middle class and more. plus quarterly results from retail giant macy's find out if terry lundgren has hit all stores? final hour of "squawk box" begins right now. >> i.they say madison square guard isn't crowd and as good as some other places. when the goal is scored, they play this. it's pretty cool. it is. now, macy's is out. i'm done talking about this. fine. fine. >> you want me to read it? >> i will talk about this and go to macy's. >> expectations are 59 cents a skair share. >> 60 cents is what they earned. same store sales are down, they're giving giants. you know ma the estimate is? >> no. >> 448. >> right there in the center there. >> gross margin tlapg.9%. i don't see the revenue numbers at this point. i can tell you. >> 6.28 billion. we will put it on the screen. >> does it say a little below 6.46. the stock right now is, you can't tell what it will do. up 66 cents. i got a 57.50 bid and a 58.20 after repurchase opt piezation shares raised and the company

that took some wind out of the sails of the ramally on wall street. it's still gained -- it still closed up with a huge gain of 216 points. but that definitely took away some of the momentum late in the session. >> you hear 103 and you just got back from -- >> treating patients in western africa. >> this wasn't much doubt. >> take a look at future this morning. you see red arrows. at this point, dow futures are down, but only by about 9 points. nasdaq off by 10 points. in some of the early trading in europe, again, some modest declines. the cac in france down by 0.4 had%. the dax and the ftse down by closer to 0.2%. >> let's get over to meg now who has been crisscrossing the country from dallas to washington and now in new york city. she's standing by outside bellevue hospital. good morning to you, me meg. >> good morning, andrew. now closer to home, the patient dr. craig spencer is 33. he was working and we know about the time line when he came back. he arrived here on the 17th having gone to europe. now, we know that he didn't have any symptoms. i w

as long as it's above that critical 1,000 area the summer ramally, or summer surprise rally i guess you it still has legs here. >> what about all the q though in the market. does that just feed into your thoughts about the market? >> we think it continues to feed in the last couple years t. few things we had the fed, on pullbacks, you head up a 5% correction. they had that big spike above twevent on the surface, we are encouraged by the s&p components. short interest, actually, a new high, close to new highs in the calendar year 2013. that's at 7%. s&p is 10%. the multiples are higher. they come n. that can be bullish. to me all the shorts keep continuing. >> ryan, inside the market, we seen deteriation in the bond like equities. is there more of that coming with you? >> we think there is. earlier this year we had those names leading. that's not usually what you see. you want to see the good assets leading. yes, you look at bonds, we have this big inflows. we know that, now the money shifts. there is a lot of room to go. >> ryan, on the way up, we talked it was always too high. no, no,

would see in terms of raise rising after the statements yesterday and with what we've seen in the ramally a half and the market overall. so i think for today, becky, the sort of intra-day volatility is going to continue. i think we may be a bit all over the place because of the fact we are going to have a lot of unwinding. that also being said, i think there are some funds we're feeling good we sold off because maybe they hadn't caught up to the s&p 500. i think what you saw yesterday afternoon was a bit of a short squeeze as many of these funds were still involved in the market. particularly in the energy sector that have done so well. >> it could be a fun ride for the rest of the day. >> it should be a fun -- yeah. >> thank you. we'll talk to you soon. >> always a pleasure. thanks. >>> hackers as you know by now won their battle with sony. the studio canceled the release of the controversial film "the interview." julia boorstin joins us with more. good morning, julia. >> good morning to you. not only pulling from theaters, it won't en be releasing it on dvd and hollywood is reeling. jud

we seen a ramallying credit in the new york times and the wall street journal.to 2.2. we will see what mr. bernanke says the next time around. maybe bernanke is saying the ball overrea acted. >> i don't think it was a plan. i think that what happened was that john and you know the new york times story that people thought it was a plane, there were two stories that went on. >> they use the same exact phrase, second guessing the fed. >> but i think that pilsner thinks this is nonsense. i'm sure he is talking to people at the fed. you need to make it clear. >> i don't think le told them you need to write this. >> the trouble is the language in the piece that says bernanke likely to say at the press conference. >> right. >> that suggests a conversation. it suggests essential. >> i'm not sure it was a conversation he had yesterday versus the day before. i think, anyway. >> my point all along. >> a little speculation. >> my point has been they're correcting something that doesn't need corrected. it's a straw man. i don't think the mark fears an imminent or early risin

rates we get more net interest margins, better nims for the financial sector and they should be a ramal rallying sector, but falling heavily. maybe they will enjoy the volatility we're getting out of this market. interesting to note telecoms and utilities, seen as slightly defensive sectors, they, too are under a lot of pressure. healthcare down 1.6% if you want to know who is on the orient express, people say look at the market structure we don't have many specialists in marketmakers anymore. back to you. >> we will continue to check in and see what's happening overseas and here. if you are watching this morning, look at the boards again. we've been all over the place. down as much as 600 points on the dow, just a moment down over 500. now down 486 we'll be in for a while riild ri morning. let's bring in more voices paul hickey joins us, jack caffrey, and andreasga garcia a also join us jack, what have you heard from customers and clients about this >> my clients have been talking about we have come so far so fast and what is fundamentally wrong? there is nothing fundamentally wrong. w

if we ramally 20%, i think rates will go up dramatically. meaning stocks rally.reak, 10% or 15% from her, i would be shocked if rates didn't go down. is the entire investment community going to sbi into that? i think they're going to reach for potential saving lines to see if maybe the fed will slow down. but should they slow down? i think that this is continually a case of, you know, backing into the garage instead of pulling into the garage. quite simply, they're trying to back in. trying to restock the banks like they can restock the economy. you need to pull in because backing in doesn't address where the money should be going. the structuralists of jobs, the journal had a big report on jobs and men in the workforce yesterday. one out of six men working age men are not employed. this is not going to get fixed by backing in. the final issue, you know, look at these charts of spanish and italian ten years. you notice how they're moving lower today? here's why. everybody was luking for that german supreme court issue regarding, you know, has the ecb done too muc