. >> bob pisani, weigh in on here. how much of the indecisive trade are we seeing today we are waiting ben bernanke on friday and does it tell us also, by the way, that the key driver is still now the u.s. as opposed to europe because we know they are talking on saturday, focus on the exclusive ben bernanke? >> i think that drogy is more important. a little bit of disappointment with mr. bernanke because i think he will wait important the non-farm payroll report 20 come out and comes out a week and a half now. friday after he speaks on the -- 7th. i think that's probably the decisive move about whether it is going to be any more qe3 that's going to -- the -- whether there will be qe3 happening. the ecb meeting is september 6. i think they are going to lay out the groundwork at that meeting for the -- more detail for the procedures on how they are going to provide a -- to spain and italy and also indicate they might be doing some bond buying in the secondary market for the ecb. i think we are bogey to get more in the ne

. >> bob pisani, characterize the week for us. >> markets cannot decide on if the central bangers are to be convincing enough to move the market. i hearing aid to say it that mario draghi is more important than ben bernanke. >> can you make a call on how to allocate capital with all the unknowns out there? >> we basically have tiaken a little out of cash. president -- >> you took out of cash? >> yeah, put more to work, a little into european equities believe it or not, they've been beaten down so far. we've hadded a touch more back there. let me just say one other thing. i hope michelle obama is watching because she would skill for your arms today, maria. >> let me ask you about the fiscal cliff. >> we're going everywhere today aren't. >> we thank you very much, this is an issue you've been writing about in terms of the second half challenges. talk to us about that. >> we believe the economy is slowing in the u.s. the numbers you're going to see for europe. germany we think is slipping into recession. we think the mighty juggernaut of germany is sinking. we think the financial stocks

we have steve with us now, and bob pisani is going to join us. aaron gibbs is coming along.here is a bubble of cash. explain the fair you that owe see happening. >> i think a lot of investors are looking to identify bubbles, and we think we identified one. catch and corporate balance sheets have grown. it's a 50% increase liveen by unsurgeon tily corporations. they have cut that cap back. >> so we have been talking about this for so long, so much cash on the balance sheet, nobody is doing anything with it, you're not the first person, when? >> we have retail sales today were good, the employment numbers are stabilizing, housing is improving, we saw home depot today. i think rates are down also for the last couple years. so if you have catch on your false sheet. i think the catalyst will be a spending fire that occurs as you see a pick up, share buy backs, you're starting to see that now -- >> but why now? >> because investor sentiment, markets up 12% year to date. after of the return has been the last month. i think corporate finance departments are getting nervous. . >> we'

and also with us is bob pisani. so tyler, you're obviously on the side of the machine, right? >> yes, definitely. >> how do we assign the blame -- who gets the blame for this run away computer that just let these trades go on for so long on wednesday morning? >> i think that's part of the issue is that we act surprised this happens and we look for it to be a blame game. we have to recognize that these systems in electronic trading is part of our world. high frequency trading is part of the industry now and we need to start looking at failures as something that's going to happen. we don't have decades to test them. failures are part of our world. we nook to look at system risk as being on par with market risk and credit risk and putting in the same protections that we put in for other kinds of risks. >> it seems, bob, that we have had an increase in these losses. it's not business as usual. what's happened recently that's different than just a few years ago. is it just faster, are markets too fast? >> i think the systems are just really complicated. there are many more systems

bob pisani is on the floor talking to somebody. >> so, we open.nt thing is, 16.6 million shares at $14. the price range so far, 14 to $14.20. two things that are important to note about this sport. we're now hitting 14 million shares changing hands. why is that important? because 16.6 million is what was sold to the public. essentially, the the entire amount sold to the public has turned over in the first half hour of trading. number two, this is a classic syndicate bid. what's that? it means the the book runner, jefferies, credit swuisse, some of the others are supporting at 14. i understand there was a 2.5 million share bid at 14. right now, we don't know what will happen. but obviously, it's being supported right now. what do you get? an iconic brand. arguably, the most popular sports business in the world. a valuable sports transmission rights. what's the downside? i think david pointed out the correct downside. this is a deleveraging story and investors have not taken kindly to that. the other biggest problem is the sheer weight of sports his

. >> we do want to bring in bob pisani who is live on the knight trading floor.e expect to hear at some point from tom joyce later on. >> just saw him a few moments ago. anticipate he'll be out shortly. he's on crutches. he had knee surgery literally the day before this happened so you can imagine it's been a very tough week for him. talked to a number of traders on the floor, beautiful trading floor behind me here in jersey city, new jersey. tremendous amount of relief. david very accurately depicted the concern here on friday was that there was a probability, a fairly good probability this firm would be broken up and sold for its parts the most valuable of which was that market making operation. that's not going to happen. on the other hand, they got a slew of new investors that now own 75% of the company. >> bob, i think also the question is of the customers that started routing trades away from knight is this enough to let them get the software glitch and believe knight has it under control. >> what impressed me on friday afternoon when we came on and reporte

i want to ask you, bob pisani asked is this possibly the most hated rally in history, the s&p 500 up 30% year-to-date and yet there's so much pessimism out there and people nay saying this rally. do you agree? >> i do agree. we have had a lot of pessimism. you ask the average investor, they would say flat, up a little bit, down a little bit. few investors are truly participating, volumes tepid. what you said on the onset of the show is right. the domestic market is still getting better and stocks are headed higher. >> is it because people have not participated and will get in too late and do we still have substantial gains ahead of us and make it an unbelievable good year if we could head higher this year. >> i do think we're headed higher. i don't believe there are unbelievable gains going into an election year and fiscal cliff. the average investor has been hiding out in bonds and it will not last forever and they should look at equities. >> one of the themes here is foreign capital will move to the united states as the rest of the world moves through their problems. are you seeing

a change in the wind, though, bob pisani. the s&p broke the 1400 mark. bounced back. >> a trouble going over it. there's low volume and i think people are still waiting to see what's going on in europe and you can see on days like today, we get the big global growth names weaker. we don't get a lot of energy in the material names, for example. the energy names. some of the other big sectors like industrials there. health care's a lot of confusion today about paul ryan's plan for medicare versus president obama's affordable care act and which one is better for the markets overall. just a couple of quick observations. look at the vix. normally the vix is up but with're sitting near five-year lows on the vix. what it tells you is the options guys don't think that the drop is a major problem for the market. this is unusual to see the vix down with the markets down on the same day. >> we were down about 90 points a few minutes ago and came back about 25 points off the lows. waiting to see what representative ryan talks about and whether he can soften his lang

bob pisani joins us now with your september preview, bob?important thing is tell me what will happen with europe and the nonfarm payroll numbers in august and i'll tell you what dw will happen with the stock market. the first big event september 6th is theique, michelle, and the key point is the staff there is working out details of a bond-buying program, they want to use that in conjunction with the eu bailout fund but i think it will be unhike i had to be ready at the meeting. i think there might be d disappointment. september 7th, will set the tone for what the fomc does at their september 12th meeting on the same day, of course, as some of other things that are happening in europe, and that's going to be the big thing for the federal reserve. september 12th the german court ruling on the bailout fund. most people think it's not a major problem, that they're going to support it. if they don't, if they declare it unconstitutional, that means the whole bailout will be on the ecb, and that will be a big issue. a minor point, but i think it c

bob pisani had something to say about that yesterday.ng in the right direction. >> crude talking here? >> yeah. >> tipco. cloud play. >> cloud plays have been very hot. golden called -- overvalued stocks. salesforce.com was soaring yesterday. >> ubs trims estimates on marvel. >> this is pc related. again, i'm trying to find pockets of tech you shouldn't participate in. this is not so good. >> getting some initiations of kayak. >> i'd just say be careful. google has decided they want to own travel. you don't go up against google. >> mark west energy. >> enough with the secondaries. they're burying us alive! there's too much supply. >> demand's going -- >> they've been bsh first trade's a bad one. this one, too. down already. >> for more on those stocks, sots.cnbc.com. coming up tonight we have? >> saks. i think that's really important. this is one where they've suspended the same-store sales as you mentioned. this guy takes old wells in the gulf and reinvigorates them. it's been a terrific business model. a lot of oil money. >> a couple m

. >>> bob pisani has been calling this the most hated stock rally in years. raymond james jeff sod says the s&p is posed to go on a run to 1500. >> 1500 on the s&p. and, bill, right now we're 1417. bob and jeff join us now along with brian belski and bob pisani. jeff, you see more upside. what drives it? >> i think everybody's profoundly underinvested. i can't find any accounts in europe that are 15% weighted when their bogey is 44%. endowment funds in this country are underweighted in u.s. equity. earnings continue to come in better than most expect. and i just think while we may pause here at the april highs and try and sell back it usually takes two or three times before you get through a previous resistance level. >> isn't there a litany of things you could be putting on the other side of the ledger? number one, economic issues in the u.s. economic issues in europe. a global slowdown. you have volume that is deadly every day. what do you feel about those things? >> another brick in the wall there. >> joe grando from years gone by wrote a book about profit

bob pisani is live at the new york stock exchange with more on that., you're the lucky guy looking at this researching it. what have you found? >> you don't want to look at me. you want to look at michele. what if you could trade diamonds in an etf? you would need to make diamond pricing a lot more transparent. one man is leading the charge to do exactly that. >> a lot of people that know stuff don't want to tell the truth. i get out there and blow it all out. >> reporter: in the secretive world of international diamond dealers, martin rappaport is a rap star. he inl vited our cameras to his penthouse for a party at a diamond convention in north america attracting buyers and sellers from around the world. >> real estate is location, location, location. dimes are connections, connections, connections. >> reporter: he isn't a dealer. he runs the price list which is updated weekly. the industry's go-to list for finding out what a diamond is really worth. >> would what you're looking at is a grid of different sizes of diamonds and you've got the colors goi

bob pisani joins with us the highlights. once it happened there was no way for investors to win here. >> a matter of how much they are going to lose at this point. stock is down. good news is tom didn't keep the firm together but paid a heavy price. new investors on 7 a% of the company. mr. joyce said he was launching an internal investigation to determine what happened and why it took so long to shut that errant trading program down. i asked mr. joyce if he would support new rules that would limit of this sort. >> i will support additional rules once we have the data. we will have a lot more data once our investigation is comple complete. >> mr. joyce was very vocal in his criticism ofs in dakota's handling of the facebook ipo at that time and now faced his own embarrassment. but he maintains there is a difference between knight's snafu and facebook debacle. >> we screwed up last wednesday. knight capital group screwed up last wednesday. and knight capital group paid the price. nasdaq screwed up on that friday and in the in

bob pisani has more but first to steve liesman. okay, steve. when the fed really matters. >> yeah. an interesting comment and maybe more interesting reaction. a lot of what he's been said in the letter he said in testimony. he said elsewhere. but it's a bit like that one sentence that stands alone that there's scope for further action by the federal reserve to ease financial conditions and help the recovery. he said the benefits of further action in a separate sentence is ambulanced against cost and not as definitive perhaps as the market is taking. these are all in response to a request of representative issa. bernanke adding it's not a panacea and urging lawmakers to take actions on the deficit to support the economy. he also added operation twist is working through the financial system. and then also defending the way the federal reserve makes policy as economic forecast which is another question that issa made. now the ecb also may be helping things along. more comments leaking out about how the european central bank could potentially buy bonds. a reuters story quoting a centra

check out bob pisani's latest documentary "the diamond rush." premieres tonight at 9:00 p.m.tern time. let's trade this. can't really trade diamonds. they're not a commodity like gold in a standard size. what do you do, mr. new world? >> i think for the very first time i said last week the sleeping giant kind of awakened itself again. that's silver and gold. you had this technical breakout above the 200-day moving average. investors frustrated with the performance of gold and silver over the last six months, they stepped back in again. what i like about it is that it continues to hold the upper trajectory it's had on this technical breakout. although i think there is credibility to the fact that some of the consumption is waning in particular from india, i think when you look globally there is this desire to own gold and silver once again in that paper asset form. >> thank you, seema. thank you, guys. >>> on the way, the final week of summer. is it the bull's last hurrah? we're going to have some answers. >>> as the markets get ready for ben bernanke's key jackson hole speech

bob pisani is on the floor. now studying some notes. >> i'm trying to figure out what the heck happened on retail sales. i've been calling all morning. not only were they wrong, they were wrong across the board and they were wrong by statistically large numbers. kelly, you said nobody missed. i see two companies i think missed out of 20 that reported. it's like a 90% beat. that is astonishing. normally you get 60% beat. you get usually 12 to it, 12 beat, eight either equal or don't. here there was only two that didn't. across the board the numbers were strong. 5.4% gain overall for the 20 retailers who report. the estimates were about 4.2%. i used retail metrics. that's 120 basis point difference. that's very strange to get off that much. right across the board. everything beat. the off price stores, tjx was strong. looks like they're continuing to take market share from jc penney. general merchandisers, target and costco, they were terrific. apparel stores were great. you mentioned gap. buckle was strong up 4.5

with us today is steven gall ger, we have cnbc contributor from destination wealth management, and bob pisani'll see if it's going to make a difference in your portfolios, bob, most people expect some kind of fall in the market since september, october, pisani say it's all the time. they said there would be some kind of correction. you say no 20% drop and it's because of bernanke. that's right, we talked about it earlier. they came out with a drop call. i said i don't think that will happen. it could drop 10%, perhaps, if you look at the each today, he flat out said that the wealth effect is occurring. >> i agree, i think what we heard from the fed they will continue to flushing the market. keep mod and float in the market. at lot of other bad news, and the fed is there oring a safety net for the market. >> what if the job's number is better than expected. housing market seems to be repairing, doesn't that take the fed off of the table? >> yes, but it's a win win. the economy is so good -- the market is going to soar on that fact. >> 4.7% isn't that much better. >> you don't think it's not ba

. >> bob pisani is on the floor, finally done flirting with the u.s.team. >> come on, they're just lovely and they're big unlike the gymnastic girls yesterday, gabby is five feet tall, and these girls are six feet tall. enough about that, i looked at the economic numbers this morning, i was surprised cp sierks i is so tame. i think we should see inflation and housing and we're not. i guess people are buying foreclosed units for rentals an i guess that's good news on a certain level. did you see china and hong kong down another 1% overnight. no talk of stimulus. if you don't think k talk of stimulus vote move the markets, you're not paying attention. did you see what happened in india? they're up overnight? why? great economic news? no, they had cpi number that's came in very tame, that is their cover to engage in stimulus. so the market moved up on hopes of stimtlaus india moved down, talk moves the markets like that. finally i want to talk about two examples of weakness europe. deere and abercrombie. sales growth was 14%? wait a minute, that was half

we have bob pisani and michael jones, it's the rally with no respect. >> if you're a stock guy, that's kind of what you want to see. traders hate the market, short interest is very high, the public doesn't even believe there is a stock rally, and yet we're moving up. things have been calmer since europe and we all know that, draghi painted himself in a corner and he laid out a road map. there's a lot of expectations for the meeting in september. so under that circumstance, you can see why there is a move up in the market here. >> it's certainly something that the technicians will say, and r ralph is one of the people who said it. so tell me, do you want to buy into the market or sell it? >> we would be cautious to put a lot of capital to new work here. s&p around 14 or 1405, august is typically a weaker month. we look the stock market, it's nicely valued here, but we're not going to put a lot of new money to work here at these levels, we'd like to see a pull back. >> it is all about putting a floor under the market. they think the fed will act and they certainly believe there is more c

says here they were hoping for gains, but not all of bob pisani's wishes could not stop it. >> we're waiting for them to come down here, the crowd is even bigger than for our friend this morning that was on "twilight." maybe we can grab them, they say they're not doing interviews. a very mixed day on the markets overall. we have the dow industrials up two points. some of them ended on the negative side, but home depot had an excellent report. housing had a pretty good day overall, the home builders, the itb, you can buy them all from the exchange traded fund. that is sitting near a four-year high. michael kors knocked the cover off, stats were tremendous, they're taking market share away from coach and other high end retailers. most of them were up tractionaltractiona fractionally. knight had a pretty good day and yesterday the investors had the right to convert them into stocks, 100 profit, they bought at $1.50. and they closed at about $3. >> good luck, buddy. >>> all right, the paul ryan pick and his budget plan receiving a scathing review from a former top money man in the reagan

the sidelines and not trusting the rally and pushed us to the levels that we're at, and i think bob pisani framed it nice when he said this one. >> steve: one of the most hated rallies in history. it's like great, stocks are rallying, and that might signal the top. >> john mccain paulson, let me kick this off, should we. >> brian: will happy about this rally? not a lot of participation in this market. >> i think you're right. i think the real key here is we're climbing the wall of worry and no one thinks we can. we're climbing despite the fact that the fed is not doing anything. i think that when we see vol yum maria is when we'll be in clear new highs for this recovery and people think the water is safe and that's when it gets dangerous again. i think the underlying catalyst here is that the economy is picking up. i think recent data on chain stores and the surprising jump in consumer confidence, on claim numbers, on payroll employment, i think we're seeing evidence of economic momemtum in the united states improving, and with 14 times earnings, and a 1.5% treasury, that could stimulate a

bob pisani. gary kaminsky talking chesapeake.s. >> we haven't spoken chesapeake in quite some time. i see the stock up about 10%. looks to be a short squeeze. i'm kind of looking for the release, listen to the call. read through the transcript here on the call and this is what surprises me. why are people surprised that mcclendon, now that he's -- by the way it was never hedging, it was trading. i love how they call these hedging programs, they were essentially taking positions. now that they are net long the commodity nat gas he is bullish on nat gas i mean he's that news. is that a surprise? of course it's not news. he is making a bet that the nat gas price commodity price will continue higher. the fact they're going to do asset sales a good thing. remember with asset sales as we pointed out several months ago. asset sales are great when you're delevering a levered balance sheet assuming you're going to get the price. little caution here if you're making the assumption that mcclendon knows anything more specifically about the c

bob pisani said this is the least loved rally, but they will take it. >>> we have peter sorentino and courtney reagan with us. what's driving this rally to continue and continue even though no fundamental changes are so cured. >> it's the draghi rally. it's no coincidence that the day he spoke and the day he said he would come to action that the markets took off. the spanish index is up 25% since that day. too he it's solely draghi. >> will it sustain into next week? >> it will until the fed meeting or jackson-hull. but with us at the upper end of the trading range, what we will see in the global economy. >> peter sorentino what do you make of it? >> we had such a sell off that most institutional investors have been under owned and selling in the retail space. any relenting at all and the market would just rebound on it's own natural course. the low volume, it's just sort of been a gradual flow of equity and money coming back into the marketplace. nothing really fundamentally based, people just don't hate them as bad as at the end of the first courter. >> courtney, i know it's been a

index close to the lows for the session, but if you look at the volatility curve, this is something bob pisanin highlighting because of the fear factor. >>> so to talk about that, chris, what are people so afraid of? >> it's the summer months, it's all about europe, but it was a potentially global recession. the fiscal situation in the united states and a pretty big political debate. you put all of that into the equati equation, and people expecting bad incomes. >> let's not forget the fed, right? >> right. >> as you have been pointing out, bob, the vix today, the cash vix, is very low, as you move out -- >> yeah, and i don't give trading advice to people, but we have volume at four year lows, value ti ti at fei year lows, caps at four year highs, going long is kind of a no brainer here, right? >> absolutely. i don't know if we're all going to agree about the right volatility index, but if you look at five year lows, and what's happening in the ten-year treasury yields, the small great rotation is on. >> we say that, but how do you do that? do you buy -- do you invest in etfs? >> yeah, you hav

bob pisani had a front row seat today. >> mr.ballard said it was not full on that they would initiate qe 3. futures drops, and we have not recovered. we've had no leadership, no movements in the markets. your materials, energy, technology, industrials down again today. it has not moved in the last several days. on top of that, the old group, the dividend payers, have had a terrible month, utilities now down 1% today. one of the biggest drops they have had in months. and then you go a little further than that, maria, and you look at the transports, they never participated in the big rally or got close to new highs. we need mu leadership out of the european union and the fed. i just want to bring this up, a little pop in the middle of the day. we'll have a press conference on september 6. john fortt thinks it's a kindle, but it's at an airport hanger. >> thanks, bob. keep it here, we have more headed your way on this jam packed edition of "closing bell." >>> the german connection. sap's coceo joins us for a assessment of what's really going on with the economy. and telemundo anchor will

. >> bob pisani, what's your take on the markets and the speech? >> the markets had risen earlier on expectations of bond buying coming in europe. it was a little premature i thought, and then bernanke said it was alive and well. once traders red the speech in detail, it was clearly there. take a look because the dollar dropped to really a four month low and that is usually a big help to commodities and stocks. gold stocks, free port, alcoa, and right across the board, one, two, three, four percent. big volume on certain exchange traded funds. commodities, four month highs here, and those stocks and etfs move to the up side. put back that short s&p fund, the important thing is people have been trying to short the s&p this week, volume very high in these short etfs out there. volume was again high, bottom line is it was high because people were getting out as the market moved against people trying to short. it wasn't a bad month at all. the s&p 500 up 1.25%. there is the transports diverging from that. bill and michelle back to you. >> thank you, bo

. >> and michelle, bob pisani is saying all data about 90% are expecting a rex in september or october. maybe it's a contraryiian. >> oil has gone down because the impact it's having on energy supply will be neglible. >> yes, this morning it was at like 12%. i think hurricane isaac wondered past or sidestepped some of the energy infrastructure that a lot of people were concerned about, so that is what you've got in terms of reactions. >> by the way, one quick note, i'm being told it's just being downgraded, so that's good news there. >> larry, tell me about you encouraging people to get into stocks. >> it comes down to what's priced in and what's not. there's a lot of good news priced in and a lot of complacency. in europe, we have the opposite. everybody is worried and as a result you see dividend yield that's are higher. you see it's flat for 52 weeks. the s&p up for 52 weeks, and that's a significant difference. the companies have good balance sheets, they're going to get rewarded for taking that risk. >> steve, i'm glad we worked out your audio difficulties here, where would you pu

we have christian beats, and bob pisani, i heard you several times saying 90% of the guys say a sell is coming. christian, when everybody says something, usually everybody is wrong. >> exactly the opposite happens. but we will not see a sell off. i think the fundamentals are pretty good. the volumes have been light and we stayed around this 1400 level. so i don't think we will see a correction at all. we may see a couple buying opportunities. >> did i misread, you were sitting there nodding your head slightly as we were talking about the possibility of the 10% correction. >> you could see a drift downwards from here. you look at the work we're doing, and the fundamentals are vastly improved. we think you have a fully valued market in the united states. so if we were to be down a point or two, two, three, four, five, between now and the end of the year, i think that would be a reasonable expectation. >> we're sitting near multiyear highs for some of the major averages. >> yes, but we're on much better valuations than the prime hault year highs. the ratings at that point were more like

bob pisani, your expectations have been raised today with mario draghi dropping out of the jackson holethey think he has something up he has sleeve, right? >> i think he will be very restrained. do you know how many traders i talk to that think there will be a 10% direction? like 90% of the trade eres i talk to. . a lot of these guys will be out of a job at the end of the year. there's two things working out there. china may have serious problems out there. there is a draghi bernanke put out there. you have to fee a way to factor it. >> let me ask erin about that, the expectations have gone up would you place many bets on what ecb request come up with? >> not so far, we have seen a lot of the cbs spreads go down because of positive comments. >> not what they've done? >> exactly. i think they keep the markets so far. and we're still looking for the very risk adversity -- >> one of your fears is higher smod ti prices. in europe and asia now, can you still expect that with commodity prices going down? >> yes, the u.s. drought, looking at the corn prices -- >> and it's a supply problem, not

we have joe quinlin and bob pisani.u want to be putting new money to work here or are you waiting it out? >> i'm still worried at europe in particular. the numbers in china are getting softer and softer. here in the united states i feel a little better. >> what are you watching right now? >> i think cyclicals have outperformed. in my view, that is a head fake. europe is clearly in a recession. china is trying to engineer a landing, and i would be careful chasing the rally that we have seen because the fed might ease once again. it won't have that big of a marginal impact on economic growth. >> does that dictate your investing? >> it's hard to ignore it for a lot of our clients who are hedge funds, it has to be part of the occasion. by the same stoken, if you're a longer term investor, you reached a national rimt of you can expect them to do for you. >> we have been getting mixed signals today if the fed will east or not in here. >> i think the problem the market has right now is it's gone as far as it possibly can go. w

bob pisani, you were pointing out a healthy sign of rotation going on today. >> yeah, it's a little strange. not only weak exports in china, but the bank loan demands at a ten month low over there, you have weak exports and the reason they're not reacting in a negative way, and this is very negative news, and they're expecting the chinese authorities to do something. they're expecting more reserve rate requirement cuts. infrastructure, spending, just like they're expecting the ecb to do something. >> bob, i was going to send you an e-mail, but i will take advantage of talking to you live. ed hyman wrote a piece saying he is skeptical because there is no volume behind it. what do you make of that? >> there has been no volume behind anything for the last year and a half. this has been the best week for risk on for cyclical stocks for awhile. the more defensive names have taken a backstage. now that mr. draghi has gotten a little more aggressive in how we'll do bond buying. a lot will depend on what's going on in europe. there's no d that central bank interventions helps prop up the markets gl

also bob pisani.rlier i heard you say that traders said we would be higher if not for apple. 2u>> apple is just huge today. we're north of 30 million shares, so hitting a new high yesterday, i think people were taking some profits, and i think it's part of the reason the market sold off earlier in the day. at apple moves down the rest of the market started moving down. i think people are just taking some profits. >> are we just tired? it's been a pretty good run for the last several weeks. >> that's right, as you mentioned, we established a new intraday high, and relatively close to the losing high, so i think some investors said we're up six weeks in a row. let's attempt some profits right now and bust open this rusty door a little later. >> obviously you don't want to do that, but we have been going higher even as the skepticism rose. >> right, i think you can make an argument on either side. you can make an argument that we're going higher or lower. the big concern for me is uncertainty and i think

bob pisani has the latest. want to give you some of the headlines what's happening. mr. joyce was asked what exactly was the cause of the problem yesterday. mr. joyce said it was a software bug except it happened to be a very large software bug. he did confirm what we had been talking about and i had been talking about yesterday, the problem was interacting with the nyse's new retail liquidity program that started yesterday. the next thing. why did it take so long to fix the problem and shut the program down? mr. joyce said we don't think we acted in a slow face. with all respect to mr. joyce, i think there are a lot of people down here who would disagree. what about the effect on the market? he said we did not harm individual vovrs. we got them out of the way. he did acknowledge confidence took a hit in the market. what do we need to do at this point? we need to do a better job on our testing environment. i think the entire industry needs to do a better job. how about the comment they are searching for more ca

. >>> power rundown time, joining us to talk about the day, bob pisani and jane wells.l media and who is responsible. a rumor on twitter may have moved the oil market yesterday and now the nypd wants to know who is tweeting about another colorado-style theater shooting. i guess the question is how do you regulate or can you regulate social media. miss jane, what do you think? >> i think you better be careful with this. i like toaire err on the side e f free flow of information. twitter shut down this guy. and if the judge agrees with the police, they'll issue a subpoena. >> if you're spreading false information to enrich yourself on trading stocks, that's illegal. you can get arrested about that. i don't know about shutting down the account but that person certainly should be held liable. . >> next up, president obama slam s presidential candidate's tax plan calling it romneyhood, taking money from one class and gives it to the rich. another form of class warfare. >> i thought that was a funny line, made me laugh. then call him the sheriff of nottingham or nothing ham,

bob pisani is also joining us.ou say long equities here and new highs come october, what will drive it? >> i think we will see a rotation. we have to see a rotation. the market is very extended, but it's extended in a few areas and a few areas alone. a lot of the big cap dividend player, you see a lot of money rush in there. now those companies and those stocks are pulling back and the market needs to determine, okay, will we see money throw into new areas. this week i think we saw the bulls show their hand moving into the beaten up commodities. you have to be selective here and you can't just run out and buy everything. i think it's a rotation market where you can look at materials, energy, beating up things like copper, things like alcoa, things that have been in the trash for good opportunities going forward. that's what pushes us to new highs by year end. >> bob, what are you hearing, is this market poised to move higher? >> it will depend on what you do with the two central bankers next week. the title of mr.

bob pisani spoke with the ceo today and at the nyse. bob? >> thank you. tom joyce kept the business today. new investors own almost 75% of the company. he launched an internal investigation to determine exactly what happened and why it took so long to shut that errant program down. i asked him if he might implement new rules to limit the damage of this sort. >> i support additional rules if we have the data around which to craft the rules and we will have the data once the investigation is complete. >> now, there are some-wide circuit breakers to hold trading in large price swings. one idea is to look at circuit breakers to slow down or halt trading in unusually large spikes in volume, not just in price and what we saw with the knight trading issue so if knight does 100,000 -- 1,000 trades a second and then suddenly 25,000 trades a second, tyler, the system would pause or halt. one other issue discussed is exactly where mr. joyce's future lies. he is safe at the time being and the chairman. and there is some discussion that with new investors in, maybe a

and also bob pisani. phil, should mary shapiro have cut her vacation short and gone to washington to deal with this? >> it's comb to this. the fcc in times of crisis needs to show leadership. leadership in my mind is one part confidence, one part poise. they don't have a lot of confidence now in the wake of madoff. i don't think she needed to come home because of her staff to step forward, but putting someone out there would have been a smart thing to do. >> how significant did they see this event? what do you think? are they looking at this that it's not as serious as others? they were on the brink of bankruptcy according to some and now they have a lifeline. do they see it differently than the rest of wall street? >> i hope not. i hope they lack a sense of the full situation they're in. normally if you asked them if they need to speak publicly it would go without saying. may view is no it shouldn't. >> bob, you have been talking a lot lately about a systems risk manager. tell us what you were talking ab

. >> that's a good point, where is germany in all of this, bob pisani joining the conversation as well here, investing, you say stay out of equities. >> right now, right -- >> go ahead, sir. >> right now we're very cautious on the markets. the market rallied quite a bit recently and we see growth slowing globally in the u.s. and there is a significant probability that we go into a recession. you know, europe is not going to be fixed any time too soon, and it's a time when i don't think valuations are all that great. profit margins are historically high, i don't think we will make any meaningful movement forward in equities. >> what about the trading glitch at night. this was one more knock on investor confidence, what happened and what can you tell viewers in terms of the trading glitches we keep seeing. >> you don't know what happens. stocks moving way out from where they should be, and is sends a signal of what's going on here, who is running the ship? i think confidence among investors is extremely low right now. we had since 1999 stocks have not gone anywhere. you have crisis after

they're sitting there, they've got a deal. >> thanks, bob pisani. take not only on the fed but on the facebook, too, right? >> we'll get to that in a second. but listening to courtney, listening to bob, looking at some of the inflation-linked securities and etfs and the inflation survey we did, only 7% thought it was a concern. one area that seems really ripe for a massive collision later this fall is this idea that bernanke says the following -- inflation has remained at 2% despite repeated warnings that excessive policy accommodation would ignite inflation. and this seems to really be one of these areas where if you have to sort of predict where are we going to see some sort of massive disagreement come in fall, i think that's it. because he seems to be really digging his heels in and truly believes that all of thekwan quantitative easing has had minimal impact. you and i know there are many people that manage huge amounts of bond portfolios that simply disagree. >> we may be here for a long time. >> we may start to hear again as evidenced by what

bob pisani is live with me talking about how to play volatility. bob? >> i like the vxx. here's the problem wit. it comes with baggage. you need to know that when you invest in it. in theory, it's kind of looking like it tracks the vxx but doesn't exactly. it doesn't because it's tracking slightly different subject matter. take a look at what the performance has been so far this year of the vxx and the vix. down 39% and volatility low. the vxx down 68%. how do you explain that? simple answer is that the vxx tracks futures. futures. looking at the futures, every month buy a new vix future. very steep. the prices go up as you go out. they have to buy these at a higher price. means you losing money every month it doesn't change. it's still a very good way to change volatility short term. if you think volatility will go up, it's a great way to play it. don't hold on to it very long. there's the inverse. this is the best performing note this year. both exchange traded notes up 116% and the inverse. here, simon, essentially betting that volatility is low. you have the same prob

bob pisani is joiping us. hugging the 1400 level all day and wondering about the catalyst to break them apart. >> well, look. it's going to be what's going on in europe the next few days and what happens over amongst comments from central bank officials, certainly, going on in the midwest next few weeks matters a lot. getting heavy volume in the exchange traded funds. look at this. this is the tlt. this is where you belt on where the bond market is going, particularly the long-term bond market. 20-year, 30 years and some of the 10-year ones. we are at a 3-month low here and very important. etfs with heavy volume and looking at the opposite end, the people betting on the short end of this trade here, this is the tbt. this is betting that your market's moving up to the upside. this is a three-month high for that, as well. obviously with the 10-year at 1.8%, there's some people betting corporate bond issuances coming in and the yields going up at this point in the bond market on the longer end of the curve. heavy

bob pisani reporting earlier the drop because of the syndicate bid has been pulled. >> you bought this ipo also? i did. i was in and i didn't write it up, if you remember the stock rallied over 15 up to 15.30 was the high print. >> giant pop. >> compared to facebook it was phenomenal. >> facebook trade up to 40. >> looking at that -- >> or whatever. >> nobody wanted to be long on this thing when it came back down the cindy indicated bid. where is the going? we were on. missed the 15 glad to be gone. >> you wouldn't get back in. >> no. when i called in i was in there for trade aaspect because i thought the deal would be priced better. . >> coming up on halftime apple and google dominating since the facebook ipo and raising the stakes for your living room. who has what it takes to rule the next frontier. all of that is coming up next. how do you know which ones to follow? the equity summary score consolidates the ratings of up to 10 independent research providers into a single score that's weighted based on how accurate they've been in the past. i'm howard spielberg of fidelity investmen

bob pisani talked about today, the inability of these economic stocks, something has happened if this rally -- if this rally's going to go further, that's got to change. so what's going on here? what's behind the weak fundament fundamental commodity shipping numbers? can you believe that? five straight up in the united states. all right, here's the deal. first remember, we're investing in companies. we're not commodities traders. second, we want to see the profits of these companies go higher, not necessarily revenues which is a wildly overrated in the media metric. the media, oh, but the revenues. no. hey, profits, very cool. profits produce higher dividends. that's what investors want. dividends are for our superior from the payments you get from owning bonds. and earnings growth is the best predictor of higher dividends. third, we cannot underrate the power of housing. as jeremy siegle told scott wapner on "the fast money halftime report," 25% to 30% of our economy is directly related to housing. it's been driving retail, banks, mortgage demand. it can even drive packaged goods as

let's get down to bob pisani at the nyse. trying to break the case of mondays, bob. >> yeah. once we got past the ecb meeting and everybody convinces them that mr. draghi is more dovish, we have been off to the races. we are 100, 110 points shy on the dow, mandy, from a new high for the year. we're three-month highs right now. the dow jones industrial average continuing to hold up very well. since thursday. friday morning better. same with the s&p 500. we are maybe 20 points away from new highs for the year and as you mentioned trying to now get over 1400 on the s&p 500. knocking at the door of 1390 and change right now. the big thing that's happening, important, the rotation. remember, we've had all those dividend players doing really well. just about to break 140 on the s&p. telecom stocks, pharmaceutical stocks. but in the last few days, laggards have been coming to the fore and consumer discretionary. that's what you want to see and what's happening here is a bit of a short squeeze in the euro. art cashin talked about this earlier in the day. sitting at an essentially new

anyway, to answer your question, you know, the statement, the last sentence bob pisani spoke to sentences and key sentences in the text but the last sentence basically said the fed will provide additional policy accommodation as needed to p promote for labor market conditions. and that's the key. what he wants to do and the fed targeting in terms of qe as a sustained improvement in employment, lowering of unemployment. until you see several months, several quarters of, you know, perhaps 7% unemployment rates then you're going to see qe. >> when you say as needed, bill, is it really needed? i get the whole unemployment situation but is it going to relore unemployment and create jobs? >> i don't think so. we don't think so at pimco but ben bernanke and the fed probably think so. i mean, ever since 2003 and the helicopter speech, he's basically laid out the plan in terms of the potential policy actions, you know, that are required and, yes, he believe that is additional quantitative easing lead to higher asset prices and trickle down in terms of stronger economic growth. >> is it possible to

bob pisani joins me. you said it's a melt-up. >> we're not going to complain about the volume.rybody is and nobody does anything. pretty simple. we have the euro rally. weaker dollar. that's helping material stocks, industrials, all those risk-on trades we like to talk about here. there it is. techs, materials, industrials and energy. what else do you want? europe is calmer w. this melt-upper with talking about, four-year high on the s&p 500 which is what matters is 1,419. away from a new high. the closing high. i think 1422 the intraday and the same thing with the dow industrials. i think 100 points away from a four-year high in the dow industrials on a closing level. a lot of other groups are lagging here. the small caps and the mid caps lagging, as well. we are a few percentage points away from new highs on the russell 200 and more importantly, perhaps, transports, a considerable lag ward. we're 4% or 5% from the new high on the transports. that's a significant gap. 0% on a new high and dow industrials and 5% on the transports. >> i find that more concerning than the lack of

bob pisani with the latest. relatively flat market. >> good way to describe it.t of the market with a beta of 1. very little movement. everything's tending close to the average right now. there's one outlier, though. i want to put up the major indices. look at the dow transports. again. on the day when they were near four-year highs, the dow transports never came near a kind of high and again today in the other direction. had a really bad week last weekend. underperformed the other major indices and again today. there's a group of people looking for confirmations of dow theory and the russell 2000 underperformed. as far as sectors, simon, either side of positive or negative here. i don't think you can conclude too much based on this kind of trading today but that transports is a problem. >> interesting. worth marking out, as well. the nasdaq 100 although the move is relatively slight could be on pace to close at a 1 1/2-year high. bertha coombs is watching that. bertha? >> virtually all an apple story with apple's break towards yet a new record today. touching $6

bob pisani is going to join us to show you.ling like a million bucks for a couple hours, bmw expands its car share service. see you at the top of the hour with that and much more on the augusta story. back to scotty. >> thanks for that. recent run-up in stocks keep the feds on the sidelines. cut the chances of the fed doing another easing to 40%. the firm's u.s. chief economist joins us now. sir, good to have you on the show. >> pleasure to be here. >> interesting way to enter the segment. how much do you think market gain has to do with the fed's way of thinking now. >> i think the market is optimistic. we have had a bounce in the numbers. there's some sense the economy is doing a little better. people are counting on qe coming soon, i think they are likely to be disappointed. >> people would say the fed, obviously aside from what's happening in the economy that the stock market matters inside the fed. right? you have this wealth effect. stock market doing bad. fed at this point in time would not want to see that. how much do

bob pisani is joining us there. we were up by 33 points on the dow and currently 32 points and in terms of reaction, one point. that's all it is. >> i would agree with brian. i think this is modestly more positive. i had eight districts saying that expansion was at a modest or a moderate pace. not big difference there. now there's nine. i think it's slightly more positive. retail sales more emphasized, as well. i would agree on that. s&p 500. moving up all morning. we have just been moving up here. here's what's happening. we are very close to a four-year high. 1419. we close over that seven more points, look at the four years. we have a four-year high. we didn't hit that new high. we hit it on an intraday basis. there's the one year on the s&p 500 but again very, very close here to breaking out. elsewhere, if you look at the bank stocks, that's what we have moved in a commentary from the fed. not really. moving up throughout the day. citigroup, suntrust, other stocks moving here and most of the bank stocks at multi

bob pisani is back with me. >> what the heck?night, of course. >> yes. >> correctly so and down four days in a row now. we go home on friday. we were at 13,100? now at 12,800. >> that's right. >> near the lows for the day here. obviously mr. draghi not delivering on what the street expected and we have the nonfarm payrolls tomorrow. what's hard is 95,000? that's the expectations. a fourth month below 100,000. hardly awe-inspiring. look at the major sectors and the downside leadership are the big global names. industrial names. material names here. those are the big losers. of course, your more defensive names down 1% in the telecom sector. >> hard to find a reason to go aggressively long this market ahead of tomorrow. and ahead of a weekend in europe where you have spanish and italian bond yields spiking again. >> it's tougher than that. we have earnings over. we know that the third and fourth quarter numbers coming down. and tomorrow after that major nonfarm payrolls over. even coming in at 95, hardly inspiring. >> indeed. bob,