. >> "the wall street journal" reporting that at the cme there is a 10 mill i second gap there who have them co-located at the cme and they're being able to get buy and sell orders in the market before everybody else. that's called latency, the time gap between you know something and the rest of the market knows something and there are ways to profit from that. i talked to the cftc's bart chillton about the frequency of trading and he said one of the things he would like to see is he would like to see the high frequency traders with the cftc so he would know who they are. take a listen. >> the second largest trader by volume at the chicago merc an tile exchange in the past and maybe still today is a high-frequency trader located in prague. if i want to get the books and records because i think something potentially ney fai

. >> reporter: "the wall street journal" reporting this morning that at the cme, some high-frequency traders have figured out that they can get as much as a ten millisecond advantage over their competitors and get a heads up on price information and that's something that's got a lot of people scratching their heads and wondering whether or not there's an unfair advantage here for high-frequency traders. it's an issue that i talked to bart chilton from the cftc about a little while ago. he said one thing he would like to see at least for a start is for high-frequency traders to register with the cftc. take a listen. >> the second largest trader, by volume, at the chicago mercantile exchange, in the past, and maybe still today, is a high-frequency trader located in prague. now, if i want to get the books and records, because i think something potentially nefarious has gone on, i'm not going to have any luck getting this information from prague. >> now, i talked to the cme

this is what the cme told us today. >> we did want to get their side.ally making improvements, they say, to improve inefficiencies. they admit there are some inefficiencies in that whole process. heading toward the close, 15 minutes left, down 141, that's about the low for the session, on a day when the fed said they'll keep interest rates right where they are. >> and a busy day for earnings as well. we'll come back and take a look at how the earnings names are trading and who is still to come. we'll get that from josh lipton, coming up. >> including facebook, those highly anticipated numbers shortly after the bell tonight. we'll get the news and the market reaction and the guidance, all coming up. welcome to the new new york state, where cutting taxes for families and businesses is our business. we've reduced taxes and lowered costs to save businesses more than two billion dollars to grow jobs, cut middle class income taxes to the lowest rate in sixty years, and we're creating tax free zones for business startups. the new new york is working creating t

traders are budging about it at the cme.e check on sandra smith to see if she is going into labor yet. we are looking out for sandra. connell: absolutely. dagen: we are also watching out for you. we are watching the price of crude oil. we will be right back. ♪ everybody has different investment objectives, ideas, goals, appetite for risk. you can't say 'one size fits all'. it doesn't. that's crazy. we're all totally different. ishares core. etf building blocks for your personalized portfolio. find out why 9 out of 10 large professional investors choose ishares for their etfs. ishares by blarock. call 1-800-ishares for a prospectus, which includes investment objectives, risks, charges and expenses. readnd consider it carefully before investing. risk includes possible loss of principal. ♪ connell: breaking news. the boston police have taken three more suspects into custody in their investigation of the boston marathon bombings. we do not know any information more than that. three more suspects taken into custody. let's go to n

how optimistic is the cme's chief feeling?air and president terry duffy joining me in a fox business exclusive. you just got the man of the year award from the brazilian-american organization for your efforts in technology. >> yeah. in the chamber of commerce, also, that's a big part of it also, liz. yeah, it's very exciting to be here, and we have a huge partnership with the brazilian exchange which has become a dominant player in south america. so i'm very honored to be the recipient of this award tonight. liz: i don't know how you keep all of the trades together, the technology, 300 million trades in a single day through the cme. you look at when the s&p analysts -- what the s&p analysts are saying, they know volume rates are down, but they're also saying once the fed starts to get out of its easing policy, you'll be a men tissue ri. >> we will. liz, and we'll be a beneficiary not just in our interest rate complex, but i actually think we'll be a beneficiary in all of our asset classes. liz: that's a headline here. not just

we have those waiting for us on the floor and cme and imex.oing to nicole in a moment, but, first, our traders, talk about teddy, these new names, i guess, old names, hitting new all-time highs or 52-week highs, especially disney, teddy. what are you liking? >> well, you know, the rising tide floats a lot of ships, and the fact they keep coming from the large cap names, the legacy names, if you will, i think it is certainly almost a positive, but yet a negative vote because folks chase the pristine balance sheets, as they should, maybe a little uncomfortable and nervous for the market with the levels they are at, don't understand where we are where we are at, but yet here we are. the nervous money gravitates to disney, balance sheets, but that's driving averages, and, of course, all have new highs as you pointed out. cheryl: teddy, it seems in the last six months of the rally riding the wave of, there's riskier sectors getting love, and that we are seeing the retail investor get back into the market. you don't sense that a little bit? >> well,

gerri: 61% of the cme. we have a story this week that there was a flash crash because of a tweet that was fake. we have had high-frequency trader stories. is it any wonder that some 76% of individual investors say, i don't want to invest in stocks. >> how long is that? this coming monday is the third anniversary of the class crash. for your viewers understand the magnitude of what happened that day, a stock like a censure went from $44 per share to less than a penny, back to $44 less than an hour. that is nunn's. it is three years and we have not seen any major regulatory reform. the sec has had lots of other issues to focus on. it. gerri: s true. some people think these traders should be fine. do we impose a tax? >> sexting is the absolute wrong thing to do. taxing is moronic. that is just a way for washington to put a little money in the kitty. it does not solve the problem. the problem is we have to look at the structure of the equity markets, the commodities markets and ask a simple question, are they l

rick santelli at the cme group in chicago. rick? >> good morning, jim.l, this morning we're not seeing a huge amount of selling pressure in the treasury complex, but a chart will show you when you included the revision the market was impressed with friday's labor report and hence we did see some selling and today the journal was talking about customers and institutions that trade fixed income just missed this rally. funny time to talk about it because many think it's time to actually start selling. look at the chart going back to december 1st. it looks like yields have bottomed in the lower 160s. if you open it for one year of the boon you can clearly see patterns have changed a bit although the spread continues to widen against treasurys. now let's look at the different maturity and let's look at the jgb market, ten-year to be specific and if as you look at the jgb chart, its had a lot of volatility, and i will tell you this, it's still contained by 60 basis points and still one of the most looked-at charts to on the trading floor and if you look at the

traders at the new york stock exchange, cme group and the nymex. first our traders, looking like we were continuing to have four weeks of gains the s&p and the tao. >> down seven points we consider how far we have come in such a short period of time, i think i don't consider this any weakness. trying to add to that string, but i am not sure how important that is. i think what he is dragon today is a reversal in the gold and silver which coincides with the dollar being weak, is another example of a sold-out sector. psychological pressure. never the reasons it reverses and who knows, i don't know if the downdraft most commodities are over, looking at a weaker dollar. liz: it doesn't surprise me you get one comment out of japan, who knows how people interpret these things. we have crewed up on the game, natural gas i like to look at. lately it has been holding above the $4 per mark unit, so this is something people are looking at right now. >> you know what, it really turns to what you have touched on, natural gas commodity as a whole is the only one

phil is in the pits of the cme, so i want to start with phil.king at that action today, and i was asking our trader earlier from the cme, when you came in this morning, was everybody talking about that article from the journal in the afternoon from friday about the fed starting to have real conversations about pulling the rug out a little bit? >> yeah. that was, like, that was a huge part of the morning that we were discussing. i mean, the first thing everyone came in and they saw was weaker data in china, then they were also attempting weaker retail sales. so we saw a lot of people selling coming into that. and after the retail sales came out, i think those guys started to trickle pack in, they started to look at some of the stocks making new all-time highs or 52-week highs, they started buying into it. but that seemed to be the head scratcher, when are they going to pull the plug on this thing? i think there's no chance ahead of ben bernanke stepping down or unemployment getting anywhere close to that 6.5%. so i think we're going to have this

let's go back to the cme. scott shell lady, what is going on there?we're closing with after decent gains of last week. this is positive as far as the last four or five days. we've been rallying on those the gains that in on monday is still pretty bullish. david: good news. thank you, scott. good to see you. liz: trip advisor investors are jumping in as deutsche bank gives the stock two thumbs up. let's head back to nicole petallides on the floor of the new york stock exchange. it hit a brand new high today. >> that's right. it really did, it hit an all-time high for trip advisors. you see the up arrow. it closed 62.63 but trading above 63 bucks at 63.01 to your point about deutsche bank. they're maintaining their buy rating. they put a new price target of $68 up from 60. they have been more positive on the sector overall and potential margin stabilization. that could be a catalyst for expedia. priceline, the firm up graded priceline as well, to a buy, trip advisor, as you know, they did keep that as a buy as well. deutsche bank getting hot on the onli

phil flynn is in the pits of the cme. do we have storage for all of the oil?> we are running out of it. i can tell you that. it is all about the oil boom you will be talking about a little bit later. we are hearing concerns out of saudia arabia. they are getting nervous. should they expand, should they not. it is not all for the better. there are concerns about the economy right now. can the fed save the oil market right now? commodities are contracting and there is a lot of concern. china, the second biggest consumer, their numbers are bad. oil is really down right now. whether it can bounce back or not may depend on what the fed has to say later on today. melissa: phil, what about natural gas? >> knocking off the 2011 hide. we are seeing natural gas as a risk aversion from oil. melissa: great. phil flynn, thanks so much. great news from the northern plains. finding twice as much oil and three times as much gas as previously estimated. what does it mean for the state of north dakota? joining me now is senator john hoeven. in terms of tax renewal, i mean, righ

jeff flock at the cme. jeff, what do you think?ch driving in the midwest this holiday season because it was nasty awful weather. demand is down. first the take on oil. everything up today. consumer confidence up. home prices up. there's no way for oil not to be up. >> there's not. it's going to be a tucks of the economy doing, it's doing well this morning, and prices of oil going up. supply and demand is not working now. >> other factors, the boards, we got opec meeting and concerned about u.s. production. dan, we are producing a pile of oil. they are afraid of prices. >> yeah, saw it today, the eagle formation and texas 500,000 barrels a day, higher than they thought, the oil field in north dakota, again, doing real well, so the -- the middle east countries are worried. saudi arabia is not, and they are the lynch pin in the meeting. >> the numbers up, pretty much flat. we had a terrible -- you and i talked about vacation, the memorial day, awflg. >> right. >> demand lower than we thought. >> right. >> prices not going anywhere. >>

head back to lincoln ellis in the pits of cme.ou could answer the question, lauren with the negativity that continues next week? >> well, see how we finish it. we broke the 132.5 level. we're trading, 116.2, if we stay close below the 1350 level it will cause technical traders to rethink how they position themselves sunday night on the open. certainly divergence between sentiment and driven by stock market pricing could also begin to turn. you get the aggregate effect that could definitely begin to cascade things, mopped, tuesday, wednesday. that jobs report next friday, that is what people will looking at. i imagine we trade a 10.range by the end of next friday and have another fun day like today. liz: like today. david: i mentioned april 15th. it should be noted that was the day of the bombing at boston marathon. for the market to go down 200 points without a major event like that is significant. liz: indeed. lincoln, thanks very much. >> you bet. good to see you guys. liz: we've been seeing changes inside the federal reserve re

let's get to jeff flock in the pits of the cme.f. >> reporter: euro dollar options pit as they finish it up, liz, and you're absolutely right. oil today made sense. wti and brent both down about a percent, that's about a buck each. why? because opec output is up, and china demand is down. as you point out, inventories are high. natural gas, however, that's weird. why is natural gas so weird right now? up about .3%, approaching $4 again. why? frost on his lawn this morning when he woke up. it was 30 degrees in chicago. tomorrow it's going to be 81. both of those things, air-conditioning and heat, bullish natural gas. speaking of the weather, corn today -- i always say, you know, you can make money in corn. take a look at what it did today, up about 20 cents. that's about 3%. every day you don't get that crop in the ground, and a lot of the midwest has still not planted corn, you reduce the yield on the back end, and that's also had an impact on soybeans as well, up 20 cents as well. money to be made in the ag room because the fear i

phil flynn of the price futures group at the pits of the cme.id it offsets the record supply levels? because it has been a wild week for crude. phil: you have to call his great expectations because it is not about demand, it is what the jobs may mean for the future. it is absolutely nuts. two weeks ago it was below 85, we have gone up over $10 per barrel in the two weeks. and it is all about expectations. oil prices selling off hard and concerns about weak demand. building supplies, the u.s. going into a slowdown, concern about europe and snap your fingers, that has all changed. a great jobs number, now the market is excited about demand, but let's face it, it's not all about the job numbers, it is about the federal policy of the fed, you cannot fight those guys. melissa: absolutely. the jobs rate: 7.5%, the lowest level in four years. the temporary jobs are at an all-time high. is it a case of quality versus quantity? nobody better to ask when the feckless michelle gerard, chief economist for rbs. you never get tired of that, right? >> now, i g

the traders at stock exchange, cme, and nynex. of course, nicole petallides standing by.ant to get to the traders. we begin with doreen. i just gave that stuff 70 percent of the company's. better and better. yet they are still continuing to have a little bit of negativity where people are saying, watch out. they're missing certain revenue misses or bottom line, top lines >> reporter: everything seems to be so good all the time. recently, new high after new high. suddenly five months of straight dow jones new record performance . we get some disappointing job numbers out of atp. so a stark realization when you get numbers like that in the midst of good news because really the trend in the market has pulled itself away from reality, if you will. we are still doing very well and probably will for the rest of this year, but only because of the federal reserve. they guy industry does not big things are terrific. liz: you know what, we should have mentioned at the top the report because it was a big base so many hours pass and that you have the fed announcement. people think th

traders at the new york stock exchange an cme and imex watching every tick as well as nicole. let's goat to the traders. mark newton, okay, i was looking to see when, probably in the last hour you saw erosion here. what are you saying it is? >> off the highs, but tough to make it a reversal. there's a couple things, and one is the u.s. dollar has the biggest moves seen in the last few months, just in the last couple trading days which is significant. there's been a flock back to the defensive names and sectors like utilities and staples, not sexy, but working. there's a pullback and movement back into the defensive sectors. interest rates hit a temporary peak, rallying 160, 2%, and that's backing off a bit. there are signs that some of the economic numbers could start to have impacts. liz: gary, so spotty, you at the cme see at one minute everything mark says is correct, you see that, but it's on a day-to-day basis, and then things change, and we're healthy again. >> light volumes in the market, and what he was saying earlier, seeing the dollar at nine month highs right now. w

traders of the new york stock exchange, cme, and the nymex. i want your impression as to why the markets are taking bad news is good news. is it how we characterize this, that they think the fed will keep being the lead actor? >> no question. bad news is good news. we are all on this disease that the fed is feeding is which is called liquidity. anything that is going to stop that jews from flowing to the market makes everybody nervous. we saw that a week ago when we had that. bernanke was speaking in their release the minutes. that big won a reversal which i think a lot of folks, myself included, it looked like we put in the near term top. here we are now all week in a couple of days later and we're off to the races again. it is clearly a lot to do with what the fed might on might not do. liz: if we have s&p leaders right here, we just showed the dow leaders, high-tech names, cisco, things like first solar, not just financials looking good but they were we get this to our vision. in your experience, was the last time you saw this kind of behav

let's go bac back to the pits oe cme. what does it look like for tomorrow?lly wants to have that anymore because with earnings season coming to a head, but of great economic reports, these guys are all flattening out. i saw it get down about 702 and rallied back. it is a really key support line. liz: shares of news corp. hit an all-time high as well. nicole petallides on the floor of the new york stock exchange on this one. nicole: that is right. with a stock that has done so well. the parent of the fox business network came out reporting quarterly numbers that beat wall street expectations, they had growth in the cable network and also media company knows they are splitting in two. a new company, 21 century fox, they have the new logo and there it is. an all-time record high of 3404. obviously a big winner, 46%. back to you. david: a record amount of withdrawals is dragging prices lower, part of the reason it is down. the precious metal down 13% so far this year. nelsonow some would say the rect tumble eight nothing yet, it is just the beginning and warning

we have traders at the stock exchange, cme, and first to the traders, do we focus on, as i mentioned, next possible correction or the fact that we saw real resilience? >> well, i have to tell you i think the market is just waiting for -- comes in, people wait to buy it. you know, this is the most divided opinion i've seen in a very, very long time. there are some people who are terrified we are really too top heavy and don't want anything to do with the buying stocks and others can't wait for it to come in more to get back in. you know, we listened to larry fink commenting this morning thinking the market roars for six to eight years. when you hear things like that, i have to say i'm bullish. look at apple today. that's the bottom. people talked about apple a lot this morning, so -- liz: you know, i think, dan, when you looked over at the cme, that doreen talks about it, and she's not -- give legitimacy to what you say, never a cheerleader pounding the table constantly. right. >> you've been worried and concern, but, dan, you look and say it just is a tough market to beat right now. >

plus we've got scout bauer in the pits of the cme. let's start with scott. so we have the umich data. that looked healthy. that helped propel the markets. we never saw a down move by the dow. >> we never looked back. it was those classic melt-ups. it was unbelievable. down premarket. came out up three or four points in the s&ps and a straight slow grind shot up from there. i'll tell you, not only was there many shorts getting squeezed in the equity markets, there is a lot of twice out here they were telling me, that got squeezed today also. after a little downdraft yesterday, guys went home a little short. actually thought this might be going into option expiration today. maybe a time that we were going it see that pullback but uh-uh. these guys were short and they're all covered now. actually if anything, they are really bullish going forward. this is just crazy. that consumer sentiment number came out today, unbelievely bullish. we're also seeing the vix trade back towards almost that support level, 12.5. it went lower than that today. the rest of the week

todd horowitz at cme where the action is on the cme and commodities trading. todd --. david: go ahead. is that ashley? >> still waiting. david: as soon as facebook comes in. looks like they're just about to report. first i have to ask you, todd, looks like what is happening with the fed is of little consequence when the market was looking at those economic numbers? todd horowitz. >> nothing happened. market has been underpressure all day from the adp jobs number this morning all the way through. once numbers came out, we actually had a little bit of a rally and we sold off from that. it is very controlled selloff. no panic to the selloff. the market got what they expected from the fed. the market seems to be under some pressure now. today's selloff was a little different than the last couple we've had. this was very controlled. there is no panic. this could be a tippingpoint where we start the correction. this is the first year in 17 years that the market has not had at least a 5% pullback in the first four months of the year. we could be on the mend here right now, lo

over at the cme we've got dan standing by. happy monday to you. what are you watching right now?you know, i'm keeping an eye on economic data of late. last week's friday numbers were a little bit better than expected. it wasn't great by any means, the ism data was expected. i hammer on this all the time that i want to see a few months' worth of events. we had some bad numberses, those made it better, let's see what the next couple months bring us. we have retail sales coming out next week, and then i'm going to make a full commitment. i was looking for a pullback, and i was contingent upon data, i'm not getting out of the market, but i won't add until i see some data go better for forward days here. cheryl: yeah. again, the old adage, i know we're probably sick of hearing it, sell and they go away, but there's more of a course of analysts recently that seem to say don't think that way this year. this year is different, 2013. yeah, we hope so. >> i'll agree with you there. cheryl: guys, thank you very much, and happy monday to all of you. obviously, we've got 55 minutes to go. the

todd horowitz is at the cme.d, let's talk about what happened with gap because this, when you think about what happened to jcpenney and the demise, essentially, of at least that business model if not the company, and you think of turn around of gap, it is remarkable. >> hi, david, hi, liz. yeah, they did a great job. they caught their problems a few years ago when they first started to struggle, and they adjusted, and the stock is up, over the last five years it's up 133%. the charts expected them to move earnings. it's not fast movement, but it's real steady. the charts look great, i would look for it to pause but certainly wouldn't want to fight this trend. they do a great job, and they really fixed their ship when they were in trouble a few years ago. liz: they sure did. let's get to jonathan. in looking at the broader market, you feel things look pretty good near the u.s., but you are looking overseas. where and why? >> yeah. so we're contrarian value investors, and we think the u.s. market has tremendous opp

larry shover is in the pits of the cme. larry, i want to start with you and let's start with the we talked about how the stock market rallies are moving from fed based rallies to the economy based rallies but today looks like the fed was moving the market. >> i believe you're right. a painful panic feel to it. more like binary feel. traders feel like the fed is going to do nothing or continue with the 85 billion per month, not own thinking there will be something in between and maybe the fact that inflation is not high enough, our jobs picture still isn't good enough but traders are very panicked right now and don't know what to do. thinking there is binary trade tomorrow. a big negative in trader's mind. liz: wait a minute. panicked that is a strong word. >> yeah. liz: tell me what do they fear the most here? >> well what they fear the most the market will continue to grind higher. i feel like most of us don't have appropriate exposure to the market. liz: okay. >> when, yeah, like this morning, we have small dip in the mar

we've got traders at the new york stock exchange, the cme group group and, of course, the nymex.athan, interesting balance between the rate cut we got from the ecb, the cheap money flows around the world x then you have this unexpected drop in jobless claims. what do you weigh as the more important factor for the markets today, jonathan? >> i think right now the factors, the economic data coming out of washington with the jobless claims because that's just going to tie into the unemployment number that we get tomorrow x that's what everyone looks at. if you look at the far this week, it just gets back to the same thing we've been talking about. a lot of conflicting data, a lot of conflicting feelings going back and forth about this market. as soon as there's one day of selloff, everyone starts to say is this the selloff that we've been waiting for, and now everybody waits to see how the market reacts, and once again we move up higher today. tomorrow we've got the unemployment number in the morning, and also interesting is going to be yum brands earnings. we've been talking about

mash sebastion in the pits of the cme. first to you, mark, we have the situation where the u.s. dollar finally went above 100 yen. that was 102. you had some real action there. did it affect the markets or what pushed us up above to the upside this last hour? >> you know, i just think that just, it is just good growth in the economy. a strong dollar, low rates, falling oil, and high stock market. i mean seriously, if i had like a boat drink in my hand my day couldn't get any better right now. the only real black eye on market is gold which i think is short the world trade which i think we're falling apart. those that think the u.s. dollar is toast are getting beat really badly. so, my friend brian calls the stock market, calls it the tina trade. there is no alternative. if you're looking for yield, you have to go into the s&p 500. you have to go into the stocks. to get that dividend yield. against basically everything else out there. david: well, you mentioned the dollar. the movement of the dollar is what really affected commodities early on in a big way. they did sort of mello

jobless and gdp numbers are being watched at the cme. jeff flock? at the scenes in the bonds. huge volumes over here by the way. yesterday set an all-time globex record across the entire exchange of 23.5 million contracts. it was led by the treasury futures and options. that's what you're looking at there right now. 13.2 million contracts there alone. but let's take a look at the gainers today. as you point out, oil is up, only about .2%. i tell you i had brent as one of my gainers too but that just went negative. gold also up obviously when it looks like the economy is not doing quite as well. the fed stays in there while gold continues to rise. the loser side, how about nat-gas? that's down about 3% today. we expected that. corn and beans also down. a lot better weather in the midwest. the rain has shut off for the moment. i want to dive a little closer into oil though, because in addition to today, the other information we had, also information from the energy department on oil stocks. up to 397.6 million barrels. that sup three million from last

and larry shover in the pits of the cme. let's get to it. [laughter] kind of sitting there waiting.'s get to it. what do you think of today's action? we saw huge gains and then pared back just a bit. >> exactly. the question ii, what isn't happening? we come in this morning, the nikkei down 5%. now, i know it's up 30% for the year, but still down 5%. a downward revision in gdp, home sales didn't increase as much as expected, and jobless claims added. so right now bad news isn't necessarily good news, i just think right now the market is accepting the fact that we're growing ever so slightly. and even with tapering, the market is acting very robust right now. we didn't see any large selloffs. yes, we are off a little bit, but still charging higher even with bad numbers. david: all right. let's talk about tapering in the stock market, because the rally -- we did -- the rallies, let's face it, are not as strong as they were a couple of months ago. but the pullbacks are weaker than they were as well. so are we in some kind of sweet spot here where we get a slight pullback, but then an e

. >> this is an enormous mass ejection, a cme. >> put it into context for us. >> this giant rolling solar wave can shoot more than a billion tons of particles into space at around a million miles per hour. this was not directed in a path toward earth. no worries for us. it is a lime lapse. >> it is beautiful. >> i love the fact we're able to capture this stuff t is it give you perspective there is other stuff going on in the universe. spectacular. >> it is a shootout showdown in broad daylight. >> the driver has a gun and he starts firing. >> yikes. this is close range, too. >> see why this gun fight was one big misfire. and the copter drone flies high above the race to watch it all. >> directly over the heads. you're getting a way better look than any of these spectators. >>> you don't expect a gun battle to erupt around 6 p.m. in broad daylight. that's what happened on a milwaukee street and part of it was caught on surveillance camera. witnesses tell milwaukee police it started with an argument that turned into exchange of gun fire on a porch. i want you to notice the red car at the cu

todd in the pits of the cme. >> hi, liz, a little bit softer close here.nk you got to watch tomorrow's jobless claims, cpis, and the philadelphia fed, but watch volume and volatility. as long as they are low, the market continues to go higher with funny money. david: all right, todd, thank you very much. by the way, moments ago, cisco reported better than expected third quarter earnings, stock jumped after hours, and, in fact, they are continuing to go up. nicole is on the floor of the new york stockics -- stocks exchange, up 5%. >> that's right, looking good with the quarterly numbers, earnings per share, and that's a beat of 51 cents against the estimate of 49 cents, good news there. look at revenue, coming in at 12.2 billion against 12.18 billion, so also a beat, and also the commentary we see from cisco saying things such as starting to see good signs in the united states and other parts of the world which are encouraging. nice to hear outlooks as being promising. also talking about product sales and stock repurchases, and with that, it's up about a bu

we want to to back to larry shover with the pits of the cme.vious a huge day for the bulls, with the dow closing above 15,000 for the very first time ever. and you were saying we're asking the wronggquestion, if this market continues to grind higher, no risks or catalysts in the near term. what do we do from here especially if you have fresh money to invest? >> right now it is important to recognize that stocks are tired. that is important to remember. however tired tape doesn't mean one that will be for sale. to so -- so to answer your question, slow and steady did i is the pace. you'll never pick the reich sector or right industry at the right time. slow and steady. we see some momentum. growth has not collapsed but there is no momentum. we need something to propel us further. right now slow and steady. enter the market? in a broad portfolio. lori: one heck of a market. david: low slow and steady, dow at 15,000 long before folks said it was possible. lori: shares of jcpenney are baking higher after an unexpected announcement. nicole petallide

cme group retained a company to explore the sale of nymex building.the buildingis full, cme will continue out the nymex trading floor in new york. that's the latest from the fox business ne power to prospe. melissa: the so-called volcker rule that bans proprietary trading will soon be fully implemented by regulators but banks say squabbling over what the edict means continues. charlie gasparino has the latest. >> we should point the volcker rule was essentially a post-financial crisis rule to prevent excessive risk-taking. banks using their own balance sheet to trade in the markets. i don't believe that is what caused the financial crisis but paul stroller thought it contributed to some losses. since dodd-frank was passed in 2010 there was allegedly something in there called the volcker rule which banned proprietary trading. guess what it has never been fully i am meanted three years after the fact. we have an impasse. banks, interpreting volcker rule on their own without very little input from the fed and sec which are the two main regulatory bodies

price features group is in the pits of the cme.global demand is what is weighing on crude right now. >> absolutely. and if you look around the globe, whether it be china, the ts, european unemployment, is going through. around the globe, there is not a lot of reasons to be optimistic about demand. and in the past when we have that type of situation, opec used to cut production, drive prices up. but they realize, with the economy being so delicate and the gas revolution in the united states committee have to be very careful that if they tax production they could do more damage to demand what they could actually lose market share. how the markets react? to the downside. across the board. he looked at heating oil, crude oil, even gasoline. across the board. down after that big opec decision today. ashley: and so what does this mean for prices at the pump this summer? >> well, we just heard aaa came out with $3.50, looking for prices that fell dramatically. you know what i feel bad. every time we make a prediction like that something b

alan knuckman of trading advantage joins us now from cme group to talk about a couple of stocks. let's start with chesapeake. what do you see in the charts with this stock, alan? - this stock has been trading between $16 and $22 since june, so it has been going sideways. a breakout on this target is $28, and it's a long-forgotten stock. we have seen a lot of these stocks - cleveland-cliffs, u.s. steel, a lot of these materials-type stocks - really have been not participating with this rally. so it is going with some out-of-favor stocks, looking for a rebound. - there was a lot of controversy about this one and the ceo. so is there a way to protect yourself in this play? - i am looking at a limited-risk option, buying and in-the-money call for january. it has nine months of time for development. the bottom of the channel is $16, so buying a $16 call for january is going to cost about $4.25. that is my maximum risk. my break-even is about $1 higher, with nine months for price development. and i think this stock has been beaten up and is due for a rebound. - have to mention facebook

what better way to start off the weekend than with a trip to the floor of cme group, where alan knuckman and james ramelli are standing by for traders unplugged. good morning guys. let's get you going with topic 1: konnichiwa japan - is it too late for average joes to invest in japan? - we had a big unwinding overnight here in the last couple of sessions, down about 7%. but that's after it has been up 40%, straight up; so, that's only to be expected after that kind of move. - right. you know, they came up so far, so fast, that any little piece of bad data we had - poor chinese manufacturing numbers - is going to send some people running for the exits. i think it was a good buying opportunity. i got long the dxj over the ewj. you want look at a buying of the dip, look at a 5-minute chart of those today. - and looking at the ewj, there is solid support at $11. you can use that as a level to lean against. that is the halfway level from the 1999 highs and 2003 lows, and also the halfway level of this last leg from 2006 to 2009. lean on $11 in ewj. - leon on it. topic 2: bond crossroad - the

joining us from the floor of cme group, alan knuckman and jared levy. good to have you guys on the show. let's take off with topic number one, bite of apple: apple is issuing bonds. is this a smart move? - it's a smart move for apple. i mean, they are keeping their cash, they are borrowing money, they have got a very high rating, and they have got the interest deduction on the interest that they have to pay out on it. - it would have been nice if they would have been able to bring their money back from overseas without having to pay extra taxes. now, that said, i agree with alan. i would be borrowing money here at apple. 0.6% for 3 years? i mean, listen, it's pretty much free. the bottom line is, can they innovate? and right now, i am a little concerned that apple's, a) their new iphone, and b) their ios 7, may be delayed and may cause more problems with the stock. - now, a 30-year interest product on apple - are they going to be around in 30 years, or are they going to be sony? - so are you buying it or are you selling it? - i would stay away from it,

cme says in a statement it's "continually making improvements to our trading platform" and its goal is to "bring variability as close to zero as possible." the owner of the chicago cubs is swinging for the fences. tom ricketts says he would consider moving wrigley field if plans for a larger scoreboard and more signs are not approved. it's been a long-brewing battle with the city, the team and rooftop owners who don't want views blocked. ricketts maintains upgrades would drive more revenue to wrigley. forbes lists the cubs as the 4th most valuable franchise at $1 billion. the cubs have not won a world series since 1908. still to come, why employees at warner brothers will be sweating it out this summer. but first, insider tips on how to travel through europe without breaking the bank. first business continues right after this. this neighborhood sure has changed a lot over the years. you know there was a time when people like me couldn't live here. i'll never forget being told i wasn't welcome in this neighborhood. well i own this building now, the fair housing act made a difference for

joining us from the floor of cme group, alan knuckman and andrew keene, ready to kick into high gear for traders unplugged. hello guys, and in topic #1, we are going for a tesla ride. the stock is now trading above $100. they've paid off that government loan, but some states are having issues because tesla sells cars online. is it too late to get in? - absolutely not. i don't think so, because if you look at the stock, it's all price action, price momentum. i don't actually care what most companies do. i look at the price action, price momentum. $98 is the breakout level from before. it tested that two days ago. as long as it stays above $98, i think it's got clear sailing. - i was wrong. i thought it was going to go to $60. it traded between $20 and $40 for a couple of years. i thought it was going to go to $60, it has gone much further than that. you have to sometimes step back and let things go. you don't want to be short this stock. - absolutely not. - look at the short interest. that's just a painful lesson for a lot of people to learn. we've seen it now in j.c. penney, we're se

in this week's traders unplugged, joining us from the floor of cme group, alan knuckman and james rameli. good to have you guys here today. topic #1, because we are good to go: are you a bull or a bear, and what could possibly happen to change your mind about this market? - i am very bullish, as we all know. i am a son of a psychologist, so i am looking at this from that standpoint. i am not going to give up on the bull run until all the bears finally give up and want to be buyers. - right, so alan is talking about a price action approach here. i want to look at something a little more fundamental. i am also very bullish this market. however, we do have this debt ceiling issue coming up. september 20th is the deadline. the house of representatives voted today on which creditors they would and would not pay if they hit the limit, so i don't think there's any chance of a halfway civilized agreement being reached by the deadline. - ok. the politics of this are nonsensical in the first place, but i want to put a spin on this: we've got to remember there's a lot more upside left in the stock

about explosive moves in the stock market, alan knuckman and andrew keene join us from the floor of cme group for traders unplugged. topic 1: what's up? there are wild calls on this market. some people are saying s&p 500 - 1,900. maybe we see the dow at 20,000 by 2020. is now the time to become very, very bullish on this market? - i don't think so just yet. i am more long than short in my book, but i always have short positions on, i am always short the global growth stocks. gld is one i am short. su i am short. so i don't mind being in some short positions. i'm being long in consumer staples. being long google is the right play right now. being long some other plays in the real estate market as well. banks. - i would like to point out that the small stocks have led this rally. we have got the russell 2000, which is up 16% more than the rest of the market. so, looking at the russell, technically speaking, you could see a move up to 120, and that is about 20% higher than we are here. so, technically speaking, there is still a lot of upside left. - topic 2: gov-mint. the deficit is shrink

who have them co-located at the cme and they're being able to get buy and sell orders in the markethe time gap between you know something and the rest of the market knows something and there are ways to profit from that. i talked to the cftc's bart chillton about the frequency of trading and he said one of the things he would like to see is he would like to see the high frequency traders with the cftc so he would know who they are. take a listen. >> the second largest trader by volume at the chicago merc an tile exchange in the past and maybe still today is a high-frequency trader located in prague. if i want to get the books and records because i think something potentially ney fai fairious is going on. >> they said that this latency or this timed speed gap here is a result of technological issues. it's not in place all of the time and in all markets, but they said that they are working on their technology and they would like to get this gap down to zero at some point in the future, but it's not at zero now and that's the issue for traders is is there a built-in advantage for these

cnbc contributor is at the cme and barclays is upgrading from overweight to equal rate. so far this year the shares have climbed more than 25%. >> aig was the stock that we love to hate. the ceo said himself they will be very prudent moving forward. >> all right. thank you very much. in the meantime, ubs upgrading from buy to neutral. >> we like this here and one thing i really focused on is getting new folks in the door. i think they have a shot and we will see if david can take down goliath. >> the stock right now is up 2 and 2/3%. what do you think? are they right? >> well, we have seen a big move in this space. >> 4 million prescriptions. we're going to see this upticks. i think you can. >> all right. it's up a full percent on today's trading session. good to see you again. have a good rest of the week. >> still ahead here, a story about our competitor, bloomberg, that has many in washington looking over their shoulders. you never know who is watching when you log on. [ agent smith ] i've found software that intrigues me. it appears it's an agent of good. ♪ [ agent s

. >> they said while there are are and can be instances with any technology cme group is continuely making improvements to increase efficiencies. and it appears on the public data feed. this gap is not intentional. just the result of technology not necessarily being up to speed. they say they are working to get that down to zero as best they can. the answer appears to be that yes they are. >> i would think they would be. that's the way they work. appreciate it. >> if you thought our lawmakers behave badly, check this out. we will take you there to show you what started it all. >> coming up, power pitch. start ups give us their 60 second pitch. >> jesse lawrence, the founder and ceo. >> we get you inside the fast paced world. tdd#: 1-800-345-2550 companies breaking through. tdd#: 1-800-345-2550 endless possibilities. tdd#: 1-800-345-2550 with schwab, i search the globe for the big movers. tdd#: 1-800-345-2550 i can trade in 30 different markets tdd#: 1-800-345-2550 to help me seize opportunities, tdd#: 1-800-345-2550 potentially better returns and new ways to diversify. tdd#: 1-800-345-2550

cme will continue operation out of its trading floor in new york.uneral home and cemetery operator is joining forces. the deal is expected to close by the end of the year or early next year. that is the latest from the fox business network. giving you the power to prosper. ♪ ♪ [ male announcer ] every car we build must make adnaline pum and pulses quicken. ♪ to help you not just to stay alive... but feel alive. the c-class is no exception. it's a mercedes-benz, through and through. see your authorized mercedes-benz dealer for exceptional offers through merdes-benz financial services. i did? when visa signature asked everybody what uraded experiens really mattered... you sugsted luxury car rvice instd of "strength training with patrick willis." come on todd! flap them chicken wings. [ grunts ] well, i travel a lot and umm... [ male announcer ] at visa signature, every upgradedxperience comes from listening to our cardholders. visa signature. your idea of what card should be. connell: markets now continues on what has been a tough day for the markets.

let's said to the trading pits of the cme and phil flynn to se how your memorial staples of trading. been a very challenging year for the cattle ranchers. there is good news. corn prices have fallen down. 50% more cattle lower prices. a big discrepancy which in the cash price, we have been paying in the futures market. cheryl: from the queen of television to queen of the farm. the latest bend's venture comin up an hour west coast minutes. cheryl: -- dennis: memorial weekend, this summer will be no vacation. mr. gilligan some of the day's winners on the nasdaq. thank yo orville and wilbur... ...amelia... neil and buzz: for teaching us that you can't create the future... by clinging to the past. and with that: you're hisry. instead of looking behin.. delta is looking beyond. 80 thousand of us investing billions... in everything from the best experiences below... to the finest comforts above. we're not simply saluting history... we're making it. how old is the oldest person you've kno? we gave people a sticker and had them show us. we learned a lot of us have known someone who's lived w

rick is down at the cme. >> how you doing? the number was a surprise for those looking for underperformance. historically it's not a huge number. revisions, you know the story. yields are up. we are making new low yields going back into december. what a difference a day makes. now if you look at the ved we keep talking about europe tens. it went out to 60 and koun down to 40. this spread is a great trade. >> thanks rick. you're up to date on the bond market. hi, sharon. >> hi. we're just minutes away from the close in the gold market. after we got that positive jobs report. but a lot of the focus has been on copper which closed just about a half hour ago. it is up over 6% on the session. a lot of folks focusing on the fact that the metal exchange have declined. that report is something that helps to do the game. you are looking at copper on a tear. >> thank you. let's get the trading action. bob is on the floor for us. our eye on the floor if you will. >> looks like it will be a strong close. >> you want to watch the market on

we have live reports coming up from that nyse and the cme.good, but it is not great. dennis: the box office takes may be too small. we may have a way to make money on it in my media minute. cheryl: you cannot always get what you want. the rolling stones forced to cut ticket prices. we will have details coming up in the west coast minute. dennis: unemployment rate dipping to 7.5%. the lowest in five years. we have team coverage. nicole petallides and phil flynn. nicole. nicole: let's take a look at what we are seeing here with the market major averages. the dow 15,000. you can see it right now. it has pulled back. we did cross the 15,000 mark. we traded as high as 15,009. the s&p also touched and rope through records. we watched that. new highs there. the nasdaq composite hitting levels. the employment report with some good news. the catalyst for the day. we are at the date of the earnings season. at&t, visor and jpmorgan are the exception. caterpillar, 3m and hewlett-packard helping to cape the bull market going today. phil flynn, what is goi

we had the cme group on oil and natural gas do all the volatility that we have seen. if you really want to know, in the marketplace, keep your eye on the marketplace. that is the global benchmark that a lot of traders are watching to see how it will play out in the oil. >> not a huge oil producer. >> i think what you want to watch is the risk. you want to watch for the potential. >> and iraq is a really important oil producer in the middle east. 45% of new supply growth between now and 2035 is supposed to come from iraq. so any sign that iraqi production at risk would be very worrying to the market. >> how much of this is going to be russia? right? russia, to me, remains a big wild card. >> russia is a big backer. they have their naval base in syria. it is a question of, you know, could russia put influence on? even if they weighed in, i don't think you can put this gee knee back in the bottle. i think it will be a nasty fight to the finish and i'm not sure that western powers can do much unless they will actively intervene to bring the conflict to a speedy resolution