todd horowitz down in the pits of cme. todd, let's talk about the interest rate. it is almost like a collapse. it has gone down 21 basis points just this month on the 10-year. what is that telling you? >> hi david, hi liz. depend on what side of the camp you're in. if you're a bull everybody is selling foreign debt and buying u.s. foreign debt is much higher and selling into arbitrage. you're a bear, money is coming out of the stock market going into the bond market. those are the two arguments. the truth of it is, the market is a dull market. there is not much going on. people are getting a little bit edgy. i think there is little bit of money flowing into the bond market. i think you see a little bit of fear. vix is not showing a little bit of fear.

cme's joint executive chairman joins us after testifying on capitol hill. why he says high frequency trading isn't a bad thing. >>> not waiting for president obama. vermont hiking the minimum wage to the highest in the land. >>> sick of lugging your bags to the airport and paying 50 bucks each flight to check them? we have got the answer and you won't believe it. because even when they say it's not it is always about money. melissa: so new intraday high for the dow on track to close out day for another record level. economic data out today, less than thrilling. retail sales basically flat. is there any correlation between stocks and economy anymore. baron's senior editor jack hough, fox business's tracy byrnes and "wall street journal" spencer. i given up, there is no connection between the economy and stock market anymore. they're totally not correlated. am i crazy. >> i think we've gone through a period where the relationship might have reversed. it chased people out of savings into stocks. as share prices wise we hope people will feel wealthier and start

larry shover in the pits of the cme. larry what is happening with the nerves at cme? is it the beginning of something worse? >> it could be. stocks are definitely off. the action, background noise is more static right now. keep in mind the whole bond, stock, conundrum continues. this has been going on for a while. a bad trade number reinforces the awful first quarter gdp. other than that calendar is kind of light other than yellen speaking tomorrow and again on thursday. and the ukraine, at least from the perspective of stocks is keeping us between 1840 and 1880. david, to answer your question i think we're up to something big right now. trend do last longer than most of us can stay solvent. we're all saying, how can 10-year yield, 2-spot and stocks continue to stay up? we know it can not continue. it just can not. cheryl: dan, i know you like stocks long term. i know certainly you're watching. not trying to focus too much on day-to-day. what getting big earning coming in from likes of disney and group advisor and groupon. -- trip advisor and groupon. how are you feel

cme group executive chairman terry duffy was there, he testified at that hearing. we'll talk to him about whether he believes the markets are rigged, and what can be done to level the playing field. he joins us first on cnbc. see you in a moment, mr. duffy. whon a certified pre-ownedan unlimitedmercedes-benz?nty what does it mean to drive as far as you want... for up to three years and be covered? it means your odometer... is there to record the memories. during the mercedes-benz certified pre-owned sales event now through june 2nd, you'll get complimentary pre-paid maintenance and may qualify for a two-month payment credit. only at your authorized mercedes-benz dealer. >>> i also think -- let's do this. >>> oh, that was our big fight here on "power lunch" back in april, between president bill o'brien and brad katsiyama over high-frequency containing. the senate agriculture committee holding a committee on hft, and how they can ensure the market is free and fair. joining us is executive chairman and president terry duffy. he testified before that committee this mor

we'll take it to the cme we have ron heller. plus as we mentioned the cme's lincoln ellis. let me start with this, lincoln. interesting monday to see this back and forth action. >> we've seen a bit of back and forth last couple days, liz where the market is really trying to understand what is going on in terms of the globe growth numbers and what will be that next catalyst. sawing out of a couple of these large m&a activities has given the market pause to begin to understand the crisis we're seeing in the public markets are making actual prices for transactions being proposed a little bit toppy. i will say today at the close we saw some very significant bids out of the pit here. that probably bodes well for one more test of a higher number in s&p. david: mark tepper, you are a bull. but you are worried about some things, you have to if you're a serious person. one thing is inflation. food and gas is way up. i'm wondering if it will cut into retail sales figures. >> obviously when you're paying four or five bucks a gallon at pump it will hurt consumer spending and at the end

liz: we head back to larry shover from the cme. little bit of a gain for another record. >> unbelievable we're in record territory. the whole floor has been a ghost town. i'll tell you, it is fear. all these excuses, all these reasons why we can't rally continue to surface. the price action people are worried about. how much longer than the s&p 500 and russell 2000 diverge. we already talked about interest rates. they need to go higher. will china fall under a mountain load of debt? our valuations, gdp? the list goes on and on. what this tells me most people are definitely wrong about this something could be lurking but calls the fact you need to keep a balanced mind, a balanced portfolio on your position and not get spooked out of the position. david: climbing wall of worry. it happened before. thanks, larry. >> yep. david: major networks seek ad dollars during the industry's annual up fronts where they make commitments to buy ads on tv shows. which network is expected to come out on top. liz: the one who has shows that look prett

what signs on the floor of the cme that indicate to you, okay, here it comes? >> what you will start to see you will see the flow of fund coming out of equity markets. people feel they have to spend more money to get other product the. we're already seeing it with the cost of food and energy. we don't count food an energy in the inflation number. i filled up with groceries today and cost me $200. that is lot of money for average consumer to go out and spend. we're starting to see, why we've seen a big switch out of equities into some of the bond markets now. people are getting more concerned this will pop up. all of sudden we see a big jump in inflation. we're seeing in the cattle markets, grain markets. we're seeing higher prices. david: brent, look ated into for example, picking up on todd's point. it is up 2.7%, month over month. that is annual gain of 37% if it stays that high. that has to cut into the retail sector which you're in favor of. >> well, and that's true buff to look at, over the longer period. that is why they talk about the core inflation rate

bob iaccino in pits of cme. we want to start with jo ling kent and talk about this extraordinary ipo, jd.com. i was trying to describe it to somebody but kind of like overstock.com. have a whole lot of stu on the internet. they're still not making money. still not profitable. what is going on with ipo. >> still not profitable. more like amazon than and alibaba. i spoke with former coo and ceo of jdmall.com and biggest revenue generator for jd. they are inching towards profitability. how the bumps in the road could affect chinese consumer he is depending so much on, he not expect middle class that is growing outward. look at their numbers. 60% growth in revenue in early nine months of 2013. you have billions of dollars worth of merchandise volume swishing around. a lot of potential for jd.com. what does he think about alibaba? what does he think for jack ma. good time to go public in u.s. liz: we'll see in alibaba's picks the nasdaq or new york stock exchange. thank you, jo ling. we have bp earnings out right now

i also find the activity in the pits of the cme interesting. we were talking at the top of the show. he says he really believes treasuries are an opportunity. they are the play, but they weren't last year. >> we have week yield, weight balance sheets. a lot of these traders don't know what is going on right now, that is why you see such light volume despite the downturn you just talked about. all-time highs in the s&p market. these traders the plate to the uptake on the european news of germany weakening the ecb. we coul can see that carryover. liz: there is so much involvement by central banks these days. the volatility index below 12, the market is acting rather squarely but we're about to see another record high on the s&p. 20 minutes to go, do we see that record? >> very few stocks are participating in this move. a bit of improvement the last couple of days. we take a look at what is happening with yields today. i think yo historically we have seen a strong correlation following the bond yield. a little concern with the yield curve complete

i want to get chris in from the cme in on this conversation.again, very, very helpful atmosphere when it comes to stocks. we have global economy accelerating, spring fever when it comes to deals, all kinds of acquisitions, and central banks are playing along. and here we have a ten-year, 2.66%. is there any point to having most of your portfolio in treasuries right now when the flying looks pretty clear out in the sky? >> absolutely not, liz. i think the fact that we have been so range bound, we saw a little bit of risk-off situation and then all of a sudden you have these growth stocks like you had hit on and your previous guests had hit on. all of a sudden it's a little bit of a bounce. but if it stays around that 2.6 yield on the ten-year, i believe a lot of traders if there's any pullback, we could finally see a range broken. and then a lot of traders are using that as a gauge of volatility. the new vixx is really the ten-year yield here in chicago. liz: okay. and we're looking at the temperature outside, 83 degrees. it's getting hot here t

we want to head back to bob iaccino in pits of cme. bob?seeing very quiet into the close just like when i was talking to you a few minutes ago. there is not that much going on from volume per perspective and momentum perspective. i think this week played itself out. we're in a bull market. the correction if needed will come quickly. people keep powder dry an be ready to come back. tough buy dips for 2014 u. you have to be careful where you buy it. risk/reward is skewed. don't want to go long here. liz: the guy behind you wearing beats? i don't think so. those look like 1970s headphones. >> i own a red pair of beats. liz: that is cool. he is a young pup. adam: tim cook over at apple. liz: have a good weekend. thanks. >> see you guys, bob, thanks. liz: the dow closes at all-time high after quite a choppy session and sizable declines for tech plays and small caps stalledket momentum earlier this year. adam: are we getting ready for a summer bounce? this is a great question to ask. is it time to commit more money to this market? joining us russ

larry shover, alternative chief investment officer at the cme, larry, before we start with stocks, it to talk about gold because that is way down today. why? >> well, think of it this way, gold rallied 70% between 2008, 2011 and for the exact opposite reason, it's going down. economic data around the global is getting better, but today we to though the ukraine, that whole tension area is getting less tense -- bad way to put it. but really the big reason is that the normalization of u.s. monetary policy will continue to be a cross over gold's head. i'm not surprised to see gold continue to dwindle lower. i still think it's going to be $1200 by the end of the year. lori: chris, do you think that the selloff is indicative of investors having a heavier appetite for risk and that's partly why we saw an equities rally today? >> i think people are getting excited because there's really no other place to invest, we believe. fixed income yields have come down in the big part of the year. we think equities are the place to be. we're looking at new opportunities. we think that the second half i

mike gerka in the pits of the cme. mike, i want to start with you. we usually start by talking stocks but i want to talk bonds. bonds volume was extraordinary. what is going on there. >> that you highlight that i see a 2.59 print in the 10-year yield. it surprise me volume will continue to pick up as long as we see pressure in yields and rally notice markets for a reason. that is more of a head fake. something that the opposite. something looking out of park either way. we came in better than expected and for those reasons big recipient was treasury market. that is not going to end. david: mike, keep with you for a second. let me talk about yields. we saw a flattening of the yield curve. we saw yields come down a little bit on 10-year, go up a little bit on the five-year. the closer you get to that flattening the worse for the economy, right? >> absolutely. that is one of the reasons why the real estate market is getting such inquestionstive nature to come into the spring and summer months, will that be a robust market? more importantly will we flat

bill baruch from the pits of the cme. bill, began with the hillshire farms potential deal and suddenly spring fever for a lot of corporate buyouts. >> the s&p here is closing above at 1893. deal activity today into last week is really provided a lot of momentum. but what we're focused on is headlines out of china to start the week as well. they're welcoming foreign investors and lifting some of those limits starting momentum early monday. last night we were looked at fixed asset and industrial production out of china to solidify this rally. david: michael, what i like about the news out of china, instead of more government spending they're trying to stimulate the economy by opening up the market more which is much healthier way to go about it but this buying binge particularly in tech, do you see it as continuing? >> i really like -- david: michael, go ahead. >> i really like what is going on in china. they're making that market, they're attempting to make that market more investor friendly. i think combination of the chi

scott shellady from the pits of the cme. good to see scott. nicole petallides back with us. talk about apple for a second. it kind of typified what happened today. first it was way up. it then came way down and basically it was flat. why all the indecision in the market today? >> i'm not surprised to see the back and forth action. that is really what we've seen all year long. to see volatility over unchanged line or what we saw with apple. we saw it making new intraday highs we haven't seen since 2012. to see it pull back to test the highs, test that resistance and take a breather, only to test it again. what we've seen on apple, dave and liz, it has broken. it went from 605 to 615, 25 and now we're in the 630 range. i think we saw it above 640 today. i didn't write down high of the day but it sent a new intraday record that dates back to 2012. liz: since the beginning of the year, mark, we've seen stocks often volatile. i pick out gamestop because the ceo was on last hour to speak exclusively with us, they march, percentage point, by per percentage point higher and people f

let's get to the floor show, find out what's at the forefront of their thinking, traders at the cme,ex, and our lauren simonetti at the new york stock exchange. kevin craney at the cme, to see more than 60 attempts to cross that unchanged line, why the indecisiveness of the markets today? >> we had a big pullback yesterday, and i think some people are taking advantage of that and looking at it as a buying opportunity. but it is a light friday, so i don't think you're seeing volume come in as much, and there's certainly not a lot of momentum in either direction at this point. but i think traders are more concerned about where are we headed in the global economic perspective, and really we're muddling through. we saw some numbers really throughout the week that were mixed both out of the unite, europe -- united states, europe, asia, so we're trying to figure out what is the global economic growth picture going to look like, and what in direction are we going to move from an equity -- liz: and very few answers to that question, so proceed as you feel, you believe that things might be ge

let's go back to brian battle in the pits of the cme a lot of action.o tell what will happen tomorrow, brian? >> feels like continue ages of the trend last week. we had spike with the momentum and we're up a couple here today. this will be more of this price discovery tomorrow because there is nothing really to drive us higher. david: brian, thank you so much. come back to see us again. appreciate night will do. cheryl: the berkshire hathaway meeting may be over but warren buffett's long-time partner charlie monger is still making headlines. over the weekend monger said this, activist investors are not good for america. david: but investors put about $30 billion into event-driven fund last year. the category that includes activists. that has a lot of folks asking, are activist investors really all that bad? joining us christopher davis, klein berg wolf, cohen partner and investor activism group chair. you obviously think they're good for economy, good for america. you disagree with monger. talk about one case in front of you. talk about apple. i happen

bob iaccino from pits of cme. let's talk about whether this is bump in the road, bob or whether it's something bigger than that. what does it feel like to you? >> well as it sits right now it feels like something bigger than that and a lot of it goes back to your conversation with nicole. the volume all on the downside was very good. we vane seen a lot of volume to the upside. it kind of makes sense. the market has been moving sideways. people talking about this potentially being a sideways type correction. to me this is still a bull market we need to see. the correction crowd is growing. it is not going away. february lows, asset allocators, traders everybody one he welcome that. eight to 10% in the s&p no one will complain about that move if it rallies from there which i think it will. liz: you have a delicate balance, kimberly with all of this coming at us. you're calling this second quarter dassault lay type of market where you have to do that balancings ability. >> there is slew of data. 1/2 ghaith the market

just saying no cme because we don't have the camera just yet. we sure have jason pride, glenmede director of investment strategy to tell investors how to hedge downside risk. we have january r john maxim from beak can capital management partner saying investors need a 21st century portfolio. i hope so. we're already in the 21st century, john. define that at a time we're seeing major volatility not just day-to-day but from hour-to-hour? >> well, i mean, thanks for having me on the show. what we mean by 21st century portfolios we're still dealing clients unfortunately, in our firm we deal with a lot of retirees still working with brokers. liz: can i interrupt you? we're getting cvs earnings. hold on, john, one second. adam shapiro, how did cvs do. >> beat on earnings per share. street was expecting 74 cents. they just missed on revenue, 3.86 billion. the street was expecting 3.91 billion, liz. liz: thank you very much, on cvs. we're checking numbers right now. looks like they're flat at the moment -- cbs. no real surprises when it comes to trading

let's go back to phillip streible in the pits of the cme.shaping up to be like last week? >> if you look where we're at 1875. so looks like they drove it up there for the option expiration. since it was driven up there i'm fairly confident on monday we'll start monday a little softer and work back down to the 1860s where we were trading most of the day. we have very little economic data coming out on monday. very little support for anything positive at all. keep an eye on the lookout. look for a little bit after slide down. david: phil streible, good to see you. have a good weekend, thanks. liz: housing starts. yesterday we got terrible housing sentiment. david: up and down. liz: amazing house numbers soaring 13% in the month of april as building permits jumped to a near six-year high. this is echoing from some industries biggest players. here is steve hilton, meritage ceo and what he had to say about yesterday's disappointings home sales number. >> i have no idea where they got the number. certainly not how we're feeling out here. our busin

going to the cme, to see a yield for the ten-year at 2.61%, suddenly what happened here?t happened to not be watching treasuries today. we were at 2.66% just two days ago. is this the retail sales number that came in weak and scared people? >> yes. retail sales played a big part in this. the market is at all-time highs in the s&p, but really when china data last night the fixed income investment, industrial production, that was definitely a disappointment to not beat expectations. and we're starting to see a little bit of a risk-off trade at these levels and moving into treasuries. liz: yeah. but to see techs do so well yesterday and then today not so much, the social media names kind of wavering, again, this makes people wonder what happens if there's one scary headline that comes out and spooks the horses? >> well, i think it could get pretty ugly really quick. but the fact is that until something dramatically changes, liz, on the landscape -- and that's going to be fed monetary policy or something really unexpected -- i think the lines of least resistance continue to b

let's check interest rates with rick santelli at the cme. ricky?e, here we hover maybe a basis point or two than we settled yesterday at 255. as you see on the intraday chart. but all things consider, kind of in holiday mode. and remember, if we look at a chart starting in november of last year, this really says it all. see that spike right on the left side of the chart? that's a 3.03 yield. we're 50 basis points lower. we're about at the exact same place we were at the end of last year with stocks. which is the reason we enjoyed michelle and steve's debate so much. the market weighs in, it didn't make anything in stocks so far this year, but you've made a bundle especially in total return. 30-year bond in total return, about 10.5%. back to you. >> thank you very much. >>> ebay saying 145 million users records have been breached make being this one of the biggest data breaches in u.s. history. cnbc.com consumer reporter kelly grant is here now. kelly, what are the details on this data breach and what is ebay suggesting people do? >> the really big

joining us for traders unplugged from the floor of cme group.. alan knuckman and scott shellady.. ready to jump into the ring to take on hot topics. good morning, round number 1 russel russel the small cap index remains nearly 10 percent off its highs. what is that telling traders and investors? alan: well i'm always a fan of distressed sectors and this is 10% off holding its pivot that we've seen the last six months. i'm looking for a comeback believe it or not we just made all time highs in the s&p and the dow. scott: well you know i'd like to say to everybody out there that stocks are allowed to go down. they don't always have to go up. it was up 33% last year or something like that so a little bit of a pullback and even if it's 10 percent... alan: so you're a buyer? scott: i still think it's ok and for this year i am. i'm not saying for the rest of the years but for this year we're going to see eight to 10% on the stock market regardless of what happens this week, but i think it ultimately-- free money globally keep the stock market big. alan: russell doubled the value from 60

joining us from the floor of cme group, alan knuckman and shellady ready to throw down their trader thoughtsolitics... only one stock in the dow has not contributed to the clinton family in some way including projects that help haitian earthquake victims. which blue chip do you like? alan: a little spin of politics, i like all the blue chips as you are probably going to know, but only 12 of them right now are negative on the year so i think there's a lot of opportunity. i especially like goldman sachs here in these levels. obviously they're in the financial business so i think there's money to be made, but i do want to state that politics is money. money is politics. scott: talking about politics, in a failed effort not to release my persuasion, i'm going to go with the only one that did not give money to the clintons, unh, it looks like it's in an uptrend... alan: trade with your head not your heart! scott: it looks like it's in that trend to channel right now. if it goes below 73 i don't like it, but right now it's still in a technical upswing and i'd stick with that one. unh, the only one

from the floor of cme group-- alan knuckman and scott shellady up close and personal and ready to gow rounds... good morning and round number one: ceo pay raise. median ceo pay reaches $10 million per year. what company would you invest in that pays its ceo just $1? alan: well there's only a handful and they do that obviously for symbolism here. they still get stock bonuses. the one i like is whole foods. whole foods is-- nothing is on sale at whole foods. it's gone from $60 down to $38. i like that. that guy doesn't even take stock options just $1. scott: i think allen would like to invest in the government so they could regulate all the ceos pay because that would make him happy but i would rather stick with innovators like carl icahn, sergio brena and larry page... alan: 257 times the average wage of their employers. scott: it's the most democratic thing you could do. don't buy their stock if you don't like it. how about that? it's the democracy which you fight for so much just don't buy the stock! alan: that's up from 190 times the increase is bigger 10% last year alone... scott:

joining us with his thoughts, ben lichtenstein, live from the cme. always good to see you. good morning. >> what's the number if we don't get we'll be disappointed? >> well, the disappointed number would be anything below the 177 level, 150 level. again, we need to see something in the 200 level to see anything with any real umph, if you will. that will be the first time we've seen 200,000 plus for 2014. this market right now is really just kind of hanging here, waiting. there's been so much information this week for the market to digest in terms of data and earnings. economic releases. this is really just the cherry on the top, if you will, right now. but this market has had a lot to digest in terms of information. for the most part if you look at the s&ps, going into the close yesterday, very well bid. not on the all-time highs but just a matter of a couple handles off for the most part. the real thing to keep an eye on here today in the coming couple weeks is how the nasdaq and the russell handle this situation that they're in right now. we're seeing a major divergence d

we'll be over at the cme, next. mine was earned in korea in 1953. afghanistan, in 2009.ncer ] once it's earned, usaa auto insurance is often handed down from generation to generation. because it offers a superior level of protection. and because usaa's commitment to serve current and former military members and their families is without equal. begin your legacy. get an auto insurance quote. usaa. we know what it means to serve. >>> ahead of the u.s. open, the european equities are lower. the london market is closed today for the beginning of may bank holiday. is cac is down 1.2% with the ftse down 1.3 and the micex is down .60%. those are the lowest points for the session today. on the agenda in the states, april services index out at 10:00 eastern with the forecaster with a full point for march. later this week much of the focus is on washington as fed chair janet yellin testifies twice before congress about the u.s. economy. first up on wednesday and then secondly on thursday. as for today's earnings, look for numbers before the open from pfiz pfizer, sysco and tyson f

at the new york stock exchange, the cme group and the nymex.she has been known to step over her words to say it politely. they are still considered on the floor she may speak tomorrow. >> i think largely the market has run its course in the near-term. showing signs of pulling back. the dow and the s&p are showing more and more signs of joining the russell still down 7% below its peak. small cap weakness, difficulty in some of these internet tech stocks bottoming out hitting new lows. lot of the high data trade. people are wondering the same levels we have been at since march. the dollar now starting to hit new lows against the euro and back into the yen, so the dollar hihitting the lowest levels sine 2012. that is a concern to some people thinking our recovery has gotten more and more anemic. signs the economy in europe, the spanish and italian bond yields are hitting 2005 lows yet our economy is still struggling. cheryl: we have some weakness. you know what, philip. we are now rounding out earnings season in particular 8% of the s&p 500 is now

we'll talk to somebody at the cme in a moment what that means. "after the bell" starts right now.avid: we have a jam-packed hour for you on "after the bell," including a

let's get to the floor show, traders at the new york stock exchange, cme group and the nymex.re is a diversion between the dow and the s&p and the nasdaq. earlier today it went below the 50 day moving average but it bounced back. >> for the s&p, what you cited on your opening comments is the divergence between the nasdaq and the s&p and the dial, but look closely at the russell 2000. that is the one that worries me the most. that is a warning shot the equities. they have not participated in this rally. the fact the small caps are not getting in and struggling again today. liz: it is disconcerting for a lot of market experts that while we have a pretty decent rally the last couple of weeks, the russell has not participated. people are still too scared to get in, now they may start pouring in as it is too late and yet we still don't see great numbers for the treasuries. there was an auction of 10 years, right? >> right. this is the tale of two cities. bonds rallying as well as stocks trying to rally. real disposable income since the election was declared over, up 108% from wall

it is an important distinction, markets, one that cme group is trying to make. futures and equity market are very different things. a lot of explaining for lawmakers as they attempt to get their heads around this issue. >> any sense that lawmakers are preparing a move on a bill to address the markets concerns? >> i now it seems like more of a wait and see approach. they want to know at the cftc is going to move. they are pressuring other regulators to take a look. from a legislative perspective, you hear lawmakers voiced their concern, but i think we are a ways away for any kind of bill to move forward on this. at least a couple hearings before we get any sense of whether or not they are moving to take that step. >> phil mattingly, thank you. let's turn to politics. democrats are facing a big problem this election season -- who to run against. in the past few election cycles, we have heard president obama rail against corporate interests, slamming wall street as a bunch of fatcats and calling oil companies greedy. >> you cannot overcome the special interests and

ben is the president of the trade of reuters.com on the floor of the cme. good to see you.ajor indices with the fed information out wednesday, but we hit record highs. treasury yields are down to six-month lows, how does it play out from here? >> well, what we're seeing is an interesting development as you mentioned. we have the s&p so far set for open right now to the downside, but really not below any major levels of support, if you will. we are still holding in range on friday, but the continuation of the weakness for the most part that we saw last week. the weakness is limited after an all-time new high last week. i think it was wednesday, which was unsustainable. we didn't see follow-through and saw cell-side activity on thursday, but really what's playing out as i mentioned is very interesting in that you have the nasdaq unwilling to participate with the broader based market rally that we are seeing in the s&ps and the dow. so which way is this going to resolve? at this point, it is anyone's guess, but we have very light schedules in terms of economic data scheduled f

the traders at the new york stock exchange, cme and the nymex. if there is fear in the market, a move into treasuries, that is what we saw yesterday too. >> you stole my thunder. bonds are not my thing, but we look at the 10-year treasury yield, so the question becomes why is the 10-year treasury yield not moving when we get the ppi data stronger-than-expected. a bit of a troubling sign. people are really concerned about growth in this market. therefore you have to be concerned of valuations. price to sales ratio is at all-time high. when you look at valuation, the market cap going forward, we don't believe the markets doesn't believe the growth story in the economy going forward therefore the valuation will be too high. liz: this market vindicating the bears are about to have a win. marketwatch in this building at fox, it says stocks are telling you a bear market is coming. are they? is that the signal we look for on that? >> there are a lot of other things we look at that we have gotten smarter about: direction on the market. we are still bulli

thank you, steve liesman. >>> let's get to the cme group. the dow is up 78.y, rick. >> hi, carl. you know, as i try to pay attention to as much of the qe and get my producer to get me transcripts of the qe and pay attention to central banking with regard to not only yellen and the u.s. but what's going on overseas. we talked to mr. trichet today. it seems as though the central banking community isn't really being forthright with us on a number of issues. whether it's targeting currencies. now, i know there's not a direct targeting of currency, but there are policies in place where currencies are deemed to be better for an economy if they're weaker versus stronger. think of exports and who has the biggest exports economy, mostly in europe, but the u.s. would like a bigger piece of the action, as well. let's take it a step further. as for questions regarding issues that one of the biggest problems that janet yellen sees is that she's just not communicating correctly, that there's not enough transparency into what she's trying to do. as logical as that may sound

we're live on the on the floor of the cme. if you're looking at interest rates, they've been moving lower, but let's hit the highlights. going back a year. last chart, these weak. 13-month high. i know there's a lot of people who want to make ukraine a big financial issue, but exports of wheat is a big deal. >> thank you very much. >>> an indiana man who has the first case of mers is expected, a hospital worker was discovered to have the vile illness on friday. meg, what do we need to know about this middle eastern respiratory system. >> as the cdc told us on friday, it's now in our heartland. this was the first u.s. patient with mers identified. he had been traveling overseas. >> mostly in saudi arabia. >> and that's where he had been traveling. he was a health ware working and in a health care setting there. actual doesn't seem to be contagious in the community setting, really in the hospital or in the home. >> what is the level of incident and level of fatality? >> that's important. right now the w.h.o. has confirmed about

mac a nice rebound in stocks, larry chauffeur at the cme what is driving the outrage today? obsession with monthly indicators. we had decent p.m. is, existing home sales a big plus. home sales dropped 13% from the peak in july to march so up today, initial claims are stable, leading to higher yields and moderate recovery in small-cap stocks. right now all is well in the world behind my back. melissa: what is the next thing you're looking for? >> i am looking for pending home sales which is next week. that is a good indicator of our next existing home sales number normally least by two to three months. i want to see the housing market recover. melissa: thanks so much. the housing market regaining a little bit of it flooding. new data shows existing homes sales were up 1.3%, below what wall street was expecting but more potential home buyers, veronica is back with me with douglas's ceo land bank rate senior analyst greg mcbride. what did you think of existing home numbers? >> they are ok, they could be better. we expected them to be higher. we had bad weather so we pushed the

let's go to larry at the cme. larry, no one cares gdp contracted in the first quarter?you believe it? despite a terrible gdp number, despite a lackluster pending home number. nobody seems to care. melissa, the bottom line is everybody is looking for june 5, the ecb meeting and june 6 which is the jobs number. our numbers are okay, people basically expecting gdp number to fall flat. fall almost 1%. pmi is good, everybody is waiting for next week. melissa: thank you so much. the virtual currency will soon be accepted by dish network. the latest on this one. >> they will start accepting bitcoin payment july 1c can pay for your monthly bill. looking at the numbers, 40 million paid subscribers right now but only 600,000 people actually use point-based wallet. what they really think they do is pay for the wallet. a small minority. the first two months they had a surplus of $1 million worth of volume transmitted through the website of people buying stuff so it is becoming more and more mainstream. other companies we are looking at, tesla and others. it is interesting. >> all t

we've got traders standing by at the floor show, the new york stock exchange, the cme group and the nymexn willis, you know, certainly we had a lot of volatility. i know volume is on the light side, but are we just now kind of digesting all the big data news we had last week? >> i think what we're seeing is we are seeing lighter volume, about 10% below monday for the last quarter, but we are seeing the push and the pull of a marketplace trying to decide how to price a slowing down of the world leader of the chinese economy. we're seeing that continue to decelerate. it's still growing but not as quickly as we'd like. the european union gave us ay tn lore, suggesting that their growth is nowhere near what we had hoped we needed it to be. then we came into the united states, we were down 135 points op the dow jones industrial average, and we saw the markets turn and head higher because we need to price in the fact the united states is, in fact, having an improving economy as judged by our ism and pmi numbers. so that was the whip saw you saw. the fact of the matter is at this point the world

we want to go to the cme. what is driving this? >> i think it is a larger overall asset increase.encouraged by what happened in stocks and the way the market fought back after the big dip we had the last couple of days. it is driving crude oil. crude oil is at month highs. if we get above 105, a breakout to 112. i am very encouraged. it has been trading between 24, 28. the risk is $2 to make $4 on energy play. it has been leading the way on the up, up. >> thank you very much. michael steinberg is headed to three and half years of prison for insider trading. a lot less of what the prosecution needs. the law professor, i will start with you, elizabeth. three and half years i think is too light. what do you say? >> i agree with you, that is outstanding. it will serve one and change. that is not much of a deterrent for anybody who made it millions and millions of dollars. >> he didn't make millions and millions. >> he made a relatively small amount. he probably could have stuck around even longer. >> you have to go by the facts and circumstances of this case. this is why the weakest t

rick santelli is the man with the mojo at the cme. hi, rick.ures have closed in trading for everything that doesn't have equities in it. foreign exchanges, treasuries. as you look at the intraday chart, cash mart is open for another 25 minutes. we see yields are down, despite the fact that the we canity markets are up a bit. month to date, this is fascinating, as we sit here at the 253 yield, remember or low yield closed was a week ago thursday at 249. since then, this looks to be the sixth close in a row that is in between a yield of 251 and 255. tight range. if we look at a two day of the euro versus the dollar, it's hovering just above 136. these are the lowest yields in over three months. this is very important to contemplate, as we see the june 5th ecb meeting looking to keep a weaker euro, and of course the elections for the european parliamentary group will be fully completed by monday so when we come back on tuesday we'll have a much better idea. tyler, sue, back to you. >> thank you, rick, have a great long weekend. >>> in the fall of

the wing, the dow mark newton, at the stock exchange, larry chauffeur at the cme. is everyone's looking for? >> stocks following in bond yields over the last day. we have seen 2.6 and they start to pull back a bit. they move in opposite directions but all of a sudden stocks and bonds moved in unison. and this is not nearly what we wanted. it is a little bit of the concern. liz: they agree with that? larry, come back to you. >> for me i am disconcerted, 260, for us to rally a continuation of this rally we see a ten year yield, 275, 285, the biggest thing i am worried about is the ten year yield especially seeing that yield curve steepened. behind me what people are worried about, trapped his win 1840 and 1880 in the s and p. relieve that battle lurking beneath the surface between value stocks and momentum stocks. melissa: it is did they face book grew up, mark zuckerberg leaving it behind and taking the stage with a new, loving attitude. back now charlie gasparino with the wall street journal. you have to look closely but from appearance you're looking at a guy who

rick santelli is at the cme group in chicago. hey, rick. >> good morning, carl.hot hot inflation data and yields going down down down. how counterintuitive is that. that's what happens when you go down the central bank rabbit holes around the world. the bank of england thinking they're going to keep rates low longer than many anticipated. the ecb trying to figure out ways to move interest rates down. like it's done a whole lot to help things like housing in this country. as you look at the comps going back down the curve, let's do a chart of april, for 2s and 5s, we haven't had closing yields in this area since roughly about the middle of april, look towards 10s, we'll move that chart back towards november of last year, because we are toying, yes, we are toying with that elusive close under 2.57 from february 3rd that will shift the comp back to halloween of last year. if we really want to pay attention to what's going on, we need to look at the price of other sovereigns, whether you look at the french versus our ten-year at minus 75, there's 75 basis points lowe

check the declines with this cme with more on this one, looking ugly on that board. >> absolutely.ve been weak. the weakest stocks in the market over the past month, we saw future reversal in the broader market opening much lower and a lot of stocks came back but momentum stocks continue to remain depressed. we have seen a lot of money come out of this space and rotating to bigger caps, less volatile names and traders are positioning themselves for the summer going forward and headline risk out of ukraine and and and shore environment for interest rates. melissa: is their opportunity in any of these stocks that getting hammered? is any one of them a good one? >> we have seen expectations of ali baba's idea, action traders are very bullish. that put 3-1 of the the past two weeks, traders definitely expect to come up on yahoo!. melissa: thanks so much. all eyes on the electric carmaker that has tesla shares falling just hours from now. for all of elon musk at star power the company is facing concerns from stagnant domestic sales to the drying up of government subsidies, here is jo li

rick santelli is at the cme. >> same as yesterday. we gave it a charlie plus. c plus. i'll tell you why. first of all, remember, we've added strong rally, what's everybody been talking about today? the drop in yields, rise in prices. 35 billion finds price to the yield of 1.513. the big side was 1.51, so we tailed three basis points. we take something away for that. 2.73 good to cover close to the ten auction average. the 50.4 indirect, close, a little stronger than ten auction average, but we see a deficient 10.5 on direct and we see dealers with 39.1, which is a good thing, but the pricing, didn't really like it. could have gone b minus, but we have to seven-year note to look forward to and remember, a lot of buying going on in treasuries probably zapped a bit of the demand today in the five-year. >> thank you. >> a wild day for smith and -- that striker would make it big for the medical device maker. it rose again when welz fargo said it may make it big. so you got this back. trading up, striker up as well, although off of its highs from yesterday. again, medical de

dave: let me just go to cme for one second. todd, looking at those numbers, good or bad? >> i think they are great. i'm happy for john chambers. they will do their best. they have a lot of headwind in front of them. i think ther there's a lot of competition but i'm happy for cisco because that is a great bellwether. maybe things could be turning around because they are major player. if they will beat on top and bottom, i am happy for them. liz: non-cap $0.51 per share. revenue also a beat at 11.55 billion, exultation than .36 billion did let us bring it to delve into the numbers first on fox business, john chambers. chairman and ceo their first on fox business interview. you had real problems with all kinds of issues with her it europe waning in all kinds of other problems, looks like like things are looking better. give us a sense of what surprises you the most in a good way about these numbers. >> first as todd and others have said we beat almost every category. 200 million above expectations on revenues. gross margins were very good. a lot of people had concerns of the

to rick santelli out in chicago at the cme. hi, rick.e're seeing a smidge, just a smidge of steepening today, with 2, 3 and 5-year yields a bit below, just several base points below where they settled. as you look at the intraday it's virtually unchanged. open that up, we're hovering at ten-month low yields. yes, i know we had 249 sentiment, we're at 251. we'll call it a zone. let's open a chart up on bund yields for one year, almost precisely to the day one years since they've been in the low 130s zone. the last chart is the dollar/yen. we've been on and on about how it correlates to ten-year rates. a sentiment we haven't seen since early february. >>> thank you very much, rick. all right. let's look at shares of pfizer and astrazeneca. right now pfizer shares up a full percent, astrazeneca is down 11.5%. the british drug maker rejected a sweetened and final takeover bid that valued the company at $118 billion. extra would present significant risks for shareholders, end quote. pfizer had hoped to create the world's largest company, but

let's go back to larry shover in the pits of cme.at are you seeing for friday. >> i sound like a broken record. the market seems quite content to remain between 1840 and 1880 with a couple of exceptions. right now non-farm payroll number tomorrow doesn't appear to be a big deal. we'll see either below 150 or above 250 to change the narrative. what is worried traders is yield curve. 10-year is very cheap, somewhere in the 2.60 range. if we continue rally we need growth an inflation and 10-year yield, 2.57, 2.80. that is not happening. that is very discon gettering to -- disconcerting to traders behind me. david: you don't want to see the yield curve invert. thank you, larry. cheryl: we brought you linkedin earnings a few moments ago. david: we have the robert from suntrust robinson, has a $260 price target on linkedin. robert, our eyes popped when we saw that. that is close to its all-time high. it is trading -- cheryl: 160 and change. it is about 1 off. so it has come up a little bit. it fell down after earnings came out. why are you

james romelli is at cme with more on this one. why are we fading? >> right.ing off the highs a little bit here. i don't think it has too much to do with the minutes. there wasn't really any bombshells or anything we didn't expect in those minutes but we're trading at a key resistance level in the s&p futures. we made new highs in the past week. we spent most of time between 1660 and 1880. no more data this week and shortened week next week, the vix is approaching 12. i think markets are expecting choppy price action for next couple weeks here. melissa: james, thank you so much. a news alert. pictures from the white house as the president obama honors the super bowl champion seattle seahawks. this comes after the team's 43-8 victory over the denver broncos in super bowl xlviii. at same moment he is doing that you can bet that vladmir putin is thumping his infamous bare chest today. russia's president, successfully signing a $400 billion gas deal with china. this is aggressive shift of commercial interests east amid sanctions from the u.s. and europe over ukrai

what i think the cme would do is go after other potential-- i mean, terry duffy is sitting on lots ofdo something with the cash and from what i understand he met with bankers earlier this week. as you know he's frugal. he's not exactly a guy that spends money on everything. he runs good business. he is thinking in terms of accusations. liz: i feel badly for him that he's a blackhawks fan and i'm a kings fan. because they will beat the blackhawks. charlie: i thought you were going to say you feel badly because he's a billionaire. [laughter] liz: i don't feel bad for them. charlie gasparino. we have the bell ringing in 206 minutes. if you took our next guest advice the last time he was on you would have two, not one but two in your portfolio that each rose more than 50%. one of them rose 60%. could a wood have it should have, right? april home sales data failed to jump as much as analysts expected, but could the housing recovery be just on the rest of us of getting really strong? heating up we have the man with a window into the homebuyers soul and the home sellers, glenn kelman is the

but go to bill burke at the cme. how are we feeling as we finish the week? we are mixed all little lower here. obviously headlines from hedge fund managers has investors on their tiptoes but we are looking to fill in the dip mentality where we could be a little more relaxed for investors and the same levels we have seen over the last month. melissa: what is the next big event you are looking for next week? >> manufacturing data to china as well as out of europe and biking european gdp had something to do with selling from the high level so definitely paying attention to that. melissa: thanks so much. president obama's former top economic adviser larry summers making lots of waves in las vegas. charlie gasparino in the conference, look, you can see him. you are not on the phone, you are alive and in person. definitely can. >> i have makeup on. melissa: what did larry summers say? >> an interesting address with the guy who runs the conference, head of skybridge, happy he is a brilliant guy. anthony went to harvard law. larry summers was the chancellor of harva