david: david kudlow, while vix was going up, interest rates were not going up. we still had the interest rate spike 3% on the 10-year. then it came down to 2.8, 2.9 and it has been in that range for about the past month. as long as that doesn't go much above the 3% mark a lot of investors feel comfortable. do you? >> we do feel comfortable. certainly where interest rates are now. we feel comfortable for stocks. we think that bond have a more troubling future ahead of them. but as long as rates are only moving up at a steady pace and accompanied by stronger economic growth, ann we saw some of that improved retail sales this week. strong industrial production number, we're seeing strength in the economy. as long that accompanies higher rates, don't move up too quickly, stocks do well, interest rate sensitive bonds will have problems. liz: interest rate sensitive bond. are all bond slightly interest -@rate. will you pick a certain end of the curve? >> there is very good question. and exactly where we focused in the past six or seven months, as we continue into 2014

joining us in our "the closing bell" exchange is ra beck that patterson, david kudlow from mainstay capital management, rob morgan from fulcrum securities, and chris retzler. rebecca, let's start with you. when the bell rang on december 31 and we moved into 2014, it just felt like something changed, didn't it to you as well? >> no, it's been a very frustrating start to the year, especially for equities, and i think in periods like this -- today certainly feels better. periods like this, it's always going to take a step back and say has something fundamentally changed? has my thesis changed or is this just consolidation? at the end of the day i think it was just consolidation. i'm still very optimistic about equities this year. the data is still moving in the right direction. look at today. small business sentiment better. retail sales okay. data out of europe and japan both better than expected. so the fundamentals are telling us that this was just a lull, nothing is broken. >> rob morgan, alcoa missed and shares were hit on that report, but what about jpmorgan and wells here? kind of a dec

joining us now is rebecca paterson david kudlow anthony chan from chase, and kenny from o'neill securities. our own rick santelli is along as well. kenny, to you first. how does it feel down here after the carnage late friday afternoon? >> you know the carnage, let's not overdo it it wasn't carnage in the sense it was a bloodbath. there was a reassessment. today we've had this 20-point swing in the s&p. now we're rallying back. 1788 yshish is a level where it wants to find support. you can feel them wanting to push it back there and try to close it at that level today. but by no means do i think this correction is over at all. i think there's more to come. i think no matter what apple does tonight apple is just one company. i think there's bigger issues that the market has to deal with. >> and we want to hold this thought for one second. do you have any or news on the herbalife story you mentioned moments ago? that stock, of course moving higher by 69%. >> there was some news i delivered that tim ramey the analyst who was wall street's biggest bull on herbalife was leaving it. it looks lik

. >> david kudlow what do you like into 2014? nervous? >> i'm not nervous about the stock market maybe not as nervous as others are. we think we'll have reasonable earnings growth with revenue growing 4%, 5% after being flat this year. you know that bodes well for earnings and the opportunity for multiple expansion. and the economy is improving. we expect significant improvement in the economy next year. that takes us to industrials and other cyclicals. the cap ex, we expect that globally companies will be spending -- will have capital expenditures so the cap ex cycle we've been waiting for will -- >> and keep waiting. >> and keep waiting and keep waiting. but we think that finally comes in 2014. and that will help the tech stocks and some of the other capital expenditure, those beneficiaries of cap ex cycle. >> today's interesting microcosm or a test of that thesis because financials are doing well and yet technology, again, if you look across the nasdaq the last couple of sessions is really under pressure. what's going on, david? >> wel