thank you, larry shover in chicago. you can see the markets seem to love today's testimony by new federal reserve chair janet yellen. to understand why you have to read between the lines of her testimony which is exactly what our next guests have been spending their professional life doing. jon hilsenrath, "wall street journal" chief economics correspondent. john tannenbaum, northern trust chief economist and former chicago fed senior vice president and head of the risk division. gentlemen, thanks for coming out. jon what is the headline for today's testimony? >> the headline doesn't require reading between the lines because janet yellen said it at very bin beginning of six hours of testimony. david: thanks for ruining my setup, jon. there is some reading between the lines. you always do that. >> sorry about that. continuity. she said she is continuing ben bernanke's policies. what that means, short-term interest rates stay near zero into 2015. the fed keeps pulling back on the bond-buying program unless something rad c

larry shover from the pits of cme. larry, are you a believer in this market? seems we're divided more than ever for those that say we'll continue to go up 10% and those at that say expect another correction. >> i do not expect another correction. in fact i am a believer. my end target for the year is. we're eye guessing -- digesting. traders want to know how we negotiate the 1850 space, very, very important. keep in mind to have a 10% correction in the market we need to so some type of stretched valuations which we clearly do not have or a macroevent which i don't see in the cards right now. liz: craig, you like the small cap space. small and mid-caps which are performers. how long does this continue? where is the most attractive part of it right now? >> you know the nice thing about small caps,, i feel like there are always opportunities there. at hodges capital we have more ideas than money. we have new opportunities and thing about small caps in slow growth environments companies look for new growth vehicles. we have several companies just this year get bou

larry shover on the floor of pits. larry, start with you. is this a -- is this a time to -- >> i don't know -- david: that's why we hire you. >> we have emerging markets today. economic data was very soothing. earnings that came out with fairly decent today. but theebest thing was retail. retail stocks have been a complete washout all year long. we saw a really nice rally in the retail sector this is definitely probably a buyer bull rally. nobody seems to know. is run by confusion, position and technicals right now. liz: i don't know. sandy, lincoln doesn't look confused. >> thank you. >> come to this conversation. you're a salty market dog when it comes to the market action. tell what you're advising your clients to do right now. >> that is interesting point you just led with. people got all concerned, it was understandable. weaker numbers on china and connect the dots to argentina and turkey. liz: sandy, two or three days ago, just miss ad big move to the upside here. >> that's exactly right. monday of this week recently as this we connect

let's go to larry shover. how are they looking, larry?we rallied 6% the last nine trading days the million dollar question is where do we to from here? seems vaguely familiar, 2013, in that the pain trades continue to be going higher. it will not be easy. we'll have fits and starts. we'll be grinding higher doesn't mean we can't be and shouldn't be vigilant. there can and will be changes in the market that might change sentiment but for now the pain trade seems to be on the upside. david: larry shover. thank you very much. liz: he has been called the chuck norris of big pharma and with good reason. after turning around bausch & lomb before selling it to val ant pharmaceuticals, brent saunders, he is only 43, we hate him, completed another huge deal just months after becoming the ceo of forest labs. acts at that voice from dublin just bought forest labs. where does he and the company go here. he joins us with a fox business exclusive. just two weeks ago you were talking about how you forest labs which was -- >> 9. liz: 2.9 billion doll com

different models manufactured betwen 20-09 and and 20-13 time now to get some commentary coming from larry shover of sfg alternativeshe's watching the market for us today. good morning larry. >>good morning. >>was yesterday's rally mostly about janet yellen and her comments to the lawmakers on capitol hill? >>i think a combination of both of them really did help the market yesterday. keep in mind that people didn't realize or didn't know if yellen was going to carry the baton for bernanke and she sure delivered with a great q & a yesterday. >>she absolutely did. and what about the gold bounce? what's behind the gold rally? >>part of that just might be that we were in a deeply oversold condition. secondly, we are seeing a slow down in growth which is a little bit more dovish from central bankshence we're gonna see a pop in the gold price. >>and in the earnings checkhow well do you think earnings are coming in? >>i think earnings are coming in great 76% have beaten by 5%--that's quite a bit. however, traders need more right now because they might be long but they're not necessarily bullish. so even

larry shover of sfg alternatives joins us now on this jobs friday. with jobs in focus, what is the market trying to signal here about the job market? >>i think the market right now is saying we don't need a big beat. what we don't need is something like we saw last month. we also need to see a revision from december that was so paltry. so i think that somewhere in the range of $175 with a revision to 150 from december would make everybody really happy. >>agreed. what about the rally yesterday? what was behind that huge move? >>i think a lot of it is just emerging marketsthe currencies rallied against the u.s. dollar. our economic data that came out yesterday in the adp reportism non-manufacturing were soothing to the markets and earnings were pretty good. last ofall, the retail stocksthey were a washout and most of them rallied yesterday. >>let's talk about olympic sized investing. is there any way you are playing the olympic games and what about the bricks? russia is in that area. are the emerging markets a place to park money? >>emerging markets ar

trader larry shover of sfg alternatives joins us now on this wednesday, and larry, why is the s&p struggling with getting over this 1850 mark? > > you know it reminds me of 1650 of last year and even 1350. at this point 1850 is going to require growth metrics to get past that level. it's not like last year where the market rallied before the data set so we need growth metrics to prove that we deserve to be above that level. > > let's move over to the commodity sector and oats are at a high because there's not enough space on trains. oil is taking too much of the space. what's happening here with oats and oil, larry? > > yeah oats is at an all-time high-- a 10 year high over corn. a lot of it does have to do with transportation-- you're right-- just pulling gas down and crude oil down from the upper midwest. it's compromising getting the oats to market but also the winter has been tough too-- the snow cover has been very very hard and the supply hasn't been that great. > > and now over to hollywood where dreamworks came out with their earnings after the close in the stock fell about 6%. what

larry shover joins us on this wednesday morning. there has been an economic chill that has been running through the market. what do you anticipate for the housing numbers coming out today? >>just more of the same. and it seems like right now the investors are giving the economy the benefit of the doubt just given the horrible weather we've seen east of the mississippi. i know it's getting to be an old story but it's true. yesterday we had two bad numbers come out and the market just shrugged it's shoulders and continued to shrug higher. >>gold is making gains. is that a safe haven play or is something more happening? >>right now i think it's a lot of short covering. we've seen that since the very beginning of januaryjust on some of the unknowns. especially with the fed chair changing overis tapering really going to happen. and the slow down in data and emerging markets. so a lot of short covering and at this point you're seeing a lot of stay long selling. gold needs to stay above $13.25 an ounce just to gather more support for the n