and i think that we have 5 billion mbs and 10 of treasuries. so something there.s economic projections. the market thinks that 15 will be accompanied by a lowering in the unemployment threshold from 6.5% to 6%, which i do not see. again, for the reasons of credibility. so, therefore, we have to look at chairman bernanke's press conference at 2:30. the ball's in his court. the guy's good. i actually wouldn't even react at 2:00 tomorrow, scott. i would do nothing until i hear this guy talk. >> so if you look at the risks that have been removed now and we take a look at where this market may be able to go after, you know, having -- getting off to a better than expected start to september than many had thought, summers gone. syria, off the front page. those are two net positives, certainly, for the rally, right? >> they are. but i think the market missed the big one yesterday. nobody's talking about president obama's press conference yesterday. that was somebody -- just looking at his body language -- if you thought the debt ceiling debate was a bad one in q4 of last

she said half mbs, half treasuries. i don't think they do any mbs. the housing market is too important. but the trade out of this now, i think you can buy bonds once again here at least into september 18th into that fomc meeting. then you need to be careful. >> we talked about the shb last week. you had great support. up nicely today one and a quarter percent or so. as counterintuitive it may sound, loe i don't like the housing market. i think it sets up for a good trade. >> would you buy? >> well i would and i'll tell you this on the ten-year note 3% has to be a ceiling for a very simple reason the short rate is anchored. the fed funds rate is not going to move up any time in the next year. >> that basis point of steepness between the ten year and short rate, that's too attractive for lever annual buyers to buy the ten year and keep the yield down. it's not going down much more 3% is not going much higher than that. this is a good stable rate past the september 18th. >> we'll find out on that. that's been the fed's argument. their argument is if we

he had it 100% right if they touch mbs tomorrow. housing goes down. market goes down.y error in my view. >> in the meantime we got a warning. >> scary. i don't think the market has give an benefit of the doubt sense. and the stock performance today dictates that maybe that is in the card. i wouldn't be surprised to see this in the mid 115, 116 level and i smell a fast fire. >> exactly. that's life. >> i like it. >> that's life and that's trading. another earnings record that we are watching closely, oracle has seen a number of ups and downs but remains flat in 2013. the results after the bell? >> it's a pretty cheap stock but they disappointed mightily in the first quarter. he's gotd his eyes on the america's cup. i think he has front loaded so he can sail. >> all right. final trades coming up next. you really love, what would you do?" ♪ [ woman ] i'd be a writer. [ man ] i'd be a baker. [ woman ] i wanna be a pie maker. [ man ] i wanna be a pilot. [ woman ] i'd be an architect. what if i told you someone could pay you and what if that person were you? ♪ when you think

. >>> mbs news has learned the subcontractor that aaron alex had is worked for has been fired by hewlett-packardey hired alexis to work on a job to refresh and replace computers at the navy yard. hp says in part it has, quote, lost all confidence in the experts abilities to serve hp as a subcontract thor. they cite the failure to respond appropriately to aaron alexis' mental health issues. a spokesperson for the experts says the company is disappointed in hp's decision. he also says hp had its own manager of alexis who was with alexis when he thought he heard voices in his rhode island hotel room last month. >>> we are also seeing disturbing images of alexis roaming the halls of building 197 armed with that sawed off shotgun. take a look at this, video released by the fbi. agents say they also found clues in a backpack alexis left in a bathroom as to why he killed 12 people. they found electronic files that suggested alexis believed he was being controlled by extremely low frequency electromagnetic waves. he believes he had been subject to them for three months. he indicated he was prepared to d

tavis: so government has ewbe wherenown as mb women and minorities have to be allowed to be part of the process, to be able to bid on contract x, y or z. what is the purpose of that inside corporate america? or are they not aware of this white skin was at the benefit from? >> after the civil rights movement was passed and after there was specific presidential orders to pay attention to the of hiring decisions, specifically through affirmative action reporting and so on, then companies did need to pay attention to at the outcomes of their decisions were. but what has happened over time is that there has been more and ofe pushback to that kind counting the outcome and trying to focus the issues on intentions to discriminate. so what is illegal is if someone intentionally discriminates. we don't have as many opportunities, either in companies or in terms of of the government regulation, to actually look at the kinds of decisions that get made. so what has happened over time is that there has been, to some extent, a resegregation of some jobs and certainly of housing and of education becaus

so there's -- the belief is there's a bit more for stocks to adjust than there is for mbs or bonds to adjust to a taper. and the market outlook, which is interesting. 3% 10-year seen in december 2013. 3.3% for june 2014. s&p, now that's a mark down from the prior survey, 1,654 and 1,704 in june 2014. and the fed funds remain under control. the market does believe in a september taper but not a whole lot, guys, in a fed funds rate. the market did push back the expectations for the first rate hike from the average of the third quarter of 2015 to the second quarter. guys, shaken but not stirred in the belief of a september taper. maria? >> all right, steve. stay right there. we want to join the conversat n conversaticonversation in our "closing bell exchange," with peter, john, michael, and our own rick santelli. first, let me get your take, michael yoshikami. the market seems to have anticipated the taper will come. here we are at 3% on the 10-year. is the taper already priced in? >> i think the tapering is already priced in. i think if the numbers play out the way steve outlined in ter

these designs show a traditional place of honor will be the site mb where ad to memorial stone now lies. lester is pressing ahead, but they have a battle on their celebrates the city's ties, and many believe king richard should be buried there. the plantagenet alliance have reviewed the decision. >> they need to stop what they are doing. they need to wait for the outcome of the hearing. they will soon be announcing to the world they are going to bury richard when there has been no decision here. >> it looks like there will be a legal tussle over king richard in the court. a source for the ministry of justice said it will vigorously defend its position backing lester toss claim to the king. -- lester's claim to the king. one times," taking aim at the united states, senator john mccain responds, but finding it on russian newsstands was not the easiest of tasks. >> one of the most erotic media events last week was vladimir putin's opinion piece -- one of the most scandalous media events last week was vladimir putin toss opinion piece in "the new york times." washington has responded in kin

now we'll hear from mbs of the public. >> mr. toronto? >> hi. good afternoon. sorry we are missing two more directors to hear this issue. remember this is related to passengers service. this is not related to who makes more money or dispatch. this is about meeting the customer and passenger demands. i want to point out to you, i would like to get a copy of that. it was great that you showed that. you know the royal dispatch had better performance than the checker. you have to check that. it's not rule about how many tax easy. if there is a rule about few tax easy. it can't affect performance unless you have drivers that are committed to taking care of the calls. also there is associated problems about this. dispatch was used to also determine how many of the specialized medallions you got. there were some -- i would like to say, i would like to challenge the way this was done. the person who handled this gave medallions to some people who have very few cabs but were rewarded even though performance was not very well done. there is royal citywide dispatch, is a

these designs show a traditional place of honor will be the site mb where ad to memorial stone now lies. lester is pressing ahead, but they have a battle on their celebrates the city's ties, and many believe king richard should be buried there. the plantagenet alliance have reviewed the decision. >> they need to stop what they are doing. they need to wait for the outcome of the hearing. they will soon be announcing to the world they are going to bury richard when there has been no decision here. >> it looks like there will be a lel tussle over king richard in the court. a source for the ministry of justice said it will vigorously defend its position backing lester toss claim to the king. -- lester's claim to the king. one times," taking aim at the united states, senator john mccain responds, but finding it on russian newsstands was not the easiest of tasks. >> one of the most erotic media events last week was vladimir putin's opinion piece -- one of the most scandalous media events last week was vladimir putin toss opinion piece in "the new york times." washington has responded in kind.

if the fed, maybe they buy mbs, they stop buying some of the treasuries. the treasury could get really nailed here. i think yields continue to go up. if you do have a hint of an unemployment rate below 7% in the next few months, some say it could happen. >> any evidence we could expect it's the first thing? we are not giving good economic data. that's the reason you buy calls. >> i would stick with tlt. traders like to say when it's horrible, sometimes it's best. i think carter here is being incredibly courageous. i think this is completely in the face of conventional wisdom. >> that said, this is pretty expensive. i don't think the taper is a rumor. it's a fact. >> you know -- >> it's a guess. >> sometimes when it looks terrible is when you step in, you make the most money. but, wow. >> when we come back -- >> 1.5%. no one wanted to expect anything but lower rates. now we move up to 4, empg everyone is talking higher. we think you take the road less traveled. >> we will see. what do they have? in microcost's zay case, it could be dead mine i money, we'll

the fed -- maybe they buy mbs but stop buying some of the treasuries.could get really nailed here and i think yields continue to go up. you do have a hint of an unemployment rate below 7% in the next few months, which some people are saying could happen, then -- >> today we didn't see any evidence that could happen. we're not seeing good economic data. the reason that you buy calls. in the long run, rates will go higher. >> i'd stick with tlt. you don't need to overthink this. when it looks horrible, sometimes it's best. i think carter here is being incredibly courageous because i think this is completely in the face of conventional wisdom. that said, this is pretty expensive. i don't think that the taper is a rumor. it's a fact. and i think it's going to take a lot of air out of the -- >> the viewer at -- >> sometimes when it looks terrible is when you step in and make the most money but, wow! >> coming up next -- >> 1.5%. no one wanted to expect anything but lower rates. now that we've moved up to 4, everyone is talking higher. we think take the road

are they worth the mb money?> is it okay for your gas station to make you pay for what someone else pumped? >>> new research shows fewer than half of america's high school seniors are academically ready for college. the college board found only 43% of the seniors are ready for college based r.sat scores. showing less than half of the students reach that had bench mark out of a possible score of 2400 and this is not a fluke. it's the fifth straight year. >> checking healthy living news for some of us there is nothing more refreshing than a good nap. now, researchers studying sis sigh yengs of sleep have new tips for getting most out of the naps. tip one, choose the right time. experts say before 1:00 and p.m. p.m. is best. two, nap in a chair, being partially upright prevents from you falling into a deep sleep. and drink a cup of caffeinated coffee before a nap. >> the benefit of the nap and caffeine kicking in. >> the vice is to nap earlly and often, get as much sleep as you can. >> the name of the game is beinge

it will perhaps just maybe leave the mbs alone and just cut back on treasurys? possibility. the housing market recovery is still very tenuous. it is delicate. if they're going to pull something back, i think it is going to be treasurys first. then it would be mortgage backs after that. i think they will try to lay expectations out when they will be gone completely and let the market do what it should be doing on its own. ashley: have equities priced in the taper? >> no, i don't think so. we think the taper itself has been priced in but not the full exit of the fed from the buying program. so we think there is expectations that this just continued stimulus will go on forever. that's why we saw the rally yesterday when summers resigned, pulled himself out of the running if you will. the market just needs that additional stimulus to be able to justify the valuations that we have today. we're not seeing it in profit growth. we're not seeing it in cash flow growth. we're not seeing it in revenue growth. they are hopeful buying is continued so they haven't priced it i

five billion on mbs you must be a little surprised? >> i am a little surprised. was about as much as bernanke's legacy to restore more about a normal economy but clearly he is worried about the economy. if you're a bond investor this is sure sign the fed doesn't want rates to go high and another sign the selloff is over. as far as the rate projection for 2016 i think that was key hurdle for the bond market. 2, 2 1/2 fed funds was largely what the bond market expected. muted reaction but still a positive one for bonds. ashley: should we bring in the market folks now? what do you think. go to nicole petallides, if you're standing by. tracy pointed out. the market shot up and came back down and now it is kind of up 77 points. it certainly reacted. >> these are like the most exciting days on wall street. these are the types of days where you don't get what you expected. most people expected that 10 to 15 billion in tapering. instead they got a different picture. in this case, equities took off, the dollar pulled back. the 10-year now at 2.75%. it really is very inter

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>> a quick reminder, programming note that mbs's all-in host chris hayess aa sit-down interview withry of state john kerry tonight at 8:00 p.m. eastern time. and now with alex wagner is coming up next and alex, i know you have a big get of your own for the next hour. we look forward to it. >> different lane. but we got ron paul today at noonish. thanks, thomas. president obama's facing two distinct but not mutually exclusive challenges on syria russian president vladimir putin and the united states congress. we will discuss both with former national security council spokesman and panelists karen finney, david corn and al exwald. plus former congressman and libertarian godfather ron paul joins us for a discussion about syria, republican schisms and the newly launched ron paul channel. and there is word on the hill that 2014 could be speaker john boehner's last stance. is boehner the best hope for american democracy? al that when "now" starts right after this. uld quit smoking but chantix helped me do it. i told my doctor i think i'm... i'm ready. [ male announcer ] along with support,

today mortgage rates loosely follow the ten-year treasury but rates care more about mbs according to matt new graham at mortgage news daily. be prepared for rates to go either way at a fast pace this afternoon. how much does it really matter to the housing recovery? doug yearly ceo of toll brothers said on "squawk box" no matter what the feds says it can't change housing demographics and peter at the lindsay group says the impact of the incredible amount of fed accommodation over the past five years can be partly undone if interest rates continue higher. what he's saying housing could enter a giveback period because just like the drop after the home buyer tax credit there is no free lunch. tyler. >> all right. diana olick, thank you very much. >>> let's take a look at apple which has had some rough days in recent weeks but today is to the one of them. up $6.43. the first reviews of those new iphones released overnight showed mostly positive reactions. which the company says the most dramatic change to mobile -- its mobile operating system since the iphone's launch in 2007. so, the ea

when the fed bought mbs, mortgage-backed securities that has been issued by fannie mae and freddie mac and that was critical because the market was frozen. when they went on in 2009, that was quite harmful. the fed is directing the capital to the government and to big corporations. >> all right. the -- but how about the t.a.r.p. capital injection? a lot of people in america are really angry at the bailouts. main street businesses went under because they couldn't get credit or whatever. many people lost their homes and so forth. they didn't get bailed out. why should -- really the question, john, we bailed out citibank so many times you can lose count of it. >> i think the bailouts were harmful. but what doug said there was right, that when congress did that first vote, remember paulson had put them to a vote on buying toxic assets. that would have been a bad idea. but then congress allocated a huge amount of money. so that was this loud signal that even though you don't want to buy toxic assets that would have been a mistake. it was money sitting there and available. so i think that di

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it's about the mbs and it's about the rate structure. it's not about this little -- the taper per se. >> over the holiday, i had conversation with some market watchers about who might be the chairman. and there is a feeling within some circles, deutsche bank has this feeling, that tim geithner is also an option out there. >> a stealth choice? >> yeah. i mean, i don't know, anybody buy into that of our panel? tim geithner a possibility for chairman? >> i mean -- [ overlapping speakers ] >> -- want it -- >> i'm sorry, what, steve? >> yeah, i have no -- no idea who will be the fed chairman. i don't think it matters that much. what's interesting about this taper talk is that yields on the 10-year note actually bottomed in july of last year and started rising since then. that's well before anybody was talking about a taper. so i think what's driving the trends of the market is not so much taper. i think rick has it right, we're in a new era so to speak, quote/unquote, where the rate structure is starting to turn, because psychology has turned

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in h.r. 1233 and 1234, the director describes two high-level goals and a series of actions that o to mb and the departments and agencies of the federal government must take to modernize policies and practices. the two goals are, first, require electronic recordkeeping and, secondly, demonstrate compliance with the federal records management statutes and regulations. i'm pleased to say that we are making progress toward achieving these goals. for example, in response to the directive, each agency designated a senior official to oversee and insure compliance with records management statutes and regulations, not the records manager, a senior agency official with that responsibility. and last month nara issued guidance to assist agencies for managing e-mail records in format by the end of 2016. as a result of the office of personnel management is working to establish a formal occupational series. there is no such thing as a records manager in the federal occupational series. and by the end of 2014, agency records officers must obtain the nara certificate of federal records management and tr

he doesn't think they'll stop or they'll taker on the mbs. they'll taker -- >> that's what i'm hearing. they're going to taper. >> probably. i would say 10 to 15 billion, right? >> yeah, i would say 10 to 15. >> 10 to 15? >> tapering is coming. >> i saw an argument no tapering. >> who? >> who said that? >> ian shepherdson. >> if you look at -- because i think you looked at the last three months if you look at the jobs that have been added, it was like 40,000 below what it had been leading up to that. >> we're getting none. >> then i checked the "huffington post." the top thing on the "huffington post" is that the fed is going to mess up again that, you know, they have messed up every recovery and if they even think about not putting 85 billion in every month, they're just being really -- not doing what they're supposed to do. >> more on yellen too. it's a whole yellen campaign. >> has she ever been even considered by the obama -- has anyone inside the white house ever said the word yellen? >> we don't know about the white house. >> 100%. >> i