michael pento and joe, we appreciate it.ow, i always say corporate profits are the mother's milk of stocks. what are the earnings reports telling us about those profits? we'll look at it when we come back. i'm kudlow, please stay with us. meet the newest member of the quicken loans family: j.d. power and associates has ranked quicken loans highest in the nation in customer satisfaction... i say "family," because we've been blessed with this honor for 3 years in a row... rest assured we'll treat all of your mortgage needs with tender loving care. amazing client satisfaction: it's a quicken loans family value. call 800-quicken or go to quickenloans.com to experience it for youf. >>> all right. action-packed day on the earnings front. we have all the details. good evening, simone. >> it was action packed. let's start with amazon. it continues to spend big money on digital content and warehousing for expansion purposes. the stock trading violently in after hour sessions, down 5% initially. expeai expaid -- expedia, down 20%. and

joining me from illinois, joining me on the set, we welcome back to michael pento. and the author of the coming back bond market collapse. that's not a good thought to start on. but i will go to you first because you may be skeptical. but i think that things are changing in washington, d.c. i think the president's political power has been weakened by various scandals and what not. and i see these straws in the wind about good immigration reform and budget cutting and you saw in the paper today the deficit and the spending share of gdp are coming down. are things getting better? >> the main point, the fed is about to taper. that's going to send interest rates rising. the view on my part is that they're going to hit 4%. that's where they were in the spring of 2010. >> i agree with that, by the way. i just said it in the last segment. >> the -- if the interest rates go to 4% and ben bernanke stops buying assets from banks which is what this country needs, but this country's rebound was predicated on rebuilding asset bubbles, namely the stock market and the real estate