busy 24 hours ahead. >>> now let's get to the cme group, rick santelli there with the santelli exchangelissa lee. of course, this morning we looked at philly fed and it painted a fairly 180-degree different picture than, for example, empire. but there has been a lot of split decisions on data this week. we saw starts look good, permits not so much. we say a 1/10 increase on sales in headline and even though we all get lulled into come placey when the number matches expectations, you need to take a step back and just realize that 1/10 of 1% is not a strong number. why is -- this forensic so important? because whether it was last year or how we started to go into the summer and lose horsepower, or it's the notion that it's very difficult to dodge what's going on in europe. but the mixed call, keep it simple on the data this week, is definitely making some traders reassess their positions. greece. why is greece so important? pretty much everybody i meet that isn't on the inside baseball, that's the question. why is it so important? they've had multiple bailouts, we kind of know the exposur

rick santelli is working out on the next hour of squawk on the street. rick, what is coming up? about carbohydrates. so it's almost as if the santelli exchange is going food channel. i will tell you there's a lot of low-hanging fruit that could create jobs. that's what i'm talking about at the top of the hour. nnouncer ] s and awards lift you up. but they can also hold you back. unless you ask, what's next? [ zapping ] [ clang ] this is the next level of performance. the next level of innovation. the next rx. the all-new f sport. this is the pursuit of perfection. >>> could the german government moving under the radar to shore up the euro zone. there appear to be two developments, either which could spark a risk on rally. barclays chief economist is joining us live from london. the first development is euro bonds. very publicly merkel vetoed the idea of the italian borrowing but now reads that they are forcing her to instead reconsider the german idea of a european redemption fund. can you explain to us what that is and what that would do? >> okay. well, the idea of the european

rick santelli is now at the cme with the latest on the bond market. nd there's a lot of handicapping goipg on on what to expect for tomorrow's number, rick, right? >> absolutely. and traders are definitely handicapped due to all the uncertainty in the air that we continually speak to on cnbc. if you look at an intraday and year date of 10s, you can see we're a bit lower. look at intraday we're hovering at a fresh three-month closing. look at the bund closed up from their historic all-time year close 160 basis points. spanish auctionings, they went great except for the fact you paid up for the financing. last chart is euro currency. not highly unchanged from where it's been heading. back to you. >> rick, thanks very much. you're going to stay with us and we're going to bring in steve liesman because we're going to talk about something here very provocative said in a column by david einhorn. setting his sights not on herbalife but on ben bernanke. einhorn blasting bernanke and the fed over its low interest rate policy likening it to eating jelly donut af

thank you very much, rick santelli. >> last check, facebook 31, 71, down 7% right now. let's get to brian shactman with breaking news. >> i'm keeping my eye on chipol chipolte. cmj. i want to get this right, the u.s. attorney for the district of columbia is basically looking, an investigation into possible criminal securities law violations, it has a lot to do with the previously disclosed investigations by homeland security about verification requirements related to certain disclosures and statements. some of this is about immigration issues. it's very complicated. they were conducting an investigation into criminal security law violations relating to its employee work authorization verification compliance and related disclosures and statements. the stock was up 2.25%. it's pulling back right now. again, it's an investigation. they're in full compliance with. but that is according to an ak. >> thank you so much. we'll keep checking back. the dow jones industrial average up 35 points. the nasdaq composite actually also in the green, just barely, two points higher when f

rick santelli, earlier on, thank you to him as well. >> all right. another day, another shot across the bow of yahoo!. one day after accusing yahoo! ceo scott tompson having a degree he did not earn on his resume, dan loeb now calling for his immediate termination or face what he calls "further action" without defining that. but loeb -- rather third point is the laerjest outside shareholder in yahoo!. joining us online is eric jackson. some people say not a big deal. dan loeb says scott thompson needs to go. what say you? >> i'm totally in dan loeb's camp on this. there's just no way if i work at yahoo! and i see scott thompson come in and give a talk to me from now on, i'm going to see his lips flapping, but all i will be thinking about is why in the heck would you make up a major you took one course in in college? who does that? i think he has no credibility in the eyes of the employees. and i think shareholders, you know, feel a sense of betrayal. not just with him, but with patty who picked him and apparently no vetting process that went on befor

check in with rick santelli in chicago. . >> the nice thing about government data is there's a lot of different rabbit holes we can go down. my sources, friends, have been sending me one of the best. this is u.s. corporate profits. they were down over 4% in this gdp report. that's the worst showing since the credit crisis in '08. look at a 20-year chart. this is not good. it's one of these subindexes many people pay attention to. i think the graphics do it justice. that number wasn't very good. of course we see how the markets responded. small moves at hugely important historical spots with regard to fixed income. look at a 24-hour chart, ten-year note rates. yes, we did, eastern blip under 160. and the boone leading charge on historics actually in many ways traded under 1.25, under 1.25% for a ten-year boone in europe. obviously we know what the big story continues to be today. david faber, back to you. >> you know what, rick, while i've got you. you still there? >> yes. >> i never talk to rick. people forget, germany has a

back to you. >> rick santelli over at the cme. get another market flash. >> i'm not sure i can compete with that. i'll give you a single stock. windstream, i heard you mention earlier. it's come off its lows. it's an ugly day for windstream, down 11%. ironically, profits doubled but missing estimates. high speed internet ads, kind of a phone company. about half of what the consensus was. windstream down 11%. i know i got the hook last segment because of the london discussion. i feel like the modern pentathlon. you know it exists, but nobody's watching it. >> sometimes there's a gong, brian. it never ends well. see you later, brian sullivan. >> don't make me ski and shoot. >> let's bring in capital markets editor gary kaminski still in vegas at the investment conference known as salt. with the chairman of investment holdings. >> i'm here with joe. some of the stuff we were chatting with off camera, joe is a character. good morning. >> you look very casual. i've got a suit on. >> you look very good. let's talk about willis quickly.

rick santelli's at the cme group in chicago this morning. od morning, rick. >> good morning, carl. today at 8:30 eastern, we had a much better-than-expected drop in initial claims. and that is good news. whether that leads to a timely creation of jobs is yet to be seen. today's number isn't going to directly impact tomorrow's number. but at 8:30 eastern, you also had mr. draghi on the wire. it gets very difficult to distinguish exactly what the market was paying the most attention to. an intraday of ten-year here and in europe, they're highly correlated. they jumped up on rates and gave a little bit back. many believe the jump-up in rates was due to the better-than-expected claims. as you look at an intraday of the dollar index or in this case the euro currency, you can see that probably draghi has a bigger effect on moving the euro around because of his somewhat laissez-faire approach to inflation, probably because he's worried about different types of projects to try to help the company, like more ltros. back to you. >> thanks very much, mr

we have bob pisani, rick santelli, and peter shift and bill. welcome all around. bob mipisani, the energy level high. >> we can't even have a nice boring close into a three-day weekend. a little after 2:00 word comes out that bankia was getting a lot more money than people anticipated. 23, $24 billion. bottom line is, markets dropped. we lost several dozen points on that. this is the problem, you guys. we are just hostages to headlines. s&p is up 1.5%. you get headlines if it drops you more. a little stabilization. >> and peter swift, this is all about europe right now, isn't it? peter shift? >> oh, i'm sorry. >> i was distracted. >> when i say your name -- >> i think in some people's minds it is but europe is really foreshadowing a bigger problem here in the united states. i think there's still short-term downside risk in the market but i think the central banks, unfortunately, are not going to allow a substantial collapse in stock prices. ultimately you'll see a reversal and nominal stock prices will rise. it's not going to be good economic prices. it's not goin

rick santelli, you say it's not substantial. what's going to be the catalyst from this week into next week? >> well, i think fixed income is destined to remain very close to current levels. i think we're going to spend very little time at a 170 yield but a the lo of time within 20 basis points of a 2% yield why? because the good sovereigns, best hedge against all of the anxiety in the world, those issues aren't the kind of issues that are going to disappear on any given week, month, or year. and what is more, we look at the equities and how they behave in the afternoon is another symptom of high frequency trade becoming a bigger sponsorship as real investors, just avoid the stock market because they look at it as a managed commodity. >> is that what it is? every day we come in and the market is one way in the morning and then reversed in the afternoon. >> i don't think there's no new money coming in. i think one of the issues and i've had people ask me, and given the elections, the direction of the company, these are big issues

first, ron insana and our own rick santelli. what is your take on this? do we need to bring back the glass eagle? >> i've always felt that way, bob. had the government, in the wake of the scandals, i think prosecuted some financial ceos for violations, filing materially false financial statements and had they reimposed glass steagall, having said that, i like the way jamie dimon got and undue risks and deposits. >> rick santelli, your assessment of the situation. and as ron was saying they didn't intend to take undue risk. >> no one ever does. >> and i agree with everything that ron said. i agree you shouldn't be a principal and an agent. there's no question, everybody that i've talked to after the crisis understands and everybody can understand and i do think when you don't address things like over-the-counter issues, cbs issues, the glass-steagall aspects, they have been remiss. >> 2200 pages. >> i'm sorry. i was thinking health care. >> what bank failure would have been prevented? would wachovia not have bought a lot of crappy loans? what does glass-st

bob pisani and sue hererra and rick santelli, as always, at the cme group. on europe, you have france going socialist. you have greece continuing to threaten it's not going to go with any of these austerity measures. how do you see this playing out? >> well, it's very easy to blame greece because that's where the headlines are coming from. if you talk to people in the market, you're basically ratcheting up all these reasons, these event risks why you wouldn't want to hold events in europe at moment. if you look at london, frankfurt and paris if you look at them already. we've got intractable headlines coming out from greece. at the same time, you have this focus on where we are with growth. you don't have the leadership economically perhaps from the eu and now you have europe going into real estacession. at the same time, in sprain you have them releasing the new bank plan which might entail the spanish government borrowing more more or they may not. you have all of these things lining up and aspiring people to sell what didn't matter yesterday because we've

in chicago it's rick santelli. steve liesman is back at headquarters wishing he were fishing. i'm sorry. i had to give it away there, steve. bertha, a bounce, i guess. we'll see if this will last. we're losing steam in the final hour. >> this morning i was saying on the seventh day we took a rest. the bears took a little bit of a rest it seems today and decided things were oversold. but what's interesting is that the theme today for me has been cognizant dissadence. the third act of the greek drama is going to end with greek -- greece leaving the euro. we've never seen what that would look like. we don't know how you would do that in an organized way and certainly given the chaos that we're seeing, there are no bets that it could be done in an organized way. what's interesting today is that you're seeing the banks after spain goes in and partially nationalizes and here they are rising as well. spain also has to recapitalize those banks and where are they going to get the money for that? the feeling is that europe continues to be europe and the stakes even higher. but at the mo

rick santelli is in chicago. rick?> well, industrial production rose much more than expected, up 1.1%. double expectations. the fly in the ointment, last month originally released an unchanged. it is now down .6. if you average the two year, that's where you need to be. utilization rates jumping to 79.2. even though there was also a downward revision last month. now 79.2, boy that, is the highest utilization rate since april of '08. so we had a housing number that was very, very close to the best levels since '08. this is worth paying attention to. carl, back to you. >> all right. industrial production. a number that bernanke, we know, watches very closely, jim. >> look, we are -- there are three economies going on right now. there is the european economy which is in free fall. there's the chinese economy which is stalled and then there is the u.s. economy which is really getting pretty good. by the way, there is a fourth economy which is facebook. that is a very real issue, facebook, apple. are they what's going on in

. >>> rick santelli is using the cme as his own personal monkey bars. once again, rick. >> absolutely. tough stay in shape somehow. let's talk about the data. there are highlights that i'd really like to hit. the first one is, about 41.3% of the unemployed have been unemployed for 39.1 weeks. that is huge and i think that pretty much says it all. let's go to another area. if we look at -- according to peter, if we look at this recovery as the greatest since the great depression, a full 4/5 is due to the drop in the labor force participation rate. that he is a biggy. it's the lowest since 1981 and you've heard a lot about it on our channel. but i have to tell you, i'm not saying it's conspiracy. i'm saying in many ways it's media complacency. i was upstairs flipping the channels and many of them were leading with unemployment, 8.1 at a three-year low and that's where it ended. and i think viewers really need to get into the nitty gritty to avoid what i call ostrich economics. it really is ostrich economics. you put your head in the sand. let's look at an

rick santelli, you're in chicago. let's talk about the impact on the economy and fixed incomes today after the pending sales. >> record lows again. >> the treasury market is pretty much doing what it has been doing for many quarters in a row. we continue to see buyers. we continue to see investors move into that conondrum zone. they are not worried about return on principle. you see it in germany n. boone's in two-year negative yields. you even see it on japanese securities. the data in the u.s. is still going to matter. remember, we can slip under 2% in the first quarter with gdp. and it might be better than 118 but it's a far cry from the 250 we need. >> you know what's amazing, rick, the tlt, the biggest bond etf in the world is at an historic high today. the volume has been big today. you can get a 15-year mortgage for 3.75% right now. i don't know what bank would lend for 15 years at 3.25. >> isn't it nice that we have bonds doing what they are supposed to do? let's look at asset allocation again. >> can you hear

rick santelli tells us what he is hearing. how worried are people about europe and is that the big catalyst for this market? >> it is and it will be more than likely. we don't really know what is going to happen despite years now and we still don't know and spain, too, that risk premium is just widening and these levels that we've never seen and retail investors don't know when to put it in. >> close to 50% for young people, and these numbers are mimicked all around the region, certainly in the south. >> absolutely. you know, it's not just fear. markets have dealt with fear since the dawn of time. when you put in uncertain fee, the uncertainty needs a qualifier. here we are in 2012. the main credit crisis was in '08. it isn't only the fear. it's one more item. a lack of solutions. it was a sped up timeline. everything was happening fast. what we're seeing now without the solutions is we go from one quasi band-aid to another. you hear the political jargon. this administration is spending a rate of change and spending and spendi

rick santelli is at his perch. michael pento is with us and steve with sun america asset management. rick santelli, i'm going to start with you. it seems to me we have two distinctly different traders during the day. lately you've gotten one set of trades in the morning and then as soon as europe closes, the trade tone changes. am i wrong about that? >> no, i don't think you're wrong but i'm not sure that it's a different tone or a different type of character to the participant. we've all heard at great length how high frequency trading is making up a bigger and bigger equity trade and i think they are less apt to take big acquisitions home. and then they get flat or don't have big positions or making liquidity. so i think this stencil of two different markets is accurate. >> in fact, steve, you feel like we saw a lot of short covering in the opening, which accounted for the rally that we saw? >> yeah. i think some were announcing a chinese stimulus policy and we got it this morning. a lot of the cyclical names. we

rick santelli is at the cme in chicago with the details. rick, tell us what is happening in the bond market and what do you think of the debate? >> well, when it comes to that debate, you have to separate investing and investors from holders. holders are the federal reserve, china, japan, the uk, and they've taken a lot of paper out of the gain. it isn't about what the fed is necessarily going to have to buy to form a new program. it's what they are holding that doesn't trade in the marketplace along with the other big players. so be long, be short, i think there's a long time before either side is going to make or lose a lot of money. 2% is home base until we get the all clear in the world economy and at that point, wow, interest rates, in my opinion, are going to have a digital move that will make jaws drop down the road a bit. as far as today, big deal. four, five basis points that puts forth anxiety in front of the first of two employment reports. and when you've tried to connect jobs in the fed, i don't personally think that they are ma

tell us, brian, if whether or not brian is off the reservation or right on the mark, we have our rick santelli, who we heard from a moment ago, and bernstein, center of budget and policy priorities, rick, weigh-in. do you think brian was off the mark, on the mark or off the reservation? >> sully was spot-on. he was absolutely spot-on. you know, once again. it is not whether we are trying to fix something. because we tried to do that 22 months ago when we passed dodd frank. the only thing we should be worrying about with regard to jpmorgan is the cord that may connect them to the taxpayer's pocket, which was supposed to have been done 22 months ago. but congress shirked the responsibility. they passed it but didn't pencil it in. not only is sully right, he didn't go far enough. sully, aren't you even a little upset that the s.e.c., the fbi and department of justice seem to be paying more attention to the fact that if you have a trade you can lose money, versus mf where investors basically had their money stolen? >> there you go. the post office is going to lose $14 billion this year and $18 bil

thank you much, rick santelli. >> havens by their nature are safe. bit redundant. >>> greece woes. spain pain. facebook fails. mandy said facebook now below 29 bucks. we're higher on the dow. joining us now from london, global head of economics at sofge ner sofgen. mark, is this a quantitative easing trade? is this like so much bad news that it must be good news because bad news means fwood news because it means more money is going to come down thanks to the generous people at the ecb and our federal reserve? or is it something more substantial? >> brian, i don't think it's necessarily something more substantial. but i also don't think it's a quantitative easing trade. i think if we were seeing the prospects of quantitative easing in the marketplace, we would see it in the form of higher gold prices. which typically looks at liquidity as elixir to move its price of the bouillon much higher than where we are today to 15.50 or so. what we're seeing today is some pouncing on the news that perhaps the conservative political party in greece may have an ed

rick santelli's tracking the action for us once again from the cme in chicago.w a little move into the bond market earlier this morning. is it holding? >> it's holding. we're going to get to the bonds. it's going to be the last train car on this train. let's start at the forensics. putting everything together. if you look at the euro, everything happened between 11:00 and 12:00 eastern today. you can clearly see how the euro gave up ground. we're all in one giant trade. it begins and ends with europe. as you look at that, you see what everybody's been referring to. how much gold lost very quickly. didn't stop there. look at the s&p 500. how much ground it gave up. now we get to the protagonist here. this is what everybody wants to own. treasuries, bunds, gilds. yield pushed down to the lowest level where we still hover. lowest yield 1.68 from about a week and a half ago. intraday hovering at 1.71. everything occurred after the european close. sue, back to you. >> all righty, rick. >>> thank you, sue. off our highs of the day. the markets, at least the equity mar

. >>> breaking news from rick santelli in chicago. another bond auction. seven years this time around. let's see how they did. hi, rick. >> yes. the tombstone $99 billion in supply, $29 billion 7-years. bid-to-cover 2.83. this auction 2.80. ten auction indirects 40% this auction, 42.7. directs 14%, ten auction average this auction 15.7. what's note worthy is dealers only took 41% of this auction. that's a good thing especially when you look at the much higher percentage on instruments like two-year notes. the yield 1.203% pretty much right in the middle of the final wi market which i read around 120 and a half bid. this was a b minus. mostly average. i like the way it was tight on pricing in terms of where the wi was. sue, back to you. >> thank you very much, rick. the health and profits of the banking system are front and center in washington today. the fdic breaking down q-1 profits for banks and for thrifts. eamon javers is here. eamon, profits are up, but that does not translate necessarily to an increase in lending this time around. >> yeah. that's rig

rick santelli is back this time to give us an update on the markets. the cme. hi, rick. >> hi, sue. if you look at 1.78 yield on a 10-year as you look at this intraday chart, it really hasn't moved much in the last several hours. the reason why it's not moving much is probably there's not going to be a lot of volatility because there's not going to be really a lot of change in the balance sheets of countries and banks overseas and states domestically. think illinois. think california as being poster children for a lot of what ails the country. if you open it up to a chart that goes all the way back to september 1st, you can see third week in september is our record low yield. about seven basis points lower on a closing basis. you can also see that we're trading at levels we haven't seen since october. 2-day chart of bunds shows more dire picture. now in the mid-1.40s and continue to find buyers. last chart, this underscores what's going on in europe. a french bank. i could show spanish ones as well. credit agricole. where are they trading? all time low

rick santelli, you're up. how is the demand? >> the demand was very good. the auction 32 billion threes came in at a yield of .362. the w.i. market was right there at 1:00 eastern. it was 36 1/2 bid offered at 36. the bid to cover at 3.65's the best since january. and you're hard pressed to find another one in that region going back through time. 35.7 on indirects. very close to the ten auction average on 37. 11.2 on directs. 11 above the average of 10%. b-plus. dealers took down about 53%. very, very solid auction. back to you, tyler. >> all right, don't go anywhere. you're going to be outraged by what diana olick is reporting. that's about two minutes away. just wait. but first, many are pinning a portion of today's sell-off on remarks by alexis cipiras. i hope i pronounced that right. and the person who's going to correct me is right here. he is the man who is now trying to form a government in greece. he said today at that time country's previous bailout pledge is null and void, not having any of it. michele caruso-cabrera, you've met him. did i pronoun

and rick santelli's in the pits in chicago. fear trade is alive and well today, my dear. >> it absolutely is. and what's more is just how orderly and somewhat it is. it's not about return on capital. it's return of capital. we've said this before. if you look at an intraday chart, you can see briefly we traded under 1.62. so 1.618. if you look at a two-day chart, very interesting because yesterday's high yield was around 1.77 as we sit at 1.62. if you want to open it up as we're closing out the month of may, for the last day of april we were at 1.91. and here we sit at 1.62. of course the last chart's year-to-date. we continue to not only see it happen here, it's happening in the german markets. it's happening in the uk market. and to some extent even in the jgbs, the japanese bond market. back to you. >> i think that's one of the worrisome things, rick, is it is a global phenomenon into safety, correct? >> it absolutely is. and once again how low will interest rates go? that isn't the big question. the big question is what hap

tyler, back to you. >> rick santelli, thanks very much.cott cohn now with breaking news. >> the biggest bust in a massive crack down on health care fraud. $450 million plus, 150 charged. you see eric holder and kathleen just getting started. we reported on this crackdown just last month in our documentary "health care hustle." strike forces across the country have recovered $4 billion last year alone, which is impressive. until you consider the total cost of the fraud as much as $160 billion a year. today's raids were in miami. 59 defendants there alone as well as tampa, chicago, detroit, houston, los angeles and baton rouge where seven people are accused in a scam involving mental health care. in that case alone more than $225 million in false claims allegedly bill today medicare. that alone would be one of the largest medicare frauds ever. we're watching this news conference and will have more developments as we get them. >> thank you very much, scott. back to our investor war room. i have now aged, michael. i've aged to 40 to 50 years o

also with us are bob pisani and rick santelli. mike, i'm going to start with you. we just ran that sound bite of you saying you would sell jpmorgan. now it looks like the loss will be bigger than $2 billion. and worrisome to me is whether or not jpmorgan is going to be able to unwind or exit some of the trades that were put on. given the move in the stock lately, i believe you still would sell the stock, certainly. but what is your outlook for it in the near future, given these latest developments? >> the $2 billion loss for a $2 trillion firm is just not that big a deal. jpmorgan has had $60 billion of losses. that's $60 billion of losses at jpmorgan. you know what that is for? that's for the prior three years due to making loans. >> but you know what is going to happen, mike. they are becoming the new lightning rod for congress. >> exactly. >> to tighten the regulations in dodd/frank. and isn't it ironic that it happened to jamie dimon's company. he has been the most vocal critic among the major banking executives of the coming regulations. >> well, that's the is

>> still to come, let's check in with rick santelli and what he is working on. rick?ing to be a big hour, melissa lee. you know, go it alone or go it long. you know, many of us from past generations always thought about the country more as go alone and everybody follows meaning international. things have changed. a sense of urgency. is that what celebrates capitalism from government? and the last topic, fitch down grades today. how can that impact your investments? we'll talk about that all top of the hour. so uh this is my friend frank and his, uh, retirement plan. one golden crown. come on frank how long have we known each other? go to e-trade. they got killer tools man. they'll help you nail a retirement plan that's fierce. two golden crowns. you realize the odds of winning are the same as being mauled by a polar bear and a regular bear in the same day? frank! oh wow, you didn't win? i wanna show you something... it's my shocked face. [ gasps ] ♪ [ male announcer ] get a retirement plan that works at e-trade. [ engine turns over ] [ male announcer ] we began with t

rick santelli.of breaking news. send it over to dianna in washington, d.c. >> home builder confidence dropped five point ins may. april was a big drop. april was really 24. now we hit 29. 50 is the line between positive and negative sentiment. builders are reporting increased buyer traffic in sales after a pause in april. spring demand was pulled forward. then it dropped out and now aparntly it's backed. current sales and buyer traffic. rose three-points. the overall index back in may of 2007. the northeast saw a 6-point game in confidence. only the west posted a decline of two points. also breaking this hour, housing affordability on the realtor's index get a record high. >> thank you very much. let's get to the road map of this next hour of "squawk on the street." two big movers of the morning, home depot and groupon. we'll find out if the sudden spike is a reason to buy. >> plus, jp morgan shareholders getting their chance to voice their frustrations about that $2 billion trading loss. we'll go l

rick santelli joins us with the tuesday edition of the santelli exchange. th just doesn't add up, but even more than the math, the lessons from europe and the elections this weekend is simple. nobody's going to volunteer for austerity, and austerity is definitely about past due bills. in this country, the minute you're born, according to the debt clock, you have about a $50,000 debt the minute you're born. now, that's per individual. if you just look for taxpayer, it's closer to $138,000 per head. let's look at what everybody wants to talk about. we want to talk about growth, and that's definitely something out of the windshield where austerity is something in the rear view mirror. when it comes to growth, it's all about trying to hook in, of course, future capital and create more jobs. now, what did we learn this weekend? this weekend, we learned after thinking about it that the jobs outlook in the u.s. isn't very good. it's really about young people. look at the unemployment rate among the young. you realize that jobs are most important to them. why? becau

thank you, simon. >>> now to rick santelli back in chicago with a guest. he big talk on the floor yesterday was something on the zero hedge website. they talked about line 5.2 on the balance sheet. it was about $24.2 billion lower. that's that line item and what are we talking about? >> first of all, we are getting to definitions here. this is the three-year refinance program set up by the ecb that had a minimum holding period of one year. the loans went out to the various governments in the eu that can refinance their banks, whichever way they want to do it. but they are supposed to hold them for a year. what's going on with the line item is it dropped. >> so it is the amount of ltro out there. >> the outstanding balance of the loans. it has dropped first on may 11th and then 25th. >> those are rt wrote reporting periods, aren't they? >> yes, they are. those are free payments that have been made to the ecb. if these are one-year loans, we are not talking three months into this. either somebody lost their collateral or somebody whatted to repay it and they

it became a tea party when rick santelli, the cnbc reporter, was on the florida mercantile exchange and he started ranting and raving about how we areavin bailing out the mortgages in ths traitors behind him erupted in cheers. a couple of weeks after that we had our first tax day tea party asked rally so i don't think it was one thing but i do think ned about loss of the constitution of the erosion of the constitution has been for a long time. frankly since the battle over the bank of the united states in the late 1700s. let's go glenn beck makes frequent experiences in her book. since his big rally on the mall, what has happened quite >> guest: i think i mentioned it briefly twice. but you know, i think he was one of the organizers behind one of the big rallies, the largest one in the mall in the. and i think he is one of many disorders commentators who are kind of interested in the tea party and can tune you to give them some air time and a little bit more play in the mainstream. but he certainly not the father of the tea party. if you talk to tea partiers, they don't want a father. t

bill o'reilly is all about bipartisanship and rick santelli is unfortunately staying in the country. when it doesn't fit anywhere else, we put it in the viewfinder. >> anybody getting any money? anybody getting money, folks? >> mark zuckerberg has 503-point shares. at 38 shares its worth $19.1 billion. >> welcome to fabulous. >> one of the original founders now wants to denounce his u.s. citizenship so he doesn't have to pay $67 million in tax. >> he has done it. >> yes. >> and guess what, now there are two democrats on capitol hill who want to enact a new law so people can't do that any more. >> you would never renounce your citizenship, right? >> i would never. nobody is going to chase me out of my country. >> if he's were president, i would say we have to put aside this partisan garbage. we have to make some compromises. eled it would be more of a spiritual uplifting type of thing. >> what is the beef from the obama administration? why are they trying to demonize americans like me who have made money the old fashioned way we earned it. >> of course everybody wants to talk about jp

rick santelli with a look at trading grains over at the cnb. hey, rick. >> absolutely, carl.da report and that means jerry and ashleigh are here. we're going the start out with ashleigh. let's talk, well, let's talk soybeans. what do you expect to see in the report for people that have been paying attention, what percentage of the crop now is planted as we move towards the later stages of spring? >> we're already at 24% planted, which is way above normal. last year it was about 12%. this time the five-year average is about 11%. we're way ahead of schedule with the beans. we're expected to see the cary out down. >> when we talk carry out, how much is left over. >> we expect to see it 22 billion bush shel'lbushels lowe >> there are other parts of the country that grow lots of soybeans. brazil comes to mind. how does this come into this? three-year lows going back to july of '09 against the greenback. is that something to pay attention to? >> definitely something to pay attention to. it's a huge incentive for the brazilians to plant soybeans. for them, to get a really high price

want to hop over to the cme and check in with rick santelli and get the santelli exchange. good morning, carl. it is hard not to notice the credit markets, one of my favorite topics as we are one basis point away from a new historic yield low clothes already occurring in things like boons, guilds in the uk. germany has a zero coupon on their two-year note trading around six or seven basis points. the credit markets and the dollar index touching the 20-month high today. is it because we are doing something great? some might think so i personally don't think so. i think it is more of a function of no outlying qe extensions by our fed and the real link in the dollar index and the high majority of the trade is the euro. germany, the most common text i get these days is hey, where is the wid mark trading? why is that funny to me? many believe it isn't going to be certain countries that leave the euro zone. some that i talk to think it would be much more efficient if germany left and left the weaker countries in and they operate on the "d" mark. that would leave the euro to the we

. >>> first, rick santelli with an interesting day on the santelli exchange. e to their highs for the day, rick. >> yes, they are. i never thought 194 yield would ever be called a high yield, but nonetheless, everything is relative. i've really enjoyed, and so did many on the floor, steve liesman's interview with a pair of fed officials, dennis lockhart, atlanta, of course, and charles evans, chicago. so let's highlight some of the comments, very unscientific, that i heard around me as we discussed while we were listening. the first is the employment rate. the employment rate was mentioned a lot. it was mentioned as a trigger, as a target, where they think it's going to be. but one thing i never heard mentioned at all, i never heard anything about the labor force participation rate. and i'll tell you what, let's give our fed men the benefit of the doubt. it has been moving down for decades, but does that make it less important? in the end, if it's really about jobs, jobs, jobs, if we have less people working and the rest aren't counted and that brings down the

rebecca patterson, cnbc contributor, larry glazer and mary thompson and rick santelli joining us. thank you for joining us. rebecca, let me kick this off with you. a lot of action in asset classes. >> the hope that the imf might come and help spain. i think we're a way from clarity with europe from a long shot. the hope that the calvary is coming back like we saw with the ecb in december and earlier this year, i think central banks in general are helping to limit the downside. i think the bigger question is just what's the catalyst to get us up again? we need better economic data, greece resolved. i don't see any of that happening in the short term. >> larry, maria was saying, or i was, i guess, the nasdaq down the worst month in two years. you think the markets held up in may? >> when we look back on may, i think what we're really saying is how resilient the markets are in the face of such horrendous economic news. when you look at that, what the market is saying, investors are uning out of safe havens and number two, so much of the bad news is priced in. greece has been on the f

rick santelli, how you doing? >> good morning, carl. it is a wonderful day in the neighborhood.ate notes, boring topic. right? floating rate notes, we call them frns. okay? floating rate notes. today, the treasury gave us some information may refunding next week, 3s, 20s, 30s. they announced the sisz and gave us some ideas about borrowing needs and whatnot. but what they did say was -- this was been ongoing at cme with interest rate traders, they think there's benefits to the issuance of floating rate notes but they didn't give us a concrete time. they said today officially they'll revisit at a later date. why is this important? well, think about this. what happens on the twist? they buy 30s, they sell 2s. there's a couple firms that now have 2-year notes in every drawer in the office! yes, they do. and, they're at very low rates. so why would fixed rate versus floating rate be a bad thing for taxpayers but maybe a good thing for a lot of people in the business? because if rates should rise, they're going to get creamed. floating rate notes for the guy issuing when rates go up,

simon hobbs here with us onset and rick santelli also joining the conversation. bob, kick it off with you. >> i'm encouraged that we're continuing to see outperforming. it makes some sense. 46% of the earnings with the s&p 500 are outside the united states. europe is an important component. we should be down somewhat. if our markets are going to do better than the rest of europe, we should be doing better and i think the markets are reacting rationally. the issue is what is going on with spain. spain is facing nationization. >> they are contemplating cash going into the collection of the seven savings banks that is a break. that is a u-turn and opens up the fear that more tax money might have to go in. of course, the other spanish barvegs with bad loans. they are going to have to raise that. >> there's no leadership there. there's nobody there to say we don't want this traunch and who is there to endorse the check when it arrives? >>. >> well, a proportion of it is until it's needed in june, if you look at what the germans and chiefs are saying around europe, if

. >> rick santelli. tune in for the april adp jobs report expectations. 170,000 jobs.tune in for march factory orders down 1.6%. >> we are counting down to the jobs report. we are still on the session watch in europe with key manufacturing and employment data out of germany, france, and portugal. joining us now is the senior equity strategist for the advisers and jeff davis, chief investment officer. good to see you. it's god the adtrp numbers and how much do you expect to see ahead of the big friday jobs number? >> adp has a short-term effect and it's not all that well synched. people will be watching out for friday. the market may react for a half day. friday is the big day. >> friday. wait for that. do you believe that a lot of people say if that number is bad, it's good for the markets. >> unemployment numbers, that's what we are doing. we see a number out of adp that is 120 or something like that. that is not going to be good. the market is going to like that, believe it or not. >> maybe there is nor qe. you see the retreat in the marketss a reversal of fortune in

. >> rick santelli at 2:00 tomorrow 8:00 a.m. eastern.reliminary unit labor cross and nonfarm productivity. look for productivity to drop about a half percent and unit costs to rise about 2.5%. initial and continuing claims. initial claims are expecting 380,000 claims to remain around 3.31 million area. at 10:00 eastern, ism nonmanufacturing and an april read. we are looking for 55.4. tune in. >> tomorrow's initial claims report may be more important for the market on friday's jobs number. the earnings are very much in focus. 360 s&p 500 companies reported so far and 69% of the 360 companies beat street expectations surpassing the average of 62%. is it economic data or earnings news driving the decisions these days? our cnbc contributor and chief market strategist with mkm partners. good to see you both. an initial jobless claims out tomorrow. the adp report out today. how important is it? >> very important because we have the numbers pretty weak today and we were able to brush it off. the claims tend to be a leading indicator and the las

breaking news from the bond market, rick santelli is at the cme in chicago. how'd we do? >> well, i'm a little surprised. we'll get to the great in a minute. the metrics $24 billion bit upsize from previous auction to $21 billion, not a reopening first time issue. yield, 1.855. where was wi trading? pretty much right there. so far so good. now if you look at the bid-to-cover, 3.11 10 auction average this was the worst since november. the directs were at -- what was the directs, doug? 15? 15, they were pretty much right on average. indirects were a little light at 38.7% below 42. we're going to give this one a c plus. i didn't like the weak bid-to-cover even though it priced about right. >> why? given the carnage that we've been seeing in the markets and the flow into treasuries, what happened? >> if i look at it with a trader hat on, it isn't hard to see that there's a lot of buying going on in treasuries and maybe getting too aggressive in the auction you can always play it in the secondary markets. and i think one other issue is just generically look at the flight to sa

bob pisani and rick santelli joining bill and myself. >> bob, why is it at a four-year high? >> people stop me in the street. it's crazy. there's two things. you mentioned the earnings. down from 1%, the earnings are continuing to be better. but i don't think people have a lot of alternatives as well. i don't think professional investors have a lot of alternatives. you can't do it in the bond market and the u.s. stock market offers alternatives. you can argue and say that the federal reserve is giving people no choice. they are manipulating the market. you can make those arguments but i think people are investing in the u.s. stock market because there are not a lot of alternatives. >> a lot of asset managers talking about this inability to make any decisions here because they are uncertain about the tax issue ahead of the election. they are uncertain about what is going on in europe. rick, it seems like we're not going to see a lot happen until after november at this point. what's so troublesome in europe from your standpoint? >> the best analogy is the subprime and how that

bob pisani and rick santelli join me to weigh in. increasingly we're seeing money going into things like money markets, savings accounts. very, very low yields. you're seeing huge volume into treasury funds? >> on the one hand people are going for safety. on the other hand, people are still going for yields. i noted all day today that the tlt, the biggest bond fund out there has got huge amounts going in. it's been trading for ten years and the important thing is people are showing no signs of taking money out. on the other hand, people are also stretching for yields, the jnk have been holding up very well. there were sellers last week apparently but this week it's been holding up. that's yielding 6%. >> rick, another area has corporate bonds. you are getting some competitive yields with some of the corporates. you have a record low with the ten-year. where are you finding this market? >> there are three areas that we should pay attention to. you look at the barclays intext, index, not bad. if you look at 680 over but you need to be

rick santelli and bob pisani joining us. facebook banner demanding to appoint a female to its board. this is pretty aggressive here. they want a female on the board. is this appropriate going into this ipo? bob, what do you hear? >> i think the big issue is what is the valuation of facebook? i'm not hearing a big issue on the street about this or a big debate about what is going on. i think it's a nice way to argue about representation for women on boards, which i am absolutely supportive of. >> we've got a guest coming on on that subject. let's talk about the markets and what's going on. steve liesman, the fed minutes, are you surprised about the information we got in about half an hour ago? >> a little bit. just the way that they are kind of parsed out. what happened is, more members are willing to step up to the plate if the economy falters. however, fewer members compared with january are assuming they won't have to. i think that washes out for the market. i think what the market did was read the first headline that we p

. >> meantime, rick santelli, yields on the ten-year, and the minneapolis fed bank president lakota said moments ago that he fields yields are as low as they were, because the market will be able to get its fiscal house in order this morning. >> i don't know what he's eating, drinking or smoking -- >> i thought you would like that. >> -- but these yields are a squeeze on collateral. what does that mean? money fleeing out of the banks and various financial institutions in europe. where is that money going? bunds, treasuries, bobbles, shots. that's where the money seems to be going, and i don't think there's very many positives associated with that flow, and one final point, bob has been right all along, euro bonds certainly help everything. the only way i can see any significant help, but what does that really mean? it means germany will be on the line for everything. i just don't see it happening. >> the only scenario here, the only thing you can say for sure, rick, is almost under any scenario, germany will have to write a really big check. that will be the big issue, whether they'll do

bob pisani is here with us, rick santelli at the cme in chicago and analyst for the street and cnbc contributor peter bookfar. they are piling on the shareholders and calling for jamie dimon to come up for this hearing that they are going to hold for the banking committee. should he keep the chairmanship, how do you think this is going here? >> i think this has gone too far. banks lose money every single day. he hope that they can make more money than lose and jpmorgan before this was expected to make $20 billion this year. so they took a bad hit based on bad judgment. but if they made $2 billion on this hedge i'm sure we would not be hearing any of this. i didn't realize that losing money is a crime. >> you know, peter, it's really amazing to hear senator reid say that jpmorgan should come to las vegas because it's a gamble. is this a blatant evidence that these guys in washington have no clue how it works? >> i think you said it right. they have no clue. what do you get in a lot of drunken soldiers that take advantage of that. >> be that as it may, we are in a political climate where everybod

much, david costin from goldman sachs. >>> let's get over to the cme group and check in with rick santel santellil, before i get into the sani santelli exchange, do you have any dogs? >> do i have a dog? >> yeah. >> yes, i have a dog. his name is lucky. why? >> all right. i have a dog named maggi, because our dogs and how they behave is really integral to regulators writing good regulation. and i'll tell you why. here's a delectable piece of raw meat, all right? if i leave this piece of raw meat out, and i too have dogs. i guarantee, when i go out to the barbecue to fire it up and come back, if i leave that piece of raw meat out, carl, do you think it's going to be there when i get back? no, it won't be. and there's a big life lesson to be learned there. and i'll tell you why. because whether you're a banker, whether you're jpmorgan, whether you're morgan stanley, whether you're a securitizer, all caplesses, all entrepreneurs, all bankers will eat a piece of raw meat that is negligently left sitting out. they just will. it take it a step farther. when our dogs eat the piece of raw meat we left ou