>> yes. >> all right, rick santelli, thank you so much.cks are surging along with the euro/u.s. dollar. we got the european close straight ahead. copies of my acceptance speech. great! it's always good to have a backup plan, in case i get hit by a meteor. wow, your hair looks great. didn't realize they did photoshop here. hey, good call on those mugs. can't let 'em see what you're drinking. you know, i'm glad we're both running a nice, clean race. no need to get nasty. here's your "honk if you had an affair with taylor" yard sign. looks good. [ male announcer ] fedex office. now save 50% on banners. every time a local business opens its doors, or makes another sale, or hires another employee, it's not just good for business. it's good for the entire community. at bank of america, we know the impact that local businesses have on communities. that's why we've extended over $4 billion in new credit to local businesses across the country so far this year. because the more we help them, the more we can help make communities stronger. a short wo

let me play rick santelli for a minute, rick, and then you can respond yourself. >> make sure you gesticulateah! i will. i always do anyway. i will argue that any savings that poor people would have or any benefit they get is killed by the inflationary aspects to gasoline and food which are extremely regressive costs. >> and those you assure are direct results from quantitative easing? >> they're there. >> i agree with you. you said it well. >> if it's from quantitative easing and the net effects of inflation of quantitative easing is to wipe out any gains to aggregate demand i agree with you. i just don't think all of it comes from what's happening with qe. look what's happened to oil prices since the fed acted. look what's happened to other prices. grain prices have come down. so i think that's a major issue that you have to sort of be more sure about if you're going to make that case. and by the way, you changed your argument in mid-sentence. >> you just -- >> whoa, whoa. you just accused me of changing my argument? >> you changed your argument entirely. you began by talking about how it w

before we find out what's coming up tonight let's get to rick santelli and get sentiment numbers. it? 78.3. now, this is very important. that isn't a bad number. remember we always have the preliminary and the final. so this is the final read. the preliminary was 79.2. we now throw that away. our actual last reading was the august final at 74.3. it as nice improvement. the high water mark was may at 79.3 the best level since october of '07. we've had higher levels but 78.3 is about the third best so a very nice university of michigan and a very, very weak chicago. we'll have to define which is giving us a better glimpse of the future. carl quintanilla, back to you. >> a split between sentiment among consumers and businesses getting really interesting. >> isn't it? that's the way to look at it. >> yeah right? >> that is exactly the way to look at it. that is why retail sales have leld off. auto sales have held off. one group is positive and the other negative. >> what is tonight? >> itt, new name for me. don't know this. come on. obviously going to flesh it out. sometimes i have re

get to chicago and check in with rick santelli and the santelli exchange talking about growth and i amsuasion, rick. >> you know, it is a powerful scenario. i thought president clinton was very powerful last night. once again, there is lies, darn lies and statistics. let's look at a few issues here. if you consider we constantly hear scott scone's fact check. we'll make it simple. if the president got in and jobs were going down and jobs your honor itted up and if you count it here this much and here 4.5 million and you get what i am saying. another thing i find fascinating, when you consider spending levels, which is huge, i am all about spending and stop spending, if we have crisis levels up to this level and moderate rates and does this and if you count from here to here, spending went down. really you have to count all the way back. you get what i am saying. when it comes to entitlement programs, i thought the president last night was so powerful but yet let's really be honest here. stls a ponzi notion. they can't continue the way they r you can slice and dice it any way you want.

let's bring back in rick santelli and jina sanchez.ina, before we get to that, right, which larry's been talking about all night, i just reread the speech. i don't see anything in here about job creation -- >> or growth. >> well, it makes me nervous about tomorrow's jobs numbers. >> well, i don't think there are too many people who are nervous about tomorrow's job number. i would say that he was certainly light on specifics, but i would agree with the previous comment that this really wasn't the venue for that nor do i think it was the purpose of the speech. i think that what he was trying to do was to reach out and to hit certain -- he actually did hit quite a bit of long-term growth concepts like education, which is one of the biggest factors in changing the trajectory of an economy. and also the idea that what we're doing in this plan and the reason it is taking so long is because, you know, you're talking about stopping the self-reinforcing cycles. when you start to get into a crisis where you see firings and then you see income lo

meg mcclellin, and rick santelli is staying late for us. rick, what do you make of the market response today? very dramatic and strong. >> i agree it's government induced, but it doesn't change the fact that everybody in that s&p pit, if they choose to take out their money, their going to get a check. it's real in that regard. i think a better question is one or two years down the road, will spain's unemployment and housing going to catch up with it? and i heard headlines out of spain, rates have dropped, do we even need a bail out, do they not understand what's going on? >> randy, what about you, is europe's crisis really contained? do you buy into this rally? >> we have been listening to this for so long. at least this is a positive move forward. they do a sterilized buy back and that's important. can this get the individual investor off the sidelines. they have been dealing with low money rates, low treasury bill rates. the stock market has done well this year, we need stimulus to get them off the sidelines and into the markets and this c

in a moment, our rick santelli will be joining us. let's kick this off. you point out that in terms of investor sentiment, it's up from a low level, and the markets has more room to run. how much do you believe this is attributed to the price of oil? >> well, the price of oil is impacting the market, but it's all about the qe at this point. quantitative easing is really significantly impacting the market, irrespective of what the economy is doing. you're seeing a decoupling between the market and easing. the investor sentiment survey you talked about, yes, it's high, but there's still a lot of runway to go, given where it has been in the past. >> bit of a disconnect there with mutual found outflows you're a little more cautious ahead of the upcoming profits reports. what do you see going on? >> yeah, i think when you look closely it's the last earnings report. we saw a sharp falloff on top line surprises. if you look at just the last few months, we saw roughly about 40% of the larger firms surprised at the top liner sale side. if you go back a year earlie

my favorite big city in america and rick santelli. rick, what are the traders there making of this amazing stock run? >> well, you know, i think the amazing stock run is no surprise to traders down here. because they do believe that a bazooka can cause shorts to behave in an aggressive let's get out of the position fashion and that's the catalyst with new activity but i'd like ask you to me the same question as bob. is today's stock rally going to be a big deal at the dnc convention? because i -- if i was there, and i think the president should brag about that, what i would throw up next would be, well, if you look at december 28th and that's the dow record you're looking at, interest rates on that day for the 10-year 4.07 and if you look a week later at your january 3rd comp for the s&p interest rates were 3.89 on a 10-year so i pose to you, the president ought to give ben a call because managing these interest rates takes him so far. if this stock rally is the real deal as bob debates, interest rates have hundreds of basis points to

i have doug sandler from river front investment group, ron insana, and rick santelli. >> yeah, that is really one of the only pieces of news that we could really sink our teeth into. when you hear march yes draghi and chairman bernanke, it's all rhetoric. when you hear companies saying we're lowering our forecasts, and these companies have their tentacles into just about every almost of the global economy, you have to take notice. >> doug, what do you think? that the fedex warning is more than just fedex and something going on in the world today? >> the thing to remember about stock price social security they move based on two things. what happened and what people expected to happen. i think the globe slowing down, it's weak in china, everyone knows about the euro zone slowness. i think it's reflected as bad as things were, it was only down 2%. and i think a lot of people are vulnerable to expectation that's ll be worse than they really gs are. >> do you think the market can remain resilient? >> we certainly do, and we have been recommending investors take a dlor cost approach. most pe

so, rick santelli, your thoughts on joe biden's speech. >> i thought it was an impassioned speech. certain portions of it especially regarding the military and how a job is more than a paycheck, that i am totally enamored with. like larry, for me, if i were to listen to his speech as a voter to try to make a decision, i don't know that anything mr. biden said would move the ball closer to the goal post if i was worried about the longevity of the entitlement programs and of course, the biggest question of all, how are we going to create jobs. i just don't know there's any substance there, but then again, for this type of speech, i don't look for a lot of substance. >> gina, you were probably the most pessimistic. did you hear anything from biden that would change your mind? >> well, no, i'm still pretty pessimistic. i think the one thing biden said that was worth listening to was that the point of all of this spending was to help bridge a gap and give people a chance at a job. at having a living, et cetera. to bridge the gap to better times in the future. and that's probably the bes

joining us to break it down is director of the tax policy center and our own rick santelli. u agree with trump? >> i'm not going to agree or disagree with trump. my opinion is he stated basic facts, not an elegant fashion. sometimes the facts aren't easy to swallow. the issue here isn't about that sound bite. the issue here is about the media. we have a $16 trillion debt. we have a jobs program, or many jobs programs that haven't worked. we have a federal reserve who is ultimately going to print whatever size of their balance sheet we get. we have had an attack on the 11th anniversary of 9/11. is this what's in the news? no, we're debating about facts that may politically harm rom y romney. i don't see that what he said is incorrect. >> we'll see. the economics of this whole thing behind the comments we want to look at as well. a fact check, of sorts. what about that, donald? does that wash with what romney said? >> we estimate that about 46% of americans, households in 2011 didn't pay federal income tax. that's driven basically by two things. first of all, if people have low

let's get rick santelli's take on it. rick? >> i think you nailed it. i think there is a bit of a water balloon metaphor or analogy to this as well. the federal reserve has a giant water balloon and they are trying to manage it. that represents all the markets in the u.s. economy. they are trying to squeeze it to use quantitative easing to help asset prices mostly in stocks. what happens is the distortions are going into the second derivative. it gets very difficult to tell risk on risk off what's real, what's memorex. simply the issues in europe are the poster child. the u.s. has similar ones but the issues are running much ahead of the cure or medicine. the deterioration in the economic horizons, whether france is moving into recession, spain moving into junk in terms of ratings agencies. those are real world economic fundamentals causing the treasury market and the safe harbors to reprice again. what's fascinating is if you look at a chart today we had new home sales. wasn't a bad number. best since basically 2010. if you go back to 2000 and look at

and, also, rick santelli working on the next hour of "squawk on the street." u, rick. >> good morning, simon. as we get closer to putting the tomb stone on quarter 3, we look to quarter 4 and serve thinking what about the fiscal cliff. why the market really seems to not care and the analogy might be similar to, hey, have you ever had a little one afraid of the boogie man in the closet? that's what we're going to talk about at the top of the hour. is there a boogie man or not? government is big on nightlights. lights. have something very interesting in common. they have teachers... ...with a deeper knowledge of their subjects. as a result, their students achieve at a higher level. let's develop more stars in education. let's invest in our teachers... ...so they can inspire our students. let's solve this. [ male announcer ] at scottrade, you won't just find us online, you'll also find us in person, with dedicated support teams at over 500 branches nationwide. so when you call or visit, you can ask for a name you know. because personal service starts with a real p

cnbc anchor uh simon hobbs and cnbc's rick santelli. i don't want to spend the segment on this. i do want to begin with you, b.k., and ask you. stocks rising under obama. the stock market liked president obama. do they like his policies? right now with today's rally, clinton handing the baton. do they want obama to win? is that possible? >> i don't think so. since 2009 on the list of ten things i look at during the day, number 11 . uh today going forward i look at the two parties. i'm looking at tax increases or spending cuts which for me aren't the best thing for earnings dprout. this is a ben bernanke rally from the beginning. he did a beautiful job managing the delinchs process. let's hope we have the power to keep this thing going. >> rick santelli, thanks for staying with us tonight. double there is an obama factor in the stock market rally? stocks doubled since march of 2009. look, i have guys saying this to me. they are tweeting to me and they say, kudlow, you argue stocks cover politics and the economy. i do. i want to be fair. >> i don't think they rally in it in. i wou

. >>> let's check the bonds and the dollar with rick santelli in chicago. rick. >> good morning, jim. well, there's very little doubt that housing is a pretty important aspect of the economy. and time does heal. we see kay shiller continue to improve. how did it affect the markets? you will clearly see when that came out at 9:00 eastern, that's when we made our high yield for the day. that's when we crossed into negative price territory, lower price, higher yield. but it drifted off a bit. if you look at the boon, same thing. when you come to trading, you do pay attention to our data as well. same pattern they took out there with closing yield. it drifted further off to lower yield. it has always been about what's going on in europe from the germans' standpoint. and mario andretti on july 26, he affected or triggered that microphone activity based on this chart. ten minus two-year yields, the difference to spread in spain. and boy did it do what he wanted it to do. it's deepened dramatically but we are getting there where the 250 -- the last chart is the dol

equity strategist and rick santelli joining us from chicago. martie, let me kick this off with you because we saw an acceleration of selling in the final 15 minutes of trading ahead some of these key meetings. nervousness going on. what's your take on what happened at the end of the day today and why we saw selling in the afternoon ahead of these meetin meetings? >> i think it's really recognition we have macro issues ahead of us in europe, also our own fiscal cliff and i think that's beginning to overwhelm reasonable growth in this country. i think we're likely to see more bad news affecting the market over the short term disappointment in what the fed does also. >> eric, what about that, are we setting ourselves up for a failure given the fact the market has been doing quite well this year, certainly the momentum is on the side of the bulls, and yet we haven't seen a change to the fund mentals. it's all been hope the fed will act. >> that's a great point. at the hodges fund we don't know what the market is going to do between now and the end

. >>> to rick santelli at the cme.were talking a second ago, rib, the 30-year above the 3% mark. shout ten-year doing? >> i would say the equivalent of that 3% is the 180. ten year, t2%, easier. we are down a handful of basis point it is you look at the interdate chart. look at one-year chart. from the center of this chart to the left, you see all those bottoms around 180 yield, about where we are hovering now? those will prove to be resistance points i f we look overseas, the pattern is similar but 17 basis points missing, hovering around 163. they also to the left side of that chart have lots of bottoms at the 180 yield. so i would look for that in both markets to be very important to monitor. if you look at the ten-year minus two year in the spanish yield curve, july 24th, mario draghi, definitely looking at, going the wrong way, started out at 100 basis points. after draghi's comments, it steepened to 350, now back at 250. need to watch this last chart, everybody is looking at the euro, something strange is going o

let's get to rick santelli in the mix. i know fed wants long-term interest rates to go down but we saw a spike in the ten-year today. how did the auction do, rick? >> even though the fed controls a good chunk of the treasury market, what they want and what they get is still determined by the guys behind me. it was a 30-year bond auction. if you bought into it you are really hurting right now. but of course settlement isn't for a few so we'll have to say. i saw 2s get up to 25 basis points but that's not the real story. as you go down the curve the moves are bigger. 5-year, i saw 74 basis points. even though that's interesting, that only comps back about three weeks. winner of big movement is the 30-year bond. there's your steepening. it is because we're nervous about reflation, according to the traders, and you heard bill gross say it. that got up to one whisker shy of 3%. we haven't been up there since about the second week of may. 30-year's really going down, yield's going up. >> do we hit 3% today? >> i saw 2.9999% trade

rick santelli is here with a grade on the ten-year. >> it is going to have to simmer in my brain while i give you all the specifics. first this is a nine year 11 month auction. issuance we started last month. indirect average 42%. this was light at 36 and change. we take a grade off right away for the bid to cover on the light side. priced through right into new wi highs. this gets a c-plus for the ten-year note auction. >> yikes. on a day when the fed is meeting. rick santelli, thank you very much. >>> let's bring in all things digital peter copka into the conversation. stakes are very high for apple because the landscape is different than when it released its earlier versions. it is a more crowded market certainly and the iphone accounts for an enormous amount of apple's bottom line. they really have to deliver something that's spectacular. >> the iphone drives apple in many ways. apple did not have this territory to itself when it started. remember a company called blackberry, rim, they still exist. a company called palm that doesn't exist anymore. apple came in and dominated that r

we have larry blazer from mayflower advisers and our own rick santelli and mandy drury. larry glazer, you happen to believe that economically there's an iceberg dead ahead. this market doesn't act like it today. >> no, it doesn't. you can see today investors are so focused on the global stimlouse story that they're missing the big picture. the big picture is the fact that the economic data, particularly global manufacturing data, is absolutely rolling over. look at chinese manufacturing, down 11 months in a row. you hit the nail on the head. gdp, durable goods, all a sign of weakness. the problem is the catalysts are behind us and the icebergs are ahead. you've got the fiscal live, all these things looking at us for those reasons. it's likely investors have seen the highs for 2012 in the domestic equity markets already. >> where are you on this, david? i know you think things are improving, but the fundamental data doesn't show it. >> i think it's always -- it's time to take advantage of the fact that people are concerned, are nervous, are fearful of this fiscal cliff an

check in with rick santelli. get a tuesday editionst santelli exchange. ck. >> good morning, carl. when people say pro-choice, that's usually, you know, a social issue on abortion. i'm talking about pro-choice as in picking winners and losers or picking and choosing the type of behavior that a people or a citizens of a country should live or lead what type of life. of course, that comes from the top down. i think with tomorrow's ruling on the german court and entire idea of the ecb and their conditionality notion that they also are going to be picking winners and losers. consider, you know, sylvia has grate piece that goes into the nitty-gritty about she's always found great respect for the ecb. but she thinks conditionality has a lot of short falls and i happen to agree with her. picking which country whose bonds you're going to buy, whose funding you're going to influence is base od on a sest rules f california and all the states were independent, does one state have the right to tell another state what to do without representation? that's a form of taxa

tim holland, thomas lee of jpmorgan along with our own bri brian shackman and rick santelli. tom, you came out with a report today. i know you had a call with investors. talk to us about what you envision for this market. >> well, you know, what we're talking about is a phenomena that's really happened in each of the last three years, such as 2009, 2010, 2011. we get in towards the final quarter of the year, active managers, which is mostly mutual funds, are trailing their benchmark. in order to close that performance gap, which is the biggest since 1995, they have to buy stocks that will outperform the market, which is what we call high beta stocks. stocks that if the market's up one, they move 1.5 or 2. this has happened the last couple years. we think the phenomena will be bigger this year because, one, mutual funds are trailing by more than any other time in history. second corporate buy backs are substantial, and we're expecting them to be bigger this year because corporates don't really have an incentive to increase dividends because of unknown policy next year. also, b

we bring in lee moungton, cliff davis and our own rick santelli. gentlemen, good to have you on the program. thanks so much for spending the time. >> thanks for being here. >> lee, let's talk stocks here. what should investors make out of the s&p rebalance tonight? >> well, i think the first thing is what are the top things that are going to rebalance, apple, google, berkshire hathaway so instead of trying to find a way to game the system or find a trade, back in the 1990s you could actually make money doing that. right now investors need to take a step and think the market capitalization of those companies have really expanded so you have to go on how much more can apple do it. again, i'm kind of like dave before. i own some apple but i don't know if i want to keep running, so investors need to know why and what is being rebalanced versus trying to find a trade in it. >> yeah, but, i mean, when we know what's being rebalanced. do you want to follow that? mean, do you want to follow the people that have -- have sell orders to sell coca-cola over th

our steve liesman and rick santelli join us as well. debora, i mean, you're right. we are sitting here with a weak economy, a bad jobs report and the stock market just continues going higher. what do you make of that? >> my general feeling is that we've started to get past europe. jpmorgan said they're overweight european securities. if we were going to get selling, we would have seen that on friday. like you said, that was a terrible jobs report. we've been in this europe situation for three years now. they've had meetings and meetings to discuss meetings. so, we're starting to feel, you know what, it's going to be okay over there. ben bernanke, he's going to stay they're going to do whatever it takes. they're concerned about jobs. the same old thing out of him again. again, when we look at septembers, going back 62 years, 27 of the septembers have been up and 34 down. this may be the time we'll have number 28 september up. >> bill, bill, can we have a discussion about what the world would look like without the european anvil hanging over our heads? i'm afraid to i

rick santelli, can you square the question? again, i'm not trying to belabor it, but unless the fed is saying we're the reason things are going to be better, i'm trying to square this idea that fewer of them see a rate hike next year but they're upping their growth outlook or am i completely off base? >> no. matter of fact, compared to where i am, you're right on base. i don't think even in a good normal year the fed could be accurate in a prediction two or three years out, much less in the times we live in. i still don't understand why the stock market being up 172 is going to make anybody who doesn't pay taxed which we need to lower the deficit because they don't have a job. i don't know how that situation is going to change. take it a step farther. i see the option adjustment spread, the bond rate is probably going to be lower but there aren't enough people able to re-fi. we'll go through this again. if low rates was going to cure the ales of housing, it would have been on the mend much faster. people that are going to re-fi

i'm stating facts, maria bartiromo. >> thank you, rick santelli. you're the best. we'll see you soon, gentlemen. thanks very much for joining us. so what happens to a stock when it enters the dow industrials? will united health care get a boost long term? bob joins us now. >> it's one of the great wall street chestnuts. stock goes into the dow, it does terribly afterward. it's not really true. although, there are a few recent examples. look at bank of america. february 2008, bank of america replaces altria. ouch, that was a bad one. it's not in the dow anymore. bank of america is down about 75%. there are other switches that were really good. kraft came in and replaced aig in september of 2008. since then, aig, well, it's been down 46%. kraft has been a great performer. look at that stock. that's up about 15% since then. travelers is another one. they came in and replaced citigroup. that was in the height of the crisis, june 2009. that, too, has helped the dow. travelers up more than 56% since then. citigroup hasn't really done anything. finally, another recent one

. >> now to rick santelli to see if we get the fifth month of contraction. rick?and you're a smart man, fifth month of contraction, but it was a much less, much smaller contraction than we anticipated. we are looking for minus four to minus five. we ended up with minus 1.9. let's do a little historical perspective. the last time we had a run larger than these five negatives in a row it took you from '08 to '09 in a run that has ten negative months in a row. if we look at leading indicators, a little older, philly was exactly as suspected. the data seems to be out. stocks have not changed much and interest rates back down to pre-statement on the 13th levels. back to you, carl. >> speaking of which, we'll get a lot of feds to speak today from lockhart, pionalto and others. >>> when we come back, howard schultz joins us when "squawk on the street" continues. [ male announcer ] for the dreamers... and those well grounded. for what's around this corner... and the next. there's cash flow options from pnc. solutions to help businesses like yours accelerate receivables, m

. >>> rick santelli is at the cme group in chicago. ng, rick. >> reporter: good morning, melissa lee. i tell you what, we could say one thing with absolute certainty. if you looked at durable goods and gdp, they were not good data points. arguably, the initial jobless claim, even though it's still in the zone, moved lower. that wasn't a bad piece of data. but how did the markets react? you know, bob was talking about this rally as unloved. no, it isn't unloved. it's a bit misunderstood for the following reason. after those horrible data points, what should markets do? interest rates should be going down. look at intraday chart of tens. at 8:30 eastern it didn't go down but not to negative territory and it's back. yields are higher. the boon, similar with a caveat. yes, its yield went down, under net change for the day. that made sense, but boom, it's back to unchanged. you can see the similar pattern. so why is it? well, it's because of the next chart. here's the s&p futures chart that was open at 8:30 eastern. it trades down to around

rick santelli is at the cme group in chicago. rick? >> thanks, jim. with the fed meeting this week in supply, $66 billion, threes, tens, 30s, let's see how the interest rate markets look both here and overseas. mai 1st start, that's a good one. i'll tell you why. it encapsulated this quasi-range that we've moved into. on the 24th, low yield close at 1.38. mr. draghi pulled out the verbal bazooka on the 26th. if you look at the bund, its historic low closing yield was on the 20th of july, right around 1.17. so they're 37 basis points above that. patterns looks fairly similar. bund yields are a little bit more to the upside, downside in price. how have currencies been affected? the dollar index at the lowest level since about the second week in may. this is very important. the dollar's had more damage as we get into this q.e. mode than the euro currency. euro currencies at the lowest level since about the third week in may. but the premise is the same. even though on a dollar for euro basis, we should see more of a quantitative easing move on the euro,

. >>> rick santelli has a big half hour coming up, let's get the santelli exchange first, though. rl. is it fair? remember, that's the question. and we're going to give you a chance to vote on this piece and tell me whether it's fair. now what is the it? let's take a bit of a walk through time, first of all yesterday one of our great reporters at cnbc, robert frank, wrote a great piece, romney fund-raiser host use controversial attack strategy. i read it three times and opens up a lot of things that i did a little further research on. first of all this event was held on may 17th, so may 17th we have this fund-raiser. why is this an important fund-raiser? this is the one where it was caught on tape and even on video about mitt romney's comments about the dependency society and the 46%. okay, may 17th, remember that, also remember the person hosting this runs a private equity firm called sun capital partners, his name is mark ledder and along with his private equity firm and a variety of others, about a dozen, they're getting investigated for what is being called controversial tax im

rick santelli, what about that? does that change in 2013 because of the fiscal cliff issue? >> you know, as i start to list all these things that can change on december 31st, i know we're all okay, it will all work its way out. but it's such a long list. i mean, personal rates up to 39.6, deductions, exemptions, alternative minimum tax includes many more people, death tax, marriage penalty, capital gains from 15 to almost 24, almost triple of dividend taxes from 15 to 43, obama care taxes, higher taxes and fees. to me, even though most traders i talk to say somebody's going to cave, we're not worried about it. i think depending on how the election goes, november 7th could be one of the busiest, most wild days in the equity indices since the flash crash. >> yeah, it's going to be busy for sure. thanks, everyone. we'll keep watching the story of stocks. be sure to catch rebecca and the "money in motion" gang this friday, every friday on "money in motion" on cnbc. >>> this market trying to shake off the monday blues. courtney reagan has been front and center at nyc. >> the dow

pension partners michael gab join us, and our own rick santelli. set the table for us and what it will mean. >> i thought you wanted to hear about my weekend that comes between now and next week. >> fishing, fishing, fishing. >> then we're going to come back and look at the weekend and how economists may have looked at their gdp forecasts. the earnings were not so great, the hourly earnings in the report this morning. i think there will be a sense that consumer spending could be coming off. we'll find out what that means for retail stocks. then the fed will meet and my expectation is that the fed will certainly probably increase the guidance or lengthen the guidance out there in the statement, and secondly i think they will offer an open ended qe program. >> stephanie, what are you doing with the market at this point? are you impressed it held in or disappointed? >> i think it's impressive and you have a lot of people still fighting and chasing the tape. with europe getting off of the front page for now, china to me, that move last night and this w

but is this likely to happen because our economy is not better -- >> we have steve leisman and rick santelli. the jobs report was not pretty, are we still maintaining the levels that we've got because of hopes of the central bank acting next week. >> yeah, i think it's a global liquidity, and i think the behavior all argue for that premise. steve tough to find silver linings but they revised june and july as well. >> yeah, it was pretty uniform, normally you find some that tell you look at this this way or that way. the only thing i can find good about it is most of the job losses were concentrated. manufacturing on one hand and government on the other. manufacturing was a snap back. i just want to show you this graph we put together here. this shows the range of estimates. the blue line is the median and the green is the actual. did they miss by a lot, no, 96,000 is a lot weeker than the 125 -- i bring this up because some people were quite a bit higher and there was a question if there was a higher number on the street. >> steve, you said even if this was a good number today, then the fed

rick santelli is right. >> did you just say rick santelli is right? he might want to payroll that. >> he is. rick is right. this is an example, a crazy idea like that, why we should just take the pain. >> that's the first time he's been right, you're saying that? i don't understand. >>. >> no, but maybe rick can add that to the wall. the becky support. >>he inspired the tea party. here thing. read the push to let ryan be ryan. what does it say? read it out loud? >> yes, i read this article. >> what does that mean, though? >> the article is called -- this is the promotion. >> what does the last line mean? >> push to let ryan be ryan, some conservatives are second guessing how paul d. ryan is being put to use in the presidential campaign and another line here. and that is a mistake. >> you noticed that somewhat does that mean and another line here? i read it and it's like -- is that some kind of -- >> i thought it was going to be about the article itself. >> what does that mean, and another line here? >> it means that there was an editor or somebody who

rick santelli, you guys must be waiting for tomorrow, right? >> we, i'll lel you look at what all of the traders are looking at. as you start to look at the markets, what really jumps at you is that ten to two year spanish spread is now even steeper than it has been, and it was the flatness that concerned them. it's been successful. it's the fixed income markets that have counter moved. long and short story is that mario draghi did what was at the right levels and the right anxiety points and the market has been passive and not active. we could see a lot of action tomorrow, and many traders president it will be probably a bit of a disappointment. >> what are we waiting for, rick? what are you looking for out of draghi? what will it take to stabilize these markets from the europe standpoint? >> well, from the stableization, their going to look at things like sterilize. we went down with the twist. we're buying -- >> what does this mean, i'm seeing sterilize all over the headlines, what does it mean? >> it means the effects of the balance sheet o

let's get dollar and bond reaction from rick santelli in chicago. rick. >> well, we knew it before.intraday dollar exchange index, remember, it started to deteriorate well before that statement was read. i saw it start to deteriorate down six, down seven, down eight. after statement it goes down. we'll call it 3/8 of a cent. it's basically unchanged. the gold market started deteriorating. before the statement i saw it down about $7 and i saw it rebound about 16. it split the difference. it's up about 8. very volatile. if we go to the yield kufr, we were johnny come lately" yield curve. we're about three basis points on a five, four basis points on a ten and up about eight basis points on a 30-year. steepening, steepening, steepening, just what everybody including bill gross has been talking about, and stocks -- it's all supposed to be about stocks. say up 102. now i see up 35. seems like there's bit of overpriced into these statement reads and agency securities, they stopped buying them a couple of kwr es ago because they're scarce. that's always fascinating. >> they always say, ric

thank you so much. >>> let's get to rick santelli in chicago talking europe, as well. rning, carl and peter, good morning to you, as well, but i want to do a -- before i bring you in. but i see a lot of similarities between the behavior and what's going on with this strike. versus what central banks are doing around the world. teachers are making $76,000 in chicago, now over $100,000 in the suburbs joining in the strike and it isn't so much the money. they want all of this but don't want to be evaluated to see if their performance warrants more money. peter, do you see similarities? a lot of people around the world whether it's greece, funding in different countries. they want the benefit of printed money even though it comes from basically bankrupt entities, just like the city of chicago and the state of illinois! >> no, you're right, and central bankers only want you to read part of their report card. you heard bernanke a few weeks ago -- >> exactly. >> defending his policy. but his book is not written until his policy is reversed. on one side he says, yes, the polici

carl, back to you. >> rick, thanks so much, rick santelli in chicago. worried, should you be worried, too? why the nation's executives are feeling more glass half empty lately, the business round table survey result when is we come back. how do you know which ones to follow? the equity summary score consolidates the ratings of up to 10 independent research providers into a single score that's weighted based on how accurate they've been in the past. i'm howard spielberg of fidelity investments. the equity summary score is one more innovative reason serious investors are choosing fidelity. get 200 free trades today and explore your next investing idea. if we want to improve our schools... ...what should we invest in? maybe new buildings? what about updated equipment? they can help, but recent research shows... ...nothing transforms schools like investing in advanced teacher education. let's build a strong foundation. let's invest in our teachers so they can inspire our students. let's solve this. thank you, mr. speaker, uh, members of congress. in celebra

. >> thank you, rick santelli. >>> coming up next, apple reportedly planning its own internet radio servicendora killer? we'll talk about that right after this. >> announcer: cnbc program sponsored by america's natural gas alliance. to supply affordable, cleaner energy, while protecting our environment. across america, these technologies protect air - by monitoring air quality and reducing emissions... ...protect water - through conservation and self-contained recycling systems... ... and protect land - by reducing our footprint and respecting wildlife. america's natural gas... domestic, abundant, clean energy to power our lives... that's smarter power today. we create easy to use, powerful trading tools for all. look at these streaming charts! they're totally customizable and they let you visualize what might happen next. that's genius! strategies, chains, positions. we put 'em all on one screen! could we make placing a trade any easier? mmmm...could we? open an account today and get a free 13-month e ibd™ subscription when you call 1-888-280-0149 now. optionsxpress by charles schwab. >>>

that would have been better than that last segment with steve, simon and michele is if this guy rick santelli was there to join us. let's talk to rick an see how bonds are reacting to the news from europe. go ahead, rick. >> very fascinating and somewhat predictable. we are up about 7 basis points. open it up to january 1st, and this is fascinating, here we sit and we made the yield high in march around 240. low in july around 140. and here we sit on 167. definitely skewed to the low end of the range. how did europe fare? very similar. the benchmark 10-year up 7 basis points from the 24-hour chart and then very similar on the chart. here they sit at 155. the your ro currency is a big surprise. had a bunch of u-turns and trading at 126.30. should it close here, it would still be a fresh high close going back to the beginning of july. so the bazooka is working, sue. back to you. >> so far anyway. we should note the dow up and transports almost 100 points which brian, as you know, would confirm some dow theories. >> absolutely. you know, obviously, we wonder where we go from here after rallying

rick santelli at the post tracking the action. we had a rally early on. has it held, rick?well, i tell you what. just amazing. and i think the best way to get in to this conversation is to remember sharon epperson was said. four-month high on gold. the chart, please. 24 chart of the dollar index at 8:30 eastern when the data came out. sayonara for the dollar. that's a four-month low. you see where i'm going. show that chart going back to may 1st and bye-bye on a lot of markets. the 24-hour of our 10-years at 8:30 eastern, 15 basis points. bye-bye. we went from 173 down to 158. granted it's come back a bit. anything different overseas? no. bye-bye to 10 basis points quickly and trying to handicap quantitative easing on the dollar versus the euro, the size of economy, that makes sense but sometimes the markets don't make sense and many think that the gold and dollar does. back to you. >> all right. rick, thank you very much. >>> of course, discussion today very interesting day of economic news, market activity and political reaction. august jobs report below estimates. jobles

rick santelli with the wednesday edition of the santelli exchange. watching the debt clock yesterday. 16 trillion. >> i was. you know, it's funny because this week i spent a little time being on vacation with the family at disney world. and about the time i was hearing about a 16 trillion cross to the debt clock i was also hearing a commercial in my ears throughout the park. the commercial was about the new movie "finding nemo 2" i guess is going to come out. what i found fascinating was one of the lines in the commercial. it said something like this. it's very difficult to find one fish out of the 3.7 trillion in the sea. so i tried to really do some research to see if anybody could quantify that there are 3.7 trillion fish in the sea because it seems really low to me. i didn't have a very good time of really researcher that and telling you whether or not it's true but you see where i'm going with this. we crossed the 16 trillion. 12 zeros as carl pointed out. so whether there are 3.7 trillion fish in the ocean or not here are some facts to try to p

. >> we have forgotten, i think, including we in the media, that the tea party started with rick santelliho is a reporter from cnbc complaining about dead beat homeowners. the tea party movement itself was wall street people complaining about poor people or people who were in trouble financially. >> but it took -- i think it took root because of some actual genuine anger at the banks. >> right. >> i totally agree with you. >> it's so ironic. >> we lose sight of that. it started against the banks. no, it started yelling at homeowners, loosers in rick santelli's words. >> exactly. >> there is an opportunity to split the republican base and the donor base. honestly, there are people in the hedge fund base who view this as a business opportunity because they think it will clear space for them to get into business because the banks won't be in there. there is a message that could be crafted that would have a financial base and would appeal to a lot of voters who see the banks as having gotten a free ride. i think jon huntsman tried to be in that space. >> he got nowhere. >> i'm writing him in.

>> yeah, that's something rick santelli has been talking about today. what are you expecting next week, rick? >> i think from a data side, i always enjoy when we get a couple housing numbers, existing home sales, starts. that's going to be good. i also want to see how the market digests what happened yesterday with the fed and what is ongoing with regard to europe. i haven't been or wouldn't think that we'd see a big correction in stocks. although, i'll tell you by the behavior today, i'd be a little more cautious. feds and central banks around the world have always tried to leave their imprint on interest rates. i find it fascinating that the market, despite all the ownership that the fed has in terms of inventory of treasuries, for example, to see rates move up as much as they are, knowing how many out there are still long makes me a bit nervous that this could gain momentum to the up side. i don't know if 2% is going to be challenged, but i think based whoon i hear from investors, should it get above 2%, you're going to bring in a whole lot more sell

thank you very much, rick santelli. >>> so our jobs, the single most important issue in this electiont's ask jared bernstein and tony frater. both of you are cnbc contributors. thanks very much for your contribution today. tony, what do you think is the most important issue in this election? number one, what ought to be the most important issue? >> oh, great. su i think it is a no-brainer. there are a lot of really important issues for different subsets of the population out there, whether it is immigration or foreign policy or spending and the deficit. the number one issue, what's the most persuasive issue for voters in this election is really job creation. which candidate out there can talk about a plan going forward that would really create jobs going forward. what ought to be the number one issue, the most overlooked issue, an if you follow me on twitter, you hear me ranting about it every now and then, this crisis that we have in high schools of dropouts. here's a statistic, mandy. of all of those chicago school students that went back to school yesterday, about 40% of them will

rick santelli live from the floor in chicago. hi, ricky. >> hi, sue. indeed. you know, markets are definitely not going to wait forever but they're certainly waiting now with the uncertainty of what mr. draghi will discuss in the morning. we look at a 24-hour chart of 10-year yields, mid-150s and 160 and darn close and now one point above unchanged at 158. open it up to a month and clearly see the low end of the yield scale over a month and contrast wit the european's safe harbor trade and up about 9 basis points today and a 1-month chart has a different pattern. the difference between the two hovering around a dozen basis points about the narrowest in about five weeks. we need to pay attention. euro currency. we are still above or at 126. the high of the day is 126.25. two months, the euro seems to be the beneficiary of the microphone close to a two-month high. tyler, it's back to you. >> mr. santelli, thank you very much. now kayla for a market flash. hi, kayla. >> hi, tyler. the tale of two stocks and the tech market is concerned. first, disney touching an

rick santelli has the latest from chicago. >> thank you very much, simon. if we look at the $35 billion that has new owners today, investors, the ultimate yield is .647. where was the one issue in market trading? .655. so 65 1/2 on the bid side offered at 65. this is a lower yield at the auction. lower yield, higher price. this was firmly priced. all the metrics were solid. bid to cover, 3.06 high. 42% indirect. pretty much spot on with ten auction average direct. 10.7 also close to the 10% ten auction average means dealers took more than 47% of the auction no matter how you slice it, it gets an a for apple an the demand side of $35 billion, 5. back to you. >> the ten-year yield is back down. oil breaking below $90 for the first time since august. but conversely, gasoline prices are spiking because of refinery explosion. sharon epperson is tracking the action. >> we are going back to prices in august for oil and gas, but they are going in doctor different directions. the euro zone crisis far from over. that's what traders talked about, part of the reason oi

now out to rick santelli at the cme. i'm sure there was much in that discussion that intrigued you, rick. >> there was a lot as a matter of fact. but i have to tell you many of the people i talk to are skeptical. but yet they're still trading as though they believe it. and that's the unique aspect. look at the charts. 10-year note yields. yields obviously moved higher when the spanish news came out. yields moved higher. in both instances you still didn't get up to unchanged yields from yesterday. both markets are down on the week in terms of yield. look at the euro currency kind of similar. there definitely was a bit of a delayed rally in the euro but it couldn't get up to unchanged. where it sits at 28.75 is the far cry from the 2980 it closed last week. the next two charts are fascinating. like frick and frack. the first one is year 2 of the ltd. that's at all-time highs. but not so long ago the xyg the high yield was more in vogue and that is slipping a bit. i always find it interesting in a world filled with liquidity

also in the conversation, our own steve liesman and rick santelli. >> we love it near term. the only thing we're not certain about, and there's questions about whether this is the all-clear sign for the kind of price earnings mull. expansion we've been looking for. we tend right now to doubt it because the economy is slow. you have your fiscal issues. corporations are still sitting on the sidelines waiting for resolution of the tax and regulatory policies. they're the ones that have to spend to really bring the unemployment down. we don't know how much ben bernanke and the fomc could do about that right now. >> steve liesman, what do you look for in terms of the next catalyst here? will you be focused on how this market trades as the fed is buying that $40 billion in mbs a month? >> you know, i think a new important barometer is going to be actual mortgage rates. then the housing market. it looks like ben bernanke wants to to try to get the economy going. we also know that automobile sales have been below the historical average. that's another place you could look for sort o