ed batowski, nathan bachrach and our own rick santelli and steve liesman. he gdp report. now the federal reserve points to it as it confirms it will keep current easing policies in place. is that a positive or a negative? >> well, i agree with them. the economy is still weak. i disagree that the medicine they want to continue to address the weakness is working. i continue to say that if you have structural issues and you apply cyclical-type band-aids you're going to end up with a lot of debt but not a lot of growth. if you look at the next couple of charts, this says it all, i think. we're all trying to dismiss this number. here's real, not nominal, real government consumption expenditures going back to '07 pre-crisis, and you can see that they really ramped up. now, if you go back

then rick santelli. bob, yes, another blow to investor confidence and the man versus machine today, right? >> yeah. a little bit of problem with trading. that's a bit of an issue. i think the important thing is that these trading problems are around for quite sometime. it is coding issues and there's a problem with getting access to the incredibly problem information and sorting it out. i just want it make a quick comment on the earnings situation because the important thing is, only 5% of companies are reporting. but so far, some positive comments. here is early comments we've gotten numbers from, oracle, fedex, costco and they all had positive things. just a quick comment on where we are going from earnings. so far, 5% of the company is reporting. it is very, very early. but good news so far is record earnings from some companies putting up that full screen. i will show you a trough for earnings in the third quarter. i think that's very important. bad news here, mandy, we are still not getting any kind

that's what we're focused on rather than trying to get the market direction perfect. >> rick santelli, what are you seeing inters of the energy complex there, in terms of trading on that floor? >> well, i'll tell you what, you know, there was a comment by jeff cox the last hour talking about, you know, we're getting close to $100 oil. it doesn't seem to be having an effect on the market. traders here mesmerized by the lack of interest in the marketplace in the recent geopolitics period, so i do think that there's a whiff of commodity-type, energy-type inflation. i think the ultimate independence regarding energy, the greens aside, is going to be somewhat of a balancing act in that regard, and in terms of tomorrow's number, you know, it's always about jobs, but there's going to be a lot more digging in these reports. remember, it's not only going myself looking at labor norse participation rate with the trigger of 6.5%, i think ben bernanke is going to at least weigh in on what's real and what's memorex in terms of any drop in the unemployment rate. >> i want to get back to the energy

rick santelli, your take on this day. your landscape is bigger than just equities. treasury yields have been ticking up. currencies are going higher against the dollar and oil is going higher. what do you make of what's going on today? >> well, one thing just said that has a common denominator with all of those, of course, is liquefying and central bank activity whether it's bank of japan, europe, we see interest rates are up. went from 180 to testing 190. the bund violated 160, hasn't done that for a while. europe's growth is calming down and foreign exchange, all about whose printing press is faster. breached 120 on the euro, a big deal. breached 90 on the dollar/yen so the japanese are definitely devaluing their currency, but to be fair, it was just last year that the dollar reached a record low on the end, so if you take a wide enough view, you know, the japanese aren't mistaken, say, and they are just trying to price it more accurately. the problem is once this machine gets going of printing and weakening, how does it ever stop? >> yeah. how much of this rally

rick santelli, how do you see it?you think we'll see a similar story when we get the jobs numbers out on friday? >> i think the jobs numbers will be spotty. i find it fascinating. not one person has mentioned adp so the gdp moved adp off the front page and below the fold. listen, the reason we have fair value is the s&p cash, for example, closed at 4:00 eastern. the futures just closed at 4:15, and if we can show a chart s&p futures right after the cash close, they made new lows and closed within three-quarter points of the new lows. might give you something to look at for tomorrow morning. >> thanks, gentlemen. see you soon. facebook shares moving on the heels of the quarterly result. let's get to seema modi recapping the latest action in tech. >> reporter: all eyes on facebook and its earnings report. a beat on its top and bottom line. mobile active users also up. seeing the stock move lower though after hours. remember, the stock has already gained about 30% over the last three months, so perhaps we're seeing the s

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back to you. >> thank you very much, rick santelli with the latest in the bond market.el and ebay kick off terk earnings this week. we get strong indications of retailers and pc makers perform during the holiday season. john fortt, one of the hardest working guys in tv is back now. he has a preview of those numberes. hi, john. >> hi. usually they are back in the main earnings pack. ebay is out first on wednesday. wall street looking for 69 cents. revenue just under $4 billion. marketplace wondering if e-commerce is as healthy and on paypal, total payment volume a year ago is up 5x over the year before. another huge jump. not as big percentage wise. then intel on thursday. wall street wants eps of 45 sent on revenue of 6 billion down from a year ago on top and bottom lines. things to watch, with the windows 8 launch, how will it fair in gartner expecting a drop. we will gets hints about microsoft, hp and dell, among others. guys, back to you. >> thank you. talking about where the smart money in technology is heading. once again, joined by an internet pioneer, angel and p

rick santelli has some thoughts on that this morning. ome, congressman. >> good morning. >> let's get acquainted a little bit with your voting record just so viewers and listeners can frame where you came from, maybe help decide where fiscal conservatives are going. did you vote for the original bill or where the threshold was a million on the tax cuts before the fiscal cliff deal? >> that never came up. >> that's true you were right. >> that was option b that never came up for a vote. >> it failed, you're right. can i ask you off the record while you're on tv, would you have voted for it? >> i probably would. we're dealing with the dynamic how to protect as many americans as possible from the tax increase. the tax increases don't help our economy so we have to find a way to protect as many people as possible. >> did you not vote for ultimately the bill that really was voted for and that's the fiscal cliff compromise, you did not vote for that. is that correct? >> that's correct. that's correct. at the end of the day it doesn't help us so

jim bianoc and our own rick santelli. jim, i want to start with you. where do you -- you have some opinions on what deals like this if in fact there is a dealing in the offing for dell, what it says about where we are in the cycle for these markets. >> yeah. if you get a lot of deals like this like we saw in 2007, 2008, there's a high in the market when b you get a tremendous amount of deal activity. dell alone is not a tremendous amount of deal activity. but if it kicks off the activity, i would be worried ae tharkt is at a high. >> ralph, i want your opinions on the market here. when everybody was doom and gloom you said you wanted to be buying stocks. and you were right. this market wants to go higher even in the face of things like the debt ceiling debate and a global slowdown. if you had to call it a baseball game, what inning are we in? >> i'd say the second inning, third inning. there's a lot of left. >> wow. >> this is the year of all-time new highs? >> all-time new highs? >> as we speak. >> all-time new high for the nasdaq would be 5,000, righ

let's get rick santelli thoughts on that. >> good morning.g away with a group of your colleagues. i like to welcome in andy brenner, first time he's a guest. very outspoken. andy, like to read what you have to write and say. when it comes to continuing resolution, sequester, debt ceiling, oh, my, you have some thoughts. maybe you could run this through how you see this playing out and maybe if we're a fly on the wall at this retreat in williamsburg what might we hear from the republicans. >> thanks. what we're picking up is the republicans are probably going to back away from challenging the actual debt ceiling in that it's just not good for them. i mean they are very concerned about the debt to gdp and the budget deficit, which are running at roughly 101% and 8 to 10%. we kind of look like spain looks right now. if anything we might be worse. but what i think happens is the republicans have two shots. march 1st is the sequester where they can challenge or what we think will happen they will wait until the march 27th continuing resolution and

. >> i want to get to rick santelli. he had an auction that went off the board. how does it look, ricky. >> doesn't look bad. we'll give it a grade in a minute. one issue market at 1:00 eastern was 89 basis points bid offered at 88.5. this yield on the auction .889, on top of the side of the market. close to the 10 auction affair, 397 on the indirects. we had 16.8 on directs, which is a little better than 13% 10 auction average but nowhere near the 30 we had last look. remember, directs have been very powerful. all in all, this was another b auction just like yesterday's two-year note. tomorrow is the last of the 99 billion in the seven-year note. back to you. >> thank you very much, ricky. speaking of the bond market, you see obviously the fact we're now just 55 points away from the dow 14,000 mark. if this market does keep moving above that, we see bond money rotate into the stock market. lpl financial put out the statement as part of a note overall that he puts out. there is no evidence, he says, of a rotation from bonds into the u.s. stock market yet. the onl

bob bob pisani at the nyse and rick santelli. bottom line, bob, is it going to help or hinder the markets? >> i think it will be a head wind only because prices have moved up ahead of that partly on resolution of fiscal cliff. partly on the fact there is so much liquidity out there. let me show you the dow. declining to advancing stocks. less buying interest but remember what happened last week with huge buying interest. most major sectors on basically all of them down fracturely. there is a pretty even distribution energy is the weak one today. gold and gold stocks have been weak today. all of the big gold names. harmony down 5%. shutting down a big mine in south africa. a lot of labor unrest out there. i know brian was talking about the rodney dangerfield rally, the lack of respect, let me second that. put up what happened. last week we hit five-year highs on the s&p. historic highs on the russell. historic highs on the mid cap. historic highs on the mid trans ports. and what we saw, nothing. quiet as a pin drop. no respect. >>

rick santelli at nyse. hi, rick. >> we were close to 197 1/2. we closed last week at 170. it's been 22 basis point week and for a while over a quarter point. that's pretty large. if you open the chart up, 194 is about the cusp. whether when we close today we are at highest yield since later may or late april. you can see that chart. now sometimes when the treasury market sells off aggressively, it even catches markets off guard. not only investors. think about high yield investment grade. if you look at the inest vmt grade index, you can see the knee jerk reaction is a narrowing of the spreads because corporates didn't sell off as aggressively or look at high yield, same dynamic. you have to monitor over the next day's weeks to see if catch up does incan occur. >> the fed president james bullard talking about when the feds will raise interest rates. here is what he said earlier to steve liesman on "power lunch." >> if you are close to 7%, then you are within a half point of your 6.5% on interest rate side. and i think clearly the intention is to pull back balance sheet pol

rick santelli is in chicago. hi, rick. >> thanks, jim.f ten-year gives you the picture. yesterday was a pop in the equity markets. issues in europe. we touched at the top of the closing yield range around the 190s. here at 180, we're basically down several basis points on the day, but unchanged on the week. you see a boom very similar, pattern yesterday was a little bit different. it accelerated a bit to the downside and the yield in the mid-160s. this is a catch upprocess, so to speak. now, if we move to the foreign exchange side, bob was talking about what a great day japan had. and they did, unless you were long their currency. you can see, hey, we've breached 90. if you open the chart up, 30 months to the summer of 2010, it's been 30 months since we've had any closes with a 90 handle on that cross trade. does it end there? no, i could show you a variety of currencies against the yen. we'll pick the one we've been talking about for weeks and it's been a home run, the euro/yen. we're not at the best levels of the day, but it is a friday

rick santelli is in chicago. 2011, i did a white board, and i took eight zeros off the national debt clock. that's become kind of popular. there's a quick view of it. i'd like to update that with current debt clock readings. once again, sufficient tax revenues, $2.4 trillion, remember, trillion is 12 places. federal budget, $3.5 trillion. national debt, $16.4 trillion. recent cuts, this is questionable. because not counting moore's, i'm not so sure. that's still the same number that was on the original board. of course, we took away the eight zeros. let's do that. we're taking away the eight zeros in every case. i'll tell you why we're going through this exercise again. basically, what that leaves us with here is, and we'll get rid of all the non-descripts, about 24,500 on the family income, about 35,000 on the debt of the -- or excuse me, the budget of the family. around 10,000 in new debt. the current debt is about 164,000. and we're only cutting about $385. but let's go to recent reads, okay? the recent read i

rick santelli at the cme group in chicago. good morning, rick. >> good morning. we had two bits of data out today, one adp, better than expected, talk on the santelli exchange around 10:50. the other bit of data, a bit of a rise on initial jobless claims. with the holiday season affecting both and the temporary workers side, fascinating to reconcile these, the way the ten-year did it boom, adp yield moved up, on the jobs, it moved down on initial jobless claims. so now, we are one basis point below the 184 sell yesterday. open the chart up to may 1st you can pick it out, hovering at the highest yield close since mid-september but really, very close. should we get close to 190 or so to comp it all the way back to may. now, all about fx this is fascinating. look at a two-day chart of the euro versus the dollar. wow. the euro has gone from is 133 to 131 a big move. now, look at the dollar yen. granted. it's lost some ground. still at really lofty levels. is it the euro or the yen? let's explain that look at the two-day the euro versus the yen. interesting. that is gi

. >> thank you, rick santelli. shares of dell moving lower as more details emerging about the buyout talks emerging about the computer maker. what's striking, david, is so many people on wall street have estimates at what 9 company can be done at. >> it is not going to be 15, at least based on conversations i've had. details hard to come by until late yesterday. my sources indicating between 13.50, let's call it, and 14. that could change. but i think 14 certainly seen as the ceiling amongst the people i've spoken to involved in various parts of a complex deal, one driven by both the private equity firm of silver lake and more importantly by the man himself, that is michael dell. who will not only roll his 15-plus stake into any leverage buyout, but i am told as well will access fresh cash that he has outside of dell. not clear how much. to also aid in the equity raise, if you will. that equity raise had been a key question that i certainly had raised the math that it appeared they would have at least $4 billion, t

i think it will be equities for the next few years. >> rick santelli, that's what we've been seeing moneys this trade

markets in today's "closing bell" exchange by hank smith and steve from comcast funds and our own rick santelli. >> hello. >> good to see you guys. >> thank you so much for joining us. >> hank smith, we haven't heard from you in a while. let me kick this off with you. how are you investing going into all of these earnings coming out from the banks this week as ahead of that debt ceiling debate? >> sure, maria. our equity portfolios are fully invested. we see no reason 2013 can't deliver very similar returns as 2012 did. the fact is we still have a good fundamental backdrop. the economy is expanding. it's not contracting or growing. value sheets are strong and valuations are very attractive so what is there not to like? >> you're our resident skeptic today, and i would point not to the normal averages that we quote every day, but look at the dow transportation average which could close at an all-time high today. the transportation companies, often a leading indicator for the economy. if they are doing well. chances are the economy is going to get better. wouldn't that make you want to buy stocks

this is a fiscal ease. >> rick santelli, monster real for equities, but the selloff in bonds, treasuries, was modest compared to the buying we saw in stocks. what do you make of that? >> it was open up eight basis points higher, and it's been glued basically to 183, 184 ever since. i think personally there's a lesson to be learned by that. i think that the fixed income market may have higher rates, but i think that that may be a bit overzealous to think that they are going to be significantly high. i mean, we're up 308. all is fixed in the world. the president is somewhere in hawaii yelling four and the cbo is yelling 4 trillion more, and warren buffett's secretary still going to pay higher taxes than warren buffett, but everything is good in the world. >> hey, i've got a great idea. let's borrow trillions of dollars and make sure interest rates are zero percent and everything is going to be great. wait, didn't we try this also, and didn't it end in complete disaster? why do we expect something different this time? >> i'm not sure that you can argue that if you go back and look at what's

that's a really bullish sign. >> that's a dow fear, the oldest theory in technical analysis. >> rick santelli, we are approaching 2%, well, approaching. we're closer than we've been in the last few weeks here, but do you think we'll hit that? haven't been there in a while? >> i think it's possible. i find it fascinating that we seem to have 20 basis point ranges for long periods of time. in the beginning of the year it was 18-210. for much of the last four months it's been 160-180, and then, boom, we've shot through, so i think it's pretty safe to say 180 to 2% may be the trading range we'll have to get used to, but, remember, when you have a full cup of coffee, when you reach the tipping point, it's hard to tell. i think it's been more of a splash than a real tip. >> how but, stephanie link, like ralf, backing up the truck here on stocks, or is that nosebleed level in the ten-year yield frightening you? >> i'm pretty encouraged. i think that the fact that we got through the first part. fiscal cliff issues, that's a good thing. we have to get through now the debt ceiling, so i don't think it'

we welcome back our guests, including our own rick santelli and steve liesman. it's all about the fiscal cliff in that report, isn't it? >> taken by itself not a bad report, moderate to modest growth, real estate not doing too badly. all the comments, i didn't finish counting them up, but the word fiscal and uncertainty both appear several times in the beige book, and the clear impression, bill, is that uncertainty over the fiscal situation is already hurting the economy, delaying hiring plans, capital investment plans and really everything from auto dealers in cleveland to farmers down in texas have cited the fiscal cliff as a major concern. that's something that's influencing their decision making right now. >> you would expect that given the fact that everybody is in lockdown mode as we wait to figure out what our tax rates are going to be, where the spending cuts are going to be, that it is going to impact the economy. my question is how much of an m impact going to see earnings? are they going to get hit? >> that's the key to the whole thing. as we said, th

along with brian is peter anderson of congress asset management and our own steve leisman and rick santelli. you think it's going to be another good year of gains. target on the s&p 1575. defend it. >> well, we do. i'll remind everyone we were at 1420 last year. we base all of our analysis on fundamentals. >> you were off by a point. >> i'm sorry. >> a whole point. >> seriously. >> i'm sorry. but we think the fundamental condition of u.s. stocks remains very strong. if you take a look at the balance sheet strength, earning stability. fourth quarter earnings i think was a surprise to the upside. companies have been conservative of all these great things. no that we're done with this fiscal cliff situation, i think we do have a bit of wind behind our sails. however, we don't think that 2013 will be as strong as 2012 given the fact that so many people were underexposed stocks in 2012. we've had this kind of natural rotation back in. i think 2013 will be positive. >> but are we really done is the question. we've got the debt ceiling debt bait coming. peter, what's your take? >> well, i think th

a little bit more growth. >> let bring in the always calm, collected rick santelli. you can tell us why yields are going up as much as they are. i mean, this is very much a risk-on day today, but do you think yields go much higher? >> i personally don't 2013 is going to be the year for the big enchilada pushing rates dramatically higher. i do think they will have some elastici elasticity. up seven basis points since the last time we traded is still under where we closed 2011 and haven't seen 2% in a long time. believe me, gang, if we're looking for some kind of a solution to our problems on entitlements and overspending that isn't going to show us a contraction in gdp, then you really must believe in uniconscious. because all you have to do is look at the transfer payment effects on the gdp and understand those are where we need to make the cuts. i was watching one of those comedy shows, that kind of thinks they are a news show, talking about during the clinton years we had no debt. just the notion of a budget surplus versus a national debt gets lost on many. i don't

melissa lee, back to you. >> rick santelli, thank you.ck on the markets on the pack of the business inventories number. not much of a market reaction. fractional gains. this policy was the biggest move that we're seeing in the s&p 500 this year. >> if the s&p subpoena is down more than 47, 4.74, it is the biggest loss of the year. that's not saying much. but it's still the biggest loss for the nasdaq here today. >> it speaks volumes of what we see on a day-to-day basis. >> absolutely. >> we're seeing the biggest move in technology. that's mainly because of shares of apple here. >> let's look at what apple's done, falling below 488 a few moments ago, now back to 490. we're talking levels taking us back to february of 2012. 480 was the level on february 9th. so it's a good chance we're going to hang on to an 11-month low. we'll see. long day, still ahead. >> fitch ratings out with a warning that the united states could lose its aaa status even if the debt ceiling is averted. david joins us now live from london. david, good afternoon to you.

in the meantime we'll go to rick santelli in chicago with a very special guest. rick?me to my segment, grover. and i'd like to play some pepper versus long winded here. so real quickly let's go back and forth. were you pleased at the way it all turned out on january 1st with regard to the pledge and how it was dealt with on that vote in the house? >> well, given that the president had all the cards i think taxpayers did fairly well. of all the tax cuts 2001, 2003, amt, they were all temporary. 85% of the dollar amount, 99% of americans, got permanency moving forward. so, that's not what we wanted but a lot better than we could have ended up with. >> i like the way you framed it. president has all the fire power and i think you're right. >> he did. >> i think the pledge is easy to attack because it can't assimilate. you know, i think the u.s. has the greatest military, not necessarily because it has the most fire power but it has the greatest adaptability. so grover my question to you, being a fiscal conservative is, how are you going to adapt? the moral high ground arg

>> joining us john from cgfi group and rick santelli. rick, i'll go to you first. we're talk about moving treasuries. is 2% enough to push people in mass into equities? >> you know, i don't think so. i think the percentages are much higher, but it is a start. and keep in mind global inflows to equities global was about $55 billion. that was a record for january. if you look at global inflow of bond funds and bond etfs, it was a whisker under $30 billion. so there's still money going in, but not as much. and of course the anxiety of potentially healthy global economy is always going to give traders an excuse to try to sell what is close to some historically low levels of yield, high levels of price. >> yeah. and when you look at equities you see this huge move in the markets. are we taking a bit of a breather? jordan, how do you see it? >> i think it's been constrained. uncertain election and fiscal cliff. and all of a sudden people are starting to pay attention to the fact there are -- inflation's low. i think the market starts to run, forest run. >> not a lot of a

let's get to rick santelli in chicago with a look at how the bank of england and the ecb let news on mous blog and it free if anybody wants to read ira's thoughts. what secrets did they let news on? welcome to the show. >> really no changes. the interesting thing was in draghi's news conference, the question was asked to him and the most important question is what are they going to do more about the the unemployment situation in draghi said that's not his mandate. i was waiting to see if they were going to discuss nominal gdp because we know that this is now the new game. didn't quite get there but he alluded to to it. the second part, the guy asked a question, well, everybody else is trying to depreciate their currencies and we've seen it on the euro-yen. the guy asked that question, draggy's response i thought was almost laughable because he thought this is not going on. the g-21 gave us one commitment. >> i love when you're on, ira. greece is now over 25%, what is it 26 on the unemployment rate? portugal is in that 25 camp. the eurozone anding ing and agg 25%. i like your question,

economist" and we'll get his take and david kudlow from mainstay capital management and our own rick santelli. rick, i'll start with you because of the market response to all of this. the dollar went higher and yields went higher, gold lower. all the things that you would imagine would be an unwinding if the fed were to begin, removing some of the liquidity, right? >> well, it's not even removing liquidity. what we're discussing isn't that they are going to sell their inventory. it's that they would stop or refrain from purchasing any more sooner than expected. >> right, and as much as i don't like these programs, and i would be very happy if they did, i still think that we are jumping to some very aggressive conclusions about some dissenters that probably have been around, and the minutes give them a better venue to air their dissension, but in the end, you know, we only see lack or truly dissent when it comes to these votes. i think it's something to reckon with and a lesson to be learned. we jumped to eight-month high yields, not because the fed is making an exit but because the market is

rick santelli in chicago. go ahead, rick. >> thanks, jim.the charts, i didn't put a currency chart up, but obviously the dollar and many currencies are resuming, upward trajectory against the yen. keep a close eye on the 88 level of the dollar/yen. two-day chart of 10s clearly shows you we're losing altitude in terms of higher rates, lower prices. as a matter of fact, one of the reasons many are now putting forth that we had so much selling pressure early in the year and towards the end of last year was the huge corporate issuance calendar. about $15 billion yesterday. let's look at the markets from that perspective. if you look at the lqd etf and look back to november, you can clearly see that it is definitely not holding up towards the highs. but if you look at the high yield i yielding, different story. even though corporates are moving very well, in terms of issuance, there still seems to be the reach for yield propensity associated with the junk/high yield. if you look at it from a spread perspecti perspective, thank you barclays, it's

is you study the gdp report, rick santelli is at in chicago. >> a lot of u-turns going on.here's a bit of a disconnect between what's going on in the equity complex and what's going on with one measure of the economy at least in the form of gdp. it's showing up in the fixed-income markets and currency markets as well. we'll get an interday of 5s. negative gdp, fourth quarter, it moved down to 86 basis points. look at it now, it's at 90. look at a 10-year, around a 197. it's back up to 201. look at the 30-year, it moved down around 316. it's now at 319. the point of the story is, if there's a market momentum going on, mostly predicated on stocks, yesterday was a historic number of puts in the treasury complex. so this morning everybody's running around after the number going, wow, what a contrarian indicator it was. but don't look for the notion of selling treasuries or buying equities to go away just because of the gdp number. on currencies, it's even more convoluted. look at the interday of the dollar index. jim's pointed out, you think this is going to make the fed say, o

rick santelli has more from the pits there. hi, rick. >> hi, simon. stocks are up.e up. it makes sense. they're marching together down main street. will it last forever? at some point higher rates are going to be something they don't like. we're up half a dozen bases points today and breaking through that pattern the next several days. another reason rates might be up, look overseas. they had auctions in europe and they didn't do badly so we're melting away that safety trait. they've broken out to the 160 yield being violated. if we move towards munis, this is making a comeback. read a story on munis. there's tax issues we might revis revisit. real quickly, the spreads are starting to widen. maybe that's why businesses really at that point in these markets while the tapping is good. >> thank you, rick. survey monkey. it's a web-based survey company has raised $800 million in debt. one of the largest and one of its newest investors happens to be google. kayla tausch has been following this. >> thank you, dave, for being here. rare east costa peerns to announce this n

first rick santelli is going to talk about why fed policy is a drag on the economy on a week where we tried to pick somebody really calm today so i picked jeff carter because i'm pretty riled up. we're going to talk about the federal reserve and in for a penny in for a pound. there used to be checks and balances in our government proper. we can argue that one. but there hasn't ever been such a set up for the fed. maybe we need one. you want to come back to bottom of the hour. [ male announcer ] where do you turn for legal matters? at legalzoom, we've created a better place to handle your legal needs. maybe you have questions about incorporating a business you'd like to start. or questions about protecting your family with a will or living trust. and you'd like to find the right attorney to help guide you along, answer any questions and offer advice. with an "a" rating from the better business bureau legalzoom helps you get personalized and affordable legal protection. in most states, a legal plan attorney is available with every personalized document to answer any questions. get start

doug cote from ing investment manager, larry glaze e from mayor flower advisers and our very own rick santelli. rick, let's kick it off with you. what's been the reaction in the bond pits? >> well, first of all, people on this floor say be careful. a little dissension doesn't break the trio of power as bill gross pointed out, but the movement was fast and furious. we touched a 190 yield. at three and a half month high yields and immediately comped us back to early may we means we have an eight-month high should we close at 190. saw gold move down which makes sense because qe is a dollar buster but here traders don't like the program, don't think we need it, don't think it's doing a lot of good but they like making money longing s&ps, dow futures and their own personal opinion is be careful about drawing hard and fast conclusions on the minutes. >> if we didn't need this program though, wouldn't the market reaction be more positive? >> sure. what i think is the fed needs to get out of the way, the sooner the better. they are interfering with the price signal of markets. arguably in the backdrop

rick santelli is at the cme. not by much but up above the 2% mark. >> yes, 202 right now.% yesterday. 24-hour chart sue is alluding to, you can clearly see we rallied in price and dropped on the 8:30. that doesn't last long. open the chart up, we are making fresh high yields going back toy yop. but they are trading an almost skpakt time programs. their september copy and also a copy just like our tenure, remember. down close to 2% for the month of january. this 7% is compelling. one of the reasons we are ignoring gdp. this number put the dollar in negative territory for the year based on the dollar index. tyler, back to you. >> richard madigan from j.p. morgan's private bank, richard, we left off with critical rowcations. let's start with the first one. that's from bonds. low risk assets into equities. how do i exercise that pirouette correctly? >> markets keep trying to make everything about all in and all out. so i will preach pragmatism and balance. you're not going it take the return out of bonds you did last year. if you're lucky we will make half or less, which you m

rick santelli in chicago. a terrifying compute this morning for fairy riders working in lower manhattan. right near where i am here on wall street. two blocks from where we are. at least 50 people have been hurt when the c street wall street ferry had a hard docking, it had hard term stopping at the dock. the ferry was in route from new jersey. the ntsb is investigating and ty, there is a very personal situation because one of the gentlemen wlos been critically injured in that ferry accident is johnny. we know him here as johnny utah. he works for barclays here at the new york stock exchange. we understand he is in surgery and we wish him and his family all the very best. we will be thinking about him and praying for him. very somber mood down here. a number of people who work on this floor, ty, were hurt. >> i believe including one of the other freedom rider of that ferry is matt who joins us from time to time. >> yes. >> i don't know if matt is there today. but some 50 people injured. at least two in the new

rick santelli at the cme for us. hi, ricky. >> i guess all you need know is 1, 2 -- 2%.re camped out. if you look at at a chart going back it december 31st, it jumps out at you that here is where we paused. now up 23 basis on the points of the year which happens to be the month of january. if we look at the dollar index, one would think with rates moving up, maybe doing better but not the case. some of those rules don't work as well as they used to. if you look at year to date of the dollar index we are now down on the year. open it up to october. see where it blows dollar index prices, since october. maybe thank quantitative easing for that. what happen whes treasure agts start to move up? good credit, relatively speaking. riskier, and this has been bulletproof. pay attention. tyler, back to you. >> to the economy now. now unemployment claims coming off five-year lows. what can be expected on the heels of the data. yesterday's surprising gdp dip, our senior economic reporter, steve. jobs first. >> yeah. tyler, conflicting data ahead. it is important because it is a sign

rick santelli and bob, am i right in thinking there are little signes this could be better than expected this season? >> yes. you're right. on both counts. it is early but there is very interesting announcements in the last 24 hours. let me show you four of them moving all of their respective sectors. alcoa, very bullish on china. danaher, big multicountry business. earnings above expectations. seagate, that's a surprise. yes, signet, big holiday jewelry company, saying they were higher than expected. take a look at multiindustry sector here. big companies, operate across many different countries. look, bullish comments from alco-why and danaher also helping technology. up 1 to 2%. all of this seconder here. can you see the positive comments that seagate had on this drive moving all of those stocks up 5% here and 5% for western digital. finally, guys, keep an eye on big stocks. most of the big names are now negative. and mandy, they may be using thos to to buy better industries out there. >> rick san tellry, stunned and excited. give us the most interesting things right now. >> i think t

. >> rick santelli, the yield is creeping higher and higher, doesn't it on the ten-year? we have big events culminating in the mother of all data, payroll. so i guess, no big bets either way? >> yes. you know, and we have the fed meeting. we have european employment. all of this will be important. but follow the money. always a simple rule. you always end up with the right answer this morning. charles bittermann. and if we have the bar chart, the month of january, 55 billion record amount of inflows in etfs and mfs on the equity side. that's you will you a need to know except one other thing. the last time that we were close to this, the record we usurp is february of 2000. many of these big months you see on that bar graph were followed by reversals and equities. is it happening this time? it is different it time. the fed, ecb, so much liquidity out there. but all we can get is three db minute test of 2%. it is the explosion on equities and maybe a little erosion on fixed income but money is still flowing in. >> as they say, it is always different this time. rick, good t

rick santelli is tracking the action at the cme., i know they are watching the ten-year but they are also watching the 30-year yield. >> absolutely. we had two-year note today. 35 billion of them at auction. and the two-year didn't seem to make a difference one way or the other as we see on the chart as we crept up a bit. if you look at the ten just ref repsd referenced by sue. if you blinked, you missed it. if you open up the chart, she had her date spot on, april 25. we call it roughly nine-month high yield. and if we look at the frick and frack, we see the high yield is quite sought oafter. a lot of good buyers. mub is more muni oriented and still a raft of questions to be answered on the tax ability issues as we try it move forward and look at the loop holes in the tax code. sue, back to you. >> thanks, rick. >>> let's look a chart right now. year to date. dow and s&p up almost 6%. look at that. we are approaching all-time highs. we pose the question, is it time to get back in the game? mark is back with us. welcome back. >> sue

that means rick santelli is up for the action. >> thanks, tyler. first coupon sellers of the year, moved off the shelf a little while ago, yield 3.85, auction bid covered 3.57, this one excelled through that, 3.62. we see indirect 28.4, a little below the 10 auction average of 31. once again it seems to be direct bids really zooming. they have really had this issue the last several auctions in every maturity. 26.4. that usurps the last to 24.8. dealers took 45% of the option. i gave it a b. but it's going to be really interesting for tomorrow and thursday. the long end curves deepening to put really solid demand in 10s and 30s. sue, back to you. >> once again recapping a story we brought you at the top of the hour here on "power lunch." shares of boeing getting hit very hard today. that is because there's another problem with a 787 this time. it's at logan airport in boston. the stock is down better than 3%, although we should note that as off the lows of the trading session. there was a fuel leak. we don't know where it's coming from an engine or

the year, seeing the euro drop at the drop of nearly 1% sitting there at 13068 and this morning rick santelli after the better than expected jobs number, we saw yields at three-month highs. what are they doing now? >> every mark set moving quite aggressively. right now, 25, 30, rewe have 40-point loss since five seconds before 2:00 east person. that's all attributed obviously to the notion that qe might be built into a cake that's half cooked. aleast in regards to longevity. we sold off and pushed yields from 186 to 190. so if you are just looking at intraday, we haven't had 1 .90 print intraday since the second week of september. look at 9 dollar index, up a third percent. now up over a half a cent which is partially explained by the euro you pointed out but more broad-based. euro has been getting squashed for two days against most currencies. i think the dollar is benefitting from continuation but the implications. think about what it is saying. maybe we don't have to have so much purchase power and programs embedded into the marketplace. so there is a lost different wayes it look at this.

rick santelli is tracking at the cme.see the yield curve on the 30-year can be how are they doing today, ricky? >> this goes to the point. everyone is concerned if you are thinking rates aren't going up because they have. but they haven't really gotten traction at critical levels. so you look at one-week chart of everything. last week we closed at 109 and a 10 and yesterday closing at 190 and a 10. we back away when we get into the 90s. very similar for the 30-year bond. certainly, we spent a lot of time flirting with 310 to 312. here we are at 305. closing at 308 last week. we are down three bases points on the week. foreign exchange different story. trend is truly your friend when it comes to foreign exchange. you look at euro versus dollar. 9 1/2 month high. we continue to look at various things like how far we have shot now through 133 so a gig week for the euro and an especially big week, welcome a new handle dollar yen. looks like well close with a handle and closing in on 30-month highs versus the yen. we're not th

and rick santelli is tracking action at cme. this is 30-year today, ricky, how did it go? >> first of all, i love 30 dpsh year options. furtherest down the curve. this is an a minus best of the bunch. best of breed this week for 66 billion. let's go through the metrics. ultimate yield is 3.07. wi mark set 309 bid offer at 308, split the difference, 3.08 and three quarters. 3.07 were priced lower yield. higher price sought after. if you look at the bid, we are above the average at 2.77. indirects above average app 37.8 and directs at 16.7 doesn't show the intensity of some of the direct bidding and all maturities over the last month but still beats 15%. ten auction average, solid auction, maybe a bit of the down tick pushing yields up. whatever it is, every auction should have demand as good as this one. back to you, sue or ty -- tyler, it is all yours. >> rick, thank you very much. herbalife stepping up. last month a few big funds jumped in on the other side of the trade since ackman's presentation. since then, the stock is actually up by 5%. interesting course for the sto

. >>> let's head to chicago and check in with rick santelli for the bond report. >> good to see you, we look at the day in treasuries, it is about lower prices and higher yields after yesterday's appearing to be driven by equities wp and europe, opening up to a week, down three basis points on the week. and considering we are at 184 bb there's only two closes on this move above 190. those are the 3rd and 4th of january. an lot of selling sustained pressure in the mark pept if we look at hygetf for high yield, 4.5 fresh yield highs today. even though on spraead basis, they have widened out a bit. along with the euro/yen, dollar/yen, big performer, fresh 30-month highs as we hover and debate whether we close above 90 and very aggressive pro dollar but anti-yen trade with regard to pressure due to inflation issues by the bank of japan. tyler, it's all yours. >> rick, let's go to phil lebeau now for breaking news. >> tyler, we had some of our crew in washington catch up with secretary of transportation ray lahood. he was addressing the u.s. conference of mayors. after he addressed mayors

let's get to bob and rick santelli. bob pisani, what are we doing on friday? we are just kind of doing nothing right now. meandering around. but we have been up for three straight weeks. >> i'm happy guy. we are in the heart of the earning season. big industrial companies are all reporting, something important is happening. individual companies are moving on their own earnings reports and not moving the all around markets around. look at industrial companies that reported today. here is the nasdaq. put up industrial companies here. important thing, ge for example came out. good earnings report. it is on the up side, parker hanifan on the up side. johnson controls with a bad outlook on the company. everything is moving individually and not afeking the overall stock market. people have been asking whether you should be moving into the industrial names and out of the bank names p and certainly happening in the last two weeks. so we've seen big banks looking tired these days. that's not an accurate number here. j.p. morgan with the down side as can you see. a lot

let's see how rick santelli and the bonds are. >> happy new year, tyler.ond market is the same as equity. it jumped up on yields. fell in price. look at the 24-hour chart. boom. we open up eight basis points after closing at 176 and we have been in basic lay one basis point range ever since. when you team it up with a one-day chart against the dow, you can see what's going on. the real question is, i understand bob is correct, we haven't really moved but we really haven't gained momentum in the equity trade so you want it watch this. the dollar index is up on the day. why? because the euro has fallen quite dramatically and the dollar add great day like every other currency. becky, back to you and happy new year. >> happy new year. >> if you are just coming out under your rock, a triple digit on the dow. yields on the ten-year also rising. still a lot of uncertainty ahead. how should you be positioning yourself or 2013? let's bring in our panel of expert traders. kenny is standing by at the nyse. richburg in chicago. and anthony at the nymes. kenny, why don

rick santelli, we will get to you in a second at the cme. bob, apart from the jobs, what are people focussing on there today. >> its bean a great week. all of the gains came on one day. you want it see the fiscal cliff or r or the resolution of fiscal cliff. there is your resolution on wednesday. problem is, aside from that, this is about new money coming into the market. volumes extremely heavy on that wednesday. an market is up five years in a row on the trading day. that is also about new money. volumes dropped off dramatically in the last two days. next week will be much more about reality. i do want to note today, we had some notable weakness in some of the big tech names. apple is nothing for the last accept r several days. finally, i got a lot of questions about the vix dropping to near multi-year lows. i want it point out what this vix is. measuring implied volatility on one month out. everyone sequestered in february and about the debt ceiling, all of that is the end of february and beginning of march. vix is worried about one month

joining me right now is jeff sought from raymond james and jeff ickes and our own rick santelli. and another from the floor of the exchange coming up in a moment. gentlemen, nice to have you on the program. thanks so much for joining us. >> thank you. >> let's talk, jeff, about the earnings period so far. how would you character it? >> the earnings that were being revised down all through the fourth quarter, that reversed about three weeks ago, looking for fourth quarter earnings to be up about 3.2% by the time it's all said and done. >> do you think that's priced into the market? are you expecting any surprises for the fourth quarter? >> i think the earnings are going to come in stronger than most people think. i think the big unspoken event that's happened over the past two days is that the transportation average is broken out to new all-time forever highs, and i don't hear anybody talking about that and that's pretty burlish for the executive sensitive trannies. >> let me get your take of where we are in terms of the economy. a discussion about the fed earlier in terms of the

i did it with rick santelli this morning. and cbo is going to revise these.ally per month, we're looking at $250 billion worth of revenues per month. if you take out debt expense, medicaid, medicare, and social security, you have already absorbed, let's see, 65% of those revenues. and i haven't even put in, veterans benefits, smaller entitlements, and politically sensitive programs. >> right. >> to me, that's an unnecessary explosion and the numbers just don't work. >> well, but larry, again, you have to compare this to the alternative. the president's saying just give me an unlimited debt ceiling increase and we're not even going to have a conversation about spending. remember, this president hasn't been willing to address any kind of meaningful spending reforms except once in the context of the last time we addressed the debt ceiling. i just think it's so important we have to do this. i'm certainly hoping that it doesn't come to actually having some partial government shutdown and a scenario you described where some bills get paid and some don't. that's not