rick santelli. >> we exchanged locations.re on i had the big spaghetti harness around my neck. you don't see it around my neck anymore. here is where it is. all the wires we connected to the natural gas injectors, we made them nice and pretty, twist ties, plug and play. we have a couple of other components left on the spaghetti. here are the modules that go into the computer for the engine and those are the last plug ins. we are very close to the electrical side being complete. so to summarize we put the tank, ran the lines of natural gas. we ran the regulator and did the electrical part. now is a matter of cleaning up and putting final apparatuses in and dealing with the interface to the computer. it doesn't change it. it just interfaces with it. this is one of the coolest santelli exchanges i'm going to do. >> are there limits to the type of car you can do? >> the interesting thing with pickups is you can go with big tanks versus smaller tanks and have easy places to put it. the smaller the car then you have issues. we did

rick santelli with the santelli exchange, has already brought us the chicago pmi and a lot more stillek. rick? >> absolutely. i'll tell you, i know austerity, it's such a buzz word, but we're going to do something. we're going to show, to really put austerity into perspective, you need to turn austerity into prosperity. we need to make it into prosperity. and how are you going to do that? growth. and growth will create jobs, jobs, jobs. but you have to remember, france is about ready to take a step to the left on sunday the 6th as the socialists look to be displacing mr. sarkozy. it's going to be about spending. this is a huge issue. austerity, well, it's going to move into a keynesian mode based on the outlook of that party. but remember, spending comes in two forms, the government side and the private side. and this is the key, because what we see in this country, just to give an example with reference to europe, is corporations are sitting on boatloads with a "t," trillions of dollars. we need to put it to work, and it will go to work. we just need to create a fertile environment f

thank you very much, rick santelli. thanks, larry. >>> let's go from fracking to converting for liquid fuel in cars and trucks to massive job creation to international competitiveness to energy independence. this natural gas story is a tremendous unbelievable economic revolution for america. let's talk to jeff ventura. president and ceo of range resources, one of the pioneers of this revolution, including the development of the marcellus shale region in pennsylvania. mr. ventura, welcome to the show. let's get a quick comment if you saw the rick santelli piece. is this converting into combination, at least, of nat gas and gas, along with liquid in the truck replacing diesel u.p.s., you name it, how do you assess the potential for all of this? >> well, i think there's tremendous potential. with the new technology and the revolution to natural gas, we've gone from a reserve life of about ten years in the late '70s to over 100 years today. like you just mentioned on your show, the cost of running vehicles off natural gas i

the cme group today, rick santelli with "the santelli exchange," amid a lot of activity in chicago todayis a bit of a work stoppage going on in one of the largest, most successful options pits in the world, the euro/dollar futures options, and it's in regards to block trading. and a quick overview on block trading is this. if you're a customer and you want a large order filled at one price, you want to potentially deal with a block trade. but there are issues with block trades, and the issues are going to be expressed by a floor member, dave stein. let's look at the issues of block trading, dave. and we've talked about it. one, you believe there's a competition issue. you don't believe block trades are competitive. explain. >> well, the way a block trade's executed is that some person gets a phone call somewhere and is asked to market, but no one else is encouraged to make a market at the sail time. the way our customers are guaranteed the best price is many people make a market at the same time and the customer is offered the best possible price. when only one person is offered the oppo

let's head over to rick santelli. rick?ess inventories increasing .06 of 1%. that's matching the expectations of .08%. the big response of diana olick sector. the housing sector index taking a steam out of equities already coming off the highs after better than expected retail sales, weaker empire and trying to handicapped europe. interest rates now flirting with the lowest levels of the day after the jump they saw on retail sales. back to you, melissa. >> thank you very much, rick santelli. let's go to the road map "squawk on the street." texas oil and gas ent traary clayton williams talking all things natural and natural gas. plus, fears of a need for a bailout in spain worrying investors here. we'll go live to the investors in spain and what it all means for your money. and good news at the gap. the troubled retail soaring more than 40% this year. but will the rally hold? the bulls and bears battle it out. > >>> mattel came through with weaker than expected shares. it's one cent short of what wall street was after. reven

. >> rick santelli, thank you.et's look at futures once more as we head to the opening bell this first day of the second quarter. much more "squawk on the street" straight ahead. greensboro sometimes investing opportunities are hard to spot. you have to dig a little. fidelity's etf market tracker shows you the big picture on how different asset classes are performing, and it lets you go in for a closer look at areas within a class or sector that may be bucking a larger trend. i'm stephen hett of fidelity investments. the etf market tracker is one more innovative reason serious investors are choosing fidelity. get 200 free trades today and explore your next investing idea. into five minutes to the opening bell on a monday. time for cramer's mad dash. starting with amazon -- i know you're looking at people in the balcony. >> these are fabulous people doing great things for autism speaks which i'm happy to be a supportive of. carl, once again, is the digital marketplace so ferocious that even amazon, which is spending

rick santelli joins me. the market stands at this moment. >> i think this is a huge day for the fixed income traders and even all traders. the acknowledgment that as much as rates can pop up quickly because conventional wisdom is that these historic low rates can't last forever, global growth argues with that. the investors' sentiment disagrees with that, and we continue to see whether it's negative t-bill rates of many countries around the globe or, you know, historic low yields in boons, or our first close potentially under 2% in ten years. you have natural gas competing, whether they could stay above or below, too. i think this dynamic is going to continue, and i think it's not going to make a lot of volatility or maybe even a lot of money on treasuries, but the real question is i just don't think you're going to get rich selling treasuries, and i think that's really the debate to have. >> we have to head into earning season, gary. >> let me put my manager hat on and go back to

the third edition of the santelli exchange.morning, rick. >> good morning, carl. the big term is globalization. in my opinion, globalization will live to fight another day, but since we're in the positives of the globalization in the o's, all of a sudden, kmocommentator think they can disengage. if we look at the biggest assets in spain, it's banco santa banco santan dare, and probably i didn't spell it right, but if you look, their earnings came out. if you look quarter over quarter or year over year, they were down a net profit by 24%. if you look at the first quarter this year, they had 1.6 billion, okay? if you look at -- and that's ur ow owes. what was the reason for that 40% drop? do you think they know their own stuff? i would say yes. the quarter over quarter, year over year operations in the u.k., they were off 40%, which leads us to the u.k. what have we learned about the u.k.? they've had two quarters of negative growth. they're officially in recession. q4 of last year was minus .3. what we learned this year, it was

rick santelli for us. let's hit the twicker and trade some of your tweets now.graph asking could you talk about broadcom, i've been buying on dips and it keeps dipping. >> i think it's okay. i still think the smartphone usage is going to increase. they're well-positioned. i like it. >> okay. our next tweet, samsung amazing q-1 guidance last week, a sign consumer spending is recovering. j.j. >> yeah. i believe that it is. i mean, the guidance was amazing. and i think one of the ways you may actually see this kind of fall over beside samsung is in some of the retail stocks that have come out over the next few weeks. i think there's a strong case to be made consumer spending is picking up overall. >> murphy. >> yes, i think samsung is a great company to own. they have tons of growth overseas and it's a great hedge against apple because conventional wisdom is if anybody does knock apple off their perch, it's going to be samsung. >> steven harris tweeting supervalue releases earnings tuesday. thoughts on food retail, joe? >> don't like the space. don't like kroger. d

cme group in chicago, rick santelli. let's talk about the fed minutes. steve and kelly, do you think that this is just a continuation of what we saw yesterday and more digesting of the fact that qe 3 is not happening any time soon? >> i think what is interesting is when you see the prospect away from quantitative easing, we already knew we had a fiscal cliff. now it means that we have a monetary cliff coming in june when the current bond buying program ends. that's why you see downward pressure on stocks. not really indicating an eagerness to do more liquidity. it's just that the punch bowl is being taken away when there's worries about global growth flaring up. >> steve, the adp numbers today and i saw the chart that you put up, very much in line with the bls numbers, bureau of labor statistics, versus the adp numbers. >> adp for the moment. there it is right there living up to its promise, doing a great job of predicting the magnitude and the change of the private sector. we're looking for 200,000 in change and that could be enough depending on how man

goolsbee make it interesting. >> what did you say santelli predicted? 195?195. >> zandi at 200, swonk at 187. >> i thought to myself this is the first time i'm coming in under santelli. i'm going to start banging my face on the desk. i don't think it's going to be more than 180 or something like that. to me ultimately the job growth number is determined by how the gdp grows and i think we've had three or four very strong months but those all reflected the up tick in the growth race and i'm afraid the growth rate is slowing down a bit. almost everybody is saying that. eventually that's going to show up in the jobs numbers. they're not going to get terrible but they're just not going to be what they've been for three or four months. i'm previodicting it starts thi month. >> do you want to take a crack, though? >> i think they've got it wrong. i've been working on whether or not the number could be potentially much higher and i'm thinking like a 209 number for the following reason. >> wow. >> i think everybody underestimates the power of not firing. the way thi

rick santelli, thank you very much. you do great work all day. >> thanks, sully. >> well, from filling up to fueling the world, global natural gas demand is booming. eamon javers joining us now with the international side of the nat gas story. eamon. >> hey, brian. here in washington really the fight over natural gas as we see it being deployed in situations like we just saw on your show is a political fight. it's a political fight about taking credit for what's going on in this natural gas boom we've been seeing all across the country. the president has been traveling the country making the point that natural gas is a good thing. take a listen to what he said back in las vegas earlier this year. >> we've got to take advantage of this incredible natural resource. and think about what could happen if we do. think about an america where more cars and trucks are running on domestic natural gas than on foreign oil. think about an america where our companies are leading the world in developing natural gas technology -- >> bo

rick santelli has all the news at the cme. hey, rick. >> hi, all right. $21 billion re-opened 10-year notes. and the ultimate yield 2.043. where is the one issue in trading before the dutch auction buttoned up minutes ago? it was 2.04 offered at 2.04. even though it looked to me as though the high yield low price was 2.04. so you can say it priced where it was supposed to, but technically highest yield, lowest price of the wi session. bid-to-cover 10 auction average 3.03. 43% 10 auction average, what were directs? 11% on directs. below 14%. we're going to give this one a b minus as well. same as the three-year note auction yesterday. tyler, back to you. >> rick santelli, thank you very much. let's head now to bob pisani on the floor of the new york stock exchange. bob. >> hello, tyler. look at this, we're holding our gains near the highs of the day. why is everybody so confident again all of a sudden after being so rocky yesterday? alcoa was marginally a help. but i only think marginally. comments by the ecb official they migh

you kind of heard what rick santelli had to say. you're one of the largest financial services firms in chicago. you're big in the corporate bond market. used to trade muni bonds, what do you see happening with interest rates? where do you see the bond market headed? >> one, we've seen so far this year a great appetite and a great acceptance of bond yields by the investors. the question that you asked rick in terms of bond vigilantes sort of pushing these interest rates in a way that's different from the fed -- from the way the fed wants them to go, i agree with them they could. not necessarily likely to happen right now. >> why not? >> the view on the economy right now from the investment community is probably a gradual getting better. we see some gradual improvement in the jobs market. we see some concern in the housing market. we probably see 2% to 3% growth in gdp, which is the range. those are manageable numbers. those are numbers that signify manageable improvement but not a spike up. so i think they're very comfortable owning

. >> that was rick santelli on cnbc giving the tea party its name if not its launch. weeks after mr. santelli ranted indignantly about the obama administration's meager tentative proposal to help a relatively small number of homeowners caught in the jaws of the financial crisis, the losers as santelli referred to them, a few weeks after he delivered that ramp the new thing called the tea party owned tax day. remember that tax day when the tea party exploded with the tea bags and the lawn chairs. remember glenn beck when he was still on tv. remember when he got on stage and told the tea partiers that their moment had come. the tea partyers rallied vociferously against health reform. specifically, president obama's proposed law providing coverage for millions of new people while requiring everyone to buy health insurance. here is the tea party response to those ideas in 2010. they're challenging lawmakers outside the u.s. capitol just before the final vote on the bill. no surprise. this kind of scene does not make me personally want to run out and buy a tri corner hat.

shift to rick santelli. rick? >> yesterday, jim, we were all paying very close attention to the five-year. the ten-year's the quasi benchmark. most of the financing, a big audience with five-year yields. around 1% before the minutes. ended up settling yesterday at 111. currently splitting that difference at 105. if you look at a chart going back to the last time, i should say the first time we had a pretty robust selloff in treasuries, sparked by the fed moving on the 13th. looking at the dollar index and all things being equal, a rise in rates is friendly and has been on both occasions. 13th and yesterday. see we're a little bit below 80 in the dollar index. where at the close of last year? a bit above 80. this is bringing the dollar index towards unchanged. the real key is will the maturities trade above their high water mark over the last couple of weeks in that could be a dollar friendly. back to you. >> all right. thank you very much. let's get to david. he'll bring us up to speed and more color on the burger

. >>> let's check in with rick santelli. >>> good morning, carl.k anybody who's watched me over the years realizes that i have been consistent on a topic, a big topic, and that's bailouts. i'm not a fan of bailouts. i'm a fan of institutions being allowed to fail and if we have allowed to institutions to get too big to fail, we need to address that. but we haven't. in specific terms i'm talking about mortgage and principal forgiveness. this issue is popping up again. the federal housing finance agency, this group is the regulator for the ggsc. the new principal forgiveness plan being put forth supposedly can save $1.7 billion. i'm not sure i believe that. i think it could have some negatives associated with it, for people current on their mortgage may not be current to get involved in this program. ed demarco said recently at a brookings institute meeting, hearing, talk that he was speaking at about this topic, he said over the past six years, many efforts have been launched be i the federal government to spend the losses rising from the housing pr

rick santelli is standing by.e data and it all hits right now. >> here we go. let's look at the trade balance. it actually improved. less red ink on the deficit. last month's 52.5 billion, worst trade deficit since the fourth quarter of '08, a prepreviousre billion. if you're looking year over year, the headlines just like the headline, a month over month was easier at 2.8 versus 3.3 and if you look at year over year with respect to core, 2.9, very close to the 3%. jobless claims jump from 357, to 380,000. it jumped 13,000 on the week, but in my mind it jumped 23,000 because obviously you add a 10,000 revision to the up side. if you look at continuing claims, they reversed a bit from just shy of 3.35 million to 3.25 million and the after math of all of that is pretty much a 202 yield on tens, which were a -- equity market gains were up 44. that 44 billion is the smallest since october of '11. even though it's not huge in terms of time, it reversed that trend of close to four years on the trade deficit. i think we'

santelli with the bond report. let's move on to.did win the bid for what was for sale namely the infant nutrition business of pfizer. taking a look at pfizer's shares it is interesting in part i think this is a more important story for pfizer investors perhaps who were already well aware. the stock moved up on the initial reports of the deal. >> yes. >> do you like what the new ceo is doing? >> i think the new ceo is trying to become a pharmaceutical company. at one point they had perfumes. the reason why i like this acquisition is pfizer will be able to boost the dividend as one of the higher yielding stocks. for nestles kimberly-clark talked about the need to have diapers in undeveloped areas. they are becoming like united states. nestle's is attacks the fastest growing marketsture are these infant markets. >> 85% are the sales of the units. they are trying to explain it to the share holders. we did get a handful of smaller deals this morning. you take a look at the numbers and the margins for the business that we're talking about

we're going to get more on that from rick santelli. back to you. >> treasury prices rallied following higher than expected weekly claims data. cnbc rick santelli is at the cme in chicago with the details. what happened to the bond market today. >> gary, let's start out with a seven-year note. if you look at a seven-year note, we're down several basis points. we optioned 29 billion of them. if you open up to a one-year chart, today's yield 1.347 was the all time yield auction level. below closing yield on this maturity was around 123. if you look at a two-day chart of ten years, this is fascinating. if we hook in yesterday's session activity with the fed, we traded close to 2.04. today we traded down to 192. a 12-basis point range over the two days, one including the fed and we're still right now three basis points lower than the 198 settle even though stocks are up 118. money going into both, maybe european money going into the credit markets. let's look at the two-day chart of the dollar index. that reveals a narrow range. minuscule a

gary kominski and bob pisani and rick santelli. first let me get your take on the reaction from the markets, rick. >> well, you know, there were two reactions on the statement and i think the reaction of higher rates on the action is apparent. there's no mention of any more extension of the twister qe and another bit of a selloff when the original forecasts were released because of his horizon for the unemployment rate falling below 8%. rates are where they were four or five hours ago. >> he said that labor market conditions and unemployment rate has declined but remains elevated and i think that's probably the crux of the issue. we're seeing a recovery but it's not necessarily fast and not -- or certainly not strong enough as people would like to see right now. >> yeah. and the problem that i have with the stock market is that it was evidence of the silly addiction that the quantitative easing has. we have the forecast out. they raised the growth estimate and unemployment estimates and in general this is signs of somewhat improvin

bill, back to you. >> rick santelli, thank you very much. >>> a decline of about 145 points. negative but off of the worst levels. >> for sure. it is clear that fear is creeping back into the markets. this year's rally is starting to run out of steam. >> how about the new concern of the health of the global economy? that's pushing global prices lower. >> speaking of commodities, the gold index hit a two-year low today. is this a buying opportunity or is it still too early to get back into gold? we take a look at that. >> major commodities and how they are trading. sugar by a frakz. back in a moment. you're watching the "closing bell," first in business worldwide. great shot. how did the nba become the hottest league on the planet? by building on the cisco intelligent network they're able to serve up live video, and instant replays, creating fans from berlin to beijing. what can we help you build? nice shot kid. the nba around the world built by the only company that could. cisco. ♪ there'll be the usual presentations on research. and development. some new members of the team

rick santelli in chicago. eli lilly for an exclusive interview and get an update on the company and what it has coming down the pipeline. back in just two minutes. >>> take a look at the dow. close to session highs up 145. the market anticipating a better gdp print from china tonight if you believe rumors that float in some circles. it's interesting when we get ahold of that data come opening bell time tomorrow. a few days ago eli lilly got the green light from u.s. regulators to a brain imaging test. it's designed to help doctors detect brain plaque tied to alzheimer's disease. more expirations lie ahead including a drug used to treat depression. what's in the company's pipeline to boost profits, we have john here with us. congratulations on the new title. >> thanks, carl. >> streets have been gnashing their teeth for a while. where do you think they are in getting your message about the degree to which alzheimer's treatments offset some of these patent expirations? >> carl, we've seen these patent expiration

rick santelli is here with a tuesday addition of the santelli stance. >> carl, we all know there's adget. we all know that many times i've tried to point out that in this country and in many countries we have real spending problems. but spending issues break up and not only borrowing, but lending. there was a great op-ed by george malone yesterday that pointed these out. in '08, we took over most of these in the form of fannie and freddie. we got $5 trillion encompassing many loans. and we know that directly they've so far taken down about 135 billion since they've been in conservatorship of taxpayer funding and ultimately over the next several years, many believe will be closer to $300 billion. this doesn't even include what happened in 2010 when the federal government decided they wanted to take over sallie mae. in essence, the student loan ram. $80 billion was guaranteed a decade ago. that is, indeed, a large open investigation. and we all know that we want immigrants, students, we want a lot of people for a politician to be in our base. but the problem when the government takes t

analyst at the nonpartisan tax foundation as well as our ownç rick santelli.tell you how this is going to go. i'll say the highest corporate tax rate in the world, 75 million people write-in, yeah, but no company pays anything thanks to deductions. everybody pays zero. that's the way it works. what is the average effective post deduction corporate tax rate in america right now? >> well, it is 26% according to the latest numbers from the irs. and that does -- that is after deductions, credits, loopholes, whatever, et cetera, whatever you want to call it. that is in line with other studies by the various government agencies that come up with similar numbers. >> 26%. where would that put us? somewhere still i would imagine in the top five or ten even post-deduction. >> that is correct. we pulled together the most recent legitimate studies, there's about 13 that have been produced in the last five years or so that did this cross country comparison of effective tax rates paid by corporations. and as with the statutory rate, the u.s. ranks very high in terms of the

rick santelli live there. >> absolutely. >> well-done. >> here we go. >> i want a nat gas car.ave a prius. i want the next thing. jobs, europe inflation, debt crisis, iran's nuclear threat. what could kill this first quarter rally? >> the biggest risks to your portfolio you need to know about. that's next on cnbc. [ nadine ] buzzzz, bzzzz, bzzzz, bzzzz, you know, typical alarm clock. i am so glad to get rid of it. just to be able to wake up in the morning on your own. that's a big accomplishment to me. i don't know how much money i need. but i know that whatever i have that's what i'm going to live within. ♪ ♪ is to take you from where you are... to where you need to be. and we're not just talking about points on a map. with a more intuitive delta website and mobile app... and the most wifi equipped planes. we let you be everywhere at once. innovations like these are extending our reach so you can extend yours. and now, even at 30,000 feet you can still touch the ground. >>> let's give you a quick check of the u.s. markets. industrials down 7 points. nasdaq off about 30 points

rick santelli, my point is about spain. three biggest banks in spain have assets at 200% of spain's gdp. our three biggest banks are only -- i use that loosely -- at 40%. the spanish bond market is sinking. the spanish stock market is sinking. spain, no offense to greece, portugal or belgium, is a real economy. how much is spain being talked about, if at all, on the floor of the cme? >> oh, of course. i enjoyed your guggenheim guest. that was a great interview. i look at the stock market. i look at the vix. i look at 10-year note rates. 10-year note rates and the vix haven't been the same since march -- no coincidence. markets are all moving to the same thing. i don't look at what's going on as a big deal necessarily in stocks. what was the catalyst is a big deal. listen. we all know what we did with the bailouts in greece wasn't a solution. it was a stability issue. the issuance going on in spain and indeed many parts of europe, maybe even japan and other developed countries, is going to linger. the horsepower of the globa

rick santelli is chicago. quick check on nokia. a 16-year inter day low at $4.33. if you missed news earlier this morning, cutting outlook saying they are seeing increased competition in emerging markets and the software bug in the fancy new phone causes the phone to lose the data connection and they say the bug will be fixed next week. >>> turn to earthquakes today that struck off the indonesia island earlier today. our next guest is in jakarta and worked on reconstruction after the 2004 tsunami. edward, good to have you with us. thanks for coming to the phone. >> thank you so much for taking the call. >> can you just tell me a bit about what you experienced or what you've heard today in the way of impact from this quake? >> sure. well, so far we've had dispatch of first responders to the site by the president of indonesia. all indications are that the situation is at this point in time under control. and people have evacuated to higher ground in an orderly fashion. these are all lessons learned from the 2004 tsunami that essentia

on february 192,009, rick santelli, commentator on cnbc went into west indies gained our rants announcing obama administration policies to help underwater mortgage holders that they called losers. he invoked the founding fathers to talk about that they would feel at all that americans are too sealed what was happening to our country. at the end conservatives who have been quite injected falling to 2008 election recognized the rhetorical gold in the santelli ran, the symbolism that barack to pause and begin to organize using the internet cannot kind of face-to-face methods in communities and regions across the country. there are also cheered on. within weeks or staging demonstrations in various regions featuring older people dressing up in costumes carrying signs and announcing obama as a socialist or communist. within months they were mounting huge demonstration in washington d.c. and set to work organizing what eventually became 1000 regularly meeting global groups and state all across the united states. by 2010 the mainstream media started to take more notice because they were affecting

rick santelli.arnings and we'll talk about ex-apple everything. >> technology leading the parade and kudos to gary for that great blankfein interview. the important thing is every single day, carl, i come on with new numbers and every single day the earnings numbers keep going up. what we're tracking, remember two weeks ago, 1% earnings growth, everybody is worried about it. today, 6.3. yes, apple helped, of course, but had caterpillar and everybody else helping, as well. revenues are increaseniing as w. now revenue growth 6.3. s&p 500 and again not the double digit growth we were seeing a year ago but still perfectly respectable. one sector and only one sector that's a new leadership group. i bet you don't know what it is, it's real estate investment trusts. my old beat 20 years ago. look at this. four-year high in real he statement investment trusts, remember these are real estate organizations that own and operate commercial real estate on behalf of their investors. low interest rates are helping

santelli exchange today. look to our neighbors to the north. it's remarkable.2,300 jobs. they were expecting 10,000. it's the biggest number going back to '08, but i did some research. i went back through 30 years of canadian jobs data. 82,300 is the fourth best number in 30 years, so that could have a positive effect on the number tomorrow. either canada's catching up, or they are leading. i'm not sure which, but here's the icing on the cake. manufacturing is coming back to north america. our second issue is interest rates. if you were to look at a chart of ten-year u.s. minus ten-year boons, it's in the 40s. it's in the widest in over a year, and it really does underscore, yeah, maybe there's a more optimistic economic look in the u.s., but there certainly is a more pessimistic view in europe. now, we're going to get to the part that i like the best. on monday we're going to be doing the nat gas challenge. i'm going to be in oklahoma city, and we're going to drive in one of the most monster favorite trucks in america, the mean ford f-150. we're not talking sm

. >> talking to cnbc, rick santelli is a big part of your explanation as to why this happened? >> hi, rick. >> but i think there also was an underestimation of the ability of the market to actually process the foreclosures in a timely fashion and deal with the problem. i think there was just an underestimation of how difficult it was going to be and how big the stock would get. and, you know, we were in unchartered territory. you can just look at the policy reactions at the time, and it very much was making it up as you go along, because you truly didn't know all the moving parts. and i think there was a -- >> we've had a lot of time to make up a story on housing. right? >> right. but after t.a.r.p. 1, i think there was increased recognition that there was problems in the housing market. that's where it became, you know, in many cases it was politically too challenging to deal with it. so a great example of that is if we look at mortgage modification, right, about 25% of all the mortgages that are actually directly held by banks have been modified. about 2% of those that are in

let's get to rick santelli. looking at rates and treasuries, hey, rick. >> hi, maria. we had a two-year note auction and some gave it a lower grade because the dealer community which took down a little more than their average of 60% are already loaded with two years due to operation twist which might be a big deal for tomorrow's fed statement but the demand was very strong. as you look at a two-day chart, you can see that rates on the right side have crept up. it's been a very narrow range. here we are at 196, highest yield of the day. maybe more importantly, as you open the chart up, you can see that yesterday we were at the lowest rates since the third week in february and high spike yield on that chart is basically the last fed meeting. let's look at a dollar index as we go through today and tomorrow and you can see that it's down on the year to date chart but the last big speak right there in mid-march, that was the last fed statement and a lot has to do with the notion that if twist runs out in june and next fed meeting is the 19th and 20th, tomorrow's statement i

rick santelli would normally -- he is going to join us.p in chicago. rick, i hope you've been -- that's the problem is you have to be on the air at the same time that we have these form today. i guess now we're having a problem actually with the shot to have rick. so it's going to be my opportunity to bring you the numbers and then i'll be tweeting the numbers. the numbers, please. you're going to give it to me in my ear or is rick there? >> hello! >> up 0.8 -- >> there's rick. >> rick, you got them? >> sure, up 0.8, yeah. if you take out autos, you're up with 0.8, and empire is a major disappointment. we were looking 18.5 to 17.5 so 6.5 is on the weak side. so all in all, and we still have tick data coming up at the top at the 9, i like how tick data is progressing. this number is progressing, something the market is going to pay attention to. we see the interest rates are well below 2% on a ten year, that's partially europe and partially what's going on with some the data from last week. but this data is very strong. we want to see how t

today. >>> rick santelli joins us today with the tuesday edition of the santelli exchange. next week we're going to have a fed meeting and as a guy who likes to try to correlate and put the spin into the -- how do markets trade relative to some of the controls or management or activity that the feds put into the marketplace. recall, look at this chart. we had a five-month high yield close to 240 in a ten-year after being in a range in december. what was the catalyst? the catalyst was the last fed meeting on march 14. why was that important? because when the fed hinted basically what it didn't put in the statement, that maybe it's not going to be purchasing as many securities, the markets sold off, interest rates rose. what slowed it down? the next employment report. you know, we have lots of jobs reports and lots of good data. when the market was in the range are treasurietreasuries. but all of a sudden when the fed mentioned that they're going to let the markets potentially, maybe, be more normal, we is a -- we saw a weak report. so the fed meeting coming up is going to be

rick santelli is here with the santelli exchange. >> yes.corker coming up at the bottom of the hour. eamon javers talked about the student loans and growing to $3 trillion. consider this. there's not a lot of solutions put forth. you know, tough love. my generation used to have that phrase tough love. and tough love is when you look at things and you try to make them better and the act of making them better puts people in a situation that is a bit painful. but that's not where we're at. we don't see solutions. we see giveaways. we see debt forgiveness. the operative word is give. whether it's mortgage principal reduction or student loans and we can go on and on, but these are the biggies. we look at mortgage principal. ed demarco, public enemy number one, and i'll address that with senator corker. he is the head regulator that's supposed to be guarding for taxpayers the activity in the gses, the freddies, the fannies but he's pseeing more pressure put on him. the student loans is also -- listen, if you want to fix what is going on with these

rick santelli is at the cme in chicago. rickster? >> it's unbelievable. if you look at the train day of 10s, from 6:00 eastern a.m. on, we've been in a two day base point range. 199 to 201 in a ten-year. if you look at a two-day chart, we're around 196. still a narrow range. one of the analogies on the ground is, it's going fast but it's really limited. a lot of high-frequency perception. i think they are actually focusing more on domestic where i think the ex quit tea market is focusing on spain. and that better news is in air quotations. >> we're heading towards the close here. we have a lot to get to in the next hour and 15 minutes. right now the dow is holding near the high. up 195 points right now. >> how is td ameritrade dealing with the low volume trading environment? the ceo of tb ameritrade and the bottom line. >>> apple is off the worst time high after the first losing treek in thrstreak in three yea. >> we want to know, what would you rather own? a new $600 ipad or one share of apple? tweet your response to @cnbcclosingbell. >>> and then a trif

. >>> rick santelli is at the cme. rick, i'm assuming that as we saw stocks start to sell off and nasdaq is a selloff fully, do people go into bonds? >> yeah, but i think they were going in that direction any way. you can see on these three-week losing charts. the spread is 26 basis points. the u.s. is doing better. you can see that in the credit markets. still under 2% means that there's a nervousness as well. it's a positive dow week. we have two housing numbers, two confidence numbers. our first look at quarter gdp one week from today. we have supply. we have a fed meeting and we have the postmortem on the elections in france on monday and sall of these are having a buying effect on treasuries as investors are clinging to anxiety at a high-profile fashion. back to you. >> thank you, rick. dow jones industrial average up 118 points at its height but now well off of that. nasdaq has gone negative. some of the other tech stocks. >> slip siding away here in the last hour. american airlines may be flying towards a merger

rick santelli is in chicago with details. rick? >> hi, bill. you know, the ten-year auction really wasn't bad. it was about as good as a three-year. i would say even about average. the table was set more on europe. it could have been more aggressive but it wasn't bad. look at a two-day chart. here's the issue. you settle at 198. you're up four basis points. it hasn't been a robust day for trade really. you can see we're definitely closer to the low yields than the high yields. here's some of the driving points. look at the shots. the two-year in europe. yesterday it closed at nine basis points. today it was trading 14 and settled at 13. a good reason to use percentage in the fixed-income market. it's not accurate to say short rates are up over 50% on the opening today but they were. now, if you look at a two-day chart of the ten-day boone, we're up four basis points and their ten-day was up 14 points. there was so much anxiety it pushed the rates dramatically lower. back to you. >> it is odd to do percentages of percentages, isn't it? >> yes, i

rick santelli is at the cme group. rick? >> i tell you we're at a 188 yield at 2:00 a.m. eastern. definitely we're higher at 193. at 193, we're lower on the day as you look on the intraday. as we go out to the week, we're several basis points out on the week and we're going to make a fresh, low closing yield going back to the first part of february. even though we're not at the lows, we're pushing back the comps again as data and nervousness over europe continue to show up big in the credit markets. look at the dollar index. a dollar is weaker and inflation is up. the dollar will look better. this is going to be the lowest close since early -- excuse me. since the last week in february and underscores even currencies like the yen and the pound. economies worst off than we are, our currencies are doing better versus the dollar. rick, back to you. >> five minutes to go before we he is enclose the bell on this wall street. take a look at dow industrials higher by 44 points. nasdaq s&p higher as well. i was looking to see. i don't know where you're supposed to look. >> nasdaq was righ

. >> rick santelli on the floor of the cme group. tune in for tomorrow's consumer price index.g headline inflation to increase 0.3 of 1%. strip out all the all-important food and energy called core, we're expecting 0.2 of 1%. at 9:55 eastern, university of michigan sentiment survey april preliminary read. we're expecting 76.2. tune in. >>> ammary thompson. this is what i'll be watching for on friday. two big banks report first-quarter results. jpmorgan's earnings seen falling from last year though expect an improve quarter over quarter thanks to a strengthen in its investment bank. wells fargo reporting its earnings increasing from last year, thanks in part to strength in its mortgage business. >> all right. earlier this hour we asked you for your thoughts on which is the true titan of technology. so which company is more valuable brand? is it apple or google? more responses now that we've received from the twitterverse at cnbc "closing bell." robert sanchez tweeted apple by far. customer loyalty. almost bought a google phone, and it made me feel as if i was betraying my wife.

. >> rick santelli on the floor of the cme group.march employment report. 8:30 eastern. expectations about 205,000 jobs. a bit less than the 227,000 headlined last month but the whisper numbers have been higher. on the unemployment rate, many are looking for it to remain unchanged at 8.3. tune in. >>> yes, that will be the report to watch. as jobs data takes center stage, a wave of positive numbers give a jolt of optimism or is the growth we're seeing simply not enough? president of mc global is going to be joining us momentarily. good to see you. thanks for joining us. >> thanks for having me. >> brian, let me ask you, what is your take on the jobs number tomorrow? >> we're expecting just what rick said, 8.3 range, 8.2 range. and about 200, 210,000. >> and i guess we got a suggestion of that when we got the adp numbers out. david is joining us. good to see you. >> hi, maria. >> you say employment is not growing enough? >> that's right. you need to have 300,000 job growth. we might get that tomorrow but probably not. that's why the e

we watched rick santelli show us how easy that is. the benefits to the count rye are just phenomenal and long standing. we have 400 years and we have only begun to look for it. >> what are makes the tush here? i'm a big believer food shortage trade. they have been friends of the devil so to speak. how do you make the call on the fundamentals when the trade has been working sideways at best and with a head wind for the most part? >> all you can do is cast them down on the charts and see when they break them. none of them have yet, but i suspect they shall in the not too distant future. one of the things i learned in the short 35 years is to try to understand one or two fundamentals that may drive the trade and wait for the technicals to turn around. they have not turned around yet, but they shall, especially in the fertilizers. >> what do you make of the current spot price versus the forward curve and where do you expect the disconnect to happen? >> the term structure of nat gas is what's happening in the term structure in wti crude. t

let's go to rick santelli who is in chicago. >> wearing sneakers, by the way. >> if you look at a 24-hour chart of the ten-year yield, it wasn't until we really started to see the traders come close in our time zone. you can see how interest rates responded. then you threw in our data and even though the inflation data was as expected, it will be a bit hotter. it didn't seem to make a difference. a one-week chart is interesting. closing down a dozen basis points on the week. it looks that way at 199. if you look at a one-week chart of the boone, you can see a similar dynamic but they are unchanged albeit a low week. two days ago, midweek, they closed at 164 yield all-time record low yield. if you draw in the dollar index, granted that today when you had a risk off day, it's up. yesterday it was down on the week it's virtually unchanged around 79 7/8. a whisker under that. this is a ten year of the spanish maturity. and we can see it's up about 22 basis points on the week. once again, flirting with that kind of nervous 6% level. maria, bill, back to you. >> thank you very much. as we h

on february 19, 2009, rick santelli, commentator on cnbc, went onto a rant in denouncing obama and his administrations policies to help underwater mortgage holders who he called. [inaudible] he invoked the founding fathers, that they would feel and that all good americans would feel what is happening to our country. within days, conservatives who had been quite dejected following the 2000 election recognized rhetorical goal. the symbolism and begin to organize, using the internet and all kinds of face-to-face methods in communities and regions across the country. they were also cheered on. within weeks they were mistreating within various regions. they were denouncing obama is a socialist or communist or not sumac. within months, they were mounting a hue huge demonstration in in washington d.c., and set to work what eventually became about 1000 regular meetings in states across the united states. by 2010, the mainstream started to take more notes because they were affecting the dynamics of the republican primary, bringing marco rubio three victory over the previous establishment candid

after the government final debt sale of the week, let's go to rick santelli. >> well, indeed. we had $66 billion in tuesday, wednesday, and thursday. it isn't so -- it's pretty normal that after the supply you get a bit of a rally and that is true. look at intraday chart of 30-year. after the number where jobless claims popped up, rates moved towards the low end of the range which was 317 for the third year and then the top of the range to 323. they settled yesterday at 320. we're one basis point higher on the day. much of that volatility see a one-month chart to put it in perspective since the last fed meeting was about what bob referred to and all of the rumors about china's data, putting the risk trade back on. i never believed data rumors but there may be some type of easing. we heard the easing and quantatative easing. risk trade is equities with back to back gains really taking it on the chin today. bill, back to you. >> rick, thank you very. . we are heading towards the close. this will be a very interesting close. hope you can stick around for the next couple of hours.

let's check in with rick santelli in chicago with the details. >> thanks. today's weather was weak.reasury market was, you know, came in with buyers and you can see on the intraday chart. as equities improved,ç solo gas went up. we're at in the range, a little above the halfway mark of the move that started in earnest on the 13th. this explains a lot. it was stronger as the day wore on. it started getting weak. wow, what a surprise. look at the s&ps. exact mirror image. the risks came on as a result of positi positive equities. back to you. >> thanks so much rick. just about 45 minutes before the dow closes for the day. >> however, one leading short expert coming up, why he's calling for an update on the s&p 500. >> plus burger king overhauling its market. the burger wars trade coming next. >>> and then after the bell, is groupon's earnings restatement of last week a sign that investors should be concerned about the tu fur of social media's stocks. we'll get to that. you're watching cnbc, first in business worldwide. how do you ? with scottrader streaming quotes, any way you want.

santelli is in chicago, bob pisani. what a way to spend at headquarter. bertha coombs is at the nymex. david, is it any coincidence that this selloff began after the fed meeting minutes in march where it was suggested -- the implication was that there would be no mormon tear easing from the fed beyond what they've already done? >> the market had been running off quite a bit. this correction is the healthy part of the market. this is a good thing for the market. >> let's not also forget that we've got the first quarter earning with alcoa and everybody expecting very minimal earnings growth, under 1% for the s&p 500. >> bertha coombs, if you're there, the demand level from china is reducing for oil, for example, as we watch a slow down continue there. not to mention the european debt crisis. oil goes lower as demand for china goes lower. >> those numbers helped set the tone following the european close. we've got brent falling below $120 a barrel for the first time in several weeks and now we have wti absolutely flat on the year. the last trade, december 30

rick santelli's tracking all the action at the cme. well, i'll tell you, the fed announcement and statement put a lot of volatility in the markets. but it really didn't alter the landscape of the established range. that was really more the 5-year note auction. look at the intraday charts as you move down the curve. the 5s dramatically effected at 11:30 eastern with the really positive auction. but basically the range was in tact. the federal reserve meeting incited the markets. the 30-year, which involved directly in the twist in terms of buying, people are a little euphoric the twist would get extended. how do i know that? look how it rallied right before the statement. and then it came straight up and broke six basis points. dollar index, it can't hardly hold positive on the day. very little volatility. back to you. >> rick, thank you very much. less than 30 minutes away from the fed's latest economic forecast. it's set to be a market mover. and with rates on hold as the economy actually getting better than perhaps the fed thinks it