appreciate it. >>> over to the cme group, rick santelli has the "santelli exchange." >> thank you. last santelli ex-ching of the week. we could knit pick. too many part-timers, who-of-too many leaving the labor force. generically, a good number. 288 blows my number away. the fed pays attention to this. no matter how you slice it, look at it in ra couple bays. first the technical, i think is key. i've said all along, only two areas on the chart to pay attention to. a and b. a, 266, yield close on the 12th of may. 266. the low yield close on the 28th of may, at 244. now, trant day, traded a bit through this. of course, now we stand at 265. if we don't close above 266 on a closing basis on a day where this data is that well, the market is telling us something. figure out what it's telling us. look everybodydon't -- overseas. what is that telling us, the widest level in 15 years. basically close to 130 in a boon. close 265 in a ten year, difference of 136 basis points. that means relatively spre lly we're better than them. growing better than them. we know that. that's the notional arg

rick santelli at the santelli exchange. >>> meantime, 1974, cashing in a suggestion that this area arounde might be some resistance for the bulls, even when they do have the ball. although they are within 2% of s&p 2000, which would be another big number. >> yeah. the round numbers are the issue. i think the thing to look at, some of the short term trader sentiment indicators, agents overheated. >> with all that, i believe the q&a between lagarde and yellen has begun. >>> in parallel, different circumstances, and i would like to maybe following the stradivarius analogy of michelle, to stay loyal to -- a man today, what would you say? would you say that macro credential tools are second fiddle to the main stradivarius of monetary policy? or would you say that depending on circumstances, macro credentialal toos brk the -- and have to deal with the issues as a first line of defense? >> well, i think my main theme is macrocredential policy should be the main line of defense, and i think the efforts that we're engaged in in the united states but all countries coordinating through -- through ba

. >>> first, rick santelli, what's coming up?> reporter: of course, janet yellen talking to both sides of the aisle this week, i think we they'd to discuss some of janet yellen's comments of late, maybe an upcoming article in a magazine that we have some excerpts from, and decide, should the central bank of the united states of america be more like a baseball umpire? should policy and social policy be in their vocabulary? when you go to your accountant on april 14th, do you want him to be talking about social issues or just kind of deadpan look at the numbers and tell me the facts? we're going to discuss this after the break. i make a lot of purchases for my business. and i get a lot in return with ink plus from chase. like 50,000 bonus points when i spent $5,000 in the first 3 months after i opened my account. and i earn 5 times the rewards on internet, phone services and at office supply stores. with ink plus i can choose how to redeem my points. travel, gift cards, even cash back. and my rewards points won't expire. so you can

rick santelli with today's edition of the "santelli exchange."he first place to start, one hour and nine minutes away from the 30-year bond auction. why is that more important today than any other 30-year bond auction? because i think it's going to give us information. could be a turning point on the day for an equity market that is well off its lows, but also off its best bounce levels. why? it will give us an insights into the psyche of both foreign investors and domestic investors at a time where equities are under a bit a turmoil. contagion, systemic or the fact synonymous isn't necessarily truly snom miss. that's the point today. i would think snom miss ynonymo better way. stabilized is not synonymous with mixed. many over the last year or so looking at europe from the vantage point of stabilized, correct. but stable iilized isn't fixed has darker issues associated to it, because all the things done in europe to stabilize europe, in my opinion, have pulled a lot of the growth that they're not going to get. why? because in essence, they've mo

more on r & d and with partners. >> thanks. >>> over to rick santelli and "the santelli exchange."rning. >> good morning, carl. a lot of talk, of course, about the federal reserve and basically -- let me move my floatation device. fed's balance sheet as of thursday of last week increaseds 12ds.5 billion to a grand total. look at all the zeros. $4.4 trillion. of course, that's 12 zeros. we talked about earlier with our guest, jeff snyder, whenever you look at a chart of the fed balance sheet there's many that will drought charter of the s&p 500, because it seems to follow. corporate profits follow the s&p 500. we're all floating up with the fed's balance sheet, but what happens when the balance sheet stops moving higher? well, many think you could have a fat tail or a doomsday scenario. i'm not sure. i basically think if everything went up with the fed's balance sheet, when the fed's balance sheet goes sideways i have a feeling stocks may go sideways or a very subtle glide back. but the key to that is, that everything is based on what have you done for me lately? so even if we remai

santelli. >> hi, carl.d, you know, canada, given various different schedules of holidays, and a report came out today. employment. a bit negative. not huge. looking for maybe up 20,000, 25,000, ended up down 9,400, but the important thing is unemployment rateic it had up. expecting it to be 7% to 7.1%. actually you have to go back to december of last year to find a higher unemployment rate. why do i bring it up? because i still think we need to look at everything in a global context. we've spent an appropriate amount of attention, of course, trying to decide if what's going on in portugal, is mogul, be just one mouse in the garage or more? one cockroach under the dirty sink or more? but everything fleeds to be vnea global context and the works the other way. yes, the united states on's a relative trade doing better. but the rest of the world will affect us in their direction. that wasn't a great report. let's shift gears a bit. while i'm talking, i'll tell you what the big number was. 170 is 170 basis point

rick santelli has the santelli exchange. good morning, rick. >> morning, carl. happened with regard to malaysia flight tragedy, and we want to get that out there. we'll switch gears a bit, though, because it is our job to look at the markets. and when i look at the markets today and think in the context of the tragedy and ongoing issues and sanctions with russia, i see the euro versus dollar reaching 135 for the first time since valentine's day. is that the message of the market with regard to the story of the day? >> i think that's part of it, rick, but, you know, as we always know -- you can't help talking about it without talking about gold. people who buy gold on geopolitical events, it's a sorry state. i have the scars on the back to prove it. it does not pan out. once those geopolitical events recede, then the gold drops dramatically because it's a silly reason to buy gold. it gets bought for other reasons. the currencies, the euro is remarkably holding up. >> this could put us close to new lows. 135 considering the state of unemployment and economic activ

sara and carl, back to you. >> thank you, rick santelli.prised of the situation regarding this passenger jet, malaysian airliner, that was, crashed near the ukraine border. boeing stock is down, but not out of sync with the general tone of the market. now getting news, response from boeing headquarters saying, "we are aware of media reports and are gathering more information." there's a look at boeing intraday. not the only company we've heard from in the past few minutes. phil lebeau, also heard from malaysian airlines? >> yes. malaysia is saying they've lost contact way flight going from amsterdam to kuala lumpur with 295 passengers. malaysia saying via its twitter feed it's lost contact with mh-17 from amsterdam, last known position, over ukrainian airspace. it says nothing else in terms of what might have happened with the airplane. interesting, carl, because we're getting information rather quickly. a lot unconfirmed at this point, but we know that malaysia is saying, they have lost contact with this plane. >> this was a 777-200. am i

rick santelli with "the santelli exchange". >> thanks, kayla.e certain things in our society that become synonymous, but they certainly shouldn't be. and i think that what i'm referring to here in an aggressive fashion is how debt and income seem to be interchangeable parts from the vantage point of central banks. i'll give you an idea. a consumption economy and the president early in his first term whatted to convert it into an export economy. i understand why and it's funny. china that is an export economy, doing its darndest to create a consumption economy. the backbone of a successful consumption kpip is that the consumption is paid for with actual income. versus debt. give you examples. the big number we had before was 55 and 30. what those are is, the percentage of subprime in the auto sector. 55% for used cars. 30% for new cars. and i'm not saying whether we're going to repossess these cars or not. i'm just looking a the notion of where the horsepower in the economy is coming from. knop the even talking student loans. subprime for 2013 up

rick santelli whose rants on cnbc helped kick off the tea party movement ran into a very loud critic this week, steve leaseman at the same channel. >> he basically told santelli that he didn't know what he was talking about and the footage of their fisticuffs quickly went viral. >> every single -- >> would have lost people money. >> every single bit of advice you gave would have lost people money, rick. lost people money, rick. >> strategy. >> there is no piece of advice that you've given that's worked. >> he this need a better strategy. wait until next week -- >> not a single one. >> oh, yeah, there is. >> not a single one, rick. >> not can do his job or his job -- >> the higher interest rates never came, the inability of the u.s. to sell bonds never happened. the dollar never crashed, rick. there isn't a single one that's worked for you. >> ah, my head hurts. could you even understand a word of what they were saying? this is obviously some sort of stunt or ploy or behalf of the economics reporter to bait him. >> i think steve lease man did a good job. i don't think it's a stunt at

santelli exchange.k. >> good morning, carl. what a day it is, we have a perfect guest for a morning where our markets are asktsed by the european markets that are affected by the ever so construed and artificial fixed income market in the european countries. andy, thank you for taking the time. >> rick, thank you for having me. >> all right. let's start at the top, a lot of comparisons going on in portugal. i actually don't think that's the case. i think the fat tales aren't going to happen. ooo-ey think we'll continue to squeeze what type of future economic horsepower we can get and the reason wee squeezing it, because we're basically mortgaging part of it in the future to do things like keep rates in the european southern economies artificially low and we see that's breaking down. let's hear your interpretation, andy. >> well, what'ses going on, rick, the second largest bank in portugal basically missed an interest payment sending bonds, trading a one-year piece, trading par on june 23rd, trade as low

rick santelli. >> hi, carl. comparing highlights of stanley fisher's speech. i remember reading things like this many decades ago in college. interesting. but the long and short of it is, it doesn't seem he's exactly on the same freeway as janet yellen. your thoughts? >> definitely. he talks about the limitations of the financials and only tried in smaller economies. >> stop. macro prudential. basically regulations to try to change outcomes. >> correct. some can affect the overall system, which is good, and some are directed to look at definite asset classes and takes the ball away from raising interest rates, because in the fed's own words, raise interest rates, gets into all the cracks rather than that at an asset level. >> take it one at a time. works in smaller economy es. makes sense. you're telling me a handful of very smart people, many of which never worked outside of government or agency, can't probably control something like the u.s., might have better control for a country like israel? >> if you try t

carl, back to you. >> bertha, thanks. >>> hop overer to the cme group, rick santelli and get "the santellick? >> hi, carl. well, any of you kind of wonky technicians out there? boy, you're going to have to take your list of gdp data and you're going to have to go through it. a lot has changed. today's number. hit the highlights. definitely more than expected. inventories added 1.7. i think that is huge. even the, of course, the government acknowledges that the first look at gdp is incomplete and gets more complete. always lots of revision, but it what it is. i find this fascinating. personal consumption up 2.3. core up 2%. here what i was talking about before. look at minus first quarter that we've had this century. okay? there's been seven minus quarters of gdp in this century. five of those seven have been first quarter numbers. now, if we look at the first quarter number with the second quarter number and average it out, comes out to basically rounding, 1%. now before all of the data, i did research on this topic, and before the data was all revised, q1 of 2011 was minus 1.3, q2, 3.2. n

rick santelli, "the santelli exchange. >> hi. in the frame. making progress here in chicago.en, we're making progress on the economy as well. i talked to peter bookfort today. i give credit to a real straight shooting economist. when i asked peter, what i hear from so many of my sources, how far do we use our shovels to dig into economic data? and his answer actually was a good answer. keep it apples to apples. seasonally adjusted data, whether looking at jobs, you know, various economic data points, that it is very much contagious right now to dig deeper than we used to, because so many things just aren't adding up quite right. now, today we are getting a big correction. the fact that the nasdaq is leading it does make some of my training sources a little bit happy, because that seems to be where the most whipped euphoria happened to have been residing in that sector, but look at friday. 288,000 jobs. look at the jolts report today. granted, there are issues. 19% year over year may to may on the job openings, up 19%? that isn't bad. 15% on quits. why is that good? because if

out after the bell today. >>> and rick santelli is standing by whip "the santelli exchange." rick? of the van titi has to be up there. talked about the 244 yield many times. may 28th, low closing yield, for the year. we've had six sessions that have included the 246 yield, but today we've had the best kickoff intraday coming off that level. it's holding exactly where it should. gdp comes out wednesday, the 30th. our first look, second quarter gdp. i think i bet a bunch of bags of hamburgers it wouldn't be 4%. maybe i need two bags, because it doesn't look like it's going to have a handle. most estimates between 2.6 and 2.9. inversions. everybody's talking about inversions, as well she should. tell you what, if you look at it from the lens, or through the lens of patriotism, i think you're wrong, because i was wrong. here's the analogy quickly. in the late '70s and early '80s, cars made by american car companies were not great cars. but i love my country. and i was just hard and fast buy america! i was wrong. because a real patriot buys the best product. and those who were smarter t

the santelli exchange.things that are interesting and then all my sources e-mail me that same thing i found fascinating, it's something i'd like to share with you, so some food for thought in form of the chart. this is from leverageloan.com. i like that website. throw the chart on the screen. this shows leverage loan, that's following six-month low in june. see the chart? why is this important? well, on the website, here's the boilerpla boilerplate. the management of low mutual funds contracted by 2.6 billion in june, shy of 170 billion according to data own fund filing, the largest dollar amount of august 2011. something to pay attention to, you know, in the current market that we are finding ourselves in, whether me in the news business or investors, they are digging a little deeper because as i said, market signals are lost to some extent, but all the liquidity in the system by central banks. now, we're going to switch gears to another area of food for thought of the wonderful alpha conference, we had se

rick santelli is in chicago, rick? out late, five after the top of the hour, we've seen decrease in the equity markets and slippage in interest rates already at much lower levels than we have in the last several days. why? because the may job openings and labor turnover, first of all, increased 171,000 job openings to a grand total of 4.36 5 million. wow, let's do forensics. that's the high water mark now. today's number usurps march of 2007. it is the high water mark on job openings and labor turnovers. intrinsics are bullish. first time since 2007 you had four numbers in a row over 4 million. no matter how you slice it, this number slows some horsepower to it, so we need to find out what's so discriminating these days about the fixed income markets that's globing on to the notion that interest rates can't go higher, and that's what we talk about for the rest of the day. back to you. >> all right, rick, thank you so much, rick santelli. >>> in a year when luxury auto sales are up 4%, there's only one brand seeing sale

carl, back to you. >> thank you, rick santelli.ome back, interview with blackberry ceo, john chen. stock up almost 40%. is the worst over? speaking of ceos, spencer rascoff of zillow on his company's deal to buy trulia, live and first on cnbc later on "squawk alley." in a world that's changing faster than ever, we believe outshining the competition tomorrow quires challenging your business inside and out today. at cognizant, we help forward-looking companies run better and run different - to give your customers every reason to keep looking for you. so if you're ready to see opportunities and see them through, we say: let's get to work. because the future belongs to those who challenge the present. as long as i've lived in iowa, (strauss' blue danube playing) yyyup. with xfinity internet soyour family can use all their devices at once. works anywhere in the house. even in the garage. max what's going on? we're doing a tech startup. we're going public! [cheering] the fastest in-home wifi for your entire family. only from xfinity. >>>

. >>> first, rick santelli, what are you watching? >> reporter: we're watching things like plans.o we have an energy plan? do we have a tax plan? we do. we've never adopted any. it seems as though right now the main plan for just about everything is this. and we're going to tell you why and why it isn't best right after the break. the ca♪illac summer collection is here. ♪ during the cadillac summer's best event, lease this 2014 ats for around $299 a month and make this the summer of style. we do? i took the trash out. i know. and thank you so much for that. i think we should get a medicare supplement insurance plan. right now? [ male announcer ] whether you're new to medicare or not, you may know it only covers about 80% of your part b medical expenses. it's up to you to pay the difference. so think about an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. like all standardized medicare supplement insurance plans, they help cover some of what medicare doesn't pay and could really save you in out-of-pocket medical costs. call now. with a medic

rick santelli.we return, the man you want to hear from on microsoft. 18,000 job cuts, stock at a 14-year high. back in just a minute. [ male announcer ] we know they're out there. you can't always see them. but it's our job to find them. the answers. the solutions. the innovations. all waiting to help us build something better. something more amazing. a safer, cleaner, brighter future. at boeing, that's what building something better is all about. ♪ at boeing, that's what building something better is all about. in a we believe outshining the competition tomorrow requires challenging your business inside and out today. at cognizant, we help forward-looking companies run better and run different - to give your customers every reason to keep looking for you. so if you're ready to see opportunities and see them through, we say: let's get to work. because the future belongs to those who challenge the present. >>> what a ride it's been for microsoft. new ceo, new cfo, xbox sales doubling, and getting lean

tyler, back to you. >> thank you very much, rick santelli. market, as rick just referenced, selling off today on concerns over the european banking systemsystem s specificically portugal. with me, alan reid, ceo of forward and chief investment officer at pioneer investment management. welcome to both of you. alan, you say you wouldn't be surprised to see a 5% to 7% pullback in the u.s. market and, ken, you say you wouldn't be surprised to see a big rally in the second half of the year. maybe those two things aren't mutually exclusive but on the surface they seem so. make your case first, alan. >> first off, what we're saying is that if you look at the vix it's been trading ten to 12 range. historically it's been more in the 15 range. my predictions pay off. we're seeing it right now. what i'm saying, when you think about volatility in the marketplace. we've seen an opportunity to actually buy a bunch of puts in the parkt. cheap insurance. we've done that with a real estate long short funds. and so those have been areas that we're seeing oppor

don't miss that. >>> and over to rick santelli with "the santelli exchange" for us.hanks, sara. like to welcome our guest, beaterman, beaterman, beaterman. welcome, chuck. thanks for taking the time. >> good to be with you again. >> let's start at the top. we had a nice jump on the compensation in today's employment cross-index data and offerings out there, and you think it might be the last of the big time offerings. why don't you sggo into both of those? >> $11 billion of new offering today and tomorrow. a huge amount of cash to leave the market. to me that's why we have the main -- supply and demand. all of that money leaving. stock prices of the remaining shares go down. so -- and this is the last of the new offering calendar until september. so august should be a decent month, assuming corporate buying continues and -- beware the ides of september. >> and tying it to a line everybody talked about. underutilized labor market. what i would sassume that to mean, and sure that's not what they meant. i suspect people out of work are coming back soon. the people left

arthur cashin and rick santelli. welcome back, everybody. art, we had private payroll numbers and that didn't boost the number today. i guess everybody is waiting for the government's number tomorrow? >> it looked like it might be too much of a good thing. he saw the yield on the ten-year spike sharply after the number came out. and the stock futures looked to turn better, they saw that yield go up and they said, uh-oh, that may present a problem tomorrow. depending on what the number is, it may have a potential impact on the yield and that in turn will have an impact on the discussion about when the fed moves and how they move. so caution is in the air and that's why we're not moving any further. >> this reminds me of something that was said this morning. rick santelli, what happens if the data is finally strong enough if this bond market starts to believe it? >> well, that would be a wonderful thing. it's going to bring higher interest rates. but on that topic of success, this was a great adp number, the greatest since around november of 2

for the santelli exchange. have one of your favorite people here, ira harris. we talked about mr. carney and janet yellen. seemed like they changed the dynamic from two weeks ago, putting the ball on the other side of the line, and that, of course, listen, we're snugging up, and it's inevitable, but he has backtracked that. >> walked back a bit. last week, talked about following in yellen's footsteps, unemployment numbers may not mean what they mean, and there may be more slack in the system. plus, they now want to attack the housing situation, especially in london that's getting somewhat out of control by their own words, not putting words in, that's what they said, with macroprudential tools. >> a word invented to put their nose in a bigger place. >> a bag of tools that we don't have to raise interest rates that get into every crack. we can attack where we think may be somewhat of a bubble -- >> are they scalpels? >> they would like to think, not that the british economy is big, but far big r, seen in new zea

rick santelli, what is the auction doing right now? >> $35 billion of five-year notes just hit the streets. the grade on this auction demand wiz is strait up. a-minus. very solid auction. the yield 1.72. the offer side of the one issued market was 172 1/2, the low yield in the one issued market was 169 1/2, so this was super sold, 2.81 bill to covered trumps the 2.72 ten auction average. better than average on indirects at 48.2. 25.9 on directs, best since december of 2012, which means the dealers -- what did they end up with? dealers took a significantly less chunk of the auction based on the directs. don't have the final figures, but a-minus. back to you. >> thank you very much, rick. another big story this hour ahead of the fed meeting results, the cnbc fed surveys, steve liesman focusing on growth and your first graph is very interesting. >> scary? >> a little bit, yeah. >> let me show you why it may not be or is overly optimistic. what's happens is the growth framt for 2014 and '15 have both come down. this is percent change year

. >>> going to the bond pits standing by with rick santelli, rick?day in treasuries, the epicenter of the digestive process, definitely better than expected jobs data and little discussed drop in the trade deficit. let's start at the top. everyone's talking about the two-year. why? because it gives you a good proxy for the markets for the times of the federal reserve, and even though briefly looking at the chart going back to may of 2011, and you renched it, david, the 35 53 points and the chart moved right, it's now september of 13, but we want to watch it. april 3rd of the five years since these yields. next chart, the tens, april 29 since being here, and more important, may 12th, 266 yield close. if we close above that, it's very meaningful. if we don't, people selling looking for higher rates will be disappointed. years to date on tens minus twos, it's steepening, counterintuitive, and index after all this is up a quarter cent on the year. back to you. >> thank you very much, rick santelli. >>> coming up, breaking down dow 17,000. plus, hurricane

our josh lipton. >>> going to rick santelli for the santelli exchange.u for taking the time today, andrew. >> thank you for inviting me. >> you wrote many articles that i just read and reread about how there's a whole lost generation of young people that just aren't being integrated into the labor force, and being the ceo of a large restaurant chain that employees, what, over 70,000 people, you know about youth employment or lack therein, maybe you can explain. >> well, we do employ young people. the restaurant industry is famous for entry level jobs. it's how i got my start, scooping ice cream for minimum wage back in 1966. it's something i'm familiar with, something that our company is familiar with. unfortunately, they are the jobs disappearing in this economic climate, and that's why i wrote the articles to see if we can try to reverse that. >> i'll put a quick face on it, and maybe you can tell me why they are disappearing. 16 to 24-year-olds in the u.s., that group is roughly 13% unemployment. excuses, well, they are going to school, but there's cl

back to you. >> thank you, rick santelli.rt kuehn and his company's earnings this morning coming up on "squawk on the street." (vo) rush hour around here starts at 6:30 a.m. - on the nose. but for me, it starts with the opening bell. and the rush i get, lasts way more than an hour. (announcer) at scottrade, we share your passion for trading. that's why we've built powerful technology to alert you to your next opportunity. because at scottrade, our passion is to power yours. i'm spending too much time hiring and not enough time in my kitchen. [ female announcer ] need to hire fast? go to ziprecruiter.com and post your job to over 30 of the web's leading job boards with a single click; then simply select the best candidates from one easy to review list. you put up one post and the next day you have all these candidates. makes my job a lot easier. [ female announcer ] over 100,000 businesses have already used zip recruiter and now you can use zip recruiter for free at a special site for tv viewers; go to ziprecruiter.com/offer2.

let's get down to bob pisani and rick santelli. >> the reaction down on the floor there? >> i think most of the traders are talking about slack in the labor market, a range of labor market indicators suggest that it remains significant underutilization of labor resources. let's look at the markets here. we actually moved up. i think, and i'm just checking with people down here, the general feel is that's a keep paragraph here right now. there's a little move up. oftentimes markets move down. i think it's probably related to that. most other people also pointed to a slightly more hawk sish comments. somewhat closer to the committee's longer-run objective, but that statement, a lot of slack remaining in the labor market is the tip-off from the fed, they're going to continue to keep interest rates low. remember the overall concern. statistic morning -- quicker than expected p. the interest rate sensitive sector, because that's been weak all throughout the day, so the consumer staples all have underperformed. the markets if the economy improves, so the telecommunication, the

santelli, you can answer that first.for yes, text b for no to 67622 and you can always go to ed.msnbc.com and let me bring in bruce bartlett, former reagan adviser and bush 41 policy adviser. good to have you with us tonight. >> happy to be here. >> you bet. i'm going by the numbers. can republicans continue to slam the obama economy? when are they going have to come to grips with what has happened and where we were and where we are? >> the short answer is no. never. they will simply continue to tell the lies that they've been telling for some years and i was glad particularly to see you talk about the horribly negative effects of allowing the bush tax cuts to expire. if you can go back to january of 2013 i predicted a bull market in the stocks when every republican was selling everything they owned and buying gold for the inevitable hyperinflation. so maybe these people are ultimately hurting themselves. >> what would the economy be like, mr. bartlett, without republican obstruction? what if we did have a jobs package?

santelli, but the tea party has been wrong over and over again.dip below $600 billion for the first time since the recession. they were wrong. that big bad affordable care act, it is working. even 74% of republicans like their plan. they were wrong. on jobs, 52 the straight months of private sector growth, they were wrong. so we heard all the dire predictions. but the reality is they were wrong. i'm sorry, tea party. you can have your opinions, but facts do not lie. thanks for watching. i'm al sharpton. "hardball" starts right now. >>> oops is not a foreign policy. let's play "hardball.." >>> good evening. i'm chris matthews in washington. let me start tonight with a big civil war that's broken out in the republican party. i'm talking about the iraq war fight.

rick santelli what are you watching today? >> sometimes things follow you around.rning the first thing on my clock radio that woke me up, talking about michael lewis, graduate of princeton. the book i put down last night before i fall to sleep. ed with with-woodrow wilson. the big number today, 58 million. dune in after the break. financial noise financial noise financial noise ugh. heartburn. did someone say burn? try alka seltzer reliefchews. they work just as fast and taste better than tums smoothies assorted fruit. mmm. amazing. yeah, i get that a lot. alka seltzer heartburn reliefchews. enjoy the relief. hard it can be...how ...to breathe with copd? it can feel like this. copd includes chronic bronchitis and emphysema. spiriva is a once-daily inhaled... ...copd maintenance treatment... ...that helps open my airways for a full 24 hours. you know, spiriva helps me breathe easier. spiriva handihaler tiotropium bromide inhalation powder does not replace rescue inhalers for sudden symptoms. tell your doctor if you have kidney problems, glaucoma, trouble urinating,

on the better jobs report, rick sen ta santelli, over to you. >> 281,000 is a good jobs report. how much information or how indicative will it be of tomorrow's number. you can clearly see we're up on rates, down in price, parallel shift on the yolker. interest rates 5, up 5 basis points. open up the chart. these will be the highest yield closes for five year since the 23rd of june. if we look at a ten year, same thing. 815 eastern. boom, rates go up. treasuries sell off. also up 5 basis points. open the chart up. these could be depending on the final hour or two the highest yield closes since the 17th of june. and everything is logical on every sector. dollar index as you see on the interdate chart is up and getting very close to testing unchanged on the year from the bottom up. back to you. >> yeah. dollar's been moving with the yield. thanks, rick. over to dominic chu. >> gravity has taken close of one of the helium stocks. this time it's gw pharmaceuticals. off the session lows. still down 4 1/2%. investors looking to take profits in the stock. it had been up more than 50% ju

let's get to rick santelli in chicago with some breaking news in the bond market right now. two-year notes up for auction. >> 29 billion of those bouncing two-year notes just hit the hands of investors. yield .544. the market was .545 bid so it's right there. with regard to the grade, i gave it a c. you'll be able to see why. it priced where it should and bid to cover was light. everything else nailed the average. a very average auction. remember, the yield .544 i just mentioned, highest yield at auction since may of 2011. i think that's probably the most interesting factoid revolving around this particular auction. back to you. >> rick, thank you very much. steve liesman now. big week for economic data. jobs, gdp, two-day fed meeting, housing data thrown in for good measure. you argue this is the most challenging week for chair yellen so far. >> it could be. they interrelate. the big risk for investors is whether economic data comes in at odds with fed policy. it could present janet yellen with the first test of her tenure. should be $10 billion taper bringing it down. it w

let's bring in bob pisani, rick santelli, don't take sides. let's be objective. journalists over all of this. bob pisani, you know, i would say that maybe it's a little bit of everything. when you've got a market that is at or near all time high, right, it doesn't take much out there to upset the apple cart. >> this has a lot to do with valuations and bonds and stocks. some part of the market that i think are frankly silly. bonds can get over valued just like stock. i said all week. silly valuations and internet names as well as in some small cap tech names. i'm glad the russell is down. some people in the market are saying, hey, fellas, does this make a lot of sense to spend 150 times forward earpings for pandora? really? maybe it is but at least somebody is asking questions and the same thing for peripheral debt. is question isn't why didn't it go down, the question is why in the heck did it go up so much in the first place? that's your providence, rick santelli. >> i think that's an easy one. >> rick -- >> go on. go on. >> no, no, no. to bob's point, why are s

rick santelli, he make as good point about the fact that very few thing, working today. 200 points. s&p down now 30 points. 1940. gold down, oil down. really, the dollar, the only performer of any sort today. de keep your eye on 16576 on the dow. the level we began the year. 16,576, basically, 101 points actually -- no. not even that. above that level. start talking about dow being negative for the year if the trend continues. >> and the month, worst since april. only two down months so far this year. carl, the trend has generally been positive, but we are near the break-even mark. in the nshg space, too, exxon, mobile, connick ccoe, and to rick's point, always a big part of the story as well. >> you can't forget the idea, too, the jobs number is tomorrow. we'll get a lot more data, not just about participation and unemployment, the degree wages of changing in the country. -th and the m & a picture, david faber with more on what this means. >> i wish i could give you more. i made a round of phone calls, you might expect, after the dow jones headlines. unfortunately, don'

never share y to share their ow opinions, steve liesman and rick santelli. that debate starts now. the market doesn't seem to be overly concerned with that question. should it be? >> reporter: well, i don't think it should be overly concerned or underwhelmed with regard to concern. i think we need to get back to a more steak and potatoes mundane, less volatile form of central banking. we are not in a crisis. and janet yellen and ben bernanke still treating the economy as though it's in crisis. equity traders don't seem to be too bugged because they know in the end, what's in "the new yorker" that i've read, easy money will outlive any types of tailwinds -- excuse me, headwinds to the economy. and i think that's what stock traders are looking at. >> you're suggesting that the longer the fed waits to raise rates, the harder time the market is going to be able to digest that. and also the dangers of inflation coming into the picture down the road. is that what you're putting forth? >> reporter: i think you've just listed two unintended consequences. i think that the litany of unintend

let's go to rick santelli. good to see you. >> good to see you, too. thanks for taking the time to join us today, mark. >> you're welcome. >> so last month we lopped off 62,000 when it was originally released to 405,000. you have to go all the way back to april of 2008 to find a number in that area. so big difference. peter book farr, friend of cnbc, e-mailed me. new home sales is 425,000 and compare that to the average of all of 2013 at 430,000, give me your comments on all of that and today's number in general. >> today's number was kind of shocking down 12% year over year. the big revision in the last month. remember, demand always precedes or sales volume prices. our next price, rick, has to be lower prices. people need lower prices to buy houses. this is clearly not a supply problem. we've clearly changed trend to demand destruction in both existing sales, new home sales, starts. it's all looking the same. one or two months you might be able to blow off but after this many months, this far into the year, this nuclear fed policy for this long at ze

let's go to rick santelli. good morning. >> morning, carl.art of tens, covering this at 1:00 eastern, wow, yields are up a little, a base point and a half, and the true trading truth, yes, yes up today, but the readjustment to the downside of rates and upside of price. open up to june 1st should we sell off pushing rates up, there is a boat load of wood as you see on the chart from 266 to 272 which means until we close above 266, 267 most traders are going to look at that as very tough resistant to get through and close above. look overseas. remember the comments? everybody's 2014 look aheads of last year, the stabilization dance. the fact that the central banks of portugal, greece, spain, ireland, they all basically own and bought their own paper and everything was great as yields plummeted. portugal missed payments, world thrives on overnight funding, boom, rates pop up. look at the two-day chart, going to challenge 4%. to give you a better context, this is not like it's back at 5% or 7%, but it's something to pay attention to. open the cha

with the santelli exchange. >> thanks, simon. saysich. i like to tie things up. no rules followed. rule-based is out the window. whether it's the case just outlined now, where subsidies, laws written, need to come from the federal, not the state. >> right. >> everybody knew this. just like everybody knows the federal reserve is kind of righting this as they go. is this one of the reasons yield curve is flattening? one of the reasons, long end can't get traction for higher rates? because it sees this landscape is not conducive to anything. from health care to business, to banks? >> well, they're certainly putting a lot of doubt in people's minds what's going to go forward, because you would think in a growing economy we'd see longer term rates start going up the ten year, pushing towards 3%. we're nort seeing it. is it geopolitical? uncertainty? a combination. >> geopolitical and weather, i'll stop you. always where everybody wants to shovel all question about call because it's easy to deal with. what do you see in the energy mark

we'll talk about that on "santelli exchange." look at two-year note yields. highest yields should they close in this zone since may of 2011. we'll call it over three years. let's look at the spreads. many are saying that the flattening has nothing to do with the fact that the economy's underperforming. but this augers differently. as you look at the one day, on the two-day chart it's a makeup for yesterday's flattening that put it at the flattest since june of 2013. let's stick with the theme of flattening. look at 5s to 30s. it still didn't overtake settlement. it's a new fresh 5 1/2-year flat. we continue to see the long end, even though yields are going up with all this flattening because the numbers were better, it's not going up as fast as the short rates. let's look at this chart of 10s. if it's holding that 2.44, low yield closed ant 28th, according to technicians, we could actually see a higher rate scenario. the euro didn't respond well to sanctions or the data today. new fresh lows going back to november 2013. carl, back to you. >> rick, thank you s

and our own rick santelli. anthony, i'm going to start with you. the tone of the market lately, we've seen very defensive issues moving higher. utilities are actually up today, while the secondaries, the small cap stocks are getting clobbered here, which would suggest that this market's anticipating some economic weakness. what do you think's going on? >> well, i think that if you look at the bond market and you see bond yields coming down to 256, that is a little bit of nervousness. we know that earnings season is coming upon us, you know alcoa's going to report. you'll see a major financial institution reporting on friday. so, i think this market, they really need to see real evidence that the economy is getting better. i think the employment report provided a nearby preview to an improvement in the economy. now they need to see if there's proof that this improvement in labor market condition's going to translate into better economic activity in the second half of the year. >> all right. i'd like to know, winnie, rob, mark, to all of you here, ar

from jpmorgan private bank, dennis gartman is in the house with gartman letter, and our own rick santelli joining us as well. keith fitzgerald, we keep hearing it's all about earnings. what do you make of the earnings? have they been all about this market right now? >> well, 78% of the companies that have come in have reported beats. you've got growth of 6%, i think it's bottom line, 3% on the top line, or maybe i have my numbers reversed, because i was looking at them. generally, productivity's rising, earnings are looking good. it's the rally everybody loves to hate, but if you're not on board, it's an expensive mistake right now. >> by the way, the theme of the credit boom is something we're following. steven parker, little noticed perhaps to the broader public, but important today, the money market fund ruling out of the s.e.c. could mean a lot of corporates, for example, take their cash out of the funz. if they put them in some of the growing popular instruments like an enhanced cash fund that pimco offers, for example, the kinds of things that reach into different parts of the credi

in the meantime, something rick santelli no doubt had opinions on.rning, rick. >> not only an opinion, tomorrow, a special guest. tell you what, i've seen a lot of these testimonies over the last 35 years, and this one's pretty exciting, and a lot of it is based on the federal reserve accountability and transparency acts of 2014. it's a house piece of legislation. of course, the congressional leaders in that room understand it pretty well, because they wrote it. i guess we could debate the whole notion of counterfactual, but usually when conservatives come up with counterfactual arguments to try to look at things through a different prism, regarding some of the programs and things question after the credit crisis, it's always pretty much thrown out. if really was a big line of against, and janet yellen defending what she called operational independence. and i'll tell what you, operational independence, to me, sounds as though, you know, we will do what we want, when we want, how we want, and basically that's that. so i think it's very fascinating tha

that a word today spiritual santelli to national asked formpany protection from creditors bid it says it is unable to meet obligations due to a significant part of assuring. second-quarter earnings matched analyst estimates. net income rising 13% to $3.5 billion. and michael dell tweeted out today that his company will indeed accept bitcoin for computers. dell is excepting the virtual currency for consumers and small businesses in the u.s. in a trial run. >> thank you so much. president obama says the evidence so far shows the malaysian airline -- he calls on president vladimir putin's and support for the separatists. he did coke more from the white house. -- some ofthe wrong the strongest words talking about the shooting down of the malaysian jetliner. it was too surface-to-air missile from the rebel controlled area in eastern .kraine it suggests the russians themselves played a role in the takedown of this aircraft. they also said that it was clear that the separatists would need technical assistance from the russians to make that happen. the ball is basically in vladimir hooton's r

and it's not rick santelli. you don't want to miss that. harold ford and john sununu say new laws for regulation to treat the lab like a utility could cripple job growth. they'll explain later on the "closing bell." >>> welcome back. we started with a quick market flash. courtney reagan, what's going on? >> that's right, kelly, check out shares of apollo education group, the stock getting hammered in the after-hours trading session after the company announced it has been informed by the department of education that it intends to conduct a review of the university of phoenix's financial aid programs. right now, shares trading down 7%. kelly, back to you. >> big hit for them, courtney. thank you. >>> well, we do know the fed will raise interest rates at some point. we just don't know when. but my next guest says the fed may already be too late to stave off inflation because of what he calls institutional inertia. ian shepherdson is chief economist at pantheon macroeconomi macroeconomics. ian, good to have you on the line here. listen, you're

we are back if just a moment. . >> let's get to rick santelli.ure you love gym i jim grant's stuff. >> reporter: jim grant is the best. when it comes to an entertaining piece of journalism and analytics regarding the credit markets, i don't think anybody can do it better. >> thank you, riblg. >> thank you, you are welcome. but guarn teed number, actually he didn't. we may have a better number tomorrow than what we were thinking. maybe it's a catch up from that horrible down 3% quarter. maybe there is a little pent-up demand for something somewhere. >> reporter: i can't speak to that, there are people that want to create numbers and ultimately be the same numbers from bls. earlier, there is people in the purchasing manager business that want to recreate numbers. so, yeah, we're seeing rep plex /* /- replication. i can tell you it was worth 2.5 basis points the dow futures prompt up 18 to about 25. they're back down a bit. but, yes, are you right. whether it's the irs, the dog ate their homework or this number and everybody copies everybody else's

rick santelli at cme group in chicago. take it away. >> good morning.ou don't need economic data, which there is none today. the inversion tax issue is its own economic fundamental for any of those who have questions to why we're operating at such a neutral type speed, and jack lew, let's face it he's not going to give you unvarnished view how to fix it or why it isn't fixed but needs to be. train day of tens, up on basis point. two-day, challenging on friday's train day's highs but hasn't punched through. maybe the most important chart open it up, these are basically the highest -- excuse me, what a fraudian slip, the lowest yield closes in six weeks. look at the yield curve. we know that it's been mostly about flattening. i continue to look at one of the wider spread trades, 5s to 30s. 5 to 30 now under, under, what, 1.70, around 1.6, close to the lowest and tightest it's been since september '09. look at may 1st charts, may 1st on the ten-year, yes it came within several basis points of 4%, it's moving lower. i don't know if there's lehman momented i

ron insana, to rick santelli, breaking news in the bond market. >> 29 billion, and remember, the old guy. like everybody sold off. that the grain -- the ultimate yield, 2.25, which 2.5 was the bid to cover. a little higher than 42%, and one off the rails, 15.2, the lower since july of 2012. charlie minus, but qulo know that any issue could have done we had today with the selling pressure. tyler, back to you. ricks terr, back to you. bertha? >>> humana taking a hit after the health insurer said the second quarter profit fell 18% because of a spike up in benefit costs offsetting -- humana is off 5.85%, that's taking other scherrers with it, including wellpoint. wellpoint reported better numbers, raised the outlooks, and said it's okay where medical costs are as aetna has said. there's still a debate as to what's happening and who can really handle them right now. >> bertha, thank you very much. >>> with the focus on the economy and of course the fed, where are -- let's ask jill kuhn i have, seeing over $28 billion in assets, including one of the nation's first-ever mutual funds, and le