and if you don't need to substitute anymore. >> are these dividend yielders, is that a dead trade? is this dead money, as we're seeing rates higher? >> for the same reason as that, i don't love the home builders. they kind of got smacked up a little bit, historically. that's been a classic by the dip sector. but melissa, i've got to tell you, we're not going to know the impact of this rate, of this drastic jump in rates that we've had over the last months for like two or three months. case-shiller. we've got lagging data. i don't know what the impact is. i don't think it curtails the housing recovery. >> i think those are separate questions, right? i mean, rising yields may not necessarily kill the housing recovery, but in terms of the hold building stocks, that could be a completely different story. >> i think they started at too high of a valuation to begin with. they've came down quite a bit, but i would rather -- if you want to play the home building recovery, i think you stick with region fall banks, wells fargo even. but i do think all the utilities, the consumer staples, rei

and focus on high yielders in times of trouble to reduce your risk.y with cramer. >>> i've been teaching you how to handle the inevitable corrections part of stock market survival school. going over the things you can do to minimize your down side. check your portfolio against action that's nasty. even the original sequester scares. i want to go a step further. in order to deal with increased risk from a market that's going up a great deal and many consider to be frothy, you need to understand what the risks are. you need to know what might cause the next sell off. you need to be familiar with forces that are causing your stocks to get hammered, that you may not even know about. in other words, when the market corrects, and you know it's going to have to, you need to know why. you need to know what's really hurting your stocks. now we like to think that when a stock goes up and down it's because of what is happening at the underlying company. that's quaint, people. companies do well get a higher stock price and if they don't get they lower ones. that'

as much as we like high yielders, you don't want to buy mass limit pipelines. the reason?y tax advantages. you could end up giving up that and paying bigger taxes. it's just not worth it. it's too hard. too many people said jim, it's too hard. the same rule can hit you with certain real estate investments. but, in general, we send out higher yields that are worth your i.r.a. consult your tax professional. that's all up to the individual. >>> beyond that, you're looking for high-yielding stocks. a company better have enough earnings to cover the pay out. these can be powerful contributors over time. even as they might seem sleepy over the dividend stocks. those can pan out. don't be afraid of owning plain old beering utilities. the con-eds and the dukes. they've made you more money if you've reinvested them. the best way to prepare for your retirement is putting mu intinga tax-favored vehicle. the goal here is to be able to reinvest your dividends, let them compound year after year after year without paying any taxes until you enjoy your money at the end. that's a terrific

. >> we've seen the higher dividend yielders sell off a bit as the markets are going higher. average person's portfolio still if you believe that rates are rising and markets are going higher? >> they have a place but it's got to be under weight. something like utilities has two strikes. one it is defensive so you don't get the full kick from a rising equity market and it's used as a bond substitute. the problem is prices move up and down together. things like reits, telecom utilities are vulnerable to higher rates. >> within technology i would think you like the ones to pay dividend sort of like a double kicker? >> not necessarily. i'm just looking for the growth because, again, the higher the dividend is the more people are buying it for a bond substitute. that's what you want to try and avoid when rates are rising. >> thanks for joining us. david kelly of jpmorgan. google unveiling its brand new nux us tablet today. could this prove to be the one gadget that ends up becoming the ipad killer. a look at some of the biggest stories sure to rule tomorrow's tape. nding exhilara

current environment, but it is absolutely worth watch to see if the mark has saved it over the high yielderss the bottom line. we have three sex ipos coming over the next two weeks that are worth getting a piece of that i want you in. >> buy, buy, buy. >> retail me not, and get out once it starts trading. >> well, if you get in on the ipo they'll sell some shares on the first day and then sweeten if you let the rest fly. >>> coming up, supermarket, milk, cereal, let's see, how about adding some stock to your shopping list? grocery kingpin kroger just swallowed up a rival chain, but can this food phenom now go from stagnant to stealth mode? put some shares in your cart or leave it on the shelf? cramer decides. oh, he's a fighter alright. since aflac is helping with his expenses while he can't work, he can focus on his recovery. he doesn't have to worry so much about his mortgage, groceries, or even gas bills. kick! kick... feel it! feel it! feel it! nice work! ♪ you got it! you got it! yes! aflac's gonna help take care of his expenses. and us...we're gonna get him back in fighting shape. ♪ [

the only free lunch and focus on high yielders in times of trouble to reduce your risk.tay with cramer. ♪ [ agent smith ] i've found software that intrigues me. it appears it's an agent of good. ♪ [ agent smith ] ge software connects patients to nurses to the right machines while dramatically reducing waiting time. [ telephone ringing ] now a waiting room is just a room. [ static warbles ] if you have high cholesterol, here's some information that may be worth looking into. in a clinical trial versus lipitor, crestor got more high-risk patients' bad cholesterol to a goal of under 100. getting to goal is important, especially if you have high cholesterol plus any of these risk factors because you could be at increased risk for plaque buildup in your arteries over time. and that's why when diet and exercise alone aren't enough to lower cholesterol i prescribe crestor. [ female announcer ] crestor is not right for everyone. like people with liver disease or women who are nursing, pregnant or may become pregnant. tell your doctor about other medicines you're taking. call you

current environment, but it is absolutely worth watch to see if the mark has saved it over the high yieldersere's the bottom line. we have three sexy ipos coming over the next two weeks that are worth getting a piece of that i want you in. >> buy, buy, buy. >> retail me not, and get out once it starts trading. >> well, if you get in on the ipo they'll sell some shares on the first day and then sweeten if you let the rest fly. >>> coming up, supermarket, milk, cereal, let's see, how about adding some stock to your shopping list? grocery kingpin kroger just swallowed up a rival chain, but can this food phenom now go from stagnant to stealth mode? put some shares in your cart or leave it on the shelf? cramer decides. [ female announcer ] crest + scope gives you the ultimate in fresh breath. so you have the courage to jump in... ♪ or make sparks fly. it's the only toothpaste that combines the freshness of scope with the cleaning power of crest. life opens up when you do. with the cleaning power of crest. could save you fifteen percent or more on car insurance. yep, everybody knows that. well, di

current environment, but it is absolutely worth watch to see if the mark has saved it over the high yielderss the bottom line. we have three sexy ipos coming over the next two weeks that are worth getting a piece of that i want you in. >> buy, buy, buy. >> retail me not, and get out once it starts trading. >> well, if you get in on the ipo they'll sell some shares on the first day and then sweeten if you let the rest fly. >>> coming up, supermarket, milk, cereal, let's see, how about adding some stock to your shopping list? grocery kingpin kroger just swallowed up a rival chain, but can this food phenom now go from stagnant to stealth mode? put some shares in your cart or leave it on the shelf? cramer decides. every day we're working to be an even better company - and to keep our commitments. and we've made a big commitment to america. bp supports nearly 250,000 jobs here. through all of our energy operations, we invest more in the u.s. than any other place in the world. in fact, we've invested over $55 billion here in the last five years - making bp america's largest energy investor. our co

mentality advisers i work with are telling me still you want to look to the growers, not necessary lit yielderst to sleep at night better be safe than sorry. >> where are you seeing the influence, steve? in terms of new money coming into the market. >> couple areas. one is fixed income hedging. not only that we have been talking to clients but but clients have come to us on. >> as well as hedge high yield. we have -- a lot of conversations and new high hedge yield product. that's the mine focus. but to heather's point, people are cautious. they want to commit more money. they want to do it in a more cautious fashion. >> doesn't feel so cautious today. >> it doesn't. but if you look at sectors outperforming and underperforming, there is still money flowing into the spaces. >> someone is pressing buttons. it is not me. i don't know who but someone is. short squeeze, as you say. >> yields, as we have been pointing out, last time we were at all-time highs was may. yields were high are than today. either we are becoming very comfortable at these levels or shorts are getting squeezed out. >> definite

we don't think it's the high yielders. we think it's the lower-paying -- dividend paying stocks that have shunned the record of paying dividends. >> rick, let me ask you whether the you think the big part of the summertime spike of interest rates is behind us? >> you know, i'm not sure that i can answer that with a yes. i would probably say no, but we have reverted into a summer range. but the range is definitely higher than the range we had prior to may 1st sell-off. you know, here we are in a very quiet treasury session, holding at 2.5% level. it wasn't that long ago that we were questioning whether we'd get above 2%. if you look at the euro and the dollar index, which are just mirror images of each other, we're hovering at four-week extremes. 4 1/2-week low on the dollar index, and as far as what traders on the floor that trade the s&p and the dow futures, they've been passing out estimates on earnings charts for the last couple of months. and i'll give you what they're looking at in a nutshell. apple. the whisper numbe

. >> two 8% yielders. one of the things we've seen yield hasn't protected you. will 8%?get front gate, back and forth with front gate, happened to love it, dennis gallagher, 8%. this is a return of capital situation canadian company. these are tougher. this is a company that we have to check the cash flow can cover the dividend. >> see you tonight. >> thank you. >> 6:00 and 11:00. the ceos of the huge merge enwean omnicom and publicis. ♪ ♪ ♪ ♪ [ male announcer ] if you can't stand the heat, get off the test track. get the mercedes-benz you've been burning for at the summer event, going on now at your authorized mercedes-benz dealer. but hurry, offers end july 31st. if then schwab is the placeing your trato trade. higher level, tdd#: 1-800-345-2550 going on now at your authorized mercedes-benz dealer. call 1-888-284-9410 or visit schwab.com/trading to tdd#: 1-800-345-2550 learn how you can earn up to 300 commission-free online trades tdd#: 1-800-345-2550 for six months with qualifying net deposits. tdd#: 1-800-345-2550 see how easy and intuitive it is to use tdd#: 1-800-3