The market is broken or bent. Give me a reason. That was intentional, wasnt it . Seema m owith the top stockso buy but first bob pisani. Last week you had your opportunity. And the markets have gotten considerably cheaper the multiple, forward multiple, price earnings multiple on the s p 500 has gone down considerably two weeks ago it was 18. 5. Thats historically high the 20year average is 16. At friday we were 16. 6, the lowest since the election. We crept up with the rally, 16. 9, but you get idea its getting cheaper now the big debate is with what weve seen here at the open today, are we at a tradeable low here can we anticipate the market wont have another big move to the downside weve had a big move down. Its the indices are way oversold so makes some sense you get it back. A little bounce. The correction is only six days old. Some people calling it a technical correction, not based on fundamentals. Others dramatically disagree with that idea look whats happened the dow has regained almost half of all these losses weve had. 1200 points weve moved up since 2 00 on friday afternoon some people are just saying today, guys, this is just too far, too fast. The important thing is, there are a lot of people who bought in thinking its tradeable but theyre week longs they dont have a lot of conviction overall some argue well have a retest of the lows maybe next week, maybe in a few weeks who knows. All i can tell you is, theres an old saying, in great markets you cant get in bad markets you cant get out. Weve gone all the way around both of those in two trading sessions i call it the hyper markets. Back to you. Learning the value of those old idioms again here lately im sorry if i dont understand where this is coming from i thought we were fine that we had everything that pink song theres people who probably feel that way after they said, you know, we were finally bullish on this market and now just give me a reason whats going on . We were fine. We absolutely were fine. I think its a question of exactly how we priced all the good stuff in january. And it was basically that you sort of had all the great makings of a great economy a, accelerated earnings people got too bullish also we had very loose financial conditions to go with it that was the enabler thats where were questioning what rates mean. I think even before todays recovery, which is kind of funny. The markets calmed down today. The dow is 10 a gentle move. Feels that way. To your point, the volatility gauge, were still up at 25. Were not back to 9. It doesnt feel the vital signs are not quite back to normal i would say even before today, though, the character of this pullback puts you in that camp that said, its more likely a correction more than a bear market why . A sudden, 10 drop the fastest 10 drop from an alltime high in 80 years. Any time we have a market fact like that, you have to respect it. Without a doubt. Weve gone through so many ups and downs. You have to pay attention. The fact it was sharp from an alltime high when the rally was broad and it was clear skies above, thats not how bear markets tend to start. Usually the market gets tired, leadership narrows, volatility kind of perks up a little bit. This seems much more like a gut check after an unusually and calm rally we had last year. You can look at examples in the past it doesnt mean racing back up to the highs but it does mean other markets did not tell you this was a massive economic problem being sniffed out by stocks i think you have to inspect the dynamics of every rally, every rebound. See if there are better technicals on the rebound and if you have better money flowing back in. I feel like late january, my oneline explanation of what happened stocks were expensive and people owned enough of them thats really all it was then we had this kind of gut check. See if we can learn to love again. Im not going to stop because i love that song. Ill try to keep up. Well see you at the close. Thanks. Despite the rally today, there are a lot of stocks trading far below their recent highs. A number of wall street firms are pointing out names to buy on the dips seema modi has a look at those. Whats interesting is Portfolio Managers are deploying different strategies on which stocks are better to buy david kosten says higher Interest Rates should benefit stocks in cyclical sec stores with lower labor costs two of which are in the financial space. Prudential, citigroup, alphabet as a name that is insulated from inflationary fears, which he says will persist in 2018. Valuations are compelling with average price to earnings ratio with firms with lower labor costs at 13 times versus the markets pe of 17. Sam stovall is picking stocks with energy, utilitieses, which were the biggest losers in last weeks selloff and, therefore, may have the most to gain in this stock market bounce within the Semiconductor Equipment sector, which lost nearly 20 last week, he likes lam research followed by metlife in the Health Insurance space and exxonmobil in energy with that said, no one can unequivocally say the bottom has been put in, but these are some of the trades strategists are recommending kelly . Seema, thank you. Seema modi joining me is david, chief strategist at jeffries welcome. You have some tough talking here you say this is handsome dividends for the haters, all this volatility and the selloff last week. Is that how you see this playing out here as we enter year nine, almost ten of the bull market . Weve had so many of these corrections over the last nine years. A lot of times i find myself fighting with the same group of people who have been telling you qe doesnt work, inflation is around the corner and its going to come to an ugly end it feels like another time where we got a little inflation uptick with the wage data and the payroll numbers. We have fiscal stimulus thats getting everybody a little antsy in terms of are we stimulating at the wrong time in the cycle rates are at 4. 1 most importantly, we have a new fed chair we dont know a lot about. I think thats the kicker, is were trying to figure out who jay powell is, what hes made of and the market is kind of pushing him a little bit theyll learn a lot on the 28th when he has his testimony. Well learn a lot about the market and how they feel with inflation with the ppi and cpi reports. There hasnt been that much excitement about those reports when talking about this kind of change of mind hes had about the nature of the rally. Cited the same two things, inflation, the size of the deficits, is the reason he doesnt think the market will have that kind of final meltup phase, for lack of a better term so, why do you feel differently . Look, im never going to say i cant be wrong i can be absolutely wrong. Ray is a hard guy to go against. Hes been right for a long period of time at the end of the day, there are too many disinflationary forces. We have secular ones from the technological advance thats going on every day out of Silicon Valley and everywhere else we have demographics that weigh on inflation weve got a fed thats tightening thats disinflationary we have deregulation, which supports more competition, which is deflationary or disinflationary. I think Corporate Tax reform is disinflationary because consumers can feel some of that benefit through lower prices now we have a lot of debt and even more debt well have deficit spending and what debt does when you have 320 total to gdp is it weighs down on peoples desire to spend. Because they worry about how the debt will get back. Wait a minute. Thats controversial. Hang on youre telling me im sitting at home thats the last structural piece. Im going to spend less im not saying people arent worried about Government Spending but you think theyll directly change their own spending as a result well, let me just give you one example. The country that has the most government debt, where the people are the most indebted, where its 250 of gdp and every man, woman and child is on the hook for over 100,000 in current dollar terms is japan. Do we see an invigorated consumer in japan . Do we see someone thats excited about going out and spending theyve been trying to deal with this for a long time and theyve run into trouble im not saying we are japan but we should look at their example always and think about what excessive levels of debt mean for the spending patterns of consumers. And i think theres some worry about that thats the sixth one i gave you five more before that so you can throw that one out if you dont like it, on k . Well, just to be clear. What youre saying is that unlike some who think were at an inflexion point, so that takes us to what we might hear from the fed chair what do you think how hell explain how hes evaluating the same dynamics . I think we need to hear about gradualism, the target is symmetric. See if we get some late cycle push something comforting to the market that this isnt a new regime where all of a sudden inflation bugaboos are going to play a role in fed policy and theyre going to be preemptive. I think the market is concerned because they dont know a lot about what jay powells Monetary Policy views are. You want him to be like janet. Thats because it would be good for the market what if we fast forward five or ten years and this is an asset bubble you dont want that. Wouldnt it behoove the fed to do something, even if they share your optimism . One is stopping bubbles and one is fighting inflation. I dont think theyre the same i think the fighting inflation story has a lot of difficulty in terms of being justified at this stage. The bubble thing, ive been resigned to the fact that thats what we do in capitalism we have bubbles. We get them they go up a lot, they pop eventually. The fed cleans up the mess but its really not the feds responsibility to lean against bubbles. Its sort of hand it off to the markets, let them do their thing and ultimately let them come in and clean them up. Thats how we managed this for the last 25 or 30 years. You know what no, i weve had rocky times but pretty good times, too. I think youre right. But im not sure whether thats a good thing maybe that should be something to weigh in as well, what they view themselves in those bubbles. Janet was pretty good about saying im sorry, say that again . Wouldnt be the first time the fed was pressed hard on this no. I think janet was pred good about saying, its not our job to pick bubbles. She said something about commercial real estate just to give a little nod to it, but she was not one of these diehard Financial Stability types like youve seen in some parts of the Federal Reserve bank system. Not too many of the governors that really pushes back on it. So, i do think your statement before was correct i think were trying to look and see how similar is jay to janet. How similar is he to ben how is he thinking of reacting to these sorts of market pullbacks . Do we have a kind of backstop of some sort, somewhere, that we can lean on and where is it . I think thats what the markets searching for. David zervos, always a pleasure. Great to see you, kelly. Thank you for more on the top stocks from goldman and cfra, which you heard seema talking about, go to closingbell. Cnbc. Com and the full list is online. A little more than 45 minutes to go. Dow is hanging onto a 100point gain up nearly 2 , a little more than that a lot more ahead still on the k closing bel closing bell. Announcer next up, goldman internet analyst plus, what the chartwatchers see after fridays late move up and todays big jump and were counting you down to curling at 5 00 p. M. This is the closing bell. Home of olympic curling onnb cc. Its all yours. Wow record time. At cognizant, were helping todays leading Life Sciences companies go beyond developing prescriptions to offering subscriptions with personalized, realtime advice for lifelong, healthy living. Honey . You almost done . Nope. Get ready, because were helping leading companies see it and see it throughwith digital. When this bell rings. It starts a chain reaction. Thats heard throughout the connected business world. At t Network Security helps protect business, from the largest Financial Markets to the smallest transactions, by sensing cyberattacks in near real time and automatically deploying countermeasures. Keeping the world of business connected and protected. Thats the power of and. Welcome back as we keep trying to piece together a rebound on wall street, the dow is near session highs. Up 531 still below 25,000 thats where we started the year the s p is up 48 today nasdaq up 138. The russell is up 19 apple is the best performer in the dow today. In its latesest forecast, eforecaster estimates facebook will lose 2 million users under the age of 25 today. While competitor snapchat will be adding more in that age Goldman Sachs heath terry joins us as goldman kicks off its annual tech conference in san francisco. Thank you for joining us thanks for having me. Lets just start with snapchat of course, theres a lot of excitement about its latest trends how much room do you think it has to grow here is it coming at facebooks expense . I think theres a lot of room to grow in terms of the size of their user base. Theyre one of the smaller platforms out there, particularly among the public platforms. We think the messaging functionality of the platform has incredibly wide applications and we think the effort that content producers have in terms of using snap to deliver content has a lot of room to go. So, you know, given the size of the social Media Audience out there and where snaps starting from we think theres a lot of runway. Is it going to remain niche the shares are under 19 bucks. Where do you see that valuation going . Weve got about a 26 target on snap. Its largely based on the value of that of the platform you look at the scarcity here. Its not like there are a lot of scaled social Media Companies out there. You have facebook. You have twitter you have snap in the u. S and in western markets and thats it. That kind of scarcity value is why you see investments like the one ten cent made into snap happen its why advertisers are, in a lot of cases, scrambling to find inventory and look for places to put incremental spend, particularly as their share of spend in more traditional channels has to come down. As viewership and readership comes down a lot comes from the value of that platform overall. You cant justify it on existing financials but we think you will be able to over ime. Do you also think snap and twitter, which was up huge after its earnings, are going to benefit from today we have unilever saying theyre going to pull their ads from facebook and google if they, quote, fail to protect children and increase transparency do these corporate advertisers have to make happy talk to look like theyre doing something or is this a real threat for facebook and google . I think its a point of leverage for them. Youre talking about huge platforms in facebook and google that, you know, have really for the last few years had the leverage over advertisers. 93 of every incremental advertising dollar last year ended up on facebook or google this is one way for advertisers to claim some of that leverage back not to say theyre not serious about protecting children or making sure their advertisements arent near hate speech but this is largely making sure they get better economics. Finally, and this is separate, but i guess what happens affects the stocks you cover, the New York Times did have a pretty good report last week the digital subs for the wall street journal continue to increase can those traditional news platforms actually also make some inroads against competitors they say are eating their lunch . I think its always about content. You look at the success that snap and facebook and youtube have had you look at the success that some of these more traditional advertising platforms, whether its print media or Digital Media have had ultimately, if you have the content, the advertisers will find you and the users will find you. Heath, thanks for joining us. Thats heath terry from Goldman Sachs. 40 minutes to go to the close. Dow is at session highs. Were at 546 a volatile last hour speaking of volatile, the vix today is just below 25 right now. Its still elevated but you see green across the screens the russell up a little less than that. Still ahead, the tenyear u. S. Treasury yield touched its highest level in four years today. Well tell you what that could mean for stocks and for housing going forward. Later, goldman pointing to an International Market as a safe place to hide out amid this volatility well tell you which one that is when the closing bell returns. Each day our planet awakens with signs of opportunity. But with opportunity comes risk. And to manage this risk, the world turns to cme group. We help farmers lock in future prices, banks manage Interest Rate changes and airlines hedge fuel costs. All so they can manage their risks and move forward. Its simply a matter of following the signs. They all lead here. Cme group how the world advances. Today, innovation in the finger lakes is helping build the new new york. Once home to the worlds image center, new york state is now a leader in optics, photonics and imaging. Fueled by strong university partnerships, providing the worlds best talent. And supported with Workforce Development to create even more opportunities. All across new york state, were building the new new york. To grow your business with us in new york state, visit esd. Ny. Gov. Now the dow is up about 565 points by the way, since from its intraday lows, we are up about 5 for the averages. Here are a look at some sectors. Amid all of this today, materials up 2. 6 . We got that infrastructure bill unveiled by the president earlier this year. Technology up 2. 4 apple is up 4 and leading the dow today. Energy up better than 2 were seeing a rebound there with the levels of wti still below 60 a barrel suffering are stell will he com, utilities and real estate, at everybody is in the green right now. Heres a check on some of todays market movers. Cisco is higher and raising target from 46 a share to 43 the stock is up a little more than 3 . And Tech Solutions company csra is soaring on news its being bought by General Dynamics worth 6 billion, with 3 million in assumed debt, its expected to close at the beginning of the year and csra up by 31 today. 35 minutes to go dow up 555 points. Well talk about Energy Stocks they were down 12 over the past month but its gaining back some serious ground today up 2. 3 . Well tell you what exactly is behind this move higher. Later, bridgewaters ray dalio said last month, if youre holding cash, youll feel pretty stupid but now hes changing his tune in light of the selloff and changing Market Conditions well tell you what he said. Stick around, the closing bell is back in two [fbi agent] youre a brave man, mr. Stevens. Your testimony will save lives. Mr. Stevens . This is your new name. This is your new house. And a perfectly inconspicuous suv. You must become invisible. [hero] ill take my chances. Welcome back as the rebound continues from the lows we hit friday afternoon. The dow is up 523 points right now. Here are all 30 components theres only one in the red right now and its ge, which is down about a third of 1 leading the way, apple is up 4 right now, helping to regain a lot of the 10 or so it lost in the selloff. Boeing up and sort of reasserting its leadership today. American express, dow, dupont some of the best performers, but a lot of big movers in the blue chips. Its time for a cnbc news update lets get to sue herera. Hi, everyone. President trump meeting with governors, mayors and cabinet officials at the white house just hours after his Administration Detailed a plan to spur 1. 5 trillion in Infrastructure Spending over ten years. Actually, to me this is a very, very sexy subject. The media doesnt find it sexy i find it sexy because i was always a builder i knew how to build on time, on budget thats what we want here. Russia successfully launching a new antiaircraft missile. It released video of that launch saying it was a new modernized missile of the antiaircraft Defense System no other details were provided. And husqvarna recalling more than 7,000 riding lawn mowers over a fire hazard the Consumer ProductSafety Commission saying incorrect routing of a fuel line can cause wear and leaking posting a potential fire hazard. You are up to date thats the news update this hour back downtown to you thats a mouthful husqvarna. Husqvarna. A good scrabble word. A lot of points. Sounds like a cheese. Husqvarna. That, too thank you, sue. You got it. Well see you later lets get a check on some names seeing the biggest pop from fridays lows the low a little before 2 00 p. M. Friday afternoon. Seema modi has more. Were dissecting every part of this market comeback with the dow up over 530 points heres a look at the stocks driving the dow higher apple. Boeing making up 180 points, American Express and intel up 7 from the lows we hit on friday all of which were caught up in last weeks selloff. Are now leading the dow higher keep in mind with todays gains, the dow is up 6 from its recent low. Well keep an eye on the market. Back to you. 6 in basically one trading session. I mean, were talking about incredible. Yeah. Thank you, seema seema modi and that explains why the volatility gauge high. Yields on the tenyear moved higher, over 2. 9 . Right now were at 2. 6 . Steve the leasem Steve Liesman joins us. The question of the high rates, are they the cause of whats happening with stocks what happens when rates surge . We went back and looked at six periods of major rate increases in the tenyear treasury going back to 93, you can see all but one. The s p is up. Up at least dusouble digits and sometimes two percentage points, sometimes three that they end up being very healthy for stocks. What about the next six months you can see that then it gets a little more dicey. Sometimes its negative, sometimes almost always Single Digits the next six months of a time of rising rates tends to be more challenging. The whole context of this study here, that takes place in the context of lower rates if you could just zoom in on the very end, you can see the rate rise weve had of late has been healthy. About 149, 150 basis points. Its right up there with some of these other historical events we looked at. One thing we know this happens in general during a period of rising gdp growth. Those times of rising Interest Rates. Interestingly, it happens at a time mostly when inflation is falling. You know, thats been the case over the past several years. Theres the total average. Up 211 basis points on average and the s p 500 during a time of rising yields, up 26 . Six months later, right around the mid to Single Digits, kelly. Steve, thank you. Well, stick around as we get to closing bell exchange. Were joined by etftrends. Com ceo and editor and Rick Santelli checks in from the cme in chicago thanks to all of you for being here kenny, what steve has laid out would make it sound like theres nothing to be afraid of, higher rates, unless this is a ray dalio quote from his post today. Were past the top of the bond market does that make this time different . Heres what happens i think the market is used to rising rates and the market was okay with it. We kept moving higher, moving higher whatever last week all of a sudden ignited that volatility trade and created the disaster that we saw over a couple of days, created massive dislocations in stocks i think the market is okay with rising rates its pointing to a healthier u. S. Economy therefore, i dont think the markets going to react so, so negatively when we see rates go up i think it will be a little headwind i think you might see the market back off you might count today as a dead cat bounce because it bounced a lot. After the technicals last week, the market still needs to thrash around just to find its chi, right . People werent expressing a lot of optimism. Etfs had their biggest 60day outflow ever so, for bulls that would be a good sign but it sounds like people were jumping ship what do you make of it zoom y you are records last year of 360 billion last month in january, 78 billion. There made be 25 billion that came out in the last week. Kind of a blip on the radar. Not really that much i mean, we saw etfs do exactly what they were supposed to do. No halts on exchanges. Real tight trading even all the inverse in leverage etfs where people maybe try to throw stones at them, again, they did exactly what they were supposed to do a little pullback. I believe, kenny, the fundamentals are there. Tom, i was just going to say, the case of these inverse products, you know, maybe they did exactly what they were supposed to do but it was a rude wakeup call for people invested what about this debate back and forth, should products like that be banned . Should they have better disclosures about, yeah, the most likely longterm outcome is sfl zero is that aid problem for you . 276 inverse leverage etfs out there. Most are equity based or fixed income based they did what they are supposed to do. The the few volatility etfs, the last hour of trading where 1 billion came into the futures market and had to be settled within 4 00 and 4 15, where it exasperated a problem. Thats really where we really need to focus just on these volatility etfs where you lost about 95 , if, in fact, you bet volatility was going to come back to earth and decline. And you were right unfortunately, the tool didnt do what you hoped it would do. The other thing i want to get rick in, but, kenny, if somebody who said, i bet volatility is going to drop, i mean, these products will go away thats kind of the irony of this whole thing. Now theyre anyway, we wont go there rick, let me ask you whats going on with rates. 2. 9 , how significant was that today . You know, its crawling up towards and will ultimately, in my opinion, test 3 . I dont look at it as this big fear factor. As far as history, i enjoyed steves piece. But i think all the other comps have a much different trigger for why the fed started moving from easing to tightening. That didnt include a balance sheet. All the symptoms and cautionst causations and causalialities of what this market might do, this is a firstoff reduced Balance Sheets basically starting this year, all the ownership they have, 16 trillion in Central Bank Holdings in the space, its going to make trying to understand how this turns out fairly complex i dont think the Central Banks have any idea. One thing i do understand is that in the end, you know, look at tbills we had a lot more supply in bills. We had Cash Management bills announc announced. But lets look at one bill in particular you have a sixmonth bill now thats trading under 180 we have the twoyear note yield at 208 that bill is up 26 basis points on the year. The twoyear is up 20 basis points a, its going to offer other investment strategies. B, to me, the rise in rates is mostly been triggered by one wage year over year, 2. 9 number and i personally think were not at full employment i think the full employment argue falls flat let me finish. Falls flat when you have 95 million workers that will probably get drawn back in the workforce. Your turn now. I dont disagree with you much on the inflation outlook. Im benign when i look at the outlook there. But i think there are questions to be answered one thing thats not noticed is the ty vix, the treasury vix, thats been volatile thats come back as well i think there are major questions to answer. And i think when the treasury market gets such as when the treasury market gets surprised its not surprised. Everybody makes a big deal about let me its just options thats all it is my point is theres 1. 2 trillion of additional supply to place. I have no doubt the u. S. Government will place that supply we dont know at what price. What is the yield going to be . Quhaefr that yield is, what are people going to think about stocks relative to that. I tonight think the volatility dish. Thats not necessarily an inflation argument. No, its a supply argument. Close to 600 billion its supply. The supply youre talking about is tbills. Its tbills. Its not going to remain tbills. At some point of time theyll want to change that structure. What happens is you have to find the strong hands for stocks in an environment of higher rates kenny, last word. But, to your point, extra supply, too much supply is going to put pressure on price causing yields to go higher. I think thats kind of the uncertainty, at least some of the angst created last week. Appreciate you joining us Steve Liesman, kenny, rick san ste santelli. 20 minutes to go dow up 465, which last year would have been remarkable this year were still trying to make up those big declines we saw last week. The s p up 41. Nasdaq up 121. Russell up 16. Up next, were going to the telestrator. Thats what we call it were going to take a look at some technicals behind todays huge market rally. Also we have Mortgage Rates on the rise that is starting to have an impact on the Housing Market well talk about what thatea mns for buyers and for sellers coming up. Lets build a better world for investing. Lets create jobs, build bridges, insure prosperity. As Investment Management professionals, lets measure up. Cfa institute. sighs i hate missing out missing out after hours. Not anymore, Td Ameritrade lets you trade select securities 24 hours a day, five days a week. Thats amazing. Its a pretty big deal. So i can trade all night long . All night long. Is that Lionel Richie . Lets reopen the market. Mr. Richie, would you ring the 24 5 bell . Sure can, jim. Trade 24 5, only with Td Ameritrade. When this bell rings. It starts a chain reaction. Thats heard throughout the connected business world. At t Network Security helps protect business, from the largest Financial Markets to the smallest transactions, by sensing cyberattacks in near real time and automatically deploying countermeasures. Keeping the world of business connected and protected. Thats the power of and. Yourbut as you get older,thing. It naturally begins to change, causing a lack of sharpness, or even trouble with recall. Thankfully, the breakthrough in prevagen helps your brain and actually improves memory. The secret is an ingredient originally discovered. In jellyfish. In clinical trials, prevagen has been shown to improve shortterm memory. Prevagen. The name to remember. Thwho hold themselveshe to a higher standard. They are called cfa charterholders. Demand the best. Demand a cfa charterholder. Cfa institute. Welcome back the three major averages are bouncing back today after last weeks volatile trading. Joining me to discuss the moves hes seen in the market, jeff degrade de graaf. Friday was a big day. You made a 65day low. That sets off a lot of ctas, commodity trade advisers to sell long positions or go short once you did that, youre within 20 points of the 200day moving average. Those two things happening pushing that through. 65 days in the purple and intraday in the white and they cross. Exactly once the market got through that, its easy to set off a lot of stops a normal place they would stop once we got through that, it cleared the decks. You didnt have any further selling. You didnt have the impact of the bond market or the european indices after 2 00 and it gave us room to run were getting followthrough from that. We dont have a trend yet thats especially low we would like to see it below 2. 5. All the sectors are up thats good news we rallied to the 50day you want to see it below 0. 5 is what . Means buyers are basically panicking. That sounds like a bad thing but its a good thing. Just the opposite. We saw sellers panicking this time last week we want to see this surge of buying we call it buying thrust below 0. 5 is it. Last time it was 0. 65. Its not good enough you want to see it below 0. 5. What else we had a volatility differential if you look at the difference between volatility of near month which is march and june, the spread was so wide if you look at it historically, you see other points in time where this has happened. Generally its a panic in the market where people are pricing frontsmonth vol very high not as concerned about backmonth vol its a mismatch sometimes people talk about this as the inverted vix curve. Yes its a nice thing which we see things lining up you like this weal like it. All that panic is being priced in for the near future, but not far out . Yes you get the high trend reading, the vol inversion, all those things are good news for the market in the very short term. And finally, what doesnt tend to happen is you dont tend to have a major market peak when you have the percentage of issues with the 20day moving average above the excuse me, the 65day moving average. Its right now at 76 . Thats a very high amount. The percentage of the s p 500 names. Names with the 20day higher than the 65day moving average. Intermediate up uptrend we get concerned when youre in a situation like this and the market tops out. Youll see internal weakness develop before the market turns. Im not in the camp that that was a big top. Youre looking more here and you want to see this higher like that its fine like it is. Id be concerned if that is high, that means selectivity is coming in the market, thats divergence and sets up for a bigger your takeaway as we head to the close is i think were in good shape, at least temporarily we go to the 50day moving average. We have a retest and i put that out three weeks or so and i think youre setting the stage for another new high in the market. I could never make it as a technician its not in my blood thank you so much. Im glad you do what you do. Ill come back and do that for you. Please. From Renaissance Macro dow is hanging onto a big gain but not at the highs were up 372 right now weve come off that 550 gain. Next up, well talk about opportunities overseas the u. S. Market coming back after last weeks selloff. Well look at stock sales around the world. Also, the president s plan to rebuild this countrys infrastructure how can you play it . What are the stocks doing . The closing bell is back in two . Lets begin. Yes or no . Do you want the same tools and seamless experience across web and tablet . Do you want 4. 95 commissions for stocks, 0. 50 options contracts . 1. 50 futures contracts . What about a dedicated service team of trading specialists . Did you say yes . Good, then its time for power e trade. The platform, price and service that gives you the edge you need. Looks like we have a couple seconds left. Lets do some card twirling twirling cards e trade. The original place to invest online. Swho live within five miles of custyour business . 54, like these two. And that guy. Or maybe you want to reach women, ages 18 to 34, who are interested in fitness. Namaste. Whichever audience youre looking for, well find them were the finders. We work here at comcast spotlight, and we have the best tools for getting your advertising message out there. Anywhere, any way your audience watches. Consider them found. Welcome back as we head into the close. Ten minutes to go. Dow it back up about 400 points. Session high is about 550. The s p up 34. Nasdaq up 100. Russell up 11. Apple, boeing, those are some of the strongest performers in the blue chips today were also watching international stocks, which are getting some interest once again. Goldman in a note calling for investors to look at emerging markets. Seema modi is following that. What makes this Global Equity pullback last week notable is it was sparked by concerns in the United States around inflation versus inflation in china. Thats why goldman is citing the uptick and analysts say the fact these markets, which tend to be hypersensitive to a global selloff are still up on the year and are faring better than the s p 500, is significant, to say the least. The question is whether the emerging market rally can continue given the massive 34 run we saw last year traders will actually be looking to the bond market for direction. If yields creep higher, that could make it a less appealing destination. Wti went back above 60 this morning, but where do we stand now . Hey, kelly, today Oil Turned Around right alongside the stock Market Investors taking a pause and wondering if some of the volatility weve seen isnt overdone at session high oil was closer to 61 a barrel. Now, with the boost in oil prices, energy was also one of the better performing s p sectors today. Take a look at big oil exxon, chevron, conoco, hess, higher today but lower on the week and lower on the month. More news on the fundamentals came out, however its a little bearish. Opecs january report it sees nonopec supply going up, thats u. S. Shell producers, and also reported opec production was over 32 Million Barrels a day. There was a slight drop monthonmonth but they started cutting at these inflated levels so, where do we go from here 60 is the new midpoint of the range, plus or minus 5 its less about supply and demand right now its really about the stock market jackie, thank you stocks are headed higher dow up 456 the closing countdown is next. After the bell, Mortgage Rates hit their highest level in four years. Youll have some answers on what that means for the home builders, for the spring xtn e longelson, for your house ne othcsi bl. Feel that . Thats the beat of Global Markets, the rhythm of the world. But to us, its the pace of tomorrow. With ingenuity, technologies, and markets expertise we create the possible. And when you do that, you dont chase the pace of tomorrow. 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A leap into the digital era draws youthful populations to mobile banking and ecommerce. Trade and travel surge between emerging markets. Everyday our 1,100 investment professionals around the world search out opportunities for alpha. Partner with pgim, the global Investment Management businesses of prudential. Yes or no . Gin. Do you want the same tools and seamless experience across web and tablet . Do you want 4. 95 commissions for stocks, 0. 50 options contracts . 1. 50 futures contracts . What about a dedicated service team of trading specialists . Did you say yes . Good, then its time for power e trade. The platform, price and service that gives you the edge you need. Looks like we have a couple seconds left. Lets do some card twirling twirling cards e trade. The original place to invest online. Four minutes to closing bell the dow up 440 points. Follow through from the upside to fridays afternoon recovery in the market giving some credence to the idea there might have been a trading low set on friday afternoon and perhaps overnight into tuesday we are a little off the highs of the day. The dow is up as much as 548 the s p 500 was up about 2 at the highs. Its slightly down from there. We had a little backoff around 10 30, the market was flat basically a lot of things are lining up that those who wanted to see the market to continue to take a stand dow transports are up today. They were conspicuously weak on friday treasury yields were calm. The vix, the volatility index, has been a little sticky to the upside it hasnt really collapsed but it is now down three points on the day, well off the highs of 50 last week bob pisani here on the floor to bring in the close bob, where do we sit the important thing is, i call it the hypermarket. We traveled a whole lifetime since 2 00 on friday after, we were down we were 1200 points lower and weve traveled 1200 points the big issue is, why is this happening . I think the clear feeling is, there is still an underlying tone of bullishness to the market traders have seen this and they said, i still want to get in somehow. A trader friend said, good markets you cant get in, bad markets you cant get out. I cant get on friday morning, i cant get in on monday morning so, traders are saying, im not going to sit in cash because the market is going up and i need to find a way to get back in. Thats a fundamentally bullish sentiment. A bull market that strong in comp wasnt going to go easily, right, with just a twoweek selloff of 10 i guess its worth perspective a little bit here in terms of where we sit with the gains from friday, we regained about more than a third, maybe 40 of the twoweek downside in the s p 500. If you look at that chart, its a dramatic comeback but you still have a lot of head room up there. Thats why you have all these questions about, well, do we have to now trap around in a range, do we have to even retest the lows the problem i have with a lot of the analysis, some people say it was technically driven. That is it was driven by programs, concerns about short volatility trade thats certainly true but there is something very fundamental about what happened. The big decline was on friday when the jobs report came out. That was on concerns about wage growth and inflation thats not technical thats a very fundamental concern that people have about rising rates thats why i think the big event this week will be the cpi on wednesday, ppi as well will be coming and that is going to create, i think, some tradeable opportunities one way or another. I think the fundamentals matter. I think there is slightly higher inflation risk weve had before. Slightly higher political risk, too, because that overall budget thats being passed has got significant amounts of additional deficit spending in it not only on defense spending but on domestic spending as well thats the new story line, right . Exactly, what are the effects of throwing a lot of stimulus at a full employment economy with stocks already at a pretty good high so, the idea be iin 424 up on the dow. Youre holding most of the gains for the day. The volume is average today what that means with big points move up, that means sellers are sitting there saying, im not very inclined to sell anything and the price has to rise to attract them and and comparatively calm day. Well see how it goes tomorrow ringing the bell today at the big board, quinton second hour of closing bell with kelly thank you. Welcome to the closing bell. Im kelly evans. The dow closing higher, over 400 points that puts us about 5 higher from the lows we saw intraday on friday a 1. 7 gain for the blue chips today. Theres still about 400 points shy of the 25,000 mark the s p 500 itself adding 36 points to 2655 today the nasdaq composite, the best performer second best, up 1. 5 the russell 2000s in the caboose position up 0. 9 today, 1490 the strongest twoday advance for the dow since august of 2015 thats even with the tenyear yield hitting 2. 9 earlier today. Joining me to talk all about this, cnbc senior markets commentator Michael Santoli along with cnbc contributor Michael Berman where do we say youre from . Cnbc. We can talk about that later. Im impressed youre coming on tv. You know im going to ask you. I love you guys so much. Are you going to be a banker . Thats correct. You and faber is going to talk to you i dont talk about sourcing thats a good policy going forward, kelly lets just talk about the markets. Congratulations thank you but, i think youre going to the dark i dont know. Is this the dark side . No, congratulations. Well get more into this later on jim lacamp is here Wealth Management from ubs. Any job changes to announce, jim, while youre here not that im aware of im not doing it on a selfinflicted basis maybe he has something to say about that i dont know. Well see after our chat today. No topping the dow, lets talk about these markets and what a rebound we have seen American Express was up there, apple was also having a strong day, boeing, amex up more than 3 , and ge was the only laggard in the dow and it dropped a little less than 1 . Over on the s p 500, csra, an i. T. Solutions company, up 31 after its being bought. Ulta down 0. 8 is this real or a head fake . Its not a head fake. Its for real that we got so overstretched to the downside in a short period of time, you were at a critical point, last tuesday, last friday, where fires didnt show up all of a sudden the whole trend becomes a little suspect it took a stand where it had to. I do think its legitimate i think a lot of folks looked at that more than 10 in eight or nine days and said, what is actually changed are the credit markets giving me a scary story about whats going to happen . Are currency markets leading indicators of all source, didnt tell you that much changed i think its a defying instinct right now. I think we could be in a transition to a different type of market. I think that the very high gain of unit per pain ratio for 14 months ending in january 2014 is going to be seen as the greatest days of this stretch that doesnt mean its down from here i think its okay. Do you agree on that . More or less. I think it was a great golden era. Im trying to figure out this riddle of volatility when i come back to it, the market is repricing all these assets of course, it goes back to Interest Rates of course it goes back to the fed, chairman powell its very interesting to me how little has been talked about him specifically and. The fact this happened on his first days in the job, do you think he has something to do with it or is it just happenstance is it not a fed with a somewhat different outlook on the fed than the yellen fed . Yes, it is what that means, i think its hard to say. Were in a moment of repricing everything it goes back to Interest Rates goes back to inflation these are really important times because inflation is going up without true Economic Growth and productivity the stock market is going to respond accordingly. I will say, i dont know if the market is explicitly deciding, so to speak, to test chairman powell but it came in a week during an exit interview janet yellen said, we dont worry about the stock market going down it doesnt affect economy. Another regional fed president said the same thing. I dont think that was a calculated message but when the market is skittish, it finds a reason to stay skittish. The fact they didnt come out and say, were monitoring conditions closely there were no remarks like that. I think there should be a cnbc onehour special, who is jerry powell, what does he want . Thats a key question people arent asking. Jim, what can you tell us about the role the new fed chair is playing in all this and whether you think the market is changing character the fed, the chief concern of every strategist on wall street. Certainly its the fed and the inflation weve seen in various areas of the market of the economy, at i dont think its really big im looking at a few things here they mentioned the volatility. The volatility index it really spiked last week if you look at the history of those kind of spikes, we saw one in 15, in 11, in 08 the market 84 of the time has rallied after these kind of spikes with an average gain of 22 . 10 correction in a bull market. Within the context of a bull market, and i would argue were still in a bull market after a 10 correction, the next 12 months has averaged 19 gains from that spot so, i think were in a bull market because were not seeing the high yield spreads blow out. Were not seeing an inverted yield curve. Global purchasing managers indices have been strong our own has been strong. The economy is on solid foot its a bull market its a correction in a bull market after a 10 correction, weve seen stellar gains historically. So, i think we look pretty good with the caveat that if the fed gets too agregressive, it could change things. Where do you think Interest Rates are going, all that said, or does it matter . Well, certainly i think it matters because Market Participants are going to play close attention. We could touch 3 on the tenyear treasury. Bear in mind where were coming from were coming from zero percent Interest Rates, from historically low artificial Interest Rates and Market Participants have been arguing the normalized rates for a long time now that its happening, its the end of the world as we know it aid new dynamic is taking place but we think its accompanied by Global Growth to an extent where its not going to upset the markets. As i mentioned, we had over 2. 9 on the tenyear its about 2. 85 now amid all this volatility, one of the biggest names in the Hedge Fund Industry has more. We want to first bring you back to the end of january it seems like forever go gwynn the recent turbulence. It was at that time ray dalio, who sits atop the largest hedge fund, bridgewater, he made a comment in cnbc urging investors to put excess cash to work in the markets. So, were going to be, i think, inundated with cash i think thats going to produce a lot of stimulation and, i think, perhaps a market blowoff. Were in a situation where youre holding cash, youll feel pretty stupid. As we now know within ten days the Market Dynamic turned with all the major indices in the red for february and huge swings to the up and downside since then. So, suddenly bridgewaters tone became a lot more bearish. Over the weekend bridgewaters cocia bob prince gave an interview to the Financial Times urging a more cautious tone he said, quote, there had been some complacency built up in the markets over a long thyme so we dont think this shakeout will be over in a matter of days. Then this morning ray dalio wrote in a post on linkedin that recent spurts in stimulation, growth and wage numbers signals that the cycle was a bit ahead of where i thought it was ten days ago he adds the ability of Central Banks to get Monetary Policy right in this point in the cycle is difficult and that as a result, the odds of a recession in the next 18 to 24 months are rising kelly . Leslie, stay with us. I wonder if after this he goes, im not giving any more media interviews for five years. Hes been so out there lately between the book and Everything Else maybe its doing more harm than good. I dont know hes helping that much. I think its good to run that full clip of what he said there. I think he was making an observation of the kind of market we were in and he thought we would stay in for a little while. He wasnt saying, everybody out there who im talking to right now, youll feel stupid if you dont put cash to work he says, were in an environment where everyone feels like they have to chase this i was writing two weengz about the meltup. I think thats where it was. Yes, if you feel forced now to kind of double back on what you were saying and explain it away, i dont know if thats helpful. My point is he could have gone one of two ways on this and you kind of said this. Just because were not in the just because we had this correction doesnt mean we wont see a rally reassert itself. In fairness, its like Charlie Munger would say, when the facts change, you can change your mind we got the 2. 9 wage number, the g government deficit figures and i changed my mind. Ill put this question to you and mike what are the positive upside surprises in the markets today we know as tax reform is coming along, people were doing their math on corporate earnings you know what, those were pretty incredible changes in terms of tax rates for companies in the United States. That really makes a big difference to the bottom line. Outside of true productivity growth and productivity numbers have been poor the last few quarters, inflation not great. What are the upside surprises . I know mikes got a good answer to that. What are the upside to that we might see . I would say there are more downside surprises. In terms of the macro data, sure honestly, i think everyones getting ahead of themselves thinking rates are up, up and away from here in the short term and i think treasuries can easily come back in yield and all of a sudden people say, let me buy my f. A. N. G. Stocks again. Were in the sweet spot. But the other upside surprise is Revenue Growth and Earnings Growth were seeing tremendous Revenue Growth and Earnings Growth this is the best revenue beat quarter weve had in ten years the revenue surprise could be the positive effect of lower regulation and a friendlier tax environment for Corporate America and business comes in at a stronger clip than expected. Thats already been happening. We think its only accounting for about half the Earnings Growth and so that you can see a 16 year in corporate earnings this year. That would be an upside surprise all right but that sounds like it might be priced in already. Thats the question, exactly. Did january extrapolate a lot of the good stuff selloff to threeyear lows. Were seeing that pe come in a more normalized way. Some of that gets sucked up with the wage inflation, which has its own affects not to put ray dalio on the couch, but one reason i believe hes doubling back because those comments about a blowoff top are not his core thesis. Hes worried about the state of things, too much debt. I feel like he has been for years. That was a bit of an aberration saying everyone is so excited at davos, the market is melting up, i have to get on it. Great point thank you so much. President trump unveiled his longawaited infrastructure plan lets get to kayla with those details. Reporter the white house blueprint was exactly as telegraphed. 200 billion federal Infrastructure Investment requiring extensive participation from the private sector as well as state and local governments in order to reach that 1. 5 trillion total package. When it was released today, at it had few surprises, we did get support from business groups in washington the chamber of commerce, the Business Roundtable and American Investment council all coming out in support of the plan the American Society of Civil Engineers saying that it was a solid first step the plan did get a sharp rebuke from senate democrats, Chuck Schumer saying the federal government should shoulder more of the final payment trump infrastructure plan relies on private parties or state and localities to put up the lions share of the money. In turn, those entities would either have to charge local taxpayers new tolls or raise taxes and other fees to pay for the new infrastructure reporter schumer has called for a 1 trillion total federal investment in infrastructure that, too, would be dead on arrival. Democratic participation will be needed here. This will have to be a bipartisan effort. There will be 11 committees involved in this effort. Much more complicated as a legislative haul than tax reform was. Even so, cohn put out a note saying while this package is probably going nowhere on capitol hill, the piecemeal infrastructure efforts taken as a whole are incredibly important for the market writing in a note today saying, hoover dam and Tennessee Valley authority, this is not, but taken as a whole, it is meaningful well see what type of package the white house can actually move on the hill and where they find that support. Kelly . Kayla, thank you. You can find out how to play infrastructure well talk to the fast money guys about that coming up. Theres a lot more ahead on the closing bell. Announcer potential home buyers and investors beware. Mortgage rates are really starting to soar see where the 30year is and its impact on housing stocks, the spring real estate season, the price of your house. Plus, the infrastructure stocks to buy after the president s announcement today also today, the captain of the 1980 gold medal winning u. S. Mens ice hockey and were counting you down to curling at 5 00 p. M. Right here on cnbc the closing bell is back in two minutes. Everyone has a thing. That binge watch over the weekend thing. More checkingin or checking out things. That tripledouble thing doing it yourself or tagging a friend thing. More revolutions in the making thing. That play like a girl thing. That fourlegged friends thing. At t gives you more for your thing. More entertainment, internet, and unlimited plans. More for your thing. Yeah, thats our thing. Mom anits not theirs. Car. Its mine. Mine. Mine. And it always will be, forever and forever. The new rx 350l with three rows for seven passengers. Experience amazing at your lexus dealer. Spiking. Earlier the tenyear note went over 2. 9 . Diana olick has the details. The timing couldnt be worse. The Spring Market jump started early this year because of strong competition for a record low spri of homes for sale now Mortgage Rates are at their highest level in four years and poised to move even higher they losely follow the yield on the tenyear treasury, which as you said, is up again today. The average rate on the popular 30year fixed is now right around 4. 5 . Still low historically but buyers over the past six years have gotten more used to rates in the 3 range. Mortgage rates havent been at 5 since 2011. So, a 5 rate, what would that do it would cause more than a quarter of todays home buyers to slow their plans, according to a redfin survey of 4,000 customers at the end of last year just 6 , though, said they would drop their plans to buy a home all together about onefifth of consumers said 5 rates would cause them to move with more urgency to buy a house, fearing rates would rise even further. Another fifth said they would consider more affordable areas or just buy a smaller home now, rates have been very volatile lately, so they could drop again, but the trajectory for the year definitely higher more on this on cnbc. Com kelly . Thank you. Lets talk more about home understanders wi builders with ken leon diana reported about homes in denver that had 100 different buyers showing up to scout them out. What would higher rates do to affordability and demand in this hot market clearly, 5 would be the red zone, but today were at about 4. 3 well be in the 4 level range most of this year, which is good builder confidence is at an 18year high most of the builders have just reported very strong Fourth Quarter and backlog for 2018 the denver anecdote matters in terms of investing to what regions youre in. I wonder, its interesting because nobody disputes a very strong supply demand dynamics for this area but they keep quibbling with either the Financing Rate or the availability of labor and cost of labor and cost of materials that maybe is going to squeeze some of the builders where does that sit in terms of working through the earnings forecast this year yeah, so we watched that closely. It filters into what is called gross margin land cost is the biggest factor. But generally most of the builders are in a good position for 2018 labor will move lockstep with home price increases probably around 4 or 5 this year. A little higher in markets like californ california a year ago timber costs, Building Materials were an issue. Less of a factor as we look at flat to up on gross margins. And youve got d. R. Horton, toll brothers, some of your top picks. Thanks for joining us. Thank you. Ken leon. We had stocks rallying for a second straight day. Theyre up sharply from just fridays intraday lows up 4 to 5 . Up next chief strategist at suntrust tells us whether you should buy into this bounceback. Well get thft moye asne trade on how you can cash in on the president s new infrastructure plan. [fbi agent] youre a brave man, mr. Stevens. Your testimony will save lives. Mr. Stevens . This is your new name. This is your new house. And a perfectly inconspicuous suv. You must become invisible. [hero] ill take my chances. Another big gain for the dow, up 400 points gives investors to take a deep breath but what happens now . Joining us is keith lerner, chief Market Strategist at suntrust adds viz advisory serv. Thanks for joining us. Now that weve seen this is volatility, and by some measures its still elevated, what do you think investors should do . Well, we told folks last week we thought that the pullback was a buying opportunity i will say when weve seen these sharp declines in the past, the bottom and process typically happens over weeks and months, not days investors should be prepared for a lot of back and forth. When we look back at the last 16 corrections a year later, markets were up 20 . Ultimately, we think the bull market still has legs. Ken keith, excuse me what areas of the market at this point have been sort of unduly punished are we looking for areas that have basically been knocked down more than the fundamentals were . Or is it across the board kind of haircut that leaves us where we were a few weeks ago . What i thought was important is you look at financials. They stayed well above the 200day moving average, technical trends are positive. We would still move there. Py still like the industrial sector, Global Economy is on sound footing. Earnings are also very strong. Were seeing a lot of opportunities and also if we look outside the u. S. , were finding opportunities like japan, emerging markets as well. Zoo kei you dont think anything has fundamentally changed. Are we going to get back on track to the markets weve had or is Something Different because of higher Interest Rates or what have you theres a regime shift. Weve gone through this with low liquidity, low valuations. Now were transitioning into more growth and less liquidity i think there will be more back and forth. We have corrected some bullish sentiment and sentiment is back to a twoyear low and earnings are extremely low. Over the last month weve seen earning revisions up 7 . After we get through this process of back and foerts, this bottoming process, we think stocks will move higher. The question is, what is the market now, if it happens to account for more volatility and higher Interest Rates and who knows about inflation. Whats the multiple this market will be willing to place on those earnings everybody pretty much is on board with the idea that earnings forecasts are theyre kind of taking off and probably look like theyre going to be met . Sure. We bottom around 6. 3 multiple. You can potentially get up to 17 multiple at some point i think theres upside to the earning estimate we think the u. S. Dollar is down 10 . The Global Economy is sound. It still takes time to filter all the impact of this tax stimulus for all these different companies. Theres still upside left. We dont expect robust gains weve seen the last four or five years. But on a relative basis, stocks still look good. Keith, thanks for joining us. Thank you. Dont look now, but stocks are on their strongest twoday win streak in more than two congar mi up, you with find where there is still value in this market tier with companies soutn that are developing powerful batteries that make everything from cell phones to rail cars more efficient. Which helps improve every aspect of advanced rail technology. All with support from a highlyeducated workforce and vocational job training. Across new york state, were building the new new york. To grow your business with us in new york state, visit esd. Ny. Gov. To grow your business with us in new york state, weve been preparing for this day. Over the years, paul and i have met regularly with our ameriprise advisor. We plan for everything from retirement to college savings. Giving us the ability to add on for an important member of our family. Welcome home mom. With the right financial advisor, life can be brilliant. Welcome back its time for a cnbc news update with sue herera. Hello, everyone heres whats happening at this hour police say donald trump jr. s wife opened an envelope that contained a white powder she felt ill and was taken to a new york City Hospital as a precaution she called 911 after opening the letter, which was addressed to her husband at their new york city apartment a preliminary test indicates the substance was not dangerous. Two passenger trains colliding in central austria, killing one person and injuring 22 others. Currently officials have not determined the cause of that crash. France has returned a 16th Century Oil Painting that was stolen by the nazis during world war ii and returned it to a jewish couples heir s. It sat unclaimed in a French Museum for 70 years. The worlds Tallest Hotel dade intoed in dubai today it stands just over 1,167 feet, breaking the record of the dubai based marques, which is three feet shorter. Thats way up. Way up to date. Sue, thank you very much sue herera lets get to some other big stories. If you missed it today, our rapid recap. The Winter Olympics are under way in south korea. What a weekend of competition. A lot of u. S. Success in figure skating, in snowboarding and in the luge as well. Green arrows this morning as the bulls try to battle back from the dows worst week in two years. Theres been a Market Correction off anywhere from 6 to 9 , which, frankly, given where asset prices were, very high its, in our view, a welcome correction. This is not the market you come in up 250 on the dow. You do not do that you can say you missed it. But to come in at these levels is to court danger. Dow jones industrial average is up by 450 points. Stocks have picked up their rally, going to be the first backtoback ganins in the month of february. The white house released infrastructure blueprint the states will have to do it themselves if we dont do it i would like to help the states out. Were doing that with a very big investment. Stocks are soaring. You see gains better than 2 for the dow. Almost 2 for the s p 500 and the nasdaq. The big rebound day on wall street the dow closing higher over 400 points that puts us about 5 higher from the lows we saw just intraday on friday a 1. 7 gain for the blue chips today. About that infrastructure plan, the white house expects it to spur 1. 5 trillion in investment in this countrys roads, bridges and airports over the next decade. Joining us to talk about what it could mean for our biggest builders, fast money trader, steve grasso, you have like nine days off. Its crazy. I dont know what to do with myself. We want all your time, all your attention we just showed the infrastructure etf it was only up 1 today. It underperformed the overall market why . I was just going to throw in that that that thats a Global Infrastructure etf. Its like 40 utility, a lot of pipelines 40 utility its not building of infrastructure i think thats why, perhaps, it was its not direct but if you look at the names that are direct plays, like cat tractor or stihl or united rentals, they took the hit when it comes to the brunt of the selloff. It was not a rescue. It was not a cureall pill talking about infrastructure. Like a bunch of money coming. Correct. And when you look at the direct investment from the federal government, its 200 billion. The rest of it is state and local communities, local governments. So, maybe they dont think its going to be as quick an injections of cash as people once thought when it was shovelready jobs. We remember the shovelready jobs we also know a lot of people poopooed this and stocks havent run up massively is it they could be underappreciating what could come through here if you take a longer view . I know strategis is more bullish than what the stocks are. If you believe this will filter through, 1. 5 trillion is a big deal to get excited out. President trump had thrown out that deal january 24th when he originally said 1. 7 trillion. And then it backed off but the democrats, i think the key to this is that infrastructure is usually bipartisan democrats threw out their bill, 1 trillion, but its 100 , basically government financed. Federal financing. So, i think somewhere in the weeds, somewhere in the granu r granularity this will shake out, and with the potential to be as bullish as strategis might be on it. The interesting thing is the nature, to your point about the granularity. Theyre talking about funds that might privatize reagan and newark and dulles and reassigning those to the local authorities to reinvest. When we talk about ways to invest around this, this could be very different. I think thats one of the reasons its a little maybe too many moves down the chess board to figure out today if were going to price something in a dramatic way remember how the market was with health care . It was only in the latter stages, is it really going to happen that some of the stocks started to have a give and stay on the headlines so, i think we have to and then it fell apart. Exactly we have to see how the process plays out to know if thats the reason you either like or dont like some of these names. You might have had a masco, a vulcan moving on this kind of prospect today, but how would you be playing it, steve i think the fact they were hit so hard during that selloff, i think you have to be weary of playing the infrastructure play as a whole if you believe now these risk parity funds or the ctas can help on the way up the same way they hit us on the way down are people saying that . Yeah, they are now. So, when you look at the way we traded up, if you believe that they were the reason why we traded down, you have to believe in the inverse so, im im surprised it actually took a couple of days to figure out because it was passive investing that helped. Youre saying were going back to the meltup. If we go back to the way things were coming into this year, were going back to the meltup. If the ctas and the risk parity guys caused the selloff and now all of a sudden the right back to where we were things, of course, thats one of the reasons. Its frightening on both sides that no one understands the risk parameters of this marketplace that the computers are feeding into their callculus that you could be flipped if we go back to the market we had, thats scary. I dont necessarily think that would be your bet first of all, im not sure those guys were 100 definitely not 100 . But the other piece is, how do we get to the point where we could be so susceptible to a volatility shock 14 months of no 1 down days the machines that learn the pattern are building in this idea we never go down. True. Well see if that has. Including on infrastructure. Steve, thank you thank you. Normally we would remind you to tune into fast money at 5 00 but for the next two weeks we have olympics coverage. Curling after the closing bell. Dont miss todays matches, south korea no, theyre in it dont miss todays matches from south korea as we know the Winter Olympics from pyeongchang begins at the top of the hour. Were going to talk about finding value in that near hyperbolic stock market. It can be difficult but we have some ideas for you when we come right back on the closing bell. It doesnt matter what kind of weather. It doesnt matter what time of day or night. When mother natures done her worst, the only thing that matters to us is keeping the lights on for you. 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Welcome back a big rally on wall street today after that wild ride last week the dow was up 410 on the bell joining us to talk about where some investors see value in this market environment is trip miller hi, thanks for joining us. Thanks for having me on today, kelly. So, you brought its funny. You dont often see berkshire and amazon mentioned in the same sentence talking about value picks but explain why those pop up for you. We are Value Investors. Weve loved Berkshire Hathaway for many decades it isnt often we get the chance to buy a business like berkshire. When it trades off over so and its trading down more than the market over the last ten days weve seen that happen weve seen berkshire pop back up recently it shows that Value Investors and investors in general need to be very well equipped and prepared to take advantage of these inflexion poinction points amazon, we said buy on the dips and we got one recently and we were adding to our position in both those names. Forpeople who dont have 300k to drop on berkshire a shares, should they buy a fraction, go with the b shares weve been buying the b shares because of the liquidity and how easy it is to get in on those. Going back to amazon. You just called amazon a value play for anybody that had a heart attack hearing that, explain why. Well, for us it was a value play a long time ago when prices were much lower. If is still is because of the Free Cash Flow its pulling off. We believe Free Cash Flow equals optionality for smart people to do smart things. They have the opportunity to explore capital and multiple verticals that we feel have trillions of dollars with opportunity, aws, the retail business, potentially getting into health and other avenues, so we see a lot of verticals that give them optionality for the long term. Tripp, in addition to amazon, had you seem to also hold and like fedex, which is probably reassuring for fedex because theyve been cast as a potential amazon victim here yes, we dont just like fedex and the news with fedex knocked the stock down on top of the general market pulling back. We feel fedex is little impacted by the news coming out of amazon in less than 3 of fedexs revenue is tied to amazon. U. P. S. Has 10 of revenue tied to amazon. When you look at the rate that amazon is growing, even adding ground and air assetses, they wont be able to supply and keep up with the growth that they have just internally let alone organically. So, we feel like theyll be dependent on fedex, u. P. S. And the Postal Service for many years to come. We think this was a much ado about nothing in the short term. We learned something, memphians, thats what you call people from memphis . Yes, we do. Sounds like ambiguous now i want to use that ill have to find another context. Well have you back. Thank you. Thank you for having me. Stocks stormed back for a second straight day. Up next, well look at whats driving the buying and see whether it can continue. First, though, a look at the dow jones Medal Winners in todays stock market rally how about the gold apple gets atop the podium dow dupont with the silver and boeing gets the bronze back in two. At fidelity, trades are now just 4. 95. We cut the price of trades to give investors even more value. And at 4. 95, you can trade with a clear advantage. Fidelity, where smarter investors will always be. And at 4. 95, you can trade with a clear advantage. The markets change. At t. Rowe price. Our disciplined approach remains. Global markets may be uncertain. But you can feel confident in our investment experience around the world. Call us or your advisor. T. Rowe price. Invest with confidence. When my vehicle i wwas hit by an ied. R in iraq i looked down and i knew i was out of the fight. But playing for team usa has been a Second Chance to represent my country. I get to show my children and the world that, yeah, i might have been knocked down, but im up, and im honored to be able to represent the flag. Comcast is grateful to all who have served our country, and were proud to bring the 2018 olympic and Paralympic Winter Games home to everyone. Were up two Straight Days after last weeks losses lets check on the sectors seeing the biggest pop from fridays lows with seema modi. Following todays rally, the s p 500 is 5 above its low on friday afternoon last weeks losers driving this weeks comeback with technology up over 6 from its friday low, followed by consumer discretionary, energy up over 5 breaking down the subsectors tells an interesting story within energy its natural gas thats higher. In health care we saw strong buying in biotech and retail with a 6 gain from its recent low. A lot of traders say, though, theyll be watching this Inflation Report on wednesday for more market cues as to whether the selloff is truly over. There hasnt been this much hype about a cpi report in a long time. The dow just had its best twoday gains since august 2015 after the massive selloff. Bob pisani is here what drove the rally thats a little craziness in great markets you cant get in and bad markets you cant get out. Weve gone from the big debate over the weekend, are we at a tradeable bottom to too far, too fast in two trading sessions. After dropping 2800 points in a little more than a week the dow regained almost 40 by the close on monday. So, lets go to the point. Why the rally . Most traders believe the fundamentals are still intact. Higher earnings and a Global Economic recovery. Many were forced to lighten up in the chaos last week some have decided to go long with the momentum weve seen you cant have outperformance in cash thats another old saying. For a lot of traders, this was way too cash the correction is only six days old, far too soon to call any bottom the culprit is the underlying y euphoria investors are itching to buy theyre arguing there are too many weak longs in the market, that are traders just in for the momentum and dont believe in the fundamentals thats why many believe we may retest the lows at some point. Some arguing even by next week heres one warning sign. The russ williell 2000 turned ne in the middle of the morning thats a sign the fear of rise in rates is real thats a slap in the face to traders that keep arguing last weeks down move was just a technical correction i think it was not just a technical correction you and i have statalked about this there was a fundamental basis behind this. Someone cheekily observed, why do we just call it a correction when the market is going down and not why dont we i made the point i wanted you to make that point. I made the point first of all, the phrase comes from when prices diverge too much from longer term trend, a correction is when it comes back. Rarely in pure old time technical analyses you would have had sgl plunomething plung far down and correcting back up. This is why it fits especially had year. We came in going so high so quickly. Does that make this more we touched the 200day average. Bounced off that. Which is a longer term trend. It basically returned to the twoyear uptrend doesnt mean it stops there necessarily for good but thats what it accomplished. Im in the camp, the cpi and ppi, thats the most important tradeable event this week. The last time we had wage inflation, that moved the markets. The s p dropped 50 points on friday a week and a half ago. The worst that can happen is theyre theyre up by. 1 zero or go up by. 3. Well see. Bob, thank you very much bob pisani the 1980 miracle on ice, it may be the most iconic sporting event in olympic history its story told in movies from books to tv commercials. Ahead, were going to talk to one of the miracle men, team captain mike arisioni. Everyone has a thing. That binge watch over the weekend thing. More checkingin or checking out things. That tripledouble thing doing it yourself or tagging a friend thing. More revolutions in the making thing. That play like a girl thing. That fourlegged friends thing. At t gives you more for your thing. More entertainment, internet, and unlimited plans. More for your thing. Yeah, thats our thing. Im not really a, i thought wall street guy. Ns. Whats the hesitation . Eh, it just feels too complicated, you know . Well sure, at first, but jj can help you with that. Jj, will you break it down for this gentleman . Hey, ian. You know, at Td Ameritrade, we can walk you through your options trades step by step until youre comfortable. I could be up for that. Thats taking options trading from wall st. To main st. Hey guys, wanna play some pool . Eh, im not really a pool guy. Whats the hesitation . Its just complicated. Stepbystep options trading support from Td Ameritrade today, the new new york is ready for takeoff. Were invested in creating the worlds first stateoftheart drone testing facility in Central New York and the mohawk valley, which marks the start of our nations first 50mile unmanned flight corridor. And allows us to attract the worlds top drone talent. All across new york state, were building the new new york. To grow your business with us in new york state, visit esd. Ny. Gov. I do not own bitcoin, no, i dont. I stayed out of that whole whatever it is i dont even know what it circumstances i dont any bitcoin. But ive heard of it its a crypto currency i think there are a few people that have it but for me to use it, ill see how it goes. I hear about bitcoin, but im not interested about bitcoin. I have heard about it recently the big bang theory. But i dont any of it. I have some friends that trade it in. But i dont own any. Unfortunately. Im not so sure ive heard so much about it. But i dont know i dont know. It seems like its too late to jump on it or get on the train, you know from what ive read, it dropped recently again, it was at a really high couple of weeks or months ago. I havent really paid that much attention to it my brother talking to me about it. I dont own its not so popular in belgiumium but apparently i miss something. Youre making good money if you invested a few years ago none of them seem too bothered by it for olympic hockey fans, this is a man who needs no introduction. Mike eruzione was the captain of the 1980 goldwyning u. S. Hockey team he scored the winning goal against the soviet union in the game that became known as the miracle on ice mike is live in boston mike, thanks for joining us. Yeah, thanks for having me on acan i ask you before we go, watched this movie on every lacrosse bus trip. It might be my Favorite Movie of of all time. I love it. What are the parallels that scene where he is blowing the whistle and he just says again and again. Does that capture what was happening in preparation for you guys yeah. I mean, that was part of our training herb called that conditioning. We called it punishment. But when i look back on the success of our team, those skating drills that we did for six months clearly paid off because i think we were probably the best conditioned team in the Olympic Games that year. Yeah, i mean a lot of what you all did paid off, mike i wonder if youve been able obviously 38 years later, which is unbelievable to me. But i wonder if youve been able to kind of look back and able to reconstruct what it was about that combination of people and preparation and the moment and anything that you can generalize and tell people what really mattered at this time. Well, you know, it was a long time ago but i think the one thing, we were a lot better than people thought. We had some really good hockey players. Neil braten, davy ramsey, christian, kenny morrow from the olympic team to four straight septuplets to the new york islanders. Our talent was a lot better than people thought and we were a close team we had a great bond. We had a great friendship. We had great chemistry and those are qualities that a very important when putting a team together. In a short period of time. Its only a twoweek tournament. So we put everything together at the right time and again, like i said, i think we war lot better than people gave us credit for and in terms of the games right now, what are your thoughts about the nhl players not participating at this point . Well, im a little disappointed because i think were making Great Strides with growing the sport of ice hockey globally and what better way to showcase your sport than these amazingly talented players from all over the world. B having said that, each country is going to send another team there we have great depth. There there will be four college kids on this team. Im excited about the opportunity for them to showcase their skills and its a wide open tournament. I know the russians are supposedly the favorites but dont count out the u. S. Team thaichlt got some great leaders. Theyve got some experience. And lets see what happens mike, one quick tensecond piece of advice for all these kids now on the international scene. Well, i think embrace the moment enjoy it this is their opportunity to shine, you know. A lot of these kids were passed by many years for olympic teams. And now this is their opportunity to play. So embrace it. Enjoy it and have fun with it mike eruzione, its a miracle that i get to talk to you. Thanks for joining us. That does it for closing bell today. Olympic curling begins right now. For the next 12 days, this will be curling