confidence across the globe on this date three years ago in 2010. but there is more high frequency trading than ever before. could it happen again? we have a special report. we're going to look at that coming up. >> indeed, we will. plus dow component pfizer selling viagra directly to patients on its website. it is a move that could have a huge impact on the drug industry. every pharmaceutical is watching it very closely. we're going to bring you much more on that developing story. >> exactly. meantime, let's get you caught up on the day. stutter step opening this morning for the dow. we had a few european and asian markets closed overnight. not a lot of participation today. a pretty narrow range. ironically, three years to the day after that 1,000 point range because of the flash crash, today the dow's range is only about 40 points. we were up 14 at the high of the day. nasdaq led higher again by apple which has come out of the doldrums. the nasdaq composite up 15 points right now at 3393. and the s&p 500 index is still above the 1600 level. went above that for the first time on friday. now with a four point gain at 1618. >> okay. in today's "closing bell exchange" we have brian belski. steve shacks. steve liesman sitting here next to me on the desk. also rick santelli. brian belski, we're heading towards the close. we going to close above the big milestone today? >> sure looks like it. what's nice about this current market trend, mandy, is that for years as mr. griffith and i have been talking about on the show, the markets clearly kind of changed its trend. we used to sell off the last hour. now the bull market is clearly in charge and we tend to see more buying at the end of the day. i think that's very strong on a near term basis. again, from an intermediate basis we think the market may be ahead of itself. that's what bull markets do. they run a little too high, too fast. >> two questions, mr. belski. one, is that google glass you're wearing there? number two, when last i checked your objective for the s&p for this year was 1575. have you revised that? >> we have not, bill. we're still very comfortable with 1575. we think the market, at least on a near term basis, may be ahead of itself. we do not like the adage. it's different this time. many people are talking about it's different this time, this spring, as defensives lead the market higher. it's really difficult, bill, from a longer term perspective in terms of market history and fundamentals for defensives to lead for any kind of significant time period. we think this is just a rush for yield which we think is very short term. we do think those yield bearing instruments will be sources of cash for the true growth areas like industrials -- >> steve sachs, how much different is it this time three years on. we talk about the anniversary of the flash crash. could it happen again? >> you know, from a market structure perspective, mandy, it actually could. we see small signs of this on any given day. we see sort of mini crashes in individual equities on almost any given day. again, it's just nothing more than a natural by-product of the market microstructure in which we have. it took us about ten years to get here from a sort of market structure change starting with -- unfortunately it's sort of a by-product of the environment we live in. again, we've also put a lot of protections in since the flash crash of 2010. obviously it's something that's very high on the radar screen of the regulators as well. >> steve liesman, i know you've been talking all day on cnbc about a seeming dichotomy between the jobs number on friday which was revised upward sharply for february and march and sort of the data we've been getting lately, which hasn't been all that great. who's right here? what's going on? >> i think time's going to tell, bill. i think there's definitely a disparity there. the level of job growth has certainly been above the level of employment growth. and the thinking among economists is that one of them's going to give. either the growth's going to be revised higher or jobs will be -- will become lower. what i did pick up and read in the commentary over the weekend when economists do their weekly and bigger think pieces away from the high frequency data is that they were just not as optimistic about the jobs number on friday as investors were. now, maybe investors think, you know what, i got the fed behind me and even a little bit of job growth is enough to make me bullish. but certainly on its face, the reaction of the market was not the reaction of economists to the number. >> maybe also because we know that the first number is not going to be the final number. they get revised so much and so often. >> right. but they could be revised the other way, too, mandy. >> absolutely. >> it could go down. the thinking is that there's weakness to come in the sense of the sequester hasn't hit yet. there's still a lot of economists that are throwing in job losses certainly on the government side. also be extense ion to the prive sector from the government contracts. >> rick santelli, earlier this morning on "squawk box" as you well know warren buffett talked about his take on investing in stocks versus bonds. here's what he said. we'll get your reaction to this. >> i like owning stocks. i do not like owning bonds now. there could be conditions under which we would own bonds. but they're conditions far different than what exists now. bonds are priced artificially. you've got some guy buying 85 billion a month. that will change at some point. when it changes, people could lose a lot of money if they're in long-term bonds. >> what do you think, rick? >> i think he only told us half the story. the fed is having the same type of effect in the stock market as it's having in the treasury complex and treasury rates. i think that stocks could have a rough time when, as warren said, those guys stop buying 85 billion a month. i think he sees rose colored glasses with the effects of those programs on stocks, even though he's very critical about treasuries, but treasuries aren't the treasuries that he's being critical of. you've said it time and time again. there's a thumb on the scale. it always astonishes me that that's so overlooked in these comments about what position you would have -- >> he did point out that yields are artificial -- he used the word artificially low because of the fed's intervention. and that's what bothers him. you know, this is not a reflection of economic activity as you have pointed out many, many times. >> then why didn't he say it bothered him just as much in his long stock position? >> because they're fundamentals, rick. >> he talked about productive assets. right. he talked about productive assets. how much of that productivity is due to the fed? i'm just thinking it wasn't balanced in terms of what the fed's impact is on both markets. >> steve? >> i think rick is right that he could have been more balanced about the effect of fed. >> good point, yes. >> on equities. i also think when you look at equities there are earnings, there are profit margins, there are dividend yields. there are things that are much more fundamental to stock valuation at least that an investor can make a decision about compared to the bond market where it seems to be very contingent on the 85 billion dollar number the -- >> brian belski, what to you think happens? which fares worse, bonds or stocks? >> over the short term, mandy, we have now reared an entire generation of investors that all they think that stocks go up because of cheap money and interest rates go down. you're going to have a negative impact on a short term basis on equities but longer term, remember, i'm a child of the '80s and '90s. when we were investing back then we learned that equities are the true inflation hedge. and as the economy continues to recover and as interest rates slowly go up, equities are going to be the place to be. we now need to see a relinking of interest rates and the economy and the dollar and all these kind of things. it's happening before our very eyes, but over the short term when the fed begins to pull the plug investors in stocks are going to quote, unquote, freak out and the market's going to go down and it's going to create a great buying opportunity. >> certainly they would only be pulling back when they thought the economy was strong enough. that should be good for stocks. what do you think about on that score, stocks versus bonds, steve sachs? >> yeah. no, i agree with steve liesman. the connection between the fed policy and fixed income in equity securities, vastly different. not unconnected, but vastly different. fundamentals is what's driving equities. the fact of the matter is, is the make ro economic picture aside from a few data points here and there, it's actually pretty good here in the u.s. particularly relative to the rest of the world. yeah, could we see some sort of short term pullback when the fed stops buying bonds? we could. i actually think that'll tend to get ignored when that actually happens. because we should be so far into the fundamental good picture at that point and the macroeconomic picture that ultimately i don't think that'll have a whole lot of weight on stocks. obviously from fixed income perspective, much, much different story. particularly investors we deal with on a daily basis. very concerned about fixed inco income exposure. >> rick santelli, last chance to respond. whether stocks are at levels based on fundament aals rather than just fed policy. >> historic investors even like warren buffett are going to be surprised at what type of an egg the stock market legs when the fed's beneficiary takes a hiatus. >> okay. >> there's a stunned silence among our panelists at that one. >> you said it was the last 30 seconds. i was just being good. i was just behaving. >> let the record show -- >> when you speak, we all obey. >> let the record show steve liesman actually took a wrap. that's amazing. thank you all for joining us today. he can take it. thanks, guys. we're heading toward the close, mandy. we've got about 50 minutes left of the trading session. why is liesman so surprised at that? up four points on the dow today on light volume. the flash crash as we've mentioned was three years ago. but are the markets any safer or fairer than they were back then? >> we'll look at that. plus a lot of big news affecting the dow stocks today themselves, including big news for walmart. we'll break them all down, find out which ones could be in trouble coming up. pfizer's planning to sell viagra online. how this could really shake the whole pharmaceutical and drugstore space up and how much you pay for prescriptions. we're going to be back right after this. ♪ ♪ here we are, me and you ♪ on the road ♪ and we know that it goes on and on ♪ [ female announcer ] you're the boss of your life. in charge of making memories and keeping promises. ask your financial professional how lincoln financial can help you take charge of your future. ♪ ♪ oh, oh, all the way ♪ oh, oh the cloud today as it kicks off its max conference in los angeles this week. jon fortt is there with adobe ceo with this exclusive interview. jon? >> thanks, bill. thanks for sitting down with us. want to go straight to this change with creative cloud. tell me, what are the risks involved? i mean, some of the lower end customers might not want to go straight to subscription. how do you see this playing out? >> jon, it's an exciting day for adobe. as you know, we announced stunning new creative applications. a new community integration with v hands. new collaborative features. and some great new prototype hardware as well. what we've said is that all of this innovation is going to be delivered to our customers primarily through the cloud. we have very attractive options for people who have been traditional customers to migrate to the cloud. but i think all our customers will look at the innovation and recognize a connected, creative application is the only way to create. >> it's a bold move. adobe the first big software company to move so boldly into the cloud. really excited to see where that goes. tell me, you've said in the past 1.25 million subscribers to creative cloud by the end of this year. 4 million by the end of 2015. does this move change the math on that a bit? >> no. those targets were already factored in when we gave them to the financial community. but if you think of the tens of millions of creative professionals who have bought adobe software, i think this clearly aligning us all to us showing where the future of creative is, which is the creative cloud. and so we continue to be bullish about this. >> on hardware, you showed off a pen and also a ruler, a little ruler called napoleon, code name. the crowd liked that. when are we going to actually see that as a product? you tend to review things, then they roll out a year later. might we see this within a year? >> i think if you look at the excitement that we had on the floor for those, i think the pressure is clearly on the product teams to now deliver it. we hope to be able to get it out quickly in the hands of our customers. jon, if you think about the mouse it is actually such an artificial way to draw. and when you think about the next generation tablet devices, i think it's incumbent on adobe to innovate with devices like stylus and rulers. people can expres creativity. >> give me an update on flash and mobile. i've still got questioning 'even though i know adeeby's position on you can build mobile with flash. where are things philosophically with flash on android, flash on ios? >> well, we've talked about the fact that we are really focused on flash in two big areas. that's video and gaming. but primarily on pcs. because we do have the run time on those devices. on mobile devices with ios as well as with android, we enable people to take all of that content and then translate that into either native applications on the i app devices or android native applications. but the customers are thrilled. because they can use the adobe products once and get it across all of those different devices in different formats. >> people got to stop asking me about when the iphone is going to get flash. even though i know you've addressed it before, i still get that question all the time whenever adobe comes out. finally, there seems to be kind of a professionalization of adee beau happening where you're focusing more and more on enterprise customers, on teams. is that going to continue or are we going to see a few more products for individuals in the future as well? >> the future of content, i think, is all about the entire content life cycle. and through the creative cloud, major announcements today, and the marketing cloud that you've talked to us about, we believe that adobe has a unique position. if you're watching video on a device or if you're watching a digital publication, we want adobe to be behind all of that. >> how you feeling about europe right now as you're making these announcements, talking about subscriptions, lots of shakiness as far as the outlook there. do you think europe will be able to buy in? >> we reaffirmed our targets, jon. we continue to think we're in the sweet spot and people will continue to have the need for both creative applications as well as our marketing solutions. >> shantanu, thanks for the time exclusively with us here on cnbc. lots of announcements, cloud related, collaboration related. adobe max goes on. heading toward the close with about 40 minutes left. dow up just two points. again, ironic since it was three years ago today with the flash crash that the trading range that day was 1,000 points. today it's a mere 40. one of the narrowest days in the year. >> indeed. also, warren buffett calling high speed trading, quote, legalized front running today on cnbc. >> it is not contributing anything to capitalism. >> coming up next, however, we're going to hear from one trader who says warren buffett and many others are only critical of high speed trading because they just don't understand how it really works. meanwhile, mr. buffett is one of the many ceos who also is chairman of his company. but he says most companies should split those two roles. we'll look at both sides of that issue when we continue on "closing bell." how do traders using technical analysis streamline their process? 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[ static warbles ] welcome back. as we've been mentioning today marks the third anniversary of the so-called flash crash when the dow sank 1,000 points in virtually the blink of an eye. bob pisani, have you recovered from that day yet? could it happen again? that's what people want to know. >> the answer is it could happen again but there have been some changes in trading that hopefully will mitigate any kind of the severity at least of the price drop. i'm referring to these new circuit breakers. they're called limit up, limit down that have been put in place recently, bill. let me show you how it would work. for example, suppose the stock is trading at $10. all the sudden it drops 5% in five minutes to $9.50. it would be essentially -- if it was going to be trading below $9.50 but it would be allowed to trade in a band above that. so it could trade actively between $9.50 and $10.50. that would be 5% below its last price and 5% above its last price. essentially wouldn't halt unless it dropped below that $9.50. keep trading in a band. limit up, limit down. the other thing that's changed is the elimination of stud quotes. first we have new circuit breaker. now sktub quotes have been eliminated. they were one cent bids by market makers in stocks. we had stocks trade for a penny during the flash crash. that's silly and ridiculous. that's been eliminated. market makers have different obligations. they have to be within a certain percentage of the markets. bottom line is this, bill. there's no guarantee we're not going to have another flash crash. the hope of the trading community is that these new circuit breakers will at least mitigate the worst effect of any price move whether it's a panic, whether you've got somebody with a trading glitch or whether somebody just put in a series of bad orders and caused stocks to go crazy, individual ones. hopefully these circuit breakers will make a real difference. back to you. >> high frequency trading does remain at the center of a debate over what causes flash crashes and whether it's fair, right mandy? >> absolutely. for those critics who say it gives some investors an unfair advantage or does more harm than good for the market, we've got manaj marang who says they may not understand how it works. he joins us now along with robert caplan, former vice chairman of goldman sachs. now professor at harvard school of business. to both of you, great to have you with us. what would you say to warren buffett? >> you're referring, i guess, to the comment that -- >> that it's basically legalized front running. why don't we play it again for your benefit and for everybody's benefit who might have just joined us. why don't we play this sound bite again. >> i agree. i mean, that's why these fellows exist and why they spend enormous sums on trying to get speed of transmission, you know, that's a millionth of a second or thousandth of a second faster than a other guy. it is not contributing anything to capitalism. >> that's, of course, what he had to say about high frequency trading. >>. >> i don't think there's anything new being added there. i think it's been known for some time that the buy side is suspicious of malfeasance in the electronic trading community. but i don't think that any of that has any basis in fact. so i take exception to what mr. buffett and mr. munger feel about this topic. >> how is it a productive part of the markets, then? that's what they're getting at. as warren buffett said, it doesn't contribute anything to capitalism, per se. >> it contributes a lot to capitalism, actually. the whole fundamental premise of our stock exchange. the stock exchange is the secondary market. the purpose of the secondary market is to provide liquidity to investors in the primary market. the entire social purpose of the secondary market is liquidity. and that's what the business of high frequency trading is about. high frequency trading is not anything new. it's been in existence for as long as there have been markets. basically -- >> just gets faster and faster is all. >> it does get faster as does everything in life. technology makes things faster. it makes things cheaper. there's no difference here. >> is it fair to say -- >> what are you teaching them at harvard about this, bob caplan? >> the main thing, i teach leadership at harvard. what we would say to them is whether this -- there's some positive elements on making markets and tie quotes. but you've got to be aware of it if you're in the market. for most people watching this program, what i would say to them is, you need to have a longer term horizon because you've got to understand that because of algorithmic trading and computer trading, bad news and good news can get exaggerated in the short run. and you want to be very, very careful about that. and so what computer trading does is exaggerate the moves up and down. and as a buyer of stocks, you want to be aware of it and make sure you take a longer term horizon. >> rob, okay. so it is fair to say maybe as a longer term investor high frequency trading doesn't necessarily affect you. it sort of evens out over time. but fundamentally and maybe even philosophically, is it a bad thing to have in the market or is it a necessary market structure? >> the only part -- the main part that worries me, without these safeguards that bob pisani just talked about, i think there was a problem. in that if you could have a stub quote or a dramatic trade up or down, i think the market was very vulnerable. i think that's been fixed. the second issue is this issue that warren buffett mentioned, so-called front running. people trying to make a fraction of a second advantage over the market, i think it undermines confidence in the market. i know regulators are looking at that and want to make sure that doesn't go on. >> are they still able to do that, minag. >> high frequency trading has nothing to do with front running. >> if they're able to take advantage of that split second, millisecond, nanosecond that exists before a trade goes through for a client and they're able to step in front of that and scalp a couple of pennies which can add up over time -- >> here's the thing. in order to front run you have to have client flow. the vast majority of high frequency traders don't have client flow. they're just trading in the open market, posting bids and offers in the exchanges like anybody else. they're not trading against any client flow so there is no possibility of front running. now, i don't mean to -- >> you're saying front running never happens with high frequency trading? >> i'm saying front running, in order for it to happen you have to have some sort of obligation to trade against a client's flow. and most high frequency trading is just open trading in the markets. it's not against any particular client. it's just anonymous. there are market makers who do trade against client flow. and there have been allegations of front running against market makers for a very long time. well before anyone's ever heard the term high frequency trading. but what i can tell you is that the closer that lay tensies get to zero, the less of a speed advantage anybody can have. the market is fairer today than it has ever been. >> nonetheless, do you feel, rob, the flash crash of three years ago, various other incidents like it, and the perception that some people have about high frequency trading of not leveling the playing field, do what degree do you think that's all responsible for the fact that retail participation is still quite soggy? >> i don't think -- >> sorry. >> i don't think much, actually. i actually think the fundamentals and what happened in '08 and '09 are more of a factor. i think most individual investors take a longer horizon. and the reason they're not as readily getting into the market is more the fundamental moves in the market over periods of time. i actually -- it has some impact, but i don't think it's that material. i don't think it should have a big impact on whether individual investors want to be in the market. >> okay. >> you agree? >> we have to leave it there. thank you very much to both of you for joining us today. >> okay. i guess we're done. >> i do agree. >> easily said there. thank you both for joining us. let's take a look at what the markets are up to right now. dow for its part, let's take a look at the numbers if we've got them. currently moving just slightly negative, 14,972. whether or not we can close above 15,000, well, we've got about half an hour to find out before the "closing bell." bill? >> yeah. i didn't bet on ore. i'm not betting on the 15,000 either today. is caterpillar cheap? that's what barrens said over the weekend. differing views on whether you should buy this beaten down dow component. also, pfizer is planning to start selling its blockbuster viagra directly to consumers online. somebody here says that could be a game changer for both the drug makers and the drugstores. is it safe? back in a moment. [ female announcer ] there's one thing dave's always wanted to do when he retires -- keep working, but for himself. so as his financial advisor, i took a look at everything he has. the 401(k). insurance policies. even money he's invested elsewhere. we're building a retirement plan to help him launch a second career. dave's flight school. go dave. when people talk, great things can happen. so start a conversation with an advisor who's fully invested in you. wells fargo advisors. together we'll go far. how old is the oldest person you've known? we gave people a sticker and had them show us. we learned a lot of us have known someone who's lived well into their 90s. and that's a great thing. but even though we're living longer, one thing that hasn't changed: the official retirement age. ♪ the question is how do you make sure you have the money you need to enjoy all of these years. ♪ big blue in the red. the biggest drag on that index. disney also hitting a new all time high today. disney's "iron man 3" raking in $175 million in weekend ticket sales. second biggest movie opening of all time. that stock up some 30% this year. reports tomorrow after the bell. another name to watch was bank of america. higher today since the bank settles its dispute with mbia, bond insurer. offer a credit line . finally, caterpillar, the world's largest construction and mining equipment maker also higher on the day. barons saying at these levels cat looks cheap and maybe worth a look. back to you. >> let's talk about that, whether barons is chekt or not. is caterpillar cheap at these levels? numbers on cat. technical side, carter worth. on the fundamental side, steve cortez. the stock down 2.5% this year, 20% in the last few years. is it a bargain? >> it's a mess. earnings are down 2550%. the 80 level has a lot of authority in the daily chart. stock has been toying with the prospects of breaking below those lows. we think ultimately it does. it is one of the worst performing stocks among large super cap names. the day-to-day chart is poor despite the current day-to-day strength. then the long term chart. if you look at where it's come from, you're talking about a $20 stock that went to almost $1.20 off the margin lows. all the hallmarks of a topping out, rolling over kind of situation. we're sellers. >> all right. let's see. steve, he mentioned fundamentals somewhere in there. so you're free to cite a chart if you want. but do you like caterpillar at these levels? >> bill, i do. i think barons is on to something here. i think it is certainly cheap if you look at valuation. you're only paying about ten times earnings. more importantly in terms of valuation is not necessarily a catalyst. in terms of a catalyst what i like over the last just few weeks we're finally starting to see mining resources trade well. we've had a massive rally in copper, for instance, off of last week's lows. fcx trading very well. if you've owned anything related to copper over the last few months you had to get a job in a copper mine to try to make up for the losses you had from holding mining stocks. but that is reversing now. we're starting to see constructive price action in mining. i think that's very good news for caterpillar. they responded well to poor earnings on april 22nd. i think this is a name you look to own now. >> carter? >> well, i mean, let's stay on the fundamentals for a second. one of the worst things you can have is deteriorating analyst community in terms of estimates. first call consensus was something in the order of $12 earnings for this year. now it's down to $6.50 and declining. i mean, analysts keep revising numbers lower. the stock is not getting cheaper. it's actually getting more expinsive. it was trading at eight, nine times a year and a half ago, now trading at 12 times. the chart is the real thing. if it were so cheap how come it's not higher? that's the problem. >> i think, carter, the issue here with caterpillar, too, is lowered expectations. it's been a disaster. i've been negative on the name because of its exposure to china. for the near term at least i do think this is an inflection point to try to buy. the main reason here, too, is low ore eered expectations. i think after getting crushed it's given himself a lower hurdle from here to get over. i think it's going to get over them. >> pen similcils down. time's up. see you later. heading toward the close. about 25 minutes left in the trading session here. back in plus territory on the dow. again, it has been a very narrowly traded day today, mandy. >> indeed. i think 40 points or less is the trading range. being in the lowest, i think, since august last year. stocks, they may be at their record highs. but jackie deangelis has been doing some real digging. she's found several names that some think could still be undervalued gems. that's coming up next. also, the senate passing that online sales -- internet sales tax bill. but will the house agree to yet another tax increase on americans? 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>> good afternoon, mandy. it's been a record run for stocks but one of the big themes right now as the markets are sitting at these all time highs is how to find value in this market. five of the ten s&p large cap sectors are already in bull market territory since november's lows. but tech, energy, materials, telco and industrials, these are underperforming now. to find our s&p gems we looked at stocks in those sectors and found several companies that are not only sitting below their five year pe averages but have forward pes that are greater than their current pes showing growth potential. top five on our list come from the technology and energy sectors. in tech, it's apple, intel and yahoo!. in energy we're watching exxon mobil and hess. if we stick with the tech names for a moment, growth and future performance lying heavily on the shoulders of their ceos. tim cook and marissa myer have taken center stage as they look to set and execute their vision. intel recently announcing brian krizanich will take the helm of that company may 16th. intel receiving upgrade at rbc today. barons has apple ranked as number one on its 500 top american companies. i do want to give gio marino a shout out for helping me with this research, mandy. >> fantastic. thanks very much. we have just a little over quarter of an hour before the closing bell. the dow is moving just very slightly to the upside. moving in and out of negative territory today. unless we have a massive rally in the last 15 minutes, doesn't look likely to close above that 15,000 mark either, bill. >> doesn't look like that. causeway capital management's chief economist sarah keterror is becoming more cautious about this market. does she still see opportunities? she's going to lay that out for us coming up next here. also, is there any reason for investors to be concerned about a potential bubble forming in the housing market? exactly what is happening on the ground in that vital sector? ceo of home builder hovnanian weighs in exclusively later on in our show. okay. heading towards the last ten minutes of trading for this day. while we're just points away from all time hays, sarah keterer from capital management says maybe it's time to become cautious here. she joins us along with anthony chan from chase wealth management. sarah, is it just the level where we are or just that the fundamentals don't support it or what's your reasoning right now? >> we're only cautious on part of the market. it's the expensive consumer staples and those other supposed quality stocks when, in fact, you could have the entire energy sector at half the price. so it's just a portion of the market that's expensive. but there's another segment that's extremely undervalued. >> what about you, anthony chan? what's your feeling on this? >> i think sarah's right. when you look at the cyclical stocks, i think they're really undervalued. i think if the economy starts to pick up in reaction to all the stimulus and all this anti-austerity that's really sweeping the world now, i think those cyclical stocks or industrial stocks will get a second wind. >> sarah, you teased us there. bhast the other one you feel is undervalued in the sector? >> well, in addition to energy, you could take almost all the industrials. any other cyclical stocks. within energy, there are companies that i think the market really misunderstands. >> like? >> my colleagues and i at causeway look at, for example, the integrated oil such as royal dutch shell and imperial oil and total in france. huge dividends on two of those. the other buys back stocks. they have sensitives to the market or beta that's one or less. i think people completely misunderstand the stability of that income in an environment where income is hard to get. >> yes, indeed. at low interest rates. another tecter that's been discussed lately is technology. it's been underperforming but using apple as a proxy. is it coming back right now? >> i think it is going to come back. because as economic growth starts to accelerate and as there are going to continue to be pressure on margins, you're going to see companies a little bit more excited about capital spending and technology spending. and that's going to help that sector quite a bit. >> anthony, do you feel we're at a stage where any kind of pull back or breather, you have a mystic way of putting it, is actually a healthy thing? >> i have no doubt. these breathers or consolidations are healthy. in fact, nothing moves in a straight line. but keep in mind that that's no excuse for people to continue to stay out of the market because that was the same excuse that people were giving last year before the s&p went up about 13.4%. waiting for that 5% to 7% correction. again, the right strategy i think for investors is, yes, there may be a consolidation. but go ahead and phase in over a two, three, six month period so that if a breather or consolidation occurs you will get that benefit but at the same time you don't run the risk of continuing to miss this market. >> a lot of people have been climbing that wall of worry and missing out on this rally. if we had a wall of worry to climb right now, what would be top of your worry list, sarah? >> well, it's a very crowded list. but i think the monetary combination is liquidity that's been underpinning global equity markets. having that withdrawn too abruptly would certainly be a worry. although we're not expecting that. we think central banks are being very careful to ensure they're driving a steady course and avoiding deflation without inciting significant price increases. so if the withdrawal of the combination is very garage urad >> we were all talking today about warren buffett's comment that he loves stocks, doesn't like bonds mainly because of the intervention of the central banks keeping rates artificially low. but as our rick santelli pointed out, that doesn't look at the other side of the equation, that the tremendous liquidity provided and the low rates, that's also supported the stock market. why would you like stocks if it's all about the fed right now, anthony? >> because one of the things about stocks, you keep in mind, is that all this liquidity is sort of adding medication, adding morphine, whatever you want to call it to the overall economy. so to the extent that the economy uses all that liquidity to get itself up and start growing again, that's where you get the benefit. i don't think it's the low interest rates necessarily that are supporting stocks. but rather the implication that all these low interest rates and liquidity will eventually boost growth. >> sarah, you're an economist as well. are you surprised that we haven't had more bang for our buck from all that liquidity out there in the economy? don't you feel we should be in a better place than we are right now considering that? >> well, we are in a post-2008 environment. and there are investors think very clearly retain an element of risk add versiversion. emphasizing these so-called quality stocks particularly in areas such as staples and avoiding the cyclic alcyclicals >> go ahead. >> i would add to that. when youook at economic slowdowns, crises, whatever you want to call them, it's much easier for monetary policy to get the economy going again. this was not just an economic regular recession. this was a financial crisis. historically these things take a lot longer. that's one of the reasons we're not getting a bigger bang for the buck. >> so you feel like the monetary policy has not been holding the economy back in any artificial way, it's actually propping up -- we'd be in a lot worse shape if we didn't have the qe right now? >> i have no doubt. i would go one step further and say when you have a financial crisis, monetary policy is not sufficient. it's necessary, but not sufficient. we need fiscal policy, hence the now new trend towards anti-austerity. >> indeed. >> thank you, both. appreciate it very much. coming up next, we are coming right back with the closing countdown, bill. >> then "iron man." did you see "iron man" over the weekend? >> i did. the weather was beautiful and there i was stuck inside at the movie theater. i thought it was the best out of the three. >> you were not alone. a super hero for disney investors today. stock hitting an all time high after an enormous debut for the third film in that series. why this could be a bigger deal to the movie business than meets the eye. we'll talk about that coming up. >> yeah. great movie if you haven't seen it. also later on, when you're on the web, check out the big data download on cnbc.com. did you know that bad markets aren't only bad for business, they also cause the economy hundreds of billions of dollars in lost productivity? find out exactly how today at big data download. ♪ [ 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. 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[ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ all on thinkorswim from td ameritrade. ♪ okay, mandy. we got coming up on the final three minutes of trading here for this monday, it's been a very narrow day. here's the dow. this is what it's been doing or not doing as the case may be. we didn't have some asian markets or european markets trading, so not a lot of participation in the open this morning. it's been a 40 point range. very narrow. the narrowest of the year. and we're heading lower here. down about eight points at the moment. let me just show you the best performer of the day. interesting b of a would be the best performer since they announced that settlement with the new york ag on the mortgage situation. that and mbia. but the stock is up 5% so far today. >> yep. okay. we've also got -- >> i'll show you one more chart. >> please do. >> you're going to love this one. mario draghi, president of ecb went off script today. he had a speech and went off the script and reiterated they will cut more rates if need be if the financial situation in europe doesn't get any better. look what the euro did. plunged down to 130.74. we're coming off that low right now. just comments again by mario draghi. he's the rock star in europe right now and he's the guy that moves markets at this point. >> that's a chart that really does tell the story. in terms of the some of the movers you've got merck which i believe is the worst dow stock at this stage. as for the s&p, cliff's natural resources, you know, is a coal mining stock, right? obviously a sector that's been through some -- it's actually today doing pretty well. in fact, it's the best s&p mover today. as for the worst s&p mover, it is tyson foods. so, you know, that is some of the breakdown that we're seeing today in the markets. back with us also on the floor, i believe you've got peter costa, right? cnbc market analyst? >> we have peter costa standing right here. we haven't had a big selloff after the big rally on friday. >> you would expect it early on. i think we sort of saw a little bit of a sell into this this morning. then it just -- then the market just got flat and it stayed there all day. you know, these kind of days, you should wake up, look what's happened and go back to sleep. >> i appreciate that. >> i have such insight after 32 years. such insight. >> wake us up. >> let's wake him up, shall we. >> wake us up. what do we need to wake up for form? when i wake up for tomorrow morning what am i waking up for, peter? >> we're going to be looking for a lot of the fed commentary t g during the week. a lot of the different governments are speaking. everyone tries to read between the lines of those guys. i don't think you're going to get anything interesting out of any of them but i do think that's what people look at. there's not a lot of data this week. jobless claims on thursday. but there's really not a lot going on. maybe this is just an indication of what we're going to see this week. >> i know you're a stock guy, so i know where you're coming from. warren buffett, he's a stock guy, too. >> he's the best. >> he says he wouldn't touch bonds now. where there might be other times he would. simply because of all the intervention by the fed right now. it could get ugly later. >> i think it probably will at some point. but right now as far as equities are going, it really is the only game in town. even with the market down a little bit it's still the only game. >> let you get back to your nap. see you later. down about five points on what has been a narrowly traded day. but stay tuned. we've got much more to come including the ceo of havnanian on the second hour of "closing bell." >> welcome back to "closing bell." i'm mandy drury. maria will be back tomorrow. bill griffeith just walking bac to the set. stocks trade on a very narrow trading range. the flash crash three years ago we traded as much down as about 1,000 points. today trading in a range of about 40 points for the dow which finished just slightly to the downside. stocks just settling. the score, dow closing 14,969. it was not able to get back above that 15,000 mark. the s&p