Well look at whether this now will officially be called the most unloved bull market ever. It has been, thats for sure. Lets check where we stand as we approach the final hour for a monday afternoon on wall street. The Dow Jones Industrials average is now sitting at the highest levels of the afternoon with a gain in the session of 38 points. 25 higher. 15,503. Yes, unchartered territory. Nasdaq still 13year high, up 8 points,. 25 . And the s p 500, where it is also rolling around the record books here with a gain of 3 points, unchartered territory, as well, at 1,683. Bill . So will the records continue into this week . The dow and s p 500 on pace to close at alltime highs for the third day in a row. Joining us to break it down is Danielle Hughes that divine capital, michael and stan from s p capital iq and our own bob pisani. Welcome, everybody. Sam, let me kick it off with you. Were at the beginning of a week that will be very, very busy in terms of earnings. Whats your latest status check . The profit picture continues to creep its way higher. At the beginning, s p capital iq thought wed see 2. 8 . Now its 3. 2 . And historically, basically you add four Percentage Points to the original estimate, and youll come up with what is the actual number by the end of the quarter. So probably 6 to 7 range when all is said and done. The bottom line is the fundamentals are supporting this rally . So far, yes. Bill. Danny, you like this market. Weve talked about that a lot. But why doesnt the public in general like why is this an unloved rally in your view . Because the Economic News has been bad. The Economic News bad equals good for the stock market. So that dichotomy is just not playing well with investors, unfortunately. Look, retail sales for june were a disappointment. China, even though they came in at expectations for their gdp at 7. 5 , still people want to see more. And theyre just not seeing it in their hometown, and i think thats why its not equating very well. Its interesting. Everybodys looking around the corner for the next selloff. And thats one of the reasons that ralph, one of the leading technicians out there, says the rally has legs continuing. Michael, would you put new money to work here . Yeah, i probably would. Id probably put it to work in stuff that hasnt worked. Jeff cox has an incredibly, i think, wise article on cnbc. Com right now talking with this unloved rally youve been talking about. The things like emerging markets, like dividends, diversification it has not worked in this rally. And i think that what you need to do is buy things that havent worked. This reminds me a lot of the tech rally when the s p was essentially dead compared to technology. Everybody said you pile everything into tech. Thats not going to last forever. The low quality is not going to lead this market forever. So i think you do put money in. But you put it in more defensive assets. Speaking of emerging markets, bob, the chinese gdp number was right on the button, wasnt it . Thank you for that opening. 7. 5 was exactly what the Chinese Government was predicting it would be. Of course, a lot of question on friday when the finance minister appears to have come out and said the number could be closer to 6. 5 to 7 . And people were saying he was sent out to lower expectations. The Chinese News Agency corrected him and reminded him the official number was 7. 5 , and thats where it came in. The emerging markets, just quickly, a lot of people argue that materials, which are the big underperformer on the global slowdown, thats actually the group you want to consider on a secondhalf improvement on the global economy. I know defensive names i heard michael mention them are hot now, but materials have underperformed. And its buy low, sell high, remember . Bob, in terms of valuations. What are folks telling you after this pretty good move to record territory . At this point, youre still talking about a market that is not overvalued compared to past years, right . Ye yeah, 14, 15 times forward earnings. Sam will tell you that. The problem is figuring out how do you feel about Global Growth in the second half of the year and about the u. S. Economy . Weve had a lot disappointment with retail sales today. Thats a bit of a problem. Some people are lowering their estimates in the second quarter. I think the bottom line right now is, if you can answer how the Global Growth situation, you have an opinion on that, then you can invest accordingly. If youre bullish on that or feel it will improve, like i said, materials are the undervalued group right now. Lets bring in another guest, a guy i have known since i was in junior high school, it had to be about that time, john rut len rutledge, you are, what, chief investment straight jeff at, what is safand . In geneva, switzerland, private equity, real estate, all sorts of securities anywhere in the world. Cool. What are we to make of china right now . Are they with us or against us economically here . Well, you know, i think probably the issue is that we have become overdependent on chinese growth. 7. 5 in china is slower. Its not a crash. The retail sales there are doing fine. The consumers doing fine. A little less fixed assets, real estates strong. The problem is more than half of the s p earnings are offshore, and the emerging markets, or a lot of it, the fed ending quantitative easing is jerking the rates up, pulling capital flows back from emerging markets, and hurting their currencies, their economies, and their stock market. Its a dangerous market to invest in. Right. But i dont think its the end of the world. So what are the catalysts now for this market, you think . Is it earnings . Is it more commentary from the fed . What would you say, dan ni . What will be the next catalyst to move the market . I think jobs is a big, big, big, big story. I think if we can see more jobs not just temporary jobs, though. We want to see Big Companies investing in longerterm jobs, everywhere in america, globally, that i think is the big story to move this market. Sam stovall, how do you guys view china . I mean, since we got a china expert here with john, and we were all on friday focusing on what the gdp number would be, they had retail sales, all kinds of data coming out of china, and its impact on our economy and our exports. What role does that play in the numbers that you guys at s p capital iq put together . Well, knowing that they come from the government, its sort of hard not to assume that those numbers are going to come in as expected. I think we also have to decide, you cant ignore them either. I would say that the key word that you could look toward china, emerging markets, and europe is troughing. The expectations are for troughing gdp sometime this year. And slowly working our way higher, and so, i would tend to say, as dani has just mentioned, the expectation, we could see an improvement in Global Economic growth. Growth insight is looking at about 2 in the Fourth Quarter for the developed nations around the world. 5. 3 on both quartering for the emerging markets. So still, the possibility of improving Economic Growth this year. What did you make of that china gdp number, bob . We were waiting for the china number. Theres still a debate out there whether or not we can believe these numbers. Yeah, there was a lot of, shall we say, skepticism, because when the finance minister made his comments, he appeared to be lowering expect igs as, instead of 7. 5 , more towards 7 . Over the weekend, he was corrected, the chinese news media simply announced that its actually 7. 5 . They literally changed what he said. Right. Im not joking. They literally changed what he said. Yeah, the media changed what they said. Thats pretty amazing. And remarkably, it came in exactly in line with expectations. Heres the point, and i think john had a good point herement the idea is buy low and sell high. So emerging markets have dramatically underperformed so far. Materials have dramatically underperformed. If you believe, as sam said, the second half global improvement, thats the place to go. If you think its nonsense, and a lot of people dont think there will be growth, then stay away from it. The defensive stocks have had a great run. Youre not buying low on defensive in any way. John, what kind of Monetary Policy should we expect from the chinese Going Forward . They have a debt problem like everybody else does these days. They have a growth problem right now. What do you expect them to do down the road . Well, i dont think theyre worried about debt. They worry a little they worry a lot about corruption. Theyre worried a lot about the regional economies or the provinces. But i think that the pullback of capital flows from emerging markets at the end of quantitative easing is really taking the pressure off of the currency, which means i think the currency will not appreciate Going Forward. And that china will continue its efforts to redeploy its foreign reserves into real businesses, which they call going out program. So its investing outside, buying companies outside, and so forth. The improvement in the developed countries is really the u. S. Europe is still going nowhere. Japan is sputtering, and the u. S. Improvement is real. But what people have not focused on, we talked about this recently, is that the end of qe is not just stopping buying. The fed has to sell 3 trillion worth of securities sometime in the next few years. Thats going to make people choke when they hear it, push the rates up higher, pulls capital back out again. Why do they have to sell any securities . Theyve already indicated, mr. Bernanke has already indicated that he may hold to maturity. Holding to maturity does not stop the fact that when the securities leave their Balance Sheet, even at maturity, it will shrink bank reserves, so thats a sell of a security. The fed has to sell 3 trillion worth of Balance Sheet sometime in the next few years. Hmm. All right. Well leave it there. Thank you, everybody. Thanks, folks. Good to see you, john. Before we go, we take a look at the food stocks, whole food, general mill, tyson foods, all hitting alltime highs today, maria. Alltime highs on the food stocks. A big move. Thats a defensive play, that would be. A defensive play, but you have some of the growth stories on the move. The Dow Jones Industrials up 45 points. Unchartered territory. About 45 minutes before the closing bell sounds for the day. And shares of citi up slightly thanks to the betterthanexpected earnings, but theres more to the story than the headline numbers. The real scoop on citi is coming up next on closing bell. And then, dont tell the kids, but its already the backtoschool retail season. Coming up, our retail experts will grade each schools backtoschool plan. And the question again. Is this the most unloved rally in history, as they go to new music . Major indices hitting new ehigh again. Where is all of the excitement . Its right here on the closing bell. Satisfaction the most Free Research reports, customizable charts, powerful screening tools, and guaranteed 1second trades. And at the center of it all is a surprisingly low price just 7. 95. In fact, fidelity gives you lower trade commissions than schwab, td ameritrade, and etrade. Im monica santiago of fidelity investments, and low fees and commissions are another reason serious investors are choosing fidelity. Now get 200 free trades when you open an account. Welcome back. The banks have been leading the charge today on wall street. Citi became the latest financial giant to beat earnings expectations. Kayla has the details for us. Reporter bill, citys new management made new promises in the back half of last year, and todays report is seen by investors as delivering on those promises. Two quarters of consistent earnings and already near some targets set for 2015. The banks bottom line in q2 got a boost as fewer loans and mortgages went bad and the value of its existing portfolio rose. The bad bank citis holding nearly five years old shrunk by a third. Profit in the Investment Bank jumped on trading revenues and the Investment Bank is or near regulatory capital ratios thanks to deals that closed in the quarter. It wasnt all rosy, though. Citi cautioned on the u. S. Consumer and investors questioned the banks mix of exposure to emerging markets that make up roughly half of the banks revenues. In the emerging markets, the growth slowdown was front and sent ert on the companys earnings call, especially in the wake of chinas gdp number. They say it will weigh on earnings. Growth in mexico will be weak. The macro concerns arent small. But they did pale in comparison to the banks strength in executing its own strategy. Paring down branches and shaving exmenti expenses, and the shareholders will win shares, 2 intraday, so executing on being boring if thats the goal. Halfway through bank earnings, bright spots. Goldman sachs, bank of america, Morgan Stanley still to come. An interesting start to the week. Bill and maria, back to you. Kayla, thanks very much. Lets zero in on citi. Does the good outweigh the bad that she just highlighted on the banking giant . Joining us, a couple of bulls on this stock, anton and fred. Anton, why do you like citi . Are they back . Can we just say citi is back . Well, citi was a tremendous value, and theyve, you know, obviously delivered on some of the operational issues, getting the bad Bank Holdings down, getting eck pences in line. Those were important metrics. And capital has been built off the lows. Back to where theyre almost compliant with 2018 regulations. So the real, you know, juice is yet to come. And showing us earnings power that citi can earn over 6 a share in the future in 2015 or beyond really makes the stock very cheap. And it still trades at or below tangible book value. Fred, what about you . I mean, for a long time we were talking about how the ceo was separating good bank from bad bank. Where are they in terms of their strategy and what do you think needs to be done at this point to keep this momentum alive . Well, stay boring, i think, is the right term. Really, theres two stories at citi. Theres the restructuring story that anton is focused on and then the exposure. We believe the restructuring trumps the emerging markets. And theyre executing on what they need to do. Get out of businesses that dont make regular returns, control cost, get credit better, which is good, because home prices are improving in the u. S. And good address the deferred tax asset, which is a hidden problem at citi. We cant ignore it. All right. Guys, like you said, both of you are bulls on this stock. We beat the bushes all day today. Looking for a bear on this. I mean, this is sort of ironic, because a couple of years ago, we couldnt find anybody that liked this stock. Now we couldnt find anybody that doesnt like it, except for zach care bell, whos out there somewhere driving around, so we had to have him call in to tell us why he doesnt like citigroup. Zach, i hope you have your earpiece and youre not holding your phone as youre living along. Why dont you like citigroup right now . Ive pulled over. Im in witness protection because of it. Oh, yeah. I had to flee the city. No pun intended. You know, my issue with citi is similar to with any of the large mega banks. You know, the Financial Services industry had a massive expansionary period from the mid1980s through 2008. These stocks were then priced for an implosion, a collapse, the bankruptcy, the nationalization of 2009 into 10 and recovered with the recognition theyll be with us as steady, necessary performers in our economy. But they are in no way going to be an expansionary period, nor should we hope they are for the sake of Financial Health for the for the Economic System as a whole. So i dont see why would you buy one of these Large Companies whose stocks have recovered massively. These were great trades in 2010. When they are tethered to what i believe is an industry that is at very best going to flatline and still likely going to overall consolidate and shrink. All right. All right. Zach, thank you very much. Thank you, zach. Go back to your drive now. And, fred, your commentary on what, you know, zach just told us, because, anton, arent we talking about a different industry today than just five, six years ago, given the regulatory pressure, given the capital pressure . Requirements, yeah. How do you respond to zach and the larger regulatory question . Zach is right about some of the points, and very strongly right about some of the points. But these stocks are incredibly cheap to where theyve been, and theyre incredibly cheap to where theyre going still. You know, citi clearly will never earn upper teens returns again given the capital its going to have to carry. But midteens returns are possible, and cost cutting will get it there. You know, the interesting thing is the big banks are reporting very strong earnings without a lot of loan growth happening. Theyve all been restructuring stories. If we ever get this economy growing, i mean, gdp this quarter is a disaster in my opinion, you really are going to get earnings. The yield curve isnt going to help until libor starts rising. So a whole bunch of stuff to come here and the banks dont have to do anything heroic to get the earnings into the future. Thats why the generalists are buying the stocks now. By the way, ive been recommending citi for a few years now. So at least i was one of the few who liked it thin and actually i still like it now. Yeah, you have. Well give you that. Fred, what about you . Part of zachs feeling is that it has had quite a ride. All of the good news may be in this stock already, and maybe from now on if its overregulated and having to meet too many capital requirements, it is going to be boring and not return that much to the investors. Well, i think that that is certainly true, per antons point. They wont be earning 30 returns with a 2 capital base anymore. But if they can continue to make the progress, the stocks good yes, it has quite a run, but its still below tangible book value, it has a long way to book value, and can get to a reasonable returns in a regulated environment, there is still upside for the stock. Anton, real quick, what other bank stocks should we keep an eye on during the earnings season . Well, i think the ones that can outperform may not be this earnings season. I think it has to be over time. I like regions and mmt a great deal, and those are regional banks with a lot of wind in their sails. You know, mmt with the closure of hudson city coming down the world and regions with a lot of credit leverage to housing. All right. Thank you, guys. Thank you, gentlemen. Pleasure. Heading toward the close. About 40 minutes left in the trading session. The dow and s p positive. All you need is a positive close. Well still be in record territory for these major averages, maria. It looks like, bill, from down here, the traders, art cash, its to the buy side. Looking at interest going into the close. Both indices traying for the Third Straight record close. Where is the excitement . Meantime, hewlettpackard is beefing up its board by adding three bigname directors. Well talk to a market expert who says this will keep the years hottest dow component in rally mode. Plus, its a home page makeover. Check out the new and improved cnbc. Com. It is awesome, by the way. Closing bell comes right back. Stay with us. [ male announcer ] the allnew 2014 lexus is. This is your move. Financial literacy is not taught to young students. But from an early age, children internalize behaviors that affect financial Decision Making later in life. Pwc is helping spread that message. Im bob moritz, u. S. Chairman of pwc. Pwcs earn your future is a 5year, 160 million commitment to help students learn the financial skills they need as they grow. Pwcs earn your future empowering students and future leaders through financial responsibility. . The nasdaq trying to close at a fresh 13year high. High, seema. Hi, maria. Lets start with blackberry. The price at q10 has been cut in half, now selling for 99. Blackberry says with the recent arrival of the q10, now is the right time to adjust the price of the glchlt. 10. Shares of blackberry higher. Other tech stocks getting a bid. Google, microsoft, amazon, hitting alltime highs. And tesla replacing oracle in the nasdaq 100. Oracle, which moved its listing from the nasdaq to the New York Stock Exchange is trading higher by around 2 on the day. And lastly, apple in focus. Channel checks from jeffries analyst indicates the iphone 5s production will start later this month. They believe it will be available late september or early october. Bill . All right, seema, thank you very much. Hewlettpackard announce three new Board Members. They are robert bennett, ray ozzie, there they are, and james skinner. And there are plans to continue to search for additional directors in the coming months. Now, shares of the tech giant are up 85 so far this year. It is the best performing dow component of 2013 so far. The question is, can that rally continue . Lets talk numbers on hpq. On the technical side, abigail and the fundamental side steve cortese. Steve, this is a classic day of the dog of the dow. It was last years worst performer in the components, and this year, it is the best performer. Can that continue, do you think . Bill, i dont think so. And exactly as you say, with the dog of the dow, the time to buy it is when its a dog, not a highflying racehorse, which is what this has been. I dont think its justified. Is it good theyre adding Board Members . Yes. But lets remember this board is so dysfunctional and has acted so poorly with rekrim nations and back biting and private investigators for years, that it would take an entire episode of dr. Phil to get these guys to start cooperating again. I think the board is generally not to be trusted. More importantly, hp is in the wrong business. This is still a pc Company Operating in a tablet and mobile world. How does the chart look, abigail . The charts are telling a different story than steve. They are saying that the worst is behind for hpq, and that investors are looking forward toward the results of the ongoing turnaround. We could see shares climb up toward 30 by the end of 2013. When we pull up a twoyear chart of hpq, we see that its brutal downtrend is reversing. Buyers are wrestling successfully for control from sellers. Behind this reversal and move up, a bullish falling wedge. It is slingshotting shares up towards its target of 50. Maybe we see that within two, three years. Behind the actual reversal, inverse head and shoulders pattern, and most recently, a bullish continuation pattern telling us buyers are very much in control right here, now in the near term, and that they could abigail take shares up above 30. Abigail, i can see the chart has looked great lately. In terms of where we go from here, and weve seen this many times, its trading exactly where it traded 15 years ago. So the story of the turnaround is long in the tooth. When i look at the fundamentals, the most important thing is revenues. Weve seen seven straight quarters of declining revenues. And thats because it is still too focused in the wrong businesses which are pc and printers, which are commodityized and deflationary businesses. In the wrong place. Theyve been stumbling in tablet, and largely irrelevant in mobile. All good points, steve. The charts are telling us that investors are truly sympathetic to the idea that were in a fix and rebuild year, and the results will be next and beyond when we see reacceleration to growth. Weve been negative for many quarters on the bottom line, but were scheduled to go positive in the future year. And i think this is actually telling us investors think that maybe they will successfully make some kind of move into the world of tablets and smartphones. These charts are telling me investors are pretty positive about the future for hpq. Got to go at this point. Good discussion, though. This has been a very Interesting Company to watch the last few years. Thanks for joining us. Thank you. By the way, maria, before we get going. I have to mention, why am i sitting here at hq . Im doing nightly Business Report tonight, tomorrow, wednesday, with suzy. Join us on pbs. Pbs, bill, and youre live at 7 00 . I am. Youre live at im live . No, on at 6 30 eastern time. 6 30 in new york. I know in some area, its at a different time, in new york, its 6 30. I believe so. Okay. Your results will vary wherever you are, somebody. All right. Watching. All right. Youll be looking at this market, of course, with a market in record territory right here, the Dow Jones Industrials average up 28 points, 15,492 last trade, about. 25 . I just know when i tape t i dont know when it airs. Believe it or not, backtoschool shopping is already under way. When we come back, the experts give us the report cards on which big retailers are best positioned for this huge shopping season. And while you are buying those backpacks and school clothes, some retailers are be traing your every move through your cell phone s that invasion of privacy or benefit to retailers and consumers . That debate is coming up on closing bell. Theyre watching you watching you ive been doing a few things for a while that i really love tdd 18003452550 playing this and trading. 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The retailer doing its best to reach moms after disappointment during last years backtoschool season, pushing 360degree marketing approach from tv to social media. Weve heard that, you know, directionally its been hard to shop, which is why were adding navigational signage throughout the whole store. We heard it was hard to check out, so were adding mobile p. O. S. To make it easier to find a place to check out. That was Betsy Schumacher in charge of jcpenney kids department. Jcpenney also increasie ining bh and the depth of the inventory, bringing back sizes and stocks, reversing some of johnsons decision to declutter and cut the brand offer from 400 to about 100. Now, jcpenney hasnt gotten a passing grade on having the right product at the right time in a while. But the retailer has been doing its homework. Back to school will show if ullman passes the test. Bill . Theres always a test, courtney. Always. Stay there. Lets talk about that. We want to know which retailer will make the grade in the backtoschool season, right, maria . We do. With us, paul from morningstar and patrick from mkm partners. Good to see you both. Thank you for joining us. So which retailers are poised, do you think, to capture this backtoschool season . In terms of what you know their specialties are and in terms of the demand out there . Paul . Well, i guess id have to go with macys first, just because they are doing a lot of things just regular merchandising things where theres localization, better merchandise, better product. I also think theres been a little bit of bad weather at the beginning of the season. But again, i dont think the consumer is down and out. I know that, you know, some of the macro quick numbers are slowly getting better. So i think macys is going to be the beneficiary here. Unfortunately, the stock, though, has gone up a little more. Ive got it slightly overvalued, so if you wanted to bet on an underdog, you have to go to jcpenney, i think. Patrick, same question to you. Who will make the grade this time around, do you think . Sure, bill. Well, within my group, i cover discount retailers. So if you just take a look at the big guys, walmart and target, i think target is better positioned than walmart is this season going into this backtoschool season. Theyre keenly focused on design. Even if you look at, lets say, a 50cent pencil sharpener, it still has a nice target design element. Its one of their private labels, up and up. So theyre focused on design, fresh merchandise and freshness in general. Price is important, as well. But i like target over walmart going in back to school. You know, it seems to me that one of the real important components to the federal reserve, either beginning that tapering or not pe ginning that tapering is the retail sector. So how important is the shopping season not just to the retailers but to the broad economy to give us that window into what the fed is going to do . And even if the tapering is a 2013 affair maybe its not, maybe its a o 2014 affair. What do you think, patrick . Very important, certainly. And we saw the retail numbers this morning. They were light of expectations. So it has been kind of a hohum lackluster yeartodate period so far. Walmart had close to neglect live 1 comp in the first quarter. Of course, theyre the biggest retailer. Some of that has been related to the weather. But, you know, the consumer is in a little bit of a funk here, and as you know, theres some positives from a big picture standpoint in housing, the stock market, and some other things. So i think well see a pickup in sales across retail as we move into the back half of the year. The comparisons are easier, as well. You know, everyones jockeying for a good backtoschool season. Its very important, and oftentimes it kind of mirrors what happens over the holidays. So its key. Courtney, you and i spoke friday night during our special on the markets about the, as you put it, the crummy period that walmarts been through. They probably are welcoming back to school. Timing couldnt be better. I think so, too, and especially for walmart, where a mom can go to walmart and stock up on everything from the snacks to the lunch boxes to the backpacks to the shoes, the clothes to the pencil cases. And i think that is going to be a strong suit for walmart. Because that core consumer is still very shaky. Unemployment is still a big, big problem for them. Watch the rising gas prices. Theyre going to get hit before anybody else does. Theyre going to feel it. The commentary out of walmart the past quarter was not real promise Going Forward. It will be interesting to see what happens in a macroeconomic environment and how that impacts the core consumer. It is the biggest one out there for walmart, of course, the Worlds Largest retailer. Lets do the grades. The grades, paul, for jcpenney and macys. Im going to give macys an aminus, and i think that theyve got a lot of good things going for them. Theyre reinvesting in the stores. I think thats going to continue to carry through. Im going to give jcpenney a b, but thats just for this summer, because i think they fixed some of the things, but theyve got more things to fix. Especially their Online Presence is getting better. It has a long way to go. Patrick . You kind of tough on your guys, huh . No as. Well, not too tough. Right, im giving walmart a bminus. They are early. As they always are, but theyre a little bit earlier even this year than they were a year ago. Theyre in stock and sharply priced. And i would give target a bplus for some of the things i mentioned earlier, having a nice, a key word in retail now, cure rated assortment, an eye zone design and the fresh factors are very much there for target this year. Theyre going to be doing these popup shops, five popup shops in universities, very focused on backtocollege, not just backtoschool. So i give target a bplus. So let me ask you what you think the hot item will be. For a long time, weve been talking electronics. All students wanted electronics. Whats the hot item going back to school this year in. Besides the pencil sharpener. The hot item yeah, anything you think is going to be the popular the most popular item out there that kids and parents want . I mean, its apple, certainly, very important. One of the things im seeing paul, you first. Yeah, no, one of the things i think is important is that a lot of people are going out and getting apartments or getting houses, the auto sales people are getting loans. Even if thats just corresponding or correlated to the same period, i think people have a lot of spending to do around that. So i think there are going to be some larger household or automotive or just general related purchases coming up this fall. Okay. That will make the overall backtoschool season a little stronger than last year. Quickly, patrick. Yeah, maybe for back to college, probably something just iphone, ipad, that sort of thing, tablets and whatnot on the electronics side. Theres still a ways to go. Not every College Student has one just yet. I think if you migrate lower down into back to school, it will probably be in the apparel space. I frankly dont know. Its a little bit early in that area. Well have to wait a few more weeks. Thanks, everybody. Thanks, courtney. See you all. Appreciate it. Speaking of retailers, did you know this is the part of the story that scares me did you know that many of them are tracking you while you shop . Its done through your cell phone. Well debate if this is an invasion of privacy or a chance to get personalized deals. Thats coming up. Take a short break here on the closing bell. Bill . Yes, we will. Courtney was just telling me how theyve been tracking us for years at the retailers. Well get to that in a few minutes. Dow up 31 points. Dow, s p, any positive close, that would be an alltime high. And after plunging 5 on friday due to a fire on a dreamliner jet in london, boeing is leading the dow to another record close today. Up next, phil lebeau explaining why the stock is on such a roll, back in a moment. Er, you or your car . I would say my car. Probably the car. Cause as you get older you start breaking down. I love my car. I want to take care of it. I have a bad wheel i must say. My car is running quite well. Keep your car healthy with the works. 29. 95 or less after 10 mailin rebate at your participating ford dealer. So you gotta take care of yourself . Yes you do. You gotta take care of your baby . 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Their quick trade bar lets my account follow me online so i can react in realtime. Plus, my local scottrade office is there to help. Because they know i dont trade like everybody. I trade like me. Im with scottrade. announcer scottrade. Voted best Investment Services company. Were about ten minutes away from the dow and s ps thirdstraight record close, assuming these things hold. Josh lipton. Reporter bill, heading into the close, lets review what flashed green and red. In the s p 500, your leaders include first solar. And can you pin that on china, which raised its 2015 target for solar power capacity. And, also, la czar, reports calling this a net positive for the entire sector for solar. Now up more than 60 so far this year. Tiffany also heading higher. Analysts upgrading it to a buy. Their price target is 92 bucks, saying theyre looking for samestore sales growth in the americas to pick up and gross margin to get a lift from falling precious metal costs. Your worst performer in the benchmark gauge, that would be alex onpharmaceuticals. Some are worried roachs bid. Homebuilders are also not working today. Dr horton, lennar, pulte posted nice gains on friday but heading lower in todays trade. The sector has been under pressure on concerns about rising interest rates. Among the blue chips, boeing leading the charge. Fell nearly 5 on friday after reports of that 787 fire in london. Today, though, its your top performer in the dow. Up today, up some 40 so far this year. Maria, back to you. All right, josh, thank you so much. We want to get the latest on Boeings Dreamliner fire in london. Phil has the story. Reporter maria, were probably still a couple of days before the u. K. Investigators pinpoint a cause for the fire that happened on friday. But we do know today from talking with a number of sources that increasingly investigators are focused on the role of the planes emergency locator transmitter. Thats one of a number of components located near the rear of the airplane. Now, in the 787, the elt is manufactured by honeywell. We should stress here theyre not saying the elt is the cause of the fire. They are simply looking into what role the fire or the elt had with the fire. We reached out to honeywell. It says its been invited to join the investigation. A spokesperson tells, weve sent tektsal experts to assist with the investigation. However, at this time, it is premature to speculate on the cause of the fire. We will continue to work closely with boeing and the ntsb and to await the analysis and output of the investigation before drawing any conclusions. Take a look at shares of honeywell. After we first made the report, and there were other reports the middle of the day, thats where you saw the selloff in the shares. They have started to come back. I want to look at shares of boeing going back to friday from the very first report where it dipped all the way down to 98, 99. Maria, go from there all the way now, the stock has come back 7 . Increasingly, people are looking at this and saying it does not look like it was a systemic issue at the root of the fire. Still, were a couple of days before a determination is likely to come from investigators in britain. Maria, back to you. What resiliency there, phil. Thank you. One of the guys on the floor told me on friday, this was off camera, he said, i think buying being able to buy boeing under 100 is a steal. Good call. You know who you are out there. And the flow is there. These are longterm investors, and theyve got confidence in the company. So we see these, you know, nearterm issues that obviously are terrible issues for the company, but the stock keeps rebounding. It feels like people want to own boeing. Exactly. In the final stretch of trading. About 11 minutes before the closing bell. Look at dow industrials. Up 26 points in record territory once again. Could be the Third Straight record close, as a matter of fact. When we come back, two market experts tell us why how much higher the rally can go. To treat my low testosterone, my doctor and i went with axiron, the only underarm low t treatment. Axiron can restore t levels to normal in about 2 weeks in most men. Axiron is not for use in women or anyone younger than 18 or men with prostate or Breast Cancer. Women, especially those who are or who may become pregnant and children should avoid contact where axiron is applied as unexpected signs of puberty in children or changes in body hair or increased acne in women may occur. Report these symptoms to your doctor. Tell your doctor about all medical conditions and medications. Serious side effects could include increased risk of prostate cancer; worsening prostate symptoms; decreased sperm count; ankle, feet or body swelling; enlarged or painful breasts; problems breathing while sleeping; and blood clots in the legs. Common side effects include skin redness or irritation where applied, increased red blood cell count, headache, diarrhea, vomiting, and increase in psa. Ask your doctor about the only underarm low t treatment, axiron. Before their gift helped preserve the point. Before a credit solution was used to expand their business. Before trusts were created for their grandkids educations. They chose a partner to help manage their wealth. One whose insights, solutions, and approach have been relied on for over 200 years. Thats the value of trusted connections. Thats u. S. Trust. Welcome back. Were on the close of the dow. Joining us now to break it down is chris from u. S. Trust. Bills at the headquarters today. Chris, how does this market feel to you . Once again, recordsetting material here. Does this surprise you . You know, id like to say, yes. It really doesnt. What surprises me is a little bit of the lateness of it after that 5 pullback. Were starting to see Money Movement at the High Net Worth level and even the lower level, seeing money from fixed income and cash. Theres a consistency to it, which means it has legs. Its driven by a great normalization of yields, rates, multiples and flows. Bill . I have jonathan here. Youre a technician. Youre skeptical of this rally weve seen here. Why . Well, in the short term, theres a couple of reasons to just think were due for a little bit of a pause here. One of the things we look at is the percentage, a way of certain indexes are from the moving average. Russell 2000 is now 15 above. Its the most weve seen since april 2011. And if you think about it, the nasdaq 100, for instance, has been up today would be the 14th day in a row. We go back to 1990, the longest streak, since 1990. So you think its due. Its due for a little bit of a pause. A little bit of a pause. I should tell you, art tells me now that the money has moved to the sell side in terms of the end balances as we approach the close. He said 125 million now for sale. Okay. You mentioned high networth clients are, in fact, moving money. Where are they moving money . Wheres the conviction from your audience . The conviction is back into equities now. As we mentioned in weeks past, it was a little bit from cash into equities. Now from fixed income into equities. The great normalization of yields and rates is on. This takes time. That means investor flows will be consistent in our opinion into the equity markets, and thats why youre seeing strategists across the globe raise their allocations or raise their targets. How do you do it . When you say equities, what groups . Financials and technicals are the great beneficiaries. As rates normalize, they benefit the most. And cyclicals across the board to match the defensive movement we saw earlier. For you its sell oil and buy gold. Yeah. You think oil has peaked . We had a great run. I think near term, its probably due for consolidation when you look at the positioning, i think a lot of traders got too long oil, too short gold, sow might see a reversion back to that. Its interesting that you say that about oil. Do you think, chris, oil becomes an issue for equities . Jonathans over there at headquarters saying you have to buy oil, you also want i mean, gold is a story now. Do you think that oil above 100 a barrel is going to be an issue for this market . I really dont. I think its a catchup from lost time thats going on. Commodities in general are pressured from the stronger dollar. Thats going to maintain itself pretty much throughout the year. Lets have that question a little bit posed as we head into 2014 when you start to see the economic sensitives rise a little bit more, because pmis are rising around the world. That will feed into the overall economy. So that will be muted effect from the rise in the price of oil. All right. Bill . Thanks, guys. Jonathan, good to see you. Thank you very much for joining us. Come back when you can stay longer. See you later. Thanks, chris, very much. Well come back with the closing countdown. Then, after the bell, its not just surveillance cameras watching you at the mall. Some retailers are tracking your every move through your cell phone. Do we have any expectation of privacy in public anymore . Thats coming up. Thats me. I made you something. I made you something, too. See you next summer. [ male announcer ] get exceptional values on the highest quality cars at the summer of audi sales event. [ whirring ] [ dog barks ] i want to treat more dogs. Our Business Needs more cases. [ male announcer ] where do you want to take your business . I need help selling art. 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I mean, its been an incredible volatile period for that company. Peter is on the floor. I know youre a disciple like i am, and he was telling maria on friday he likes the skepticism thats out there as the market sets new highs. He thinks it goes higher because of that. Do you agree . Yes, i do, bill. Its funny you even mentioned ralph, because i was going to say the exact same thing. I am an accolite, if thats the right word. I listen to him. I believe that this market has another 5 to 10 left in it. And i have no problem putting the costa family fortune back into the market or continue to put it into the market. Oh, dear lord. Yes. I dont know if mrs. Costa knows about that. What groups are you going to put in there, very quickly . Well, im going to listen to ralph again. You staurt putting into smallcap stocks, very Good Companies in the smallcap, the midcap indexes. I think theres some room on the upside with them. [ bell ringing ] and i think you cant lose. Very good. Thanks, peter. See you. We hope you dont lose. The dow is finishing higher, alltime highs. Heres maria with the second hour of the closing bell. Ill see you tomorrow. And it is 4 00 on wall street. Do you know where your money is . Hi, everybody. Welcome back to the closing bell. Im maria bartiromo. This market closing at another record high. Thirdstraight session of new records for the dow and the s p 500. Take a look at how were settling out on the street. At the end of the day, we had selling of consumer names. Thats where the selling was happening, going into the close today. Thats why this market did end off of the best levels of the afternoon. Nonetheless, at an alltime high. The dow at 15,485, a new closing high for the industrial average, up 21 points on the session