The yield on the ten year in the last week is up about 15 basis points. Thats not even the peak. We were at 267, 268 early on. So were getting a swift market response to all of this strong jobs data today. The question is whether well close above 17,000 here, bill, and right now it looks like weve got a comfortable margin. Lets look across the markets. Dow is up. Session highs, 92 points. Again, only an hour to go until the close here. The nasdaq meanwhile, out performer this week up almost 2 . Its turning in a decent performance adding 23, another half percent. Finally the s p 500, at levels we have not seen for this index. Up almost 10 points. 1984, just 15 points away from 2000. Talk about this important trading day. Monica madea, part of our closing bell exchange. With seventh capital. John manly and ben willis from princeton, Keith Fitzgerald said it would be like this from Money Map Press and our own rick san telly. Cant wait to talk bonds with him in a minute. Is this a green light to go higher or could it be resistance here . What do you think . A green light to go higher and by the end of the year without a doubt. Every professional trader continues to look for some sort of correction. The fact of the matter is the Economic Data continues to print on a positive note, which means your money should be in the stock market, not in the bond market. Its been a very slow bleed, if you will, and the Central Banks function will be managing that deflating that bubble they created in the bond market. Do you agree, monica . Especially as it looks like this stretch of job creation year on year is the strongest since 2006, which is neither encouraging or a sign perhaps the best of times are behind us . The tricky thing about a market, the pendulum swings hard in both directions. Jobs numbers positive, in that were seeing consistency. Five months of 200,000plus jobs. At the same token, creating more parttime jobs than fulltime jobs. We still have 275,000 workers who are forced into working part time, and while the longterm unemployment number is coming down, its coming down for the wrong reasons. Youre finding people are giving up looking versus actually getting absorbed into the market. What do you recommend to clients now . Do you awe dpree with what ben said . Stocks are the pla is to be . We take a longterm approach and with a longterm approach you keep study with your portfolio. Were in a lot of alternatives now. Okay. Its time to think about diversifying, because i think the biggest concern for all investors is whats going to happen when the fed funds rate starts to move up and Interest Rates move up . And thats going to really have a whack to all different types. Asset classes. Keith fitzgerald, youve been among those who said were going to keep going higher yet go that much longer without a correction of some kind of 10 or more. Are we setting ourselves up for something even more painful down the road, because we havent had a correction in over two years . You know, a, thanks for remembering that, and, b, yes. I think we probably are. The pendulum swings violently on these types of massive market moves but bringing money off the sidelines. The fed is telegraphing what it wants to do. Never mind its making up the numbers. Jobs composition doesnt look right and large enough to fall over them or through them. The fact of the matter is well, theyre not making them up, but making them up as we go along. Theyre along for the ride. Strategy as it goes along . Turning into a nation of burger flippers as opposed to career builder. That bothers me. Cracks im concerned about. Longer term, Quality Companies never go out of style. Rebalancing is what you need to do now and stay in for just a while longer. Carlos gutierrez, john manly, became commerce secretary, started driving a cocacola truck. You can start as a fast food worker and work your way up in the countant you . I started at mcdonalds. 2 an hour and loved it. How much was a hamburger then . Less than 2. Tell you that. Could eat all i wanted, as you can tell. Things are great. America is doing what it should do. Expanding. Its international, normal. Rates will only go up if it doesnt slow down the economy. The fed wants to make sure things are going better. The unemployment number, the employment report was perfect, not too hot, not too cold. Absolutely perfect. Rick santelli, here we are within the trading range for the tenyear yield, been in quite a while but into the upper range there. Do you suspect well stape in the range or could we start to finally move higher here . Tell you what, i think the bond message today is very compelling. Believe me it wasnt a bad number today. The guests said this is wrong, thats wrong. Totally correct. All things considered, the improvement has been rather substantial, even with all the warts. Up to close to 267. You see the chart, were at 264. The most important chart is the one that starts in may, because may 12th to may 28th, the only levels you need to Pay Attention to. 266 close from the 12th. If we dont close above that today, on a day where all the impetus, all the nervousness is that you should be selling on strong data in front of holiday week, to me tells me that the treasury market is still bugged by something. Now, if you look at booms versus tens, what its not bugged by, a fresh 15year wide. On a notional basis, our rates are higher, but on a real basis, the reason were not going through, i dont any that the investors that represent the bond market believe janet yellen and company are going to be true to the type of data theyre seeing, and they ought to be, because when you hear macroprudential what that is saying, theyre going to ignore the data and not adjust monetary policy, and think theyre going to pick any of these bubbles with regulation, when 100 years of history dictate theyve never seen anything in the front windshield that they address before bad things happen. Monica, why i found that your comment about alternative assets, interesting here. Are you referring to things like gold, commodities, where we have seen a lot of inflows lately or talking about more Asset Classes like real estate, commercial real estate . That sort of thing . Were beyond the gold im wearing. Were active in real estate and so we focus on very specific strategies and, again, i dont think you can take a broad approach to this. You have to understand the asset class, understand the geography. One point i feel no ones made is, the fed as much as wed like to think theyre in control, theyre not in control. A business professor said the fed has a tricky job of driving a car where every turn is only felt 20 minutes later. I think by the way, the point everybodys making. Theyre not necessarily in control. They affect the psyche of investors. If they dont do the right thing with these better data points, theyre going to send a message of disbelief and pessimism. And thats a dangerous precedent, because when the pendulum swings in the other direction, naturally the hope is going to be that, gee, the government stepped in before. Lets step in again. Thats the wrong message, i think, to reinforce this. We need to concentrate on the fundamentals of investing and getting ahead with the solid underpinnings of the economy. Jpmorgan, changed their idea after the jobs report came out about when they think the fed will actually start to raise Interest Rates. They now think it could happen right around this time next year. Do you agree . And what do you think the markets going to do with all that . I do agree with them. As a matter of fact think it may happen sooner. My economics professors couldnt stand the fact that i dont believe economics is in fact the science. Its an art form. What were watching, janet yellen, the peoples bank of china, mr. Draghi, theyre executing an art form. Created asset bubbles by the stimulation that theyve created over the last six, eight yearened and its their job to try and take that piece of artwork back down. Thats what were facing. Whether you want to look at it through the front windshield or rear view mirror, fact of the matter, we will be beholden. I continue to call it the mattress effect. Money will sit with the people making the rules about the money until we get a clearer picture in the front windshield what theyre looking at and how theyre affect our ability to invest. John manly, against this back drop. Why werent you concerned were in an asset ubl bubble leer . Ill worry about tomorrow tomorrow. Look at the valuation on the market. The markets around 15. 5 times forward earnings. Hardly a bubble. Two weeks ago the people were calling for the end of the world. I mean it was never good enough. Now its too good. The simple fact, we can make money as the economy goes from okay to good. We made a lot when it went from terrible to bad and bad to ak, but okay to good makes money, too, and i dont see those excesses. 15 1 2 times is not are there sectors to move into making a transition from okay to good . I think technology. Look at earnings. In the Technology Sector taking off. Some of the high multiple stocks hit. I think you look at whats going on in the Energy Sectors oooey think were going to see a lot more development in petroleum over the neglect several years. Service companies should do well, oil companies. Rick i know you cannot wait, you think that the fed cant raise rates soon enough right now. Called liftoff, in their vernacular. What do you talk about on the floor there . When do you think theyre going to start raising rates . Well, you know, i know people like to look at fed funds, but when youre beginning a cycle, fed funds dont give you an accurate read. Down here, many think shes going to wait too long. Even though they all agree the markets more important than the fed, at this major turning point, 5 1 2 years after a crisis, i think there is much greater risk that they drag their feet, they should be more nimble. They shouldnt fall in love with an old strategy, because as any trader as a guest knows, when you fall in love with an old strategy in a current market, they take you to the woodshed. Leave it there for now. On that point, everybody can acknowledge. Thank you all and have a great fourth of july weekend. 50 minutes to go here, bill. Looks like its going to be dow 17 070. Were in the most important hour of the trading day. In fact we are. Is the employment picture everything its cracked up to be . Two Top Economists weighing in on that coming up here. Also ahead, happy july 4th from expensive fireworks displays, barbecues, americans spend billions during the independence holiday, well, if its not raining. On that note, check out this view of hurricane arthur from space. The storm could dampen spending up and down the east coast, or at least shift it around. A special report on where its heading, next. But what if you could see more of what you wanted to know . With fidelitys new active trader pro investing platform, the information thats important to you is all in one place, so finding more insight is easier. Its your idea powered by active trader pro. Another way fidelity gives you a more powerful investing experience. Call our specialists today to get up and running. Welcome back. A strong jobs report this morning has meant a strong stock market, and we are above 17,000 on the dow for the first time in history. Looks like well close above that number. The dows up 95 points now. Look at all three major averages. Its an evenly spaced out rally today. Each of the averages there, dow, s p and nasdaq up half a percent. Nobodys standing out or lagging at this point. Interesting heading towards the close. Kelly . Broad based gains, bill, as you say. Courtney reagan is covering it. Kelly, which movers helped get us where we are today. Pet p petsmart. Tarking to management and shareholders an a possible sale of the kwi. Walgreen and rite aid. And lou lou lululemon, and abo taking the yoga gearmaker private. Among other options im told. On the flip sewed, mq mobile, plummeting, will need to expand the scope of its audit. Market cap of 265 million dollars. End with Staffing Company manpower group, kelly services, co cornferry, moving higher as the employment picture brightens. Back to you. Thank you, courtney. Jobs a hot topic now, obviously given the new numbers that came out called a blowout report. But was it . Lets ask an economist with the economist, and a cnbc contributor and president of ceo of lasalle network, a chicagobased staffing and recruiting firm. Welcome to you both. Greg, you know, a lot of people are focusing on a big increase in parttime work offsetting an increase in fulltime work. How concerned should we be . Not very concerned. The last year or two, parttime numbers bounced up and down, not trend. Betser to look at numbers on the employment side of the report showing that total hours worked, they rose around a 4 annual rate in the Second Quarter. Thats the fastest rate of growth in the last four or five years. I think we are not just seeing job growth but seeing people with jobs getting lots of hours to work. Good for income. Good for spending. But, kelly, i would add, negative for productivity growth. In the same time were having hours worked going up so much, weve seen output doing basically nothing. Thats one negative side to this report. Good point. Gdp and jobs may be at odds there. Tom, watching the numbers. The what, youre watching the where. Where are the jobs . You call it uneven. Geographically speaking . Yes. I think we really need to look across the country and eventually we have to get there. Whats going on in chicago, new york, miami, l. A. Is different than going on in des moines, omaha, nashville, tennessee. Weve got to look at this regionally. Also saying, people get upset that parttime jobs are going up, but the fact of the matter is, theres not a direct correlation if there were fewer parttime jobs there would be more fulltime jobs. We have to be thankful for what we have pts stock market is doing great. We need to focus on the skips gap. The question of sustainability is coming up in markets today. The ten Year Interest Rate reacted sharply at first but come off a little. Are the job gains sustainable . It goes to your point of productivity . Yeah. The worst productivity, the faster jobs have to grow to meet the same level of output. Thats one of the factor gauss going on here. Job growth strong but output growth not. That tells us potential growth is weaker. Output gap might be smaller. That might mean the fed has to moor more swiftly or move up the federal funds rate maybe by three months. 6. 085 unrounded. A big downward move again. While that might be for the wrong reasons it doesnt mean the fed shouldnt respond . Absolutely. On unemployment at the level they expected to reach by the end of this year. Also seen inflation moving up a little bit. All of these things together suggest that the fed might need to move up a little bit the data which it begins to tighten. A couple aftcaveats. Wage inflation is weak. One giving the fed pause determining the data. This stuff is volatile. I wouldnt assume the new trend is 285,000 per month. It could fall back easily in the months to come. Tom, do you agree . What about the issue of quality of the jobs, how many parttime workers added to pay rolls this time around . Give us a sense of the quality of this jobs report this morning . Not just the quantity. I think quality is the issue. One of your earlier guests said, he started working at mcdonalds. The fact of the matter, everybody doesnt come into a 60,000, 80,000, or 100,000 a year job. Were in the mindset of the recession. The jobs are there. Seeing a lot of people starting out at 3,00,000, a good career path to make 40,000 or more a year. I disagree from the statement kelly made. If unemployment drops its a good reason. The fact of the matter, trying to make sure we have longterm employment. The argument, if you shrink the work force, unemployment might look better but you want the most people working in this country that you possibly can have. Otherwise, longterm growth, long toeterm productivity look much weaker. We need to look at that. Go ahead. One positive thing, if you could call it that. The Participation Rate actually did not go down in june from may. Stable at around 62. 8 . Right. Thats a low level and theyll be expected to drop as far as it has. Pulling up the camera a bit. Weve had zero labor force grow in the last year. To your point, kelly, notwithstanding, we should be grateful more are going back to work. Lack of growth and underlying supply of workers. Greg, though, are we being too impatient about this recovery . Lets face it, were coming of you a of a huge recession, a horrible financial debacle from 08 and 09. Is this recovery going to be differ as a result comparing it to past rovies out of recessions here . Well, the jury is already in on that one, bill, and it has been slower and worse. I dont think were being impatient. We have each year, the last four, five years expected a pickup in growth in the 3 level that never happened. I feel its about time we started to get a run of upside surprises like this. I would add the following caution, that im not about to start, like, popping the champaign corks based on these last two or three months numbers. Given on weeks of factory output numbers, the retail fail side, i am not sure we can sustain job growth at the current level. Tom, last word . Weve got to be a little more optimistic. Unemployments gone from 10 to a little over 6 and not necessarily due to the administration at all but the fact of the matter, Companies Making more profits and hire whoing people and people out of work a long time, they need to realize and get their skills up to par or accept less money, but the economy is doing better. Thank you for that perspective this afternoon. Have a great weekend. Thanks for having me. About 40 minutes to go here. Stocks near the session highs. Dows up almost 100 points. About 9 now. 1765s level and the s p we dont mean to neglect, also at a Historic Place here. 1984, within 15 points of 2000. And the yield on the ten year sharply higher as a result as well. Just ahead, the latest on what is now hurricane arthur, and its storm track. We find out if you should cancel the barbecue plans for tomorrow and get tickets to a movie or a museum instead. And later, ill speak with the executive producer of one of the big evidence fireworks shows in the country. The macys fireworks scheduled to take place over, nos east river, well, if arthur cooperates. Well be right book. Welcome back. Where we stand with 35 minutes left to go on the shortedened trading session. Dow jones industrial adding 94 points. All indexes up half a percent on what has ban strong week for them, bill. Yep. Meantime, hurricane arthur is whipping up the east coast. The timing could not be worse. Its just in time, of course, for the july 4th weekend. Whether channels Raegan Medgie joins us with the latest track. Raegan . Reporter funny they said whipping. We see the wind increasing. Looking at a light posted. Looks shaky. A live look at the beach here in north carolina. You see a lot of people, looking a the ocean. Not going in the ocean. Why . Because we got those strong winds and heavy rains, combine that together, dangerous ocean currents, basically those harsh rip currents. Now well have the camera go over this way. You see the guard stand, the lifeguard stand, thats empty at this point, because the lifeguards have been pulled because conditions arent favorable out there. Theyre trying to make sure and going to be roving patrols in their vehicles up and down the shore, making sure basically the families here for the big Holiday Weekend where all the business is basically depend, trying to make sure the families just dont go in the ocean, because at this point, those rip currents could basically pull you out. So what can we expect for the rest of the day . As the wind starts to gear up, this storms going to get worse going into the evening. Right now kind of in the beginning of the system. Basically were taking our eye to the skies, making sure everything is well here and, of course, there is no evacuation here, but if you go to the outer banks, where its getting a lot worse. There has already been a mandatory evacuation for hatteras island. For now in Wrightsville Beach, keeping our eye to the sky and give you the latest and greatest information we possibly can. Back to you. Raegan, thank you. Do you have a sense whether this storm is in fact bearing out towards the atlantic as it moves up the coast at this point . Reporter at this point, were not sure. Were being told its a category 2 hurricane when it reaches land. We dont know at this point. We know in the weather world, things can change on a dime. Change in seconds, hoar, minutes. We dont know. At this point, the rains now is starting to pick up. We can expect it will be a very eventful day. Raegan medgie on Wrightsville Beach in north carolina. The president making comments moments ago on todays strong jobs report from ann incubator plant in washington. Lets listen in. This is an incubator for all sorts of tech startups. A lot of them focused on social change issues, on education, on health care, and so weve got a range of entrepreneurs who are trying to figure out how can we do well by doing good in many cases, and i just have to say that the young people and some not so young people that i spoke to, coming from a wide range of backgrounds. We had former army rangers. We had lawyers. We had former hr folks. Transportation experts, engineers. All of them had the kinds of energy and drive and creativity and innovation that has been the hallmark of the american economy. And part of the reason i want to come here today is to focus on whats happened to the u. S. Economy over the last several months and last several years. We just got a jobs report today showing that weve now seen the fastest job growth in the United States in the first half of the year since 1999. [ cheers and applause ] right . So thats this is also the first time weve seen five consecutive months of job growth over 200,000 since 1999. [ applause ] and and weve seen the quickest drop in unemployment in 30 years. So it gives you a sense that the economy has built momentum, that we are making progress. Weve now seen almost 10 million jobs created over the course of the last 52 months, and it should be a useful reminder to people all across the country that given where we started back in 2008, we have made enormous strides, thanks to the incredible hard work of the American People and american businesses that have been out there competing, getting smarter, getting more effective, and its making a difference all across the country. Now, what we also know is, as much progress has been made, theres still folks out there who are struggling. We still have not seen as much increase in income and wages as wed like to see. A lot of folks are still digging themselves out of challenges that arose out of the great recession. Historically, financial crises take a longer time to recover from. Weve done better than the vast majority of other countries over the last five year, but that drag has still meant a lot of hardship for a lot of folks. And so its really important for us to understand that we could be making Even Stronger progress, growing even more jobs. We could be creating even more Business Opportunities for smart, talented folks like these, if those of us here in washington were focused on them, focused on you, the American People, rather than focused on politics. And ive given a number of examples over the last several months of things we know would work, if we are investing in rebuilding our infrastructure. That doesnt just put construction workers back to work it puts engineers back to work, landscapers, architects back to work, folks who are manufacturing, concrete or steel back to work. It make as difference. And it has huge ripple effects all across the economy. If we are serious about increasing the minimum wage, that puts more money in the pockets of people who are most likely to spend it. They, in turn, are most likely to hire more people, because they now have more customers who are frequenting their businesses. If we are making sure that theres equal pay for equal work, thats helping families all across the country. If were focus and making sure that child care is accessible and affordable and high quality, that frees up a whole bunch of potential entrepreneurs as well as people who are just going to work every single day, doing the right thing, being responsible, but often are hampered by difficult situations in terms of trying to manage parenting, and families. And so there are just a series of specific things we can do right now, many of them im doing on my own, because we have the Administrative Authority to do it, but some of them we cant do, without congress. We cant fix a broken immigration system that would allow incredibly talented folks who want to start businesses here and create jobs here in the United States, would allow them to stay and make those investments. Thats something that we need congress to help us on. Were not going to be able to were not going to be able to to fund the Highway Trust Fund and to ramp up our investment in infrastructure without acts of congress. So my hope is that the American People look at todays news and understand that in fact we are making strides. We have not seen more consistent job growth since the 90s, but we can make even more progress, if congress is willing to work with my administration, and to set politics aside, at least occasionally. Which i know it what the American People are urgently looking for. Its a sort of economic patriotism, where you say to yourself, how is it that we can start rebuilding this country to make sure that all of the young people who are here, but their kids and their grandkids are going to be able to enjoy the same incredible opportunities that this country offers as we have . Thats our job. Thats what we should be focused on. And its worth remembering as we go into independence day. Thanks, everybody. Appreciate it. Thanks. President talking job Growth Strategies at that incubator in washington especially in the Small Business sector on a day when the jobs numbers were very good. A gain of 281,000 in june, and the Unemployment Rate down to 6. 1 . Of course, that has powered the stock market higher, kelly evans. The dow up sharply. Above 17,000, we will make history today. We were at 16,000, what . Seven months ago, right . Crossing a millennial mark every seven months or so. Those werent the comments that has wall street talking about. Well talk to someone who had an interview with the president and wasnt happy about the behavior of bankers. As you can see there, trying to encourage job growth across the country. More on these markets on this record day when we come right back. Who dont have electricity and i just figured that its time i do something about it. What were doing right now, along with ibm, is to actually transfer data through a satellite from our wind farms directly onto the cloud. I think we could create a far more efficient system across the whole network where we could actually draw down different kinds of energy based on when its needed by the consumer. A smarter Energy System is made with the ibm cloud. He cadillac summer collection is here. During the cadillac summers best event, lease this 2014 ats for around 299 a month and make this the summer of style. Welcome back. Despite todays dow highs, start with the markets. 17071. Up half a 1 and were looking, bim, at a market with fairly consistent gains across the board. Up about a half percent as bonds sell off today and push the yield on the ten year to 265. Pretty strong market response here today. Yeah. Despite the highs, oppenheimers saying investors have to look at the whole market picture. And here with chief strategist. You sound skeptical . Make cautious . Thats the word i should use. Is that right . Not exactly. Actually, im feeling really good about it. Coming up on our 2014 target on the s p 500. Which we implemented last november. So seeing the dow at 17,000 looks to us like a preconfirmation of whats up ahead for the s p. And brian reynolds, people will start to talk about the fed raising rates sooner than expected. Will higher rates mean lights out for this market . No. It will actually make the credit boom more intense. Financial engineering driven by this credit boom in place since 2009. If you look at the history of credit booms, the 91 through 2001, 03 through 071, the credit boom comes after rates go up. I cant wait for that day. Its counter tuti tuitive. Would you believe they could rally from here . Certainly would, kelly. We have a track calmed the mayan temple effect showing the last 17 times that the fed raised the fed funds rate. Racing 25 bips at time. The market went up the whole time during that period and also went up after the fed stopped raising rates. When the market went down was when the fed starting cutting rates. Are you ready for that . Bill . Getting sweaty palms. Two super bowls here all of a sudden. Brian, is there anything that could cause, finally, to bring a 10 correction to this market here . Probably not. Last month alone we saw 30 major Pension Funds vote to put more money into the credit market. That money hasnt even hit the market yet, and this week, marked the start of the fiscal year for many states and cities. Taxes went up on july 1 in california. Theyre going to go up eventually 14 of pay rolls for teachers to help fund the teachers pension, and the same thing is going to happen next year with the main california pension. So that money is still yet to hit the credit market. So pensions are playing catchup here what youre saying . Theyre trying to make 7. 5 in a sub1 world. No way to do that forever, but taking in more none put into the credit market, meaning this cycle probably has another three or four years to go before it ends badly. Goodness. Last question for you against the backdrop, if 2014 was your target this year and starting to think perhaps bigger and stronger, what ultimately do you think the market account do . Well have to see, kelly. The next thing to look at, when we get to the earnings reporting season coming up that starts next week. In addition to that we cant help but feel in the interim, the market will always be subject to some kind of a catalyst that will get it to take a mayor chaircut. In the back of your mind, no sense of how much longer and higher this could go . We like to think a bull market could run several more years. Looking ed ahead, the next 12 months look good. We expect at some point we have to take a breather. That breather, everybodys holding their breath for it. Thank you, guys. Thanks, gentlemen. Have a great weekend. Heading towards the close. A reminder, the market is about to close. Closing early because of the july 4th holiday tomorrow, when the markets will not be open at all here in the United States. And right now the dows up 88 points and it looks like well close above 17,000 for the first time, kelly. Well have more on this historic run ahead. Noted technical analyst, explaining why he does not see signs of a major top yet and will make his case coming up. Also, up next, seema mody gets patriotic looking at companies that derived the bulk of their sales right here in the good ole u. S. Of a. Outperforming the broader market. Thats coming up. And youre talking to your rheumatologist about a biologic. This is humira. This is humira helping to relieve my pain. This is humira helping me lay the groundwork. This is humira helping to protect my joints from further damage. Doctors have been prescribing humira for ten years. Humira works by targeting and helping to block a specific source of inflammation that contributes to ra symptoms. Humira is proven to help relieve pain and stop further joint damage in many adults. Humira can lower your ability to fight infections, including tuberculosis. Serious, sometimes fatal events, such as infections, lymphoma, or other types of cancer, have happened. Blood, liver and nervous system problems, serious allergic reactions, and new or worsening Heart Failure have occurred. Before starting humira, your doctor should test you for tb. Ask your doctor if you live in or have been to a region where certain fungal infections are common. Tell your doctor if you have had tb, hepatitis b, are prone to infections, or have symptoms such as fever, fatigue, cough, or sores. You should not start humira if you have any kind of infection. Take the next step. Talk to your doctor. This is humira at work. [ girl ] my mom, she makes underwater fans that are powered by the moon. She can print amazing things, right from her computer. [ whirring ] [ train whistle blows ] she makes trains that are friends with trees. My mom works at ge. Welcome back. 15 minutes to go here in an upward move in treasury rates after the stronger than expected jobs report this morning. Not doing much to halt the rally and stocks continuing um another half percent in a week the major indexes are up in the range of 1 to 2 and the dow looks like it will close, dont want to jinx it, above 17k. And only 14 minutes left in the trading session, if youre just joining us, were heading towards the close. A timely story for the fourth of july. Stocks that generate a monajori of their income in the u. S. , continues. Seema mody . Companies that make money right here at home on average out pacing gains on the s p 500. Up about 8 . That data according to thomson reuters. Telecom stocks playing a major role. Century link, windstream, Frontier Communications making 100 of their sales in the u. S. , providing a lift to the index. Other notable winners, forest labs, Mountain Green coffee, pepco holding, Southwest Airlines and exlons. Shes Companies Make most of their sales in the u. S. , all up better than 30 so far this year. In terms of other u. S. Stocks continuing to outperform Going Forward, betting on industrials telling me continued recovery in the u. S. S, jobs, manufacturing capacity coming back to the u. S. Helping names. Like norfolk, southern and csx moving to the upside. Not all experts agree. From bank of America Merrill lynch prefers high quality multinationals, cheaper, unloved and diversified revenue streams. Back to you. Seema, thanks. 13 minutes left. The dow up 86 points. A healthy gain following this mornings strong jobs reports. Coming up, the financials lagging the market rally this year. Also, wait until you hear what president obama just said that could make it even harder for bank stocks to catch up, and the person the president said it to will be here. Well be right back. With fidelitys guaranteed onesecond trade execution, we route your order to up to 75 Market Centers to look for the best possible price, maybe even better than you expected. Its all part of our goal to execute your trade in one second. Im derrick chan of fidelity investments. Our onesecond trade execution is one more innovative reason serious investors are choosing fidelity. Call or click to open your fidelity account today. Welcome back. Were above 17,000 for the First Time Ever on the industrial average. Joins us, our friend independent investment consultant, i dont mean to be a wet blanket, but everybody is bullish, it seems. I remember an interview i did years ago in miami when the real estate boom was going on, and agents said buy florida real estate, because prices always go up. They dont always go up. We know that. You need to take a dose of reality even when the dow gets above a new lineal link. I do, definitely. The market is hitting on several cylinders, house prices, pending home sales, new home sales, existing home seams. You have monday taken stimulus, ism manufacturing, you have the philly fed, the chaub pmi, the entire state fed, all of those, bill, are positive things, to me the things you have to watch out for, the Second Quarter, lets see wheres the beef . Show me the money. You need retail sales. Confidence is there, bill, but people havent been buying, retail sales, you saw that personal consumption number that came in. Up only two tenths of a , kind of a disappointment. We want to see the profits, 90some companies now have given negative guidance, guiding downward on the estimates. Wheres the revenues . , where is the profits . Interestingly enough, over half of the s p 500s retches are outside the United States. That means the condition of china, the condition of our emerges markets, the brazils of the world, okay . Southeast asia, those are very, very important, so i think you want to keep an eye on chinas numbers. They came in a tough better this week, so right now the markets hitting on 9 or 10 of the 12 cylinders. Thats why its lifting. Now, volatility is below is 1. You pointed out. It is a sign for those investors who are so inclined to put prices and other protectionary strategies on the cheap side. Its as if they were basically offering Home Insurance at very low rates. You hope not to collect on it, but if you had to buy some, its very cheap. Stay right there, bill. Well come back with the closing countdown. Still above 17 thousands. It looks like well make history. The market is closing in just a few minutes because of the fourth of july holiday. Well come with the closing yountdown in just a moment the cadillac summer collection is here. During the cadillac summers best event, lease this all new 2014 cts for around 459 a month or purchase with 0 apr and make this the summer of style. But parallel parking isnt one you do a lof them. Ings great. Youre either too far from the curb. Or too close to other cars. Its just a matter of time until you rip some guys bumper off. So, here are your choices take the bus. Or get Liberty Mutual insurance. For drivers with accident forgiveness, Liberty Mutual wont raise your rates due to your first accident. 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Get medical help right away if you have symptoms of a heart attack or stroke. Use caution when driving or operating machinery. Common side effects include nausea, trouble sleeping and unusual dreams. I did not know what it was like to be a nonsmoker. But i do now. Ask your doctor if chantix is right for you. Who found a magic seashell. It told him what was happening on the Trading Floor in real time. The shell brought him great fame. But then, one day, he noticed that everybody could have a magic seashell. [ indistinct talking ] [ male announcer ] right there in their Trading Platform. So the magic shell went back to being a. Shell. Get live squawks right in your Trading Platform with thinkorswim from td ameritrade. About three and a half minutes left here as we close things out on a holiday shortened day. At the top of the hour, it looks like we are poised to close with a record as we close above 17,000 level for the First Time Ever. The industrial average pretty much off its highs of the day. Weve lost 30 of those points, but still at 17,041, even as yield on the tenyear goes higher. Back with david darst. How do you gauge the quality of this rally today, robert . Its about as good as it gets. We have a day here where the number we were anticipating was strong, stronger than expected, but not so strong that it freaked out the bond market. It doesnt get any better than that. Tomorrow the headlines will say strong june jobs report and by the way its going to mention the dow hit another high. Heres the way people start saying maybe there is something to this really, maybe the economy is getting better. And you will have people, bill and bob, youll have people being more worried about being out of the market than they are being in the market. Over the last two years, the amount of cash that the individual has held has gone up as a percentage, Something Like 22 , up to 27 in cash. So this is the kind of catalyst, as bob set a minute ago, that wonderful employment report, which he said was just strong enough, but not too strong to get everybody worried about rising Interest Rates. Keep your eye on the bond market. The bond market basically in europe that youve got this bifurcation, people buying german and french bonds at very low yields, and people buys greek bonds, port gee bonds, spanish, italian bondsing to some yield. Everybody keeps ask if the bond market is overvalued, and i keep saying compared to what . We may be above historical norms, but bonds against bonds . I dont think so. Against cash . I dont think so right now. That bond is the anchor. If the anchor holds and it does not slip, bob is right. If the anchor starts to move, then people start to worry about s p is at 1. 67 times sales, which is double its longterm average, and professor shiller talks about it being 45 above its longterm average. So valuation is just a smidgen on the shortterm base next 12 months, a smidgen above the longterm average. How about maybe for the quarter, now were getting into earnings season, bill, how about a nice little friend, the xeems themselves Start Talking about more capital expenditures. Its about guidance, thats for sure. Gentlemen, thank you, happy fourth of july holiday. Nice ties. Happy independence days. Nice tie as always, mr. Darst, coming from you and bob, that is nice. Make me feel great. Im going to wear it all weekend. By the way, there was a rumor out that the high on the dow was 17,076. Not true, but it was a nice sentiment. Going out above 17,000 ever. Were getting stronger as we go out on the close. Student for the second hour of the closing bell with kelly evans. Have a good holiday, everybody. Wow, a history day. Welcome to closing bell. I almost had a heart attack. We have some fireworks going off, thanks to the folks at macys. Who knew it would be such as apt display here on july 3rd, as we finish up the day on wall street, fireworks indeed. The Dow Jones Industrial average closing above 17,000 for the first time. Never, going out near the highs of the session. Our own sara eisen and dominic chu, with us, kenny polcari. Welcome to everybody, kenny, what do you think . Certainly a great way to go out for fourth of july, right . Kind of right at the top here, all this excitement. Todays nfp report certainly adding fuel to the fire. This morning out of. Dont forget its half a day today, low volumes not a lot of people around to react. I think it will allow the economy to catch up. The line about a 10 correction is landlords bumming a punch line. How concerned should we be that its kernel more . One of those markets where the path of least jassance is to the up side. It hasnt like weve been seeing the massive two to at least more volatile. What you have is a situation, where everybody is maybe trickling into these markets. Im not making a volume argument. Im just saying there hasnt been at least that many people just pushing or one way or the other the market is up or down. Youre looking at a Market Indicator that has been lagging over the course of the past year, and whether or not it catches up to the rest of the broader market, that remains to be seen. Even if it was, kelly, we would be talking about 17,6 right now, not 17,000. Thats a good point. I wanted to ask zach and heather, speaking of this trickle, what kind of flowing you guys are seeing from the public. At dom aluted to, volatility is week. All all for team usa, but now the world cup in terms of the usa winning, maybe thats over. Youll see some investors flock back into the markets for more active trading. What are you seeing . Again, this is not been a market that people have been participating in, and i guess institutions rebalancing. You know, its true there hasnt been an index pullback, its also not true there havent been pullbacks in biotech, emerging market decent, and were talking 15, 20 correction, so there is movement in these markets. I think kenny is probably right, next week you could see people saying, wait a minute, theres some earnings reality, so i dont think its like everybody has perfect. Far too many people are talking about how imperil this is. The signal Going Forward, we did see an interesting move today. The twoyear the question is, does this change the conversation . Which confirmed the trend of healthy improvement in the labor force. Heres the crazy things. With the strongest sector today. The curve is starting to flatten, but appears as though, dom, theyve been complaining about this. Heres the thing, though. The banks have been laggards for the course of the past year, so as you start to see things rotate towards more positive news, the financials have a catchup trade to make. If you look at today, great today, a lot of regional basics, great day. You can stay whatever you want but its not, this is the point that sara is making, all of a sudden the twoyear is saying, and the response from financials now appears to be this trade is moving from one where its a trading bay on the yield curve to one rotation from an underperforming sector into one that could be yeah. And some belief and some talk finally well starting to some reinvestment flows. Maybe more participation in this rally, maybe its too late, but that could help the banks overall. Look, theyve been suffering from these low Interest Rates, and that could be a help as well. Listen, janet has made it clear, along with every other central banker,ing in the daya turns so strong so quick will i so fared overregulation of banks often hurt them as we continue to improvement. And clearly they will. Banks will be under these multiple players of regulation, and i think if youre expecting profitability to changes dynamism, a youre going to be wrong, and b you should by thankful. We dont have another way. We do not want financials in my view leading this economy or this market, by the way, we are going to have kyle risdal. President obama made some remarks about perhaps doing more to crack down on wall street behave, on trading behave. I think its A Los Angeles of whats gog on, how compensation has so i think that we need to go back and take a hard look at the current state of affairs. We eye the 2000 mark on the s p, do you think that becomes a floor, or are we going to struggle back and forth . I think were going to struggle back and forth. I dont think 17,000 yet will become a floor. I think clearly it will at some point. I think next week when earnings start, i think youll see this reassessment. People will come back, get more natural selling. I think its going to churn, go back and forth. Through the summer. Whats key about that, too, as well. Early on in the earnings season, every time around, you always have representatives of the two biggest sectors reporting their numbers. This time it will be wells fargo alone on friday with jpmorgan, citi, b of a all the next week, but google, intel also coming up the week after that. Between financials and tech, sector wise represents those first two weeks. That will be key, because they could move the marx more than utilities. A couple things we havent touch on, the Services Index was stronger than expected in europe. You know ecb. Its not as if mario draghi came out with new measures, but theyre still having a negative deposit rate. And he signaled he would be open to doing more. I think that was the key in terms of what those bulls on the european stocks and bonds were looking for, the openness and willingness toward qe. The euro hasnt even moved since the last time they acted. He says hes monitoring the exchange rate. That central bank is certainly on easy street. The plus side, to throw an x factor in here, the next week in india will release its budget. We for good reason dont that you can about the 1. 2 billion as part of this Global Growth story. I think its a possibility that india backs what china was in 2000. If india does a fraction of what china did in the ten years past 2000 because of this new government, well be talking about Commodity Prices going occupy. Were seeing it already. Retail Companies Selling into the indians markets, which they could do right now. To what extent is all of this priced in . Because the indian market has done so well. Purely india and etfs, but the bottom line of procter gamble, walmart, you name it, i dontening were pricing it in at all. When it comes to american investors, its been a industry rally, and a lot of people were wrong about that this year. What happens next, if theres the view that the u. S. If the dollar strengthens, against a lot of emerging markets, is that still a good trade . Thats a tug of war. From a mutual fund perspective. In the u. S. And domestic markets 16 times price to earnings or you along abroke, europe nine times priced to earnings valuation. And remember, sara is totally right in that emerging markets have been the call for the past three years and the wrong call. So the question is, do the fundamentals of those markets making it the right call . But there are a lot of American Companies that are the beneficiaries of this, and thats going to help their bottom lines, even if the emerging market investing call is still alive. Heres the problem last word. Mutual Fund Managers are almost the proxy. They only put money to work if they have money to put to work. We havent seen a lot of conviction on the mutual fund side. But they still have cash. But you wont seen they buys big until flows start showing. Well leave it there for now. Kenny, thanks for joining us on this historic afternoon. Enjoy the early close as well. It wouldnt be the fourth of july without the fireworks. We just didnt think they would be coming from markets. Fresh off the closing bell, the execty producer of the macys fourth of sdwrul fire wok. Look, this is a huge event. What happens as hurricane arthur starts bearing down. We try not to worry too much about it. What we really concentrate on is the realtime weather at the moment the fireworks are supposed to go off. If there is bad weather, well wait until it passes. What kind of economic event is this, amy . This is a great day for the market, great day for us. Are our gift to america, and i hope youll by watching tomorrow. Try not to miss it. Its an expensive event for you guys as well. Can you give us a sense of whats involved with this production that people will see along the east river and as i understand it along the Brooklyn Bridge this year . Its a big deal this year, were celebrates the 200th anniversary of the starspangled banner and were working with Brooklyn Bridge, so it will be a stunning show. The bridge will come to life as the centerpiece of key moments throughout the show, but it will be magnificent. 40,000 bursts, 50,000 special effects just for the bridge alone. By the way, a lot of people like to listen along on the radio. Is it a human picking the songlist or Something Like songz that generates no, no, the soundtrack is cultivated for about a year. The fireworks soundtrack is the jumpingoff point for the fireworks themselves. Thats a team of humans picking it . Its definitely a human. I feel silly for asking, but im just curious. Song selection is all the rage in the tech world. We have a creative director who works on that soundtrack that really becomes a jumping off point, like i said. When we choreograph the fireworks to marry up to the music we choose. Good luck with all of it. Thank you, have a great fourth of july. A better than expected jobs errors helping that close. Up next, rail al can foro is here to explain. And a person to make the case why the Recovery Housing market was a major catalyst. You are watching cnbc, first in business worldwide. F provokes lust. It elicits pride. Incites envy. And unleashes wrath. Temptation comes in many heartpounding forms. But only one letter. F. The performance marque from lexus. Welcome back. Take a look. The dow closing above that 17,000 mark, does this rally still have room to run. Ralph strongly believes this is a secular bull market. Ralph, what does that mean . Hi. Hi. Happy fourth of july. Happy fourth. A secular bull, by definition, is a market that rises over many years, at least a decade, if not more. The last one we saw was between 1982 and 2000. That secular bull lasted 18 years. By the way, you have bear markets during that secular bull. Youll have many, many corrections, but they work their way higher, and the essence of a secular bull is sector rotation. And id like to mention today the consumer discretionaries, and the Telecom Sectors actually made new highs. No one is talking about it. Thats rotation. Thats encouraging. By the way, after that job reports, you emailed one of our producers, a bull, i think, right off the bat. Yes. Why is it that this report seems to have hit all the right notes for this market . You know, im not an economist, kelly, but the market is probably one of the best indicators of the economy. You know, you can just argue about the nuances of the report this morning on the jobs report, but market likes it, low inflation, low Interest Rates, dont fight the fed. It looks good. So, ralph, you have given us a backdrop of a rally that could still have several years to go, but in the past, as moments when it looks like the market is breaking down, you havent ruled out corrections in the range of 10 to 20 . At what point do you think we finally get a move like that . Certainly thats going to be on top of everybodys minds. Yes. Normally and im going to get very technical for a second. For us to have a sizable correction, a meaningful correction, the market usually hesitates a couple months. If you remember in april, i was very concerned about a correction. First four months of this year, the dow couldnt get out of harms way. The dow couldnt make a new high. That was one of my major concerns. Seven out of the ten sectors were doing the same. That is not the case today. So if we are to have a sizable correction, kelly, i would suspect that im going to see several weeks or a month or so of churning before that happens. Okay. Ralph, i have a question about correlations. You know, what we saw today was something very different from what weve been seeing, which is rising stocks in an environment when the dollar was stronger and treasuries sold off. All year its been the opt sit story. Rising stocks where treasuries were selling off. Are we in some sort of new environment, where all of these assets move in a different way, signaling a stronger economy . Yeah, i dont like to say this time its different, but so far it seems to be acting that way, and, you know, i i just dont want to fight the trend. I think we go with the flow. Speak of trends, you talk about there havent been many dips to buy. What are clients asking you about . Markets are at record highs, do you tell them to number . Do you wait for a 5 correction . 10 correction . How do you tell clients when they should actually get into a market that keeps on making record highs . I actually dont tell them when, i tell them what. I like to buy stocks that are not overextended. Kansas city southern, ksc, i believe it is, broke out. That would be a recommendation. Stocks that have lagged like microsoft, texas instruments, i think would be on my buy list. I get a nosebleed when i look at the sandisks of the world. I just cant chase them. I have to go for the ones that have not been extended. Those names in the dow jones indices, and again you said its not when, but what that seems like the strategy oar going after now, because no one can predict a correction. I have to do that, because the market no matter how you measure it, it is overextended. The fundamentals will tell you its at least fairly valued, some of it is overvalued. Its not like were coming into the game early, but it doesnt mean the game is over. What would you do about financials . I was on your line of you, buy that which has lagged, you would end up in that area. Yeah, well financials i still like bank of america. It hasnt done much of everything they have the fourth of july colors and flag there. We have it up around the exchange today their symbol or logo. Yeah, okay. So youve got [ laughter ] you sent us the bull, well send you a picture. Where do you see the last opportunity there in the financials . I think Goldman Sachs is a good place. I like wells fargo, and again bank of america. Their earnings fast approaches, ralph, have a great holiday, sir. Thank you. A strong jobs report, is it enough to cool concerns about the economy . Were going to talk about that next. As we head to break, check out this history of the dows movements from its inception until today. Now over 150 , and worth 25,875. This Credit Report card thing. Can i get my actual Credit Report. Like, the one the bank sees . [ male voice ] sheesh, i feel like im being interrogated over here. [ male voice ] shes onto us. Dump her. [ pay phone rings ] hello . Oh, man. That never gets old. No, it does not. [ female announcer ] not all Credit Report sites are equal. Experian. Com members get personalized help and a real Credit Report. Join now at experian. Com with enrollment in expn credit tracker. Welcome back. The june jobs report coming in better than expected, helping the dow close above 17,000 for the first time today. Our Mary Thompson has a look at one college helping to fuel job growth in a high skill industry. Mary . That industry being biotech, kelly. This is the outlook. 400 jobs here ins in misby 2016. 8,000 jobs across the country by 2020. Thats the outlook for biomanufacturing technicians. The people who help to nurture the trillions of cells used by Biotech Companies to produce drugs on a mass scale. So Quincy College designed a twoyear program aimed at specifically filling those jobs, knowing if they train the students in what the industry needed, the industry would high them. Case in point 25 years old alex wilson, hired by Shire Pharmaceuticals last year. Microbiology allowed me to conceptualize the behavior d. Biomanufacturing was the bread and butter, gave me all the skills i needed to do everyday activities and the foundation to move up in the company. Derek is enteren as tecata pharmaceuticals. Shes graduating this summer armed with the handson training shes had at Quincy College. It carries over throughout the field. As long as you have a Good Foundation of labwork, you can go anywhere. The program is working, because its graduates are. 100 of the first class found jobs, 0 of the second class are placed at starting salaries of around 40,000 a year. Kelly, back to you. Mary, an important reminder behind these big moves are a ton of young people in this country finding betterpaying jobs. Thank you, Mary Thompson in massachusetts, and happy fourth. Our next guest says this job report has a lot of good, but some bad and ugly. He joins us now, who says the fireworks started a little early because of this report. Welcome to you both, anthony. Lets start with the ugly. Weve been talking so much about the positive today. What are we missing in this report . Well, the only thing kelly that im very disappointed with is the fact we have so many parttime workers. As you know, the number of parttime workers for economy reasons going up about 275,000, then when you add in those individuals who want to work part time, you start to get a number like a million. I would like to see those numbers shrinking. That would mean theres even more earnings out there. Having said that, the hours worked are running almost twice as fast in the Second Quarter compared to the first quarter, so nonetheless theres going to be a lot of money out there to be spent. I am waiting for those numbers to shrink a bit. This brings up an interesting discuss right now. Overall hours worked are increasing, but again a lot of this work seems to be stitched together on perhaps a parttime basis. What happens if this is more than just a onemonth trend . I think it has been more than a onemonth trend in the sense weve been seeing this problem for a long time now, and underscoring this issue is the lack of income gains. You know, i dont want to be the first person to raise the negative aspects of this report, because i really do think on balance it was something to celebrate when it seems like for so long we havent had much to celebrate in this country. Thats not some sort of polyannaish statement, im same on balance its a good report. We do need to be improvement in labor force participation. Those are the two big question marks not helped by this report today. Anthony, can you give us a historical sense in terms of parttime Employment Today . When you look at parttime workers relative to when the job recovery began, you dont really see that much of an increase. Youll basically see it from month to month, but on top of that, what youll see is a huge part of the increase in parttime gains are thought individuals that want to work part time. Those being forced to work part time relative to the you dont see that much. Nonetheless i would like to see this number shrinks moving forward. One thing i will say, kelly, thats when you look at wage gains, particularly in those lowerwage components like food preparation and restaurants, those wages are not starting to pick up at 2. 7 . Ironically that is one of the sectors moving very rapidly. That might be a sign if you start this economy growing, you will see the wage gains, but with regard to the soft wage gains, keep in mind this is an environment where theres a lot of slack, so guess what . We have a lot of room in the runway to go. Theres a lot of slack. Otherwise with all these strong employment gains we have more than 100,000 more on nonfarm payrolls. We are still not seeing rapid wage gains. That means theres a lot of slack. Understood, mark. Last question, because what anthony said, a lot of people may be working part time, because they want to. If thats a reflection of demographics or preferences that are changing, is it a problem tore addressed and tackled . Or is there some other way we should by thinking about this increase . Parttime jobs . I think we do have a very dynamic economy. A lot of things are happening beneed theres a lifestyle choice, but i prefer not to shine a spotlight on all of that, and say that is something to celebrate. I think thats largely been a function of stress in the society in the workforce, and i think biand large, most people in this society are aspirational, they said to make a good living and want to work full time. Lots to chew over this weekend. Thank you, gentlemen, this afternoon. The dow hit 17,000. All the buzz on wall street, the question is how much is it buzzing online . What is topping the hot list . Well get that to you next. President obama taking aim any banks, saying there needs to be more changes Financial Regulation and saying the changes for the banks remain unfinished business. Why is he making industry a bog bogey man again . About speeds and feeds. Its all about latency. Its all about how fast does it run. I often sit with enterprises who ask me about how Mission Critical and hows the performance of the cloud. And i tell them, if you can make gamers happy, you can make anybody happy. Speed is made with the ibm cloud. He cadillac summer collection is here. During the cadillac summers best event, lease this 2014 ats for around 299 a month and make this the summer of style. Thank ythank you for defendiyour sacrifice. And thank you for your bravery. Thank you colonel. Thank you daddy. Military families are uniquely thankful for many things, the legacy of usaa Auto Insurance can be one of them. If youre a current or former military member or their family, get an Auto Insurance quote and see why 92 of our members plan to stay for life. Well, with the dow punching through that 17,000 market, could there be any other story topping our list . Alan, is it all about this market . It is all about dow 17,000 today. If you look at my chart b traffic monitor, right when we opened up the market and hit, spike, spike, readers piling into the website. Who led and who lacked . And four stocks sort of led the charge caterpillar, merck, intel, but on the laggard side, pfizer and p g. Theyre just sort of peeling back the onion. Looping with that we have a feature say make you should pay more attention to the s p, make more indicative of the market, so that is doing pretty well, and then jim cramer playing off that, youre right, s p is what you should look at, and then the jobs number. I always thought it was curious that the commissions, always puts the dow as the major tell for the u. S. Market and the s p is in kind of the other basket. Maybe its just because of the long history there. Or maybe you could just by cynical. Thanks very much. Happy fourth. First, your house, what impact does the price of your house have . It may be more than you think. The white house may not be done with banks here. Seemingly out of nowhere, taking a swipe at big banks promising more regulatory action. Well speak with the man who interviewed the president to find out why he might have chosen to do this. Is a daily game of what ifs. What if my abdominal pain and cramps come back . What if the plane gets delayed . What if i cant hide my symptoms . What if . But what if the most important question is the one youre not asking . What if the underlying cause of your symptoms is damaging inflammation . For help getting the answers you need, talk to your doctor and visit crohnsandcolitisinfo. Com to get your complimentary q a book, with information from experts on your condition. 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With evidence of that, were joined by cnbcs diana olick, youre taking some credit for this . Why wouldnt i, kelly . Look, its not the Home Builders pushing the dow and overall market higher, though dr horton did hit a 52week high. The index is up, but it could be home prices, that is the return of home equity. Home prices have been rising on a yearoveryear basis for 27 straight months, now 19 below their peak of 2006, but up 26 from their drop in 2012. Rising home prices have brought millions back above water on their mortgages, though between 6 and 10 million are still drowning, depending on which particular survey you choose to believe. Still thats about half as it once was, borrower are not drawing on this equity. No spike in cashout reifies, but when they feel more secure in their single largest investment, they may want to invest in that home again, do some remodeling, which of course benefits the big retailers, and puts money back into the economy. Borrowers could also be taking advantage of savings from the major refinancing boom that occurred in 2012 and 2013. They didnt spend then, but may now the record low rates, they put cash back into our pockets to spend, to investment, and to fuel the economy. Kelly . Diana, point well taken. Great to see you. If the Housing Market helped the stock market, will that continue for the rest of the year . Lets ask sherry olaf son, director of the carnegie group. Sherry, how good is the prognosis for both, do you think . Good news we ask count on the strong indicator foss this to continue, but it definitely will moderate. Were now at a point where three quarters of the u. S. Markets are within, on average about 3 of the actual market value. Were not going to see those big jumps. Were also seeing investors backing out, so we need to see buyers getting in. And the single biggest thing that we can see to help with confidence, which helps with spending which helps with the market moving forward, is simply eliminate that mortgage insurance requirement that fha now has for the full life of the lone, because thats really whats keeping most firsttime buyers and average and lowincome buyers out of the market. Wheres that 25 . Is it places lie greater detroit . Areas of la us that still havent recovered . Sure. Were seeing it on both ends. Places like nevada, and of course detroit, that are still struggling, add also see many bubble returning, where we had huge bubbles before. Most are only within about 10 of actual value, but theyre beginning to form. I dont like you using the word bubble, sherry. Even a mini bubble, is it problematic because of the speed and the size of rebounding in prices. Do you use that word because you feel its not fundamental or predicated on only further gains and will repeat the experience of last time around . Right now its mostly because of inventory shortages. We also have were about a half Million Units per year short when it comes to construction, and no real signs in sight that would be eliminated any time soon. The main reason for that is Home Builders are still reluctant to ramp up, simply because they know most buyers cant get loans. When were mentioning this term bubble, i look back to 2004 through 2006 when the reserve was actively raising rates, yet that stilltill didnt prevent t 2008 housing crisis. I just hope, i mean, if you hear anything about Interest Rates rising, i hope sooner rather than later, are we keeping them too low for too long . Could that also be a problem to create a new reemerging type of housing bubble . Weve seen what happens so far with the up ticks in the Interest Rates. It does have a negative effect. Housing i think is too fragile to look at major increases. The most important thing at this point is certainty, but again freeing up the mortgage availability is a big issue, which in turn will free up inventory, create more inventory, and really help to keep us on a slow but steady path and keep the markets growing as well. Sherry, thanks, its a good reminder, this is an important handoff, and well see if it can take hold over the summer. Thank you for now, sherry. Sure. Good to see you. An unfinished piece of business, thats what president obama called reforming and regulating the banking industry. The man who conducted that interview with our panel delving into why hes revisiting things noun. Monday on the closing bell after youve record from sticker shows of gas prices, well talk to tom petry about oil, gas and all things energy. Dont miss it. [ girl ] my mom, she makes underwater fans that are powered by the moon. She can print amazing things, right from her computer. 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Were they planned remarks or off the cut cuff . Ivities i think it was a bit off the cuff, but the guy is smart, and he doesnt actually every say things he hasnt thought through. Its worth pointic out that the press secretary walked back the remarks and said hes not got any regulations in mind, he just wants to keep an eye on the banks and keep an eye on the risk. So maybe he caught some of his own people offguard. And certainly caught wall street offguard. Everyone was looking at each other, is he trying to help the economy or not . Zach. Kai, hi. Hi, zach. I wonder if there was any specificity of this is unfinished business, but this is how it might be finished. He didnt get into specifics. I pushed him back a bit. You could see, first, he got a little frosty when you push back on and hi advisers tensed up a bit. I think he had some thoughts that he he wants people to know hes still looking at the bank and how they fit into the economy, which he has said a zillion times isnt working the way he wants it to. I want this that people responded to this negatively, or maybe people were surwere surrounded by here. Do you think its still popular for the president to go after the banks . Thats an interesting point. The thing that came through this interview the president s clearly frustrated that he cant get congress to do anything along his lines of thought. So hes doing all this stuff by phone and pen, as weve heard all year. I think this was part of that pop you list, i guess is the way you phrase it, attempt that hes getting to go out to the people and say look at me, im trying to do things, even if congress cant. Echoing what he said earlier. Kai, i know you asked hmm about the future of the republican party. I thought it was interesting. It took him about three or four minutes of our 15minute, 18minute sitdown to get to the republicans in congress, which kind of surprised me, but my question basically was is this where we are now, with one guy and a pen and in a pen i mean, the white house is a pen running the american government. He said as before, ill work with congressional leaders if they meet me halfway. Hes so deeply frustrated. Theres a definite battle between excessive regulation. The question Going Forward will be will the pendulum or could it swing too far in the opposite direction, preventing banks from growing topline revenues and making profits even and surviving. Could that be the case Going Forward . Did they have concern . Lets be honest, theres zero chance the president will get any new regulations going through congress. That flat will not happen. Hell dough what he can, and bear in mind the white house said he doesnt have anything specific in mind. I think hes trying to put people on their toes. On the infrastructure, hes been talking about this for the past few week of the defrayed infrastructure. Why is it, do you think, theres so Little Movement on that in congress thats not a partisan thing, building bridges and roads does not go democrat or republican. Right. Its not a partisan thing at all. The interstatement highway system, its been Dwight Eisenhower highway. I think its gotten caught up in the politician of the Republican Caucus there and their desire not to have anything to do with the president and anything that he suggests, even though things that are historically bipartisan are now on the table. So, kai, simply put, how much of this is jockeying ahead of midterm elections . How much of this is setting the tone for the next few months . Great point. The best thing the president can do for democrats is to get people understanding its republicans in congress, in his view, that are not letting anything happen. The white house doesnt call you out of the blue to say hi, right . They have something to get out there. Great point. Please come join us in new york at some point here on the stock exchange. Will do. The country ready to celebration the birth of our nation on july 4th, 1776. Wee reflect on the history that happened on july 3rd, 2014, dow at 17,000. Tried to quit. I probably about five times. It was different than the other times i tried to quit. Along with support, Chantix Varenicline is proven to help people quit smoking. Its a nonnicotine pill. Chantix reduced my urge to smoke. That helped me quit smoking. Some people had changes in behavior, thinking or mood, hostility, agitation, depressed mood and suicidal thoughts or actions while taking or after stopping chantix. If you notice any of these, stop chantix and call your doctor right away. Tell your doctor about any history of Mental Health problems, which could get worse while taking chantix. 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During the cadillac summers best event, lease this all new 2014 cts for around 459 a month or purchase with 0 apr and make this the summer of style. The New York Stock Exchange was in a turmoil. The inevitable crash had finally come. December 7th, 1941, a date which will live in infamy. I shall resign the presidency effective at noon tomorrow. The do you off more than 500 points, october 19, 1987, wall streets black monday. 15yearold firm born before the industrial revolution, lehman brothers, will likely file for bankruptcy tonight. Five years after the bottom, the market erases its losses from the financial crisis. There it is. Were above 17,000. We have never seen that level before. And that was today. Historic. Check in with our panel, reaction, guys . , 80s, early 90s . It was all flat, and then went parabolic. That history felt so much easier in that 30second digest than living there you it. I remember it being much more unpleasant. Its funny to see how its only been seven months since 16,000, seven months before that. It has not just been a historic day or milestone, but a historic bull run. This will go down in history and already isnt over yet. To your point. I was looking at the way we were covering Consumer Confidence and how people felt and were acting in 1995, 1996, the headlines were universally negative. Consumers dont think their incomes will recover, they dont believe in the economic recovery. We are a nation of anxious people, i guess, when it couple times to the economic future. And its only when you really feel like youre getting into youre taxiing and being asked for stock tips that you need to stop thinking, okay, theres some Serious Problems here. Were not in that phase. 1982 flu 2000, stocks were essentially in a Straight Line up, albeit 97, there was a huge dip and black monday, so you do have volume tiff moments, but that was an 18year period. Thats what heather and others were saying, its time in the markets. Not timing the markets. Yes, we are at historic highs, and so to your point, youre saying youve seen the market run for a lot longer, 1,000 days without that 10 pullback or correction in the market, so maybe this is not a bubble. Markets arent frothy. Maybe we can head higher. If markets will go higher, we will always by definition be hitting historic highs. You just havent to wonder who is in this market. Corporate america. Yeah, Corporate America buying back their own shares. Whether they come in or not, thats going to be whats interesting. Gary shrier, and i had a conversation yesterday morning about how optimists will always range, because no matter what, it bats 1,000 for hitting new highs. It felt different in 2009, the trajectory looked different. Today standing at 17,000, its the decline that looks like an aberration. I tried to bring in sparklers through security or popits, but they stopped me at the door. We did have our fireworks. In any case the market delivering it for us. That does it here on closing bell. In a historic week, the dow closing above 17,000 for the first time, as the u. S. Strings together a gain of five months in which weve hadhooded 200,000 jobs or more to the economy. I want to thank the panel for joining me this afternoon. I hope everyone has a wonderful fourth of july weekend. The cnbc documentary amazon rising begins right now