on the trading session. the nasdaq is up 11, but there it is, the s&p 500 finishing at an all-time record high, 1568.89, up about a third of a percent there and that's what the market's been waiting for. >> bob pisani has been clocking the record-setting action all day here at the new york stock exchange. wrap it up for us, robert. >> what a nice way to end the quarter. this was perfect. it was worth the whole wait, folks. let's take a look at the s&p 500. here's what happened. here's a 13-year chart of the s&p 500, put it up for us. there's that famous triple top. the top, historic high in 2000. the other historic high, in 2007, and now another historic high in the year 2013. now, a lot of people are saying, what's going to happen next? most traders and analysts feel, if we can get decisively over this, break up decisively over that triple top, then you've got a real rally going. that would be another little phase to this rally that we have been in here. take a look for the quarter. let's talk about where we've been there and how that's doing here. you want to see a broad rally? when you see defensive names like health care and consumer staples, up double digits, and at the same time, the cyclical names are up double digits, that's a broad market rally here. how about the quarter. industrials were strong, but transports were even stronger. and yet, big cap was strong, but small cap, russell 2,000 was even stronger. that's certainly a good sign. signs of the economy usually expanding. finally, bear something in mind. this rally is not three months old. this is a continuation of a rally that began four years ago this month, in march of 2009. that's when the market bottomed. take a look at where we've been since then. we're talking about 130% increase in the s&p 500. and guys, i know a lot of people are deeply cynical about it, for many reasons, but this has been one of the great stock market rallies of all time and it's not over yet. >> yeah, people are still very skeptical of this rally to this point. >> they sure are. let's talk about that exact point. let's get straight to all the market action and what to expect in this new quarter that begins next week. david sowerby, rick johnson, rick santelli, and paulal salcari is with us as well. bob, those were some impressive numbers. the question that some people are asking is does that green light further significant moves from here, because there's so much skepticism about the market as bill mentioned, or do we get that long-awaited pullback now that we've achieved historic highs? >> you get both. but longer term, it's still, stocks are still going to be the asset class to beat. and i heard bill and bob both talk about small cap stocks. off the november 15th lows, large cap stocks are up 17%, small cap stocks are up 24%. in 4 1/2 months, that's a two-year move in small cap stocks. we're going to get a 10% correction, at least a 5% correction. we had a couple of them last year. if you get that, be an opportunistic buyer. because stocks, i still think, are the asset class that institutional retail investors are going to rebalance to. especially when i look at the end of the first quarter and you see that stocks up 10%, but my bond funds are down 1%. that's going to be a stark difference. >> and chris johnson, with us hitting this new all-time high on the s&p today, you feel like this market is the proverbial marathon runner and we've just crossed the finish line. now what, right? >> right, right. let's call it the marathon man. and bill, i've seen a few marathons in my time. i've never run them, but it's not odd to see those runners as they finish up that fine point two of the 26.2, stretch out across the finish line and then just collapse, because they need a rest. that's the way i'm looking at this market right now. the finish line was the s&p 500's new all-time high. i think it was important for investors and traders to see that. but the fact of the matter is, when you look at the daily, weekly, and monthly charts, you'll see a market that is well overbought right now. so far overbought, we haven't seen it since october of 2007 in the case of s&p 500. i think it's just time for a rest. your previous guest, right before the closing bell here, had it. we've had a great year in the first quarter. i think we just need to see a pullback. stocks are going to be the place to be for 2013, though. >> and kenny palcari, weigh in on this. >> i think everyone that the guests have said is absolutely true. i do think the market's exhausted. you can feel it, because we made this new high today. it absolutely was not the same one we made it back in 2007. the tone and the feeling of it is very different. that being said, i think the market is in a good place, but i think you do have to see some pullback and you do have to see some consolidation. >> how the the tone different, kenny? >> in 2007, people were fully employed. the housing bubble hadn't burst yet. people were feeling good about their homes, about what the future looked like. >> so we were saying, of course the market's going to go higher. >> exactly right. then we had this massive financial crisis. so this time, yes, we're making this new high, and it should feel good, but it's mixed emotions, right? because the market's telling you one thing, the economy's telling you another. and when you go out and talk to your next-door neighbor and you understand how they feel, there's a disconnect between what the market is saying and what people are really feeling. >> kenny, do you really think the markets are overpriced right now? all the standard indications are, no, and even if you look at the technical indicators, market breadth is still pretty good. i don't know why anyone thinks immediately, we're going to have to stop, because we just hit a new high. >> i don't think it's necessarily that you immediately stop because you have a new high. i think we have to stop and take a breath and consolidate. the market has gone straight up since january. there's been no real consolidation or pullback at all. a consolidation is not necessarily a negative thing. it's an opportunity for the market to kind of remain healthy and it will certainly be an opportunity for people who want to jump in to jump in. >> let me ask -- >> i think -- >> let me ask mr. market -- let me bring rick santelli into this conversation here. what, in your view, has been the message or the biggest feature of this market, this first quarter, that we're closing out right now? >> oh, i think our guests nailed it. it's just like a marathon runner, but the issue is, is talented as that runner is, when he finished and he's tired, he gets a big steroid shot and keeps going for another 26 miles. so he talented, the economy is better. but everybody's saying that this market has to stop and is thinking about it in the context of what markets used to be. who knows? bob pisani said it's a creeping market. traders down here agree. it's a lot creepy and we can't figure out what's real and what isn't. but i guarantee you, the only pit left open right now is the s&p futures for another eight minutes. and those guys, as creepy as they think it is, they like being long, because they like making money. >> well, listen -- >> are they bidding it higher right now? rick, are they bidding it higher in the futures now? >> actually, they are. when the big market closed, they were up 5.25, they're now up 6.25. they've improved it one point since the markets closed. >> new highs beget new highs. you're going to see a little bit of that. and then for the market, the pullback is not going to be the worst thing in the world. >> right. chris, you know, the market is able to climb with the wall of worry that we have with europe, with the strengthening u.s. dollar, with the problems with the euro zone. and the fact that the individual investor hasn't wholesaly liquidated their bond fund holdings seems to argue, not yet, but seems to argue that the individual investor is not wholesaly in this market. doesn't that argue for much higher prices down the line? >> i think we're a long way from seeing the individual investor. and the funds that we're seeing come out of those bond funds, that's the beginning of it, as interest rate risk begins to drive those action. you know, we're far, i think, from the end of the long-term bull market, but, again, i think as everybody's put out, and it's a broken record, we just need to see a little bit of a break. there's a lot of professional money. forget about the individual investor. there's a lot of professional money that is still sitting on the sidelines here, waiting for maybe a 2% or 3% -- cramer said this morning. it used to be a 3% pullback, and now it's a 1% or 2% pullback and people are buying it. >> the first hour of trade. >> which doesn't seem to matter from the last hour anymore. >> david saowerby, i know you'r cautious, but are you buying nothing right now? >> bill, i'm buying stocks and on the bond side, i think it's the type of instruments that will fare better as rates move higher. that's corporate high-yield. and emerging market stocks have only run 7%. so i think the asset class that's more undervalued, that's going to be one of them, and that's a place i'd be targeting funds at over the next year -- >> so you don't want to go with the strength, what's got us here, you want to go with some of the laggards and hope they play catch-up. is that the idea? >> it's more o a value-based approach, that that asset class has lagged. but the growth the still there, and outside of the problems in europe and china, i think that's where the growth is and fiscal responsibility and i think that's where the price appreciation can also be. >> all right. so, bob pisani, look into next week. there were a lot of people who were going to be watching what's happening in europe over the weekend, what's happening in cyprus over the weekend. and we did hear from some traders that they didn't want to go into the weekend aggressively long. so what are the data points or what are the possible bumps in the markets? >> the ecb meeting. mario draghi's having a meeting and the bank of japan having a meeting, and mario draghi's got a huge problem with cyprus. there are many little banks sitting there in europe that he is a afraid that are going to get rumors and all of a sudden he's going to have dozens of banks applying for aid. he's got to cut this awful immediately, imply that he'll be there to support any banks in trouble. what he really needs is an orderly process to shut down banks that are not stable and he needs some kind of banking union to -- he doesn't have it. you'll hear more about that. >> and in fact, some of those banks might even be in his mother country, right back in italy. and the problem is, italy's a much bigger country than cyprus was. so if you start to get that nervousness in italy, that might be some of the catalysts that causes a directional driver in the market. >> it did. look what it did to bank stocks this weekend. >> kenny, we'll let you get off to that roasted lamb. >> that's it. >> happy holidays. the nasdaq had a little bit of an uptick today, kind of overshadowed by what's been going on. seema mody is up there and recapping the winners and losers for us. hi, seema. >> let's start with the best-performing stocks on the nasdaq 100 this quarter. semiconductor player micron tech topping the list thanks to upbeat earnings and a sharp rise in d-ram chip demand. sellmy up. biotech as a sector has been outperforming. dell on hope that the pc maker lo go private. and gilead sciences making it big. and apple shares, while off of its lows, still down 17% year-to-date. concerns around margin compression and entrance into lower end markets weighs on shares. other losers on that list include akamai tech and randgold resources. and blackberry reporting a surprise operating margin, although it did see a drop in subscribers and that's perhaps a reason we did see the stock pare gains at the end of the day. but the stock has gained better than 20% over the past three months. it's been an eventful q1. looking forward to quo2, guys. >> seema, great job. thank you very much. see you later. much more heading your way on what has turned into a very special edition of the "closing bell" today. >> how safe are your equities? up next, we have a guest who says, do not be fooled by their record-setting ways. stay tuned for that one. and also, what will be the single best stock to owner in the second quarter, you ask? wall street's top money pros give you their picks coming up later. can't afford to miss that. >> and biogen stock punching through to an all-time high thanks to government's approval for a new treatment for multiple sclerosis. >> and biogen's ceo speaks with us exclusively about this new blockbuster potential for this pill for ms. you're watching cnbc, first in business worldwide. with fidelity's new options platform, we've completely integrated every step of the process, making it easier to try filters and strategies... to get a list of equity options... evaluate them with our p&l calculator... and execute faster with our more intuitive trade ticket. i'm greg stevens and i helped create fidelity's options platform. it's one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open an account. investor. yeah, ibut i'm a busy guy.or it used to be easier but now there are more choices than ever. i want to know exactly what i am investing in. i want to know exactly how much i'm paying. i want to use the same stuff the big guys use. find out why nine out of ten large professional investors choose ishares for their etfs. ishares by blackrock. call 1-800-ishares for a prospectus which includes investment objectives, risks, charges and expenses. read and consider it carefully before investing. risk includes possible loss of principal. 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[ male announcer ] next up, the gutters. citibank popmoney. easier banking. standard at citibank. it was a record-setting quarter. it wrapped up a few minutes ago and josh lipton is here to run through some of the more notable movers. and there were quite a few, josh. >> there were, sue. a new record-closing high for the s&p 500. the benchmark cage advancing some 10% for this quarter. would have been the leaders and the laggards. leaders this quarter, best buy, hewlett-packard, h&r block, and micron technology. netflix, though, comes in first by a long shot. up some 100%. and by the way, netflix is also the biggest gainer since the last market peak in 2007, up 730%. laggards in the benchmark gauge, cliffs natural resources, jcpenney, peabody energy, garmin, and u.s. steel. also a record high close for the dow, up 11% in the first quarter, its best showing since 1998. big gainers among the blue ships, american express, johnson & johnson, pfizer, only caterpillar and alcoa in the red. >> we were about two points away from it being the best quarter for the dow since 1987. so we don't have to worry about that 87 correlation anymore. >> thank goodness. >> first quarter certainly very good for stocks, but the question is will they still be a safe place to invest in the second quarter? scott rent thinks so, but walt zimmerman thinks the long-awaited pullback is coming sooner rather than later. good to see you both. thanks for joining us today. >> scott, why are equities still safe? we had an enormous run, as you know, and the s&p finally closed at this record. a lot of people think, perhaps, we're due for a turnaround. >> well, you know, sue, let me first say, i would love to see a pullback, because i think it's an opportunity. but i think what we have going on right now, we're in a modest growth, modest inflation environment. we have valuations on our side. they're not expensive. we have an improving economy. we have a fed tailwind. that's kind of the overlap right there, that i think is working for us. but, you know, we do a lot of economic projections. and when we look at building permits and lei and industrial production and things like that, when we look at those through the end of the year, they all look very positive. i think we'll have 2.5% gdp this year. modest growth, modest inflation, not the end of the world and stocks can do well in that. >> walt, i know you're a chart watcher. is that why you're cautious for the second quarter? >> yes, there's a few charts that we're looking at. one is the fact that the gap between nominal s&p and real s&p is the widest in the history of the stock market. s&p making new highs nominally, adjusted for inflation, s&p is 25% below the internet bubble peak. >> you know what some people would say about that, though. and ben bernanke alluded to that the other day. when we were making new highs a couple of weeks ago when he was speaking at his news conference, he said, you know, in nominal terms, just numbers whys, we're hitting all-time highs, but when you adjust for inflation, we're not even close. the implication being, we still have room to run. you're not suggesting that, though? >> the problem is, consumer sentiment is tracking the real s&p. consumers are not being fooled by what is really just an inflated stock market due to fed policy. and the gap between nominal and real, we see, is a bubble. and then the question is, how close is this bubble to bursting? three points there. we already have bearish momentum divergence. we already have bearish sentiment divergence. and when we come in, it's going to be april. there's that old proverb, sell by may and then go away. and that has worked like a charm, especially for those years where going into april, the market is overbought and overcooked with regard to both sentiment and momentum. and this market has both. >> so, scott ren, take the other side of that, then. those are some very interesting points. we haven't heard the "bubble" word used by many, but it is out there now, and what you think do? >> sue, walt's the technician, but i made a living for 39 years being a technician and i look at it in a more simple fashion. we've been in a big upward sloping fashion since the september 2011 low. so on the charts, we could trade down 5.8% and still be in a positive, upward move. you have to remember, wells fargo advisers, our clients are retail investors. we cannot react to a 5% or 8% move. you know, if we think the market's going to trade down and keep going down, we can react to that, but when we think the market is going to go up over the next couple of years and is going to finish this year higher than where it is now, 5% or 8% pullback, technically, looks really good to me. and i would welcome that. because, like i said, i think it's an opportunity we want our clients invested in this market. they've been fearful, they have too much cash, and they still have a couple more years to go, bill. probably through 2015, where the market is going to be good. you've got to be in this market. >> walter, let me throw -- you threw tradition at us, we'll throw tradition at you. some statistics we've heard, with this gain we've had in quarter, best since 1998, for the dow, for one, going back to 1950, we've had this kind of gain eight times and every single one of those years, the dow was much higher than it was at the beginning of the year. isn't it possible, even if we do get the sell in may and go away, that we finish higher for the year in a good way? >> well, you know, if you get a 20% correction in between, that's going to be little solace to those who are getting long here. getting long the month of april in an overbought market, especially one with a yawning chasm between real and nominal, to me, seems like a prescription for trouble, if not disaster. that buying into a bubble like this, bubbles never have a happy ending. and what strikes me here is bernanke is saying, i have a great track record on inflation. well, greenspan thought the same thing. he was unable to see the housing bubble. he was unable to see it as a bubble. bernanke's unable to see this as a bubble. and i think a lot of retail investors are also not seeing it as a bubble. they have no exit strategy. they're adding to length up here. i just don't think that's a good idea. >> all right. good discussion, guys. thank you both. happy holiday. >> have a good weekend. >> see you later. >> well, we're still going to pose the question about whether or not the bulls can storm wall street again next quarter. and we're going to talk to someone who can look at the past and give us a pretty good idea of what the future will hold when it comes to the market. he's the editor and the founder of the stock trader's almanac, and that's coming up. >> and later, the s&p makes a record finally, as the crisis in cyprus continues. we have a live report from nicosia, coming up. hey, this is challenger. i'll be waiting for you in stall 5. it confirms your reservation and the location your car is in, the moment you land. it's just another way you'll be traveling at the speed of hertz. lyric can. lyric can. lyric can. lyric by phonak is the world's only 24/7, 100% invisible hearing device. it's tiny. but that might be the least revolutionary thing about lyric. lyric can be worn 24/7 for up to four months, without battery changes. call 1-800-411-5534 for a risk-free trial. cookie: there's absolutely no way anyone can see it even if they get right up to my ear. michael: wake up, go to sleep ...showering, running, all your activities. lyric can also give you exceptionally clear, natural sound in quiet and noisy environments because of how it works with your ear's own anatomy. can your hearing aid do all this? 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[ male announcer ] how could a luminous protein in jellyfish, impact life expectancy in the u.s., real estate in hong kong, and the optics industry in germany? at t. rowe price, we understand the connections of a complex, global economy. it's just one reason over 75% of our mutual funds beat their 10-year lipper average. t. rowe price. invest with confidence. request a prospectus or summary prospectus with investment information, risks, fees and expenses to read and consider carefully before investing. welcome back. so we saw record-setting first quarter for stocks. where do we go from here, you ask? what does it mean? what do these last three months mean? what do we expect for the second quarter? brian shactman has spent this entire day digging through the record books. what did you find? >> the record books are like this high, too. i want to start with this. since 1950, there have only been 12 instances where the dow has finished the first quarter up more than 8%. each year the index finished in positive territory. 1954, 8% in q1, up almost 44% for the year. 38% for the year in 1975. but look at 1987, 21% in the first quarter, but only 2.33% for the year. it was negative after that first quarter. we've talked a lot today about the possibility of a pullback, especially in the backdrop of q1 gains. the last few years, i want to take a look at. because april of '11, it's very interesting to see what happens. the first week of april after we gained 6.4%, we were flat, and then down 0.31%. but the next two weeks, we're up nearly 4%. let's take a look at last year. the dow gained just over 8% in the first quarter after losing 2.44%, we got almost all of it back by may 1st. if you take a look at the long-term history, it tells us the year likely will be in the green, right, for 2013, and the short-term history tells us not to get spooked if april starts in the red. so that is 54 seconds of magic after pouring through those history books, bill. >> well done. >> thank you. >> thank you, brian. >> more perspective now. we thought we would go right to the source on this one. >> indeed. joining us from our cnbc world headquarters is jeff hirsch, the editor and chief of "the stock trader's almanac." >> welcome back, neighbor. >> duty good to see. >> put into perspective this quarter we just had. obviously, it was a strong quarter, but historically, how does it rank? >> as q1s go, it's in the top ten of the best first quarters. and none of those have had major losses. we've had 87 which had a pullback. but there are several other things that have been positive here out of the best six months. everyone says sell in may, but forget about buying in october. that's been firing on all pistons. the seasonalties have been trading very well. and a lot of it's affected by this bernanke put. and it's, you know, a wonder to eme how long the market is going to be able to stay high on this level of kool-aid that the fed's been serving. they may need some more. >> that's what it's all about. when we look back to history, there are a lot of cyclical trends. what we're doing is we're measuring buy and sell. supply and demand, market sentiment. the psychology of the individual investor. we've had a great ride here, but don't you agree, there's still a tremendous amount of skepticism this time around compared to the last time we were at these highs back in '07? >> i don't know if i would use the word tremendous, but it's more skepticism, yes. i do see everyone's talking about this retail coming off the sidelines. it's starting to look like the beginning of at least a mild correction. i'm not expecting anything massive because of that bernanke put that we've all been talking about. and until that gets pulled away, and i don't think it's going to go anywhere until, you know, mr. bernanke likes to leave office next january. but right now, there are still people on the sidelines, there are still some bears out there. some of the indicators are a bit frothy. some are not as frothy. so i think this thing continues to push a little bit higher. but, again, we're coming into april with the market being up a tremendous amount. there's a lot of positive indications. but we're cautious, we're going to trade the indicators is and be ready to tighten up and lighten up. >> what indicators are you following the most closely? what signals are you watching? >> well, technically, we like mac-d and some other technical indicators -- >> what's that? >> merging average convergenconvergenc convergence/divergence, where you have the difference of two moving averages plotted against the -- >> is it bullish or bearish right now? >> right now it's still bearish. it's something you used to confirm, buys and sells, and we don't begin looking for a mac-d sell signal until we get into april, which is around the corner. but the early year indicators, the january barometer, the first five days, the santa claus rally, and now we've gotten throughout the first quarter without closing low. we have this superfecta of early year indicators which have not been followed by any nasty declines. there's a few little blemishes, '87, and 2011, we had the s&p down about 0.03% for the year, dow was up about 0.5. so other than those two years, the market has been very strong coming in after this big first quarter and those four indicators being positive. >> let's talk about for just a second about 1987. we did have a very strong quarter. as we said, we were just short this time around, to the first quarter that they had in 1987. and we all know what happened that year. so history, as good as things look right now, we can always see something else happen, can't we? 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tdd# 1-800-345-2550 i love it when you talk chart patterns. tdd# 1-800-345-2550 trade up to 6 months commission-free tdd# 1-800-345-2550 with a $50,000 deposit. tdd# 1-800-345-2550 call 1-800-790-3803 tdd# 1-800-345-2550 and open an account, tdd# 1-800-345-2550 now with no trade minimums. biotech is one of the big market winners this year, returning north of 20% for investors. and one of the key standouts of that group is clearly biogen. >> the company now trading at an all-time high, just yesterday. you probably have heard by now, the fda gave a thumbs up to the sale of the company's first pill for multiple sclerosis. very significant, because the feeling is most would prefer a pill over an injection or some other administration. biogen's ceo joins us now exclusively to talk about this. congratulations on this. it's been a long time coming. i've heard all kinds of sales projections from wall street analysts. what are your expectations for this drug in the next few years? >> we're quite excited about the drug. it looks to be very efficacious, it seems to have a good safety, tolerability profile. it's oral, as you said. seems to have the potential to provide benefit to a broad array of patients. we're quite bullish on the drug and very excited about its approval. >> put it in perspective in terms of your pipeline. you do have a very good pipeline, certainly, but where would this drug rank in terms of top sellers, the most potential. can you give us some perspective on that? >> yes. as we look at the ms market, there are the first-line drugs, which are largely injectable now, and we have avanex, a drug that plays well there. we think that has a potential to be the leading drug in that segment of the market. we believe techfidera has the potential to be the leading oral drug. and the third drug we have on the market now is an extremely efficacious drug for patients who have a more severe form of the disease and need more effective therapy. we believe, that can be the leading drug in that segment of the market as well. so as we see the market evolving over the years, we believe we have a good shot at having a leading drug in each of those three segments. >> let me go back to my first question, because i didn't hear a number in terms of sales for you. some analysts feel the new pill could generate maybe $3 billion a year by 2017. are you comfortable with that? >> yeah, well, you deliberately -- it wasn't an accident you didn't hear a number from me. >> i know, it's my job to push a little bit. >> i know, but we'll leave the speculation to the analysts. but i can tell you we have high hopes for this drug. a major drug in the ms space. >> but realistically, the other two drugs you have for ms, these aren't all for the same patient, are they? it depends on the journey they've had with ms, right, especially for this new drug. tell us about that and whether or not this has the potential to be a bigger drug than the other two you already have on the market? >> yeah, look, ms is not a homogeneous disease, it strikes patients at different ages, some patients have a more aggressive form of the disease than others. not every drug works for every patient. so, our goal is to have a drug that will work and provide a benefit for the majority of patients with multiple sclerosis. most of the drugs, as you said, that have been approved up until now are injectable. there are two other oral drugs on the market, but most of the drugs are injectable. patients get tired of injecting themselves. it's a chronic disease. people have the disease for their whole lives. we think as time goes on, oral drugs will capture an increasing chair of the market and capture a large share of the market and we believe we'll have the largest, most successful drug in that segment of the market. we have high hopes for the drug. >> what about the cost of the drug and do the changes that are currently being put through in terms of health care affect the ability of your drug to be as successful, perhaps, as it might have been under the traditional health care system? >> yeah, well, you know, we will ship drug over the weekend, and make it available to patients by tuesday. and we'll, of course, set the price early next week, when the drug is actually shipped out to patients. the ms market has been evolving nicely. patients are in need of new therapies, so we believe this drug will have a good place in the armor of drugs to treat this disease. >> no numbers from you, but specifically as obama care is rolled out over the next few years, will it be more affordable under obama care than it would otherwise be? that's the question, really. >> yes, you know, i don't know the answer to that he? you probably have as good insight as i do as to what the future of health care is going to be. i will say the country does have an issue with health care costs, for sure. they're rising at a rate that is not sustainable. that rise is not driven by pharmaceuticals. that rise -- the increase in health care costs is driven by other factors within the health care industry. pharmaceuticals, i think, are one of the few tools that we have to actually bend that curve and to use pharmaceuticals properly, to get the right benefits to the right patients, to actually keep them out of the hospital, keep them healthier and reduce health care costs overall. that's certain our aim and i think it's the aim of a large part of the industry. >> well, i know we always talk about the business side, but from the human standpoint, we thank you for all you do to try to mitigate what is a horrible disease for many people. thank you very much. >> thank you. >> george scangos, ceo of biogen. >> best and worst, find out which sectors fare the worst and which the best for this past quarter and where they could go from here. >> and next, the record and the rally did not get derailed by the banking crisis in cyprus. those banks reopen their doors after a two-week shutdown. live to nicosia for a damage assessment. and now there could be a new wrinkle in the story that could change everything. stick around. ♪ [ female announcer ] you're the boss of your life. in charge of long weekends and longer retirements. ♪ ask your financial professional how lincoln financial can help you take charge of your future. ♪ has an equally thrilling, lesser-known counterpart. conquer them with the exhilarating is 250. get great values on your favorite lexus models during the command performance sales event. this is the pursuit of perfection. well, the waiting is over. the banks reopened in cyprus for nearly two weeks, but now there may be a new twist to this saga. michelle caruso-cabrera is live in nicosia. michelle, tell us about that. what's going on? >> reporter: well, first, let me give you an update. the banks were open for six hours today, a key step for this country whose economy has been in a near state of paralysis. the people who showed up, as the authorities feared, there were lines, but there were dozens of people long, not hundreds, as the authorities were worried about probably because of strict controls put in place, where you couldn't withdraw more than 300 euros per person. now to the is aga, sue, that you were asking about. it involves the archbishop of the church of cyprus. his name is archbishop chrisomos. he's the head of the church of cyprus and arguably the most important and influential man in the country. this afternoon, he won an injunction from the country's supreme court to prevent the church's 11 million shares, 2.r52 2.95% of bank of cyprus to be wiped out to zero as the bailout agreement calls for. the argument is that the church, the church's property, cannot be seized by the government. now, this, at a minimum, has caused a political crisis here in cyprus. it also has the potential to disrupt the overall deal as well though the experts and the lawyers are conflicted as to just how big a deal this could be. there has been a marathon meeting over at the central bank to deal, presidentially because he's suing the head of the central bank and also the minister of finance. the archbishop is known to be an extremely astute businessman. remember, he controls the largest bank of assets in the country, mainly land. there's a lot right around our hotel as well. he's the largest developer here, and he's been a continuing figure in this issaga. he has repeatedly offered up the land in the country that he controls as collateral for potential loans out of the ecb to monetize in some way. so, guys, we'll have to see how this plays out. sue, bill? >> the foreign minister, today, michelle, said that the restrictions on people's ability to take money out of the banks could be lifted in about a month. what are you hearing about that? >> reporter: i think that's incredibly possible to predict. there's just no way -- i don't see how he would know. i don't see how anybody knows. when a similar situation happened in arch tgentina, they lasted for more than a year. the people i have spoken with who have dealt with crisis like this time and time again think a month is extremely on the m lly. but let's hope he's right. >> we can only hope. thanks, michelle. see you later. hot and not. we'll discuss the best and worst sectors this quarter, coming up next. >> and with housing in a recovery, we'll see if the materials sector has the potential to go from worst to first. we're back in a minute. here's what's to expect in the airline sector in the second quarter. will airline stocks keep soaring? the airline index hit a high in the first quarter and was up more than 20%. many believe it's time for the airline stocks to perhaps pull back a bit. expect planes to be as packed as ever in the second quarter. profits per available seat mile will also be up for the airlines. and many are wondering if boeing's dreamliner will finally get up in the air. if it does and the grounding is lifted, expect it to happen by mid-may. that's your airline sector check. i'm phil lebeau. e always learnie to make their money do more. 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a health care strategist covering the materials sector angle for us, doug sandler. what a good quarter you had last. >> yeah. >> up 15% overall. >> it was a great quarter. >> why? and does the things that got us here, do they continue in the second quarter? >> well, you know the warning about past performance. but with that in mind, valuations were very attractive coming into the quarter last year, health care's a sector still hasn't recovered fully from concerns over aca also known as obama care and we're just catching up now. i think in the second quarter, we still have a little bit of head room in terms of valuation before it's time to get ready to panic. so i think at least for the second quarter what's happened this quarter will repeat. and as we move towards implementation in '14, you'll see some uncertainty in some of the sectors like managed care, but in biopharma, new products which we've seen a lot of are really driving performance. and they're really great products. . i think we're going to see that the rest of the year. >> all right. doug, now to you where materials did not perform as well. are there still little storm clouds on the horizon? or do you think it's going to perform much better in the second quarter? >> yeah, well, thanks for having me. i would say a fundamental cornerstone of what we do is price, which means the price you pay for something really is ultimately leads to your long-term performance. and we've been underweight the material sector for really the last six months here. and we're starting to see some signs that, you know, price is getting cheap enough that you want to sniff around a little bit. the materials pretty much trade on china for the most part. so when china growth is slow or when people are worried that they're going to have to tap the brakes further, that's bad for material stocks. so that's what's happened. china, i think for the quarter was down 7%. it's not surprising that the material -- >> so you're going to stay underweighted in the second quarter? >> you know, i'd say it's probably about time to start sniffing around. i'll say what happens in materials is not that different to what happened to a lot of other cyclical areas of the market. the really cyclical stocks have embedded a significant discount into the valuations. and the real safe stocks, health care would be one of them, consumer staples would be another have embedded a premium. some of that's bond money coming to equities where people just, you know, scared bond investor buy the equities that look like bonds. we think that's an opportunity. i don't know if it'll play out next quarter, but now is not the time to sell material stocks. >> very quickly then, les, who do you like best? >> well, i hate single best. single best, biotech, biopharma going into the second quarter and third quarter and that would include biogen, gilead and bristol-myers. >> good to see you both. >> thank you. >> have a good second quarter. >> monday kicks off a new quarter. if you could own only one single stock which les hates to talk about, which wall street's top money pros say you need to own? we'll talk about that coming up. >> that's right. a stock-picking panel next. and his new boss told him two things -- cook what you love, and save your money. joe doesn't know it yet, but he'll work his way up from busser to waiter to chef before opening a restaurant specializing in fish and game from the great northwest. he'll start investing early, he'll find some good people to help guide him, and he'll set money aside from his first day of work to his last, which isn't rocket science. it's just common sense. from td ameritrade. it's just common sense. it's not what you think. it's a phoenix with 4 wheels. it's a hawk with night vision goggles. it's marching to the beat of a different drum. and where beauty meets brains. it's big ideas with smaller footprints. and knowing there's always more in the world to see. it's the all-new lincoln mkz. departure. hertz gold plus rewards also offers ereturn-- our fastest way to return your car. just note your mileage and zap ! you're outta there ! we'll e-mail your receipt in a flash, too. it's just another way you'll be traveling at the speed of hertz. all right. the second quarter is set to begin on monday. our panel has the stock to own right now. and sandy villery. chad, we'll start with you, what stock is at the top of your list for q-2? >> i like microsoft. microsoft's trading at 28 and change. they should earn about $2.85. it's consistently growing, consistently profitable, and well capitalized with $8 of cash per share on their balance sheet. so it's trading at roughly at about seven times p/e multiple net cash. it has a 3.4% dividend, and the dividend growth rate is 15%. >> so you get paid to own it. all right. >> absolutely. >> what about you? which stock? >> we like a global petrachemical company. they make plastics and chemicals and 30% of their production is united states. you've got shell gas or continuing cost base of the raw materials going down while expansion of their pricing on a global basis. plastics are in everything, automobiles, housing, food packaging. so stock trades at 6 1/2 times ebitda, got about 2.5% dividend yield, roe at 26% and growing. the stock can continue to grow at 10% to 15% a year. >> you're up for q-2, what do you like? >> i like the ticker conn, they're a specialty retailer of furniture, mattresses, electronics as well as appliances. got about 68 stores, the company's about 75 years old and they're 90% in texas. recently, i did a store tour with ceo theo wright. and i asked him, why on earth would anybody buy an aappliance to you versus best buy or zeros. because you can and you can get credit from us. they can cherry pick their customer that has that 550 to 650 fico score. anything too low end they turn to rent to own. i really like this name a lot. and improving same store sales and return on invested capital. >> got to go. thank you so much, gentlemen. have a great weekend. >> so, we did it, end of the first quarter. >> yay. >> and we can look at these numbers. for the quarter, the dow and s&p finishing at all-time highs. this turned out to be the best first quarter for the dow since 1998. it was almost the best since 1987, not quite. nasdaq, we keep mentioning, up 10%, very good quarter for the nasdaq. far, far away from the all-time highs. yet, susan, it's like we're a bunch of college students on spring break and we've had a wonderful spring break, but we know any moment now -- >> we have to go back to class. >> the cops will come in and break the