112 points, 0. 75 of 1 . Nasdaq picking up steam at 3952. And s p 500, a new alltime high for the Standard Poors of 1771, just under 1772, with a gain of about 10 points. Another day, another record for the s p. The dow also hitting a milestone of its own. Bob pisani running through the numbers. Green on wall street today, ahead of the twoday meeting, bob. Yeah. We just hit the closing record high for the dow. 15,676, thats what we had to get over. Put the board up. We made it by four points. Also new highs on all the other major indices, s p 500, dow transports and small cap russell 2000 at new highs. Weve been describing this as the great stock sector rotation. That is every day a new sector moves forward, another falls back. The largest sectors in the s p 500 are financials, tech and health care, in that order. Look all three are up roughly 5 . These three sectors are 50 of the s p 500. You see what i mean . One falls back, the other one moves forward. These are other im just showing you the these largest ones. All sectors in the s p 500 are up at least 10 on the year. We have earnings, were in the middle of earnings season, a number of big companies, johnson control, massco, think cabinets and kitchen faucets, excellent report overall. A very tough time in the trucking industry. Cummins had a very, very poor report which weighed on paccar. Weve had warnings in the tech industry, particularly semiconductor. Pmcsierra, guided lower. Sanmina beets with jbilt, guided lower as well. Double digit declines. Overall, earnings still coming out better than at the start of the quarter. Were up about 4. 5 in the s p 500. Thats still record earnings. Thats for the quarter, year over year. Back to you. I think thats great news, bob. Thank you so much, bob pisani. To join me about investing and equities and beyond amy wu from rbc Capital Markets, jim lowell, cimino and Rick Santelli. Amy, recordsetting day. Is it warranted in your judgment, or are the fundamentals backing up this move into equities . Hi, maria. Well, i would love to tell you the Options Market is telling you theres this great big bad inflexion point but were not seeing it, even in the Options Market. We do see volatility ticking up a little. Skew, tick up a little. However, youre still seeing massive call buying in health care, technology and it tells you investors dont have much fear even as we head into the fmoc meeting coming up soon. So, not that much fear. Thats basically telling me that you think this market, based on what youre seeing in the Options Market, has legs. The rally has legs. Yeah. And the funny thing is, even as we continue to rally, investors keep asking for different ideas to be expressed through options via laggards or names with short interest. Instead of asking for different kinds of protection structures, theyre looking for different ways to express upside through leverage, via the options. Really interesting. Jim lowell, how do you make money in stocks right now . Technology, health care, consumer discretionary, as amy said, look like three leg on the stool that do have some support. Also in the fundamentals. Im not worried about peaks as much as valleys. Thenchairman greenspan said 9600 was exuberance. If you missed the peak between then and now, you would have missed the best peak in history. Fundamentals are reasonable and we think as long as the consumer remains relatively strong, and all indications are that they remain relatively strong, businesses can profit. If businesses can profit, so can investors. A twoday meeting happening at the fmoc. Rick santelli, what if anything will we learn from the fed tomorrow . I dont think were going to learn of any significant changes. I think, you know, the game is afoot. You know, the divorce decree between irrational and exuberance is in full force. It seems though investors are concentrating on the exuberance. The irrationality goes under the radar screen. Quite frankly, maria, looking at this stock market, i dont see this game ending any time soon. The issue is, is that at some point, even though its the only game in town, if you get enough traders going from the long side to the short side in a quick period of time, the stock market will list. Just like right now. Anybody missing this is going to jump on, as our guest pointed out, looking for any stocks that may have metrics that arent over the top. But, you know, we just keep marching along. I dont see that were going to be talking about anything significantly different between the fed, the equities for the rest of the year. Maybe into the First Quarter of next year. Well, thats the word. I mean, on the street. A lot of people are not expecting any kind of tapering, at least, until 2014, possibly even june, mid2014. Guys, stay right here. I want to get to dom right now because yelp is out with earnings. We have another look at earnings. Yechlth yelp, Online Review site out with earnings. The estimates, again, earnings per share came out with a fourcent loss. A loss muof four cents per shar. Analyst estimate was a loss of a penny. The loss, worse than expected. Sales did come in slightly better. Sales of 61 million. Analysts were expecting about 59 million. You can see that theyre very much keying on that wider than expected loss. Although yelp says yelp mobile was a bright spot. 62 of all searches on yelp were done on a mobile device. Overall, you can see shares down 5 , 6 in aftermarket trading. Thank you so much. Samir, let me turn to you in terms of earnings. Are you impressed with what youre seeing . Ill tell what you im hearing here. There are a lot of different people, whether its ceo level or policy level, investor level here, and most everyone is complaining about the manipulation of interest rates. They say, let rates go back to where they should be. The argument Rick Santelli has made so many times on this program and on cnbc. Samir, your thoughts on earnings as well as where we are in terms of monetary policy. In terms of earnings, you know, youre seeing the same story thats been playing out over the last few quarters, revenues coming in light and earnings that are beating. The problem is those estimates get a rise below those companys reported earnings so a little game the analysts play with the companies. In our opinion, i think really youve got to, you know, above all focus on the trend. The trend is higher in stocks. Right now its higher in bonds, too. You rebalance, do the less exciting stuff. You make sure you have a little cash so you can take advantage of the next opportunity. At this point its too early to fight the fed and fight the trend. So you dont want to fight the fed. That means be in there, buy equities. We heard some of the sectors doing best right now. Where would you put money to work . You know, some of the opportunities seem to be more on the materials and maybe even energy. Because youve seen Commodity Prices come off a little. Could be theres a little seasonality because Energy Prices tend to firm up into the winter, especially natural gas, and materials would follow a little, too, if growth were to firm and those commodities do well. Does anybody on the panel think this market, the way we are in record territory, does not have legs . Is there a cautionary tale to talk about going into year end . Well, i think its a game of expectations, so i would definitely caution investors who are going to be looking at spectacular fiveyear returns, heavily promoted from mutual funds one after another to not assume the next five years will deliver the same kinds of spectacular gains. Definitely be significant bumps in the road. Were looking at world war ii coming down the pike from d. C. That will add volatility to the mix. So far, buying on fear rather than selling on fear has been a better way to build your wealth. Maria well leave it there. Thanks, everybody. Appreciate it. Yep . We would be more worried if stocks were overvalued and rates at normal levels, not current levels but normalized levels would put a dent into multiples. Even normalized rates would not make the stock market seem expensive. Its a little too early. Valuations there. Thank you, everybody. We appreciate it. Want to take a short break. Much more ahead on the allstar edition of closing bell. Hank paulson with me exclusively next. Paulson was instrumental in driving the car five years ago, driving the car toward recovery. Well get his thoughts on where we are five years later. Also his reaction to the news of the day that proposed 13 billion settlement with the Justice Department on the verge of collapse over at jpmorgan. Also Goldman Sachs Ceo Lloyd Blankfein who was a key player in the mortgage meltdown. Well get his take on the debacle of the day. Also ahead if you like your health care plan, you will be able to keep your health care plan. Period. Well, not really. Nbc news breaking a story today that the Obama Administration knew for years that Many Americans actually would not be able to keep their existing Health Insurance under obama care. Lisa myers, who broke the story, we are going to be talking with her. The story that everybodys talking about. Shell join me next. Youre watching the closing bell on cnbc, first in business worldwide. Opportunities arent always obvious. Sometimes they just drop in. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. Welcome back. More earnings out. Linkedin, over to dominic chu. From 4 to 5 down in the market to a flash. After the company, the worlds biggest professional networking firm, said sales came in at 393 million, better than estimates, and earnings 39 cents a share, better than estimates. Downside pressure applied as Fourth Quarter and full year sales outlooks coming in below analyst estimates. One thing that might be a positive, why the stock is getting back to flat or slightly positive is that subscriber numbers or member numbers coming in better. They had 259 million members last quarter, beating analyst of 254 millions. A jumpy trading session so far for linkedin. Back to you. Thank you. Nbc news breaking the story today that the Obama Administration has known for three years that Many Americans could not keep their Health Insurance under boom obama care. Quite the opposite of what president obama continued to promise. Were joined by lisa myers, nbc news Senior Investigative correspondent who broke the story. She joins me with the latest. What can you tell us . The white house today in the briefing seemed to elaborate on the president s initial promise and put in more qualifiers. Basically what we found is in the individual market, the place where people buy their own insurance policies, its only about 14 million americans. These are the folks who have been receiving all these cancellations notices. If you look back in the obama care regulations, it says in there they expect that 47 to 60 of the folks in that market will not be able to qualify for grandfathering, which means they wouldnt have been able to keep their plan if they wanted to. Which as you know was a cornerstone of the president s ability to sell this policy. So, in other words, are you i mean, you cant i dont think youre saying that this was sort of, you know, an evil plan that they had, that they were going to come back to you later and this is all going to come out, but they just didnt say everything they didnt know at the time . What are you saying exactly, lisa . What im saying the president was trying to sell the policy. There was a lot of scare mongering. One thing he did to reassure people was to say, everyone can keep their doctor. Everyone can keep the insurance they have, if they like it. Even if its not as good as were offering you under obama care. The problem is, its just not true. They knew in their own regulations that a lot of folks would not be able to do that. The president should have said, the vast majority of people will be able to keep their policies. Or, you know, the majority of folks will be able to keep their doctors if you want to. Right. So this was partly just to sell the plan . It is to sell the plan. And everyone acknowledges. Now, the white house is saying, look, the people who lose their insurance, by and large, had lousy insurance that wasnt going to be there when we needed it they needed it. What were offering them and what obama care does is raise the quality of insurance so what theyll be forced to buy now is much better quality, it cant be taken away from them, and it will protect them in the event of some horrible illness. Right. The problem is, its much more expensive. It is. A lot of folks are having sticker shock. Again, in the individual market. 80 of americans get their insurance either through their employer or through medicare or medicaid. Theyre not impacted by any of this. Were talking about this narrow segment. This is a vulnerable segment. Theyre selfemployed, people who retired early. You know, people who dont have a big employer to help them pay their costs. Some will qualify for subsidies, but many of them wont. Exactly. Lisa, good to have you on the program. Congratulations on the breaking story. Thank you for your courage in reporting. Thank you for having me. Lisa myers joining us live. Back from the brink, hank paulson who helped implement policies to stem the worst financial crisis any of us have seen since the great depression. Hell talk with me exclusively next, where we are pooif years later and the story about the possible collapse of the jpmorgan settlement with the Justice Department. Ill also be joined by Goldman Sachs Ceo Lloyd Blankfein. Well talk economy, banking reform, regulations and companies he sees breaking new ground, including twitter. In a world thats changing faster than ever, we believe outshining the competition tomorrow requires challenging your Business Inside and out today. At cognizant, we help forwardlooking Companies Run better and run different to give your customers every reason to keep looking for you. So if youre ready to see opportunities and see them through, we say lets get to work. Because the future belongs to those who challenge the present. announcer at scottrade, our cexactly how they want. 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Our priority is, was and always will be serving you, the American People. So we improved Priority Mail flat rate to give you a more reliable way to ship. Now with tracking up to eleven scans, specified delivery dates, and free insurance up to 50 all for the same low rate. [ woman ] we are the United States postal service. [ man ] we are the United States postal service. [ male announcer ] and our priority is you. Go to usps. Com® and try it today. Welcome back. Jpmorgans massive 13 billion reported settlement with the government is reportedly in jeopardy. Want to get to kate kelly with the details. There spaernl a Sticking Point in this 13 billion settlement discussion between the Justice Department, jpmorgan and a couple other parties. The issue is, who is liable for the Washington Mutual loans gone sour . Wamu acquired by jpmorgan in the heat of the financial crisis. And there is lingering uncertainty, im told, even in the contract of sale document, as to who is responsible for future wamu loans going sour. Is it jpmorgan, the buyer, or could it ultimately be the federal Deposit Insurance Corporation . The dispute could ament to billions of dollars in exposure. As you discussed earlier in an interview, it could be bad publicity on one hand for the jpmorgan to go after the fdic, but very expensive if it does. There are language disputes over how to handle this in the settlement. While talks have not fallen apart, its a key issue in resolution. As were looking for resolution by the end of the week but its unclear as they continue to muddle through and try to come up with some terminology that everyones comfortable with. Kate, thank you so much. Kate kelly with the latest there. As weve been telling you, we are live today in chicago from the Paulson Institute financial crisis symposium. With me right now, in a cnbc exclusive, is former treasury secretary hank paulson. So good to see you, secretary paulson. Its good to be here. Thanks for putting this together. Its amazing to see where we are today versus five years ago with really most of the Major Players that youve assembled here. I want to ask you about that in a moment. Let me goet your take on this news of jpmorgan deal possibly collapsing. I know all you know about is what youre hearing, but the hangup is this Washington Mutual end of things. A deal that you were obviously helping to broker . Well, i was involved, but not nearly at that level. Because, again, what i know is what i read and what i just heard. And apparently the difference is over what the agreement between the fdic and jpmorgan says. And, again, lawyers are going to have to resolve that. I have no idea what that what that agreement says. You know, i thought it was really interesting on the panel today, both barney frank and others, both said, look, it would and rahm emanuel. And rahm emanuel. Both said, it is disingenuous or, you know, unfair for jpmorgan to be paying for the problems that it did not commit. Perhaps it was bear stearns, it was Washington Mutual. Well, again, i had made the point on a number of occasions that if bear stearns had gone down, there would have been a disaster. I think it was essential that they be acquired. We didnt have legal authorities to deal with at bear stearns unless there was an acquisition jamie dimon to make it. Thats really all i said. I said it showed great courage. You know, and he had done that. I wasnt getting into the legal issues. I wasnt getting into how beneficial this deal was or was not for jpmorgan. I knew that jamie wouldnt have done it if he didnt think it was a good deal for his firm. But we wanted him to do that. Barney frank and rahm emanuel went a bit further today. They really did. They really did. And back then, if jpmorgan had not acquired bear stearns, what would the implications have been . Oh, i think it would have been horrendous, because i think lehman would have gone down right away. It would have gone down earlier. And we hadnt yet stabilized fannie or freddie. So, i think it would have started a disasterous chain reaction. I just hate to imagine what would have happened. And then there was merrill lynch, and then there was Morgan Stanley and then yeah, absolutely. So, i mean, you asked jamie dimon to do this, because they were the strongest player . They were the strongest player. I think they were the only one, maybe one of just a couple that could have done that. And jamie was not only were they not the strongest player but jamie was a very strong ceo that had the confidence of his board and was willing to step up and make an acquisition without time to do all of the Due Diligence, without time to have a standard contract, all of those kinds of things. And so, again, he did that. B again, the story wasnt about bear stearns. Its about wamu. Wamu is a different situation all together. From what people are saying and what im reading, that comes down to what the fdic and jpmorgan agreed to and what the legal documents said when they make this acquisition. Theres also this talk about opening the door to criminal charges. If we were ever in this disaster again, do you think another bank is going to say, sure, ill make this acquisition, ill put myself on the line, even though i dont have any time to do the Due Diligence . Im not going to speculate on that. I think hopefully we wont be in a disaster like this any time soon. But, clearly, you know again, i cant get into everything that was motivating jamie. I assume he believes that made sense for him to make the acquisition. But im you know, im glad given how essential it was for him to make that acquisition, im glad he didnt see the way this was going to play out in all its gory details. Let me ask you more about where we are today. Five years after the financial crisis. What worked i mean, it feels like t. A. R. P. And your leadership in retrospect was so critical. The stress tests. Walk us through some of the things that were critical in terms of getting us back and what we still need to do. Well, again, what we had today, this was bipartisan, something david axelrod, who has an institute next to mine, the institute of policy and the Paulson Institute, put on jointly. And we had leaders from both sides. We had chris dodd and barney frank, we had judd gregg. We had Larry Summers and we had ed eddy lozier. I think what worked best was the bipartisan support in congress and the way people Work Together across the administration, the way democrats and republicans Work Together, the way george bushs leadership, the outgoing president , the tough decisions he made, barack obama and john mccain did you know, were supportive. And so that was the positive things. And the Capital Market stabilization programs that were put in place worked. They worked very, very well. The bank capital program, which led the logical extension of which was the stress test. So, you had policy continuity across administrations. And the Obama Administration took the Capital Market stabilization programs and made them work. Now, what hasnt been done and today we have Financial Markets that modern Financial Markets that are the best in the world, broadest, deepest, most efficient Capital Markets in the world. The banks are safer. Theyre better capitalized, better regulated. Leverage is down. Leverage is down. All of those kinds of things. Now, what hasnt been done very importantly we havent corrected many of the flawed Government Policies that got us where we are. You know, this was all about housing. And we overstimulated Residential Housing for many, many years through, i think, a flawed set of policy initiatives that were all designed for a good purpose, to promote homeownership, but had you too much of that. And fannie and freddie were at the vortex of the crisis. As important as anything we did during the crisis to stabilize the markets and to prevent it from getting much worse, was stepping in and putting fannie and freddie into queconservato p conservatorship. But that was a timeout, to restructure them, to reform them. And today theyre bigger, stronger than ever. And the government in the form of fannie or freddie or the fha is ensuring almost 90 of all residential mortgages. Fannie and freddie still ensuring 90 not still. More, much more. Its not fannie and freddie. But fannie and freddie and the fha. Fannie and freddie, 80 , but much bigger. If the government is subsidizing mortgages, that means the government is setting price and terms, and were setting ourselves up for other significant problems looking way out into the future. And so we what weve talked about that, we talked about a number of things. But to me, the biggest thing that really needs to get done is to get our economy growing again. So that its growing right now the economy is growing. Thats a plus. But it needs to grow faster. It needs to be more competitive if were going to create the kinds of jobs we need. And only when we create those jobs and get the economy growing are the American People going to be less polarized. And some of the anger going to dissipate, which again is going to help our political system work better. Well, thats really an important point, the anger. Here we have a day where you brought together both sides of the aisle. You mentioned some of the people. Youve been able to bring democrats and republicans together to talk about what went wrong, what still needs to be done. And yet our leaders in congress and the president today, they dont even talk. How are we going to come up with solutions to grow this economy when they dont even talk . How do you grow an economy . Whats most important in getting back to sustained and higher growth levels . Well, first of all, the private sector grows the economy. Not the government. The private sector. And lets look at the positive. Our companies are run much better than theyve ever been run. If you look across the corporate sector. And theyre outperforming the government. But we need some Government Policies to let us be more competitive. Like what . We need a new tax system. We have a flawed tax system. Individual tax system, Corporate Tax system. We need real Serious Health care reform to deal with some of the fiscal problems that are coming down the road. We need we need a new immigration system. So that theres a good number of things we need to do. And the only way you get those done is with a compromise. Democrats and republicans have to come together and compromise, but the leadership for that always needs to come from the president. Because the only way you get big difficult, complex things done is from the executive branch and with congress being willing to compromise. Was dodd frank the right legislation . How come only 40 has been implemented . Well, theres a lot of good with dodd frank. We got the things we needed out of dodd frank. Why is only 40 been implemented . Well, its a big, complicated bill, but we have too many regulators. We have five everybody wants to weigh in. We have five regulators all fighting with themselves on how to write the rules. Thats one of the reasons. The other reason is our nation is to polarized that its very difficult in congress, so you cant makes it very difficult to go back and get the technical corrections you need to make it work. But it will get done. We will get through this. We will adapt. Thats sort of the nature of our system. When theres when theres a problem, we shine a light on it, we move quickly to clean it up. The pendulum swings too far, it always does, but then it comes back again. So, im optimistic well make that work over time. But i what is more important is getting our economy growing again. Thats what we need to do. The private sectors doing their part. Now we need the government to do their part. The only way we can do that is, republicans and democrats working together. Secretary paulson, thank you for continuing to have an important voice in this. Thank you for your time. Hank paulson joining us. Up next, view from lloyd blankfe blankfein how far weve gone, jpmorgans ongoing battles, obama care, and his new deal, ipo of twitter. Tdd 18003452550 trading inspires your life. Tdd 18003452550 life inspires your trading. Tdd 18003452550 where others see fads. Tdd 18003452550. You see opportunities. Tdd 18003452550 at schwab, were here to help tdd 18003452550 turn inspiration into action. Tdd 18003452550 we have intuitive platforms tdd 18003452550 to help you discover whats trending. Tdd 18003452550 and seasoned market experts to help sharpen your instincts. Tdd 18003452550 so you can take charge tdd 18003452550 of your trading. vo you are a business pro. Maestro of project management. Baron of the buildout. You need a permit. To be this awesome. And you. Rent from national. Because only national lets you choose any car in the aisle. And go. You can even take a fullsize or above, and still pay the midsize price. aaron purrrfect. vo meeeow, business pro. Meeeow. Go national. Go like a pro. Welcome back. Goldman sachs is holding its builders and innovators conference in arizona, a unique event where it brings together what they call the 100 most Disruptive Companies they want to work with and talk success in the future. We are joined right now, julia is at the conference, joined by the chairman and ceo of Goldman Sachs, lloyd blankfein. Thank you so much for talking to us today. Julia, thank you for being here. Your second year gathering 100 entrepreneurs. What do you get out of this conference . This is what we do for a living. We get together the people who need capital, who have great ideas whoucti ideas, who are looking to build their companies, improve it, contribute to the economy. We get to learn their businesses. We get to help them organize themselves, finance themselves, relate to other players. And ultimately down the road, well hopefully get to finance them and bring them to market. It translates to new clients and deals . New clients for us, but i think it translates for the country to new businesses, new jobs, new growth. So, what are the themes . Where are your Key Takeaways so far . Well, i think one of the takeaways is just the level of enthusiasm, the level of brilliance, the opportunity set available to people now. I tell you, we spend so much time wallowing in negative sentiment in this country, frankly, around the world. I tell you, you couldnt hold onto that negative sentiment for too long if you listen to the people we assembled here. Maria . Yes. Lloyd, let me ask you about the twitter ipo. Everyones anticipating this big, hot deal. How important is being the lead underwriter for such a hot company thats in the news every day . Well, in general, maria, im not going to talk specifically about a deal thats in the market right now. But as you can assi you can realize, we have a big franchise in bringing companies to market. We invested a lot in our tech franchise specifically. Of course, any time we go in there, it becomes very, very important for the market. Very important for the company, obviously. Its most important corporate event most important event theyll have to this point. We to want do a great job. We like to keep doing a great job for these great companies. Lloyd, were seeing snapchat and pinterest raise money at 1 billion. Do you think were in a bubble . I debate the predicate of your question. Time will tell if they have Sustainable Business models. Obviously, people are seeing great value in what these companies are contributing. Some of these companies will make it on their own. Some will make it on their own for a short time. And then be acquired by other and make contributions to Bigger Companies or become divisions and their technologies will be additive to other existing companies. But my definition of making it includes both of those. And do you think that the ipo market is robust . Whats your outlook for the ipo market and valuations for these types of startups, including twitter . The ipo market is alive and well. We have high equity prices at the moment now. We have an economy thats growing. People would like it to be growing at a faster rate but no doubt its growing. Huge pools of cash have been sitting on the sidelines as companies and people, by the way, have deleveraged. And the idea flow is terrific. So, i think this has been a great time for companies to come to market. By the way, theres a great time for entrepreneurs to source financing even away from the Public Markets. One of the things thats driving the ipo opportunity now is that in the last few years, the source of private capital had been so great that these companies have been able to get initial funding. Again, away from the Public Markets to get themselves into shape for going public. Maria . Let me ask you more about that, lloyd, because it certainly is an important point to make, this entrepreneurialism were seeing take off across the country. What else is different today than five years ago . Were coming to you today from chicago and the site of Hank Paulsons financial symposium, looking at the Financial System five years later. You were there in the throes of the darkest days for this country and then the resulting worst recession any of us have ever seen. How would you characterize where we are five years later . Well, id say for one thing, just to give you a context, i think five years ago, if you were to have forecast the that we would be where we are today, we wouldnt be nearly so as glum as sometimes the Business Press is and sometimes the pundits on your show wringing their hands about how miserable they are. When you think about how far weve come from those days, thats quite far. Thats not to say we dont have a way to go, but every once in a while being realistic in the market, being overconfident in the market, and five years ago was a testament to being overoptimistic and the leveraging that occurs as a result of that overoptimism, but i will tell you theres no great advantage to being overly pessimistic and not realize the blessings we have in the market today, especially, by the way, in the United States. Again, where the markets are good, as i heard what hank had to say before, that for all the sturm and drum, all the noise, all the tension and all the, frankly, important issues surrounding clearing up some of the legacy issues, a substantial amount of work was done, the Capital Markets are in great shape, deleveraging has occurred, add to that the blessings we have from the Energy Situation in this country, and i think you have a good formula for growth going forward. Can you characterize the extent, though, of the expense of regulation . I mean, here we are all day and all week talking about this potential 13 billion deal with the Justice Department that jpmorgan is going to do, which might be collapsing as we speak. The point is even as we see corporates across the board see their profitability go up, so too has the amount of money theyre spending on regulation and on litigation. Look, im hoping that what were living through is a moment in time and always a moment in time. The country came through a very big trauma. If i had to you know, if you lay it out, would you think that in reaction to the trauma and the recency of the events and the fact these things have gone on and the residual of those events were still living with, that the remedies might be a little bit more severe, a little bit redundant to where ultimately it will settle as that pendulum swings back again. Now, maybe im being overly optimistic but i think it was predictable after such a big reaction after such a big trauma, the reaction would also be excessive and that eventually wed come back and it would find its natural place, as people got a little more clinical and less emotional about the proceeding events. I understand why we are where we are. Listen, i grew up trying to separate the emotions of the markets from what the reality is. Eventually, the emotion is a big sign wave that operates around reality. Eventually it will catch up. If, in fact, we are going too far, then people will want it to go the other way. People will say, youre not funding enough, not taking enough risks. I bought a lot of security and a lot of safety. You know something . Im at the wrong point on the curve. I would like to have more economic activity. I think that will come. Let me get your take on something larry fink just told me, lloyd, because he is worried about the derivatives part, opening up transparency of derivatives on exchanges. He says that may very well lead to the unraveling of the Financial System again, because you look at all the glitches we face on all these exchanges. How dpou believe the opening up of derivatives and making them more transparent on exchanges is going to impact your business . And do you worry that, in fact, the system is not ready . Well, theres a little bit were seeing systems problems in all walks of life now. Lets say we get past that. The overall consequences look, theres were responding to a set of negatives. And the unintended consequence will produce a new set of risks. For example, Clearing Houses which i think are a good thing and a terrific thing that we take some risk out of the system by having everybody going through Clearing Houses. Ive said this before, i think that will reduce the risk of the 20year storm. But what happens in the 40year storm or the 50year storm is that is so severe, it puts the Clearing House at risk . Boy, thats a lot of concentrated risk atn one place at that point. Just like that argument pops up in another context. Big Financial Institutions versus little Financial Institutions. Theres no doubt the bigger, more diverse Financial Institutions were actually safer for most events, but if you get an event thats so severe to put one of those very big Financial Institutions at risk, well, all that risk has been squeezed into a particular corner and then it looks worse. And so youre going to have to the market is going to have to calibrate these things. I think larry and others are doing a service to bring up these risks. We do that. We think as experts in the field we dont make the decision 6 where we should be on the risk reward continuum but we think we should bring it to peoples attention what these risk rewards are. Back to the conference and the further, i know you cant talk about dwiter but if theres a theme of companies you would point to that are the next big thing that our viewers should be aware of, what is it . A lot of these things are disruptive in some ways, as maria characterized in the beginning, but a lot are ordinary things and needs that are just being done better, distributed more efficiently and to a wider audience. You know, everything from healthy snacks to energy systems, distribution of pharma, and i should say 10 of the companies that are represented here are in the social sphere. So, barbara bush just talked about her company. We have companies that lend in microfinancing, important entrepreneurs. Jake wood from team rubicon who is talking about employing veterans, good for veterans and the communities in which they operate. Weve had mayors mayors landrieu from new orleans was talking about entrepreneurialism from the political sector. By the way, a sector not associated with entrepreneurs. Doing great work. I think theres a lot to be cheery about. Unfortunately, we have to leave it there. Thanks so much for joining us. Lloyd blankfein. Maria, back to you. Lloyd, thank you so much. Julia, thank you as well. Take a short break and then Dreamworks Animation among companies releasing earnings after the bell tonight. Well give you a check. Turbo took in 246 million worldwide. Well see if the film super charged earnings and take a look at what else is moving in the afterhours tonight. Thats why you take charge of your future. Your retirement. Ameriprise advisors can help you like theyve helped millions of others. Listening, planning, working one on one. To help you retire your way. With confidence. Thats what Ameriprise Financial does. Thats what they can do with you. Ameriprise financial. More within reach. Welcome back. Earnings coming fast and furious after the close tonight. Over to you. Thanks. Linked in is on a roller coaster ride. The company gave guidance well below street guidance. It also said monthly users rose 38 from the same time a year ago to 259 million members. Also yelp jumping around lower. Sales rose to 68 million. After hours the Company Posted better than expected earnings and guidance overall. Looks like the animations did pretty well. Big day ahead in the markets tomorrow. The fed, a hailstorm of earnings. Game plans next. Were back in a moment with more closing bell. Thats correct. Cause im really nervous about getting trapped. Whys that . Uh, mark . Go get help i have my reasons. Look, you dont have to feel trapped with our raise your rate cd. If our rate on this cd goes up, yours can too. Oh that sounds nice. Dont feel trapped with the ally raise your rate cd. Ally bank. Your money needs an ally. [ male announcer ] what if a Small Company became big business overnight . Like, really big. Then expanded . Or their new product tanked . Or not . What if they embrace new technology instead . Imagine a companys future with the future of trading. Company profile. A Research Tool on thinkorswim. From td ameritrade. Even when we cross our ts and dot our is, we still run into problems. Thats why Liberty Mutual insurance offers accident forgiveness if you qualify, and new car replacement standard with our auto policies. So call Liberty Mutual today. And if you switch, you could save up to 423. Liberty mutual insurance. Responsibility. Whats your policy . Welcome back. The dough aw and the s p 500 cl at record highs. We have 30 seconds on the clock to look at tomorrow. Joining us tomorrow is lathe. What do you want to prepare for . For the fmc meeting tomorrow, we dont expect any change in the feds policy given the weekend preliminary report last month and the change of the guard going on in the federal reserve. We have the adp and political report. The consensus looking for a gain of only 138,000 private jobs. The adp reported weaker growth and the employment report was only 148,000. All right. We will leave it there. Thank you so much. We will see you soon. Another banner day. We will take a short break and give you more on todays action. Stay with us. Peace of mind is important when youre running a successful business. So we provide it services you can rely on. With centurylink as your trusted it partner, youll experience reliable uptime for the network and services you depend on. Multilayered Security Solutions keep your information safe, and secure. And responsive dedicated support meets your needs, and eases your mind. Centurylink. Your link to whats next. The ocean gets warmer. The peruvian anchovy harvest suffers. It raises the price of fishmeal, cattle feed and beef. Bny mellon turns insights like these into powerful investment strategies. For a university endowment. It funds a marine biologist. Who studies the peruvian anchovy. Invested in the world. Bny mellon. At a ford dealer with a little q and a for fiona. Tell me fiona, whos having a big tire event . Your ford dealer. Who has 11 major brands to choose from . Your ford dealer. Whos offering a rebate . Your ford dealer. Who has the low price tire guarantee, affording peace of mind to anyone who might be in the market for a new set of tires . Your ford dealer. Im beginning to sense a pattern. Get up to 140 in mailin rebates when you buy four select tires with the Ford Service Credit card. Whered you get that sweater vest . Your ford dealer. Big day tomorrow. We have the results of a two day fed meeting. Take a look at the market. We finished at all time highs on the dough and s p 500. New all time record closing high for the dow. S p 500 was 1771. All three major averages on the up with side. Stay with cnbc. Fast money begins right now. Live from the Nasdaq Market site this is fast money, americas post market trading show. Lets get straight to our top story tonight and that is the record highs in the market. Both the dow and the s p 500 closing at all time record highs. Guy . Hi there. This is unbelievable. Thats the energy. It really is. Peopee