but a lot of the market news, because we've had economic data that came out that helped support the rally today. >> that's what it is? it's the tuesday thing, the economic data or -- >> sure. >> even with the markets on such a great running with there are bargains to be had. we want to find them. our week-long series where the pros name their best bargain stocks are kicking off today. stay tuned. two names they say have a ton of room to run. >> and then, you know what may be as hot as the stock market right now? housing. that economic report this morning, case-shiller index came out, showing a huge gain in home prices over the last year. the beleaguered housing market may be driving this economy right now. it may also be boosting stocks. we'll have the latest and find out if this trend can last and what the fed may do about it. >> the dow jones industrial average, as you heard, better than up 200 earlier, now up 102 points, 15,405, last trade on the dow jones industrial average. standard & poor's also -- the nasdaq composite, rather, as you can see, off of the best levels of the session, but still holding ton a 24-point rally here on the nasdaq. let's check the s&p 500 with a similar chart pattern, off of the highs, but still in the green with a gain of nearly nine points. stock market kicking off the unofficial start of summer, with a huge gain. let's get to josh lipton with what's driving this move today. over to you, josh. >> maria, as you guys were mentioned, we are well in the green, but also now well off session highs. the dow had been up 218. now up about 102. you did have that positive economic data today. you saw home prices better than expected, consumer confidence, better than expected, but some traders down here point to that vacillation, as well as this light volume we're seeing on the big board as indicative of really the conviction in this move. now, what's been working today, if you look under the hood in the s&p 500, it's really those cyclical sectors, those economically sensitive sectors. it's energy, as well as financials. you had analysts at moody's change their outlook on the u.s. banking system to stable from negative. what is not working today is utilities. the dow utilities actually now down for four days in a row here, as we see this move from the defensives into the cyclicals. bill, back to you. >> josh, welcome back to the new york stock exchange. we'll be checking back with you as news warrants. let's get to our "closing bell" exchange. in today's exchange, we have michael yoshikami, dan from janney capital markets, peter costa on the floor of the exchange from empire executions, and welcome back, rick santelli, from a well-deserved week off. and when you come back, ten-year yields are at a year-high and that two-year note auction didn't go so well today. doesn't hurt the stock market, though. >> no, and that really is the issue. it might not have hurt the stock market, but maybe it gave us a little taste of what rising rates can go to the stock market or the pressure it might put on the fed to try to clear up what's, to me, very unclear. if we look at two-year note yields, you know, they were 19 basis points on the second of may. they're now at 28. if we -- these are the highest yields, should we close here, bill, since early november of last year. five-year note yields touched 1%. haven't seen that since april of last year. and by the way, beginning of may, they were at 64 basis points. the ten-year at 213, the high yield of the day, that was at 163 on the second of may and also, the highest levels since early april of last year. >> you know, i guess, what i want to do is look back to last week, michael yoshikami, which was a pretty scary week. we had a thousand-point sell-off in japan. a rough day, a couple days here in new york. has anything changed? do you still worry about that sell-off that we saw last week and what that may tell us about what's ahead for this market? >> i'm not concerned about the japanese sell-off. i think it's specific to the japanese market. japan has such a dreadful economy. and they are completely pumping it up with monetary policy. we have a struggling economy being pumped up by monetary policy, but it's nothing like japan, because of demographics. but i do think it really goes to the whole volatility concern that we have going into the summer, that if you have cash in your portfolio, if you're moving into equities, you need to move slowly. there's going to be lots of opportunity to buy. if you have equities that have run, it's time to take some profit. just like we've seen in the treasury market, there's volatility, and so i think you need to be tactical here. >> peter costa, back to maria's point, about last week. you know, we had one day where we had that huge rally, and then a huge sell-off. and for some chartists, that was seen as something as a reversal for the momentum for this market. here we sit today with another 108-point gain on the dow. what do you think the mood of the market is here? >> i think it's data-specific right now. we've had some good data this morning. i think, you know, they're all inter-related. the market being up where it is, consumer confidence being, you know, getting better, and the housing market improving vastly, they're all inter-related. when one person feels comfortable about their economic condition, they're more apt to go out to spend money, more apt to go out and buy houses, and more apt to invest in the market. i think everything is all inter-related at this point. i'm still a little skeptical. i think we're getting very close to a top right now and i'm going to stick with that. i still think we're going to be another 200 to 300 points off the high after that and i'm just going to like lay back and not spend any money. >> yeah. >> is that what you're seeing from customers? do you feel that sort of laggard behavior from some of your clients? >> the institutional customers, they're almost stepping out of the picture right now. that's a sign, they've made their money, they're doing pretty well right now. some are up 15 to 20%, some are higher. they donate see anymore movement on the upside. they're just waiting for any kind of pullback, maybe, to just re, you know, allocate their portfolios a little bit. but right now they're not doing anything. to me, that just indicates that they think we're near a top also. >> but now, dab wan trobski, if i read your notes correctly, the dow in the last four years has gone from almost 6,000 to 15,000 and you think that only now are we beginning a secular bull market, right? >> sure. that's one of the things that we're looking at, on a long-term basis points, we're very bullish on the stock markets. i would agree with the other speakers here, though, that on a short-term basis, things do look a bit frothy, you could see some pullback in the markets. but broadly speaking, we do think we're making the transition here. you're breaking out to new all-time highs at a time when valuations are really at some of their cheapest levels in over the last decade or so. that's one of the hallmark signposts of a new cycle. the other things we're seeing are, you know, they're doing it, equities are doing this against the backdrop of higher rates now, and we think that's a positive as well. and in the meantime, you see the commodities markets underperforming equities as an asset class. we think these types of correlations bode very well for the stock markets longer term. and over the short run, things are frothy. you could have a pullback, but we like the setup. >> but rick santelli, i believe you used the "b" word this morning. bubble, yes? >> absolutely. our last guest, in my opinion, nailed it. basically everything he said is true about valuations, in normal times. because all the history he's using to give us that wonderful research is predicated at a time when markets moved on their own. they moved the fundamentals. they weren't managed markets. and i think that when you look at the context of the liquidity and we can argue about it for days, but at the very least, you need to concede the idea that all of those historic metrics have to have a roger maris asterisk, because if interest rates were at 4%, or 3.5%, i'm not so sure his numbers would have turned out the sign. >> i agree with rick. i mean, if you look at the numbers right now from the housing market, housing market is up, okay, celebrate, but the housing market is up with basically zero percent interest. so i don't think you can really look at the numbers that you see now, even though we think equities will creep higher from here, i just don't see that there's any real justification for huge runs in the stock market going forward, when we really do have artificial times. we have bernanke leaving in february. who knows when interest rate policy is going to look like. >> we have to go, but, dan, you've got to defend yourself, then, after those guys pummeled your premise. quickly. >> i would like to say, everything that was said, yeah, presents a huge wall of worry for the arguments i give, there were five against it, and that's exactly what the stock markets love. i think it's going to take a lot of people by surprise, years from now, the market is going to be significantly higher on the backdrops of a higher rate environment. this is what the market is doing now. it's a discounting mechanism. it battles that wall of worry. there's no adoption from main street. nobody's trading this market. it's levitating on low volume. these, again, are some of the hallmarks of an early stage bull cycle. so we're behind it. you know, we're going to look for a correction like everybody else, but i think longer term, this is the place to be. >> all right. good divergence there. thanks, everybody. appreciate it. we'll see you soon. >> welcome back, rick. all right, let's get to the latest on this train that had derailed in the last hour or so near baltimore. jackie deangelis has the update for us. jack jackie? >> hey, good afternoon, bill. we know that shortly after 2:00 p.m. a cargo train derailment occurred. that was near the white marsh area in maryland. that is roughly about 20 minutes away from baltimore. what we know so far is that six to eight cars are reported to be a part of this csx-operated freight train. preliminary report revealed that several buildings had collapsed just around it. and also, other reports indicate that a hazmat team is on the scene. they are working with authorities at this time to investigate, a, what happened, obviously, but, two, what might have been on that train and also the cause of it. this cause, at this time, not known. meantime, no injuries reported at this time. there are some reports that businesses in the area have been evacuated. and i do want to highlight that csx is a company that provides rail-based transportation services. their headquarters are in jacksonville, florida. csx was trading positive for most of the day, but since this happened shortly after 2:00 p.m., the stock is now down by 1%. you can see from some of the live pictures that we've been showing, there are large plumes of smoke rising from the area. and also, ap reporting that three rail cars could be seen off the tracks. mean, i do want to highlight as well that this is the third incident, the third big train mishap that we've seen in just the last two weeks. so, obviously, this is a developing story and we are following it closely and we will bring you any updates. back to you guys. >> all right, jackie, thank you very much. keep us updated here. heading towards the close, 50 minutes left, the dow up 100 points. was up 213. we need a gain of -- let me get glasses, we need a gain of 184 points to get an all-time high on the dow. >> we were there earlier. well, sell in may and go away? not this year, obviously. the s&p 500 is on pace for the best month of may since the 2004. but somebody here says the party is about to end. the bearish case for the summer swoon, coming up. >> and if you thought tax hikes out of washington have been covered earlier this year, think again. now there's talk of a new airline travel tax. we'll talk to some people who warn, this could end up grounding the resurgent airline economy, even the economy. >> and he correctly predicted six brands that would disappear in 2012. which brands will be extinct before the end of the year. that's coming up on "closing bell." but we can still help you see your big picture. with the fidelity guided portfolio summary, you choose which accounts to track and use fidelity's analytics to spot trends, gain insights, and figure out what you want to do next. all in one place. i'm meredith stoddard and i helped create the fidelity guided portfolio summary. it's one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open an account. ♪ je t'adore ♪ c'est aujourd'hui ♪ ♪ et toujours ♪ me amour ♪ how about me? 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[ male announcer ] add a wireless receiver. call to get u-verse tv for just $19 a month with qualifying bundles. rethink possible. welcome back. quick correction. we need to be up 84 points for the dow to be in record territory. so we're there now. we're not 184 points. i got a bad number before. all we need to be at is 15,387 to be at an all-time high. just to we're all on the same page there. meantime, president obama making a return to the jersey shore as it opens back up for business this summer, following, of course, the horrible devastation last october from superstorm sandy. nbc's peter alexander is in asburry park with what the president saw today. peter? >> reporter: bill, gad to visit with you. the president already en route back to the white house after really was lake a three-hour trip here to the jersey shore, as the mayor of asburry park told me, we survived sandy, we can handle rain like this. it's just a nuisance. and with that rain coming after them, both chris christie and the president strolled down the boardwalk, not far from here, in point pleasant. optically, it was as striking to see the two of them together. republican and democrat rivals in some ways walking side by side, as it was to see the optics of the recovery that's been taking place here. the president tried to deliver a very clear message, not just to the people of this community, to whom he said, you are not alone, but also, to all americans, speaking in some sense, as if he was a one-man new jersey tourism board, saying we are open for business, we need you to come on down. new jersey is ready to welcome you back. already, there are 22 of 23 boardwalks open in this area. the memorial day holiday. everyone we've spoken to said was a good start, but they still acknowledge there's a long way to go. maria? >> all right. thanks so much. we'll keep watching that, peter. meanwhile, back in washington, the obama administration proposing a $28 tax increase for round-trip airline tickets. the airline says it needs the money to cover infrastructure and security costs and also to reduce the federal budget deficit. >> cnbc contributor carroll roth is not a fan of the idea, but george hopeka says that money is needed to get our airports into the 21st century and i welcome both of you. george, make the case. why do we need this tax increase? >> well, bill, i think that those who fly should pay for the infrastructure of the airline industry. and another key point, bill, is that the faa has lost $1 billion in taxes, because instead of raising airfares, the airlines have increased fees. and those fees are not subject to the 7.5% excise tax. >> carol, how are you going to pay for this? we all complain about the infrastructure, but nobody wants to pay for it. >> listen, maria, already on a ticket of $300, it's estimated that we're paying $60 in taxes. there's so much inefficiency and there's so much waste in the system already, i feel like the money's there, it just needs to be used more efficiently. there is a tax called the essential air services tax. $200 million that we're keeping open, airports in rural areas, sometimes with one gate, two flights a day, so that people don't have to drive a couple hours to the closest airport. take $200 million from that, put it into these other things that need to be done. i think that that gets it done. >> what about that, george, these charges of inefficiency. >> there's probably no doubt, bill, that there is inefficiency and waste in both the faa and the tsa. i'm not sure if that is really the issue, though. i think we do need the extra revenue, and, again, if the tsa is only funded 50% by people who use airports, the other 50% is paid for by the general taxpayer, and i just wonder if that's fair. i think that is the essential question. >> the inefficiency is 100% the issue, if we keep raising taxes and we keep with the spending, there is no incentive for us to get this under control. if you're -- >> but you have to admit, carol, there are fewer flights now than there were after 9/11. it's a smaller airline industry, less money is going toward the faa. look at the quality of the technology that's being used or not used, in this case, for the air traffic controllers out there around this country. i'm not trying to carry george's argument here, but you have to admit, that there is a -- >> bill, you're absolutely right. >> here's the point, bill, i understand that, and if you want to charge me an extra buck for the airline controllers, fine, but a lot of this money isn't even going towards these kind of improvements. it's going to quote/unquote, pay down the deficit. it's going to tsa theater. it is going to a lot of things that are inefficient and wasteful. and the only way we're going to stop it is to stop the spending. it's gotten completely out of control and it's an insult to the american people to continue to tax them like this. >> i think the bigger issue is, who does this impact and what kind of an impact is this going to have on our economy. and we're talking about the idea to get back to growth, george. how do you get back to growth if, in fact, you just keep piling more expenses on the average guy out there. we know that anybody who flies is not just going to be the rich, it's going to be a big swath of people, and those people are going to have to do more with less, because they're focused on this additional tax. >> that's a good point, maria, but talk about inefficiency, one of the greatest inefficiencies in the airline industry is our air traffic control system. and the next gen gps-based system has been put off year after year, because of a lack of funding. a new york city taxi cab has a better navigation system than the airplane you're riding in -- >> but is this the answer for everything that's broken? go -- just tax them more? >> i think we need to improve -- >> in washington, it certainly is. >> i think if we improve our air traff