100 points off. Russian president Vladimir Putin not holding back in that exclusive interview that you saw here this morning on cnbc, telling a global audience that sanctions imposed against his nation for russias actions in ukraine will in his words boomerang on the United States. What threatened the energy markets. Well have a closer look and hear more of what mr. Putin said at that time. Maybe thats contributing to the Broader Market backdrop here. Also its the crown jewels sporting event of the memorial day weekend, the indianapolis 500 but its not just a car race, also big business. Do you know the minimum racers pay to participate in this event . Its 650 now, and it goes up from there so why does it cost so much . Well speak with the race president live in just a few minutes. It must be the Car Insurance. Can you imagine what the Car Insurance premiums must be going around that track . A great question. Please ask that. I have a good question now. The dow is up 57 points this hour. Lets take a look at where we stand in markets with about an hour to go. That means it 100plus points off its closing high and take a look at the nasdaq. The record close for the nasdaq or at least the recent high is still back. The s p 500, thats the one where right now we do stand in record closing territory, two points above that. Here we go with our Closing Bell Exchange for this friday. Ance stacia am rosa and joe bell and mike gibbs from Raymond James and cnbc contributor michael farr down in washington, d. C. And our own rick santelli. Thank you all for joining us today. Joe bell, here we sit, alltime high for the s p 500, a stones throw away for the dow and, man, you could hear a pin drop. These just not a lot of love for this market still, is there . No, theres really not. Underneath the surface there are some concerns. The leaders have really been in that territory. Those are the larger capps and when you look at the russell 2000 its pulled back about 10 so investors are telling us that they are a little more risk averse in 2014 so i think short term theres a bit of a concern. The fact that were not seeing that euphoria or optimism is a good sign Going Forward out in the next year or so. Michael fax i want to ask you who you think is in this market because on wall street people are hanging their heads and bemoaning the fact that there seems to be no trading activity and in the meantime Td Ameritrade showed about a 50 yearonyear jump in revenues. So is it possibly the case that this environment is okay for the retail investor, even if the institutional guys are kind of looking for for some volatility here . Longterm investors are in, kelly, and they have stayed in. Warren buffett is still in. Were still in. Most of the long only managers are still in. People are continuing to contribute to their 401 k s and for those who have done that over the past three years, five years, ten years, their numbers are looking good. The real risk to this market, in spite of everybody waiting for a pullback, the real risk is to have been out of it so if youve been in youve made money, and i think as long as folks are making money they dont get at. Retail, a lot of institutional and bill griffith, i love your mark hanes tie on today. We love marc and thank everybody for their service as we head to the memorial day as well. Thats what that is about, too. Anastasia, focusing on our markets here. Do you see youre the Global Market strategist there at jpmorgan funds. Well, theres always opportunities in the Global Investment universe. I think probably the best opportunity is europe, and the reason for that is because they still have a rampup, still have a Recovery Process and the ecb is certainly doing everything it can to support the recovery so i think thats one thing. The other thing i would say is even though emerging markets have been such a tough place to be its always the contrarian opportunity that ends up outperforming the market so if we look at russia and look at turkey and india, they are some of the markets that actually outperformed this week. Would you stay with russia given all the tough talk from Vladimir Putin . I think i think russia is one of those opportunities where theres two major investor concerns to be alleviated. Investors need to be convinced theres not going to be an invasion or military action, and i do think that president put putins remarks contributed to that sentiment and theres a little bit of a positive shift and the second thing that investors need to see is this talk of sanctions that is really hampering anything that russia can possibly do economically, the talk of sanctions needs to abate and once again the sentiment that i think president putin expressed as well as the sentiment building over the last week and a half or so is constructive. You know, mike gibbs, so we were just talking a little bit about the risk around the ukrainian elections sunday. Getting beyond that would you agree with say dan greenhouse over at btig who says its time to go wrong and the russell is the place to do it . Oh, i dont know that im there. The momentum is not there yet. I want to reiterate what the original panelist mentioned about. Were talking about an s p thats going to close attin alltime high but did you realize 47 of the stocks in the s p are down 7 or more and 45 are down 10 or more and in the small cap youve got 50 of the stocks that are down 16 or more so beneath the surface weve got a market thats actually been correcting, and were going to have to right this and clear this out and clear the deck before the market is on firm footing to make a move higher. The point youre making, that stealth correction that weve talked about on this program in the past. Rick santelli, did you see any market response to anything that Vladimir Putin said, and do you see it getting ready anywhere for those ukrainian votes on sunday . I really dont. Im not saying they are not super important and, of course, Foreign Policy isnt key, but i dont see anything in the financial markets. The Foreign Exchange markets either or the fixed income markets, boon, gilt that look like they are concentrating on anything on the vote. Theres a lot of talk about the june 15 ecb meeting, and i think its very interesting the kind of week weve had in treasuries. The closing yield in tenyears since a week ago thursday, bill, when we had our best close, lowest yield since july of last year at 2. 49, this is, because were closed early, the sixth close in a row between 2. 51 and 2. 55, and i think thats very important to keep in mind because whether the equity markets get their sea legs back or not i think next week with revisions to gdp and central banks, of course, being the big cheerleaders in a very physical way for what some of the action is in equities, the game is still afoot. Hey, michael farr, you mentioned 401 k s and retirement earlier, and theres a survey that we have more on our website about that just caught my eye because it sums up a lot of the trouble with this environment perhaps. Yeah, theres long money in this market but 55 of americans who were polled in this country surveyed said they didnt even know if they were saving for retirement or if they had a 401 k i guess is the point. Were going into the long weekend. Who are those people . What is one thing that people could do this weekend if they are overwhelmed by the fact that they have missed out on this rally, and maybe they dont have as much saved, would you have one or two recommendations . Yeah, first, think about your future now and start to take some responsibility for it. Dont believe necessarily that the governments going to be there to bail you out. If you dont have a retirement plan, start saving now. Its never too late. Invest in an index fund for the longterm. Need a fiveyear horizon. Even with the market at alltime highs, michael farr . The best rule is to invest when you have money. I mean, in 1998 the market was at alltime highs and it went up another 20 . Its really difficult to be out and to try and time this market. If youre going to be in for the long term you can do it. I wrote about it in my book a million is not enough. Toll the baby boomers seven or eight years ago they needed more money to retire on. Get started now. Index funds are great vehicles, but, please, start. Think about your future. Thanks. I just look at that. That caught my attention. Constantly reminded how Little People have done for their own retirement. 55 of the people surveyed didnt even know if they were in a 401 k plan. Thats too bad. Joe bell, as we sit here on the crux of memorial day weekend, i think about those sectors that might pertain to our u. S. Military, the Defense Industry has been, you know, downsized but yet those stocks have just continued to perform so well. I dont know if youve watched them at all, but, you know, do you think that thats a sector to keep an eye on these days . Yeah. You definitely want to always keep your eye on the leaders in this market, especially as we talked about. Youre talking about health care and the defensive stocks and Energy Stocks so if youre looking for pockets of strength within this market i think you do want to invest in the leaders and the defensive stocks are one of those leaders. And finally, mike, lets put up a chart of the s p 500 again. Were seeing right at 1900. How significant is that from a technical or historical point of view . Its a round number. I really dont pay that much attention to it. I still think the s p is Still Holding up near a high and the rest of the market is correcting pretty hard and tough to catch up until the rest of the market catches its legs. Thank you, folks. Have a good long weekend. Have a good memorial day weekend. And were going into the last hour here. Its going to get loud for a couple of reasons here in this last hour. A lot of customs, a lot of tradition come to the floor. In 20 minutes when we hit on the clock it will read 3 33 33 ahead of a threeday weekend when the whole floor will go up, starting to hear the whoops already and a member of the military will be ringing the closing bell and there will be a lot of applause for him as he makes his way through the Trading Floor. A lot to look forward to and the dow up 59 but the s p were watching carefully because it is in record territory right now. If we close here anyway. 1900 on the dot. Our stocks that pay a dividend like apple and qualcomm are the best place to put new money to work . Plus, who would have thunk it, investors buying penny stocks at the fastest rate ever. Well speak with a couple of market pros about what is driving that surge and whether its a good idea. And in our continuing series on the rising cost of health care, one of obamacares architects, sew eke emanuel tells us what needs to be done to get skyrocketing drug prices back down to earth. Stay tuned. More coming up on closing bell. Ameriprise asked people a simple question in retirement, will you outlive your money . Uhhh. No, that cant happen. Thats the thing, you dont know how long it has to last. Everyone has retirement questions. So ameriprise created the exclusive. Confident retirement approach. Now you and your ameripise advisor can get the real answers you need. Well, knowing gives you confidence. Start building your confident retirement today. Honestly, the offseason isnt ive got a lot to do. Thats why i got my surface. Its great for watching game film and drawing up plays. Its got onenote, so i can stay on top of my todo list, which has been absolutely absurd since the big game. With skype, its just really easy to stay in touch with the kids i work with. Alright, russell you are good to go alright, fellas. Alright, russ. Back to work penny stocks are seeing massive increase in volume right now. By some measures activity is up over 40 from last year due largely to small investors starting to dabble in these risky names. Coverage about this today. We had a sense this was coming, why . If you recall Shaquille Oneal on this show recently brought up penny stocks. Listen to what he had to say. I dabble a little bit. Do penny stocks here and there. Penny stocks. Enpenny stocks, yeah. Get into the big caps. No. Invest for real. Ever since watching wolf of wall street i try to do my thick. Not. I just like to have pun. No blue chips for the big guy. So is this renewed interest telling us that there are opportunities in the pink sheets, as they are moan . Joining us is colin barr from the wall street journal who wrote the article on that and ben willis from princeton securities who made a market in penny stocks on the pink sheets here on the floor. I was working with another firm at the time. I actually wrote the rule for the markets on the floor of the Stock Exchange so i have a little bit of experience in actually trading them so well see where we can go with this. Colin, what do you make of the resurgence of interest in pink sheets or penny stocks right now . Whats that about . Well, i think people want to find ways to get return on their money. Youre not making a whole lot in savings accounts or a lot of the blue chip stocks that dont seem to move a lot sometimes so i think a lot of people were attracted to these thinking its a way for me to double my money. I couldnt help but notice as well. That stuff matters, colin, and is investing in penny stocks a terrible idea or just a really bad one . Thats a good question. Theres a lot of risk in these. The old saying is these are sold rather than bought and thats the problem with penny stocks, you cant tell. You cant tell who is behind them and who is telling them. I think sometimes their mott i was arent absolutely pure. Its a good idea to stay away from these unless you have money that youre not very attached to. When i think of the pink sheets i think suckers market, i think bucket shops, dont think of the big board and i think of market top, especially when theres renewed interest. A couple of things that go to the percentage change in the penny stocks. First of all, fannie mae and freddie mac have had a major major impact on that number in and of itself and thats really not the playground of the sucker moves. They are small they are considered small caps since they have been listed. The only place that they have allowed to trade son the pink sheets. Ill give you a better example of what i have a stock certificate of what traditionally is a penny stock. Called a Lottery Ticket. If youre comparing to a Lottery Ticket, fine, but on their own merit. On their own merit they have very little merit. Very, very few and far between, and ive worked with legitimate companies that do capital formations and some are actually traded down here on the big board. They have grown from that status. The games that are played, as we just heard, is that this is a manipulated market. If you look at the Yahoo Finance message boards, you will see stocks that are touted. As a market maker and broker dealer i was not allowed to challenge the statements made by those people. You knew they were being pumped and dumped. So youre saying theres a legitimate basis for this market because they grow up into blue chip stocks. There can be, but they are few and far between, like a Lottery Ticket. Theres a winner of the lottery. The vast majority are actually not, so thats really what were facing and its a highly manipulated market, the pump and dump. The wolf of wall street is a perfect example. Thats what they are specialized in. Dont go ask your wife if its okay if you need 10,000 right now. Read josh browns book. Thank you the phone. Colin . I agree. What about your point about fannie and freddie maybe distorting the volume numbers that were seeing right new in the pink sheets. If you back out fannie and freddie and theres a bunch of foreign stocks listed on the pink sheets or that trade on the pink sheets because they arent listed, volkswagen and things like that, actually volume increase is larger if you back them out, so there is actually a big rise in trading of penny stocks. I dont think theres any doubt about that. To the point about fannie and freddie, those are Lottery Tickets, too. People in the government have said were going to wind these down. Theres not a congressional debate over that. Theres no reason for anyone to think that those will be money good either. Thats a whole separate segment. Right. People think they will be trading at 25. Like you said. They had a different discussion, colin, it was a great piece, and i guess the last thing that i would just say i know were out of time. It was thoughtprovoking. We always have more questions but so little time. Thank you both for joining us. Let you get back to work on the Trading Floor. 40 minute to go here. The dow is up 61 points. The s p were seven but its sitting right at 1900. Its important. 1902 is the record intraday high. I think were almost there. 1897 is the closing high so if we close right here, a new high for the s p going into the long weekend here. Speaking of which, the new xmen movie is expected to rake in over 100 million this memorial day weekend. Well talk with a top media analyst next about which studios could come out on top by the end of this summer. Also coming up. Revenge of the nerds. Were calling this the geek economy. Our resident geekdom nick chu will give us the lowdown on which companies can give the biggest boost from this rise. Dont get it. 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