True but look at gold today up 40plus dollars, back above 1,300. A lot of traders are wondering whether the market is responding to Janet Yellens comment yesterday that the inflation data has been nothing but noise. Well get into that in a moment. Private equity legend jay jordan says this market is overpriced and too risky right now. Where is he putting his money . Well ask him in an exclusive interview ahead. Looking forward to that very much. Also, netflix trading lower today despite that major announcement that Chelsea Handler is moving her late night show to the streaming Video Content Service in what is being billed as an historic move. But the market is not buying it. Not impressed. Youll hear from an insider who says this movie is not a slamdunk success for either netflix or Chelsea Handler. Thats coming up. Heres where we stand in the markets right now. Stocks under a little bit of pressure a day after the s p 500 set a new high after Janet Yellens comments and the federal reserves decision. That was yesterday, of course. The dow shedding now 12 points. The s p about a point. The nasdaq off ten. Bill, as you mentioned, a lot of focus on moves in gold and in the treasury space as well. Lets talk about it all, as we say yo, yes, im already tired of it myself. Dick burridge, heather hughes, jeff taylor, and our own Rick Santelli as well. Heather hughes yes, sir. Gold. Gold bugs. Jitters. Huh . Is that for real . Heading higher . Yeah. Well, look. Were all wondering if inflation, if were going to get an uptick in inflation as we have already seen one from april to may right now. I think look at food and fuel even. Not just gold. Thats whats important i think to middle class americans and the retail investor. You go to the grocery store. Food prices are rising. You go to the pump to fill up your gas tank. Gas prices are rising. I think that could be a concern on the horizon. Thats why you are seeing some money move into gold perhaps. Peter anderson, how do you tie that back to whats happening in stocks today, whats happening in the bond space . Well, i was really happy yesterday with the results of the press conference. I thought chair yellen did a fantastic job. I have been a critic in the past, kelly, and i think this, her second press conference, she is really getting the training wheels off and being much more clear. I think the one thing she might regret is what you opened the show with, talking about there is the noise of the data. And that might be triggering a gold price increase just because people are very much very nervous watching and hanging on every word she says. That being said do you think it was appropriate for her, peter, to say that stocks were not overvalued right now in her opinion . Bill, thats another amazing thing. Im watching this thing certainly with the interest as an investor and portfolio manager. But just as an academic, you are listening to these things shes saying. It is truly a new age where she is being so forthright with disclosing, giving opinions on everything. Even volatility in the market. 10, 20 years ago, you would have never heard a fed make those kind of comments. So i do think it is a very new thing. Im not certain how it is going to play out. If you ask me, i think it might be too much disclosure, but hey, thats the plan were given and we have to learn to work with it right now. We all asked for transparency. We wanted a federal reserve, our chairwoman or chairman, thats transparent. In short, here we go it. Thats for sure. Dick, do you like stocks here . Do you think that they are overvalued here . I think smaller stocks in the u. S. Are overvalued. Theyre extended, theyre in the middle of a correction. Larger temperatures i think are fully priced. I do think before the bull had market is over in the u. S. Youre going to see stocks 20 or 30 higher. Lot more volatility between now an then as we get there. On the other hand, i think the rest of the industrialized world and japan and in europe stocks are still very reason briably priced. We would ship more money from the highquality u. S. Companies, to highquality european and japanese stocks. Jeff taylor, lets talk about why this happened this afternoon. It seemed as though this is what our caption was just indicating as well perhaps it ties back to the tips auction. A sense that Inflation Expectations are moving higher. Do you sense some regime shift here under way . I do a little bit. It is interesting. You look at interest reports, still historically low yet the Housing Market is still not coming back. Were on track but you still arent seeing the firsttime home buyer come back to the market. Do you fade this move if you dont think this is sustainable . I think it is going to come back to us, yes. In stocks. What about gold . Gold i think is kind of fairly priced right now. All right. Fairly priced there. Youre worried about a little bit of a move back in stock. Okay. What about you, Rick Santelli, why is gold up almost 50 right now . Because i think whether you look at the white house, you look at Foreign Policy, you look at congress, or yesterdays fed meeting and the answer to the inflation question. I think there is a nervousness about how the country is being run from kind of a corporate boardroom perspective. We all understand that if you dont have confidence in the board youre not going to necessarily like the stock price. Think thats whats going on with gold. Listen, if you think continuity isnt a great theme for new fed chairman or you think Foreign Policy is up in the air, or you dont like Government Entities that lose emails and hard drives when youre not allowed to do the same thing, maybe gold does look like a pretty decent investment. I will tell you this. Its Pretty Amazing that the war between belowtrend growth versus higher prices really, in many ways, changed yesterday with janet yellen and steve leisman. Kudos to leisman because if you dont appreciate the attention given by janet yellen to pricing pressures in xhot t commodities, make it makes you nervous that continuity at any price may be a flawed strategy. There was a huge turn in Interest Rates, though this have moderated a bit. Philly fed gives you two things no others do priced received were down 2. 9 . Think about what that says. Prices are going up but it is hard to pass them along. Doesnt sound like a winner to me. Well talk about Inflation Expectations next segment. What rick is saying has some people in the equity space worried. It is ultimately margin pressure. That heather, should margin pressure be a concern here . Yeah. Again, food and fuel are most important i think to middle class americans and the average retail investor. Equities markets still seem to do okay thus far. It seems like not even deflation is derailing these markets or geopolitical tensions which maybe also leads to the fact of flocking to gold as a safe haven. We crossed the line in syria. Right . Markets ignored it. Putins advancement in ukraine. Markets ignored it. Even now with the civil unrest in iraq, markets are still ignoring it. They seem pretty resilient right now. Im not sure what could crack these markets. If not inflation, a mini ice age . Im not sure. Thats the question ive been asking, peter anderson. What would cause a 10 correction in this market finally . Whats this market waiting for here, do you think . Well, i think if you cannot find any more stocks out there that are undervalued, bill, then people are going to start to get impatient and theyre going to start to conclude that everything is overvalued. But i have to tell you, bill, right now that just is not the case. To bring this conversation back to what were all interested in which is how do we make money in this market. I would say that you can still find stocks in Certain Industries that are say they are addressable markets, for instance. They are still not recovered. You look at s p 500, it is back or above where it was from 2008. Right . But there are most industries are like that, too. However, there are some companies out there that are not back yet to that level. Theyre back to, say, 2002, 2003 levels. Those are the things i get excited about. As long as there are things like that out there, im not expecting a wholesale correction like that. Kelly . Real quick. Did you notice wall street article . 241. 2 billion in buybacks and dividends year to date. That blows away the last time it was anywhere near here was the Fourth Quarter of 2007. Ponder that. Rick, rick,er whos whats interesting though. This year to date is the first time in the last couple years that the dividend and buyback indexes arent outperforming the s p. So for once it seems as though thats not the only way to make money here, at least from the investor it is a contributing factor. Yeah. It certainly is. Look, travelers, as we learned, bought back 58 of their float after starting that Share Buyback program in 2006. Thats how theyre putting their cash to work these days. Not the traditional way in capital spending. Or borrowing. Were going to morph to iraq now, right . Right. President obama saying the u. S. Is prepared to take tarring and precise military action in iraq if necessary. Michellearuso cabrera is in iraq. Reporter the price of oil rose during president obamas announcement. Brent climbed to above 115 per barrel. One oil trader told me the reason was because even though the president announced limited military action, the plan that was announced was hardly one that was enough to secure iraq. Still the president did say that under certain circumstances he will act. Because of our increased intelligence resources, were developing more information about potential targets associated with isil and Going Forward we will be prepared to take targeted and precise military action if and when we determine that the situation on the ground requires it. Still the president was quick to follow up and say he would only send 300 military advisors and that would be it. We always have to guard against mission creep. So let me repeat what ive said in the past. American combat troops are not going to be fighting in iraq again. Reporter so well be waiting to see if and when that precise and targeted military action comes. Guys, back to you. All right, michelle. Thank you very much. We have a news alert on apple regarding what . Their smart watch . The detail dujours about that possible smart watch apple launch here are coming via reuters citing sources familiar with the matter. Production of the apple smart watch will begun in july, reuters citing sources familiar. Some suppliers being named, south koreas lg and singapores bas bas based hectogon. Apple aims to ship 50 million of these smart watches in the first year of the launch. The launch will feature a 2 1 2inch arch screen and Wireless Charging capabilities. A we could see a watch land in Retail Stores as early as october just in time for the Christmas Shopping season. So again, some details now. Weve heard all kinds of rumors before but this one now coming from reuters citing sources, giving at least some product spex as we specs and naming possible suppliers and a mass production date as early as july. I love the timing. You think this is tim cook saying to jeff bezos, take that, throw a little water on their fire phone . Look at the shares, bill, staging a bit of a comeback on the news. Certainly going after that market. More details for now. 45 minutes to go to the close here. Little bit of comeback for the indexes. The dow only negative by about five points, 16,900. Coming up, permabear harry dent says hes taking profits now because the dow is heading all the way to 10,000 by early next year, then 6,000 the year after that. Well get the case of why what does it say now . Why hes way off as well. Somebodys going to take the other side of that trade is what were trying to say here. Also, fed chair janet yellen saying inflation may be here but it also might not make her raise rates. How does the stock market do in that kind of environment . Well ask. Something everybodys been talking about today. You thought earnings season was over, right . Well think again. Oracles results are due after the close. Well have the numbers, instant analysis and the reaction in the market for that tech bellwether. Thats still to come on the closing bell. Yo. We needed 30 new hires for our call center. Im spending too much time hiring and not enough time in my kitchen. [ female announcer ] need to hire fast . Go to ziprecruiter. Com and post your job to over 30 of the webs leading job boards with a single click; then simply select the best candidates from one easy to review list. You put up one post and the next day you have all these candidates. Makes my job a lot easier. [ female announcer ] over 100,000 businesses have already used zip recruiter and now you can use zip recruiter for free at a special site for tv viewers; go to ziprecruiter. Com offer2. Welcome back with some breaking news on who will be the next House Majority leader. John harwood has the details. Weve just gotten news that out of the House Republican conference that Kevin Mccarthy has been elected the new majority leader to replace eric cantore who was canter ha wwho was defeated in primary last week. There is still the process for selecting the new number three in the House Republican leadership. Were awaiting the result. But Kevin Mccarthy, 49yearold californians with a genual position, he had been the whip, the vote counter in the house, has taken the new role of majority leader. Because i have lost connection with the ifb and cant hear you, i will toss it back to you. Thank you, john harwood. As expected, Kevin Mccarthy getting that position. Gold prices rallying more than 3 today above 1,300 for the first time in nearly a month. Jackie deangelis, are these Inflation Fears behind the move or is this more about unrest across the middle east . Hey, well, you touch on a lot of points there, kelly. A big day for gold by all accounts. At the close today we were up 42,4 42. First of all, Janet Yellens comments yesterday trying to talk down inflation in some ways without making gold traders pretty nervous that it can actually come back and bite the market. You had some Short Covering there and also some new buyers into the market. In addition it appears that funds are repositioning a you little bit right now. We had a very strong stock rally. Thats where a lot of money was but people are feeling the need to diversify at this point but they are looking at gold because it was a very lackluster performer. A leg up like this today, ive asked traders is this a one day move or the kind of thing that triggers a sharper move higher. They definitely said they are looking for gold to continue higher. Tomorrow could be another crazy day in the pits but 1,350 is the next expected level. Federal reserve chairman janet yellen said yesterday despite the nosey data, inflation might not make her raise rates in response. How will the stock market behave if we are in a rising inflation environment, bill . Our panel is assembled. Steve leisman, i think it was your question yesterday during the News Conference at which chair yellen used the word noise when she said the inflation data lately has been noise. She called it noisy. A lot of folks i talked to today werent particular lly satisfie with that answer. It is unclear what she means by noisy. The issue being that the recent report actually several reports have showed a lot of broad hadbased inflation rise. One of the questions, why are prices going up in an environment where wages are not going up. Are we having some other f phenomenon going on other than a wage spiral. I think yellen has to explain what the upper bounds of her tolerance or the feds tolerance are going to be for inflation here. Greg, is the message consistent right now that the market has the same skepticism as the fed does underjanet yellen about inflation being sustained here . I think that janet yellen is exactly right to call the inflation data noisy. If you look at the last four, five years, core inflation has been below 1 , above 2 , now back down above 2 . I think one of the reents market rallied was that they saw those numbers on tuesday, got worried. They saw the bank of england getting hawkish on inflation and thought will the fed follow suit. Is the fed wrong to be somewhat sanguine about the numbers. Dom, youre our market guy. What happens to the market if we are in a rising inflation here . Rising inflation environment is one thing but it is not something markets fear per se. Inflation is a good thing when it comes in measured doses. If the fed can manage to keep things this that 2 range, maybe even a little above 2 , markets are content with that some of the best rallies in market history have been done when Inflation Expectations have been there but not expectations for massive moves higher or massive moves lower. As you talk about whats happening with say certain parts of the market, yes, certain beneficiaries will be there. Energy stocks, material stocks, those stocks that are tied to rising prices will tend to do better. But the real concern is going to be whether the financials and technology can lead the way higher. By far they are the two biggest sectors in the s p. Seems like a lot of this will depend, if i can use that much bantered about word lately on whether wages are rising. In other words, is this the kind of price pressure that squeezes margins or the kind of price pressure that ultimately gets passed along in the form of a more healthy, i guess, environment for the consumer and which they can take price . Let me lay some economic principles here. Rising prices are essentially deflationary in the sense that people raise prices, they cant stick, it causes demand destruction, and therefore you have the like oil hikes at the gas pump. Exactly. The real question becomes then i th