What were watching very closely. Would set the tone for tonight and tomorrow morning. Watch for the intel earnings. Thanks for joining us here. The dow is up 88. It will not be a fiveyear high for the dow but it will be for the s p. See you tomorrow. Heres hour two with maria. And it is 4 00 on wall street. Do you know where your money s. Hi, everybody. Welcome back to the closing bell. Im Maria Bartiromo on the floor of the new york stock exchange. A big real on the street today pushes the s p 500 to another fiveyear high. The dow also trying to close at a fiveyear high as well with an 85point rally in the session, slightly shy of the highs of the afternoon. Take a look at how we settle out tonight at 13,596 on the industrial average. Volume on the light side. You can see 562 million shares traded here at the big board. Nasdaq higher by 18 points and technology is strong. Financials strong. S p 500 up 8. 25 points. Two key earnings due out moments from now. James friedman of Susquehanna International group is watching and waiting for the American Express numbers, and im just getting them right now. Im getting intel right now actually. Were waiting on intel. 48 cents a share where intel is reporting its eps. Estimate for intel calls for a profit of 45 cents a share. Alex gonaugh with his eye on intel. 13. 5 billion in revenue from intel. 13. 5 billion on intel is the revenue and the earnings per share is 48 cents on, like i said, 13. 5 billion in revenue. The stock is moving, as you can see, in the extended hours. Acting on the heels of the numbers. Our market experts are ready to weigh in. Michael yosikami joining us and brian peori with henessey funds as well. 48 cents a share and 13. 5 billion in revenue. Whats your take on the intel numbers . Looks like a pretty good number. Exactly what people were looking for, essentially anyway, and theres been more dire concerns out there, you know, the death of the pcs, those worries out there that have beleaguered the stock last year but what were seeing right now sin tell is still very much in the fight, in the Cloud Computing fight and in the new mobile fight with their new tablet and smartphone initiatives out there so a pretty good number all in, i would say. Good number all in, but its interesting that the numbers actually crossed the wire before the market closed. Do you think that that was a mistake, not typical for intel. Normally come out after the close. Should have been after the close. I dont know what happened with them there in terms of coming out too early. Intel too eager to show the world that it wasnt done from the fight yet. What do you want to hear from the Conference Call tonight in terms of business Going Forward with intel . I want to see how they view seasonality, want to hear about the technology road maps and Capital Investment plans for next year as they continue to try to extend the benefits of more is loss. Theres a lot that could come down the pike in terms of them becoming a foundry manufacturer down the line and still a long way for them to go in terms of trying to get a deeper footprint into the smartphone and tablet markets. Michael. Let me get your take on these markets and the earnings period. Intel just reported a moment ago, and were waiting on American Express shortly, but this market has been trading up, doesnt want to go down, cheering upbeat housing, jobs data. Despite some mixed numbers in the Banking Sector, is this sustainable . You know, i think the market is going to continue to trade up. As you said earlier, not a completely fundamental story, a real federal connected story. Intels numbers are quite good given in n my opinion how bad pc steals have been. Its a positiveyard line for the market. Interesting to see what American Express numbers look like. That will tell us a little bit about discretionary. American express came out and talked about job cuts here a couple weeks ago so we need to see how that plays out. Isnt it interesting that only 13 of the s p 500 is trading lower year to date in 2013. It has been a riproaring here in terms of equity. Do you want new money here or are we two for a bit of a slowdown . What do you think, james james . All right. Thank you, maria. I was looking at the amex numbers now. Would i say relative to this print, and youve got to back out a lot of extraordinary items, these numbers on the revenue side look roughly in line with what we were expecting, earnings side slightly better. Looking specifically at amex. Brian, why dont you weigh in here in terms of the broader market. What is lifting this market other than the fed . I think youve got some good earnings numbers coming out, and i think that it bodes well for us going well further, you know, higher from here. I think that this is a great opportunity. If people havent been fully invested, now is a great time to step back into the equity markets. I think you put the riskon trade here, and i think that we go higher for the rest of the year you know, maria, youve got to be very careful. If youre going to put riskon in an environment where the market is at fiveyear highs, where fundamentals are great and not okay and where the Federal Reserve is absolutely not guaranteeing Federal Reserve action going for the next six or 12 months, you need to be very careful. Youve got a drip open. Look for dripping in, look for corrections and pullbacks, do it over time because this is classic investors mistake. Fiveyear high, people open the paper and its time to invest and they dump the money at the worst possible time. You think that were due for a bit of the break after all the money having made into equities the last couple of months. Im not looking for a 20 correction but its inevitable when the market his 1306 on the dow, well have to see how earnings play out over the course of the next 30 days but there will be an opportunity to buy some songs at a cheaper price. The vent dealing will be the real driver of the market going down, right . We know mobile has been driving everything throughout technology. What do you want to hear out of the Conference Call and how they will capitalize . We want to know how they will Push Technology forward, what they have done historically and what they will continue to do. They are making progress on the mobile side of the market. They have got one of the leading phones now working with motoriala in terms of battery efficiency. They keep making Technology Better and if you can push into the markets, you can be more of a gloat story. Intel technology is essentially the cloud today, and so depending on how those data Center Numbers work out, we to see now they can push that forward as well. You nexted earlier its what you expected. Did preannounce last week. Do we know anything new from this report that you didnt know last week . The company is taking actions to reduce their cost struck youre. As the margins go, so should the stock. We think thats an encouraging development. Appreciate your time tonight. See you soon. Dont move, anybody. The intel chief executive officer be here and lots to talk about with the numbers we saw and ceo john stumpf is here in the house for an interview youll see only right here next. Were talking everything from earnings to housing to lending to his stock which is up, 2i the way, 20 over last year. Well be right back with john stumpf. Fortunately weve got ink. It gives us 5x the rewards on our internet, phone charges and cable, plus at Office Supply stores. Rewards we put right back into our business. This is the only thing weve ever wanted to do and ink helps us do it. Make your mark with ink from chase. Welcome back. So where did this rally come from today . Bob pisani wraps it all up right now. Over to you, bob. Banks and home builders, but very simple, maria. Pretty good volume, 41 advancing to the declining stocks. The longterm picture we want to look up. Fiveyear highs on the s p 500. Made it. Dow did not make, it by the way, the Dow Jones Industrial average shy of the fiveyear high. Midcap, historic high, russell 2000 historic highs and slickials strong for the start of the year. Speaking of the start of the year, early to put this up. Look, so far the s p 500 up almost 4 . At this rate somebody wrote to me will be up 110 on the year on the s p. You get it. Dow transport, risk on, honeywell, united technologies, all on the strong side. The Regional Banks had the earnings fifth third, pnc, huntington and a new high for fifth third. Back to you. Bob, thank you so much. Financial stocks, of course, leading this market again this year. Wells fargo climbing nearly 3 this month alone, after rising better than 20 in 2012. Wells fargo chairman, president and ceo is john stumpf who joins me now in a rare and exclusive broadcast interview. Welcome to the closing bell, john. Thank you. Nice to be here. Thank you so much for joining us. I want to talk first about the broad environment, what youre seeing, because we talk so much here about the challenges as a result of washington and this slowing growth story for the economy. What are you seeing . Well, 2012 was the year housing really made its statement at its back. Its not back to where it was, but surely we can now say housing has turned the corner so thats a good thing for the economy. When housing does well, Everything Else seems to do well. Quite a multiplier effect. In fact, theres been no recovery in this country of size or stability without housing participating or leading. Energy is doing pretty well. We see some manufacturing, but to be honest about it, the recovery is still not as strong as it needs to be. Theres still too much uncertainty, and there needs to be more clarify for the economy to take off. A really important point because i think businesses are, you know, shaping up and are currently in great shape in terms of cash on Balance Sheets. Terrific. So they have the potential to put money to work, although that uncertainty factor is really keeping them from doing so. In fact, corporate Balance Sheets have never been better. Liquidity, cash, weve grown 300 billion in core deposits in four years. You know, consumer Balance Sheets. Even though the debt hasnt come down that much because Interest Rates are so low, the interest carries. The debt service is back to 1998 or 1990 so theres great capacity to invest, to hire, to grow, to buy things, but this uncertainty thing puts a real cloud on things otherwise people would do. They are putting them in abeyance. Im going to get back to that. A real issue. Want to get your take on solutions, but you mentioned Interest Rates and this low Interest Rate environment. Youre putting your bet on growing Net Interest Income. Correct. Let me ask you about that. Even in this low environment how do you do it . Whats the plan . You do more deposits, more loans. In fact, last year our Net Interest Income, the difference between what we get on the loans versus what we pay on deposits, an endless margin, dropped 18 basis point but we actually grew Net Interest Income so you do more, and weve dealt with this low rate environment before. Do i think rates are too low . Yes. A lot of monetary stimulus, but were able to operate in that environment, and its been a real bargain for borrowers. On the other hand, savers have paid a real price. How do you offset that knowing that its become tougher to make money in banking . Well, this year we grew revenues by 6 quarter over quarter from a year ago and 6 you took the whole year. Almost all of it on the Noninterest Income side. Half of our revenues come from fee for services, mortgage brokerages, other things so we dont only live on the margin, if you will, so think of a company that can produce those kind of revenue numbers with no help from the margin or very little help so this is a company with enormous capacity to help customers and return stuff to our shareholders. A lot of times when the Analyst Community talks about wells fargo, they obviously talk about mortgages, talk about a lot of exposure, increasing exposure to mortgage banking compared to rivals. One of the analysts i guess from Goldman Sachs downgraded your stock to a neutral from a buy citing this greater exposure to mortgage banking. Break it down for us in terms of priorities at the bank. We recognize that mortgage banking is incredibly important but is he right . What do you do in an environment where some people question whether or not youve got an overexposure to one part of the business in. Okay. Well, first of all, i dont not only like the Mortgage Business but i love it. The reason i love it is because our customers love it. Twothirds of americans on homes they have not lost their emotional attachment to own a home and our 30 share there, half of that is an aggregation share. We buy loans from other originators in a corresponding business and help package them, provide liquidity and sell those. Our real share is about 15 . 10 of our deposits in the country are part of wells fargo so a 10 share there. Everybody takes a deposition it and not everybody makes a Mortgage Loan so 15 is not that outsized. We still have tons of opportunity. As i like to say, this is more than a onetrick pony. We have so many other things going on with the company. We have 84 different businesses. Were number one in Small Business, middle market. Autos. Distribution, love the credit card business and the Student Lending business and the assetbased lending business. Theres tons of stuff going on, and all those other things have also had record years. It might not be as visible because people talk about mortgages, but this is a broad Diverse Financial Services company that, you know, provides services for all kinds of customers. So where does the growth come from, the real sizable growth in the coming heres. I dont want to be so shortterm oriented. That is sort of the norm on wall street when everyone is looking at estimates. Look long term for us. Sure. Whats your vision in terms of where the growth comes from . First of all, lets take mortgage for a second. We still have tons of customers who call us our bank, deposit their money with us and have their Checking Account and their mortgage some place else so theres still opportunity there. But i think wealth brokerage retirement is a huge opportunity. 10,000 americans retire a day in america, so thats a big opportunity for us. Were undersizing that business. I like the insurance distribution business. I like the Small Business business, so theres a whole bunch of things that when you have that diversified model,ing does better not quarter over quarter but over the long term. We were talking about the Social Security and raising the eligibility age and lawmakers saying this hasnt been changed, lowhanging fruit in terms of getting our way around debt. Speaking of retirement, should Social Security recipients get it it at 80 as opposed to 67 . Whats your take . I cant pick an age, but i do know this. We have a fiscal and financial problem in this country, and i know people have talked about, you know, if you had a family you couldnt live at this and borrow at that. Think of this as a perspective. The average American Family owes 200,000 on their mortgage and 15 million mortgages in america and took the National Debt and split it up among the 50 million homeowners, they would owe 530,000 on their mortgages. If we dont get this thing fixed three years, four years now, 600,000 on the mortgage, 400,000 on the debt. We have problems. We need revenues and expenses. If we can figure that out. We can get away from this cliff and that cliff and pivot to a growth agenda. Were going to grow our way out of this, maria. Not going to save our way out or tax our way out, but those things do matter. Im glad ceos are spending time expressing their thoughts on these issues. But were living cliff by cliff. Yes. Its amazing to me that we havent, you know, put out real solutions. Has this, do you think, become an impediment for business . Has it become an impediment for your business that all this uncertainty and the fact that we cant make any decisions in washington, even though the corporate Balance Sheet is quite strong. Absolutely. What did we talk about in december . Nothing but fiscal cliff. It even drove santa claus off the front page. All we talked about. Thats true. Now the debt ceiling and then its sequester and the continuing resolution. We go from this cliff to that cliff, and we dont deal with the problem. If we deal with the problem, theres so many assets in america. We can grow our way out of this. Let me ask you about getting out of a problem and for many its regular laying. After the 2008 upset, the Banking Sector has faced much higher regulation. Things are changing quite a bit. Were no longer riding a wave of deregulation, quite the opposite. Talk to us about the Regulatory Environment and how you see it. Clearly regulations increased. We have dodd frank with, you know, thousands of pages. Lets be honest about it. There were some bad actors prior to 2008. Im all in favor of good solid regulation with regulators who have real teeth and can make things happen. What i dont