tv Closing Bell CNBC October 18, 2013 3:00pm-4:01pm EDT
but you have to be careful. they didn't have this problem with pagers. >> and they have therapists looking into this. here's a solution, turn off your phone. >> thank you for joining us. thank you for watching "street sign." brian will join us from a surprise location, cashing in on the world's energy leader. it's going to be great. see you then. >> the dow jones industrial up 37 point -- >> positive opening for the stock market today, folks. >> welcome to a very special edition of the "closing bell." we're, of course, celebrating maria bartiromo's 20th anniversary on cnbc. we'll have many more highlights like the one you just saw. all throughout today's show. they're fun. you certainly would not want to miss them. the funny thing is, maria, as we're thinking back to the '90s, a lot of the stock moves in this
market today are reminding a lot of people about what was going on in the late '90s. >> it's a momentum market once again. in the dotcom boom and boost, you had dotcom companies soaring, even though the earnings weren't there. today earnings are there, which is the difference in today's momentum market. there's a lot of momentum names out there but they're rising for different reasons. >> funny we're sitting on the floor. you're a trail blazer. we won't be at post 9. there wouldn't be a post 9 had you not stood on the floor 20 years ago today and did it as well as you did it. congratulations. >> thank you very much. i had no idea you were going to run those pictures. >> oh, there's more. you ain't seen nothing yet. there's a lot more. >> okay. great. >> we'll get to that throughout the show. >> thank you for joining us today. the s&p 500 rallying into unchattered territory. we want to look at the rally with dow and s&p 500 in record territory.
joining us is anthony chan, brian jacobsen, and michael yoshikami. thank you for joining us. what's been most stunning for me is the idea we may not see tapering at all in 2013 -- >> forget the word entirely. >> we may not see it until the middle of next year. larry fink said it on our show last week. he's not expecting it until possibly june. what do you think? >> i think it's going tib lot longer. maria, not only congratulations, but you were a trail blazer predicting there would be no trail blazer. remember that. remember when they said the data was unclear. now the data is even more unclear because now is it not only there, but the quality may be called into question. that will cause the federal reserve to wait a little longer. looks more and more like a 2014 issue, not 2013. >> michael, what are you
thinking about on a day like this where we see google, for example, up more than 100 bucks, chipotle up more than 60 bucks. the nasdaq is almost back at 4,000. we haven't seen that level since september of 2000. >> well, i'm thinking it was probably a really good idea to take advantage of the paranoia that happened prior to the government shutdown, to take advantage of this market. really, scott, it's a momentum market at this point. maria is absolutely right. by the way, maria, happy anniversary. >> thank you. >> it's a momentum market. and i think that if you're not in this market, there's really nowhere else to go. if quantitative easing won't be pulled, cash is paying nothing, gold is a mystery to me, and commodities are dead because of emerging market growth. scott, look what's happening even in emerging markets. flows are coming to emerging markets. that tells you risk is on. >> the risk is on. but would you put new money to work in this market? what do you think? >> i would put new money to work
here. i think instead of calling this post 9, they should name it after you, in honor of you. you would put money to work here. with the mention of the emerging markets, and i think if the federal reserve isn't tapering until, let's say, march or june of next year, that fear of the flows of capital coming out of emerging markets is gone and perhaps this is a good opportunity to enter into emerging markets. >> that's a great thought. emerging markets have essentially been killed by the flow argument. china manufacturing data was fantastic. looks like china stimulus is actually working. so, i completely agree with what was just said. it's a flow issue. if the flow isn't going to come out of em, they'll look at fundamentals and the fundamentals are getting better. >> that's interesting. weigh the fundamentals with the euphoria and superlatives that everyone is using to describe the market. it's too frothy. makes people nervous that everybody is universally bullish for the most part.
>> it's reasonable to be a little cautious in this environment when everybody is bullish but they aren't if you look at the amount of cash people still have in their money market accounts and amount in fixed nm income. there hasn't been sustained flow into equity funds in order to say this is getting too frothy. the fundamentals are actually there. >> you know what, when do valuations become an issue? when we look back to the '90s we were -- >> in some cases no earnings. >> and 100 times expected. >> if you look at a conservative estimate of s&p 500 earnings next year, something in the neighborhood of $115, the consensus is much higher than that, or a little over 120, i'm looking at 2014 earnings of just over 14.2. >> 14.2, really? >> that is a very, very good buy. >> that's a good pe. >> you have to be careful. when you take the s&p 500, that's 500 different companies. that's why i think investors
have to understand, different companies, obviously, have different valuation levels. there are companies getting frothy. we certainly don't want to have a mine field like groupon, for example, that had tremendous downside because of no earnings. there are other companies where the earnings are very solid, where they're cash flow oriented companies. you can't just look at the market. you have to look at different parts of the market. that's how you make your judgment. >> that's a great sale. >> investors' market regardless of the fact we're at record levels? >> ohhings absolutely. to the extent stock correlations are coming down, it makes it more exciting to be a stock picker's market. >> what's the wrench in the ointment here? what is going to worry you? you say, you know what, maybe things are getting overdone. what do we watch for? >> i think valuations are a key thing to look for. when i look across the spectrum, value versus growth, revenue earnings per share, how they
behaved on year over year basis versus per earnings share. it's on the value side that we've seen too much earnings. if you get down to small and midcap, i think there's the most opportunities. perhaps if there are some misvaluations or some of frothiness, it's actually, i think, somewhat contained into particular parts of the market. >> i think that right now, maria, everything is working very smoothly. we do have to be aware that there is the fear of political instability in the united states or perhaps political instability in europe. so far, we're hopeful that things will work out. but if any of those two fronts break down, we certainly could see -- >> you're acting as if there isn't already political instability. >> we're talking about dysfunction. we heard mcconnell today saying they're not going to close the government anymore. that's a step in the right direction. we heard a lot of political instability in italy and b berlusconi throwing in the towel. >> we're only a few weeks away from green eggs and ham.
>> they will break down but hopefully they'll stay together. >> do you worry we won't have revenue growth? >> i'm worried about revenue growth but i'm hoping the advancement of technology will help in raising corporate profits. >> revenue growth is huge. i think if you look at what's happening in terms of earnings it's still based on cost cutting and we're getting the tail wind from weak dollar from companies that export outside of the united states. there will be a point that revenue growth will be more important than earnings. maybe that will come in the near future. that's why you look at the economic data. it is critically important. we have at least a stumbling recovery going forward. if we don't have revenue growth, what's going to happen is eventually it's going to slam up against reality and valuations will come down. >> gentlemen, thank you. have a great weekend. >> thank you. >> thank you. >> we're in the final stretch of trading for the week. a market up, another 23 points on the dow with 50 minutes before the closing bell sounds. >> talking about earnings today.
earnings season kicks into high gear next week. up next, we'll tell you which numbers will be key into figuring out where this market heads from here. >> also, how is billionaire investor john calamos putting his money to work now? we'll ask him and find out where he's finding buying opportunities. that's coming up on "closing bell." vo: two years of grad school.
snooi. maria, congratulations on 20 great years at cnbc. nobody is more committed than you to getting the story right. >> thank you for that. think this was a big week for earnings, you have not seen anything yesterday. jackie breaking down the big story. >> that's exactly right. the dysfunction in washington, d.c. has been temporarily settled, everyone looking at corporate fundamentals now to
drive this market higher. first up on monday, mcdonald's, estimates according to fact setter, $1.51 on revenue of $7.3 billion. analysts looking at regional sales but they'll be focused on the u.s. to see if economic uncertainty and worries about the debt ceiling impacted sales at all. on wednesday dow component boeing reporting earnings. expectations of $1.55 on $27.7 billion on revenue. they released figures on its order book. the 737 is very popular. stock hitting all-time highs on that. today a warning about the 737-8, production adjusted lower due to weak demand. on thursday we'll hear from amazon.com and microsoft. amazon, looking for eps of 77 cents, revenue of $16.7 billion. finally on microsoft, looking for eps of 54 cents on $17.7 billion. the pc may be dead but analysts
will be look fog tablet sales and mobile devices for that growth. maria, congratulations on 20 years. >> thank you very much. >> we look at which names out next week matter most for your money. anthony, and chris. ian, you're up first. which one are you most keyed on next week? >> i think the most important earnings next week is caterpillar on wednesday. they seem to be the biggest proxy for all global economies, especially what's going on in china. that's a heavy portion of their business. >> i wonder, chris, if that really is going to be -- especially after what we heard from ibm regarding china, whether caterpillar is the one to watch if you want a good read on what's happening over there. >> yeah, i think a lot of the
names we're talking about today have implication in china. as it relates to china, if you look atesque v esqu escavator s seen sales to all of emerging markets, particularly in china, kind of ebb for caterpillar. we'll be watching those numbers particularly. i think data from cat is more reliable than data we get from the chinese government. >> it seems to me we always used to say the bricks or, you know, emerging markets. can't always say that anymore, right? you can't put these countries in one bucket anymore because they're so different. whether it be india versus china, russia, indonesia, all these emerging economies have gone different ways. which companies do you think, multinational names reporting next week, will actually get a boom from some of the positive stories? india has been up recently the last couple of weeks but it's having some issues relative to
some of the others, isn't that right? >> it sure is. the way we look at the emerging world is instead of looking at bricks, per se, we divide them into have and have nots. the have economies have a domestic demand story coupled with currency that isn't too dangerous, which usually means these companies don't have a current account deficit. i probably put countries likeco korea, taiwan, maybe even china into that category. and then countries like turkey, south africa, brazil, even indonesia, into the sort of have nots category. i would be looking at companies from some of those have places and some of the companies selling into the developed world where economic trends, frankly, are ber than in the emerging world as potential stock picks. >> ian, i better you there's going to be people on tuesday talking about coach as we start to walk up to the holiday season be, a company that's had issues,
losing share to michael kors and others, particularly in areas of their own business. >> yeah, that's definitely going to be another indicator to the consumer. with everything going on in retail, especially soft line retail, it's been terrible, with a few notable outliars like michael kors. i think this is a name that's important in terms of the higher end. ultimately it will come down if people want to believe what management says this time. >> any stocks reporting next week? what do you want to avoid next week in the face of all these earnings? >> i want to avoid caterpillar. i want to avoid united technologies. i want to avoid anything that's economically sensitive. i don't see any real recovery happening. to me it's a question of multiple expansion. we saw with ibm for those people participating for dividend yield and the stock is down 8% after it reports dividend yield doesn't look very good. >> i'll see your ibm and show you a ge and ingersoll and other
names from an industrial standpoint that lived up to the billing. >> there will certainly be examples of where earnings come in better. the question is, where's the revenue growth? is there any significant top line or capital expenditure going on? i still don't think you've seen that in a lot of the numbers. you have names like stanley black & decker, some home building stocks still lagging tremendously. >> all right, guys. thanks much. have a good weekend. >> thanks. happy anniversary, maria. >> thank you. 40 minutes to go before the bell rings on this friday. the s&p 500 is at 1742, up 9 points. it's been at this level, this new record high, over the last couple of days. dow is the laggard today. >> gold rallied, and we'll find out if this is a golden opportunity to buy gold here.
>> as we head to break, we wanted to remind you of all the places besides the new york stock exchange you've been reporting from over these past 20 years. ♪ come if you want to >> i'm maria bartiromo. today coming to you live from moscow. ♪ all around the world >> maria bartiromo, cnbc business news, doha. i'm maria bartiromo reporting live in london where the g-20 meeting is under way. >> from the world economic forum in davos, switzerland. >> i'm maria bartiromo today live from the singapore exchange. >> i'm maria bartiromo today coming to you from so palo, brazil.
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thank you very much. we have a lot going on. as i was saying -- >> we're looking at possibly a record day in terms of volume. >> i just left the crowd where dick grasso was standing. dick has all his lieutenants on the floor of the exchange. >> federal reserve chairman ben bernanke told me over the weekend that the media and the markets basically got it wrong last week in speculating that the fed is done. raising interest rates. >> she was practicing before the game. a little volley thrown for a strike. >> markets under intense pressure today all day today. the dow, s&p 500 and the nasdaq all showing sharp losses. >> in just a few minutes you'll hear whether greenspan wishes he
had put more warning signals out there about the possibility of the subprime mortgage meltdown. >> this is a true honor. >> good evening, everyone. i'm maria bartiromo. >> i'm john harwood. and welcome to cnbc's republican presidential debate. >> wow, so many memories in the past two decades at cnbc. bob pisani with me. we've gone through a lot of times here on the floor. >> we would call this the haircuts of maria bartiromo. two things stand out about your career. i've been with her the whole 20 years down here. number one, is your ground breaking work as first reporter on the floor of the stock market. i came after you. this woman was the hottest thing on television at that time. there was another important aspect people need to know about. wall street was a insular, closed community. you helped open up, for example,
the morning calls and all the information that was very much closed. i think that was another important part of your legacy. >> really, i think the morning call, opening up the morning call is one of the things i'm most proud of because that was research in the morning that big deep pocketed players paid a lot of money for. and just source after source of getting in on those trading desks and getting that information. it's 7:00 in the morning. really democrat tiesed things. >> they didn't give that information back then. you call up merrill lynch and say, what's on your morning call? hi, bob. click. that's what happened. >> it started with one guy, bill mcelroy. i sfoek him and he said it's okay if i did. he was at merrill lynch and called me up and said, i'm bill mcelroy, i want my research out there early. call me every morning at 6:45. i would get the merrill information at 7:00.
then he left and went to morgan and i thought, my information is gone. then i got morgan and -- >> and now everybody takes it for granted. >> it was great. >> the important thing is on the floor you had to face opposition from you, that didn't want you or anybody down here on the floor. it was a fraternity. >> one or two people gave me a hard time. but for the most part, i have to give a shout out to everybody down here, there's such camaraderie. the guys opened their arms, a specialist in ge, george, i'll never forget, taught me so much, took me under his wing. when i got married i was talking to a specialist, my back was toward everyone else, i'm just -- just talking about the markets. unbeknownst to me they put a ball and dhans on my ankle. >> one of the pranks they used to play to everybody. >> then i knew. they accepted me. it was good. >> you're referring to george mulnar, the old ge specialist.
>> yes. >> your career is still on the ascendency. we'll talk about it again. scott, back to you. >> thank you so much. >> as we remember, as we said, back to the '90s when maria first started at cnbc, this is a day on wall street that remind a lot of people of the late '90s given some of these extraordinary moves in stocks that we've seen. google is having its best day in a long, long time. that stock is up more than $100. chipotle, moving higher by $60 plus on a single day. you haven't seen those kind of one-day jumps for the most part since the late '90s, in the final days of the dotcom bust. the dow is holding onto its gain of 18 points. the real story, the s&p 500 trading at a new record high. outperformer today, s&p up 9 points. up next, part three of our
ceo/congressional summit on what washington needs to do to win back the trust. business world and the american people. you'll see it right here only on the "closing bell." the american dream is of a better future, a confident retirement. those dreams, there's just no way we're going to let them die. ♪ like they helped millions of others. by listening. planning. working one on one. that's what ameriprise financial does. that's what they can do with you. that's how ameriprise puts more within reach. ♪ nice car. sure is. make a deal with me, kid, and you can have the car and everything that goes along with it. ♪
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she comes up with great stories. she learns a lot. her viewers learn a lot. and it proves the point that if a person is fair and thinks about doing the right thing, they can succeed more than anybody. maria, you are just the best. god bless you. >> thank you so much. sandy weill, jamie dimon. >> tears may be flowing by the end of the show. >> this is a total surprise to me. i did not plan any of this, anybody. this is -- thank you to my colleagues. here on cnbc, some of our guests have been souning off about how washington could earn back the trust of the u.s. we talked to james gorman and asked him about the campaign contributions. >> all of the community -- because of the approval rating, all citizens have been disappointed. congress hasn't done what it's
supposed to have done. we're looking forward to people getting serious and dealing with the real problem. >> we have part three of our mini ceo/congressional summit, getting reaction from wall street and washington. giving us perspective from the floor, luke messer, robert wright, cnbc contributor, former labor secretary under president clinton. also in a new film "inequality for all." and joe, ceo of new york community bancorp ball mangamelli. thank you for being here. how do you win back? how do you win back the american people? certainly it seems as though the ceo of morgan stanley, james gorman, has hit on something here. >> you have to win back people by results. the last 16, 17 days in washington is not how this place is supposed to work.
government was shut down. now we have a new opportunity. you know, i know folks are a little skeptical. congress has a way of kicking things down the road. we have to get serious about spending. we have to look at entitlement reform. we have to figure out ways to come together. >> i think what frustrating people is that every time there's this crisis, it's the same old thing up. bicker, you get a deal and you all say the same thing after the fact. but nothing really changes. why is it going to change this time? what's going to be different? >> the president promised throughout the last couple of weeks that when government was reopened, we would actually negotiate. i think it's a good sign that the negotiations started the day after we opened. we didn't wait another ten weeks. i share your skepticism. i understand. the proof will be in the pudding in the coming weeks. >> i guess, does this dictate behavior in any way? for example, joe, you're running a major bank.
you've also contributed to michael grime's campaign. would you rethink that? what are the repercussions in a practical way? >> it's obvious the discussion around washington, very, very important. but the reality is that recovery necessitates some measure of certainty. what's going on in washington is driving everybody further apart and the uncertainty is increasing. we don't have the kind of recovery we need. cycle turn is inevitable. recovery, likewise, is inevitable, accepting when you're constantly driving it backwards because you're creating more and more uncertainty. what's happening in washington is very bad for the economy. very bad for the world. so, it would be very important for us to recognize that the people that are gaming this need to be identified and called out for doing so. the people genuinely working toward trying to find solutions need to be heard. and i don't know we're actually
getting the right balance in the coverage that exists. >> secretary rice, you've said recently that the atmosphere in washington is, in your words, the worst it's been in anybody's memory. how do we change it? we keep asking this question on cnbc. urging people on the hill to rise above. now it's win us back. is it even possible to do that? >> it is possible. let me congratulate maria on 20 wonderful years. maria, happy birthday -- happy anniversary. >> thank you. >> scott, let me just say, i think that every ceo on wall street, every trade association, everybody in corporate america making campaign contributions has to make it exceedingly clear there will no longer be tolerated weapons of economic mass destruction in negotiations. there is not going to be -- it should be off completely, out of
bounds, to shut down the government or threaten not to raise the debt ceiling. we can differ on our positions. there should be tough negotiations over the budget, but with regard to those two weapons, they should not be bargaining chips. and anybody who uses those weapons should not be getting any campaign contributions at all. particularly from wall street and corporate america. >> what's -- i mean, how then do you move the needle on a budget? maybe one of the reasons we find ourselves in this position is we haven't been able to produce a budget and pass a budget in five years. how do you come to ideas to reirein in spending, to live fiscally responsible. what's the answer? >> we have to have some program cuts and we also have to have revenue increases. everybody has to agree there is going to have to be spending cuts, have to be some entitlement reforms and revenue increases.
if you don't agree to those principles, if you just say, point blank, no spending cuts or, point blank, no revenue increases, then you shouldn't be at the bargaining table because you won't get anywhere. >> you're right. >> you run -- you're president and ceo of benigan's, well known as a restaurant franchise. you have an opportunity right here to speak directly to a u.s. representative. what do you want to hear from the folks on the hill at this point? >> what i don't want to hear is a lot of talk about -- as robert just mentioned, either addressing the spending side or revenue side. in my world, it's about specifics. we want to know specifically what's going to be done in order to get this economy back on an even keel. we talk about confidence and the wai waning confidence. we look at consumers who are
holding back their spending money. they're afraid of the other shoe that's dropping. we look at the small business owner, which really drives the entire nation that can't get a loan. now with the sba that has been on furlough for this length of time, loans have not been approved. what happens? we have a bottle neck of the approval of loans that will go to small business owners, like a franchisee for bennigan's that will provide jobs. and participate and contribute to the economic recovery. and yet we can't get that first step taken. even when there's debate on wage increases for the minimum wage, it's not so much the wage discussion, it's the anti-business policies holding us back. our corporate tax rate is still the highest in the world. there has to be some specific actions taken in order to
alleviate the concern and that 400-pound gorilla that's still in the room, even though we have a little bit of a reprieve. we are still going into that. and then pretty money. to get out of it. that's a recipe for disaster. >> gentlemen, thank you very much. great conversation. we'll continue to have it, we know. we do have new information we want to pass on to you from the federal reserve. chicago fed president charles evans saying while tapering was a close call in september, it will not be thought of in october. he told reporters, i haven't seen anything like what i thought it would take in order to get us to a yes on tapering. he added that economic data gathered after the government shutdown is going to have noise. tune into "squawk box" 8 a.m. monday for steve liesman's exclusive interview with charlie evans, head of the chicago fed. what a week it's been on
wall street. >> so volatile. >> the deal in d.c., this stock market hitting another record high in the face of all of that. who would have thought we would be here where we're talking about where we could go last week? >> and record high for standard & poor's. gold down more than 20% this year, but it's been rallying recently. find out if now is the time to buy back into that precious metal. >> maria, you've had your fair share of time on the silver screen. >> he's out with a new book and it is a shocker, believe me. it is called "is greed good". >> i must tell you your show is a big, big hit in the can. >> you watched it in prison? >> your show, me and a whole lot of others. >> a severe selloff under way. the dow is down 450 points in very heavy trading as wall street reacts to the terrorist attack of the new york city subway system.
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welcome back. take a look at this chart. gold started the week on the downside but rebounded nicely once a debt deal was anoinsed. the precious metal rallied 15% over the following 15 days. >> is this a golden opportunity to get in on the metal? no thomas, would you buy gold here or not? >> not really. i think this was a bounce. we had short covering. i think this is quite disappointing in terms of how we reacted to this stuff right here. >> got down to 1251 and then physical demand. basically this is just a transfer of the position from the etf to the physical market. we're just seeing this bouncing back and forth and sideways. it's in a little no man's land here. i think we'll get another wash out in liquidation and etf. if it gets down to 1050 level, then i would look at it. >> do you look at gold as a commodity or a hedge? because a lot of people say it's really not -- you can't even put
it in the bucket of commodities. it's a hedge. you think stocks are going lower, you hedge with gold. >> really, it's -- the real interest rated is the key. right now interest rates are higher than inflation so is that puts pressure on metal. when that changes you you'll see it in metal. that could happen in two ways. when inflation goes up, which could happen in a year or two, but i think people predicted it would happen sooner and people piled into the trade a year or two ago. that's changed. now that's changed back to a negative interest rate, then you'll see gold go higher. >> gold's at, what, 1315. a lot of people think it's going lower from here. >> we didn't settle at levels that would impress anybody. if we settled at 1330, technical levels but it's a bear market rally. until we really get to some key levels above 1400 and build
value up there, i'll still bearish and it doesn't look very good. >> good to talk with you. final stretch of trading. 15 minutes until the bell sounds for the week and day. >> we know you have a ton of fans, but only one, the great late joey ramone wrote a song, a tribute to you. >> it's true. ♪ what's happening on wall street ♪ ♪ what's happening on the stock exchange ♪ ♪ i want to know what's happening with stocks ♪ ♪ what's happening ♪ i want to know ♪ i want to see you ♪ ♪ i watch you every day i watch you every night ♪
♪ she really has it ♪ maria stocks rumble jackie: there are plenty of things i prefer to do on my own. but when it comes to investing, i just think it's better to work with someone. someone you feel you can really partner with. unfortunately, i've found that some brokerage firms don't always encourage that kind of relationship.
maria, the last 20 years were eventful but looking back they feel like a blink. i'm looking forward to seeing your reporting on business and markets the next 20 years. congratulations. >> oh, my goodness. thank you so much for that. >> jamie, sandy, lloyd? all the heavy hitters. >> thank you so much. >> joining us, another heavy hitter, michael darst and duncan. >> i'm here to do in person what they did on tv. congratulations. that's amazing. you must have started when you were 11 or 12 but 20 years went quickly. >> it did go quickly. one thing is the cost came down. the individual investor was wanting information. you witnessed that firsthand here. what a change. >> and you've been at the forefront of it. thank you for what you've done
for the industry and we love having you here every day still. so, thank you. >> thank you so much, duncan. i appreciate that. david darst, put money to work in this market? what's the word? >> yes, market's path of least resistance is higher. we've said this for a few weeks now. you have europe doing better. the european banks, maria, this month alone are up 8%. and they're now up 24% for the year. europe is healing. china is growing. the u.s. is growing. you have synchronized global growth. that's the first in quite some time. you see it even in the emerging markets. brazil, russia, india, are up 6% to 7% this month. our favorite, i would be remiss if i didn't bring up japan. the japan hedged equity index where you take the dollars out and there are ways to getting exposure to this. you want to basically continue to own this. we think the best is still ahead of us for japan. in spite of it being up 40%. >> 40 wow.
>> thank you for being a beacon of inspiration, insight and i e innovation here at the new york stock exchange. >> people are going to get sick of me after today. >> no way. >> people still think the best is still ahead for this market. at some point, david, do you start to get worried that where we are -- i think only a couple times since '99 has the s&p been up 20% before this year. we're up more than 20% now. is it going to end badly eventually? i mean soon. >> scott, third quarter earnings are supposed to come in something like only up 3% or 4%. nothing big. the first two quarters were 5 % and 4% growth. this is a market that is basically under-owned. the individual has fought this as the market doubled from a low in march 2009. it's basically people coming back into the market, in search of gain, in search of yield. our equity exposure as house holds of all american is only
40%. in japan, equities are only 5% of their total assets. >> that's a mentality change but you think it's going to happen. david, thank you very much. appreciate it. have a great weekend. >> up next, the "closing countdown". >> and google shares hitting $100 ever. is the stock worth that much? the company says the future is in mobility. one expert says, that's a mistake. we'll debate it later. looking at google on the "closing bell." you're watching "closing bell" on cnbc, first in business worldwide. es for those who stand ready to seize them. in a time when the biggest risk is playing it safe, we believe outshining the competition tomorrow requires challenging your business inside and out today. at cognizant, our flexible, collaborative approach helps forward-looking companies not only run better, but run different...
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we're back on the floor for the closing countdown. maria and david darst -- >> excuse me. >> i figured -- >> congratulations. >> oh, my gosh. thanks. >> i remember to years ago when you first started here. for everything you've done. >> that's gorgeous! >> how do you like that. >> cnbc 20. >> i didn't make it, though. i would have made it, you know. you know me. >> i'm sure you have a recipe for one. >> i do have a recipe i'll feature on monday. >> thank you. you're so sweet. i just to want say i gave a shout out earlier to everybody on the floor, but this is the most unbelievable place on thec friendships -- >> they have no idea. >> they have no idea. but i know. i want to thank you for the last 20 years. >> thank you for all you've done. >> darst, you want to hold the
cake? >> i think i'll take my cake and get going now. yes, i'm going to have my cake and eat it, too. >> we'll make you hold the cake as we talk about the markets here. >> i'll go back to the set. see you at 4:00. david, have a great weekend. >> congratulations, maria. >> actually, we have breaking news with kayla regarding jpmorgan. >> we hate to break up the camaraderie but getting headlines with jpmorgan reaching a tentative settlement with federal housing finance agency for $4 billion. this is according to dow jones. it says the settlement stems from claims the bank misled fannie and freddie over mortgages it sold them. remember when the bank sold them mortgages it said roughly 80% of the mortgage-banked securities were related to bear stearns, two failed institutions that jpmorgan ended up buying. this is not the big settlement we were expecting.
that would have included the department of justice, fdic and several state attorney generals. this appears to be a piecemeal settlement for jpmorgan that it reached a tentative settlement for $4 million with the fhfa. >> thank you. you see the stock moving on the idea this is jpmorgan getting one of its issues behind it as it still pursues that greater settlement. we're back here on the floor with david darst. it's been an amazing several days, david. we were wondering if the whole thing would fall apart, the economy and the market, as the debt negotiations were going on in d.c. since then you've had a nice run in the stock market. can it continue? >> i'm amazed at how the market has acquitted itself. volatility remains low. people are willing to pay up for earnings. we like health care. we still like health care. it's one of the leading groups. we like energy, baker.
we like slum bstj. we like japan, mass limited partnership, scott. and the real estate investment trusts have come back to life. they're up 6 % for this month, which is their total gain for the year. they were flat for the year. >> rates played a role in that. as rates have come down, yield plays have become more attractive. as we look at some of these stocks today, whether it's google, you don't see a stock go up 100 bucks plus in one day. chipotle in its own right, up more than 60 bucks. morgan stanley had good earnings. i won't ask you to talk about that for obvious reasons. does it give you cause for pause when you see gains like that? as we're remembering, maria in the '90s, some people the market in the '90s, when they see rates like that. >> good point. you're beginning to get a bit of froth. not excessive but no question froth is coming back.
we watch your show at midday like religion. have you been very, very smart and patient about basically alerting people to some of these stocks, some internet retailers, they're selling for multiples that are back to 1999 level multiples. so, be very careful. buy value, buy good quality. we do like industrials. we like some tech, health care, energy. be very careful in the tech space with these overvalued tech stocks. make sure your financial adviser, your investment guru basically lets you know highway these are being valued right now because they are a bit excessive. there was nonchalance and now a bit of exuberance. >> yesterday some of the outlooks were less than to be desired. all of a sudden today, today we're talking about derek -- as i said, the googles, ges,
ingersolls, where earnings were good and now it's great. >> this is a harry potter market. the market wants to believe. >> good way to put it. second hour of the "closing bell" begins in five seconds with maria. have a great weekend. >> and it is 4:00 on wall street. do you know where your money is? hi, everybody, welcome back to the "closing bell." i'm maria bartiromo. s&p 500 at an all-time high. google earnings powering the s&p 500. dow jones up 25 points to 15,39 6. volume picked up as well at the end of the day. nasdaq higher by 51 points. technology on the upside. google among