Dow. We know what happens to the dog of the dow the next year. Last years worst performer was hewlett pack add. I was going to say. This year, the best performer. And best buy, if you could just if everyone could time the bottom. Well, of course. If you could buy at the low, you could sell at the high. Thats the secret. Well talk to mr. Kleinfeld about that. And good news for the tabloids, maybe bad news for the banks, because hes back. Eliot spitzer is seeking office once again. He could very well win for the office hell run for. Now, wall street and the banks that spitzer famously went after are on notice and some are already showing concern. Well tell you why coming up in a little bit. Great story. Yes, it is. And the investigation into the crash of that 777 in San Francisco continues. The focus seems to be on the pilot who did not have any experience landing that model plane at the San Francisco airport, and attempted to abort the landing seconds before the accident. So should there be more transparency on who is at the helm of the planes that are flying before takeoff . Well look into that and well have a live report. Thats a tough issue. Lets show you how we do right now. The dow is up 97. We were up 127 at the peak, at the open this morning, sort of been drifting since that time. But at the higher levels. Nasdaq was actually negative for a time. It is just now turning positive again, up about 3 points at 3,482. So clearly, technology is lagging so far today. Intel is being among those laggers. S p is up 9 points,. 5 at 1,640. So off the highs of the day, but markets are still on pace for a threeday win streak. Lets talk about it in our closing bell exchange. Joining us is rob and brian, bill and our own rick santelli. Gentlemen, thank you. Rob morgan, what do you make of this . I was joking, is the correction cancelled . We had a 5 pullback in stocks, and now suddenly, were flirting with alltime highs again. Russell 2000 is at an alltime high. What happened . Yeah, bill, i tell you, i think the broad market is just buying on the dips. It is interesting today, though, that the nasdaq is struggling. I think part of that is earnings expectations for tech companies, along with industrials and materials, have been ratcheted way back. But overall, obviously, a good tone to the markets today. Its interesting, as well, that the underperformance is happening in tech at a time when, you know, innovation and technology are the most important the most important things that are kind of driving companies more broadly. Why do you think it is, rob, that tech itself isnt benefitting more . Well, kelly, i mean part of the reason, i think, is because some of the stocks in the sector just got ahead of themselves pricewise. I agree with you that theres certainly a lot of innovation going on. But you got to figure out how much youre going to pay for that, as well. Right. Brian jacobson, it says july, were in the summer, used to be the doldrum. No longer. Its a busy week weve got coming up. An important speech on wednesday by fed chairman bernanke. What else are you looking for . Well, this week its probably all about the Federal Reserve and when we get to wednesday, its obviously the fmoc minutes and then also bernankes speech later that day. Earlier, kelly had mentioned about if we could only buy on the dips, and that would be very nice. But then those dips wouldnt be there. I think to an extent thats what were seeing is a lot of people are looking for the great opportunities. Nobody really wants to miss the next dip, and so thats why you can see a bullback of about 5 pullback of 5 but capped at that level. For the balance of the week, im interested in what will happen with the earnings coming out, what the fed chairman is going to say, but also whats the strength of the market. How broadbased is the strength that were actually seeing . And, bill, its happening because theres so much focus on whether people are going to start shifting funds out of bonds and importantly into the stock market. So far, weve only see the first half of that equation. Thats a very good observation. Its only bill nichols, this is your question. Sorry about that. No problem. Well, i just think with the 10year going up to 2. 70, its interesting to see what people are doing. I think in the last week or so, a lot of the participants in the equity markets were out, and now theyve come back a little bit. They see the markets have stabilized, starting to wind their way back into the stock market. Yeah. Rick santelli, got up this morning, and what did i see . 2. 72 on the 10. Is anybody talking about a 3 handle on the 10year yield yet . You know, they are talking about it, and i think its highly possible, because even though were 10 basis points off, we actually are at 2. 74 briefly right before midnight, we are still at lofty levels, secondhighest closing yield, even at 1. 64, going back almost 23 months. The issue is the deleveraging, involuntary selling. I dont think it was voluntary. I think we may have more bouts, but for now, the game changes a bit. We see certain etfs like the lqd, mub, they havent responded as well as stocks have on the rebound. But yet, theres many now talking about a new carry trade where you buy a 10year note and sell a 10year jgb ands there 180basis point spread there. Or the auctions coming up, where the rising yields may appeal to a new crowd. So i think all this is going to be an ongoing evaluation. But im certainly not surprised that rates have not come down as much as would have said this many weeks after the fed meeting. Rob, i wonder, as well, the talk rick raised the issue of etfs, and weve seen the pickup in the etf volume every time weve seen the market sell off this year, and talk about the role the instruments themselves are playing, and what theyre telling us about whether its a retail audience selling out, whether these are hedge funds covering i mean, is it short positions . What is happening here . Is there any reason to be concerned about the role etfs are playing . Well, kelly, i dont think theres necessarily a reason to be concerned about the role broadly etfs are playing. I do think in some in some small liquid markets, there could be a reason to be concerned there. But broadly, i dont necessarily think so. But certainly, the advent and the boom in etfs has added some volatility. Theres no doubt about it. Because does anyone just own alcoa out right anymore . Does anyone buy an index fund way way or another to basically get access to that . Rob . You know, i i think that people stocks people still own stocks, but those people tend to be the institutional investors. I think more and more Retail Investors are getting into the etf space. That conversation has certainly picked up through the recent past. Brian jacobsen, i know life is not that black and white. But what, in your view, is most important to the stock market right now . The fed Monetary Policy or the fundamentals . And especially the earnings were going to get this week. I think that the fed is actually part of the fundamentals of the market. If you think about it in terms of their provision of liquidity to the financial system, determination of shortterm Interest Rates. So we have to think stop thinking in terms of the dichotomy between the fundamentals versus the fed, and think of the fed as part of the fundamentals. But this week, i think that on the margins, we are going to see the minutes of the fmoc meeting being pivotal for this particular week, but over the longer term, over the next three weeks or so, i think its more the earnings picture that are really going to drive the individual names that we still buy and sell. Yeah, sure, the earnings picture, one that looks a little worrisome. Unless, of course, you say, all right, all of the bad news is factored in, stocks are at new high, even though weve had, bill, an extremely high ratio of negative preannouncements. Well, i think earnings will tell the story in the next couple of weeks. I think you mentioned that youve seen preannouncements, and most preannouncements than the past couple of years. But its the earnings, and the valuations arent that stretched. If you see a beating of the lowers expectations, i think the market will be here and trade higher. When they rally too fast, you sell them. If they sell them too much, weve seen the last week or two, its a good time to buy them. All right. Puts it that way, its easy. Guys, thank you very much for your time. There you go. Thanks, gentlemen. Adding 100 points, the dow is creeping close to the record close it set in may. Josh, how close are we . Reporter another day in the green here. We keep getting closer to new alltime highs. The dow right now only some 200 points, or about 1 , from a new record close for the blue chips. The s p, some 30 points, or about 2 , from making a new record for the benchmark gauge. Today, a host of big names making new alltime highs of their own, including amazon, which moved higher. Stock now up some 15 so far this year. United health also hitting a record high. Barons saying the stock of the insurer could surge 40 over the next two years. Starbucks edging into the green, touching a new alltime high in the process. That one up nearly 30 so far in 2013. And one final mover to mention, dell. Carl icahn and southeastern urging shareholders to vote against michael dells offer to take it private, this after Investment Advisory firm iss recommended shareholders vote in favor of dells offer. Kelly, back to you. All right. Thank you, josh. There are now just about 50 minutes to go before the closing bell. Did i get that right . Well done, yes. You got it. The dow is adding 94 points at the moment. The s p is up about a. 5 . And the nasdaq is the lagger in the market. Now, hedge funds or the government. If one is suing the other, who do you rout for . We have a hedge fund now suing uncle sam, and it goes back to the Fannie Freddie situation, with the taxpayers in the middle. This could be a huge one, this could go to the supreme court. And stocks inching closer to new high, but that was anything but the case 81 years ago today on wall street. Coming up, find out how history in a bad way was made back on july 8, 1932. Video taken by art by the way. Oh, no. Alcoa getting set to kick off earnings season after the bell. Chairman Klaus Kleinfeld will break down the numbers exclusively on closing bell for us and tell us how he plans to turn around what has been the worst performing dow component this year in 2013. Stay tuned. Yeah, im married. Does it matter . Youd do that for me . Really . Yeah, id like that. Who are you talking to . Uh, its jake from state farm. Sounds like a really good deal. Jake from state farm at three in the morning. Who is this . Its jake from state farm. What are you wearing, jake from state farm . [ jake ] uh. Khakis. She sounds hideous. Well shes a guy, so. [ male announcer ] another reason more people stay with state farm. Get to a better state. Get to a better state. When you do what i do, iyou think about risk. I dont like the ups and downs of the market, but i cant just sit on my cash. I want to be prepared for the long haul. Ishares minimum volatility etfs. Investments designed for a smoother ride. 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Reporter bill, the hedge fund Perry Capital is suing the treasury and federal Housing Finance agency over a 2012 measure that eliminated future gains in the investments in fannie and freddie. Perry, which manages about 9 billion, bought a substantial amount of preferred shares in 2010 with the expectation theyd pay off handsome dividends. As it turns out, they have, in the form of a 66 billion payment to the treasury just last month. The largest dividend on record. But they and other investors arent sharing the pot. As part of the government takeover of fannie and freddie in 2008, they were expecting an annual 10 dividend once the agencies returned to the black. But under a 2012 amendment to that act, known as the sweep amendment, that Profit Sharing was eliminated with only the treasury benefitting. Perry now argues that the sweep amendment undertaken by the treasury and the fha was arbitrary and wrong and it amounts to selfdealing by the government that destroys billions in value. The treasury and fhfa have declined so far to comment. Skeptics point out that the 66 billion dividend helped stave off an ugly debt ceiling debate for another quarter or two, kelly and bill, but a court will have to determine whos right. Kate, you also just broke a story about the banks and Capital Requirements. Can you bring people up to speed on whats going on there . Reporter absolutely. So the fdic is expected to announce new Bank Capital Requirements tomorrow morning at 9 00. And we are hearing that the standards will be tougher than originally thought. Under basel 3, as a reminder, they have to hold 3 of the common equity against total asset the, meaning they will be able to borrow a little less in the future as a way to stave off future systemic risks. But under tomorrows proposed guidelines, that 3 figure goes to 5 . This requirement known as the simple leverage ratio could be a big negative for goldman, jpmorgan, and other banks since offbalance assets are likely to be included in the asset allocation, but they may have sympathy from the fed, which was said to be open to higher borrowing levels as recent as their meeting last week, and maybe with the fed, Public Commentary, they may be able to sway regulators during the Public Comment period that that follows that the number should be closer to 3 than 5, which would enable them to borrow a bit more. Better than 6 . I know the banks sold off after the news. Well keep a close eye on them, especially into the closing bell. Kate kelly with us. Thomson reuters, another story were following, suspending its practice of allowing some clients pay for early market data. Ayman broke the story. He joins us with more details. Hey, aayman. Reporter the investigation extends beyond just thompsson reuters and that investigators are prepared to follow any logical leads they develop as they investigate here well beyond Thomson Reuters into other unfair market advantage based on timing disparities in the market. Now, as you say, Thompson Reuters announced late last night it would suspend its Early Release of the university of Michigan Consumer sentiment data. Heres the statement, though, from Thomson Reuters. They said theyve done this at the request of the new York Attorney general, but they also say that Thomson Reuters strongly believes that news and Information Companies can legally distribute nongovernmental data and exclusive news through Services Provided to feepaying subscribers. So Thomson Reuters there defending the overall practice here in general. Eric schneiderman, however, disagreeing with that in his statement today. Heres what the new York Attorney general has said. He said the Securities Markets should be a level Playing Field for all investors and the Early Release of data undermines fair play in the markets. Now, bill, i should say that this broader investigation beyond just Thompson Reuters could have implications for other news and Data Services that send information on a highspeed basis to market participants. A lot of those folks will have to be looking very carefully at their arrangements and figuring out whether or not they violate the spirit here of the rules that the new York Attorney general is citing in this agreement. Thompson reuters has said all along this was disclosed publicly, it was in their fine print. I guess we found Something Else that didnt read the fine print, ag schneiderman. And they said this time around it has continued to disclose this publicly and it will continue to disclose this publicly. They defend the practice. They say theyve done this now voluntarily, the suspension of the twosecond Early Release, but they did it at the request of the attorney general. All right. Eamon, good stuff. Thank you. Again, the dow up 89 points. It was up 127. See if we can get back to the high of the day before the session is over. Friday, we saw things going high into the close, and it will tell us about the sentiment. Priceline took a hit after killing off William Shatner as the pitchman. Since resurrecting the character, the stock is red hot, up 40 this year. Could this be the first 1,000 stock . Guess not the first. The first were watching this year. Someone out there says the stock is still a deal and could be headed for 900 next. Well look at the charts on that one. Former new york governor Eliot Spitzer trying to resurrect his own career. See congressman wiener for that one, right . Hes running for new york citys comptroller office, but are his lon