And all of the major averages are doing very well today. The dow and s p are in record territory. Have you seen the transports . Even though oil is up sharply today . Transports up 3. 4 . Also in record territory. Big recovery there. Transports are recovering. Technicians want to see the dow move up together. Also big interviews after the bell tonight. We have clorox ceo here. Both here tauming about earnings and the economy. We will also ask about a new report that the ratings industries are loosening standards again. That reaction, stay with us. Takes a look at sfly. It is a pretty picture. You got that . Got it. Got it. Stock soaring on news that it actually lost money but not nearly as much as the street had expected. So it is off to the races for shutterfly today and its ceo will be here in a few minutes. We will talk about how you make money in that growing part of this business. So shall we check where we stand right now going into this final hour . Here are the numberes. Dow jones industrial average up 127 points. Almost 1 of the closing high. Alltime high. 15,567. So anywhere above here, above obviously 567 is alltime high material. Record high for the dow. Check s p 500 and nasdaq here. We have money moving into tech once again. Nasdaq up. This is hanging around around the 13year high on the nasdaq of 36. 61. Gain of 1 1 4 percent. All time closing high. 16. 95 and change. We are above 1700. Amazing rally once again. And we will have a lot more on the markets coming up. But first, breaking news from motorola. Just unveiled its first phone jointly developed with Parent Company google. John fort with motorola, over to you, john. Moto x is always listening. Navigating to golden gate bridge. Reporter it accomplishes that by packing a lot of smarts into a small frame. There are eight processors in moto x, two 1 giga hz. One handles voices and another handle essenceors. A company near fort worth will build moto x. So 70 of the operation is happening in the u. S. What that means is, it comes from china, korea all over. Ordering phones and getting them delivered within a week, im here with the ceo of motorola, googles wholly owned division, Dennis Woodside is here. First live interview as ceo. Lets talk about this. This is an important phone but d apple are dominant. Ent where they spend hundreds of millions of dollars a year on marketing that appears to be table stakes to really gain share in the market. Many others cant do it. Is google going to give you marketing dollars necessary to make this a success . Thanks, john. First of all, success in this market requires an awesome product. You dont need to touch the phone to make a call or navigate and you can imagine when you are in the car, it is dangerous to touch your phone. You wont need to do that any more. It all starts with the product but of course we will market the product as well. We have to be scrappy, were the challenger. So as you push this out in the market, are you going to have enough is you ploy to meet q4 demand . You are launching ahead of q4. Doing assembly for the first time, might you be constrained . Ramping up a factory, that was literally empty 12 months ago. Hiring close to 2,000 people already. With all of the machinery in there. Making the device right now. We are ramping as quickly as we can to get the product into market and meet the demand. 199 is the business price, i understand the launch window is from late august it early september. The colors customizable would be available on at t. Why not do the colors with everybody off the top . One thing that we think is really cool, typically, as long as it is black and white, and what we think we can do enabling the phone to be customized. You can order in teek, ebony, and wood is really hot right now. Big screen phones are in. You decided not to go big. You argue this is the right size for most peoples hands. Have you touchless voice command level that nobody else has got. What is motorola going to be about to move forward . One of the things we think important is Power Management and managing the phone so it can do these things throughout the entire day. One of the processes that you mentioned is always processing information, coming off the sensors. But using really little power. So sipping power. So with the flick of my wrist i can open the camera. Because that processor is always working for me. I can speak to the phone. It will respond. Even when the phone screen is off. The phone is always listening for my command. Even with those functions, i should get twice the life on this as i do my iphone 5. You say you have lower end phones coming later in the year it addressee merging markets. How many of these features will be in those phones as well . So we think the Value Segment is a huge opportunity. Interest there is about 1. 3 billion. The potential mark set all 7 billion people on the planet. Also, with the moto x well move more and more of that technology and devices that have some elements of what you see here, so stay tuned. Thanks for coming first on cnbc, dennis. Quite a launch here. Eric schmidt was here as well. We will see what reception is. It really matters. Sales, if we get those jobs in the ft. Worth facility, all those things, they got to sell this thing. We will see how it comes off. Guys, back to you. They are off to a good start. Back to the markets, bull rally gaining even more momentum. Bob pisani, you look everywhere. We have all kind of benchmarks being set. We do. Twice the battery life of an iphone, i will watch that carefully. That will attract a lot of people. Lets look at the dow. We are sitting right near the highs for the day. Not quite at highs for the day. We would be right there if it went for exxonmobil. Here is what is motivating people. That this is the most important data point for the beginning of the secondhand. It has ism none numbers of perhaps rebound. China, u. S. , ecb says Interest Rates will be low for a long time. Question is Interest Rates. What is happening . Put up the next screen here. Adb pet bet are than expected. Markets held up overall. Ism came out bet are than expected. Rates came up. Markets held up. Now the big question is the jobs report for tomorrow. Maybe better than expected. Will rates go up and stocks go up . Bill, if that happens then the market will be convinced it can handle higher Interest Rates over all. What is dragging things down is exxon oil. I will make it simple for you guys, big oil is having trouble growing. They cant find enough oil. Even though natural gas is plentiful, it is the same problem. Royal dutch has the same issue. I will explain what happens in about 30 minutes from now. We are looking at charts of exxonmobil and Royal Dutch Shell in todays talking numbers. With less than an hour left, the dow and s p looking to close at alltime highs, lets break down todays numberes with rob morgan. We have john stoltz joining us from the big board and mike from yahoo finances. A twoyear high at 2. 72 , you think thats okay with the Federal Reserve . I do think it is okay. I think it is the velocity that matters. They dont want it leave the impression they lost control of the curve all together. I think it makes a lot of sense to kind of, those holders, treasuries, getting nervous ahead of tomorrows number. So i think this zone is okay for the stock market as well. I dont think one way or another it is a boy at the levels but at this level it is fine. John, youve been recommending u. S. Companies that pay dividends. That obviously are growing. Cyclical games in plr particular. Is that still the play . Still the play. We still believe we are in recovery process. We think this is a new water shed number. But yet it will likely be tested as a contrarian, my immediate thought is here, when are they going to take profits . What i would expect is profit taking is likely around the corner after we if we can close here at 1700. I think then, then we can move higher from here. It is obvious the bond market continues overpriced testing for new levels. And the Federal Reserve, we think is likely to raise rates towards the end of the year rather than in september. Lets talk about that, rob morgan. In the rally we see lately, including today, is this about fundamentals in the economy or is this about their view of when the fed plans to start taper awning quantitative easing . I think this is about fundamentals. When fed chair bernanke on june 19th first brooched the topic of tapering, the dow is down the next day. Thats the biggest drop on the year. But two weeks ago in front of congress for two days we talked about it incessantly and we started pushing up against record highs. So i think that that has been for the most part i do jested. I think itll happen at some point and i think the funding or to answer your question, it is a fundamentally driven market. Guys, when do valuations begin to matter or become a concern . Can we just keep rallying going into the beginning of tapering . You said, john, you think the end of the year. Yeah. P. Does this continue until the end of the year . What concerns you on valuation . Maria, i would probably get concerned if we run into multiples of around 19 times. 14, 15 right now . Right now, about 16 and change. We operate on a trailing 12. So we can always consider what consensus wants to say earnings will be come in. We look at the trailing at 19. Im not saying by the end of the year. Thats kind of our point where we would get concerned about valuation to revisit. That said, what we have is migration back into equities. After six years, overdoing it in the bond market. It is time for equities and baby boomer generation, needs stocks that can pay dividend, grow dividends and offer capital appreciation. This may be a water shed. I was saying yesterday, it is becoming harder an harder for Value Investors to invest. And you need a growth investor to like this market because it is about growth. When do you think the feds will taper . They keep saying it depends on the economic date why and lately the Economic Data is getting better. I dont argue with the consensus of septemberthe the risk they have a lot of lee way because inflation is so low. Thats one element they touched on the statement yesterday. So to me the fed is not necessarily the swing factor. I know it would be a very good excuse for the market to have anxiety in there. I think theres nothing cheap in this market except for the real ugly, ugly stuff that nobody wants. Like coal stocks and emerging market stocks. Russell 2,000 is at your 19 times trailing earnings right now. I think small caps are very expensive. We are paying for fundamentals that built up over three years. People are recognizing fundamentals are improving and it is how far that recognition phase is and the overshoot to the upside. I dont really know. I dont know if anyone wants emerging stocks, by the way. Was it larry yesterday . Larry said he is starting to chip in. Because of valuations. Would you buy merging markets here . Yes. We would begin to buy emerging markets. We wouldnt back up the truck, but we would be selective and work on allocation process, and within the emerging market class and also buy ifa because we think the developed markets are the first ones to lead, the developed markets, u. S. And canada, europe, japan is on line with abes work. And very positive picture painted here. Not without potential near term potentials but the glass is half full. Well, with the glass half full, depends on whether you are drinking or pouring. Heading towards the close, 45 minutes left on the trade day. Looks like record highs with the close. With dow up 123 point right now. When you think of shutterfly, do you think of billionaire investor . Doesnt necessarily go hand in hand, right . Turns out, thats one of his Top Performing investors. Up 97 year to date. Not bad. We will talk with jeffrey housenbold. Find out how he plans to fight off competition thats closing in on shutterfly. Very 90s to see that stock with that profitability. And we will talk with Robert Benmosche. We are still to come on closing bell. [ kitt ] you know whats impressive . A talking car. But ill tell you what impresses me. A talking train. This ge locomotive can tell you exactly where it is, what its carrying, while using less fuel. Delivering whatever the world needs, when it needs it. After all, whats the point of talking if you dont have something important to say . To close at high he today. Josh lipton, over to you. Tracking big name movers, winners include Pioneer National resources. Exploration and Production Company swinging into Second Quarter profit. Chesapeake energy another winner. Better than expected quarterly profit. Producing more crude oil than forecasted. And how about facebook. That stock up 40 since reported earnings. Trading just below 38 offering price right now. On the down side, new york times, eps, beats estimate but revenue slips and missed what street wanted to see. Exxon another one in the red. Though now off session lows. Posted fall and quarterly profit oil and glass output production. We will end on shutterfly. Revenue beat, the street reacts. All raising their price targets. That stock up today, up near 100 so far this year. Maria, back to you. Thank you so much, josh. We want to find out how shutterfly is capturing the market share and will the momentum keep going . Jeffrey housenbold, ceo, good to see you today. Thanks for having me, bill. Obviously, gaining market share. Weve been profitable since 2003 but the seasonality of our business, we are typically break even to slight loss in the first three quarters of theier year and we make most of our profit in the fourth quarter. We had record revenues and profit and record revenues for 50 consecutive quarters. When does the growth come for the next stint . The stock at an alltime high today. We are watching the market like your story. But there are some out there who are worried about the under penetration of the mobile side. Mobility is the big story of the moment. What about mobility . We have extended our market share to 56 to 59 in the market and we are making significant investments about 50 of all of our r d dollars are in mobile. We Just Launched a new ipad app for shutterfly. We have an iphone app for shutterfly. And we are launching several during bile initiatives the quarter, including our new enhanced Cloud Service. So is that the Growth Strategy . How do you grow this . I was thinking about that this morning. Everyone is taking pictures these days. We are all photographers now that we have our cell phones that take and they are good pictures. And the quality gets better and better all the time. You have to put them somewhere and shutterfly is the place to do that. So how do you grow the company and make money at the same time . You know, the part that gets us excite said that 90 of this 30 plus billion dollar market is still occurring off line and traditional retail. As the market leading Online Player who is helping people make their turn their pictures into extraordinary and personalized gifts, we think that migration from off line to on line will benefit is. But we are helping consumers reduce friction points. Our new enhanced Cloud Service will be able to grab your pictures regardless if they are on flicker or drop box or face boom or shutterfly and it automatically goes into the cloud. If you take a picture on your mobile phone, it land on servers and we have 20 billion customers precious memories. We can use proprietary technology. What would be an appropriate growth rate for your company in the coming five years . What should the market expect . We havent given longterm growth model to wall street. But we grew in the most recent quarter, 35 . And so we have been averaging above 30 growth for several quarters. And we just upped our full year guidance to the midpoint of 779 million with 18 to 19 margins. So we will have record revenue and Free Cash Flow this year. If im google or yahoo or microsoft or any of the Technology Giant out there, im licking my chops. Im saying i must have shutterfly. It is that is the Business Model for the future. The diversification that comes in technology these days and photographs would be one key of all of that. Dont you think youre a perfect candidate for acquisitions . Have you spoken to anybody . Could you be for sale at the right price . You know, weve been focused on building a largent prize that stand alone and independent for our customers. But as an independent company we have to acquire customers one at a time. So we partner with folks like yahoo microsoft, best buy and Davids Bridal and target, where they help us get customers. We can be an independent company down the road. But as a public company, if the along, fer came ertainly the board would consider that. But our focus is really about building a large standalone company. We will leave it there. Good to have you on the program. Weve been watching the success. Thanks for joining us. Thanks, maria. See you soon. Heading towards the close. 35 minutes left on trading session. We are losing altitude. The bias is the buy side. But thats softening a bit as we good here. We are up 105 point on the dow jones so far still if record territory. Thats where the weakness is in this market, check it out, exxon right now, down 1. 5 . Royal dutch shell down almost 6 . Getting hit hard. Up next, we will find out if shell sell off is an opportunity to buy either of these names. Back with that. Also, financial stocks are a major catalyst of this rally on the other side. Later, noted banking analyst anton schutz says he has two bank stocks that are still cheap in that category and you should own them now. Those names coming up. With fidelitys options platform, weve completely integrated every step of the process, making it easier to try filters and strategies. To get a list of equity options. Evaluate them with our p l calculator. And execute faster with our more intuitive trade ticket. Im greg stevens, and i helped create fidelitys options platform. Its one more innovative reason serious investors are choosing fidelity. Now get 200 free trades when you open an account. Time to have new experiences with a familiar keyboard. 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