Address the nation tomorrow night. Theres a push to have syria hand over chemical weapons as michelle was alluding to. Well have a live report with the latest on this fastchanging story. And sitting senator takes on the Supreme Court. Elizabeth warren saying the justices are far too friendly to corporations and went as far to say the high court is becoming, quote, a wholly owned sunday bsy of big business. She didnt stop there. You want to hear her controversial statements later in the show. The Dow Jones Industrial average is up nearly 150 point, retaking 15,000. Nasdaq is having a strong day. Technology along with materials. S p 500 is up about 1 . Joining us now on our closing bell exchange, stan stowst s is towall, Richard Bernstein from Richard Bernstein advisers and our own rick santelli. Sam, do i read correctly the market liked this possibility maybe there was a solution with syr syria ceding control of their chemical weapons . Absolutely. They hear everyone from people to the pope hear why we shouldnt have gone into syria. I think the president painted himself into a corner, so an opportunity to save face and at the same sometime try get rid of chemical weapons gives this gives him an out basically, possibly . I think it does give him an out at the same time it says he can say to the world that we focused attention on it and took it away from them. Rich bernstein, the market was having a pretty good day before this news pushed it yet another level higher. What is today about . Is it about better economic numbers around the globe . What is it . I think its a combination of things, scott. I mean, certainly you mentioned syria. Thats part of it. It is better Economic Data around the world. I mean, its pretty clear that the Global Economy is starting to recover. We could argue about how much. And how vigorous that recovery is going to be. Think of what expectations were a little while ago the Global Economy was going to sink into nothingness. I think its that and i think its a combination also that, you know, u. S. Fundamentals continued to improve. Theyre not strong on an absolute basis but they continued to improve. Youve been bullish for a long time here, rich. We had a little stall for a while. You think were where do we go from here . How much further can it go . Michelle, i still think were in one of the biggest bull markets of our careers. Thats been our story for the past several years. Thats still our story. You know, look, were in a very typical midcycle environment right now where you have the question of kind of this tug of war, if you will, between the negative side you have rising Interest Rates. On the positive side, you have improving fundamentals. And the midcycle of every cycle, not to use the word again, but the midcycle is always about that tug of war and whos going to win. And in august, i think people thought that the fed was going to win. Now people are not so sure that the feds going to win that tug of war. Rick santelli, if rich bernstein says were in one of the biggest bull markets of our career, are we entering a bear market and one of the big oes of our careers in bonds . Now, be nice, scott. Come o you knew i was going to have to go there, rick. Ill tell you what, i wish i could believe rich as well, but more importantly, i wish ben bernanke would listen to rich. At the end of the day, im not so sure i disagree. There are good things going on domestically and globally. How can i truly be sure . I cant be sure because in the back of my mind i see fmoc committees or obanomics contesting these programs. If it wasnt contested, abe wouldnt need the stimulus hes throwing in. I think the jobs number was disappointing but i thought the gdp in japan was positive. I dont know about the sustainability. Mark tepner, what in. Were bullish. We think the market is in a shortterm funk. We expect volatility over the next few weeks, next month. Theres uncertainty whether or not the fed will begin tapering. We think that will happen in the near future. Theres all these issues with whats going to happen in syria. Investors are requiring a serious risk premium in order to put their cash to work. For our investors, our client, were not as concerned whats going to happen over the next three weeks as over the next three years. When we look over a threeyear basis, we feel stocks look attractively valued and we think Earnings Growth is going to accelerate significantly when you look at cyclicals opposed to defensive. What area do you think people should be looking at right now . The laggards inrally, the materials, which are looking better . The materials are looking better because the emerging markets are improving. Our strategist wrote a story how there are two parts of the emerging market environment. Those that are trade deficits and those without. Its those without the trade deficit are those likely to do better in a rising interest rate, strengthen dollar environment. What do you do with the ones that do have a trade deficit . You run for the hills like everyone has been doing . There are better opportunities. I think were focusing more on the cyclicals rather than defensives. Like mark said. Because defensives have high yields. I dont think that premium has been worked off just yet. Rich, to sams point, what do you think of the emerging markets, just given the beatdown theyve taken amidst all the taper talk . Well, you know that thats like asking rick a question about treasuries is asking me a question about emerging markets. I still think the emerging markets have deepseeded problems investors have not come to complete grips with yet. Emerging markets are the ultimate, ultimate play on the credit bubble. I think most people would agree the credit bubble is deflating yet they want to invest in emerging markets. I think thats inconsistent. If youre worried about inflation f youre worried about out of control money growth, you have to look no farther than emerging markets. Whereas here in the United States, money growth is smack on the longterm average. Its ridiculous how boring it is here, but overseas you have big problems. Mark, you talked about cyclicals a little bit. What else . Within the cyclical space we like technology, financials as well. One of our core investment themes is the fact the Capital Stock in the United States is aging. Theres been very, very little Capital Investment over the course of the last ten years or so. We would expect that trend to really reverse itself over the course of the next five to ten years. So, you have to buy it and then borrow money to fund it . Exactly. So, thats why we would invest directly into the technology sector. And then as Credit Demand increases in order to pay for the investment in technology, we think the financials are a great way to play it. All right. Guys, thanks to everybody. Mark, rich, sam and rick. Lots of big movers. Whats getting your attention . Were up about well call it up a percent but above 15,000 is the best day for the dow in around two months. Now, among the big names moving, isi sichlt pharmaceuticals. Theyll pay 100 million up front with the possibility of other fees and royalties down the line. Isis is surging. Molex up big. Agreed to be acquired by privately held Coke Industries for 7. 2 billion in cash or 38. 50 a share. Theyll be a standalone unit of coke and current management will continue to run the business. Fusion io surging. Analysts say maker of computer storage equipment could be a possible takeover target after competing system was bought by Western Digital for 685 million. Well finish off with another tech name, this time pc maker dell. Not a lot of action. Carl icahn is throwing in the towel in his campaign to win control of the company. The move means one of the biggest obstacles to dells campaign to take control of this company has been removed. Dell says, it would be almost impossible to win, unquote. Dell shares pretty much unchanged. He said that on scotts show earlier today. He did. Cool. Cant win, move on. Exactly. At some point it becomes even clear to carl icahn. The Dow Jones Industrial higher by 149 points. Nasdaq up a whopping almost 45. Could the president s handling of the situation in syria force him to change who he wants to pick to be the next fed chief . Stay with us. It will make sense once you hear the entire story. And then nissan is the latest company jumping into the smart watch race. A car company doing smart watch. This is supposed to link you to you and your car. Well have details on that next. Then more retirees booted out of their Companys Health carrol carrolls. Is this setting up the same thing to happen to current employees . More on the unintended consequences of the new Health Care Law that may impact everyone, including you. Thats later on the bell. In a world thats changing faster than ever, we believe outshining the competition tomorrow requires challenging your Business Inside and out today. At cognizant, we help forwardlooking Companies Run better and run different to give your customers every reason to keep looking for you. So if youre ready to see opportunities and see them through, we say lets get to work. Because the future belongs to those who challenge the present. Welcome back. Lots of developments on the situation in syria and the stock market seems to like whats happening today. Lets go to john harwood in d. C. For the latest. Scott, as the white house floods the zone trying to move congress to authorize force against syria, we have a development that could potentially turn this situation around. That is, the proposal that was triggered seemingly by an offhand comment by secretary of state kerry, picked up by russia, embraced by syria. The idea that syria would turn over stockpiles of chemical weapons to foreign control. Hillary clinton said that could be significant. If the regime immediately surrendered its stockpiles to international control, as was suggested by secretary kerry and the russians, that would be an important step. But this cannot be another skut for delay or obstruction. Reporter its too early to know how seriously to take this proposal, but i did talk to former bush natural security aide richard haas said its worth testing if syria is willing to give up chemical weapons to agree to subscribe to chemical weapons convention, tough inspections very quickly. I talked to a former obama Foreign Policy official said its not on its own but if russia will also agree to accelerate the idea of a geneva peace conference leading to political settlement in syria, that could be an alternative to military force. This idea of ceding control of chemical weapons, thats an incredibly complicated thing to do. You dont just dump them in the ocean. They require industrial capacity. Took us three years to control chemical weapons and get rid of them in iraq. Reporter that was the point of this obama adviser, who said the reason you need another piece is actually executing what theyre suggesting now would take years to accomplish. Exactly. Reporter so you need to show some other signs of good faith. That doesnt mean, though, bob pisani, this couldnt be a facesaving option for the president , which seems to be what the market likes about it. I think thats why the market is moving up in the middle of the day. Lets take a look at three reasons moving the stock market right now. Syria is the number one reason here in the middle of the day. Earlier, though, we got positive asian data in japan and china. Lower bond yields since that disappointing jobs data has helped. Groups like Home Builders have been strong. Take a look at the s p 500. We moved up early in the morning on the strength of the positive asian data. You see that slow upward curve all day long. As john was talking about giving up control of chemical weapons to international monitors, the its ticked up. Moderate to heavy volume today. Lets talk about the syria issue. Theres a battle in the minds of traders over how much the syria issue means on fight for next fed president. How much is his willingness to fight over syria going to affect his domestic policy agenda, things like obama care and next fed chair . The worse syria gets, the less likely the president will be able to engage in domestic issues like the next fed chairman, and less likely hell be able to ensue a fight over Larry Summers. The better syria gets, better Janet Yellens chances are. Thanks so much. Lets bring in Steve Liesman and jim from American Enterprise institute. Steve, go to you first. What do you think of this whole discussion as to whether the president s hand here at home would be weakened when it comes to setting policy and specifically related to choosing the next fed chairman, and also what do you think the time frame is as we sit today . I think its something well hear about in the next month from the white house. I would expect. So, obviously if bob pisani says you have to give it a second thought, and ive been thinking about this, the only thing wrong with what bob is bringing out is how seriously does the president or the Administration View the opposition to Larry Summers in congress . To the extent this opposition is on his left, im not precisely sure that he sees that opposition as all that great or all that difficult to overcome. Its my understanding i dont think the republicans are going to go after larry on the fed chairmanship. I think what the republicans would like to do is step back and see democrats kind of go at each other right there. But if thats not going to happen. By the way, im not precisely sure janet may be the real number two right now. Theres some talk about some other folks who maybe don kohn is the likely number two. Its a bit perhaps like how would i describe it the Kentucky Derby back in 1973 when it was secretariat by 31 1 2 lengths and everybody else behind him. If there is a number two, i think it might be don kohn these days. Jim, what bob is talking about is horse trading. The president needs syria. He has the left against it. So he throws Larry Summers over the side. He says, i wont nominate Larry Summers if you vote for syria. Is that possible . Listen, i think that is a possible quid pro quo. The president does not want to face two bad losses. He does not want to lose on syria, historic losses, and then lose on a fed chairman. Then democrats who dont want to take two terribly tough votes. They dont want to vote for the war and a lot dont want to vote for Larry Summers. Thats a possible quid pro quo. Steve, conservatives, w republicans think. If this administration thinks Larry Summers is going to get a pass by republicans because he may be viewed as a little more hawkish than janet yellen, i think this administration will be gravely disappointed hell get from republicans whats the issue . What are you talking about . Any nominee from this president will get a tough time. The question you have to ask is will one nominee get a tougher time than the other . Thats right. And janet yellen theyll be easier on summers than yellen i disagree with you, my good friend and colleague, which i think yellen would have a much tougher time from republicans than summers. Because shes more dovish. And much more connected to current policy. Yeah, i realize that. That is the common wisdom that they would view summers and yellen that way. Listen, theyre going to view this as a way to, one, blame the Clinton Administration. You may disagree with this. Republicans believe it. Blaming the Clinton Administration for the financial crisis, housing collapse. Theyre going to because he supported deregulation . Because he supported not having as much regulation . I mean, that would be. No, no, because the Clinton Administration had pro housing strategy. So has nothing to do with the fact he didnt want to regulate derivatives, et cetera, et cetera . Thats the Elizabeth Warren argument. Republicans will come in from the other direction. I think so were overthinking this. Given whats going on with the syrian issue right now, looks like the house will potentially reject an outright support of the president. Why would he want to engage in that . Why would he want a David Cameron moment to happen to him . Bob, i think youre mixing apples and oranges a little bit. Because the house is not a place that has a lot of democratic support or where a lot of democratic opposition to surm. Summers. That would be in the senate. Thats where it would matter for obama. The question is Elizabeth Warren and others who probably do not want Larry Summers. Would Elizabeth Warren and some of the other democratic senators. Im not sure. From what im hearing, bob, at this point, they dont see it as, how should i say, unovercomable opposition. Thank you, guys. A bruised president is certainly not anything the president wants to see going into obama care fights, going into extending the debt ceiling and immigration. We could go on and on. Thanks. Bye. About 40 minutes to go before the bell rings. 144 to the plus side. 15, 066 is where the dow sits. Would you buy a car because of a smart watch that comes with it . Nissan bets you might. Later, the speculation on what apples big announcement might be is growing like crazy and the stock is back over 500 bucks. [ female announcer ] its time for the annual shareholders meeting. Therell be the usual presentations on research. And development. Some new members of the team will be introduced. The chairman emeritus will distribute his usual wisdom. And you . Well,