Expiration. Bill, the question which well get to in one second is why. So here is where we stand in markets right now. The dow is up 161 points. The s p 500 adding about 18 to 1854. If we hold, there will be a new record closing high. The nasdaq up 40 points above the 4,300 level at this hour, bill. Lets ask that why question you posed. Get to our closing bell exchange. Our round table includes Patti Edwards from u. S. Bank, Quincy Crosby from prudential financial, anthony chen from chase and our own Rick Santelli in the windy city as well. So, patti, why is the market up as much as the dow was up 190 points at the its peak today. Why is the s p near alltime high territory . Were getting through earning season and 75 of the reports have been better than expected. You add to that it looks like weve got a little bit of resolution in the ukraine and the fact that people had been taking money off the table and its time to get back in. I think people are just going where the best deals are and right now that seems to be the u. S. Market. The u. S. Markets. And thats where if you look at the action in europe overnight and asia to some extent, is it the g20 statement, anthony chen, in your opinion because id be amazed if Something Like that coming out of that group of policymakers would be enough to hand us almost 200 points on the dow . I think the g20 statement went a long way talking about boosting Economic Growth by 2 over the next five years and, of course, putting to rest any discussion of austerity whatsoever. All those things are suggesting that we are going to try to stimulate not only the u. S. Economy but the Global Economy which will lift up the emergency markets that really have been the real pain for Financial Markets for quite some time. Joining us, he made it through traffic, peter from Cantor Fitzgerald is also with us. Earnings are one thing, the fed the another with the tapering, and there are those who feel were in sort of a sweet spot right now with the slower growth, the tapering, the good earnings. Do you agree . Is that why this stock market is doing what its doing right now . Yeah. You know, the earning beats are fine, 75 beating. Thats actually not that out of line with the average beat rate. So i dont think its stellar earnings. I really do think its something of a goldilocks scenario in which we have just slow enough growth to keep the fed engaged and were not so late in the fed easing cycle that people are worried we dont have the fed backstop. I want to go back to the point anthony was making about the g20. Weve been going back and forth, is it true that Something Like this statement can really cause a rally . Youre saying austerity is off the table, thats supportive, but why did yueurope struggle s much and here in the u. S. We seem to have this levtation. Especially when you consider its easier said than done. Its easier said than done but even in europe youre seeing less and less discussion of austerity. You have seen spain, the Credit Rating picking up. Youre starting to hear Forbes Magazine saying ireland is one of the best countries to do business in the world when it was a poster child for problems a few years ago. Youre hearing less and less of that drag overall. Youre getting some good news in italy that maybe things are going to move forward and the ukraine situation that was mentioned a few minutes ago. That uncertainty is out there. And then lets not lose sight of the fact that the economy in the u. S. Is slow growing, it provides more room for Central Banks to do their job. Germany also today we came into this market with good data out of germany. The survey is a very influential survey. It provided a nice confirmation that at least in the largest economic block in the eurozone, germany, things are getting better. Thats a good point, quincy. So also over the weekend picking up on more people looking at emerging markets and saying, well, you know what . Extremely depressed valuations, tons of outflows, maybe now is the time to actually try and start to look for opportunity in this space. Is that a threat at all, that people are going to start to look elsewhere for opportunity as these indexes in the u. S. Plumb new highs . Perhaps so. Theres already been bottom picking and moving into certain emerging markets, but i think theres one other element here. Markets love m a activity. One of the things that we have seen is that the acquirers share price has moved up in a number of cases. Thats very unusual and its a very positive catalyst for the markets. It presents a halo effect on the sectors and subsectors in the markets, and the activity that weve seen is in number of sectors. So you continue this, you can see the market move higher. Wed like to see cash deals. Nonetheless, the market has been waiting for m a activity and its here now. Let me ask mr. Market the why question today. Rick santelli, in your view why are we rallying like we are today . Whats going on . Well, the weather is an excuse potentially to keep rates in check, and they are in check as you look at these charts. Weve basically gone nowhere since february 12th. The last time we touched 2. 76 level and since then weve added 300plus points to the dow. And i think when you add into that the notion that some of the data has been weak even over and above any weather implications. So, yes, you know what this is about . You cant fight it sometimes. And i understand that. As long as the three or four investors behind you are willing to pay more, as long as its fresh in peoples minds that 55 people went for 19 billion, theres obviously no shortage of liquidity looking for a home. I think that its going to continue. Its not surprising at all. How long the game goes on, thats another question, but obviously investors are interested in that today and i can respect that. And, rick one last point, bill, and that is that the head of the central bank in india a couple weeks ago was raving somehow Central Banks werent doing anything. Today his tune changed saying Central Banks around the world seems to be listening to whats going on in emerging markets. Thats the message equity markets are hearing around the world. Everybody seems pretty positive about the markets about you theres always going to be another side of the trade and it came this morning from our friend james grant, the longtime editor of grants Interest Rate observer on squawk box. Hes a hard money, sound money kind of guy, and hes worried about the impact that fed policy has had on all the earnings that we love so much right now. Here is what jim said this morning. My fear is that because Interest Rates are suppressed, therefore earnings are inflated, so when rates go up again, suddenly the hall of mirrors is shattered and we look at each other and see what actually is rather than what the fed wants us to believe. Patty edwards, have we been tooli fooling ourselves . Revenues has only gone up by about 7 . It is final for revenues to start picking up the pace and thats part of the reason youre seeing the m and a. Companies are looking for Revenue Growth. They will have to get it somehow and i think m a which be way a lot of them play it. Its a great point. Its one thats getting a lot of chatter, which is its fine that you generally have seen the price of the index track earnings, but there really hasnt been that Revenue Growth. So how do you read this . Do we have to kind of have a transition here where that top line does pick up . Well, i would think eventually we need to, and i would agree with mr. Grant in that you had two effects on low cost of capital on the markets. The first is obviously through lower interest expense and better net earnings and the second is through price earnings ratios. When the cost of capital is low, pe ratios tend to rise. And so you have had a double whammy, and we have really not seen robust Revenue Growth, and, again, i keep coming back to the fact that we have an accommodative fed and a growing Balance Sheet this year. The Balance Sheet will grow another 7. 5 and at the end of the day when you boil things down, thats operative. Rick, youre not as much you are a fan of the fed as much as jim grant is, but i wonder as skeptical as he sounds about the impact of fed policy on earnings, isnt this precisely why the fed was adding all that liquidity to the economy right now, to help the corporations through these tough times. I dont know. I hearken back, i kind of remember the dynamic was to help main street actually, but, no, i think jim grants words should be carved in stone. Very little doubt in my mind hes right, but that isnt the issue of him being right. The issue is how long will the game be afoot. How long will i be able to look behind me and see investors champing at the bit to pay higher than my high bid . Thats the question. Normally these things take a quhol lot longer to work out than many investors believe. You raise an interesting point. I wonder what quincy thinks about this. How much of this policy has been directed at helping Corporate America which in fairness is indicative of main street. These are our big employers not much trickling down. You dont need an umbrella. Theyre the ones buying shares and benefiting from all of this. Absolutely. The fed started this to create liquidity in markets. Then they moved to the jobs mandate. It was supposed to be trickle down. The virtuous circle that ben bernanke outlined did not actually take place despite Auto Industry and housing, but ill tell you this, we saw a taste of what happens when the fed changes, not may 22nd, but in june. Look what happened to markets globally. The market saw a taper of tightening. Everything sold off. When tightening happens, something always breaks. It took fed speakers, it took the bank of england, the European Central bank to calm things down those two weeks in june. We would have run into absolutely a lack of liquidity in markets. So we got a taste, a dress rehearsal of what can happen. By the way, janet yellen, she goes up on capitol hill this week. I dont want to be long going in because she is careful in those q a. They can twist it, they can f torture going long yellen has been they cant handle normalization. Thats whats going on. This is fun. I always love sparking debate about fed policy. Oh. Thanks, everybody. See you later. Appreciate it. Great to see you guys. Is this me . Thats you. All you, sir. We have 50 minutes left in the trading session here, and weve had a rally. The dow was up 190plus points at the peak today. Now we have a gain of 154 right now and were watching to see if the s p is close at an alltime high. Much more on this rally is coming up. Plus, tech deals helping to fuel this strong market. Theyve been happening at a fast and furious pace lately. Coming up, a look at whats driving that and which Companies Might be next. And Dreamworks Animation is getting away from its movies core. First they announced a publishing unit. Now theyre opening a shrek entertainment attraction in london near the london eye. When we come back ceo Jeffrey Katzenberg will join us and talk about this ambitious move in a first on cnbc interview. Tdd 18886486021 there are Trading Opportunities tdd 18886486021 just waiting to be found. Tdd 18886486021 at schwab, were here to help tdd 18886486021 bring what inspires you tdd 18886486021 out there. 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Youll find sleep trains very best mattresses at the guaranteed lowest price. Plus, pay no interest for 3 years on beautyrest black, stearns foster, serta icomfort, even tempurpedic. And rest even better with sleep trains riskfree 100day money back guarantee. Get your best rest ever from sleep train. Superior service, best selection, lowest price, guaranteed. Sleep train your ticket to a better nights sleep welcome back. Well, from tablets to a publishing unit to most recently an interactive shrek themed attraction in london, Dreamworks Animation is breaking away from just making movies that you might know like the croods. Joining us is Jeffrey Katzenberg, ceo of Dreamworks Animation who is out in california with our julia boorstin. Julia . Thanks so much. And jeffrey, thanks so much for joining us today. Great to be with you. Youre announcing this big deal with merlin entertainment. Why are you making this deal . It is just another step in what is, you know, a path to building a branded Family Entertainment company, and, you know, diversifying, using the great characters and stories and ip that weve built up, some of which we acquired with Classic Media last year. And suddenly there are many, many opportunities for us to really diversify the company. And the stock is up on this news. How long will it take before we start seeing profits generated or real revenue generated as a result of this deal . The first will be next year. Theyre on track to open up the first attraction right by the eye in london which is maybe the greatest piece of real estate, and that will be Spring Summer of next year, and then, you know, weve committed to roll out a half a dozen of these with merlin, and, frankly, in success, there will be many more. Its a great product and theyve done a wonderful job building these around the world. Now, you say its a great product. I think its important to make it clear this is merlin is le legoland. Youre talking about a whole different type of entertainment. They do legoland, madame tussaud. They have a number of midway products. Theyre a couple hours experience in it. What were doing is really almost like live theater. You the audience will participate in a story with live actors and our characters from shrek and you have to help, you know, solve the story and save the day. And its very clever, and i think a really fun, unique way to engage with our characters. Kelly and bill, want to jump in . Thanks, julia. Jeffrey, its great to see you. Just curious over time what you think the ratio of nonmovie income to actual movie income will be for dreamworks as you roll these kinds of things out . Yeah. Its a little hard to right now today, you know, 75 , 80 of our income comes from our core movie business. You know, my ideal is three, four, five years from now that would come down and be 30 or 40 of our business. Its still the heart and soul of the company, and without those great new movies and characters, the rest of it cant happen, but i hope we are able to grow the Company Significantly now out into television, out into parks, out into publishing, many different things. The Publishing Business you Just Announced earlier this month, whats your plan there . How big could that business really be . One of the real places of Great Success in the publishing world today right now is kids, and both e publishing as well as hard covers. We own golden books. You know, we all are familiar with that as a wonderful, wonderful property. And with all of the other Movie Properties and now Tv Properties coming from netflix, we actually now have the scale to have an inhouse publishing operation. Great. Bill . Jeffrey, on the whole question of distribution, its clear youre testing different modes of distribution out there with publishing and with the licensing to merlin and, you know, this tablet that youve developed as well. But what about just going whole hog into electronic distribution of some kind . Our parent comcast has made it clear that thats content and distribution are the ways to go to survey. Why dont you guys just merge with netflix. You and Reed Hastings could run a whole empire. Im sort of kidding in that regard but you know what im talking about. Are you going to at some point make a full commitment to distribution to complement your content . Well, a couple different ways. First of all, netflix has become really dreamworks probably most important partner and customer, and we made a huge deal with them just literally six months ago. Game changing for us. In making new television content, very specifically for that platform. So, frankly, their growth, this new deal that theyve done with comcast, thats all good for us. Were very excited about it. But i think the next place for us where youre going to continue to see real opportunity is in digital distribution. As you know, we bought awesomeness tv last spring, which is a teen and tween girl youtube channel, which has had unbelievable growth and continues to, and were going to launch a couple more verticals in that same space in the coming months. So that now gets us into distribution, direct distribution. We look forward to seeing where that all goes. But i have to ask you before we run out of time about the cnbc 25. Y