Gaining back what we lost last week. For everyone who points to the geopolitical concern moving to the back burner, there will be someone who says you never want to take a guy like Vladimir Putin at his word. Also, the market keeping an eye on the fed. At this hour tomorrow janet yellen will be in the midst of her first News Conference. Right now were in day one of na twoday meeting. Well lay out what investors should expect. Then remember earnings . That matters i think i heard of it. As well today. We have two big ones coming tonight. Two tech titans will be reporting at the top of the hour, oracle and adobe. Of course, we will have the numbers, the market response, and the complete analysis coming up right here. And so on this tuesday, the Dow Jones Industrial average up 108 points to 16,355. Take a look at the nasdaq which is rallying nicely as well, up about 70 points. Im sorry, its up about 52 points. The s p 500 finally adding 14 this hour. 1873 is the level there, and believe it or not, bill, i believe 1878 is the closing high. We are five points away. That close. Joining us on the the closing bell exchange, kimberly foss, Peter Anderson is back with us, kyle harrington, mark martiac from premiere wealth first allied and our own Rick Santelli joins us as well. Mark, are you concerned about ukraine, the situation with russia . Is it enough to make you want to rethink your Growth Portfolio right now . It is on both counts, bill and kelly. Thanks for having me on your show, by the way. It is in the sense we havent seen the full effect of what sanctions are going to unfold from washington, and, in fact, with respect to ukraine and europe, one of their trading partners, europe imports 30 of its natural gas from the ukraine from russia. Through the ukraine. We could have an issue if russia decides to cut off the supply to the ukraine of natural gas. But i do think that investors and the markets have the drama now priced into them, and i dont fear for investors as much at this point. Kyle, i wonder if this isnt one where consumers wind up taking it on the chin. Some of the soft, some of the grains in particular, is it too much to attribute that to whats happening in terms of this unrest and to say that perhaps it wont be for months from now until the effect of that is really felt . Well, you know, i still think that the effects are here to stay and are going to be felt in the coming months. I think that the volume tilts and the increased international disarray will drive volatility up and down and in the domestic marketplace. If youre not allocated to some marketplaces outside of the United States, for example in indonesia, that over the last six or seven years has grown at 5. 8 gdp, youre making a mistake. Visit your portfolio with an international allocation. Would you buy russia . No. I think im going to sit back on russia for a while. I want to see how this unfolds. Im very cautious in that marketplace, and Vladimir Putin, he makes me nervous. Peter, were only five points away from an alltime high on the s p, but youve done the math. You went way back. You still think this is a cheap market here. Well, i have done the math, thats right, bill, and if you look back, what i like to do is be sell telescopic. Lets look from a macroperspective and then we can deal down to the specifics a the a stock level. When do you that, everything seems to be pointing in the right direction. The lights are all green. On the macro perspective, if you look back 65 years on the s p 500 and you look to see where the valuations are, right now at around 17 or 18 times, we are not, and i think this is going to surprise a lot of viewers, we are not really overvalued when is that if you include episodes where we saw the market trading significantly overvalued . In other words, does the average look okay because weve had times like the dotcom bubble . Kelly, it includes everything. Thats why i wanted to go back that far. Some people will only go back ten years saying its a new economy, et cetera, but 65 years i think wed all agree is a pretty long time to look at all these stats. And so it includes everything from 65 years. If you do this it turns out to be within less than one standard deviation of that bell curve distribution that you normally see, and i computed that on a pe basis you have to be about 20 higher before i would start whispering that word bubble. So i think we have a way to go. Now, thats the macro perspective. If you want, we can talk about the individual stock perspective, too, and it all points to very do you want to throw out a name or two you think is attractive here then . Sure. Veri phone, pay. Its up 34 yeartodate and thats not including the increase today of verifone. Its a company that has beat and set its earnings to be greater. And you own verifone . Yes. And youre tired of hearing what . Im tired of hearing all these companies that have missed and guided down. Kelly, for every five of those i would say theres at least one type of stock like a verifone where things look optimistic. We have a positive bias as youre pointing out. Do you feel like were destined to go higher as well or would you take something off the table right now as we approach alltime highs . Well, were balancing as we speak today, but i really do think we are poised to go higher. We have crimea going as planned. We have yellen speaking today. The last two times shes spoken, the market has gone higher, and dont forget, guys, we have 2. 678 trillion in money sitting at. 001 on the sidelines. No real increase in Interest Rates except for maybe 2015. So despite all the fundamentals, we sill have some room in this market to go. It is going to be spotted with volatility, but i still think weve got room to grow in this market. Rick santelli, its not uncommon to see the market rally into the feds meeting tomorrow. But we could be talking about significant tweaks to the language, their tashrgets, anotr taper on the way. You know, tweaks to the language, does that really sound as earth shattering as we want to make it out to be . I dont know. I think it could be. To me its all the rorschach. In the end we all know whats going on here. We have janet yellen continuing quote, unquote, the taper. Why they need to continue to make any purchase whatsoever after listening to our guest makes no sense to me at all. I think the salient feature tomorrow is why they dont want to Pay Attention to the Unemployment Rate tomorrow after all these years of telling us what wonderful news it was that it would move lower. It affected the political landscape, but after tomorrow its probably not going to be as important. Theyll switch gears to things like inflation, which the government measures, but yet anybody who has a hunger for three needles a day doesnt really jive with that anyway. They measure both of them. If youre saying we cant trust cpi, then we shouldnt trust any of the government data. Wow, so we do agree on something, dont we . What do you think the market would do tomorrow if janet yellen said, okay, im done with tapering. No more asset purchases . Well, gee, let me see, there might be some market volatility. Oh, my god. Really . Its not preannounced and everybody isnt in on the fix. I think it would be a wonderful thing for fre markets. A great stride forward. Kyle harrington, i think you would agree. I think i agree 100 . The less janet yellen a involved in the free markets the process will expand and i think it will be much healthier long term for the United States economy. I would agree 100 . One of the things i think is pretty important to look at here is nobody has mentioned this, but this is Janet YellensFirst Official press conference. I know we have seen her in the past, and im really curious to see what her Communication Style is going to be. I dont know if everybody on this panel has actually watched her on camera. Rick has watched her very carefully. Okay. Well, it is rather interesting the way she has answered some of these questions, so im going to be looking to see regardless of whether or not shes going to be tapering, i know thats very important, but also i think the way in which she communicates this stuff can really send the market upside down, and she has to be extremely careful to continue what do you mean . Are you worried from the way in which she handled the testimony . Well, i just tuned in on some excerp excerpts, and i wanted to ask a couple more questions. Of course, i wasnt there, but i think there was some things that could have been answered a little more clearly and i dont know if thats because of her academic background and she tends to think more words than we normally do. If you had one question for her tomorrow then, what would it be . I think it would be are you going to continue to give Forward Guidance the way your predecessor has and are you aware what kind of volatility that might cause in our markets. Those are good questions. I would ask chairwoman yellen when she expects to lower the shortterm rate. If, in fact, 2015 is still in the future to start lowering the shortterm fed funds rate. You mean to raise. To raise it rather, to raise it, yes. To raise it, yes. That would be an interesting 2015. To raise it, yes. Weve got to go. Just remind everybody, Janet YellensNews Conference will be live here on cnbc tomorrow so you can see that starting i think around 2 30 eastern time. Correct. Thanks, guys. Have a good one. Heading toward the close. Pretty good gains today. The dow is up 102 points. Here we go again on top of yesterdays rally, so were gaining back what we lost last week so far. 50 minutes left in the trading day. Todays rally sparked in part by russian president Vladimir Putin saying he will not seize other parts of ukraine. Coming up, well discuss why the market is putting so much faith in putins promise. The market seems to believe putin. Do you . Tweet us. Well reveal your best responses coming up. The handle would be cnbcclosingbell. Disney is the second best performing dow stock in 2014 helped by the success of frozen. Can disney continue to deliver magic for shareholders . Announcer where can an investor be a name and not a number . Scottrade. Ron im never alone with scottrade. I can always call or stop by my local office. Theyre nearby and ready to help. So when i have questions, i can talk to someone who knows exactly how i trade. Because i dont trade like everybody. I trade like me. Thats why im with scottrade. Announcer ranked highest in Investor Satisfaction with selfdirected services by j. D. Power and associates. No two people have the same financial goals. Pnc investments works with you to understand yours and helps plan for your retirement. Talk to a pnc investments Financial Advisor today. Welcome back. So stocks are building on yesterdays big gains and that includes disney. In fact, the blue chip has been the second best dow performer this year. You would think investors are happy. Morgan brennan has been monitoring the annual shareholders meeting. Are they happy . I think so. The meeting just ended. 10 of the 11 Board Members were reelected including sheryl sandberg. Blackberry Ceo John Chen and quar and twitter could founder jack dorsey. Probably the most interesting piece of news relating to todays meeting actually came before the meeting. There had been a proposal for the largest shareholders to be able to nominate candidates for the board. That was actually taken off the table today after disney tweaked its language regarding the chairman position in its proxy statement. That language basically reaffirming that the chairman be an independent director unless its in shareholders interests to do otherwise. A new cars sequel is coming and a new incredibles film and the next star wars movie will take place 30 years after return of the jedi. Kelly, back to you. Morgan, thanks very much. Lets stick with disney for a moment. Its been on quite a run, up 44 other the past 12 months. Lets talk about it. Timot thinks theres more room run and abigail says the stock has gotten well ahead of itself. Lets brawl it out. Tim, why do you think theres more time to the upside . Im the fundamental story for disney is very, very good. Three factors i particularly like are think really, really strong run of films likely to come out not only this year but you mentioned star wars, we have some avengers film next year. They have higher volumes and higher pricing in the parks. And we have the shanghai park opening coming in december of next year. And then finally im really interested by some of the streaming tv deals disney has done. You may recall a year or so ago they did a deal with netflix to do first run rights on their films, and just recently we had the deal with dish last week probably similar to the comcast deal they did a couple years ago where theyre selling some tv everywhere streaming rights and thats incremental revenue for the disney tv properties. Abigail, you look at the stock and you dont like the chart here or when i look at the chart it really does look like its setting up for a near term pull back. When i say the stock is overdone, ahead of itself, its up 100 over the last two years. The dow is up only 25 in that time. Some investors say that outperformance is justified because of the strong story, because of the prospects. When i look at revenue growth, were looking at just high single digit revenue growth. It seems disproportionate for me. It seems hard to believe this stock is where it should be. It appears overbought. Investor sentiment is wildly bullish at this point. Back to the charts, they really are pointing to a nearterm pull back. We could actually be looking at just a move back on the markets moving down over the next couple weeks. Tim, what is the stock trading at in terms of valuation here compared to the historical average . Right. On a pe its about 20 times. That certainly puts it at a very upper end of its direct peer group. A number of its direct peers are trading in more kind of the 17 to 19 level. So its at the upper end of that. Actually seeing any stock have this kind of a Strong Performance i wouldnt be surprised at all if theres some sort of a period of taking profits here. But i think the revenue environment is very strong and also the earnings environment. Talking about the investments in the parks, you know, that should translate into some nice operating leverage here. They also have a product called my magic plus which should improve efficiencies at the marmar parks. Were modeling about midteens eps growth over the next couple years and i dont think were fuelly allocating the right estimates in for the park expansion in shanghai or star wars or avengers. You sound like you wouldnt be surprise fd there was a pull back of some kind at disney. Im not saying it is cheap. Its trading at 20 times. Its the upper end of the peer group and its up 40 or so in the last year. You know, any stock that has that kind of Strong Performance and i dont necessarily see a fiscal q2 catalyst for disney necessarily. I wouldnt be surprised if theres a little period of taking profits, but my view is not shortterm. My view is one year and beyond and i think theres a lot to like about disney. If it pulled back to what level would you buy it . There does appear to be some support around 70 but i wouldnt be surprised to see it go back to 40. That is extreme even in my view but it looks like there could be a negative surprise. Lets not forget about this Malaysian Airline mystery. God forbid if its related to terrorism. That would be a negative for this company, no doubt. You know, i dont know what the chart is pointing to exactly but its pointing to something negative. You mean because of the hit to travel. To travel and consumer spending, confidence. But theres no direct no direct link, but this terms of the theme parks tourism overall. Tourism and people spending on movies and that sort of thing. It could potentially hurt disney. Thank you both. Were heading into the close with 40 minutes to go. The dow is still up 102 points here, bill. Well keep a close eye on the s p as well. Hanging onto the gains here. Russian president putin isnt the most trustworthy person in the world, so why did this market rally like this on his pledge this morning to not seize any more parts of ukraine . Were going to discuss that coming up here. Also, biotech stocks, theyve been red hot for the most part lately, but closely follow Value Investor joel greenbott thinks you should be feeling sick about buying this group. Find out what stocks hes betting against. Thats coming up later on the closing bell. In a world thats changing faster than ever, we believe outshining the competition tomorrow quires 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. Was it truly something he said . Stock future this is morning before the open rallied right after russian president Vladimir Putins speech justifying his nation annexing ukraines crimean region and this rally has continue. Cnbc chief International CorrespondentMichelle Carusocabrera is joining us today to explain why the reaction has been so strong. Vladimir putins annexation of crimea was a pomp filled announcement in front of the russian parliament. Flag bearing honor guard and entrance heralded with trumpets. An hourlong speech and signing ceremony with putin and three crimean politicians all backed by the kremlin. With that crimea was under the control of russia. Take a look at the s p 500 futures from that hour. Just before 8 00 a. M. East coast time, they rose sharply. It was at that moment when putin during his speech said, dont believe those who say we want more than crimea. We dont need it. That was the answer the markets were looking for. Take a look at the russian sto