Closing high. Tyler, just thinking about that, that was april 30th, our 25th anniversary and see if we can do it again today. I think the s p is trading at record high closing territory. Meantime, a heavy duty lineup on closing bell. Exclusive interviews with cant fitzgerald head and two friends who started with 200 have a brand worth millions. And will housing turn out to be a bad investment over the next decade . Kevin oleary says yes. Hes here to make the case that youre better off renting right now than owning a home and wait until you hear why. Heres where we stand in the markets. Tyler mentioned the dow is up a couple of points to 16,729. Still 15 shy of the record closing high. Take a look at the nasdaq which after underperforming for the last couple of sessions is trying to add 15 point today and the s p 500, keep a close eye on this one. The record high is 1924 just about, and were trading at 1926 right here with about an hour to go, tyler. Lets talk markets. Joining our Closing Bell Exchange is kate warren from edward jones and ken from Money Matters and Keith Fitzgerald and Jack Bouroudjian from intention Financial Partners and our own rick santelli. Welcome one and all. Ken, you make the case, my notes indicate, that we are in a kind of rolling correction. Make your case for that because were going to an alltime high potentially today. Well, what normally happens when you have a correction is you have a drop of 10 to 20 . It recovers quickly, usually within about four months and then we forget all about it, and we move on. Well, its happened here and over the last few months the market basically traded sizeways, and i was its picking up now, but for four months we basically treaded water so the net effect is the same as if we had a correction. Didnt have all the excitement or variety of a 10 drop. Do you think policymakers in europe will do what everyone for weeks has been speculating that they will do and add more stimulus to support the economy . Well, i think the whole phrase of adding more stimulus certainly makes it sound like its something easy and that it works. I dont think they are going to come up with anything tomorrow in the big picture thats going to work, especial ly if some of the programs of late are using. Should be no shortage of volatility. The debate is whether its more on the euro or bund and subsequently in the southern securities, like the spanish, italian, portuguese greek paper. I think it will all be moving rather large. I just dont think they can possibly deliver. They have had years to enact reforms. Mario draghi bought them a couple of years. I dont know if it was prudently used or not, but i will tell you this. The setup going in tomorrow is that the bund yield and tenyear note yields are both basically at threeweek highs. They have both had basically some of the bigger corrections of 2014 because most of 2014 has been yields to the downside, and, of course, lets not dismiss todays trade deficit. That was a big number. It was the biggest deficit since march of 2012, and it underscores not only revisions to firstquarter gdp but the lofty highly debated between us calls for Second Quarter coming down markedly for four handles to three handles. They are. Keith, let me turn to you. Rick raises the question of whether all the fiscal the monetary stimulus, i should say, has really had the effect of stimulating the economy. I think youre in the camp that says that the u. S. Economy isnt all that hot. We did get the beige book an hour or so ago, points to modest or moderate growth. Do you think that the monetary stimulus worked, and do you think that the stock market has gotten ahead of where the real economy would justify those prices . Well, thats an interesting question, you know. It depends on how you define work. I think the fed conditions as ive said repeatedly, to make things up as it goes along. I think stimulus has clearly worked. Prices simply i think are ahead of where that value is today. What im concerned about is a potential for a june swoon. Gotten ahead of things and havent had a meaningful correction but im content to play in this market because i think thats what the fed and ecb is telegraphing. We want to inflat things. Im going to be along for the ride. Kate, you think this rally can keep going, dont you . Absolutely. Basically the economy is showing signs of picking up a little steam. Wont pick up a lot of steam but in particular if the economy does pick up steam thats good news for stocks and valuations are still reasonable, so i think, yes, the fed is trying to not only inflate the economy but trying to be sure that it stays a Good Environment for investors. What do you say because im sure you hear this from investors all the time who look at the markets at alltime highs, cant believe whether they are about to walk in at the moment of a massive selloff. How can you say thats not going to happen when were so overdue for a correction year . We never know when its going to happen and its usually a surprise that triggers it so you always need to be prepared for one and that would be a return to normal volatility which we havent seen for almost three years, but if youre prepared for that and staying invested, realizing in an environment of improving earnings and economic growth, any dips or buying opportunities, not things to be afraid of. Jack bouroudjian, are the stoc stars aligned for stocks . Absolutely, tyler. Since the low in april, let put it in perspective. Weve rallied 100 s p points, all right. This has been the most disrespected unfanfared rally i have ever seen, and ive got to tell you something, were at alltime highs, whether people dont know it or not. Whats really going on here, what ive been saying all along. The bond market has been sending the wrong signal and anybody that bought it last week has been catching you have, you know what . Im going to go out on record and im going to bet you that sack of white castles right now and right here that weve probably seen the low yield in the tenyear as of last week, all right. That was it because quite frankly can i not see anybody buying bonds. The competition for equities right now is fixed income. Hang on one second. Does anybody here disagree that weve put in the lows for bonds this period as jack just said . Anybody . Yes, you disagree with that. Go ahead. I think that risk is still out there. Me, too. I think well end the quarter at 2. 25 or 2. 30. You mean the end of the next month. You think were going back down to end of next quarter, by september. Okay, okay. Rick . Jack, jack, hows business . Hows business . Business is great if youre long the market, its wonderful. Were covering this conference in new york, and ive wondered for years why the big titans of wall street didnt complain much louder that the markets were being pegged by agencies like the Federal Reserve. Now i know why, because the wool is really good, fleeced all the wool and now they dont like the taste of the lamb. Find it so interesting that they are not all wondering why the markets arent moving, why the hell do you need traders when you package Interest Rates . Im going to serve guys some cheese with that wine. I need to inject a word of caution in here because even though i think that the dow will be at 18,000 by the end of this year, after the elections i think were going to see a real on the order of 5 or 6 , but, again, you have to be careful for the upcoming bear market. I agree with the guest that said youve got to ride the market but you always have to have an eye on the exit. We work with people that are retired or are retiring soon and our job is to the to make them rich quick. Its to keep them from becoming poor and when the next bear market comes with the debt that were running, the low Interest Rates for so long, the imbalance that that is is creating, i think were setting up for a bad bear market. Whats going to trigger it . I dont know if i would go that far. What happens if you dont get that 10 correction, we did not get it last year and whoever that first guest was was spot on. Havent got it this year. Got that rolling correction and it went sideways. Countries like argentina always have very strong stock markets. What were looking at right now is what i call a meltup scenario. Get some of these Asset Allocation coming out of fixed income because they realize that might be it for the year, watch out. How do you meltup . Theres no customer value. What could trigger the next bear market . Guys, guys, just one at a second. Why do you say that sideways is reassuring here . Because i think many investors are still sitting with cash on the sidelines and the sideways market has reassured many individual investors putting money in stocks and bonds so the rotation is out of cash and bonds. Youve seen that firsthand . Need time to digest the new highs. People are moving out of cash and saying we need to be invested and i think the sideways has actually comforted people and the low volatility so what were seeing is more Investor Confidence and thats good news. Ken, do you think there will be a meltup after the election and if so why . I think the dark clouds on the horizon is when the fed starts raising Interest Rates and all the emerging markets out there relying on free money start to unwind and their economies start to go badly. Thats going to roll all the way around the planet and hit us back right where we dont want it to. So thats what you think the trigger of a bear market would be . Wow. Very potentially. But you know bear markets are trigger by something we dont know about and didnt see until after the fact and we go, duh, no kidding, sub prime. October of 2007, ben bernanke was telling us sub prime is not a problem. Dont worry about it and then afterwards we find out, oh, my gosh, its a huge issue so bear markets thats why you stay invested. You see a real after, that ken . After what . After that sort of apocalyptic event, my word, not yours. Of course. Eventually the bear market ends and then the market rebounds and creates an amazing buying opportunity. Come on. Armageddon is not an investment policy. You know what . Arm gotten is not an investment policy. Its not an investment strategy. Look, thats not the way to play this market. This market right now is all about earnings. Companies are making money. As long as they continue to make money, this market will go up. Dur see the gdp numbers. I disagree with that because, you know, banks were making tons of money in 2007 before the collapse came. I wouldnt rely on earnings as a guide that everything is fine. Theres an underlying earnings are going to increase this year because we actually saw them go down in the First Quarter. They were down in the First Quarter, and they will increase and currently the pickup in growth in the u. S. But also the synchronized global rebound where were seeing economies in the rest of the world pick up. Thats actually good news. Bingo, there you go. As well as earnings in the rest of the world. 60 of the s p are coming overseas. Well leave it there for now. Thanks, everybody. Good to see you all. Wow. Tyler, weve got about 45 minutes to go here to the close. The dow, all three indexes positive and the s p 500 edging even further to that 1927 mark which i believe if we close here would be a new record for us. And weve got a big lineup in the remaining part of the closing bell today. You wont see it anywhere else on tv today. Cantor fitzgerald and bgc partners ceo Howard Lutnick up next. Wait until you hear what he says about the economy and the economy and if the fed can unwind all the stimulus without causing a major disruption for investors like you. Now, the economy is a worry for Morgan Stanleys adam parker. Find out what hes seeing that makes him less bullish now than just a few months ago. Plus is Luxury Retail hitting fast times or potentially hitting an ice patch . And wheres growth these days . Guccis ceo stops by the New York Stock Exchange for a rare interview. Dont miss our exclusive discussion with him coming up. [ girl ] my mom, she makes underwater fans that are powered by the moon. She can print amazing things, right from her computer. [ whirring ] [ train whistle blows ] she makes trains that are friends with trees. My mom works at ge. My mom works at ge. Fame, makes a man my mtake things over fame, lets him loose, hard to swallow fame, puts you there where things are hollow the evolution of luxury continues. The next generation 2015 escalade. Fame all right. Let take a look at markets right now. A little bit shy of an alltime high at 16,736 on the dow industrials. Nasdaq up about a third of a percent at 4249 and s p at 1927. That was a good year. 1927, up three point, a little more than 1 10 of 1 . Kell . Ill take your word for it. Dominic chu will run through it. Reporter lets start off with a look at smith and nephew up more than 13 in todays trade. Bloomberg news is reporting the medical devicemaker is getting a possible bid or possible interest from medtronic looking at a possible takeover for this company. Medtronic is also spiking up about 4 on those reports. Shares of chinese mobile internet and Securities Software company nq mobile are surging. You can see session highs up 38 , thats after the company said this a review of the company by independent Committee Found no evidence of fraud. Others have been contending the company is a massive fraud. Wall green shares hitting a record high after may sales topped analyst estimates. May sales were up 6 and wall greens at a record high and luxurywise, coach, one of the worst performers in the s p 500, the luxury Goods Company is downgraded or cutting it due to lackluster sales. Some interesting moves in todays trade. Kell, back over to you,fies. Medtronic ceo omar ishrak will be on closing bell tomorrow so dont miss it tomorrow exclusively on closing bell. Cnbc today is live from the Sandra OneillBroker Exchange where ceos from all the major exchanges and discount brokers are gathering to talk about whats really going on in the markets today, and joining us now in an exclusive interview is Howard Lutnick, chairman and ceo as well as chairman and ceo of Cantor Fitzgerald with our very own bob pisani. The discussion here with all of the Brokerage Firms and the ceos that runt exchanges is whats going on with the trading right now . Why have we suddenly seen a drop in trading volumes, not just stocks, but bonds and 4x and whats with the low Interest Rates . Whats that trying to tell the market . Is there a consensus amongst ceos what this is telling us . Low Interest Rates are just boring for financial markets. Theres no two ways about it. I mean, i have a big im at a bank and i have a big fixed income and selling cocacola bonds, grab your pillow, who cares, you wont really make money and low Interest Rate, and the Interest Rates are being crushed down by the government and its quantitative easing, keeps buying bondsp and putting them under their pillow so low Interest Rates for a long period of time make volumes slow. Good for prices of equity and bad for volume of equity. Part of the problem is the Federal Reserve own policy keeping the rates low, obviously, but isnt it also the uncertainty about the economy. People have been lasting the fact that the firms arent making that much money. A good First Quarter but none of the exchanges or Brokerage Firms are doing very well in the Second Quarter because the volumes have dropped. I think its simpler. No uncertainty about the market. Low Interest Rates means the economy is weak. Its the same thing if this economy was booming, wed have Interest Rates. You cant have Interest Rates at nil unless the economy is weak so the fed is yelling it from the highest platform weak economy, not much going on keeping rates low. Great news for the real estate business. You have a real estate and commercial arm. You just made some acquisitions, thats great news low rates for the real estate business. Now is how is commercial real estate doing . We had this view Interest Rates would be really low so its going to make it tough for the Financial Service business so we bought newmark and grub and ellis and now buying cornish and carey, the best guy in Silicon Valley and our business has been booming. Our brokers, their revenues were up 47 last quarter, First Quarter compared to last year. Profits up few times and stocks up near the 52week high. Low Interest Rates for the future makes for a great real estate business which is great for the stock and dividend which is now 7 . Real estate as a hedge. I want to bring in my colleagues, kell and tyler. Take it away. Thank you so much for joining us and i love what you just said because theres a colleague, Brian Reynolds over at rosenblatt securities who says were in a bigger badder credit boom and commercial real estate may be the next bubble and everything youve just said is consistent with this playing out. Why shouldnt we think over the next year or two we see the trends in todays market amplified and exaggerated to some extent relative to even what were witnessing today. Well, i think thats fair. Look, very low Interest Rates for a long period of time are going to push people into making certain decisions. Equities will do w