The companys ceo speaks to a report hes looking to take over a londonbased company. We will ask the ceo coming up. The day of reckoning arrives at General Motors. 15 heads roll for the recall controversy but no one at the very top taking the fall. Can gm now put the issue behind it . Well have the latest and hear from a consultant for the company, as well as lawyer for the plaintiffs whos still not satisfied. Take a look at markets here heading into the close, scott. Welcome to the hour where we seem to keep setting these new record highs. Lately its been the s p. Today it looks like the dow is going to join it, it is up 95 points at the moment. 1,6 1,682, a new high. The nasdaq also having a reasonably strong day. Adding 43 points or 1 . Finally the s p 500 already been setting a string of record highs. Looks like it could do it again today adding almost 12, 1,939 is the level there. Joining our Closing Bell Exchange today, rich peterson, jeff layman, dick burress, Steve Leisman and Rick Santelli as well. Dick, ill go to you first. Why couldnt draghi do what tepper did . What happened . Was that question for me . Yes, it was. Well, i think what hes doing is not enough, frankly. But i do think that the Central Banks around the world are setting things up for an epic battle between Interest Rates and corporate earnings around the world. I think ultimately corporate earnings will win that battle. Bonds will go down. Stocks may have a correction as Interest Rates start to rise. But ultimately corporate earnings will surprise the up side and stocks will make new highs in to next year. You think corporate earnings are going to surprise to the up side like they did in the First Quarter . Rich peterson, what would that require. Again, what were seeing for the Second Quarter looking for a 7. 1 gain 7. 1 year on year. For second year. For full year looking at over 7 . Thats going to increase in the Third Quarter to 9 and double digits by the final quarter of this year. Corporations are doing all stops necessary to drive the bottom line. But whether thats doing buybacks or doing acquisitions or thats doing corporate mergers. Any means necessary to beat those numbers. Are we going to see top line growth . Thats what will lead the markets even higher than where we are now. Not just David Teppers comments or the ecbs comments on negative rates and depositories. I think top line growth will spur the markets, may spur the markets even higher. Steve leisman, ill go to you. Should the market be disappointed in anything that draghi delivered . He shot a lot of bullets today. So he didnt pull out the bazooka. Maybe he wants to keep it in his back pocket in case he needs it. I think he kind of overpromised and made a nebulous delivery, scott. Were really not quite sure about this one thing he has, as assetbacked securities. They have to kind of create the market before they can go in and purchase assets in it. It seemed like he said qe, but the market is kind of squish shi on that because they were kind of doing it before. Looks like they sort of made it official. He underdelivered when it came to the Interest Rate. I think the package overall surprised to the up side but it is a matter of execution and i think the market wants to see that to believe it. Maybe it is the tepper thing thats driving this whole tepper thing is silly. Why . Well first of all, i got a problem with what he said before. What was he concerned about before . Was there any doubt that the eu the eurozone folks were going to deliver they failed to deliver for two years. He was nervous about the ukraine elections. He was nervous that draghi had talked the talk so many times, was he going to walk the walk . Was the u. S. Economy going to start picking up . He says some of his fears have been alleviated to some extent. I think some people took some of davids money here and i like david, especially because is he a member of the follicically challenged. Nivs didnt mean bearish. Weve talked about this on this show with kate kelly and everybody else whos been through here talking to guys who run money who have been consistently bearish. Jeff, i wonder if it is too early to call this to some extent capitulation by the bears. Do you think when tepper throws in the towel on that quasi bearish call that others will follow . Could be a sign. I think theres been a constant stream of things to worry about in the recent year, last five years for that matter. You look underlying whats going on in the economy, unemployment coming down, Household Net Worth at a new record high, im pretty optimistic about not only revenue but also earnings trends improving Going Forward. Are your clients getting back into this market if theyve been out of it into stocks . Our clients have been in and continue to get back in, absolutely, and feel pretty good about it. Not in the context of over exuberance. It is really more just good exposure to the markets at reasonable valuation levels. Maybe they dont want to miss out. Largest proliferation of money still resides in the bond market right now. 1. 2 trillion of fixed income bond money that was pumped into the market since 2006. A lot of it still resides there. We talked about this great rotation last year. It never happened. It hasnt happened yet so there is still a lot of cash sitting on the sidelines, perhaps alluding to the fact you think it happens now, Rick Santelli . No, i dont think it ever happens. Get ready. I dont. I think at this point, five years after a crisis, it seems to me that those have carved out where they want to be invested and where they dont. I think we make a couple of errors though to make an assumption that just because there are investors that have diversified and stuck with the fixed income sovereign market like treasuries and bunds doesnt mean they dont have a presence in the equity markets. As a matter of fact, it is the hedge that keeps on giving. I remember in january, on this show, when questioned about who in their right mind would buy a fixed income product, at 3 , i remember saying anybody whos bearish. Equities. Youve now made money in equities and youremakering money on the hedge. Rick, i just got a question to for you. What does draghi have to do now to trash this currency. Had he a fourpoint plan today that everybody said should have led to a weaker euro. He cant get there. Does very to come out and say the euro stinks . Anything hes doing now could potentially fuel germany to perform even better. Rick, isnt that the case . Really what were arguing about is the reason i done believe that the euro is going to exist in its current form several years down the road. I think that the countries that are having a problem wouldnt have a problem if they had their own currency. And the strength in the euro is more of a proxy dinar that the germans could live with but the southern europeans cant and thats the flaw in the structure and i think it will come back to haunt them. And ill take it a step farther. I dont know that the ecb truly has the authority to go directly into the Securities Market so thats why i done think that bazooka is ever going to get fired. So we are looking at an s p 500 thats at 1,940. The dow, we keep hitting these new highs every day, rich. Are the worst scenarios now off the table . I mean we dont have to worry about europe. Do we . Do we have to worry about china . Whats the big upset thats out there that were not focusing on . On one hand, we call it the goldilocks movement. Elvis costello markets in other states. By that i mean pump it up. The fact is tomorrow we get the jobs numbers. If you have over 200,000 new jobs in the four consecutive months of over 200,000, we havent seen that consecutive Movement Since 1999. We saw better car sales in may. 16 million. Is it all a credit boom . Is it all a credit bubble . Do people watching this show need to worry if they get in right now, yeah, theyre riding a wave but it is going to come crashing down. Look at valuations. For 2015 earnings per share of 131 through the s p 500. 12month target for june of 2015, 2,100. Rich, the economic thesis for this year sounds like it is the same as the stock thesis. It is not a gangbusters, things are going to go great. It is the absence of headwinds, the absence of things that have held us back in the past is the reason why the economists had become more bullish on this year. Sounds like that translates directly its not im so excited about it, im just not all that depressed about it. We lost like 10 trillion to the sidelines since march of 2009. In march 2009 the valuation of the s p 500 was 7 trillion. Now were over 17 trillion. Those who nay sayed the dow at 1000, 1,200, 1,500, at one point normalization will take hold. Well meet reality but when that comes we dont know. Rick santelli, what potentially breaks the bond markets back . I mean is it a big print tomorrow in the jobs number . Is it a dow that goes over 17,000 possibly tomorrow if you get a blowout number . What is it . Well, i think obviously if the dow gets to 17,000 or 18,000, that that potentially will put some upward pressure on Interest Rates. That makes sense. But i truly think that theres two big issues that are keeping rates down. One is not a sustainable economy at the backbone of the United States of america right now, even though it has glimmers of hope. And i think the relative spread trade to some of the rates in europe like the spanish, the italian, the french rate, just auger that it is very difficult to think that im going to sell our rate when their rate is lower for really a lesser credit. Theres not enough debt out there. For our viewers, can you just give the places you see an opportunity in this market today. I think that theres still good value in u. S. Stocks, and particularly finding highdividend payers. Weve been buying gm lately. We think the recall issues will pass and that stocks got some good potential over the next 18 months. We are still pretty fond of emerging markets. Weve been adding money because we think the valuation will take care of us over the long haul. Good to hear from everybody this hour. So much going on today. Thanks. Breaking news now in netflix. Julia boorstin joins us with the details. Netflix is firing back at verizon. Just sent netflix a cease and desist letter trying to get netflix to stop blaming verizon for slow streaming or buffering for its consumers. Netflix says this is about consumers not getting what they paid for from their broadband provider. We are trying to provide more trance parn pay just like we do with the isp speed index and verizon is trying to shut down that discussion. This battle, this he said she said back and forth between netflix and verizon is heating up ahead of the launch of a new netflix show. All 13 episodes of orange is the new black hitting tomorrow which could bring more slow speeds and buffering. Wow. Wow. Julia, thank you. Nearly 45 minutes before the bell rings to close this day on the street. Dow right now is just off the highs of the day. Still having a good one, almost up triple digits now, 16,832. Central Bank Delivering some unprecedented measures to stimulate the economy but the question is whether it will help or hurt u. S. Companies to have a lot of european exposure. Seema mody will look next at names you need to know. Gotham Asset ManagementJoel Greenblatt whose investment philosophy has been compared to Warren Buffetts gives his take on the markets. Which stocks does he says you need to own for the long haul. General motors ceo firing 15 people stemming from the recalls. No one at the very top got the ax though. Well get reaction from the lead attorney in a class action suit against gm coming up along with a gfltm executive. 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. 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How about the dow today just shy of 16,840. 16,833 is a gain of nearly 100 points. Really spurred earlier in the day when our own kate kelly talked to david tepper. He told her that most of his fears have been alleviated to a certain extent. Remember it was out in las vegas at the salt conference. Not that long ago where he said it was nervous time. Was looking for europe to do something. Had questions about the ukrainian elections, also what bs going on in our own economy, today feeling a little bit better. He was bullish then, but perhaps today he is feeling even a little more bullish about the markets given the events weve seen and the markets are in the green across the board. They are. Another banner day looks like. Dominic chu is tracking the markets. Green across the board. Joy global leads the percentage gainers on the s p 500. This after the mining economicsmaker posted better than expected Second Quarter profits. Joy global session highs up 6. 5 . Then theres siena moving higher posting Second Quarter earnings and sales that beat wall street forecasts. Up 18 on the day. Barnes noble gaining ground on news that its teaming up with samsung to develop nook Tablet Computers allowing it to focus more on software than the hardware side of the business. Barnes noble up 3 on that bit of news. Were going to end with smith and nephew on the medical device side which is moving lower, down by about 6 . Wells fargo said it is unlikely that medtronic will make a bid for the british medical devicemaker after this analysts spoke with medtronics management at the companys investor days. In a programming note, medtro c medtronics ceo will be on live closing bell in just a few moments right here on cnbc. So youll definitely want to stay tuned for that interview. Europe in the meantime a focal point for investors at mario draghi unveiled new plans to try to jumpstart the economy. Will it be a source of strength or weakness . Seema mody joins us now with this special report. Thats right. The answer really depends on the companies products and services. European travel market, for example, has been recovering and thats been a positive for Online Travel player priceline. Analysts say Going Forward growth from bookings. Com, its European Hotel booking site, will continue to provide a lift to earnings. A different story though for garman given its strong consumer business, stiff competition from tom . They expect europe to be a headwind. While Harmon International recently raised its forecast, the reason there, stronger demand for its Audio Systems from european luxury carmakers. Auto desk while the rise in construction in europe has been a boon for the company because it focuses on architectural design, ubs says expect europe to be a headwind for the company because these new contracts wont be recognized in the near term. When it comes to being a vaccen. Given their focus on cost cutting issues, they are faring well. Some companies are being hurt by the weak european economy, others are seeing it as an opportunity. Back to you guys. Seem kl a, thank you. 40 minutes until the close. So far, universal, the overwhelming message, however you want to put it, is apparently positive in response to what the European Central bank has done today. S p 500 up almost 12 im sorry, 1,939 the level there. Those will be record highs if we stay at these levels. Another week, another u. S. Company mulling a foreign takeover to minimize tax payments to uncle sam. Well ask medtronics ceo whats behind the reports hell be bidding for ukbased smith nephew. Whats next for General Motors . Well speak with a lead attorney in a Class Action Lawsuit against the auto giant later on the closing bell. Re the think. The job jugglers. The up allnighters. And the ones who turn ideas into action. Weve made our passions our lifes work. We strive for the moments where we can say, i did it we are entrepreneurs who started it all. With a signature. Legalzoom has helped start over 1 million businesses, turning dreamers into business owners. And were here to help start yours. Welcome back. Were a little more than halfanhour from medical devicemaker medtronic ringing the closing bell here at the Stock Exchange as the Company Holds its investors conference here in new york, scott. Plus, the company. Has been in the news this week reportedly considering a takeover of londonbased smith nephew. Lets bring in medtronics ceo, omar ishrak. Great to speak to you this afternoon. Any truth to this talk of a potential deal with smith and nephew . You know, it is a longstanding policy not to comment